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HomeMy WebLinkAbout10/17/1989, 3 - GP/R 1451, A REQUEST TO AMEND THE LAND USE ELEMENT MAP AND REZONE A 0.7 ACRE PORTION OF 5.2 ACRE SITE FROM C-N, NEIGHBORHOOD COMMERCIAL, TO O-S, OFFICE WITH SPECIAL CONSIDERATIONS, AT THE NORTHWEST CORNER OF PRADO ROAD AND SOUTH HIGUERA ST MEEnNG DATE: �I►IN�I�III�I�������In ll�ll� CTCy Of San LUIS OBISPO 10-17-89 COUNCIL AGENDA REPORT ITEM NUMBER: FROM Randy Rossi, In¢erim Community Development Director; By: David Moran, Associate Planner n.i�- SUBJECT:GP/R 1451, a request to amend the land use element map and rezone a 0.7 acre portion of 5.2 acre site from C-N, neighborhood commercial, to O-S, office with special considerations, at the northwest corner of Prado Road and South Higuera Street (Padre Plaza/Walter Center). CAO RECOMMENDATION Adopt resolution (No. 1) denying General Plan Amendment GP/R 1451, a request to amend the Land Use Element map from neighborhood commercial to office at 3238 S. Hi uera Street. INTRODUCTION The applicant wants to amend the land use element map and rezone a portion of this site to allow the expansion of government-related office uses. The site is a single 5.2 acre lot of record with office and neighborhood commercial zoning and is occupied by a 3,800 square foot former restaurant building, a relatively new office building and a new office building under construction. The 0.7 acre portion to be rezoned includes the restaurant building and a portion of the parking lot (refer to diagram, attached). The Planning Commission considered this request at their meeting of September 13, 1989. A motion to recommend that the council approve the general plan amendment and rezoning failed on a 3-3 vote (one member absent). On a subsequent motion, the commission voted 4-2 to recommend the council deny the request. The principal concern of the commission ~ was the inconsistency with the general plan land use element (see section 1 under Evaluation) and the impact that a reduction of C-N zoned land would have on the convenience shopping needs of the surrounding residential neighborhoods. SIGNIFICANT IMPACTS The initial environmental study did not identify any significant adverse impacts which would result from the request. The request is not consistent with land use element policies which say that the city should support the concept of neighborhood centers that are 2 to 5 acres in size (depending on neighborhood size). The request could have a beneficial impact on parking because office uses have a lower parking requirement than the past use of the site (a restaurant). FISCAL IMPACTS None were identified. CONSEQUENCES OF NOT TAKING THE RECOMMENDED ACTION The C-N zoned center would continue to meet the minimum size requirement preferred by the land use element, although a small portion of this area would be used for parking rather than as a building site. Government offices could not occupy the existing 3,800 square foot building. 3�1 ���n� ►Iuhlllllll��►���III city of san -Luis OBlspo COUNCIL AGENDA REPORT GP/R 1451 Page 2 Site Description The site is flat and is currently occupied by a 3800 square foot commercial building. The site adjoins an office complex which contains numerous government offices. The 5.2 acre lot has two land use designations, divided about equally between office on the westerly portion and neighborhood commercial along S. Higuera Street. Evaluation 1. Planning Commission Action -- The applicant represents that this site would be better utilized as an expansion area for the government office center which occupies the remaining portion of the site, in accordance with the city's tri-polar government facilities policies (see section 3 under Evaluation). While this small addition would help reduce the demand for government office space somewhat, staff had recommended the planning commission deny the request primarily because it would also reduce the size of the C-N zoned commercial center (Padre Plaza) below the minimum size recommended by the land use element. Staff feels that before we commit to utilizing any more of this site for other uses (ie, government offices), we should resolve the long term question of where the neighborhood services are going to be provided in this part of town, in light of the expected increase in demand for such services (Margarita Riviera, employees of recently approved service commercial projects, employees of new office buildings, etc.). The Planning Commission was divided over this issue, with some commissioners feeling the reduction of C-N land at this center was not significant and others feeling that an answer to the convenience shopping needs should be found before any more existing C-N zoned land is taken away. For these reasons, an initial motion to approve the request failed 3-3. A subsequent motion to recommend denial of the request, principally to move the project along to the city council, passed on a 4-2 vote. 2. Factors Which Support Retention of The Existing Land Use Designation -- Neighborhood commercial centers are intended to meet the convenience shopping needs of people living (and to a lessor extent, working) in a particular neighborhood, thereby encouraging nonvehicular shopping trips and shorter vehicle trips. The question to be answered regarding this requested change in land use designation is, in light of the substantial service commercial and residential development expected in the area surrounding the site, will the remaining 1.8 acres of C-N zoned land be large enough to serve the expanding demand for neighborhood services? In staff's opinion, the answer is no because: The land use element favors neighborhood commercial centers which are between two and five acres in size. In this case, the portion of the site which will remain C-N will be approximately 1.8 acres, of which about 0.5 acres will be devoted to parking for the adjacent office building under construction for a net area of 1.3 acres. i 3� �����►�►iuuillllll�I {{UIII MY Of San tuts OBISPO Nii% COUNCIL AGENDA REPORT GP/R 1451 Page 3 -- The Padre Plaza Shopping Complex is the only neighborhood commercial facility serving the South Higuera area of the city, and no other C-N property is located nearby. (refer to reduction of zoning map, attached) Other C-N or C-R developments are at least a mile away from Padre Plaza. Various plans currently being considered by the city call for infill and expansion of residential and service commercial areas near Padre Plaza. Staff would estimate that the Margarita residential expansion area and Garcia Ranch property in the Airport Area Specific Plan area could accommodate nearly 2000 additional residents over a 10 - 20 year time frame. Excluding the expansion areas, this C-N zoned site now serves a residential neighborhood of approximately 350 people, in addition to hundreds more employed by surrounding C-S zone uses. No provisions are being made in these expansion plans for additional C-N centers because of land use element policies which say that the increased demand for neighborhood services should be met by making more efficient use of existing neighborhood centers (such as Padre Plaza), and that convenience centers should have direct service access from the city's arterial or collector streets to avoid the use of residential streets. In the case of the Margarita Riviera expansion area, the specific plan could include a neighborhood center on Prado Road. However, there is already a convenience center on Prado Road at S. Higuera Street, which is the subject property. The expansion plans do envision circulation improvements, including easterly and westerly extensions of Prado Road, which would improve access to existing shopping centers on Broad Street and Madonna Road. -- The county plans to build an office complex within about five years at the southeast corner of Prado Road and South Higuera Street which will be large enough to house all of its social services functions. When the social services offices relocate to the new building, 30,000 square feet of office space will become available in the existing Walter Brothers office center. In addition, the applicant recently received approval for an additional 17,000 square feet of office space now under construction. Although it is difficult to forecast growth in demand for office space by other government agencies, we should wait and see how quickly the existing and previously approved space is absorbed before committing more neighborhood commercial lands to other uses. This is especially true when the expanded offices could increase the demand for neighborhood services, such as restaurants. When the expansion areas are included, there will be a significant unmet demand for neighborhood serving facilities. Rezoning another portion of this site will displace this demand and result in pressure for rezoning of other vacant properties in the neighborhood. The long term result could be the construction of a number of small centers in the area competing with each other, the inappropriate dispersal of restaurants and other uses to the C-S zone, or inadequate levels of neighborhood services. 3 -3 ���n���►►�IIIIIII�I � U city of San LUIS OBISpo Sid; COUNCIL AGENDA REPORT GP/R 1451 Page 4 3. Factors Which Support The Proposed Change In Land Use -- The land use element states that the expansion of office facilities outside the downtown can be considered at sites with an established group of offices. Policies relating to the location of public facilities favor the "tri-polar" concept, with government administrative offices located downtown, public health care related facilities (county hospital, etc.) located on Johnson Avenue, and social services located on South Higuera Street near Prado Road. The expansion of office zoning at the Walter Brothers center would be consistent with this policy. Since the policy limits the location of government offices to this general area, an argument could be made that the city should accommodate the demand for government office space by allowing the rezoning. If there is a need for neighborhood services, other sites within the area could be rezoned. The vacant parcel immediately across the street on the easterly side of South Higuera Street at Margarita Avenue would be an example, although access and traffic generation impacts of a neighborhood center on this site could be problems. The site is zoned C-S, service commercial. The remaining land in the area is primarily service commercial and medium density residential which has been built out. The applicant's statement (attached) indicates the 0.7 acre portion of the site which contains the restaurant and parking for the new office building should be rezoned to accommodate, among others, the state Workman's Compensation insurance local offices. The statement further justifies the rezoning by saying it will help meet the demand for government office space, it will have a beneficial impact on parking, and that the use of the building as a restaurant has never been successful. 4. Change In Parking Demand -- Overall parking requirements for the site would be reduced somewhat under office zoning. Presently, 70 spaces are required for the Padre Plaza and 57 are provided on-site. The remainder are provided in the office parking lot under a shared parking and driveway agreement. However, if the restaurant were converted to office use, the parking requirement would be further reduced by 25 spaces. Since there is a parking surplus for the entire site (508 total spaces provided for Padre Plaza and the adjacent office complex, and 423 required) staff feels the parking provided is adequate for either the existing or proposed land use. 5. Proposed "S" Designation -- The proposed special considerations zoning requested by the applicant would be to insure, through the planning commission hearing process, that only government related offices occupy the rezoned site. ALTERNATIVES 1. The council may adopt draft resolution No. 1 to deny the general plan amendment and rezoning as recommended by the Planning Commission. 2. The council may continue review of this item to a later date to allow the applicant an opportunity to revise his plans. Staff asks the council to give specific direction to the applicant. 3. The council may approve the general plan amendment and rezoning request by adopting ► draft ordinance No. I and draft resolution No. 2 (applicant's request). 3 -� 1I11malloiligTIN J`� city of san tuis osispo COUNCIL AGENDA REPORT GP/R 1451 Page 5 4. The council may also direct staff to explore the possibility of including C-N zoned property in the Margarita expansion area, or to explore rezoning a surrounding property. You may also want to recommend rezoning the entire subject property from C-N to office, to satisfy the expected demand for government offices. These alternatives would require Planning Commission review. RECOMMENDATION Concur with the Community Development Director's determination of a negative declaration on environmental impact and adopt draft resolution No. 1 to deny the general plan amendment and rezoning with findings recommended by staff. Attachments: vicinity map draft resolution No. 1 (denial) draft ordinance No. 1 (approval) draft resolution No. 2 (approval) applicant's statement information on prior rezoning action PC minutes from July, 1984 PC minutes from September 13, 1985 initial study I 3-s C-T-S k H M M Y s PF C. 40-SP C- � F .�--- gR1OG '.� C-S �' ❑ R-i 5 }�R/-- C/o C/OS - 40 C-T +''� 3 I C/OS-40 C'R • , C-S-S E R-2—PD :- / /OS �jR-2- 1 e C C-R-PD R-2 I" . '•� i S ,Ci C/o s-io - = L V -S J J Y J Y J FT u s R-2-S PF -2 175 C-S W Y BONETTI DR r Ic_S ZgC4 SP <q. / �'• GRgNAOA DRNE / -- C-S crr LOP— ---- C-S R - 2 - S M -SP /OS-2 / Y Tall[ .IN. ROAD t r > t a.�.o welllna■ lloao \ .c oxVALLEY J/ c !! 10 r,> ' R-2 PD 3 r �- .•. cam'/ r a 1 C/oS— lo /, I •v e I � e % e / ( C i ry / �/ / � Y�•jfj L ri \ / " W / t ,/I N S )� 1 � � / 20 O ��OG. •"a•ao.inn u I [.h 4 .Y Y� Z� {: ILI .08 L TO E• . �, REZONED �` ._ Z*i, O S4 �l n+z: .3 ,:. n� a mow:• •f ra \ Ie O e�?�o�a3��v4?�ti:�t.>wt'ts„ �• Ul ti. c tom' A O$ • r. C, . .. .• o C-N r d _ / d " [o � .,a-r t•g4r� Y n 7�INf1 °CMTCR O ' .y 4q s lei 1/f A I S !r 1 No G muo we m W!Leas H-1B-R EXHTRT.T A N -17- R Draft Resolution No. 1 RESOLUTION NO. (1989 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DENYING GENERAL PLAN AMENDMENT GP/R 1451, A REQUEST TO AMEND THE LAND USE ELEMENT MAP FROM NEIGHBORHOOD COMMERCIAL TO OFFICE AT 3238 SOUTH HIGUERA STREET WHEREAS, the applicant requested a general plan amendment to convert a 0.7 acre portion of a 5.2 acre site from C-N, neighborhood commercial to office at the above address; and WHEREAS, the Planning Commission reviewed the request at its September 13, 1989 meeting and forwarded the request to the City Council with a recommendation for denial; and WHEREAS, on October 17, 1989, the City Council conducted a duly noticed public hearing to consider the testimony of the applicant and other interested parties; NOW, THEREFORE, the council of the City of San Luis Obispo takes an action to deny general plan amendment GP/R 1451 based on the following findings: 1. The proposed general plan amendment may adversely affect the health, safety and welfare of persons working on the site or residing in the vicinity. 2. The proposed land use designation is not appropriate at the proposed location and will not be compatible with surrounding land uses. 3. The proposed land use designation is not consistent with the intent, purpose and policies of the general plan. 3�� Resolution No. (1989 series) Page 2 On motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was passed and adopted this _ day of , 1989. Mayor ATTEST: City Clerk APPROVED: City /Administrative Officer /,".,'C# At or� Community Development Director DRaft Ordinance No. 1 ORDINANCE NO. (1989 SERIES) AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING GP/R 1451, AMENDING THE OFFICIAL ZONE MAP OF THE CITY TO REZONE APPROXIMATELY 0.7 ACRES AT 3238 SOUTH HIGUERA STREET FROM C-N TO O-S WHEREAS, the Planning Commission and the City Council have held hearings to consider appropriate zoning on the subject property in accordance with Section 65800 et. seq. of the Government Code; and WHEREAS, the project will not have a significant adverse impact on the environment and has been granted a negative declaration subject to the mitigation measures listed in initial study No. ER 43-89 which is hereby incorporated by reference; and WHEREAS, the proposed rezoning will not be detrimental to the health safety and welfare of persons living or working in the area or at the site; and WHEREAS, the proposed rezoning is consistent with the general plan; and WHEREAS, the "S", special consideration designation is to insure that only government offices occupy the site. NOW THEREFORE BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. That the area shown on the map attached hereto marked Exhibit "A" and included herein by reference, be reclassified from C-N to O-S. Ordinance No. (1989 Series) Page 2 SECTION 2. After review and consideration, the determination of the Community Development Director to approve a negative declaration is hereby affirmed. SECTION 3. A synopsis of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published once in full, at least three (3) days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in said city, and the same shall go into effect at the expiration of thirty (30) days after its said final passage. A copy of the full text of this ordinance shall be on file in the office of the City Clerk on and after the date following introduction and passage to print and shall be available to any interested member of the public. On motion of I seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing ordinance was passed and adopted this _ day of 1989. Mayor ATTEST: City Clerk APPROVED: `City Administrative Officer City/Attorney Community Development Director n 11 rt N w u G C/OBJ- 10 J w G r' w �, -S <„ , i8°."d. Ilk ff w A _.\ y �• CM.IOl ML1T ^ ' ocr[tOnRlNT DCR. / � I I I DUR DlG OUILDIG 1 I Mer•n Ld. : .• / I O SOC L SE 6i r ...VICES :iiia o�'n � I i� j wK Y-rt, I ww<n•�i urer L__ w<r-e0 wn2. L TO BE RE � � � (p1+iRKT01M q4M b � Y '3• :`. .::><:....;:::�:. ::1 4 . 4:; CjY Twq u ,>� L OTT[NlT LCNTCIC } n1I�� Z w o Ch .e9 O 3 1 R • 4 ej�a.t C— C x J J `O. e \ we 00 M760,4e%VO for LM ~f•�x YT v/M I.111e0'0 R.. 000 H-16-R F.XNTRTT A H -17- R DRaft Resolution No. 1 RESOLUTION NO. (1989 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING GP/R 1451, AMENDING THE LAND USE ELEMENT MAP OF THE CITY OF SAN LUIS OBISPO FROM NEIGHBORHOOD COMMERCIAL TO OFFICE FOR A 0.7 ACRE PORTION OF A 5.2 ACRE SITE AT 3238 SOUTH HIGUERA STREET WHEREAS, the Planning Commission and the City Council have held hearings to consider appropriate land use designation on the subject property in accordance with Section 65800 et. seq. of the Government Code; and WHEREAS, the general plan amendment will not have a significant adverse impact on the environment and has been granted a negative declaration subject to the mitigation measures listed in initial study No. ER 43-89 which is hereby incorporated by reference; and WHEREAS, the proposed general plan amendment will not be detrimental to the health safety and welfare of persons living or working in the area or at the site; and WHEREAS, the proposed general plan amendment is consistent with the general plan; and WHEREAS, the proposed land use designation is appropriate at the proposed location and will be compatible with surrounding land uses. NOW THEREFORE BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. That the area shown on the map attached hereto marked Exhibit "A" and included herein by reference, be reclassified from neighborhood commercial to office. 3 ,13 Resolution No. (1989 series) Page 2 On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was passed and adopted this _ day of 1989. Mayor ATTEST: City Clerk APPROVED: r7t-City�AAdministrative Officer �/ ..,i i G"'►� moi.. �'G'i�y At rtr'ey j Community Development Director 3 C/OS - 10 ` S .;. I j, ....I 4 ... l 0 M(i.• '^ h/ C 1'4. .. �... = IT t I W ' /wRNar4 O . -0. Portion Of L The Site To Be �i: ' : F•° L -.� 1 �``► Chan ed Fro"'" �f .OJJJ e hbo hood C;dmmerc i a l z:., % 19. . r �, e 2 v `'•r To TNIC < �'� Ul E • � ae / LA,I14s(IR1 4VSf/ \ .'2.[� 'l t#TS�,,.~�.. �< � "' �: C. Q + fi x C_N : jr .' r�rruy ss+12x i Q ? R °a O S j1�� •r 4 • d I .: .. r,•, F•u.ua+ t ✓JM M44"09- s H-18-R � " KT T T TTl TrT . 1 1 /1 -7 f-1 JUN ;� � June 20, 1989 Mr. Mike Multari Community Development Department City of San Luis Obispo P. O. Box 8100 San Luis Obispo, CA 93403-8100 SUBJECT: 3238 SOUTH HIGUERA STREET REZONING Dear Mr. Multari: With the Planning Commission's June 14 action determining that State Workman's Compensation was a "government use", we .hereby request that the property at 3238 South Higuera Street be rezoned to allow this and/or other government office uses to locate at this address. Indeed, certain Commissioners suggested that a rezoning would be the most appropriate route. Accordingly, we have enclosed all the application forms, exhibits and property owners verification list constituting our application for a rezoning of the area currently occupied by the former Chuck Wagon Restaurant at 3238 South Higuera Street from C-N "Neighborhood-Commercial" to O-S "Office-Special Considerations". Our current Administrative Use Permit request to locate a non-profit organization use in this building remains valid and is not affected by this application. We are submitting this requested rezoning because we see this type of zoning for this property as its best long term use. The 4,000 square foot structure currently occupying the site has historically been used for restaurant purposes by three different concerns who have not been able to make it at this location. With the increasing demand for government offices expansion, the rezoning of this site to O- S would make it a logical, natural adjunct to the South Higuera Social Services Center to the immediate north of this site. As part of this application we offer the following: 3 '�� Mr. Mike Multari Page 2 June 20, 1989 1. Existing building, zoned for restaurant purposes, has never been able to succeed at this location. The infusion of newer restaurants into the nearby C-S zones are now meeting neighborhood needs for restaurant or food services uses. 2. The new land use would have a beneficial impact on parking both for the Padre neighborhood commercial complex as well as the South Higuera Social Services Center. If the building and property were to remain as a restaurant use, 38 parking spaces would be required under City Ordinance. If devoted to government office uses similar to those to the north, only 13 spaces would be required by the City, making for a net of 25 new spaces that would be available to serve these uses. 3. As the increase in demand for government office uses continues, the site is an ideal one to keep pace with that demand. The site proposed for the rezoning is already flanked to the west and north with government office uses. 4. The land use would be a more water-conserving one than trying to continually fill the space with water consuming restaurant uses. Please let us know of any timely hearing dates you might set on this matter, otherwise I look forward to any questions or comments you may wish to discuss with me. Sincerely, RRM DE2S'IIGGNN GR UP J T. Keith Gurne Senior Vice esident Planning Division Attachments a/kg-shg.rz • 'f , 01 0 ` �. c 6d. � • a. I s £ca�� O I o ' L.0 U roo �r / 04Zi N O g e \ to v V ,. u W q 3 stern 1. Public Heari neral Plan Amendment & Rez ' /R 1147. Cons d t of mending the Land Use Element- rlap and Z lon�ng Map to change the designation of approximately 2.9 acres from Neighborhood-Co mercial (C-N) to Office, with Special Considerations (0-S) ; 3240 South Higuera Street; Don Walters, applicant. Greg Smith, Associate Planner, presented the staff report, recommending denial because expansion of the office zoning is not consistent with the land use policies regarding dispersion of office uses and because existing neighborhood-commercial facilities are not adequate to meet the current and future needs of persons working and living in that neighborhood. Chairperson Gerety declared the public hearing open. Keith Gurnee, representative for the applicant, indicating the zoning request to O-S, would place the same limitations on the existing structures, as in the rest of the O-S area. He reviewed past actions affecting the property. He felt the only valid issue raised would be the size of the center, but the size of the center as proposed is 3.9 acres, and is still consistent with the minimum required in C-N zones. He did not feel there was a shortage of neighborhood-commercial space in the area because there was not much demand for the C-N space in the center. If the commission felt the center was too small, he suggested extending the C-N zoning boundary back to the area marked as "Parking Expansion" which would add another 4/10 of an acre to the C-N area. Mr. Gurnee noted that approximately 6000 square feet of C-N usage was presently available in Building 2 and that the tenants that are now renting or are proposed to rent Building 2 and the Social Services building are mostly public agencies. Chairperson Gerety declared the public hearing closed. Commr. Reiss commented that the Building 2 has not attracted viable neighborhood-commercial tenants and was sympathetic to the zoning change. Chairperson Gerety disagreed, feeling that Building 2 was an example of poor site planning. He would prefer leaving the zoning as it is, but as a compromise, he could support Building 2 would be included within the 0-S zone, j ! and leaving the portion marked "Parking Expansion" in the C-N zone. This would make the neighborhood shopping area more in line with current city standards. Commr. Cleeves also supported the compromise. i Ccennr. Schmidt felt the Building 2 could work as a commercial building if another commercial building facing Building 2 was built in the "parking Expansion" area, when the demand materializes. He suggested keeping the present zoning and allowing non-conforming uses in Building 2 until the demand develops for a neighborhood-ccumercial center in that area. Commr. Schmidt moved to deny the rezoning request, leaving the zoning and general plan as is. Chairperson Gerety seconded the motion. VOTING: AYES: Comers. Schmidt, Gerety, and Cleeves NOES: Coamrs. Howard.and Reiss ASSENT: CO=. Dettmer The motion fails. C *03 ommr. Reiss moved to approve the zoning request, changing to O-S as requested. ng n9 the zoning free C-N VU121NC;: AYES: Cormrs. and Howard NOES: Commrs. Cleeves, Schmidt and Gerety ABSENT: Corrmr. Dettmer The motion fails. Chairperson Gerety moved to recommend to the City Council approval of the General Plan Amendment/Rezoning GP/R 1147 from C-N to O-S, but eliminate that portion of property shown as "Parking Expansion" on the map from consideration. I i Cortmr. Cleeves seconded the motion, Resolution No. 2020-84. VOTING: AYES: Commr. Gerety, Cleeves, Howard and Reiss NOES: Carmr. Schmidt ABSENT: Commmr. Dettmer The motion passes. Item 2. Public Hearing: Use Permit A 73-84. Appeal of Hearing Officer's action conditionally approving a request allowing a temporary construction yard anconstruction trailer; 987 San Adriano Court; R-1 zone; Laguna Hill Estates, applicant; Daniel R. Neumann, appellant. Greg Smith, Associate Planner, resented the staff report, recommending denial of the appeal. Chairperson Gerety declared the ublic hearing open. Daniel P. Neumann, 1097 San Adri no Court, appellant, was opposed to the use, stating concerns with increased traffic and safety hazards to children in the area. The construction trailer and yard is an eyesore and incompatible with the residential neighborhood. Rick Webster, representative for Laguna Hills Estates, applicant, stated the use generates little or no traff'c. Most traffic generated relates to building sites. The construction yard is used for storage of materials and equipment for safety and security reasons. He noted all construction sites are all within walking distance of the cDnstruction yard. Traffic and noise are normal based on a construction project Df this size. He noted that some sub-contractors have been working Sundays and past 6:00 p.m. on Sundays, but was not aware this was a problem. He would be agreeable to any limitation of hours the commission might impose. Dr. Geoffrey Chaffe, 944 San Adr ano Court, also opposed the use, stating the use was incompatible with the ne ghborhood and was concerned about property values falling because of the use being there. He noted that the neighborhood was originally designed as a cus om-home development and felt that the use of the area has been changed with tie issuance of the permit for the construction yard. He also noted there is a iesel tank and pump located on the site with no lock which is a safety hazar He indicated most of the neighborhood was opposed to the use because of traffic congestion, dust, and noise. Mr. Webster noted that the diesel tank is empty and has no objection to .onn.ri nn i h Draft P.C. Minutes September 13, 1989 S. Public Hearing: General Plan Amendment 8 Rezoning GP/R 1451. Consideration of amending the Land Use Element map and zoning map to change the designations from neighborhood-commercial (C-N) to office, special considerations (O-S) for property at 3239 South Higuera Street; Walter Brothers Construction Co., applicant. Judith Lautner, Associate Planner, presented the staff report and recommending denial of .the request. Commrs. Hoffman, Karleskint, and Crotser stated they had spoken with the applicant. Chairperson Duerk opened the public hearing. John Wilbanks, 3026 S. Higuera Street, applicant's representative, discussed the project history and the request. He discussed general plan guidelines and C-N zone uses. He cited Policies #6 and #7 of the Land Use Element regarding convenience commercial uses. He did not feel the county project should be considered in the analysis and stated the applicant had demand for the available square footage as office space. He felt the request was consistent with the tri-polar concept and felt the existing building should be utilized to capacity. He submitted a list of suggested findings and conditions. Chairperson Duerk closed the public hearing. Commr. Roalman stated he supported the request. Commr. Kourakis was concerned with the long-term effects of changing the zoning, saying it was premature considering the general plan update process. Commr. Crotser did not want to delete C-N from this neighborhood without having a replacement area. Commrs. Karleskiat and Hoffman felt the change to O-S zoning would support the tri-polar concept and office needs. They did not feel this was a viable C-N site. Chairperson Duerk felt C-S uses wee different from C-N uses and was reluctant to change the zoning and diminish the C-N parcel. Commr. Kourakis moved to deny the request as she could not make the findings. Commr. Crotser seconded the motion. AYES: Kourakis, Crotser, Duerk NOES: Hoffman, Karleskint, Roalman ABSENT: Schmidt 3 - � I P.C. Minutes September 13, 1989 Page 2 The motion fails. The commission discussed options available to move the project along. The applicant's representative stated a continuance would not be acceptable. Commr. Roalman moved to recommend denial as the findings could not be made, saying that he changed his vote to allow the request to go on to the City Council. Commr. Rourakis seconded the motion. AYES: Roalman, Rourakis, Crotser, Duerk NOES: Hoffman, Karleskint ABSENT: Schmidt The motion passes. 3 -O city of san lues osispo i'IIII�III IIIII�I I!Ili!iillill i��l. 11��►'�''' IN STUDY OF ENVIRONMENTAL IMPACT SITE LOCATION 3238 S. H i guera Street APPLICATION NO. ER43-89 PROJECT DESCRIPTION GP/R 1451 , request to rezone a 0.7 acre portion of a 5.2 acre site from C-N, neighborhood commercial , to office with special considerations. APPLICANT Don Walters 1 STAFF RECOMMENDATION: _NEGATIVE DECLARATION —MITIGATION INCLUDED, EXPANDED INITIAL STUar• UIRED ENVIRONMENTAL IMPACT REPORT REQUIRED PREPARED BY David PT n, Associate Planner DATE 8/27/89 COMMUNITY DEVELOPMENT DIRECTOR'S ACTION: DATE SUMMARY OF INITIAL STUDY FINDINGS 1. DESCRIPTION OF PROJECT AND ENVIRONMENTAL SETTING 11.POTENTIAL IMPACT REVIEW POSSIBLE ADVERSE EFFECTS A. COMMUNITY PLANS AND GOALS ................................................... nlpne B. POPULATION DISTRIBUTION AND GROWTH.......................................... None. C. LAND USE ........................................................................ None. D. TRANSPORTATION AND CIRCULATION __....__.__. None.* E PUBLIC SERVICES ...................... ........................ None.* F. UTILITIES.................................................... ................... None. G. NOISE LEVELS ......................... .... None.* H. GEOLOGIC&SEISMIC HAZARDS&TOPOGRAPHIC MODIFICATIONS .................... None. I. AIR QUALITY AND WIND CONDITIONS............................................... None. J. SURFACE WATER FLOW AND QUALITY .............................................. None. K PLANT LIFE...................................................................... None. L ANIMALLIFE...................................................................... None. M. ARCHAEOLOGICALIHISTORICAL ................................................... None. N. AESTHETIC ...................................................................... None. None. O. ENERGWRESOURCE USE .......................................................... None. P. OTHER .......................................................................... III.STAFF RECOMMENDATION Negative declaration. 'SEE ATTACHED REPORT yB ay 3 ' Initial Study ER 43-89 Page 2 I. DESCRIPTION OF PROJECT AND ENVIRONMENTAL SETTING The applicant wants to amend the land use element of the general plan and rezone a .7 acre portion of a 5.2 acre site at the northwest corner of Prado Road and South Higuera Street from C-N, neighborhood commercial, to office with special considerations. The site is flat and is currently occupied by a 3800 square foot commercial building and parking for 38 vehicles, and adjoins an office complex which contains numerous government agencies. The site has multiple land use designations, divided about equally between office and neighborhood commercial. H. POTENTIAL IMPACT OVERVIEW A. Community Plans and Goals The site appears to be well suited for both neighborhood commercial activities and office, as witnessed by the multiple zoning of the site. The land use element favors neighborhood commercial centers which are between two and five acres in size to serve the needs of local residential neighborhoods. In this case, the portion of the site which will remain C-N will be approximately 2.5 acres, a reduction of approximately 21%. In light of the expected development of a major residential expansion area immediately east of the site (Margarita), the ability of this site to serve the needs of this neighborhood will be slightly diminished. However, there remains development potential on the remaining C-N land. Evaluation: Not Significant The land use element also allows limited expansion of office districts outside the central business district when the expansion is based on an established group of offices. In this case, the office center adjoining the site has been identified as part of the "triad" of government office centers in the city, the others being the county hospital area and the downtown government center. The expansion of the office designation of this site would be in keeping with the city's policies regarding the location of government offices. Evaluation: Not Significant D. Transportation Trip generation rates for office uses are generally lower than for neighborhood commercial uses, although peak hour trip characteristics could be slightly higher for office uses because of their hours of operation. The net difference between the two land uses should not constitute an adverse impact. Parking requirements for offices are equal to or less than for C-N type uses. Evaluation: Not Significant E. Public Services The provision of public services will likely be equal or less than for the C-N designation. Office uses are generally less water intensive than certain C-N zone uses such as a restaurant, although office projects typically have larger areas of irrigated landscaping. Evaluation: Not Significant G. Noise Noise exposure requirements are the same for both office and commercial land uses. 3 I ER 43-89 ' Page 2 I•I1..STAFF RECOMMENDATION . Negative.declaration. _ I 3 a. Mc-nNG J AGENDA DATE # (nUenotes action by Ltac F'aao; R R M 1) I: ti I G N G K O LI P Respond by. Vcouncil VCA. October 13, 1989 5VC'n'Arty I]Clelk9d mss/ Mayor Ron Dunin City of San Luis Obispo ,I E C E I V E D P. O. Box 8100 San Luis Obispo, CA 93403-8100 OCT 1 3 1989 Re: Padre Plaza/Walter's Center Rezoning Request CITY CLERK (Case No. GP/R1451) SAN LUIS OBISPO.CA Honorable Mayor Dunin: I am writing on behalf of Don Walter regarding public hearing item No. 3 at your Council meeting scheduled for October 17th. Mr. Walter is requesting a general plan amendment and rezoning of a portion of his property from C-N "Neighborhood Commercial" to O-S "Office - with Special Considerations". My purpose in writing to you is in response to the Staffs recommendation for denial of this request. I would like to appeal to your sense of planning logic in your consideration of this matter. While Staff's recommendation continues to be for denial, it is clear in their own analysis contained in the Council Agenda Report, that there is merit to the proposal. This was also evidenced by the split vote of the Planning Commission. I think you will see in the following discussion that your Council should approve the general plan amendment and rezoning request by adopting Draft Ordinance No. 1 and Draft Resolution No. 2 as outlined in the Council Agenda Report. it The staff is recommending denial of the proposed amendment and rezoning based primarily on the insufficiency of the remaining C-N zoned land to serve expanding demand for neighborhood commercial services. There are several points I would like to make relative to their concerns. I think their analysis failed to take into consideration a number of extenuating conditions that make this particular C-N zoned piece of property unique in its location and function. A primary concern the staff appears to have is that the request will result in a C-N zone property of less than 2 acres. The City's General Plan sets forth the policy supporting the concept of neighborhood convenience centers ranging from 2-5 acres in size, depending upon the service area. The first important thing to point out relative to that policy is that it is aimed at the creation of new neighborhood eo- ., s: rs . , ; October 13, 1989 Page 2 convenience centers which is evident in the language of the policy (i.e. "support the concept of..."). This policy is by no means a mandate aimed at dictating or regulating the size of neighborhood commercial centers. The second point I would like to make is relative to the center's size. The C-N zone was created to allow for the placement of commercial services within residential neighborhoods for the purpose of serving the convenience needs of those residents living nearby. It is not typical that a neighborhood commercial shopping center would have a significant amount of alternative commercial zoning surrounding it, as is the case here. There is a considerable amount of undeveloped, as well as developed, C-S zoned property surrounding the subject neighborhood commercial site. The C-S (Commercial Service) zone allows for 30 of the same commercial uses that are allowed in the neighborhood commercial zone plus an additional 64 categories of use not allowed in C-N. There are only 13 use categories allowed in C-N and not in C-S (see attached Exhibit A). So to consider this C-N zoned site as a sacred cow because of its size and location is misleading when there is a considerable amount of surrounding C-S zoned property that can accommodate many of the "neighborhood serving uses". The C-N zone was not intended to be located within other commercial district areas, which the South Higuera/Prado Road area has turned into. So the significance of this C-N zoned property to surrounding residents is considerably diminished given its location being surrounded by C-S zoned properties. The second issue also related to the center's size is that even if the subject C-N zoned property was considered the Neighborhood Commercial Center for the area suggested by staff, there is no way that the type of commercial facilities needed to serve the larger population could be accommodated on this site (e.g. a large grocery store, drug store and ancillary uses, etc.). It's too late for that. The Williams Brothers shopping center located on Broad Street and the Laguna Village shopping center located on Madonna Road and Los Osos Valley Road are more exemplary of what a neighborhood commercial center should be. Clearly that type of center would never fit on what is left of the C-N zoned property at the Walter Center. With the addition of residential units in the expansion areas, as discussed by staff in their Staff Report, there will also be the addition of streets which will provide for more convenient and shorter distances to access the Broad Street corridor, hence making the Williams Brothers shopping center probably a more logical neighborhood commercial center for this area (it is only one mile from the expansion areas -see exhibit B). October 13, 1989 Page 3 In contrast, the primary service that the existing Padre Plaza is providing is convenience to the surrounding government offices and commercial uses located within the South Higuera Commerce Park and along the Higuera corridor. The residential service area is limited as noted by staff (±350 residents). The plaza is just beginning to function at a level of activity to suit its size. Business still will slow down substantially in the evenings and on weekends. There are additional neighborhood convenience commercial land use policies contained within the City's General Plan that the staff has overlooked in their analysis that 1 think play a significant role in the consideration of this request. Those are policies No. 6 and 7 which state: "6. Scattered, small scale convenience commercial stores within established residential neighborhoods may be retained where their operation is proven compatible with surrounding uses. Existing stores should be evaluated as to the conditions and character of their operations and encouraged to improve where necessary to better integrate with the surrounding residential land uses. Where evaluations show compatibility and/or lack of market needs, the City should prohibit the intensification and/or expansion of isolated neighborhood commercial facilities and should provide for their long- term replacement with land uses typical of the surrounding neighborhood. "T Scattered convenience commercial use within retail or industrial districts should be consolidated to form .more efficient convenience centers or relocated to more suitable sites adjacent to residential districts." These two policies suggest that where the market indicates a lack of need for the neighborhood commercial that it should be phased out and replaced with land uses typical of the surrounding neighborhood. In this particular case the surrounding neighborhood is in fact government office uses, so it would prove logical that in the longer term perhaps the C-N zoning on this property should be phased out. Currently the request is only for a portion of the C-N zone site as the balance of the site is still functioning appropriately with the market demand in the area. October 13, 1989 Page 4 Policy No. 7 is important to consider in the long-term view of things because it is clear that saving even the existing area of C-N zone property at this corner will not effectively provide service to the residential build-out that can occur in the immediate surrounding area and, as such, again this neighborhood commercial site should probably be phased out over the long-term. A more suitable, larger neighborhood commercial site should be planned in better proximity to the residential districts. As suggested in the Staff Report perhaps the Prado Road extension would provide for an appropriately designated neighborhood commercial site or, as I have suggested above, perhaps the existing commercial facilities located along the Broad Street corridor and on Madonna and Los Osos Valley Road will begin to function more efficiently as neighborhood commercial centers as access is improved throughout the area. The important point is that denial of this request does not solve the longer term neighborhood commercial needs for the 10 to 20 year time frame, if in fact the expansion areas are annexed and developed. While the staff is right in having concern for the long-term neighborhood commercial needs in the vicinity, it is unjustified to suggest that the subject request should be denied. Denial will not solve the longer term question nor will approval create a short term problem. The staff also suggests that the subject request is not warranted because the County plans to construct a ±30,000 square foot building to accommodate their entire Social Services Department across the street. The staff points out that this is 5 years away. The County has not to date filed an application for the City's consideration. It will necessitate a Land Use Element Amendment and Zone change of a nature similar to this request. The demand, based upon the historical growth in the existing Walter Center and in response to the City's Tri-polar concept for locating office uses in the City, will very likely be at or beyond the level capable of being absorbed by 30,000 square feet or more by the time that floor space is available. Nevertheless, this application is before the Council now and represents a response to the present demand (see attached letters). To base a decision today on a future application for development is not only inappropriate but also represents a dangerous precedent for consideration of future applications as it can be construed as giving preferential treatment to one applicant over another. Therefore, the County's consideration for construction of a new facility should not be a significant factor in your decision-making on this request. i I October 13, 1989 Page 5 The proposed amendment and zone change request is consistent with the City's General Plan policies aimed at continuing the focus on the tri-polar concept for office use location. As I am sure most of the Council is aware, this entire 13 acre site was originally zoned C-N Neighborhood Commercial. At that size it would have served the appropriate function for the ultimate growth of residential uses in this area. However, there has been clear policy direction on the part of the City (i.e. the Tri- polar concept) to focus on government offices locating on this site. There is no doubt that this request is consistent with that policy direction. With consideration given to the request's consistency with this land use policy as well as the other land use policies relating to neighborhood commercial in the City's General Plan it is clear that the Council can find this request consistent with the City's General Plan more appropriately that it can be found to be inconsistent. The findings outlined in the draft resolution No. 1 for denial of this request cannot legitimately be made by the Council (see page 3-8 of your Council Agenda packet). The only inconsistency that the staff has been able to determine in their analysis relates to the size of the center. To reiterate, that particular policy is clearly intended for guidance in the locating and creation of new sites for neighborhood commercial services below a specific size. The conclusion is substantiated by the language in policies 6 and 7 discussed above. In summary, the benefits of the proposed request are: 1. Consistency with the tri-polar concept by furthering the City policy to concentrate the location of government office uses in this vicinity and serving as a logical expansion of the existing government office center. a 2. Reduced parking demand. 3. Reduced water use over typical C-N uses (particularly a restaurant). 4. Allowing for the phasing out of the C-N uses on this site in a manner consistent with the market demand for government offices and the timely phasing out of the C-N uses on the property. 5. Keeping state office users from relocating out the City of San Luis Obispo (e.g. California Highway Patrol). October 13, 1989 Page 6 To deny this request is to deny Mr. Walter the beneficial use of his building. The market for additional commercial uses is not strong, as is evident by the past failures of previous tenants in the building, while the demand for the government offices is substantiated herein. I urge the Council to support this request by adopting Draft Ordinance No. 1 and Draft Resolution No. 2 and at the same time directing staff to explore the possibility of including a C-N zoned site within one of the expansion areas or the Airport Area through one of the proper long-range planning process currently under way (i.e. the City's General Plan Update or the City/County Airport Area Specific Plan process). Thank you for your consideration in this matter. Sincerely, RRM. DESIGN GROUP .r J John B.�Wilbanks, AICP Senior Vice President Planning Division cc: Mr. Don Walter j Mr. Keith Gurnee, RRM ' a/jw-padre.rez COMPARISON OF USES ALLOWED IN GN AND C-S ZONES ALLOWED IN BOTH GN AND C-S ZONES (30 USES) Amusement arcades Athletic and health clubs, gymnasiums, fitness centers, tanning centers Bars, taverns, etc. Barbers, hairstylists, manicurists, tanning centers Caretaker's quarters Carwash - self-service Cemeteries, mausoleums, columbariums Christmas tree sales Churches, synagogues, temples, etc. Circus, carnival, fair, festival, parades Construction activities Hot tubs - commercial use Laundry/dry cleaner - pickup point, self-service Mineral extraction Mobile home as construction office Organizations (professional, religious, political, labor, fraternal, trade, youth, etc.) offices and meeting rooms Photocopy services; quick printers Photo Finishing - retail Photographic studies Repair services - household appliances, locksmiths, saw sharpening, shoe repair Restaurants, sandwich shops, takeout food, etc. Retail sales and repair of bicycles Retail sales - groceries, liquor and specialized foods (bakery, meats, dairy items, etc.) Retail sales - 15,000 square feet or less gross floor area per establishment - 15,001 to 60,000 square feet gross floor area per establishment Service stations Temporary sales Temporary uses - not otherwise listed in Section 17.08.010K Vending machines ALLOWED IN C-N, BUT NOT IN C-S (13 USES) Bank Branches Dwellings Florists Branch Libraries Temporary Residence Mobile Homes Parks Pool Halls Residential Care Facilities Retail Sales & Rental - specialties Day Care Centers Social Service, Charitable Agencies Theaters Utilities' Payment Drops 64 ADDITIONAL USES ARE ALLOWED IN C-S ONLY EXHIBIT A Cp.\ j N 4 1 i a n ,•,c a � A..�'•. fit" ` "m / v U V/ G G LLI �r CC o N n ¢ ? I (n cc �f LU �I i J � W ZLU U acj .n - Z a N •N N N]q��: �• �a cc J - -� C U � O O U LL LUcc o g M a N LL- r _ a g� EX IBIT B COUNTY OF SAN LUIS OBISPO A bepamment of qcncQat scQvices ZNMI NI C ENTER, -SAN LUIS OBISPO. ('ALIFORNIA 0340,9 (603) 541' .;200 COUNTY GOVER ISI ANI I' I I Ili ISINI I(IN April 6, 1989 Walter Bros. Construction P.O. Box 807 San Luis Obispo, CA 93406 3220 SOUTH HIGUERA STREET The County is experiencing a critical shortage of office space at the above referenced facility. We are hoping to expand into the 2500 square foot space presently occupied by State Compensation. We will need this space for approximately three years. Please advise me as to when and if this space will be available, and let me know if I can be of assistance in bringing this request to fruition. Thank you for your time and consideration in this matter. CURTIS SORG County Property Manager mke/0350w/M#1 4-13 STATE OF CALIFORNIA—STATE AND CONSUMER SERVICES AGENCY a GEORGE DEUKMEJIAN, Gowr"or DEPARTMENT OF GENERAL SERVICES Office of Real Estate and Design Services 400 "P" Street, Suite 3110 Sacramento, California 95814 (916) 445-2716 FAX (916) 323-5607 August 15, 1989 TRANSACTION NO. 8903091 Mr. Don Walter President Walter Brothers Construction P. 0. Box 809 San Luis Obispo, CA 93406 Dear Don: This letter is to confirm our conversation of today. The Alcohol Beverage Control lease extension was fully executed today. Because of my workload I have not yet prepared the lease extensions for Department of Justice, Department of Consumer Affairs or Department of Parks and Recreation. I will have those prepared and executed prior to September 15, 1989. The rental rate has been negotiated and agreed at $1.40 per square foot. Also, the California Highway Patrol is very interested in leasing the remaining space in your building. Sincerely, TERRY W. BIRD Leasing Officer TWB:ca:G074ABC8.15 cc: Chase Osborne, Imperial Bank N San Luis Obispo County Narcotics Task Force WA17E January 4 , 1989 .14N rrr. rf Mr . Don Walter Walter Brothers Construction San Luis Obispo , CA 93401 Dear Mr . Walter : It is our intention to lease an additional 300 square feet in addition to our current 1 , 370 square foot office , as soon as the 300 square feet become available . This will satisfy temporarily our needs for additional space . However , due to the growth our programs are experiencing , both in terms of personnel and equipment , we will be in need of additional office space in the near future . Our department would appreciate notification of any available space you may have in any of your buildings in the future . Sincerely , James Christian Special Agent Supervisor California Dept . of Justice Bureau of Narcotic Enforcement J C : s d Post Office Box 3110, San Luis Obispo, California 93403 Telephone (SOS) 549-3415 ATSS 629-3415 STATE COMPENSATION I N S U R A"CE FUND 1275 MARKET STREET SAN FRANCISCO.CA 94103-1410 w ul I•, v ul_rf.n tu: January 3 , 1989 WALT[:,' MDon C. Walter (atl - (; �," :!� Walter Bros. Construction Co. co" rn. 17. P.O. Box 809 San Luis Obispo, CA 93406 Dear Mr. Walter Thank you for your telephone call today. I was happy to hear that . the signed lease is on it 's way via Federal Express . Having the signed lease is definitely a positive way to start the new year. Now that our lease negotiations for 3220 So. Higuera are behind us , there i5 one point that I wish to bring to your attention. Our staffing needs for the San Luis Obispo area are uncertain at this time and are liable to change. Therefore, I would appreaciate notification of any available space you may have in any of your buildings in the future. Even though the space we now occupy is adequate for our present staff, we would be most interested in knowing what space is available in your buildings at any given time. 1ncere "ly Gloria Rodriguez Asst. Real Property Manager (415) 565-1213 a 1 s cc - C. Cohn cc - A. Hershenson MAIL ADDRESS: P.O. BOX 807 SAN FRANCISCO. CA 94101-0807 STATE COMPENSATION INSURANCG BUND lilm1 7279 'N HEH.r AUCA To March 22, 1989 Mr. Donald C. Walter Walter Bros. Construction Co. , Inc. P. 0. Box 809 San Luis Obispo, CA 93406 Dear Mr. Walter Please consider this letter notice of our intent to modify the existing Lease between Walter Bros. Construction Company, Inc. and State Compensation Insurance Fund to cover the relocation of our legal offices from the building located at 3220 South Higuera Street to the building located at 3238 South Higuera Street, San Luis Obispo, California. The terms of the modifications to the Lease are to include: A. A three-year lease term commencing upon the date of occupancy. B. A monthly rental rate of $1.35 per net rentable square foot, modified full service. Fund to pay utilities and reimburse for Janitorial service. C. Landlord is to provide space planning services and build-to-suit quarters comparable to our existing space. D. The Fund shall have the option to ext@nd the Lease for an additional two- (2) year term upon six (6) months notice to Landlord. E. The Fund shall have the right to use four (4) parking spaces for every 1.000 square feet of rentable space. F. All other terms and conditions of the existing Lease dated December 29. 1988 are to continue as applicable. 6. CPI Adjustment for the modified Lease is to begin one year from the date of occupancy. 1175 Market Street•San Frandsoo.CA G4103-1410 Ma'fn0 Adareu:P.O.Born 807.San Frandow.CA 94101-0907 I Mr. Donald C. Walter - 2 - March 22, 1989 It is understood that this letter of intent is contingent upon the following conditions; and that this Agreement shall not be binding, upon either party and only a fully executed amendment to the Lease shall legally bind the partners: 1. The installation of additional window is satisfactory to the Fund. 2. A minimum of nine- (9) foot ceiling throughout the proposed space. 3. Renovation and thorough cleaning of HVAC system. 4. Landlord to provide Fund with a preliminary space plan showing the utilization of the proposed space as a legal office. Sincerely Gloria Rodriguez Asst. Real Property Manager (415) 565-1213 cjp cc - Charlie Cohn cc - Art Hershenson