SANTA BARBARA COUNTY PLANNING COMMISSION Staff Report for Stonegate Orcutt Ventures, LLC Recorded Map Modification and Development Plan Revision

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1 SANTA BARBARA COUNTY PLANNING COMMISSION Staff Report for Stonegate Orcutt Ventures, LLC Recorded Map Modification and Deputy Director: Alice McCurdy Staff Report Date: July 21, 2014 Division: Development Review Case No.: 14RMM Supervising Planner: Zoraida Abresch 14RVP Supervising Planner Phone #: Staff Contact: Florence Trotter-Cadena Planner s Phone #: Environmental Document: CEQA Section 15164, [Addendum to an EIR or Negative Declaration] OWNER: Mrs. Dixie Wells Stonegate Orcutt Ventures, LLC 124 West Main Street, #G Santa Maria CA (805) AGENT: Mrs. Frances Romero c/o FORMA 237 Town Center West #272 Santa Maria, CA (805) This site is identified as Assessor Parcel Nos through -046, located south of Old Town Orcutt, north and east of Rice Ranch Road in the southwest Orcutt area, Fourth Supervisorial District. Application Complete: May 13, 2014 Processing Deadline: 60 days from Acceptance of Addendum 1.0 REQUEST Hearing on the request of Frances Romero, FORMA, agent for Dixie Wells, Stonegate Orcutt Ventures, LLC to consider Case No. 14RMM and 14RVP , [applications filed on February 20, 2014] to modify Condition No. 24 of TM 14,481, in compliance with Section of County Code Chapter 21 and 98-DP-019, under Section of the Land Use Development Code on property zoned in the SLP zone district under Section of the Land Use Development Code, to allow for a reduction in the number of affordable units; and accept the Addendum to Environmental Impact Report (95-EIR-01) pursuant to Section of the State Guidelines for Implementation of the California Environmental Quality Act. There are no new significant environmental impacts as a result of

2 Page 2 this modification and revision request. The original EIR identified significant but mitigable effects on the environment in the following categories: Air Quality, Biological Resources, Fire Protection, Geology/Flooding, Noise, Risk of Upset/Oil Hazards, Schools, Solid Waste/Wastewater, Traffic/Circulation, Visual/Aesthetics, and Water Resources. The Addendum to the EIR and all documents may be reviewed at the Planning and Development Department, 624 West Foster Road, Suite C, Santa Maria. The Addendum to the EIR is also available for review at the following location: The application involves Assessor Parcel Nos through -046, located south of Old Town Orcutt, north and east of Rice Ranch Road in the Orcutt area, Fourth Supervisorial District. 2.0 RECOMMENDATION AND PROCEDURES Follow the procedures outlined below and conditionally approve Case Nos. 14RMM and 14RVP marked "Officially Accepted, County of Santa Barbara August 13, 2014 County Planning Commission Attachment E", based upon the project's consistency with the Comprehensive Plan and based on the ability to make the required findings. Your Commission's motion should include the following: 1. Make the required findings for approval of the project specified in Attachment A of this staff report, including CEQA findings. 2. Determine that the proposed CEQA Section Addendum, dated July 21, 2014 (included as Attachment B), together with the previously adopted EIR (95-EIR-001) and Addendum (dated August 11, 2003), satisfy the CEQA requirements for the project, and no subsequent Environmental Impact Report. 3. Approve the project (14RMM and 14RVP ) subject to the conditions included as Attachment C. Refer back to staff if the County Planning Commission takes other than the recommended action for appropriate findings and conditions.

3 Page JURISDICTION This project is being considered by the Santa Barbara County Planning Commission based upon: 3.1 Chapter 21 of the County Code, Section g which states that any proposed modification of a final map shall require a public hearing before the decision-maker with current jurisdiction for the final map proposed to be modified. Section 21-6 of Chapter 21 states that the Planning Commission shall be the decision maker for all tentative maps to other discretionary cases under their jurisdiction. 3.2 Section B.3 (Table 8-2) of County Land Use and Development Code, which identifies the review authority for Development Plans. The Planning Commission is the decision-maker as the proposed project does not meet the criteria listed under Section B.3 for the decision maker to be either the Director or the Zoning Administrator. In addition, the Planning Commission was the decision-maker for the original project. 4.0 ISSUE SUMMARY The proposed Recorded Map Modification (RMM) and (RVP) are being requested to modify Condition 24 of TM 14,481 and 98-DP-019. This condition requires the construction of affordable housing units. The proposed RMM and RVP would allow for a reduction in the number of affordable units based on the recent changes to the Inclusionary Housing Ordinance (IHO) approved by the Board of Supervisors on May 14, Affordable Housing The Stonegate project was conditioned to require provision of 15 affordable units on site. Five units were required to be provided onsite to satisfy the affordable housing requirements for the Harp Springs Development. An additional five units were to be provided in exchange for a reduction in the open space requirement for the Stonegate Development. Lastly, five units were required to meet the onsite inclusionary affordable housing requirements, per the County Housing Element in effect at that time. Since that time, the developer has paid in-lieu fees for the five units associated with the Harp Springs Development and constructed two Low Income units on the Stonegate property, thereby partially satisfying the requirement for 15 affordable units. As part of this application, the developer contends that the open space for the project was miscalculated and that therefore the five units required in exchange for a reduction in open space are not in fact required. The minimum requirement for open space in the SLP zone district is 15%. A letter dated June 19, 2014 from Kevin Small, Pleinaire Design Group certified that the open space existing within the Stonegate Development is approximately 19%. Based on the calculations provided in Mr. Small s assessment, the Stonegate development satisfies the open

4 Page 4 space requirements for the SLP zone district. As such, the additional units should not have been required. Therefore, the development currently requires the construction of three additional units. The Recorded Map Modification and is being requested to allow for a reduction in the number of affordable units based on the recent changes to the Inclusionary Housing Ordinance (IHO) approved by the Board of Supervisors on May 14, The requested modification of Condition 24 would bring the development under the current Inclusionary Housing Ordinance (IHO). Under today s IHO, the requirement for a 44 unit residential project is one (1) Very Low unit and one (1) Low income unit. As the two currently developed affordable units are in the low income range, the applicant would still have to provide a very low unit or pay in-lieu fees. As a result, the applicant is required to either: 1) provide one Very Low unit onsite, (for a total of three affordable units onsite) or 2) pay in-lieu fees (for a total of two affordable units onsite). 4.2 Orcutt Community Plan The project (TM 14,481) site encompasses approximately 40% of the Orcutt Community Plan (OCP) Keysite 17; the other portion is owned by the Orcutt Union School District. Development standard KS 17-3 requires that 1-2 acres (¾ of an acre on each project site) be devoted to a public park with a minimum frontage of 100 feet on Soares Avenue. The developer has constructed a 22,012 square foot (approximately 0.51 acres) park fronting on Soares Avenue within the Stonegate development. The existing park is approximately 10,658 square feet or 0.24 acres short of the required park size. However, the intent of this development standard regarding the location and size of the park, was to provide visual mitigation to preserve and protect views of the Solomon and Casmalia Hills from Old Town Orcutt. The existing park exceeds the required 100 foot frontage on Soares Avenue by 50 feet and effectively preserves the mountain views. In addition, a new condition has been added to the proposed RMM and RVP to ensure that Lot 44 would limit the future single family dwelling to single-story. The project would meet the intent of this development standard thereby ensuring that long range southerly views from Old Town Orcutt are preserved. 5.0 PROJECT INFORMATION 5.1 Site Information Comprehensive Plan Designation Ordinance, Zone Site Size Present Use & Development Surrounding Uses/Zone(s) Site Information Residential (Multiple), 8 units per acre maximum Land Use and Development Code, SLP (Small Lot Plan) 7.91 acres The site is currently developed with 25 single family dwellings; with a remainder of 19 undeveloped residential lots. North: Single Family Residential/OT-R-14 South: Key Site #13 consisting of a church and SFD/DR 0.5

5 Page 5 Access Public Services Site Information East: Key Site #17 Vacant property owned by School District/DR-20.0 West: Key Site #15/PRD Soares Avenue and First Street Water Supply: Golden State Water (through agreement with City of Santa Maria) Sewage: Public Sewer (Laguna County Sanitation) Fire: Orcutt Fire Station Police: County Sheriff Other: Orcutt Union School District/Santa Maria Joint Union High School District 5.4 Description The proposed project is a request of Frances Romero, FORMA, agent for Dixie Wells, Stonegate Orcutt Ventures, LLC, owner, to consider case numbers 14RMM and 14RVP to modify condition 24 of TM 14,481 and 98-DP-019 as follows (deletion and addition indicated by strikethrough and underline): Five (5) dwelling units shall be provided onsite, at sales prices affordable to low income households, with an affordability target of 75% of median income, consistent with the Housing Element and the Housing Element Implementation Guidelines. Ten (10) additional units shall be provided onsite, at sales prices affordable to low income households, with an affordability target of up to 80% of median income level, consistent with the Housing Element and the Housing Element Implementation Guidelines. Plan Requirements and Timing: Prior to final map recordation and land use clearance, the applicant shall enter into and record an Agreement to Provide Affordable Housing and a Shared Equity Appreciation Restrictive Covenant with the County of Santa Barbara, agreeing to provide [15] affordable units at sale prices affordable to low income households, as required by the Housing Element and Housing Element Implementation Guidelines for the Santa Maria Housing Market Area. A Shared Equity Appreciation Restrictive Covenant shall be recorded upon the sale of each restricted unit for sale. The Agreement and Covenant shall be based upon the County's model agreement and covenant. Both shall be subject to review and approval by Planning & Development, Treasurer and County Counsel. These documents shall specify affordability consistent with the terms described above and shall include provisions describing marketing and lottery requirements for the initial sale of units. Income eligibility of prospective purchasers shall be determined by the County or its designee. An intent to reside statement shall be required for potential owners of the affordable units. The maximum sales price for the affordable units shall not exceed the maximum levels established by the Board of Supervisors, consistent with the provisions of the Housing Element. The units shall be subject to the provisions of the Shared Equity Appreciation Restrictive

6 Page 6 Covenant for thirty (30) years after the owner takes title or until the owner transfers the property, whichever occurs first. To date, the developer has constructed two low income units onsite. Pursuant to the recently adopted Inclusionary Housing Ordinance (IHO) the developer is required to provide one unit in the very low income range. The IHO does not provide any exception to allow for the developer to pay a portion of the fees to meet the very low income unit requirement. As a result, the applicant is required to either: 1) provide one Very Low unit onsite, (for a total of three affordable units onsite) or 2) pay in-lieu fees (for a total of two affordable units onsite). Developer shall provide a total of one unit in the very low and one unit in the low income categories consistent with the IHO approved by the Board of Supervisors on May 14, Developer may voluntarily opt to satisfy the requirements of this condition through one or a combination of the following alternatives: 1) providing the price-restricted affordable housing units onsite; and/or 2) paying fees in-lieu of providing the price restricted affordable housing units onsite. In addition, in-lieu fees were paid for the additional five units required to be provided on site in order to satisfy the affordable housing requirements of Harp Springs, Keysite Background Information On September 10, 2003, the Planning Commission approved the Stonegate project (TM 14,481, 98-DP-019) to divide 7.91-acres into 46 lots (44 single family lots, one open space lot and one retention basin lot). On September 14, 2011, the Planning Commission approved a recorded map modification (07RMM ) to allow project fencing to use redwood instead of concrete masonry to be consistent with project architecture in style and appearance. In-lieu fees were paid for the additional five units required to be provided on site in order to satisfy the affordable housing requirements of Harp Springs, Keysite 8. On February 20, 2014, the developer submitted an RMM and RVP requesting to reduce the affordable housing requirements. To date, two affordable units, 23 market rate homes, a retention basin, and a park have been built onsite. In addition, six zone clearances and associated building permits have been issued for an additional six market rate units.

7 Page Environmental Review 6.0 PROJECT ANALYSIS An Environmental Impact Report (95-EIR-01) and subsequent CEQA Section (Addendum dated August 11, 2003) were approved for the previous project (Stonegate Ranch, TM 14,481/98-DP-019/98-RN-011). The potential environmental impacts of the Stonegate Ranch were evaluated in (95-EIR-01 and subsequent CEQA Section dated August 11, 2003) and mitigation measures for these impacts were incorporated into the Condition of Approval for Stonegate Ranch. The previously approved CEQA Section addendum dated August 11, 2003 is included in Attachment D. CEQA Guidelines Section allows an addendum to the previously certified EIR (95-EIR- 01) and Addendum (dated August 11, 2003) unless the conditions in CEQA Guidelines Section have occurred. Here, the conditions in CEQA Guidelines Section have not occurred, as discussed in Attachment A, CEQA Findings 1. Thus, CEQA Guidelines Section applies, allowing an addendum to the previously certified EIR (95-EIR-01) and addendum (August 11, 2003). The original 95-EIR-01 and subsequent CEQA Section addendum dated August 11, 2003 evaluated the potentially significant long and short-term impacts of development of the subject parcels on Air Quality, Biological Resources, Fire Protection, Geology/Flooding, Noise, Risk of Upset/Oil Hazards, Schools, Solid Waste/Wastewater, Traffic/Circulation, Visual/Aesthetics, and Water Resources, and found that all of these potential impacts were subject to feasible mitigation. Mitigation measures included landscape and lighting restrictions, dust control measures, tree protection plans, designated building envelopes for each parcel and erosion control measures. CEQA review for the current Stonegate Orcutt Ventures proposal (14RMM and 14RVP ) was performed under a CEQA Section Addendum (dated July 21, 2014) which evaluated housing and aesthetics (Attachment B). The developer is requesting a reduction in the number of affordable units to be developed onsite. No significant changes to the project description have been requested, and the environmental setting of the project site has not substantially changed since the original project was approved. Additionally, no new information or substantial importance has become available since the project was originally approved. The project does not propose additional residential development or extend development into areas previously not evaluated. The short-term, long-term and cumulative impacts associated with the proposed project have not increased or changed since the time of original project approval. The mitigation measures originally identified would remain applicable and adequate to reduce the potential impacts to less than significant levels. Because none of the conditions in CEQA Guidelines Section have occurred, no subsequent EIR or ND shall be prepared for this project.

8 Page Comprehensive Plan Consistency Provided below is a policy discussion pertaining to the applicant s proposed project for a reduction in the affordable housing requirements pursuant to the Inclusionary Housing Ordinance. A detailed policy consistency discussion for the entire Stonegate project is included in the Planning Commission staff report dated September 3, 2003 (Attachment D). REQUIREMENT Comprehensive Plan Housing Element Policy 6.5: To provide for affordable housing needs that are generated by new housing development, the County shall promote the inclusion of affordable housing units as part of residential land use and development. Housing Element Policy 6.6: To increase the supply of affordable housing units and retain the long term affordability of these housing units, the County shall require specified types of discretionary residential projects to provide a portion of the development as price restricted affordable housing units, the construction of onsite residential second units (RSU), and/or the payment of in-lieu fees for use in the development of affordable housing. Specified projects shall comply with the requirements set forth for inclusionary housing in Chapter 46 Affordable Housing Enforcement and Chapter 46A - Inclusionary Housing Ordinance (IHO) of the Santa Barbara County Code. DISCUSSION Consistent: The Stonegate development was approved with conditions requiring affordable housing. To date, two affordable units have been constructed. The proposed RMM and RVP would bring the development under the current Inclusionary Housing Ordinance. Therefore the project is consistent with this policy. Consistent: Under the new Inclusionary Housing Ordinance, Stonegate would have to provide 1.1 units in the Very Low Income Category and 1.1 units in the Low Income Category. When units are constructed onsite, the fractional portion is dropped if under 0.5. As a result, the inclusionary housing requirements for Stonegate for units constructed onsite consist of one unit in the Very Income Low Category and one unit in the Low Income Category. (Section 46A-2, Definitions, of the Inclusionary Housing Ordinance includes definitions of the terms Very Low and Low household income categories. These categories are defined as a percent of area median income.) Currently there are two Low Income Category units constructed onsite. Based on the recently adopted Inclusionary Housing Ordinance Stonegate is still required to provide one unit in the Very Low Income Category. Conditions of approval require an agreement to be recorded that ensures long-term affordable housing of the Very Low Income Category and the Low Income Category units.

9 Page 9 REQUIREMENT DISCUSSION Orcutt Community Plan Land Use Policy LUR-O-1: Consistent with the Housing Element, the County shall encourage the provision of a mix of affordable units on parcels within the Orcutt Planning Area. Orcutt Community Plan Key Site 17 Policies DevStd KS17-1: Any discretionary development shall include a landscape buffer consisting of drought-tolerant trees and shrubs of sufficient density to partially screen the proposed development from Rice Ranch Road, Soares Avenue, and Dyer Street. The buffer along Soares shall be integrated with the planned park (see Figure KS17-1). A meandering trail as shown on Figure KS17-1 shall also be developed. In the event that Stonegate chooses to pay the in-lieu fee for the Very Low Category, the Inclusionary Housing Ordinance requires that the fee be paid on the full 1.1 unit as the fee must include the fractional portion. The total in-lieu fee due based on the recently adopted In-Lieu Inclusionary Housing Fees (January 7, 2014) for the Very Low Income Category would be $63, ($58, x 1.1). As conditioned, the project would be consistent with this policy. Consistent: Key Site 17 is one of the Orcutt Planning Area residential sites identified to meet the County s Regional Housing Needs Assessment (RHNA) requirements. As originally approved, the Stonegate Ranch development was required to provide a mix of affordable units onsite. At present, there are two existing affordable units onsite. Therefore the project is consistent with this policy. Under the new Inclusionary Housing Ordinance, the payment of in-lieu fees (rather than the provision of additional restrictedaffordability units onsite) may be used to satisfy the remaining affordable housing requirements for the proposed RMM and RVP. As fee schedules are subject to annual adjustments, the final fee amount shall be based on the annual In-Lieu fee schedule in effect at the time of payment. Consistent: The project is developed with a landscape buffer and a meandering trail along the project frontage of Rice Ranch Road. Therefore, the project is consistent with this policy.

10 Page 10 REQUIREMENT DevStd KS17-2: Homes located on the periphery of the site and those adjacent to the neighborhood park shall be one-story, except as noted in Action KS17-6. Any two story development shall be visually compatible with, and shall not significantly block long-range southerly views from, Old Town Orcutt. DevStd KS17-3: Any discretionary development shall provide for dedication and construction of a 1-2 acre public neighborhood park fronting along the western portion of Soares Avenue as conceptually depicted on Figure KS Parcels and shall each contribute at least 3/4 of an acre to this park and the park shall be a minimum of 100 feet wide where it fronts Soares Avenue. DISCUSSION Consistent: The existing Stonegate project is currently developed with an existing 22,012 square foot park with a width of 150 foot fronting on Soares Avenue. In addition, the project has been conditioned (Condition 6) that the future single family dwelling located on Lot 44 shall be single story in order to protect the southerly views. Therefore, the project is consistent with this policy. Consistent: The Stonegate project has constructed a park within the existing development of approximately 22,012 square feet. In addition, the proposed project has been conditioned (Condition 6) that the future single family dwelling located on Lot 44 shall be single story. The existing park along with the height limitation on the adjacent parcel, meet the intent of this development standard to preserve and protect long range southerly views and views of the Solomon and Casmalia Hills from Old Town Orcutt. Therefore, the project is consistent with this policy. 6.3 Zoning: Land Use and Development Code Compliance Compliance with Land Use and Development Code Requirements The proposed project would be consistent with the requirements of the Countywide Land Use Development Code including the provisions for building height, setbacks and parking. There are no outstanding violations associated with the subject property. As such, the property is in compliance with all applicable zoning regulations. The SLP zone district requires that a minimum of fifteen (15) percent of the gross area shall be in common open space, which shall include a recreational area with facilities for the use of the residents of the development. The site is currently developed with a 22,012 square foot park, and a retention basin used by the residents of Stonegate for additional recreational facilities. Such facilities are generally provided in a central location and may include lawn and picnic areas, swimming pools, tennis courts, etc. Laundry facilities or other non-recreational uses are not included in the common open space under the SLP zone district. Improved sidewalks, walkways, or paths are required to link all residential lots to the recreational facilities. If the SLP is to be developed in phases, the open space/community recreation area must be developed during the first phase of construction.

11 Page 11 The project currently contains 1.52 acres of common open space. This equates to approximately 19% of the site. 6.4 Subdivision/Development Review Committee The project was not reviewed by the Subdivision/Development Review Committee as the requested modification involves only the affordable housing requirement and does not involve construction. 6.5 Public Input No issues were raised by the public as part of the proposed project. 6.6 Other Review The proposed project has been reviewed by the Housing and Community Division of the Community Services Department and Planning and Development s Long Range Planning Division for consistency with the recently adopted Inclusionary Housing Ordinance. 7.0 APPEALS PROCEDURE The action of the Planning Commission may be appealed to the Board of Supervisor within 10 calendar days of said action. The appeal fee to the Board of Supervisors is $ ATTACHMENTS A. Findings B. CEQA Section Addendum for the proposed modification, dated July 21, 2014 C. Conditions of Approval D. Original Stonegate Ranch Staff Report and Attachments (Findings, CEQA Addendum dated August 11, 2003, Conditions of Approval) E. Site Plan

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