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Staff Report with Exhibit 1.110 Wood Road PREPARED BY: SEAN MULLIN, AICP Senior Planner Reviewed by: Planning Manager and Community Development Director 110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832 www.losgatosca.gov TOWN OF LOS GATOS PLANNING COMMISSION REPORT MEETING DATE: 10/25/2023 ITEM NO: 3 DATE: October 20, 2023 TO: Planning Commission FROM: Joel Paulson, Community Development Director SUBJECT: Study Session to Discuss Revisions to a Previously Considered Project Requesting Approval of a Planned Development for a Senior Living Community, Removal of Large Protected Trees, and Site Improvements Requiring a Grading Permit on Property Zoned R:PD. Located at 110 Wood Road. APN 510-47-038. An Environmental Impact Report (EIR) and Mitigation Monitoring and Reporting Program Have Been Prepared for this Project. Planned Development Application PD-20-001 and Environmental Impact Report EIR-21-002. Applicant: Frank Rockwood. Property Owner: Covia Communities. Project Planner: Sean Mullin. RECOMMENDATION: Conduct a study session to discuss and provide feedback on revisions to a previously considered project requesting a Planned Development (PD) for a senior living community, removal of large protected trees, and site improvements requiring a grading permit on property Zoned R:PD, located at 110 Wood Road. BACKGROUND: The subject site is approximately 10.84 acres consisting of two underlying parcels at the intersection of Wood Road and South Santa Cruz Avenue. The site has been occupied by the Los Gatos Meadows since 1971, a senior living development approved under a PD ordinance in 1968. On April 9, 2008, the Conceptual Development Advisory Committee (CDAC) reviewed a preliminary proposal for redevelopment of the subject property. The staff report and minutes of the CDAC meeting are available at www.losgatosca.gov/110WoodRoad. In February 2019, the Los Gatos Meadows facility initiated a month’s long closure and transition process to relocate all residents. By September 2019, the facility was vacant. While the BACKGROUND (continued): PAGE 2 OF 4 SUBJECT: 110 Wood Road/ PD-20-001 AND EIR-21-002 DATE: October 20, 2023 property owner, Covia Communities, has completed the closure process, the property continues to be staffed to provide on-going maintenance and to ensure security of the property. On February 12, 2020, an application was filed by Frank Rockwood of Rockwood Pacific requesting a new PD zoning for the property for the purpose of building a new senior living community. The existing zoning is Residential, Planned Development (R:PD) and the General Plan Land Use designation is Medium Density Residential. A Draft Environmental Impact Report (EIR) for the project was prepared and circulated for a 45 - day public review period from May 28, 2021, through July 12, 2021. The Final EIR, which includes the Response to Comments, was distributed on September 3, 2021 . These environmental documents are available at www.losgatosca.gov/110WoodRoad. On January 12, 2022, the Planning Commission considered the application and forwarded a recommendation of denial to the Council based on the following concerns: • Building heights; • Tree removal; • Lack of diversity in housing types; • Concentration of luxury housing units; and • Ratio of the number of units (fewer than existing) to the overall height (greater than existing). Additionally, the Planning Commission voted not to certify the Final EIR because it is based on a project that the Planning Commission found to be inappropriate, and environmental review is not required for denial of a project. The Planning Commission staff reports and meeting minutes are available at www.losgatosca.gov/110WoodRoad. On April 5, 2022, The Town Council considered the application and several options presented by the applicant developed to respond to the concerns expressed by the Planning Commission. Following public comment and Council discussion, the application was remanded back to the Planning Commission for further discussion with consideration of comments provided by the Town Council. The Town Council comments included, but are not limited to, the following: • Concern with proposed building heights, tall wall plains, and lack of screening; • Appreciative of applicant’s regard for fire safety; • Preference for Options A and B; • Support removal of penthouse units; PAGE 3 OF 4 SUBJECT: 110 Wood Road/ PD-20-001 AND EIR-21-002 DATE: October 20, 2023 BACKGROUND (continued): • Not supportive of removing parking to reduce grading; and • Provide full set of drawings and details of revised project. The Town Council staff reports and meeting minutes are available at www.losgatosca.gov/110WoodRoad. DISCUSSION: The applicant requested the opportunity to present to the Planning Commission a revised submittal in a conceptual fashion prior to submitting a revised full submittal (Exhibit 1). The purpose of this study session is to review and provide input to the applicant on the revised submittal as described in the applicant’s letter. The Planning Commission should consider whether the revised submittal adequately responds to the comments and concerns expressed by the Planning Commission and Town Council on January 12, 2022, and April 5, 2022, respectively. The revised submittal described in the applicant’s letter (Exhibit 1) pulls back the upper floors of the front portion of Villa A and adds a sixth floor to the rear portion of Villa A. Additionally, the revised submittal removes the top floors of Villas B and C and adds a floor to Villas E, F, and G. These revisions would push the taller building mass to the rear/uphill portions of the site and reduce building mass at the front/downhill portions of the site. As a result, the maximum building heights of Villas A (rear), E, F, and G would increase by 11.5 feet. Maximum building heights of Villas A (front), B and C would decrease by 11.5 feet. Maximum building heights of Villas D and H would be unchanged. The revised submittal includes changes in the number of units and unit types. Total continuing care units would increase from 174 to 186 units through elimination of the penthouse units and redistribution of the one- and two-bedroom units. Additionally, the number of supporting care units would increase from 17 to 24. Lastly, the revised submittal reduces grading off-haul by approximately 13,552 cubic yards by reducing the size of the parking garages. Total parking spaces, including tandem spaces, would be reduced from 200 to 181 parking spaces. CONCLUSION: Staff recommends that the Planning Commission conduct a study session to discuss and provide feedback on revisions to the previously considered project requesting a PD for a senior living community, removal of large protected trees, and site improvements requiring a grading permit on property Zoned R:PD located at 110 Wood Road. PAGE 4 OF 4 SUBJECT: 110 Wood Road/ PD-20-001 AND EIR-21-002 DATE: October 20, 2023 NEXT STEPS: Following this study session, the applicant will be asked to prepare a formal resubmittal for staff review prior to further consideration by the Planning Commission and Town Council. EXHIBITS: 1. Letter from Applicant, dated September 25, 2023 36 Southwood Drive | Orinda, California | 94563 www.RockwoodPacific.com September 25, 2023 Revised October 12, 2023 Sean Mullin Senior Planner Town of Los Gatos 110 E. Main St. Los Gatos, CA 95030 RE: Rebuild of Los Gatos Meadows Response to Feedback on the Current Submittal Dear Sean: We are submitting this letter with the intent (1) to provide the Town with an update on the status of the Los Gatos Meadows Rebuild Project (the “Project”) and, (2) to request an opportunity to preview our Project refinements with the Planning Commission, as further described herein. LOS GATOS MEADOWS REBUILD PROJECT STATUS UPDATE We recognize that it has been nearly 18 months since the Project was remanded back to the Planning Commission at the April 5, 2022 Town Council Meeting. We have not been sitting idle during this time. First and foremost, the project team has been studying a range of refinements to our current formal proposal dated July 21, 2021 (the “Current Submittal”) that specifically address concerns that were raised on January 12, 2022 by the Planning Commission and on April 5, 2022 by the Town Council. These refinements are discussed in the body of this letter, as well as visually depicted in the attached appendices. Prior to submitting an updated proposal, we are requesting an opportunity to preview these refinements with the Planning Commission with the expectation of seeking their input. We are not requesting that the Planning Commission take any actions, other than to provide their input on our proposed refinements. We anticipate resubmitting an updated proposal after this meeting (the “Revised Submittal”). Incidentally, note that since the submission of the Current Submittal, Covia (formerly Episcopal Senior Communities) became affiliated with Front Porch Communities and EXHIBIT 1 Page | 2 Services. While this transition occurred during our 2021/2022 planning review process, a key CEO leadership change resulted in the need to “pause” the Project until the new CEO was onboarded and brought up to speed on the Project. This transition was completed this April. Also, during this period, there was an extraordinary increase in construction pricing followed by a significant increase in interest rates requiring a thorough re-evaluation of the financial feasibility of the project. Fortunately, the results of the re-evaluation are favorable. It is with renewed enthusiasm and unequivocal commitment that we offer the following project refinements to the Planning Commission for review and consideration. PROPOSED REFINEMENTS The Tradeoff Between Height/Massing versus Housing The primary theme of comments made by the Planning Commission and the Town Council related to the height/massing of our proposed project. Based on our extensive market analysis (updated just recently), we believe that the demand for the type of senior housing with services we are proposing is deep and would justify a project with many more units than currently proposed. However, we also appreciate that the Current Submittal has the potential to create a few limited impacts on public views. While we have studied a broad array of responses to the range of issues raised, our primary focus has been on exploring opportunities to mitigate the visual impacts without compromising our goal to replace as many of the prior units as practical, all while maintaining the level of services and amenities to make this project an asset to the broader Los Gatos community. Re-Allocation of Height and Massing The Current Submittal was developed with a sensitivity to a range of impacts, including visual impacts. However, we understand that there are particularly high sensitivities to Villa B, Villa C and the front portion of Villa A. Conversely, as revealed by the installation of the story poles, there is less of a visual impact from Villa E, Villa F, Villa G and the rear portion of Villa A. Accordingly, we are contemplating a resubmittal that effectively reallocates the massing from Villas B and C to Villas E, F and G and from the front portion of Villa A to the rear portion of Villa A. The reallocation of massing effectively minimizes the visual impact from public viewsheds of Villas B, C and the front portion of Villa A. See Appendix A for additional details regarding this contemplated change. Change in Unit Mix Several comments made during the Planning Commission (but not the Town Council) meeting questioned the “luxury” positioning of the proposed project. To be clear, it is our objective to rebuild Los Gatos Meadows as a beautiful community. The proposed use and proposed target positioning of the current application does not differ from our original entitlement application secured in the late 1960s. What has changed are the expectations for senior living accommodations that have evolved markedly over the past half-century. The preferences and expectations of people born in the later part of the 1800s (the intended Page | 3 age cohort of the original design) differ greatly from those of the boomer generation and beyond. The unit sizes and unit mix of the proposed project are based on focus group studies with local residents and decades of Front Porch’s experience providing similar services to thousands of older adults. A project positioning that is not in alignment with the market is not feasible. We believe our Current Submittal aligns well with current local and market preferences. However, because this was such an important consideration of the Planning Commission, we are contemplating adjustments to the proposed unit mix that would eliminate the five top-story penthouse units entirely and would modestly reduce the average unit size. See Appendix B for additional details regarding the contemplated adjustment to the unit mix. Reduction in Net Off-Haul Meeting the operational needs for the former Los Gatos Meadows site required the use of numerous surface parking spaces as well as extensive use of off-site public and private parking that compromised fire department access. Resolving this has been a major priority of our planning efforts. In response to CDAC’s recommendation, our rebuild proposal incorporated a substantial increase in the number of below grade parking spaces that would necessitate a substantial volume of soil off-hauls. We believe our Current Submittal balances the trade-off between parking needs and other factors such as volume of soil removed, off-haul impacts, visual impacts, fire access and tree removal impacts. However, based on concerns expressed by the Planning Commission with respect to off- haul impacts, we are contemplating an approximate ten percent reduction in the number of parking spaces and the volume of soil to be removed. See Appendix C for additional details regarding this contemplated reduction in parking area. Community Benefit Our Justification Letter of January 6, 2022 addresses community benefits related to human services, town integration, improved on-site circulation, enhanced fire access, enhanced emergency access, improved vehicle and bicycle safety, reduction of vehicle trips, and energy and healthy environment improvements (See Section V of the Justification Letter of January 6, 2022). The new community will provide an appealing and inviting place for people to continue to live in Los Gatos while not being burdened or isolated by home ownership. This transition allows for desired housing to open up and attract new families to the area to participate in schools and civic life. In addition to the onsite community benefits previously identified, Front Porch is seeking opportunities to leverage its existing capabilities to provide services to the broader Page | 4 community. To that end, Front Porch has recently entered into a purchase and sale agreement for the acquisition of 142 S. Santa Cruz and currently expects to close on the acquisition of this property shortly. Although this property is separate and apart from the Los Gatos Meadows project, Front Porch is contemplating utilizing this property as a hub of wellness, education, and engagement services for seniors in the broader community. Candidate services include expansion and/or support of existing Front Porch community services offerings such as Home Match, Creative Spark, Well Connected, Social Call, along with technology pilots and research through the Front Porch Center for Innovation and Wellbeing. See Appendix D for additional information on these Front Porch Programs. Furthermore, we intend to also explore new potential offerings such as care navigation support, enhanced health support offering in partnership with a health system, an option similar to a Program of All-Inclusive Care for the Elderly (PACE), virtual health, health and nutrition education, home technology demonstration and support, and home modification support. We anticipate a highly synergistic relationship between the two properties, thus expanding and enhancing the community benefits associated with our stand-alone Project. Through the new community and the services offered at 142 S. Santa Cruz, Front Porch will be participating actively in the life of an age-friendly Los Gatos, supporting and aligning with many of the goals of the Senior Services Roadmap adopted by the Town Council this past summer. It will take additional time to determine the appropriate programming for this building, but the intent would be to offer services consistent with the current applicable land use restrictions for the property. EIR and Project Description It is our intent to avoid the need to materially reassess any of the impacts assessed during the preparation of the draft EIR. The Revised Submittal is expected to require a similar level of staffing and only a modest increase in the number of residents in comparison to the Current Submittal. See Appendix E for a redline of excerpts of the Project Description from the Draft EIR (for ease of review by the Town’s EIR Consultant). Page | 5 * * * Our current project team began our journey to rebuild Los Gatos Meadows five years ago and along the way we have had the opportunity to communicate with numerous neighbors, business leaders, community leaders and stakeholders. This project represents the culmination of their hard work and participation in our community process. We appreciate the comments provided by members of the public, the Planning Commission and Town Council. Subject to the caveat that there are multiple, and in some cases conflicting, goals and varying degrees of concern for the applicable range of issues, our Revised Submittal is intended to be responsive to this feedback. We look forward to continuing to work with you and the community in providing the residents of Los Gatos with a markedly improved, beautiful and safer version of Los Gatos Meadows. Respectfully, ___________________________________ Francesco J. Rockwood Rockwood Pacific Inc. (Applicant) On behalf of Front Porch Communities and Services (Owner) c: Chris Ichien, Divisional Vice President of Operations, Front Porch Communities and Services Attachments regarding Contemplated Resubmittal Appendix A – Reallocation of Height and Massing Appendix B – Change in Unit Mix Appendix C – Reduction in Net Off-Haul Appendix D – Overview of Front Porch Community Services Appendix E – Redline of Excerpts from Draft EIR Project Description Appendix A – Reallocation of Height and Massing For the Revised Submtital, we are proposing to make changes to the height and massing of Villas A, B, C, E, F and G (see areas outlined in blue in Figure 1). Figure 1: Number of Levels | Units on Top Level | Current Submittal More specifically, we are proposing to reduce the height of Villa B and Villa C by one floor and to lower the front portion of Villa A (see areas outlined in green in Figure 2) and to effectively reallocate this massing by adding a floor to Villa E, Villa F, and Villa G and to increase the back portion of Villa A (see areas outlined in red in Figure 2). Figure 2: Number of Levels | Units on Top Level | Revised Submittal Appendix A – Reallocation of Height and Massing Figure 3 summarizes the change in building heights of the Revised Proposal in comparison to the existing improvements. Note the numerical figures indicate difference in height between Revised Submittal and existing improvements. Figure 3: Height Comparison – Revised Submittal v. Existing Improvements See Figure 4 for a summary of the number of units, gross square feet and maximum height of the Revised Proposal in comparison to the Current Submittal. Note that height figures are in comparison to ground level (+488’ above sea level). Figure 4: Summary of Units, Gross Square Feet and Maximum Height Units GSF Height Units GSF Height Villa A 46 157,054 85.5 50 157,179 97.0 Villa B 20 41,483 70.5 18 26,862 59.0 Villa C 29 56,891 81.5 23 40,461 70.0 Villa D 15 31,426 70.5 15 31,518 70.5 Villa E 18 40,712 82.0 23 48,643 93.5 Villa F 17 40,712 82.0 22 48,643 93.5 Villa G 14 31,426 70.5 18 39,689 82.0 Villa H 15 31,112 59.0 17 28,206 59.0 Total 174 430,816 186 421,201 Revised Submittal Current Submittal Appendix A – Reallocation of Height and Massing Figures 5 and 6 provide additional plan view and section details regarding the contemplated changes to Villa A. Figure 5: Plan View of Villa A | Revised Submittal Revised Submittal – Building A 3F Revised Submittal – Building A 4F Revised Submittal – Building A 5F Revised Submittal – Building A 6F Appendix A – Reallocation of Height and Massing Figure 6: Section View of Villa A | Revised Submittal Appendix A – Reallocation of Height and Massing Figures 7 and 8 are axiometic views of the the Current Submittal and the Revised Submittal. Note that in the Revised Submittal, proposed reduction in heights in shown in green and proposed inceases in height are shown in red. Figure 7: Axiometric View | Current Submittal Figure 8: Axiometric View | Revised Submittal Appendix B – Change in Unit Mix Figure 1 below shows the unit count in the current proposal as compared to the revised mix resulting from the reduction of units in Villas A, B and C as well as the division of units in Villas B, E, F and H. Figure 1 – Unit Mix Comparison Current Submittal Revised Submittal Totals Totals Avg Area in SF Unit Count Total SF of Units Avg Area in SF Unit Count Total SF of Units 1 Bedroom 1,067 9 1,011 19 1 Bed/Den 1,248 48 1,231 54 2 Bedroom 1,531 66 1,498 70 2 Bed Den 1,693 46 1,703 43 Penthouse 2,267 5 TOTALS 1,493 174 259,744 1,414 186 264,667 Appendix C – Reduction in Net Off-Haul Reductions to the parking garage were studied in order to reduce the hillside excavation and off- haul quantities. Figure 2 shows the lower-level garage reduced by the area highlighted in red, reducing parking by fifteen spaces in order to eliminate approximately 10,600 CY of off-haul (per Figure 1). Figure 3 shows the ground floor parking garage reduced by the area highlighted in red, reducing parking by four spaces and eliminating approximately 2,800 CY of off haul (per Figure 1). As a result, total parking spaces would decrease from 200 parking spaces to 181 parking spaces. Standard parking spaces would remain at required the 77 standard parking spaces. The 15 regular non-tandem parking spaces lost on the lower level that are part of the required 77 spaces will be replaced with 15 additional, designated non-tandem spaces on the ground level to maintain these 77 spaces. Prior to closure of the existing Los Gatos Meadows community, Front Porch provided valet attendants that were available from 8AM and 5PM and had posted a phone number for valet services requested outside those hours. Front Porch intends to continue providing a similar valet service. Figure 1: Off-haul Analysis Appendix C – Reduction in Net Off-Haul Figure 2: Lower-Level Garage Floor Reduction | Revised Submittal Figure 3: Ground Floor Garage Reduction | Revised Submittal Appendix D –Overview of Front Porch Community Services About Front Porch Proudly non-profit, Front Porch is dedicated to inspiring the spirit of community. From senior communities to affordable housing to important Community Services that reach beyond our walls, we support residents and older people nationwide. Front Porch by the numbers ... 3,690 residents in senior living and active adult communities in California, Louisiana and Florida. 3,400 residents in affordable housing communities in California and Arizona, where coordinators help residents access entitlement programs and local services. 420 residents in skilled nursing care centers, with 57% receiving assistance through Medi-Cal. 2,790 employees proudly serve residents and participants. 16,000 participants nationwide through Community Services. $1.5 mil contributed last year through its philanthropic foundation, Front Porch Communities Foundation, to subsidize or pay monthly accommodation fees for long-term residents with limited assets. Front Porch community volunteering initiatives ... • Clean beaches • Knit hats for newborns • Collect toys • Serve meals to first responders • Create stuffed animals for children • Assist in schools • Sew dresses for underprivileged girls • Pack produce for food banks • Fundraise for medical research • Donate to animal rights causes, education, medical services and other social services • Support veterans by fostering opportunities to gather and share experiences Front Porch Community Services ... Home Match has connected 351 older people who have space in their homes with community members seeking affordable housing in the Bay Area. Market Day hosts weekly farmers markets in neighborhoods, senior centers and affordable housing communities, serving 1,076 shoppers, subsidizing the cost of 85,844 pounds of produce and processing 1,472 EBT transactions in the past year. Ruth’s Table provides older people and those with disabilities an environment for creative exploration both online and in person in the Bay Area. Creative Spark, a professional development program, in the past year, hosted 68 activities with 1,935 participants, fostering a better level of care for older people throughout California. Creative Aging Symposium inspires hundreds of residents and other participants to find paths to rediscovery in conversation with innovative thinkers, musicians, artists, writers and scholars. Well Connected brings together older people throughout the United States for classes, activities, conversations and support groups by phone or online every day of the year - 85% of participants feel more socially connected. Social Call fosters friendships for more than 1,000 older people and volunteers across the United States through one-on-one, weekly virtual visits. Front Porch Center for Innovation and Wellbeing fosters connection and wellness by providing the technology and playbook to remotely attend to the needs of residents living in affordable housing communities who experience depression, anxiety and loneliness. FY 22/23 Appendix E – Redline of Excerpts from Draft EIR Project Description Proposed Improvements Senior Living Community The proposed project involves the redevelopment of the site with a state-of-the-art senior living community that would replace the existing Los Gatos Meadows senior living community. Figure 4-1, Site Plan, presents the proposed redevelopment of the property. The project includes the construction of eight, three- to five-story buildings rising from a grade level base containing the main building entry and reception, health center, and garage. Building heights would vary between 59 feet and 85.597 feet, with residential villas varying between three and five stories. The project would include 174 186 independent residential apartments totaling 334,574 357,147 square feet with 57 73 one-bedroom apartments and 117 113 two-bedroom apartments. The project would include a 20,588 20,775 square foot health center with 17 24 supporting care units specializing in assisted living care, memory care and/or respite care. In addition, the project would consist of 35,429 square feet of total amenity space (including fitness and dining areas) and 35,280 square feet for back of house and mechanical space. The project would include 91,827 83,330 square feet of parking space, with 77 standard parking spaces in the new structure. Table 4-2, Summary of Proposed Buildings, provides a summary of the proposed buildings, including all service and amenity areas. Table 4-2 Summary of Proposed Buildings Building # of Apartments Gross Square Footage (SF) Building Heights2 A 46 50 157,0541 157,179 85.597 B 20 18 41,483 26,862 70.559 C 29 23 56,891 40,461 81.5 70 D 15 31,426 31,518 70.5 E 18 23 40,712 48,643 82 93.5 F 17 22 40,712 48,643 82 93.5 G 14 18 31,426 39.689 70.5 82 H 15 17 31,112 28,206 59 Source: Rockwood Pacific 2020 Note: 1. Building A GSF includes service spaces on Level G including entry/reception, fitness area, health center and several back of house areas. 2. Finished building height dimensions are to ground level (+488’). Site improvements would include on-site amenity areas, parking, new landscaping, and a variety of energy efficient and sustainable interior and exterior building elements. Parking for residents, staff, and visitors would be provided within a new structure which would include 77 standard, non-tandem parking spaces of which approximately 30 16 would be near the garage entrance and the balance on the main parking level. The property owner has indicated they would be able to increase the parking capacity to 229 181 spaces by implementing a valet parking service. Site improvements would require demolition of all existing site improvements. The project is anticipated to be built over a period of approximately 26 to 30 months. Demolition of the existing improvements is expected to require approximately four (4) months. Appendix E – Redline of Excerpts from Draft EIR Project Description Construction Phasing The project is anticipated to be built over a period of approximately 26 to 30 months. Demolition of the existing improvements is expected to require approximately four (4) months. Population and Employment Table 4-4 Approximate Population Projection Unit Type Number of Units Population Rate1 Total Residents 1 Bedroom 57 73 1.1 63 80 2 Bedroom 112 113 1.3 146 147 Penthouse (2 Bedroom) 50 1.3 70 Independent Residential Unit Subtotal 174 186 216 227 Supporting Care Units 17 24 1.0 17 24 Grand Total 191 210 233 251 SOURCE: Kimley-Horn 2021; Covia 2021 NOTE: 1. Population rates based on actual population in Covia facilities and are similar to number of residents previously housed at the Los Gatos Meadows facility. These rates are subject to minor fluctuations. According to the applicant-prepared Letter of Justification: Rebuild Los Gatos Meadows (dated June 30, 2020), an estimated 120 full-time equivalent employees would be anticipated with the proposed project. This is commensurate to the number of employees on-site prior to the closure of the existing facility in September 2019.