PUBLIC HEARING ITEM:

PLANNING COMMISSION REPORT

Regular Agenda - Public Hearing Item

PC Staff Report

07/23/07

ITEM NO 4A: PCD-2 TO PCD-2; 25.97 ACRES; NORTHEAST CORNER OF W. 6^TH

STREET & WAKARUSA DRIVE (PGP)

Z-06-07-07: A request to rezone a tract of land approximately 25.97 acres from conditionally approved PCD-2 (Planned Commercial Development) District to PCD-2 (Planned Commercial Development) District to revise use restrictions. The property is generally described as being located at the northeast corner of W. 6^th Street and Wakarusa Drive. Submitted by Landplan Engineering, P.A., for Free State Holdings Inc, Free State Group LLC and Michael Treanor contract purchasers. The property owners are Carolena Ltd. And HenrysFlower LLC.

STAFF RECOMMENDATION: Planning Staff recommends approval of the proposed rezoning of 25.97 acres from PCD-2 (Planned Commercial Development – restricted uses) District to PCD-2 (Planned Commercial Development – with modifications to restricted uses) District, for the following changes: allow multiple family residential use (without restricting the first floor to only office or commercial), allow Licensed Premises use and allow for Liquor, wine and beer sales, for consumption off the premises; based on the findings of fact found in the body of the staff report and forwarding a recommendation for approval of these modifications to the City Commission, subject to the following suggested conditions:

Approval of a Preliminary Development Plan.
Filing of a Final Plat for the property at the Register of Deeds Office.
No one building shall be larger than 50,000 gross square feet of space.
The permitted list of uses be included as part of the rezoning ordinance.
There will be no more than 62,000 gross square feet of retail commercial space in the PCD-2 portion of the Planned Unit Development.

Planning Staff recommends denial of the requested change from 62,000 SF of commercial retail to 72,000 SF of commercial retail as a total 62,000 square feet of commercial retail is the maximum allowed for the northeast corner per the approved Area Plan for W. 6^th Street and Wakarusa Drive.

Applicant’s Reason for Request:

“A.To remove an unfeasible, economically unviable land use restriction that requires retail or office to occupy the ground floor of residential structures within the subject district. See attached proposed use list. B. To expand the current 62,000 square feet retail commercial space limitation (per Ordinance No. 7756) to 72,000 square feet. See attached letter to Planning Director. C. to ensure ‘Licensed Premises’ is allowed”.

KEY POINTS

· Applicant seeks to modify the use restrictions previously conditionally approved for the commercial development PCD-2 portion of Bauer Farm.

· The approved nodal plan for Wakarusa Drive and W. 6^th Street limits the commercial retail for the northeast corner of the intersection to 62,000 Square Feet.

GOLDEN FACTORS TO CONSIDER

CONFORMANCE WITH THE COMPREHENSIVE PLAN

· To be in conformance with the comprehensive and area plan, the rezoning of this portion of the property needs to have restrictions imposed.

RELATIVE GAIN TO THE PUBLIC HEALTH, SAFETY AND WELFARE

· The rezoning, as conditioned, will not destroy the value of the subject property or impose a hardship on the landowner or the general public.

ASSOCIATED CASES/OTHER ACTION REQUIRED

Rezoning of the west side of Champion Lane from Agriculture to Planned Commercial Development initiated by the City with approval by the City Commission on March 16, 2004 [Z-06-20-03].
Ordinance No. 7756, existing PCD-2 zoning with restrictions to this property.
Rezoning PCD-2 (with restrictions) to PCD-2 (with modified restrictions) [Z-07-48-05] conditionally approved by the City Commission on January 10, 2006.
Bauer Farm Preliminary Development Plan [PDP-03-02-05] conditionally approved by the City Commission on January 10, 2006 with direction that a revised Preliminary Development Plan meeting the conditions of approval be brought back before them for their review.
Final Development Plan approval by Planning Commission.
Final Plat approval by Planning Commission and acceptance of easements and right-of-ways by the City Commission.
Zoning Ordinance Approval and Publication

PUBLIC COMMENT RECEIVED PRIOR TO PRINTING

No public comment has been received as of the writing of this staff report.

GENERAL INFORMATION

Current Zoning and Land Use: PCD-2 (Planned Commercial Zoning District with specific restrictions); Undeveloped, unplatted, with a conditionally approved planned unit development on the property.

Surrounding Zoning and Land Use: GPI (General Public and Institutional) District to the north; Across Overland Drive – Free State High School.

PRD (Planned Residential Development) District to the east; Undeveloped, currently used for agricultural crop production.

PCD - [Westgate] (Planned Commercial Development) District to the south; Across W. 6^th Street, existing commercial retail.

PCD – [Wakarusa Place] (Planned Commercial Development) District to the west; Undeveloped.

Reason for Request: Applicant’s Response -“ A.To remove an unfeasible, economically unviable land use restriction that requires retail or office to occupy the ground floor of residential structures within the subject district. See attached proposed use list. B. To expand the current 62,000 square feet retail commercial space limitation (per Ordinance No. 7756) to 72,000 square feet. See attached letter to Planning Director. C. To ensure ‘Licensed Premises’ is allowed”.”

The applicant is proposing to modify the previous PCD-2 restrictions which were placed upon this property.

A revised Preliminary Development Plan was submitted to the Planning Office on July 6, 2007. A copy of the proposed revised Preliminary Development is included in Planning Commissioner’s packet for reference but is not an item for Planning Commission action.

At the January 10, 2006 City Commission meeting, the City Commission directed that a revised Preliminary Development Plan for Bauer Farm meeting the conditions of approval be brought back before them for their review.

The January 10, 2006 conditions of approval included:

1. Provision of KDOT approval of a right-in-only on W. 6^th Street between Champion and Wakarusa or a revised Preliminary Development Plan removing same.

2. Reconfigure Champion Lane to connect more directly to Overland Drive. Revise Traffic Study to reflect revised plan.

3. Revise Drainage Study per City Stormwater Management Coordinator’s approval.

4. Completion of downstream wastewater analysis per City Policy.

5. Provision of allowed uses on face of development plan according to approved list from October 24, 2005 Planning Commission meeting with drive-thrus limited to ~~four drive-thrus, one or more of which would be a bank.~~ two restaurants, one bank, and one other (non-restaurant use, such as a pharmacy drive-thru).

6. Provision of draft covenants and restrictions and property owner association guidelines, including architectural elements/patterns, for review and response by Planning Office.

7. Approval of requested four Waivers and three modified Subdivision Design Standards for:

· Waiver 1. Lot size.

“B – Starter Homes”, lot widths of 35’ x 100’ lot depths. Footprint dimensions of townhouses of 20’ x 40’.

· Waiver 2. Periphery Boundary.

2a. 30 feet commercial peripheral to 10’ setbacks on W. 6th Street, 17’ setback on Wakarusa Drive, 10’ setback on Overland Drive, and 10’ setback on Folks Road;

2b. 35 feet residential peripheral to 10’ setbacks on Overland Drive, 10’ setbacks on Folks Road, and 16’ setbacks on W. 6th Street; and

2c. No peripheral boundary setback between the PUD areas within Bauer Farm.

· Waiver 3. Residential Setbacks.

3a. Distances less than 10’ between the “A” Custom Homes and “B” Starter Homes and between the Cottages above the “A” garages and the “B” Starter Homes; and

3b. Residential front yard setbacks of approximately 10 feet, and side and rear yard setbacks less than 10 feet; providing the structures are designed to meet the building code requirements for zero setback.

· Waiver 4. Commercial Setbacks.

Commercial building setback as close as 10’ on W. 6th Street, 17 feet on Wakarusa Drive, and 10’ on Champion Lane (if the northern leg is not vacated or depending upon relocation of Champion Lane).

· Subdivision Design Standard 1. Offset streets.

Local streets intersecting opposite sides less than 125 feet.

· Subdivision Deign Standard 2. Alleyways.

Alleyways within the residential areas of the subdivision.

· Subdivision Design Standards 3. (Private) Street width

Local private street widths of 20 feet B-B (back-of-curb to back-of-curb).

8. Elimination of 50’ Setback by text amendment by City Commission, BZA variance on the setback or revised PDP to include the setback.

9. Agreement not to protest formation of benefit districts for signalization and/or geometrics at the following sites:

6th and Champion;
Overland and Wakarusa; and
Folks and Overland.

10. Revised PDP to include estimated phasing and schedule of construction.

11. Provision of notes regarding ADA and accessibility.

12. Proposed Future Phase Hotel/Convention Center area not to allow commercial retail uses.

The applicant noted the following changes and alterations to the proposed revised Preliminary Development Plan submitted on July 6, 2007 from the revised PDP submitted to and reviewed by staff in March 2007.

“Per an application dated 6/6/07, we have requested the rezoning of the PRD-2 District to a PRD-3 District. See Sheet 1 for revised Residential Unit Density under proposed PRD-3 zoning. See attached Open Air Recreation Area Exhibit for illustration of open air recreation acreage provided under proposed PRD-3 zoning.
Per a rezoning application dated 6/6/07, we have requested an additional 10,000 GSF of retail floor space. The total proposed retail gross square footage shown on this plan is 72,000. In line with this change, we have added 6,150 GSF to the ground floor of the building in Lot 5, Block Six. The remaining 3,850 GSF of retail is distributed among multiple buildings along W. 6^th Street.
Per a rezoning application dated 66/07, we have requested that ‘Licensed premises’ and ‘liquor, wine and beer sales, for consumption off the premises’ be added to the list of allowable use groups. These uses are shown on the list on Sheet 4.
The pharmacy building has moved from the lot on the NE corner of Champion Lane and W. 6^th Street to the lot at the corner of Wakarusa Drive and W. 6^th Street.
The 1,800 GSF restaurant has moved from a lot adjacent to the PRD to the lot at the NE corner of Champion Lane and W. 6^th Street.
The 5,000 GSF drive-thru bank has moved from the corner of Wakarusa Drive and W. 6^th Street to the corner of Folks Road and W. 6^th Street.
There is an additional drive-thru restaurant shown in Lot 2, Block Nine. In conjunction with this revision, we request that PDP Condition of Approval No. 5 from the City Commission action letter dated 1/19/06 be revised to state “…Three restaurants, one bank, and one other (non-restaurant use, such as a pharmacy drive-thru).” The additional drive-thru is necessary to sustain the economic vitality and vibrancy of the overall development.
The right-in-only turn shown on previous plans from W. 6^th Street into the site is now shown as a right-in-right-out. This revision will enhance traffic flow between sites within Bauer Farm without negatively impacting traffic flow into and out of the site. See attached Traffic Impact Study memorandum for a review of the traffic impact.
The plan shows two additional right-in-only turns: one from W. 6^th Street into the pharmacy site and a second from Wakarusa Drive into the pharmacy site. This additional access is necessary for a site which will anchor the PCD portion of the development. Again, refer to the attached TIS memorandum.” – Landplan Engineering.

I. ZONING AND USES OF PROPERTY NEARBY

Applicant’s Response: “H2020 calls for retail/commercial use in the subject area; no significant change to formerly-approved land use is proposed.”

Staff Finding - The subject property is located at the northeast corner of W. 6^th Street and Wakarusa Drive. The property is bounded by Overland Drive to the north, W. 6^th Street to the south, residential portion of Bauer Farm to the east, and Wakarusa Drive to the west. The site is within the incorporated city limits of the City of Lawrence.

There is a wide variety of land uses and zoning patterns surrounding the subject property. Nearby development patterns occur in various stages ranging from undeveloped lands to the east and west, and commercial retail and office development across W. 6^th Street/Highway 40 to the south. Public and institutional uses are located across Overland Drive north of the property. Multiple-family residential across Overland Drive northeast of the property.

Zoning patterns around the property include GPI (General Public and Institutional) to the north; PRD (Planned Residential Development) to the east; PCD (Planned Commercial Development) to the south and west.

II. CHARACTER OF THE NEIGHBORHOOD

Applicant’s Response, “Subject property is surrounded by major thoroughfares, commercial properties, a high school, and higher density residential dwellings.”

The subject property is within the City limits. Located across Overland Drive to the north is Free State High School. The requested rezoning is within the 43-acre conditionally approved Bauer Farm Planned Unit Development. The revised Preliminary Development Plan will be reviewed for acceptance and conformance to conditions of approval by the City Commission. A copy of the applicant’s proposed revised Preliminary Development Plan is included in the Planning Commission’s packet for reference.

Located to the south across West 6^th Street is a variety of commercial and office uses including a bank, fast food restaurant, auto service center, video rental store, supermarket, and a shopping center offering a variety of goods and services. The area to the west across Wakarusa Drive is also zoned PCD-2/[Wakarusa Place] (Planned Commercial Development).

Staff Finding - The subject property is surrounded by a variety of uses at urban development intensity. These uses include commercial, office, and public/institutional development. Those areas that do remain undeveloped are quickly developing or are planned to be developed in the near future.

III. SUITABILITY OF SUBJECT PROPERTY FOR THE USES TO WHICH IT HAS BEEN RESTRICTED

Applicant’s Response, “Subject property is unsuitable to existing use restrictions; present requirement for ground-floor office is unfeasible in present-day Lawrence. B. The restriction to maximum 62,000 square feet retail upon approximately 30 acres of commercial-zoned property creates an unacceptably low density development and contradicts the principles of efficient urban land use and design. C. ‘Licensed premises’ is required for a successful restaurant environment within the PCD, therefore current restrictions appear to be unsuitable.”

Appropriateness of modifying the restrictions placed on this PCD-2 (Planned Residential Development) Designation.

The PCD-2 (Planned Commercial Development) District with permitted uses as indicated per the previous conditional approval would still be appropriate for this property. However, as part of the Bauer Farm PUD, the applicant is proposing to use the PCD-2 portions of the property for more intense traffic generating uses including: increasing the commercial retail from 62,000 GSF to 72,000 GSF; allowing multiple-family residential on the 1^st floor; an additional drive-thru restaurant; and to ensure that licensed premises and the off sale of premises of alcohol, wine and beer are allowed.

Staff Finding - In staff’s opinion, the property is still suitable for the permitted uses as previously conditionally approved by the City Commission on January 10, 2007.

IV. LENGTH OF TIME SUBJECT PROPERTY HAS REMAINED VACANT AS ZONED

Applicant’s Response, “The property has remained vacant since its unilateral rezoning to PCD-2 in 2005.”

Staff Finding - The subject property was rezoned to PCD-2 in 2004 and conditionally rezoned with modifications in use restrictions in 2006. Prior to 2004, it had been zoned A (Agricultural) District since 1966. It was annexed into the City in 1995.

V. EXTENT TO WHICH REMOVAL OF RESTRICTIONS WILL DETRIMENTALLY AFFECT NEARBY PROPERTY

Applicant’s Response, “No detrimental affect is anticipated.”

Staff Finding - Removal of the existing PCD-2 restriction and rezoning to PCD-2 with modified restrictions which would allow for a greater traffic generation, would increase the potential traffic generation by this property. A revised Traffic Impact Study (July 6, 2007) that includes the proposed uses shows the amount of traffic that the proposed new uses would attract is an increase from the prior TIS (revision of March 7, 2007), from 1,449 to 1,562 (113) PM peak hour weekday trips and an increase from 12,719 to 15,111 (2,392) total daily weekday vehicle trips.

VI. RELATIVE GAIN TO THE PUBLIC HEALTH, SAFETY AND WELFARE BY THE DESTRUCTION OF THE VALUE OF THE PETITIONER’S PROPERTY AS COMPARED TO THE HARDSHIP IMPOSED UPON THE INDIVIDUAL LANDOWNERS

Applicant’s Response, “A. If approved, the public will benefit by removal of a land-use restriction that could relegate the development to poor performance or failure, due to an historically anemic Lawrence office market. B. Denial of the request to expand allowable retail square footage to 72,000 will promote one of the lowest-density retail developments in the state, in contradiction with the principles espoused by the City of Lawrence and inherent in sound, efficient urban land development practices. C. Denial of the request for “licensed premises” will threaten the sustainability of businesses by prohibiting a popular commercial service within a customer-oriented commercial environment.”

Evaluation of this criterion weighs the benefits to the community-at-large versus the benefits to the owners of the subject property. Benefits are measured based on the anticipated impacts of the rezoning request on the public's health, safety and welfare.

Typically, property within the city limits that is zoned for commercial uses has a higher value than property zoned for residential use. Rezoning the subject property from PCD-2 to PCD-2 with additional permitted uses will better facilitate the development of the subject property within the context of the proposed Bauer Farm Planned Unit Development.

The existing restriction that no building permit be issued until W. 6^th Street Project is substantially completed is no longer valid as W. 6^th Street improvements have been completed. Approval of the requested permitted uses will result in an increase in future traffic at a higher rate than what was anticipated with the prior conditional zoning approval.

Staff Finding - The rezoning of this land will not destroy the value of the subject property or impose a hardship on the landowner, but would facilitate the potential for a more successful project for the developer. A change in permitted uses of higher traffic generators, will result in an incremental increase in the future traffic near this location, and along W. 6^th Street.

VII. CONFORMANCE WITH THE COMPREHENSIVE PLAN

Applicant’s Response, “H2020 calls for retail/commercial use in the subject area; no significant change to formerly-approved land use is proposed.”

An evaluation of the conformance of this rezoning request with the City’s Comprehensive Plan is based on the goals, policies and recommendations in Horizon 2020 and upon the approved W. 6^th Street and Wakarusa Drive Nodal Plan. The following are referenced sections of Horizon 2020:

Chapter 6 Commercial Land Use

Community Commercial Center (under 200,000 commercial gross square footage): CC200 (Chapter 6 – Page 6)

West 6^th Street and Wakarusa Drive (6-15 & 16)

Page 6-16, W. 6^th Street and Wakarusa Drive, The intersection of W. 6^th Street and Wakarusa Drive is an existing Community Commercial Center limited to 200,000 square feet of commercial gross square footage (CC200 Center) with a nodal development pattern. While this intersection is designated a CC200 Center, there already exists more commercial gross square footage at the intersection than is recommended for a CC200 Center.

Portions of the intersection of W. 6^th Street and Wakarusa Drive are still developing. However, the southern half of the intersection is completely developed and shall not be expanded beyond the existing commercially zoned property. The northern half of the intersection is undeveloped. Commercial development of this portion of the intersection shall not extend beyond Overland Drive (extended) to the north, Congressional Drive (extended) to the west; and Champion Lane (extended) to the east. Development proposals for the northern portions of the intersection shall include not only commercial uses, but also a variety of other uses including office, community, recreational and multi-family uses.

Criteria for Community Commercial Centers (under 200,000 square feet) (6-32)

Require a Market Impact Analysis (6-36 & 37)

The applicant previously provided a Market Impact Study for the Bauer Farm project. The market study indicated the commercial project can be absorbed into the community within three years from completion, and that it would not result in a community wide retail vacancy rate of greater than eight percent.

AREA PLAN - W. 6^th/WAKARUSA DRIVE

The following information comes from AN AREA PLAN FOR THE INTERSECTION AREA OF WEST 6^TH STREET & WAKARUSA DRIVE. The plan was approved by the Lawrence City Commission on December 2, 2003.

The West 6^th Street/Wakarusa Drive study area is anticipated to evolve into one of the more prominent commercial centers of the community. The Lawrence City Commission has directed City staff to ensure new development at this intersection area is appropriate for the surrounding neighborhoods and also within the context of the entire community. The City Commission has also directed City staff to ensure that new development is compatible with existing development located within and adjacent to the intersection area. Any development proposals for this intersection will come under close scrutiny to ensure this direction is abided by. The following land use recommendations regarding the development of the West 6^th Street/Wakarusa Drive study area are based on the analysis of the above identified existing conditions and envisioned future of this intersection area. In addition to the recommendations below, it is recommended that no building permits be issued for the study area until the West 6^th Street Improvement Project is substantially completed.

The Area East of Wakarusa Drive

The area located east of Wakarusa Drive (the northeast corner of the West 6^th Street/Wakarusa Drive intersection) is recommended as most appropriate for commercial development of a non-retail focus. As three (3) corners of this intersection are likely to develop as retail centers, it is recommended the remaining corner incorporate less-intensive commercial development. This corner is in closest proximity to the high school complex and indoor aquatic center to the north and adjacent residential neighborhoods to the northeast. It is recommended the existing A, Agricultural, zoning designation be rezoned to PCD-2 with restrictions. The restriction being that the development of this corner of the intersection incorporate some kind of recreational commercial use, mixed-use office-residential activity, public or semi-public/institutional use, or other such use or activity that can be demonstrated as having a less intensive impact on traffic patterns and surrounding land use activities and neighborhoods. It is also recommended that up to 62,000 gross square feet would be permissible for retail commercial use if planned as part of an overall development plan incorporating a mix of uses that are designed to be pedestrian-friendly. [Emphasis added]

Additional Recommendations

It is also recommended that the total allowable retail commercial square footage be limited to 440,000 gsf for the four corners of the West 6^th Street/Wakarusa Drive intersection. In the event the approved development plan for 154,000 gsf on the northwest corner of West 6^th Street and Wakarusa Drive expires or otherwise becomes null and void, the total square footage allowed at the intersection will be reduced to 420,000 gsf. A breakdown of square footage allocation is illustrated in the table below.

*Total Square Footage Allowed*	440,000gsf*	*420,000gsf+*
Southside of West 6^th Street (existing development)	224,000gsf	224,000gsf
Northwest Corner of West 6^th Street/Wakarusa Drive	154,000gsf	136,000gsf
Northeast Corner of West 6^th Street/Wakarusa Drive	62,000gsf	60,000gsf
Note: = with approved development plan on northwest corner; + = without approved plan*

Staff Finding – To be in conformance with the comprehensive and area plans, the rezoning of this portion of the property needs to have restrictions consistent with a less intensive commercial development. The permitted uses being that the development of this corner of the intersection incorporate some kind of recreational commercial use, mixed-use office-residential activity, public or semi-public/institutional use, or other such use or activity that can be demonstrated as having a less intensive impact on traffic patterns and surrounding land use activities and neighborhoods. The adopted plan for the area (An Area Plan for the Intersection Area of W. 6^th Street and Wakarusa Drive) places limitations on the amount and recommended location of commercial space.

STAFF REVIEW

The adopted plan for the area used Champion Lane right-of-way as a stopping point for the commercial zoning and as a separation between the recommended residential and commercial uses for this undeveloped area. The area plan did not envision or take into account a New Urbanism, mixed-use commercial/office/residential, approach to this property.

The mixed-use commercial/residential nature of the west half of the development plan and the proposed community theater use (which is allowed in residential subject to an approved Use Permit upon Review) provided some justification for the expansion of mixed-use commercial/office/residential into a portion of the previously zoned Planned Residential Development area on the east side of Champion Lane, zoning request [Z-03-17-05].

Attention needs to be taken in the design and approval of the revised preliminary development plan by the City Commission, to ensure that the W. 6^th Street/Wakarusa Drive Commercial Center does not become, nor have the appearance of, a commercial strip along W. 6^th Street.

The rezoning request should again be contingent upon the approval of a Preliminary Development Plan and filing of a Final Plat. The zoning use restrictions should cover the entire PCD-2 portion of Bauer Farm. No one building shall be larger than 50,000 gross square feet, and that there will be no more than 62,000 gross square feet of retail commercial space for the northeast corner of W. 6^th Street/Wakarusa Drive intersection.

The applicant is proposing use restrictions as listed in the attachments.

Staff is of the opinion that the prior conditionally approved permitted use restrictions could be modified to include allowance for the following additional uses proposed by the applicant:

Under Use Group 4 Multiple-family Residential

Multiple-family residential use (without requiring retail/office on 1^st floor with multiple-family residential on upper floor(s)).

Under Use Group 12. Retail Sales

Licensed premises.
Liquor, wine and beer sales for consumption off the premises.

Staff is also of the opinion that the restriction to a maximum of 62,000 Square Feet of Commercial Retail on the northeast corner of the intersection of W. 6^th Street and Wakarusa Drive should be upheld as required per the previously approved Area Plan for W. 6^th Street and Wakarusa Drive.

As part of condition of approval of the Bauer Farm Preliminary Development Plan, the City Commission directed that a revised Preliminary Development Plan meeting the conditions of approval be brought back before them for their review. The property has not been platted. The Preliminary Development Plan also acts as the Preliminary Plat for the property. A copy of the applicant’s proposed revised Bauer Farm Development Plan has been included in the Planning Commission’s packet for reference.

Approval of a Preliminary Development Plan.
Filing of a Final Plat for the property at the Register of Deeds Office.
No one building shall be larger than 50,000 gross square feet of space.
The permitted list of uses be included as part of the rezoning ordinance.
There will be no more than 62,000 gross square feet of retail commercial space in the PCD-2 portion of the Planned Unit Development.