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Staff Report PREPARED BY: JENNIFER ARMER Associate Planner Reviewed by: Town Manager, Town Attorney, Community Development Department Director, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 09/19/2017 ITEM NO: 13 DATE: SEPTEMBER 12, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: PLANNED DEVELOPMENT APPLICATION PD-14-002, MITIGATED NEGATIVE DECLARATION ND-16-002. PROJECT LOCATION: 105 NEWELL AVENUE. PROPERTY OWNER: TANGO PAPPA. APPLICANT: CAMARGO & ASSOCIATES ARCHITECTS. A. CONSIDER ADOPTION OF A MITIGATED NEGATIVE DECLARATION AND ADOPTION OF A MITIGATION MONITORING AND REPORTING PROGRAM. B. REQUEST FOR A PLANNED DEVELOPMENT TO REZONE A PROPERTY FROM R-1:12 TO R-1:12:PD, TO ALLOW FOR THE DEMOLITION OF AN EXISTING BUILDING, SUBDIVISION OF ONE LOT INTO FOUR, AND CONSTRUCTION OF FOUR NEW SINGLE-FAMILY RESIDENCES ON PROPERTY ZONED R-1:12. APN 409-24-026. RECOMMENDATION: It is recommended that the Town Council accept the Planning Commission’s recommendation and adopt the Final Mitigated Negative Declaration (Attachment 1, Exhibit 13) and Mitigation Monitoring Reporting Program (Attachment 1, Exhibit 14) and adopt an Ordinance (Attachment 8) approving the Planned Development application. BACKGROUND: Los Gatos Elks Lodge previously occupied the subject 1.4-acre site. The site contains a building and paved parking lot that covers the majority of the site. The site is accessed by a driveway at the northeast corner of the site at the Winchester Boulevard and Newell Avenue intersection. The site also contains 38 protected trees. PAGE 2 OF 7 SUBJECT: 105 NEWELL AVENUE/PD-14-002/ND-16-002 SEPTEMBER 12, 2017 S:\COUNCIL REPORTS\2017\09-19-17\105 Newell PD\Staff Report - 105 Newell Final.docx 9/14/2017 1:47 PM BACKGROUND (Continued): The applicant presented development proposals for the subject site to the Conceptual Development Advisory Committee (CDAC) on December 11, 2013. Summary minutes of the CDAC meeting are attached (Attachment 1, Exhibit 4). An Initial Study/Mitigated Negative Declaration (IS/MND) (previously distributed under separate cover on June 10, 2016), Responses to Comments (Attachment 1, Exhibit 12), and a Mitigation Monitoring and Reporting Program (Attachment 1, Exhibit 14) have been prepared for the project. A Final MND (Attachment 1, Exhibit 13) was prepared to show minor changes in response to comments that were received. Mitigation measures have been incorporated into the performance standards within the proposed Planned Development (PD) Ordinance (Attachment 8). The Planning Commission considered the applications on September 14, 2016. The applications were continued to a date uncertain to allow the applicant time to address staff’s previous technical comments and concerns. The application was brought back to the Planning Commission on August 19, 2017. The Commission forwarded a recommendation for approval to the Town Council as discussed in more detail in this report. The Council is the final deciding body for the PD application. If the PD is approved, future required applications would include Subdivision (including installation of roadway improvements and recordation of easements), and Architecture and Site (A&S) applications for each new building. All of these subsequent applications would need to be approved and other Town requirements satisfied prior to construction. DISCUSSION: A. Project Summary The applicant is proposing a PD to rezone the subject site from R-1:12 to R-1:12:PD to allow for the demolition of an existing building, subdivision of one lot into four lots, installation of a new private roadway, construction of four new single-family homes, and removal of 36 trees. The proposed PD would allow the 1.4-acre site to be subdivided into four lots ranging from 13,115 square feet to 16,287 square feet. An easement would provide for the construction of a private street to access the new lots from Newell Avenue. The applicant’s proposal would require the following exceptions: PAGE 3 OF 7 SUBJECT: 105 NEWELL AVENUE/PD-14-002/ND-16-002 SEPTEMBER 12, 2017 S:\COUNCIL REPORTS\2017\09-19-17\105 Newell PD\Staff Report - 105 Newell Final.docx 9/14/2017 1:47 PM DISCUSSION (Continued):  Floor area exception for Lots 1 and 4;  Cut and fill depth exceeding the maximum allowed by the Hillside Development Standards & Guidelines (HDS&G) for lots with greater than 10 percent slope; and  Retaining walls running in a straight continuous direction for more than 50 feet without a break, offset, or planting pocket. B. Planning Commission On September 14, 2016, and August 9, 2017, the Planning Commission considered the subject application and received public comment (Attachments 2 and 4 include the verbatim minutes). Staff recommended denial of the project to the Planning Commission because it did not meet the maximum floor area requirement of the underlying zoning, nor applicable sections of the HDS&G, as discussed in Attachments 1 and 3. On August 9, 2017, the Commission voted 4-2 (Commissioners Kane and Badame opposed, Commissioner Hudes absent) to recommend approval of the PD with the following comments and modifications:  Reduce the size of the houses on Lots 1 and 4 to below the Town Code’s maximum floor area requirement;  Limit the house proposed on Lot 4 to one story;  Allow the long continuous retaining wall design, shown in the plans in the August 9, 2017, Staff Report (Attachment 3, Exhibit 17);  Limit all the house sizes to no larger than currently proposed; and  Reduce all of the house sizes to be more in line with the neighborhood as described in the September 14, 2016, Staff Report. In addition, the Commissioners expressed concerns regarding:  Conformance with the Housing Element;  Appearance of how the houses will look after their redesign; and  Conformance with the objectives of the PD Overlay. Staff has prepared a revised Draft Planned Development Ordinance (Attachment 8) which incorporates the Commission’s recommendations with four new performance measures: 5. RETAINING WALL DESIGN: Retaining wall height and placement shall be in substantial conformance with the Development Plans in Exhibit B. 6. MAXIMUM HEIGHT: The house on Lot 4, on the corner of Newell Avenue and Winchester Boulevard, shall be no more than one story above grade. PAGE 4 OF 7 SUBJECT: 105 NEWELL AVENUE/PD-14-002/ND-16-002 SEPTEMBER 12, 2017 S:\COUNCIL REPORTS\2017\09-19-17\105 Newell PD\Staff Report - 105 Newell Final.docx 9/14/2017 1:47 PM DISCUSSION (Continued): 7. MAXIMUM HOUSE FLOOR AREA:  Lot 1 (on Newell Avenue): House Floor Area shall not exceed 2,914 square feet.  Lot 2 (interior lot): House Floor Area shall not exceed 2,932 square feet.  Lot 3 (on Winchester Boulevard): House Floor Area shall not exceed 2,605 square feet.  Lot 4 (corner of Newell Avenue and Winchester Boulevard): House Floor Area shall not exceed 2,361 square feet. 8. MAXIMUM GARAGE FLOOR AREA:  Lot 1 (on Newell Avenue): Garage Floor Area shall not exceed 648 square feet.  Lot 2 (interior lot): Garage Floor Area shall not exceed 651 square feet.  Lot 3 (on Winchester Boulevard): Garage Floor Area shall not exceed 5 79 square feet.  Lot 4 (corner of Newell Avenue and Winchester Boulevard): Garage Floor Area shall not exceed 525 square feet. Performance measures 6, 7 and 8 were developed based on the Planning Commission’s direction to limit the houses on Lots 1 and 4 to below the Town Code’s maximum floor area requirement, and to limit all of the house sizes to a floor area more in line with the neighborhood as described in the September 14, 2016, Staff Report (Attachment 1). That report included the following table: Neighborhood Analysis Address House SF Garage SF Lot Size SF House FAR 108 Newell 1,973 399 12,880 0.15 112 Newell 1,809 420 12,317 0.15 116 Newell 1,885 420 12,075 0.16 135 Newell 2,467 528 12,019 0.21 119 Newell 2,128 468 11,445 0.19 115 Newell 2,153 576 11,615 0.19 183 Newell 1,890 563 12,600 0.15 100 Brocastle 2,523 525 11,300 0.22 The average house FAR in the immediate neighborhood is 0.18 and the average garage FAR is 0.04. Applying these FARs as maximums on the proposed lots would reduce the houses on Lots 1 and 4 to below the Town Code’s maximum floor area requirement, and would result in the following maximum house sizes and house size reductions: PAGE 5 OF 7 SUBJECT: 105 NEWELL AVENUE/PD-14-002/ND-16-002 SEPTEMBER 12, 2017 S:\COUNCIL REPORTS\2017\09-19-17\105 Newell PD\Staff Report - 105 Newell Final.docx 9/14/2017 1:47 PM DISCUSSION (Continued): Reduction in Maximum House Sizes Lot 1 Lot 2 Lot 3 Lot 4 Total Gross Lot Area 16,189 16,287 14,472 13,115 60,063 Maximum Allowed Floor Area: House Floor Area 3,336 4,230 3,695 2,861 14,122 Garage Floor Area 919 1,114 1,004 799 3,835 Total Floor Area 4,255 5,344 5,699 3,660 17,957 Applicant Proposed Floor Area: House Floor Area 3,592 3,758 3,478 3,218 14,046 Garage Floor Area 751 687 753 710 2,901 Total Floor Area 4,343 4,445 4,231 3,928 16,947 Reduced FAR: House Floor Area (0.18 FAR) 2,914 2,932 2,605 2,361 10,812 Garage Floor Area (0.04 FAR) 648 651 579 525 2,403 Total Floor Area 3,578 3,600 3,198 2,899 13,275 Reduction (From Proposed): House Floor Area 678 826 873 857 3,234 Garage Floor Area 103 36 174 185 498 Total Floor Area 781 862 1,047 1,042 3,732 To provide clarity in future implementation of the PD regulations, staff is recommending that the performance standards include a specific maximum floor area for each lot as described above and shown in the reduced FAR contained in this table. C. Applicant’s Response Based on the public testimony and comments from the Planning Commissioners received at the Planning Commission hearing, the applicant has provided additional information for Town Council consideration (Attachment 5). The applicant’s response includes a narrative on the history of the project, a description of existing conditions, a response to the Planning Commission’s proposed conditions, and justification of proposed house sizes and neighborhood context. CONCLUSION: The Planning Commission recommended approval of the proposed rezoning with modifications, expressing concerns particularly about the proposed house sizes as discussed above. PAGE 6 OF 7 SUBJECT: 105 NEWELL AVENUE/PD-14-002/ND-16-002 SEPTEMBER 12, 2017 S:\COUNCIL REPORTS\2017\09-19-17\105 Newell PD\Staff Report - 105 Newell Final.docx 9/14/2017 1:47 PM Conclusion (Continued): It is recommended that the Town Council accept the Planning Commission’s recommendation and approve the application with modifications by taking the following actions: 1. Find that no significant impacts are associated with the application and adopt the Final Mitigated Negative Declaration (Attachment 1, Exhibit 13) and the Mitigation Monitoring and Reporting Program (Attachment 1, Exhibit 14); 2. Make the required finding that the zone change is internally consistent with the General Plan and its elements (Attachment 7); 3. Make the required finding that the project, as conditioned, is in compliance with the Residential Design Guidelines (Attachment 7); 4. Make the required finding that the project is in compliance with the applicable sections of the Hillside Development Standards and Guidelines (Attachment 7); 5. Make the required finding that the project is consistent with the Town’s Housing Element (Attachment 7); 6. Approve the application (PD-14-002) subject to the performance standards and development plans included in the Ordinance (Attachment 8), or as otherwise modified by the Town Council; 7. Waive the reading of the Ordinance and ask the Clerk Administrator to read the title of the proposed Ordinance; and 8. Introduce the Ordinance effecting the zone change. ALTERNATIVES: Alternatively, the Council may: 1. Deny the application; or 2. Approve the proposed application with modifications and/or additiona l performance standards; or 3. Continue the application to a date certain with specific direction; or 4. Remand the project to the Planning Commission with specific direction. COORDINATION: The Community Development Department coordinated with the Parks and Public Works Department, and the Santa Clara County Fire Department in the review of the project. PAGE 7 OF 7 SUBJECT: 105 NEWELL AVENUE/PD-14-002/ND-16-002 SEPTEMBER 12, 2017 S:\COUNCIL REPORTS\2017\09-19-17\105 Newell PD\Staff Report - 105 Newell Final.docx 9/14/2017 1:47 PM ENVIRONMENTAL ASSESSMENT: An Initial Study and Mitigated Negative Declaration (IS/MND) have been prepared for the project by the Town’s Environmental Consultant, Kimley-Horn and Associates (available online at www.losgatosca.gov/105Newell). The 20-day public review period began on June 10, 2016 and ended on June 30, 2016. Mitigation measures are required for Air Quality, Cultural Resources, Geology and Soils, Noise, and Traffic. The Mitigation Monitoring and Reporting Program is provided along with the Final MND and response to comments within Attachment 1, Exhibits 12, 13, and 14. The Final MND was prepared to show minor changes in response to comments and does not require recirculation. Mitigation measures have been incorporated into the performance standards within the proposed PD Ordinance (Attachment 8). Attachments: Previously received under separate cover: Initial Study and Mitigated Negative Declaration, received June 10, 2016 Attachments received with this Staff Report: 1. September 14, 2016 Planning Commission Staff Report (with Exhibits 2-15, Exhibit 1 was previously distributed under separate cover on June 10, 2016) 2. September 14, 2016 Planning Commission Verbatim Minutes (50 pages) 3. August 9, 2017 Planning Commission Staff Report (with Exhibit 16-17) 4. August 9, 2017 Planning Commission Verbatim Minutes (61 pages) 5. Letter from Applicant, received August 21, 2017 (4 pages) 6. Public Comments received by 11:00 a.m., Thursday, September 14, 2017 7. Required Findings (one page) 8. Draft Ordinance (27 pages) with Exhibit A Rezone Area (one page) and Exhibit B Development Plans (24 pages) Distribution: Maurice Camargo, AIA, Architect, 3953 Yolo Dr, San Jose, CA 95136 Tango Papa Development Co., Attn: Michael Freisen, P.O. BOX 1701, Los Altos, CA 94023