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HomeMy WebLinkAboutItem A: Eugene Comprehensive Lands Assessment ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Eugene Comprehensive Lands Assessment Meeting Date: August 10, 2009 Agenda Item Number: A Department: Planning and Development Staff Contact: Jason Dedrick www.eugene-or.gov Contact Telephone Number: 541-682-5451 ISSUE STATEMENT This work session is an opportunity for the City Council to receive a project update on the Eugene Comprehensive Lands Assessment (ECLA), and approve the remaining baseline assumptions that are used to estimate future land needs. BACKGROUND The goal of ECLA is to determine whether Eugene has a sufficient supply of land within the Urban Growth Boundary (UGB) to meet the projected demand for residential, commercial, industrial and public/semi-public land over the next 20 years. This study addresses Oregon House Bill 3337, which directed the City of Eugene to undertake a study of residential lands sufficiency. The scope was expanded by the City Council to assess all land types, including employment lands (commercial and industrial) and public/semi-public land needs. In April, the council held a work session on ECLA to review many of the assumptions associated with the analysis. This work session is an opportunity for the council to review the remaining assumptions. Project Update land supplylandneed Work has continued on the and (demand) analysis since the City Council’s April 27, 2009, work session. A summary of these components is presented in Attachment A. The current land supply is being determined through an analysis of lands within the UGB that are currently vacant or otherwise able to accommodate additional growth. This analysis continues to be refined and will be presented to the council at a future date. land need The (demand) is being determined through an analysis of historic trends, current policies and forecasts for employment, housing and public lands. Recent work on land need includes analysis of preliminary data and assumptions related to the employment land needs, residential land needs, and public/semi-public land needs. All preliminary data and assumptions have now been presented to the groups that are advising staff on this, the Agency Technical Advisory Committee (TAC) and the Community Advisory Committee (CAC). Attachment B provides a list of committee members. Key Assumptions The analysis to establish baseline assumptions for land need is built on: ? key assumptions that are guided by state statute; ? historical and recent trends; ? recent data and forecasts (city, state, etc.); and ? current policies. Z:\CMO\2009 Council Agendas\M090810\S090810A.doc The baseline assumptions used in the land needs analysis are organized into three categories: employment land needs, residential land needs, and public and semi-public land needs. A summary of the baseline assumptions and recommended values is presented in Attachment C. This is an update to the same summary that you received in April, with the addition of information that was not available at that time. Further detail on each of these assumptions is provided in Attachment D. Committee New comments, staff input, and consultant expertise helped produce the values for each key assumption. information has been provided in both Attachments C and D, on the following items: new employment accommodated by infill and redevelopment, housing mix, housing density, residential infill and residential redevelopment. Next Steps The baseline assumptions will become the foundation of determining the land need. Variations on these assumptions will be developed for a few variables where committee input was divergent, provided that these variations are within the reasonable ranges provided in Attachment C. This process will conclude with the land need determination by the end of the year. Additional council updates are tentatively planned for September and November as products become available. Special presentations to community organizations will take place in late summer and public workshops are currently scheduled for September. An updated project timeline is included in Attachment E. Two components of ECLA have been funded by a grant from the Department of Land Conservation and Development (DLCD) that concludes this summer. Draft versions of the Economic Opportunity Analysis and the Housing Needs Analysis produced by our consultants must be approved by the City to receive these grant funds. Acceptance of these documents is scheduled as a consent calendar item on August 10. Although each of these documents will be presented in draft format at this time, they will be presented again with more complete information this fall after opportunity for public involvement. The completion of the land assessment will address Eugene’s compliance with HB 3337, completing the technical phase of a larger planning process. If the study determines that additional lands will be needed to accommodate projected growth, the City will need to initiate a process for addressing these needs, either through infill and redevelopment policies, UGB modifications or some combination of both. This process would contain ample opportunities for engaging the community in a dialogue about how to accommodate future growth. RELATED CITY POLICIES ? The City Council has included ECLA as a priority item on the Planning Division Work Program. ? Growth Management Policies are related to ECLA, most notably policies 1, 2, and 5. Policy 1 – Support the existing Eugene Urban Growth Boundary by taking actions to increase o density and use existing vacant land and under-used land within the boundary more efficiently. Policy 2 – Encourage in-fill, mixed-use, redevelopment, and higher density development. o Policy 5 – Work cooperatively with Metro area partners (Springfield and Lane County) and other o nearby cities to avoid urban sprawl and preserve the rural character in areas outside the urban growth boundaries. Z:\CMO\2009 Council Agendas\M090810\S090810A.doc COUNCIL OPTIONS Option A: Move forward with the baseline assumptions, expressed as recommended values in column 2 of Attachment C, for the analysis of future employment land needs, residential land needs, and public and semi-public land needs. Option B: Amend the baseline assumptions, expressed as recommended values in column 2 of Attachment C, for the analysis of future employment land needs, residential land needs, and public and semi-public land needs. Option C: Direct the City Manager to provide additional information regarding baseline assumptions, expressed as recommended values in column 2 of Attachment C, for the analysis of future employment land needs, residential land needs, and public and semi-public land needs. CITY MANAGER’S RECOMMENDATION The City Manager recommends Option A: Move forward with the baseline assumptions, expressed as recommended values in column 2 of Attachment C, for the analysis of future employment land needs, residential land needs, and public and semi-public land needs. SUGGESTED MOTION Move todirect the City Manager to move forward with the baseline assumptions, expressed as recommended values in column 2 of Attachment C, for the analysis of future employment land needs, residential land needs, and public and semi-public land needs. ATTACHMENTS A. Summary of Technical Analysis Components B. Project Committee Members C. Summary of Baseline Assumptions and Recommended Values D. Detailed Description of Baseline Assumptions E. Project Timeline FOR MORE INFORMATION Staff Contact: Jason Dedrick Telephone: 541-682-5451 Staff E-Mail: jason.p.dedrick@ci.eugene.or.us Project Website: www.eugene-or.gov/ECLA Z:\CMO\2009 Council Agendas\M090810\S090810A.doc ECLA PROJECT COMPONENTS Housing Economic Public/ Semi- Need Need Public Need + + Population growth Employment Schools ??? Gross = National and state growth Parks and open ?? housing trends National and state space ? Future Local housing economic trends Public facilities ?? Land Need development Local economic and operations ? trends advantages Churches ? (Demand) Public/Semi Demographic Site needs ? ?? Public Lands changes Current policies ? Economic Housing ?Memo ? Opportunities affordability Current policies Analysis report ? Housing Needs ? Analysis report Current Land - Supply GIS Data ? County Assessor’s ? Data Current Policies ? Buildable Lands ? ATTACHMENT A Inventory report Net Future = Land Need (Land Sufficiency) ATTACHMENT B Project Committee Members Eugene Comprehensive Lands Assessment Community Advisory Committee Member List Jon Belcher At-Large Howie Bonnett Eugene Sustainability Commission Merle Bottge Developed Parks Community Norton Cabell Eugene Housing Policy Board Paul Conte At-Large Rick Duncan Eugene Planning Commission (non-CAC member attendee) Kim Hyland At-Large Carolyn Jacobs Eugene Neighborhood Leaders Council Bill Kloos Eugene Area Chamber of Commerce Kevin Matthews City-Wide Local Advocacy Group Brent McLean Commercial/Retail Community Laura Potter Home Builders Association of Lane County Matt Powell Eugene Association of Realtors Erik Riechers Investment Community Jack Roberts Lane Metro Partnership John Winquist Natural Resource Community Agency Technical Advisory Committee Member List Barb Bellamy Eugene 4J Schools Neil Bjorklund Eugene PW Parks Savannah Crawford ODOT Terri Harding Eugene ICS & OS Projects Pat McGillivray Bethel Schools Ed Moore DLCD Steve Nystrom Eugene PDD Planning Jeannine Parisi EWEB Linda Pauly City of Springfield Chris Ramey University of Oregon David Roth Eugene PW Engineering Stephanie Schulz Lane County Tom Schwetz Lane Transit District Mike Sullivan Eugene PDD Development Bob Warren Oregon Economic & Community Development Department ATTACHMENT C Summary of Baseline Assumptions and Recommended Values The analysis to establish a baseline for future land need is built upon key assumptions that are guided by statute and rely on historical trends, recent information and current policies. Key assumptions used in the land needs analysis are organized into three categories: employment land needs, residential land needs, and public and semi-public land needs. The table on the next page presents a summary of these key assumptions for each of the three categories. Additional information on each of these assumptions is provided in Attachment D. Below are definitions to assist with interpreting this data: Acronyms and Abbreviations ? PD – plan designation ? EPA – employees per acre ? du/acre – dwelling units per acre ? ac/pkp – acres per thousand people ? PROS – City of Eugene Parks, Recreation and Open Space The highlighted Column 1: Variable – Name of each key assumption in Attachment D. variables are those that staff is asking for Council action on at this time. Column 2: Recommended Value – Current technical recommendation for the baseline assumption. This is a product of committee comments, staff input and consultant expertise. Column 3: Source of Data – In many cases there are multiple sources. For the sake of brevity, the primary source is shown in this table. Additional sources are provided in Attachment D. Column 4: Rationale – Reason for the data source or the value shown. In some cases safe harbor provisions in statute are utilized. Column 5: Reasonable Range – Statute implies that values utilized for determining land need be reasonable and defensible. Where possible, this column shows the potential range when there are multiple methods that can be utilized or some discretion involved. Column 6: Impact on Land Need – Each key assumption is an important variable in determining the land need in acres. Some of these variables have a larger impact on land need than others. A “high” impact on land need would indicate that changing the value for this variable could significantly decrease or increase overall land need, thus indicating its relative importance to the overall analysis. Column 7: Data Type – Point data is from a specific moment in time. Often this is census, state or City data with a date. Trend data indicates a longer period of time. 1 ATTACHMENT C Summary of Baseline Assumptions and Recommended Values Reasonable Impact on VariableRec. ValueSource of DataRationaleRangeLand Need Employment Land Needs Employment growth1.4%State of OregonSafe harbor0.9% or 1.4%High Share of Emp by TypeState of OregonCurrent mixVariesLow Industrial18.2%15.0% - 23.0% Commercial54.3%46.0% - 55.0% Retail13.1%13.0% - 15.0% New Employment in Non-employment PD15%State of OregonCurrent 10% - 20%Low New Employment in Existing Built Space10%City of EugeneOther cities5% - 15%Low Employment RedevelopmentCity of EugeneOther cities10% to 35%High Industrial10% Commercial15% Retail35% Employment DensityState of OregonCurrent averageVariesModerate Industrial13 EPA5-20 EPA Commercial68 EPA30-93 EPA Retail23 EPA20-37 EPA Converting net to gross20% (15%)City of EugeneCurrent average15% - 20%Moderate Residential Land Needs Population Growth0.9%Lane CountyAdopted ForecastNoneHigh Population in Group Quarters5.3%US CensusCurrent average4.4% - 5.5%Low Persons per Household2.25US CensusSafe harbor Difficult to Moderate Residential Vacancy Rate5%US CensusRecent data3.5% - 6.5%Low Housing mixCity of EugeneHistoric data & VariesModerate Single-family detached55%recent trends45% - 64% Mfg home in park6%5% - 8% Duplex3%3% - 5% Single-family attached7%7% - 10% Tri- and quadplex7%2% - 7% Apt. with 5-19 units12%8% - 13% Apt. with 20+ units10%7% - 13% Housing Density6.7City of EugeneRecent trendsAverage of High Single-family detached5.66.7-10.0 Mfg home in park3.9Dwelling units Duplex6.8per acre Single-family attached20.2 Tri- and quadplex7.8 Apt. with 5-19 units13.1 Apt. with 20+ units26.3 Residential redevelopment11%City of EugeneRecent trends11%High Net to Gross Factor20%City of EugeneCurrent average15% - 20%Moderate Public and Semi-Public Land Needs Park Land20.0 ac/pkpCity of EugenePROS PlanN/AHigh Neighborhood Parks1.7 ac/pkp Community Parks1.5 ac/pkp Natural Areas10.0 ac/pkp Other Parks6.8 ac/pkp SchoolsSchool DistrictsN/ALow 4J School District0 acres4J Bethel School District120 acresBethel Public Operations and Facilities100 acresCity of EugeneHistoric data100 - 260 acresModerate Semi-public uses50 acresCity of EugeneHistoric data25 - 75 acresLow Shading denotes those variables that will be discussed at today’s work session 3 ATTACHMENT D Phone • (541) 687-0051 Suite 400 Other Offices th FAX • (541) 344-0562 99 W. 10 Ave Eugene • (503) 222-6060 info@econw.com Eugene, Oregon 97401-3040 Seattle • (206) 622-2403 July 8, 2009 TO: Community Advisory Committee (CAC) FROM: Terry Moore, Beth Goodman, and Bob Parker SUBJECT: BASELINE ASSUMPTIONS AND PRELIMINARY LAND NEED ESTIMATES 1 B ACKGROUND ECONorthwest is conducting the Eugene Comprehensive Lands Analysis (ECLA). Though there are many reasons for conducting such an analysis, the main one directing the content and timing of the analysis is Oregon House Bill 3337, which requires Eugene to establish its own Urban Growth Boundary (UGB) separate from the joint metropolitan UGB that Springfield and Eugene has shared for about 25 years. The full scope of work for ECLA is described elsewhere. It includes creating many products to comply with state requirements for LCDC Goals 9, 10, and 14: a Buildable Lands Inventory (BLI), an Economic Opportunity Analysis (EOA), and a Housing Needs Analysis (HNA). Those interim products (and others) must eventually lead to a comparison of estimates of the need / demand for buildable land (to accommodate employment and residential growth) to the estimates of the amount of buildable land for the City of Eugene. That comparison of land need to land supply will be the basis for a determination about whether land inside the Eugene portion of the existing metropolitan urban growth boundary is sufficient to accommodate Eugene’s expected growth. That determination is where this project will end in December 2009. If the result is that land inside the UGB is unlikely to be sufficient to meet demand, the City of Eugene will subsequently evaluate policies that might expand the capacity of land inside the existing UGB (e.g., by increasing density), add land to the UGB, or both. House Bill 3337 requires that Eugene establish a UGB and “demonstrate, as required by ORS 197.296, that its comprehensive plan provides sufficient buildable lands within an urban growth boundary established pursuant to statewide planning goals to accommodate estimated needs for 20 years.” The scope of work for ECLA housing 1 House Bill 3337 was codified in ORS 197.304. Emphasis added. 1 ECLA: Baseline Assumptions ECONorthwest July 2009 Page 2 provides further direction. First, the Eugene City Council expanded the analysis to look not just at land (housing needs), but at land as well. Second, the residential employment scope is about collecting data and making extrapolations of land need based on existing policy and on market conditions and trends; it is not about researching, recommending, or adopting policies that could change those trends. That last point led to a scope of work for 2008-2009 that is only part of a full UGB evaluation. It makes the analysis sequential rather than simultaneous. It does not work back and forth between estimates of land need, new policies that might change land need (e.g., policies to increase density), and new estimates of land need. Rather, it aims at making a determination of whether historical trends in growth and the type of land development that accommodates that growth (or divergences from those trends based on reasonable expectations about changes in market conditions) would result, over 20 years, in an amount of buildable land consumption that is equal to or less than the amount of buildable land estimated to be in the existing UGB now. If so, then the City can use that determination to meet the requirements of HB 3337. If not, the City will probably need to do additional work to either (1) identify land-use efficiency measures to accommodate expected growth, (2) expand the UGB, or (3) both. The discussion of land-use efficiency measures or UGB expansion is beyond the scope of this project and beyond 2009. The scope of this project is limited to the collection and assessment of existing data to (1) estimate the existing supply of buildable land inside the Eugene portion of the current UGB, and (2) forecast the need for buildable land based on an extrapolation of recent market trends in the context of existing City policy (or reasonably expected changes in those market trends in the context of existing policy). If the analysis in this study demonstrates that the City is unlikely to have sufficient land within the UGB, that does mean that the City must expand its UGB. Rather, it not means that the City must take another step to make that determination: it must identify, evaluate, and discuss policies it could adopt to reduce the land deficiency. The City’s ultimate determination of whether the UGB needs to be expanded must be done in the context of policies that it will adopt that can reasonably be assumed to reduce the need for that expansion (these policies are referred to collectively as “land –use efficiency measures”). Evaluation of efficiency measures, if required, will occur in 2010 and beyond. The written products for this project will ultimately comprise dozens of analyses, tables, and maps. Making sense of them as an integrated analysis is difficult enough for people involved in the analysis, and more difficult still for community members who want to understand the implications for City land-use policy at a general level. With that point in mind, ECONorthwest proposed in its work plan that the technical information be consolidated and represented in land-use scenarios. The most important land-use scenario, and the one that the staff technical work and CAC review has ECLA: Baseline Assumptions ECONorthwest July 2009 Page 3 focused on, is the one related to historical trends and current policies in land use consumption (referred to as scenario). Where there is uncertainty or the baseline reasonable differences of opinions about some of the assumptions that compose the baseline scenario, then the intent is to run some variations on this scenario to test how the need / supply comparison is affected. Those variations will be tested soon, but staff hope to have some direction from City Council that the information presented in this memorandum about the baseline assumptions provides a reasonable foundation from which to build those variations. This memorandum describes the land need based on historical data, which reflect the impact of current policies on development in Eugene. It presents the baseline assumptions based on historical data. Based on the CAC’s and TAC’s discussion of this material the consultant team will (1) do more work to refine the assumptions that define the need side the historical data analysis (ECO), (2) make final adjustments to the buildable lands inventory (LCOG), (3) define reasonable variations on the baseline assumption, and (4) combine the results of steps 1 – 3 to assess whether Eugene has enough land within the UGB to accommodate expected growth, given existing policies. The remainder of this memorandum discusses baseline assumptions in the land needs analysis. For each of the key assumptions it provides some introductory text to explain what the assumption is and how it fits into the needs analysis, and then summarizes information under four headings: ? Potential range of assumption: What is a reasonable, defensible range, and on what basis is that claim made? ? CAC and TAC discussion: What did the ECLA Community Advisory Committee and Technical Advisory Committee have to say about this assumption? ? Current technical recommendation for baseline assumption: Given the previous two points, what is this memorandum recommending as the baseline assumption? ? Data source: More information about the basis for the recommendation. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 4 2 B ASELINE ASSUMPTIONS In previous meetings and memoranda, ECONorthwest described the assumptions that are needed to model land need for the Eugene UGB over the 2010-2030 periods. Table 1 lists these assumptions; underlining denotes what ECONorthwest believes to be a key assumption. Key assumptions are those that (1) potentially have a large impact on land needs, and (2) are most likely to be affected by City policies. Subsequent sections of this memorandum provide information about baseline assumptions as they relate to historical data. Table 1. Baseline assumptions for modeling land need Residential land needs Employment land Public and Semi-Public needs Land Needs Population growth Employment growth Park Land Population in group Neighborhood Parks quarters Share of employment by Community Parks category Persons in household Natural Areas Industrial Residential vacancy rate Other Parks Commercial Housing mix Retail Schools Housing density Government 4J School District Net to Gross Factor Bethel School District New employment in non- Residential redevelopment Public Operations and employment PD Facilities New employment in Semi-public uses existing built space Commercial Redevelopment Employment Density Net to Gross Factor 2.1 E:B MPLOYMENT LAND NEED ASELINE ASSUMPTIONS The analysis of employment land need is driven by an analysis of employment growth, Eugene’s competitive advantages, the types of firms that may locate in Eugene, and the site needs of the firms that may locate in Eugene. The employment land need must meet the State requirements of Goal 9 and OAR 600-009. The framework for conducting the employment needs analysis is described in detail in the memorandum to the CAC “Framework for Determining Land Needed for Employment in Eugene: 2010-2030” (January 5, 2009). This section discusses the baseline assumptions necessary for determining the amount of land needed for employment over the 20-year planning period. Table 2 summarizes the evaluation of employment land need based on historical data and the rate of employment growth. The key assumption regarding the need for employment land is the forecast of the amount of employment growth, excluding ECLA: Baseline Assumptions ECONorthwest July 2009 Page 5 government employment growth (which is addressed through public land needs). Table 2 shows two columns of numbers for two different assumptions about the rate of employment growth. Those assumptions are discussed below. Employment land needs ranges from 598 to 887 acres. Table 2. Employment land need based on historical data, Eugene UGB, 2010-2030, for different assumptions about average annual growth rates (AAGR) Slower Historical Emp. DataGrowth 1.4% 0.9% AAGRAAGR Variable Employment Forecast Total Employment Growth 34,477 20,360 Increases in Employment Density % of new emp. accomodated on land not designated for employment Industrial0%0 Commercial15%15% Retail15%15% % of new employment accomodated in existing built space Industrial10%10% Commercial10%10% Retail10%10% % of new employment accomodated through infill & redevelopment Industrial10%10% Commercial15%15% Retail35%35% Total Employment on New Land 21,096 12,457 Number employees not requiring new land(13,381)(7,902) % employees not requiring new land-39%-39% Employment Density (employees per net acre) Industrial1313 Commercial6868 Retail2323 Net to Gross Industrial15%15% Commercial20%20% Retail20%20% Land Need (Gross Acres) Industrial 531 313 Commercial 241 142 Retail 115 68 Total Gross Acres Needed 887 524 Difference from Historical Trend0(363) Percent Change from Historical0%-41% Source: ECONorthwest Note: We excluded government employment growth from the calculations in Table 2 because government land need is accommodated through public and semi-public land needs. Note: Numbers in red and parentheses are negative. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 6 The bottom lines of Table 2 illustrate an obvious point: if one assumes that there will be a lot less employment growth, then a lot less land will be needed. We are not ready to make a firm statement about whether Eugene has enough land to accommodate expected employment growth because we are still refining the buildable lands inventory. But combining the acreage requirements at the bottom of Table 2 with the draft results of the BLI shows a net deficit of buildable land for commercial land and a surplus for industrial land (but special site needs are considered, which could before lead to a conclusion that the existing UGB lacks sites of a size and location suitable for certain types of employment growth). Those conclusions are only as good as the assumptions they are based on. The origin and assessment of the baseline assumptions in the employment land need estimate in Table 2 are described below. Employment growth Employment growth is the amount of growth in jobs reasonably expected in Eugene over the 2010 to 2030 period. We exclude government employment growth because government land need is accommodated through public and semi-public land needs, evaluated separately. Changes in the forecast of employment growth directly result in changes in need for employment land. There is no single “right” way to forecast employment growth. There are, however, two methods for forecasting employment growth that, independent of their technical merits, are legally sanctioned as “safe harbors”: (1) assume that employment will grow 2 at the same rate as population (OAR 660-024-0040(8)((a)(ii)), or (2) assume that employment will grow at the same rate as the Employment Department’s forecast for Lane County. ? Potential range of assumption: Assuming that employment will grow at the same rate as population (a 0.9% annual growth) results in addition of about 20,000 jobs. Assuming that employment in Eugene will grow at the same rate 3 as the one used in the Employment Department’s forecast for Lane County (a 1.4% annual growth rate) results in the addition of about 34,500 jobs, not including government jobs, which are accounted for in public and semi-public land needs. ? CAC and TAC discussion: Several CAC and TAC members said the assumption that Eugene’s employment will grow at the rate forecasted for Assumptions that serve as amulets that can be raised against the gale of future legal challenges to protect a 2 jurisdiction from being blown out of the water. This assumption is based on the population forecast for the Eugene UGB presented in the “Lane County Rural 3 Comprehensive Plan General Plan Policies 1984”, updated June 2009. Population in the Eugene UGB is forecast to grow at about 0.88% annually. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 7 Lane County (1.4% annual growth) is reasonable, and probably the more reasonable of the two growth rates. Eugene is the central city and employment center of the region: it is reasonable to expect employment to grow faster than population. On the other hand, a difference in growth rates suggests greater commuting to Eugene from outlying cities (e.g., Veneta). ? Current technical recommendation for baseline assumption: We recommend assuming 1.4% annual employment growth, based on: (1) the assumption that Eugene is the regional economic center of Lane County and likely to have the greatest employment growth, and (2) average employment growth in Lane County over the 1980 to 2007 was 1.7% average annual growth. ? Data source: The employment base is a point in time estimate for 2006 based on: Quarterly Census of Employment and Workforce from the OR Employment Department and Total Employment in Lane County from the US Bureau of Economic Analysis. Distribution of employment by land-use type The forecast of employment growth can be divided into broad categories of land use based on the characteristics of land needed: commercial office, commercial retail, industrial, and government. In 2006, the share of employment in each of these categories was: 54.3% commercial, 13.1% retail, 18.2% industrial, and 14.4% government. 4 ? Potential range of assumption: There is no “correct” way to forecast the future composition of Eugene’s economy. Possible approaches are: Assume the future composition of Eugene’s economy will look like the o present and use the existing distribution of employment by land-use type; Assume that employment in non-industrial sectors will grow more than o employment in industrial based on County, State, and national historical trends. An example of the shift in the mix: 55% commercial, 15% retail, 15% industrial, and 15% government; or Use the mix of employment forecast in the Employment Department’s o forecast for Lane County: 46% commercial, 13% retail, 23% industrial, and 18% government. ? CAC discussion: Some CAC members said that the current mix of employment seems more likely to continue into the future than the mix in the Employment Department’s forecast for Lane County. Growth in government employment is accounted for through the public and semi-public land needs process, 4 rather than through the employment land needs analysis. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 8 ? Current technical recommendation for baseline assumption: We recommend assuming that the future mix of employment will be similar to or the same as the current mix of employment. The mix of employment forecasted by the Employment Department for Lane County, with greater growth in industrial sectors and decrease in share of commercial sectors, seems unlikely given long- term economic trends and recent economic trends in Eugene and Lane County. Note that the effect of this assumption is diminished to some degree by the fact that the of employment does not change—the changes. amountcomposition Thus, the same number of employees will need built space to work in, which will need land be constructed. The difference is that the density of employment growth will be different for some types of development. But the differences in density among commercial office, retail, and government are relatively small, so shifting among those has little impact on land need. The bigger effect comes from shifts between those categories and industrial, which has lower density. ? Data source: The employment base is a point in time estimate for 2006 based on Quarterly Census of Employment and Workforce from the OR Employment Department and Total Employment in Lane County from the US Bureau of Economic Analysis. New employment accommodated on land not designated for employment Some employment is now accommodated on land that is located in a residential or other non-employment plan designation. In 2006, about 15% of covered employment 5 was located in residential and other non-employment designations. This includes businesses located in non-employment plan designations (such as a corner store in a neighborhood) and people working from home. This estimate excludes workers that are not covered by unemployment insurance, such as sole proprietors. Although these workers may be more likely than covered employees to locate on land with non- employment designation, we do not have information about where non-covered workers are located. In the absence of this information, we assumed that covered and non-covered workers will locate on land in non-employment plan designations in the same proportions and that 15% of all employment will locate on land in non- employment plan designations. ? Potential range of assumption: There is little information available about the amount of employment accommodated on land not designated for employment in Eugene, beyond the data reported above. In work for other employment is employment that the state tracks because it is covered by unemployment insurance and Covered 5 reported. Covered employment information is available at the city-level. employment, which includes all Total employment, is tracked by the U.S. Bureau of Labor Statistics and is not available at the city-level. Comparison of covered and total employment in Lane County showed that covered employment was 75% of total employment in the County in 2006.Covered employment excludes sole proprietors and other workers not covered by unemployment insurance. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 9 Oregon cities, ECO has generally estimated or assumed that between 10% and 20% of employment is accommodated in residential or other non-employment plan designations. ? CAC and TAC discussion: Some CAC and TAC members suggested that the share of employment accommodated on land not designated for employment uses may increase in the future, based on trends in working from home. ? Current technical recommendation for baseline assumption: We recommend assuming that 15% of non-industrial employment will accommodated on land not designated for employment. The basis for this recommendation is that the 2006 covered employment data is the best available and we have little data as a basis for assumptions about changes in the amount of employment that may locate in non-employment designations in the future. ? Data source: The estimate of 15% of covered employment on land not designated for employment is based on employment data from 2006. The data source for the employment base was Quarterly Census of Employment and Workforce from the OR Employment Department, overlaid with the LCOG GIS data showing the City of Eugene Plan Designations. New employment accommodated in existing built space As firms add employees they may fit many of them into existing office spaces. That would occur if current vacancy rates were much higher than average (because future employment growth could then be partially accommodated in existing space until and natural, frictional vacancy rate was reached). It could also occur in occupied buildings through filling vacant cubicles or offices or increasing density of use existing workspaces (e.g., by adding new cubicles). There is no study that quantifies how much employment is commonly accommodated in existing built space over a 20-year period in a city. ? Potential range of assumption: There is no data that document the amount of employment locate in existing built space. Clearly some employment is accommodated through this type of intensification of use but, equally clearly, not all employment can be accommodated this way. ECO typically assumes that 5% to 10% of employment will be accommodated in existing built space. Obviously, such an assumption cannot apply indefinitely, so it presumes that (1) the use of existing space is not so intense that it cannot be economically increased, and (2) economic conditions, competitiveness, and standard business practices for reducing cost make a 5% to 10% increase in space utilization reasonable. ? CAC and TAC discussion: CAC and TAC have not discussed this assumption in great enough depth to have suggestions for different assumptions from more than one committee member. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 10 ? Current technical recommendation for baseline assumption: We recommend assuming that 10% of new employment will locate in existing built space. ? Data source: ECONorthwest has typically assumed that about 10% of employment would locate in existing built space for similar studies in other cities. The rationale for this assumption is: (1) in the short-term, commercial vacancy rates are likely to be higher than normal (because of the current recession) and (2) existing firms have a large incentive to accommodate new employees in their existing offices because of the cost of moving and leasing additional office space. New employment accommodated through redevelopment Goal 9 strongly encourages cities to develop policies to encourage redevelopment of commercial and industrial land, especially brownfields. Redevelopment is any development that happens on land that has been classified as developed (i.e., not vacant). This definition is consistent with the definition of developed land in OAR 660- 009. For the purposes of this study, we define redevelopment as development that (1) occurs on land with existing development, (2) results in a net increase in and employment density. The second condition means that the replacement of a building used for employment by a new building with similar employment density would not be counted as redevelopment. This definition includes infill on partially vacant land. We can see that redevelopment has occurred in Eugene over the last 20-years. Retail redevelopment is especially common, such as the redevelopment that has occurred along Coburg Road, like Oakway Center. We can reasonably assume that some employment growth will be accommodated through redevelopment of existing commercial and industrial land over the next 20-years. Determining how much redevelopment has actually occurred is difficult because data about redevelopment (or indicators of redevelopment) are not maintained. While the City collects data for industrial and commercial building permits, there is no way to determine which if these permits was issued for redevelopment of a site, short of sorting through the permits one-by-one. We could estimate redevelopment using assumptions about land value and potential to redevelopment (a method that is similar to the method describe for residential redevelopment in Appendix C), this methodology provides a gross indicator of redevelopment potential but little indication of how much redevelopment is to occur over the planning period. likely As a result, we do not have a factual basis to estimate the amount of employment growth that may be accommodated through redevelopment. In previous studies conducted by ECONorthwest and other organizations, redevelopment has been addressed by assuming that a certain percentage of employment growth will be ECLA: Baseline Assumptions ECONorthwest July 2009 Page 11 addressed through redevelopment, generally from 5% to 20% of new residential development. 6 ? Potential range of assumption: We found no studies or data that attempt to estimate the amount of commercial and industrial infill and redevelopment that occurred in Eugene over the past decade. It is clear, however, that infill and redevelopment occurred, especially along Coburg Road. A 2002 study in the Portland Metro area suggest that about 26% of employment land would be accommodated through redevelopment over the 2002-2022 period. 7 ? CAC and TAC discussion: CAC and TAC have not discussed this assumption in great enough depth to have suggestions for different assumptions from more than one committee member. One TAC member suggested that the most appropriate places for redevelopment is in mixed use centers and downtown. ? Current technical recommendation for baseline assumption: Our preliminary recommendation is to assume redevelopment of 10% of forecast industrial employment, 15% of commercial employment, and 35% of retail employment. ? Data source: No data about commercial and industrial redevelopment is currently available. Employment density Employment density is the density of employment (measured in employees per acre) locating in commercial and industrial plan designations. Forecasting employment land need based on forecasts of employment growth requires a conversion, either explicit or implicit, of employment growth (number of new employees) to land need based on assumptions about employment density. This can be accomplished through use of assumptions about the number of employees per acre (EPA). In 2006, Eugene’s overall employment density was 22 employees per acre. Employment densities in Eugene varied by use and mixture of uses, as follows: ? Industrial densities ranged from about 5 employees per gross acre (EPA) in heavy industrial areas to nearly 20 EPA in light or campus industrial. ? Commercial densities varied from 30 EPA in mixed retail and office sites to 93 EPA in downtown. ? Retail densities varied from about 20 EPA to about 37 EPA at Oakway Center. ECONorthwest used this method in studies for the following cities: Ashland, McMinnville, The Dalles, 6 Pendleton, Ontario, and Sandy. Metro uses a “refill”rate to account for employment accommodated through redevelopment. In Metro’s 2002 Urban Growth Report, they assumed a refill rate of about 26% for commercial and industrial lands. Metro’s “2002-2022 Urban Growth Report: an Employment Land Needs Analysis,” December 2002. Accessible 7 from http://library.oregonmetro.gov/files/ugr-employment.pdf ECLA: Baseline Assumptions ECONorthwest July 2009 Page 12 Existing employment densities are documented more completely memorandum “Preliminary Estimate of Employment Land Need in Eugene During the 2010-2030 Period” (dated February 5, 2009). ? Potential range of assumption: The potential ranges of assumptions are described above. ? CAC and TAC discussion: CAC and TAC did not have many comments or questions about the employment density data presented. ? Current technical recommendation for baseline assumption: We recommend making the following assumptions about employment density, based on the average densities in Eugene: 13 EPA for industrial, 68 EPA for commercial, and 23 EPA for retail. ? Data source: Employment densities are based on employment in 2006 from the Quarterly Census of Employment and Workforce from the OR Employment Department, City of Eugene Plan Designations, and LCOG GIS data about land in employment plan designations. Converting net acres to gross acres The data about employment density presented above is in acres, which does not net include land for public right-of-way. Future land need for employment should include land in tax lots needed for employment plus land needed for public right-of-way. One way to estimate the amount of land needed for employment including public right-of- way is to convert from to acres based on assumptions about the amount of land netgross needed for right-of-way. A net to gross conversion is expressed as a percentage of 8 gross acres that are in public right-of-way. For example, a net to gross conversion factor of 15% means that 15% of gross acres are in public rights-of-way. ? Potential range of assumption: We examined net to gross ratios for existing commercial and industrial development on selected sites within Eugene. We found the following net to gross factors: Commercial sites had a net to gross factor ranging from: about 17% in o community retail centers, 31% in Downtown, and 34% in the area directly south of Downtown Eugene. Industrial sites had a net to gross factor averaging about 14%, with no o substantial different between light and heavy industry. OAR 660-024-0010(6) uses the following definition of net buildable acre. “Net Buildable Acre” consists of 43,560 8 square feet of residentially designated buildable land after excluding future rights-of-way for streets and roads. While the administrative rule does not include a definition of a gross buildable acre, using the definition above, a gross buildable acre will include areas used for rights-of-way for streets and roads. Areas used for rights-of-way are considered unbuildable. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 13 Work with other cities has shown similar net to gross factors. ECO typically assumes a net to gross factor of 15% to 20% for employment lands. ? CAC and TAC discussion: CAC and TAC did not provide comments on the net-to-gross factor. ? Current technical recommendation for baseline assumption: We recommend assuming a 20% net-to-gross factor for commercial land need, based on the assumption that future commercial employment will be in areas more like community retail centers and less like Downtown. These areas will need less land for public rights-of-way. We recommend assuming a 15% net-to-gross factor for industrial land need, which is consistent with observed need for public rights-of-way in industrial areas in Eugene. ? Data source: The net-to-gross factors are based on data from the 2006 Quarterly Census of Employment and Workforce from the OR Employment Department and City of Eugene Plan Designations. This assumption is generally consistent with the assumptions in the MetroPlan about land needed for public rights-of- way. 2.2 R:B ESIDENTIAL LAND NEED ASELINE ASSUMPTIONS The analysis of residential land need is driven by an analysis of housing need. The housing needs analysis must meet the State requirements of Goal 10, ORS 197.296, and OAR 600-008. The framework for conducting the housing needs analysis is described in detail in the memorandum to the CAC “Framework for Determining Land Needed for Housing in Eugene: 2010-2030” (February 5, 2009). This section discusses the baseline assumptions necessary for determining the amount of land needed for housing over the 20-year planning period. Table 3 shows land need using for two variations of housing need: (1) using the housing mix from housing development over the 2001 to 2008 period and (2) using the housing mix for Eugene’s housing stock in 2007. Based on the assumptions used in Table 3, Eugene will need between approximately 2,400 to 2,500 acres of residential land. Key assumptions in Table 3 are still under discussion, such as the rate of redevelopment. In addition, the categories of housing type are also under discussion (see page 20 of this memorandum) and may change in subsequent analysis. We are not able to determine whether Eugene has enough land to accommodate expected residential growth yet. Based on the preliminary results of BLI, it is likely that Eugene does not have enough residential land to accommodate expected growth given the assumptions in Table 3. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 14 Table 3. Residential land need based on historical trends, Eugene UGB, 2010-2030 Historical Data Housing Housing Mix 2001-Mix in 20082007 Variable Population growth34,00834,008 Population in Group Quarters1,8701,870 Population in Households32,13832,138 Avg HH Size2.252.25 Occupied Dwellings14,28314,283 Vacancy rate5.0%5.0% Total Needed Dwellings14,99814,998 Housing mix Single-family detached64%55% Manufactured home in park5%6% Duplex3%3% Single-family attached10%7% Tri- and Quad-plex (3 or 4 units)3%7% Apartments with 5 to 19 units8%12% Apartments with 20 or more units7%10% Average Density (DU/gross ac) Low Density Residential4.24.1 Medium Density Residential8.57.6 High Density Residential25.623.8 Average5.35.5 Land Need Accomodated through Infill and Redevelopment Low Density Residential11%11% Medium Density Residential11%11% High Density Residential11%11% Total Land Needed for Housing (acres) Low Density Residential2,1421,944 Medium Density Residential284355 High Density Residential76112 Total Gross Acres Needed 2,502 2,411 Difference from Historical Trend0(91) Percent Change from Historical 0%-4% Source: ECONorthwest Note: The housing density for the variation using the housing mix for residential development over the 2001 to 2008 period is slightly higher for development in the LDR and MDR designations than the variation using the housing mix for all housing in 2007. The reason the density is higher using the 2001-2008 mix is that mix assumes that there will be more single-family attached units, which have comparatively high historical densities, and fewer tri- and quad-plex units, which have comparatively low historical densities. The result is that the average density in the LDR and MDR is higher when using the 2001 to 2008 mix. The overall average density for all housing is lower when using the 2001 to 2008 mix. The baseline assumptions in the residential land need estimate in Table 3 are described below. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 15 Population growth A 20-year population forecast (in this instance, 2010 to 2030) is the foundation for estimating needed new dwelling units. On June 17, 2009, Lane County adopted a new coordinated population forecast for this period. The city will be initiating a Metro Plan Amendment process to formally adopt this forecast for use in all future planning efforts. The forecast projects that population inside the Eugene UGB will grow from 177,775 people in 2010 to 211,783 people in 2030, an increase of 34,008 people between 2010 and 2030. 9 ? Potential range of assumption: The adopted Lane County population forecast is the only assumption about population growth currently under consideration in ECLA. ? CAC and TAC discussion: CAC and TAC were not asked for different assumptions about population growth because this is a policy decision based on the Lane County coordinated population forecast, which the City Council is expected to adopt. ? Current technical recommendation for baseline assumption: We recommend using the Lane County population forecast for Eugene. ? Data source: Lane County adopted coordinated population forecast, Lane , updated June 2009. County Rural Comprehensive Plan Population in group quarters Persons in group quarters do not consume standard housing units: thus, any forecast of new people in group quarters is typically backed out of the population forecast for the purpose of estimating housing demand. Group quarters can have a big influence on housing in cities with colleges (dorms), prisons, or a large elderly population (nursing homes). In general, any new requirements for these housing types will be met by institutions (colleges, government agencies, health-care corporations) operating outside what is typically defined as the housing market. Group quarters, however, require land and are typically built at densities that are comparable to multiple-family dwellings. The U.S. Census tracks the number of people in group quarters. The share of Eugene’s population living in group quarters was 5.5% in 1990, 4.4% in 2000, and 5.3% in 2007. One of the factors that will affect the amount of Eugene’s population housed in group quarters is enrollment growth at the University of Oregon and the University’s provision of dormitory space. The University projects growth of about 3,700 students The population forecast is from Table 1.1 in the revised Lane County Rural Comprehensive Plan General Plan Policies 9 , updated June 2009. 1984 ECLA: Baseline Assumptions ECONorthwest July 2009 Page 16 over the 2009 to 2019 period (from 20,300 students in 2009) and plans to build an 10 additional approximately 1,500 bed spaces over the 2007 to 2017 period. 11 ? Potential range of assumption: The U.S. Census’ range of people in group households (between 4.4% to 5.5% of population) is a reasonable range for this assumption. There are two main factors that may affect the share of population in group quarters: (1) the aging population and (2) growth in the University of Oregon’s student body. The aging of the population may result in an increase in share of seniors o living in group housing, especially nursing homes. Housing types for the aging population range from congregate facilities (e.g., assisted living) to age restricted active adult retirement communities, which have a range of single-family and multifamily housing types. The age and health of seniors impact the their hosing choice. Younger, independent seniors have a preference for aging in place or choose housing that allows them greater independence, such as age restricted communities. As seniors age or their health deteriorates, housing choices may include assisted living facilities and nursing homes. It is difficult to estimate how much the aging of the population and greater housing choice for seniors will affect the share of population in group quarters. Growth in the University of Oregon’s student population may result in o an increase in the share of population in group quarters. The affect of growth in the student body at the University on the share of Eugene’s population in group quarters will depend on actual growth in the student body and whether the University builds as much student housing as has been proposed. If the University builds as much housing as proposed, it may result in an increase in population in group quarters, which would result in a decrease in need for new housing units. ? CAC and TAC discussion: CAC and TAC have not discussed this assumption in great enough depth to have suggestions for different assumptions. Some CAC members have expressed concern that the assumption account for growth in the student population at the University of Oregon and the University’s plans for building additional dorm rooms. University of Oregon Draft Academic Plan, 1/12/09. Accessed on 2/9/2009 from: 10 http://provost.uoregon.edu/files/provost/uploads/Academic_plan_1_12_09.pdf University of Oregon memorandum, Strategic Housing Plan Consultant’s Report, March 26, 2008. Accessed on 11 2/9/2009 from: http://uplan.uoregon.edu/projects/Project%20Sums%20for%20Web/HousingPlan/UO%20HSP%20FINAL%20MAI N.pdf ECLA: Baseline Assumptions ECONorthwest July 2009 Page 17 ? Current technical recommendation for baseline assumption: We recommend assuming that 5.3% of Eugene’s 2030 population (1,870 people) will live in group quarters. ? Data source: The assumption about population in group quarters is based on the share of Eugene’s population in group quarters in 2007 according to the U.S. Census, American Community Survey, 2007. This assumption considers long-term trends in share of population in group quarters in 1990, 2000, and 2007, based on U.S. Census data in those years. Persons per household In 1990, traditional families (married couple, with one or more children at home) accounted for 25% of all households in Oregon. In 2007 that percentage had dropped to 20%. Consistent with that trend, the average household size has decreased over the past five decades and is likely to continue decreasing. The average household size in Oregon was 2.60 in 1980, 2.52 in 1990, and 2.51 in 2000 and 2.49 in 2007. One and two person households made up the majority of Oregon households in 1990. The direct impact of decreasing household size on housing demand is that smaller households means more households, which means a need for more housing units even if population were not growing. Average household size in Eugene followed the same pattern as the State: household sizes have decreased. In 1990, the average household had 2.30 persons per household, dropping to 2.27 in 2000, and 2.25 persons per household in 2007. OAR 660-024 established a “safe harbor” assumption for average household size—which is the figure from the most recent Census. ? Potential range of assumption: We could assume that household sizes will change over the planning period or we could use the safe harbor and assume that household sizes will continue at 2.25 persons per household. The historical change in household size in Eugene over the last quarter- century is a relatively slow decrease: from 1980 to 2007 the average annual rate of decrease was on the order of 1/10 of 1% per year. If Eugene’s household th size continues to decrease, Eugene will need more dwelling units than the current forecast projects to accommodate Eugene’s expected population growth. Trends in student housing suggest that Eugene’s household size may increase slightly over the planning period. One type of student housing that has been built more frequently in Eugene are large units with five or more bedrooms and shared common space and kitchen facilities. These dwellings are most common in neighborhoods near the University and may have five or more students living in them. While it seems that the market for this type of housing is limited by student housing demand and student housing preferences, ECLA: Baseline Assumptions ECONorthwest July 2009 Page 18 continued growth in this type of housing could increase average household size slightly across the City. The result of increased household size would be an decrease in the number of new dwelling units needed to accommodate Eugene’s expected population growth. ? CAC and TAC discussion: Some CAC members think that we should assume that household sizes will change in the future. CAC members have expressed concern at development of buildings with more than the usual number of bedrooms (five or six bedrooms) in the same dwelling unit. This creates higher than normal persons per household in the neighborhoods with this type of development, which creates other policy challenges for these neighborhoods (e.g., parking availability). The housing needs analysis will discuss this trend. ? Current technical recommendation for baseline assumption: We recommend using the safe harbor assumption that household sizes will remain at 2.25 persons per household. Forecasting future household sizes requires considering a number of demographic and social shifts that are complex: continued aging of the population, changes in ethnicity, and changes in student housing preferences. The differences across the City over a 20 year period will be relatively small. ? Data source: The assumption about household size is based on a point in time estimate based on 2007 U.S. Census, American Community Survey, data. Residential vacancies Housing vacancy rates are cyclical. Low vacancy rates signal an excess of demand relative to supply, which brings new construction and, eventually, higher vacancy rates. Vacancy rates for rental and multiple family units are typically higher than those for owner-occupied and single-family dwelling units. In 1990 the Census reported a vacancy rate for all housing of 3.6%, increasing to 5.4% in 2000, and 6.3% in 2007. While it may appear that Eugene’s vacancy rate has increased over the 1990 to 2007, Eugene’s vacancy rate has probably fluctuated throughout each year. The Census’ vacancy rate data is accurate for the date of the Census (April 1) but the vacancy rate may change significantly throughout the year based on activities at the University of Oregon. For example, Eugene may have a higher vacancy rate in July, when most students have left town, and a lower vacancy rate in October, with the start of the University’s school year. Since state law and this project requires a 20-year forecast, and one should expect several housing cycles during that period, this project should be looking for an average vacancy rate (the “natural” rate of vacancy). OAR 660-024 established a “safe harbor” assumption for average residential vacancies—which is the figure from the most recent Census. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 19 ? Potential range of assumption: Census data probably describes a reasonable range of vacancy rates: 3.5% to 6.5% vacancy. ECO has typically found vacancy rates of 2% to 9% in other cities, depending on the type of housing and local housing market conditions. ? CAC and TAC discussion: Several CAC members agreed the most reasonable vacancy rate assumption would be 5%. That is an average rate that ECO has used in other studies of this type. ? Current technical recommendation for baseline assumption: We recommend assuming that an average of 5% of new dwellings will be vacant, based on historical vacancy data and suggestions from the CAC. ? Data source: The assumption about vacancy rate is based on a point in time estimate for 2007 from the U.S. Census, American Community Survey. Housing mix Housing mix is the mixture of housing (structure) types (e.g., single-family detached or apartments) within a city. State law requires a determination of the future housing mix in the community and allows that determination to be based on different periods: (1) the mix of housing built in the past five years or since the most recent periodic review, whichever time period is greater, (2) a shorter time period if the data will provide more accurate and reliable information, or (3) a longer time period if the data will provide more accurate and reliable information (ORS 197.296). This memorandum presents housing mix data for two periods (1) housing mix over the 2001 to 2008 period and (2) housing mix over the 1990 to 2007 period. Table 4 shows the housing mix for residential development over the 2001 to 2008 period. We selected this time period over the 1999 to 2008 period because it shows housing mix that occurred since the City’s revised zoning ordinance went into effect in 2001. About 64% of housing developed was single-family detached, 10% was single- family attached, 5% was manufactured, 3% was duplex, and the remaining 18% were structures with 3 or more units. The share of single-family housing varied from a high of 84% in 2001 to a low of 43% in 2007. A caveat about the information presented in Table 4: the data about residential development is both complex and somewhat scant. Each development may have idiosyncrasies, such factors that limit development density or footprint (such as a stream). Moreover, it is typical to see cycles in building: for example, a lot of single- family units get built so then a lot of multifamily follows. We think it is more appropriate to look at building trends broadly and on average over a several-year period (e.g., for the entire 2001 to 2008 period) than on a year-by-year basis. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 20 Table 4. Percent of housing by structure type, 2001-2008, Eugene UGB Tri- and Single-Single-Quad-plex Apts with Apts with family Manufact-family (3 or 4 5 to 19 20 or more Yeardetachedured homeDuplexattachedunits)unitsunits 200184%2%3%2%1%8%0% 200277%8%2%0%2%11%0% 200382%8%3%1%5%1%0% 200464%3%2%1%1%20%8% 200561%8%6%4%1%1%20% 200647%4%2%36%4%5%2% 200743%2%4%26%5%3%16% 200848%6%3%1%2%34%6% Average64%5%3%10%2%8%7% Total Units 4,153 350 209 660 162 540 458 Source: LCOG GIS data and City of Eugene Planning Department, 2008 Table 5 shows changes in the mix of Eugene’s housing stock (all housing in the City) between 1990 and 2007, based on U.S. Census data. The share of single-family detached housing was relatively stable over the seventeen-year period, accounting for about 55% of housing stock in Eugene. Table 5. Housing stock by structure type, Eugene city limits, 1990, 2000, and 2007 199020002007New Units 1990-2007 Percent Percent Structure typeUnitsPercentUnitsPercentUnitsPercentUnitsof totalIncrease Single-family detached26,518 55%32,870 54%38,090 55%11,572 55%44% Manufactured Home 2,250 5% 3,281 5% 3,833 6% 1,583 8%70% Duplex (2 units) 2,163 5% 2,426 4% 1,979 3% (184) -1%-9% Single-family attached 3,264 7% 4,011 7% 4,828 7% 1,564 7%48% Tri- & Quad-plex (3 or 4 units) 2,723 6% 3,451 6% 4,794 7% 2,071 10%76% Apartments with 5 to 19 units 6,345 13% 7,538 12% 8,456 12% 2,111 10%33% Apartments with 20 + units 4,728 10% 7,755 13% 6,915 10% 2,187 10%46% Total47,991 100%61,332 100%68,895 100%20,904 100%44% Source: U.S. Census 1990 and 2000, American Community Survey 2007 Note: The decrease in duplex units between 1990 to 2007 may be the result of data anomalies, rather than an actual decrease in duplexes. Several CAC members have expressed concerns about the categories of housing shown in Tables 4 and 5. Suggestions for changes to mix include: (1) combine some categories of structure type, such as apartments with 5 to 19 units and apartments with 20 or more units and (2) consider other structure types, such as student housing with more than four bedrooms and shared common areas or small affordable single-family dwellings. City staff is in the process of determining whether and how to consolidate the existing categories of structures. Data about the other structure types is not commonly available across the City. The housing needs analysis will discuss these housing types and present available data for these housing types. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 21 ? Potential range of assumption: The assumptions of housing mix in the baseline analysis could be taken from the average mix over the 2001 to 2008 period or from the 2007 mix. The mixes are as follows: Mix for housing built from Mix of housing stock in 2001 to 2008 2007 Single-family detached: 64% Single-family detached: 55% Manufactured: 5% Manufactured: 6% Duplex: 3% Duplex: 3% Single-family attached: 10% Single-family attached:7% Tri- & Quad-Plex: 2% Tri- & Quad-Plex: 7% Apt. with 5-19 units: 8% Apt. with 5-19 units: 12% Apt. with 20+ units: 7% Apt. with 20+ units: 10% OAR 660-007 requires that cities of 50,000 or more people in the Portland Metro UGB assume that 50% of new residential construction will be single- family detached housing types (including manufactured housing) and 50% multifamily housing types (including all housing attached housing where each dwelling unit is not on a separate lot). Although OAR 660-007 does not apply to Eugene (because the City is not in the Portland Metro UGB), this rule does illustrate the housing mix that cities in the Metro UGB are expected to achieve. ? CAC and TAC discussion: Discussions with the CAC indicate that they favor assuming that the housing mix that Eugene will achieve over the planning period is the mix for Eugene’s housing stock in 2007. CAC members are concerned that the housing mix achieved over the 2001 to 2008 period was anomalous, with development of more single-family detached housing than Eugene can reasonably expect over the next 20 years. CAC members generally agreed that future housing mix will more closely resemble the mix of the City’s housing stock. ? Current technical recommendation for baseline assumption: We recommend basing Eugene’s forecasted housing mix on the mix of housing stock in 2007. ? Data source: The assumption about housing mix could be based on development trends over the 2001 to 2008 period, based on LCOG GIS data and City of Eugene Planning Department’s building permit data. Alternatively, assumption about housing mix could be based on the housing mix for Eugene’s housing stock, shown in point in time estimates for 1990, 2000, and 2007 from the U.S. Census. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 22 Housing density Housing density is the density of housing by structure type, expressed in dwelling units per net or gross acre. Like housing mix, State law requires determination of 12 housing density based on analysis of data and suggests using analysis of housing density developed over the past five years or since the most recent periodic review, whichever time period is greater, or for a shorter or longer time period. The U.S. Census does not track residential development density. City staff recommends using housing density based on development between 2001 and 2008 (rather than 1999 to 2008) because changes to the City’s zoning code went into effect in 2001 that affect housing development. Eugene City staff concluded that data prior to 1996 is not accurate and consistent enough for an analysis of longer-term housing densities. Table 6 shows average net residential development by structure type for the 2001 to 2008 period. The average density for all residential development over the 2001 to 2008 period was 6.7 dwellings per net acre. Average residential densities ranged from 5.6 dwelling units per net acre for single-family residential to 26.3 for apartments with 20 or more units. These estimates are in the typical range and consistent with previous work by ECONorthwest and others for other cities in Oregon. Tables B-1 and B-2 in Appendix B show average density by plan designation and zoning district. Table 6. Average development density by structure type, dwelling units per net acre, 2001-2008, Eugene UGB Tri- and Single-Single-Quad-plex Apts with Apts with family Manufact-family (3 or 4 5 to 19 20 or more Yeardetachedured homeDuplexattachedunits)unitsunitsTotal 20015.84.18.631.29.44.8na5.8 20025.78.011.810.75.312.5na6.3 20035.32.41.815.36.319.5na4.7 20045.36.48.85.410.218.412.56.7 20055.42.911.233.714.732.327.76.5 20065.83.59.922.35.27.647.97.9 20076.19.28.218.518.468.347.410.0 20085.77.84.69.214.529.382.18.8 Average5.63.96.820.27.813.126.36.7 Source: LCOG GIS data and City of Eugene Planning Department, 2008 OAR 660-024-0010(6) uses the following definition of net buildable acre. “Net Buildable Acre” consists of 43,560 12 square feet of residentially designated buildable land after excluding future rights-of-way for streets and roads. While the administrative rule does not include a definition of a gross buildable acre, using the definition above, a gross buildable acre will include areas used for rights-of-way for streets and roads. Areas used for rights-of-way are considered unbuildable. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 23 ? Potential range of assumption: Table 6 shows the most recently data available about housing density in Eugene. OAR 660-007 requires that cities of 50,000 or more people in the Metro UGB assume that new residential construction will be average at least 10 dwelling units per net acre. Although OAR 660-007 does not apply to Eugene (because the City is not in the Portland Metro UGB), this rule does illustrate the housing density that cities in the Metro UGB are expected to achieve. ? CAC and TAC discussion: CAC and TAC made no suggestions for alternative housing density assumptions. ? Current technical recommendation for baseline assumption: We recommend using Eugene’s current housing density in the baseline analysis. Assumptions about future housing density may be revised based on direction from the City Council. ? Data source: 2001 to 2008 housing mix: The assumption about housing density is based on development trends over the 2001 to 2008 period, based on LCOG GIS data and City of Eugene Planning Department’s building permit data. Converting net acres to gross acres The existing data about residential density is in acres, which does not include land net for public right-of-way. One way to estimate the amount of land needed for housing including public right-of-way is to convert from to acres based on assumptions netgross about the amount of land needed for right-of-way. 13 ? Potential range of assumption: The net-to-gross factor for housing built between 2001 and 2008 in Eugene averaged about 20%, based on analysis of residential development that occurred in Eugene between 2001 and 2008. ? CAC and TAC discussion: CAC and TAC did not provide comments on the net-to-gross factor. ? Current technical recommendation for baseline assumption: We recommend using a net-to-gross factor of 20%. ? Data source: The net to gross factor is a point in time estimate based on LCOG GIS data and City of Eugene Planning Department’s building permit data. OAR 660-024-0010(6) uses the following definition of net buildable acre. “Net Buildable Acre” consists of 43,560 13 square feet of residentially designated buildable land after excluding future rights-of-way for streets and roads. While the administrative rule does not include a definition of a gross buildable acre, using the definition above, a gross buildable acre will include areas used for rights-of-way for streets and roads. Areas used for rights-of-way are considered unbuildable. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 24 Residential redevelopment The City of Eugene has a legal obligation to inventory the supply and estimate the capacity of buildable land within the UGB. The inventory must consider land that may be used for residential infill and redevelopment. The City does have an obligation not 14 to “create a map or document that may be used to verify and identify specific lots or parcels that have been determined to be buildable lands” to show residential infill and 15 redevelopment. OAR 660-008-0005(6) defines redevelopable land as “land zoned for residential use on which development has already occurred but on which, due to present or expected market forces, there exists the strong likelihood that existing development will be converted to more intensive residential uses during the planning period.” The administrative rule does not define what constitutes a “strong likelihood” for redevelopment. Moreover, neither Goal 10, OAR 660-008, nor ORS 197.296 define “infill.” Planners and Oregon land-use policy have seemed to define infill as either (1) development that occurs in areas that are already largely developed, or (2) development that occurs on “partially vacant” land. Both of those informal definitions have problems. The first one has no agreed upon, much less legally adopted, way of being measured. The second one requires a definition of partially vacant (generally agreed to mean taxlots that have some development, but less—perhaps substantially less—than plan and zone designations would allow, and some amount of vacant acreage—perhaps as little as a quarter acre that might be feasibly developed). For the purposes of this study, we define residential redevelopment as development that (1) occurs on land with existing development, and (2) results in a net increase in dwelling units. The second condition means that the replacement of one dwelling unit with one other dwelling unit would not be counted. This definition includes infill on partially vacant land where there is no demolition, as well as redevelopment that requires demolition of existing structures. Examples of residential redevelopment include: (1) demolition of a single-family dwelling and development of a duplex or apartment building, and (2) partitioning a lot with a single-family house and building a new single-family dwelling on the newly created lot. 16 Appendix C describes potential methodologies for evaluating the amount of redevelopment that occurred historically, as well as discussion with the CAC about the The legal requirements are described in ORS 197.296(3)(a) and (4)(a)(D). 14 Quoted from ORS 197. 296(4)(c). 15 Subdividing a lot and building an additional dwelling is sometimes referred to as infill. For the purposes of this 16 study, we have categorized this type of development as redevelopment. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 25 issues with and merits of different methodologies. After evaluating different approaches projecting future redevelopment rates and discussing this issue with the CAC at several meetings, City staff directed the consultants to proceed as follows regarding redevelopment: 1.Treat “infill” as a subset of “redevelopment.” 2.Measure the combined amount of historical redevelopment using the methods described in Appendix C. In summary, use data from LCOG’s address file to estimate the number of new residential addresses that were added between 2001 and 2008 to tax lots identified as developed in 2001. There are some assumptions we will have to make to do that, but they are explainable and defensible. LCOG believes that the address file is very accurate and that this method of estimating redevelopment makes sense. We (ECO) believe that this will be the first study to have used this advanced method, that it will give accurate results, and that it will be the best information available in any study of this type about the actual amount of residential redevelopment (as defined by state rules) that occurred over a specific, identified period. 3.Use the estimate of the amount of historical redevelopment to create a rate that can be used as a baseline forecast for estimating future redevelopment. For example, if 800 new dwelling units (as identified by new residential addresses) were added over an eight-year period (2001 to 2008, inclusive), then redevelopment accounted, historically for an average of 100 dwelling units per year; if that rate is used for the baseline forecast, then about 2,000 new dwelling units will be built on developed land over the 20-year planning period. 4.Subtract the units estimated to be provided via redevelopment during the planning period (in the example above, 2,000 dwelling units) from the total needed (based on calculations described earlier in the memorandum) to get an estimate of the number of new dwelling units that will be built during the 20-year . planning period on land defined as “vacant” in the LCOG BLI The next section describes results of our implementation of the first two sets, and the resulting estimate of the historical rate of redevelopment. Results Historical residential redevelopment includes lots that had addresses coded before 2001 and received additional addresses after 2001. ECO used the following criteria to identify residential redevelopment: (1) lots that had one or more address prior to 2001; and (2) lots that had additional addresses on the lot after 2001. Plan designation and zoning were not used as selection criteria. Rather, new residential units were identified by land use categories and improvement type. This methodology is consistent with the definition of redevelopment presented in the previous section. Beth du/650 infill du)The infill rate (based on this definition) is about 10% (6500 interested in that type of development.The data seem suspect, and I don't think we are that I eliminated some classes of DU: all mobile homes and hotels. increase might be of interest.The densities don't really mean much, although the marginal ECLA: Baseline Assumptions ECONorthwest July 2009 Page 26 Table 7 shows that between 2001 and 2008 a total of 722 new dwelling units occurred on tax lots that already had dwellings. Of these, 213 were on lots that had retirement homes, and 220 were on lots that had single-family dwellings. All of the remaining units were on lots with some type of multi-family dwellings. Table 7. Residential redevelopment: new dwellings on developed lots, Eugene UGB, 2001-2008 Existing Existing Unit TypeDUNew DU Apartment With 1 To 4 Units13381 Apartment With 20 Units or More33944 Apartment With 5 To 19 Units38977 Condominiums or Townhouses352 Quad1110 Retirement Home170213 Single Family Housing230220 Two Family Housing Unit-Duplex7275 Total1379722 Source: LCOG taxlot and address data; analysis by ECONorthwest Based on the results we estimate that about 722 new dwellings were constructed between 2001 and 2008 that could be considered redevelopment. This is about 11% of all housing production during the 2001 to 2008 period. New dwellings constructed on lots with pre-existing development is among the best indicators of redevelopment available because it provides an actual unit count of new housing by housing type for the analysis period. This number may overestimate the actual redevelopment on these lots; some new dwellings may have been part of a phased development—particularly apartments. Despite these limitations, we feel this indicator is one of the more reliable redevelopment indicators. ? Potential range of assumption: The data suggest that approximately 11% of all housing production during the 2001 to 2008 period were the result of redevelopment. ? CAC and TAC discussion: CAC has discussed the redevelopment analysis at the May and June CAC meetings. These discussions are on-going but expected to be concluded soon. ? Current technical recommendation for baseline assumption: We recommend assuming about 11% of all new housing will be accommodated through redevelopment, about 1,650 new dwelling units. ? Data source: LCOG GIS data and City of Eugene Planning Department’s building permit data. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 27 2.3 PS-PLN:B UBLIC AND EMIUBLIC AND EEDS ASELINE ASSUMPTIONS Cities need to provide land for uses other than housing and employment. Public and semi-public facilities such as schools, governments, churches, parks, and other non- profit organizations will expand as population increases. The analysis of public and semi-public land needs is driven by needs identified by other agencies (e.g., school districts), needs identified by the City (e.g., parks), and historical needs. For the purpose of estimating land needed for other uses, these lands are classified into four categories: ? Land needed for schools. The 4J and Bethel school districts have plans for new schools by general location within the City and may have plans for selling surplus school properties. ? Land needed for parks and open space. This includes all land designated for park and open space use within the Eugene UGB. The Parks, Recreation & Open defines four categories of parks: SpaceComprehensive Plan (PROS Plan) neighborhood parks, community parks, natural areas, and other parks. ? Land needed for public operations and facilities. This includes lands for city offices and maintenance facilities, county facilities, state facilities, federal facilities, and other related public facilities. ? Lands needed for semi-public uses. This includes churches, non-profit organizations, and related semi-public uses. The memorandum “Framework for Determining Land Needed for Public and Semi- Public Land Need in Eugene During the 2010-2030 Period” (March 5, 2009) describes the methods used to develop an estimate of public and semi-public land needs. This section discusses the baseline assumptions necessary for determining the amount of land needed for public and semi-public uses over the 20-year planning period. Table 9 shows the estimate of nearly 1,100 acres of land needed for public and semi- public uses. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 28 Table 9. Estimate of existing public and semi-public land, Eugene UGB, gross acres, 2010-2030 Assumed Need Estimated need (Ac/1,000 (gross acres) Persons)2010-2030 Type of Use Schools 3.5 120 4J School Districtnonenone Bethel School District 3.5 120 Parks and Open Space 20.0 822 Neighborhood Parks 1.7 149 Community Parks 1.5 79 Natural Areas 10.0 47 Other Parks 6.8 548 Public Facilities and Operations 2.9 100 Semi-Public 1.3 44 Total 24.2 1,087 Source: 4J and Bethel School Districts, Target Level of Service: Lane Council of PROS Plan, Governments GIS data We are not able to determine whether Eugene has enough land to meet public and semi-public land needs. Based on the results of the preliminary BLI, it appears that Eugene does not have enough residential and employment land to accommodate expected need for public and semi-public land given the assumptions in Table 9. Schools As population grows, school districts may need additional land for new schools in the planning period. ORS 197.296 requires that cities coordinate need for new land for schools with public school districts. We discussed land need with officials from the 4J and Bethel School Districts. School land needs are based on the estimate of land need provided by the school districts. The 4J School District does not expect to need new land over the 2010 to 2030 period. 17 The Bethel School District expects to need two sites for future schools: (1) an 80-acre site for a high school and (2) a 40-acre site for a K-8 school. These needs could increase if the City expands the UGB and bring more residential land into the UGB in the School District. The District currently owns an 80-acre site that is located outside but adjacent to the UGB. The Bethel School District does not have surplus property. 18 This information was provided by Barb Bellamy, Communications Director at 4J in an interview on March 12, 17 2009. This information was provided by Pat McGillivray, Communications Relations for the Bethel School District in 18 an interview on March 12, 2009. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 29 ? Potential range of assumption: The school districts provided input on their expected land needs. Unless the Council finds these needs unreasonable, there is no range of assumptions. ? CAC and TAC discussion: CAC and TAC discussed school needs but did not have suggestions for alternative school land needs. CAC and TAC members discussed concerns about availability of existing sites within the UGB to accommodate the Bethel District’s land needs. ? Current technical recommendation for baseline assumption: We recommend assuming that the 4J District will not need new land and that the Bethel District will need a 40-acre site and an 80-acre site. ? Data source: Interviews with school district officials. Parks and open space The CAC suggested basing parkland needs on the level of service identified in the despite the fact that the Parks, Recreation & Open SpaceComprehensive Plan (PROS Plan), City has not adopted this plan. The PROS Plan calls for a level of service of 20-acre per 1,000 people, broken into the following parks categories: 1.7 acres per 1,000 people for neighborhood parks, 1.5 acres per 1,000 people for community parks, 10.0 acres per 1,000 people for natural areas, and 6.8 acres per 1,000 people for other parks. ? Potential range of assumption: Based on the level of service standards, the City currently has a deficit of about 380 acres of parkland to serve the existing population. Based on the level of service standards and expected population growth, the City will need 820 acres to fill the existing parkland deficit and serve new residents. ? CAC and TAC discussion: CAC and TAC discussed parkland needs but did not have suggestions for alternative parkland land needs. The CAC and TAC both agreed that we need to consider the identified land need for natural areas in further detail because it does not make sense for a need for natural areas to contribute to the need for additional lands within the UGB. ? Current technical recommendation for baseline assumption: We are still refining parkland need for natural areas, which may result in some adjustment to parkland needs. We recommend that the City base parkland need on the level of service in the PROS Plan and address existing parkland deficits, as well as future parkland need. ? Data source: City of Eugene Parks Department Public facilities and operations This category includes lands for city offices and maintenance facilities, county facilities, state facilities, federal facilities, and other related public facilities. It does not ECLA: Baseline Assumptions ECONorthwest July 2009 Page 30 include right-of-ways, land used by the railroad, or land owned by the Bonneville Power Administration. The City currently has 6.6 acres per 1,000 people (1,174 acres) for public facilities and operations. ? Potential range of assumption: Based on the existing level of service (6.6 acres per 1,000 people) and expected population growth, the City may need about 260 acres of land for public facilities and operations over the planning period. This estimate seems high because Eugene already has many of the operations that are necessary for a city the size of Eugene, such as: a wastewater treatment facility, local and regional government office buildings, the University of Oregon’s campus and related facilities, utility and other operations, and other public facilities. An alternative assumption might be that Eugene will need 100 new acres of land (2.5 acres per 1,000 people) for public facilities and operations. Among other things, this estimate of land need will address the University of Oregon’s expected growth of 30-acres over the planning period. 19 ? CAC and TAC discussion: CAC and TAC discussed public facilities and operations land need and seemed to think that assuming a need for 6.6 acres per 1,000 people was too high. Some committee members were concerned about the availability of sites within the UGB to provide for needed public facilities. ? Current technical recommendation for baseline assumption: We recommend assuming need for 100 acres of land for public facilities and operations. ? Data source: LCOG GIS data and City of Eugene Planning Department’s building permit data Semi-Public uses This category includes lands for semi-public uses, such as churches, non-profit organizations, and related semi-public uses. The City currently has 1.3 acres per 1,000 people (232 acres) for semi-public uses. ? Potential range of assumption: The City could assume that future need for semi-public land will be similar to current uses, at 1.3 acres per 1,000 people. Under that assumption, the City will need about 50 acres for semi-public uses over the 20-year planning period. ? CAC and TAC discussion: CAC and TAC had no comments on the need for future semi-public land needs. Christopher Ramey, Associate Vice President at the University of Oregon, said that the University expects to 19 purchase and develop roughly 30-acres over the 20-year planning period. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 31 ? Current technical recommendation for baseline assumption: We recommend assuming need for 1.3 acres per 1,000 people or 50 acres of land for public facilities and operations. ? Data source: The assumption about need for semi-public land is a point in time estimate, based on LCOG GIS data and City of Eugene Planning Department’s building permit data. 2.4 S UMMARY This memorandum has presented preliminary baseline assumptions for estimating land need as part of the ELCA project. We presented a factual basis for those assumptions, the potential range of assumptions, CAC discussion about the assumptions, and our recommendation for which assumption to use. The analysis of buildable land supply is documented in a memorandum by LCOG and is under review by City staff. Once the baseline assumptions for land need and buildable lands inventory are finalized, we will compare land need with land supply. ATTACHMENT D 3 AA:SA PPENDIX UMMARY OF SSUMPTIONS AND RVLNA ECOMMENDED ALUES FOR THE AND EED NALYSIS Reasonable Impact on VariableRec. ValueSource of DataRationaleRangeLand Need Employment Land Needs Employment growth1.4%State of OregonSafe harbor0.9% or 1.4%High Share of Emp by TypeState of OregonCurrent mixVariesLow Industrial18.2%15.0% - 23.0% Commercial54.3%46.0% - 55.0% Retail13.1%13.0% - 15.0% New Employment in Non-employment PD15%State of OregonCurrent percentage10% - 20%Low New Employment in Existing Built Space10%City of EugeneOther cities5% - 15%Low Employment RedevelopmentCity of EugeneOther cities10% to 35%High Industrial10% Commercial15% Retail35% Employment DensityState of OregonCurrent averageVariesModerate Industrial13 EPA5-20 EPA Commercial68 EPA30-93 EPA Retail23 EPA20-37 EPA Converting net to gross20% (15%)City of EugeneCurrent average15% - 20%Moderate Residential Land Needs Population Growth0.9%Lane CountyAdopted ForecastNoneHigh Population in Group Quarters5.3%US CensusCurrent average4.4% - 5.5%Low Persons per Household2.25US CensusSafe harbor Difficult to Moderate Residential Vacancy Rate5%US CensusRecent data3.5% - 6.5%Low Historic data & Housing mixCity of EugeneVariesModerate recent trends Single-family detached55%45% - 64% Mfg home in park6%5% - 8% Duplex3%3% - 5% Single-family attached7%7% - 10% Tri- and quadplex7%2% - 7% Apt. with 5-19 units12%8% - 13% Apt. with 20+ units10%7% - 13% Average of Housing Density6.7City of EugeneRecent trendsHigh 6.7-10.0 Single-family detached5.6 Dwelling units Mfg home in park3.9 per acre Duplex6.8 Single-family attached20.2 Tri- and quadplex7.8 Apt. with 5-19 units13.1 Apt. with 20+ units26.3 Residential redevelopment11%City of EugeneRecent trends11%High Net to Gross Factor20%City of EugeneCurrent average15% - 20%Moderate Public and Semi-Public Land Needs Park Land20.0 ac/ppCity of EugenePROS PlanN/AHigh Neighborhood Parks1.7 ac/pp Community Parks1.5 ac/pp Natural Areas10.0 ac/pp Other Parks6.8 ac/pp SchoolsSchool DistrictsN/ALow 4J School District0 acres4J Bethel School District120 acresBethel Public Operations and Facilities100 acresCity of EugeneHistoric data100 - 260 acresModerate Semi-public uses50 acresCity of EugeneHistoric data25 - 75 acresLow Note: Note: We excluded government employment growth because government land need is accommodated through public and semi-public land needs. ATTACHMENT D 4 AB:A PPENDIX DDITIONAL DATA TABLES Tables B-1 and B-2 in Appendix B show average density by plan designation and zoning district. Table B-1. Average development density by plan designation and structure type, dwelling units per net acre, 2001-2008, Eugene UGB Manufact-Tri- and Aptss Single-ured Single-Quad-plex Apts with with 20 or family home in family (3 or 4 5 to 19 more Plan Designation detachedparkDuplexattachedunits)unitsunitsAverage Low Density Residential3.94.53.7na5.2 5.435.5na Medium Density Residential7.212.17.010.59.9 10.516.47.1 Medium Density Res Mixedna14.610.7na 12.0 6.2na30.6 High Density Res Mixed Usenananana 5.8 5.8nana High Density Residentialna9.422.532.2 29.0 15.236.732.8 Mixed Usena5.36.6na7.2 11.4nana Average3.96.87.826.36.7 5.620.213.1 Source: LCOG GIS data and City of Eugene Planning Department, 2008; analysis by ECONorthwest Table B-2. Average development density by zoning district and structure type, dwelling units per net acre, 2001-2008, Eugene UGB Manufact-Tri- and Apts with Single-ured Single-Quad-plex Apts with 20 or family home in family (3 or 4 5 to 19 more Zoning detachedparkDuplexattachedunits)unitsunitsAverage AG5.8nanana2.2 2.0nana C-1nana4.1na4.1 nanana C-2nana3.6na7.9 5.833.8na GOnananana20.0 nana20.0 I-3nananana1.4 nana1.4 R-13.74.29.3na5.2 5.335.5na R-1.5nananana11.1 11.1nana R-2na13.56.6na9.8 9.316.45.7 R-3na8.717.718.322.4 10.536.630.9 R-4na9.428.644.727.4 11.829.792.9 S10.45.36.627.724.2 6.741.526.9 S-C/R-1nana5.0na7.2 12.4nana S-C/R-2na9.512.1na8.3 7.3nana S-Hnananana4.8 4.8nana Average3.96.87.826.36.7 5.620.213.1 Source: LCOG GIS data and City of Eugene Planning Department, 2008; analysis by ECONorthwest ECLA: Baseline Assumptions ECONorthwest July 2009 Page 34 Table B-3. Residential development by structure type and year, 2001-2008, Eugene UGB Tri- and Apts with Single-Single-Quad-plex Apts with 20 or family Manufact-family (3 or 4 5 to 19 more Yeardetachedured homeDuplexattachedunits)unitsunitsTotal Number of Permits Issued 2001 to 2008 4,131 241 149 176 56 38 10 4,801 Number of Dwelling Units 2001 624 17 21 16 8 57 - 743 2002 691 73 17 4 15 100 - 900 2003 560 56 18 10 32 7 - 683 2004 588 29 22 12 11 185 74 921 2005 732 91 67 49 15 8 240 1,202 2006 517 48 27 391 40 50 21 1,094 2007 282 16 26 173 35 20 103 655 2008 159 20 11 5 6 113 20 334 Total DU 4,153 350 209 660 162 540 458 6,532 Net Acres Developed 2001 107.4 4.2 2.4 0.5 0.8 11.8 - 127.1 2002 121.4 9.1 1.4 0.4 2.8 8.0 - 143.1 2003 105.2 23.6 10.1 0.7 5.0 0.4 - 144.9 2004 111.4 4.6 2.5 2.2 1.1 10.1 5.9 137.8 2005 136.8 31.4 6.0 1.5 1.0 0.2 8.7 185.6 2006 89.7 13.6 2.7 17.5 7.7 6.6 0.4 138.2 2007 46.6 1.7 3.2 9.4 1.9 0.3 2.2 65.2 2008 27.8 2.6 2.4 0.5 0.4 3.9 0.2 37.8 Net Acres 746.2 90.7 30.8 32.6 20.8 41.2 17.4 979.8 Density (DU/Net Ac) 2001 5.8 4.1 8.6 31.2 9.4 4.8 na 5.8 2002 5.7 8.0 11.8 10.7 5.3 12.5na 6.3 2003 5.3 2.4 1.8 15.3 6.3 19.5na 4.7 2004 5.3 6.4 8.8 5.4 10.2 18.4 12.5 6.7 2005 5.4 2.9 11.2 33.7 14.7 32.3 27.7 6.5 2006 5.8 3.5 9.9 22.3 5.2 7.6 47.9 7.9 2007 6.1 9.2 8.2 18.5 18.4 68.3 47.4 10.0 2008 5.7 7.8 4.6 9.2 14.5 29.3 82.1 8.8 DU/Net Ac 5.6 3.9 6.8 20.2 7.8 13.1 26.3 6.7 Source: LCOG GIS data and City of Eugene Planning Department, 2008; analysis by ECONorthwest ECLA: Baseline Assumptions ECONorthwest July 2009 Page 35 Table B-4. Residential development by decade, Eugene UGB Avg Den Number (DU/Net Avg Lot Size DECADEof DUTotal AcresAC)(SF Before 1900 36 9 3.9 11,232 1900-1909 130 31 4.3 10,221 1910-1919 388 86 4.5 9,648 1920-1929 1,393 255 5.5 7,981 1930-1939 1,373 310 4.4 9,828 1940-1949 4,370 1,066 4.1 10,623 1950-1959 6,703 1,616 4.1 10,502 1960-1969 8,660 1,974 4.4 9,931 1970-1979 8,841 1,883 4.7 9,278 1980-1989 2,134 425 5.0 8,682 1990-1999 6,028 1,217 5.0 8,794 2000-2009 4,615 830 5.6 7,837 Source: LCOG GIS data and City of Eugene Planning Department, 2008; analysis by ECONorthwest ATTACHMENT D 5 AC:R PPENDIX EDEVELOPMENT METHODOLOGY The City of Eugene has a legal obligation to inventory the supply and estimate the capacity of buildable land within the UGB. The inventory must consider land that may be used for residential infill and redevelopment. It is our opinion that the City does 20 have an obligation to “create a map or document that may be used to verify and not identify specific lots or parcels that have been determined to be buildable lands” to 21 show residential infill and redevelopment. OAR 660-008-0005(6) defines redevelopable land as “land zoned for residential use on which development has already occurred but on which, due to present or expected market forces, there exists the strong likelihood that existing development will be converted to more intensive residential uses during the planning period.” The administrative rule does not define what constitutes a “strong likelihood” for redevelopment. Moreover, neither Goal 10, OAR 660-008, nor ORS 197.296 define “infill.” Planners and Oregon land-use policy have seemed to define infill as either (1) development that occurs in areas that are already largely developed, or (2) development that occurs on “partially vacant” land. Both of those informal definitions have problems. The first one has no agreed upon, much less legally adopted, way of being measured. The second one requires a definition of partially vacant (generally agreed to mean taxlots that have some development, but less—perhaps substantially less—than plan and zone designations would allow, and some amount of vacant acreage—perhaps as little as a quarter acre that might be feasibly developed). To distinguish between infill and redevelopment, some studies have defined infill as new construction on a developed tax lot that occurs without demolition of existing development, and redevelopment as new construction on a developed tax lot that includes the demolition of some existing development (or perhaps the physical connection of new development to existing development). These definitions would require data that are not now collected to be operative, and have no basis in state statute. Given these problems, we recommend basing the definitions directly on OAR 660- 008-0005(6). The definition we propose is not only legally defensible; it is also logically consistent. Our conclusion is that the OAR definition of redevelopment subsumes infill: infill is one type of redevelopment. Redevelopment is development that happens on any land that has been classified as developed (i.e., not vacant). Infill is one way that redevelopment can occur. The legal requirements are described in ORS 197.296(3)(a) and (4)(a)(D). 20 Quoted from ORS 197. 296(4)(c). 21 ECLA: Baseline Assumptions ECONorthwest July 2009 Page 37 There is a practical reason for fussing about these definitions: we have a way to measure redevelopment (including infill), but no good way to measure infill itself, total and no legal definition of infill to give clarity about what we should be trying to measure. For the purposes of this study, we define residential redevelopment as development that (1) occurs on land with existing development, (2) results in a net increase in and dwelling units. The second condition means that the replacement of one dwelling unit with one other dwelling unit would not be counted. This definition includes infill on partially vacant land where there is no demolition, as well as redevelopment that requires demolition of existing structures. Examples of residential redevelopment include: (1) demolition of a single-family dwelling and development of a duplex or apartment building, and (2) partitioning a lot with a single-family house and building a new single-family dwelling on the newly created lot. 22 Two CAC meetings have focused on redevelopment. The CAC members are divided about the assumption that the City should make about future redevelopment. Some CAC members are concerned about the amount of redevelopment that has already occurred in established neighborhoods and would like to see policies to limit future infill and redevelopment in some areas. Other CAC members are concerned about the amount of residential land need that Eugene will have over the 20-year period and want policies that increase the efficiency of residential land use (i.e., increase density) within the City’s UGB—one way to reduce need for a UGB expansion is to make and defend the assumption that a larger amount of growth will be accommodated by redevelopment (thus, reducing the need for vacant land). M ETHODS In previous studies conducted by ECONorthwest and other organizations, redevelopment has been addressed by assuming that a certain percentage of residential growth will be addressed through redevelopment, generally from 5% to 20% of new residential development. Metro assumed that “refill” (its term for the combination of 23 infill and redevelopment) would account for 26% of new residential development in its 2002 study and is currently developing a refill rate assumption for their on-going 24 residential land needs study. Subdividing a lot and building an additional dwelling is sometimes referred to as infill. For the purposes of this 22 study, we have categorized this type of development as redevelopment. ECONorthwest used this method in studies for the following cities: Redmond, Madras, Ontario, Lebanon, 23 Coburg, Ashland, and McMinnville. The Metro study is accessible from: http://library.oregonmetro.gov/files/ugr-residentialland.pdf 24 DEMAND OtherSize of Materials# of BuildersLaborOther Public PolicyParcelizationOTHER FACTOR DEMAND This exposition substantially oversimplifies the National Changes Rate of ZoningService / tax policyPublic servicesPhysical Constaints: SUPPLY OF COST OF LANDCONSTRUCTION COSTS PRICE OF BUILT SPACE FOR LANDBuildersSTRUCTURECOSTSFOR SPACE complexity of the land market. A model would economic in real household and e.g., Topography 0F EXISTING (e.g., Housing, Offices) LAND have to be disaggregated by types of uses (e.g., incomeformationemployment e.g., Wetlands HOUSING growth residential, industrial) and types of products within those uses (e.g., SF, MF) and types of households with effective demand for those uses (e.g., by size of HH, age of head, income). ECLA: Baseline Assumptions ECONorthwest July 2009 Page 38 In addition to estimating the amount of redevelopment that will occur over the planning period, the administrative rule requires the city to estimate what land has a “strong likelihood” for redevelopment. One commonly used method to estimate 25 capacity for infill and redevelopment is by arraying residential tax lots on the basis of the ratio of their improvement value to their land value ratios. In this methodology, 26 “strong likelihood” can then be defined by the value of that ratio. A ratio of less than 1::1 (i.e., where the improvement is worth less than the land) is a typical threshold. While that method is reasonable, convenient, and relatively inexpensive, people familiar with the process of redevelopment correctly point out that the redevelopment decision is affected by many other factors (see Figure C-1), and that many parcels with ratios less than 1::1 will redevelop during the 20-year forecast period, and many not parcels with ratios greater than 1::1 redevelop. The ratio is hardly a definitive will measure of “strong likelihood.” Figure C-1: Some of the factors that fact the price of built space and, by implication, the rate of redevelopment There is no guidance on what “strong” is or how it might be measured. 25 An improvement to land value ratio compares the assessed value of the improvements with the assessed value 26 of the land. For example, an improvement to land value ratio of 0.75:1 shows that the improvement is worth the less than the land (75% as much as the land). A ratio of 2:1 shows that the improvement is worth twice the value of the land. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 39 The professional literature of planning, urban economics, real estate, and appraisal does not have much to say about redevelopment rates. Conceptually, the factors likely to influence redevelopment (broadly, the conditions of demand, supply, and price for built space and the factors that go into creating that built space) are clear enough, but the magnitude of the empirical relationships has few studies and no professional consensus. The property owner / developer decision to redevelop is not simply deterministic, but complexly probabilistic. The requirements of Oregon law withstanding, no real estate analyst would have any confidence in making a property- specific assessment for every property in an urban area of the likelihood that the property would redevelop over a 20-year period. Fortunately, Oregon law has not yet been interpreted as requiring such a speculative exercise. Many studies related to Goals 9, 10, and 14 have taken a more pragmatic approach. They start with the question “Why does the state care about redevelopment?” The answer, in state law, is that redevelopment implies that we are accommodating the same amount of growth with development of a smaller amount of vacant land (other things being equal), which implies (a) more efficient use of land and urban infrastructure, (b) less need for UGB expansions, and (c) more resource land preserved. In short, redevelopment means that some of the growth of population and employment that would otherwise go on land now does not have to—that growth has been vacant accommodated on land (that is the definition of redevelopment). developed Thus, these studies reason, in the context of a UGB evaluation, what one needs to know is how much of the total forecasted population and employment growth is likely to be accommodated on developed land. If one can estimate that amount, then it can be subtracted from the total forecast of growth, and the remaining growth can be compared to the supply of vacant land to see if it is sufficient (given assumptions about the density of development) to accommodate that growth. Portland Metro, among other jurisdictions, uses this method. That method is sometimes referred to as dealing with redevelopment on the demand . In contrast, a attempts to identify what land (either specifically sidesupply-side method 27 or by class) is forecasted to redevelop and then calculates the amount of growth that land would accommodate. A supply-side method has all the problems noted previously about how to estimate which parcels are going to redevelop. The CAC spent some time discussing these contrasting methods. The consultants’ previous reports did not explain the differences as clearly as we have attempted to here—our motivation for this longer explanation is in part the desire to reduce the In a supply-side method the amount of growth that can be accommodated is derived from some estimate of the 27 supply of land that is forecasted to redevelop. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 40 confusion about what is possible, practical, and required for an evaluation of redevelopment. A few CAC members preferred that redevelopment be estimated on a tax-lot basis: this got referred to at CAC meetings as a supply-side approach to redevelopment. ECO and City staff met with Paul Conte, a CAC member and advocate of this method, at the end of June to clarify the option. All parties generally agreed that: 28 ? It would be desirable that any method used to make estimates of future redevelopment have some empirical basis, and one derived from the experience of the City of Eugene would be preferable. In other words, it would be desirable to have some information about the historical rate of redevelopment in Eugene. ? Per the discussion of definitions above, a desirable measure of residential redevelopment would be the number of dwelling units built on land that was (i.e., was not classified as vacant). already classified as developed ? If one had a measure of the of redevelopment for some historical period, amount then one could convert that amount to some type of in several different rate ways. One way would be to divide the amount of dwellings considered to be redevelopment by the total number of dwelling units built for the same period. That is what ECO did in its previous report (and what has been referred to as a demand-side treatment of redevelopment), estimating that between 11% and 14% of all housing units built between 2001 and 2008 could be classified as redevelopment. Alternatively, one could divide the same estimate of 29 redeveloped dwelling units by some measure of the total (theoretical) capacity of Eugene’s developed land to accommodate greater density. Such a measure would say something like “between 2001 and 2008 Eugene used X% of the theoretical capacity of its developed residential land.” That is more of a supply- side ratio. ? The request by some CAC members for a more detailed supply-side analysis of redevelopment is a request that the likelihood of redevelopment over the 20- not year planning period be estimated for every developed tax lot in Eugene, or that some analysis be done to define and identify a subset of specific developed tax lots that have a “strong likelihood” of redevelopment. Such an analysis would be expensive, speculative, and beyond what has been done in any other Oregon planning exercise that we know of. Paul Conte sent a memorandum describing his proposed methodology in detail on July 7, 2009. We are still 28 reviewing the details he proposes. Based on the methods he discusses, it seems that there is general agreement about the logic, data, and methods for doing the redevelopment analysis the way that ECO has proposed. As noted later in this memorandum, because we have changed (improved) the definition of redevelopment as 29 part of work subsequent to making that calculation, those estimates change a little, but in concept they are calculated the same way. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 41 ? The supply-side analysis is not required by state law. Its potential value is that it may provide a more detailed tracking of the categories of tax lots that are assumed to be contributing to redevelopment, which could help respond to questions about UGB capacity in the event that some of those tax lots are re- zoned in the future. Ideally, a complete supply-side analysis might create multiple redevelopment rates: rates that might be specific to plan designation, lot size, or other characteristics. Where there may not be agreement among all CAC members and City staff is 30 whether supply-side analysis has benefits that exceed its costs. Depending on the amount of disaggregation desired, generating redevelopment rates for many combinations of zoning and land attributes could take quite a bit of time. More important, even if it were no extra effort, that level of detail creates yet more detail for debate and challenge. We noted at a CAC meeting that this type of analysis is like fractals: turning up the magnification does not reduce complexity or uncertainty. Assume that a good-faith effort was made to describe historical amounts of redevelopment by plan designation (e.g., LDR, MDR) and to compare those amounts to the total theoretical capacity by plan designation. How does that theoretical capacity get estimated? A simple technique would be to multiply all land in a zone (say, LDR) by the maximum allowed capacity. But we know that there are many reasons that much of that land will not develop to its maximum. It may be constrained by slopes, for example: we could bring in a slope layer from the GIS and make some assumptions. It may be constrained by other policy overlays, for example: we could try to identify all those, map them where possible, and from the some assumptions about the impact on capacity. Both of those types of issues are ones we have dealt with for vacant land. But the land may be constrained by parcel configuration, the location and size of the building footprint, or the types and locations of uses in surrounding parcels: we have no easy way to deal with those issues globally—they require parcel-specific analysis. And, finally, it is clear that market conditions affect the likelihood of redevelopment and thus, by definition, the capacity of any developed tax lot to contribute new dwelling units to the housing stock. The concern of City staff and the consultants is that what may start as a relatively simple exercise to estimate capacity in some theoretical aggregated and generalized sense will become, little by little, a complicated exercise to get to a more estimate of capacity, with no clear technical end to the refinedactual legitimate debate and the analysis that could inform it. Given all these points, and after evaluating them in more detail than this summary provides, City staff directed the consultants to proceed as follows regarding redevelopment: We cannot say, because we are writing this memorandum in response to CAC comments, but in advance of 30 having met with the CAC to get its reaction to the points we are making. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 42 1.Treat “infill” as a subset of “redevelopment.” 2.Measure the combined amount of historical redevelopment using the methods described in earlier memoranda. In summary, use data from LCOG’s address file to estimate the number of new residential addresses that were added between 2001 and 2008 to tax lots identified as developed in 2001. There are some assumptions we will have to make to do that, but they are explainable and defensible. LCOG believes that the address file is very accurate and that this method of estimating redevelopment makes sense. We (ECO) believe that this will be the first study to have used this advanced method, that it will give accurate results, and that it will be the best information available in any study of this type about the actual amount of residential redevelopment (as defined by state rules) that occurred over a specific, identified period. 3.Use the estimate of the amount of historical redevelopment to create a rate that can be used as a baseline forecast for estimating future redevelopment. For example, if 800 new dwelling units (as identified by new residential addresses) were added over an eight-year period (2001 to 2008, inclusive), then redevelopment accounted, historically for an average of 100 dwelling units per year; if that rate is used for the baseline forecast, then about 2,000 new dwelling units will be built on developed land over the 20-year planning period. 4.Subtract the units estimated to be provided via redevelopment during the planning period (in the example above, 2,000 dwelling units) from the total needed (based on calculations described earlier in the memorandum) to get an estimate of the number of new dwelling units that will be built during the 20-year . planning period on land defined as “vacant” in the LCOG BLI The next section describes results of our implementation of the first two sets, and the resulting estimate of the historical rate of redevelopment. R ESULTS Historical residential redevelopment includes lots that had addresses coded before 2001 and received additional addresses after 2001. ECO used the following criteria to identify residential redevelopment: (1) lots that had one or more address prior to 2001; and (2) lots that had additional addresses on the lot after 2001. Plan designation and zoning were not used as selection criteria. Rather, new residential units were identified by land use categories and improvement type. This methodology is consistent with the definition of redevelopment presented in the previous section. Table C-1 shows that between 2001 and 2008 a total of 722 new dwelling units occurred on tax lots that already had dwellings. Of these, 213 were on lots that had retirement homes, and 220 were on lots that had single-family dwellings. All of the remaining units were on lots with some type of multi-family dwellings. Beth du/650 infill du)The infill rate (based on this definition) is about 10% (6500 interested in that type of development.The data seem suspect, and I don't think we are that I eliminated some classes of DU: all mobile homes and hotels. increase might be of interest.The densities don't really mean much, although the marginal ECLA: Baseline Assumptions ECONorthwest July 2009 Page 43 Table C-1. Residential redevelopment: new dwellings on developed lots, Eugene UGB, 2001-2008 Existing Existing Unit TypeDUNew DU Apartment With 1 To 4 Units13381 Apartment With 20 Units or More33944 Apartment With 5 To 19 Units38977 Condominiums or Townhouses352 Quad1110 Retirement Home170213 Single Family Housing230220 Two Family Housing Unit-Duplex7275 Total1379722 Source: LCOG taxlot and address data; analysis by ECONorthwest Table C-2 shows residential redevelopment by plan designation for the period between 2001 and 2008. The results show that the majority of residential redevelopment (78%) occurred in the Low-, Medium-, and High-density residential plan designations. About 16% occurred in commercial plan designations. Table C-2. Residential redevelopment by plan designation, Eugene UGB, 2001- 2008 Existing DwellingsNew Dwellings Plan DesignationNumberPercentNumberPercent Low Density Residential28421%19627% Medium Density Residential84661%22531% High Density Residential13410%14520% Medium Density Res Mixed131%101% Mixed Use101%71% Commercial594%11216% Commercial Mixed Use121%91% Government & Education121%101% Parks and Open Space91%81% Total1379100%722100% Source: LCOG taxlot and address data; analysis by ECONorthwest In summary, ECO identified 722 new dwellings that were constructed on lots with existing dwellings between 2001 and 2008. New dwellings constructed on lots with pre- existing development is among the best indicators of redevelopment available because it provides an actual unit count of new housing by housing type for the analysis period. This number may overestimate the actual redevelopment on these lots; some new dwellings may have been part of a phased development—particularly apartments. ECLA: Baseline Assumptions ECONorthwest July 2009 Page 44 Despite these limitations, we feel this indicator is one of the more reliable redevelopment indicators. Based on the results we estimate that about 720 new dwellings were constructed between 2001 and 2008 that could be considered redevelopment. This is about 11% of all housing production during the 2001 to 2008 period. ? Potential range of assumption: The data suggest that approximately 11% of all housing production during the 2001 to 2008 period were the result of redevelopment. ? CAC and TAC discussion: CAC has discussed the redevelopment analysis at the May and June CAC meetings. These discussions are on-going but expected to be concluded soon. ? Current technical recommendation for baseline assumption: We recommend assuming about 11% of all new housing will be accommodated through redevelopment, about 1,650 new dwelling units. ? Data source: LCOG GIS data and City of Eugene Planning Department’s building permit data.