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HomeMy WebLinkAboutSTAFF REPORT Elkhorn Plaza Condos Rezone 2024-05-21 COMMUNITY DEVELOPMENT Memo To: Chair Matt Comstock Estes Park Planning Commission Through: Steve Careccia, Community Development Director From: Paul Hornbeck, Senior Planner Date: May 21, 2024 Application: Zoning Map Amendment of 540 and 550 West Elkhorn Avenue from RM (Multi-Family Residential) to CO (Outlying Commercial) Elkhorn Plaza Association, Owner/ Van Horn Engineering, Joe Coop/Applicant Recommendation: Staff recommends the Planning Commission forward a recommendation of denial to the Town Board of Trustees, subject to the findings described in the staff report. Land Use: Comprehensive Plan Designation: (Future Land Use): Downtown Existing Zoning District: RM(Multi-Family Residential) Site Area:0.84 Acres PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER______________ QUASI-JUDICIAL YES NO Objective: Conduct a public hearing to consider an application for a proposed Zoning Map Amendment (rezoning) from RM (Multi-Family Residential) to CO (Outlying Commercial), review the application for compliance with the Estes Park Development Code (EPDC), and make a recommendation to Town Board. Present Situation: 540 and 550 West Elkhorn Avenue is a 0.84 acresite that is currently zoned RM (Multi- Family Residential), and contains fifteen residential condominium units in two buildings. An application has been submitted by the owner’s association on behalf of the individual owners to rezone the property. According to County Assessor records, the buildings wereconstructed as condominiums in 1968 and 1970. As of April 1, 2024, four of the units are licensed by the Town of Estes Park as Vacation Rentals. Historically,the property was commercially zoned, with zoning maps from 1974 depicting the property as C-2 Restricted Commercial and 1989 as C-O Outlying Commercial. In 2000 the property was rezoned from C-O to R-M as a part of the larger valley-wide update to land use regulations and the zoning map. At that time, the Town of Estes Park Board of Trustees and Larimer County Board of County Commissioners approved a new Official Zoning Map and Estes Valley Development Code which replaced and amended the existing Code and Map. There is no record as to why this particular property was rezoned at that time, but one possible explanation is that commercial zoning did not match the residential use of the property. The zoning of a property should be consistent with the existing uses onsite whenever a zoning change is considered. Vicinity Map Subject Property 2 Zoning E-1 W. Elkhorn Ave RM A CO CO Subject Property Zoned RM Table 1: Zoning and Land Use Summary C OMPREHENSIVE P LAN Z ONING U SES S UBJECT P ARCEL Downtown RM (Multi-Family Residential) Residential N ORTH Downtown A (Accommodations) Accommodations/ Undeveloped S OUTH Downtown A (Accommodations) Accessory Use to Accommodations E AST Downtown A (Accommodations) Undeveloped W EST Downtown A (Accommodations) Accommodations Proposal: The applicant has requested to rezone 540 and 550 West Elkhorn Avenue fromRM (Multi-Family Residential) to CO (Outlying Commercial). The statement of intent (Attachment #2) indicates the rezoning is being driven by a desire to combine the subject parcels and the parcel to the north into a single parcel to be consistent with the 3 property’s condominium declarations. All three parcels are owned by the Elkhorn Plaza Owner’s Association but have different zoning, with the northern parcel zoned COand the southern parcels zoned RM.Combining the three parcelswithout rezoning either the subject parcels to CO or the northern parcel RM would result in split zoning (i.e. a parcel with more than one zone district). The Estes Park Development Code (EPDC) discourages,but does not prohibit, split zoning, and best practice is to avoid split zoning due to the complications it can cause. The statement of intent indicates other rationale for the rezoning, including: Making future redevelopment more viable (no redevelopment is planned at this time) Lack of awareness of the owners of the 2000 rezoning and a desire to return to the previous zoning Consistency with neighboring lots Ability to rent the units as vacation rentals All applications for text or Official Zoning Map Amendments shall be reviewed by the Planning Commission and Town Board for compliance with the relevant standards and criteria set forth below and with other applicable provisions of the EPDC. In accordance with Section 3.3D “Standards for Review” of the EPDC, all applications for rezoning shall demonstrate compliance with the applicable standards and criteria: 1. The amendment is necessary to address changes in conditions in the areas affected. Staff Discussion:There have been changes in conditions since the current zoning was established in 2000. Changes include development of Fall River Village to the northeast, impacts of the 2013 Flood, and redevelopment of the Elkhorn Lodge. More broadly, changes in conditions include decreasing housing affordability in the area and adoption of a new Comprehensive Plan (2022). Staff Finding:While there have been changes in conditions in the area, they are not substantial enough or of a nature that makes rezoning necessary to address the changes. The property has historically been used for residential purposes and will likely continue to be used as such in the future. 2. The Development Plan, which the proposed amendment to this Code would allow, is compatible and consistent with the policies and intent of the Comprehensive Plan and with existing growth and development patterns in the Estes Valley. 4 Staff Discussion:Since no new development is currently proposed, staff has waived the development plan requirement per Section 3.3.B.1 of the Estes Park Development Code: “All applications seeking to amend this Code to allow a change from one (1) zone district to a different zone district or seeking to amend this Code by changing the permitted uses in any zone district shall be accompanied by a development plan. This requirement may be waived by Staff if it finds that the projected size, complexity, anticipated impacts or other factors associated with the proposed development or subdivision clearly justify such waiver.” While no new development is planned, the rezoning can still be reviewed for compatibility and consistency with the policies and intent of the Comprehensive Plan and with existing growth and development patterns in the Estes Valley. The Comprehensive Plan has nine Guiding Principles for the Estes Valley, including “Housing opportunities sufficient to support a multigenerational, year- round community.” (p. 7) The Plan goes on to state: To achieve the multigenerational, year-round community envisioned in Estes Valley, the workforce needs stable, affordable housing options and a housing market that will allow diverse young families to grow into the community. Demand for housing in Estes Valley has outpaced supply for years leading to decreasing affordability, overcrowding of the few housing options that are available, increasing reliance on commuters to fill jobs, and jobs going unfilled. This Housing element establishes goals and policies to create housing opportunities. By investing in housing to meet the needs of the workforce and families there will be more housing choices for the entire community including seasonal workers and those seeking to age in Estes. Furthermore, the Plan recommends the following action: H 1.F: Continue limit to short-term rental of residential units, within the limits of the Town’s authority, and consider reducing the number of short- term rentals to encourage more long-term rental units for housing. Staff Finding:The proposed rezoning is not compatible and consistent with the housing policies and intent in the Estes Forward Comprehensive Plan. Municipal Code Section 5.20.110(b) caps the number of vacation rentals allowed in residential zones to 322 licenses in effect at any given time. Rezoning the subject property from RM to CO would allow the owners of the eleven dwelling units not currently licensed as vacation rentals to apply for licenses to be converted to vacation rentals. Additionally, the four existing licenses would no longer count 5 against the cap of 322, meaning four other dwelling units in town would become eligible to be converted to vacation rentals. The Vacation Home Rental Fee Study prepared by Root Policy Research and presented to the Board of Trustees on 2022 attempted to quantify the impact of vacation rentals on the local housing market. It found that the continued operation of vacation rentals has a detrimental impact on the availability of workforce housing within the Town: Every 100 STRs in Estes Park leads to a loss of 3-9 rental units and 4-9 ownership units that would otherwise be occupied by local residents (total resident housing loss of 7-18 units). In addition, every 100 STRs in Estes Park result in an $11 increase in monthly rent of resident units and a $6,500 increase in home prices. Not every vacation rental is a lost opportunity for workforce housing but the study shows there’s an overall negative impact by vacation rentals on housing affordability. While not compatible and consistent with Comprehensive Plan, the rezoning would be compatible and consistent with existing growth and development patterns in the Estes Valley and surrounding neighborhood. 3. The Town, County or other relevant service providers shall have the ability to provide adequate services and facilities that might be required if the application were approved. Staff Finding:The property is developed with existing residential uses and is currently served byutilities. No comments in opposition to the rezoning were received and no comments indicated an inability to provide adequate services and facilities from service or utility providers. Advantages: If the subject parcels are combined with the parcel to the north as desired by the applicant, this rezoning (or rezoning of the north parcel) would prevent creating split zoning with different zone districts on a single parcel. The rezoning would be advantageous to the owners since it would allow conversion of the units to vacation rentals, which are more economically lucrative than long term rentals. Use as vacation rentals does fit with the character of the corridor, which is largely accommodations, with good access to downtown and the National Park. Rezoning could also allow future redevelopment as a more intense commercial use, such as a hotel or retail. Such a use might provide positive economic growth with new jobs and increased tax revenue. 6 Disadvantages: As mentioned previously, the rezoning would allow 11of the units to be converted to vacation rentals along with the conversion of four other dwellings in Town that are currently on the vacation rental waitlist. The Vacation Home Rental Fee Study prepared by Root Policy Research demonstrated that vacation rentals have a detrimental impact on the availability of workforce housing within the Town. Rezoning the property from CO to RM would have the effect of intentionally creating a non-conforming use since residential dwellings are not permitted in the CO district. This could create complications for owners. For example, EPDC Sec. 6.3 prohibits the alteration or extension of non-conforming uses. The Board of Adjustment recently approved a variance to enlarge the existing decks which encroach into the river setback and building setbacks. Such an enlargement of the existing decks would likely be considered an alteration or extension and thus not permitted. Rezoning would also potentially allow businesses allowed in the CO zone district to operate in the dwelling units. The close intermixing of residential and commercial uses could create conflicts. There may be private covenants that prohibit businesses from operating within the units but from the Town’s perspective businesses would be allowed, potentially subject to additional review. Public Comments: A neighborhood and community meeting regarding the rezoning project was held in the at US Bank on April 12, 2024. Two owners attended but no neighbors or anyone else with concerns/questions attended. No public comments have been received about the rezoning. In accordance with the notice requirements in the EPDC, notice of the Planning Commission meeting was published in the Estes Park Trail-Gazette, on May 3, 2024. Notice was mailed to all required adjacent property owners on May 1, 2024. Any public comments received will be posted to https://estespark.colorado.gov/currentapplications Recommendation: Staff recommendsPlanning Commission forward to Town Board a recommendation of denial of the proposed Zoning Map Amendment including the following findings of fact: 1. The Planning Commission is the Recommending Body for the Zoning Map Amendment. 2. The Town of Estes Park Board of Trustees is the Decision-Making Body for the Zoning Map Amendment. 7 3.The application does not comply with EPDC § 3.3.D.1. There have been changes in conditions in the area, but they are not substantial enough or of a nature that makes rezoning necessary to address the changes. 4. The application does not comply with EPDC § 3.3.D.2. The proposed rezoning is not compatible and consistent with the housing policies and intent in the Estes Forward Comprehensive Plan. 5. The application complies with EPDC § 3.3.D.3. The application has been submitted to all applicable reviewing agency staff for consideration and comment. No comments indicated an inability to provide adequate services and facilities. 6. The application does not comply with EPDC § 4.4.B - Table 4-4 - Permitted Uses: Nonresidential Zoning Districts and would create a non-conforming use. Sample Motions for theZoning Map Amendment: 1. I move to forward a recommendation of approval to the Town Board of Trustees of the Zoning Map Amendment application, finding that…\[state reasons for approval 2. I move to continue the Zoning Map Amendment application to the next regularly scheduled meeting, finding that … \[state reasons for continuing\]. 3. I move to forward a recommendation of denial to the Town Board of Trustees of the Zoning Map Amendment application, according to findings of fact recommended by Staff. Attachments: 1. Application 2. Statement of Intent 3. Rezoning Map 4. Neighborhood Meeting Summary 8 STATEMENT OF INTENT REZONING REQUEST THE ELKHORN PLAZA ASSOCIATION Being a portion of the Northeast Quarter of Section 26, and the Northwest Quarter of Section 25, th Township 5 North, Range 73 West of the 6 P.M., Town of Estes Park, Larimer County, Colorado. January 26, 2024 Revised May 13, 2024 PROJECT LOCATION: 540 and 550 West Elkhorn Avenue OWNER: Elkhorn Plaza Association PROJECT DESCRIPTION FOR THE ELKHORN PLAZA ASSOCIATION: This rezoning request came about from a series of revelations that occurred when the Elkhorn Plaza Association decided it was time to rebuild their decks. The decks are over 50 years old now and in need of replacement. The condominiums were built in 1968 and 1970. The decks are a little small by current standards, so the owners would like to rebuild the decks a little bigger, ten feet wide, as opposed to replacing them at 5Ó-4Ñ Î 6Ó as they are now. Unfortunately the current decks are already in violation of the 10Ó rear yard setback and the 30Ó Fall River setback. Any expansion will require a variance to both setbacks. The variance application is in process simultaneously with this rezoning application. In order to enlarge the decks, an amended condominium map will need to be prepared to accommodate for the increase in the Limited Common Elements for each unit. The initial condominium property was one of the first ones in the Estes Park area, condominiumized in 1968 and 1970, and it was set up a little differently than they typically are now. Each building was condominiumized on its own lot, each with different names, however the condominium declarations were prepared as one association, which isnÓt standard. The owners would like to update the condominium maps by combining the lots into one lot to be consistent with the declarations. This would include the separate vacant lot the association acquired in 1971. That separate lot is triangular shaped, mostly in floodplain and is located to the north of the buildings along the Fall River. The advantage they see is that if the buildings are redeveloped in the future, the property will be more conforming to modern approaches as to size and can accommodate a larger development without the constraints of the current property lines. The lot consolidation will also eliminate the need for setback variances to the rear lot lines in the variance request. This lot consolidation process would be done through the amended condominium map process if the rezoning is approved and once they are built. Ironically, the setbacks will increase from 10Ó to 15Ó if this rezoning request is approved, so the lot consolidation would be even more appropriate since they would need a larger variance in the CO zone. The final revelation was made when it was noted that the vacant lot is zoned CO and the two condominium lots are zoned RM. The lot consolidation would thus create a split zoned property. This isnÓt illegal, but it isnÓt appropriate. This is why we are requesting the rezone. The vacant lot has been owned by the association since 1971, but the rezoning process in 2000 did not take into account common ownership and rezoned the condominium properties from CO to RM, but did not rezone the vacant lot. They basically spot zoned only the Page 1 of 2 condominiums lots in 2000. Several of the current owners were owners in 2000 and do not recall the change in zoning. They feel this was not right since they were essentially downzoned without their notification. The HOA as a group would like their zone to go back to what it was prior to the 2000 rezoning effort. The CO zone would be more consistent with the neighboring lots which are all CO as well. It would make the property more amenable to redevelopment. It would also enable the properties to more easily be rented nightly since this is in an accommodations corridor and they are within walking distance of town and provide their own parking. Five of the units are already nightly rentals and this would make the nightly rental conforming as to zone. One concern with the rezone to CO is that it would make the residential units a non-conforming use. It essentially would make them legal non-conforming. However the five units that are already vacation rentals would be legal since it is a permitted use in the CO zone. Standards for Review: 1. The amendment is necessary to address changes in conditions in the areas affected; This rezoning request is appropriate in order to combine the lots to avoid a split zoned lot. The lots were all zoned C-O in 1999 but the town changed it, as mentioned earlier, with the 2000 Rezoning and Code effort. As stated above the owners would like their old zone back that was changed without their knowledge. It also reflects the use of the property since several of the owners rent them as nightly rentals and several would also like to rent nightly. This property is ideal for nightly rental because it is close to town and nightly rentals would subsequently be a legal use in the C-O zone. The Maxwell Inn and the Elkhorn Lodge are their immediate neighbors and they are zoned for nightly rentals, so this use fits in the neighborhood. 2. The development plan, which the proposed amendment to this Code would allow, is compatible and consistent with the policies and intent of the Comprehensive Plan and with existing growth and development patterns in the Estes Valley; This is consistent with the Comprehensive plan to have high density close to town and walkability for tourists. Otherwise, nothing is really changing with this rezoning request. 3. The Town, County or other relevant service providers shall have the ability to provide adequate services and facilities that might be required if the application were approved. All utilities are currently serving the property. Thank you for your consideration of this proposal. Sincerely, Joseph W Coop, Van Horn Engineering Page 2 of 2 LAND SURVEYS SUBDIVISIONS DEVELOPMENT PLANNING IMPROVEMENT PLATS VAN HORN ENGINEERING AND SURVEYING STRUCTURAL ENGINEERING SANITARY ENGINEERING MUNICIPAL ENGINEERING April 16, 2024 Town of Estes Park 170 MacGregor Avenue Estes Park, CO 80517 Attn: Community Development RE: Elkhorn Plaza 540 and 550 West Elkhorn Avenue Neighborhood Meeting April 12, 2024 We held a neighborhood meeting on April 12, 2024 for the Elkhorn Plaza 540 and 550 West Elkhorn Avenue Rezoning project. The owners showed, but no neighbors or anyone else with concerns/questions. Attendees raised no questions pertaining to the project. Thank you Joe Coop Project Manager Van Horn Engineering and Surveying Inc. 1043 Fish Creek Road Estes Park, Colorado 80517 970-586-9388 E-mail: info@vanhornengineering.com