MEMORANDUM. SUBJECT: Application for Special Use Permit, The Graduate, 105 Kenan Street (Project # ) DESCRIPTION OF THE APPLICATION

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1 MEMORANDUM TO: FROM: Advisory Boards and Commissions Gene Poveromo, Current Development Manager Judy Johnson, Senior Planner SUBJECT: Application for Special Use Permit, The Graduate, 105 Kenan Street (Project # ) DATE: August 12, 2014 Environmental Stewardship Advisory Board August 14, 2014 Transportation and Connectivity Advisory Board August 19, 2014 Planning Commission August 20, 2014 Community Design Commission August 26, 2014 Housing Advisory Board September 9, 2014 Historic District Commission DESCRIPTION OF THE APPLICATION This memorandum describes the request for Special Use Permit for a proposed project, the Graduate, a multi-family development, at 105 Kenan Street. 80 dwelling units are proposed along with 138 parking spaces. RECOMMENDATION The Planning Commission is required, as part of the Land Use Management Plan, to make recommendation to the Council on the proposed Special Use Permit application; all other advisory boards are asked to make courtesy comments to the Council. A Public Hearing on this application is tentatively scheduled for September 15, Staff Report 2. Resolution A 3. Resolution B 4. Traffic Impact Exemption 5. Applicant s materials ATTACHMENTS

2 STAFF REPORT SUBJECT: Application for Special Use Permit The Graduate, 105 Kenan Street (Project No ) DATE: August 12, 2014 INTRODUCTION Attached for your consideration is a Special Use Permit application, submitted by The John R. McAdams Company, Inc., which proposes to redevelop a 0.76-acre site, located at 105 Kenan Street. The site is located south of West Franklin Street, adjacent to the Franklin Hotel, between Kenan Street and Mallette Street. The application proposes construction of a multi-residential development with 80 units in up to 114,000 square feet of floor area. A total of 138 parking spaces are proposed. The application is proposed to be considered at the Council s public hearing, tentatively scheduled for September 15, 2014.

3 BACKGROUND Until recently, the proposed development site includes a building that had been home to fast food establishments (Roy Rogers and Arby s) and was most recently the offices of the Chapel Hill Herald. In 2011, the building was demolished and replaced with a 76 space parking lot that included parking for the Franklin Hotel as well as some public parking spaces managed by the Town s Parking Services division. September 18, 2013 Concept Plan application reviewed by the Community Design Commission. November 18, 2013 March 4, 2014 Concept Plan application reviewed by Town Council. Special Use Permit application submitted. EXISTING CONDITIONS/DEVELOPMENT PROPOSAL SUMMARY The Special Use Permit application is proposing the following changes with details indicated in the table below: Site Description Address 105 Kenan Street The parcel is 33,106 square feet and located between Mallette Property Description Street and Kenan Street just to the south of the Franklin Hotel on West Franklin Street. Orange County Parcel Identifier Number Existing Site Conditions/Proposed Development Description Existing use and proposed Existing parking lot with 76 parking spaces Special Use Permit Proposed 80 multi-family dwelling units, including 12 affordable units and 138 parking spaces. Floor area A maximum of 65,219 square feet of floor area is allowed in Town Center-2 (TC-2) zoning. The proposal includes adding an additional 52,800 sq. ft. of floor area by applying the Inclusionary Zoning Ordinance floor area bonus. Affordable Housing Units Height Vegetation 12 one-bed room units (min. 700 sq. ft. per unit) Proposed Primary Height 35 ft. south side adjoining Residential-3 (R-3); Primary Height 44 ft. north side within Town Center-2 (TC-2). Secondary Height 90 ft.; See Modification to Regulations section for more information regarding the request for transition gradients between primary and secondary heights. Existing some perimeter planting; Proposed Bufferyard plantings on southern property line.

4 Vehicular Parking Minimum no minimum required; Maximum 112 spaces Provided 138 parking spaces Bicycle Parking Required - 20 spaces (1 space/4 du); Provided 20 spaces Vehicular and Pedestrian Existing driveway access to Mallette Street and Kenan Street; Access Proposed vehicle access to Mallette Street and pedestrian access to Kenan Street and Mallette Street Land Disturbance 39,790 s.f. (includes off-site area) Impervious Surface Existing 23,717 s.f. (71.6%) Proposed 26,697 s.f. (80.6%) Overlay Zone Cameron-McCauley Historic District adjoining property to the south. Resource Conservation No Resource Conservation District on site District overlay zone Jordan Riparian Buffer No Jordan Riparian Buffer on site overlay zone Steep Slopes All slopes less than 10% Zoning Existing and Proposed Town Center-2 (TC-2) Requested Modification to Regulations Requested Modification to To exceed primary and secondary building heights. Regulations To exceed maximum number of parking spaces. General Development Pattern North East South West Surroundings Downtown, central business district multi-story development including office, retail, institutional, and low density residential development on the southern side. Town Center-2 (TC-2) zoning, Franklin Hotel, Chipotle Town Center-2 (TC-2) zoning, Panera Bread Residential-3 (R-3) zoning and Cameron-McCauley Historic District adjacent to southern property line. Town Center-2 (TC-2) zoning and Cameron-McCauley Historic District adjacent to western property line. STAFF ANALYSIS OF APPLICATION Town staff has reviewed this application for compliance with the themes from the 2020 Comprehensive Plan, the standards of the Land Use Management Ordinance, and the Design Manual, and offers the following evaluation: Comprehensive Plan: The following are themes from the 2020 Comprehensive Plan, adopted June 25, 2012: Conforms No Comprehensive Plan Themes 1 A Place for Everybody 2 Community Prosperity and Engagement 3 Getting Around 4 Good Places, New Spaces

5 5 Nurturing Our Community 6 Town and Gown Collaboration We believe that the Graduate proposal complies with all six of the themes of the 2020 Comprehensive Plan. For information on how this proposed development addresses these themes and goals of the Comprehensive Plan, please refer to the attached applicant s Statement of Justification. Land Use Plan: The 2020 Land Use Plan, a component of the 2020 Comprehensive Plan designates this site as Town/Village Center. The area is also designated as a Future Focus Area that will be the focus of subsequent focus area planning initiatives. We believe that the Graduate proposal complies with the land use plan, including the proposal s compliance with themes in the 2020 Comprehensive Plan as indicated above. Comparison of Concept Plan and Special Use Permit Proposals Concept Plan Special Use Permit Application Floor Area Proposed 103,726 s.f. 100, ,000 Number of Dwelling Units Number of affordable units 12 Vehicular Access Mallette Street and Kenan Mallette Street Street Impervious Surface 28,656 s.f. 26,697 s.f. Number of Stories 4 stories above parking 5-6 stories above parking PROPOSED MODIFICATIONS TO REGULATIONS The applicant requests that the Council approve the following modifications to the Land Use Management Ordinance regulation in Table 3.8-1, Dimensional Matrix for transitions between primary height to secondary height transitions for the east, north, and west elevations. Request and LUMO Requirement To exceed the south elevation primary height transition from 35 feet to 55 feet. Section 3.8.4b limits primary height to 35 feet (adjoining residentially zoned property) Applicant Information The need for these extensions of the primary height and the secondaryheight step-back gradients arises from the intent to incorporate a significant amount of workforce housing, the inclusion of three levels of under-building parking, and also from the narrow configuration of the site. Staff Response We believe the Council could choose to make the public purpose finding that by increasing the height of the building allows additional affordable units to be provided.

6 To build beyond the building envelope (3 bldg. elevations) to accommodate a greater building height. Section Dimensional Matrix allows a 1:1 or 1:1.7 height transition gradient from primary height to secondary height To exceed the maximum number of parking spaces. Section provides minimum and maximum parking space requirements The need for these extensions of the primary height and the secondaryheight step-back gradients arises from the intent to incorporate a significant amount of workforce housing, the inclusion of three levels of under-building parking, and also from the narrow configuration of the site. The Graduate project is seeking a parking increase over the LUMO maximum parking established for the Town Center district. The developer/owner of the project is seeking the use of the 20 reserved overflow parking spaces for the Franklin Hotel under the same ownership and management. In addition to these stalls there will also be three reserved stalls for leasing/future tenants. We believe that it is reasonable to have a larger building envelope for the proposed building. We believe that the Council could make a finding that public purposes are satisfied to an equivalent or greater degree as a downtown opportunity site is being redeveloped, as identified in the Downtown Small Area Plan. We recommend modification to regulations to allow steeper sides of the building envelope, or greater volume. We believe that it is reasonable to exceed the number of required parking spaces as the parking is all located below grade. We believe that the Council could make a finding that public purposes are satisfied to an equivalent or greater degree. Council Findings and Public Purpose: The Council has the ability to modify the regulations, according to Section of the Land Use Management Ordinance. We believe that the Council could modify the regulations if it makes a finding in this particular case that public purposes are satisfied to an equivalent or greater degree. The Council may deny the proposed modification from regulations at its discretion. If the Council chooses to deny a request for modification to regulations, the applicant s alternative is to revise the proposal to comply with regulations. Affordable Housing This project proposes to create up to 80 new residential rental units. Since the project will only have rental housing, it is therefore not subject to the Inclusionary Zoning requirements. This proposal has volunteered to comply with the principles of the Inclusionary Zoning Ordinance and is proposing to provide 15 percent of the units as affordable rental units (the Town Center-2 requirement is 10 percent).

7 The Inclusionary Zoning Ordinance allows for a 4,400 square foot floor area bonus for each affordable unit. We believe the floor area bonus only applies to the affordable housing requirement (in this case 10 percent). As the applicant has chosen to voluntarily comply with the principles of the Inclusionary Zoning Ordinance, we believe the Council has the ability to accept the terms of the applicant s proposal as a better alternative than the Inclusionary Zoning Ordinance. The proposed Graduate Affordable Housing Program seeks to create 80 new residential rental apartments including 12 of the units as affordable. The applicant is proposing to apply the floor area bonus adding up to 52,800 square feet of additional floor area. Affordable units are proposed in the following manner: 1) 50 percent (or six) of the one bedroom affordable rental units would be available for households with an annual income below 60 percent of the Area Median Income (AMI); 2) 50 percent (or six) of the one bedroom affordable rental units would be available for households with an annual income between percent of the AMI. The applicant has committed to these standards for 30 years. Please refer to the applicant s materials for additional information. We have included a stipulation in Resolution A for 12 of the rental units to be available for Affordable Housing for 30 years with bi-annual updates to the Town. The Plan will include the maximum rent to be charged for the affordable units each year. Details of the management, monitoring of the affordable rental units, and method of determining yearly affordable rents, will be specified in the Affordable Housing Plan. Modifications to the Affordable Housing Plan shall be considered a minor modification to the Special Use Permit and may be approved administratively by the Town Manager. If the rental development is converted to an ownership condominium development, the applicant will be required to propose a plan for approval by the Council to provide either: 1) for sale affordable housing units, or 2) a payment-in-lieu. Transportation Traffic Impact: A Traffic Impact Analysis Exemption was granted for this project. The proposed development is estimated reduce the number of trips as the use of the site changes from a parking lot to multi-family dwelling units. A trip generation study was conducted estimating the number of trips to reduce by 202 daily trips. Based on the Traffic Impact Analysis Exemptions thresholds, an exemption was granted. For additional information, please see the attachments. Vehicular Access: The applicant is proposing one point of access from Mallette Street. Mallette Street Right-of-way Dedication: We recommend that prior to the issuance of a Zoning Compliance Permit, the applicant dedicate Mallette Street public right-of-way to the Town to the back edge of the public sidewalk, spanning the property frontage for the site. We have included a stipulation in Resolution A with detailed requirements Streetscape Improvements: Although the site is technically outside of the Streetscape Master Plan Study Area, which is measured 100 feet from the right-of-way of Franklin Street. To

8 provide a consistent pedestrian experience, the applicant is replicating some of the Streetscape design patterns, dimensions, and furnishings. Vehicular Parking: In Town Center-2 (TC-2) zoning districts, there is no minimum parking requirement for multi-family dwelling units. The maximum parking is 106 parking spaces based on a mix of one-bedroom and two-bedroom units. The applicant is proposing to provide 138 parking spaces with some of the parking designated as overflow parking for the Franklin Hotel. Please see the Modification to Regulations section of this memorandum for additional information. The applicant is proposing to rent the parking spaces as a separate amenity from the apartment units. We recommend that the applicant consider the cost of renting a parking space as part of the affordable housing plan. Landscape and Architecture Height, Transitional Controls, and Building Envelope: Section of the Land Use Management Ordinance Transitional Control Intensity Modifications pertains to required adjustments to height and setback to accommodate adjacent lower-intensity zoning districts in this case the Residential-3 (R-3) district to the south of the site. The requirements are summarized below. See applicant s materials and the Modifications to Regulations section of this memorandum for additional information. The graphics below depict where the proposed building extends outside the allowable building envelope. The arrows indicate the area outside of the allowable building envelope. West Elevation

9 East Elevation The chart below summarizes the intensity requirements and the proposal. Intensity Controls TC-2 Zoning District Requirements Proposed Dimensions Southern Property Line Setback 8 ft. 8 ft. Primary Height 35 ft. 55 ft. Slope 1:1 1:1 Secondary Height 90 ft. 90 ft. Eastern Property Line (0 ft. setback) Setback 0 ft. 0 ft. Primary Height 44 ft. 44 ft. Slope 1:1 6:1 Secondary Height 90 ft. 90 ft. Northern Property Line (0 ft. setback) Setback 0 ft. 0 ft. Primary Height 44 ft. 90 ft. Slope 1:1.7 no slope

10 Secondary Height 90 ft. 90 ft. Western Property Line (0 ft. setback) Setback 0 ft. 0 ft. Primary Height 44 ft. 44 ft. Slope 1:1 3:1 Secondary Height 90 ft. 90 ft. The proposed development is requesting Modification to Regulations from the Council for the transition gradients for three of the elevations as well as to the primary height on the southern elevation. Landscape Bufferyards: The Town Center zoning districts do not require perimeter landscape bufferyards when the property is adjacent to properties also in the Town Center zoning districts. For the eastern, northern, and western property lines, there is no buffer requirement. The southern property line is adjacent to the Residential-3 (R-3) zoning district and has a 10 foot Type C buffer requirement. The applicant is requesting to build a wall, an alternate buffer, for the southern property line. An alternate buffer is intended to provide the same visual and noise obstruction as a typical buffer. We have included a stipulation that the Community Design Commission approve the alternate buffer at this location. Parking Lot Shading and Screening: As all of the proposed parking spaces are designed to be located entirely underground, the requirements of Section of the Land Use Management Ordinance do not apply. Building Elevations: We recommend that prior to issuance of a Zoning Compliance Permit, that detailed building elevations, lighting plans, and landscape plans be approved by the Community Design Commission. We have included this as a stipulation in Resolution A. Environment/Stormwater Management Stormwater Management: The redevelopment site is currently a parking lot with limited landscaping and the proposal includes a total of 26,697 square feet of impervious surface, or 2,980 square feet of new impervious surface. A detention device is proposed to detain and treat the stormwater run-off. The development must meet applicable performance standards regarding stormwater management in Section 3.6.4(g) of the Land Use Management Ordinance. We have included a stipulation in Resolution A requiring approval of a Stormwater Management Plan prior to issuance of a Zoning Compliance Permit. We have included a stipulation in Resolution A for the stormwater management. Contamination Assessment: Prior to issuance of a Zoning Compliance Permit, the applicant shall provide a plan for mitigating subsurface contamination, if encountered, during site redevelopment. The plan shall be reviewed and approved by the Town Manager. We have included a stipulation in Resolution A. Land Disturbance: The total area of land disturbance proposed by the applicant is 39,790 square feet, including off-site clearing. The off-site work proposed is to tie into an off-site catch basin.

11 Energy Management Plan: The Council encourages applicants to submit an Energy Management Plan as part of their Special Use Permit. The applicant has proposed an Energy Management Plan (EMP) with a number of potential conservation and efficiency elements. Please find the applicant s EMP attached. We recommend that prior to issuance of a Zoning Compliance Permit, the applicant submit a detailed plan that addresses the Town s energy policy, which recommends that buildings be designed to a minimum of 20 percent more energy efficient than the American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE). We have included stipulations with detailed requirements encouraging the use of an Energy Management Plan in Resolution A. Utilities and Services Utilities: Prior to the issuance of a Zoning Compliance Permit, we recommend that the applicant provide final utility/lighting plans to be approved by Orange Water and Sewer Authority (OWASA), Duke Energy Company, Time-Warner Cable, Public Service Company, telecom providers, and the Town Manager. The property owner will be responsible for assuring that these utilities are extended to serve the development. We have included a stipulation in Resolution A. Recreation Recreational Facilities As proposed, the current design would require approximately 3,972 square feet of recreation space. We recommend that the applicant provide a minimum of 25% of the required recreation space as a payment-in-lieu prior to issuance of a Zoning Compliance Permit. All recreation space amenities provided on site would have to be completed prior to issuance of a Certificate of Occupancy. The final design, size, and type of active recreation space facilities are subject to Town Manager approval. We have included a detailed stipulation in Resolution A. Refuse Management Refuse Collection: As proposed, the refuse collection would occur at the curb on Mallette Street. We recommend that an alternative plan for collecting refuse be proposed that does not require collection to occur in the public right-of-way. We have included this as a stipulation in Resolution A. Additional Stipulations in Resolution A (see Resolution A for detailed requirements) Accessibility Requirements Prior to issuance of a Certificate of Occupancy, the applicant shall provide the minimum required handicapped facilities and infrastructure required by the American with Disabilities codes and standards. Off-Site Construction Prior to land disturbing activities on adjacent properties Easements associated with construction, the applicant shall provide documentation of approval from property owners affected by off-site construction. Landscape Protection We have included our standard stipulation in approval of a Landscape Plan, including screening of parking areas and

12 Building Elevations, Lighting, and Landscaping Plans Public Art Erosion Control Lighting Plan Overhead Power Lines Fire Refuse Management Solid Waste Management Plan Schools Adequate Public Facility Ordinance Construction Management Plan Construction Phasing buildings (as required) as well as a maintenance schedule, and canopy trees. Prior to issuance of a Zoning Compliance Permit, we recommend that detailed building elevations, lighting plans, and landscape plans be approved by the Community Design Commission The applicant proposes to incorporate public art as part of the development. We recommend that applicant continue to work with the Town s Public Arts Officer. Prior to final authorization to begin land disturbing activities, the applicant shall be required to provide a performance bond in accordance with Section Bonds of the Town Code of Ordinance if more than one acre of land is disturbed. Prior to approval of a Zoning Compliance Permit, the applicant shall provide a copy of the approved erosion and sedimentation control permit from Orange County Erosion Control Division. Prior to issuance of a Zoning Compliance Permit, the applicant shall submit site plans and other required documents to satisfy the lighting requirements of Section 5.11 of the Land Use Management Ordinance. We have included the standard stipulation that all proposed or relocated utility lines other than 3-phase electric power distribution lines be located underground. Prior to the issuance of a Certificate of Occupancy, the applicant shall be required to obtain Fire Marshal approval for required fire safety features and infrastructure, such as fire hydrants, fire department connections, detailed fire access elements, fire protection devices, heavy-duty pavement, and drive aisle design features. Prior to issuance of a Zoning Compliance Permit, design is subject to Fire Marshal approval. Prior to issuance of a Zoning Compliance Permit, the applicant shall provide a letter from a private waste collection service indicating that they have reviewed final plans and are able to provide service. Prior to issuance of a Zoning Compliance Permit, the applicant must obtain approval of a Solid Waste Management Plan from Orange County Solid Waste Department. The proposed redevelopment is subject to the provisions of the Schools Adequate Public Facility Ordinance. Prior to issuance of a Zoning Compliance Permit, a Construction Management Plan shall be reviewed and approved by the Town Manager. We recommend that the applicant submit a Phasing Plan with the Final Plans Zoning Compliance Permit application. The phasing plan shall detail when public improvements and

13 Traffic and Pedestrian Control Plan Repairs in the Public Rightsof-Ways Street Closure Plan Community Design Commission Approval stormwater management structures shall be completed and inspected as part of that phase prior to requesting a Certificate of Occupancy. Prior to issuance of a Zoning Compliance Permit, the applicant shall provide a Work Zone Traffic Control Plan for movement of motorized and non-motorized vehicles on any public street that will be disrupted during construction. Prior to issuance of a Certificate of Occupancy, it will be necessary to repair all damage for work in the public right-ofway related to the construction of this project. The design must be reviewed and approved by the Town Manager prior to issuance of a Zoning Compliance Permit. That prior to the issuance of a Zoning Compliance Permit, the applicant shall provide a street closure plan, subject to Town Manager approval, for any work requiring street closures. That prior to issuance of a Zoning Compliance Permit, the applicant must obtain Community Design Commission approval of alternate buffers, building elevations, lighting, and HVAC units and screening. SPECIAL USE PERMIT FINDINGS The applicant s materials are included as attachments to this memorandum. All information submitted at the public hearing will be included in the record of the hearing. Based on the evidence submitted, the Council will consider whether or not it can make each of the four required findings for the approval of the Special Use Permit. The four findings are: Finding #1: That the use or development is located, designed, and proposed to be operated so as to maintain or promote the public health, safety, and general welfare; Finding #2: That the use or development would comply with all required regulations and standards of the Land Use Management Ordinance; Finding #3: That the use or development is located, designed, and proposed to be operated so as to maintain or enhance the value of contiguous property, or that the use or development is a public necessity; and Finding#4: That the use or development conforms to the general plans for the physical development of the Town as embodied in the Land Use Management Ordinance and in the Comprehensive Plan. Following the public hearing, we will prepare an evaluation of the evidence submitted in support of and in opposition to this application.

14 RECOMMENDATION Staff Recommendation: We recommend that the advisory boards review the Special Use Permit applicant and make recommendation to the Town Council. We recommend that the advisory boards recommend that the Council adopt Resolution A, approving the Special Use Permit for the redevelopment of the Graduate site, with conditions. ATTACHMENTS 1. Checklists of Project Fact Sheet Requirements 2. Resolution A Approving the Special Use Permit 3. Resolution B Denying the Special Use Permit 4. Applicant s materials 5. Traffic Impact Analysis Exemption 6. Area Map

15 PROJECT FACT SHEET REQUIREMENTS Check List of Regulations and Standards Special Use Permit Application Use Permitted The Graduate 105 Kenan Street Gross Land Area (0.76 acre) Minimum Lot Width Maximum Floor Area Maximum # of Dwelling Units Minimum Recreation Space Impervious Surface Limits Land Disturbance Minimized Maximum # of Vehicular Parking Spaces Minimum # of Bicycle Parking Spaces Minimum # of Loading Spaces Minimum Street Setbacks Minimum Interior Setbacks Minimum Solar Setbacks Meets Transitional Modification Controls adjacent to residential zoning Maximum Primary and Secondary Height limits Minimum Landscape Bufferyards Steep Slope Compliance Parking Lot Screening Public Water and Sewer Adequate Public Schools Facilities STAFF EVALUATION BASED ON TC-2 ZONING COMPLIANCE NONCOMPLIANCE (with Density Bonus) n/a (with conditions) n/a n/a n/a (with modification to regulations) (with modification to regulations) (with alternate buffer) n/a

16 RESOLUTION A (Approving the Special Use Permit Application) A RESOLUTION APPROVING AN APPLICATION FOR SPECIAL USE PERMIT FOR THE GRADUATE, 105 KENAN STREET (PIN , PROJECT #14-019) BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that a Special Use Permit proposed by The John R. McAdams Company for The Graduate at 105 Kenan Street, on property identified as a portion of Orange County Property Identifier Number , if developed according to the Site Plan dated May 30, 2014 and the conditions listed below would: 1. Be located, designed, and proposed to be operated so as to maintain or promote the public health, safety, and general welfare; 2. Comply with all required regulations and standards of the Land Use Management Ordinance; 3. Be located, designed, and operated so as to maintain or enhance the value of contiguous property; and 4. Conform with the general plans for the physical development of the Town as embodied in the Land Use Management Ordinance and in the 2020 Comprehensive Plan. BE IT FURTHER RESOLVED by the Town Council of Chapel Hill that it finds, in this particular case, that the proposed development with the following requested modifications to regulations satisfy public purposes to an equivalent or greater degree: Modification of Table of the Land Use Management Ordinance to modify the intensity regulations as regards the building height: 1. Building Height to allow exceeding the maximum primary 35-foot building height by 20 feet to a maximum of 55 feet for the southern property line. 2. Building Envelope to allow exceeding the building envelope on the east, north, and west elevations. Modification of Section of the Land Use Management Ordinance to modify the maximum number of parking spaces. This finding is based on a determination that public purposes are satisfied to an equivalent or greater degree as the proposal would redevelop a downtown site with the 1) a significant amount of workforce housing; 2) the inclusion of three levels of under-building parking; and 3) narrow configuration of the site. BE IT FURTHER RESOLVED that the Town Council hereby approves the application for a Special Use Permit for The Graduate, 105 Kenan Street in accordance with the plans listed above and with the conditions listed below:

17 Stipulations Specific to the Development 1. Construction Deadline: That construction begin by (2 years from the date of approval), to be completed by (4 years from the date of approval). 2. Land Use Intensity: This Special Use Permit authorizes the following: Use: Residential Gross Land Area 33,106 s.f. Floor Area (TC-2 zoning) 65,219 s.f. Floor Area Bonus 44,000 s.f. Total Floor Area Allowed 109,219 s.f. Total Dwelling Units 80 Affordable Rental Units 12 (15%) Maximum Vehicular Parking Spaces 138 Minimum Bicycle Parking Spaces 20 spaces Impervious Surface 26,697 s.f. Affordable Housing 3. Affordable Housing Performance Agreement: Prior to issuance of a Zoning Compliance Permit, the applicant shall submit an Affordable Housing Performance Agreement consistent with the following terms: Twelve Affordable Rental Units available for 30 years. The affordable rental units are proposed in the following manner: 1. Six units are to be available to households meeting 60% of the area median income. 2. Six units are to be available to households meeting 75% of the area median income. (Area median income as defined by the U.S. Dept. of Housing and Urban Development for the Durham/Chapel Hill MSA.) Designate the affordable rental units in fixed locations in the development. The applicant shall be responsible for the management/monitoring/reporting of the affordable units and reporting this information to the Town. An affordable unit vacant for more than 30 days may be made available to any renters for a period of one year at market rate. When the term ends, the unit will be made available to an income qualified tenant. As long as any affordable unit is rented at market rate, the owner will make payments to the Town s Affordable Housing Fund for the excess rents being earned. The maximum rent to be charged for the affordable units each year and method for determining yearly affordable rents of the affordable rental units shall be reported to the Town Manager.

18 4. Affordable Housing Plan: Upon a determination by the Town Manager that the applicant s Affordable Rental Unit Housing Plan meets the criteria set out herein, the Applicant and the Town Manager (or his designee), on behalf of the Town, shall execute an Affordable Housing Performance Agreement incorporating the terms of the Plan. That Agreement, as well as the Special Use Permit Modification herein approved shall be recorded at the Office of the Orange County Register of Deeds and shall be binding upon the applicant and its successors in interest. The Agreement and Special Use Permit Modification and the Deed Book and Page Number where they are recorded, shall be specifically referenced in all future conveyances of an interest in any portion of the property covered by the Permit. 5. Reporting Requirements: The property owner shall submit a bi-annual report to the Town Manager for compliance with the Affordable Housing Performance Agreement. The first report shall be submitted six months after the issuance of the final Certificate of Occupancy, and reports shall be submitted for three years. Included in the reports shall be efforts to partner with area non-profits for eligible renters. 6. Termination: If after three years from the issuance of the final Certificate of Occupancy, the Town Manager or applicant finds the voluntarily offered program is not working despite reasonable efforts, then upon approval from the Town Council, the Affordable Housing Performance Agreement may be terminated by agreement of the parties upon payment by the applicant to the Town of Chapel Hill of $TBD. 7. Modifications: Modifications to the Affordable Housing Performance Agreement shall be considered a minor amendment to the Special Use Permit and may be approved administratively by the Town Manager. 8. Remedies: All remedies allowed by law, including specific performance of any of the terms of this permit and the Affordable Housing Performance Agreement shall be available to the Town in the event the Town determines the applicant or any subsequent owner is not in compliance with this Permit or Affordable Housing Performance Agreement. 9. Conversion of Residential Rental Units to Ownership Condominium Units: That if the rental development is converted to an ownership condominium development, the current or future developer/owner of The Graduate, 105 Kenan Street, affordable units for ownership shall be provided according to the Inclusionary Zoning Ordinance or other affordable housing policy in place at the time of conversion. An Affordable Housing Plan shall be approved by the Town Manager prior to recordation of the condominium plat. Access 10. Off-site Construction Easements: Prior to any land disturbance on abutting properties it will be necessary to provide documentation of approval from the affected property owner(s). 11. Accessibility Requirements: That prior to issuance of a Certificate of Occupancy, the applicant shall provide the minimum required handicapped parking spaces and design all handicapped parking spaces, ramps, and crosswalks, and associated infrastructure according to Americans with Disabilities Act standards, North Carolina Building Code, American National Standards Institute (ANSI) Code, and Town standard. 12. Performance Bond: Prior to commencing construction activity for the improvements in the public right-ofway, a performance bond shall be provided to the Town Manager to insure the construction and

19 installation of the improvements in accordance with the standards and provisions approved by the Town as part of the project. Transportation 13. Streetscape Improvements: Prior to the issuance of a Certificate of Occupancy streetscape improvements shall be constructed according to approved plans. Design is subject to Town Manager approval prior to issuance of a Zoning Compliance Permit. 14. Repairs in Public Right-of-Way: Prior to a Certificate of Occupancy it will be necessary to repair all damage for work in the public right-of-way related to the construction of this project, which may include pavement milling and overlay. The design must be reviewed and approved by the Town Manager prior to a Zoning Compliance Permit. 15. Street Closure Plan: That prior to the issuance of a Zoning Compliance Permit, the applicant shall provide a street closure plan, subject to Town Manager approval, for any work requiring street, sidewalk, or lane closures. 16. Work Zone Traffic Control Plan: Prior to a Zoning Compliance Permit it will be necessary to provide a Work Zone Traffic Control Plan and a Construction Management Plan for approval by the Town Manager. The Work Zone Traffic Control Plan shall comply with the Manual on Uniform Traffic Control Devices. The Construction Management Plan shall provide staging, construction worker parking, construction vehicle routes, and hours of construction. 17. Heavy Duty Structural Support: Prior to issuance of a Zoning Compliance Permit, the developer shall provide documentation that, if underground stormwater detention is proposed beneath parking areas or drive aisles, the pavement is designed to structurally support the live loads of fire trucks and garbage trucks. 18. Bicycle Parking: That prior to the issuance of a Zoning Compliance Permit, the applicant shall provide dimensioned details for 20 bicycle parking spaces that comply with Town parking standards. The bicycle parking design must comply with the spring 2010 Association of Pedestrian and Bicycle Professionals Guidelines, and the Class I and Class II bicycle parking standards required by the Town Design Manual. 19. Transportation Management Plan: A Transportation Management Plan for the development shall be approved by the Town Manager prior to issuance of a Certificate of Occupancy. This plan shall be updated annually and approved by the Town Manager. The required components of the Transportation Management Plan shall include: a) A Transportation Coordinator to communicate and promote alternate modes of transportation. b) Submission of an Occupancy Survey due 90 days after issuance of Certificate of Occupancy. c) Submission of an updated annual Transportation Management Plan Report. d) Submission of Business and Employee Surveys during survey years. e) Measures to gradually attain the goals of the program.

20 Recreation 20. Recreation Space: That the applicant shall provide a combination of active recreation space and a payment-in-lieu of recreation space. The amount of active recreation area shall be determined as follows: (12% x Gross Land Area). As proposed, the current design would require approximately 3,972 square feet of recreation space. Prior to the issuance of a Zoning Compliance Permit the applicant shall provide a minimum 25% payment-in-lieu of recreation space. The remaining active recreation space shall be provided prior to issuance of Certificate of Occupancy. The final design, size, type, and changes to proposed active recreation space facilities are subject to Town Manager approval. Landscaping and Elevations Location Southern Property Line Western Property Line Northern Property Line Eastern Property Line Buffer 8 foot wide alternate buffer No Buffer Required No Buffer Required No Buffer Required 21. Landscape Protection: Prior to issuance of a Zoning Compliance Permit a detailed Landscape Protection Plan shall be approved. The plan shall include which trees will be removed and which will be preserved, critical root zones of all rare and specimen trees, and clearly indicate names and species. 22. Tree Protection Fencing Prior to Construction: Prior to issuance of a Zoning Compliance Permit the applicant shall provide a note on the Final Plans indicating that tree protection fencing will be installed prior to land-disturbing activity on the site. Tree protection fencing shall be provided around construction limits and indicated construction parking and materials staging/storage areas, and Town standard landscaping protection notes, subject to Town Manager approval. 23. Landscape Planting Plan: Prior to issuance of a Zoning Compliance Permit the applicant shall provide a detailed Landscape Planting Plan with a detailed planting list, subject to Town Manager approval. The Plan shall include canopy trees to shade surface any surface parking areas. 24. Lighting Plan Approval: Prior to issuance of a Zoning Compliance Permit the Community Design Commission shall approve a lighting plan for this site and shall take additional care during review to ensure that the proposed lighting plan will minimize 1) upward light pollution and 2) offsite spillage of light. 25. Community Design Commission Approval: That the applicant obtain Community Design Commission approval of building elevations and lighting, including the location and screening of all HVAC/Air Handling Units for this project, prior to issuance of a Zoning Compliance Permit. That prior to issuance of a Zoning Compliance Permit the Commission shall approve a lighting plan for this site and shall take additional care during review to ensure that the proposed lighting plan will minimize 1) upward light pollution and 2) offsite spillage of light.

21 26. Alternative South Buffer: It will be necessary for the Community Design Commission to make the determination that any proposed alternate buffer shall provide the same degree of visual and noise obstruction as the required buffer. Public Art 27. Public Art: The applicant is encouraged to work with the Public Arts Officer to develop a public arts plan. Environment 28. Energy Management Plan: That prior to issuance of a Zoning Compliance Permit, the applicant is encouraged to provide an Energy Management Plan (EMP) to be approved by the Town Manager. The plan shall: a) consider utilizing sustainable energy, currently defined as solar, wind, geothermal, biofuels, hydroelectric power; b) consider purchase of carbon offset credits and green power production through coordination with the NC GreenPower program; c) provide for 20 percent more efficiency that also ensures indoor air quality and adequate access to natural lighting, and allows for the proposed utilization of sustainable energy in the project; and (d) that the property owner reports to the Town of Chapel Hill the actual energy performance of the plan, as implemented, during the period ending one year after occupancy. Stormwater Management 29. Stormwater Management Plan: That this project must comply with the Section 5.4 Stormwater Management of the Land Use Management Ordinance. 30. Jordan Watershed Stormwater Management for New Development: That if the total disturbed area exceeds 0.5 acres, this project must comply with Section 5.19 Jordan Watershed Stormwater Management for New Development of the Land Use Management Ordinance to provide the required reductions in nitrogen and phosphorus loads for new development and redevelopment projects. 31. Silt Control: That the applicant takes appropriate measures to prevent and remove the deposit of wet or dry silt on adjacent paved roadways. 32. Jordan Surety: That if the total disturbed area exceeds 0.5 acres, prior to issuance of a Certificate of Occupancy, the owner shall post a maintenance bond or other surety instrument satisfactory to the Town Manager, in an amount equal to one hundred twenty-five (125) percent of the construction cost of each stormwater management facility to assure maintenance, repair, or reconstruction necessary for adequate performance of the stormwater management facility, or establish a stormwater maintenance (sinking fund) budget and escrow account in accordance with the requirements of Section 5.19 of the Land Use Management Ordinance. 33. Erosion Control Bond: If one (1) acre or more is uncovered by land-disturbing activities for this project, then a performance guarantee in accordance with Section Bonds of the Town Code of Ordinances shall be required prior to final authorization to begin land-disturbing activities. This financial guarantee is intended to cover the costs of restoration of failed or failing soil erosion and sedimentation controls, and/or to remedy damages resulting from land-disturbing activities, should the responsible party or parties fail to provide prompt and effective remedies acceptable to the Town.

22 34. Erosion Control: The applicant shall provide a copy of the approved erosion and sediment control permit from Orange County Erosion Control Division prior to receiving a Zoning Compliance Permit. During the construction phase, additional erosion and sediment controls may be required if the proposed measures do not contain the sediment. Sediment leaving the property is a violation of the Town s Erosion and Sediment Control Ordinance. 35. Erosion Control Inspections: That, in addition to the requirement during construction for inspection after every rainfall, the applicant shall inspect the erosion and sediment control devices daily, make any necessary repairs or adjustments to the devices, and maintain inspection logs documenting the daily inspections and any necessary repairs. 36. Curb Inlets: The applicant shall provide pre-cast curb inlet hoods and covers stating, "Dump No Waste! Drains to Jordan Lake", in accordance with the specifications of the Town Standard Detail SD-5A, for all new curb inlets for private, Town and State rights-of-way. 37. As-Built Plans: That prior to the issuance of a Certificate of Occupancy, the applicant shall provide certified as-built plans for building footprints, parking lots, street improvements, storm drainage systems and stormwater management structures, and all other impervious surfaces, and a tally of the constructed impervious area. The as-built plans should be in DXF binary format using State plane coordinates and NAVD Phasing Plan: Prior to issuance of a Zoning Compliance Permit, the applicant shall obtain approval of a Phasing Plan that provides details of which improvements are to be constructed during each phase. The phasing plan shall detail public improvements and stormwater management structures will be completed in each phase prior to requesting a Certificate of Occupancy. Construction for any phase may not begin until all public improvements in previous phases are complete, with a note to this effect on the final plans and plats. 39. On-Site/Adjacent Stormwater Features: That the final plans locate and identify existing site conditions including all on-site and adjacent stormwater drainage features on the plans prior to issuance of a Zoning Compliance Permit. The final plans must provide proper inlet protection for the stormwater drainage inlets on or adjacent to the site to ensure the stormwater drainage system will not be obstructed with construction debris. 40. P.E. Certification: That prior to the issuance of a Certificate of Occupancy for any phase, the applicant shall provide a certification, signed and sealed by a North Carolina-licensed Professional Engineer, that the stormwater management facilities are constructed in accordance with the approved plans and specifications. 41. Repair/Replacement of Damaged Stormwater Infrastructure: Existing stormwater infrastructure that is damaged as a result the project demolition or construction, must be repaired or replaced, as specified by the Stormwater Management Engineer, prior to requesting a Certificate of Occupancy.

23 42. Contamination Assessment: Prior to issuance of a Zoning Compliance Permit the applicant shall provide a plan for mitigating subsurface contamination, if encountered, during site redevelopment, including specific procedures for addressing contaminated ground water and/or soils, and proper transportation and disposal of contaminated material or groundwater, if needed. If groundwater contamination is indicated, the final plans must address the proper treatment and disposal of groundwater generated by any proposed foundation drains. The plan shall be reviewed and approved by the Town Manager. Water, Sewer, and Other Utilities 43. Utility/Lighting Plan Approval: That the final utility/lighting plan shall be approved by Orange Water and Sewer Authority, Duke Energy Company, and other local utility service providers, and the Town Manager before issuance of a Zoning Compliance Permit. The property owner shall be responsible for assuring that these utilities can continue to serve the development. In addition, detailed construction drawings shall be submitted to OWASA for review/approval prior to issuance of a Zoning Compliance Permit. 44. Lighting Plan: That prior to issuance of a Zoning Compliance Permit, the applicant shall submit site plans and other required documents to satisfy the lighting requirements of Section 5.11 of the Land Use Management Ordinance including submission of a lighting plan, providing for adequate lighting on public sidewalks, including driveway crossings, and beneath awnings, demonstrating compliance with Town standards, sealed by a Professional Engineer, for Town Manager approval. 45. Relocation of Overhead Utilities Underground: Prior to a Certificate of Occupancy it will be necessary to provide for the underground installation of all public utilities that are currently located overhead on the site except for 3 phase or greater electric lines. 46. Water/Sewer Line Construction: That all public water and sewer plans be approved by OWASA and constructed according to their standards. Where sewer lines are located beneath drive aisles and parking areas construction methods approved by OWASA shall be employed, to ensure that sewer lines will not be damaged by heavy service vehicles. That prior to issuance of a Zoning Compliance Permit, final plans shall be approved by OWASA and the Town Manager. 47. OWASA Approval: That prior to issuance of a Zoning Compliance Permit, easement plats and documentation as required by OWASA and the Town Manager, shall be recorded if necessary. Fire Safety 48. Fire Sprinklers: That the applicant shall install sprinklers under the NCFC prior to a Certificate of Occupancy. Prior to issuance of a Zoning Compliance Permit, the plans shall show all proposed fire department connections to such systems. 49. Hydrants Active: That the applicant shall provide active fire hydrant coverage, acceptable to the Fire Department, for any areas where combustible construction materials will be stored or installed, prior to having such materials delivered to the site. All required fire hydrants must be installed, active, and accessible for the Fire Department use prior to the arrival of combustible materials on site. That fire protection systems shall be installed according to Town Ordinance, the NC Fire Code, and NFPA 13.

24 50. Fire Hydrant and FDC Locations: That the Final Plans shall indicate the locations of existing and proposed fire hydrants and Fire Department Connections (FDC). Fire Department Connections shall be located on the street side of the building within 100 feet of a hydrant. Hydrant spacing shall comply with the Town Design Manual. Design shall be reviewed and approved by the Town Manager prior to issuance of a Zoning Compliance Permit. 51. Firefighting Access during Construction: That as required by NC Fire Code (Section Required Access), vehicle access for firefighting shall be provided to all construction or demolition sites including vehicle access to within 100 feet of temporary or permanent fire department connections and hydrants. Vehicle access shall be provided by either temporary or permanent roads capable of supporting vehicle loading under all weather conditions. 52. Fire Flow Report: That the Final Plan application shall include a fire flow report sealed by an Engineer registered in the State of North Carolina. An OWASA flow test must be provided with the report. Fire flow shall meet the 20 psi or exceed the requirements set forth in the Town Design Manual. The Fire Flow Report shall be reviewed and approved by the Town Manager prior to issuance of a Zoning Compliance Permit. 53. Heavy-Duty Paving: That prior to issuance of a Certificate of Occupancy the applicant shall provide heavy duty paving designed and built to withstand fire apparatus weighing at least 75,000 pounds. 54. Fire Lane: Prior to issuance of a Certificate of Occupancy, the fire lane shall be marked and signed in accordance with Town standards, with the associated plans approved by the Town Manager prior to issuance of a Zoning Compliance Permit. 55. Emergency Communications System: That the developer shall provide building design features which enable public safety responders radios to penetrate and provide reliable radio transmissions within the building. Solid Waste Management and Recycling 56. Solid Waste Management Plan: That prior to issuance of a Zoning Compliance Permit a detailed Solid Waste Management Plan, including a recycling plan and a plan for managing and minimizing construction debris, shall be approved by the Town Manager. The plan shall include dimensioned, scaled details of any proposed refuse/recycling collection areas, associated screening, and protective bollards, if applicable. Each bulk waste container shall be labeled as to type of material to be collected. Prior to issuance of a Zoning Compliance Permit, the developer shall provide documentation of an agreement for solid waste collection by a private provider. 57. Construction Waste: Clean wood waste, scrap metal and corrugated cardboard, all present in construction waste, must be recycled. All haulers of construction waste must be properly licensed. The developer shall provide the name of the permitted waste disposal facility to which any land clearing or demolition waste will be delivered.

25 58. Solid Waste Collection: That prior to issuance of a Zoning Compliance Permit, the applicant submit a letter from private waste collection service indicating that they have reviewed the proposal and can provide service according to the current plans for development. 59. Refuse Collection: That an alternative plan for collecting refuse be proposed that does not require collection to occur in the public right-of-way. State and Federal Approvals 60. State or Federal Approvals: That any required State or federal permits or encroachment agreements (e.g., 401 water quality certification, 404 permit) shall be approved and copies of the approved permits and agreements be submitted to the Town of Chapel Hill prior to the issuance of a Zoning Compliance Permit. 61. North Carolina Department of Transportation Approvals: Prior to issuance of a Zoning Compliance Permit, plans for any improvements to State-maintained roads or in associated rights-of-way shall be approved by NCDOT prior to issuance of a Zoning Compliance Permit. Miscellaneous 62. Temporary Construction Access Agreements: Prior to issuance of a Zoning Compliance Permit the applicant shall provide construction agreements with adjacent property owners, where necessary, subject to Town Manager approval. If the abutting property is to be used a part of construction access, provide documentation of permission from the owner of said property. 63. Construction Management Plan: That a Construction Management Plan, be approved by the Town Manager prior to issuance of a Zoning Compliance Permit. The construction management plan shall: 1) indicate how construction vehicle traffic will be managed, 2) identify parking areas for on-site construction workers including plans to prohibit parking in residential neighborhoods, 3) indicate construction staging and material storage areas, 4) identify construction trailers and other associated temporary construction management structures, and 5) indicate how the project construction will comply with the Town s Noise Ordinance. 64. Schools Adequate Public Facilities Ordinance: That the applicant shall provide the necessary Certificates of Adequacy of Public Schools prior to issuance of a Zoning Compliance Permit. 65. Traffic and Pedestrian Control Plan: That the applicant shall provide a Work Zone Traffic Control Plan for movement of motorized and non-motorized vehicles on any public street that will be disrupted during construction. The plan must include a pedestrian management plan indicating how pedestrian movements will be safely maintained. The plan must be reviewed and approved by the Town Manager prior to the issuance of a Zoning Compliance Permit. At least 5 working days prior to any proposed lane or street closure the applicant must apply to the Town Manager for a lane or street closure permit. 66. Construction Sign Required: That the applicant shall post a construction sign at the development site that lists the property owner s representative and telephone number, the contractor s representative and telephone number, and a telephone number for regulatory information at the time of issuance of a Building Permit, prior to the commencement of any land disturbing activities. The construction sign may have a

26 maximum of 32 square feet of display area and maximum height of 8 feet. ( (g) of LUMO). The sign shall be non-illuminated, and shall consist of light letters on a dark background. That prior to the issuance of a Zoning Compliance Permit a detail of the sign shall be reviewed and approved by the Town Manager. 67. Open Burning: That the open burning of trees, limbs, stumps, and construction debris associated with this development is prohibited. 68. Detailed Plans: That prior to the issuance of a Zoning Compliance Permit final detailed site plans, grading plans, utility/lighting plans, stormwater management plans (with hydrologic calculations), landscape plans, and landscape maintenance plans shall be approved by the Town Manager. Such plans shall conform to plans approved by this application and demonstrate compliance with all applicable regulations and the design standards of the Land Use Management Ordinance and the Design Manual. 69. As-Built Plans: That prior to occupancy, the applicant shall provide certified as-built plans for building footprints, parking lots, street improvements, storm drainage systems and stormwater management structures, and all other impervious surfaces. The as-built plans should be in DXF binary format using State plane coordinates and NAVD 88. The applicant shall also contact the Town s Engineering and Design Services Division for address assignment of each unit. 70. Vested Right: This Special Use Permit constitutes a site specific development plan establishing a vested right as provided by N.C.G.S. Section 160A and Appendix A of the Chapel Hill Land Use Management Ordinance. 71. Continued Validity: That continued validity and effectiveness of this approval shall be expressly conditioned on the continued compliance with the plans and conditions listed above. 72. Non-Severability: That if any of the above conditions is held to be invalid, approval in its entirety shall be void. BE IT FURTHER RESOLVED that the Council hereby approves the application for a Special Use Permit for the Graduate at 105 Kenan Street. This the day of, 2014.

27 RESOLUTION B (Denying the Special Use Permit Application) A RESOLUTION DENYING AN APPLICATION FOR SPECIAL USE PERMIT FOR THE GRADUATE, 105 KENAN STREET (PIN , PROJECT #14-019) BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that a Special Use Permit proposed by The John R. McAdams Company for The Graduate at 105 Kenan Street, on property identified as a portion of Orange County Property Identifier Number , if developed according to the Site Plan dated May 30, 2014 and the conditions listed below would not: 1. Be located, designed, and proposed to be operated so as to maintain or promote the public health, safety, and general welfare; 2. Comply with all required regulations and standards of the Land Use Management Ordinance; 3. Be located, designed, and operated so as to maintain or enhance the value of contiguous property; and 4. Conform with the general plans for the physical development of the Town as embodied in the Land Use Management Ordinance and in the 2020 Comprehensive Plan. BE IT FURTHER RESOLVED that the Town Council hereby denies the application for a Special Use Permit for The Graduate, 105 Kenan Street. This the day of 2014.

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38 The Graduate Chapel Hill, North Carolina Statement of Justification March 4, 2014 Wintergreen Hospitality (Developer) Cline Design Associates (Architecture/Landscape Architecture) John R. McAdams Company (Engineering)

39 Summary The Graduate is a proposed multi-family residential development with apartments comprised of one bedroom and two bedroom units. With this unit mix, the project aims to foster a vibrant and responsible community for working professionals and graduate students to represent an urban living environment that is vital to downtown. This group of residents will enjoy amenities such as an integrated fitness facility, swimming pool, and both interior and exterior gathering spaces, which will foster an environment of community and socialization. These amenities along with the walkable proximity to essential retail and public services will ideally reduce the dependency on vehicular travel for residents, reducing the long-term carbon footprint of the project. The entire development will be in one building, constructed on the parcel of land behind and to the south of the Franklin Hotel bordered by Kenan Street and Mallette Street. The 0.69 acre site is currently used as a surface parking lot, leased from applicant by three tenants: 1. The Franklin Hotel for overflow parking 2. Downtown merchants for business operations 3. Town of Chapel Hill for public parking Located at a key transitional point within the neighborhood, the Graduate serves as a gateway between the Town Center urban boundary and the adjacent medium-density Cameron-McCauley Neighborhood. The TC-2 zoning of this site encourages further residential development in the central area of Chapel Hill. Therefore rezoning of this property is not necessary. The program of development includes the provision of approximately 15% affordable units, and will utilize the floor area bonus incentive. The proposed development is well served by existing mass transit and is centrally located along the main high-intensity corridor of West Franklin Street within the central business district ofthe Town of Chapel Hill. The site is within walking distance of the University of North Carolina, and it is anticipated the residents of The Graduate will utilize alternate modal means of transportation. The concept and design implementation of the Graduate keeps the 2020 Comprehensive Plan at the forefront and would significantly contribute to Chapel Hill s vision for opportunities and connections within the town and beyond. Located within the Downtown Future Focus Area, the proposed development would capitalize on the opportunities for infill and redevelopment of underutilized sites. Some modifications to the Land Use Management Ordinance are sought in the development of The Graduate. These modifications are identified below and evidence to support the findings of fact is offered for consideration. 2

40 Special Use Permit Required Findings of Fact Finding #1 That the use or development is located, designed and proposed to be operated so as to maintain or promote the public health, safety, and general welfare. The Setting The Graduate will provide residential accommodations to graduate students, visiting professors, and workforce members in an exceedingly low-impact manner due to its density of dwellings and its proximity to other types of land uses. Sited within the increasingly vibrant sub-community of West Franklin Street, a number of restaurants, social gathering spaces and retail options are all within close distances that promote walking over vehicular use. Just steps from Franklin St and within walking distance of Cameron Avenue, the proposed development is in a key location to utilize Chapel Hill s multi-modal transportation system including the F, J and CM lines of Chapel Hill Transit. Additionally, the inclusion of housing invigorates urban businesses, especially the after-hours restaurants and bars. Therefore, The Graduate will also provide critically needed support to existing local business. Traffic Engineering consultant, HNTB, is currently generating a Traffic Impact Analysis. Vehicular access into the site will be from Mallette Street into the middle level of the structured under-building parking garage. Pedestrian access will be from Kenan Street. Parking Management All parking for The Graduate will be off-street in a three-level structured parking garage below the dwelling units. A portion of the provided parking stalls will be shared with the adjacent Franklin Hotel. Recreation Opportunities The Graduate intends to provide an active and responsible urban friendly lifestyle for its young professional and workforce market. Located in the TC-2 district, the proposed development is required to provide a 0.12 ratio of active recreational space to gross land area (GLA). This requirement has been met through internal amenities such as an integrated fitness facility, swimming pool, and both interior and exterior gathering spaces that will foster an environment of community and socialization. These amenities along with the walkable proximity to essential retail and public services will ideally reduce the dependency on vehicular travel for residents, reducing the long-term carbon footprint of the project. Utilities and Town Services Water and sewer service will be provided by OWASA. Duke Energy will provide electricity. The Town will provide fire protection and emergency services. 3

41 Solid waste and recycling will be stored in a designated trash room accessible by collection vehicles via Mallette Street. Waste Industries, a private waste service provider, will provide solid waste management. Orange County will provide recycling services. Stormwater Management Stormwater management facilities will be provided to meet the requirements of the Town of Chapel Hill s ordinance. Due to a slight increase in impervious surface and stormwater runoff, a detention device is proposed to detain and treat total suspended solids (TSS) in the stormwater runoff. Affordable/Workforce Housing Approximately 15% of the units at The Graduate will be designated as affordable housing. This exceeds the 10% required for eligibility in the floor area bonus and supports the Town s goal of achieving a culturally and economically diverse population. 4

42 Finding #2 That the use or development complies with all required regulations and standards of the Land Use Management Ordinance. The Graduate is designed to meet the standards set forth by the Town of Chapel Hill s Land Use Management Ordinance. However, the LUMO adopted in 2003 is currently undergoing an update to, Once again align town development regulations with the community s vision for the future of Chapel Hill. Therefore, some modifications to the dimensional standards of the TC-2 district have been proposed in order to meet the needs of the community. According to section Permitted Modifications of Regulations: Where actions, designs, or solutions proposed by the applicant are not literally in accord with applicable special use regulations, general regulations, or other regulations in this appendix, but the town council makes a finding in the particular case that public purposes are satisfied to an equivalent or greater degree, the town council may make specific modification of the regulations in the particular case. Any modification of regulations shall be explicitly indicated in the special use permit, or modification of special use permit. Section Town Center (TC-1, TC-2, TC-3) of the LUMO defines the intent: The town center (TC) districts are intended to provide for the development of the commercial, service, and social center of Chapel Hill while maintaining its character, its pedestrian-oriented scale, and its nature as a concentration of business, administrative, financial, governmental, and support functions serving the community; and to encourage further residential development in the central area of Chapel Hill. The zoning regulations for the TC districts are designed to achieve the following objectives: Buildings are designed and located so that they provide visual interest and create enjoyable, human-scale spaces. Building design blends with the natural terrain by means such as terracing or other techniques that minimize grading. Designs are compatible, in form and proportion, with the neighboring area. Designers strive for creativity in form and space wherever contrast and variety are appropriate to the larger environment. Buildings and projects include visual variety and also maintain a strong sense of unity. Buildings and projects include a high level of architectural detailing to help maintain a sense of scale. The Graduate is a multifamily residential building with 3 levels of parking below. The materials selected are within the context of its surroundings and speaks to the character of Chapel Hill. The north side of the buildingfaces toward Franklin Street, sitting just behind The Franklin Hotel, the Dead Mule and Chipotle. In keeping with a more urban form, this is the tallest side of the building. The south side of the building faces the Cameron-McCauley historic residential neighborhood, making the proposed development a transition zone between the two districts. For this reason, the south side of the building is stepped back to establish a more human-like scale. However, to establish the density needed to make this project successful, a few modifications are necessary. The requested modifications are described below. 5

43 Building Height and Solar Setbacks According to Table 3.8-1: Dimensional Matrix (Columns F and G), the maximum building heights are as follows: Southern property line: Maximum Primary Height: 35 Maximum Secondary Height: 90 Transition gradient between primary and secondary heights: On South side: 1:1 North, East, and Western property lines: Maximum Primary Height: 44 Maximum Secondary Height: 90 Transition gradients between primary and secondary heights: On East side and West side: 1:1 On North Side (solar gradient): 1.7:1 As part of this Special Use Permit application, the Applicant requests of the Town Council certain extensions as to the transition gradients between primary and secondary heights. The proposed building will not exceed the secondary height limit of 90 ft, stated above. However, - The applicant requests extensions for higher primary heights and steeper transition gradients between the primary and the secondary height limits. On the south side of the building (adjacent to the R-3 neighborhood), the proposed building penetrations outside the envelope of primary-gradient-secondary heights exists but is minimized, so as to minimize the visual effects of massing adjacent to the single-family neighborhood. (The building is also significantly articulated, and is designed to look like more than one building mass, again so as to minimize the visual impact on the single-family neighborhood.) On the north side of the building, the building is proposed to be nearly vertical, to its top proposed height of about 86 feet. This requires an extension of both the secondary height setback gradient, and the solar setback. On the east end (at Mallette Street) the secondary height step-back gradient is requested to be steepened from 1:1 to the proposed 6:1 gradient, and on the west end (at Kenan Street), the secondary height step-back gradient is requested to be steepened from 1:1 to 3:1. The need for these extensions of the primary height and the secondary-height step-back gradients arises from the intent to incorporate a significant amount (15%) of workforce housing, the inclusion of three levels of under-building parking (half of which is below ground level, and also from the narrow configuration of the site. As previously mentioned, the proposed development is a transition zone between the more urban, town center and a historic residential neighborhood. For this reason, the northern edge of the proposed building holds a larger portion of the building envelope. The building setbacks occur along the southern edge to maintain a human scale with the existing neighborhood as it 6

44 transitions toward Downtown. Therefore, in order to achieve the density required for economic sustainability, we are seeking modifications to the building height and setbacks, as illustrated in the SUP Supplemental Design Graphics, Section 10 in the Development Program. The Applicant believes that the compelling purposes of providing housing opportunities within the vibrant West Franklin Street sub-community, and the provision of workforce housing (together with the on-site under-building parking for these uses) justifies the extension of primary height and secondary-height step-back gradient, in these circumstances. Landscape Buffer Requirement: As previously stated, the southern boundary of the property is adjacent to R-3 designated parcels. A 10 landscape buffer is required along this entire edge. Proposed: In order to achieve the desired density, it is necessary to push the building envelope to its maximum building setback of 8 feet off the southern property line. Within the 8 foot building setback, 5 of fire access is needed and must remain clear. Therefore, in lieu of compliance with the required 10 landscape buffer, an alternative buffer in the form of a decorative wall is being proposed. Justification: The decorative wall will accommodate the same purpose as the landscape buffer defined in section 5.6.1: Buffers shall be required to separate a proposed development from adjacent major streets and different adjacent land uses or zoning designations in order to minimize potential nuisances such as the transmission of noise, dust, odor, litter, and glare of lights; to reduce the visual impact of unsightly aspects of adjacent development; to provide for the separation of spaces; and to establish a sense of privacy. Section5.6.2 (d) of the LUMO offers a variety of options to achieve the same or higher level of screening: Width and screening specifications for each buffer type shall be detailed and illustrated in the design manual. Screening required within buffers is intended to provide separation of spaces without necessarily eliminating visual contact between the spaces, and may consist of existing vegetation, planted vegetation, a landscaped earth berm, a decorative wall, a wood fence, or a combination of the above. Any of the options specified in the design manual for the required buffer type shall satisfy the buffer requirements of this section. Section offers that: In lieu of compliance with the above buffer yard and screening requirements, a developer may submit to the community design commission for its approval a detailed plan with specifications for landscaping and screening which will afford a degree of buffering and screening equivalent to or exceeding that provided. 7

45 Additionally, the width and screening specifications of required buffers are addressed by the Design Manual. According to section of the LUMO, the design manual shall maintain the flexibility to allow modifications deemed acceptable by the town manager: The town council shall adopt and maintain a design manual, which shall contain specific design and construction standards. Such standards shall be in accord with the general performance standards contained herein, and shall reflect, where applicable, generally accepted design and construction practices and techniques. The design manual shall contain sufficient flexibility in the application of specific standards so as to permit modifications of the standards where such modifications have been determined by the town manager to be equally or more appropriate to safe, orderly, energy-efficient, and visually harmonious development due to particular conditions of a development site, and that such modifications continue to be in conformance with the general performance standards contained herein. Proposed Floor Area Requirement: According to Table 3.8-1: Dimensional Matrix (Column L), the maximum floor area ratio is However, in order to achieve the desired density, we will be utilizing the Residential Construction in Town Center Districts incentive as well as the floor area bonus allowed for providing affordable units. The following sections of the LUMO describe these incentives: Section3.8.7 Incentive for Residential Construction in Town Center (TC) Districts: In the case of multifamily dwellings in the TC-2 district, up to 5% or 1,000 sf of floor area, whichever is less shall be excluded from the floor area ratio calculation. Additionally, both the LUMO and 2020 Comprehensive Plan express the Town s goal to increase the amount of affordable or workforce housing to preserve and promote diversity within the community. The Graduate is dedicated to helping the Town achieve these goals. We will also utilize the floor area bonus described intable Inclusionary Zoning Requirements: Proposed: Floor area bonus: Maximum number of affordable units proposed: 97 x 15% = 14 4,250 sf x 14 units = 59,500 sf bonus (we would only use approx. 49,000 sf) (FAR 1.97) x (Gross Land Area 33,106 sf ) = 65,219 sf + Floor Area Bonus = 59,500 sf Maximum Floor Area Allowed = 124,719 sf Floor Area Proposed = 100, ,000 sf. As evidenced above, the applicant is proposing a floor area well below the maximum allowed. 8

46 Finding #3 That the use or development is located, designed and proposed to be operated so as to maintain or enhance the value of contiguous property, or that the use or development is a public necessity. The properties contiguous to The Graduate include The Franklin Hotel, the Dead Mule Club (a night club) and Chipotle restaurant to the north; Panera Bread restaurant to the east; and single family residential homes to the south and west. In addition to its economic contribution to the Town, The Graduate will increase the value of adjacent properties in the following ways: By bringing more people downtown,offering more business for the adjacent restaurants without providing a competing use By following the vision of the established Comprehensive Plan, which was developed under the specified goals of protecting existing residences and preserving property values By creating additional housing options, taking some of the pressure off of the adjacent historic neighborhood. 9

47 Finding #4 That the use or development conforms with the general plans for the physical development of the Town as embodied in the Land Use Management Ordinance and in the Comprehensive Plan. Through the Town s Land Use Management Ordinance and 2020 Comprehensive plan, Chapel Hill has defined clear goals for the future, including a vibrant, diverse, pedestrian-friendly and accessible Downtown with opportunities for growing office, retail, residential and cultural development.with its TC-2 zoning designation and proximity to Franklin Street, the Graduate property is a significant part of Chapel Hill s downtown district. The 2020 Comprehensive plan identifies it as a future focus area with opportunities for compact, connected growth. Geared toward graduate students and young professionals, the connection between the town and the University will be strengthened, providing opportunities for economic development. furthermore, the Graduate offers additional workforce housing, one of the big ideas described in the Comprehensive Plan in order to help accommodate a variety of people who work in town. This will work towards the relief of traffic congestion and vehicular parking. The Graduate is designed to promote Chapel Hill s vision for opportunities and connections within the town and beyond. -END- 10

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