Attachment

EXHIBIT #1 Regular Council Meeting of 05/27/2008 EXHIBIT #1 Regular Council Meeting of 05/27/2008

EXHIBIT #2 Regular Council Meeting of 05/27/2008 PETITION TO AMEND COMPREHENSIVE PLAN AND ZONING DISTRICT Before the Dover City Council May 27, 2008 Applicants/Owners: H&M Properties, LLC PO Box 1341 Dover, DE 19903 Location: Northwest side of Commerce Way – inside the Enterprise Business Park Property Addresses: Commerce Way Dover, DE 19904 Tax Parcel ID #: ED-05-076.10-02-07.03-000 Size: 13.967 ± acres of a 22.967 acre parcel Present Use: Vacant Proposed Use: Residential Comprehensive Plan Designation: Industrial & Public Utilities Proposed Comprehensive Plan Designation: High Density Residential Present Zoning: IPM (Industrial Park Manufacturing Zone) Proposed Zoning: RG-2 (General Residence Zone) permitting: single family detached dwellings, garden apartments. Planning Commission Recommendation: Following a public hearing on April 21, 2008, where two people spoke in favor of the application and one person submitted a letter in opposition, the Planning Commission recommended in favor of the application, with a vote of 8 to 1. (An excerpt from the minutes of this meeting are included in this report.) File Number: Z-08-03

This is an application to amend the Land Development Plan map of the Comprehensive Plan and the zoning of the subject parcel. The amendment is being requested by H&M Properties, LLC. The subject parcel is currently zoned IPM (Industrial Park Manufacturing Zone) and is part of the Enterprise Business Park. It is also adjacent to the Woodmill Apartments. The subject parcel is depicted on the Land Development Plan map as Industrial & Public Utilities. The applicant is requesting RG-2 (General Residence Zone) zoning, with the intent to construct garden apartment buildings on the site. The requested plan amendment would change the land use category from Industrial & Public Utilities to High Density Residential. Preliminary Land Use Services Review (PLUS) This application was reviewed on February 27, 2008 by the Preliminary Land Use Services following a submission of the request for consideration of a Comprehensive Plan Amendment. The PLUS letter is attached to this report with the relevant sections highlighted. Existing Property The property is currently vacant and is part of the Enterprise Business Park. Surrounding Land Uses: This property is located on Commerce Way in the Enterprise Business Park, just north of Hazlettville Road. Other land surrounding the subject parcel within the Business Park is zoned IPM (Industrial Park Manufacturing Zone). North and west of the subject parcel are lands zoned RG-2 (General Residence Zone). To the north are single-family detached residences on Farmview Drive, and to the west are the Woodmill Apartments. Comprehensive Plan: In the 2003 Comprehensive Plan Update, as amended in May 2005, September 2006 and March 2007, the Land Development Plan recommends that this property be used for Industrial uses. The applicant is requesting a change in the Comprehensive Plan to allow for High Density Residential uses. Request for RG-2 (General Residence Zoning) The types of permitted uses in the RG-2 (General Residence Zone) are outlined in Article 3 §2. Section 2. General residence zones (RG-1 and RG-2). 2.1Uses permitted. In a general residence zone, no building or premises shall be used, and no building or part of a building shall be erected, which is arranged, intended or designed to be used, in whole or in part, for any purpose, except the following: 2.11 Any use permitted in one-family residence zones, except that: Not more than one professional office or studio, other than accessory to a use otherwise permitted, shall be permitted for each 25 dwelling units or major fraction thereof on the lot. Such office or studio shall be only on the street floor of any building and on the floor immediately above the street floor only if there [shall] be direct access to such office or studio from outside the building. 2.12 Garden apartments limited to placement within the RG-2 district only.

Z-08-03 Lands of H&M Properties, LLC Report to City Council – May 27, 2008 Page 3 2.13 Off-street parking accessory to uses located within the central commercial C-2 zone, provided that: (a) Such parking is situated not more than 150 feet from the C-2 zone. (b) Parking areas are screened by landscaping from adjoining properties used for residence. (c) Illumination of parking areas is shielded from the view of adjoining properties used for residence. Recommendation of the Planning Staff: The rezoning requested requires a change in the Land Development Plan map of the 2003 Comprehensive Plan Update. This entails changing the land use category classification from Industrial & Public Utilities to High Density Residential. A similar application for this site was considered previously in 2006; however, the applicant withdrew the application after receiving State comments through the PLUS process and comments from the City’s Planning Office. This application differs in two ways. First, the previous application was for the entire nearly 23-acre site, and the current application is for just under 14 acres of the site. Additionally, the previous proposal would have had access only off of Commerce Way, and the current proposal would include an expansion of Woodmill Apartments and have only a secondary access off of Commerce Way. The City is currently in the process of completing the 2008 Comprehensive Plan Update, which is scheduled to be complete in November 2008. As a part of this process, both the issues of housing and economic development are being reviewed. As a part of the development of the Economic Development section of the Comprehensive Plan, the Planning Office, with the assistance of a working group made up of economic development professionals in the region, is reviewing the inventory of the various zoning districts that contribute to economic development opportunity in the City. This review is expected to yield recommendations as to whether the inventory of various zones (commercial, industrial and office) is sufficient to support the job growth that the City desires. The working group will also make recommendations to the Planning Office for the Comprehensive Plan regarding how the City can best market itself and its available land to bring quality jobs to the City. In discussing this application within the working group, the group was opposed to this rezoning, in that it would remove land from the inventory of land to support economic development. Both affordable housing and economic development are needed in the City, and both issues are addressed in the City’s Comprehensive Plan. In this case, there are two priority issues that compete: the need for affordable housing and the need for land to support economic development. As this site is one of the few “shovel ready” industrial sites in the City, staff believes that removing even a portion of the site from the City’s industrial land base would be imprudent. Amending the Land Use Plan map to classify the subject land as High Density Residential rather than its current Industrial & Public Utilities classification would detract from the goals of the Comprehensive Plan. Specifically, it conflicts with the goal stated in Table 1-1 on page 9 and Table 1-2 on page 10 “Create a more vibrant, growing economy with a broader range of job

Z-08-03 Lands of H&M Properties, LLC Report to City Council – May 27, 2008 Page 4 opportunities through and increase in office and industrial development in appropriate and designated areas.” At this time, staff does not support the request for a Comprehensive Plan amendment (from Industrial to High Density Residential); nor does staff support the request for RG-2 (General Residence Zone) zoning in this location. Staff recommends that the Planning Commission forward a recommendation to City Council to deny the request for the Comprehensive Plan amendment and deny the rezoning of the property to RG-2 (General Residence Zone). Staff also recommends that this area be reviewed in the current Comprehensive Plan update process to determine if this change is warranted. Staff recommendation was made prior to the public hearing before the Planning Commission. Following a public hearing before the Planning Commission, the Commission recommended in favor of the Comprehensive Plan amendment and rezoning with a vote of 8 in favor and one in opposition. Planning Commission Public Hearing (including motion and dissenting opinion) Z-08-03 Lands of H & M Properties, LLC located at Commerce Way: Land Development Plan Amendment, Land Use Type: Industrial to Industrial and Multi- Family Residential – Public Hearing and Recommendation to City Council on an application for a Land Development Plan Amendment to the Comprehensive Plan Update 2003 as amended May 2005, September 2006 & March 2007 to change the land use type for a portion of a specific parcel of land. The subject area located on the north side of Commerce Way in the Enterprise Business Park is comprised of a 13.967 acre portion of a parcel consisting of 22.967 acres. The land use type is designated currently as industrial on Map 11-1. The applicant has proposed to rezone a portion of the property to a zoning classification that is identified as inconsistent with Map 11-1. The requested amendment is a change to the land use type to Residential High Density, for the subject area. Rezoning Application: Public Hearing and Recommendation to City Council for a rezoning application involving the 13.967 acre portion of the total 22.967 acres ±. The property is currently zoned IPM (Industrial Park/Manufacturing Zone). The proposed zoning is RG-2 (General Residence Zone) with 9 acres remaining as IPM (Industrial Park/Manufacturing Zone) and. The owners of record are H & M Properties, LLC and the equitable owner is Investment Property Associates, LLC. Property Address: Commerce Way. Tax Parcel: ED-05-076.10-02-07.03-000. Council District 1. Representatives: Mr. Jim McGinnis, Realtor representing H&M Properties; and Mrs. Laura Swiski, Engineer of the project. Mr. McGinnis stated that this particular ground backs up to Woodmill Apartments. Woodmill Apartments are running about 97% full currently. The City of Dover and some people on the Planning Staff have said that Dover does need some affordable housing. This would extend Woodmill Apartments into this area by about thirteen (13) acres. They are buying twenty-two (22) to twenty-three (23)

Z-08-03 Lands of H&M Properties, LLC Report to City Council – May 27, 2008 Page 5 acres if you approve it and giving nine (9) acres to the City to use for whatever they would like such as a library or a post office. He realizes that when he read the Planning Staff’s recommendations that some groups of people have said that you need to keep it manufacturing ground. Mr. McGinnis further stated that Enterprise Business Park was started back in 1980 and now he has a 150 square foot warehouse that is sitting empty except for Fed-Ex with another eleven (11) acres behind it that he has not found anyone who would be interested in buying it. Most of the buildings in the front part of the property are not warehouses they are doctors, accounting and insurance offices. Even in the warehouse next to the one he just spoke of houses Easter Seals and Department of Elections so it is not filling up and there seems to be a glut of warehouse space in the City of Dover. He believes they have about 300 acres east of town that they have had for about a half a dozen years and he does not see anything happening there. Taking thirteen (13) acres away from manufacturing and making it affordable housing does not hurt the City that much. Plus, the Woodmill Apartments that it is adjacent to, you would come through the Woodmill Apartments into this development and would not create a new entranceway through Commerce Way. Mrs. Townshend stated that this is a request to change the Comprehensive Plan and rezone the properties. The Comprehensive Plan Amendment would consist of changing the 13.967 acre portion of the site from Industrial and Public Utilities in the Comprehensive Plan to High Density Residential. The rezoning request would rezone the 13.967 acres from IPM (Industrial Park Manufacturing to RG-2 (General Residence). This is similar to a Comprehensive Plan Amendment request we received in 2006 that the applicant after receiving State comments and DAC comments withdrew the application; however, it does differ as stated by Mr. McGinnis as first the previous application was for the entire twenty-three (23) acre site and the current application is for just under fourteen (14) acres which would leave a residual of approximately nine (9) acres of industrial land on the site. Mrs. Townshend further stated that through the DAC process the Planning Staff has submitted comments and would note that this went through PLUS along with a compilation of Comprehensive Plan Amendments we received. This is one where the State recommended in opposition to it because of the idea of taking land out of an industrial classification as it is very difficult to get land into an industrial classification. The Planning Staff comments are also submitted in the report. Mrs. Townshend read into record a correspondence letter from E. Stuart Outten Jr. President of Capitol Uniform & Linen Service that stated “Dear Planning Commission, this is a letter that expresses some of my concerns about the changes proposed for the Enterprise Business Park. I am sorry I can’t be there, but I have a prior engagement that I cannot change. Concerns about changing Industrial Zoning to Residential Zoning: 1. It is a good idea to have industrial zoning separate from residential. The City of Dover Planning Committee had excellent foresight over twenty years ago when they zoned industrial and residential areas separately. Stay the course. 2. Families moving into the area in close proximity to an industrial zone will have

Z-08-03 Lands of H&M Properties, LLC Report to City Council – May 27, 2008 Page 6 concerns about industrial use. Example: Truck traffic, noise, early start/late close, and safety for children. 3. Setbacks could or would be changed by making the existing industrial properties have a farther setback from residential property liens. This would not be fair to people who are already committed to the industrial park. 4. In addition, the cost of developing property could increase. Example: landscape screens could be required as well as other restrictions. 5. If property is currently zoned for industrial use; why re-zone to residential? Industrial property can spawn new business and jobs to stimulate our economy.” – from Outten letter. Mr. McGinnis stated that with regards to Mr. Outten’s letter he recognizes how he feels and how the Staff feels; however, Woodmill Apartments are already bordering this property at this particular time. All they are asking for is an extension of their land for another thirteen (13) acres. To expand the park with tractor trailers from what he can see in selling some of the buildings and leasing them, it seems that the one bank on the one corner, several doctors offices, in fact about ten buildings have been built that are not industrial or manufacturing. The park has been changing and he does not see the need where thirteen (13) acres would hurt. Mr. Tolbert questioned if Mr. Outten was the only one who expressed concerns? Responding to Mr. Tolbert, Mr. Friedman stated that he is the only one that wrote a letter, there are others who may speak during public hearing. Mr. McGinnis stated that this application was forwarded to the Planning Commission from City Council and there was no one at City Council that spoke against it and he was unaware of this letter. Mrs. Townshend stated that we have a working group of economic development professionals that have been meeting to discuss economic development in the context of the Comprehensive Plan and this application was mentioned at that working group. They were adamant that we should not be removing land out of industrial classification. Responding to Mrs. Townshend, Mr. McGinnis stated that in answer to that there is plenty of land that they will be annexing that will make good industrial sites along the railroad tracks. Colonel Welsh stated that he could see both sides. On one hand we have apartment buildings of affordable housing that is 97% filled and we have vacant buildings in the industrial area where there does not seem to be a real rush to build manufacturing sites. As Mr. McGinnis pointed out, most of the buildings that are existing there are service types of functions such as doctors’ offices and banks that are there to serve the population and not there to serve manufacturing. While he recognizes the need to maintain an area that is zoned industrial, he looks at the number of people who are looking for affordable housing and it is not there. He wonders if it would not be wise to go with an expansion to the Woodmill Apartment acreage. One thing that he is concerned about is the offer to deed the nine (9) plus acres of land to the City and what the appearance of that might be that we are approving the change from industrial to residential because we were offered nine (9) acres of land.

Z-08-03 Lands of H&M Properties, LLC Report to City Council – May 27, 2008 Page 7 Mrs. Townshend stated that the issue is that the nine (9) acres cannot be part of the decision making. The Rezoning and Comprehensive Plan Amendment application needs to stand on its own merits and have a finding of facts that supports the application. Mr. McGinnis stated that four months ago when they were ready to do this, they wrote a letter to the City along with a copy to the press so that everyone knew about it. When we appeared before City Council, they wrote a story on it so there would not be any hidden deals. Mr. Friedman stated that what attracted him to the idea is that it is not in an isolated residential area as it is in and among an industrial area that is totally built out and abuts a similar use. Once developed, it will look like it was part of the other development. Mr. von Reider stated that he agreed that he hates to see large parcels like this get taken out of the potential use for what they were intended such as in this case, industrial. He would like to see this land rezoned to commercial office which he would find to be a good use for this land because it makes a better buffer between residential and manufacturing areas particularly because it is a single large parcel of land. Mr. Shomo stated that we do need more affordable housing. He would agree with Colonel Welsh that he too is on the fence on what way to go with this application. Mr. Nichols stated that one thing they need to look at is where will the stormwater go whether it is industrial or residential. Responding to Mr. Nichols, Mr. McGinnis stated that some of the things that the engineer has been doing on Governors Avenue are an example. They put a water garden in to collect the water that comes off the roof that has about six feet of stones in it with dirt on top so very little water runs out onto Governors Avenue. Mr. Nichols further stated that the problem is that all of this water goes into the Puncheon Run where there is already a problem with the Puncheon Run and is a big problem whether it is industrial or residential all the water is going to flow in this direction. Mrs. Townshend stated that she would like to address several of the comments that did come up from members of the Planning Commission and Mr. McGinnis that does not relate specifically to this site; but in the way that the Enterprise Business Park is developed in that it is zoned IPM (Industrial Park Manufacturing) which is the same zoning classification that General Foods has. In terms of the Comprehensive Plan, this is one of the issues that we have been looking at very closely and will be seeing when the draft comes forward with implementation items that would be essentially that we re-do our industrial zoning classifications so that we are getting what we want and that we have a business park zone rather than an industrial park zone that allows offices. The way that Enterprise Business Park has developed if you get a big industrial user there, it could cause conflicts with existing users there. There are uses there that are more industrial in nature such as Fed-Ex which has truck traffic and shipments

Z-08-03 Lands of H&M Properties, LLC Report to City Council – May 27, 2008 Page 8 early morning and late night. What we want to see come out of the Comprehensive Plan is to have zoning classifications that better meet what we want for the City job producing land to be and is realistic in what we can expect. Mr. Friedman opened a public hearing Mr. Leonard Iacono – Equitable Owner of the Property – Stated that he would expand on some of the comments that Mr. McGinnis brought up. First of all, we have been involved with the property for quite some time probably over one year and he will tell you that their initial intent when they decided to try and purchase this property was to consider an industrial warehouse or commercial service type use. After extensive research, study, and marketability we found that there was absolutely no potential use of that nature for this property and then looked at our other options. More so as a potential buyer because he owns the Woodmill Apartments, he came up with the idea of expanding the existing apartment complex due to the demand and the fact that it would lend itself simply extending his existing property limits. As far as the offer of the nine acres, he will tell you how that came about; it is all about economics. He needed to put a certain amount of units in this property in order to equate to what he was paying for the property. Once he can get his value out of it, he realized that he had residual property left over that he did not need to utilize and so therefore he thought of the idea of offering this property to the City to use for whatever nature they would like. As far as stormwater management is concerned, watershed from apartment complexes is a lot less than what it would be for industrial property because most of the surface would be paved whereas for apartments it is not. Finally, there is a time element on this decision process. If the Planning Commission decides not to approve it then obviously he would not go forward with his purchase and the property would revert back to what it is. He does not have the opportunity to wait for the completion of the Comprehensive Study since he does not own the property he would lose his option to purchase if not decided soon. Mr. Jack Melvin – 2 Teal Lane, Camden, DE – Stated that he is the owner of record of this said property; however, would not comment on this property. He is also the owner of the adjacent property, the seven acres to the south that presently houses Stock Building Supply and would like to make his comments related to the adjacent property and his feelings as a neighbor to this projected project. Prior to Stock Building Supply, he operated Delaware Lumber and Millwork at this site and then sold to Stock Building Supply; however, they did not buy the land or buildings and he is presently their landlord. He was an early identifier that Enterprise Business Park was a good place to locate a business in Dover, Delaware and he operated out there beginning in the early 90’s through the landlord arrangement he has today. They are presently bound with him through the year 2018 on this property. His comments would be as the adjacent property owner that they operated next to Woodmill for the longest time and never have we had any problems with the residents complaining about the business operation and both businesses do the exact same thing. At the same time, he never had any problems with vandalism, loitering, or feeling that the multi-family was bothering the business end of it. He feels that as a business owner he sees no problem whatsoever having this multi-family next to him in fact the business complex that is currently Stock Building Supply was designed as part of Enterprise Business Park in a quadrant of a two hundred foot building that

Z-08-03 Lands of H&M Properties, LLC Report to City Council – May 27, 2008 Page 9 backs up to this property. There is no activity that would be next to the apartments and there is a pine tree buffer that he planted eighteen years ago that is relatively large now along with a fence. He would recommend your consideration for approval. Mr. Friedman closed the public hearing after seeing no one else wishing to speak. Mr. von Reider questioned with regards to the secondary entrance onto Commerce Way, how do you make that a secondary entrance? Why can it not just be a main entrance for people who live closest to that entrance and use Commerce Way? Responding to Mr. von Reider, Mr. McGinnis stated that it would be up to the Fire Department to decide that and if they would want to put a gate across there and carry a key it would be fine with them. Mrs. Townshend stated that they will be required to have a full street by Code because of the number of units they will have there. They will have to have two connections to a public street so they will have to have the Woodmill connection as well as the Commerce Way connection. Mr. von Reider further stated that part of his dilemma is with regards to timing on this project in that you can say that the economy today demands more housing and is not demanding any industrial area; however, the economy changes and you wait for it. With the Comprehensive Plan underway and recommendations on the way, and if the Comprehensive Plan provision was out, there would be fairly little question; we would not recommend a rezoning on this property. Responding to Mr. von Reider, Mrs. Townshend stated that the timing is a part of her concern in that Staff is going through a very intense evaluation of land use and land use policy in the City through the Comprehensive Plan. We have a lot of housing development that is a fact and a lot of people are coming here to retire; however, if we do not have land zoned to produce jobs then we are not going to keep young people here. They are going to go to college and go somewhere else where there are job opportunities. Right now, we have not had a lot of success in getting the jobs we want; however, if we do not have land for it, we are going to have even less success in the future. Mr. DiMondi stated that we have shown maybe not so dedicated that certain degree of flexibility allowing for in roads. To suggest that we need to hold the line certainly does not do justice to the history of what we have done elsewhere in the City and in those areas is where we needed to hold the line as it was heavy industrial use. He does not see the two uses abutting one another, he does not see a conflict as what we exposed the City to when we rezoned and re- developed parts of Horsepond Road. Colonel Welsh agreed that it would be nice to maintain this as an industrial park; however, he feels that the times dictate that we move forward with affordable housing for the City of Dover. Colonel Welsh moved to forward to City Council a change from IPM (Industrial Park Manufacturing) to RG-2 (Residential General) for the property annotated to

Z-08-03 Lands of H&M Properties, LLC Report to City Council – May 27, 2008 Page 10 include the Comprehensive Plan Amendment from Industrial and Public Utilities to High Density Residential, Seconded by Mr. DiMondi and the motion passed with a 8-1 vote with Mr. von Reider opposed. Mrs. Townshend asked that Colonel Welsh state for the record his reasoning. Responding to Mrs. Townshend, Colonel Welsh stated that it is an extension of the existing apartment development and that it is not being used for anything else. There does not appear to be a great demand of people knocking at the door for industrial facilities and the City has a self professed need for affordable housing which this would represent. He would encourage development of the Garrison Industrial Tract. Mr. von Reider stated that he feels that it is a loss of a single tract of land developable for business or other purposes. He feels that it is encroaching residential onto existing industrial property which is already there, exists, and is operational. He certainly hopes that residents of this community do not call the City complaining of noise. He would object to this application.

EXHIBIT #3 Regular Council Meeting of 05/27/2008 EXHIBIT #3 Regular Council Meeting of 05/27/2008

EXHIBIT #4 Regular Council Meeting of 05/27/2008

EXHIBIT #5 Regular Council Meeting of 05/27/2008

EXHIBIT #6 Regular Council Meeting of 05/27/2008