B5-1: Parkland Dedication Requirements for Commercial Developments — original pdf

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Briefing on: Parkland Dedication Requirements for Commercial Developments Parks and Recreation Board April 25, 2022 Paul Books, Planner III; Robynne Heymans, Planner Senior; Thomas Rowlinson, Principal Planner Randy Scott, Program Manager Austin Parks and Recreation Department Context - Chronology • On February 25, 2020, the Parks and Recreation Board passed Recommendation 20200225-B3, which included the provision that commercial developments be subject to parkland dedication requirements. February 2020 • On March 28, 2022, The Parks and Recreation Board reaffirmed its support to require parkland dedication for office, industrial, and commercial developments in Recommendation 20220328-B5. March 2022 • On April 7, 2022, City Council passed Resolution 20220407-042 directing City Staff to require parkland dedication for office, industrial and commercial developments. April 2022 Overview • Parkland dedication substantially advances a public interest in promoting the health, safety, and general welfare of Austinites. • The need for parkland is supported by the City Charter, the Imagine Austin Comprehensive Plan, the PARD Long Range Plan, and Council Resolution 20091119-068 (establishing that parks be within walking distance of all Austinites). • Creating a new parkland dedication ordinance for office, retail, and industrial developments would better reflect the impacts of new development to the City's parks system. It would create opportunities for greenbelt and trail connections that are lost under today's requirements, and better serve Austin's growing workforce with recreational opportunities. 3 Applicability – Essential Nexus • Regulation must be related "both in nature and extent to the impact of a proposed development" (essential nexus, established in U.S. Supreme Court decision Nollan v. California Coastal Commission, 1987) • Growth in the commercial sector leads to increases in the City’s overall population and workforce, both users of the City’s parks system. • The National Recreation and Park Association has documented the role parks play in company locations and workforce growth. • By including commercial development into parkland dedication, the City would be able to better provide proportionate recreation services to the workforce near their places of employment. 4 Applicability – Rough Proportionality • Parkland level of service must • The estimated workforce occupying a account for the impact the workforce has on parks. The additional workforce that enters Austin affects the level of service goal. To maintain a consistent amount of parkland for Austin's 'service population' (residents + commuter workforce) new developments would need to provide 6.8 acres of new parkland per 1,000 people. new development thus sets the parkland level of service. • The estimated workforce is then discounted by occupancy rates and hours of operation to better reflect the potential park usage. Chart shows number of: Non-residents commuting into Austin for work, Austin residents working in Austin, Austin residents working outside of Austin. 5 Proposed Use Categories THREE COMMERCIAL USE CATEGORIES • Office: Includes but not limited to general office use, co-working spaces, and medical offices. • Retail: Includes but not limited to restaurants, retail spaces, gyms, coffee shops, bars, food service spaces, supermarket, grocery store, hardware store, bank, entertainment venues, print and copy services. • Industrial: Includes but not limited to industrial buildings, warehouse, manufacturing, storage facilities. Exempt: 501c3 nonprofits, governmental bodies, schools, daycares, and convalescent living. 6 Proposed Formula Required parkland = 6.8 acres X Functional Population 1,000 people • 6.8 acres equals the established parks level of service for the total service population (residents + commuter workforce), divided by the amount of parkland (not including metro and district parks). • Service Population = 1.041 million residents1 + 451k commuter workforce2 • Functional Population is the estimated workforce of a new development discounted by their relative opportunity to access parkland, representing the full-time equivalent population of new development • Functional Population = SF per Employee X Occupancy Rate X Operation Time Sources: 1. City of Austin Demographer 2. U.S. Census OnTheMap 7 Proposed Functional Population Office: 300 sq ft / person1 X occupancy rate for use (92 percent)2 X operation time (23.8 percent) Retail: 550 sq ft / person1 X occupancy rate for use (95 percent)3 X operation time (37.5 percent) Industrial: 2,500 sq ft / person1 X occupancy rate for use (94 percent)2 X operation time (71.0 percent) Sources: 1. Employee density based on conservative estimates by the U.S. Green Building Council 2. Austin area occupancy rates for office and industrial derived from the Chamber of Commerce 'Austin Area Profile' reflecting occupancy by use in Q2 2021 3. Retail occupancy based on NAI Partners report published in Q2 2021 8 Example of Application - Office Downtown Office Hypothetical ¼- acre park Total SF SF/Employee Occupancy 665,000 A 300 B 92% C Operation Hours Functional Population 23.8% 485.36 D Formula = (A/B) * C * D Fee-In-Lieu $1,195,673 Development Fee $121,825.69 Formula = Functional Population x $2,463.47 Formula = Functional Population x $251.00 Land Owed 3.30 acres Formula = (Functional Population/1000) x 6.8 acres 15% Land Cap 0.26 Urban Core Land Dedication Limit Figures are approximate 9 Example of Application - Retail Corridor Retail Hypothetical Hypothetical park Total SF SF/Employee Occupancy 50,000 A 550 B 95% C Operation Hours 37.5% Functional Population 32.39 D Formula = (A/B) x C x D Land Owed 0.22 acres Fee-In-Lieu $79,783 Development Fee $8,128.98 Formula = (Functional Population/1000) x 6.8 acres Formula = Functional Population x $2,463.47 Formula = Functional Population x $251.00 Figures are approximate Greenway connection to park 10 Example of Application - Industrial Suburban Warehouse Hypothetical Continuation of existing greenbelt Total SF SF/Employee Occupancy 200,000 2,500 94% C A B D Formula = (A/B) x C x D Operation Hours Functional Population 71.0% 53.39 Land Owed 0.36 acres Fee-In-Lieu $131,530 Development Fee $13,401.39 Formula = (Functional Population/1000) x 6.8 acres Formula = Functional Population x $2,463.47 Formula = Functional Population x $251.00 Figures are approximate Improved connectivity to neighborhood 11 Example of Application - Mixed Use Infill Office and Multifamily Hypothetical Future connection Total SF SF/Employee Occupancy Operation Hours Functional Population 136,086 A 300 B 92% C 23.8% 99.32 D Formula = (A/B) x C x D Commercial Land Owed 0.68 acres Formula = (Functional Population/1000) x 6.8 acres Commercial Fee-In-Lieu $244,683 Commercial Development Fee $24,930.48 Formula = Functional Population x $2,463.47 Formula = Functional Population x $251.00 Total Units SMART Units Acres Units/Acre 309 0 3.88 79.64 Residential Land Owed 4.94 acres Formula = (Total Units * 1.7 * 9.4) / 1,000 Figures are approximate Residential Fee-In-Lieu $899,681 Residential Development Fee $162,685 Formula = + Units * $2,912.17 Formula = Units x $526.49 15% Cap 0.58 Urban Core Land Dedication Limit Off-road connection to S Lamar Continuation of greenbelt 12 Comparison Cities • Several other U.S. cities have enacted parkland dedication requirements or parks impact fees for new commercial developments: • In Texas, there are examples of cities with parkland dedication and fee ordinances, notably Colleyville, El Paso, and Hutto. • Other cities in California measure parks impacts for new commercial requirements and require an impact fee based on maintaining a consistent level of service. • Atlanta, Georgia, introduced commercial parkland impact fees in 1993 and established different fee rates for different commercial uses. 13 Next Steps Public Engagement and Outreach will include: • Website with all relevant material • Online survey • Roundtable discussions with key stakeholders • Social media outreach • Public meetings: Parks & Recreation Board, Planning Commission, Codes & Ordinances Joint Subcommittee, and City Council 14 Thank you If you have any questions, please contact: Randy Scott, Parkland Acquisition/PLD Program Manager, randy.scott@austintexas.gov Robynne Heymans, Senior Planner, robynne.heymans@austintexas.gov Paul Books, Planner III, paul.books@austintexas.gov Thomas Rowlinson, Principal Planner, thomas.rowlinson@austintexas.gov 15