4MEETING DATE: 11/4/13
ITEM NO: t j
GAt '
COUNCIL AGENDA REPORT
DATE: October 30, 2013
TO: MAYOR AND TOWN COUNCIL p
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: INTRODUCTION OF A GENERAL PLAN AMENDMENT TO INCLUDE THE
AFFORDABLE HOUSING OVERLAY ZONE SITES IN THE HOUSING
ELEMENT TECHNICAL APPENDIX HOUSING SITES INVENTORY;
AMENDING THE TOWN CODE TO INCORPORATE THE AFFORDABLE
HOUSING OVERLAY INTO DIVISION 5 ARTICLE VIII OVERLAY ZONES
AND HISTORIC PRESERVATION; ADOPTION OF AFFORDABLE
HOUSING OVERLAY ZONE DESIGN GUIDELINES; AND APPLICATION
OF AN AFFORDABLE HOUSING OVERLAY TO FIVE PROPERTIES
GENERALLY LOCATED AT:
A. KNOWLES DRIVE, EAST OF WINCHESTER BOULEVARD, APN 424-
32 -077
B. LOS GATOS LODGE, 50 LOS GATOS SARATOGA ROAD, APN 529 -24-
032
C. LOS GATOS LODGE, 50 LOS GATOS SARATOGA ROAD, APN 529 -24-
001
D. HIGGINS BUSINESS PARK, 400 BLOSSOM HILL ROAD, APN 529 -16-
071
E. LOS GATOS OAKS APARTMENTS, 517 BLOSSOM HILL ROAD, APN
529 -16 -042
RECOMMENDATION:
After opening and closing the public hearing, and asking the Clerk Administrator to read the title
of the proposed ordinance, it is recommended that the Town Council:
1. Accept the Planning Commission's findings and recommendations in the form of meeting
minutes (Attachment 3) (no motion required).
PREPARED BY: Sandy L. Baily, Director of Community Development 6 (Z
Reviewed by: Assistant Town Manager Town Attorney Finance
N: \DEV \TC REPORTS\2013\AHOZ TC 114-13 [FINAL].docx Reformatted: 5/30/02
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MAYOR AND TOWN COUNCIL
SUBJECT: Affordable Housing Overlay Zone /A -12 -003/ GPA -13 -003
October 30, 2013
2. Adopt the Addendum to the General Plan Environmental Impact Report (EIR) with noted
CEQA findings (Exhibit 10 of Attachment 1) (motion required).
3. Adopt the Resolution amending the General Plan Housing Element Technical
Appendix Housing Sites Inventory (Attachment 6) (motion required).
4. Make the required finding that the proposed Zoning Code amendments are consistent with
the General Plan and its Elements (Attachments 4) (motion required).
5. Accept the recommendation of the Planning Commission to adopt the amendment to the
Zoning Ordinance of the Town of Los Gatos effecting the Zoning Code amendments
(Attachment 5) (motion required).
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)
(motion required).
7. Introduce the five ordinances applying the AHOZ to five sites listed in this report
(Attachments 7 through 11) (motion required).
8. Adopt the Resolution approving the Affordable Housing Overlay Zone Design Guidelines
(Attachment 12) (motion required).
9. Move to waive the reading of the Zoning Code and Map amendment ordinances (motion
required).
10. Move to introduce the Ordinance of the Town of Los Gatos effecting the Zoning Code
amendments to the Town Code A -12 -003 (Attachment 5) (motion required).
BACKGROUND:
On January 22, 2013, the Town Council convened a public hearing to consider a proposed
Affordable Housing Overlay Zone (AHOZ) which included five recommended AHOZ sites,
AHOZ Design Guidelines, an Addendum to the 2010 General Plan EIR, two associated General
Plan amendments, required Zoning Ordinance amendments, and resolutions to implement the
AHOZ as required by the Town's State Certified Housing Element.
As a result of considerable public testimony and discussion during the public hearing, Council
continued its review of the AHOZ to a date uncertain and referred the matter back to the General
Plan Committee and Planning Commission for reconsideration of the recommended AHOZ sites.
As part of the Council direction, staff was asked to provide additional outreach to potentially
affected neighborhoods of selected sites and to provide additional information regarding
potential traffic and school impacts (Exhibit 11 of Attachment 1).
The General Plan Committee has held six public meetings from February 27, 2013 to September
25, 2013 to review the AHOZ as directed by Town Council. The Committee reviewed the
original 41 locations considered by the Town as potential AHOZ sites as well as 11 additional
sites suggested by residents. General Plan Committee minutes from these meetings are attached
for Council's reference (Attachment 12 -17 of Attachment 1).
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MAYOR AND TOWN COUNCIL
SUBJECT: Affordable Housing Overlay Zone /A -12 -003/ GPA -13 -003
October 30, 2013
On May 8, 2013, after reviewing sites recommended by staff and members of the public, the
Committee reached a consensus to remove the Los Gatos Courthouse and three Oka Road sites
from consideration as potential AHOZ sites and selected the following five sites for inclusion as
designated AHOZ sites with a base density of 20 dwelling units per acre:
• Southbay Development, Knowles Drive, east of Winchester Boulevard, APN 424 -32 -077
• Los Gatos Lodge, 50 Los Gatos Saratoga Road, APN 529 -24 -032
• Los Gatos Lodge, 50 Los Gatos Saratoga Road, APN 529 -24 -001
• Higgins Business Park, 400 Blossom Hill Road, APN 529 -16 -071
• Los Gatos Oaks Apts., 517 Blossom Hill Road, APN 529 -16 -042
On June 4, 2013, staff facilitated a neighborhood outreach meeting to share information with
residents about the AHOZ, the sites selected by the Committee, preliminary traffic and student
generation rates, and the upcoming Planning Commission and Town Council meetings.
From August to September 2013, the General Plan Committee reviewed required changes to the
previously drafted AHOZ Design Guidelines which reflected the deletion of the previous sites,
inclusion of new AHOZ sites, and reviewed proposed development criteria that is required to be
drafted into Zoning Ordinance Amendments to implement the AHOZ.
On September 25, 2013, the General Plan Committee recommended approval to the Planning
Commission and Town Council of the AHOZ Design Guidelines with the newly selected sites
incorporated and the associated development criteria.
DISCUSSION:
A. Proiect Summary
The technical changes required to implement an AHOZ program, as required by the State
certified Housing Element and recommended by the General Plan Committee and Planning
Commission include:
• Adoption of a resolution updating the Housing Sites Inventory table and an associated
map showing AHOZ sites in the Housing Element Appendix
• Adoption of a resolution approving the AHOZ Design Guidelines which are separate
from the AHOZ Zoning Ordinance standards
• Adoption of an ordinance amending the Zoning Ordinance to include the proposed
AHOZ standards and development criteria
• Adoption of ordinances to change the Zoning Code Maps to reflect the recommended
AHOZ sites
• Adoption of the Addendum FIR
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MAYOR AND TOWN COUNCIL
SUBJECT: Affordable Housing Overlay Zone /A -12 -003/ GPA -13 -003
October 30, 2013
Staff and the Town's consultant have prepared the AHOZ materials to comply with the State
HCD requirements and the direction given by the Town Council, Planning Commission, and
General Plan Committee. A thorough description of the project is included with Attachment 1.
B. Planning Commission
On October 9, 2013, the Planning Commission reviewed the AHOZ program materials and
unanimously forwarded the matter to the Town Council with a recommendation for adoption.
PUBLIC COMMENTS:
The public has been extensively involved with the General Plan Committee and Planning
Commission reconsideration of the AHOZ and members of the public have participated at every
meeting. The majority of the public concerns have related to the following:
• The Town's ability to change the RHNA mandates
• Geographic distribution of proposed AHOZ sites
• Limiting densities to the minimum required by State HCD
• Potential impacts to local school enrollments
• Potential impact to roads or increased traffic
• Notification of nearby neighborhoods
Two members of the public spoke at the Planning Commission hearing. One speaker submitted
written correspondence at the hearing (Attachment 2). Subsequent to the meeting the Town has
received additional correspondence regarding this matter which is discussed below (Attachment
13).
STAFF COMMENT:
Subsequent to the Planning Commission meeting, staff met individually with one of the public
members who spoke at the meeting and a business colleague of the other speaker. Following is a
summary of those meetings.
• Redevelopment of AHOZ Sites - One individual identified that his group's concerns
regarding the future redevelopment of AHOZ properties. Due to the redevelopment
concerns discussed, which may be addressed during Public Comments at the Town
Council bearing, staff felt it was relevant to clarify this matter for the Town Council.
As originally conceived, the Affordable Housing Overlay Zone (AHOZ) designation
meets the State requirements to plan for accommodating additional units and is intended
to provide property owners another option for how their properties could be used in the
future in addition to the permitted uses authorized by the existing underlying zone
designation and /or any planned development overlay already in place for the individual
properties. The AHOZ does not preclude a property owner from developing a property
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MAYOR AND TOWN COUNCIL
SUBJECT: Affordable Housing Overlay Zone /A -12 -003/ GPA -13 -003
October 30, 2013
under the "non -AHOZ" underlying zoning or other overlay zones that are currently in
place for a property, nor does it prevent a property owner from proposing to rezone
property to another designation.
The proposed AHOZ Zoning Ordinance standards only become relevant if a property
owner initiated a development proposal with a significant number of affordable housing
units in excess of what would be required by the Town's inclusionary requirements from
the Below Market Price (BMP) program and elected to exercise the ability to use the
AHOZ development standards and developer concessions available with the AHOZ
overlay zoning designation. For reference, the BMP program typically requires market
rate projects in excess of five units to provide between 10 -20 percent of proposed units as
BMP rental or for -sale units that are affordable to low or median - income households.
If an AHOZ designation is adopted for a property, the overlay would remain on the
property unless the property owner or the Town initiated a rezoning process to remove
the designation. Section 29.80.515 of the proposed AHOZ Zoning Ordinance notes that
"Once the land has developed in the manner provided in the underlying zoning, the
property owner shall relinquish the right to redevelop the land using the AHOZ overlay."
This text was intended to prevent the potential over intensification of a site by partially
redeveloping it using the underlying zoning and then seeking a subsequent AHOZ
development approval to allow more intensive development. This section is not intended
to preclude or limit a property owner from proposing to completely redevelop a site in the
future by utilizing the AHOZ standards if there is already existing development on site at
the time of the AHOZ site designation by the Town which already complies with the
existing underlying zoning.
Preventing the future redevelopment on sites with existing development would defeat the
purpose of creating the AHOZ. It would also be inconsistent with the General Plan
Committee site designation analysis which emphasized identifying sites with potential to
accommodate additional housing units.
• AHOZ Design Guidelines - The second speaker at the October 9, 2013 the Planning
Commission meeting noted concerns regarding formatting, continuity, and clarity issues
related to the Draft AHOZ Guidelines and illustrations. The Commission encouraged her
to provide written comments to staff (Attachment 13).
Staff concurs with one point in the submitted written comments that the recommended
draft AHOZ Zoning Ordinance Amendment (Attachment 5) does not include a density
bonus provision and that depending on the Town Council's action may be inconsistent
with the recommended AHOZ Design Guidelines. Staff has provided a revised
resolution (Attachment 12) which allows the Town Council to approve the AHOZ Design
Guidelines and "directs the Town Manager to make any changes to Exhibit A that are
necessary to maintain consistency with any referenced Town Code (Chapter 29 Zoning
Regulations) Sections."
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MAYOR AND TOWN COUNCIL
SUBJECT: Affordable Housing Overlay Zone /A -12 -003/ GPA -13 -003
October 30, 1013
ENVIRONMENTAL ASSESSMENT:
The proposed revisions to the AHOZ, which now includes lower densities, a reduce number of
potential units, deletion of sites, better geographic distribution, and designation of new sites
recommended by the General Plan Committee, results in fewer units and potentially less impacts
than what was previously considered under the original 2010 General Plan EIR.
The AHOZ program currently recommended by the General Plan Committee and Planning
Commission has a maximum of 428 units, instead of the 621 units previously considered in 2010
and 2012. The environmental analysis prepared for the revised AHOZ project assumes a "worst -
case" scenario that included up to 27 dwelling units per acre or up to 35- percent density bonus
(577 units). However, the General Plan Committee and Planning Commission both
recommended a base density of 20 dwelling units with no density bonus concession for
developers. If their recommendation is accepted by Town Council, this would effectively limit
potential AHOZ development to 428 units and would further lessen any potential impacts
analyzed by the environmental consultant in the Addendum EIR (i.e. by another 149 fewer
units).
Pursuant to Section 21166 of the California Environmental Quality Act (CEQA) and Section
15162 of the State CEQA Guidelines, after an EIR has been certified for a project, if some minor
technical changes to the previously certified EIR are necessary, preparation of an Addendum to
the EIR is appropriate. A supplemental EIR is not required unless there is substantial evidence
that modifications to the project would substantially increase the severity of the impacts
identified in the previous EIR. Under CEQA, "substantial evidence" includes facts, reasonable
assumptions predicated upon facts, and expert opinion supported by facts.
As determined through the detailed analysis of the Initial Study checklist in Chapter II of the
Addendum EIR (Exhibit 10), the approval of the AHOZ would not involve new significant
environmental effects or a substantial increase in the severity of previously identified significant
effects beyond those already identified in the certified Final EIR.
No significant environmental impacts have been identified as a result of this project and an
Addendum to the 2020 General Plan EIR was prepared (Exhibit 10). The Technical Appendix of
the Addendum was not included in this report due to its extensive volume, and is available for
review upon request. The proposed AHOZ considered changes or additions to the project
analyzed in the 2020 General Plan EIR. However, the adoption of AHOZ and modification to
the AHOZ sites and densities would not result in new potentially significant impacts beyond
those identified in the 2020 General Plan EIR that was certified by the Town Council (see full
analysis in the EIR Addendum). Therefore, pursuant to CEQA, an Addendum to the EIR was
prepared.
The deciding body should determine that: (1) a Final EIR for the Los Gatos General Plan 2020
was certified and adopted by Town Council on September 20, 2010; and, (2) based on the
analysis in the Appendix G Checklist in the Addendum, adoption and implementation of the
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MAYOR AND TOWN COUNCIL
SUBJECT: Affordable Housing Overlay Zone /A -12 -003/ GPA -13 -003
October 30, 2013
AHOZ would not create any new or significant environmental impacts when compared to those
studied in the Los Gatos General Plan 2020 EIR; and, (3) since the time that Council certified the
FEIR in 2010, some changes or additions are necessary, but none of the conditions described in
Section 15162 requiring preparation of a subsequent EIR have occurred.
CONCLUSION:
The recommended General Plan Amendment which revises a table and map exhibit in the
Housing Element Technical Appendix, the proposed Zoning Ordinance amendments, and the
five Zoning Code Map amendments are required to fully implement the AHOZ program as
required by the Town's certified Housing Element and satisfies the State mandate that the Town
has adequately zoned land and has planning in place to potentially accommodate the remaining
un -met Regional Housing Need Allocation identified for Los Gatos during the 2007 -2014
Housing Element Period. The prepared Addendum EIR notes that the revised AHOZ program
has reduced densities, fewer units, and less potential impact than what was previously analyzed
in the 2010 General Plan EIR.
FISCAL IMPACT:
There will be no fiscal impact in that the cost would be covered by the existing fees for
ministerial or discretionary review of permits /applications.
ATTACHMENTS:
Received Under Separate Cover
1. Staff Report to the Planning Commission for the meeting of October 9, 2013
2. Copy of Fred Lyon's speaker handout from the Planning Commission meeting of October
9, 2013
Received with this Report
3. Verbatim Minutes to the Planning Commission meeting of October 9, 2013
4. Required Findings
5. Draft Zoning Ordinance Amendment
6. Draft Resolution for General Plan Amendment GP -13 -003
7. Ordinance Applying the AHOZ Designation to APN: 424 -32 -077
8. Ordinance Applying the AHOZ Designation to APN: 529 -24 -032
9. Ordinance Applying the AHOZ Designation to APN: 529 -24 -001
10. Ordinance Applying the AHOZ Designation to APN: 529 -16 -071
11. Ordinance Applying the AHOZ Designation to APN: 529 -16 -042
12. Draft Resolution Approving Affordable Housing Overlay Zone Design Guidelines
13. Correspondence from Lee Quintana received October 23, 2012
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