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HomeMy WebLinkAboutPZ - Applicant's Response to Staff Report 3-19 HAWKINS February 20, 2026 City of Meridian Planning Division, Community Development Department 33 E. Broadway Ave. Meridian, ID 83642 Re: H-2025-0007 Staff Report Response Dear Ms. Allen, Mr. Miles, and the Meridian Community Development Department: This letter serves as a response to the City of Meridian Community Development Staff Report for H-2025-0007. We have requested deferral of this item to March 19 to work through the outstanding items of concern from City Planning Staff. Introduction The spirit of our proposal is this — Hawkins aims to drive value for retail and residential tenants and the community by blending the City's Comprehensive Plan with local economic conditions. Economic realities drive tenant decision-making. The success of this development is dependent on a deep understanding of tenant preferences. Hawkins has a 50-year track record of driving commercial real estate success—we've developed 14 million square-feet of commercial space and almost 2,000 multi-family units across 28 states. The success of tenants is important to the community for several reasons. First, tenant success is community success. A successful retail tenant drives revenue. Revenue is an expression of community support in that residents vote with their dollars. Tenants are successful when the community supports them and unsuccessful when the community chooses not to support them. Similarly, a successful multi-family project provides housingwhere tenants desire to live—near services and jobs. If we do not construct multi-family buildings where tenants want to live,then rents will suffer, and the multi-family project will fail. In this way, building dense housing near commercial services is critical to the success of both residential and commercial tenants. Hawkins understands the elements of commercial real estate development that drive success for both retail and multi-family tenants. This project provides spaces that maximize success and minimize failure. Second, successful tenants drive economic value that generates municipal tax revenue. Commercial property taxes are based on assessed values, which are derived, in large part, 855 West Broad Street, Suite 300, Boise, Idaho 83702-7154 1 208.376.8522 1 hcollc.com from revenue. The higher the revenue of a commercial tenant, the higher its value, and the higher the revenue generated for the City. Similarly, higher the revenue of a multi-family project, the higher its value, and the higher the revenue generated for the City. Hawkins is seeking to maximize the value of the uses within this development, which will, in turn, maximize municipal tax revenue. Third, Hawkins is working through a State Taxation Anticipated Revenue (STARs) agreement with the Idaho Transportation Department (ITD). This will allow Hawkins to construct improvements to the transportation network that are above and beyond what is required to mitigate the impact of the development. The success of a STARs agreement for extensive improvements on Amity Road and SH69 relies heavily on the success of commercial uses within the development. If these uses are not projected to generate an adequate amount of sales tax revenue, we will not be able to participate in STARS, thus limiting the extent of the improvements along SH69 and shifting the burden of improvements to ITD and the community. Why Should the City Consider the Northwest and Southwest Corners as a Unified Development? On July 21, 2020, Hawkins and the City of Meridian held a pre-application meeting for an application covering the —26 acres on the Northwest corner of Amity Rd and Meridian Rd. This application called for a mix of multi-family residential and commercial uses. The proposal excluded the Southwest corner, which was being considered for a retail plant nursery/garden center. The message from the planning team to Hawkins at this pre-app meeting was clear— it was imperative to include both the northwest corner and the southwest corner of Amity Rd and Meridian Rd in an integrated concept plan so that the City could consider the development of the 55 acre site together, governed by a single development agreement. This is the proposal before the City today. There is no question that the City's Comprehensive Plan states: "contiguous Mixed Use identified areas that are bisected by an arterial or highway are considered separate and independent areas for use and design integration and will be evaluated independently of each other."We are not arguing about the existence of this statement.We also acknowledge that it is rare for two large parcels separated by these types of barriers to be considered for development by the same ownership at the same time. This creates a unique opportunity for the City and Hawkins to work on a truly integrated plan for an area of great future impact. This unique opportunity should not be lost to a statement designed to govern the lowest common denominator. We are suggesting that the two corners be considered as one development project because the success of one corner of the development is dependent on the success of the other. There is a symbiotic relationship between the corners that will create value for residents, commercial tenants, and members of the surrounding community. The site's history, the importance of the economic success of both corners, and the fact that the Comprehensive 855 West Broad Street, Suite 300, Boise, Idaho 83702-7154 1 208.376.8522 1 hcollc.com Plan is not parcel specific and defines the "character and type of use that is desired in the future," suggest that these 2 corners should be considered together. If nothing else, the presence of a single development agreement suggests that they should be considered as a single development. Hawkins spent significant time considering how the mix of uses across both corners would interact with one another and did not consider them separately.The potential presence of a STARs agreement further links each corner to the other. Hawkins thoughtfully placed a community-scale, grocery-anchored shopping center with a significant amount of shopping, office, retail, and personal service use opportunities on the NW corner of the development. Because of the grocery anchor, we know that the surrounding retail and personal service uses will be successful. This inherently reduced the amount of area available for residential uses on the NW corner to well below 50%. The same amount of community-serving commercial uses cannot be provided on the SW corner, because without a grocery anchor and corresponding trip capture, itwill not lease, leading to reduced community value (see Introduction, above). Instead, more area is devoted to multi-family uses,which will lease because of tenants' desire to be near(if not immediately adjacent to) a commercial center. Of course, the construction of multi-family units does not create additional demand for those units, it only absorbs the existing demand. Therefore, Hawkins will only build the number of units we can successfully lease. Because of the success of the Treasure Valley, and Meridian in particular, we know that we can lease all the apartment units that we construct. This is why we are proposing 18.23 units/acre over 17.7 acres on the SW corner of the project. Conversely, this density is important to attract quality retail tenants. Consumer demand is directly related to the number of rooftops within a trade area. Because the residential density of surrounding projects is —5 units/acre (per the Staff Report), there are simply not enough rooftops within walking distance to support a grocery store and pads that do not have significant visibility to major roadways. Given this density, we know that most of the trips to and from the site will be in a vehicle. However, the more density that is added within walking distance of the commercial uses on the site, the higher the share of community users that will walk and bike to them. In other words, the share of non-automobile trips relative to automobile trips to the commercial development within the project is unequivocally directly related to the number of housing units located on the NW and SW corners of the development. The more households located within walking distance of services, the more households will walk to them. Per the Comprehensive Plan,the goal of mixed-use areas is "to provide for a combination of compatible land uses within a close geographic area that allows for easily accessible and convenient services for residents,workers, and visitors."An important outcome of this goal is a reduction of both the length and quantity of external vehicle trips, which is noted throughout the staff report. We should not let prescriptive requirements preclude 855 West Broad Street, Suite 300, Boise, Idaho 83702-7154 1 208.376.8522 1 hcollc.com outcomes. We believe it is the outcome, not the prescription, that is truly desired. This project, at its proposed residential and commercial density, will achieve the outcome desired by the Comprehensive Plan. Staff Report Staff Report Section I.B. Response In the spirit of continued community success, please see our responses to Staff Report Section I.B. Issues/Waivers. 1. "The proposed development is not functionally integrated in holistic design and integration of uses per the design principles in the plan..." Staff Report Section 3 outlines elements of integration of uses and wholistic design. It is apparent in this review that the property is being treated as two separate development projects. We believe it should be treated as one. See above for our request. It appears that the concern with functional integration of uses is primarily focused on the SW corner of development.We cannot relocate pads away from SH69 or Amity Rd because the lack of housing density surrounding this project (-5 units/acre) necessitates that most trips occur with a vehicle. (See above-the denser our development, the lower the share of visitors that might need to drive to the site). Given that most people are driving to the site, adequate parking must be provided. This explains why the buildings and parking areas are in their current positions on the site. However, while we cannot relocate commercial pads to be away from major roadways, we can commit to further exploring options to enhance bicycle and pedestrian connectivity between the multi-family and commercial portions of the site. We will begin this exploration immediately and provide an updated plan for your consideration. In addition, we would like clarification on why the 1.2-acre park central to the SW corner development is specifically excluded from consideration as a quasi-public park in the staff report.While intended to serve the residents of the multi-family development,this park area is open to use by the surrounding neighborhood. Nothing prohibits, and indeed we expect, users of the commercial areas or neighboring residents from using the park. With the addition of enhanced pedestrian connectivity, care has been taken to ensure that there is adequate connective throughout both corners to create access opportunities across the entire development, both to and through the development. One example of this is the inclusion of a 10' pathway along not only Meridian Rd and Amity Rd, as required by the City, but also along Hermatite Rd. This pathway will be carried north of Amity as well, providing a bike/pedestrian crossing of Amity Rd that is not located at the intersection of a state highway. Furthermore, multiple bike/pedestrian pathways traverse the site (see our mobility/connectivity plan for more details). 855 West Broad Street, Suite 300, Boise, Idaho 83702-7154 1 208.376.8522 1 hcollc.com 2. "The SWC of the development is 72% residential with a gross density of 18.23 units per acre, which is 22% more than the maximum allowed of 50% and 3.23 units per acre over the maximum allowed density of 15 units per acres..." Our request to consider the whole 55-acre area as a single development area is discussed above. Please see the density calculation of the project below. PROJECT RB E A KDIDW N (RESIDENTIAL a E NS ITV} NW SW Project caner Corner Total Mdti-RwnhArea" t10 55 A-C t1.7.66 AC. 128.21 AC. Total Area * 1'44 ±30-66 AC- t24ASAC_ f55.11 AC. Total M ulti-Fami IV U nits 66 322 40B i5rass aerisltV of M4It i-F.0 mllV Sde,area. t8.15 U.P.A_ #18.23 U.P.A_ f14.46 U.P.lt Grass Density of Total Area *Z.80 U.P.A. 913.27 V.P.A. 0-40 U-P.A. 3. "The proposed C-G zoning district is too intense for the MU-C designated area..." Hawkins is agreeable to a mix of C-C zoning and C-N zoning where C-G zoning is currently proposed on the NW corner. Because the stated intent of mixed-use zoning designation is "to allow a high degree of design and use flexibility,"we want to maintain C-N zoning where L-O zoning - which significantly reduces land use flexibility- is requested by the planning team. The C-N zone allows this project to better address the needs of the surrounding community by providing spaces and services that are used by surrounding community members.The C-N zone allows fitness centers, artist studios,yoga studios, and martial arts gyms by right.The L-O zone does not allow these uses by right.The C-N zone requires a CUP for or prohibits auto-oriented uses, allowing City discretion over these uses in this zone. 4. "A mix of three (3) different land use types (i.e. commercial, office, residential, civic, and industrial) are required to be provided in the development area..." Even if the City chooses to interpret these as separate developments, both sides clearly provide 3 different uses.The SW corner, which is specifically identified as deficient by staff, has a civic use (a quasi-public open space for leisure and active play) in the park space, centrally located within the multi-family use, as well as other quasi-public areas identified in section 6, below. Between the central park (1.19 acres), community garden area (0.18 acres), park/plaza entrance NE of the multi-family clubhouse (0.37 acres), and commercial plaza shared by Lots 3 and 4(0.18 acres), roughly 7.5%of the SW corner area is quasi-public parks and/or plazas. 5. "Community serving facilities such as hospitals, clinics, churches, schools, civic buildings, public safety facilities are not provided in either development, which increases service and transportation network impacts." 855 West Broad Street, Suite 300, Boise, Idaho 83702-7154 1 208.376.8522 1 hcollc.com The NW corner includes buildings (-21,000 SF as shown) and lots (-3 acres) specifically designed to accommodate dental offices, clinics, personal and/or professional services or any other civic use, as well as the uses listed above in section 3.As flexibility is important to these spaces, we are requesting C-N for this area. The SW corner provides significant amounts of space within shops buildings (12,000 SF in buildings C and D) for the uses listed above. Space in these buildings is not designated for specific uses, any of these uses listed above could locate here. Finally, by definition, community-serving uses are uses that serve the surrounding community. These uses could include restaurants, bars, retail shops, coffee shops, a gas station, car wash, or bank in addition to hospitals, clinics, churches, schools, civic uses, etc. All of these uses might choose to locate within the development (on the NW and/or SW corner). The implication of their location decision is that they believe, and we believe, that they will successfully serve the community surrounding the site. 6. "Supportive and proportional outdoor public and/or quasi-public spaces and places such as parks, plazas, outdoor gathering areas, linear open spaces and schools, do not comprise a minimum of 5% of the development area on the SWC. These areas are not located between residential and non-residential uses to provide integration and transition between uses in either developed area." Our request to consider the entire 55-acre area as a single development area is discussed above. Furthermore, there are multiple quasi-public parks and plazas on the SWC of the development. Again, between the central park (1.19 acres), community garden area (0.18 acres), park/plaza entrance NE of the multi-family clubhouse (0.37 acres), and commercial plaza shared by Lots 3 and 4(0.18 acres), roughly 7.5%of the SW corner area is quasi-public parks and/or plazas.This excludes the pathway areas connecting these spaces. Finally, the addition of a more robust connection between the SW corner multi-family entrance and the commercial area will enhance the connectivity between the multi-family and commercial use. 7. The updated conceptual engineering plans for sewer and water service for the proposed development, submitted on February 13', have not yet been reviewed by the Public Works Dept. as of the date of transmittal of this report; therefore, it's unknown if this development can be serviced as proposed. Noted. We met with the City's Public Works Department on Friday, February 20 to discuss comments from City staff. We are committed to meeting the requirements of the City to adequately serve the development. 855 West Broad Street, Suite 300, Boise, Idaho 83702-7154 1 208.376.8522 1 hcollc,com Given this, we are respectfully requesting a recommendation of approval for our Syringa Crossing project (H-2025-0007). We look forward to delivering a quality mixed-use development to the City of Meridian. Please let us know if you have any questions regarding our proposal.We look forward to discussing these items in more detail. Sincerely, Ethan Mansfield Pre-Development Manager Hawkins Companies 855 West Broad Street, Suite 300, Boise, Idaho 83702-7154 1 208.376.8522 1 hcollc.com