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SR - ORD-05-16 -April 12, 2016 TO: THRU: FROM: Honorable Mayor and Members of the City Council Rick Otto, City Manager William Crouch, AICP, AIA, NCARB, LEED (AP) Community Development Director 1. SUBJECT An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code to define and streamline the review process for instructional uses, providing updated standards for the development of senior housing in commercial zones, eliminating reference to mixed use developments in commercial zones, and addressing general office, medical office, and privately operated residential uses in the public institution zone. 2. SUMMARY In October 2012, the City Council directed the Community Development Department to undertake amendments to Title 17 of the Orange Municipal Code (Zoning Ordinance) with the purpose of streamlining the review of certain types of development applications and uses in order to simplify and make the public's interaction with the City more streamline, as well as to make more efficient use of City staff resources. The subject Ordinance Amendment represents the fifth phase of Code streamlining and seeks to accomplish the following: 1. Create performance standards instead of requiring a Conditional Use Permit for instructional uses that do not exceed basic parking equivalency of a tenant space. 2. Require the use of base General Plan Land Use Designation density and floor area ratios for senior housing in strictly commercial zones. 3. Remove antiquated code references to senior housing in commercial zones where reference is made to using residential standards. 4. Eliminate reference to Mixed Use Developments in commercial only zones. 5. Accommodate limited private office, medical office and residential uses in the Public Institution zone. ITEM I I• a 1 4/12/16 3. RECOMMENDATION (1) Find the Ordinance categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15305. (2) Approve First Reading of Ordinance No. 05 -16 amending Title 17 of the Orange Municipal Code related to providing a process for instructional uses, providing updated standards for the development of senior housing in commercial zones, eliminating reference to mixed use developments in commercial zones, and addressing general office, medical office, and privately operated residential uses in the Public Institution Zone. 4. FISCAL IMPACT A positive fiscal impact is anticipated with developments taking advantage of streamlined process, staff processing efforts being diverted to reduce consultant costs, and business being more easily accommodated in Commercial and Public Institution zones. 5. STRATEGIC PLAN GOAL(S) 2. Be a fiscally healthy community Strategy: a) Expend fiscal resources responsibly. b) Create an environment to attract, retain and expand economic opportunities. 3. Enhance and promote quality of life in the community Strategy: a) Support and enhance attractive, diverse living environments. 4. Provide for outstanding public service Strategy: a) Provide facilities and services to meet customer expectations. 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. Goal 3.0 Create commercial uses that provide a solid economic base and employment opportunities and identify Orange as an attractive and diverse shopping destination. ITEM 2 4/12/16 Policy 6.1 Ensure that new development is compatible with the style and design of established structures and the surrounding environment. Growth Management Element Policy 1.8 Encourage the development of housing within close proximity to jobs and services. Economic Development Element Goal 1.0 Sustain a diversified economic base and strong fiscal stability. Housing Element Goal 3.0 Identify adequate sites which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage a variety of types of housing for all income groups. Policy Action 6.0 Provision of senior housing opportunities 7. DISCUSSION and BACKGROUND The subject Ordinance represents the fifth tier of development streamlining opportunities stemming from the City's 2012 Organizational Assessment. The proposed Ordinance makes revisions to the Zoning Ordinance for purposes of streamlining the review process by: providing more flexible zoning restrictions, and incentivizing development for instructional uses, and senior housing in strictly commercial zones; removing references to Mixed Use Development in strictly commercial zones; and, addressing private office, medical office, and residential uses in the Public Institution (PI) zone. Specifically, the Ordinance: • Removes the City's longstanding policy of requiring a Conditional Use Permit for any instructional use in commercial and industrial zones such as karate studios, physical fitness instruction, art instruction, CPR certification training, and driver test instruction. • Recognizes "Instructional use" as a permitted use subject to special use regulations (designated by "P *" in the land use matrix) in commercial, mixed -use, and industrial zones. • Establishes special use parking regulations and requirements for "Instructional uses" that are based on alternate - permitted, use - equivalent, parking capacity for the associated tenant space. • Adds provisions for any "Instructional use" that exceeds special use parking regulations to have the opportunity to apply for a Conditional Use Permit (designated by "C +" in the land use matrix) supported by a parking analysis. • Establishes Zoning Administrator authority to review qualifying Conditional Use Permits for instructional uses. • Provides new definitions for "instructional use" and "senior housing." • Changes the manner in which residential development potential for senior housing in commercial zones is calculated, utilizing the floor area ratio of the base commercial land use designation to determine the maximum number of residential units rather than the ITEM 3 4/12/16 Neighborhood Mixed Use (NMU -24) density cap of 24 units per acre and the minimum floor area ratio of 1.0. • Removes antiquated code references that require senior housing to use Residential Multiple Family (R -3 or R -4) zoning standards, exclusively. • Removes antiquated code references to Mixed Use Developments in commercial zones. • Accommodates privately owned and/or operated office, medical office, and residential uses on a limited basis in the PI zone. A detailed discussion of the Code revisions is presented in Attachment 5 to this report. Planning Commission Review The Planning Commission conducted a public hearing on the proposed Ordinance on March 21, 2016. One member of the public spoke on the item with concern that Chapman University could bypass parking allowances in the area for housing development in the PI zone. The Commission recommended City Council approval of the proposed Ordinance by a vote of 4 -0. 8. ATTACHMENTS 1. Ordinance No. 05 -16 (clean copy) 2. Ordinance No. 05 -16 (redline copy) 3. Planning Commission Resolution No. 02 -16 4. Planning Commission Minutes, March 21, 2016 5. Planning Commission Staff Report, March 21, 2016 N: \CDD \PLNG \Ordinance Amendments\Dev_Strm_Commercial Senior Housing Density_Instructional Uses \Council Report vl .docx ITEM 4 4/12/16 ORDINANCE NO. 05-16 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE AMENDING TITLE 17 OF THE ORANGE MUNICIPAL CODE TO DEFINE AND STREAMLINE THE REVIEW PROCESS FOR INSTRUCTIONAL USES, PROVIDING UPDATED STANDARDS FOR THE DEVELOPMENT OF SENIOR HOUSING IN COMMERCIAL ZONES, ELIMINATING REFERENCE TO MIXED USE DEVELOPMENTS IN COMMERCIAL ZONES, AND ADDRESSING GENERAL OFFICE, MEDICAL OFFICE, AND PRIVATELY OPERATED RESIDENTIAL USES IN THE PUBLIC INSTITUTION ZONE WHEREAS, the City desires to put in place clear policies and procedures that: avail the public of efficient and expeditious review of instructional uses in support of entrepreneurism, the business community, and economic vitality of the City; provide for efficient and effective development standards for Senior Housing in strictly commercial zones, which support the City's housing goals and places Senior Housing near commercial services; and, remove code references to Mixed Use Developments in Commercial only zones to provide consistency with Ordinance 08- 15; and provide or clarify standards for private office and residential uses in the Public Institution zone in support of the institutional uses they may serve, and WHEREAS, the City desires to formalize instructional uses as permitted subject to performance standards or, if performance standards are exceeded, to allow instructional uses to apply for a Conditional Use Permit subject to a regulation that would require a parking analysis; and WHEREAS, the City desires to incentivize Senior Housing projects in commercial zones by replacing adherence to density and minimum floor area ratio development constraints of the Neighborhood Mixed Use 24 DU /AC zone with the base General Plan Land Use designation density and floor area ratio because senior housing may be well suited uses in commercial districts due to the convenience of goods and services, medical care, and public transportation to serve the elderly citizens of Orange; and WHEREAS, the City desires to maintain consistent codes that eliminate Mixed Use Development in commercial only zones, consistent with Ordinance 08 -15; and. WHEREAS, the City desires to accommodate limited privately owned and /or operated residential, professional office, and medical offices to complement its major institutional uses to increase convenience for its citizens, and encourage long -term viability of properties in the public Institution zone. ATTACHMENT NO. 1 ORDINANCE NO. 05-16 (CLEAN COPY) TITLE 17 PUBLIC HEARING April 12, 2016 CC MTG