Non-Conforming Improvements - Whenever the City’s Land Development Code is changed, properties that do not comply with the new code are then rendered legally non-conforming. The code allows for these non-conforming improvements (i.e. gravel parking lots, inadequate setbacks, Special Plan issues, impervious surface ratios, etc.) to continue in perpetuity unless the owner decides to make changes to the improvements or use of the property. One of the changes that “triggers” compliance with the Code is a “Substantial Improvement.” At the time a Substantial Improvement is proposed, the Code requires the owner to bring many of the non-conforming improvements into compliance or seek a variance.

Substantial Improvements—The Code defines a Substantial Improvement as a proposed improvement to the existing building that would cost more than 50% of the value of said building. Staff uses the Orange County Property Appraiser's “Building Value” in determining if a proposed improvement is a “Substantial Improvement.” Many times the “Building Value” figure is lower than expected and a Substantial Improvement is determined.

Issues— In order to avoid the delay of a variance, many times property owners will “down scale” their project to avoid triggering the Substantial Improvement threshold. This can result in a less desirable project for both the owner and the City. Removing or increasing the Substantial Improvement threshold would result in missed opportunities to bring a non-compliant property closer to compliance. Other issues include using the Property Appraiser’s Building Value figure for the “just value” of the structure in many cases is too low.

Solution—Allow the Zoning Official to be able to issue Modification of Standards for projects in the Traditional City that are older than 30-years old that trigger the Substantial Improvement threshold for existing legal non-conformities. 

Also, another change provided by this ordinance would include amending the triggering of a Substantial Improvement by eliminating the term “just value” and replacing it with “50% of the present replacement value of the structure..." as derived from the Orange County Property Appraiser. In other words, Staff would determine that a project would be a Substantial Improvement if the improvement cost of the structure would be greater than 50% of the “Estimated New Cost” of the structure as determined by the Orange County Property Appraiser database.