HomeMy WebLinkAboutItem 07 - COUNCIL READING FILE - 774 Caudill_Council Report 7.12.16Meeting Date: 7/12/2016
FROM: Michael Codron, Community Development Director
Prepared By: Kyle Bell, Assistant Planner
SUBJECT: REQUEST FOR ALTERNATIVE INCENTIVES TO PROVIDE FOR
AFFORDABLE HOUSING THAT INCLUDE A DENSITY BONUS OF 48
PERCENT AND A REDUCTION IN SITE DEVELOPMENT STANDARDS
FOR THE MAXIMUM BUILDING HEIGHT TO EXTEND UP TO 47.5 FEET
WHERE 40 FEET IS PERMITTED FOR 774 CAUDILL STREET (CITY FILE
NO. AFFH-3142-2016).
RECOMMENDATION
Adopt a Resolution (Attachment A) approving the alternative incentives to provide for affordable
housing that includes a density bonus of 48 percent and a reduction in site development
standards for the maximum building height to extend 47.5 feet where 40 feet is normally
permitted.
SITE DATA
Applicant Caudill Street Partners
Submittal Date May 2, 2016
Complete Date May 11, 2016
Zoning C-R-SF & C-S-SF
General Plan General Retail, Services &
Manufacturing within a
Special Focus Area
Site Area 0.514 acres (22,391 s.f.)
Environmental
Status
Categorically Exempt from
environmental review
under Section 15332 (In-
Fill Development Projects)
of the CEQA Guidelines.
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DISCUSSION
The applicant, Caudill Street Partners, is requesting to construct a new four story mixed-use
building with commercial/retail at the ground level (4,355 sq. ft.), 36 residential units (five
dedicated for “very low” income) on the upper levels, and parking located at basement and
ground level. The project is located within the South Broad Street Area Plan.
The applicant is requesting two alternative incentives to provide for affordable housing. The first
is a density bonus of 48 percent, which is in excess of that provided in the Zoning Regulations
Section 17.90.040. The second request is a reduction in site development standards to allow a
building height of 47.5 feet where 40 is normally permitted.
Zoning Regulations Chapter 17.90 Affordable Housing Incentives states that when an applicant
is requesting an alternative incentive for affordable housing the incentives shall be reviewed by
the City Council. In order to deny the requests, State law (Government Code Section 65915)
requires specific findings based on substantial evidence of any of the following:
The incentive is not required in order to provide for affordable housing costs;
The incentive would have specific adverse impact upon health, safety, or the physical
environment on any real property that is listed in the California Register of Historical
Resources;
The incentive would be contrary to state of federal law.
ARCHITECTURAL REVIEW COMMISSION ACTION
On June 20, 2016, the Architectural Review Commission (ARC) held a hearing to review the
design of the proposed project which evaluated the mass and scale of the proposed building as it
relates to the neighborhood and the South Broad Street Area Plan (SOBRO). The ARC voted
unanimously to approve the project based on the finding that the project will not be detrimental
to the health, safety, and welfare of persons living or working at the site or in the vicinity. The
development is designed in a manner that does not deprive reasonable solar access to adjacent
properties by positioning the majority of the building mass along the street frontage that
incorporates vertical and horizontal wall plan offsets that provide high-quality and aesthetically
pleasing architectural design (Attachment B, ARC Staff Report & Resolution).
PROJECT ANALYSIS
The City of San Luis Obispo has recognized housing as an important issue within the City. The
City’s 2015-17 Financial Plan identifies affordable housing as a Major City Goal. The City’s
Housing Element includes numerous policies and programs that support incentives, such as
density bonuses, to provide housing for low, very low and extremely low income households.
Affordable Housing Alternative Incentives
Zoning Regulations Chapter 17.90.060(B) states that two incentives or concessions shall be
granted for housing developments that include at least 10 percent of units for very-low income
households. The proposed project provides 13.8 percent of the total units to be dedicated to very-
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low income households. Per State law, projects that provide affordable housing are allowed up to
35 percent density bonus based on the number of deed restricted affordable units provided in the
project. Chapter 17.90 of the Zoning Regulations (Affordable Housing Incentives) outlines
various incentives for affordable housing projects that developers can request. Some of the
alternative incentive examples called out in the chapter includes granting of a density bonus in
excess of State allowances, and allowing a reduction in site development standards.
Alternative Incentive Request #1: Density Bonus
The site, zoned C-R-SF & C-S-SF, has an allowable density of 18.5 units based on the site’s net
acreage (36 units per acre). The applicant is requesting a density bonus that would increase the
total number of density units to 27.33 (53.28 units per acre), resulting in a 48 percent density
bonus. To receive a 48 percent density bonus, the applicant must provide 17 percent of base units
restricted to very-low income households, as outlined in Zoning Regulation Chapter
17.90.040(E), which equals 4 very-low income units (rounded up from 3 pursuant to
17.90.40(B)). The applicant has proposed 5 studio units to be dedicated to very-low income units
to meet this requirement. Staff will work with the applicant to determine the appropriate mix of
unit types to be restricted as very-low income housing to comply with City Housing Element
policy.
Alternative Incentive Request #2: Reduction to Site Development Standards
The applicant is requesting an alternative incentive to reduce site development standards to allow
for a building height of 47.5 feet where 40 feet is normally allowed within the C-R-SF & C-S-SF
zones. The proposed building height of 47.5 feet is appropriate for this site and location because
the height, mass, and scale of the project will not negatively alter the overall character of the
neighborhood. SOBRO Form-Based Code requires that mixed-use buildings have a minimum
height allowance of 25 feet, and requires that at least 80% of the building façade be constructed
along the property build-to lines. The project is consistent with the SOBRO and Community
Design Guidelines because the development is designed in a manner that does not deprive
reasonable solar access to adjacent properties; by positioning the majority of the building mass
along the street frontage that incorporates vertical and horizontal wall plan offsets that provide
high-quality and aesthetically pleasing architectural design.
General Plan Policies and Programs: The 2015 Housing Element (HE) provides policies and
programs that speak specifically to supporting affordable housing projects and increasing density
bonuses above state allowances where appropriate.
Housing Element Program 2.17: Continue to consider increasing residential densities above
state density bonus allowances for projects that provide housing for low, very low and extremely
low income households.
Housing Element Program 6.10: To help meet the Quantified Objectives, the City will support
residential infill development and promote higher residential density where appropriate.
Housing Element Program 6.19: Continue to incentivize affordable housing development with
density bonuses, parking reductions and other development incentives, including City financial
assistance.
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Granting a density bonus in excess of State allowances, and allowing a reduction in site
development standards for building height are consistent with the 2015 Housing Element
programs and policies to provide additional housing for very-low income households.
ENVIRONMENTAL REVIEW
The project is categorically exempt under Class 32, In -Fill Development Projects; Section 15332
of the CEQA Guidelines, because the project is consistent with General Plan policies for the land
use designation, is consistent with Government Code section 65915(f)(5) which states that
granting a density bonus does not require zoning change or other discretionary approval, and is
consistent with the applicable zoning designation. The project site occurs on a property of no
more than five acres, substantially surrounded by urban uses, that has no value as habitat for
endangered, rare, or threatened species as the site is located on an existing developed property.
FISCAL IMPACT
When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which
found that overall the General Plan was fiscally balanced. Accordingly, since the proposed
density bonus request is consistent with the General Plan, it has a neutral fiscal impact.
ALTERNATIVES
1. Deny the request for a 48 percent density bonus and reduction to site development
standards, based on findings that the request is inconsistent with alternative or additional
incentive regulations within the municipal code. This is not recommended because State law
Government Code Section 65915) requires specific findings to deny the density bonus and
reduction of related property development standards.
2. Continue the project and provide direction to the applicant and staff on pertinent issues.
Attachments:
a a - Draft Resolution
b b - ARC Staff Report & Resolution
c c - Project Statement
d d - Reduced Project Plans
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Council Minutes
City Hall, 990 Palm Street, San Luis Obispo
Tuesday, July 12, 2016
Regular Meeting of the City Council
CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, July 12,
2016 at 6:00 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo,
California, by Mayor Marx.
ROLL CALL
Present: Council Members John Ashbaugh, Carlyn Christianson, Dan Rivoire, Vice Mayor Dan
Carpenter, and Mayor Jan Marx.
Absent: None
Staff: Katie Lichtig, City Manager; Christine Dietrick, City Attorney; Derek Johnson,
Assistant City Manager; and Lee Price, Interim City Clerk; were present at Roll Call.
Other staff members presented reports or responded to questions as indicated in the
minutes.
PLEDGE OF ALLEGIANCE
Council Member Dan Rivoire led the Pledge of Allegiance.
1. PRESENTATION BY CHIEF CANTRELL, REGARDING THE POLICE
DEPARTMENT UPDATE
Police Chief Deanna Cantrell and Police Captain Keith Storton provided the update and
responded to questions.
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Russ Brown, San Luis Obispo, asked the Council to delay a public hearing on the Mission Plaza
Plan to allow more citizen input on the Downtown Concept Plan.
Donald Hedrick, San Luis Obispo, spoke regarding national political events.
Mary Lou Johnson, San Luis Obispo, expressed appreciation for the City's Neighborhood
Matching Grant Program and provided an update on a vegetation clean-up project beginning in
her neighborhood.
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San Luis Obispo residents Cheryl McLean and Mila Vujovich-LaBarre expressed concerned
regarding development plans for 71 Palomar and urged the Council to engage an independent
arborist and other environmental consultants to study impacts to trees, traffic, parking and
neighborhood compatibility.
End of Public Comments ---
In response to public comment, Community Development Director Codron explained the process
for review of the Downtown Concept Plan and the Mission Plaza Master Plan, that will include a
joint meeting of the City Council and the Planning Commission as well as the typical advisory
body review process with public outreach before coming back to the Council, as previously
approved. City Manager Lichtig assured the Council that this information would be shared with
Mr. Brown and other interested parties.
Community Development Director Codron provided an update on the review process for the
development proposal at 71 Palomar development and indicated he would provide the Council
with a memorandum outlining the timeline.
CONSENT AGENDA
Public Comments:
Lydia and Bob Mourenza, and Donald Hedrick of San Luis Obispo pulled Item 4 to voice
objections to incentives recommended for an affordable housing project at 774 Caudill Street.
The following individuals spoke on Item 5 to express support for Human Relations Commission
Grants -in -Aid funding recommendations:
Sister Theresa Harpin and Donna Wilson (Restorative Partners, Inc.)
Carl Hansen (Food Bank Coalition of San Luis Obispo County)
Sonya Laputz (Alzheimer's Association)
Sylvia Grayham (Alliance for Pharmaceutical Access)
Grace McIntosh (Community Action Partnership San Luis Obispo County)
Kay Gore (SLO Syringe Exchange Program)
Dr. Consuelo Meux (SLO NOOR Foundation)
Julianne McAdams (Senior Nutrition Program of San Luis Obispo County)
Donald Hedrick, San Luis Obispo
The following individuals spoke on Item 5 to ask the Council to reconsider the recommendation
and approve their funding requests.
Marie Brinkmeyer and Thomas Clough (Senior Volunteer Services: Central Coast
Community Volunteer Program)
Susan Graves (CASA of San Luis Obispo County)
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The following individuals pulled Item 6 to express support for Tourism Business District and
Promotional Coordinating Committee Grants -in -Aid funding recommendations:
Angela Tahti (Arts Obispo)
Stacy Hunt and Michael Jencks Central Coast Ecologistics, Inc.
Chris Miller (Performing Arts Center, San Luis Obispo)
Brian Alhadeff (Opera San Luis Obispo)
Roxanne Carr (Friends of Cuesta Performing Arts Center)
Denise Leader Stoeber (Cal Poly Arts and San Luis Obispo County Library Foundation)
Tom Mitchell (San Luis Obispo Railroad Museum)
Erin McCall (Canzona Women's Ensemble)
Jennifer Disunto (Downtown Association)
Robert Knowles (Central Coast Shakespeare Festival)
Members of TBID and the PCC Matt Wilkins, Stephanie Robertson and Sasha Palazzo
Donald Hedrick, San Luis Obispo
Mila Vujovich-LaBarre pulled Items 8 and 11 to address the conditions at the Highway 101 and
Los Osos Valley Road interchange and the intersection of Highway 101 and Prado Road.
End of Public Comments ---
In response to public comment, Community Development Director Codron provided
clarifications about the affordable housing project proposed for 774 Caudill and explained that
the Project Study Report for the Prado Road interchange will include a formal review and
evaluation process.
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 5-0, to approve the consent Calendar Items 2 thru 13.
2. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
CARRIED 5-0 to waive reading of all resolutions and ordinances as appropriate.
3. MINUTES OF APRIL 19 AND MAY 3, 2016
CARRIED 5-0 to approve the minutes of the City Council meetings of April 19 and May 3,
2016.
4. RE UEST FOR ALTERNATIVE INCENTIVES TO PROVIDE FOR
AFFORDABLE HOUSING THAT INCLUDE A DENSITY BONUS OF 48 PERCENT
AND A REDUCTION IN SITE DEVELOPMENT STANDARDS FOR THE
MAXIMUM BUILDING HEIGHT TO EXTEND UP TO 47.5 FEET WHERE 40
FEET IS PERMITTED FOR 774 CAUDILL STREET (CITY_ FILE NO. AFFH-3142-
2016)
CARRIED 5-0 to adopt a Resolution No. 10734 (2016 Series) entitled "A Resolution of the
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City Council of the City of San Luis Obispo, California, approving the alternative incentives
to provide for affordable housing that include a density bonus of 48 percent and a reduction
in site development standards for the maximum building height to extend to 47.5 feet where
40 feet is normally permitted, with a categorical exemption form environmental review
pursuant to Section 15332 of the California Environmental Quality Act (CEQA) Guidelines
as presented in the City Council agenda report and attachments dated July 12, 2016 (744
Caudill AFFH-3142-2016)."
5. CONSIDERATION OF 2016-17 HUMAN RELATIONS COMMISSION (IIRC)
GRANTS-IN-AID (GIA) FUNDING RECOMMENDATIONS
CARRIED 5-0 to:
1. As recommended by the Human Relations Commission, approve the 2016-17 Grants -in -
Aid funding allocations in the amount of $138,500; and
2. Authorize the Community Development Director to execute agreements with each grant
recipient.
6. 2016-17 COMMUNITY PROMOTIONS PROGRAM — TOURISM BUSINESS
IMPROVEMENT DISTRICT (TBID) AND PROMOTIONAL COORDINATING
COMMITTEE ,PCC)
CARRIED 5-0 to:
As recommended by the Tourism Business Improvement District (TBID) Board and the
Promotional Coordinating Committee (PCC):
Authorize the City Manager to enter into various contracts and program expenditures for
the Tourism Business Improvement District (TBID) not to exceed the 2016-17 program
budget of $1,434,000 based on the recommendations by the TBID Board; and
2. As recommended by the Tourism Business Improvement District (TBID) Board, approve
the first two-year extension of the contract with Barnett Cox and Associates (BCA) and
Matchfire (as successor in interest of Studio Good) for marketing services in the amount of
814,500; and
3. Authorize the City Manager to enter into various contracts and program expenditures for
Community Promotions not to exceed the 2016-17 program budget of $403,609 based on
the recommendations by the Promotional Coordinating Committee (PCC); and
a. This includes the 2016-17 Grants -in -Aid (GIA) allocations in the amount of
100,000 and authorization to execute individual agreements with each grant
recipient.
b. This includes the first one-year term renewal of the contract with FreshBuzz for
promotional services in the amount of $30,000.
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4. Authorize the City Manager to enter into contracts utilizing the TBID Fund carryover and
un -appropriated fund balance from the 2015-16 fiscal year for tourism marketing
expenditures in 2016-17 based on the recommendations by the TBID Board; and
5. Authorize the City Manager to enter into contracts utilizing the TBID Fund Reserve of
100,000 for tourism marketing expenditures in 2016-17 based on the recommendations by
the TBID Board.
7. 2016 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM
APPLICATION
CARRIED 5-0 to:
Authorize staff to submit an application for a 2016 Edward Byrne Memorial Justice
Assistance Grant in the amount of $13,873.
2. If the grant is awarded, authorize the City Manager to execute necessary grant documents
and direct the appropriation of monies into the accounts required to administer the grant.
8. LOS OSOS VALLEY ROADIUS 101 INTERCHANGE IMPROVEMENT PROJECT
LANDSCAPE ANIS MITIGATION SPECIFICATION NO. 91435 - COOPERATIVE
AGREEMENT WITH CALTRANS
CARRIED 5-0 to approve a Cooperative Agreement with the State of California Department
of Transportation (Caltrans) to allow for the construction and maintenance of the Los Osos
Valley Road/US 101 Interchange Improvements Project - Landscape, Irrigation, Environmental
Mitigation, and Erosion Control Design, Specification No. 91435.
9. JENNIFER STREET SEWER LINE REPLACEMENT, SPECIFICATION NO. 91185
CARRIED 5-0 to:
Approve plans and specifications for the Jennifer Street Sewer Line Replacement,
Specification No. 91185 and authorize staff to advertise for bids; and
2. Authorize the City Manager to award the contract if the lowest responsible bid is within
the Engineer's estimate of $802,000.
10. RAILROAD TRAIL MAINTENANCE 2016
CARRIED 5-0 to:
1. Approve plans and specifications for the Railroad Trail Maintenance project, Specification
No. 91422; and
2. Authorize staff to formally advertise for bids; and
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3. Authorize the City Manager to award the construction contract if the lowest bid is less than
the Engineer's Estimate of $90,000.
11. CALTRANS COOPERATIVE AGREEMENT: PRADO & HWY 101
CARRIED 5-0 to:
Approve a cooperative agreement with CalTrans for the proccssing of a Projcct Study
Report (PSR) for improvements to the Prado Road/ US 101 interchange; and
Z. Authorize the City Manager to execute the agreement pending deposit of sufficient funds
from the San Luis Ranch to reimburse PSR activities and Caltrans review; and
3. Appropriate $25,000 from the Transportation Impact Fee Account (Fund 405) to fund
City related work on the Project Study Report.
12. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) CURB RAMPS 2016
PROJECT, SPECIFICATION 91445
CARRIED 5-0 to:
Award a contract to Victor Concrete, Inc. in the amount of $204,800 for the CDBG Curb
Ramps 2016 project, Specification No. 91445; and
2. Approve a transfer of $133,000 from the design phase of the Street Reconstruction and
Resurfacing Master Account to the projects construction phase.
13. RESOLUTION AUTHORIZING THE COUNTY'S COLLECTION OF FIRE AND
LIFE SAFETY INSPECTION FEES FOR 2015-16 ON THE SECURED PROPERTY
TAX ROLL FOR 2016-17
CARRIED 5-0 to adopt Resolution No. 10735 (2016 Series) entitled "A Resolution of the
City Council of the City of San Luis Obispo, California, authorizing the San Luis Obispo
County Auditor to collect fees for 2015-16 Fire and Life Safety Inspections of multi
dwelling properties containing three or more dwelling units on the secured property tax roll
for fiscal year 2016-17 pursuant to California Government Code Section 54988, et seq."
LIAISON REPORTS
Council Member Ashbaugh mentioned he had distributed his Liaison Report earlier and added
that he attended the workshop on the Downtown Concept Plan. In response to his question
regarding the resignation of Ken Schwartz from the Creative Vision Team, City Manager Katie
Lichtig provided an update on the process for filling the unscheduled vacancy.
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COUNCIL COMMUNICATIONS
None.
PUBLIC COMMENT ON CLOSED SESSION ITEM
Mayor Marx called for public comment. There was no one present to speak on Closed Session
items. Closed Session convened at 8:20 P.M.
CLOSED SESSION
A. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code § 54957.6
Agency Negotiators: Monica Irons, Katie Lichtig, Derek Johnson, Greg
Zocher, J. Christine Dietrick, Jon Ansolabehere,
Garret Olson, Rick Bolanos
Represented Employee Organizations: San Luis Obispo City Employee's Association
SLOCEA)
San Luis Obispo Police Officer's Association
POA)
San Luis Obispo Police Staff Officer's Association
SLOPSOA)
International Association of Firefighters Local 3523
Unrepresented Employees: Unrepresented Management Employees
Unrepresented Confidential Employees
B. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government
Code § 54956.9:
No. of potential cases: One.
A point has been reached where, in the opinion of the legislative body of the local agency on
the advice of its legal counsel, based on existing facts and circumstances, there is a
significant exposure to litigation against the local agency. These facts and circumstances that
might result in litigation, but which the local agency believes are not yet known to a potential
plaintiff or plaintiffs. (Government Code § 54956.9 (e)(1))
C. CONFERENCE WITH LEGAL COUNSEL —EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Government Code § 54956.9;
Name of case: San Luis Obispo Police Officers Association v. City of San Luis Obispo; State of
California Public Employment Relations Board Case No. LA -CE -729-M
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CITY ATTORNEY REPORT ON CLOSED SESSION
The City Attorney reported that there were no reportable actions taken on any of the three items.
ADJOURNMENT
The meeting was adjourned at 9:07 p.m. The Council adjourned to a Special Meeting to be held
on Thursday, July 14, 2016 at 4:00 p.m. in the Council Hearing Room, located at 990 Palm
Street, San Luis Obispo, California, for the purposes of conducting a closcd scssion rclatcd to
confidential personnel matters.
The next Regular City Council meeting is scheduled for July 19, 2016 at 6:00 p.m., in the
Council Chamber, respectively, in the Council Chamber, 990 Palm Street, San Luis Obispo,
California.
Lee Price, MMC
Interim City Clerk
APPROVED BY COUNCIL: 09/06/2016
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