6:00 P. M., TUESDAY, MAY 7, 2013

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1 CITY OF GRASS VALLEY CITY COUNCIL PLANNING COMMISSION JOINT STUDY SESSION Dan Miller, Mayor Jason Fouyer, Vice Mayor Lisa Swarthout Jan Arbuckle Howard Levine Ben Aguilar, Chairman Dawn Bateman Yolanda Cookson Don Coots Daniel Swartzendruber 6:00 P. M., TUESDAY, MAY 7, 2013 COUNCIL CHAMBERS GRASS VALLEY CITY HALL (LOWER LEVEL) 125 EAST MAIN STREET, GRASS VALLEY, CALIFORNIA Telephone: (530) Fax: (530) infocityofgrassvalley.com Web Site: wv.cityofgrassva11ey.com The City Council and Planning Commissions welcome you to their meeting. Your interest is encouraged and appreciated This meeting will be recorded on audio tape Council Chambers are wheelchair accessible and listening devices are available Other special accommodations may be requested to the City Clerk 72 hours in advance of the meeting. Action may be taken on any agenda item. Please turn off all cell phones 01 similar devices Agenda materials are available at City Hall, the Grass Valley Public Library or on the City s web site by clicking on each item s icon Staff reports and background information related to Study Session items are available at City of Grass Valley City Hall, 125 East Main Street, Grass Valley, CA Materials related to an item on this agenda submitted to the City Council and/or Planning Commission after distribution of the agenda packet are available for public inspection in the City Clerk s Office, 125 East Main Street, Grass Valley, CA 95945, during normal business hours. Such documents are also available on the City of Grass Valley website at subject to the City staffs ability to post the documents before the meeting. A. CALL TO ORDER: PLEDGE OF ALLEGIANCE: ROLL CALL (City Council and Planning Commission): IL 7tJJ{IA L IP [L Page 1 of

2 IL A joint study session with the City Council and Planning Commission to obtain a recommendation on preferred land use and zoning designations for Grass Valley southern Sphere of Influence. The purpose of this action is to provide a preferred land use mix which will be used to establish the project description for an Environmental Impact Report (EIR) This direction does not commit the City to any land use changes but will provide the information necessary to study the potential environmental impacts of potential land use changes and other potential alternatives in the southern Sphere of Influence. RECOMMENDATION: Review the attached maps, solicit comments from the public and provide direction on the preferred land uses that will be analyzed in the EIR. IL IIMI1U1 CITY OF GRASS VALLEY This agenda is hereby certified to have been posted as follows: DATE: TIME: CITY CLERK Page 2 of 2

3 City of Grass Valley City Council/Planning Commission Study Session Report Meeting Date: May 7, 2013 Date Prepared: May 1, 2013 Prepared by: Title: Thomas Last, Community Development Director A joint study session with the City Council and Planning Commission to obtain a recommendation on preferred land use and zoning designations for Grass Valley s southern Sphere of Influence. The purpose of this action is to provide a preferred land use mix which will be used to establish the project description for an Environmental Impact Report (EIR). This direction does not commit the City to any land use changes, but will provide the information necessary to study the potential environmental impacts of potential land use changes and other potential alternatives in the southern Sphere of Influence. Recommendations: Review the attached maps, solicit comments from the public, and provide direction on the preferred land uses that will be analyzed in the EIR. Background Information: On March 12, 2013, the City Council directed staff to move forward with the following: 1) An amendment to the General Plan Land Use Map for approximately 421 acres, which includes the area in the southern Sphere of Influence (SOl) on both the east and west sides of Highway 49; 2) A Prezone of approximately 140 acres of land on the east side of Highway 49; 3) An Annexation of approximately 140 acres of land within the near term annexation horizon located on the east side of Highway 49; and 4) Obtain request for qualifications for an EIR consultant. Since the March meeting, staff met with affected property owners and neighbors. Based on these meetings and previous input from the Council, staff has prepared proposed land use and zoning maps changes for the southern SOT. The proposed map changes, particularly on the east side of Highway 49, recognize and reflect existing industrial uses and activities Because of concerns raised by property owners, staff also recommends the City expand the prezoning area to include the entire 421 acres. This will provide additional assurances to property owners of the actual zoning that would be applied even to those lands not included in the annexation. Finally, after discussions with Nevada County staff, the County wishes to be included in the land use and zoning changes, but not in the annexation at this time. As noted in the report the Council on March 1 the overall goal of this effort was for the City to take a proactive step to enhance future job growth and retail opportunities. To achieve this goal, there was an expressed desire for industrial rather than commercial and business park uses on the former Bear River Mill SDA site. Additionally, the report noted there was a need to adjust other land use designations and residential densities to ensure the provision of feasible public facilities. Finally, the report noted this planning effort allows the City to address the retail leakage and demands, and to address the longer-term regional housing requirements imposed by the State. Agenda Item #

4 City of Grass Valley City Council/Planning Commission Study Session Report Proposed Amendments to the General Plan and Zoning Maps: Following is a brief description of the proposed General Plan and Zoning map changes to the east and west sides of Highway 49. Overall, the proposed map changes reflect more industrial designated land, a significant reduction in business park land, a transfer of residential densities from very low density to medium density residential, a concentration of commercial land uses on the west side of the highway (eliminating commercial zoning on the east side), and more reliance on the County s zoning on the west side of the highway. East Side: Currently the City s General Plan includes about 84 acres of Business Park, 136 acres of Urban Low Density Residential, 5 acres of Commercial, and 66 acres of Special Development Area on the east side of Highway 49. The proposed land use map changes include the following: Reduces the Business Park designation to 10.3 acres and maintain it at the northern end of the annexation area. 2. Eliminates the Urban Estate Density, transfers that residential density to north and south, and creates 63 acres of Open Space and 33 acres of Urban Medium Density Residential. 3. Transfers the 5 acres of Commercial designation to the west side of Highway Creates 118 acres of Industrial/Manufacturing area on the remaining lands. This recognizes and protects the existing industry and businesses by establishing a zone that is consistent with the uses taking place of the land (i.e. the proposed M-1 and M-2 zoning permits those uses and will not create any non-conforming uses). 5. Creates 20 acres of Public zoned lands on the County-owned property. West Side: Currently, the City s General Plan includes about 120 acres of Urban Estate Density Residential and about 10 acres of Commercial on the west side of Highway 49. As noted in the March 12th Council report, this land use creates the potential for suburban sprawl and the City should consider a more urban land use form if this land were to be annexed. Furthermore, it is not feasible to provide public infrastructure or services to this area under the current land use plan. The current land use represents a suburban sprawl pattern that does not support the principles of sustainable and smart growth. Finally, the report notes the City experiences significant retail leakage and there is limited land to meet the areas retail demands. Based on these facts, staff recommended the Council consider and study this area as a potential location to address the long-term commercial needs of the City. The proposed land use mix is as follows: 1. Two options for commercial - approximately 29 acres or 20 acres for Commercial. The County zoning has approximately 12.5 acres. As noted above, staff also proposes to transfer the 5 acres of Commercial designated land on the east side of Highway 49 to the west side. 2. Approximately 7 acres of Urban Estate Density Residential. The County zoning has approximately 68 acres of RA Approximately 27 acres of Urban Medium Density Residential (UMDR). The County zoning has approximately 36 acres of R-2. If the commercial acreage is reduced in #1 above, the UMDR increases to 32 acres. 4. Approximately 14 acres of Urban Low Density. County zoning does not include any R-1 Agenda Item #

5 City of Grass Valley City Council/Planning Commission Study Session Report 5. Approximately acres of Open Space. County zoning does not include any Open Space. The Open Space land would either be private open space or incorporated into larger parcels that would be individually owned. Discussion Points: It is important to keep in mind that the proposed land use and zoning designations do not commit the City to adopting those changes. This is a planning effort that may result in map changes. Once the EIR is completed, the City will then evaluate and decide if it wishes to amend the General Plan land use designations and determine the appropriate prezoning for the land. The EIR will review alternative land uses, which will include one that maintains the existing map designations. To further address some of the concerns raised by property owners regarding potential annexations, staff expects this project will need to include some pre-annexation agreements. The purpose of the agreements is to provide land owners with assurances they will be able to continue to operate their unique businesses without the concern of future burdensome restrictions from the City. Attachments: Proposed Land Use and Zoning Maps March 12, 2013, City Council Report Agenda Item #

6 CITY OF GRASS VALLEY Preliminary General Plan Map I BP 10.3 AC I UMD 19.4 AC (Not Within City s S.Q.l.) z irs (Not Within the\ Citys SQl.) Os 27.5 AC.4 / \\ \/ UMD LEGEND./ 13.6 AC Grass Valley City Limits -Proposed Annexation Area UED (Urban Estate ULD (Urban Low Density) 20C S j UMD (Urban Medium Density).1 C (Commercial) M-1 (Manufacturing I Industrial) P(Public) BP (Business Park) OS (Open Space) j (Not Within the City s SOt

7 CITY OF GRASS VALLEY Preliminary Zoning Map z i 10.3 AC r 19.4 AC (Not Within the City s Sot.) (Not Within the( City s Sal.) IC Ar OS 27.5 AC I * LEGEND Grass Valley City Limits -City Sphere of Influence RE (Residential - Low Density) VMS 1 R-2 j I,\, LIIIIIIIIIII1 R-1 (Residential - f Low Density) 20.3 AC / W 2 AC R-2 (Residential Med Density) C-2 (Central Business) M-1 (Light Industrial) (Not city s With the M-2 (Genera! Industrial) j 19.0 AC P (Public) CBP (Commercial Business Park) OS (Open Space) 13.6 AC cis

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10 City of Grass Valley City Council Agenda Action Sheet Council Meeting Date March Date Prepared: March 6, 2013 Prepared by: Thomas Last. Community Development Director Z2L Title Initiation of Li General Plan Amendment. Prezone and Annexation of the Bear River Mill Site Special Development Area and intervening properties. Agenda: Administrati\ e Recommended Motion: Staff recommends the Council take the following actions: 1) Initiate an amendment to the General Plan Land Use Map for approximately 421 acres, which includes all the land in the southern Sphere of Influence on the east and west sides of Highway 49; 2) Initiate a Prezone of approximatel\ 140 acres of land within the near term annexation horizon located east of Highway 49; 3) initiate an Annexation of approximately 140 acres of land within the near term annexation horizon located on the east side of Highway 49; and, 4) Authorize a bud get amendment of $100,000 to the Development Services Fund for this work. Background: The changes in the City s economic climate and long-range planning needs warrant a need to revisit the General Plan and proposed land uses in the southern area of the City s Sphere of Influence (SQl). There are a number of recent factors that need to he considered related to the future direction of development in this area. These factors include: 1) The Bear River Mill Special Development Area (BRMSDA) does not have a specific land use mix; 2) Ownership changes with the BRM>l)A properties. including Nevada County purchasing 20 acres in the City SQl; 3) An inadequate suppl\ of vacant industrial zoned land with access to sewer service in both the City and Counl\ : -G An owner preference for industrial zoned land rather than retail/commercial land on the former BRMSDA site and adjacent properties; 5) The City completed a wastewater feasibility analysis in 2012 which found there is a need to address the land use mix and coordinate infrastructlire in the southern SQl: 6) A need to address an urban rather than rural land use mix in this portion of the 501 to better incorporate a balanced development approach: 7) A need to plan for and coordinate infrastructure that is economically feasible and designed to meet the needs of Li broader area, verses a piecemeal approach; and 8) the City needs to take a proactive, leadership role in a larger, integrated planning effort for this portion of the SQl. to insure it is developed in a comprehensive and effective manner. The attached staff report provides a detailed analysis of recommended approaches to address the above issues. The report also outlines the process the City will need to undertake to be proactive in working with private properil owners a eve pllifl for the economic health of the City. Reviewed by: City Administrator Council Goal/Objective: Economic Development Strategy 42 Attachment: Staff Report Agenda Item # 7-

11 City of Grass Valley City Council Staff Report To: From: RE: Grass Valley City Council Thomas Last, Community Development Director Initiation of a General Plan Amendment, Prezone and Annexation of the Bear River Mill Site Special Development Area and intervening properties. Background: On October 9, 2012, the City completed a wastewater feasibility analysis. This study analyzed whether it was feasibility to provide sewer service to the southern parts of the City s sphere of influence. The study concluded that it is feasible. However, to achieve this, the City needs to amend its General Plan to establish a land use mix that creates a greater demand for sewer than currently exists. The study also concluded the City should consider a larger planning area to feasibly distribute the infrastructure costs. The report to Council that accompanied this study included the following action steps: 1. An amendment to the City General Plan to consider the recommendations in the study. Since so much of the infrastructure needs, including water and road improvements, is dependent on a larger area, the City needs to take a more comprehensive planning approach that includes land on the west side of Highway 49 (comprehensive review of all property in the City s southern Sphere of Influence (Sol). 2. A plan to prezone the land to be consistent with the General Plan 3. A plan to coordinate with the County to achieve consistent General Plans. This requires cooperation to complete joint planning of the area, potential cost sharing to complete necessary environmental work and consideration of other tools and finance mechanisms to promote economic development opportunities to this area of the community. 4. A plan for a public/private partnership to assist in the planning efforts. This will include options to participate in the financing of the planning and environmental work. 5. A plan to initiate annexation proceedings with LAFCo. There are opportunities to annex some of the land with minimal environmental work and costs. 6. A plan to apply for funding to assist in the above planning efforts and for the actual extension of the sewer system. This includes use of impact fees, low-interest loans, grants (2013 CDBG Super NOFA), and other financing sources discussed in the report.

12 Since the October Council meeting, staff has had several meetings with County staff and with some of the property owners in the southern SOT. Staff believes there is now a strong opportunity to work cooperatively with the County and property owners to address some mutual land use needs. Based on these meetings, there is an expressed and stronger desire for industrial rather than commercial and business park uses on the former Bear River Mill SDA site. Additionally, there is a need to increase other land uses and residential densities to ensure the provision of feasible public facilities and to address the regional housing requirements. Finally, there is a strong need to help improve the regional job environment and enhance job opportunities for the community. Over the past two years, the City Council has taken action and laid the foundation to lead in the effort to enhance local job growth and retail opportunities. The economic realities facing the City cannot be met by the private sector alone and will require public/private partnerships. By taking additional proactive steps now, the City will be in a better position to help address the job needs of the community prior to the next business growth cycle. Furthermore, by annexing the 140 acres of land located east of Highway 49 and within in the near term annexation plan, the City is in a much better position to receive infrastructure grants tied to job creation. The planning effort also ties together the growth in jobs (payroll) and the impact this has on the City s retail and commercial offerings and revenue generation. Generally, for each primary job created there are 3 to 7 other support jobs created. Therefore, the City needs to address the retail demand of the community and the retail leakage going to other communities, as these support type jobs are being "exported" as sales "leak" from Grass Valley to other areas. The City Council has recognized the impact the economic downturn has had on the City and that we are at a critical juncture. There are now opportunities for the City to further address the needs of the community as we plan for the future. The City has a very limited supply of vacant industrial zoned land to meet the future job growth needs of those businesses. The Loma Rica Ranch project did increase the available inventory of business park lands; however, there is a regional deficiency in vacant industrial lands. Also, as confirmed in the Glenbrook Study and the Buxton Report, Grass Valley experiences significant retail leakage to other cities in our region. This retail leakage not only highlights a significant locally unmet demand, but also results in additional consumer costs and environmental conflicts. These reports indicate the community can accommodate an additional 300,000+/- square feet of retail space to meet current unmet demands. If the City expands its job and retail opportunities, it gives added support and reasons to support the shop local program. If Grass Valley is to be a balanced and sustainable city, it is important to address these needs in a comprehensive manner (jobs, housing, retail, public services, infrastructure etc.). Based on the overview analysis provided above, the review of the various studies done over the past few years, discussions with private property owners and County staff, past City planning efforts, and expressed City Council goals, staff recommends the Council approve a land use planning effort that addresses the City s entire southern SOI. This will provide property owners with some direction since they will know what is anticipated for their future costs, application process steps and times, and the economic viability of potential projects. The action will give a greater level of certainty and predictability as owners engage with the City and public in development efforts. Additionally, these efforts will allow property owners to study proposed changes and potentially move forward with appropriate projects based on the planning effort put Agenda Item #

13 forth under the City s leadership. To complete this level of planning work a number of action steps will need to be taken by the City. Proposed Action Steps: Development of Proposed Integrated Land Use Plan - The foundational work for this planning effort is to identify and confirm the proposed mix of land uses in the SOT study area. This will include outreach to property owners, the County, and the community. This work provides the basis for moving forward with the formal "applications" that will be processed by the City. While a smaller planning area could be considered, staff strongly recommends that the entire SOT area be included in the initial planning phase; however, the annexation area will be limited as noted below. This is critical to adequately plan and cost out infrastructure requirements, public service demands, and cumulative impacts and to proactively engage interested and affected property owners. General Plan Amendment Application - There are 50 parcels with 291 acres on the east side of Highway 49 within the City s Sphere of Influence. There are 5 property owners that own most of the 291 acres. There are 6 parcels, primarily under one owner, with 130 acres on the west side of Highway 49 within the City Sphere of Influence. As noted previously, the southern SOT area requires a coordinated planning effort to address the interrelated infrastructure requirements. In todays environment it is unrealistic to expect a single property owner to coordinate a "regional" planning effort. However, to properly prepare property for development and ultimately annex lands into the City, a coordinated effort is necessary. To move forward in a coordinated fashion, staff recommends that the City take the lead in this process, including funding, EIR work, and meeting with property owners. To conduct a comprehensive planning effort, staff recommends the General Plan Amendment include the entire 421 acres in southern SOT. Prior to beginning the EIR, the City must settle on a preferred land use mix, which may be modified during the process as different alternatives are analyzed. Staff proposes to use the recommendations in the wastewater feasibility study as a starting point for planning the east side. This includes an industrial use orientation that protects many of the existing uses, and a clustering of residential uses. On the west side, staff proposes an urban rather than rural land use pattern. This may include a land use change similar to the County s zoning (a mix of medium density residential and commercial). An urban land use is necessary to spread the costs of infrastructure, to have sustainable and smart growth, and to address long-term needs of the community. Annexation and Prezone Applications - Staff recommends the City prezone and annex 41 parcels totaling 140 acres on the east side of Highway 49. This includes all the land within the "near term" annexation time horizon as identified in the City s Sphere of Influence Plan. This also includes the 20 acres of County owned property within the SOT. The City will need to confirm the County s desire and need to annex this land. Furthermore. the County acquired an additional 20 acres outside of the SOT that the City may analyze in the ETR process. The proposed prezoning of this area will be consistent with the proposed General Plan amendments. Preparation of an Environmental Impact Report (EIR) - This planning effort requires the preparation of a program EIR. This type of EIR is prepared for a larger geographical area and is typical for an area-wide general plan amendment, prezone and annexation. Once the land use designations are in place, specific development projects will require some level of subsequent environmental review that can tier off the program ETR. This will help expedite, and reduce the 3 Agenda Item # 7

14 costs to process, future projects since they will be able to rely on the Program EJR for some of their required environmental review. Expected Costs - Staff anticipates it will cost approximately $100,000 to complete the Elk, pay for staff, consultants and pay for the LAFCo annexation process. Staff believes either the City or County Engineering staffs can prepare the legal description and map for annexation process which would reduce the LAFCo costs. Processing Time - Staff anticipates it will take 10 to 12 months to complete the Elk and for Council to take final actions on the applications. This assumes there are not legal challenges to the actions taken. Once approved, the annexation process with LAFCo is expected to take an additional 3 months. Proposed Land Use Mix: East Side of Highway 49 - Based on public input during the wastewater feasibility study process, protecting existing industry and business is a critical consideration for any land use changes. The initial proposed land use for this area will primarily be used to address future industrial rather than commercial or business park needs of the community. For developed properties, this will leave them with a land use designation that reflects their current uses and activities. Because of the potential loss of commercial and business park uses, there is a need to increase densities and allow for other uses to provide economically feasible infrastructure. If not, future development of the annexed properties will be financially constrained. Modifications to some of the vacant properties will need to be made to create buffer zones between the industrial and other land uses. To initiate the process staff proposes to start with the base zoning recommendations in the wastewater study, with a few modifications as noted. West Side of Highway 49 - The current General Plan designation of Residential - Urban Estate Density and limited Commercial on the west side properties is not sustainable nor does it reflect an urbanized land use pattern. The costs to provide infrastructure and the long-term costs to provide public services under the current land use plan are not feasible for the City. This fact, in conjunction with the anticipated land use changes on the east side of Highway 49, requires a different land use mix to generate a sustainable land use plan for the area and one that will support necessary public services and infrastructure. Sustainable and smart growth principles dictate the need to create an urban land use mix to meet the long term service and infrastructure needs of the community. Just as important, a more urban land use plan will also allow the City to address many of the mandatory Green House Gas requirements imposed by the state. Conclusion: By taking the lead in the planning process staff believes the City can more effectively address many of the concerns raised with any of the proposed the land use plans for this area of our Sphere of Influence. Working with property owners, other agencies, and the community. the City can plan for and accommodate appropriate buffers to reduce any conflicts with existing industrial properties and residential areas. We will be in a better position to direct circulation routes to reduce conflicts, to incorporate longer-range infrastructure planning and to address other deficiencies. A proactive planning process will also assist the City in its own long-term economic planning efforts. At the conclusion of this planning process, the Council will make the final determinations regarding the desired land use plans. Staff has been working with the Agenda Item #

15 County, LAFCo and property owners in preparing this proposed process. There is expressed support for the process. Staff will continue to work closely with those involved in the process. Fiscal Impact: To implement this proposed action, the City will need to complete an Environmental Impact Report and a number of associated reports. Staff proposes to complete all the planning steps to process the applications and to assist in the preparation of portions of the EJR; however, the City will need to hire a consultant(s) and commit funds to complete the EIR and the annexation process with LAFCo. As this is a one-time investment of City resources, staff is recommending the use of one-time revenues for this work. The preliminary cost estimate is $100,000. With the City receiving a one-time unanticipated reimbursement of costs of $137,928, funding is recommended from this source and for the budget to be amended accordingly. The remaining funds are recommended to be placed in the General Fund reserves. The funds will be accounted for in the Planning Division of the development services fund. Recommendation: Based on the above, staff recommends the City Council take the following actions: 1) Initiate an amendment to the General Plan Land Use Map for approximately 421 acres which includes all the land in the southern Sphere of Influence on both the east and west sides of Highway 49); 2) Initiate a Prezone of approximately 140 acres of land on the east side of Highway 49; 3) Initiate an Annexation of approximately 140 acres of land within the near term annexation horizon located on the east side of Highway 49; and 4) Authorize a budget amendment of $100,000 to the Development Services Fund for this work Agenda Item #