Planning Commission Agenda and Packet 2019 02 14

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commercial building (Building F). The Foundry is part of the Takoda (Streel Ranch) GDP, and was originally planned as a commercial hub for the Takoda development. One of the conditions of approval in the City Council resolution of approval for the PUD, subdivision and GDP amendment (see Attachment 3, Condition No. 5, Resolution No. 3, 2016) was that the "Residential and Commercial Development shall be constructed concurrently." The staff memo to City Council stated the following: ...staff believes it is important to require the applicant construct the commercial structures concurrent with the residential development and place a condition stating such. Planning Commission endorsed the condition as they are also concerned with the long-term reduction of commercially zoned property. The condition of concurrent commercial and residential development would be enforced through the development agreement where the City can use the issuance of building permits and certificates of occupancy to ensure concurrent development. The concern with replacing commercial development with residential development is that it could have a negative fiscal impact on the City due to lower sales tax revenues. A requirement for concurrent commercial and residential development was intended to ensure fiscal balance for the Takoda/Steel Ranch development. The original GDP for the property anticipated 76,055 sq. ft. of commercial development on the Foundry property, which was reduced with the current development scenario to 31,960 sq. ft. ANALYSIS: The applicant notes in their request letter that there is limited market demand for new retail and commercial development, and cite as an example that the Delo Plaza development, constructed in 2017, continues to have high vacancy rates and undeveloped pad sites. The lack of strong retail market demand is supported by a recent market analysis conducted by the City for the McCaslin Corridor, which concluded that within the next ten years there is anticipated market demand for 150,000 sq. ft. of new retail development in the regional market trade area. The amount that could be captured within any particular development is only a small portion of the total market demand. For example, in the McCaslin Parcel 0 Redevelopment Trade Area 5611, McCaslin Subarea City of Louisville Community Trade Area Regional Trade Area 4�u':rl. E.•i •f r.d nnii JSG>_ui.r i�p NC9EI,IEM1T� Planning Commission February 14, 2019 - Foundry Phasing Amendment Page 3 of 6 21