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HomeMy WebLinkAboutItem #4 - Reading File_2018 SLS Project Statement 1 Project Statement Updated February 2018 Marsh Nipomo Mixed Use, LP Project Statement Updated March 2017 S 2 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 3 Preamble The San Luis Square project is a mixed-use development on several parcels spanning between Marsh Street and Higuera Street. The innovative human scale of this Project includes high-density residential, a neighborhood-serving market, mixed-use commercial, on-site parking for residents and the public, bicycle parking, mid-block pedestrian crossings (paseos) as well as the potential for family friendly pedestrian links to the existing Jack House Gardens. 2 Our team of consultants, financial partners, City staff and overall economic factors are making the City’s vision uniquely possible at this time. The design of this micro- community is the direct result of the design objectives delineated in the City planning guidelines, including the Downtown Concept Plan vision document. This rare opportunity arises due to the efforts of the applicant acquiring all the contiguous properties necessary to produce the City-inspired qualities and amenities reflected in these plans. Project Statement Updated March 2017 S 4 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 5 Table of Contents Section 1: Project Description .......................................................................................................... 7 1.A: Project Alignment with Goals of City, County & Housing Element ................................................. 13 Section 2: Background of Project -History of Advisory Body Reviews ............................................. 17 Section 3: 2007 General Plan Amendments to Allow Increased Density & Height for Downtown Properties ......................................................................................................................................... 23 3.A: City Council Study Session on March 6, 2006 .................................................................................. 25 3.A.i.: City’s Examples of Buildings Over 50’ ................................................................................. 29 3.B: 2006 ARC Study Session ................................................................................................................... 31 3.C: 2006 CHC Study Session .................................................................................................................. 32 3.D: The Planning Commission Review ................................................................................................... 32 3.E: City Council’s General Plan Amendment February 6, 2007 ............................................................. 33 Section 4: View of the Hills ............................................................................................................ 37 Section 5: Consistency with General Plan Policies & Zoning Ordinance .......................................... 43 5.A: Current General Plan: Building Height ............................................................................................ 45 5.B: Current General Plan: Housing & Density ....................................................................................... 50 5.C: Current General Plan: Tourism……………………………………………………………………………………………………54 5.D: Current General Plan: Pedestrian Orientation ................................................................................ 56 5.E: Current General Plan: Parking ......................................................................................................... 61 Section 6: Economic Vitality & Other Downtown Projects ............................................................. 63 6.A: Similar Structures In the History of San Luis Obispo ....................................................................... 66 6.B: Nearby Similar Existing Structures, Approved & Future Projects ................................................... 68 6.B.i.: Downtown Structures with Comparable Height ................................................................. 68 6.B.ii.: Approved Projects In Development with Comparable Height ........................................... 72 6.B.iii.: Future Projects Pending Approval with Comparable Height ............................................ 78 6.C: Downtown’s Architectural Landscape ............................................................................................ 79 Section 7: Conclusion ............................................................................................................................. 81 Section 8: Exhibits ......................................................................................................................... 85 Exhibit A: 1993 Downtown Concept Plan ................................................................................................... Exhibit B: 03/14/06 Memo from John Mandeville (27 pages) ................................................................... Exhibit C: 10/2/2006 Architectural Review Commission Agenda Report (54 pages) ................................. Exhibit D: 02/06/07 Memo from John Mandeville (126 pages) ................................................................. Project Statement Updated March 2017 S 6 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 7 Section 1 Project Description Project Statement Updated March 2017 S 8 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 9 Section 1: Project Description General Description San Luis Square is comprised of three newly constructed four story mixed-use buildings with one level of retail at grade, and three levels of residential above grade and two levels of parking below grade (subterranean parking). The Project will include 63 small living units of high-density residential housing, 36 rooms of an extended stay hotel, ~22,500 S.F. of commercial space (including a neighborhood market), two mid-block pedestrian crossings (paseos), a public plaza, diverse bicycle parking and 136 public parking spaces. San Luis Square has been designed to offer modern options for residential floor plans average 576 S.F. ranging from 380 S.F. micro-units to a single 1099 S.F. one-bedroom unit. This range of offerings will result in naturally diverse demographics within the resident population which will create a new and unique neighborhood that is representative of the diversity in the City and provides exemplary compatibility with the Community Design Guidelines. Project Location Categorized as an “infill project” in the Downtown Commercial zone, San Luis Square is located on several parcels in downtown San Luis Obispo and involves the redevelopment of a 0.9797 acre portion of the block bound by Higuera Street, Nipomo Street and Marsh Street. The relationship between the buildings and paseo will include a neighborhood marketplace with a public market hall, upscale restaurants with indoor/outdoor seating, drought resistant and native plant landscaping as well as civic art both in the form of graphic murals and a three dimensional sculpture to vitalize an active pedestrian streetscape. Project Concept San Luis Square is an innovative collection of three architecturally distinct buildings clustered and joined together to form a unique space for both local residents and visitors of San Luis Obispo to enjoy. The design team wanted to provide the City and people of San Luis Obispo with a project that exemplified the architectural diversity of the Downtown Core. As a result, the three buildings were intentionally designed with architectural details that reflect various time periods throughout history - specifically the early 1900s, 1950s- 1960’s (“Mid-Century”), and present day. With over 22,000 S.F. of retail space and 15,940 S.F. of public spaces and paseos San Luis Square provides an atmosphere unmatched anywhere else in the downtown district. San Luis Square showcases proud examples of San Luis Obispo’s rich architectural history, and also provides a glimpse of what’s to come with nearly 40% of this Project dedicated to Public Space as detailed in Section 5.C of this document. Project Statement Updated March 2017 S 10 Section 1: Project Description (cont’) Collaborative Project: Summary of Architects & Designers Who Worked on Project Our design team is comprised of several of San Luis Obispo’s top architects and engineers working together and forming a collaborative atmosphere to achieve the best project possible for this extension of our Downtown Core: 581 Higuera building -Designed by Ten Over Studios 570 Marsh building -Designed by RRM Design Group 590 Marsh building -Designed by Isaman Design and Arris Studio Architects Signage Program -Designed by Pierre Rademaker Studios Landscape Concepts -Designed by RRM Design Group Engineering Studies -Performed by Ashley Vance Engineering, Inc. The Project is designed in such a manner that the sum of its parts creates a far richer product than if one single architectural firm designed the entire project. The joint effort has been further enhanced by City Staff assessments and comments along with the recommendations and input of City Advisory Bodies (Architectural Review Commission [ARC], Cultural Heritage Committee [CHC] and Jack House Committee) -all in conjunction with extensive marketing, demographic surveys, and community outreach events. Profile of Residential Space The residential portion of this Project offers modern options for floor plans ranging from 380 S.F. micro-units to a 1099 S.F. one-bedroom and will include studios, one bedroom spaces, for a total mix of 63-units dispersed throughout the Project. With an average unit size of 573 S.F., two units are at 1,000 S.F. and just one of the 63 units is above 1,000 S.F, at 1099 S.F. The intention is to create diverse options for much needed workforce housing for the Downtown Core to be offered at accessible price points. This allowable density makes it possible for a wide variety of residential spaces to be offered for a multi-generational cross-section of prospective residents. Inclusionary housing requirements are met through the payment of in-lieu fees. The “typical resident” as envisioned by the applicant will include: working professionals ranging in age from 20’s to 60’s, socially active retirees, single families, head of household workers, visiting teaching professors, local purveyors who want to live near their businesses in the Downtown Core, DINKS, single-parent households, corporate housing, culturally engaged artists, intellectuals and retirees -all of whom wish to enjoy a downtown lifestyle with travel options. Project Statement Updated March 2017 S 11 Section 1: Project Description (cont’) Profile of Commercial Space An extended stay hotel of 36 rooms will occupy two floors of the 581 Higuera building. This product proves flexibility for the longer stay visitors to San Luis Obispo with such conveniences as walking distance to the City and County Courts, businesses and local attractions. The commercial portion of this Project will include a variety of retail space sizes ranging from corporate offices, small boutiques, specialty merchants, mom-and-pop retailers, and known name anchor tenants. A market is also planned for the 581 Higuera building, which will serve the surrounding Downtown residents who currently have little access to fresh produce beyond the famed Thursday night Farmers’ Market. In addition to the public market in the 581 Higuera building, San Luis Square has incorporated a top-floor viewing deck as part of a lounge open to the public. The relationship between the buildings and paseo is designed to enhance the pedestrian experience by including such things as: upscale restaurants & specialty cafes with indoor/outdoor seating, drought tolerant evergreen landscaping and civic art both in the form of graphic murals and a three dimensional sculpture to further vitalize an active pedestrian streetscape. The variety of goods and services provided will give a wide selection of consumer shopping options and services intended for both local residents and tourists alike Restaurants, bookstores, sporting goods, a fresh produce market, local purveyors/craftsmen, art galleries, gift shops, specialty food shops, electronics and clothiers, are but a sampling of the potential businesses expected to populate the commercial spaces of San Luis Square that will serve to enrich the surrounding urban neighborhood. Project Density and How It Is Achieved Per the City zoning regulations, the allowable Density Units per acre for any project in this region of the Downtown Core is 36 units per acre. Given that San Luis Square has a total acreage of 0.9797, the total Density Units utilized by the Project is 35.18 -which falls just under the maximum units that would be allowed (by regulation) for a project of this same size (35.27 Density Units). San Luis Square achieves its allowable density by combining four parcels, all included as Project applicants. The disposition and relationship of the Project applicants is as follows: Project Statement Updated March 2017 S 12 Section 1: Project Description (cont’) 590 Marsh and 578 Marsh are owned by Marsh Nipomo Mixed Use, LP. 581 Higuera is owned by co-applicant, 581 Higuera Restaurant Group, LLC under contract with Marsh Nipomo Mixed Use, LP. 570 Marsh is owned by the Plateroti family, which is a co- applicant in common venture with the other property owners. Project Height The 581 Higuera building that was approved in concept by the ARC and the CHC is 59.5 feet. The 570 Marsh building that was approved in concept by the ARC and the CHC 54.5 feet. The 590 Marsh building that was approved in concept by the ARC is 54.5 feet. Per the San Luis Obispo Downtown Design Guidelines, all floors above two stories are set back such that they are rendered virtually “invisible” on the pedestrian level. This is artistically illustrated in the accompanying submittal package which contains elevations for all buildings. Per the Building Code §1009.16.1, rooftop appurtenances are not counted against height. (Please refer to Sections 3 & 5 for a detailed discussion of consistency with zoning regulations and policy objectives.) Project Materials As mentioned previously, the three buildings were intentionally designed with architectural details that reflect various time periods throughout history. As such, special attention has been given to select monument quality materials that are representative of the prevailing building materials and techniques of each period: 581 Higuera (time period: early 1900s, early 20th Century) • “English Pub” colored brick, concrete bulkheads • Custom metal, metal walls and roof panels • Corten steel panels, perforated/decorative metal panels • Stucco, anodized aluminum windows & doors 570 Marsh Street (time period: “mid 20th Century”, 1950-1960s) • Bracciano-colored RomaBrick, Cortona-colored Tundra brick • Pre-fab lintels, cornices & bulkheads • Painted metal panels, powder coated storefront doors & windows • Dark sky light fixtures 590 Marsh Street (time period: “present day”, early 21st Century) • Terracotta cladding, precast concrete bulkheads, brick façade • Glazing with Trulite spandrels, Shilden terracotta baguette sunscreen • Painted steel accents, anodized storefront doors & windows • Painted smooth trowel stucco • Sunset dark sky lighting Project Statement Updated March 2017 S 13 Section 1.A: Project Alignment with Goals of City, County and Housing Element; Neighbor Outreach The San Luis Square project is in alignment with the City’s Zoning Regulations, General Plan (including the recent Land Use & Circulation Element (LUCE) update) Housing Element Update and the Downtown Conceptual Plan. The current design of San Luis Square also implements important direction received from the ARC, CHC, Planning Commission and City Council from comprehensive study sessions conducted in 2006 and 2007 relating to increased building height (50’ and higher) and pedestrian orientation that culminated in a general plan update allowing for increased building height and density when certain policy objectives are met. The Project meets the required policy objectives for additional height and respects the Downtown Design Guidelines, which recognizes heights of 50-75 feet, per the zoning regulations. The Project is being processed as one submittal that includes all four parcels (as detailed in the above subsection). Many of the key design features capture the spirit and intent of the City’s vision document Downtown Conceptual Plan with mid-block access, pedestrian scale features, and shared open spaces and plazas. These amenities are best considered when the Project is viewed as a whole and the buildings are presented in this way. Furtherance of Major City Goals As stakeholders in the future of San Luis Obispo, the applicants have crafted the Project to align with three of the 2017-19 City Goals: Housing (with long term and short term options), Multi-Modal Transportation (in order of hierarchy of importance: Pedestrians, Bicycles, Public Transportation, Automobiles) and Climate Action Plan implementation (endeavoring for Silver LEED rating). Neighborhood Integration & Enhancement Particular attention and respect has been given to the existing neighborhood and adjacent properties. The developer’s team has personally met with the residents of the surrounding residential and commercial properties, the advisory Jack House Committee as well as other community-based organizations on numerous occasions. To date, these meetings have included a) several formal and informal sessions with Save Our Downtown and its leadership, b) two formal and several informal meetings with the residents of Marsh Street Commons, c) three different conceptual ARC meetings, d) one CHC hearing (joint meeting with ARC), and e) numerous appearances at Jack House Committee meetings. Project Statement Updated March 2017 S 14 Section 1.A: Project Alignment with Goals (cont’) Neighborhood Integration & Enhancement (con’t) As part its “good neighbor policy”, the developer has offered to the City of San Luis Obispo to financially underwrite landscaping improvements recommended by the Jack House Committee for the Jack House public gardens. The following page gives a summary of the benefits San Luis Square provides for the community and surrounding neighborhood that are in alignment with City & County goals. (Please refer to Section 5 for a detailed discussion of consistency with zoning regulations and policy objectives.) Project Statement Updated March 2017 S 15 Section 1.A: Project Alignment with Goals (cont’) Neighborhood Integration & Enhancement (con’t) Summary of Community Benefits Provided by San Luis Square Project Affordable by design Workforce Housing • 63 units • Average floor area per unit = 573 S.F. Pedestrian Amenities: • Large paseo between Marsh & Higuera Streets with a central plaza • Mid-block paseo joining San Luis Square Paseo & Coast National Bank property • Benches, decorative lighting • Variety of bike parking racks, lockers & stations • Vertical living garden walls • Outdoor eating area, drought conscience landscaping • Interactive signage throughout • Public art sculpture near center of central plaza • Additional gateway presentation to the Jack House public park View Access and Preservation: • Public accessible viewing of Cerro San Luis Obispo mountain & surroundings via street level benches as well as rooftop lounges and gardens Other Policy Objectives: • Compliance with General Plan & Downtown Conceptual Plan • 136 public parking spaces • Electrical Vehicle Charging stations in parking garage • Proposed sponsorship of landscaping improvements for the Jack House • Revitalization of the downtown region south of Nipomo Street • Access to Public Transportation • Infill Construction & Development • Energy efficient design & construction to offset carbon footprint • Solar panels installed on building rooftops • Water-wise, drought tolerant plants used throughout landscape design • Self-service public access bicycle repair stations • No variances or exceptions being requested Project Statement Updated March 2017 S 16 Section 1.A: Project Alignment with Goals (cont’) Summary of Elements Provided by San Luis Square Project That Support Implementation of the City Council’s Major Goal of Climate Action Plan Renewable Energy & Photovoltaic Orientation: • Building orientation for solar design • Electric car charging spaces • Solar panels on all the rooftops • Non-HCFC refrigerants • Heat reduced roofing • High efficiency fixtures • Energy rating exceeding Title 24 Enhanced Access to Mobility: • Bike parking and corral storage spaces • Ride sharing and Uber®/Lyft® stop at 581 Higuera Building • Proximity to urban transit with bus stops nearby Ecological Connections: • Rooftop gardens and trees • Landscape walls • Community Open Space in project (public plaza and rooftop café) • Location near public park (Jack House); • Innovative human scale (streetscape furnishings, fixtures & treatments) Water-wise Adaptability: • Greywater reuse • Drought tolerant, non-invasive plants. • Storm water quality control • Construction waste management (recycling) • Existing infrastructure (including storm drainage for dewatering parking lot) Spectrum of Carbon Footprint Reduction Actions: • Durability planning (no carpet in kitchen, bathrooms, laundry and spa areas, for example) • Innovative Design (small units) • Achieve density of 40 or more per acre (with hotel units) • Night Sky compliant outdoor & landscape lighting • High efficiency fixtures • Energy rating exceeding Title 24 • Framing efficiencies (pre-cut) • FCS certified Tropical Wood Air Quality Management Measures: • Low impact combustion mechanisms and alternatives and exhaust controls • No HVAC in garage • Smoking prohibited throughout buildings Project Statement Updated March 2017 S 17 Section 2 Background of Project History of Advisory Body Reviews Project Statement Updated March 2017 S 18 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 19 Section 2: Background of Project -History of Advisory Body Reviews Summary of Previous Review by City Advisory Bodies The three buildings comprising the San Luis Square project have had multiple reviews by City advisory bodies. As a result of these reviews, the City will now consider final action at the Architectural Review Commission (ARC) on a revised plan which incorporates all reasonable and feasible changes into account. A summary of these reviews and actions follows: December 1, 2008: ARC approval of 4-story building at 590 Marsh Approval by ARC of a 4-story project at 590 Marsh (aka: “The Foster Freeze building”). At over 50 feet, the project reviewed in 2008 was similar in mass and scale to the current San Luis Square building, although the architecture has evolved dramatically. July 21, 2014: Conceptual ARC Review of 590 Marsh The Architectural Review Commission gave conceptual endorsement to the redesigned 590 Marsh Street project. During the Public Comment portion of this ARC conceptual hearing, several Jack House Committee members requested changes to respect the Jack House. It was at this time the applicant decided to create 570 Marsh as a separate building, thus reducing the footprint of 590 Marsh building while simultaneously enhancing the pedestrian experience by creating a paseo between the three buildings to create what is now known as San Luis Square. Jack House Committee Input on 570 Marsh During 2014 Subsequent to the July 21, 2014 ARC hearing, the applicant voluntarily approached the Jack House committee to get input on design of 570 Marsh. The Project management team attended the Jack House meetings on October 22, 2014 and November 19, 2014 seeking input. As a result, the 570 Marsh building now steps back significantly at the upper levels. More importantly, the driveway and parking lot entrance that was originally designed to be on the common border with the Jack House along (Marsh Street) was moved to Nipomo Street, thus allowing a passive buffer between the properties. December 1, 2014: First Conceptual ARC Review of 581 Higuera The third building in the San Luis Square project was considered by the ARC on December 1, 2014. The ARC expressed support for the Project and requested revisions be considered. July 13, 2015: Joint CHC and ARC Conceptual Review The applicant brought all three San Luis Square buildings to the ARC and the CHC, sitting in a joint session. Changes presented by the applicant included: 1) A re-designed 581 Higuera building (including a more architecturally integrated fourth floor) 2) Further setbacks and design changes for 570 Marsh to respect the Jack House 3) A re-design of the exterior for 590 Marsh building This re-design received approval from both the CHC and the ARC. Project Statement Updated March 2017 S 20 Section 2: Background of Project (cont’) July 13, 2015: Joint CHC and ARC Conceptual Review (cont’) The ARC voted overwhelmingly (3 to 1) to endorse the revised Project, including the fourth floor at 581 Higuera. The list of suggestions and recommendations given by the joint ARC/CHC panel have been addressed in a submittal currently being processed for final ARC consideration. New Project changes in response to the July 15, 2015 ARC and CHC recommendations include: 1. Revised fenestration and balcony deck design on the 570 and 590 Marsh Street buildings and on the 570 Marsh building facing the Jack House. 2. Solar shading study (demonstrating little or no impact on Jack House gardens). 3. Preservation and protection of redwood trees on the common boundary with the Jack House. 4. Replacement of wood on 570 Higuera with “long-lasting materials”. 5. Reduction of glass from prior designs. 6. Further set backs on upper floors of all buildings. 7. Additional submittals for: a. Evaluation of impacts on views from the Jack House; b. Additional details regarding justification for the proposed building heights per the City height ordinance; c. Information regarding dimensions and characteristics of pedestrian areas d. A more complete sign program; and e. A feasibility study for the subterranean parking garage. Additionally, the corner of the 581 Higuera building closest to the Jack House property has been re-designed and softened in order to be “respectful” of the architectural transition between the properties. The fourth-floor design was updated to pull back even further, as part of a later revision. A bench has been added to the street frontage of the 581 Higuera building in order to promote public viewing of Cerro San Luis Mountain, based on the suggestion of a Save Our Downtown member. All told, the suggestions of the three most recent ARC/CHC meetings and dozens of recommendations, including feedback from numerous community outreach meetings, are incorporated into the final design currently being submitted for ARC consideration. Additional Jack House Committee Input on San Luis Square Throughout 2015 During additional discussions with the Jack House Committee in February, May September and October of 2015, the applicant agreed to retain the line of redwood trees lining the common boundary which provide a natural screen of the 570 Marsh building (and partially of the 581 Higuera building) from the Jack House and its gardens. As a result, design revisions include a setback on the upper floors of the 570 Marsh building to accommodate these trees as well as a setback of the underground parking structure to accommodate the tree roots. In addition, a softening of the closest corner of the 581 Higuera building was included to further respect the architectural transition between the two properties. Project Statement Updated March 2017 S 21 Section 2: Background of Project (cont’) Additional Jack House Committee Input Throughout 2015 (cont’) Discussions continue with the Jack House as well as neighbors on Marsh Street concerning building design and street trees. The Project can replace ficus trees on Marsh Street with more appropriate City-approved trees and alternate designs for this are included in submittal package currently under review for final approval. A badly diseased Black Walnut tree situated on the common boarded of the Jack House property is to be replaced under current assessments and proposals still under discussion. Project Statement Updated March 2017 S 22 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 23 Section 3 2007 General Plan Amendments to Allow Increased Density & Height for Downtown Properties Project Statement Updated March 2017 S 24 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 25 Section 3: 2007 G.P. Amendments to Allow Increased Density & Height for Downtown Properties Allowing for adequate height for developmental potential for properties in the Downtown Core has been an item of concern of City officials and advisory bodies for a number of years. This section summarizes the study sessions and General Plan Amendments adopted from 2006 which address this topic. Specifically, this section provides details on the City’s development of regulations encouraging four story and higher buildings in the Downtown. In 2006, Staff recommended, and the City Council, Planning Commission, Architectural Review Commission and Cultural Heritage Commission agreed, that “increasing the allowable density, square footage, height and number of stories will improve the feasibility of developing housing in the downtown” (Mandeville Council Agenda Report, 3-1406, page 10.) The General Plan, Zoning Regulations, Community Design Guidelines and Downtown Concept Plan were subsequently revised and developed in light of this effort to encourage increased building height and density in the Downtown Core. Section 3.A: City Council Study Session on March 6, 2006 A study session was conducted under the direction of John Mandeville, then Director of Community Development. A staff report dated March 14, 2006 was prepared by Doug Davidson, then Housing Programs Manager. The subject was: “Building Height and Intensity in the Downtown Core.” A copy of the March 14, 2006 Staff Report is attached hereto as Exhibit B. The stated purpose of the Study Session was “[t]o clarify existing City policies for downtown development as it relates to building height and intensity.” (3/14/06 Staff Report, page 1-1) (Emphasis added) The staff report acknowledged that “future redevelopment potential is actually quite limited. When historic properties, recently developed and retrofitted properties, and public buildings are taken out of the picture, there are relatively few sites available for development. Based on that criteria, over two-thirds of the sites downtown are unlikely to develop or redevelop.” (3/14/06 Staff Report, page 1-1) (Emphasis added) The report also acknowledges that “-with dwindling land available for new construction, downtown infill projects present a new opportunity for business and residential development.” (3/14/06 Staff Report, page 1-3) Project Statement Updated March 2017 S 26 Section 3.A: City Council Study Session on March 6, 2006 (cont’) The staff report criticized the “landmark” designation required under LUE Policy 4.16.4 at that time. Policy 4.16 previously alluded to allowing a “few taller landmark buildings (about five stories or 75 feet) …where they will not obstruct views or sunlight for public spaces.” The staff report continued on to discuss the inconsistency between the subjective “landmark” designation and the contradictory LUE Policy 4.15 language, which called for the City “to keep the commercial core’s sense of place and appeal for walking, it should remain compact and the City’s most intensely developed area.” The staff report goes on to state that: “a policy limiting building height to 2-3 stories could be seen as constraining downtown’s ability to be the City’s most intensely developed area, particularly when other areas of the City have developed with large 3-4 story buildings.” (3/14/06 Staff Report, page 1-5) (Emphasis added) The staff report discusses the 1993 Downtown Concept Plan of which one of its primary goals is: “ ‘encourage[s] the addition of more housing downtown on upper stories of more commercial buildings in the core area […] and ‘encourages the addition of more housing downtown on upper stories over commercial and parking structures.’” (Emphasis added) Davidson acknowledged that “the Zoning Ordinance height limit of 50 feet [at the time], limits the mixed-use and housing potential of the downtown. The Housing element has updated land use policy by requiring (‘shall’ statement) and providing incentives, such as height, parking and density flexibility for housing.” The report goes on to state “increasing the allowable density, square footage, height and number of stories will improve the feasibility of developing housing in the downtown.” (3/14/06 Staff Report, Pages 1-9;1-10) (Emphasis added) The report acknowledged the input of the Downtown Concept Plan vision creative team, as memorialized in the Attachment 6 to the report as follows: “Ken Schwartz suggests that the downtown height limit of 50 feet be devoted to commercial retail and some supportive office space and that height exceptions for housing, if desired be allowed above that height.” Andrew Merriam suggests that by just raising the height limit from 50-60 feet, one additional floor of housing could be accommodated for a four-story building with three levels of housing or one level of retail, one level of office space and two stories of housing.” (3/14/06 Staff Report, Page 1-11) (Emphasis added) Project Statement Updated March 2017 S 27 Section 3.A: City Council Study Session on March 6, 2006 (cont’) Attachment 5 to the staff report is a Memorandum from Allan D. Kotin & Associates dated January 13, 2006. Mr. Allan D. Kotin is Owner and Principal of Allan D. Kotin & Associates. Mr. Kotin has over 40 years of experience in real estate economics including financial analysis and market research for public agencies. In addition, Mr. Kotin is a long standing professor at the graduate school of Policy, Planning, and Development at the University of Southern California and was asked by then CAO Ken Hampian to provide this memorandum discussing the economic impacts of constrained height limitations in downtown San Luis Obispo. A copy of the report is contained on pages 1-20 through 1- 23 of Exhibit B, as an attachment to the 3/14/06 City Council Staff Report. The Kotin Memo begins with the following discussion: “At your request, I have prepared this memo outlining what I perceive to be some of the economic issues associated with the limitation of building height in downtown San Luis Obispo. Although I am not an urban planner, I have given considerable thought to those ingredients that make for successful downtowns, mixed-use and effective revitalization where revitalization is needed. In that capacity I have studied in some detail the revitalization of Pasadena, Santa Monica, Santa Barbara, and not all irrelevantly, San Luis Obispo. In addition, I teach at the graduate School of Policy, Planning and Development at the University of Southern California. The two classes I teach are the Development Approval Process and Public Private Joint Ventures. In both classes, I deal with the issue of successful downtown revitalization and the interaction of developmental economics and land use regulation. [… ] One of the most interesting things about successful downtowns, whether they are continuously successful or successful in revitalization, is that to survive you must grow. (Kotin Memo, page 1) Project Statement Updated March 2017 S 28 Section 3.A: City Council Study Session on March 6, 2006 (cont’) Kotin goes on to discuss the feasibility of retail and parking as follows: “Let us begin with the concept that retail, even in a situation where parking is heavily subsidized, is a difficult land use not supporting terribly high land values. Retail tenants have a wide variety of options and often are unwilling to pay ever escalating rents. Retail generally only works at one level. Only in rare situations and with particular design excellence and entrepreneurial zeal do you get multiple story retail that is effective and survives. […] it is difficult, albeit not impossible, to make a cost effective project in which there is one level of retail and only two levels of housing. This product works much better at three or four levels of housing. The reasons for this are the fact that more housing reduces the land cost, and also more housing allows you to approach critical mass. Projects of five, ten, or even 20 units are inherently uneconomical to operate. Projects of 50 or 100 units are much more economical. It is difficult to get such large projects if housing is restricted to only one or two floors above retail.[…] Finally, and perhaps most critically, is the fact that without being able to go fairly high, that is to say four, five or more stories, it is very difficult to justify the entitlement risk, the construction risk and the operational risk associated with successful mixed- use development. Elevators, air shafts and other vertical penetrations are required for even a two or three story building and they do not changed materially for a much higher building. This means that the building efficiency increases with height. […]Finally and perhaps most significantly, is the fact that without there being an economic benefit, some sense of leverage of value added, redevelopment is much less likely to occur. In an environment, particularly found in San Luis Obispo and other “successful” urban areas, land prices are very high and the only way to achieve the surplus value needed to warrant redevelopment or new development is in fact to allow increasing density […] In conclusion, the land use impacts of severe height limitations are primarily to reduce significantly redevelopment and growth.” (Kotin Memo, pages 2-3) (Emphasis added) Kotin goes on to discuss the scarcity of available building sites that can accomplish the type of density required to achieve the housing programs and policies: “My personal view is that it is most unlikely that there will a large number of such construction involving a mixture of retail, hotel and residential uses. Such construction requires sites of a minimum of 30,000 square feet and preferably 50,000 or more. The number of places where such size can be assembled and effectively developed is very small. The combination of seismic limitation, recent rehabilitation, and lot configuration all virtually guarantee that the number of locations at which higher density mixed-use development is likely or possible to occur in downtown, probably numbers is single digits and certainly not more than a dozen or so.” (Kotin Memo, page 4) Project Statement Updated March 2017 S 29 Section 3.A.i. : City’s Examples of Buildings Over 50’ In the 2006 review, the City noted numerous existing tall buildings in its prior examples, including the following notable structures: Anderson Hotel, 955 Monterey Street: 65 feet to parapet, 90 [feet] to top of finial. Pacific Bell Building, 872 Morro: 64 feet to lower roof deck, 80 feet to upper deck. Palm Street Parking Garage / City Offices: 54 feet to parapet, 77 feet to top of tower. (10/2/06 ARC Staff report, Page 5) (Emphasis added) On the following pages, the applicant has included images below of the buildings cited by the City. Figure 1: Anderson Hotel (1922) 955 Monterey Street, with a height of 65 feet to parapet and 90 feet to top of finial. Project Statement Updated March 2017 S 30 Section 3.A.i.: City’s Examples of Buildings Over 50’ (cont’) Figure 2: Pacific Bell Building (1967 & 1981) at 872 Morro Street is 64 feet to lower roof deck, 80 feet to upper deck. Figure 3: Palm Street Parking Garage and City Offices (2006) 54 feet to parapet, 77 feet to top of tower. Project Statement Updated March 2017 S 31 Section 3.B: 2006 ARC Study Session After the City Council study session in March of 2006, the ARC held an “Overview and Discussion of Council direction to consider alternatives for moderately increasing Downtown building height and intensity limits.” A copy of the staff report, dated October 2, 2006, is attached for reference as Exhibit C. The staff report references a prior approval for the Bermant Homes project which predates the current Marsh Street Lofts parcel at Marsh and Nipomo: “Staff has based its 55’ recommendation with the designers of two recent four- story buildings proposed downtown, the Bermant Homes project at the corner of Marsh and Nipomo, and the Ah Louis Building proposed adjacent to the historic Ah Louis Store. Both these buildings are proposed at four stories and 50-feet tall.” (10/2/06 ARC Staff report, Page 5) (Emphasis added) The Bermant Homes project was approved at 54-feet tall: ARC Action Item #1 in the staff report reads as follows: “Staff suggests that an increase in building height from 50’ to 55’ would represent a moderate increase in building height limits that would accommodate four story buildings and facilitate housing development. The ARC should discuss building height in the context of LUE Policy 4.16.4 and recommend changes that would implement Council direction, in order to achieve General Plan goals for retail and land uses, design amenities and housing.” (10/2/06 ARC Staff report, Page 6) (Emphasis added) John Mandeville, then Director of Community Development sent a memorandum to the CAO at the time Ken Hampian, summarizing the final action taken the ARC at the October 2, 2006 study session described above. The memorandum dated October 3, 2006 was prepared by Michael Codron, then Associate Planner. The subject was: “Downtown Building Height and Intensity Limits: ARC Review”. A true and correct copy of the October 3, 2006 Memorandum is attached here to as Exhibit D (Page 1-106 as Attachment 13), Mandeville documents that by consensus the ARC provided direction and feedback to staff regarding building height. Directional item #1 in the Mandeville memo reads as follows: “The ARC supports increasing the base height limit for new buildings downtown to between 55 to 60 feet.” (2/6/07 Agenda Report pg. 1-109) (Emphasis added) Project Statement Updated March 2017 S 32 Section 3.B: 2006 ARC Study Session (cont’) In Directional item #5 of the October 3, 2006 Mandeville memo, the ARC further expounds on its support of increased height: “The ARC supports a use permit process for buildings above the base height. A tall building use permit should be used to encourage design amenities and features in tall buildings, such as: • The project is designed to exceed Title 24 requirements by a minimum of 5% and meets the solar access standards provided in Table 2 of the Conservation and Open Space Element • The project provides for an adaptive reuse of a historical resource in a manner consistent with the Secretary of the Interior’s Standards for Rehabilitation • The provides a public viewing deck or similar feature to provide public access to views of surrounding natural features such as Cerro San Luis • Minimal residential component of 18-units per acre • Inclusionary housing requirement is met on-site • Project provides major pedestrian connection between Higuera Street and the Creekwalk, Monterey Street and the Creekwalk, or between Higuera Street and Marsh Street at a mid-block location • Project plans are certified to meet Silver LEED or equivalent • Project meets the City’s definition of “affordable by design” • The project involves a public/private partnership with the purpose of providing affordable housing” (2/6/07 Agenda Report pg. 1-110) (Emphasis added) Section 3.C: 2006 CHC Study Session On September 25, 2006 the CHC considered increasing height to accommodate residential and voted 4-0 to increase height for such uses. “The CHC supports a moderate increase in the base building height limit, specifically to accommodate four story buildings, consistent with Council direction to consider alternatives for a moderate increase to downtown building height and intensity limits to achieve General Plan goals, including housing, retail floor area and design amenities.” (2/6/07 Agenda Report pg. 1-104 of Exhibit D) (Emphasis added) Section 3.D: The Planning Commission Review The Planning Commission endorsed the increase in height in January 2007. Director Mandeville sent a memorandum to the CAO Ken Hampian summarizing the discussion of the Planning Commission at the December 13, 2006 study session. The December 28, 2006 memorandum was prepared by Michael Codron, then Associate Planner. The subject was: “Downtown Building Height and Intensity Limits: Planning Commission Review”. A true and correct copy of the December 28, 2006 Memorandum is attached here to as Exhibit D, Project Statement Updated March 2017 S 33 Mandeville reports that during that December 2006 hearing, Commissioner Christianson: “…noted that work-force housing represents all types of workers, not just low- income; and that the need to preserve open space is a priority that reflects the need for added retail and increased density downtown…” (2/6/07 Agenda Report pg. 1-113) (Emphasis added) The Planning Commission study session was continued to the next scheduled hearing date of January 10, 2007 where the Planning Commission recommended an increase in height. Director Mandeville authored another summary memo to CAO Ken Hampian stating that the Planning Commission: “…voted 6-1…to approve a recommendation to the City Council to approve General Plan amendments that would provide for a moderate increase in downtown building heights and intensity limits. “ (2/6/07 Agenda Report pg. 1-114) (Emphasis added) Section 3.E: City Council’s Feb 6, 2007 General Plan Amendment of Building Height and Density Increases The final approval of the General Plan Amendment implementing the increased building height and density occurred in February of 2007. A copy of the staff report, dated February 6, 2007, is attached for reference as Exhibit D. The Agenda Report summarized the prior ARC, CHC and Planning Commission study sessions as follows: “In summary, after several advisory body hearings with extensive public input, recommendations are made to clarify existing policies and allow for a moderate increase to downtown building height limits in a way that: • is consistent with the direction originally provided by the City Council on this issue; • provides incentives for projects that preserve historic resources and insures on going protection for historic buildings; • helps the City achieve its goals to increase housing in the downtown core area; • supports the City's economic goals; • is based on principles of good urban design” (2/6/07 Agenda Report pgs. 1-1 1-2) (Emphasis Added) The Agenda Report goes on to state its concern with the previous “landmark” status for tall buildings: “The City's goal for taller buildings in the downtown core is no longer sufficiently clear. The General Plan's description of "a few taller, landmark buildings (about five stories or 75 feet)," does not provide the direction needed to guide decisions buildings that exceed 50 feet in height. How many are a few? Project Statement Updated March 2017 S 34 Section 3.E: City Council’s G.P. Amendment Feb 6, 2007 (cont’) When should one request be approved and another denied? Which views of the hills should be preserved? What defines a landmark building?” (2/6/07 Agenda Report pg. 1-4) (Emphasis Added) The Agenda Report goes on to state: “To address these ambiguities, five policy amendments are recommended (as well as new implementation programs, planning application requirements and definitions) to clarify General Plan policies regarding downtown building height. These amendments have been crafted over the course of seven public hearings, based on the input provided by the public and the City's advisory body members. The primary issues that were considered include historic preservation practices, the economic benefits of taller buildings and the need for housing in the downtown core” (2/6/07 Agenda Report pg. 1-4) (Emphasis Added) The public was very involved in the study session leading up to the General Plan Amendments, as evidenced by the following language in the agenda report: “Public testimony also indicated that increasing the residential density limits downtown would be one way to encourage smaller units, because the only way to build more dwellings on a given site is to make them smaller.” (2/6/07 Agenda Report pg. 1-5) (Emphasis Added) The Agenda Report staff discussion continues: “High-density housing that is achieved by a concentration of studio and 1- bedroom units is particularly encouraged. […] a maximum height limit of 50-75 feet (with setbacks incorporated above the second or third level) is consistent with good urban design practices for creating a pleasant space for pedestrians. […] The Architectural Review Commission (ARC) supported a building height limit between 55 and 60 feet.” […] Building height limits between 50 and 75 feet (with setbacks incorporated above the second or third level) will provide a comfortable sense of enclosure for pedestrians on the sidewalk.” (2/6/07 Agenda Report pg. 1-6) (Emphasis added) “Downtown should include many carefully located open places where people can rest and enjoy views of the surrounding hills. Downtown should include some outdoor spaces where people are completely separated from vehicle traffic, in addition to Mission Plaza. Opportunities include extensions of Mission Plaza, a few new plazas, and selected street closures.” (2/6/07 Agenda Report pg. 1-8) corridors from public places, including sidewalk-level views in the direction of street rights-of-way within the downtown core, from sidewalks along the perimeter of the downtown core area, and from public spaces established in the upper levels of new buildings.” (2/6/07 Agenda Report pg. 1-8) (Emphasis added) Project Statement Updated March 2017 S 35 Section 3.E: City Council’s G.P. Amendment Feb 6, 2007 (cont’) “Therefore, a strategy was recommended that would preserve important view “Views from public gathering places, in the direction of street rights-of-way, from sidewalks along the perimeter of the downtown core, and "new views" from the upper levels of new buildings will insure on-going access to hillside views downtown. (2/6/07 Agenda Report pg. 1-8 through 1-9) (Emphasis added) The staff report, in discussing LUE policy 4.16.4: Building Height, states: “This proposed policy amendment is intended to provide a moderate increase in building height limits from the current limit of 50 feet to a proposed limit of 60 feet. The proposed changes also clarify where, when and how buildings up to 75 feet tall may be developed in the downtown core area. The proposed policy language requires all buildings between 50 and 75 feet tall to meet multiple policy objectives so that decision makers can balance the diverse goals and policy objectives of the City's General Plan when making decisions on these projects.” (2/6/07 Agenda Report pg. 1-12) “A revision to Chapter 17.42 of the Zoning Regulations to establish new standards for the Downtown Commercial (C-D) Zone. The revisions would establish a Planning Commission Use Permit process for buildings between 60 and 75 feet tall. Use permits for these tall buildings could be approved if the proposed project is determined to be consistent with the General Plan. To insure General Plan consistency, the ordinance would include planning application requirements, required findings for approval, required project features and performance standards.” (2/6/07 Agenda Report pg. 1-25) “The proposed project involves changes to the City's General Plan, to be implemented by an amendment to the Zoning Regulations that would permit development of buildings between 50 and 75 feet tall in the downtown core area. The project is expected to improve the ability of property owners and developers to provide dwelling units in new buildings, as required by the Housing Element of the General Plan. The project also provides opportunities to insure that new buildings incorporate design amenities and maximize revenue producing land uses (such as retail stores, restaurants and hotels) that contribute to the economic health of the City by creating jobs and contributing to City revenues through increased sales tax and transient occupancy tax receipts.” (2/6/07 Agenda Report pg. 1-73) (Emphasis added) “a person doesn't go downtown to look at views. He goes downtown to experience a well landscaped, well-articulated downtown with vibrant buildings. The City has built 3 parking lots and the top floor is used for parking.” (2/6/07 Agenda Report pg. 1-107) (Emphasis added) “Project meets the City's definition of ‘affordable by design’” (2/6/07 Agenda Report pg. 1-110) Project Statement Updated March 2017 S 36 Section 3.E: City Council’s G.P. Amendment Feb 6, 2007 (cont’) “As John Mandeville notes in his August 1 memo to the Council, there may not actually be very many candidates for increased height in the downtown. However, the Downtown Association encourages the evolution of General Plan and Zoning Ordinance language in a way that allow Downtown to accommodate a growing population and compete for its retail base, using quality as the yardstick for acceptable intensification.” (2/6/07 Agenda Report pg. 1-117) The City Council adopted what is now the current version of height requirements for the Downtown Core, envisioning occasional and not pervasive four-story buildings. For going on 10 years now, property owners and project developers have assembled land and made plans for mixed-use projects considering these height allowances. This effort was found to be necessary to advance General Plan goals, among them workforce and Downtown housing, and tourism, including commercial and hotel uses. Now that the financial and real estate world line up to support such uses, it is critical to honor the hard work and planning foresight encompassed by this extensive 2006-2007 revision effort. With just a few more feet of height we can achieve the long-term vision of reintroducing not just much needed residency to downtown San Luis Obispo, but additional alternatives for hotel accommodations as explored further in Section 6 of this document. Project Statement Updated March 2017 S 37 Section 4 View of the Hills Project Statement Updated March 2017 S 38 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 39 Section 4: View of the Hills Existing Impact of Buildings on Views: Fact Versus Fiction There has been much discussion of the impact of multi-story buildings downtown on views of the “hillsides” or mountains. Groups opposed to downtown development in general regularly raise this argument. The City however, has specifically addressed this issue in the past and even currently. In actual practical effect, the existing trees and single or multi-story buildings screen views of "hillsides" (or provide views) without denigrating from the downtown experience. As many have remarked at recent hearings on downtown buildings, one doesn’t generally go downtown to see views of the mountains. This public sentiment was acknowledged in the 2006-2007 review of building height changes to the zoning ordinance and Land Use Element of the General Plan, along with the need to promote taller buildings for public policy reasons, including the provision of downtown housing and public space at ground level. Land Use Ordinance Updated to Meet Development Needs Land Use Ordinance Standards 4:13 and 4:16.4 used to provide a general rule that "New downtown development should respect views of the hills, framing rather than obscuring them" and "respect street level views of the hills". The City Staff and City Council, Planning Commission, Architectural Review Commission and Cultural Heritage Committee all found these provisions incompatible with downtown development and the addition of residential density through allowance of 4-story and higher buildings. The City Council therefore amended the Land Use Ordinance in 2007 to clarify that "view of the hillsides" should not be used as an argument to defeat taller buildings unless views are blocked from public plazas. Observing the potential conflicts between taller buildings and "preserving" unspecified "views", the City Council set in motion a series of workshops and hearings to elicit public and advisory body input. Many people testified at a City Council study session in May of 2006 in favor of taller buildings, including clarification that "views" of hillsides should not stop increased building height needed for housing and meeting pedestrian orientation and other goals. Former San Luis Obispo Mayor Ken Schwartz presented a letter of support at the 2006 City Council study session arguing for the height increase the City Council ultimately adopted. The minutes of that meeting state: "[Ken Schwartz] is in favor of modifying the height limitations to accommodate needs for the downtown." (Exhibit D, Attachment 1, page 1-16) Project Statement Updated March 2017 S 40 Section 4: View of the Hills (Cont’) Land Use Ordinance Updated to Meet Development Needs (cont’) Staff noted the reason for the amendments relating to view of the hills in its staff report for the February 6, 2007 City Council meeting. (Exhibit D, Page 1-7 to 1-8): "The policy amendments that are proposed are intended to clarify conflicts created by existing language that promotes view preservation at the sidewalk level within the downtown core area." The staff further notes that: "…a strategy was recommended that would preserve important view corridors from public paces, including sidewalk -level views in the direction of street rights-of-way within the downtown core area, and from public spaces established in the upper levels of new buildings." In making these policy changes, staff pointed out the following: "Public testimony has indicated that the majority of speakers ‘do not go downtown for the views’." The actions of the City in 2006-2007 were intended to balance the "efficient use of existing urban land" for housing in the "City's most intensely developed area" with views of hillsides from public gathering places, such as the Mission Plaza, in the direction of street rights of way, from sidewalks along the perimeter of the Downtown Core and "new views" from the upper levels of new buildings. We all know the powerful views from the tops of the City's parking structures. The "new views" show that the views of the hillsides are not restricted to street level in downtown. "Tall buildings" are encouraged in the 2007 amendments, with certain policy objectives. One such policy objectives is "publicly accessible, open viewing spaces at the upper levels". See City Staff Report for February 6, 2007 City Council meeting pp 8-10. Prior to City Council consideration of the view-clarifying language relating to building heights, the Cultural Heritage Committee voted 4-0 to amend the language in LUE Policy 4.13 and 4.16.4. The language endorsed by the CHC stated: "Use building design, street furniture and landscaping to provide a comfortable sense of enclosure for pedestrians on the sidewalk, while preserving hillside views from carefully located public open places, and encouraging public access to "new views". Project Statement Updated March 2017 S 41 Section 4: View of the Hills (Cont’) Land Use Ordinance Updated to Meet Development Needs (cont’) On February 6, 2007, the City Council acted on the recommendations of the Planning Commission, the Architectural Review Commission, the Cultural Heritage Committee and the City Staff to amend provisions of the Land Use Element to allow up to 75 foot buildings and also to clarify that "views of the hillsides" were not to interfere with this policy unless blocking views from public plazas. Land Use Ordinances 4:13 and 4:16.4 were amended in order to clarify that the "views of the hills" language should apply to public spaces and not to views generally. See strike- out in the City Council action of said date. (Exhibit D, Attachment 2) The City Council clarified that "In other locations downtown, views will be provided parallel to the street right-of-way, at intersections where building separation naturally makes more views available, and at upper level viewing decks”. The February 6, 2007 report notes the support of the ARC and CHC for modifying the view of the hills policies for downtown. The report further notes there are no scenic roads in the Downtown Core area, leaving protection of views of hillsides to public places such as Mission Plaza. (Exhibit D) In addition to the deck of 581 Higuera providing public access views of hillsides, the rooftop and wall gardens throughout the Project combine to make San Luis Square an vertically elegant expression of the amended Land Use Ordinances as detailed above. Figure 3: Rendering of a balmy sunset over Cerro San Luis as would be seen from the rooftop of The 581 Higuera building. This rooftop garden lounge would be accessible to public yet virtually “invisible” from the ground floor pedestrian level as it is set back several feet per feedback from various advisory bodies and community groups. Project Statement Updated March 2017 S 42 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 43 Section 5 Consistency with General Plan Policies & Zoning Ordinance Project Statement Updated March 2017 S 44 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 45 The Project’s consistency with the building height requirements in the zoning ordinance and General Plan policies is discussed below. Section 5.A: Consistency with G.P. & Zoning: Building Height Section 5 of this Project Statement provides the history of the City’s development of regulations encouraging taller, four story and higher buildings in the Downtown. In 2006, City Staff recommended and the City Council and ARC agreed that “increasing the allowable density, square footage, height and number of stories will improve the feasibility of developing housing in the downtown”, (Mandeville Council Agenda Report, 3-1406, page 10.) The General Plan, Zoning Regulations, Community Design Guidelines and Downtown Concept Plan were developed in light of this historical context to encourage increased building height in the Downtown Core. Land Use Circulation Element (LUCE) Policy 4.20.4 – Building Height (as amended), states as follows: 4.20.4 Building Height New buildings shall fit within the context and vertical scale of existing development, shall not obstruct respect views from, or sunlight to, publicly- owned gathering places such as Mission Plaza, and should be set stepped back above the second or third level to maintain a street façade that is consistent with the historic pattern of development. Generally, new buildings should not exceed 650 feet in height. Tall buildings (50-75 feet) shall be designed to achieve multiple policy objectives, including design amenities, housing and retail land uses, such as: a. Publicly accessible, open viewing spaces at the upper levels b. Housing affordability in excess of the Inclusionary Housing Requirement c. Energy efficiency beyond State mandated requirements d. Adaptive reuse of a historical resource in a manner consistent with the Secretary of the Interior’s Standards for Rehabilitation e. A major pedestrian connection between Higuera Street and the Creekwalk, Monterey Street and the Creekwalk, between Higuera Street and Marsh Street, or at another acceptable mid-block location f. e. High residential density (e.g. above 24 units per acre) achieved by a concentration of smaller dwelling units g. f. Street level features such as a public plaza, public seating and/or public art h.g. Provide midblock or other significant pedestrian connections i.h. Increased retail floor area, including multi-story retail j.i. Directly implements specific and identifiable City objectives, as set forth in the General Plan, the Conceptual Plan for the City’s Center, the Downtown Strategic Plan and other key policy documents j. Receiving Transfer of Development Credits for open space protection or historic preservation k. Proximity of housing to convenient transit connections (Emphasis added) Project Statement Updated March 2017 S 46 Section 5.A: Consistency with G.P. & Zoning: Building Height (cont’) The current Zoning Regulations (updated in 2014) specifically outline the policy objectives required to achieve building heights between 50-75 feet as follows: 17.42.020 Property development standards. C. Maximum height: Fifty feet (see also Sections 17.16.020 and 17.16.040). Additional building height up to seventy-five feet may be approved as provided under subsections (C)(1), (2), (3) and (4) of this section. 1. Performance Standards for Buildings Taller Than Fifty Feet (All Required). a. The project must include housing at a minimum residential density unit value of twenty-four units per acre. The average floor area of dwellings within the project shall be one thousand two hundred square feet or less. (Group housing projects must show that the proposed building meets or exceeds the population density that would otherwise be achieved by this standard.) b. For projects on sloping sites, the height limit on the downhill portion of the site shall be defined by a line seventy-five feet above the average between the highest and lowest points of the site grade prior to development, and seventy-five feet above the lowest point. c. The applicant shall demonstrate that: i. The project will exceed Title 24 California Energy Efficiency Requirements by a minimum of fifteen percent; or ii. The project is designed to achieve at least a Silver rating on the LEED-CS or NC checklist (or equivalent measure) (LEED certification is not required but is encouraged); or iii. The project is designed to achieve a minimum value of fifty points on the SLO green build multifamily greenpoint checklist. d. No more than thirty-three percent of the site area at the storefront level may be used for private parking facilities. e. Lots shall conform to the minimum size and dimension requirements provided in Title 16, Subdivisions. f. The planning commission may grant minor exceptions to the specific requirements listed in this section, subject to a planning commission use permit and provided a finding is made that, despite the exception, the project is consistent with the intent of this chapter and LUE Policy 4.16.4.2. The architectural review commission (ARC) may approve building height up to sixty feet if the ARC determines that the project includes at least two objectives from subsection (C)(3) of this section, with no two being from the same lettered subsection. The planning commission may approve a use permit allowing maximum building height of seventy-five feet upon determining that at least two of the following policy objectives (with no two being from the same lettered subsection) are met, and at least one affordable and workforce housing objective must be chosen. Project Statement Updated March 2017 S 47 Section 5.A: Consistency with G. P. & Zoning: Building Height (cont’) 17.42.020 Property development standards (cont’) (C )(1)(f) Continued To approve a use permit the planning commission must make the following finding: The public benefits associated with the project significantly outweigh any detrimental impacts from the additional height. (In weighing potential public benefits, the planning commission shall consider objectives related to affordable and workforce housing, economic vitality, historic preservation and open space preservation to be especially important.) (Emphasis Added) The buildings that make up San Luis Square vary between 54 and 59.5 feet tall. The downtown commercial zoning regulations allow for buildings up to 50 feet tall, and allow for additional building height up to 60 feet to be approved by the Architectural Review Commission as provided under section 17.42.020.C.2 of the San Luis Obispo Zoning Regulations. San Luis Square fulfills multiple City Policy Objectives, and its public benefits significantly outweigh any impacts or concerns caused by the additional height. 3. Policy Objectives. The intent of the following policy objectives is to ensure that buildings taller than fifty feet proposed in the C-D zone include features that meet the specific policy objectives outlined for tall buildings in the city’s general plan (including, but not limited to, Land Use Element Chapter 4.0). A variety of objectives are listed to ensure that proposed project features are appropriate for the site and surroundings, and to allow for a wide range of possible project types. Regardless of the number of objectives proposed, the decision- making body must determine that the overall project is consistent with the general plan, including goals and policies for view preservation, historical resource preservation, solar access and architectural character. […] (Emphasis added) Zoning Regulation Policy Objectives met include: 17.42.020.2a: “Affordable and Workforce Housing: The project includes residential density greater than or equal to 36 units per acre and the average floor area of units is 1,000 square feet or less.” (Emphasis added) San Luis Square has a unit mix of 63 units which more than exceeds the requirement of 36 units per acre. The average floor area of the units at San Luis Square is 573 S.F., which fulfills this policy objective. Project Statement Updated March 2017 S 48 Section 5.A: Consistency with G. P. & Zoning: Building Height (cont’) 17.42.020 Property development standards (cont’) 17.42.020.2b: “Pedestrian Amenities: The project provides a major pedestrian connection between Higuera Street and the Creekwalk, Monterey Street and the Creekwalk, Higuera Street and Marsh Street, or at another acceptable mid-block location… The project incorporates a significant public plaza, where the public art requirement is met by providing the art on- site.” (no in-lieu fee option) (Emphasis added) San Luis Square provides a major pedestrian connection between Marsh and Higuera streets with a large paseo and central plaza. A connection between the San Luis Square paseo and the Coast National Bank property is also proposed, providing an additional mid-block connection opportunity. In addition, the applicant has offered to the City to provide funding to help improve current conditions of the Jack House, enhancing the pedestrian connection to a public park. Paseo amenities will include benches, bike parking, landscaping, decorative lighting, outdoor eating areas, interactive signage, pedestrianization of street level businesses and public spaces, and a public art sculpture near the center of the plaza. 17.42.020.2c: “View Access and Preservation: The project provides a public viewing deck to provide significant free public access to views of surrounding natural features such as, but not limited to, Cerro San Luis.” (Emphasis added) The rooftop lounge on the 581 Higuera building will provide a public deck with views of Cerro San Luis Obispo mountain as well as the surrounding nearby landscape. The Project improves and dedicates land within the Downtown Core for publicly owned open space with street-level views of hillside resources, consistent with this zoning development standard as well as Land Use Element Policy 4.7 and Program 4.20. Project Statement Updated March 2017 S 49 Section 5.A: Consistency with G. P. & Zoning: Building Height (cont’) 17.42.020 Property development standards (cont’) 17.42.020.2h: “Other Policy Objectives: The project directly implements specific and identifiable City Objectives as set forth in the General Plan, the Conceptual Plan for the City’s Center, the Downtown Strategic Plan or other key policy document, to the approval of the Planning Commission.” The public paseo, the connections it provides, and all its amenities are in line with City objectives from both the General Plan as well as the Conceptual Plan for the City’s Center. This Project satisfies the policy objectives bolded above; therefore, at a minimum, it would follow logic that the ARC would approve up to 60 feet per this section (and up to 75 feet with Planning Commission approval, if sought). Community Design Guidelines The Project is also consistent with the Community Design Guidelines, including promotion of mixed use and entranced pedestrian experience. The policies contained in the Zoning Regulations and Land Use Element were incorporated into the Community Design Guidelines by Ordinance update in November of 2007. Specifically, Chapter 4, section 4.2 (B)(2) of the Community Design Guidelines states as follows: “Tall buildings (between 50 and 75 feet) shall be designed to achieve multiple policy objectives, including design amenities, housing and retail land uses.” (Emphasis added) Section 4.2 (B)(1)(d) calls for the following: “The project provides upper story setbacks from the front building façade along the street consistent with LUE Policy 4.16.4. Portions of the building above 50 feet should be set back sufficiently so that these upper building walls are not visible to pedestrians on the sidewalk along the building’s frontage.” (Emphasis added) The current Project design enriches the pedestrian experience by providing the suggested setbacks for all three buildings, rendering the upper floors virtually “invisible” from the ground floor and is exemplary of how San Luis Square is fundamentally aligned with the Community Design Guidelines with respect to building height and scale. Project Statement Updated March 2017 S 50 Section 5.B: Consistency with G.P. & Zoning: Housing & Density Housing Element The City’s Housing Element is replete with programs and policies aimed at increased density in the Downtown Core. When considering excerpts of any of the General Plan elements, it is beneficial to revisit the definitions of what constitutes a goal, policy and program. Section 3.20 of the November 2014 revision to the Housing Element defines these terms as follows: Goals Policies Programs “Goals are the desired results that the City will attempt to reach over the long term. They are general expressions of community values or preferred end states, and therefore, are abstract in nature and are rarely fully attained. While it may not be possible to attain all goals during this element’s planning period, they will, nonetheless, be the basis for City policies and actions during this period.” “Policies are specific statements that will guide decision-making. Policies serve as the directives to developers, builders, design professionals, decision makers and others who will initiate or review new development projects. Some policies stand alone as directives, but others require that additional actions be taken. These additional actions are listed under the “programs” below. Most policies have a time frame that fits within this Element’s planning period. In this context, “shall” means the policy is mandatory; “should” or “will” indicate the policy should be followed unless there are compelling or contradictory reasons to do otherwise.” (Emphasis added) “Programs are the core of the City’s housing strategy. These include on-going programs, procedural changes, general plan changes, rezonings or other actions that help achieve housing goals. Programs translate goals and policies into actions.” Project Statement Updated March 2017 S 51 Section 5.B: Consistency with G.P. & Zoning: Housing & Density (cont’) Housing Element (cont’) Listed below are the goals, policies and programs that support and encourage increased density in the Downtown Core: Goal 5.3 of the Housing Element states the City will “Encourage the development of housing above ground-level retail stores and offices to provide housing opportunities close to activity centers and to use land efficiently.” (Emphasis added) Policy 6.8 of the Housing Element states “Consistent with the City’s goal to stimulate higher density infill where appropriate in the Downtown Core (C-D Zone), the City shall consider changes to the Zoning Regulations that would allow for the development of smaller apartments and efficiency units.” (Emphasis added) Policy 6.9 of the Housing Element goes on to state that in order “To help the Quantified Objectives, the City will support residential infill development and promote higher density where appropriate.” (Emphasis added) Program 3.10 of the Housing Element states [the City will] “Continue to encourage the creation of dwellings in the Downtown Core (C-D Zone) and the Downtown Planning Area by continuing the ‘no net loss’ program, consistent with Chapter 17.86 (Downtown Housing Conversion Regulations) of the Zoning Regulations.” (Emphasis added) Program 6.13 of the Housing Element goes on to state the City “Continue to develop incentives to encourage additional housing in the Downtown Core (C- D Zone), particularly mixed-use developments. Density based on average unit size in a project should be explored to encourage the development of smaller efficiency units. (Emphasis added) Program 6.27 of the Housing Element calls on the City to “Evaluate and consider increasing the residential density allowed in the […] Downtown Commercial (CD) zoning districts. The city will evaluate allowing up to 24 units per acre in the CN and O zones, and up to 72 units per acre in the CD zone, twice the current density allowed in these areas.” (Emphasis added) Project Statement Updated March 2017 S 52 Section 5.B: Consistency with G.P. & Zoning: Housing & Density (cont’) Housing Element (cont’) Appendix C of the Housing Element (Housing Constraints and Resources) contains a provision under Section 1 (b) entitled Mixed Residential and Commercial Uses, which states as follows: “Mixing residential and commercial uses is encouraged to promote housing development close to jobs and employment centers, to exploit affordable infill housing opportunities and to promote a compact, pedestrian and transit-friendly urban structure. Mixed-use projects are allowed by right in all commercial zones except Service- Commercial and Manufacturing zones, which require Planning Commission approval…. Program 6.11 calls for additional incentives to encourage mixed-use developments in the Downtown Core, including flexible density, use, and height or parking incentives.” (Housing Element, Appendix C, Section 1b), Page C-6, “Mixed Residential and Commercial Uses) (Emphasis added) Land Use and Circulation Element Update (2014) The Land Use and Circulation Element (LUCE) update approved in December of 2014 demonstrates the City’s renewed commitment to increased density and infill development in the Downtown Core. Policy 2.2.1 – Mixed Uses and Convenience (as amended), states: “The City shall promote a mix of compatible uses in neighborhoods to serve the daily needs of nearby residents, including schools, parks, churches, and convenience retail stores. Neighborhood shopping and services should be available within about one mile of all dwellings. When nonresidential, neighborhood-serving uses are developed, existing housing shall be preserved and new housing added where possible. If existing dwellings are removed for such uses, the development shall include replacement dwellings (no net loss of residential units).“ (Emphasis added) Policy 4.20.2- Upper Floor Dwellings, states: “existing residential uses shall be preserved and new ones encouraged above the street level.” (Emphasis added) Program 4.28 – Allowing Efficiency Units and Variable Density in Downtown, was added and states: “the City shall modify zoning regulations to allow efficiency units and variable density in the Downtown Core.” (Emphasis added) Project Statement Updated March 2017 S 53 Section 5.B: Consistency with G.P. & Zoning: Housing & Density (cont’) Housing Element (cont’) Zoning Regulations The Zoning Regulations allow a density of 36 dwelling units per acre in the C-D Zone. With an overall Project acreage of 0.9797, the San Luis Square project meets this development standard. The proposed FAR would be 2.60, consistent with the allowed FAR of 3.75 in theC-D Zone. Zoning Regulations and Extended Stay Hotel The City’s Zoning Regulations do not differentiate between short-term and long-term extended stay hotels which may have different designs and amenities to meet their patrons’ needs. However, in practice many hotels in the city offer long term stays (i.e. longer than 30 days). The City’s Municipal Code also provides a definition for “hotel” in relation to the uniform transient occupancy tax ordinance (SLOMC Chapter 3.04). This definition states that hotels are structures designed for occupancy by transients*, and “transients” are defined as any person who is entitled to occupancy for a period of 30 consecutive days or less*. This would imply that at the time a guest stays in a hotel for longer than 30 days, they are no longer considered a transient, and therefore would be considered a resident living in a unit that is subject to the use regulations and density limits of the Zoning Regulations. In addition, when a hotel room is occupied for more than 30 days, the ordinance provides for an exemption from the otherwise applicable Transient Occupancy Tax (TOT). In Keeping with the residential density standards for the C-D (Downtown Commercial) zone, the number of rooms used for guests who stay longer than 30 days must be consistent with the residential density provisions for the C-D zone. Residential density requirements would also apply to any possible conversion is the spaces into permanent residences, as well as use of the hotel rooms for long stays (longer than 30 days). Based on the size of the property and the residential density regulations of the C-D zone, the total number of hotel rooms in the Project that can be occupied for longer than 30 days at any one time is zero. Thus all hotel rooms will be for stays less than 30 days. Thus, “extended” stay for the proposed hotel is directed at stays of 2 to 30 days (max). Project Statement Updated March 2017 S 54 Section 5.C: Consistency with G.P. & Zoning: Importance & Support of Tourism to San Luis Obispo as Reflected in General Plan The Project includes a hotel component of 36 rooms, designed for short term and extended stays of between two and thirty days. These rooms fit a need in the City for business, tourist, and Cal Poly-related visitors. This use is consistent with City goals and policies. As cited by the 2016 Central Coast Economic Forecast, the region in recent years has been enjoying a steady albeit slow recovery from the 2008-9 severe economic downturn (commonly referred to as “The Great Recession”) via the creation of new job opportunities springing from record growth in the hospitality sector as well as the steadying effect of the major employers being primarily the various governmental entities domiciled in the region. The City of San Luis Obispo serves as the commercial, cultural and governmental hub for the County of San Luis Obispo and as such enjoys diverse revenue sources. The top three strongest of these revenue sources are: Sales Taxes, Property Taxes and Transient Occupancy Taxes (TOT) -all of which significantly exceed the per capita average for the County. Since 2010, the TOT has steadily increased every fiscal year such that the most recent fiscal 2015-2016 year saw an impressive intake of over $7.1 million dollars. This represents a 52.32% increase since The Great Recession of 2008-9. To further iterate the importance of the hospitality industry’s impact on region, City Council saw the wisdom to include it in the General Plan as reflected in the Land Use Element in the following policies: Land Use Element (LUE Policy) 3.6.1 – Basis for Tourism (as amended), has been added and states: “The City shall promote San Luis Obispo as an attractive place for short-term stays, as well as an attractive destination for long-term visitors featuring its community character, natural qualities, historic resources and its educational and cultural facilities. The City should emphasize conference and visitor-serving facilities which have a low impact upon the environment and upon existing land forms and landscapes, and which provide low-impact activities and low-impact means of transportation.” (Emphasis added) Policy 3.6.2- Locations, states: “The City shall encourage integration of visitor-serving uses with other types of uses, including overnight accommodations Downtown, near the airport, and near the train station; small-scale facilities (such as hostels or bed-and-breakfast places) may be located in Medium-High Density Residential and High-Density Residential Districts, where compatible. Visitor-serving uses are especially appropriate where such uses have already concentrated: along upper Monterey Project Statement Updated March 2017 S 55 Section 5.C: Consistency with G.P. & Zoning: Importance & Support of Tourism to San Luis Obispo as Reflected in General Plan (cont’) Street; at Madonna Road area; at certain freeway interchanges; and in the Downtown.” (Emphasis added) As cited elsewhere in this Project Statement, the Downtown Core is seen as the focal point around which the rest of the region pivots for supporting and encouraging tourism. Section 4 of the Land Use Element further expounds upon this concept: Policy 4.1 -Downtown’s Role “Downtown is the community’s urban center serving as the cultural, social, entertainment and political center of the City for its residents, as well as home for those who live in its historic neighborhoods. The City wants its urban core to be economically healthy, and realizes that private and public investments in the Downtown support each other. Downtown should also provide a wide variety of professional and government services, serving the region as well as the city. The commercial core is a preferred location for retail uses that are suitable for pedestrian access, off-site parking and compact building spaces. Civic, cultural and commercial portions of Downtown should be a major tourist destination. Downtown’s visitor appeal should be based on natural, historical and cultural features, retail services, entertainment and numerous and varied visitor accommodations.” (Emphasis added) The Project seeks to fulfill upon the direction expressed in the LUE of creating a living community that is vibrant with plentiful and safe public spaces as outlined in policy 4.2 below: Policy 4.2 -Downtown Residential “Downtown is not only a commercial district, but also a neighborhood. Its residential uses contribute to the character of the area, allow a 24-hour presence which enhances security and help the balance between jobs and housing in the community.” (Emphasis added) Policy 4.2.1 Existing and New Dwellings “The City shall use the following when evaluating development in the Downtown area: (a) Existing residential uses within and around the commercial core should be protected, and new ones should be developed. (b) Dwellings should be provided for a variety of households. (c) Dwellings should be interspersed with commercial uses. (d) All new, large commercial projects should include residential uses.” (Emphasis added) Project Statement Updated March 2017 S 56 Section 5.D: Consistency with G.P. & Zoning: Pedestrian Orientation Feasibility of Paseos Several City policies encourage pedestrian walkability, including mid-block walk-ways known as “paseos”. The former City Community Development Director John Mandeville recognized that while the assemblage of demolition properties was necessary in order to achieve the objectives of pedestrian orientated buildings and open space, the scarcity of assembled land and improbability of assembling land in downtown made it very challenging and limited. Real questions here are: How many opportunities exist to re- create the success of Court Street and The Downtown Centre projects in our downtown? As the City slowly grows and more options become available to us as a community, where might they belong? The applicant has been able to identify a few locations in which it may be feasible to achieve access between Higuera and Marsh streets within the greater downtown corridor (see below). It has acquired two of these locations and has included them within the San Luis Square project. One of those (listed as “Paseo Possibility #2”), is the former Shell gas station site which has been partially assembled by NKT Commercial, LLC but its larger ambition for a mixed use project has been recently shelved. Downtown Paseo Possibility #1 Starting at the most northerly possibility, the applicant identified the “Rossi Bank of America” parcel located at Santa Rosa, Marsh and Higuera as a potential location for a paseo connection, however the construction of the Mangano Homes “Brownstones”, makes the pedestrian connection unlikely, if not impossible. Downtown Paseo Possibility #2 The former Shell gas station site and adjoining properties could create a pedestrian connection between Marsh and Higuera by assembling three moderately developed parcels owned by several very sophisticated San Luis Obispo developers and landowners. The County Council recently voted 5-0 to allow this application up to 75 feet to proceed but the project has been shelved. A less ambitious commercial project is approved. It is worth noting that pedestrian connectivity is not part of the existing approval. Downtown Paseo Possibility #3 The third possible link is located just south of the parcels described above, between the new Heritage Oaks Bank Site, and the former First Bank site. There is a possible connection to be made here, but with the expansion of the Granada Hotel, and the recent renovation Heritage Oaks Bank made on its property, and Union Bank’s lack of motivation to move or sell its parcel, that connection seems unrealistic or at the very least highly unlikely. Downtown Paseo Possibility #4 The last link the applicant found as a target site for a possible linkage is the Coast National Bank parcels, which the San Luis Square principals now own. The applicant sees this as an underdeveloped area, and thus it has acquired the property in order to bring the City yet another Marsh to Higuera link in the near future. Project Statement Updated March 2017 S 57 Section 5.D: Current General Plan: Pedestrian Orientation (cont’) The applicant takes a position that the most realistic links the City has are right here as proposed, south of Nipomo and are contained within the San Luis Square project and the Project proponents Coast Bank project. Both would connect to the Jack House Park. The creation of pedestrian linkages and amenities is encouraged by the Land Use Element document as cited below: Land Use Element (LUE Policy) 2.2.4 – Neighborhood Characteristics (i.e. amenities) (as amended), has been added and states: The City shall provide all areas with a pattern of streets, pedestrian network, and bicycle facilities pattern that promotes neighborhood and community cohesiveness. There should be continuous sidewalks or paths of adequate width, connecting neighborhoods with each other and with public and commercial services and public open space to provide continuous pedestrian paths throughout the city. Connectivity to nearby community facilities (such as parks and schools), open space, and supporting commercial areas shall also be enhanced, but shall not be done in a method that would increase cut-through traffic. LUE Policy 2.2.6 – Neighborhood Characteristics (i.e. amenities) (as amended), has been added and states: “The City shall promote livability and safety for all residents. Characteristics of quality neighborhoods vary from neighborhood to neighborhood, but often include one or more of the following characteristics: • A mix of housing type styles, density, and affordability. • Design and circulation features that create and maintain a pedestrian scale. • Nearby services and facilities including schools, parks, retail (e.g., grocery store, drug store), restaurants and cafes, and community centers or other public facilities. (Emphasis Added) LUCE Program 4.31 – Inventory of Downtown Uses, was added in 2014 and states as follows: “The City shall prepare an inventory of uses in the Downtown Core. Particular attention shall be given to identifying uses at the street level as these uses directly impact the pedestrian experience and vibrancy of the Downtown. This information shall be used to target business support and attraction to achieve a desirable mix of uses in the Downtown.” (Emphasis added) San Luis Square is designed to accommodate the City’s preference to enhance the pedestrian experience. It sacrifices significant ground floor footprint to achieve these goals and the design element of increased height is what makes the pedestrian experience possible at not just the ground floor but at elevated levels heights as well. (refer to figure 4) Residents and hotel guests will be a big part of this pedestrian fabric. Project Statement Updated March 2017 S 58 Section 5.D: Current General Plan: Pedestrian Orientation (cont’) Pedestrian Access & Amenities The Project has dedicated a significant amount of developable retail and residential square footage to increase the pedestrian access and amenities for the benefit of the public by providing substantial pedestrian linkages, public art and amenities as depicted on the conceptual designs currently being presented before the Architectural Review Commission for final review and approval. As a result, the applicant is proposing the creation of two paseos by providing pedestrian connections between Nipomo, Marsh and Higuera streets and the Jack House Gardens. (Refer to Figure 4 below) The 581 Higuera building alone sacrifices a significant amount of residential space on the second and third floors as well as significant ground floor retail space including 2,289 S.F. to provide a covered patio dining area for patrons to enhance the cultural landscape of the Project and pedestrianize the paseo experience for all. Figure 4: Above graphic illustrates how nearly 40% of San Luis Square is dedicated to Public Space, which is notably more than other similar developments (Court Street & Downtown Center). Project Statement Updated March 2017 S 59 Section 5.D: Consistency with G.P. & Zoning: Pedestrian Orientation (cont’) Pedestrian Access & Amenities (cont’) The Project’s circulation, access, parking and public open spaces & plazas provide an example of good planning principles offering a tremendous community benefit (and all part of the policy objectives required to achieve building height between 50-75 feet). The applicant could simply build at maximum lot coverage, however, that would not serve to respect the Jack House or the character and cultural landscape of the Downtown Core. As part of the developer’s “good neighbor policy”, the developer has offered to the City of San Luis Obispo to financially underwrite landscaping improvements for the Jack House public gardens, increasing a quality pedestrian experience. Comparison if Pedestrian Access & Amenities The amenities provided by San Luis Square are best appreciated when compared to similar developments that already exist in the Downtown Core; specifically, Downtown Centre and Court Street. While vibrant in their own right, Downtown Centre and Court Street provide only three and two points of connection respectively. Upon further examination, the two access points provided by Court Street from Higuera to Monterey is bifurcated: one access at grade (street level), one access above grade (via stairs) but this development provides no lateral access at grade. Figure 5: Above graphics are comparative illustrations of the Public Space provided by Court Street and Downtown Centre as compared to San Luis Square’s 40%. Project Statement Updated March 2017 S 60 Section 5.D: Consistency with G.P. & Zoning: Pedestrian Orientation (cont’) Comparison if Pedestrian Access & Amenities (cont’) The recently greenlighted Garden Street Terrace project attempted to provide access in multiple directions but ultimately was unable to achieve this. Residents and hotel guests of San Luis Obipso love the flow of the two currently built Downtown Centre and Court Street projects from a pedestrian point of view. While the applicant believes Garden Street Terraces will be a success, the applicant wanted to provide the City and people of San Luis Obispo with something very special that has never been done before. Figure 6: The recently greenlighted Garden Street Terrace project attempted to provide access in multiple directions but ultimately was unable to achieve this. The applicant and designers believe that having four links (or point of connection) in and out of the Project will create a pedestrian experience that, combined with other pedestrian amenities (such as covered terraces, eco-friendly design elements, views of the hills from roof top public space, wind protected paseos, deluxe bicycle stations, easy access to public transportation, public art, an integrative greenscape, public gathering area and park benches), the applicant believes this creates a unique space for all to love and enjoy for decades to come. If the Jack House pedestrian linkage is developed as is being offered by the applicants, the pedestrian fabric will be enriched further. Project Statement Updated March 2017 S 61 Section 5.E: Current General Plan: Parking As the City and its advisory bodies are most certainly aware, parking downtown is a significant concern not just for retail uses, but particularly when considering an ever- increasing residential density. Many downtown retailers complain of the scarcity, cost and a lack of proximity of parking to commercial/retail uses and its effect on circulation and growth of current and future consumer spending in the Downtown Core. The applicant will provide substantial on-site parking, thereby reducing and possibly eliminating any burden on City infrastructure. The applicant’s parking design provides much needed on-site underground parking for the residents, commercial tenants and the general public, which will be a first for the Downtown Core. The need for parking at this site is substantial and apparent. Since the applicant has acquired the property, it is nearly impossible to find a parking spot on any given day on its unoccupied properties as evidenced by the photograph below. Figure 7: Disheveled parking situation immediately following the closure of Foster's Freeze in late 2014. This is evidence of the pent-up demand for publicly accessible parking in the downtown corridor. (In mid-2015, this property was closed off to public access shortly after this photo was taken.) Special care has been given to ensure the Project’s parking structure will be maximized as a resource and benefit for all who patronize it, from electrical vehicle charging stations to flex hour shared parking arrangements. Not only will the Project’s proposed added parking (136 spaces) increase the economic vitality of the Downtown Core by encouraging increased commercial and retail traffic further south into the Downtown Core, but it will provide relief for the existing residents of the surrounding neighborhood who currently must contend with being “crowded out” by members of the public who illegally park or usurp spaces intended for personal residences. Project Statement Updated March 2017 S 62 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 63 Section 6 Economic Vitality and Downtown Projects Project Statement Updated March 2017 S 64 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 65 Section 6: Economic Vitality and Other Downtown Projects Even though the San Luis Obispo Downtown Association lists Beach Street as the southernmost boundary on its map of what the association considers to be the Downtown Core, it is commonly understood in both the development and downtown community that the terminus of the Downtown Core has historically been located at Nipomo Street. The City understands that something dynamic is required to help pull the Downtown Core south of Nipomo Street. The Project under consideration before you has the ability to attract pedestrian traffic through its anticipated retail tenants, as well as its access to public amenities and mid- block paseos at Nipomo. The applicant is endeavoring to provide potential access to the Jack House which will bridge the current gap in pedestrian access and finalize the vision established in the Downtown Conceptual Plan (1993) (see figure 6 below) for up to 100 additional downtown residents. (Exhibit A) Figure 8: 1993 Downtown Conceptual Plan, enlarged to focus on area bound by Higuera, Nipomo & Marsh streets (clockwise) The San Luis Square project will provide enough retail and public open space experiences to extend the pedestrian fabric of our downtown community. Not only will the Project be a magnet for pedestrian traffic south of Nipomo, it will also invite the public flowing off from Highway 101 onto Marsh Street to focus on “downtown” before they reach Nipomo Street. The onsite underground parking garage will provide pedestrians and shoppers an alternative location for parking that will help southern Higuera and Marsh Street retailers benefit from additional prospective customers as well as significantly increase the publicity profile the Jack House public gardens. The City Staff discussion in the 2/6/07 Agenda Report shares the applicant’s concern for the economic vitality of the downtown region. The agenda report states in relevant part: “The economic benefits of redevelopment in downtown areas and the effect of height limits are evaluated in a memo written by the City's economic consultant, Allen D. Kotin (Attachment 8). Allowing taller buildings could infuse the downtown core with additional residents, adding to the vitality of the commercial district. As stated in the Community Design Guidelines, ‘multi- story buildings can increase the numbers of potential customers for ground floor retail uses and assist in maintaining their viability.’” (Exhibit D, 2/6/07 Agenda Report pg. 1-5) (Emphasis added) Project Statement Updated March 2017 S 66 Section 6.A: Similar Structures In the History of San Luis Obispo Contrary to some popular belief, San Luis Obispo has a history of tall buildings with densities higher than present zoning within what is now called for in the Downtown Core, many of which are no longer standing. Thankfully, some taller buildings still remain, such as the Anderson Hotel (pictured below). As in current times, many of these edifices were built in response to times of workforce housing shortages, a pent-up demand for commercial space and a population expanding quicker than trends could catch up. Figure 9: The Ramona Hotel opened on October 3, 1888 and hailed in at four stories tall. The landmark disappeared on November 10, 1905 when an early morning kitchen fire spread throughout the structure; remarkably none of the 250 guests were injured. The Ramona Hotel is a prime example of impressive historic buildings in the downtown region of San Luis Obispo. The building covered the entire block between Higuera and Marsh Streets and fronted Essex Street (now Johnson Avenue). The Hotel had its own railroad spur, a saloon, ballroom, several drawing rooms and a dining room that was 60’ x 80’ feet with a 24-foot ceiling. Noted guests included President William McKinley who spoke from the balcony during a whistle stop tour of the west coast. Figure 10: The Elks Theatre opened in 1921 and was located at the corner of Marsh and Morro Streets where Heritage Oaks Bank currently stands today (photo right). Also known as “The Elmo Theatre” (shortened from an earlier theatre name in San Luis Obispo, the “El Monterey”) was part of a larger building that was owned by the B.P.O.E./Elks in San Luis Obispo. Project Statement Updated March 2017 S 67 Section 6.A: Similar Structures In the History of San Luis Obispo (cont’) Figure 11: An early photograph of 846 Higuera Street commonly known as “The Tower Building” or more formerly as the HM Warden, Jr. Building was built by local businessman Horatio Moore Warden 1904. The majestic 72 foot rooftop clock tower and steeple can be seen in the background on the right side of this photograph. In 1925 a devastating earthquake hit Santa Barbara and caused local San Luis Obispo residents to question the architectural stability of many of their own city’s buildings. As a result, the steeple portion of the building was removed but the clock portion was retained as seen in Figure 10 below. Figure 12: What remained of the clock tower (seen above) was removed in 1955 after years of storefront remodels had compromised the structural integrity of Warden Building and caused the tower to cant forward. Project Statement Updated March 2017 S 68 Section 6.B Nearby Similar Existing Structures, Approved Projects and Future Projects There are a number of existing, recently approved or pending projects that respond to City Council direction and the increasing demand for downtown housing. With a wide range in uses, building styles, unit mixes and locations, the following examples bespeak to a downtown sector that is wanting to remain current, relevant and alive. Section 6.B.i.: Downtown Structures with Comparable Height When looking at existing downtown properties with comparable height, the Anderson Hotel provides numerous Single Residency Occupancy units and has historically provided a downtown residential asset, with a height of up to 90 feet. (also refer to Figure 1 as previously cited on page 27 and figure 13 on page 66) Figure 13: The Anderson Hotel as seen in 1955 looking southbound on Higuera Street. Project Statement Updated March 2017 S 69 Section 6.B.i.: Downtown Structures with Comparable Height (cont’) A notable and recently built example of construction on a similar parcel is the County Government Center Project at 1055 Monterey Street. This four-story building was constructed in 2006 at 62 feet in height in the downtown, directly adjacent to the historic Fremont Theater. (see Figure 12 below) The County Government Center project consists of a one-acre site, a lot size comparable to San Luis Square. . Figure 14: San Luis Obispo County Government Center (2006), 1055 Monterey Street, has a roof height of 52 feet with a 62 foot height at the parapet. The County building is essentially constructed lot line to lot line with very little pedestrian passageways or building articulation. By contrast, San Luis Square has taken a similar sized property, pedestrianized it with a significant breaking up of massing, inclusion of paseos and other amenities, all the while including a significant number of downtown residential units. Project Statement Updated March 2017 S 70 Section 6.B.i.: Downtown Structures with Comparable Height (cont’) The height and architecture of other existing buildings are graphically illustrated below: Figure 15: Graphic side-by-side comparison of existing structure heights of significance within the greater downtown San Luis Obispo area Project Statement Updated March 2017 S 71 Section 6.B.i.: Downtown Structures with Comparable Height (cont’) Only a few downtown properties exist with which to achieve the City’s documented goals for pedestrian orientation and upper floor residential. As stated by former Director of Community Development, John Mandeville, “future redevelopment potential [of downtown] is actually quite limited …there are relatively few sites available for development.” (Staff Report to City Council Study Session, 3/14/06, p1-1) The City has clearly indicated there is room for this kind of development in very few areas of the Downtown Core. Due to the City’s historic protection of most buildings north of Nipomo and south of Santa Rosa, that part of our downtown will quite frankly never grow with substantial mixed-use development. There are only a few key sites that could achieve the kind of project we are proposing to develop and build. The confluence of effort, financial strength, and genuine luck to get these properties consolidated for development is a very unlikely event yet exists as an opportunity to meet these worthy objectives. In short, we need to take full advantage of the opportunity the San Luis Square applicant is presenting. Project Statement Updated March 2017 S 72 Section 6.B.ii. Approved Projects In Development with Comparable Height More recent residential mixed-use projects under consideration or in various stages of approval and/or construction include: Monterey Place Figure 16: Concept Illustration for Monterey Place (located on Monterey Street in between Nipomo and Broad streets) was approved with a height in excess of 50’ above pedestrian areas. Highlights of project: • 23 residential units were approved which average 1,350 square feet in size. • Pedestrians walking along the creek path can expect the adjacent building elevations to rise between 55 - 64+ feet above them as they approach from San Luis Creek. • Although the lower basement level is not counted against FAR, the project uses the natural grade to effectively obtain 5 stories of approved development along the creek and wholly within the Downtown Historic District. The Monterey Place project is the most recent example of a 2012 approval that best supports and closely aligns with the design objectives and pedestrian scale of the San Luis Square project. These structures were creatively packaged five-story buildings with pedestrian scaling at over 64 feet. The ARC commissioners serving on the advisory body approved the Monterey project and staff cited that the project was: “Consistent with CDG, Land Use Element goals, and C-D zone development standards, the proposed Monterey Place is an ambitious and intensive project with buildings that contain floor spaces on up to five levels…” (4/16/12 ARC Staff Report, Conceptual Review, page 7) (Emphasis Added) Project Statement Updated March 2017 S 73 Section 6.B.ii. Approved Projects In Development with Comparable Height (cont’) Hotel Serra & Garden Street Terraces Figure 17: Rendering of Garden Street Terrace project as approved. While a noteworthy project promising many benefits to the community, it unfortunately has faced many challenges. Challenges, that the proponents for San Luis Square have been careful to anticipate and avoid. Originally this project was approved at a height of over 60 feet. Due to many economic circumstances, a revaluation of project costs, and the developer’s inability to retain financing or consolidate critical properties, this project suffered from significant changes and its height was reduced and resubmitted at 51’ 4”. City Council approved the project at 50’ and four stories. Project Statement Updated March 2017 S 74 Section 6.B.ii. Approved Projects In Development with Comparable Height (cont’) Chinatown Figure 18A & B: Elevations showing the height of the Chinatown project in the context of the surrounding architectural landscape as it relates to the natural grade of the region. Due to smart design, the virtual impact of this four story structure is minimized from the pedestrian level much in the same way San Luis Square is using similar technique. Chinatown was approved at four stories, stepped back along its Palm and Monterey Street facades. “Although the proposed hotel located in Building A at the corner of Palm and Morro streets would be up to four stories in height fronting the internal pedestrian walkway system, the Palm Street frontage would be three stories above the ground level of the adjacent street, with maximum elevations of up to 50 feet.” (Emphasis added) (EIR addendum (Sept. 2009)) In comparison, the San Luis Square project proposes an even more withdrawn fourth story (stepped back on ALL sides at street level) in order to remain compatible with the cultural landscape of the surrounding neighborhood. The buildings fully comply with the Downtown Design Guideline objectives with respect to pedestrian visibility, shading and building height to street width ratio as per Design and Development Guidelines Section 4.2 Project Statement Updated March 2017 S 75 Section 6.B.ii. Approved Projects In Development with Comparable Height (cont’) Granada Hotel Expansion Heralding at heights between 46’ to 60’, this mid-block infill project is a good example of classic historic architecture successfully paired with a contemporary designed taller building on the same plot as a means to maintain the economic viability of the overall development and region. Figure 19: 3D & 2D renderings of the Granada Hotel Expansion located at 1128 Morro Street. The plot of land that this project is located on had been underutilized for years as a single level (at grade) parking lot. The Granada Hotel Expansion serves to reconfigure this space and maximize the density as called for in the updated Land Use Element as detailed previously in response to the growing needs of the City. This same forward thinking in urban design is mirrored in San Luis Square by maximizing severely underdeveloped parking lots and transforming them into City assets through innovative human scale, ecological connections, public plazas and fruition of the Downtown Concept Plan. Project Statement Updated March 2017 S 76 Section 6.B.ii. Approved Projects In Development with Comparable Height (cont’) SouthTown 18 (aka: 560 Higuera St) After multiple reviews and a redesign, SouthTown 18 is one of the most recent projects to be approved as a four story mixed-use building with 18 residential units and a small 68 S.F. commercial space. The eventual unanimous (4:0) approval was granted by the ARC on October 17, 2017. Figure 20: Multiple renderings of the recently approved SouthTown 18 project located at 560 Higuera. Situated on a site of only 0.39 acres, this location faced a number of challenges including easements with neighboring properties on either side as well as the Creek Walk. Developers were able to successfully maximize their compatibility through working with the ARC and Staff. SouthTown 18 then successfully withstood an appeal challenge before the City Council on January 17, 2017. This victory was due in large part because the developer had worked with Staff following design direction from the advisory bodies while listening to the concerns of the neighbors while still fulfilling on the Community Design Guidelines. During the appeal hearing councilmember Christensen cited that this project (and projects like it) were in direct response to the LUCE update and the stakeholders’ demand for more housing. And while such projects may be placed under scrutiny during this “transitionary period”, councilmember Christiansen assured attendees that these projects that have withstood advisory body review did indeed reflect the reconfigured face of our urban neighborhood that is downtown San Luis Obispo. Project Statement Updated March 2017 S 77 Section 6.B.ii. Approved Projects In Development with Comparable Height (cont’) Olive Mixed Use (Extended Stay Hotel at 1042 Olive Street) This project lies just outside the boundaries of the Downtown district, yet it deserves honorable mention for the creative application of variety in form & function through the reconfiguration of a half acre parcel of land that has been vacant for over 20 years in the Tourist Commercial (C-T) zone. Figure 21: Olive Mixed Use project recently upheld after being appealed to City Council features An extended stay hotel and serves as an example of the flexible interpretation of compatibility. In a 3:2 split vote at the ARC on October 3rd, 2016, the Olive Mixed Use infill project was approved at 45 feet as a four story mixed-use building that includes: 17 extended-stay hotel rooms; three commercial/retail tenant spaces totaling 3,512 S.F.; a 4th floor common area terrace measuring at 115 S.F. and 35 parking spaces. Chair Wynn noted that the scale and degree of articulation on the project were both appropriate according to the Community Guidelines and among other things, indicated that this project could commence a trend and become a landmark to which future proposals aspire. This a sentiment was echoed by Vice-Chair Ehdaie who mentioned that the design might not befit the current area, but did allow that future developments might point to this project as being an anchor toward inspiration. An appeal of the October 3rd, 2016 ARC decision was filed and brought before the inaugural session of the 2017 City Council. Even though the project had not requested any exceptions, in the cross-hairs of the appeal was the debate as to how should the Community Design Guidelines be adhered to: strictly to the letter? or with a modicum of flexibility with future transitions in mind? Denial of the appeal on January 3rd, 2017 was seen by many as a reflection of the newly installed City Council’s support of the ARC’s vision of an adaptable interpretation of the balance between “neighborhood compatibility” and the changing needs of a vibrantly growing community. Project Statement Updated March 2017 S 78 Section 6.B.iii.: Future Projects Pending Approval with Comparable Height The “evolving face” of the San Luis Obispo Downtown Core includes a few other examples of land owners following the General Plan directive toward mixed use and residential units in upper (two to four story) floors. Fremont Square Figure 22: Architectural rendering of Fremont Square mixed-use project located at 1009 Monterey Street and a proposed height of 60’, is currently under review for development within the historic San Luis Obispo Downtown Core. Rob Rossi and partners have proposed a 60’ high (originally 70’ high) mixed-use project with residential units on upper floors. This will be mid-block, similar to San Luis Square. It does not, however, offer a mid-block pedestrian passageway or parking and is instead relying on in-lieu fees. Project Statement Updated March 2017 S 79 Section 6.B.iii.: Future Projects Pending Approval with Comparable Height (cont’) Lofts at Nipomo (1027 Nipomo Street) Located in the Downtown Historic District on a lot adjacent to the Creamery, this project is currently seeking to build a new four story mixed- used structure with 23 residential units, a seven room boutique hotel and 8,131 S.F. of retail/commercial space. Still undergoing CHC review, this project bespeaks to the spectrum of transitional architectural solutions being offered help the City to fulfill upon its desire to provide a variety of housing options in the downtown core. Figure 23: Lofts at Nipomo mixed-use project still under advisory body review. Section 6.C: Downtown’s Architectural Landscape In current times when reference is made to “traditional San Luis Luis Obispo architecture” all to often it is implied that only one and two story buildings ever existed. In actuality, the opposite is true. Noted and famed designer Pierre Rademaker has made extensive study into the architectural past of San Luis Obispo, and in particular the region of what is now know as the Downtown Core. In his 2016 presentation to the Home Builders’ Association, Rademaker was quick to point out that San Luis has always had a multitude of buildings of varying height throughout its colorful and sometimes tumultuous past. Although many of the structures highlighted in Rademaker’s presentation are no longer standing, some of them still do exist and both have been included in this document. The Big Picture Although many of the structures highlighted in Rademaker’s presentation have been destroyed, some of them still do exist and have been included in this document. These structures, when combined with the others featured in the previous sections (Nearby Existing Structures, Approved & Future Projects), paint a very vibrant and diverse architectural landscape for the San Luis Obispo downtown core as illustrated in the map on the following page. Project Statement Updated March 2017 S 80 Figure 24: Overlay map illustrating the evolving architectural landscape of the San Luis Obispo urban neighborhood consisting of existing structure heights of significance as well as projects under construction and various stages of advisory review. Of note is the balanced distribution of varying heights throughout the Downtown Core as foreseen in the City’s vision documents. Project Statement Updated March 2017 S 81 Section 7 Conclusion Project Statement Updated March 2017 S 82 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 83 Section 7: Conclusion By design, San Luis Square creates a cohesive pedestrian experience and serves to revitalize an underappreciated section of the Downtown Core. The developer is willing to take the significant financial risk in order to provide the City and community with something special in this prominent location. The applicant is asking for support for the allowed height between 50 – 60 feet for these buildings so it can build an available housing product with mixed-use commercial and still include pedestrian amenities and mid-block paseo passageways. Residences which can be rented and/or sold for at competitive rates which will be used to offset the additional cost of the paseo retail experience. The applicant believes and hopes the paseo it is proposing will be treasured by the community and hotel guests as a gathering place to shop, dine and live, providing increased sales tax basis and transient sales taxes to the City as well as a unique sense of place. The applicant and its consultants are a team of dedicated Central Californian people, including some with long standing roots in the greater San Luis Obispo community as resident stakeholders. The team understands and deals with the development of residential and commercial real estate on a daily basis. Its assembly of land for mixed use offers a one-time opportunity for the City to fulfill its General Plan. The applicant team is currently building over 150,000 square feet of commercial retail centers on the Central Coast and has entitled, through its various partnerships, several hundred residential units in the last four years. With the support of the City this applicant is in the best position to implement the vision of the Downtown Concept Plan. The applicant looks forward to being able to not only give back to the community but also is honored to join in the next golden era of a vibrant residential downtown San Luis Obispo. Figure 25: The 590 Marsh building as seen diagonally across the intersection from the southeast corner of Marsh & Nipomo. Project Statement Updated March 2017 S 84 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 85 Section 8 Exhibits Exhibit A: 1993 Downtown Concept Plan Exhibit B: 03/14/06 Memo from John Mandeville (27 pages) Re: Study Session - Building Height & Intensity in the Downtown Core Exhibit C: 10/2/2006 Architectural Review Commission Agenda Report (54 pages) Re: ITEM #2 Exhibit D: 02/06/07 Memo from John Mandeville (126 pages) Re: Proposed General Plan Amendments Project Statement Updated March 2017 S 86 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 87 Exhibit A 1993 Downtown Concept Plan Project Statement Updated March 2017 S 88 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 89 Exhibit B 03/14/06 Memo From John Mandeville (Re: Study Session - Building Height & Intensity in the Downtown Core) Project Statement Updated March 2017 S 90 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 91 Exhibit C 10/02/06 Architectural Review Commission Agenda Report (Re: ITEM #2 File # GPA/TA/ER 50-06) (Re: Overview and discussion of Council direction to consider alternatives for moderately increasing Downtown building height and intensity limits) Project Statement Updated March 2017 S 92 THIS PAGE INTENTIONALLY LEFT BLANK Project Statement Updated March 2017 S 93 Exhibit D 02/06/07 Memo From John Mandeville (Re: Proposed General Plan amendments regarding Downtown building height and related mitigated negative declaration; Downtown Core [GPA/ER 50-60]) Project Statement Updated March 2017 S 94 THIS PAGE INTENTIONALLY LEFT BLANK