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Staff Report PREPARED BY: JOEL PAULSON Community Development Director _______________________________________________________________________________________ Reviewed by: Assistant Town Manager Town Attorney Finance _________________________________________________________________________ C:\Users\slombardo\Desktop\07 staff report.doc 4/14/2016 4:04 PM MM MEETING DATE: 04/19/16 ITEM NO: 7 COUNCIL AGENDA REPORT DATE: APRIL 14, 2016 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: PLANNED DEVELOPMENT APPLICATION PD-14-001, MITIGATED NEGATIVE DECLARATION ND-14-002. PROJECT LOCATION: 16212 LOS GATOS BOULEVARD. PROPERTY OWNER: 16212 LOS GATOS BOULEVARD LLC. APPLICANT: STEM DEVELOPMENT. A. CONSIDER ADOPTION OF A MITIGATED NEGATIVE DECLARATION AND ADOPTION OF A MITIGATION MONITORING AND REPORTING PROGRAM. B. CONSIDER A REQUEST FOR A PLANNED DEVELOPMENT TO DEMOLISH THE EXISTING BUILDING AND TO CONSTRUCT 11 SINGLE-FAMILY RESIDENCES ON PROPERTY ZONED CH. APN 523- 06-010 AND 011. RECOMMENDATION: After opening and closing the public hearing, it is recommended that the Town Council accept the Planning Commission’s recommendation and deny the Planned Development application. BACKGROUND: The 0.94 - acre site is comprised of two parcels and contains a 2,300-square foot single-story commercial building, currently occupied by Artisan Wine Depot. The site was redeveloped in 1997 as the used car sales lot for the Honda Dealership previously located at 16213 Los Gatos Boulevard. The property has a General Plan land use designation of Mixed Use Commercial and is zoned CH Restricted Highway Commercial. The applicant is proposing a residential development with 11 units and has applied for a Planned Development overlay. The General Plan and Town Code provide an option for projects on sites larger than 40,000 square feet to be processed as a Planned Development (PD). The Town is currently reviewing potential changes to the Planned Development Ordinance. PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 16212 LOS GATOS BOULEVARD/PD-14-001/ND-14-002 APRIL 12, 2016 BACKGROUND (continued): The Conceptual Development Advisory Committee (CDAC) has considered residential proposals for the subject site on August 10, 2011 and August 14, 2013. The minutes from those meetings are included in Exhibit 5 of Attachment 2. The applicant is requesting approval of the Planned Development (PD) overlay application. If approved, the applicant is also requesting direction from the Council that can be incorporated into the next steps of the development review process consisting of an Architecture and Site and subdivision applications. The application was considered by the Planning Commission on February 24, 2016. The Commission forwarded a recommendation for denial to the Town Council as discussed in more detail in this report. The Council is the final deciding body for the Planned Development application. DISCUSSION: A. Project Summary The applicant is requesting approval of a PD overlay which would include the following elements on the 0.94-acre site:  Demolition of the existing building;  Removal of existing site improvements;  Removal of up to 18 protected trees (15 on-site trees and three street trees);  Construction of 10 market rate single-family detached residences;  Construction of one low income Below Market Price unit; and  Landscaping, private street, parking, and other site improvements. All of the homes would include two-car garages and eight additional guest parking spots would be provided on-site. Access to the site would be provided from Shannon Road. The applicant applied for a PD overlay because the project, as proposed, involves a number of exceptions from the existing CH Restricted Highway Commercial zoning:  Reduced setbacks along Los Gatos Boulevard from 15 feet (required) to seven feet, four inches for the residences and two feet, one inch for the porches (proposed);  Reduced setbacks along Shannon Road from 25 feet (required) to 10 feet (proposed);  Reduced rear setbacks for units C-1 thru C-3 from 30 feet (required) to 10 feet (proposed);  Reduced side setback for unit C-3 from 24 feet (required) to four feet, five inches (proposed); PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: 16212 LOS GATOS BOULEVARD/PD-14-001/ND-14-002 APRIL 12, 2016 DISCUSSION (Continued):  Exception to the maximum allowed home square footage ranges, which from 827 square feet to 2,182 square feet per lot (if the shared access is included in the lot area); proposed home square footages range from 1,744 to 3,299 square feet (excluding cellar);  Project signage proposed is not permitted by Town Code (Section 29.10.135). B. Planning Commission On February 24, 2016 the Planning Commission conducted a public hearing for the subject application (Attachment 6 contains the verbatim minutes of the meeting). Staff recommended denial of the project (see Attachment 2) due to concerns regarding:  The appropriateness of a residential use in this location;  Density and massing in relation to the adjacent neighborhood;  Diversity of unit types and architecture; and  Intensity of the proposed development. The Commission heard public testimony from residents regarding the proposed development. The Commission unanimously recommended denial of the PD based on the following concerns:  The number of units proposed;  The intensity of the proposed development as it relates to height and massing, particularly along Los Gatos Boulevard;  The traffic associated with the residential uses; and  The loss of hillside views C. Applicant’s Revised Proposal Based on the public testimony received at the Planning Commission hearing, the applicant has provided an additional option for the Town Council to consider (Attachment 10). The revision removes the three-story townhouse style residences along Los Gatos Boulevard and proposes eight single-family detached residences on the project site. Four of the residences would front on Los Gatos Boulevard, two would front on Shannon Road, and the remaining two would front on the private street/driveway. All but one of the units would have vehicle access from Shannon Road. The residence along the northern property line would have a detached garage at the rear of the proposed property with a ten-foot wide driveway access from Los Gatos Boulevard. The residences are shown with traditional craftsman style architecture. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: 16212 LOS GATOS BOULEVARD/PD-14-001/ND-14-002 APRIL 12, 2016 DISCUSSION (Continued): This new concept has not had any technical evaluation. If the Council indicates that this concept is worth pursuing, the Council is encouraged to provide specific comments and feedback for the applicant and the Planning Commission. The applicant would then need to revise the application accordingly, technical reviews would need to be completed, and the Planning Commission would need to conduct a new public hearing. As a Planned Development, the Planning Commission would review the new design and provide a recommendation to the Town Council. The Council would be the final deciding body. Additionally, if the Town Council believes the best use for the property is residential only, , direction should be provided regarding whether a General Plan amendment from Mixed Use Commercial to a Residential designation should be required. ENVIRONMENTAL ASSESSMENT: An Initial Study and Mitigated Negative Declaration (MND) were prepared for the project by the Town’s Environmental Consultant, EMC. The 20-day public review period began on January 22, 2016 and ended on February 11, 2016. Mitigation measures are required for Aesthetics, Air Quality, Biological, Cultural Resources, Geology and Soils, Hazardous Materials, Noise, and Traffic. The Mitigation Monitoring and Reporting Program are provided in Attachment 1. Mitigation measures have been incorporated into the performance standards of the PD Ordinance (Attachment 11). CONCLUSION: The Planning Commission recommended denial of the proposed project based on the concerns raised by the public and Town staff. It is recommended that the Town Council accept the Planning Commission’s recommendation and deny the application ALTERNATIVES: Alternatively, the Council may: 1. Approve the Planned Development application and adopt the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program by taking the following actions in one or more motions: a) Find that the no significant impacts are associated with the application and adopt the Mitigated Negative Declaration (Attachment 8) and the Mitigation Monitoring and Reporting Program (Attachment 1). PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: 16212 LOS GATOS BOULEVARD/PD-14-001/ND-14-002 APRIL 12, 2016 ALTERNATIVES (Continued): b) Make the required finding that the zone change is internally consistent with the General Plan and its elements (Attachment 8) and approve the Planned Development application (PD-14-001) subject to the performance standards and development plans included in the Planned Development Ordinance (Attachment 11), or as otherwise modified by the Town Council; c) Waive the reading of the Ordinance and ask the Clerk Administrator to read the title of the proposed Ordinance; d) Introduce the Ordinance effecting the zone change; or 2. Approve the proposed application with modifications and/or additional conditions; or 3. Continue the application to a date certain with specific direction; or 4. Remand the project to the Planning Commission with specific direction. Attachments previously received under separate cover: Initial Study and Mitigated Negative Declaration, received January 22, 2016 Attachments received with this Report: 1. Mitigation Monitoring and Reporting Program (six pages) 2. February 24, 2016 Planning Commission Staff Report (with Exhibits 1-10) 3. February 24, 2016 Planning Commission Addendum Report (with Exhibit 11) 4. February 24, 2016 Planning Commission Desk Item Report (with Exhibit 12) 5. Public Comments received at February 24, 2016 Planning Commission meeting (nine pages) 6. February 24, 2016 Planning Commission Verbatim Minutes (109 pages) 7. Public Comments received 11:01 a.m. Wednesday, February 24, 2016 to 11:00 a.m. Thursday, April 14, 2016 8. Required findings 9. Photos of installed story poles (six pages) 10. Additional development option provided by applicant (15 pages) 11. Planned Development Ordinance (23 pages) with Exhibit A Rezone Area (one page) and Exhibit B Development Plans (41 pages) Distribution cc: Stem Development, Scott Plautz, 17066 Melody Lane, Los Gatos, CA 95033