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HomeMy WebLinkAbout16. 12-166 MARCH 27, 2012 APRIL 10, 2012 12-116 12-166 ORDINANCE FIRST READING SECOND READING (CARRIED___5-0_____LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE REZONING PROPERTIES GENERALLY LOCATED NORTH OF CUSTER AVENUE, SOUTH OF NEVADA AVENUE, EAST OF MOUNT VERNON STREET & WEST OF BROAD STREET FROM M-2 CENTRAL INDUSTRIAL TO C-1 NEIGHBORHOOD BUSINESSWITHAPLANNED DEVELOPMENT OVERLAY AND M-1 LIGHT INDUSTRIAL WITH A PLANNED DEVELOPMENT OVERLAY INITIATED BY: COMMUNITY DEVELOPMENT PLAN COMMISSION RECOMMENDATION: Approved A GENERAL ORDINANCE OF THE CITY OF OSHKOSH AMENDING SECTION 30-16 (B) OF THE OSHKOSH MUNICIPAL CODE PERTAINING TO ZONING DISTRICTS. The Common Council of the City of Oshkosh do ordain as follows: SECTION 1. That Section 30-16(B) of the Oshkosh Municipal Code pertaining to Zoning Districts and the map therein described is hereby amended by changing the district character of the following described area from M-2 Central Industrial to C-1 Neighborhood Business with a Planned Development Overlay and M-1 Light Industrial with a Planned Development Overlay From M-2 to C-1 PD: Lots 1 to 13, Block 3; also Lots 2 to 6, Block 4; also vacated Eastman St. south of the south line of E. Nevada St. and north of the north line of E. Custer St.; all in Pleasant Home Land Co. 1st Addition, 15th Ward, City of Oshkosh, Winnebago County, Wisconsin plus public right-of-way abutting said lots extending to the centerlines of E. Custer Ave., Grand St., E. Nevada Ave., and Mt. Vernon Street. From M-2 to M-1 PD: Lots 7 to 14, Block 4, Pleasant Home Land Co. 1st Addition, 15th Ward, City of Oshkosh, Winnebago County, Wisconsin plus public right-of-way abutting said lots extending to the centerlines of E. Custer Ave., Broad St., and E. Nevada Avenue. SECTION 2. This Ordinance shall be in full force and effect from and after its passage and publication. MARCH 27, 2012 APRIL 10, 2012 12-116 12-166 ORDINANCE FIRST READING SECOND READING CONT'D SECTION 3. Publication Notice. Please take notice that the City of Oshkosh enacted Ordinance #12-166 APPROVE REZONING PROPERTIES GENERALLY LOCATED NORTH OF CUSTER AVENUE, SOUTH OF NEVADA AVENUE, EAST OF MT. VERNON STREET & WEST OF BROAD STREET FROM M-2 CENTRAL INDUSTRIAL TO C-1 NEIGHBORHOOD BUSINESS WITH A PLANNED DEVELOPMENT OVERLAY AND M-1 LIGHT INDUSTRIAL WITH A PLANNED DEVELOPMENT OVERLAY on April 10, 2012. The full text of the Ordinance may be obtained at the Office of the City Clerk, 215 Church Avenue and on the City's website at www.ci.oshkosh.wi.us. Clerk's phone: (920) 236-5011. OJHKOJH ON THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Darryn Burich /h Director of Planning Services/ DATE: April 5,2012 RE: Approve Rezoning Properties Generally Located North of Custer Avenue, South of Nevada Avenue, East of Mt. Vernon Street&West of Broad Street from M-2 Central Industrial to C-1 Neighborhood Business with a Planned Development Overlay and M-1 Light Industrial with a Planned Development Overlay(Plan Commission recommends approval) BACKGROUND Zoning for this area was discussed at previous workshops and was the subject of an official zone change request from M-2 to R-2 for the residential dwellings at 1406 and 1407 Grand Street that was subsequently denied by both the Plan Commission and Common Council as being contrary to the Comprehensive Plan. The subject zone change area is located in a broader industrial area characterized by a mixture of light industrial/storage and commercial/retail uses to the north and residential uses to the east, west and south. The area historically contained general manufacturing uses that have given way to lighter industrial uses such as contractors' yards and storage other than the two nonconforming residential uses. The likelihood of this area becoming heavy industrial again seems remote given the variety of property owners and uses and other better situated industrial lands in the community. ANALYSIS The current zoning of M-2 Central Industrial District is one of the least restrictive districts with virtually no design or setback standards which can be problematic when adjacent to residential uses. The M-1 Light Industrial District allows similar uses but does have some setback and landscaping requirements for new development and would accommodate all of the existing uses other than the two residential dwellings. A Planned Development Overlay district applied to the subject area would allow some flexibility in the underlying base standards with final development review coming before the Plan Commission and Common Council. The C-1 Neighborhood Business District is a mixed-use commercial/residential district that has some development standards but not to the extent of the C-2 or C-3 Districts and allows all M-1 Light Industrial uses through conditional use permit. The Plan Commission was presented seven various zone change options for consideration for the subject area including changing zoning to either C-1PD or M-1PD, a combination of both, or leaving the existing zoning designation as is. Staff examined the subject area in context with the surrounding neighborhoods and feels that the proposed zoning acts as the best transitional zoning district to buffer the heavier manufacturing areas to the north from the residential neighborhoods to the south and the railroad line to the east. The C-1 zone is a flexible zoning district offering property owners more land use potential than the existing M-2 district by adding residential as a permitted or conforming use within the district and imposing some landscaping and setback standards to upgrade development in the neighborhood as new development occurs, whereas the existing M-2 district has little or no standards. Changing the zoning of just the two residential properties in this case could be classified as "spot zoning"and would impart differing zoning district requirements on other properties within the block, which the C-1 zoning would not. Spot zoning occurs when a zoning ordinance is amended to zone a relatively small area for uses significantly different from those allowed in the surrounding area to favor the owner of a particular piece of property. In this case, even though the block to south is zoned R-2,the majority of the abutting lands around the two residential properties are zoned M-2 and thus a spot zone. Further,the original residential zoning applicant's request for the zone change to residential is motivated in large part, understandingly,to allow for easier sale of the property because the secondary mortgage market has some difficulty financing residential uses (regardless of the conforming status)meaning a loan on the property will most likely be a local lender that retains the loan in-house. The issue of financing is more problematic if the structure is"nonconforming"and thus why staff feels the move to the commercial zone helps meet some of the applicant's needs while not compromising good land use planning and zoning practices. Staff has met with the residential property owner and her realtor to discuss some of their stated concerns at previous Council meetings and offered any assistance relative to alleviating any concerns potential lenders or appraisers would have about the commercial zone status including writing the rebuild letters and personally discussing the zoning and land use situation with them. FISCAL IMPACT None anticipated. RECOMMENDATION The Plan Commission approved of this request at its March 6, 2012 meeting. Approved, e(4 „.„e City Manager I IW z ` V i ` -ti .L 111.1 t 1 1111111 N ( I > I ) I l I ZfEI 4Cl ZEL 1 W, I'M V . I bEb'L Q L a) W (ap -co ° a) p f o 1S �O2NOW ZC m CC ) ._O a) [ SEbL N� EZbL L6ILbb EL / tlfi6004b sZEt 6ICL flfl LOEL OfI 'Z O Q . a s o E .-•a ,a) 0 a) L C p - Cr a) m a) 0) Cl) 3 = I I Z Z (...) .-71 ° U) F— \ OM eon 'bfeL ezEL rat stet soEL zoEt KZ/ s— M �', , ,• N CO 1 � UUU � � � � � 1 ( 1S_CIV 2:8 I ! I I I i I ill l I I i N-Qkv_O.a° y.d "y _ ' i t t EOVi•-' / sCC em. SCI LZCI. LLCL soft CDC LEZI x �.} 1 • [ �t � Zy 3 r I i ri a ▪ - - - ∎ 1 I � L < {ji 1_. t- m I 0 ,,,,. ;''',1:,,�,t '2,,i: 11.; pr^` Y].Y „, ;i�w I l bECL BZEI bZfL DZEI Yl£l OL£l Zoc N 4EZl • is a.N1 O � j _ . '' " — -� LEEL O tfEL LZEI 6LCl SIEt LLEI £OEL I S£ZL L �y II Ng 1 � :1IW CC N R c� ap_ tlOZEl V9C ;� �� bEEI DEf/ 9ZEL OZEL SLfI ELEL ZOfL bEZI W Wi - a ff < ,? x s J �_ 0.„ Q Cali/[ 1C IA 1 ( l�Nb V�Il �= 1 W 1 sEZL 1 1> s y 5- ff sZEt '' 5 `n ,L 1 I t x t Q[ I� 9 tlT.) III��;; . ` At T I I ai l O y`\ I f 'E 1 ww n ^ � vs a) • -Z04k i 1320 ;14.11A: bE�L lES N�OiN!2'� �:ll'�I LL(1)� 0 N r�� i illibi rte^ ZDBL 1 is Nos219dA r v J IS_NOS_2�add.3r 1.0 GM 6L6L 0101 r I ,cc cc. LZfI LZEI iiiiiiiiI eFr: .1f V ; I ( beer IO . , Nr ITEM: ZONE CHANGE FOR TWO BLOCK AREA BOUNDED BY MT. VERNON STREET ON THE EAST; NEVADA AVENUE ON THE NORTH; BROAD STREET ON THE WEST; AND CUSTER AVENUE ON THE SOUTH Plan Commission meeting of March 6, 2012 GENERAL INFORMATION Applicant: City Administration Property Owners: Multiple Action(s) Requested: Staff has prepared several alternative zoning scenarios for the subject area and is requesting the Plan Commission evaluate and recommend one of the options. Applicable Ordinance Provisions: The Zoning Ordinance does not establish criteria relative to appropriateness of changing zoning from one classification to another but relies on the Comprehensive Plan and good planning principles. Property Location and Background Information: Zoning for this area was discussed at previous workshops and was the subject of an official zone change request for the residential dwellings at 1406 and 1407 Grand Street that was subsequently denied by both the Plan Commission and Common Council as being contrary to the Comprehensive Plan land use plans for the area. The zone change request was to change the zoning from M-2 to R-2, which would then make the residential dwellings "permitted uses"versus being non-conforming uses in the industrial zoning district. The subject zone change area is located in a broader former industrial area that runs to the north to Murdock Avenue and to the east north of Nevada Avenue to Bowen Street. The area to the north is characterized by a mixture of general and light industrial uses, storage, and commercial/retail. The areas to the east and west are generally older residential neighborhoods. The area to the south along Custer Avenue is residential. The subject area historically contained viable manufacturing uses that have since given way to more light industrial uses characterized primarily by contractors' yards and storage. The two residential uses in the subject area actually predate zoning in the City and appear to have been nonconforming uses since zoning was adopted by the City in 1926. The ability of this area to once again become a major industrial area seems remote given the development of the City's industrial parks to the north and more convenient access to highway transportation. Light industrial uses, storage, and contractors yards would seem more prone to want to locate in these areas as has currently occurred and as evidenced in other similarly situated areas in the central city (i.e. south shore, Witzel Avenue near central garage, 20th Avenue near Pepsi plant). The residential areas to the south, east, and west will remain residential for the foreseeable future and thus the subject area has the ability to exert some influence on the quality of life in these neighborhoods, making the base zoning for the subject area an important factor for overall neighborhood stabilization efforts. The subject area could be considered a"buffer" area to those surrounding residential neighborhoods. The presence of the railroad tracks along Broad Street also exerts some influence in the neighborhood especially on those properties adjacent to the tracks. Activity along the railroad is expected to be the same or increase in the future as the railroad continues to improve facilities along the route. There are an estimated 20-25 train trips daily with the trains lengthening up to a mile. The largest property (4.88 acres) at 1402 Mount Vernon Street has been the subject of redevelopment discussions to mixed-use but to date nothing has been submitted to the City in that regard. Subject Site Existing Land Use Zoning Residential and Light Industrial and Storage M-2 Adjacent Land Use and Zoning Existing Land Uses Zoning North Industrial M-2 South Residential R-2 East Industrial M-2 West Industrial M-2 Comprehensive Plan Land Use Recommendation Use Category 10 Year Land Use Recommendation Industrial 20 Year Land Use Recommendation Industrial ANALYSIS Current Zoning The current zoning of the area is M-2 Central Industrial District which was established to help deal with older central city locations and is one of the least restrictive zoning districts with virtually no design or setback standards. The M-2 zoning district can work well when it is buffered with a transitional district, such as commercial, but in close proximity to residential uses it becomes more concerning due to there being little or no design and setback requirements. The subject area is directly adjacent to three blocks of residential uses along the south side of Custer Avenue. There are also residences to the east and west. The M-1 Light Industrial District allows similar uses to the M-2 district but does have some setback and landscaping requirements for new development. The M-1 district would accommodate all of the existing uses in the subject area as "permitted" uses except the two residential dwellings. Furthermore, all structures and uses that were conforming at the time of adoption of the Ordinance (which all are in this area, except the residential) are considered to be "conforming" and the new standards would only apply to new developments and expansions. As many of these lots are small and already intensely developed, with little or no room to expand, the impact should be minimal, if any. However, to help Item-Zane change Grand Street area 2 deal with any unforeseen future development difficulties, staff is proposing to apply the Planned Development Overlay district to the subject area that can allow some flexibility in the underlying base standards of the zoning district with final development review coming through the Plan Commission and Common Council versus the Board of Appeals. The C-1 Neighborhood Business District is a mixed-use commercial/residential district that has some development standards but not to the extent of the C-2 General Commercial District and does not provide for as intense development as the C-3 Central Commercial District with no setback standards. The district is established to preserve and permit neighborhood commercial areas and mixed use commercial/residential development. The district also allows all M-1 Light Industrial uses through conditional use permit. Zoning Options Staff has developed several zone change options for consideration that will be listed in order of staff preference (please see attached maps). Option # 1 change zoning to C-1PD and M-1PD This option allows residential uses in the C-1 area, thus removing the nonconforming status of the two residential dwellings and would provide the ability to redevelop the former Gray Marine (Lenox, Waite Grass Carpet) into a mixed-use development that could include light industrial and commercial uses. The two contractor's yards along Grand Street could be made "conforming uses"by classifying them as permitted through the Planned Development. M-1 is retained along the rail corridor recognizing the influence it has in the neighborhood. Option #2 change zoning to C-1 PD This option simply changes the entire area to C-1PD versus incorporating the M-1 in the area along the railroad tracks. There really is not a significant difference between the two zoning districts other than the M-1 has more intense setbacks and the C-1 allows residential uses. Option #3 change zoning to C-1 PD for portion of area This option would change the zoning to C-1 for the entire Gray Marine block and the majority of the block face across Grand Street. The downside is that it leaves the area along Broad Street unchanged and again with little or no landscape or design standards in this transitional area. Also as the zoning changes from less restrictive to more restrictive (M-2 to C-1), additional transitional yard standards are imposed on the less restrictive district and without the PD designation, new development would have to go through the Board of Appeals if dimensional regulations could not be met. Option #4 change zoning to C-1 PD for smaller portion of area This option would scale back the zone change to the Gray Marine block and for the parcel across Grand Street at 1406 Grand Street. The positive feature is that it makes the residential uses conforming and allows for mixed use residential development of the Gray Marine building. The downside is that it doesn't touch the rest of the zoning in this transitional area and the C-1 will impose differing setback requirements along Grand Street requiring new development to potentially have to go through the Board of Appeals. Again, by not changing the zoning to at least an M-1 zone, there are little or no design and setback standards. Item-Zone change Grand Street area 3 Option # 5 change zoning to C-1 PD for only the Gray Marine block This option would only change the zoning for the Gray Marine block and leave the property at 1406 Grand Street as nonconforming. As stated earlier, this is a transitional or buffer area between the heavier industrial activity to the north and residential area to the south. By leaving half the area in M-2 zoning it does nothing to help buffer or positively impact the residential areas to the south. Option # 6 change the zoning of the two residential properties to C-1 PD This option changes only the zoning of the two residential properties to C-1PD to make them conforming uses and does nothing to impact the rest of the area. It is really just spot zoning and poor planning for this area but does achieve the original objective of the applicant's zone change request. Option # 7 Status Quo-No Zone Change This option retains the status quo for the area by not changing the zoning. The residential uses remain non-conforming, the Gray Marine building cannot redevelop to a mixed-use site, and any redevelopment in the area will not be required to provide any landscape or setbacks and thus not positively contributing to the stabilization of the residential areas around the block. RECOMMENDATION Staff feels the best option for the area is Option#1 as it allows the residential uses to remain, allows for mixed-use, commercial or light industrial redevelopment of the area, can ensure that no nonconformities are created, and can use the PD to deal with any future developments and development difficulties imposed by the new zoning. It also helps to transform this two block area into more of a transitional area between the industrial to the north and residential to the south. The Plan Commission approved of Option#1 for the zone change as requested. The following is the Plan Commission's discussion on this item. Zoning for this area was discussed at previous workshops and was the subject of an official zone change request for the residential dwellings at 1406 and 1407 Grand Street that was subsequently denied by both the Plan Commission and Common Council as being contrary to the Comprehensive Plan land use plans for the area. The zone change request was to change the zoning from M-2 to R-2, which would then make the residential dwellings "permitted uses"versus being non-conforming uses in the industrial zoning district. The subject area historically contained viable manufacturing uses that have since given way to more light industrial uses such as contractors' yards and storage. Staff is presenting seven different options to accommodate the various uses in this area. Mr. Bunch presented the item and reviewed the site and surrounding area as well as the zoning and land use in said area. He explained that out of the various zoning scenarios offered, staff's preference was Option#1 to change the block to the west and a portion of the block to the east to C-1 Neighborhood Business District with a Planned Development Overlay and change the remaining portion of the block to the east along the railroad tracks to M-1 Light Industrial District with a Planned Development Overlay. This option would accommodate all the existing uses in the area including the two residential homes. He also reviewed the other options presented in the staff report for consideration. Ms. Propp questioned why the area designated to be changed to M-1 PD was not extended down to the residential lot at 1406 Grand Street. Item-Zone change Grand Street area 4 Mr. Bunch responded that the City was looking to have symmetry with this zone change and, as proposed, it creates a buffer area between the industrial and residential uses. Light industrial uses are also allowed in the C-1 zoning district. Bob McGuire, First Weber Real Estate, stated that he was listing the home at 1407 Grand Street and the ability to sell it with the M-2 zoning designation was impossible as buyers were not able to obtain financing for the purchase. He further stated that what is being proposed would help but it will still put some hardship on the buyer. The home is a 1920's era structure and is in excellent condition and would be most likely a first-time home buyer's opportunity. The C-1 designation would require the City to issue a rebuild letter at the time of sale. Mr. Bunch indicated that the City would not have any issues with this as the home could be rebuilt on the site with a C-1 zoning classification as it is a permitted use in this district. Mr. McGuire stated that a letter from the appraiser would also be necessary indicating that the residential use was the highest and best use of the land. Considering the amount of other residential uses in the area, he did not see any reason to make selling the property more difficult for the owners. Lola Schroeder, owner of the property at 1407 Grand Street, discussed the Fair Acres site recently being developed and the base standard modifications allowed. She felt it was unfair that the City would give allowances to this developer but would not permit any allowances to her when it comes to the desired zoning classification she seeks. Mr.Nollenberger commented that since the original request to change the zoning from M-2 to R-2 for the residential properties was voted down by both the Plan Commission and Common Council, he felt that Option#1 was the best choice. Mr. Cummings commented that the banking regulations have caused the change in the industry and these changes in regulations are taking place on a daily basis and he felt we must do what is best for the City when considering the zone change for this area. Mr. Bowen stated that we need to reference the Comprehensive Plan and although there is no way to predict what will happen in this area in the future, there is no perfect solution for every property owner in this area. Option#1 would accommodate the petitioner and respects the Comprehensive Plan as C- 1PD allows for existing uses as permitted uses. Ms. Propp inquired what the outcome of the neighborhood meeting was as she was unable to attend. Mr. Burich responded that only three property owners attended and two were the residential property owners requesting the zone change with the remaining one being the party with the storage and workshop use. The zoning Option #1 was the best choice as it permitted all current uses in the area. Property owners were also notified of the Plan Commission meeting today. Mr. Thorns questioned if local zoning standards have allowed C-1 in other residential areas of the city and if the zoning letter mentioned by Mr. McGuire would be obtainable. Mr. Burich responded affirmatively to both inquiries. Item-Zone change Grand Street area 5 Ms. Propp stated that she would support Option#1 for the zone change and questioned if the M-1 PD zoning designation would extend to the center of the railroad tracks. Mr. Burich responded affirmatively. Motion by Nollenberger to approve the zone change Option #1 for the two block area bounded by Mt. Vernon Street on the east, Nevada Avenue on the north; Broad Street on the west; and Custer Avenue on the south from M-2 to C-1 PD and M-1 PD. Seconded by Cummings. Motion carried 8-0. Item-Zone change Grand Street area 6 W IN_ • I I I I ,,, v ca i ! 1 Iw 15 '..,,c5,..3 o � I � I w;• U O U V _U ! I V4E4L • I ZfEI Pl. ZDEL i 1 %ZL Can) '�„ +�+ = O 909E 8Z4L 9291 Blbl bl9t 90Y1 / I _ > a 65 O U J (� C Ca p o ° D _ �_ 1S /02�NOW �z r---13 ci) m > N N - LLbL Clbl 60Y1 \ I eceL LZC SCI filet f101 LOCI COEL �W O 0 c0 b SC4L EZbL 6141 tl606 N �` o �, �_, 3 I i iw o = W 1 ' c \ I I. ` I iL., Z m T .0 1{It, IL 0 > Ln ! 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