MINUTES REGULAR PLANNING COMMISSION MEETING JANUARY 13, 2015 CORTE MADERA COMMUNITY CENTER CORTE MADERA

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1 MINUTES REGULAR PLANNING COMMISSION MEETING JANUARY 13, 2015 CORTE MADERA COMMUNITY CENTER CORTE MADERA COMMISSIONERS PRESENT: STAFF PRESENT: Vice-Chair Peter Chase Commissioner Phyllis Metcalfe Commissioner Dan McCadden Commissioner Tom McHugh Commissioner Peter Schwartz Adam Wolff, Planning Director Phil Boyle, Senior Planner Christine O Rourke, Contract Planner Joanne O Hehir, Minutes Recorder 1. OPENING: A. Call to Order The meeting was called to order at 7:30 p.m. B. Pledge of Allegiance Vice-Chair Chase led in the Pledge of Allegiance. C. Roll Call All the commissioners were present. D. Swearing in of new Commissioner Commissioner Tom McHugh was sworn in by the Town Clerk, Rebecca Vaughn. 2. ELECTION OF CHAIR AND VICE-CHAIR MOTION: Motioned by Commissioner Schwartz to elect Vice-Chair Chase as Chair; Motioned by Vie-Chair Chase to elect and Commissioner Metcalfe as Vice-Chair: Ayes: Noes: Abstain: Absent: Chase, Metcalfe, McCadden, McHugh, Schwartz 3. PUBLIC COMMENT Peter Hensel, 138 Willow, noted that the public comment period for the EIR on the Corte Madera Inn project is nearing the end. He said that the Planning Commission extended the public comment period to 60 days and he encouraged the public to study Chapter 2 of the EIR, in particular, which reviews the proposed mitigations. Mr. Hensel also questioned the origination of Appendix G of the Housing Element.

2 2 Barbara Kristoff, 9 Ash, expressed her concern and confusion that zoning changes might be made to allow the Corte Madera Inn an opportunity to expand, which she said would be a problem. Ms. Kristoff asked for clarification. Planning Director Wolff responded to the comments and noted that Appendix G is an Appendix of the Draft EIR, as noted in the Table of Contents.. Mr. Wolff explained that amendments are being proposed by the applicant and would be required to facilitate the proposed expansion of the Corte Madera Inn. He noted it is a proposal at this stage and that the proposed amendments would need to be reviewed by the Planning Commission and Town Council at a later stage. He said that it was appropriate for the Draft EIR to describe all the necessary approvals that would be needed in order for the project to be built as the applicant envisions. Planning Director Wolff described the proposed General Plan and Zoning Ordinance Amendments. He said the proposed amendments would create a new Motel/Hotel Highway Commercial zone, which would facilitate a higher density to facilitate the hotel project. Vice-Chair Metcalfe noted that the current density for hotels is.34, but this was created after the hotels in Corte Madera were built. The FAR (floor area ratio) of the hotels is higher, so if a comparison is made, it should be made between the actual density and the proposed density. Richard Willis, 47 El Camino, said the applicant should provide a proposal that fits the Town s current rules and regulations, and that citizens should be able to review, understand and discuss a simplified document. In response to Chair Chase, Mr. Willis confirmed he had submitted comments on the Draft EIR on the Town s website. Phyllis Galanis, 215 Prince Royal, said that the applicant is requesting a zoning change and a taller building, and yet are proposing to remove the restaurant and use of their swimming pool by the Town s residents. Ms. Galanis requested that the applicants provide membership of the swimming pool to residents, since the Town does not have a pool of its own. Andre Pressis, 54 Crescent, said that he has lived in Corte Madera since 1981 and that he feels the residents are under attack from businesses that want to undertake development because it is a hot time for property. He said that they want to build whatever they wish and take their profits, while leaving the Town with gridlock, pollution and less parking. With the increase in density of the hotel, Mr. Pressis said that there will be more cars on the street and he is concerned that rural Marin is turning into San Francisco. He said that the hotel has the right not to offer membership of their pool to the public, but that they do not have the right to remove the duck pond. Furthermore, he said that the applicant should not be allowed General Plan Zoning changes when regular citizens are unable to build a second bathroom. Mr. Pressis asked the Town to defend its residents. In response to Angela Gott, who asked where the proposed hotel would be built, Chair Chase said that it would be built at the site of the Corte Madera Inn and advised her to visit the Town to review the plans. Chair Chase closed the public comment period.

3 3 4. CONSENT CALENDAR:. 5. PUBLIC MEETINGS A. To review the first draft of the Corte Madera s Housing Element and consider referral of the draft to the Corte Madera Town Council with recommended revisions, if applicable. Planning Director Adam Wolff introduced Contract Planner, Christine O Rourke, whom he said would be discussing some of the main issues in the Housing Element and the process. Mr. Wolff explained that the Housing Element states the Town s housing policy and its intentions and actions related to housing policy, development and preservation. Mr. Wolff noted that it is part of the Town s General Plan and, unlike other elements in the General Plan, the State required the Housing Element to be updated approximately every 8 years. He explained that the Housing Element must be submitted and reviewed by the California Department of Housing and Community Development (HCD) for compliance with the State s housing element law, which he discussed. Mr. Wolff said that the State s primary intention is to increase housing supply, affordability and choice throughout the State. He noted that all jurisdictions are required to submit their Housing Element for compliance by State law. Mr. Wolff described the process. He noted that the Town Council had directed staff to update the draft Housing Element for this cycle in March Two public meetings had been held in June 2014 and July 2014, where information had been provided about the Town s current housing needs, and public input had been taken, which Mr. Wolff noted is attached to the staff report. Mr. Wolff explained that, at the end of 2014, the Planning Commission reviewed Zoning Ordinance amendments, which are prerequisites in order to qualify for the State s streamline review, and relate to issues that include persons with disabilities, transitional housing and the State Density Bonus law. Mr. Wolff said that the Town Council should adopt the Zoning Ordinance Amendments at their next meeting on January 20 th, and that the Town should then qualify for a streamline review by HCD. Mr. Wolff said that they are presenting the first draft of the Housing Element update for , for which the 2011 Housing Element is being used as a base document to make edits and changes to submit to the State. He said that at least one presentation will be made to the Town Council in February, and that the purpose of the tonight s meetings is to listen to any additional comments that there may be and make revisions that will be forwarded to the Town Council for their review. Mr. Wolff said that enough time must be allowed for HCD s maximum 60-day review of the Housing Element, before it is returned for review by the Planning Commission and adopted by the Town Council before May 31, If this happens, then Corte Madera will not need to update the Housing Element for 8 years and, if it is not accepted by HCD and adopted before May 31, 2015, a 4-year cycle will apply. Chair Chase and Mr. Wolff discussed the timeline in submitting the Housing Element to HCD. Mr. Wolff said that they hoped the Housing Element would be ready to submit to HCD after incorporating any amendments from tonight s meeting and the Town Council s meeting on February 3 rd. He noted that the document could be reviewed again, if necessary, at the Town Council s meeting on February 17 th, which would still be possible in order to meet the 60-day review period. Mr. Wolff said that he hoped by the end of the public meetings, consensus can

4 4 be reached whereby the document can be amended before being submitted to HCD and adopted on its return without fanfare. Christine O Rourke discussed the problem of affordable housing in the Bay Area, including Marin County, which she noted is out of reach for many people. She said that the implications include increased emissions because workers have to travel further to find affordable housing, and young families and longtime residents are priced out of the market for their home towns and need to move to more affordable communities. Ms. O Rourke noted that the Town is limited in how much affordable housing it is able to accommodate. She said that the Town has limited land, that it is approaching build-out and that some of the remaining sites are on steep parcels. Ms. O Rourke said that the primary opportunities to develop affordable housing are through the development of limited sites and second units, which the Town is relying upon in the draft Housing Element to accommodate the Town s Regional Housing Needs Allocation (RHNA). Ms. O Rourke said that, under RHNA, towns need to provide sufficient, appropriately zoned land for new housing to address population growth and job generation. She noted that the Town did not have to provide the housing or finance housing. Ms. O Rourke explained how the units were allocated to the towns and counties in California, and she noted that Corte Madera was allocated a relatively low number of 72 units by ABAG (Association of Bay Area Governments). Ms. O Rourke provided background information on RHNA and the housing element cycles, which began in She noted that the Town was assigned 244 units in the last cycle, and the number has dropped by approximately 70% for the new cycle. Ms. O Rourke discussed the provision of affordable housing in the unit quota, which included 22 units that are affordable to very low income households. She noted that affordable housing costs, which included rent and utilities, or mortgage costs, could not amount to more than 30% of a household s annual gross income. Ms. O Rourke noted that the income categories were based on median income, which she said is $97,000 for a 4-member household in Marin and she discussed the very low, low and moderate income categories in relation to the median income. Ms. O Rourke went on to discuss the statutory requirements for Housing Elements, which she said are addressed in the draft Housing Element. She said that the draft Housing Element is based on the current Housing Element, which she discussed. Ms. O Rourke noted that a careful analysis has been undertaken on the demographic trends, projections and housing needs for Corte Madera, and she also discussed the constraints on housing development, which include the availability of financing. Ms. O Rourke discussed the site inventory that had been undertaken of the sites that are available for the planning period, and she noted that the Housing Element includes programs that are needed to promote housing opportunities and meet the RHNA requirement. Ms. O Rourke discussed the streamline review process of the Housing Element by HCD, which she said should create a more transparent and efficient process. Ms. O Rourke said that the process included the requirement that the existing Housing Element is certified and

5 5 that the draft Housing Element complies with State Law, which she discussed. Ms. O Rourke discussed changes that have been made to the 2011 Housing Element to create the proposed draft Housing Element, and she noted that HCD will be reviewing those changes for compliance. She said that HCD should accept the housing opportunity sites that have been included in the draft Housing Element that were found to be in compliance in the 2011 Housing Element. Ms. O Rourke went on to discuss the key changes in the chapters of the draft Housing Element. The Housing Needs Analysis chapter includes updated data on population, employment trends, housing costs and affordability, and also on special needs population, which she discussed. Ms. O Rourke discussed demographic trends, when she noted that demographic trends had risen a little since She noted that they used ABAG s 2013 projections to study job growth, which shows a slower growth rate than population growth over 30 years, which she discussed. She noted that most of the job growth is projected to come from industries that include financial services and professional industries and that growth is not anticipated in the retail industry. Ms. O Rourke discussed age group trends, which show that the proportion of the senior population will increase the most if the countywide projections are correct. Ms. O Rourke confirmed that the analysis has concluded that Corte Madera does require some additional housing and that the aging population will require smaller and more flexible options, such as second units, which would produce additional income for seniors so that they can stay in their home. Ms. O Rourke discussed the changes to the Housing Constraints Chapter, which she said mainly comprise of updated information on non-governmental and governmental constraints. She said that most of the changes relate to issues such as providing zoning for emergency shelters and transitional housing, for which the Town has adopted Zoning Ordinance changes, in addition to adopting an Ordinance to implement the State Density Bonus law. For these reasons, Ms. O Rourke said that the Town is eligible for the streamline review of the Housing Element. Ms. O Rourke went on to discuss key changes to the Site Inventory and Analysis chapter, in which information has been updated on the same opportunity sites identified in the 2011 Housing Element. Ms. O Rourke explained how Corte Madera is able to meet its requirement to provide 72 units (including second units and single-family homes), which includes a site owned by the Town on Wornum Drive that could provide 25 units for low, very low and moderate income households. She noted that the Town could meet all the affordable housing requirements in all categories. Ms. O Rourke discussed the reasons why Corte Madera Square would not be suitable for potential affordable housing development (despite having an affordable housing overlay district), mainly because it is already developed. She noted that Corte Madera did not have any other sites that were appropriately zoned to accommodate a minimum of 20 units besides Wornum Drive.

6 6 Ms. O Rourke discussed the chapter on Key Changes to Goals, Policies and Programs, and she noted that the programs from the 2011 Housing Element had been revised or deleted if they had been implemented or were no longer relevant. She noted that new programs had been added, including programs on the preservation of multi-family rental housing, development in flood zones and second unit fees. Ms. O Rourke discussed a new program on junior second units, which allows the conversion of a bedroom to a second unit without expanding the footprint of a house. She noted that the parking requirements might be waived if sufficient parking existed on site or in the street. Ms. O Rourke used a slide presentation to show examples of junior second units. Ms. O Rourke discussed the next steps in the process to adopt the Housing Element by May 31, 2015, to qualify for an 8-year cycle. She noted that the she has been through two review periods with HCD for other jurisdictions and only minor changes were necessary, which she hoped would be repeated. Ms. O Rourke explained where the Housing Element could be found on the Town s website and she encouraged the public to submit their comments. In response to Commissioner Schwartz, Ms. O Rourke confirmed that the sites carried over into an 8-year development period are not required to be developed by the Town, but that the Town is required to identify sites that are available for development. She noted that the Town files an annual report with the State that describes the progress it is making in getting the sites developed. Commissioner Schwartz and Mr. Wolff discussed the parking lot site at Old Corte Madera Square as a potential opportunity site. Mr. Wolff said it is not considered as a viable site for development because it is zoned for park and open space and is not part of the overlay district. Furthermore, Mr. Wolff said that there are several complicated agreements between the Town and the County related to ownership of the site, further complicating potential development on that site. In response to Commissioner Metcalfe, Mr. Wolff explained that the project at 1421 Casa Buena consists of three below market rate units in one block and that the fourth unit will be a market rate unit. He said that three below market rate units are sufficient to allow the developer to apply for the State Density Bonus. Commissioner McHugh said that he had reviewed the Housing Element and made comments, which Mr. Wolff suggested he pass on to staff to incorporate into the document. Chair Chase and Ms. O Rourke discussed adoption of the programs. Ms. O Rourke noted that each program had a timeline for adoption which is identified in the Housing Element, and that the Town is expected to report on the adoption of the programs in its annual report to the State. She said that failing to adopt the programs could affect review of the next Housing Element, particularly with carrying over a potential site included in this cycle. Chair Chase and Ms. O Rourke discussed the kind of developers who might be interested in Wornum Drive, where 50% of the units would be zoned below market rate. Ms. O Rourke envisioned a partnership, perhaps, between the Town and a non-profit developer.

7 7 In response to Chair Chase, who asked if Corte Madera Square would qualify for low income housing, Ms. O Rourke confirmed that the Affordable Housing Overlay District in Corte Madera Square requires all units built to be affordable, with 50% for moderate income, 30% very low and 20% for the low income category. Mr. Wolff noted that the Town is not proposing to utilize potential development in Old Corte Madera Square towards RHNA. Chair Chase opened the public comment period. Michael Harlock, 533 Redwood Avenue, asked why there was such focus on meeting the zoning requirements for the streamline process, and he said there is a general perception to push through the Housing Element without adequate review. In response, Mr. Wolff said the four Zoning Ordinance amendments are also required pursuant to housing element law.. He said that HCD will not certify the Housing Element without the emergency shelter ordinance. Furthermore, the Zoning Ordinance amendments would allow the Town to qualify for a streamline review of the Housing Element by HCD, which should be a more simplified, time-saving and less-costly process. Mr. Wolff noted that several public meetings on the Ordinance Amendments have occurred. Chair Chase noted that HCD will not require the Housing Element to be updated for 8 years, instead of 3 or 4 years, if it approves the proposed Housing Element under the streamline process. Patty Stoliar, Casas Buena Drive, asked if RHNA is affected by Corte Madera being nearly built out, and if other towns have been built out so as not to be able to accommodate the allotted units. In response, Mr. Wolff said that redevelopment is usually a possibility and he noted that the required number of units by RHNA has dropped to 72 in the next cycle indicating recognition of less available land for development. In response to Barbra Kristoff, 9 Ash Avenue, Mr. Wolff confirmed that Tam Ridge is also known as the Wincup project. David Kunhardt, 141 Hill Path, discussed his concern that the category on resource sites that might contribute towards housing in the long-term has been removed from the Housing Element. He said that it could have been a buffer in providing site opportunities for affordable units should the State find any of the identified sites to be unacceptable. Mr. Kunhardt discussed the reasons why he believed Old Corte Madera Square should be included as an opportunity site, one reason being that the current buildings would be suitable for additional second story units. He also thought some terminology in the Housing Element had been used incorrectly. In response, Mr. Wolff said that Mr. Kunhardt s comments about including Old Corte Madera Square as an opportunity site were fair, and that the Town might perhaps consider further analysis of those sites in the next 8 year planning period. However, he said that staff were confident that the sites identified are adequate to meet the RHNA requirement and that there is no reason to believe that the State would find fault with the opportunity sites identified in the Draft Housing Element.

8 8 Mr. Kunhardt said he still believed that the Town should have identified sites in the Housing Element that could be rezoned at a future date to provide additional housing units. He said he believed the State would look closely at the Housing Element because there is a moratorium in place. Fred Finkelstein, 132 Sandpiper Circle, Director of Casa Madera, discussed his concern that an Overlay District had been created for the Wincup project site, which has now been developed with 180 units. Mr. Finkelstein said that they are not happy that with the parking plan that has been provided and that visitors will use their street for parking. He also discussed traffic problems on Tamal Vista, and traffic impacts in their neighborhood from the Corte Madera Inn project if it expands. Mr. Finkelstein said that plans for the replacement of the movie theater with additional housing units should have been included in the Housing Element. In response, Chair Chase said that a proposal for the movie theater had not been received by the Town. Mr. Finkelstein discussed the Town s property at Wornum Drive and asked how it would be developed. In response, Mr. Wolff said that agreement would need to be reached with a developer about how it could be developed. Jim Andrews, Hickory, discussed his understanding that FAR (floor area ratio) is a guideline and not a legal right, and he asked if there was anything in the Housing Element and General Plan that would contradict his understanding. In response, Chair Chase said that the Housing Element is concerned with the number of units per acre and that FAR is a separate issue. Mr. Wolff said that there is language in the Zoning Ordinance related to certain districts, such as the R1 residential district, and that FAR is not intended to be a target to be achieved but a maximum. Mr. Kunhardt discussed inclusionary requirements. He suggested that the Town should amend its requirement for a development of 9 or more housing units to include 25% affordable housing to 20% in line with most other Marin towns. Mr. Kunhardt expressed concern that a project had been allowed increased density and he suggested that the 10% requirement in the Mixed-Use Gateway Overlay District be raised to 20%. In response, Mr. Wolff noted that the Mixed-Use Gateway Zoning District applies to one place in Town and that any other parcel requesting a 10% inclusionary requirement would need to be rezoned. Mr. Wolff said that the standard requirement is for 25%, but that the Draft Housing Element does note that this requirement deserves further consideration. He confirmed there were no in-lieu fees accepted for projects of 10 or more units. Jana Haehl, 499 Corte Madera, said that she strongly opposes the Mixed-Use Commercial Zone as it was applied to the Wincup project, where just 1% of the structure was devoted to commercial use. She said that a mixed-use zone, which includes the development of housing, should be split more evenly, perhaps 60/40 for example. Ms. Haehl said that most overlay districts are designed to keep the underlying standards of the initial zoning district,

9 9 and that she will strongly oppose any mixed-use districts where it is proposed that the new overlay standards take precedence over the underlying district standards. Chair Chase closed the public comment period. Vice-Chair Metcalfe thanked Mr. Wolff and Contract Planner O Rourke for the report, which she said is clear and concise. In response to Commissioner McCadden, Mr. Wolff said that the Village Shopping Center is not zoned for residential use, but that the General Plan designates it for mixed-use including housing. Chair Chase and Mr. Wolff discussed the actions that were needed before the draft Housing Element is presented to the Town Council. Mr. Wolff said that staff recommends the Planning Commission refer the draft Housing Element to the Town Council with their comments, recommendations and any revisions for their review. Mr. Wolff noted that therewill be further public meetings and that the Town Council will make the decision to refer the draft Housing Element to HCD. He suggested that if the Commissioners had any additional comments, they could be forwarded to the Town Council or incorporated into the draft Housing Element. MOTION: Motioned by Commissioner McHugh, seconded by Vice-Chair Metcalfe, to forward the Draft Housing Element to the Town Council for their review: Ayes: Noes: Abstain: Absent: Chase, Metcalfe, McCadden, and McHugh, Schwartz 6. ROUTINE AND OTHER MATTERS A. REPORTS, ANNOUNCEMENTS AND REQUESTS i.commissioners Chair Chase reported on the Town Council meeting he attended on January 6, 2015, when he noted that one of the subjects was rules and attendance requirements for planning commissioners. He said that he and Vice-Chair Metcalfe have created some basic guidelines for the commissioners, which include attendance requirements. Chair Chase suggested that the guidelines were included as a discussion item at the next Planning Commission meeting. Mr. Wolff said that they would list the discussion as a business item under the next agenda and Vice-Chair Metcalfe noted that the Town Council will need to ratify the changes. ii. Planning Director

10 10 Planning Director Wolff said that the Planning Commission had asked staff at the last Planning Commission meeting, related to 1421 Casa Buena, if they could impose greater parking requirements on a project that had met the minimum parking requirements. Mr. Wolff had not thought it was possible but, on reviewing the Code, the Planning Commission and Town Council can require any number of spaces that are thought to be necessary provided they make findings noting the reason for requiring additional parking above and beyond the minimum requirements. He said that he will ensure the Commissioners sentiment that the applicant should do all that is possible to include as much parking as possible is stated in the staff report for the Town Council. In response to Commissioner McCadden, Mr. Wolff read the Code section whereby findings could be made that require additional off-street parking spaces. In response to Chair Chase, Mr. Wolff said that he had spoken to the applicant about additional parking. They had discussed the possibility of finding parking within the front setback. Commissioner McCadden expressed his concern that they had set a precedent in allowing concessions for the Casa Buena project. Mr. Wolff noted that no significant evidence was brought forward to suggest that the concession were not justified, and that the concessions were allowed under the affordable housing law. He said that he would recirculate the resolution that was passed. Vice-Chair Metcalfe said she would suggest to the Town Council that a stop sign be added on the applicant s property at the entrance. A. MINUTES Vice-Chair Metcalfe discussed the amendments she had made to the minutes after they had been circulated to the Commissioners. i.planning Commission Meeting Minutes of December 9, 2014 and December 18, MOTION: Motioned by Vice-Chair Metcalfe, seconded by Commissioner McCadden, to approve the minutes of December 9, 2014, and December18, 2014, with the following amendment to page 9, paragraph 7 of the December 18 th minutes: Replace..He said he would have used shingles for the roof, and that he liked the pitch roof concept. ; with:-...the developer could have used asphalt shingles but he chose tile, and that he liked the pitch roof concept...

11 11 Ayes: Noes: Abstain: Absent: Chase, McCadden, Metcalfe McHugh Schwartz 6. ADJOURNMENT A motion was made, seconded and unanimously approved to adjourn the hearing at 9:55 p.m. The next Planning Commission Regular Meeting will be held on January 27, 2015, at 7:30 p.m. in the Corte Madera Council Chambers, 300 Tamalpais Drive.