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HomeMy WebLinkAbout05-25-2016 PC Item 02 - Growth Management Study SessionPC2-1 Meeting Date: May 25, 2106 Item Number: 2 PLANNING COMMISSION AGENDA REPORT SUBJECT: Review and discuss the status of the residential and non-residential growth in the City following the adoption of the 2014 Land Use Element. PROJECT ADDRESS: Citywide BY: Xzandrea Fowler, Deputy Director XF Phone Number: 781-7274 e-mail:xfowler@slocity.org FILE NUMBER: N/A RECOMMENDATION: Review and discuss the status of residential and non-residential growth in the City following the adoption of the 2014 Land Use Element. 1.0 BACKGROUND Recently the Planning Commission along with members of the public have inquired about the status of growth management within the City’s Urban Reserve boundary. The intent of this study session is to provide context with respect to the status of residential and non-residential growth in the City following adoption of the 2014 Land Use Element (LUE), and to clarify some key assumptions that are made in the LUE based on analysis of demographic trends. The current amount of residential development that is in various phases of City review is provided in Attachment 1. The current estimated amount of square footage for non-residential development projects that are in various phases of City review are provided in Attachment 2. 2.0 COMMISSION’S PURVIEW The Planning Commission provides input on long range planning efforts, such as the implementation of the General Plan policies as they relate to growth and development. This study session will provide an opportunity for the Planning Commission to review the implementation of those polices and to provide staff with input and recommendations. 3.0 OVERVIEW OF ANTICIPATED RESIDENTIAL DEVELOPMENT The spreadsheet of residential development, provided in Attachment 1, represents proposed projects in various phases of City review following the adoption of the LUE in 2014. It is important to know that the 2014 LUE ‘reset’ residential development capacity and growth expectations. The numbers provided in LUE Table 3 are accurate and serve as the basis for implementation of the City’s Growth Management Regulations. The various phases of City review shown on the attached spreadsheet establishes the ‘certainty of development’ spectrum for projects moving through the entitlement process. The City’s Growth Management Regulations use building permit allocations to ensure compliance with the City’s 1% growth policy, so those projects with building permits issued are considered “in the pipeline.” Projects that have submitted applications for building permits, public improvement plans for new subdivisions (PIPs), or that already have some form of entitlement such as a use permit or Architectural Review, are more likely to move forward than those to the right of the bold line on the attached spreadsheet. Growth Management Study Session Page 2 of 4 PC2-2 As of April 2016, there are 20,996 residential units in the City. If all units in the attached spreadsheet are developed over the anticipated build-out period of 2035, the City will have 25,330 units. This is 432 units less than the projected LUE build out of 25,762 units by 2035. Another important piece of information to consider is how the number of residential units constructed relates to population growth. LUE Table 3 assumes a factor of 2.20 persons per household, based on information provided by the California Department of Finance. This number has consistently trended downwards resulting in the City maintaining a fairly stable population, increasing by 870 over the last 10 years, even while additional residential units have been constructed. Based on this analysis, the anticipated City population, if all units in the attached spreadsheet are developed, would be 55,726. This is 960 residents less than the LUE anticipated build-out population of 56,686 in 2035. 4.0 OVERVIEW OF ANTICIPATED NON-RESIDENTIAL DEVELOPMENT The attached spreadsheet of non-residential square footage represents proposed projects in various phases of City review following the adoption of the LUE in December 2014. The various phases of City review shown on the attached spreadsheet, provided in Attachment 2, establishes the ‘certainty of development’ spectrum for non-residential projects moving through the entitlement process. LUE Policy 1.11.4, stated below, establishes the non-residential growth rate and ensures compliance with the City’s anticipated General Plan buildout in 2035. Non-residential projects with building permits issued are considered “in the pipeline”; projects that have submitted applications for building permits, public improvement plans for new subdivisions (PIPs), or that already have some form of entitlement such as a use permit or Architectural Review, are more likely to move forward than those to the right of the bold line on the attached spreadsheet. LUE Policy 1.11.4: Non-residential Growth Rate Each year, the City Council shall evaluate the actual increase in non -residential floor area over the preceding five years. The Council shall consider establishing limits for the rate of non -residential development if the increase in non-residential floor area for any five-year period exceeds five percent. Any limits so established shall not apply to: A. Changes operations or employment levels, or relocation or ownership change, of any business existing within the City at the time the limit is set; B. Additional non-residential floor area within the Downtown core; C. Public Agencies; and Growth Management Study Session Page 3 of 4 PC2-3 D. Manufacturing, light industrial, research businesses, or companies providing a significant number of head of household jobs. Based on final building permits issued, 67,141 square feet of net new non-residential floor area was added to the City in 2015. This is a decrease of 9 percent from 2014, which saw 73,743 square feet of net new non-residential space. The annual non-residential growth rate for 2015 was 0.58 percent. From 2011 to 2015, the five-year growth rate for non-residential development was 3.70 percent, with an annual average growth rate of 0.74 percent. Net Annual Growth Rates of Non-residential Floor Area (2005–2015) Source: City of San Luis Obispo, Final Inspections If all projects in the attached spreadsheet are developed over the anticipated build-out period of 2035, the City will have added 2,054,369 square feet of non-residential square footage since LUE adoption in 2014. This equates to an average of approximately 102,700 square feet per year; a 0.89% average annual growth rate, which is below the average growth rate of one percent per year. The analysis above indicates that nonresidential growth will remain below the City’s one percent average annual growth rate throughout the general plan buildout period to 2035. This information is tracked regularly as part of the Annual Report on the General Plan. Any development trends or actual project proposals that would cause the conclusions of this analysis to change would be identified and reported to the Council and the community as part of the Annual Report. 5.0 PROJECT ANALYSIS Although staff cannot predict specific timelines for project completion because of a variety of complicating factors, it is important to know that the City’s long range planning is based on the assumption that all of the development envisioned in the General Plan would be constructed by the build-out year, or 2035. In other words, the City is planning for full build-out by ensuring that development proceeds in a manner that can be supported by available resources, and all appropriate measures to ensure that City goals and objectives for housing, jobs-to-housing balance, transportation, air quality, water resources, public safety, parks and recreation, and open space conservation (to name just a few areas of consideration) are met through the implementation of the General Plan. 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Growth Management Study Session Page 4 of 4 PC2-4 The Community Development Department anticipates updating the attached spreadsheets on an annual basis to assist the Council, Planning Commission, staff, and community, track the progress of all development in the City, and to ensure residential development and population growth are consistent with LUE policies and projections. 6.0 ATTACHMENTS 1. Growth Management – Residential Units, April 2016 2. Growth Management - Non-residential Square Footage, April 2016 Residential Projects (Number of Units) Buildings Permits Issued (In Pipeline) Building Permit Application Submitted PIPs Submitted or Approved Planning Entitlements Approved Planning Applications Complete and Under Review Planning Applications Submitted/ Incomplete/On Hold Pre-Application Submitted Anticipated Future Units Notes West Creek 179 Subject to Phasing Plan Imel Subdivision 18 Wingate Homes 142 Subject to Phasing Plan Jones Subdivision 65 Righetti Ranch Subdivision 304 Subject to Phasing Plan Anticipated in remaining subdivisions of OASP 271 979 is total buildout in OASP. Up to 271 additional units are anticipated. Toscano Moresco 161 Subject to Phasing Plan Serra Meadows 166 Subject to Phasing Plan Anticipated in remaining subdivisions of MASP 500 868 is total buildout in MASP. Up to 500 additional units are anticipated. Avila Ranch Specific Plan 720 Subject to Phasing Plan. Construction anticipated after 2020 San Luis Ranch Specific Plan 500 Subject to Phasing Plan. Construction anticipated after 2020 Froom Ranch Specific Plan (SFR/MFR)275 Subject to Phasing Plan. Construction anticipated after 2025. NOT part of CCRC Anticipated Single Family Residences 280 Approximately 15 per year (based on permit history) Santa Rosa Street Infill 25 Laurel Lane Mixed Use 18 Fremont Square 19 Caudill Mixed Use 36 Bishop Knoll 14 22 Chorro 26 Olive Mixed Use 17 San Luis Square 60 71 Palomar Ave. 41 Residences at Grand 4 1135 Santa Rosa 2 Iron Works 46 The Yard 43 460 Marsh Street 4 625 Toro 14 152 Ferrini 3 135 Ferrini 5 Monterey Place 30 Broad St. Mixed Use (3099/3049 Broad)8 The Junction 69 860 On the Wye (860 Humbert)20 Moylan Terrace 20 Under Construction Pacific Courtyards 9 Under Construction SLO Terrace (Rachel Court)17 Under Construction Laurel Creek Project (Avivo Townhomes)117 Under Construction Chinatown 16 Under Construction Garden Street Terraces 8 Under Construction 9 on Rockview 9 Under Construction South Hills Crossing (313 South)43 Under Construction Bridge Street (Terraza)26 Under Construction Brownstones 8 Under Construction Fixlini Tract 6 Under Construction TOTAL 465 129 530 241 1458 171 319 1051 4,364 Margarita Area Specific Plan Orcutt Area Specific Plan Other Specific Plans Other Residential Developments Certainty of Development Land Use Element 2035 Maximum Dwellings at Build Out 25,762 2015 Total Housing Units 20,966 Total units incorporating construction of all units above (since LUCE adoption, 2014) 25,330 Unit capacity remaining before maximum build out is reached in 2035 432 Existing Population (2014 LUE) 45,541 Anticipated Population at 2035 maximum dwellings (25,762 units X 2.2 people per household) 56,686 Anticiapted population with all units constructed above (25,330 units x 2.2 people per household) 55,726 Population capacity remaining before maximum build out is reached in 2035 960 No n ‐re s i d e n t i a l  Sq u a r e  Fo o t a g e (R e t a i l ,  Ho t e l ,  Of f i c e ,  In d u s t r i a l ,  He a l t h  Se r v i c e s ) Bu i l d i n g s  Pe r m i t s   Is s u e d  (I n   Pi p e l i n e ) Bu i l d i n g  Pe r m i t   Ap p l i c a t i o n   Su b m i t t e d PI P s  Su b m i t t e d   or  Ap p r o v e d Pl a n n i n g   En t i t l e m e n t s   Ap p r o v e d Pl a n n i n g   Ap p l i c a t i o n s   Co m p l e t e  an d   Un d e r  Re v i e w Pl a n n i n g  Ap p l i c a t i o n s   Su b m i t t e d / In c o m p l e t e / O n  Ho l d Pr e ‐Ap p l i c a t i o n   Su b m i t t e d Notes Re t a i l /  Of f i c e   Fr e m o n t  Sq u a r e                                  40 , 0 0 0   Sq u a r e  fo o t a g e  of  new  construction   only.  Fr o o m  Ra n c h  Sp e c i f i c  Pl a n                                45 , 0 0 0   Su b j e c t  to  Ph a s i n g  Plan. Construction  anticipated  after  2025 Ca u d i l l  Mi x e d  Us e                                                    5, 3 0 0   22  Ch o r r o                                                    2, 0 4 1   La u r e l  La n e  Mi x e d  Us e                                                    2, 3 0 6   Ol i v e  Mi x e d  Us e                                                    3, 5 0 0   Sa n  Lu i s  Sq u a r e                                                  13 , 0 0 0   Av i l a  Ra n c h  Sp e c i f i c  Pl a n 20 , 0 0 0                                Su b j e c t  to  Ph a s i n g  Plan. Construction  anticipated  after  2020 Sa n  Lu i s  Ra n c h  Sp e c i f i c  Pl a n 35 0 , 0 0 0                                In c l u d e s  Ho t e l  Sq u a r e  Footage. Subject  to  Phasing  Plan. Construction  anticipated  after  2020 Pu b l i c  Ma r k e t /  Lo n g  Bo n e t t i 47 , 0 0 0                                Sh e l l  St a t i o n  De v e l o p m e n t                                         10 , 0 0 0   Ir o n  Wo r k s                                          4, 4 0 0   Ae r o v i s t a  Pl a c e                                        37 , 3 2 0   Jo n e s  Ra n c h  Su b d i v i s i o n 15 , 0 7 0                          Br o a d  St .  Mi x e d  Us e  (3 0 9 9 / 3 0 4 9  Br o a d )                                      6, 0 0 0   Th e  Ju n c t i o n                                        1, 2 0 0   Ae r o v i s t a  Of f i c e  Bu i l d i n g s 37 , 0 0 0                              Ga r d e n  St r e e t  Te r r a c e s                                 10 0 , 0 0 0   In c l u d e s  Ho t e l  Se r r a  square  footage. Only  square  footage  of  new  construction.  Pa c i f i c  Co u r t y a r d 8, 0 0 0                                    Ch i n a t o w n                                 14 0 , 0 0 0   In c l u d e s  Ho t e l  Sq u a r e  Footage. Only  includes  new  construction  square  footage.  Ai r p o r t  Bu s i n e s s  Ce n t e r 75 , 0 0 0                                Mo n t e r e y  Pl a c e 24 , 0 0 0                                In c l u d e s  Hotel   Square  Footage Un i v e r s i t y  Sq u a r e 20 , 0 0 0                                Sq u a r e  fo o t a g e  of  new  construction  only.  Ho t e l  & Mo t e l s   To w n H o m e  Su i t e s 56 , 0 0 0                                  Mo t e l  In n                                      40 , 0 0 0   Gr a n a d a  Ho t e l  Ex p a n s i o n                                      9, 0 0 0   Mo n t e r e y  Ho t e l 60 , 0 0 0                                In d u s t r i a l   Ch e v r o n  Ar e a 80 0 , 0 0 0                                            Si t e  re m e d i a t i o n  is  moving  forward, but  plans  for  subdivision  and   de v e l o p m e n t  are  on  hold  according  to  the  applicant Co k e r  El l s w o r t h un k n o w n 35  commercial  lots   Di g i t a l  We s t 80 , 0 0 0                                  Wi n g a t e  Ho m e s 5, 0 0 0                                      Br i d g e  St r e e t                                      21 , 0 0 0   11 3 5  Sa n t a  Ro s a                                          5, 9 4 2   SL O  Br e w  Pr o d u c t i o n 31 , 2 9 0                                He a l t h / M e d i c a l  Se r v i c e s Fr o o m  Ra n c h  Sp e c i f i c  Pl a n  (C C R C ) un k n o w n   27 6  ap t s ,  66  vi l l a s ,  122  bed  facility….sq  ft  unknown  still Ot h e r Ho m e l e s s  Se r v i c e s  Ce n t e r                                  20 , 0 0 0   75  bed  Homeless  Shelter   TO T A L  SQ U A R E  FO O T A G E 39 8 , 2 9 0                        13 3 , 2 0 0                        15 , 0 7 0                          25 9 , 6 6 2                            41 7 , 0 0 0                          82 6 , 1 4 7                                      85 , 0 0 0                            2,134,369                                                                                                                                                      Sa n  Lu i s  Ra n c h  Ho t e l  Ro o m s 20 0                                                Ho t e l  & Mo t e l  Ro o m s    (H o t e l  Ro o m s  On l y  ‐   Sq u a r e  Fo o t a g e  Pr o v i d e d  Ab o v e ) Ce r t a i n t y o f D e v e l o p m e n t No n ‐re s i d e n t i a l  Sq u a r e  Fo o t a g e (R e t a i l ,  Ho t e l ,  Of f i c e ,  In d u s t r i a l ,  He a l t h  Se r v i c e s ) Bu i l d i n g s  Pe r m i t s   Is s u e d  (I n   Pi p e l i n e ) Bu i l d i n g  Pe r m i t   Ap p l i c a t i o n   Su b m i t t e d PI P s  Su b m i t t e d   or  Ap p r o v e d Pl a n n i n g   En t i t l e m e n t s   Ap p r o v e d Pl a n n i n g   Ap p l i c a t i o n s   Co m p l e t e  an d   Un d e r  Re v i e w Pl a n n i n g  Ap p l i c a t i o n s   Su b m i t t e d / In c o m p l e t e / O n  Ho l d Pr e ‐Ap p l i c a t i o n   Su b m i t t e d Notes Ce r t a i n t y o f D e v e l o p m e n t To w n H o m e  Su i t e s 11 6                                              Mo t e l  In n                                                      51   Gr a n a d a  Ho t e l                                                  24   Mo n t e r e y  Pl a c e   11                                                Ch i n a t o w n  Ho t e l   78                                                Ho t e l  Se r r a  (G a r d e n  St r e e t )   64                                                Mo n t e r e y  Ho t e l 10 2                                            TO T A L  HO T E L  RO O M S   24 4                                            35                                                ‐                                             16 7                                                20 0                                                ‐                                                             ‐                                             646                                                                                                                                                                                                                                            Av e r a g e  Gr o w t h  Ra t e Ye a r To t a l   Co m m e r c i a l   Sq u a r e   Fo o t a g e Pe r c e n t   Ch a n g e Av e r a g e   An n u a l   Gr o w t h  Ra t e 20 1 5 *        11 , 5 1 6 , 8 8 9  ‐ 0. 5 8 % 20 3 5  (i f  al l  sq u a r e  fo o t a g e  ab o v e   bu i l t ) 13 , 6 5 1 , 2 5 8        19 % 0 . 9 3 % *S o u r c e =  20 1 5  Ge n e r a l  Pl a n  An n u a l  Re p o r t