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HomeMy WebLinkAbout01/05/1999, 1 - ENVIRONMENTAL DETERMINATION, ANNEXATION, AND ZONING FOR LAND IN THE NORTHWEST PART OF THE MARGARITA AREA (ER, ANNX, R 175-98)council. "``dn°� Jan. 5, 1999 j acEnaa aEpout C I T Y OF S A N L U I S O B I S P O FROM: Arnold B. Jon�_as�,C�,ommunity Development Director /j, Prepared By: Glen Matteson, A"s"sociate Planner '11 SUBJECT: Environmental determination, annexation, and zoning for land in the northwest part of the Margarita Area (ER, ANNX, R 175 -98) CAO RECOMMENDATION 1. Adopt a resolution to approve a Negative Declaration of Environmental Impact (Attachment #1). 2. Adopt a resolution recommending that the Local Agency Formation Commission approve annexation of about 130 acres in the northwest part of the Margarita Area (Attachment #2). 3. Introduce an ordinance to prezone the annexation area Conservation/Open Space with minimum parcel sizes that would prevent subdivision (Attachment #3). 4. Approve, and authorize the Mayor to sign, pre- annexation agreements with the land owners (Attachment #5). 5. Direct staff to work with the County to prepare an agreement for exchange of property taxes that recognizes the eventual residential use of the property. DISCUSSION Situation & Evaluation The City Council initiated annexation of the whole Margarita Area in 1993. Two of the five major landowners in the Margarita Area, John King and Richard DeBlauw, have asked the City to complete the annexation of their properties (map following Attachment #2). On August 18, 1998, the City Council was asked if it would be appropriate for part of the Margarita Area to be annexed ahead of the areawide annexation. The Council determined in would be. For now, the three other major owners are waiting for finther information on development costs and allowed development capacities before proceeding with annexation. The subject property is within the Margarita Area, a residential expansion area that is identified by the City's General Plan. The requested action is to bring the land inside the city limits, making it subject to City land -use regulations and eligible for City utilities and services. No change of use or development is proposed as part of this action. The General Plan allows land in the Margarita Area to be annexed before the specific plan is adopted. Under General Plan policy, development of the subject property cannot begin until a specific plan is adopted. Development can proceed only if adequate resources are available. The specific plan will prescribe land uses, development standards, streets, parks and other public facilities, phasing, and financing of public facilities in more detail than the General Plan. Council Agenda Report - Northwest Margarita Area Annexation Page 2 Having the land annexed may give prospective lenders and investors more assurance in fronting some of the pre- development costs, and could save some time in processing subdivision and architectural -review applications once the specific plan is adopted. The City is preparing the Margarita Area Specific Plan for the subject property and neighboring land to the south and east. The City Council has approved a draft of the specific plan, to serve as the project description for an environmental impact report (EIR). The EIR is being written in conjunction with work on the Airport Area Specific Plan, which covers land south of the Margarita Area. There will be several hearings before the Planning Commission and the City Council before the EIR is certified and the specific plan is adopted. Once the Specific Plan is adopted, final zoning will be approved and phased subdivision and development of the area may proceed, subject to adequate services being available. Under the draft specific plan, the subject property will eventually accommodate about 320 dwellings out of a total 1,100 dwellings in the specific plan area. The hills and creek corridors would be dedicated as open space, and streets and utilities would be extended into the area in accordance with the specific plan. Data Summary Owners and applicants: King Ventures (John King) and Sierra Gardens/DeBlauw Construction (Richard DeBlauw) Representative: Dave Watson City Zoning: currently outside City zoning jurisdiction; C /OS -100 and C /OS -30 proposed City's General Plan: Open Space, Residential Neighborhood County's S.L.O. Area Plan: Agriculture; Residential Single Family Environmental determination: On October 8, 1998, the Community Development Director approved for public review a proposed negative declaration of environmental impact. No public comments have been received. The final determination is to be made by the City Council. Action Deadline: This legislative action is not subject to State Permit Streamlining Act time limits. Site Description The approximately 130 -acre site consists of rocky hills and alluvial grazing land, cut by several seasonal creeks. High - voltage electrical transmission lines run through the DeBlauw property. To the north is hillside open space dedicated as part of the Stoneridge project. Mobile home parks and houses are to the west. Land to the east and south, within the Margarita planning area, is alluvial grazing land with a few ranch houses. Project DescriQtion As noted above, annexation only makes the land subject to City land -use rules and eligible for City services. Subdivision and development will not proceed until the City has adopted the Margarita Area Specific Plan. The General Plan calls for Conservation/Open Space zoning, which does not allow any substantial development, until the specific plan is adopted. W-011 Council Agenda Report - Northwest Margarita Area Annexation Page 3 Pre- annexation Agreements The City and the owners of land to be annexed typically sign pre - annexation agreements covering the amount and timing of certain impact fees, dedications, and public improvements. The agreements are intended to assure that all parties, including future land owners, know what is expected in connection with the annexation. Draft pre - annexation agreements are attached. They are patterned after agreements which have been used for the Airport Area "interim" annexations. The owners' representative has said the owners will accept the draft agreements, but signatures had not been obtained when this report was written. ADVISORY BODY REVIEW At its November 18, 1998, public hearing the Planning Commission voted-six to none (one Commissioner stepped down due to a conflict of interest) to recommend approval of the Negative Declaration, the annexation, and zoning of C /OS -100 and C /OS -30. The owners' representative spoke in favor of the request. Two neighbors of the subject area and one city resident speaking on behalf of a neighbor expressed concerns about the eventual development of the area. Concerns included allowed residential density, drainage problems, traffic volume, open space protection, and views of open space areas. FISCAL IMPACT This annexation is expected to have no fiscal impact initially. As the Margarita Area is developed, the City will incur additional costs and revenues. Fiscal impact studies for the 1994 General Plan update and for the Airport Area annexation, focused on operating costs and revenues, concluded that annexing land for both residential and nonresidential development would allow the City to maintain fiscal health. The forthcoming specific plans will include information on capital costs and financing. State law requires the City and the County to agree on division of property taxes from the annexed territory. Concerning this tax exchange, a strict interpretation of the general countywide agreement reached a few years ago would result in no tax being passed through to the City following annexation, due to the Conservation/Open Space zoning. However, the part of this property to be developed will be residential. Under the general agreement, the post - annexation tax increment for residential uses is to be shared, with 2/3 going to the County and 1/3 to the City. Staff has preliminarily discussed this issue with County staff, and has agreed that the tax exchange resolution for this territory must addresses this special circumstance. 1 -3 Council Agenda Report - Northwest Margarita Area Annexation Page 4 ALTERNATIVES Concerning environmental review, the Council may identify additional information that is needed. This action would require continuance. Concerning the annexation, the Council may decide to not recommend approval to the Local Agency Formation Commission at this time. Concerning prezoning, the only zone consistent with the General Plan is Conservation/Open Space. The Council may adopt other minimum parcel sizes, which would be reflected in the number following the zone abbreviation. Concerning the pre- annexation agreements with land owners, the Council may give direction on items to be negotiated that would result in changes to the attached drafts. This action would require continuance. Substantial changes may require reconsideration of ' citywide policy previously established by the Council. Attachments #1 Draft Resolution approving a Negative Declaration of environmental impact #2 Draft resolution recommending that LAFCo approve the annexation #3 Draft ordinance prezoning the annexation area as recommended #4-A Draft pre - annexation agreement - Sierra Gardens (DeBlauw) #4-B Drift pre - annexation agreement - King #5 Initial Environmental Study 1 -* Attachment #1 RESOLUTION NO. (1999 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A NEGATIVE DECLARATION OF ENVRONMENTAL IMPACT FOR THE NORTHWEST MARGARITA AREA ANNEXATION AND PREZONING (ER 175 -98) WHEREAS, the City Council conducted a public hearing on January 5, 1999, and has considered testimony of interested parties, the records of the Planning Commission hearing and action, and the evaluation and recommendation of staff; and WHEREAS, the City Council has considered the draft Negative Declaration of environmental impact as prepared by staff and reviewed by the Planning Commission. BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Environmental Determination. The City Council finds and determines that the project's Negative Declaration adequately addresses the potential environmental impacts of the proposed annexation and zoning, and reflects the independent judgment of the City Council. The Council determines that the annexation and zoning will have no significant effects on the environment. The Council hereby adopts said Negative Declaration. On motion of , seconded by and on the following roll call vote: AYES: NOES: :1�M the foregoing resolution was adopted this _ day of '1999. I-5 Resolution No; Page 2 ATTEST: City Clerk Lee Price APPMVM AS TO FORK - x - (C*-.Atto� leff -- - Mayor Allen K. Settle I;-.- L Attachment #2 RESOLUTION NO. (1999 Series) A RESOLUTION OF RECOMMENDATION BY THE SAN LUIS OBISPO CITY COUNCIL REQUESTING THAT THE LOCAL AGENCY FORMATION COMMISSION APPROVE THE NORTHWEST MARGARITA AREA ANNEXATION (ANNX 175 -98) WHEREAS, the Planning Commission and City Council have held hearings on the proposed annexation on November 18, 1998, and January 5, 1999, respectively; and WHEREAS, the City Council on January 5, 1999, by Resolution No. (1999 Series), approved a Negative Declaration for the proposed annexation, pursuant to the California Environmental Quality Act Guidelines Section 15090; and WHEREAS, on recommendation of the Planning Commission and as a result of its deliberations, the Council has approved an amendment of the Zoning Map by prezoning the annexation property to Conservation Open Space with minimum parcel sizes of 30 acres and 100 acres (C /OS -30 and C /OS -100); and WHEREAS, City Council approval is a prerequisite for the San Luis Obispo County Local Agency Formation Commission (LAFCo) to initiate formal annexation proceedings; and WHEREAS, the territory to be annexed is not inhabited, and a description of the boundaries of the territory is set forth in attached Exhibit B; and WHEREAS, this proposal is consistent with the sphere of influence adopted by the Local Agency Formation Commission of San Luis Obispo County for the City of San Luis Obispo; BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1: Findings. 1. Annexation is appropriate since the annexation area's northern and western sides are contiguous with the City. 2. Annexation of the site is a logical addition to the City due to its location and availability of services. 3. The proposed annexation will promote the health, safety, and welfare of persons living or working in the vicinity of the annexation area. t --I Resolution No. Page 2 SECUON 2: Annexation Area Described. The annexation shall consist of that area, covering approximately 130 acres south of the ridge of the South Hills and north and east of Margarita Avenue, as shown on the site location map attached as Exhibit A and legally described in attached Exhibit B. SECMON 3: Council Recommendation. The City Council recommends that the Local Agency Formation Commission of San Luis Obispo County approve the proposed annexation, subject to property owners' compliance with City requirements regarding public improvements, in accordance with California Government Code Section 56844 and following. SECTION 4: Implementation. The City Clerk shall forward a copy of this resolution and prezoning actions, the Negative Declaration of environmental impact, and all pertinent supporting documents to the Local Agency Formation Commission. 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 , 1999. Mayor Allen Settle ATTEST: City Clerk Lee Price APP OVED AS TO FORM: City Attorney Je Jorgensen 1-8 Exhibit B Property Description That portion of Lot 30 of the San Luis Obispo Suburban Tract, in the County of San Luis Obispo, State of California, according to map recorded February 7,1906 in Book 1, Page 92 of Records of Sruveys, in the office of the County Recorder of said county, described as follows: Beginning at stake "S81," at the Northeast corner of said lot, and running on North line of lot, North 39 1R degrees West, 1.991/2 chains to a point; thence through said lot, South 0 degrees, 10' Fast, 20.04 chains to center of 30 foot road running along the South side of said lot; thence along centerline of said lot, East 1.99 112 chains to a point; thence leaving road, North 0 degrees, 10' West, 15 feet to stake "S 78" on North side of road, 20.00 chains to the point of beginning. Together with the following: PARCEL 1: Lot 31 of the Map of the Subdivisions of a Tract of land adjoining the Town of San Luis Obispo, the Property of W.L. Beebee and C.H. Phillips surveyed by R.R. Harris, November 1874, partially in the City of San Luis Obispo, in the County of San Luis Obispo, State of California, according to map recorded in the office of the County Recorder of said County. EXCEPTING therefrom that portion thereof conveyed to H.E. McBride in deed dated May 5, 1887 and recorded May 5, 1887 in Book X, Page 58 of Deeds. ALSO EXCEPTING therefrom that portion conveyed to the City of San Luis Obispo in dad recorded November 15, 1974 in Book 1806, Page 315 of Official Records. ALSO EXCEPTING therefrom Lots 1 through 40, Lot A. Stoneridge Drive, Bluerock Drive, Bluerock Cant and Rockview Place as shown upon the map of Tract No. 1150, in the County of San Luis Obispo, State of California, according to map recorded in Book 13, Page 48 of Maps, in the office of the County Recorder of said County. ALSO EXCEPTING therefrom that portion of Tract No. 1150 as described in the Gift Deed to the City of San Luis Obispo recorded April 9, 1993 in Book 4068, Page 185 of Official Records. ALSO EXCEPTING Tract No. 2126, in the City of San Luis Obispo, in the County of San Luis Obispo, State of California, as recorded March 21, 1997 in Book 18, Page 1 of Maps, in the office of the County Recorder of said County and Certificate of Correction recorded May 8, 1998 as Instrument No. 1998 -027041 of Official Records. (continues on next page) 1 -10