Planning commission recommends rezoning for Terra Strada development with conditions; urges caution on CRA participation

The Hooper City Planning Commission on April 10 recommended approval of a rezone request from Terra Strada LLC for property near 5500 South and 4700 West, with a set of conditions the commission asked the city council and the developer to consider before final council action.

Brett Wallin of AWA, representing Terra Strada, presented project materials and a fiscal overview the applicant paid for. Wallin said the project could deliver mixed commercial and residential development and that the applicant was open to development agreements and negotiation on density and unit types. The applicant’s materials included an LRB fiscal-impact analysis and a lift-station cost estimate (JV estimate in application material of roughly $2.33 million to $3.0 million for a required sewer lift station).

Commission discussion focused on infrastructure and fiscal risk. Commissioners noted the LRB analysis projects a positive net present value over 25 years (the study cited a net-present-value figure in the materials) but also showed the city could face early-year fiscal shortfalls under certain assumptions. The commission discussed whether a tax-increment-style Community Reinvestment Area (CRA) or a Property Improvement District (PID) would be appropriate to fund the lift station and other infrastructure. Several commissioners said PIDs have produced problematic outcomes in other states and expressed wariness of shifting long-term fiscal risk to the city or to future residents.

Other staff and commission points: - The JV lift-station cost estimate included in applicant materials was discussed as a potential project cost to be addressed by developer funding, CRA tax increment, PID, or another mechanism. - Commissioners and staff noted the project as filed may require an amendment to Hooper City’s general plan or an ordinance change before final approval, because requested zones (including an R-4 reference in the developer’s paperwork) are constrained by ordinance language dating to 2013. - Commissioners weighed zoning tools. The commission discussed whether a "patio" designation or a planned-unit development (PUD) would best meet goals such as moderate-income housing or senior-oriented patio homes; staff pointed to ordinance provisions requiring minimum acreage and open-space percentages for PUDs that affect maximum achievable density.

After discussion, the commission moved to recommend approval with conditions. The motion (moved by Commissioner Prince; seconded by Commissioner Sheldon Greener) included the following recommendations for the city council and developer: - The city should not participate in a CRA for this project (the commission recommended the city not be a CRA funder as part of its recommendation). - A commercial anchor (the larger retail/market component intended to drive other retail tenancy) should be secured and completed prior to the build-out of residential units in the project area. - The developer should evaluate both the PUD and patio zoning options and consider a patio/PUD approach that includes moderate-income housing or 55+ patio homes to qualify for discretionary density bonuses in the ordinances. - If the rezoning requires an amendment to the general plan or ordinance language, the applicant should follow the statutory process; the recommendation can be contingent on any necessary general-plan action.

The commission approved the recommendation by voice vote and referred the rezone recommendation and developer materials to the city council for final action and for negotiation of a development agreement if the council chooses to proceed.

Commissioners urged city staff and council to review the LRB fiscal analysis and JV lift-station estimate in detail, to confirm which infrastructure costs would be paid by the developer versus those that could require public funding, and to consider protections for current residents and for the city’s long-term fiscal health.