SAN IPSE CAPITAL OF SILICON VALLEY

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1 jtrr*. CITY OF ff: J 2k SAN IPSE CAPITAL OF SILICON VALLEY COUNCIL AGENDA: 11/15/16 IT : «Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Planning Commission SUBJECT: SEE BELOW DATE: October 26, 2016 COUNCIL DISTRICT: 3 SUBJECT: C CONVENTIONAL REZONING FOR THREE PARCELS WITH AN R-M MULTIPLE RESIDENCE ZONING DISTRICT AND TWO PARCELS WITH THE LI LIGHT INDUSTRIAL ZONING DISTRICT TO THE PQP PUBLIC/QUASI-PUBLIC ZONING DISTRICT ON FIVE PARCELS TOTALING 1.45 GROSS ACRES LOCATED ON THE EAST SIDE OF NORTH 5 th STREET BETWEEN JACKSON STREET AND EAST EMPIRE STREET (APNS: , , , , ). RECOMMENDATION The Planning Commission voted to recommend that the City Council consider and adopt the Addendum to the Envision San Jose 2040 General Plan Final Program Environmental Impact Report (Resolution No ) and the Supplemental Environmental Impact Report (Resolution No ), in accordance with the California Environmental Quality Act and recommended approval of the Conventional Rezoning, as described in the attached staff report and as recommended by staff. OUTCOME Should the City Council consider and approve the Addendum and Rezoning, the PQP /Quasi- Zoning District would allow publicly serving land uses such as schools, colleges, research institutions and private uses, such as private schools and daycare centers in conformance with the sites' General Plan Land Use/Transportation Diagram designation of PQP /Quasi-. BACKGROUND On October 12, 2016, the Planning Commission held a public hearing to consider the Addendum to the Envision San Jose 2040 General Plan Final Program Environmental Impact Report (Resolution No ) and the Supplemental Environmental Impact Report (Resolution No ) and the proposed Rezoning. The project was on the Consent Calendar. There was no public comment, and the Commissioners made no comment on the item. The Planning Commission recommended the City Council approve the Addendum and proposed Rezoning by a vote of

2 HONORABLE MAYOR AND CITY COUNCIL October 26, 2016 Subject: File No. C Page 2 ANALYSIS A complete analysis of the issues regarding this project, including Envision San Jose 2040 General Plan conformance, is contained in the attached Planning Commission Staff Report. EVALUATION AND FOLLOW UP If the Rezoning is approved, the PQP /Quasi- Zoning District would allow publicly serving land uses such as schools, colleges, research institutions and private uses, such as, private schools and daycare centers in conformance with the site's General Plan land use designation of PQP /Quasi-. PUBLIC OUTREACH Staff followed Council Policy 6-30: Outreach Policy in order to inform the public of 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. The rezoning was also published in a local newspaper, the Post Record. This memorandum is posted on the City's website. Staff has been available to respond to questions from the public. COORDINATION Preparation of this memorandum has been coordinated with the City Attorney's Office. CEOA An Addendum to the Envision San Jose 2040 General Plan Final Program Environmental Impact Report (Resolution No ) and the Supplemental Environmental Impact Report (Resolution No ) was prepared for the project under the provisions of the environmental review requirements, the California Environmental Quality Act of 1970, as amended, including the state and local implementing regulations. A complete analysis is contained in the attached staff report. /s/ HARRY FREITAS, SECRETARY Planning Commission For questions, please contact Planning Official, Steve McHarris, at (408) Attachments: Planning Commission Staff Report

3 PC AGENDA: ITEM: 3.c. SAN JOSE CAPITAL OP SILICON VALLEY PLANNING COMMISSION STAFF REPORT File No.: C Applicant: Rob Hikido Location: East side of North 5 th Street between Jackson Street and East Empire Street (566 North 5 th Street and 575 North 6 th Street; APNs: , , , , ) Existing Zoning: R-M Multiple Residence and LI Light Industrial Council District: 3 Historic Resource: Yes Annexation Date: Original City; March 27,1950 CEQA: Addendum to the Envision San Jose 2040 General Plan Final Program EIR (Resolution No ) and Supplemental EIR to the Envision San Jose 2040 General Plan Final Program EIR (Resolution No ). APPLICATION SUMMARY: Conventional Rezoning of three parcels with an R-M Multiple Residence Zoning District and two parcels with the LI Light Industrial Zoning District to the PQP /Quasi- Zoning District on five parcels totaling 1.45 gross acres. RECOMMENDATION: Staff recommends that the Planning Commission recommend approval of the proposed rezoning to the City Council. PROJECT DATA GENERAL PLAN CONSISTENCY General Plan Designations /Quasi- and Mixed-Use Commercial 1X1 Consistent O Inconsistent Consistent Policies Land Use Policy LU-1.8; Implementation Policy IP-1.6 and IP-8.2 Inconsistent Policies None SURROUNDING USES General Plan Land Use Zoning Existing Use North Mixed-Use Commercial R-M and CN Single-family house and church use South Residential Neighborhood R-M and LI Single-family houses East Mixed Use Neighborhood A(PD) Mixed-use development and Urban Residential West Mixed-Use Commercial and /Quasi- R-M Commercial uses and singlefamily houses

4 PROJECT DESCRIPTION File No. C Page 2 of 7 On June 3, 2016, a rezoning application was filed to rezone three properties located on the east side of North 5 th Street between Jackson Street and East Empire Street from R-M Multiple Residence to PQP /Quasi- and two properties located on the west side of North 6 th Street between Jackson Street and East Empire Street from LI Light Industrial to PQP /Quasi- (Table 1). The project site is located within the Japantown Neighborhood Business District. The applicant has indicated a desire to start a childcare use at two of the subject sites; however, there is no development application, other than this rezoning, on file at this time. Table 1: Existing General Plan/Zoning District and Proposed Zoning District Site APN Existing General Plan Existing Zoning Proposed Zoning /Quasi- R-M Multiple Residence District PQP /Quasi /Quasi- R-M Multiple Residence District PQP /Quasi /Quasi- R-M Multiple Residence District PQP /Quasi Mixed Use Commercial LI Light Industrial PQP /Quasi /Quasi- LI Light Industrial PQP /Quasi-

5 File No. C Page 3 of 7 The surrounding zoning districts include R-M Multiple Residence Zoning District, A(PD) Planned Development Zoning District, LI Light Industrial Zoning District, and CN Commercial Neighborhood Zoning District. The three properties located off North 5 th Street currently contain a church building and the associated surface parking lot. The two properties located off North 6 th Street contain two surface parking lots (Figure 2). The project is surrounded by a mixture of commercial and residential uses. The commercial uses range from restaurants, retail and offices. The residential uses range from multi-family housing to single-family houses. Existing commercial uses Existing church use Existing parking lots Existing commercial uses Existing residential uses Figure 2: Surrounding Uses ANALYSIS The proposed project was analyzed for conformance with the following: 1) the Envision San Jose 2040 General Plan and 2) Zoning Ordinance, and 3) the California Environmental Quality Act (CEQA). Envision San Jose 2040 General Plan Conformance The project site is located within the Japantown Neighborhood Business District. The subject properties have a General Plan land use designation of PQP /Quasi- and MUC Mixed Use Commercial (Figure 3). Properties with a PQP /Quasi- General Plan land use designation are used to designate public land uses and some private activities. The private activities include, but are not limited to: private schools, daycare centers, and private community gathering facilities (including those used for religious assembly). Properties with a MUC Mixed Use Commercial General Plan land use designation are intended to accommodate a mix of commercial and residential uses with commercial uses acting as the primary use and the residential uses acting as a secondary use, and does allow medium scale private community gathering facilities.

6 File No. C Page 4 of 7 The project site is located within the Japantown Neighborhood Business District. The subject properties have a General Plan land use designation of PQP /Quasi- and MUC Mixed Use Commercial (Figure 3). The rezoning would support the following General Plan policies: Land Use Policy LU-1.8: Preserve existing /Quasi- lands in order to maintain an inventory of sites suitable for Private Community Gathering Facilities, particularly within the Residential Neighborhoods, Urban Villages and commercial areas, and to reduce the potential conversion of employment lands to non-employment use. Analysis: The proposed rezoning from the R-M Multiple-Residence Zoning District to PQP /Quasi- Zoning District will bring three properties into conformance with the General Plan Land Use designation. The existing use of these properties is a church. The proposed rezoning from the LI Light Industrial Zoning District to the PQP /Quasi- Zoning District will bring two properties into greater conformance with the General Plan in that the PQP /Quasi- Zoning District more closely aligns with the General Plan land use designation of MUC Mixed Use Commercial than the LI Light Industrial Zoning District. The existing use of these two properties is two surface parking lots. The proposed project is increasing the supply of PQP /Quasi- zoned properties in the city and is appropriately located in a residential and commercial area. 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.

7 File No. C Page 5 of 7 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: The proposed rezoning would utilize a conventional zoning district to implement the /Quasi- land use designation for four parcels, as envisioned by the General Plan. The parcel containing the General Plan land use designation of MUC Mixed Use Commercial does not have a specific conforming zoning district in the Zoning Code. This parcel is currently zoned LI Light Industrial and rezoning it to PQP /Quasi- will bring the parcel into greater conformance with the General Plan because the PQP /Quasi- Zoning District more closely aligns with the MUC Mixed Use Commercial General Plan land use designation, which allows private gathering facilities. The proposed rezoning from R-M Multiple Residence Zoning District to PQP /Quasi- Zoning District supports the goals of the PQP /Quasi- General Plan land use designation as it would bring four properties into conformance with the General Plan Land Use designation of PQP /Quasi-. The rezoning from LI Light Industrial Zoning District to PQP /Quasi- Zoning District would bring the property into greater conformance with the General Plan land use designation of MUC Mixed Use Commercial. Per Table (Conformance with the General Plan) contained in the San Jose Municipal Code, the conforming zoning district to the PQP /Quasi- General Plan land use designation is PQP /Quasi-. However, there is no conforming zoning district for the MUC Mixed Use Commercial General Plan Land Use designation. The LI Light Industrial Zoning District is intended for a wide variety of industrial uses and excludes uses with unmitigated hazardous or nuisance effects. Examples of uses in the LI Light Industrial Zoning District are warehousing, wholesaling, light and medium manufacturing and hazardous materials storage facility. The PQP /Quasi- Zoning District is intended to provide publicly and privately serving uses such as, but not limited to: schools, libraries, fire stations, daycare centers and private community gathering facilities, including those usedfor religious assembly. As described previously, the MUC Mixed Use Commercial General Plan Land Use designation is intended to accommodate a mix of commercial and residential uses with an emphasis on commercial activity as the primary use and residential activity allowed in a secondary role. Appropriate commercial uses include neighborhood retail, mid-rise office and medium scale private community gathering facilities. The types of land uses in the PQP /Quasi- Zoning District more closely aligns with the envisioned land uses in the MUC Mixed Use Commercial General Plan Land Use designation. All five properties proposed with this rezoning application are owned by the church. The property located between the two surface parking lots is not part of this rezoning application. Staff had suggested that this property also be included in the application to complete the mid-block zoning configuration, however, the property owner elected not to move forward with this property at this time.

8 Zoning Ordinance Conformance File No. CI6-027 Page 6 of 7 The PQP /Quasi- zoning district restricts retail activity and is intended for public and private serving uses. Though there are no other development applications on file at this time, rezoning the five properties would support and facilitate existing church uses. Church uses require a Special Use Permit in the PQP /Quasi- zoning district. Under the PQP /Quasi- zoning district, the existing church building currently complies with the front setback requirement of 10 feet but does not comply with the side, interior and rear, interior setback requirement of 10 feet. Should the rezoning be approved by the City Council, the building would be considered legal non-conforming. If the rezoning is approved by the City Council, the PQP /Quasi- Zoning District would allow for a publicly serving land uses such as schools, colleges, research institutions and private uses, such as, private schools, daycare centers in conformance with the sites' General Plan Land Use designation of PQP /Quasi-. Per Table contained in Section of the San Jose Municipal Code, conforming zoning district to the PQP /Quasi- General Plan Land Use designation is PQP /Quasi- Zoning District. The MUC Mixed Use Commercial General Plan Land Use designation allows for commercial and residential activities, with the commercial uses acting as the primary and residential uses acting as the secondary uses. Commercial activities allowed in this General Plan Land Use designation include, but not limited to the following: neighborhood retail, mid-rise office and medium scale private community gathering facilities. Per Table contained in Section of the San Jose Municipal Code there is no conforming zoning district to the MUC Mixed Use Commercial General Plan Land Use designation. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) An Addendum to the Envision San Jose 2040 General Plan Final Program Environmental Impact Report (Resolution No ), and the Supplemental Environmental Impact Report (Resolution No ) was prepared for the project under the provisions of the environmental review requirements, the California Environmental Quality Act of 1970, as amended, including the state and local implementing regulations. The CEQA Guidelines Section states that when an EIR has been certified, no subsequent EIR shall be prepared for that project unless the lead agency determines that either substantial changes are proposed to the project which will require major revisions to the previous EIR, or new information of substantial importance is available. For APNs , -024, -025, and -026, the proposed rezoning to PQP /Quasi- Zoning District shall provide consistency with the current General Plan designation of PQP /Quasi- and, therefore, shall be in conformance with the Envision San Jose 2040 General Plan. For APN , the City's Zoning Ordinance did not identify a General Plan conforming zoning district for MUC Mixed Use Commercial. The proposed rezoning from LI Light Industrial Zoning District to PQP /Quasi- Zoning District, however, shall provide an environmentally less intensive land use and would not result in any impacts beyond those identified in the previously identified certified EIRs. Given the proposed project description and knowledge of the project area, the City has concluded that the proposed project would not result in any new impacts beyond those previously identified certified EIRs. Additionally, the proposed rezoning would not result in a substantial increase in the magnitude of any significant environmental impacts previously identified in the previously certified EIRs; nor have any new mitigation measures or alternatives which are considerably different from those analyzed in the EIRs been identified. For these reasons, a supplemental or subsequent EIR is not required and an addendum to the EIRs has been prepared and the City of San Jose may take action on the proposed project as being within the scope of the Final Program EIR.

9 File No. CI6-027 Page 7 of7 PUBLIC HEARING NOTIFICATION In order to inform the public of the proposed project, staff followed City Council Policy 6-30: Outreach Policy. 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 slaff report is also posted on the City's website. Stall has been available to respond to questions from the public. Project Manager: Tracy Tam Approved by: A j, Planning Official for Harry Freitas, Planning Director Di,tc: \ojaiw> Jmfpiw* Attachments: Exhibit A: Draft Ordinance Exhibit D: Plot I 1 lan Exhibit C: Addendum Owner: Applicant: Wesley United Methodist Church Rob Tlikido 566 North 5 lh Street Hudson Drive, San Jose, CA San Jose, CA 95124

10 File No. C ORDINANCE NO. AN ORDINANCE OF THE CITY OF SAN JOSE REZONING CERTAIN REAL PROPERTIES SITUATED AT THE EAST SIDE OF NORTH 5 th STREET BETWEEN JACKSON STREET AND EAST EMPIRE STREET FROM THE R-M MULTIPLE RESIDENCE ZONING DISTRICT TO THE PQP PUBLIC/QUASI-PUBLIC ZONING DISTRICT AND REZONING CERTAIN REAL PROPERTIES SITUATED ON THE WEST SIDE OF NORTH 6 STREET BETWEEN JACKSON STREET AND EAST EMPIRE STREET FROM THE L! LIGHT INDUSTRIAL ZONING DISTRICT TO THE PQP PUBLIC/QUASI-PUBLIC ZONING DISTRICT TOTALING APPROXIMATELY 1.45 ACRES. 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 prepared an Addendum to the Envision San Jose 2040 General Plan Environmental Impact Report and determined that the proposed rezoning is pursuant to or in.furtherance of the Envision San Jose 2040 General Plan FEIR, for which findings were adopted by City Council through its Resolution No on November 1, 2011 and the Envision San Jose General Plan 2040 Supplemental Environmental Impact Report Greenhouse Gas Emission Analysis (SEIR), for which findings were adopted by City Council through its Resolution No on December 15, 2015; and WHEREAS, the City Council of the City of San Jose is the decision-making body for the proposed subject rezoning to the PQP /Quasi- Zoning District; and WHEREAS, this Council of the City of San Jose has considered and approves said Addendum to the FEIR and SEIR and related City Council Resolution No and Resolution No prior to taking any approval actions on this project. NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN JOSE: SECTION 1. All that real property hereinafter described in this section, hereinafter referred to as "subject site," is hereby rezoned as PQP /Quasi- Zoning CC Agenda: Item #

11 File No. C District. The subject site referred to in this section is all that real property situated in the County of Santa Clara, State of California, described in Exhibit "B" attached hereto and incorporated herein by this reference. SECTION 2. The district map of the City is hereby amended accordingly. SECTION 3. The land development approval that is the subject of City File No. C 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. PASSED FOR PUBLICATION of title this 1 st day of November, 2016 by the following vote:. AYES: NOES: ABSENT: DISQUALIFIED: ATTEST: SAM LICCARDO Mayor TONI J. TABER, CMC City Clerk 2 Council Agenda: Item No.: DRAFT - Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

12 File No. C Council Agenda: Item No.: DRAFT - Contact the Office of the City Clerk at (408) or CityCIerk@sanjoseca.gov for final document.

13 NORTH SIXTH STREET I I «> I i I o» J? o 0> «o <*> n: 5? <0 lc> S3Cf 36' 14" E N30 36'f2"w 3.97' O «\i J? 0 0>»o <0 n; «> \ 90 S 30 36' 12' E ol v. <o ^ IV, <*» o n: 0> «rj 5 30*36't4 "E N 30'36 '12" W ' > 0> O Oj I I N. o * S i~ _ o '9.2 QJ <D *> o U I lfc.1- o p o o 0-,6.- I CO I- O O 1^- CM O h- O, *o CO «to J 8 8 < <u Is S -o 8 6: s.z <0 o S o CM Ug f; 01 N- C> co'rrj m «vg CM-o CVJ Jo <*> nj Ppjnliof Beginning J? *Vi 0v <o <o o TJ.- C *- (s J 83 S SWHITE 3 ^l^fiook A O 5: 0> I'd *2 -O Ui» BLOCK 18 ADDITION OF MAPS TP & 73 /V 30' 36 11W NORTH FIFTH PLAT MAP Re-zoning Application Lesley United Methodist Church April 2016 Scale: l" = 60'

14 CITY OH CAPITAL OP SILICON VALLEY Department of Planning, Building and Code Enforcement MARRY FREITAS, DIRECTOR ADDENDUM TO ENVISION SAN JOSE 2040 GENERAL PLAN FINAL PROGRAM ENVIRONMENTAL IMPACT REPORT AND SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT - GREENHOUSE GAS EMISSIONS (SCH# ), Pursuant to Section of the CEQA Guidelines, the City of San Jose lias prepared an Addendum to the Envision Sail Jose 2040 General Plan Final Program Environmental Impact Report and Envision San Jose 2040 General Plan Supplemental Environmental Impact Report because minor changes made to the project, as described below, do not raise important new issues about the significant impacts on the environment. Project Name: 5 th Street Japantown Rezoning File Number: CI6-027 Project Description: The project proposes a Conventional Rezoning on five parcels totaling 1,45 gross acres to the following: Site A ("Assessor's Parcel Numbers (APNs) and -261:» Current General Plan designation of PQP /Quasi and proposes rezoning from RM Multiple Residence District to PQP /Quasi Zoning District Site B (APN : Current General Plan designation of PQP /Quasi and proposes rezoning from LI Light Industrial Zoning District to PQP /Quasi Zoning District Site C CAPN ): Current General Plan designation of MUC Mixed Use Commercial and proposes rezoning from LI Light Industrial Zoning District to PQP /Quasi Zoning District Location: The project site is located along the street frontages of N. 5 th Street and N. 6 lh Street and between Jackson Street & E. Empire Street. Council District: 3 Assessor's Parcel Numbers: , -24, -25, -26, and -50 1

15 The environmental impacts of this project were addressed by the following Environmental Impact Reports (EIRs): the Envision San Jose 2040 General Plan Final Program EIR adopted by City Council Resolution No on November 1,2011 (SCH # ) and the Envision San Jose General Plan 2040 Supplemental Environmental Impact Report-Greenhouse Gas Emission Analysis (SEIR) adopted by City Council Resolution No on December 15, 2015 (SCH # ). The proposed project is eligible for an addendum pursuant to CEQA Guidelines 15164, which states that, "A lead agency or responsible agency shall prepare an addendum to a previously certified EIR if some changes or additions are necessary but none of the conditions described in CEQA Guidelines calling for preparation of a subsequent EIR have occurred." The following impacts were reviewed and found to be adequately considered by the EIRs: ^Aesthetics ^Biological Resources ^Greenhouse Gas Emissions ] Land Use jpopulation and Housing ]Transportation/Traffic 3Growth Inducing ^Agriculture Resources ^Cultural Resources 3Hazardous Materials ^Mineral Resources 3 Services ^Utilities & Service Systems 3Cumulative Impacts I^Air Quality ^Geology and Soils ^Hydrology & Water Quality [XjNoise ^Recreation [XjEnergy ^Mandatory Findings of Significance ANALYSIS The proposed rezoning would not result in any new or substantially increased significant impacts beyond those previously identified in the Envision San Jose 2040 General Plan FPEIR, and the Envision San Jose 2040 General Plan SEIR. For sites A and B, the proposed rezoning to PQP /Quasi Zoning District shall provide consistency with the current General Plan designation of PQP /Quasi and, therefore, shall be in conformance with the Envision San Jose 2040 General Plan. For Site C, the City's Zoning Ordinance did not identify a General Plan conforming zoning district for MUC Mixed Use Commercial. The proposed rezoning from LI Light Industrial Zoning District to PQP /Quasi Zoning District, however, shall provide an environmentally less intensive land use and would not result in any impacts beyond those identified in the previously identified certified EIRs. Given the proposed project description and knowledge of the project area, the City has concluded that the proposed project would not result in any new impacts beyond those previously identified certified EIRs. Additionally, the proposed rezoning would not result in a substantial increase in the magnitude of any significant environmental impacts previously identified in the previously certified EIRs; nor have any new mitigation measures or alternatives which are considerably different from those analyzed in the EIRs been identified. For these reasons, a supplemental or subsequent EIR is not required and an addendum to the EIRs has been prepared and the City of San Jose may take action on the proposed project as being within the 2

16 scope of the Final Program E1R. This addendum will not be circulated for public review, but be attached to the EIRs, pursuant to CEQA Guidelines 15164(c). QCj /Q\ \to[ C? Date 1 ' Deputy Project Manager: Kieulan Pham Harry Freitas, Director Planning, Building and Code Enforcement fl,