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Subdivision Application 100 Prospect AveWN nF MEETING DATE: 03/24/14 ` ITEM NO. f` Ylli, I 1 oasa`to COUNCIL AGENDA REPORT DATE: March 19, 2014 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: SUBDIVISION APPLICATION M -13 -003 ENVIRONMENTAL IMPACT REPORT EIR -13 -002. PROPERTY LOCATION• 100 PROSPECT AVENUE PROPERTY OWNER/APPLICANT• SISTERS OF THE HOLY NAMES OF JESUS AND MARY. CONSIDER PROPOSED SUBDIVISION OF A 10.3 ACRE PACREL INTO 17 LOTS ON PROPERTY ZONED R -1:20. APN 529 -44 -005. RECOMMENDATION: After opening and closing the public hearing, it is recommended that: The Town Council certify the Environmental Impact Report (Exhibits 1 and 2 of Attachment 1), adopt the Mitigation Monitoring and Reporting Plan (Attachment 7), make the required findings (Attachment 8) and adopt a resolution to approve Subdivision Application M -13- 003 (Attachment 9), subject to the conditions in Exhibit A of Attachment 9 and the development plans in Exhibit B (Exhibit 9 of Attachment 1) (motion required). ALTERNATIVES: Alternatively, the Council may: I. Continue the subdivision application with direction to staff and the applicant (motion required); or 2. Remand the subdivision application to the Planning Commission for further consideration (motion required); or 3. Deny the subdivision application (motion required). PREPARED BY: SANDY L. BAILY, AICP S(3 Director of Community Development Reviewed by: -a Assistant Town Manager ' % own Attorney Finance N:\DEV\TC REPORTS\2014\Prospect 100- VTM.doc Refonnatted: 5/30/02 Revised: 3/19/14 4:16 PM PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 100 Prospect Avenue/M -13 -003, EIR -13 -002. March 19, 2013 BACKGROUND The subject 10.3 acre property is located on the west side of Prospect Avenue, east of College Avenue, at the northerly terminus of Prospect Avenue. Kimble Avenue and Reservoir Road tie into the Prospect Avenue frontage. The property was acquired by the applicant in 1945 and is developed with a convent and conference facility that opened in 1952. Existing buildings on the site total 85,367 square feet. The two largest buildings are three stories, two buildings are two- stories and two buildings are single -story. The site also includes surface parking lots, paved paths and driveways, unpaved service roads and various landscaped areas. One of the structures, the Stone House, is on the Town's Historic Resources Inventory. There are 1,000 Sisters of the Holy Names worldwide with 169 residing in California and 66 Sisters residing at the Prospect Convent. Additional history and detail on the property and subdivision proposal is contained in the applicant's letter (see Exhibit 7 of Attachment 1). The convent and conference facilities operate under a Conditional Use Permit (CUP) that allows a wide range of uses including housing, care facilities, educational uses, retreats, recreational activities, masses, celebrations, common dining, and other religious and community activities. The campus can house up to 140 Sisters and operates 24 hours a day, 365 days a year. Up to 65 employees travel to and from the site on a daily basis covering three work shifts. The convent is a full service retreat and conference center for the Sisters and other organizations and can accommodate up to 150 people. The Sisters intend to sell the 10.3 acre property following approval of the subdivision application. The sale of the property will provide funding for the health care and housing needs of aging members. The purchaser of the property will demolish the existing site improvements, install subdivision improvements, and either develop the lots or sell them to individuals for development of custom homes. The Sisters will retain the Villa Holy Names property at 82 Prospect Avenue for residential purposes only. Villa Holy Names consists of three parcels and contains seven structures that all existed prior to approval of the CUP for the convent and conference center. On February 27, 2014, the Planning Commission considered the Subdivision application and forwarded a recommendation for certification of the EIR, adoption of the Mitigation Monitoring and Reporting Plan, and approval of the Subdivision application. DISCUSSION: A. Project Summary The applicant is requesting approval of a Vesting Tentative Map to subdivide a 10.3 acre property into 17 lots. The proposed number of lots is consistent with the allowable density and the General Plan land use designation of Low Density Residential (0 to 5 units per acre). Additional detail on the proposal is included in the February 26, 2014, Report to the Planning Commission (Attachment 1). PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: 100 Prospect Avenue/M -13 -003, EIR -13 -002. March 19, 2013 As part of the Vesting Tentative Map approval, Town ordinances, standards, and policies in effect at the time the subdivision application is approved would be applicable to all subsequent steps to complete the project. A list of the items that would be vested is included on pages 4 and 5 of the Report to the Planning Commission (Attachment 1). B. Demolition of Existing Structures and Improvements All of the existing facilities are proposed for demolition. An Architecture and Site (A &S) application is required for the demolition of the structures, including the Marian, Siena, Cortona and Seraphine Buildings, Stone House, and Regional Office. Condition #4 specifies that the A &S application is required and that the Development Review Committee (DRC) will be the deciding body for the demolition application. On February 26, 2014, the Historic Preservation Committee considered the demolition of the Stone House since that structure is included in the Town's Historic Resources Inventory. The Committee recommended that the structure be saved if possible as it has historic value. However, the structure is in very poor condition. The applicant submitted a structural report (Attachment 3) and Termite Report (Attachment 6) in support of the demolition. The applicant provided additional information on the condition of Stone House at the Planning Commission meeting, as did several other persons who testified during the public hearing. The applicant also provided a detailed historic report on the property that was included in the EIR analysis. The determination of the historic consultant was that the Stone House has only minor local architectural associations. Stone House is an ancillary building to a former house that no longer exists, and is not considered a historic resource under CEQA. While the structure may have local historic value, it is not locally designated and is not eligible for the State or National Registers. The building was included in the Historic Resources Inventory as it was constructed prior to 1941. Due to its condition, it is not feasible to move the Stone House to a new location. It is also impractical to try and raise the building to construct a new foundation due to the lack of structural integrity and its location on a slope that is approximately 40 %. The Planning Commission recommended that the structure be demolished based on the additional information that was provided through public testimony, inclusive of the fact that the building is not visible from off -site and would not be accessible to the public. Following the Planning Commission meeting the applicant submitted the Termite Report as additional evidence in support of the demolition of the Stone House. The findings for demolition of an historic structure that are addressed in the applicant's letter (Attachment 5) are from the Secretary of the Interior Standards. These findings are used by the Historic Preservation Committee as a guide and are not mandated by Town Code. Town Code Section 29.10.09030 requires one of the following findings to be made to demolish an historic structure: 1. The structure poses an imminent safety hazard; or 2. The structure is determined not to have any special historical, architectural or aesthetic interest or value. PAGE MAYOR AND TOWN COUNCIL SUBJECT: 100 Prospect Avenue/M -13 -003, EIR -13 -002. March 19, 2013 The applicant has provided evidence that the Stone House is structurally unsound (unreinforced masonry, cripple wall failure and in ground wood posts being used for support), and there is significant termite damage and infestation throughout the structure in support of finding #1. C. Conditional Use Permit The Planning Commission added a condition of approval requiring the CUP to be amended to apply only to the Villa Holy Names property, prior to recordation of the final map. The Sisters do not intend to continue any of the CUP functions such as conferences or retreats, and will use the Villa Holy Names for residential use only. The existing residences are legal nonconforming structures that were all constructed prior to the Sisters acquiring the property in the 1940's. Since the Sisters will be using the residences to house some of their members and the use is permitted in the R -1:20 zone, it is not necessary to amend the CUP. Instead the CUP will be rescinded in conjunction with the recordation of the final map. Condition #5 specifies this requirement. D. Planning Commission Action On February 26, 2014, the Planning Commission considered the subdivision application. The Commission voted unanimously to forward a recommendation for approval of the certification of the EIR, adoption of the Mitigation Monitoring and Reporting Plan and approval of the subdivision application. Attachment 4 is a verbatim transcript of the Planning Commission meeting. The Commission indicated a desire to have the historic use of the property recognized and requested that the Town Council consider including the installation of a historic marker or exhibit, possibly reusing the stone from the Stone House and stone walls and structures that will be demolished. ENVIRONMENTAL ASSESSMENT: While an Initial Study and Mitigated Negative Declaration could have been prepared for the project, the applicant elected to have an Environmental Impact Report (EIR) prepared. As part of the environmental review process a number of technical reports were prepared, including a tree inventory, archaeological, biological, historical, noise, geotechnical, storm water management and traffic analyses. Reports that were prepared by outside consultants were peer reviewed by Town Consultants, inclusive of the geotechnical, storm water management and traffic reports. A more extensive arborist report was prepared by the Town's Consulting Arborist. A Notice of Availability for review of the Draft EIR (DEIR) was released on October 22, 2013, with the 45 -day public review period ending on December 6, 2013. On November 12, 2013 the Planning Commission held a public hearing to accept comments on the DEIR. Verbal comments were received from five individuals. Written comments on the DEIR were received from two residents. Letters were also received from Santa Clara County Valley Transportation Authority (VTA) and Los Gatos Union School District stating that those agencies had no comments on the DEIR. The Response to Comments was completed on February 10, 2014 and was distributed for the required 10- PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: 100 Prospect Avenue /M -13 -003, EIR -13 -002. March 19, 2013 day public review. The Response to Comments and the Draft EIR are combined to form the Final EIR. A Mitigation Monitoring and Reporting Plan (MMRP) was prepared for the project as required by CEQA (see Attachment 6). The MMRP includes all mitigation measures and which department(s) is /are responsible for ensuring that the mitigation measure is properly implemented and the timing. The mitigation measures have also been incorporated into the conditions of approval (Exhibit A of Attachment 9). CONCLUSION: It is recommended that the Town Council take the actions outlined in the Recommendation Section of this report to certify the EIR and approve Subdivision application M -13 -003. FISCAL IMPACT: None Attachment previously received on 10/22/13 (un- numbered): • Draft EIR Attachment Previously received on 02/14/14 fun-numbered ): • Final EIR/Comments and Responses Attachments previously forwarded on 03/07/14: 1. February 26, 2014 Report to Planning Commission with P.C. report Exhibits 1 -9 2. February 26, 2014 Planning Commission Desk Item with P.C. report Exhibits 10 -15 3. Home Inspection Report for Stone House Attachment Previously forwarded 03/14/14: 4. Verbatim Meeting Minutes — Planning Commission February 26, 2014 Attached received with this report: 5. Applicant's letter, received March 7, 2014 (five pages) 6. Termite Report, received March 7, 2014 (ten pages) 7. Mitigation Monitoring and Reporting Plan (11 pages) 8. Required Findings (two pages) 9. Resolution for Approval with Exhibit A (24 pages total) 10. Resolution to Remand the project to the Planning Commission (three pages) PAGE MAYOR AND TOWN COUNCIL SUBJECT: 100 Prospect Avenue/M -13 -003, EIR -13 -002. March 19, 2013 11. Resolution for Denial (three pages) 12. Soderberg email, received March 19, 2014 (one page) 13. Grassman email, received March 19, 2014 (one page) 14. Sobrato email, received March 19, 2014 (one page) Distribution Sister Mary Pat Le Roy, SNJM, P. O Box 907, Los Gatos, CA 95031 Leatha Clark, Morley Bros., 405 Alberto Way, Suite 3, Los Gatos, CA 95032 SLB:SA:cgt