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HomeMy Public PortalAboutChapter 22 TITLE Introduction At the beginning of the planning process, the Project Team prepared an Existing Conditions Summary (see Attachment B) that included a detailed inventory of the social, physical and economic conditions present in the Gateway Area. This inventory and analysis was an important starting point for understanding the unique issues and opportunities facing the Study Area, including current market conditions, land use and urban design issues and assets, mobility assessments, sustainability factors, branding and identity considerations, and regulatory conditions. This information was used to inform the strategies and actions that will foster future changes and improvements in the neighborhood. The following is a summary of the key findings and opportunities identified in the summary, broken down by the topics listed to the left of this page. In this chapter Introduction Community History and Context Existing Uses Existing Zoning and Development Standards Building Form Streetscape Character Economic Conditions Development Prototypes and Financial Feasibility Analysis Moving Forward EXISTING CONTEXT TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 11 2: EXISTING CONTEXT Community History and Context Originally named Coburn Station, Truckee grew in the 1860s as a key railroad yard and station associated with the Transcontinental Railroad. Donner Pass Road was one of the first Sierra Nevada crossings and has a rich history as part of the original Lincoln Highway, one of the earliest transcontinental highway routes in the United States. The creation of Interstate 80 in the early 1960s bifurcated Truckee, while also allowing Donner Pass Road to become effectively a “main street” for the town. Donner Pass Road remains not only the main east-west roadway through Truckee but also a popular secondary route over Donner Pass. Truckee’s location in the Sierra Nevada, proximity to Lake Tahoe and Reno, access to world-class skiing and outdoor recreation, and location along Interstate 80 makes it an attractive year-round tourist destination. Truckee’s extensive recreational resources and outdoor lifestyle are further complemented by the town’s easy pace of life, historic downtown, and a variety of entertainment, dining, and cultural establishments. Combined, these locational attributes make Truckee a highly-desirable area for residents, businesses, and visitors. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY12 2: EXISTING CONTEXT Existing Uses The Gateway Area boasts a wide range of existing buildings and uses. Development in this neighborhood has historically been focused on auto- centric retail and commercial uses dating back to its days as the historic Lincoln Highway. These more intense uses located along Donner Pass Road are supported by older, well-established residential neighborhoods on the north and south sides. The following is a summary of the existing land uses present in the Gateway Area to provide context on the diverse range of uses in the neighborhood. This is followed by a summary of the Town’s current zoning designations and development standards for existing and new development projects. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 13 2: EXISTING CONTEXT Residential Uses The Gateway Area includes single-family residential neighborhoods between Tahoe Forest Hospital and Highway 89 South. There are several other areas with multi-family housing located along Donner Pass Road. This includes a mobile home park that provides a source of affordable housing within the Study Area. These residential uses account for 10 percent (22.1 acres) of the land in the area. Public Education Uses The Tahoe Truckee Unified School District encompasses a large percentage of land within the Gateway Area. This property is home to the School District offices, Truckee Elementary School, Truckee High School, Sierra Continuation High School, and Sierra Expeditionary Learning School (a K-8 independent charter school). The Truckee High School site includes sports fields and other educational and recreational resources that serve the local community, including a children’s museum and activity center. Public schools and education uses account for 26 percent (57.9 acres) of the land in the area. Commercial and Office Uses The Gateway Area contains a range of commercial uses, including retail, services, and restaurants. These businesses form the economic base for the Gateway Area and support the needs of local and visitor shoppers. Office uses are located on several properties along the corridor. These include general services office buildings, real estate and professional services, non-profits, and other similar uses. There are also a handful of mixed-use commercial buildings with residential units above within the Study Area. Commercial and office uses account for 31 percent (68.5 acres) of the land in the area. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY14 2: EXISTING CONTEXT Medical Uses Tahoe Forest Hospital is a large, regional- serving facility situated in a sprawling complex within the Gateway Area. The hospital provides emergency medical and urgent care services, and a variety of other medical services including a newly- constructed cancer center. The core hospital uses are further supported by a range of medical offices. Public Hospital and associated office uses account for 9 percent (19.3 acres) of the land in the area. Public Parks and Recreational Uses The most prominent open space resource within the Gateway Area is the site of the historic McIver Dairy Farm. While the sloped topography has historically drawn visitors to use the hillside as a sledding slope, the Town recently initiated a wetland restoration and protection project on the western half of the property led by the Truckee Watershed Council. Additionally, the Study Area contains Bill Rose Park, a small 1/4-acre park and playground located behind the hospital. Parks and recreational uses account for 4 percent (9.7 acres) of the land in the area. Street Right-of-Way In addition to the public and private property, the Gateway Area also contains a substantial amount of public right-of- way. This includes public roadways and on-street parking areas. Public street right-of-way accounts for 20 percent (42.5 acres) of the land in the area. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 15 2: EXISTING CONTEXT Zoning and Development Standards Property within the Gateway Area currently fall into one of the following seven zoning districts, as shown below in Table 1 and on Figure 2. Each of these districts establishes development standards that regulate the number of residential units (density) and size (maximum square feet and/or floor area ratio) for existing and new development. The following summarizes the intent and purpose of each zoning district applied in the Gateway Area: »RS – Single Family Residential: Applies to parcels with existing single family residential uses or appropriate for new development. Suffixes attached to this designation denominate the maximum allowed density (units per acre). The “X” suffix establishes that parcels under this zoning may not be further subdivided. »RM – Residential Multi-Family: Applies to parcels suitable for multi- family development and uses. Suffixes attached to this designation denominate the maximum allowed density (units per acre). »CN – Neighborhood Commercial: Accommodates retail sales, office, and service uses to support daily needs of the community. Development standards for this district are aimed to cultivate a pedestrian-oriented environment. The district also allows residential uses in the form of multi- family residential (through a Use Permit) and mixed-use projects at 12 du/ac and 4 du/ac, respectively. »CG – General Commercial: Allows for a range of commercial and retail uses, including restaurants, offices, retail, and other services. CG also supports multi-family residential and mixed- use developments at 12 du/ac and 4 du/ac. Multi-family residential projects are permitted conditionally (through a Use Permit). TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY16 2: EXISTING CONTEXT »PF – Public Facilities: Accommodates public, institutional, and auxiliary uses to serve the town’s needs regarding recreation, health and safety, cultural, education, and government services. »RC – Resource Conservation: Applies to parcels suited for the protection of open space and natural resource/ recreational assets. RC Districts are like OS (Open Space) Districts within the town, with the distinction being that Resource Conservation parcels are intended to have a limited amount of clustered development that is also integrated into the natural environment. This use supports open space, passive recreational uses, and single-family residential (through Conditional and Minor Use permit approval). TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 17 2: EXISTING CONTEXT Table 1: Current Zoning and Development Standards Zoning Designation Density Range*Floor Area Ratio / Site Coverage Setbacks / Stepbacks Height Limits RS-0.50 Single Family Residential 0.5 dwelling units/acre One single-family residence per lot + one secondary dwelling unit Site Coverage: 40% maximum, or 50% maximum on parcels that are less than 10,000 square feet Front: 20 feet Side: 10 feet, or 30 feet for parcels 3 acres in area or more Street Side: 15 feet, or 30 feet for parcels 3 acres in area or more Rear: 20 feet, or 30 feet for parcels 3 acres in area or more 35 feet or 3.5 stories, whichever is less RS-X Single Family Residential One single-family residence per lot + One secondary dwelling unit Site Coverage: 40% maximum, or 50% maximum on parcels that are less than 10,000 square feet RM-15 Residential Multi-Family 15 dwelling units/acre**FAR: not applicable Site Coverage: 50% maximum CN Neighborhood Commercial Multi-Family Residential: 18 dwelling units/acre Mixed-Use: 4 dwelling units/ acre FAR: 0.2 (increased to 0.35 by Review Authority if certain criteria are met) Site Coverage: 70% maximum None, unless required by land use permit conditions of approval related to screening, landscaping, design guidelines, etc. 50 feet or 3.5 stories, whichever is lessCG General Commercial PF Public Facilities Residential Not Permitted Determined through the Land Use Permit Process Front: 20 feet, or 30 feet for parcels 3 acres in area or more Other Setbacks: Determined through Land Use Permit Process 35 feet or 3.5 stories, whichever is less RC Resource Conservation One single-family residence per lot + one secondary dwelling unit (required Conditional and Minor Use Permits) Site Coverage: 20% maximum Minimum Lot Size: 80 acres Front: 30 feet Side: 30 feet, or 10 feet for parcels less than 43 acres Street Side: 30 feet Rear: 30 feet, or 20 feet for parcels less than 43 acres 35 feet or 3.5 stories, whichever is less * May be increased through specific development incentives (e.g., density bonus). ** Units in RM Districts may be counted at different rates depending on the number of bedrooms in each unit (studio= .5 units / 1 bdr= .67 units / 2 bdr = .8 units / 3 bdr+ = 1 unit). TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY18 2: EXISTING CONTEXT Figure 2 Current Zoning Zoning DesignationDensity Range*Floor Area Ratio / Site Coverage Setbacks / StepbacksHeight Limits RS-0.50 Single Family Residential 0.5 dwelling units/acre One single-family residence per lot + one secondary dwelling unit Site Coverage: 40% maximum, or 50% maximum on parcels that are less than 10,000 square feet Front: 20 feet Side: 10 feet, or 30 feet for parcels 3 acres in area or more Street Side: 15 feet, or 30 feet for parcels 3 acres in area or more Rear: 20 feet, or 30 feet for parcels 3 acres in area or more 35 feet or 3.5 stories, whichever is less RS-X Single Family Residential One single-family residence per lot + One secondary dwelling unit Site Coverage: 40% maximum, or 50% maximum on parcels that are less than 10,000 square feet RM-15 Residential Multi-Family15 dwelling units/acre**FAR: not applicable Site Coverage: 50% maximum CN Neighborhood CommercialMulti-Family Residential: 18 dwelling units/acre Mixed-Use: 4 dwelling units/ acre FAR: 0.2 (increased to 0.35 by Review Authority if certain criteria are met) Site Coverage: 70% maximum None, unless required by land use permit conditions of approval related to screening, landscaping, design guidelines, etc. 50 feet or 3.5 stories, whichever is lessCG General Commercial PF Public Facilities Residential Not PermittedDetermined through the Land Use Permit Process Front: 20 feet, or 30 feet for parcels 3 acres in area or more Other Setbacks: Determined through Land Use Permit Process 35 feet or 3.5 stories, whichever is less RC Resource Conservation One single-family residence per lot + one secondary dwelling unit (required Conditional and Minor Use Permits) Site Coverage: 20% maximum Minimum Lot Size: 80 acres Front: 30 feet Side: 30 feet, or 10 feet for parcels less than 43 acres Street Side: 30 feet Rear: 30 feet, or 20 feet for parcels less than 43 acres 35 feet or 3.5 stories, whichever is less TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 19 2: EXISTING CONTEXT calculated to be 3,644 square feet. When compared to total parcel area in the Study Area, this equates to a total building lot coverage of approximately 16 percent. Parcel and Site Depths Measuring from the Donner Pass Road frontage, the deepest parcel in the Study Area is the Truckee High School site at 912 feet. This is followed by the Tahoe Forest Hospital site (775 feet), the Gateway Shopping Center site (680 feet) and the Truckee Elementary School site (662 feet). As shown on Figure 3, most commercial frontages have a width between 100 and 300 feet. Parcel sizes are important because smaller parcels are often difficult to redevelop. Deeper parcels allow larger projects to reduce the feeling of “bulk” by having higher buildings located in the center of the parcel. Building Form Buildings in the Gateway Area reflect a variety of architectural styles that tell a story of how development patterns, design approaches, and aesthetics have evolved over time. Several buildings demonstrate traditional alpine designs with steep-pitched gable roofs, dormers, and exposed rafters combined with natural materials. Other buildings reflect more simplistic styles, featuring hip and gable roofs with lower pitches and flat roofs. Most buildings in the neighborhood are one-story in height with a few two- and three-story buildings distributed along the corridor. Building Size and Lot Coverage Buildings in the Gateway Area vary greatly in size. The largest structures are located within the Truckee High School, Gateway Shopping Center, and Tahoe Forest Hospital sites. Each of these sites have buildings that are larger than 100,000 square feet. There are a total of 335 structures in the Study Area, with the average (mean) building footprint TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY20 2: EXISTING CONTEXT Figure 3 Building and Parcel Sizes TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 21 2: EXISTING CONTEXT Streetscape Character The streetscape character along Donner Pass Road can be characterized as auto- oriented. It features wide vehicle travel lanes, a center turn lane, and pedestrian and bike amenities that are available, but inconsistent in design and quality and often lacking connectivity between properties. Streetscape conditions and safety were recently improved with the implementation of some Envision DPR project components. This included wider sidewalks, landscaped medians, crosswalks, and bicycle lanes on the western part of the corridor. Even with these changes, there are numerous wide driveways and limited and narrow sidewalks – indications that streetscape is tailored primarily for vehicle use. Aesthetically, the Donner Pass Road corridor offers views to surrounding mountains and open spaces. There are some recent landscaping improvements (tied to early phases of Envision DPR) and only a few existing community gathering areas not associated with a school or business. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY22 2: EXISTING CONTEXT Existing Typical Right-of-Way: Eastern Side (Highway 89 South to the McIver Crossing) Existing Typical Right-of-Way: Western Side (Cold Stream Road to Highway 89 South) Existing Right-of-Way: Western Side The existing right-of-way on the western side of Donner Pass Road (between Cold Stream Road and Highway 89 South) is typically 80 feet wide. It includes two travel lanes, a center turn lane, striped (Class II) bicycle lanes, and on-street parking on the north side of the street. Wider sidewalks and pedestrian mid- block crossings were recently installed as part of the Envision DPR project. Existing Right-of-Way: Eastern Side The existing right-of-way on the eastern side of Donner Pass Road (between Highway 89 South to the McIver Crossing) is typically 80 feet wide. It includes two travel lanes, a center turn lane, striped (Class II) bicycle lanes, and intermittent on-street parking on both sides of the street. Sidewalks are inconsistent along this part of the corridor; however, some recent mid- block pedestrian crossings were recently constructed that were tied to new development projects and the hospital. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 23 2: EXISTING CONTEXT Bicycle, Pedestrian and Transit Amenities The Gateway Area is an ideal location for bicycling most of the year and is often used by recreation and commuter cyclists. As shown on Figure 4, there are currently Class II bicycle lanes along the entire two-mile length of Donner Pass Road within the Study Area (e.g., painted and signed bicycle lanes between the vehicle travel lane and parking). While these lanes help support cycling throughout the Study Area, there are very few businesses and properties that offer secure bicycle storage and parking. Pedestrian facilities in the Gateway Area vary in quality and consistency. As shown on Figure 4, some parts of Donner Pass Road have limited to no pedestrian amenities (including sidewalks), while others have recently upgraded amenities. Additionally, there are many rolling curbs that act as vehicular access drives to commercial businesses. All of this can make it difficult for pedestrians to safely navigate the corridor. Several new mid-block pedestrian crossings have been installed to help create safer access across Donner Pass Road. They vary in design, with some being simple striping and signage, and others including flashing crosswalk signals and landscaped medians. The Gateway Area is also served exclusively by the Tahoe Truckee Area Regional Transportation (TART) bus transit service through several routes. The TART Highway 89 Route connects to Downtown Truckee and includes three stops on the east side of the Study Area. The Truckee Local line runs the length of the entire corridor with a terminus at Donner Lake, a loop around Downtown Truckee, and access to other areas of Truckee and North Tahoe. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY24 2: EXISTING CONTEXT Figure 4 Bicycle, Pedestrian and Transit Amenities TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 25 2: EXISTING CONTEXT Driveways, Site Access and On-Site Parking As shown on Figure 5, driveways that enter directly onto Donner Pass Road vary in width. Older developments typically have larger access driveways and/or frontages that include parking (some with curb cuts that run up to 150 feet in length). These large access areas diminish pedestrian facilities and decrease overall walkability. Newer developments, in turn, typically have narrower driveways that access side or rear parking areas. This improves walkability and the pedestrian environment along the corridor. On-site parking is available at most (if not all) commercial and public destinations within the Study Area. As shown on Figure 5, larger developments, such as the Tahoe Forest Hospital and Gateway Shopping Center, have large amounts of on-site parking available. One challenge within the Study Area is the consistency and clarity of on-site parking. Many commercial projects have surface parking lots that do not have clear markings (due to weathering) or clarity between access through parcels. Additionally, many of the parking areas do not delineate pedestrian areas and most businesses do not provide secure bicycle parking. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY26 2: EXISTING CONTEXT Figure 5 Driveways and Site Access TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 27 2: EXISTING CONTEXT Economic Conditions The Gateway Area includes a variety of existing retail, dining, and commercial uses that serve both residents and visitors alike. These businesses are an important economic resource for the town, as they provide jobs, services, and tax revenue for the entire community. The neighborhood also includes two of Truckee’s largest employers, the Tahoe Forest Health System and Tahoe Truckee Unified School District (TTUSD), both of which employ approximately 520 people (1,040 combined jobs). The following is a summary of the major economic conditions in the Gateway Area. Real Estate Conditions While the Gateway Area has long been a location for larger commercial and employment uses, redeveloping existing buildings or creating new buildings has historically been a challenge in this area. There are several important factors that influence real estate in both Truckee and the Gateway Area: »Most properties in the Gateway Area have existing revenue generating uses that pose challenges when trying to redevelop these properties into new projects (e.g., there is less economic incentive). »There is a gap between current workforce wages and the high cost of new construction. »On-site parking and snow storage requirements increase the overall construction costs for projects. »Local construction labor and materials costs continue to rise in the region. »More recently, there has been rapid demographic change during the COVID-19 Pandemic that has resulted in a sharp rise in housing costs, both for-sale and rental housing. It is not clear if these impacts will subside post-pandemic, but growth in higher end and affordable housing has left a void of new middle-income/workforce housing. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY28 2: EXISTING CONTEXT Retail and Dining The retail and dining industries have seen significant changes in the past decade. Truckee, as a major tourist destination, has traditionally seen an uptick in retail and dining sales during peak tourist seasons when more people are in town. However, during the COVID-19 Pandemic, there has been a sharp increase in year-round residents in Truckee and the region. This shift has changed the dynamic of local businesses both in a sense of staffing and the types of services they provide. In addition, there has also been a pivot to temporary outdoor dining and retail spaces needed for social-distancing requirements. These spaces allow for ongoing operations during mild weather but are challenging to operate during colder winter months. Housing Availability The housing market in Truckee has dramatically changed in the past 18 months. The COVID-19 Pandemic upended traditional work, commute, and housing models. As more industries and companies adapted to further embracing the “work-from-home” model, housing markets in desirable natural and recreational areas, such as Truckee, have seen a dramatic uptick in new residents. This has resulted in an increase in homes sales and values in 2020 and the early part of 2021. Though the long-term impact on residential property values is unclear, the region saw median housing values increase by 66.7 percent between April 2020 and April 2021. Prior to the COVID-19 Pandemic, approximately 55 percent of all housing units in Truckee were held vacant for seasonal or occasional use. This high vacancy rate corresponded to a progressive reduction in housing availability for full-time residents and the local workforce. A key challenge moving forward is to identify strategies to ensure the local housing market includes for- sale and rental units that are affordable and available to the local workforce. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 29 2: EXISTING CONTEXT Development Prototypes and Financial Feasibility Analysis A major goal of the Innovate Gateway process was to analyze the potential for more mixed-use and workforce housing development in the Study Area. Housing is typically categorized as either affordable or market rate. Affordable housing generally indicates a subsidy that allows a housing authority or affordable housing developer to provide home ownership or housing rentals at a cost that is below market. Market rate housing usually indicates that housing projects are developed at a cost that the market will bear for buyers and renters. Workforce housing is different and often falls through the gap where working households cannot qualify for publicly subsidized housing and cannot afford market rate housing. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY30 2: EXISTING CONTEXT To fully analyze the current development conditions in Truckee, the Project Team created a series of conceptual “prototypical” development projects for new mixed-use and multi-family workforce housing. These prototypes were based on community and stakeholder ideas and included a range of townhome, mixed-use and multi- family concepts at different densities and intensities. The Project Team also interviewed local developers and builders to determine current development assumptions, construction and labor costs, and other factors that were used to create pro forma analysis on each prototype (e.g., financial summary of actual development costs). The following is a summary of the prototypical projects and the results from the financial feasibility analysis (the full analysis is included as Attachment C). Development Prototypes The Project Team created five development prototypes that generally reflect the types of development the Town and community would like to see in the Gateway Area. Combined, the five prototypes represent a range of development types (mixed-use, townhome, multi-family), intensities (residential density, floor area ratio, height), and layout based on typical site characteristics along the corridor (parcel size, depth and width). The draft prototypes were presented to the community and discussed during Workshop #2. Based on community feedback, the highest intensity multi- family residential prototype was removed from the analysis, which consisted of 5-story buildings at approximately 40 dwelling units per acre. The four remaining prototypes are shown on the following page. As noted, none of the prototypes are feasible based on current market and regulatory conditions. However, each prototype helped to inform changes and new strategies that are included in this document. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 31 2: EXISTING CONTEXT Prototype Concept #1 Medium Density Townhomes This prototype is a medium density townhome project that could be well suited for deep and narrow lots located on Donner Pass Road. Each townhome would be 2.5 stories and approximately 1,240 square feet. This would result in a density of roughly 18 units per acre. This concept is not financially feasible under current market rate conditions. A developer would need to take one or more of the following actions to achieve financial feasibility: »Decrease the total hard cost by five percent. »Reduce soft cost from 22 to 18 percent of hard cost. »Reduce profit from 12 to 10 percent of total cost. »Increase sale price of each unit by four percent. »Locate the project on public land. Prototype #2 Higher Density Multi-family This prototype is a higher density multi-family project that includes 72 rental housing units in four, four-story buildings, with unit sizes ranging from 620 to 1,100 square feet. It would include a mix of one-, two-, and three-bedroom units. This concept is not financially feasible under current market rate conditions. A developer would need to take one or more of the following actions to achieve financial feasibility: »Reduce developer profit from 12 to 10 percent. »Increase rents by 15 percent. »Locate the project on public land. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY32 2: EXISTING CONTEXT Prototype #3 Infill Mixed-Use This prototype is a mixed-use development that incorporates housing and additional commercial space by leveraging underutilized surface parking. The project site is one acre in size with a density of roughly 12 units per acre. The development includes 23,000 gross square feet of commercial space on the ground floor(s), along with 11 residential units on upper floors. Neither the commercial or residential component are independently profitable. A developer would need to take one or more of the following actions to achieve financial feasibility: »Reduce land costs by 50 percent. »Reduce hard costs by 10 percent. »Reduce soft cost from 22 to 18 percent of hard cost. »Decrease profit from 12 to 10 percent. Prototype #4 Infill Mixed-Use This prototype is a mixed-use development with a residential focus. The project includes 4,080 gross square feet of commercial space, with a total of 40 residential units. The site is 1.4 acres with a density of 29 units per acre. This prototypes is not financially feasible under current market rate conditions. A developer would need to take one or more of the following actions to achieve financial feasibility: »Reduce hard cost by 10 percent. »Reduce soft cost from 22 to 18 percent. »Reduce profit from 12 to 10 percent. »Increase residential rent by 10 percent and commercial rent by 20 percent. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 33 2: EXISTING CONTEXT In general, mixed-use development faces challenges to feasibility compared to 100 percent residential projects. While the Town may be able, in some cases, to leverage the profitability of high- end residential development, such development is most closely oriented towards the high-value second home market and would do little to advance the workforce housing goals for the Gateway Area. Similarly, opportunities may exist to leverage publicly owned land along the corridor to provide opportunities for below market rate or dedicated workforce housing, the resulting increase in cost associated with accommodating prevailing wage labor create additional hurdles to development feasibility. Financial Feasibility Analysis The Project Team analyzed the development characteristics of the four prototypes though a detailed pro forma analysis. A pro forma is a method of calculating financial results using certain projections or presumptions. This included interviewing several developers in the region to ascertain development costs and revenue assumptions for similar and recent projects. The analysis showed that new construction in the Gateway Area is difficult to accomplish from a financial feasibility perspective under current market conditions. High land costs in the Gateway Area are the greatest factor contributing to the overall feasibility of new development projects. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY34 2: EXISTING CONTEXT The following are key takeaways from this analysis and approaches the Town can pursue to make new development projects in the Gateway Area more feasible: A. Reduce the Impact of Land Cost on Feasibility The particularly high cost of land along the Donner Pass Road corridor is a key factor contributing to the infeasibility of the development prototypes. Interviews with representatives from the local development and real estate industries indicate that the price of land in the area is generally determined based on the perceived current and anticipated future value associated with development of visitor serving uses, such as high-end townhomes, condominiums, hotels and associated retail uses. Among the immediate options for reducing the impact of land cost on development feasibility is increasing the allowed density, which helps to spread the gross land cost across a larger number of units. Other similar actions include increasing allowable site coverage and reducing parking requirements to allow a developer to build comparatively more units. Another related approach is to allow developers to build smaller units, which aligns with assumptions from the recently completed MHC workforce housing needs assessment, which identified there is significant demand for studio, one-, and two-bedroom rental units among Truckee workforce households. Another approach is to adjust land use policies, through processes like the ongoing General Plan Update, and related development standards to better align with the community’s vision for the corridor. The Town can also look to partner with public landowners, such as the Tahoe Truckee Unified School District and the Truckee Donner Public Utility District, to explore opportunities for leveraging publicly owned land for the construction of higher density townhomes and multi-family rental housing to house their resident workforce. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 35 2: EXISTING CONTEXT B. Improve Attractiveness to Developers While affordability is a topic of particular concern, both within the residential and commercial markets, another important strategy for facilitating feasibility is to make improvements that contribute to the desirability of the broader Gateway Area. This includes public realm improvements like additional bicycle infrastructure; larger sidewalks; expanded and improved plazas, parks and outdoor dining areas; upgraded utilities and broadband; and increase transit services and rider amenities. Projects like these improve the livability of the area, both for residents and visitors, and make it a more pleasant place to do business. C. Provide Incentives The analysis also found that current Town permitting and impact fees, including the inclusionary and workforce housing in-lieu fee, are not among the top contributors to overall project cost. Nonetheless, as one of the few aspects of the development process that the Town has direct influence over, the Town could offer incentives, such as the Town paying or deferring a portion of the land use application fees, building permit fees, development impact fees, etc., for certain types of development that are desired in the Gateway Area. Fee waivers are typically best suited for infill developments in instances where the project is unlikely to generate significant impacts and in categories where the fees are not needed to offset the immediate cost of service provision. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY36 2: EXISTING CONTEXT Moving Forward The existing conditions analysis summarized in this chapter, including the detailed development prototypes and financial feasibility analysis, were used to help inform and refine the strategies included in this document; but, they were certainly not the only considerations. The wealth of community ideas, feedback and input received during the workshops, online surveys, pop-up events, focus groups, and stakeholder interviews were also used to define the community vision for the Gateway Area and ensure all strategies work together to implement that vision. TOWN OF TRUCKEE / INNOVATE GATEWAY STRATEGY 37 • IS trir4 J , ,ate,• A grill / v.. ret.l . ad i Pr Ip lI- I ■ f Ile