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Staff Recommendation

Deny the Planned Development because the project does not provide public benefits that are commensurate with the zoning exceptions requested.

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Per Article 16.7.A, the purpose of a Planned Development is to encourage and allow more creative and flexible development of land than is possible under district zoning regulations. It should only be applied to further those applications that provide compensating amenities and benefits to the City and neighborhood. Standards for a Planned Development are codified in subsequent sections of Article 16.7.

This staff report consists of four sections -- Project Description, Zoning Exceptions, Community Benefits, and Criteria for Approval of a Planned Development.

--PROJECT DESCRIPTION--
Heyoh Design + Development is proposing the construction of a 650-unit residential development called Cardinal Place on a 32.4-acre site comprised of 2805 Delrose Drive and 0 Riverside Road (Parcel IDs # 082MC02603 and 037). The dwelling unit composition would be an estimated 570 multifamily units in six, four-story apartment buildings located towards the center of the subject property with 80 townhouse units along the perimeter. There would be two entry/exit access points on Delrose Drive to the south, one entry/exit on Riverside Road to the east, and there would be a pedestrian-exclusive access point to Brooks Avenue to the north. The proposal includes recreational amenities within the development such as walking paths, a swimming pool, pickleball courts, natural and open play areas, and a community garden.

--ZONING EXCEPTIONS--
Per Article 16.7.D.2, exceptions from district regulations may be granted for planned developments if the exceptions:
a. Enhance the overall merit of the planned development.
b. Promote the objectives of both the City and the development.
c. Enhance the quality of the design of the structures and the site plan.
d. Will not cause excessive adverse impact on neighboring properties.
e. Are compatible with the adopted Knoxville-Knox County General Plan and its component parts, including adopted sector plans, corridor plans, and related documents.
f. Provide a public benefit to the City.

This development proposal includes 13 requested exceptions from the RN-4 (General Residential Neighborhood) and RN-1 (Single-Family Residential Neighborhood) zoning districts. Many of these requests would facilitate development more aligned with what would be allowed in the RN-5 (General Residential Neighborhood) or RN-6 (Multi-Family Residential Neighborhood) districts and is more intensive than the surrounding land uses. Planning does not support these exceptions due to the intensive nature of development they would provide in the context of the existing neighborhood.

The exception requests are as follows:

1) Request: Remove Special Use review for townhouse and/or multifamily residential development in the RN-4 zoning district (Exception from Article 4.2.B: Residential Neighborhoods Districts - Uses and Table 4-1: RN-4 Development Types)

2) Request: Remove the 40,000 square foot maximum lot area limit for multifamily developments in the RN-4 district (Exception from Table 4-2: Residential District Dimensional Standards).

3) Request: Increase the maximum height of multifamily buildings from 45 feet to 65 feet if the building is more than 80 feet from the property line in the RN-4 district (Exception from Table 4-2: Residential District Dimensional Standards).

4) Request: Change the RN-4 district minimum interior side setback standard from 12 feet or 15% of lot width, whichever is greater, to 12 feet plus 1-foot additional setback for each 2 feet of building height over 35 feet (Exception from Table 4-2: Residential District Dimensional Standards).

5) Request: Allow the use of aluminum, steel or metal sidings as a primary surface finish material (more than 15%) on any façade of a multifamily or townhouse building (Exception from Article 9.3.I Principal Use Standards for Multi-Family or Townhouse Dwellings).

6) Request: Allow the use of a townhouse and multifamily dwelling in the RN-1 district (Exception from Article 9: Uses and Table 9-1: Use Matrix).

7) Request: Permit a minimum lot area of 3,000 square feet per townhouse dwelling unit and 2,000 square feet per multi-family dwelling unit in the RN-1 district. (Exception from Table 4-2 Residential District Dimensional Standards)

8) Request: Permit a maximum building coverage of 50% for townhouse and multifamily development in the RN-1 district (Exception from Table 4-2 Residential District Dimensional Standards).

9) Request: Permit a maximum impervious surface coverage increase from 40% to 45% in the RN-1 district (Exception from Table 4-2 Residential District Dimensional Standards).*
* Staff believe this exception is incorrect and needs to be revised to reflect the impervious coverage shown on the site plan for the RN-1 zoned parcel. The request for an increase in impervious surface area aligns with the townhouse development, driveway and parking lot shown on the RN-1 lot.

10) Request: Permit a minimum front setback of 10 feet or the average of the blockface, whichever is less, in the RN-1 district (Exception from Table 4-2 Residential District Dimensional Standards).

11) Request: Permit a minimum interior side setback of 12 feet, plus 1-foot additional setback for each 2 feet of building height over 35 feet in the RN-1 district (Exception from Table 4-2 Residential District Dimensional Standards).

12) Request: Remove the minimum rear setback standard so that it is not applicable to the RN-1 zoned area of the subject property. (Exception from Table 4-2 Residential District Dimensional Standards)

13) Request: Permit more than one principal building per lot in an RN-1 district (Exception from Article 10.1.A General Development Requirements - Number of Structures on Lot and Article 9.1.D: General Use Regulations).

--COMMUNITY BENEFITS--
Per Article 16.7.D.3, an exception to zoning district regulations cannot be granted unless the applicant demonstrates a substantial benefit to the City. Design characteristics and amenities to be considered in this determination include, but are not limited to, the following:
A. Community gathering spaces and amenities including plazas, public art, formal gardens, places to congregate, and pedestrian and transit facilities.
B. Improvement of existing on-site and off-site infrastructure.
C. Use of sustainable design and architecture, such as green roofs, white roofs and other energy efficient design concepts, new building technologies, and approval of buildings and developments that meet established standards such as Leadership in Energy and Environmental Design (LEED), Energy Star, Earthcraft, etc.
D. Preservation of existing environmental features, including additional protections for steep slopes (15% or more slope).
E. Preservation of historic features and adaptive reuse of existing buildings.
F. New open space and recreational amenities such as recreational open space, including parks and playgrounds, natural water features and conservation areas, jogging trails and fitness courses, dog parks, skate parks, and similar recreational features.
G. Provision of public car and/or bike share facilities.
H. Affordable housing set-asides. Affordable housing must comply with the standards for affordability approved by the Knoxville Community Development Department.
I. Senior housing set-asides.

The proposal enumerates 22 benefits that are organized according to 3 categories: Community and Recreation; Environmental and Preservation; and Infrastructure, Access and Mobility. The benefits are summarized within these themes, and staff commentary on the purported benefits are described below.

1) Community and Recreation:
Proposal: The applicant lists the following amenities as recreational benefits intended for use by the general public.
- A playground
- A natural park
- A dog park
- A community garden
- Pickleball courts
- An art area
- Walking paths
They also present the use of individually sold townhouse units located around the perimeter of the development as a benefit because it provides a transition of residential intensity.

Staff Analysis:
While the project lists many benefits, the sum of these benefits is not equal to the scale of zoning exceptions requested. The Community and Recreation Benefits such as the parks, gardens and ball courts are not easily accessible to the general public. The amenities would not be viewable from any of the streets that access the property because they are so deeply embedded within the development. They appear more intended for the future residents of Cardinal Place, rather than the surrounding neighborhoods or the City at large. This is especially apparent with the amenities' adjacency to private benefits like the pool, volleyball court and community building, which are intended exclusively for Cardinal Place tenants.

The walking path throughout Cardinal Place provides a recreational amenity for its residents, but it does not improve connectivity to any place except within the development itself. The only pedestrian access point that connects to existing sidewalk infrastructure is the Brooks Avenue entrance, and it is located very far from the cluster of park spaces.

Even with the wayfinding signage illustrated on page 24 of the plan, the site design does not elicit a welcoming atmosphere for public use of these amenities. There is also no explanation provided on how these benefits would be physically or financially maintained for public use in perpetuity, though the applicant did verbally indicate that membership dues could be a means for maintaining the facilities. Should membership fees be charged, that could be more of a business enterprise than a public benefit.

Staff encouraged the applicant to coordinate with City staff on the park and recreational facilities to see if they aligned with recreational needs of the area and could be promoted by the City as public park space. A meeting did not occur.

The other benefits noted in this section pertain to the location and individual sale of townhouses. The development of townhouses does not merit further consideration as a public benefit. The use of a townhouse is already attainable through the RN-4 zoning district, and its location and sale does not meet the characteristics of a community benefit described in the Planned Development article.

2) Environment and Conservation:
Proposal: The applicant credits the site design with several public benefits:
- Conservation of green space
- Preservation of natural grade
- An increase in sustainability through building efficiency via more units per building.
- At least 75% of the building footprint will have white roofs, which reduces the energy required to cool buildings.
- Preserve approximately 4.27 acres of existing trees and rock outcroppings
- "Strategically" retain trees as feasible on approximately 2.38 acres.
- A 35-ft natural buffer between adjacent properties and the new development, though this is not shown as extending to the entire perimeter abutting other property.

Staff Analysis:
Many of the benefits described in this section rely on the argument that development under the RN-4 zoning district would necessarily be more impervious, auto-centric, discouraging of greenspace, and would result in less efficient residential buildings. This is based on the scenario provided that shows how much the land would need to be subdivided for the extent of multifamily development being pursued by the applicant. While the RN-4 district dimensional standards are not intended for the scale and massing of multifamily development proposed, that does not mean the zoning district hampers walkability, conservation or sustainable building design. To the contrary, the RN-4 district actively promotes greenspace with the pocket neighborhood design standards in Article 4.5. Additionally, the density of the residential buildings themselves should not be considered a public benefit as they represent more dwelling units and therefore more profit for the development.

While it is laudable that the developer intends to preserve 4.27 acres of the approximately 32-acre parcel, the development also proposes 258 more parking spaces than is required. This excessive parking design runs counter to the argument that the zoning exceptions are necessary to create a more environmentally conscientious development.

3) Infrastructure, Access and Mobility:
Proposal: The walking paths within the development are listed again in this category as a mobility benefit because the paths connect to existing sidewalk infrastructure on Brooks Avenue. The paths also connect to Delrose Drive and Riverside Road, which currently have no sidewalk infrastructure.
- Provision of vehicular parking spaces and covered bike parking for the park and recreational spaces
- Installation of a bike repair station
- Electronic Vehicle (EV) charging locations in five locations within the development
- A claim that stormwater infrastructure is improved compared to development under the RN-4 district standards.
- Widening of Riverside Road to 20' and construction of a sidewalk from the Riverside Road access to Brooks Avenue, subject to review by City of Knoxville Engineering. City Engineering has indicated they would require this widening to occur, due to the development's access on Riverside Road, and would prefer a sidewalk along the entirety of Riverside Road, considering its location within the Parental Responsibility Zone for Sarah Moore Greene Magnet Elementary School.
- 4% of the units being Type A accessible, because it is an increase from the 2% legally required.
- Creation of parking, signage and pedestrian access via the internal walking path to the Williams-Masterson Cemetery adjacent to the proposed development on Delrose Drive.

Staff Analysis:
This section of benefits references the cemetery again, due to a proposed walking path's adjacency to the site. The historic significance of this cemetery, which contains approximately 11 graves, is of unknown benefit to the City.

The walking paths internal to the development are referenced as a way to connect Brooks Avenue, Riverside Road and Delrose Drive, yet there is only existing sidewalk infrastructure on Brooks Avenue to connect to.

Parking spaces for community use of the park areas are listed as a benefit, though if these amenities were deemed to be public assets, parking would be required at permitting and would not be an added benefit.

Similarly with the Riverside Road widening and potential sidewalk addition, City Engineering would require that this substandard local street be widened to at least 20 feet to safely accommodate the additional traffic generated by this development.

With regards to a sidewalk, one could argue that Riverside Road's location within a Parental Responsibility Zone meets the essential nexus test for a sidewalk to be required, negating the depiction of these infrastructure improvements as a voluntary benefit.

As with the recreational amenities, the EV charging and bike repair stations are internal to the development and do not reflect apparent convenience or benefit to the broader community.

The proposed modest increase in accessible housing units by 2% is not substantial enough to be considered a commensurate benefit with the intensive zoning exceptions requested.

The last benefit listed in this section is that stormwater infrastructure would be improved, without further explanation provided. This property is entirely covered with mature forest in its current state, which offers numerous benefits, especially for stormwater control and quality. This proposal would convert the forest to a large multifamily development with two multi-acre detention ponds. The healthy forest where this property fronts Delrose Drive would be replaced by empty detention ponds, one of which would be so large it would require its own retaining wall along the street face. It is debatable whether stormwater infrastructure is improved by this development, and the RN-4 standards do not require worse stormwater infrastructure.

PURSUANT TO ARTICLE 16.7.E.3.e, THE RECOMMENDATION OF THE KNOXVILLE-KNOX COUNTY PLANNING COMMISSION AND DECISION OF THE CITY COUNCIL MUST MAKE A FINDING THAT THE FOLLOWING STANDARDS FOR A PLANNED DEVELOPMENT HAVE BEEN MET:

A. THE PROPOSED PLANNED DEVELOPMENT MEETS THE PURPOSE OF A PLANNED DEVELOPMENT (Article 16.7.A)
1. The first sentence of the Planned Development article states that exceptions from zoning regulations should only be applied to projects that provide compensating amenities and benefits to the City and neighborhood. It is staff's determination that the enumerated benefits are not commensurate with the zoning exceptions requested; therefore, this application does not meet the intent of a Planned Development.
2. Page 7 of the Cardinal Place plan provides a development scenario of what the site would look like if it was developed under RN-4 zoning. The scenario shown takes issue with the RN-4 district's maximum lot area of 40,000 square feet for multifamily development and demonstrates the amount of subdividing that would be required if it was developed with that use exclusively. This site plan is a misrepresentation of the wide range of housing forms and layouts that could be considered under this district, which include single-family and duplex dwellings, townhouses (which do not have a maximum lot area), and small-scale multifamily buildings. Pocket neighborhoods are defined as a clustered group of dwellings around a common courtyard stewarded by residents, and this is also a development form permitted in the RN-4 district. Contrary to the proposal's narrative, the RN-4 standards do not necessitate a more auto-centric development scenario as presented by the applicant. This scenario would not receive support from staff if it came through Special Use review, as required under RN-4 for multifamily developments of this scale. The RN-4 district is simply not intended for the intensity of multifamily development that is desired by the applicant.
3. It is noteworthy that most of the subject property was zoned RN-4 in 2024 in response to a rezoning request from RN-1 to RN-6 (Multifamily Residential Neighborhood). The basis for a less intensive rezoning in the report for case 1-I-24-RZ was that RN-4 zoning balanced housing need and residential amenities of the location with the predominantly single-family and forested context surrounding the property. This Planned Development application pursues RN-6 dimensions, including the maximum building height increase and interior side setback standards.

B. THE PROPOSED PLANNED DEVELOPMENT WILL NOT BE INJURIOUS TO THE USE AND ENJOYMENT OF OTHER PROPERTY IN THE VICINITY.
1. The RN-4 district was voted upon and approved for this property because it was deemed to be more appropriate than the requested RN-6 district. While the proposed unit count meets the minimum lot area standard for the RN-4 district, the scale and massing of the multifamily buildings is more akin to an RN-6 development. This intensity of development is not in harmony with the surrounding residential context, which is primarily comprised of larger, wooded single-family detached lots.

C. THE PROPOSED PLANNED DEVELOPMENT WILL NOT IMPEDE THE NORMAL AND ORDERLY DEVELOPMENT AND IMPROVEMENT OF SURROUNDING PROPERTY.
1. The intensity of a 650-unit residential development will likely have an accelerating effect on the development of surrounding properties, many of which are single-family lots or are undeveloped and forested.

D. THERE IS PROVISION FOR ADEQUATE UTILITIES AND INFRASTRUCTURE, DRAINAGE, OFF-STREET PARKING AND LOADING, PEDESTRIAN ACCESS, AND ALL OTHER NECESSARY FACILITIES
1. The appendix of the Cardinal Place plan set reflects adequate utility infrastructure for more residential intensity at this location.

E. THERE IS PROVISION FOR ADEQUATE VEHICULAR INGRESS AND EGRESS DESIGNED TO MINIMIZE TRAFFIC CONGESTION UPON PUBLIC STREETS. THE KNOXVILLE-KNOX COUNTY PLANNING COMMISSION AND/OR CITY COUNCIL MAY REQUIRE A TRAFFIC STUDY TO PROVIDE EVIDENCE THAT THE CIRCULATION SYSTEM IS ADEQUATE.
1. A traffic impact study was contracted by the applicant and estimates that the construction of 570 apartments and 80 townhouses will generate 5,076 vehicle trips at full build-out and occupancy. The study indicates that the Cardinal Place development will cause minimal delays and queues. A key recommendation includes widening the extent of Riverside Road to 20 feet of pavement, which City Engineering would require with a development of this scale. Another key recommendation for the developer to implement is a center turn lane on Delrose Drive for the entrance and exit access points there. A well-marked pedestrian crosswalk is recommended for the mid-block connection of the proposed walking path to the existing sidewalk on Brooks Avenue.

F. THE LOCATION AND ARRANGEMENT OF STRUCTURES, PARKING AREAS, WALKS, LANDSCAPE, LIGHTING, AND OTHER SITE DESIGN ELEMENTS AND THE USES ARE COMPATIBLE WITH THE SURROUNDING NEIGHBORHOOD AND ADJACENT LAND USES.
1. The development is far more intensive than the surrounding neighborhood and adjacent residential uses. It is a level of development that was deemed inappropriate when this property was rezoned to RN-4 instead of the requested RN-6 zoning district. The request for building heights as high as 65 feet is incompatible with the surrounding residential neighborhood.