Planning Commission

Spearfish Planning Commission Agenda Tuesday, April 7, 2020 - 3:00 PM Due to the ongoing COVID-19 situation, this meeting will be held via teleconference. Parties interested in providing input for the public hearing or seeking to provide public comment, please find the instructions to participate below. Please join the meeting from your computer, tablet or smartphone. https://global.gotomeeting.com/join/191918269 You can also dial in using your phone. United States: +1 (312) 757-3121 Access Code: 191-918-269 New to GoToMeeting? Get the app now and be ready when your first meeting starts: https://global.gotomeeting.com/install/191918269 A. Call To Order B. Roll Call C. Approve the Minutes from March 17, 2020 D. Declaration of Conflicts of Interest E. Items for Action 1. Request: Approve a C-1 Redevelopment Incentive Plan proposal Location: 437 N Main St Applicant: Jared Capp Action: Hold a public hearing and make a recommendation to City Council 2. Request: Approval of the boundaries of tax increment finance district number six (TIF 6). Location: North 1700’ of Tract V and Tract H both of the Elkhorn Ridge Addition, and the South 17’ of the North 50’ of the NW ¼ of Section 21, Township 6 North, Range 3 East, BHM, Lawrence County, South Dakota and the ADA Compliance: The City of Spearfish fully subscribes to the provisions of the Americans with Disabilities Act. If you desire to attend this public meeting and are in need of special accommodations, please notify the Building and Development Office at 642-1335 and 24 hours prior to the meeting so that appropriate auxiliary aids and services are available.  Spearfish Planning Commission Agenda (continued, page 2) South 17’ of the North 50’ of the NE ¼ of Section 21, Township 6 North, Range 3 East, BHM, Lawrence County, South Dakota including the East Colorado Boulevard right-of-way Applicant: City of Spearfish Action: Hold a public hearing and make a recommendation to City Council F. City Council Update G. Public Comment Public comments are welcome at this time, however, no action will be taken. H. Adjournment  Spearfish Planning Commission Regular Session Minutes March 17th, 2020 The Spearfish Planning Commission met in regular session on Tuesday, March 17th, 2020 at 3:00 p.m. in the council chambers at Spearfish City Hall. Chairman Kruskamp called the meeting to order at 3:00 pm. Roll call was taken with the following members present: Toby Bordewyk, Larry Vavruska, Barbara Zwetzig, Greg Kruskamp, Meghan Byrum, and Bob Meyer. Absent: Drew Skjoldal. Also present: City Planner Jayna Watson and Assistant City Planner Daniel Van Holland. APPROVAL OF MINUTES: Meyer moved, Vavruska seconded and all voted to approve the minutes of the March 3rd, 2020 Planning Commission meeting. DECLARATIONS OF CONFLICTS OF INTEREST: Kruskamp called for any potential conflicts of interest to be identified. No conflicts were expressed. 1. Request: Approve a C-1 Redevelopment Incentive Plan Location: 437 Main St. Applicant: Jared Capp Action: Set a public hearing for April 7th, 2020 As applicant Jared Capp was not present, Watson explained the proposal for parking relief under the recently passed C-1 Redevelopment Incentive Plan. Staff found the proposal to be compliant with the requirements of the ordinance. Planning Commission inquired about how many lots were being used, whether sustainability technology was required for this proposal, and if the rental units may be used for permeant dwellings. Vavruska moved, Byrum seconded and all vote to set a public hearing for April 7th, 2020. 2. Request: Approve a variance for parking requirements Location: 118-120 E Jackson Blvd. Applicant: Roger Riley Action: Make a recommendation and set the Board of Adjustment’s public hearing for April 6th, 2020 Applicant Roger Riley explained the proposed use of the property in question, that the building was constructed prior to the implementation of the current zoning code, and how parking can be absorbed by parallel parking spaces on the street adjacent to the property. Watson further explained the history of the building and its previous uses. Planning Commission inquired about any alteration to the building. Bordewyk moved, Byrum seconded and all present voted to recommend and set a Board of Adjustment public hearing for April 6th, 2020. 3. Request: Approve a Tax Increment Finance (TIF) Boundary Location: North 1/2 of Tract V and Tract H both of the Elkhorn Ridge Addition, and the South 17’ of the North 50’ of the NW ¼ of Section 21, Township 6 North, Range 3 East, BHM, Lawrence County, South Dakota and the South 17’ of the North 50’ of the NE ¼ of Section 21, Township 6 North, Range 3 East, BHM, Lawrence County, South Dakota including the East Colorado Boulevard right-of-way Applicant: City of Spearfish Action: Set public hearing for April 7th, 2020  Watson explained that a Tax Increment Financing District will be needed for the Workforce Housing Development and showed the Commissioners the proposed boundary for the district. Planning Commission inquired about a path for non-motorized vehicles for the development. Vavruska moved, Zwetzig seconded and all present voted to set a public hearing for April 6th, 2020. CITY COUNCIL UPDATE: Watson reported on the items that went before the City Council on March 16th, 2020, including the passing of the C-1 Redevelopment Incentive Plan, updates on city facility closures, and how the Commission may handle further restrictions on public facilities and gatherings if the need arises. PUBLIC COMMENT No public comment received. ADJOURNMENT: There being no further business to come before the commission, Kruskamp adjourned the meeting at approximately 3:46 p.m.  Spearfish Planning Commission Staff Report Meeting via Teleconference (see page 5 for instructions on joining) Staff Contact: Jayna Watson, City Planner, 605-717-1122; jayna.watson@cityofspearfish.com Daniel Van Holland, Assistant City Planner, 605-717-1126; daniel.vanholland@cityofspearfish.com MEETING Tuesday, April 7th, 2020 at 3pm DATE AND TIME: APPLICANT: Jared Capp and Dr. Rachel Headley REQUEST: Approve a C-1 Redevelopment Incentive Plan proposal ACTION: Hold a public hearing and make a recommendation to the City Council LOCATION: 437 N Main St SUMMARY: This request will waive 50% of the off-street parking requirement for the property per the C-1 Redevelopment Incentive Plan Page 1 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020 BACKGROUND AND HISTORY: City staff, the Planning Commission and the City Council have worked on, and approved, a plan to provide an incentive for redevelopment in the C-1 Central Commercial zoning district that would waive some of the off-street parking requirements if applicants can show that their project meets criteria that forward the City’s planning goals. The plan is meant to combat blight in the district and spur redevelopment of underutilized properties. Many parcels in the C-1 district are small and meeting off-street parking requirements is difficult, reducing the feasibility of redevelopment projects. PROPOSAL DETAILS: The applicant plans on constructing a mixed-use building with four (4) studio apartments to be used as vacation rentals and 3600 +/- square feet of office space. Using the standard zoning code parking requirements: • Four (4) rental units require 1 parking space per unit • 3600 square feet of office requires 1 parking space per 200 square feet, for a total of 18 parking spaces • The total requirement is 22 parking spaces. Per the C-1 Redevelopment Incentive Plan, upon meeting the mandatory and two optional criteria: • 50% of the parking requirement may be waived and up to 10 on-street spaces may be counted towards the total • All overnight parking must be off-street • This would reduce the requirement to 11 parking spaces (22 x 50%) • This would require 4 off-street parking spaces for the rentals and would allow the remaining 7 parking spaces to be placed along the adjacent street The following criteria guide the decision to approve this project. C-1 Redevelopment Incentive Plan Criteria: 1. For any new or renovated structure, the required parking for non-residential land uses may be reduced under the following criteria. a. Mandatory Criteria: (1) Building design will incorporate features as described in the document titled: City of Spearfish Design Guidelines for the C-1 Redevelopment Incentive Plan. Staff findings: Staff finds that the proposed structure follows complies with • the overall design expectations, • exterior finishes and colors, Page 2 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  • building entries and window arrangement, • variations in exterior wall alignment, • roof forms Please see the attachment on pages 8-9 for the applicant’s narrative for further details. (2) Site structures must have a building permit value that is the greater than or equal to twice the assessed value of the previous year as determined by the last certified value per the Lawrence County Office of Equalization. The permit value will be verified by Building Official or based on building permit information. Staff findings: Current Assessed Value: $92,280 Estimated Building Permit Value: $1,300,000 Estimate confirmed by the Building Official: Proposal meets this criterion. (3) A minimum of fifty percent (50%) of the required parking stalls must be provided either on private property, within the public right of way, or both. Staff findings: The site plan shows 7 spaces provided as curbside parallel parking and 4 spaces on the property, meeting the 11 space requirement. Proposal meets this criterion. (4) A maximum of ten (10) parking spaces are permitted within the right of way adjacent to the applicant’s property frontage either as 90 degree angle or diagonal parking Staff findings: 7 spaces identified as existing curbside parking. Proposal meets this criterion (5) A maximum of ten (10) parallel parking spaces on one side of the street may serve as parking provided for more than one property. Staff findings: Proposal identifies 7 spaces along the adjoining street. Each parking space must be 21 feet long, per code. If 21 feet are provided, proposal meets this criterion. (6) Parking for residential, hotel, motel, bed and breakfast, vacation home rentals, and uses that require overnight parking must be provided on private property. Page 3 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Staff findings: Proposal accounts for all vacation home parking on the premises. Proposal meets this criterion. b. Optional Criteria – In addition to the mandatory criteria above, a minimum of two of the following must be satisfied: (1) Existing sidewalks are widened to a minimum of 8’. Staff findings: Not applicable – applicant not pursuing this criterion (2) New street trees provided at the rate of 1 per 50 feet of site frontage. Staff findings: Not applicable – applicant not pursuing this criterion (3) Provide landscaping per city code. Staff findings: The lot is 6,867 square feet and proposed structure is 3,391 square feet. This leaves 3,476 landscape points needed. Applicant plans to provide: • 2 small trees – 500 points each • 10 shrubs – 250 points each • 5 square yards of live ground cover – 100 points per square yard • Total points – 4,000 Proposal meets this criterion. (4) Utilize ecologically sustainable designs and technologies, which are in line with the goals of the Comprehensive Plan, such as, but not limited to: i. water conservation, energy efficiency, and renewable energy ii. enhanced protection from fire, flood, and other natural disasters Staff findings: Applicant plans on integrating: • Rainwater collection • Onsite stormwater management (conveys • Solar panels on roof for electric production • Solar panels on roof for hot water heating • Enhanced fire proofing through steel roof and stucco finishes • Passive solar design • Recycled materials Proposal meets this criterion. Page 4 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  (5) Other criteria deemed to have a significant public benefit Staff findings: Proposal meets 2 listed optional criteria as is, no need for other criteria. PUBLIC COMMENTS: Owners within 140 feet of the property have been notified of the public hearing via certified mail 10 days before the public hearing. Notice of the public hearing has also been published in the official newspaper 10 days prior to the public hearing. One neighbor expressed concern over parking spillover and traffic control. Applicant addressed the neighbor’s concerns. STAFF RECOMMENDATION: Approve ATTACHMENTS: Page 6 – Current Building Page 7 – Renderings of the Proposed Structure Page 8-9 – Design Guideline Narrative Page 10 – Valuation and Optional Criteria Explanation Page 11-12 – Floor Plans Page 13 - Elevations Page 14 – Landscape Plan Page 15 – Site Plan TELECONFERNECE INSTRUCTIONS: Please join the meeting from your computer, tablet or smartphone. https://global.gotomeeting.com/join/191918269 You can also dial in using your phone. United States: +1 (312) 757-3121 Access Code: 191-918-269 New to GoToMeeting? Get the app now and be ready when your first meeting starts: https://global.gotomeeting.com/install/191918269 Page 5 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Page 6 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Page 7 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020 APPLICANT’S NARRATIVE REGARDING CONFORMANCE TO THE DESIGN GUIDELINES Page 8 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Page 9 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020 The Cobblestone Building 1) Proposed of Value of Construction and Current Valuation. The proposed new construction project for a mixed-use commercial building located at 437 Main St has a construction cost of $1.3 million. The 2019 Lawrence County valuation of the existing building and lot is $92,280. 2) Optional Criteria. The Cobblestone Building will meet the following optional criteria: Landscaping per City Code, Utilize Ecological Sustainable Design and Technology which are in line with the goals of the Comprehensive Plan. Landscaping per City Code. There will be two trees in the front of the building, with dwarf trees, shrubs, and live cover on the east and south side of the building. Lot size: 6,867 ft2 Structure: 3,391 ft2 Points needed: 3,476 Ecological Sustainable Design and Technology: We are using the following elements in the building design: • Rainwater collection • Onsite stormwater management • Solar panels on roof for electric production • Solar panels on roof for hot water heating • Enhanced fire proofing through steel roof and stucco finishes • Passive solar design • Recycled materials Page 10 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Page 11 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Page 12 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Page 13 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Page 14 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Page 15 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Spearfish Planning Commission Staff Report Meeting Location: Meeting via Teleconference (see page 3 for instructions on joining) Jayna Watson, City Planner, 605-717-1122; jayna.watson@cityofspearfish.com Daniel Van Holland, Assistant City Planner, 605-717-1126; daniel.vanholland@cityofspearfish.com MEETING Tuesday, April 7, 2020 DATE AND TIME: APPLICANT: City of Spearfish REQUEST: Approve a Tax Increment Finance (TIF) District Boundary ACTION: Hold a public hearing and make a recommendation to the City Council ZONING: DRD North 1700’ of Tract V and Tract H both of the Elkhorn Ridge Addition, and the LOCATION: South 17’ of the North 50’ of the NW ¼ of Section 21, Township 6 North, Range 3 East, BHM, Lawrence County, South Dakota and the South 17’ of the North 50’ of the NE ¼ of Section 21, Township 6 North, Range 3 East, BHM, Lawrence County, South Dakota including the East Colorado Boulevard right-of-way Interstate 90 Colorado Blvd Approval would allow the city to set the boundaries for TIF #6 and begin calculating SUMMARY: base data and projections for the Workforce Housing project Page 1 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020 BACKGROUND AND HISTORY In 2019, the City Council approved the development of a workforce housing project. Tract V of the Elkhorn Ridge Addition was identified as the location for this development and Dream Design International (DDI) was chosen to construct the homes. Per the city’s agreement with DDI, the city will purchase the property and will finance the construction of public infrastructure. The city plans on using tax increment financing to cover the cost of procurement and improvement of the property. Per SDCL 11-9, municipalities may define the boundaries for geographically contiguous districts whose current assessed value will serve as the base for tax increment financing. PROPOSAL DETAILS Tract V is a 160 acre parcel located immediately south of the Elkhorn Ridge Campground, and a portion of this property will be the site of the workforce housing development and a sports field complex. TIF revenue will be used to pay back the upfront costs the city will incur in the design and construction of streets and utility mains that will serve the neighborhood as well as the construction of sports fields. The Colorado Boulevard right-of-way and adjacent property will also be included in the district. This will allow the city to finance any necessary street and utility improvements leading into the development along Colorado Boulevard Including Tract H, (the location of the recently approved storage units) will allow for appropriations for upgrading the lift station located on that parcel, if needed. Each of these improvements will be necessary for the success of the workforce housing development. STAFF ANALYSIS Approval will allow the City to move forward with the workforce housing development. With the district boundary set, the City can identify the taxable base from which the increment (the property tax revenue) will flow. It will also allow the City to begin planning the construction of the public improvements. The next steps after the boundary is formed will be to approve the final site plan and the project plan which defines the location and type of project costs as well as how the TIF will affect the City, County, and School district in terms of tax revenues. State law requires that the City Council resolution that creates the TIF district boundary must identify that certain conditions exist, according to the definitions in state law. The applicable statutes are attached to this staff report with the primary statutes that apply noted below with staff comments following each. 11-9-8. Required findings in resolution creating district. The resolution required by § 11-9-5 shall contain the following findings: (1) Not less than twenty-five percent, by area, of the real property within the district is a blighted area or not less than fifty percent, by area, of the real property within the district will stimulate and develop the general economic welfare and prosperity of the state through the promotion and advancement of industrial, commercial, manufacturing, agricultural, or natural resources development; and (staff comment: recent legislative action has defined affordable housing to be a key part of economic health in order to support the above industries in the state. See below for what definition of blight is met.) Page 2 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  (2) The improvement of the area is likely to significantly enhance the value of substantially all other real property in the district. (staff comment: the current assessed value of the property is +/- $135,000. The future assessed value when the TIF district is retired and all homes are constructed is likely to be in excess of $30 million. There is an unmet need for housing that is priced at less than $275,000 in the community therefore, this future $30 million valuation is not speculative. It is not necessary to identify the specific parcels meeting the criteria. No county may create a district located, in whole or in part, within a municipality, unless the governing body of the municipality has consented to creation of a district by resolution. The section of statute that is most applicable to the definition of blight is below, followed by staff comments. 11-9-11. Open areas impairing growth defined as blighted. Any area which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of a municipality, is a blighted area. (staff comment: the property is currently open and undeveloped land. The property is platted as one large 160 acre parcel +/- which is not reflective of its actual zoning rights which were granted in 2014 to allow several hundred homes, however no development has taken place to date. A 160 acre open space parcel located within city limits does not contribute to the south growth of a municipality. For example, the city owns and operates the water and sewer system that serves this property but without any homes connected to the system, there are no user fees to pay for the costs of system operation. Once developed, new users of the system are added and thus reduce the overall financial burden to operate the system.) PUBLIC COMMENTS Notice has been sent to all impacted taxing authorities: the County Commission, the School Board, and the Spearfish Rural Fire Protection District and has been published in the official newspaper of the city 10 days prior to the hearing. No objections have been raised. STAFF RECOMMENDATION: Approve ATTACHMENTS: Page 4 – Proposed Tax Increment District 6 boundary Page 5 – DRAFT Site Plan (for purposes of visualizing street locations and sports complex – subject of TIF related improvements) Page 6-7 – State laws pertaining to TIF boundary creation TELECONFERNECE INSTRUCTIONS: Please join the meeting from your computer, tablet or smartphone. https://global.gotomeeting.com/join/191918269 You can also dial in using your phone. United States: +1 (312) 757-3121 Access Code: 191-918-269 New to GoToMeeting? Get the app now and be ready when your first meeting starts: https://global.gotomeeting.com/install/191918269 Page 3 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  Page 4 Location of water and sewer mains to be upgraded with TIF revenue (Colorado Blvd. ROW) Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020 Proposed entrances to development – possible Colorado Blvd improvements at intersection  Page 5 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020 South Dakota Codified Law - TIF statutes related to creation of the TIF boundary. 11-9-8. Required findings in resolution creating district. The resolution [to form a tax increment finance district boundary] required by § 11-9-5 shall contain the following findings: (1) Not less than twenty-five percent, by area, of the real property within the district is a blighted area or not less than fifty percent, by area, of the real property within the district will stimulate and develop the general economic welfare and prosperity of the state through the promotion and advancement of industrial, commercial, manufacturing, agricultural, or natural resources development; and (2) The improvement of the area is likely to significantly enhance the value of substantially all other real property in the district. It is not necessary to identify the specific parcels meeting the criteria. No county may create a district located, in whole or in part, within a municipality, unless the governing body of the municipality has consented to creation of a district by resolution. ****** 11-9-9. Areas conducive to disease or crime defined as blighted. Any area, including slum area, in which the structures, buildings, or improvements, by reason of: (1) Dilapidation, age, or obsolescence; (2) Inadequate provisions for ventilation, light, air, sanitation, or open spaces; (3) High density of population and overcrowding; (4) The existence of conditions which endanger life or property by fire and other causes; or (5) Any combination of such factors; are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and which is detrimental to the public health, safety, morals, or welfare, is a blighted area. ******* 11-9-10. Developed areas impairing growth defined as blighted. Any area which by reason of: (1) The presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures; (2) Predominance of defective or inadequate street layouts; (3) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) Insanitary or unsafe conditions; (5) Deterioration of site or other improvements; Page 6 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020  (6) Diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land; (7) Defective or unusual conditions of title; (8) The existence of conditions which endanger life or property by fire and other causes; or (9) Any combination of such factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, is a blighted area. ******* 11-9-11. Open areas impairing growth defined as blighted. Any area which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of a municipality, is a blighted area. Page 7 Spearfish Planning Commission Staff Report Meeting Date: April 7, 2020