Ann Arbor Downtown Zoning Evaluation

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Ann Arbor Downtown Zoning Evaluation Options Workbook ENP & Associates in cooperation with the City of Ann Arbor September, 2013 Photo Courtesy of Andrew Horne, February 9, 2013

Introduction Thank you for participating in the evaluation of the Ann Arbor Downtown Zoning! This workbook has four sections: Ann Street site adjacent to City Hall North side of E. Huron Street between Division and State. South side of William Street between Main and Fourth Evaluation of premiums In each section, alternatives are presented to address the specific priority issue. The last page of each section contains questions for you. Your input is invaluable. When answering questions, keep in mind the Guiding Values for the Downtown from the 2009 Downtown Master Plan: Neighborhood, Community and Regional Focus Downtown will continue to accommodate and foster central business, government, shopping, cultural and entertainment functions within a reasonably compact, walkable area. Downtown s role as an activity center for surrounding neighborhoods, and as the social, cultural, and urban business center of the community and the region, will be strengthened. Diversity of Use Diversity of use is the key to unlocking downtown s potential as a focus of economic and social activity. A balanced mix of office, retail, housing, cultural, and entertainment uses will be promoted in order to draw people downtown in sufficient numbers to create a lively atmosphere and a profitable business setting. Emphasis will be placed on creating a critical mass of activity within a concentrated Core area. Diversity of Users Downtown will be accessible to everyone. Special efforts will be made to accommodate use and enjoyment by people of all ages and abilities. Balance New downtown development will be encouraged; but at the same time, existing assets and valued downtown characteristics will be conserved and strengthened. This balance between conservation and change will be fostered by emphasizing the use of incentives and guidelines. Image and Identity The preservation and rehabilitation of historic buildings will be encouraged to establish a positive image and marketable identity for downtown. Natural assets (including downtown s topography and its proximity to the Huron River), streetscape improvements, and open spaces will also be used to advantage in creating a clear development structure and a quality visual environment. Traditional land uses (including government functions and the Farmers Market) will be retained. Pedestrian Orientation Strong emphasis will be placed on downtown s quality as a place for people on foot by maintaining its sense of pedestrian scale; promoting an active street life; and providing a comfortable and convenient walking environment. Safety and security for downtown workers, residents, shoppers, and visitors will be maintained and enhanced. A2 Downtown Zoning Evaluation Options Workbook 1

Quality A high level of quality will be encouraged in the design and maintenance of buildings, streetscapes, and public spaces. Infrastructure Capacity Future growth and development will be phased to ensure that infrastructure demands to water, sanitary, storm water, open space and motorized and non-motorized transportation systems do not outstrip available capacities. At the same time, maintaining and investing in these infrastructure systems is essential to downtown s ongoing stability and vitality. Sustainability The downtown should be developed and maintained such that it continues to provide for future generations a viable economy, a green and energy-efficient built environment and transportation network, and social and cultural opportunities. The map below is the land use vision for the Downtown, established through community engagement and adopted by the City in 2009. This workbook, the presentation, and an online version of the questions can be found on the Ann Arbor Downtown Zoning Evaluation website: http://www.a2gov.org/downtownzoning. Workbooks will be collected at the end of this meeting, or online! A2 Downtown Zoning Evaluation Options Workbook 2

Ann Street Site Options Description (owned by U of M Credit Union) The site (shown in the photograph above to the left) if built out to its full potential under premiums (shown in model on right), may not meet the intent of downtown zoning to preserve and protect historic resources, namely the historic buildings and homes to the north). The site is surrounded by: City Hall to the west; multi-family residences to the north and east; and office and commercial uses along Huron to the south. The existing zoning for the entire block is D1 (maximum FAR = 400%, or 700-900% with premiums), in the E Huron 2 character district, which has a maximum height of 180 feet. A2 Downtown Zoning Evaluation Options Workbook 3

Ann Street Site Options Option Max. building height: 60 feet Max. FAR: 400% (with premiums) No conference center use No change to required setbacks Potential Impacts Reduces allowable building height to approximately five stories, compared to approximately 17 stories in D1/East Huron 2. Reduces shading impacts on adjacent residences. Requires premiums to maximize floor area. Would not allow buildings as tall as City Hall. Significantly reduces development potential. Allows a building up to 60 ft. in height to be constructed adjacent to a historic district (east property line). Leave D1 but eliminate premiums Max. FAR: 400%. Max. building height: 180 ft. Buildings greater than 4 stories will cover less than the entire site area. Rezone to Office Building size set by setbacks and height Max. building height: 55 ft. Setbacks: 15ft. front Effectively lowers the development potential & property values by up to 55%. Provides for the flexibility of a tall building on a smaller footprint. Does not require inclusion of premiums to maximize allowable floor area. Reduces the likelihood of a building taller than 5 stories, due to construction costs. Limits site to a similar height/scale to the residences to the north and east. Significantly reduces the development potential and value of the property. Significantly reduces density from 700% FAR to 75% Does not allow a mixture of uses that would be compatible with the adjacent commercial and office uses. Not consistent with the intent of the character district, and the downtown plan for that area.* A2 Downtown Zoning Evaluation Options Workbook 4

Ann Street Site Options Questions Do you think each alternative would result in buildings that better fit the context of the surrounding area? Yes No Not Sure Comments Leave D1 (as is) D1 without premiums Rezone to office What impact do you think each alternative would have on the downtown as a whole (thinking about residents, businesses, and visitors)? Leave D1 (as is) Positive Neutral Negative Not Sure Comments D1 without premiums Rezone to office A2 Downtown Zoning Evaluation Options Workbook 5

Ann Street Site Options How would you rate the alternatives for the Ann Street Site (please check any that apply)? Leave D1 (as is) Do not support Not my preferred alternative, but I can live with it Support Comments D1 without premiums Rezone to office Comments or Questions A2 Downtown Zoning Evaluation Options Workbook 6

William Street Description (owned by Rand Construction, long term lease to Edison) The site (shown in the photograph above left) if built out to its full potential under premiums (shown in the model above right), may not meet the intent of downtown zoning to preserve and protect historic resources at the east corner. Similar concerns about massing were expressed during the Connecting William Street process. The site is surrounded by: single- and multiple-family residences; older, two-story multiple-family dwellings; an electrical substation and a small commercial building to the east across a public alley; mixed commercial/office/residential buildings to the west; a multiple-family apartment tower to the south; and a public parking garage to the north. The existing zoning is D1 (maximum FAR = 400%, or 700-900% with premiums) and is in the Main Street Character District with a maximum height of 180 feet. The parcel has frontage on a primary street (north and west) and a secondary street (south). The site is located at a key corner of the downtown: Main Street and William Street. Although the parking lot is area available for building currently, the scenario should take into account the possibility that the entire site could be redeveloped. A2 Downtown Zoning Evaluation Options Workbook 7

William Street Option Potential Impacts Max. building height: 60 feet Max. FAR: 400% (with premiums) No conference center use No change to required setbacks Reduces allowable building height to approximately five stories, compared to approximately 17 stories in D1/Main Street. Reduces shading impacts on adjacent residences. Eliminates core designation of key corner in downtown. Would not allow buildings as tall as Ashley Mews or the 4 th & William parking structure. Significantly reduced development potential. Leave D1 but eliminate premiums Max. FAR: 400%. Max. building height: 180 ft. Buildings greater than 4 stories will cover less than the entire site area. Leave D1 and add requirements for setbacks, diagonals & stepbacks Max. FAR: 900% with premiums. Max. building height: 180 ft. Building further away from adjacent houses Provides the flexibility of a tall building on a smaller footprint. Does not require inclusion of premiums to maximize allowable floor area. Allows same mix of uses. Effectively lowers the development potential & property values by up to 55%. Reduces the likelihood of a building greater than 5 stories, due to construction costs. Less reduction in development potential than first two options. Reduces shading impacts on adjacent residences. Impacts rest of Main Street character district, not just this site. Provides the flexibility of a tall building on a smaller footprint. Provides additional guidance for design and massing of building. A2 Downtown Zoning Evaluation Options Workbook 8

William Street Questions Do you think each alternative would result in buildings that better fit the context of the surrounding area? Leave D1 (as is) Yes No Not Sure Comments D1 without premiums D1 with requirements for setbacks, diagonals, and stepbacks What impact do you think each alternative would have on the downtown as a whole (thinking about residents, businesses, and visitors)? Leave D1 (as is) Positive Neutral Negative Not Sure Comments D1 without premiums D1 with requirements for setbacks, diagonals, and stepbacks A2 Downtown Zoning Evaluation Options Workbook 9

William Street How would you rate the alternatives for the William Street Site (please check any that apply)? Leave D1 (as is) Do Not Support Not my preferred alternative, but I can live with it Support Comments D1 without premiums D1 with requirements for setbacks, diagonals, and stepbacks Comments or Questions A2 Downtown Zoning Evaluation Options Workbook 10

Huron Street Huron Street Description (owned by Dahlmann, owners of the Campus Inn) The site (shown in the photograph above left), if built out to its full potential under premiums (see model above right), may not meet the intent of downtown zoning to preserve and protect historic resources, specifically the neighborhood to the north. The site is surrounded by: Campus Inn to the east; Sloan Plaza to the west; single and multi-family residences to the north; and commercial uses to the south. The existing zoning is D1 (maximum FAR = 400%, or 700-900% with premiums) and is in the East Huron 1 Character District with a maximum height of 150 feet and a required setback of 30 feet from the adjacent residentially zoned property. The parcel has frontage on a secondary street. A2 Downtown Zoning Evaluation Options Workbook 11

Huron Street Option Potential Impacts Max. building height: 60 feet Max. FAR: 400% (with premiums) No conference center use No change to required setbacks Reduces allowable building height to approximately five stories, compared to approximately 14 stories in D1/East Huron 1. Reduces shading impacts on adjacent residences. Would not allow buildings as tall as those on either side or across the street. Significantly reduces development potential. Provides the flexibility of a tall building on a smaller footprint. Does not require inclusion of premiums to maximize allowable floor area. Leave D1 but eliminate premiums Max. FAR: 400%. Max. building height: 150 ft. Buildings greater than 4 stories will cover less than the entire site area. Leave D1 with requirements for setbacks, diagonals & stepbacks Max. FAR: 900% with premiums. Max. building height: 150 ft. Building further away from adjacent houses Effectively lowers the development potential & property values by up to 55%. Reduces the likelihood of a building greater than 5 stories, due to construction costs. Less reduction in development potential. Reduces shading impacts on adjacent residences. Impacts rest of character district, not just this site. Provides the flexibility of a tall building on a smaller footprint. Provides additional guidance on design and massing of building. Rezone to a hybrid D1.5 district Recognizes established development pattern on the block. A2 Downtown Zoning Evaluation Options Workbook 12

Huron Street Option Max. FAR: 200%-400%, 700%-900% with premiums Max. building height: <150 feet, but >60 feet Increased setback possible Potential Impacts Development could be consistent with Sloan Plaza & Campus Inn. Increases complexity of ordinance. A2 Downtown Zoning Evaluation Options Workbook 13

Huron Street Questions Do you think each alternative would result in buildings that better fit the context of the surrounding area? Leave D1 (as is) D1 without premiums D1 with requirements for setbacks, diagonals and step-backs Rezone to a hybrid "D1.5" district Yes No Not Sure Comments What impact do you think each alternative would have on the downtown as a whole (thinking about homes, businesses, and visitors)? Leave D1 (as is) D1 without premiums D1 with requirements for setbacks, diagonals and step-backs Rezone to a hybrid "D1.5" district Positive Neutral Negative Not Sure Comments A2 Downtown Zoning Evaluation Options Workbook 14

Huron Street How would you rate the alternatives for the Huron Street Site (please check any that apply)? Leave D1 (as is) Do not support Not my preferred alternative, but I can live with it Support Comments D1 without premiums D1 with requirements for setbacks, diagonals and step-backs Rezone to a hybrid "D1.5" district Comments or Questions A2 Downtown Zoning Evaluation Options Workbook 15

Premiums Description The downtown zoning adopted in 2009 provides for premiums or bonus floor area. Premiums provide an incentive for a developer to incorporate certain public benefits into the project, such as residential use or green building technologies, which might not currently be supported by the market. Premiums are allowed on property zoned D1 & D2 if the property is located entirely outside the historic district and/or the floodplain. Premiums are available for: Residential Use (D1 & D2): 0.75 square feet for every 1 square foot used for multiple-family dwellings Affordable Housing (D1 & D2): 3,000 square feet for every 1 affordable housing dwelling unit on-site. Allows FAR to go up to 900% in the D1. Green Building (D1 & D2): On a scale o LEED Silver: 50% of lot area o LEED Gold: 150% of lot area o LEED Platinum: 250% of lot area Historic Preservation (D1 & D2): Preserve a historic resource=50% of lot area (excluding lot area of historic resource) Pedestrian Amenity/Open Space (D1): 10 square feet for every 1 square foot of pedestrian amenity, with maximum of 8,000 additional square feet Public Parking (D1): Up to 200% of lot area not counted toward FAR of usable floor area for above grade parking available to the public. Nine projects have been approved and/or built under the downtown zoning enacted in 2009. Five projects used residential premiums (Zaragon West, 413 E. Huron, The Varsity, 618 South Main, 624 Church). One project (624 Church) used LEED Silver premiums. 4 projects did not use premiums. They were either expansions/additions (Zingerman s, UM Credit Union, Downtown Home & Garden) or a one-unit residential project. The projects with residential apartments approved under the 2009-adopted zoning have changed the downtown mix of apartments, increasing the number of 2-bedroom, 3-bedroom and 4-bedroom units. The buildings with 5 and 6- bedroom units were approved just before the zoning changes. A2 Downtown Zoning Evaluation Options Workbook 16

Premiums Option Potential Impacts Limit the type of residential dwelling unit that qualifies for premiums to 2 bedrooms or less Eliminate residential premiums except for affordable housing Other options with affordable housing premium: Eliminate 900% FAR (has not been used) Make affordable housing prerequisite for premiums, like minimum LEED energy points Require conformance to design guidelines to qualify for premiums (like the minimum LEED energy points) Other premiums (energy efficiency other than LEED and protection of urban forest/landmark trees) that could be included or made requirements Make premiums discretionary (not byright) Encourages development of smaller dwelling units in new projects Limits certain types of dwelling units that may be desired by the market Incentivizes housing units currently not being provided by the market. Affordable housing units are not guaranteed. Residential diversity aside from income not incentivized. Eliminates a premium that has been successful in stimulating residential development in the downtown. Impacts the desirability of parking, energy efficient building, historic preservation and pedestrian amenities premiums. 400 FAR not financially feasible for vertical residential construction, unless property values drop. Affordable housing units may be grouped together, not as part of the residential throughout downtown. Requires more and earlier involvement of the Design Review Board in the process. Requires additional processes and training to ensure the Design Review Board is providing clear direction to a developer. Does not directly address the size and shape of the buildings, which is handled in the character area massing (zoning) requirements. Adds time to site plan review and approval process Assists in the implementation of City s energy efficiency goals. Provides incentives for continued urban forest cover and landmark trees. Requires selection of energy efficiency standards, which currently are evolving. Tree protection may not be guaranteed. Allows case-by-case determination of community benefits associated with receipt of FAR as premiums may increase, similar to the PUD process. Reduces certainty for potential developers for calculating the economics of a project using premiums. May constrain the ability of a developer to obtain financing for a proposed development, similar to the PUD process (pre-2009) which was a deterrent to downtown investment. A2 Downtown Zoning Evaluation Options Workbook 17

Premiums Option Eliminate premiums Potential Impacts Removes a tool for increasing the density of the downtown consistent with the Downtown Plan recommendations. Requires re-evaluation of Downtown Plan s zoning recommendations Requires adjustment of land values, which have been established based on allowable zoning Encourages development of less expensive buildings with no variety in height and bulk possible. A2 Downtown Zoning Evaluation Options Workbook 18

Premiums Questions What impact do you think each alternative would have on residents in or near downtown? Improve the quality of life It will not change anything Degrade the quality of life Not sure Comments Leave as is Limit residential that qualifies for premiums (2 bedrooms or less) Eliminate residential premiums except for affordable housing Require conformance to design guidelines to qualify for premiums Other premiums (energy efficiency and protection of urban forest/landmark trees) Make premiums discretionary Eliminate premiums A2 Downtown Zoning Evaluation Options Workbook 19

Premiums What impact do you think each alternative would have on the downtown as a whole (thinking of residents, businesses and visitors), both now and in the future? Leave as is Positive Negative Not Sure Comments Limit residential that qualifies for premiums (2 bedrooms or less) Eliminate residential premiums except for affordable housing Require conformance to design guidelines to qualify for premiums Other premiums (energy efficiency and protection of urban forest/landmark trees) Make premiums discretionary Eliminate premiums A2 Downtown Zoning Evaluation Options Workbook 20

Premiums How would you rate the alternatives for premiums (please check any that apply)? Leave as is Limit residential that qualifies for premiums (2 bedrooms or less) Eliminate residential premiums except for affordable housing Require conformance to design guidelines to qualify for premiums Other premiums (energy efficiency and protection of urban forest/landmark trees) Make premiums discretionary Eliminate premiums Do not support Not my preferred alternative, but I can live with it Support Comments Comments or Questions A2 Downtown Zoning Evaluation Options Workbook 21

Comments, Questions & Suggestions Please use the space below for any comments, questions or suggestions not covered previously. Thank you for your time and input! Comments or Questions A2 Downtown Zoning Evaluation Options Workbook 22