CITY PLANNING COMMISSION AGENDA

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Page 41 CITY PLANNING COMMISSION AGENDA ITEM : D STAFF: RYAN TEFERTILLER FILE NO: CPC UV 13-00070

1 Page 41 CITY PLANNING COMMISSION AGENDA ITEM : D STAFF: RYAN TEFERTILLER FILE NO: CPC UV QUASI-JUDICIAL PROJECT: APPLICANT: OWNER: BALLY PLAZA USE VARIANCE JAY CARLSON & BOB NOLETTE PACE BALLY PLAZA, LLC SITE

2 Page 42 PROJECT SUMMARY: 1. Project Description: This project consists of a use variance which includes a development plan. Approval of this project would allow a portion of the existing 100,000 square-foot building to be used for warehouse and light manufacturing uses. A use variance was previously approved in 1998 to allow this same space to be used for mattress warehousing and distribution. The site is zoned PBC/AO (Planned Business Center with the Airport Overlay) which does not permit the proposed uses. 2. Applicant s Project Statements: (FIGURE 1) 3. Planning and Development Department s Recommendation: Approval of the use variance application with conditions and technical modifications. BACKGROUND: 1. Site Address: 1805 S. Academy Blvd. 2. Existing Zoning/Land Use: PBC/AO/UV (Planned Business Center with the Airport Overlay and a prior Use Variance) / Commercial Center (FIGURE 2) 3. Surrounding Zoning/Land Use: North: PBC/AO and PIP2/AO (Planned Business Center with the Airport Overlay and Planned Industrial Park with the Airport Overlay) / commercial uses and vacant South: PBC/AO and PIP2/AO (Planned Business Center with the Airport Overlay and Planned Industrial Park with the Airport Overlay) / commercial and warehouse uses and vacant East: PIP2/AO (Planned Industrial Park with the Airport Overlay) / warehouse uses and vacant. West: PBC/AO (Planned Business Center with the Airport Overlay) / commercial uses and vacant 4. Comprehensive Plan/Designated 2020 Land Use: Mature Redevelopment Corridor 5. Annexation: Pikes Peak Park Addition #10 (April 1971) 6. Master Plan/Designated Master Plan Land Use: Centre in Gateway Park / Commercial 7. Subdivision: Pace Plaza Filing No. 2 (December 1987) 8. Zoning Enforcement Action: Prior enforcement actions have occurred, but no current violations are present. 9. Physical Characteristics: The property is fully developed with a commercial center. STAKEHOLDER PROCESS AND INVOLVEMENT: The standard City notification and posting process was used with 16 property owners within 500 feet of the project notified at the time of submittal. Staff received no input or questions from stakeholders. All applicable City agencies and departments were asked to review and comment; the only agency or department that submitted comments was Comprehensive Planning (FIGURE 3). A few Land Use Review concerns appear below as technical and informational modifications to the use variance development plan. Prior to the City Planning Commission hearing, the site will be posted and postcards mailed once again.

3 Page 43 ANALYSIS OF REVIEW CRITERIA/MAJOR ISSUES/COMPREHENSIVE PLAN & MASTER PLAN CONFORMANCE: Pursuant to City Code Section B, the following criteria must be found in the affirmative in order to approve a use variance: a) That there are exceptional or extraordinary circumstances or conditions applicable to the property involved or to the intended use of the property that do not apply generally to the property or class of uses in the same zone so that a denial of the petition would result in undue property loss; and b) That such variance is necessary for the preservation and enjoyment of a property right of the petitioner; and also c) That such variance will not be detrimental to the public welfare or convenience nor injurious to the property or improvements of other owners of property. 1. Review Criteria / Design & Development Issues: The subject property has had a history of Land Use approvals that document the need for the requested application. The subject building was constructed in 1985 and utilized as a 100,000 square-foot Pace Membership Warehouse. By the late 1990 s the membership warehouse use had been terminated and new users were leasing the facility. In 1998 the City approved a use variance to allow the Sealy Mattress Company to warehouse mattress components in the rear (eastern) 70,000 square feet of the building. The front (western) 30,000 square feet of the building was retained as commercial space. The 1998 use variance specifically prohibited manufacturing or assembly to occur on the property. There have also been other use variances and conditional uses approved in the Bally Plaza commercial center and the nearby areas. In 1997, a conditional use permit was approved allowing auto sales at 1739 S. Academy Blvd. which is in the building immediately north of the subject property. In 2001, a use variance was approved allowing that same property to conduct auto repair. In 2011, a use variance was approved allowing equipment rental and sales on a PBC zoned property at 2526 S. Academy Blvd., which is just south and across the street from the subject property. As illustrated on the plan which accompanies the application (FIGURE 4), that portion of the building to be used for manufacturing and warehouse uses is found at the rear (eastern) portion of the building. The prospective tenant, BMC (Building Materials and Construction Services), is initially leasing roughly 47,500 square feet of space which will include warehouse space, manufacturing space, and a showroom area (FIGURE 5). The proposed manufacturing activities will largely be for construction related products such as windows and doors. Because the tenant may wish to expand into the rest of the Sealy Mattress area, bringing their total area to roughly 70,000 square feet, a note is to be added to the plan clarifying that this request covers a maximum of 70,000 square feet of the existing 100,000 square-foot building. BMC currently operates a facility at 870 Paonia, which is outside the City boundaries to the north and east of Powers Blvd. and Platte Ave. The proposed operation on S. Academy would not replace the Paonia facility, but would be in addition to their current facilities. While the proposed warehouse and manufacturing uses are prohibited in the PBC zone, there are a number of factors that justify the request. The subject property is a 100,000

4 Page 44 square foot building that has been used previously for warehouse uses. The size, building type, and orientation of the space limit its function for more traditional PBC uses. There are few, if any, commercial and/or retail uses that could utilize the building given these factors. As such, Staff finds that the subject property has unique and exceptional circumstances that support the proposed prohibited use. Given the physical and market constraints applicable to the site, the requested variance can be justified in order to enjoy reasonable use of the property. The denial of the request could even be considered as harmful to the adjacent properties, not protecting them as envisioned by limiting the use of the property to PBC uses only. Taken together, these factors lead staff to conclude that the use variance criteria found in Section of City Code are met. 2. Conformance with the City Comprehensive Plan: This project is consistent with the City s Comprehensive Plan objectives, policies and strategies. Those statements that support the proposed project include: Objective LU4: Encourage Infill and Redevelopment: Encourage infill and redevelopment projects that are in character and context with existing, surrounding development. Infill and redevelopment projects in existing neighborhoods make good use of the City s infrastructure. If properly designed, these projects can serve an important role in achieving quality, mixed-use neighborhoods. In some instances, sensitively designed, high quality infill and redevelopment projects can help stabilize and revitalize existing older neighborhoods. Objective LU 8: Integrate Employment Centers into the Wider City Land Use Pattern Colorado Springs has been successful at attracting and retaining major employers and growing small businesses, which has led to a healthy, thriving economy. However, the needs of employers, such as land requirements, location considerations, and availability of housing, must be balanced with overall quality of life issues. Employment activities that are not integrated into the community lead to higher infrastructure costs, increase traffic and congestion, and create a sense of separation from the community. Employment centers should be developed so they meet the needs of the employers, while at the same time contribute to the quality of life in Colorado Springs. The City's efforts should focus on creating opportunities for quality employment at various economic levels for its residents, and on environmentally responsible industries that make a positive contribution to the community. Policy LU 801: Locate New Employment Activities within Mixed-use Centers Locate concentrated employment activities within designated mixed-use centers whenever possible. Employment centers will be designed for basic employment uses including light manufacturing, offices, corporate headquarters, as well as other uses of similar character. Include a variety of complementary uses, such as business services, lodging for business travelers, convenience retail, childcare, restaurants, and multifamily housing. Employment

5 Page 45 activities that cannot be located within mixed-use centers due to large, single employer campuses, or environmental, industrial, and operational constraints, should be planned within the context of complimentary mixed uses in nearby activity centers. It is the finding of the Planning Staff that this request complies with these specified City Comprehensive Plan goals, objectives and policies. 3. Conformance with the Area s Master Plan: This portion of the S. Academy Blvd. corridor has experienced challenges over the past decade or more. High vacancy rates, lower median incomes, and higher crime rates in the corridor led to the City authored Academy Boulevard Corridor Great Streets Plan which was adopted by City Council as a land use master plan element in September of The plan includes significant analysis of the context and challenges present in the area. One key outcome of the study was the establishment of the 12 Essential Questions that are to be asked for all proposals affecting the corridor (FIGURE 6). Comprehensive Planner Carl Schueler addresses those questions as well as other issues in his comments to staff included as FIGURE 3. Mr. Schueler s recommendation to restrict outdoor storage is reflected in the proposed conditions of approval found at the conclusion of this report. STAFF RECOMMENDATION: Item: D CPC UV Use Variance Approve the proposed use variance based upon the finding that the plan complies with the criteria in City Code Sections and and is subject to compliance with the following conditional of approval and technical and informational plan modifications: Conditions of Approval: Outdoor storage of products, supplies, and merchandise is prohibited. Technical and Informational Modifications to the Use Variance Plan: 1. Add file number CPC UV to the bottom right hand corner of the plan sheets. 2. Add a note to the plan reading the proposed warehouse and manufacturing use may expand to include the eastern most 70,000 square feet of the building. 3. Add the property address to the plan. 4. Correct the legal description for the property to clarify that this plan applies only to Lot Correct the property zoning to read PBC/AO/UV. 6. Correct the floor plan exhibit to clarify that the space immediately west of the proposed use is vacant and may be used in the future by the proposed tenant.

6 CPC Agenda Page 46 BALLY PLAZA USE VARIANCE 1805 S. Academy Blvd. Project Statement: Description: The owner of Bally Plaza has agreed to the terms of a lease with BMC, a national building products company to lease approximately 43,500 square feet out of the 70,OOOsquare foot warehouse space formerly occupied by Sealy Warehouse in Bally Plaza Shopping Center.The Sealy Warehouse was under a use variance for warehouse use only. BMC will manufacture windows and doors in this facility and warehouse windows and doors and fireplace inserts in this facility and have a retail showroom for the sale of all of the above in this facility. BMC's current production facility is in the county on Paonia Street,this will be an additional facility not a relocation.this facility will employ 50 new workers and will be located in the City of Colorado Springs bringing in significant new tax dollars. The owner of Bally Plaza is requesting a use variance in the existing PBC zone to allow for warehouse use in the entire space formerly occupied by Sealy Warehouse and for a light manufacturing use in the space to be occupied by BMC. Justification: l.there ARE exceptional and extraordinary circumstances regarding this portion of the property that do not apply generally to the rest of the property or to the class of uses in the PBC zone. The building at 1801/1805 South Academy Blvd was originally built to house a Pace membership warehouse, a 100,OOOsq.ft. warehouse style retail concept very similar to the Sam's Warehouse's in town today where retail products are stored in a warehouse and sold to the public in larger size or quantity at discount prices.at 100,OOOsq.ft. the size of this building is exceptional in a single anchor retail center such as Bally Plaza,most anchor tenants in a like center would be in the 30-60,OOOsq.ft. range. When Pace closed, the front portion ofthat building was leased to Bally Fitness(30,OOOsq.ft.) and the back portion of that building was leased to Sealy Mattress Company as a warehouse for their mattress materials,the mattresses were manufactured elsewhere.sealy occupied the warehouse under a use variance for warehouse. This warehouse use has worked well for the property owner and the surrounding property owners.the warehouse space "faces" Murray Blvd. where all of the current property is PIP-2 and occupied by light manufacturing users and warehouse users.virtually all adjacent land behind Bally Plaza is zoned PIP-2.The location of the warehouse portion of our building being surrounded by PIP-2 users while being located in a PBC zone is extraordinary and has proven to work. The retail portion of the shopping center is not affected by the warehouse portion of this building because the access to the loading docks is not directly connected to the retail portion of the shopping center,trucks cannot travel from the loading dock area to the retail area of the shopping center without using public streets. Because all of the surrounding properties behind the shopping center are zoned PIP-2 allowing light manufacturing and warehousing and because this portion of the building is segregated from the rest of the shopping center and is without retail exposure a denial of the light manufacturing and warehouse use would result in undue property 10ss.This 70,OOOsq.ft. portion of the shopping center has been vacant for 3 years while we searched for retailers or warehouse only users to occupy. FIGURE 1

Page 47 Approval of this use variance fits with the goals of the Academy Boulevard Corridor Great Streets Plan regarding Dynamism,will bring 50 new jobs to the City and will bring in tax dollars to

7 Page 47 Approval of this use variance fits with the goals of the Academy Boulevard Corridor Great Streets Plan regarding Dynamism,will bring 50 new jobs to the City and will bring in tax dollars to the City that currently are paid only to the county. 2. This use variance is necessary for the preservation and enjoyment of a property right of the owner of Bally Plaza in that without this use variance the property could remain vacant for years to come and deprive the owner the ability to produce income from his commercial property. 3.Granting of this use variance will not be detrimental to the public welfare or convenience nor injurious to the property or improvements of other owners of property because all adjacent property behind the shopping center is currently used and zoned for uses included in the requested use variance and because the retail portion of the shopping center is segregated from this portion of the center and will therefore not detrimentally affect the public welfare or convenience. Issues: Because this property sits on the edge of an area that could be defined as a D-1 area in the Academy Boulevard Corridor Great Streets Plan, creating uses and users in this property that would leave this property with future flexibility to accommodate changing future land uses in the area would be a benefit for the ABCGSP. None ofthe improvements or infrastructure required to house BMC in this property will restrict the propertie's future use.aii equipment used by the tenant will be non-permanent and removable. There will be no outdoor storage related to this property or use variance. The tenant has assured us that they do not use any equipment or processes that create noise or vibration that would disturb anyone outside of the premises or adjacent to the premises or adjacent to the property. FIGURE 1

8 Page 48 FIGURE 2

CPC Agenda Page 49 CPC UV DP 13-0070- BMC at Bally Plaza Comprehensive Planning has th~ I following comments on this Use Variance Request 1.

9 CPC Agenda Page 49 CPC UV DP BMC at Bally Plaza Comprehensive Planning has th~ I following comments on this Use Variance Request 1. The property is depicted as Mature/Redevelopment Corridor in the 2001 Comprehensive Plan, having been given that designation by City Council in The proposed light manufacturing land use can be consistent with this designation. 2. The property is included in the Academy Boulevard Corridor Great Streets Plan which was adopted as a publically initiated master plan in This document is intended to augment the Comprehensive Plan for this 12-square mile planning area. It does not depict the subject property within an intersection specific node, but does include it within a large "Regional Activity Center" designation centered on the intersection centered on the intersection of Fountain Boulevard and Academy. The Plan's Short Term Recommendations specifically include the following language; "Encourage Continuing Adaptive Reuse of Shopping Center" The longer term recommendations for this larger area include supporting potential development of the vacant and developed property in this vicinity as part of one or more integrated mixed use projects. 3. The Great Streets Plan recommends mixed use adaptation of former retail spaces with more of an orientation and focus on the roadway, as applicable. This proposed use of the back part of the Bally's (former Pace Warehouse) space could be considered consistent particularly because it will "prune back" some excess retail space with while preserving the Academy-oriented in-line retail frontage. As we understand it, a significant number of primary or somewhat primary jobs will be created within the Corridor, with a corresponding increase in economic vitality. Because neither the fagade nor the interior structure of the building is going to be substantially altered, this use also preserves options for more intensive and extensive redevelopment at some future point. 4. The Academy Plan includes a series of 12 essential questions aimed at evaluating whether a proposed project or action will ultimately further the goals of the Great Streets Plan. These are included as an attachment. In addition to generally meeting the "do no harm" default condition embodied in Question # 12, the proposed use should also more actively support other questions including #8 and #9 pertaining to business investment, and more indirectly support a few of the others. 5. In order to remain consistent with the vision for the Corridor, it will be important to condition any approval to limit/mitigate outside storage of materials, waste and large vehicles in all locations, but especially on the Academy side of the property. FIGURE 3

10 Page 50 FIGURE 4

11 Page 51 FIGURE 5

12 CPC Agenda Page Essential Questions A key element of this Plan is a series of questions that should be asked of and responded to by all private development or public investment proposals of any consequence with a potential impact on the Corridor. Activities and projects with a preponderance of affirmative responses to these questions would be consistent with the vision, goals, and objectives of the Academy Boulevard Corridor. Questions to Be Asked of all Proposals Affecting the Corridor 1. Will this result in or support population and/or employment density, and preferably both, focused toward the Corridor and its emerging nodes and robust transit facilities? 2. Will this promote horizontal and/or vertical mixed uses especially in association with nodes and transit facilities? 3. Will this contribute toward reducing the perceptual width of the Academy Boulevard and/or enhance its attractiveness as a multi-modal Corridor? 4. Will this encourage or allow for multi-modal transportation options and access? 5. Will this enhance local street and non-motorized connectivity between and among businesses, neighborhoods, and the Corridor, and in particular will it promote a more walkable community? 6. Will this positively contribute to a more attractive, functional, vital and secure public realm? 7. Will this support Neighborhood Oriented Development, as defined in this Plan, including supporting the employment, service, transportation and community development needs of existing and future residents, and will it contribute to neighborhood identity and engagement? 8. Will this encourage the retention and expansion of existing businesses within the Corridor and primary or professional employment in particular? 9. Will this result in and/or likely attract new business investment to this area, attract customers from throughout the region and contribute to an enhanced tax base within the Corridor? 10. Can this be expected to improve public safety and security within the Corridor? 11. Is it likely that the project or action will result in a long term public service and fiscal benefit to the Corridor and/or the general City through any net-positive combination of leveraged public investments, increased revenues available for facilities and services benefitting the public, reduced public service and facility costs, and improved public service efficiency? 12. For projects and actions that do not positively respond to many of the above questions, and especially interim activities, can they be accommodated without precluding the ultimate vision for the Corridor? FIGURE 6

CITY PLANNING COMMISSION AGENDA ITEM NO: 7 STAFF: ERIN MCCAULEY FILE NO: AR NV (AP) QUASI-JUDICIAL

Page 98 CITY PLANNING COMMISSION AGENDA ITEM NO: 7 STAFF: ERIN MCCAULEY FILE NO: AR NV 08-00592 (AP) QUASI-JUDICIAL PROJECT: APPELLANT: OWNER: 555-559 S. 8 TH STREET PARKING VARIANCE 8 TH AVENUE, LLC THJ