TO: Mayor and Members of City Council
THRU: Kelly Olivera - Assistant City Manager
Dr. Gerald Newton, AICP - Development Services Director
FROM: Will Deaton, AICP, CFM, CZO - Planning and Zoning Division Manager
Demetrios Moutos - Planner I
DATE: June 24, 2024
RE:
Title
TA24-09. Amendment to Uses and Standards in the UDO Requiring Special Use Permits
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Strategic Operating Plan FY 2022
Goals 2027
Goal II: Responsible City Government Supporting a Diverse and Viable Economy
• Objective 2.4: Sustain a Favorable Development Climate - These amendments directly support this objective by streamlining the development process, making it easier and faster for business and property owners to obtain permits. This can encourage new businesses and housing in the city and existing businesses and housing to expand.
Goal III: City Investment in Today and Tomorrow
• Objective 3.2: Manage the City’s Future Growth and Strategic Land Use - These amendments align with this objective by promoting a more adaptable and resilient approach to development. The revised standards will allow for a wider range of development options that can meet the city’s evolving needs.
Executive Summary:
This report details proposed amendments to the Unified Development Ordinance (UDO) Use Table and additional standards. The focus is on streamlining the development process, encouraging a wider variety of development types, and promoting a flexible and adaptable approach that prioritizes resilience. These amendments originated as a City Council request item from the third quarter of 2023 and were subsequently brought to a City Council Work Session in the first quarter of 2024. The initial request directed staff to research the number of items required to trigger a Special Use Permit and to compare the City’s results with those of our peer cities. These findings were presented to the City Council during the first quarter of 2024, here the consensus was to direct staff to move the item forward and submit it to the Planning Commission for review.
These amendments follow from a discussion held during the Planning Commission’s March meeting. A revised Use Table reflecting those discussions was attached to this report. The Planning Commission requested further revisions in May, which were incorporated. Additionally, feedback received between the April and May meetings from the Regional Land Use Advisory Commission (RLUAC) resulted in maintaining SUP requirements for Freestanding Telecommunications Towers. This change was reflected in the final Use Table, which the Planning Commission unanimously recommended for approval, along with the proposed adjustments to some additional standards concerning SUPs.
Background:
The City of Fayetteville is dedicated to responsible urban development. This means striking a balance between fostering economic growth and protecting the character of our neighborhoods. To achieve this, we’re proposing amendments to the Unified Development Ordinance (UDO) Use Table and some additional standards requiring Special Use Permits (SUPs).
Goals of the Proposed Changes:
• Simplify the Development Process: Streamlining SUP requirements will make it easier for businesses and property owners to navigate the development process, ultimately encouraging new investment in our city.
• Encourage Diverse Development: Offering a wider range of development options will help create more vibrant and interesting places for residents to live, work, and recreate.
• Maintain Neighborhood Integrity: A focus on flexible and adaptable development ensures our neighborhoods can evolve while retaining their unique character.
Special Use Permits (SUPs):
SUPs are an important tool for ensuring certain land uses are compatible with the surrounding community. However, the current SUP process can be complex and unpredictable. Our proposed amendments aim to:
• Streamline the SUP Process: Clearer guidelines and a more transparent review process will benefit both developers and the community.
• Enhance SUP Effectiveness: Making the process more efficient ensures proper oversight of land uses with potential community impacts.
• Minimize Negative Impacts: Responsible development will minimize any potential drawbacks for residents and neighborhoods.
These changes will promote a more efficient and effective development process while still prioritizing the well-being of our communities.
SUP Distribution and Proposed Changes:
• Current SUP Distribution:
o Agriculture: 5
o Residential: 30
o Public/Institutional: 131
o Commercial: 86
o Industrial: 44
o Total: 296
• Proposed Changes:
o Move to Permitted Use: 95 SUPs (32.09% reduction)
o Move to Not Permitted Use: 63 SUPs (21.28% reduction)
o Unchanged: 138 SUPs (46.62%)
Total Percent Reduction in SUPs: 53.38%
For detailed information, please refer to the attached Excel document.
Issues/Analysis:
Before any proposed amendment reaches the City Council for a vote, it undergoes a thorough review process by the City’s Planning Commission. This commission plays a vital role in ensuring responsible development in Fayetteville.
North Carolina General Statutes Section 160D-301 authorizes local governments to establish planning boards. These boards, including Fayetteville’s Planning Commission, can be tasked with various duties, including:
• Reviewing and recommending changes to development regulations, like the Unified Development Ordinance (UDO).
• Developing policies and procedures that promote efficient and coordinated urban planning.
This review process by the Planning Commission ensures that proposed amendments are carefully considered and aligned with the City’s overall development goals.
Recommended text amendments:
a) Revise Section 30-4.A.2. Use Table to streamline the development process:
• This revision includes reclassifying certain uses from requiring a special use permit to permitted uses or not permitted uses. (See attached “Revised Use Table”)
b) Revise Section 30-4.C.2.a.1.b. (Live/Work Dwelling Units)
• Current: In SF-6 (as a Special Use Permit) and MR-5 the residential portion of the building shall occupy over 50 percent of the gross floor area. Employees shall be limited to occupants of the residential portion of the building plus up to three persons not residing in the residential portion.
• Revised: In SF-6 (as a Special Use Permit) and MR-5 the residential portion of the building shall occupy over 50 percent of the gross floor area. Employees shall be limited to occupants of the residential portion of the building plus up to three persons not residing in the residential portion.
c) Remove Section 30-4.C.4.b.5. (Animal Care Uses)
• Current: Any incinerators included as an accessory use to an animal shelter shall be permitted only in accordance with a Special Use Permit.
d) Revise Section 30-4.C.4.i.2.b (Brewpubs)
• Current: Live entertainment shall not be permitted unless approved as a special event or through the special use permit process.
• Revised: Live entertainment shall not be permitted unless approved as a special event or through the special use permit process.
e) Remove Section 30-4.C.4.i.2.b.2 (Brewpubs)
• Current: The review and decision shall meet the criteria of Art. 30-2.C.7 Special Use Permit. Applications must include floor plans and details indicating ingress/egress, seating and dance area, maximum occupancy(ies), and plans to manage trash/litter, loitering and security. An acoustical study may be required. Conditions to mitigate impacts on surrounding properties and public spaces or resources may include but are not limited to specifying days or hours of operation, sound levels, sound-proofing, management of queuing or parking, and other activities associated with the entertainment.
f) Revise Section 30-4.C.4.i.8.a. (Grocery Store)
• Current: A grocery store over 2,500 square feet proposed within an NC Neighborhood Commercial District shall be subject to a Special Use Permit approval and the following standards:
1. The store shall not exceed 25,000 square feet.
2. The building shall be designed to appear as a series of small shops.
3. The building shall be located proximate to the public right-of-way, to frame the edge of the lot.
4. Parking shall be located to the interior side and rear of the building.
5. Site design shall include a pedestrian pathway system on the perimeter and within its site to support neighborhood access from surrounding areas and transit stops on its periphery.
• Revised: A grocery store over 2,500 square feet proposed within an NC Neighborhood Commercial District shall be subject to a Special Use Permit Approval and the following standards:
1. The store shall not exceed 25,000 15,000 square feet.
2. The building shall be designed to appear as a series of small shops.
3. The building shall be located proximate to the public right-of-way, to frame the edge of the lot.
4. Parking shall be located to the interior side and rear of the building.
5. Site design shall include a pedestrian pathway system on the perimeter and within its site to support neighborhood access from surrounding areas and transit stops on its periphery.
g) Revise Section 30-4.C.4.i.9 (Personal Services Establishments)
• Current: Personal service establishments in the MR-5, OI, and NC zoning districts shall comply with the following standards and in the MR-5 district may be further limited as a condition of approval of a special use permit:
• Revised: Personal service establishments in the MR-5, OI, and NC zoning districts shall comply with the following standards and in the MR-5 district may be further limited as a condition of approval of a special use permit:
h) Revise Section 30-4.C.5.c.2.f (Microbrewery, Micro distillery)
• Current: In the DT-1 and MU districts, live entertainment shall not be permitted except in accordance with the same standards and special use permit procedures provided for Brewpubs in Art. 30-4.C.4.i Use-Specific Standards - Retail Sales and Services.
• Revised: In the DT-1 and MU districts, live entertainment shall not be permitted except in accordance with the same standards and special use permit procedures provided for Brewpubs in Art. 30-4.C.4.i Use-Specific Standards - Retail Sales and Services.
Alignment with Comprehensive Plan
The Consistency Statement demonstrates how the proposed UDO Text Amendments support the City of Fayetteville’s Comprehensive Plan. This plan outlines the city’s vision for responsible urban development.
The amendments directly support several key goals and land use strategies:
• Growth and Infrastructure:
o Focus on “Infill” Development: By streamlining the development process in areas with existing infrastructure like roads, water lines, and sewer systems, the amendments encourage developers to utilize these areas first. This reduces the strain on the city’s budget as there’s no need to invest in expanding infrastructure for new development on the outskirts.
o Efficient Service Delivery: Since new development is situated near existing infrastructure, it’s easier and more cost-effective to connect them to utilities and public services like trash collection and fire protection. This ensures a higher quality of life for residents in these new developments.
• Economic Development:
o Reduced Time and Costs: Streamlining the permitting process saves businesses and property owners time and money. Shorter turnaround times and potentially fewer fees associated with SUPs can make Fayetteville a more attractive location for businesses to invest in and expand.
o Greater Flexibility and Innovations: By allowing a wider range of development types without requiring SUPs, the amendments could encourage more innovative and creative development projects. This fosters a more diverse business landscape and potentially attracts new industries or niche businesses to the City.
o Improved Marketability of Land: Land with a wider variety of permitted uses becomes more attractive to a broader range of potential buyers or developers. This can lead to increased property values and investment in the City.
• Revitalization and Redevelopment:
o Reinvigorating Underutilized Areas: As mentioned before, the amendments can incentivize investment in areas like strip malls and older neighborhoods by making the development process easier and less expensive. This can lead to the conversion of these areas into vibrant mixed-use spaces with a mix of residential, commercial, and office uses.
o Attracting New Residents and Businesses: Revitalized areas become more desirable places to live and work. This can attract new residents and businesses, bringing renewed economic activity and energy to these districts.
• Walkable Communities:
o Mixed-Use Development: The amendments can encourage the creation of well-designed commercial and mixed-use districts with a mix of shops, restaurants, offices, and residences all within walking distance. This reduces reliance on cars and creates a more pedestrian-friendly environment.
o Improved Connectivity: Well-designed mixed-use districts often incorporate sidewalks, bike lanes, and public transportation options. This improves connectivity within neighborhoods and allows residents to easily access their daily needs without needing a car.
• Quality Housing:
o Variety of Housing Options: The amendments could allow for a wider range of housing types, including apartments, townhouses, and single-family homes, catering to different needs and income levels. This fosters diverse and inclusive neighborhoods where people of all backgrounds can find suitable housing options.
o Affordable Housing Opportunities: By potentially streamlining the development process for smaller multi-unit housing projects, the amendments could indirectly encourage the creation of more affordable housing options. However, it’s important to note that additional measures might be needed to ensure affordability is maintained.
It’s important to remember that these are just potential benefits, and the actual impacts depend on numerous factors. However, the proposed amendments to the UDO offer a set of tools that can be used to achieve the goals of the Comprehensive Plan and promote a more sustainable and prosperous future for Fayetteville.
Budget Impact:
While implementing this proposal may result in a decrease in permit fee revenue due to fewer Special Use Permit applications for certain use types, the long-term economic benefits associated with a more streamlined development process, increased development activity, and revitalization of underutilized areas are expected to outweigh this initial loss.
Options:
1) City Council votes to approve all proposed text amendments. (Recommended);
2) City Council votes to approve some or portions of the proposed text amendments;
3) City Council votes to remand some or all proposed text amendments for further staff review and revisions, and approve the remaining amendments;
4) City Council votes to deny some or all proposed text amendments;
Recommended Action:
The Planning Commission and Professional Planning Staff recommend Option 1: Approve all proposed text amendments.
Attachments:
1. Amended UDO Use Table
2. Consistency Statement
3. City Council PowerPoint
4. SUP Totals Table
5. Ordinances