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HomeMy WebLinkAboutStaff Report 2306-16652.Prescreening for proposed rezoning of 3265 El Camino Real to Planned Home Zone (PHZ)   City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Planning and Development Services Meeting Date: September 11, 2023 Report #:2306-1665 TITLE Prescreening for proposed rezoning of 3265 El Camino Real to Planned Home Zone (PHZ) RECOMMENDATION Staff recommends that Council conduct a prescreening and provide comments regarding the consideration of a conceptual proposal to rezone the subject parcel from CS to planned community (PC) zoning, also referred to as planned home zoning. No formal Council action may be taken during a preliminary review, and comments provided during a prescreening are not binding on the City or the applicant. EXECUTIVE SUMMARY The applicant proposes a 44-unit affordable housing development on a vacant lot at 3265 El Camino Real and seeks exceptions to the Zoning Code through the Planned Home Zoning (PHZ) process. Council’s feedback is requested, particularly on the project’s deviations from the Zoning Code development standards for the Commercial Service (CS) zoning district. In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including re-zonings, prior to submittal of a formal application. Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. BACKGROUND The subject site is vacant and was previously the pool area for the hotel at the adjacent 3255 El Camino Real property. In 2018, a planning entitlement was approved for a mixed-use building with three residential units and 275 sf of floor area for a commercial mixed-use tenant. The prior entitlement has expired, and the proposal is no longer moving forward. The prior project approval ensured the protection of the existing Valley Oak, while the proposed project includes its removal. Project Description The proposed project includes 44 housing units, noted by the applicant as intended to be rented to teachers as workforce housing. All PHZ projects must have a public benefit, including a minimum amount of affordable housing units. Typically, this includes at least 20% of the housing units as deed restricted for lower-income households. This proposal is described in Attachment D, Applicant’s Project Description, as being “100% affordable to teachers”, with 20% of the units dedicated to “low income” and 80% of the units dedicated to “moderate income”. Generally speaking, a Palo Alto teacher’s 2023 salary varies from $76,488 to $154,3361. For the purposes of affordable housing, the California Department of Housing and Community Development (HCD) has calculated a “low income” in Santa Clara County to be $96,000 for a one-person household, to $137,100 for a family of four2. Surrounding Uses This site is located between a motel to the western side and a restaurant to the east. On the northern side, the property backs up to a parking lot, a two-story office building, and a single- family house. The site is about one block from the 200 Portage Avenue and is located within the boundaries of the in-progress North Ventura Coordinated Area Plan. ANALYSIS The purpose of the prescreening is to receive early feedback that may inform the submittal of a formal application. Staff will prepare a thoughough analysis of Zoning and Comprehensive Plan compliance if an application is filed. A review of the conceptual plans highlights key policy considerations associated with the project request. Comprehensive Plan Compliance This property is identified as having a land use designation of CS, which is defined as: Facilities providing citywide and regional services and relying on customers arriving by car. These uses do not necessarily benefit from being in high-volume pedestrian areas such as shopping centers or Downtown. Typical uses include auto services and dealerships, motels, lumberyards, appliance stores, and restaurants, including fast service types. In almost all cases, these uses require good automobile and service access so that customers can safely load and unload without impeding traffic. In some locations, residential and mixed-use projects may be appropriate in this land use category. Examples of Service Commercial areas include San Antonio Road, El Camino Real and Embarcadero Road northeast of the Bayshore Freeway. Non-residential FARs will range up to 0.4. Consistent with the Comprehensive Plan’s encouragement of 1 Palo Alto Unified School District Salary Schedule, https://www.pausd.org/careers/salary-schedules 2 HCD 2023 State Income Limits, https://www.hcd.ca.gov/sites/default/files/docs/grants-and-funding/income- limits-2023.pdf housing near transit centers, higher density multi-family housing may be allowed in specific locations. This project’s location on El Camino allows higher density multi-family in compliance with the Comprehensive Plan. This address is not currently listed as a Housing Inventory Site in the Housing Element. Zoning Compliance Attachment B identifies where the proposed project deviates from the typical CS Zoning Development Standards, and also compares it to the AH Development Standards for projects using the Affordable Housing Incentive Program. The primary development standards proposed to be different are the project height and floor area ratio (FAR). The proposed height is approximately 8.5 ft taller than what is typically allowed, and the proposed FAR is 3.5:1 when the CS zone allows 0.6:1 and the AH standards allow 2.0:1. Additionally, the proposed roof deck includes more than 60% of the useable open space, and most units do not have any private open space. Design Standards A formal application would go through a more detailed review of the project’s compliance with the Objective Design Standards (PAMC 18.24) or the City’s Context Based Design Standards. At a high level, the project does not comply with the following standards: •Ground-floor residential uses shall have a minimum of 60% landscaped area in the required setback area. •A six-foot step-back is required for the upper floors (3+) on the side adjacent to single story development •The portion of the building that is more than 20 feet taller than the average height of the adjacent buildings is subject to a daylight plane measured 45 degrees at 25 feet •Private open spaces are required to have a minimum dimension of 6 feet to count towards open space requirements. As anticipated with the PHZ process, the applicant would likely seek to deviate from these and potentially other objective standards in order to meet the affordable housing obligation and achieve a higher density housing project. Draft NVCAP Compliance The Draft North Ventura Coordinated Area Plan (NVCAP, May 2023) designates this area for high-density residential use but requires ground-floor retail area. This project does not propose ground-floor retail and no existing retail is present on the site today. The Draft NVCAP would require a five-foot front setback, and this project proposes a four-foot minimum setback, that is at least five feet at some points along the façade. The overall sidewalk width would be 12 feet and would meet a long-standing provision for development along El Camino Real. The Draft NVCAP would allow a height of 55 feet for this site; the proposed concept plan anticipates a height of approximately 59 feet. Affordability, Compliance with PHZ On February 3, 2020, Council unanimously endorsed using Planned Home Zoning (PHZ) for housing and mixed-use housing projects to help spur housing production. In exchange for deviation from certain standards as allowed under the rezoning, if approved by Council, the project must include at least 20% of the housing units as deed restricted for lower-income households. Moreover, the number of housing units must offset the number of net new commercial jobs that are generated by the project. As a part of this, several options to meet 20% affordability were established. Using this weighted system, as shown below, the project is proposing an equivalency of 72% affordable units, exceeding the 20% minimum requirement. Since no retail is proposed, this project would inherently create more housing than jobs. Table 1: Affordability Matrix Income Level Area Median Income Weighted Value % of Actual Units Weighted % Very-low Income 31%-50%1.9 Low Income 51%-80%1.2 20%24 Below Market Rate Units Moderate Income 81%-120%.6 80%48 Workforce Housing Above Moderate Income 121%-140%.3 Total 100%72% Parking and Circulation The applicant proposes 22 parking spaces, or 0.5 spaces per residential unit, in stackers that would be independently accessible. Normally, one (1) space per unit is required for studio and one-bedroom units, and a Transportation Demand Management (TDM) plan can be used for an up to 20% reduction in required spaces. For 100% Affordable projects using the Affordable Housing Incentive Program (PAMC 18.32), only .75 parking spaces per unit is required. The project is located on El Camino Real, a high-quality bus corridor. California State Law AB 20973 prevents cities from requiring parking for projects within a half-mile of a high-quality transit corridor or train station. However, the site is located approximately one mile from the 3 Government Code Section (§) 65863.2 implemented Assembly Bill 2097 signed into law in September 2022 California Avenue CalTrain station, so this State law is not applicable. Forty-four (44) bike parking spaces are proposed on the ground floor in a shared storage room, in addition to ten on-site shared electric scooters. The proposed entry into the garage is only 14 feet wide, with a narrower garage door entry (at approximately 10-12 feet). PAMC 18.54.070 Table 5 requires a 20-foot-wide driveway for two- way traffic. The Code allows multi-family buildings with less than 10 units to reduce this width to 16 feet. If a formal application is submitted, staff will evaluate whether a wider driveway is needed to prevent back up queuing on El Camino Real or other safety considerations. Roof Deck The proposed project includes a rooftop garden that accommodates most of the required open space. The proposed roof deck is 1,750 sf, which provides approximately 40 sf of open space per unit. Typically, 150 sf of open space per unit is required for standard projects, and 50 sf of open space per unit is required for projects using the Affordable Housing Incentive Program Per the Zoning Code, rooftop gardens are generally not allowed above the standard height limit but are allowed on properties on El Camino Real that are more than 150 feet away from any residentially zoned properties, which includes this property. It should be noted that Lambert Street includes at least one single-family home, in residential use, located in the CS zoning district. However, since the useable deck area is pushed to the El Camino side of the building, it is still more than 150 ft away from this residence. Existing Tree The site contains a Valley Oak, which measures approximately 30 inches in diameter and is a Protected species. The previously approved 3-unit project was designed to preserve this tree. Council may consider the net benefit of 44 housing units compared to maintaining a protected tree. If removed, this tree will be subject to on-site replacement and/or in lieu fees per Urban Forestry requirements. Waste Pick-Up The proposed plans show a refuse room on the ground floor in the parking garage. The bins would need to be brought to the curb, and there appears to be adequate space to serve the bins curbside. This would be further evaluated by the Zero Waste Division during formal review. FISCAL/RESOURCE IMPACT There are no resource impacts associated with this project. The prescreening and processing of a formal application, if filed, are services paid for by fees from the applicant. Additionally, impact fees are charged on the project to account for impacts the project has on public services and infrastructure. POLICY IMPLICATIONS Overall, the applicant asks for several exceptions to the base district zoning standards in exchange for proposing a housing project that will meet a minimum of 20% affordable units required by the Council for PHZ projects. This project is seeking a PHZ approval at a time when other projects with lesser affordability have asserted that the ”builder’s remedy,” under the Housing Accountability Act obviates the need for such rezoning. While there are unresolved legal questions surrouding the applicability of the “builder‘s remedy“ following the City‘s adoption of a Housing Element on May 8, 2023, the applicant‘s decision to utilize the City‘s PHZ process is notable. NEXT STEPS Following the prescreening review, the applicant will have an opportunity to file a formal application. If filed, the PHZ process would require a hearing before the Planning and Transportation Commission, followed by a hearing(s) with the Architetural Review Board, retuning to the PTC and then back to Council to consider the legislative change to rezone the property and adopt a parcel specific ordinance. ENVIRONMENTAL REVIEW This prescreening is a preliminary review process in which Councilmembers may provide comment, but no formal action will be taken. Therefore, no review under the California Environmental Quality Act (CEQA) is required at this time. A formal review under CEQA would be initiated with the formal filing of a rezoning application. This property is in the COE Plume Area. An Initial Study and Mitigated Negative Declaration were prepared for the prior development, but this project scope is substantially different and will require new environmental review. ATTACHMENTS Attachment A: Location Map Attachment B: Zoning Comparison Table Attachment C: Applicant's Project Description Letter Attachment D: Project Plans APPROVED BY: Jonathan Lait, Planning and Development Services Director Legend Assessment Parcel Palo Alto 0 Assessment Parcel Palo Alto Assessment Parcel Outside Palo Alto abo Road Centerline Small Text (TC) Curb Face (RF) Pavement Edge (RF) abc Address Label (AP) Current Features The C i t y of Palo Alto This mapis a product of the City of Palo Alto GIS Attachment A Vicinity Map 3265 El Camino Real sans,. ansce-aataarri- AdninflAREKView Tr.) ,let s no a ATTACHMENT B ZONING COMPARISON TABLE 3265 El Camino Real, 23PLN-00105 The PHZ Special Requirements (18.38.150) do not apply because the site is not within 150 ft of residential zoning district or use Regulation Required CS Development Standard AH Development Standard Proposed Minimum Site Area, width and depth No minimum size or dimensions No minimum size or dimensions 7,492 sf Minimum Front Yard 0-10 ft to create an 8-12 ft effective sidewalk width (8) 0-10 ft to create an 8-12 ft effective sidewalk width (8) 4 ft, 12 ft effective sidewalk Rear Yard 10 ft 10 ft 0 ft Interior Side Yard None None Varies, 0-5 ft Build-to-Lines 50% of frontage built to setback (1) 50% of frontage built to setback (1) Complies Max. Site Coverage 50% (3,746 sf)None 87% (6,525 sf) Max. Building Height 50 feet Add’l 15 ft for equipment 50 feet Add’l 15 ft for equipment 58 ft 6 in. to parapet 69 ft to elevator overrun Max. Floor Area Ratio (FAR) 0.6:1 (4,495 sf) for 100% residential sites on El Camino Real 2.0 for 100% affordable housing 3.5:1 (26,365 sf ) Residential Density (4)No max on El Camino Real No max 256 units per acre 44 total Min. Ground Floor Commercial FAR (10) Does not apply for sites on El Camino Real None required None proposed Daylight Plane for lot lines abutting one or more residential zone districts other than an RM-40 or PC Zone None, does not abut residential None, does not abut residential None, does not abut residential Minimum Landscape/Open Space Coverage 30% (2,247.6 sf) (2) Max 1,348.6 sf rooftop garden 20% (1498.4 sf), may include rooftop garden 35.6% (2,674 sf) 1,750 sf rooftop garden Minimum Useable Open Space (Private and/or Common) 150 sf per unit (2)50 sf per unit 40 sf per unit (1) Twenty-five-foot driveway access permitted regardless of frontage. (2) Required usable open space: (1) may be any combination of private and common open spaces; (2) does not need to be located on the ground (but rooftop gardens are not included as open space except as provided below); (3) minimum private open space dimension six feet; and (4) minimum common open space dimension twelve feet. For CN and CS sites on El Camino Real and CC(2) sites that do not abut a single- or two-family residential use or zoning district, rooftop gardens may qualify as usable open space and may count as up to 60% of the required usable open space for the residential component of a project. In order to qualify as usable open space, the rooftop garden shall meet the requirements set forth in Section 18.40.230. (4) For CN sites on El Camino Real, height may increase to a maximum of 40 feet and the FAR may increase to a maximum of 1.0:1 (0.5:1 for nonresidential, 0.5:1 for residential). (8) A 12-foot sidewalk width is required along El Camino Real frontage. (10) In the CC(2) zone and on CN and CS zoned sites on El Camino Real, there shall be no minimum mixed use ground floor commercial FAR for a residential project, except to the extent that the retail preservation requirements of Section 18.40.180 or the retail shopping (R) combining district (Chapter 18.30(A)) applies. Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) for Multiple Family Use Type Required Standard Required AH Proposed Vehicle Parking 1 per studio or 1- bedroom unit (44 spaces) .75 per unit of any size (33 spaces) 2 ADA spaces 20 stacker spaces 24 spaces total Bicycle Parking 1 per unit (44 spaces), 100% - LT 1 per unit (44 spaces), 100% - LT 44 LT Loading Space None for less than 50 units None for less than 50 units None provided T R A C H T E N B E R G A R C H I T E C T S 2 4 2 1 F o u r t h S t r e e t B e r k e l e y , C A 9 4 7 1 0 p h o n e : 5 1 0 . 6 4 9 . 1 4 1 4 w w w . T r a c h t e n b e r g A r c h . c o m April 20, 2023 Planning Division City of Palo Alto 250 Hamilton Ave, 5th Floor Palo Alto, CA 94301 Project Description for 3265 El Camino Real This 100% affordable new multi-family housing project consists of a 5-story development with 44 dwelling units and ground level lobby and parking. First priority for all vacancies will be given to the teacher members of the Palo Alto Educator Association (PAEA) through an existing partnership and agreement. This project would provide a quality infill development on an empty and underutilized site, which is located on a major arterial street, El Camino Real, with close proximity to restaurants, shops, and transit located along both California Avenue and El Camino Real. It would also contribute much needed new housing to the city’s stock. The site is in a transitional zone between residential neighborhoods and commercial development - importantly, more than 500' distance to the nearest residentially zoned parcel. The project scale and housing use are appropriate for the site in this transitional zone, and the design of the project establishes an urban infill development appropriate for El Camino Real frontage. The contemporary residential design includes many windows with classic materials and palette. This application is submitted under the City's Planned Home Zoning (PHZ) process that motivates developers to offer community benefits in the form of minimum 20% affordable housing in exchange for exceptional entitlements granted by the City that would otherwise make the project economically nonviable. The project proposes to maximize community benefit at 100% affordability targeted for our critically important teacher community. We welcome feedback on the project's massing, land use of the site, and any other aspects of the project. If you have any questions or comments, please feel free to contact me at (510) 649-1414 x124. Sincerely, Isaiah Stackhouse, Principal TRACHTENBERG ARCHITECTS If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner-on-Duty at 650-617-3117 or email planner@cityofpaloalto.org Project Plans In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council members for their review. The same plans are available to the public, at all hours of the day, via the following online resources. Directions to review Project plans and environmental documents online: 1. Go to: bit.ly/PApendingprojects 2. Scroll down to find “3265 El Camino” and click the address link 3. On this project-specific webpage you will find a link to the project plans and other important information Direct Link to Project Webpage: https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current-Planning/Projects/3265- El-Camino