Item2_RED_RIVER_CULTURAL_DISTRICT_CREATIVE_SUBDISTRICT_March2024_COJC — original pdf

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The purpose of the Red River Cultural District (RRCD) Crea�ve Subdistrict district is to create a subdistrict in the Downtown Density District and to provide voluntary development bonuses in return for providing affordable commercial space in new development or contribu�ng to a fund for preserva�on of crea�ve space in the crea�ve subdistrict. RED RIVER CULTURAL DISTRICT CREATIVE SUBDISTRICT PURPOSE PROPOSED ZONING CHANGES CHANGES TO DEFINITIONS/TERMINOLOGY CREATIVE SPACE means a site that includes one or more of the following occupancies: Art Gallery; Art Workshop; Cocktail Lounge (note: intent is only for existing preservation purposes, if a cocktail lounge is operating as a performance venue); Performance Venue; Personal Improvement Services; Theater; • • • • • • • Other related uses as approved by the Director. EXISTING CREATIVE SPACE means a site that includes one or more CREATIVE SPACE occupancies that has been opera�ng for at least 12 months. NON-RESIDENTIAL SPACE means CREATIVE SPACE for the purpose of this sec�on. 1) A proposed development is eligible for this program if: ELIGIBILITY Its zoning includes the crea�ve district overlay zoning string; a. b. Along at least 65 percent of the building frontage along the principal street, the building must be reserved for affordable crea�ve space uses in ground-floor spaces; It includes at least 50 percent of ground floor gross leasable area dedicated to affordable crea�ve space through restric�ve covenants; and, It complies with protec�ons consistent with Exis�ng Non-Residen�al Space provisions of 4-18-31. c. d. DRAFT2) An applicant may pay a fee-in-lieu of on-site affordable crea�ve space if: a. the fee-in-lieu of on-site affordable crea�ve space is sufficient to construct or preserve an equivalent gross leasable area that would have been required on-site; b. the crea�ve space receiving the fee-in-lieu is located in the same crea�ve district as the site genera�ng the fee-in-lieu; and, c. the director authorizes the applicant to pay a fee-in-lieu. AFFORDABILITY REQUIREMENTS 1) A development that leases space to a crea�ve space must comply with the following minimum requirements: a. Rent for the crea�ve space or spaces that contribute to the bonus program must be the lesser of 50% of average retail space rent for the City of Aus�n, or a fixed ra�o of annual revenues considered typical of and sustainable for the type of crea�ve space as approved by the Director; and b. Year-over-year rent escala�on may not exceed 5% for any crea�ve space tenant. 2) The minimum affordability period for a development is 10 years following the issuance of the last cer�ficate of occupancy required for the qualifying development. 3) If a development is owned by its crea�ve space operator, affordability provisions apply: a. For any of the crea�ve space owner-operator’s crea�ve space tenants; b. If the crea�ve space property is leased any �me during the 10 year term. 4) If the property is sold within 10 years of receiving cer�fica�on through this division, affordability provisions will be required to complete 5) In a mul�-phased qualifying development, the director may begin the minimum affordability period upon the issuance of the last the 10 year term. cer�ficate of occupancy for each phase. 6) If a fee-in-lieu is used toward preserving an exis�ng crea�ve space in the same crea�ve district, and if the preserved crea�ve space is not owned by its operator, then the minimum affordability period for the preserved space is 40 years. 7) If a fee-in-lieu is used toward preserving an exis�ng crea�ve space in the same crea�ve district, and if the preserved crea�ve space is owned by its operator, affordability provisions apply: a. For any of the crea�ve space owner-operator’s crea�ve space tenants; b. If the crea�ve space property is leased any �me during the 10 year term. 8) If a fee-in-lieu is used toward preserving an exis�ng crea�ve space in the same crea�ve district, the director may modify the minimum affordability period in excep�onal cases to prevent displacement of the crea�ve space. BONUSES DRAFT1) A project may achieve bonus area by providing on-site crea�ve space uses within the project, including performance venues and live music venues, provided that for every four square feet of bonused floor area, an amount of space equivalent to one square foot of such bonused floor area shall be used for a crea�ve space use. 2) The project may achieve bonus area by paving a development bonus fee at the dollar per square foot amount set by ordinance, provided that the fee-in-lieu of on-site affordable crea�ve space is sufficient to construct or preserve an equivalent gross leasable area that would have been required on-site. The fee will be paid into a preserva�on fund to be determined by the Director and used to support preserva�on of exis�ng crea�ve spaces in the RRCD crea�ve subdistrict. 3) In the RRCD Crea�ve Subdistrict, 50 percent of all bonus area must be achieved through the provision of affordable crea�ve space or a fee-in-lieu equivalent, while the remaining bonus area will comply with the Downtown Density Bonus gatekeeper requirement that 50 percent be provided for affordable housing. a. Affordable housing affirma�vely marketed to and at affordability levels appropriate to musicians, ar�sts, and service workers in Red River Cultural District Crea�ve Subdistrict is encouraged. DRAFT