Page 1 – Comprehensive Plan Conformance 20007, Gorilla Flats Redevelopment Project

COMPATIBILITY WITH THE COMPREHENSIVE PLAN This project is consistent with the Comprehensive Plan as it will contribute to the continued strengthening of the downtown core through infill residential development and is also compatible with the Downtown Master Plan and Antelope Valley Redevelopment Plan which promote diverse housing close to Downtown Lincoln.

LINCOLN/LANCASTER COUNTY PLANNING COMMISSION STAFF REPORT FROM THE LINCOLN/LANCASTER COUNTY PLANNING DEPARTMENT, 555 S. 10TH STREET, SUITE 213, LINCOLN, NE 68508

APPLICATION NUMBER Comprehensive Plan Conformance 20007

FINAL ACTION? No

DEVELOPER/OWNER The Gorilla Apartments LLC

PLANNING COMMISSION HEARING DATE June 10, 2020

RELATED APPLICATIONS CZ08066B

PROPERTY ADDRESS/LOCATION 2226 R Street

RECOMMENDATION: IN CONFORMANCE WITH THE COMPREHENSIVE PLAN

BRIEF SUMMARY OF REQUEST Review as to conformance with the 2040 Lincoln-Lancaster County Comprehensive Plan, a proposed amendment to the Antelope Valley Redevelopment Plan that identifies the Gorilla Flats Redevelopment Project. The Project includes a mixed use redevelopment located west of North 23rd Street on the north side of R Street. The proposal includes a new twelve unit apartment building and an existing 1,025 square foot commercial building.

JUSTIFICATION FOR RECOMMENDATION The Project is consistent with the Comprehensive Plan, Downtown Master Plan, and the Antelope Valley Redevelopment Plan. It will provide in-fill residential dwelling units in a mixed use development with close proximity to Downtown Lincoln.

APPLICATION/STAFF CONTACT Ernie Castillo City of Lincoln Urban Development Dept (402) 441-7855 ecastillo@lincoln.ne.gov

Page 2 – Comprehensive Plan Conformance 20007, Gorilla Flats Redevelopment Project

COMPREHENSIVE PLAN SPECIFICATIONS: p. 1.9 The area is shown as Urban Density Residential on the Future Land Use map. p. 2.7 Lincoln will continue to have managed and contiguous growth, including strengthening our Downtown core. p. 2.8 Mixed use redevelopment, adaptive reuse, and well-designed and appropriately-placed infill development,

including residential, commercial and retail uses, are encouraged. p. 5.4 The City should preserve and enhance Downtown’s role as...A major focus for new residential reuse, infill, and

redevelopment. p. 6.1 The primary focus for new dwelling units is the “Greater Downtown” which includes Downtown proper,

Antelope Valley, the Haymarket, South Haymarket, Telegraph District and Innovation Campus. p. 6.2 Mixed Use Redevelopment should…Target existing undeveloped or redeveloping commercial and industrial

areas in order to remove blighted conditions and more efficiently utilized existing infrastructure. p. 6.3 Support development and implementation of the Downtown Master Plan, South Haymarket Neighborhood Plan

and the Antelope Valley Redevelopment Plan. p. 6.3 Strategies for Greater Downtown...Maintain the urban environment, including a mix of land uses with a major

focus on residential uses. p. 7.9 Preserve, protect and promote the character and unique features of urban neighborhoods, including their

historical and architectural elements. DOWNTOWN MASTER PLAN SPECIFICATIONS: p. 4.1.2 Downtown is surrounded by diverse neighborhoods whose residents are an integral part of the Downtown

economy. People who live in these neighborhoods work, visit and play, and shop in Downtown. p. 4.1.2 Downtown is stronger when the surrounding neighborhood residents have easy connections to jobs, services,

and retail. Getting around by bike and on foot is an increasingly important quality of life consideration…Neighborhoods to the east, including Malone, Hartley, Hawley and Woods Park rely on east/west roadway connections.

p. 4.1.2 Safely connecting adjoining neighborhoods to the core enables workers to live near jobs without having to live

in the Downtown Core. Adjacent neighborhoods offer a range of housing including more affordable options for the City’s workforce.

p. 4.1.3 Housing with diverse price points that include affordable and market rate will invite a wide variety of skill

sets, including both professional and service workers that can support the city’s economic growth. Many cities across the country are providing incentives to stimulate the housing market in downtowns, particularly for mixed-income and affordable housing.

ANTELOPE VALLEY REDEVELOPMENT PLAN SPECIFICATIONS: p. 55 Neighborhoods: includes North Bottoms, Clinton, Malone/Hawley, Woods Park, Near South and Downtown…The

Redevelopment Plan attempts to conserve desirable characteristics of Antelope Valley’s established residential and commercial communities, while shaping new development to create more livable neighborhoods…The various residential future land uses encourage restoring, updating and renovating the many older viable neighborhood homes.

p. 66 Guiding Land Uses and Design Principles, A. General Principals, 2. New Residential Products – Encourage a range of housing types (single-family, apartments, row homes, granny flats, condominiums and live/work units)

Page 3 – Comprehensive Plan Conformance 20007, Gorilla Flats Redevelopment Project

giving citizens of different incomes, ages and family sizes a wide range of choices.

ANALYSIS

1. This is an amendment to the Antelope Valley Redevelopment Plan that identifies the Gorilla Flats Redevelopment Project. The Project will include the redevelopment of property located west of North 23rd Street on the north side of R Street into a twelve unit apartment building along with an existing 1,025 commercial building. This property consists of approximately 0.32 acres. A single family home on the west side of the commercial building has been removed with the commercial building retained. Otherwise, the property is vacant.

2. The Project will include four one-bedroom units, two loft units, and six two-bedroom units. The Project will

provide one parking stall for each dwelling unit of housing constructed. This parking will be provided on the north side of the property with alley access. No parking is proposed for the existing commercial use, which the 1,025 square foot commercial use does not presently have any off street parking and is legal nonconforming use.

3. The goal of the Project is to strengthen the Lincoln community by providing market rate, in-fill residential dwelling

units through the redevelopment of property within close proximity to Downtown Lincoln. 4. The Project is consistent with goals in the Comprehensive Plan. The project will create additional market rate

housing within walking distance of the downtown. This housing is residential infill which is encouraged by the Comprehensive Plan as part of the “Greater Downtown” which includes Antelope Valley.

5. The Downtown Master Plan identifies connections to adjacent neighborhoods offering a range of housing for the

City’s workforce and notes that these neighborhoods are an integral part of the Downtown economy.

6. The Project is consistent with the Antelope Valley Redevelopment Plan, which encourages a range of housing types (single-family, apartments, row homes, granny flats, condominiums and live/work units) giving citizens of different incomes, ages and family sizes a wide range of choices and to support private sector residential development in the redevelopment area.

7. The estimated total cost to implement this project is $2.1 million. The new private investment expected to implement this project is estimated at approximately $2.1 million, which will generate an estimated $180,000 in funding for public improvements and enhancements. Publicly funded redevelopment activities may include site acquisition, environmental studies and surveying, site preparation and remediation, utility improvements or relocation, energy efficiency improvements, facade enhancements, and other public improvements.

8. CZ08066B Antelope Village is the related Amendment to the Antelope Village Planned Unit Development (PUD).

This property is included in the proposed R-6 to R-6 PUD change of zone area which includes the south half of the block in question. The purpose of including the property in the Antelope Village PUD is in order to reduce parking requirements to one parking stall per dwelling unit along with the parking reduction to zero for the existing commercial use. Required parking otherwise would be 1.75 stalls and 1 per 600 square feet per residential dwelling and commercial square footage, respectively.

9. The project is required to be reviewed by the Urban Design Committee. It was reviewed at the June 2, 2020 meeting of the Urban Design Committee (see Excerpts of Meeting Record attached).

EXISTING ZONING: R-6 Residential EXISTING LAND USES: Commercial Bakery, Vacant SURROUNDING LAND USE AND ZONING: North: Parking, Vacant R-6 Residential District

Page 4 – Comprehensive Plan Conformance 20007, Gorilla Flats Redevelopment Project

South: Duplex, Single Family R-6 Residential District East: Church R-6 Residential District West: Apartments R-6 Residential District APPROXIMATE LAND AREA: 0.32 acres Prepared by ___________________________ George Wesselhoft Planner (402) 441-6366 or gwesselhoft@lincoln.ne.gov May 28, 2020 Applicant: Urban Development Department City of Lincoln 555 S. 10th Street, Suite 205 Lincoln, NE 68508 Contact: Ernie Castillo (402) 441-7855 or ecastillo@lincoln.ne.gov

F:\DevReview\CPC\20000\CPC20007 Gorilla Flats Redevelopment.gjw.docx

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Amendment to Antelope Valley Redevelopment PlanGorilla Flats Redevelopment Project

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Antelope ValleyRedevelopmentPlan Boundary

Gorilla Flats Project

ANTELOPE VALLEY REDEVELOPMENT PLAN LINCOLN, NE

Publicly funded redevelopment activities may include site acquisition, environmental studies and surveying,

site preparation and remediation, utility improvements orrelocation, energy efficiency improvements, façade en-hancements, street and streetscape improvements, andother public improvements related activities and costs aspermitted under the Community Development Law.

The Urban Development Department believes that theprivate and public improvements proposed in this planamendment would not occur �but for� the utilization ofTIF. Project improvements would not be possible tothe extent shown without TIF.

Hepburn Square Cost Benefit Analysis

Upon completion of construction, the assessed value ofthe property within the Project Area is estimate to in-crease by $925,000. This will result in an increase ofannu-al property tax collections of $18,639 for a totalincrease over the 15 year TIF Period of $279,585 with$191,708 available to pay back TIF funds.

Public Infrastructure and Community Public ServiceNeeds Impacts: It is not anticipated that the Project willhave an adverse impact on existing publicinfrastructure, nor that the Project will have an adverseimpact on City services, but instead will generateadditional revenue providing support for those services.

Employment within the Redevelopment Area: It is notanticipated that the Project will have an adverse impacton employers and employees of firms locating orexpand-ing within the boundaries of the Project Area. Itis antici-pated that the construction of a multi-familyresidential building may create additional part timeemployment in the Project Area.

Employment in the City outside the RedevelopmentPro-ject Area. The Project is not expected to adverselyaffect

employment in the City outside the Antelope ValleyRe-development Area.

Impacts on the student populations of school districtswithin the City: The Project is not expected to have a ma-terial impact on student populations of school districts inthe City of Lincoln. The Project does consist of 12residen-tial dwelling units and some portion of theseunits may become occupied by families with children,however, it is unlikely that all or a majority of the unitswould be occu-pied by families or that the number ofchildren would have a material impact on the populationof any school within the City.

Other Impacts: The development of the Project Area willcreate additional market rate housing within walking dis-tance available to new households and those who workin the downtown, Antelope Valley and N. 27th Streetareas. Moreover, this will expand affordable housingoptions available in Lincoln and integrate market rateand afford-able housing. The Project will have a positiveimpact on housing affordability issues the City iscurrently experi-encing.

X. Gorilla Flats Redevelopment Project

1.Project Description

The Gorilla Flats Redevelopment Project (�Project�) in-cludes redevelopment of the properties located at 2226,2230, and 2236 R Street into a twelve unit, mixed-useapartment building and an approximate 1,025 square feetcommercial building. The Project proposes to includefour one-bedroom units, two loft units, and six two-bedroom units. The project is generally located on theblock bounded by 23rd Street, 22nd Street, Q Street and RStreet and covers approximately 0.31 acres. (See ProjectArea Map on the next page.) The Project Site is legallydescribed as Lots 29, 30, 31 and 32, Block 8, Lincoln Driv-ing Park Company�s First Subdivision, Lincoln, LancasterCounty, Nebraska.

The goal of this project is to strengthen the Lincoln com-munity by providing market rate, in-fill residential dwell-ing units through the redevelopment of property n closeproximity to Downtown Lincoln. Aside from the existingcommercial building, the project area is currently vacant.(See Current Land Use Map on the next page.) The ProjectSite is surrounded by residential uses. The remainder ofthe block - to the west of the Project Site � is a large apart-ment building. To the south, across R Street, is residential.The Project will make a positive contribution to the areaby redeveloping majority vacant and underutilized spacesto provide new market-rate housing opportunities andthe addition of a commercial use to the neighborhood.

Description Amount

Base Value

Current Assessed Value $75,000

Not to ProtestValue

Not to Protest Value $1,000,000

Increment Value =

New Assessed Value – Base Value $925,000

Annual TIF Increment Generated =

Increment x 2.0151150% $18,639

Estimated TIFAvailable =

Annual Increment x 14 years @ 5% $191,708

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ANTELOPE VALLEY REDEVELOPMENT PLAN LINCOLN, NE

The Project is consistent with thegoals of the Antelope Valley Rede-velopment Plan and is intended tosupport private sector residentialdevelopment in the redevelop-ment area. Publicly-funded rede-velopment activities may includesite acquisition, streetscape andother public area enhancements,energy efficiency improvements,façade enhancements, and otherpublic improvements, related activ-ities and costs permitted under theCommunity Development Law.

2.Statutory Elements

Property Acquisition, Demolitionand Disposal: The proposed rede-veloper owns the Project Site.(The City does not intend to ac-quire property nor would the Cityuse eminent domain for the Project). Theland is currently vacant aside from the com-mercial property at 2230 R Street and no re-location of individuals or businesses will berequired.

Population Density: The population densityof the Project Area will increase slightly asthe property is currently vacant with no ten-ants or residents. The project site will beredeveloped into twelve residential units.

Land Coverage: Land coverage and buildingdensity will be altered with the constructionof one new multi-family building on the Pro-ject Site. For future land use, see the map onthe next page.

Zoning, Building Code and Ordinances: ProjectSite is currently zoned R-6 Residential Dis-trict. The Project is a permitted use for thisDistrict. The Redeveloper will seek an amendment to theAntelope Village PUD to incorporate the Project Site inorder to reduce parking requirements from 1.75 stalls perunit to one parking stall per unit of housing. There is alsoa pre-existing legal nonconforming commercial use thatwill be retained with the project. This use does not pres- ently have any off street parking on the site. All applica-ble building code requirements and ordinances will besatisfied.

Traffic Flow, Street Layouts and Street Grades: The Project is not likely to result in a significant increase in traffic. There is no impact to street layouts or grades and no streets will be vacated.

Parking: The Project will not reduce existing parking inthe area. The Project, pursuant to the proposed amendedPUD, will provide one parking stall for each unit of hous-ing constructed.

3.Proposed Cost and Financing

The estimated total cost to implement this project is ap-proximately $2.1 million. The new private investmentexpected to implement this project is estimated at approx-imately $2.1 million, which will generate approximately$180,000 in Tax Increment Financing funding for publicimprovements and enhancements. The source of fundsfor public improvements and enhancements will be Tax

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ANTELOPE VALLEY REDEVELOPMENT PLAN LINCOLN, NE

Increment Financing (TIF) generat-ed from this private developmentwithin the Project Area. Fundingsources and uses will be negotiatedas a part of the redevelopmentagreement, which will be subject toapproval by the Mayor and CityCouncil.

Publicly-funded redevelopmentactivities may include site acquisi-tion, environmental studies andsurveying, site preparation andremediation, utility improvementsor relocation, energy efficiency im-provements, façade enhancements,street and streetscape improve-ments, and other public improve-ments related activities and costsas permitted under the Communi-ty Development Law.

The Urban Development Department believes that the private and public improvements proposed in this plan amendment would not occur �but for� the utilization of TIF. Project improvements would not be possible to the extent shown without TIF.

Public Infrastructure and Community Public Service Needs Impacts: It is not anticipated that the Project will have an adverse impact on existing public infrastructure, nor that the Project will have an adverse impact on City services, but instead will generate additional revenue providingsupport for those services.

Employment within the RedevelopmentArea: It is not anticipated that theProject will have an adverse impacton employers and employees of firmslocating or expanding within theboundaries of the Project Area. It isanticipated that the construction of amulti-family residential building maycreate additional full time temporaryemployment in the Project Area.

Employment in the City outside the Rede-velopment Project Area: The Project isnot expected to adversely affect em-ployment in the City outside the Ante-lope Valley Redevelopment Area.

Impacts on the student populations ofschool districts within the City: TheProject is not expected to have a mate-rial impact on student populations ofschool districts in the City of Lincoln.

The Project does consist of 12 residential dwelling unitsand some portion of these units may become occupied byfamilies with children, however, it is unlikely that all or amajority of the units would be occupied by families orthat the number of children would have a material impacton the population of any school within the City.

Other Impacts: The development of the Project Area willcreate additional market rate housing within walking dis-tance available to new households and those who work inthe downtown, Antelope Valley and N. 27th Street areas.

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MEETING RECORD EXCERPT NAME OF GROUP: URBAN DESIGN COMMITTEE DATE, TIME AND June 2, 2020, County-City Building, City Council Chambers, PLACE OF MEETING: 555 S. 10th Street, Lincoln, NE. MEMBERS IN Mark Canney, Emily Deeker, Tom Huston, Gill Peace and Michelle ATTENDANCE: Penn; Amber Brannigan and Tammy Eagle Bull absent. OTHERS IN Stacey Hageman and Paul Barnes of the Planning Dept.; Ernie ATTENDANCE: Castillo and Dallas McGee of Urban Development Dept.; Ben Kunz; Cristy

Joy and Nate Buss; Matt Olberding of Lincoln Journal Star; Hallie Salem of Urban Development Dept. appeared online via Zoom; Mark Matthews and Daniel Siedhoff appeared online via Zoom.

Chair Penn called the meeting to order and acknowledged the posting of the Open Meetings Act in the room. Penn then called for a motion approving the minutes of the regular meetings held March 3, 2020 and April 7, 2020. Motion for approval made by Huston, seconded by Peace and carried 6-0: Canney, Deeker, Huston, Peace and Penn voting ‘yes’; Brannigan and Eagle Bull absent. GORILLA FLATS REDEVELOPMENT: Members present: Canney, Deeker, Huston, Peace and Penn; Brannigan and Eagle Bull absent. Ben Kunz stated that the existing house has already been torn down. There is existing commercial with a vacant lot next to it. He showed the overall site plan. They will be paving the alley in the back and doing some new landscaping in the front. There will be the existing retail with 2 story apartments on either side. There will be a central amenity courtyard in the middle. They will install new landscaping on R Street. They will be removing the existing curb cuts and illegal parking areas, finish the curb and re-establishing parking. The front view shows existing refurbished commercial, and two-story apartments on either side, set back from the commercial by ten feet. Front porches extend into the front yard by eight feet. This is all allowed by the PUD (Planned Unit Development). The brick will be painted white to make it easier to match to the existing space for retail. The rear is proposed for more of a stucco fiber cement panel, mixed in with some wood accents. The recessed area is more of a board and batten style, fiber cement. Parking will be in the back. There will possibly be a standing seam metal roof on the front only, the rest they are looking at a composite shingle. There will be cast in place planters in front of the porch. The side view shows the rhythm of the design. The roof will be composite shingles and wood accents. He showed the final material board. A neighborhood meeting was held in association with Neighborworks and other neighbors. A letter of support was sent from the 18 townhomes on 25th and Q Street, Antelope Village Townhome Owners Association.

Meeting Minutes Page 2

Peace was curious about the setbacks. He would like to see what they are. It looks like the buildings on either side are set back further than the existing building. He questioned if the PUD dictates that you have to be set back another ten feet. Kunz responded that the setback for the existing retail is zero. The PUD shrinks it to a ten-foot setback for residential. The PUD already exists across the street. Peace thinks this is appropriate. He would support even a couple more feet. He likes using the porches to make the residential not feel like the business. Huston asked if there is any activity in the alley behind this. Kunz replied yes, it needs refreshed. The church also takes access off the alley. He is unsure about the other businesses. Huston inquired how many dwelling units are proposed. Kunz responded twelve. Peace asked if this is allowed by the PUD. Kunz replied yes. Canney asked if they will be rented or owned. Kunz stated they will be market rate rental, with two reserved for possible voucher programs. Penn noted there was a concern from the neighborhood association with regard to parking. She asked if there will be assigned parking. Kunz replied yes, there will be parking provided with assigned stalls. Peace likes the project. He thinks it is great, and great for this area. He usually has a couple of recommendations, but he thinks in this case, it looks really good as proposed. Canney agreed. He would ask the applicant to coordinate street tree requirements with Parks & Recreation. Kunz replied yes. Penn’s only concern would be where the brick is being painted. She implored the applicant to use a good quality product. Painted brick can sometimes have issues. Kunz stated they will be using a high quality, highly permeable paint. Penn thinks this looks very modern. She likes it. She hopes the applicant can obtain financing. Huston thinks this is a great project. We need more housing along R Street and this is a great addition. ACTION: Huston moved approval, seconded by Peace and carried 5-0: Canney, Deeker, Huston, Peace and Penn voting ‘yes’; Brannigan and Eagle Bull absent. Peace asked about the timing of this. Kunz replied that they hope to break ground this fall and complete next summer. Huston wished them good luck on renting the commercial space.

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