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HomeMy WebLinkAboutItem 16 - COUNCIL READING FILE_j_Council Initiation and Action Update dated 09-17-2019Department Name: Community Development Cost Center: 4003 For Agenda of: September 17, 2019 Placement: Public Hearing Estimated Time: 60 minutes FROM: Michael Codron, Community Development Director Prepared By: Kyle Bell, Associate Planner SUBJECT: INITIATION OF A PROJECT TO CONSTRUCT A SIX-STORY MIXED-USE BUILDING CONSISTING OF APPROXIMATELY 30,000 SQUARE FEET OF COMMERCIAL/OFFICE SPACE AND 50 RESIDENTIAL DWELLING UNITS LOCATED AT 1144 CHORRO STREET. PROJECT ENTITLEMENTS INCLUDE: 1) DEVELOPMENT REVIEW (MAJOR); 2) PLANNED DEVELOPMENT OVERLAY REZONE; AND 3) ENVIRONMENTAL REVIEW. RECOMMENDATION Receive a presentation on the project proposal from staff and the project applicant and direct staff to proceed with processing of the applications with the following considerations: 1. The application of a Planned Development (PD) Overlay zone is an appropriate method for implementation of the City Council’s goal for higher density housing in the Downtown; and 2. The Mandatory Project Features required for consideration of establishment of the PD Overlay zone and the Community Benefits Policy Objectives required for consideration of the proposed building height of 75 feet are appropriate and in alignment with the scope of the project given the priority that the City Council has placed on new housing in the Downtown. 3. Direct staff to move forward with priority processing of the project through the entitlement process, including environmental review pursuant to the California Environmental Quality Act (CEQA). DISCUSSION The purpose of the project initiation at 1144 Chorro Street, before the City Council is to offer feedback to the applicant and staff as to whether the project’s strategies for addressing the required Community Benefits Policy Objectives1 for structures over 50 feet in height, and the Mandatory Project Features2 to provide for the Planned Development Overlay are consistent with the intent of the Zoning Regulations before plans are further refined. These comments do not 1 Zoning Regulations §17.32.030.E.5. Community Benefits Policy Objectives. The intent of the following policy objectives is to ensure that buildings taller than 50 feet proposed in the C-D zone include features that meet the specific policy objectives outlined for tall buildings in the General Plan. 2 Zoning Regulations §17.48.060. Mandatory Project Features. The Planning Commission may recommend, and the Council may approve, a rezoning to apply the PD overlay zone only for a project that incorporates a minimum of three of the following four features… Packet Pg. 173 Item 13 bind the City Council to any final determinations and actions on the project and are intended to 1) Provide the public and community with opportunities for early and meaningful input on the project and 2) Provide the Council early input on key elements of the project including key criterion related to height. Background The subject property is located in the Downtown Commercial (C-D-H) zone within the Downtown Historic District. The proposed project consists of a six-story mixed-use development with a maximum height of 75 feet. The proposed plan includes; ground floor retail (4,806 sq. ft.) and parking (seven spaces), two stories of office space (25,251 sq. ft.), and three stories of residential dwellings (50 units) (Attachment A, Project Plans). 1. Zoning Regulation Guidance. The City’s Zoning Regulations, §17.32.030.E, provide regulations that outline the considerations for buildings higher than 50 feet in the Downtown Commercial (C-D) zone. This section encourages creative building design, mixed-use developments, and accommodation of additional residential units in the Downtown Core, provided that such taller buildings (analyzed through discretionary review processes) contribute defined community benefits and further the goals of the Downtown Core as stated in the Land Use Element of the General Plan. The Planning Commission may approve a building height up to 75 feet if it determines that the project includes three community benefits, with at least one of which must be from the affordable and workforce housing objective. The applicant in this instance seeks a conditional use permit for the 75 feet building by providing the following three Community Benefits Policy Objectives: a) Affordable and Workforce Housing: providing 25% moderate-income households; and b) Pedestrian Amenities: Downtown Centre proposed as a public plaza; and c) Historic Preservation (Off-site): provide permanent preservation of a listed building off- site within the Downtown or Chinatown Historic Districts (building not yet specified). Figure 1: Rendering as seen from mid-block of Marsh Street between Chorro and Morro Streets Left), Rendering as seen from the intersection of Marsh and Chorro Streets (Right). Packet Pg. 174 Item 13 2. PD Overlay. The PD Overlay zone is intended to provide for flexibility in the application of zoning standards for proposed developments. The purpose is to allow consideration of innovation in site planning and other aspects of project design. This should include more effective design responses to site features, land uses on adjoining properties, and environmental impacts— than the development standards of the underlying zone would produce without adjustment. PD zoning shall be approved only in conjunction with derived long-term community benefits and where the project can help achieve the vision, goals, and policies of the General Plan. The applicant in this instance has proposed to include a PD Overlay to join the property located at 1144 Chorro Street (APN: 002-427-012) with the existing Downtown Centre property (APN: 002-427-016, 002-427-014, 002-427-015), allowing the residential density of the Downtown Centre to be completely utilized in the new building3, as seen in Figure 2. Through the PD Overlay the project proposes to meet three of the Mandatory Project Features (§17.48.060) by providing: a) Affordable Housing: A minimum of 25% moderate-income; and b) Energy Efficiency: LEED Silver rating; and c) Public Amenity: Guarantee long-term maintenance of a significant public plaza on the Downtown Centre site. Previous Advisory Body Actions 1. November 26, 2018 Cultural Heritage Committee (CHC) Review. The CHC reviewed the proposed project for consistency with the Historic Preservation Guidelines and Secretary of the Interior’s Standards. The CHC, with a vote of 7:0:0, provided eight directional items to the applicant to address specific concerns related to building and site design (Attachment B, CHC Staff Report and Meeting Minutes). 2. December 3, 2018 the Architectural Review Commission (ARC) Review. The ARC reviewed the proposed project for consistency with the Community Design Guidelines. The ARC, with a vote of 6:0:1, provided six directional items to the applicant to address specific concerns related to building and site design (Attachment C, ARC Staff Report and Meeting Minutes). The project plans as attached to this report have responded to some of the directional items, staff will provide a more detailed analysis of how directional items are addressed once an application has been deemed complete. 3 Zoning Regulations §17.70.040.B.1 Density Transfer. PD Overly Zone. Development potential may be transferred within the area covered by a planned development (PD) overlay zone, in conformance with the requirements of Chapter 17.48: Planned Development (PD) Overlay Zone. Figure 2: Vicinity Map, Red line indicates PD Overlay Boundary, hatch marks indicated project development site. Packet Pg. 175 Item 13 Next Development and Advisory Body Review Steps Should Council provide comments for the project to continue; the next step after all application materials are submitted and the project applications are deemed complete, and environmental review has been conducted pursuant to CEQA, further public hearings will be scheduled before the CHC and ARC. The CHC and ARC recommendations will be provided to the Planning Commission (PC). The PC will review the project as then proposed as well as the associated entitlements for consistency with the General Plan, Zoning Regulations, and applicable City development standards and guidelines, with a recommendation to City Council for final action. Staff Analysis Since the adoption of Ordinance No. 1509 (2007 Series)4, several projects have been considered for increased building heights above the 50-foot limit. However, of the projects that have received said entitlements, a majority of them have been revised to reduce the maximum height below 50 feet. The only other active project which received an entitlement to allow a height over 50 feet has not yet been constructed (San Luis Square - 60 feet maximum height). The applicant’s proposal to satisfy the Community Benefits Policy Objectives and Mandatory Project Features has been determined by staff to be consistent with the intent of the Zoning Regulations. A discussion of this analysis is below under the policy section. Notably, the PC or the City Council may prioritize some of the other Community Benefits identified in the Zoning Regulations to further the goals of the Downtown Core (Attachment D, Community Benefits Policy Objectives) in addition to what has been proposed by the project. Policy Context The City’s General Plan provides several policies regarding Downtown development. A more detailed discussion and initial analysis of the proposed project in regard to these policies has been provided as attached to this report (Attachment E – Policy Context). Public Engagement Consistent with the City’s Public Engagement and Noticing (PEN) Manual and the City’s Municipal Code, the project was noticed per the City’s notification requirements for Development Projects. Newspaper legal advertisements were posted in the Tribune ten days prior to each advisory body meeting (New Times for City Council). Additionally, postcards were sent to both tenants and owners of properties located within 300 feet of the project site ten days before each public hearing. Public comment was provided to the advisory bodies through written correspondence and through public testimony at each of the hearings. CONCURRENCE The project entitlements are currently under review by the various City Departments to ensure that staff has adequate information for a complete application to evaluate the project and identify any conflicts with City standards or guidelines. All City Departments will be providing comments that will be incorporated into the staff reports and recommended resolution/ordinance as conditions of the project. 4 Ordinance No. 1509 (2007 Series). An Ordinance of the City Council of San Luis Obispo Amending Section 17.42 of the Zoning Regulations Increasing Building Height and Intensity Limits in the Downtown – Commercial Zone. Packet Pg. 176 Item 13 ENVIRONMENTAL REVIEW As this is an initiation with no action regarding project approval to be provided, environmental review is not required at this time. The required level of environmental review will be addressed through an initial study as required for the Planned Development Overlay Rezone and in compliance with CEQA. FISCAL IMPACT Budgeted: Yes Budget Year: N/A Funding Identified: No Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A State Federal Fees Other: Total Per policy, Development Service fees are based on 100% cost recovery. As this is an initiation with no action to be provided, no fiscal impact will occur. ALTERNATIVE 1. Deny the consideration of the application related to the Mandatory Project Features and/or the Community Benefit Policy Objects chosen for the project by the applicant. The Council should provide direction to the applicant clearly identifying the priority Mandatory Project Features and/or the Community Benefit Policy Objects that the application should incorporate. 2. Continue consideration of the application to a future date. The Council can continue review of the project to a future meeting. If this alternative is taken, the Council should provide direction to staff regarding additional information needed to provide further direction regarding the project application. This alternative is not recommended because the scope of the Council's current review is limited to initiation, and the project will be sche duled for final review by the City Council following the typical PD Overlay application procedures. Packet Pg. 177 Item 13 Attachments: a - Project Plans b - CHC Report and Meeting Minutes c - ARC Report and Meeting Minutes d - Community Benefits Policy Objectives e - Policy Context Packet Pg. 178 Item 13 Action Update CITY OF SAN LUIS OBISPO CITY COUNCIL Tuesday, September 17, 2019 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, month day, 2019 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Mayor Harmon. CLOSED SESSION City Attorney Dietrick indicated that the Council meet in Closed Session to discuss two separate items of pending litigation for right of way near Sueldo Street, Tract 703 and Tract Map 3009. Council provided direction but no further reportable action was taken. PRESENTATIONS 1. RIDE SHARE WEEK San Luis Obispo Council of Governments representative Peter Williamson provided a presentation regarding Rideshare Week 2019." 2. PROCLAMATIONS NATIONAL MUSEUM DAY Mayor Harmon presented a Proclamation to Charles Jordan, Board President, San Luis Obispo Railroad Museum, Ruta Saliklis, Executive Director, San Luis Obispo Museum of Art and Thomas Kessler, Executive Director, History Center of San Luis Obispo County declaring Saturday, September 21, 2019 as “National Museum Day.” RAIL SAFETY WEEK Mayor Harmon presented a Proclamation to Anna Devers, Public Affairs and Planning for San Luis Obispo Council of Governments declaring September 22 – 28, 2019 as “Rail Safety Week.” CONSENT AGENDA 3. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5-0 to waive reading of all resolutions and ordinances as appropriate. Action Update – City of San Luis Obispo City Council Meeting of September 17, 2019 Page 2 4. DRAFT MINUTES REVIEW - SEPTEMBER 3, 2019 CITY COUNCIL MEETING CARRIED 5-0, to approve the minutes of the City Council meeting held on September 3, 2019. 5. ADOPTION OF AN ORDINANCE APPROVING LOCAL AMENDMENTS TO THE ENERGY CODE; AND ADOPTION OF AN ORDINANCE IMPLEMENTING A CARBON OFFSET REQUIREMENT WITH AN IN-LIEU FEE OPTION Recommendation: Pulled by Staff and the Council did not discuss or take action on this item. 6. MEADOW PARK PEDESTRIAN BRIDGES REPLACEMENT PROJECT, SPECIFICATION NO. 1000017 CARRIED 5-0, to 1. Adopt Resolution No. 11045 (2019 Series) entitled “A Resolution of the Council of the City of San Luis Obispo, California approving an Amendment to the Meadow Park Pedestrian Bridge Replacement Project and related budgetary appropriations;” 2. Award a construction contract to R. Burke Corporation in the amount of $199,164 for the Meadow Park Pedestrian Bridges Replacement Project); and 3. Approve a transfer of $271,164 from the Parks Major Maintenance – Annual Asset Maintenance Account to the Meadow Park Pedestrian Bridges Replacement project to fund the project and construction support services. 7. RESPONSE TO THE 2018-19 GRAND JURY REPORT ON FIRE RISK MANAGEMENT CARRIED 5-0, to authorize the City Manager to submit a letter of response to the report on behalf of the City Council, as required by the Grand Jury. 8. MARSH STREET BRIDGE REPLACEMENT, SPECIFICATION No. 90480 CARRIED 5-0, to approve the construction documents for the “Marsh Street Bridge Replacement, Specification No. 90480” project, authorize staff to advertise for bids, and authorize the City Manager to award a construction contract to the lowest responsible bidder following a selection process conforming to the Caltrans Local Assistance Procedures Manual. 9. APPROPRIATE ZONE 9 FUNDING FOR MID-HIGUERA BYPASS PROJECT FINAL DESIGN CARRIED 5-0, to receive $90,000 from the County of San Luis Obispo, and as recommended by the Flood Control and Water Conservation District Zone 9 County Advisory Committee, appropriate it to fund the final design services for Mid-Higuera Bypass Project. Action Update – City of San Luis Obispo City Council Meeting of September 17, 2019 Page 3 10. FIREWALL REPLACEMENT PROJECT CARRIED 5-0, to authorize the Administration and Information Technology Department to advertise for the purchase of a firewall replacement for the City’s current end of life firewall hardware; and authorize the City Manager to award a contract if the selected quote is within the approved project budget of $186,500. 11. ORDINANCE ADOPTION - COMPREHENSIVE UPDATE TO THE CITY’S SIGN REGULATIONS, INCLUDING REPEAL OF MUNICIPAL CODE SECTION 2.40.070 CAMPAIGN SIGNS) AND REPEAL AND REPLACEMENT OF MUNICIPAL CODE CHAPTER 15.40 (SIGN REGULATIONS) CARRIED 5-0, to adopt Ordinance No. 1667 (2019 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California repealing Municipal Code Section 2.40.070 Campaign Signs) and repealing and replacing Title 15, Chapter 15.40 of the Municipal Code (Sign Regulations) to update the regulations for best practices, clarify terms and process, enhance graphics, and ensure consistency with The Reed v. Town of Gilbert U.S. Supreme Court Decision, as represented in the staff report and attachments dated August 20, 2019 (Sign Regulations Update)” 12. ADVERTISE COUNCIL CHAMBER AUDIO/VIDEO REPLACEMENT PROJECT, SPECIFICATION NO. 1000120 CARRIED 5-0, to adopt Resolution No. 11046 (2019 Series) entitled, “A Resolution of the Council of the City of San Luis Obispo, California Approving an amendment to the 2019-20 Budget Allocation and Capital Improvement Plan;” and approve contract documents for Council Chamber Audio/Video Replacement project; and authorize staff to advertise for bids; and authorize the City Manager to award a contract if the lowest responsible bid is within the approved project budget of 200,000 from the City’s share of the Public, Educational and Government (PEG) funds. PUBLIC HEARING ITEMS AND BUSINESS ITEMS 13. PUBLIC HEARING - 1144 CHORRO STREET - INITIATION OF A PROJECT TO CONSTRUCT A SIX-STORY MIXED-USE BUILDING CONSISTING OF APPROXIMATELY 30,000 SQUARE FEET OF COMMERCIAL/OFFICE SPACE AND 50 RESIDENTIAL DWELLING UNITS CARRIED 3-0-2 (COUNCIL MEMBER GOMEZ AND VICE MAYOR PEASE RECUSED) to direct staff to proceed with processing of the applications with the following considerations: 1. The application of a Planned Development (PD) Overlay zone is an appropriate method for implementation of the City Council’s goal for higher density housing in the Downtown; and 2. The Mandatory Project Features required for consideration of establishment of the PD Overlay zone and the Community Benefits Policy Objectives required for consideration of the proposed building height of 75 feet are appropriate and in alignment with the scope of the project given the priority that the City Council has placed on new housing in the Downtown. 3. Direct staff to move forward with priority processing of the project through the entitlement process, including environmental review pursuant to the California Environmental Quality Act CEQA). Action Update – City of San Luis Obispo City Council Meeting of September 17, 2019 Page 4 With the following comments: Community Benefit - Mode shift. Proforma to make sure there is no less than 25% affordable housing. Support for allocating the remaining density units in the downtown. 14. RESPONSE TO THE 2018-19 GRAND JURY REPORT ON AFFORDABLE HOUSING CARRIED 5-0 to authorize the City Manager to submit a letter of response to the report on behalf of the City Council, as required by the Grand Jury. ADJOURNMENT The meeting was adjourned at 8:50 p.m.