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VII. 1. Zoning Equity Working Group Report 1 MEMO To: Planning Commission From: PeggySue Imihy Bean, AICP Date: January 25, 2022 Subject: Zoning Equity Working Group Recommendations Overview Staff will provide the Planning Commission an overview of the work done by the zoning equity working group and their recommendations for the zoning code update. Attachments • Zoning Equity Working Group Recommendations Background In fall of 2021, as part of the zoning update, questions were raised by community members regarding how equity, specifically racial equity, was to be accounted for within the update of the new zoning code. A sub-group was formed which included members of the zoning working group, members of the community and planning staff to examine planning equity best practices and make recommendations to the draft version of the code. The group met four times between September to December, and with Staff assistance produced the attached document outlining recommendations. This process reviewed goals from the 2040 Comprehensive plan which were tied to producing equitable outcomes, then measured the proposed changes to the code against zoning best practices both locally and nationally which are proven or theorized to reduce disparities and increase equity. Using these best practices and the established goals of the 2040 Comprehensive Plan, the group determined how and to what degree these reforms might be implemented here in Hopkins. Staff was aided in this process by the consultant firm working on the zoning code update. The recommendations document offers both recommendations which should be taken during this zoning update process and associated next steps by staff, as well as recommendations which are directed at the City Council and will be brought forward with the draft zoning code. Next Steps Please review the attached recommendations and bring any questions and comments to the meeting. 1 Area of Potential Zoning Reform: Bike and Pedestrian Infrastructure Requirements Potential Equitable Outcome Current Standard Proposed Standard Historically, access to safe infrastructure for biking and walking has been inequitably distributed throughout communities. Numerous studies have shown that enhancing the ability of traditionally underserved populations to travel via non-motorized modes can potentially lead to improved outcomes in public health, safety, and economic development; promote economic development and resource efficiency; strengthen inclusive neighborhood relations; and bolster public transit services. Benefits of an equitable transportation system positively impact the entire community. Hopkins currently has a number of policies and standards which promote a high-quality experience for biking and walking. Development is currently required to provide sidewalks. • City of Hopkins Pedestrian and Bicycle Plan • Complete Streets Policy • Mixed Use District – Bicycle Parking Staff is interested in increasing the requirement for bike parking in all districts, especially around LRT station areas. Additional standards will be are included in Module 3, and may be amended per any recommendations of this group. Zoning Equity Committee Zoning Recommendation(s): • Module 3 should include clear standards for including bicycle parking in all multi-family, commercial, and industrial developments, both exterior to buildings and interior to buildings. Standards should be clear and easy to follow for developers, and staff and the consultant should work to explore if directional signage and “bike fix-it” stations could be required in Master Planned Developments (MPDs). Zoning Equity Committee Additional Recommendation(s): • Bike parking should be a priority throughout the community and the City should not rely solely on developments to provide this. The committee recommends that the City Council also consider ways to increase the availability of parking on City-owned land, and explore how to fund bike and pedestrian infrastructure in advance of increased use of these modalities with LRT opening. Staff Next Steps: • Staff will review module 3 based on the recommendation of the zoning equity committee and propose changes to bike parking requirements as needed. • Staff will continue to explore ways to increase public bike infrastructure and availability of bike amenities in MPDs. Area of Potential Zoning Reform: Building Materials Potential Equitable Outcome Current Standard Proposed Standard Building materials can refer to interior or exterior materials. Choice of building materials can have economic impacts to projects. Low quality interior materials can impact indoor air quality and create pollutant concerns for residents. Exterior materials standards are detailed in several different sections of the City Code Site Plan Review. The current code does not include any regulations on healthy building materials. • Section 102-128(4.c) • Business Park – Sec. 102-276 • Mixed Use – Sec. 102-370 • Façade materials start on page 12 of the draft module 2 • The proposed code does not include any regulations for healthy building materials. Zoning Equity Committee Zoning Recommendation(s): • The City Council should consider the creation of a policy which requires a sustainability or healthy building certificate for buildings when a development receives City financial assistance, such as LEED or another certification. While there may be some cost involved, members of the committee feel that this provides a good educational opportunity and gives peace of mind regarding the sustainability of new developments. Zoning Equity Committee Additional Recommendation(s): None. Staff Next Steps: None. 2 Area of Potential Zoning Reform: Form-Based Code Design Potential Equitable Outcome Current Standard Proposed Standard Where traditional zoning separates areas strictly based on uses, the impact of these regulations often result in the separation and segregation of people by income, race, and ethnicity leading to disparities in outcomes such as wealth, health, education, access to jobs and transportation. Modified Conventional Zoning The proposed code is a hybrid of Modern Conventional and Form-Based codes which focuses on creating a mix of commercial and residential uses in areas which are planned for redevelopment and managing sustainable growth. Zoning Equity Committee Zoning Recommendation(s): • A transition to hybrid form-based code is supported given the opportunity to advance equity through its ability to create compact, diverse, and transit supported development, while maintaining areas of traditional low-density and industrial uses. In Module 3, the committee would like special attention paid to the ways in which developments are approved so that there is still ability for neighborhood participation and input on proposed developments as to prevent potential gentrification that could occur through “by-right” development. Zoning Equity Committee Additional Recommendation(s): • The City Council should consider the development of a tool such as an Equity Impact Analysis, Displacement Analysis, or other tool which staff and developers can use to understand the effects a project may have on the community. Staff Next Steps: None. Area of Potential Zoning Reform: Sustainable Development and Solar Requirements Potential Equitable Outcome Current Standard Proposed Standard The effects of climate change disproportionately affect BIPOC members of our community and BIPOC residents often spend a higher percentage of their income on energy. Increased requirements for sustainable development such as requiring or incentivizing solar panels as well as ensuring a city’s code is supports solar uses and sustainable development practices, can reduce the cost burden of electricity, and help meet climate goals. The city currently regulates solar development through the zoning code, but does not have any incentives for sustainable development. CodaMetrics has offered a list of Sustainability options which can be included in the code. Zoning Equity Committee Zoning Recommendation(s): • The new code should incorporate the recommendations of the consultant regarding increasing sustainability requirements, particularly items which are difficult to retrofit at a later date such as stormwater design and building materials. • The City Council should consider the creation of sustainable development policy to be applied when a development seeks City financial assistance. • Incentives for sustainable development, such as increased density or reduced parking, when developments exceed sustainability requirements set by the code should also be considered. • The new code should include a requirement for Electric Vehicle (EV) charging for all new developments. Zoning Equity Committee Additional Recommendation(s): None. Staff Next Steps: • Staff will continue working with the consultant team to include any best practices for sustainability in the draft version of the code. • Staff recommends looking at model example ordinances which require EV charging and adopting a policy similar to neighboring communities. 3 Area of Potential Zoning Reform: Increased Notification Standards Potential Equitable Outcome Current Standard Proposed Standard Many communities rely on notifying the property owner on file for sending letters about public hearings and development based on the requirement by state statute. Cities can create more opportunities and awareness of projects by ensuring not just property owners are made aware of development and providing more opportunities for resident feedback and input. • Currently the City Code requires notification of land use applications be sent to property owners within 350 feet of the proposed development, however staff regularly increases this distance to 500 feet. • A neighborhood meeting held by the developer is required for CUPs adjacent to a residential property and for rezoning of property, within 7 days of the Planning Commission review. • A public hearing is held by the Planning Commission and residents may provide comment at the meeting or prior to the meeting in writing. Staff is currently reviewing the best ways to increase notification of development, and formal recommendations will be included with Module 3. Staff is interested in codifying the following changes, which staff has already begun piloting: • Increased distance for notification • Sending notification not to just the property owner but all rental units and/or tenants in a commercial property • Adding a “Proposed Development” sign to the property • Adding public hearing information to city communications Zoning Equity Committee Zoning Recommendation(s): • Notification of rental tenants and commercial property owners and their tenants should be codified within the new code to ensure notification of development projects. • Notification distance should be formally codified to a distance between 500 and 1000 feet rather than 350 feet. • It should be codified that upon staff determination, the developer should pay for interpretation and translation services for public hearing notices and public meetings from the escrow of an application. Zoning Equity Committee Additional Recommendation(s): • Staff should encourage developers to continue to offer an online meeting option in addition to in-person meetings even after the COVID-19 pandemic is over in an effort to offer more options for participation. Staff should also continue to work with developers to determine the most appropriate time and location for public meetings based on community customs or norms. Staff Next Steps: • Staff will work with the consultant to update the draft code to reflect the recommendations of the zoning equity committee in terms of notification of rental tenants and commercial property owners. • Staff will explore a policy which clearly outlines the requirements and cost to developers for translation/interpretation services. • Staff recommends that the new distance for notification for mailings be set to a 500 foot minimum, which may be increased in certain circumstances (project size, ROW constraints) at the discretion of the Zoning Administrator. Area of Potential Zoning Reform: Streetscaping, Landscaping and Lighting Potential Equitable Outcome Current Standard Proposed Standard Well-designed streetscapes, landscaping and lighting can create urban forms which feel safe, inviting, and welcoming as well as produce economic benefits for the community. By balancing the needs of multiple modes of transportation and making public spaces accessible to all users, cities can have improved access and equity. Areas of excessive heat are also areas of high populations of BIPOC residents. Incorporation of items like street trees, pervious pavers and other climate resiliency strategies can improve health outcomes for vulnerable populations. Currently the city only has standards for streetscapes and landscaping in the Mixed-Use District and requirements mainly focus on trees and other landscaping. Streetscape design is located in Module Two of the zoning code. Zoning Equity Committee Zoning Recommendation(s): • Landscaping and streetscaping requirements should be required in all districts, where appropriate, as a means to increasing climate resiliency. • Staff and the consultant should explore ways to require native and low water need plantings to reduce heavy water demand. • In Module 2, where parking stalls in parking lots are currently prioritized over landscape islands, landscape islands should take precedent over parking stalls. 4 Zoning Equity Committee Additional Recommendation(s): • Staff should evaluate areas of significant climate concern, particularly areas which are not resilient to heat island effects, and determine how the code may be modified in the future to add increased requirements to these areas. Staff Next Steps: • Staff will work with the consultant team to incorporate the recommendations of the zoning committee related to landscaping and streetscaping. Area of Potential Zoning Reform: Accessory Dwelling Units Potential Equitable Outcome Current Standard Proposed Standard Accessory Dwelling Units or ADUs can be internal or external housing units which are constructed on single-unit or two-unit dwelling lots. Sometimes called a “granny flat” or ‘mother-in-law” suite, these units provide a fully independent living situation from the primary dwelling unit(s). The addition of ADUs is often seen as a way to create needed housing stock in areas which are either not suited for significantly higher density housing or have access to schools, jobs, and transit. ADUs can also provide a community with much needed life-cycle housing for an aging population. Currently, the city does not allow accessory dwelling units. The Zoning Update proposes to add ADUs – called Backyard Cottages to all Neighborhood Districts. These units can be up to 800sq ft, subject to district regulations, and do not have any increased parking requirements. Zoning Equity Committee Zoning Recommendation(s): • Adding ADUs throughout the community is supported and as one of several strategies the City should pursue to increase housing choices and access to neighborhoods Zoning Equity Committee Additional Recommendation(s): • Staff should continue to explore how to ensure fair and equitable access to ADUs can be ensure and apply rental standards as applicable. Staff Next Steps: None. Area of Potential Zoning Reform: Standards in Single Family Home Neighborhoods Potential Equitable Outcome Current Standard Proposed Standard Single family neighborhoods are a direct result of racist and exclusionary zoning and lending practices which sought to build communities, through bank lending processes or racially restrictive covenants, which excluded communities of color. Providing access to these neighborhoods through the development of multi- family units and reducing cost to build single family homes, which are often centers of robust open space, access to transit and walkable amenities and excellent schools can create more diverse and inclusive communities. The current standards for residential districts are located within the zoning code. Currently, 2 unit and 2-4 unit are only allowed within the R-2 and R-3 districts. Minimum lot sizes and lot standards are also established in the zoning code. The proposed update shifts many of the residential areas into allowing slightly higher densities and building transitional areas of higher density as land uses get closer to dense stations areas. Lot standards are reduced in many zones which could result in the creation of some new single-unit homes due to the ability to split double lots. Two unit dwellings are proposed to be allowed in all N-3-B - Neighborhood Zones in the Zoning Update. Proposed Zoning Map for reference. Zoning Equity Committee Zoning Recommendation(s): • The N3-B Zone and the N3-A Zone should be allowed to have two-unit dwellings as another strategy to increase housing stock within the City. • The City Council should consider if neighborhoods with larger lot sizes, N-1, N-2A & N2-B, should also be allowed to have two-unit homes as they have significantly larger lots sizes could easily accommodate them. • Staff should further explore how “Courtyard Cottages,” or also known as cluster developments, which have several small single unit homes and share an interior courtyard could be accommodated in the new code. Zoning Equity Committee Additional Recommendation(s): None. 5 Staff Next Steps: • Staff will work with the Consultant team to allow for two-unit dwellings in the N3-A and N3-B Zones. • Staff will work with the Consultant team to discuss cluster developments are accommodated in the code. Area of Potential Zoning Reform: Inclusionary Zoning and Inclusionary Housing Policy Potential Equitable Outcome Current Standard Proposed Standard Inclusionary Housing, sometimes called inclusionary zoning refers to policies or zoning standards that cities can enact to increase the supply of affordable housing which can promote racial equity and combat the effects of a history of exclusionary zoning. Lack of affordable housing can lead to increased physical and mental health disparities, in addition to the inability of residents to meet their basic needs. Currently the city does not have any inclusionary housing requirements. • ADUs called in the Zoning Update as Secondary Suites, also called Backyard Cottages, are proposed in all Neighborhood Zones. • Two-unit dwellings are allowed in many of the neighborhoods which previously only allowed single-unit dwellings future reducing our areas which allow exclusively single-family homes. • The Zoning Update does not include any incentives or requirements for inclusionary housing Zoning Equity Committee Zoning Recommendation(s): • The City Council should explore the risks and benefits of having an Inclusionary Housing Policy that is tailored to the City of Hopkins. Members were especially curious about how market conditions, such as the appreciation of land values, increase in population due to pending developments and SWLRT have changed in the last few years and how these change might create market conditions which are conducive to such a policy. Zoning Equity Committee Additional Recommendation(s): • Members feel that it is important to remember that creation of housing is only one tool in the toolbox for ensuring the affordability of housing in the comm unity. Many measures outside of the zoning code can preserve the existing affordable housing stock in Hopkins, and the group would encourage the City Council to consider policies which would prevent displacement due to regional lack of affordable housing and development of the SWLRT. Members would also like to see increase opportunities for ownership of single-unit homes and homes within multi-unit buildings, such as condos. Staff Next Steps: None. Area of Potential Zoning Reform: Parking Standards Potential Equitable Outcome Current Standard Proposed Standard Reducing the requirement for parking can reduce disparities in wealth by lowering housing costs, allowing more land for development, and positively impacting climate goals. The current Zoning Code has many places where number and type of parking is required. Allowances for a reduction in parking can be made if applications can provide a Travel Demand Management plan or if they can provide Shared Parking with other uses or on-street parking. Additionally, parking for commercial uses is not required in the Downtown Zone due to the availability of City-owned lots and a ramp. • Article XV Off-Street Parking • Parking The level of parking required in the new zoning code will be a part of Module 3 and exact standards for each district have not yet been determined, but staff is considering the following changes: • Development minimum and maximum parking requirements, creating only maximum standards or eliminating parking requirements • Expanding the use of shared parking • Requiring parking studies • Creating a credits system to reduce parking based on factors such as availability of transit, walkability, or affordability • Creating reduced standards for areas located near LRT stations • Expanding the downtown parking exemption area 6 Zoning Equity Committee Zoning Recommendation(s): • The committee recommends that code sections related to the reduction of parking standards be context sensitive and provide a community benefit. While members understand that modality choices in Hopkins is changing, they believe that reliance on public transit is not always a viable option for workers and families. • The committee did not reach consensus on a recommendation to the City Council on whether the parking exemption area in the downtown for commercial uses should be expanded. While some felt that parking was often difficult already, other felt that parking was plentiful and easy to find. • If a credits-for-parking program were to be modified or expanded, the committee recommends that the City Council provide incentives that are tied to equity considerations and/or other community benefits such as providing a reduction in rent charged for not having a vehicle or proximity to transit-oriented development. Again, the Committee understands that in the future less parking may be needed within the community, but also wants to be cognizant of those in situations where limited access to parking is ultimately harmful for economic mobility. Zoning Equity Committee Additional Recommendation(s): • None Staff Next Steps: • Staff will explore opportunities for shared parking or publicly-owned parking in the west end of downtown for commercial parking. • Staff will work with the consultants to ensure that parking recommendations are both context sensitive, and well as future-focused.