CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: May 2, 2022 Action Required: Consideration of an application for a Special Use Permit Presenter: Dannan O’Connell, City Planner, Neighborhood Development Services Staff Contacts: Dannan O’Connell, City Planner, Neighborhood Development Services Title: SP22-00003 – 207 14th Street NW, request for a Special Use Permit to allow hotel use Background: William Chapman, contract purchaser of Tax Map 9 Parcels 70.1 thru 70.21 (“Subject Property”) has requested a special use permit on the Subject Property to establish a hotel use. The Subject Property is currently zoned B-1 and is the location of a 21-unit condominium apartment building. The Applicant wishes to renovate the existing building to accommodate a 19-unit hotel with one residential apartment. Discussion: The Planning Commission considered this application at their meeting on April 12, 2022. The discussion centered on the affordability of the existing housing units as well as displacement of existing tenants to accommodate the change in use from multi-family to hotel. The staff report and supporting documentation presented to the Planning Commission can be found starting at page 70 at the following link: https://civicclerk.blob.core.windows.net/stream/CHARLOTTESVILLEVA/a17abf45-ea5e-4d27- b99f-d0316a223144.pdf?sv=2015-12- 11&sr=b&sig=XuxhTZBhJapZsHy%2Fy3l%2Foa0P2VTQvp4%2BqldcrJksAsk%3D&st=2022- 04-18T15%3A53%3A20Z&se=2023-04-18T15%3A58%3A20Z&sp=r&rscc=no- cache&rsct=application%2Fpdf Alignment with City Council’s Vision and Strategic Plan: The City Council Vision of Economic Sustainability states that “Our community has an effective workforce development system that leverages the resources of the University of Virginia, Piedmont Virginia Community College, and our excellent schools to provide ongoing training and educational opportunities to our residents. We have a business‐friendly environment in which employers provide well‐paying, career‐ladder jobs and residents have access to small business opportunities. The Downtown Mall, as the economic hub of the region, features arts and entertainment, shopping, dining, cultural events, and a vibrant City Market. The City has facilitated significant mixed and infill development within the City.” The applicant proposes to retrofit an existing multi-family building, originally constructed as a motel, back to a commercial hotel use. The surrounding area contains significant mixed commercial and residential development, including several hotel uses. The City Council Vision of Quality Housing Opportunities for All states that “Our neighborhoods retain a core historic fabric while offering housing that is affordable and attainable for people of all income levels, racial backgrounds, life stages, and abilities. Our neighborhoods feature a variety of housing types, including higher density, pedestrian and transit-oriented housing at employment and cultural centers. We have revitalized public housing neighborhoods that include a mixture of income and housing types with enhanced community amenities. Our housing stock is connected with recreation facilities, parks, trails, and services.” The applicant proposes to retrofit existing condominiums into a hotel, resulting in a net loss of 20 multi-family dwelling units. Adequate off-site and on-site parking is available to meet the parking requirements for the proposed use. The subject property is located within an Architectural Control District, and while no structural changes are proposed, a Certificate of Appropriateness will be required to accommodate any exterior renovations. Community Engagement: Per Sec. 34-41(c)(2), the applicant held a community meeting on January 17, 2022. (A City Planner was able to attend as a NDS representative). No members of the public attended the meeting to speak on the application. The Planning Commission held a joint public hearing with City Council on this matter on April 12, 2022. No members of the public spoke on the application. The Planning Commission did receive two public comments by email prior to the meeting, voicing concerns about the loss of naturally affordable housing units and displacement of existing residents. Budgetary Impact: No direct budgetary impact is anticipated as a direct result of this Special Use Permit. Recommendation: Staff recommends the application be approved. The Planning Commission voted 3-2 to recommend the application be denied. Alternatives: City Council may approve, deny, or indefinitely defer the requested Special Use Permit: (1) Approval: “I move to approve the RESOLUTION Granting a Special Use Permit for Property Located at 207 14th Street N.W. (City Tax Map 9, Parcels 70.1 through 70.21).” (2) Denial: “I move to deny the special use permit requested within zoning application No. SP22-00003.” (3) Deferral: “I move to defer Council action on zoning application No. SP22-00003.” Attachment (1): Proposed Resolution RESOLUTION Granting a Special Use Permit for Property Located at 207 14th Street N.W. (City Tax Map 9, Parcels 70.1 through 70.21) WHEREAS William Chapman (“Applicant”) is the contract purchaser of certain land identified on Tax Map 9 as Parcels 70.1 through 70.21, collectively currently addressed as “207 14th Street NW” (the “Property”), and the Applicant is requesting a Special Use Permit to adapt the use of the Property to a 19-guest-room hotel (“Project”); and WHEREAS the Applicant seeks a Special Use Permit under City Code Sec. 34-480 to change the use of the Property from a twenty one (21) dwelling unit multifamily (condominium) residential building to a hotel containing nineteen (19) units and one (1) residential apartment; and WHEREAS the Property is located within the B-1 (Commercial) zoning district, a district in which, according to the Use Matrix set forth within City Code 34-480, hotels may be authorized by City Council by means of a special use permit; and WHEREAS the Project is described in more detail within the application materials submitted in connection with SP22-00003, as required by City Code §34-158 (collectively, the “Application Materials”); and WHEREAS, the Planning Commission and City Council conducted a joint public hearing, after notice and advertisement as required by law, on April 12, 2022; and WHEREAS the Planning Commission considered and recommended denial of this application at their April 12, 2022 meeting; and WHEREAS upon consideration of the Planning Commission’s recommendation, the City Staff Report, comments received at the public hearing, as well as the factors set forth within Sec. 34-157 of the City’s Zoning Ordinance, this Council finds and determines that granting the proposed Special Use subject to suitable regulations and safeguards would serve the public necessity, convenience, general welfare or good zoning practice; now, therefore, BE IT RESOLVED by the Council for the City of Charlottesville, Virginia, THAT a Special Use Permit is hereby granted to allow the Project to be established on the Property, subject to the following conditions: (1) The Project shall consist of a hotel use containing not more than nineteen (19) guest rooms for transient occupancy (as defined in City Code 34-1200) and one (1) dwelling unit for residential occupancy (as defined in City Code 34-1200). (2) Prior to commencement of any work within the existing building, the owner of the Property (“Landowner”) shall submit an amended site plan for the Property, depicting parking (on-site and off- site), landscaping, and utility line changes for the hotel use. (2) Automatic fire sprinklers, alarms, and appropriate means of egress shall be provided within the Project, in accordance with applicable requirements of the Virginia Uniform Statewide Building Code. (3) The Landowner shall submit a signed long-term lease agreement verifying off-site parking that satisfies the requirements of City Code 34-973 and/or 34-974, as applicable, to the City’s Zoning Administrator, prior to final approval of the amended site plan referenced in Condition #2, above.