FBCC approves density increase for Central Business District on First Reading with unanimous vote

Fernandina Beach City Hall

Submitted by Suanne Z. Thamm
Reporter – News Analyst
January 6, 2017 3:48 p.m.

 

At its first Regular Meeting of the New Year on Tuesday, January 3, 2017, the Fernandina Beach City Commission (FBCC) tackled an issue that has been looming for several years: downtown residential density. For many years property owners in the Central Business District have expressed frustration over not being able to profitably rent empty spaces above retail stores along Centre Street and the close-in blocks of side streets. The community has also expressed a need to provide more affordable housing for service industry workers and housing for those who would like to rent or purchase small residential dwellings to live downtown in a walkable community.

After months of study by city staff, a recommendation from the city’s Planning Advisory Board (PAB), and public input, commissioners voted to approve Ordinance 2017-2, a Comprehensive Plan amendment to increase downtown residential density from 8 dwelling units per acre to 34 units per acre. The ordinance will now be submitted to the state for comment and approval. It will not return to the FBCC for Second Reading until it comes back from the state. The Second Reading will probably be scheduled in March.

In recommending this item for approval at their December meeting, the PAB expressed concern over parking related issues. They provided clear direction to city staff that they wanted to address parking matters at their next meeting, scheduled for January 11, 2017. It was the PAB’s goal that both downtown residential density and parking ordinances, although separate items, could track together through the FBCC and state approval process.

Area of coverage

The proposed increase in residential density only affects the Central Business District, zoned C-3 in the city’s zoning code, and roughly located between Alachua and Ash Streets and between 8th Street and the Amelia River. Surrounding properties in the residential area of the downtown Historic District retain their residential zoning and the 8 units per acre residential density.

Official zoning map of the city of Fernandina Beach. The Central Business District (C-3) is marked in maroon.

 

What would change with residential density increase downtown?

Building owners along the Centre Street corridor have been mostly unsuccessful to date in renting out what could be attractive living space above storefronts, despite demand for such space. There are several reasons for this. Although current density would generally allow one rental space above a retail shop, the cost of meeting current code requirements for a dwelling unit would not prove cost effective to a property owner, who would be charging high rent for an apartment that would in many cases be as large as a single family dwelling.

If the density increase were eventually approved, the property owner would be able to increase residential dwelling units from one to two over many Centre Street and other Central Business District properties.

By doubling the number of rental units available in the Central Business District, housing opportunities for downtown service workers, retirees, and those in search of living in a walkable community near restaurants and entertainment increase. With an increase in residential population, availability of other services and amenities should follow. Examples include a grocery store, a pharmacy, dry goods, etc. The residents of the neighboring areas of the Historic District and Southside neighborhoods would also enjoy such increased amenities.

Both city staff and local developers believe that it is highly unlikely that the full density increase would ever be realized, both due to the need to provide onsite parking for new construction and the unsuitability of many buildings in the Central Business District for residential components.

All other code requirements regarding building height, buffering, etc. remain unchecked. The maximum allowable height for buildings in the C-3 district is 45 feet, roughly the height of the Chandlery Building. In comparison, the Post Office Building is roughly 65 feet in height. In that zoning district, buildings are permitted to be built from the zero lot line.

Public comment

Dr. Chip Ross

Reaction from the public during First Reading of the proposed density increase was mixed. Nine people spoke, with four strongly in support and five wavering between conditional support and expressing the need first for more information.

Dr. Chip Ross, former PAB member, asked that all studies and population estimates used by staff in making this recommendation be made public in accordance with state law. He claimed that there is a dearth of information to enable the public to understand the need for the change.

Faith Ross

Faith Ross followed her husband. She said that she was not opposed to increasing the number of residential units above historic store buildings from one to two units, citing common practice in earlier days when storeowners lived above their stores. Her concerns were directed toward new construction in that zoning district, which would allow four story structures, which she believe were incompatible with the current 2-story development pattern.

Jeff Kurtz, Fernandina Beach Main Street Director

Jeff Kurtz, Director of Fernandina Beach Main Street, expressed support for the move, which he believed would both protect the historic downtown and help merchants and building owners. He said that there is a strong demand for downtown housing, and that even with the change, there would not be a large increase in downtown residential population. He reminded commissioners that if instead property owners used their second stories for offices, such a move would generate even more traffic downtown and further exacerbate the parking issue.

Developer Spurgeon Richardson expressed support for the change. He said that for downtown to survive and thrive it needs a balance of commercial and residential buildings. He said that he is working on a project to replace the existing boathouse property on the corner of Ash and Second Streets with a 3-story building that would contain 14-15 residential units over a parking area. It would also include a roof top bar. He suggested that this would be a better use of the property than replacing the current boathouse with a 45-foot high, 50,000 square foot commercial building built lot-line to lot-line, allowable under current ordinances.

Mike McCluskey

Developers Mike McCluskey and Chip Sasser spoke next. They are the owners of various downtown properties including the property formerly occupied by Fred’s Department Store on 8th Street. McCluskey said that developers could do one of two things with that property: leave it commercial, or if the proposed density increase is approved, add some housing elements to the property as well. Citing a desperate need for downtown housing, McCluskey said, “You wouldn’t believe the number of people who would love to live in downtown Fernandina. They want to be able to walk places. We have all the infrastructure we need on [Fred’s] property; it’s just being wasted right now. It just makes sense to make this change. It’s a chance for the city to move forward and provide housing opportunities for a lot of people who want to be a part of the wonderful experience we have of downtown Fernandina.”

In response to a question from Commissioner John Miller, McCluskey reaffirmed his commitment to save and protect “Fred’s tree” as part of any redevelopment plans for the property.

Chip Sasser

Chip Sasser expanded on the efforts that he and McCluskey have undertaken to care for the famous tree on the former Fred’s property. They have hired an arborist, removed moss, dead branches and fern growth to improve the tree’s health.

“It’s too late for Fernandina to roll up the bridge; the secret is out,” Sasser said. “People all over know that this is a great place to live and visit, and they are coming fast.”

He said that having increased density in the central business district is “City Planning 101.” It is not a new idea, he said, but one that characterizes most American urban areas. “It increases the tax base and reduces urban sprawl,” he added. “Buildings like Fred’s need to be converted. We don’t need to leave it as the eyesore it is. We want to help transform the 8th Street corridor, but we need your help to make it happen. It’s a math game. And we can’t make it happen with the current density limit.”

Trudy Richardson

Attorney Clinch Kavanaugh also spoke, reinforcing the benefits of living downtown. He suggested that if the city would use 3-D modeling as a planning tool, it could help people better understand the visual look of downtown under the increased density numbers. Julie Ferreira followed Kavanaugh and agreed with him. She objected to discarding the density formula that emerged from city visioning sessions during the creation of the downtown Community Redevelopment Area (CRA). She called for more public workshops and public input.

Trudy Richards was the final speaker. She expressed sympathy for the need for workforce housing downtown, but worried that without strong design guidelines, increasing density could lead to uglier new buildings.

Commission discussion 

Senior planner Kelly Gibson reminded commissioners that restrictions on view corridors and building height, including height above flood plain, would remain under the proposed changes in residential density.

Vice Mayor Len Kreger expressed the need for a coherent downtown master plan to deal with all the outstanding issues in the Central Business District and the CRA. He said, “We need to do a better job of telling people where [the city] is going and how it is going to get there.” With respect to specifically providing for areas of affordable housing downtown, he and Gibson agreed that the city could mandate that. But, Kreger added, taking such an action would require “political will.”

Kreger spoke to the amount of “bad information” floating around the community. “We get people all up in arms,” he said, “when it doesn’t need to be that way.”

Commissioner John Miller raised concerns about residents complaining about commercial noise and activities when they live on or in a commercial area. He asked what could be done to stem complaints. “When people move downtown, they are going to have to realize that that certain conditions go along with that,” he said. “When people move into a “loud area,” they are going to have to know that’s part of the scene. Can we do anything to preempt that?”

City Clerk Caroline Best (l) and Senior Planner Kelly Gibson.

Gibson replied that there were no conditions for real estate transactions to secure agreement from purchasers to noise or activity levels. “It is really a case of ‘buyer beware’,” she said.

Commissioners Tim Poynter (l) and John Miller

Commissioner Tim Poynter reinforced that downtown development needed to be economical for property owners to support new development. He said that a Centre Street property owner had remarked during a Main Street Economic Development Committee meeting that day that he had a 2500 square foot space above retail space, but that under current conditions he could not convert it to an apartment because the rent would be more than $3,500 per month. “If you are able to divide one unit into two,” Poynter said, “clearly you will be able to reduce the rent.”

Poynter said that he has lived in the city for 17 years and has heard complaints about the fact that there is no affordable living space downtown. But when City Commissions try to address the problem, they get nowhere. He cited the previous example of the proposed Lane development in the CRA, which was ultimately abandoned. In that case developers said that in order to meet all the city requirements for density and development, any new residential created would be in the million-dollar range. “That land has now been sitting empty for 8 years,” he said. “Everybody wants downtown, affordable housing. There is a huge need for it. But the city isn’t doing anything to try to make that happen. Because doing what we are currently doing, obviously isn’t working. That’s why this commission last year said that one of its goals is to increase downtown residential density.”

Mayor Robin Lentz presides while City Attorney Tammi Bach and City Manager Dale Martin look on.

Mayor Robin Lentz added that even with a change in the density ordinance, it would not be easy to create more affordable living space downtown because of the need to meet other code and building permit requirements. She expressed concern that the parking issue will still be a barrier in helping the goal be realized.

 

Suanne Thamm 4Editor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.