HomeMy WebLinkAbout1422 and 1480 Monterey Planning Commission Staff Report
PLANNING COMMISSION AGENDA REPORT
SUBJECT: REVIEW OF A NEW 86,180-SF TWO-FIVE STORY MIXED USE PROJECT,
CONSISTING OF 106 AFFORDABLE RESIDENTIAL UNITS, 4,336 SF OF
COMMERCIAL SPACE, AND A THREE-STORY PARKING GARAGE. THE PROJECT
INCLUDES VARIOUS EXCEPTIONS, CONCESSIONS, AND DEVELOPMENT
WAIVERS
PROJECT ADDRESS: 1422 & 1480 BY: Kyle Bell, Housing Coordinator
Monterey Street Phone Number: (805) 781-7524
Email: kbell@slocity.org
FILE NUMBER: ARCH-0020-2022 & FROM: Tyler Corey, Deputy Director
AFFH-0021-2022
RECOMMENDATION
Adopt the Draft Resolution (Attachment A) approving the development plan and
associated affordable housing incentive requests, based on findings and subject to
conditions of approval.
SITE DATA
Applicant
Representative
Zoning
General Plan
Site Area
Environmental
Status
HASLO
David Gibbs RRM
C-R & C-R-S (Commercial Retail with
a Special Considerations Overlay) &
R-2 (Medium Density Residential)
General Retail & Medium Density
Residential
1.42 acres
Categorically exempt from
environmental review under CEQA
Guidelines section 15332 (In-Fill
Development Projects).
1.0 SUMMARY
The applicant, Housing Authority San Luis Obispo (HASLO), has proposed a
development project consisting of two new five-story mixed-use structures (Building 1 –
45,510 square feet & Building 2 – 34,490 square feet), and two two-story triplexes (2,590
square feet each). The project includes 106 residential dwelling units dedicated to low-
income households (56 units dedicated to senior households), and 4,336 square feet of
commercial space, with a three-story parking garage. All existing structures will be
demolished to accommodate the proposed project and site improvements (Attachment B,
Project Plans).
Meeting Date: 11/16/2022
Item Number: 4a
Time Estimate: 90 Minutes
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
The applicant has proposed an alternative bicycle parking standard for the units dedicated
to senior housing at a rate of 0.5 per senior housing unit, where 1 space per unit would
otherwise be required1. The applicant has provided justification statements of the
proposed exceptions, waivers, and concessions requested as part of the project
description (Attachment C, Project Description).
In accordance with Zoning Regulations Section 17.140.040, the project includes a density
bonus of 65% to increase the density allowance of the property from 45.12 density units
to 74.5 density units. To qualify for the density bonus, the project must provide at least 13
units (28% of the base density allowance) dedicated to low-income households. The
proposed project includes 105 units to be dedicated to low-income households (plus 1
unit for the manager quarters for a total of 106 units).
The project is proposed as a 100% affordable housing project and includes three
affordable housing concession requests as permitted by Density Bonus Law and local
regulations2: 1) a maximum height extension to allow a 54-foot-tall structure where
normally limited to 45-feet; 2) a 5% parking reduction to reduce the required vehicle
parking spaces by 5 spaces, resulting in 95 parking spaces where 100 is typically
required; 3) an alternative bicycle parking rate of 0.5 spaces per bedroom for the 56 senior
housing units within the project, where one bicycle parking space per bedroom would
normally be required for senior housing projects.
The project also includes several waivers from development standards in accordance
with Density Bonus Law: 1) a waiver for the creek setback requirement to be reduced to
6 feet, where 20 feet is normally required (Attachment D, Biological Resource
Assessment); 2) waiver to a reduce the Edge Conditions setback for the parking garage
to a 3-foot setback, where 10 feet is normally required; and 3) waiver to provide vehicle
parking spaces within the front yard along Palm Street for the purposes of compliance
with requirements under the American Disabilities Act (ADA), resulting in a 7 foot front
yard setback for unenclosed parking spaces, where 20 feet is normally required. The
waivers are requested pursuant to the Density Bonus Law because full compliance with
these development standards would physically preclude the project from being built at the
requested density or with the incentives or concessions granted 3.
1 Zoning Regulations Section 17.70.070.D(2)(c). Alternative Compliance. Upon written request by the
applicant, the Director may approve alternative compliance from the provisions of this Section through an
approved Director’s Action, which may include, but is not limited to, a reduction or deviation in the number,
type, or location of the required bicycle parking, and may include a waiver of the requirement.
2 Zoning Regulations Section 17.140.070B.1: A reduction in site development standards or modification
of Title 17 requirements or architectural design requirements that exceeds the minimum building standards
approved by the California Building Standards Commission as provided in Part 2.5 (commencing with
Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a red uction in
setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise
be required that results in identifiable and actual cost reductions to provide for affordable housing costs.
3 Government Code Section 65915(e)(1). Density Bonus Law. In no case may a city… apply any
development standard that will have the effect of physically precluding the construction of a development …
at the densities or with the concessions or incentives permitted by this section.
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
2.0 PLANNING COMMISSION’S PURVIEW
The Planning Commission’s role is to review for consistency with the General Plan,
Zoning Regulations, Community Design Guidelines (CDG), Active Transportation Plan,
Sign Regulations, and applicable City development standards. The project provides a
100% affordable housing project, and is therefore subject to the Housing Accountability
Act, which limits the project to no more than five public hearings and limits the City’s ability
to deny the project or condition it in a manner to render the project infeasible for low-
income housing absent a finding of a specific, adverse impact or that the project is
contrary to specific state or federal law.4 The project includes a request for a density
bonus and is subject to the provisions and protections established under the Density
Bonus Law (Attachment E). Planning Commission (PC) review is required for projects
that include more than 49 residential units (ARCH-0020-2020). As noted above, the
proposed affordable housing incentive and waivers are also included for final
determination by the PC (AFFH-0021-2022).
3.0 PREVIOUS REVIEW
On October 10, 2022, the TC reviewed the project for consistency with the Tree Removal
Ordinance (Chapter 12.24) for the proposed removal of 54 trees from the site with a
replanting plan of 54 trees, resulting in a compensatory planting plan of 1:1 (TC Report
and Meeting Minutes). The TC recommended that the Planning Commission approve the
requested tree removals and compensatory replanting plan subject to the following
conditions: retain trees 14 & 34, provide 50% of the replated trees with a minimum size
of 36-inch box and the remaining 50% with a minimum size of 24 -inch box, and that 25%
of all new trees are of a minimum 10-feet in height at time of planting (vote 3-1-1-1). These
items and the applicant’s response to the recommendations are discussed further in
Section 5.5 of this report.
On October 17, 2022, the ARC reviewed the project for consistency with the CDG. The
ARC continued the item to a date uncertain with two recommendations for the applicant
to modify the project design for further consistency with the CDG, (4-0-2) (ARC Report
and Meeting Minutes).
The Community Development Director has determined that project will not be heard again
by the ARC and the two outstanding recommendations that were the basis of the
continuance at ARC will be considered by the PC. These items and the applicant’s
response to the recommendations are discussed further in Section 5.6 of this report. This
determination was made in accordance with the Housing Crisis Act5 based on the
maximum number of public hearings (5 hearings) for projects that are subject to the
Housing Accountability Act and comply with applicable, objective general plan and zoning
standards at the time the application is deemed complete (Attachment F, Housing Crisis
Act Memo).
4 Government Code Section 65589.5(d). Housing Accountability Act.
5 Government Code Section 65905.5. Housing Crisis Act.
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
4.0 PROJECT STATISTICS
Table 1 – Zoning Regulations - Project Statistics
Site Details Proposed Allowed/Required*
Density (C-R zone)
Density (R-2 zone)
Total Density
72.5
2
74.5 (65% Density Bonus)
42.12
3
45.12
Setbacks
Street Yard (C-R) California Street
Street Yard (C-R) Monterey Street
Side Yard (C-R)
Street Yard (R-2)
Side Yard (R-2)
Parking (R-2)
10 feet
8 feet
3 feet (waiver)
20 feet
8 feet
7 feet (waiver)
10 feet (street yard average)
0 feet
5 feet
20 feet
8 feet
20 feet
Creek Setback
Upper-story Creek Setback
6 feet (waiver)
6 feet (waiver)
20 feet
30 feet
Maximum Height (C-R)
Maximum Height (R-2)
54 feet (concession)
22.5 feet
45 feet
35 feet
Floor Area Ratio (C-R) 1.9 3.0
Max Lot Coverage (C-R)
Max Lot Coverage (R-2)
59%
26%
100%
50%
Total Sign Area (per tenant)
Number of Signs (C-R zone)
Wall Sign (2)
Raised Channel Letters Sign (6)
Monument Sign (1)
321 SF Total (3 tenants)
8 signs (2 for each tenant)
27 SF
48 SF
12 SF (4 feet tall)
600 SF Total (3 tenants)
12 signs (4 for each tenant)
100 SF
100 SF
12 SF (4 feet tall)
Tree Removals 54 trees (1:1) (reviewed by
the Tree Committee)
54 trees (subject to the
authority of Tree Committee)
Affordable Housing 105 low-income units 13 low-income unit
Public Art On-site In-lieu or on-site
Vehicle and Bicycle Parking
Number of Vehicle Spaces
EV Spaces
95 (concession)
10 (EV ready)
26 (EV capable)
100
10 (EV ready)
26 (EV capable)
Bicycle Spaces
Short-term
Long-term
5
78 (concession)
5
108
Motorcycle Parking 7 6
*2019 Zoning Regulations - Development Standards
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
5.0 PROJECT ANALYSIS
The proposed project improvements must conform to the standards and limitations of the
Zoning Regulations and Engineering Standards and be consistent with the applicable
CDG. Staff has evaluated the project’s consistency with relevant requirements and has
found it to be in substantial compliance, as discussed in this analysis.
5.1 Consistency with the General Plan
The Housing and Land Use Elements encourage mixed -use projects where they can be
found to be compatible with existing and potential future development. The Land Use
Element encourages compatible mixed uses in commercial districts (LUE Policy 3.8.5)
and specifically discusses residential and commercial mixed use (LUE Policy 2.3.6)6. The
project is consistent with LUE policies pertaining to affordable housing and senior housing
through density bonuses7.
The Housing Element provides policies and programs that speak specifically to
supporting affordable housing projects and increasing density bonuses above state
allowances where appropriate. Granting a density bonus in excess of State allowances
and allowing a reduction in site development standards for parking and maximum building
height as well as the waivers from the site development standards for the edge conditions
setback and creek setback are consistent with both state law and the Housing Element
policies to provide additional housing for low-income households.
6 Land Use Element Policy 2.3.6. The City shall encourage mixed use projects, where appropriate and
compatible with existing and planned development on the site and with adjacent and nearby properties.
The City shall support the location of mixed use projects and community and neighborhoo d commercial
centers near major activity nodes and transportation corridors / transit opportunities where appropriate.
7 Land Use Element Policy 2.4.2. The City shall approve a density bonus for projects that: (B) Include
affordable housing for seniors or lower income households consistent with the requirements of State Law.
Figure 1: Birds-eye rendering of project design from the California/Monterey intersection.
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
The Circulation Element describes how transportation will be provided in the community.
The project includes features that support multi-modal transportation, consistent with the
following policies: Policy 3.1.7 (Transit Service Access) states that new development
should be designed to facilitate access to transit service; Policy 4.1.1 (Bicycle Use) states
that the City shall expand the bicycle network and provide end of trip facilities to
encourage bicycle use and to make bicycling safe, convenient and enjoyable; and Policy
5.1.2 (Sidewalks and Paths) states that the City should complete a continuous pedestrian
network connecting residential areas with major activity centers. The project includes the
addition of a protected bike lane in the westbound direction along Monterey Street as
identified in the City’s Active Transportation Plan. The project has been designed in
accordance with the City’s Active Transportation Plan and includes reconstruction of an
8-foot-wide sidewalk, installation of a 6-foot-wide sidewalk-level protected bike lane, a 5-
foot-wide parkway, curb/gutter, a minimum 8’wide pullout for bus stop and
commercial/passenger loading, and installation of a new transit shelter.
In accordance with the City’s Housing and Homelessness Major City Goal cited above
and General Plan policies and programs, the project will provide a mix of housing units
that include deed-restricted affordable units and senior housing. The project’s
redevelopment and in-fill development components support LUE Policy 2.2.7 because
the project provides for an adaptive reuse of the property that contributes positively to the
existing neighborhood by providing housing adjacent to a significant employment area . In
accordance with LUE Policy 1.5, this project helps reduce the gap between housing
demand and supply by adding residential units, all of which are affordable housing units.
5.2 Consistency with the Zoning Regulations
In accordance with Table 2-1 of the Zoning Regulations, mixed-use development projects
are allowed by right within the C-R zone, and the proposed triplexes are allowed by right
in the R-2 zones. Section 17.70.130 (Mixed-Use Development) identifies specific
development standards and requirements for mixed-use projects, and Section 17.70.050
(Edge Conditions) provides specific development standards for development of
commercial properties adjacent to R-2 zoning districts. The project design complies with
the objective design criteria and performance standards for Mixed-Use Development and
Edge Conditions requirements, except as otherwise requested as waivers or concessions
in accordance with the provisions of Density Bonus Law. The project is consistent with
the provisions and requirements for lot coverage, floor area ratio, building setbacks, and
parking requirements for the C-R and R-2 zones, respectfully (see Section 4.0 Project
Statistics).
Mixed-Use Development: Section 17.70.130 (Mixed Use Development) provides
standards for the design of mixed-use projects to consider potential impacts on adjacent
properties and be compatible with the adjacent and surrounding residential
neighborhoods. Mixed-use projects must be designed to achieve specific objectives
including design criteria, site layout, pedestrian access and performance stan dards. The
project has been designed to provide a physical separation between the residential and
commercial uses and associated activity areas by placing residential uses above
commercial uses, thus ensuring that the residential units are of a residential character by
providing privacy between the residential and commercial portions of the site .
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
The project minimizes potential impacts to and from adjacent properties by locating
commercial activities and open space areas towards Monterey Street and residential uses
above the commercial towards the center of the property to provide adequate separation
from the existing single-family residences in the adjacent R-2 zoning district. The vicinity
is developed with a mix of commercial and residential uses that is conducive to a mixed-
use project at this location. The project’s proposed common area is located along
Monterey Street, which is oriented toward the commercial frontage, minimizing potential
adverse impacts from non-residential project noise to the adjacent residential
neighborhood.
Edge Conditions: Section 17.70.050 (Edge Conditions) is intended to provide a buffer
between low-density residential zones or open space areas and zones that permit
development of higher intensity. These regulations require specific development
standards along the property line that transitions from a lower intensity zoning, such as
the adjacent R-2 zoning to the north of the subject property. The Edge Conditions
regulations stipulate that balconies are prohibited above the first floor on the building side
facing the R-2 zone. The standards also require that window placement on the proposed
building be offset horizontally by 12 inches from any windows located on buildings on the
adjacent properties in the R-2 zone. The intention of these restrictions is to preserve
privacy for adjacent lower-intensity developments.
The project is requesting a development standard waiver pursuant to Density Bonus Law
to allow a 3-foot setback for the parking garage, where a 10 -foot setback is normally
required for structures facing adjacent properties that are zoned R-2. However, the
parking garage is cut into the natural slope of the property and is onl y exposed up to 10
feet above the existing natural grade at its highest point (see Figure 2). The requested
development standard waiver is discussed in more detail in Section 5.4 below.
Figure 2: Section Cuts demonstrating concession from Edge Conditions setback.
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
Creek Setback: Section 17.70.030 (Creek Setbacks) require a 20-foot setback from the
top of bank for new structures. The proposed project is requesting a setback of
approximately 6 feet for Building 2 from the top of bank, where 20 is normally required.
The applicant is requesting the reduced creek setback as a development waiver by
providing affordable housing units and requesting a 65% density bonus in compliance
with the Housing Accountability Act and Density Bonus Law (as discussed in more detail
under Section 5.4 Affordable Housing Alternative Incentives). A Biological Resource
Report has been provided (Attachment D) that concluded that the setback exception will
not impact any of the native biological resources within the creek setback area as the
trees and vegetation removed from the site within the creek setback area are non-native
riparian woodland and that there were no suitable habitats for any special status species
that were identified on or near the project site.
The City’s creek setback regulations provide provisions for setback exceptions that are
consistent with State and Federal Law, and the development waiver request does not
result in any specific adverse impact to the public health, safety, or physical environment.
The site development cannot be feasibly accomplished with a redesign of the project
because the Density Bonus Law mandates that incentives and waivers from development
standards shall not be denied in which would result in a reduction of the number of
residential units proposed within the project8. Requiring compliance with the full setback
requirement would result in design constraints that would result in a reduction of the
number of units requested which would violate Government Code Section 65915.
Special Considerations (S) Overlay: A portion of the project site is located within the S-
Overlay zone9, along the corner of California and Monterey Street at 1480 Monterey. The
S-Overlay was adopted by the City Council in 1996 through Ordinance No. 1314 (1996
Series). The purpose of the S-Overlay was intended to ensure future uses are reviewed
with a focus on noise, traffic, and compatibility with surroundin g uses. A noise study has
been prepared 45dB Acoustics, LLC, which identified that the project is designed in
accordance with the noise thresholds allowances for a mixed -use development in the C-
R zone as well as adjacent to the railroad (Attachment G, Noise Study). The project has
been reviewed in accordance with the Institute of Transportation Engineers (ITE) Trip
Generation Manual, the traffic generation of the proposed project versus existing
conditions is a negligible difference, as further discussed in Section 5.3. The ARC
reviewed the project and provided two recommendations for the applicant to modify the
project design for further consistency with the CDGs that address neighborhood
compatibility, as further discussed in Section 5.6.
8 Government Code Section 65915(e)(1). In no case may a city, county, or city and county apply any
development standard that will have the effect of physically precluding the construction of a development
meeting the criteria of subdivision (b) at the densities or with the concessions or incen tives permitted by
this section.
9 Zoning Regulations Chapter 17.60: Special Considerations (S) Overlay Zone. The purpose of the S-
Overlay zone is, in combination with any zone, to require additional discretionary review before particular
uses may be established or development initiated, as identified in the adopting ordinance or plan for each
individual S-Overlay zone.
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
Parking: Zoning Regulations Section 17.140.040.K stipulates that housing developments
occupied exclusively by low-income households, as defined by the State, may provide
one car and one bicycle space per dwelling unit, and 0.5 spaces per bedroom for senior
housing units. The project includes 56 dwelling units for senior living, which would require
only 28 parking spaces; the remaining 50 low-income units require only one space per
dwelling unit (2 spaces are required for the caretakers’ quarters) resulting in a total of 79
parking spaces for all residential dwelling units. The commercial space has been
designed to provide parking at a ratio of one space per 100 square feet for one of the
commercial suites, and one space per 300 square feet for the remaining two commercial
suites, resulting in a parking requirement of 21 spaces. The total parking required for the
project is 100 parking spaces, where only 95 parking spaces are proposed on-site. The
parking reduction of 5% has been requested as a concession for providing affordable
housing in accordance with Density Bonus Law, see Section 5.4.
The ITE Parking Demand Manual identifies that the peak parking demand of the project
would not exceed 79 parking spaces, where the project provides 95 parking spaces.
Therefore, the proposed parking reduction of 5% is adequate to serve all uses on-site
because the peak parking demand of all uses on site will not coincide 10.
5.3 Consistency with the Active Transportation Plan
In accordance with the California Governor’s Office of Planning and Research (OPR),
affordable housing within urban areas reduce vehicle miles traveled throughout the
community due to the City’s current jobs-housing imbalance, resulting in reduced traffic
throughout the City and County. The project is located in close proximity to the City’s
bicycle and pedestrian network and within walking distance of nine bus stops, which
provide ease of access to alternative modes of transportation, further reducing the
dependency of single occupant vehicles within the project.
In accordance with the ITE Trip Generation Manual, the project’s trip generation during
peak hours is not anticipated to exceed 100 peak hour trips, which is below the threshold
where a formal Transportation Impact Study would be required. As shown in Table 2, the
proposed project is anticipated to increase trip generation during peak AM hours and only
slightly increase trips during peak PM hours.
Table 2 – Trip Generation Comparison
Peak AM Trips Peak PM Trips
Existing Conditions 30 64
Proposed Project 52 70
10 Zoning Regulations Section 17.72.050.C.1. Criteria for Approval. The review authority may only
approve a request for reduced parking if it finds that: (a) Special conditions, including but not limited to, the
nature of the proposed operation; proximity to frequent transit service; proximity to a general market,
transportation characteristics of persons residing, working, or visiting the site… (b) The use will adequately
be served by the proposed onsite parking; and (c) Parking demand generated by the project will not exceed
the capacity of or have a detrimental impact on the supply of on-street parking in the surrounding area.
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
While the peak AM trips for the proposed project are higher than existing conditions, the
design of the project provides separate access to residential parking from Palm Street
than commercial parking from Monterey Street, resulting in onl y 23 peak AM trips
generated from Palm Street, and 29 peak AM trips generated from Monterey Street.
Furthermore, since the proposed project generates fewer than 100 peak hour auto trips,
a map-based Vehicle Miles Traveled (VMT) analysis can be performed. Based on the
City’s Residential VMT Maps, the project is located within a low VMT generating zone.
The City is currently conducting a study to identify safety improvements for the
California/Monterey intersection to address a history of north-south bicycle right-hook
collisions. Because this study is already in progress, the development will not be required
to duplicate this analysis; however, the project is conditioned to participate in a fair share
contribution towards the improvements recommended in the City’s study (Condition No.
47).
On-Site Transportation Improvements. The project would be required to contribute its fair
share toward transportation improvements envisioned in the General Plan Circulation
Element through participation in the City’s Transportation Impact Fee program (Condition
No. 46). Transportation improvements funded or constructed by this project include
establishing building setbacks along California Boulevard frontage to accommodate
future widening for a dedicated southbound right-turn lane, and a southbound bike lane
channelization (Condition No. 47). Improvement plans for the project will ensure that
proposed street trees, landscaping and other vertical elements remain clear of applicable
sight triangles at project driveways and intersections per City Engineering Standards
(Condition No. 52). Short-term and long-term bicycle parking will be provided with
applicable design policies per the City’s Active Transportation Plan, including a
requirement that the long-term bicycle parking storage rooms include accommodations
for larger cargo bikes, electrical connections for e-bike charging, and no more than 50%
vertical racks (Condition No. 49).
Off-Site Transportation Improvements. In addition to the transportation improvements
included in the project, the project applicant will be required to provide traffic signal
modifications to install a “right turn yield to bicycle” illuminated blank-out signs in the
northbound and southbound California Boulevard intersection approaches (Condition No.
47). The project will reconstruct the California Boulevard frontage to current City
Engineering Standards. Public improvement plans will include reconstruction of 10 -foot-
wide sidewalks, reconstruction of the ADA curb ramp at the northwest corner of
California/Monterey Street, installation of Accessible Pedestrian Signal (APS) audible
pedestrian push buttons at California/Monterey Street intersection, and installation of
street trees (Condition No. 50). The project will reconstruct the Monterey Street frontage
to current City Engineering Standards, including the addition of a protected bike lane in
the westbound direction as identified in the City’s Active Transportation Plan. The public
improvement plans will include reconstruction of an 8-foot-wide sidewalk, installation of a
6-foot-wide sidewalk-level protected bike lane, a 5-foot-wide parkway, a minimum 8-foot-
wide pullout for bus stop and commercial/passenger loading, and installation of a new
transit shelter.
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
The project will include the extension of the westbound protected bike lane along
Monterey Street at the street level from the western project limits to Pepper Street,
including pavement markings, signage and a concrete median separating the bikeway
from motor vehicle traffic (Condition No. 51). The project will also include installation of
advance bicycle detection loops in each direction, and potential upgrades to the traffic
signal cabinet/controller to facilitate intended operations of blank-out signs, public street
lighting and all associated facilities including but not limited to conduits, sidewalk vaults,
fusing, wiring and luminaires along the project frontages consistent with City Engineering
Standards (Condition No. 48).
5.4 Consistency with Affordable Housing Requirements
The City’s 2021-2023 Financial Plan identifies Housing and Homelessness as a Major
City Goal. The City’s Housing Element includes numerous policies and programs that
support incentives, such as density bonuses, to provide housing for low, very low and
extremely low-income households. The Department of Housing and Urban
Development’s Housing Accountability Act and Density Bonus Law provide protections
for housing development projects that include affordable housing. To implement the
State’s Density Bonus Statutes (Gov. Code Section 65915-65918), the City’s Zoning
Regulations provide three types of incentives for projects that provide affordable housing:
a Density Bonus (Section 17.140.040.A), an Alternative Parking Requirement (Section
17.140.040.K), and Additional Incentives (Section 17.140.070.A) that may be requested
by an applicant. In accordance with Density Bonus Law, 100% affordable housing
projects are eligible for up to 80% density bonuses by right, whereas the proposed project
is only requesting a 65% density bonus, which is below the state allowances.
Incentive Requests: Reduction to Site Development Standards: Zoning Regulations
Section 17.140.070.A states that three incentives or concessions shall be granted for
housing developments that include at least 30% of the total units dedicated for low-
income households. The proposed project provides 100% of the total units to be
dedicated to low-income households, and therefore the applicant is entitled to three
incentives. One of the alternative incentive examples called out in Chapter 17.140 is the
reduction in site development standards11 specifically identifies building height, setbacks,
and parking requirements as appropriate concessions. Further, Government Code
Section 65915(d)(1) prevent an agency from denying the density bonus or the incentive
or concession unless the agency can make a finding based on substantial evidence that
the density units, the incentive or concession or reduction in a development standard
either: 1) causes a “specific, adverse impact” upon the public health, safety, or the
physical environment, and for which there is no feasible method to satisfactorily mitigate
11 Zoning Regulations Section 17.140.070. Alternative or Additional Incentives (B.1): A reduction in
site development standards or modification of Title 17 requirements or architectural design requi rements
that exceeds the minimum building standards approved by the California Building Standards Commission
as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code,
including, but not limited to, a reduction in setback and square footage requirements and in the ratio of
vehicular parking spaces that would otherwise be required that results in identifia ble and actual cost
reductions to provide for affordable housing costs.
Item 4a
ARCH-0020-2022 & AFFH-0021-2022 – 1422 & 1480 Monterey Street
Planning Commission Report – November 16, 2022
or avoid the specific adverse impact; 2) does not result in identifiable and actual cost
reductions; or 3) would be contrary to state or federal law12.
Maximum Height Concession #1. The applicant is requesting a concession to reduce site
development standards for the maximum height of the C-R zone, to allow for a building
height of 54 feet, where normally limited to 45 feet . The proposed building height of 54
feet is appropriate for this site because the project grades into the slope of the property
and orients the height, mass, and scale of the project toward the center of the property,
with upper story step backs along the street frontage. The project has been designed to
minimize any potential impacts to the adjacent residential neighborhood . The project is
consistent with the design objectives within the CDG because the development is
designed in a manner that does not deprive reasonable solar access to adjacent
properties; by positioning the majority of the building mass along the street frontage and
away from the adjacent residential neighborhood, which incorporates vertical and
horizontal wall plan offsets that provide high-quality and aesthetically pleasing
architectural design (CDG 5.4).
Parking Requirements Concession #2. The applicant is also requesting a concession to
reduce parking requirements by 5%, resulting in 95 vehicle parking spaces, where 100
parking spaces would normally be required. I n accordance with ITE, the peak parking
demand for the project results in a maximum of 79 parking spaces, where the project
provides 95 parking spaces on site. The project qualifies for the parking reduction in
accordance with Zoning Regulations Section 17.72.050.C and ITE Parking Demand,
where the peak hours of use will not overlap or coincide to the degree that peak demand
for parking spaces from all uses or project will be greater than the total supply of parking
spaces.
Bicycle Parking Requirements Concession #3. The applicant has is requesting a
concession to reduce site development standards for bicycle parking requirements to
provide for an alternative rate of 0.5 bicycle parking spaces per bedroom for the senior
housing units. In accordance with Section 17.140.040.K.d.2, one bicycle parking space
is required for each residential unit within the project, resulting in 106 bicycle parking
spaces required. The applicant is requesting an alternative bicycle parking requirement
for the 56 senior housing units within the project, since this type of housing creates a
unique demand of bicycle parking availability that is not consistent with the requirements
of more traditional housing developments. Section 17.140.040.K.d specifies that vehicle
parking for senior housing shall be 0.5 spaces per bedroom, the applicant would like to
apply the same ratio for bicycle parking for the senior housing units (0.5 spaces per
bedroom), resulting in 28 bicycle parking spaces for the senior housing units. Section
17.72.070.D (Alternative Compliance) states that the PC may apply alternative bicycle
parking requirements for projects which cannot be classified into the one of the land use
classifications listed in Table 3-6 (Required Bicycle Parking). Since the Zoning
Regulations and Density Bonus Law provide a reduced vehicle parking requirement for
12 Government Code § 65589.5(j)(1). Definition of ‘Specific, Adverse Impact’: Significant, quantifiable,
direct, and unavoidable impact, based on objective, identified written public he alth or safety standards,
policies, or conditions as they existed on the date the application was deemed complete
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senior housing units, it would be consistent to allow concession for bicycle parking at a
matching rate of 0.5 per bedroom (Condition No. 9).
Waiver of Site Development Standards: In addition to those standard incentives, pursuant
to Density Bonus Law, an applicant may also request a waiver or reduction of
development standards that will have th e effect of physically precluding the construction
of a development standard for a project providing affordable housing at the density or with
the incentives and concessions permitted under Density Bonus Law (Govt. Code Section
65915(e)(1)). As provided in Density Bonus Law statutes, the City must grant an
applicant’s requested waiver of development standards, unless doing so would result in
a specific adverse impact upon health, safety, or the physical environment or run contrary
to state or federal law. Unlike incentives and concessions granted pursuant to Density
Bonus Law, there is no limit to the amount of waivers a qualifying project may request.
Edge Condition Setback Waiver #1. The applicant is requesting a waiver to reduce the
site development standard Edge Conditions setback to 3-feet, where 10 feet is normally
required for the proposed parking structure. The proposed parking structure is submerged
into the natural slope of the property, and the structure will only appea r to have a
maximum height of 2-10 feet from the existing grade when viewed from the properties in
the R-2 zoning district, as shown in Figure 2. This waiver is requested to provide logical
site development of the property to accommodate the requested 65% density bonus while
achieving a 95% compliance with parking requirements. The requested waiver does not
result in any identified specific, adverse impact upon health, safety, or the physical
environment, and requiring full compliance with the 10-foot setback requirement would
result in either a decrease of the density of the project or substantial reduction in the
number of available on-site parking spaces. The request for this waiver is consistent with
the intent and strict requirements of the Density Bonus Law.
Creek Setback Waiver #2. The applicant is requesting a waiver to allow a structure within
the creek setback area with a distance of 6 feet from the top of bank for Building 2, where
20 is normally required and an additional 10-foot step back for structures three-stories
and over. The stated purpose of this waiver is to allow for the physical construction of the
additional density units associated with the density bonus request. In order to deny this
request, the City would be required to make the statutory findings based on the standards
discussed and defined above. Under state law, to deny this requested waiver, the City
must find that application of the creek setback standard would not physically preclude
construction of the project at the density afforded or that granting such waiver would result
in a specific adverse impact on the public health, safety, or the physical environment that
is directly caused by the request, and determine that there is no feasible way t o
satisfactorily mitigate it or find an alternative. The Biological Resource Report that was
provided with the application concluded that the improvements to the project site within
the creek setback area would not impact any of the native biological resou rces and that
there is no suitable habitat for any special status species on or near the project site.
Furthermore, creek setback reductions are a provision of the City’s local ordinance, which
is consistent with State and Federal Law, and the waiver request does not result in any
specific adverse impact to the public health, safety, or physical environment.
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Front Yard Setback Waiver #3. The project includes a waiver from the front yard setback
requirements for unenclosed parking to provide a 7 -foot setback, where 20 feet is
normally required. This waiver is requested to provide the required ADA parking stalls for
the proposed triplexes within the R-2 zoning district. California Building Code requires
affordable housing structures that provide ground floor units shall provide an ADA
accessible unit. The ground floor units within the triplexes are provide as ADA compliant,
and the parking stalls within the front yard are the required ADA parking for these units.
This waiver is necessary to comply with Californ ia Building Code requirements. The
proposed waiver does not result in any specific adverse impact to the public health, safety,
or physical environment. Staff recommends that the ADA parking stalls provided within
the front yard are designed with permeable decorative pavers (Condition No. 9).
5.5 Tree Committee Directional Items
The TC recommended three directional items to be reviewed and evaluated by the
Planning Commission prior to taking final action on the project. Staff has incorporated the
following recommendations as conditions of the project (Attachment A) in response to the
directional items:
TC Directional Item #1: Retain Trees 14 & 34.
Response: The applicant has agreed to retain tree 14, however, tree 34 is in very close
proximity to an existing structure, and demolition of the site may result in challenges to
preserve tree 34. Staff recommends Condition No. 37 which requires the preservation
and improvements to tree 14, and to retain tree 34 if possible, in the event tree 34 is
unable to be retained, the applicant shall provide a replacement planting at a ratio of 2:1
at a 36-inch box minimum.
TC Directional Item #2: Provide 50% of the replated trees with a minimum size of 36-inch
box and the remaining 50% with a minimum size of 24 -inch box.
Response: The applicant has agreed to provide a replanting plan of 50% 36 -inch box
trees, and 50% 24-inch box trees. Staff recommends Condition No. 38 which requires the
replanting plan to include 50% of the replated trees with a minimum size of 36 -inch box
and the remaining 50% with a minimum size of 24-inch box.
TC Directional Item #3: 25% of all new trees are of a minimum 10-feet in height at time of
planting.
Response: The applicant has agreed to amend the replanting plan to provide 25% of the
trees of a minimum height of 10-feet. Staff recommends Condition No. 39 which requires
the replanting plan to include 25% of all tree plantings to be of a minimum height of 10-
feet.
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5.6 Architectural Review Commission Directional Items
On a vote of 4-0, the ARC voted to continue the project to a date uncertain with two
recommendations for the applicant to modify the project design for further consistency
with the CDG. In order to ensure compliance with the Housing Crisis Act, the Community
Development Director has determined that the project will not be heard again by the ARC
and the two outstanding recommendations that were the basis of the continuance at ARC
will be considered by the PC. The applicant has modified the project plans (Attachment
C) in response to the ARC directional items:
ARC Directional Item #1: Reduce the amount of vehicle parking, to provide additional
open space opportunities.
Response: The applicant has modified the project to reduce on-site parking by
approximately 10% (11 parking spaces). The project has been modifie d to include a
concession from the parking requirements to accommodate a 5% parking reduction to
reduce the parking to 95 parking spaces, where 100 parking spaces would normally be
required based on the updated design. The project also modified the commerc ial suite
reserved for the restaurant use, to further reduce the amount of parking required for the
project. The parking reduction is requested as a concession in accordance with Density
Bonus Law, as full compliance with parking requirements would incur a dditional costs on
the affordable development.
The applicant has updated the plans to demonstrate the ratio of open space areas per
unit of the project (Attachment C, Project Plans Sheet T1). Building 1 provides 2,750
square feet of private decks, 1,750 square feet of common private open space, and 1,160
square feet public plaza, which results in an average of 128.5 square feet per unit.
Building 2, which is dedicated for senior living, provides a 5,950 square foot public plaza,
resulting in 106 square feet of open space per unit. In accordance with the City’s Objective
Design Standards13 the City’s standard open space requirement in the C -R zone is 50
square feet of common open space per unit (there is no requirement for private open
space). Although the project is not susceptible to the Objective Design Standards, the
project has been designed to exceed the standard requirements for open space areas.
ARC Directional Item #2: Modify the massing of the corner element of Building 2 along
the intersection of California and Monterey Streets to provide greater relief along the
street façade.
13 Zoning Regulations Section 17.69.020.E.2 Common and Private Spaces. Residential projects within
the O, C-N, C-T C-R, C-C, C-S, and M zones shall provide a minimum of fifty (50) square feet per unit to
common space. Common space is recreation space provided inside or outside a residential building for the
use of all the residents for recreation or social purposes and is readily accessible by al l the residents. To
qualify as common space, individual spaces must have a minimum dimension in every direction of ten (10)
feet.
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Response: The applicant has modified the project design to reduce the mass of the 5th
floor of the structure by relocating two of the residential units to the ground floor of the
duplexes, which are now triplexes. The applicant also lowered the scale of the brick
façade along California Boulevard to further reduce the mass and perceived scale of the
project from the street (Figure 3).
5.7 Consistency with the Sign Regulations
The Sign Regulations are intended to protect and enhance the character of the
community against visual blight and the proliferation of signs, which can seriously detract
from the pleasure of observing the natural scenic beauty of San Luis Obispo. Signs have
an important design component and must be architecturally compatible with the character
of surrounding development. It is the intent of these regulations to regulate the time, place
and manner under which signs are permitted, and not the content of signa ge. Content
shall not be used as a basis for determining whether or not a proposed sign may be
permitted.
The proposed monument sign is consistent with the intent and purpose of the Sign
Regulations, the sign is of similar size as other properties in the vicinity with the same
zoning and provides for a superior design that does not result in visual clutter on the
property. All proposed signage complies with the requirements of the Sign Regulations
for the C-R zone. No signage is proposed within the R-2 zone.
6.0 ENVIRONMENTAL REVIEW
The project is categorically exempt from the provisions of the California Environmental
Quality Act (CEQA) because it consists of the development of the project site consistent
with policies and standards applicable to development within the commercial zones, on a
site less than five acres in size, with no value as habitat for endangered, rare, or
threatened species, as described in State CEQA Guidelines Section 15332 (Infill
Development). The site is within City limits and is served by City utilities and public
services. Based on the project existing topography, size, and design, approval of the
project will not result in any significant effects related to traffic, noise, air quality, or water
quality.
Figure 3: California/Monterey Intersection Rendering, modified design (left), previous design (right).
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7.0 OTHER DEPARTMENT COMMENTS
The project has been reviewed by various City departments and divisions including
Planning, Engineering, Transportation, Building, City Arborist, Natural Resources,
Utilities, and Fire. Staff has not identified any unusual site conditions or circumsta nces
that would require special conditions other than those listed in this report. Other
comments have been incorporated into the draft resolution as conditions of approval.
8.0 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,
Community Design Guidelines, Zoning Regulations or other policy documents.
Should the PC want to pursue this alternative, Staff recommends that the specific
findings under Government Code § 65915(d)(1)(B) and (d)(3) (Density Bonus Law)
are adequately addressed, as well as the findings required by Government Code
§ 65589.5(d) (Housing Accountability Act).
9.0 ATTACHMENTS
A. Draft Resolution
B. Project Description
C. Project Plans
D. Biological Resource Assessment
E. Housing Accountability Act & Density Bonus Law Summary Memo
F. Housing Crisis Act Memo
G. Noise Study