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HomeMy WebLinkAbout7/25/2018 Item 1, Riehl (2) Goodwin, Heather From:Cohen, Rachel Sent:Wednesday, July 25, 2018 5:18 PM To:Advisory Bodies Subject:FW: 790 Foothill - Correspondence for Planning Commission Please forward to the Planning Commission, July 25, 2018 meeting, Item #1. Rachel Cohen Associate Planner Community Development 919 Palm Street, San Luis Obispo, CA 93401-3218 E rcohen@slocity.org T 805.781.7574 slocity.org From: Loren Riehl < Sent: Wednesday, July 25, 2018 5:02 PM To: Cohen, Rachel <rcohen@slocity.org> Cc: Ansolabehere, Jon <JAnsolabehere@slocity.org>; Davidson, Doug <ddavidson@slocity.org> Subject: 790 Foothill - Correspondence for Planning Commission Dear Ms. Cohen: We are in receipt of a letter from Wittwer Parkin (the “Letter”) written on behalf of Foothill Blvd Civic Defense regarding our development project at 790 Foothill (the “Project”). We are responding to that letter because we are concerned that certain misstatements of law and fact within the Letter are likely to cause confusion at our upcoming Planning Commission hearing. Contrary to the assertions of the Letter, we would like to concur with the Staff Report’s determination that the project is categorically exempt from the provisions of CEQA under Section 15332 of the CEQA Guidelines. The Letter’s primary objective appears to be to dispute application of the aforementioned exemption. Section 15332 of the CEQA Guidelines provides that projects shall be exempt from the provisions of CEQA if they are characterized as in-fill development meeting certain conditions. Specifically, the Letter focuses on trying to undermine (to no avail) the application of CEQA Guideline Section 15332(a), which states: (a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations. As discussed at length in the Staff Report, the Project conforms to the requirement of CEQA Guideline Section 15332(a) and the exemption therefore applies. The Letter’s analysis to the contrary must be rejected for several reasons, including, without limitation, the following: 1 1. The letter incorrectly states that environmental review is required because “the Project violates General Plan policies under the City’s Conservation and Open Space element rendering the claimed exemptions inapplicable.” However, this statement appears to be based on a material misunderstanding of the way in which General Plan Elements interact with one another, as such elements must be read together and assumed to be consistent with one another. The Land Use Element (or “LUE”) is considered the “core” of the General Plan. It is driven in part by the other elements and is intended to be consistent with such other elements. With respect to the Project, the Land Use Element specifically prescribes a high density, mixed-use Project on the property and contemplates height exceptions (with or without application of the State’s Density Bonus Law also referred to as CA Government Code Section 65915 or “DBL”). This project is consistent with that express policy, and is not in conflict with any other policies (the Letter does not cite to any express policy directly applicable to the project, rather relies on subjective opinions and interpretations of general provisions in the Conservation and Open Space Element or “COSE”). a. Notably, per the LUE: “The Land Use Element represents a generalized blueprint for the future of the City of San Luis Obispo. Required by State law, it is the core of the General Plan. Starting with conditions at the time of adoption, the Land Use Element sets forth a pattern for the orderly development of land within the City’s planning area.” As it relates to the Project, the LUE expressly indicates the desire for development of this Special Planning Area. b. The LUE goes on to explain that the COSE has the “following key implications for the Land Use Element”…. “The Land Use Element works with this element and incorporates concepts such as clustering and buffering open space areas in order to enhance their protection.” Importantly, the Land Use Element then states “Policies in the Land Use Element and the General Plan Land Use Diagram are designed to be consistent and complementary with all other General Plan Elements.” i. Please also see California Government Code Section 65300.5, which provides that “the Legislature intends that the general plan and elements and parts thereof comprise an integrated, internally consistent and compatible statement of policies for the adopting agency.” c. It is critical to note that state and local regulations mandate that the Land Use Element works in conjunction with the other elements of the General Plan. With respect to the Project, its location has been included within a Special Planning Area designated specifically for the purpose of high density, mixed use development with consideration of building height adjustments (see LUE Section 8.2.1). This Project is based upon the express language of the LUE intended to direct future development of the Project site itself. The Letter advocates for an interpretation that would imply that the express language of the LUE is inconsistent with the COSE, which is not a possible legal or logical interpretation. i. Consistency with the Land Use Element, and specifically Section 8.2.1, is not, and cannot, be in question. In this particular instance, the City desired so strongly to have this particular lot developed for the submitted purpose, that it took the unusual step of designated the site for the exact purpose. ii. Since the Land Use Element must be considered consistent with the other elements of the General Plan, we believe it would be impossible to conclude that the site is inappropriate for the proposed project based on inconsistency with alternate General Plan provisions. In other words, if a high density, mixed-use project is expressly descibed by the LUE then it cannot also be inconsistent with an alternate element, as this would undermine the interpretation rules provided by the City and the State. Instead, the only possible conclusion is that the project is consistent with the General Plan and the relied upon policies in the LUE are consistent with the policies of the COSE. 2 1. It should be noted that the LUE and COSE are consistent with one another. The City has explained that the high density development in this limited Special Planning Area was included in the LUE as a way of preserving open space and view policies contained within the COSE by limiting high development projects to a particular area. So while such an explanation is not required to find the elements consistent, it is helpful to understanding the issue and how these two policies co- exist consistently with one another. d. The proposed interpretation would also conflict with the precedence set by numerous other infill projects throughout the city, including, within the Special Planning Area. th 2. The Letter ignores the holding in Wollmer v. City of Berkeley (193 Cal.App.4 1329) despite reference to such case in the Staff Report and proposed Resolution, and the fact that the case is directly applicable to the Project and definitively rejects the arguments contained in the Letter. a. Wollmer held that development standards relaxed under the density bonus law are not considered “applicable” with respect to review of consistency with the General Plan. This means that application of a height concession by definition can’t cause a project to be deemed inconsistent with the General Plan for purposes of application of a CEQA exemption. b. With respect to the Project, this means that any analysis is invalid claiming that an exemption can’t apply because “the proposed project exceeds the height standard… and the coverage…” and therefore “the City’s claim of exemption from environmental review is wholly improper” (see Section I.b. of the Letter). Such conclusion was expressly rejected by the court in Wollmer. 3. The Letter states that the “City Cannot Bifurcate Approval of the Housing Incentives Which Result in Reduction of Site Development Standards from the Rest of the Project.” a. The Letter states that the procedure places “the City in an untenable situation wherein the City would possibly bind themselves to a decision regarding the approval of reduction of site development standards before considering the legitimacy of the rest of the Project” and under this process the letter posits that “the City would have committed itself to a project without first considering the environmental impacts in violation of CEQA.” i. This position seems to misunderstand the process. Planning Commission has been charged with passing a resolution including environmental review, or in this case, an exemption from environmental review. As the Planning Commissioners are aware, the Planning Commission is reviewing this project before the City Council grants the approval of the concessions. Thus the Letter’s concern is being addressed through the current process. ii. Additionally, the manner of proceeding is expressly consistent with local regulations, including: 1. SLO Municipal Code Section 17.53.020 requires Planning Commission approval of projects located within the Foothill Boulevard/Santa Rosa Special Planning Area. 2. Section 17.90.040(A) states that the City Council shall approve any requested concessions. 4. The Letter’s DBL analysis must be completely disregarded, as it appears to be citing an outdated version of the DBL, and accordingly, the requirements highlighted no longer apply. In fact, there have been several updates to the law since the burden of proof fell on the applicant as insinuated in the Letter. a. Section 65915(d)(4) states that “The city… shall bear the burden of proof for the denial of a requested concession or incentive.” b. Additionally, the DBL Section 65915(d)(1) states that the City “shall grant the concession or incentive requested by the applicant unless the city … makes a written finding…” (emphasis 3 added). The burden is on the city to justify denying the concession and not on the applicant to justify granting the concession. c. It should also be noted that the DBL expressly states that relaxation of development standards is “an identifiable and actual cost reduction, consistent with subdivision (k)”, as subdivision (k) establishes “reduction of site development standards” as a valid concession. This means that by law the concession is consistent with subdivision (k) and a claim of the concession not resulting in “identifiable and actual cost reductions” must be rejected. d. Under the DBL, a city can’t shift the burden to an applicant to demonstrate the necessity of the concessions, as demanded in the Letter. 5. The Letter incorrectly states “the applicant has made no indication whether the purported very low- income studios will be offered for sale or rent or the proposed factors which will make the twelve studios affordable to very-low income households.” a. The Project Description within the submitted plan set states expressly that the units are “rent- restricted for Very Low Income Households… in accordance with California Government Code Section 65915.” Furthermore, this project is not a condo project (and no subdivision is sought), so by definition the units are not available individually for sale. b. Contrary to the Letter’s assertions, the DBL provides extensive detail regarding the factors applicable to determining affordability to Very Low Income households. See e.g. California Government Code Section 65915(c)(1). c. To the extent there is concern regarding the lack of a condition of approval to restrict the affordable units, we do not object to inclusion of any such condition, as such condition already applies by virtue of reference to the DBL. 6. The Letter also ignores the following critical information applicable to the Project contained within the submitted plan set under Project Description: “Furthermore, both of the foregoing concessions are required under CA Government Code Section 65915(e)(1), which requires that a city may not apply any development standard that will have the effect of physically precluding the construction of a development. It would be physically impossible to construct the project with the density bonus as required by state law.” a. While such an analysis is not required, it should be noted that even if the concessions were not granted, they would additionally be required under CA Government Code Section 65915(e)(1), as it would be physically impossible to build the project with the density bonus without such waiver of development standards. i. Given the substantial site constraints, such analysis is straightforward and simple. Approximately 1/3 of the units are located on the added floor of the building. The density bonus is approximately 1/3 of the units. If the height concession was not provided, the density bonus could not be accommodated. The lot coverage exception works in a similar way, as without that concession, fewer units would fit per floor. 7. In reviewing this process, we believe that the Commission should also consider SLO Municipal Code Section 17.90.070(A), which states that Projects subject to the density bonus provisions “shall receive high priority processing, to the extent allowed by law.” Please let me know if you have any questions or comments. Thanks. 4