ED & Planning Committee Meeting Summary for May 21, 2008 Page 1 ______________________________________________________________________________________ COMMITTEE AGENDA TOPICS I. Subject: Action: Belmont Retail Update on Staff review of options for supporting retail in Belmont II. Subject: Action: Residential Pedestrian Lighting Process Receive information regarding pedestrian scale/decorative lighting and make recommendation for moving forward III. Subject: Action: First Ward Park and Parking Update on First Ward Park COMMITTEE INFORMATION Present: Time: Council members John Lassiter, Nancy Carter, Anthony Foxx, Patsy Kinsey and James Mitchell 3:30 p.m. – 5:20 p.m. ATTACHMENTS 1. 2. PowerPoint Presentation Belmont Retail Development PowerPoint Pedestrian Scale/Decorative Lighting in Residential Development. DISCUSSION HIGHLIGHTS I. Subject: Belmont Retail John Lassiter, Chair: We have gotten the return of the conversation on Belmont Retail which the Committee dealt with last September. We took it to Council for some feedback and they asked us to work on it some more so we are going to get another chance to reflect on those issues in that neighborhood. Tom Flynn: We want to provide some background and go over where we were, talk to you about some opportunities that we have explored at the intersection of Parkwood and Pegram and also some additional information on the Walker’s Grocery, Fatback Queen and Stewart and Perina site. We have some preliminary recommendations and we also have some more work to do, but we thought it was the appropriate time, given where we were on some of these, to bring it back to the Committee, get your thoughts and see whether this is ready to move forward to Council or whether you want us to do some more work in it. (Mr. Flynn used PowerPoint for his presentation to the Committee) In September 2007, the Council directed us to pursue more work on developing a mixed-use center to see what could happen at Parkwood and Pegram and also explore potential reuse/redevelopment of willing C-store owners in the heart of Belmont. We’ve done some more exploration of what land we could purchase along Parkwood and Pegram. We’ve looked at a market study in that area, we’ve ED & Planning Committee Meeting Summary for May 21, 2008 Page 2 ______________________________________________________________________________________ done some design work and also had some conversation with both the private sector and the non-profit development sector in terms of the CharlotteMecklenburg Development Corporation in terms of their interest as well (pointed out the location of Parkwood and Pegram and pointed out the parcels owned by the City). We are looking at trying to get a retail project along those two blocks. We have a willing seller at appraised value for those two parcels and have either unwilling sellers or sellers at significantly above appraised value on the rest of this. Questions/Answers/Comments Kinsey: What is the significance of the different colors or is there a significance? Drayton: It is based on the zoning classification. Foxx: Mr. Flynn, could you give us some idea of magnitude in terms of what people are asking for on the property? Flynn: I’ll get to that. Flynn: Kinsey: Flynn: Flynn: (Continued his presentation with Findings: Parkwood and Pegram Retail). Josh’s Grocery – it says 18th and Seigle so that is not contiguous is it? No it is not contiguous to this and we will show you what we’ve done and what you could accomplish. I’ll let A. C. Shull talk about this because he and Bob Drayton from our Real Estate Division were more involved in the conversations around what the adjacent property owners wanted, to answer your question, Mr. Foxx. Shull: Mr. Lunn’s property, you can buy it at appraised value of $412,000. The adjacent property owner is Mr. Jenkins and he owns two lots there and up here Carlos Espin owns two lots and Mr. DeVant. They are somewhat in the real estate business in Belmont and we don’t know what plans they have for that property, but they are not willing to sell at this time. If they do sell, they were asking for about two times the appraised value which is $550,000 per lot. That is so far beyond the appraisal that the City would look at that we really didn’t consider it any further. Maybe they would want a proposal to develop at some other time, but they are not interested at this time or either they are driving a higher price. Foxx: Is that two times the appraised value true of both sets of properties? I feel like I’m having a conversation about a small town in North Carolina. We are talking about Joe’s Rib Shack and somebody’s fish store and what I would like to see something that takes each parcel and tells us what the appraisal value is and what the owner is asking. Is that too hard to get done? Flynn: No, we can do that. Lassiter: The three green parcels, is there currently buildings on those parcels? Drayton: Yes. Lassiter: What are they? Are they residences or what? Drayton: The first two on the right are single family homes and the two buildings you see in the middle, the first one in the green property and the second one in the purple property are both commercial buildings. The commercial building on the left currently does not have a roof, it just has walls and there is a flea market operating out of the one on the right in the green ED & Planning Committee Meeting Summary for May 21, 2008 Page 3 ______________________________________________________________________________________ Lassiter: Drayton: Lassiter: Flynn: Lassiter: Drayton: Lassiter: Kinsey: Drayton: Lassiter: Drayton: Lassiter: Flynn: Lassiter: Flynn: Lassiter: Drayton: Foxx: Flynn: Foxx: Carter: Shull: Flynn: Kinsey: Carter: Flynn: Flynn: section. Is it one building? They are two separate buildings operating as one ownership. There are three green parcels, do we own any of the green parcels? No. Then there are three purple parcels and one behind it. How many of those do we own? One, two and three. We only own the ones to the right. And that is owned by the same guy who owns the ones in the green. Wait a minute, I didn’t see the light. Pointed out the ones the City owns. Everything to the right of that is owned by the same guy and he’s got commercial zoning on one and residential on the other? The next two lots are owned by one person and the two on the corner are owned by separate individuals. None of those folks want to sell? That is correct. Now, on the other side the first two are for sale, but the last three to the left are not for sale. That is correct. What is on all of those properties? The one in the middle is a vacant lot and that is like a commercial business with an office on the corner and those two on the corner are owned by one individual and he is asking about twice the appraised value. I’m getting more confused. When you say that the owners on the left hand side, the purple color, don’t want to sell, are you saying they don’t want to sell or they are asking more than we want to pay? They are asking twice the appraised value. I can’t recommend the City purchase at twice the appraised value. I’m not asking you for a recommendation like that. I just want to understand the dynamics here and whether they are willing to sell, but they are willing to sell for a higher price because there is a difference to me. I was wondering if you could go into the same analysis across the street. A gentlemen named Bruce Wright owns both sides of the road there. He works for the City of Charlotte and he is interested in developing his property and would like to see a project, but he wants to do his own sole ownership type deal. He does not want to sell. He owns the two on the corner? Behind those two? We didn’t go into those. (Continued his presentation). We think is feasible is to purchase the Parkwood Grocery, those are the two lots on the corner and we can purchase those at the appraised value. They provide a key location for a retail development. We’ve had conversations with CMDC and they are interested in pursuing that. They think there are some other opportunities there so we would like to move forward on that. We have a willing seller, ED & Planning Committee Meeting Summary for May 21, 2008 Page 4 ______________________________________________________________________________________ Lassiter: Flynn: Lassiter: Shull: Lassiter: Shull: Flynn: Kinsey: Flynn: Kinsey: Shull: we can put something better there, something that serves the community better. It sets up potential redevelopment now or in the future if nothing is able to happen there. It also allows us to purchase Josh’s which is a closed convenience store in the middle of Belmont. That is why that is a recommendation to move forward on Parkwood and Pegram. Tell me about Josh’s property. Josh’s property is located at 18th Street and Seigle Avenue, much more into the neighborhood of Belmont. We have a willing seller at the appraised value. The Plan calls for this to be residential and it actually is zoned residential and is a non-conforming use. This would basically remove blight, bring it back to a conforming use. It would require the City to write down the land costs and we think the land cost for a single family house, which is what could be developed on that lot, or a concept of one single family home, probably can afford somewhere in the neighborhood of $30,000 worth of land value. We would have to write down in order to sell this. I think this promotes the plan, eliminates a non-conforming use and we have a willing seller. It can bring back a nice single family dwelling into the heart of the neighborhood. What are the adjoining uses around that? More specifically what are the price points in there, how much is new construction? We are talking about reselling it, having somebody to build it? Close to that area you find houses that are selling and rehabbing $300,000. I have seen quite a few of them $350,000 where somebody purchases an older house and rehabs it. There is a lot of that going on within two blocks of this area. Also within a couple blocks of this area is the St. Paul Church which has a master plan to redevelop houses, which is a rather large plan. That is what is near Josh’s. If the properties are now being rehabbed and selling for $300,000 why hasn’t the market come in and bought it? I don’t think Mr. Lunn has been willing to sell up to this point. He has a boarded up store and vines are growing on it. It is close to another convenience store, which is Walker’s Grocery, which is part of this proposal which makes it a fairly unattractive lot. Also he is asking appraised value of $70,000 that puts you into basically a half-million dollar house if you were going to land value and there to a total development value. That is why we said if we did this we would have to write down the cost because you can’t build a residential house in Belmont and sell it for $71,000. That market doesn’t work today. I know where this is and I wouldn’t want to live there right now. What is the possibility of our buying it and knocking it down and just holding the property until the surrounding property? I wouldn’t want to live near Walker’s – that is not a good corner right now. That is a possibility too. The City would not develop it. We would knock it down and sell the land for residential. Why not hold it until somebody really wants to come in there? Another interest has been from the Housing Authority who is working with the Belmont CDC. I think the plan is to build ten houses and I don’t think they have built any yet. I have had some past conversations about the Housing Authority essentially buying the lots we might come with here for single family development. Those houses would be less than what I ED & Planning Committee Meeting Summary for May 21, 2008 Page 5 ______________________________________________________________________________________ Lassiter: Drayton: Lassiter: Drayton: Lassiter: Drayton: Lassiter: Drayton: Flynn: Lassiter: Foxx: Flynn: mentioned, the $300,000 and would be more affordable, probably in the $190,000 range. This is not a conforming use, which means you could not reopen that commercial property, which means you can’t live there, which means its trade value is whatever the cost of land is less the cost of demolition. Is that $71,000? I’m sorry, what was your question? This may be an incorrect assessment, but if it is not a conforming use, you cannot reopen that as commercial property, cannot be used as a residential property because it does not meet residential code, which means its only value is as raw land less the cost of demolition of the existing structure, and that is $71,000. So a lot now in the neighborhood, they are all $71,000? They are based on the square footage cost, roughly $10 per square foot and that is what lots are selling for in Belmont, $50,000 to $70,000 range. Is that discounted for the cost of demolition, so the property is worth $80,000? I don’t think demolition would be that much. I think they estimated demolition to be about $5,000. I am struggling with that math just because you’ve got the variables and you’ve got location issues and this is not prime real estate in Belmont. If some other things are resolved it may become closer to prime, but in its current status, it is not that. Have we talked to the owner of this property about what it is going to be worth or have we just talked about appraised value? We have talked to him about what he wants and he is asking more than appraised value. We are still negotiating with the property owner. We’ve had an appraisal done and a new appraisal so we actually have two appraisals. I think what I’m hearing is the Committee would like some more information about the appraisal and the … used to come up with that appraisal. I think what I’m trying to get to is more comprehensive information. I’m having to imagine in my head where things are, how they connect and how all of this kind of rolls up. Maybe you had it in your slides, but I’m not going to ask you to figure that out until I understand the whole business deal and I’m kind of picking at pieces of the business deal as it comes in front of us. I’m having a similar struggle. I don’t know if it is 100% the same, but on this page, for example, what is the public policy purpose for acquiring this property? That is what I’m struggling to understand. Is it to remove blight, is it to remove a crime magnet, is it to place a use that is going to have a catalytic impact on that block? One, it is a package deal for this and the two lots at the corner of Parkwood and Pegram. Our understanding from the owner is that if you buy one you have to buy the others so it is a package deal. We think there is something we can accomplish up at Parkwood and Pegram. Secondly, clearly this was identified as a blighted influence. It is a closed non-conforming use so there is policy there to do that, as well as not that one single family house will bring back this entire block here, but it begins ED & Planning Committee Meeting Summary for May 21, 2008 Page 6 ______________________________________________________________________________________ to bring you back to what your plan is, which is to have residential in this area. You have a number of different policy initiatives or policy issues this will accomplish. Flynn: We have some additional opportunities, however, we don’t really have recommendations on these except for the Stewart & Perina one which does not involve any purchase. We also looked at Walker’s Grocery at the corner of Belmont Avenue and Pegram Street. We talked to the Historic Landmark Commission about this and it turns out that this is one of the very few surviving mercantile buildings of this type in Charlotte. They do have an interest in pursuing a purchase of this store. We did have it appraised and it appraises at $73,000. The owner is asking more and we don’t know how much more, but we think that it is worthwhile to continue the conversations with the Historic Landmark Commission to see if there is something that could be done here. Once again, we are sort of asking if that is okay for us to continue or is that something you want us to keep working on. Certainly, we have had conversations with Dan Morrill and he would like to continue the conversation in that regard. It does remove blight and it supports historic renovation which are things that might look pretty interesting there. The fact that Fatback Queens sits directly behind this structure so this too, you can’t really do one without doing the other. We would also want to be talking to Historic Properties Commission about the possible purchase of Fatback Queen by them or in some collaborative partnership with them. We look at that store and see something and the Historic Properties people look at it and say, well if you take that façade off, there might be something really interesting. There could be some old bones of the neighborhood which would be pretty nice to have. The benefits would be to support historic preservation, remove a nonconforming use, but once again we would like to continue the conversations with Historic Landmarks Commission and bring that back to the Committee if that is okay. On Stewart and Perina on Belmont Avenue, it is a convenience store under single ownership with three adjacent parcels. They have the desire to close the convenience store and redevelop it into a residential retail use by combining that with the other three parcels. We’ve had Planning look at that in terms of how that would fit with the Plan, however, there are lot size issues with that. We have to look at consistency with the Belmont Plan and a site plan, but it would require a rezoning. It would require a Council action in order to accomplish that. I’ll let Debra speak to that if there any questions about that. Planning staff has worked with the owners and are beginning to look at that and they have determined it would take a rezoning, which I think Planning staff would say yes to but there are some restrictions around site plan and parking issues I think. Campbell: I don’t know if we have a location map that we could give them or a contact … The reason I would like to have a contact is some of you know this is really in the heart of Belmont and that most all of the other uses, other than the fact that if this were to be redeveloped, it is more density single family, a little bit of multifamily, but for the most part it is all single family. Small parcels abutting adjacent to single family zoned land, we really want to manage parking, that transition and again, it is really right ED & Planning Committee Meeting Summary for May 21, 2008 Page 7 ______________________________________________________________________________________ in the heart of the neighborhood. Obviously, it is not zoned appropriately, it is a non-conforming use and that the zoning possibly something with a conditional plan and probably would have to be like an urban residential, urban commercial district. It would take something for us to relax if they truly wanted to go to a mixture of uses. Lassiter: Let me make sure I understand these adjacent parcels. The Walker’s Grocery is no longer in use? Drayton: No, it is boarded up. Lassiter: Fatback Queen is in use? Drayton: Yes, operating part of the time at night as Advanced Food and … Lassiter: The Stewart and Perina Convenience Store is operational? Drayton: Yes, it is open and sits on B-1 land. Lassiter: It is really not non-conforming other than it’s got parking issues. Campbell:Actually it is non-conforming. It is zoned R-5. Lassiter: We got into this issue, as I recall, from problems of open convenience stores that were drawing other kinds of activity to them. Now we are talking about open land, buying closed stores and working with one operating facility and one partially operating facility that goes back to Anthony’s question, from a policy standpoint where are we here. I would think that we could make a comparable assessment of a dozen other neighborhoods within a two-mile radius of Trade and Tryon Street that have similar kinds of boarded up non-conforming facilities in them that could not be reopened and short of vagrancy and perhaps some criminal transactions, we are not isolating them for acquisition for redevelopment. Is that accurate? Campbell:Yes, in terms of could we find other in town communities that have comparable challenges and conditions, absolutely, we could. When we did the Belmont Area Plan, we talked about the future of Belmont and the ability to try to stabilize it. If you recall the history of Belmont, we have been in Belmont with the map and almost every Federal program you can name and when we try to skirt around the edges of truly stabilizing the community and I think the Belmont Plan really pushes us toward a stabilization strategy. It is probably asking for some, I would say not neat things, because if we take the Westover Shopping Center for example, I think this strategy looks similar. We had a shopping center that was going down and when we went through the process and we literally asked the community – we had to prioritize implementation because we never go out and promise a community that we are going to deliver everything that a plan says. It is almost impossible, but if the public had the opportunity from the public sector’s perspective, they said help us with these convenience stores. That was just the consistent message. The reason being 60% to 70% of all the crime problems, the destabilization elements were within even the closed buildings because people would gravitate to those buildings and do whatever it is they need to do. We weren’t trying to paint a negative brush as it relates to the convenience stores, it was just the reality of the information that we got back from the neighborhood. I think the strategy is how do we strategically identify areas within the community that are in two of these cases, not on the fringe of the neighborhood, but in the middle of the neighborhood and try to stabilize those and maybe even encourage a reuse. The Economic ED & Planning Committee Meeting Summary for May 21, 2008 Page 8 ______________________________________________________________________________________ Development strategy said, we don’t want to penalize this business operator who may own a convenience store. Maybe we can partner and recreate so that you have the people that are there also benefiting from a revitalization effort. That is generally what this strategy is, I don’t want to say buy-out, but I would say partnership with the convenience stores that are property owners for which they are about. Foxx: With that content, a couple of concerns that I have, that I need to request and get a reaction from you on. I have seen some reports and studies that were not as … where the very points that you related can be raised by the community …. I need some way of understanding the extent to which the market is going to take care of some of this stuff for us versus what needs public addressing to change. That is one issue. The second issue is, after we do this what are the outcomes. Campbell: The first one, in terms of will the market take care of this, maybe. It depends on how patient we are. It depends on how patient residents are. This has been a neighborhood venture. They were on a downward cycle for 30 or 40 years and I don’t know if there is a whole lot of patience. It almost a chicken or an egg. Will we be able to continue to maintain the revitalization process when you have these type of elements in the community? We can do it on the edges and that is where we’ve seen a lot of redevelopment occur. On the edges. If you can get close to Plaza/Midwood, if you can get close to Optimist Park and Davidson, that will happen. This is in the interior of Belmont so if our goal is truly to help the people who truly live in Belmont today, I think these types of strategies really reach that population. I believe on the edges and fringes of Belmont it will be taken care of by the private sector. That is my opinion and Tom may have something different. Flynn: Well, looking at Parkwood and Pegram intersection, we showed you a concept plan. We proforma out what we might expect and talked to Lat Purser about it, talked to Bob Sweeney about it and the concept we showed you that had all the retail there in today’s market was still going to require significant land write down and at a subsidy by the City, a second loan and a very reduced interest rate in a second position in order to make it happen. Probably about a million or million and a half dollars worth of City subsidy in today’s market. I think that once again gets to where Debra is, in today’s market establishing better retail even on the fringes is going to take the City to be a gap financer. Is that going to change in 5 to 10 years, probably. I think those are the choices you have and to get to your second question, what we have then, at least on Park and Pegram is the hope to have a catalyst project in that area to sort of move the market in that direction. On these interior ones, if we were able to work with this and have a historic renovation here, I think there could be some very neat old bones of this community. Will this be too massive redevelopment in here, no, but is another little piece of the puzzle that helps this community move forward. Campbell: Would our goal really be to present massive redevelopment because we do have a neighborhood with generally affordable now. I hope a personal commitment to Belmont from the perspective of being out there for someone, and hearing those citizens and those residents say do something to help us because we have been here and have been through ED & Planning Committee Meeting Summary for May 21, 2008 Page 9 ______________________________________________________________________________________ Flynn: Lassiter: Carter: Kinsey: Foxx: Flynn: Foxx: Flynn: Lassiter: all the changes, all of your programs and we are still here and we want to be here. We want to be close to uptown. We want to have the conveniences, yes we want change, but we want to be able to afford to live here. If we were to go forward with this in terms of acquiring Parkwood and Pegram and acquiring Josh’s, doing all of that, we took out Stewart and Perina, that is actually no costs, Walker’s we don’t know whether that will happen or not, but you are looking at a total project of around half-million which leaves you a little bit more than $560,000 left out of this $1.1 million. If we are able to work anything out with the Historic Landmark Commission, that would come out as well. I hear from the Committee that you need some more information. You clearly want to have a better understanding of all of the price points and appraisal points around Parkwood and Pegram. I think you want to have a better understanding of the appraised value and how the appraiser got to the appraised value of that. I think what I want to try to do is give you a little bit of direction if we can come up with that of what we would like you to do or not do. I’m not sure we’ve been exceptionally clear about what we think is the right thing to do. Parkwood/Pegram and Josh’s is kind of tied together. Currently, you cannot get control of that one intersection without buying the remaining property. We have seen what that costs to do that and there may be some other finer point on it, but what is the sense of the Committee, non binding, but direction to staff to continue to work on that issue? Do we want to continue to work on it or do we think it is not worth the effort. I think Ms. Campbell’s statement was absolutely on target. Preserve a very important community approximate to uptown. The Parkwood/Pegram parcel really does benefit. It just shows here Belmont, but it backs up to Optimist Park so it really does benefit a larger geographical section than just Belmont because of where it is located. I support staff continuing to work through this. I would like to see parcel by parcel, what the appraisal is and what is being asked by the owners. I would also like to know whether you all have done an analysis of the value of that block you were showing if it were unified in ownership. We can show you that. The last question is what kind of detail or other issues you see happening on that block? How does the City propose to dispose of that property? What process would be used to actually get that into the hands of a private sector developer to make a higher and better use of that property? To answer a couple of those questions, when we come back, we will make sure that Bob Sweeney from CMDC can be here to talk about that. I think we ought to be really careful how we go about that process and Josh’s is an issue, but if in fact there is going to be some redevelopment effort and an attempt to use public funds to stimulate that and then flit it back out or some joint venture with other parcels that are adjacent to it who may want to be a participant, I would like to hear whether CMDC is interested in playing the lead role as opposed to us playing the lead role. That is a pure redevelopment question and is way away from how this came to us. We can talk about it, but more appropriately, it is a CMDC issue and not a City of Charlotte real estate issue or City of Charlotte ED & Planning Committee Meeting Summary for May 21, 2008 Page 10 ______________________________________________________________________________________ Planning issue. Somebody has got to be a lead agency in trying to do that and I would like for them to step in if they are interested in doing that, support them and if they are not, I think we need to rethink our decision about it. Foxx: I just want to respond to that. I do think it has been unfortunate that this issue has gotten as negative as it has gotten because I think what that is doing sounds like what the neighborhood has wanted. Lassiter: Dose that help you all? Flynn: Yes it does. Lassiter: What is the Community’s sense about Walker’s Grocery? Kinsey: I like that parcel and I’ve driven by it every Sunday for years going to Allen Street Baptist Church, but the Landmarks Committee has money and I’m not real excited about funding something for this. They have money that they can sink into it. Flynn: Exactly, and they are willing to do that if they can get it at the right price. Kinsey: I don’t think we should subsidize … Shull: They plan to purchase it out of their revolving money. Flynn: Okay to continue to work with them and bring that back. Kinsey: Tell me again where we have that zero. Lassiter: Zero is the redevelopment plan that the idea is that it primarily works from a planning standpoint to come up with a way to assemble adjoining parcels and come up with a residential/commercial plan that could be live/work mixed-use something that would take into account all of that and we would work on the planning side to help them come up with a favorable plan to come forward. Carter: I sense an underlying complete plan and it follows from what we have done before in prior action as I understand it. I am wondering if there is anything we need to do with regards to planning to look to the future of this entire area. One of my points of concern is justification and maintaining affordable housing in the area approximate to our Center City. If you can look forward …. Campbell: One of the things that Neighborhood Development is doing … as part of the analysis we are doing…we are tracking… Woodcock: The Housing Authority is also … 191 units … to preserve affordable housing in Belmont. Hopefully the housing value will go up, but there will be affordable housing in Belmont. Campbell: I will say we are tracking it and trying to add in new units. Kinsey: Belmont has had so much low income housing for so many years that I think if the benefit for the more affordable the higher come in. I want a mix there because if we have too many low income housing we are going right back to where we’ve been for years and years. I think you have to be very careful there. Lassiter: I think what we have technically done is we have walked away from the issue of purchasing operating convenience stores and trying to remedy the community of whatever good or bad they provide and now have given staff direction to be more surgical in terms of a planning and neighborhood development strategy that we then tool and partner, focused on particular points and redevelopment points and away from what has been a pool of funds available to take out operating businesses and replace them with something … Is that accurate? ED & Planning Committee Meeting Summary for May 21, 2008 Page 11 ______________________________________________________________________________________ Flynn: Lassiter: Yes. It will maybe make the Council happy, but they are also going to have to buy into the fact that we taken a different direction. Flynn: Just to clarify one thing on the Walker’s Grocery – that should read Walker’s Grocery/Fatback Queen, so we would wrap those two together. Lassiter: There are lots more places like this and what I would like to think we are doing is we are piloting some techniques that are going to need to come into play as we look at other kinds of issues in other neighborhoods where you did not have restrictions about particular kinds of development as the neighborhood developed and those have created similar issues for those neighborhoods. In some cases, they have been issues of preventing quality development. Other cases have been issues of criminal activity, loitering and whatever else. I think it is a good exercise to kind of go through this and see what we have learned so that as we look at future small area plans we try to identify some of these locations to see if there is similar ways to address them, based upon what we have learned. Foxx: I want to make sure that I am clear on my own personal perspective on this. I don’t know that we are moving away from what was proposed last time. I think we are refining it, but what I view happened was that we had this perception that the City was going in and forcing people to sell stores, opened stores or close stores. We are now saying we are going to buy the stores which people are willing to sell which I thought was the whole plan anyway. I just think maybe it will sound better in the newspaper, but I feel like this is a variation of what you all were thinking. Kimble: It is really the third evolution, not just the second, and I think we are getting to where everybody’s comfort level is starting to take shape, but we have more work to do. Campbell: I think what you all did for us and our thinking was to help us be a lot more technical, a lot more strategic about this issue of would we have something that is creating a blight in the community and how do we manage that. How do we respond to that? Kinsey: When this is brought back to us could we have these maps on boards or something so we could read them better? I can’t read this. Flynn: We will have a big board with the maps that are highlighted. II. Subject: Residential Pedestrian Lighting Process John Lassiter, Chair: This initiative has been in front of us and we need to come back with some thoughts from Council and we have talked about the idea and had some preliminary information, but we need to have an update on where this is. (Barry Mosley used a PowerPoint for his presentation to the Committee) This item has been before the Committee a couple times and we are asked to make some additional research happen so we will go through the slides and try to jog your memory on why we are here regarding this issue and some of the things we have come across. The purpose of the project was to take at a look at the information on the possibility of requiring pedestrian scale and decorative lighting in single family residential development. Also, we wanted to take a look at the possibility of discontinuing the use of wood poles in single family residential areas for street lighting. In July 2006, City Council recommended staff take a look into this particular issue and evaluate our existing ordinances and policies to see what we ED & Planning Committee Meeting Summary for May 21, 2008 Page 12 ______________________________________________________________________________________ have in relation to the corporate quadrants in those ordinances. In February, City Council recommended that this particular project get further study and sent it to this particular body. In April 2007, staff presented the finding of the report to this group and in September 2007 ,we received some additional direction and scope of work from this body to proceed and move on to conduct some additional research for this information. In February 2008, we presented the information to you and there was some additional questions that arose in that meeting, one of which was which part of Raleigh’s code addresses street and pedestrian lighting? Who pays for pedestrian scale lighting and what are the costs? Questions/Answers/Comments Carter: If you replace a wooden pole, do you have to replace the others along that block? If there is a storm water improvement crosses at a point and there are three poles in the block, do you replace one with aluminum and the other two are wood? Mosley: We are looking at existing neighborhoods and I had a conversation with a staff person in Davidson and what was stated was that in addition to requiring new residential developments to have pedestrian scale lighting, there is also underground utilities. In those existing communities, most of them do not have underground utilities so if you go in and develop one parcel within the community, then no, you are not required to do that you just go with the existing. I think in situations where the community wants it that is a different situation and they can probably request it and pay for certain things to happen that way. Mitchell: In Davidson and Rock Hill what are the new standards for new residential development – no to wooden poles, but what are the standards? Mosley: That is something I didn’t further explain in Davidson. With this procedure in Davidson through their new subdivision or residential development, developers have been willing to do this, but they do not have anything in their ordinances that require them to put those poles in. Right now it is just the willingness of the developer to say okay we are going to put in pedestrian scale lighting, but there is no teeth for the City to back it where you have to do that. Mitchell: What about Rockhill? Mosley: I am not certain about Rock Hill and will have to give them a call back to see what that is. Mitchell: I would be interested to find out the new standards for those two cities. Kinsey: I know what the wooden poles look like, but if we were to require this would these poles be fiberglass and would they be in residential character, would they be decorative or be just plain old utilitarian poles? I had a wooden pole as one of those old metal poles that you see on the field. Mosley: I think in most cases where we talked to the various cities and towns is that some of them are using the fiberglass poles. Whether they are decorative or not probably would be left up to the decision of the City Council because there is a cost associated with that and I think the fiberglass, for example, with Raleigh they have two options that they ED & Planning Committee Meeting Summary for May 21, 2008 Page 13 ______________________________________________________________________________________ Kinsey: Mosley: Mosley: Carter: Mosley: Carter: Mosley: Carter: Lassiter: Kimble: Mosley: Mitchell: Mosley: Mitchell: Mosley: Mosley: Carter: Mosley: Carter: Mosley: can use, but the poles themselves they have a fiberglass that is just a regular gray pole - $250. If you want a black pole it is $1,690, so that is the difference in costs. But they are both fiberglass? Yes. (Continued his presentation with slides on Page 4) Your $600,000 monthly costs – is that electricity or is that installing the street lights? That is for the electricity costs that we currently pay per month to light the city. It is neighborhood streets, but not our roadways run by the State? I want to say yes to that but I think that is probably a much larger number. I can double check on that. I got that information from CDOT and I think the way the question was phrased to them is what are we paying for pedestrian scale residential lighting and that was the number they gave us. I can also see if that includes other items of the streets. It would be interesting to see the comparison. I would guess that our lighting bill for all of the City streets and any State roads that we maintain. It would be Randolph, Providence, Monroe and all the neighborhood streets. I probably would not include I-77 or I-277. They don’t work anyway so there is no electricity used. It is the historical costs. (Continued his presentation with slides on Page 5) The fiberglass poles, we don’t pedscape the Rozzelles Ferry Road, is that example the fiberglass decorative pole? I wish I knew, but I’m not familiar with that pole. I think it would be helpful for the Committee if next time we have some pictures of what type of pole we are talking about. I see the Rozzelles Ferry and I don’t know if it is fiberglass, so if we could have some pictures that would help me get an understanding of what is the fiberglass pole and the gray pole. Versus maybe a metal and I think sometimes they use concrete or something like that. (Continued the presentation) Have we looked into green lighting and the costs in the sense of the light bulbs that are conforming to the green? No. That might be something we should look at. Remember when solar power was not appropriate for I-277 because it was not as strong as it needed to be. That would also be important … In some of our research we did find that certain cities do have their lighting policies and there was concern about lights just being emitted in the air and the pollution so they have various standards and regulations to take care of that. Some of those are dealing with those various types of light bulbs and the space that they cover. I guess when you get into a more detailed study the Engineering Department ED & Planning Committee Meeting Summary for May 21, 2008 Page 14 ______________________________________________________________________________________ Carter: Lassiter: Carter: Foxx: Mosley: Foxx: Campbell: Mosley: Foxx: Lassiter: Kimble: Lassiter: or the Utility Department takes a look and considers that. In most City stuff they put policies together so they can develop a real deal. That might be an issue that the Environment Committee could consider. There might be energy between these two Committees to look at the impact of environmental impact from the aspect of light pollution. Bear in mind, we are not doing this because it is necessary to see what we are going to do, we are doing it to see if it is affordable and it has been cost prohibited to date and my expectation is if you then shift to a more energy friendly lighting you can put another couple zeros on your costs. The initial investment perhaps … the long-term costs might help. This is sort of on the other end of the green spectrum, on the electricity use side, do we have a policy or a practice when it comes to Duke Energy or any of the various power lines to go back and look at the lighting structure that we have? From what I understand is that Duke Energy currently supplies the City with wood poles at no cost and I think if the City requests Duke Energy to do those things that they will look at it and do make the necessary changes. At this point in time, I don’t think there is a policy or anything in place to say that we need to replace a pole here or there when you go out to put in utility lines. I think that would be an opportunity to partner with Duke Energy and perhaps the style of the lighting as well as whatever is going as well as maybe some green options. We would have to pay for that. Yes, from my conversation we would have to pay for that because they now install the wood poles at no costs. The only time that there may be some costs associated with it is when there are some extenuating circumstances when they are digging and some other things happen and then that costs is passed on to the City. If it is just a standard installation there is no costs and we pay for the power. I really would like to know about their policy because as I go around the City, you can almost tell the economic status of an area based on whether they have power lines running above ground versus below ground. I don’t know if Duke has some retrofit policy that they are pursuing or whatever, but I do think there may be some ways for us to work with them, even if they are willing to spend what they are spending on up fits and if we were looking at paying an increment above that for some perhaps higher up fits, but it is as least worth talking to them. Back when I was on the Planning Commission, I raised this very issue relative to how do you get more underground and be engaged with the operations people at Duke Energy and they are more than willing to put stuff underground if you are willing to pay for it. The cost then was staggering. After your 2002 ice storm, the Council took that issue up again and we reaffirmed even higher costs the next time. What has happened is newer neighborhoods at certain price points that development pays the costs of getting utilities underground and ED & Planning Committee Meeting Summary for May 21, 2008 Page 15 ______________________________________________________________________________________ Foxx: Lassiter: Kimble: Lassiter: Mitchell: Mosley: Kimble: Mitchell: Lassiter: Mitchell: Lassiter: Mitchell: Mosley: there may be some older neighborhoods that have done that and paid the cost because it is pretty punishing to take all the pieces coming off the back of the house just to figure out how to cut through trees and gardens and everything so it really becomes problematic. My suspicion is that we will see a similar answer and it is a cost no matter where you are, in most cases it is prohibited. Just to be clear on what the question is, what I was trying to frame the question around was whether they have some retrofit policy to take lines above ground or below ground. Their plan is to get your trees out of the way and let us clear-cut through them so we can get to those things that we’ve got to get power to. There is a long standing policy and practice between the City and Duke because they have the franchise going back to like 1908 and now when we go into redevelopment and retrofit, the City pays 60% of burying and they pay 40% of burying so there is a practice and a policy in redevelopment and retrofit areas where we’re both wanting to go in and make changes in that area. The point you’re making is what about in neighborhoods, and that is the difficulty. Not a lot of that gets done in neighborhoods, it is more in redevelopment corridors. What has happened is now that … it is cheaper for Duke to do it from the front and go right down the Right-of-Way and increasingly as areas redevelop or property develops the access point is the back side so it does not work from the street side. Who set the standard for the wooden pole? Duke Energy told us this is the free pole we are going to give you or the City said we want wooden poles. Who set the standard? Have we ever revisited the standard wooden pole? I think it comes down to economics again. You are getting something for free and then you get the service. My suspicion is the wood pole standard is designated by Duke Energy, not by the City of Charlotte. My issue is why would we accept the standard, times have changed in communities and I can understand we wouldn’t have metal and fiberglass back in the early 60’s, but we had an abundance of woods, we cut down trees. Now the communities have changed and the City has changed so why has the standard not changed? Some of my frustration is we are accepting the wooden pole and Duke keeps giving us the wooden poles. We need to say why the pole can’t be metal. It is not free – they bought the poles and the poles are loaded into yours and my energy rates. So why can’t they give us a fiberglass pole? Then they will tell you your power rate is going X amount to recover the costs so it is not free. We could say it has to be decorative poles in uptown and Duke will provide it, but they will adjust the power rates to reflect that. I would love to have some discussion of this. (Continued his presentation with Summary of Key Findings and Next Steps) ED & Planning Committee Meeting Summary for May 21, 2008 Page 16 ______________________________________________________________________________________ Mitchell: Kinsey: Lassiter: Foxx: Campbell: Let me go to possible Option #2 because I have had several conversations with developers and those developers have been inclined to sit down with staff and talk about pedestrian lighting. You know Cambridge, a lot of their properties do provide decorative lighting for their neighborhoods because it sells and it is more aesthetic so I am not ready to throw this baby out with the water because personally I’m not a wooden pole fan. I think we are talking about our neighborhoods as the new Charlotte and I think we’ve got to be creative if we are going to provide other ways of bringing quality to our neighborhoods. I’m looking at another option or at least to explore having some of our developers at the table with us. It seems like there is some interest on their part to participate. Developers can do what they want to can’t they? Yes, and if you will recall, when we drove through Peachtree and Windy Ridge they all had decorative lights. The housing community has been putting in decorative poles at their costs so I’m not sure who we are pointing fingers at. If we are talking about is where we are putting them in as part of our road construction, maybe that is the issue, but I’m not sure there is a lot of wood poles going in neighborhood developments because it is a selling feature that they have loaded into the costs. The flip of that if it is neighborhood that the developer don’t pay for it, that costs is going to get passed somewhere and it is going to arguably make the house worth less because it will come with the expense of profit margin on what the developer has built in. Again, none of this is free. I’m not convinced that we’ve got a problem big enough to make any changes. I see three issues, one is green field type development where it seems to be happening already and these things are being addressed in one way or the other. The second is redevelopment like the interior neighborhood redevelopment kind of stuff and even looking at our Neighborhood Improvement Program which does get out to interior aspect, I still wonder whether we are missing an opportunity, since we are often times cutting sidewalks and cutting curb and gutter on those public Right-of-Ways whether there are opportunities to partner to get some of those utility lines buried and perhaps get decorative poles up as a way of improving neighborhood quality. The third one is the corridor stuff where we’ve got a business corridor that is a gateway to the community. The same issue as we are looking at infrastructure opportunities in those corridors, are there ways where we can maybe partner to improve the lighting. I don’t disagree with you John, that on the scale of issues, I don’t know that this one would bump up to … three, but it might be at this point in the conversation, we may find that there is a developer … Would it be possible for us to make one more stab at this and maybe some research for, number one, the business corridor project, because I personally know that every time we do a business corridor project we want it to … and we do all of that as a way to try to clean up as a way to attract a future developer. If we could bring you back some information about that. If you want us to talk to you a little bit about how utilities are being handled now through the subdivision process, ED & Planning Committee Meeting Summary for May 21, 2008 Page 17 ______________________________________________________________________________________ Carter: Lassiter: Campbell: Lassiter: Kimble: Lassiter: Campbell: then we can do that for the commercial, non-residential or residential. I think the third thing, if you were to have some of stakeholders meeting or something like that. I’m trying to think if there is a process underway currently just to get you some…. If you want us to convene a few of these people, but I think that when John mentioned that we are getting it, but we may not be getting it everywhere. For the most part, I think the challenge becomes is it still something that you do voluntarily or do we require it everywhere. Even though these costs may not look big, that margin makes or breaks. We hear if from the developers all the time so it is just one additional expense and costs. I hope we think this more in terms of are there other things in a subdivision, for example, when we went through those foreclosure neighborhoods, rather than decorative street lights, I wish that we could have given them trees, grass seed, a lawn mower. They were all dirt yards so I guess it is in the context of if we want to require something that will truly make a difference in the stability and livability of that community, and that is how we have been approaching this. It is not that we don’t want to do this, it is, is it going to be that margin that really stabilizes or retains the community as a competitive neighborhood long-term. Will decorative lights do that? I don’t know. I thoroughly echo what you are saying, but I think there is one more basic level that I encourage us and that is the grading of these lots. I saw significant erosion that is not controlled when we out to see the last neighborhood. That was totally … and I was absolutely furious. What I would like you to do is broaden this just a little bit, if you want to … folks let’s have that broad discussion that gets to this point of what makes a neighborhood more viable and attractive and gets some comparative thought about that. We all struggle with the starter home neighborhood and depending on where that is in town, it has a very different look. It may be questions of how the sidewalks are constructed, it may be questions about what is required in terms of interest, the kinds of things that you might not see based upon where it is built because the price went $10,000 more or the … attracted a different purchaser. I think that is a reasonable question. It puts all sorts of pressure on home builders, but people are still going to build homes and people will buy homes, and the degree to which we do things in our subdivision ordinance or do things within our zoning code that creates some decision point that we can make policy wise and they reflect the economics of the transaction, I think is a good discussion. We can do that. Is there a consensus that she proceed with those? I did not get a second to your comment relative to an Option 2. I think you have cited an Option 4. I think we need to look at those issues and determine where they fit within our priority line and some of the reality of what is going on so we may have some suggestions that would provide some integration back into varying codes that would control neighborhood development and redevelopment. We will have an emphasis on a statewide … ED & Planning Committee Meeting Summary for May 21, 2008 Page 18 ______________________________________________________________________________________ Lassiter: Kimble: Lassiter: Kimble: Lassiter: II. We are not doing the third item on our agenda. Can we talk about June 4th which is Town Hall Day. We need to reschedule that meeting. We can postpone one week but it is up to you. If we were to move it up that is a conflict for me and it also conflicts with the HAND Committee meeting. Shall we poll you? If you would, poll and see if you can find a date. Subject: Next Meeting The next meeting date is to be determined . The meeting adjourned at 5:20 p.m.