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375 Knowles DriveMEETING DATE: 08/05/14 1 I COUNCIL AGENDA REPORT ITEM NO: q DATE: JULY 30, 2014 ,J TO: MAYOR AND TOWN COUNCIL v L FROM: GREG LARSON, TOWN MANAGER SUBJECT: PLANNED DEVELOPMENT APPLICATION PD -13 -002 GENERAL PLAN AMENDMENT GP -13 -001 ENVIRONMENTAL IMPACT REPORT EIR -13- 003. PROJECT LOCATION: 375 KNOWLES DRIVE. PROPERTY OWNER: COUNTY OF SANTA CLARA APPLICANT• KT PROPERTIES. A. CONSIDER CERTIFICATION OF AN ENVIRONMENTAL IMPACT REPORT AND ADOPTION OF A MITIGATION MONITORING AND REPORTING PROGRAM. B. CONSIDER A REQUEST FOR A GENERAL PLAN AMENDMENT FROM PUBLIC TO OFFICE PROFESSIONAL. C. CONSIDER A REQUEST FOR A PLANNED DEVELOPMENT TO DEMOLISH THE EXISTING BUILDING AND TO CONSTRUCT 33 SINGLE- FAMILY RESIDENCES ON PROPERTY ZONED O. APN 406- 28 -032. RECOMMENDATION: After the Mayor opens and closes the public hearing and the Clerk reads the title of the zoning ordinance, it is recommended that the Town Council: 1. Certify an Environmental Impact Report for 375 Knowles Drive Planned Development; 2. Accept the Planning Commission's recommendation to deny the General Plan amendment; and 3. Deny the Planned Development application. ALTERNATIVES: Instead of the recommendation above, the Town Council may make a motion(s) to: PREPARED BY: LAUREL R. PREVETTI Assistant Town Manager irector of Community evelopment Reviewed by: N/A Assistant Town Manager own Attorney Finance N1DMTC REPORTS\2014075Know1m.doc Reformatted: 5/30/02 PAGE MAYOR AND TOWN COUNCIL SUBJECT: 375 KNOWLES DRIVE /GP- 13- 001/PD- 13- 002/EIR -13 -003 July 30, 2014 1. Deny the General Plan amendment and the Planned Development application without certifying the Environmental Impact Report pursuant to the California Environmental Quality Act (CEQA); or 2. Approve the proposed project, by taking the following actions in one or more motions: A. Rescind Council Resolution 2011 -063 (Attachment 13); B. Adopt a resolution (Attachment 14) to certify the Environmental hnpact Report (EIR- 13 -003) (Attachments 1 and 2), adopt the Mitigation Monitoring and Reporting Program (Attachment 3), make the required finding that the General Plan amendment (GP -13 -001) is internally consistent with the existing goals and policies of the General Plan and its corresponding Elements (Attachment 12), and amend the General Plan to change the land use designation from Public to Office Professional; C. Make the required finding that the zone change is internally consistent with the General Plan and its elements. (Attachment 12) and approve the Planned Development application (PD -13 -002) subject to the performance standards and development plans included in the Planned Development Ordinance (Attachment 17), or as otherwise modified by the Town Council; D. Waive the reading of the zone change Ordinance; E. Introduce the Ordinance effecting the zone change; or 3. Continue the project to a date certain with specific direction; or 4. Remand the project to the Planning Commission with specific direction. BACKGROUND: The subject property is located on the north side of Knowles Drive, west of Capri Drive. The site is comprised of two surplus parcels owned by Santa Clara County (see Exhibit 3 and Exhibit A of Exhibit 7 of Attachment 4). The project site wraps a corner parcel owned by El Camino Hospital and has frontage on both Knowles and Capri Drives. The Courthouse site parcels are currently designated Public in the General Plan and zoned 0- Office. In addition, in 2011, the Town Council adopted a resolution affirming the General Plan designation and zoning (Attachment 13). Preliminary plans for residential and office developments were reviewed by the Conceptual Development Advisory Committee (CDAC) on June 13, 2012. The CDAC minutes are attached as Exhibit 6 of Attachment 4. The County surplus property known as the Courthouse Site, inclusive of the two parcels being proposed for development and the corner parcel that is now owned by El Camino Hospital, was previously considered for an Affordable Housing Overlay Zone. The property was ultimately eliminated from the list of possible sites and an AHOZ overlay was not applied to any of the parcels comprising the Courthouse Site. PAGE MAYOR AND TOWN COUNCIL SUBJECT: 375 KNOWLES DRIVE /GP -13- 001 /PD -13- 002 /EIR -13 -003 July 30, 2014 On March 19, 2013, a Planned Development (PD) application was filed for a 45 unit single - family residential project. Through the course of the planning process the applicant eliminated five units and modified the site plan to a 40 unit proposal which was then submitted to the Planning Commission. The PD application includes a General Plan Amendment (GPA) to change the land use designation from Public to Office Professional. The GPA was considered by the General Plan Committee (GPC) on June 26, 2013. The GPC recommended that the land use designation be changed to Office Professional rather than Medium Density Residential (see Exhibit 8 of Attachment 4). DISCUSSION: A. Project Summary The developer is requesting the approval of • An Environmental Impact Report and Mitigation Monitoring and Reporting Program; • A General Plan Amendment; and • A Planned Development. General Plan Amendment The current General Plan land use designation for the property is Public. A GPA is proposed to change the land use designation from Public to Office Professional, which would be consistent with the existing O (Office) zoning designation. Residential is a conditional use in the O zone, so a residential project would not be inconsistent with an Office Professional land use designation. The GPC considered the proposed GPA on June 26, 2013, and recommended that the land use designation be Office Professional as that would allow the greatest flexibility for future use of the site (see Exhibit 8 of Attachment 4). Attachment 14 is a draft Council resolution to approve the proposed GPA. Planned Development The applicant is requesting approval of a PD application to construct 33 single family residences, which includes four BMP units. A PD application was filed because the applicant is requesting the following exceptions to zoning requirements: • Reduced setbacks; • Reduced lot sizes; • Floor Area Ratios (FAR) that are higher than would be allowed for a standard single family subdivision; and • Building coverage that exceeds 40% for individual lots. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: 375 KNOWLES DRIVE /GP -13- 001 /PD -13- 002 /EIR -13 -003 July 30, 2014 The purpose of a PD overlay zone is to provide for alternative uses and developments more consistent with site characteristics than are allowed in other zones, to create optimum quantity and use of open space, and to encourage good design. A PD is required to include only conceptual development plans; however, the applicant has developed detailed plans to demonstrate the merits of the project and convey the architectural design. The applicant has also provided a revised graphics package illustrating the revised 33 unit proposal (Attachment 18). Information regarding the earlier submittal for 40 units is provided in Exhibit 16. Land Use As previously noted, the Town Council adopted a resolution in 2011 stating that any proposed housing project that does not meet the Town's Affordable Housing Overlay Zone (AHOZ) requirements would not be a permitted use (see Attachment 13). The property was removed from the list of possible AHOZ sites in 2013. In order to approve the PD, Council resolution 2011 -063 will need to be rescinded or amended. B. Planning Commission On May 14, 2014, the Planning Commission considered the subject applications (Attachment 10 contains the verbatim minutes of May meeting). The Commission continued the matter to their June 25, 2014 agenda and requested that the applicant provide revised plans that reduce the number of units and address the following issues: height, massing, open space, and the comments from the Consulting Architect dated March 19, 2014 (Exhibit 12 of Attachment 4). On June 25, 2014, the Planning Commission considered revised plans and information from the applicant. The major plan revisions that were made following the Planning Commission's May 14, 2014 meeting are summarized as follows: • The number of units has been reduced from 40 to 33, which includes four BMP units. • The previously proposed three -story units have been reduced to two -story units. • The minimum separation between units has been increased to a minimum of ten feet for all units. • Additional common open space has been provided which is illustrated as Lot H in the graphics package (Attachment 18). • The revised plans responded to the Consulting Architect's comments dated March 19, 2014 as explained in correspondence from the applicant's architect (Exhibit 20 of Attachment 7) and the applicant (Exhibits 21 and 22 of Attachment 7). At its June 25, 2014 meeting, the Planning Commission reviewed the EIR, GPA application, PD application, letter from the Consulting Architect dated June 20, 2014 (Exhibit 23 of Attachment 7), and other materials (Attachment 11 contains the verbatim minutes of June meeting). PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: 375 KNOWLES DRIVE /GP -13- 001 /PD -13- 002 /EIR -13 -003 July 30, 2014 After discussing the revised project and receiving public testimony, the Commission recommended denial of the PD application on a 4 -3 vote. The Planning Commission recommended denial because they determined that the proposed zone change was not consistent with the General Plan and the proposed General Plan amendment was not consistent with the General Plan's Goals and Policies and its Elements. The following summarizes the basis for this decision: • The proposed project does not meet the purposes for the use of a PD; • The design of the homes and site planning does not show excellence in design; • The proposed project does not look and feel like Los Gatos; • Noise is a concern and single family residences are not appropriate in this location; • There is not enough open space provided; • There is no justification for rescinding Resolution 2011 -063; and • Density and intensity are a concern. The applicant has provided a letter addressing the Planning Commission's action (Attachment 16). ENVIRONMENTAL ASSESSMENT: An Environmental Impact Report (EIR) was prepared for the project (Attachments I and 2). As part of the environmental review process a number of technical reports were prepared, including an arborist report, archaeological, biological, 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. The Final EIR includes a summary of the previously revised project, as a reduction of units from 45 to 40 occurred following preparation of the Draft EIR. In that case, no new impacts were created and some impacts, such as traffic, were lessened by the reduction of units. The additional reduction to 33 units does not create any new impacts and some impacts, such as traffic, will be lessened by the reduction of units. A Mitigation Monitoring and Reporting Program (MMRP) has been prepared as required by CEQA (see Attachment 3). The MMRP includes all mitigation measures, and the department(s) responsible for ensuring that the mitigation measure is properly implemented. The mitigation measures have also been incorporated into the performance standards in the Draft Planned Development Ordinance (Attachment 17). All potential impacts associated with the proposed project will be mitigated to a less than significant level through the implementation of the Mitigation Measures. FISCAL IMPACT: None. PAGE 6 MAYOR AND TOWN COUNCIL SUBJECT: 375 KNOWLES DRIVE /GP -13- 001 /PD -13- 002 /EIR -13 -003 July 30, 2014 CONCLUSION: The Planning Commission recommended denial of the proposed project, with the majority expressing concerns as summarized above in Section B. It is recommended that the Town Council accept the Planning Commission's recommendation and deny the General Plan amendment and Planned Development application. If the Council determines that the applications should be approved, the actions needed are outlined on page two of this staff report. Other alternatives for Council consideration and possible action are also on page two. Attachments (Previously received on December 3, 2013) 1. Draft Environmental Impact Report Attachments (Previously received on May 2, 2014) 2. Final Environmental Impact Report Responses to Comments Attachments received with this Report: 3. Mitigation Monitoring and Reporting Program (five pages) 4. Report to the Planning Commission for the meeting of May 14, 2014 with Exhibits 3 -16 5. Desk Item Report to the Planning Commission for the meeting of May 14, 2014 with Exhibits 17 -18 6. Desk Item 2 Report to Planning Commission for the meeting of May 14, 2014 with Exhibit 19 7. Report to the Planning Commission for the meeting of June 25, 2014 with Exhibits 20 -23 (Exhibit 24, Revised Planned Development Ordinance included as Attachment 19 below) 8. Desk Item Report to the Planning Commission for the meeting of June 25, 2014 with Exhibits 25 -27 9. Information received at the June 25, 2014 Planning Commission meeting from the public and fence photographs from the applicant (nine pages) 10. Verbatim minutes from the May 14, 2014 Planning Commission hearing (96 transcribed pages) 11. Verbatim minutes from the June 25, 2014 Planning Commission hearing (72 transcribed pages) 12. Required findings (one page) 13. Report to the Town Council for the meeting of September 19, 2011 with Attachments 1 -4 (provided as background information on Council Resolution 2011 -63) 14. Council Resolution 2011 -063, including Exhibit A (two pages) 15. Draft Resolution for General Plan Amendment (two pages) with Exhibit A (GPA Exhibit — one page) 16. Public communications received from June 26, 2014 through 12:00 p.m., Thursday, July 31, 2014 PAGE 7 MAYOR AND TOWN COUNCIL SUBJECT: 375 KNOWLES DRIVE /GP -13- 001 /PD -13- 002 /EIR -13 -003 July 30, 2014 17. Letter from the applicant (12 pages) 18. Neighborhood Outreach Efforts report from Applicant (one page) 19. Planned Development Ordinance (32 Pages), including Exhibit A (Rezoning Exhibit - one page) and Exhibit B (Official Development Plans - 28 pages) 20. Revised graphics package (15 Pages) Distribution cc: Mark Tersini, KT Properties, 21710 Stevens Creek Blvd., Suite 200, Cupertino, CA 95014 Beverley Bryant, 16940 Placer Oaks Road, Los Gatos, CA 95032 Laura Worthington - Forbes, Kimley Horn & Associates, 100 W. San Fernando Street, Suite 250, San Jose, CA 95113 Bruce Knopf, County of Santa Clara, 70 W. Hedding Street, San Jose, CA 95110 LRP:JP:cg THIS PAGE INTENTIONALLY LEFT BLANK