PLANNING AND ZONING COMMISSION AGENDA ITEM
ACTION REQUESTED:
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Conduct the public hearing for 1200 E. Diehl Road (1200 Diehl Road Residences) - PZC 24-1-034
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: Sara Kopinski, AICP
ENTITLEMENTS REQUESTED:
1. Rezoning the Subject Property from ORI to OCI;
2. A preliminary plat of subdivision (City Council review only);
3. Conditional use to establish the Hines Diehl Road Resubdivision PUD and a preliminary PUD plat along with conditional uses for multi-family residential, retail, eating establishments and parking areas as a principal use on the Subject Property; and, multiple deviations to the Naperville Municipal Code.
BOARD/COMMISSION REVIEW:
Official notice for the public hearing for PZC 24-1-034 was published in the Naperville Sun on Sunday, July 21, 2024.
BACKGROUND:
The subject property consists of approximately 9.5 acres located at 1200 E. Diehl Road. It is currently zoned ORI (Office, Research and Light Industry District) and consists of a vacant, 100,000 square foot office building that was previously home to DeVry University headquarters. The petitioner indicates that the property has remained unoccupied, with no new office prospects on the horizon, since DeVry’s relocation.
Hines Acquisitions, LLC is the petitioner proposing 1200 Diehl Road Residences, a mixed-use community between Freedom Commons to the north, employment corridors to the east and west, and commercial and residential areas to the south. The proposed development will consist of two commercial buildings located at the main entrance along Diehl Road, and a multi-family residential building to the south. The existing parking garage on the property will remain to ensure adequate parking is provided for both the proposed commercial uses and residential units.
The City’s Land Use Master Plan (LUMP) designates the subject property as Regional Center. Areas designated as Regional Center are recommended for a diverse mix of uses, including shopping and dining establishments with supporting residential uses, to support commercial businesses and institutional uses. Regional centers draw customers and visitors from throughout the City and surrounding region. Staff finds the petitioner’s proposal to be compatible with this designation.
DISCUSSION:
Several entitlements are requested as part of 1200 Diehl Road Residences and are identified in the Entitlement Request Table attached to this agenda item. Staff is supportive of the zoning requests and finds the proposed development will complement existing land uses surrounding the subject property and contribute to activity within the area.
Key Development Components
Rezoning from ORI to OCI
The subject property is zoned ORI and is located along the City’s I-88/Diehl Road corridor. The I-88/Diehl Road corridor is largely developed with buildings used for office or institutional purposes. While the property was originally developed and used for offices, it has remained unoccupied, with no new office prospects on the horizon, since the DeVry University headquarters relocation. The petitioner proposes rezoning the subject property from ORI (Office, Research and Light Industry District) to OCI (Office, Commercial and Institutional District) to facilitate redevelopment of the property.
The subject property is located at a transitional point along the I-88/Diehl Road corridor, with a variety of land uses and zoning districts surrounding it:
• North: Freedom Commons (B2 PUD) and offices (ORI)
• East: Offices (ORI PUD)
• South: Iroquois club Condominiums (R3) and Costco (B2)
• West: Offices (RD PUD)
The intent of the OCI zoning district is to act as a transitional zone between intensive business areas and residential neighborhoods. This collection of nearby land uses is reflective of the area’s function as a transitional area within the Naperville community. The City’s future land use plan recommends that this area feature a diverse mix of uses to draw customers and visitors from throughout Naperville and the surrounding region. Staff finds the proposed OCI zoning district accommodates these goals.
The petitioner notes that the request to rezone the property to OCI will build upon the trend of development in the area and support nearby offices to ensure long-term sustainability of the I-88/Diehl Road corridor.
Findings of Fact
The petitioner’s responses to the Standards for Granting a Map Amendment can be found in the attachments. Upon review, staff agrees with the petitioner’s Findings and recommends their adoption by the Planning and Zoning Commission.
Preliminary Plat of Subdivision (City Council Review Only)
The petitioner proposes a preliminary plat of subdivision to resubdivide the existing lot into five lots. The Preliminary Plat of Subdivision is not subject to review by the Planning and Zoning Commission (PZC), but information has been provided for reference. Staff finds the proposed plat of subdivision meets the technical requirements for approval and is supportive of the resubdivision.
At this time, the petitioner has requested approval of a deviation to Section 7-4-3:6.1 of the City’s Subdivision Regulations to not require a public utility drainage easement around each subdivided lot. Staff from the City’s utility departments are not supportive of this request and will continue to work with the petitioner on the location of easements as the project progresses through preliminary and final approvals.
Hines Diehl Road Resubdivision PUD and Preliminary PUD Plat
The Municipal Code identifies that the objective of a PUD is to encourage a higher level of design and amenity than is possible to achieve under otherwise applicable zoning regulations. The property is located in the City's I-88 corridor and the Land Use Master Plan designates the future land use as Regional Center, which provides flexibility and incorporates commercial, entertainment and other uses that support a more vibrant, mixed-use environment.
The petitioner’s proposal is consistent with the Regional Center designation of the Comprehensive Plan, with two commercial buildings strategically located along the Diehl Road frontage and functioning as a natural extension of Freedom Commons; and, a five-story, multi-family residential building that creates a terminated vista at south end of Freedom Drive. The development of a mixed-use community is anticipated to support nearby employment centers by offering dining and shopping options that make the corridor a more attractive work environment; and, the residential units will provide housing opportunities proximate to nearby offices as well as a consistent customer base for surrounding businesses.
The Hines Diehl Road Resubdivision PUD features outdoor patio spaces, quality architecture and residential amenities.
Common Open Space
Section 6-4-3:3 of the Municipal Code requires mixed-use PUDs to provide outdoor common areas covering a minimum of 20% of the site. The proposed site layout provides approximately 2.19 acres of common open space area, which is equivalent to approximately 23% of the total lot coverage. These outdoor common areas feature outdoor patio space, landscaped pedestrian connections throughout the development, and outdoor courtyards for residents.
Findings of Fact
Staff believes that the proposed development and open space areas satisfy the intent of the City’s PUD standards. The petitioner’s responses to the Standards for Granting or Amending a Planned Unit Development can be found in the attachments. Upon review, staff agrees with the petitioner’s Findings and recommends their adoption by the Planning and Zoning Commission.
Conditional Uses
The petitioner requests approval of conditional uses for retail, restaurants, multi-family residential, and parking (as a primary use). Staff finds that collectively, the proposed development and associated land uses meet the intentions of both the City’s zoning ordinance and the goals and key development considerations identified in the Land Use Master Plan (LUMP). The LUMP identifies retail and restaurants as primary uses in Regional Centers, and multi-family residential as a supporting use. It also acknowledges that parking should be provided in both surface parking and dedicated parking structures, which is consistent with the petitioner’s proposal.
The petitioner’s proposed uses will collectively function as a mixed-use community that provides a transition between employment centers, entertainment centers, residential developments and commercial businesses. The community will be accessed through an existing, signalized intersection along Diehl Road. As a PUD, the development will have a controlling site plan with outdoor common areas and pedestrian connections, approved building elevations, and shared parking. Any future modifications proposed within the PUD will be processed in accordance with Section 6-4-6 (Changes to a Final PUD) of the Municipal Code. Additional notes on each conditional use proposed are provided below:
• Retail/restaurants: The commercial buildings are planned to be located at the entrance to the development and will function as a natural extension of the retail/restaurant uses at Freedom Commons. Code compliant parking will be provided for these uses, and the elevations have been designed with quality materials to comply with the City’s building design guidelines and complement the existing commercial buildings to the north. Granting a conditional use to allow general retail and eating establishments in the OCI district is consistent with the primary uses listed for Regional Center-designated properties.
• Multi-family residential: The residential component of the proposal will diversify housing options in the city by providing a product with an urban form, proximate to the City’s employment centers, multiple transportation modes, and commercial goods and services. Multi-family residential is classified as a supporting use in Regional Centers and is anticipated to support surrounding employment areas and commercial businesses. Additionally, School District 203 provided a letter identifying no objection to the proposed development.
• Parking as a principal use: The petitioner seeks approval of a conditional use to allow parking facilities as a principal use since subdivision of the property results in the repurposed parking structure being the only use located on Lot 4 and a surface parking lot being the only use located on Lot 5. Staff finds the parking structures to be accessory to the commercial and residential uses proposed for the PUD, and therefore does not have any concerns with the proposal.
For the reasons noted above, staff is supportive of each conditional use requested.
Findings of Fact
The petitioner’s responses to the Standards for Granting a Conditional Use can be found in the attachments. Upon review, staff agrees with the petitioner’s Findings and recommends their adoption by the Planning and Zoning Commission.
PUD Deviations
Several deviations are requested in conjunction with the PUD request and are identified in the Entitlement Request Table attached to this agenda item. Combined, these deviations facilitate the unique community 1200 Diehl Road Residences is envisioned to be. Many of the PUD deviations requested arise as a result of the proposed subdivision and technicalities of the City’s zoning ordinance. Details for each PUD deviation requested can be found in the Development Petition attached to this agenda item, but can generally be grouped into the following categories:
• Residential deviations: The petitioner requests approval of multiple deviations applicable to Lot 3 on the subdivision plat, which relates to the multi-family residential building proposed:
o Density: The petitioner proposes a total of 306 dwelling units on the approximately 9.5-acre Subject Property, as part of a mixed-use community. This equates to approximately 1,365 square feet of lot area per dwelling unit across the PUD. However, the residential building will be situated on Lot 3 and per Section 6-7F-5 of the Municipal Code, density is measured solely based upon the lot the units are located. As such, the petitioner’s proposal results in a density of 440 square feet of lot area per dwelling unit.
The petitioner has coordinated with the School and Park Districts and the traffic study shows the existing roadway network can support the anticipated traffic from the development. The City’s LUMP notes that deviations for increased density may be most appropriate in areas adjacent to arterial roadways (including Diehl Road), walkable to commercial areas and other amenities, and when integrated within a larger planned development such as the one proposed.
o Parking: The petitioner requests approval of a parking deviation to reduce the parking required for multi-family residential from 2.25 spaces per unit to 1.6 spaces per unit. To support the requested variance, the petitioner has submitted a parking evaluation that compares the City’s parking requirements to ITE Survey Data, comparable residential developments, and U.S. Census Bureau data. The findings indicate that the proposed parking ratio of 1.6 parking spaces per dwelling unit surpasses the parking needs of comparable developments. Additionally, staff notes that an average of more than 1 parking space per bedroom will be maintained.
o Height: The petitioner requests approval of a deviation to Section 6-7F-8 to increase maximum permitted building height from 43 ft. to 58 ft., and the maximum floor area ratio from 1.5 to 2.4 for the residential building. The subject property is located entirely within the I-88 employment Corridor and adjacent to structures that range in size from 1 story to 10+ stories. The proposed building size is complementary to existing buildings in the vicinity of the Subject Property and measures shorter in height than what the property’s current zoning classification of ORI would otherwise permit.
o Materials: The petitioner requests approval of a deviation to Section 5-2C-3 of the Municipal Code to reduce the percentage of masonry material required on a multi-family residential building from 50% to approximately 23%. The proposed elevations reflect a variety of building materials, including brick, significant glass elements, masonry or composite siding, and metal cladding to blend traditional building materials with a more modern design aesthetic. The proposed elevations include brick accents at the ground level and on the sections of building that protrude or face public rights-of-way, and the petitioner worked with staff to decrease the amount of stucco on the building and replace it with fiber cement panels which are acknowledged as a quality building material.
o Wall signage: The petitioner requests approval of a deviation to Section 6-16-4:2 of the Municipal Code to permit a permanent wall sign measuring 20 square feet in size to be installed on a residential property. Staff is in support of the request due to the transitional location of the property between commercial and residential land uses, the sign’s orientation towards commercially zoned properties, and the aesthetics of the sign.
• Setback deviations: Multiple setback deviations are requested to reduce the required minimum front and interior side yards throughout the development. Many of the setback requests result from the way the petitioner proposes to subdivide the property. The City’s zoning ordinance establishes setback requirements to ensure there is appropriate separation between adjacent properties and uses. In this instance, the PUD will function jointly and not as individual lots. Many of the setback deviations requested are along property lines that are internal to the development and will be undetectable to patrons and residents.
Staff does not have concern with the reduced building and parking lot setbacks proposed along Diehl Road. Staff notes that this section of Diehl Road was recently improved by the County and that the improvements included acquisition of a portion of the subject property. Additionally, the setbacks proposed are an improvement over existing conditions.
• Fence deviation: The petitioner requests approval of a deviation to Section 5-10-3:5 to eliminate the fence required along the development’s southern boundary. Per the Municipal Code, parking abutting a property zoned for residential use is required to have a solid wood fence, wall, or comparable barrier across 100% of the parking lot to a minimum height of six feet. The intent of this requirement is to screen residential properties from parking areas and headlights.
Staff notes that while the property immediately south of the PUD is zoned for residential use (commonly known as the Iroquois Club), it is improved with a stormwater management area and walking paths. The Iroquois Club’s residential units maintain a significant setback from the PUD’s planned parking areas, and staff finds the PUD’s proposed landscaping will provide a sufficient screen for vehicular headlights shining across the property. Furthermore, the Petitioner is coordinating with the Iroquois Club to install cross-access between the PUD and the Iroquois Club property to create pedestrian accessibility between both properties. A fence would negatively impact any future pedestrian connections.
Findings of Fact
The petitioner’s responses to the Standards for Granting a PUD Deviation can be found in the attachments for each deviation requested. Upon review, staff agrees with the petitioner’s Findings as they pertain to the requested zoning deviations and recommends their adoption by the Planning and Zoning Commission.
Conclusions and Key Takeaways
Staff finds the petitioner’s proposal for a mixed-use community to be consistent with the intentions of the City’s Land Use Master Plan and compatible with surrounding properties. Staff is supportive of each zoning entitlement requested:
§ The petitioner requests approval of rezoning the Subject Property from ORI to OCI. Staff is supportive of this zoning designation.
§ The petitioner requests approval a preliminary plat of subdivision to resubdivide the property into five lots. Staff finds the plat of subdivision meets all technical requirements for approval. (City Council review only)
§ The petitioner requests approval a Conditional use to establish the Hines Diehl Road Resubdivision PUD and a preliminary PUD plat along with conditional uses for multi-family residential, retail, eating establishments and parking areas as a principal use on the Subject Property; and, multiple deviations to the Naperville Municipal Code to develop the property with a mixed-use development known as 1200 Diehl Road Residences. Staff is supportive of the PUD and finds the proposed uses to collectively create a mixed-use development that will complement Freedom Commons to the north, employment corridors to the east and west, and commercial and residential areas to the south.