ED & Planning Committee Meeting Summary for August 19, 2009 Page 1 COMMITTEE AGENDA TOPICS I. Subject: Action: Carolina Theatre Staff has met with all parties and will report on the status of the easement to the Committee and request action. II. Subject: Greenway Business Center Grant Request from Charlotte Mecklenburg Development Corporation On July 24th, the City Manager referred this item to the ED & Planning committee to make a recommendation to City Council on the Charlotte Mecklenburg Development Corporation’s request for a $500,000 grant to complete rehabilitation of two vacant buildings at the Greenway Business Center. Action: III. Subject: Action: Special Needs Usage in I-1 Districts At the July 20th Zoning Meeting, Councilmember Barnes requested that the ED & Planning Committee review the Text Amendment and which Amendments allow for special needs housing in I-1 Districts. Staff will present background information to the Committee on location for special needs housing. IV. Subject: Action: Small Business Assistance Provide response to Committee’s request from the Small Business Resource Event for information on small business assistance. IV. Subject: Next Meeting Date The next meeting date is scheduled for September 2, 2009 at 12 Noon. COMMITTEE INFORMATION Present: Absent: Time: Council members John Lassiter, Nancy Carter, Patsy Kinsey and James Mitchell Anthony Foxx 3:30 – 5:07pm. ATTACHMENTS 1. 2. 3. 4. PowerPoint presentation: Carolina Theatre Update PowerPoint presentation: Greenway Business Center PowerPoint presentation: Special Needs Housing Handout: Small Business Resources DISCUSSION HIGHLIGHTS I. Subject: Carolina Theatre John Lassiter, Chair: We have four items on our agenda; the first is an update on the Carolina Theatre with a couple of decision points relative to our current options. Zeiler: As you recall in May and June of this year, we came before this Committee and brought you up to date on the financing and progress of the Carolina Theatre project. Then in June this Committee recommended extending the option at no cost until December 1st, 2011. That was on June 15th on June 16th we got a hurried call from ED & Planning Committee Meeting Summary for August 19, 2009 Page 2 Lassiter: Motion: Vote Lassiter: Bank of America regarding the fire easement from the Montaldo’s building. In the final Council meeting in June you approved a temporary 60 day extension to work through those issues. In July we came back and briefed you on what those specific issues were and what the next steps are. In order for the Carolina Theatre and CMP to get drawings and understand how they could reconfigure, keeping the existing temporary easement, turning it into a permanent easement, would run about $150,000 dollars. That is just for the drawings, Bank of America has refined the design option for the fire egress, the cost will run $250,000 to $280,000 dollars at the time the up-fit is done along with the Montaldo’s build out for the Foundation for the Carolinas. The next step is for Bank of America and Lincoln Harris to conduct a full fire egress survey for the building and verify that this plan actually meets County requirements and to understand whether that front little bit of the easement that is closest to Tryon Street is still needed for fire egress for the front half of the building. At this point we feel we can go ahead and sign the option extension as recommended by this Committee and not impact our property negatively or impact the property around Montaldo’s negatively nor create situations that we cannot get ourselves out of easily. Just to refresh your memory, this would be the general route from Montaldo’s, exiting out to the Hearst Plaza. There may be in the future, depending on the outcome of the fire survey, a need for a small permanent easement yet to be defined near the front. This would not interfere with the construction or plans for the Carolina Theatre. The folks at the Carolina Theatre have said they would be happy to work with us on that easement. So today we would like reaffirmation of this recommendation that we can take to Council for the meeting next Monday. We may need to come back to you in the future to discuss that small permanent easement. So all we have done is to make sure legally we have what we need; this is a reaffirmation. Reaffirm our previous decision; the motion has been seconded by Carter. All in favor say aye. To reaffirm the Committee’s recommendation to Council made on June 15th to extend the option on the Carolina Theatre until December 1st, 2011 and direct staff to include a negotiated property maintenance agreement between CMP Carolina Theatre Corporation and the City. Lassiter: Carter: Kinsey: Foxx: Mitchell: Yes Yes Yes Absent for vote Absent for vote Great, thank you. II. Subject: Greenway Business Center Grant Request from Charlotte Mecklenburg Development Corporation Lassiter: The second item is a presentation relative to a grant request from the Charlotte Mecklenburg Development Corporation that relates to the Greenway Business Center located on Rozzelles Ferry Road. Bob Sweeney is here as a resource, he may want to make some comments as we get into this presentation. We thought a good place to begin this conversation is to remind you of the success we had on Wilkinson Boulevard working with the CMDC and the County to build out what was 32 acres of run down property into the Wilkinson Business Park. It was construction beginning in 2003 and completed with the area occupied by a restaurant supplier. The increase in the tax base was about $12 million and about another 240 permanent jobs created out there. So this is what we accomplished last time, the Flynn: ED & Planning Committee Meeting Summary for August 19, 2009 Page 3 Kinsey: Flynn: Kinsey: Flynn: Carter: Flynn: Carter: Flynn: Carter: Flynn: Carter: Flynn: Carter: Flynn: Lassiter: Flynn: Greenway Business Park is just on a smaller scale. The same type of light industrial, once again just on a smaller scale. It is located in one of our targeted business corridors right on Rozzelles Ferry Road, near the Smallwood and Lakewood neighborhoods; very close to Johnson C. Smith. So this alot of what we have been trying to do with collaboration of Economic Development radiating out into our neighborhoods. This is the site plan for the park, it is divided up into a number of parcels including a greenway that runs along the right hand side of the park. A lot of this area here is not usable due to flood plain; the County will take that and incorporate that into their greenway park. What creek is that? That is Stewart Creek. Stewart? Thank you. CMDC developed this in the summer of 2008. They have completed all of the infrastructure improvements; including the site work, roads, water detention and landscaping. The City and County have both invested about $950,000 dollars into the park; the County committed and additional $835,000 for park improvements related to the greenway, this commitment is pending. They have not been able to fund that due to their bonding issue; but that is a commitment that they have made to the park. CMDC has rehabbed one of the three existing buildings on site. Do they have any projection as to when they can meet this commitment? No not at this point. There is no sense of priority of projects before them now? No, not at this point. We have talked to Jim Garges and the County Manager’s Office. They have not been able to say with definition when it would be final. Does that include the entire amount from the County or just that additional? They have already done the $950,000 it’s the $835,000 that has to do with the greenway. How does that impact this proposed construction? It does not. The business park has already been built so what they would be doing is making improvements along the creek and the path. So it’s not an eye sore or public nuisance? No. It looks amazingly like that. It is big with trees. It’s laid out well, the road network is not all paved; very attractive with an urban feel. These buildings CMDC has also purchased, these three, they have rehabbed the center one shown here. That one is also occupied by the BRIDGE Jobs Program. We will show you some pictures of what has been done on that building. What they are asking for is City money to do the restoration on the other buildings. The pictures show a striking difference. CMDC rehabbed the 5,860 square foot building and finished the rehabilitation on time and under budget. The BRIDGE Jobs Program, a non-profit, has signed a lease for half of the redeveloped building and is currently occupying the space. CMDC is requesting $500,000 to be used to offset construction costs to rehab the remaining two vacant buildings. CMDC owns the buildings and they are ready to move forward. They think they can be underway with this renovation by the end of the year. Basically this is a straight up project and we will show you the numbers shortly as to why this doesn’t work but for City assistance. As you look at this as standard commercial property it does not cash flow and it does not provide any returns. This is the first building the one on the far right with the renderings as to what this building might look like after the renovation. This is a rendering of the Theatre building up here. We think this will add some character, renovating older buildings does add a certain character. In terms of why staff is recommending this is that it really does support our redevelopment of our priority business corridor. It is also adjacent to three of our target neighborhoods. It certainly improves the marketability of the Greenway Business Center by renovating some unsightly buildings turning them into some real landmark buildings in terms of historic preservation. There is a current market opportunity for lease space. Because of the way the market ED & Planning Committee Meeting Summary for August 19, 2009 Page 4 Lassiter: Flynn: Lassiter: Sweeney: Lassiter: Sweeney: Flynn: Carter: Flynn: Lassiter: Sweeney: Carter: Flynn: Carter: Flynn: Kinsey: Sweeney: Kinsey: is now there are lots of requests for leased space that they do not have to buy into. We also think it is possible to have some neighborhood-serving retail here including a restaurant. The costs would run about $120 to $125 per square foot less than what new construction would be. These buildings are in pretty bad shape. They are going to take all new plumbing and HVAC. Also there is no asphalt or water or parking, they are really reconstructing these buildings from the ground up. This is the Greenway proforma with City funds. As you can see, the total cost of construction is about $1.7 million dollars. City funding at $500,000, CMDC would put in their equity of $500,000 and conventional debt at about $731,471. They would not pay interest on this loan. They would pay off the loan through other proceeds when they sell the land to the park, as well as use some extra money here to pay off the loan. That gives a return on equity of less than 5%. You have conventional debt of about $1.2 million dollars which is about 71% loan to value and there is not that type of financing available right now. Those are the addresses and those are projected revenues? Yes. That is based upon what kind of tenant? The building on the far right would be more conventional office space. The other building would be renovated to a “vanilla” shell with the idea that it would be available for different types of interests. For example, a restaurant, the tenant would furnish the fixtures over and above what we did. All improvements would be included in the $500,000? Yes. So you can see a conventionally financed project doesn’t work here, it comes up negative. So there is still a “but for” City assistance to make this work. They are already requesting $500,000 in City Grant Funds and we are recommending approval of that funding under the Business Corridor Funding, which currently has a balance of $7 million dollars uncommitted. At the sale of the property is there any flow back to the City for those grants? CMDC would like to keep these as rental properties and use that to fund the operation. So under this scenario there would be no money coming back to the City. I think there is some expectation of resale of the other parcel to create positive cash flow; it’s a long term of expectation of how the dollars are recouped. The other thing to think about too is no one ever makes a profit from this, the CMDC. Everything that we get goes into the next deal and every deal we do is the same. If we have $500,000 at the end of the day it would go into the next deal. What happened here that was different from Wilkinson was that we sold land very easily at roughly no cost in the back of the park. Here the market had changed; initially what we tried to do was to bulldoze these buildings. The land acquisition had really dried up and we wanted to keep it going so the idea would be to get them to a vanilla shell. We have various interests in that including a restaurant which would work quite well there. That would give positive cash flow on the operations of CMDC; for some reason we sold them to pay off the conventional debt and the land sale would pay off the debt too. Can we make sure that this investment by the City contributes to the historical knowledge of the group that there is $500,000 of the City embedded in this? Yes. Historically carried along and reported out when this subject is approached. Yes. I just want to make sure I understand. You are just taking these buildings down to the shell, there is no restoration? When these buildings are finished they are not going to look like they do now? When the buildings are finished they will be finished. For example, the theater will have new windows and new roof new everything. There is no historic value there? I just want to make sure that I understand, there was some comment about saving the building. ED & Planning Committee Meeting Summary for August 19, 2009 Page 5 Sweeney: Kinsey: Sweeney: Kinsey: Sweeney: Kinsey: Lassiter: Kinsey: Sweeney: Lassiter: Kimble: Lassiter: When you look at the building to the right was a candy factory the building to the left was an old theater. The façade will be brought back to the way it was. That’s what I want to understand, you said you were making it a vanilla shell. The interior will be a vanilla shell, for instance if you took this room, it would look like this room with the ceiling walls and windows but with no carpet, vanilla built for a tenant. What has already been done is very nice, but I guess the theater is the one that I would be interested in, maintaining some historic value. Yes it will look like it did yesterday, the façade will be restored. Yes, I think that is great. I have been in the space that BRIDGES is leasing and it’s got a utilitarian quality. There is a finished concrete floors nothing unique about the sheetrock walls, but for them it’s a house because they were in borrowed space. They have programs that provide t.v. all during the day for students that want to get into the workforce. They are just ecstatic because it works for their classroom space and individual learning. I know these are just drawings, but the façade of the building has been changed in the suggested drawings so if you are going to maintain the historic façade of the building, you don’t want the curve. We are going to keep that front. I don’t think we need to make a decision today this was just for information. We may want to have the other two members here at our next meeting. I think it would be good in the interim to circulate to Mr. Mitchell and Mr. Foxx a little bit of proforma. Mr. Foxx is on the CMDC Board as a representative along with Mr. Peacock and make sure everyone is comfortable. The real question for me is by putting this $500,000 dollars in this deal, will we in fact be able to lease the property or we’re going to have $500,000 dollars tied up in property we are trying to lease. We are operating as a landlord in the short term but the idea is to roll the property out of our hands and not to cash flow it off of the rent. The effects of which creates more synergy for the property resulting in more leases being taken down, then we begin to get our investment back and that’s the whole idea of the deal. How do you convert those remaining nine parcels into something that someone comes in and builds on as opposed to decayed buildings that are sitting there right now? Are there any additional questions or comments? I think we are going to wait for our next meeting for any action. Yes, that will be our September 4th meeting. The third item is a referral that came to us from Council, to begin a discussion to look at our I-1 Districts and the current allowance for special needs uses within I-1 property. This is coming off of the Moore Place acquisition by Urban Ministries, and Mr. Barnes asked our Committee to begin looking at this issue. III. Subject: Special Needs Usage in I-1 the Districts Campbell: Young: Katrina Young will be making the presentation. However, I would like to take this time to talk about the information we wanted to share with you. We did not reach a conclusion. We were not given a lot of direction about the issues. We will simply give you information about the topic of special needs housing. We will talk about the districts that they are permitted in and we will talk about how other cities are regulating special needs housing. We will spend a little bit of time on single room occupancy; that is what generated this whole discussion, where those types of uses are permitted. With that said, I will turn it over to Katrina. Toward the end of this presentation we will ask for direction. I am going to begin this presentation by giving you some background on special needs housing. We will also talk a little bit about the special needs housing and the districts that they are allowed in. At the July 20, 2009 City Council Zoning Meeting, Council referred the issue of special needs housing being allowed in the I-1 zoning districts to Council’s ED & Planning Committee for review and discussion. The issues raised by ED & Planning Committee Meeting Summary for August 19, 2009 Page 6 Campbell: Carter: Young: Kinsey: Young: Kinsey: Lassiter: Young: Carter: Young: Lassiter: Kinsey: Young: Kinsey: Young: Kinsey: Young: Council was, are too many uses being permitted in the I-1 zoning district? Why are nearby property owners not being notified when special needs housing is located nearby? And lastly, what is the rationale for permitting these uses in the I-1 zoning districts. The types of special needs housing that we currently have are boarding houses, commercial rooming houses, group homes. There are three types of shelters accessory, emergency and homeless, there are also short-term care facilities and single room occupancy. These are definitions from the Zoning Ordinance. I don’t understand the accessory shelter? I will explain that in just a moment, let me start from the top and go through all of the different types of special needs that are available. Boarding houses are basically allowed in all districts except light industrial. The property owner must reside there. The rooms in the principal structure are rented as an accessory use. There are no separate cooking facilities provided for any border. There are no separate exterior entrances for the borders. The boarding house may have up to 8 boarders at one time. They can have four borders in two rooms and eight boarders in four rooms. Katrina are you saying that all of these are allowed in I-1? No. They are not? Ok, this is a definition. Just a definition, we are starting from this from the base plan. Here are all the specialty housing types. Commercial rooming houses have at least 10 rooming units available for rent for more than seven days. The seven days would be a minimum stay. These tenants are considered as permanent and not temporary. There are not necessarily kitchen or bath facilities available in the room. This is different from a group home in that a group home is a residential building with support and supervisory personnel. Up to 10 handicapped persons with temporary or permanent physical, emotional, and/or mental disability. This facility provides room and board, personal care, and rehabilitation services in a family environment; this is also known as a “family care home”. A group home of six is permitted in a single family district with prescribed conditions. Group homes with up to 10 are permitted in multifamily districts and office districts. They are not allowed in commercial districts or in light industrial districts. Accessory shelters are going to be regulated by non-profit organizations. Accessory shelters are located in an accessory building or site owned and operated by a religious, civic, fraternal, social institutional or government agency. It may house up to 15 individuals at any one time and can operate up to two days and nights per week. Emergency shelter is one that we provide during inclement weather, extreme weather conditions. They provide temporary housing to individuals or families during severe, life-threatening weather conditions or other emergency conditions. Those can be pretty much anywhere. I am still dealing with accessory shelter. Is that a shelter that has supervision? Yes, they provide free lodging. Just like the Boy Scouts spending two nights there. What about Rooms in the Inn? I don’t understand? The church, our church participates in this. Oh, I did not know if that was a particular ministry. Yes. O.K. Then there are homeless shelters that provide free lodging and at least one support service. Support services such as medical treatment, psychological counseling, and or supervision, assistance to become drug or alcohol free. Services also may include job training and placement, child care assistance or assistance in finding permanent housing. Homeless shelters are permitted only in light industrial and commercial districts. Short-term care facilities are a not-for-profit organization that provides short-term care to patients discharged from a hospital or emergency room and with no place to recuperate. The clients must be referred by a hospital or an emergency ED & Planning Committee Meeting Summary for August 19, 2009 Page 7 Lassiter: Lassiter: Young: Lassiter: Young: Lassiter: Young: Campbell: Lassiter: Campbell: Carter: Campbell: Lassiter: Young: room. There is on-site management in a 24-hour safe, structured and monitored environment. There may be up to eight individuals at any given time. The services may include meals, secure storage, refrigeration for medications, medical observation, nursing care and or supervision. There is no time period for the individual in the short-term care facility; the time needed for recuperation is determined by the operator as to how long they may stay at the shelter. These facilities may be located in office, light industrial or commercial districts. The last facility is a single room occupancy (SRO), this is described as being a building with between 11 and 120 rooming units available for rent for periods of seven or more days. There is on-site management 24 hours in each building. There are cleaning services provided and utilities mass metered. There is a maximum of 120 rooming units per site and a minimum of 11 units. There is a Class B buffer if abutted property zoned or used for single family residential use. How did we end up with those designations, is that historical? Did we just come in and say make decisions about this is what we want? I can understand the issues of single family, how did we end up sliding three of these uses, commercial rooming houses, homeless shelters, and SRO to only commercial and industrial uses. These are considered temporary residences as SRO and homeless which are put into a hotel and motel type districts. Why is an emergency shelter allowed in an office district and a homeless shelter is not? They are very similar; you would not know the difference looking at them. The emergency shelter is allowed for specified kinds of life threatening weather. The occupants are not going to be there all the time. Whereas the homeless is a permanent unit. So the winter shelter is not classified as an emergency shelter? It has to be classified as an emergency shelter. It is only in the winter and it gets extended into June, sometimes. Snow is gone. I am just interested, did we firmly make this decision or did someone over time? Homeless shelters would fill the need first and then there became a need in some of the churches and other facilities wanted to assist in the inclement weather. But because they were not in the correct Zoning districts they could not. So that is where we came to allow accessory shelters and the emergency shelters to deal with those issues. At the time, we only had the one homeless shelter and it was located in an industrial zone. We looked at them to see how we could allow for these type uses and minimize the potential threat of impact to those living in single family neighborhoods or residential areas. For instance, SRO we had no clue of what it was, it was very new to us. We knew that we would have to go through a political process in order to allow it. It is not permitted, at least now within a residential area. Now that we understand what the use is, we feel the policy should be allowed in other districts. Actually, it’s almost operating as an apartment complex. McCreesh Place feels like a family neighbor next door to Villa Heights. The Villa Heights people, when you are talking to them, actually like it better than when they used to have loitering and they were just moving up and down the street. There is some value in having some facility that does not have the outward effect. We agree with you and we’ve gotten interest from people wanting to do SRO’s. I have gotten heat from them saying they don’t know why we are treating them differently; then say an apartment complex. They have a lot more supervision and management than some local properties. I agree with this statement and I think it’s something that we need to address. This is something that needs to be brought forward in a planning mode, look at the parallels and address. The only thing I would remind the Committee about is I believe that there is concern by a Councilmember to go in the opposite direction. My sense is that Mr. Barnes did not send you in here to make it more liberal. We surveyed SRO regulations in 30 cities similar to Charlotte. In 24 of those cities, ED & Planning Committee Meeting Summary for August 19, 2009 Page 8 Lassiter: Young: Lassiter: Young: Lassiter: Young: Carter: Young: Campbell: Carter: Campbell: Carter: Campbell: Young: they did not have any SRO regulations. The following cities have SRO regulations most like Charlotte, and permit SRO’s in the following general category of zoning districts. Atlanta, Chicago and Greensboro allowed SRO’s in residential districts. Chicago allowed them also in commercial districts. Only Greensboro allowed them in all residential, office, commercial and light industrial districts. Just a little bit about the history on single room occupancy; the SRO definition and prescribed conditions were added to the Zoning Ordinance through a text amendment in 1999. Prior to adoption, the Zoning Administrator interpreted an SRO use as being most closely related to a “hotel” or “motel”. The rationale to permit SRO’s with prescribed conditions in the I-1 zoning district was they functioned similar to a hotel or motel and those uses are permitted in I-1. How is Hope Haven classified? It is an old hotel, an old convention hotel. I don’t know what it looks like inside. In the classification of all these uses that we are talking about, it is proximate to the neighborhoods that are concerned? I think the question is; is it classified as an SRO? Is it classified at all? It’s probably a commercial rooming unit; again it’s classified as a rooming facility but not necessarily a group home. I think they have common cooking areas; they don’t have cooking within the room. Yes, probably a commercial rooming unit. One item that we have not talked about is turnover in population. If it is more permanent in nature, I think that would reflect in the way that citizens would feel about it. In that way it could be incorporated into the stable neighborhood process. I think this is a step before homelessness, but before getting into a crisis situation. Where as if they were going into an apartment, with first and last months and security deposit, they may not have enough to pay that, they may only have enough to pay one week’s rent at a time. The multi-family provided a measure of security and opportunity for the Police department to come there at will. It is more transitory than an apartment where you would have a lease agreement with a commitment for a one year stay. When you have community life as in Druid Hills or North Davidson where there is a lot of industrial business, you have the opportunity to have a concentration of these types of uses. I think his concern is how you defer the uses concentrating in one area. A couple of things that you have thought about is the way that group homes have been permitted in single family neighborhoods, that you have a separation between the two uses. This is a fair housing issue and I know that we are not unique with that specified separation and I hear that each hour. It is not against the law and I think that there are housing issues that will come in that will not allow. We are saying a distance apart not concentrating and I believe this is a test of Federal law and I am stating my opinion. This goes back nine years ago when we had this discussion about group homes and the report back on that was if we ever challenged that description that we would lose. I am wondering that if we push it by addressing it to another type of housing, I would be very concerned. We personally do not want it to be more difficult. We probably have the most challenging housing crisis that we have ever been confronted with. So to make it more difficult to allow many types of uses, we think from a land use and regulatory prospective we now understand requirements and management. So from a land use prospective and planning prospective, it’s very difficult for us to figure out why you want to make this change, other than possibly allowing this in more parts of the community restricted district. I think also the separation the family unit of six or less is the challenge. A family unit is six or less unrelated people. That is one of the options that you do have a proliferation of SRO’s. Then we have the option to allow that proliferation in certain areas if that is what we wanted. ED & Planning Committee Meeting Summary for August 19, 2009 Page 9 Mitchell: Lassiter: Mitchell: Young: Lassiter: Kinsey: Lassiter: Mitchell: Lassiter: Kinsey: Lassiter: Kinsey: Lassiter: Mitchell: Staff help me with two pieces of information; one can we get a map of current SRO locations? There is only one. One? So the other classifications of group homes there are different classifications? How do we process group homes in communities? I have one that neighbors are complaining about, it occurred in a community. Are there any types of regulations that we have around group homes? If that is something that is being funded, it can be reported to that agency. Let them know that is not operating. I think we are betwixt and between a variety of policies. It has come to this Committee because part of our charge is planning and within that are the recommendations to the Zoning Ordinance. It is not in front of us because of operations of facilities or appropriateness of care or any other thing that might fall into another committee or political box. I think what we have to decide is has this come to us for a recommendation for a look into it? Within the responsibility of this Committee, broadly stated, what do we want to ask staff to do next, in response to the referral? We have good analysis of Zoning classifications and uses of those; here is some of the strengths and weakness of those and why. Do we want to go further into opening up a can? Is it too liberal in some places or too restrictive in others? Or do we want to say that it’s just fine and we want it to be handled by another Committee of Council? This could be easily handled from Housing and Neighborhood Development, who could talk about decisions that could be made. I think that Committee has a larger decision to be made about SRO’s, because this is a policy question. I throw that out, or do we want some external input, I hate to talk about stakeholders, but. There is I think some reason to bring input from effected neighborhoods and those that are providing housing in this community to talk about this particular decision. Is it appropriate for 2009 City of Charlotte? I just throw that out to frame where we are and decide are we going to jump in the pool or not? We know why this was referred. What is the timing on this? Is there a Zoning coming up? What is happing is that Moore Place, provided that it gathers it’s funding, can build by right in a I-1 piece of land off of North Tryon Street. Oh this is the Moore Place issue? Yes, and Mr. Barnes has constituents that are very concerned. They were frustrated that there was no way to stop it. They did not require any Zoning approval provided the limitations of separations. So it’s going to occur either way. If the funding is there? If the funding is there, similarly there are two other projects that are coming on line on West Boulevard. One by Family Services and one by Charlotte Rescue Mission, similarly are facilities that will come in an area where some folks will wonder why they are getting more of that. They are also by right and so the question is do we have the right mix of controls and how do we respond to neighbors who go I want that and I can’t do anything about that. I am not sure removing them from I-1 is the answer and that is the only thing that would stop them, so where are we on that? That is why we are laying the issue out so that we all understand the issue; I don’t have the answer. We have to decide, we can say we looked at it. We don’t think we will make a change and we will take no action. We could take an affirmative step we have no change, we all agree to not change. We could go further, and say staff we want you to convene some off line analysis like we have done with other issues related to it. The relationship between residential property and industrial property and say let’s come back with some recommendations on what we think we should do. Recognizing that if we do have recommendations we may have things that might not be fully consistent with the nature of the referral which is looking for a more restrictive code. When you say Moore Place, let staff help me out here. Where is the one SRO that we ED & Planning Committee Meeting Summary for August 19, 2009 Page 10 Kinsey: Mitchell: Campbell: Mitchell: Campbell: Lassiter: Mumford: Mitchell: Lassiter: Kinsey: Kimble: currently have now? McCreesh Place, North Davidson. North Davidson, your district as you go to Villa Heights? Staff how difficult would it be if we treated the SRO as regular rezoning issues, land use? I do remember Mr. Barnes, said some of the neighbors were very adamant about we have our share. They feel with the winter shelter on the other side of Statesville Road and now we have another one, so we have our share. It would be difficult if we were to take this out of I-1 and make a regular rezoning partition. What are the pros and cons of doing that? Don’t take this personal. I won’t take it personal, Debra. I think it would be viewed as what is so unique about this uses. Differentiate this one from all the others special needs houses, until we can figure that out from a legal perspective, I think that we would be discriminating against this particular use. Saying that this is so unique, I would definitely need help in coming up with something like needing a special use permit, which we no longer do those type things. Certainly there can be discussions and talk about the alternatives, but again, I would still want to know what makes this unique apart from any apartment complex. The research we did on other communities they all allow generally. These are the cities we looked at that were similar to Charlotte, smaller than Chicago more like Atlanta, Ga. When this issue came up everyone had great fear how adverse this would be to build McCreesh Place. If fact, it has been the opposite. It has been a great success and a good neighbor and a much better neighbor than the homeless shelter that it in part replaced. So the argument is this kind of managed, single entry, low impact kinds of communities have less consequence than free-wheeling types with people coming and going in and out of the shelter. You all go over and you walk through, it’s a mess. It bleeds into the neighborhoods, you have people that have substance problems and they carry those into the surrounding neighborhoods. They have criminal histories and they carry those into the surrounding areas. The impact at McCreesh Place is nominal. The arguments for the other ones that are going to be built are pulling people away from the environment and limiting their impact on those around them. I think we have to be careful when we say let’s make it harder to do that; what we need to do is make sure that they are done in a way that replicates success. We do have the capacity to build them unrestrained within limitations. When you look at Atlanta you can only build them in residential areas, they are not going to let them go industrial. I think it’s really a mixed bag. You want to run the Committee the agenda items on special needs housing in I-1 you have gotten into the discussion to SRO’s. So it’s really all of those types of housing within one location. Pat, I think you make an excellent point, but we all remember the discussion. The biggest issue in Druid Hills was the citizens not having a process to voice opposition. I think we struggle to provide the opportunity. We are going to see this on West Boulevard that the train has left the station we just need to make sure we find a way to slow down the train or provide a way that the citizens get their voices heard. That’s what I struggle with how we do that, we don’t want West Boulevard saying we had no say so, it’s not an agenda item it just pops up in our community. We disapproved a homeless shelter on Beatties Ford Road. We are in the business and maybe the next step to resolve this is to have staff think through some methodology some opportunity for people to voice their opinions. Through the housing community and within the people that are affected, gather some thoughts and issues and see what we can come back with. Really what authority do we have? We are not doing any of the funding and it is by right. I know more places wanting trust funds, but if we are not doing any funding and it’s by right, we really can’t do too much. Right? If we start doing something we will open a can of worms. You are down to three basic points; notification provision, spacing or separation ED & Planning Committee Meeting Summary for August 19, 2009 Page 11 Lassiter: requirements and which Zoning districts things are allowed in. We can go back and give some thought as to any conversation we want to have about any of those three areas as it relates to special needs housing. That’s a little bit broader than the referral was, but I think the issue is the compact nature of these occurring in one specific location. It’s notification, spacing and Zoning classification, that’s the only way that you can address the issue. I think the interaction with the citizens is crucial; the interaction sometimes improves the project. I think that is one of the best things we can do with rezoning. I think you have to be careful stimulating the opportunity for the people to really have an impact on the action. A lot of times when we have explained the logistics the people do not want it in the neighborhood. We have to be very careful. I think the next step should be to have Councilmember Barnes at the meeting. Do you want us to start over with the education for him? I believe he is beyond that so he is o.k. I think we have opened up the can so I think it’s really appropriate to really look at how we are going to solve these problems. How do you keep from impacting the neighborhoods, what is the broader issue and what are the next steps? It also will weigh in as to what is on the horizon as we go along. We can at least start with those three points and decide how we engage input from those affected and who care and who are trying to make things happen. One of the things that is going along on a parallel track in the Housing Committee is doing an overall assessment of our housing policy, looking at the housing alternatives and what that means, so it’s very appropriate to have these things running parallel because they should move effectively together. Location and zoning issues match up to what you want to do policy wise. One point that needs to be made is thoroughfares, that is probably the most permissive of and I think that is a crucial element of what we are trying to do, but clustering is most difficult. It’s a difficult balance. I am concerned and want people engaged so that things can be built and enhanced by these structures. Anymore discussion on that? Alright, thank you all. IV. Subject Small Business Assistance Lassiter: The last item is a short update on small business efforts underway in the City. Nancy Rosado is here to give us a quick update on what they have been doing as it relates to small business. You should have received in your packet a two page summary of resources that the City offers under the Small Business Opportunity Program (SBOP) or by our partners that we refer. These resources are offered in an effort to grow and develop small businesses here in the Charlotte regional area. The Small Business Enterprise (SBE) Certification is a race and gender neutral program that ensures small business participation in contracting and subcontracting opportunities with the City of Charlotte. Applicants must meet the eligibility requirements to earn the SBE designation. Eligibility requirements include such things as income and location within the Charlotte regional area. The Small Business Enterprise Loan Fund is a public/private capitalized fund providing small businesses with access to capital with more flexible underwriting standards than a traditional small business loan. The City contributed an initial investment of $500,000 dollars to the fund, which is administered by the Self-Help Credit Union. This is for small business owners who probably would not be able to get a loan through traditional channels. Other financial partners include: Bank of America, Branch Banking & Trust, First Charter, First Citizens Bank, Foundation for the Carolinas, John S. and James L. Knight Foundation, Piedmont Natural Gas, RBC Centura Bank, Self-Help Credit Union, Time Warner Cable and Wachovia Bank. The SBOP has also created further opportunities for small business development by providing tuition assistance of up to $300 dollars per SBE per year for enrollment in the Central Piedmont Community College (CPCC) – Institute for Entrepreneurship courses. In FY08 -09, the SBOP paid $6,000 in tuition costs for SBE’s to take classes Carter: Campbell: Mitchell: Lassiter: Carter: Rosado: ED & Planning Committee Meeting Summary for August 19, 2009 Page 12 Carter: Kimble: Mitchell: at CPCC. The Mentor Protégé Program is an internal program that provides hands-on managerial and technical assistance by matching SBE owners and managers in need of guidance and training for the “Protégé” with larger more experienced companies the “Mentor”; an example of that would be our NAWBO partnership. We actually have a partnership with the National Association of Women Business Owners. A group of women are currently mentoring three of our SBE’s, the SBE’s have told us that it has been a wonderful experience. This is a year long process that they have built on. The SBOP is also in association with professional associations that provide partial sponsorships of $100 dollars towards annual membership dues for the professional associations such as the Charlotte Chamber of Commerce, Carolinas Association of General Contractors (AGC), Metrolina Minority Contractors Association (MMCA), National Association of Women Business Owners (NAWBO) and the Latin American Chamber of Commerce (LACC). We recognize the value of networking; in FY08-09, the SBOP paid $2,700 dollars in membership dues to these local organizations on behalf of our SBE’s. On the second page is a list of the current organizations that the SBO Program also collaborates with, they are external organizations that assist small businesses. SBOP staff regularly refers customers to our financial assistance partners such as Self-Help. Self-Help is a nonprofit community development lender whose mission is creating ownership and economic opportunity for small businesses and nonprofit organizations headed by minorities, women, rural residents and low-wealth families. Self-Help also administers the SBE Loan Fund, which is a Federal 504 Loan Program. Centralina Development Corporation, working in corporation with a bank, Centralina provides Federal 504 Loan Program financing for fixed assets at a low-fixed interest rate. BEFCOR, Business Expansion Funding Corporation, working in partnership with a bank, BEFCOR provides Federal 504 Loan Program financing for fixed assets at a low-fixed interest rate. Then there are our educational partners including CPCC which I have already mentioned. The Small Business & Technology Development Center provides management counseling and educational services to small and midsized businesses. Their primary focus is operations, and business planning and feasibility assessment. The Counselor to America’s Small Business you may know more readily as SCORE. SCORE members are a group of retired business professionals who provide volunteer business services to those interested in starting or expanding a business. Free consultations are available to help individuals define a successful marketing strategy, develop a marketing plan or help solve business problems. The Minority Business Development Center, offers managerial and technical services to assist minority entrepreneurs. Assistance provided in writing business plans, marketing management, technical assistance and financial planning. And then the Public Library of Charlotte and Mecklenburg County has sample business plans, sample business research tools and much more, all available at no cost on the second floor of the main library located on North Tryon. I believe Ms. Carter mentioned at the last meeting putting together some type of group. Thank you for letting us know what we do and how we partner. This does not indicate how much these services are used or if the community knows how successful they are. I am asking if this is the best use of our money to provide what is needed by our small businesses? I respect this but I would still like to see an advisory group pulled together that have been through this or have tried to access or been successful. I would like a good dialog or discussion about how we are serving these small businesses. I think that if you as a group would like to pursue that, I think the full Council has to weigh in and then how does that layer with the current Business Advisory Committee? Also considering whether this group would be joined with that or a spin-off of that or totally unrelated to that? I think there just needs to be some logistical issues that we need to work through as well. I think Nancy and her department interviewed a lot of companies on the SBE and got feed-back on how the program was doing. To Councilmember Carter, let’s make sure that some of the companies that she has requested were not some of the companies ED & Planning Committee Meeting Summary for August 19, 2009 Page 13 Flynn: Carter: Lassiter: Carter: Lassiter: Carter: Lassiter: Adjourned: that we have already interviewed. I know that we got great feedback and a lot of those companies have already been interviewed, let’s make sure that we getting all of the constituents. Sounds like Councilmember Carter has a few business owners that maybe we did not interview with. What are you asking us to look at? Are you asking what we provide to Certified SBE’s, or are you looking at all small businesses in Charlotte? Or people that are interested in forming small businesses. I think this is a seed process, and that is why I am not sure where we are going. We have run two conferences in the last three years for that particular purpose. I regularly refer people to Nancy’s office that call me asking how to find the resources. I will make a suggestion. I think it would be good to have our Business Advisory Committee to take a look at this and ask where are the opportunities, or give advice and recommendations from small business owners on that body. Let them take a stab at it and come back with their recommendations. Perhaps opened up in public meetings? Yes. Get it a little more publicized so that will put more interest in it. Before doing a public hearing, let Nancy go and give them a presentation to hear what we are doing, as opposed to a public hearing. I don’t know what is going to happen. I just think we need to take advantage of the resource that we have, they meet on a monthly basis to talk about business-related activities. We don’t often utilize that resource back to Committee, and this is a good chance to do that. We have had our business corridor meetings, two of those, and those were very complicated to organize and very expensive. 5:07pm Economic Development/Planning Council Committee Wednesday, August 19, 2009 at 3:30pm Charlotte-Mecklenburg Government Center Room 280 Committee Members: John Lassiter, Chair James Mitchell, Vice Chair Nancy Carter Anthony Foxx Patsy Kinsey Staff Resource: Ron Kimble, Deputy City Manager AGENDA I. CAROLINA THEATRE – 30 minutes Staff: Tom Flynn, Economic Development Manager & Peter Zeiler, Transit Station Area Coordinator Action: Staff has met with all parties and will report on the status of the easement to the Committee and request action. II. GREENWAY BUSINESS CENTER GRANT REQUEST from CHARLOTTE MECKLENBURG DEVELOPMENT CORPORATION– 30 minutes Staff: Tom Flynn, Economic Development Manager & AC Shull, Special Projects Manager Action: On July 24th, the City Manager referred this item to the ED & Planning Committee to make a recommendation to City Council on the Charlotte Mecklenburg Development Corporation’s request for a $500,000 grant to complete rehabilitation of two vacant buildings at the Greenway Business Center. Attachment III. SPECIAL NEEDS USAGE in I-1 DISTRICTS – 30 minutes Tim Manes, Planning Coordinator for Land Development & Debra Campbell, Planning Director Action: At the July 20th Zoning Meeting, Councilmember Barnes requested that the ED & Planning Committee review the Text Amendment and which Amendments allow for special needs housing in I-1 Districts. Staff will present background information to the Committee on location for special needs housing. IV. SMALL BUSINESS ASSISTANCE – 5 minutes Nancy Rosado, Small Business Program Manager Action: Provide response to Committee’s request from the Small Business Resource Event for information on small business assistance. Attachment V. NEXT MEETING: September 2, 2009 at Noon, Room 280 Possible Topic: Follow-up on Special Needs Usage in I-1 Districts Distribution: Mayor/City Council Curt Walton, City Manager Leadership Team Executive Team SMALL BUSINESS RESOURCES The City of Charlotte’s Small Business Opportunity Program (SBOP) offers the following programs and services in an effort to grow and develop small businesses in the Charlotte Regional Area: Small Business Enterprise (SBE) Certification: A race and gender neutral program that ensures small business participation in contracting and subcontracting opportunities with the City of Charlotte. Applicants must meet the eligibility requirements to earn the SBE designation. Small Business Enterprise Loan Fund: A Public/Private capitalized fund providing small businesses with access to capital with more flexible underwriting standards than a traditional small business loan. The City contributed an initial investment of $500,000 to the fund, which is administered by the Self‐Help Credit Union. Other financial partners include: Bank of America; Branch Banking & Trust (BB&T); First Charter; First Citizens Bank; Foundation for the Carolinas; John S. and James L. Knight Foundation; Piedmont Natural Gas; RBC Centura Bank; Self‐Help Credit Union; Time Warner Cable; and Wachovia. Institute for Entrepreneurship Tuition Assistance: Provides tuition assistance of up to $300 per SBE per year for enrollment in Central Piedmont Community College ‐ Institute for Entrepreneurship courses. In FY08‐09, the SBOP paid $6,000 in tuition costs for SBEs to take classes at CPCC. Mentor Protégé Program: Provides hands‐on managerial and technical assistance by matching SBE owners and managers in need of guidance and training (“Protégé”) with larger more experienced companies (“Mentor”). Professional Association Sponsors: SBEs are eligible to receive partial sponsorships of $100 towards annual membership dues for the following local organizations for one year: • Charlotte Chamber of Commerce • Carolinas Association General Contractors (AGC) • Metrolina Minority Contractors Association (MMCA) • National Association of Women Business Owners (NAWBO) • Latin American Chamber of Commerce (LACC) In FY08‐09, the SBOP paid $2,700 in membership dues to these local organizations on behalf of our SBEs. 1 The SBO Program also collaborates with external organizations to assist small businesses. SBOP staff regularly refers customers to the following area partners: Financial Assistance Partners: Self Help: A nonprofit community development lender whose mission is creating ownership and economic opportunity for small businesses and nonprofit organizations headed by minorities, women, rural residents and low‐wealth families. Self‐ Help also administers the SBE Loan Fund, which is a federal 504 loan program. Centralina Development Corporation: Working in partnership with a bank, Centralina provides federal 504 loan program financing for fixed assets at a low‐fixed interest rate. BEFCOR‐ Business Expansion Funding Corporation: Working in partnership with a bank, BEFCOR provides federal 504 loan program financing for fixed assets at a low‐fixed interest rate. Educational Partners: CPCC Institute for Entrepreneurship: Provides one‐on‐one counseling and access to their resource center with materials and resource information to plan or improve small businesses. Free seminars on business related topics are offered most months at the Institute and various public library locations. Small Business & Technology Development Center: Provides management counseling and educational services to small and midsized businesses. Their primary focus is operations, and business planning, and feasibility assessment. Counselors to America’s Small Businesses (SCORE): SCORE members are retired business professionals who provide volunteer business services to those interested in starting or expanding a business. Free consultations are available to help individuals define a successful marketing strategy, develop a marketing plan or help solve business problems. Minority Business Development Center: Offers managerial and technical services to assist minority entrepreneurs. Assistance provided in writing plans, marketing management, technical assistance, and financial planning. Public Library of Charlotte and Mecklenburg County: Sample businesses, sample business research tools and much more are all available on the second floor of the Main Library. 2 9/2/2009 Carolina Theatre Update Carolina Theatre Update ED & Planning Committee g May 13, 2009 ED & Planning Committee August 19, 2009 Activity Update • Bank of America has refined design options for fire egress • $250,000 ‐ $280,000 estimated in additional up‐fit during build out for Foundation for the Carolinas • B of A will have code review performed to obtain approval for solution and determine if easement is needed for front exit to Tryon • Any new easement in front can be defined and approved at later date at later date 1 9/2/2009 Potential Easement Action Items • Reaffirm June 15 ED&P recommendation • Review any future refined easement needs 2 9/2/2009 Greenway Business Center Grant Request Economic Development & Planning Committee August 19, 2009 Wilkinson Park Success • City Investment - $2.1M • Federal F d l Grants G t - $1.7M • Construction began in 2003 -Completed in 2008 • Increase in tax b base - $12M $ • Jobs Created - Construction: 915 - Permanent: 233 1 9/2/2009 Title – Item Title – Item 2 9/2/2009 Background • The Charlotte Mecklenburg Development Corporation (CMDC) began development of the Greenway Business Park in the summer of 2008. • All infrastructure improvements are now complete, including roads, water detention, landscaping, utilities, and site work. • Site work was completed on the Park in the Spring of 09. • City and County both invested $950,000. – County committed an additional $835,000 for park improvements (pending) • CMDC has rehabbed one of the three existing buildings on site. – Funded by Federal grants totaling $429,000 2732 Rozzelles Ferry Road • CMDC rehabbed the 5,860 square foot building. • CMDC finished the rehabilitation on time and under budget. budget • The BRIDGE Jobs Program, a non-profit, has signed a lease for half of the redeveloped building and is currently occupying the space. 3 9/2/2009 Request • CMDC is requesting $500,000 to be used to offset construction costs to rehab the two, remaining, vacant buildings. • CMDC owns the buildings and is ready to move forward immediately. • This project would create an additional 14,300 square feet of lease space. • City funding is needed, as market rents will not support the project. Illustrations of Proposed Buildings – Item 4 9/2/2009 Illustrations of Proposed Buildings – Item Rationale • Supports redevelopment of priority business corridor and adjacent target neighborhoods of Smallwood, Lakewood, and Seversville. • Enhances the overall Greenway Business Center - improves look of unsightly buildings & sets stage for further corridor activity. • Current market opportunity for lease space. • Provides opportunity for neighborhood-serving retail (e.g. bank, credit union, restaurant). • Creates approximately 75 temporary construction jobs and 50 permanent jobs. 5 9/2/2009 Costs Include • Renovation and site costs estimated at $120 to $125 per square foot. • CMDC estimates new construction costs $130+ $ per square foot. • Rehabilitation of vacant buildings preserves history & character of the neighborhood by saving the buildings. • Renovation and site costs include: – Site work (asphalt, grading, curb, gutter, water taps, sewer) – All new roofing, plumbing, electrical, and HVAC – Green building adaptive reuse practices add additional cost Greenway Proforma: Option One Proforma One (with City funds) USES Construction Costs 1,731,471 1,731,471 Sources City Corridor Funding CMDC Equity Conventional Debt 500,000 500,000 731,471 1,731,471 NOI 2734 Rental Revenue (NN) 2730 Rental Revenue (NN) Less: 10% Vacancy Less: Operating Expenses Less: Interest 49,851 78,588 (12,844) (24,974) (43,888) 46,733 Return NOI Equity ROE (City & CMDC) 46,733 1,000,000 4.67% 6 9/2/2009 Greenway Proforma: Option Two Proforma Two (w/o City funds) USES Construction Costs 1,731,471 1,731,471 Sources CMDC Equity 500,000 Conventional Debt 1,231,471 1,731,471 NOI 2734 Rental Revenue (NN) 49,851 2730 Rental Revenue (NN) 78,588 Less: 10% Vacancy (12,844) Less: Operating Expenses (24,974) Less: Interest (6%, 20yr am, 5yr tm) (105,872) (15,251) Summary • CMDC is requesting $500,000 in ED Grant Funds pp for funding g from Business • Staff recommends approval Corridor Revitalization Funds – $7 million uncommitted balance – If approved, will be under construction by end of 2009 7 9/2/2009 Katrina Young, Zoning Administrator Charlotte-Mecklenburg Planning Department 1 9/2/2009 “Special Needs Housing” Types: g House Boarding Commercial Rooming House Group Home Shelters Accessory Emergency Homeless Short-term Care Facility Single Room Occupancy 2 9/2/2009 Property owner must reside on the premise. Rooms in the principal structure are rented as an accessory use. use No separate cooking facilities provided for any boarder. Up to 8 boarders permitted. No separate exterior entrances for boarders. A building containing up to 10 rooming units available for rent 7+ days. 3 9/2/2009 Residential building with support and supervisory personnel. Up to 10 handicapped persons with temporary or permanent physical, emotional, and/or mental disability. Provides room and board, personal care, and rehabilitation service in a family environment. Also known as “family care home”. Located in an accessory building or site owned and operated by religious, civic, fraternal, social, institutional or government agency. Up to 15 individuals at any one time. Operates up to 2 days/nights per week. Provides temporary housing to individuals or families during severe, life-threatening weather conditions, or other emergency conditions. 4 9/2/2009 Provides free lodging and at least one support service: Meals Medical treatment Psychological counseling, treatment, and/or supervision Nutritional counseling Assistance becoming drug or alcohol free Employment counseling Job training and placement Child care Assistance in finding permanent housing. A not-for-profit organization that provides short-term care to patients discharged from a hospital or emergency room with no place to recuperate. Clients must be referred by hospital or emergency room. On-site management in a 24-hour safe, structured and monitored environment. Up to 8 individuals at any given time. May include meals, secure storage, refrigeration for medications, medical observation, nursing care and/or supervision. 5 9/2/2009 A building with between 11-120 rooming units available for rent for periods of 7+ days. On-site management 24 hours per building. Cleaning services provided and utilities mass metered. Maximum of 120 rooming units per site; minimum of 11 units. Class B buffer if abutting property zoned/used for single family residential use. Special Needs Housing Boarding House Single-Family Districts Multi-Family Districts Office Districts Commercial Districts PC PC PC PC Commercial Rooming Houses Group Home PC PC PC up to 6 X up to 10 X up to 10 PC PC PC PC PC PC PC PC PC Short-term Care Facility Shelter - Accessory Industrial Districts PC PC Shelter - Homeless PC PC Single Room Occupancy (SRO) PC PC Shelter - Emergency X - Permitted PC - Permitted with Prescribed Conditions 6 9/2/2009 Surveyed SRO regulations in 30 cities: 24 cities do not have SRO regulations The following cities have SRO regulations most like Charlotte, and permit SRO’s in the following general category of zoning districts: City Residential Districts Atlanta Atl t 9 Chicago 9 Greensboro 9 Office Districts Commercial Districts Industrial Districts 9 9 9 9 History The SRO definition and prescribed conditions were added to the Zoning Ordinance through a text amendment in 1999. Prior to adoption, the Zoning Administrator interpreted an SRO use as being most closely related to a “hotel” or “motel”. The rationale to permit SRO’s with prescribed conditions in the I-1 zoning district was they functioned similar to a hotel or motel and those uses are permitted in I-1. 7 9/2/2009 What additional information is needed? Committee direction on next steps 8