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HomeMy WebLinkAboutItem 4b. Zoning Regulation Text Amendment (CODE-0224-2024) PLANNING COMMISSION AGENDA REPORT SUBJECT: REVIEW OF A TEXT AMENDMENT TO THE ZONING REGULATIONS TO ADD SINGLE-FAMILY AND MULTI-FAMILY USES AS CONDITIONALLY ALLOWED WITH APPROVAL OF A MINOR USE PERMIT IN THE NEIGHBORHOOD COMMERCIAL (C-N) ZONE. THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW. PROJECT ADDRESS: Citywide BY: Hannah Hanh, Associate Planner Phone Number: (805) 781-7432 FILE NUMBER: CODE-0224-2024 Email: hhanh@slocity.org FROM: Tyler Corey, Deputy Director RECOMMENDATION Recommend the City Council introduce and adopt an Ordinance revising Table 2 -1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) to add single -family and multi-family uses as conditionally allowed with approval of a Minor Use Permit in the Neighborhood Commercial (C-N) Zone. The project is exempt from environmental review under Section 15301(b)(3) (General Rule Exemption) of the California Environmental Quality Act (CEQA) Guidelines. SUMMARY On behalf of the City of San Luis Obispo (City), the Community Development Director (Director) has initiated a text amendment to Title 17 (Zoning Regulations) of the Municipal Code. To provide additional flexibility in the development potential and use of parcels in the C-N zone, the proposed text amendment includes a revision to Table 2-1 (Uses Allowed by Zone) to add “single-unit dwellings, detached” and “multi-unit residential” as conditionally allowed uses with approval of a Minor Use Permit in the C-N zone (Attachment A – Draft Planning Commission Resolution, Attachment B – Draft City Council Ordinance). There are no other revisions proposed as part of the application. 1.0 PLANNING COMMISSION’S PURVIEW Per Chapter 17.124 (Amendments – Zoning Regulations and Zoning Map), the Planning Commission’s role is to review the proposed text amendment for consistency with the City’s General Plan and State Law and provide a recommendation to the City Council. 2.0 PROJECT INFORMATION 2.1 Background Since at least 1981, single-family and multi-family uses were conditionally allowed uses with approval of a Minor Use Permit (i.e., Administrative Use Permit) in the C-N zone Meeting Date: 6/12/2024 Item Number: 4b Time Estimate: 45 minutes Page 35 of 61 Item 4b CODE-0224-2024 Planning Commission Report – June 12, 2024 (Ordinance No. 887 [1981 Series]). These uses were removed from the list of allowable uses for the C-N zone as part of the comprehensive update to Title 17 (Zoning Regulations) in 2018 (Ordinance No. 1650 [2018 Series]). It is not clear to staff if this change was intentional or an oversight as there was no specific discussion in the staff reports, presentations, or minutes from the public hearings regarding this amendment. As such, the current Zoning Regulations does not include “single-unit dwellings, detached” and “multi-unit residential” uses as allowable uses in the C-N zone (Figure 1 – Table 2- 1). Figure 1 – Table 2-1 (Uses Allowed by Zone) of the current Zoning Regulations 2.2 Public Interest / Proposed Text Amendment In response to public interest received to allow single-family and multi-family uses in the C-N zone, the Director has initiated a text amendment in accordance with Section 17.124.020(B) (Authority to Initiate an Amendment to the Zoning Regulations). The proposed amendment includes a minor revision to Table 2 -1 (Uses Allowed by Zone) to add “single-unit dwellings, detached” and “multi-unit residential” uses as conditionally allowed uses with approval of a Minor Use Permit (Figure 2 – Proposed Text Amendment). This amendment would be consistent with use regulations for the C-N zone prior to the comprehensive update in 2018. No other revisions are proposed as part of this application. Figure 2 – Proposed Text Amendment to Table 2-1 (Uses Allowed by Zone) Page 36 of 61 Item 4b CODE-0224-2024 Planning Commission Report – June 12, 2024 3.0 PROJECT ANALYSIS 3.1 Consistency with the General Plan The Neighborhood Commercial (NC) land use designation is intended for the provision of goods and services that meet the frequent shopping needs of people living nearby as described in the Land Use Element (LUE) (Table 1 – General Plan Land Use Designations and Development Standards in the LUCE Planning Sub-area). Listed examples of intended uses include small-scale grocery stores, laundromats, drugstore, small-scale specialty stores, residential uses as part of mixed-use projects, and public and quasi- public uses. It is noted that the examples provided do not reflect an exhaustive list of allowable uses as the intents of land use designations inform allowable uses in corresponding zones of the Zoning Regulations. Since the NC land use designation is intended for small-scale commercial uses that serve the daily needs of nearby residents, the proposed text amendment would not conflict with the intent of the land use designation and instead provide additional opportunities where residential uses can be allowed. To facilitate its intent, the NC land use designation is located in proximity or adjacent to residential land use designations (e.g., Low, Medium, Medium-High, and High Density Residential) as shown in the Land Use Map. As such, the amendment to add single- and multi-family uses to the list of allowable uses in the C- N zone would result in residential uses that are in proximity to other compatible residential and neighborhood serving commercial uses. 3.2 Consistency with the Zoning Regulations Per Chapter 17.26 (Neighborhood Commercial [C-N] Zone), the C-N zone is intended to accommodate the establishment and operation of small-scale, pedestrian-oriented, and low-impact retail sales and personal services for the convenience and frequent needs of people living in the surrounding residential areas. As shown in the Zoning Map, there is a limited number of parcels in the C-N zone throughout the City. These properties are developed with existing residential, personal service, restaurant, general retail, commercial recreation, etc. uses. They are primarily concentrated near and along the Broad Street corridor between Church Street and Alphonso Street wit h few exceptions (or outliners) at the following locations:  Broad Street and Lincoln Avenue intersection  California Boulevard between Hathway Avenue and Highway 101  Laurel Lane between Augusta Street and Southwood Drive There are also C-N zoned parcels located within the San Luis Ranch Specific Plan and Avila Ranch Development Plan areas. However, these properties are differently regulated by the applicable Specific Plan or Development Plan approval. After the comprehensive update to the Zoning Regulations in 2018, existing residences not part of mixed-use developments in the C-N zone became nonconforming uses. These Page 37 of 61 Item 4b CODE-0224-2024 Planning Commission Report – June 12, 2024 nonconforming residential uses are located primarily near and along Broad Street between Church Street and Alphonso Street, and have specific circumstances in which they may be continued and/or expanded as detailed in Chapter 17.94 (Nonconforming Uses). Since the list of allowable uses in the C-N zone includes a limited range of small- scale and low-impact commercial uses (e.g., food services, personal services, etc.) that are dependent on the surrounding residential areas, the amendment to add single-family and multi-family uses would provide additional flexibility in the development potential and use of these parcels. Additional development and use potential of this zone would be pertinent to consider because the procurement of daily goods and services have evolved with technology in recent decades to allow direct-to-door deliveries, etc. While residential uses can be achieved as part of a mixed-use development (allowed use in the C-N zone), most of the parcels in the C-N zone are fairly small in size, which could make it more difficult to satisfy development standards for a feasible mixed-use development. The amendment would also change existing nonconforming residential uses back to be conforming uses. As proposed, the amendment would result in single -family and multi- family uses that are in proximity to other compatible residential and neighbor serving commercial uses. 3.3 Consistency with the Major City Goals Housing & Homelessness was prioritized as a Major City Goal in the 2023-2025 Financial Plan to support the expansion of housing options and facilitate housing production. As proposed, the text amendment would advance this Major City Goal by providing additional opportunities where housing may be located within the City. 4.0 ENVIRONMENTAL REVIEW The text amendment is exempt under Section 15061(b)(3) of the CEQA Guidelines. This “Common Sense” exemption states that CEQA only applies to projects that have the potential for causing significant effect on the environment. Since the text amendment is a minor revision to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) that would conditionally allow residential uses with a Minor Use Permit in the C -N zone, the scope of this action is limited to a text amendment where subsequent single-family and multi-family residential development would be subject to discretionary review. Since these uses are subject to discretionary review, environmental review would be evaluated on a project-specific basis. It is also noted that there are existing single-family residences in some of the C-N zoned parcels. Therefore, there would not be additional environmental impacts for these parcels. 5.0 OTHER DEPARTMENT / DIVISION REVIEW If the proposed amendment is adopted, any subsequent single-family and multi-family residential development would be subject to discretionary review. Relevant departments and divisions would have the opportunity to review the proposed residential development as part of the Minor Use Permit application process. Page 38 of 61 Item 4b CODE-0224-2024 Planning Commission Report – June 12, 2024 6.0 ALTERNATIVES 1. Continue project. An action to continue the item should include a detailed list of additional information or analysis required to make a decision. 2. Deny the project. An action denying the project should include findings that cite the basis for denial and should reference inconsistency with the General Plan, Zoning Regulations, or other policy documents. 7.0 ATTACHMENTS A. Draft Planning Commission Resolution (CODE-0224-2024) B. Draft City Council Ordinance (CODE-0224-2024) Page 39 of 61 Page 40 of 61 RESOLUTION NO. PC-XXXX-24 A RESOLUTION OF THE CITY OF SAN LUIS OBISPO PLANNING COMMISSION RECOMMENDING THE CITY COUNCIL INTRODUCE AND ADOPT AN ORDINANCE AMENDING TABLE 2-1 (USES ALLOWED BY ZONE) IN TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE TO ADD SINGLE-FAMILY AND MULTI-FAMILY USES AS CONDITIONALLY ALLOWED WITH APPROVAL OF A MINOR USE PERMIT IN THE NEIGHBORHOOD COMMERCIAL (C-N) ZONE. THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW (CEQA) AS REPRESENTED IN THE PLANNING COMMISSION AGENDA REPORT AND ATTACHMENTS DATED JUNE 12, 2024 (CITYWIDE; CODE-0224-2024) 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 June 12, 2024, for the purpose of recommending an amendment to Table 2-1 (Uses Allowed by Zone) of Title 17 (Zoning Regulations), pursuant to a proceeding under CODE-0224-2024; City of San Luis Obispo, applicant; and WHEREAS, notices of said public hearing were made at the time and in the manner required by the law; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of interested parties and the evaluation and recommendations provided by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all evidence, the Planning Commission makes the following findings: 1. The proposed amendment to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code to add single-family and multi-family residential uses as conditionally allowed uses with approval of a Minor Use Permit is consistent with the intent of the Neighborhood Commercial (NC) land use designation and purpose of the Neighborhood Commercial (C-N) zone. 2. The proposed amendment to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code to add single-family and multi-family residential uses as conditionally allowed uses with approval of a Minor Use Permit would not alter the character of the City or cause health safety or welfare concerns because the amendment is consistent with the General Plan. In addition, the amendment would directly implement City goals and policies, particularly the Major City Goal for Housing & Homelessness, to support the expansion of housing options and facilitate housing production. Page 41 of 61 Planning Commission Resolution No. PC-XXXX-2024 CODE-0224-2024 (Citywide) Page 2 3. Parcels located in the C-N zone include historical residential uses that are currently nonconforming. The proposed amendment would allow these residential uses to become conforming and facilitate additional opportunities for these uses to continue and expand. SECTION 2. Environmental Determination. The proposed amendment to Table 2-1 (Uses Allowed by Zone) of Title 17 (Zoning Regulations) has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the CEQA Guidelines, and environmental regulations of the City. The amendment is exempt under Section 15061(b)(3) of the CEQA Guidelines. This “Common Sense” exemption states that CEQA only applies to projects that have the potential for causing significant effect on the environment. Since the text amendment is a minor revision that would conditionally allow residential uses with a Minor Use Permit in the C-N zone, the scope of this action is limited to a text amendment where subsequent single-family and multi-family residential development would be subject to discretionary review. Since these uses are subject to discretionary review, environmental review would be evaluated on a project-specific basis. It is also noted that there are existing single- family residences in some of the C-N zoned parcels. Therefore, there would not be additional environmental impacts for these parcels. SECTION 3. Action. The Planning Commission hereby recommends to the City Council the introduction and adoption of an ordinance to amend Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the San Luis Obispo Municipal Code and add single-family and multi-family uses as conditionally allowed uses in the C-N zone as set forth in Exhibit A and incorporated herein. Upon motion of ______________________, seconded by __________________ and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this 12th day of June 2024. __________________________ Tyler Corey, Secretary Planning Commission Page 42 of 61 Planning Commission Resolution No. PC-XXXX-2024 CODE-0224-2024 (Citywide) Page 3 EXHIBIT A Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP AGRICULTURE Agricultural Accessory Structure A A Animal Husbandry and Grazing A A Community Garden A MUP A A A A A Crop Production A A A MUP MUP Greenhouse/Plant Nursery, Commercial CUP CUP INDUSTRY, MANUFACTURING & PROCESSING, WHOLESALING Fuel Dealer (propane, etc) MUP A See also Sec. 17.74.060 Laboratory - Medical, Analytical, Research, Testing CUP A A A A See also Sec. 17.74.060 Manufacturing - Heavy CUP CUP See also Sec. 17.74.060 Manufacturing - Light A A A See also Sec. 17.74.060 Recycling Recycling - Collection Facility MUP MUP MUP A Recycling - Processing Facility MUP Research and Development A MUP A See also Sec. 17.74.060 Salvage and Wrecking MUP Warehousing, Storage, and Distribution Outdoor Storage MUP MUP Personal Storage A A Warehousing and Indoor Storage A A MUP Page 43 of 61 Planning Commission Resolution No. PC-XXXX-2024 CODE-0224-2024 (Citywide) Page 4 Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP Wholesaling and Distribution A A MUP LODGING Bed and Breakfast Establishment MUP CUP CUP A A A See Sec. 17.86.070 Homeless Shelter A A A A A A A A A A A A See Sec. 17.86.150 and GC Sec. 65583(a)(4) Hostel CUP CUP A A A Hotels and Motels A A A CUP CUP RV Parks CUP PUBLIC AND QUASI-PUBLIC USES Cultural Institutions CUP A A A CUP Hospitals and Clinics Clinic MUP MUP A MUP MUP MUP See Sec. 17.36.030.C and Sec. 17.42.030.A Hospital CUP CUP Park and Recreation Facilities A A A A A A A A A A A A A A Parks and Recreation Commission review required. Public Assembly Facilities CUP A MUP MUP M/A MUP CUP Religious Assembly Facilities CUP MUP MUP MUP MUP A MUP MUP A M/A MUP MUP MUP See 42 U.S.C. §§ 2000cc, et seq. Schools - Colleges CUP Schools - Primary and Secondary CUP CUP MUP MUP CUP CUP CUP MUP CUP See Sec. 17.86.240 Schools - Trade Schools CUP MUP CUP MUP MUP In the C-D zone, Trade Schools are not allowed on the ground floor. Sports and Entertainment Assembly Facility CUP CUP Page 44 of 61 Planning Commission Resolution No. PC-XXXX-2024 CODE-0224-2024 (Citywide) Page 5 Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP RESIDENTIAL USES General Residential Housing Types Single-Unit Dwellings, Detached A CUP A A A A A MUP Multi-Unit Residential A A A A MUP Boarding House CUP CUP MUP MUP Caretaker Quarters A A A A A A A A A A A A A A A MUP Continuing Care Community MUP MUP MUP MUP MUP MUP MUP Elderly and Long Term Care MUP MUP MUP M/A M/A MUP Family Day Care (Small and Large) A A A A A A A A A A A A A See Sec. 17.86.100 and H&SC 1597.40 Fraternities and Sororities CUP CUP Section 17.86.130 Hospice In-Patient Facility CUP CUP MUP CUP CUP MUP Mobile Home Park A A A A See GC Sec. 65852.7, 65863.7, 65863.8 Residential Care Facilities - 6 or Fewer Residents A A A A A A M/A M/A M/A MUP Multiple state statutes Residential Care Facilities - 7 or More Residents MUP MUP MUP MUP MUP MUP MUP Multiple state statutes Supportive and/or Transitional Housing, with On or Off-Site Services A A A A MUP A A A A A A A A See GC Sec. 65583(a)(5) Farmworker Housing A A MIXED USES Mixed-use Development A A A A A A A A See Sec. 17.70.130 Page 45 of 61 Planning Commission Resolution No. PC-XXXX-2024 CODE-0224-2024 (Citywide) Page 6 Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP COMMERCIAL USES Adult Entertainment Businesses A A See Sec. 17.86.030 and GC Section 65850.4 Animal Care, Sales and Services Animal Boarding/Kennels CUP MUP MUP Outdoor runs and kennel areas shall be allowed only in the C-S zone. See also Sec. 17.86.170. Animal Grooming A A A A A MUP Animal Retail Sales MUP A A A A Veterinary Services, Large Animal CUP MUP MUP Veterinary Services, Small Animal A A A A M/A A Banks and Financial Institutions ATMs A A A A A A A A A Banks and Credit Unions A A A A MUP MUP MUP See Sec. 17.36.030.B and Sec. 17.40.030.A Check Cashing Shops/Payday Loans MUP MUP Business Services A A A M/A A A A Cemetery CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP Commercial Recreation - Large Scale CUP CUP CUP CUP CUP CUP CUP MUP See Sec. 17.36.030.D and Sec. 17.86.110 Commercial Recreation - Small Scale MUP MUP A A A A A A MUP Day Care Center MUP MUP MUP MUP MUP A A A A M/A MUP MUP MUP MUP See Sec. 17.86.100 Page 46 of 61 Planning Commission Resolution No. PC-XXXX-2024 CODE-0224-2024 (Citywide) Page 7 Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP Eating and Drinking Establishments Bars and Taverns MUP MUP MUP MUP MUP MUP See also Sec. 17.86.040 and Sec. 17.86.050 Restaurant A A A A A A MUP MUP Restaurant with Late Hour Alcohol Service MUP MUP MUP MUP MUP MUP MUP MUP See Sec. 17.86.040 and Sec. 17.86.050 Food and Beverage Sales General Market A A A A CUP See Sec. 17.26.030.B.1 Convenience Store MUP MUP MUP A A A A A MUP MUP MUP See Sec. 17.26.030.B.1 and Sec. 17.86.090 Produce Stand MUP MUP A A A A Liquor Store MUP MUP MUP MUP CUP See Sec. 17.26.030.B.2 and Sec. 17.86.040 Food Preparation A A A Funeral Parlors and Internment Services MUP MUP A MUP Instructional Services MUP CUP MUP M/A A M/A CUP A MUP Maintenance and Repair Services A A CUP Offices Business and Professional Offices MUP A A A M/A M/A MUP MUP In the C-S zone, a MUP is required for office uses on the ground floor. See also Sec. 17.36.030.B and Sec. 17.40.030.A. Medical and Dental Offices A A A M/A MUP MUP See Sec. 1736.030.C Personal Services A A A A MUP A MUP Page 47 of 61 Planning Commission Resolution No. PC-XXXX-2024 CODE-0224-2024 (Citywide) Page 8 Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP Retail Sales See Sec. 17.26.030.A, 17.30.030.A, 17.32.030, and 17.34.034.A and 17.36.030.A Building Materials and Services - Indoor A A A A A Building Materials and Services - Outdoor MUP A MUP A A Extended Hour Retail MUP MUP MUP MUP MUP MUP MUP MUP General Retail MUP A A A MUP MUP Large-Scale Retail CUP CUP CUP Nurseries and Garden Centers CUP A A Theaters CUP MUP MUP MUP MUP Only nonprofit theaters are allowed in the PF zone. See also Sec. 17.86.030. Vehicle Sales and Services Auto and Vehicle Sales and Rental MUP CUP A MUP Large Vehicle, Construction and Heavy Equipment Sales, Service, and Rental MUP A Service Stations MUP MUP MUP MUP A See Sec. 17.86.250, and Sec. 17.86.060. Vehicle Services - Major Repair/Body Work A A MUP Vehicle Services - Minor Repair/Maintenance CUP MUP A A MUP Vehicle Services - Washing MUP MUP CUP MUP MUP Page 48 of 61 Planning Commission Resolution No. PC-XXXX-2024 CODE-0224-2024 (Citywide) Page 9 Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP TRANSPORTATION, COMMUNICATIONS, & UTILITIES Airport CUP CUP CUP MUP Wireless Telecommunications Facilities MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP See Sec. 17.86.290, 47 USC Sec. 332(c)(7) of the Telecommunications Act, Pub. Util. Code Sec. 7901 et seq., GC Sec. 65850.6 Freight/Truck Terminals A A MUP Light Fleet-Based Services A MUP MUP Media Production Backlots and Soundstages MUP MUP MUP Broadcast Studios A A M/A A A A Heliport CUP CUP CUP CUP Parking Facilities CUP CUP CUP CUP CUP CUP See Sec. 17.86.200 Public Safety Facilities CUP CUP Transit Station or Terminal CUP CUP CUP MUP A Utilities Facilities Ground-mounted equipment in residential zones shall be screened by landscaping to the satisfaction of the Director. Facilities with Onsite Staff CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP Facilities with No Onsite Staff (unmanned) MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP Transmission Lines CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP Page 49 of 61 Planning Commission Resolution No. PC-XXXX-2024 CODE-0224-2024 (Citywide) Page 10 Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP CANNABIS ACTIVITY Cannabis See Section 17.86.080 Specialty Cultivator MUP MUP MUP Small Cultivator MUP MUP MUP Nursery MUP MUP MUP Manufacturing MUP MUP MUP Distributor MUP MUP MUP Microbusiness CUP MUP/ CUP MUP/ CUP MUP/ CUP See Sec. 17.86.080(E)(12) for specific requirements per zone. Testing CUP A A A Director’s action required. See also Sec. 17.86.080(E)(9). Retailer (Delivery) MUP MUP MUP Retailer (Storefront) CUP CUP SPECIFIC AND TEMPORARY LAND USES Educational Conferences Housing MUP MUP MUP MUP Homestay Rentals See Sec. 17.86.160 Home Occupation See Sec. 17.86.140 Food Trucks See Sec. 17.86.120 Nightclubs and Live Entertainment MUP MUP MUP MUP MUP MUP Office - Temporary See Chapter 17.113 Outdoor Temporary and/or Seasonal Sales See Sec. 17.86.190 and Chapter 17.113 Parking Facility - Temporary CUP MUP MUP MUP MUP MUP MUP MUP MUP MUP See Chapter 17.113 Safe Parking CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP See Sec. 17.86.230 Special Event MUP MUP MUP MUP MUP MUP MUP MUP MUP See Chapter 17.113 Vending Machine See Section 17.86.280 Page 50 of 61 DRAFT O _____ ORDINANCE NO. _____ (2024 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN AMENDMENT TO TABLE 2-1 (USES ALLOWED BY ZONE) IN TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE WITH AN EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) 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 June 12, 2024, for the purpose of recommending an amendment to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code, pursuant to a proceeding under CODE-0224-2024; City of San Luis Obispo, applicant; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on ________, 2024, for the purpose of introducing an ordinance to amend Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code, pursuant to a proceeding under CODE-0224-2024; City of San Luis Obispo, applicant; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the City Council has duly considered all evidence, including the testimony of interested parties and the evaluation and recommendation by staff, presented at said hearing. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings: 1. The proposed amendment to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code to add single-family and multi-family residential uses as conditionally allowed uses with approval of a Minor Use Permit is consistent with the intent of the Neighborhood Commercial (NC) land use designation and purpose of the Neighborhood Commercial (C-N) zone. 2. The proposed amendment to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code to add single-family and multi-family residential uses as conditionally allowed uses with approval of a Minor Use Permit would not alter the character of the City or cause health safety or welfare concerns because the amendment is consistent with the General Plan. In addition, the amendment would directly implement City goals and policies, particularly the Major City Goal for Housing & Homelessness, to support the expansion of housing options and facilitate housing production. Page 51 of 61 Ordinance No. ______ (2024 Series) Page 2 O ______ 3. Parcels located in the C-N zone include historical residential uses that are currently nonconforming. The proposed amendment would allow these residential uses to become conforming and facilitate additional opportunities for these uses to continue and expand. SECTION 2. Environmental Determination. The proposed amendment to Table 2-1 (Uses Allowed by Zone) of Title 17 (Zoning Regulations) has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the CEQA Guidelines, and environmental regulations of the City. The amendment is exempt under Section 15061(b)(3) of the CEQA Guidelines. This “Common Sense” exemption states that CEQA only applies to projects that have the potential for causing significant effect on the environment. Since the text amendment is a minor revision that would conditionally allow residential uses with a Minor Use Permit in the C-N zone, the scope of this action is limited to a text amendment where subsequent single-family and multi-family residential development would be subject to discretionary review. Since these uses are subject to discretionary review, environmental review would be evaluated on a project-specific basis. It is also noted that there are existing single- family residences in some of the C-N zoned parcels. Therefore, there would not be additional environmental impacts for these parcels. SECTION 3. Action. The City Council hereby adopts an ordinance to amend Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the San Luis Obispo Municipal Code and add single-family and multi-family uses as conditionally allowed uses in the C-N zone as set forth and incorporated herein. Page 52 of 61 Ordinance No. ______ (2024 Series) Page 3 O _____ Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP AGRICULTURE Agricultural Accessory Structure A A Animal Husbandry and Grazing A A Community Garden A MUP A A A A A Crop Production A A A MUP MUP Greenhouse/Plant Nursery, Commercial CUP CUP INDUSTRY, MANUFACTURING & PROCESSING, WHOLESALING Fuel Dealer (propane, etc) MUP A See also Sec. 17.74.060 Laboratory - Medical, Analytical, Research, Testing CUP A A A A See also Sec. 17.74.060 Manufacturing - Heavy CUP CUP See also Sec. 17.74.060 Manufacturing - Light A A A See also Sec. 17.74.060 Recycling Recycling - Collection Facility MUP MUP MUP A Recycling - Processing Facility MUP Research and Development A MUP A See also Sec. 17.74.060 Salvage and Wrecking MUP Warehousing, Storage, and Distribution Outdoor Storage MUP MUP Personal Storage A A Warehousing and Indoor Storage A A MUP Page 53 of 61 Ordinance No. ______ (2024 Series) Page 4 O ______ Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP Wholesaling and Distribution A A MUP LODGING Bed and Breakfast Establishment MUP CUP CUP A A A See Sec. 17.86.070 Homeless Shelter A A A A A A A A A A A A See Sec. 17.86.150 and GC Sec. 65583(a)(4) Hostel CUP CUP A A A Hotels and Motels A A A CUP CUP RV Parks CUP PUBLIC AND QUASI-PUBLIC USES Cultural Institutions CUP A A A CUP Hospitals and Clinics Clinic MUP MUP A MUP MUP MUP See Sec. 17.36.030.C and Sec. 17.42.030.A Hospital CUP CUP Park and Recreation Facilities A A A A A A A A A A A A A A Parks and Recreation Commission review required. Public Assembly Facilities CUP A MUP MUP M/A MUP CUP Religious Assembly Facilities CUP MUP MUP MUP MUP A MUP MUP A M/A MUP MUP MUP See 42 U.S.C. §§ 2000cc, et seq. Schools - Colleges CUP Schools - Primary and Secondary CUP CUP MUP MUP CUP CUP CUP MUP CUP See Sec. 17.86.240 Schools - Trade Schools CUP MUP CUP MUP MUP In the C-D zone, Trade Schools are not allowed on the ground floor. Sports and Entertainment Assembly Facility CUP CUP Page 54 of 61 Ordinance No. ______ (2024 Series) Page 5 O ______ Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP RESIDENTIAL USES General Residential Housing Types Single-Unit Dwellings, Detached A CUP A A A A A MUP Multi-Unit Residential A A A A MUP Boarding House CUP CUP MUP MUP Caretaker Quarters A A A A A A A A A A A A A A A MUP Continuing Care Community MUP MUP MUP MUP MUP MUP MUP Elderly and Long Term Care MUP MUP MUP M/A M/A MUP Family Day Care (Small and Large) A A A A A A A A A A A A A See Sec. 17.86.100 and H&SC 1597.40 Fraternities and Sororities CUP CUP Section 17.86.130 Hospice In-Patient Facility CUP CUP MUP CUP CUP MUP Mobile Home Park A A A A See GC Sec. 65852.7, 65863.7, 65863.8 Residential Care Facilities - 6 or Fewer Residents A A A A A A M/A M/A M/A MUP Multiple state statutes Residential Care Facilities - 7 or More Residents MUP MUP MUP MUP MUP MUP MUP Multiple state statutes Supportive and/or Transitional Housing, with On or Off-Site Services A A A A MUP A A A A A A A A See GC Sec. 65583(a)(5) Farmworker Housing A A MIXED USES Mixed-use Development A A A A A A A A See Sec. 17.70.130 Page 55 of 61 Ordinance No. ______ (2024 Series) Page 6 O ______ Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP COMMERCIAL USES Adult Entertainment Businesses A A See Sec. 17.86.030 and GC Section 65850.4 Animal Care, Sales and Services Animal Boarding/Kennels CUP MUP MUP Outdoor runs and kennel areas shall be allowed only in the C-S zone. See also Sec. 17.86.170. Animal Grooming A A A A A MUP Animal Retail Sales MUP A A A A Veterinary Services, Large Animal CUP MUP MUP Veterinary Services, Small Animal A A A A M/A A Banks and Financial Institutions ATMs A A A A A A A A A Banks and Credit Unions A A A A MUP MUP MUP See Sec. 17.36.030.B and Sec. 17.40.030.A Check Cashing Shops/Payday Loans MUP MUP Business Services A A A M/A A A A Cemetery CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP Commercial Recreation - Large Scale CUP CUP CUP CUP CUP CUP CUP MUP See Sec. 17.36.030.D and Sec. 17.86.110 Commercial Recreation - Small Scale MUP MUP A A A A A A MUP Day Care Center MUP MUP MUP MUP MUP A A A A M/A MUP MUP MUP MUP See Sec. 17.86.100 Page 56 of 61 Ordinance No. ______ (2024 Series) Page 7 O ______ Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP Eating and Drinking Establishments Bars and Taverns MUP MUP MUP MUP MUP MUP See also Sec. 17.86.040 and Sec. 17.86.050 Restaurant A A A A A A MUP MUP Restaurant with Late Hour Alcohol Service MUP MUP MUP MUP MUP MUP MUP MUP See Sec. 17.86.040 and Sec. 17.86.050 Food and Beverage Sales General Market A A A A CUP See Sec. 17.26.030.B.1 Convenience Store MUP MUP MUP A A A A A MUP MUP MUP See Sec. 17.26.030.B.1 and Sec. 17.86.090 Produce Stand MUP MUP A A A A Liquor Store MUP MUP MUP MUP CUP See Sec. 17.26.030.B.2 and Sec. 17.86.040 Food Preparation A A A Funeral Parlors and Internment Services MUP MUP A MUP Instructional Services MUP CUP MUP M/A A M/A CUP A MUP Maintenance and Repair Services A A CUP Offices Business and Professional Offices MUP A A A M/A M/A MUP MUP In the C-S zone, a MUP is required for office uses on the ground floor. See also Sec. 17.36.030.B and Sec. 17.40.030.A. Medical and Dental Offices A A A M/A MUP MUP See Sec. 1736.030.C Personal Services A A A A MUP A MUP Page 57 of 61 Ordinance No. ______ (2024 Series) Page 8 O ______ Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP Retail Sales See Sec. 17.26.030.A, 17.30.030.A, 17.32.030, and 17.34.034.A and 17.36.030.A Building Materials and Services - Indoor A A A A A Building Materials and Services - Outdoor MUP A MUP A A Extended Hour Retail MUP MUP MUP MUP MUP MUP MUP MUP General Retail MUP A A A MUP MUP Large-Scale Retail CUP CUP CUP Nurseries and Garden Centers CUP A A Theaters CUP MUP MUP MUP MUP Only nonprofit theaters are allowed in the PF zone. See also Sec. 17.86.030. Vehicle Sales and Services Auto and Vehicle Sales and Rental MUP CUP A MUP Large Vehicle, Construction and Heavy Equipment Sales, Service, and Rental MUP A Service Stations MUP MUP MUP MUP A See Sec. 17.86.250, and Sec. 17.86.060. Vehicle Services - Major Repair/Body Work A A MUP Vehicle Services - Minor Repair/Maintenance CUP MUP A A MUP Vehicle Services - Washing MUP MUP CUP MUP MUP Page 58 of 61 Ordinance No. ______ (2024 Series) Page 9 O ______ Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP TRANSPORTATION, COMMUNICATIONS, & UTILITIES Airport CUP CUP CUP MUP Wireless Telecommunications Facilities MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP See Sec. 17.86.290, 47 USC Sec. 332(c)(7) of the Telecommunications Act, Pub. Util. Code Sec. 7901 et seq., GC Sec. 65850.6 Freight/Truck Terminals A A MUP Light Fleet-Based Services A MUP MUP Media Production Backlots and Soundstages MUP MUP MUP Broadcast Studios A A M/A A A A Heliport CUP CUP CUP CUP Parking Facilities CUP CUP CUP CUP CUP CUP See Sec. 17.86.200 Public Safety Facilities CUP CUP Transit Station or Terminal CUP CUP CUP MUP A Utilities Facilities Ground-mounted equipment in residential zones shall be screened by landscaping to the satisfaction of the Director. Facilities with Onsite Staff CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP Facilities with No Onsite Staff (unmanned) MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP MUP Transmission Lines CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP Page 59 of 61 Ordinance No. ______ (2024 Series) Page 10 O ______ Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP CANNABIS ACTIVITY Cannabis See Section 17.86.080 Specialty Cultivator MUP MUP MUP Small Cultivator MUP MUP MUP Nursery MUP MUP MUP Manufacturing MUP MUP MUP Distributor MUP MUP MUP Microbusiness CUP MUP/ CUP MUP/ CUP MUP/ CUP See Sec. 17.86.080(E)(12) for specific requirements per zone. Testing CUP A A A Director’s action required. See also Sec. 17.86.080(E)(9). Retailer (Delivery) MUP MUP MUP Retailer (Storefront) CUP CUP SPECIFIC AND TEMPORARY LAND USES Educational Conferences Housing MUP MUP MUP MUP Homestay Rentals See Sec. 17.86.160 Home Occupation See Sec. 17.86.140 Food Trucks See Sec. 17.86.120 Nightclubs and Live Entertainment MUP MUP MUP MUP MUP MUP Office - Temporary See Chapter 17.113 Outdoor Temporary and/or Seasonal Sales See Sec. 17.86.190 and Chapter 17.113 Parking Facility - Temporary CUP MUP MUP MUP MUP MUP MUP MUP MUP MUP See Chapter 17.113 Safe Parking CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP CUP See Sec. 17.86.230 Special Event MUP MUP MUP MUP MUP MUP MUP MUP MUP See Chapter 17.113 Vending Machine See Section 17.86.280 Page 60 of 61 Ordinance No. ______ (2024 Series) Page 12 O _____ SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in the New Times, a newspaper published and circulated in this City. The Ordinance shall be effective thirty (30) days after its final passage. INTRODUCED on the ___ day of _________, 2024, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ___ day of ________, 2024, on the following vote: AYES: NOES: ABSENT: __________________________ Mayor Erica A. Stewart ATTEST: _________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: __________________________ J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. __________________________ Teresa Purrington, City Clerk Page 61 of 61 C-N Zone Text Amendment CODE-0224-2024 (Citywide) Planning Commission Hearing June 12, 2024 Applicant: City of San Luis Obispo Zoning Regulations – Existing and Proposed 2 Proposed Text Amendment Reintroduce residential uses as conditionally allowed uses in the C-N zone Residential uses previously allowed with Minor Use Permit approval since at least 1981 until the comprehensive Zoning Regulations update in 2018 Unclear if removal from list of allowable uses for the C-N zone was intentional or an oversight Public interest received to add residential uses and provide flexibility in development potential and use of C-N zoned parcels Would affect a limited number of parcels in the City 3 Zoning Map – Parcels in the C-N Zone 4 Primarily located along the Broad Street corridor between Church Street and Alphonso Street Developed properties with existing residential (nonconforming), personal service, restaurant, general retail, commercial recreation, etc. uses Zoning Map – Parcels in the C-N Zone 5 Broad Street and Lincoln intersection Developed properties with existing restaurant and mixed-use Zoning Map – Parcels in the C-N Zone 6 California Boulevard between Hathway Avenue and Highway 101 Developed properties with existing restaurant, personal service, general retail, convenience store, etc. uses Zoning Map – Parcels in the C-N Zone 7 Laurel Lane between Augusta Street and Southwood Drive Developed properties with existing restaurant, commercial recreation, personal service, general retail, etc. uses Policy Analysis Neighborhood Commercial (NC) Land Use Designation Purpose to accommodate the provision of goods and services that meet the frequent shopping needs of people living nearby Neighborhood Commercial (C-N) Zone Intended to accommodate the establishment and operation of small-scale, pedestrian-oriented, and low-impact retail sales and personal services for the convenience and frequent needs of the surrounding residential areas Located adjacent to, and in proximity to, residential zones Current list of allowable uses includes limited range of complementary small-scale and low-impact commercial uses that are dependent on nearby residences Proposed Text Amendment Provide additional flexibility in development potential and use Reintroduce residential uses as conditionally allowed in the C-N zone Compatible with other residential and neighborhood serving commercial uses 8 Environmental Determination Exempt under CEQA Guidelines Section 15061(b)(3) (General Rule Exemption) Limited to text amendment where subsequent residential development requires discretionary review Environmental review evaluated on a project-specific basis 9 Recommendation 10 Adopt the Draft Resolution (Attachment A) recommending the City Council introduce and adopt an Ordinance amending Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code to add single- family and multi-family uses as conditionally allowed with approval of a Minor Use Permit in the C-N zone.