HomeMy WebLinkAbout08/20/2002, PH 4 - REQUEST TO ACCOMMODATE PROPOSED BUILD-OUT OF THE IRISH HILLS SOUTH AREA (DEVAUL RANCH SOUTH PROJECT council "°*`°'"Aug.20,2002
j acEnaa Report ,� ��
CITY OF SAN LUIS OBISPO
FROM: John Mandeville, Community Development Director
Prepared By: Glen Matteson,AAssociate Planner
SUBJECT: REQUEST TO ACCOMMODATE PROPOSED BUILD-OUT OF THE
IRISH HILLS SOUTH AREA (DEVAUL RANCH SOUTH PROJECT),
INVOLVING CHANGES TO RESIDENTIAL GROWTH MANAGEMENT.
CAO RECOMMENDATION
Adopt a resolution amending the Residential Growth Management phasing schedule, to allow an
additional 16 dwellings in the Irish Hills South area during the current interval, by updating the
total number of dwellings allowed and by shifting 11 dwellings from the Margarita Area.
DISCUSSION
Background
Since the 1970's the General Plan has said average annual population growth should not exceed
one percent after 1990, and the City has had Residential Growth Management Regulations to
implement that policy (Municipal Code Chapter 17.88, and Resolution No. 9161's phasing
schedule [Attachment #2]). The regulations establish a development schedule for the major
annexation areas. The timing of infill projects is assumed, but not regulated. Dwellings
affordable to residents with low incomes, as defined in the Housing Element, are exempt from
the growth policy and the regulations. All numbers in this report exclude dwellings affordable to
very-low or low-income households, where costs and occupant eligibility are controlled.
According to the General Plan, expansion areas that will provide the most affordable housing and
other community benefits, such as open space protection, should develop first. Because the
General Plan also has requirements for housing affordability, open space protection, and
provision of public facilities, differences among the residential expansion areas in terms of
overall community benefit were not seen as major. As a result, the phasing schedule was decided
mainly by the readiness of the expansion areas to proceed. That in tum was largely a
consequence of where the areas were in the process of adopting development plans and specific
plans, and annexation. Another objective is to minimize the time that an emerging neighborhood
is a construction zone.
The regulations call for annual review of the status of residential building in relation to the
adopted schedule, and allow for revisions to the schedule. When the schedule was adopted, it was
recognized that revisions probably would be needed to better match City goals with changing
conditions. The revisions could allow allocations to be shifted among areas, but would not affect
the policy of one-percent growth. Normally, a request such as the subject of this report would be
considered as part of the annual review, usually conducted in March. However, the applicants
hope to obtain building permits in the next month or so for some secondary dwellings and
apartments, which could otherwise be delayed several years.
Council Agenda Report—Residential Growth Management phasing revision
Page 2
The phasing schedule is meant to eventually allow for the expected maximum number of
dwellings in each area, based on the General Plan and in-progress or approved specific plans and
development plans. When the schedule was last revised, in March 2001 at the request of the Irish
Hills North developer, the Irish Hills South area was described as containing 123 dwellings.
However, plans noted the potential for 17 secondary dwellings. Intermediate plans showed
several of the houses with "flexible space" over detached garages, with the idea that individual
owners could initially or later use the space as bedrooms, hobby rooms, home offices, or
secondary dwellings, upon obtaining necessary permits.
A secondary dwelling is a small apartment that usually must be attached to the primary dwelling,
where one of the two dwellings must be occupied by the property owner. Secondary dwellings
are allowable without regard to the maximum residential densities set for the R-1 and R-2 zones.
Up to 17 secondary dwellings where enabled for the Irish Hills South area, and 13 were actually
required, as part of a Planned Development (PD) overlay zone. The PD zone allows additional
flexibility subject to City Council approval at the time it is adopted.
Apparently because developers and City .staff assignments have changed since the project was
first reviewed, there has been confusion about the number of secondary dwellings, when they
would be built, and their status under Residential Growth Management. The current applicant,
R.W. Hertel & Sons, Inc., now proposes that 16 secondary dwellings be built as part of the initial
construction. This proposal is mainly in response to a condition of City approval that requires at
least 13 secondary dwellings be built initially (Ordinance No. 1385, April 24, 2001). The
proposal would result in a total project capacity of 139 dwellings.
The Irish Hills South area was eligible for 53 dwellings in the 1999-2001 period. These were
considered allocated, because building permits for those dwellings were undergoing City plan-
check at the end of 2001.* To complete the project, Hertel intends to obtain permits for 86
additional dwellings by the end of 2002, while the phasing schedule allows 70 dwellings any
time in the 2002-2004 period. The difference between 70 dwellings allowed and 86 proposed is
due to the 16 secondary dwellings. However, there is no requirement that the 70 dwellings now
allowed be any particular type of dwelling.
Evaluation
Locally, development of rental housing has not kept pace with demand. Rental units help meet
the housing needs of workers and students. Construction in the Irish Hills area—both the northern
and southern components— has not proceeded as quickly as originally intended. If the request is
not approved, completion of some secondary dwellings or apartments would be further delayed.
Building the secondary dwellings as part of the initial development assures that City standards
will be met. Leaving them for individual owners to pursue later could add to enforcement
problems, and would eventually require an amendment of the phasing schedule if they are to be
counted.
* This was affirmed on April 9, 2002, by Council acceptance of the Annual Report on the
General Plan for 2001. That report mistakenly reported 46 dwellings allocated due to permits in
plan check. The discrepancy between 46 and 53 dwellings is due to a miscommunication about
seven dwellings that are affordable to moderate-income residents, which are not exempt.
Council Agenda Report—Residential Growth Management phasing revision
Page 3
The number of dwellings allowed citywide for the 2002-2004 period, with one-percent average
annual growth, can be increased by five, from 585 to 590, based on there being 19,464 dwellings
at the end of 2001. This means that only 11 dwellings need to be shifted from other areas to
allocate Irish Hills South the desired 16 additional dwellings (recommended revision,
Attachment#3).
Shifting 11 dwellings from the Margarita Area will not have a substantial affect on that area. The
Margarita Area was allocated 77 dwellings in 1999-2001, which were not used, and 275
dwellings in 2002-2004, for which no building applications have been submitted. Margarita Area
development has been delayed while its draft specific plan is revised in response to the Airport
Land Use Plan, though several owners in that area want to develop as soon as possible.
Council's annual review of Residential Growth Management in Spring 2003 is likely to involve
more substantial potential changes, including the following (see location map, Attachment#1):
Reducing the build-out capacity of the Margarita Area, in response to the Airport Land
Use Plan and associated Council direction;
• Reducing residential potential for the Dalidio property, in line with Council direction on a
development agreement for the Dalidio (Marketplace) project;
• Assuming a higher number of in-city dwellings, to reflect rezoning of potential infill sites
such as land near Broad Street and Orcutt Road, in line with recent Planning Commission
and Council interest in infill housing;
• Increasing the capacity of the Orcutt Area, as at least partial compensation for reduced
capacity in the Margarita Area and the Dalidio property.
The secondary dwellings should be accounted for under residential growth management,
because:
• The phasing schedule includes a note that "This is a simple count of dwellings and is not
meant to reflect the Zoning Regulation's method for calculating fractional dwellings."
• This approach was described to all expansion-area owners during the 2001 discussion of
amending the phasing schedule.
• Not counting them would set a precedent for other expansion areas, which may contain
significant numbers of secondary dwellings.
Environmental Determination
Staff has determined that revising the phasing schedule is not a project for purposes of
environmental review. It does not have a potential for physical impacts to the environment. The
revision deals with procedures to implement policies and plans that have been adopted, following
their own environmental review. This determination is consistent with Council action on the
previous revision of the phasing schedule.
FISCAL IMPACT
The recommended action will have no substantial affect on City costs or revenues.
4-3
Council Agenda Report—Residential Growth Management phasing revision
Page 4
ALTERNATIVES
Council may approve the request, but allow more dwellings in the Irish Hills South area by
shifting them from an area other than Margarita, or from some combination of areas. This
approach is not recommended because it is logical to slightly reduce the current allocation for the
area that is expected to have a lowered overall capacity based on previous Council direction.
Council may determine that secondary dwellings are not to be counted as part of residential
growth management. A note would be added to the schedule so such a determination will be
consistently applied. This approach is not recommended for the reasons listed above under
"Evaluation."
Council may deny the request. With this action, the applicants would have to wait at least until
the next comprehensive review of residential growth management, expected to occur in Spring
2003, to know if and when they could obtain permits to complete the project as now proposed.
Staff does not support this approach because a relatively minor adjustment to the schedule can
accommodate the desired project.
Council may continue action.
Attachments
#1 —Location map for named expansion areas
#2—Adopted phasing schedule
#3 —Draft resolution amending the phasing schedule, as recommended
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Attachment#1
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Attachment#3
RESOLUTION NO. XXXX (2002 Series)
A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL
AMENDING THE RESIDENTIAL GROWTH MANAGEMENT
PHASING SCHEDULE
WHEREAS, the City Council held a hearing on the proposed amendment on August 2,
2002; and
WHEREAS, the Community Development Director has determined and the City Council
hereby concurs that the proposed amendment is not a project under the California Environmental
Quality Act,because it has no potential for physical changes to the environment; and
WHEREAS, the proposed amendment is consistent with the General Plan and the
Residential Growth Management Regulations, specifically by:
Encouraging the timely production of housing, including affordable housing;
Allowing development consistent with land use designations, zoning, and approved
development plans, and subject to availability of resources and services; and
Maintaining a citywide population growth rate not exceeding an annual average of one
percent.
BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
The Residential Growth Management Phasing Schedule, most recently amended March 6,
2001,by Resolution No. 9161, is hereby amended as shown in the attached Exhibit A.
On motion of seconded by and on the following roll
call vote:
Ayes:
Noes:
Absent:
the foregoing resolution was passed and adopted this day of 2002.
Mayor Allen Settle
ATTEST:
City Clerk Lee Price, CMC
APPROVED AS TO FORM:
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