Planning Commission

11/14/2024 - Minutes I. Call to Order Members Present: Mike O’Brien, Chair; Abby Bleything, Vice Chair; Joe Perron; John Baker; Brendan Sage City Staff Present: Ravi Venkataraman, Jazmine Hurley Guests Present: Kristine Lott, Mayor; Carolyn Black Call to Order by: Mike O’Brien Meeting Start Time: 6:31 pm Minutes Recorded by: Ravi Venkataraman II. Changes to the Agenda None III. Public Comment None IV. Approve Previous Meeting Minutes Decision: 3-0 (Two abstained). Motion carried. Motion by: Joe Perron Second: John Baker V. Public Hearing: Proposed amendments to Unified Land Use and Development Regulations (ULUDR) Sections 4.12, and 5.10, and Article VIII (Act 181 Overview and its related required ordinance changes) Motion by Joe Perron, seconded by John Baker to open the public hearing. Voting: unanimous. Motion carried. Ravi Venkataraman provided an overview of the proposed changes to the ULUDR. Motion by Brendan, seconded by John to close the hearing. Voting: unanimous. Motion carried. Motion by Abby, seconded by Brendan to forward changes to council. Voting: unanimous. Motion carried. VI. Discussion: Unified Land Use and Development Regulations (ULUDR) Sections 4.1 and 5.16 (Related to Replacement Units) Venkataraman provided an overview of the changes to the draft regulations since the October Planning Commission meeting. Venkataraman highlighted that the current draft focuses on regulating redevelopment of properties currently hosting three-plus bedroom units, noting that VI. Discussion: Unified Land Use and Development Regulations (ULUDR) Sections 4.1 and 5.16 (Related to Replacement Units) Venkataraman provided an overview of the changes to the draft regulations since the October Planning Commission meeting. Venkataraman highlighted that the current draft focuses on regulating redevelopment of properties currently hosting three-plus bedroom units, noting that based on the current housing stock, regulating current two-bedroom units would be overly restrictive. Joe Perron asked why the current draft does not include two-bedroom units. Venkataraman said that looking at properties discussed during the last meeting that have many two-bedroom units, he and Jazmine Hurley concluded that such regulations would be overly burdensome to certain properties and prevent an updating of the housing stock. Venkataraman added that City Council has prioritized the protection and development of affordable three-bedroom units, and the current draft aligns with City Council’s objective. Hurley further added that larger three-plus bedroom units have been identified as a need by the city’s larger resettled refugee and recent immigrant families. Hurley said that three-bedroom units are likelier to be in rental apartment projects, and that four- and five-bedroom units would only be built under specific circumstances. Hurley said that two-bedroom units are being built by market forces and that they are fairly common, but not at the same scale in the past. Perron asked if the trade-off of potentially losing two-bedroom units for a smaller amount of three-bedroom units are a benefit, and questioned the demand for two-bedroom units. Hurley said that if the market has a demand, market-rate developers will build to demand, that market-rate builders are building two-bedroom units because there is a demand, and that mandating developers to build a number of two-bedroom market-rate units based on existing property conditions would not be sustainable or productive in trying to encourage development. Hurley said that a two-bedroom unit is a different type of unit than a three-plus bedroom unit and typically for a different demographic. Perron voiced concerns over the potential loss of two-bedroom housing over time, which could potentially house families. John Baker suggested setting a limit to how many existing two-bedroom units could be redeveloped on a site. Venkataraman said that the intent of these regulations is to plug a market gap, that two-bedroom units are being built albeit not at the scale as in the past, but that three-bedroom affordable units are not being built even though the community needs these kinds of units. Venkataraman said that the city may be overregulating by requiring the replacement of two-bedroom units, even though there isn’t demand for that many two-bedroom units on the market. Venkataraman said that we will need to figure out the fine line of making sure the community’s needs are met while market-rate housing development continues to occur. Perron questioned how not requiring the replacement of two-bedroom units would be onerous if two-bedroom units are being built. Perron said that even though developing three-bedroom units is challenging, having family-sized two-bedroom units could be a win for the city. Venkataraman said that per the data, the number of two-bedroom units have remained consistent over time but the number of three-bedroom units have been reduced over time. Hurley added that having spoken to a developer recently, the developer said that they have struggled to rent their two- bedroom units recently for the first time in five years, and that the developer’s units are priced at 100% area median income. Hurley said that that developer has said that they don’t see demand in larger three-bedroom units, that typically people will stay in smaller units until they can purchase a larger unit. Hurley said that we shouldn’t be mandating every single part of the market, and that developers will build to the market, to what is profitable and successful for them. Hurley said that the city has a very specific need with the three-plus bedroom affordable units, and that the city should intervene only on this aspect or else regulations would be overly regulatory. Mike O’Brien asked for clarification on the applicability of these draft regulations on properties currently with a large amount of two-bedroom units. Venkataraman said that these regulations would not apply to those properties. Perron questioned the consequences, noting the potential of the loss of two-bedroom units which could be used for families and that if developers are regulatory. Mike O’Brien asked for clarification on the applicability of these draft regulations on properties currently with a large amount of two-bedroom units. Venkataraman said that these regulations would not apply to those properties. Perron questioned the consequences, noting the potential of the loss of two-bedroom units which could be used for families and that if developers are building two-bedroom units then the city could require the replacement of two-bedroom dwellings. Hurley said that on the market-rate side, developers will build to the market, and that with the unpredictability of market demand, developers need the flexibility to build to the market needs or else the city wouldn’t enable a sustainable housing market. Mayor Kristine Lott shared a memo to City Council listing recent projects in the Gateway District and their respective bedroom per unit counts with the commission through the chat function. Venkataraman presented the document to the commission. Mayor Lott and O’Brien said that per the table and what has been built, 20 percent of the units built were two-bedroom units. Hurley added that two of the developers who built the projects with two-bedroom units said that they had vacant two-bedroom units. Abby Bleything said that if the focus is on three-bedroom units, then the loopholes should be closed. Venkataraman explained how applicants can meet the requirements of the draft regulations. O’Brien asked for staff’s concerns about replacing three-bedroom units with affordable two-bedroom units. Hurley said considering the market today, seeing affordable two- bedroom and three-bedroom units being constructed would be preferable than market-rate three-bedroom units. Perron asked how we know market demand if no three-bedroom market rate units are being built. Hurley said that this is based on the challenges developers are facing renting two-bedroom units. Hurley added that we know that the market demand is for studio and one-bedroom units but that the community needs affordable three-plus bedroom units. O’Brien asked if this language does provide an out, considering the objective is to build more affordable three-plus bedroom units. Venkataraman said that the language does provide an out, but considering that the city needs more affordable units in general and that affordable units are harder to build than market-rate units, this flexibility would fulfill a housing gap in the community. Perron questioned the applicability of the regulations and asked why existing two-bedroom units are not being covered in these regulations. Venkataraman said that staff and the commission are aiming to thread the fine line between fulfilling a community need while working with developers to able to redevelop properties and build new housing. Perron asked how many developers and landlords are facing difficulties renting two-bedroom units. Hurley suggested asking developers during the roundtable next week. Brendan Sage said that the commission may be more sensitive to the loss of two-bedroom units because a two-bedroom unit can accommodate a family. Venkataraman acknowledged Sage’s comment, adding that staff has been figuring out how to balance idealism with practicality. Perron asked why two-bedroom units could not be replaced in future projects. Hurley said that we don’t know the market as well as the developers, who base their entire livelihoods on developing to meet the market needs. Hurley said that the affordable three-plus bedroom is a niche housing type and need that the city has to advocate for to see in future developments. Sage asked how the for-sale market is a role in these draft regulations. Venkataraman said that he hasn’t considered homes for sale in these regulations. Hurley said that generally, homes built for sale will be three-plus bedrooms and made for families. Bleything asked what strategies can be done to encourage home ownership. Bleything added that the regulations should require rebuilding of three-plus bedroom units to address housing priorities. Sage said that he thought the replacement unit regulations would address unit size and the inclusionary zoning regulations would address housing affordability. Hurley said that staff does not think those two items should be separate. Sage said that a set amount of two-bedroom units should be replaced. Venkataraman said that all of us will learn more after the conversations at  be done to encourage home ownership. Bleything added that the regulations should require rebuilding of three-plus bedroom units to address housing priorities. Sage said that he thought the replacement unit regulations would address unit size and the inclusionary zoning regulations would address housing affordability. Hurley said that staff does not think those two items should be separate. Sage said that a set amount of two-bedroom units should be replaced. Venkataraman said that all of us will learn more after the conversations at the developers roundtable, that he could look through the data for possibilities, and that he fears creating an artificial glut in the market by creating units that are not demanded. Sage and Perron questioned how many two-bedroom units are actually vacant. Hurley said that one developer she spoke to has lowered rents for two-bedroom units in order to fill units. Bleything said that the commission should consider encouraging three-plus bedroom units in general since as the housing stock ages, these units will become more affordable. Perron suggested that the regulations should cover two-bedroom units in order to provide potential housing for families. Hurley said that the city has not seen significant housing development in more than a year, with exception to two projects—one of which was subsidized. Hurley added that considering the current housing market and financial situation, the city should not be creating regulations that would be overly restrictive that would prevent housing growth even further. Bleything voiced concerns over the flexibility in replacing three-bedroom units with two-bedroom units, and the allowances for payment-in-lieu to be used outside of the Gateway District. O’Brien said that he agreed with staff about too much regulation, that there can be too much regulation, and that the commission does not have control over market forces. Venkataraman said that staff will make adjustments based on the current conversations, and present the draft to the developers for next week’s roundtable. VII. Discussion: Unified Land Use and Development Regulations (ULUDR) Section 4.17 (Transportation Demand Management) Venkataraman overviewed the changes since the October meeting, noting that the major change is removing the limit on how much of a parking reduction an applicant can receive. Venkataraman said that this change is based on research he has read from other cities and he has done on South Burlington, studying how much parking is included in developments that have removed parking requirements. Venkataraman concluded that in places that have removed parking requirements, developers still include parking at a significant level. Venkataraman added that his point isn’t about removing parking requirements, but that reducing parking requirements wouldn’t inherently mean that developers would not include adequate parking in developments. VIII. Discussion and Possible Action: Approve request to provide Green Mountain Transit a letter of support Venkataraman overviewed the reason for this discussion item and the letter of support. Commissioners provided comments on the final paragraph of the draft letter, asking for a more resounding conclusion. Mike suggested minor changes in the draft. The commission came to consensus in support of the letter of support with the edits discussed. IX. City Updates A. Updates from the Mayor Mayor Kristine Lott reviewed the previous City Council meeting and the City Council meeting with the Winooski School Board. Mayor Lott noted that line extensions and modifications are on GMT’s radar, and that it will be looked at TBD. B. Updates from the Inclusion and Belonging Commission  Mayor Kristine Lott reviewed the previous City Council meeting and the City Council meeting with the Winooski School Board. Mayor Lott noted that line extensions and modifications are on GMT’s radar, and that it will be looked at TBD. B. Updates from the Inclusion and Belonging Commission N/A C. Updates from City Staff Venkataraman reviewed the upcoming DRB meeting agenda and developers roundtable agenda. X. Other Business N/A XI. Adjourn Motion by: Brendan Sage Second: Abby Bleything Meeting End Time: 8:23 pm