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HomeMy WebLinkAboutMinutes 10-13-2016 1 APPROVED 12/5/2016 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS CARRBORO BOARD OF ALDERMEN JOINT MEETING October 13, 2016 The Orange County Board of Commissioners met in a joint meeting with the Town of Carrboro Aldermen on Thursday, October 13, 2016 at 7:00 p.m. at the Southern Human Services Center, in Chapel Hill, N.C. COUNTY COMMISSIONERS PRESENT: Chair McKee and Commissioners Mark Dorosin, Mia Burroughs, Barry Jacobs, Bernadette Pelissier and Penny Rich COUNTY COMMISSIONERS ABSENT: Commissioner Price COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager Travis Myren and Clerk to the Board Donna Baker (All other staff members will be identified appropriately below) CARRBORO BOARD OF ALDERMEN MEMBERS PRESENT: Mayor Lydia Lavelle and Aldermen Bethany Chaney, Randee Haven-O'Donnell, Michelle Johnson, Damon Seils, Sammy Slade, Jacquelyn Gist, and David Andrews, Town Manager CARRBORO BOARD OF ALDERMEN MEMBERS ABSENT: Welcome/Introductions and Opening Remarks Chair McKee called the meeting to order at 7:06 p.m. Chair McKee said Commissioner Price would not be able to attend tonight. Chair McKee gave recognition to Orange County Emergency Services for their efforts during Hurricane Matthew. Mayor Lavelle echoed Chair McKee's words. 1. Economic Development a) Development of Old NC Highway 86 Property Owned by the Town of Carrboro for Affordable Commercial Space Carrboro's Planning Director, Trish McGuire, presented this item. She showed a map of the area being discussed this evening, and reviewed the following background information: BACKGROUND: The purpose of this agenda item is to provide an opportunity for the Boards to discuss possible development of Town-owned property located on Old NC Highway 86 for affordable commercial space. Trish McGuire said affordable space for flex warehouse/light manufacturing is very limited in Carrboro; therefore the Carrboro Board of Aldermen directed staff to identify opportunities to lift barriers to developing this type of space. Availability and cost of land are limiting factors affecting commercial development and the town's ability to attract or retain light manufacturing businesses. The Town of Carrboro is seeking input from the Orange County Board of Commissioners on developing a Request for Proposals (RFP) to invite proposals for 2 developing Town-owned property located on Old NC 86 as an affordable, light manufacturing commercial park. Trish McGuire said the property, located across from the Twin Creeks park property, was originally purchased by the town in 2001 to be used for a new public works facility. In response to the Board of Aldermen's interest in expanding opportunities for flex/light manufacturing commercial space, staff has begun studying the property for this alternative use. Preliminary study reveals a building program of approximately 90,000 square feet of warehouse/flex commercial space is possible. The site plan illustrates four (4) 20,000 square feet buildings and the possibility of two or more, smaller 5,000 to 10,000 sq. ft. building footprints. The improvements would be taxable assets with an estimated tax value of$9,000,000, which would result in approximately $79,020 in annual County property tax revenues, $18,756 for the Chapel Hill/Carrboro City School district and $53,046 in town revenues upon annexation into the Town limits. The Town is seeking input from the BOCC on development parameters that can be included in a Request for Proposals (RFP). This input will be included in the development of site design criteria and building design elements, required square footage, ownership and leasing terms, including rent controls and other provisions. Trish McGuire said the process for gathering input from neighboring property owners is in preparation. The 22 acre parcel is currently zoned RR, Rural Residential, and would need to be rezoned for low impact commercial uses that generate little or no customer trips. The concept is for the town to retain ownership and lease the land to a developer who would construct the project and lease the buildings for a defined period (e.g. 2 to 30 years). The primary goal is to keep the project affordable and therefore capable of attracting and retaining local manufacturers, service providers, craftspeople and artisans. She said other elements to be included in an RFP would focus on preserving the feel and character of the property with careful thought be given to the aesthetic and the rural nature of the area. Buildings should have a rural character as illustrated in Attachment 1 a-2. The existing house on the front of the property could be preserved and used as a small retail location, to provide employees and local residents with basic staple groceries and some prepared food. As envisioned, the project would require public water and sewer which are available south of this property near Lake Hogan Farms, and a turning lane to accommodate turning traffic which should include employees, services vehicles, and delivery trucks only. The preliminary estimated cost of these improvements is $1,000,000. This cost may be an opportunity for an Orange County—Town of Carrboro collaboration on an economic development initiative. Orange County's role in this proposal would be related to the Joint Planning Area Agreement which includes a review and approval mechanism for a change in zoning. In addition, the Northern Transition Advisory Board would review the proposal. The County would also be responsible for considering a request from the town to partner on utility extensions and infrastructure improvements. Mayor Lavelle said this agenda item, and the next, are efforts by the Town to retain these types of commercial sites outside of the Town limits, as they are priced out of being within the Town limits. 3 Alderman Gist said the abstract does not mention social justice impacts, but they do exist with this proposed project. She said the new buildings in downtown Carrboro are too expensive for the locals to purchase or lease, and this site provides affordable small business space. Alderman Slade echoed Alderman Gist's sentiments. He said this project also serves as a counterpoint to how economic development has always been done, and this is a way to support home grown, locally owned businesses, as opposed to bigger or national businesses. He encouraged the County to help support this type of economic development. Alderman Haven O'Donnell said she agreed with both Aldermen. She said Carrboro has always been a service-oriented economy. She said locals have to flee to outside areas, because they cannot afford downtown Carrboro. Commissioner Dorosin said this is an exciting proposal. Commissioner Dorosin referred to the map at the Commissioners' places, and said there is water and sewer going north of this site. He asked if it is known how far these lines go. Trish McGuire said the water line goes to Hillsborough, and the sewer line goes up to Morris Grove Elementary School. Commissioner Dorosin referred to the proposed commercial park, which would be home to businesses with little traffic, other than employees. He said Old Highway 86 has traffic anyway, and he would not feel as constrained with expanding economic development in this area, as he might in others. Commissioner Dorosin referred to the house in the area, which is intended for preservation, and asked if the condition of it is known. Trish McGuire said it is still in good enough condition that it could be renovated, but it has not been occupied for a number of years. Alderman Seils said there are other things occurring in that general area that is allowing for some commercial development. He asked if Trish McGuire could explain what kind of re- zoning would have been required if a public works facility had been pursued on this property. Trish McGuire said public works is a Town owned and operated facility, and is a permissible use in the RR zoning district. She said she is fairly certain this would not require any rezoning. Alderman Seils asked if rezoning would be required for something like the proposed commercial park. Trish McGuire said one of the zoning districts that was created for the northern study area plan implementation is an office assembly zoning district. She said up to 10% could be retail, but it is intended as a light manufacturing and office type of use. Commissioner Rich asked if this piece of property is now part of Carrboro, or does it have to be annexed. Trish McGuire said it is not in the Town limits at the present time, but it is in the Town's planning jurisdiction and the Town would expect annexation. Commissioner Pelissier asked if details have been fleshed out as to how to make, and keep, this flex space affordable. Trish McGuire said this information can be provided to the Board. Commissioner Pelissier asked if the types of light manufacturing that would be allowed there have been discussed. Mayor Lavelle said a general discussion has occurred. She said an artisan component has been suggested for this project as well. She said this will be fleshed out with the RFP. Commissioner Jacobs said he applauded this idea, but he has some concerns regarding land use and cost benefit. He said a long-range plan for this area has not been 4 presented. He said the described proposal may not warrant water and sewer, and spending $1 million of County funds to provide it to this project may not be necessary. He said if water and sewer were to be provided, it would open the gates to all kinds of other development. He would like to know the land use plan before he endorsed this project, and he would like Orange County Economic Development Director Steve Brantley to do a cost benefit analysis. He suggested that well and septic be considered before spending $1 million. Alderman Chaney said Commissioner Jacobs' concerns are reasonable and should be discussed. She said when an RFP is developed, the amount of water needed can be determined. She said this is an opportunity for the Town and the County to collaborate. She said collective local food strategies could be considered for a collaborative effort, such as additional cold storage or food hub, commercial kitchens, etc. She said there are also cooperative opportunities such as the woodworkers or metal workers of Orange County. Commissioner Jacobs seconded Alderman Chaney's comments. He said the next agenda item is a collaborative effort for three governmental entities. He suggested another possibility for this area could be modalities. Commissioner Jacobs said there is a huge demand for flex space in Orange County, and he applauded the Town for bringing this forth. He asked if a bit more work could be done together before this goes to an RFP. He would like to see how this fits into long range planning and consider the alternatives for waste water and water, as well as costs, etc. Commissioner Rich said she would like to visit this property site and would also like a map of the zoning in this area. Alderman Gist said she understands wanting to consider well and septic, but she is skeptical about looking at a long-range plan, since it would delay the process. She said a small area plan already exists. She said the Town wants to make sure this project does not negatively impact this area. Commissioner Jacobs said he was not proposing a new plan, but wanted to see the plan that currently exists. He said the aspect of water and sewer has a huge impact on other parcels, and if it was not needed, then this area would not blow up as much with development. Alderman Seils asked if staff could provide the Board of County Commissioners with the Northern Study Area Small Area Plan and the Joint Planning Area Land Use Plan, pointing out the sections of that plan that would speak to this kind of development, as well as the surrounding land uses. Mayor Lavelle said in lieu of an organized field trip, if anyone wanted to see the land, just call her up and she will show them around. Commissioner Burroughs asked if anyone could explain the small area plan tonight. Commissioner Dorosin said he is reluctant to put everything to a cost benefit analysis. He does want to look at the overall costs, but many benefits are not quantifiable. Alderman Slade said he agreed with Commissioner Dorosin. He said, beyond the plan for that area, the Town also has a plan to support locally owned businesses, which can be more economically beneficial simply because they are local. Chair McKee asked if rent control can be defined as relates to affordability. Alderman Gist said the Town is not talking about what Chair McKee may fear. He said the Town owns the land, which allows costs to be kept down. She said the Town wants the savings passed on to the businesses, much like the Community Home Trust model. Alderman Chaney said this rent control concept does need to be defined. Chair McKee said when rent control is mentioned the New York City example immediately comes to mind. He said he hopes there will be opportunities in the future to incentivize businesses, and definitions will be important. 5 Trish McGuire pulled up a map of the northern part of Carrboro's jurisdiction. She said there is a small area planning document that applies to this area. She described the surrounding area and land use plan. Commissioner Jacobs asked if the relationship between Transition areas 1 and 2 could be explained. Trish McGuire said the rezoning of area 2 is not to occur until transition area 1 has reached 75% build out, per a number of criteria, which are spelled out in the plan. Commissioner Jacobs asked if Trish McGuire could identify where in that process the areas currently stand. Trish McGuire said these calculations are being worked on currently. Chair McKee said this is an interesting idea, and he likes the focus on local businesses. He said he does not need specific answers tonight, but he does have some concerns. He asked if the 90,000 square foot building is the maximum foot print build for this property. Trish McGuire said that is the maximum for a single level building, with the possibility of a bit more space through a mezzanine level, or something similar. Chair McKee said if a commercial site is going to be built here, he would like it to be the maximum size. Chair McKee asked if the proposal is to build a shell to rent, which would be outfitted by the renter to suit their needs; or is the proposal to build out to the maximum level. He said a building shell would only cost around $100,000, and even with five buildings the total would be far less than $9 million. Trish McGuire said the concept was that the development would be done by a private entity instead of the Town, but she would check on this. Chair McKee said the land would remain in the ownership of the Town, which would provide no tax benefit at all. He said the buildings would be a leasehold improvement to the land, and he read a 30-year term is proposed for the lease. He said he would like to know what would happen after the 30-year lease. He said he keeps coming back to the revenues, as they may have to defend the use of economic development monies for this on Highway 86. He agreed with Commissioner Jacobs about the use of water and sewer, and the development it may open up. Commissioner Jacobs agreed with Chair McKee, and that is why he keeps saying to do a cost analysis of this proposal to determine if this is a wise investment. Commissioner Jacobs suggested not calling this an industrial park, to make it more user-friendly for this community. Commissioner Rich said having a copy of the Northern Transition Area (NTA) plan would help all of them to understand this area. Alderman Gist said she went to Boulder, CO several years ago, and while there were lovely amenities, there was no middle class present. She said Carrboro and the County are being gentrified in the same way, and this is a chance to provide real living wages and space for those who make a living with their hands. Chair McKee said there was still no middle class in Boulder on their recent trip there. Chair McKee said the County's zoning regulations have a great, but limiting, benefit. Alderman Chaney said she is not opposed to the cost benefit analysis, but she is opposed to doing it based only on current assumptions. She said it is useful in understanding potential dynamics, and in creating a plan, but may cause potential benefits of the project to be missed if such an analysis were to be weighed too heavily. She said it is a tool, but not an up or down decision-making tool. b) NC Highway 54 West— Commercial Potential and Challenges 6 The purpose of this agenda item is to provide an opportunity for the Board of Aldermen and the Board of County Commissioners to discuss the Town's interest in extending its extraterritorial jurisdiction to encompass the entirety of five lots along NC Highway 54 West, the jurisdiction and zoning of which are currently split between the Town and County. Trish McGuire presented several maps via PowerPoint. She reviewed the following information: Carrboro town staff along with County staff have been studying opportunities for development in the NC Hwy 54 West corridor within Carrboro's extraterritorial jurisdiction (ETJ) since this is one of the few areas in or near the Town that are zoned for light manufacturing. Most of the properties on the north side of Hwy 54 are split by Town and County jurisdictional boundaries. Real estate professionals have indicated that this can be a barrier to development by potential buyers of commercial properties. The zoning of these parcels is also split with the portions in Carrboro's ETJ zoned Watershed Manufacturing (WM-3) and the portions in County jurisdiction zoned Rural Buffer (RB). With such disparate zoning and the associated limitations on impervious surface area in the University Lake watershed, the development potential of these parcels is limited. Most of the neighboring parcels split by the jurisdictional boundary in this area are zoned RB and WR (Watershed Residential), zoning which mostly allows the same type and amount of development activity to occur in either jurisdiction. Currently on these five properties, all aspects of a commercial, manufacturing development have to be contained on the portion of the parcel that lies within Carrboro's ETJ —about half of each lot. The Town has received several inquiries about redevelopment opportunities for one of the parcels. Another property owner has discussed with staff challenges associated with the conditions described above. The complications associated with the split jurisdiction and zoning have apparently proved to be a deterrent to the submittal of formal applications. The Board of Aldermen has discussed the benefits of uniform jurisdiction and zoning for these parcels, which could be achieved by an extension of the Town's ETJ to cover the parcels in full or by encouraging owners to request voluntary annexation into the Town limits and is seeking the Board of County Commissioners' perspective. Information letters have been sent to the affected property owners regarding possible extension of the Town's ETJ. The initial feedback from property owners is they would like to see an expansion of existing uses that are allowed in the town's WM3 zoning district. Town staff will be reviewing this for a possible land use ordinance amendment. Expansion of the town's ETJ will require approval from the County Board of Commissioners. The state statutes describe the procedural requirements that apply to the County and municipal governments. These requirements are summarized below, with notes indicating which party has responsibility for the action: 1. Extraterritorial area must be set by an ordinance adopted by the city governing board. Newspaper notice, mailed notice and public hearing requirements apply (Town). 2. Approval of a request for the extension into any area where the county is enforcing zoning, subdivision regulations, and the building code (County and Town). 7 3. Approvals, requests or agreements must be established by a formally adopted resolution of the governing board (County and Town). 4. Adopted boundary map must be recorded with the register of deeds and the map maintained permanently in the office of the city clerk (County and Town). 5. New zoning designation(s) must be applied to ETJ (Town) following procedures for zoning amendments. The statues provide for a sixty-day transition period, during which prior county zoning remains in place and enforceable. 6. Membership of planning board and board of adjustment must include ETJ representation (Town). Appointments to ETJ seats on municipal boards are made by the board of county commissioners. No specific requirements or standards for county approval or disapproval are included, other than the need for County approval to be secured at any time before the effective date of adoption or amendment of the extraterritorial ordinance. The Board of County Commissioners held a work session in November 2014 to consider establishing a process for reviewing ETJ extension requests. The most recent release/expansion of extraterritorial jurisdiction occurred in December 2014 when the Board of County Commissioners approved a request from the Town of Chapel Hill to exercise ETJ authority over 1,033 acres in and around the Rogers Road area of what was formerly Joint Planning Transition Area. Courtesy review by the Orange County Planning Board did occur in conjunction with that request and approval. Orange County's role would relate to: 1. Expansion of ETJ 2. Amendment to JPA Rural Land Use Classification Boundary Although estimates are difficult without knowledge of specific supply, demand, needs of the business, one could project the need for water storage capacity and pressure to support sprinkler systems for many non-residential uses. This could entail a water study to determine if public or private systems are better suited for fire suppression. Accordingly cost estimates vary widely from $300,000 to amounts more conservative. From a public sewer perspective, again depending on the relative water and sewer needs, analysis for the existing sewer system including the sewage lift station would have to be conducted. These properties could possibly flow by gravity if a jack and bore sewer line was installed under Highway 54. The partial cost of this sewer extension would approximate $125,000. Additional cost would also be anticipated regarding the existing lift station operation. Commissioner Dorosin asked if there is a reason why zoning lines were drawn down these properties, thus splitting them. He said this should be fixed. Trish McGuire said this was done prior to 1966. Mayor Lavelle asked if there are any comments. Alderman Slade agreed with Commissioner Dorosin about possibly changing the zoning. Mayor Lavelle asked if any of the feedback from property owners warranted sharing. Trish McGuire said the main take away is to look at tweaking the zoning to allow more uses. Alderman Seils said that suggestion from the property owners is a separate question than the question before them of reconciling the boundaries. 8 Commissioner Jacobs said if the property owners agree, then rectify the issue. Alderman Chaney said it would be better to fix problems wholesale rather than piecemeal. She said more opportunity is created, and cost reduced to the owners, if this is fixed. Mayor Lavelle said there are five properties on one side of Highway 54 and asked how big the project would be if both sides of Highway 54 were rectified. Trish McGuire said maybe 30 properties. Chair McKee said if five properties are going to be addressed, then the whole area should be addressed at the same time. Damon Seils said he would not want the goal of fixing the whole pie to slow down the immediate need of fixing the five specific properties. Alderman Chaney asked if it is that much more complicated to look at the whole area. Trish McGuire said it is just a matter of finding all the areas that have split zoning, and it should not be terribly cumbersome. Mayor Lavelle said she does not want to do anything to delay the five properties, but it makes sense to take care of the entire area. She said if staff can do it via a phasing process, this would be acceptable, as long as the issue does not get bogged down. Mayor Lavelle said Carrboro staff will communicate with Orange County staff to look at timeline options, and to do it as expeditiously as possible. Alderman Gist asked if there are any unintended consequences of moving from one zone to another. Alderman Seils said affected residents would get a letter that explains the planning jurisdiction changes, and the tax jurisdiction would not change. Trish McGuire said there would be some decision points to address by staff before notifying residents. Craig Benedict, Orange County Planning Director, said the focus should be on the commercial node area at this time, and results for the other areas can be achieved later. Trish McGuire said a point of difference between the two jurisdictions is the issue of voting representation among ETJ members. Chair McKee said to focus on the five properties first, with the intent to look at the other properties and corridor in the second phase. Commissioner Dorosin said the whole corridor should be done at one time. Alderman Seils said staff needs to determine how complex it is to do it all at once. He said if it is straightforward, then it should be done at the same time. 2. Greene Tract— Current Situation and Future Uses Craig Benedict showed a context map via a PowerPoint presentation, and reviewed the following information: The Greene Tract (164 acres) was acquired in 1984 for $608,000 and came to Orange County as an asset in the Solid Waste Fund. The 1998 Interlocal Solid Waste Agreement and amended April 12, 2000 provided for the three owning partners to determine, over a two-year period, the ultimate disposition of the remaining 104 jointly held acres. The Agreement further included a repayment mechanism to the Solid Waste Enterprise Fund. The financial reimbursement to the Solid Was Fund began on July 1, 2008. This link— http://server3.co.orange.nc.us:8088/WebLink8/DocView.aspx?id=27031&dbid=0 9 — provides a history of the Greene Tract from 1999 through 2008 which is a compendium of various reports and studies which was presented at a `Joint Greene Tract Work Session' on April 29, 2008 and at an Assembly of Governments meeting on December 6, 2012. Attachment 2a provides information regarding the last action taken by the Board of County Commissioners (BOCC) on December 10, 2002. Although there has been considerable discussion about the future of the Greene Tract, no action has been taken by the BOCC since 2002. Although not specific to the Greene Tract, multiple Historic Rogers Road Area (HRRA) small area studies and planning efforts have been conducted by the local governments over the last 15 years. More recently, the HRRA staff workgroup has been reviewing and developing two new initiatives: 1) The Community First planning program (Rogers Road Eubanks Neighborhood Association (RENA) and the Jackson Center) hired by the joint governments. 2) Multi-Jurisdiction Technical Environmental Scan of the Greene Tract. All aspects are being researched and updated and maybe ready for a joint meeting in the fall. Over the years there have been many options (based on various studies) discussed as a possible future use of the 104 acres jointly owned by Orange County, Chapel Hill and Carrboro. Listed below are the options that have been explored: 1) Joint Affordable Housing could be planned for 18.1 acres and the remaining 85.9 acres would remain join open space. 2) The 104 acre tract should remain as open space to be protected by conservation easements. 3) The acreage for affordable housing could be placed in the Land Trust. 4) Chapel Hill Carrboro City Schools requested that part of the Greene Tract be reserved for a future elementary school site. An approximate 11-acre area south of the 18 Affordable Housing site was considered. 5) Rename the property to recognize the headwaters of Bolin Creek, Booker Creek and Old Field Creek. As a result of the Inter Local Agreement, 60 acres of the Greene Tract was conveyed to Orange County for "Solid Waste management purposes". Utility design and extension to the Rogers Road area is in progress. Commissioner Jacobs said the plan for the 60 acres is to leave it as undisturbed natural habitat with low intensity recreation purposes. Alderman Seils asked if this decision will be made formal. Chair McKee said the County would like to move toward a formal agreement with the Towns of Chapel Hill and Carrboro regarding what will happen with the Greene Tract, and whether the Towns will retain ownership or wish the County to take over ownership. Alderman Seils asked if a formal decision will be announced about the 60 acres. Chair McKee said there is no timeframe, but the unofficial intent is for the 60 acres to remain as open space. Bonnie Hammersley said this item will be on the Board of County Commissioners' agenda on October 18th Chair McKee said in regards to the rest of the land, the County would like to have a discussion with both Towns as to what will be done with the 104 acres. Alderman Chaney asked if the location of the closest grocery store is known. Mayor Lavelle said five miles. 10 Alderman Chaney said if affordable housing, financed through low income housing tax credits, is to be built on this site, there must be a grocery store within a mile. She said doing the circuit riding from stakeholder to stakeholder, to find options for the site, is ineffective, and a master plan is needed for this site. She said she saw what can be achieved during the inter-city visit to Boulder. She said it took 10 years, but the City worked with all stakeholders to get it done. She said the property must be maximized to benefit the County as a whole. Commissioner Jacobs said he thought staff was directed, at a previous Assembly of Governments (AOG) meeting, to do a draft master plan of mixed used development on this site, so the elected officials could react to. He thought staff was working on it. Craig Benedict said that was the directive, and the Jackson Center drafted a plan, which staff is currently reviewing and discussing with the Center. He said it is hoped that this plan will be available in November at the AOG. Mayor Lavelle said her board often talks about the Greene Tract in reference to affordable housing, food shopping, etc. She said it must be determined which jurisdiction will take the lead in this process. Chair McKee said he fears that this conversation will be never ending, and decisions need to be made collaboratively with one entity taking this project and running with it. He said this needs to be a mixed use and mixed revenue community. Mayor Lavelle said this will be brought up at the AOG in November. Alderman Slade said the community first process should be honored. Alderman Seils agreed with Alderman Slade. He said if processes are not considered about how to make decisions, then wheels will just keep spinning. Chair McKee agreed and said the process needs to be defined and how they will get there. He said all entities can be involved, but only one entity should take the lead. Alderman Seils said the Carrboro Board needs to have a discussion amongst them selves about how Carrboro wants to be involved. Commissioner Burroughs said it is important to know who the partners are before any decisions are made. 3. Information Items (Written Updates - Not for Specific Discussion) a) Rogers Road Infrastructure Update b) Rogers Road: Mapping Our Community's Future c) Southern Library Update The meeting adjourned at 9:10 p.m. Earl McKee, Chair Donna Baker Clerk to the Board