City looks to expand successful program for infill

A Yuma plan to incentivize redevelopment or new development has been so successful, the city is now looking into expanding the program.

Adopted in 2017, the Infill Overlay District was designed to spur development on vacant parcels and encourage redevelopment of dilapidated buildings in the historic core of the city, much of encompassing old downtown, the Avenues and the Carver Park area and north of 16th Street to the riverfront between the levee and Avenue B.

Incentives enticed property owners to improve properties.

Prior to the program, an average of seven homes were built. Currently, the city sees an average of 20 new homes per year.

Also, many dilapidated homes have been removed and replaced. With reduced setbacks, this has been very popular. The city has also seen a lot of renovations with additions, residings and repainting.

“The numbers don’t do it justice what the infill has done,” said Randy Crist, interim director of community development. Crist and Alyssa Linville, assistant director of community development, recently updated the council on the infill program and presented a proposal for expanding the program.

When you drive the infill area, Crist noted, a new house is surrounded by

homes being fixed up. New homes and refurbished homes have inspired other homeowners to do the same.

“It really has made a difference,” he added.

Staff has proposed expanding the incentives to also offer density bonuses, expanded parking reductions, additional reductions in impact fees, offering standard plans for new residential development, exceptions to driveway widths, further preserving on-street parking options, and additional exceptions to development standards.

The program now allows small retail or service-based establishments, intended to primarily serve residents within the neighborhood. They are limited by roadway designation, size, hours of operation and on-site parking. Uses include grocery and produce sales, bakeries, delis, hair salons, etc.

The current boundary is based on the redevelopment element of the general plan. A general plan amendment could expand the current boundary to include the Big Curve and the Southgate Mall areas.

The plan amendment could be addressed in the comprehensive update in 2022, or sooner as a minor amendment. The proposed amendment would allow additional commercial uses within the residential districts of the Infill Overlay District. It would require a conditional use permit to allow input from surrounding property owners, a neighborhood meeting, property owner notification and a public meeting.

NEXT STEPS

The next step would be to process a text amendment to allow Limited Commercial (B-1) uses within the residential districts of the Infill Overlay and require a conditional use permit to address development standards including parking, signage, hours of operation, etc.

The conditional use permit process could allow further deviations from certain development standards and allows for more public involvement. The amendment would exclude certain uses in residential areas including adult oriented businesses.

Then the next step would be to expand the Infill Overlay District and update the Infill Incentive Plan. This requires amendments to the general plan to designate a new study area and the existing incentive plan to expand the existing incentives related to development within the district.

COUNCIL CONCERNS AND COMMENTS

Mayor Doug Nicholls said he was concerned with reducing parking size spaces and noted that a lot of people drive trucks and can’t find parking spaces. He also questioned whether the city should provide standardized plans because it would be in competition with the private sector. “To be frank, I don’t want to have 20 houses on a block that look the same. Of all that you presented, that would be the one that I would push back,” he said.

Nicholls also added he would prefer to go the way of a minor amendment just to get the expanded program underway sooner.

He asked whether staff had considered adding 16th Street and 24th Street west of 4th Avenue. Crist replied that they had concentrated on the 4th Avenue corridor and on wanting to help with redevelopment of the old Southgate Mall.

Councilwoman Karen Watts pointed out the shortage of housing and noted that families can’t find adequate and affordable housing. She asked if any new apartments were planned for the expanded area. Not currently, Crist added, but developers have discussed building duplexes and triplexes and this proposal might help push that.

Councilman Chris Morris said he liked the idea of the CUP because it engages the neighbors. He then asked about the vacant and abandoned buildings in the city. Crist said that empty big boxes continue to be an issue.

“It’s very unfortunate. I’m concerned that we might see more of them,” Morris said. “I feel over the years, the city was not very proactive in not following up on those buildings.”

Councilman Mike Shelton commended Councilman Gary Knight for championing the infill program in its infancy. He asked what staff foresees as taking over the Southgate Mall properties. Crist said possibilities include office buildings, restaurants, coffee shops, small retail businesses and even apartments, but not “large box-type retail.”

Councilwoman Ema Lea Shoop questioned onstreet parking, noting that a lot of people drive bigger vehicles. Crist noted that currently residential areas within the infill district allow up to 50% parking on the street and that many streets in infill areas are fairly wide.

Knight was happy with the infill program’s success so far. “The best way to make it better is to make it bigger,” he said. He agreed with the mayor in wanting to see it include the area on the west side of 4th Avenue, from 8th Street all the way to 16th Street and even farther. Those areas have a lot of room for infill and many older buildings, he said.

He also would prefer the minor amendment, “whatever we can do to get it done as quickly as possible,” Knight noted.

REDUCTION OR ELIMINATION OF FEES

Staff has also proposed establishing a program to cover the costs of development fees. Crist said it’s important for businesses to get a project “shovel ready” before they spend money on fees.

Another option is to further reduce or eliminate fees, such as construction permit fees. Currently, for a 3,000-square-foot office building, the total permit costs $5,200 and does not include impact and utilities fees. The permit for a 1,500-square-foot house is $3,300, and with a current 65% refund, it comes to $942 right now.

Nicholls said the fee reduction is a “good idea” but he also called for striking a balance since processing the permits still costs the city. Paying 45% of a fee is already a significant reduction, he added.

The mayor said he would prefer to defer fees to the permit stage or when the “shovel is in the ground,” when bank funding kicks in. He acknowledged that cash flow in the beginning of a project is tough.

Morris agreed with deferring fees, noting that most construction loans don’t fund the first phase and funding doesn’t come in until after the developer has the permits.

Knight said development fees should be minimal since, for the most part, infill residential areas already have infrastructure such as sidewalks and city sewer and water. Crist agreed and also suggested zero fees for demolishing a dilapidated structure.

Nicholls noted that expanding the infill program would set up more entrepreneurs to get started with projects after the pandemic. “I’m an optimist, and I believe we’ll come out of this,” Nicholls said. “This is one way to do this.”