DeLand commission approves off-site parking deal to clear way for 84-unit affordable project

The DeLand City Commission on July 21 approved a resolution enabling a shared off-site parking agreement that supplies 20 spaces for a proposed 84-unit affordable housing development at 225 West New York Avenue.

The 3-2 vote follows months of debate about downtown parking, the long-term reliability of off-site spaces and the project’s ability to support ground-floor commercial activity. The applicant, Blue Sky Communities, is proposing 94 on-site spaces and the additional 20 county spaces at the Volusia County Records Management site to meet parking needs.

City Planning Director Carol (Planning Director) told commissioners the city had advised the applicant earlier that the 1.63-acre site initially was too small to support 84 units. After prior hearings, the city conditioned a parking waiver on the applicant securing 20 off-site spaces for the life of the affordable units (50 years); staff recommended denial because the county could terminate the county agreement and the city had no permanent alternative if that occurred.

Mark Watts, attorney for the applicant, said the county agreement designates county property (two adjacent county parcels) where the county may select the 20 spaces. Watts said the agreement requires the developer to install lighting, security cameras and reserved-signage on the off-site spaces and to provide quarterly utilization reports based on those cameras. He described two termination paths: termination "for cause" after written notice and cure opportunities, and a 5-year post-occupancy review by which the county may reduce or terminate spaces if utilization benchmarks are not met; the agreement gives the city 30 days to respond to county termination notices.

Commission discussion focused on where the county spaces would be located (Watts and staff said the county may choose but the project team pressed for spaces on the clerk/records site to the north because those are vehicle-accessible), how utilization would be measured and the consequences if the county ends the license. Watts and staff said the quarterly reporting will derive utilization from security-camera footage and on-site counts; the agreement provides a 120-day notice if the county starts a termination based on low use and a 45-day notice before a termination for cause is effective so the city can respond.

Vice Mayor Davis and Commissioners Dan Reed and Kevin Reed supported the resolution, citing the project’s infill location and affordable housing yield. Commissioners Piva and the mayor voted no, citing concerns about reliance on off-site spaces, the effect on ground-floor commerce and enforceability. The motion passed 3-2.

The approved resolution and the county license require the developer to produce quarterly utilization reports and to pursue alternatives if the county terminates the agreement; the resolution also preserves the city’s option to restrict leasing of units by attrition if the off-site parking is not replaced.

The applicant provided updated unit counts to match financing documents: 13 units at 30% of area median income (AMI), 52 units at 60% AMI and 19 units at 80% AMI or less; the project’s affordability covenants will be recorded for the planned 50-year term, the applicant said.

City staff noted that forming a dedicated parking fund or special parking district (the city’s other long-term option) would require an updated downtown parking study, identification of sites, and a payment mechanism — none of which are in place now.

Commissioners directed staff and the applicant to pursue locating as many of the county spaces as possible on the Records Management/Clerk parcel and to continue refining the utilization reporting procedures. Watts said the applicant will return with a site plan showing the exact on- and off-site spaces once detailed plans are complete.

The commission’s approval clears a major regulatory hurdle for the New York Avenue affordable housing project, but its long-term parking solution remains contingent on the county license and the data collected in the project’s early years.