EMERYVILLE PLANNING COMMISSION STAFF REPORT Shellmound Street Residential Project ( Nady Site ) Extension Request (UPDR14-003)

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1 EMERYVILLE PLANNING COMMISSION STAFF REPORT TO: FROM: Planning Commission Community Development Department Miroo Desai, Senior Planner Agenda Date: June 22, 2017 Report Date: June 15, 2017 SUBJECT: 6701 Shellmound Street Residential Project ( Nady Site ) Extension Request (UPDR14-003) PROJECT 6701 Shellmound Street LOCATION: (APN: ) APPLICANT: OWNER: PROJECT DESCRIPTION: GENERAL PLAN: ZONING DISTRICT: Anton Development Company, LLC 1415 L Street, Suite 450 Sacramento, CA Nady Trust U/D/T 11 Glen Alpine Road Piedmont, CA Consideration of a request for a two-year extension of a Conditional Use Permit and Design Review for a 186-unit residential development on a 2.27 acre site located at 6701 Shellmound Street that was approved by the Planning Commission on March 24, The project includes a Tree Removal Permit for removal of two street trees. Mixed Use with Residential Mixed Use with Residential (MUR) ENVIRONMENTAL STATUS: Final Environmental Impact Report certified by Planning Commission on March 24, 2016 RECOMMENDED COMMISSION ACTION: 1. To open the public hearing and take testimony regarding the extension request. 2. To close the public hearing and consider the staff report and Resolution. 3. Adopt Resolution CPC No. UPDR14-003/ Extension approving the requested extension. VI.B

2 Planning Commission Staff Report 6701 Shellmound Residential Project ( Nady Site) Extension Request June 22, 2017 Page 2 DISCUSSION On March 24, 2016, the Planning Commission approved a Conditional Use Permit and Design Review to construct the 6701 Shellmound Residential Project a 186-unit multi-family residential rental development on a 2.27-acre site at 6701 Shellmound Street (subsequently named Anton Evolve by the developer). The proposal is a six story tall structure facing Shellmound Street and seven stories tall on the western third of the lot facing I-80. The first two stories are a concrete podium structure containing automobile and bicycle parking, common rooms, leasing areas and some housing units. The upper stories are wood-frame. The project provides a mix of studio (10); one bedroom (82); two bedroom (66); and three bedroom (28) units. The project also involved removal and replacement of two street trees. The applicant now requests a two-year extension of the entitlements for the project. The applicant has been working diligently with the Alameda County Environmental Health (ACEH) Department to remediate the site. The ACEH has included additional site investigations and implementation of a remediation program to reduce site subsurface vapor concentrations. It is estimated that remediation will be complete by February 2018, and submission of a building permit application is anticipated by June 2018, which would be beyond the expiration date of a one-year extension in March Thus, a two-year permit extension is being requested. The applicant s request letter is attached to this staff report. As previously reported, Anton terminated their Purchase and Sale Agreement on March 18, 2017 and the property owner, John Nady, intended to go forward with the request to extend the entitlements as the applicant. Staff now understands that Anton and Mr. Nady are back in contract, and Anton is once again the applicant. The extension request was listed on the March 23, 2017 Planning Commission agenda but was continued to a future date because of the recent withdrawal of Anton from the project. At that meeting, several Commissioners noted that the site was in bad condition with trash, weeds, and graffiti, and that it needed to be cleaned up before the Commission could consider the extension request. In early June, the site was cleaned up and all trash, weeds, and graffiti were removed. STAFF FINDINGS Pursuant to Section (a) of the Emeryville Planning Regulations, unless the Planning Commission specifies otherwise, any conditional use permit and design review permit automatically expires unless an application for a building permit has been filed and fees have been paid within one year from the date of approval, which would be March 24, 2017 in this case. The applicant has requested approval for a two-year extension of the permits, until March 24, For reasons described above and in the attached letter, the applicant has not been able to file a building permit application within one year following the approval date.

3 Planning Commission Staff Report 6701 Shellmound Residential Project ( Nady Site) Extension Request June 22, 2017 Page 3 Section (b) of the Planning Regulations allows the Planning Commission to grant extensions to previously approved permits to a maximum of three years from the original approved date. In order to grant such a request, the Commission must make the following findings pursuant to Section (e): (1) That the permit holder has clearly documented that it has made a good faith effort to commence work upon the use; and (2) That it is in the best interest of the City of Emeryville to extend the permit; and (3) That there are no substantial changes to the project, no substantial changes to the circumstances under which the project is undertaken, and no new information of substantial importance that would require any further environmental review pursuant to the California Environmental Quality Act; and (4) That the permit holder is maintaining the property in compliance with all applicable City regulations. In staff s view, these findings can be made in this case. The delay has been attributable to the additional remediation work that is being required by the ACEH. It is clearly in the best interest of the City to extend this permit, as this project will provide a much needed residential project at one of the City s gateway sites. The applicant has also cleaned the site and removed graffiti. Finally, there are no circumstances that would require any further environmental review of the project, and the property is being maintained in conformance with applicable City regulations. RECOMMENDATION: Staff recommends that the Commission approve this request for a two-year extension, with a new expiration date of March 24, Attachments: 1. Applicant Permit Extension Request Letter 2. Resolution

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5 RESOLUTION CPC NO. UPDR14-003/ EXTENSION RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF EMERYVILLE GRANTING A TWO YEAR EXTENSION OF THE APPROVAL OF A CONDITIONAL USE PERMIT AND DESIGN REVIEW FOR A 186-UNIT RESIDENTIAL DEVELOPMENT ON A 2.27 ACRE SITE LOCATED AT 6701 SHELLMOUND STREET AND A TREE REMOVAL PERMIT FOR REMOVAL OF TWO STREET TREES (APN: ) WHEREAS, on November 7, 2014 Anton Development ( Applicant ) submitted an application for a Conditional Use Permit and Design Review for a proposed 211-unit rental residential project with 115 parking spaces in a six story structure on a site of approximately 2.27 acres bounded by an I-80 off-ramp to the west and north, Ashby Avenue (in an underpass) to the north, Shellmound Street and the railroad mainline to the east, and the Ex pression College campus to the south (the Project ); and WHEREAS, the Project was subsequently revised to include 186 units in a six- and seven-story structure; and WHEREAS, the Planning Commission held a duly and properly noticed public hearing on March 24, 2016 and approved the Project (Resolution No. UPDR14-003); and WHEREAS, the Applicant now requests an extension of their permits for two years as a result of the additional time needed to complete remediation work on the site; and WHEREAS, the Planning Commission held a duly and properly noticed public hearing on June 22, 2017 to review and consider the request for an extension and to solicit public comments; and WHEREAS, as part of the review and approval of the Project an Environmental Impact Report (EIR) was prepared under the requirements of the California Environmental Quality Act (CEQA), and prior to approving the Project the Planning Commission certified the EIR on March 24, 2016; and WHEREAS, the Planning Commission has reviewed and considered the request to extend UPDR along with the staff report dated June 22, 2017 and attachments thereto, and all public comments for the 6701 Shellmound Residential project ( the Record ); now therefore, be it RESOLVED, that in extending UPDR the Emeryville Planning Commission makes the findings as required by Emeryville Planning Regulations Section (e) as follows: (1) That the permit holder has clearly documented that it has made a good faith effort to commence work upon the use. The applicant has continued to work to remediate the site as required by the Alameda County Environmental Health (ACEH) department and submitted documents from ACEH indicating the need for additional remediation work. (2) That it is in the best interest of the City of Emeryville to extend the permit.

6 Planning Commission Staff Report Resolution UPDR14-003/Extension 6701 Shellmound Residential Project June 22, 2017 Page 2 It is clearly in the best interest of the City to extend this permit as this Project will provide much needed housing on one of the City s gateway sites that is currently underutilized. (3) That there are no substantial changes to the project, no substantial changes to the circumstances under which the project is undertaken, and no new information of substantial importance that would require any further environmental review pursuant to the California Environmental Quality Act. An Environmental Impact Report was prepared and certified for the project. Since that time, there have been no substantial changes to the Project, no substantial changes to the circumstances under which the Project is to be undertaken, and no new information of substantial importance that would require reevaluation of the exemption criteria. (4) The permit holder is maintaining the property in compliance with all applicable City regulations. The buildings on the site are currently vacant and the owner has fenced off the site to deter access by unauthorized individuals. All trash, weeds, and graffiti have been removed from the site and it is being maintained in compliance with applicable City regulations. and be it further RESOLVED, that the Planning Commission hereby grants a two-year extension of the Conditional Use Permit and Design Review approval (UPDR14-003) for the 6701 Shellmound Residential project, for a total period of three years from the effective date of the Planning Commission s final action on the project, that is, until March 24, APPROVED by the Planning Commission of the City of Emeryville at a regular meeting held on Thursday, June 22, 2017, by the following votes: AYES: NOES: ABSTAINED: EXCUSED: ABSENT: CHAIRPERSON APPROVED AS TO FORM: RECORDING SECRETARY ASSISTANT CITY ATTORNEY