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HomeMy WebLinkAboutStaff Report 07.24.19 Item: __2____ Meeting Date:07/24/19 ITEM TITLE: Public Hearing: DR18-0019 consideration of a 46-unit apartment complex with an affordable housing component, and resident amenities to include a community room on the first floor, and recreation areas for active and passive use on approximately 1.13 acres west of Third Avenue and south of K Street. Applicant: Floit Properties. Resolution of the City of Chula Vista Planning Commission approving Design Review Permit DR18-0019 to construct one four-story building totaling 41,770 square-feet, consisting of 46 apartment units including 5% affordable units with associated parking and recreational facilities on approximately 1.13 acres located south of K Street, between Third Avenue and Fourth Avenue. SUBMITTED BY: Oscar Romero, Assistant Planner REVIEWED BY: Kelly Broughton, Director of Development Services INTRODUCTION On October 24, 2018, the Applicant submitted a Design Review application for approval of the above-referenced apartment project. The proposed project is for the construction of one 4-story residential building with a total of 46 apartment units and 69 parking spaces on a consolidated 1.13-acre site (the “Project”). The Project also includes the construction of landscaped areas, recreational areas to include an indoor community room and outdoor recreation consisting of both passive and active use. Access to the project site will be from K Street (see Locator Map, Attachment 1). The Applicant has elected to utilize the provisions allowed by California Government Code Section 65915 “State Density Bonus Law” and as codified in Chula Vista Municipal Code (CVMC) Chapter 19.90-Affordable Housing Incentives related to parking standards. As required by State Density Bonus Law/CVMC Chapter 19.90, five percent of the units (three units) will be rent restricted for occupancy by very low-income households. BACKGROUND The 1.13 acre site currently consists of two legal parcels of land used by the Marquez Body Shop from 1962 to 2014. The site is within the 1,700 acres covered by the Urban Core Specific Plan (UCSP) adopted in April 2007 and last amended April 2015. The proposed Project is a permitted Planning Commission 07-24-2019 DR18-0019 Item No: 2 Page No. 2 use by the Urban Core Specific Plan (UCSP) and may be approved through the processing of a Design Review Permit subject to review and approval by the Planning Commission. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed Project for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed Project was adequately covered in the previously adopted Urban Core Specific Plan Final Environmental Impact Report and Mitigation Monitoring and Reporting Program FEIR 06-01, adopted by the Chula Vista City Council in May 2007. A secondary study was completed as required by the UCSP EIR, and the determination has been made that there are no project impacts beyond those previously identified in the UCSP EIR. RECOMMENDATION: That the Planning Commission adopt Resolution DR18-0019 approving the Project, based on the findings and subject to the conditions contained therein. DISCUSSION: The City has received a Design Review application for the construction of a total of 46 apartment units, with three units to be rent restricted for occupancy by very low-income households in accordance with State Density Bonus Law/CVMC, and 69 parking spaces on a 1.13-acre site. The following discretionary action is required for the proposed Project: Design Review with State Density Bonus  Comprehensive evaluation of the site plan, architectural and landscape design components of the Project utilizing State Density Bonus Law/CVMC.  Use of reduced parking standards pursuant to CVMC 19.90.080 (H) and Government Code § 65915(p). Project Description The 46-unit apartment development embodies a Southern California courtyard housing design and is comprised of one 4-story building, with two courtyards linked at the ground level, and one elevator. The building’s one elevator is located less than 154-feet from the furthest unit. The proposed building’s maximum height is 49-feet and 7-inches, which is less than the maximum height allowance of 60-feet in the UCSP. Total building area for the proposed project is approximately 41,770 square- feet on approximately 1.13 acres. The development will provide 19 one-bedroom units, 19 two-bedroom units and 8 three-bedroom units. A total of 69 uncovered parking spaces will be provided at the ground level. The Project also includes recreation areas including a community room, and recreational areas for both passive and active uses. Planning Commission 07-24-2019 DR18-0019 Item No: 2 Page No. 3 Exterior finishes on the building will consist of medium sand, tinted glass railing, vertical metal panel siding, dark bronze metal panel, corrugated metal siding and steel window shrouds. All exterior lighting will comply with the City’s Municipal Code and will be shielded and directed downward. The proposed Project includes landscaped areas, surface parking, and amenities including a BBQ area, indoor community room for residents, recreational courtyard with artificial turf for active use and a passive courtyard for leisure. The Applicant has requested and qualifies for State Density Bonus provisions under California Government Code Section 65915 and CVMC Chapter 19.90 that promote affordable housing through the use of density bonus, incentives or concessions, waivers or reductions to development standards, and/or reduced parking ratios. Pursuant to State Density Bonus Law and CVMC Chapter 19.90, the Applicant will provide three affordable rental units for very low income households and, therefore, is requesting use of the specified parking ratios. Three of the rental units (5% of the total 46 units) will be subject to rental and occupancy restrictions for very low-income households at 50% of the area median income (AMI) for a period of 55 years. The maximum annual income for a qualifying two person very low-income household is $42,800 ($3,567 per month) and $48,150 ($4,013 per month) for a three- person household. The anticipated restricted rental costs would range from $863 a month for a one-bedroom unit and $970 for a two-bedroom unit. Project Site Characteristics and surrounding uses: The Project is located within the UCSP area just west of Third Avenue and South of K Street. The proposed Project is located on 1.13 acres, comprising two separate, contiguous parcels: Assessor Parcel Numbers 573-450-04-00, 573-450-05-00 (Attachment 1, Locator Map). As shown on Attachment 1, the site is within an urban portion of the City and in an area generally surrounded by multifamily and commercial land uses. To the north is a rental facility for construction tools and machines, a gas station and multifamily development. To the west is another apartment complex, east are three contiguous parcels fronting Third Avenue with two restaurants and a bank parking lot. South of the project site is the bank and apartment complex. Single-family dwellings are located along K Street to the west within less than a ¼ of a mile. Land Use and Zoning The table below shows the current General Plan and zoning designations for the subject site and the surrounding sites: CURRENT USE GENERAL PLAN UCSP (ZONING) SITE Abandoned auto body Commercial Retail Third Avenue South (C-1) repair NORTH Construction yard, Gas Residential High (RH) and Commercial Office (CO), and Station, Multifamily Commercial Retail (CR) C-1 Third Avenue South EAST Jack in the Box Commercial Retail C-1 Third Avenue South Cotija’s Planning Commission 07-24-2019 DR18-0019 Item No: 2 Page No. 4 Wells Fargo SOUTH Wells Fargo Commercial Retail Third Avenue South (C-1) Multifamily WEST Multifamily Residential High Apartment Residential (R-3) Consistency with Development Standards The proposed residential development and the associated conceptual design plans have been evaluated in the context of the UCSP’s development regulations, standards, and design guidelines, CVMC, including the Government Code and Chula Vista Design Guidelines. The Project utilizes the UCSP Third Avenue South (C-1) Zone development standards for apartments. DEVELOPMENT STANDARD ZONING PROJECT PROPOSAL BUILDING HEIGHT 60 ft. Max. 49 feet and 7 inches max. FAR 1.0 0.85 (41,770 sq. ft – bldg. / 1.13 ac) BUILDING SETBACKS: STREET: 10 - 20 feet 10 Feet SIDE: 0 feet 5 Feet REAR: 0 Feet 117 Feet *PARKING REQUIRED: 73 spaces 69 spaces onsite * Parking is in accordance with the provisions of Government Code § 65915 (p)/CMVC 19.90.080 ANALYSIS: Staff has identified four key items for consideration: 1) the regulatory framework; 2) Design Review consistency; 3) reduced parking requested pursuant to the State Density Bonus Law/CVMC; and 4) the Project’s environmental considerations. 1. Regulatory Framework in Reviewing the Project The proposed Project requires adherence to the City of Chula Vista Municipal Code, UCSP, Design Guidelines and State Density Bonus Law. The City’s discretionary action on the Project must be based upon its reasonable determination of compliance or non-compliance with such written and objective standards and regulations. As stipulated in State Law, receipt of a density bonus and/or other incentives, concessions or waivers under State Density Bonus Law shall not constitute a basis for finding a project inconsistent with a particular plan, policy, ordinance, or standard. Project compliance is demonstrated in this analysis section. In addition, the entirety of the action must also be found to be consistent with the Housing Accountability Act. Although the Planning Commission retains discretion to act on the Project, that discretion must be consistent with the Housing Accountability Act (the “HAA” or “Act”) Planning Commission 07-24-2019 DR18-0019 Item No: 2 Page No. 5 found at California Government Code §65589.5. The HAA applies to all housing development projects, whether affordable, market rate, or mixed use. The HAA restricts a city’s ability to deny, reduce the density of, or make infeasible housing developments that are consistent with objective general plan, zoning, subdivision, and design review standards. The burden of proof is placed on the City to justify such actions based upon the following:  Written and specific findings that the project would have a “specific adverse impact” defined as “a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete” to public health and safety as supported by a preponderance of the evidence on the record; and  There is no feasible method to satisfactorily mitigate or avoid the adverse impact other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density. (Gov't Code § 65589.5(j)). 2. Design Review – Compliance with City standards The Project requires the approval of a Design Review Permit (DR) pursuant to CVMC Section 19.14.582. The purpose of the DR is to review grading, site design, and landscaping improvements to ensure consistency with the City of Chula Vista Design Manual and the UCSP. As indicated previously in this report, the City Council adopted the UCSP to implement the vision of Smart Growth to include the following:  Provide a mix of compatible land uses  Take advantage of compact building design  Create a range of housing opportunities design  Create a range of housing opportunities and choices  Create walkable neighborhoods  Strengthen and direct development towards existing communities  Provide a variety of transportation choices The adopted UCSP contains the required regulations and development standards to review and evaluate development projects for consistency with the vision and goal for the subject area. The proposed apartment Project was reviewed and evaluated based on the UCSP’s and the R-3 regulations, development standards, the Government Code and Chula Vista Design Guidelines. Land Use Compatibility Apartments and condominiums are an allowed use under the regulations of the UCSP Land Use Matrix for the C-1 designation. The Project would develop an underutilized and unimproved site and provide additional residential units in an area that is adjacent to commercial and apartment uses. The Project would contribute to provide rental multi-family housing with an affordable component to families that would support the existing commercial base within the area. The Planning Commission 07-24-2019 DR18-0019 Item No: 2 Page No. 6 proposed Project is also consistent with the UCSP, four-story building height, parking (69 spaces provided), and building setbacks. As shown in the table above, the Project meets all of the applicable regulations and, in cases such as parking, the Project is using the CVMC 19.90 Affordable Housing Incentives to reduce parking requirements by use of a waiver. Site Planning and Building Placement/Orientation The Project was analyzed based on the design guidelines established in the City’s Design Manual. Following is a set of design standards applicable to the proposed Project followed by statements indicating how the Project is consistent with those guidelines.  The arrangement of structures, parking and circulation areas, and open spaces should recognize the particular characteristics of the site and should relate to the surrounding built environment in pattern, function, scale, character and materials;  The scale of multiple family projects should be considered in the context of their surroundings. Large projects should be broken up into groups of smaller structures and taller structures should provide increased setbacks so as not to dominate and impose on surrounding uses and the character of the neighborhood.  To the extent possible, each of the dwelling units should be individually recognizable. This can be accomplished with the use of roof lines, setbacks, projections and balconies which help articulate individual dwelling units or collection of units, and by the pattern and rhythm of windows and doors. The building is designed around two courtyards that are linked at the ground level by a common indoor gathering space available to all the residents and their guests. Circulation through the complex is oriented to the courtyard space and every path home incorporates an overlook into the courtyards. Further, the circulation system is open at all its ends to foster natural cross ventilation and daylight. At the top level, balcony spaces extend above the roof line to create large airy and spacious rooms. The site design emphasizes connection to the city, especially for pedestrians. Cars are placed behind and to the west edge of the site where they are convenient to residents but safely away from pedestrian travel. The courtyard scheme relates well to immediate and nearby neighbors including Pine Vista Apartments and Casa la Paz Apartments. The overall building arrangement, parking, recreational and open space areas, and landscaping creates a balanced mix of bulk and ample spatial separation onsite that is complimentary with the surrounding commercial, multi-family apartments and single-family homes. The Project has been designed to integrate and blend with the context, character, and scale of the surrounding neighborhood. The Project will be a pedestrian friendly development intended to connect with the street, surrounding commercial, and the rest of the neighborhood. All interior- facing building elements are designed to support pedestrian traffic and provide the residents within the Project as well as the public with the connectivity between the site and the immediate Planning Commission 07-24-2019 DR18-0019 Item No: 2 Page No. 7 community. One of the important features that will connect the Project internally and externally is the courtyard located at the center of the site. Building Architecture  The architecture should consider the compatibility with surrounding character, including harmonious building style, form, size, color, material and roofline. In developed areas, the new project should meet or exceed the standards of quality which have been set by surrounding development.  Heights and setbacks within the same building should be varied, and wall planes should be staggered both horizontally and vertically in order to create pockets of light and shadow and provide visual relief from monotonous, uninterrupted expanses of wall.  Colors and materials should be complementary to the chosen architectural style and compatible with the character of surrounding development. Materials for multiple family projects should be durable and require low maintenance. They should be consistently applied and work harmoniously with adjacent materials. Piecemeal embellishments and frequent changes in materials should be avoided. Materials tend to appear substantial and integral when material changes occur at changes in planes.  Colors and materials should be consistent with the chosen architectural style and compatible with the character of surrounding development. Sensitive alteration of colors and materials can produce diversity and enhance architectural form. The architecture throughout the site is a modern adaptation of the familiar and regionally appropriate courtyard housing. Buildings are simple with bold articulation design such as metal accents, plaster, glass sidings and varied rooflines. The proposed courtyard architecture is scaled to be consistent with the UCSP and the surrounding commercial and residential buildings. The building’s fenestration allows those passing by to see welcoming large windows and balconies. In addition, the buildings will feature articulated walls, color variety, different finish textures and stepped facades to maintain proper scale with its surroundings. Private balconies and shared amenities onsite will provide many opportunities for passive and active recreation. The Project is consistent with the scale and style of the adjacent commercial and apartment properties. Building Height/Setbacks The UCSP establishes a maximum building height of 60-feet and the proposed Project will be 49- feet and 7-inches in height. Setback for the site under the C-1 Third Avenue South Zone requires a minimum setback from the street at 10-feet or a maximum of 20-feet with 50% frontage. The site is proposing a minimum front yard setback of 10-feet with a 61% street wall frontage along K Planning Commission 07-24-2019 DR18-0019 Item No: 2 Page No. 8 Street. There was no additional setbacks required as the site is not within a Neighborhood Transition area requiring additional setbacks when adjacent to an R-1 or R-2 Zone. Open Space The UCSP does not require usable open space in the C1 Zone, but the Applicant did provide recreation and leisure areas for residents as well as providing a landscape plan to cover 19% of the site exceeding the 10%-15% requirement. 3. State Density Bonus Law/CVMC Chapter 19.90 & Parking Regulations Affordable Housing Density Bonus/Incentives/Waivers Cities are required to provide an increase in allowable density to those qualifying projects (Cal. Gov. Code § 65915 (b)). In addition to these density increases, developers must also be afforded the opportunity to apply for other development incentives or concessions (Cal. Gov. Code § 65915(d)), the number of which is dependent on the amount of affordable units provided and their level of affordability, waivers or reduction of developments standards (Cal Govt Code § 65915(e)), and reduced parking ratios (Cal Govt Code § 65915(p)). To facilitate and materially assist the housing industry in providing adequate and affordable shelter for all economic segments of the community and to provide a balance of housing opportunities for very low income, low income and senior households, the City adopted CVMC Chapter 19.90 – Affordable Housing Incentives, consistent with State Density Bonus Law. Should an applicant agree to construct housing units to be restricted for occupancy by very-low and low-income households as set forth in CVMC 19.90.040, upon the request of the applicant, the City shall make incentives and waivers available, in accordance with CVMC 19.90.050, and parking ratios in accordance with CVMC 19.90.080 (H). Density Bonus By including five percent of the base units for very low-income households, the Project is entitled to a 20 percent housing density increase under the provisions of CVMC 19.90.040 (B) and Government Code § 65915(f)(2). However, the Applicant is not requesting a density bonus to achieve the affordability level for the three very low-income units. In accordance with Gov. Code Section 65915 (f) and CVMC Section 19.90.040 (E), the Applicant can request less than, including no density increase, and still receive all other incentives, concessions, waivers, and parking. Incentives By including five percent of the base units for very low-income households, the Project is entitled to one development incentive under the provisions of CVMC Chapter 19.90. Incentive Findings State Density Bonus Law requires local agencies to grant the incentive request unless one or more of the following findings can be made to deny any waiver of development standard based on substantial evidence: Planning Commission 07-24-2019 DR18-0019 Item No: 2 Page No. 9  The incentive does not result in identifiable and actual cost reductions to provide for affordable housing costs or for rents;  The incentive would have a specific adverse impact upon public health and safety as defined in Government Code § 65589.5, the physical environment, including environmentally sensitive lands, or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact; or,  The incentive would be contrary to state or federal law. If the findings above cannot be made, the incentive must be granted. Waivers/Reductions in Development Standards By including five percent of the base units for very low-income households, the Applicant may request waivers or reductions of development standards in accordance with CVMC 19.90.080 (F) and Government Code § 65915(e) in addition to any requested incentives or concessions as described above. Waiver Findings State Density Bonus Law requires local agencies to grant the wavier requests unless one or more of the following findings can be made to deny any waiver of development standard based on substantial evidence:  The waiver or reduction would have a specific adverse impact upon public health and safety as defined in Government Code § 65589.5, the physical environment, including environmentally sensitive lands, or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact; or,  The incentive would be contrary to state or federal law. If the findings above cannot be made, the waiver must be granted. The Applicant is requesting a waiver from the CVMC 19.90.080.H parking requirement with allowance for a reduction in parking from 73 spaces to 69 parking spaces for a total reduction of 4. The CVMC 19.90.080 H Parking Requirement allows for 73 parking spaces under Table F parking standards. The site is physically constrained and will not be able to meet the minimum requirement of 73 spaces, which will require a reduction in the 46-units proposed resulting in a reduced number of units developed. No evidence has been identified to demonstrate that the granting of the requested waiver would have an adverse impact to health, safety or physical environment that cannot be feasibly mitigated. Furthermore, the proposed waiver will not impact any historic property and would not be contrary to any state or federal law. Planning Commission 07-24-2019 DR18-0019 Item No: 2 Page No. 10 Regulatory Agreement To ensure compliance with CVMC Chapter 19.90 and State Density Bonus Law, as a condition of approval of the Project, the Applicant will be required to execute and record an Affordable Housing Regulatory Agreement and Deed of Trust securing the City’s interest prior to the issuance of a building permit. Such Agreement will set forth the terms and conditions for the required income and rent restrictions for three units reserved for very low-income households for a minimum compliance period of 55 years and shall be recorded as a covenant on the property. Such restrictions will bind all subsequent owners so that the commitment remains in force regardless of ownership. Compliance with these restrictions will be subject annually to regulatory audit and certification, with an annual monitoring fee to be paid to the City. 4. Environmental Review The Project was adequately covered in the previously adopted Urban Core Specific Plan Final Environmental Impact Report and Mitigation Monitoring and Reporting Program FEIR 06-01, adopted by the Chula Vista City Council in May 2007. No further environmental review is required. CONCLUSION The Project, as proposed, is consistent with the vision and requirements of the UCSP, CVMC, the Guidelines of the City’s Design Manual, and State Density Bonus Law. The requested waiver for reduced parking pursuant to State Density Bonus Law can be justified based upon the physical characteristics of the site which constrain the Applicant’s ability to develop a total of 46-units. By requiring 73 spaces, there will be a requirement to add four additional spaces which cannot be physically located on-site. Furthermore, in order for the Applicant to meet the minimum of 69 parking spaces they will need to reduce the number of units by two in order to comply with the parking requirement. For purposes of the HAA, no “specific, adverse impacts” to public health and safety have been determined that would necessitate the denial of the Project or a reduction in density to mitigate such impacts. The proposed Project will provide new investment and modern housing facilities and site improvements that will contribute to the revitalization and enhancement of the site and the neighborhood. It will provide new rental multi-family housing with an affordable component that will improve the housing mix, expand residential opportunities and contribute to business activity in this part of the City. The proposed Project is well planned, incorporating the principals of Smart Growth such as compact design, located near transit, and resource conservation. It is designed to respect and blend with the community character, local history, and climate. The Project’s pedestrian orientation and location near the 929 MTS route along Third Avenue and the 704 MTS route along Fourth Avenue will provide convenient access for residents to nearby public transportation. Based on the description and evaluation of the Project and the conclusions above, staff recommends that the Planning Commission approve the proposed Project subject to the conditions contained in the resolution. Planning Commission 07-24-2019 DR18-0019 Item No: 2 Page No. 11 DECISION-MAKER CONFLICTS Staff has reviewed the property holdings of the Planning Commission members and has found no property holdings within 1,000 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)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware and has not 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. FISCAL IMPACT The proposed Project is a private development. The application fees and processing costs are paid for by the Applicant. Attachments 1. Locator Map 2. Planning Commission Resolution DR18-0019 3. Disclosure Statement 4. Project Plans (via flash drives)