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HomeMy WebLinkAbout03-27-2003 Regular Meeting and Public Hearing of the La Porte Zoning Board of AdjustmentMinutes of the Meeting 0 • ZONING BOARD OF ADJUSTMENT MINUTES OF MARCH 27, 2003 Members Present: Chairperson Sidney Grant, Ruben Salinas, Rod Rothermel, Bob Capen, Alternate No.1 Charles Schoppe, Alternate No. 2 George Maltsberger Members Absent: Willie Walker City Staff Present: Director of Planning Doug Kneupper, Assistant City Attorney John Armstrong, and Planning Secretary Peggy Lee I. CALL TO ORDER. Meeting called to order by Chairperson Grant at 6:00 P.M. II. APPROVE MINUTES OF THE NOVEMBER 20, 2002 MEETING. Minutes were approved as presented. III. CONSIDER VARIANCE #V03-001 TO SET ASIDE THE CITY'S BOND AND INSURANCE REQUIREMENTS PERTAINING TO MULTI -FAMILY DEVELOPMENT PER -SECTION 106-150 OF THE CODE OF ORDINANCES. The City received a letter from William Helm requesting this item be rescheduled for the Board's next meeting, to be held Thursday, April 24, 2003. Motion by Bob Capen to reschedule Variance Request #V03-001 for April 24, 2003. Second by Ruben Salinas. The motion carried. Ayes: Salinas, Rothermel, Capen, Schoppe, Maltsberger, and Grant Nays: None Abstain: None A. PROPONENTS B. OPPONENTS IV. CONSIDER APPEAL OF THE ENFORCEMENT OFFICER'S DECISION #A03-001 WHICH SEEKS TO REVERSE THE ENFORCEMENT OFFICER'S DECISION TO APPLY SECTION 106- 26E TO THE EXPANSION OF PRE-EXISTING NON -CONFORMING FACILITIES LOCATED AT 216 S.16'x STREET. Director of Planning Doug Kneupper presented staffs report and answered questions from the Board. The applicant is appealing the Enforcement Officer's decision to apply Code of Ordinances Sec 106-262 Nonconforming Structures to a proposed development. A. PROPONENTS Chairperson Grant swore in Alton Ogden, Jr., who resides in Natchez Mississippi. Mr. Ogden, owner of Oakland Land and Development Company, owns the property in question in the 200 Block of S. 16' Street. - He presented his reasons for wanting the Zoning Board of Adjustment • Minutes of Meeting March 27, 2003 Page 2 Appeal granted and showed the Board photographs relating to the subject. Mr. Ogden answered questions from the Board and Staff. Chairperson Grant swore in Ralph Hampton, who is Mr. Ogden's project manager. Mr. Hampton presented his interpretation of Sections 106-261 and 106-262 of the Code of Ordinances as related to the subject and answered questions from the Board and Staff. Chairperson Grant swore in Al Ward. Mr. Ward addressed several issues noted in Staffs Report and answered questions from the Board and Staff. B. OPPONENTS No opposition was presented. Chairperson Grant swore in Assistant City Manager John Joerns. Mr. Joerns spoke of his participation in the matter and attempted to clear up some confusion by answering questions from the Board. Chairperson Grant acknowledged the Board's receipt of copies of public notice responses, all favorable. Chairperson Grant swore in Mary McLane. Neither proponent nor opponent, Ms. McLane, who resides across the street from the subject property, feels all nonconformities should be afforded the same latitude. Motion by Rod Rothermel to deny Appeal of the Enforcement Officer's Decision ,#A03-001. Second by Ruben Salinas. The motion carried. Ayes: Salinas, Rothermel, Capen, Schoppe, Maltsberger, and Grant Nays: None Abstain: None V. STAFF REPORTS No staff reports. vi. ADJOURN Chairperson Grant adjourned the meeting at 8:00 PM. Submitted by, Peggy Planning Secretary Approved on this � L day of , 2003. 4- Sidney t Chairperson, Zoning Board of Adjustment W03-001 VARIANCE EXHIBITS A. Staff report B. Location map C. Graphic rendering D. Application E. Documentation Staff Report April 24, 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 Zonin : 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. Zoning Board of Adjustment April 24, 2003 #V 03-001 Page 2 ❖ That the granting of the variance will not be contrary to the best public interest. ❖ That literal enforcement of the chapter will result in unnecessary hardship because of exceptional narrowness, shallowness, shape, topography or other extraordinary or exceptional physical situation unique to the specific piece of property in question. "Unnecessary hardship" shall mean physical hardship relating to the property itself as distinguished from a hardship relating to convenience, financial considerations or caprice, and the hardship must not result from the applicant or property owner's own actions, and ❖ That by granting the variance, the spirit of the chapter will be observed The Board must decide if the applicant's variance request to Section 106-150 is reasonable. The Board is charged with deciding whether all of the above conditions were met. To determine if granting the applicant's request would be contrary to the general public, Staff contemplated accepting the Reserve Fund in lieu of the bond/letter of credit. Over the life of the loan, the fund would contain over $1.8 million for maintenance. Although the City could not access the fund as stated in Section 106-150, annual HUD inspections would dictate that the property is maintained to HUD's standards. If the inspection resulted in a score below 70, the applicant would create a maintenance plan and use monies from the Reserve Fund to ensure that the property is brought up to standards. The lending institution assures that HUD's standards are not contrary to the general public. In addition, the applicant may, at any time, obtain funds to use for normal maintenance. When looking at the next test, Staff determined that granting the variance would still observe the spirit of the law. The spirit of the law is to ensure that property is properly maintained and does not fall into disarray. To meet the ordinance, Mr. Helm attempted to secure bond insurance but was unsuccessful. (See Exhibit D.) As an alternative, he offered the Reserve Fund. Staff believes the Reserve Fund partially meets the spirit of the ordinance; however, issues arise after the 40-year loan ends. At that time, the Reserve Fund is returned to the applicant; as a result, no mechanism is in place to ensure that the property will continue to be maintained to City standards. The final test involves unnecessary hardship. Staff believes that Mr. Helm's request does not meet the physical hardship test, as there is nothing unique about his property. However, Staff believes that a hardship does exist. When the bonding requirement was established, it was believed that securing the bond/letter of credit was possible. The City of Pasadena's ordinance contains a similar bonding requirement. Pasadena's staff indicated that many developers encounter problems trying to secure a bond. To- • • J Zoning Board of Adjustment April 24, 2003 #V 03-001 Page 3 provide relief, their applicants are requesting a variance and providing a Reserve Fund in lieu of the bond. As the Planning and Zoning Commission reviews the zoning and development ordinances, Staff will encourage the Commission to explore amendments to the bonding requirements. In the interim, Staff recommends that the Board consider adding one or more of the following as a condition(s) to the variance: Lower the dollar value of the bonding requirement; and/or Add a covenant that. continues after the 40-year mortgage and Reserve Fund ends. Upon receipt of the Reserve Funds, the applicant must establish a new maintenance fund that continues with annual deposits for the life of the project. Conclusion: The applicant offers an alternative to the bond/letter of credit requirement that is not contrary to the general public and that meets the spirit of the ordinance. While he has not demonstrated a "physical hardship", the City's bonding requirement does create an "unnecessary hardship." Staff recommends that the Board grant the applicant's variance request but only if one or all of the above conditions are added. ADDCRls: Asper Section 106-196 of the Code of Ordinances of the City of La Porte: Any person or persons, jointly or severally, aggrieved by any decision of the Board of Adjustment, or any kvgmyer, or any officer, department, board or bureau of the city may present to a court of record a petition for a writ of certiorari, as provided by V.T.C.A., Local Government Code Section 211.011, duly verified, setting forth that such decision is illegal, in whole or in part, specifidng the grounds of the illegality. 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[ a r. �r �7�t,,..3` i' ;a�� �'�.' •f' r :i�ti t �,. 91 4,� ��`1•+'!'j� � ti j s • ('` - '-�y� �.. .^ - '}\ ` .1�1 � .�C.� �, a•�r��i or,t,p dTdJi1�1'd�W.e�t !, � L ',%' r~ } ' -¢•vxYJ�.;J� l'. y� ppr I i «:I.{' �• f-\ ,r - ai J �1 Y [ a «J "7 VARIANCE �y ,� ', �- c ;u' f� ?-.r c! �''�+•(iN .,.�`1TiW���e. s•;.:.� ,dr�"id-fi!.1 � r �` � c ( ;S F", l • 00 i 1 w. tTVV} ",ateZia LZ �A�rL n DOFF Arc Ic lt— Planning I n[ o - Design 6-464 500 H--., -- 77057 ARCHITECTS Mar 05 03 12:01p Mar 04 03 04:54p • p.2 p.2 W-0 3-2003 MGIi 110:3Z5 AM FAX HO. - P. 02 CITY' OF LA FORTE. ZONING BOARD OF ADJUSTMENT VARIANCE REQUEST OF iCE USE ONLY! Vow $IQQ.QQ Date Received: Receipt No.: ND-t ' This Fee is Non -Refundable Regardless of the Board's Decision. Applicant: _First National Bank of Bellaire 7 . Name 5501 $issonnet - r Bellaie TX Address 77402 I am the owner of the herein described property. to act on my behalf In this matter. 713-666-2�1.1 Phone I have authorized wi i i i aro T. Helm Owner': First National Nank of Bellaire Name -Coe Ahcn p Address Phone X anj requesting a variance to Sect.106-150 of the City zoning Ordinance No. 1501. I Wn requesting this variance for property located -at I.uette &Fairmont-, Parkway Street Address Legal Description ( Site plan () Minot Development Site Plan () Major Development Site flan (3 General Plan A Site Plan of the property is attached. Also, I have listed the information rrquested below on the following pages of this form. a) All facts collceraing tbe.matter•that has led up to this request. b) The type of relier I am seeking (setbacks, lot coTerage, etc.). c) The grounds upon which I am malting this request. * If applicant is NOT the owner, he must provide Authorization Wact on the Owner's behalf. '00 Date _— An7nlie�nt� iow.ie.ws Office Use Only Site Plan and Authorization U applicable) attached? Yes () No { ) Date transudued to the Board of Adjustments: Meeting. Date: _ _ -Applicant Notified of Date: Notice to surrounding property owners - Date: Board's Decision: Approved () Denied ( ) 0 Mar 05 03 12:02p Mar 04 03 04:54p • p.3 p.3 lil y03-2003 HPI 110:36 9jl a A variance b a "deviution from the literal provisions of the Zoning Ordinance." The City's Board of Adjustments may NOT grant a variance ' that does not meet all of the following conditions: 1.) 7*110 variance mud not be contrary to the public interest. 2) Literal enforcement of the Zoning Ordinance must result in a hardship. This hardship must be unique to the property in question. Property that is undevelopable due to its unusual shape, narrowness, shallowness, or topography constitutes the primary example of hardship. Hardships that are financial in nature or due to the owner's actions cannot be granted. 3) Crsnting tho variance roust not violate the spirit of the Zoning Ordinance. 4) No variance that allows a use that is prohibited within the Use zone in question may be granted. For cNample, a variance allowing a commercial is not allowable. use in a residential zone Please remomber it is the Applicant's responsibility co prove that a variance will meet the above conditions. If there is not adequate room on the remainder of this force to list all pertinent information, plcasr feel free to attach an additional letter or any information and exhibits You feael the )hoard should consider. FACTS RELEVANT TO THIS MATTER: Undue hardship will result from requiring strict: compliance of. this ordnance. We plan to apply for a.F1UD 221(d) 4 loan through Davis Penn Mortgage Company for the planned 180 unit apartment -complex to bE:i)uilt on property at the corner of Fairmont and Luette. The requirements of the HUD 2.21(d) 4 loan will require that the owner mako a monthly payfaent to a reserve for replacement account which will be held by the Lender. The average amount: for a monthly deposit is Y250:00 pwr• unit per year. Strict annual proper y'inspec ions in3ure tl,al.-LIee project will be properly maintained ovFr the 40 term ' of the loan. See attached letter from Davis Penn Mort-.g,Ue Company. Mar 05 03 12:02p p.4 Mar 04 03 04:55p • p.4 MAR-03-2033 MOO 10:1-8 AM FPX MI . 3 TYPE OF RELIEF BELNG SOUGHT.- _Wo. are desirous of receiving a variance to SectJOG=150af the La Porte ordnance regiring such a bopd for all new con6txuction of apaiLment5. The specific request is for permission to be relieved hf the requirements of Sect.106-150 THE GROUNDS FOR THE REQUEST: There is no bonding company, insurance company,Or bank. who will is$UG Such a bond. Town and Country Insurance Agency whu have -researched the Intire market and have reported that no bond of this type is available. , See -attached letter: Mar 05 03 12:02p Mar 04 03 04:55p 93,'04i _ 0113 99: 39 28 -49! -3 -.50 0 D4VI5 Ff -W f4[QTG_^GC- RZE 02/ 02 March 3, 20W DAVIS-PENN MORTGAGE CO. Mr. Bill Helm The, Helm Companies 'S25 Soup Shore Blvd., Suite 407 l.e;)g11e City, Texas 77573 Rc:: La Porte Apartments HUD 221(d)4New Construction Dear Bill, We bave completed the prelinvnary analysis for the above -referenced development and have tteu:nuined that it would be an excellent candidate for a loan under the HUD 221(d)4 Insurance ptYaLrram. Davis -Penn Mortgage Co. will be the Lender issuing GNMA Securities backed by the FHA/IJUD Insmance. The 221(d)4 program is a 40-year terrrl/amortization, fully-assucrnable. construction to pemaanent and non -recourse loan. The HUD Insurance Commitment will require that the Owner make a monthly Payment to a reserve for replacement account which will be held by the Lender. The average amount for a monthly deposit is $250 per unit per year. Strict :xtulual property inspections along with, the reserve for replacement escrow ensure that the project will be properly maRktained over the life of the loan. If you should have any questions or should geed additional ittfonnation, please do not hesirate to contact our office. Thank you. C�,rdially, Carl W. Ogden Vice President C%VO/jrd i:rlelmWe MSAI A FULL SERYtCE MORTGAGE COMPANY 12621 FEAT}I WOOD-SUITZI"-NOusmm.iFXws:w3a . (M1)681.Zd6 • rAX.(261)QI.24is Mar 05 03 12:02p p.6 Mar 04 03 04:55p • P.6 Jin-20-03 12:02 From -TOWN 6 COUNTRY INSURANCE 113dtid26ld T-d4Z P.fll/Cf F-908 TO N & COUNTRY . w: 4 p w.( r + r. i A r r November it, 2002 William L. Helm Horizon Residential. Inc. 2525 South Shore Blvd. Suite 407 League City, TX 77573 RS Bonding RequireinenuUCity of La Porte Via Fax 231-334-2066 Dear Bill. t have been in corttact with all of our bonding carriers in regard to this requirement from the City of LaPorte. The carriers consider this a form of a subdivision maintenance bond mad have no interest in underwriting this bond. They declined due to size of the bond. team of the bond and type of bond among many other reasons. We have access to every major bonding carrier but it seems that no one has any interest in pursuing this particular request nor had they ever seen a similar situation where this was required before. All of the carriers contacted stated that no bond of this type would be available at any cost with ory carrier unfortunately. 1 apologize that we were unable to help in this situation but if l can be of further assistance in another tnew r please let me know. Sincerely, c ophar lr. nr., CrCu CtC `057, Kmy PIQ.woy. Swig 14.0. Pjawq.w,. Tomm 77024 113.401.MV prone 711.4o4. j674 iox www.low-•:.ndc:onnleynl$.CWr• Mar 05 03 12:03p r FIRST NATIONAL BANK OF BELLAIRE Craig S. Wooten President March 4, 2003 William L. Helm Horizon Residential, Inc. 2525 South Shore Blvd. Suite 407 League City, Texas 77573 Dear Mr. Helm, 5501 Bissonnet Box 40 Bellaire, Texas 77402 tel 713-666-2511 fax 713-666-7199 www.fnbbellaire.corn p-7 Previously I have tried to assist you in obtaining a maintenance insurance bond as required by La Porte's new Planning & Zoning ordinances. Through my contact with Travelers Insurance, I was told that they were not interested in bidding on such an open- ended obligation. Alternatively you have requested information on our ability to issue a letter of credit in lieu of a long- term maintenance bond. Based on my 30 years experience and further discussion with our major correspondent bank, we have not heard of a letter of credit issued in this manner. It would be extremely difficult for a bank to underwrite a letter of credit for such an extended period of time and for the purpose intended. Most letters of credit are for short duration of 1 to 3 years and for specific performances. The type that is being proposed is for replacement and repair that could be 15 or 20 years away and for problems that may or may not exist. A bank would have a difficult time in determining a borrower's credit worthiness this far in the future. It is also nonsensical to expect a developer to pledge cash or other collateral to secure a letter of credit for this length of time. The security would have to be given at the time the letter of credit was issued when no maintenance would be needed. A requirement of this nature would increase the cost substantially and make the project financially non feasible. Based on the requirements of the letter of credit and it's length, neither our bank or its correspondent bank would have an interest in issuing a letter of credit as proposed by the City of LaPorte. Yours truly, der' g S. Wooten. • • Documentation Itt, structure not in conformance with this chapter or any other ordinance of the city in accordance with state law. Sec. 106-146. Zoning permit for nonconforming uses, lots and structures A zoning permit shall not be required but may be applied for and shall be issued for nonconforming uses, lots, or structures. However, in the event of any subsequent application or building permit or of any change in occupancy the enforcing officer may require other evidence that the nonconforming use, lot, or structure legally existed prior to the effective date such property became subject to the terms of these regulations. Sec. 106-147. Certificate of existing conforming uses. A zoning permit shall not be required but may be applied for and shall be issued for any existing use of land or structure which conforms to the requirements of these regulations. Sec. 106-148. Utility connections; prior zoning permit approval required. For all new construction and the use of all existing and new structures, no public utilities under the city's direction and control shall be connected to such building or structure until the zoning permit approval required by this chapter has been granted. Sec. 106-149. Application fees. All written requests shall be accompanied by a filing fee sufficient to offset all costs of publication and notice required by statute or ordinance but in no event less than the amount established by the city council and listed in appendix A. 0