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2007-05-21 (2) CITY OF BEVERLY MASSACHUSETTS PUBLIC MEETING MINUTES BOARD OR COMMISSION: Planning Board, Joint Public Hearing and Special Meeting SUBCOMMITTEE: DATE: LOCATION: MEMBERS PRESENT: May 21,2007 City Council Chambers, City Hall, 3rd floor Chairperson Richard Dinkin, John Thomson, Ellen Flannery, David Mack, Stephanie Williams, Charles Harris, Don Walter Joanne Dunn, Eve Geller-Duffy Planning Director Tina Cassidy, Assistant Planning Director Leah Zambernardi Andrea Bray MEMBERS ABSENT: OTHERS PRESENT: RECORDER: 1. Joint Public Hearim!:: City Council Order #103 - Proposed Zonim!: Amendment relative to Inclusion of Affordable Housim!: (Sections 29-34.1. and 29-2.) The City Clerk reads the public hearing notice. City Councilor Guanci opens the public hearing and invites Planning Board Chair Dinkin to join the Council at the desk. Dinkin steps up. Assistant Planning Director Leah Zambernardi states that the City received a grant under the Priority Development Fund Planning Assistance of Housing Production program through the Department of Housing and Community Development and MassHousing which was used to hire housing expert Judi Barrett of Community Opportunities Group to assist a committee in developing a draft Inclusionary Zoning Ordinance. She adds that after 1 1Iz years of work, the Ordinance has been submitted to the City Council for review and decision. She states that Inclusionary Zoning Committee members held several meetings with developers, attorneys and the public to get input for this Ordinance. Zambernardi introduces Judi Barrett. Barrett provides an overview of the key points of the Ordinance which include: a. Requires that developers provide some affordable housing when developing residential projects. b. Applies to residential subdivisions of 5 or more lots or multi-family projects of 5 or more dwelling units. c. 12% of the dwelling units must be affordable housing. d. In general, affordable units must be sold or rented to households with incomes at or below 80% of area median income. When an applicant provides at least 1Iz of Planning Board Minutes May 21,2007 Page 2 of8 the affordable units to people at or below 50% of area median income, the remaining affordable units may be sold or rented to households up to 100% of area median income. e. Affordable units must be comparable in quality and dispersed throughout a development. f. Affordable units may be provided on-site by right. The Planning Board may grant a special permit for providing a fee in lieu of units or units off-site. However, for development of less than 10 units, these options are all allowed by-right. g. If a developer provides a greater number of units on site than the minimum required, they may apply for a special permit to "credit" those units to another project. h. For projects providing all affordable units on-site, based on the zoning district you are in, a density bonus of one or two additional market rate unites) is allowed for each on-site affordable unit. However, no lot can be reduced by more than 15% of the required lot area in the zoning district the project is located in. 1. The Planning Board can grant a special permit for density bonus for a project, which includes both on-site and off-site units. J. All Inclusionary Zoning developments are subject to site plan review. Council President Guanci opens the issue up for questions and comments from the Council. Councilor Martin asks how they arrived at the 12% number. Tina Cassidy states that there will always be developments which will not be subject to the Ordinance, so if it was set at 10%, the percentage for affordable units in the City would drop over time. Councilor Coughlin comments on the town of Boxford in which home owners can build 1 and 2 BR units on their property and give preference to their parents, and after they pass on the owner could rent them as affordable housing. (Accessory Apartment Program) Barrett says that any affordable units must be rented in a way that does not discriminate and the Boxford program must be watched closely to insure that discrimination is not an issue. She adds that they must have someone in local Government that must oversee this program. Councilor Troubetaris asks for the definition of affordable housing. Barrett states that for low and moderate families, they are not required to spend more than 30% of their monthly incomes on housing expenses. Troubetaris asks about some existing affordable housing in the City which has an . . . . expmng-use provIsIon. Planning Board Minutes May 21,2007 Page 3 of8 Barrett states that these units will stay in affordable housing as long as it makes market sense. Troubetaris asks about the method for segregating the money collected from fees. Barrett states that it will be necessary for the City to establish an Affordable Housing Trust Fund, under Chapter 491 rules. Councilor Gooding asks why the number of units which trigger this Ordinance was set at 5. Barrett states that 5 units is a common trigger because any higher number would not permit the Ordinance to have the desired effect. Councilor Gooding asks why the flexibility is not available downtown. Barrett states that that is a major policy discussion. She adds that the City has existing zoning policies and this Ordinance was designed to parallel those existing policies. Councilor Gooding asks about the provision for the fee being in the regulations as opposed to being written into the zoning. Barrett states that most communities do it by regulation without writing it into the zoning. She adds that if the regulation changes the Planning Board will have to hold a public hearing to change the regulation, but will not need to rewrite the zoning. Councilor Grimes asks about the amount of the fee in lieu of affordable units. Barrett states that the City will need to look into this to determine the fee. Councilor Troubetaris asks where a developer would find off-site units. Barrett states that the developer buys them. Councilor Gooding asks about the meetings that were held. Barrett states that the developer meeting was great and she was pleased with the turnout and all of the comments received at these meetings. Councilor Grimes states that the OSRD produced a product which is problematic because it was rushed through. Planning Board Minutes May 21,2007 Page 4 of8 Dinkin states that the meeting with the development community was taken very seriously and they wanted to create an ordinance that would not create a barrier to developing housing in general. Councilor Flaherty asks if a developer can contribute money directly to the Affordable Housing Coalition. Barrett states that the money would first be paid into the trust fund to donate it as the fund see fit. The trust fund could then donate to the BARC. Councilor Troubetaris asks if there is discretion used when the trust assigns funds to affordable housing organizations. Barrett states that the trust fund must follow chapter 491 which governs the way the trust is managed. She adds that discretion must be used to determine if the recipient is legitimate. Councilor Gooding expresses concern about the strictness of the policy stating that an existing 5-unit building will be subject to the Ordinance by adding only one unit. Barrett states that this burden is not as great in this situation as it is for a developer that wants to develop raw land. Council President Guanci opens up for question and comments from the Planning Board. Thomson asks Barrett if she could be more specific about the amount of the fees which could be offered. Barrett says that she has seen fees as low as $15,000 per unit and as high as $700,000. She adds that in the high fee areas no one is developing any housing at all, so these areas have become virtually O-growth areas. Thomson asks Barrett what she would consider an acceptable range. Barrett states that they need to look at 3-4 years of sales in this City, and look at the developers and what is going on now. She gives an example: "If your main objective is take revenue and buy down the value of an existing unit and use it for affordable housing, then you should charge a high fee. If you want to keep the growth of affordable housing going, then the fees should be lower." Thomson asks if there is any downside to allowing the people to elect into this even if they are not required to abide by it. Planning Board Minutes May 21,2007 Page 5 of8 Barrett states that this could be done for developments that are small enough not to trigger this Ordinance. Rick Marciano of 141 McKay Street states that his taxes have gone up 200% in the last 7 years. He expresses concern about the additional tax burden placed on the citizens because of the properties for which the value has been bought-down. Councilor Burke states that Marciano is correct in his assumption that this Ordinance will raise his taxes, but the increase is marginal. Marciano asks if a higher percentage of affordable units can be imposed for properties near a train depot. Guanci states that it would be voluntary. Marciano asks if a bus stop would be brought into an area with a large percentage of affordable housing. Dinkin states that it would be a good idea but the Planning Board does not have control over transportation. Lee Delliker of Wind over Development states that there is a concern that this Ordinance be flexible. He expresses concern about the 5-unit trigger point. He states that he understands the 12% number. He adds that the group should be commended for the work that they have done on this Ordinance. State Representative Mary Grant states that housing is one of the most complicated legislative issues for this State. She says that she is pleased that Beverly is not subject to 40B because the City has an acceptable number of affordable housing units in place. She adds that most State Reps hate dealing with 40B. She expresses gratitude in knowing that Beverly is a City where people want to work on this issue. She commends the City and the Planning Department for doing this. She says that this Ordinance is complex but overall she feels very proud to be representing this City when we are here grappling with these important issues. Mickey Northcutt ofBARC reads a statement into the record which is in favor of the Ordinance. He asks the Council to pass the Ordinance. Rosemary Maglio of30 Pleasant Street states that all or most of the affordable housing units will be in Ward 2 or Ward 3 because it specifically allows density bonuses in these wards. She expresses concern with the density increase in the downtown area. She states that this ordinance gives too much power to the Planning Board because they can give density bonuses, or waive the density restrictions. Planning Board Minutes May 21,2007 Page 6 of8 Councilor Troubetaris explains that Ms. Maglio is missing the point of inclusionary zoning, stating that we are trying to include our young people and elderly people in housing to keep them in our community. Councilor John Burke advises Maglio that she is smarter than most of the people on the Council and a lot of what she said made sense. He tells Maglio that he would like a copy of her notes. Amy Maxner of 3 Clifford Avenue is the Beverly Conservation Agent. She states that it is important to understand this group of80% of the median income of Beverly, and to put faces on what this Ordinance means. She says that she could benefit from this Inclusionary Zoning Ordinance because she makes less than the median income. Maxner states that she loves Beverly and loves her profession and she would like Beverly to remain diverse and vibrant. She urges the Council to pass this Ordinance. Dinkin, on behalf of the Planning Board, thanks Barrett for all of her hard work on this Ordinance. He states that he is amazed that on this incredibly small grant she put in so many hours. He says that after he graduated from college, it was the economic diversity that existed in this community that allowed him to return to Beverly to live. Dinkin states that in his 22 years on the Planning Board, this is the single most important zoning amendment that the group has considered and he strongly urges passage. Mary Roderick of 14 Peabody Ave says that she believes that this Ordinance is important but it needs revision. She objects to the policy that this Ordinance will increase density in areas that are already dense, namely Wards 2 and 3. She asks what segmentation means. She asks what the median income is for Beverly. Mary Grant states that it is $52,000/year. Roderick asks what happens to the fee money. Dinkin states that the fee will go into a trust and the trust will donate to affordable housing. A trust will have to have rules, a trust instrument, and a board of trustees. Roderick objects to the policy that off-site units need not be in the same zoning district as the development. She finds that discriminatory. She expresses concern with having too many off-site units and states that there should be a minimum percentage of on-site units. Barrett addresses Roderick's questions and states that the City already has a zoning ordinance that guides development into some areas and away from others. She adds that developing affordable housing in a single family home district is very difficult. She states that this Ordinance will work with the existing zoning ordinance. Planning Board Minutes May 21,2007 Page 7 of8 Barrett explains the term "segmentation" by stating an example of a developer that owns a large parcel of land and files a subdivision plan for 4 lots at a time in order to stay under the inclusionary zoning radar. Barrett explains that smaller developments will have a "mini site plan review process" to accommodate the realities of a small project. She explains the applicability of the ZBA variance for developers in a non-residential zoning district seeking residential use. Renee Mary of274 Hale Street asks that they keep this hearing open. Council President Guanci asks the Councilor if there is a interest in keeping this hearing open. Councilor Coughlin: Motion to close the public hearing, seconded by Councilor Troubetaris. The motion passes 7-2. Councilor Burke and Councilor Grimes vote in opposition. All others vote in favor. Thomson: Motion to close the Planning Board portion of the public hearing, seconded by Mack. (Passes 6-0) Dinkin closes the public hearing and announces that the Planning Board will hold a special meeting immediately following in the adjacent conference room. Dinkin calls the special meeting to order. 2. Recommendation to City Council: Council Order #103 - Proposed Zonim!: Amendment relative to Inclusion of Affordable Housim!: After some discussion, the members agree to question Barrett for the next 15 minutes and then continue this meeting until another date. Thomson: Motion to address all questions to Barrett directly without going through the Chair, seconded by Mack. All members and the Chair vote in favor. The motion passes 7-0. The members ask Barrett questions for 15 minutes. Barrett suggests a dual fee schedule with different rates for projects with 10 or less units, and for projects with more. At the end of the questioning period, Barrett departs. Dinkin asks the members if they want to continue this to another night and the members agrees to this. Planning Board Minutes May 21,2007 Page 8 of8 Mack clarifies that the Board's vote on the Ordinance can only be yes or no, and any suggestions that the Board makes may not be more restrictive. Dinkin agrees that this is correct. The Chair tables the discussion of the Inclusionary Zoning Ordinance until June 4, 2007. 3. Approval of Minutes: Special Meetin2 of March 29. 2007: Re2ular Meetin2 of April 17. 2007: Special Meetin2 of May 7. 2007 The members review the minutes and make suggestions. Thomson: 7-0) Motion to approve the amended minutes, seconded by Flannery. (Passes Walter: Motion to adjourn, seconded by Flannery. (Passes 7-0) The meeting is adjourned at 10: 10 p.m.