The following two items respond to:

Code amendment cases C20-2024-017 PDA2 and C20-2024-022 Density Bonus for Commercial Highway & Industrial Zones are associated cases which will appear on the same Public Hearing agendas. 

Background

Initiated by City Council Resolution No. 20240718-091. 

Planned Development Areas (PDA) were first added to the Land Development Code in 1966 at the City Council Regular Meeting (19660616, Minutes (austintexas.gov)) for the following purpose:  

“to provide suitable and conducive environment for the development of modern administrative facilities, research establishments, specialized manufacturing plants, and similar enterprises plus retail and other customer service facilities… and not intrude upon nearby existing or future residential and associated development. (21)” 

The use of a PDA allows for modifications to site development standards, including maximum height and floor-to-area ratio (FAR), as well as modifications to allowed and prohibited uses within a zoning district. 

On May 23rd, 2023, via Resolution No. 20230323-085, the City Council initiated a Code amendment to City Code 25-2-582 (Commercial Highway (CH) District Regulations) to eliminate all the regulations found in 25-2-582(C) and clarify that a zoning ordinance establishing a CH-PDA controls over any conflicting CH regulations. This allowed for wider use of PDA zoning for Commercial Highway (CH) and Light Industrial (LI) districts.  

Based on staff analysis of PDA zoning ordinances over the last ten years, there has been an increase in the number of cases where residential uses have been permitted - 

45 zoning ordinances have permitted residential uses, with 31 of those cases since 2020. 

On July 18th, 2024, via Resolution No. 20240718-091, the City Council initiated amendments to Title 25 (Land Development) to create a new density bonus program that will apply to the PDA zoning district and allow increased height for residential uses in exchange for income-restricted dwelling units or a fee-in-lieu. 

Summary of Proposed Changes

The proposed code amendments will create both a 1) New Planned Development Area 2 (PDA2) combining district and a 2) Density Bonus for Commercial Highway and Industrial Zones combining district to address Council’s resolution. The first proposed amendment, the new PDA2 combining district will function similarly to existing PDAs but will no longer allow residential uses to be permitted and will not be available to Commercial Highway districts, since Commercial Highway already has residential uses allowed. Commercial Highway and Industrial zones that request residential use can utilize the proposed second amendment, the Density Bonus for Commercial Highway and Industrial Zones, which grants residential uses and additional height in exchange for income-restricted dwelling units or a fee-in-lieu. The maximum height that can be achieved in the Density Bonus for Commercial Highway and Industrial Zones is a 120 feet increase from the base zone. 

The first amendment, the proposed Planned Development Area 2 (PDA2) combining district:

1. provides for industrial and commercial uses in industrial base districts;
2. allows certain site development regulations to be modified; and
3. when applicable, incorporates the terms of a planned development area agreement into a zoning ordinance following annexation of a property that is subject to a planned development area agreement.

A PDA2 combining district may be combined with the following base districts:

1. industrial park (IP);
2. major industry (MI);
3. limited industrial services (LI); and
4. research and development (R&D).

Regulations established by a PDA2 combining district may modify:

1. permitted or conditional uses authorized in the base district, except for allowing residential use;
2. site development regulations applicable in the base district, except for Subchapter C, Article 10 (Compatibility Standards); and/or
3. off-street parking design or loading regulations, sign regulations, or landscaping or screening regulations applicable in the base district.

Modifications to the base district regulations must be identified in the ordinance zoning or rezoning property as a PDA2 combining district.

The second amendment, the proposed Density Bonus for Commercial Highway and Industrial Zones combining district:

1. Can be combined with the following base districts:
   1. commercial highway services (CH);
   2. industrial park (IP);
   3. major industry (MI);
   4. limited industrial services (LI); and
   5. research and development (R&D).
2. Requires the following affordability levels based on maximum building height:
   1. For rental units:
      1. 10% of units set-aside affordable to 60% Median Family Income (MFI) or 8% of units set-aside affordable to 50% MFI for:
         • the addition of residential use with no increase in height or the addition of residential use and an increase in height of 30 feet
      2. 12% of units set-aside affordable to 60% Median Family Income (MFI) or 10% of units set-aside affordable to 50% MFI for:
         • the addition of residential use and an increase in height of 60 feet
      3. 15% of units set-aside affordable to 60% Median Family Income (MFI) or 12% of units set-aside affordable to 50% MFI for:
         • the addition of residential use and an increase in height of 120 feet
   2. For ownership units:
      1. 10% of units set-aside affordable to 80% MFI for:
         • the addition of residential use with no increase in height or the addition of residential use and an increase in height of 30 feet
      2. 12% of units set-aside affordable to 80% MFI for:
         • the addition of residential use and an increase in height of 60 feet
      3. 15% of units set-aside affordable to 80% MFI for:
         • the addition of residential use and an increase in height of 120 feet
      4. Requirements for ownership units may be satisfied by a fee-in-lieu of on-site units
3. Modifies uses allowed on the property including allowing for residential uses

Case Manager Contact

Alan Pani, Principal Planner, Planning Department, alan.pani@austintexas.gov