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1pS�p,�pS COUNCIL AGENDA REPORT
DATE: JANUARY 9, 2013
TO: MAYOR AND TOWN COUNCIL Oq
FROM: GREG LARSON, TOWN MANAGER
MEETING DATE: 1/22/13
ITEM NO: C
SUBJECT: ZONING CODE AMENDMENT A -12 -003: GENERAL PLAN AMENDMENT
GP -12 -004. APPLICANT: TOWN OF LOS GATOS.
A. CONSIDER A REQUEST FOR APPROVAL TO AMEND THE TOWN
CODE TO INCORPORATE THE AFFORDABLE HOUSING OVERLAY
INTO DIVISION 5, TO ARTICLE VIII OVERLAY ZONES AND
HISTORIC PRESERVATION CONSIDER A REQUEST FOR APPROVAL
OF A DEVELOPMENT AGREEMENT.
B. CONSIDER A REQUEST FOR APPROVAL TO CHANGE THE
GENERAL PLAN DESIGNATION OF THE PROPERTY LOCATED ON
THE NORTHWEST CORNER OF KNOWLES DRIVE AND CAPRI
DRIVE (APN 406 -28 -032) FROM PUBLIC TO OFFICE.
C. CONSIDER A REQUEST FOR APPROVAL TO ADOPT AHOZ DESIGN
GUIDELINES AND APPLICATION OF AN AFFORDABLE HOUSING
OVERLAY TO FIVE PROPERTIES GENERALLY LOCATED AT:
1. NORTHWEST CORNER OF KNOWLES DRIVE AND CAPRI DRIVE.
APN 406 -28 -032.
2. KNOWLES DRIVE EAST OF WINCHESTER BOULEVARD. APN
424 -32 -077.
3. WEST SIDE OF OKA ROAD, NORTH OF THE JEWISH
COMMUNITY CENTER. APN 424 -08 -074.
4. EAST SIDE OF OKA ROAD, SOUTH OF THE LOS GATOS SWIM
AND RACQUET CLUB. APN 424 -08 -057,
5. EAST SIDE OF OKA ROAD, EAST OF THE LANDMARK AND LOS
GATOS GARDENS APARTMENTS. APN 424 -08 -021.
D. CONSIDER ADOPTION OF THE ADDENDUM TO THE GENERAL
PLAN ENVIRONMENTAL IMPACT REPORT (EIR).
PREPARED BY: Wendie R. Rooney, Strategic Project Director
Reviewed by: _PM Assistant Town Manager Town Attorney Finance
N:\DEV\TC REPORTS\201MAHOZ.TC 1- 22- 13.Pinal.doex Reformatted: 5130/02
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: Zoning Code Amendment A -12- 002 /General Plan Amendment GP -12 -004
January 9, 2013
RECOMMENDATION:
After opening and closing the public hearing, and asking the Clerk Administrator to read the title
of the proposed ordinances, it is recommended the Town Council:
1. Accept the Planning Commission's findings and recommendations in the form of meeting
minutes (Attachment 3).
2. Adopt the Addendum to the General Plan Environmental Impact Report (EIR) (Exhibit 10 of
Attachment 1).
3. Adopt the Resolution amending the General Plan by re- designating property at 375 Knowles
and 14205 Capri Drives from Public -Quasi Public to Office Professional (Attachment 6).
4. Make the required finding that the proposed Zoning Code amendments are consistent with
the General Plan and its Elements (Attachment 4).
5. Introduce the Ordinance of the Town of Los Gatos effecting the Zoning Code amendment
(Attachment 5).
6. Make the required finding that the proposed Zoning Code Map amendments applying the
AHOZ designation are consistent with the General Plan and its Elements (Attachment 4).
7. Adopt the five ordinances applying the AHOZ to five sites listed in this report (Attachments
7 through 11).
8. Adopt the Resolution approving the Affordable Housing Overlay Zone Design Guidelines
(Attachment 12).
BACKGROUND:
The Town Council recently adopted the 2007 -14 Housing Element. California state law requires
local governments to include programs in the Housing Element to meet existing and projected
housing, including its share of the regional housing need, which is known as the Regional
Housing Needs Allocation (RHNA). The RHNA, which is mandated by State Housing Element
Law, is the projected regional need for housing (over an eight -year planning period) expressed as
the number of dwelling units that are allocated among four income categories required to meet
that need. While each jurisdiction within the state is required to plan for affordable housing, it is
not required to guarantee that the housing will be built. The jurisdiction's responsibility is to
plan for and ensure adequate opportunities for housing development on suitably zoned sites with
available infrastructure. The Town's adjusted 2007 -14 RHNA is 452 units in five income
categories, including extremely low, very low, low, moderate, and above moderate. Please see
the Santa Clara County 2012 Area Median Income, for the income limits for the categories
included in the AHOZ (Exhibit 14 of Attachment 1).
The key implementation program for meeting the RHNA in the Town and State approved 2007-
14 Housing Element is Action HOU -2.1. Action HOU -2.1 requires amendment of the Town
Code to include an Affordable Housing Overlay Zone (AHOZ). For the past year, the General
Plan Committee (GPC) has overseen the drafting of the AHOZ. The GPC completed its work on
the program in August 2012, and unanimously recommended approval of the AHOZ for five
specific sites and approval of the AHOZ Design Guidelines.
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MAYOR AND TOWN COUNCIL
SUBJECT: Zoning Code Amendment A -12- 002 /General Plan Amendment GP -12 -004
January 9, 2013
Lastly, with the recent sale of the former county property at 375 Knowles and 14205 Capri
Drives and the termination of the public uses at the site, it is recommended that the General Plan
designation of the property be changed from Public /Quasi Public to Office Professional. The
Public /Quasi Public designation is intended for public uses, such as schools, libraries, police and
fire stations, and faith communities. The re- designation is consistent with General Plan
designations to the north and west of the subject site and would accommodate office uses, where
the AHOZ would allow residential uses, subject to the conditions of the AHOZ.
The Town Council held a joint study session with the Planning Commission on the AHOZ
components and the Design Guidelines on October 15, 2012. Please see Exhibit 11 of
Attachment 1 for a thorough discussion of the AHOZ goals and components, and Exhibit 12 of
Attachment 1 for the meeting minutes. The report to the Planning Commission (Attachment 1),
addresses the questions raised at the October 15 study session; provides an analysis of the
recommended re- designation of the 375 Knowles and 14205 Capri Drives; summarizes the
Addendum EIR analysis; and responds to public inquiries raised regarding the AHOZ site
selection and consequences of not approving the AHOZ.
As noted in the Planning Commission report (Attachment 1), the state certified the Town's
Housing Element as meeting state law based on its review of the draft AHOZ ordinance. If this
key implementation program is not approved, the state would require the Town to reassess how
to address the RHNA requirements, which would most likely result in significant rezoning and
possibly decertifying the Town's Housing Element. Without a valid Housing Element, the Town
would be limited in its ability to fully evaluate future development proposals and to maintain the
authority to make land use decisions or approve development applications. In one recent case, a
Bay Area community lost its ability to approve any new commercial development until its
Housing Element was brought into compliance with state law. The certified Housing Element
also preserves the presumption that the Element complies with state law. This last point is most
notable since noncompliant Housing Elements make attractive legal targets for parties who seek
to invalidate local land use or redevelopment decisions. The certified Housing Element will also
allow the Town to remain eligible for housing grants and transportation funds. Moreover, the
Town would be vulnerable to applicants using the State's Density Bonus law on these properties
that are zoned residential, which could result in greater densities (up to 35% bonus). The Town
would have no authority to deny these applications.
DISCUSSION:
A. Project Summary
The AHOZ was specifically designed not to rezone the five properties where the overlay is
applied. By leaving the existing zoning intact, the property owner has the option to develop
either under the existing zoning and applicable development standards or alternatively, under
the AHOZ, but not a combination of both. In the case of the five properties, the Courthouse
is zoned Office, Southbay Development is zoned Commercial Manufacturing, and the three
Oka Road properties are zoned residential. With the exception of the Courthouse property,
the AHOZ also does not replace any of the existing General Plan Designations. As a former
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: Zoning Code Amendment A- 12- 002 /General Plan Amendment GP -12 -004
January 9, 2013
public institutional use, the Courthouse property has a Public General Plan Designation,
which is no longer appropriate. It is recommended that this property be changed to an Office
General Plan Designation. The office designation is consistent with the property's current
office zoning, is more compatible with the surrounding uses to the west and north, and will
allow either office or residential development consistent with the Town Council's intent for
the property, which is formally documented through Resolution 2011 -063 (Attachment 2 to
Exhibit 11 of Attachment 1).
To further encourage the property owner to utilize the AHOZ, the Town is processing all the
necessary applications to implement the AHOZ, including the text amendment to the Town
Code to incorporate the AHOZ development standards and affordability ratios and a Zoning
Map amendment to incorporate the AHOZ overlay on the five properties. As noted above, a
General Plan Amendment to redesignate the former Courthouse and County office building
property is also proposed with the implementation actions.
The Town has processed an Addendum to the General Plan Environmental Impact Report
(EIR) to assess whether the removal of five of the previously identified ten sites from the
AHOZ and the potential additional units on two of the remaining five sites through granting a
density bonus and higher base density on the Southbay Development site would create any
additional impacts that were not anticipated in the General Plan EIR. A traffic analysis was
conducted and concluded that the removal of the five sites and the potential additional units
on the Southbay Development and Courthouse properties resulted in a maximum of seven
additional units over the number that was studied in the General Plan EIR. No new impacts
were identified, and accordingly the Town is processing an Addendum to the EIR.
If the aforementioned actions are approved, an AHOZ site applicant would be responsible for
processing an Architecture and Site application and any applicable site - specific
environmental documentation, which would be subject to further review by Planning
Commission with a recommendation to Town Council for a final decision.
See the November 14, 2012, Planning Commission Staff Report (Attachment 1) and the
October 15, 2012, Town Council Study Session Report (Exhibit 11 to Attachment 1) for
additional information regarding these amendments and proposed guidelines.
B. Planning Commission
On November 14, 2012, the Planning Commission considered the proposed amendments and
guidelines and recommended adoption of the amendments and approval of the guidelines
with direction that Town staff meet with interested parties regarding this matter prior to the
Town Council public hearing. See Attachment 3 for the Commission's full discussion.
Attachment 13 contains five letters that were submitted to the Planning Commission during
the November 14, 2012, meeting.
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MAYOR AND TOWN COUNCIL
SUBJECT: Zoning Code Amendment A -12- 002 /General Plan Amendment GP -12 -004
January 9, 2013
C. Community Outreach Meeting
The Town held a Community Outreach meeting on December 18, 2012. The meeting was
advertised via two quarter page ads published in the Weekly Times the two weeks leading up
to the meeting, a full story appearing in the Weekly Times on December 11, 2012, public
notice cards mailed to all residents within 500 feet of each of the five AHOZ sites, and also
through a stakeholders email distribution list that was established to keep the community
informed of the AHOZ process.
Approximately 80 community members attended the meeting. Notes from the meeting are
included in Attachment 14. The meeting included a 30 minute presentation and 90 minutes
of questions and answers. The principal concerns noted are traffic impacts near and around
the Oka Road and Lark intersection and Knowles and Winchester, including in the
neighborhoods and along major roads connecting to and from the freeways; school impacts,
including both the Los Gatos and Campbell School Districts; and the belief that the majority
of the affordable and multi - family housing is currently located and planned for the northern
portion of the community.
Regarding the concern that the majority of the affordable housing is located in the northern
portion of the community, the Town prepared and presented an exhibit at both the November
14, 2012 Planning Commission meeting and the December 18, 2012 Community meeting
that illustrated the locations of affordable housing within the Town that was either
constructed as a result of the Town's Below Market Price Program inclusionary housing
requirement or by a non - profit affordable housing developer (Attachment 16). The map
illustrates affordable non - profit rental housing, market -rate rental, and mixed market and
affordable development, as well as the constraints on locating housing, such as the hillsides
and resource conservation areas. The other constraint that is not illustrated on the map that
affects the location of housing is the commercial areas in the Downtown and along Los Gatos
Boulevard and Santa Cruz.
Finally, the community has continued to be updated on the process via the stakeholders email
distribution and the "What's New" Section on the Town's Web Site, where various resource
documents have been made available for the community's review.
PUBLIC COMMENTS:
Significant public discussion has occurred over the past four months, including emails and letters
contained in Attachment 15 and four meetings between staff and community members.
CONCLUSION:
The AHOZ meets the Town's goals of achieving compliance with the RHNA; could result in
quality mixed income residential development; and is consistent with the Town's recently
adopted and state Certified Housing Element. The GPC spent considerable time thoroughly
analyzing and discussing the development standards, affordability ratios, incentives, and
PACE
MAYOR AND TOWN COUNCIL
SUBJECT: Zoning Code Amendment A -12- 002 /General Plan Amendment GP -12 -004
January 9, 2013
architecture and site guidelines. The implementation of the AHOZ will establish a base from
which to develop the next Housing Element that will commence in 2013/2014. The Town was
recently issued 617 RHNA units for the upcoming 2014 — 22 Housing Element cycle. One of
the most important benefits of the AHOZ is that if it is approved, the five AHOZ sites that are
not developed prior to 2014 will help fulfill this forthcoming RHNA requirement. Provided
none of the sites are developed before 2014, the Town would only need to designate land that
would accommodate a minimum of 52 additional units for the 2014 — 22 Housing Element cycle.
ENVIRONMENTAL ASSESSMENT
An Addendum to the General Plan EIR has been prepared that describes the revised Affordable
Housing Overlay Zone and evaluates the changes to the project that have occurred since the
General Plan EIR was certified in September 2010 (Exhibit 10 of Attachment 1). Based on
studies, including an updated traffic study, the Addendum determines that the revised Affordable
Housing Overlay would not create any new or significant environmental impacts that were not
already evaluated in the General Plan EIR, and would not increase the severity of any previously
identified significant impacts.
FISCAL IMPACT:
With the recent approval of the Sustainable Communities Strategy, the Bay Area's program for
compliance with SB 375, eligibility for future transportation funds to local agencies are
dependent on a number of factors, including a State Certified Housing Element. If the Town
were to not approve the AHOZ and the State decertified the Housing Element, the Town would
not be eligible for any future transportation funds until it secured a Certified Housing Element.
Although actual amounts vary, in the past Los Gatos has received approximately $500,000 to
$1,000,000 in transportation funding annually for pavement rehabilitation and roadway
reconstruction type projects.
The AHOZ was developed primarily by Town staff with assistance from the Town Architect.
The General Plan Implementation Fund was used to finance the "Affordable Housing Overlay
Zone Design Guidelines."
Attachments:
Received Under Separate Cover
1. November 14, 2012, Staff Report to the Planning Commission
2. November 14, 2012, Desk item to the Planning Commission
3. Excerpt of the Planning Commission verbatim meeting minutes of November 14, 2012
PAGE 7
MAYOR AND TOWN COUNCIL
SUBJECT: Zoning Code Amendment A -12- 002 /General Plan Amendment GP -12 -004
January 9, 2013
Received with this Report
4. Required Findings
5. Draft Zoning Ordinance Amendment
6. Draft Resolution for General Plan Amendment GP -12 -004
7. Ordinance Applying the AHOZ Designation to APN: 406 -28 -032
8. Ordinance Applying the AHOZ Designation to APN: 424 -32 -077
9. Ordinance Applying the AHOZ Designation to APN: 424 -08 -074
10. Ordinance Applying the AHOZ Designation to APN: 424 -08 -057
11. Ordinance Applying the AHOZ Designation to APN: 424 -08 -021
12. Draft Resolution Approving Affordable Housing Overlay Zone Design Guidelines
13. Five Letters Submitted to Planning Commission During the November 14, 2012, Meeting
14. December 18, 2012, Community Meeting Notes
15. Public Comments Received between October 2012 and 12:00 p.m. January 17, 2013 (Emails
and Letters)
16. Town of Los Gatos Affordable Housing Map
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