Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL. FROM: Planning Commission. DATE: September 28, 2015 SUBJECT: SEE BELOW COUNCIL DISTRICT: 3

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1 CITY OF 0% B: *2 SAN TOSE CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL SUBJECT: SEE BELOW COUNCIL AGENDA: 10/20/15 ITEM: 11. I (a) Memorandum FROM: Planning Commission DATE: September 28, 2015 COUNCIL DISTRICT: 3 SUBJECT: FILE NO. C CONVENTIONAL REZONING FROM THE CG COMMERCIAL GENERAL AND R-M MULTIPLE RESIDENCE ZONING DISTRICTS TO THE DC DOWNTOWN PRIMARY COMMERCIAL ZONING DISTRICT ON A 1.4-GROSS ACRE SITE LOCATED ON THE NORTHWESTERLY CORNER OF EAST SANTA CLARA STREET AND NORTH 5TH STREET (33 N. 5 ST.). RECOMMENDATION The Planning Commission voted (Ballard and Bit-Badal absent) to recommend that the City Council approve the proposed ordinance rezoning the property located on the northwesterly corner of East Santa Clara Street and North 5th Street. OUTCOME Should the City Council approve the Rezoning of the subject parcel from the CG Commercial General and R-M Multiple Residence Zoning Districts to the DC Downtown Primary Commercial Zoning District, the applicant would be able to apply for subsequent development permits to allow for uses consistent with the Downtown Primary Commercial Zoning District. BACKGROUND On September 23, 2015, the Planning Commission considered the proposed Rezoning. This item was heard on the Planning Commission's Consent Calendar. No members of the public asked to speak on this item and there was no discussion by the Commissioners. The motion to recommend that the City Council approve the ordinance Rezoning the subject property was approved by a vote. ANALYSIS Analysis of the issues regarding the proposed Conventional Rezoning, including General Plan conformance, is contained in the attached staff report.

2 HONORABLE MAYOR AND CITY COUNCIL September 28, 2015 Subject: C Page 2 EVALUATION AND FOLLOW-UP If the Rezoning is approved, the applicant may apply for Development Permits for uses consistent with the DC Downtown Primary Commercial Zoning District. PUBLIC OUTREACH Staff followed Council Policy 6-30: Public Outreach Policy in order to inform the public about the project. A notice of the public hearing was distributed to the owners and tenants of all properties located within 500 feet of the project site and posted on the City website. Notification of the rezoning was also published in a local newspaper, the Post Record. This staff report is also posted on the City's website. Staff has been available to respond to questions from the public. COORDINATION This project was coordinated with the Department of Public Works and the City Attorney's Office. CEOA An Addendum to the Envision San Jose 2040 General Plan Final Impact Report (Resolution No ) was prepared for this project under the provisions of environmental review requirements of Title 21 of the San Jose Municipal Code implementing the California Environmental Quality Act of 1970, as amended, because the Greenhouse Gas Emissions section of the General Plan Final Program Environmental Impact Report (FEIR) was invalidated. The environmental impacts of this rezoning were found to be adequately analyzed, in all resource areas except for Greenhouse Gas Emissions, in an Addendum dated September 9,2015 by the Envision San Jose 2040 General Plan FEIR because land uses authorized by the rezoning are consistent with the range of land uses assumed in the General Plan FEIR. /s/ HARRY FREITAS, SECRETARY Planning Commission For questions please contact Steve McHarris, Planning Official, at Attachments: Staff Report

3 PC AGENDA: ITEM: 3.a. CITY OF SAN JOSE CAPITAL OF SILICON VALLEY PLANNING COMMISSION STAFF REPORT Applicant: Xiang Li, SJSC Properties, LLC Location Northwesterly corner of East Santa Clara Street and North 5 th Street (33 North 5 th Street) Existing Zoning CG Commercial General and R-M Multiple Residence Council District 3 Historic Resource Yes (Identified Structure at APN ) Annexation Date: Original City CEQA: Addendum to the Envision San Jose 2040 General Plan Final Impact Report (Resolution No, 76041) APPLICATION SUMMARY: Conventional Rezoning from the CG Commercial General and R-M Multiple Residence Zoning Districts to the DC Downtown Primary Commercial Zoning District on a 1,4-gross acre site. RECOMMENDATION: Staff recommends that the Planning Commission recommend that the City Council approve the Conventional Rezoning. PROJECT DATA GENERAL PLAN CONSISTENCY General Plan Designation Downtown 3 Consistent 3 Inconsistent Consistent Policies Major Strategies 8 and 12; LU-2.2; LU-3.1; IP-1.6; IP-8.2 Inconsistent Policies None SURROUNDING USES General Plan Land Use Zoning Existing Use North Downtown CG Commercial General Parking garage R-M Multiple Residence South Public/Quas i-pub lie CG Commercial General San Jose City Hall East Downtown DC Downtown Primary Church Commercial West Downtown CG Commercial General DC Downtown Primary Commercial Gas station

4 Page 2 of 6 RELATED APPROVALS Date Action 3/27/1850 Annexed into the City of San Jose (Original City). 12/10/2003 Conditional Use Permit to allow construction of 2,000 square feet for temporary homeless shelter for teenagers at 31 and 39 North 5 th Street (APNs: , - 009, and -016) (File No. CP03-072). 9/26/2006 City Project to build Civic Center Parking Garage at 31 North 5 th Street (APN: ) (File No. CP ). 11/17/2008 Demolition of temporary homeless shelter for teenagers at 31 and 39 North 5 th Street (APNs: , -009, and -016) (Building File No ). PROJECT DESCRIPTION On August 5, 2015, the applicant filed an application for a Conventional Rezoning of the subject 1.4-gross acre site from the CG Commercial General and R-M Multiple Residence Zoning Districts to the DC Downtown Primary Commercial Zoning District. The site is currently paved parking lots and the Pacific Car Wash. The Pacific Car Wash is an Identified Structure under the City of San Jose's Historic Resources Inventory. The rezoning would enable a mixed-use residential and commercial development consistent with the General Plan designation of Downtown. No development permit applications are currently on file for the redevelopment of this site. Figure 1: Aerial Map

5 Page 3 of 6 ANALYSIS The proposed rezoning was analyzed with respect to conformance with the Envision San Jose 2040 General Plan, the current and proposed Zoning Designations, and the California Environmental Quality Act (CEQA). Envision San Jose 2040 General Plan Conformance The proposed rezoning of the subject site to the DC Downtown Primary Commercial Zoning District conforms to the Envision San Jose 2040 General Plan Land Use/Transportation Diagram designation of Downtown (see Figure 2), which includes office, retail, service, residential, and entertainment uses in the Downtown. Redevelopment should be at very high intensities, unless incompatibility with other major policies within the Envision General Plan (such as indicates otherwise. All development within this designation should Figure 2. General plan Diagram enhance the "complete community" in downtown, support pedestrian and bicycle circulation, and increase transit ridership. Residential projects within the Downtown designation should generally incorporate ground floor commercial uses. This designation does not have a minimum residential density range (DU/AC) in order to facilitate mixed-use projects that may include small amounts of residential in combination with significant amounts of non-residential use. Such mixed-use projects should be developed within the identified FAR range of up to The proposed rezoning is also consistent with the following General Plan Major Strategies and Land Use Policies as discussed in the following: 1. Major Strategy #8- Destination Downtown: Support continued growth in the Downtown as the City's cultural center and as a unique and important employment and residential neighborhood. Focusing growth within the Downtown will support the Plan's economic, fiscal, environmental, and urban design/placemaking goals. 2. Major Strategy #12 - Plan Horizons and Periodic Major Review: The Plan provides a tool for phasing the development of new Urban Village areas and gives highest priority to the location of new housing growth in the Downtown, connecting transit corridors, BART station area, and North San Jose. Analysis: The proposed rezoning to enable mixed-use development in the heart of Downtown promotes the above major strategies, because the project will contribute to Downtown as a residential neighborhood and employment area, and places residences and employment in Downtown near existing and future transit facilities.

6 Page 4 of 6 3. Land Use Policy LU-2.2: The City's Downtown Strategy plans for ambitious job and housing growth capacity in the Downtown area to reinforce its role as San Jose's civic, cultural and symbolic center and to support key infrastructure investments, including the planned BART and High-Speed Rail systems. 4. Land Use Policy LU-3.1: Provide maximum flexibility in mixing uses throughout the Downtown Area. Support intensive employment, entertainment, cultural, public/quasipublic, and residential uses in compact, intensive forms to maximize social interaction; to serve as a focal point for residents, businesses, and visitors; and to further the Vision of the Envision General Plan. Analysis: The rezoning would enable mixed-use development in the heart of Downtown promotes the above policies, in that: It places residential in close proximity to existing Light Rail and bus and future BART and High-Speed Rail transit facilities. It places commercial uses and a mixed-use bidlding along the street promoting pedestrian activity. It aligns with the Citygoal of more housing and commercial uses near transit. It contributes to the City's goal of mixing uses in Downtown. 5. Implementation Policy IP-1.6: Ensure that proposals to rezone and prezone properties conform to the Land Use/Transportation Diagram, and advance Envision General Plan vision, goals, and policies. Analysis: The Down town Primary Commercial Zoning District is the conforming zoning district for the Envision San Jose 2040 General Plan Land Use/Transportation Diagram's designation of Downtown, as indicated in the Zoning Ordinance. Rezoning the subject property to the DC Zoning District would allow for a mix of residential, commercial, or office development that is consistent with the intent of this designation, and thus, supporting the use of the property as envisioned under the General Plan. 6. Implementation Policy IP-8.2: Use the City's conventional zoning districts, contained in its Zoning Ordinance, to implement the Envision General Plan Land Use / Transportation Diagram. These districts include a range of allowed land uses, development intensities, and standards within major land use categories (residential, commercial and industrial) together with zoning districts for other land uses such as mixed-use and open space. The various ranges of allowed use and development intensity correspond generally to the respective Envision General Plan land use designations, while providing greater detail as to the appropriate land uses and form of development. Analysis: Consistent with this policy, the subject rezoning to the DC Downtown Primaiy Commercial Zoning District directly conforms to the General Plan's land use designation of Downtown.

7 Zoning Ordinance Conformance Page 5 of 6 The site is zoned CG Commercial General and R-M Multiple Residence which would not allow a mixed-use commercial and residential tower. The CG Zoning District allows office development by right, but mixed use residential/commercial would require a Conditional Use Permit and must conform to the more restrictive development regulations of CG. The R-M Zoning District would not allow the commercial component and therefore, the mixed-use requires. Any multiple dwelling can be built by right, but the height is limited to 45 feet or 3 stories with larger setbacks. Also, Figure 3: Zoning Designation Map both the CG and R-M Zoning Districts would require ample parking for these uses on the site which may not be feasible nor necessary given the site's proximity to transit. The DC Downtown Primary Commercial Zoning District would allow the applicant to propose a mixed-use residential and commercial tower without restrictive setback, height, or parking regulations, and the mixed multiple dwellings, offices, and commercial/retail are permitted by right. If this rezoning is approved, the property would be in conformance with the General Plan designation of Downtown and the project could proceed with a Site Development Permit proposing development consistent with development standards and allowable uses of the DC Zoning District. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) An Addendum to the Envision San Jose 2040 General Plan Final Impact Report (Resolution No ) was prepared for this project under the provisions of environmental review requirements of Title 21 of the San Jose Municipal Code implementing the California Environmental Quality Act of 1970, as amended, because the Greenhouse Gas Emissions section of the General Plan Final Program Environmental Impact Report (FEIR) was invalidated. The environmental impacts of this rezoning were found to be adequately analyzed, in all resource areas except for Greenhouse Gas Emissions, in an Addendum dated September 9, 2015 by the Envision San Jose 2040 General Plan FEIR because land uses authorized by the rezoning are consistent with the range of land uses assumed in the General Plan FEIR. At such time as the property owner desires to redevelop the property, further CEQA review may be necessary for any specific development project on the property. GHG analysis was conducted for a number of similar projects in the downtown area in the past few years. The per capita GHG emission, in all cases, was found to be well below the BAAQMD screening criteria. Since all of those sites are located within the downtown area, and have almost identical surrounding conditions, such as transit availability, it is highly likely that development on this site will not exceed the BAAQMD screening criteria.

8 File No. CI5-039 Cage 6 of 6 However, if future redevelopment of the site includes more intense uses, a GHG analysis will be required at the Site Development Permit stage to confirm that GHG emissions will be below BAAQMD thresholds. PUBLIC HEARING NOTIFICATION A notice of the public hearing was distributed to the owners and tenants of all properties located within 500 feet of the project site and posted on the City website, The staff report is posted on the City's website. Staff has been available to respond to questions from the public. Project Manager: Jennifer Pio/.ct Approved by: D» te: ' 4 \% I in» Division Manager for Harry Freitas, Planning Director Attachments: Exhibit B: Plat Map Draft Ordinance Owner: SJSC Properties, LLC 101 l sl Street, Suite 128 Los Altos, CA Applicant; Xiaog Li, SJSC Properties, LLC st Street, Suite 128 Los Altos. CA 94022

9 S 29 54'02" E ' Z bj 2 Cu 0 1 U-l >, bj Q b_l DC bj 01 Q t b_ o F O oc o a. LU DC b-1 W, O QA F ' d z (D b~) o ra z co F o cn CL z o LU CQ X LU t) 00 < Q c/> i 00 uo z CM LU 00 in CD o CD 61,594 SF± ACRES± (N 00 IT) LT) CM 00 LT) CD O o O CD CO LU DC I in x C I DC > X I O z < o < LU N 29 53'56" W ' NORTH FOURTH STREET (80' RIGHT OF WAY) CITY OF SAN JOSE COUNTY OF SANTA CLARA STATE OF CALIFORNIA Bkr was D U r Si N,sr C#UF0RNIA BLVa Subiect rkori/boundary WALNUT CREEK, CA Job No ENGINEERS / SURVEYORS PLANNERS A ' SHEET 1 OF J 92! (FAX) ^ Dote 07/29/15 Chkd.BR.

10 RD:VMT:JMD 09/10/2015 ORDINANCE NO. AN ORDINANCE OF THE CITY OF SAN JOSE REZONING CERTAIN REAL PROPERTY OF APPROXIMATELY 1.4 ACRES ON THE NORTHWESTERLY CORNER OF EAST SANTA CLARA STREET AND NORTH 5TH STREET (33 NORTH 5TH STREET) FROM THE CG COMMERCIAL GENERAL AND R-M MULTIPLE RESIDENCE ZONING DISTRICTS TO THE DC DOWNTOWN PRIMARY COMMERCIAL ZONING DISTRICT WHEREAS, all rezoning proceedings required under the provisions of Chapter of Title 20 of the San Jose Municipal Code have been duly had and taken with respect to the real property hereinafter described; and WHEREAS, pursuant to Section of the CEQA Guidelines, the City of San Jose has determined that the proposed rezoning is pursuant to, in furtherance of and within the scope of the previously approved program evaluated in the Final Program Environmental Impact Report for the Envision San Jose 2040 General Plan (the "FEIR"), for which findings were adopted by City Council through its Resolution No on November 1, 2011, as addended for the evaluation of greenhouse gas emissions, and does not involve new significant effects beyond those analyzed in the FEIR; and WHEREAS, on September 23, 2015, the Planning Commission held a duly noticed public hearing to consider the addendum to the FEIR on the proposed rezoning and the proposed rezoning and recommended to the Council the approval of the FEIR addendum and the rezoning; and WHEREAS, the City Council of the City of San Jose is the decision-making body for the proposed subject rezoning to the DC Downtown Primary Commercial Zoning District; and WHEREAS, this Council of the City of San Jose has considered and approves the information contained in the FEIR and related City Council Resolution No and addendum thereto prior to acting upon or approving the subject rezoning. T / doc 1 Council Agenda: Item No.: DRAFT - Contact the Office of the City Clerk at (418) or CityClerk@sanjoseca.gov for final document.

11 RD:VMT:JMD 09/10/2015 NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN JOSE: SECTION 1. The recitals above are incorporated herein. Section 2. All that real property hereinafter described in this section, hereinafter referred to as "subject property," is hereby rezoned as DC Downtown Primary Commercial Zoning District. The subject property referred to in this section is all that real property situated in the County of Santa Clara, State of California, described in Exhibit "A" attached hereto and incorporated herein by this reference. SECTION 3. The district map of the City is hereby amended accordingly. SECTION 4, The land development approval that is the subject of City is subject to the operation of Part 2.75 of Chapter of Title 15 of the San Jose Municipal Code. The applicant for or recipient of such land use approval hereby acknowledges receipt of notice that the issuance of a building permit to implement such land development approval may be suspended, conditioned or denied where the City Manager has determined that such action is necessary to remain within the aggregate operational capacity of the sanitary sewer system available to the City of San Jose or to meet the discharge standards of the sanitary sewer system imposed by the California Regional Water Quality Control Board for the San Francisco Bay Region.

12 RD:VMT:JMD 09/10/2015 PASSED FOR PUBLICATION of title this day of, 2015 by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: ATTEST: 1 SAM LICCARDO Mayor TONI J. TABER, CMC City Clerk