Planning Commission

AGENDA Phone: 541-682-5481 Meeting Location: www.eugene-or.gov/pc Virtual Meeting (Via Zoom) The Eugene Planning Commission welcomes your interest in these agenda items. In response to COVID-19 meetings will continue to be held remotely using virtual meeting technology until further notice. Information about online or other options for access and participation is available on the last page of this agenda. For the hearing impaired, assistive-listening devices or an interpreter can be provided with 72- hour notice prior to the meeting. Spanish-language interpretation may also be provided with 72-hour notice. These services may not be available during the Planning Commission meeting based on service availability but may occur as a follow up service. To arrange for these services, contact the Planning Division at 541-682-5675. TUESDAY, December 6, 2022 – Public Hearing (5:30 pm) Commissioners: Ken Beeson; Diane Behling; Tiffany Edwards; Lisa Fragala (Vice Chair); Dan Isaacson (Chair); Jason Lear, Chris Ramey I. Public Hearing Skinner Butte Height Limitation Area Amendment (Market District Expansion) (CA 22-3) Public Hearing on a code amendment which would allow for additional development potential for several properties in the Skinner Butte Height Limitation Area. Staff: Dylan Huber-Heidorn, 541-682-5475, Dhuber-heidorn@eugene-or.gov [See next page for information on public hearing format and how to attend the hearing] Page 1 of 28 Public Hearing Format: The order of procedure will be as follows, unless modified by the Planning Commission Chair as may be necessary or appropriate: 1. The Planning Commission Chair will summarize procedures and commence the hearing. 2. City staff will provide a brief introduction and summary of the application/appeal. 3. Testimony will first be allowed from the applicant and those in support of the application 4. Testimony will then be allowed from parties who are neither proponents nor opponents. 5. Testimony will then be allowed from the opponents/appellants. 6. Staff may provide a response to testimony, as needed. 7. Planning Commissioners may then ask questions of staff (note that commissioners may also raise questions that might arise during any individual testimony). 8. Rebuttal will then be allowed from the proponent/applicant. 9. Finally, the Planning Commission Chair will announce whether the hearing and record is closed, held open, or if the public hearing will be continued. HOW TO ACCESS THE MEETING To watch a webcast of the meeting live: Visit: https://www.eugene-or.gov/2109/Planning-Commission-Webcasts To be able to participate in the Public Hearing join using one of the two following options: 1. Join on your computer, tablet or smartphone Visit: https://eugene-or-gov.zoom.us/j/88568352100 Sign up to speak by clicking once on the “raise hand” icon 2. Join on your phone Dial one of the below numbers and enter the Webinar ID: 885 6835 2100 +1 833-548-0276 (Toll Free); or +1 833-548-0282 (Toll Free); or +1 877-853-5257 (Toll Free); or +1 888-475-4499 (Toll Free); For higher quality, dial a number based on your current location. International numbers available: https://eugene-or-gov.zoom.us/u/kbEgyMKe59 Sign up to speak by dialing *9 (Star-9) Page 2 of 28  AGENDA ITEM SUMMARY December 6, 2022 To: Eugene Planning Commission From: Dylan Huber-Heidorn, Community Development Division Subject: Public Hearing and Possible Action on Land Use Code Amendments: Skinner Butte Height Limitation Area Amendment (City File: CA 22-3) ACTION REQUESTED Hold a public hearing and possibly take action on a land use code amendment to increase allowable building heights in a limited area to expand opportunities for development in the downtown area. BRIEFING STATEMENT The goal of this proposed land use code amendment is to increase allowed building heights for several parcels located within the Skinner Butte Height Limitation Area to allow for additional development opportunities downtown. The amendment proposes an allowance for taller building heights on four parcels located on the south side of East 5th Avenue between Oak and Pearl Streets, as well as two parcels located on the north side of East 5th Avenue, between Willamette and Pearl Streets. This amendment would increase the allowable building height on the six parcels from 500 feet above mean sea level (approximately 70 feet) to 530 feet above mean sea elevation (approximately 100 feet). A draft of the proposed code language, findings, and a Figure which shows the affected area is provided as Attachment A. BACKGROUND The Skinner Butte Height Limitation Area (found at Eugene Code (EC) 9.6715) is a height limitation area in the land use code that applies to properties located between the Willamette River and 6th Avenue, and between Washington Street and Coburg Road. It was established to maximize the views to and from Skinner Butte as a reaction to the construction of Ya-Po-Ah Terrace, Eugene’s tallest building. The Skinner Butte Height Limitation Area restricts buildings, accessory roof structures, and architectural features to a specified height. In 2018, the City Council approved an increase in the allowable building height for properties within the Skinner Butte Height Limitation Area located on the southern half-block along 6th Avenue. This update was intended to allow for additional building height (up to 110 feet) that would serve as a transition from the downtown core, towards the butte. It also helped facilitate development opportunities that assist with City goals of increasing the number of residential units in the downtown area. For about 30 years, Obie Companies and other developers have invested heavily in the area, creating a distinct subarea of downtown with a range of retail activity, housing, and Page 3 of 28 employment commonly called the 5th Street Market. Obie Companies was the primary advocate for the creation of the 2018 height transition area, which provided for additional design flexibility and increased density on the recently completed development that includes a 127- unit apartment building (Gordon Lofts), a three-story retail and office building, and a hotel, all at the corner of 6th Avenue and Pearl Street. Obie Companies is proposing to construct two apartment developments near the recent 5th Street Market expansion; see the map in Attachment B for the development areas. Similar to the Gordon Lofts, the buildings are envisioned at seven stories tall, roughly 100 feet high, with a total of approximately 313 dwellings constructed above ground-floor retail. As with the Gordon Lofts site prior to the 2018 code amendment, the current restrictions of the Skinner Butte Height Limitation Area do not allow for that level of height. The properties that Obie Companies proposes to develop have an existing ground elevation of approximately 430 feet above sea level, creating an effective height limit of approximately 70 feet (including rooftop equipment and architectural features). It is noted that without the Skinner Butte Height Limitation the zoning of the properties, C-2 Community Commercial and S-F Fifth Avenue Special Area Zone, would typically allow for buildings up to 120 feet tall to be constructed. Currently, each of the properties proposed for housing/mixed use developments are occupied by surface parking lots. The northern site is adjacent to two registered historic structures: the Oregon Electric Railway Passenger Station and an accessory building to the Southern Pacific Railroad Depot. Obie Companies intends to fill each of those buildings with new tenants or uses. The Eugene Downtown Plan includes numerous policies to promote density in the Plan area, including a major chapter on housing and support for vibrant commercial activity throughout. The Plan also identifies a list of development opportunity areas which features the “County Elections block” (between 5th and 6th Avenues, Oak and Pearl Streets) and the “Train depot area” (between the railroad tracks and 5th Avenue, at the terminus of Oak Street). An update to the Skinner Butte Height Limitation Area for additional height for the Obie Companies proposal for two mixed-use buildings has the potential to achieve the following Downtown Plan objectives and policies: • Redevelop two of the identified Development Opportunity Areas, which are currently surface parking lots • Utilize development tools and incentives to encourage denser development • Stimulate more housing in downtown • Facilitate dense development between the core of downtown and the Willamette River • Emphasize 5th Avenue as a Great Street, especially now that it connects to the river The City Council initiated the land use code amendment process on July 25, 2022. The agenda item summaries from City Council’s initiation of the land use process and a related work session item on July 18, 2022, are provided as Attachment B. Page 4 of 28 Public Hearing Notice Notice of the Planning Commission public hearing was mailed to the property owner, owners and occupants within 300 feet of the site, all neighborhood organizations in Eugene, the Oregon Department of Land Conservation and Development, Lane County, City of Springfield, and community groups and individuals who have requested notice. Signs announcing the hearing were posted on and around the property. All notice procedures were provided consistent with the Type IV procedures from the Eugene Code. Testimony was received from three parties. Two letters of support were provided, one from Obie Companies and the other from Philip Farrington. The other letter was from the Fair Housing Council of Oregon and the Housing Land Advocates. The testimony from Fair Housing Council and the Housing Land Advocates argues that the City’s proposed findings related to Statewide Planning Goal 10 are insufficient. The findings which are attached to the draft code address this testimony. All testimony is included as Attachment C. Any additional written comments received after the preparation of this staff report will be provided to the Planning Commission at the public hearing for inclusion into the public record. Current information regarding this and other land use code updates is available on the City’s Land Use Code Amendments web page. Procedures/Applicable Approval Criteria This proposed code amendment is subject to Type IV application procedures (EC 9.7400 through EC 9.7455) for the upcoming public hearing, as well as the applicable approval criteria from EC 9.8065. The Type IV process includes public notice and a hearing before the Planning Commission, which then forwards a recommendation to the City Council for a final public hearing and action. Following the public hearing, the Planning Commission will deliberate and make a recommendation to the City Council to either approve, approve with modifications, or deny the proposal, based on the required approval criteria. This may occur following the public hearing (time permitting) or at a later Planning Commission meeting. As noted above, the Planning Commission must address the relevant approval criteria from EC 9.8065 in making a recommendation to the City Council on the proposed ordinance. Staff’s preliminary findings addressing these approval criteria, with updates based on the testimony received, are provided for the Planning Commission’s consideration as Attachment A. Recommendation/Next Steps Staff recommends that the Planning Commission hold a public hearing and review the public testimony related to the proposed land use code amendments. Following the public hearing, the Planning Commission will deliberate on the proposed code amendments and provide a recommendation to the City Council. Staff has provided a draft ordinance that would allow the increase in building height if the Commission would like to recommend that it be allowed, see Page 5 of 28 Attachment A. Following the Planning Commission recommendation, a public hearing before the City Council will be held, and Council will make the final decision on this item. ATTACHMENTS A. Draft Code Language - Skinner Butte Height Limitation Amendment B. Eugene City Council Agenda Item Summary from July 18 & 25, 2022 C. Testimony Received Through November 29, 2022 FOR MORE INFORMATION Contact Dylan Huber-Heidorn at 541-682-5475 or dhuber-heidorn@eugene-or.gov Page 6 of 28  ORDINANCE NO. _______ AN ORDINANCE CONCERNING THE SKINNER BUTTE HEIGHT LIMITATION AREA, AMENDING SECTION 9.6715 AND FIGURE 9.6715(3) OF THE EUGENE CODE, 1971. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Subsection (3) of Section 9.6715 of the Eugene Code, 1971, is amended to provide as follows: 9.6715 Height Limitation Areas. (1) Purpose of Height Limitation Areas. Certain geographical landmarks have scenic attributes that are of value to the community as a whole. To protect views to and from these landmarks, special limitations on building height are established on and around them. (2) Applicability. Special building height limitations apply to the specific areas listed in this section. If the exceptions provided for in EC 9.6720 Height Exemptions for Roof Structures and Architectural Features conflict with the building height limitations in this section, this section shall apply. All elevations in the height limitation areas shall be based on the mean sea level. (3) Skinner Butte Height Limitation Area. The boundaries of the Skinner Butte Height Limitation Area are as follows: All property lying east of Washington Street, lying north of, and including, the north side of 6th Avenue, lying west of Coburg Road, and lying south of the Willamette River. (See Figure Map 9.6715(3) Skinner Butte Height Limitation Area.) (a) Except as provided in subsections (b) and (c), Wwithin the Skinner Butte Height Limitation Area, the maximum height of any building or structure is 500 feet above mean sea level. as follows: 1. Where the existing ground elevation is at, or below, 460 feet above mean sea level: a. Except for buildings and structures located entirely within the southern half blocks between 5th and 6th Avenues, the maximum height shall be to an elevation of 500 feet above mean sea level. b. For buildings and structures located entirely within the southern half blocks between 5th and 6th Avenues, the maximum height shall be to an elevation of 530 feet above mean sea level. 2. The area referred to in subsection (3)(a)(1) as the “southern half blocks between 5th and 6th Avenues” is that area located within the Skinner Butte Height Limitation Area and not more than 193 feet north of the centerline of 6th Avenue. (b) Where the existing ground elevation within the Skinner Butte Height Limitation Area is above 460 feet above mean sea level, the maximum height of any building or structure shall be 40 feet above the existing ground elevation at all points. Page 7 of 28  (c) In the area identified as the Opportunity Area on Figure 9.6715(3), the maximum height of any building or structure shall be 530 feet above mean sea level. (d c) In neither no case shall the maximum height of any building or structure exceed the maximum allowed in the zone. Section 2. Figure 9.6715(3) is amended as shown in Exhibit A to this Ordinance. Section 3. The findings set forth in Exhibit B attached to this Ordinance are adopted as findings in support of this Ordinance. Section 4. The City Recorder, at the request of, or with the concurrence of the City Attorney, is authorized to administratively correct any reference errors contained herein or in other provisions of the Eugene Code, 1971, to the provisions added, amended or repealed herein. Section 5. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions hereof. Further, if this Ordinance is remanded back to the City Council for further action by the Oregon Land Use Board of Appeals, those sections, subsections, sentences, clauses, phrases or portions that do not require action on remand shall be deemed separate, distinct, and independent provisions and such remand shall not affect their validity or effect. Passed by the City Council this Approved by the Mayor this _____ day of MONTH, 2023 ____ day of MONTH, 2023 ____________________________ _____________________________ City Recorder Mayor Page 8 of 28 Figure 9.6715(3) Exhibit A Skinner Butte Height Limitation Area Int e r st ate 1 05 Willamette River NLAWRENCE CHESHIRE AVE 660 feet 440 feet E 2ND AVE WASHINGTON ST 460 feet SHEL RG R W 3RD AVE TON D LINCOLN ST MCMUR PHEY B LVD CO BU PEARL ST CHARNELTON ST HIGH ST WILLAMETTE ST E 4TH AVE OLIVE ST E 5TH AVE OAK ST E 6TH AVE Skinner Butte Height Limitation Area Opportunity Area 0 300 Ft 600 ¯ Page 9 of 28  Skinner Butte Height Limitation Area Amendment (City File CA 22-3) Overview Skinner Butte Height Limitation Area Amendment: The goal of this Skinner Butter Height Limitation Area Amendment is to increase allowed building heights for several parcels located within the Skinner Butte Height Limitation Area in order to allow for additional development opportunities in the downtown area. The City undertook a similar process in 2018 which resulted in an amendment to the Skinner Butte Height Limitation Area to allow for higher building heights along the entire southern half block between 5th and 6th Avenues. This code amendment allows for higher building heights on four additional parcels located between 5th and 6th Avenues and Oak and Pearl Streets, as well as two parcels located between 4th and 5th Avenues and Willamette and Pearl Streets. Council unanimously initiated this project on July 25, 2022. This amendment will increase allowable building heights on the six additional parcels from 500 feet above mean sea level, to 530 feet above mean sea level. This will result in an allowance for buildings up to approximately 100 feet in height, where buildings on those parcels were previously limited to approximately 70 feet in height. Findings Eugene Code Section 9.8065 requires that the following approval criteria (in bold italics) be applied to a code amendment: (1) The amendment is consistent with applicable statewide planning goals adopted by the Land Conservation and Development Commission. Goal 1 - Citizen Involvement. To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning process. The City has acknowledged provisions for community involvement which ensure the opportunity for citizens to be involved in all phases of the planning process and set out requirements for such involvement. The code amendment does not amend the citizen involvement program. The process for adopting this amendment complied with Goal 1 because it is consistent with the City’s acknowledged citizen involvement provisions. A Notice of Proposed Amendment was filed with the Oregon Department of Land Conservation and Development on October 11, 2022, and a public notice was mailed on October 14, 2022. Additionally, a notice was posted in the Register Guard, the local newspaper of general circulation, on October 26, 2022. A public hearing was held before the Planning Commission on November 15, 2022, followed by deliberations on November 15, 2022. Following deliberations, Planning Commission made a recommendation to the Eugene City Council. A public hearing will be scheduled before the City Council in early 2023. Page 10 of 28 These processes afford ample opportunity for citizen involvement consistent with Goal 1. Therefore, the code amendment is consistent with Statewide Planning Goal 1. Goal 2 - Land Use Planning. To establish a land use planning process and policy framework as a basis for all decisions and actions related to use of land and to assure an adequate factual basis for such decisions and actions. Eugene’s land use code specifies the procedure and criteria that were used in considering this amendment. The record shows that there is an adequate factual basis for the amendment. The Goal 2 coordination requirement is met when the City engages in an exchange, or invites such an exchange, between the City and any affected governmental unit and when the City uses the information obtained in the exchange to balance the needs of the citizens. To comply with the Goal 2 coordination requirement, the City engaged in an exchange about the subject of this amendment with affected governmental units. Specifically, the City provided notice of the proposed action and opportunity to comment to the Oregon Department of Land Conservation and Development as well as to Lane County and the City of Springfield. There are no exceptions to Statewide Planning Goal 2 required for this amendment. Therefore, the amendment is consistent with Statewide Planning Goal 2. Goal 3 - Agricultural Lands. To preserve agricultural lands. The amendment will only affect property located within the City of Eugene and does not affect any land zoned or designated for agricultural use. Therefore, Statewide Planning Goal 3 does not apply. Goal 4 - Forest Lands. To conserve forest lands. The amendment will only affect property located within the City of Eugene and does not affect any land zoned or designated for forest use. Therefore, Statewide Planning Goal 4 does not apply. Goal 5 - Open Spaces, Scenic and Historic Areas, and Natural Resources. To conserve open space and protect natural and scenic resources. OAR 660-023-0250(3) provides: Local governments are not required to apply Goal 5 in consideration of a PAPA unless the PAPA affects a Goal 5 resource. For purposes of this section, a PAPA would affect a Goal 5 resource only if: (a) The PAPA creates or amends a resource list or a portion of an acknowledged plan or land use regulation adopted in order to protect a significant Goal 5 resource or to address specific requirements of Goal 5; (b) The PAPA allows new uses that could be conflicting uses with a particular significant Goal 5 resource site on an acknowledged resource list; or (c) The PAPA amends an acknowledged UGB and factual information is submitted demonstrating that a resource site, or the impact areas of such a site, is included in the amended UGB area. This amendment does not create or amend the City’s list of Goal 5 resources, does not amend a land Page 11 of 28 use code provision adopted to protect a significant Goal 5 resource or to address specific requirements of Goal 5, and does not amend the acknowledged urban growth boundary. Therefore, the amendment does not affect (a) or (c). In regards to (b), the properties subject to the amendment do not contain any Goal 5 resources. However, the 1978 Scenic Sites Working Paper and accompanying map, which are a part of the City’s adopted significant Goal 5 inventory (see Ordinance No. 20351), identifies Skinner Butte is as a “Scenic Site” (as both a “Vista” and as containing “Prominent and Plentiful Vegetation”). Per OAR 660-023-0230, “scenic views and sites” are lands valued for their aesthetic appearance. Skinner Butte has long been recognized and valued in the community for its aesthetic appearance, which is evidenced by the adoption of the Skinner Butte Height Limitation Area in 1968. Notably, this predates the adoption of Statewide Planning Goal 5 in December 1974. Section 9.6715(1) of the Eugene Code (EC) describes the purpose of height limitation areas as follows: “Certain geographical landmarks have scenic attributes that are of value to the community as a whole. To protect views to and from these landmarks, special limitations on building height are established on and around them.” Properties on the south side of 6th Avenue, which are not located within the Skinner Butte Height Limitation Area, have a maximum building height of 150 feet for C-3 Major Commercial zoned properties and 120 feet for C-2 Community Commercial zoned properties. Currently, the Skinner Butte Height Limitation Area (HLA) limits the six affected properties to a maximum building height of 500 feet above mean sea level, or approximately 70 feet above grade. South of the six affected parcels, the half-block strip on the north side of 6th Avenue (within the HLA) allows heights of up to 530 feet above sea level. The current proposal would identify an additional six properties on which the maximum height for buildings and other structures would be 530 feet above mean sea level. This would result in these select properties being able to add an approximately 30 feet of additional building height, which when considering zones to the south, still limits building height in a way that is sensitive to Skinners Butte. Additionally, the properties that are subject to the building height increase are located more than 500 feet from the base of Skinner Butte and more than 1,100 feet from the viewing area at the top of the butte. Given the distance between the subject properties and Skinner Butte, the potential impact to the views to and from the butte is minimal. Moreover, the difference in allowed height for buildings on the six additional properties does not meaningfully impact views from the majority of surrounding streets. The remainder of the height limitation area will remain in place. The change to the Skinner Butte Height Limitation Area does not conflict with the scenic value of the butte or the viewing of its prominent and plentiful vegetation and therefore does not allow new uses that could be conflicting uses with a significant Goal 5 resource site. The amendment is consistent with Statewide Planning Goal 5. Goal 6 - Air, Water and land Resource Quality. To maintain and improve the quality of the air, water and land resources of the state. Page 12 of 28 Goal 6 addresses waste and process discharges from development and is aimed at protecting air, water, and land from impacts from those discharges. The amendment does not affect the City’s ability to provide for clean air, water, or land resources. Therefore, the amendment is consistent with Statewide Planning Goal 6. Goal 7 - Areas Subject to Natural Disasters and Hazards. To protect life and property from natural disasters and hazards. Goal 7 requires that local government planning programs include provisions to protect people and property from natural hazards such as floods, landslides, earthquakes and related hazards, tsunamis, and wildfires. The amendment does not amend or repeal any policies or regulations that protect people and property from natural hazards. Therefore, the amendment is consistent with Statewide Planning Goal 7. Goal 8 - Recreational Needs. To satisfy the recreational needs of the citizens of the state and visitors, and where appropriate, to provide for the siting of necessary recreational facilities including destination resorts. Goal 8 ensures that recreational facilities are provided to Oregon citizens and is primarily concerned with the provision of those facilities in non-urban areas of the state. The amendment does not affect the City’s provisions for or citizens’ access to recreation areas, facilities, or recreational opportunities. Therefore, the amendment is consistent with Statewide Planning Goal 8. Goal 9 - Economic Development. To provide adequate opportunities throughout the state for a variety of economic activities vital to the health, welfare, and prosperity of Oregon’s citizens. Goal 9 requires cities to evaluate the supply and demand of commercial land relative to community economic objectives. The amendment does not impact the supply of industrial or commercial lands. Instead, the amendment increases the capacity of existing land zoned to allow commercial development by allowing additional building height. Therefore, the amendment is consistent with Statewide Planning Goal 9. Goal 10 - Housing. To provide for the housing needs of citizens of the state. Goal 10 requires the City to provide an adequate supply of residential buildable land to accommodate the City’s estimated housing needs for a 20-year planning period. The Envision Eugene Residential Land Supply Study (2012-2032) was adopted by the City of Eugene in 2017 as a refinement of the Envision Eugene Comprehensive Plan and complies with the requirements of Goal 10 and Chapter 660, division 008 of the Oregon Administrative Rules. The amendments do not alter or amend the City’s adopted Envision Eugene Residential Lands Supply Study. The amendment does not impact the supply of residential buildable land, because the subject properties are shown as “Developed Residential Lands” and “Committed or Protected Lands.” These categories are distinct from “Vacant” or “Partially Vacant Residential Lands” because they were not considered as having future development or redevelopment potential when the Residential Land Page 13 of 28 Supply Study was done (see Residential Land Supply Study Part I – Page 5). No land is being re-zoned or re-designated from residential use to a nonresidential use. Accordingly, the amendment does not impact the supply or availability of residential lands included in the documented supply of “buildable land” that is available for residential development as inventoried in the acknowledged Residential Lands Supply Study. Therefore, the amendment is consistent with Statewide Planning Goal 10. Goal 11- Public Facilities and Services. To plan and develop a timely, orderly and efficient arrangement of public facilities and services to serve as a framework for urban and rural development. The amendment does not affect the City’s provision of public facilities and services. Therefore, Statewide Planning Goal 11 does not apply. Goal 12- Transportation. To provide and encourage a safe, convenient and economic transportation system. The Transportation Planning Rule (OAR 660-012-0060) contains the following requirement: (1) If an amendment to a functional plan, an acknowledged comprehensive plan, or a land use regulation (including a zoning map) would significantly affect an existing or planned transportation facility, then the local government must put in place measures as provided in section (2) of this rule, unless the amendment is allowed under section (3), (9) or (10) of this rule. A plan or land use regulation amendment significantly affects a transportation facility if it would: (a) Change the functional classification of an existing or planned transportation facility (exclusive of correction of map errors in an adopted plan); (b) Change standards implementing a functional classification system; or (c) Result in any of the effects listed in paragraphs (A) through (C) of this subsection based on projected conditions measured at the end of the planning period identified in the adopted TSP. As part of evaluating projected conditions, the amount of traffic projected to be generated within the area of the amendment may be reduced if the amendment includes an enforceable, ongoing requirement that would demonstrably limit traffic generation, including, but not limited to, transportation demand management. This reduction may diminish or completely eliminate the significant effect of the amendment. (A) Types or levels of travel or access that are inconsistent with the functional classification of an existing or planned transportation facility; (B) Degrade the performance of an existing or planned transportation facility such that it would not meet the performance standards identified in the TSP or comprehensive plan; or (C) Degrade the performance of an existing or planned transportation facility that is otherwise projected to not meet the performance standards identified in the TSP or comprehensive plan. The amendment does not change the functional classification of a transportation facility, change the standards implementing a functional classification system, or degrade the performance of a facility Page 14 of 28 otherwise projected to not meet performance standards. Therefore, the amendment does not have a significant effect under (a) or (b). In regard to (c), the level of increased development that may result from the additional building height would have a negligible impact on any transportation facility. Therefore, the amendment does not significantly affect any existing or future transportation facilities. Based on the above findings, the amendment is consistent with Statewide Planning Goal 12. Goal 13 - Energy Conservation. To conserve energy. The amendment does not negatively impact energy conservation. Instead, increased capacity for development on the subject properties allows for additional construction of buildings that are likely to consume less energy per unit area than the same uses would consume in a smaller building. Goal 13 is also concerned with the provision of efficient transportation options; the amendment would provide for denser development which is more suited to public transit and other forms of energy efficient transportation. Based on these findings, the amendment is consistent with Statewide Planning Goal 13. Goal 14 - Urbanization. To provide for an orderly and efficient transition from rural to urban land use. The amendment does not affect the City’s provisions regarding the transition of land from rural to urban uses. Therefore, Statewide Planning Goal 14 does not apply. Goal 15 - Willamette River Greenway. To protect, conserve, enhance and maintain the natural, scenic, historical, agricultural, economic and recreational qualities of lands along the Willamette River as the Willamette River Greenway. The amendment does not contain any changes that affect the Willamette River Greenway regulations; therefore, Statewide Planning Goal 15 does not apply. Goal 16 through 19 - Estuarine Resources, Coastal Shorelands, Beaches and Dunes, and Ocean Resources. There are no coastal, ocean, estuarine, or beach and dune resources related to the property affected by this amendment. Therefore, these goals are not relevant and the amendment will not affect compliance with Statewide Planning Goals 16 through 19. (2) The amendment is consistent with applicable provisions of the comprehensive plan and applicable adopted refinement plans. Applicable Metro Plan Policies The following policies from the Metro Plan (identified below in italics) are applicable to this amendment. To the extent that the following policies constitute mandatory approval criteria, based on the findings provided below, the amendment is consistent with and supported by the applicable provisions of the Metro Plan. Environmental Design Element Page 15 of 28  E.5 Carefully develop sites that provide visual diversity to the urban area and optimize their visual and personal accessibility to residents. The intent of this amendment is to permit taller buildings on certain specific properties while still preserving the views to and from Skinner Butte. The height standards in the amendment are still more restrictive than those in adjacent commercial zones, so they will preserve views to and from Skinner Butte and create an area of transition between areas of differing building heights. E.6 Local jurisdictions shall carefully evaluate their development regulations to ensure that they address environmental design considerations, such as, but not limited to, safety, crime prevention, aesthetics, and compatibility with existing and anticipated adjacent uses (particularly considering high and medium density development locating adjacent to low density residential). Consistent with this policy, the amendment provides a creative solution to preserving the views to and from Skinner Butte while promoting commercial and residential development downtown. Envision Eugene Comprehensive Plan The Envision Eugene Comprehensive Plan does not contain any policies relevant to this amendment. Applicable Refinement Plans The Eugene Downtown Plan (2004) contains policies relevant to this amendment: Chapter 1: Strong Regional Center, Policy 1. Downtown development shall support the urban qualities of density, vitality, livability and diversity to create a downtown, urban environment. The amendment supports the development of a denser, more peopled downtown. Additionally, it represents regulatory flexibility that makes residential development more appealing to property owners as an alternative to leaving downtown land as vacant lots, surface parking, or similar uses with significant negative externalities. The amendment and its promotion of additional residential units, vitality, and downtown livability are consistent with this policy. Chapter 2: Building a Downtown, Policy 2. Use downtown development tools and incentives to encourage development that provides character and density downtown. Reasonable use of tools such as height limitation areas in combination with incentives such as increased height allowances can achieve the multiple goals of downtown density, appreciation of natural landscapes, and the other priorities embodied in the HLA. The amendment is consistent with this policy. Chapter 3: Great Streets, Policy 1. Emphasize Broadway, Willamette Street, 5th and 8th Avenues as Great Streets through public improvements and development guidelines. Include portions of these streets as follows: • Willamette between 5th and 13th Avenues Page 16 of 28  • Broadway between Lincoln and Hilyard • 5th Avenue between Lincoln and High Street (with potential extension to the Willamette River) • 8th Avenue between Willamette Street and the Willamette River. 5th Avenue is the core of the affected area, and its continued importance to downtown has led to the development growing around it: the 5th Street Market. Flexibility in development guidelines around this great street will incentivize filling gaps in the streetscape such as vacant lots and underutilized surface parking. Additionally, with the completion of the 5th Avenue extension to the Riverfront, this area has become an important connection between downtown and the Willamette River. The amendment is consistent with this policy. Chapter 5: Living Downtown, Policy 1. Stimulate multi-unit housing in the downtown core and on the edges of downtown for a variety of income levels and ownership opportunities. The amendment would open new options for development on the affected parcels, including higher counts of residential units than would be possible under the current code. The combination of this incentive with the HLA’s height limits would, for example, “Remove regulatory barriers to the development of housing in commercially zoned areas downtown, while ensuring compatibility of uses and design,” (Implementation Strategy D). The amendment is consistent with this policy. Chapter 6: Downtown Riverfront, Policy 4. Facilitate dense development in the courthouse area and other sites between the core of downtown and the river. 5th Avenue has been extended into the Downtown Riverfront and now represents a major corridor for connection between downtown and the river. Existing and future developments are poised to make this area one of the busiest subdistricts in the city’s core. The amendment would facilitate denser development in key locations, and it is therefore consistent with this policy. Based on the above findings, the proposal is consistent with and supported by the applicable provisions of these adopted plans. (3) The amendment is consistent with EC 9.3020 Criteria for Establishment of an S Special Area Zone, in the case of establishment of a special area zone. The amendment does not establish a special area zone. Therefore, this criterion does not apply. Page 17 of 28  Attachment B CITY COUNCIL AGENDA ITEM SUMMARY Action: Initiation of Land Use Code Amendment for 5th Street Market Expansion Meeting Date: July 25, 2022 Agenda Item Number: 8 Department: Planning and Development Staff Contact: Will Dowdy www.eugene-or.gov Contact Telephone Number: 541-682-5340 ISSUE STATEMENT Obie Companies is planning an expansion of the 5th Street Market District. Staff provided a project update on July 18, 2022. At this meeting, City Council will have the opportunity to consider initiating changes to Eugene’s Land Use Code to enable the 5th Street Market District expansion as proposed. Next Steps Any updates to the City’s Land Use Code require City Council to initiate the process, which does not infer support for any proposed changes. The formal adoption process for an amendment to the land use code includes notice to the Oregon Department of Land Conservation and Development and interested parties, a public hearing before the Planning Commission who provides a recommendation to City Council, a public hearing before the City Council, and action by the City Council. This process typically takes at least 3-4 months for an amendment of this nature. PREVIOUS COUNCIL DIRECTION July 23, 2018 meeting Council deliberated on actions related to the previous expansion of the 5th Street Market District. Councilor Clark, seconded by Councilor Taylor, moved to adopt Council Bill 5192, an Ordinance Concerning the Skinner Butte Height Limitation Area. The motion passed 8:0. Councilor Clark, seconded by Councilor Taylor, moved to adopt Council Bill 5193, an Uncodified Ordinance Concerning the Gordon Hotel Sign. The motion passed 8:0. Councilor Clark, seconded by Councilor Taylor, moved to adopt Council Bill 5194, an ordinance vacating the portion of E. 5th Alley, and a portion of Pearl Alley, and providing for an effective date. The motion passed 8:0. April 9, 2018 meeting Council deliberated on the initiation of Land Use Code changes related to the 5th Street Market expansion project. Councilor Clark, seconded by Councilor Taylor, moved to initiate a code amendment creating a tiered height limit in the Skinner Butte Height Limitation Area and moved to initiate an uncodified ordinance waiving height requirements for roof signs on the proposed Gordon Hotel site. The motion passed 8:0. Page 18 of 28  Attachment B COUNCIL OPTIONS 1. Initiate a land use code amendment creating a parcel-specific height limit in the Skinner Butte Height Limitation Area. 2. Decline to initiate a land use code amendment creating a parcel-specific height limit in the Skinner Butte Height Limitation Area. CITY MANAGER’S RECOMMENDATION The City Manager recommends that City Council initiate a land use code amendment, leading to a Planning Commission public hearing and recommendation and Council public hearing before further Council deliberation. SUGGESTED MOTION Move to initiate a land use code amendment creating a parcel specific height limit in the Skinner Butte Height Limitation Area. ATTACHMENTS A. Agenda Item Summary from July 18, 2022 work session FOR MORE INFORMATION Staff Contact: Will Dowdy Telephone: 541-682-5340 Staff E-Mail: WDowdy@eugene-or.gov Page 19 of 28 CITY COUNCIL AGENDA ITEM SUMMARY Work Session: 5th Street Market District Expansion Project Update Meeting Date: July 18, 2022 Agenda Item Number: 4 Department: Planning and Development Staff Contact: Will Dowdy www.eugene-or.gov Contact Telephone Number: 541-682-5340 ISSUE STATEMENT Obie Companies is planning an expansion of the 5th Street Market District. At this work session, staff will provide a project update and identify expected future decisions for City Council. No action is proposed; this item is for information only. BACKGROUND The 2004 Downtown Plan identified the “County Elections block” (between 5th and 6th Avenues, Oak and Pearl Streets) and the “Train depot area” (between the railroad tracks and 5th Avenue, at the terminus of Oak Street) as first and second on a list of Development Opportunity Areas. In 2018, Obie Companies, in partnership with Homes for Good and Lane County, expanded the 5th Street Market District to the west side of Oak Street, adding new housing units, retail, hotel rooms, and office space to downtown Eugene. At that time, City Council enabled the project to be developed as envisioned by approving land use code amendments for building height and roof sign standards, approving a Multi-Unit Property Tax Exemption (MUPTE), and approving an alley vacation. Obie Companies has a new proposal to expand the 5th Street Market District in the County Elections block and Train depot area. The project has the potential to achieve the following objectives from the 2004 Downtown Plan: • Redevelop two identified Development Opportunity Areas • Expand the 5th Avenue Area (a Special Place and a Great Street in the Downtown Plan) • Stimulate multi-unit housing in the downtown core and on the edges of downtown. Project Status Obie Companies is in the planning and design stage of future expansion of the 5th Street Market District, which will provide more retail, restaurants, and housing along the 5th Avenue corridor in downtown. The first phase of the new expansion is planned for the parking lot immediately east of the Oregon Electric Station building, at the north terminus of Oak Street. The second phase of the expansion is the half block on the south side of 5th Avenue, adjacent to the new Gordon Lofts and Gordon Hotel. (See Attachment A.) Obie Companies has envisioned these buildings as 7-story Page 20 of 28 structures, like the Gordon Lofts, with ground-floor retail and a combined residential count of approximately 325 new units. The Skinner Butte Height Limitation Area (EC 9.6715) applies to properties between the Willamette River, 6th Avenue, Washington Street, and Coburg Road. It restricts buildings and accessory roof structures and architectural features to a specified height (either 500 feet above sea level or 40 feet tall, whichever is greater; except for those properties within a half block of 6th Ave., which may extend up to 530 feet above sea level). The subject properties that Obie Companies proposes to develop have an existing ground elevation of approximately 430 feet above sea level, creating an effective height limit of approximately 70 feet (including rooftop equipment and architectural features). The current design for the Market District expansion is dependent on an amendment to the Land Use Code to allow 7-story buildings in these locations. Obie Companies has indicated that the envisioned height of these buildings allows for increased density (additional housing units) beyond what would otherwise be allowed by the code, and this additional density is what makes the project economically feasible. The properties are currently zoned I-2 (Light-Medium Industrial), which has no height limit when not subject to the Skinner Butte Height Limitation. Other properties in downtown Eugene have height limits of 120 ft. for properties in the C-2 (Community Commercial) zone and 150 ft. for properties in the C-3 (Major Commercial) zone, with roof structures and architectural features allowed an additional 18 feet of height. The current design is contingent on rezoning of the property from I-2 to C-2, for which Obie Companies has submitted a zone change application. Additionally, Obie Companies has indicated interest in the Multi-Unit Property Tax Exemption (MUPTE) program, which requires approval by Council. At this time, they have not submitted a MUPTE application. Connection to the Housing Implementation Pipeline (HIP) The Overall Housing Supply category of the HIP has 5-year goals that include 1) issuing permits for the construction of 6,000 housing units city-wide, and 2) increasing the amount of housing downtown by 50% from 2021. The proposed Market District expansion projects would account for 5% and 25% progress, respectively towards these goals. Next Steps Any updates to the City’s Land Use Code require City Council to initiate the process, which does not infer support for any proposed changes. Council will have an opportunity to initiate the Code Amendment at the July 25 Council meeting. The formal adoption process for an amendment to the land use code includes notice to the Oregon Department of Land Conservation and Development and interested parties, a public hearing before the Planning Commission who provides a recommendation to City Council, a public hearing before the City Council, and action by the City Council. This process typically takes at least 3-4 months for an amendment of this nature. Page 21 of 28 PREVIOUS COUNCIL DIRECTION July 23, 2018 meeting – Council deliberated on actions related to the previous expansion of the 5th Street Market District. Councilor Clark, seconded by Councilor Taylor, moved to adopt Council Bill 5192, an Ordinance Concerning the Skinner Butte Height Limitation Area. The motion passed 8:0. Councilor Clark, seconded by Councilor Taylor, moved to adopt Council Bill 5193, an Uncodified Ordinance Concerning the Gordon Hotel Sign. The motion passed 8:0. Councilor Clark, seconded by Councilor Taylor, moved to adopt Council Bill 5194, an ordinance vacating the portion of E. 5th Alley, and a portion of Pearl Alley, and providing for an effective date. The motion passed 8:0. April 9, 2018 meeting – Council deliberated on the initiation of Land Use Code changes related to the 5th Street Market expansion project. Councilor Clark, seconded by Councilor Taylor, moved to initiate a code amendment creating a tiered height limit in the Skinner Butte Height Limitation Area and moved to initiate an uncodified ordinance waiving height requirements for roof signs on the proposed Gordon Hotel site. The motion passed 8:0. COUNCIL OPTIONS No action; information only. ATTACHMENTS Context Map of project site within Skinner Butte Height Limitation Area FOR MORE INFORMATION Staff Contact: Will Dowdy Telephone: 541-682-5340 Staff E-Mail: WDowdy@eugene-or.gov Page 22 of 28  Skinner Butte Height Limitation Area Proposed Market District expansion, Phase 1 5th Ave Proposed Market District expansion, Phase 2 6th Ave Previous Market District expansion 7th Ave 8th Ave Broadway Washington St Willamette St Oak St Pearl St High St Attachment A Page 23 of 28  From: Sarah Means To: HUBER-HEIDORN Dylan K Cc: SULLIVAN Althea C Subject: CA 22-3 Date: Monday, November 28, 2022 4:37:08 PM Attachments: image001.png [EXTERNAL ] Dear Planning Commission Members, Thank you for the opportunity to provide testimony in support of the proposed Code Amendment (CA 22-3). The properties included in this file are part of the Market District. Obie Companies is the parent company of the property owners. As we have done with the Market District expansion completed in 2020, Obie Companies is excited to continue the work of creating development opportunities in the downtown area. We believe strongly in creating vibrancy in downtown Eugene. Providing opportunities for residents to live downtown is critically important. We are eager to build on the momentum created by Market Alley and the Gordon Lofts and expand residential opportunities in the Market District. A recommendation of approval of this application would be a significant step in that direction for the subject properties. Recently, a zone change (Z 22-9) was approved for the properties included in this application. The zone change allows for mixed use development including high density residential use. The working plan for these properties includes mixed use buildings with retail/commercial on the ground floor and residential on the floors above. The additional 30 feet in height as suggested in the code amendment language will capture a net increase of more than 100 residential units across both properties based on conceptual plans. This increased density is essential in meeting the need and demand for residential units within the City of Eugene and is certainly consistent with the city’s downtown and comprehensive plans. We also want to acknowledge the proximity of these properties to historic buildings. The Oregon Electric Station and the Southern Pacific Passenger Depot are important buildings in this community and to Obie Companies. Our plans acknowledge and preserve these buildings. In fact, they are critical to the success of this proposed development moving forward and will play an important role. We look forward to the opportunity ahead that will re-energize these historic spaces. Again, we believe the proposed code amendment is consistent with city’s downtown and comprehensive plans along with the clear and urgent need for additional housing units. We urge you to support the proposed amendment. Thank you for your consideration and service to the City of Eugene. Sarah Means Director of Government & Community Relations Address 296 E. 5th Ave, Suite 300 Page 24 of 28  obiecompanies.com Eugene, Oregon 97401 Direct 541.743.0750 | Cell 503.784.3915 Page 25 of 28  From: Philip Farrington To: HUBER-HEIDORN Dylan K Cc: SULLIVAN Althea C Subject: CA 22-3 Date: Monday, November 28, 2022 3:39:32 PM [EXTERNAL ] Dear Eugene Planning Commission: Please accept this testimony in support of the proposed Code Amendment (CA 22-3) allowing for increased building height for the proposed Market District Expansion. As you well know, there is a profound housing crisis in our community and across the state. The recent study produced by Oregon Housing and Community Services, “Oregon Housing Needs Analysis Recommendations Report,” identified a need for more than 554,000 new housing units to accommodate two decades of growth and underproduction of housing. You also know that the Eugene Hearings Official recently approved a zone change (Z 22-9) for properties included in the pending land use application before you. That zone change, which was not appealed, facilitates the proposal to construct hundreds of new housing units, consistent with meeting the desperate housing needs outlined in the OHCS report, and in keeping with the city’s Downtown Plan and comprehensive plan. Approval of the requested code amendment would further facilitate realizing community goals, objectives and demonstrable need for housing in a mixed-use development format. The code amendment proposed is a modest one – increasing the allowable height limit by only 30’. But in terms of facilitating high density residential development that will be financially feasible in today’s era of soaring financing and construction costs, this 30’ is pivotal in helping reach community objectives. I urge you to support the proposed amendment, and appreciate your consideration and service to the city, Phil Philip Farrington, AICP Director of Planning & Real Estate Development CDC Management Corp. 800 Willamette Street, Suite 750 Eugene, OR 97401 Office (541) 338-8334, ext. 1 Direct (541) 600-8018 Cell (541) 600-7030 pfarrington@cdcmgmtcorp.com Page 26 of 28 November 22, 2022 Eugene Planning Commission 101 W 10th Avenue, Eugene, OR 97401 Re: Code amendment which would allow for additional development potential for several properties in the Skinner Butte Height Limitation Area. (CA 22-3) Dear Commissioners: This letter is submitted jointly by Housing Land Advocates (HLA) and the Fair Housing Council of Oregon (FHCO). Both HLA and FHCO are non-profit organizations that advocate for land use policies and practices that ensure an adequate and appropriate supply of affordable housing for all Oregonians. FHCO’s interests relate to a jurisdiction’s obligation to affirmatively further fair housing. Please include these comments in the record for the above-referenced proposed amendment. As you know, all amendments to the City’s Comprehensive Plan and Zoning map must comply with the Statewide Planning Goals. ORS 197.175(2)(a). When a decision is made affecting the residential land supply, the City must refer to its Housing Needs Analysis (HNA) and Buildable Land Inventory (BLI) in order to show that an adequate number of needed housing units (both housing type and affordability level) will be supported by the residential land supply after enactment of the proposed change. Goal 10 findings are also required for code changes affecting residential development feasibility, such as parking standards and setbacks. The staff report states that because “the amendment does not impact the supply or availability of residential lands,” Goal 10 is met. However, the amendment clearly alters the potential housing capacity of the area in question, so findings which cite the existing need and quantify the impact of the amendment are clearly required. In the Applicable Refinement Plans section of the staff report, it states that the amendment “makes residential development more appealing to property Page 27 of 28  FAIR HOUSING COUNCIL OF OREGON owners as an alternative to leaving downtown land as vacant lots, surface parking, or similar uses with significant negative externalities," so clearly, increasing the housing supply is an intention of this amendment, and it is incumbent upon the City to determine how much could be produced. See Mulford v. Town ofLakeview, 36 Or LUBA 715, 731 (1999) (rezoning residential land for industrial uses); Gresham v. Fairview, 3 Or LUBA 219 (same); see also, Home Builders Assn. of Lane Cty. v. City of Eugene, 41 Or LUBA 370,422 (2002) (subjecting Goal 10 inventories to tree and waterway protection zones of indefinite quantities and locations). Only with a complete analysis, utilizing both the HNA and BLI, can housing advocates and planners understand whether the City is achieving its goals through CA 22-3. HLA and FHCO urge the Commission to defer adoption of CA 22-3 until Goal 10 findings can be made, and the proposal evaluated under the HNA and BLI. Thank you for your consideration. Please provide written notice of your decision to, FHCO, c/o Allan Lazo, at 1221 SW Yamhill Street, #305, Portland, OR 97205 and HLA, c/o Jennifer Bragar, at 121 SW Morrison Street, Suite 1850, Portland, OR 97204. Please feel free to email Allan Lazo at information@fhco.org or reach him by phone at (503) 223-8197 ext. 104. Thank you for your consideration. Allan Lazo Jennifer Bragar Executive Director President Fair Housing Council of Oregon Housing Land Advocates cc: Kevin Young (kevin.young@state.or.us) 2 Page 28 of 28