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Entity Staff Report - 7/4/2021CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Brian Fullmer Policy Analyst DATE:June 8, 2021 RE: Learned Avenue Alley Vacation PLNPCM2020-00572 PUBLIC HEARING UPDATE At the May 18 public hearing several people spoke in opposition to the alley closure citing gentrification concerns. Two people, including the applicant spoke in favor of closing the alley. The applicant claimed he worked with tenants of the homes adjacent to the alley with relocation costs. The Council voted to close the public hearing and defer action to a future Council meeting. As a reminder, the Council’s role is to determine whether it is in the City’s best interest to vacate the alley property and sell it to the developer at market value. The following information was provided for the May 18, 2021 Council briefing. It is provided again for background purposes. BRIEFING UPDATE At the April 6 Council briefing, a Council Member asked if it is legal for the Council to make an alley closure contingent on the applicant providing affordable housing units in a future project. Council staff noted the alley closure is at the Council’s discretion. The Attorney’s Office stated this condition could be written into the ordinance. The applicants discussed their proposed project. Plans for the new development would create a dead-end alley if the Council does not approve the alley closure. They stated this would likely attract illicit activity in Item Schedule: Briefing: April 6, 2021 Set Date: April 6, 2021 Public Hearing: May 18, 2021 Potential Action: June 1, 2021 Page | 2 the alley. In addition, preliminary plans include more parking than required which helps address nearby resident concerns about on-street parking. The applicants reported working with tenants of the four adjacent homes and provided financial assistance to help with finding and moving to new housing. A Council Member asked if there is precedent for conditioning an alley closure on affordable housing. Planning staff stated this is the first time they are aware of such a recommended condition for an alley closure. The Council Member expressed hesitance to set a precedent on this alley noting City staff workload. Council staff reiterated the Council’s authority to include the condition. It was also stated this might be added to the mitigation study to address similar situations in the future. A Council Member asked if affordable housing is included in the proposed project at the subject alley location. The applicant stated it is not included in this project. They would like to meet with City staff to discuss options for including affordable housing in future projects. The following information was provided for the April 6, 2021 Council briefing. It is provided again for background purposes. ISSUE AT-A-GLANCE The Council will be briefed about a proposal to vacate a 180 foot by 16.5-foot City-owned alley between North Temple and Learned Avenue, west of 1000 West in City Council District Two. The east-west alley is between a restaurant at 1025 West North Temple on the north and four single-family homes fronting Learned Avenue on the south as shown in the image below. It is currently being used as a parking lot for the restaurant. It does not fully connect through the block (see map on next page). Residents of the adjacent homes also use the alley’s painted parking stalls. All properties adjacent to the subject alley are owned by the applicant. A north/south alley between North Temple and Learned Avenue would remain open under the proposal. The applicant expressed an intent to demolish the four single-family homes, consolidate parcels adjacent to the alley and construct a multi-family housing structure with ground floor commercial space if the alley closure is approved by the City Council. On page two of the Administration’s transmittal Planning staff noted the four adjacent single-family homes could be considered naturally occurring affordable housing, which would be removed if the applicant redevelops the parcels with a multi-family housing structure. There are no specific plans at this point for how many units might be included and whether they will be considered market rate or affordable. If approved by the City Council, the vacated alley property will be sold to the applicant at market value. In its positive recommendation to the Council, the Planning Commission also recommended the applicant work with the City to address displacement of the four single-family homes, and the Council explore adding affordable housing to the development. The Council’s role is to determine whether it is in the City’s best interest to vacate the alley property and sell it to the developer at market value. Goal of the briefing: To review the proposed alley closure, address questions Council Members may have and prepare for a public hearing. POLICY QUESTIONS Page | 3 1. As discussed above, Planning staff noted the four existing single-family homes could be considered naturally affordable housing. The Council may wish to ask what type of housing the applicant intends to include in the future development. 2. Does the Council agree with the Planning Commission’s recommendation on this alley closure request? Image courtesy Salt Lake City Planning Division ADDITIONAL INFORMATION Alley vacation requests receive three phases of review, as outlined in section 14.52.030 Salt Lake City Code (see pages 5-7 below). Those phases include an administrative determination of completeness; a public hearing, including a recommendation from the Planning Commission; and a public hearing before the City Council. The Planning Commission staff report provides information relating to the following five key considerations related to this alley vacation. A short description of each issue is provided below for reference. Please see pages 17-19 of the Administration’s transmittal for full analysis of these issues. 1. Property Owner Consent Section 14.52.030 A.1 states “The petition must bear the signatures of no less than seventy five percent (75%) of the neighbors owning property which abuts the subject alley property.” When the Page | 4 application was submitted to the Planning Division, all adjacent property owners signed the petition in support of the proposal. The applicant now owns all adjacent properties. 2.Policy Considerations The petition meets at least one of the policy considerations for closure, vacation or abandonment of City owned alleys (Lack of Use, Public Safety, Urban Design, Community Purpose). As outlined below and in Attachment E (pages 34-36 of the Administration’s transmittal), Planning staff finds the alley vacation satisfies the Urban Design and Public Safety policy considerations. 3.Nature of the Alley Based on an aerial photo Planning staff found the alley has been used since at least July 2018 as parking for the restaurant at 1025 West North Temple and as parking for the adjacent single-family homes. The alley ends at the property to the west and does not appear to serve any purpose other than parking for adjacent properties. 4.Future Public Uses of the Alley Potential to use alleys for pedestrians, cyclists or other beneficial uses is considered in alley vacation requests. Because this alley ends at the western edge of the applicant’s property, it would not serve as an east/west mid-block connector for pedestrians, bicycles, or vehicles. Using it for vehicular access to the proposed development could impede pedestrian or cyclist use of the north/south alley that would not be closed under the proposal. Vacating the subject alley could provide vehicle access to the proposed development from Learned Avenue. This would encourage pedestrian access move to North Temple and to the remaining north/south alley. 5.City Housing Goals and Housing Displacement The applicant requested the subject alley closure as part of a plan to redevelop abutting properties into a medium/high-density multi-family residential building. The North Temple Boulevard Master Plan encourages increased residential density in the core and transition portions of transit station areas. The subject alley and abutting properties are in the transition portion. However, under the proposed development, residents of the four abutting single-family homes would be displaced when the structures are demolished. Growing SLC, the City’s 2018-2022 Housing Master Plan, established guiding principles for the City Council when appropriating funds for housing development. Planning staff noted vacating an alley (even if the alley is being sold to an applicant) should be considered an appropriation of City resources. Growing SLC principle 6 recommends the City Council “create a net increase in affordable housing while…avoiding displacement of existing affordable housing.” Planning staff and the Planning Commission recommend the developer mitigate housing displacement by including an affordable housing component into the future development. Attachment E of the Administration’s transmittal (pages 34 - 36) is an analysis of factors City Code requires the City to consider for alley vacations (Sections 14.52.020 and 14.52.030 B Salt Lake City Code). In addition to the information above, the other factors are summarized below. For the complete analysis, please refer to the transmittal. City Code required analysis: The petition meets at least one of the policy considerations for closure, vacation or abandonment of City owned alleys (Lack of Use, Public Safety, Urban Design, Community Purpose). Finding: Complies. Planning staff determined the proposed alley closure satisfies the Public Safety, and Urban Design policy considerations for the petition to be processed. Page | 5 City Code required analysis: The City Police Department, Fire Department, Transportation Division and all other relevant City departments and divisions have no objection to the proposed disposition of the property. Finding: Complies. City Public Utilities, Transportation and Zoning responded with no objections. City Code required analysis: The petition must not deny sole access or required off-street parking to any adjacent property. Finding: Complies. Occupants of 1022 West Learned Avenue currently use the subject alley to access parking in the rear. This property also abuts the adjacent north/south alley which would allow the applicant to move parking egress next to the alley without impeding use of that alley. City Code required analysis: The petition will not result in any property being landlocked. Finding: Complies. No properties would be landlocked as a result of the alley vacation. City Code required analysis: The disposition of the alley property will not result in a use which is otherwise contrary to the policies of the City, including applicable master plans and other adopted statements of policy which address, but which are not limited to, mid-block walkways, pedestrian paths, trails, and alternative transportation uses. Finding: Mixed. As discussed above, the North Temple Boulevard Master Plan encourages increased residential density in this area. However, Growing SLC recommends the City “create a net increase in affordable housing while…avoiding displacement of existing affordable housing.” The proposed development (separate from the alley vacation before the City Council) includes removal of the existing single-family homes and displacement of the residents. City Code required analysis: No opposing abutting property owner intends to build a garage requiring access from the property, or has made application for a building permit, or if such a permit has been issued, construction has been completed within 12 months of issuance of the building permit. Finding: Complies. The applicant owns all parcels abutting the subject alley, and as of the writing of this report no applications for a garage building permit have been submitted. City Code required analysis: The petition furthers the City preference for disposing of an entire alley, rather than a small segment of it. Finding: Complies. The applicant is requesting to vacate the entire east/west alley. Under the proposal, the adjacent north/south alley would remain intact. City Code required analysis: The alley property is not necessary for actual or potential rear access to residences or for accessory uses. Finding: Complies. As discussed above, occupants of 1022 West Learned Avenue currently use the subject east/west alley for parking egress. Parking egress could be moved to the east property line. PUBLIC PROCESS Notice of the project and a request for comments were sent to the Fairpark and Poplar Grove Community Council Chairs September 14, 2020. Planning staff sent an early notification announcement of the project to all residents and property owners living within 300 feet of the project site on September 15, 2020. Notice about the online open house for the project and information on how to give public input was included. Page | 6 An online open house for the proposed alley vacation was posted on the Planning Division’s website September 14, 2020. The 45-day recognized organization comment period expired October 30, 2020. Notice of the public hearing for the proposal included: • Public hearing notice mailed November 19, 2020 • Public hearing notice sign posted near the subject alley November 23, 2020 • Public notice posted on City and State websites & Planning Division listserv November 19, 2020 Public Input: Neither the Fairpark nor the Poplar Grove Community Council Chairs asked staff to present the proposed alley vacation at their meetings. Planning staff received one public comment email expressing support for the proposal. The process for closing or vacating a City-owned alley is outlined in Section 14.52 Salt Lake City Code. 14.52.010: DISPOSITION OF CITY'S PROPERTY INTEREST IN ALLEYS: The city supports the legal disposition of Salt Lake City's real property interests, in whole or in part, with regard to city owned alleys, subject to the substantive and procedural requirements set forth herein. 14.52.020: POLICY CONSIDERATIONS FOR CLOSURE, VACATION OR ABANDONMENT OF CITY OWNED ALLEYS: The city will not consider disposing of its interest in an alley, in whole or in part, unless it receives a petition in writing which demonstrates that the disposition satisfies at least one of the following policy considerations: A. Lack Of Use: The city's legal interest in the property appears of record or is reflected on an applicable plat; however, it is evident from an onsite inspection that the alley does not physically exist or has been materially blocked in a way that renders it unusable as a public right of way; B. Public Safety: The existence of the alley is substantially contributing to crime, unlawful activity, unsafe conditions, public health problems, or blight in the surrounding area; C. Urban Design: The continuation of the alley does not serve as a positive urban design element; or D. Community Purpose: The petitioners are proposing to restrict the general public from use of the alley in favor of a community use, such as a neighborhood play area or garden. (Ord. 24-02 § 1, 2002) 14.52.030: PROCESSING PETITIONS: There will be three (3) phases for processing petitions to dispose of city owned alleys under this section. Those phases include an administrative determination of completeness; a public hearing, including a recommendation from the Planning Commission; and a public hearing before the City Council. A. Administrative Determination of Completeness: The city administration will determine whether or not the petition is complete according to the following requirements: Page | 7 1. The petition must bear the signatures of no less than seventy five percent (75%) of the neighbors owning property which abuts the subject alley property; 2. The petition must identify which policy considerations discussed above support the petition; 3. The petition must affirm that written notice has been given to all owners of property located in the block or blocks within which the subject alley property is located; 4. A signed statement that the applicant has met with and explained the proposal to the appropriate community organization entitled to receive notice pursuant to title 2, chapter 2.60 of this code; and 5. The appropriate city processing fee shown on the Salt Lake City consolidated fee schedule has been paid. B. Public Hearing and Recommendation From The Planning Commission: Upon receipt of a complete petition, a public hearing shall be scheduled before the planning commission to consider the proposed disposition of the city owned alley property. Following the conclusion of the public hearing, the planning commission shall make a report and recommendation to the city council on the proposed disposition of the subject alley property. A positive recommendation should include an analysis of the following factors: 1. The city police department, fire department, transportation division, and all other relevant city departments and divisions have no reasonable objection to the proposed disposition of the property; 2. The petition meets at least one of the policy considerations stated above; 3. Granting the petition will not deny sole access or required off street parking to any property adjacent to the alley; 4. Granting the petition will not result in any property being landlocked; 5. Granting the petition will not result in a use of the alley property which is otherwise contrary to the policies of the city, including applicable master plans and other adopted statements of policy which address, but which are not limited to, mid-block walkways, pedestrian paths, trails, and alternative transportation uses; 6. No opposing abutting property owner intends to build a garage requiring access from the property, or has made application for a building permit, or if such a permit has been issued, construction has been completed within twelve (12) months of issuance of the building permit; 7. The petition furthers the city preference for disposing of an entire alley, rather than a small segment of it; and 8. The alley property is not necessary for actual or potential rear access to residences or for accessory uses. C. Public Hearing Before The City Council: Upon receipt of the report and recommendation from the planning commission, the city council will consider the proposed petition for disposition of the subject alley property. After a public hearing to consider the matter, the city council will make a decision on the proposed petition based upon the factors identified above. (Ord. 58-13, 2013: Ord. 24-11, 2011) Page | 8 14.52.040: METHOD OF DISPOSITION: If the city council grants the petition, the city owned alley property will be disposed of as follows: A. Low Density Residential Areas: If the alley property abuts properties which are zoned for low density residential use, the alley will merely be vacated. For the purposes of this section, "low density residential use" shall mean properties which are zoned for single-family, duplex or twin home residential uses. B. High Density Residential Properties And Other Nonresidential Properties: If the alley abuts properties which are zoned for high density residential use or other nonresidential uses, the alley will be closed and abandoned, subject to payment to the city of the fair market value of that alley property, based upon the value added to the abutting properties. C. Mixed Zoning: If an alley abuts both low density residential properties and either high density residential properties or nonresidential properties, those portions which abut the low density residential properties shall be vacated, and the remainder shall be closed, abandoned and sold for fair market value. (Ord. 24-02 § 1, 2002) 14.52.050: PETITION FOR REVIEW: Any party aggrieved by the decision of the city council as to the disposition of city owned alley property may file a petition for review of that decision within thirty (30) days after the city council's decision becomes final, in the 3rd district court.