COUNCIL AGENDA: 01/10/17 ITEM: 11.1(b) CITY OF SAN IPSE CAPITAL OF SILICON VALLEY CITY COUNCIL STAFF REPORT File No. C16-048 Applicant: Terry Pries Location 320 Race Street Existing Zoning LI Light Industrial Proposed Zoning CIC Combined Industrial/Commercial Council District 6 Historic Resource Yes (Identified Structure, Shogren's Restaurant) Annexation Date: March 31,1955 CEQA: Determination of Consistency with Envision San Jose 2040 General Plan Final Program EIR (Resolution No. 76041) and Supplemental EIR to the Envision San Jose 2040 General Plan Final Program EIR (Resolution No. 77617) APPLICATION SUMMARY: A Conforming Rezoning from the LI Light Industrial Zoning District to the CIC Combined Industrial/Commercial Zoning District on a 2.0-gross acre site. RECOMMENDATION: Staff recommends that the City Council approve the Conforming Rezoning. PROJECT DATA GENERAL PLAN CONSISTENCY General Plan Designation Consistent Policies Inconsistent Policies Combined Industrial/Commercial X Consistent O Inconsistent IP-1.6, IP-8.2, IE-1.1, IE-1.2, and LU-8.2 None SURROUNDING USES General Plan Land Use Zoning Existing Use North Urban Village CP Commercial Pedestrian Retail used car lot South Combined LI Light Industrial Retail Industrial/Commercial East Combined LI Light Industrial Construction services West Industrial/Commerci al Neighborhood/Community Commercial A(PD) Planned Development (O.C. McDonald) Retail and public eating establishment (Safeway and McDonalds)
December 9, 2016 Page 2 RELATED APPROVALS Date Action 10/31/1958 Building Permit (File No. 58-029381) to construct building for Mel Cottons. 5/12/2015 General Plan Amendment (File No. GP15-008) to change the Land Use/Transportation Diagram land use designation from Combined Industrial/Commercial to Transit Residential on an approximately 4.10 gross acre site. Proposal was denied by the City Council. PROJECT DESCRIPTION On October 26, 2016, the applicant filed an application for a Conforming Rezoning of the subject 2.0-gross acre site from the LI Light Industrial Zoning District to the CIC Combined Industrial/Commercial Zoning District. Figure 1: Site Aerial The site is located on the southeast corner of Race Street and W. San Carlos Street and a sporting goods store (Mel Cotton's) currently occupies the site (see Figure 1). The building at 320 Race Street is an Identified Structure on the City's Historic Resources Inventory, formerly known as Shogren's Restaurant. Prior to its demolition, a historic evaluation and determination must be made to fully assess the historic significance. This site is located within 500 feet of four bus lines. Existing uses located adjacent to the site include a used car lot to the north, retail to the south, industrial uses (O.C. McDonald) to the east, and a retail store and public eating establishment (Safeway and McDonalds) to the west.
December 9, 2016 Page 3 ANALYSIS The proposed rezoning was analyzed for conformance with the following: 1) the Envision San Jose 2040 General Plan; 2) Midtown Specific Plan; 3) the Zoning Ordinance; and 4) the California Environmental Quality Act (CEQA). Envision San Jose 2040 General Plan Conformance The subject site has an Envision San Jose 2040 General Plan Land Use/Transportation Diagram land use designation of Combined Industrial/Commercial (see Figure 2). This category allows a significant amount of flexibility for the development of a varied mixture of compatible commercial and industrial uses, including hospitals and private community gathering facilities. Properties with this designation are intended for commercial, office, or industrial developments or a compatible mix of these uses. This designation occurs in areas where Figure 2: General Plan Designation the existing development pattern exhibits a mix of commercial and industrial land uses, or in areas on the boundary between commercial and industrial uses. Development intensity can vary significantly in this designation based on the nature of specific uses likely to occur in a particular area. In order to maintain an industrial character, small, suburban strip centers are discouraged in this designation. This rezoning facilitates the redevelopment of this site with uses consistent with the Combined Industrial/Commercial General Plan designation and is consistent with the following General Plan policies: 1. Implementation Policy IP-1.6: Ensure that proposals to rezone and pre-zone properties conform to the Land Use/Transportation Diagram, and advance Envision General Plan Vision, goals and policies. Analysis: The CIC Combined Industrial/Commercial Zoning District is the conforming zoning district for the Envision San Jose 2040 General Plan Land Use/Transportation Diagram's designation of Combined Industrial/Commercial, as indicated by Zoning Ordinance Section 20.120.110. The rezoning advances the General Plan vision, goals, and policies, as further analyzed below. 2. 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.
December 9,2016 Page 4 Analysis: The proposed rezoning would utilize a conventional zoning district to implement the Combined Industrial/Commercial land use designation. The CIC Zoning District supports a mix of commercial and industrial uses, and would provide a boundary between existing commercial and industrial uses in the area. 3. Land Use and Employment Policy IE-1.1: To retain land capacity for employment uses in San Jose, protect and improve the quantity and quality of all lands designated exclusively for industrial uses, especially those that are vulnerable to conversion to non-employment uses. Analysis: The Planning Commission and City Council denied a General Plan Amendment on this property in 2015. This previous application sought to convert the industrial land to residential uses. The rezoning of this property to the CIC Zoning District brings the land into conformance with the General Plan's goals and policies for the site, as well as retains the land for employment uses. 4. Land Use and Employment Policy IE-1.2: Plan for the retention and expansion of a strategic mix of employment activities at appropriate locations throughout the City to support a balanced economic base, including industrial suppliers and services, commercial/retail support services, clean technologies, life sciences, as well as high technology manufacturers and other related industries. Analysis: With the CIC Zoning District designation, this site has the potential to support both industrial and commercial uses, and provide employment growth opportunities to the city. 5. Maintain Employment Land Policy LU-8.2: Encourage more large-format commercial uses in Combined Industrial/Commercial lands, since these development typologies are typically similar to the development scale of industrial development in the same area. Discourage small-scale and strip commercial shopping centers in the Combined Industrial/Commercial area. Analysis: With the CIC Zoning District designation, this site would support a largeformat commercial use as envisioned by the General Plan. The site is surrounded by a mix of small commercial establishments, used car lots, smaller industrial properties, and two larger shopping anchors (Walgreens and Safeway). Midtown Specific Plan Conformance This project site is in the Lincoln Auzerais Planning Subarea of the Midtown Specific Plan. Any project within the Specific Plan area must comply with the goals and policies of this Specific Plan in order to have General Plan conformance. The area calls for the preservation of lower intensity industrial supply and service uses and for incubator commercial and industrial uses. The following policies from the Specific Plan are applicable: Policy 5.1: High-intensity commercial and residential uses should be discouraged within this area to maintain the viability of existing service-oriented businesses.
December 9,2016 Page 5 Policy 5.2: Retail and people-oriented uses are encouraged along West San Carlos Street to reinforce the existing Neighborhood Business District; to the extent possible, such uses are also encouraged along Lincoln Avenue. Analysis: Rezoning the subject site to the CIC Combined Industrial/Commercial Zoning District supports the goals and policies of the Midtown Specific Plan. Policies 5.1 and 5.2 encourage maintaining service-oriented businesses along West San Carlos and other busy streets. Additionally, the uses allowed under the CIC Zoning District, including manufacturing and assembly, research and development, wineries and breweries, retail sales, goods and merchandise, and large format commercial establishment, support these policies. Burbank/Del Monte Strong Neighborhoods Initiative (SNI) Area This project site is located in the Burbank/Del Monte Strong Neighborhoods Initiative (SNI) Area. Goals along the West San Carlos corridor include preservation and promotion of commercial uses, reduction of blight, and implementation of streetscape improvements. The introduction of a new industrial or commercial development at this site will allow for street improvements, remove situations where blight may currently occur today, and provide opportunities for new industrial or commercial development. Zoning Ordinance Conformance This proposal changes the Zoning District from the LI Light Industrial Zoning District to the CIC Combined Industrial/Commercial Zoning District. Per Municipal Code Section 20.50.010, the CIC Combined Industrial/Commercial Zoning District is intended for commercial or industrial uses, or a compatible mixture of these uses, that support the goals of the Combined Industrial/Commercial General Plan designation (see Figure 3). The district allows a broad range of commercial uses with a local or regional J, 1 45 0 St: r W San Carlos it-j /" i A(PD) r Com " C r A(PD) ii Res J SITE H 1 Figure 3: Zoning Designation market, including big box retail, and a narrower range of industrial uses, primarily industrial park in nature, but including some low-intensity light industrial uses. p4 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The proposed Conforming Rezoning will change the current LI Light Industrial Zoning District to CIC Combined/Industrial Commercial Zoning District on a 2.0 gross acre site. No new or more significant environmental impacts beyond those identified in the Envision San Jose 2040 General Plan Final Program Environmental Impact Report (FPEIR) and Supplemental EIR (SEIR) have been identified, nor have any new mitigation measures or alternatives which are considerably different from those analyzed in the FPEIR and SEIR been identified.
December 9, 2016 Page 6 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 for the Envision San Jose 2040 General Plan, for which findings were adopted by City Council Resolution No. 76041 on November 1, 2011, and Supplemental EIR adopted by City Council Resolution No. 77617 on December 15, 2015. The FPEIR and SEIR were 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 FPEIR and SEIR. PUBLIC HEARING NOTIFICATION In order to inform the public of the proposed project, 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. This Council Memorandum is also posted on the City's website. Staff has been available to respond to questions from the public. Approved by: /s/ Harry Freitas, Director, Planning, Building and Code Enforcement For questions, please contact Planning Official Steve McHarris at (408) 535-7819.