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HomeMy WebLinkAbout04-02-2019 Item 12, Cooper (left with Atty at meeting)2�L-CIZ "+� APR fj,? DO Housing Forum - 990 Palm Street Council Hearing Room SLO CITY CLERK Residential Growth Rate - Allan Cooper April 2, 2019 Summary Questions: 1. When will the City Council review this year's Annual Report? 2. When will a residential growth rate (which is required to accompany the Annual Report) be presented to Council? 3. Why wasn't information on residential growth rate shared with the Planning Commission? 4. Don't the citizens of San Luis Obispo (far less the City Council) deserve to know that, regardless of what the General Plan stipulates, we were, currently are, and will be departing from the 1 % per year housing growth rate (see details below)? Adding the 1,011 units built (between 01/01/14 through 06/30/19) to the 2,068 non -exempted units currently under construction (and presumably completed sometime between 06/30/19 and 12/21/20) will, at a minimum, average 2.5% growth in housing per year over the seven year period between January 1, 2014 and December 31, 2020. The new RHNA mandates that an additional 3,354 units be accommodated into SLO between December 31, 2020 to December 31, 2028 and this would result in a 2% per year growth rate. Expanded Text The SLO General Plan states that "the City shall manage the growth of the City's housing supply so that it does not exceed one percent per year, on average, based on thresholds established by Land Use Element Table 3, excluding dwellings affordable to residents with extremely low, very low or low incomes as defined by the Housing Element". The General Plan continues to state that the City Council shall review the rate of growth on an annual basis in conjunction with the General Plan annual report to ensure consistency with the City's gradual assimilation policy. On February 27, 2019, the Planning Commission received the 2018 General Plan Annual Report, staff gathered the Commission's input and recommendations and now the report will be forwarded to Council for final acceptance. My first question is when will the City Council review this Annual Report? Though there was mention in this Annual Report of the non-residential growth rate, there was no mention of the residential growth rate. I drew the Planning Commission's attention to this. I mistakenly expected that this residential growth rate would later be included in your Housing Update which the Council will be reviewing on April 2, 2019 but, again, there is no mention of this residential growth rate (i.e., in percentages) in your April 2nd staff report. So my second question is when will this residential growth rate be presented to Council and why wasn't this information shared with the Planning Commission? Permit me to explain why I am concerned about this. On January 1, 2014 there were 17,855 housing units in San Luis Obispo (source: American FactFinder). Since then,: your Housing Update reported that there were 1,011 units built (i.e., a 1.1 % per year growth rate) which would total 18,866 housing units. However, your report states that there are presently 21,416 housing units within the city. My question to you is where did the extra 2,550 units come from? Perhaps the answer to this question follows. The City helpfully publishes a list of projects currently under construction on its website. This list is titled "Current Development Projects in San Luis Obispo, California". This list is not comprehensive. The list does not include projects smaller than 5 units nor does it include recently completed projects. This list includes 2,346 exempted and non -exempted units currently under construction as well as 413 units under planning review, 221 units under building review and 630 units under the category "specific plans". However, this increase in non - exempted housing (2,068 housing units) currently under construction represents 10.4% of our total housing inventory. Is it possible that these 2,068 housing units account for the period between April 2, 2019 and December 31, 2020? If this is the case, then SLO, at a minimum, will have averaged a 2.5% growth in housing per year over the seven year period between January 1, 2014 and December 31, 2020. Finally, your Housing Update report states that our new RHNA mandates that an additional 3,354 units be accommodated into SLO between December 31, 2020 to December 31, 2028 and this would result in a 2% per year growth rate. So here is my final question to you. Don't the citizens of San Luis Obispo (far less the City Council) deserve to know that, regardless of what the General Plan stipulates, we were, currently are, and will be departing from the 1 % per year housing growth rate? Thank you in advance for any information you may be able to provide me on this important topic! To: SLO Planning Commission and Kyle Bell Re: 1160 Laurel Lane From: Allan Cooper, San Luis Obispo Date: February 9, 2019 Honorable Chair and Commissioners - You are reviewing a project that is proposed to be comprised of 702 residential units. Based on the City's average household size', this project is estimated to accommodate approximately 1,641 residents. According to SLO's General Plan "the City shall manage the growth of the City's housing supply so that it does not exceed one percent per year2, on average, based on thresholds established by Land Use Element Table 33, excluding dwellings affordable to residents with extremely low, very low or low incomes as defined by the Housing Element". I am urging you to look at this project in light of the following broader context. The City publishes a list of projects currently under construction on its website4. This list is titled "Current Development Projects in San Luis Obispo, California"5. 1 Total Population (2017): 47,541 divided by 20,334 households = ave. household size: 2.338 2 1.11. Growth Rates & Phasing 1.11.1. Overall Intent The City shall manage the city's growth rate to provide for the balanced evolution of the community and the gradual assimilation of new residents. Growth must be consistent with the City's ability to provide resources and services and with State and City requirements for protecting the environment, the economy, and open space. 1.11.2. Residential Growth Rate The City shall manage the growth of the city's housing supply so that it does not exceed one percent per year, on average, based on thresholds established by Land Use Element Table 3, excluding dwellings affordable to residents with extremely low, very low or low incomes as defined by the Housing Element. This rate of growth may continue so long as the City's basic service capacity is assured. Table 3 shows the approximate number of dwellings and residents which would result from the one percent maximum average annual growth rate over the planning period. Approved specific plan areas may develop in accordance with the phasing schedule adopted by each specific plan provided thresholds established by Table 3 are not exceeded. The City Council shall review the rate of growth on an annual basis in conjunction with the General Plan annual report to ensure consistency with the City's gradual assimilation policy. 3 Table 3. One Percent City Population Growth Projection: SLO Land Use Element 2015: max. # dwellings: 21,113; anticipated number of people: 46,456 2020: max. # dwellings: 22,190; anticipated number of people: 48,826 2025: max. # dwellings: 23,322; anticipated number of people: 51,317 2030: max. # dwellings: 24,512; anticipated number of people: 53,934 2035: max. # dwellings: 25,762; anticipated number of people: 56,686 Estimated urban reserve capacity: 57,200 4 Under City of San Luis Obispo CA click on "Doing Business", then "Maps", then "Development Projects in Process". 5 see: https://www.slocity.org/doing-business/doing-business-in-slo/what-development-is-happening- in-the-city This list is not comprehensive. The list (see below) does not include projects smaller than 5 units nor does it include recently completed projects. This list includes 35 projects (2,346 units) currently under construction (shown in parentheses), 6 projects (413 units) under planning review (shown underlined), 3 projects (221 units) under building review (shown in italics) and 2 projects (630 units) included on this list under the category "specific plans" (shown in caps). The bold type projects are exempted from the 1 % per year growth cap because they are located downtown. Of the 35 projects under construction, 7 downtown projects (169 units) are exempted. Taking into account an additional category of units exempted from the growth cap, we will assume that 5% of the 2,177 housing units under construction have been set aside for low income. Subtracting out the low income units leaves 2,068 units - units which should come under the 1 % per year (or 5% per 5 years) growth cap. According to American FactFinder6, there were approximately 20,332 housing units in the City in 2017 with a margin of error of +/- 597. This increase in non -exempted housing (2,068 units) represents 10.2%7 of our total housing inventory. Assuming that the number of housing units under construction will take 3 years to complete, and assuming no more housing will come before the City for approval (which is highly unlikely), this would still average an increase of 3.4% per year. Now lets talk about population growth projections. SLO's total population after completion of all projects under planning review, under building review & under construction will be 54,3478. This means that according to the population thresholds established in the Land Use Element Table 3, we are more than 11 years ahead of schedule. Add to this the projected additional population associated with 1160 Laurel Lane and we will be at 55,988 which would place us nearly at the Land Use Element's maximum population projection for 2035. Regardless of the merits of this project, and I concur with most of Mr. Lopes' positive comments he made in his letter to you regarding 1160 Laurel Lane, you should not be looking at this project in a vacuum. Staff has asked you to review the project in terms of its "consistency with the General Plan (which includes the Land Use Element), Zoning Regulations, and applicable City development standards and guidelines". 6 see: UUP_%llfactfinder.census.,govdacesltableservi 1 11 fLpages/productview.xhtmi?src-Cl' 7 Assume that all projects currently under construction obtained their permits 5 years ago (highly unlikely) and that no new housing units were completed and occupied over this period of time (which is not the case). Excluding Avila Ranch and Righetti Ranch from these calculations, current construction would comprise 5% of our total housing inventory over the past 5 years. However, there was approximately a 0.3% per year growth in new housing units completed and occupied between 2010 and 2017 and Righetti Ranch has already begun construction. 8 Projected increase in population after all projects currently under construction are completed (including exempted and non -exempted housing): 5,485 Total population after completion of projects under current construction: 53,026 Total population after completion of projects under building review & under current construction: 53,381 Total population after completion of projects under planning review, under building review & under current construction: 54,347 Therefore, it is incumbent on you to make note of this gross discrepancy between our current state of affairs and the targeted housing and population projections that are memorialized in the City's Land Use Element. Thank you! Legend: (Rockview Moderns) Under Construction 1120 Motalhan Under Planning Review The Junction Under Building Review SAN LUIS RANCH Specific Plan (South Town 18) Downtown (Exempted From 1 % Per Year Growth Cap) List of Projects - 2019 (Source: "Current Development Projects in San Luis Obispo, California") SAN LUIS RANCH 500 FROOM RANCH 130 Marsh & Chorro 55 (75 feet tall) 650 TanE Form 249 545 Hmgue 64 Mail Pouch South 10 56 MQnterey 20 1121 Montalban 15 (Victoria & Caudill) 8 (Rockview Moderns) 8 (790 Foothill) 78 (South Morros) 53 (Pratt Ranch) 35 (Avila Ranch) 720 (The Connect) 78 (Tribune Work/Live) 43 (Fernwood Apartments) 5 (207 Higuera) 8 (Monterey Place) 29 (San Luis Square) 63 (Broad Street Collection) 32 (Twin Creeks) 94 (Broad Street Workforce) 40 (Victoria Crossing) 33 (Broad St. Mixed Use) 11 (South Town 18) 18 (Imel Ranch) 18 (1185 Monterey) 13 Laurel Lane Mixed Use 18 The Junction 69 Jones Subdivision 65 (Serra Meadows Prado) 31 (Westcreek: Noveno) 172 (Marsh & Carmel) 8 (Serra Meadows Courtyard) 36 (Righetti Ranch) 304 (The Yard) 43 (Bishop Street Studios) 34 (Ironworks) 46 (Toscano Moresco) 161 (625 Toro) 14 (Hotel Cerro) 8 (Hotel SLO) 30 (Fixlini Tract) 13 (Bridge Street Terraza) 26 (71 Palomar) 33 Total Number of Housing Units (Source: American FactFinder) 2017 18,728 2016 18,555 2015 18,044 2014 17,855 2013 17,874 2012 18,378 2011 18,458 2010 19,734 2009 19,579 Percent Growth in Housing Units Over Designated Periods Of Time (Source: American FactFinder) 2010 to 2012 0.4% 2000 to 2009 10.0% 1980 to 1999 27.5% 1960 to 1979 35.3% 1940 to 1959 18.1% 1939 or earlier 8.7% Percent Per Year Growth In Housing Units (Source: American FactFinder) 2014 to 2017 164 units average yearly growth 2010 - 2017 = 0.30% 2010 to 2013 244 units Entitled but not under construction in 2019 2000 to 2009 1,726 units average yearly growth 2000 - 2010 = 0.96% 1980 to 1999 4,988 units average yearly growth 1980 - 2000 = 1.90% 1960 to 1979 7,227 units 1940 to 1959 2,558 units Legend: Gauckli Mixed Use Pro�k of Completed and occupied by 2019 Chinatown Project Near completion in 2019 Bridge Street (Terraza) Under construction in 2019 San Luis Square Project Entitled but not under construction in 2019 Froom Ranch Specific Plan Planning review C(Ae FIlswoith Project Project abandoned List of Projects - 2015 (Source: "Current Development Projects in San Luis Obispo, California") Avila Ranch Specific Plan 720 units San Luis Ranch Specific Plan 500 units margaote ;Tea lite Plan 868--upits Serra Meadows 166 Orcutt Area Specific Plan - Righetti/Jones Ranch Development 370 units (or 731 units) Froom Ranch Specific Plan 275 units Froom Ranch Specific Plan 275 independent care apts. (one occupant units) Froom Ranch Specific Plan 341 assisted care apts. (one occupant units) Turnblin (861 & 953 Orcutt) ? Creekston (791 Orcutt) 264 units Chinatown Project 16 units Garden Street Terraces Project 8 units Monterey Place Project 23 units (or 30 units) 71 Palomar Ave. Project 41 units San Luis Square Project ft. 48 units (or 60 units) The Junction Project 69 units SLO Terrace Project 17 units Caudill Mixed Use Project 36 units The Yard Project 43 units 860 Humbert Project 20 units Toscano Moresco Project 161 units Mangano Homes Tract (West Creek) 177 units x Laurel Cre ek Project 117 units x Broad Street Village Wingate Homes Project 78 units x (or 142 units) Imel Project 18 units Colter Ellsworth Project 35 units Fremont Square Project 21 units (or 19 units) 460 Marsh Street Project 4 units Pacific Courtyards (1327 Osos) (UC) 9 units x Broad & 10arsh (667 Marsh) 4 units ,ran Works (36SO Broad) 46 units x Sarna Rasa (1135 S. Rosa) 2 units Broad St. (309913049 Broad) 8 units x Single Family Residences 280 units Laurel Lane Mixed Use 18 units Bishop Knoll 14 units x 22 Chorro 26 units x Olive Mixed Use 17 units Residence @ Grand 4 units Santa Pisa Street Infill 25 units 625 Toro 14 units 1521=ernni 3 units 1:35 Ferrini 5 units h4ol lan Terrace 20 units 9 On Rockvievv 9 units South Hills Crossing (313 South) 43 units x Bridge Street (ferraza) 26 units Brownstones 8 units x Fixlini Tract 6 units �r�