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HomeMy WebLinkAboutItem 6e Adoption of O- 1749 Revoking PD overlay at 1144 Chorros Street Item 6e Department: Community Development Cost Center: 4008 For Agenda of: 9/2/2025 Placement: Consent Estimated Time: N/A FROM: Timmi Tway, Community Development Director Prepared By: Hannah Hanh, Associate Planner SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1749 (2025 SERIES) REVOKING THE PLANNED DEVELOPMENT OVERLAY (ORDINANCE NO. 1687 [2020 SERIES]), RELATED TO A DEVELOPMENT PROJECT AT 1144 CHORRO STREET, AND AMENDING THE ZONING MAP FOR THE SEVEN (7) ASSOCIATED P RECOMMENDATION Adopt Ordinance No. 1749 (2025 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, revoking the Planned Development Overlay (Ordinance No. 1687 [2020 Series]), related to a development project proposed at 1144 Chorro Street, and amending the Zoning Map to rezone the seven (7) associated properties from C-D-PD and C-D-H-PD to C-D and C-D-H, respectively. The project is exempt from environmental review (CEQA) (1144 Chorro Street; 895, 898, and 973 Higuera Street; 876 and 890 Marsh Street; and 868 and 870 Monterey Street; PDEV- 0428-2023).” PROJECT REQUEST On behalf of Copeland Properties, Jamestown Premier Retail LP, and NKT Commercial (Applicants and Affected Property Owners), Mark Rawson (Representative) submitted a Planned Development (PD) Amendment (PDEV-0428-2023) to revoke the PD Overlay (Ordinance No. 1687 [2020 Series]) for seven (7) properties located at 1144 Chorro Street; 895, 898, and 973 Higuera Street; and 876 and 890 Marsh Street, all of which are owned by the Affected Property Owners. Revocation of the PD Overlay would rezone these properties from the Downtown Commercial Zone with Planned Development Overlay (C-D-PD) and Downtown Commercial Zone with Historic and Planned Development Overlays (C-D-H-PD) to Downtown Commercial Zone (C-D) and Downtown Commercial Zone with Historic Overlay (C-D-H), respectively. The PD Overlay was originally adopted for these properties in order to facilitate a specific mixed-use development proposed at 1144 Chorro Street . Due to various changes in circumstances, this proposed mixed-use development will no longer occur, and the Applicants are now requesting to revoke the PD Overlay as a clean -up to the Zoning Map. Revocation of this overlay is intended to clarify the regulations that would apply to future development projects on these affected properties. Page 189 of 357 Item 6e POLICY CONTEXT Per San Luis Obispo Municipal Code (SLOMC) Section 17.48.100, a rezoning process, which includes review by the Planning Commission and adoption by the City Council, is required to remove the PD Overlay. DISCUSSION Previous Council and Advisory Body Review On September 17, 2019, the City Council initiated the project review with consideration of the Community Benefits and Mandatory Project Features for the PD Overlay (ARCH - 1687-2018, PDEV-0509-2019, and EID-0475-2019). On June 1, 2020, the Architectural Review Commission recommended approval of the mixed-use project with direction to the Planning Commission for consistency with the Community Design Guidelines (ARCH-1687-2018, PDEV-0509-2019, and EID-0475- 2019). On June 22, 2020, the Cultural Heritage Committee recommended approval of the mixed- use project with direction to the Planning Commission for consistency with the Historic Preservation Ordinance and Historic Preservation Program Guidelines (ARCH-1687- 2018, PDEV-0509-2019, and EID-0475-2019). On July 8, 2020, the Planning Commission recommended approval of the mixed-use project with direction to the City Council for consistency with the General Plan and Zoning Regulations (ARCH-1687-2018, PDEV-0509-2019, and EID-0475-2019). On August 18, 2020, the City Council introduced an ordinance amending the Zoning Regulations Map to change the zoning designation of seven (7) properties from C -D-H to C-D-H-PD and C-D to C-D-PD for a PD Overlay; and approved the mixed-use project consisting of approximately 30,000 square feet of commercial/office space and 50 residential dwelling units (ARCH-1687-2018, PDEV-0509-2019 and EID-0475-2019). On September 1, 2020, the City Council adopted an ordinance (Ordinance No. 1687 [2020 Series]) amending the Zoning Regulations Map to change the zoning designation of the associated properties from C-D to C-D-PD and C-D-H to C-D-H-PD (PDEV-0509- 2019 and EID-0475-2019). On August 28, 2024, the City Council’s approval of the mixed-use project consisting of approximately 30,000 square feet of commercial/office space and 50 residential dwelling units expired (ARCH-1687-2018, PDEV-0509-2019 and EID-0475-2019). On May 15, 2025, the Community Development Department received a complete application submittal confirming that all affected owners of the seven (7) associated properties are in agreement and request to revoke the PD Overlay (PDEV-0428-2023). Page 190 of 357 Item 6e On July 9, 2025, the Planning Commission reviewed and unanimously recommended the City Council revoke the PD Overlay because required findings for its initial approval would no longer be applicable and/or met. On August 19, 2025, the City Council voted 5 – 0 to introduce Ordinance No. 1749 (2025 Series) revoking the PD Overlay (Ordinance No. 1687 [2020 Series]), related to a development project proposed at 1144 Chorro Street, and amending the Zoning Map to rezone the seven (7) associated properties from C-D-PD and C-D-H-PD to C-D and C-D- H, respectively. While the PD Overlay does not preclude changes in use (e.g., changes in commercial uses) for these properties, its revocation would address potential confusion and/or conflict for future development projects that include the construction of new residential units on individual properties affected by the overlay. If Council adopts Ordinance No. 1749 on September 2, 2025, it shall be effective 30 days after its final passage. Public Engagement In accordance with Government Code Section 65854, public notice was provided at least 20 days before the Planning Commission hearing on July 9, 2025. Public notice was duly provided for introduction and adoption by the City Council on August 19, 2025 and September 2, 2025, respectively. The public has the opportunity to comment on the item before and/or at each hearing. CONCURRENCE The Council Agenda Report was reviewed by the Community Development Department, Finance Department, City Attorney, and City Administration for concurrence. ENVIRONMENTAL REVIEW The project is exempt from environmental review under Section 15 061(b)(3) (General Rule Exemption) 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 scope of this request is limited to an amendment on the Zoning Map and does not facilitate any deve lopment project, it would not have an effect on the environment. Additionally, the mitigation measures required as part of the PD Overlay adoption in 2020 were only applicable to the development project for 1144 Chorro Street as proposed at the time. Should there be any new development proposed at 1144 Chorro Street or any of the other affected properties, those projects would be evaluated on an individual basis for consistency and compliance with all applicable regulations in effect at that time, including environmental review. FISCAL IMPACT Budgeted: N/A Budget Year: 2025-26 Page 191 of 357 Item 6e Funding Identified: Yes Fiscal Analysis Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ 0 $ 0 $ 0 $ 0 State Federal Fees Other: Total $ 0 $ 0 $ 0 $ 0 The PD Amendment application for this revocation request was paid by the Applicant, and there is no upfront cost resulting from the revocation of the PD Overlay on the Zoning Map. If Council adopts the Ordinance to revoke the overlay, subsequent development projects proposed on these properties would be subject to the appropriate permitting applications, which are applicant-funded review processes. ALTERNATIVES 1. Council may decide to modify the Ordinance to revoke the PD Overlay before adoption. Depending on the changes proposed, modification of the Ordinance may require reintroduction and then adoption during a subsequent public hearing, which will delay implementation of the Ordinance. 2. Council may decide not to adopt the Ordinance to revoke the PD Overlay. Retention of the PD Overlay would mean that a reference to an expired development project and its associated requirements would remain on the Zoning Map. If the reference remains, it may result in (a) confusion related to the number of allowable density units for individual properties affected by the overlay and/or (b) conflict for future development projects that include the construction of new residential units because one of the primary purposes of this PD Overlay is to allow the transfer of density credits to a specific property at 1144 Chorro Street. ATTACHMENTS A. Ordinance No. 1749 (2025 Series) Page 192 of 357 O _____ ORDINANCE NO. 1749 (2025 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, REVOKING THE PLANNED DEVELOPMENT OVERLAY (ORDINANCE NO. 1687 [2020 SERIES]), RELATED TO A DEVELOPMENT PROJECT PROPOSED AT 1144 CHORRO STREET, AND AMENDING THE ZONING MAP TO REZONE THE SEVEN (7) ASSOCIATED PROPERTIES FROM C-D-PD AND C-D-H-PD TO C-D AND C-D-H, RESPECTIVELY. THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW (CEQA) (1144 CHORRO STREET; 895, 898, AND 973 HIGUERA STREET; 876 AND 890 MARSH STREET; AND 868 AND 870 MONTEREY STREET; PDEV-0428-2023) WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on September 17, 2019, initiating the project review with consideration of the Community Benefits and Mandatory Project Features for the Planned Development Overlay (PD Overlay), pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509-2019, and EID-0475-2019; Mark Rawson, applicant; and WHEREAS, the Architectural Review Commission of the City of San Luis Obispo conducted a web-based public hearing on June 1, 2020, recommending approval of the project with direction to the Planning Commission for consistency with the Community Design Guidelines, pursuant to a proceeding instituted under ARCH-1687-2018, PDEV- 0509-2019, and EID-0475-2019; Mark Rawson, applicant; and WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted a web-based public hearing on June 22, 2020, recommending approval of the project with direction to the Planning Commission for consistency with the Historic Preservation Ordinance and Historic Preservation Program Guidelines, pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509-2019, and EID-0475-2019; Mark Rawson, applicant; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a web-based public hearing on July 8, 2020, recommending approval of the project with direction to the City Council for consistency with the General Plan and Zoning Regulations, pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509- 2019, and EID-0475-2019; Mark Rawson, applicant; and WHEREAS, the City Council of the City of San Luis Obispo conducted a web - based public hearing on August 18, 2020, introducing an ordinance amending the Zoning Regulations Map to change the zoning designation of seven (7) properties from C-D-H to C-D-H-PD and C-D to C-D-PD for a PD Overlay; and approving the development of a six-story mixed-use building consisting of approximately 30,000 square feet of commercial/office space and 50 residential dwelling units pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509-2019 and EID-0475-2019; Mark Rawson, applicant; and Page 193 of 357 Ordinance No. 1749 (2025 Series) Page 2 O ______ WHEREAS, the City Council of the City of San Luis Obispo conducted a web - based public hearing on September 1, 2020, approving the PD Overlay for seven (7) properties within the Downtown Commercial Zone and adopting an ordinance (Ordinance No. 1687 [2020 Series]) amending the Zoning Regulations Map to change the zoning designation of the associated properties from C-D to C-D-PD and C-D-H to C-D-H-PD pursuant to a proceeding instituted under PDEV-0509-2019 and EID-0475- 2019; Mark Rawson, applicant; and WHEREAS, the City Council’s approval of a six-story mixed-use development consisting of approximately 30,000 square feet of commercial/office space and 50 residential dwelling units, instituted under ARCH-1687-2018, PDEV-0509-2019 and EID- 0475-2019, expired on August 28, 2024, and the property owner of 1144 Chorro Street does not wish to re-initiate; and WHEREAS, the City’s Community Development Department received a complete application submittal on May 15, 2025, confirming that all affected owners of the seven (7) associated properties are in agreement and requesting to revoke the PD Overlay, related to the development project proposed at 1144 Chorro , instituted under PDEV- 0428-2023; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on July 9, 2025, recommending the City Council revoke the PD Overlay related to the development project proposed at 1144 Chorro and amend the Zoning Map to rezone the seven (7) associated properties from C-D-PD and C-D-H-PD to C-D and C-D- H, pursuant to a proceeding under PDEV-0428-2023; Copeland Properties, Jamestown Premier Retail LP, and NKT Commercial, applicants; 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 August 19, 2025, for the purpose of introducing an Ordinance to revoke the PD Overlay related to the development project proposed at 1144 Chorro and amend the Zoning Map to rezone the seven (7) associated properties from C-D-PD and C-D-H-PD to C-D and C- D-H, pursuant to a proceeding under PDEV-0428-2023; Copeland Properties, Jamestown Premier Retail LP, and NKT Commercial, applicants; 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: Page 194 of 357 Ordinance No. 1749 (2025 Series) Page 3 O ______ SECTION 1. Findings. Based upon all evidence, the City Council revokes the Planned Development Overlay, related to the development project at 1144 Chorro Street, because the required findings previously made for Ordinance No. 1687 (2020 Series) would no longer be applicable and/or met, based on the following: 1. The purpose of adopting this PD Overlay in 2020 was to facilitate a specific accompanying project at 1144 Chorro Street; 2. Approval of that accompanying project at 1144 Chorro Street (ARCH-1687- 2018, PDEV-0509-2019, and EID-0475-2019) has expired; 3. Any community benefits and mandatory project features required of, or resulting from, the development project would no longer occur because the accompanying project approval has expired and the property owner of 1144 Chorro Street does not wish to re-initiate; 4. All current owners of the seven (7) affected properties do not wish to re -initiate the project as previously approved; 5. The property owner of 1144 Chorro Street has actively pursued entitlement and building permit approvals for different uses at the property; 6. The PD Overlay encumbers seven (7) properties in downtown, not under common ownership, by referring to an expired project approval on the Zoning Map; and 7. Revocation of the PD Overlay would amend and clean up the Zoning Map by removing the reference to an expired project approval and its associated requirements (e.g., mitigation measures from the environmental review; deviations allowed by the PD overlay; conditions of approval, etc.). Revocation would provide clarity in applicable regulations of the affected properties and remove unnecessary restrictions on development thereof. SECTION 2. Environmental Determination. The project is exempt from environmental review under Section 15061(b)(3) (General Rule Exemption) of the California Environmental Quality Act (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 scope of this request is limited to an amendment on the zoning map and does not facilitate any development project, it would not have an effect on the environment. Additionally, the mitigation measures required as part of the PD Overlay adoption in 2020 were only applicable to the development proje ct for 1144 Chorro Street as proposed at the time. Should there be any development proposed on 1144 Chorro Street or any of the other affected properties, those projects would be evaluated on an individual basis for consistency and compliance with all applicable regulations in effect at that time, including environmental review. Page 195 of 357 Ordinance No. 1749 (2025 Series) Page 4 O ______ SECTION 3. Action. The City Council hereby adopts an ordinance to revoke the PD Overlay, related to a development project proposed at 1144 Chorro Street , and rezone the seven (7) associated properties from C-D-PD and C-D-H-PD to C-D and C-D-H, respectively, as shown in Exhibit A and incorporated herein. EXHIBIT A Proposed Zoning Map with the C-D and C-D-H Zones Page 196 of 357 Ordinance No. 1749 (2025 Series) Page 5 O _____ SECTION 4. A summary of this ordinance, together with the names of the 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 30 days after its final passage. INTRODUCED on the 19th day of August 2025, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 2nd day of September 2025, on the following vote: AYES: NOES: RECUSED: 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 197 of 357 Page 198 of 357