TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Kristin Retherford, Community Planning and Development Department Director
SUBJECT:
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Engrossed Ordinance Bill No. 8-24 updates the Unified Development Code to promote housing development and address other issues.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Welcoming and Livable Community
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SUMMARY:
summary
Engrossed Ordinance Bill No. 8-24 updates the Unified Development Code (UDC) to promote housing development, comply with State rules and laws, and update other provisions of the code.
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ISSUE:
Shall the City Council pass Engrossed Ordinance Bill No. 8-24?
RECOMMENDATION:
recommendation
Pass Engrossed Ordinance Bill No. 8-24.
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FACTS AND FINDINGS:
Proposed Amendments
Engrossed Ordinance Bill No. 8-24 (Attachment 1) updates the Unified Development Code (UDC) to promote housing development, implement changes in State rules and law, and update other provisions of the code. The proposed code amendment is included as Exhibit A of Engrossed Ordinance Bill No. 8-24 (Attachment 2) and is summarized below. These proposed changes advance goals and policies in the updated Salem Area Comprehensive Plan that aim to promote housing choices and mixed-use development in the Salem area.
1. Streamline the approval process
The proposed code amendment streamlines the approval process for housing developments and mixed-use projects in several ways, as described below. These proposed amendment addresses changes in State law.
• Allow adjustments for mixed-use projects in specific areas
The proposed code amendment would allow applicants to apply for an administrative adjustment if their mixed-use project could not meet a specific design standard in the Edgewater/Second Street Mixed-Use Corridor (ESMU) zone, West Salem Central Business District (WSCB) zone, South Waterfront Mixed Use (SWMU) zone, and Portland-Fairgrounds Road Overlay Zone. Under the City’s adjustment process, notice is sent to neighbors and the applicable neighborhood association, and staff considers any public input and determines if the adjustment criteria are met.
Currently, applicants who cannot meet one or more design standards - such as providing canopies or awnings along a certain percentage of a building’s ground floor - must go through a public hearing process to seek approval. This process can add time, money, and uncertainty to the approval process for housing projects. The ESMU, WSCB, SWMU, and Portland Fairgrounds Road Overlay Zone are the only zones in Salem that still require this public hearing process to deviate from design standards. The proposed code amendment therefore eliminates Class 2 and Class 3 Design Review, which only apply to applications that are subject to design guidelines and the associated public hearing process. (Engrossed Ordinance Bill No. 8-24 includes language that allows existing Class 2 and Class 3 Design Review approvals to be modified or extended.)
In recent years, Salem has shifted to using the City’s adjustment process to simplify, expedite, and promote housing development. For example, in 2020 as part of the Multifamily Housing Design project, the City removed the requirement for standalone multifamily housing - projects comprised solely of housing - to go through a public hearing process if they could not meet a design standard. Such projects can now seek an administrative adjustment.
• Allow adjustments to special use standards for housing
A few types of housing, including townhouses in single-family zones, are considered special uses in Salem. This means the uses are allowed, but they must meet additional standards unique to the use. The proposed code amendment would allow developers of townhouses and other residential special uses to apply for an administrative adjustment if they cannot meet a special use standard. Currently, if a developer cannot meet a special use standard for certain residential uses, they must apply for a conditional use permit. That conditional use permit process includes a public hearing. Changing the process to an administrative adjustment would expedite the approval process. The City already allows accessory dwelling units and middle housing projects - both of which are special uses - to seek adjustments when a developer cannot meet a special use standard.
• Streamline historic design review process for new housing
The proposed code amendment would create a new administrative historic design review process for housing development within historic districts or additions to existing historic structures. The new process would specifically apply to new construction within residential, commercial and public historic districts or additions or alterations of existing historic structures - either within those historic districts or individually listed local landmarks - that create new housing units. Such projects would be reviewed administratively as opposed to going through a public hearing before the Historic Landmarks Commission (HLC). Applicants, however, could choose to go through a public hearing before HLC if they preferred. The proposed code amendment would also allow such housing projects to seek administrative adjustments to historic design standards.
• Allow adjustments to density standards in specific areas
The proposed code amendment would allow an applicant to seek an adjustment to density requirements in the Portland-Fairgrounds Road Overlay and Capitol Mall (PM) zones. Currently, the code prohibits any deviations from the density requirements in those two zones. In all other zones in Salem, the City has removed this prohibition to provide greater flexibility for housing developments in recent years. As mentioned above, the adjustment process still provides the public with an opportunity to give input.
2. Allow more housing options
The proposed code amendment allows for a greater variety of housing options, as described below.
• Allow single-family and two-family uses as part of mixed-use buildings
The proposed code amendment would allow the development of single-family and two-family housing that are part of mixed-use buildings in the Mixed Use-I (MU-I) and Mixed Use-II (MU-II) zones. Currently, standalone single-family and two-family uses are largely prohibited in those two mixed-use zones because the zones are intended for higher-density development. There are some smaller lots, however, that are zoned MU-I and MU-II in Salem, and they may not be able to fit three units, which is allowed in both zones today. By allowing single-family and two-family housing in mixed-use development, smaller lots can accommodate housing, even if only one or two units.
Requiring the one or two units to be part of a mixed-use building ensures that the City’s mixed-use land is not used solely for single-family or two-family homes. Instead, the proposed code amendment promotes mixed-use development in the MU-I and MU-II zones, while also expanding the type of housing allowed in those zones. Single-family and two-family uses are already allowed as part of mixed-use buildings in the MU-III zone.
• Allows accessory dwelling units with townhouses
The proposed code amendment would allow accessory dwelling units (ADUs) to be developed with townhouses. Currently, ADUs are only allowed with detached single-family homes, including manufactured homes. Under the proposed change, ADUs could be built with up to two attached townhouses, with one ADU on each townhouse lot. The ADUs could be attached or detached from the townhouses. This proposed change promotes a greater variety of housing options on a lot, while encouraging infill development and the efficient use of land.
• Allow existing commercial buildings to convert to housing
The proposed code amendment implements a new State law that requires larger cities to allow existing commercial buildings to convert to residential uses. These conversions may not occur on land that is zoned to allow industrial uses. This proposed code amendment codifies that change in State law in Salem’s code; this provides clarity to developers and staff. In Salem, most zones that allow commercial uses - such as the City’s mixed-use zones - already allow housing, or they allow housing as part of mixed-use buildings.
3. Update standards for housing development
The proposed code amendment revises development standards to encourage more housing in different areas, as described below.
• Allow middle housing on smaller lots in a multifamily zone
The proposed code amendment would decrease the minimum lot size for two and three family uses in the Multiple Family Residential-II (RM-II) zone to match the lot size requirements in the Single Family Residential (RS) zone. Currently, the minimum lot size is 6,000 square feet for two and three family uses in the RM-II zone. Under the proposed amendment, the minimum lot size would be decreased to 4,000 square feet for two family uses and 5,000 square feet for three family uses. This would enable the development of more middle housing on existing small lots that are zoned RM-II.
• Establish and increase minimum densities
The proposed code amendment would establish a minimum density of 15 units per acre in the WSCB zone, which is located in West Salem. The proposed minimum density would apply exclusively to residential projects. The WSCB zone currently does not have a minimum density standard. The WSCB zone is intended to align with the CB zone and promote a walkable, vibrant, mixed-use center in West Salem. It allows a variety of housing, office, retail, recreation, and entertainment uses, and it allows buildings to be up to 70 feet tall.
The City has identified the WSCB zone as a potential Walkable, Mixed-Use Area (WaMUA) as part of Salem’s work to implement the State-mandated Climate-Friendly and Equitable Communities (CFEC) rules. WaMUAs - called Climate-friendly Areas by the State - must meet specific requirements to comply with the CFEC rules, including having specific minimum densities. By establishing a minimum density of 15 units per acre, the proposed code amendment brings the WSCB zone into compliance with the density provisions in the CFEC rules for WaMUAs.
The proposed code amendment would also increase the minimum density in the Central Business District (CB) zone, which the City has identified as a potential WaMUA. Specifically, the minimum density in the CB zone is proposed to increase from 20 units per acre to 25 units per acre. This change would bring the CB zone into compliance with the density provisions in the CFEC rules for WaMUAs. (The CFEC rules require that the City establish at least one WaMUA that is at least 25 acres in size and has a minimum density of 25 units per acre.)
4. Other changes
The proposed code amendment makes several other changes, including the following:
• Allows small animal veterinary and grooming services in the Central Business (CB) zone.
o As housing continues to be developed in downtown Salem, there has been a request to allow veterinary and grooming services in the CB zone, so residents can more easily access such services. Veterinary and grooming services are currently prohibited in the CB zone. The uses would need be operated entirely indoors.
• Establishes standards for security fencing and gates in the Salem Downtown Historic District and CB zone.
o Under the proposed amendment, fencing or gates used for security of recessed alcoves or entries of buildings could not block access to storefronts during normal business hours, could not cover storefront display windows, and could not be sight-obscuring.
• Changes the approval process for nonconforming uses where an applicant seeks to alter or expand that nonconforming use.
o Currently, the approval process includes a public hearing before the hearings officer. The proposed code amendment would make the process an administrative approval that includes public notice. This implements a change in State law.
• Eliminate discretionary criteria for land divisions and site plan review.
o The proposed code amendment removes several approval criteria that are discretionary in nature. For example, there is a criterion calling for safe, orderly, and efficient traffic circulation. The City already has standards elsewhere in the code that achieve that goal but do so in a more clear and objective way, such as the City’s parking lot design and circulation standards and pedestrian access standards.
• Specify a minimum canopy/awning depth in all zones and overlay zones - 6 feet - where ground floor weather protection is required for buildings facing a street.
o Currently, no minimum depth is required. Establishing a minimum depth helps ensure that canopies and awnings actually provide protection from the rain and other weather. Establishing similar weather protection standards in the Downtown Historic District and CB zone also helps to create consistency in the downtown area.
• Exempt outdoor storage areas in the IG zone from paving requirements
o Currently, the City exempts vehicle storage areas in the IG zone from paving requirements. The proposed change would expand this exemption to all outdoor storage areas in the IG zone, whether materials were being stored, for example, or vehicles were being stored. Gravel outdoor storage areas in the IG zone would also be exempt from perimeter setback requirements where they abut another IG-zoned property.
• Exempt the construction of a retaining wall from having to go through site plan review.
o Currently, the construction of a fence is exempt from site plan review. This proposed change adds retaining walls to that exemption. The proposed change also exempts the paving of an unpaved area to the list of exemptions as long as there are no applicable standards.
• Define “hard surface material,” and delete references to Public Works Design Standards.
o The UDC refers to Public Works Design Standards to determine what constitutes hard surface materials related to paving requirements; however, those Public Works standards do not include a definition of hard surface materials. This proposed change defines “hard surface materials” as including concrete, asphalt pavement, and pavers but excluding gravel. This creates clarify in the code for developers and the community.
• Requires applications for Class 2 Site Plan Review to include additional information needed to review proposed developments, such as the location of streets and a preliminary utility plan.
o Class 2 Site Plan Review applies to developments that impact sites - as opposed to just the interior of buildings - so the additional information is potentially needed to fully review applications.
• Clarify the minimum depth required for driveways - 20 feet - leading to garages in townhouse-style multifamily developments.
o The proposed change ensures driveways of townhouse-style homes are deep enough to accommodate a vehicle without having it hang over and block all or part of a sidewalk.
Testimony Received
The comments provided for the Planning Commission and Historic Landmarks Commission public hearing and the City Council public hearing are attached as Attachment 3. These comments have been summarized in Exhibit B of Engrossed Ordinance Bill No. 8-24 (Attachment 4), and staff responses have been provided.
Substantive Finding
The proposal includes amendments to the UDC. SRC 110.085 sets forth the following criteria that must be met for an amendment to the UDC to be approved:
1. The amendment is in the best interest of the public health, safety, and welfare of the City.
2. The amendment conforms with the Salem Area Comprehensive Plan, applicable Statewide Planning Goals, and applicable administrative rules adopted by the Department of Land Conservation and Development.
Findings demonstrating the proposal’s conformance with the applicable approval criteria are included as Exhibit B of Engrossed Ordinance Bill No. 8-24 (Attachment 4).
BACKGROUND:
The City periodically updates the UDC to respond to changes in State law and to address issues that have arisen since the last code amendment. The City most recently overhauled the UDC with the adoption of the Our Salem project last summer.
Eunice Kim
Long Range Planning Manager
Attachments:
1. Engrossed Ordinance Bill No. 8-24
2. Exhibit A of Engrossed Ordinance Bill No. 8-24 Proposed Code Amendment
3. Public comments
4. Exhibit B of Engrossed Ordinance Bill No. 8-24 Findings