Steve Richards of Eastern Oregon Development LLC has submitted two applications for property located at 455 E Elm Ave.  The first application proposes to amend the comprehensive plan map designation from Medium Density Residential to Commercial and amend the zoning designation from Multi-Family Residential to Neighborhood Commercial Overlay.  The second application proposes to annex the property with the NCO zoning designation.  The city may hold one hearing on multiple issues when one property is under consideration for all issues.

If the change from residential to commercial is approved, the applicant proposes to develop a portion of the site into a mini-storage facility similar to the one recently constructed by the applicant at 1330 W Highland Ave.  The remaining portion of the property will be reserved for additional commercial development.  A separate partition application will be submitted to the city following approval of the map amendments and annexation.

The property lies within a mixed use neighborhood, trending towards high intensity commercial use.  To the west are the Walmart Supercenter, restaurants, various commercial uses, duplex dwellings, and single-family dwellings.  To the south are a manufactured home park, the city public works shop, multi-family dwellings and other uses.  To the north are multi-and single-family dwellings.  To the east are industrial uses and open space. 

The property is large enough to accommodate a substantial multi-family development or a substantial commercial development.  Eleven acres can accommodate up to 220 multi-family units or 100,000 square feet of retail.  Uses permitted in the proposed NCO zone are listed in 157.043 of the Hermiston Code of Ordinances.

The applicant has submitted a transportation analysis from Clemow Associates considering the impact of the proposed amendment on the transportation network.  The analysis is not a full traffic study but contains adequate information to determine that the proposed amendments will not change the functional classification of the street network servicing the site.  The change in peak hour trips will increase by two trips if the amendments are approved and full scale commercial development occurs.

The site is close to water and sewer utilities in place at the intersection of NE 4th Street and E Elm Ave.  However, development of the site will require extension of these utility lines in E Elm Ave.

When amending the comprehensive plan to change property from residential to commercial, the city must consider the available supply of both residential and commercial land. The city commissioned a study in 2017 as part of another rezoning project. This study is still valid.  The city is in the process of preparing an updated study to comply with recently adopted legislative requirements in HB 2003. The conclusions of the adopted 2017 study and the draft 2020 study demonstrated that the city has more than 20 years of available residential land. The removal of 11.5 acres from the residential supply will not affect the city's ability to provide needed housing for the 20-year planning horizon. Similarly, the 2017 study demonstrated that the city has an adequate supply of Goal 9 (commercial and industrial land) to meet its 20-year demand. This property is well situated to be attractive for commercial development but is not necessary for growth. Since the city has adequate commercial and residential land to meet the necessary 20-year demand, the decision to change this particular property is based more upon policy than need.

It is the opinion of staff that the site is well-suited for both commercial and residential development.  The proximity to a minor arterial makes a large-scale apartment complex a viable residential prospect.  Conversely, the proximity to a state highway and a signalized intersection also make commercial development attractive.  The proposed NCO designation accommodates both commercial and multi-family development alternatives.  Staff's opinion is that the proposed NCO designation creates the best solution for the site.  This designation allows for commercial development and/or multi-family development.  It allows the site to develop in the most flexible manner for market conditions at the time development occurs.

Public notice was provided for the proposal. Notice of the proposed land use action was sent by direct mail to all property owners within 300 feet on November 18, 2020. Notice for the planning commission hearing was published in the Hermiston Herald on November 18, 2020 and November 25, 2020.  Notice for the city council hearing was published in the Hermiston Herald on December 23, 2020 and December 30, 2020. A sign informing the public of the proposal was placed on the property on November 18, 2020.

The planning commission held a public hearing on the proposed amendments and annexation on December 9, 2020.  Following the closure of the public hearing, the planning commission considered the evidence and testimony and made a unanimous recommendation that the city council annex the property with a NCO zoning designation.

• Motion to adopt findings of fact
• Motion to impose conditions of approval
• Motion to adopt Ordinance No. 2316
• Motion to adopt Ordinance No. 2317