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HomeMy WebLinkAboutSR - AGR-6212 - DENSITY BONUS HOUSINGOP Og�� AGENDA ITEM March 10, 2015 TO: Honorable Mayor and Members of the City Council THRU: John W. Sibley City Manager FROM: Anna PehoushekKv Acting Assistant Community Development Director ReviewedNerified By: City Manager Finance Direc or To Be Presente : Chad Ortlieb Cons Calendar _ City Mgr Rpts Council Reports _ Legal Affairs Boards /Cmtes _ Public Hrgs Admin Reports X Plan/Environ 1. SUBJECT MAJOR SITE PLAN REVIEW (MJSP 0797 -14), DESIGN REVIEW (DRC 4776 -14) AND, A DENSITY BONUS HOUSING AGREEMENT WITH THREE AFFORDABLE HOUSING CONCESSIONS — LEMON GROVE, 1148 NORTH LEMON STREET 2. SUMMARY The applicant proposes to construct 82 multiple - family dwelling units as an affordable rental housing complex on a total of 3.54 acres at 1148 North Lemon Street. A density bonus is being requested pursuant to Chapter 17.15 of the Orange Municipal Code to allow a density of 27.15 units per acre. Concessions are requested for parking, building height and, building stories. 3. RECOMMENDATION APPROVE RESOLUTION NO. 10849 A resolution of the City Council of the City of Orange approving Major Site Plan Review 0797- 14, Design Review 4776 -14 and, a Density Bonus Housing Agreement with three affordable housing concessions for the project known as Lemon Grove Apartments located at 1148 North Lemon Street 4. FISCAL IMPACT If approved, the recommended action will have a neutral fiscal impact. Proposed financial assistance from the City for the project and its fiscal impact are covered in a separate staff report on the Council agenda. ITEM„ 1 1 3/10/15 5. STRATEGIC PLAN GOAL(S) 1. Provide for a safe community Strategy: a) Assure the development of the City occurs in a fashion that maximizes public safety. 2. Be a fiscally healthy community Strategies: a) Expend fiscal resources responsibly. b) Effectively manage and develop City assets. 3. Enhance and promote quality of life in the community Strategies: a) Support and enhance attractive, diverse living environments. b) Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services. 6. GENERAL PLAN IMPLEMENTATION The project implements the General Plan as follows: Manages and transitions from adjacent high density Land Use Policy 1.2 residential projects and facilitates infill construction Housing Policy Action 7.0 Contributes to a range of housing density Land Use Policy 1.3 Meets, exceeds or, is compatible with nearby design Land Use Policy 1.4 and 6.1 standards Urban Design Policy 1.1 and 1.3 Minimizes effect on privacy and character of Land Use Policy 1.6 surrounding neighborhoods/Provides appropriate Urban Design Policy 4.1 transition Is a walkable development Land Use Policy 6.6 Provides a landscaped streetscape Land Use Policy 6.8 Supports alternative transportation and transit oriented- Circulation and Mobility Policy 2.2 design and 2.8 Manages stormwater, reduces pollutant runoff and, Natural Resources Policy 2.13, 2.14 minimizes impervious surfaces and, 2.15 Public Safety Policy 2.4 Pays impact fees to maintain City park need levels Natural Resources Policy 5.1 and 5.7 ITEM 2 3/10/15 Implements seismic safety construction standards, fire Public Safety Policy 1. 1, 3.4 and, suppression site design and, pays fire impact fees for 3.8 Fire Department resources Pays police impact fees for Police Department Public Safety Policy 6.2, 7.2 and, resources, uses crime prevention project design features, 7.3 includes natural surveillance through physical design Implements wall barriers and construction materials to Noise Policy 1.3, 1.4, 1.5 and, 3.1 shield residents from railroad and exterior noise Continues to maintain support for the adjacent Katella Noise Policy 3.2 Avenue rail crossing quiet zone Adheres to the construction noise hours Noise Policy 7.1 — 7.3 Provides for public right -of -way acquisition of Katella Infrastructure Policy 3.6 inclusive segment of property Provides all on and adjacent off -site utility needs of the Infrastructure Policy 4.1 — 4.4 project Is high quality design with integrated circulation Urban Design Policy 6.1 Contributes positively to the quality of the surrounding Urban Design Policy 6.2 neighborhood Conserve and improve the condition of the existing Housing Goal 1.0, Policy Action standard affordable housing stock. 3.0 Develops housing to meet the needs of Low- and Housing Goal 2.0 Moderate - Income households. Support Community Housing Development Housing Policy Action 9.0 Organization New Construction Projects 7. DISCUSSION and BACKGROUND Existing Site The existing site consists of three parcels prior to a Lot Line Adjustment that will result in two parcels. The site currently consists of approximately 2 1 /2 acres with industrial uses and buildings and about %2 acre of a former railroad used parcel (Attachment 4 — Existing Site Photos). Approximately 46,000 square feet of building area exists on the industrially used site. The site, including the former railroad parcel, is also used for construction vehicle storage and parking. The site abuts a portion of the City's industrial zone and is adjacent to the Katella Avenue commercial corridor. The project site's higher density residential zoning is consistent with that of the multi - family development to the immediate east that ultimately transitions to single family neighborhoods further to the east across Glassell Street. Many of the uses to the north, south and, west retain their historical industrial uses. An active railroad runs north and south to the west of the project site. There is no predominant architectural theme established in the area. However, Citrus Grove is a three story affordable apartment complex located on Lemon Street two parcels ITEM 3 3/10/15 south of the project site. Citrus Grove was approved by the City in 2008 and the proposed Lemon Grove project is by the same applicant who seeks to utilize a very similar building format, architecture, colors and materials and, site layout. Specific uses surrounding the site and their corresponding zoning are as follows: North - Industrial warehouse, manufacturing and, accessory offices and Katella Avenue in a General Business (C -2) zone. South — Industrial warehouse, manufacturing and, accessory offices in a Residential Multiple Family (R -3) zone. East - Lemon Street followed by two story multi - family housing in a Residential Multiple Family (R -3) zone. West - Active railroad right -of -way in the Industrial (M -2) zone followed by the City's Public Works yard. Proposed Project The applicant proposes to construct the following: • 81 affordable rental apartments and one manager's unit for a total of 82 units in four buildings. (Exhibit A — Large scale drawings) as noted in the below table. Building Square Feet Height Stories Units A 24,390 34 3 22 plus office with community room and laundry room B 23,680 347" 3 24 C 26,380 34 3 24 D 13,240 34 3 12 Units would be constructed pursuant to a Density Bonus Housing Agreement with the City with a minimum twenty -five (25) Housing Units to be restricted to Low Income Households for Eligible Tenants. The whole complex is proposed as affordable but only 25 units are reserved as affordable in the Density Bonus Housing Agreement due to contractual needs of the applicant. • A linear storage building along the railroad spur at the north end of the property to facilitate the storage of building maintenance equipment for the property as well as other affordable housing properties under the same management. The storage building is 2,500 square feet in area. • An attached community room and laundry room in building A. • A 164 space parking lot with an onsite circulation system. Carports are provided in conjunction with some of the spaces. The site entry and exiting occurs exclusively from ITEM 4 3/10/15 Lemon Street through a card- controlled gated access with a central intercom island for visitor access. The project plans reviewed by the Planning Commission had 180 parking spaces and a right turn only exit onto Katella Avenue by utilizing the former railroad spur section of the property. Katella Avenue exiting and 16 parking spaces have been removed from the project plans and been replaced with landscaping and relocation of the linear storage building. • Site, building, and parking lot perimeter landscaping with inter - dispersed interior walkways. • Black tube steel fencing or split -face concrete walls at property perimeters where existing building walls are not adjacent to the site or where existing fences or walls cannot be refurbished. • 21,958 square feet of usable open space that includes plaza space, patio area, two tot lots and landscaped open space A detailed discussion of the project in relation to City development standards, bulk and scale, design features, and site amenities is provided in the Design Review Committee and Planning Commission staff reports. Collectively, the Planning Commission did not have any specific concerns with regard to any issue items in the Planning Commission staff report. However, a significant discussion occurred regarding the use of the former railroad spur section of the property for exiting onto Katella Avenue and parking in response to public comment. The applicant subsequently revised the plans to remove the Katella Avenue exiting and substantial parking on the former railroad spur. Density Bonus Under the General Plan, the maximum number of units allowed at this site for a market -rate housing project is 24 per acre. The project proposes 27.15 units per acre which is an 11.6% (3.15 unit per acre) increase in the density for the project. OMC Section 17.15.030 of the City's Density Bonus program describes projects that are eligible for the density bonus. All housing developments consisting of five or more dwelling units (excluding any units permitted by the density bonus awarded) are eligible for the density bonus program. The applicant proposes a Density Bonus Housing Agreement for a minimum of twenty -five (25) Housing Units (30.5 %) to be restricted to low income households for eligible tenants. Only 10% of the units are required to be restricted to low- income households in order to for the project to be eligible for a Density Bonus Housing Agreement. Hence, the project proposes 20.5% more low - income units than the minimum eligibility threshold for a density bonus. Therefore, the project qualifies for the requested density bonus. The increased density is authorized if the City approves the Density Bonus Hosing Agreement. The Density Bonus Housing Agreement is similar to other agreements that the City has entered into with this developer for other projects in the City. Concessions and Incentives ITEM 5 3/10/15 Orange Municipal Code (OMC) Chapter 17.15 implements State Density Bonus Law, which provides that a local government shall grant a density bonus and regulatory concessions and incentives to a developer of a housing development. The project qualifies for and is seeking approval of a Density Bonus Housing Agreement by the City Council and qualifies for up to three concessions to code requirements that would otherwise normally apply to non - affordable housing projects. The three concessions sought for the project are parking, exceedance of building height thresholds without need for a Conditional Use Permit and, exceedance of story thresholds without need for a Conditional Use Permit. Each concession is discussed further as follows: Parking: The project proposes to provide 164 parking spaces instead of the 204 that would be normally be required for a market -rate project. OMC Section 17.15.050C. states that the City must reduce the required parking for the entire housing development, including the market rate units, to two parking spaces per unit. Hence, at 82 units, the 164 parking spaces provided meets the OMC requirement with a Density Bonus Housing Agreement. A detailed comparison between the 164 spaces being provided and what normally would be required is shown in the attached Planning Commission staff report, under Issue Item 1 on page 12. The reduced parking standards are treated as a concession or incentive because they are lower than normally required by the Zoning Ordinance. Building Height: The building heights are proposed to be 34 feet and 7 inches. The zoning code limits building heights to 32 feet, unless a Conditional Use Permit is approved or, in this case, an affordable housing concession is approved. The Design Review Committee, Planning Commission, and staff do not believe the height of the building is problematic given the heights approved by the City for the Citrus Grove project and given that the project is south of the Katella Avenue Commercial corridor, east of an active railroad right -of -way and industrial uses, north of industrial uses property and, transitioning in height from two story apartment buildings across Lemon street to the east. Stories: Three stories are proposed. The zoning code limits project to two stories, unless a Conditional Use Permit is approved or, in this case, an affordable housing concession is approved. The Design Review Committee, Planning Commission, and staff do not believe the number of stories is problematic for the same reasons stated under the building height discussion above. Environmental Review Categorical Exemption: The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15332 (Class 32 — In- fill Development Projects) as described in detail in Attachment 6. ITEM 6 3/10/15 No public review is required. Committee and Commission Review At the February 18, 2015, meeting, the Planning Commission unanimously (4 -0) recommended that the City Council approve this item subject to recommended conditions of approval. At the meeting only one person spoke in opposition to the project. His concerns were with the project exit onto Katella Avenue and its effect on the railroad quiet zone, the spur parking, the project's traffic analysis and how it was considered a Class 32 CEQA exemption, parking and, storage unit invitation for graffiti. Another person provided written correspondence in opposition to the number of parking spaces for the project. Further written correspondence from that person is attached (Exhibit B), along with the original correspondence, for the Council's consideration. The matter of the Katella Avenue exit has been eliminated from the project scope as discussed in the project description. At the January 21, 2015 meeting, the Design Review Committee (DRC) unanimously (4 -0) recommended that the Planning Commission recommend City Council approval of the project subject to recommended conditions of approval. Of note, recommended Condition 17 would require that the front elevation of Building A return to the DRC prior to issuance of a building permit and, the redesign of the elevation shall take into consideration additional roof forms to break up the mass of the fagade and, the DRC recommendation is to either reduce the number of bedrooms at the third floor or to increase the amount of roof on the lower floors in some manner. No persons spoke in opposition to the project at the meeting. 8. ATTACHMENTS Attachments to Report: 1. City Council Resolution No. 10849 for Major Site Plan Review 0797 -14, Design Review 4776- 14 and, a Density Bonus Housing Agreement with three affordable housing concessions 2. Density Bonus Housing Agreement 3. Vicinity Map 4. Existing Site Photographs 5. Photographic Examples of Citrus Grove for Color and Material reference 6. Planning Commission Staff Report Dated February 18, 2015 7. Planning Commission Resolution 07 -15 8. Planning Commission Meeting Minutes Dated February 18, 2015 9. Design Review Committee Staff Report Dated January 21, 2015 10. Design Review Committee Final Minutes of the January 21, 2015, meeting ITEM 7 3/10/15 Exhibits: A. Submitted Plans and Exhibits date stamped March 10, 2015 B. Public Comments cc: Orange Housing Development Corporation and C &C Development Attn: Todd Cottle 14211 Yorba St., Ste. 200 Tustin, CA 92780 ITEM s 3/10/15 RESOLUTION NO. 10849 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE APPROVING MAJOR SITE PLAN REVIEW 0797 -14, DESIGN REVIEW 4776 -14 AND, A DENSITY BONUS HOUSING AGREEMENT WITH THREE AFFORDABLE HOUSING CONCESSIONS FOR THE PROJECT KNOWN AS LEMON GROVE APARTMENTS LOCATED AT 1148 NORTH LEMON STREET APPLICANT: LEMON GROVE, LP WHEREAS, Major Site Plan Review 0797 -14, Design Review 4776 -14 and, a Density Bonus Housing Agreement with three Affordable Housing Concessions were filed by Lemon Grove, LP in accordance with the provisions of the City of Orange Municipal Code; and WHEREAS, Major Site Plan Review 0797 -14, Design Review 4776 -14 and, a Density Bonus Housing Agreement with three Affordable Housing Concessions were processed in the time and manner prescribed by state and local law; and WHEREAS, the Density Bonus Housing Agreement is for an increase in density from 24 units per acre to 27.15 units per acre with concessions to allow 164 parking spaces, instead of the 204 that would normally be required under the Orange Municipal Code (OMC) for a market -rate project; an increase in building height to 34 feet and 7 inches, instead of the 32 feet that would normally be required under the OMC without a Conditional Use Permit; and, three stories, instead of the two stories that would normally be required under the OMC without a Conditional Use Permit; and WHEREAS, on January 14, 2015, the Staff Review Committee reviewed Major Site Plan Review 0797 -14, Design Review Committee 4776 -14 and, a Density Bonus Housing Agreement with three Affordable Housing Concessions and recommended that the application proceed; and WHEREAS, on January 21, 2015, the Design Review Committee reviewed Major Site Plan Review 0797 -14, Design Review Committee 4776 -14 and, a Density Bonus Housing Agreement with three Affordable Housing Concessions and recommended by a unanimous vote that the Planning Commission recommend that the City Council approve the project subject to recommended conditions of approval; and WHEREAS, the Planning Commission conducted one duly advertised public hearing on February 18, 2015 for the purpose of considering Major Site Plan Review 0797 -14, Design Review Committee 4776 -14 and, a Density Bonus Housing Agreement with three Affordable Housing Concessions for the property located at 1148 North Lemon Street and recommended by a unanimous vote that the City Council approve the project subject to recommended conditions of approval. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange hereby approves Major Site Plan Review 0797 -14, Design Review 4776 -14 and, a Density Bonus Housing ATTACHMENT NO. 1 CC RESOLUTION 10849 LEMON GROVE MARCH 10, 2015 CC MTG.