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

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C20-2023-026 ORDINANCE AMENDMENT REVIEW SHEET Amendment: C20-2023-026 Live Music Venue and Creative Space Bonus Phase 2 Description: Amendments to Title 25 of the City Code to create a new Creative District combining district with provisions for creative space and music venue preservation, modified site requirements, and density bonuses for affordable creative space. Background: Initiated by City Council Resolutions 20220728-094 and 20220901-089, and reaffirmed by City Council Resolutions On July 28, 2022, the City Council adopted Resolution No. 20220728-094 initiating changes to establish the criteria to be a Live Music Venue to and support the creation of a live music venue bonus and incentive program for new and existing venues. On September 1, 2022, the City Council adopted Resolution No. 20220901-089 initiating changes to develop and adopt clear land use definitions and to create a bonus and incentive program for broadly defined creative spaces. These Resolutions are being addressed concurrently. Revised definitions were approved on September 14, 2023, in Ordinance 20230914-097. Ordinance No. 20230921-103 and Resolution 20240229-060 reaffirmed City Council’s commitment to the creation of a density bonus and district program to support live music and creative space districts and the preservation and incentivization of affordable creative space. Summary of Proposed Code Amendment: The proposed code amendments will create a new combining district for an affordable creative space bonus program and: 1. Is available city-wide on parcels in majority commercial districts that have been rezoned to add the new combining district designation as areas that include existing or planned clusters of creative space use structures and sites, through a process including minimum size requirements and review from the Housing Department and Economic Development Department. 2. Defines the following land uses as creative space uses: 1. Art Gallery; 2. Art Workshop; 3. Cocktail Lounge; 4. Performance Venue; 5. Personal Improvement Services; and, 6. Theater 3. Requires the following use requirements for developments in creative district combining districts: 1. Along at least 30 percent of building frontage along the principal street, the building must be reserved for affordable creative space uses in ground-floor spaces; 2. At least 25 percent of ground floor gross leasable area in the building must be dedicated to affordable creative space; and, 1  3. Development must comply with protections consistent with Existing Non- Residential Space provisions of 4-18-31 for existing creative space uses in existence on the site for at least 12 months; the developer must: 1. Redevelop the site to replace all existing creative spaces with creative spaces C20-2023-026 of comparable size; 2. provide current creative space operators with: 1. notice and information about the proposed development on a form 2. a payment that equals the average rent payments for six months of rental approved by the director; payments; and 3. grant a creative space operator the option to lease a creative space of comparable size following the completion of redevelopment. 4. Requires an affordable lease for the the creative space operator returning to a redevelopment for ten (10) years; defines affordable creative space as the lesser of 50% of average retail space rent for the City of Austin, or a fixed ratio of annual revenues considered typical of and sustainable for the type of creative space; and limits year-over-year rent escalation to 5% or less for any creative space tenant. 5. Allows a development that provides on-site affordable creative space or pays a fee in- lieu for the preservation of an existing venue in the same district to be eligible for 30 feet of additional height above the maximum height allowed by the base zoning, up to 90 feet in total height and exemptions from the following site development standards: 1. Minimum site area requirements 2. Maximum floor area ratio 3. Maximum building coverage 4. Minimum street side yard setback and interior yard setback 5. Minimum front yard setback 6. Modifies the applicability of Article 10 Compatibility Standards and creates compatibility requirements for a participating development as follows: 1. Exemption from Article 10 (Compatibility Standards) Subchapter C 2. A 25 ft compatibility buffer that complies with Section 25-8-700 (Minimum Requirements for Compatibility Buffers) 3. Screening for certain objects including vehicle lights, mechanical equipment, and refuse collection areas Code Amendment Text: See attached background information. Staff Recommendation: Pending The Economic Development Department supports adopting this density bonus combining district as important Council-recommended actions to support preservation and new development of affordable space for live music venues and creative spaces. These tools support the regulatory changes identified in City Council Resolutions 20220728-094 and 20220901-089, including development bonuses designated districts to support creative spaces, and reaffirmed in City Council Ordinance No. 20230921-103 and Resolution 20240229-060. Rather than prescribe areas as creative districts directly, this unmapped district creates a tool that can be used by property owners in partnership with creative space operators, artists, and 2  C20-2023-026 musicians, to preserve and enhance clusters of live music, art galleries and workshops, theaters, and performance spaces, with strong community oversight through the rezoning process. Proposed criteria for applying this combining district are substantial, and intended to ensure that applications of the creative district combining district will be focused on areas with significant support from creative community and neighborhood stakeholders. Board and Commission Actions March 18, 2024 – briefing to the Arts Commission March 20, 2024 – Recommended unanimously by the Codes and Ordinances Joint Committee with Commissioners Greenberg and Azhar absent April 1, 2024 – briefing to the Music Commission July 9, 2024 – to be reviewed by the Planning Commission. Council Action July 18, 2024 – to be considered by City Council City Staff: Donald Jackson, Economic Development Department, (512) 974-2214, donalde.jackson@austintexas.gov 3