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06-19-17 CUP Modular Bldg & Admin Offices 749 N. Poplar Street TO: Chair Glasgow and Members of the Planning Commission THRU: Anna Pehoushek Assistant Community Development Director FROM: Vidal F. Márquez Assistant Planner SUBJECT PUBLIC HEARING: Conditional Use Permit (CUP) No. 3038-17, Administrative Design Review (ADR) No. 0067-17, and Minor Site Plan Review (MNSP) No. 0877-16– J&M Concrete Contractors, 749 N. Poplar Street SUMMARY The applicant is proposing to occupy a tenant space and two modular buildings for administrative office in excess of 25% of the total gross floor area in the Industrial Manufacturing (M-2) zone. RECOMMENDED ACTION Adopt Planning Commission Resolution No. PC 16-17 entitled: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ORANGE APPROVING CONDITIONAL USE PERMIT NO. 3038-17, ADMINISTRATIVE DESIGN REVIEW NO. 0067-17 AND MINOR SITE PLAN REVIEW NO. 0877-16 PERMITTING TWO MODULAR BUILDINGS AND ALLOWING ADMINISTRATIVE OFFICE IN EXCESS OF 25% OF THE TOTAL GROSS FLOOR AREA IN THE INDUSTRIAL MANUFACTURING (M-2) ZONE LOCATED AT 749 N. POPLAR STREET Planning Commission Agenda Item June 19, 2017 Planning Commission Staff Report CUP No. 3038-17, ADR 0067-17, MNSP 0877-16 J&M Concrete June 19, 2017 Page 2 AUTHORIZATION/GUIDELINES Orange Municipal Code (OMC) Section 17.20.030 and Table 17.08.020 authorize the Planning Commission to review and take action on Conditional Use Permits for administrative offices in excess of 25% of the total gross floor area in the Industrial Manufacturing (M-2) zone. PUBLIC NOTICE On June 9, 2017, the City sent a Public Hearing Notice to a total of 75 property owners and occupants within a 300-foot radius of the project site. The project site was also posted in two locations with notification on that same date. ENVIRONMENTAL REVIEW Categorical Exemption: The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15303 (Class 3 - New Construction or Conversion of Small Structures) because it consists of the construction of a new, small structure (< 10,000 SF in urbanized area) zoned for such use, not involving the significant use of hazardous substances, where all necessary public services are available and where the area is not environmentally sensitive. There is no environmental public review required for a Categorical Exemption. PROJECT BACKGROUND Applicant: Michael Barth, J&M Concrete Contractors Property Owner: Michael Barth Property Location: 749 N. Poplar Street Existing General Plan Land Use Element designation: Light Industrial (LI) Existing Zoning Classification: Industrial Manufacturing (M-2) Old Towne: No Specific Plan/PC: No Site Size: 189,534 square feet (4.35 acres on two parcels) Circulation: One existing ingress/egress driveway located at the end of North Poplar Street cul-de-sac, which is a collector street with an ultimate right-of-way of 66 feet. Existing conditions: A single story 44,372 sq. ft. industrial development consisting of a concrete tilt-up building with 77 parking stalls. Planning Commission Staff Report CUP No. 3038-17, ADR 0067-17, MNSP 0877-16 J&M Concrete June 19, 2017 Page 3 Surrounding land uses and Zoning: The site is surrounded by M-1 zoned properties on the west and M-2 on the north, east and south sides of the parcels. Previous Applications/Entitlements: None. PROJECT DESCRIPTION The applicant ‘J&M Concrete Contractors’ (J&M) currently occupies administrative offices consisting of 3,862 sq. ft. of the 44,372 sq. ft. industrial building and two modular buildings 5,856 sq. ft. in size located to the south of the industrial building. The primary warehouse and manufacturing area (40,510 sq. ft.) of the building is no longer utilized and will be occupied by future tenant, Caliber Collision, for an automotive body repair and painting facility. Through a building permit required for tenant improvements to the modular buildings, it came to staff’s attention that the modulars had been installed approximately 5 years ago without City approval. During the review, staff determined the allowed administrative office exceeds 25% of the business gross floor area and a conditional use permit was required. The subject site is located at the end of the cul-de-sac along Poplar Street, north of Orangewood Avenue. Industrial uses are permitted by right in the M-2 zoning district with administrative offices not exceeding 25% of the business gross floor area. The subject site was developed in 1977 with a 44,372 sq. ft. concrete tilt-up building, front yard landscaping and 70 on-site parking stalls. Development Standards The following table provides the development standards for the industrial zoning district as set forth in OMC Section 17.20 for the permitting of two modular buildings 5,856 sq. ft. in size located to the south of the existing industrial building. Requirement Proposed Code Section Building Height Maximum of 45 feet. Additional building height may be permitted provided the building is setback from the nearest property line a distance equal to the height of the building, or with a Conditional Use Permit 14 feet Table 17.20.080, and 17.18.080(a), (b) Fence height May exceed 6 feet outside of front yard setback and when side yard is not adjacent to a public street. 5 foot chain link fence on west, north, and east property lines; 5 foot chain link fence with gate access along west 17.20.100.B and C Planning Commission Staff Report CUP No. 3038-17, ADR 0067-17, MNSP 0877-16 J&M Concrete June 19, 2017 Page 4 and south building frontage Floor Area Ratio (FAR) Maximum 1.0 .26 General Plan Land Use Element Landscaping  Front – 20 feet when adjacent to an arterial street  Combined Parking Areas: 10%  N/A - existing  N/A - existing Table 17.20.090 17.34.130.H Parking 3 spaces per service bay. 4 spaces/1,000 sq. ft. office 72 spaces 77 existing spaces Table 17.34.060.B Setback, Front along Poplar Street 20 feet 170 feet Table 17.20.090 Setback, Rear (along rail road right-of-way) 0 feet 219 feet Table 17.20.090 Setback, Interior Side 0 feet 216 feet –west side 191 feet – east side 77 feet – south side Table 17.20.090 APPLICATION(S) REQUESTED/REQUIRED FINDINGS Conditional Use Permit: The applicant is proposing to occupy 9,718 sq. ft. administrative office space in excess of 25% of the gross floor area in an M-2 zone. Required Findings: 1. A Conditional Use Permit shall be granted upon sound principles of land use and in response to services required by the community. 2. A Conditional Use Permit shall not be granted if it will cause deterioration of bordering land uses or create special problems for the area in which it is located. 3. A Conditional Use Permit must be considered in relationship to its effect on the community or neighborhood plan for the area in which it is located. 4. A Conditional Use Permit, if granted, shall be made subject to those conditions necessary to preserve the general welfare, not the individual welfare of any particular applicant. Planning Commission Staff Report CUP No. 3038-17, ADR 0067-17, MNSP 0877-16 J&M Concrete June 19, 2017 Page 5 ANALYSIS/STATEMENT OF THE ISSUES Issue 1: Use of Property The applicant, J&M will occupy 3,862 sq. ft. of the 44,372 sq. ft. industrial building and two modular buildings 5,856 sq. ft. in size located to the south of the industrial building. The proposed administrative office gross floor area of 100% would exceed the maximum 25% allowed as a permitted use in the M-2 zone, therefore a Conditional Use Permit is requested. Even though the administrative office request exceeds 25% allowed for J&M, the total office gross floor area for the entire site is 19%. Approval of such a request would not result in transforming the industrial property into a professional office environment due to the nature of the business as the headquarters for the concrete contractor and for modular buildings supporting additional office and storage space. The majority of the overall property would be utilized for auto body activity. The proposed hours of operation are Monday through Friday 8:00 AM to 5:00 PM. There will be twenty employees on site. The applicant’s letter of explanation is included in Attachment 3 of this report. Issue 2: Parking Based on the uses located at the subject site the current parking requirement is 72 parking spaces. The subject site contains a total of 77 parking spaces. The proposal requires 39 parking spaces for its administrative office use and the total required number of parking spaces would not increase. This would leave the site overparked by 5 spaces. Despite the higher proportion of administrative office use at the property, the site will maintain its industrial character, and will not diminish the integrity of the City’s M -2 zone. Staff does not anticipate that approval of the applicant’s request will result in negatively impacting the surrounding industrial uses, because other businesses surrounding the property include industrial manufacturing, warehouse, equipment suppliers and general product storage businesses and the parking required by the proposed administrative office use is provided for on the subject property. ADVISORY BOARD RECOMMENDATION Streamlined, Multi-Disciplined, Accelerated Review Team: The Streamlined, Multi-Disciplined, Accelerated Review Team (SMART) considered the project on September 23, 2016, March 22, 2017, and on May 10, 2017 recommended approval of the project subject to conditions, all of which are listed herein. Community Development Director: The Community Development Director has reviewed the design of the project in accordance with the Administrative Design Review process set forth in Section 17.10.070.E. of the OMC. He has determined that the building design is compatible and appropriate for the site and industrial district Planning Commission Staff Report CUP No. 3038-17, ADR 0067-17, MNSP 0877-16 J&M Concrete June 19, 2017 Page 6 and considered the general criteria set forth in OMC Section 17.10.070.E. and the findings as required in OMC Section 17.10.070.G.3. ATTACHMENTS/EXHIBITS Attachments to Report: 1. Planning Commission Resolution PC 16-17 2. Vicinity Map 3. Applicant Letter of Justification and Photos Exhibits provided to the Planning Commission: A. Site and Floor Plan received May 8, 2017 CC: Michael Leonard Barth J&M Concrete Contractors 749 N. Poplar Street Orange, CA 92868 mbarth@jmcontractors.com N:\CDD\PLNG\Applications\Conditional Use Permits\CUP 3038-17 J&M Concrete Modulars\PC\CUP 3038-17 PC Staff Report DRAFT.Docx