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06 Attachment 3 - August 23, 2023 Planning Commission Staff Report with Exhibits 1-9PREPARED BY: Jocelyn Shoopman and Erin Walters Associate Planner and Associate Planner Reviewed by: Community Development Director, Planning Manager, and Town Attorney -6872 www.losgatosca.gov TOWN OF LOS GATOS PLANNING COMMISSION REPORT MEETING DATE: 08/23/2023 ITEM NO: 5 DATE: August 18, 2023 TO: Planning Commission FROM: Joel Paulson, Community Development Director SUBJECT: Forward a Recommendation to the Town Council on a Request to Amend the General Plan Land Use Designation of 16492 Los Gatos Boulevard and Assessor Parcel Number (APN) 532-07-086 from Low Density Residential to Neighborhood Commercial; Amend the General Plan Land Use Designation of Caltrans Right-of-Way Adjacent to 14685 Oka Road from Low Density Residential to Medium Density Residential and from R:1:8 to R-M:14-22; and Apply the Housing Element Overlay Zone to Allow for Increases to the Allowable Density, Height, Floor Area Ratio, and Lot Coverage to the Sites Included in the Sites Inventory Analysis of the 2023-2031 Housing Element: 08029, 42408058, 42408059, 42408060, 42408074, 52924001, 52924003, and 53207085; 401 through 409 Alberto Way; 620 and 14000 Blossom Hill Road; 16210, 16240, 16245, 16250, 16260, and 16270 Burton Road; Cal Trans Right-of-Way Adjacent to 14685 Oka Road; 110 and 206 Knowles Drive; 445 Leigh Avenue; 440 Los Gatos Almaden Road; 16603 Lark Avenue; 14823, 14831, 14849, 14859, 14917, 14925, 15300, 15349, 15367, 15405, 15425, 15480, 15500, 15795, 16151, 16203, 16392, and 16492 Los Gatos Boulevard; 50 and 165 Los Gatos Saratoga Road; 61 Montebello Way; 14800 and 14840 Oka Road; 50 Park Avenue; 101 South Santa Cruz Avenue. An Environmental Impact Report (EIR) was Prepared and Certified for the 2040 General Plan Update on June 30, 2022, which Included the Proposed General Plan Amendments. No further Environmental Analysis is Required. Zoning Code Amendment Application Z-23-003 and General Plan Amendment Application GP-23-003. Applicant: Town of Los Gatos. PAGE 2 of 6 SUBJECT: General Plan Amendments, Re-Zonings, and Housing Element Overlay Zone/ Z-23-003 and GP-23-003 DATE: August 18, 2023 RECOMMENDATION: Due to notice letters that were delayed in delivery, staff recommends that the Planning Commission hold the public hearing, ask questions of staff, and receive any verbal public comment from those in attendance, and continue the item to a date certain of September 13, 2023, to continue the public hearing for any additional public comment, deliberation, and recommendation. BACKGROUND: The Town of Los Gatos is required to prepare an updated Housing Element for the period covering 2023-2031 that is certified by the State Housing Community Development Department (HCD). The Housing Element is one of nine State-mandated elements that must be included in every General Plan. The Housing Element assesses housing needs for all income groups within the community and identifies implementation programs to meet those housing needs. Unlike other General Plan elements, the Housing Element must be updated every eight years, rather than every 10 to 20 years, must address statutory requirements regarding its content, and is for the sixth cycle planning period is 1,993 units. On January 30, 2023, the Town Council adopted the 2023-2031 Housing Element with modifications to the Sites Inventory, finding that it was in substantial compliance with State law. Two of the Implementation Programs contained in the Housing Element adopted by Town Council are the basis for the items under consideration and described in further detail below. The Town continues to work with HCD to get the 2023-2031 Housing Element certified and resubmitted its latest version to HCD on March 31, 2023. The Housing Element Advisory Board (HEAB) met on July 20, 2023, to review and discuss portion nterim working Draft Revised Housing Element addressing HCD findings/comment letter received by the Town on May 30, 2023. The most recent information on the status of the ongoing Housing Element update process can be viewed online at: https://www.losgatosca.gov/1735/Housing-Element. PAGE 3 of 6 SUBJECT: General Plan Amendments, Re-Zonings, and Housing Element Overlay Zone/ Z-23-003 and GP-23-003 DATE: August 18, 2023 DISCUSSION: A. General Plan Committee On July 20, 2023, at a special meeting, the General Plan Committee (GPC) reviewed the requests described below and recommended approval of the General Plan amendments to the Planning Commission and Town Council. B. General Plan Land Use Designation The following Implementation Program is included in the Housing Element adopted by Town Council on January 30, 2023, and is presented below, as modified and presented in the March 2023 Draft Revised Housing Element. This program proposes to amend the General Plan to comply with State Housing Element law: Implementation Program BG, General Plan Amendment Amend the General Plan to modify the designation of 16492 Los Gatos Boulevard and APN 532-07-086 from Low Density Residential to Neighborhood Commercial and modify the designation of the Cal Trans right- of-way from Low Density Residential to Medium Density Residential, and establish new maximum densities for the High Residential, Medium Density Residential, Low Density Residential, Mixed-Use, Neighborhood Commercial, and Central Business District land use designations to provide for the development of housing for the sites in the Sites Inventory. In response to Implementation Program BG, staff has drafted amendments to the General Plan designation of 16492 Los Gatos Boulevard and APN 532-07-086 from Low Density Residential to Neighborhood Commercial and to modify the designation of the Caltrans right-of-way from Low Density Residential to Medium Density Residential (Exhibit 4 through 6). The establishment of new development standards for the applicable General Plan Land Use designations of the 2023-2031 Housing Element was considered under Item 4 of C. Zoning The following Implementation Program is included in the Housing Element adopted by Town Council on January 30, 2023, and is presented below, as modified and presented in the March 2023 Draft Revised Housing Element. This program proposes to amend the Zoning Code to comply with State Housing Element law: PAGE 4 of 6 SUBJECT: General Plan Amendments, Re-Zonings, and Housing Element Overlay Zone/ Z-23-003 and GP-23-003 DATE: August 18, 2023 DISCUSSION (continued): Implementation Program BF, Zoning Code Amendments Amend the Zoning Code to comply with State law and ensure adequate sites are available to accommodate the identified sites in the Sites Inventory (Exhibits 2 and 3). These Code revisions include: 1. Amend the Zoning Code to include a HEOZ to apply to the sites included in the Sites Inventory to modify the development standards (i.e., density, lot coverage, FAR, height) on those sites; 2. Amend the Affordable Housing Overlay Zone to increase the maximum allowable density from 20 dwelling units per acre to 40 dwelling units per acre; 3. Clarify the text of the non-residential zones regarding housing; 4. Rezone the Caltrans Right-of-Way Site E3 from R:1:8 to R-M:14-22; 5. Amend the Accessory Dwelling Unit Ordinance; and 6. Amend the Density Bonus Ordinance. In response to items #1 and #4 of Implementation Program BF, staff has drafted amendments re-zone the Caltrans right-of-way site from R:1:8 to R-M:14-22 (Exhibit 7) and apply the HEOZ to the sites included in the Sites Inventory of the 2023-2031 Housing Element (Exhibit 8). Maps showing the rezoning of the sites in the Sites Inventory will be included in the ordinance that will go to the Town Council for future adoption and the ordinance will be codified. The component of item #1 which requires amendment of the Zoning Code, as well as item Zoning Code amendments provided in Exhibit 9 have been provided for context only. PUBLIC NOTIFICATION: Public notification has included a legal ad in the paper, noticing property owners, tenants, and properties located within 300 feet of all the sites listed within the Town. The meeting has been Following the mailing of notice letters for this item, the Town received some returned to sender letters due to errors with the postage on the envelopes. Town staff has determined that six of these letters were the only notice letter sent to the subject parcel, and therefore are important for notification of that property owners. Because a majority of the notice letters were successfully mailed, staff recommends that the Planning Commission hold the public hearing, PAGE 5 of 6 SUBJECT: General Plan Amendments, Re-Zonings, and Housing Element Overlay Zone/ Z-23-003 and GP-23-003 DATE: August 18, 2023 ask questions of staff, and receive any verbal public comment from those in attendance on August 23, 2023. Due to the notice letters that were delayed in delivery, staff recommends PUBLIC NOTIFICATION (continued): that following public comment on the item, the item be continued to a date certain of September 13, 2023, to continue the public hearing for any additional public comment, deliberation, and recommendation. The notice letters that were returned to the Town because of postage errors have been corrected and resent. PUBLIC COMMENTS: As of the drafting of this report, no comments from the public have been received. CONCLUSION: A. Summary A request for approval of the following General Plan Amendments and Zone Changes: 1. Approval of a request to amend the General Plan to modify the land use designation of 16492 Los Gatos Boulevard and APN 532-07-086 from Low Density Residential to Neighborhood Commercial; 2. Approval of a request to amend the General Plan to modify the designation of the Caltrans right-of-way from Low Density Residential to Medium Density Residential; 3. Approval of a zone change for the Caltrans Right-of-Way Adjacent to 14685 Oka Road from R:1:8 to R-M:14-22; and 4. Application of the Housing Element Overlay Zone to the sites included in the Sites Inventory of the 2023-2031 Housing Element. B. Recommendation Due to the notice letters that were delayed in delivery, staff recommends that the Planning Commission hold the public hearing, ask questions of staff, and receive any verbal public comment from those in attendance, and continue the item to a date certain of September 13, 2023, to continue the public hearing for any additional public comment, deliberation, and recommendation. PAGE 6 of 6 SUBJECT: General Plan Amendments, Re-Zonings, and Housing Element Overlay Zone/ Z-23-003 and GP-23-003 DATE: August 18, 2023 EXHIBITS: 1. Draft Findings 2. Appendix D, Sites Inventory Analysis of the July 2023 Interim Working Draft Revised Housing Element 3. Appendix H, Sites Inventory Form of the July 2023 Interim Working Draft Revised Housing Element 4. Location Maps 16492 Los Gatos Boulevard (Showing Existing and Proposed General Plan Designations) 5. Location Maps Parcel 532-07-086 (Showing Existing and Proposed General Plan Designations) 6. Location Maps Caltrans Right-of-Way (Showing Existing and Proposed General Plan Designations) 7. Location Maps Caltrans Right-of-Way (Showing Existing and Proposed Zoning) 8. Location Maps 2023-2031 Housing Element (Showing Existing and Proposed Zoning) 9. Draft Zoning Code Ordinance Amendments, Division 5. Housing Element Overlay Zone PLANNING COMMISSION August 23, 2023 REQUIRED FINDINGS General Plan Amendment Application GP-23-003 Zone Change Application Z-23-003 Forward a Recommendation to the Town Council on a Request to Amend the General Plan Land Use Designation of 16492 Los Gatos Boulevard and Assessor Parcel Number (APN) 532-07-086 from Low Density Residential to Neighborhood Commercial; Amend the General Plan Land Use Designation of Caltrans Right-of-Way Adjacent to 14685 Oka Road from Low Density Residential to Medium Density Residential and from R:1:8 to R-M:14-22; and Apply the Housing Element Overlay Zone to Allow for Increases to the Allowable Density, Height, Floor Area Ratio, and Lot Coverage to the Sites Included in the Sites Inventory Analysis of the 2023-2031 Housing Element: -06-116, 424-07-116, 424-08-029, 424-08-058, 424-08-059, 424-08-060, 424-08-074, 529-24-001, 529-24-003, and 532-07-085; 401 through 409 Alberto Way; 620 and 14000 Blossom Hill Road; 16210, 16240, 16245, 16250, 16260, and 16270 Burton Road; Cal Trans Right-of-Way Adjacent to 14685 Oka Road; 110 and 206 Knowles Drive; 445 Leigh Avenue; 440 Los Gatos Almaden Road; 16603 Lark Avenue; 14823, 14831, 14849, 14859, 14917, 14925, 15300, 15349, 15367, 15405, 15425, 15480, 15500, 15795, 16151, 16203, 16392, and 16492 Los Gatos Boulevard; 50 and 165 Los Gatos Saratoga Road; 61 Montebello Way; 14800 and 14840 Oka Road; 50 Park Avenue; and 101 South Santa Cruz Avenue. An Environmental Impact Report (EIR) was Prepared and Certified for the 2040 General Plan Update on June 30, 2022, which Included the Proposed General Plan Amendments. No further Environmental Analysis is Required. Zoning Code Amendment Application Z-23-003 and General Plan Amendment Application GP-23-003. Applicant: Town of Los Gatos. FINDINGS: Required finding for CEQA: An EIR was prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the proposed General Plan Amendments. No further environmental analysis is required. Required consistency with the Town s General Plan: That the General Plan amendment is internally consistent with the existing goals and policies of the General Plan and its corresponding elements, in that the amendments will provide for the development of housing for the sites in the Sites Inventory to comply with Regional Housing Needs Allocation. That the proposed Zone Changes are consistent with the General Plan and its Elements in that the proposed zoning is consistent with the proposed General Plan designation. EXHIBIT 1 N:\DEV\FINDINGS\2023\HOEZ, Rezoning, and GP Amendments - Findings - PC 08-23-23.docx This Page Intentionally Left Blank Public Low Density Residential Low Density Residential Low Density Residential 16492 Los Gatos Boulevard Existing Land Use Designation Public Low Density Residential Low Density Residential Low Density Residential 16492 Los Gatos Boulevard Proposed Land Use Designation Public Low Density Residential Low Density Residential Low Density Residential Assessor Parcel Number 532-07-086 Existing Land Use Designation Public Low Density Residential Low Density Residential Low Density Residential Assessor Parcel Number 532-07-086 Proposed Land Use Designation Light Industrial Public Open Space Low Density Residential Low Density Residential Neighborhood Commercial Low Density Residential Medium Density Residential Low Density Residential Light Industrial Medium Density Residential Low Density Residential Caltrans Right-of-Way Existing Land Use Designation Low Density Residential Low Density Residential rial Public Open Space Low Density Residential Low Density Residential Neighborhood Commercial Low Density Residential Medium Density Residential Low DensityR Light Industrial Medium Density Residential Low Density Residentia Caltrans Right-of-Way Proposed Land Use Designation Low Density Residential MediumDensity Residential RMH PD R-1:8:PD R-1:8 ALBRIGHT SPECIFIC PLAN Caltrans Right Of Way Existing Zoning R-1:8 R-1:8 RMH PD R-1:8:PD R-1:8 ALBRIGHT SPECIFIC PLAN Caltrans Right Of Way Proposed Zoning 15300, 15349, 15367, 15405, 15425, 15480, and 15500 Los Gatos Boulevard CH R-1:8 R-1:8 R-1:8 R-1:8 CH R-M:5-12 RC C-1 O R-1:8 Prezone CH:PD RD RC C-1 C-1 R-1:8 Prezone R-1:8 CH:PD R-M:5-12 C-1 NORTH FORTY SPEC PLAN CH Existing Zoning 15300, 15349, 15367, 15405, 15425, 15480, and 15500 Los Gatos Boulevard R-1:8 R CH CH R-M:5-12 RC O CH:PD RD C-1 R-1:8 CH:PD R-M:5-12 CH:HEOZ C-1:HEOZ CH:HEOZ Proposed Zoning 110 and 206 Knowles Drive CampbellCAMPBELL CM R-1:8 C-1 CM:PD CM CM:AHOZ O O O R-1:8 O:PD R-1:8:PD R-M:5-12 R-1:8 R-1:8 Existing Zoning 110 and 206 Knowles Drive R-1:8 CM C-1 CM:PD CM CM:AHOZ O R-1:8:PD R-M:5-12 R-1:8 CampbellCAMPBELL CM:HEOZ CM:HEOZ Proposed Zoning 14000 Blossom Hill Road San JoseSAN JOSE BLOSSOM HILL RD MYRA DR R-1:8 C-1 RD R-1:10R-1:10 Existing Zoning 14000 Blossom Hill Road R-1:8 C-1 RD San JoseSAN JOSE C-1:HEOZ BLOSSOM HILL RD MYRA DR Proposed Zoning 440 Los Gatos-Almaden Road and 445 Leigh Avenue San JoseSAN JOSE HERSHNER DR ADELAIDE WY GREGG CT R-1:8 C-1 Existing Zoning 440 Los Gatos-Almaden Road and 445 Leigh Avenue R-1:8 San JoseSAN JOSE C-1:HEOZ HERSHNER DR ADELAIDE WY GREGG CT Proposed Zoning Caltrans Right-of-Way Adjacent to 14685 Oka Road; 16603 Lark Avenue; 14800 Oka Lane; 14800, 14840 Oka Road; and APNs 42408029, 42408058, 42408059, 42408060, 42408074 Campbell R-1:8 PD R-M:5-12 RMH R-1:8:PD O R-1:8 NORTH FORTY SPEC PLAN ALBRIGHT SPECIFIC PLAN R-M:5-12:PD R-M:5-12 R-1:8 CM Existing Zoning R-1:8 Caltrans Right-of-Way Adjacent to 14685 Oka Road; 16603 Lark Avenue; 14800 Oka Lane; 14800, 14840 Oka Road; and APNs 42408029, 42408058, 42408059, 42408060, 42408074 R-1:8 PD R-M:5-12 NORTH FORTY SPEC PLAN ALBRIGHT SPECIFIC PLAN R-1:8:PD O R-M:5-12:PD R-M:5-12 Campbell R-1:8:HEOZ R-M:5-12:HEOZ R-1:8:HEOZ NORTH FORTY SPEC PLAN:HEOZ HEOZ RMH Proposed Zoning 16210, 16240, 16245, 16250, 16260, 16270, and 16392 Burton Road; 14823, 14831, 14849, 14859, 14917, 14925 Los Gatos Boulevard; and APNs 42406116, 42407115, and 42407116 San Jose Campbell NORTH FORTY SPEC PLAN O R-1:10 CH:PD R-1:8 C-1 R-1:8 CH R-1:10 R-1:8:PD Existing Zoning 16210, 16240, 16245, 16250, 16260, 16270, and 16392 Burton Road; 14823, 14831, 14849, 14859, 14917, 14925 Los Gatos Boulevard; and APNs 42406116, 42407115, and 42407116 O R-1:10 CH:PD C-1 R-1:10 San Jose Campbell NORTH FORTY SPEC PLAN:HEOZ Proposed Zoning 15795 Los Gatos Boulevard CH R-1:8 C-1 R-1:8 Prezone O RD R-1:8 CH CH:PD C-1 Existing Zoning 15795 Los Gatos Boulevard R-1:8 CH O C-1 O R-1:8RD CH:HEOZ Proposed Zoning 16151 and 16203 Los Gatos Boulevard; and 620 Blossom Hill Road CH R-M:5-12 R-1:8:PS C-1 O R-M:5-12 CH:PD R-1:8 CH:PD O C-1 R-M:5-12:PD R-1:8 R-M:5-12 R-1:8 R-1:8 CHR-1:8:PD Existing Zoning 16151 and 16203 Los Gatos Boulevard; and 620 Blossom Hill Road CH R-1:8:PS R-M:5-12 O R-M:5-12 R-1:8 O CH:PD CH:PD O R-M:5-12:PD CH:HEOZ CH:HEOZ Proposed Zoning 16492 Los Gatos Boulevard and APN 53207085 R-1:8 O C-1 R-1:8 R-1:8:PS R-1D R-M:5-12 R-1:8:PD R-M:5-12 Existing Zoning 16492 Los Gatos Boulevard and APN 53207085 R-1:8 O C-1 R-1:8:PD R-M:5-12 C-1:HEOZ Proposed Zoning 401 through 409 Alberto Way; 50 Los Gatos-Saratoga Avenue; and APNs 52924001 and 52924003 R-1D R-1:8 R-1:20:PS RMH CH:PD CH R-M:5-12:PD R-1:10 CH:PD R-1:8 R-M:5-12 RC R-1:8:PD R-M:5-12:PD R-M:5-12 R-M:5-12:PD O:PDR-1D R-M:5-12:LHP R-1:8:PD R-M:5-12 Existing Zoning 401 through 409 Alberto Way; 50 Los Gatos-Saratoga Avenue; and APNs 52924001 and 52924003 R-1D R-1:20:PS RMH CH:PD R-1:8 CH R-M:5-12:PD CH:PD R-M:5-12 R-M:5-12:PD R-1:8:PD R-M:5-12:PD CH:PD:HEOZ CH:HEOZ Proposed Zoning 165 Los Gatos-Saratoga Avenue C-2 R-1D C-1 O R-1D:LHP RMH R-M:5-12:LHP:PD O R-1D:LHP R-M:5-12C-2:LHP R-M:5-12:LHP R-M:5-12 O:LHP O:LHP R-M:5-12:LHPR-M:5-12 O:LHP Existing Zoning 165 Los Gatos-Saratoga Avenue C-1 C-2 R-1D:LHP R-1D R-1D:LHP O R-M:5-12:LHP:PD O R-M:5-12C-2:LHP RMH R-M:5-12:LHP O:LHP P C-2:HEOZ Proposed Zoning 101 S. Santa Cruz Avenue, 50 Park Avenue, and 61 Montebello Way C-2 R-1D R:PD C-2:LHP RC R-1D:LHP HR-5 C-2:PD R-1D R-1:8 R-M:12-20 C-2:LHP:PD Existing Zoning 101 S. Santa Cruz Avenue, 50 Park Avenue, and 61 Montebello Way C-2 R-1D C-2:LHP RC C-2:PD R-1D C-2:HEOZ R-1D:HEOZ Proposed Zoning Chapter 29 - ZONING REGULATIONS ARTICLE VIII. - OVERLAY ZONES AND HISTORIC PRESERVATION DIVISION 5. HOUSING ELEMENT OVERLAY ZONE Page 1 of 2 DIVISION 5. HOUSING ELEMENT OVERLAY ZONE Sec. 29.80.555. Intent. The Housing Element Overlay Zone (HEOZ) ordinance in this division is intended to increase the supply and the mix of housing types, tenure, and affordability within the Town of Los Gatos. Through appropriate densities, concessions, and fee deferrals or waivers, the HEOZ encourages the development of housing affordable to all income levels on sites within the Town that are deemed to be most appropriate for such uses. The Housing Element lists sites within the Town of Los Gatos as a key housing opportunity for mixed income affordable housing projects. The designation of these sites will assist the Town in meeting its Regional Housing Needs Allocation (RHNA), as required by the State. Sec. 29.80.5560. HEOZ and underlying zoning. A property that has the HEOZ designation may be developed based on the standards provided in this division or, where standards are not specified, then based on the standards provided in the underlying zone. Pursuant to Government Code Section 65583.2(i), by right development will be allowed when 20 percent or more of the units are affordable to lower income households. Sec. 29.80.590. HEOZ general development standards. Proposed development within the HEOZ shall be designed and constructed in conformity with the development standards for the corresponding zoning and General Plan Land Use designation in Table 1A (Overlay Zones Development Standards). Table 1A (HEOZ Development Standards) General Plan Land Use Designation Zoning Minimum Yards Maximum Lot Coverage Maximum Floor Area Ratio (FAR) Maximum Height Limit (ft) Density Units Per Acre Low Density Residential R-1 As authorized by Section 29.40.405 50% N/A 30 feet 0-5 Medium Density Residential R-1D, R-D, and R-M As authorized by Section 29.40.405, 29.40.530, and 29.40.645 75% N/A 35 feet 14-22 or 5-12 in Very High Fire Hazard Severity Zones High Density Residential R-M As authorized by Section 29.40.645 75% N/A 45 feet 30-40 Mixed-Use CH As authorized by Section 29.60.435 N/A 3.0 45 feet 30-40 Neighborhood Commercial C-1 As authorized by Section 29.60.225 N/A 1.0 35 feet 10-20 Central Business District C-2 As authorized by Section 29.60.335 N/A 2.0 45 feet 20-30 North Forty Specific Plan NF-SP As defined in Specific Plan As defined in Specific Plan As defined in Specific Plan As defined in Specific Plan As defined in Specific Plan EXHIBIT 9 Page 2 of 2 Office Professional O As authorized by Section 29.60.100 N/A 1.0 35 feet 10-20 Service Commercial LM As authorized by Section 29.70.125 N/A 1.0 35 feet none Light Industrial CM As authorized by Section 29.70.235 N/A 1.0 35 feet none