BPMS CASCADES Agenda Item 12 Page 1

12August 8, 2012 Public Hearing

APPLICANT & PROPERTY OWNER:

BPMS CASCADES, LLC & BPMS

CASCADES 2, LLC

STAFF PLANNER: Carolyn A.K. SmithREQUEST: Modification of Conditional Change of Zoning for a change in zoning request that was originally approved by the City Council in 2006 and then modified in 2008. ADDRESS / DESCRIPTION: Northwest corner of Centerville Turnpike and Lynnhaven Parkway GPIN: 14549813900000 14549854270000

ELECTION DISTRICT: CENTERVILLE

SITE SIZE: 12.75 acres

AICUZ: Less than 65 dB DNL

History: The Conditional Rezoning from B-2 Community Business District to B-4 Mixed Use District was approved by the City Council on December 12, 2006. That entire proffer agreement was superseded by a new project, approved in 2008, that kept the B-4 zoning in place but changed the building design, reduced the floor area of retail, and increased the number of dwelling units. This included six residential multifamily buildings and one mixed-use building (Building 1) for a total of 226 dwelling units (17 units per acre) and 25,000 square feet of commercial space. An amendment was proposed, but indefinitely deferred, in 2009 to permit a 24-hour retail operation in Building 1. Building 1 has been designated as a mixed use building since the plan’s inception in 2006. Request: The applicant proposed to modify the proffers of the Conditional Zoning Agreement (CZA) to replace the retail floor area on the first floor of Building 1 with up to 26 residential units. There will be no exterior modifications to the buildings, and no additional plant material is planned. It is possible that some decking and decorative fencing may be installed to create some private space for each new ground floor living unit. It is the intent of the applicant to “cluster” the units within the same location of the first floor to the extent possible, but the applicant would like to have the flexibility to convert any retail unit to residential. Depending on the ultimate location of the residential units, entry will be either by direct access from the parking lot, or, if units are clustered, from an interior corridor within the building. These new

SUMMARY OF REQUEST

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multifamily units will have a range of sizes based upon the physical layout of the existing building and existing columns/windows, etc., but would average 780 square feet. The units are designed as ‘studio apartments,’ consisting primarily of one large space that serves multiple purposes. Such a design makes the transition back to retail space much easier and less costly. If all the proposed 26 units were built within Building 1, this would represent an increase in density from 17 units per acre to 19.75 units per acre. The B-4 Mixed Use District allows up to 36 units per acre. The applicant is aware that any conversion to a residential use requires compliance with Building Code requirements for such use, as well as the need to obtain the necessary building permits. The applicant has met with the Building Official to discuss obstacles and requirements. No changes are planned to the parking areas. Since a retail use has a higher parking requirement than multifamily dwellings, the site will be “over-parked” if the proposed transition from retail to dwellings is approved. Residential land uses are less intense and produce fewer traffic volumes than a retail use; therefore, any increase in the mix of residential in place of retail will produce less daily and hourly traffic. The submitted plan depicts, as it did in previous iterations, an open area labeled as “Future Development” for up to 10,000 square feet of a uses permitted under the B-4 District. Proffer 3 from the 2008 CZA indicates that prior to the issuance of a building permit for construction of a structure in this area, elevations must be submitted to the Planning Director that depict a building that is “substantially similar and [with] complementary architectural features, exterior building materials and colors to those found on the Mixed Use Building….” This remains unchanged with this request. EXISTING LAND USE: Multifamily dwellings, mixed-use building SURROUNDING LAND USE AND ZONING:

North: • Single-family dwellings / R-5D Residential District South: • Lynnhaven Parkway

• Centerville Elementary School / R-5D Residential District East: • Centerville Turnpike

• Vacant field / B-2 Community Business District West: • Monument Drive

• Multifamily dwellings / A-12 Apartment District NATURAL RESOURCE AND CULTURAL FEATURES:

The site is within the Southern Watersheds Management Area. There do not appear to be any significant natural or cultural features on the site, as it is developed with a mix of multifamily dwellings units and a mixed-use development.

COMPREHENSIVE PLAN: The Comprehensive Plan designates this area of the city as Suburban Area and contains policies to guide and protect the overall character, economic value, and aesthetic quality of the stable neighborhoods in the Suburban Area. The plan also reinforces suburban characteristics of commercial centers and other non-residential areas that make-up part of the Suburban Area. Three key planning principles have been established in the Comprehensive Plan to guard against possible threats to this stability: preserve neighborhood quality, create and protect open spaces, and connect suburban mobility. Achieving the goals of preserving neighborhood quality requires that all new development or redevelopment, whether residential or non-residential, either maintain or enhance the overall development of the area. This is accomplished by

LAND USE AND PLAN INFORMATION

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having development proposals and uses either maintain or enhance the existing neighborhood through compatibility with surroundings, quality and attractiveness of site and buildings, improved mobility, environmental responsibility, livability, buffering of residential from other residential and non-residential with respect to type, size, intensity, and relationship to the surrounding uses.

CITY SERVICES

MASTER TRANSPORTATION PLAN (MTP) / CAPITAL IMPROVEMENT PROGRAM (CIP): Lynnhaven Parkway in the vicinity of this application is considered a four-lane divided minor urban arterial. The MTP proposes a four-lane facility within a 110 foot right-of-way. Currently, this segment of roadway is functioning under-capacity at a Level Of Service (LOS) C or better. Centerville Turnpike in the vicinity of this application is considered a two-lane undivided minor suburban arterial. The MTP proposes a six-lane facility within a 150 foot right-of-way. Currently, this segment of roadway is functioning under-capacity at a LOS C. Two roadway CIP projects are slated for this area. Centerville Parkway Phase III (CIP 2-403) is for construction of a four lane divided highway within a 145 foot right-of-way from Kempsville Road to Chesapeake City Line. The project will also include full improvements along Centerville Turnpike at the Lynnhaven Parkway intersection. Currently, this project is on the City’s Requested But Not Funded Project Listing. Lynnhaven Parkway Phase XI (CIP 2-167) is for reconstruction of the existing roadway to provide an ultimate four lane divided highway with a bikeway from Indian River Road to Centerville Turnpike. The project will also include signalizing the Lynnhaven Parkway/Monument Drive intersection. Construction is planned to commence in July 2013 and be completed three years later. TRAFFIC:

Street Name Present Volume Present Capacity Generated Traffic

Centerville Turnpike

13,526 ADT 1

13,600 ADT 1 (Level of Service “C”) - 16,200

ADT 1 (Level of Service “E”) Existing Land Use 2 –

1,108 ADTProposed Land Use 3 – 152

ADT

Lynnhaven Parkway

5,731 ADT 1 14,800 ADT 1 (Level of Service “C”) - 27,400

ADT 1 (Level of Service “E”)

1 Average Daily Trips 2 as defined by 25,000 SF of retail

3 as defined by 26 units WATER & SEWER: This site is already connected to City water and sewer. Pump Station #462 has capacity issues and may required system modification. An engineering hydraulic analysis may be required to ensure flows can be accommodated.

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SCHOOLS:

School Current Enrollment Capacity Generation 1 Change 2

Tallwood Elementary 601 625 1 1 Brandon Middle 1,254 1,247 1 1 Tallwood High 1,981 2,020 1 1 1 “generation” represents the number of students that the development will add to the school – in this scenario, based on information provided in the application, it is assumed that there will be 20 one-bedroom units and 6 two-bedroom units.

2 “change” represents the difference between generated students under the existing zoning and under the proposed zoning. The number can be positive (additional students) or negative (fewer students).

The applicant seeks to modify the proffers of the Conditional Zoning Agreement to replace the retail uses on the first floor of Building 1 with up to 26 residential units and to maintain the ability to revert those spaces back to retail uses in the future. As currently proffered, Building 1 is to be a mixed-use building with retail and office on the first floor and dwelling units on the second and third floors. The applicant would like flexibility to maintain some retail on the first floor, and indicated to Staff that given current market conditions, they are not amenable to stating what the ultimate mix of retail and residential will be. The impetus behind this modification, as described by the applicant, is to ensure the long-term vitality of the project and to ensure financial security of the property. Though the retail units have been available for lease for over four years, the majority of the retail space (63.5%) remains vacant despite “very aggressive marketing.” The applicant indicated that it has been almost two years since any new leases were signed. The applicant also stated that current, stringent financial lending constraints have negatively impacted potential leases, as it has become increasingly difficult for new retail businesses to launch. In addition, as this portion of Lynnhaven Parkway is not yet connected with the portion to the east, the applicant claims that the geographical location has proved to be difficult, as they must compete with other similar facilities that are more visible and accessible to patrons. While the applicant contends that the residential square footage rents approximately 30 percent less than a retail use, the projected increase in cash flow will help sustain the project until Lynnhaven Parkway is complete, which is currently scheduled for 2016. The completion of the roadway will improve the visibility of the site and increase the ‘pass-by’ trips offered to businesses, which should result in an increased demand for the ground floor space. Finally, it is important to note that costs required to retrofit such a space is similar to the cost of converting from one retail space to another retail space. Based on these factors, staff concludes that the transition from retail space to multifamily units is acceptable. While not proffered, the applicant has indicated the desire to establish a successful mixed-use building once Lynnhaven Parkway is connected in 2016, and as existing market forces shift.

ADDITIONAL PROFFERS The following are proffers submitted by the applicant as part of a Conditional Zoning Agreement (CZA). The

EVALUATION AND RECOMMENDATION

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applicant, consistent with Section 107(h) of the City Zoning Ordinance, has voluntarily submitted these proffers in an attempt to “offset identified problems to the extent that the proposed rezoning is acceptable,” (§107(h)(1)). Should this application be approved, the proffers will be recorded at the Circuit Court and serve as conditions restricting the use of the property as proposed with this change of zoning. PROFFER 1: Notwithstanding restrictions contained in the Original Proffers or First Amendment, the Grantor is hereby authorized to use all or a portion of the first floor of the building identified as Building “1” on the Concept Plan (as defined in the First Amendment) for multi-family residential uses, in addition to the office and retail uses. PROFFER 2: All other covenants, restrictions and conditions proffered as part of the Original Proffers shall remain unchanged and are incorporated by reference. STAFF COMMENTS: The proffers listed above are acceptable. EXISTING PROFFERS FROM 2008 MODIFICATION TO

REMAIN IN PLACE

2008 MODIFIED PROFFER AGREEMENT PROFFER 1: When the Property is developed, it shall be developed substantially as shown on the exhibit entitled “Conceptual Site Layout Plan of The Cascades at Woods Corner Centerville Tnpk. / Lynnhaven Pkwy. Virginia Beach, VA”, dated October 29, 2007, prepared by Humphreys & Partners Architects, L.P., which has been exhibited to the Virginia Beach City Council and is on file with the Virginia Beach Department of Planning (hereinafter referred to as the “Concept Plan”). PROFFER 2: When the mixed use building and the residential buildings depicted on the Concept Plan are developed, the exterior of the buildings shall be substantially similar in architectural features, details and appearance to the exhibits entitled, “MIXED USE BUILDING ELEVATIONS” and “MULITFAMILY BUILDING ELEVATIONS”, dated October 29, 2007, prepared by Humphreys & Partners, L.P., which has been exhibited to the Virginia Beach City Council and is on file with the Virginia Beach Department of Planning (hereinafter “Building Elevations”). PROFFER 3: Prior to the issuance of a building permit for construction of a structure on the portion of the Property designated “FUTURE DEVELOPMENT” on the Concept Plan, a set of building elevations depicting a building with substantially similar and complimentary architectural features, exterior building materials and colors to those found on the Mixed Use Building shall be submitted to the Director of the Virginia Beach Department of Planning for review and approval. PROFFER 4: No commercial business establishment shall be operated on the Property, which excludes persons on the basis of age during any part of the day, provides live musical entertainment, requires payment of an entry or cover charge from any patrons, or fails to close for business between the hours of 12:00 am to 6:00 am. PROFFER 5: None of the residential dwelling units depicted on the Concept Plan shall be reserved or set aside for lease or sale only to tenants or purchasers with incomes below the Area Median Income for the Virginia

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Beach-Norfolk-Newport News, Virginia Metropolitan Statistical Area (MSA) published by the U.S. Department of Housing and Urban Development (HUD). None of the units will be rented to tenants using “Project Based Section 8 Certificates.” PROFFER 6: Further conditions may be required by the Grantee during detailed Site Plan review and administration of applicable City Codes by all cognizant City Agencies and departments to meet all applicable City Code requirements. PROFFER 7: The Covenants, Restrictions and Conditions set forth herein replace and supersede the 2006 covenants, restrictions, and conditions. NOTE: Further conditions may be required during the administration of applicable City Ordinances and Standards. Any site plan submitted with this application may require revision during detailed site plan review to meet all applicable City Codes and Standards. All applicable permits required by the City Code, including those administered by the Department of Planning / Development Services Center and Department of Planning / Permits and Inspections Division, and the issuance of a Certificate of Occupancy, are required before any uses allowed by this Change of Zoning are valid. The applicant is encouraged to contact and work with the Crime Prevention Office within the Police Department for crime prevention techniques and Crime Prevention Through Environmental Design (CPTED) concepts and strategies as they pertain to this site.

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AERIAL OF SITE LOCATION

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EXISTING APPROVED CONCEPT PLAN

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PROPOSED REVISED CONCEPT PLAN

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ZONING HISTORY # DATE REQUEST ACTION 1 07/07/09

02/12/08 12/12/06 05/22/01

Modification of Proffers Modification of Proffers Change of Zoning (B-2 to Conditional B-4 ) Conditional Use Permit (Automotive Service Station)

Indefinitely Deferred Granted Granted Withdrawn

2 03/10/09

01/25/94 11/10/75

Change of Zoning (B-2 to Conditional A-24) and a Conditional Use Permit (Automobile Service Station) Conditional Use Permit (Driving Range and Mini-Golf) Change of Zoning(R-6 Residential to B-2 Business)

Granted Granted Granted

3 01/12/99 Conditional Use Permit (Borrow Pit) Granted

1 2

3

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DISCLOSURE STATEMENT

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DISCLOSURE STATEMENT

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