CITY MANAGER’S OFFICE

MEMORANDUM
May 14, 2021

TO: City Manager Marcus D. Jones

FROM: Taiwo Jaiyeoba, Assistant City Manager/Planning Director

SUBJECT: Charlotte Future 2040 Comprehensive Plan – Q&A

At the May 10 special meeting, Mayor and Council members proposed revisions to the 2040
Comprehensive Plan and requested more information and clarity on several items as listed
below:

• Plan deliverables
• 10-minute neighborhoods
• Anti-Displacement Commission
• Community Benefits Agreement
• Equitable economic growth and infrastructure investment Commission
• Homeownership
• Industrial areas
• Neighborhood diversity/Implications of removing 2.1
• Economic analysis
Attached to this memo is staff’s responses to these.
Thank you!

Attachment.
Page Intentionally Left Blank
 CHARLOTTE FUTURE 2040 COMPREHENSIVE PLAN
May 10 Council Meeting Q&A

PLAN DELIVERABLES
• Separate plan into 3 parts (1) vision/constitution/plan (2) regulatory doc (includes
complete UDO); (3) implementation policies - have displacement analysis and approved
UDO prior to final vote).

Staff Response: Staff proposes to deliver the final plan in three (3) volumes: Volume I – Plan
Policy; Volume II – Implementation and Volume III – Appendices. If Council approves the
formation of an anti-displacement commission in the plan, the commission may be charged with
conducting a displacement analysis and the findings can be incorporated in the Plan
implementation document. Council may adopt the policy document (Volume I) in June.
Further, the Unified Development Ordinance (UDO) is a separate regulatory document which will
be completed and adopted by Council in Spring 2022. Per North Carolina General Statutes, a
comprehensive plan that provides a policy framework must be adopted first before regulations (in
this case, the UDO).

There are three adoption points in the overall process: Comprehensive Plan adoption (June 2021),
Place Types Map adoption (February 2022) and UDO adoption (Spring 2022).

10-MINUTE NEIGHBORHOODS
• Clarify the actual intent of the 10-minute neighborhood policy.
• Targeted 10-minute neighborhoods (where they can be successful)
• Augment 10 Minute Neighborhoods to not only consider things like brick and mortar
grocery stores rather the means by which Charlotteans will get their amenities by 2040
Staff Response: The revised language says “All Charlotte households will have access to essential
amenities, goods, and services within a comfortable, tree-shaded 10-minute walk, bike, or transit
trip by 2040. Not all neighborhoods are expected to include every essential amenity, good, or
service, but every resident should have access within a ½ mile walk or a 2-mile bike or transit trip.”
The intent of this goal helps achieve some objectives in our adopted Strategic Energy Action Plan
(SEAP), brings residents closer to jobs, access to full-service grocery stores and banks, reduction in
transportation costs and provision of mobility options for Charlotte’s transit dependent residents,
among other things.
Currently the plan includes a policy (4.16) which addresses the “use of micro-mobility solutions
(bike-share, scooter-share, etc.) to address intra-neighborhood circulation concerns.” Nothing in
the plan prevents additional, innovative, solutions for communities to have access to important
amenities. Further, the plan is a living document which will be updated periodically to reflect
trends in mobility.

Page | 1
 CHARLOTTE FUTURE 2040 COMPREHENSIVE PLAN
May 10 Council Meeting Q&A
The Plan acknowledges that this goal cannot be mandated; rather it is a critical aspirational goal to improve
livelihoods and create more equity in many Charlotte communities. Under Section 4.5 Fiscal
Considerations, Funding and Financing Tools, under “Community Amenities” it states:

“…the plan policies call for a variety of community amenities to be built to support the major plan
goals such as 10-Minute Neighborhoods. The community amenities identified in the plan include
day cares, healthy food stores/vendors, health clinics, banks, affordable housing units, and green
infrastructure. These amenities are often provided by the private sector and can become scarce or
non-existent in lower income neighborhoods due to market dynamics. Furthermore, the capital
hurdles to building amenities in areas lacking them currently can be too high to overcome by a
private business operator even if there is demand from the community. The City and County in
many cases do not provide or have control in the availability of these amenities. Many of these
amenities have been identified in the plan and by the community as essential elements to complete
neighborhoods or well-rounded employment areas. Creative solutions to leverage investment from
the private sector to create desired community amenities are needed to help support the private
and non-profit sectors in building and supporting these essential community assets. The plan has
identified the desire to explore new development impact mitigation tools and community benefit
partnerships as a way to provide support.”

ANTI-DISPLACEMENT COMMISSION
• Longer terms for anti-displacement commission
• Create permanent anti-displacement commission
• Anti-Displacement Committee (part of Planning Commission)
• Land purchases to mitigate displacement (i.e. transit lines)/part of equitable growth
framework
• Need anti-displacement commission and committee
• Commission to be appointed to develop recommendations during the implementation
phase of the 2040 Plan
• Anti-Displacement Commission's charge should be tailored to task at hand
• Displacement Commission recommendations before plan adoption (so they can be
included)
• Displacement analysis permanent process
• Purchase land in at-risk neighborhoods at the time of acquiring the land for transit lines
Staff Reponses: If approved, an Anti-Displacement Commission can be appointed as soon as the
final plan is approved. Similar to the City of Austin, TX, the Commission will be appointed by
Mayor and Council to develop recommendations which will be incorporated into the
implementation document of the 2040 Plan.

Page | 2
 CHARLOTTE FUTURE 2040 COMPREHENSIVE PLAN
May 10 Council Meeting Q&A
The commission can begin with an initial period of 12 months (as proposed in the plan) and
subsequently, based on Council evaluation and determination, continue on a permanent basis.
This Commission may be best positioned to focus on issues of gentrification and displacement
along transit corridors and areas of vulnerability. We advise against assigning land acquisition role
to an advisory body such as an Anti-Displacement Commission because they lack the authority to
make financial decisions on behalf of the Council. However, we advise that one of their
responsibilities would be to support land banking efforts in vulnerable neighborhoods and near
proposed transit lines. For instance, the Commission could be charged with exploring the creation
of a public-private fund to help finance the acquisition of property along transit corridors to
preserve the affordability of future housing and community facilities.
The current Charlotte-Mecklenburg Planning Commission is established by an interlocal
agreement (ILA) between the City of Charlotte and Mecklenburg County. If the Council decides to
include an Anti-Displacement Committee as part of the Planning Commission, this will require the
approval of the Mecklenburg Board of County Commissioners as it will mean revising the existing
ILA to create a new Committee.

The anti-displacement commission would be supported by staff and charged with performing a
displacement analysis and summit findings and recommendations to Council. They could also be
charged with findings and recommendations around growth and infrastructure in the City’s
vulnerable communities.

COMMUNITY BENEFITS AGREEMENT (CBA)

• More specificity for when CBAs are used (what is financial criteria vs what are the
minimum financial requirements from both public and private sector?).
• What is the city's role in CBA process (facilitators vs contract parties) - how are things
incentivized (with or without incentives)?

Staff Response: The Knight Foundation has agreed to fund an Urban Land Institute (ULI) Technical
Assistance Panel of national CBA experts to help define the details of the CBA process. The Panel
will examine how the community can be involved in the development process, what community
benefits can come from development projects, what tools can help communities organize and
effectively participate and the role/responsibilities of the City in the process. Following the Panel,
the City will evaluate their findings and develop a strategy for implementation that will be
incorporated into the Charlotte 2040 Implementation volume.
There are several ways CBAs are used in other cities. Generally, there is request that triggers the
need or requirement of a CBA that may include a rezoning request, access to incentives, or a
project of certain size. Several examples researched last year include:

Page | 3
 CHARLOTTE FUTURE 2040 COMPREHENSIVE PLAN
May 10 Council Meeting Q&A
- Detroit – A CBA is required when a private investment of $75 million or more is being made
OR a tax subsidy or incentive are requested OR when sale or use of public/city land is
involved.
- Houston – Access to tax abatements (the primary economic development tool for Texas
cities) requires a CBA and providing one or more identified benefits.
- San Francisco – They have a CBA program for the Central Market/Tenderloin area that
requires a company seeking a payroll tax abatement to enter into a CBA.
- Chicago – has a density bonus program where fees for the bonus go to a neighborhood
investment fund that is administered by a neighborhood organization

The plan does not mandate Community Benefit Agreements; rather, the plan references CBAs
as a possible program worth exploring since it has proven to be a successful program in other
peer cities, as noted above. Policy 8.14 states “Explore policies and programs, such as
Community Benefit Agreements, to support the development of new and retention of
community assets and amenities (such as existing childcare facilities in or near major
employment centers.

GROWTH COMMISSION
• Create the equitable economic growth and infrastructure investment commission

Staff Responses: There are many instances of cities (Seattle, Grand Rapids, St. Louis, etc.)
commissioning studies or initiatives around equitable economic development. However, there are
not many examples of cities with Commissions dedicated to equitable economic and
infrastructure growth. The City of Newark, NJ created an Advisory Commission on Anti-
Displacement and Equitable Growth to ensure that the benefits of new development extend to all
residents of limited economic means and to every neighborhood. In this instance, this Commission
works with different departments within the city of Newark on affordable housing, jobs creation,
land use policies and ordinances.
One option Council/Staff can explore is to assign this role to the proposed Commission on Anti-
Displacement.

Page | 4
 CHARLOTTE FUTURE 2040 COMPREHENSIVE PLAN
May 10 Council Meeting Q&A
HOME OWNERSHIP AS VALUE
• Homeownership (lift up local ownership as a value [part of keeping our character])
• Strengthen homeownership language - role of financial sector; bring all partners to the
table

Staff Responses: There are policies in the plan that support housing and home ownership with
links to small businesses (specifically policies 8.2 and 8.18). Generally, the comprehensive plan
elevates home ownership, especially in vulnerable communities, as vital to maintaining the
character and charm of our community.
Policy 1.28 in the plan currently states: “Work with credit unions and/or other financial
institutions to develop a program to deliver financial services and financial literacy educational
programs to neighborhoods that lack local access.”
Policy 3.11 states to “Investigate ways the City and other public agencies can leverage financial
resources or debt capacity to support incorporating affordable housing (for rent and/or
ownership) into new development projects, such as use of tax increment revenues.
A greater presence of “plex” housing will create more opportunities for home ownership if the
allowance of those types of housing is expanded. Currently home ownership primarily occurs
through single family detached housing as apartment construction does not often result in for sale
condominiums due to challenges in construction financing.

INDUSTRIAL
• Industrial areas - don't have to be concentrated around airport.
• Remove block lengths provision for industrial sites.
• Consider other changes recommended by industry representatives.

Staff Responses: The intent of the comprehensive plan is not to concentrate industrial uses in one
location, such as the airport area. Industrial-focused activity centers will be further refined during
the Place Type Mapping process. Staff has reviewed the recommendations provided by the
development community. In response, the block length has been modified in the place types to
maximum of 1,500 feet. The draft UDO will incorporate the maximum 1,500-foot block length, as
well as language that provides additional flexibility based on site conditions.

Other suggested changes related to building heights in uptown (for instance, we included a revised
language in the Regional Activity Centers place types, “the predominant building type is a mid- or
high-rise building (over five stories) with commercial, institutional, multi-family or a mix of uses in
the buildings. Buildings may be up to 20+ stories when developed with community benefits”),

Page | 5
 CHARLOTTE FUTURE 2040 COMPREHENSIVE PLAN
May 10 Council Meeting Q&A
definition of terms (for instance definition of micro mobility) and delineation of aspirational tools
(in the plan preamble) have been incorporated into the Plan.

ECONOMIC ANALYSIS
• Economic Analysis prior to implementation

Staff Responses:
A fiscal impact analysis has been conducted for the plan based on a proposed future growth
model. During Place Type Mapping, a market readiness and land suitability analysis will be
performed for a more detailed assessment of the preferred growth scenario and to help develop a
prioritization of areas for investment and/or to support more fine grain community area planning
efforts. Additionally, the fiscal impact models built for the City of Charlotte and Mecklenburg
County will be further developed to model the fiscal impacts of the Preferred Future Place Type
Map.
Before UDO adoption and implementation, an economic impact analysis will be performed by an
independent consultant, Economics & Planning Systems (EPS) (https://www.epsys.com/) on major
regulatory changes to identify the impact of the changes on the feasibility of development and to
help illustrate how the desired changes will be reflected in physical projects. EPS has been under
contract with the City since the start of the comprehensive plan and has been scoped to perform
this task during place types mapping and implementation (UDO) phase. Similar to the approach on
the Fiscal Impact Analysis performed by EPS, it will require critical input and support from various
departments such as Economic Development, Finance, Strategy & Budget and the City’s Chief
Economist. Additionally, outreach to external groups will be included in the analysis to identify
proforma inputs and review modeling efforts. EPS is currently scoped to address the following:
- Market readiness and land use suitability
- Preferred future place type map fiscal impact analysis (including modeling of scenarios)
- Economic development and housing program alignment
- UDO economic analysis (which includes documentation of major regulatory changes
impacting development feasibility and feasibility of major regulatory changes)
Prior to implementation, EPS will develop a public facing summary report that documents
major changes proposed, the summary of the feasibility analysis, and to illustrate how the
changes will impact prototype projects. The report is proposed to follow a similar outline to
the 2019 economic impact analysis completed for the City’s Transit Oriented Development
(TOD) ordinance program.

Page | 6
 CHARLOTTE FUTURE 2040 COMPREHENSIVE PLAN
May 10 Council Meeting Q&A
NEIGHBORHOOD DIVERSITY AND INCLUSION & POLICY SECTION 2.1
• If a SF Zoning district remains what assurance will we have that a place type has zoning
districts that use duplexes, triplexes such that there is a net gain in housing in each place
type?
• SF remains a viable housing option/zoning district along with other housing types.
• Allow “blended” housing options for new construction as part of Planned Developments
or subdivisions.

Staff Responses: Under policy 2.1, single family homes can be built, and a modified policy will
reflect that not every single-family lot will meet the requirements for plex units primarily because
of lot configuration and site conditions.

Currently, there is a severe lack of inventory of single family homes – only approximately 2,700
homes were for sale in March 2021 versus the 7,200 homes for sale prior to the pandemic. The
shortage of housing in our community will be further challenged by the expected growth of
385,000 people moving to Charlotte over the next 20 years.

There are approximately 180,000 parcels zoned for single family use in the City today under R-3, R-
4, R-5, R-6, and R-8 zoning districts. Of those, only 3,266 (less than 2%) can accommodate
triplexes and only a slightly higher number could accommodate duplexes if you include buildable
corner lots. In the last five years (January 2016 to December 2020), only 71 plex units were built
in Charlotte (according to Mecklenburg County Tax Parcel Data and Certificate of Occupancy).
100% of these units are duplexes. This indicates how current regulations serve as a significant
barrier to the construction of this type of housing. The lack of opportunity to develop missing
middle housing has placed tremendous pressure on the availability of single-family housing and
has driven the construction of rental apartments.

Policy 2.1 offers some solutions to mitigate the pressures on the housing stock now and in the
future by allowing the building of more middle housing. In addition, the development of missing
middle housing is critical to advancing goals of housing opportunities for all.

If Policy 2.1 is adopted as part of the comprehensive plan, single family will continue to remain a
viable housing option along with other housing types. Neighborhood 1 Place Type will continue to
support a “blend” or mixture of housing types (predominantly single family, duplexes and
triplexes). This policy will help Charlotte manage the growth expected as well as help accomplish
the need for housing diversity and opportunities for home ownership.

The implementation of an anti-displacement commission can provide additional safeguards to

mitigate any impact of plex units on vulnerable communities.

Page | 7
 CHARLOTTE FUTURE 2040 COMPREHENSIVE PLAN
May 10 Council Meeting Q&A
Under the draft plan, zoning districts will be designed to specifically implement each Place Type
(for example, Neighborhood 1 Place Type could be N1-A, B, C zoning districts) and will include
requirements to promote compatibility by regulating duplex and triplex placement and scale, as
well as parking location for new duplexes and triplexes. If duplexes and triplexes are not allowed
in the Neighborhood 1 Place Type, then none of the zoning districts within this place type would
allow duplexes and triplexes.
Finally, it is important to note that while Council can adopt a plan without policy 2.1, there will be
ripple impacts on plan process/adoption, place typing process/adoption and UDO
process/adoption. This could create a 6-9 months delay in plan process, adoption, place time type
and regulation adoption. As a result of removing policy 2.1, we will recalibrate our growth model
and projections, re-engage the community, push back the schedule for Place Types Mapping and
subsequently the UDO. The additional engagement will be needed to reconstruct the
Neighborhood Place Types and associate Zoning Districts. Further, City’s contract with MIG and
subconsultants end at the end of FY21 Fiscal Year. The scope and funding were based on an April
2021 adoption.
The next page displays a table summarizing the pros and cons of the policy options.

Page | 8
 Policy Options
Policy 2.1
Current Recommendation
Policy 2.1 Modified
Changing “All Lots to All Place Types”
Policy 2.1 Removed from Plan
Pros
• Achieves goals to provide more housing
options and goals within the Equitable
Growth Framework.
• Potentially create more affordability by
increasing housing stock.
• Improves proximity/accessibility to
essential goods and services, mobility
options, jobs and housing opportunities
• Addresses anti-displacement by
commissioning a Stakeholder group to
assist with Development of an Anti-
Displacement strategy
• Gives clarity how neighborhood character
will be addressed in development
standards within the UDO.
• Provides clear connection to Place Type
mapping process and community
engagement process.
• Allows the City time to reevaluate and
have additional engagement around
alternative options
• Avoids some opposition
Cons
• Does not adequately address displacement
or clearly state protection for existing
neighborhood character.
• Does not clearly connect to key
Implementation steps outlined in Place Type
mapping and the Unified Development
Ordinance (UDO).
• Creates the perception that the mapping
process for Place types will be different than
the current recommendation.
• Does not create a single-family only Place
Type or Zoning designation which is the
preferred option for some people.
• Will need to modify growth allocations,
place type modeling, fiscal analyses and
UDO development
• Delay in plan adoption, place type mapping
and UDO development process by 6-9
months.
• Need additional funding to extend
consultant contracts to complete the work
described above.
• Additional community engagement will be
needed to communicate the change and the
impacts to future growth and development.