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HomeMy WebLinkAboutSR - ZCG-1268-12 - BATAVIA AND MAIN STREETAGENDA ITEM February 1.0, 2015 TO: Honorable Mayor and Members of the City Council THRU: John W. Sibley City Manager FROM: Rick Otto Interim Community pment Director ReviewedNeri d By: City Manager Finance Dire or To Be Presente y: Anna Pehoushek Cons Calendar _ City Mgr Rpts Council Reports _ Legal Affairs Boards /Cmtes X Public Hrgs Admin Reports Plan/Environ 1. SUBJECT Zone Change No. 1268 -12; rezoning of properties in the Katella Corridor 2010 General Plan Land Use Focus Area (between Batavia and Main Streets) to Urban Mixed Use (UMU) to establish consistency with the Urban Mixed Use General Plan land use designation in accordance with state law. 2. SUMMARY The City of Orange General Plan update was adopted in March 2010. As part of the update, properties located between Batavia Street and the western City limit in the Katella Corridor General Plan Land Use Focus Area (West Katella Corridor) were designated Urban Mixed Use (UMIX). Presently, the properties in this area are zoned Commercial Recreation (CR). State law and the City's General Plan Implementation Plan require consistency to be established between the General Plan land use designation and zoning classifications. The zoning classification that corresponds to the UMIX General Plan land use designation that is appropriate for this area is Urban Mixed Use (UMU). Zone Change No. 1268 -12 establishes General Plan and Zoning consistency for the affected properties. Due to past feedback from the City Council the action on this Zone Change has been separated into two geographic areas: 1) the portion of the Katella Corridor west of Main Street to the City limit; and 2) the portion of the Katella Corridor between Batavia and Main Streets. This report and associated Ordinance addresses the area between Batavia and Main Streets. There is a companion item on the Council Agenda that addresses the area between Main Street and the City limit. The City Council conducted a public hearing on this item on March 26, 2013 at which time the item was continued to May 28 to allow the Council to obtain additional information from property owners and staff. The item was continued again for 90 days. The item came before the City Council again on September 10, 2013, and was continued to October 22, 2013 at which time the ITEM 1 2/10/15 Council continued it to an unspecified date in order to allow staff additional time to consider options in response to public comments. The City Council meeting Minutes of March 26, May 28, and September 10, 2013 are provided in Attachment 5. The Minutes of October 22, 2013 are provided in Attachment 4. 3. RECOMMENDATION (1) Find that the proposed zoning changes are within the scope of the previously- approved 2010 General Plan, which was evaluated in certified Program EIR No. 1815 -09; and find that the Program EIR adequately describes the zoning changes for purposes of CEQA and no new environmental documents are required. (2) Either: Adopt Ordinance No. 13 -13 approving Zone Change 1268 -12 rezoning properties in the Katella Corridor 2010 General Plan Land Use Focus Area between Batavia and Main Streets to Urban Mixed Use (UMU) to establish consistency between the Urban Mixed Use General Plan land use designation and zoning classification in accordance with state law. •' Direct staff to prepare a General Plan Amendment and Zone Change for the portion of the Katella Corridor between Batavia Street and Main Street to establish a General Plan designation of General Commercial (GC) and Zoning classification of General Business (C2). 4. FISCAL IMPACT None. 5. STRATEGIC PLAN GO 3e. Create an environment to attract, retain and expand economic opportunities. 6. GENERAL PLAN IMPLEMENTATION Land Use Element Goal 1.0: Meet the present and future needs of all residential and business sectors with a diverse and balanced mix of land uses. ITEM 2 2/10/15 Economic Development Element Goal 1.0: Sustain a diversified economic base and strong fiscal stability. Policy 1.1: Provide for land uses that allow a variety of retail, service, manufacturing, institutional, office, and recreational businesses to locate in Orange. Implementation Program Implementation Program I -1 of the General Plan Implementation Plan calls for consistency between General Plan and zoning designations to be established. 7. DISCUSSION and BACKGROUND The City's 2010 General Plan Update was adopted on March 9, 2010. The 2010 General Plan Land Use Element included re- designation of properties in certain properties of the West Katella Corridor. A map depicting this area is provided in Attachment 3 to this report. The land use designation for properties in the West Katella Corridor between Batavia and the western City limit was changed from CR to UMIX in the 2010 General Plan update. The appropriate commercial zoning that corresponds to the UMIX General Plan designation is UMU. In accordance with State planning law (Government Code §65860), the City must establish consistency between the General Plan and its zoning. Furthermore, Implementation Program I -1 of the General Plan Implementation Plan calls for consistency between General Plan and zoning designations to be established. Some existing uses in the area (e.g., light industrial) would become legal non - conforming as a result of the proposed Zone Change. In conjunction with adoption of the 2010 General Plan, the City Council adopted Ordinance No. 12 -09 (OMC Section 17.38.065), making special accommodations for properties made non - conforming by the land use changes of the General Plan. A review of on- the - ground uses and status of existing uses in relation to the proposed Zone Change is provided in Attachment 5. Due to past feedback from the City Council the action on this Zone Change has been separated into two geographic areas: 1) the portion of the Katella Corridor west of Main Street to the City limit; and 2) the portion of the Katella Corridor between Batavia and Main Streets. This report and associated Ordinance addresses the area between Batavia and Main Streets. There is a companion item on the Council Agenda that addresses the area between Main Street and the City limit. Previous City Council Action: In May 2011, the City Council adopted the City's mixed use zoning standards and adopted Zone Change 1258 -10 to put the zoning in place for all but one of the mixed use zoning districts established in the 2010 General Plan. Mixed use zoning was not put in place in the West Katella ITEM 3 2/10/15 Corridor that is the subject of Zone Change 1268 -12 due to a 2 -2 Council vote, and one recusal due to a conflict of interest. Minutes from the City Council hearings, as well as Planning Commission hearings, are provided in Attachment 5 to this report. The City Council conducted a public hearing on this item on March 26, 2013 at which time the item was continued to allow the Council to obtain additional information from property owners and staff. At the March 26 meeting, property owners representing significant property holdings between Batavia and Main Streets expressed objections and concerns about the implications of the UMU zoning on speculated future redevelopment scenarios for their properties. The March 20 Agenda Report and Minutes are provided in Attachment 5 to this report. The item was continued again for further investigation at the May 28, 2013 Council meeting. The Minutes from that meeting are also provided in Attachment 5 to this report. On May 28 the item was continued again for 90 days. It returned to Council again on September 10, 2013, and was continued to October 22, 2013 at which time the Council continued it to an unspecified date in order to allow staff additional time to consider options in response to public comments. The City Council meeting Minutes of September 10, and October 22, 2013 are provided in Attachments 5 and 4 to this report, respectively. Zoning Options Since the October 2013 Council meeting, staff has explored additional options for zoning in the portion of the Katella Corridor between Batavia and Main Streets that respond to concerns expressed by both the Council and members of the public about the possible implications of the UMU zoning. Past public comment and recent property owner contact also suggest a lack of interest among property owners in future site redevelopment or infill development scenarios that would involve residential development. Additionally, the City's most recent Regional Housing Needs Allocation (RHNA) was adjusted downward from the 2010 Housing Element to the most recently adopted 2014 -2021 Housing Element, from 5,079 to 363 units. This reduction relieves some of the housing production expectation that has been placed on areas of the City with the UMIX General Plan land use designation, and provides greater flexibility for considering an alternative land use and zoning classification for the Batavia to Main segment of the Katella Corridor Focus Area. Therefore, staff is presenting the Council with an option to establish UMU zoning between Batavia and Main Streets via Ordinance No. 13 -13 to establish General Plan/Zoning consistency, or provide direction to staff to establish a strictly commercial land use and zoning scenario for this area. A map depicting the C2 zoning scenario is provided as Attachment 2. A change in General Plan land use designation from UMIX to GC will be needed in order to put the C2 zoning in place. The procedural requirements associated with General Plan Amendments require these changes to return to the City Council at a future date. The General Plan Amendment and Zone Change will also need to be reviewed by the Planning Commission prior to action by the City Council. ITEM 4 2/10/15 Public Notice A City Council public hearing notice was published in the Orange City News on January 28, 2015. In addition, 132 notices were mailed to the owners of affected properties and properties within a 300 foot radius. Hearing notices were also posted at City Hall, City Library, and City Fire Department posting locations. The City Council continued the public hearing at its October 22, 2013 meeting to an unspecified date. Planning Commission Hearing On February 4, 2013, the Planning Commission conducted a public hearing for the proposed zone change. The Commission adopted Resolution No. PC 07 -13, recommending approval of the Zone Change to the City Council by a vote of 5 -0. The Planning Commission Resolution, Minutes, and Staff Report are provided in Attachment 5. 8. ATTACHMENTS 1. Ordinance No. 13 -13 A. Exhibit A — Existing Zoning B. Exhibit B — Proposed Zoning 2. Zoning Alternative 3. 2010 Katella Corridor General Plan Focus Area Land Use Changes 4. October 22, 2013 City Council Minutes 5. October 22, 2013 City Council Staff Report (including September 10, 2013 City Council Staff Report and Minutes, May 28, 2013 City Council Staff Report and Minutes, and March 26, 2013 City Council Staff Report and Minutes) N:\CDD\PLNG\Applications\ZoneChanges\ZC 1268 -12 Katella Corridor UMIX\ CC\ CC_ Rpt_ 2_ l0 _15_ Batavia _Main _1_27_2015.docx ITEM 5 2/10/15 ORDINANCE NO. 13 -13 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE APPROVING ZONE CHANGE NO. 1268 -12 REZONING PROPERTIES IN THE KATELLA CORRIDOR 2010 GENERAL PLAN LAND USE FOCUS AREA BETWEEN BATAVIA STREET AND MAIN STREET TO URBAN MIXED USE (UMU) TO ESTABLISH CONSISTENCY BETWEEN THE URBAN MIXED USE GENERAL PLAN LAND USE DESIGNATION AND ZONING CLASSIFICATION IN ACCORDANCE WITH STATE LAW ZONE CHANGE NO. 1268 -12 APPLICANT: CITY OF ORANGE WHEREAS, on March 9, 2010 the City adopted its 2010 General Plan, including changes to land use designations in the Katella Corridor 2010 General Plan Land Use Focus Area to establish land use policy in greater alignment with on- the - ground uses and potential future uses, and to provide greater flexibility for property owners in the long -term use of their property; and WHEREAS, the land use designation for the portion of the Katella Corridor 2010 General Plan Land Use Focus Area between Batavia Street and Main Street was changed from Commercial Recreation to Urban Mixed Use to provide a range of development opportunities for existing underutilized commercial and industrial properties so as to encourage the incremental introduction of new commercial and residential uses, infill development or larger -scale property redevelopment that contributes to the economic stability and diversity of the Katella Corridor and City as a whole; and WHEREAS, the properties subject to Zone Change No. 1268 -12 have had a zoning classification of Commercial Recreation, which is not consistent with the Urban Mixed Use General Plan land use designation; and WHEREAS, California Government Code Section 65860 requires consistency between a city's General Plan and zoning designations; and WHEREAS, the City Council of the City of Orange is authorized by Government Code Section 65850 to adopt ordinances amending the City's zoning code; and WHEREAS, the City of Orange 2014 Housing Element includes Policy Action 7 which indicates that the City will facilitate infill housing to meet its housing need through ATTACHMENT NO. i 1 ORDINANCE 13 -13 KATELLA CORRIDOR (BETWEEN BATAVIA & MAIN STREETS) FEBRUARY 10, 2015 CC MTG.