Association of Bay Area Governments (ABAG) memo

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    FBAl'~AREkBovERN~~~~~~~~~~-~-~~~-~-~-- (-.~.pRepresenting City and County Governments of the San Francisco Bay Area .....

    A B A G

    ~IE:NIOTo: ABAGExecutive BoardSubmitted by: Ken Kirkey, ABAG Planning DirectorSubject: Process for formalizing Growth Opportunity Areas submitted via the Initial Vision ScenarioDate: August 30, 2011Executive SummaryGrowth Opportunity Areas were submitted by local government staff for consideration in the Initial Vision Scenario. Asregional agencies move toward selecting a Preferred Scenario for inclusion in the Sustainable Communities Strategy anddevelop financial incentives for Priority Development Areas through the OneBayArea Grant program, eligible GrowthOpportunity Areas will need to be formalized as Priority Development Areas. Priority Development Areas have submittedfonnal applications with supporting local council resolutions. Growth Opportunity Areas will need to proceed through thesame review and local support to be considered as Priority Development Areas.Recommended ActionStaff recommends the following:

    Approve the timeline and process for transitioning eligible Growth Opportunity Areas to Priority DevelopmentAreas.

    Add the following place types to the menu of place types in the Station Area Planning manual, which jurisdictionsself select from as part of their PDA application: Employment Center, Rural Town Center, and Rural Mixed UseCorridor.

    Approve the criteria for these additional place types Add to the PDA criteria that the minimum housing density be in line with the selected place type from the Station

    Area Planning Manual.Next Steps

    Staff presents process for formalizing Growth Opportunity Areas to ABAG Regional Planning Committee: October5,2011

    Staff presents process for formalizing Growth Opportunity Areas to MTC Planning Committee with the ABAGAdministrative Committee: October 14, 2011

    Jurisdictions submit completed PDA applications by October 31,2011 Staff review of applications received: November 2011 Deadline for submitting local resolutions in support ofPDA Application: November 29,2011 Staff PDA recommendations presented to ABAG Regional Planning Committee with Planned/Potential status:

    December 7,2011 Staff PDA recommendations presented to ABAG Executive Board for final adoption with Planned/Potential status:January 19,2011

    Attachments:Staff Report

    Item

    Mailing Address: P.O. Box 2050 Oakland,Location: Joseph P. Bort MetroCenter

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    ASSOCIA TION OF BAY AREA GOVERNMENTS ()A B A G

    MEMO

    Subject:

    August 30, 20 IIABAG Executive BoardKen Kirkey, ABAG Planning DirectorProcess for formalizing Growth Opportunity Areas submitted via the Initial VisionScenario

    Date:To:From:

    Background on Growth Opportunity AreasThe Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission(MTC) approach the implementation of the FOCUS Priority Development Areas (PDAs) as a keyconsideration for the development and adoption of the Sustainable Communities Strategy (SCS) underSB375. The PDAs comprise a network of neighborhoods that are expected to accommodate the majorityof the region's population and employment growth.The SCS Initial Vision Scenario, released in March 2011, was designed around the places identified forgrowth by local jurisdictions. These places included the PDAs, already designated through the FOCUSprogram. They also included additional Growth Opportunity Areas (GOAs), some similarto PDAs andothers with different characteristics for growth and sustainability. Based on local visions, plans andgrowth estimates, regional agencies distributed housing growth across the region, focusing on the PDAsand the newly identified Growth Opportunity Areas.With the identification of new areas for growth in the Initial Vision Scenario, 70 jurisdictions within theBay Area now have at least one PDA or GOA. The PDAs and GOAs combined currently contain 22% ofhouseholds. Based on the Initial Vision Scenario housing distribution, by 2035 these areas could containabout 34% of households, taking on approximately 72% of new household growth.ABAG and MTC have proposed a regional funding program, the OneBayArea Grant, that will support theimplementation ofthe SCS at the local level. This proposal pulls together different transportation fundingstreams to support sustainable growth as envisioned in the SCS. As proposed, $211 million will bedistributed among counties based on population, the Regional Housing Needs Allocation (RHNA), andactual housing production. Congestion management agencies would be able to spend seventy-percent ofthis funding stream on projects that support the PDAs, and thirty-percent ofthis funding could be spentanywhere in the county.The PDAs have undergone a formal process of designation, requiring city council resolutions. TheGOAs, however, have only been proposed by city staff at this point. Given the possibility that regionalfunding will be tied more closely to the scale and quality of sustainable growth within local jurisdictions,it is important to formalize the Growth Opportunity Areas identified in the Initial Vision Scenario, asthese areas will playa valuable role in the SCS. This memo outlines a process for Growth OpportunityAreas to beeome Priority Development Areas and recommends an expanded PDA criteria to include ruralareas and employment centers and to ensure new PDAs are planning for appropriate housing densities.Process for Growth Opportunity Areas to become Priority Development AreasStaff has conducted a preliminary assessment of Growth Opportunity Areas submitted for inclusion in theInitial Vision Scenario to highlight that the majority of these areas seem eligible to become PriorityDevelopment Areas. However, given the potential role ofPDAs in RHNA and the OneBayArea Grant,GOAs need to provide more information for proper review and show formal commitment to being

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    designated as PDAs. Jurisdictions who want their GOAs to be considered in the SustainableCommunities Strategy and, thus, One8ayArea Grant will need to complete a PDA application to providestaff with the necessary information to evaluate the area's eligibility and status as Planned or PotentialPDAs. A resolution in support of the jurisdiction's appl ication will also need to be submitted. GrowthOpportunity Areas that do not meet PDA criteria or for which a complete PDA application is notreceived will not be considered for PDA adoption and will not be eligible for OneBayArea Grantfunding. Only adopted PDAs will be eligible for these funds.Preliminary Analysis of Growth Opportunity AreasJurisdictions submitted GOAs for consideration in the Initial Vision Scenario. Staff has reviewed theGOA information submitted and arrived at the following summary. As is being recommended in thisreport, jurisdictions who submitted GOAs will need to submit a full PDA application to enable acomprehensive review for PDA eligibility prior to making final recommendations for certain GOAs tobecome PDAs.Approximately 52 newly identified GOAs meet the criteria for PDA designation, namely that they areinfill areas within existing urbanized areas and are served by high-frequency transit. These 52 new areascould accommodate up to 88,000 new households by 2035. As such, these GOAs are good candidates forPDA designation.Six GOAs (in addition to the 52 GOAs described above) are identified as "Rural Town Centers" or "RuralMixed-Use Corridors". While these areas could accommodate more than 1,900 new households by 2035,the primary role of these rural areas in the SCS would be to improve connectivity and provision ofservices for rural residents, rather than significant housing production. Rural Town Center and RuralMixed-Used Corridor Place Types would need to be added as an option to the menu of Place Typesidentified in the MTC Station Area Planning manual, which jurisdictions currently use to identify anappropriate place type for their PDA.Nine additional GOAs are identified as "Employment Centers"; these areas could accommodate at least7,000 new jobs. As with the rural GOAs, the primary role of these areas is not housing production, butrather a reduction in vehicle-miles-traveled through improvements intransit to and provision of serviceswithin these existing and future job centers. An Employment Center Place Type would need to be addedas an option to the existing Place Types identified in the MTC Station Area Planning manual, whichjurisdictions currently use to identify an appropriate place type for their PDA.Another fourteen GOAs have been identified that currently do not meet all of the PDA criteria. Some ofthese areas are very small (less than 20 acres in size); some are envisioned for low-density developmentor do not have sufficient transit service. However, these GOAs could accommodate a significant numberof new housing units; the Initial Vision Scenario envisions approximately 28,000 new households in theseGOAs by 2035. Staffwill need to make a formal determination on these areas based on additionalinformation provided by the jurisdictions in the completed FDA applications to be submitted. PDAs willbe encouraged to submit areas that are at least 100 acres in size or to explain why that is not feasible.Additionally, jurisdictions will need to demonstrate that new housing being planned for in the area willmeet the minimum place type guidelines.Recommendations1) Staff recommends that the place type menu available to PDAs be made more inclusive of employment-focused and rural areas to advance sustainability concepts not previously covered by the PDA criteria.The Employment Center, Rural Town Center, and Rural Mixed Use Corridor Place Types would beadded to the seven Place Types identified in MTC's Station Area Planning Manual that are currentlybeing used to describe the existing PDAs. As funding may flow to these areas that are not specificallyhousing-focused, specific criteria for these areas need to be implemented to ensure that these areas further

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    the goals of the SCS, either through a reduction in YMT via improvements in connectivity and services orthrough supporting the economic vitality of the region.2a) Specifically, staff suggest the following criteria be required for PDA designation of RuralCenters/Corridors:

    The areas are existing town centers (not co-terminus with other urban communities) and/or are aalong a rural corridor

    The areas encompass or are being planned to include a mix of services to reduce vehicle milestraveled and/or are being planned for more housing with a mix of supportive services The areas are being planned for more connectivity (multi-modal improvements, transit for

    employees and residents, etc.) Areas have an urban growth boundary or other zoning policy in place, such as an urban service

    area, to limit sprawling development2b) Staff suggest the following criteria be required for PDA designation of Employment Centers:

    The areas currently contain a certain threshold or density of jobs or have the plan capacity for acertain threshold of job growth (thresholds to be determined)

    The areas are currently served by transit or are being planned for transit service (fixed railexisting or planned, demonstrated high frequency bus (20 min headways during peak weekdaycommute hours), or shuttle service to fixed rail

    The areas are planned for a greater intensity and mix of uses (increased floor area ratios, reducedparking requirements, required Transportation Demand Management)

    The jurisdiction is providing sufficient housing near the employment center to merit resourcessupporting an exclusively employment development area (sufficient level of housing to bedetermined possibly related to jobs per household or employed resident from General Plans)

    3) Additionally, staff recommends that the definition of the PDA criteria for the area is planned or isplanning for more housing, be clarified to state the following (addition in bold):Housing means the area has plans for a significant increase in housing units to a minimum density ofthe selected place type from the Station Area Planning Manual, including affordable units, which canalso be a part of a mixed use development that provides other daily services, maximizes alternative modesof travel, and makes appropriate land use connections.This addition wiII ensure that areas proposed as PDAs incorporate housing at an appropriate level for theirplace type.4) Staff recommends the following process and timeline for transitioning eligible Growth OpportunityAreas to Priority Development Areas:

    Milestone Target DateStaff presents process for formalizing GOAs October 5, 2011to ABAG Regional Planning CommitteeStaff presents process for formalizing GOAs October 14, 201 Ito MTC Planning Committee with the ABAGAdm inistrative CommitteeJurisdictions submit completed PDA October 31,2011applicationsStaff review of applications received November 2011Deadline for submitting local resolutions in November 29,2011support of PDA Application

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    Staff PDA recommendations presented to December 7,2011ABAG Regional Planning Committee withPlanned/Potential statusStaff PDA recommendations presented to January 19,2011ABAG Executive Board for final adoptionwith PlannedlPotential status

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