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HomeMy WebLinkAboutZMA200600019 Action Letter 2007-10-10 --------\..-\ 1 '-A. ' \ . ".. ....-- .. \ COUNTY OF ALBEMARLE Department of Community Development 401 McIntire Road, North Wing Charlottesville, Virginia 22902.4596 Fax (434) 972-4012 Phone (434) 296-5832 October 22, 2007 Valerie W. Long 321 East Main Street, Suite 400 Charlottesville, VA 22902 RE: CPA2006-00003 & ZMA # 2006-00019 Willow Glen (Signs # 27 & 29) Tax Map 32, Parcels 49F, 49G, 491, 49J, 49K Dear Ms. Long: Reaardina CPA2004-00003 The Albemarle County Board of Supervisors approved your Comprehensive Plan Amendment to change the land use designation from Industrial Service to Urban Density Residential and to make this latter designation a part of the Places 29 Master Plan. Reaardina ZMA2006-00019 The Board of Supervisors approved your rezoning application by a vote of 6-0 on October 10, 2007. Your rezoning from Rural Areas to Planned Residential District was approved in accordance with the Application Plan dated September 17, 2007 and the attached proffers dated September 17, 2007. Please refer to these documents for any future applications and requests on this property. Please be advised that although the Albemarle County Board of Supervisors took action on the project noted above, no uses on the property as approved above may lawfully begin until all applicable approvals have been received and conditions have been met. This includes: . compliance with applicable PROFFERS; . approval of and compliance with SITE PLAN(S) and/or SUBDIVISION PLAT(S); and . approval of a ZONING COMPLIANCE CLEARANCE. If you have questions or comments regarding the above-noted action, please do not hesitate to contact Sherri Proctor at 296-5832. Sincerely, ()~ V. Wayne Cilimberg Director of Planning Cc: Sugaray Two, LLC 690 Berkmar Circle, Charlottesville, VA 22901 Dickerson Ridge LLC 690 Berkmar Cir, Charlottesville, VA 22901 Tex Weaver Chuck Proctor (V DOT) Steve Allshouse Sherri Proctor Sarah Baldwin Bruce Woodzell (Real Estate) David Benish Proffers binder File PROFFER STATEMENT Date: October 10, 2007 ZMA#: 2006-19 Willow Glen Tax Map and Parcel Numbers: Map 32, parcels 49F, 49G, 491, 49J and 49K 23.681 Acres to be rezoned from Rural Areas to Planned Residential Development in accord with the Application Plan entitled "Willow Glen" prepared by Terra Concepts, PC, dated September 17, 2007 Dickerson Ridge LLC, a Virginia limited liability company, is the fee simple owner (the "Owner") of Tax Map 32, Parcels 49F, 49G, 491, 49J, and 49K(the "Property") which is the subject of the zoning map amendment application #ZMA-06-19 known as "Willow Glen." The Applicant for Willow Glen is Sugaray Two, LLC, a Virginia limited liability company. The Willow Glen community is herein referred to as the "Project." Pursuant to Section 33.3 of the Albemarle County Zoning Ordinance, Owner hereby voluntary . proffers the conditions listed in this Proffer Statement, which shall be applied to the Property if the rezoning is approved by Albemarle County. These conditions are proffered as part of the rezoning and it is agreed that the conditions are reasonable. 1. Affordable Housine:. The Owner shall provide affordable housing equal to fifteen percent (15%) of the total residential dwelling units within the Project in the form of for sale or lease affordable dwelling units (the "Affordable Dwelling Units" or "Affordable Units"). The Affordable Dwelling Units shall be comprised of one or more of the following unit types: single- family attached housing (townhouses or duplexes) or condominiums. The Owner or its successor in interest reserves the right to provide the Affordable Dwelling Units in a variety of ways, utilizing the abovementioned unit types alone or in combination as outlined below. A. For-Sale Affordable Units. The for-sale Affordable Dwelling Units shall be affordable to households with incomes up to eighty percent (80%). of the area median family income (the "Affordable Unit Qualifying Income"), such that the housing costs consisting of principal, interest, real estate taxes, and homeowner's insurance (pIT1) do not exceed thirty percent (30%) of the Affordable Unit Qualifying Income, provided, however, that in no event shall the selling price of such affordable units be required to be less than the greater of One Hundred Ninety Thousand Four Hundred Dollars ($190,400) or sixty-five percent (65%) of the applicable Virginia Housing Development Authority (VHDA) maximum mortgage for first-time home buyers at the beginning of the 90-day identification and qualification period referenced below. The Owner or his successor in interest may at its option facilitate the provision of down payment assistance loans to reduce the out-af-pocket cash requirement costs to the homebuyer, such as, but not limited to a "silent" second lien Deed afTrust, so that the resultant first mortgage and housing costs remain at or below the parameters described herein. All financial programs or instruments described herein must be acceptable to the primary mortgage lender. Any "silent" second lien Deed of Trust executed as part oHhis paragraph shall be donated to the County of Albemarle or its designee to be used to address affordable housing. For purposes of calculating the price of the Affordable Dwelling Units, the value of Seller-paid closing costs shall be excluded from the selling price of such Affordable Dwelling Units. B. For-Lease Affordable Dwelling Units. (i) The initial net rent for each for-rent Affordable Unit shall not exceed the then- current and applicable maximum net rent as published by the County Housing Office. In each subsequent calendar year, the monthly net rent for each for-rent Affordable Unit may be increased up to three percent (3%). For purposes of this proffer statement, the term "net rent" means that the rent does not include tenant-paid utilities. The requirement that the rents for such for-rent Affordable Units may not exceed the maximum rents established in this Proffer IB shall apply for a period often (10) years following the date the certificate of occupancy is issued by the County for each for-rent Affordable Unit, or until the units are sold as affordable units as defined by the County's Affordable Housing Policy, whichever comes first (the "Affordable Term"). (ii). Convevance of Interest - All instruments conveying any interest in the for- lease Affordable Dwelling Units during the Affordable Term shall contain language reciting that such unit is subject to the terms of this Paragraph I(B). In addition, all contracts pertaining to a conveyance of any for-lease Affordable Dwelling Unit, or any part thereof, during the Affordable Term, shall contain a complete and full disclosure of the restrictions and controls established by this Paragraph I (B). Prior to the conveyance of any interest in any for-lease Affordable Dwelling Unit during the Affordable Term, the then-current owner shall notify the County in writing of the conveyance and provide the name, address and telephone number of the potential grantee, and state that the requirements of this Paragraph I (B)(ii) have been satisfied. (iii). Reporting Rental Rates. During the Affordable Term, within thirty (30) days of each rental or lease term for each for-rent Affordable Unit, the then-current owner shall provide to the Albemarle County Housing Office a copy of the rental or lease agreement for each ,such unit rented that shows the rental rate for such unit and the term of the rental or lease agreement. In addition, during the Affordable Term, the then-current owner shall provide to the County, if requested, any reports, copies of rental or lease agreements, or other data pertaining to rental rates as the County may reasonably require. C. Phasing of Affordable Units. Each subdivision plat and site plan for land within the Property shall designate the lots or units, as applicable, that will, subject to the terms and conditions of this proffer, incorporate Affordable Units as described herein, and the aggregate number.of such lots or units designated for Affordable Units within each subdivision plat and site plan shall constitute a minimum of twelve percent (12%) of the lots in such subdivision plat or site plan. Notwithstanding the foregoing, "however, the Owner may "carry-over" or "bank" credits for Affordable Units in the event an individual subdivision plat or site plan designates affordable units that in the aggregate exceed the twelve percent (12%) minimum for such subdivision plat or site plan, and such additional Affordable Units may be allocated toward the twelve percent (12%) minimum on any future subdivision plat or site plan, provided however, 2 that the maximum number of Affordable Units that may be carried over or banked shall not exceed twelve percent (12%) ofthe total units on any subdivision plat or site plan. D. Notification Period: Countv Cash Option. (i). Notification Period. All purchasers of the Affordable Dwelling Units shall be approved by the Albemarle County Office of Housing or its designee. The then-current ownerlbuilder shall provide the County or its designee a period of ninety (90) days to identify and pre-qualify an eligible purchaser for the Affordable Unites). The ninety (90) day period shall commence upon written notice from the then-current owner/builder that the Unites) is within one hundred twenty (120) days of completion and, that on or before the end of such one hundred twenty (120) day period shall be ready for occupancy. If the County or its designee does not provide a qualified purchaser who executes a contract of purchase during this ninety (90) day period, the then-current owner/builder shall have the right to sell or lease the Unites) without any restriction on sales or lease price or income of the purchaser(s), provided, however, that any Unites) sold or leased without such restriction shall nevertheless be counted toward the number of Affordable Units required to be provided pursuant to the terms of this proffer. The requirements of this proffer shall apply only to the first sale of each of the Affordable Dwelling Units that are purchased. Nothing herein shall preclude the then-current owner/builder from working with the County Housing Department prior to the start of the notification periods described herein in an effort to identify qualifying purchasers for the Affordable Units. (ii). County Ootion for Cash In Lieu of Affordable Units. If at any time prior to the County's approval of any prelim.inary site plan or subdivision plat for the Property which includes one or more for-sale Affordable Dwelling Units, the Housing Office informs the then- current ownerlbuilder in writing that it may not have a qualified purchas'er for one or more of the for-sale Affordable Dwelling Units at the time that the then-current ownerlbuilder expects the units to be completed and that the Housing Office will instead accept a cash contribution to the Housing Office to support affordable housing programs in the amount of Nineteen Thousand One Hundred Dollars ($19,100) in lieu of each affordable unites), then the then-current owner/builder shall pay such cash contribution to the County prior to obtaining a certificate of occupancy for the unites) that were originally planned to be Affordable Dwelling Units, and the then-current ownerlbuilder shall have the right to sell the Unites) without any restriction on sales price or income of the purchaser( s). If all of any portion of the cash contribution has not been exhausted by the County for the stated purpose within five (5) years of the date it was contributed, all unexpended funds shall be refunded to the party that contributed the funds. For the purposes of this proffer, such Affordable Dwelling Units shall be deemed to have been provided when the subsequent ownerlbuilder provides written notice to the Albemarle County Office of Housing or its designee that the Affordable Unites) will be available for sale. E. Inspections. The County shall have the right, upon reasonable notice and subject to all applicable privacy laws, to periodically inspect the records of the Owner or any successors in interest for the purposes of assuring compliance with this paragraph 1. 3 2. Cash Proffer. A. The Owner shall contribute cash to the County in the following amounts for each dwelling unit constructed within the Property that is not an Affordable Dwelling Unit. The cash contributions shall be used to address the fiscal impacts of development on the County's public facilities and infrastructure (i.e., schools, public safety, libraries, parks and transportation) identified in the County's Capital Improvements Program. The cash contributions shall be paid prior to issuance of a building permit for the category of units described in this paragraph 2 in the following amounts: (i). Seventeen Thousand Five Hundred Dollars ($17,500) for each single-family detached dwelling unit; (ii). Eleven Thousand Nine Hundred Dollars ($11,900) for each single family attached dwelling unit that is not an Affordable Dwelling Unit. (iii). Zero Dollars ($0.00) for each Affordable Dwelling Unit The cash contribution for each such unit shall be paid prior to or at the time of issuance of the building permit for each unit, as applicable. B. Annual Adiustment of Cash Proffers. Beginning January 1, 2008, the amount of each cash contribution required herein shall be adjusted annually until paid, to reflect any increase or decrease for the preceding calendar year in the Comparative Cost Multiplier, Regional City Average, Southeast Average, Category C: Masonry Bearing Walls issued by Marshall Valuation Service (alk/a Marshall & Swift) (the "Index") or the most applicable Marshall & Swift index determined by the County if publication of the specific index referenced herein in discontinued. In no event shall any cash contribution amount be adjusted to a sum less than the amount initially established by these proffers. The annual adjustment shall be made by multiplying the proffered cash contribution amount for the preceding year by a fraction, the numerator of which shall be the Index as of December 1 in the year preceding the calendar year most recently ended, and the denominator of which shall be the Index as of December 1 in the preceding calendar year. For each cash contribution that is being paid in increments, the unpaid incremental payments shall be correspondingly adjusted each year. 3. Connection to Town Center Drive. The Owner shall complete construction of an extension of "Road D" as shown on the Application Plan as a vehicular connection to the future Town Center Drive in the area shown on the Application Plan, to the standards contained in Sections 14-410H and 14-422 of the County Code and shown on the sheet of the Application Plan entitled "Conceptual RoaqSections" (the "Town Center Drive Connection"). The Town Center Drive Connection shall be completed by the later to occur of: (a) eighteen (18) months after issuance of a final site plan approval for the first phase of the Project; or (b) eighteen (18) months after the owner of tax map parcel 32-50 dedicates to public use the public right-of-way detemllned to be appropriate by VDOT and the County Engineer for the Town Center Drive Connection, and also dedicates to the Owner all drainage, construction and other easements necessary for the Owner to construct the Town Center Drive Connection.. For purposes of this proffer 3, construction of the Town Center Drive Connection shall be deemed complete when it is ready to be recommended 4 .. by the Albemarle County Board of Supervisors for acceptance into the state-maintained system, and the Owner has obtained from the County Engineer a written determination that the Town Center Drive Connection is safe and convenient for traffic. The Town Center Drive Connection may be shifted from the area shown on the Application Plan to a location more suitable to both the Owner and the County which still provides access from Willow Glen to Town Center Drive, upon approval of the County Engineer and the Owner. Owner: DICKERSON RIDGE LLC, a Virginia Limited Liability Company BY:~ WITNESS the following duly authorized signatures: ~- Printed Nam~ W Title: ~~~ 1416781vlO 5 - .~~ , COUNTY OF ALBEMARLE EXECUTIVE SUMMARY AGENDA TITLE: CPA 2006 - 003 /ZMA 2006 -019 Willow Glen SUBJECT /PROPOSAL /REQUEST: Applicants have applied for a Comprehensive Plan Amendment (CPA) and a Zoning Map Amendment (ZMA) to construct Willow Glen, a residential development of 234 units, with community amenities STAFF CONTACT(S): Cilimberg, Benish, Echols, Wiegand LEGAL REVIEW: NO AGENDA DATE: October 10, 2007 ACTION: X INFORMATION: CONSENT AGENDA: ACTION: INFORMATION: ATTACHMENTS: YES OWNER /APPLICANT PURCHASER; Dickerson Ridge, LLC, is the owner; Sugaray Two, LLC is the applicant, with Valerie W. Long of Williams Mullen as contact; and Terra Concepts, PC as the land planners. BACKGROUND: The Planning Commission held four worksessions and a public hearing on the Willow Glen CPA /ZMA. Minutes of these worksessions and public hearing were attached to the Executive Summary for the Board's worksession on September 5, 2007. On January 23, 2007, the Planning Commission also adopted a Resolution of Intent (ROI) by a vote of 5 — 2. A copy of that Resolution was included with the Executive Summary for the Board's Worksession on September 5, 2007. On September 5, 2007, the Board held a worksession on Willow Glen. The Board addressed two questions during that worksession for which staff and the applicant requested direction: In view of this information, does the Board agree with the Commission's recommendation that the Comprehensive Plan be amended as part of Places 29 to show this area as Urban Density Residential? The Board did not reach consensus on the Commission's recommendation. Instead, the Board suggested that the applicant return for a public hearing with the best project proposal plan and proffers that they could offer that would warrant the change, and indicated that the Board would consider the appropriateness of the Comprehensive Plan amendment at the public hearing. 2. Does the Board expect the full cash proffer with all funds devoted to capital improvements as recommended by the Planning Commission, or is the Board willing to accept the applicant's proffer of moderately priced units, reduced cash proffers for those units, and cash proffers for transit and a Housing Load Fund in lieu of capital improvements? The Board directed the applicant to offer the full amount of cash proffers with all funds devoted to capital improvements as recommended by the Planning Commission. STRATEGIC PLAN: Strategic Objective 1.2. By June 30, 2010, working in partnership with others, increase affordable housing opportunities for those who live and /or work in Albemarle County. DISCUSSION: The applicant is requesting two actions from the Board of Supervisors: 1. A Comprehensive Plan Amendment that would change the designation of the five parcels from Industrial Service (and Urban Density Residential), to Urban Density Residential. 2. A Zoning Map Amendment to rezone the five parcels from Rural Areas to Planned Residential District. In addressing these two actions and in light of the Board's direction at the September 5, 2007 worksession, staff would like to make the following two points: Affordable Housing Proffer. The applicant has proffered to construct 35 units or 15% of the proposed 234 units as affordable. This complies with the County's affordable housing policy. A copy of the Willow Glen proffers is attached as Exhibit B. The Willow Glen project, which has indicated that it wants to be a unique development addressing several levels of affordable housing need, is now committing to only the amount of affordable housing that is expected from any residential development in the County (15 %). The applicant is not proffering any moderately priced housing or the four price tiers that were part of the original proposal. The applicant has indicated verbally that they will try to provide the four price tiers and a variety of unit types, but there is no assurance being made to the County. Thus, if the CPA and ZMA are approved, the County is not assured that the development will be any different than other recently approved residential rezoning projects in the County. This calls into question whether the applicant has provided a project proposal that the Board feels warrants a change of the Comprehensive Plan from Industrial Service to Urban Density Residential. Staff opinion is that it does not, based on the Board's comments at its Willow Glen worksession. 2. The Need for Industrially Designated and Zoned Land in the County. The Planning Commission has recommended that the Comprehensive Plan Amendment be incorporated into the Places29 Master Plan process and that the land use designation for the Willow Glen area be changed from Industrial Service to Urban Density Residential. At its last worksession on Willow Glen, some of the Board members questioned this change in light of the County's current industrial and residential land inventories. The Board indicated an interest in additional information. Susan Stimart, the County's Business Development Facilitator, has completed an analysis of the amount of industrial land available in the County. A copy of the report is included in Attachment I. To summarize the points made in the report, the County has less than 100 acres in the four Northern Development Areas (the Places29 area) that are 1) designated Industrial Service in the Comprehensive Plan, 2) zoned Light Industrial, and 3) vacant. This 100 -acre figure does not include acreage in mixed -use districts, which, if included, increases the total number of designated, zoned, and vacant acres to 266. As stated in Susan Stimart's report, light industrial businesses are looking for vacant property that is already appropriately designated and zoned. This enables them to build to suit their needs; they do not need to go through the risk of a time - consuming and potentially expensive rezoning process before they can build. Small businesses like many of these are looking for readily available space. In contrast to the need for industrially designated and zoned property, the County's Comprehensive Plan gives the following information on residential units in the four Northern Development Areas (the Places29 area): Existing dwelling units (1996): 8,124 Additional units that could be built in residentially designated areas: 4,804 — 12,592 TOTAL units possible under Comprehensive Plan (at buildout) 12,928 — 20,716 The applicants have claimed that, even though the property is designated Industrial Service, it had been on the market for four years and is too expensive for potential industrial users. Staff would like to point out that the Rural Areas zoning would mean that any user would have the additional time and expense of a rezoning. Further, if an owner expects that a prospective purchaser can change both the designation and the zoning on the property, the owner will set a price based on a more lucrative use. Staff would also like to point out, in response to the representative of the Deerwood subdivision who expressed preference for residential rather than industrial development (at a Planning Commission worksession), any Light Industrial development would be required to provide a 50 -footl buffer between the industrial development and an adjacent residential neighborhood. The required buffer between a Heavy Industrial development and an adjacent residential development is 100 feet. Also, changing the designation of the Willow Glen property to Urban Density Residential would be another in a series of land use designation revisions in this area over the last 15 or so years that have removed industrial land, leaving an isolated 6 -plus acre area to the north that is currently designated Industrial Service. It would be very difficult for a prospective industrial business to locate building(s), parking, and the necessary buffers on a property this small, likely meaning this remaining acreage also is changed to residential. In addition to the entrance onto Dickerson Road, the applicant has proffered a second connection to Towncenter Drive. Until Towncenter Drive is built, the proffered connection cannot be made. The site plan requirement for a second means of ingress /egress for more than 50 units is not waived with approval of this project. Minor wording changes to the proffers that have been requested by the County Attorney's office are expected on signed proffers before the public hearing RECOMMENDATIONS: The Planning Commission has recommended approval of CPA 2006 -003 and ZMA 2006 -019 essentially as now proposed by the applicant. However, in consideration of the Board's discussion at its prior worksession on this project and the applicant's project proposal, as well as information on industrial and residential land inventories, staff does not feel this project warrants a change of the Comprehensive Plan. Without this change, the rezoning for Willow Glen should not be approved. Should the Board decide to approve CPA 2006 -003, staff recommends ZMA 2006 -019 only be approved with a change to the cash proffer that removes the stipulation that, "The cash contributions shall be used for schools, libraries, fire, rescue, parks or any other public use serving the Hollymead Community identified in the County's Capital Improvements Program." ATTACHMENTS: Attachment I: Report: Light Industrial Demand Analysis Attachment II: Willow Glen Proffers, dated October 1, 2007 Attachment III: Willow Glen Application Plan, dated October 1, 2007 Light Industrial Demand Analysis Introduction The demand for light industrial land is a function of several variables that are inherently different from the variables that affect market demand for residential or commercial /retail uses. Commercial /retail is driven primarily by demographics and " psycho - demographics" (purchasing habits by demographic). Industrial markets, on the other hand, are linked to cost factors, such as land, labor, capital, and access to supporting industry (i.e., goods and services sometimes considered "clustering" or sometimes parts of the supply- chain). Further complicating an analysis of market demand is the variation in types of light - industrial use. In a report Guide to Classifying Industrial PropertM, the Urban Land Institute groups the types into three primary categories of industrial use, 1) manufacturing and freight buildings, 2) warehouse distribution and flex space and 3) multi- tenant buildings to reflect three main types of owners. ULI classifies these uses in the three categories to account for research showing corresponding levels of risk by type of owner, "there are differences in investment performance for each industrial category" (ULI, 109). The owners of manufacturing and freight buildings commonly own their facilities and generally are less likely to change a location. Institutional investors own warehouse distribution, which are the most "commodity- like," and flex space, which offers lower rents than commercial or office buildings. The third category includes smaller buildings that are owned by private investors and are multi- tenant buildings; these multi- tenant buildings are generally known as ideal locations for small contractors. According to ULI, of all the types, the multi- tenant is the most difficult to categorize and to track data about because there is little historical investment or market data (ULI, 10). A closer look at an increasingly important user of light - industrial land, the biotech industry, shows an industry average space consumption of 500SF /employee, in contrast to office space average of 250SF /employee. This suggests that, while employment in some sectors of manufacturing has declined, one user of light - industrial land, manufacturing, typically requires more square footage than with average office - commercial development, and more land. Land Use Designation in the Comprehensive Plan The comprehensive plan allows for light - industrial uses under "Industrial Service." Uses allowed within this designation include warehousing, light industry, research, heavy industrial uses, as well as uses allowed under Office Service. Commercial uses are allowed as a secondary use. Residential uses may be appropriate in the Industrial Service designation if such uses are compatible with the nearby and adjacent Industrial Service uses. Industrial Service designation requires appropriate site size, 5+ acres, arterial road accessibility, water and/or sewer availability, and compatibility with adjacent uses. In addition to the general standards, the following standards are recommended to guide industrial development. These standards apply to light and heavy industrial uses, warehousing, "flex" type of uses, and research/development /technology centers having characteristics more in keeping with industrial uses. ATTACHMENTI 1. Industrial zoning districts should be permitted only in designated Communities and Urban area. 2. While single -use industrial sites must be accommodated, re- zonings which propose multiple sites served by common access points should be encouraged. 3. Mixtures of residential, commercial and industrial uses may be appropriate where objectionable aspects can be addressed through a combination of performance standards. 4. Industrial uses should locate in areas where public utilities and facilities are adequate to such uses. 5. Rezoning to industrial designations of 20 acres or more should be accomplished under a planned approach accompanied by a traffic analysis. Land Zoned Light Industrial Land zoned light industrial is expected to be more affordable land, generally speaking, with use restrictions that diminish its utility when compared to land used for commercial - retail or housing. In Albemarle County, light industrial zoning uses are generally consistent with ULI's definitions and can be divided into those which are by -right and those which require a special use permit. The County's Zoning Ordinance Section 27 Light Industrial, contains a lengthy list of by right uses. An abbreviated list includes 1) compounding drugs and biological products, 2) manufacturing, 3) major publishing, 4) research and development, 5) technical or scientific education facilities, 6) assembly, 7) contractor's office and storage yard, 8) business and professional office buildings, and 9) warehousing. With a special use permit, laboratories, airports, assembly of modular building units, moving businesses, towing and storage, supporting commercial uses, and indoor athletic facilities are all allowed in light industrial districts. An additional requirement for establishment of an LI district is a minimum area of five (5) acres. Any applicant seeking to establish an LI district would be prohibited from doing so on a parcel of less than 5 acres, unless that parcel adjoins an existing LI district. A GDS analysis of parcel data shows a comparison of properties that are both designated Industrial Service in the Comprehensive Plan and zoned for light industrial. Parcels that are both designated and zoned for industrial use are ready for an industrial owner or tenant. Parcels with only an Industrial Service designation, but not LI zoning, are more likely to be subject to speculation for other zoning districts, such as residential. Per the 5 -acre minimum requirement for rezoning, some parcels cannot be rezoned to match the Comprehensive Plan designation. See the table below. Table I - Albemarle County Acreage_for Light Industry Activity Area Total IS Total LI Both IS & LI Vacant IS Vacant LI Vacant IS & LI Places 29 1,234 305 266 901 93 88 Crozet 37 124 17 4 64 3 Remaining County 211 599 128 31 176 20 Total County 1,481 1,027 411 935 333 111 1. IS = Industrial Service in the Comprehensive Plan, LI = Light industrial zoning 2. Acreage totals are based on GIS- mapped polygons 3. Any acres in the 100 -year flood plain covered were subtracted out and are reflected in these totals 4. "Undeveloped" refers to building improvements values listed in CAMA greater than or equal to zero and less than or equal to $20,000 5. End of year 2005 CAMA data was used for this analysis, compiled by GDS Current Ownership & Uses In contrast to the supply of designated and zoned industrial land, a review of LI ownership is helpful in characterizing current parcel sizes. Staff in the County's Geographic Data Systems (GDS) division identified current owners of all properties zoned LI in Albemarle County. See Attachment 1, Industrial Land Ownership and Sales. Taking out the UVA Research Park shows an average parcel size of four (4) acres and a median parcel size of two (2) acres, generally too small for economical development. Of the sales dates identified the average year sold was 1997, excluding the place holder date 1900. Over time new LI work space has become available as new buildings have built out in the UVA research parks and as existing buildings have been vacated and adapted for reuse. The table below shows an overview of new or newly adapted space in recent years. Table 2 - New and Adapted LI building space in Albemarle County Place Name Building Project (new construction) Adaptation/Re-Use University of Town Center One (70,563 SF) Virginia Town Center Two (83,555 SF) Research PRA (82,577 SF) Park formerly Biotage (52,000 SF) known as MicroAire Surgical Instruments UVA (46,000 SF) Research Motion Control (25,000 SF) Park at North Emerging Technology Center One Fork (41,778 SF) Fontaine R &D, UVA Health Services (495,000 Research SF) Park Avon Bio -tech and local contractor Extended services Place Name Building Project (new construction ) Adaptation/Re-Use Comdial Restrictions, notes Defense contractors, R &D (500,000SF Music Today LI Adapted from ConAgra Table 3 below indicates an approximation of acreage actively marketed in Albemarle County for new tenants and/or buyers. This data is provided by local commercial realtors. Several locations have environmental hazards; one is constrained from expanding by its location in the rural area. The University parks require tenants to maintain a research relationship. Avionics Specialties and Badger both require building adaptation, Avionics also requires removal of asbestos. The last, Comdial, is leasing as a multi- tenant building. Avon Court and the property near Sunbelt are currently under development, in the site planning stages. Table 3 - Available, "Marketable" Space for Supporting Local Services and Major Industry Place Name Acres Zoning Comp Plan Restrictions, notes Avon Court 7 LI IS None North Fork 435 PDIP IS Research affiliation Fontaine 54 PDIP IS Research affiliation Earl sville Business Park 8 LI Rural Area In the rural area Acme Visible Records 30 LI District Environmental contamination, railroad crossing Avionics Specialties 10 LI Institutional Environmental hazards Badger 6 LI IS Environmental Below Sunbelt Rentals, Rt. 29 12 LI IS None ConAgra 10 LI District, CT -4 None Grand Piano Warehouse 11 LI Community Service EnviromnentaLLandfill hazards Comdial 25 LI I IS None, multi- tenant office uses Source: County View Another demand measure is the office market, since office is permitted in LI -zoned property. A recent study published by the Appraisal Group indicated that the combined market of Charlottesville and Albemarle County had an overall office- rental vacancy rate of 6.6 %. To compare to national average, the Appraisal Group cites Cushman and Wakefield's reported a national average for the first quarter of 2007 of 9.9% for central business districts and 14.3% for suburban office markets. Broken into quadrants, the Appraisal Group reported office- rental vacancy rate of 9.8% for the northern area (roughly corresponding to Places 29) and a market share of 33.8% Table 4 - Sample Size Totals For Charlottesville Albemarle O ice Space Sector Total Area (SF) Vacant Area (SF) Vacancy Rate North 1,245,008 122,011 9.8% East 532,429 22,425 4.2% West 779,176 7,792 1.0% UVA/Downtown 1,131,395 130,110 11.5% Totals 3,688,008 282,338 6.6% Source: The Appraisal Group, Inc., "Office Market Review" 2007 Perhaps the best measure of demand for light industrial land is available by documenting major businesses that have been turned away, due to lack of space, or a lack of a relationship with the University research programs. Field data indicates the companies listed below have been turned away since 2004. Some local companies are looking and finding no expansion options, and for this reason, these companies are considering moving out of the County. The list below was compiled from the University Real Estate Foundation, the Thomas Jefferson Partnership for Economic Development, and from Hasbrouck Realty. The average size parcel request is in the range of 9 to 10 acres. See the list below for space requests. Table S - Space Requests, 2004 to 2009 NL Novalink, 100,000 SF. on 10 acres, 2006 (North Fork prospect) Harmon Becker, 100,000 SF on 12 acres, 2004 (North Fork prospect) Christi's looking for 80,000 SF of warehouse on 3 acres, 35 foot ceiling, summer of 2007 Vest Excavating looking for 30 acres, recycling wood, summer 2007 Carter Machinery looking for 3 acres with visibility, summer 2007 Hertz Machinery looking for 3 Ares with visibility, summer 2007 Local company, looking for 20 acres, 2008 Local biotech, looking for 3 acres, in 2009 Second local biotech, looking for 4 acres in 2008 Anecdotal examples such as these suggest that the availability of LI -zoned land is an issue in Albemarle County, but there is a second issue that the County needs to recognize. This second issue involves the likely LI -zoned land price differentials that exist between Albemarle and the surrounding counties in our region. LI -zoned land prices likely are higher in Albemarle than in the outlying counties. If the magnitude of these price differentials is large, the County might have a difficult time retaining or attracting LI businesses. A critical issue facing the County, then, involves whether or not Albemarle could increase the supply of LI -zoned land to the point at which the price differentials either would disappear or at least would diminish enough to cease being a deterrent to the retention or location of LI businesses. Clearly, this issue merits further research. Labor The second factor in determining location for light industrial property is labor. Virginia enjoys a favorable business climate as a right -to -work state. Among the local labor force there have been some losses and gains in the sectors of industry that typically occupy light - industrial space: manufacturing, bio -tech, office, and construction. The tables and data below provide a measure of recent trends in labor. Table 6 - ManufacturinQ Emnlovment Losses Company Peak Employment Departure Date Comdial 1,200 2001 ConAgra 890 Acme Visible Records 220 Badger 189 2007 Siemens 625 Avionics Specialties 200 2007 Cooper Industries (Murray) ** 1991 * These companies left prior to June, 2005 ** This data is unavailable Source: County phone surveys, VEC data The Virginia Employment Commission (VEC) tracks employment by classification, using the North American Industrial Classification (NAIC) two -digit code. The VEC industry sector called "Professional and Technical Services" shows fairly constant employment in Albemarle County and captures some of the bio -tech jobs. At the four -digit level, bio -tech is showing strong positive employment growth. The following average annual growth rates were derived from VEC's 1990 and 2005 employment data: Professional and Technical Services employment averages 10.8 % per year, for a total of 2,252 jobs in 2005 Bio -tech employment growth by 4 -digit NAICS code is averaging 16% per year among the 23 companies identified, for a total of 250 jobs in 2005) Fourth largest segment of the County employment base at 6.8% or 3,080 jobs, local contractor employment growth is averaging 2.5% per year. This sector grew considerably during the housing boom of recent years; employment growth in this sector likely will slow, or the sector might even experience actual declines in employment, in the next couple of years. Transportation and warehousing employment is only 1% percent of the total County employment base at 555 jobs, growing a modest rate of 3.5% per year Access to Supporting Industry Airport, rail, highways, and access to raw materials can be critical to a location decision. But also, the overall costs of business can be lowered if there is a sufficient base of supporting industry, services providers, and contractors. A close examination of zoning code violations in the Rural Area reveals some trends for supporting industry to start as home -based businesses in the Rural Area and then grow to a point of creating nuisance for their neighbors. For the last two years, a tally by type of business shows 9 auto repair and tow services; 10 painting, plumbing and contracting services; and 5 miscellaneous services (junk yard, salvage). This provides some indication of locally supporting industry that would be better located in land designated and zoned for light industrial activity. It should be pointed out that a few of the types of small businesses mentioned in this paragraph might not be willing and able to pay the costs of making a transition to a "formal" LI location. Anecdotal information from several local service companies recently leaving the area suggests, however, a shortage of land for companies that support homeowners and commercial businesses alike. Conclusion Similar to national trends, there are three emerging trends among local users of light industrial land: 1) Some manufacturing and service users have recently moved out of Albemarle County 2) The high -tech and bio -tech sector are showing strong growth in our region 3) Users of multi- tenant buildings (contractors, maintenance and repair services) and warehouse space needs are growing to meet local demand for services and goods The demand for light industrial is highly dependent on factors affecting operating costs: land, labor and capital, as well as access to customers and support services. One of the key factors, land, is clearly in short supply given that land both designated Industrial Service and zoned light - industrial only accounts for 121 acres of the County's build -able, vacant land. Generally, LI users will choose to locate where product is ready, available, and sufficiently plentiful for an affordable supply. Again, the question facing the County involves the extent to which Albemarle can increase the supply of land designated and zoned LI to the point where this type of acreage becomes affordable relative to comparable acreage nearby counties.