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HomeMy WebLinkAboutItem A: HB3337 Discussion ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: House Bill 3337 Meeting Date: January 16, 2008 Agenda Item Number: A Department: Planning and Development Staff Contact: Lisa Gardner www.eugene-or.gov Contact Telephone Number: 682-5208 ISSUE STATEMENT This work session was requested during the City Council consideration of the Planning Division work program for the fiscal year 2008 (FY08) to address specific questions regarding the requirements of House Bill 3337. BACKGROUND House Bill 3337 was passed by the Oregon State Legislature during the 2007 session, requiring the Cities of Eugene and Springfield to demonstrate that they have an adequate supply of residential lands within their urban growth boundary. The bill amends the needed housing statute to require that, unlike current practices, Eugene and Springfield are to meet their obligations under the needed housing statutes separately from each other. The bill also sets a two year deadline for Eugene and Springfield to have reached a particular point in the statutory process. The City Attorney’s office has prepared a memo responding to legal questions raised by the City Council during their consideration of the Planning Division work program. That memo is included as Attachment A. One of the questions previously raised by the council is not a legal question, and is addressed briefly here: What are the benefits of conducting a comprehensive lands assessment, including residential, commercial and industrial lands, as opposed to just meeting the minimum requirements of HB 3337 for residential lands? First, there would be efficiencies in conducting inventories of all three land categories, since demand calculations, data and public engagement processes can be shared. Second, the industrial lands inventory is 14 years old, and its effective period ends in 2010. The Commercial Lands Study is 15 years old, and its effective period also ends in 2010. If no inventory is adopted before those studies expire, it will be very difficult to make Statewide Goal findings under Goals 9 and 10 for any land use policy decisions the council makes after those analyses expire. Third, if the city only updates its residential inventory, it may limit its options in responding to the results of the inventory analysis, since it will not have updated information on the demand and supply of commercial and industrial land. For example, addressing a need for additional residential land by redesignating commercial or industrial sites would be more challenging without updated inventory information for commercial and industrial lands. Finally, a comprehensive lands assessment will support and be supported by current projects looking at natural resources, infill compatibility standards, opportunity siting and mixed use centers. Together with a comprehensive lands assessment, these projects will yield a multi-dimensional look at land use patterns and needs, and the varied set of tools needed to address them. F:\CMO\2008 Council Agendas\M080116\S080116A.doc A basic project outline has been prepared by ECONorthwest including key tasks, and estimated timeline and costs associated with the completion of a comprehensive lands assessment. The project outline is included as Attachment B. ECONorthwest estimates the costs to range from $200,000 to $315,000. An earlier outline and cost estimate was produced by Lane Council of Governments in December 2006, which estimated the costs to range from $145,000 to $240,000. RELATED CITY POLICIES Individual items within the work program implement the council policy direction to prioritize the FY08 Planning Commission and Planning Division work program. COUNCIL OPTIONS 1.Direct the City Manager to initiate a Comprehensive Lands Assessment based on the key elements in the attached project outline. The City Manager will fund this work through a combination of funding strategies including, but not limited to, state grants and existing resources including the reserve for revenue shortfall. 2.Revise, move, delete or add tasks in the attached project outline, and direct the City Manager to initiate a Comprehensive Lands Assessment based on the amended project outline. The City Manager will fund this work through a combination of funding strategies including, but not limited to, state grants and existing resources including the reserve for revenue shortfall. 3.Not direct the City Manager to initiate a Comprehensive Lands Assessment based on the attached project outline and provide other specific direction to the City Manager related to next steps for implementation of House Bill 3337. CITY MANAGER’S RECOMMENDATION The City Manager recommends Option 1: Direct the City Manager to initiate a Comprehensive Lands Assessment based on the key elements in the attached project outline. The City Manager will fund this work through a combination of funding strategies including, but not limited to, state grants and existing resources including the reserve for revenue shortfall. If the council approves the motion, as recommended, staff will proceed with initiating the Comprehensive Lands Assessment, with funding from a combination of state grants and existing resources, including the reserve for revenues shortfall. SUGGESTED MOTION Move to direct the City Manager to initiate a Comprehensive Lands Assessment based on the key elements in the attached project outline. The City Manager will fund this work through a combination of funding strategies including, but not limited to, state grants and existing resources including the reserve for revenue shortfall. ATTACHMENTS A.House Bill 3337 Memo from City Attorney’s Office B.Project outline and cost estimate for a Comprehensive Lands Assessment C.Memo from Gino Grimaldi regarding Coordination of House Bill 3337 Planning Responsibilities F:\CMO\2008 Council Agendas\M080116\S080116A.doc FOR MORE INFORMATION Staff Contact: Lisa Gardner Telephone: 682-5208 Staff E-Mail: lisa.a.gardner@ci.eugene.or.us F:\CMO\2008 Council Agendas\M080116\S080116A.doc Phone • (541) 687-0051 Suite 400 Other Offices FAX • (541) 344-0562 99 W. 10th Avenue Portland • (503) 222-6060 info@eugene.econw.com Eugene, Oregon 97401-3001 Seattle • (206) 622-2403 January 3, 2008 TO: Eugene Planning and Development Department FROM: Terry Moore and Bob Parker SUBJECT: PROJECT OUTLINE FOR A LAND NEEDS STUDY FOR EUGENE The 2007 Legislature passed House Bill 3337, which requires that the City of Eugene complete a study of the sufficiency of residential buildable land within the City’s Urban Growth Boundary (UGB) by December 31, 2009. The adopted FY08 Eugene Planning Commission Work Program includes an assessment of residential, industrial and commercial lands. This expanded study includes an inventory of buildable lands within the City’s UGB, an estimate of need for land for residential uses, an estimate of need for land for non-residential uses (primarily commercial and industrial, but also public), and a determination of whether the City has sufficient land within the UGB to meet the estimated residential and non-residential needs. We refer to these collectively as a “land needs study.” Planning staff of the City of Eugene asked ECONorthwest to outline key project components and estimate the costs of a land needs study for the City of Eugene. This memorandum provides a rough cost estimate. To do so, it describes the components of such a study and, broadly, what they entail. It is not, however, a full scope of work. The remainder of this memorandum is organized into the following sections: ? Assumptions: from City staff and from ECONorthwest about conducting the study. ? Structure of an RFP: three ways to think about structuring the RFP and the budget. ? Key Tasks, Budget and Schedule: a range of costs for the components of the study and a rough schedule for completing the study. A SSUMPTIONS The following assumptions about the land needs study are based on discussions between Planning and Development Department staff and ECONorthwest: ? Public involvement is essential. The City will want a variety of opportunities for meaningful public involvement throughout the process. Public involvement should begin early in the project and include opportunities for providing input on the assumptions used in the study (e.g., development density or housing mix), and the methods that will be used to do the analysis. The public involvement process should coordinate with on-going ECO: Project Outline for Land Needs Study January 2008 Page 2 public involvement processes in the City, such as committees that are working on infill compatibility standards and identifying opportunity sites for infill development. ? A consultant will lead the public involvement process. The consultant conducting the buildable lands study will manage and lead the public involvement process with logistical and other support from City staff. ? Frequent updates to the Planning Commission and City Council will be necessary. The City Council will want frequent updates on the project process and opportunities to provide direction on the process. The Planning Commission will advise the City Council. ? Technical analysis is the focus of the study. The study will focus on completing the land needs study, which is a largely technical exercise. Policy decisions about how to address a shortage of land in one or more categories (if this is shown to be necessary by the land needs study) will occur after this study and are not part of the work plan or budget for the intended RFP. ? Data format. The consultant will work with City staff to ensure that data is formatted and organized as required by the City, and data format specifications will be included in the intended RFP. ? GIS data may be used to develop a “dynamic” land inventory monitoring system. Although developing a monitoring system is not part a land needs study, the tax-lot- specific GIS data developed during this study may be used to develop a land inventory database that can be updated based on administrative data like building permits (a “dynamic” model). If the city intends to pursue a dynamic monitoring system, database design requirements will be incorporated into the intended RFP. ECONorthwest has substantial experience conducting buildable lands studies in Oregon. Based on our experience, we made the following additional assumptions about the study: ? Different groups will be involved in the study. The study will require input from four broad categories of people: (1) elected officials, (2) planners and other technical people from the City, Lane County, Springfield, LCOG, and DLCD, (3) interested stakeholders, and (4) and the general public. Some of these groups will be involved in the study through the formal public involvement process and some will be involved informally through work on the technical parts of the study. ? The public involvement process should have multiple opportunities for engaging decisionmakers, stakeholders, and citizens. The people giving input on the study are likely to understand the land needs analysis process at different levels and want a variety of opportunities for involvement. The public involvement process could include some or all of the following types of involvement: meetings and worksessions with the City Council and/or the Planning Commission, work with an advisory committee, interviews with knowledgeable stakeholders, on -line surveys, focus groups, public workshops, and other types of public involvement. ? Policy decisions are necessary for the study. The land needs study will require discussions and decisions about the assumptions used in the technical analysis, including ones relating to residential density, housing mix, infill and redevelopment, and commercial and industrial mix. Development of these assumptions will involve public involvement and direction from staff and elected officials. ECO: Project Outline for Land Needs Study January 2008 Page 3 ? The process is complex and will take a substantial amount of time. Land need studies are complicated and often take longer than cities expect. Completing the land needs study by December 31, 2009 is ambitious but achievable, assuming the City begins the process soon. We have included a rough schedule for the study at the end of this memorandum. SRFP TRUCTURE OF AN There are three common ways for structuring a buildable lands study RFP: by topic, by chronology, or by product. ? Topic. The RFP for this study could be structured by the following topics: (1) leading the public involvement process, (2) developing methods and assumptions, (3) collecting data, (4) performing the data analysis, and (5) producing the final products. This method for structuring the RFP focuses on the technical aspects of the study and is readily understandable to planners and people familiar with conducting buildable lands studies. ? Chronology. The RFP for this study could be structured based on sequential tasks. A typical structure is: (1) refine scope and methods; (2) collect data; (3) analyze the data; (4) draw and debate draft conclusions; (5) prepare and adopt a final report with policy direction. ? Products. The RFP for this study could be structured by the interim and final products of the study: (1) public involvement process, (2) buildable lands inventory, (3) economic opportunities analysis, (4) housing needs analysis, and (5) determination of the sufficiency of buildable lands. In the rest of this memorandum we use the third organization. It is easily understandable to planners, elected officials and informed stakeholders, and people familiar with buildable lands studies. It makes the cost of each product explicit and may allow the City to decide to prioritize elements of the study by providing more funding for the higher-priority products. It is the organization used by the DLCD in technical assistance grants and was used by LCOG in its estimate for a buildable lands study in Eugene (December 4, 2006). ECO: Project Outline for Land Needs Study January 2008 Page 4 KEYTASKS,B UDGET AND SCHEDULE B UDGET Product Cost Range Public involvement process $80,000 to $120,000 This task addresses Goal 1 requirements. Based on discussions with City staff and our experience (both with land needs studies and in Eugene), we expect the public involvement process will be extensive, as described earlier in the memorandum. The cost of this task is for consultant time and does not include City staff time (which could be substantial). Buildable lands inventory $40,000 to $75,000 This task will address requirements of Goal 14 and OAR 660-024. This task will establish a supply of buildable land within Eugene’s UGB. This estimate assumes that the consultant will build from the 2006 Supply of Commercial and Industrial Land in Lane County. The cost of a buildable lands inventory depends on the availability and quality of the data. This estimate assumes that the City of Eugene is able to provide good quality data. The City may want to verify the accuracy of the inventory, through comparison of the land inventory with aerial photographs and field verification (where sites are visited to verify development status). The cost of field verification performed by a consultant is between $10,000 to $25,000 and is reflected in the estimated cost of the buildable lands inventory. Economic Opportunities Analysis (EOA) $40,000 to $60,000 This task addresses requirements in Goal 9 and OAR 660-009. This task includes an economic opportunities analysis and development of an economic development strategy. The EOA must identify site needs based on the community economic development strategy. This task will establish the 20-year demand for non-residential land. Housing Needs Analysis $30,000 to $40,000 This task will address requirements in Goal 10, OAR 660-008, and ORS 197.296. This task will establish the 20-year demand for residential land. Comparison of land supply and demand $10,000 to $20,000 This task will address requirements of Goal 14 and OAR 660-024 to determine whether there is sufficient land within Eugene’s UGB to provide a 20-year supply of non-residential and residential land. The comparison will be based on the land supply identified in the buildable lands inventory, the demand for land estimated in the EOA and housing needs analysis, and an estimate of demand for public and semi-public uses. Total cost estimate $200,000 to $315,000 S CHEDULE Table 1 shows a rough schedule for completing the buildable lands study. The schedule assumes that the City issues the RFP in the March of 2008 and selects a consultant by May 2008. ECO: Project Outline for Land Needs Study January 2008 Page 5 Table 1. Rough schedule for the buildable lands study, by quarter 20082009 TaskQ 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4 RFP issued and consultant selected Project Start Public Involvement EOA Methods & Assumptions Data collection Analysis Report Housing Needs Analysis Methods & Assumptions Data collection Analysis Report Comparison of Supply and Demand The schedule shows the public involvement task extending from the Third Quarter of 2008 through the Fourth Quarter of 2009. The public involvement tasks would be more intensive earlier in the project, to focus policy decisions about assumptions used in the EOA and Housing Needs Analysis. In the later part of the project, the public involvement would mainly consist of meetings with the advisory committee and elected officials.