11-20-2002 Regular Meeting and Public Hearing

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Staff Report March 27, 2003 Variance Request #V03-001 Requested by: Mr. William Helm representing First National Bank of Bellaire. Requested for: Waiver from the City's $1 million bond requirement and provide a Reserve Fund in lieu of the requirement. Location: Luella at Fairmont Parkway — 22.355 acres in the William M. Jones Survey, Abstract No. 402, Harris County Zoning: 20.355 acres High Density Residential 3 (R-3) Background: The project is proposed on approximately 20 acres zoned R 3. The boundaries of the property are Luella on the west, Venture Lane on the north, Willow Spring Gully on the east, and on Fairmont Parkway on the south. (See Exhibit A.) Approximately 180 units are proposed giving the project a density of nine (9) units per acre. On June 2002, Mr. Helm inquired about the development and zoning regulations for multi -family units. Staff informed Mr. Helm that City Council placed a moratorium on the construction of mid to high density residential development to create new regulations. On October 14, 2002, Council adopted Ordinance 1501-XX. Among the new regulations established was a 180-unit maximum on all multi -family complexes. On October 18, 2002, Mr. Helm presented Staff with a plan that exceeded the 180-unit limit. On November 20, 2002, Mr. Helm asked the Board for a variance. His request was denied. During this time, Mr. Helm also stated that he could not secure a $1 million bond and/or irrevocable letter of credit as required for new multi -family developments over 100 units. (See requirements in Exhibit E.) On March 6, 2003, the applicant filed a request for variance. Citing Section 106-192 B (2) b, he is seeking relief from the requirements found in Section 106-150. As an attachment to his application, Mr. Helm notes several major hardships that affect the property. First, "no bonding company, insurance company or bank will issue such a bond." In lieu of the bond/irrevocable letter of credit, the applicant indicates that the stipulations found in a HUD 221(d) 4 loan require that the borrower maintain a Reserve Replacement account for the loan's life. The applicant will be required annual deposits of $45, 000 (approximately $250 per unit). After 40 years, the deposits will equal $1.8 million. Analysis: Section 106-192 B (1), in the Code of Ordinances, defines a variance as a deviation from the literal provisions of the chapter which is granted by the Board when strict conformity to the chapter would cause an unnecessary hardship because of the circumstances unique to the property on which the variance is granted Except as otherwise prohibited the board is empowered to authorize a variance from a requirement when the board finds that all of the following conditions have been met. :ZM