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HomeMy WebLinkAbout07-30-2014 PC MinutesSAN LUIS OBISPO SPECIAL MEETING PLANNING COMMISSION MINUTES July 30, 2014 CALL TO ORDER /PLEDGE OF ALLEGIANCE ROLL CALL: Commissioners Hemalata Dandekar, Michael Draze, John Fowler, Ronald Malak, William Riggs, Vice - Chairperson Michael Multari, and Chairperson John Larson Absent: None Staff: Community Development Director Derek Johnson, Community Development Deputy Director Kim Murry, Senior Planner Phil Dunsmore, Deputy Director of Public Works Tim Bochum, Assistant City Attorney Jon Ansolabehere, and Recording Secretary Diane Clement ACCEPTANCE OF THE AGENDA: The agenda was accepted as amended. The agenda forecast was moved to the beginning of the agenda. PUBLIC COMMENTS ON NON - AGENDA ITEMS: There were no comments made from the public. PUBLIC HEARINGS: 1. 276 Tank Farm Road. SPA 92 -08: Review of amendments to Chapter 8, Public Facilities Financing Plan, of the Airport Area Specific Plan; Chevron, applicant. (Phil Dunsmore) Commr. Draze recused himself from the meeting. He has a financial interest in property near the Airport Area Specific Plan boundary. Senior Planner Dunsmore presented the staff report, recommending the Planning Commission adopt a resolution recommending approval of amendments to Chapter 8 of the Airport Area Specific Plan, amending the Public Facilities Financing Plan. PUBLIC COMMENTS: C. M. Florence, SLO, representing a commercial property being developed in the Airport Area, supported the recommendation. John Wallace, SLO, owner of land in the Airport Area noted that the reduced fees would still be very high. He recommended the consultant and staff reconsider the allocation of percentages to future projects and give further consideration to a Community Facilities Planning Commission Minutes July 30, 2014 Page 2 District because it would allow payments to be paid over time. He also asked that revising the fee structure be considered if the City gets unanticipated grants. Bill Almas, SLO, representing the Chevron remediation and development project, stated that staff is making a sincere effort to develop infrastructure but the problem is almost unsolvable because the sources of financing are missing and the basis for allocation of fees is not explained. He noted that Chevron will incur significant excess costs beyond the fees and it is essential that the fees be reliable and known. He asked the Commission to uphold its recommendation taken in May 2014 to support certification of the EIR to allow the project to move forward. Ty Safreno, SLO, stated that developers in the airport area will be paying for Tank Farm Road improvements which benefit all of San Luis Obispo and portions of the County. He indicated that benefits from the improvements are far less than the cost burden assigned to future development. Charlene Rosales, SLO Chamber of Commerce, supported the staff recommendation as a step toward clarity and help in identifying new tools. She stated that the Chamber wants a more feasible fee structure and better financing opportunities, and would look favorably upon relieving some of the burden on the Airport Area developers. Bill Thoma, SLO, supported the comments of all previous speakers. He noted that the Airport Area is an economic engine for the City and there is a need to further reduce fees and that, if Chevron does not move forward, neither will other businesses. There were no further comments made from the public. COMMISSION COMMENTS: Commr. Larson stated that forwarding the Chapter 8 Financing Plan to the Council and finalizing the EIR for the Chevron property are not necessarily linked. He added that all of the public speakers noted that this is a difficult task. He noted that other infrastructure, specifically fire service, is not included in the plan. Community Development Director Johnson stated that, following adoption of the Margarita Area and Airport Area Specific Plans, the Fire Department adopted a fire master plan which identified response time deficiencies in the southern annexation areas. Since the specific plans were adopted prior to the master plan, the plans were not designed to accommodate enhanced emergency response; therefore, this issue was identified as an impact in the FEIR. Commr. Multari stated that improvements required for airport area development are primarily to support new development with circulation and other infrastructure. He noted that it is an important political policy question for the Council as to whether the City wants this development and, if the message from property owners is that fees are too high and the community does want it, then the City has to pay for the difference. He added that there are several ways to pay: cash from the general fund, grants, and /or city -wide fees or by spreading the cost out among future owners in a Community Planning Commission Minutes July 30, 2014 Page 3 Facilities District which would require a two - thirds vote in support. He stated that, short of that, the fees would have to be subsidized and the City would have to come up with $17 million to complete the necessary infrastructure and that is the part that benefits the community city -wide. Commr. Riggs commended the presentation and agreed with Commr. Multari about a CFD being unlikely to achieve. He noted that the City faces a paradox about wanting growth but imposing fees that would suppress that growth. Commr. Fowler noted that a discrepancy between the staff report and the Goodwin report that shows up in the chart on page 1 -24. Senior Planner Dunsmore stated the chart will be updated to match the latest Goodwin report and that the numbers will continue to evolve and may not be what will actually be charged to a project. He added that this effort is a snapshot in time that estimates costs. Commr. Fowler commended the plan but noted it is a moving document and his inclination is to support this but recognize that more work needs to be done. Deputy Director of Public Works Bochum noted that a request for a change on the part of a large project could cause changes in land use and impact circulation. He added that circulation issues arise due to incoming regional traffic and the best resolution is to go after grants and /or to the County for funding. Director Johnson stated that it is important to remember that when the LUCE update concludes, we will need to revise the city -wide impact fee program based on a new policy framework. He noted that there are many different factors that go into consideration of development fees and how to finance infrastructure. He added that one big question is whether fees are barriers to development and that ultimately the marketplace will drive the demand and determine development because, as adjacent areas in the County are built out, there will be more demand in the Airport Area. Commr. Multari pointed out that a Mello -Roos District would impose fees immediately even if building does not happen for 20 years. He stated that he thought the Goodwin report made gross assumptions and did not consider factors like pace of development, and that those assumptions do not reflect a very accurate picture of what might really happen. He noted that the proposed development agreement with Chevron is another issue and that information has not been provided regarding the terms of what the City is giving Chevron and vice versa but that any requirements associated with remediation and mitigation should not be counted as a public benefit since Chevron is required to provide those improvements. Commr. Multari stated he does not think Chapter 8 is particularly well written and that the section on City financing policy could be an appendix. He noted that cost estimates are not discussed until page 1 -18, there is a need to include other components such as storm drainage improvements, and that sewer and water are only included near the end. He concluded by saying these are not substantive problems. Planning Commission Minutes July 30, 2014 Page 4 Commr. Larson stated he is not sure it is not substantive. He noted that staff tried to update parts of a document written years ago, which makes the chapter somewhat awkward. Commr. Fowler noted that a correction is needed on page 1 -15 under Factors Favoring Pay -As- You -Go Financing where "are" or "will" should be inserted, and on page 1 -17, second paragraph, third line, it should say "market driven development cycles." Commr. Larson summarized the issues: there is infrastructure to build, mostly roads; water and sewer facilities are not explicitly addressed; it will cost a lot of money; there are only a few ways to pay; fairness is important; fees need to be collected either city- wide or in just this area; the public speakers all had the same concerns; it is clear more work is necessary; information about using a CFD was provided but not recommended although only the property owners would be voting to accept or reject it. He added that privately negotiated development agreements are possible and the only way to reduce fees is to throw out some improvements or come up with alternatives for funding. He noted that staff will continue identifying alternatives but there will not be any resolution until the development community is organized enough to cooperate with staff in finding solutions. He concluded that this report does not resolve anything but it is better than the reports in 2005 and last May. Commr. Fowler stated that it is easier to have development pay rather than try to help out by finding grants or using city -wide financing. Commr. Dandakar stated that during discussions at the LUCE Task Force meetings, members were supportive of development, especially in areas with specific plans, but that costs should not be passed on to other neighborhoods or city -wide, and that development was not considered helpful if it negatively impacts quality of life or cost of living. She noted that the Task Force supported densification and a pedestrian and bike friendly model for the City and that people were willing to think about special grants and fees to make the City more accessible but that fees for development should be paid by the developers. She questioned whether this development should be done if it results in city -wide fees. Commr. Multari asked Commr. Riggs if he had any thoughts about how transportation in the future might be different from now. Commr. Riggs stated that he thinks we will see self- driving cars in less than five years because the technology is there and that the current model based on the EIR is from the 1970s. He noted that with the LUCE update, we are dealing with the community wanting a softer future with walkability, bike - ability and a future of health. Commr. Multari stated that he has had similar thoughts that in the future the concern about widening roads might not be as acute as it is in the way we look at things now. Director Johnson stated that this is ultimately a policy decision for the Council and that, over the next year, staff can look at strategies for funding and figure out where the City should be making investment to get the kind of growth wanted. He noted that the Planning Commission Minutes July 30, 2014 Page 5 numbers create a feasibility question for developers. He stated that staff would like to move forward with the Chevron EIR to start remediation, which will take years, and hope to resolve fee issues by the time Chevron turns to development. Deputy Director of Public Works Bochum stated that the LUCE update could result in a fundamental and profound shift toward bikeways and pedestrian paths. Commr. Riggs stated that this has been one of the most honest conversations he has seen with the Commission and staff. He noted that staff is dealing with changing factors and he is willing to approve this resolution and forward it to Council. Commr. Malak stated that he appreciates the report but that it does not really have any recommendations. He added that he is supportive of moving it forward but stated that he will vote no if the resolution is not amended in section 1, finding 3, which he interprets as giving funding priority to bike infrastructure and he has concerns about other special interests coming in to push for what they want. After a discussion, it was decided that finding 3 would be amended and finding 4 would be deleted. Commr. Riggs made a motion to adopt the Resolution and the following discussion ensued. Commr. Dandakar asked if the Commission is going to endorse the way suggested by Commr. Multari to separate things that are specific to this plan and those that are more city -wide. Commr. Larson stated that the financing plan, though far from complete, is at the point where it allows focus on policy issues, so it is appropriate to send it forward but staff should continue to work on it. He noted that it is likely this will be revisited after the city- wide changes to the General Plan so he approves the staff recommendation as amended for finding 3 and deleting finding 4. Commr. Multari stated he supports the motion but is disappointed with the Goodwin report. Commr. Malak expressed concern about the effect not sending it forward would have on the EIR which he stated he wants to see move forward. He asked if the LUCE update would result in radical changes in the financing plan. Deputy Director of Public Works Bochum stated that it will do so and that there are fundamental policy level decisions that will need to be made due to this shift. He added that moving this forward freshens up the document which is ten years old and that the changes in costs and fees will mean projects will pay the new fees between the time the AASP is updated and when city -wide fee discussions occur subsequent to the LUCE. Community Development Director Johnson stated that the City needs to have policy in place to start negotiations with Chevron. Planning Commission Minutes July 30, 2014 Page 6 Commr. Fowler stated he will support the motion and agrees with Deputy Director Bochum's statement. There were no further comments made from the Commission. On motion by Commr. Riqqs, seconded by Commr. Malak, to recommend the Cit Council adopt a resolution approving amendments to Chapter 8 of the Airport Area Specific Plan amending the Public Facilities Financing Plan with finding 3 to read "will provide funding necessaty for the anticipated develo ment in the airport area plan and will heho finance the improvements to keV circulation features in the plan area" and deleting finding 4. AYES: Commrs. Dandekar, Fowler, Larson, Malak, Multari and Riggs NOES: None RECUSED: Commr. Draze ABSENT: None The motion passed on a 6:0 vote COMMENT AND DISCUSSION: 2. Staff a. Agenda Forecast by Kim Murry • August 13, 2014: 625 Cuesta -- appeal, 2701 August -- review of conversion of a secondary dwelling, review of standard conditions • August 27, 2014: LUCE update, 500 Mountain View -- appeal, 43 Prado Road -- parking program, 3080 Rockview -- subdivision 3. Commission • Commr. Riggs not available for meetings the last week of August. • Commr. Draze will be absent from meetings the last week of August. ADJOURNMENT: The meeting was adjourned at 9:03 p.m. Respectfully submitted, Diane Clement Recording Secretary Approved by the Planning Commission on August 13, 2014 Lauri6 Thomas Administrative Assistant III