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COUNCIL AGENDA: 08-18-15 ITEM: II. ((b) CITY OF Cr ^2 SAN JOSE CAPITAL OF SILICON VALLEY CITY COUNCIL STAFF REPORT File No. C15-019 Applicant: Imwalle Properties Location Southeast corner of Monterey Highway and East Alma Avenue (1402 Monterey Highway) Existing Zoning HI Heavy Industrial & LI Light Industrial Council District 7 Historic Resource N/A Annexation Date: August 18,1955 (Monterey Park No 4) CEQA: Envision San Jose 2040 General Plan EIR Resolution No. 76041 APPLICATION SUMMARY: Conforming Rezoning of an approximately 3.69 gross acre site from the HI Heavy Industrial Zoning District and LI Light Industrial Zoning District to the CIC Combined Industrial/ Commercial Zoning District. Rezoning to the CIC Combined Industrial/ Commercial Zoning District will allow a greater variety of industrial and commercial uses to be developed on the site, and will bring the property into conformance with the Envision San Jose 2040 General Plan Land Use/Transportation Diagram's designation of Combined Industrial/ Commercial. RECOMMENDATION: Staff recommends that the City Council approve the proposed Conforming Conventional Rezoning to the CIC Combined Industrial/ Commercial Zoning District. PROJECT DATA 1 GENERAL PLAN CONSISTENCY General Plan Designation C ombined Industrial/ Commercial IXI Consistent Inconsistent I Consistent Policies Land I se Goal LU-6, Land Use Policy LU-6.5, Implementation Policy IP-1.6 Inconsistent Policies, None i SURROUNDING USES General Plan Land Use Zoning Existing Use North Neighborhood Neighborhood/ Restaurant & Industrial Commimilv Commercial Community Commercial Offices A 1 lca\\ Industrial A I lea\ \ Industrial South Combined Industrial C( it I'D) Planned Retail Shopping Center Commercial Development

My 30, 2015 Page 2 East West Combined Industrial/ Commercial Neighborhood Community Commercial CG(PD) Planned Development LI(PD) Planned Development & A(PD) Planned Development Retail Shopping Center Restaurant & Motel PROJECT DESCRIPTION On May 7, 2015, the applicant applied for a rezoning of the subject 3.69 gross acres site from the HI Heavy Industrial Zoning District and LI Light Industrial Zoning District to the CIC Combined Industrial/ Commercial Zoning District. The site is currently developed with two industrial buildings that are being used for lumber storage and sales (more commonly known as the Southern Lumber site). The site is bounded by a restaurant and industrial offices to the north, a retail shopping center to the south and east, and a restaurant and motel to the west. The CIC Zoning District will allow for the applicant to market the site for a broad range of local and regional commercial uses, including big box retail and a narrower range of industrial uses. ANALYSIS Figure 1: Aerial photo of site and surroundings Envision San Jose 2040 General Plan Conformance The proposed rezoning conforms to the Envision San Jose 2040 General Plan Land Use/ Transportation Diagram's designation of Combined Industrial/ Commercial. This designation allows a significant amount of flexibility to develop a variety of compatible commercial and industrial uses.

July 30, 2015 Page 3 CIC - Combined Industrial/ Commercial HI - Heavy Industrial NCC - Neighborhood Community/ Commercial PQP - Public/ Quasi-Public RN - Residential Neighborhood Figure 2: General Plan Land Use/Transportation Diagram Additionally, the rezoning would support the following General Plan policies: 1. Implementation Policy IP-1.6: Ensure that proposals to rezone and prezone properties conform to the Land Use/Transportation Diagram, and advance Envision General Plan vision, goals, and policies. Analysis: The proposed rezoning to the CIC Zoning District directly conforms to the Envision General Plan's Land Use/Transportation Diagram designation of Combined Industrial/ Commercial for the site. The CIC Zoning District allows for a broad range of commercial and industrial uses; thus, supporting the use of the property as envisioned under the General Plan. 2. Implementation Policy IP-1.1: Use the Envision General Plan Land Use/ Transportation Diagram designations to indicate the general intended land use, providing flexibility to allow for a mix of land uses, intensities and development forms compatible with a wide variety of neighborhood contexts and to designate the intended roadway network to be developed over the timeframe of the Envision General Plan. Use the Zoning designation to indicate the appropriate type, form and height of development for particular properties. Analysis: The proposed conforming rezoning to CIC Combined Industrial/ Commercial will allow a variety of commercial and light industrial uses that are more compatible with the surrounding commercial retail uses and site setting.

July 30, 2015 Page 4 CG - Commercial General NCC - Neighborhood Community/ Commercial CIC - Combined Industrial/ Commercial (PD) - Planned Development CN - Commercial Neighborhood PQP - Public/ Quasi-Public CP - Commercial Pedestrian R-1-8 - Single-Family Residence HI - Heavy Industrial R-2 - Two-Family Residence LI - Light Industrial RN - Residential Neighborhood Figure 3: Existing Zoning Map (left) and Proposed Zoning Map (right) 3. Land Use Policy LU-5.3: Encourage new and intensification of existing commercial development, including stand-alone, vertical mixed-use, or integrated horizontal mixed-use projects, consistent with the Land Use / Transportation Diagram. Analysis: The proposed rezoning to the CIC Zoning District is consistent with the site's Envision General Plan's Land Use/Transportation Diagram designation. The subject site is developed and currently used for lumber storage and retail which is allowed in the LI and HI Zoning Districts. The proposed CIC Zoning District will allow for intensification of the site by allowing expansion of retail uses that could be conducted in the existing buildings. 4. Land Use Policy LU-6.5: Maintain and create Industrial designated sites that are at least one acre in size in order to facilitate viable industrial uses. Analysis: The subject rezoning site is 3.69 gross acres in size and will facilitate industrial and commercial uses that are compatible with existing and planned land uses. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Pursuant to Section 15168 of the CEQA Guidelines, the City of San Jose has determined that the proposed rezoning is pursuant to, in furtherance of and within the scope of the Envision San Jose 2040 General Plan program the impacts of which were analyzed and disclosed in the Final Environmental Impact Report (EIR) for the Envision San Jose 2040 General Plan, for which findings were adopted by City Council Resolution No. 76041 on November 1, 2011. The Program EIR was prepared for the comprehensive update and revision of all elements of the City of San Jose General Plan, including an extension of the planning timeframe to the year 2040. The proposed rezoning does not involve new significant effects beyond those analyzed in the Program EIR.

July 30, 2015 Page 5 PUBLIC HEARING NOTIFICATION Staff followed Council Policy 6-30: Public 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 staff report is also posted on the City's website. Staff has been available to respond to questions from the public. No letters or comments from the public have been received to date. Approved by: /s/ Harry Freitas, Director, Planning, Building and Code Enforcement Attachments: Plot Plan

EAST ALMA AVE. 670.64' OWNER: SOUTHERN LUMBER COMPANY, INC. APN 477-07-012 164,125.8 SF 65.5' O 5 S $ 3 EXISTING BLDG. A GROUND FLOOR RETAIL 62,852.8 SF GROSS AREA 28.5' EXISTING BLDG C GROUND FLOOR RETAIL 10,087 SF GROSS AREA EXISTING BLDG B GROUND FLOOR RETAIL 6,945 SF GROSS AREA 377.8125* 678.77' 1402 S. FIRST ST./MONTEREY RD. EXHIBIT B - PLOT PLAN EATON HALL ARCHITECTURE, INC. 1501 The Alameda, San Jose, California 95126 0' 10' 20' 1" = 50' 5/7/2015