Frankfort City Comprehensive Plan
Charrette 3, March 8, 2006
Ordinances
&
Authorities
Bruce Frankel
Indiana City
Corporation
Ordinances
Zoning
Forms
Impact Fees
Inclusionary Development
Concurrence & Phasing
Tax Policies for Redevelopment
Zoning Forms
Traditional
 Planned Unit
 Form-Based
 Performance
 Combinations of above
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3
ZONING
Tradition
[Euclidean]
Separation by narrow
range of uses and
intensities in “districts”
4
ZONING
Planned Unit

IC 36-7-4-1500
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5
Moderate
mixture of
uses and
intensities
Large parcels
planned and
developed as
a unit
Phasing Plan
Promotes
useful public
spaces + land
conservation
ZONING
Form-Based


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Broad mixture of uses,
separated by intensities
Restrictions center on
permitted forms
Degrees of intensities
[urbanization] moving from
the center
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6
Central business district
form
Inner neighborhood form
Outer neighborhood and
working landscapes forms
ZONING
Form-Based Zoning Principles
7
ZONING
Form-Based Design Components
8
9
ZONING
Steps Toward Form-Based Zoning
1.
Inventory existing conditions of the jurisdiction:
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–
2.
Identify a set of organizing principles for the spatial structure, based on:
–
–
–
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3.
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establishing commercial street design guidelines, with the goal of "shaping the public
space of the street."
Define architectural standards:
–
5.
neighborhood, district, and corridor
Transect, which defines intensity of activity based on the transect zone that applies
Street-system-based regulatory plan
Special purpose zones
Define urban design standards:
–
4.
Street, block and building types
appropriate form and massing of buildings
E.g., building types and frontage types
Illustrate the standards, to make it easier for those who will be implementing
the code.
ZONING
Transect Planning

Andres Duany
–



11
“Transect Planning,” APA Journal, Summer 2002, Vol. 68, No. 3
The Transect is a natural law that can be observed anywhere
and everywhere. A natural law is defined as a principle derived
from observation of nature by right reason and thus ethically
binding in human settlements.
The first appearance of the Transect as an intellectual construct
was the “Valley Section” conceived by Sir Patrick Geddes early
in the 20th century.
Currently promoted by the Congress of New Urbanism
ZONING
Transect Planning

Construct of human habitats
–
–
–
Vary by level and intensity or urban character
Range from natural to urban
Basis for organizing by the components of the built
environment
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12
Building
Lot
Land use
Street
Public space
Etc.
ZONING
Transect Planning
13
ZONING
Transect Planning
14
Transect
Planning
15
ZONING
By City –
New Orleans, Washington, San Francisco
16
ZONING
By City –
Miami, London, Paris
17
ZONING
Examples of Form-Based Zoning
Codes
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18
Chicago [refer to blackboard course doc]
ZONING
Chicago

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19
The 1909 Plan of Chicago is one of the seminal
documents of modern urban planning.
The city’s 1923 zoning ordinance was among the
first in the nation
The 1957 ordinance introduced innovations
Since 1989, more than a dozen major amendments
to the 1957 zoning ordinance—including provisions
designed to protect the riverfront, improve
landscaping, and limit building height.
ZONING
Preamble to the Form-Based Chicago
Zoning Ordinance
20

Chicago is a city of neighborhoods— and the vast majority of its
residential areas have a very consistent scale and character.

A new zoning ordinance should reinforce these established patterns,
which will help stabilize property values and encourage continued
investment.

Most of the city’s low- to moderate-density neighborhoods were built
prior to any zoning regulations. Builders used common development
practices for each area. Front and rear yards on any given block were
generally of an equal size. Yards were used as yards, not as pavedover parking pads. Building heights were matched to the surrounding
structures, not to what could be squeezed out of regulatory loopholes.
During the past decade, however, many developments have deviated
from those traditions.
ZONING
Principles –
Residential Neighborhoods


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21
Replace the bulk control formulas (FAR) used in some
residential districts with building height, setback and coverage
limits.
Eliminate front yard interruptions [“gap tooth effect”] —such as
driveways, blank walls, and patio pits—while ensuring that
residential buildings have consistent setbacks in both front and
rear yards.
Remove the regulation that encourages high-rise residential
buildings in areas where mid-rise development would be more
compatible.
ZONING
Performance

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22
Broad or Narrow range of
uses
Intensities and some uses
conditioned on
“performance”
Performance = Impact on
 neighboring properties
 neighborhood
 city as a whole
Evaluation of impacts
[positive and negative]
constitutes a “grade” [e.g.,
75 of 100]
Very sophisticated

While traditional zoning specifies
allowable land uses in each district,
performance zoning specifies
standards of land use intensity that
are acceptable in each district.
Performance zoning focuses on the
performance of the parcel and how
it impacts adjacent lands and public
facilities, not on the use of the land.
This gives municipalities and
developers more flexibility in
designing projects, because the use
of a property is not restricted as
long as the impacts to the
surrounding land are not negative
(as defined in the specific
regulation).
Performance Standards

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Performance Zoning Model Ordinance Bucks County,
Pennsylvania
Natural Resource Protection Standards
Open Space & Recreational Standards [NRPA]
Architectural Design Standards
Community Facilities and Associated Cost Responsibilities
Fiscal Impact e.g.,
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
Other Public Amenities e.g.,
–
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23
Offsite infrastructure
School District Costs
–
–
Art
Mixed Use [commercial and residential]
Non-gated [public access]
TOD [transit]
ZONING
Performance
24
Ordinance
“Concurrence” & Phasing


25
May require more broadly defined
infrastructure in place at time of new
development
E.g., public schools, police, fire and other
essential facilities and services
Ordinance
Impact Fee


IC 36-7-4-1300
Impact
–
Municipal or County Capital Budget only



Infrastructure hard [“direct”] and soft [“indirect”] costs
Land acquisition cost
Associated cost of
–
–
–
–
–
Infrastructure


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–
Sewer/ water/ drainage
Thoroughfare
Recreation
Calculate fee in accord with IC 36-1-3-8[6] and 7-4-1318-et.seq

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Planning [including comprehensive plan update]
Legal
Administrative
Other
pro rata impact over 10 years
Allows reduced fee for affordable housing
Resulting schedule of fee by type and intensity of development and an aggregate fee of every
impact
Ordinance
Inclusionary Development



Establish districts for inclusionary development OR
Floating district as a conditional use
Exchange
–
–

Common features
–
–
–
–
–

Required fee simple ownership or required rental [not permitted on market rate units]
Indistinguishable façade and grounds from market rate units
Price controls for a period of time [e.g., 30 or more years]
Household income eligibility at time of initial occupancy
Affordable at 50% and 80% of County Median Income
Merits
–
–
–
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Set-aside [e.g., 20% fee simple affordable d.u.’s]
Density bonus and other affirmative measures
Controls form and tenancy of subsidized housing and integrates into community
Developer provides subsidy
Does it produce MORE affordable housing?
Does it produce BETTER affordable housing?
Innovative Affordable Housing

Pyatok’s Adaptive Reuse of
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–
28
Big Box Retail
Industrial
Michael Pyatok
Break Up the Box
Outside Walled Security
Interior Courtyard
Apartments
29
Industrial to Live-Work Lofts

Potrero Square Lofts
San Francisco, California
Formerly an industrial building in
San Francisco's Potrero Square
neighborhood, this brick structure
was transformed to accommodate
live-work lofts. Each loft has
double height spaces and
mezzanines. Five courtyards are
carved into the mass of the 100year structure to increase light
and open space for the new
occupants and a garage and
elevator are included to meet
their needs. The courts are
carefully landscaped as surprising
oases protected by a tough, brick
fortress like exterior. Each unit
has a large window facing a
street and larger windows facing
one or more of the interior courts.
30
Awards
Grand Award for best
Rehabilitation or Conversion
1994, Gold Nugget Awards,
Pacific Coast Builders
Conference
Mixed Use Downtown
Includes Affordable Housing

Swan's Marketplace
Oakland, California
The renovation of this
historic downtown Market
Hall by the non-profit East
Bay Asian Local
Development Corporation
includes a new fresh food
market hall, restaurants,
street oriented retail, 20
Cohousing condominium
units and common house,
18 affordable rental units,
live/work space,
commercial office space,
on-site parking and the
Museum of Children's Art.
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Downtown Oakland
continued
33
Tax Ordinance
Tax Innovations for Redevelopment
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TIF [Tax Increment Financing]
Special Assessment
Land Tax
Tax Abatement
Tax Ordinance
TIF [Tax Increment Financing]

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
Establish a redevelopment district
Set up a trust account
Capture increment in taxes from private
improvements and market value appreciation
[accounts for public improvements]
Reinvest the added taxes of development/
redevelopment back into the district
District need not be contiguous
–

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35
SR 28 improvements support the downtown
Can issue public bonds based on projected TIF
revenue stream
Mainstay of Circle Center Square with Simon
Properties
Tax Ordinance
Special Assessment


Used for Code violations or abrogation of
HOA responsibilities
Sequence:
–
–
–
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36
City makes Improvements
Impose Special Assessment
Tax Default and Foreclosure
Tax Redemption
Tax Ordinance
Land Tax


Convert Property Tax in a Redevelopment
area to
a tax on land only
–

Features
–
–
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[based on size and location, not improvements]
Aggregate tax bill remains the same initially
Induces private improvements by removing the
tax penalty; actually, if there is a penalty it is on
not making improvements
Tax Ordinance
Tax Abatement

Tax Abatement
–
Phased-in

–
Special assessment

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As in “agricultural assessment”
But, could apply to other categories [e.g., historic districts]
PILOT [Payment In-Lieu Of Taxes]
–
–
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To induce redevelopment district improvements on private
properties
Removal from the property tax rolls
PILOT to general purpose municipal government
Tax Ordinance
Types of Tax Abatements
Brownfield

Brownfield Revitalization Zone Tax
Abatement
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–
–
IC 6-1.1-42
Assessed valuation deduction until the zone
“expires”
Amount of Deduction
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3-Year [100%; 66%; 33%]
6-Year [100%;85%;66%;50%;34%;17%]
10-Year [100% and then decrements of 5-10%]
OR Local trust of State Taxes for revenue
collected on redeveloped brownfield
Tax Ordinance
Deduction for Rehabilitation or Redevelopment of
Real Property in Economic Development Area

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IC 6-1.1-12.1
Limited Economic Development Area to 10%
of the area within corporate boundary
Excluded facilities [e.g., golf courses; retail
food and beverage; alcoholic sales; auto
sales]
Types of Deductions
–
40
1-Year through 10 Years
Tax Ordinance
Other

Enterprise Zone Deduction of 1 to 10 Years
–
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IC 6-1.1-45
Historic District Deduction
Authorities & Partners
Corporate
Sponsors
Improvement Authorities
Private Nonprofit Partners
Corporate-Sponsored Housing
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Mortgage Guarantees
Employees
Neighborhood-Based to raise market values
West-Philadelphia Initiative
West Philadelphia Initiative

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President Judith Rodin
Urban Land Institute's Award for Excellence
Components
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University Square, a 300,000-square-foot mixed-use project that boasts a
luxury hotel, the Penn bookstore, numerous retail amenities, and valuable
green space
Hamilton Square, a 75,000-square-foot project featuring a specialty
grocer, theater complex, and parking facility
The Left Bank, a 700,000-square-foot, previously blighted warehouse that
the university acquired and converted into apartment units, retail, and
offices
Penn Alexander Community School for students in grades pre-K-8
Buy West Philadelphia fiscal year 2005 alone, Penn purchased over $70
million in products and services from West Philadelphia based suppliers,
bringing the 10-year total of Buy West Philadelphia to $544.8 million.
Mortgage Guarantees to both faculty and staff to attract residents into the
neighborhood.
45
Authority
Improvement Authorities

Housing
–

Redevelopment
–

IC 36-7-14-25
Economic Development
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46
IC 36-7-18-19
IC 36-7-11.9-27
Private Non-Profit Instruments


IRC Section 501c3
CHDO [Community Housing Development
Organization]
–
–
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CDC [Community Development Corporation]
CDFI [Community Development Financial Institution]
–
–
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47
LIHTC
Home Program of HUD
Community Development Banking and Financial Institutions
Act of 1994, as amended (12 U.S.C. 4701 et seq.)
Federal Credit Unions
NMTC
Housing Authority

Section 8 Housing Choice Voucher
–
–
–
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Lafayette HA issues > 1,000
Lafayette, W. Lafayette and 5 mile radius
Edie Pierce-Thomas - Director
Tax-Exempt Bonds for Affordable Housing
Low Income Housing Tax Credit Allocation
Redevelopment
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Assemble Parcels in blighted area
Sell under performance contract to developer
OR serve as the developer
Issue Tax-Exempt Bonds
Lafayette Redevelopment Commission
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49
Dennis Carson - Redevelopment Director
Economic Development

Issue Bonds
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Self-Liquidating and Not General Obligation Notes
Conduit Bonding [Letter of Credit, not the Authority, guarantees]
Taxable Bonds
Tax-Exempt Industrial Revenue Bonds
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<= $10M
< $2M with IFA’s Small Bond program
<= $250K for first time farmers on capital assets
<= 40 years
APR 65-75% of prime
100% LTC
Eligible Activities
–
–
–
–
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50
Manufacturing plants & equipment
Pollution control facilities
Qualified residential rental facilities
501[c][3] organizations
Requires both EDA and City Council “inducement resolutions”
Coordinate with Municipal and County Tax Abatement and Other Incentives
New Market Tax Credit Program

Initiative of the Federal CDFI [Community Development Financial Institutions]
–
–
Riegle Community Development Banking and Financial Institutions Act of 1994, and
administered by Treasury
7 CDFI’s in Indiana investing > $4.8M
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2 Indianapolis, e.g., Indiana Redevelopment Corporation serves entire state
2 Lafayette
2 Fort Wayne
Only in census tracts of >= 20% poverty
Tax credit totals 39% over 7 years
Forms of subordinated, low cost debt or joint equity
Combine with Historic Tax Credits, Enterprise/ Empowerment Zone benefits
Leveraging of $21/$1
Option: Frankfort creates a CDE [Community Development Entity] as a nonprofit
ShoreBank

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52
ShoreBank was the first and is the largest
community development bank holding company in
the U.S.
$1.4 billion corporation with for-profit and non-profit
subsidiaries in Chicago, Cleveland, Detroit, the
Pacific Northwest and the Upper Peninsula of
Michigan
7054 S. Jeffery Blvd.
Chicago, IL 60649
773.288.1000 phone
info@shorebankcorp.com