TABLE OF CONTENTS

FOR CITY COUNCIL PACKET

october 21, 2008

The October 22, 2008 Formal Meeting has been Cancelled.

 

 

WORK STUDY SESSION AGENDA

1.	Council Information and Follow-up Requests
2.	Adaptive Reuse Update
3.	Development Services Department Financial Update

 

 

Packet Date:  October 17, 2008

 

 

CITY COUNCIL REPORT
WORK STUDY SESSION AGENDA
TO:	David Cavazos Deputy City Manager	AGENDA DATE:		October 21, 2008
FROM:	Mark Leonard Interim Development Services Director	ITEM:	2
SUBJECT:	ADAPTIVE REUSE UPDATE

 

The purpose of this report is to update the Mayor and City Council on the accomplishments of the Adaptive Reuse Task Force including the results to date of several adaptive reuse pilot projects.

 

Adaptive reuse of existing buildings preserves our history, contributes to economic vitality, and creates more vibrant neighborhoods.  The Adaptive Reuse Task Force proposes a series of simplified processes, potential code/ordinance changes, and code clarifications that will save time and money on adaptive reuse projects while maintaining building safety.  Customer input was sought and incorporated into the Task Force proposals.  In addition, staff training on the International Existing Building Code to ensure consistent application on adaptive reuse projects is complete.  Further details are contained within this report and attachments.

 

BACKGROUND

 

“Adaptive reuse” is defined as a development project that requires building permits to modify an existing structure for new commercial purposes.  At the April 22, 2008, Work Study Session, Development Services staff presented strategies to enhance services for small businesses which are undertaking the adaptive reuse of existing buildings.  The City Council directed staff to create an Adaptive Reuse Pilot Program; approved creation of an interdepartmental Adaptive Reuse Task Force; authorized implementation of the short term strategies presented by staff; and requested an update on progress in the fall of 2008. 

 

The Task Force included key staff from the City departments that are involved in development regulation as well as representatives from the Mayor and City Council Offices.  (Attachment A provides a listing of the Task Force members.)

 

ISSUES/ ACTION

Customer/Partner Input.  In order to ensure the Task Force focused on revising requirements that would benefit the adaptive reuse customer, input was solicited from a customer focus group and the Downtown Artists Issues Task Force.  Design professionals, small business owners, community leaders, and representatives from the artist community who have had direct experience with adaptive reuse were invited to the focus group to share their perspectives and recommendations. In addition, the members of the Downtown Artists Issues Task Force transmitted a “Top 10” list of codes and practices which they found to be impediments to the economic feasibility of adaptive reuse projects.

 

Accomplishments.  The Task Force members created a work plan that is a compilation of recommendations from members of the Downtown Artists Issues Task Force, the customer focus group, and staff.  The work plan identifies the City department responsible for implementing and tracking the progress of each item.  Some of the items listed are the practices and strategies brought forward to City Council last May.  Work plan items are grouped into four categories: code-related, site-related, process changes, and education.  The work plan summarizes the status of the items and indicates staffs’ recommendation for inclusion in a permanent program.  (The detailed work plan is shown in Attachment B.)

 

The work plan contains significant accomplishments that meet the goal of safety and quality development while providing the customer with practices and ordinance changes that reduce costs and timeframes.  Highlights of these accomplishments include the following:

 

·        Amend the fire code to provide relief from sprinkler requirements for adaptive reuse projects that do not exceed 1,500 square feet and meet certain criteria.  In addition, a Fire Protection Engineer will review all adaptive reuse projects regarding sprinklers, fire hydrants and access requirements for the most efficient yet safe application.  This could result in significant cost savings for projects.

 

·        Clarify what constitutes a change of occupancy in accordance with building codes and provide distinction between art spaces used for retail purposes versus gallery functions.  This building official interpretation will minimize the application of several code requirements and reduce construction costs.

 

·        Remove the requirement for a separate water meter and use the existing domestic line to connect new sprinkler systems.  This will reduce construction costs and time.

 

·        Ease parking requirements when possible based on site conditions and building uses.  This will be done on a pilot basis.  A permanent change will require a text amendment.  This will result in the installation of less paving, space savings on the site, and a reduction of storm water retention requirements.

 

·        Modify the administrative section of the building code to allow extended vacancies of a facility without requiring a new Certificate of Occupancy.  This will reduce or eliminate the need to obtain a building permit when not changing occupancy of a building which has been vacant for up to three years resulting in time and cost savings.

 

·        Process a building code amendment to reduce the number of toilet room fixtures needed in certain occupancies and allow optional calculation methods to be used. This will reduce construction costs.

 

·        Accept an evaluation report certifying the existence of minimum life safety requirements instead of requiring a full set of drawings for a building permit.  This will reduce the cost of preparing construction drawings.

 

·        Accelerate historic preservation and zoning adjustment approval processes resulting in significant time savings in project timeline.

 

·        Diminish the need for additional site improvements other than parking requirements where projects include interior remodeling only.  This reduces overall project costs.

 

·        Reduce the storm water retention requirements in certain cases, and developing alternative methods for retention compliance resulting in cost savings.

 

·        Eliminate the repair of broken curbs, gutters and sidewalks if less than one half inch vertical displacement exists.  This eliminates a permit fee and the need to hire specially licensed contractors to work in the right of way.

 

·        Allow existing driveways to remain without modification unless on an arterial or collector street.  This eliminates a permit fee and the need to hire specially licensed contractors to work in the right of way.

 

·        Establish that the International Existing Building Code (IEBC) can be used without requesting approval from the Building Official. 

 

·        Training on the application of the IEBC was completed resulting in more proficient staff that can encourage the use of the IEBC and educate design professionals on the benefits.

 

The development of an Adaptive Reuse Manual for staff is underway.  This will help with the understanding and consistent application of specific policies and ordinances created to assist in the development of adaptive reuse projects.  Also, a marketing effort will be launched once a permanent program is established which will include posting of adaptive reuse information on the City’s website and creation of a customer adaptive reuse brochure.

 

Pilot Projects.  A goal of the Adaptive Reuse Pilot Program was to apply new strategies and processes to actual projects to determine their impact.  The Pilot Program criteria required that projects must be designated for commercial use; the building should be 2,500 square feet or less; and the projects be located generally in the downtown area of 7^th Street to 7^th Avenue from McDowell to Lincoln and Grand Avenue from 7^th Avenue to 19^th Avenue.

 

Currently, there are 15 projects included in the Pilot Program in various stages of development.  Most of these projects are restaurants or galleries, and a few are multi-use projects.  The majority of the new processes have been applied to these projects, but in many cases we have not yet seen the direct impacts due to the limited duration of the program.  Several of the projects have experienced notable savings in time and/or costs due to the new adaptive reuse strategies.  Staff estimates that: Taco America saved approximately $13,000 and five weeks of time; the Tuck Shop saved approximately $10,000 and four weeks in time; the Grandevelt saved approximately $16,000 and twelve weeks in time, and a music studio & gallery saved approximately $40,000 and eight weeks of time. (Attachment C identifies specific projects, the practices applied and the benefits realized by the small business owner.)

 

Survey of Best Practices.   Development Services conducted a national survey of 15 U.S. cities of various sizes and geographic regions to determine best practices and tools used to create community vibrancy through adaptive reuse of buildings.  Based on the results of the survey, only the City of Los Angeles has specific ordinances and programs for adaptive reuse projects, however, their adaptive reuse codes focus on residential, not commercial development.  Most cities focus on planning tools and financial incentives that are geographically based to facilitate redevelopment.  In addition, many cities use adaptive reuse of buildings as a component of specific neighborhood or regional development.  The City of Phoenix already has established programs like this in place through designated Redevelopment Areas, Zoning Overlays and Special Districts. 

 

The Task Force concluded that the best course of action for the City is to continue to evaluate development requirements and generate new ordinances, policies, and practices that facilitate adaptive reuse.  The concept used by Los Angeles to merge all adaptive reuse practices, policies, codes and ordinances into one comprehensive program will be evaluated as a potential approach for Phoenix. (Attachment D contains a summary of the survey of best practices.)

 

Permanent Program Approach.  The Adaptive Reuse Pilot Program was initiated in the April 2008 Work Study Session.  It focused on a defined downtown geographic area and a maximum 2,500 square foot facility.  The Adaptive Reuse Task Force recommends that the program be expanded citywide for existing buildings up to 5,000 square feet, 25 years in age or older, with some restrictions on uses on which City resources should not be devoted.  The Task Force further recommends the City Manager’s Office be given the authority to grant exceptions to the criteria as necessary to meet the goals of the Downtown Redevelopment Area. (Attachment E contains details of the permanent program definition for consideration by City Council.)

 

RECOMMENDATION

 

Staff recommends continuing the Adaptive Reuse Pilot Program as a permanent program, expanding it citywide, and incorporating the definition contained in Attachment E.  Staff also requests endorsement of building and fire code amendments and zoning ordinance text amendments contained in Attachment B that will be presented to the City Council separately for formal adoption at later dates.  Finally, staff recommends continuation of the Adaptive Reuse Task Force to monitor the program for one year at which time a status report will be made to City Council.

 

ATTACHMENTS:

A - Task Force Roster

B - Task Force Work Plan

C - Adaptive Reuse Pilot Projects

D - Summary of Best Practices Survey Results

E - Permanent Program Definition

Attachment A

 

Adaptive Reuse Task Force Roster

 

Participants	Department
Mark Leonard, Chair	DSD
David Cavazos	CMO
Dennis Murphy	CMO
Mitchell Hayden	BCSC
Michelle Pierson	CEDD
Cynthia Seelhammer	City Council Office
Jason Harris	DDO
Denée McKinley	DSD
Derek Horn	DSD
Tom Wandrie	DSD
Kevin Roche	Fire
Barbara Koffron	Fire
Kevin Weight	HP
Ruth Osuna	Mayor’s Office
Jerome Miller	NSD
Erynn Crowley	NSD
Debra Stark	Planning
Michelle Dodds	Planning
Chaun Hill	Streets
Carlos Padilla	WSD
Ray Quay	WSD

 

Categories 1.   Code Related 2.   Site Related 3.   Process Changes 4.   Education		Attachment B          CITY OF PHOENIX Adaptive Reuse Work Plan				Item Legend P -  Pilot Actins S -  Strategies D - Downtown Artists Issues Task Force F -  Focus Group O - Other
Category	Responsible Dept.	Item Number	Description	Pilot Program	Permanent Program
Building Code	DSD	P-3/ S-7    & D-7	Establish interpretation of building code that clarifies occupancy category for artist galleries and studios which operate similar to retail or office uses.  This will minimize application of several building code requirements to an existing facility	The Building Official wrote an Interpretation on how to make correct assessment of occupancy classification. This significantly reduced the number of art spaces needing a change of occupancy. Staff training completed.	The interpretation completed by the Building Official will become part of the permanent program
Building Code	DSD	P-4 / D-8	Establish an interpretation of the building code that outlines all options available to the customer for the number of toilet fixtures and type of restroom facilities.	The Building Official wrote an Interpretation to clarify options for restrooms which reduces number of new toilet fixtures needed in certain facilities. Staff training completed.	Interpretation regarding district bathrooms, unisex & accessible restrooms will continue under permanent Program. Additionally, a building code Amendment is in process to reduce the number of toilet room fixtures needed in certain occupancies
Fire Code	Fire	S-4/D-10/ O-8/F-1	Review the 2500 square footage threshold requirements for sprinkler systems in commercial buildings.	Multiple concepts considered. Specific Fire Protection Engineer assigned to Adaptive Reuse to consider special circumstances & provide consistency on all Fire related code requirements (i.e. sprinklers, spacing for hydrants, site accessibility).	Fire will continue with assignment of specific Fire Protection Engineer. They will pursue a fire code amendment to provide relief for adaptive reuse projects with specific occupancies that do not exceed 1500 square feet & have specified openings for fire access.
Building Code	DSD	D-6/F8	Increase the time-frame for existing buildings that are vacant before a new change of occupancy is required.	Staff is pursuing a building code amendment through DAB to increase from 1yr to 3 yrs	When building code amendment is approved, apply to permanent program
Building Code	DSD	P-2/S-9	Develop a method to allow combining parcels under common ownership where existing buildings cross lot lines without a separate code modification.	The Building Official wrote an interpretation so a modification to code is not needed. Staff training completed.	The new simplified method for allowing parcel combinations will continue under the Permanent Program.
Building Code	DSD	D-2	Less intense uses in existing buildings should not trigger a Change of Use or require a new CofO.	The Building Official  wrote an interpretation that a CofO is not needed when a lesser hazard classification is involved. Only the items proposed for modification/construction need to meet current code standards.	The interpretation completed by the Building Official will become part of the permanent program. It will be expanded to clarify the applicability to sprinkler requirements.