M E M O R A N D U M TO: Mayor and Council THROUGH: Steven Methvin, Deputy City Manager FROM: Chad Weaver, Community Development Director DATE: March 19, 2020 SUBJECT: Updates on the Development Bonus Program (DBP) PURPOSE: This memo provides a summary of the progress related to the Development Bonus Program (DBP). It also provides information related to some questions related to the Urban Code District (UCD), Urban Core Master Plan that were raised during the Council Work Study Session on 02/20/2020. RECOMMENDATION OR DIRECTION REQUESTED: Staff is seeking Council input and directions on moving the UCD, UCMP and DBP forward. CITY COUNCIL STRATEGIC PRIORITY The UCMP, UCD and DBP efforts further the goals of the Council Strategic Priorities. #3 Quality of Life, and #4 Sustainable Growth and Development, and the following performance measures.

• 3.26: Achieve a multimodal transportation system (20-minute city) where residents can walk, bicycle, or use

• public transit to meet all basic daily, non-work needs. • 4.10: PLACEHOLDER - Urban Core Vision • 4.18: Reduce community Greenhouse Gas (GHG) emissions by 80% of 2015 levels by 2050, and

achieve community carbon neutrality by 2060. • 4.19: Achieve the City Council goal of carbon neutrality in municipal operations by 2050 with a

strategy of 100% renewable energy by 2035. BACKGROUND INFORMATION: Introduction UCD, and UCMP At the Council Work Study Session on February 20, 2020, staff provided an updated to the Council on the UCD, UCMP and the related GPA. At that session, Council members asked for more details in the following areas:

• Public outreach conducted for the project • Examples of building construction types • Examples of residential density, development intensity, lot coverage • Impact of the UCMP on transportation and traffic • Relationship between UCMP and public facilities (e.g., police and fire)

Staff has prepared a brief and information package to the Council on the above topics and has provided those as attachments to the memo. Please see attachments.

Updates on the Development Bonus Program (DBP)

2

DBP The City of Tempe has engaged BAE Urban Economics (BAE) to assist in the development of a voluntary DBP that incentivizes developers to provide on-site, and off-site public amenities or in-lieu funds towards community benefits. The Development Bonus Program (DBP) for Urban Code District (UCD), and Urban Core Master Plan (UCMP) is a voluntary program available to the property owners and developers to achieve additional heights and densities in exchange for providing public benefits in or through their projects. There are four areas where developers can choose to provide public benefits:

• Affordable Housing, • Outdoor Gatherings Spaces, • Sustainability-related Investments, and • Historic Preservation.

Several municipalities in Arizona use voluntary DBPs to encourage the incorporation of community benefits such as sustainable development, affordable/workforce housing, and park space in developments. Under the DBP, cities provide developers the opportunity to earn additional project value in exchange for developer contributions that result in community benefits. If the value of the developer contributions is less than half of the additional value created by the bonus for the development, the developer has incentives to voluntarily participate in the program. Details of the DBP Program The attached memo from BAE Urban Economics provides the details of how the DBP program is structured, how developers earn bonus points and what heights are densities are available for the bonus points. Public Outreach and Next Steps for the DBP As advised by the Council at the October 17, 2019 hearing, staff conducted a city-wide staff consultation on the DBP, where some 50 individuals including directors, deputy directors, managers and other representatives participated. Staff has also been meeting with stakeholders including Historic Preservation advocates, development community, citizen groups and other interested individuals. Inputs into the program were sought from the public by providing hard copies of questionnaire, and also through the following UCMP website by uploading survey questions and seeking responses. Staff has organized discussion and presentations on the DBP at more than two dozen meetings since the Council Hearing on the UCD and UCMP on October 17, 2019. These activities have been integrated to the extensive public outreach in the past 30 months to discuss the UCD and UCMP and seek input. Since November 2017, staff has sent out more than 213,000 post cards, and 30,000 e-mails, and

Updates on the Development Bonus Program (DBP)

3

organized more than 50 public, stakeholder and focus groups meetings to discuss the UCD and UCMP efforts and gather inputs. Staff has received more than 1,500 public comments. Draft BDP documents were made public on November 25, 2019. An online survey on the DBP had opened on December 3, 2019 and closed on December 17, 2019. 41 responses to the survey were received (34 online and 7 at the meetings), which largely support the idea of the bonus program. Revised draft documents for the DBP were released to the public on January 21, 2020. Summary notes for some of the public meetings can be found at the following link under the “Public Involvement” heading. https://www.tempe.gov/government/community-development/urban-core-master-plan Staff continues to present and discuss the DBP to the relevant Boards and Commissions, and will remain open to obtain inputs from interested members of public and other stakeholders. On January 28, the DRC approved the DBP. Earlier, on January 14, 2020, the Transportation Commission approved the DBP in concept. The first Council hearing of the DBP is scheduled for April 27, 2020. The second Council hearing for the DBP is scheduled for May 7, 2020. The second hearing for the UCMP, UCD and related GPA application is also scheduled at the Council on the same date. FISCAL IMPACT or IMPACT TO CURRENT RESOURCES: There is no fiscal impact at this time. ATTACHMENTS:

1. Public and stakeholder outreach timeline 2. Smart Growth Principles addressed in UCD & UCMP 3. Transportation and Travel Demand Management 4. Illustrations for Construction Types 5. Illustrations for Density, Intensity, Population Density, Lot Coverage 6. Draft DBP Memo from BAE Urban Economics

ATTACHMENT 1: PUBLIC AND STAKEHOLDER OUTREACH TIMELINE

Urban Core Master Plan Public Outreach

November 1-3, 2017: Urban Core Master Plan kick-o� between City sta�, Consultants, and interested parties

February 28, 2018: Public Visioning workshop with stakeholders and consultants (120 attendees)

February 28 - March 14, 2018: UCMP Public comment period open

February 21, 2018: Sta� presentation to the Citizens for a Vibrant Apache Corridor (CVAC)

May 23, 2018: Sta� presentation to the Citizens for a Vibrant Apache Corridor (CVAC)

May 9, 2018: UCMP & Rio Salado Masterplan joint public meeting (114 attendees)

April 24, 2018: Sta� presentation at Development Review Commission Study Session

March 1, 2018: Sta� presentation at City Council Work Study Session

June 25, 2018: Sta� presentation to Tempe Neighborhoods Together (TNT)

February 26, 2018: Sta� presentation to Tempe Neighborhoods Together (TNT)

June 27-28, 2018: Focus group meetings with a�ordable housing partners, ASU, neighborhood leaders, and private sector partners

January 9, 2018: Sta� presentation to Arizona State University

2017

PHASE 1 PHASE 2 PHASE 3

2018

INITIAL PUBLIC CONSULTATION

&INPUT

COLLECTION

DRAFT RELEASE

&PUBLIC

FEEDBACK

PUBLIC HEARINGS

&ADOPTION

September 20-22, 2018: Public meetings with property owners, business owners, and other interested parties (133 attendees)

September 20 - October 4, 2018: Urban Core Master Plan public comment period open

September 21, 2018: Urban Core Master Plan City Council update at Council Retreat

September 24, 2018: Sta� presentation to DTA Board at Downtown Tempe Authority Board Retreat

September 25, 2018: Sta� presentation to Tempe Chamber of Commerce

September 20, 2018: Urban Core Master Plan Apache Business stakeholder meetingSeptember 20, 2018: Urban Core Master Plan Downtown Business stakeholder meeting

October 17, 2018: Sta� presentation to Arizona State University

October 23, 2018: Sta� presentation to Development Review Commission

November 14, 2018: Sta� presentation to Arts and Culture Commission

November 14, 2018: Sta� presentation to Tempe Historic Preservation Commission

January 9, 2019 Sta� presentation to Tempe Historic Preservation Commission

February 6, 2019: Sta� presentation to Sustainability Commission

February 12, 2019: Sta� Presentation to Arizona State University

February 13, 2019 Sta� presentation to Tempe Historic Preservation Commission

2019

April 4, 2019: Sta� presentation at City Council Work Study Session

March 1 - 31, 2019: A�ordable Housing Strategy public comment period

March 7, 2019: A�ordable Housing Strategy Public Meetings (49 attendees)

May 18-20, 2019: Public meetings with residents, property owners, business owners, and other interested parties

May 21, 2019: Stakeholders meetings private business owners and streetcar funding partners

May 28, 2019: Sta� presentation to Tempe Chamber of Commerce

June 5, 2019: Sta� presentation to the Joint Review Commission

June 11, 2019: Sta� presentation to the Tempe Transportation Commission

July 10, 2019: Sta� presentation to the Tempe Historic Preservation Commission

July 31, 2019: A�ordable Housing Strategy adopted by City Council

April 25 - June 1, 2019: Urban Core master Plan and Urban Code District public comment period open

April 25, 2019: Draft Urban Core Master Plan and Draft Urban Code District released to the public for review, feedback and comments

May 1, 2019: Sta� presentation at the Neighborhood Advisory Commission

May 14, 2019: Sta� presentation to Development Review Commission

May 15, 2019: Sta� presentation to Downtown Tempe Authority

May 20, 2019: Sta� presentation to Sustainability Commission

August 13, 2019: Transportation Commission update for UCMP, TOD & Major General Plan Amendment

August 13, 2019: Development Review Commission first public hearing for UCMP, TOD & Major General Plan Amendment

August 26, 2019: Development Review Commission second public hearing for UCMP, TOD & Major General Plan Amendment

September 6, 2019: Sta� presentation to Tempe Neighborhoods Together (TNT)

September 11, 2019: Sta� presentation to Tempe Historic Preservation Commission

September 17, 2019: Sta� presentation to Downtown Tempe Authority Board

October 2, 2019: Sta� presentation to Tempe Chamber of Commerce

August 27, 2019: Sta� presentation of Urban Core Master Plan and Urban Code District Drafs at Council Work Study Session

September 26, 2019: City Council first public hearing for UCMP, TOD & Major General Plan Amendment

October 17, 2019: City Council second public hearing for UCMP, TOD & Major General Plan Amendment

December 3, 2019: DRaft Development Bonus Program Public Meetings - Don Cassano Community Room & Escalante Community Center (32 attendees)

December 3, 2019: Draft Development Bonus Program meeting with stakeholders

January 6, 2020: UCMP, UCD & Development Bonus Program presentation and discussion with all City DepartmentsJanuary 8, 2020: Development Bonus Program presentation to Tempe Chamber of Commerce

January 8, 2020: Development Bonus Program discussion with Arizona Multihousing Association

January 8, 2020: Meeting with key stakeholders to discuss the Development Bonus Program, UCD & UCMP

December 4, 2019: UCMP, UCD & Development Bonus Program presentation to Tempe Women’s Club

December 4, 2019: Development Bonus Program presentation to the Neighborhood Advisory Commission

December 10, 2019: Development Bonus Program presentation at Development Review Commission Study Session

December 11, 2019: Meeting with sta� and key members of HPC & THPF to discuss Development Bonus Program & HP TDR

December 16, 2019: Development Bonus Program presentation to Sustainability Commission

2020

January 8, 2020: Memo sent to the HPC regarding the Development Bonus Program & TDR asking for feedback

January 8, 2020: Development Bonus Program presentation to the Joint Review Commission

January 10, 2020: Meeting with TNT President Ron Tapscott to discuss Development Bonus Program

January 14, 2020: Presentation to Tempe Transportation Commission on Development Bonus Program

January 14, 2020: Presentation to Downtown Tempe Authority on Development Bonus Program

January 23, 2020: UCMP, UCD & Development Bonus Program Open House at Don Cassano Community Room (26 attendees)

January 27, 2020: Meeting with Alissa Lyons of Valley Partnership to discuss UCD, UCMP & Development Bonus Program

January 28, 2020: Public hearing at the Development Review Commission for Development Bonus Program.

February 3, 2020: Meeting with Arizona Multihousing Association to discuss Development Bonus Program

February 12, 2020: Presentation to the Tempe Historic Preservation Commission on Development Bonus Program & TDR

February 13, 2020: City Council second Public hearing continued from October 17, 2019

February 20, 2020: Sta� presentation at City Council Work Study Session

March 19, 2020: Sta� presentation at City Council Work Study Session

*March 23, 2020: Urban Core Community Dialogue at Don Cassano Community Room

*Future outreach

ATTACHMENT 2: SMART GROWTH PRINCIPLES ADDRESSED IN UCD AND UCMP

1. Mix Land Uses

Addressed by: UCMP, UCD

• Smart growth supports mixed land uses as a critical component of achieving better places to live.

• By putting residential, commercial and recreational uses in close proximity to one another, alternatives to driving, such as walking or biking, become more viable. Mixed land uses also provide a more diverse population and commercial base which can help increase ridership for public transit.

• Mixed use can enhance the vitality and perceived security of an area by increasing the number and activity of people on the street. It attracts pedestrians and helps revitalize community life by making streets, public spaces and pedestrian-oriented retail become places where people meet.

• Mixed land uses can contribute economic benefits. For example, siting commercial areas close to residential areas can raise property values, helping increase local tax receipts. Meanwhile, businesses recognize the benefits associated with locations that attract more people, increasing economic activity.

• In today’s service economy, communities find that by mixing land uses, they make neighborhoods attractive to workers who are considering quality-of-life-criteria as well as salary to determine where they will settle.

• With a better balance of uses and more walkable streets, people begin to need their cars less. This trend can be acknowledged and accelerated by reducing parking requirements for new developments that meet mixed-use and pedestrian criteria.

2. Take Advantage of Compact Building Design

Addressed by: UCMP, UCD

• Smart growth provides a means for communities to incorporate more-compact building design as an alternative to conventional, land-consumptive development. Compact building design suggests that communities be laid out in a way that preserves more open space, and that individual buildings make more efficient use of land and resources.

• Compact building design is necessary to support wider transportation choices, and it provides cost savings for localities.

• Communities seeking to encourage transit use to reduce air pollution and congestion recognize that minimum levels of density are required to make public transit networks viable.

• Local governments find that, on a per-unit basis, it is cheaper to provide and maintain services like water, sewer, electricity, phone service and other utilities in more-compact neighborhoods than in dispersed communities.

• Research has shown that well-designed, compact New Urbanist communities that include a variety of house sizes and types command a higher market value on a per-square-foot basis than do those in adjacent conventional suburban developments.

SMART GROWTH PRINCIPLES

Upzoning: In response to the growing housing affordability crisis, policymakers in many cities and states are trying to figure out how to add more housing. The challenge is that buildings occupy most of the land in cities. Upzoning opens up the capacity of this land for more housing.

There’s also a climate case for upzoning: Building housing closer to transportation and jobs means people have to travel shorter distances to work and shop, lowering vehicle miles traveled and potentially allowing them to use public transportation and walk in lieu of cars.

3. Create a Range of Housing Opportunities and Choices

Addressed by: AHS, UCMP, UCD, DBP

• Providing quality housing for people of all income levels is an integral component in any smart growth strategy.

• Housing availability is a key factor in determining households’ access to transportation, commuting patterns, access to services and education, and consumption of energy and other natural resources.

• By using smart growth approaches to create a wider range of housing choices, communities can mitigate the environmental costs of auto-dependent development, use their infrastructure resources more efficiently, ensure a better jobs-housing balance, and generate a strong foundation of support for neighborhood transit stops, commercial centers and other services.

• Most importantly, providing a range of housing choices allows all households to find their niche in a smart growth community.

4. Create Walkable Neighborhoods

Addressed by: UCMP, UCD, DBP

• Walkable communities that are desirable places to live, work, learn, worship and play are a key component of smart growth. When streets become pleasant places, more people are likely to leave the car at home.

• Their desirability comes from two factors. First, goods (such as housing, offices, and retail) and services (such as transportation, schools, libraries) are located within an easy and safe walk. Second, walkable communities make pedestrian activity possible, thus expanding transportation options, and creating a streetscape for a range of users – pedestrians, bicyclists, transit riders, and drivers.

• To foster walkability, communities must mix land uses and build compactly, as well as ensure safe and inviting pedestrian corridors.

• The personal and societal benefits of pedestrian-friendly communities include lower transportation costs, greater social interaction, improved personal and environmental health, and expanded consumer choice.

5. Foster Distinctive, Attractive Communities with a Strong Sense of Place

Addressed by: UCMP, UCD, DBP

• Smart growth encourages communities to craft a vision and set standards for development that respect community values of architectural beauty and distinctiveness, as well as expand choices in housing and transportation.

• Unique, interesting places that reflect the diverse values, culture and heritage of the people who live there have the greatest staying power. Smart growth seeks to create interesting, unique communities that reflect the values and cultures of the people who reside there and foster physical environments that support a more cohesive community fabric.

• It encourages the construction and preservation of buildings that are assets to a community over time, not only because of the services provided within, but because of the unique contribution they make to the look and feel of a city.

• Projects and neighborhoods that incorporate natural features, historic structures, public art and placemaking can help distinguish a place from its neighbors to attract new residents and visitors – and support a vibrant community for the people who already live there.

“No great city has ever protected parking as a fundamental right.” (urbanist Neal Peirce)

It is the fate of every great urban environment to have a parking “problem.” The more walkable a place becomes, the more people want to drive to it from less lively places.

6. Preserve Open Space, Farmland, Natural Beauty, and Critical Environmental Areas.

Addressed by: UCMP, UCD

• Open space preservation supports smart growth goals by bolstering local economies, preserving critical environmental areas, improving community quality of life and guiding new growth into existing communities.

• Preservation of open space benefits the environment by combating air pollution, attenuating noise, controlling wind, providing erosion control, and moderating temperatures. Open space also protects surface- and ground-water resources by filtering trash, debris, and chemical pollutants before they enter a water system.

• Higher building heights allow more ground floor open space such as plazas and aesthetically pleasant street façades.

7. Strengthen and Direct Development Towards Existing Communities.

Addressed by: UCMP, UCD

• Smart growth directs development towards existing communities already served by infrastructure, seeking to utilize the resources that existing neighborhoods offer, and conserve open space and irreplaceable natural resources on the urban fringe.

• By encouraging development in existing communities, cities benefit from a stronger tax base, closer proximity of a range of jobs and services, as well as increased efficiency of already-developed land and infrastructure.

• Developing within existing communities makes the most of the investments we’ve already made in roads, water/sewer lines and other infrastructure, while strengthening local tax bases and protecting open space.

• The key to neighborhood safety is natural surveillance, a term that describes how crime decreases when someone might be watching. Doors, windows and other architectural signs of human occupancy serve as “eyes on the street.”

8. Provide a Variety of Transportation Choices.

Addressed by: UCMP, UCD

• People can’t get out of their cars unless we provide them with another way to get where they’re going. Communities need safe and reliable public transportation, sidewalks and bike paths.

• High-quality public transportation, safe and convenient biking and walking infrastructure, and well-maintained roads help communities attract talent, compete on a global scale and improve quality of life.

• For busy urban centers, accommodating the automobile unconditionally is a no-win game. The goal is to create a transit and pedestrian experience that makes not driving a pleasure.

• Transportation is the second highest category of household spending, just behind shelter. Convenient transportation choices enable families to rely less on driving, leaving more money for other things, like buying a home or saving for college.

• In response to increasing traffic congestion, communities are beginning to implement new approaches to transportation planning, such as: better coordinating land use and transportation; increasing the availability of high-quality transit service; creating redundancy, resiliency and connectivity within road networks; and ensuring connectivity between pedestrian, bike, transit and road facilities. In short, they are coupling a multi-modal approach to transportation with supportive development patterns, to create a variety of transportation options.

Induced traffic: new road capacity is absorbed by drivers who previously avoided getting on the congested road. For every 10 percent increase in metropolitan roadway capacity, vehicle-miles traveled increased 9 percent within 4 years.

9. Make Development Decisions Predictable, Fair and Cost Effective.

Addressed by: UCMP, UCD, DBP

• For a community to be successful in implementing smart growth, the concept must be embraced by the private sector. Only private capital markets can supply the large amounts of money needed to meet the growing demand for smart growth developments.

• Builders wishing to implement smart growth should face no more obstacles than those contributing to sprawl. In fact, communities may choose to provide incentives for smarter development.

• For smart growth to flourish, state and local governments need to make development decisions about smart growth more timely, cost-effective and predictable for developers.

• By creating a supportive environment for development of innovative, pedestrian-oriented, mixed-use projects, government can provide smart growth leadership for the private sector.

10. Encourage Citizen and Stakeholder Collaboration in Development Decisions.

Addressed by: UCMP public planning and development process

• Growth can create great places to live, work and play—if it responds to a community’s own sense of how and where it wants to grow. Communities have different needs and will emphasize some smart growth principles over others.

• Plans developed with strong citizen involvement have staying power. Involving the community early and often in the planning process vastly improves public support and often leads to innovative strategies that fit the unique needs of the community.

Sources: The Smart Growth Manual (Andres Duany, and Jeff Speck with Mike Lyon), 2010. This is Smart Growth (International City/County Management Association and U.S. Environmental Protection Agency), 2006. https://smartgrowthamerica.org/our-vision/what-is-smart-growth/ https://smartgrowth.org/smart-growth-principles/ https://www.curbed.com/2020/1/30/21115351/upzoning-definition-affordable-housing-gentrification

The key to neighborhood safety is natural surveillance, a term that describes how crime decreases when someone might be watching. Doors, windows and other architectural signs of human occupancy serve as “eyes on the street.”

ATTACHMENT 3: TRANSPORTATION AND TDM

Traffic-related Questions for the UCMP The City Council on February 20, 2020, requested staff provide clarifications on traffic related strategies in the Urban Core Master Plan. This memo is organized based upon the themes of questions and comments received from City Council.

Traffic Analysis of the UCMP The City recently completed a traffic analysis, commissioned jointly by the City and ASU, from SR 202 to Apache Boulevard and from Priest Drive to Price Road. In 2015, a Small Area Transportation Study (SATS) was conducted to establish a comprehensive assessment of the potential traffic impact associated with ASU NOVUS.

The SATS study area is larger than the UCMP. Staff and the traffic consultant began with 2040 population and employment market-based projections from MAG and adjusted those projections to account for the NOVUS proposal. The traffic consultant utilized the rest of the known development entitlements outside NOVUS area to populate the study area. The existing transportation network was augmented by NOVUS street network to build the representative network.

The SATS proposed street infrastructure improvements, like recommending an additional freeway on-ramp at McClintock and Loop 202, grade separated pedestrian and bike crossings, as well as intersection improvements on Rural Road. The SATS recommendations that included walking, biking or transit trips have been incorporated in the UCMP Connectivity Chapter. Additionally, the SATS results indicate the City will need to increase the rate of internal capture and alternative mode trips, both of which are ways of measuring Transportation Demand Management (TDM). Each of these concepts are described herein.

Alternative Mode Trips and Internal Capture Increasing alternative mode trips requires action by the City, developers, and employers to increase the number of trips occurring by walking, biking and transit, rather than by driving a single occupancy vehicle. Internal capture is accomplished through mixed-use development which means that people can make trips within the site rather than on the street network. The goal of increasing the internal capture rate is consistent with the mixed-use development goals of the UCMP and the City’s 20 Minute City goal of connecting residents to daily non-work needs by walking, biking and transit.

The City has been consistently working towards this goal by investing in pedestrian, bicycle and transit infrastructure and services. The UCMP Connectivity Chapter includes a table and map of all the alternative mode connection strategies within the urban core, including those identified in the SATS process. Some of these strategies will be paid through Capital Improvement Program (CIP) projects and others will be implemented through development activities.

Developers can help increase the amount of alternative mode trips by reducing the amount of parking in their development and by incorporating site features that help make trips by alternative modes. The City now requires developers to identify TDM strategies through submittal of a Trip Reduction Plan (TRP) along with their Transportation Impact Study, which is required with any development that generates 75 or more peak hour trips.

Employers with 50 or more employees on site encourage alternative mode trips through their individual TRPs, which are required by Maricopa County. City staff continues discussions with large employers in the

urban core to understand what more can be done to ease the traffic impact associated with commuting. By collaborating with employers, Tempe is not only supporting these businesses, but the City is also capturing an opportunity to influence daily commute decisions for trips beginning and ending outside Tempe’s city limits. To this end, the City will soon begin a planning process that includes the opportunity to create a Transportation Management Association (TMA). As described in a previous memo, the TMA will provide continuous support to employers (and other stakeholders) to help them achieve their individual transportation goals, which also supports Tempe’s transportation goals.

Summary While the UCMP does not specifically have a build-out scenario traffic analysis, the 2015 SATS provides a comparable analysis that established short and long-term goals and strategies for the City, as well as prioritized capital investments related to transportation. The City, through CIP and development review and approval, must continue to make short-term incremental decisions that lead towards the long-term goal of increasing internal capture rates and increasing alternative mode trips.

In accordance with typical city planning process, the Transportation Master Plan is updated following the adoption of an updated General Plan. The current Transportation Master Plan was adopted in 2015. Council could decide to update the Transportation Master Plan following this Major General Plan Amendment. Should Council elect for this, the City could also conduct an update of the SATS analysis to incorporate the maximum buildout scenario of the UCMP and to evaluate the local neighborhood network impact. While this analysis would be costly, it would provide an updated scenario to inform long-range planning and short-range decision making. Staff anticipate the goals of increasing internal capture rates and increasing alternative mode trips will remain as important goals regardless of whether an updated traffic analysis were conducted.

Traffic Impact from Heights and Densities The 2015 Transportation Master Plan drew an important conclusion about the region’s impact on Tempe’s transportation network. Because Tempe is centrally located in a fast-growing region and because the urban core is surrounded by highways, any infrastructure additions meant to increase capacity and ease traffic congestion are quickly met with additional traffic. This means that not only the goal of easing traffic congestion is short-lived, but there is also the potential to create additional traffic on adjacent streets. Furthermore, Tempe cannot control growth that occurs in the surrounding cities. These regional factors mean that traffic congestion during AM and PM commutes will continue to occur in Tempe’s urban core no matter the amount of capacity improvements.

To this point, if the City built out today to the permitted density and height, the street network would also be at over capacity. However, the UCMP provides for better-quality development and promotes the 20 Minute City goal by targeting residential growth and daily needs along corridors that are prioritized for walking, biking, and transit trips. Concentrating growth along corridors that provide for safe and convenient alternative mode trips is an important strategy to get more people choosing alternative modes, thereby freeing up transportation system capacity.

Differences and Similarities Between Trip Reduction Plans and Transportation Demand Management At its most basic level, Transportation Demand Management (TDM) is a program of information, encouragement and incentives provided by local or regional organizations to help people know about and

use all their transportation options to optimize all modes in the transportation system – and to counterbalance the incentives to drive that are prevalent in subsidies of parking and roads. The goal of TDM is to increase walking, biking and transit trips, to decrease single-occupancy vehicle (SOV) trips, and to decrease the number of vehicle trips occurring during peak traffic, the AM and PM commute. By accomplishing these goals, the City has the potential to gain additional capacity in the transportation system.

Trip Reduction Plans (TRPs) are implemented by individual developers and by employers. Developers implement TRPs by incorporating TDM strategies or policies into the development. By providing TDM on site, future tenants of the development will have access to features that encourage trips by alternative modes. Employers implement TRPs through their requirements with Maricopa County, which typically include several TDM incentives to encourage more alternative mode commuting or alternative scheduling to avoid traffic during rush hour.

Neighborhood Traffic Residents have expressed concern about increased cut-through traffic occurring in neighborhoods.

Neighborhood traffic calming costs have historically been paid one of three ways: 1) the Neighborhood Traffic Calming CIP, 2) Neighborhood Grants, and 3) Development Agreements, which has been used in one instance. Since the recession (and associated reduction in budget), the Neighborhood Traffic Calming CIP has allowed for only the implementation of speed humps and staff continue to manage the program with equitable distribution of traffic calming requests across all neighborhoods.

While funding is available for traffic calming, the cost of construction has increased significantly as has the requests for more “aggressive” strategies. These more aggressive strategies are typically more effective at reducing the volume of cut-through traffic as well as slowing down traffic. However, the more aggressive strategies typically cost more and require additional resident consent through the city-approval processes as they result in a change to the existing access and circulation of the neighborhood.

The city-approval processes for neighborhood traffic calming are addressed in the Streetscape and Transportation Enhancement Program (STEP) Manual, which was approved by City Council in 2008. The STEP Manual provides guidance for city staff to petition residents of the neighborhood and receive signatures consenting to the change. The more aggressive the strategy, the larger the area of impact and the higher the requirements for neighborhood consensus. As noted above, strategies beyond installation of speed humps have not been funded through the program due to the economic downturn and the portions of the manual that address larger streetscape projects have not been tested through actual neighborhood requests. Achieving neighborhood consensus can be difficult and some neighborhood leaders have expressed that the petition requirements make it too challenging for them to address their neighborhood safety concerns.

Should Council choose to revisit the neighborhood traffic calming program (beyond the current program which funds primarily speed humps), additional funding and revisions to the STEP Manual should be considered, and additional staff would be needed in order to fully support the neighborhood traffic calming program.

ATTACHMENT 4: ILLUSTRATIONS FOR CONSTRUCTION TYPES

National Fire Protection Association (NFPA) Construction Types

Construction Type

Fire Resistivity - Typical Materials

Visual Examples - Construction

Visual Examples in Tempe

I Fire-resistive: • Concrete

Watermark

II Non-Combustible: • Steel • Mixed masonry • Wood

Scales Technology Academy III Ordinary:

• Mixed masonry • Wood

Encore on Farmer

IV Heavy timber: • Timber column

and beams

Metro 101 V Wood Frame:

• Stick frame 2” x 4”

Broadstone Rio Salado

ATTACHMENT 5: ILLUSTRATIONS FOR DENSITY, INTENSITY AND LOT COVERAGE

Residential Density, Intensity, Population Density, Lot Coverage Definitions, Data Uses and Images

Residential Density Development Intensity (Floor Area Ratio)

Population Density Lot Coverage

Defin

ition

Number of dwelling units per acre of the site

Total built up floor area of all floors divided by the site area

Total number of people (residents, employees, visitors) per acre

Percentage of the net site area covered by the building footprint on the site

Use

s

• Transit ridership • Open space needs • Infrastructure optimization

• Infrastructure development • Traffic generation • Parking needs

• Overall land utilization • Open space • Transportation

• Open space • Privacy • Lowering density,

yards, set-backs

Imag

es

ATTACHMENT 6: DBP MEMO FROM BAE URBAN ECONOMICS

Draft Development Bonus Program Page 1 of 14

DRAFT DEVELOPMENT BONUS PROGRAM FOR URBAN CODE DISTRICT AND URBAN CORE MASTER PLAN

Memorandum

To: City Council through Community Development Department, City of Tempe From: BAE Urban Economics Date: March 19, 2020 Re: Draft Development Bonus Program Update This Memorandum (memo) provides an overview of the City of Tempe Voluntary Development Bonus Program (DBP) for the Urban Code District (UCD) and Urban Core Master Plan (UCMP). Several municipalities in Arizona use voluntary DBPs to encourage the incorporation of community benefits such as sustainable development, affordable/workforce housing, and park space in developments. Under a DBP, cities provide developers the opportunity to earn additional project value in exchange for developer contributions that result in community benefits. If the value of the developer contributions is less than the additional value created by the bonus for the development, the developer is incentivized to voluntarily participate in the program. The City of Tempe has engaged BAE Urban Economics (BAE) to evaluate and assist in the development of a voluntary DBP that incentivizes developers to provide onsite and off-site public amenities or in-lieu funds towards community benefits. This memo provides a draft of the structure of the DBP, requirements for participating in the program, the participation process, and the substance of an associated Transfer of Development Rights (TDR) program applicable only for Historic Preservation bonus. This program is being prepared concurrently with the adoption process of the UCD and UCMP efforts to encourage developer participation when UCD and UCMP are implemented.

1. Structure of the DBP Program Tempe’s DBP is a voluntary program available within the UCD that would allow developers to achieve additional building heights and/or densities in exchange for a defined set of community benefits (Bonus Elements), including affordable and workforce housing, sustainability elements, historic preservation assurance (when applicable), and/or connected outdoor public gathering space. The program requires developers to provide at least one category of community benefits or connectivity onsite. Developers can then use an Affordable Housing In-Lieu Fee or Sustainability elements to make up any gap required to achieve the designated points required to obtain a development bonus.

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The DBP also provides reference for calculating and negotiating recommended building heights and densities when developers apply for UCMP heights through a Planned Area Development (PAD) or Development Agreement process. Program Approach Success of the DBP will depend on voluntary developer participation. To incentivize developers to participate, the program is structured to seek bonus element contributions equal only to approximately half the additional project value (profits) that a developer would earn from building to higher maximum heights and/or densities (Incremental Residual Project Value)0F

1. Developers are often willing to share parts of additional project value with investments in the development towards community benefits. However, they need incentives in the form of additional profits to undertake any processes or requirements outside the normal courses of business. Developers are unlikely to make ongoing commitments to affordable housing, historic preservation — or to a lesser extent, public gathering space and sustainability improvements — without realizing greater financial gains than developing under the base zoning entitlements. In its experience negotiating developer community benefit agreements and creating special assessment districts across the United States, BAE notes that developers are most likely to participate in programs where the developers can retain at least 50 percent of the Incremental Residual Project Value after they provide public benefits. Thus, as a general guideline, the DBP uses the following calculation to determine the value of Bonus Elements that a developer would be willing to contribute in exchange for additional development rights:

Maximum cost of developer contribution = 0.5 x (Bonus Residual Project Value minus Base Residual Project Value)

Although the public benefits sought are 50 percent of the developer’s Incremental Residual Project Value, the total public benefits outweigh the financial costs to provide the bonus elements. For example, sustainability elements in a development contribute to a healthier urban environment and better air quality; outdoor gathering spaces increase mobility and vibrancy and contribute to placemaking efforts; historic preservation provides for the ongoing conservation of local neighborhood and/or cultural character; and affordable housing provides residential opportunities to lower income residents, increases educational outcomes, and enhances economic development potential for the City. The City will enjoy a total high value because of the tangible and intangible benefits to the community and the city as a whole. All

1 Incremental Residual Project Value equals the excess value (profits) of a project under bonus development less the excess value of the project (profits) under a base development scenario.

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the public benefits included in the DBP are among the City’s priorities as envisioned in the Tempe City Council Strategic Priorities. DBP Bonus Bonus development is achieved through the accumulation of Bonus Element Points (points). A developer may obtain a Bonus through the accumulation of 100 points. Table 1 shows base and bonus heights and densities in each UC zone. Base and bonus development heights and densities are structured to minimize changes in construction types, which can have an adverse impact on profitability for developers. Developers wishing to apply for the UCMP heights shown in Table 1 would first be required to comply with Bonus eligibility requirements as a prerequisite. Additional heights are contingent upon providing commensurate amount of public benefits provided by the developer and meeting all applicable UCMP design guidelines. The amount of public benefits in proportion to the UCMP heights and densities sought will be negotiated between the City and developer on a case by case basis. Table 1: DBP Base and Bonus Development

Urban Code District UCD Base UCD Bonus (a)

UC-1 125 ft

65+ du/acre 160 ft

65+ du/acre

UC-2 90 ft

65+ du/acre 130 ft

65+ du/acre

UC-3 90 ft

Up to 65 du/acre 130 ft

65+ du/acre

UC-4 70 ft

Up to 45 du/acre 90 ft

Up to 65 du/acre Note: (a) 100 points required to achieve UCD bonus in UCs 1 through 4; no bonus available in UCs 5 and 6 zones.

Entitlement Review Benefits The DBP provides more than just additional development potential. Developments in UC Zones 3-4 can participate in the DBP through an Administrative Review. All other participation requires Council Review. The administrative review is for the calculations of heights and densities available according to the bonus points earned. All projects are required to go through a normal Development Plan Review (DPR) process to get approval for the building design and site plan. Even for the developments requiring Council Review, staff will calculate the bonus heights and densities, and only the design and site plan will require public reviews. This process is designed to provide certainty and predictability of development rights to the development community and, in most cases, reduce the need for Council project approvals and associated

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staff time.

2. Bonus Elements Menu and Points The Bonus Elements menu provides transparency, certainty and flexibility to the development community when they participate in the DBP. A developer can participate in the DBP by including one or more onsite Bonus Elements that can be combined, if necessary, with an In-Lieu Fee payment. Points are assigned to each Bonus Element, and the developer can choose the most suitable combination to earn Bonus Points for the development. Developers must achieve 100 Bonus Points to participate in the Development Bonus Program. Table 2 shows the points earned per different levels of public benefits.

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Table 2: Bonus Elements and Points by Zone Bonus Elements Bonus Elements and Points by Zone

UC-1 UC-2 UC-3 UC-4 UC-5 and UC-6

Public Benefit

Pts Public Benefit

Pts Public Benefit

Pts Public Benefit

Pts Public Benefit

Pts

Affordable Housing, On-Site

Up to 50% AMI

51% to 80% AMI

81% to 100% AMI

101% to 120% AMI

3%

5%

10%

n/a (a)

100

100

100

3%

5%

10%

n/a

100

100

100

3%

5%

10%

n/a

100

100

100

3%

5%

10%

n/a

100

100

100

n/a

n/a

n/a

n/a

Housing In-Lieu Fee Fee per Point (b) Minimum points

Maximum points

$6,500

1

1

70

$6,500

1

1

70

$15,000

1

1 70

15,000

1

1 70

$15,000

1

1 10

Public Outdoor Gathering Space Minimum points (c) based on percentage of site set-aside Maximum points (c)

5%

10%

15%

20%

15

30

45

60

5%

10%

15%

20%

15

30

45

60

5%

10%

15%

20%

10

20

30

40

5%

10%

15%

20%

10

20

30

40

5%

10%

15%

20%

5

10

10

10

Sustainability Elements Points per $250,000 in Qualified Expenditures

Minimum points (d)

Maximum points

30

90

30

90

15

75

15

75

10

10

Notes: (a) “n/a” indicates that Bonus Points are not available in this category. (b) In-Lieu Fee per point based on prototypical parcel size within each UCD. For parcel sizes larger than 0.7 acres in UCs 1 and 2; and larger than 3.0 acres in UCs 3 and 4, fee per point may be scaled as approved by the Community Development Director or designee. (c) Public Outdoor Gathering Space already required as part of UCD can be counted towards Bonus Points when lot coverage exceeds 90 percent of the net site area.

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(d) For parcel sizes larger or smaller than 0.7 acres in UCs 1 and 2; and 3.0 acres in UCs 3 and 4, Bonus Points for Sustainability Elements may be scaled as approved by the Community Development Director or designee.

To calculate the Bonus Points available within each category and UC, a series of development prototypes were created within each UCD subzone that are reflective of local projects built recently or currently under construction.1F

2

On-Site Affordable Housing Developers can automatically earn 100 Bonus Points by providing covenanted affordable housing units within their residential development projects. To comply with this option, a developer would choose one of the percentages of housing units corresponding affordability levels shown in Table 2. For example, a residential developer in UC-3 would provide either:

• 3 percent of Total Project Units to households earning 50 percent of Area Median Income (AMI)2F

3, or • 5 percent of Total Project Units to households earning 80 percent of AMI, or • 10 percent of Total Project Units to households earning 100 percent of AMI

Onsite Affordable Units must be incorporated in a similar size, mix, and configuration as the overall project. In other words, the units provided as affordable units will have the same average number of bedrooms as the average number of bedrooms in the development. Although the City’s Housing Services Division will provide ongoing monitoring for affordable housing units, the inclusion of rent or deed-restricted units can be generally outside of a developer’s normal course of operations. The City recognizes that providing affordable and workforce housing on site should provide 100 Bonus Points to the developer without the need for the inclusion of other Bonus Elements. Bonus Points have been calibrated to be roughly equivalent to the developer’s foregone revenue amounts in each affordability category, with requirements for a larger percentage of units to be provided at higher affordability levels to obtain the same amount of Bonus Points. The Onsite Affordable Housing option is not available to commercial uses or office development, as these uses are not appropriate for affordable units. Commercial-only projects

2 City and local developers indicated that new developments would likely reflect compact development on small parcels. The parcels modeled were 0.7 acres in UCs 1 and 2; and 3.0 acres in UCs 3 and 4. To the extent that the current point schedule promotes the assembly of development parcels, the DBP allows the City to scale in-lieu fees upward or downward as approved by the Community Development Director or designee. 3 The AMI for a family of four in the Phoenix-Mesa-Scottsdale MSA in 2019 was $72,900 (https://www.huduser.gov/portal/datasets/il/il2019/2019summary.odn).

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can provide other onsite benefits to earn points, including making up gaps in points through Affordable Housing In-Lieu Fee payments. On-Site Public Outdoor Gathering Space Under the DBP, all district parcels are eligible to earn Bonus Points for Public Outdoor Gathering space.

• A minimum of five percent of net lot coverage dedicated to Public Outdoor Gathering Space is required to earn Bonus Points in all districts.

• A maximum of 20 percent of net lot coverage dedicated to Public Outdoor Gathering

Space can be applied to Bonus Points in all districts.

• Minimum lot coverage requirements to opt in to the UCD are treated separately and can count towards Bonus Point accumulation only in cases where the lot coverage exceeds 90 percent of net site area.

Points can be earned in multiples of the base rate. For example, a project in UC-3 can earn 20 points by dedicating 10 percent of its net site area for Public Outdoor Gathering Space, or 30 points by dedicating 15 percent of its site area as shown in Table 2. A project would not, however, earn more than 30 Bonus Points by dedicating 18 percent of its net site area to Public Outdoor Gathering Space. Eligible Public Outdoor Gathering Spaces are based on definitions and development standards listed in the UCD. Selected standards for outdoor gathering spaces are provided below:

1. Incorporates a minimum of five of the following pedestrian scale features: • Lighted bollards • Movable tables and chairs • Benches or swings • Seat walls and/or raised landscape planters • Shade trees • Pots or hanging baskets filled with seasonal plant material • Informational kiosks • Stage, amphitheater, or other performance space • Sculptures or other public art features • Water features • On site parking for bikes and micro-mobility equipment

2. Integrates landscaping and/or structures to provide shading for the outdoor gathering spaces.

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3. Provides direct access to sidewalks and pedestrian walkways. On-Site Sustainability Elements Under the DBP, a developer may earn Bonus Points for every $250,000 in spending on qualified Sustainability Expenditures described below.

• Bonus Points for Sustainability Elements can be obtained in multiples of the minimum points awarded per UC for each $250,000 in qualified expenditures, but cannot be gradually scaled.

• Bonus Points for Sustainability Elements are capped at 90 points in UCs 1 and 2, and

capped at 75 points in UCs 3 and 4.

A project may not earn full 100 Bonus Points in qualified Sustainability Expenditures alone. For example, a project in UC 3 could earn up to 75 points by providing $1.25 million in Sustainability Elements, but would need to make up the additional 25 points by dedicating 10 percent net lot coverage to Public Outdoor Gathering Space (20 points); and pay in In-Lieu Fee of $75,000 (5 points). The following Sustainability Elements qualify for Bonus Points:

A. Resilience to Extreme Heat

1. Provide shade coverage on at least 50 percent of all above-grade walls to a height of 20 feet. Shade coverage shall be calculated at 9 a.m. for the east walls, and 3 p.m. for the west walls on summer solstice. Any vegetation providing shading shall consist of biodiverse plantings of native plans and adapted plants.

2. At least 50 percent of the site hardscape that is not covered by solar energy

systems shall be shaded by biodiverse planting of native and adapted plants. The shade coverage on hardscape shall be the arithmetic mean of the shade coverage at 10 a.m., noon, and 3 p.m. on summer solstice.

3. A minimum of 75 percent of the roof shall be covered with any of the following products. a. Roof coverage materials with a three-year aged SRI value of 35. b. Vegetative terrace or roofing system that consists of plants that are suitable for

the microclimate, and which provide foliage to at least 50 percent of the designated area for vegetation.

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Note: Area covered by photovoltaic solar installation shall be excluded for these calculations.

4. Site development incorporates minimum 3 ft. deep window overhang(s) or similar

architectural features to shade 75 percent of all west facing windows and 50 percent of all proposed glazed windows. The shade coverage shall be the arithmetic mean of the shade coverage at 10 a.m., noon, and 3 p.m. on summer solstice.

5. Provide on at least 50 percent of the site hardscaped area, permeable paving, structured soil/grass, open grid paving or similar material that allows for water to permeate the surface to promote natural drainage and filtration.

6. Site development incorporates functional rainwater harvesting that irrigates at

least 75 percent of the total landscape area.

B. Greenhouse Gas Emissions Reduction

1. Ensure 80 percent of all parking spaces are EV charger ready (wiring) and with 10 percent of spaces with EV chargers installed.

2. Site development at grade and roof incorporates solar panels that cover 20 percent of the net site area.

3. Allocate spare conduit, structural and space capacity and pathways for future installation of on-site renewable energy systems including solar panels and battery deployment.

4. Provide any other sustainability feature (s) from the International Green Construction Code (IgCC) 2018 or updated IgCC codes as adopted by City of Tempe to enhance the sustainability of the development, to be reviewed and accepted by the Community Development Director or designee.

5. Achieve energy conservation levels that are at least 50 percent of the baseline

energy consumption in the project, and get it certified by a third party.

6. Provide for on-site microgrid (local energy grid with control capability powered by distributed generators, batteries or renewable resources) investment for critical uses (30 percent of expected summer electrical load).

Affordable Housing In-Lieu Fee Payment To achieve additional bonus points even after providing onsite community benefits, a developer may pay an affordable housing in-lieu fee to make up the difference to reach the 100 points needed for a bonus. Since the City wants to prioritize on-site benefits, developers

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can only earn a maximum of 70 points from in-lieu fees towards achieving the Bonus. In-lieu fee amounts per point vary by UC zone. The amounts are paid on a per bonus point basis. For example, if a developer needs 30 points to achieve the required total of 100 bonus points, that developer would pay 30 times the amount of the in-lieu fee per point for its associated UC zone. Table 2 shows the in-lieu fee amount for each bonus point by UC zone. Historic Preservation The DBP can also be accessed through historic preservation on properties that are Historic Eligible, Historic Registered, and National Registered properties. Because many of the parcels containing historic preservation properties do not have enough site space to accommodate additional development, the DBP provides developers an opportunity to earn development bonus points through a Transfer of Development Rights (TDR) program. To receive the TDR, the owner of historic property would need to provide the City with a perpetual historic and façade conservation easement, sign a Development Agreement with the City, and commit to historic preservation treatments acceptable to the Historic Preservation Commission (HPC). Like the on-site affordable housing, historic preservation alone automatically can result in 100 points towards achieving the bonus and does not require the provision of additional on- or off-site community benefits. The next section provides a description of Transfer of Development Rights process for historic preservation. Transfer of Development Rights (TDR) Program Tempe enjoys a rich multi-cultural heritage evident through its historic buildings, neighborhoods and structures. Less visible, but equally important, are the archaeological resources of Tempe's past. Protection and enhancement of Tempe's heritage is critical to preserving the unique identity of our community. The blending of the past with the present enriches our city and all of its citizens. However, the tools available for historic preservation are limited and the development of a regulatory structure that favors preservation is critical to protecting Tempe’s past, both historic and prehistoric. The goal of the Transferable Development Rights (TDR) regulations is to allow for the preservation/protection of significant historic properties and archaeological sites while allowing for additional growth in the appropriate locations. As part of the DBP, the City of Tempe is creating the TDR program to promote a voluntary historic preservation program. TDR allows owners of historic eligible, local historic register, and national historic register properties to obtain Incremental Project Value in exchange for voluntarily committing to the preservation of Tempe’s historic properties. The City can protect historic resources and establish a process and procedure by which a landowner can transfer the development rights of a certain property with historic structures or historic significance and apply the rights to another property that is eligible to receive additional development rights. Projects that are eligible to participate and that voluntarily participate in the DBP via Historic

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Preservation will receive bonus development rights in the form of TDR. TDR transfers with the sending property until sold to a receiving property, where the rights will reside once purchased.

Sending Properties Properties that participate in the UCD and meet DBP Historic Preservation eligibility requirements (e.g., have structures that are listed on the National Register of Historic Places, Tempe Historic Property Register, Tempe Historic Eligible, and structures that are 50 years or older and upon review are deemed eligible for the National Register of Historic Places) can become sending properties. In addition to opting into the UCD, the sending property owner must also undertake the following:

• Provide to the City a permanent historic conservation easement on the property, • Preserve the historic property to Historic Preservation Commission (HPC) approved

standards, and • Sign a Development Agreement with the City.

Once the TDR is approved, the development rights of the sending properties will be severed from the property. Receiving Properties Any property within UCs 1-5 that is eligible to receive a Bonus under the DBP — and has opted-in to the UCD and met the baseline requirements – is eligible to purchase and receive TDR, including the sending property site if it is large enough to accommodate both the historic building and new development. A Receiving Property does not need to acquire Bonus Points to build to the development potential obtained through TDR. However, under no circumstances can a receiving property exceed its specific UCMP heights and densities. A receiving property must use the processes specified under the Development Bonus Program pursuant to its Zone to obtain additional bonus entitlements. Procedure for Transfer The procedure for the implementation of the TDR shall be in accordance with the TDR ordinance which will describe how sending and receiving properties will be required to document the transfer. In addition, the sending and receiving properties will be rezoned with an overlay showing the changes in development rights. Once the TDR is approved, the development rights of the sending property will be permanently severed. The receiving property will be rezoned to reflect the new development rights. TDR Calculation The TDR on a property will be calculated as follows:

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1. Determine the existing height (at building roof eave, not apex), and floorplate of the existing building in the sending property to calculate existing volume (in cubic feet) of development.

2. Determine the development potential (cubic feet) in the sending property under the

corresponding Tier 2 Bonus using the bonus height times the square footage of the sending site’s maximum developable floorplate (e.g., site size less any required setbacks, open space, etc.).

3. Subtract the development potential cubic feet from the existing building cubic feet.

This is the amount of transferrable development right available to be sent to a receiving property.

The calculation established above can be summarized through the following formula:

A draft ordinance for TDR to include the elements discussed above has been developed.

Cubic Feet of Bonus Development Potential (sending site max floorplate Sq. Ft. x Tier 2 bonus height)

-

Existing Building Cubic Feet (existing floorplate Sq. Ft. x existing building height at roof eave)

= Total permitted development transfer in cubic feet

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3. Examples of Achieving Bonus Points This section provides some examples of how a developer could voluntarily participate in the DBP. UC-3 Multifamily Assume a Development Bonus Potential on a Site: A maximum of 130 ft and 65+ du/acre (100 points required) Example parcel: 3 acres • Base Development: 187,104 Square Feet, or 195 units • Bonus Development: 223,283 Square Feet or 255 units • Bonus Increment: 36,179 Square Feet, or 60 units • Potential Value Capture: $1.53 million Path to bonus points (example) • Provide 10 percent of net lot area as outdoor public gathering space (20 points) • Provide $1.25 million in qualified sustainability expenditures (75 points) • Total onsite element points: 95 • Total Bonus Points Required: 100 • Gap: 5 points obtained through in-lieu fee payment of $15,000 per bonus point Table 3: UC-3 Multifamily

Source: BAE; 2019.

Base Bonus PointsParcel Size (acres) 3.00 3.00Parcel Size (sf) 130,680 130,680Profits $1,653,623 $4,721,403Additional Residual Project Value $3,067,780Available for Value Capture 50%Potential Value Capture $1,533,890

Sustainability Element Expenditures $1,250,000 75Public Outdoor Gathering Space (10%) $196,020 20Subtotal $1,446,020 95

Gap Required through In-Lieu Fee $75,000 5Total $1,521,020 100

UC-3 Multifamily

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Tier 2: UC-2 Historic Preservation through TDR Development Bonus Potential: 140 ft Existing Building • Height: 30 Feet • Floorplate: 4,500 Square Feet • Total Existing Volume: 135,000 Cubic Feet (cft) Bonus Development Potential • Height: 130 Feet • Floorplate: 4,500 Square Feet • Total Bonus Volume: 585,000 Cubic Feet (cft) TDR • Height: 100 Feet (130’-30’), if the floor plate at the sending and receiving properties are

the same • Volume: 450,000 Cubic Feet (585,000 cft – 135,000 cft)

o 30,000 Square Feet at an average 15 ft ceiling height o 37,500 Square Feet at an average 12 ft ceiling height

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