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HomeMy WebLinkAboutItem 5h. Affordable Housing Fund Award to HASLO for 736 Orcutt Road Apartments and 279 Bridge Street Family Apartments Item 5h Department: Community Development Cost Center: 4008 For Agenda of: 4/18/2023 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Community Development Director Prepared By: Teresa McClish, Housing Policy and Programs Manager SUBJECT: AFFORDABLE HOUSING FUND AWARD AND ELIGIBLE FEE DEFERRAL LOANS TO HASLO FOR THE 736 ORCUTT ROAD APARTMENT AND 279 BRIDGE STREET FAMILY APARTMENT PROJECTS RECOMMENDATION Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving Affordable Housing Fund Awards to the Housing Authority of San Luis Obispo for the 736 Orcutt Road Apartments and the 279 Bridge Street Family Apartments in the amount of $3,200,000” approving: 1. Award of Affordable Housing Funds in the amount of $2,000,000 and eligible fee deferral loan to assist the Housing Authority of San Luis Obispo (HASLO) with the rehabilitation and construction of the 736 Orcutt Road Apartments located at 736 Orcutt Road; and 2. Award of Affordable Housing Funds and in the amount of $1,200,000 and eligible fee deferral loan to assist the Housing Authority of San Luis Obispo (HASLO) with the construction of the Bridge Street Family Apartments located at 279 Bridge Street. REPORT-IN-BRIEF HASLO is requesting $3,200,000 of City Affordable Housing Funds (including $964k of State and Local Fiscal Recovery Funds (ARPA)), and fee deferral loans, to leverage other federal and state funds and financing and construct 71 -units in two entitled housing projects for extremely low, very-low, and low-income residents and families including those who are experiencing homelessness or at risk for homelessnes s. The two housing projects are located at 736 Orcutt Road, the former Maxine Lewis homeless shelter site, and the family apartment phase within the Bridge Street Apartments located at 279 Bridge Street. Page 223 of 821 Item 5h POLICY CONTEXT Housing and Homelessness is a Major City Goal to expand housing options for all, and continue to facilitate the production of housing, including the necessary supporting infrastructure, with an emphasis on affordable and workforce housing. This includes the collaboration with local non-profit partners and the county, the state, and federal governments to discover and implement comprehensive and effective strategies to reduce chronic homelessness . Page 224 of 821 Item 5h The City’s General Plan 6th Cycle Housing Element1 includes Safety as Goal 1, and Program 1.7 states “Continue to support local and regional solutions to homelessness by funding supportive programs services and housing solutions.” Additionally, providing financial assistance to affordable housing projects is a theme supported throughout the Housing Element. Housing Element Goal 2 is Affordability, which specifically states “Accommodate affordable housing production that helps meet the City’s quantified objectives.” HE Program 2.9 states “Assist with the issuance of tax- exempt bonds, tax credit financing, loan underwriting or other financial tools to help develop or preserve at least 20 affordable units annually through various programs.” Goal 3 in the HE is Housing Conservation, to Conserve existing housing and prevent the loss of safe housing and the displacement of current occupants, and Policies 3.3, 3.5 and Program 3.9 respectively state: 1. “Encourage the construction, preservation, rehabilitation or expansion of residential hotels, group homes, integrated community apartments, and sing le- room occupancy dwellings;” 2. “Encourage and support creative strategies for the rehabilitation and adaptation and reuse of residential, commercial, and industrial structures for housing;” and 3. “Work annually with non-profit organizations, faith-based organizations, or the Housing Authority of the City of San Luis Obispo to encourage rehabilitation of residential, commercial, or industrial buildings to expand extremely low, very -low, low or moderate income rental housing opportunities.” HASLO’s request to conserve and increase housing options available for low-income persons is in alignment with these goals and programs and discussed below in more detail. DISCUSSION Background The City’s Affordable Housing Fund (AHF) receives funding from residential developers to meet the City’s Inclusionary Housing Ordinance (IHO) requirements “in -lieu” of those developers providing actual housing units within their projects. The fund also rec eives funding from commercial developers through commercial linkage fees. State planning and zoning law requires the fund to be used only for the purpose that it was established – to support affordable housing in the City of San Luis Obispo . These funds are awarded at the City Council’s sole discretion, based on previously adopted criteria (Attachment B). Requests for AHF support are evaluated by staff and forwarded to the City Council for consideration and action based on Council established and adopted award criteria. 1 City of San Luis Obispo 6th Cycle Housing Element Page 225 of 821 Item 5h The AHF has been augmented with funding through the congressional American Rescue Plan Act (ARPA2) that approved $350 billion for state, local, territorial, and Tribal governments in form of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). This historic bill continues to provide economic stimulus funding to the City of San Luis Obispo to reimburse lost revenue and help support economic recovery efforts through a total of $13.5 million authorized and programmed into the 2021-2023 financial plan. At the February 15, 2022, City Council meeting, the Council directed staff to prioritize a portion of ARPA funding towards housing and homelessness, and at the June 7, 2022 City Council meeting, the Council invested a total of $2,964,467 toward affordable housing. The funding was allocated in the 2022-2023 Supplemental Budget for at-risk populations or extremely low and very low-income and/or homeless persons most impacted by COVID-19. Funds were placed into the City’s Affordable Housing Fund3 awaiting appropriation via an affordable housing fund award, to be made at the City Council’s sole discretion. An AHF award for $2 million was made in April 2022 to HASLO for the Anderson Hotel ($1.7M) and Transitions Mental Health Associat ion for the Palm Street Studios ($300k)4. The SLFRF funds remaining within the AHF total $964,467. Overview of Requests HASLO is requesting a total of $3,200,000 for two affordable housing projects in the City (Attachment C). The first request is $2,000,000 to assist with the rehabilitation and construction of a 40 unit residential project – 39 units for low-income households and an exempt manager’s unit at the former Maxine Lewis Homeless Shelter site. The property was previously used to provide 49 shelter beds to serve unhoused community members prior to the construction of the Homeless Services Center, located at 40 Prado. The project was entitled by the City on August 24, 2022, and will serve those experiencing homelessness, or at risk for homelessness (Attachment D). A total of $964,467 of SLFRF funds is included in the total $2 million requested AHF award. City Affordable Housing Funds will leverage state and Federal funds including funds allocated through a Community Development Block Grant award of $420,541.67. Additionally, federal Housing and Urban Development Section 8 project-based rental assistance will be provided, allowing the project to serve qualified applicants regardless of income level, and to quickly house those experiencing homelessness or at risk of homelessness. 2 On June 7, 2022, the Council appropriated $10 million for lost revenue with $9.2 million appropriated to the Infrastructure Investment Fund, $700,000 for lost parking revenue and $100,000 for grants for health and human services grants. $2.9 million was set aside for affordable housing for populations impacted by COVID-19 and $600,000 for broadband related costs. 3 Resolution 11333 approving the allocation of $13,564,467 in State and Local Fiscal Recovery Funds in Accordance with the U.S. Treasury Final Rule 4 Resolution 11321 approving affordable housing fund awards to HASLO for the Anderson Hotel and THMA for the Palm Street Studios Page 226 of 821 Item 5h The second request is for Phase I of the Bridge Street Project consisting of family apartments for 31 units for low-income family households including one manager’s unit (the total units approved for the project is 94 residential units to be completed in two future project phases). HASLO is requesting $1,200,000 in AHF for the project in addition to a fee deferment loan. The project was entitled on August 25, 2021 and includes play areas, a community courtyard along Meadow Creek, pedestrian and bicycle linkages that provide safe and convenient access to transportation and adjacent neighborhoods and services (Attachment E). The Bridge Street Project will also use City Affordable Housing Funds to leverage state and Federal funds. Project based rental assistance will be provided, allowing the project to serve extremely low, very low, and low-income households to ensure that residents do not pay more than 30% of their actual income for rent, including utilities. The request for funds for 736 Orcutt Road Apartments and the Bridge Street Family Apartments are based upon various competitive sources of financing that may require an AHF request adjustment in April. However, the total amount of funds requested will not exceed $3,200,000. Prior to escrow regulatory agreements will be prepared for AHF, including SLFRF, and fee deferral loans. HALSO is also requesting fee deferral loans for up to 55-years, as allowed by state law for eligible service and impact fees for each project. The amount of the fee deferral loans is determined once building permits are ready to be issued. AWARD CRITERIA In making its recommendations to City Council for how Affordable Housing funds should be allocated for affordable or special needs housing projects, staff uses adopted criteria (See Resolution No. 9263 (2001 Series), Attachment B) for the Affordable Housing Fund program including eligibility, need, suitability, timing, financial effectiveness, and readiness. The following is an analysis of the requests relative to the criteria. Eligibility. Use of the AHF for the requested purpose will increase or improve the City’s affordable housing inventory and promote General Plan policies regarding housing, as follows: Requested HASLO projects are eligible for Affordable Housing Funds because they each increase the City’s affordable housing inventory and implement se veral General Plan policies regarding housing. The projects will increase the supply of affordable housing by developing 71 units for households that are within the extremely low, very low, or low-income range. The units will be restricted as affordable h ousing by the Low-Income Housing Tax Credit (LIHTC) program for a minimum of 55 -years. HASLO, through its public agency status, will ensure that the housing remains permanently affordable and operate the housing and ensure long-term compliance with all regulatory agreements and financial and physical sustainability of the property. Page 227 of 821 Item 5h Need. There exists a substantial or overarching need for the type of units to be assisted, as follows: Below Market Rate housing is a critical need in the City and County of San Luis Obispo. Rapidly rising rents have increased the financial burden on low-income people and the median rental household in the County spends 38% of its income on housing.5 The City’s 6th Cycle Housing Element, adopted in 2020 documents substantial unmet need for the previous housing cycle. HASLO will use its affiliate non-profit, San Luis Obispo Non-Profit Housing Corporation, as managing general partner in the Limited Partnership ownership entity formed for purposes of the LIHTC program. As property management agent, HASLO coordinates with area non-profit service providers to accept homeless and other special high-need referrals and provides resident and supportive services. Suitability. The projects to be assisted are appropriate for location both in terms of land use and design, as follows: Both proposed housing projects can safely and conveniently access services and amenities. The 736 Orcutt Road apartments are located 2.5 miles to County Services and 1.7 miles to downtown SLO; 1,200 feet from the railroad safety trail, which conveniently and safely connects pedestrians quickly to downtown; and less than 3/4 of a mile away from a grocery store that offers fresh produce, meat, and other staples. The Bridge Street Apartments are located 1.2 miles from County services and less than a mile to downtown SLO; and less than 3/4 of a mile away from a grocery store that offers fresh produce, meat, and other staples. Timing. The projects would better serve the City’s needs if it were built immediately as opposed to later, as follows: Both projects have site control and have received all City discretionary approvals. The provision of below market rate rental housing units will advance the Major City Goal for Housing and Homelessness; implem ent the City’s Homelessness Response Strategic Plan; and increase production of units identified in the Regional Housing Needs Allocations for housing affordable to residents or families in low or extremely low-income categories. Both funding requests are for low-income or below, reducing the City’s current remaining RHNA for these categories from 331 to 260 units. Financial Effectiveness. But for the requested assistance, the project would not be economically feasible; or AHF funding “leverages” signif icant additional funding from other sources, as follows: Both projects offer a highly effective use of the City AHF. Funding for the 736 Orcutt Road Apartments would constitute 10.2% of project funding. The project leverages Housing Trust Fund ($1,000,000), County and City funds ($420,541) and low-income housing tax credits ($11.7 million). 5The San Luis Obispo Countywide Plan to Address Homelessness 2022-2027 Page 228 of 821 Item 5h HASLO is assembling various competitive sources of financing for the Bridge Street Family Apartment project and will apply for low-income housing tax credits in July 2023. Readiness. The project has all necessary City approvals and is ready to proceed, as follows: Both the 736 Orcutt Road Apartments and the Bridge Street Family Apartments do not need to obtain any further City discretionary approvals. Upon the award of the City, HASLO will apply for building permits anticipated in the fall of 2023 for Bridge Street Family Apartments and January 2024 for the 736 Orcutt Road Apartments . Previous Council or Advisory Body Action The Council approved Affordable Housing Fund award criteria in 2001 and funding investment allocations specific for SLFRF in 2022, as discussed above in the Background section. Both projects for which HASLO is seeking funding were entitled in 2021 and 2022 as discussed above in the Funding Overview section. Public Engagement This item is on the agenda for the April 18, 2023, City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting. CONCURRENCE The Finance Department concurs with the Affordable Housing Fund balance. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended funding actions in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes/No Budget Year: 2022-23 Funding Identified: Yes/No Page 229 of 821 Item 5h Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ $ $ $ State Federal Fees Other: AHF $3,704,677.95 $3,200,200 $504,678 Total $3,704,677.95 $3,200,200 $504,678 Total funding available for project awards is $3,704,677.95. Providing the requested funds, a total of $3,200,000.00, would result in a remaining balance of $504,678 that could be reserved for future projects. Funding the 736 Orcutt Road and Bridge Street Family Apartment projects that contain a total of 71 units significantly assist s in leveraging additional funding to complete the projects. The investment would equate to $45,070.42 per unit if recommended requests are approved, or $31,486.38/unit of AHF allocation without consideration of the $964,467 of SLFRF funds which is in line with previous awards. ALTERNATIVES 1. Council could decide not to authorize AHF awards for the proposed projects. This action is not recommended because the project directly aligns with the Major City Goal for Housing and Homelessness and is consistent with the Housing Element of the General Plan. 2. Council could decide to approve AHA awards for a different amount. The City Council can approve an award for a different amount other than the recommendation. This is not recommended without concurrence from the applicant as the projects have carefully considered their need for assistance and the amounts requested reflect what is needed for successful financing of the projects. 3. Council could continue consideration of the proposed awards. The City Council can direct staff to return with additional information regarding the funding request s o that a final decision on the award amount can be made. Staff does not recommend this action because this delay in time would not allow for HASLO to close gap funding needed to close escrow on the respective projects and properties. ATTACHMENTS A - Draft Resolution for Award of AHA funds to HASLO for the 736 Orcutt Road Apartments and the Bridge Street Family Apartments B - Resolution No. 9263 (2001 Series) Award Criteria for Affordable Housing Funds C - Letter of request from HASLO D - Approval for the 736 Orcutt Road Apartments E - Approval for the Bridge Street Apartment Project Page 230 of 821 R ______ RESOLUTION NO. _____ (2023 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AFFORDABLE HOUSING FUND AWARDS TO THE HOUSING AUTHORITY OF SAN LUIS OBISPO FOR THE 736 ORCUTT ROAD APARTMENTS AND THE 279 BRIDGE STREET FAMILY APARTMENTS IN THE AMOUNT OF $3,200,000 WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on April 18, 2023, for the purpose of considering requests for Affordable Housing Fund (AHF) assistance; and WHEREAS, the proposed projects, 736 Orcutt Road Apartments and the Bridge Street Apartments Family Project, by The Housing Authority of S an Luis Obispo (HASLO) meet AHF award eligibility criteria established by the City Council in Resolution No. 9263 (2001 Series); and WHEREAS, Housing Element policies and programs encourage and support the preservation and rehabilitation of affordable housing in the City; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff at the meeting; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The City Council does hereby make the following findings in support of the proposed AHF awards: 1. Eligibility. Use of the AHF for the requested purpose will increase or improve the City’s affordable housing inventory and promote General Plan policies regarding housing, as follows: Requested HASLO projects are eligible for Affordable Housing Funds because they each increase the City’s affordable housing inventory and implement several General Plan policies regarding housing. The projects will increase the supply of affordable housing for 71 units residents or families respectively, who are within the extremely low, very low, or low-income range. The units will be restricted as affordable housing by the Low-Income Housing Tax Credit (LIHTC) program for a minimum of 55-years. HASLO, through its public agency status, will ensure that the housing remains permanently affordable and operate the housing and ensure long-term compliance with all regulatory agreements and financial and physical sustainability of the property. Page 231 of 821 Resolution No. _____ (2023 Series) Page 2 R ______ 2. Need. There exists a substantial or overarching need for the type of units to be assisted, as follows: Below Market Rate housing is a critical need in the City and County of San Luis Obispo. Rapidly rising rents have increased the financial burden on low-income people and the median rental household in the County spends 38% of its income on housing. The City’s 6th Cycle Housing Element, adopted in 2020, documents substantial unmet need. HASLO will use its affiliate non-profit, San Luis Obispo Non-Profit Housing Corporation, as managing general partner in the Limited Partnership ownership entity formed for purposes of the LIHTC program. As property management agent, HASLO coordinates with area non- profit service providers to accept homeless and other special high need referrals and provides resident and supportive services. 3. Suitability. The projects to be assisted are appropriate for location both in terms of land use and design, as follows: Both proposed housing projects can safely and conveniently access services and amenities. The 736 Orcutt Road apartments are located 2.5 miles to County Services and 1.7 miles to downtown SLO; 1,200 feet from the railroad safety trail, which conveniently and safely connects pedestrians quickly to downtown; and less than 3/4 of a mile away from a grocery store that offers fresh produce, meat, and other staples. The Bridge Street Apartments are located 1.2 miles from County services and less than a mile to downtown SLO; and less than 3/4 of a mile away from a grocery store that offers fresh produce, meat, and other staples. 4. Timing. The projects would better serve the City’s needs if it were built immediately as opposed to later, as follows: Both projects have site control and received all City discretionary approvals. The provision of below market rate rental housing units will advance the City Major City Goal for Housing and Homelessness; implement the City’s Homelessness Response Strategic Plan; and make progress on state Regional Housing Needs Allocations (“RHNA”) for housing affordable to residents or families in low ore extremely low-income categories. Both funding requests are for low and below income levels reducing the City’s current remaining RHNA for these categories from 331 to 260 units. 5. Financial Effectiveness. But for the requested assistance, the project would not be economically feasible; or AHF funding “leverages” significant additional funding from other sources, as follows: Both projects offer a highly effective use of the City AHF. Funding for the 736 Orcutt Road Apartments would constitute 10.2% of project funding. The project leverages Housing Trust Fund ($1,000,000), County and City funds ($420,541) and low-income housing tax credits ($11.7 million). Page 232 of 821 Resolution No. _____ (2023 Series) Page 3 R ______ HASLO is assembling various competitive sources of financing for the Bridge Street Family Apartment project and will apply for low-income housing tax credits in July 2023. 6. Readiness. The project has all necessary City approvals and is ready to proceed, as follows: Both the 736 Orcutt Road Apartments and the Bridge Street Family Apartments do not need to obtain any further City discretionary approvals. Upon the award of the City, HASLO will apply for building permits anticipated in the fall of 2023 for Bridge Street Family Apartments and January 2024 for the 736 Orcutt Road Apartments. SECTION 2. Environmental Determination. The project to award affordable housing funds is exempt from environmental review per the California Environmental Quality Act as it does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Gu idelines Sec. 15378. SECTION 3. Affordable Housing Fund Award for The Housing Authority of San Luis Obispo (HASLO). The City Council does hereby approve an Affordable Housing Fund award in an amount not to exceed $3,200,000, for HASLO for the 736 Orcutt Road Apartments and the Bridge Street Family Apartment subject to the following condition of approval: 1. Prior to release of any portion of the AHF award, the applicants shall enter into an affordability agreement with the City. a. For 736 Orcutt Road Apartments, it shall be for forty (40) for -rent affordable housing units located at 736 Orcutt Road, for a term of fifty- five (55) years, which will be recorded against the title of the property. b. For the Bridge Street Family Apartment project at 279 Bridge Street, it shall be for thirty-one (31) for-rent affordable housing units, for a term of fifty-five (55) years, which will be recorded against the title of the property. Page 233 of 821 Resolution No. _____ (2023 Series) Page 4 R ______ 2. The Community Development Director is authorized to adjust th e amount of funding between the two projects awarded at the request of HASLO on the condition that the change improves the competitiveness of the projects for receiving other funding awards, such as tax credits from the State. In no case may the total amount of funding awarded exceed $3,200,000. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 2023. ___________________________ 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 234 of 821 RESOLUTION NO. 9263 (2001 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING AWARD CRITERIA AND A REVIEW PROCESS FOR ALLOCATING AFFORDABLE HOUSING FUNDS. WHEREAS, the City Council adopted Ordinance 1348 (1999 Series) establishing an Affordable Housing Fund for the collection and distribution of in -lieu housing fees to promote affordable housing in San Luis Obispo; and WHEREAS, as a result of the in -lieu fee payments to the City under the Inclusionary Housing Ordinance, the City has a balance of approximately $400,000 in the Affordable Housing Fund, and this fund is available to support affordable housing in San Luis Obispo at the sole discretion of the City Council; and WHEREAS, the City received requests by Judson Terrace Lodge and Sojourn Services, Inc. for the use of $215,000 and $25,000, respectively, of Affordable Housing Funds; and to evaluate these and future funding requests in a fair and timely manner, Council wishes to establish award criteria and a review process for the Affordable Housing Fund; and WHEREAS, the City Council held a meeting on December 4, 2001 to consider possible award criteria that balance the need to provide a fair, open and timely funding award process with the desire to maintain funding flexibility to address local housing needs and opportunities; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that based on its deliberations, public comments, the staff report, and on State law, the following: SECTION 1. Affordable Housing Fund Award Criteria. The City Council establishes the following criteria for evaluating requests for use of the Affordable Housing Fund: 1. Eligibility. Use of the Affordable Housing Fund (AHF) for the requested purpose will increase or improve the City's affordable housing inventory and promote General Plan policies regarding housing. 2. Need. There exists a substantial or overarching need for the type of housing to be assisted. 3. Suitability. The project to be assisted is appropriate for its location, both in terms of land use and design. 4. Timing. The project would be better serve the City's needs if it were built immediately as opposed to later. R 9263 Page 235 of 821 I OI_ l Resolution No. 9263 (2001 Series) Page 2 5. Financial Effectiveness. But for the requested assistance, the project would not be economically feasible; or AHF funding "leverages" significant additional funding from other sources. 6. Readiness. The project has all necessary City approvals and is ready to proceed. SECTION 2. Use of Award Criteria. The Council will apply the above criteria when evaluating funding requests. Requests that most closely meet the criteria will be given the most favorable consideration in allocating Affordable Housing Funds. Under no circumstances is Council obligated to award Affordable Housing Funds. The decision whether to allocate funds and how much is at the sole discretion of the City Council whose decision is final. SECTION 3. Review Process. The Community Development Director shall be responsible for processing requests for use of Affordable Housing Funds. Such requests shall usually be considered concurrent with review of the City's Community Development Block Grant Program. The Director is authorized to bring urgent funding requests to the Council at any time, irrespective of the above review cycle. SECTION 4. Funding Agreements. Recipients of Affordable Housing Funds shall be required to execute an agreement with the City describing the purpose and terms of funding. The project or program to be funded shall meet the City's Affordable Housing Standards, including the requirement for an affordability term of at least thirty (30) years, and City equity participation in the project where feasible and appropriate. The City Administrative Officer is authorized to execute such agreements for the City. Upon motion of Council Member Schwartz; seconded by Vice Mayor Marx, and on the following roll call vote: AYES: Council Members Ewan, Mulholland,,Schwartz, Vice Mayor Marx, and Mayor Settle NOES: None ABSENT: None The foregoing resolution was adopted this 4h day of December 2001 ATTE T: r Lee Price, City Clerk. Page 236 of 821 1. Resolution No. 9263 (2001 Series) Page 3 APPROVED AS TO FORM: Page 237 of 821 Page 238 of 821 Page 239 of 821 Page 240 of 821 Page 241 of 821 Page 242 of 821 City of San Luis Obispo, Community Development, 919 Palm Street, San Luis Obispo, CA, 93401-3218, 805.781.7170, slocity.org August 24, 2022 Michael Burke San Luis Obispo Non-Profit Housing Corp. 487 Leff Street San Luis Obispo, CA 93401 Subject: ARCH-0221-2021 & AFFH-0407-2022 (736 Orcutt Road) Development Review of a new three-story mixed uses development consisting of 40 residential units for low-income households, and 850 square feet of commercial space. The project includes a density bonus of 80%, a maximum height extension of 40 feet where 35 is normally required, a parking reduction of 57%, and a Creek Setback exception of 6 feet where 20 feet is normally required, a front yard setback exception of 10 feet where 15 feet is normally required, and a side yard setback of 5 feet, where 10 feet is normally required. Project is categorically exempt from environmental review (CEQA) Dear Michael Burke: On August 24, 2022, I reviewed your application to construct a new three-story structure consisting of 40 residential dwelling units dedicated to low-income households. The property was previously used as the Maxine Lewis Homeless Shelter which provided 49 beds to serve unhoused community members. The project will preserve the existing residence on the site for the continued use as an 850 square foot office. All other existing structures will be demolished to accommodate the proposed project and site improvements. The project includes a front yard setback reduction of 10- feet, where 15-feet is normally required for structures over 20-feet in height along the front yard in the Commercial Services (C-S) zone. In accordance with Zoning Regulations Section 17.36.020 Table 2-20, there is no side yard setback in the C-S zone unless adjacent to a zone with a minimum setback requirement, in which case the adjoining setback shall be as provided in the zone of the adjacent lot. The adjoining lot to the west of the subject property is zoned R-3 (Medium Residential Density), which requires a varying setback based on building height, where a 10-foot setback is required for structures with a maximum height of over 35 feet. The project includes a side yard setback exception of 5-feet along the west property line, where 10 feet is normally required. In accordance with Zoning Regulations Section 17.140.040, the project includes a density bonus of 80% to increase the density allowance of the property from 11.38 density units to 21 density units. To qualify for the density bonus, the project must provide at least 5 units (32% of the base density allowance) dedicated to low-income households. The proposed project includes 39 units to be dedicated to low-income households (plus 1 unit for the manager quarters for a total of 40 units). The project is proposed as a 100% affordable housing project and includes two affordable housing incentives requests: 1) a maximum height extension to allow a 40-foot-tall structure where normally limited to 35-feet; and 2) a 57% reduction in on-site parking requirements to provide 19 parking spaces, where 44 spaces are normally required. In accordance with Government Code 65915(e)(1), the project also includes a waiver from development standards for the creek setback Page 243 of 821 ARCH-0221-2021 & AFFH-0407-2022 736 Orcutt Road Page 2 requirement to be reduced to 6 feet, where 20 feet is normally required. The waiver is requested because full compliance with this development standard would physically preclude the project from being built with the requested density bonus due to existing site constraints. The project design was reviewed and recommended for approval by the Architectural Review Commission (ARC) on July 18, 2022 (vote 5-0-2). After careful consideration, your plans are approved, based on findings and subject to the following conditions: Findings 1. As conditioned, the establishment, maintenance, or operation of the proposed project will not, in the circumstances of this particular case, be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity of the proposed use, or detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the City because the project has been designed to address noise, glare, and pedestrian traffic that is compatible and consistent with the mix of residential and commercial uses on site. 2. The project is consistent with Land Use Element Policy 2.3.6 “Housing and Businesses” and 3.8.5 (Mixed Uses) because the project provides residential dwellings within a commercial district near neighborhood commercial centers, major activity nodes and transit opportunities. Housing at this location is compatible with the proposed and existing commercial uses on-site and on adjacent properties. 3. As conditioned, the proposed project is consistent with the General Plan Land Use Element for this location since the project proposes to construct additional housing in close proximity to existing mixed-use projects that include commercial service uses and residential uses that are consistent with activities envisioned by the Services and Manufacturing Land Use designation. 4. The project is consistent with the Housing Element because the project provides a variety of residential types, sizes, and style of dwellings (HE Goal 5), and includes the development of housing close to activity centers to utilize land efficiently (HE 5.3). The project supports Housing Element Policies related to inclusion and expansion of affordable housing units within the City (HE 1.1, 1.2, 2.1, 2.2, 7.1, 7.2, and 8.1). 5. The project is consistent with Housing Element Policies 6.1 and 7.4 because the project supports the development of more housing in accordance with the assigned Regional Housing Needs Allocation and establishes a new neighborhood, with pedestrian and bicycle linkages that provide direct, convenient and safe access to adjacent commercial areas. 6. As conditioned, the project complies with all applicable provisions of the Zoning Regulations as described within the property development standards for the C-S zone and Mixed-Use Development. The proposed uses are compatible with the project site and with existing and potential uses in the vicinity which include commercial services and residences. 7. The site is physically suitable in terms of public utilities, traffic generation, and public emergency vehicle access, because the proposed project is within an existing developed neighborhood that provides adequate utilities, vehicle parking, and site circulation. The site is adequate for the project in terms of size, configuration, topography, and other applicable Page 244 of 821 ARCH-0221-2021 & AFFH-0407-2022 736 Orcutt Road Page 3 features, and has appropriate access to public streets with adequate capacity to accommodate the quantity and type of traffic expected to be generated by the use. Development Review Findings 8. The Architectural Review Commission (ARC) reviewed the project on July 18, 2022, and recommended finding the project consistent with the City’s Community Design Guidelines applicable to projects in the commercial C-S zone. The ARC recommended final approval to the Community Development Director, subject to a suggestion to the applicant to switch the office use with the proposed community room, which have been incorporated as conditions of approval. 9. As conditioned, the project is consistent with the Community Design Guidelines for commercial and multi-family housing design and infill development because the architectural style is complementary to the surrounding neighborhood and is in substantial compliance with the prevailing setback pattern of the neighborhood. 10. As conditioned, the project design is consistent with the Community Design Guidelines by providing a variety of architectural treatments that add visual interest and articulation to the building design that are compatible with the design and scale of the existing structures in the surrounding neighborhood (CDG, Chapter 5.3). 11. As conditioned, the project respects the privacy of adjacent developments through appropriate building orientation and windows that minimize overlook and do not impair the privacy of the indoor or outdoor living space of any neighboring properties. 12. The proposed height, mass and scale of the project will not negatively alter the overall character of the neighborhood or the street’s appearance because the development is designed in a manner that does not deprive reasonable solar access to adjacent properties. The project incorporates vertical and horizontal wall plan offsets, which provide a high-quality and aesthetically pleasing architectural design. 13. The proposed height, mass and scale of the project is necessary to provide additional dwelling units to be dedicated affordable for low-income households. Front Yard Setback Exception Findings 14. In accordance with Zoning Regulations Section 17.70.170.D.2, the project includes a request for a front yard setback exception to allow a 10-foot setback where a 15-foot setback is normally required for structures greater than 20 feet in height in the C-S zone. The proposed front yard setback reduction is appropriate and consistent with the intent of the Zoning Regulations and General Plan because the setback is limited to a small portion of the structure that accounts for approximately 10 percent of the frontage of the property and all remaining portions of the project comply with front yard setback requirements. 15. The front yard setback exception is limited to a small portion of the property that consistent with the character of the neighborhood as existing development to the east and south provide front yard setbacks that are less than 10 feet. Page 245 of 821 ARCH-0221-2021 & AFFH-0407-2022 736 Orcutt Road Page 4 16. The proposed front yard setback exception does not create or contribute to any adverse effects on surrounding properties because the project is consistent with the neighborhood prevailing setback pattern that will have no greater effect on traffic, vehicular or pedestrian safety, noise, aesthetic, or lighting that would be inconsistent with development opportunity of neighboring properties. 17. Site characteristics and existing improvements make strict adherence to the Zoning Regulations impractical due odd shape of the property, and the creek setback along the north and east sides of the property, the project nonetheless conforms with the intent of the Zoning Regulations because: Zoning Regulations Section 17.70.170.D.2.a which allows for the Director’s discretion to reduce the street side setbacks to 10 feet for structures; the request for the 10-foot setback is consistent with the neighborhood because several adjacent structures were developed with approved with street setbacks of less than 10 feet. Side Yard Setback Exception Findings 18. The project includes a request for a side yard setback reduction along the west property line to reduce the required setback from 10-feet to 5-feet. The proposed exception is appropriate because the adjacent property is reserved as a private drive for fire access and the resulting development will not deprive the adjacent property of any reasonable solar access. 19. The proposed side yard setback exception is of a minor nature in the context of the prevailing setback pattern within the commercial district along Orcutt Road. The project plans included a solar study indicating that the resulting project will not result in any negative impacts related to solar exposure along the adjacent property due to the orientation of the project and topography of the site. Density Bonus and Alternative Incentives Findings 20. The proposed project qualifies for an 80% density bonus by providing 32% of the base density units (five units) as dedicated housing for low-income households. The project will provide quality affordable housing consistent with the intent of Chapter 17.140 of the Zoning Regulations, the requested density bonus and reduction to site development standards and parking requirements are necessary to facilitate the production of affordable housing units associated with a mixed-use development project. The site development cannot be feasibly accomplished with a redesign of the project, because the Density Bonus Law mandates that concessions from development standards shall not be denied in which would result in a reduction of residential units, and requiring compliance with the full setback requirement would result in design constraints that would result in a reduction of the number of units requested which would violate Government Code § 65915. 21. The requests for a density bonus and reduction to site development standards for increased maximum height and reduction of the parking requirements are consistent with the intent of Housing Element programs 2.17, 6.10, and 6.19, and the alternative affordable housing incentives outlined in Section 17.140.070 of the Zoning Regulations. 22. The request for a development standard waiver for the creek setback to reduce the setback requirement to 6 feet, where 20 feet is normally required, will not negatively alter the overall character of the neighborhood or the streets appearance because the exception is internal to the Page 246 of 821 ARCH-0221-2021 & AFFH-0407-2022 736 Orcutt Road Page 5 project site. Development within the creek setback area will not impact any of the native biological resources because no native riparian woodland vegetation exists along this stretch of the creek and setback area within the subject property, and the Biological Report (prepared by Terra Verde Environmental Consulting, 2022) concluded that there is no suitable habitats for special status species on or near the project site. The City’s creek setback regulations provide provisions for setback exceptions that is consistent with State and Federal Law, and the alternative incentive request does not result in any specific adverse impact to the public health, safety, or physical environment. 23. The requests for a density bonus and reduction to site development standards to reduce the required parking to provide 19 parking spaces on-site where 44 spaces are normally required is necessary to facilitate the production of affordable housing units in accordance with Density Bonus Law and consistent with the intent of Housing Element programs 2.17, 6.10, and 6.19, and the alternative affordable housing incentives outlined in Section 17.140.070 of the Zoning Regulations. Parking Reduction Findings 24. The proposed 57% parking reduction to provide 19 parking spaces on-site, where 44 spaces are normally required, is allowed in accordance with Density Bonus Law, and is further supported by the parking requirements established within Caltrans “Affordable Housing Trip Generation Strategies and Rates” for 100% affordable housing projects. 25. The proposed parking reduction is in conformance with Zoning Regulations Section 17.70.050.C.3.b which stipulates projects may reduce the onsite vehicle parking by one space for each 5 bicycle parking spaces provided in excess of required parking, the project provides 12 additional bicycle parking spaces on-site to further reduce the required parking by two vehicle spaces. 26. As conditioned and in accordance with the Institute of Transportation Engineers (ITE), the peak parking demand for the project results in a maximum of 19 parking spaces during peak demand, where the project provides 19 parking spaces on site. The project qualifies for the parking reduction in accordance with Zoning Regulations Section 17.72.050.C and the ITE Parking Demand, where the peak hours of use will not overlap or coincide to the degree that peak demand for parking spaces from all uses or projects will be greater than the total supply of spaces. 27. In accordance with the California Governor’s Office of Planning and Research (OPR) affordable housing within urban areas reduce vehicle miles traveled throughout the community due to the City’s current jobs-housing imbalance, resulting in reduced traffic throughout the City and County. The project is also located in close proximity to the City’s bicycle and pedestrian network (Railroad Safety Trail) and within walking distance of two bus stops, which provide ease of access to alternative modes of transportation, further reducing the dependency of single occupant vehicles within the project. California Environmental Quality Act (CEQA) Finding 28. The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) (Class 32, Infill Exemption) because the project is consistent with General Plan Page 247 of 821 ARCH-0221-2021 & AFFH-0407-2022 736 Orcutt Road Page 6 policies for the land use designation and is consistent with the applicable zoning designation and regulations. The project site occurs on a property within city limits, of no more than five acres, substantially surrounded by urban uses, with no value as habitat for endangered, rare, or threatened species as identified in the Biological Resource Survey provided by Terra Verde Environmental Consulting (May 5, 2022). Based on compliance with existing regulations, approval of the project would not result in any significant effects relating to noise, air quality, or water quality, and is served by required utilities and public services. The project has been reviewed by the City Public Works Department, Transportation Division, and no significant traffic impacts were identified, based on the size and location of the project. Conditions Planning 1. Final project design and construction drawings shall be in substantial compliance with the project plans as amended and approved through this development review process. A separate, full-size sheet shall be included in working drawings submitted for a building permit that lists all conditions of project approval as Sheet No. 2. Reference should be made in the margin of listed items as to where in plans requirements are addressed. Any change to approved design, colors, materials, or other conditions of approval must be approved by the Community Development Director or reviewed by the Architectural Review Commission with a recommendation to the Community Development Director or Planning Commission, as deemed appropriate. 2. Demolition of the existing building shall not commence until a permit has been issued by the building official. The applicant shall comply with Municipal Code Chapter 15.04 Construction and Fire Prevention Regulations, Appendix Chapter A2 Demolition and Moving of Buildings, including but not limited to, the following: the applicant shall provide evidence that for a period of not less than 90 days from date of permit application, the building was advertised in a local newspaper on at least 3 separate occasions not less than 15 days apart, as available to any interested person to be moved, and submit historic documentation for the structure. 3. Plans submitted for a building permit shall call out the colors and materials of all proposed building surfaces and other improvements. Colors and materials shall be consistent with the color and material board submitted with the Development Review application. 4. Plans submitted for a building permit shall include recessed window details or equivalent shadow variation, and all other details including but not limited to awnings, and railings. Plans shall indicate the type of materials for the window frames and mullions, their dimensions, and colors. Plans shall include the materials and dimensions of all lintels, sills, surrounds recesses and other related window features. Plans shall demonstrate the use of high-quality materials for all design features that reflect the architectural style of the project and are compatible with the neighborhood character, to the approval of the Community Development Director. 5. The property owner shall be responsible for maintaining and updating the current parking calculation for the commercial component of the project upon the submittal of Planning and Page 248 of 821 ARCH-0221-2021 & AFFH-0407-2022 736 Orcutt Road Page 7 Building permits for tenant changes or improvements, and/or each business license, to ensure the site does not become under-parked. 6. All surface parking spaces must be available for common use and not exclusively assigned to any individual use, required residential parking may be reserved, but commercial parking must be made available for guests or overflow from residences. 7. Plans submitted for a building permit shall clearly depict the location of all required short and long-term bicycle parking for all intended uses. Plans shall show all areas designated for long-term bicycle parking such as bicycle lockers, interior spaces, or storage rooms. Short- term bicycle racks shall be consistent with the City Active Transportation Plan Design Guidelines and feature “hi-low style” campus racks (such as “Peak Racks”) or City-approved equivalent (inverted “U” rack designs shall not be permitted) and shall be installed in close proximity to, and visible from, the main entries into the buildings. Sufficient detail shall be provided about the placement and design of bike racks, lockers, and interior spaces to demonstrate compliance with relevant Engineering Standards and Community Design Guidelines, to the satisfaction of the Public Works and Community Development Directors. 8. The locations of all lighting, including bollard style landscaping or path lighting, shall be included in plans submitted for a building permit. All wall-mounted lighting fixtures shall be clearly called out on building elevations included as part of working drawings. All wall- mounted lighting shall complement building architecture. The lighting schedule for the building shall include a graphic representation of the proposed lighting fixtures and cut- sheets on the submitted building plans. The selected fixture(s) shall be shielded to ensure that light is directed downward consistent with the requirements of the City’s Night Sky Preservation standards contained in Chapter §17.70.100 of the Zoning Regulations. 9. Mechanical and electrical equipment shall be located internally to the building. With submittal of working drawings, the applicant shall include sectional views of the building, which clearly show the sizes of any proposed condensers and other mechanical equipment. If any condensers or other mechanical equipment is to be placed on the roof, plans submitted for a building permit shall confirm that parapets and other roof features will adequately screen them. A line-of-sight diagram may be required to confirm that proposed screening will be adequate. This condition applies to initial construction and later improvements 10. The storage area for trash and recycling cans shall be screened from the public right-of-way consistent with §17.70.200 of the Zoning Regulations. The subject property shall be maintained in a clean and orderly manner at all times, free of excessive leaves, branches, and other landscape material. The applicant shall be responsible for the clean-up of any landscape material in the public right-of-way. 11. The applicant shall submit a landscaping plan containing an irrigation system plan with submittal of working drawings for a building permit. The legend for the landscaping plan shall include the sizes and species of all groundcovers, shrubs, and trees with corresponding symbols for each plant material showing their specific locations on plans. The surfaces and finishes of hardscapes shall be included on the landscaping plan. 12. Plans submitted for construction permits shall include elevation and detail drawings of all walls and fences. Fences, walls, and hedges will comply with the development standards described in the Zoning Regulations (§17.70.070 –Fences, Walls, and Hedges). Page 249 of 821 ARCH-0221-2021 & AFFH-0407-2022 736 Orcutt Road Page 8 13. The location of any required backflow preventer and double-check assembly shall be shown on all site plans submitted for a building permit, including the landscaping plan. Construction plans shall also include a scaled diagram of the equipment proposed. Where possible, as determined by the Utilities Director, equipment shall be located inside the building within 20 feet of the front property line. Where this is not possible, as determined by the Utilities Director, the back-flow preventer and double-check assembly shall be located in the street yard and screened using a combination of paint color, landscaping and, if deemed appropriate by the Community Development Director, a low wall. The size and configuration of such equipment shall be subject to review and approval by the Utilities and Community Development Directors. 14. Prior to building occupancy, the owner of the property shall provide a Residential Noise Notice in writing for residential occupants stating that the property is located within a commercial zone in an urban-type environment and that noise levels may be higher than a strictly residential area. 15. If the required building permits are not submitted for the site development within three years of this discretionary action, the approval shall expire. Requests for renewals may be granted in conformance with §17.104.070. Housing Programs – Community Development Department 16. Prior to issuance of building permits, the City and the applicant shall enter into an Affordable Housing Agreement, to be recorded in the office of the county recorder. The agreement shall specify mechanisms or procedures to assure the continued affordability and availability of the extremely- low, very-low-, and low-income households, to the satisfaction of the Community Development Director. Engineering – Community Development/Public Works 17. The project improvements shall comply with the City Engineering Standards and Standard Specifications in effect at the time of permit application. 18. Any sections of damaged or displaced curb, gutter, or sidewalk located along the parcel frontage shall be repaired or replaced as a condition of this redevelopment. The building plan submittal shall clearly show and delineate the limits and type of repair or replacement to the satisfaction of the Public Works Department. Contact this office to coordinate a site inspection with Public Works staff so that the plans can reflect any agreement regarding the proposed improvements and minimum requirements. 19. The directional curb ramp for the Garibaldi Ave. (private street) crossing shall be upgraded to comply with current City and Americans with Disabilities Act (ADA) standards, to the satisfaction of the Public Works Director. 20. The building plan submittal shall include a complete utility plan showing all existing and proposed utilities, utility abandonments/relocations, site improvements, and work within the public right-of-way. 21. The utility plan shall show the abandonment of the existing fire service lateral, check assembly, and post indicator valve that serves the existing office building. The plan and Page 250 of 821 ARCH-0221-2021 & AFFH-0407-2022 736 Orcutt Road Page 9 supporting documents shall show how the existing fire sprinkler system will be serviced from a new or the existing fire service lateral to remain. Service sizing, fire department connection(s), check assembly, and all appurtenances shall be approved to the satisfaction of the Fire Department. 22. The building plan submittal shall show and note compliance with the parking and driveway standards. The architectural site plan and floor plans shall show all parking bay, space, and width dimensions, signing, striping, maneuverability, and clearance to obstructions. All spaces and areas for maneuverability shall be designed to allow vehicles to exit to Orcutt Road in a forward direction. 23. The plans shall include a complete grading and drainage plan. The plans and supporting documents shall show and note compliance with the Floodplain Management Regulations, Drainage Design Manual (DDM), and the Post Construction Stormwater Regulations (PCR’s). 24. The grading plan, building plan submittal, and demolition plan shall include an e rosion control, work delineation limits, and construction staging plan. The plan shall show and honor the adjoining creek corridor, top of bank, and setbacks to the satisfaction of the City. 25. The building plan submittal shall include a construction staging plan, pedestrian protection plan, and circulation plan to the satisfaction of the Transportation and Engineering divisions. Unless specifically approved for certain scope(s) of work, the public sidewalk along Orcutt shall remain open. 26. Stormwater Control Measures (SCM’s) related to the PCR compliance approach should be located on private property and not within the public right-of-way unless specifically approved by the City. If warranted and approved by the City Engineer, a separate encroachment agreement will be required to recognize any SCM’s that will be located within the right-of-way. The agreement shall be in a format provided by the City and shall be recorded prior to building permit issuance. 27. The building permit plan submittal and demolition permit plans shall show all existing trees, trees to be removed, and trees to remain. A tree protection/preservation plan shall be provided in conjunction with the development plans per City Engineering Standards and Specifications. A plan prepared by a Certified Arborist may be required. The plan shall be approved to the satisfaction of the City Arborist prior to permit issuance and the commencement of any demolition, utility trenching, or construction. The City supports the proposed tree removals with the compensatory tree plantings as shown. Transportation – Public Works 28. On-site landscaping, signage, fencing or other vertical elements shall be designed to maintain clear sight distance for drivers entering and exiting the project driveway from Orcutt Road to the satisfaction of the City Transportation Division. 29. Applicant shall use of alternative paving materials, such as pavers or stamped/colored concrete, at vehicular entry to site as a strategy to reduce traffic speeds entering/existing site driveway and to increase visibility of pedestrians crossing parking drive aisle, subject to the satisfaction of the Public Works and Community Development Directors. Page 251 of 821 ARCH-0221-2021 & AFFH-0407-2022 736 Orcutt Road Page 10 30. Short-term and long-term bicycle parking shall comply with the City’s Active Transportation Plan Design Guidelines for bike racks and indoor bicycle storage facilities, including provisions for accommodating cargo bikes and access to electrical charging for e-bikes within indoor bicycle storage rooms. 31. Improvement plans shall include installation of a “STOP” sign and “RIGHT TURN ONLY” sign facing vehicles exiting the project site. 32. Prior to issuance of building permits, applicant shall provide a summary of the following for review and approval by the City Transportation Division: a. Description of Traffic/Parking Demand Management strategies proposed for implementation with the project. b. Summary of plans/strategies for efficiently managing on-site tandem parking stalls. Utilities Department 33. The construction plans for sewer and water services shall be in accordance with the engineering design standards in effect at the time the building permit is approved. 34. Building permit submittal shall clarify size of existing and proposed water services and water meters for the project, including both potable and recycled water. Engineering and fire flow calculations shall be provided to determine and confirm meter size and fire flow requirements. Residential and commercial water services shall be metered separately. Individual submeters may be required for residential units, unless exempted by State Law for low-income residential units. 35. The project is within the Recycled Water Master Plan area and will be required to complete frontage improvements to the recycled water system prior to occupancy. These improvements include connecting to the existing recycled water main within Orcutt Road and extending the existing City main along the property’s frontage. The project will be required to connect to recycled water for irrigation purposes once it is available. 36. The project’s estimated total water use (ETWU) to support new ornamental landscaping shall not exceed the project’s maximum applied water allowance (MAWA). Information shall be submitted during the Building Permit review process for review and approval by the Utilities Department prior to issuance of a building permit to support required water demand of the project’s proposed landscaping. 37. Projects generating more than two cubic yards of total waste shall comply with AB 1826, and local waste management ordinance to reduce greenhouse gas emissions. Building plan submittal shall show a trash enclosure capable of storing the required bins for waste, recycling, and organics. Driveways and access routes to all trash and recycling receptacles shall be designed to accommodate the size and weight of garbage trucks, and shall be approved by the San Luis Garbage Company. The review letter from San Luis Garbage Company shall be pasted on the project plans submitted for a building permit. Page 252 of 821 ARCH-0221-2021 & AFFH-0407-2022 736 Orcutt Road Page 11 Fire Department 38. Plans submitted for a building permit shall include a National Fire Protection Association (NFPA) 13 fire sprinkler system for Group R-2 occupancies of Type V-B construction over two stories in height and for all mixed-use buildings. Indemnification 39. The applicant shall defend, indemnify, and hold harmless the City and/or its agents, officers, and employees from any claim, action, or proceeding against the City and/or its agents, officers, or employees to attack, set aside, void, or annul the approval by the City of this project, and all actions relating thereto, including, but not limited to, environmental review (“Indemnified Claims”). The City shall promptly notify the applicant of any Indemnified Claim upon being presented with the Indemnified Claim and the City shall fully cooperate in the defense against an Indemnified Claim. My action is final unless appealed within 10 calendar days of the date of this letter. Anyone may appeal the action by submitting a letter to the Community Development Department within the time specified. The appropriate appeal fee must accompany the appeal documentation. Appeals will be scheduled for the first available Planning Commission meeting date. If an appeal is filed, you will be notified by mail of the date and time of the hearing. The Community Development Director’s approval expires after three years if building permits are not issued for site development, the permit shall expire with the building permit application, unless otherwise extended by Council Resolution. On request, the Community Development Director may grant renewals for successive periods, in accordance with Municipal Code Section 17.104.070, or as otherwise determined to be consistent with State Law. If you have any questions, or if you need additional information, please contact Kyle Bell at (805) 781-7524. Sincerely, Tyler Corey Deputy Director Community Development cc: David Gibbs 3765 South Higuera, Unit 102 San Luis Obispo, CA 93401 Page 253 of 821 Page 254 of 821 RESOLUTION NO. PC-1044-21 A RESOLUTION OF THE CITY OF SAN LUIS OBISPO PLANNING COMMISSION APPROVING A MINOR USE PERMIT AND THE DEVELOPMENT OF A MIXED-USE PROJECT CONSISTING OF 94 AFFORDABLE RESIDENTIAL UNITS FOR LOW-INCOME HOUSEHOLDS AND 924 SQUARE FEET OF COMMERCIAL SPACE WITHIN THE MANUFACTURING (M) ZONE. THE PROJECT INCLUDES A DENSITY BONUS OF 24% INCLUDING A REQUEST FOR AN AFFORDABLE HOUSING CONCESSION AND WAIVER FROM THE EDGE CONDITIONS STANDARDS FOR THE ORIENTATION OF BALCONIES AND WINDOW PLACEMENT ON THE SECOND AND THIRD FLOORS OF THE BUILDING SIDES FACING ADJACENT PROPERTIES LOCATED IN THE MEDIUM-DENSITY (R-2) ZONEAND AN ADDENDUM TO THE PREVIOUSLY ADOPTED MITIGATED NEGATIVE DECLARATION (ER-0286-2014), AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED AUGUST 25, 2021 (279 BRIDGE STREET, ARCH-0587-2020, USE-0412-2021, & AFFH-0413-2021) WHEREAS, the Architectural Review Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, on June 1, 2015, adopted the Mitigated Negative Declaration for the project, and approved a pre-fabricated bridge across Meadow Creek and an associated creek setback exception; and continued the review of the three shell buildings and associated site improvements and tree removals to a date uncertain with directional items provided for the applicant and staff, pursuant to a proceeding instituted under ARCH-0286-2014 & ER-0286-2014, Devin Gallagher, applicant, and WHEREAS, the Architectural Review Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, on May 1, 2017, found the project consistent with the Community Design Guidelines and approved the project Resolution No. 1007-17, pursuant to a proceeding instituted under ARCH-0255-2019, Devin Gallagher, applicant; and WHEREAS, the Architectural Review Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, on September 9, 2019, reviewed changes to the previously approved project and recommended that the Planning Commission find the project consistent with the Community Design Guidelines, pursuant to a proceeding instituted under ARCH-0255-2019, Devin Gallagher, applicant; 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 September 25, 2019, approving the mixed-use project and an associated addendum to the Mitigated Negative Declaration, pursuant to a proceeding instituted under ARCH-0255-2019 and USE-0526- Page 255 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 2 2019, Devin Gallagher, applicant; and WHEREAS, the Architectural Review Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, on July 19, 2021, recommending the Planning Commission find the project consistent with the Community Design Guidelines with identified directional items, pursuant to a proceeding instituted under ARCH-0587-2020, AFFH-0413-2021, & EID-0494-2021, Scott Smith, HASLO, applicant; and WHEREAS, the Planning Commission of the City of San Luis Obispo meeting was conducted via teleconference on August 25, 2021, pursuant to a proceeding instituted under ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021, Scott Smith, HASLO, applicant; and WHEREAS, the Planning Commission of the City of San Luis Obispo has duly considered all evidence, including the testimony of the applicant, interested parties, and evaluation and recommendations by staff, presented at said hearing; and WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of San Luis Obispo as follows: SECTION 1. Findings. The Planning Commission hereby grants final approval to the project (ARCH-0587-2020, USE-0412-2021, & AFFH-0413-2021), based on the following findings: 1. The project is consistent with Land Use Element Policy 2.3.6 “Housing and Businesses” and 3.8.5 (Mixed Uses) because the project provides residential dwellings within a commercial district near neighborhood commercial centers, major activity nodes and transit opportunities. Housing at this location is and can be compatible with the proposed and existing commercial uses on-site and on adjacent properties. 2. The project is consistent with Housing Element Policies 6.1 and 7.4 because the project supports the development of more housing in accordance with the assigned Regional Housing Needs Allocation and establishes a new neighborhood development, with pedestrian and bicycle linkages that provide direct, convenient and safe access to adjacent neighborhoods consistent with the Community Design Guidelines. 3. The project is consistent with Conservation and Open Space Element Policy 4.4.3 because the project promotes higher-density, compact housing to achieve more efficient use of public facilities and services and to improve the jobs/housing balance. Page 256 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 3 4. As conditioned, the project is consistent with the Zoning Regulations for Mixed-Use Projects (Section 17.70.130), since the proposed building design complies with objective design criteria and performance standards for mixed-use development by providing internal compatibility between the different uses in terms of noise, hours of operation, vehicle and pedestrian circulation, access, and use of open space. Minor Use Permit Findings 5. As conditioned, the establishment, maintenance, or operation of the proposed project will not, in the circumstances of this particular case, be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity of the proposed use, or detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the City because the project has been designed to address noise, glare, and pedestrian traffic that is compatible and consistent with the mix of residential and commercial uses on site. 6. As conditioned, the proposed project is consistent with the General Plan Land Use Element for this location since the project proposes to construct a mixed-use development that includes commercial service uses and residential uses that are consistent with activities envisioned by the Services and Manufacturing Land Use designation. 7. As conditioned, the project complies with all applicable provisions of the Zoning Regulations as described within the property development standards for the Manufacturing M) zone and mixed-use development. The proposed uses are compatible with the project site and with existing and potential uses in the vicinity which include commercial services and residences. 8. As conditioned, the mixed-use project is compatible at this location because the project is surrounded on three sides by existing residential dwellings, and located away from the primary street frontage which serves primarily existing commercial uses. The proposed residential and commercial activities are compatible with existing and future land uses in the vicinity because the project has been designed to orient commercial uses toward the street and residential private open space areas are located internal to the site. 9. The site is physically suitable in terms of public utilities, traffic generation, and public emergency vehicle access, because the proposed project is within an existing developed neighborhood that provides adequate utilities, vehicle parking, and site circulation. The site is adequate for the project in terms of size, configuration, topography, and other applicable features, and has appropriate access to public streets with adequate capacity to accommodate the quantity and type of traffic expected to be generated by the use. Development Review Findings 10. As conditioned, the project is consistent with the Community Design Guidelines for commercial and multi-family housing design and infill development because the Page 257 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 4 architectural style is complementary to the surrounding neighborhood and is designed consistent with the prevailing setback pattern of the neighborhood. 11. As conditioned, the project design is consistent with the Community Design Guidelines by providing a variety of architectural treatments that add visual interest and articulation to the building design that are compatible with the design and scale of the existing structures in the surrounding neighborhood (CDG, Chapter 5.3). 12. As conditioned, the project respects the privacy of adjacent residences through appropriate building orientation and windows that minimize overlook and do not impair the privacy of the indoor or outdoor living space of neighboring structures. 13. The proposed height, mass and scale of the project will not negatively alter the overall character of the neighborhood or the street’s appearance because the development is designed in a manner that does not deprive reasonable solar access to adjacent properties. The project incorporates vertical and horizontal wall plan offsets, which provide a high- quality and aesthetically pleasing architectural design. Density Bonus and Alternative Incentives Findings 14. The proposed project qualifies for an 80% density bonus by providing 100% of the base density units as dedicated housing for low-income households. The project will provide quality affordable housing consistent with the intent of Chapter 17.140 of the Zoning Regulations, the requested 24% density bonus and reduction to site development standards are necessary to facilitate the production of affordable housing units associated with a mixed-use development project. The requested density bonus and reduction to site development standards are necessary to facilitate the production of affordable housing units. 15. The requests for a density bonus and reduction to site development standards are necessary to facilitate the production of affordable housing units, consistent with the intent of Housing Element programs 2.17, 6.10, and 6.19, and the alternative affordable housing incentives outlined in Section 17.140.070 of the Zoning Regulations. 16. The requested waiver to the site development standard which requires window placement to be offset by 12-inches from adjacent existing structures along the second and third floor, is appropriate because the windows are necessary for egress for occupancy of the dwelling units in compliance with the California Building Code which does not result in any identified specific adverse impact to the public health, safety, or physical environment consistent with State and Federal Law. Sign Regulations 17. The proposed monument sign is consistent with the intent and purpose of the Sign Regulations, the sign is of similar size as other properties in the vicinity with the same Page 258 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 5 zoning and provides for a superior design that does not result in visual clutter on the property. SECTION 2. Environmental Review. A Mitigated Negative Declaration was adopted by the Architectural Review Commission on June 1, 2015. The Planning Commission hereby adopts the Addendum to the adopted Mitigated Negative Declaration of Environmental Review, finding that: 1) the minor technical changes addressed in the Addendum do not materially change the findings and conclusions of the adopted Mitigated Negative Declaration; 2) no substantial changes are proposed or would occur that would require major revisions to the adopted Mitigated Negative Declaration; 3) no new significant environmental effects are identified and there would not be a substantial increase in the severity of previously identified significant effects; 4) the project would not result in any significant effects that would be substantially more severe than what was identified in the adopted Mitigated Negative Declaration; and 5) the applicant will comply with all adopted mitigation measures. Aesthetics Mitigation Measure AES 1: All freestanding light post shall be eliminated and replaced with bollard lighting depicted elsewhere on project plans. Monitoring Plan, AES 1: Final plans shall be reviewed Community Development Planning staff as part of the Building Permit application package, who shall require modifications as necessary for consistency with City standards and to ensure that light spillage into the creek corridor or across property lines will not occur, prior to department sign off and issuance of permits. Mitigation Measure AES 2: All freestanding bollard lighting shall be located outside required yard and creek setbacks. Monitoring Plan, AES 2: Final plans shall be reviewed Community Development Planning staff as part of the Building Permit application package, who shall ensure that all lighting is outside required yard and creek setbacks, prior to department sign off and issuance of permits. Air Quality Mitigation Measure AQ 1: Prior to any construction activities at the site, the project proponent shall ensure that a geologic evaluation is conducted to determine if the area disturbed is exempt from the Asbestos ATCM regulation. An exemption request must be filed with the APCD. If the site is not exempt from the requirements of the regulation, the applicant must comply with all requirements outlined in the Asbestos ATCM. This may include development of an Asbestos Dust Mitigation Plan and Asbestos Health and Safety Program for approval by the APCD. Page 259 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 6 Monitoring Plan, AQ 1: All mitigation measures shall be shown on grading and building plans. In addition, the contractor shall designate a person or persons to monitor compliance with APCD requirements. The name and telephone number of such persons shall be provided to the APCD, Community Development and Public Works Departments prior to commencement of construction. The applicant shall provide documentation of compliance with APCD requirements to City staff prior to issuance of any grading or building permits. Mitigation Measure AQ 2: Any scheduled disturbance, removal, or relocation of utility pipelines shall be coordinated with the APCD Enforcement Division at (805) 781-5912 to ensure compliance with NESHAP, which include, but are not limited to: 1) written notification, within at least 10 business days of activities commencing, to the APCD, 2) asbestos survey conducted by a Certified Asbestos Consultant, and, 3) applicable removal and disposal requirements of identified ACM. Monitoring Plan, AQ 2: All mitigation measures shall be shown on grading and building plans. In addition, the contractor shall designate a person or persons to monitor compliance with APCD requirements. Their duties shall include holiday and weekend periods when work may not be in progress. The name and telephone number of such persons shall be provided to the APCD, Community Development and Public Works Departments prior to commencement of construction. Mitigation Measure AQ 3: During construction/ground disturbing activities, the applicant shall implement the following particulate (dust) control measures. These measures shall be shown on grading and building plans. In addition, the contractor shall designate a person or persons to monitor the dust control program and modify practices, as necessary, to prevent transport of dust off site. Their duties shall include holiday and weekend periods when work may not be in progress. The name and telephone number of such persons shall be provided to the Community Development and Public Works Departments prior to commencement of construction. a) Reduce the amount of disturbed area where possible. b) Use water trucks or sprinkler systems in sufficient quantities to prevent airborne dust from leaving the site, and from exceeding the APCD’s limit of 20% opacity for no greater than 3 minutes in any 60 minute period. Increased watering frequency will be required whenever wind speeds exceed 15 m.p.h. and cessation of grading activities during periods of winds over 25 m.p.h. Reclaimed (non-potable) water is to be used in all construction and dust-control work. c) All dirt stock pile areas (if any) shall be sprayed daily and covered with tarps or other dust barriers as needed. d) Permanent dust control measures identified in the approved project revegetation and landscape plans should be implemented as soon as possible, following completion of any soil disturbing activities. Page 260 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 7 e) Exposed grounds that are planned to be reworked at dates greater than one month after initial grading shall be sown with a fast germinating, non-invasive, grass seed and watered until vegetation is established. f) All disturbed soil areas not subject to revegetation shall be stabilized using approved chemical soil binders, jute netting, or other methods approved in advance by the APCD. g) All roadways, driveways, sidewalks, etc. to be paved shall be completed as soon as possible. In addition, building pads shall be laid as soon as possible after grading unless seeding or soil binders are used. h) Vehicle speed for all construction vehicles shall not exceed 15 m.p.h. on any unpaved surface at the construction site. i) All trucks hauling dirt, sand, soil, or other loose materials, are to be covered or shall maintain at least two feet of freeboard (minimum vertical distance between top of load and top of trailer) in accordance with California Vehicle Code Section 23114. j) Install wheel washers where vehicles enter and exit unpaved roads onto streets, or wash off trucks and equipment leaving the site. k) Sweep streets at the end of each day if visible soil material is carried onto adjacent paved roads. Water sweepers shall be used with reclaimed water should be used where feasible. Roads shall be pre-wetted prior to sweeping when feasible. l) All PM10 mitigation measures required shall be shown on grading and building plans. m) The contractor or builder shall designate a person or persons to monitor the fugitive dust emissions and enhance the implementation of the measures as necessary to minimize dust complaints, reduce visible emissions below the APCD’s limit of 20% opacity for no greater than 3 minutes in any 60 minute period. Their duties shall include holidays and weekend periods when work may not be in progress. The name and telephone number of such persons shall be provided to the APCD Compliance Division prior to the start of any grading, earthwork or demolition. Monitoring Plan, AQ 3: All mitigation measures shall be shown on grading and building plans. In addition, the contractor shall designate a person or persons to monitor the dust control program and to order increased watering, as necessary, to prevent transport of dust off site. Their duties shall include holiday and weekend periods when work may not be in progress. The name and telephone number of such persons shall be provided to the APCD, Community Development and Public Works Departments prior to commencement of construction. Mitigation Measure AQ 4: Prior to any construction activities at the site, the project proponent shall ensure that all equipment and operations are compliant with California Air Resource Board and APCD permitting requirements, by contacting the APCD Engineering Division at (805) 781-5912 for specific information regarding permitting requirements. Monitoring Plan, AQ 4: All mitigation measures shall be shown on grading and building plans. In addition, the contractor shall designate a person or persons to monitor compliance with APCD requirements. The name and telephone number of such persons shall be Page 261 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 8 provided to the APCD, Community Development and Public Works Departments prior to commencement of construction. The applicant shall provide documentation of compliance with APCD requirements to City staff prior to issuance of any grading or building permits. Mitigation Measure AQ 5: To reduce sensitive receptor emissions impact of diesel vehicles and equipment used to construct the project and export soil from the site, the applicant shall implement the following idling control techniques: 1. California Diesel Idling Regulations a. On-road diesel vehicles shall comply with Section 2485 of Title 13 of the California Code of regulations. This regulation limits idling from diesel-fueled commercial motor vehicles with gross vehicular weight ratings of more than 10,000 pounds and licensed for operation on highways. It applies to California and non-California based vehicles. In general, the regulation specifies that drivers of said vehicles: i. Shall not idle the vehicle’s primary diesel engine for greater than 5 minutes at any location, except as noted in Subsection )d) of the regulation; and, ii. Shall not operate a diesel-fueled auxiliary power system (APS) to power a heater, air conditioner, or any ancillary equipment on that vehicle during sleeping or resting in a sleeper berth for greater than 5.0 minutes at any location when within 1,000 feet of restricted area, except as noted in Subsection (d) of the regulation. b. Off-road diesel equipment shall comply with the 5 minute idling restriction identified in Section 2449(d)(2) of the California Air Resources Board’s In-Use Off-Road Diesel regulation. c. Signs must be posted in the designated queuing areas and job sites to remind drivers and operators of the state’s 5 minute idling limit. 2. Diesel Idling Restrictions Near Sensitive Receptors (residential homes). In addition to the State required diesel idling requirements, the project applicant shall comply with these more restrictive requirements to minimize impacts to nearby sensitive receptors: a. Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors. b. Diesel idling within 1,000 feet of sensitive receptors shall not be permitted. c. Use of alternative fueled equipment is recommended. d. Signs that specify the no idling areas must be posed and enforces at the site. 3. Soil Transport. The final volume of soil that will be hauled off-site, together with the fleet mix, hauling route, and number of trips per day will need to be identified for the APCD. Specific standards and conditions will apply. Monitoring Plan, AQ 5: All mitigation measures shall be shown on grading and building plans. In addition, the contractor shall designate a person or persons to monitor the dust control program and to order increased watering, as necessary, to prevent transport of dust off site. Their duties shall include holiday and weekend periods when work may not be in progress. The name and telephone number of such persons shall be provided to the APCD, Page 262 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 9 Community Development and Public Works Departments prior to commencement of construction. The applicant shall provide documentation of compliance with APCD requirements to City staff prior to issuance of any grading or building permits. Mitigation Measure AQ 6: To confirm the health risks to residents of the development are below APCD thresholds, screening level health risk assessments shall be completed and provided to the APCD for review and approval prior to the issuance of business permits when required by the APCD. Monitoring Plan, AQ 6: Confirmation with compliance with APCD regulations shall be provided with business permit applications as applicable. All mitigation measures shall be shown on grading and building plans. In addition, the contractor shall designate a person or persons to monitor compliance with APCD requirements. The name and telephone number of such persons shall be provided to the APCD, Community Development and Public Works Departments prior to commencement of construction. The applicant shall provide documentation of compliance with APCD requirements to City staff prior to issuance of any grading or building permits. Biological Resources Mitigation Measure BIO 1: The final geotechnical engineering report shall be prepared to ensure that caisson foundations in lieu of over-excavated building pads with shallow foundations are utilized where adjacent to riparian setbacks. Monitoring Plan, BIO 1: All mitigation measures shall be shown on grading and building plans and be clearly visible to contractors and City inspectors. Final plans and supporting materials shall be reviewed by the City’s Community Development staff and Natural Resources Manager as part of the Building Permit application package, who shall confirm the conclusion and recommendations of the final geotechnical engineering report and use of caisson foundations, and provide site inspections as necessary to ensure implementation. Mitigation Measure BIO 2: To reduce potential impacts to nesting birds to a less than significant level, vegetation removal and initial site disturbance for any project elements shall be conducted between September 1st and January 31st outside of the nesting bird season. If vegetation removal is planned for the bird nesting season (February 1st to August 31st), then, preconstruction nesting bird surveys shall be required to determine if any active nests would be impacted by project construction. If no active nests are found, then no further mitigation shall be required. If any active nests are found that would be impacted by construction, then the nest sites shall be avoided with the establishment of a non-disturbance buffer zone around active nests as determined by a qualified biologist, and in accordance with CDFW standards and the Migratory Bird Treaty Act as may be applicable. Nest sites shall be avoided and protected with the non-disturbance buffer zone until the adults and young of the year are no longer reliant on the nest site for survival as determined by a qualified biologist. As such, avoiding disturbance Page 263 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 10 or take of an active nest would reduce potential impacts on nesting birds to a less-than- significant level. Monitoring Plan, BIO 2: All mitigation measures shall be shown on grading and building plans and be clearly visible to contractors and City inspectors. Final plans and supporting materials shall be reviewed by the City’s Planning staff and Natural Resources Manager as part of the Building Permit application package, who shall confirm the conclusion and recommendations of the preconstruction nesting bird surveys and provide site inspections as necessary to ensure implementation. Mitigation Measure BIO 3: Prior to ground disturbing activities, a qualified biologist shall conduct a pre-construction survey within 30 days of initial ground disturbance to identify whether any upland wildlife species are using any portion of the project areas where ground disturbance is proposed. If ground dwelling wildlife species are detected a biological monitor shall be present during initial ground disturbing and/or vegetation removal activities to attempt salvage and relocation efforts for the wildlife that may be present, such as common reptiles and small mammals. The salvage and relocation effort for non-listed wildlife species would further reduce the level of this less than significant impact. Monitoring Plan, BIO 3: All mitigation measures shall be shown on grading and building plans and be clearly visible to contractors and City inspectors. Final plans and supporting materials shall be reviewed by the City’s Planning staff and Natural Resources Manager as part of the Building Permit application package, who shall confirm the conclusion and recommendations of the preconstruction surveys and provide site inspections as necessary to ensure implementation. Mitigation Measure BIO 4: The applicant shall obtain Clean Water Act (CWA) regulatory compliance in the form of a permit from the Corps or written documentation from the Corps that no permit would be required for the proposed bridge crossing. Should a permit be required, the applicant shall implement all the terms and conditions of the permit to the satisfaction of the Corps. Corps permits and authorizations require applicants to demonstrate that the proposed project has been designed and will be implemented in a manner that avoids and minimizes impacts on aquatic resources. Compliance with Corps permitting would also include obtaining a CWA 401 Water Quality Certification from the Regional Water Quality Control Board. In addition, the Corps may require compensatory mitigation for unavoidable permanent impacts on riparian habitat to achieve the goal of a no net loss of wetland values and functions. As such, regulatory compliance would reduce potential impacts on waters of the U.S. to a less- than-significant level. Monitoring Plan, BIO 4: All mitigation measures shall be shown on grading and building plans and be clearly visible to contractors and City inspectors. Final plans and supporting materials, including documentation of compliance with any Corps permitting or compensatory mitigation requirements shall be reviewed by the City’s Planning staff and Natural Resources Manager as part of the Building Permit application package, who shall confirm the adequacy of CWA/Corps compliance. Page 264 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 11 Mitigation Measure BIO 5: The applicant shall obtain compliance with Section 1602 of the California Fish and Wildlife Code (Streambed Alteration Agreements) in the form of a completed Streambed Alteration Agreement or written documentation from the CDFW that no agreement would be required for the proposed bridge crossing. Should an agreement be required, the property owners shall implement all the terms and conditions of the agreement to the satisfaction of the CDFW. The CDFW Streambed Alteration Agreement process encourages applicants to demonstrate that the proposed project has been designed and will be implemented in a manner that avoids and minimizes impacts in the stream zone. In addition, CDFW may require compensatory mitigation for unavoidable impacts on riparian habitat in the form of riparian habitat restoration of disturbed areas to the extent feasible and additional compensatory riparian tree plantings. Using the City-required creek setback area along Meadow Creek for riparian tree replacement would be an appropriate onsite compensatory mitigation approach. As such, regulatory compliance would reduce potential impacts on waters of the state to a less-than significant level. Monitoring Plan, BIO 5: All mitigation measures shall be shown on grading and building plans and be clearly visible to contractors and City inspectors. Final plans and supporting materials, including documentation of compliance with any CDFW permitting or compensatory mitigation requirements shall be reviewed by the City’s Planning staff and Natural Resources Manager as part of the Building Permit application package, who shall confirm the adequacy of CDFW compliance. Geology & Soils Mitigation Measure GEO 1: A geotechnical engineering investigation shall be undertaken and a comprehensive design-level report prepared based on the final approved design of the project. Additional borings will be required to address specific areas of the site once building layout and structural foundation loads are determined, or can be reasonably estimated. The report shall address site preparation and grading, total and differential settlement under the structure loads, retaining wall design parameters, slabs-on-grade, expansive soils, site-specific seismicity (including seismic loads on retaining walls), and any other items deemed relevant to the geotechnical engineer. Monitoring Plan, GEO 1: All mitigation measures shall be shown on grading and building plans. Community Development Planning and Public Works staff shall review the geotechnical analysis as part of the Building Permit application package prior to issuance of grading or construction permits. Noise Mitigation Measure NOI 1: Loading facilities shall be sited to orient away from residential development on adjacent properties, to increase the separation from noise-sensitive uses and to allow the buildings to attenuate any generated noise. The Architectural Review Commission Page 265 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 12 will review final building design and layout to ensure that any loading docks are strategically located so as to attenuate noise generated on the site. Monitoring Plan, NOI 1: The Architectural Review Commission will review the site plan to ensure loading docks are located to attenuate generated noise effect on adjacent residential land. SECTION 3. Action. The project conditions of approval do not include mandatory code requirements. Code compliance will be verified during the plan check process, which may include additional requirements applicable to the project. The Planning Commission hereby grants final approval to the project with incorporation of the following conditions: Planning Division 1. Final project design and construction drawings submitted for a building permit shall be in substantial compliance with the project plans approved by the Planning Commission (ARCH- 0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021). A separate, full-size sheet shall be included in working drawings submitted for a building permit that lists all conditions and code requirements of project approval listed as sheet number 2. Reference shall be made in the margin of listed items as to where in plans requirements are addressed. Any change to approved design, colors, materials, landscaping, or other conditions of approval must be approved by the Director or Architectural Review Commission, as deemed appropriate. 2. The project phasing schedule includes three phases: (1) Site improvements, commercial structure, and residential structure I (32 residential units), (2) Senior housing structure II (32 units), (3) the remaining site improvements and residential structure III (30 units). This phased approach anticipates 20 months of construction per phase. If the required building permits are not issued for the site development within three years of this discretionary action, the approval shall expire. Requests for renewals may be granted in conformance with 17.104.070. 3. Plans submitted for a building permit shall call out the colors and materials of all proposed building surfaces and other improvements. Colors and materials shall be consistent with the color and material board submitted with the Development Review application; however, plans shall demonstrate compliance with the Architectural Review Commission’s direction to incorporate an additional accent color on the building elevations, subject to the satisfaction of the Community Development Director. 4. Plans submitted for a building permit shall include recessed window details or equivalent shadow variation, and all other details including but not limited to awnings, and railings. Plans shall indicate the type of materials for the window frames and mullions, their dimensions, and colors. Plans shall include the materials and dimensions of all lintels, sills, surrounds recesses and other related window features. Plans shall demonstrate the use of high-quality materials Page 266 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 13 for all design features that reflect the architectural style of the project and are compatible with the neighborhood character, to the approval of the Community Development Director. 5. Plans submitted for a building permit shall include a revised railing system for the balconies that provides a solid design that visually obscures views of storage on the balconies and provides additional privacy between existing and new residential units, subject to the satisfaction of the Community Development Director. 6. Plans submitted for a building permit shall demonstrate compliance with the Architectural Review Commission’s direction to reduce the height of the screening features surrounding the interior playground courtyard to provide a balance of vehicle screening and pedestrian safety, subject to the satisfaction of the Community Development Director. 7. The property owner shall be responsible for maintaining and updating the current parking calculation for the commercial component of the project upon the submittal of Planning and Building permits for tenant changes or improvements, and/or each business license, to ensure the site does not become under-parked. 8. All surface parking spaces must be available for common use and not exclusively assigned to any individual use, required residential parking may be reserved, but commercial parking must be made available for guests or overflow from residences. 9. Plans submitted for a building permit shall clearly depict the location of all required short and long-term bicycle parking for all intended uses, plans submitted for construction permits shall include bicycle lockers or interior space within each residential unit or other area for the storage of at least one bicycle per residential unit. Plans shall also include at least one first floor, secured and lockable bike storage area that can accommodate oversized cargo and electric bikes with access to electricity. Short-term bicycle racks such as “Peak Racks” shall be installed in close proximity to, and visible from, the main entry into the buildings (inverted “U” rack designs shall not be permitted). Sufficient detail shall be provided about the placement and design of bike racks and lockers to demonstrate compliance with relevant Engineering Standards and Community Design Guidelines, to the satisfaction of the Public Works and Community Development Directors. 10. Plans submitted for building permit shall include a photometric plan, demonstrating compliance with maximum light intensity standards not to exceed a maintained value of 10 foot-candles. The locations of all lighting, including bollard style landscaping or path lighting, shall be included in plans submitted for a building permit. All wall-mounted lighting fixtures shall be clearly called out on building elevations included as part of working drawings. All wall-mounted lighting shall complement building architecture. The lighting schedule for the building shall include a graphic representation of the proposed lighting fixtures and cut-sheets on the submitted building plans. The selected fixture(s) shall be shielded to ensure that light is directed downward consistent with the requirements of the City’s Night Sky Preservation standards contained in Chapter §17.70.100 of the Zoning Regulations. Page 267 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 14 11. Plans submitted for a building permit shall include low level foot lighting along the pedestrian accessway across the bridge, compliant with §17.70.100. Preference shall be towards motion sensor lighting fixtures in close proximity to the finished grade intended for enhancing pedestrian safety and security, subject to the satisfaction of the Community Development Director. 12. Mechanical and electrical equipment shall be located internally to the building. With submittal of working drawings, the applicant shall include sectional views of the building, which clearly show the sizes of any proposed condensers and other mechanical equipment. If any condensers or other mechanical equipment is to be placed on the roof, plans submitted for a building permit shall confirm that parapets and other roof features will adequately screen them. A line-of-sight diagram may be required to confirm that proposed screening will be adequate. This condition applies to initial construction and later improvements. 13. The storage area for trash and recycling cans shall be screened from the public right-of-way consistent with §17.70.200 of the Zoning Regulations. The subject property shall be maintained in a clean and orderly manner at all times, free of excessive leaves, branches, and other landscape material. The applicant shall be responsible for the clean-up of any landscape material in the public right-of-way. 14. The applicant shall submit a landscaping plan containing an irrigation system plan with submittal of working drawings for a building permit. The legend for the landscaping plan shall include the sizes and species of all groundcovers, shrubs, and trees with corresponding symbols for each plant material showing their specific locations on plans. The surfaces and finishes of hardscapes shall be included on the landscaping plan. The landscape plans shall provide trees planted along the southern and eastern perimeter of the project site to be of a height and breadth at maturity to provide substantial screening between the existing and new structures, minimum size 36-inch box, subject to the satisfaction of the Community Development Director. 15. Plans submitted for construction permits shall include elevation and detail drawings of all walls and fences. Fences, walls, and hedges will comply with the development standards described in the Zoning Regulations (§17.70.070 –Fences, Walls, and Hedges). 16. The location of any required backflow preventer and double-check assembly shall be shown on all site plans submitted for a building permit, including the landscaping plan. Construction plans shall also include a scaled diagram of the equipment proposed. Where possible, as determined by the Utilities Director, equipment shall be located inside the building within 20 feet of the front property line. Where this is not possible, as determined by the Utilities Director, the back-flow preventer and double-check assembly shall be located in the street yard and screened using a combination of paint color, landscaping and, if deemed appropriate by the Community Development Director, a low wall. The size and configuration of such equipment shall be subject to review and approval by the Utilities and Community Development Directors. Page 268 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 15 17. The design of proposed structures shall incorporate noise attenuating construction techniques that reduces noise exposure to acceptable levels. Exposure in outdoor activity areas must not exceed 60 dB and indoor exposure must not exceed 45 dB consistent with the City’s Noise Ordinance. Plans submitted for construction permits must clearly indicate and describe noise attenuation measures, techniques, and materials, and demonstrates their compliance with noise levels limits. 18. Prior to building occupancy, the owner of the property shall provide a Residential Noise Notice in writing for residential occupants stating that the property is located within a commercial zone in an urban-type environment and that noise levels may be higher than a strictly residential area. 19. Any new proposed signage in addition to the monument sign shall be reviewed by the Planning Division to ensure appropriateness for the site and compliance with the Sign Regulations. Signage shall coordinate with building architecture and the type of land use. The Director may refer additional signage to the ARC if it seems excessive or out of character with the project. Housing Programs – Community Development Department 20. Prior to issuance of building permits, the City and the applicant shall enter into an Affordable Housing Agreement, to be recorded in the office of the county recorder. The agreement shall specify mechanisms or procedures to assure the continued affordability and availability of the low-income households, to the satisfaction of the Community Development Director. Engineering Division – Public Works/Community Development 21. Projects involving the construction of new structures requires that complete frontage improvements be installed or that existing improvements be upgraded per city standard. Municipal Code (MC) 12.16.050. 22. The building plan submittal shall correctly reflect the right- of-way width, location of frontage improvements, front property line location, and all easements. All existing frontage improvements including street trees shall be shown for reference. 23. Any sections of damaged or displaced curb, gutter, sidewalk, and driveway approach shall be repaired or replaced to the satisfaction of the Public Works Department. 24. Development of the driveway and parking areas shall comply with the Parking and Driveway Standards for dimension, maneuverability, slopes, drainage, and materials. Alternative paving materials are recommended for water quality and/or control purposes and in the area of existing or proposed trees and where the driveway or parking area may occur within the dripline of any tree. Alternative paving material shall be approved to the satisfaction of the Planning Department. 25. The applicant/developer shall consider the use of a shared accessible path of travel from the Page 269 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 16 public right- of-way with the adjoining property located at 285 Bridge Street. The existing sidewalk serving 285 Bridge appears to be established to a point near the bridge crossing. A shared path could limit the amount of existing landscape and/or trees to be removed and could potentially preserve the existing parking layout and limit the area of site disturbance. A separate access easement or amendment of the existing easement agreement may be required. 26. The building plan submittal shall include a complete site utility plan. All existing and proposed utilities along with utility company meters shall be shown. Existing underground and overhead services shall be shown along with any proposed alterations or upgrades. All new wire services shall be underground. All work in the public right- of-way shall be shown and noted. 27. Provisions for trash, recycle, and green waste containment, screening, and collection shall be approved to the satisfaction of the City and San Luis Obispo Garbage Company. The respective refuse storage area and on-site conveyance shall consider convenience, aesthetics, safety, and functionality. The trash enclosure shall be designed in accordance with the City Design Guidelines and City Engineering Standard 1010.13 for water quality treatment. 28. The building plan submittal shall include a complete grading and drainage plan. The plan shall consider historic offsite drainage tributary to this property that may need to be accepted and conveyed along with the improved on -site drainage. This development may alter and/or increase the storm water runoff from this site or adjoining sites. The improved or altered drainage shall be directed to the street and not across adjoining property lines unless the drainage is conveyed within recorded easements or existing waterways. 29. The building plan submittals shall include a complete drainage report. The report shall show compliance with the Waterway Management Plan Volume III, Drainage Design Manual. 30. This property is located within a designated flood zone as shown on the Flood Insurance Rate Map (FIRM) for the City of San Luis Obispo. As such, all new structures and appurtenant utilities shall comply with all Federal Emergency Management Agency (FEMA) requirements and the City' s Floodplain Management Regulations per MC Chapter 17.84. 31. This property is located in an AO (2' depth) Flood Zone; the water surface or base flood elevation (BFE) of a 100-year storm is 2' above adjacent grade. The structure and any exterior building service equipment including the sewer lift station must be raised, floodproofed, or proved to be inherently flood resistant to an elevation that is at least one foot above the BFE or 3' above the highest adjacent grade. Additional freeboard to 2' above the BFE may result in additional structure protection and savings on flood insurance and is strongly encouraged. 32. The property owner and/or future tenants shall manage any outdoor storage so that materials and accessory structures do not have a significant impact on the floodzone in accordance with the Drainage Design Manual and the Floodplain Management Regulations. 33. The project shall comply with Post Construction Stormwater Requirements as promulgated by the Regional Water Quality Control Board. The building plan submittal shall include a Page 270 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 17 complete Post Construction Stormwater Checklist as available on the City' s website. 34. A Private Stormwater Conveyance System Management and Maintenance Agreement Operations and Maintenance Agreement) shall be provided in a format provided by the city. The agreement shall be recorded and shall reference any separate maintenance program documents and the approved building plans. An Operations and Maintenance Manual shall be provided in conjunction with the building plan submittal for all post construction Stormwater Control Measures (SCM’s). 35. EPA Requirement: General Construction Activity Storm Water Permits are required for all storm water discharges associated with a construction activity where clearing, grading or excavations result in land disturbance of one or more acres. Permits are required until the construction is complete. To be covered by a General Construction Activity Permit, the owner(s) of land where construction activity occurs must submit a completed "Notice of Intent" (NOI) form, with the appropriate fee, to the State Regional Water Quality Control Board. An application is required to the State Board under their recently adopted Stormwater Multi-Application, Reporting, and Tracking System (SMARTS). 36. The building plan submittal shall include a copy of the Storm Water Pollution Prevention Plan SWPPP) for reference. Incorporate any erosion control measures into the building plans as required by the Board, identified in the SWPPP, and in accordance with Section 10 of the city's Waterways Management Plan. The building plan submittal shall include reference to the Waste Discharger Identification (WDID) number on the grading and erosion control plans for reference. 37. Work adjacent to or within a channel or creek may require the approvals of California Department of Fish and Wildlife (CDFW), The Army Corp of Engineer's, and/or the Regional Water Quality Control Board. A copy of any required permits or a written permit waiver or exemption for the same shall be provided to the City prior to demolition, grading, and/ or building permit issuance. 38. The building plan submittal, grading plans, and drainage report shall incorporate any project specific permitting requirements from any higher governmental authority. The applicant/developer shall comply with the County Air Pollution Control District (APCD) standards and permit requirements related to Naturally Occurring Asbestos. APCD approval shall be secured prior to any ground disturbing activities. 39. The building plan submittal shall show all existing trees on the property with a trunk diameter of 3" or greater. Offsite trees along the adjoining property lines with canopies and/or root systems that extend onto the property shall be shown for reference. The plan shall note which trees are to remain and which trees are proposed for removal. Include the diameter and species of all trees. Tree canopies should generally be shown to scale for reference. 40. The existing willow and walnut trees located on the property shall be retained unless otherwise approved for removal by the City Arborist and the Community Development Director. A tree removal proposal will require a report from a certified arborist with a summary of why the Page 271 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 18 tree(s) can't be saved. If approved for removal, compensatory tree(s) shall be incorporated into the building plan submittal. 41. Tree protection measures shall be implemented to the satisfaction of the City Arborist. The City Arborist shall review and approve the proposed tree protection measures prior to commencing with any demolition, grading, or construction. The City Arborist shall approve any safety pruning, the cutting of substantial roots, or grading within the dripline of trees. A city approved arborist shall complete safety pruning. Any required tree protection measures shall be shown or noted on the building plans. Contact the City Arborist at 781- 7023 to review and establish any required preservation measures to be included with the building permit submittal. 42. The proposed 6' privacy fencing located along the southerly property line shall be located at the top of bank or at a reasonable setback from the top of bank to the satisfaction of the Planning Division, Public Works Department, and Natural Resources Manager. The fence shall be extended to the easterly property line and then northerly to connect with the proposed privacy fence located along the easterly property line. If required by the City or other agencies with permit jurisdiction over the swale and brambles, a section(s) of the fence may need to be constructed with open fencing to support the migration of riparian wildlife. Utilities Department 43. Building permit submittal shall address the comments below on the project’s landscaping plans: a. L1.1 - WUCOLS PF >0.7 are considered high water-use plants and cannot be mixed with low or moderate water-use plants. b. L1.3 - Unable to verify this calculation because the hydrozones are not labeled on the landscape design. Suggest including a hydrozone map. c. L1.1 - shows high water use plants. As mentioned on that sheet, high water use plants cannot be in the same hydrozone as moderate or low water use plants. please alter plant selection or expand hydrozones and provide hydrozone map. 44. Separate, adequately sized water meters shall be provided for commercial, residential, and landscape uses. Owner shall provide sub-meters to each dwelling unit. Indemnification 45. The applicant shall defend, indemnify and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this project, and all actions relating thereto, including but not limited to environmental review Indemnified Claims”). The City shall promptly notify the applicant of any Indemnified Claim upon being presented with the Indemnified Claim and the City shall fully cooperate in the defense against an Indemnified Claim. Page 272 of 821 ResolutionNo. PC-1044-21 279 Bridge Street, ARCH-0587-2020, USE-0412-2021, AFFH-0413-2021, & EID-0494-2021 Page 19 On motion by Commissioner Kahn, seconded by Commissioner Dandekar, and on the following roll call vote: AYES: Commissioners Dandekar, Kahn, Shoresman, Wulkan and Chair Jorgensen NOES: None REFRAIN: Commissioner Hopkins ABSENT: Vice-Chair Quincy The foregoing resolution was passed and adopted this 25th day of August, 2021. Tyler Corey, Secretary Planning Commission Page 273 of 821 Page 274 of 821