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HomeMy WebLinkAboutItem 02- Climate-Friendly Areas AGENDA ITEM SUMMARY Meeting Date: 6/24/2024 Meeting Type: Work Session Staff Contact/Dept.: Chelsea Hartman/DPW Staff Phone No: 541-726-3648 Estimated Time: 45 Minutes S P R I N G F I E L D CITY COUNCIL Council Goals: Mandate ITEM TITLE: CLIMATE-FRIENDLY AREAS UPDATE ACTION REQUESTED: Provide guidance to the project team on potential scenarios for Climate-Friendly Areas (CFA) to inform next steps for outreach and identifying draft plan and code concepts and displacement mitigation strategies. ISSUE STATEMENT: Comprehensive planning staff have been working to implement the Climate Friendly and Equitable Communities (CFEC) administrative rules passed in July 2022 by Oregon’s Land Conservation and Development Commission in response to Governor Brown’s Executive Order 20-04. These rules include wide-ranging requirements for metropolitan areas, and the City of Springfield is mandated to comply with the rules that affect community engagement, land use, and transportation. To reduce greenhouse gas emissions, one component of the rules requires Springfield to identify and adopt one or more CFAs, which will allow for dense urban mixed-use centers where people can choose to meet most of their needs without relying on a car. ATTACHMENTS: 1. Council Briefing Memo 2. Presentation DISCUSSION/ FINANCIAL IMPACT: The CFEC rules are broad reaching, complex, and change the basis for land use and transportation in the metropolitan areas of Oregon. To assist with this State mandated work, the Department of Land Conservation and Development (DLCD) contracted with Lane Council of Governments (LCOG) to complete technical analysis to identify potential CFA locations (Downtown, Glenwood Riverfront, Mohawk, and Gateway/RiverBend), and with Kearns and West to create a “toolkit” for community engagement. This work was completed in 2023 and provided a foundation for the project’s Community Engagement Plan, which serves as a guide for project communications and outreach to inform the City’s next steps for selecting and adopting one or more CFAs. In early 2024, DLCD contracted with Cascadia Partners to work with city staff on the next phase of analysis and outreach. All work done by city staff is being supported by city funds. The project team recently conducted the first round of early community outreach to build awareness of the project and to solicit input on the potential areas being considered. Additionally, the project team summarized information about Springfield’s demographics and potential displacement risk, which LCOG analyzed in 2023. To better understand how much and what types of development could likely occur in potential CFAs, the project team considered infrastructure availability, major landowner willingness, and market economics. A variety of potential scenarios could be considered that meet State requirements for CFAs. The project team summarized the potential benefits and tradeoffs for a few scenarios that aim to respond to the community input. Staff is sharing the findings with Planning Commission and City Council for guidance on next steps. M E M O R A N D U M City of Springfield Date: 6/24/2024 To: Nancy Newton COUNCIL From: Chelsea Hartman, Senior Planner Jeff Paschall, Community Development Director BRIEFING Subject: Climate-Friendly Areas Update MEMORANDUM ISSUE: Comprehensive planning staff have been working to implement the Climate Friendly and Equitable Communities (CFEC) administrative rules passed in July 2022 by Oregon’s Land Conservation and Development Commission in response to Governor Brown’s Executive Order 20-04. These rules include wide-ranging requirements for metropolitan areas, and the City of Springfield is mandated to comply with the rules that affect community engagement, land use, and transportation. To reduce greenhouse gas emissions, one component requires Springfield to identify and adopt one or more Climate-Friendly Areas (CFAs), which will allow for dense urban mixed-use centers where people can choose to meet most of their needs without relying on a car. COUNCIL GOALS/ MANDATE: Council Goals: Mandate BACKGROUND The CFEC rules are broad reaching, complex, and change the basis for land use and transportation in the metropolitan areas of Oregon. To assist with this State mandated work, the Department of Land Conservation and Development (DLCD) contracted with Lane Council of Governments to complete technical analysis to identify potential CFAs and with Kearns and West to create a “toolkit” for community engagement. This work was completed in 2023 and provided a foundation for the project’s Community Engagement Plan, which serves as a guide for project communications and outreach to inform the City’s next steps for selecting and adopting one or more CFAs. On January 22, 2024, Springfield City Council provided input on the project’s key messages and provided guidance to staff on refining potential CFA locations, which include Downtown, Glenwood Riverfront, Mohawk, and Gateway/RiverBend. This resulted in removing some properties in land use districts that had the lowest existing compliance with the CFEC rules (e.g., properties zoned R-1, Heavy Industrial, Light Medium Industrial, Glenwood Employment Mixed-Use, Washburne Historic District) and removing a Commercial Mixed-Use area south of the railroad tracks in the potential Glenwood Riverfront CFA. On February 21, 2024, the City’s Committee for Citizen Involvement (Springfield Planning Commission) reviewed and unanimously approved the project’s Community Engagement Plan. This engagement plan built upon the work Kearns and West did in 2023 and includes the key messages that Council reviewed and provided input on at their January 22 meeting. The Committee also reviewed the draft Climate-Friendly Areas at a Glance document, which provides an overview of CFAs and how this work applies to Springfield. These documents, among other project materials, are available on the project webpage at bit.ly/SpringfieldCFAs. On April 29, 2024, the project team provided a communications memo to Council to share the Areas at a Glance document, an explanatory Handout, and to provide updates on the project’s Community Engagement Plan, including specifics on early outreach efforts. Attachment 1 Page 1 of 8 MEMORANDUM Page 2 CLIMATE-FRIENDLY AREAS – Project Updates in 2024 In early 2024, DLCD finalized a contract with Cascadia Partners to work with city staff on the next phase of analysis and outreach to further refine and select one or more CFAs. There are benefits and trade-offs when considering which and how many CFAs to choose, including community input, potential displacement risk, infrastructure availability, market conditions, and alignment with Springfield’s adopted plans and development regulations. Following is a summary of project updates in 2024. Community Engagement The project team developed outreach materials to provide visual and interactive overviews of what the project is, why Springfield is doing this work, and where the community can provide input to inform the potential CFA locations. Early community engagement efforts included: • 3,400+ letters to all owners, residents, and businesses within and near potential CFAs • 1,300+ views of project webpage, which includes a story map, a brief recorded presentation, an interactive map that is searchable by address, and 14 comments posted • 160 survey responses (open April 22-May 17) to gauge early thoughts on CFAs overall and the four potential areas that are being considered • 6 attendees at drop-in sessions for community members to learn more or ask questions (dates were included in letters and noted on the project webpage) • Social media posts (Facebook, Instagram, X (Twitter), NextDoor) about the project and input opportunities • Tabling at events and Flyers at various locations (e.g., Downtown Art Walk, Springfield Public Library, Willamalane Adult Activity Center) • Interviews with the Glenwood development team that is working on a proposed master plan concept and PeaceHealth as major landowners in some of the potential CFAs Community input from this first phase of outreach is summarized in the presentation provided in Attachment 2. Some key results from community engagement include: • 38% of survey respondents were generally supportive of CFA goals for convenient neighborhoods with transportation options and parks • 41% of survey respondents were unsure and expressed the importance to balance development with parks and public spaces and a preference for smaller mixed-use buildings with ample parking • 11% of survey respondents were not supportive and expressed concerns about potential displacement and housing affordability, increased density and traffic, and general concerns that State rules don’t allow for local considerations. • Downtown was voted as “most suitable” and had the most votes to become a primary CFA (allowed height of 85-feet and required minimum density of 25 units per acre) while Glenwood Riverfront was voted second. • There were some votes for Mohawk and Gateway/RiverBend to be considered for secondary CFAs (allowed height of 60-feet and required minimum density of 15 units per acre). The project team heard questions and concerns during this first round of engagement and developed a "Common Questions Answered" resource that is available on the project webpage. There will be more targeted opportunities for community input this fall. Demographics & Potential Displacement Risk The CFEC rules focus on reducing greenhouse gas emissions from vehicles while also supporting more equitable cities by improving transportation choices and allowing for areas where daily needs can be met by walking, biking, or taking transit. The rules require some cities, including Springfield, to take steps to address long-standing inequities in land use, zoning, and transportation investment (and disinvestment) decisions in Oregon, a state with a long history of discrimination and racism. Attachment 1 Page 2 of 8 MEMORANDUM Page 3 Potential development and/or redevelopment in CFAs, based on what the private market does, may increase property values over time. Those increases could result in higher property taxes and housing costs within the area. As part of identifying and designating one or more CFAs, the CFEC rules require that Springfield proactively consider the potential risk of displacement that may occur as a result of rising costs. Springfield is required to: • Identify populations that may be more at risk of displacement as new development occurs over time • Identify strategies that help to avoid, lessen, or alleviate the need for people to move elsewhere because of rising housing costs • Focus on engagement processes that strive to include the voices of underserved community members—especially those who have been harmed by past planning, climate, and transportation decisions In 2023, the project team analyzed demographics and potential displacement risk. A more detailed summary of those findings with demographic maps is available on the project webpage. Some key demographic findings include: • Springfield has slightly higher percentages of Indigenous people as well as people with disabilities than Oregon as a whole. • Low-income households (households earning less than 80% of area median income) comprise nearly half of Springfield’s households, a higher rate than in Oregon overall. • Springfield has a larger proportion of low- and moderate- income renters than Oregon overall. Having high proportions of low- and moderate- income renters means that more of the population is susceptible to potential displacement. As Springfield considers potential CFAs, it will be important to understand that a portion of current renters and homeowners may already struggle to keep up with the cost of housing. The potential displacement risk analysis provides spatial information on populations in Springfield that are subject to varying levels of risk of displacement, which will help inform CFA location choices, as well as which displacement mitigation strategies may best suit any CFAs that move forward for consideration. It is important to note that this analysis is based on the State’s methodology which is imperfect and spatial data alone is not enough to understand the nuances of displacement risk and its impact on underserved communities. This analysis can also inform next steps for community engagement or may be useful for other citywide housing efforts. Some key findings about potential displacement risk include: • The potential Mohawk CFA was identified as having some Vulnerable areas. o Vulnerable areas are identified as low-income compared to the city as a whole and include more older or multi-unit housing stock, but neither housing market activity nor demographic change is significant enough to indicate potential displacement risk. • The potential Downtown CFA was identified as having a mix of Vulnerable and Active Gentrification areas and a very small area of Late Gentrification. o Although not present in Downtown, Early Gentrification is the stage between Vulnerable and Active Gentrification. Early Gentrification areas represent the early phase in the gentrification process with relatively low-income households and having relatively vulnerable people (e.g., people of color, people with limited English proficiency, people with disabilities, single-parent households, and people 65 years and older) and older or multi-unit housing, compared to the city as a whole. Areas at this stage have relatively active housing markets, yet no considerable changes are found in demographics related to gentrification. o Active Gentrification areas are identified as low-income with a high share of vulnerable people, older or multi-unit housing stock, and active housing markets, compared to the city as a whole. They also exhibit symptoms of gentrification as indicated by demographic change. Attachment 1 Page 3 of 8 MEMORANDUM Page 4 • This analysis suggests that Downtown includes areas with elevated risk of potential displacement of underserved populations, and areas where shifts in demographics and the housing market have occurred. The Mohawk area has populations that may be vulnerable to displacement, but there is no gentrification as of yet. • While the potential Glenwood Riverfront and Gateway/Riverbend CFAs were identified as having no risk of potential displacement according to this analysis, the demographics show that the potential Glenwood Riverfront CFA has a higher proportion of low- income households, persons 65 years or older, and more affordable rents and home values. The potential Gateway/RiverBend CFA has a higher proportion of persons with limited English proficiency, persons with disabilities, and has seen increases in rents and home values. This information is important to consider when engaging with community members and when identifying potential displacement mitigation strategies. This analysis demonstrates the importance of proactively considering strategies to prevent, mitigate, or alleviate potential displacement as part of selecting one or more CFAs, such as investments in affordable housing, incentives for ADA accessible housing, and renter protections. POTENTIAL HOUSING CAPACITY & EXISTING CONDITIONS Housing Capacity The CFEC rules require that one or more CFAs be large enough to accommodate 30% of Springfield’s needed housing capacity (i.e. current and future housing need), which equates to 9,923 housing units based on the Springfield 2030 Residential Land & Housing Need Analysis. Based on the State’s methodology for calculating potential housing capacity, the four potential CFAs that Springfield is considering would accommodate more housing capacity than is required by the CFEC rules. Downtown is the only potential CFA that could meet this requirement on its own. Different parts or combinations of the potential CFAs could be identified that can meet current and future housing need. Below is a summary of potential housing capacity estimates for primary and secondary CFAs. Potential Areas Primary CFA Capacity Secondary CFA Capacity Potential CFA Area acres % of Needed Housing Dwelling Units % of Needed Housing Dwelling Units Downtown 238 33% 10,734 19% 6,129 Glenwood Riverfront 114 18% 6,051 10% 3,456 Mohawk 58 10% 3,412 6% 1,949 Gateway/RiverBend 175 20% 6,609 11% 3,774 Total 584 81% 26,806 46% 15,308 The State’s methodology assumes full redevelopment of entire CFAs with new mixed-use and multi-unit residential buildings of 7-stories for primary CFAs and 4-stories for secondary CFAs. To better understand how much and what types of development would likely occur in potential CFAs, the project team considered infrastructure availability, major landowner willingness, and market economics. Infrastructure Status The project team spoke with City and Springfield Utility Board staff to inform a high-level assessment of existing infrastructure capacity and what level of improvements might be needed if an area is selected as a CFA, allowing for more dense development over time. Some general takeaways include: • Stormwater and electric infrastructure are more costly and challenging to provide in urban contexts, which is relevant to all potential CFAs. Attachment 1 Page 4 of 8 MEMORANDUM Page 5 • Wastewater capacity is based on current projections for population and employment growth, but does not account for the higher level of increased density that would be allowed within the Downtown, Mohawk, and Gateway/RiverBend CFAs which would impact potential infrastructure needs and associated costs in those areas. The Glenwood Riverfront CFA area already allows for higher density development so the wastewater capacity already accounts for those impacts. • While there is existing infrastructure capacity in these areas, all of the potential CFAs would need improvements to support more development over time. • The Gateway/RiverBend CFA was identified as having the most significant infrastructure needs and constraints. The presentation in Attachment 2 provides more information about infrastructure conditions in the potential CFAs and highlights infrastructure needs based on a few scenarios of how many and which CFAs (primary or secondary) the City could consider exploring further as part of next steps. Major Landowner Willingness The project team held interviews with the Glenwood development team that is working on a proposed master plan concept for a 30-acre site within the larger 114-acre potential Glenwood Riverfront CFA as well as with a representative from PeaceHealth, the major landowner in the potential Gateway/RiverBend CFA. The purpose of these interviews was to understand how their development plans align with the intent of CFAs. The proposed concept for the Glenwood master plan area is generally aligned with CFA goals. The potential Glenwood Riverfront CFA has the highest existing compliance with CFEC rules and would require fewer changes to existing development regulations as compared to other CFAs. However, the current block sizes in the proposed concept for the master plan area may not align with State requirements. A deeper review of the CFEC rules would help determine if there could be an allowance for block length exceptions related to site or development constraints. The interview with PeaceHealth revealed that CFA goals do not seem to present any barriers to PeaceHealth’s plans, which include reserving a large portion of vacant land (currently zoned Medical Services and Mixed Use Commercial) for future uses that align with the hospital's needs. PeaceHealth acknowledges the need for and potential benefits of housing closer to the hospital. If this area was selected as a CFA, it would allow for more residential development than is currently allowed, which could be a benefit. PeaceHealth expressed being open to leasing land to developers for housing based on market demand. Market Economics Cascadia Partners analyzed current market conditions to understand what types of development the current market in Springfield could support and what could realistically be built if CFA standards were implemented. Comparing what existing zoning allows the market to produce today to what the market could deliver under the CFA standards informed more realistic housing estimates. Based on current market conditions, much less housing would be built than the capacity calculated using the State’s methodology. The project team vetted cost assumptions for the market study with local developers to ground truth the information based on Springfield’s context. Other feedback from local developers noted that the cost of new construction has increased in recent years and interest rates are currently high. Feedback also noted the importance of allowing for more housing to help drive the demand for non-residential uses. More detailed information about the market findings is provided in the presentation in Attachment 2. Some highlights include: Attachment 1 Page 5 of 8 MEMORANDUM Page 6 Key findings for existing zoning: Tested development prototypes that are allowed with existing zoning, such as small lot single units, attached/middle housing, garden apartments, and moderate density apartments. • Current land prices in the potential Mohawk CFA are too high to make most development types feasible. • As the Glenwood Master Plan Area develops, the market in the rest of the potential Glenwood Riverfront CFA could support a wide variety of housing types. • The potential Gateway/RiverBend CFA has a stronger market for ownership housing (e.g., small lot single unit and attached/middle housing) as compared to the other potential CFAs. • Garden apartments are feasible in the potential Downtown CFA, however, other types of development (e.g., small lot single unit, attached/middle housing, moderate density apartments) are less viable. Key findings for potential CFA zoning: Tested development prototypes that would be allowed with CFA zoning, such as middle housing with varying levels of density (e.g., duplex and fourplex), 3- and 4-story apartments, and 5- and 7-story mixed use. • Construction costs make 5- and 7-story buildings unlikely given current market conditions (Note: Some existing zones already allow for buildings of this height or don’t have maximum heights.) • Compact middle housing (e.g., fourplex) is most viable in the potential Mohawk and Gateway/RiverBend CFAs. • 3- and 4-story apartments are most feasible for the potential Downtown and Glenwood CFAs. Providing less on-site parking was found to makes projects more feasible. POTENTIAL SCENARIOS FOR CONSIDERATION A variety of potential scenarios could be considered that meet State requirements for CFAs. The project team summarized the potential benefits and tradeoffs for a few scenarios that aim to respond to the community input and analyses findings so far. More information about the benefits and tradeoffs of each scenario is provided in the presentation in Attachment 2. The project team is seeking feedback and guidance on whether any of these scenarios, or potential variations that are not listed, are preferred to inform next steps with outreach and identifying draft plan and code concepts and displacement mitigation strategies. This is not a final decision on which or how many CFAs will be selected for adoption. The table below provides a summary of rankings showing how each potential CFA aligns with certain State requirements based on the CFA Study findings. Most potential scenarios that are presented meet State requirements for housing capacity, while some scenarios have more market potential than others. Scenario B has the strongest potential for housing based on current market conditions while Scenario A has the second strongest potential. The existing Downtown Nodal Development Area shown in Scenario D is not large enough area to meet the State’s capacity requirement, so next steps would include looking at an area that is larger than Nodal Area but smaller than current potential Downtown CFA. More information about potential housing capacity based on market conditions and infrastructure considerations for each scenario is provided in the presentation in Attachment 2. Ranking of Potential CFAs based on Evaluation Criteria Downtown Glenwood Riverfront Mohawk Gateway/ RiverBend Development Regulation Compliance 2 1 4 3 Capacity for Housing 1 3 4 2 In or Near High-Density, Mixed Use Areas 1 2 3 4 Contain or Near Parks/Similar Amenities 1 2 4 3 High-Quality Transportation Options 1 2 4 3 Attachment 1 Page 6 of 8 MEMORANDUM Page 7 The following provides key findings related to alignment with existing plans and development regulations as well as findings for potential displacement risk, which will inform next steps for identifying draft plan and code concepts and displacement mitigation strategies. Question for City Council: Should the project team focus on one of the following potential scenarios, a different scenario, or continue exploring all four CFAs and come back with more information to inform Planning Commission feedback and City Council’s selection of one or more CFAs? Scenario A*: Glenwood Master Plan Area as Primary CFA with remainder of Glenwood Riverfront, Downtown, Mohawk, and Gateway/Riverbend as Secondary CFAs* • Glenwood Master Plan Area is currently well aligned with primary CFA regulations. • Some changes would be needed in other CFAs to comply with secondary CFA regulations (e.g., maximum block lengths and allowing housing in more areas). • No potential displacement risk identified in Glenwood Master Plan Area based on analysis. Scenario B*: Glenwood Riverfront as Primary CFA with Downtown, Mohawk, and Gateway/Riverbend as Secondary CFAs* • This is similar to Scenario A with the one difference being to include the entire Glenwood Riverfront as a primary CFA, which is currently most compliant with primary CFA regulations and ranked second in community survey for a primary CFA. • Some changes would be needed in other CFAs to comply with secondary CFA regulations (e.g., maximum block lengths and allowing housing in more areas). • No potential displacement risk identified in Glenwood Riverfront based on analysis, however, there are existing manufactured home parks and a concentration of people 65 years and older which should be considered. *Consideration for Scenario A and B: The project team could explore the potential for replacing Nodal Development Areas with CFAs. (Note: How to address Nodal Development Areas could alternatively be explored as part of upcoming work on code amendments for mixed- use districts.) Scenario C: Downtown as Primary CFA with no other CFAs • Downtown ranked highest based on CFA Study criteria and had the most votes to become a primary CFA in the community survey. • Existing zoning has some compliance with primary CFA regulations, but some areas (e.g., R-2 and Mixed Use Residential) would require increases to allowed maximum height and required minimum density. Other key changes would be to implement maximum block lengths and allow housing in Community Commercial zones. • Some concern about higher minimum density requirement being potentially limiting to new housing development that cannot achieve 25 dwelling units per acre in Downtown. Scenario D: Glenwood Riverfront as Primary CFA with smaller portion of Downtown as Secondary CFA to meet housing capacity requirement (no longer consider the potential Mohawk and Gateway/Riverbend CFAs for any changes) • This scenario focuses on the Glenwood Riverfront as a primary CFA and a smaller area of Downtown as a secondary CFA since those areas have higher existing compliance with CFA regulations and would require the fewest changes to existing plans and development regulations as compared to the other scenarios. Downtown ranked highest in the community survey with Glenwood Riverfront ranking second. • If Scenario D is preferred, the project team will need to propose a Downtown CFA boundary that meets the State’s housing capacity requirement as part of next steps. This area would be larger than the existing Downtown Nodal Development Area and smaller than the current potential Downtown CFA. Attachment 1 Page 7 of 8 MEMORANDUM Page 8 • No potential displacement risk identified in Glenwood Riverfront based on analysis, however, there are existing manufactured home parks and a concentration of people 65 years and older which should be considered. Consideration for all Scenarios: The potential Downtown CFA has the highest potential displacement risk, which will need to be considered when identifying displacement mitigation strategies, particularly for Scenario C which would allow a higher increase in density and potentially create more development potential in Downtown over time. Next steps Based on guidance from Planning Commission and City Council, the project team will work on next steps with outreach and identifying draft plan and code concepts and displacement mitigation strategies to help people avoid or lessen the need to move elsewhere because of rising housing costs. There will be more opportunities for the community to provide input this fall. In early 2025, appointed and elected officials will be asked to select one or more CFAs out of any remaining potential locations that are still being considered. In determining which area(s) will be designated a CFA, the project team will identify the specific changes required to land use and zoning rules and to Springfield’s Comprehensive Plan. Depending on the area(s) selected, staff may also need to identify changes to Springfield’s neighborhood refinement plans. Ultimately, the City Council will formally designate one or more CFAs and adopt the corresponding amendments to land use plans and the Development Code. If the selected area(s) include property outside the city limits, the Lane County Board of Commissioners will also be part of the adoption process. The project is targeted for completion by the end of 2025, but the deadline agreed to by DLCD is the end of 2026. RECOMMENDED ACTION: Provide guidance to the project team on potential scenarios for Climate-Friendly Areas (CFA) to inform next steps for outreach and identifying draft plan and code concepts and displacement mitigation strategies. Attachment 1 Page 8 of 8 1 Attachment 2 Page 1 of 31 Objective: Provide guidance on potential CFA scenarios to inform next steps for outreach and identifying draft plan and code concepts and displacement mitigation strategies Climate-Friendly Areas (CFAs) Overview Community Engagement Feedback Demographics & Potential Displacement Risk Housing Capacity Infrastructure Status Land Owner Willingness Market Economics Summary of Potential CFA Options -Benefits & Tradeoffs 2 Meeting Topics Attachment 2 Page 2 of 31 ●At least one primary CFA that’s at least 25 acres ●Must accommodate at least 30% of Springfield’s 20-year housing need (9,923 housing units) ●Allow for a mix of uses (e.g., Springfield’s existing mixed use land use districts) ●Accessible via existing or planned high-quality bicycle and pedestrian networks and within ½ mile of existing or planned high frequency transit corridors ●Strategies to help people avoid having to move elsewhere due to rising redevelopment costs CFAs intend to help achieve the State’s climate goals by addressing both transportation and land use. Specific requirements include: 3 CFA OVERVIEW What is Required in Climate-Friendly Areas (CFAs)? Attachment 2 Page 3 of 31 ●Optional, but no limit to how many are designated (can be of any size) ●Lower allowed heights (allowed height of at least 60 feet or 5 stories) ●More development allowed but not as much change in density (required minimum density of 15 units per acre) ●At least one required of a certain size (needs to be at least 25 acres in size) ●Higher allowed heights (allowed height of at least 85 feet or 7 stories) ●More allowed development (required minimum density of 25 units per acre) The State rules require at least one “primary” CFA. Cities have flexibility in designating additional primary and secondary CFAs, each with unique requirements. Primary CFAs 4 Secondary CFAs Springfield can choose different combinations of primary and secondary CFAs to best meet housing and development goals! CFA OVERVIEW What Are “Primary” vs. “Secondary” CFAs? Attachment 2 Page 4 of 31 5 160 responses COMMUNITY SURVEY GENERALLY SUPPORTIVE38% UNSURE41% NOT SUPPORTIVE11% ●Convenient neighborhoods with different amenities to meet needs ●Better transportation and walk/bike options ●Prioritized investments for high quality spaces like parks ●Balance development with preserving urban spaces and parks ●Concerns about 7-story buildings being main development type ●Prefer smaller mixed-use buildings with ample parking and transportation solutions ●Concerns over potential displacement and housing affordability ●Concerns about increased density and traffic congestion ●Concerns about State rules not allowing for local considerations COMMUNITY ENGAGEMENT FEEDBACK Survey Summary OTHER ENGAGEMENT ●3,400+ letters ●1,300+ views of webpage ●Social media posts ●Distributed flyers ●In-person and online events ●Interviews Attachment 2 Page 5 of 31 6 COMMUNITY ENGAGEMENT FEEDBACK Survey Summary DOWNTOWN GLENWOOD MOHAWK RIVERBEND ●Voted “most suitable” for CFA designation ●Most votes for primary CFA designation ●Voted second “most suitable” for CFA designation ●Second most votes for primary CFA designation ●Some votes for secondary CFA designation ●Some votes for secondary CFA designation Attachment 2 Page 6 of 31 7 Demographics & Potential Displacement Risk Demographics in CFAs ●Downtown: some Vulnerable and Active Gentrification areas and a very small area of Late Gentrification ●Mohawk: some Vulnerable areas ●Glenwood Riverfront and Gateway/ Riverbend CFAs were not identified as having any potential displacement risk but have some key demographics to consider for mitigation strategies ●Glenwood Riverfront: higher proportion of low-income households, persons 65 years or older, and more affordable rents and home values ●Gateway/RiverBend: higher proportion of persons with limited English proficiency, persons with disabilities, and increases in rents and home values Nearly half of Springfield’s households are low-income Attachment 2 Page 7 of 31 8 Demographics & Potential Displacement Risk Potential Displacement Risk in CFAs Area Typology Low-Income Vulnerable People Older or Multi- Unit Housing Active Housing Market Demographic Shift Vulnerable Yes Yes Yes No No Early Gentrification*Yes Yes Yes Yes No Active Gentrification Yes Yes Yes Yes Yes Late Gentrification No Yes No Yes Yes * Some area typologies did not appear in potential CFAs. Most of Springfield was identified as having no risk. Attachment 2 Page 8 of 31 9 Primary CFA Secondary CFA Potential CFA Area (acres) % of Needed Housing Estimated Dwelling Units % of Needed Housing Estimated Dwelling Units Downtown 238 33%10,734 19%6,129 Glenwood 114 18%6,051 10%3,456 Mohawk 58 10%3,412 6%1,949 Riverbend 175 20%6,609 11%3,774 Total 584 81%26,806 46%15,308 Potential CFAs HOUSING CAPACITY State’s Housing Capacity Calculation 100% of 20-Year Housing Need: 33,076 30% of 20-Year Housing Need: 9,923 Attachment 2 Page 9 of 31 10 Infrastructure Availability Land Owner Willingness Market Economics HOUSING CAPACITY A More Realistic Housing Calculation ●Does existing infrastructure support additional development? ●What additional infrastructure might be needed? ●Do major landowners in potential CFAs support new development? ●Is there alignment between the development vision for landowners and CFA goals? ●What types of development does the current market in Springfield support? ●What could realistically be built if CFA standards were implemented?Attachment 2 Page 10 of 31 11 Potential CFA Downtown Glenwood Riverfront Mohawk Gateway/ RiverBend Electric Water Wastewater Stormwater INFRASTRUCTURE STATUS CFA Specific Infrastructure Needs ●Close to two electric substations -sufficient capacity ●Requires water pump for buildings over 3-stories ●Requires study of wastewater basin on east end ●SUB is constructing new electric substations (2026) ●Requires new water infrastructure ●Requires wastewater pump for McVay Hwy area and collection system that is a significant cost ●Adequate electric capacity ●Requires wastewater piping capacity increase ●Has an electric substation but the least amount of capacity ●Water capacity likely an issue -analysis and new piping needed ●Requires wastewater pump station and force main Takeaways Attachment 2 Page 11 of 31 12 Key Takeaways ●The development vision for the site is generally compatible with CFA goals and standards - allow for mixed-uses and housing options for the 30-acre site ●Predominantly multi-unit buildings with strong placemaking elements and options for biking and walking ●Current block sizes in proposed concept may not align with State requirements and may require an exception ●The remaining acreage within the potential CFA boundary needs further investigation in terms of development efforts LAND OWNER WILLINGNESS Glenwood Development Vision Attachment 2 Page 12 of 31 13 Key Takeaways ●PeaceHealth is nearing full utilization of their existing shelled space –future needs would likely require new construction ●A 40-acre portion of PeaceHealth’s land north of the existing campus is already zoned for residential (R-2) and could benefit from increased density with CFA standards ●Portions of PeaceHealth’s site zoned Medical Services and Mixed Use Commercial are reserved for future health care uses ●PeaceHealth could benefit from having housing closer to the hospital for both staff and patients ●CFA requirements do not seem to present any barriers to PeaceHealth’s plans -most of the area is envisioned for more hospital uses with the potential for some housing based on market conditions. LAND OWNER WILLINGNESS PeaceHealth at Gateway/RiverBend Attachment 2 Page 13 of 31 14 MARKET ECONOMICS Development Considerations for Tall, Mixed-Use Buildings Wood Frame -> Wood Frame -Fire Rated -> Wood Frame Over Podium -> Steel & Concrete Factors Impacting Feasibility of “CFA-Style” Construction: ●Higher construction costs compared to traditional wood frame buildings ●Retail increases costs and negatively impacts feasibility ●High interest rates for financing ●Current rental rates in Springfield generally do not support higher density products given other cost factors ●Primary CFAs allow 85 ft buildings – more costly construction for wood frame over podium make this type of development unlikely based on current market economics Building HeightConstruction Cost / Sqft$ $$ $$$ $$$ Construction Type Needed to Reach 85ft Construction Type Springfield’s Market Currently Supports Attachment 2 Page 14 of 31 15 7 units per acre Existing Entitlements MARKET ECONOMICS Development Prototypes Small Lot Single Unit Attached / Middle Housing Garden Apartments Moderate Density Apartments 14 units per acre 28 units per acre 70 units per acre What does existing zoning allow the market to produce today? Land Use Districts Faux Podium Apts.Garden Apts.Attached Housing Small Lot Single Unit Mixed Use Commercial X X X X Community Commercial X X X R-2 X X Glenwood Office Mixed Use X R-1 X X Booth Kelly Mixed Use X X Glenwood Residential Mixed Use X Glenwood Commercial Mixed Use X R-3 X X Mixed Use Residential X X X X Attachment 2 Page 15 of 31 16 35 units per acre MARKET ECONOMICS Development Prototypes Compact Middle Housing 5-Story Mixed-Use (reduced parking) 7-Story Mixed-Use (market parking) 112 units per acre 177 units per acre CFA Standards These represent development types that could occur in areas where CFA regulations are implemented, if market conditions were supportive. What could CFA standards allow the market to deliver in the future? Attached / Middle Housing* 22 units per acre 3-Story Apartment (reduced parking) 77 units per acre 4-Story Apartment (reduced parking) 95 units per acre * Secondary CFA only Attachment 2 Page 16 of 31 X? 17 MARKET ECONOMICS What is Residual Land Value (RLV)? SOFT COSTS HARD COSTS PROFIT LAND COST FIXED $300,000 $75,000 $50,000 $500,000 The Residual Land Value is the highest price a developer can pay for land knowing other project costs. TOTAL SALE PRICE Attachment 2 Page 17 of 31 18 MARKET ECONOMICS Knowing RLVs Helps Estimate Market Potential Different product types have different Residual Land Values Land that costs less than or equal to the calculated Residual Land Value is financially suitable for that type of development Attachment 2 Page 18 of 31 EXISTING ZONING 19 Residual Land Value / Square Foot (SF) by Prototype Downtown Glenwood Mohawk RiverBend A negative RLV indicates that the land must be free and additional subsidies are required to make the project viable A positive RLV indicates the maximum land price per square foot that the project can sustain The 5th percentile land value shows the cost of the cheapest land in each CFA Attachment 2 Page 19 of 31 EXISTING ZONING 20 Residual Land Value / Square Foot (SF) by Prototype Downtown Glenwood Mohawk RiverBend 5th Percentile Land Value per Square Foot Small Lot Single Unit Attached / Middle Housing Garden Apartments Moderate Density Apartments Attachment 2 Page 20 of 31 EXISTING ZONING 21 Residual Land Value / SF by Prototype Downtown Glenwood Mohawk RiverBend Key Takeaways: •Garden apartments are feasible Downtown, however, other types of development are less viable •As the Glenwood Master Plan Area develops, the market in the rest of the Glenwood Riverfront CFA could support a wide variety of housing types •Current land prices in Mohawk are too high to make most development types feasible •Gateway/RiverBend has a stronger market for ownership housing (small lot single unit, attached/middle housing Attachment 2 Page 21 of 31 22 Residual Land Value / SF by Prototype Attached / Middle Housing* Compact Middle Housing 3-Story Apartment 4-Story Apartment 5-Story Mixed Use 7-Story Mixed Use CFA ZONING Downtown Glenwood Mohawk RiverBend * Secondary CFA only 5th Percentile Land Value per Square Foot Attachment 2 Page 22 of 31 Downtown Glenwood Mohawk RiverBend 23 Residual Land Value / SF by Prototype CFA ZONING Downtown Glenwood Mohawk RiverBend Key Takeaways: •3- and 4-story apartments are most feasible for Downtown and Glenwood. Lower parking ratios make projects more feasible •Compact middle housing is most viable in Mohawk and Gateway/RiverBend •Construction costs make 5- story and 7-story buildings unlikely given current market conditions Attachment 2 Page 23 of 31 24 ALL CALCULATION METHODS Dwelling Unit Yield by Potential CFA Yield by CFA -Study vs Market Capacity All CFAs as Primary All CFAs as Secondary Existing Code All CFAs as Primary All CFAs as Secondary Downtown 10,734 6,129 402 2,797 1,560 Glenwood Riverfront 6,051 3,456 2,249 4,222 2,715 Mohawk 3,412 1,949 0 658 368 Gateway/RiverBend 6,609 3,774 720 1,393 780 Total Capacity 26,806 15,308 3,372 9,070 5,422 State-Mandated Calculation Market-Constrained Calculation Assuming state-mandated calculations, a Downtown primary CFA or many different CFA combinations would meet capacity requirements. If we take current market conditions into account, getting close to the 30% requirement would require broad application of primary CFAs. 30% of Springfield’s 20-Year Housing Need: 9,923 units Attachment 2 Page 24 of 31 25 Glenwood MPA Primary, All Others Secondary Scenario A Primary CFA Secondary CFA Needed Infrastructure Investments: ●In Glenwood Master Plan Area (MPA), water and sewer service expansion to serve area. ●Development in RiverBend requires new pump station, sewer, and water lines / lacks parks access ●Additional electric transformers and feeders ($10-15 million) Displacement Risk: ●No risk in Glenwood Master Plan Area based on analysis Zoning Compliance: ●Glenwood Master Plan Area is well aligned with primary CFA regulations ●Some changes needed in other areas to comply with secondary CFA regulations (e.g. maximum block lengths and allowing housing in more areas) Housing Capacity*: 15,308 units Market Potential**: *30% of 20-year housing need: 9,923 units **Market potential to meet 30% housing need ●●●○○ Attachment 2 Page 25 of 31 26 Glenwood Riverfront Primary, Others Secondary Scenario B Primary CFA Secondary CFA Needed Infrastructure Investments: Reliance on Glenwood means: ●Major new water and wastewater infrastructure needed ●Lacks access but has plans for parks and civic spaces ●Requires an additional electric substation ($15-20 million) Displacement Risk: ●No risk in Glenwood Riverfront based on analysis -however, there are existing manufactured home parks and a concentration of people 65 years and older which should be considered Zoning Compliance: ●Similar to Scenario A as Glenwood Riverfront is most compliant with primary CFA regulations ●Some changes needed in other CFAs to comply with secondary CFA regulations (e.g. maximum block lengths and allowing housing in more areas) Housing Capacity*: 17,903 units Market Potential**: *30% of 20-year housing need: 9,923 units **Market potential to meet 30% housing need ●●●●○ Attachment 2 Page 26 of 31 27 Downtown Primary, No Other CFAs Scenario C Primary CFA Secondary CFA Needed Infrastructure Investments: Reliance on Downtown means: ●Development over 3 stories requires water pump ●Requires study of wastewater basin on east end ●Requires an additional electric substation ($15-20 million) Displacement Risk: ●Downtown has varying levels of potential displacement risk (most risk out of all potential CFAs) which will need to be considered when identifying mitigation strategies Zoning Compliance: ●Mixed Use Commercial and Community Commercial zones are mostly compliant with primary CFA regulations ●R-2 and Mixed Use Residential would need to allow increased density and height ●Would allow housing in Community Commercial zone Housing Capacity*: 10,734 units Market Potential**: *30% of 20-year housing need: 9,923 units **Market potential to meet 30% housing need ●●●●○ Attachment 2 Page 27 of 31 28 Needed Infrastructure Investments: All improvements in scenarios A, B, and C plus: ●Additional sewer and water extensions throughout Glenwood ●Improved parks access, particularly western portion of Glenwood Displacement Risk: ●No risk in Glenwood Riverfront based on analysis -however, there are existing manufactured home parks and a concentration of people 65 years and older which should be considered ●Smaller Downtown area has vulnerable and active gentrification areas to consider when identifying mitigation strategies Zoning Compliance: ●Glenwood Riverfront is most compliant with primary CFA regulations and would require the least changes ●Smaller Downtown area would have to be determined as part of next steps considering housing capacity and other findings Glenwood Riverfront Primary, Smaller Downtown Secondary Scenario D Primary CFA Secondary CFA Housing Capacity*: 7,787 units Market Potential**: *30% of 20-year housing need: 9,923 units **Market potential to meet 30% housing need ●●●●○ Attachment 2 Page 28 of 31 29 MARKET-CONSTRAINED CAPACITY Dwelling Unit Yield by Potential CFA and Scenario Yield by CFA and Scenario - Market-Constrained Scenarios Scenario A: Glenwood Master Plan Area Primary, All Others Secondary Scenario B: Glenwood Riverfront Primary, All Others Secondary Scenario C: Downtown Primary, No Other CFAs Scenario D: Glenwood Riverfront Primary, Smaller Downtown Secondary Downtown 1,560 1,560 2,797 287 Glenwood Riverfront 2,715 4,222 N/A 4,222 Mohawk 368 368 N/A N/A Gateway/RiverBend 780 780 N/A N/A Market-Constrained Method 5,422 6,929 2,797 4,509 State Calculation Method 15,308 17,903 10,734 7,787 Most scenarios comply with State requirements Some scenarios have more market potential than others 30% of Springfield’s 20-Year Housing Need: 9,923 unitsAttachment 2 Page 29 of 31 30 PROJECT SUMMARY Key Takeaways 1.Most scenarios meet the State-calculated requirements for housing capacity. 2.Taking current market conditions into account, none are likely to reach the housing capacity set by CFEC rules, but some scenarios offer better opportunities to meet 20-year housing needs than others. 3.Buildings over 4-5 stories are unlikely to be financially feasible until market conditions improve. 4.Tomorrow’s market won’t look like today’s: public investments could improve market conditions / lending and labor environment could change in 5-10 years. Attachment 2 Page 30 of 31 31 2023 2025*2024-2025 STUDY ADOPTSELECT ●Early community consultation ●Displacement risk analysis ●Identify potential CFAs ●Community feedback on potential CFAs ●Council selection of CFA(s) ●Community feedback on draft plan and code concepts ●Public hearings on proposed plan and code amendments for CFA(s) ●Adopt plan and code amendments along with displacement mitigation strategies for CFA(s) Spring ●City Council and Planning Commission consider narrowing CFA options ●Analyze remaining potential CFA(s) Summer ●Identify displacement mitigation strategies and share benefits and tradeoffs of potential areas for community feedback Fall-Winter Next Steps *State deadline: 2026 Attachment 2 Page 31 of 31