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HomeMy WebLinkAbout04/01/1997, 3 - LAND USE POLICIES CONCERNING OFFICES AND BAKERIES IN AREAS DESIGNATED SERVICES AND MANUFACTURING council D� -� - j ac En ba Repout V" b CITY OF SAN L U I S O B I S P O FROM: Arnold B. Jonas, Community Development Director by Gq-7? Prepared By: Glen Matteson, Associate Planner SUBJECT: Land use policies concerning offices and bakeries in areas designated Services and Manufacturing CAO RECOMMENDATION 1. Conceptually approve a negative declaration of environmental impact and an amendment to the General Plan Land Use Element text, to allow more types of offices in the Services and Manufacturing category(consistent with current Zoning Regulations), and to clarify the status of small retail bakeries vs. food manufacturing. 2. Direct staff to aggregate the attached draft resolution of approval with other proposed General Plan Amendment actions for adoption by a single motion at the end of this meeting. DISCUSSION Situation The General Plan requires that the City's Zoning Regulations be consistent with the General Plan. Policies in the 1994 Land Use Element update require deleting from the Zoning Regulations several types of office uses. The alternative to achieving consistency by amending the Zoning Regulations is to amend the Land Use Element policies, thereby allowing existing zoning provisions to be consistent with the General Plan. At recent meetings, this latter approach was supported by the City Council and recommended by the Planning Commission. Background The Services and Manufacturing Catesory The City's General Plan Land Use Element contains a Services and Manufacturing land use category. Two zones implement this category. The Service Commercial (C-S) Zone is usually applied to properties along major streets, while the Manufacturing (1V1) Zone is typically applied to sites with less public visibility (attached map). Allowed uses in these two zones are similar, though the C-S zone emphasizes sales, while the M zone emphases manufacturing and distribution. The attached resolution exhibit includes the adopted purpose statement for this land use category, and shows the recommended changes. Legal, medical, and most walk-in type financial services would continue to be allowed only in zones other than C-S and M. A wide range of uses have been developed in C-S zoned area (sometimes with "planned development" overlays), including vehicle sales, vehicle repair, business supplies and services, equipment rental, building and home improvement sales, several types of offices, small shopping centers, individual grocery stores, fight manufacturing, and ministorage. Because C-S zoned land and buildings tend to cost less than those zoned Office (0) or Retail Commercial (C-R), several Council Agenda Report- Offices in Services & Manufacturing Page 2 uses that are allowed in all three zones are attracted to the C-S zone. Also, with the exception of major shopping centers,the C-S zone has generally provided larger sites than the O or C-R zones. Most C-S zone developments were originally approved by the City, though a few were originally approved by the County and were later annexed by the City. For several years, questions have come up concerning what specific types of uses should be allowed in the C-S zone generally, and on particular sites. Long standing market pressure for office uses in the C-S zone has influenced the existing Zoning Regulations. Testimony during recent hearings included concerns that several types of existing uses would become nonconforming, and that fewer types of compatible businesses would be allowed in C-S zoned projects, if the pertinent sections of thel994 Land Use Element were implemented. Land use data describing existing development in the C-S zone and the capacity for additional development of various kinds indicates that the types of offices at issue can be developed in C-S zones without displacing other desired uses, such as research and development or fight manufacturing, or retail that fits best in C-S zones (attached figure and tables). An informal review of code enforcement and recent hearing items indicates that there will be few compatibility problems among the proposed allowable uses. The following discussion highlights some of the types of uses at issue. Design Firms Before adoption of the Land Use Element update in 1994, there was a clear policy prohibiting "the dispersion of design firms [among other uses]... throughout the city." That reference was commonly understood to mean planners, architects, landscape architects, and interior designers, so they were not initially allowed in C-S zones. "Industrial design," in the sense of consumer products or industrial equipment, was seen as appropriate in C-S zones. Engineers, who often need space for field vehicles and testing facilities, also were allowable in C-S with use permits. All these types of offices were also allowed in Office, Retail Commercial, and Central Commercial zones, and they will continue to be. This approach to office location was mainly to reinforce the vitality of downtown, and to help minimize trips between the offices and agencies which often deal with each other. (Apparently, there was not a specific concern that allowing offices in the C-S zone would unacceptably reduce the space available in that zone for the uses that would be most appropriate there, though there was a general concern with a "chain of displacement" that would result in some fairly intensive types of uses locating in unincorporated areas south of the City, where there were minimal public services and design standards.) However, the combination of many disciplines related to land development in individual firms did not fit well with the intended categories of the pre-1994 Land Use Element. Other related activities are frequently integral to the work of engineering and development firms. Mainly for this reason, in 1993 as part of"development review streamlining," the Zoning Regulations were amended to allow architects in C-S zones and to eliminate the use permit requirement for engineers. 3 Council Agenda Report- Offices in Services & Manufacturing Page 3 Utility Companies Utility company offices were a significant component of downtown for many years. They provided service for walk-in customers, internal management, and services for project designers. As utility staffs and equipment storage needs grew and downtown space became more valuable, the relocation of functions other than customer service (such as maintenance yards) to outlying sites was seen as desirable. The Zoning Regulations reflected this situation by allowing utility company administration and engineering offices in C-S zones. While the 1994 LUE update had the effect of discouraging utility company offices in C-S zoned areas, there was not a discussion of this intent during the hearings leading to adoption. LaMe Offices For many years, concerns have been expressed about the detrimental impacts on residents and neighborhood character due to replacing downtown houses with offices. One response was to amend the Zoning Regulations to require use permits to regulate residential conversions to offices in the Office zone. More recently, the Land Use Element and the Housing Element were updated to contain programs (which are yet to be implemented) for finther refinement of the zoning rules applying to downtown offices and dwellings. There were also concerns about the adequacy of space for offices, especially those that do not fit in dwelling conversions or small scale, downtown buildings that would be compatible with historic neighborhood character. A 1986 study commissioned by the City surveyed office supply and demand, and concluded that there were unmet demands for large office spaces. The study recommended ways to meet projected demands, including a strategy for allowing large office complexes. This recommendation lead to the existing Zoning Regulations provision allowing "planned developments" in C-S and M zones for certain types of large offices. This allowance was reflected in the 1994 Land Use Element. Further, a recent C-S planned development (The Brickyard) was approved allowing small offices if they are grouped with common facilities in the form of"executive offices." The practical result of this approach, along with eliminating the minimum parcel size for"PD's," is an opening of all C-S zoned areas to nearly all types and sizes of offices. Small and Start-up Businesses Market trends since the early 1980's and recent experience indicate that the demand for large office space is not as strong as was thought during the preparation of the 1986 study. Another type of office demand has become more significant: the small firm and start-up or incubator business. These businesses often are seeing if a new product or service can be produced or will be profitable. They typically seek low cost facilities at they develop their product. Before the recent Zoning regulations revision, these types of business were allowed in the C-S zone under categories covering advertising, graphic design, printing, computer services, offices for industrial design, and light manufacturing. With the new zoning provisions, they will typically come under "research and development." 33 Council Agenda Report- Offices in Services & Manufacturing Page 4 Bakeries In the most recent batch of revisions to the Zoning Regulations, the City Council decided to not allow retail sales of groceries, liquor, and specialized foods in the C-S zone (except at warehouse stores or convenience stores). Bakeries had been listed parenthetically in the Zoning Regulations use chart as an example of specialized foods. However, the Land Use Element mentions bakeries specifically in the "purpose" section of Services and Manufacturing as an appropriate use (policy 3.5.1). The intent in the Land Use Element was to use bakeries as a concise example of food manufacturing, as opposed to a retail bakery. However, the text does not make this obvious. Therefore, staff suggests replacing "bakeries" with "food manufacturing" in the Land Use Element text. Environmental Determination The impacts of making the Land Use Element policies match the existing Zoning Regulations have been addressed in previous actions on the Zoning Regulations Advisory Body Review The Planning Commission, on December 11, 1996, voted seven to none to recommend approval of the amendment as presented in the attached draft resolution. No testimony was offered. Testimony in opposition to reducing the types of offices allowed in Services and Manufacturing areas is noted above and has been summarized in previous agenda reports. CONCURRENCES No City departments have objected to the proposed amendment. FISCAL IlVIPACT No significant fiscal impacts are anticipated to result from the recommended action. ALTERNATIVES 1. Council may deny the amendment (second attached resolution). This would require further changes to the Zoning Regulations, contrary to recent Council direction. 2. Council may approve different language for the text. A policy which is not consistent with the rest of the General Plan would require further amendments to maintain the General Plan's internal consistency. A substantially different amendment may need additional environmental review or Planning Commission review before the Council acts. 3. The Council may continue action. There is no deadline set by State law, but the General Plan and Zoning Regulations should be brought into conformance within a reasonable time. Council Agenda Report- Offices in Services & Manufacturing Page 5 Attachments Resolution approving Land Use Element text amendment Resolution denying Land Use Element text amendment Map of Services and Manufacturing areas Figure and tables of uses and vacancy in commercial zones Planning Commission Staff Report 3 S RESOLUTION NO. (1997 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING THE LAND USE ELEMENT TEXT CONCERNING OFFICES AND BAKERIES IN SERVICES AND MANUFACTURING AREAS (GP 115-96) WHEREAS, the City Council conducted a public hearing on April 1, 1997, and has considered testimony of interested parties, the records of the Planning Commission hearing and action, and the evaluation and recommendation of staff. BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Environmental Determination. The City Council finds and determines that the potential impacts of making the Land Use Element consistent with the existing Zoning Regulations has been adequately addressed in previous environmental review for the adoption and revision of the Zoning Regulations. SECTION 2. Findings. That this Council, after consideration of a General Plan Land Use Element text amendment concerning offices and bakeries in the Services and Maufacturing land use category (GP 115-96) and the Planning Commission's recommendations, staff recommendations, public testimony, and reports thereof, makes the following finding: A. The proposed text amendment is consistent with other policies of the General Plan. SECTION 3. Approval The request for approval of the Land Use Element amendment GP 115-96, as shown in the attached Exhibit A, is hereby approved. SECTION 3. The Community Development Director shall cause the amendment to be reflected in documents which are on display in City Hall and which are available for public use. SECTION 4. This amendment shall take affect at the expiration of 30 days following approval. Resolution.No. Page 2 _ On motion of - -- -= -_ .- - seconded'by_ ----- ------- -- -,. and on the following roll call vote: AYES: NOES: ABSENT:. the foregoing,resolution was adopted.this_day of ; 1997: Mayor Allen K. Settle ATTEST:. City Clerk Bonnie Gawf APPROVED AS TO FORM: MY Jor . n� smoff ces-cores = / Exhibit A LAND USE ELEMENT AMENDMENT (GP 115-96) Added text is under ' Deleted text is Umd o 3.3.2 Office Locations A. All types of offices are appropriate in the downtown General Retail district, but are discouraged at street level in storefronts of the commercial core. B. All types of office activities are appropriate in the Office district which surrounds the downtown commercial area, though offices needing very large buildings or generating substantial traffic may not be appropriate in the area which provides a transition to residential neighborhoods. C. Medical services should be near the hospitals. D. Government social services and the regional offices of state and federal agencies should be near the intersections of South Higuera Street, Prado Road, and Highway 101 (Figure 5); E. Large offices, with no single tenant space less than 2,500 square feet, and having no substantial public visitation or need for access to downtown government services may be in Services and Manufacturing districts, subject to approval of a Planned Development zoning application. F. Certain business and professional services having no substantial public visitation or limited need for access to downtown government services may be in Services and Manufacturing districts Examples of such uses are computer services utilities engineering and administration architects and engineers. industrial design advertising building contractors labor and fraternal organizations veterinarians and insurance and financial services that do not directly serve retail customers. 3.5 Services and Manufacturing 3.5.1 Purpose The City should have sufficient land designated for Services and Manufacturing to meet most demands of the City, and some demands of the region, for activities such as business services, wholesaling, building contractors, utility company yards, auto repair, printing, bakeries food manufacturing and other light manufacturing, and retail sales of large items, bulk quantities, and items often stored outdoors (vehicles, building materials, plants). Areas reserved for these uses may also accommodate convenience restaurants and other activities primarily serving area workers. ��0 Exhibit A (continued) 3.5.2 Appropriate Uses The following types of uses are appropriate in areas designated Services and Manufacturing. Certain area designated Services and Manufacturing may be reserved through special zoning provisions for certain types of uses, to assure compatibility among the wide range of potential uses, and to assure adequate land for certain types of uses. A. Wholesaling, warehousing, and storage; B. Vehicle sales and rental; C. Retail sales of products which require outdoor areas or large floor areas for display and storage, such as warehouse stores, lumber and building materials dealers, home improvement centers, furniture and appliances stores, and plant nurseries; D. Repair shops, printing services, laundries, animal hospitals, sporting goods stores, auto parts stores, and some recreation facilities; E. Light manufacturing, research and development, and laboratories. (See also "Business Parks" in the Airport section, page 74.) F. Large offices, with no single tenant space less than 2,500 square feet, and having no substantial public visitation or need for access to downtown government services may be in Services and Manufacturing districts, subject to approval of a Planned Development zoning application. G. Certain business and professional services having no substantial public visitation or limited need for access to downtown government services may be in Services and Manufacturing districts. Examples of such uses are computer services. utilities engineering and administration. architects and engineers. industrial design, advertising. building contractors, labor and fraternal organizations. veterinarians. and insurance and financial services that do not directly serve retail customers. smnffices-en 34 RESOLUTION NO. (1997 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DENYING AN AMENDMENT OF THE LAND USE ELEMENT TEXT CONCERNING OFFICES AND BAKERIES IN SERVICES AND MANUFACTURING AREAS (GP 115-96) WREREAS, the City Council conducted a public hearing on April 1, 1997, and has considered testimony of interested parties, the records of the Planning Commission hearing and action, and the evaluation and recommendation of staff. BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Findings. That this Council, after consideration of a General Plan Land Use Element text amendment concerning replacement of hillside houses in limited situations (GP 5496) and the Planning Commission's recommendations, staff recommendations, public testimony, and reports thereof, makes the following finding: A. The proposed text amendment is not consistent with policies of the General Plan. SECTION 2. Denial. The request for approval of the Land Use Element amendment GP 115-96 is hereby denied. On motion of seconded by, and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this_day of . 1997. Resolution'No: Page 2 Mayor Allen K. Settle .ATTEST: -- -- -------------- - ----- City Clerk. .. -APPROVED AS TO FORM: ity orq smo$_lcesdny-ccres •_unl1=-� \��i=•-�.!�` �.•`'�''��.`♦ ���\`mac,: i i��a J�:Ill\I��Il�i�" i♦OO � __= i n\C\\. „`� � . ��` ♦ !gyp'.. ``\\ `p\ �♦ _. \\ •`•` ` I ♦ \� �4 \ ` � ' O ♦ � `♦Off' O` �• 1' 11111L IIII-IIII WA IIII 111111 IIII�■ = \ ���•• �,!/• •� .;+: �. SII _III- IP • -. �.�.�: . •\";. 1�i �• •: ' • �• •:%: ..IIWIII IIII IIIIIIIIIIIII s .. ' :. � � ��� 11111-.0]_ ?.; .:��..; /���� yb,• � l', - �',■._=.1111_,i�� 1_° �.. :\���..•=,�' �//''i�\.w, ■r ---' _•n J=1.111111 O` �\ � .�•'�;r,,, if oil =••..P'�, IIII IIi1 °° �",®�.\ ®,/, • , ��. 111111 11111111111111111 TP��. . �•�`r�� ;;,�,, � I•- IIIIIIIII�IIII11 111111• II 111111 . �IJ 1111111111 ullll 11 .1111 - 1��r. ,,O:^]]O• • VIII 111111 111111111111111111111111115 �&� •`"' :':r\ ;�,. >,I._ � Ile\,•:;.��..... ... ' � `'aB��� �W 1 . . - _ . . •. - . � -- ice•• .:��:� . by City of SLO C-S ZONE: DEVELOPED FLOOR AREA VACANT ARCHITECTS & ENGINEERS ALL OTHER PRIVATE OFFICES PUBLIC ADMINISTRATION RETAIL - GENERAL MERCHANDISE \N RETAIL - FOOD STORES ORGANIZATIONS ALL OTHER USES SQUARE FEET 300r000 - 200,000 - 1 MOW 00,000200,000 - 100,000 - Source: City of S.L.O. Land Use Inventory, August 1996 3 -13 C-S ZONE LAND USE COMPARISONS (OCCUPIED FLOOR AREA IN SQUARE FEET) LAND USE CATEGORY CITYWIDE C-S ZONES OTHER ZONES Retail: General Merchandise (includes department & variety stores) [SIC 275,600 22,700 252,900 531 Retail: Food Stores [SIC 541 236,000 48,800 187,200 Office: Engineering [SIC 87111 43,800 23,500 20,300 Office: Architecture [SIC 87121 32,600 61400 26,200 Contractors*[sic 15, 16, 171 151 ,900 81 ,600 70,300 Utilities' [SIC 4911, 4923, 49531 34,750 12,750 22,000 Organizations [SIC 861 401 ,500 35,600 365,900 All Other Nonresidential Uses 81946,750 11736,850 7,209,900 (excluding those listed above) • City's land use coding does not distinguish between offices associated with work and storage yards and offices not associated with such yards. Source: City of S.L.O. Land Use Inventory, August 13, 1996. gm: areatabl.esz OFFICES IN C-S-PD (OCCUPIED FLOOR AREA IN SQUARE FEET) LAND USE CATEGORY ALL C-S ZONES C-S-PD Engineers & Architects 29,900 3,900 [SIC 8711, 87121 Public Administration [SIC 91 through 41 ,600 18,000 971 Organizations [SIC 861 35,600 1 ,700 Other Office Types (excluding 67,400 20,000 contractors, advertizing, computer services & utilities) [includes SIC 60 thru 67, 80, 81, 8721, 87411 Source: City of S.L.O. Land Use Inventory, August 13,1996. gm: areatabl.csz 3-« v �o O_ W ~ C V LA O O O Co H N O LU Z Ch L) _. 0) 00 O O 0 00 z ^ N N O V � Z (, > J CD Q y GLLIN N Cl) M M N v Q Z O M H > O .1 -- 0 N Lu > Z W Qa_ of �-- Z cc n � LA M Z WLU im 0 I� N ui LA Co oo E .. o0 O 'rn ay LL m W � Q Z Z * O O O O O O ` W Q N O O v o Q OLL U , . W Z Q = a 0 It w N O M v aCi 0 ! Q V1 r- V- > d — Qm W0 O O O O O o M W Q co Lf) M 1-- 00 N dcr Cfl N M O N E J O O rn LO 't m 't y O O r r N J O � H c o W cc >Lu U y Z N Z W V in N 1612 ol m U) 9 E a Planning Commission Staff Report - Services and Manufacturing Uses Pagel CITY OF SAN LUIS OBISPO PLANNING COMMISSION STAFF REPORT rrEM a BY: Glen Matteson, Associate Planner MEETING DATE: December 11, 1996 FROM: John Mandeville, Long Range Planning Manager FILE NUMBER: 115-96 PROJECT ADDRESS: Citywide SUBJECT: General Plan Land Use Element policies concerning (1) offices, bakeries, and convenience services in the Services and Manufacturing category and(2)building heights in retail areas near the downtown core. SUMMARY RECOMMENDATION 1. Recommend that the City Council amend the General Plan Land Use Element text to allow more types of offices in the Services and Manufacturing category(consistent with current Zoning Regulations), and to clarify the status of small retail bakeries vs. food manufacturing. 2. If appropriate, reaffirm the Commission's previous determination regarding the current Land Use Element height standard for buildings in General Retail areas next to the downtown core. DISCUSSION General Background: Services A Manufacturing Uses The General Plan requires that the City's Zoning Regulations be consistent with the General Plan. The 1994 Land Use Element (LUE) update contains policy language which requires deleting from the Zoning Regulations several types of office uses. The alternative to achieving consistency by amending the Zoning Regulations is to amend the particular policy language so as to allow existing zoning provisions to be consistent with the General Plan. This issue has been explained in previous reports and has been considered by the Planning Commission and City Council at various meetings over the last few months. The Planning Commission directed that staff return with an amendment to the LUE to establish consistency with existing Zoning Regulation provisions regarding certain office uses in the C-S zone. General Plan amendments must be analyzed for internal consistency with all of the goals and policies of the General Plan. The following discussion provides an analysis of the proposed amendment. A basic concept in land use planning is the designation of enough land in suitable locations for desired activities, without depleting the land which is available for other desired uses. These community choices are expressed in General Plan policies and by applying relatively broad land use categories to mapped areas. To implement the General Plan land use designations and policies in greater detail, zoning regulations provide lists of specific uses which are allowed by —/ 7 Planning Commission Staff Report - Services and Manufacturing Uses Paget right, allowed with special approval, or not allowed within corresponding zones. For zoning provisions to be the determinant of general plan policy can be the equivalent of the tail wagging the dog, as zoning is an implementation tool for the general plan. However, should a situation arise in which an existing zoning provision better serves a community need than new general plan policy, it is appropriate to review the general plan and the issue at hand. It should also be recognized that in taking a comprehensive, long-range view, the General Plan may create certain opportunities and constraints which go beyond fixing immediate problems. Achieving a long-term goal may require incremental changes to the status quo that individually do not seem necessary, but collectively constitute a strategy for meeting future goals. With specific regard to offices in the C-S zone, accomplishing goals for maintaining an adequate inventory of land for Service Commercial uses, compatibility between neighboring uses, public convenience, and reinforcement of public investment may involve the creation and relocation of non- conforming uses in the short tern, to be replaced with the desired uses in the long-term. The proposed LUE amendment should be reviewed in this context. Focused Background: Offices in C-S The City's General Plan Land Use Element contains a Services and Manufacturing land use category. Two zones implement this category. The Service Commercial (C-S)Zone is usually applied to properties along major streets, while the Manufacturing(Ivl)Zone is typically applied to sites with less public visibility(attached map). Allowed uses in these two zones are similar, though the C-S zone emphasizes sales, while the M zone emphases manufacturing and distribution. A wide range of uses have been developed in C-S zoned areas (sometimes with"planned development" overlays), including vehicle sales, vehicle repair, business supplies and services, equipment rental, building and home improvement sales, several types of offices, small shopping centers, individual grocery stores, light manufacturing, and ministorage. Because C-S zoned land and buildings tend to cost less than those zoned Office(0) or Retail Commercial (C-R), several uses that are allowed in all three zones are attracted to the C-S zone. Also, with the exception of major shopping centers, the C-S zone has generally provided larger sites than the O or C-R zones. Most C-S zone developments were originally approved by the City, though a few were originally approved by the County and were later annexed by the City. For several years now, questions have come up concerting what specific types of uses should be allowed in the C-S zone generally, and on particular sites. The general plan - zoning consistency review of further limiting the allowed uses to conform to the Land Use Element update has raised concerns about making existing uses non-conforming, and reducing the number of potential occupants for C-S zoned developments. Evolution of Existing Office Uses in the C-S Zone. A steady market pressure for office uses in the C-S zone has persisted for many years and has influenced the existing Zoning Regulations. Before adoption of the Land Use Element update in 1994, there was a clear policy prohibiting .3�0 Planning Commission Staff Report - Services and Manufacturing Uses Pagel "the dispersion of design firms [among other uses]... throughout the city." That reference was commonly understood to mean planners, architects, landscape architects, and interior designers, so they were not initially allowed in C-S zones. "Industrial design" (in the sense of consumer products or industrial equipment)was seen as appropriate in C-S zones. Engineers, who often need space for field vehicles and testing facilities, also were allowable in C-S with use permits. All these types of offices were also allowed in Office, Retail Commercial, and Central Commercial zones. This approach to office location was mainly to reinforce the vitality of downtown, and to help minimize trips between the offices and agencies which often deal with each other. Apparently there was not a specific concern that allowing offices in the C-S zone would unacceptably reduce the space available in that zone for the uses that would be most appropriate there. However, there was a general concern with a"chain of displacement" that would result in some fairly intensive types of uses locating in unincorporated areas south of the City, where there were minimal public services and design standards. The combination of many disciplines related to land development in individual firms did not fit well with the intended categories, however. Other related activities are frequently integral to the work of engineering and development firms. Mainly for this reason, in 1993 as part of development review streamlining, the Zoning Regulations were amended to allow architects in C- S zones and to eliminate the use permit requirement for engineers. Utility company offices were a significant component of downtown for many years. They provided service for walk-in customers, internal management, and services for project designers. As utility staffs and equipment storage needs grew and downtown space became more valuable, the relocation of functions other than customer service(such as maintenance yards)to outlying sites desirable. The Zoning Regulations reflected this situation by allowing utility company administration and engineering offices in C-S zones. Limitation on Office Uses in the Downtown. For many years, concerns were expressed about the detrimental impacts on residents and neighborhood character due to replacing downtown houses with offices. One response was to amend the Zoning Regulations to require use permits to regulate residential conversions to offices in the Office zone. More recently, the Land Use Element and the Housing Element were updated to contain programs(which are yet to be implemented)for further refinement of the zoning rules applying to downtown offices and dwellings. There were also concerns about the adequacy of space for offices, especially those that do not fit in dwelling conversions or small scale, downtown buildings that would be compatible with historic neighborhood character. 1986 Office Supply and Demand Study. A 1986 study commissioned by the City surveyed office supply and demand, and confirmed many of the previous observations described above. The Study concluded that there was a demand for large office spaces. It outlined options for meeting projected demands, including a recommendation that the City enact a strategy for allowing large office complexes. . This lead to the existing Zoning Regulations provision for allowing"planned developments" in C-S and M zones for certain types of large office tenants. This allowance was reflected in the 1994 Land Use Element. Further, a recent C-S planned development (The Brickyard)was approved allowing small offices if they are grouped with common facilities in the Z -�/ Planning Commission Staff Report - Services and Manufacturing Uses Page4 form of"executive offices." The practical result of this approach, along with eliminating the minimum parcel size for"PD's," is an opening of all C-S zoned areas to nearly all types and sizes of offices, provided the required conditions are met. Recent experience and market trends that have emerged since the early 1980's indicate that the demand for large office space is not as strong as was thought during the preparation of the Study. In that time another type of office demand has become more significant-the small firm and start- up or incubator businesses. These firms typically operate on start-up or investment capital with the purpose of seeing if a new concept, product, or service can be produced or will be sustainable or profitable. These businesses typically seek low overhead facilities at they develop their concept or product. Lower cost office space is needed by these firms. Information Presented at Previous Public Hearings and in Previous Staff Reports. Several owners and occupants of C-S projects objected to narrowing the range of uses in the C-S zone, even if existing uses could remain or be replaced in kind. The general opinion expressed was that the C- S zone provided a valuable location for these uses. In previous staff reports, information has been presented describing the existing development in the C-S zone and the capacity for additional development of various kinds. Although precise quantitative information is not available, it appeared that the types of offices at issue could be developed in C-S zones without displacing such uses as research and development or light manufacturing, or retail uses that fit best in C-S zones, and without compatibility problems. Conclusion. The foregoing analysis indicates that the proposed amendment is consistent with the basic planning purpose of providing enough land in the Services and Manufacturing district for the activities desired. The office uses proposed would not adversely affect the Services and Manufacturing district's ability to accommodate the light industrial uses intended, and in fact may provide needed facilities for start-up or incubator design firms. The later benefit furthers the implementation the City's economic development goals in the Land Use Element. The recommended text(attached)would provide for consistency between the existing zoning provisions for offices in the C-S zones and the Land Use Element. (Legal, medical, and some financial services would continue to be allowed only in zones other than C-S and M.) The proposed policy changes would be consistent with the General Plan as a whole. Focused Background: Bakeries in C-S In the most recent batch of revisions to the Zoning Regulations, the City Council decided to not allow retail sales of groceries, liquor., and specialized foods in the C-S zone(except at warehouse stores and convenience stores). Bakeries had been listed parenthetically in the use chart as an example of specialized foods. However, the Land Use Element mentions bakeries specifically in the"purpose" section of Services and Manufacturing as an appropriate use(policy 3.5.1). The intent was to use bakeries as a concise example of food manufacturing, as opposed to a retail bakery. However, the text does not make this obvious. Therefore, staff suggests replacing "bakeries" with"food manufacturing". o:10 Planning Commission Staff Report - Services and Manufacturing Uses Page5 Background: Building Heights The 1994 Land Use Element update includes a section concerning downtown. Much of this section describes the types of activities and public improvements, and the form of buildings, desired in the downtown core. Policy 4.18 addresses the issue of appropriate form for downtown retail areas that are not in the designated core(attached map). It says"buildings should not exceed two stories(about 35 feet in height)". This policy follows from work by an ad hoc advisory group which focused on downtown during preparation of the Land Use Element update. This building height limit was intended to maintain the perception of the core as a horizontally bounded area with the most intense development in the city. It also helps avoid view blockage and overlook for downtown residential areas which the General Plan says should be protected. When considering the recently proposed package of Zoning Regulations changes for General Plan consistency, the Planning Commission determined that Policy 4.18 was appropriate and recommended that the City Council adopt ordinance language that would lower the 45 foot height limit in the C-R zone to 35 feet. The Council hearing process on this amendment packet was initiated but continued until January 21, 1997. During the Council hearings, new testimony on the 35 foot height limit was presented by the Chamber of Commerce, local architects, and drafters of the Downtown Physical Concept Plan. As a result of this new input, the Council appears ready to leave the height limit at 45 feet. Since doing so would require an amendment to the General Plan, the Commission should discuss the issue again and determine whether you want to uphold your earlier recommendation or to propose revised policy language. Environmental Determination The impacts of making the Land Use Element policies match the existing Zoning Regulations have been addressed in previous actions on the Zoning Regulations. There will be no impacts from clarifying policies concerning bakeries. ALTERNATIVES The Commission may recommend that the changes not be approved. The Commission may recommend different language for the text. A policy which is not consistent with the rest of the General Plan would require further amendments to maintain the General Plan's internal consistency. A substantially different amendment may need environmental review before the Commission acts. With regard to the height standard for the C-R zone surrounding the downtown core area, make an alternative recommendation as deemed appropriate. The Commission may continue action. 3-a Planning Commission Staff Report - Services and Manufacturing Uses Page6 RECOMMENDATION 1. Recommend that the City Council amend the General Plan Land Use Element text to allow more types of offices in the Services and Manufacturing category(consistent with current Zoning Regulations), and to clarify the status of small retail bakeries vs. food manufacturing. 2. If appropriate, reaffirm the Commission's previous determination regarding the current Land Use Element height standard for buildings in General Retail areas next to the downtown core. Attached Proposed Land Use Element text amendment - offices, bakeries Map of Services and Manufacturing areas Map of downtown PCR2.CSZ