Growth Management & Multi-Family Housing Town Council Workshop December 14, 2016 Growth Management & Multi-Family Housing

Scarborough’s Growth Management History The History – Rapid Single-Family Housing Growth

Impacts of Growth New SF homes w/ school-aged children overburdening existing school facilities Late ‘90s/early ‘00s – Middle School & High School acute capacity issues Lead to major H.S. addition, modulars at M.S., Wentworth, and Eight Corners Other municipal service & building stresses create growing pains in variety of departments

Strategic Tools Control Pace of New Housing 2001 – Est. Growth Management Ordinance Moderate pace of housing development – particularly housing contributing to school & service capacity issues Establish Impact Fees & Mitigation 2002 - School Impact Fee on New Housing (varies based on unit type & impact) Traffic Impact Fees (‘95, ‘06, ‘11) Other Development Requirements

Growth Management Ordinance: Key Points Establishes “Annual Allocation” of 135 Growth Permits Limits individual developments to 20% of annual allocation Directs housing to growth areas (max. of 50 available for limited growth areas) Includes “Reserve Pool” of Permits - Special Projects: Developments using incentives (affordable housing & dev. transfer) Affordable housing projects Contract zones & previously approved projects

Growth Management Track Record

Growth Management Track Record

Impact Fee – Track Record $3.9 Million in School Impact Fees collected & used for debt service since 2001 Transportation Impact Fees: Payne Rd/114 Area $2.6 Million Dunstan Corner $590,000 Oak Hill $365,000 Haigis/Route 1 $215,000 Recreation Contributions – open space donations, fees to fund neighborhood parks etc.

Housing Dynamics ‘06 Comprehensive Plan – identified housing types, choices & diversity as high need Zoning followed – allowing housing variety in types, sizes, neighborhood styles & settings Housing market, lifestyles & economics – driving demand for housing diversity & MF living Millennials, singles, empty-nesters – interested in 1 & 2 bedrooms, attached housing & rental Developers are responding

Zoning has Matched Demand Diversity of MF projects – MF in mixed housing /use projects Avesta – affordable MF & historic preservation MF for independent elderly High-end MF MF in commercial areas

The Reserve Pool GM Ordinance Reserve Pool – 215 Permits Exists for special projects & zoning incentives Intended for projects that don’t work under annual allocation Hasn’t been in demand Now in demand Council to monitor & replenish

Reserve Pool Considerations We’ve zoned for these projects Majority of approved & pending MF projects – qualify for Reserve Pool permits Forecasted school & municipal demands – can inform treatment under GM Ordinance Likely valuations key factor Economic Development inter-play

School & Municipal Services Studio & 1 bedroom units = avg. 1.2 people 2 bedroom units = avg. 1.8 people 10% or less occupied by school-aged children School Facilities - Low contributor to school population & pay impact fees Public Works – Private development sites w/ private maintenance – low demands Public Safety – Will vary by project type – moderate demands

School & Municipal Services Community Services – Will vary by project – open space contribution & fees thru PB Transportation – Traffic less than commercial – impact fees & off-site improvements per PB review Traffic Peak Hr. Comparison Office = 2.1 Trips / 1000 SF Retail = 10.7 Trips / 1000 SF SF Dwelling = 1.1 Trips / Unit MF Unit = 0.65 Trips / Unit

Valuation Recent sale of older complexes = $160K/unit Projects proposed for HPZ generate similar values to commercial development Former Gateway Square could generate $27 to $45 million in valuation Positive ROI

MF as Economic Development Catalyst Creates interest & activity in development corridor Generates taxable value similar to commercial development Attracts workforce to Scarborough & region Creates opportunities for transit Sparks demand for goods & services

Summary GM Ordinance – Exists to pace housing construction to moderate impacts on school facilities & municipal services Zoning has allowed for range of housing types, styles & choices – development community responding to market & zoning 1 & 2 bedroom MF development – like office-style commercial development in value, low to moderate service demands & positive ROI Reserve Pool – Exists for MF type projects outside the annual allocation - if replenished

Next Steps MF Project Expected thru Contract Zoning – proposal for high-end MF project at former Gateway Square site December 21st TC Meeting Consider Increasing Reserve Pool Permits – to accommodate qualifying approved & proposed MF projects January TC Meetings Provide Follow Up Analysis & Response to Questions Ongoing