Wednesday, August 15, 2018

Proposed Housing Caps in Prince George’s New Zoning Code Threaten Mixed-Use Development

Photo by Plainurban on Flickr
As part of its effort to create a new, modern zoning ordinance to replace its bloated and antiquated half-century-old code, Prince George’s County is proposing a series of new mixed-use zones to encourage more development around transit. That’s good news—but if these new zones are going to thrive, they need to include more homes.

The current legislative draft proposes five mixed-use “Transit-Oriented/Activity Center” zones, all of which encourage walkable urbanism and transit-oriented development at varying scales. These zones “strongly encourage” mid-rise (generally three to seven stories tall) mixed-use buildings, with apartments or condos located above shops, businesses, or offices.

Unfortunately, the county is also proposing restrictive caps on the number of dwelling units allowed in mixed-use zones. If developers are not able to include enough housing in their projects to get a good return on their investment, it will be nearly impossible for them to justify the higher costs and greater hassle of constructing mixed-use buildings in the county.

The Region is Looking for More Homes, Not More Offices

As a result of prevailing market forces in the Washington region, Prince George’s is not likely to see many mixed-use buildings with multiple stories of office space above retail in the foreseeable future—particularly outside of its three “downtown” Metro station areas at Largo Town Center, New Carrollton, and Prince George’s Plaza.

The region’s office market is already significantly oversupplied, and its 14.2% office vacancy rate is among the highest in the nation. Businesses and organizations are increasingly requiring fewer square feet per worker than they did in the past. Open floor plans, use of electronic data over paper files, and the increasing popularity of telework are all shrinking offices.

Photo by Ron Cogswell on Flickr

For these reasons, the success of Prince George’s efforts to bring more mixed-use, transit-oriented development into the county will hinge on its ability to encourage developers to focus on building apartments and condominiums over lower-floor retail and office uses.

Fortunately, there is a significant unmet need in the region for multifamily housing near transit, particularly for millennials and seniors. In addition, a recent change in the International Building Code now allows developers to build five- or six-story wood-framed mixed-use buildings over a concrete podium of one or more stories, up to 85 feet high. Using wood framing on the upper levels of mid-rise buildings, rather than steel or concrete, helps to bring down construction costs. The concrete podiums can accommodate ground-floor shops, offices, or parking.

The Housing Caps in the New Code Could Scare Off Developers

Ironically, although the stated goal of the new zoning ordinance is to facilitate more mixed-use development, the housing caps proposed in the new code are actually more restrictive than the ones in the current code.

For example, in the Local Transit-Oriented (LTO) zone, where half of the county’s 15 Metro stations will be located, housing densities are capped at 40-60 dwelling units per acre. Essentially that means that in a modest mid-rise building on a one-acre lot, with four stories of apartments over one story of retail, the apartment or condo units could be in excess of 2,500 square feet each! That’s bigger than the median size of newly constructed single-family detached homes, which is 2,426 square feet.

Density caps are a bit larger within a quarter mile of the Regional Transit-Oriented (RTO) zones, where the larger downtown Metro stations will be. But even those densities—ranging from 80-120 dwelling units per acre—are not conducive for the type of high-rise development contemplated for those zones.

The Palette at Arts District Hyattsville. Image from Google Earth.

To give a real-world example, consider The Palette, located in Arts District Hyattsville. This mid-rise mixed-use building has four stories of apartments over a multi-story concrete podium containing parking. Its site plan states that there are 198 multifamily units of varying sizes in the building, which sits on a 1.85-acre lot. That creates a residential density of 107 dwelling units per acre.

Under the newly-proposed mixed use zones, The Palette could neither be built in Arts District Hyattsville nor near most of the county’s non-downtown Metro station areas, because the development would exceed the applicable density caps.

Remember, even on a one-acre lot, it would be possible to build 200 apartments at 750 square feet each in a mid-rise, four-over-one-story mixed-use building. That is larger than most one-bedroom apartments currently built in this region. Alternatively, a developer could build 125 units at a more generous 1,200 square feet each, which is roughly in between the nationwide median square footage for multifamily rental (1,088 SF) and multifamily for-sale (1,494 SF) units.

Check out this PowerPoint by architect Tim Smith to see other examples of attractive mid-rise mixed-use buildings at densities over 100 dwelling units per acre.

The County Can Easily Fix This

A recent county-commissioned survey of developers found that the county’s comparatively low property values, high development impact fees, and cumbersome development review processes combine to make Prince George’s one of the most expensive places to build in the region. Likewise, even with the recent changes in the International Building Code discussed earlier, mixed-use development is still much more expensive to accomplish than traditional suburban sprawl. Imposing these low housing caps will only make it harder and less economically feasible for developers to build in the county.

Prince George’s has been working for nearly four years to develop this new zoning ordinance. It will bring a lot of essential changes to the county, and there is no reason why the county cannot pass this legislation this fall. Before it does so, however, the county should amend these mixed-use zones to allow more housing units to be built in mixed-use developments.

One solution would be for the county to eliminate the caps altogether in the new mixed-use zones. Charlotte’s mixed-use TOD zones take this approach by imposing minimum, but not maximum, residential density requirements.

Another approach (one that I urged the County Council to adopt) would be to calculate both residential and non-residential density limits based on a more flexible floor area ratio (FAR) standard, which is what DC does. This allows developers to divvy up the available square footage into the number of homes and shops that makes the most market sense.

With the housing density caps proposed in the new zoning ordinance, it is reasonable to anticipate that many profit-minded developers may simply choose not to build mixed-use buildings in Prince George’s County. The County Council should fix this.

The County Council is still taking comments on the proposed zoning ordinance. If you would like to weigh in with your thoughts on this or other issues, you may submit your written comments by email or via regular mail addressed to the Clerk of Council, CAB - 2nd Floor, 14741 Governor Oden Bowie Dr, Upper Marlboro, MD 20772.



A version of this post appeared on Greater Greater Washington.

Tuesday, June 26, 2018

Residents Want to See Development at Deanwood Metro

Deanwood Metro Station Parking Lot. Image by Google Earth.

WMATA held a public hearing last week on its proposal to eliminate the commuter parking lot at the Deanwood Metro Station and offer the 1.6-acre site for potential joint development. The public’s message to Metro was clear: they want to see mixed-use development on that site, but it needs to be the kind of the development that responds to the needs and desires of the current community, first and foremost.

As I discussed earlier this month in my post on Greater Greater Washington, the transit agency attempted to market this site twice before, in the late 1990s, but received no interest from developers. Now, nearly 20 years later, Deanwood is getting a lot of developer interest—so much so that residents are complaining about unsolicited knocks at the doors of their homes from speculators looking to buy their property.

About 75 community members from the District and neighboring Prince George’s County packed the meeting room at the Deanwood Recreation Center to participate in Wednesday’s hearing. WMATA’s public hearing docket describes a possible joint development scenario that would contain 160 multifamily dwelling units and 10,000 square feet of retail space. However, the selected developer would ultimately be responsible for proposing the actual type and scale of development and then obtaining the necessary approvals from the District of Columbia government.

Community’s Vision: Grocery-Anchored Retail and Market-Rate Housing

Based on the residents’ comments at the hearing, WMATA’s initial vision for the redeveloped Deanwood Metro parking lot may be a tad too small. In particular, residents wanted to see a larger retail component than the 10,000 square feet that Metro envisioned. Nearly all of the speakers stated that they wanted to see a full-service grocery store as part of this development, along with other neighborhood-serving commercial uses such as a coffee shop, bank, and perhaps a medical office. Likewise, Ward 7 councilmember and former mayor Vincent Gray has been a fierce advocate for more and better quality grocery stores in the area. According to industry estimates, the median size for a grocery store in 2015 was 42,800 square feet.

Another longtime Deanwood senior citizen resident said it would be nice for the development to have a neighborhood bar/restaurant where younger professionals could gather for a nice meal or a happy hour. At the same time, residents did not want a retail mix that would encourage excessive noise generation in the neighborhood. Also, while most commenters supported the complete elimination of the Metro commuter lot, as Metro is proposing, many felt that DDOT would need to step up its enforcement of neighborhood parking restrictions, to keep street parking available primarily for the use of area’s existing residents and guests.

Most commenters stressed that the residential component of the Deanwood mixed-use development should focus on market-rate housing units, rather than income-restricted affordable housing units. They believe that Deanwood already has some of the most inexpensive market-rate housing in the Washington region and that Ward 7 has seen a number of new mixed-used, mixed-income developments constructed near the Minnesota Avenue and Benning Road Metro stations that primarily consisted of affordable housing units. Including more market-rate housing in this development would support the new retail development that the community wishes to see, commenters said.

My Proposed Development Scenario Largely Parallels the Community’s Vision

As a resident of the demographically similar inner-Beltway portion of Prince George’s County that borders Ward 7, I concur with many of the Deanwood residents’ views and expressed concerns. Accordingly, my written comments to WMATA propose a joint development scenario for the Deanwood Metro parking lot that largely incorporates those ideas.

Jenkins Row - A Grocery-Anchored Mixed-Use Development
Near Potomac Ave Metro. Image by Google Earth.

Like WMATA and the Ward 7 Economic Development Advisory Council, I believe the Deanwood Metro site can support “medium-density residential/low-density commercial” development. The District of Columbia’s Comprehensive Plan defines “medium-density residential” as “midrise (typically four- to seven-story) apartment development,” and “low-density commercial” as one- to two-story commercial uses.” WMATA’s proposed development scenario falls on the low-end of that scale; mine falls toward the upper end.

My proposal would use MU-6 zoning, a medium/high-density mixed-use zone that focuses on residential development but that also allows for up to 139,392 SF of non-residential development on the Deanwood Metro site. That is more than enough room for the 50,000 SF grocery store (with pharmacy, bakery, deli, ready-to-eat foods, beer/wine, and a coffee shop), 17,500 SF of additional retail uses, and 54,000 SF underground parking garage with 150 spaces that I propose.

With respect to the residential component, I echo the community’s belief that the development should focus on market-rate housing units. Nevertheless, I believe that it is appropriate and consistent with smart growth principles to include some affordable housing units near every transit station. Therefore, my proposal calls for 325 total multifamily units, with 20% of them as affordable units—i.e., 260 market-rate units (284,250 SF) and 65 affordable units (63,750 SF). Even with this number of affordable units, my proposal contains at least 100 more market-rate units than WMATA’s original development concept.

Let WMATA Know What You Think Before July 2

WMATA is accepting public comments on its Deanwood Metro joint development proposal until 9:00 am Monday, July 2, 2018. It is important that the agency hear your views.

You can submit public comments online—either in a text box or there is an option to upload a PDF file—or via mail to the Office of the Secretary, WMATA, 600 5th St NW, Washington, DC 20001. Remember to include the docket number (R18-01) in your correspondence.

Monday, May 14, 2018

Seat Pleasant Plans for a Smart and Excellent Future

The small-yet-spunky city of Seat Pleasant, Maryland, located on the District of Columbia border in central Prince George’s County, touts itself as a “Smart City of Excellence.” In keeping with that moniker, city officials are embarking on a master planning process designed to help determine how and where the city should grow and develop over the next generation.

The city recently hosted an impressive community charrette to give stakeholders an opportunity to weigh in with their views on Seat Pleasant’s future. Approximately 60 people came out to the meeting, held on May 9 at the Seat Pleasant Activity Center. About half of the attendees resided outside of the city limits—which isn’t so surprising given the city’s small population (4,700) and small land area (less than 0.75 square miles). There were a mix of older and younger stakeholders present, and everyone seemed invested and engaged in the process. Roger Weber, a senior urban planner in the Washington, DC, office of Skidmore, Owings & Merrill, facilitated the charrette.

Notably, this master planning process is being commissioned by the Seat Pleasant municipal government and not by the Maryland-National Capital Park and Planning Commission (MNCPPC), the bi-county state planning agency that operates in Prince George’s and Montgomery counties. Unlike in other counties in Maryland, municipalities in these two counties do not possess independent planning and zoning authority, so official community plans must be developed by MNCPPC and approved by the relevant county council. Nevertheless some of these municipalities still choose to develop their own independent advisory plans, so that they may better help to shape the relevant MNCPPC community plan. Such “ground-up” planning is especially helpful for communities like Seat Pleasant, where MNCPPC has not updated the official small area (or “sector”) plan in more than 18 years.

A City of Substantial Resources and Daunting Challenges

Founded near the turn of the 20th century as one of the county’s early streetcar suburbs, Seat Pleasant has an enviable array of physical and natural resources. The whole town is within easy walking or biking distance of two Blue/Silver Line Metrorail stations (Addison Road-Seat Pleasant and Capitol Heights). Most of the city’s residential neighborhoods are laid out in a grid, on quiet tree-lined streets with single-family homes. There is a huge park in the center of town and several nearby indoor recreation centers. Two major state highways—Central Avenue (MD 214) and Martin Luther King Jr. Highway (MD 704)—run through the city, and the city’s main commercial corridors are located next to those two highways.

Residents celebrate at Seat Pleasant's Goodwin Park. Image by Author.

Arguably, the city’s most valuable natural resource is its acres upon acres of vacant or underutilized land within proximity of Metro and along the two state highways. This land is ripe for redevelopment and, if properly honed and leveraged, could be the key to the city’s economic prosperity in the years ahead.

At the same time, Seat Pleasant has a number of challenges. It is currently one of the most racially homogeneous and socioeconomically distressed communities in Prince George’s County and the Washington Metropolitan Area. Its population is 86% African American and 9% White, with 12% of the total population identifying as Hispanic. According to the Census Bureau’s 2012-2016 American Community Survey, the city’s median household income ($51,930) is only 68% of the county’s ($75,925) and 55% of the metropolitan area’s ($93,804). Similarly, the city’s poverty rate (15.7%) is 61.9% higher than the county’s rate (9.7%) and 86.9% higher than the metropolitan area’s (8.4%). Median home values in Seat Pleasant ($175,000) are 67% of the county’s ($261,400) and 45% of the metropolitan area’s ($387,400). Finally, the city’s educational attainment rate, as measured by the percentage of the population who have bachelor’s degrees or higher (15.2%), is only 48% of the county’s (31.5%) and 31% of the metropolitan area’s (49.4%).

The age and diversity of Seat Pleasant’s housing stock is also at somewhat of a disadvantage relative to Prince George’s County and the Washington metropolitan area. Of the 1,814 housing units in the city, only 159 (8.7%) have been built since 1980, and virtually none since 2009. Additionally, only 71 units (3.9%) are in large multifamily buildings with more than 10 units, whereas such buildings constitute approximately 25% of the housing stock in the county and the region.

In his introductory remarks at the charrette, Seat Pleasant’s mayor, Eugene W. Grant, identified a couple of other challenges for his city: a lack of new, modern retail and commercial development and an exodus of existing large merchants. It has been more than 30 years since the opening of the city’s most recent and largest commercial development, the Addison Plaza Shopping Center, located just off of Central Avenue about a quarter-mile from the Addison Road Metro Station. Two years ago, that shopping center lost its major anchor tenant, a Safeway grocery store. Although other retailers eventually filled that space, the lack of a convenient grocery store was a huge loss to the Seat Pleasant and Capitol Heights communities.

Seat Pleasant is not alone in its struggles. Indeed, planners at MNCPPC noted in the 2010 Subregion 4 Master Plan for central inner-Beltway Prince George’s County that current socioeconomic conditions in the area placed it at a tipping point of instability. “Unless the cycle of disinvestment is reversed through an intervention strategy,” the county noted, these communities “will not recover.”

The Goal: Shared Prosperity and Non-Displacement

The current master planning effort in Seat Pleasant is part of the city’s intervention strategy for reversing the cycle of disinvestment within its borders. Through the plan, the city hopes to define more clearly where and how it would like the city to grow and redevelop. Presumably, this will also help guide city decisionmaking as to where to direct future municipal infrastructure investments.

Mayor Eugene W. Grant and planner Roger Weber. Image by Author.
Mayor Grant is steadfast in his determination that any future economic prosperity in Seat Pleasant must inure to the benefit of current city residents first and foremost. He noted in his introductory remarks at the charrette that he welcomes the day when a new and demographically diverse group of residents come to call Seat Pleasant home; however, he doesn’t want their arrival to come at the expense of the city’s current inhabitants. In particular, the mayor noted with pride that many of the city’s senior citizens have invested in and contributed to the city for more than 30 years, and that these longtime residents deserve to see a return on their investment.

To be sure, the influx of more affluent residents (of whatever race) and the resulting increases in property values—what people commonly call “gentrification”—can sometimes be a challenge for communities like Seat Pleasant. The fear is that the increase in wealth will drive existing residents out. But the research shows that such fears are typically overblown. The greater risk for communities like Seat Pleasant, as MNCPPC and other researchers have noted, is that the cycle of disinvestment in these communities will continue, and that these communities will eventually wither into intractable concentrations of poverty.

As the comments in the charrette revealed, current Seat Pleasant residents want what most communities want: well-stocked grocery stores, sit-down restaurants, and other crucial neighborhood-serving retail; safe, well-lit, walkable, and bikeable communities; a variety of housing and employment options; and recreational and cultural amenities. To get these things, the city will need to significantly increase its population, provide more modern multifamily housing close to transit, and improve its overall economic demographic profile. There is no reason the city cannot accomplish these things in a manner that doesn’t displace current residents. Indeed, those current residents will be able to share in the city’s new prosperity—and deservedly so.

In a future post, I will explore one particular opportunity site near the Addison Road Metro Station that could be a strong catalyst for Seat Pleasant’s future economic development. In the meantime, the city’s planning contractors will continue to hammer out a broader vision for Seat Pleasant’s future. Mayor Grant stated that he would like the planners to present a full report to him and the city council no later than July.

What are some of your ideas for how Seat Pleasant can best grow and develop in the next several years? What do you think are the best redevelopment opportunity sites in the city? Let us know in the comments!

This post has been updated to fix typos and correct Census data calculations.