From the staff report in the agenda packet for the May 9, 2023, Planning Commission meeting.
Ownership Opportunities
The Gateway Area Plan has three primary means for increasing ownership opportunities. First, as the unit count in the area increases to meet the housing needs of the rental sector, new units with comparable rents to bedrooms in single-family homes that are older will attract the current market sector renting single-family homes. The single-family housing stock currently in the student housing market will become less attractive as an investment asset, and those homes will open to the for-sale market. While this is not a guaranteed outcome, it is a reasonable market prediction.
Second, the developments within the Gateway will provide ownership opportunities in a variety of multifamily settings. Townhomes are likely to enter the market ahead of full airspace subdivision condominiums. But the for-sale market is highly likely to be built directly in the gateway area. This is particularly true of taller buildings that will take advantage of providing high-income housing on the upper floors of buildings. The higher sales prices will help these projects pencil. To encourage this type of development, the City is proposing a community benefit that credits development of for-sale housing.
Third, the redesignation of the Gateway Area from primarily Industrial Limited to effectively a mixed-use designation will allow single-family and townhouse development on small parcels. While the Plan principally permits high-density development for projects that meet the objective standards, provides housing, and provides community benefits, many of the parcels in the plan area are too small to build multistory buildings. These properties will allow for smaller scale housing development opportunities where currently they do not exist. While the majority of units will likely be developed for the rental market in the near term, the plans allow for and incentivize a range of ownership models.
From the staff report in the agenda packet for the May 9, 2023, Planning Commission meeting. “Ownership Opportunities” starts on the Page 3.