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To: ABAGExecutive Board Submitted by: Ken Kirkey, ABAG Planning Director Subject: Process for formalizing Growth Opportunity Areas submitted via the Initial Vision Scenario Date: August 30, 2011

Executive Summary
Growth Opportunity Areas were submitted by local government staff for consideration in the Initial Vision Scenario. As regional agencies move toward selecting a Preferred Scenario for inclusion in the Sustainable Communities Strategy and develop financial incentives for Priority Development Areas through the OneBayArea Grant program, eligible Growth Opportunity Areas will need to be formalized as Priority Development Areas. Priority Development Areas have submitted fonnal applications with supporting local council resolutions. Growth Opportunity Areas will need to proceed through the same review and local support to be considered as Priority Development Areas.

Recommended Action
Staff recommends the following: • Approve the timeline and process for transitioning eligible Growth Opportunity Areas to Priority Development Areas. • Add the following place types to the menu of place types in the Station Area Planning manual, which jurisdictions self select from as part of their PDA application: Employment Center, Rural Town Center, and Rural Mixed Use Corridor. • Approve the criteria for these additional place types • Add to the PDA criteria that the minimum housing density be in line with the selected place type from the Station Area Planning Manual.

Next Steps
• • • • • • • Staff presents process for formalizing Growth Opportunity Areas to ABAG Regional Planning Committee: October 5,2011 Staff presents process for formalizing Growth Opportunity Areas to MTC Planning Committee with the ABAG Administrative Committee: October 14, 2011 Jurisdictions submit completed PDA applications by October 31,2011 Staff review of applications received: November 2011 Deadline for submitting local resolutions in support ofPDA Application: November 29,2011 Staff PDA recommendations presented to ABAG Regional Planning Committee with Planned/Potential status: December 7,2011 Staff PDA recommendations presented to ABAG Executive Board for final adoption with Planned/Potential status: January 19,2011

Attachments:
Staff Report

Item 10

Mailing Address: Location:

P.O. Box 2050 Oakland, Joseph P. Bort MetroCenter

ASSOCIA TION OF BAY AREA GOVERNMENTS

()
ABAG

MEMO
Date: To: From: Subject: August 30, 20 II ABAG Executive Board Ken Kirkey, ABAG Planning Director Process for formalizing Growth Opportunity Scenario Areas submitted via the Initial Vision

Background on Growth Opportunity Areas The Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) approach the implementation of the FOCUS Priority Development Areas (PDAs) as a key consideration for the development and adoption of the Sustainable Communities Strategy (SCS) under SB375. The PDAs comprise a network of neighborhoods that are expected to accommodate the majority of the region's population and employment growth. The SCS Initial Vision Scenario, released in March 2011, was designed around the places identified for growth by local jurisdictions. These places included the PDAs, already designated through the FOCUS program. They also included additional Growth Opportunity Areas (GOAs), some similarto PDAs and others with different characteristics for growth and sustainability. Based on local visions, plans and growth estimates, regional agencies distributed housing growth across the region, focusing on the PDAs and the newly identified Growth Opportunity Areas. With the identification of new areas for growth in the Initial Vision Scenario, 70 jurisdictions within the Bay Area now have at least one PDA or GOA. The PDAs and GOAs combined currently contain 22% of households. Based on the Initial Vision Scenario housing distribution, by 2035 these areas could contain about 34% of households, taking on approximately 72% of new household growth. ABAG and MTC have proposed a regional funding program, the OneBayArea Grant, that will support the implementation ofthe SCS at the local level. This proposal pulls together different transportation funding streams to support sustainable growth as envisioned in the SCS. As proposed, $211 million will be distributed among counties based on population, the Regional Housing Needs Allocation (RHNA), and actual housing production. Congestion management agencies would be able to spend seventy-percent of this funding stream on projects that support the PDAs, and thirty-percent ofthis funding could be spent anywhere in the county. The PDAs have undergone a formal process of designation, requiring city council resolutions. The GOAs, however, have only been proposed by city staff at this point. Given the possibility that regional funding will be tied more closely to the scale and quality of sustainable growth within local jurisdictions, it is important to formalize the Growth Opportunity Areas identified in the Initial Vision Scenario, as these areas will playa valuable role in the SCS. This memo outlines a process for Growth Opportunity Areas to beeome Priority Development Areas and recommends an expanded PDA criteria to include rural areas and employment centers and to ensure new PDAs are planning for appropriate housing densities. Process for Growth Opportunity Areas to become Priority Development Areas Staff has conducted a preliminary assessment of Growth Opportunity Areas submitted for inclusion in the Initial Vision Scenario to highlight that the majority of these areas seem eligible to become Priority Development Areas. However, given the potential role ofPDAs in RHNA and the OneBayArea Grant, GOAs need to provide more information for proper review and show formal commitment to being

designated as PDAs. Jurisdictions who want their GOAs to be considered in the Sustainable Communities Strategy and, thus, One8ayArea Grant will need to complete a PDA application to provide staff with the necessary information to evaluate the area's eligibility and status as Planned or Potential PDAs. A resolution in support of the jurisdiction's appl ication will also need to be submitted. Growth Opportunity Areas that do not meet PDA criteria or for which a complete PDA application is not received will not be considered for PDA adoption and will not be eligible for OneBayArea Grant funding. Only adopted PDAs will be eligible for these funds. Preliminary Analysis of Growth Opportunity Areas Jurisdictions submitted GOAs for consideration in the Initial Vision Scenario. Staff has reviewed the GOA information submitted and arrived at the following summary. As is being recommended in this report, jurisdictions who submitted GOAs will need to submit a full PDA application to enable a comprehensive review for PDA eligibility prior to making final recommendations for certain GOAs to become PDAs. Approximately 52 newly identified GOAs meet the criteria for PDA designation, namely that they are infill areas within existing urbanized areas and are served by high-frequency transit. These 52 new areas could accommodate up to 88,000 new households by 2035. As such, these GO As are good candidates for PDA designation. Six GOAs (in addition to the 52 GOAs described above) are identified as "Rural Town Centers" or "Rural Mixed-Use Corridors". While these areas could accommodate more than 1,900 new households by 2035, the primary role of these rural areas in the SCS would be to improve connectivity and provision of services for rural residents, rather than significant housing production. Rural Town Center and Rural Mixed-Used Corridor Place Types would need to be added as an option to the menu of Place Types identified in the MTC Station Area Planning manual, which jurisdictions currently use to identify an appropriate place type for their PDA. Nine additional GOAs are identified as "Employment Centers"; these areas could accommodate at least 7,000 new jobs. As with the rural GOAs, the primary role of these areas is not housing production, but rather a reduction in vehicle-miles-traveled through improvements in transit to and provision of services within these existing and future job centers. An Employment Center Place Type would need to be added as an option to the existing Place Types identified in the MTC Station Area Planning manual, which jurisdictions currently use to identify an appropriate place type for their PDA. Another fourteen GOAs have been identified that currently do not meet all of the PDA criteria. Some of these areas are very small (less than 20 acres in size); some are envisioned for low-density development or do not have sufficient transit service. However, these GOAs could accommodate a significant number of new housing units; the Initial Vision Scenario envisions approximately 28,000 new households in these GOAs by 2035. Staffwill need to make a formal determination on these areas based on additional information provided by the jurisdictions in the completed FDA applications to be submitted. PDAs will be encouraged to submit areas that are at least 100 acres in size or to explain why that is not feasible. Additionally, jurisdictions will need to demonstrate that new housing being planned for in the area will meet the minimum place type guidelines. Recommendations 1) Staff recommends that the place type menu available to PDAs be made more inclusive of employmentfocused and rural areas to advance sustainability concepts not previously covered by the PDA criteria. The Employment Center, Rural Town Center, and Rural Mixed Use Corridor Place Types would be added to the seven Place Types identified in MTC's Station Area Planning Manual that are currently being used to describe the existing PDAs. As funding may flow to these areas that are not specifically housing-focused, specific criteria for these areas need to be implemented to ensure that these areas further

2

the goals of the SCS, either through a reduction in YMT via improvements in connectivity and services or through supporting the economic vitality of the region. 2a) Specifically, staff suggest the following criteria be required for PDA designation of Rural Centers/Corridors: • The areas are existing town centers (not co-terminus with other urban communities) and/or are a along a rural corridor • The areas encompass or are being planned to include a mix of services to reduce vehicle miles traveled and/or are being planned for more housing with a mix of supportive services • The areas are being planned for more connectivity (multi-modal improvements, transit for employees and residents, etc.) • Areas have an urban growth boundary or other zoning policy in place, such as an urban service area, to limit sprawling development 2b) Staff suggest the following criteria be required for PDA designation of Employment Centers: • • The areas currently contain a certain threshold or density of jobs or have the plan capacity for a certain threshold of job growth (thresholds to be determined) The areas are currently served by transit or are being planned for transit service (fixed rail existing or planned, demonstrated high frequency bus (20 min headways during peak weekday commute hours), or shuttle service to fixed rail The areas are planned for a greater intensity and mix of uses (increased floor area ratios, reduced parking requirements, required Transportation Demand Management) The jurisdiction is providing sufficient housing near the employment center to merit resources supporting an exclusively employment development area (sufficient level of housing to be determined possibly related to jobs per household or employed resident from General Plans)

• •

3) Additionally, staff recommends that the definition of the PDA criteria for the area is planned or is planning for more housing, be clarified to state the following (addition in bold): Housing means the area has plans for a significant increase in housing units to a minimum density of the selected place type from the Station Area Planning Manual, including affordable units, which can also be a part of a mixed use development that provides other daily services, maximizes alternative modes of travel, and makes appropriate land use connections. This addition wiII ensure that areas proposed as PDAs incorporate housing at an appropriate level for their place type. 4) Staff recommends the following process and timeline for transitioning eligible Growth Opportunity Areas to Priority Development Areas: Milestone Staff presents process for formalizing GOAs to ABAG Regional Planning Committee Staff presents process for formalizing GOAs to MTC Planning Committee with the ABAG Adm inistrative Committee Jurisdictions submit completed PDA applications Staff review of applications received Deadline for submitting local resolutions in support of PDA Application Target Date October 5, 2011 October 14, 201 I

October 31,2011 November 2011 November 29,2011

3

Staff PDA recommendations presented to ABAG Regional Planning Committee with Planned/Potential status Staff PDA recommendations presented to ABAG Executive Board for final adoption with PlannedlPotential status

December 7,2011

January 19,2011

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