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HomeMy WebLinkAboutItem 5 - Staff ReportCHOLA VISTA PLANNING COMMISSION AGENDA STATEMENT Item: 5 Meeting Date: 11-04-2016 ITEM TITLE: Public Hearing: MPA16-0015, MPA16-0016, MPA16-0008, PCS16- 0002, PER16-0001 Consideration of amendments to the Chula Vista General Plan, the Otay Ranch General Development Plan, the Otay Ranch Village 3 North and a Portion of Village 4 Sectional Planning Area (SPA) Plan, a ne_w Tentative Map for Chula Vista Tract 16-02, and an Addendum to Final Environmental Impact Report 13-01 APPLICANT: HomeFed Village III Master, LLC SUBMITTED BY: Janice Kluth, AICP — Senior Project Coordinator/Project Manager REVIEWED BY: Kelly Broughton, Development Services Director INTRODUCTION The Otay Ranch Village 3 North and a Portion of Village 4 Sectional Planning Area (Village 3), located at Heritage Road and Main Street (Attachment 1), was approved in December 2014 (Otay Ranch Village 3 North and a Portion of Village 4 Sectional Planning Area Plan, et. ao, with 1,597 housing units, Office and Industrial uses, Community Purpose Facilities, Open Space and Preserve, a Neighborhood Park and a School site on approximately 436 acres of land. Today the land is owned by HomeFed Village III Master, LLC (Applicant), and the Applicant is proposing amendments to the approved SPA and related planning documents, as well as a new Tentative Map, in order to reconfigure lots, realign streets and modify land uses to make the project more marketable (the "Project"). The revised Village 3 Plan remains consistent with the 2014 residential authorization and the development area remains substantially within the boundaries of the previously analyzed development footprint. As proposed, the Project requires amendments to the Chula Vista General Plan, the Otay Ranch General Development Plan, and the Village 3 SPA Plan, as well as a new Tentative Map and an Addendum to Final Environmental Impact Report (FEIR) 13-01. Item Permit General Plan Amendment MPA16-0015 General Development Plan Amendment MPA16-0016 SPA Amendment MPA16-0008 Tentative Map PCS16-0002 Addendum to FEIR 13-01 PER16-0001 Updated November 7, 2016 Planning Commission November 7, 2016 Item 5 Page No. 2 ENVIRONMENTAL REVIEW The City's Director of Development Services has reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and determined that the Project is substantially covered in the previously adopted Final Environmental Impact Report for the Otay Ranch University Villages Project - (FEIR 13-01) (SCH #2013071077), that only minor technical changes or additions to this document are necessary, and that none of the conditions described in Section 15162 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, the Director of Development Services has caused the preparation of an Addendum to FEIR 13-01 (PERI 6-0001) for consideration. For information, the proposed Water Quality/hydromodification basin south of Main Street is outside the boundaries of the FEIR 13-01 but was previously evaluated in the Villages 2, 3 and a Portion of Village 4 Environmental Impact Report (2006). RECOMMENDATION That the Planning Commission adopt Resolution MPA16-0015; MPA16-0016; MPA16-0008; PCS16-0002; PER 16-0001, recommending that the Chula Vista City Council (Council) approve: 1) A Resolution considering the Addendum to FEIR 13-01 and amending the Chula Vista General Plan and the Otay Ranch General Development Plan; and 2) A Resolution approving amendments to the Otay Ranch Village 3 North and a Portion of Village 4 Sectional Planning Area (SPA) Plan; and 3) A Resolution approving the Otay Ranch Village 3 North and a Portion of Village 4 Tentative Map; and 4) An Ordinance amending the Planned Community District Regulations in the Otay Ranch Village 3 North and a Portion of Village 4 Sectional Planning Area (SPA) Plan; and DISCUSSION Chula Vista General Plan (CVGP) Applicant proposes to amend very limited portions of the CVGP to facilitate implementation of the development plan for Otay Ranch Village 3. With the proposed amendments, the Village 3 project will remain consistent with the Chula Vista General Plan's Land Use & Transportation, Economic Development, Housing, Public Facilities & Services, Environmental and Growth Management objectives and policies. The proposal includes amendments to CVGP land use designations for the site, as shown in Attachment 3 and Table 1. The proposed Village 3 plan remains compatible with adjacent land uses, and no impacts to adjacent development are anticipated. Planning Commission November 7, 2016 Item �5 Page No. 3 Table'l ,Coni arison.of Land Uses..2014 SP.A to 2016 Pr"o".ect Larid Uses'Arlalyed Proposed Project Ladd 000verl vs Proposed - Iin.2014.).��.I>� . ixses ' . _....: X ancl„11ses ....: Land"Use:' . . Aches TTtiits_.. .!.Acres'_.. .. Units' ,.. Atkes........ V its...:.; Low Medium Residential 10.5 51 0 0 -10.5 -51 Medium Residential 122.4 951 116.8 880 -5.6 -71 Medium High Residential 0 0 25.3 439 +25.3 +439 Mixed Use Residential 14.6 595 7.4 278 -7.2 -317 Mixed Use Commercial 11.3 0 0 0 -11.3 0 Prod & Office Commercial 0 0 8.3 0 +8.3 0 Industrial 39.9 0 40.6 0 +0.7 0 Park 7.9 0 8.1 0 +0.2 0 Open Space 129.5 0 129.5 0 0 0 Other 32.3 0 32.4 0 +0.1 0 TOTAL 368.4 1,597 368.4 1,597- OA 0 The Project supports a number of CVGP Objectives, but a few of the more pertinent objectives are identified below: • CVGP Objective LUT 5 Designate opportunities for mixed-use areas with higher density housing that is near shopping, jobs and transit in appropriate locations throughout the City. * CVGP Objective LUT 61 — Create balanced communities that can provide high quality of life for residents. ® CVGP Objective LUT 72 — Develop comprehensive, well integrated, and balanced land uses within villages and town centers, compatible with the surrounding area. Employment Land The Project has been designed to maintain the level of Office and Industrial (Employment) land. As detailed above, the Mixed Use Commercial (commercial/office) designation would be eliminated, and the Professional & Office Commercial designation would increase. Although the Mixed Use Commercial designation is being eliminated, the square footage available for Office development within the Project increases slightly (139,370 square feet as opposed to the 139,348 square feet in the 2014 adopted plan). The square footage in the original plan included 64,643 square feet of office in a mixed use configuration and 74,705 square feet on a separate office site, while the current proposal provides 8.3 acres of Professional and Office Commercial land. This allows development of the office site in a more marketable configuration, allowing a multi -story building and ample parking on the same site, which was not possible under the 2014 plan. Active Landfill Buffer The Project has been designed to comply with regulations prohibiting residential use within 1,000 feet of an active landfill. Although the northern edge of the Mixed Use Residential property falls within the 1,000 -foot Landfill Buffer, the Project's Tentative Map has been conditioned (Tentative Map Conditions of Approval - Condition No. 47 in Attachment 11), requiring proof from the Applicant that residential units are at least 1,000 feet from the active landfill area prior to any building permit being issued. Additionally, the Applicant is required to disclose in the Conditions, Covenants & Restrictions for each Homeowners Association Planning Commission November 7, 2016 Item 5 Page No. 4 within the Village that the property is located in the vicinity of the Otay Landfill (Tentative Map Conditions of Approval - Condition No. 6.c). Otay Ranch General Development Plan (GDP) Amendments to the Otay Ranch General Development Plan are necessary to implement the proposed revisions to the Village 3 land plan (See Attachment 4). Proposed amendments include: 1. Add the Office & Professional (0) land use designation to the GDP Land Use Designation Table (to support and be compatible with CVGP land use designations) 2. Convert approximately 8.3 acres of designated multi -family and Mixed Use Commercial (MUC) within the village core to Office and Professional 3. Convert the Mixed Use Commercial (MUC) site to Mixed Use (MU) 4. Modify the boundaries of the MU, Low Medium Village (LMV) and Medium (M) residential boundaries, correlating with the new neighborhood boundaries within Village 3 5. Adjust the distribution of residential dwelling units by category, while retaining the previously overall total dwelling units of 1,597 The proposed Project is designed in conformance with the Otay Ranch GDP. The organization of the land uses within the SPA area meets the GDP objectives of integration and compatibility of land uses within the villages and with adjacent communities. The SPA land use plan also supports GDP land use goals and objectives by providing a range of housing and employment opportunities. The plan continues to adhere to the GDP specific directives for Village 3 to include a business park and village core (composed of mixed use residential/commercial, office, school, neighborhood park, and residential land uses) and residential neighborhoods that offer a variety of housing styles and densities. SPA Plan Amendment The adopted SPA Plan, approved on December 2, 2014, established the vision for Village 3 and defined the land use character and mix of uses, design criteria, circulation system, and public infrastructure requirements for the project. The SPA is now being amended in order to reconfigure lots, realign streets and modify land uses in order to make the project more marketable. Planning Commission November 7, 2016 Item 5 Page No. 5 Proposed changes to -the Project's land uses are summarized in Table 2 below: Table 2. Net Change in Proieet's Land Uses Land Use 2014 SPA 2016 SPA Net Change Designation Acres SF Units Acres SF Units Acres SF Units RESID:IINTTAL Single Family 1'002 1'002 Residential DUs 0 Multi -Family 595 595 0 Residential DUs Total Residential 1,597 1,597 0 DUs lTUN RIDl�1TLAi[: ....._ ,=. :........ W... -..�.._.... ...;`- _... Industrial 28.6 29.3 0.7 Office 5.2 74,705 8.3 139,370 3.1 64,665 Mixed Use - Retail 8.2 20,000 9.1 20,000 0.9 Mixed Use - 0 Office included 64,643 0 (64,643) Community 4.2 G 2.8 Purpose Facility 10,000 (1.4) 10,000 Park 25.7 259 0.2 School 8.3 8.3 1 0 The proposed changes are described below - 1. Revise the single family lotting pattern to increase the variety of lot sizes and products: A wide variety of residential product types is proposed within Village 3 including traditional single family detached homes on lots ranging in size from 2,600 square feet to 5,000 square feet. In addition, single family detached homes are planned on lots served, by alleys and courtyard driveways. 2. Provide a north -south meandering paseo through the single family neighborhoods, providing a pedestrian connection to the elementary school, neighborhood park and village core. The proposed paseo builds on the Village 3 land use plan that established a pedestrian network featuring the Chula Vista Regional Trail, segments of the Chula Vista Greenbelt Trail and internal network including Village Pathway connections, enhanced Promenade Trails, and the Village Trail. This extensive pedestrian network provides convenient walking routes to and through the village core and provides connections to the City's regional trail network. 3. Reconfigure the Neighborhood Park: In support of the community focus on wellness and outdoor activities to enhance the quality of life for future residents, a reconfiguration of the Neighborhood Park is proposed. The Village Core contains village -serving commercial/retail uses, residential uses, office uses, a school site and a Neighborhood Planning Commission November 7, 2016 Item 5 Page No. 6 Park, creating a synergy of land uses and an environment where residents may live, work and recreate. 4. Relocate Community Purpose Facility (CPF) site adjacent to the Neighborhood Park: With the proposed relocation, two of the project's three CPF sites will be located within the Village Core, improving access for the residents that are served. 5. Modify central entry street, Avenida Escaya: Enhancements to the primary entrance to the project, including a grand landscaped median ("Village Green"), will create a sense of arrival and enhance the viability of the retail and commercial spaces fronting the street. 6. Provide an additional 3.2 acre Office (0) parcel adjacent to the existing Office parcel: In order to expand the size and marketability of the employment opportunities within Village 3, an additional 3.2 acres of Office use are proposed. Professional & Office uses are described in the Village 3 PC District Regulations and may include high teclmology, bio -technical, bio -medical and public and semi-public uses. Uses described above are consistent with the proposed CVPG land use designations. 7. Miscellaneous: o Unallocated Units - The total number of authorized units (1,597) within Village 3 North includes 327 authorized, but unallocated DUs (189 single family and 138 multi -family). These units may be allocated to parcels within Village 3, including, but not limited to, the Mixed Use parcels and any school site or portion of any school site not utilized for school purposes. Alternatively, these units may be transferred to other villages per the density transfer provisions of the SPA Plan. o Community Purpose Facility — The total CPF requirement for the project is four (4) acres of land (typically an Irrevocable Offer of Dedication (IOD) would be offered for this land with the Final Map). Pursuant to CVMC 19.48.025(B)(3): an alternative compliance mechanism may be approved. Applicant has proposed an alternate method of compliance with the CPF requirements for Village 3, whereby the dedicated acreage is reduced in exchange for construction of a CPF building. The Development Services Director has determined that the proposal meets the criteria for equivalency. A draft agreement is attached as Exhibit 8 to this report. o Parking — In response to the potential parking availability conflicts within higher density neighborhoods with homes offering 5+ bedrooms, Planned Community District Regulations have been modified for the RM -2 zone (18+ units/acre), adding a requirement for an additional 0.5 parking space (onsite) for each bedroom over four (4); Applicant prepared a Village wide parking exhibit (Attachment 7) o Private Open Space — California Rooms, which provide a transition from indoor to outdoor environments and may include features to enhance comfort and encourage entertaining (such as fireplaces, lighting and fans), may count toward Private Open Space requirement, subject to Development Services Director review/approval o Side yard Setbacks for Single Family units — The minimum side yard setback is 3.25 feet (2014 SPA) but in an .effort to address practical aspects (trash, yard waste and recycling container access/storage), language has been added to require a mini -mum of 4 feet of usable side yard space on at least one side of the home, and to require a minimum distance between detached residences of 7.25 feet Planning Commission November 7, 2016 Item 5 Page No. 7 o Industrial Access - The Project includes a minor revision to Industrial parcel access. The 2014 SPA and TM included two cul-de-sacs providing access from Heritage Road to the Industrial parcel. The Proposed project eliminates the cul-de- sacs and provides driveway access at the same two locations. As a result, the gross Industrial acreage increased by 0.7 acres and the internal circulation acreage was increased accordingly. However, there are no new impacts associated with this change. Planned Community District Regulations Modifications to the PC District Regulations for Village 3 are proposed in order to create a viable mixed use village core that will create a strong sense of place for residents of Village 3 and surrounding communities and meet market demand for a wider variety of single family lot sizes, multi -family products and commercial and office uses. Proposed modifications include: 1. Rezoning a Residential Multi -Family parcel to Office 2. Rezoning the Commercial/Mixed Use to Mixed Use/Residential 3. Rezoning the School Site to allow for a greater variation in residential density (in the event a school is not built on the site) 4. Modifying the zoning district boundaries to address plan and lotting changes within single family neighborhoods Village Design Plan The most significant change to the Village Design Plan is the Urban Theme and Character. The historical agrarian use of the land within Otay Ranch is the inspiration for the theme. Thematic architecture includes Transitional Spanish, Farmhouse and Ranch styles, interpreted in a contemporary way. Simple forms with an earth -toned palette comprised of colored stucco, stone, clay tile and wood accents compliment the architectural theme. The Village Core, with its mix of land uses, will allow for variety but maintains a strong basis in Farmhouse and Ranch architecture. Business Park Guidelines The Business Park Guidelines have been amended to require a Business Park Master Site Plan, subject to Design Review, concurrent with the first Design Review Proposal within the business park. Public Facilities Financing Plan PFFP Although the number of residential units has not changed since the 2014 PFFP was approved, the lot sizes, streets, and land use boundaries have been modified, so a Supplemental PFFP and Updated Fiscal Impact Analysis were prepared (Attachment 5). The Supplemental Public Facility Finance Plan (Supplemental PFFP) addressed changes to the public facility needs associated with the Village 3 SPA Plan Amendment. The 2014 PFFP was prepared consistent with the requirements of the Chula Vista Growth Management Project and Chapter 9, Growth Management of the Otay Ranch General Development Plan (GDP). The preparation of the Supplemental PFFP is required in conjunction with the preparation of the SPA Plan Amendment for the Project to ensure Planning Commission November 7, 2016 Item _5_ Page No. 8 that the phased development of the Project is consistent with the overall goals and policies of the CVGP, the City's Growth Management Program, and the Otay Ranch GDP, which was originally adopted by the Chula Vista City Council on October 28, 1993 and may be amended from time to time to ensure that the development of the Project will not adversely impact the City's Quality of Life Threshold Standards. This Supplemental PFFP meets the Otay Ranch GDP policy objectives. The Supplemental PFFP is based on the phasing and Project information presented in the proposed 2016 CVGP, GDP, and Village 3 SPA Amendments. The Applicant prepared technical analyses to supplement the technical reports associated with the original Project approvals and 2014 PFFP, to determine whether the Project's proposed amendments resulted in any changes to financing, constructing or maintaining public facilities within Village 3. The 2016 technical analyses demonstrate that none of the proposed changes to the Project result in changes to Mitigation Measures, Conditions of Approval or Thresholds established in the 2014 PFFP. The Village 3 Fiscal Impact Analysis was also updated and shows a revised cumulative deficit per unit of approximately $85 (compared to $120 per unit in 2014). This negative impact will be offset through the collection of a fiscal impact deficit fee of $85 with issuance of each residential building permit. Air Quality Improvement Plan Minor changes have been made to the exhibits to the Air Quality Improvement Plan to reflect the changes in the Village 3 land use plan. None of the proposed changes to the Project result in changes to Mitigation Measures, Conditions of Approval or Thresholds established in the 2014 PFFP. Fire Protection Plan Minor changes have been made to the exhibits to the Fire Protection Plan to reflect the changes in the Village 3 land use plan. None of the proposed changes to the Fire Protection Plan result in changes to Mitigation Measures, Conditions of Approval or Thresholds established in the 2014 PFFP. Preserve Edge Plan Changes are proposed to the Preserve Edge, including the minor reconfiguration of lots and land uses along the Preserve Edge. None of the proposed changes to the Preserve Edge result in changes to Mitigation Measures, Conditions of Approval or Thresholds established in the 2014 PFFP. Water Conservation Plan Minor changes have been made to the Water Conservation Plan to reflect the changes in the Village 3 land use plan. None of the proposed changes to the Water Conservation Plan result in changes to Mitigation Measures, Conditions of Approval or Thresholds established in the 2014 PFFP. Energy Conservation Plan Minor changes have been made to the exhibits to the Energy Conservation Plan to reflect the changes in the Village 3 land use plan. None of the proposed changes to the Energy Planning Commission November 7, 2016 Item 5_ Page No. 9 Conservation Plan result in changes to Mitigation Measures, Conditions of Approval or Thresholds established in the 2014 PFFP. Affordable Housine Plan Minor amendments proposed to the Affordable Housing Plan, allowing "up to" 80 moderate units and "up to" 80 low income units to be built on site. Potential affordable housing locations are limited to the Mixed Use (MU -2) site and the School (S-1) site. The School site would only be developed with residential in the event the school is not built in that location. A,gricultural Plan No changes are proposed to the Agricultural Plan. EIR Addendum The City's Director of Development Services has reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and determined that the Project is substantially covered in the previously adopted Final Environmental Impact Report for the Otay Ranch University Villages Project - (FEIR 13-01) (SCH 92013071077), that only minor technical changes or additions to this document are necessary, and that none of the conditions described in Section 15162 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, the Director of Development Services has caused the preparation of an Addendum to FEIR 13-01 (PERI 6-0001) for consideration. Tentative Map The Tentative Map reflects the Project's land use plan, as described above. DECISION -MAKER CONFLICTS No Property within 500 feet: Staff has reviewed the property holdings of the Planning Commission and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property related financial conflict of interest under California Code of Regulations Title 2, Section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov't Code 87100, et. seq.). Staff is not independently aware, nor has staff been informed by any Planning Commission member, of any other fact that may constitute a basis for a decision -maker conflict of interest in this matter. CONCLUSION Within Village 3, the proposed integrated land uses, development intensities and grading program directly implement the provisions of the City's General Plan and the Otay Ranch General Development Plan that foster Smart Growth. The proposed project provides all of the public facilities required by the Otay Ranch GDP. The additional higher -density mixed use residential located proximate to the park and ancillary retail commercial further implement pedestrian - oriented policies and is in conformance with the goals, objectives and policies of the General Plan and the Otay Ranch General Development Plan. Planning Commission November 7, 2016 Item _5_ Page No. 10 CURRENT YEAR FISCAL: All application fees and processing costs are borne by the Applicant, resulting in no net impact to the General Fund or the Development Services Fund. ONGOING FISCAL: The proposed project results in no net increase in residential units within Village 3. The Updated Fiscal Impact Analysis (Updated FIA) for Village 3 reflects the construction of 1,270 of the total 1,597 authorized residential units (see previous discussion of Unallocated Units) and minor adjustments to non-residential uses as previously discussed. The Updated FIA estimates that by Year 4 of Project buildout, the fiscal impact to the City would be net positive (approximately $145,000), with increasingly positive impacts through buildout. At buildout (Year 17), the Project is anticipated to generate a positive -net fiscal impact of approximately $320,000 annually. This reflects a decreaseof nearly $80,000 from the approved project, which was anticipated to generate annual ongoing positive impacts of approximately $400,000. Fiscal Impact Deficit Fee As established with the approved project, the fiscal impact has been aggregated for Village 3, Village 8 East and Village 10. A fiscal impact deficit per unit has been calculated based on a comprehensive schedule for the three villages, summing the years with a negative fiscal impact and dividing by the sum of the total residential units in the subject villages to determine an appropriate fiscal impact deficit fee. The negative fiscal impacts projected are primarily attributable to the other villages included in the analysis (Village 8 East and Village 10). A fiscal impact deficit mitigation amount of $85 per unit is indicated in the current analysis, which will be collected prior to building permit issuance (see Attachment 11, Draft City Council TM Resolution, Tentative Map Condition of Approval No. 13). Attachments 1. Locator Map 2. Addendum to Environmental Impact Report EIR 13-01 3. Chula Vista General Plan Amendment Justification Report 4. Otay Ranch General Development Plan Amendment Report 5. Village 3 SPA Plan Amendment, including Supplemental PFFP/Updated FIA 6. Village 3 Tentative Map 7. Parking Exhibit 8. Draft CPF Agreement 9. Planning Commission Resolution PER16-0001; MPA16-0015; MPA16-0016; MPA16-0008; PCS 16-0002 10. Draft City Council SPA Plan Resolution 11, Draft City Council TM Resolution 12, Draft City Council Environmental Addendum, GPA and GDP Resolution 13. Draft City Council PC District Regulations Ordinance Prepared by: Janice Kluth, AICP, Project Manager