HomeMy WebLinkAbout09/21/2004, PH1 - PLANNED DEVELOPMENT (PD) AMENDMENT RELATED TO NON-GOVERNMENTAL OFFICE SPACE AT THE WALTER BROTHERS council M--vD-
j acjenaa Report hN
CITYOF SAN LUIS OBISPO
FROM: John Mandeville, Community Development Director
Prepared By: Buzz Kalkowski, Associate Planner
SUBJECT: PLANNED DEVELOPMENT (PD) AMENDMENT RELATED TO NON-
GOVERNMENTAL OFFICE SPACE AT THE WALTER BROTHERS
CENTER LOCATED AT 3250 SOUTH HIGUERA (PD-MOD 95-04)
CAO RECOMMENDATION
As recommended by Planning Commission at a public hearing on August 11, 2004, introduce an
Ordinance which approves modifications to previously adopted Ordinance 1376 (2000 Series),
eliminating the overall size restrictions of non-governmental offices and allowing doctors offices
and medical clinics.
DISCUSSION
Background
The Walter Brothers Center is zoned Office with a Planned Development overlay (O-PD) and
was originally designed to primarily house government offices. There is also a provision for
non-governmental offices in the center with a 2,500 square-foot minimum size limit. This size
limitation for non-governmental tenants was intended to be consistent with General Plan policies
that preserve the downtown as the City's primary professional office district.
The applicant is requesting a modification to their PD zoning to eliminate the 2,500 square-foot
minimum floor area for non-governmental offices. The request does not involve physical
changes. More importantly, the PD restricted percentage of the total office floor area reserved
for governmental uses, quasi-governmental social services uses, and private non-profit social
services uses will not change.
Given recent action by the Council to support expansion of medical office uses throughout the
City, the applicant has requested that "medical clinics" and "doctors offices" be allowed at the
center.
Data Summary
Base Address: 3250 South Mguera Street
Center Addresses Affected: 3190, 3196, 3220 and 3232 South Higuera St.
Applicant: Walter Brothers Construction Company
Zoning: O-PD, Office with the Planned Development overlay
General Plan: Office
� � t
Walter Brothers Center Pla..a ed Development Overlay Modification. _-MOD 95-04
Page 2 of 3
Environmental status: Categorically Exempt under Section 15301, Existing Facilities, of
the CEQA Guidelines.
Site Description
The Walter Brothers Center consists of four parcels totaling f 12.2 acres at the northwest corner
of South Higuera Street and Prado Road. South Higuera runs along the east side of the property
and Prado Road along the south side. San Luis Obispo Creek runs through the western portion
of the lots. Surrounding properties along South Higuera Street are principally zoned Service-
Commercial. The exception is Rancho San Luis Mobile Estates, which is zoned R-2, at the
southeast corner of Higuera and Prado Road.
Project Description
The applicant would like to modify prevailing Ordinance No.1376 (2000 Series) to eliminate
Condition No. 4, which restricts non-governmental offices to a minimum floor area of 2,500
square feet, and modify Conditions No. 5 & 7 to eliminate medical clinics and doctors' offices
from the list of prohibited types of offices (Attachment 2).
A copy of the 8-11-04 Planning Commission agenda report is attached as further background
information for the Council regarding the specifics of the requested modifications, project
history, consistency with General Plan policies and the Zoning Regulations, and Citywide office
supply issues (Attachment 3). There are references included in this report to PD-1541 and
Ordinance No. 1321 (1992 Series). The conditions of this earlier ordinance were incorporated
into the later Ordinance No. 1376 (2000 Series), which is the prevailing ordinance. The
references to the earlier ordinance in the Planning Commission report should be disregarded.
Planning Commission's Action
On August 11, 2004, the Planning Commission unanimously recommended approval of the
proposed modifications to the site's PD zoning, removing the requirement that non-governmental
offices be a minimum of 2,500 square feet in floor area, and allowing doctors' offices as an
allowed type of office use (Attachment 4). There was no public testimony at the hearing.
Commission discussion focused on whether the proposed modifications would have any
potential to adversely impact other office zones in the City. In supporting the modifications, the
Commission concluded that allowing smaller offices and medical uses at the Walter Brothers
Center would not adversely affect the downtown because of the relatively small supply of non-
governmental professional office space available at the site and the low vacancy rate for office
space in the downtown.
Conclusion
With the requirement that non-governmental offices occupy a minimum of 2,500 square feet, the
applicant has found it difficult to efficiently lease space. Because of leasing patterns and PD
restrictions, the applicant is, at times, left with smaller "leftover" floor area, which remains
vacant unless it can be leased to a new or expanding government office. With the PD
amendment recommended by the Planning Commission regarding the size restriction, there is the
1 -a
Walter Brothers Center Planned Development Overlay Modification Pu-MOD 95-04
Page 3 of 3
potential that a maximum of 72,000 square feet of non-governmental office space at this non-
downtown center could be available to smaller tenants. Based on rough estimates, there is
approximately 800,000 to 1,000,000 square feet of office space in the downtown core and
surrounding Office zoned land (per the City's earlier office supply study). The amount of
leasable square footage available for non-governmental tenants in the Walter Brothers Center
amounts to approximately 7-10 percent of the total professional office space in the downtown
and does not change.
The minimum 2,500 square foot non-governmental office limit was originally used as a tool to
prevent competition with downtown office space. Given the robust office market in the
downtown and the relatively low vacancy rate, the Planning Commission concluded that the
potential new smaller professional office spaces that would be available at the Walter Brothers
Center with the proposed amendment was not significant enough to adversely .affect the
downtown office supply and demand.
In supporting a second amendment to allow medical clinics and doctors' offices at the center, the
Planning Commission found the change to be consistent with the Council's support of extending
medical office uses throughout the City.
FISCAL IMPACT
When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which
found that overall the General Plan was fiscally balanced. Accordingly, since the proposed
project is consistent with the General Plan, it has a neutral fiscal impact.
ALTERNATIVES
1. Take no action, thereby leaving the current PD zoning in place.
2. Continue the item for additional information or study, and specify the additional information
or analysis needed.
ATTACHMENTS
1. Vicinity map
2. Ordinance No. 1376 (2000 Series), including Exhibit C, Uses Allowed/Prohibited
3. 8-11-04 Planning Commission Agenda Report
4. 8-11-04 Follow-up Letter with Planning Commission Resolution No. 5405-04 & minutes
5. Draft Ordinance Amending the PD (Planning Commission's Recommendation)
G:\bkalkowski\PD\PD95-04(3250Higuera)WalterBros2500s.f\Walter Bros.Center(PD 95-04).doc
1� 3
. ■
man
■
.� � ananaft ■ o
to an
1■■■■■111■1■■■ On
. I ■■■G�3111■■■■■
I ��. 1111111■111111■�
` l _� 11111111■11111■■
/ ■ 111■1■ 1■1■1■■
11■■1■ 1■1■1■■
songs on
NowA A MEN among
. / i �� ►► ..1:
►rrrnill#
MEN
WME
Io
�1. � s..
_ � "s•"
•= oma_
�••� ��SIIIIIIIIIIII��
VICINITY MAP - No . 95-04
. , : , - - 8 /
0 - era
Attachment 2
ORDINANCE NO. 1376 (2000 Series)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AMENDING THE ZONING REGULATIONS MAP
TO CHANGE THE ZONING MAP DESIGNATION FROM C-N to O-PD AND MODIFYING
THE USE LIMITATIONS OF THE EXISTING PLANNED DEVELOPMENT FOR THE
WALTER BROTHERS OFFICE COMPLEX
AT 3250 SOUTH HIGUERA
(PD 203-99)
WHEREAS, the Planning Commission conducted a public hearing on August 23, 2000, and
recommended approval of the amendment to the City's Zoning Map and modifications to the use
limitations of the existing Planned Development for the Walter Brothers Office Complex; and
WHEREAS, the City Council has held a public hearing on October 3, 2000 and has considered
testimony of other interested parties, the records of the Planning Commission hearing and action,and the
evaluation and recommendation of staff; and
WHEREAS, the City Council finds that the proposed revisions are consistent with the General
Plan, the purposes of the Zoning Regulations and other applicable City ordinances; and
WHEREAS, the City Council has considered the draft Mitigated Negative Declaration of
environmental impact as prepared by staff and reviewed by the Planning Commission;and
BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. The City Council finds and determines that the project's Negative Declaration
with the recommended mitigation therein adequately addresses the potential significant environmental
impacts of the proposed project, and reflects the independent judgment of the City Council. The Council
hereby adopts said Negative Declaration and incorporates the following mitigation measures into the
project:
1. Mitigation Measure: Non-governmental office related uses shall be limited to a maximum of
70% of the gross floor area.
Monitoring Program: Compliance with this requirement shall be monitored through review of
business tax certificate applications for the subject property.
2. Mitigation Measure: Neighborhood grocery markets and delis shall be included as allowed
uses in the Planned Development.
Monitoring Program: Compliance with this requirement shall be monitored through the review
of business tax certificate applications for the subject property.
3. Mitigation Measure: The total gross floor area of the 2.07 acre site shall be limited to 21,395
s.f. in a maximum of two stones.
01376
Ordinance No. 1376 (2000 Series) Attachment 2
Page 2
Monitoring Program: Compliance with this requirement shall be monitored through the review
of detailed plans submitted for architectural review and building permit primarily by the
Community Development Department staff.
4. Mitigation Measure: The granting of an avigation easement shall be required as a condition of
any development approvals.
Monitoring Program: Compliance with this requirement shall be monitored the review of plans
submitted for architectural review and building permits, primarily by the Community
Development Department staff.
SECTION 2. The City Council makes the following findings:
1. As conditioned, the proposed Planned Development rezoning and modifications to the use
limitations of the Planned Development for the Walter Brothers office complex comply with the
City's General Plan including policies for locating social service related office uses at this
location.
2. As conditioned, the proposed PD rezoning and modifications to the use limitations of the
Planned Development for the Walter Brothers office complex will not be detrimental to the
public health, safety or welfare of persons living or working in the area.
3. As conditioned, the proposed amendments to the existing Planned Development provide for
neighborhood serving services which would not be available under conventional zoning.
4. The proposed Mitigated Negative Declaration adequately evaluates and mitigates any potential
environmental impacts resulting from the PD rezoning and modifications to the use limitations.
SECTION 3. The Zoning Regulations map amendment and modifications to the previously
adopted Planned Development use limitations for the Walter Brothers office complex (PD 203-99) is
hereby approved and the property rezoned to Office-Planned Development as shown on attached Exhibit
A (map),Exhibit B (revised conditions), and Exhibit C (allowed and prohibited uses).
SECTION 4. A summary of this ordinance, together with the names of Council members voting
for and against, shall be published at least five (5) days prior to its final passage, in the Telegram-
Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect no sooner
than thirty(30) days after its final passage.
I W
40
Ordinance No. 1376 (2000 Series) Attachment
Page 3 2
INTRODUCED on the 3rd day of October, 2000 AND FINALLY ADOPTED by the Council
of the City of San Luis Obispo at its meeting held on the seventeenth day of October 2000,on a motion
of Council Member Romero,seconded by Vice Mayor Schwartz, and on the following roll call vote:
AYES: Council Members Ewan,Marx,Romero, Vice Mayor Schwartz, and Mayor Settle
NOES: None
ABSENT: None
Mayor Allen e e
ATTEST:
I Wp -,4/1
City
APPROVED AS TO FORM:
*itttjoyJ P fornsen
Attachment 2
Exhibit B
Ordinance No. 1376
Page 1 of 1
SECTION 3. Conditions - Revised
1. Except as otherwise noted in these conditions of approval, all zoning regulations
for the Office zone shall apply.
2. Preference shall be given to governmental social service office uses; owners
shall seek tenants for available lease spaces among local, state, and federal
social service agencies prior to seeking tenants among alternative office uses.
3. Tenants other than governmental social service agencies, quasi-governmental
social services businesses, private non-profit social services providers, and
private offices whose business relates directly and primarily to social services,
shall not occupy more than 70% of the gross lease spaces on the subject
parcels.
4. Tenants other than those listed in No. 2 above shall not occupy less than 2,500
gross square feet of adjacent, interconnected floor area per tenant.
5. The following office-related uses shall be prohibited: banks, real estate offices,
medical clinics, and doctors offices.
6. Applicant shall dedicate a creek maintenance and pedestrian access easement
over that portion of the site within the San Luis Creek Channel, and including a
20-foot buffer strip at the top of bank on both sides of the creek. (Extension of
requirement from previous Use Permit U1401.)
7. Uses allowed and prohibited within this O-PD zone shall be as provided in
Exhibit C attached.
8. All future development shall comply with the City's Creek Setback Regulations to
ensure the maintenance of a healthy creek environment.
� - g
Attachment 2
� f
Exhibit C
Ordinance No. 1376
EXHIBIT C - PD 1541 Page 1 of 3
ALLOWED/PROHIBITED USES - WALTER CENTER
Uses allowed and prohibited within this O-PD zone shall be as provided in the
following list.
Symbols following each listed use shall have the following meaning:
A - Type of use allowed without use permit approval.
D - Type of use allowed if an administrative use permit is approved.
PC- Type of use allowed if a use permit is approved by the Planning.
Commission.
NO- Type of. use which is not. allowed.
* - Type of use which jLnol subject to floor area requirements in
Section 4 above.
**- Type of use for which only incidental and non-customer serving
functions shall be allowed.
Advertising and related services A
Ambulance services NO
Banks and savings and loans NO
Banks and savings and loans A**
(administrative and loan offices only)
Broadcast studios NO
Caretaker's quarters NO
Cemeteries, mausoleums, columbariums NO
Christmas tree sales (see Section NO
17.68.610D)
Churches, synagogues, temples, etc. NO
Circus, carnival, fair, festival, parades NO
(see Section 17.08.010E)
Computer services A
Convalescent hospitals NO
Credit reporting and collection A
Credit unions and finance companies A* *
Delivery and private postal services D
Detective and security services A
beli A
I - 9
Attachment 2
Exhibit C
Ordinance No. 1376
PD 1541 - EXHIBIT c Page 2 of 3
Dwellings NO
Employment agencies A`
Government agency offices and meeting A`
rooms
Homeless shelters (see Section PC
17.08.1 10)
Hospitals NO
Insurance service - local A
Insurance services - regional office A
Laboratories (medical, analytical) NO
Mortuaries NO
Offices (contractors) - all types of A
general and special building contractor's
offices
Offices (engineering) engineers and A
industrial design
Offices (professional) Professional A
offices consistent with the Land Use
Element are allowed. -
realtors, doctors and medical clinics are
prohibited.
Organizations (professional, religious, A
political, labor, fraternal, trade, youth,
etc.), offices and meeting rooms
Photocopy services; quick printers A
Residential care facilities - 6 or fewer NO
residents
Residential care facilities - more than 6 NO
residents
Schools
-Nursery schools, child day care A
-Business trade, recreational, or other D
specialized schools
Neighborhood Grocery A
Attachment 2
Exhibit C
Ordinance No. 1376
PD 1 541 - EXHIBIT .0 Page 3 of 3
Secretarial and related services (court A
reporting, stenography, typing, telephone
answering, etc.)
Social services and charitable agencies A`
Telegram office A
Ticket/travel agencies A
Utility companies
-Corporation yards NO
-Customer account services (bill A
paying and inquiries)
-Distribution and transmission NO
facilities - see Section 17,08.050
-Engineering and administrative A
offices
-Payment drop points A
Veterinarians NO
I
i 1
Attachment 3
CITY OF SAN LUIS OBISPO
PLANNING COMMISSION AGENDA REPORT ITEM# 1
BY: Buzz Kalkowski, Associate Planner(781-7166) MEETING DATE: August 11, 2004
FROM: Ronald Whisenand, Deputy Director
FILE NUMBER: PD 95-04
PROJECT ADDRESS: 3250 Higuera South
SUBJECT: Planned Development amendment to allow non-government offices less than 2,500
square feet.
RECOMMENDATION:
Adopt the attached Planning Commission resolution, which recommends that the City Council
modify PD-1541, deleting.Condition..of Approval.No.A: ,`.`..Tenants other than.those•listed.in No..2: :. . . _
(governmental offices) shall not occupy less than 2,500 gross square feet of adjacent,
interconnected floor area per tenant."
BACKGROUND
Situation
The Walter Brothers Center is zoned Office with a Planned Development overlay that establishes
this center as a prime location for government offices.- Although the primary tenants are
government in nature, the Council has historically allowed a mixture of government and non-
governmental offices in the center. There is, however,a 2,500 square foot minimum size limit to
non-government tenants (professional offices) in an attempt to preserve.the_downtown as the
primary professional office district.
The applicant is requesting a modification to their PD zoning to eliminate the 2,500 square foot
limit for non-government offices. The request does not involve physical changes or changes of
uses. More importantly, the PD restriction percentage of the total office floor area reserved for
governmental uses, quasi-governmental social services uses, and private non-profit social
services uses will not change.
Data Summary
Address: 3190/3196/3220/3232 South Higuera
Applicant: Walter Brothers Construction Company
Zoning: Office—Planned Development
General Plan: Office: Mainly professional and administrative purposes
Environmental status: Categorical Exemption CEQA Guidelines § 15301, Existing Facilities;
§ 15305, Minor Alterations in Land Use Limitations
f - la
y J
Walter Brothers PD-Modification PD-MOD 95-04 Attachment 3
Page 2 of 6
Site Description
The Walter Brothers Center consists 4 parcels totaling t 12.2 acres at the northwest corner of
South Higuera and Prado Road. South Higuera runs along the east side of the property and
Prado Road along the south side. San Luis Obispo Creek runs through the western•portion of the
lots. Most of the area parcels fronting South Higuera Street are zoned Commercial — Service,
with the exception of Rancho San Luis Mobile Estates at the southeast corner of Higuera and
Prado.
Project Description
The applicant is requesting that PD 1451 Condition No. 4 be deleted (Tenants other than those
listed in No. 2 above [government] shall not occupy less than 2,500 gross square feet of adjacent,
interconnected floor area per tenant).
EVALUATION
Zoning Conformance
The Walter Brothers properties located at 3190/3196/3220 South Higuera were rezoned to Office
—Planned Development (O-PD) (Ordinance.No. 1221, 1992 Series) on August 18, 1992. 3232
South Higuera, the fourth Walter Brothers,parcel at South Higuera and Prado Road, remained .
with Neighborhood Commercialzoning until 1999 when it was added to the center and given an
O-PD zoning designation (Ordinance No. 1376, 2000 Series).
Condition No. 2 of the PD requires that "preference be given to governmental social services
office uses; owner shall seek tenants for available lease spaces among local; state and federal
social service agencies prior to seeking tenants among alternate office uses." This condition is
not through the restricted ratio of government related uses to non-government uses (professional
offices). The proposed amendment will not change this ratio so preference will still be given to
government uses.
Condition No. 4 limits the PD so that "Tenants other than those listed in No. 2 above shall not
occupy less than 2,500 gross square feet of adjacent, interconnected floor area per tenant." As
discussed below, this restriction was established as a tool to protect downtown as the City's
primary professional office district. This condition is the one that the applicant requests to be
deleted so they can lease general professional office space without a minimum size restriction.
Condition No. 3 provides that "Tenants other than governmental social service agencies, quasi-
governmental social services business, and private non-profit social services providers shall not
occupy more than 50% of the gross lease spaces." Again, the proposed amendment will not
change this standard.
Condition No. 5 prohibits banks, real estate offices, financial institutions, medical clinics, doctor
offices, and attomey offices within the Planned Development. Given recent action by the
� - f3
i
Attachment 3
Walter Brothers PD-Modification PD-MOD 95-04
Page 3 of 6
Council to support expansion of medical office uses throughout the City, staff recommends that
"medical clinics" and "doctors offices" be eliminated from this condition (Which will now be an
allowed use subject to meeting parking requirements).
General Plan Conformance
The Land Use Element contains numerous policies related to office development in general,
office use of this area of the City, and protection of downtown office districts that surround the
downtown core.
LUE Policy 3.3.2 D., states, "Government social services and regional offices of state and
federal agencies should be near the intersections of South Higuera Street, Prado Road, and
Highway 101 (Figure 5)." In addition, LUE Policy 5.1.6 states that this area should be the social
services hub of the City. Figure No. 5 in the General Plan Land Use Element (Attachment No.
2) shows the Walter. Brothers••South Higuera/Prado Road. properties...to,:.be .within an. area,
designated Public Facilities Areas.
The County Social Service Facilities were relocated from Islay Street and other areas to the
Walter Brothers facility around 1980. In 1992-93, the County developed its own social services `
facility on two parcels totaling 53 acres located nearby at 3411 South Higuera. Up to that time,
County Social Services wasWalter Brothers' largest tenant. Other government tenants
consistent with LUE Policy 3.3.2.D remain at the Walter Brothers Center including the DMV,
ABC, HCO, and Social Security.
LUE Policy 5.1.8, Unrelated Offices, states that public offices not specifically named in the :. .
City's Tri-polar Policy areas (Downtown Civic Center, Health Care Area and Social Services .
Area; LUE Figure 5) should be consolidated at the "social services areas, so long as they are
compatible with and do not displace the government functions which should be located in the
areas.
LUE Policy 5.1.9, Different Offices, allows for "Government and private activities" to be
established in this Social Services area"so long as they are compatible with and do not displace
the government functions which should be located in the areas.
LUE 5.1.2, Private Businesses, nearly repeats LUE 5.1.9 saying that "within any area shown as a
preferred location for public facilities, there my be compatible private businesses, so long as they
do not displace the preferred public agencies." Again the 50% limit on non-governmental office
space at the Walter Brothers Center ensures compliance with these policies.
There is no current evidence to suggest a shortage of governmental, quasi-governmental, and
private non-profit office space. In fact many government offices that have traditionally located in
town have downsized or left the community entirely. The County is currently completing a large
general/administrative office building in the Downtown Civic Center area. LUE 4.17 states the
"City Hall and the County Government Center should remain at their present locations.
Additional administrative office space which cannot be accommodated with the County
l - I �
Y .
Attachment 3
Walter Brothers PD-Modification PD-MOD 95-04
Page 4 of 6
Government Center should be developed nearby within the downtown." Over the next year, the
County will be consolidating office uses into the new facility, freeing up office uses in the
downtown area.
LUE 5.1.11 states the desire for consolidation of government agencies dealing with
environmental quality; such as the Regional Water Quality Control Board and the County Air
Pollution Control District. Although the South Higuera/Prado Road government office area
would be an ideal location for consolidation, their superior agency status allows them to move
anywhere they desire without General Plan conformity. County Air Pollution Control has
recently relocated to Roberto Court, and Water Quality Board to the Aerovista Park in the airport
area. In addition, other non-social services governmental offices are now located at Laurel Lane
(California Parks Department), California Street (State Patrol), and other locations within the
City and outside the Tri-polar areas. All these moves have created vacancies at the Walter
Brothers Center thereby driving the need to allow more flexibility in non-government tenants
(i.e. there are a limited number.of government agencies to fill the existing space in the:center):..... .. ....:.::.......:
The General Plan issue to be decided is not whether non-government office are appropriate in.the
Walter Brothers Center, but whether they should be limited in size. At the time of the initial
rezoning, the Planning Commission and Council were concerned that the creation of professional .
office space at this location could have a negative impact on the downtown if a large.volume of::.
professional office tenants were I to 1eave their downtown location and move to the'.:Walter..: .
Brothers Center. This concern is backed up by LUE Policy 3.3.2, Office Locations, which allows
all types of offices in the downtown and office districts that surround the downtown, ::and
specialized offices (i.e. government, medical, social services etc.) in areas discussed above: ,The
Council supported some professional office use consistent with the sites Office zoning, but added
the present restriction that all non-governmental office space be 2,500 square feet or greater,
which was previously determined by an office supply study to be of limited supply in the
downtown area.
While the General Plan still identifies the downtown as an appropriate area for professional
offices, it does not precluded other "remote" areas that are currently zoned "Office" from having
professional office use. Other "Office" zoned land outside of the downtown where tenant size
restrictions do no exist include Laurel Lane at Orcutt, LOVR at Madonna and Royal Way,
KSBY, and along California Boulevard between Monterey and Highway 101. The applicant
would like the same opportunities to lease to "smaller" professional office tenants as exist in
these other remote areas.
The applicant has stated that difficulties exist in finding suitable tenants, given the 2,500 square
foot limitation on non-governmental office tenants. In leasing space, the applicant is, at times,
left with smaller "leftover" floor area, which remains vacant unless it can be leased to a new or
expanding governmental office.
Walter Brothers PD-Modification PD-MOD 95-04 Attachment 3
Page 5 of 6
Demand for office space
It is the applicant's belief that the downtown area does not have to compete for small office
tenants, and that there is an increase in the demand for small-office space due to the trend to out-
source various office tasks to small consulting businesses. In speaking with three major office-
leasing companies, it appears that the vacancy rate for smaller office space in the downtown area
remains in the 5% or less range, and that little of any leasable space in the 700 to 1,000 square
foot is available in the downtown area. The small one to two person office spaces remain
popular because of the Downtown amenities. At the same time and as reported in an earlier
office supply study, there is an existing demand for larger Downtown spaces of the 2,500 square
feet or larger range. The Downtown office market is considered to be strong. The office
vacancies in the southern area of the City are not as strong as the Downtown area..
_••.. The..Walter Brothers Center•currently contains approximately. 103,000 square.feet of leasable
office space. Although non-government offices currently occupy approximately 47% of the
floor area, the applicant's PD would allow 50% occupancy or 51,500 square feet-for non-
government offices. Though not likely, the proposed change could "free up" 51,500 square feet
for"smaller"professional office space in this non-downtown location.
As stated earlier, the 2,500 square foot limit was originally used as a tool to prevent competition•
with downtown office space... Based on rough estimates, there is approximately 800,000 to
1,000,000:square feet of office space in the downtown core and surrounding:Office zoned.land
(per the City's office supply study). The amount of leasable square footage available for non-
government tenants in the Walter Brothers Center amounts to approximately 5 —6 percent of the
total professional office space in the downtown. Given the low vacancy rate of downtown office
space and the relatively small relationship in available professional office space compared to the
downtown, staff does not feel the change would have any significant impacts on the downtown.
One other benefit to the downtown that the change will help facilitate is with the City's desire to
encourage more housing opportunities in the downtown. Many parcels in the Office zoned lands
surrounding the downtown core contain dwellings. The City continues to experience pressure to
convert these dwellings into office space. With the City's "no net loss"policies, conversions are
always a challenge (Housing Element Policy 3.2.2; 3.3.2). This change could be viewed as
relieving some of the pressure of downtown housing conversions as demand for professional
office space in the City increases.
f ' ! lv
Attachment 3
Walter Brothers PD-Modification PD-MOD 95-04
Page 6 of 6
ALTERNATIVES
1. Approve the request to delete Condition No. 4 from the approved Planned Development (PD
1541) with modifications such as the requirement for an Administrative Use Permit to assess
impacts on a case-by-case basis.
2. Deny the request to delete Condition No. 4. citing potential impacts to the downtown .
inconsistent with General Plan policies.
3. Continue the request for the amendment with specific directions to the applicant and staff.
OTHER DEPARTMENT COMMENTS
:Because.this request does not involves physical changes;comments,from-Public.Works;.Utilities_.
and other Departments were not requested.
Attachments:
1.: Vicinity map -nofi a kchect
•2. General Plan Land Use Element Figure No. 5
3. , Ordinance No. 1221 (1992 Series) including Exhibit A, Uses Allowed/Prohibited G#-X Che-d
. 7,:4., Draft Planning Commission Resolution hot- oL tziCAe'd
CD-PlanlBkalkowski\PD\PD95-04(3250Higuera)WalterBrosRpt
1
Attachment 3
PG Attachment 2
I
i
i
CIVIC CENTER
CULTURAL FACILITIES AREA !
! HEALTH CARE
AREA
( � i
i \
SOCIAL SERVICES
AREA
i
I \
I
FIGURE 5
city of PUBLIC FACILITIES AREAS
4 " san Luis oBispo
PUB-CC.LUE _ „y/9/94
58 Ct1f
�����7►II��IIIIIIfII�IIII ►�iii� I J
I�MAIIII
UIS i�y o san o
990 Palm Street, San Luis Obispo; CA 93401-3249
Attachment 4
August 12, 2004
Walter Brothers Construction
3220 South Higuera Street
San Luis Obispo, CA 93401
SUBJECT: PD 95-04: 3250, 3220, 3232, 3240, 3238, 3190, and 3196 South Higuera
Street
Planned Development Amendment to allow non-government office
spaces with less than 2,500 square feet.
Dear Walter Brothers Construction:
The Planning Commission, at its meeting of August 11, 2004, recommended that the
City Council approve the Planned Development Amendment to allow non-government
office spaces with less than 2,500 square feet, based on the information noted in the
attached resolution.
The action of the Planning Commission is a recommendation to the City Council and,
therefore, is not final. This matter has been tentatively scheduled for public hearing
before the City Council on September 21, 2004. This date, however, should be verified
with the City Clerk's office (805) 781-7102.
If you have any questions, please contact Buzz Kalkowski at (805) 781-7178.
Sincerely,
R aid Whisend
Deputy Community Development Director
Development Review
cc: County of SLO Assessor's Office Attachment: Resolution No. 5405-04
Bruce Fraser
971 Osos Street
San Luis Obispo, CA 93401
�� The City of San Luis Obispo is committed to include the disabled in all of its services,programs and activities.
Telecommunications Device for the Deaf(805)781-7410. I — 1 9
PLANNING COMMISSION Attachment 4
RESOLUTION NO. 5405-04
A RESOLUTION OF THE SAN LUIS OBISPO PLANNING
COMMISSION RECOMMENDING APPROVAL TO THE CITY
COUNCIL OF A PLANNED DEVELOPMENT MODIFICATION
FOR PROPERTY LOCATED AT
SOUTH HIGUERA AND PRADO ROAD
PD-MOD 95-04
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on
August 11, 2004, for the purpose of considering Application PD-MOD 95-04, a request to delete
PD-1514 Condition No. 4., which reads: "Tenants other than those listed in No. 2 (government)
above shall not occupy less than 2,500 gross square feet of adjacent, interconnected floor area
per tenant."
WHEREAS, said public hearing was for the purpose of formulating and forwarding
recommendations to the City Council of the City of San Luis Obispo regarding the project; and
WHEREAS, notices of said public hearing were made at the time and in the manner
required by law; and
WHEREAS, the Planning Commission has duly considered all evidence, including the
testimony of the applicant, interested parties, and the evaluation and recommendations by staff,
presented at said hearing.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
San Luis Obispo as follows:
Section 1. Findings. Based upon all the evidence, the Commission makes the following
findings in support of the project approval as a recommendation to the City Council:
1. The request for deleting Condition No. 4 is consistent with the General Plan because the
Land Use Map designated the property as having an Office use.
2. The approval of the request will not be detrimental to the health, safety or general welfare of
persons residing or working in the vicinity of the subject property, or be injurious to the
general welfare of the City because no demonstrated evidence exists to support that the
change in minimum non-governmental tenant floor area will be detrimental to the City's
desire for a viable downtown and concentrated government centers.
3. The proposed change in the Planned Development condition does not involve a change in
land use and is therefore exempt from environmental review in accordance with the
California Environmental Quality Act (CEQA).
Resolution No. 5405-04 Attachment 4
PD 95-04
Page 2 of 5
Section 2. Recommendation. The Planning Commission does hereby recommend to the
City Council approval of the following changes to PD-1541 (Ord. No. 1221 — 1992 Series):
Conditions
4. Tenants ether- than these listed in No. 2 abeve shall net eecupy less than 2,500 gFess squar-e
feet ef adjaeeRt, inter-eenneeted floor-area per-tenant.
5. Uses allowed and prohibited within this O-PD zone shall be as provided in Exhibit A,
attached.
On motion by Commr. Aiken seconded by Commr. Loh, and on the following roll call vote:
AYES: Commrs. Aiken, Loh, Christianson, Osborne, Boswell, and Caruso.
NOES: None
REFRAIN: None
ABSENT: Commr. Miller
The foregoing resolution was passed and adopted this 11`h day of August 11, 2004.
A4��Iopdd Whisenand ecretary
Planning Commission by:
Attached^Exhibit A, Planned Development Amended Land Use List
f ��
Resolution No. 5405-04 Attachment 4
PD 95-04
Page 3 of 5
EXHIBIT A — PD 1541
ALLOWED/PROHIBITED USES —WALTER CENTER
Uses allowed and prohibited within this O-PD zone shall be as provided in the following list.
Symbols following each listed use shall have the following meaning:
A Type of use allowed without use permit approval.
D Type of use allowed if an administrative use permit is approved.
PC Type of use allowed if a use permit is approved by the Planning Commission.
NO Type of use which is not allowed.
* Type of use which is not subject to floor area requirements in Section 4 above.
** Type of use for which only incidental and non-customer serving functions shall be
allowed.
Advertising and related services A
Ambulance services NO
Banks and savings and loans NO
Banks and savings and loans A**
(administrative and loan offices only)
Broadcast studios NO
Caretaker's quarters NO
Cemeteries, mausoleums, columbariums NO
Christmas trees sales (see Section 17.08.O10D) NO
Churches, synagogues, temples, etc. NO
Circus, carnival, fair, festival, parades NO
(see Section 17.08.010E)
Computer Services A
Convalescent hospitals NO
Credit reporting and collection A
Credit unions and finance companies A**
i
Resolution No. 5405-04 Attachment 4
PD 95-04
Page 4 of 5
Delivery and private postal services D
Detective and security services A
Dwellings NO
Employment agencies A*
Government agency offices and meeting rooms A*
Homeless shelters (see Section 17.08.110) PC
Hospitals NO
Insurance service—local A
Insurance services—regional office A
Laboratories (medical, analytical) NO
Mortuaries NO
Offices (contractors)—all types of general and special A
building contractor's offices
Offices (engineering) —engineers and industrial design A
Offices (professional)—Professional offices consistent A
with the Land Use Element are allowed..Attorneys;
and realtors, are
prohibited.
Organizations (professional,religious, political, labor, A
fraternal, trade, youth, etc.), offices and meeting rooms
Photocopy services; quick printers A
Residential care facilities —6 or fewer residents NO
Residential care facilities —more than 6 residents NO
Schools
-Nursery schools,child day care A
f -33
t
Resolution No. 5405-04 Attachment 4
PD 95-04
Page 5 of 5
- Business trade, recreational, or other D
specialized schools
Secretarial and related services (court reporting, A
stenography, typing, telephone answering, etc.)
Social services and charitable agencies A*
Telegram office A
Ticket/travel agencies A
Utility companies
- Corporation yards NO
- Customer account services A
(bill paying and inquiries)
-Distribution and transmission facilities NO
(see Section 17.08.050)
-Engineering and administrative offices A
- Payment drop points A
Veterinarians NO
SAN LUIS OBISPO Attachment 4
PLANNING COMMISSION MINUTES
August 11, 2004
CALL TO ORDER/PLEDGE OF ALLEGIANCE:
The San Luis Obispo Planning Commission was called to order at 7:00 p.m. on
Wednesday, August 11, 2004, in the Council Chamber of City Hall, 990 Palm Street,
San Luis Obispo.
ROLL CALL:
Present: Commissioners Orval Osborne, Michael Boswell, Alice Loh, Jim Aiken,
and Chairperson James Caruso
Absent: Commr. Andrea Miller
Staff: Associate Planner Phil Dunsmore, Deputy Community Development
Director Ronald Whisenand, and Recording Secretary Irene Pierce
ACCEPTANCE OF THE AGENDA
The agenda was accepted as presented.
APPROVAL OF THE MINUTES:
The Minutes of July 28, 2004 were accepted as presented.
PUBLIC COMMENTS ON NON-AGENDA ITEMS
MaryBeth Schroeder, 2085 Wilding Lane, expressed her opinion of the development in
San Luis Obispo.
There were no further comments made from the public.
PUBLIC HEARING ITEMS:
1. 3250, 3220, 3232, 3240, 3238, 3190, and 3196 South Hiquera Street. PD 95-04:
Planned Development Amendment to allow non-government office spaces with less
than 2,500 square feet; O-PD zone; Walter Brothers Construction, applicant. (Buzz
Kalkowski)
Associate Planner Phil Dunsmore presented the staff report recommending that the City
Council modify PD-1541 by deleting Condition #4 which reads: "Tenants other than
those listed in No. 2 (government offices) shall not occupy less than 2,500 gross square
feet of adjacent, interconnected floor area per tenant."
Bruce Frazier, Frazier Architects, Osos Street, spoke in support of the modification to
eliminate the 2,500 square foot limit for non-government offices.
I -�
Planning Commission Minui. _
August 11, 2004
Page 2 Attachment 4
PUBLIC COMMENTS:
There were no comments made from the public.
COMMISSION COMMENTS:
Commr. Aiken moved staff recommendation to allow non-government offices less than
2,500 square feet. Seconded by Commr. Loh.
AYES: Commrs. Aiken, Loh, Osborne, Boswell, Christianson, and Caruso
NOES: None
ABSENT: Commr. Miller
ABSTAIN: None
The motion carried on a 6:0 vote.
2. 892 Aerovista Place. PD 91-04: Planned Development amendment to allow auto
dealer/repair uses in the Business Park; C-S-PD zone; Brent Smith, applicant. (Phil
Dunsmore)
Associate Planner Phil Dunsmore presented the staff report, recommending that the
City Council amend the approved list of uses for the property's Business Park PD,
adding Auto Sales and Service uses as a conditionally allowable use, and approving a
Mitigated Negative Declaration.
Carol Florence, Oasis Associates, SLO, gave a brief summary of the proposed PD
amendment requesting. She presented an overhead illustration of the proposed
dealership and the businesses surrounding it to show how the dealership will fit into this
area.
PUBLIC COMMENTS:
There were no comments made from the public.
COMMISSION COMMENTS:
Commr. Loh moved the staff recommendation, with the following text added "Auto Sales
and Service uses as a conditionally allowable use"; and 'Trucks and Recreational
Vehicle sales and car rentals shall be prohibited. Seconded by Commr. Osborne.
Commr. Aiken spoke to the aesthetics of the project.
Commr. Christianson expressed a concern on the lighting since this scenic area is the
gateway to the City. She proposed stronger design controls in the PD to insure that the
plan that actually gets constructed is compatible with design guidelines for business
park development.
ATIft �BC�I
ACHMENT.5
ORDINANCE NO. (2004 Series)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING A PLANNED DEVELOPMENT OVERLAY MODIFICATION
FOR THE WALTER BROTHERS CENTER
LOCATED AT 3250 SOUTH HIGUERA STREET (PD 95-04)
WHEREAS, the Planning Commission conducted a public hearing on August 11, 2004,
and recommended approval of the project; and
WHEREAS, the City Council conducted a public hearing on September 21, 2004 and
has considered testimony of interested parties, the records of the Planning Commission hearing
and action, and the evaluation and recommendation of staff; and
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. The City Council finds and determines that the project is categorically
exempt under Section 15301, Existing Facilities, of the CEQA Guidelines because it does not
involve physical changes or changes of use.
SECTION 2. Findings. That this Council, after consideration of Walter Brothers Center
Planned Development Overlay Modification and the Planning Commission's recommendations,
staff recommendations, public testimony, and reports thereof, makes the following findings:
1. The request to delete Condition No. 4 is consistent with General Plan policy regarding the
restrictions on office uses because the Land Use Map designation for the property is Office.
2. The approval of the request will not be detrimental to the health, safety or general welfare of
persons residing or working in the vicinity of the subject property, or be injurious to the
general welfare of the City because there is no demonstrated evidence exists to support that
the change in the minimum floor area for non-governmental tenants at this location will be
detrimental to the City's desire to maintain a viable downtown and concentrated government
centers.
3. The proposed modifications to the Planned Development overlay conditions do not result in
physical modifications to the site or a change in land use, and are therefore exempt from
environmental review in accordance with the California Environmental Quality Act (CEQA).
SECTION 3. Approval & Revised Conditions. The requests for approval modifying
Ordinance No. 1376 (2000 Series), eliminating Condition No. 4 to allow non-governmental
office spaces containing less than 2,500 square feet; and modifying Conditions No. 5 and No.7 to
remove "doctors offices and medical clinics" from the list of prohibited PD uses, are hereby
approved, and are reflected in the following revised conditions:
1. Except as otherwise noted in these conditions of approval, all zoning regulations for the
l - �
Ordinance No. (2004 Series)
Page 2
Office zone shall apply.
2. Preference shall be given to governmental social service office uses; owners shall seek
tenants for available lease spaces among local, state, and federal social service agencies
prior to seeking tenants among alternative office uses.
3. Tenants other than governmental social service agencies, quasi-governmental social
services businesses, private non-profit social services providers, and private offices
whose business relates directly and primarily to social services, shall not occupy more
than 70% of the gross lease spaces on the subject parcels.
4. The following office-related uses shall be prohibited: banks ands real estate offices.
5. Applicant shall dedicate a creek maintenance and pedestrian access easement over that
portion of the site within the San Luis Creek Channel, and including a 20-foot buffer strip
at the top of bank on both sides of the creek. (Extension of requirement from previous
Use Permit U 1401.)
6. Uses allowed and prohibited within this O-PD zone shall be as provided in Exhibit A
attached.
7. All future development shall comply with the Creek Setback Regulations to ensure the
maintenance of a healthy creek environment.
SECTION 4. A summary of this ordinance, together with the names of the Council
members voting for and against, shall be published at least five (5) days prior to its final passage,
in the Telegram-Tribune, a newspaper published and circulated in this City. This ordinance shall
go into effect at the expiration of thirty(30) days after its final passage.
INTRODUCED on the _ day of , 2004, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the day of 2004, on the
following roll call vote:
AYES:
NOES:
ABSENT:
F _ �j
Attachment 5
Ordinance No. (2004 Series)
Page 3
Mayor Dave Romero
ATTEST:
City Clerk Audrey Hooper
APPROVED AS TO FORK.
orney Jonathan P. Lowell
PD 95-04(PD Amendment ordinance)
EXHIBIT A—PD 95-04 Attachment 5
ALLOWED/PROHIBITED USES—WALTER CENTER
Uses allowed and prohibited within this O-PD zone shall be as provided in the following list.
Symbols following each listed use shall have the following meaning:
A Type of use allowed without use permit approval.
D Type of use allowed if an administrative use permit is approved.
PC Type of use allowed if a use permit is approved by the Planning Commission.
NO Type of use which is not allowed.
* Type of use which is not subject to floor area requirements in Section 4 above.
** Type of use for which only incidental and non-customer serving functions shall be
allowed.
Advertising and related services A
Ambulance services NO
Banks and savings and loans NO
Banks and savings and loans A**
(administrative and loan offices only)
Broadcast studios NO
Caretaker's quarters NO
Cemeteries, mausoleums, columbariums NO
Christmas trees sales (see Section 17.08.O10D) NO
Churches, synagogues,temples, etc. NO
Circus, carnival, fair, festival, parades NO
(see Section 17.08.010E)
Computer Services A
Convalescent hospitals NO
Credit reporting and collection A
Credit unions and finance companies A**
Delivery and private postal services D
Detective and security services A
� � =1
Exhibit A of Ordinance No. (2004 Series) Attachment 5
Application No. PD 95-04
Page 2 of 3
Dwellings NO
Employment agencies A*
Government agency offices and meeting rooms A*
Homeless shelters (see Section 17.08.110) PC
Hospitals NO
Insurance service—local A
Insurance services—regional office A
Laboratories(medical, analytical) NO
Mortuaries NO
Offices (contractors)—all types of general and special A
building contractor's offices
Offices (engineering)—engineers and industrial design A
Offices (professional)—Professional offices consistent A
with the Land Use Element are allowed. Realtors are
prohibited.
Organizations (professional, religious, political, labor, A
fraternal, trade, youth, etc.), offices and meeting rooms
Photocopy services; quick printers A
Residential care facilities—6 or fewer residents NO
Residential care facilities—more than 6 residents NO
Schools
-Nursery schools, child day care A
- Business trade, recreational, or other D
specialized schools
Secretarial and related services (court reporting, A
stenography,typing, telephone answering, etc.) Pp
Exhibit A of Ordinance No. (2004 Series) Attachment 5
Application No. PD 95-04
Page 3 of 3
Social services and charitable agencies A*
Telegram office A
Ticket/travel agencies A
Utility companies
- Corporation yards NO
- Customer account services A
(bill paying and inquiries)
- Distribution and transmission facilities NO
(see Section 17.08.050)
- Engineering and administrative offices A
- Payment drop points A
Veterinarians NO