2018I June 25, 2018 $1000 fee pd chk

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1 2018I June 25, 2018 $1000 fee pd chk

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5 Legal Description of Property Lots 9 and 10, Block 14, Oakland City and County of Denver, State of Colorado also known by street and number as: 3562 Ivy Street, Denver, CO I June 25, 2018 $1000 fee pd chk

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7 Denver Property Taxation and Assessment System New Search 3562 IVY ST Owner Schedule Number Legal Description Property Type Tax District KNEPP,LARRY R KNEPP,AMY R 3562 IVY ST DENVER, CO OAKLAND B14 L9 & 10 RESIDENTIAL DENV Print Summary Property Description Style: ONE-STORY Building Sqr. Foot: 1140 Bedrooms: 3 Baths Full/Half: 2/0 Effective Year Built: 1955 Basement/Finish: 1140/1140 Lot Size: 6,250 Zoned As: E-SU-DX Mill Levy: Document Type: WD Note: Valuation zoning may be different from City's new zoning code. 2018I June 25, 2018 $1000 fee pd chk

8 Introduction: We are the Knepp s and own the home at 3562 Ivy Street. We are Larry, Amy, and our daughter, Alyssa. For the last ten years Amy and I have dreamt of retiring and living in Colorado. To that end we have purchased this home with our daughter. She has been in Denver for over ten years after having attended graduate school at the University of Denver and getting her nursing degree from Regis University. We chose this neighborhood purposely because of the many opportunities it presents and how it will fit our lifestyle in retirement. Amy and I are very active in our community and our home is a block away from the Boys and Girls Club where we would love to be active. My dream would be to assist in programs there where I could coach soccer, basketball (I am from Indiana), or other sports and work with them to create experiences for youth in the outdoors like fly fishing or hiking. Amy is a Nurse Practitioner and Nursing Professor and may work part-time depending on our schedule. It is also easy to get from here to downtown or the airport via the train and very close to I-70 for trips out of town. We would like to build a three-car garage with an Accessory Dwelling Unit (apartment) above it on the back of our property. At the same time we would remove the current single car garage that currently exists. When Amy and I retire we would live in the house and Alyssa would live in the ADU. This will set Amy and I up to be cared for by someone close by as we get older and provide an income property for our daughter when we are gone. We are working through the rezoning process with the assistance of the City Planning Department. While the process is longer than we had hoped it would be, we have to complement them on their efforts to guide us through the system and their invaluable advice. Thanks for considering this application. Regards, Larry Knepp

9 Consistency with Adopted Plans: 1. This proposal is consistent with the Comprehensive Plan 2000 in the following areas: a. The Land Use Strategy lists a specific strategy in Objective 2: Denver Zoning Ordinance that the Denver Zoning Ordinance will be: flexible and accommodating of current and future land use needs, such as home-based business and accessory flats (page 58) b. The Land Use Strategy lists a specific strategy in Objective 5: Land Use and Transportation that they Ensure that land-use policies and decisions support a variety of mobility choices, including light rail, buses,. This residence is within two miles of two light rail stations on the A line. (page 60) c. In the Housing section of the Comprehensive Plan 2000, one of the listed challenges is Affordable Housing. It states, Rising sales prices and rental rates and very low vacancy rates make affordable housing very hard to find. (page 111) This planned construction will add a unit to the housing inventory. If this statement was true when the Comprehensive Plan 2000 was adopted it is even more true now over 15 years later. d. The Housing Strategy lists a specific strategy in Objective 2: Preserve and Expand Existing Housing that states Upgrade and maintain streets, alleys, and other infrastructure in aging residential areas to encourage maintenance of the housing, retain housing values, and preserve stable and viable middle-income and affordable housing. (page 114) This proposal will completely upgrade and refurbish our alley facing land to current standards with new construction. e. The Housing Strategy lists a specific strategy in Objective 2: Preserve and Expand Existing Housing that states Review current codes and policies for residential infill development and additions to current homes. (page 114) This proposal is infill development on a very small scale. f. The Housing Strategy lists a specific strategy in Objective 2: Preserve and Expand Existing Housing that states Adjust codes and policies regarding accessory residential units, such as granny flats, mother-in-law apartments, and carriage units. (page 114) 2. This proposal is consistent with the Blueprint Denver in the following: a. In chapter 4 of the Blueprint Denver: The Plan Map there is a Development Standards table which lists development standards for each type of district, residential area and neighborhood, and center. One of the development standards is Accessory units encouraged. Single Family Residential areas is one of the residential area and neighborhood types which is marked as consistent with the accessory units. (page 68-69) b. The street designation for this area is Undesignated Local. This type of street is characterized by sidewalks, tree lawns, on-street parking, and alleys and rear-facing garages. On-street parking will be positively affected by this proposal as it provides for three off-street parking spaces where there currently exists only one. This will also replace a garage that currently sits side-facing to the alley with a rear-facing garage which will be more in line with the standard. (page c. This residence is in an area designated as an Area of Stability. As mentioned in 2.a above the Single Family Residential designation is a residential type that Development Standards list where accessory units are encouraged. (page 68-69)

10 d. One of the goals listed for an Area of Stability is to identify and maintain the character of an area while accommodating some new development and redevelopment. (page 120) 3. This proposal is consistent with the Park Hill Neighborhood Plan in the following: a. The Park Hill Vision for the future contains a statement that they want to, Create linkages to the future residential and business development in the new Stapleton community to enhance the economic and social impacts on Park Hill. (page 7) This ADU will provide an alternative to the high-density apartment/condominium complexes that are prevalent there as this residence is approximately one mile from the southwest edge of that development. b. In the neighborhood history the document states, Greater Park Hill is an idea and a vision, as well as a place. The vision during the last 40 years has been to create a community where people of different racial, ethnic, economic and cultural backgrounds would live and work peaceably together to build a stronger neighborhood. Park Hill, which is often called the conscience of the city, has created an intentionally multiracial and multi-cultural community, whose inclusionary example has influenced the human relations climate of Denver and the whole state of Colorado. Park Hill has become nationally known for its progressive efforts at promoting cultural and economic diversity. This is a legacy of which the neighborhood is proud. (page 8) This ADU would be one tiny step in helping continue that history by promoting an inclusionary community where various solutions to housing needs is encouraged. c. In the Land Use and Zoning section of the plan one of the top three action recommendations from the plan is Create and maintain a mix of housing types and sizes that are attractive and affordable to a diversity of ages, incomes, household types, sizes, cultural and ethnic backgrounds. (page 33) This ADU is a furthering of this action recommendation in one small incremental step. d. Throughout the Park Hill Neighborhood Plan there is a consistent theme of maintaining the neighborhood character. The Park Hill community is selectively increasing neighborhood businesses, including restaurants and small store fronts (example being the Park Hill Commons project). The incremental increase in density from including an ADU in the neighborhood will serve to make those establishments more likely to succeed. In our particular case the lack of visibility of the unit from the street will not impact the overall image and character of the residential neighborhood. 4. This proposal is consistent with the Denver Office of Economic Development s recently adopted policy, strategy, and investment document entitled Housing an Inclusive Denver in the following: a. Under Legislative and Regulatory Priorities one of the priorities listed includes Expand and strengthen land use regulations for affordable and mixed-income housing. Through Blueprint Denver and supplemental implementation actions such as zoning modifications, the City should support land use regulations that incentivize affordable and mixed-use housing, including the development of accessory dwelling units. (page 8) This proposal allows the City to take such a concrete step. i. In expanding further upon this priority on page 26 the report goes on to state: Currently, about 25% of Denver, excluding Denver International Airport, is

11 zoned to support development of an accessory dwelling unit, a secondary unit that can be attached or detached from the primary residence. However, some of the lots in these areas are not large enough to qualify for an accessory dwelling unit or ADU. This building form can provide more attainably priced housing options throughout predominantly single-family neighborhoods and can act as a wealth building tool to help low and moderate-income residents remain in vulnerable neighborhoods. Expanding the number and type of neighborhoods that allow ADUs should be explored as part of the Blueprint Denver update. b. Further in support of affordable homeownership opportunities it encourages the City to Promote programs that help families maintain their existing homes. The City and its partners should target existing homeowner rehabilitation programs to residents in vulnerable neighborhoods, promote financial literacy education for prospective and existing homeowners, and promote the development of accessory dwelling units as a wealth-building tool for low and moderate-income homeowners. (page 10) This is exactly what we are attempting to do, without funding requirements from the city, for our daughter. i. In elaborating on this priority on page 51 the report goes on to state, While a limited proportion of parcels citywide are zoned appropriately and have the minimum lot size necessary to build an accessory dwelling unit or ADU, some low- and moderate-income homeowners in vulnerable neighborhoods in West Denver and North Denver have the appropriate zoning and lot sizes to build such additional units. Across the country and in a limited number of circumstances in Denver, development of ADUs have been used as a tool to introduce new affordable rental stock into predominantly single-family neighborhoods. But ADUs can also provide a wealth-building tool (due to the rental income received over time) and support intergenerational households. Recognizing the potential for ADUs to stabilize low and moderate-income families at risk of becoming displaced from their existing homes due to rising prices, the City and partners are developing programs aimed at providing financial tools, streamlined permitting, and property management support to promote development of ADUs. ii. Additionally, one of the key actions identified in supporting this priority, again on page 51 of the report, is to: Promote development of accessory dwelling units as a wealth building tool for low and moderate-income homeowners in vulnerable neighborhoods and to support intergenerational households. Public Health, Safety, and General Welfare: 1. The anticipated project will promote the general health and welfare of the community by: a. Providing affordable housing in the community where there is a desperate need. (This is expanded on significantly above with mention of numerous plans and strategies encouraging the expansion of the use of ADUs.) b. Being located in an area close to:

12 Justifying Circumstances i. Public Transit the property is within two miles of two light rail stations providing access to downtown and the airport. ii. Public Parks the property is within half a block of the local public park (Skyland Park), within two blocks of the Hiawatha Davis Jr. Recreational Center, within one mile of the Park Hill Golf Club, within one mile of the Martin Luther King Jr Park and Recreation Center, within two miles of Central Park, Westerly Creek Park, Greenway Park, and Fred Thomas Park. iii. New Commercial Developments the property is within two miles of the Stapleton Community development. iv. In this day and age of Uber and Lyft proximity of a couple of miles is equivalent to a $5-6 cab ride. 1. Since the date of the approval of the existing Zone District there has been a change to such a degree that the proposed rezoning is in the public interest. a. One of the largest issues facing the City of Denver is the lack of affordable housing. i. A significant contributor to this situation is the rapid rise of housing costs in the city in the last ten years. According to the Case-Schiller Home Price Index for the City of Denver, home prices have risen 73% in the last ten years. Wages have not come anywhere close to matching this rise so housing has rapidly become unaffordable even for young professional constituents. This ADU will provide an affordable housing unit in the City. ii. The introduction to the Housing Advisory Committee s Housing an Inclusive Denver report spells out the significant growth in population in the city in the past seven years and the impact it has had on the housing market. Not only have home prices risen significantly, but rents have also outpaced gains in household incomes.

13 iii. Two major infrastructure projects have impacted this area significantly in the last ten years: 1. Light rail installation A Line This project has made the area in which this residence is located to be more attractive and hence more expensive. 2. Stapleton Area development has reached a tipping point whereby the amenities available have become a significant draw making the area more attractive and again more expensive iv. A quick search of apartments in the area with the amenities we would provide, 2 bedrooms, 1+ bath shows a price in the range of $2,000 per month. At this price point, these units can only be termed barely affordable, for most single income households. These are in what we would call big box apartment buildings and this project offers an alternative to that life style and cost. v. As part of this re-zoning process I have sat in on a couple of RNO meetings and in one of those meetings a presenter from a development group with a project in the pre-application phase of getting re-zoning presented their plan. This plan was to level a city block where there is currently a church. On this block they plan to build a townhouse development with approximately 25 units. The average price of these units is going to be in the $400k range. Someone asked how much they stood to make on this project and although he would not answer the question he did say that they hope to earn an IRR (Internal Rate of Return) in the 16-17% range. Given those three pieces of data one can work back to a project cost of $6.1 to $6.7 million given a four to five year payback and a unit cost of $245k to $270k. I estimate that our project can be built for $150k to $175k so our unit is much more affordable. b. The Denver s Office of Economic Development housing plan titled, Housing an Inclusive Denver, which was just adopted in February of 2018 makes the strongest arguments yet for the case for ADUs and making accommodations through zoning and expansion of land use regulations to promote them as an option. All of the published plans, blueprints, and documents make the case for this type of housing as documented in the section on Consistency with Adopted Plans. iii. More specifically on page 51 of the report, is states one of the key actions required is to, Promote development of accessory dwelling units as a wealth building tool for low and moderate-income homeowners in vulnerable neighborhoods and to support intergenerational households. This is exactly what we are trying to do ourselves and for the future for our daughter. iv. In the same section of this document it states: While a limited proportion of parcels citywide are zoned appropriately and have the minimum lot size necessary to build an accessory dwelling unit or ADU, some low- and moderate-income homeowners in vulnerable neighborhoods in West Denver and North Denver have the appropriate zoning and lot sizes to build such additional units. Across the country and in a limited number of

14 circumstances in Denver, development of ADUs have been used as a tool to introduce new affordable rental stock into predominantly single-family neighborhoods. Using an ADU as a tool for more affordable housing is what we are proposing. Our lot is large enough to accommodate an ADU under the proposed zoning change. The area around our residence is already accustomed to second and multi-unit housing as its previous zoning allowed for it. v. The more recent plans and Housing Authority documents encourage zoning accommodations for improvements where appropriate. The Park Hill area covers slightly over six square miles so one solution will not fit all areas, but certainly seems appropriate for our area. c. There is an old adage in business that states, If you re not growing, you re dying. The current zoning for our area and the general concept for the area describes Northeast Park Hill as an Area of Stability. This designation has led to the Curse of the Status Quo. Rather than an area of stability we have an area of stagnation and deterioration. Steps must be taken to reverse this trend and while this one step will not accomplish this goal, it will take a thousand little steps like this to change the direction, it is one step in the right direction. In the total county of Denver approximately 20% of homes are being turned over or added to inventory on an annual basis (2015 and 2016). In our zip code this figure is closer to 5%. i. There have been no lots in our area successfully rezoned from single unit status to another that I have been able to find since ii. Despite this lack of improvement in the last year, from 2016 to 2017, the property taxes in the area have risen significantly. Just my home and the homes directly adjacent to it have seen an increase of 21% in one year on a weighted average basis. iii. Only an increase in density in the area will prevent urban sprawl. This is what each blueprint, city plan, and neighborhood plan encourages. iv. A drive through our neighborhood shows pockets of deterioration with a growing number of unkept yards and alley ways that are accumulating trash. Buildings along the alleys range from double two-car garages to sheet metal structures that are certainly not permitted or up to code. v. Instances of crime in the city (violent and property crimes, from 2010 to 2017) have dropped by 13%, while in Northeast Park Hill since 2014 the instances of the same types of crime have risen by 22%. d. The ADU concept preserves the neighborhood feel and look versus building townhouses and apartments. i. Our project also has the benefit of creating additional usable off-street parking. Parking was a major concern voiced at the RNO meetings I attended. There was concern over multiple adults living in single family homes which increased the number of vehicles using on-street parking significantly. Consistency with Neighborhood Context, Zone District Purpose and Intent:

15 2. The proposed official map amendment is consistent with the description of the applicable neighborhood context, and with the stated purpose and intent of the proposed zone district. a. The area of this residence is classified as an Urban Edge Neighborhood. The specific intent of these Residential districts is to promote and protect residential neighborhoods within the character of the Urban Edge Neighborhood Context. These regulations allow for some multi-unit districts, but not to such an extent as to detract from the overall image and character of the residential neighborhood. i. The current zoning for this area is E-SU-Dx which is defined as a single unit district allowing suburban and urban houses with a minimum zone lot size of 6,000 square feet. ii. The requested zoning for this lot is E-SU-D1x which is defined as a single unit district allowing suburban houses, urban houses, and detached accessory dwelling units with a minimum zone lot area of 6,000 square feet. Setbacks and lot coverage standards accommodate front and side yards similar to E-SU-Dx and allow a detached accessory dwelling unit in the rear yard. iii. The only difference between the two designations is the accommodation of the accessory dwelling unit. The impact on the neighborhood is muted by the location in the rear yard requirement and in our particular case the fact that the unit would not be visible from the street. This fact will allow for this project with no detraction from the overall image and character of the residential neighborhood. There are eight separate Single Unit zoning designations, which may be a misnomer, due to the fact that three allow for accessory dwelling units. When we state that the building will not be visible from the street we are meaning that literally. Our lot is at one of the highest elevations in the area and the base of the house sits approximately seven feet higher than the street level. The house is on a full basement so the first level sits approximately 3 feet above the ground. On top of that then we have an eight foot first level and roof which adds about another four plus feet to the overall elevation above street level. That is a total of approximately 22 feet of height you have to look over before the building can be seen. Given the fact that the project will be placed at the back of the lot and you have to look over the house to see the structure, the building would have to be approximately 30 feet tall to be seen from our side of the Top of Peak 16 Front of Garage Top of First Floor Back of House Feet First Floor Level Ground Level Street Level

16 street and 25 feet tall to be seen from the opposite side of the street. the When iv. We do think that the ADU is the best alternative for us and the community based on the specific layout of our lot and the neighborhood. Possible alternatives would include simply adding a second story on the current structure. This, of course, would have to be reviewed through an engineering service for viability, but homes built in this era are typically built with enough leeway to accommodate an additional level. The main drawback to this option would be the look in the neighborhood as there are no two story structures in the area. There are some tri-level styled homes in the area. v. A second option could be to add on to the back of the home on the same level. This option would be environmentally disadvantageous as we would cover a significant part of the already limited green space that exists. b. All current plans, the Comprehensive Plan 2000, Blueprint Denver, Park Hill Neighborhood Plan, and the Housing an Inclusive Denver seek to promote and encourage ADUs specifically, or promote an inclusionary community where various solutions to housing issues is encouraged. c. Prior to the zoning change in 2010, this area was zoned R-2. This was defined as Typically duplexes and triplexes. Home occupations are allowed by permit. Minimum of 6,000 square feet of land required for each duplex structure with an

17 additional 3,000 square feet required for every unit over 2. This means that there are many lots in the area that already have two-unit or multi-unit dwellings on the property. Approximately 25% of the lots immediately surrounding our lot are more than one residence. The change of zoning in 2010 did not change the already existing context. d. We have already reached out to the neighbors directly adjacent to our lot with a brief letter outlining our proposed plan to act as a good neighbor and to get their reaction to our proposal. We hand delivered the letters to the eight homes directly adjacent to our house three different times. This process yielded responses from two of the eight neighbors. We then mailed the letters directly to the property owners of record to the remaining six. At this time we have responses from 4 of the eight neighbors, three of which are positive. The responses are included with this application. e. Meetings with Registered Neighborhood Organizations have been less than positive. The feedback we have received brings up issues that are either unrelated to our project or are covered by city plans and blueprints that are counter to their positions.

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