Plat and Subdivision Committee

Village of Arlington Heights Plat and Subdivision Committee Community Room, 3rd Floor Arlington Heights Village Hall 33 S. Arlington Heights Road Arlington Heights, IL 60005 March 8, 2017 7:00 PM I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES IV. REPORTS V. OLD BUSINESS VI. NEW BUSINESS A. Wilke Studios - 1450 S. New Wilke Rd. - T1569 Special use Permit for Hotel, Variations VII. OTHER BUSINESS VIII.ADJOURNMENT Persons with disabilities requiring auxiliary aids or services, such as an American Sign Language interpreter or written materials in accessible formats, should contact David Robb, Disability Services Coordinator, at 33 S. Arlington Heights Road, Arlington Heights, Illinois 60005, (847)368-5793 (Voice), (847)368-5980 (Fax) or drobb@vah.com. Item: Wilke Studios - 1450 S. New Wilke Rd. - T1569 Department: Planning & Community Development Requested Action 1. A Special Use Permit to allow a hotel. Variations Required 1. A variation from Chapter 28, Section 3.2-108, Hotel, to allow a hotel with more than 5% of its suites to have kitchens. Recommendation The Staff Development Committee is generally supportive of the proposed hotel, however, further details from the petitioner are needed before a formal recommendation can be rendered. The petitioner should address the following items in their formal application to the Plan Commission. 1. Provide a written justification to support proposed Special Use Permit as per the following criteria outlined in the Zoning Ordinance: • That said special use is deemed necessary for the public convenience at this location. • That such case will not, under the circumstances of the particular case, be detrimental to the health, safety, morals or general welfare of persons residing or working in the vicinity. • That the proposed use will comply with the regulations and conditions specified in this ordinance for such use, and with the stipulations and conditions made a part of the authorization granted by the Village Board of Trustees. 2. Provide a written justification for the proposed variation based on the following hardship criteria outlined in the Zoning Ordinance: • The property in question cannot yield a reasonable return if permitted to be used only under the conditions allowed by the regulations in that zone. • The plight of the owner is due to unique circumstances. • The variation, if granted, will not alter the essential character of the locality. 3. Engineering plans and details, including a fire-truck auto turn exhibit, shall be required as part of the formal review process. 4. A market assessment shall be required to demonstrate a need for this type and size development at this location. 5. A code compliant Landscape Plan shall be required 6. Design Commission review shall be required prior to a formal hearing of the Plan Commission. 7. A detailed traffic and parking study from a Certified Traffic engineer that assesses access (location, design, and Level of Service), on-site circulation, trip generation and distribution, parking, and impacts to public streets shall be required. 8. These are just preliminary comments only and should not be relied upon as identification of the only major issues. The Staff Development Committee reserves the right to change its position on issues upon submittal of a formal application and detailed review. ATTACHMENTS: Description Type Staff Report Board or Commission Report Aerial Exhibits Existing Floor Plan Exhibits Proposed Floor Plan Exhibits Plat of Survey Exhibits Executive Summary Correspondence Conceptual Architecture Example - 1 Exhibits Conceptual Architecture Example - 2 Exhibits Conceptual Architecture Example - 3 Exhibits  VILLAGE OF ARLINGTON HEIGHTS Temp File Number: T1569 Project Title: Wilke Studios Address: 1450 S. New Wilke Rd. PIN: 08-08-401-030 To: Plat and Subdivision Committee Prepared By: Sam Hubbard Meeting Date: March 8, 2017 Date prepared: March 3, 2017 Petitioner: Ravi Parikh Address: 1111 Plaza Dr. – Suite 421 Schaumburg, IL 60173 Existing Zoning: B-1: Limited Retail Business District, and B-2: General Business District SURROUNDING LAND USES Direction Existing Existing Use Comprehensive Plan Zoning North R-6 Surrey Park Condominiums Multi-Family Moderate Density Multi-Family Development South B-2 Mobil Gas Station Commercial East B-2 Citgo Gas Station Commercial West B-2, R-6 Surrey Park Condominiums Multi-Family Commercial, Moderate Density Multi-Family Development, Penang Malaysian Cuisine Requested Action: 1. A Special Use Permit to allow a hotel. Variations Required: 1. A variation from Chapter 28, Section 3.2-108, Hotel, to allow a hotel with more than 5% of its suites to have kitchens. Page 1 of 3 Project Background: The subject property is a single lot comprising a total of approximately 15,200 square feet (0.34 acres), with an existing two story building with approximately 7,700 sq. ft. of floor area. There are two office tenants that currently occupy the building. The subject property is located within the B-2, General Business District. Access to the site comes from two driveway entrances off of New Wilke Rd. The parking area and drive aisle has a circular layout and wraps around the building, containing space for 21 parking stalls. The applicant has proposed the purchase and rehab of the building to allow the conversion of the structure to a 12-room long term stay hotel that would provide “corporate housing” for individuals staying temporarily within the community. Typical leases would range from 3-6 months and could occasionally stretch to a year. The target tenant would be business professionals that are on temporary work assignments within the community, such as software engineers, insurance adjusters, and other corporate professionals. Average rental rates would be between $1,500 and $3,000 per month, fluctuating based on seasonal market factors. Each unit would have a bedroom, bathroom, and kitchen. Other than for occasional property maintenance, no staff would be onsite. Zoning and Comprehensive Plan Based on the information provided, Staff has determined that the land use falls under the definition of a hotel, which is defined as: “A building primarily designed for transient occupancy containing lodging rooms or suites accessible from a common hall or entrance, providing living, sleeping and bathroom facilities. No more than five percent of the suites shall be provided with kitchen facilities. A central kitchen, meeting rooms, and recreation rooms may also be provided.” According to the Permitted Use Table outlined in the Village’s Zoning Ordinance, a hotel requires a Special Use Permit within the B-2 zoning district. To proceed forward, the Plan Commission must review and the Village Board must approve two primary zoning actions. The first action is a Special Use Permit to allow a hotel. As part of the Special Use Permit review process, the petitioner must provide written justification demonstrating compliance with the following standards of approval: 1. That said special use is deemed necessary for the public convenience at this location. 2. That such case will not, under the circumstances of the particular case, be detrimental to the health, safety, morals or general welfare of persons residing or working in the vicinity. 3. That the proposed use will comply with the regulations and conditions specified in this ordinance for such use, and with the stipulations and conditions made a part of the authorization granted by the Village Board of Trustees. In order to substantiate the need for this type of facility, a market study that analyzes current market demand for this type of use would be required as part of the Plan Commission review process. Since each suite would contain a kitchen, a Variation to allow 100% of the suites to have a kitchen is required. Therefore, the applicant must provide a written justification based on the following hardship criteria:  The property in question cannot yield a reasonable return if per mitted to be used only under the conditions allowed by the regulations in that zone.  The plight of the owner is due to unique circumstances.  The variation, if granted, will not alter the essential character of the locality. When more detailed plans are received, additional Variations may be identified. Site, Building, and Landscaping The applicant has not proposed any major alterations to the site and would like to utilize the existing parking lot and site layout. Staff notes that the parking lot is not currently striped, does not contain curbs, has a dumpster with no enclosure, and does not likely conform to the required parking lot landscape requirements. If this project is to move forward, depending on the scope of the proposed work, additional site upgrades may be required. At a minimum, landscaping should be added along the north and western property lines to buffer the proposed use from the surrounding residential properties in this area and a dumpster enclosure should be constructed to screen the existing dumpster. While the present site layout does not likely allow ingress and subsequent egress of a fire truck without requiring the fire truck to back up, since the applicant is not proposing to remove and/or significantly alter the current building footprint, the Fire Department may be able to work with the existing layout provided the building is brought up to current Building Code requirements for sprinklers Page 2 of 3 and a fire alarm system. It is unknown to what extent the current structure conforms to Building Code standards for a hotel, and the Building Department will have to analyze whether the proposed hotel is classified as a residential/housing use or a commercial use as per the Building Code. If the building is determined to fall within the residential/housing classification, an elevator may not be required. However, if the building is determined to fall under a commercial use classification, an elevator may be required. Furthermore, depending on the size and flow of the existing water main, an increase in the size of the water main may be triggered by the development. The applicant is encouraged to reach out to both the Engineering Department and Building Department to understand potential Building Code and infrastructure implications of the proposed facility. The applicant has indicated that significant upgrades would be made to the exterior of the structure and has provided a sample of the proposed architecture that he envisions for the building. Staff notes that a Design Commission review will be required prior to any appearance before the Plan Commission. Traffic and Parking According to Chapter 28, Section 6.12, Traffic Engineering Approval, any Special Use Permit larger than 5,000 square feet in size that requires Plan Commission review is required to provide a traffic and parking study from a Certified Traffic Engineer. This study needs to assess access (location, design, and Level of Service), on-site circulation, trip generation and distribution, parking, and impacts to public streets. Per the hotel parking requirements, one parking space is required for each room. As there would be only 12 rooms and 21 parking spaces are provided on the site, the proposed hotel would comply with parking regulations. RECOMMENDATION The Staff Development Committee is generally supportive of the proposed hotel, however, further details from the petitioner are needed before a formal recommendation can be rendered. The petitioner should address the following items in their formal application to the Plan Commission. 1. Provide a written justification to support proposed Special Use Permit as per the following criteria outlined in the Zoning Ordinance:  That said special use is deemed necessary for the public convenience at this location.  That such case will not, under the circumstances of the particular case, be detrimental to the health, safety, morals or general welfare of persons residing or working in the vicinity.  That the proposed use will comply with the regulations and conditions specified in this ordinance for such use, and with the stipulations and conditions made a part of the authorization granted by the Village Board of Trustees. 2. Provide a written justification for the proposed variation based on the following hardship criteria outlined in the Zoning Ordinance:  The property in question cannot yield a reasonable return if per mitted to be used only under the conditions allowed by the regulations in that zone.  The plight of the owner is due to unique circumstances.  The variation, if granted, will not alter the essential character of the locality. 3. Engineering plans and details, including a fire-truck auto turn exhibit, shall be required as part of the formal review process. 4. A market assessment shall be required to demonstrate a need for this type and size development at this location. 5. A code compliant Landscape Plan shall be required 6. Design Commission review shall be required prior to a formal hearing of the Plan Commission. 7. A detailed traffic and parking study from a Certified Traffic engineer that assesses access (location, design, and Level of Service), on-site circulation, trip generation and distribution, parking, and impacts to public streets shall be required. 8. These are just preliminary comments only and should not be relied upon as identification of the only major issues. The Staff Development Committee reserves the right to change its position on issues upon submittal of a formal application and detailed review. ________________________________________ February 3, 2017 Bill Enright, Deputy Director of Planning and Community Development Cc: Randy Recklaus, Village Manager All Department Heads Temp File 1569 Page 3 of 3  1450 S. New Wilke (B-2) June 13, 2016 1:2,257 0 0.0175 0.035 0.07 mi 0 0.03 0.06 0.12 km Village of Arlington Heights GIS Copyright 2013  352110 COPYRIGHT 2010 TINAGLIA ARCHITECTS, INC.  Executive Summary Wilke Studios 1450 New Wilke Road Arlington Heights, IL 60025 Proposed by: Ravi Parikh Build Out Group, LLC 1111 Plaza Drive Ste 421 Schaumburg, IL 60173 Project Summary Build Out Group LLC (hereafter known as BOG) would like to acquire and redevelop the office building located at 1450 New Wilke Road, Arlington Heights. BOG believes the property would be better utilized as furnished studios apartments, catering to corporate travelers visiting near by Central Business Districts. Subject Property The building is +/-7700 sq ft. and currently has 2 tenants occupying 1200sq, ft. as of 2/1/2017. 2017 pro forma indicates a $30,000.00 loss. The current property resides on +/-13000 sq. ft. the property is land locked. A Mobil Gas Station to the South and Apartments to the north and west of the building with Wilke Road to the east. The current owners are out of state and are not interested in putting in any money into the property; they are getting below market rents due to the deteriorating condition and functionally obsolete design. Proposed A conversion would require a complete gut rehab of the interior with a fresh contemporary design and condo quality finishes. The exterior would feature a new contemporary design. Opportunity We feel that there is an underserved market for quality corporate housing in the Northwest Chicago land area. The Village of Arlington Heights stands to benefit by seeing an increase of Real Estate Property tax and Hotel Occupancy tax. BOG would collect and remit all taxes to the Village. In addition, the property would present a better perception for those visiting the village from Algonquin Road. We would be enhancing the curb appeal by redoing the exterior with a modern look and landscaping. Marketing Our target client would be corporate professionals, such as software engineers and insurance adjusters, which we have existing relationships. We would also be utilize Online Travel Agents and market to the local representatives for our local businesses. Based on my experience, the typical contracted engineer would typically receive a 3 or 6 month contract which can be up to one year. The 3-6 month contract would be the average lease range. The average monthly rent rate would be between the range of $1,500.00-3,000.00($50.00-100.00/ night) . Rental rates will be adjusted based on seasonal and market factors. About Us Ravi Parikh has been involved with the hospitality business for 11 years. He has managed and operated 2 small limited service properties each with 53 and 64 units. In addition, he currently manages a portfolio of residential real estate. General Contractor: TBD Architect : David Rawlings, D L Rawlings, Inc. Design: TBD