Memorandum

City of Lawrence

Planning & Development Services

 

TO:

Thomas M. Markus, City Manager

FROM:

Planning Staff

DATE:

June 20, 2017

RE:

East Lawrence Rezoning Update

 

 

On June 6, 2017, the City Commission approved the East Lawrence Rezonings (Z-17-00098, Z-17-00099A, Z-17-00099B, Z-17-00100, Z-17-00101, Z-17-00102, Z-17-00103, Z-17-00104) and adopted Ordinances (9359, 9360, 9366, 9361, 9362, 9363, 9364, 9365) on first reading.

 

Based on the discussion by the City Commission and the public, staff is providing further information and clarification regarding density, rental licensing, and gentrification.

 

Density

Figure 1 below provides a comparison of the residential density, based on the U.S. Census, of the East Lawrence neighborhood to the neighborhoods surrounding downtown, which include Barker, Brook Creek, Old West Lawrence, and Pinckney. In this sample, the Brook Creek neighborhood has the lowest population density with 6.5 people per acre, and Old West Lawrence has the highest with 13.8 people per acre. The East Lawrence neighborhood has 11.4 people per acre. This data represents the entire East Lawrence neighborhood and is not specific to the subject area north of E 9th Street.

Figure 1. Based on U.S. Census, the map shows the population densities of the East Lawrence and surrounding neighborhoods.

 

Rental License Clarification

The East Lawrence rezoning staff report and presentation stated that there are 32 active rental licenses in the subject area associated with Detached Dwellings and as such, these properties would be subject to a lower occupancy limit. However, this information did not take into account that the properties currently zoned RSO (Single-Dwelling Residential) District and CS (Commercial Strip) District would not see a change in occupancy limits. The occupancy limit permitted in the RSO District, and for properties containing a Detached Dwelling in the CS District, is a maximum of 3 unrelated persons. This is the same occupancy limit of the RS5 (Single-Dwelling Residential) District. Of the 32 active rental license associated with Detached Dwellings, 26 properties are currently zoned RM24 (Multi-Dwelling Residential) District, which permits a maximum occupancy limit of 4 unrelated person. These 26 properties would be subject to a lower occupancy limit if rezoned to the RS District.

 

Gentrification

To assess if gentrification has occurred in the East Lawrence neighborhood, staff applied the methodologies found in Governing Magazine (http://www.governing.com/gov-data/gentrification-report-methodology.html). To perform the two-part test, Census Tract 2 of the U.S. Census was used (figure 2). This tract includes the East Lawrence neighborhood, as well as the Brook Creek neighborhood and approximately half of the Barker neighborhood.

 

Figure 2. Census Tract 2 outlined in blue.

 

 

The results of the Eligibility Test and the Gentrified Test are provided below.

 

Eligibility Test

  1. “The tract had a population of at least 500 residents at the beginning and end of a decade and was located within a central city.”

 

  1. “The tract’s median household income was in the bottom 40th percentile when compared to all tracts within its metro area at the beginning of the decade.”

 

  1. “The tract’s median home value was in the bottom 40th percentile when compared to all tracts within its metro area at the beginning of the decade.”

 

 

Gentrified Test

  1. “An increase in a tract's educational attainment, as measured by the percentage of residents age 25 and over holding bachelor’s degrees, was in the top third percentile of all tracts within a metro area.”

 

  1. “A tract’s median home value increased when adjusted for inflation.”

 

  1. “The percentage increase in a tract’s inflation-adjusted median home value was in the top third percentile of all tracts within a metro area.”

 

Based on these tests, Census Tract 2 meets the gentrification eligibility criteria, but does not meet the criteria signifying gentrification over a recent period of time. Between the years of 2010-2015, gentrification did not occur in the East Lawrence neighborhood. The methodology does not, however, predict if future gentrification will occur if this rezoning effort is approved. Because the rezoning only attempts to match zoning to current uses, one could conclude that gentrification will not occur based on this rezoning alone. Other factors will need to affect the neighborhood to spur gentrification if it is to occur.