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Agenda Item - 2020-11-23 - Number 07.1 - Staff Report 11/12/20 w-Exh (LU 20-0040) STAFF REPORT CITY OF LAKE OSWEGO PLANNING AND BUILDING SERVICES DEPARTMENT APPLICANT FILE NO. City of Lake Oswego LU 20-0040, Ordinance 2856 LOCATION STAFF Citywide Scot Siegel, FAICP, LEED-AP, Planning and Building Services Director DATE OF REPORT PLANNING COMMISSION HEARING DATE November 12, 2020 November 23, 2020 I. APPLICANT'S REQUEST The City of Lake Oswego is proposing to amend Chapter 50 (Community Development Code) of the Lake Oswego Code for the purpose of 1) exempting awnings and canopies over outdoor dining areas from design review during COVID-19, and (2) replacing the 14-day restriction on temporary shelters with a longer timeframe for certain commercial uses during COVID-19. The draft code amendments, which would enact these changes, are included in Attachment 2 to Exhibit A-1. II. APPLICABLE REGULATIONS A. City of Lake Oswego Comprehensive Plan Land Use Planning Policies A-1, A-2, A-3, C-3, and D-1 Community Culture Policies 1, 2, 3, 4 and 5 Inspiring Spaces and Places Goal 1, Policies 1, 2, 8, and 9 Goal 2, Policies 4 (d and e) Economic Vitality Policy B-1 Planning Commission Public Hearing Page 1 of 15 LU 20-0040 11/23/20 B. City of Lake Oswego Community Development Code LOC 50.07.003.16.a Legislative Decisions Defined LOC 50.07.003.16.c Required Notice to DLCD LOC 50.07.003.16.d Planning Commission Recommendation Required LOC 50.07.003.16.e City Council Review and Decision C. Neighborhood Plans Evergreen Neighborhood Plan Land Use, Commercial: Policy 1 First Addition Neighbors and Forest Hills Neighborhood Plan Downtown Commercial District: Policy 5 Lake Forest Neighborhood Plan Economic Development and Commercial Lands: Policy 3 Lake Grove Neighborhood Plan Economic Development/Commercial Lands: Policies 5, 7, 9 Old Town Neighborhood Plan Commercial Land Uses: Policies 4 and 8 Waluga Neighborhood Plan Goal 2: Land Use Planning, Policy 2 Goal 9: Economic Development Policies 5, 7 and 9 III. INTRODUCTION / BACKGROUND INFORMATION This proposal is intended to provide regulatory relief under the Community Development Code to assist restaurants and other businesses in complying with COVID-19 physical distancing requirements, specifically by: • Exempting awnings and canopies over outdoor dining areas from design review during COVID-19, and • Replacing the 14-day restriction on temporary shelters in LOC with a longer timeframe for certain commercial uses during COVID-19. [Note: Due to the timeline for processing code amendments, the City is allowing businesses to obtain building permits for awnings and to use temporary shelters in accordance with the proposed code changes while the code amendments are in process. Prior to issuing building permits, staff will require the owner to sign a waiver on a form approved by the City Attorney releasing the City from all liability. The applicant assumes the risk of having an awning or Planning Commission Public Hearing Page 2 of 15 LU 20-0040 11/23/20 canopy that is not in compliance with the development code if the code changes are not ultimately adopted.] BACKGROUND The United States is now in its ninth month of the coronavirus. While businesses have been allowed to reopen under the State of Oregon's COVID-19 restrictions, physical distancing requirements have caused many to remain closed, and others are barely getting by. Restaurants in particular have been hit hard. According to the National Restaurant Association, as of last July, indoor dining had been suspended at nearly 90,000 restaurants across the country. ("With Indoor Dining Upended, Some Restaurants Call It Quits," Wall Street Journal, July 21, 2020.) That number likely has increased because many businesses that received Federal assistance or local grants have depleted those funds. In addition, many businesses that were able to negotiate breaks with their landlords are now being asked to pay rent because the landlords themselves are not able to make ends meet. The City's Economic Rapid Response team in partnership with the Lake Oswego Chamber of Commerce has conducted outreach to local restaurant owners to identify barriers to business survival during the pandemic, and potential solutions. Three local restaurant owners have approached the City to date asking for a more expeditious permitting process for installing awnings over their outdoor seating areas. According to these businesses, awnings are a more economical way to provide shelter than seasonal dining enclosures, which are a type of prefabricated, removable building addition that the City recently authorized with Ordinance 2851. Assuming that awning-covered seating areas can be outfitted with code-compliant sources of heating and windscreens, they could provide critical seating capacity this fall and winter for local restaurants if exempted from the City's design review process. The City has also received inquiries from business owners who want to place tents for dining or customer queueing (due to limited building occupancy) in front of their businesses for longer than the code allows. The development code limits use of temporary commercial shelters such as tents to 14-days, primarily to ensure that adequate parking is maintained and that permanent structures go through design review. Under either scenario, permanent awnings or tents, the shelters would still have to meet applicable building and fire and life safety code requirements, including but not limited to regulation of heating sources, cooking/open flames, spacing between structures, and spacing from vehicles. The City Council recently adopted Ordinance 2851 allowing Seasonal Outdoor Dining Enclosures (October through April) through a ministerial or minor development permit process (not limited to the COVID-19 pandemic). The City has also added 15-minute on-street parking next to some First Street restaurants to help facilitate customers arriving for "pickup" orders. Additionally, the City's Economic Rapid Response team in partnership with the Lake Oswego Chamber of Commerce has conducted outreach to local restaurant owners to identify barriers to business Planning Commission Public Hearing Page 3 of 15 LU 20-0040 11/23/20 survival during the pandemic, and potential solutions. The City has also received requests for regulatory relief directly from local businesses as discussed above. DISCUSSION Awnings and Canopies A canopy is a "nonremovable roof-like structure attached to a building. (LOC 50.10.003.2) The proposal refers to canopies and "awnings", which are not defined but are commonly known as roof-like cover extending over or in front of a place (as over the deck or in front of a door or window) as a shelter". (Merriam-Webster.com). Awnings on commercial buildings are illustrated in Appendix A, Lake Oswego Style (LOC 50.11.00, Figures 4 and 5). The City's development code requires design review for awnings and similar building attachments through a minor development process. This is a discretionary land use process with public noticing and therefore can take months to complete. Although smaller projects like awnings and canopies can be approved by staff, those decisions can be appealed to the Development Review Commission. There is already precedent for exempting awnings from design review. Community Development Code Section 50.07.003.12.a.viii exempts awnings that have received prior City approval through the Downtown Facade Improvement Program, a grant program that is currently inactive. Exempting awnings and canopies for restaurant seating areas would save staff time and reduce costs for local business as there would be no development review fees other than for building permits. Temporary Shelters The City has also received inquiries from business owners who want to use tents or other temporary shelters to add dining space and/or customer queueing areas for their businesses due to physical distancing requirements and limited building occupancy. LOC 50.03.005.4.a limits the use of temporary shelters such as tents to 14-days, primarily to maintain adequate parking and to ensure that permanent structures go through design review. Proposed Code Amendments The following proposals would exempt canopies and awnings from design review when erected over an existing restaurant seating area and extend the time that tents and similar temporary shelters may be used for restaurant seating during the pandemic. These shelters would still have to meet applicable building and fire and life safety code requirements, including but not limited to regulation of heating sources, cooking/open flames, spacing between structures, and spacing from vehicles. Planning Commission Public Hearing Page 4 of 15 LU 20-0040 11/23/20 IV. NOTICE OF APPLICATION A. Newspaper Notice On November 11, 2020, public notice of the proposed CDC text amendments and Planning Commission public hearing was published in the Lake Oswego Review. B. DLCD and Metro Notices Pursuant to ORS 197.610 and LOC 50.003.07.16.c, staff has provided notice of the proposed CDC text amendments to the Oregon Department of Land Conservation and Development (DLCD). Staff notified Metro as required by Metro Code 3.07.820(a). V. COMPLIANCE WITH APPROVAL CRITERIA A. City of Lake Oswego Comprehensive Plan Staff has identified the following Comprehensive Plan Policies applicable to this proposal: Land Use Planning— Development (Community Development Code), Design Standards and Guidelines, and Land Use Administration Policies A-1, A-2, A-3, C-3 and D-1. Development (Community Development Code! Policy A-1: Maintain land use regulations and standards to: // b. Promote compatibility between development and existing and desired neighborhood character; // g. Promote architectural and site design quality. Policy A-2: Ensure that land use regulations have sufficient flexibility to allow developers and the City to propose measures to: // b. Preserve open space and natural resources; and, c. Avoid negative impacts on surrounding properties. Policy A-3: Ensure high-quality building and site design through the application of clear and objective design standards for residential development, and design review; utilize the development review process for commercial, industrial, and institutional development to ensure high-quality building and site design and overall appearance. Planning Commission Public Hearing Page 5 of 15 LU 20-0040 11/23/20 Design Standards and Guidelines Policy C-3: Ensure through development and design standards that both public and private developments enhance the aesthetic quality of the community. Findings: With respect to Policies A-1, A-2, A-3, and C-3, Staff finds that the proposed amendments providing flexibility for commercial uses to erect tents during COVID-19 may have negative impacts on design quality but those impacts will be temporary, as the tents must be removed by May 31, 2021, and the impact of tents on neighborhoods will be mitigated by requiring minimum setbacks. Staff finds that the proposed amendments exempting restaurant awnings and canopies from design review may have negative impacts on design quality and neighborhood character, but these impacts will be mitigated by requiring minimum setbacks from residential areas and by limiting the width of street-facing awnings/canopies to not more than 30% of the width of the street-facing building facade that they are attached to. In addition, the aforementioned impacts are outweighed by the necessity to provide regulatory relief to restaurants and other businesses in complying with COVID-19 physical distancing requirements, consistent with Economic Vitality Policy B-1. Land Use Administration Policy D-1: Coordinate the development and amendment of City plans and actions related to land use with other affected agencies, including county, state, Metro, federal agency, and special districts. Findings: Staff has provided the required notification to State and Metro jurisdictions consistent with this policy. Federal agencies and special districts are not uniquely affected by these amendments. Conclusion: The proposal is consistent with these Land Use Planning policies. Community Culture Policies 1, 2, 3 and 5. Policy 1: Provide opportunities for citizen participation in preparing and revising local land use plans and ordinances. Policy 2: Provide citizen involvement opportunities that are appropriate to the scale of a given planning effort. Large area plans, affecting a large portion of community residents and groups require citizen involvement opportunities of a broader scope than that required for more limited land use decisions. Policy 3: Utilize City boards and commissions, neighborhood associations, and other community groups to ensure a diverse and geographically broad range of citizen input in land use issues. Planning Commission Public Hearing Page 6 of 15 LU 20-0040 11/23/20 Policy 5: Seek citizen input through service organizations, interest groups and individuals, as well as through neighborhood organizations. Findings: The Community Development Code, which implements the Comprehensive Plan, contains requirements for a citizen involvement program that clearly defines the procedures by which the general public will be notified in the on- going legislative land use planning process and enables citizens to comprehend the issues and become involved in decision-making. The proposed code amendments were identified based on input from the community, including the Lake Oswego Chamber of Commerce, individual business owners, and staff. The City Council also received input at its meeting on October 20, 2020 when it directed staff to initiate the code amendments. All required notification measures and opportunities for input as specified in the Code were provided during this process, including noticing to all Neighborhood Associations and business organizations. Public hearings will be held before the Planning Commission and City Council. Therefore, the process followed for these amendments complies with the above cited Comprehensive Plan policies. Conclusion: The City has provided adequate opportunities for public participation consistent with the applicable Comprehensive Plan policies. Inspiring Spaces and Places Goal 1, Policies 1, 2 and 9 Goal 1: Policy 1:Adopt implementation measures and guidelines that ensure: // b. New development in mixed-use, commercial and employment areas: i. Promotes a safe and attractive pedestrian environment; ii. Reflects high-quality aesthetics, considering size, scale and bulk, color, materials, architectural style and detailing, and landscaping; and iii. Includes buffering and screening to protect residential uses and neighborhoods. Policy 2:Adopt and maintain design standards and provide incentives that encourage exceptional or high quality design. Policy 9: Preserve the visual attractiveness of the community by limiting adverse visual impacts to the City's public spaces and streetscape. Planning Commission Public Hearing Page 7 of 15 LU 20-0040 11/23/20 Findings: With respect to Policies 1, 2 and 9, Staff finds that the proposed amendments providing flexibility for commercial uses to erect tents during COVID- 19 prioritize economic development and building functionality and safety over aesthetics. Any detrimental effect on the visual quality of the community due to tents will be temporary, as these shelters must be removed by May 31, 2021. The aesthetic impact of tents on neighborhoods will also be mitigated by requiring minimum setbacks. Staff finds that the proposed amendments exempting restaurant awnings and canopies from design review may have negative impacts on aesthetics and the design quality of public spaces and the streetscape, but these impacts will be mitigated by requiring minimum setbacks from residential areas and by limiting the width of street-facing awnings/canopies to not more than 30% of the width of the street-facing building facade that they are attached to. Safety is prioritized by requiring compliance with fire and life safety code requirements. Conclusion: The proposal is consistent with these Inspiring Spaces and Places policies. The aforementioned impacts are outweighed by the necessity to provide regulatory relief to restaurants and other businesses in complying with COVID-19 distancing requirements, consistent with Economic Vitality Policy B-1. Economic Vitality—Employment Zones Policy B-1 Policy B-1: Provide opportunities for redevelopment and development in employment zones while: // b. Addressing impacts such as noise, traffic, and visual aesthetics, on adjacent land uses through site and building design; c. Complying with design and aesthetic standards to promote compatibility with Lake Oswego's community character; d. Preserving natural resources and providing required open space; // Findings: Staff finds that the proposed amendments will not allow additional traffic or other impacts above that which is already generated from existing commercial uses. Any new awnings constructed because of the code change will be in areas where outdoor dining already exists and will be utilized during periods when indoor dining capacity is restricted by the Governor's Executive Orders related to the COVID-19 pandemic. As discussed under the Land Use Planning and Inspiring Spaces and Places policies, the proposed amendments balance the above economic development objective (in this case, business retention) with aesthetics and community character. Conclusion: The proposal is consistent with the Economic Vitality policies. Planning Commission Public Hearing Page 8 of 15 LU 20-0040 11/23/20 Community Health and Public Safety Policy 1 Sound Quality Policy 1: Preserve and maintain the quiet character of residential neighborhoods, public open spaces, natural parks and parks with natural elements through zoning regulations and development standards. Findings: Staff finds that the proposed amendments will not allow additional levels of noise-producing activity above that which is already produced by existing commercial uses. Any new noise generated from tents will be temporary and setback from any adjacent residential areas. Any new awnings constructed because of the code change will be in areas where outdoor dining already exists or is permitted to occur. Conclusion: The proposal is consistent with Sound Quality policy. B. Lake Oswego Community Development Code Procedural Requirements LOC 50.07.003.16.a Legislative Decisions Defined LOC 50.07.003.16.c Required Notice to DLCD LOC 50.07.003.16.d Planning Commission Recommendation Required LOC 50.07.003.16.e City Council Review and Decision Response: The Community Development Code 50.07.003.16.a defines "legislative decisions" to include amendments to the CDC and to Comprehensive Plan policies. Public hearings by the Planning Commission for recommendations to the City Council for "legislative decisions" are required to have at least 10 days prior published notice, per LOC 50.07.003.16.d.iii and 50.07.003.3.c. Notice is defined as being published in a newspaper of general circulation in the City of Lake Oswego at least ten days in advance of the hearing, and mailed at least ten days in advance to the Commission for Citizen Involvement and to all recognized neighborhood associations. The notice shall include: i. The time, date, and place of the public hearing; ii. A brief description of the proposed legislative amendment; and iii. A phone number for obtaining additional information. The legislative hearing notice was sent to the Commission for Citizen Involvement and to all recognized neighborhood associations on November 4, 2020. The hearing notice has been published in the Lake Oswego Review newspaper on November 11, 2020. Legislative notice was mailed to DLCD and Metro per LOC requirements on November 4, 2020. Conclusion:The City notified DLCD and Metro of the proposed action 35 days before the initial evidentiary hearing. The City notified the Commission for Citizen Planning Commission Public Hearing Page 9 of 15 LU 20-0040 11/23/20 Involvement and to all recognized neighborhood associations more than 20 days in advance of the hearing. These criteria are met. The CDC procedural requirements, including public notice requirements for the public hearing, are met. C. COMPLIANCE WITH NEIGHBORHOOD PLANS EVERGREEN NEIGHBORHOOD PLAN Land Use, Commercial: Policy 1 Policy 1: Maintain a balance of commercial uses in the Downtown Business District between those that provide for the frequently reoccurring needs of nearby residents and those that cater to wider community needs. Findings: The proposed amendments would establish standards and allow temporary shelters for longer than 14 days, and exempt some awnings and canopies from design review, allowing those businesses to serve the needs of nearby residents and the wider community during COVID-19. FIRST ADDITION NEIGHBORS AND FOREST HILLS NEIGHBORHOOD PLAN Goal: Downtown Commercial District: Policy 5 Policy 5: Retain the small village atmosphere of shopping district and support the LORA Design Guidelines to encourage a vital and attractive downtown. Findings: Staff finds that the proposed amendments providing flexibility for commercial uses to erect tents during COVID-19 prioritize economic development and building functionality and safety over aesthetics. Any detrimental effect on the village character of the shopping district due to tents will be temporary, as these shelters must be removed by May 31, 2021. The aesthetic impact of tents on neighborhoods will also be mitigated by requiring minimum setbacks. Staff finds that the proposed amendments exempting restaurant awnings and canopies from design review may have negative impacts on aesthetics and the design quality of public spaces and the streetscape, but these impacts will be mitigated by requiring minimum setbacks from residential areas and by limiting the width of street-facing awnings/canopies to not more than 30% of the width of the street-facing building facade that they are attached to. In addition, any impacts on village character are outweighed by the necessity to provide regulatory relief to restaurants and other businesses in complying with COVID-19 physical distancing requirements, consistent with Economic Vitality Policy B-1. Planning Commission Public Hearing Page 10 of 15 LU 20-0040 11/23/20 LAKE FOREST NEIGHBORHOOD PLAN Goal 9: Policy 3, Economic Development and Commercial Lands Policy 3: Ensure that land use regulations for commercial and multi family development foster compatibility with surrounding residential neighborhoods through measures such as: a. Outdoor lighting controls b. Separating noise sources from adjacent noise sensitive uses; c. Containment and screening of trash collection areas; d. Utilizing setbacks, buffering and screening to mitigate the visual and operational impacts of outdoor storage areas and other outdoor activities, and; e. Enforcement of prior conditions of development approval per LOC 48.02.055- 48.02.075 Findings: Staff finds that the proposed amendments providing flexibility for commercial uses to erect tents during COVID-19 prioritize economic development and building functionality and safety over aesthetics. Any detrimental visual or aesthetic impact due to tents will be temporary, as these shelters must be removed by May 31, 2021. The aesthetic impact of tents on neighborhoods will also be mitigated by requiring minimum setbacks. Staff finds that the proposed amendments exempting restaurant awnings and canopies from design review may have negative impacts on aesthetics and the design quality of public spaces and the streetscape, but these impacts will be mitigated by requiring minimum setbacks from residential areas and by limiting the width of street-facing awnings/canopies to not more than 30% of the width of the street-facing building façade that they are attached to. In addition, any aesthetic impacts due to these amendments are outweighed by the necessity to provide regulatory relief to restaurants and other businesses in complying with COVID-19 physical distancing requirements, consistent with Economic Vitality Policy B-1. Traffic and noise are not expected to be any greater than already exists for restaurants that opt to provide a covered outdoor dining area. LAKE GROVE NEIGHBORHOOD PLAN Goal 9: Policies 5, 7, 9 Economic Development/Commercial Lands Policy 5: Ensure the design quality of future development in the Lake Grove Commercial District by enacting land use and design regulations which enhance the district's existing built environment and positive design qualities and which also Planning Commission Public Hearing Page 11 of 15 LU 20-0040 11/23/20 provide the opportunity for a variety of architectural design, and building types and sizes, including variations in setbacks, height, bulk and scale, which are consistent with these characteristics. Policy 7: New commercial and multi family development shall provide landscape buffering and screening between differing land uses to enhance aesthetic quality and mitigate visual and operational impacts. Policy 9: Ensure that land use regulations foster compatibility between new and existing commercial and multi family development and with surrounding residential neighborhoods through measures such as: i. Outdoor lighting controls; ii. Separating noise sources from adjacent noise sensitive uses; iii. Containment and screening of trash collection areas; iv. Utilizing setbacks, buffering and screening to mitigate the visual and operational impacts of outdoor storage areas and other outdoor activities; v. Enforcement of prior conditions of development approval per LOC 48.02.055— 48.02.075 Findings: Staff finds that the proposed amendments providing flexibility for commercial uses to erect tents during COVID-19 prioritize economic development and building functionality and safety over aesthetics. Any detrimental visual or aesthetic impact due to tents will be temporary, as these shelters must be removed by May 31, 2021. The aesthetic impact of tents on neighborhoods will also be mitigated by requiring minimum setbacks. Staff finds that the proposed amendments exempting restaurant awnings and canopies from design review may have negative impacts on aesthetics and the design quality of public spaces and the streetscape, but these impacts will be mitigated by requiring minimum setbacks from residential areas and by limiting the width of street-facing awnings/canopies to not more than 30% of the width of the street-facing building facade that they are attached to. In addition, any aesthetic impacts due to these amendments are outweighed by the necessity to provide regulatory relief to restaurants and other businesses in complying with COVID-19 physical distancing requirements, consistent with Economic Vitality Policy B-1. Traffic and noise are not expected to be any greater than already exists for restaurants that opt to provide a covered outdoor dining area. Planning Commission Public Hearing Page 12 of 15 LU 20-0040 11/23/20 OLD TOWN NEIGHBORHOOD PLAN Commercial Land Uses: Policies 4 and 8 Policy 4: Commercial Land Uses a. Any development in the adjacent EC zone shall provide a landscaped buffer to function as a visual and physical barrier between dissimilar uses in the EC and DD zones. Policy 8: Development Review Consideration shall be given to the relationships between new construction and adjacent land uses as well as to how the proposed development incorporates the desirable "small village"or "historic town"appearance of Old Town as illustrated in its pitched roofs, wood and masonry construction materials, and building proportions and massing typical of the Vernacular, Craftsman and Cape Cod styles. Findings: Staff finds that the proposed amendments providing flexibility for commercial uses to erect tents during COVID-19 prioritize economic development and building functionality and safety over aesthetics. Any detrimental visual or aesthetic impact due to tents will be temporary, as these shelters must be removed by May 31, 2021. The aesthetic impact of tents on neighborhoods will also be mitigated by requiring minimum setbacks. Staff finds that the proposed amendments exempting restaurant awnings and canopies from design review may have negative impacts on aesthetics and the design quality of public spaces and the streetscape, but these impacts will be mitigated by requiring minimum setbacks from residential areas and by limiting the width of street-facing awnings/canopies to not more than 30% of the width of the street-facing building façade that they are attached to. In addition, any aesthetic impacts due to these amendments are outweighed by the necessity to provide regulatory relief to restaurants and other businesses in complying with COVID-19 physical distancing requirements, consistent with Economic Vitality Policy B-1. Traffic and noise are not expected to be any greater than already exists for restaurants that opt to provide a covered outdoor dining area. Planning Commission Public Hearing Page 13 of 15 LU 20-0040 11/23/20 WALUGA NEIGHBORHOOD PLAN Goal 2: Policy 2, Land Use Planning Goal 9: Policies 5, 7 and 9 Economic Development Goal 2: Land Use Planning—Policy 2 Policy 2: As applicable by City Code, ensure that the architectural, site design and landscape character of new development and substantial remodel of structures within the Waluga Neighborhood is compatible with the character of the existing neighborhood. Goal 9: Economic Development—Policies 5, 7& 9 Policy 5: Ensure the design quality of future development in the Lake Grove Business District*by enacting land use and design regulations which enhance the district's existing built environment and positive design qualities and which also provide the opportunity for a variety of architectural design, and building types and sizes, including variations in setbacks, height, bulk and scale, which are consistent with these characteristics. Policy 7: New commercial and multi family development shall provide landscape buffering and screening between differing land uses to enhance aesthetic quality and mitigate visual and operational impacts, per existing City codes and regulations. Policy 9: Ensure that land use regulations foster compatibility between new and existing commercial and multi family development and with surrounding residential neighborhoods through measures such as: a. Outdoor lighting controls; b. Separating noise sources from adjacent noise sensitive uses; c. Containment and screening of trash collection areas; d. Utilizing setbacks, buffering and screening to mitigate the visual and operational impacts of outdoor storage areas and other outdoor activities; and e. Enforcement of prior conditions of development approval per the Community Development Code. Findings: Staff finds that the proposed amendments providing flexibility for commercial uses to erect tents during COVID-19 prioritize economic development and building functionality and safety over aesthetics. Any detrimental visual or aesthetic impact due to tents will be temporary, as these shelters must be removed by May 31, 2021. The aesthetic impact of tents on neighborhoods will also be Planning Commission Public Hearing Page 14 of 15 LU 20-0040 11/23/20 mitigated by requiring minimum setbacks. Staff finds that the proposed amendments exempting restaurant awnings and canopies from design review may have negative impacts on aesthetics and the design quality of public spaces and the streetscape, but these impacts will be mitigated by requiring minimum setbacks from residential areas and by limiting the width of street-facing awnings/canopies to not more than 30% of the width of the street-facing building facade that they are attached to. In addition, any aesthetic impacts due to these amendments are outweighed by the necessity to provide regulatory relief to restaurants and other businesses in complying with COVID-19 physical distancing requirements, consistent with Economic Vitality Policy B-1. Traffic and noise are not expected to be any greater than already exists for restaurants that opt to provide a covered outdoor dining area. VI. RECOMMENDATION Based on the information presented in this report, staff recommends approval of the proposed code amendments. EXHIBITS A. Draft Ordinance A-1 Ordinance 2856 (Reserved for City Council- not included) Attachment 1: Reserved for City Council Findings (not included) Attachment 2: Community Development Code Amendments, draft 11/10/20 B. Findings, Conclusions and Order [No current exhibits; reserved for hearing use] C. Minutes [No current exhibits; reserved for hearing use] D. Staff Reports E. Graphics/Plans [No current exhibits; reserved for hearing use] F. Written Materials [No current exhibits; reserved for hearing use] G. Letters G-1 Letter from Rob Moneyhan, 10/22/20 Staff reports and public meeting materials that were prepared for these code amendments can be found by visiting the project web page for LU 20-0019. Use the link below to visit the City's "Project" page. https://www.ci.oswego.or.us/all-proiects (Under "Search" enter LU 20-0040, then press "Enter") Planning Commission Public Hearing Page 15 of 15 LU 20-0040 11/23/20 DRAFT: 11/10/2020 The following code changes are shown with new text in bold and double-underlined. The text in gray highlighting is modified from the original concept presented to the City Council on November 3, 2020. LOC 50.07.003.12 12. EXEMPT DEVELOPMENT a. Classification Exempt developments include: i. Landscaping or landscape alterations, unless: // ii. Normal or emergency repair or maintenance of public or private buildings, structures, or utilities. iii. Construction of a structure that does not require a building permit. iv. Interior remodeling which does not change a structure's occupancy classification or change the structure to a use that does not qualify as a permitted use in the zone. v. Exterior remodeling of a structure that does not require a building permit. vi. Street vacations. vii. Temporary structures and uses listed in LOC 50.03.00! or which are for relief of victims of disaster or in an emergency. viii. Where an awning is the only change to the facade of an existing building, and the awning is funded or partially funded utilizing a financial incentive grant, provided by or obtained through the authority of the City of Lake Oswego or LORA. "Financial incentive" includes a grant, fee waiver, revolving loan, tax abatement, property exchange, or similar financial incentive provided by or secured through the City or LORA. ix. Where an awning or canopy covering an outdoor seating area of a restaurant is the only change to the facade of a building. and the canopy/awning is constructed during October 21, 2020 through May 31, 2021 (COVID-19 exemption window). In such instance, it shall cover no more than 30 percent of the width of any street-facing facade and shall be set back no less than 20 feet from any residential zone. Anv li hg ting under the awnina/canoav shall be directed downward and shielded or screened to prevent lighting off-premise areas Comment: Awnings are building attachments that are reviewed through a ministerial or minor development ("design review") process for compliance with the development code—except as exempted above. Building permits are required. Electrical, plumbing, and mechanical permits may also be required. LU 20-0040 ATTACHMENT 2 (ORDINANCE 2856)/PAGE 1 OF 2 DRAFT: 11/10/2020 b. Development Review i. No development permit pursuant to this Code is required for exempt development. Note: Projects that are exempt from development permit review under this chapter may be subject to requirements in other chapters of Lake Oswego Code. LOC 50.03.005.4 Temporary Structures and Uses 4. IN COMMERCIAL AND INDUSTRIAL ZONES The following temporary uses are permitted in commercial and industrial zones. Business licenses are required for all temporary commercial activities. a. A tent, trailer or other portable structure for sales, promotional or educational events; such use shall not exceed two consecutive weeks and a total of 14 days (any portion of a day, between 12:00 a.m. and ending at 11:59 p.m., shall be counted as a day) in any six-month period. b. Seasonal retail sales as detailed below: i. Christmas tree sales from November 26 to December 31. H. Outdoor restaurant uses in conjunction with an existing indoor year-round restaurant. No additional parking is required for the outdoor use. iii. "Pushcart" vendors in the EC and GC zones. Food vendors will have all required Health Department licenses and certificates. Such uses limited to food and flowers. c. In the GC and EC zones, one sidewalk sale, not exceeding three days during each calendar quarter, when located in area abutting the seller's permanent business. dL A tent or similar temporary structure for restaurant seating or customer waiting. pickup or drop-off area, but excluding merchandise display, sales (other than food and drink), and promotional and educational events; such use shall be set back no less than 10 feet from any residential zone, except where a larger setback is required for compliance with fire and life safety codes, and is limited to October 21 through May 31 during years when Clackamas County is subject to state-mandated COVID-19 physical distancing restrictions. Any lighting within the tent of similar temporary structure shall be directed downward and shielded or screened to prevent lighting off-premise areas Comment: The intent of above language is to allow recurrence of temporary structures for as long as physical distancing requirements exist, hopefully not beyond the 2020-21 season. ### LU 20-0040 ATTACHMENT 2 (ORDINANCE 2856)/PAGE 2 OF 2 ROB MONEYHAN 865 ELUS AVE LAKE OSWEGO, OR 97034 IIII October 22, 2020 City of Lake Oswego Attn: Scot Siegel, Planning and Building Services Director 380 A Avenue Lake Oswego, OR 97034 ssiegel@lakeoswego.citv CC: kstudebaker@ci.osweeo.or.us tkohlhoff@lakeosweeo.city ilamotte@lakeosweeo.city imanz@ci.osweeo.or.us dneuven@ci.osweeo.or.us soneill@ci.oswego.or.us iwendland@ci.oswego.or.us Hello Scot- I am writing in follow up to the City Council meeting from 10/20 and your discussion with the Council. I'd like to clarify some of the points I made during the Citizen Comment period in hopes to offer some productive citizen input as you move ahead with staff in preparing an ordinance for review by the Planning Commission. Given the change in seasons and the lack of progress in battling the pandemic, COVID-19 regulatory relief and code flexibility will be extremely critical in helping our community restaurants operators adapt and survive. Specific to my family's property at 506 A Avenue and Tenants/Operators facing similar restrictions: 1) I would like to request that setback requirements be reduced to match the setback requirement for surface parking when an awning, canopy, or tent be adjacent to a residential lot. Currently,the setback requirement at Duke'for such a structure is 25'. Given the small size of the lot and walkways for access,this leaves little area to provide spacing and cover. The setback requirement for surface parking is only 10'. 2) In addition to "exempting awnings and canopies over outdoor dining areas from design review during COVID-19", I would like to request that Tenants/Operators be able to move ahead with these improvements directly with the city without property owners having to reopen previously approved "land use applications". The land use is not changing and that process is very time consuming. The world has changed, and restaurants need flexibility to provide spacing and cover quickly. LU 20-0040 EXHIBIT G-1/PAGE 1 OF 2 Specific to all Restaurant Tenants/Operators: 3) I would like to suggest that flexibility be given to restaurants to utilize public parking adjacent to their operations for outdoor seating and covered areas. This has been done successfully in Portland and other cities. Sidewalk seating in many cases still puts patrons in close contact with pedestrians passing by. If seating can be moved to adjacent parking areas, many restaurants could both expand seating and provide safer spacing. Gemini, Firehouse Tavern,Tucci, Baldwins, and Casa Pequena Taqueria to name a few would likely benefit greatly with flexibility. There are photos of examples in Ordinance 2851, but I did not see that it was clear that adjacent parking could be used within the Ordinance. Restaurant patrons will remain well below normal during COVID-19,which correlates to less demand on parking. 4) With regards to the legal note suggesting applicants sign a waiver to "assume the risk of having an awning or canopy that is not in compliance with the development code". I suggest allowing applicants a reasonable amount of time to remove non-compliant structures without penalty. Tents and canopies that meet building and fire codes are not inexpensive. For example, some even smaller tents cost$2,000 per month. That is roughly an additional 30% increase in occupancy costs for many of the 1,800-2,000 SF restaurants in town. With the additional business costs to operate during COVID-19,the applicants need some time to realize a financial return from the investments. Additionally, contractors are so busy right now, it will take some lead time to have structures removed. I suggest 90 days from the end of the "Covid Relief" effort to remove the non-compliant structures. 5) I agree with the May 315t timeline that has been suggested in the Staff Recommendation. From what we have learned and experienced to date,that appears to be a fair and realistic timeline for the initial phase of the ordinance. Lastly,the code issue you referenced at our property is being resolved quickly. The Tenant made improvements they did not realize required a permit. All of those improvements are being removed. Please do not hesitate to contact me with any questions if I can be of help. I hope the ordinance moves ahead and is adopted quickly. Sincerely,/ Red 7/10Ptee CC: Mayor Kent Studebaker Councilor Theresa Kohlhoff Councilor John LaMotte Councilor Jackie Manz Councilor Daniel Nguyen Councilor Skip O'Neill Councilor John Wendland LU 20-0040 EXHIBIT G-1/PAGE 2 OF 2