HomeMy WebLinkAboutItem 4a. Downtown Flexible Density Program (CODE-0017-2023)
PLANNING COMMISSION AGENDA REPORT
SUBJECT: REVIEW OF A DRAFT ORDINANCE AMENDING TITLE 17 (ZONING
REGULATIONS) OF THE MUNICIPAL CODE TO IMPLEMENT HOUSING ELEMENT
PROGRAM 2.15 AND POLICY 6.6 TO PROVIDE A DOWNTOWN FLEXIBLE DENSITY
PROGRAM.
BY: Kye Bell, Housing Coordinator FROM: Tyler Corey, Deputy Director
Phone Number: (805) 781-7524 Phone Number: (805) 781-7169
Email: kbell@slocity.org Email: tcorey@slocity.org
PROJECT LOCATION: Downtown Core FILE NUMBER: CODE-0017-2023
RECOMMENDATION
Adopt a draft Resolution recommending the City Council introduce and adopt an
Ordinance amending Title 17 (Zoning Regulations) of the Municipal Code to incorporate
the Downtown Flexible Density Program for qualifying residential projects.
SUMMARY
The concept of the flexible density program was specifically identified throughout the 2020
Housing Element Update as an opportunity to incentivize housing production within the
City’s urban core and support the production of smaller residential units (Housing Element
Program 2.151 & Policy 6.62). The main goals of the program are to help address the local
housing demand by facilitating increased higher density residential infill development in
the downtown area near employment centers, incentivizing smaller units, and diversifying
the City’s housing stock.
The City Council has tasked the Community Development Department with introducing
the Downtown Flexible Density Program as part of the 2021-23 Major City Goal work
program for Housing. Council provided direction to conduct outreach efforts with
stakeholder groups and the community to incorporate housing policy initiatives that
encourage smaller units.
1 Housing Element Program 2.15: Evaluate a flexible density pilot program and initiate an update of the
Zoning Regulations and Community Design Guidelines to incorporate flexible density development options
in Downtown Core and portions of Upper Monterey and Mid-Higuera Special Focus Areas to support the
production of 50 smaller residential units (150 to 600 square feet) per year during the planning period.
2 Housing Element Policy 6.6: Consistent with the City’s goal to stimulate higher density infill where
appropriate in the Downtown, Upper Monterey, and Mid-Higuera Special Focus Areas, the City shall
consider changes to the Zoning Regulations that would allow for flexible density standards that support the
development of smaller apartments and efficiency units.
Meeting Date: 2/22/2023
Item Number: 4a
Time Estimate: 90 Minutes
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1.0 COMMISSION'S PURVIEW
The Planning Commission’s role is to review the proposed Zoning Regulations
amendment for consistency with the City’s Housing Element and State Law and make a
recommendation to the City Council.
2.0 PROJECT INFORMATION
2.1 Background
The concept of the Flexible Density Program began in 2018 as part of the Comprehensive
Update to the City’s Zoning Regulations (Title 17 of the Municipal Code). The City’s
Consultant working on the update (MIG Consultants) provided a White Paper regarding
the concept of Flexible Density. This concept was memorialized in the 2020 Housing
Element Update as an opportunity to incentivize housing production within the City’s
urban core and support the production of smaller residential units (Program 2.15 & Policy
6.6).
Housing is an essential element to a healthy downtown district. Providing for housing in
the commercial core of a community generates a constant flow of f oot traffic to support
nearby retailers, services, restaurants, and other businesses. The concentrated mix of
retail, office, and entertainment typical of a downtown locates residents within walking
distance of most daily activities. The Downtown Flexible Density Program Incorporates a
higher density of residential uses that creates a more vibrant, desirable downtown
economy.
2.2 Applicability
The General Plan Land Use Element Figure 4 (Downtown Planning Area and Core)
establishes the boundaries of the Downtown Core and Planning Area. The Downtown
Core includes three zoning designations, Downtown Commercial (C-D), Retail
Commercial (C-R), and Public Facilities (PF). It should be noted that not all C -D zoned
properties are located within the Downtown Core (as shown in Figure 1 below).
To qualify under the Downtown Flexible Density Program, a subject property will need to
be located within the Downtown Core and within either the C-D or C-R zoning districts.
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Figure 1: Map of the Downtown Core Boundaries
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2.3 Program Overview
The City’s existing development standards calculate residential capacity through
fractional density allocations. While Density Units (du) are measured based on the area
of a lot per acre (du/ac), the size of a dwelling unit is also a factor in the density allocation3.
Studio and one-bedroom dwellings less than 600 square feet equal 0.50 du, while a 2-
bedroom is equal to 1.0 du. Table 1 describes the residential capacity of an example
property under existing density standards.
Table 1 – Residential Capacity Under Existing Density Standards
C-D or C-R
zone
Lot Area
(sf*) Acres Density
Allowance
Available
Density
Maximum
Number of Units
Less than 600 sf
Example
Property 10,000 0.23 36 Density
Units/ Acre 8.26** 16
*sf = square feet
**Density allocations round only to the nearest hundredth.
As part of the Downtown Flexible Density Program, density standards are proposed to be
reduced from 0.5 Density Units to 0.0 Density Units for qualifying dwelling units that are
less than 600 square feet in size (limited to studio or one-bedroom configurations), within
the Downtown Core. The only limit to the number of qualifying units under the proposed
program would be determined by existing development standards such as maximum
building area which is referred to as the maximum Floor Area Ratio.
Standards for building intensity for non-residential uses such as mixed-use, commercial,
and industrial development are measured by floor area ratios. Floor area ratio (FAR) is
the relationship between the total amount of usable floor area in a structure and the total
area of the lot on which a structure is built4. The higher the ratio, the greater intensity of
development. In the case of mixed-use developments5, density standards are only applied
to the residential component of a project, while FAR standards are applied to the entire
structure or development on the property. Table 2 provides a summary of the applicable
development standards for properties within the Downtown Core.
3 Zoning Regulations Section 17.70.040.A.1 – Density Calculation – General. Density Units are
calculated based on the net area of a property subject to thresholds established per zone … different size
dwellings have density unit values as follows: (a) Studio and one -bedroom dwellings less than 600 square
feet = 0.50 unit; (b) One-bedroom dwellings between 601 and 1,000 square feet = 0.66 unit; (c) Two -
bedroom dwelling = 1.00 unit; (d) Three-bedroom dwelling = 1.50 units; (e) Dwelling with four or more
bedrooms = 2.00 units.
4 Zoning Regulations 17.158.017. F Definitions. Floor Area Ratio (FAR) The net floor area of a building
or buildings on a lot divided by the lot area.
5 Zoning Regulations Section 17.156.028- Mixed-Use Development. A development that combines both
nonresidential and residential uses, where residential uses are typically located above or behind the
commercial.
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Table 2 – Existing Development Standards for the Downtown Core
Development Standards C-D
Downtown Commercial
C-R
Retail Commercial
Maximum Density 36 units/acre
Minimum Street Yard No street setback
Minimum Other Yard As provided in zone of adjacent lot, or Edge Conditions
Maximum Building Height 50-75 feet6 45 feet
Maximum Floor Area Ratio 3.0 – 4.0 FAR; varies with
building height7 3.0 FAR
Maximum Lot Coverage 100%
Minimum Lot Area (sf*) 3,000 9,000
Minimum Required Parking Half the requirement of
Table 3-48
Table 3-4: Parking
Requirements by Use
*sf = square feet
The proposed Program would modify the allocation of residential capacity from density
units per acre to FAR allowances of an individual property as the threshold for the
maximum number of qualifying units. Table 3 outlines and example residential capacity
under the Program by using FAR for qualifying units with an average size of 550 square
feet (excluding building area reserved for ground floor commercial).
Table 3 - Residential Capacity Under the Downtown Flexible Density Program
C-D or C-
R zone
Lot Area
(sf*)
3.0 FAR
(sf)
Ground
Floor
Commercial
(sf)
Remaining
Building
Area (sf)
Maximum
Number of Units
w/ Average size
of 550 sf
Example
Property 10,000 30,000 10,000 20,000 36 units
*sf = square feet
6 Zoning Regulations Section 17.32.020. Table 2-18 (C-D Zone Development Standards). Maximum
Building Height. Maximum height may be increased up to 75 feet with the provision of defined community
benefits, as set forth in Section 17.32.030.E (Maximum Building Height in C-D Zone).
7 Zoning Regulations Section 17.32.020. Table 2-18 (C-D Zone Development Standards). Floor Area
Ratio. 3.0 – maximum allowed for buildings up to 50 feet in height. 3.75 – maximum allowed for buildings
approved greater than 50 feet in height. 4.0 – maximum allowed for approved buildings over 50 feet in
height with transfer of development credits for open space protection or historic preservation. See also
Section 17.70.060 (FAR Measurement and Exceptions)
8 Zoning Regulations Section 17.72.030.D – Minimum Number of Spaces Required in the Downtown
Core. the downtown-commercial (C-D) zone, the following parking standards and incentives shall apply: …
(3) Residential uses, hotels and motels, and bed and breakfast inns: One -half that required in Table 3-4:
Parking Requirements by Use.
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As described by Housing Element Program 2.15 and Policy 6.6, the Program is intended
to incentivize the construction of smaller housing units within the City's Downtown Core .
Specifically, the program includes incentives to increase residential density, partially
reduce parking requirements, and exempt applicability of the Inclusionary Housing
Ordinance for qualifying units. The program also expands ground floor residential use
prohibition and clarifies density bonus applicability. Importantly, the program does not
modify the recently implemented streamlined development review process or any site
development standards. Finally, the program includes a sunset provision. A summary
of the key features of draft ordinance has been provided below for Planning Commission’s
consideration.
Summary of Draft Ordinance Key Features:
1. Density Incentive. Reduce residential density standards from 0.5 Density Units to
0.0 Density Units for qualifying dwelling units that are less than 600 square feet in
size (limited to studio or one-bedroom configurations), within the Downtown Core.
Housing units larger than 600 square feet in size shall be subject to standard
density requirements.
2. Ground Floor Uses. Prohibit residential dwellings on the ground floor for properties
in the C-R zone within the Downtown Core to be consistent with existing
development requirements in the C-D zone.
3. Applicability to Downtown Core. Establish the Downtown Core as the initial
boundary for properties eligible under the program. The Downtown Core includes
properties zoned C-D and C-R.
4. Parking Requirement Incentive. Reduced parking requirements in the C-R zoned
portion of the Downtown Core for qualifying dwelling units to match the current C-
D zone parking requirements (1 space for every two units, plus 1 guest space for
every 10 units). This parking reduction in the C-R zone would be limited only to
qualifying units. All other units larger than 600 square feet, and all commercial
space shall be subject to standard parking requirements in the C-R zone. No
changes are proposed to parking requirements in the C -D zone. Residents within
the Downtown Core are eligible to participate in the Downtown Residential
Overnight Parking Program.
5. Inclusionary Housing Exemption Incentive. Exempt qualifying dwelling units from
Inclusionary Housing Requirements as an incentive for property owners and
developers to increase the number of residential units within the Downtown Core
under the Program. Standard Inclusionary Housing Requirements shall apply to
units larger than 600 square feet, and all new commercial space.
6. Density Bonus Projects. Projects which include a request for a density bonus in
accordance with Government Code Section 65915 (Density Bonus Law) are not
eligible for the Downtown Flexible Density Program. Density Bonus Law provides
developers with powerful tools to encourage the development of affordable
housing. The Downtown Flexible Density Program is designed as an alternative
option to promote housing production in the commercial core of the community.
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Developers may choose to pursue an application to address residential capacities
through density bonus or flexible density, not both.
7. Program Duration. Program is set to expire on January 1, 2029, consistent with
the current Housing Element Cycle, or until 500 qualifying units are entitled or
permitted under this program, whichever occurs first.
8. Development Review Process. No changes to the development review process
are proposed.
9. Site Development Standards (i.e. FAR, Lot Coverage, Setbacks, and Height) Other
than density thresholds and parking requirements in the C-R zone, no changes to
development standards are proposed as part of the Program.
3.0 PROJECT ANALYSIS
3.1 Consistency with the General Plan
Housing Element: The General Plan Housing Element sets forth the City’s policies and
programs for meeting existing and future housing needs, for preserving and enhancing
neighborhoods, and for increasing affordable housing opportunities. It is the primary
policy guide for local decision-making on all housing matters.
The Housing Element (HE) identifies key policies related to housing production
throughout the community to help meet the Regional Housing Needs Allocation (RHNA)
plan production targets and support residential infill development by promotin g higher
residential density where appropriate (Policy 6.8). The HE also encourages prioritizing
residential infill development and densification within the City Limits over considerations
of new annexations of land (Program 6.15).
The concept of the flexible density program was memorialized in the 2020 Housing
Element Update as an opportunity to incentivize housing production within the City’s
urban core and support the production of smaller residential units (Program 2.15 & Policy
6.6).
Land Use Element: The General Plan Land Use Element represents a blueprint for the
future of the City of San Luis Obispo and sets forth a pattern for the orderly development
of land within the City's planning area. The Element describes the expected level of
population growth resulting from construction of housing units included in the plan,
including new commercial and industrial development.
The Land Use Element (LUE) of the City’s General Plan includes the Land Use Diagram,
as well as policies that directly shape land use decisions and the resulting physical form
of the City. The following summarizes key goals in the LUE related to downtown form:
1. Where appropriate, create compact, mixed-use neighborhoods that locate
housing, jobs, recreation, and other daily needs close to one another, while
protecting the quality of life in established neighborhoods.
2. Maintain a compact urban form.
3. Preserve the City’s heritage of historic buildings and places.
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4. Provide a variety of business services and housing in downtown.
5. Provide a safe and pleasant place to walk and ride a bicycle, for recreation and
other daily activities.
Downtown is the community’s urban center serving as the cultural, social, entertainment,
and political center of the City (LUE Policy 4.1). Downtown is not only a commercial
district, but also a neighborhood. Its residential uses contribute to the character of the
area, allow a 24-hour presence which enhances security and help the balance between
jobs and housing in the community (LUE Policy 4.2). The LUE also encourages the
development of downtown housing that minimizes the need for automobile use and
minimizes the storage of vehicles in surrounding neighborhoods (LUE Policy 2.9).
The LUE includes policies to modify the City’s Zoning Regulations to allow efficiency units
and variable density within the Downtown Core (LUE Policy 4.28). LUE Program 2.15
directs the City to evaluate alternatives to the current maximum density thresholds,
height, parking, and setback standards that currently restrict residential intensity. Program
2.16 provides direction to the City to consider using portions of City-owned parking lots
and structures for residential parking.
The Land Use Element policy related to residential growth (LUE 1.11.2) states that the
City’s housing supply shall grow no faster than one percent per year, on average, based
on established thresholds (LUE Table 3). Affordable Dwellings restricted to residents with
extremely low, very low, low, or moderate incomes, new dwellings in the Downtown Core,
and legally established accessory dwelling units are exempt from these regulations
(Section 17.144.020.D).
3.2 Consistency with the Downtown Concept Plan
The Downtown Concept Plan is the community’s vision for how downtown San Luis
Obispo should be developed over the next 25 years. The concept plan is not a regulatory
document and is intended to provide guidance for development projects and public
improvements downtown. The Plan promotes a compact urban core, additional housing
opportunities, reduce auto travel by providing services, jobs, and housing in proximity to
each other.
Residential uses downtown are intended to provide a range of multi-unit housing types to
help meet the vision of a more compact and walkable downtown living environment. The
Plan includes eight Planning Principles intended to guide the development in downtown .
Principle 3 (Variety in Form and Function) encourages a variety of compatible buildings,
uses, activities, and housing types for an inclusive and vital downtown by encouraging
flexible mixed-use development, a variety of housing options, and to reduce auto travel
by providing jobs and housing in proximity to each other. Principle 7 (Compatible Design)
encourages higher-density projects, smaller dwelling units, and other innovative
residential solutions
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3.3 Consistency with the Access and Parking Management Plan
The draft Access and Parking Management Plan sets a path for modernizing parking
management and maximizing use of available land. It makes it easier for drivers to find
available parking, which reduces traffic congestion and creates safer streets. The City’s
Parking Services Division operates roughly 2,600 public parking spaces downtown,
spread across five off-street surface lots, three parking structures, and street parking
controlled through a variety of time limits, per-hour pricing, permits, and curb use
restrictions (loading zones). A widely recognized best practice in parking management
involves the comparison of actual parking utilization rates with an 85 percent occupancy
threshold. Overall parking occupancy for all on and off -street spaces in the downtown
study area was almost always well below the 85 percent occupancy threshold during the
study period, except for Farmer’s Market nights.
Parking Services offers a variety of different parking permits to meet the needs of various
user groups. The Downtown Residential Overnight Parking (DROP) permits cost $375
per quarter and are valid for parking on the third and fourth floors of the Marsh Street and
Palm Street structures, day and overnight, which will be available to qualifying units under
the Downtown Flexible Density Program. In the third quarter of 2022, only 16 parking
passes were sold to downtown residences. The Access and Parking Management Plan
also includes policies for decreasing the permit rates for qualifying low-income
households.
3.4 Consistency with the Active Transportation Plan
According to the City’s 2021 Active Transportation Plan, the City has a jobs-to-housing
ratio of 2.5:1, where many San Luis Obispo workers commute into the City from outside
areas, increasing the City’s weekday population. Most employed San Luis Obispo
residents work within the City, with nearly 60% reporting a daily commute time of less
than 15 minutes.
The Active Transportation Plan encourages increasing infill housing within the City’s
urban setting to reduce commute times and alleviate single occupant vehicle
dependency. Promoting housing downtown will help reduce traffic gridlock and urban
sprawl, while also increasing foot-traffic along local storefronts to increase the economic
vitality of the downtown commercial core.
3.5 Consistency with the Climate Action Plan
The City of San Luis Obispo’s 2020 Climate Action Plan (CAP) for Community Recovery
set one of the nation’s most ambitious climate action goals: community-wide carbon
neutrality by 2035 (CAP Work Program). The Flexible Density Program is specifically
included in the CAP Pillar for Connected Communities as Foundational Action No. 5.1.
Transportation is the single largest source of greenhouse gas emissions (GHG) in San
Luis Obispo, due primarily to the use of single -occupancy fossil-fueled vehicles. By
continuing to build a safe pedestrian and bicycle network, producing more housing in key
locations, enhancing public transit, supporting electric vehicle infrastructure, and
investing in mobility innovations, the City can reduce GHG emissions from vehicle trips
while also reducing individual mobility costs. Construction of new housing near significant
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transportation nodes and corridors reduces private vehicle trips and associated GHG
emissions and is therefore a fundamental concept in sustainable housing development.
4.0 PUBLIC ENGAGEMENT
According to the Public Engagement and Noticing (PEN) manual, the process for the
ordinance adoption would typically fall under inform/consult because the program is
specifically identified in the Housing Element as a Policy and Program, and included as
a work program item in the 2021-23 Financial Plan Housing & Homelessness Major City
Goal. However, the public engagement approach for this program followed the
consult/collaborate approach due to the sensitivity of downtown and interest in housing
needs for the community. A more detailed overview of the public engagement efforts are
provided in Attachment B (Public Engagement Summary). The engagement efforts are
summarized below;
Consultations were held with the Planning Division, Utilities Department,
Transportation & Parking Divisions, for collaboration and coordination on the
components of the Draft Ordinance.
The Draft Ordinance was reviewed by the City’s Fire Department, Utilities
Department, Building Division, Engineering Division, Parking Division, and
Transportation Division.
The Program was posted on Open City Hall to provide a community forum
discussion regarding increasing housing opportunities downtown. The survey has
received 304 responses (58% in favor, 42% opposed). All public comments and
recommendations from the survey are summarized in Attachment B.
A news release was published on January 23, 2023. Interviews have been
provided for: The Tribune, Cal Poly Mustang News, New Times, KSBY, and the
Agenda Breakdown podcast.
Four stakeholder group interviews were conducted with 12 different interest
groups. One additional stakeholder group is scheduled for February 17 th. All
stakeholder recommendations are summarized in Attachment B.
A presentation was provided for the Downtown Association (February 14th),
additional presentations are scheduled for the Chamber of Commerce (February
16th), the Regional Housing Team (February 16th), and the Developer’s
Roundtable (March 1st) to introduce the concepts of the program and facilitate
discussion.
Public notice of this hearing has been published in a widely circulated local newspaper,
and hearing agendas for this meeting have been posted at City Hall, consistent with
adopted notification procedures. Email notices have been provided for each public
meeting to those on the interested parties list.
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5.0 ENVIRONMENTAL REVIEW
Pursuant to CEQA Guideline 15164, an addendum to the Initial Study / Negative
Declaration for the Zoning Regulations Update (GENP -0327-2017) was prepared for the
proposed Downtown Flexible Density Program (Attachment A, Exhibit A). The addendum
concluded the following:
i. Pursuant to Section 15162 of the State CEQA Guidelines , a subsequent
environmental impact report is not required because:
a) The project changes do not result in new or more severe environmental
impacts.
b) The circumstances under which the project is undertaken will not require
major changes to the adopted Negative Declaration , and
c) The modified project does not require any new mitigation measures.
ii. The proposed Downtown Flexible Density Program, including proposed
amendments identified in this Addendum, would make revisions, additions,
corrections and clarifications to various sections of the Zoning Regulations to
ensure consistency and successful implementation of the Housing Element.
The proposed Downtown Flexible Density Program and associated
amendments to Municipal Code Title 17 are consistent with the scope of the
previously approved Comprehensive Zoning Regulations Update.
iii. The changes are consistent with State Law, the City of San Luis Obispo
Climate Action Plan, and the City of San Luis Obispo General Plan.
6.0 OTHER DEPARTMENT COMMENTS
Staff comments from Public Works, Utilities, Transportation, Parking, Fire, and Building
and Safety, have been incorporated into the draft Downtown Flexible Density Program.
It should be noted that all proposed residential projects must comply with all objective City
policies, thresholds of significance, development standards, and design standards for all
City departments as established in, but not limited to, the General Plan, City Standard
Specifications and Engineering Standards, Building and Fire Code Requirements, Active
Transportation Plan, Transportation Impact Study Guidelines, Climate Action Plan,
Community Design Guidelines and the City’s Municipal Code.
7.0 ALTERNATIVES
7.1 Continue the project. An action continuing the project should include direction to
the staff on pertinent issues.
8.0 ATTACHMENTS
A - Draft Resolution with Exhibit A (Addendum) and Exhibit B (Draft Council Ordinance)
B - Public Engagement Summary
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RESOLUTION NO. PC-XXXX-23
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
SAN LUIS OBISPO RECOMMENDING THE CITY COUNCIL INTRODUCE
AND ADOPT AN ORDINANCE AMENDING TITLE 17 (ZONING
REGULATIONS) OF THE MUNICIPAL CODE TO INCLUDE
INCORPORATE A DOWNTOWN FLEXIBLE DENSITY PROGRAM FOR
QUALIFYING RESIDENTIAL PROJECTS. PROJECT IS CONSISTENT
WITH THE PREVIOUS MITIGATED NEGATIVE DECLARATION FOR
THE 2018 COMPREHENSIVE ZONING REGULATIONS UPDATE AS
REPRESENTED IN THE PLANNING COMMISSION AGENDA REPORT
AND ATTACHMENTS DATED FEBRUARY 22, 2023 (DOWNTOWN
CORE; CODE-0017-2023)
WHEREAS, on February 5, 2019, the City of San Luis Obispo adopted a
comprehensive update of the Zoning Ordinance (2018 Zoning Ordinance); and
WHEREAS, on November 17, 2020, the City Council of the City of San Luis Obispo
conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San
Luis Obispo, California on November 17, 2020, for the purpose of final adoption of the
sixth cycle update to the General Plan Housing Element that included Program 2.15 and
Policy 6.6 that directed staff to create a Downtown Flexible Density Program for
consideration; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California on February 22, 2023, for the purpose of considering the various amendments
to Title 17 (Zoning Regulations) of the Municipal Code to implement the Downtown
Flexible Density Program; and
WHEREAS, notice of said public hearing were made at the time and in the
manner required by law; and
WHEREAS, the Planning Commission has duly considered all evidence,
including the testimony of the applicant, interested parties, and the evaluation and
recommendations by staff, presented at said hearing.
NOW, THEREFORE, BE IT RESOLVED , by the Planning Commission of the
City of San Luis Obispo as follows:
SECTION 1. Findings. The Planning Commission does hereby recommend the
City Council introduce and adopt the proposed Downtown Flexible Density Program for
qualifying residential projects based on the following findings:
1. The proposed amendments to Title 17 to implement the Downtown Flexible
Density Program will not cause significant health, safety, or welfare concerns since
the amendments are consistent with the General Plan and directly implement City
goals and polices.
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Planning Commission Resolution No. PC-XXXX-23
CODE-0017-2023
Page 2
2. The proposed amendments to Title 17 of the Municipal Code are consistent with
the 6th Cycle Housing Element Program 2.15 which states “Evaluate a flexible
density pilot program and initiate an update of the Zoning Regulations and
Community Design Guidelines to incorporate flexible density development options
in Downtown Core and portions of Upper Monterey and Mid-Higuera Special Focus
Areas to support the production of 50 smaller residential units (150 to 600 square
feet) per year during the planning period.”
3. The proposed amendment to Title 17 of the Municipal Code are also consistent
with the 6th Cycle Housing Element Policy 6.6 which states “Consistent with the
City’s goal to stimulate higher density infill where appropriate in the Downtown,
Upper Monterey, and Mid-Higuera Special Focus Areas, the City shall consider
changes to the Zoning Regulations that would allow for flexible density standards
that support the development of smaller apartments and efficiency units.”
SECTION 2. Environmental Review. Pursuant to CEQA Guideline 15164, an
addendum to the Initial Study / Negative Declaration for the Zoning Regulations Update
(GENP-0327-2017) was prepared for the proposed Downtown Flexible Density Program.
The addendum concluded the following:
i. Pursuant to Section 15162 of the State CEQA Guidelines , a subsequent
environmental impact report is not required because:
a) The project changes do not result in new or more severe environmental
impacts.
b) The circumstances under which the project is undertaken will not require
major changes to the adopted Negative Declaration , and
c) The modified project does not require any new mitigation measures.
ii. The proposed Downtown Flexible Density Program, including proposed
amendments identified in this Addendum, would make revisions, additions,
corrections and clarifications to various sections of the Zoning Regulations to
ensure consistency and successful implementation of the Housing Element.
The proposed Downtown Flexible Density Program and associated
amendments to Municipal Code Title 17 are consistent with the scope of the
previously approved Comprehensive Zoning Regulations Update.
iii. The changes are consistent with State Law, the City of San Luis Obispo
Climate Action Plan, and the City of San Luis Obispo General Plan.
Based on the foregoing, the City Council does hereby adopt the Addendum to the Initial
Study Negative Declaration that was prepared for the Comprehensive Zoning Regulations
Update for the Downtown Flexible Density Program, as provided in Exhibit A.
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Planning Commission Resolution No. PC-XXXX-23
CODE-0017-2023
Page 3
SECTION 3 . Recommendation. The Planning Commission does hereby
recommend the City Council introduce and adopt an ordinance amending Title 17 (Zoning
Regulations) of the Municipal Code to include the Downtown Flexible Density Program
for qualifying residential projects as set forth in Exhibit B.
Upon motion of ______________________, seconded by
__________________ and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this 22nd day of February 2023.
___________________________
Tyler Corey, Secretary
Planning Commission
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EXHIBIT A
Addendum to the Initial
Study/Mitigated Negative Declaration
for the 2018 Zoning Regulations
Update, San Luis Obispo, California
FEBRUARY 2023
PREPARED FOR
City of San Luis Obispo
PREPARED BY
SWCA Environmental Consultants
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ADDENDUM TO THE INITIAL STUDY/MITIGATED NEGATIVE
DECLARATION FOR THE 2018 ZONING REGULATIONS
UPDATE, SAN LUIS OBISPO, CALIFORNIA
Prepared for
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
Attn: Kyle Bell, Housing Coordinator
Prepared by
SWCA Environmental Consultants
1422 Monterey Street, Suite C200
San Luis Obispo, CA 93401
(805) 543-7095
www.swca.com
SWCA Project No. 71167.04
February 2023
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Addendum to IS/MND for the 2018 Zoning Regulations Update
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CONTENTS
Introduction ..................................................................................................................... 1
Purpose of Addendum ..................................................................................................... 1
Project Revisions ............................................................................................................ 3
Minor Technical Changes to the MND............................................................................. 4
Basis for Addendum ...................................................................................................... 13
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INTRODUCTION
On February 5, 2019, the City of San Luis Obispo (City) adopted a Mitigated Negative Declaration
(MND; State Clearing House [SCH] #2013121019) for the Zoning Regulations Update (project)
and approved revisions to the Zoning Regulations that were focused on implementation of the
policies and programs in the City’s General Plan Land Use and Circulation Element (LUCE).
Specifically, the revisions included specifying density for dwelling units less than 600 square feet
in size as 0.50 density units, consistent with LUCE Policies 2.15 and 4.28. Since the Zoning
Regulations update was consistent with the 2014 LUCE, the MND tiered with and incorporated,
by reference, the City’s previously-certified Program Final Environmental Impact Report
(September 2014; FEIR; SCH #2013121019) prepared for the LUCE pursuant to State CEQA
Guidelines Sections 15150, 15152, and 15168. The City is now seeking minor revisions from what
was analyzed in the MND to amend the Zoning Regulations and revise the density for dwelling
units less than 600 square feet in size that are in the Downtown Core from 0.50 density units to
0.00 density units (see discussion below).
The project would apply to the Downtown Core (as identified in the LUCE) on parcels zoned C-D
(Downtown Commercial) and C-R (Retail Commercial), see Figure 1 below.
PURPOSE OF ADDENDUM
Pursuant to Section 21166 of CEQA and Section 15162 of the State CEQA Guidelines, when a
lead agency has adopted an MND for a project, a subsequent MND does not need to be prepared
for the project unless the lead agency determines that one or more of the following conditions are
met:
1. Substantial project changes are proposed that will require major revisions of the previous
MND due to the involvement of new significant environmental effects or a substantial
increase in the severity of previously identified significant effects;
2. Substantial changes would occur with respect to the circumstances under which the
project is undertaken that require major revisions to the previous MND due to the
involvement of new significant environmental effects or a substantial increase in the
severity of previously identified significant effects; or
3. New information of substantial importance that was not known and could not have been
known with the exercise of reasonable diligence at the time the previous MND was
adopted shows any of the following:
a. The project will have one or more significant effects not discussed in the previous
MND;
b. Significant effects previously examined will be substantially more severe than
identified in the previous MND;
c. Mitigation measures or alternatives previously found not to be feasible would in
fact be feasible, and would substantially reduce one or more significant effects of
the project, but the project proponent declines to adopt the mitigation measures or
alternatives; or
d. Mitigation measures or alternatives that are considerably different from those
analyzed in the previous MND would substantially reduce one or more significant
effects on the environment, but the project proponent declines to adopt the
mitigation measures or alternatives.
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Figure 1. Downtown Core and Downtown Planning Area
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Preparation of an Addendum to an MND is appropriate when none of the conditions specified in
Section 15162 (above) are present and some minor technical changes to the previously adopted
MND are necessary (see discussion below).
PROJECT REVISIONS
The MND analyzed revisions to the Zoning Regulations that included changing the City’s bedroom
density approach and establishing a minimum density unit count in multi-unit zones. Studio and
one-bedroom dwelling units less than 600 square feet in size (in all zones except AG, C/OS, and
R-1), were assigned a density unit value of 0.50 (i.e., if a parcel has a maximum density allowance
of 4, up to 8 units less than 600 square feet in size could be built).
The City now proposes to revise the density unit value of dwellings less than 600 square feet in
size in the Downtown Core from 0.50 density units to 0.00 density units to facilitate the
implementation of LUCE Policy 4.28, which calls for variable density and efficiency units1 in the
downtown.
The City uses floor-area-ratio (FAR) to regulate the intensity of uses through a combination of
height and lot coverage standards. The existing maximum FAR in the C-D zone is 3.0 for
structures up to 50 feet tall, 3.75 for structures over 50 feet tall, and 4.0 for structures over 50 feet
tall that either include a transfer of development credits for open space or historic preservation.
The existing maximum FAR in the C-R zone is 3.0. The existing height limit in the C-D zone is 50
feet, or up to 75 feet with approval of a use permit from the Planning Commission contingent upon
performance standards described in Section 17.32.030 of the Zoning Regulations. The maximum
allowed lot coverage in the C-D zone is 100 percent. The existing height limit in the C-R zone is
45 feet.
The proposed revision would alter the traditional allocation of residential capacity in the Downtown
Core away from density units per acre and only rely on the FAR allowances of individual parcels
as the threshold for the maximum number of units less than 600 square feet (limited to a studio
or one-bedroom configuration). Standard density limitations would apply for all units larger than
600 square feet. By relying on the FAR rather than density units per acre, a parcel could have
greater flexibility in the number of qualifying units within the footprint of the structure. Residential
uses on the ground floor would still be prohibited in the C-D zone due to the existing flood zone
restrictions. The proposed revisions would not alter FAR, height, or lot coverage standards.
Based on the City’s Housing Element Development Capacity Calculation (Appendix E), and
assuming an average 50% floor-area-ratio (FAR) dedicated toward residential uses, the maximum
additional buildout capacity of the Downtown Core would be approximately 1,000 units, which
would likely be single or double occupancy units. However, the draft ordinance proposes to limit
the program to 500 units.
1 Efficiency units are defined by Health and Safety Code Section 17958.1 and are units that are a minimum of 150
square feet in size that may also have partial kitchen and bathroom facilities.
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MINOR TECHNICAL CHANGES TO THE MND
Aesthetics. The MND determined potential impacts resulting from the implementation of the
Zoning Regulations Update may include: blockage of views by construction equipment and
staging areas; disruption of views by temporary signage; exposure of slopes and removal of
vegetation; structural development within identified scenic areas; and view blockages by new
structures, signs, and parking areas. The proposed density revisions would not alter the height,
FAR, lot coverage, or design guideline standards and would not result in new development where
such development is currently prohibited. No new or more significant aesthetic impacts beyond
what was identified in the MND would occur and no new mitigation measures are required.
Agriculture. The MND determined that buildout of the City pursuant to the Zoning Regulations
Update would facilitate the development and redevelopment of residential uses in areas of the
city near agricultural areas. The proposed density revisions would apply only to the Downtown
Core and would not apply to land designated for agriculture or to land that is near agriculture
areas. No new or more significant agriculture impacts beyond what was identified in the MND
would occur and no new mitigation measures are required.
Air Quality. The MND citing the 2014 LUCE FEIR identified inconsistencies with the assumptions
used in the San Luis Obispo Air Pollution Control District’s (SLOAPCD’s) Climate Action Plan
(CAP). This change was determined to be significant and unavoidable and a statement of
overriding considerations was adopted by the City Council. The MND did not identify any new or
more significant CAP consistency impacts beyond what was identified in the 2014 LUCE FEIR
and no mitigation measures were required. The proposed density revisions would exceed the
population growth projections of the SLOAPCD CAP as the density is higher than what was
accounted for. However, this impact was considered in the MND and the proposed density
revisions would not substantially increase this projection (500 new units). No new or more
significant SLOAPCD CAP consistency impacts would occur beyond what was identified in the
MND, and no new mitigation measures are required.
The MND determined that future development projects proposed under the Zoning Regulations
Update would require construction activity resulting in the generation of criteria air pollutants and
ozone precursor emissions. The MND cited the 2014 LUCE FEIR which determined that
adherence to relevant policies and implementation of SLOAPCD‐recommended project‐specific
mitigation measures would reduce potential impacts associated with future development under
the proposed Zoning Regulations Update to a less‐than‐significant level. The MND did not
identify any new or more significant construction-related air pollutant emissions impacts beyond
what was identified in the 2014 LUCE FEIR and no mitigation measures were required. The
proposed density revisions would not increase the total potential development of a parcel, which
would still be governed by FAR, height, and lot coverage standards. No new or more significant
construction-related air quality impacts would occur beyond what was identified in the MND, and
no new mitigation measures are required.
The MND determined that future development projects proposed under the Zoning Regulations
Update would involve the operation of development projects that would generate long-term
emissions of criteria pollutants and ozone precursors. However, the MND also noted that
consistent with the LUCE, the Zoning Regulations Update may result in beneficial environmental
impacts on air quality by developing incentives in the Downtown area to reduce the use of cars,
including provisions that would allow for corner stores in residential areas, further allowing upper-
story residential uses in commercial areas, providing for an enhanced pedestrian experience in
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the Downtown, providing additional dwelling units within medium to high residentially-zoned
areas, maintaining rural character and protecting natural resource areas, incorporating further
sustainability standards into land use regulations, and adjusting parking requirement to achieve
multi-modal objectives identified in the General Plan. The MND did not identify any new or more
significant construction-related air pollutant emissions impacts beyond what was identified in the
2014 LUCE FEIR and no mitigation measures were required. The proposed density revisions
would implement an incentive to reduce the use of cars by providing additional residential uses in
the Downtown Core, in proximity to shopping, dining, transportation, and recreation, which may
result in a beneficial environmental impact to air quality. No new or more significant operational
air quality impacts beyond what was identified in the MND would occur and no new mitigation
measures are required.
The MND determined that the Zoning Regulations Update would not result in the exposure of
sensitive receptors to substantial sources of local carbon monoxide concentrations, toxic air
contaminants, or odors, based on the 2014 LUCE FEIR, because the Zoning Regulations Update
would occur in areas of the City that were assessed in the 2014 LUCE FEIR. The proposed
density revisions would not result in the placement of new sensitive receptors closer to existing
sources of air pollution in comparison to existing conditions. No new or more significant impacts
beyond what was identified in the MND would occur and no new mitigation measures are required.
Biological Resources. The MND determined that future development pursuant to the Zoning
Regulations Update would be required to comply with local, state, and federal laws and policies,
and all applicable permitting requirements of the regulatory and oversight agencies intended to
address potential impacts to special‐status wildlife species. The MND determined that
implementation of local policies, as well as compliance with state and federal laws and policies
and the requirements of regulatory and oversight agencies as appropriate, and reliance on
establishment of project‐specific mitigation measures where appropriate would reduce potential
impacts to a less than significant level.
The proposed density revisions would apply to the Downtown Core, which is a largely built-up
area with little remaining native habitat. San Luis Obispo Creek flows in a man-made channel and
through a concrete tunnel beneath downtown San Luis Obispo emerging near Mission San Luis
Obispo de Tolosa. Future development resulting from the proposed revisions would be subject to
creek setback requirements and performance standards identified in the Zoning Regulations.
Additionally, Conservation and Open Space Element (COSE) Policy 7.3 requires that projects
within or adjacent to known occurrences of Natural Communities of Special Concern, or in areas
that have potential to contain one or more of these habitats, to have a site-specific biology report
prepared and undergo individual project environmental review to determine the location, extent,
and proposed impact to those habitats. No new impacts to biological resources beyond what was
identified in the MND would occur and no new mitigation measures are required.
Cultural Resources. The MND, citing the 2014 LUCE FEIR, determined that development
facilitated under the LUCE and Zoning Regulations Update could have an adverse impact on
historical structures by damaging or destroying historical buildings or structures, diminishing the
integrity of the context and setting of individual properties, or diminishing the integrity of the
historical district. The loss of historic buildings or new developments within the existing historic
districts that could impact historical resources was considered potentially significant. However,
the policies and programs identified in the LUCE and COSE, the City’s Historic Preservation
Ordinance, Historic Preservation Program Guidelines, Historic Context Statement, the City‐
designated Cultural Heritage Committee (CHC) policies and guidelines, and compliance with
CEQA would directly address this impact. The MND did not identify any new or more significant
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impacts on historical resources beyond what was analyzed in the 2014 LUCE FEIR. The proposed
density revisions would not make any changes to the LUCE and COSE, the City’s Historic
Preservation Ordinance, Historic Preservation Program Guidelines, Historic Context Statement,
or the City‐designated Cultural Heritage Committee (CHC) policies and guidelines and would not
allow new development in areas not contemplated by the LUCE or Zoning Regulations Update.
No new impacts to historical resources beyond what was identified in the MND would occur and
no new mitigation measures are required.
The MND determined that development facilitated under the Zoning Regulations Update would
result in impacts to archeological and paleontological resources and human remains. This impact
was determined to be less than significant with the adherence to the City’s Archaeological
Resource Preservation Program Guidelines and compliance with federal and state regulations.
The MND did not identify any new or more significant impacts on archaeological and
paleontological resources or human remains beyond what was analyzed in the 2014 LUCE FEIR.
The proposed density revisions would not make any changes to the LUCE and COSE, the City’s
Historic Preservation Ordinance, Historic Preservation Program Guidelines, Historic Context
Statement, or the City‐designated Cultural Heritage Committee (CHC) policies and guidelines
and would not allow new development in areas not contemplated by the LUCE or Zoning
Regulations Update. No new impacts to archaeological and paleontological resources or human
remains beyond what was identified in the MND would occur and no new mitigation measures are
required.
Geology and Soils. The MND, citing the 2014 LUCE FEIR, determined that compliance with the
California Building Code and the City’s General Plan would reduce geologic and seismic impacts
to less than significant. The MND did not identify any new or more significant impacts on
geological resources beyond what was analyzed in the 2014 LUCE FEIR. The proposed density
revisions would not allow new development in areas not contemplated by the LUCE or Zoning
Regulations Update. No new impacts to geological resources beyond what was identified in the
MND would occur and no new mitigation measures are required.
Greenhouse Gas Emissions. The MND determined that the Zoning Regulations Update will be
one of the principal tools for implementing the LUCE and will advance greenhouse gas
reduction goals as mandated by the State (AB32, SB375) and the City’s CAP. The Zoning
Regulations Update facilitates the development of a sustainable, multi-modal community to
reduce per capita vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions through
increased design standards, new design guidelines, and the imposition of general site
regulations. New strategies in the updated Zoning Regulations include:
As an incentive for increased height in the C-D zone and a community benefit for a PD
overlay, having a developer provide net-zero energy construction features
Reducing the allowable pervious surface coverage in front yards of R-1 zones from 50
percent to 40 percent
As an incentive for increased height in the C-D zone and a community benefit for a PD
overlay, requiring a Transportation Demand Management (TDM) program that achieves
measurable 20 percent mode shift and that is covenanted for long-term implementation
Allowing shared car services (e.g., ZipCar) spaces to be located in developments without
increased parking requirements
Parking requirements for alternative clean fuel vehicles
Requirements for showers, lockers and changing rooms for large developments
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The MND did not identify any new or more significant impacts on GHG emissions beyond what
was analyzed in the 2014 LUCE FEIR. The proposed density revisions would not allow new
development in areas not contemplated by the LUCE or Zoning Regulations Update and would
not change existing GHG policies of the City’s CAP or LUCE. No new GHG impacts beyond what
was identified in the MND would occur and no new mitigation measures are required.
Hazards and Hazardous Materials. The MND determined that allowing residential development
in areas of commercial use or previous commercial use could expose occupants or construction
workers to potentially hazardous materials including asbestos-containing materials and lead-
based paint, but that compliance with LUCE and the Climate Adaptation and Safety Element
(CASE) policies, City Demolition and Moving of Buildings Section 115 Public Safety
Requirements, and state and federal regulations would reduce impacts to less than significant.
The MND did not identify any new or more significant impacts related to hazards and hazardous
materials beyond what was analyzed in the 2014 LUCE FEIR. The proposed density revisions
would not allow new development in areas not contemplated by the LUCE or Zoning Regulations
Update and would not introduce residential uses in proximity to hazards beyond what was
contemplated in the MND. No new impacts related to hazards and hazardous materials beyond
what was identified in the MND would occur and no new mitigation measures are required.
Hydrology and Water Quality. The MND determined that potential development associated with
the Zoning Regulations Update could result in the pollution of natural watercourses and/or
underground aquifers. However, impacts were determined to be less than significant with the
mandatory compliance of General Plan policies and the City’s Stormwater Quality Ordinance. The
MND did not identify any new or more significant impacts related to hydrology and water quality
beyond what was analyzed in the 2014 LUCE FEIR. The proposed density revisions would not
allow new development in areas not contemplated by the LUCE or Zoning Regulations Update
and would not increase the total development potential of a parcel, which currently allows 100%
lot coverage. No new impacts related to pollution of natural watercourses and/or underground
aquifers beyond what was identified in the MND would occur and no new mitigation measures are
required.
The MND determined that the Zoning Regulations Update has the potential to increase the
amount of impervious surface within the City, which could result in a decrease in percolation to
the groundwater basin, the alteration of drainage patterns, and increases in the volume of surface
runoff. Adherence to the City’s General Plan and compliance with the City’s Storm Water
Management Program and Drainage Design Manual was determined to be adequate to reduce
impacts from additional impervious surfaces to less than significant. The proposed density
revisions would not allow new development in areas not contemplated by the LUCE or Zoning
Regulations Update and would not increase the total development potential of a parcel, which
currently allows 100% lot coverage. No new impacts related to additional impervious surfaces
beyond what was identified in the MND would occur and no new mitigation measures are required.
The MND determined that future development resulting from the Zoning Regulations Update
could result in new development within a 100-year floodplain and introduce structures in areas
that could impede or redirect flood flows. Adherence to the City’s Floodplain Management Zone
Regulations, the Waterway Management Program, the Drainage Design Manual, and the Stream
Management and Maintenance Program was determined to be sufficient to ensure that impacts
from flooding remain less than significant. The proposed density revisions would not allow new
development in areas not contemplated by the LUCE or Zoning Regulations Update and would
not increase the total development potential of a parcel, which currently allows 100% lot coverage.
No new impacts related to flooding beyond what was identified in the MND would occur and no
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new mitigation measures are required.
Land Use/Planning. The MND determined that the update to the Zoning Regulations would not
result in the division of the community. The proposed density revisions would not allow new
development in areas not contemplated by the LUCE or Zoning Regulations Update and would
introduce new uses or infrastructure that could divide a community. No new impacts related to
additional impervious surfaces beyond what was identified in the MND would occur and no new
mitigation measures are required.
The MND, citing the 2014 LUCE FEIR, determined that the Zoning Regulations Update would
make the Zoning Regulations consistent with the LUCE by including standards and requirements
that: facilitate protection of the environment, including hillsides, creeks, surface and groundwater,
soils, and air quality; include development and redevelopment standards that support a well-
balanced community; and maintain and where appropriate adapt the City form to preserve open
space, create compact, mixed-use neighborhoods that locate housing, jobs, recreation, and other
daily needs in close proximity to one another, protect the quality of life in established
neighborhoods through compliance with proposed edge conditions regulations, and encouraging
multi-modal transportation. Impacts related to environmental policy consistency were determined
to be less than significant. The proposed density revisions would not allow new development in
areas not contemplated by the LUCE or Zoning Regulations Update. Future land uses that occur
pursuant to the proposed density revisions would be required to conform to all applicable
regulations and standards of the updated Zoning Regulations and the LUCE. No new impacts
related to additional environmental policy consistency beyond what was identified in the MND
would occur and no new mitigation measures are required.
Mineral Resources. The MND determined that there are no mineral resource recovery sites
within the city and that implementation of the Zoning Regulations Update would have no impact
on mineral resources. The proposed density revisions would not be located in areas of the city no
contemplated by the Zoning Regulations Update. No new impacts related to mineral resources
would occur, there would be no impact, and no new mitigation measures are required.
Noise. The MND, citing the 2014 LUCE FEIR, determined that development constructed pursuant
to the Zoning Regulations Update would result in construction activities that could generate noise
levels that exceed the standards of the City’s Noise Control Ordinance. This impact was
determined to be significant and unavoidable and a statement of overring considerations was
adopted by the City Council. The MND did not identify any new or more significant construction
noise impacts beyond what was identified in the 2014 LUCE FEIR and no mitigation measures
were required. The proposed density revisions would not allow construction in areas not
contemplated by the LUCE or Zoning Regulations Update and would not increase the construction
potential of a property which would still be governed by FAR, height, and lot coverage standards.
No new impacts related to noise beyond what was identified in the MND would occur and no new
mitigation measures are required.
The MND determined that consistent with the analysis and conclusions in the 2014 LUCE FEIR,
implementation of the Zoning Regulations Update would result in increased traffic volumes and
associated noise levels along major transportation routes. New development associated with the
Zoning Regulations Update could also result in the siting of new sensitive receptors in close
proximity to transportation noise sources such as major roadways and the railroad, with the
potential to exceed the land use compatibility and transportation noise exposure standards in the
existing Noise Element. Future development is required to comply with the City Noise Element
and Noise Control Ordinance which require site-specific mitigation for development; therefore,
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impacts were determined to be less than significant. The proposed density revisions would not
allow construction in areas not contemplated by the LUCE or Zoning Regulations Update and
would not increase the construction potential of a property which would still be governed by FAR,
height, and lot coverage standards. No new impacts related to transportation noise beyond what
was identified in the MND would occur and no new mitigation measures are required.
The MND, citing the 2014 LUCE FEIR, determined that the Zoning Regulations Update could
facilitate development that would increase stationary source noise levels exceeding the
thresholds of the City’s Noise Element and Noise Control Ordinance. Noise Element policies and
standards would require all future development to comply with the City’s adopted noise standards,
noise mitigation procedures, and sensitive land use siting policies, including site‐specific noise
studies and mitigation measures, if necessary, to ensure that the development meets noise
thresholds. Because the City’s Noise Element contains policies and programs that address and
mitigate potential site‐specific impacts for individual projects, this impact was determined to be
less than significant. The proposed density revisions would not allow construction in areas not
contemplated by the LUCE or Zoning Regulations Update, would not increase the construction
potential of a property that would still be governed by FAR, height, and lot coverage standards,
and would not alter the policies and standards governing noise. No new impacts related to
stationary source noise beyond what was identified in the MND would occur and no new mitigation
measures are required.
Population/Housing. As documented in the 2014 LUCE FEIR, as of January 2013, the City has
a population of 45,541, and is expected to have a population increase of 4,613 people by 2035.
LUCE Policy 1.11.2 Residential Growth Rate, states that the City shall manage the growth of the
city's housing supply so that it does not exceed one percent per year, on average, based on
thresholds established by Land Use Element Table 3 [One Percent City Population Growth
Projection]. Because of the annual growth rate limitation, impacts were determined to be less than
significant. The MND did not identify any new or more significant impacts on the population
beyond what was identified in the 2014 LUCE FEIR and no mitigation measures were required.
Based on the 2021 General Plan Annual Report, the City has maintained a 0.81 percent growth
rate since 2015. Housing in the Downtown Core (C-D Zone) is exempt from the City’s Residential
Growth Ordinance, so the potential increase in residential units would not be in conflict with the
General Plan. The proposed density revisions would positively impact the jobs-to-housing ratio
within the City, which is consistent with LUCE Policy 1.5 which states that the City’s housing stock
should keep pace with the growth in employment so that the jobs-housing balance would not
worsen. The proposed density revisions would not result in new or more significant impacts
beyond what was identified in the MND and no new mitigation measures are required.
The MND determined that the Zoning Regulations Update would not result in a loss of housing or
displace existing residents. Housing Element Program 3.10 states that “continue to encourage
the creation of dwellings in the Downtown Core (C-D Zone) and the Downtown Planning Area by
continuing the "no net housing loss" program, consistent with Chapter 17.86 (Downtown Housing
Conversion Regulations) of the Zoning Regulations”. The Zoning Regulations Update retained
the statement that “development projects within the Downtown Planning Area shall not result in a
net housing loss.” The MND did not identify any new or more significant impacts beyond what
was identified in the 2014 LUCE FEIR and no mitigation measures were required. The proposed
density revisions would not alter the no net loss requirements of the Zoning Regulations or
Housing Element. No new or more significant impacts beyond what was identified in the MND
would occur and no new mitigation measures are required.
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Public Services.
Fire. The MND cited the 2014 LUCE FEIR, which determined that new residential development
facilitated by the LUE would place additional service demands on the San Luis Obispo Fire
Department (SLOFD) and that the increased service demands would have the potential to result
in a significant environmental impact if new or physically altered fire service facilities would be
required to ensure that the City’s four-minute response standard was achieved. Mitigation was
identified in the 2014 LUCE FEIR that the Safety Element be updated to include policy so that
new development can only be approved when adequate fire services and facilities are available
or would be made available by the new development. The MND did not identify any new or more
significant impacts to fire services beyond what was identified in the 2014 LUCE FEIR and no
mitigation measures were required. The Safety Element was recently updated in 2023 as the
Climate Adaptation and Safety Element (CASE) which includes Policy FI-5.3 (City-Wide Fire-
Smart New Development) that ensures that adequate fire services and facilities are available for
all new developments. The proposed density revision would have the potential to increase the
residential population in the Downtown Core. However, CASE Policy FI-5.3, which replaced the
Safety Element policy referenced in the MND, would not be altered, and future development could
only be approved if adequate fire services and facilities exist. No new or more significant fire
service impacts beyond what was identified in the MND would occur and no new mitigation
measures are required.
Police. The MND cited the 2014 LUCE FEIR, which determined that new residential development
facilitated by the LUE would place additional service demands on the San Luis Obispo Police
Department (SLOPD) and that the increased service demands would have the potential to result
in a significant environmental impact if new or physically altered police service facilities would be
required to ensure that the City’s officer to population standard was achieved. However, this
impact was determined to be less than significant because new or altered police facilities to meet
the officer-to-population standard would be required to meet community design guidelines, and
its location would need to meet the response time needs of the community. The MND did not
identify any new or more significant impacts on police services beyond what was identified in the
2014 LUCE FEIR and no mitigation measures were required. The proposed density revision
would have the potential to increase the residential population in the Downtown Core. With
additional officers, there could be additional need for evidence and equipment storage, locker
space, area to park police vehicles, and support staff (and their associated space needs)
necessary to support additional officers. However, consistent with the MND, the proposed density
revisions are unlikely to result in adverse physical impacts associated with the provision of new
or altered facilities needed to maintain the existing ratio of officers to the population served
because any new or reconstructed facility would be required to meet community design
guidelines, and its location would need to meet the response time needs of the community. No
new or more significant impacts beyond what was identified in the MND would occur and no new
mitigation measures are required.
Schools. The MND determined that residential development associated with the Zoning
Regulations Update would increase the population of the City which would likely increase the
number of children attending the City’s public schools. With the payment of Government Code
Section 65970 school impact fees, impacts were determined to be less than significant. The MND
did not identify any new or more significant impacts to school facilities beyond what was identified
in the 2014 LUCE FEIR and no mitigation measures were required. The proposed density revision
would have the potential to increase the residential population in the Downtown Core, but all new
development would be required to pay any applicable school impact fees. No new or more
significant schools impacts beyond what was identified in the MND would occur and no new
mitigation measures are required.
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Parks. Citing the 2014 LUCE FEIR, upon buildout of development allowed by the LUCE and
Zoning Regulations, the City’s parkland per capita would increase from 3.32 acres per 1,000
residents to 3.44 acres per 1,000 residents with the addition of approximately 52 acres of
parkland. The MND determined that impacts to parks would be less than significant as projects
are evaluated on a case-by-case basis to determine the level of project-specific open space or
park area required. The MND did not identify any new or more significant impacts to park facilities
beyond what was identified in the 2014 LUCE FEIR and no mitigation measures were required.
The proposed density revision would have the potential to increase the residential population in
the Downtown Core by 500 units, which would require approximately 5-10 additional acres of
parkland to meet the City’s goal of 10 acres per 1,000 residents. However, consistent with the
MND, all projects implemented as a result of the proposed density revisions would be evaluated
on a case-by-case basis to determine the level of project-specific open space or park area
required. No new or more significant park impacts beyond what was identified in the MND would
occur and no new mitigation measures are required.
Recreation. The MND determined that existing General Plan policies applicable to the
development of future recreational facilities would reduce potential environmental impacts to less
than significant. Most of the future parkland to be provided in the city would be constructed as
part of the buildout of previously approved (Margarita, Orcutt, San Luis Ranch, Avila Ranch,
Froom Ranch) Specific Plans. There are several park and recreation facilities within the
Downtown Planning Area (Figure 1), including Cheng Park, Mitchell Park, Triangle Park, Mission
Plaza, Mission Plaza Extension, San Luis Creek Open Space, Jack House Gardens, Emerson
Park, and Ludwick Community Center. Planned parks in the Downtown Planning Area include
Monterey Street Plaza, Toro/Marsh Pocket Park, Courthouse Park, Higuera Street Plaza, Rosa
Butron Adobe, and Diagonal Paseo. The proposed density revisions would be required to comply
with existing General Plan policies for construction of new recreational facilities; however, due to
the built-out condition of the Downtown Core, it is unlikely that new or additional recreation
facilities would be constructed as a result of development facilitated by the proposed density
revisions. No new or more significant recreation impacts beyond what was identified in the MND
would occur and no new mitigation measures are required.
Transportation/Traffic. The MND, citing the 2014 LUCE FEIR, determined that development
facilitated by the Zoning Regulations Update would result in significant and unavoidable impacts
on congestion on the City’s roadways (level of service), specifically to the following eight roadway
segments would experience significant impacts due to increases in volumes: Broad (entire
corridor south of South Street, South – Orcutt, Orcutt – Tank Farm Road and Buckley – South
City Limit); Chorro (Foothill – Lincoln; Los Osos Valley Road (just west of the City Limits); and
Prado (US 101 – Higuera and Higuera – Broad). The MND did not identify any new or more
significant impacts to roadway congestion and no mitigation measures were required.
After the adoption of the MND, the CEQA checklist was revised to replace level of service
(congestion) with vehicle miles traveled (VMT) as the preferred metric for evaluating a project’s
transportation impacts, in compliance with SB 743. In June 2020, the City formally adopted the
transition from LOS to VMT for the purposes of CEQA evaluation and also established local VMT
thresholds of significance. While VMT was not specifically analyzed in the 2014 LUCE FEIR, its
current inclusion in the CEQA checklist does not warrant an analysis of the entire project unless
the project changes would result in new or more severe significant environmental impacts or
unless there is new information of substantial importance that was not known at the time of the
2014 LUCE FEIR.
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Addendum to IS/MND for the 2018 Zoning Regulations Update
12
The proposed density revisions are not anticipated to result in VMT impacts as the potential
dwelling units associated with the density revisions would be located downtown, in close proximity
to the City’s transit station, the train station/Amtrack, shopping, dining, recreation, and offices. Per
the City’s Transportation Impact Study Guidelines VMT Screening Map, while lacking specific
data for the Downtown Core, is adjacent to and surrounded by areas with residential VMT per
capita that is less than 85% of the regional average. Therefore, the proposed density revisions
would not create new or more significant impacts beyond what was identified in the MND and no
new mitigation measures are required.
Tribal Cultural Resources. The MND determined that development facilitated under the Zoning
Regulations Update would result in impacts to tribal cultural resources. This impact was
determined to be less than significant with the adherence to the City’s Archaeological Resource
Preservation Program Guidelines and compliance with federal and state regulations. The MND
did not identify any new or more significant impacts to tribal cultural resources beyond what was
analyzed in the 2014 LUCE FEIR. The proposed density revisions would not make any changes
to the LUCE and COSE or the Archaeological Resource Preservation Program Guidelines and
would not allow new development in areas not contemplated by the LUCE or Zoning Regulations
Update. No new impacts to tribal cultural resources beyond what was identified in the MND would
occur and no new mitigation measures are required.
Utilities/Service Systems.
Wastewater. The 2014 LUCE FEIR determined that buildout of development allowed under the
LUCE would exceed the capacity of the City’s Water Resource Recovery Facility by 0.26 million
gallons per day. However, this impact was determined to be less than significant because at the
time the City was proposing to upgrade the Water Resource Recovery Facility to increase in
average dry weather flow (ADWF) capacity to serve the buildout of the LUCE, and because
policies in the LUCE and the Water and Wastewater Element require projects to demonstrate that
adequate treatment capacity at the Water Resource Recovery Facility exists. The MND
determined that the Zoning Regulations Update would result in similar impacts as those disclosed
in the 2014 LUCE FEIR and no new or more significant impacts to wastewater were identified.
The City’s Water Resource Recovery Facility has since been completed and is operational with a
capacity of 5.2 million-gallons-per-day. The proposed density revisions would allow an additional
500 units in the Downtown Core and would generate between 45 and 105 gallons of wastewater
per day per unit, based on the City’s wastewater generation rates (0.5-1.2 acre-feet-per-year
total). The Downtown Core is not within a sewer capacity-constrained area and future
development would be required to demonstrate that adequate treatment capacity at the Water
Resource Recovery Facility exists prior to construction. No new impacts to wastewater beyond
what was identified in the MND would occur and no new mitigation measures are required.
Water. The MND, citing the 2014 LUCE FEIR, determined that buildout of development facilitated
by the Zoning Regulations Update would require a water supply of 7,815 acre-feet-per-year. The
City’s current water supply totals approximately 10,630 acre-feet-per-year, which exceeds the
demand that would be generated by the LUCE buildout/Zoning Regulations buildout. Impacts
were determined to be less than significant and no new or more significant impacts to waster were
identified. Based on the assumptions in the LUCE2, and assuming any residential units
constructed under the proposed density revisions would be single or double occupancy, the
proposed density revisions would result in approximately 127 to 254 additional acre-feet-per-year
of water demand. This would bring the LUCE projected water demand to 7,942 to 8,069 acre-
2 Assumes water reduction requirements of SBX7‐7 would reduce per capita water use to 117 gallons per day by
2020.
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Addendum to IS/MND for the 2018 Zoning Regulations Update
13
feet-per-year, which is within the City’s water supply of approximately 10,630 acre-feet-per-year.
No new impacts to water beyond what was identified in the MND would occur and no new
mitigation measures are required.
Stormwater. The MND determined that future development could cause an increase in the amount
of impervious surfaces within the City which could increase the volume of surface runoff into City
stormwater systems. Impacts were determined to be less than significant because future
development would be required to comply with Central Coast Regional Water Quality Control
Board Post Construction Requirements and the City’s Storm Water Management Program. The
MND did not identify any new or more significant impacts related to stormwater beyond what was
identified in the 2014 LUCE FEIR and no mitigation measures were required. The proposed
density revisions would not allow new development in areas not contemplated by the LUCE or
Zoning Regulations Update and would not increase the total development potential of a parcel,
which currently allows 100% lot coverage (and 100% impervious surface). No new impacts related
to stormwater beyond what was identified in the MND would occur and no new mitigation
measures are required.
Solid Waste. The MND determined that the Zoning Regulations Update would not interfere with
the City’s ability to comply with solid waste management and diversion regulations. Additionally,
LUCE Policy 1.13.10 requires the City to determine if adequate solid waste disposal capacity
exists prior to approving future development. The MND did not identify any new or more significant
impacts related to solid waste disposal beyond what was identified in the 2014 LUCE FEIR and
no mitigation measures were required. The proposed density revisions would not increase the
total development potential of a parcel and new development would only be allowed if adequate
solid waste disposal capacity exists, per LUCE policy. No new impacts related to solid waste
beyond what was identified in the MND would occur and no new mitigation measures are required.
BASIS FOR ADDENDUM
In accordance with Section 15164 of the State CEQA Guidelines, the City of San Luis Obispo has
determined that this Addendum to the adopted MND is necessary to document changes or
additions that have occurred in the project description since the MND was originally adopted. The
changes proposed are relatively minor in nature and, as documented above, would not result in
any new significant environmental effects or a substantial increase in the severity of previously
identified significant effects. Additionally, no new information of substantial importance that was
not known and could not have been known with the exercise of reasonable diligence at the time
the previous MND was adopted has been identified. The City has reviewed and considered the
information contained in this Addendum and finds that the preparation of subsequent CEQA
analysis that would require public circulation is not necessary.
This Addendum does not require circulation because it does not provide significant new
information that changes the adopted MND in a way that deprives the public of a meaningful
opportunity to comment upon a substantial adverse environmental effect of the project or a
feasible way to mitigate or avoid such an effect. The City shall consider this Addendum with the
adopted MND as part of the approval of the proposed ordinance.
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EXHIBIT B: DRAFT CITY COUNCIL ORDINANCE
O _____
ORDINANCE NO. _____ (2023 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 17 (ZONING
REGULATIONS) OF THE MUNICIPAL CODE TO INCORPORATE A
DOWNTOWN FLEXIBLE DENSITY PROGRAM FOR QUALIFYING
RESIDENTIAL PROJECTS. PROJECT IS CONSISTENT WITH THE
PREVIOUS MITIGATED NEGATIVE DECLARATION FOR THE 2018
COMPREHENSIVE ZONING REGULATIONS UPDATE (DOWNTOWN
FLEXIBLE DENSITY PROGRAM, CODE-0017-2023)
WHEREAS, on February 5, 2019, the City of San Luis Obispo adopted a
comprehensive update of the Zoning Ordinance (2018 Zoning Ordinance); and
WHEREAS, on November 17, 2020, the City Council of the City of San Luis Obispo
conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San
Luis Obispo, California on November 17, 2020, for the purpose of final adoption of the
sixth cycle update to the General Plan Housing Element that included Program 2.15 that
states, “Evaluate a flexible density pilot program and initiate an update of the Zoning
Regulations and Community Design Guidelines to incorporate flexible density
development options in Downtown Core and portions of Upper Monterey and Mid-
Higuera Special Focus Areas to support the production of 50 smaller residential units
(150 to 600 square feet) per year during the planning period”; and
WHEREAS, the 6th Cycle Housing Element includes Policy 6.6 that states,
“Consistent with the City’s goal to stimulate higher density infill where appropriate in the
Downtown, Upper Monterey, and Mid-Higuera Special Focus Areas, the City shall
consider changes to the Zoning Regulations that would allow for flexible density
standards that support the development of smaller apartments and efficiency units”; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted
a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California on February 22, 2023, for the purpose of considering the various amendments
to Title 17 (Zoning Regulations) of the Municipal Code to implement the Downtown
Flexible Density Program; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California on _____________, 2023, for the purpose of considering the various
amendments amendment to Title 17 (Zoning Regulations) of the Municipal Code to
implement the Downtown Flexible Density Program;
WHEREAS, the City Council finds that the proposed amendment is consistent
with the General Plan, Zoning Regulations, and other applicable City goals and policies
as amended; and
WHEREAS, notices of said public hearing were made at the time and in the
manner required by law.
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Ordinance No. _____ (2023 Series) EXHIBIT B
O _____
WHEREAS, the City Council has duly considered all evidence, including the
testimony of the applicant, interested parties, and the evaluation and recommendations
by staff, presented at said hearing.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Incorporation of Recitals. The City Council find that the foregoing
recitals and administrative report presented with this ordinance are true and correct and
are incorporated in the ordinance by this reference and adopted as the findings of the
City Council.
SECTION 2. Findings. Based upon all the evidence, the City Council makes the
following finding:
1. The proposed amendments to Title 17 to implement the Downtown Flexible
Density Program will not cause significant health, safety, or welfare concerns since
the amendments are consistent with the General Plan and directly implement City
goals and polices.
2. The proposed amendments to Title 17 of the Municipal Code are consistent with
the 6th Cycle Housing Element Program 2.15 which states “Evaluate a flexible
density pilot program and initiate an update of the Zoning Regulations and
Community Design Guidelines to incorporate flexible density development options
in Downtown Core and portions of Upper Monterey and Mid -Higuera Special
Focus Areas to support the production of 50 smaller residential units (150 to 600
square feet) per year during the planning period .”
3. The proposed amendment to Title 17 of the Municipal Code are also consistent
with the 6th Cycle Housing Element Policy 6.6 which states “Consistent with the
City’s goal to stimulate higher density infill where appropriate in the Downtown,
Upper Monterey, and Mid-Higuera Special Focus Areas, the City shall consider
changes to the Zoning Regulations that would allow for flexible density standards
that support the development of smaller apartments and efficiency units.”
SECTION 3. Environmental Determination. Pursuant to CEQA Guideline 15164,
an addendum to the Initial Study / Negative Declaration for the Zoning Regulations
Update (GENP-0327-2017) was prepared for the proposed Downtown Flexible Density
Program. The addendum concluded the following:
i. Pursuant to Section 15162 of the State CEQA Guidelines , a subsequent
environmental impact report is not required because:
a) The project changes do not result in new or more severe environmental
impacts.
b) The circumstances under which the project is undertaken will not require
major changes to the adopted Negative Declaration , and
c) The modified project does not require any new mitigation measures.
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Ordinance No. _____ (2023 Series) EXHIBIT B
O _____
ii. The proposed Downtown Flexible Density Program, including proposed
amendments identified in this Addendum, would make revisions, additions,
corrections and clarifications to various sections of the Zoning Regulations to
ensure consistency and successful implementation of the Housing Element.
The proposed Downtown Flexible Density Program and associated
amendments to Municipal Code Title 17 are consistent with the scope of the
previously-approved Comprehensive Zoning Regulations Update.
iii. The changes are consistent with State Law, the City of San Luis Obispo
Climate Action Plan, and the City of San Luis Obispo General Plan.
Based on the foregoing, the City Council does hereby adopt the Addendum to the Initial
Study Negative Declaration that was prepared for the Comprehensive Zoning Regulations
Update for the Downtown Flexible Density Program, as provided in Exhibit A.
SECTION 4. Section 17.70.040.A.3, entitled “Maximum Residential Development
Potential” is hereby amended to add a new subsection “a” entitled “Downtown Flexible
Density Program”, and reads as follows:
3. Maximum Residential Development Potential. Maximum residential
development potential shall be the net lot area (in whole and fractional acres),
multiplied by the maximum density allowed (in density units per acre) according to
Subsections A.1 through A.2, above. The resulting number (in density units,
carried out to the nearest one hundredth unit) will be the maximum residential
development potential. Any combination of dwelling types and numbers may be
developed, so long as their combined density unit values do not exceed the
maximum potential.
a. Downtown Flexible Density Program. Properties zoned C-D or C-R within
the Downtown Core may be developed at a residential density that is greater
than the base density for the zone in which the lot is located, subject to the
provisions outlined in Chapter 17.141 (Downtown Flexible Density Program).
SECTION 5. Section 17.70.130.D.1.a, entitled “Ground Floor Limitations” is
hereby amended to read as follows:
a. Ground Floor Limitations. In the Downtown Core (as shown in Section
17.141.020, Figure 8-1) and the C-D zone, residential units shall not occupy any
ground floor space. In all other zones, residential units shall not occupy more than
50 percent of the ground floor space within the first 50 feet of floor area measured
from each building face adjacent to a street toward the rear of the building, with no
more than 30 percent of the building frontage to be occupied by residential uses.
SECTION 6. Section 17.138.020.A, is hereby amended to add a new subsection
“8”, and reads as follows:
A. This Chapter shall apply to all residential development projects, except the
following types of residential development projects are exempt:
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Ordinance No. _____ (2023 Series) EXHIBIT B
O _____
1. Residential additions, repairs, or remodels, provided that such work does not
increase the number of existing dwellings;
2. The addition or inclusion of Accessory Dwelling Units (ADUs) or Junior
Accessory Dwelling Units (JADUs) associated with an existing or proposed
residential or mixed-use development;
3. Affordable housing projects in which 100 percent of the dwellings to be built will
be sold or rented in conformance with the City’s Affordable Housing Standards
(excluding any on-site manager unit);
4. Housing projects that include a density bonus.
5. Emergency projects or projects which the Council determines are necessary to
protect public health and safety;
6. Development projects which the Director determines are essentially
noncommercial or nonresidential in nature, which provide educational, social,
or related services to the community and which are proposed by public
agencies, nonprofit agencies, foundations, and other similar organizations;
7. Projects which replace or restore a structure damaged or destroyed by fire,
flood, earthquake, or other disaster within three years prior to the application
for the new structure(s) (see Chapter 17.92 Nonconforming Structure);
8. Residential units that qualify under the Downtown Flexible Density Program
(see Chapter 17.141).
SECTION 7. Chapter 17.141, entitled “Downtown Flexible Density Program” is
hereby added to Municipal Code Title 17 Article 8, to read as follows:
Chapter 17.141 – Downtown Flexible Density Program
17.141.010 – Purpose and Intent
The provisions in this Chapter are intended to carry out a key program directed by the
2014 General Plan Land Use Element, and the 2020 Housing Element to implement
the Downtown Flexible Density Program. The Program is intended to facilitate the
construction of smaller housing units within the City’s Downtown Core by relaxing
density limitations for qualifying units and providing development standard incentives.
The Program will be in effect until January 1, 2029, or until 500 residential units have
been entitled or permitted, whichever occurs first.
17.141.020 - Applicability
The Downtown Flexible Density Program eliminates residential density requirements
for units less than 600 square feet in size. Projects that qualify under this Chapter
may be developed at a residential density that is greater than the base density for the
zone in which the lot is located.
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Ordinance No. _____ (2023 Series) EXHIBIT B
O _____
A. Location. The Downtown Flexible Density Program shall only be available to
properties zoned C-D or C-R within the Downtown Core as shown in the Figure 8-
1 (Downtown Core).
B. Residential Units. The Downtown Flexible Density Program is limited to studio or
one-bedroom units that are less than 600 square feet, all other residential units
600 square feet or larger shall conform to the standard density limitations of the
underlying zone.
1. The provisions of this Chapter shall not apply to projects that include a request
for a density bonus in accordance with Section 17.140.040 (Standard
Incentives for Housing Projects). Standard density limitations shall apply to any
project that includes a request for a density bonus, in accordance with Section
17.70.040.A.1 (Density Calculation – General).
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Ordinance No. _____ (2023 Series) EXHIBIT B
O _____
Figure 8-1: Downtown Core
Page 45 of 54
Ordinance No. _____ (2023 Series) EXHIBIT B
O _____
17.141.030 - Development Standards Incentives
Applications submitted for review in accordance with this Chapter shall conform to all
applicable development standards of the underlying zone, including but not limited to
height, setbacks, floor area ratios, and building lot coverage, unless otherwise stated
in this Chapter or prohibited by state law.
A. Residential Density. Residential units that are less than 600 square feet in size
and limited to a studio or one-bedroom configuration may exceed the base density
for the zone in which the lot is located, in accordance with all provisions of this
Chapter. For the purposes of this Program, qualifying units shall have a density
unit value of 0.0, rather than the standard 0.5 density unit.
1. Standard density limitations shall apply to all residential units that are larger
than 600 square feet or include two or more bedrooms, in acc ordance with
Section 17.70.040.A.1 (Density Calculation – General).
B. Inclusionary Housing Exemption. Residential units less than 600 square feet
that are of a studio or one-bedroom configuration shall be exempt from inclusionary
housing requirements, as described in Section 17.138.040 (Inclusionary Housing
Requirements), subject to the following:
1. Commercial Linkage fees shall apply (Municipal Code Chapter 4.60).
2. Residential units 600 square feet or larger shall be subject to the standard
Inclusionary Housing Requirements (Chapter 17.138: Inclusionary Housing
Requirements).
C. Parking Requirements. Vehicle parking requirements shall be required in
accordance with Chapter 17.72 (Parking and Loading), except as otherwise
provided below;
1. Minimum Parking Requirements. Qualifying units under the Downtown
Flexible Density Program shall require minimum parking rate of one-half that
required in Table 3-4: Parking Requirements by Use.
17.141.040 - Review Procedures
All new construction projects including additions or alterations to existing buildings that
include new units that qualify under this Chapter shall be subject to the City’s
discretionary development review process, unless otherwise exempt, as outlined in
Chapter 17.106 (Development Review).
17.141.050 - Program Duration
The Flexible Density Program shall have an initial duration consistent with the current
Housing Element Cycle and expire on January 1, 2029, or until 500 new residential
units are entitled or permitted under this program, whichever occurs first.
A. Exclusion of Affordable Housing Units. Housing units that are deed restricted
as affordable to moderate-income or below households, as defined in the City’s
Below Market Rate Housing Standards, will not count towards the 500 -unit
Program limit.
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Ordinance No. _____ (2023 Series) EXHIBIT B
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B. Pending Applications. Any application for new development that is deemed
complete prior to the expiration of the Program term as established in this Section,
may continue to be processed in accordance with this Chapter.
SECTION 8. Chapter 17.142, entitled “Downtown Housing Conversion
Regulations” Figure 8-1 (Downtown Planning Area and Downtown Core) is hereby
relabeled as 8-2, respectfully, including all text references throughout Title 17.
SECTION 9. Section 17.144.020, entitled “Standard Incentives for Housing
Projects” subsection “D” is hereby amended to read as follows:
D. Dwellings affordable and enforceably restricted to residents with extremely low,
very low, low, or moderate incomes, as defined in the City’s General Plan Housing
Element, new dwellings in the Ddowntown Ccore (C-D zone as shown on the
official zoning map), and legally established accessory dwelling units shall be
exempt from these regulations. Enforceably restricted shall mean dwellings that
are subject to deed restrictions, development agreements, or other legal
mechanisms acceptable to the City to ensure long-term affordability, consistent
with City affordable housing standards. In expansion areas, the overall number of
units built must conform to the City approved phasing plan.
SECTION 10. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforcement of the remaining portions of this Ordinance, or any other provisions of the
city's rules and regulations. It is the city's express intent that each remaining portion would
have been adopted irrespective of the fact that any one or more subdivisions, paragraphs,
sentences, clauses, or phrases be declared invalid or unenforceable .
Page 47 of 54
Ordinance No. _____ (2023 Series) EXHIBIT B
O _____
SECTION 11. Implementation. A summary of this ordinance, together with the
names of Council members voting for and against, shall be published at least five (5) days
prior to its final passage in The New Times, a newspaper published and circulated in this
City. This ordinance shall go into effect at the expiration of thirty (30) days after its final
passage.
INTRODUCED on the ___ day of ___, 202 3, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ___ day of ___, 202 3, on the following vote:
AYES:
NOES:
ABSENT:
__________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 48 of 54
Memorandum
DATE: February 15, 2023
TO: Planning Commission
FROM: Tyler Corey, Deputy Director Community Development
VIA: Kyle Bell, Housing Coordinator
SUBJECT: Downtown Flexible Density Program – Public Engagement Summary
SUMMARY
According to the Public Engagement and Noticing (PEN) manual, the process for the
ordinance adoption would typically fall under inform/consult because the program is
specifically identified in the Housing Element as a Policy, and the Council’s Major City
Goal was to bring the program to review within this fiscal plan. However, the public
engagement approach for this program followed the consult/collaborate approach due to
the sensitivity of downtown and interest in housing needs for the community.
The Public Engagement effort consisted of several stakeholder interviews and
presentations, as well as an Open City Hall Public Forum, as discussed in more detail
below.
Stakeholder Interviews
On Friday, January 20, 2023, Staff contacted 15 interest groups from various
organizations around the city to attend a roundtable discussion. The roundtable
discussions were provided to facilitate a conversation around the key features of the
Downtown Flexible Density Program and included a presentation on the background of
the origins of the Program. Each group assigned a representative to attend one of the
scheduled Roundtable Discussions (except for Cuesta). The meetings were not assigned,
and the attendance of each meeting was based on the organization’s availability.
Chamber of Commerce
Downtown Association
Homebuilder’s Association
YIMBY
GALA Pride and Diversity Center
Diversity Coalition SLO County
Race Matters SLO
Transitions Mental Health Association
HASLO
People’s Self-Help Housing
Save our Downtown
Building a Better SLO
Healthy Communities Working Group
Cal Poly
Cuesta
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Memo: Public Engagement Summary Memo
Page 2
Roundtable 1 – January 26, 2023
Attendees: YIMBY and Downtown Association
General Consensus: Attendees conveyed support of program, based on goals of
providing a more diverse, welcoming, cultural, and inclusive downtown community.
Recommendations:
Add additional parking districts, increase parking permit costs, and expand the
DROP Program to mitigate parking issues.
Calculate the average capacity of parking structures and overnight parking.
Amend ordinance to 1 parking space for every 3 housing units.
Expand the boundary of the program beyond the Downtown Core to include
properties further down Monterey Street.
Amend ordinance to allow developments to qualify through average unit size.
Place a limit on the amount a developer can charge for parking.
Roundtable 2 – January 30, 2023
Attendees: Transitions Mental Health, HASLO, People’s Self -Help Housing, Cal Poly
General Consensus: Attendees conveyed support of program, based on the appeal
to current demographics of the community, and opportunity to convert unused office
space to housing. However, the group took exception to the exemption of the
Inclusionary Housing Requirement.
Recommendations:
Expand the DROP Program and provide discounts for low-income residents.
Reduce impact fees for projects that include affordable housing.
Provide priority to downtown employees that do not own a car.
Provide bike share program.
Monitor pricing of units to verify level of affordability.
Include requirements to comply with Inclusionary Housing Requirements
Gather information from major city employers to verify whether this housing
typology is in demand for the City’s workforce.
Roundtable 3 – January 31, 2023
Attendees: GALA Pride and Diversity Center, Save our Downtown, Building a Better
SLO, and Healthy Communities Working Group.
General Consensus: Majority of attendees conveyed support of program, with one
group expressing opposition. Attendees who expressed support of the program noted
benefits related to active transportation, commute reductions, and increased
economic vitality of the downtown. Attendees who express opposition of the program
noted concerns towards the small size of the units as unfit for families, and pandemic
concerns for over-crowding. All attendees expressed support of incentivizes housing
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Memo: Public Engagement Summary Memo
Page 3
supportive infrastructure such as grocery stores.
Recommendations:
Remove the sunset clause or allow for more than 500 units before the
deadline.
Require open air stairs, positive air pressure systems, and freight elevators to
plan for higher density living during future pandemics.
Require communal/rooftop green space.
Roundtable 4 – February 7, 2023
Attendees: Home Builders Association
General Consensus: Attendees conveyed support of program, as a positive method
to increase housing production in the community.
Recommendations:
Expand the boundary of the program beyond the Downtown Core to include
the entire Downtown Planning Area.
Roundtable 5 – February 17, 2023
Attendees: Race Matter’s SLO and Diversity Coalition of SLO County
[This meeting had been rescheduled to facilitate representatives from these
organizations who were unable to attend the previous roundtable discussions due to
scheduling conflicts.]
Staff Presentations
Downtown Association - Board of Directors – February 14, 2023
Comments: Attendees asked for clarification on how many residential units exist
downtown (214) and how many more units are planned in the pipeline (~300
residential units). The group expressed support for incentivizing relevant
infrastructure such as grocery stores.
Recommendations:
Provide information on where the existing residents within downtown currently
park their vehicles
Chamber of Commerce – February 16, 2023 [The Chamber of Commerce was invited to
attend the roundtable discussions but opted to have staff provide a presentation to their
members to inform them of the program]
Regional Housing Team – February 16, 2023 [Staff will provide a presentation on the
key features of the Program at the next regularly scheduled meeting ]
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Memo: Public Engagement Summary Memo
Page 4
Developer’s Roundtable – March 1, 2023 [The Developer’s Roundtable was invited to
participate in the Open City Hall Community Forum, staff has scheduled a presentation
on the key features of the program at the next regularly scheduled meeting ]
Open City Hall Public Survey
A Community Forum was provided through Open City Hall for members of the public to
provide input on the various components of the draft Program. The forum was designed
to facilitate an open discussion regarding the needs of housing within the Downtown area.
Participates were asked to provide their feedback on the key components of the program
to meet the needs of the community.
Open City Hall Community Forum:
https://www.opentownhall.com/portals/189/Issue_12545
General Response
58% in favor of the program, 42% opposed to the program.
Reasons for Support
Participants of the Survey identified various reasons for support of the program, the top
five reasons include;
Increasing the supply of housing within downtown.
Promotes community goals for economic vitality for downtown businesses
Provides more options for single household living within downtown
Promotes community goals for active transportation such as bicycle and transit
infrastructure and reduces vehicle dependency.
Prevents urban sprawl and preserves the city’s green belt by focusing
development within the urban core rather than expanding out.
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Reasons to Support
Increases Housing Supply
Support Economic Vitality
Smaller Unit Living
Support Alternative
Transportation
Prevents Sprawl
Support Climate Action
Page 52 of 54
Memo: Public Engagement Summary Memo
Page 5
Reasons for Opposition
Participates of the Survey identified various reasons in opposition of implementing the
Program as presented, the top five reasons conveyed in opposition include;
Not enough parking downtown.
The units will not be affordable to those who need it.
Adding more housing downtown will create over -crowding which will increase
crime and noise in the community.
Adding more housing will increase traffic throughout the community.
The size of the units within the Program are too small.
Public Recommendations
A list of public recommendations has been provided below for consideration by the
Planning Commission.
1. The Program should require compliance with Inclusionary Housing Requirements
or increase affordable housing requirements – design for existing
residents/workforce.
2. Preserve the “small town” feel – limit the Program to 3-stories in height and require
design review.
3. Incentivize support for housing amenities such as grocery stores, laundry, and
provide open space requirements for residents.
4. Prioritize addressing homelessness and improving existing infrastructure before
adding more housing.
5. Enhance existing bicycle and transit infrastructure, ensure readily available bicycle
parking is provided for residents
6. Increase the size of the units within the Program and allow for more unit type
configurations such as two-bedroom units.
7. Do not provide for any parking reductions associated with the program.
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Reasons to Not Support
Insufficient Parking
Unaffordable
Overcrowding
Increases Traffic
Too Small of Units
Water Infrastructure
Impacts Viewshed
Page 53 of 54
Memo: Public Engagement Summary Memo
Page 6
8. Reduce parking requirements further or eliminate minimum parking requirements
altogether.
9. Remove the 500-unit limit within the program and consider expanding the program
boundaries beyond the Downtown Core.
10. Reduce fees associated with development of housing projects, provide
opportunities for permit streamlining.
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Public Recommendations
More Affordable Housing
"Small Town Feel"
Incentivize Amenities
Prioritize Homelessness and
Other Infrastructure
Enhanced Bicycle and Transit
Infrastructure
Increase Size of Units
No Parking Reduction
Reduce Parking
Expand the Program
Remove Cost Barriers
Page 54 of 54
Downtown Flexible Density Program
Title 17 Amendments
February 22, 2023
Review of a draft Ordinance amending Title 17 (Zoning
Regulations) of the Municipal Code to implement Housing Element
Program 2.15 and Policy 6.6 to provide a Downtown Flexible
Density Program.
Recommendation
2
Adopt a draft Resolution to:
Recommendthe City Council introduce and adopt an
Ordinance amending Title 17 (Zoning Regulations)of the
Municipal Code to incorporate the Downtown Flexible
Density Program for qualifying residential projects.
Downtown Flexible Density Program Background 3
2014 Land Use Element directed the City to consider
alternatives to standard density thresholds in
Downtown.
Discussed in the 2017 Downtown Concept Plan.
Identified in the 2018 Comprehensive Zoning
Regulations Update:Flexible Density White Paper.
Identified in the 2020 Climate Action Plan as a program
initiative (Connected 5.1).
Memorialized in the 2020 Housing Element Update:
Program 2.15 and Policy 6.6.
Identified as one of SLO’s Major City Goals for 2021-
2023:Housing and Homelessness.
Housing Program Initiatives
4
▪The Flexible Density Program is only one tool to achieve housing
objectives.
▪Additional tools the City utilizes are:
▪Fractional density units -Production
▪Minimum density allowances –Production
▪Tiered impact fee structure that incentivizes smaller units –Production
▪Ministerial review of ADUs and JADUs –Streamlining/Production
▪SB 9 –H.O.M.E.Act –Streamlining/Production
▪Streamlined Development Review process –Streamlining
▪Objective Design Standards –Streamlining
▪Density Bonus Regulations –Affordable Housing
▪Inclusionary Housing Requirements –Affordable Housing
Housing Element
5
Program 2.15: Evaluate a flexible density pilot program
and initiate an update of the Zoning Regulations and
Community Design Guidelines to incorporate flexible
density development options in Downtown Core and
portions of Upper Monterey and Mid-Higuera Special
Focus Areas to support the production of 50 smaller
residential units (150 to 600 square feet) per year
during the planning period.
Key Program Features
6
1.Reduces density thresholds for qualifying units: limited to less
than 600 sf in size (studio or one-bedroom configuration).
2.Prohibited on the ground floor.
3.Limited to the C-D or C-R zone within Downtown Core.
4.Reduced minimum parking requirements for qualifying units in
the C-R zone (no changes in the C-D zone). DROP Program
available.
5.Qualifying units exempt from Inclusionary Housing Requirements
as an incentive.
6.Program is not available in conjunction with Density Bonus
projects.
7.Expires on January 1, 2029, or until 500 new residential units
are entitled or permitted, whichever occurs first.
8.No changes to the Development Review process.
9.No changes to development standards such as Building Height,
Floor Area Ratio, Setbacks, lot coverage, etc.
Flexible Density Program –Residential Capacity
7
Existing Fractional Density Thresholds;
Studio/1-bed units (<600 sf) = 0.5 Density Units
1-bed units (<1,000 sf) = 0.66
2-bed units = 1.0
3-bed units = 1.5
4-bed+ units = 2.0
Flexible Density Program Threshold Changes;
Studio/1-bed units (<600 sf) = 0.0 Density Units
Ex. Existing Density Standards –Fractional Density
C-D or C-
R zone
Lot Area
(sf*)Acres Density
Allowance
Available
Density
Maximum # of
Units < 600 sf
Example
Property 10,000 0.23 36 Density
Units/ Acre 8.26 16 units
Ex. Downtown Flexible Density Program
C-D or C-
R zone
Lot Area
(sf*)
3.0
FAR
(sf)
Ground
Floor
Retail (sf)
Remaining
Building
Area (sf)
Maximum #
of Units w/
Average size
of 550 sf
Example
Property 10,000 30,000 10,000 20,000 36 units
Flexible Density Program –Parking
8
In 1981, parking requirements were reduced in the
C-D zone to ½ that required elsewhere in the City.
The parking in-lieu fee district was established in
1987.
No changes are proposed to parking
requirements in the C-D zone or to the parking
in-lieu fee district.
The parking incentive under the program is limited
to qualifying units in the C-R zone.
There are over 2,600 public parking spaces in
Downtown.
Downtown residents are eligible to participate in
the Downtown Residential Overnight Parking
(DROP) Program.
Public Engagement –PEN Manual
9
Public engagement followed the
consult/collaborate approach due to the
sensitivity of downtown and interest in housing
needs for the community.
Public Engagement consisted of;
▪Consultations with various City Departments and Divisions.
▪Open City Hall Community Forum.
▪City News Release.
▪Stakeholder group interviews.
▪Presentations were provided to the Downtown Association
Board of Directors, Chamber of Commerce, and the Regional
Housing Action Team.
Environmental Review
10
Pursuant to CEQA Guideline 15164,an addendum to the Initial Study /Negative Declaration for the
Zoning Regulations Update (GENP-0327-2017)was prepared for the proposed Downtown Flexible
Density Program.
A subsequent environmental impact report is not required because:
a)The project changes do not result in new or more severe environmental impacts.
b)The circumstances under which the project is undertaken will not require major changes to the adopted
Negative Declaration,and
c)The modified project does not require any new mitigation measures.
The proposed Downtown Flexible Density Program and associated amendments to Municipal Code Title
17 are consistent with the scope of the previously approved Comprehensive Zoning Regulations
Update.
The changes are consistent with State Law,the City of San Luis Obispo Climate Action Plan,and the
City of San Luis Obispo General Plan.
Recommendation
11
Adopt a draft Resolution to:
Recommendthe City Council introduce and adopt an
Ordinance amending Title 17 (Zoning Regulations)of the
Municipal Code to incorporate the Downtown Flexible
Density Program for qualifying residential projects.
Examples of units that are less than 600 sf.
12
451 square feet.
600 square feet.
288 square feet
Housing Element
13
Policy 6.6: Consistent with the City’s goal to stimulate
higher density infill where appropriate in the Downtown,
Upper Monterey, and Mid-Higuera Special Focus Areas,,
the City shall consider changes to the Zoning
Regulations that would allow for flexible density
standards that support the development of smaller
apartments and efficiency units.
Downtown Core and Planning Area
14
Overview of Development Review Process
15
▪Exempt projects –Ministerial,no public review process
▪Qualifying projects under Objective Standards (Chapter 17.69)
▪Less than 5 dwellings with average size less than 1,200 square feet.
▪Minor Development Review –No hearing,final action by CDD Director
▪10 units or less.
▪Moderate Development Review –ARC or CHC hearing,final action by CDD Director
▪Between 11 and 49 units.
▪Major Development Review –ARC/CHC hearing,final action by Planning Commission
▪50 units or more.
▪All significant additions,and new construction in the C-D zone.
Overview of Existing Development Standards
16
Existing Development Standards for the Downtown Core
Development Standards C-D
Downtown Commercial
C-R
Retail Commercial
Maximum Density 36 units/acre
Minimum Street Yard No street setback
Minimum Other Yard As provided in zone of adjacent lot, or Edge Conditions
Maximum Building Height 50-75 feet 45 feet
Maximum Floor Area Ratio 3.0 –4.0 FAR; varies with
building height 3.0 FAR
Maximum Lot Coverage 100%
Minimum Lot Area (sf*)3,000 9,000
Minimum Required Parking Half the requirement of
Table 3-4
Table 3-4: Parking Requirements
by Use
Overview of Existing C-D Standards
17
▪Limitation on New Driveways
▪Residential Required
▪No Net Housing Loss
▪Minimum Height of 2-stories
▪Maximum Building Height above 50
feet
▪Subject to Community Benefits (affordable
housing required)
▪Visual Study required for buildings
taller than 30 feet.
▪Upper story step-back requirements
Public Engagement –Stakeholder Comments
18
Parking
▪Add additional parking districts around downtown to
prevent spillover into neighborhoods.
▪Reduce parking requirements further or eliminate
requirement for qualifying units.
▪Provide bike share program.
Program Boundary and Duration
▪Expand the boundary of the Program beyond the
Downtown Core.
▪Remove the sunset clause or allow for more than 500
units before the deadline,or change program based on
occupancy rather than entitlement.
Unit Size
▪Amend program to allow developments to qualify through
average unit size.
Affordable Housing
▪Require Inclusionary Housing Requirements.
▪Reduce impact fees for projects that include affordable
housing.
Design Features
▪Require open air stairs,positive air pressure systems,
communal/rooftop green space,and freight elevators to
plan for higher density living during future pandemics.
Review Process
▪Streamline review process for modifications to existing
entitled projects.
Public Engagement –Comments
19
1)Require affordable housing.
2)Preserve “small town feel”limit to 3-stories in height.
3)Incentivize grocery stores,and other residential
amenities.
4)Prioritize addressing homelessness and improving
existing infrastructure.
5)Enhance bicycle and transit programs.
6)Increase the size of the units,allow two-bedrooms.
7)Do not reduce parking.
8)Reduce parking further or eliminate for qualifying units.
9)Remove 500-unit cap and expand boundaries.
10)Reduce fees associated with housing developments.
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Public Comments
More Affordable Housing
"Small Town Feel"
Incentivize Amenities
Prioritize Homelessness
and Other Infrastructure
Enhanced Bicycle and
Transit Infrastructure
Increase Size of Units
No Parking Reduction
Reduce Parking
Expand the Program
Remove Cost Barriers
Public Engagement –Reasons for Support
20
General Response
▪58%in favor of the program,42%opposed to the
program (304 responses).
Top 5 Reasons for Support
▪Increases the supply of housing within downtown.
▪Promotes community goals for economic vitality of
downtown businesses.
▪Provides more options for single household living within
downtown.
▪Promotes community goals for active transportation
such as bicycle and transit infrastructure and reduces
vehicle dependency.
▪Prevents urban sprawl and preserves the city’s green
belt by focusing development within the urban core
rather than expanding out.
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8
Reasons to Support
Increases Housing
Supply
Support Economic
Vitality
Smaller Unit Living
Support Alternative
Transportation
Prevents Sprawl
Support Climate Action
Public Engagement –Reasons for Opposition
21
General Response
▪58%in favor of the program,42%opposed to the
program (304 responses).
Top 5 Reasons for Opposition
▪Not enough parking downtown.
▪The units will not be affordable to those who need it.
▪Adding more housing downtown will create over-
crowding which will increase crime and noise in the
community.
▪Adding more housing will increase traffic throughout the
community.
▪The size of the units within the Program are too small.
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3
Reasons for Opposition
Insufficient
Parking
Unaffordable
Overcrowding
Increases Traffic
Too Small of
Units
Water
Infrastructure
Impacts
Viewshed