Development Special Use Permit #2025-10030 220 & 224 South Peyton Street Public Hearing and consideration of a request for a Development Special Use Permit and Site Plan with modifications to construct a multi-unit residential building with ground floor commercial use, and Special Use Permit requests to increase the nonresidential floor area above 1.5 and for a parking reduction; zoned CD/Commercial Downtown. Applicant: Windmill Hill LLC. represented by Lauren Riley, Attorney

City Council is considering the approval of a Development Special Use Permit (DSUP #2025-10030) and Site Plan for a three-story mixed-use building at 220 & 224 S. Peyton Street. The project, proposed by Windmill Hill LLC, will replace a surface parking lot with eight one-bedroom residential units and ground-floor commercial space (office/retail) in the CD/Commercial Downtown zone.

Key Approvals & Modifications Requested:

• A Special Use Permit (SUP) to increase the non-residential Floor Area Ratio (FAR) above 1.5, resulting in a total project FAR of 1.87.
• An SUP for a full parking reduction, providing 0 spaces where 7 are required, citing the site's transit-rich location.
• Modifications to side yard setback, open space (providing 21.2% vs. 35% required), and crown coverage (providing 13% vs. 25% required) requirements, due to the site's unusual triangular shape.

Community Benefits & Contributions:
The project aims to redevelop an underutilized lot, enhance the streetscape with new sidewalks and street trees, and significantly improve stormwater management (exceeding minimum treatment twofold). It complies with the Green Building Policy (National Green Building Standard 2020 Silver, Energy Star v1.1, solar-ready roof) and will contribute $27,337 to the Housing Trust Fund, $1,052 to the Urban Forestry Fund, and $2,500 for a new multi-space parking meter. A $3,162 public art contribution or on-site art is also required.

Community Feedback & Planning Commission Action:
Neighbors expressed concerns about emergency vehicle access, fire truck turnaround radius on Commerce Street, and increased parking congestion. The Planning Commission, on January 6, 2026, recommended approval with a 7-0 vote, agreeing with staff that the project is a pragmatic infill solution for a challenging site. Staff will propose modifying the Residential Parking Permit District 4 boundary to exclude the property, making future residents ineligible for RPPs.