Frankfort City Comprehensive Plan Charrette 3, March 8, 2006

Ordinances &

Authorities

Frankfort City Comprehensive PlanCharrette 3, March 8, 2006

Bruce Frankel

Indiana City Corporation

Ordinances

Zoning FormsImpact FeesInclusionary DevelopmentConcurrence & PhasingTax Policies for Redevelopment

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Zoning Forms

Traditional Planned Unit Form-Based Performance Combinations of above

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Tradition [Euclidean]

Separation by narrow range of uses and intensities in “districts”

ZONING

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Planned Unit

IC 36-7-4-1500 Moderate

mixture of uses and intensities

Large parcels planned and developed as a unit

Phasing Plan Promotes

useful public spaces + land conservation

ZONING

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Form-Based

Broad mixture of uses, separated by intensities

Restrictions center on permitted forms

Degrees of intensities [urbanization] moving from the center

Central business district form

Inner neighborhood form Outer neighborhood and

working landscapes forms

ZONING

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Form-Based Zoning Principles

ZONING

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Form-Based Design Components

ZONING

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Steps Toward Form-Based Zoning

1. Inventory existing conditions of the jurisdiction:– Street, block and building types– appropriate form and massing of buildings

2. Identify a set of organizing principles for the spatial structure, based on: – neighborhood, district, and corridor – Transect, which defines intensity of activity based on the transect zone that applies – Street-system-based regulatory plan – Special purpose zones

3. Define urban design standards: – establishing commercial street design guidelines, with the goal of "shaping the public

space of the street." 4. Define architectural standards:

– E.g., building types and frontage types 5. Illustrate the standards, to make it easier for those who will be implementing

the code.

ZONING

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Transect Planning

Andres Duany– “Transect Planning,” APA Journal, Summer 2002, Vol. 68, No. 3

The Transect is a natural law that can be observed anywhere and everywhere. A natural law is defined as a principle derived from observation of nature by right reason and thus ethically binding in human settlements.

The first appearance of the Transect as an intellectual construct was the “Valley Section” conceived by Sir Patrick Geddes early in the 20th century.

Currently promoted by the Congress of New Urbanism

ZONING

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Transect Planning

Construct of human habitats– Vary by level and intensity or urban character– Range from natural to urban– Basis for organizing by the components of the built

environment Building Lot Land use Street Public space Etc.

ZONING

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Transect Planning

ZONING

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Transect Planning

ZONING

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Transect Planning

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By City – New Orleans, Washington, San Francisco

ZONING

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By City – Miami, London, Paris

ZONING

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Examples of Form-Based Zoning Codes

Chicago [refer to blackboard course doc]

ZONING

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Chicago

The 1909 Plan of Chicago is one of the seminal documents of modern urban planning.

The city’s 1923 zoning ordinance was among the first in the nation

The 1957 ordinance introduced innovations Since 1989, more than a dozen major amendments

to the 1957 zoning ordinance—including provisions designed to protect the riverfront, improve landscaping, and limit building height.

ZONING

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Preamble to the Form-Based Chicago Zoning Ordinance

Chicago is a city of neighborhoods— and the vast majority of its residential areas have a very consistent scale and character.

A new zoning ordinance should reinforce these established patterns, which will help stabilize property values and encourage continued investment.

Most of the city’s low- to moderate-density neighborhoods were built prior to any zoning regulations. Builders used common development practices for each area. Front and rear yards on any given block were generally of an equal size. Yards were used as yards, not as paved-over parking pads. Building heights were matched to the surrounding structures, not to what could be squeezed out of regulatory loopholes. During the past decade, however, many developments have deviated from those traditions.

ZONING

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Principles – Residential Neighborhoods

Replace the bulk control formulas (FAR) used in some residential districts with building height, setback and coverage limits.

Eliminate front yard interruptions [“gap tooth effect”] —such as driveways, blank walls, and patio pits—while ensuring that residential buildings have consistent setbacks in both front and rear yards.

Remove the regulation that encourages high-rise residential buildings in areas where mid-rise development would be more compatible.

ZONING

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Performance

Broad or Narrow range of uses

Intensities and some uses conditioned on “performance”

Performance = Impact on neighboring properties neighborhood city as a whole

Evaluation of impacts [positive and negative] constitutes a “grade” [e.g., 75 of 100]

Very sophisticated

While traditional zoning specifies allowable land uses in each district, performance zoning specifies standards of land use intensity that are acceptable in each district. Performance zoning focuses on the performance of the parcel and how it impacts adjacent lands and public facilities, not on the use of the land. This gives municipalities and developers more flexibility in designing projects, because the use of a property is not restricted as long as the impacts to the surrounding land are not negative (as defined in the specific regulation).

ZONING

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Performance Standards

Performance Zoning Model Ordinance  Bucks County, Pennsylvania 

Natural Resource Protection Standards Open Space & Recreational Standards [NRPA] Architectural Design Standards Community Facilities and Associated Cost Responsibilities Fiscal Impact e.g.,

– Offsite infrastructure– School District Costs

Other Public Amenities e.g.,– Art– Mixed Use [commercial and residential]– Non-gated [public access]– TOD [transit]

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Performance

ZONING

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“Concurrence” & Phasing

May require more broadly defined infrastructure in place at time of new development

E.g., public schools, police, fire and other essential facilities and services

Ordinance

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Impact Fee

IC 36-7-4-1300 Impact

– Municipal or County Capital Budget only Infrastructure hard [“direct”] and soft [“indirect”] costs Land acquisition cost Associated cost of

– Planning [including comprehensive plan update]– Legal– Administrative– Other

– Infrastructure Sewer/ water/ drainage Thoroughfare Recreation

– Calculate fee in accord with IC 36-1-3-8[6] and 7-4-1318-et.seq pro rata impact over 10 years Allows reduced fee for affordable housing Resulting schedule of fee by type and intensity of development and an aggregate fee of every

impact

Ordinance

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Inclusionary Development

Establish districts for inclusionary development OR Floating district as a conditional use Exchange

– Set-aside [e.g., 20% fee simple affordable d.u.’s]– Density bonus and other affirmative measures

Common features– Required fee simple ownership or required rental [not permitted on market rate units]– Indistinguishable façade and grounds from market rate units– Price controls for a period of time [e.g., 30 or more years]– Household income eligibility at time of initial occupancy– Affordable at 50% and 80% of County Median Income

Merits– Controls form and tenancy of subsidized housing and integrates into community– Developer provides subsidy– Does it produce MORE affordable housing?– Does it produce BETTER affordable housing?

Ordinance

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Innovative Affordable Housing

Pyatok’s Adaptive Reuse of – Big Box Retail– Industrial

Michael Pyatok

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Break Up the Box

Outside Walled Security

Interior Courtyard

Apartments

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Industrial to Live-Work Lofts

Potrero Square LoftsSan Francisco, California

Formerly an industrial building in San Francisco's Potrero Square neighborhood, this brick structure was transformed to accommodate live-work lofts. Each loft has double height spaces and mezzanines. Five courtyards are carved into the mass of the 100-year structure to increase light and open space for the new occupants and a garage and elevator are included to meet their needs. The courts are carefully landscaped as surprising oases protected by a tough, brick fortress like exterior. Each unit has a large window facing a street and larger windows facing one or more of the interior courts.

AwardsGrand Award for best Rehabilitation or Conversion 1994, Gold Nugget Awards, Pacific Coast Builders Conference

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Mixed Use DowntownIncludes Affordable Housing

Swan's Marketplace

Oakland, California The renovation of this historic downtown Market Hall by the non-profit East Bay Asian Local Development Corporation includes a new fresh food market hall, restaurants, street oriented retail, 20 Cohousing condominium units and common house, 18 affordable rental units, live/work space, commercial office space, on-site parking and the Museum of Children's Art.

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Downtown Oaklandcontinued

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Tax Innovations for Redevelopment

TIF [Tax Increment Financing] Special Assessment Land Tax Tax Abatement

Tax Ordinance

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TIF [Tax Increment Financing]

Establish a redevelopment district Set up a trust account Capture increment in taxes from private

improvements and market value appreciation [accounts for public improvements]

Reinvest the added taxes of development/ redevelopment back into the district

District need not be contiguous– SR 28 improvements support the downtown

Can issue public bonds based on projected TIF revenue stream

Mainstay of Circle Center Square with Simon Properties

Tax Ordinance

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Special Assessment

Used for Code violations or abrogation of HOA responsibilities

Sequence: – City makes Improvements– Impose Special Assessment– Tax Default and Foreclosure– Tax Redemption

Tax Ordinance

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Land Tax

Convert Property Tax in a Redevelopment area to

a tax on land only – [based on size and location, not improvements]

Features– Aggregate tax bill remains the same initially– Induces private improvements by removing the

tax penalty; actually, if there is a penalty it is on not making improvements

Tax Ordinance

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Tax Abatement

Tax Abatement– Phased-in

To induce redevelopment district improvements on private properties

– Special assessment As in “agricultural assessment” But, could apply to other categories [e.g., historic districts]

PILOT [Payment In-Lieu Of Taxes]– Removal from the property tax rolls– PILOT to general purpose municipal government

Tax Ordinance

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Types of Tax AbatementsBrownfield

Brownfield Revitalization Zone Tax Abatement– IC 6-1.1-42– Assessed valuation deduction until the zone

“expires”– Amount of Deduction

3-Year [100%; 66%; 33%] 6-Year [100%;85%;66%;50%;34%;17%] 10-Year [100% and then decrements of 5-10%]

OR Local trust of State Taxes for revenue collected on redeveloped brownfield

Tax Ordinance

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Deduction for Rehabilitation or Redevelopment of Real Property in Economic Development Area

IC 6-1.1-12.1 Limited Economic Development Area to 10%

of the area within corporate boundary Excluded facilities [e.g., golf courses; retail

food and beverage; alcoholic sales; auto sales]

Types of Deductions– 1-Year through 10 Years

Tax Ordinance

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Other

Enterprise Zone Deduction of 1 to 10 Years– IC 6-1.1-45

Historic District Deduction

Tax Ordinance

Authorities & Partners

Corporate SponsorsImprovement AuthoritiesPrivate Nonprofit Partners

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Corporate-Sponsored Housing

Mortgage Guarantees Employees Neighborhood-Based to raise market values West-Philadelphia Initiative

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West Philadelphia Initiative

President Judith Rodin Urban Land Institute's Award for Excellence Components

– University Square, a 300,000-square-foot mixed-use project that boasts a luxury hotel, the Penn bookstore, numerous retail amenities, and valuable green space

– Hamilton Square, a 75,000-square-foot project featuring a specialty grocer, theater complex, and parking facility

– The Left Bank, a 700,000-square-foot, previously blighted warehouse that the university acquired and converted into apartment units, retail, and offices

– Penn Alexander Community School for students in grades pre-K-8– Buy West Philadelphia fiscal year 2005 alone, Penn purchased over $70

million in products and services from West Philadelphia based suppliers, bringing the 10-year total of Buy West Philadelphia to $544.8 million.

– Mortgage Guarantees to both faculty and staff to attract residents into the neighborhood.

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Improvement Authorities

Housing– IC 36-7-18-19

Redevelopment– IC 36-7-14-25

Economic Development– IC 36-7-11.9-27

Authority

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Private Non-Profit Instruments

IRC Section 501c3 CHDO [Community Housing Development

Organization]– LIHTC– Home Program of HUD

CDC [Community Development Corporation] CDFI [Community Development Financial Institution]

– Community Development Banking and Financial Institutions Act of 1994, as amended (12 U.S.C. 4701 et seq.)

– Federal Credit Unions– NMTC

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Housing Authority

Section 8 Housing Choice Voucher – Lafayette HA issues > 1,000– Lafayette, W. Lafayette and 5 mile radius– Edie Pierce-Thomas - Director

Tax-Exempt Bonds for Affordable Housing Low Income Housing Tax Credit Allocation

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Redevelopment

Assemble Parcels in blighted area Sell under performance contract to developer OR serve as the developer Issue Tax-Exempt Bonds Lafayette Redevelopment Commission

– Dennis Carson - Redevelopment Director

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Economic Development

Issue Bonds– Self-Liquidating and Not General Obligation Notes– Conduit Bonding [Letter of Credit, not the Authority, guarantees]– Taxable Bonds – Tax-Exempt Industrial Revenue Bonds

<= $10M < $2M with IFA’s Small Bond program <= $250K for first time farmers on capital assets <= 40 years APR 65-75% of prime 100% LTC Eligible Activities

– Manufacturing plants & equipment– Pollution control facilities– Qualified residential rental facilities– 501[c][3] organizations

Requires both EDA and City Council “inducement resolutions”

Coordinate with Municipal and County Tax Abatement and Other Incentives

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New Market Tax Credit Program

Initiative of the Federal CDFI [Community Development Financial Institutions]– Riegle Community Development Banking and Financial Institutions Act of 1994, and

administered by Treasury– 7 CDFI’s in Indiana investing > $4.8M

2 Indianapolis, e.g., Indiana Redevelopment Corporation serves entire state 2 Lafayette 2 Fort Wayne

Only in census tracts of >= 20% poverty Tax credit totals 39% over 7 years Forms of subordinated, low cost debt or joint equity Combine with Historic Tax Credits, Enterprise/ Empowerment Zone benefits Leveraging of $21/$1 Option: Frankfort creates a CDE [Community Development Entity] as a nonprofit

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ShoreBank

ShoreBank was the first and is the largest community development bank holding company in the U.S.

$1.4 billion corporation with for-profit and non-profit subsidiaries in Chicago, Cleveland, Detroit, the Pacific Northwest and the Upper Peninsula of Michigan

7054 S. Jeffery Blvd.Chicago, IL 60649773.288.1000 [email protected]