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ITEM  3 Planning & Zoning Commission      Development Services  Memo No. 24-059         Date: October 16, 2024 To: Planning and Zoning Commission Thru: Kevin Mayo, Planning Administrator David de la Torre, Planning Manager From: Lauren Schumann, Planning Senior Program Manager Subject: PLH24-0036 Commercial Building Adaptive Reuse Policy

Proposed Motion:

Move Planning and Zoning Commission recommend approval of city policy establishing objective standards to allow multi-family residential development or adaptive reuse of existing commercial, office, or mixed-use buildings on parcels at least one (1) acre in size but not larger than twenty (20) acres without requiring a public hearing, if the developer provides ten (10) percent of the total dwelling units for either moderate-income or low-income housing for at least twenty (20) years, as recommended by Planning staff.

Background/Discussion

In May 2024, Governor Hobbs signed and authorized House Bill 2297 Commercial Building; Adaptive Reuse  The bill is mandated for municipalities with populations exceeding 150,000 and municipalities must comply by January 1, 2025 Under HB 2297, municipalities may identify or exclude ten percent of existing commercial, office, or mixed-use developments that would allow redevelopment of residential without public hearing (i.e., the Rezoning/Preliminary Development Plan process) The proposal is to exempt areas where the policy could not occur to protect employment corridors and the historic downtown district; land within the FAA airspace traffic patterns and vicinity of airports are exempt from adaptive reuse per the bill. Eligible properties must have existing commercial, office, or mixed-use buildings on parcels at least one (1) acre in size but not larger than twenty (20) acres. Per state law, eligible non-residential properties can develop as residential with no public hearing if a minimum of 10% of the total number of units are reserved for moderate-income or low-income housing for at least twenty years.  Development standards including parking and building setbacks must comply with multi-family requirements within the zoning code. The maximum permitted density shall be equal to any multi-family development within one-mile of the building to be redeveloped. The height may not exceed five-stories.  When located within 100 feet of single-family, height is limited to two-stories. Methodology Utilizing the City of Chandler's Geographic Information System (GIS) database, staff identified all commercial, employment, office and mixed use buildings within the City of Chandler; 3,249 buildings were identified  Unincorporated parcels were not accounted within the total  Per HB 2297, land in the vicinity of Federal Aviation Administration (FAA) licensed general aviation or public ariports were excluded (i.e., FAA Traffic Pattern Airspace for the Chandler Municipal Airport and Stellar Airpark)  City staff identified the following areas to protect (collectively 128 buildings or 2.99% of existing buildings):  Price Road Corridor from the Santan Freeway to Chandler Heights Road Southeast corner of Arizona Avenue and SanTan 202 Loop Freeway due to its location within the Chandler Airpark Area Plan, which prohibits new residential uses to protect future operations of the airport Historic Downtown colonnade buildings The remaining buildings, a total of 2,721 or 63.7% of existing commercial, office, or mixed-used buildings, would be eligible under the policy HB 2297 allows modification or re-classify of the policy every ten years Public Outreach  This request was noticed in accordance with the requirements of the Chandler Zoning Code

Attachments Commercial Building Adaptive Reuse Policy Map Building Analysis HB 2297 Commercial Building Adaptive Reuse DRAFT Commercial Building Adaptive Reuse Policy

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