Williamson County, TN, Developer [insert meta description] http://www.williamsoncountydeveloper.com Update on Garage Design Efforts I commented earlier on the effort by a developer to get Franklin to approve front-loaded garages as a modification of standards.  Franklin generally requires that front-facing garages be at least 20 feet behind the front facade of the residence, but this development asked for approval of garages only one foot behind the front facade.  The Franklin Planning Commission approved the modification last week, despite a staff recommendation against approval.  

There is a history of Franklin's opposition to front-facing garages, which is based on the visual impact of large garage doors facing the street and becoming the dominant visual element of a streetscape.  I agree that this can lead to monotonous residential subdivisions, and am glad that the standards discourage this design.  On the other hand, there has to be some diversity of design in any city, and there is a place for approving this design.  Obviously, the Planning Commission agreed that this was an appropriate site.

As you might expect, there was a valid concern expressed over precedent, but I believe that there will be little difficulty sorting out where designs make sense, and where some adjustment is necessary. 

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Ban on Transfer Fees This is an interesting article about a proposed Federal Housing Finance Agency ban on transfer fees that, while directed at more systemic issues, might be construed to prohibit transfer fees imposed by restrictive covenants on resales of individual residences.  Such fees are imposed in some developments and are designed to cover administrative costs, enhance reserve and capital funds, and ensure a "buy in" by new residents.

The actual Federal Register posting is here.

 

 

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Nashville Business Journal Column on Zoning Thought you might enjoy reading a column I wrote for the Nashville Business Journal regarding tips on rezoning efforts.  You can read a copy here.

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Neighborhood Schools The opening of Pearre Creek Elementary School in the middle of the Westhaven development in Franklin marks a significant change in Williamson County school design and location.  When Westhaven was proposed as a traditional neighborhood development, the developer's intention was to co-locate significant community elements in a walkable location.  A school was considered an important element of that design.

This ran counter to Williamson County school trends at the time.  Most schools were being located based on a auto or bus dependent model, and walking or biking to school was not accommodated, if not outright discouraged.  Part of the consideration was to avoid schools being identified with particular neighborhoods, since this complicated later rezonings.  There is a fine line between a school being supported by a neighborhood, and being "owned" by a neighborhood, making rezoning of school districts an emotional and wrenching process.  Unfortunately, in a school system as dynamic as Williamson County, such rezonings have been a recurring fact of life.

The County's decision to locate another school adjacent to a development on Clovercroft Road may signal the County's determination that schools can be integrated into residential neighborhoods.  This enhances walkability, creates community support, and increases the value of adjacent properties.  As the County moves forward, they will gain further expertise in design that will resolve issues of traffic and congestion.  If the County is aggressive in desiring these locations, and communicates to communities and developers desired locations, developers can integrate educational set-asides into their plans and donate the property.  Bringing the County in on the front end may enable the parties to select the best locations that avoid conflicts with other neighbors.

This contrasts with previous unwillingness on the part of schools to engage with either the communities or the developers with regard to future school sites.  It has taken some time to reach the current cooperative environment, and we can only hope that when the next wave of development occurs, the schools officials will be ready.

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Reconfiguring Developments A recent article in The Tennessean highlighted the "rebirth" of a failed residential development.  The purchasers of the development should be able to proceed since they were able to purchase the balance of the development for a lower price, and can therefore sell the lots at current market rates.  This price reset is essential to the residential market regaining its footing.  Notably, instead of $800,000 houses, the lot prices will support $500,000 houses.  This figure is still high, but reflects the Brentwood market in which this particular development sits.

In other popular locations, it is likely that the target market will be $250,000 to $400,000, while the "bargain" markets will be in the $100,000s.  Developers who purchased land at recently inflated prices, paid top dollar for development of infrastructure, and whose loans were based on higher lot prices for repayment are likely to struggle to survive.  The good news is that after the painful and financially devastating loss for the initial developer, the development may proceed with more modestly-priced houses that meet the current market.

This may not be enough, however.  I expect that the second-generation developers will also request that development plans be reconfigured with smaller lot sizes that are more appropriate to the reduced home sizes and prices.  We have already seen this process begin, with mixed success. 

All of this is a necessary process to keep residential sales and development moving forward, which is essential to the Williamson County economy.

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Brentwood's Dedication to Residential Zoning The Tennessean included news about the "donkey farm property" in Brentwood, which failed to get support for a rezoning to permit a senior living facility.  The quoted commissioners expressed a devotion to "residential" zoning, which apparently includes only single-family residential.  The property has also been previously proposed for a child-care facility and a post office. 

I live in Brentwood, and understand the commitment to relatively large-lot single family zoning.  Sometimes, however, this dedication doesn't match the situation on the ground.  You have a situation now in which those who want a loaf of bread, package of diapers or jug of milk are required to go to either the northern or southern boundaries of the City for support, except for a couple of grandfathered shoppette stores.  Further, there are just some properties that don't lend themselves well to single family development, and it appears that this includes the "donkey farm property" that sits at the intersection of Concord Road and Wilson Pike. 

Just for reference, also on Concord Road is a City library, County recreation facility, large and active "Y", and a church.  Senior living facilities are not noted for their excessive generation of traffic, even though there is staff and visitor traffic.  One wonders whether this was a case of careful consideration, or just a knee jerk reaction in favor of the status quo of development.  City staff, including the City Manager, also expressed doubt as to whether this area was appropriate for residential uses.

A complete community should include residential living for all segments, including seniors.  Finding the right locations to accommodate these needs deserves good faith efforts by all parties.

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Improvements to Franklin Zoning Process The Franklin Design Professionals Group had an interesting discussion today involving improvements to the zoning approval process.  Staff acknowledged that both the Plannign Commissoin and Board of Mayor and Aldermen (BOMA) have had reservations about approving projects using the current process.  The problem appears to be that the process uses a "bubble" concept plan that provides overall commercial intensity or residential density, and a general layout of the project, but doesn't show a detailed plan.  This is different from the former practice of using that zoning that incorporated a concept plan that was detailed down to the last parking space or lot orientation.

Under this process, decision-makers must approve broad concepts before the details are finally revealed.  This makes sense, as it is overly expensive for a developer to provide detailed plans until at least broad concepts are agreed upon.  Further, detailed plans submitted at the earliest conceptual stage of a project are almost certain to change, as construction and topographical issues, drainage, and market conditions will necessarily alter the final developed project.

Franklin staff has requested ways to provide more certainty for decision-makers, without tying the hands of developers or requiring expensive detailed plans. I applaud these efforts to make the process work better.

In my opinion, however, the current zoning ordinance approach strikes the right balance, proceeding from zoning to concept plan to regulating plan, with more detail at each stage.  This incremental approach avoids unnecessary expense, and ensures that when plans are presented, they are actually the plans that are intended to be implemented.  The safeguard for the uncertainty inherent in this approach is the process, and the development standards that are set forth in the 500 plus page zoning ordinance for Franklin. 

Each stage requires approval, and each stage is directed by Franklin's development standards, which are detailed and demanding.  Because of the economy, however, the BOMA has not seen a project go through this gradual, refining process.  As a result, there is no trust in the process.

Kudo's to staff, however, who see this problem and are trying to address it in helpful ways.

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Builder and Developer Anxiety There is a short article in today's Tennessean describing a meeting between Spring Hill officials with developers and builders.  The developers were expressing the concern that hangs over each of them of financial distress and ruin.  This is of course a real concern, as many developers have either had their assets seized by banks or filed bankruptcy.  Williamson County is actually doing better than most in terms of continued growth and home sales, but development is not immune to the effects of the broader economy.

There is an assumption that developers were making easy money during the boom years, and it was certainly true that there were profits to be made.  Most people don't realize, however, that the bulk of development profit is made on the back end of a development.  Prior to that time, revenue is going to pay back acquisition and development expenses and loans and equity investments.  The developer bears the risk that the development will succeed all the way to the end.  For those who were caught midway through a development, they literally face the prospect of working for no foreseeable profit.

The communities were happy to hang additional fees and requirements on developments during the good times.  Adequate facility taxes, building permts and additional property taxes resulted in significant cash flows to governments.  Now that things have changed, the question is whether governments can adjust to the new realities.  So far, I have not seen governments reacting.  Costly and time-consuming approval processes and significant fees continue to face any prospective development.

It is no surprise that developers were reaching out to the Spring Hill officials, and credit is given to those officials for listening to the concerns of this important part of our economic community.

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County versus City - Who Has Zoning Authority? There is an interesting development in Franklin concerning a proposed school on Clovercroft Road in east Franklin.  The County has purchased the school property, apparently without any conditions, but there is opposition to the siting of the school from neighbors.  From all accounts, there are genuine concerns over roadways and utilities for the site, which is at the eastern edge of Franklin city limits.  Although sewer is available to the school, Wilson Pike, which is the main roadway in the vicinity, is famous for the "one-way" railroad underpass within a mile of Clovercroft Road.  Presumably, traffic from the south would come to the school through this roadway.

The interesting aspect is the extent to which the County, in making its school selection, is bound by the City of Franklin's zoning ordinance.  The County has to date pledged to go through that process, but it is not clear that the required rezoning, from Residential to Civic/Institutional, will be approved by the City's Board of Mayor and Aldermen. 

Tennessee law is pretty well-settled on this issue, although one could argue some unresolved matters.  The Supreme Court has previously held that the State was not subject to county zoning regulations despite the fact that the State had sought approval of county zoning authorities. The Court also held that a private act creating local zoning authority did not waive governmental immunity of the State or its instrumentalities unless the intention to do so was clearly expressed in the act.  The general principle of governmental exemption from ordinances, as expounded in other cases, applies not only to the State government, but all instrumentalities of the State, including counties and cities.  In other cases, a city was not entitled to impose taxation to a county property.

Of course, just as important to the County is the timing of the school's opening, which is desired for fall of 2011.  A lawsuit brought by the City that had the effect of delaying the school could be a powerful weapon simply because of the delay involved.

This is not the first time that the City of Franklin has suffered public outcry due to the location of a civic instituion, including churches.  The City and County are commendably cooperating on this issue, but if Franklin officials ultimately reject the siting of the school, you can expect some serious legal challenges to ensue.

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Side Loaded Garages A recent Tennessean article highlighted a request to waive Franklin's residential design standards that restrict front-loaded garages.   The Zoning Ordinance actually does not prohibit street-facing garages, but restricts their placement, size and design, including a requirement that the garage will be 20 feet behind the front facade of the dwelling. 

Franklin's bias against street-facing garages stemmed from subdivisions that are dominated from a street view of garage doors. Where the garage door overwhelms the house, or where the street view is a series of garage doors, the result can be a shabby appearance (even without the hotrod).  From this point, however, Franklin went on a binge, even considering an absolute ban on street-facing garages. 

This kind of restriction goes farther than maintaining an overall quality of design, however, and is more suitable for restrictive covenants in a neighborhood.  It ignores the variety of design and price that needs to be present in a community.  it is similar to the recent consideration of banning all chain link fences in Franklin.  Thankfully, in both cases, the restrictive efforts did not gain final approval.

The current Zoning Ordinance restrictions appear to provide a good balance between the aesthetic goals and functionality, but even these restrictions don't always make sense.  The 20 foot setback is probably overly severe, particularly if the other design requirements are included that, among other things, prevent an oversize, unbroken door being the main visual element of the facade. 

The restriction also prohibits the courtyard entry design, which is a very efficient design for smaller lot homes, but which avoids the visual problems of a street-facing garage.  This is an example. 

 

As with any restriction, some flexibility can be useful to ensure that great ideas are not held back, and to meet unforeseen circumstances.  The City should strive for quality, but not force everything into a similar, high-priced, product line.

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Legal Notice Requirements for Rezonings A recent Tennessee Court of Appeals case ruled invalid a rezoning when the published notice to the public was insufficiently informative.  The Court determined that the notice must be specific or complete enough to enable the average person to determine whether his or her property might be affected by the proposed change.  Further, the Court cited language indicating that if there is doubt as to the adequacy of the notice, the doubt would be resolved against the notice. 

This may leave some question about how specific the language must be.  Is it sufficient to recite only the change or to cite the new zoning category, or must there be an explanation of what the category might mean? 

In this case, the suit was brought by a party whose property had been rezoned.  One could imagine, however, adjacent neighbors using this argument against rezonings that they had opposed unsuccessfully.  My recommendation is to review the proposed language of the notice, which is usually done by the governing authority, to avoid this vulnerability.

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Is Franklin Ready for Corporate Relocations? A couple of similar events have caused me to think about Franklin's readiness for economic development. The announcement of Jackson National Life Insurance Company's relocation to the Cool Springs area of Franklin was the latest in a number of corporate relocations. It also consumed the last significant available office space. When companies are considering relocating to Franklin, the availability of suitable space is frequently key, and having that space available now, rather than dependent on future construction, may be important.

The County’s Director of Economic Development, Matt Largent, recently made this point. In a presentation to the Brentwood Cool Springs Chamber of Commerce, Largent is quoted as saying “While some space still exists for building new office buildings, many prospects are on a fast track and want something available immediately or very quickly and that is where the county has a shortfall.”

I also attended a NAIOP presentation by the Nashville Chamber’s Chief Economic Development and Marketing Officer, Janet Miller, discussing their new strategy for economic development. Once again, the availability of sites is key to that strategy.

My concern has been that Franklin is taking economic development for granted, and is not actively working to prepare the City for the recruitment of new companies. I recently spoke to Matt about this, and was pleased to hear him say that the City and County are assessing potential sites to lay the groundwork for future development. In my opinion, however, the City should be actively considering how best to encourage the use of these sites. This is particularly troubling given the difficulty of gaining approval in Franklin, even when the property is properly zoned.

I don’t know of any more favorable economic growth than the relocation of corporate headquarters to Franklin, which supports property taxes, the housing market, and the image of the community. Taking steps to support those relocations is just good sense.
 

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Higher Development Fees? Franklin is considering raising development fees, with the stated purpose of covering staff costs associated with processing development reqeusts, such as rezoning.  If such fees are raised only to account for the passage of time and "normal" increases, this probably won't present a problem.  If, on the other hand, this is just an effort to raise funds, and fees are significantly increased over time, this will be a real burden to smaller projects.  Franklin is already an expensive place in which to development, not so much because of fees, but because of the costs of the extensive process and design requirements.  An additional consideration is that these fees are paid before a project is approved, and require that a developer invest significant funds with the hope of gaining approval.  This likely means that neither investor dollars nor debt financing can be used for these fees.  As a result, the start-up costs may deter some development.

Finally, this ignores the significant tax increases resulting from successful development, which fund a significant portion of City services on an ongoing basis through property taxes and, for commercial projects, sales tax revenue.

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Less Government Leasing? A recent Washing Post article highlighted an order by the Obama administration to reduce federal building costs.  This could result in reductions in federal leasing requirements for commercial space. Although this isn't the primary mover for leases in the middle Tennessee area, this could result in decreased demand for office space.  If the goverment abandons government-owned buildings, this could make some attractive locations available, however.

Areas in which government operations are a significant presence should feel the impact more.

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Survey for City of Franklin Services The City of Franklin staff has asked for participation in a survey about the strengths and weaknesses of the City's development regulations and services.  Please take 10 minutes and let them know your views on their services.  The survey can be taken by clicking on the link below.

http://www.surveymonkey.com/s/J2GHHZB

 

 

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