Economic Development Committee

Pre pare d for t he Cit y of Lincoln Downtown Lincoln Code Audit Draft Recommendations June 14, 2023

The goal of this code audit is to recommend changes to code and regulations the City can implement to specifically increase housing development opportunities in the Downtown area. Recommendations typically include: ● Removing or relaxing regulatory land use barriers ● Encouraging wider range of housing options ● Streamlining permit approval processes We are tasked with conducting a code audit to identify barriers to housing development in Downtown Lincoln Example of code audit testing Multi-family development under existing code Multi-family development under alternative code.

Proje ct Purpose Wha t a re t he spe cific cha lle nge s t his proje ct int e nds t o t a ckle ? AGENDA 0 1 0 2 0 3 Zoning Code Ana lysis By Zone Dist rict Te st re sult s of e xist ing code a nd code a lt e rna t ive s Summa ry of Findings & Re comme nda t ions Wha t cha nge s t o t he code would support housing product ion in Downt own Lincoln?

Development feasibility and affordability was measured under the three following sce narios 1. Project Purpose

Downtown goal and objectives envision a vibrant and active Downtown core. “Downtown will function as the City’s core, an employment center, and a residential neighborhood with retail commercial activities focused on convenience shopping needs of surrounding neighborhoods.” Strengthen commercial core Provide a system of pedestrian places/spaces Provide night -time activity, entertainment, food Encourage 1st floor retail and restaurants Promote a successful business environment Downtown Urban Design Plan (1992)

Increasing housing supply in Downtown benefits businesses and residents alike “Encourage mixed use throughout downtown districts where appropriate and feasible.” “Provide housing within close proximity to downtown” “Concentrate multi -family/mixed -use development in and close to downtown” Source: Opticos for Davis, CA Encourage mixed -use & housing development Increase housing opportunities

The current zoning code was primarily designed for subdivisions on large empty sites, also known as greenfield sites . As a result, zoning regulations neglect the challenges and opportunities of small sites, also known as infill sites. Current code is not designed for small sites in and around Downtown Greenfield site ~45 Acres 0.92 Acres 0.34 Acres 0.22 Acres 0.15 Acres 0.15 Acres 0.22 Acres Lincoln blvd East Ave 9th Ave Infill site

Current code is focused on primarily regulating density and building use which can overly restrict development potential in the Downtown. 1. ‘High’ density housing is not really high density on small infill lots La rge Gre e nfie ld Lot 20 units/acre 1 acre 0.15 acres 20 units 3 units Sma ll Infill Lot 2 0 units/ acre

1. Mixed use and residential development is encouraged but not explicitly defined or permitted outright Source: Page 44 of Downtown Urban Design Plan What policy says… What code says… ● Residential uses require a conditional use permit ● No clear definition of mixed use ● Use a Planned Development overlay zones to allow and regulate a variety of housing types. Current code is focused on primarily regulating density and building use which can overly restrict development potential in the Downtown.

What changes to the code would support mixed use and housing development in the Downtown area? Source: Opticos for Davis, CA

Development feasibility and affordability was measured under the three following sce narios 2. Zoning Code Analysis by Zone District

St udy Are a

St udie d Zone Dist rict s R-1 R-2 R-3 C BP Opport unit y Sit e Single-Family Residential District Duplex Residential District Multiple Residential District Commercial District Business & Professional District

C COMMERCIAL ZONE

The Commercial zone is designated Community Commercial in the General Plan Land Use map. However, the General Plan also seems to envision mixed use for the zone in the Downtown area. C ZONE Commercial District Lincoln General Plan Lincoln General Plan

Mixed Use Apartments C Mixed Use | Desired Development

Aerial view 1,250 4 Dwe lling Unit s SF of Re t ail Oblique view The existing code results in this project: 9,500 SF Opportunity Site C Mixed Use | Existing Code

Financial Returns Rate of Return 8.2% (10 % t arge t ) Minimum Feasible Rent $2,225 (15 % above marke t re nt for small apart me nt ) This development does not meet financial feasibility targets given today’s market rents for smaller apartment units and retail spaces. Aerial view 1,250 4 Dwe lling Unit s SF of Re t ail Oblique view The existing code results in this project: C Mixed Use | Existing Code

De nsit y 20 units/acre only allows up to 4 units. Parking Requiring 2 spaces/unit is not feasible for multifamily development Condit ional Use Discretionary approval process can deter developers from pursuing development. Oblique view Aerial view 1,250 4 Dwe lling Unit s SF of Re t ail The existing code results in this project: What are the major barriers to residential development? 🅧🅧 🅧🅧 🅧🅧 C Mixed Use | Existing Code

# of Unit s 4 unit s Re t ail SF 1,2 5 0 SF He ight 2 -st ory Unit Size 6 4 5 SF # of Unit s 13 unit s Re t ail SF 2 ,5 0 0 SF He ight 4 -st ory Unit Size 6 4 5 SF Development under existing code Development under alternative code C Mixed Use | Alternative Scenario

60 units/acre = 13 units on this lot 13 UNITS 1. Increase in maximum density Infill lots are inherently small. If the desire is to encourage more housing along the commercial corridor, density limits need to dramatically increase. 20 units/acre = 4 units on this lot 4 UNITS Development under existing code Development under alternative code 1 C Mixed Use | Recommendations

2 spaces / unit 4 spaces / 1,0 0 0 SF of comme rcia l 0.75 spaces / unit 1 space/ 1,0 0 0 SF of comme rcia l 12 SPACES 13 UNITS 13 SPACES 2. Reduce or remove minimum parking requirements An increase in units means an increase in parking spaces. Space for parking on small lots is very minimal. If the desire is to encourage more dense mixed-use residential development of this type, parking ratios need to be reduced. Development under existing code Development under alternative code 4 UNITS 2 C Mixed Use | Recommendations

Cities in the US are increasingly ending parking mandates, with the trend accelerating since 2020 and continuing into 2023. Source: Catie Gould, The Sightline Institute Source: parkingreform.org C Removing Parking Minimums | Findings

Just because parking is not mandated does not mean that developers won’t build it. “Most new buildings in Buffalo (83 percent) have parking, while 53 percent have built as much as the former requirements called for. However, many mixed-use projects have built less parking and benefited greatly from the reforms.” Source: Parking Reform is Snowballing, Steuteville In Fall 2 0 2 0 , the Santa Rosa City Council adopted a new Downtown Station Area Specific Plan that eliminates minimum parking requirements within the Downtown Station Area boundary. C Removing Parking Minimums | Findings

4. Residential uses should be permitted outright instead of conditional & mixed use needs to be defined Requiring conditional use permits creates uncertainty of development, especially when criteria for approval are subjective. Developers are more inclined to pursue a project when uses are permitted outright, providing clear and objective standards. 3 C Mixed Use | Recommendations

Exist ing Recommendations Switch from Conditional to Permitted Re side nt ial as Condit ional Use Re side nt ial as Pe rmit t e d Use Conside r re side nt ia l use s t ha t a re curre nt ly condit iona l a s pe rmit t e d use s. Create a mixed use definition and related standards No st andards Re quire % of comme rcial on ground floor, amongst ot he rs De fining a nd a llowing mixe d use oft e n me a ns re quiring comme rcia l use s on t he ground floor of buildings fa cing t he ma in comme rcia l st re e t . Increase Maximum Density No St andard 6 0 unit s/ acre Conside r incre a sing de nsit y in Downt own Comme rcia l dist rict . Inst e a d, re gula t e building form wit h he ight , se t ba cks a nd building cove ra ge st a nda rds t ha t will inhe re nt ly re gula t e de ve lopme nt de nsit y. Reduce Minimum Parking Ratios - 2 space s/ unit - 4 space / 1,0 0 0 SF of comme rcial - 0 .75 space / unit - 1 space / 1,0 0 0 SF of comme rcial Re ducing or e ve n re moving minimum pa rking re quire me nt s ca n ma ke mult i-fa mily de ve lopme nt on sma lle r infill lot s more fe a sible . Increase Maximum Height 5 0 ft 5 5 ft Conside r incre a sing he ight ma ximum t o a llow for t a lle r ground floor comme rcia l a nd a ccommoda t e a rchit e ct ura l de t a ils. The se change s have a significant impact on t he like lihood a de ve lope r would pursue highe r de nsit y mixe d-use de ve lopme nt C Mixed Use | Recommendations

Que st ions/ Comme nt s on Dra ft Re comme nda t ions C ZONE ● Wha t do you t hink of t he se re comme nda t ions? ● Do t he se re comme nda t ions a ddre ss ba rrie rs you’ve he a rd in t he de ve lopme nt communit y? ● Are t he re re comme nda t ions you a re conce rne d a bout ?

BP BUSINESS & PROFESSIONAL ZONE

The purpose of the Business & Professional designation is to provide areas for professional and administrative services and offices. However, the zone is not used as intended… …nor does it encourage an efficient use of space. The existing code results in this project: 2,500 0 Dwe lling Unit s SF of Re t ail Oblique view Aerial view FACT: Over 50% of lots zoned BP in the study area are single family homes FINDING: An office development under the existing code requires parking that takes over 50% of the lot space. BP ZONE Business & Professional District

Exist ing Recommendations Allow Residential as Permitted Use Single Family (Condit ional) Apart me nt s Pe rmit t e d Out right Allow other Commercial Uses Profe ssional or Office Use s Pe rmit ot he r re t ail use s Create mixed use definition No st andard Re quire ground floor comme rcial Increase Maximum Density -- 3 0 unit s/ acre Reduce Minimum Parking Ratios - 5 .3 space / 1,0 0 0 SF of comme rcial - 1 space / unit - 1 space / 1,0 0 0 SF of comme rcial Reduce Minimum Side Yards 2 0 front / 5 re ar/ 5 side 15 front / 5 re ar/ 5 side The se change s have a significant impact on t he like lihood a de ve lope r would pursue ne ighborhood scale mixe d-use de ve lopme nt Neighborhood Scale Mixed Use BP Business & Professional | Recommendations

Que st ions/ Comme nt s on Dra ft Re comme nda t ions ● Wha t do you t hink of t he se re comme nda t ions? ● Do t he se re comme nda t ions a ddre ss ba rrie rs you’ve he a rd in t he de ve lopme nt communit y? ● Are t he re re comme nda t ions you a re conce rne d a bout ? BP ZONE

RESIDENTIAL DISTRICTS R3 R2 R1

R3 densities are fairly low despite having a High Density Residential Designation. The existing code results in this project: 12 6 Dwe lling Unit s Parking Space s Oblique view Aerial view What are the major barriers to high density residential development? 🅧🅧 🅧🅧 🅧🅧 🅧🅧 Density 2 0 units/ acre only allows up to 6 units. On 13 ,5 0 0 SF lot. Minimum Lot Size & Width 2 / 3 rds of lots zoned R3 in the study area do not meet minimum lot requirements for a fourplex building Parking Requiring 2 spaces/ unit is not feasible for multifamily development Setbacks Large setbacks for multifamily housing amount to large open spaces that are unusable and limit development potential. R-3 ZONE Multiple Residential District

12,500 SF Lot Size 8,500 SF Lot Size 10,500 SF Lot Size Existing code 12,500 SF Lot Size 8,500 SF Lot Size 14 UNITS 5 0 units/ acre 12 UNITS 5 0 units/ acre 9 UNITS 5 0 units/ acre R3 Reducing Minimum Lot Size | Findings “The minimum lot area of a four-family unit in the R-3 district shall be 8,500 square feet, and for each additional unit an additional 1,000 square feet.” 10,500 SF Lot Size 8 UNITS ~2 8 units/ acre Exceeds 20 unit max 8 UNITS ~2 8 units/ acre 4 UNITS ~2 1 units/ acre 6 UNITS ~2 5 units/ acre Recommendation “The minimum lot area in the R-3 district shall be 6,000 square feet” Conflicting Standards!

High Density Multi - Family High Density Residential | RecommendationsR3 Exist ing Recommendations Reduce Minimum Lot Size 8 ,5 0 0 SF (4 unit s) & 1,0 0 0 SF for e ve ry +1 unit 6,000 SF Reduce Minimum Lot Width 6 8 ft 50 ft Reduce Minimum Parking Ratios - 2 space / unit - 1 gue st space / 5 unit s Studios & 1 bed: 0.75 spaces/unit 2+ bed: 1 space/unit Increase Maximum Density 2 0 unit s/ acre 50 units/acre Reduce Minimum Side Yards 2 5 front / 15 re ar/ 5 side 15 front/5 rear/ 5 side The se change s have a significant impact on t he like lihood a de ve lope r would pursue highe r de nsit y mult i-family de ve lopme nt

Medium Density Residential | Existing CodeR2 Allow Fourplex Development Exist ing Recommendations Expand Permitted Uses Single Family, Duple x, Triple x + Fourplex Reduce Minimum Lot Size 6 ,0 0 0 SF (1 unit )/ 6 ,5 0 0 SF (2 unit s) & 7,5 0 0 SF for Triple x 6,000 SF Increase Maximum Density 12 .9 unit s/ acre 30 units/ acre Reduce Minimum Parking Ratios 2 space / unit 1 space/unit Remove Minimum Unit Area 1,2 0 0 SF Remove standard Reduce Minimum Side Yards 2 5 front / 10 re ar/ 5 side 15 front/5 rear/5 side The se change s have a significant impact on t he like lihood a de ve lope r would pursue a fourple x.

Senate Bill 9 streamlines the process for a homeowner or landowner to build a duplex or subdivide an existing lot (lot split). SB9 can allow up to 4 units on a single family zoned lot. Some examples of SB9 scenarios Existing Single Family New Duplex New Single Family New Single Family New Single Family Existing Single Family Existing Single Family New ADU New Duplex Whole Lot Developed Lot (2 units) Vacant Lot (2 units) Vacant Lot (4 units) Developed Lot (4 units) Developed Lot (4 units) New Duplex Vacant Lot (4 units) New ADU New JADU New Townhomes New ADU New ADU Urban Lot Splits Low Density Residential | Complying with Senate Bill 9R1

Expand Permitted Uses : Allow currently prohibited attached single family and duplex housing types in R1. Reduce Setbacks : Decrease minimum side and rear setbacks of 5ft and 10ft to 4 ft or less for both. Reduce Minimum Primary unit area : Allow a minimum primary unit area of 800 SF. Current code requires a minimum primary unit area of 1,200 SF. Reduce Minimum Parking Requirements : SB9 mandates parking minimums require no more than 1 space/unit, a reduction from 2 spaces/unit. Increase Density : Adjust General Plan density range to allow up to 2-4 units on a R1, which could range from 25 to 30 units per acre. Primary Changes to R1 and General Plan under SB9: Low Density Residential | Complying with Senate Bill 9R1 Some examples of SB9 scenarios Existing Single Family New Duplex New Single Family Whole Lot Developed Lot (2 units) Vacant Lot (2 units) New Duplex Vacant Lot (4 units) New ADU New JADU Urban Lot Splits New Single Family New Single Family Existing Single Family Existing Single Family New ADU New Duplex Vacant Lot (4 units) Developed Lot (4 units) Developed Lot (4 units) New Townhomes New ADU New ADU

Minimum Lot Size & Width: Urban lot splits can result in lots no smaller than 1,200 SF. Minimum lot widths will also need to be adjusted. Front Setback: Front setbacks reductions are not mandated but should not preclude development allowed under SB9. Alley Access: Alley access for off-street parking can unlock more buildable space for additional units on narrow lots. Establish Standards for Flag Lots : Need to define standards for urban lot splits resulting in flag lots. Other changes to R1 and General Plan under SB9 to not preclude lot split: Some examples of SB9 scenarios Existing Single Family New Duplex New Single Family Whole Lot Developed Lot (2 units) Vacant Lot (2 units) New Duplex Vacant Lot (4 units) New ADU New JADU Urban Lot Splits New Single Family New Single Family Existing Single Family Existing Single Family New ADU New Duplex Vacant Lot (4 units) Developed Lot (4 units) Developed Lot (4 units) New Townhomes New ADU New ADU Low Density Residential | Complying with Senate Bill 9R1

Que st ions/ Comme nt s on Dra ft Re comme nda t ions ● Wha t do you t hink of t he se re comme nda t ions? ● Do t he se re comme nda t ions a ddre ss ba rrie rs you’ve he a rd in t he de ve lopme nt communit y? ● Are t he re re comme nda t ions you a re conce rne d a bout ? R3 R2 R1

ECONOMIC DEVELOPMENT COMMITTEE June 14, 2023 CITY OF LINCOLN ECONOMIC DEVELOPMENT COMMITTEE June 14, 2023 Paul Joiner, Mayor Holly Andreatta, Councilmember Sean Scully, City Manager Andrea Faria, Chair Melanie Borchardt, Committee member Greg Dobson, Committee member Whitney Eklund, Committee member Bob Green, Committee member Joann Hilton, Committee member Jose Abad Hernandez, Committee member Jason Price, Committee member David Riccitiello, Committee member BOARD / COMMISSION / COMMITTEE 9:00 AM ****Amended Agenda (Zoom Link Updated) CITY HALL First Floor Community Meeting Room 600 Sixth Street Lincoln, CA 95648 or attend via ZOOM register by using this link: https://us06web.zoom.us/webinar/register/WN_soOckqMMR4ah16Jesqf_Cg or participate by calling US: +1 (669) 900-6833

ECONOMIC DEVELOPMENT COMMITTEE June 14, 2023 use ID# 884 8306 6022 and use *9 to raise your hand to speak 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. CITIZENS ADDRESSING THE COMMITTEE 5. APPROVE MINUTES 5.A. Meeting Minutes - May 17, 2023 5-17-2023 EDC Meeting Minutes AF.pdf 6. UPDATE (OLD BUSINESS) 6.A. Subcommittee Updates 1. Revitalizing Downtown Lincoln 2. Communications and Outreach 3. Subcommittee Calendar 4. Committee Members Open Forum 6.14.2023 Subcommittee Updates Supplemental agenda.pdf 7. NEW BUSINESS

ECONOMIC DEVELOPMENT COMMITTEE June 14, 2023 7.A. PG&E- Economic Development Program (Robert Flores) 7.B. Downtown Lincoln Project/ Cascadia Partners (Efren Sanchez) 8. REQUEST FOR INFORMATION 9. NEXT REGULARLY SCHEDULED MEETING- July 12, 2023 @ 9 am 10. ADJOURNMENT

ECONOMIC DEVELOPMENT COMMITTEE June 14, 2023 NOTE: Materials related to an item on this Agenda submitted to the Council/Redevelopment Successor Agency after distribution of the agenda packet are available for public inspection in the City Clerk’s office at 600 Sixth Street, Lincoln, CA during normal business hours. Such documents are also available on the City of Lincoln’s website at http://www.lincolnca.gov/ subject to staff’s availability to post the documents before the meeting. In compliance with the American with Disabilities Act, the City will provide special assistance for disabled members of the public. The meeting room is wheelchair accessible and disabled parking is available. If you have a disability and need a disability-related modification or accommodation to participate in the meeting, please contact the City Clerk’s Office at (916) 434-2490. As a courtesy, please make every effort to inform the Clerk of your needs at least 24 hours prior to the meeting so the City may make reasonable arrangements to ensure accessibility to this meeting. Pursuant to applicable laws and regulations, including without limitation, California Government Code Section 65009 and/or California Public Resources Code Section 21177, if you wish to challenge in court any of the above decisions (including any action regarding planning, zoning and/or environmental decisions), you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, the public hearing.