First Test of the New Hotel Ordinance Comes Before BZA
The first test of the new accommodations overlay ordinance, adopted in 2019, came before the Board of Zoning Appeals –Zoning (BZA-Z) on January 21, 2020, with three new large hotels up for approval, including a large project at 82 Mary Street, the former Hughes Lumber site. The new hotel ordinance was the result of the months-long work of the Mayor’s Hotel Task Force, whose intent was to provide the Board with clear direction and additional tools for determining the appropriateness of accommodations uses in certain locations. HCF was an effective member of the Task Force, and the Foundation's lawsuit against the proposed hotel at 431 Meeting Street helped to galvanize the community around the issue of hotel overconcentration.Fortunately, the BZA denied the request, however during that meeting it became apparent that the ordinance needs further refinement and clarification and that the BZA members need more legal guidance on their authority - and responsibility - to regulate accommodations uses. HCF has advocated for clarification of the ordinance to address the BZA's role specific to the denial of accommodations uses and will do so again at the February 11th City Council meeting.The newly adopted accommodations overlay ordinance elevated “diversity of use” as a clear intent of the ordinance stating, “Outside of its residential districts, the City places a high value on the preservation and creation of a diverse mix of uses, containing a balance of uses comprised of retail uses, office uses, service industry uses, educational uses, cultural uses, and appropriate residential uses.” Further, the ordinance provides clear guidance on the location and appropriate size for certain districts and in which instances full-service hotels are required. This language in the new ordinance very clearly provides the BZA-Z members with the tools they need to properly regulate hotels, avoid a monoculture of use and to deny accommodations applications.The developers of 82 Mary Street had successfully been through the entitlement process to construct an office building on the site, even achieving a ninth floor as a bonus for architectural merit. HCF did not oppose construction of this new office building in the spirit of encouraging a diverse mix of uses and because the developer had allocated a sizable amount of open space to allow the Lowline linear park to continue through this block. In a surprise maneuver, the 82 Mary Street development team returned to the BZA-Z on January 21st seeking a change from office use to accommodations use with 225 hotel rooms. HCF is opposed to this change.This 82 Mary Street project is situated on a City block bounded by Mary, Meeting, Reid and King streets, wedged between two other full-service hotels under development. Should 82 Mary have been approved for accommodations, that would have created one super-block of hotels with a total of 575 rooms. This hardly represents a diverse mix of uses and is completely counter to the City’s new accommodations ordinance.The BZA-Z members debated this proposed change at length at their January 21st meeting. The Foundation staff were frustrated by the debate and the seeming lack of understanding by the BZA members and City staff on the intent and provisions of the revised ordinance. In short, the debate surrounding 82 Mary Street was a total distortion the ordinance.While that hotel ultimately was not approved, several BZA members expressed the sentiment that they still did not have the tools to truly regulate or even deny hotels, which is simply not true. At the least, a workshop to educate Board members, City staff and the general public on the ordinance is required. However, HCF argues has and testified before City Council, that it would be wise for City Council to go one step further and provide additional clarification in the ordinance on definition of “district,” the issue of diversity of uses and the ability to develop full-service hotels throughout the Peninsula and not just in the area bound by King, Meeting, Mary and Line streets.Meanwhile, the 82 Mary Street developers have appealed the BZA’s denial of their proposed accommodations use at that site. The appeal will be heard by the BZA on Feb 18, where HCF will again oppose the proposed accommodations use.Council members will take up the revised accommodations overlay ordinance to correct a “scrivener’s error” later this month, and HCF feels strongly that is the appropriate time to address any necessary clarifications. HCF is committed to working with Council to ensure that the amended ordinance empowers the BZA to regulate accommodations uses appropriately.Photo: The Board of Zoning Appeals recently denied a request from the developers of the 82 Mary Street project on the former Hughes Lumber site to change the usage from office to accommodations. The plans for the project as pictured above had received final BAR approval. HCF supported the BZA denial.