24- LDC Amendment C20-2023-026 - Live Music and Creative Space Bonus Phase 2 Staff Presentation — original pdf

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Live Music Venue and Creative Space Regulatory Incentives Phase II July 2024 Council Actions Resolution No. 20220728-094:  Establish the criteria to be a Live Music Venue  Create live music venue bonus and incentive program for new and existing venues  Initiate changes to Land Development Code Section 25 Resolution No. 20220901-089:  Develop and adopt clear creative space land use definitions  Create creative space bonus and incentive program for new and existing venues  Create new code elements to "Diversify, sustain, and cultivate the city's culture, music, and arts communities and industries“  Criteria for designation of Arts Districts  Initiate changes to Land Development Code Section 25 Resolution No. 20230921-102:  Develop LDC amendments with incentives for cultural space preservation and creation by Spring 2024  Bring an ordinance establishing a Cultural District Overlay initiated in Resolution No. 20220728-094 and Resolution No. 20220901-089 by Spring 2024 Guidance from Resolutions Resolution No. 20220728-094:  Expanded facilitation of affordable commercial space... in new construction  Prioritization of music venue or creative space as a community benefit for density bonuses or other overlays within the Red River Cultural District, East 6th Street Entertainment District, and Warehouse Entertainment District  Fee Waivers  Modified Parking requirements Resolution No. 20220901-089:  “Increase in floor to area ratio (FAR) in square footage or other appropriate development incentive related to what is provided for the dedicated creative space"  "Prioritization of creative space as a city-wide community benefit as it relates to density bonus programs, Planned Unit Development (PUD) zoning, or within other regulatory plans  Increased flexibility in development regulations and opportunities for modification of policies, rules, codes, or design standards  Permit accessory use as a theater, art gallery, or art workshop in all commercial and industrial/warehousing zoning districts  Fee waivers  Modified parking requirements  Expedited permitting process Goals and Timeline Cultural District Milestones  Arts Commission: March 18 Goals  Develop a citywide paper district that is not mapped; no change to a property’s zoning will be made through initial district adoption  Focus on a “district” approach similar to Historic Districts, with minimum size requirements  After adoption, owners of eligible properties may then request a rezoning to incorporate Creative District code string  Initiate a subdistrict of the Downtown Density Bonus for Red River  Codes and Ordinances Joint Committee (COJC): March 20  Recommended unanimously by the Codes and Ordinances Joint Committee with Commissioners Greenberg and Azhar absentMusic Commission: April 1  City Council Set Date: May 2  Planning Commission Hearing: July 9  Council Hearing: July 18 Framework Process Factors space stakeholders among stakeholders  Creative District Combining district should be driven by creative  Applications should require prior coordination and organizing  Should be a tool for creative space districts and organizations, not imposed on a neighborhood "top-down"  Establishment should proceed according to normal processes with adequate opportunities for community engagement and feedback  Focus will be on promoting new and preserving existing creative spaces Creative Spaces: performance venue or cocktail lounge operating as a live music venue; art gallery, art workshop, museum; theater; art, dance, or studios for performing art, music, or visual art; other related uses as may be approved by Director Tools for the Creative District Combining District District and Gatekeeper Requirements  Ground Floor Creative Space  Along at least 30 percent of the building frontage along the principal street, the building must be reserved for affordable creative space uses in ground-floor spaces  At least 25 percent of ground floor gross leasable area shall be dedicated to affordable creative space through restrictive covenants  Creative Space Preservation and Relocation Benefits  Must comply with protections consistent with Existing Non-Residential Space provisions of 4-18-31  Applies to Creative Spaces in operation for 12 months or longer  Requirements to provide notice and relocation benefits  Redevelop the site to replace all existing non-residential spaces with non-residential spaces of comparable size  Grant a creative space operator operating for at least 12 months the option to lease an affordable creative space of comparable size following the completion of redevelopment Creative Space Development Bonus Creative Space Development Bonus Allow development bonuses in return for provision of affordable creative space, at a 4:1 ratio of total bonus area to affordable creative space area, including the following options:  50% increase in base FAR  30 feet additional height from the base zone up to a maximum of 90 ft  Waive minimum site area requirements  Compatibility criteria modeled on DB90 Affordable space requirements:  50% of retail commercial real estate market rate; or  Stabilized lease to revenue ratio based on industry average  5% annual rent escalation cap  Minimum 10-year affordability period (consistent with other non-residential compliance terms) Fee-in-Lieu (FIL) Option:  FIL option to go toward preserving existing creative spaces in the district  Funds can be administered through a dedicated fund administered by the City or partner organization Additional Incentive Programs Place-Based Enhancement Program Direction from Ordinance No. 20180830-058 to develop an incentive program focused on the following:  Commercial affordability for tenants of commercial space with … particular focus on small, local, heritage businesses, non-profits, cooperatives, and the creative sector​  Financial challenges faced by owners of commercial spaces by providing access to capital/financing to deliver community benefits, such as affordable and public spaces, creative spaces, new goods and services, and to preserve neighborhood identity​  Specific market needs, such as the delivery of goods, services and transportation solutions to underinvested areas that yield benefits to the community beyond local tax base contribution​ Program, if adopted, will complement Creative District density bonus:  Economic and Cultural Districts, including Creative District density bonus areas, are geographic targets  Program will offer financial incentives for affordable leases for creative spaces, for new development of creative spaces, and potentially for creative space preservation  Incentives can be layered with Creative District overlay density bonuses Red River Cultural District Red River Cultural District Red River Cultural District  Resolution No. 20220728-094: Prioritize density bonus or other overlays for the  September 21, 2023, City Council Palm District plan direction: “return an ordinance for Council approval establishing a Cultural District Overlay" and expedite the establishment of a regulatory overlay for the Red River Cultural District specifically  Distinct from Creative District combining district because it falls under the Downtown Density Bonus density bonus district already  Distinct constraints because of Capitol View Corridors, especially those tied to I- 35 Staff Recommendation  Initiate a new DDB subdistrict concurrent with establishing the Creative District Combining District; calibrate after initation to ensure strong and appropriate language and elements Questions