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
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