A DJUSTMENTS. B. Permits Requested Pursuant to State Density Bonus Law:

Z O N I N G A DJUSTMENTS B O A R D S t a f f R e p o r t FOR BOARD ACTION MARCH 13, 2008 2398 Bancroft Way Use Permit #06-10000140 to demolish student-oriented religious assembly building and construct 4-story mixed-use building with 22,200 square feet of floor area, including ground-floor religious assembly space, 6 dwelling units, and group living accommodations for 20 persons, on a 7,975 square foot lot (R-4 Multi-Family Residential, AS) I. Application Basics A. Zoning Permits Required: Use Permit to demolish existing religious assembly building, under BMC Section 23C.08.050 Use Permit to allow continued religious assembly use in new building, under BMC Section 23D.40.030 Use Permit to construct 6 dwelling units, under BMC Section 23D.40.030 Use Permit to construct group living accommodations for 20 residents, under BMC Section 23D.40.030 Use Permit to exceed 3 stories and 35 feet in height, under BMC Section 23D.40.070.C Administrative Use Permit to allow Joint Use Parking Agreement, under BMC Section 23D.12.060.A B. Permits Requested Pursuant to State Density Bonus Law: (Modification of Development Standards to Allow Density Bonus) Variance to allow lot coverage of 55.7 percent where 40 percent is otherwise allowed Variance to reduce Dana Street setback by 8 to 12 feet (depending on story) Variance to reduce interior side setbacks at southeast portion of lot by 1 to 5 feet (depending on story) 2120 Milvia Street, Berkeley, CA 94704 Tel: 510.981.7410 TDD: 510.981.7474 Fax: 510.981.7420 E-mail: zab@ci.berkeley.ca.us

2398 BANCROFT WAY ZONING ADJUSTMENTS BOARD Page 2 of 15 March 13, 2008 (Additional Concessions to Provide for Affordable Housing Costs) Variance to reduce required parking from 11 spaces to 8 Additional building volume on north side, requiring Variances to further increase lot coverage (to 70.5 percent) and waive setback on Bancroft Way C. CEQA Determination: Categorically exempt pursuant to Section 15332 of the CEQA Guidelines ( In-Fill Development ). D. Parties Involved: Applicant Aran Kaufer, 1410 Fairview St., Berkeley, 94702 Property Owner Wesley Foundation, 2398 Bancroft Way, Berkeley, 94704 Architect Kirk Peterson & Associates, 5253-A College Ave., Oakland, 94618 Figure 1: Vicinity Map File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

ZONING ADJUSTMENTS BOARD 2398 BANCROFT WAY March 13, 2008 Page 3 of 15 Figure 2: Site Plan File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

2398 BANCROFT WAY ZONING ADJUSTMENTS BOARD Page 4 of 15 March 13, 2008 Table 1: Land Use Information Location Existing Use Zoning District General Plan Designation Subject Property Religious assembly R-4 High Density Residential Surrounding Properties North UC Berkeley campus R-5 (High Density Institutional Residential) South Religious assembly R-4 High Density Residential East Community service organization, parking lot R-4 (C-T beyond) High Density Residential West Religious assembly R-4 High Density Residential Table 2: Special Characteristics Characteristic Applies Explanation to Project? Creeks N No creeks within 30 feet of subject property. Density Bonus Y Density bonus and concessions requested (see below for further discussion). Historic Resources N No designated historical resources on subject property. Inclusionary Housing Y Project creates more than 4 dwelling units and is therefore subject to inclusionary requirements (BMC Chapter 23C.12); one inclusionary unit is provided. Oak Trees Y Coast live oak tree located at northeast corner of site to be preserved. Seismic Hazards N Subject property is not located within a designated seismic hazard zone. Soil/Groundwater Contamination N No evidence of prior uses involving hazardous materials. Green Building Score Y Project would achieve a score of 116.6, based on a draft GreenPoint checklist completed by Build It Green. Build It Green considers this score to be quite high. Table 3: Project Chronology Date November 13, 2006 May 17, 2007 November 2, 2007 February 28, 2008 March 6, 2008 March 13, 2008 March 13, 2008 Action Application submitted DRC grants preliminary design approval Application deemed complete Public hearing notices mailed/posted LPC considers proposed demolition PSA deadline (as extended by applicant) ZAB hearing File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

ZONING ADJUSTMENTS BOARD 2398 BANCROFT WAY March 13, 2008 Page 5 of 15 Table 4: Development Standards Standard Existing Addition/ Proposed Permitted/Required BMC Sections 23D.40.070-080 (Reduction) Total R-4 District R-SMU District (draft) Lot Area (sq. ft.) 10,000 (2,025) 7,975 5,000 5,000 Gross Floor Area (sq. ft.) 4,653 17,547 22,200 N/A N/A Floor Area Ratio.47 2.31 2.78 N/A N/A Dwelling Units Building Height Building Setbacks (ft.) Total 0 6 6 N/A N/A Affordable 0 1 1 1 1 Average (ft.) 12 +/- 40 52 65 (w/use Permit) 75 (w/use Permit) Stories 1 3 4 6 (w/use 5 (w/use Permit) Permit) Front (Bancroft) 0 0 0 1 15 0-10 4 Rear 43-4 (28-4 ) 15 15 10 East Side (Dana) 11-4 (11-4 ) 0 1 1 st story: 6 2 nd story: 8 3 rd story: 10 4 th story: 12 West Side 4 2 1 st -3 rd stories: 6 4 th story: 8 1 st story: 4 2 nd story: 4 3 rd story: 6 4 th story: 8 1 st story: 0-6 4 2 nd story: 0-8 4 3 rd story: 0-10 4 4 th story: 0-10 4 1 st story: 4 2 nd story: 4 3 rd story: 6 4 th story: 8 Lot Coverage (%) 46.5 24.0 70.5 1 40.0 100.0 Usable Open Space (sq. ft.) N/A N/A 4,618 2 3,000 640 Parking Automobile 0 8 8 (off-site) 1 11 3 0 Bicycle 0 20 20 N/A N/A 1. Requested modifications under density bonus law. 2. Includes 1,947-sq.-ft. courtyard on adjacent property (to be shared with church). 3. For residential uses only; per Section 23D.04.080.C, parking for religious assembly use is determined by ZAB on a case-by-case basis. 4. Under the draft R-SMU regulations, the Design Review Committee would determine these setbacks on a case-by-case basis, depending on the context. II. Project Setting A. Neighborhood/Area Description: The project site is located at the southwest corner of Bancroft Way and Dana Street, directly across from the UC Berkeley campus and one block west of Telegraph Avenue. There is a relatively high volume of pedestrian traffic at this corner, due to the presence of the Recreational Sports Facility (RSF) across Bancroft Way, the adjacent Spieker Plaza, a major entry point to the campus, and the Unit 3 student File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

2398 BANCROFT WAY ZONING ADJUSTMENTS BOARD Page 6 of 15 March 13, 2008 dormitories one block to the south. This portion of Bancroft Way is a major transportation corridor, with three lanes of one-way traffic, six AC Transit bus lines, and the UC perimeter shuttle. Dana Street is a two-lane, one-way street with a bike lane, and connects to a campus bike route north of Bancroft. The site is about 0.5 miles walking distance from the Downtown Berkeley BART station. The neighborhood contains a mixture of institutional, religious, and residential uses, as well as buildings of various architectural styles and periods. To the south and west are buildings owned by Trinity United Methodist Church, and to the east is Stiles Hall, a community service organization for UC Berkeley students. There are no designated historical resources immediately adjacent to the site. The nearest historical resources (all City landmarks) are as follows: Berkeley City Club (c. 1929) located southwest of site on Durant Avenue First Unitarian Church/2401 Bancroft Way (c. 1898) located at northeast corner of Bancroft Way and Dana Street Harmon Gymnasium/Haas Pavilion (c. 1933/1999) located north of the site on the UC campus B. Site Conditions: Two buildings occupy the 100 by 100 site. A single-story building of about 2,900 square feet sits on the north portion of the site, along Bancroft Way, and is occupied by the Wesley Foundation, a student-oriented religious organization. A single-story chapel, owned by the adjacent Methodist church, sits on the southeast portion of the site, along Dana Street, and crosses the south property line onto the adjacent property. A relatively large coast live oak tree, 30 inches in circumference, is located at the northeast corner of the site and overhangs the public right-of-way. The tree is protected under the City s moratorium on oak tree removal. At the southwest portion of the site is a large courtyard shared by the Methodist church and the Wesley Foundation. The building to be demolished was constructed in 1955 as a youth center for the Methodist church. Permit records and photos are attached. The name of the architect is not known. The building is not a designated historical resource, nor is it listed on the State Historic Resources Inventory. The building is constructed primarily of painted concrete blocks. Apart from minor damage to the parapet at the northeast corner caused by the oak tree, the building appears to be in relatively good condition and does not appear to have undergone any significant alterations since its original construction. III. Project Description The proposed project would demolish the existing Wesley Foundation building and construct a new 4-story mixed-use building with ground-floor religious assembly and ancillary office space, six 5-bedroom dwelling units on the second and third floors, and File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

ZONING ADJUSTMENTS BOARD 2398 BANCROFT WAY March 13, 2008 Page 7 of 15 group living accommodations for 20 residents and a library on the fourth floor. The proposed units would be owned and rented to UC students by the Wesley Foundation. Pursuant to the City s inclusionary requirements (BMC Chapter 23C.12) and State density bonus law, unit 201 would be affordable to households earning no more than 80 percent of area median income. The ground-floor religious assembly space would include a meeting room accommodating up to 151 persons, a student lounge accommodating up to 30 persons, seven offices, and restrooms. Proposed activities would be very similar to those currently taking place at the site, including aerobics classes, bible studies and prayer meetings, and various social gatherings. Events would generally occur in the evening, to accommodate students schedules. The attached applicant statement provides further details on the proposed religious assembly activities (see Attachment 5). The building would adjoin the public right-of-way along Bancroft and Dana, except at the corner of these streets, where the existing oak tree would be preserved within a 900- square-foot entry courtyard. The building would have a Collegiate Gothic style with elements reminiscent of other historicist buildings in the vicinity such as the Berkeley City Club and the adjacent Trinity United Methodist Church. The project includes a lot line adjustment to reduce the area of the subject property from 10,000 square feet to 7,975 square feet. The purpose of this adjustment is to reduce the project s lot coverage and eliminate the need for other Variances such as building separation. Final approval of the adjustment would be a condition of approval (see Attachment 1, Condition 29). Eight parking spaces would be provided through a Joint Use Parking Agreement on adjacent property owned by the Methodist church. The applicant intends to reserve one of these spaces for a shared vehicle such as City Carshare or Zipcar. IV. Community Discussion A. Neighbor/Community Concerns: At this writing, staff has not received any communications indicating concerns or opposition to the project. Several letters of support for the project, including one from the Berkeley Architectural Heritage Association (BAHA) are provided in Attachment 9. B. Committee Review: Design Review Committee (DRC): On May 17, 2007, the DRC granted the project a unanimous favorable recommendation, with a condition that the applicant return to the DRC with the following information before Final Design Review: File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

2398 BANCROFT WAY ZONING ADJUSTMENTS BOARD Page 8 of 15 March 13, 2008 Roof material; Better articulation of large stucco surfaces; Façade details, including cement plaster and window details; Fence design at main corner courtyard; Rake and eave details; More developed landscape plan, including open space shown adjacent to southern courtyard. On October 18 and November 15, 2007, the DRC also reviewed an alternate 5-story design for the project that would have required fewer Variances due to its reduced coverage and increased setbacks. Although the DRC ultimately granted a favorable recommendation to this design as well, it expressed a strong preference for the 4- story design. One of the DRC s comments regarding the 5-story design was that the building s relationship to the sidewalk would be better with no setback, as well as more consistent with the Draft Southside Plan. Landmarks Preservation Commission (LPC): The LPC is scheduled to review the proposed demolition on March 6. Staff will update the ZAB on the LPC s action at the hearing. Staff is not aware of any historical resource concerns regarding the existing or proposed buildings. V. Issues and Analysis A. Key Issues: 1. Environmental Review & Traffic: The project qualifies for a Categorical Exemption pursuant to CEQA Guidelines Section 15332 (Class 32, In-Fill Development Projects), as follows: a. The project is consistent with the applicable General Plan designation and applicable General Plan policies (see General Plan/Area Plan Consistency below), as well as with the applicable zoning designation and regulations. While the project does not comply with R-4 lot coverage and setbacks, these aspects of the project are requested as modifications and concessions pursuant to State density bonus law (see below for further discussion), and Section 23C.12.050 of the Zoning Ordinance requires the City to grant density bonuses and concessions pursuant to State law. b. The project occurs within the Berkeley city limits on a project site of no more than five acres, and is surrounded by urban uses. c. The site is already developed and has no value as habitat for endangered, rare or threatened species. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

ZONING ADJUSTMENTS BOARD 2398 BANCROFT WAY March 13, 2008 Page 9 of 15 d. The project would not result in any significant effects relating to traffic, noise, air quality or water quality. e. The site is already served by required utilities and public services, which will also adequately serve the project. Furthermore, the project does not meet any of the exceptions in CEQA Guidelines Section 15300.2. In particular, the project will not have any significant effects due to unusual circumstances, or any cumulatively significant impacts (such as traffic), and it will not adversely impact any designated historical resources. 2. Compatibility with Neighborhood Scale & Character: Because the site is prominently located on a major thoroughfare across from the UC campus, in a neighborhood containing several architecturally noteworthy buildings, special attention must be paid to the project s scale and other design elements. The proposed 4-story height is well suited to this neighborhood. The neighborhood contains a dramatic mixture of building sizes and styles and is fairly intensely developed, particularly given the presence of very large UC buildings to the immediate north, and tall buildings to the south such as the Berkeley City Club (2315 Durant Avenue) and the Unit 3 student dormitories at Durant and Dana. While a taller building with increased setbacks might also be acceptable in this context, the proposed height and massing represent a subtler and more refined approach that highlights this corner and adds beauty and interest without competing with the other notable buildings in the vicinity. By wrapping around the oak tree at the corner of the site, breaking the building s mass into three distinct wings, and using various roof forms and window shapes, the project draws upon the best elements of its setting, resulting in an attractive addition to this visually prominent site. 3. Density Bonus and Concessions: Pursuant to Government Code Section 65915, because the project provides an affordable housing unit, it is entitled to a bonus of 35 percent over the number of dwelling units that would otherwise be allowed under the Zoning Ordinance without any Use Permits or Variances to modify development standards (i.e., the base project ). Furthermore, the project is entitled to two additional concessions, unless the City finds that the concessions are either not required to provide for affordable housing costs, or would have a specific adverse impact upon public health and safety, the physical environment, or a property listed on the California Register of Historical Resources. Based on a base project of 5 units, with an average unit size of 1,435 square feet, a 35-percent density bonus would be 2 units with a total area of 2,870 square feet. The applicant is only proposing one density bonus unit (for a total of 6 units), but is expanding the 5 base project units consistent with the area of a 2-unit File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

2398 BANCROFT WAY ZONING ADJUSTMENTS BOARD Page 10 of 15 March 13, 2008 bonus. The applicant has requested the following modifications of the R-4 development standards to accommodate this additional area: Lot coverage of 55.7 percent, where 40 percent is otherwise allowed Reduce Dana Street setback by 8 to 12 feet (depending on story) Reduce interior side setbacks at southeast portion of site by 1 to 5 feet (depending on story) Rather than increasing the height and meeting the required setbacks and lot coverage, these modifications allow the project to maintain a height and bulk arrangement that is more consistent with the scale and character of the surrounding area and is favored by the DRC, BAHA, and members of the surrounding community. It should be noted that the above modifications would also allow about 900 square feet of additional non-residential space at the southeast portion of the ground floor. Although modifications are normally used for residential space, the additional non-residential space is permissible under Section 65915(d)(3) because it supports the residential space on the floors above and results in a more attractive and pedestrian-friendly façade. It would not be feasible to locate residential space in this portion of the ground floor because the space is too small to accommodate a full unit, and the proposed religious assembly space is a more appropriate use given the fairly busy street frontage and the other religious assembly and institutional uses in the vicinity. In addition to the density bonus, State law entitles the applicant to two concessions or incentives, which are intended to offset the cost of providing affordable housing. The applicant has requested the following concessions: Parking The first concession is a Variance to reduce the project s parking requirement from 11 spaces to 8. An Administrative Use Permit has been requested to allow those 8 spaces to be provided in an off-site Joint Use Parking Agreement with the adjacent Methodist church. See below under Parking for further discussion. Additional Building Volume on North Side The second concession involves Variances to further increase the lot coverage (to 70.5 percent) and to waive the setback on Bancroft Way for all floors of the building, in order to provide additional building volume on the north side for second bathrooms and larger common areas in the proposed dwelling units. As with the density bonus at the southeast portion of the building, this concession includes additional non-residential space at the ground floor. The applicant has provided a pro forma which outlines the expenses and revenues associated with the inclusionary requirement, the density bonus modifications, and the requested concessions (see Attachment 7). The pro forma File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

ZONING ADJUSTMENTS BOARD 2398 BANCROFT WAY March 13, 2008 Page 11 of 15 demonstrates that the requested modifications and concessions would not fully provide for the cost of the project s inclusionary unit. The Housing Department has reviewed and concurs with the assumptions and conclusions of the pro forma (see memo, Attachment 8). Based on the pro forma, the DRC s preference for the proposed height and massing, and the community support for the project, staff recommends that the ZAB grant the requested modifications and concessions. 4. Parking: As noted above, the applicant has requested a reduced parking requirement as a concession under State density bonus law. As noted in Table 4, the R-4 District requires 11 parking spaces for the proposed residential uses, and allows the ZAB to determine the parking requirement for the religious assembly portion of the project, based on parking demand and other factors. Staff recommends that no parking be required for the religious assembly use because there is no off-street parking for the existing religious assembly building, and the project does not substantially increase the amount of religious assembly space on the site. In addition, there are numerous public parking facilities in the vicinity, and the religious assembly use generates very few auto trips given its orientation toward students and its proximity to the UC campus and public transportation. The applicants have proposed to provide eight of the 11 required parking spaces by leasing these spaces from the church parking lot west of 2362 Bancroft, in a Joint Use Parking Agreement. The spaces would primarily be used by Wesley Foundation staff, although one space would be reserved for a shared vehicle available to project residents. 1 Per Section 23D.12.060.C, these spaces would be recorded with the property s title to ensure that they are maintained for the project s use. Because all but one of the spaces will be available to churchgoers for weekend services, the proposed arrangement would not lead to a shortage of parking. In addition to density bonus considerations, staff believes that waiving the remaining three spaces is appropriate because of the availability of public parking in the vicinity, the project s orientation toward students and proximity to the UC campus and public transportation, and the provision of bicycle parking for project residents and visitors. In addition, the waiver would be consistent with the draft Southside Plan standards for this site, which do not require off-street parking for projects with a residential component (see below for further discussion). A parking study by the applicant, which provides further justification for the parking waiver, is provided in Attachment 6. 5. Southside Plan: As noted in Table 4, the project would be consistent with the standards of the Draft Southside Plan s R-SMU (Residential Southside Mixed Use) District. These include reduced setbacks when determined appropriate by the DRC, increased lot coverage (100 percent allowed), reduced open space requirements, and no required parking for projects with a residential component. 1 Because the applicant does not yet have an agreement with a car sharing service, the provision of a shared vehicle has not been included as a condition of approval. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

2398 BANCROFT WAY ZONING ADJUSTMENTS BOARD Page 12 of 15 March 13, 2008 The R-SMU standards and the policies of the Southside Plan promote a more vital, urban, pedestrian-oriented development pattern than the current R-4 standards, and the project is consistent with this vision. See below for discussion of applicable Southside Plan policies. B. General Plan/Area Plan Consistency: General Plan: The 2002 General Plan contains several policies applicable to the project, including the following: Character and Design 1. Policy LU-3 Infill Development: Encourage infill development that is architecturally and environmentally sensitive, embodies principles of sustainable planning and construction, and is compatible with neighboring land uses and architectural design and scale. 2. Policy UD-16 Context: The design and scale of new or remodeled buildings should respect the built environment in the area, particularly where the character of the built environment is largely defined by an aggregation of historically and architecturally significant buildings. 3. Policy UD-17 Design Elements: In relating a new design to the surrounding area, the factors to consider should include height, massing, materials, color, and detailing or ornament. 4. Policy UD-24 Area Character: Regulate new construction and alterations to ensure that they are truly compatible with and, where feasible, reinforce the desirable design characteristics of the particular area they are in. 5. Policy UD-25 Facades and Exterior Features: Buildings should have significant exterior features and facades that stimulate the eye and invite interested perusal. 6. Policy UD-26 Pedestrian-Friendly Design: Architecture and site design should give special emphasis to enjoyment by, and convenience and safety for, pedestrians. 7. Policy UD-27 Relation to Sidewalk: Projects generally should be designed to orient the main entrance toward the public sidewalk, not a parking lot, and avoid confronting the sidewalk with a large windowless wall or tall solid fence. 8. Policy UD-30 Planting: Ensure that, where feasible, new developments respect and contribute to the urban landscape by retaining existing on-site trees and/or, if appropriate, planting suitable new ones on-site or in the street right-of-way. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

ZONING ADJUSTMENTS BOARD 2398 BANCROFT WAY March 13, 2008 Page 13 of 15 9. Policy UD-31 Views: Construction should avoid blocking significant views, especially ones toward the Bay, the hills, and significant landmarks such as the Campanile, Golden Gate Bridge, and Alcatraz Island. Whenever possible, new buildings should enhance a vista or punctuate or clarify the urban pattern. Staff Analysis: The DRC considers the above issues in reviewing projects. Given the DRC s favorable recommendation on the project, the project is consistent with these policies. Sustainability 10. Policy H-13 Energy Efficiency: Improve the safety and energy efficiency of new and existing homes and apartments. 11. Policy EM-5 "Green" Buildings: Promote and encourage compliance with "green" building standards. 12. Policy UD-33 Sustainable Design: Promote environmentally sensitive and sustainable design in new buildings. 13. Policy UD-32 Shadows: New buildings should be designed to minimize impacts on solar access and minimize detrimental shadows. Staff Analysis: As noted above, the project achieved a relatively high green building score. The project includes solar panels and other green elements, and most importantly, it provides new housing in close proximity to the University, downtown Berkeley, public transportation and jobs. Southside Plan: The Draft Southside Plan, currently under review by the Planning Commission, also contains several policies applicable to the project, including the following: 1. Policy LU-A1.A: Encourage a variety of housing types to be built in the Southside, including houses, condominiums, townhouses, apartment buildings, group living quarters, and loft-style housing, and encourage owner-occupied housing, rental housing, cooperatives and co-housing. Staff Analysis: The project increases the quantity and variety of housing in the Southside by providing unusually large, 5-bedroom dwelling units, as well as group living accommodations for 20 residents. 2. Policy LU-A1.B: Require that new housing developments include units that are affordable to households that qualify as low income through the City s inclusionary housing ordinance or other regulatory mechanism. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

2398 BANCROFT WAY ZONING ADJUSTMENTS BOARD Page 14 of 15 March 13, 2008 Staff Analysis: The project includes one dwelling unit that will be affordable to lower income households (earning no more than 80 percent of area median income). 3. Policy LU-A1.E: Adopt zoning regulations for new R-SMU and R-S zoning districts with relaxed standards pertaining to parking, open space, lot coverage, and setbacks to encourage additional housing development. Staff Analysis: As noted in Table 4 and in Key Issues above, the project complies with the draft R-SMU regulations. Without reduced parking, lot coverage and setback requirements, the project would not be feasible and the proposed housing would not be created. 4. Policy LU-B1: Consider opportunities to provide open space as part of potential future housing at sites such as the Ellsworth parking lot and other large scale development projects. 5. Policy LU-D3: Improve the pedestrian environment along Bancroft Way with better bus stops, wider sidewalks wherever possible, sidewalk lighting, additional street trees, and other streetscape amenities. Staff Analysis: The project provides a new, highly visible entry courtyard at the corner of Bancroft Way and Dana Street. 6. Policy LU-C1: Suitable sites that are the highest priority for redevelopment and reuse in the Southside, in order of priority, include: C. Underutilized lots with single-story structures that are not historically significant resources on Bancroft, Durant, and Telegraph. 7. Policy LU-D1: Encourage development of infill buildings along the south side of Bancroft Way so that it becomes a more vital corridor serving students and other users of the Southside. Staff Analysis: The project site is located on Bancroft Way and is currently developed with a non-historic single-story structure. As discussed in Key Issues above, the proposed building highlights this prominent corner and adds beauty and interest without competing with the other notable buildings in the vicinity. 8. Policy LU-F7: Allow in the Residential Mixed Use Subarea a variety of different land uses including housing; university facilities, offices and student support services; religious, social and cultural institutions with associated offices, facilities and ancillary uses; educational uses; recreation facilities; hotels; appropriate neighborhood-serving retail uses and parking garages. Mixed-use developments that include housing are the preferred use. Staff Analysis: The project is a mixed-use development that includes housing. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

ZONING ADJUSTMENTS BOARD 2398 BANCROFT WAY March 13, 2008 Page 15 of 15 9. Policy LU-F12: Utilize the Southside Plan design guidelines to ensure that the design of new buildings is compatible with existing buildings in the Residential Mixed Use Subarea and will not detract from the significance of nearby landmark and historically significant buildings and sites. Staff Analysis: As discussed in Committee Review above, the DRC has granted the project a unanimous favorable recommendation. 10. Policy LU-F17: Encourage and support transit and other alternatives to automobile use in the Southside. A. Amend the Zoning Ordinance to eliminate residential parking requirements in the Car- Free Housing Overlay area shown on Map LU-10. B. Residents of new housing that is constructed without parking in the Car-Free Overlay area shall not be eligible for Residential Parking Permits. C. In the C-T, R-SMU and R-S subareas, new development shall pay a Transportation Services Fee (TSF) that will be used to fund transit, pedestrian and bicycle related programs needed for the mobility of new residents and employees of the area. Staff Analysis: The project is consistent with this policy because it does not create new parking spaces, it prohibits RPP permits for residents, and it provides substantial bicycle parking. The TSF has not been adopted by the City Council and cannot be collected for this project. VI. Recommendation Because of the project s consistency with the Zoning Ordinance (as modified by State density bonus provisions), General Plan, and Draft Southside Plan, and its minimal impact on surrounding properties, Staff recommends that the Zoning Adjustments Board APPROVE Use Permit #06-10000140 pursuant to Section 23B.32.040 and subject to the attached Findings and Conditions (see Attachment 1). Attachments: 1. Findings and Conditions 2. Project Plans, received January 2 and March 6, 2008 3. Photos 4. Notice of Public Hearing 5. Applicant Statement 6. Parking Study 7. Density Bonus Analysis (includes pro forma) 8. Housing Department Memo Regarding Applicant s Pro Forma 9. Correspondence Received Staff Planner: Aaron Sage, AICP, asage@ci.berkeley.ca.us, (510) 981-7410 File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\ZAB 03-13-08 2398 Bancroft.doc

2398 Bancroft Way Use Permit #06-10000140 CEQA FINDINGS Attachment 1 Findings and Conditions MARCH 13, 2008 1. The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA, Public Resources Code 21084, et seq.) pursuant to Section 15332 of the CEQA Guidelines (Class 32 In-Fill Development Projects ), as follows: a. The project is consistent with the applicable General Plan designation and applicable General Plan policies (see General Plan and West Berkeley Plan Consistency below), as well as with the applicable zoning designation and regulations. While the project does not comply with R-4 lot coverage and setbacks, these aspects of the project are requested as modifications and concessions pursuant to State density bonus law, and Section 23C.12.050 of the Zoning Ordinance requires the City to grant density bonuses and concessions pursuant to State law. b. The project occurs within the Berkeley city limits on a project site of no more than five acres, and is surrounded by urban uses. c. The site is already developed and has no value as habitat for endangered, rare or threatened species. d. The project would not result in any significant effects relating to traffic, noise, air quality or water quality. e. The site is already served by required utilities and public services, which will also adequately serve the project. Furthermore, the project does not meet any of the exceptions in CEQA Guidelines Section 15300.2. In particular, the project will not have any significant effects due to unusual circumstances, nor any cumulatively significant impacts, nor will it adversely impact any designated historical resources. GENERAL NON-DETRIMENT FINDINGS 2. Pursuant to BMC Section 23B.32.040, the Zoning Adjustments Board finds that project will not, under the circumstances of the particular case existing at the time at which the application is granted, will not be detrimental to the health, safety, peace, morals, File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

FINDINGS AND CONDITIONS 2398 BANCROFT WAY Page 2 of 13 March 13, 2008 comfort or general welfare of persons residing or working in the area or neighborhood of such proposed use or be detrimental or injurious to property and improvements of the adjacent properties, the surrounding area or neighborhood or to the general welfare of the City for the following reasons: A. The proposed 4-story height is well suited to this neighborhood. The neighborhood contains a dramatic mixture of building sizes and styles and is fairly intensely developed, particularly given the presence of very large UC buildings to the immediate north, and tall buildings to the south such as the Berkeley City Club (2315 Durant Avenue) and the Unit 3 student dormitories at Durant and Dana. B. The project highlights this prominent corner and adds beauty and visual interest without competing with the other notable buildings in the vicinity. By wrapping around the oak tree at the corner of the site, articulating the building s mass into three distinct wings, and using various roof forms and window shapes, the project draws upon the best elements of its setting, resulting in an attractive addition to this visually prominent site. C. The project will be compatible with surrounding land uses, which are similar to those of the project. D. The project will improve the pedestrian environment and appearance of the site by redeveloping an under-utilized property with an attractive mixed use building. E. The project will provide one five-bedroom affordable housing unit, thereby helping to meet the City s affordable housing goals. F. The project advances sustainability goals and policies by providing new housing in close proximity to the University, downtown Berkeley, public transportation and jobs, in a building with substantial green features such as photovoltaic roof panels. G. The project will not create substantial new traffic or parking demand given its orientation to UC students and its close proximity to the University, downtown Berkeley, and public transportation. DENSITY BONUS FINDINGS 3. Pursuant to Government Code Sections 65915(b), and BMC Section 23C.12.050.A, the Zoning Adjustments Board (ZAB) makes the following findings for density bonus entitlements: A. The project is entitled to a density increase of 35 percent over the otherwise maximum allowable residential density under the Zoning Ordinance and General Plan Land Use Element, under the requirements of Government Code Section File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

2398 BANCROFT WAY FINDINGS AND CONDITIONS Page 3 of 13 March 13, 2008 65915(b) and (g)(1), plus two additional concessions or incentives as set forth in Finding 4 below. B. Under the City s methodology for implementing density bonuses under Section 65915, the base project for the proposed project consists of underground parking, religious assembly space on the ground floor, and 5 residential units on the second and third floors, with an average unit size of 1,435 square feet. C. The applicants have proposed and agreed that one (20 percent) of the units in the 5-unit base project will be affordable for lower income households, as more fully set forth below in Condition of Approval 35. This entitles the applicants to a minimum density bonus of 1.75 units (35 percent), which is rounded up to 2.0 pursuant to Section 65915(g)(5). The 2-unit bonus has a total area of 2,870 square feet. The applicant is only proposing one density bonus unit (for a total of 6 units), but is expanding the 5 base project units consistent with the area of a 2-unit bonus. 4. In accordance with Government Code Section 65915, the ZAB hereby grants waivers to: a) allow lot coverage of 70.5 percent where 40.0 is normally allowed for a 4-story building; b) allow reduced setbacks on the north, east, and southeast sides of the building; and c) allow provision of 8 off-street parking spaces where 11 spaces are normally required. The basis for this decision is as follows. A. This project qualifies for a density bonus as stated in Finding 3.C above. B. Government Code Section 65915(e) allows the applicant to request waivers or modifications of development standards in order to construct a project proposed under State density bonus law. The law requires a local government to waive development standards if these standards would preclude construction of density units in a particular proposed project. C. The density bonus units cannot be accommodated within the otherwise maximum allowable residential building envelope of the R-4 District, which allows up to 3 stories (without an additional Use Permit) and lot coverage of 45 percent, and requires setbacks on all sides, including at street frontages, and therefore the R-4 standards must be modified to accommodate the density bonus units. In this case, consistent with the applicant s request and the Design Review Committee s (DRC) recommendations, the ZAB waives and/or modifies the applicable lot coverage and setbacks at the east and southeast sides for the following reasons: 1. Rather than increasing the height and meeting the required setbacks and lot coverage, these modifications allow the project to maintain a height and bulk arrangement that is more consistent with the scale and character of the surrounding area and is favored by the DRC, the Berkeley Architectural Heritage Association, and members of the surrounding community. The DRC also reviewed an alternate 5-story design for the project that would have required fewer Variances due to its reduced coverage and increased setbacks. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

FINDINGS AND CONDITIONS 2398 BANCROFT WAY Page 4 of 13 March 13, 2008 Although the DRC ultimately granted a favorable recommendation to this design as well, it expressed a strong preference for the 4-story design. One of the DRC s comments regarding the 5-story design was that the building s relationship to the sidewalk would be better with no setback, as well as more consistent with the Draft Southside Plan. 2. Concentrating the density bonus at the southeast portion of the building, rather than in the central part of the site where fewer setback modifications would be required, results in a more prominent, urban building form that is more appropriate to the site context. 3. The above modifications would also allow about 900 square feet of additional non-residential space at the southeast portion of the ground floor. Although modifications are normally used for residential space, the additional nonresidential space is permissible under Section 65915(d)(3) because it supports the residential space on the floors above and results in a more attractive and pedestrian-friendly façade. It would not be feasible to locate residential space in this portion of the ground floor because the space is too small to accommodate a full unit, and the proposed religious assembly space is a more appropriate use given the fairly busy street frontage and the other religious assembly and institutional uses in the vicinity. D. As provided in Government Code Section 65915(d)(2)(B), the applicant has requested the following concessions: (1) a Variance to reduce the project s parking requirement from 11 spaces to 8; and (2) additional building volume on the north side, requiring Variances to further increase the lot coverage (to 70.5 percent) and to waive the setback on Bancroft Way. The Zoning Adjustments Board grants these concessions based on the following: 1. The applicants have demonstrated, and staff has verified, that the concessions are necessary to provide for the project s affordable housing costs, because the density bonus does not fully provide for these costs. 2. The concessions would not have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources. 3. Based on Findings 4.E(1) and (2) above, and pursuant to Government Code Section 65915(d)(1), there is no basis for the City to deny the requested concessions. 4. A setback from Bancroft Way is not appropriate in this more urban setting, whereas having the building meet the Bancroft street frontage is consistent with the DRC s recommendations and with generally accepted urban design principles. The reduced setback will also enhance the pedestrian environment File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

2398 BANCROFT WAY FINDINGS AND CONDITIONS Page 5 of 13 March 13, 2008 and strengthen the building s connection to the public right-of-way by locating the main entry and meeting space immediately adjacent to the sidewalk. OTHER REQUIRED FINDINGS 5. (Demolition) Pursuant to BMC Section 23C.08.050.D, the Zoning Adjustments Board finds that the proposed demolition will not be materially detrimental to the commercial needs and public interest of any affected neighborhood or the City, because: (1) the Landmarks Preservation Commission determined that the existing building does not have sufficient historical significance to be designated as a landmark or structure of merit, (2) the building will be replaced by new religious assembly space, and (3) the demolition is required to allow the proposed mixed-use building, which provides numerous community benefits including affordable housing. 6. (Joint Use Parking Agreement) Pursuant to BMC Section 23D.12.060, the Zoning Adjustments Board finds that (1) the off-street parking spaces designated for joint use are located within 800 feet of the use to be served; (2) the times demanded for these parking spaces will not conflict substantially between the use offering the spaces and the use to be served; and (3) The off-street parking spaces designated for joint use are not otherwise committed to satisfying the parking requirements for some other use at similar times. STANDARD CONDITIONS 1. Conditions Shall be Printed on Plans The conditions of this Permit shall be printed on the first sheet of each plan set submitted for a building permit pursuant to this Use Permit, under the title Use Permit Conditions. The second sheet may also be used if the first sheet is not of sufficient size to list all of the conditions. The sheet(s) containing the conditions shall be of the same size as those sheets containing the construction drawings; 8-1/2 by 11 sheets are not acceptable. 2. Applicant Responsible for Compliance with Conditions The applicant shall ensure compliance with all of the following conditions, including submittal to the project planner of required approval signatures at the times specified. Failure to comply with any condition may result in construction being stopped, issuance of a citation, and/or modification or revocation of the Use Permit. 3. Uses Approved Deemed to Exclude Other Uses (Section 23B.56.010) A. This Permit authorizes only those uses and activities actually proposed in the application and exclude other uses and activities. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

FINDINGS AND CONDITIONS 2398 BANCROFT WAY Page 6 of 13 March 13, 2008 B. Except as expressly specified herein, this Permit terminates all other uses at the location subject to it. 4. Modification of Permits (Section 23B.56.020) No change in the use for which this Permit is approved is permitted unless the Permit is modified by the Zoning Adjustments Board, in conformance with Section 23B.56.020.A. Changes in the plans for the construction of a building or structure may be modified prior to the completion of construction, in accordance with Section 23B.56.030.D. The Zoning Officer may approve changes to plans approved by the Board, consistent with the Board s policy adopted on May 24, 1978, which reduce the size of the project. The Zoning Officer may also approve a maximum two-foot variation to Board approved plans, provided, that such variation does not increase a structure s height, reduce the minimum distance to any property line, and/or does not conflict with any special objective sought by the Board. 5. Plans and Representations Become Conditions (Section 23B.56.030) Except as expressly specified herein, the site plan, floor plans, building elevations and any additional information or representations submitted by the applicant during the Staff review and public hearing process leading to the approval of this Permit, whether oral or written, which indicated the proposed structure or manner of operation are deemed conditions of approval. 6. Subject to all City and Other Regulations (Section 23B.56.040) The approved use and/or construction are subject to, and shall comply with, all applicable City Ordinances and laws and regulations of other governmental agencies. 7. Exercised Permit for Use Survives Vacancy of Property (Section 23B.56.080) Once a Permit for a use is exercised and the use is established, that use is legally recognized, even if the property becomes vacant, except as set forth in Standard Condition #8 below. 8. Exercise and Lapse of Permits (Section 23B.56.100) A. A permit for the use of a building or a property is exercised when, if required, a valid City business license has been issued, and the permitted use has commenced on the property. B. A permit for the construction of a building or structure is deemed exercised when a valid City building permit, if required, is issued, and construction has lawfully commenced. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

2398 BANCROFT WAY FINDINGS AND CONDITIONS Page 7 of 13 March 13, 2008 C. A permit may be declared lapsed and of no further force and effect if it is not exercised within one year of its issuance, except that permits for construction or alteration of structures or buildings may not be declared lapsed if the permittee has (1) applied for a building permit or (2) made substantial good faith efforts to obtain a building permit and begin construction, even if a building permit has not been issued and/or construction has not begun. ADDITIONAL CONDITIONS Pursuant to BMC Section 23B.32.040.D, the Zoning Adjustments Board attaches the following conditions to this Permit: Prior to Issuance of Any Building Permit: 9. Prior to applying for a building permit, the applicant shall file an Address Assignment Request Application with the Permit Service Center (2120 Milvia Street) for any address change or new address associated with this Use Permit. The new address(es) shall be assigned and entered into the City s database prior to the applicant s submittal of a building permit application. 10. Prior to issuance of a building permit, the applicant shall complete and submit an updated Draft GreenPoint Checklist to the project planner, with comments on any revisions to the project that affect the project s green building score. 11. Prior to issuance of a building permit, the applicant shall provide the project planner with the name and telephone number of the individual empowered to manage construction noise from the project. The individual s name, telephone number, and responsibility for noise management shall be posted at the project site for the duration of construction in a location easily visible to the public. The individual shall record all noise complaints received and actions taken in response, and submit this record to the project planner upon request. Noise Management Individual Name Phone # 12. Prior to issuance of a building permit, the applicant shall complete a Construction and Demolition Recycling Plan, submit the plan to the Solid Waste Management Division for approval, and attach the approved plan to the construction drawings. The plan is available at www.ci.berkeley.ca.us/onlineservice/forms.htm#planning (look under Land Use Planning ) or by contacting Land Use Planning at 510-981-7410. After completing the form contact Solid Waste Management at 981-6368 for approval. City Monitor: Solid Waste Mgmt. Staff Signature Date File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

FINDINGS AND CONDITIONS 2398 BANCROFT WAY Page 8 of 13 March 13, 2008 13. Prior to issuance of a building permit, the applicant shall secure the City Traffic Engineer s approval of a construction traffic management plan. Please contact the Office of Transportation at 981-7010, or 1947 Center Street, 3 rd floor, and ask to speak to a traffic engineer. In addition to other requirements of the Traffic Engineer, this plan shall include the locations of material and equipment storage, trailers, worker parking, a schedule of site operations that may block traffic, and provisions for traffic control. The City Zoning Officer and/or Traffic Engineer may limit off-site parking of construction-related vehicles if necessary to protect the health, safety, or convenience of the surrounding neighborhood. City Monitor: Traffic Engineer Signature Date 14. Prior to issuance of a building permit, the applicant shall obtain preliminary and final design review approval by the Design Review Committee, and shall incorporate all conditions of such approval into the plans submitted for building permit. Plans submitted for design review and building permit shall include the maximum feasible number of bicycle racks in the public sidewalks adjoining the site and in the side yard to the west of the proposed building, as determined by the City s bicycle planner. City Monitor: Bicycle Planner Signature Date 15. Prior to issuance of a building permit or demolition permit, the applicant shall submit to the City Forester a report by a certified arborist containing recommendations for protecting the oak tree at the northeast corner of the site during construction and demolition. The City Forester shall concur with the arborist s recommendations, and the recommendations shall be incorporated into the final drawings issued for building permit and implemented throughout construction and demolition. City Monitor: City Forester Signature Date 16. Prior to issuance of a demolition permit, a permit for the new building shall be issued. The Zoning Officer may waive or modify this requirement upon finding that earlier demolition: (1) is necessary for the applicant to secure construction financing; (2) would better serve the public interest due to the condition of the existing building and/or site; or (3) is necessary to avoid unreasonable construction delays that would otherwise occur. In such cases, the Zoning Officer may require submittal of a building permit application, appropriate fencing to secure the site after the demolition, and/or a bond to cover the cost of site fencing, maintenance, and/or security in the event the new building is not constructed. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

2398 BANCROFT WAY FINDINGS AND CONDITIONS Page 9 of 13 March 13, 2008 During Construction: 17. Prior to any excavation, grading, clearing, or other activities involving soil disturbance during the rainy season (between October 15 and April 15), the applicant shall obtain approval of an erosion prevention plan by the Building and Safety Division and the Public Works Department. 18. Construction activity shall occur only between the hours of 7:00 a.m. and 5:00 p.m. on Monday through Friday, and between 9:00 a.m. and 4:00 p.m. on Saturday. It is recognized that certain construction activities, such as the placement of concrete, must be performed in a continuous manner and may require an extension of these work hours. Prior to initiating any activity that might require such an extension, the applicant shall submit a written request to the Zoning Officer to allow extended hours for a specific period, but not to exceed 10 working days. If the Zoning Officer approves the request, then at least two weeks prior to the first use of extended hours, the applicant shall notify businesses and residents within 500 feet of the project site. A copy of such notice and methodology for distributing the notice shall be provided in advance to the City for review and approval. No construction-related activity shall occur on Sunday. 19. Where technically and economically feasible, construction activities shall not exceed the maximum sound levels specified in BMC Section 13.40.070.B.7(b). To ensure compliance, the Zoning Officer is authorized to place additional limitations on the hours of operation and/or halt construction until corrective measures are taken. 20. Equipment and trucks used for project construction shall utilize the best available noise control techniques (e.g., improved mufflers, equipment re-design, use of intake silencers, ducts, engine enclosures and acoustically-attenuating shields or shrouds) wherever feasible and necessary. No construction activity that may cause excessive off-site vibration or noise from heavy machinery such as piledrivers, drilling rigs (except as necessary for elevator, shoring, and soil testing), etc. shall be allowed. 21. Impact tools (e.g., jack hammers, pavement breakers and noise drills) used for project construction shall be hydraulically or electrically powered wherever possible to avoid noise associated with compressed air exhaust from pneumatically powered tools. However, where use of pneumatic tools is unavoidable, an exhaust muffler on the compressed air exhaust shall be used; this muffler can lower noise levels from the exhaust by up to 10dB. External jackets on the tools themselves shall be used where feasible and this could achieve a reduction of 4 db. Quieter procedures, such as drilling rather than impact equipment, shall be used whenever feasible. 22. The height and location of the proposed structure, property lines and spot elevations shall be verified by a licensed surveyor or engineer on site after foundation forms are placed, but before pouring concrete or placing construction material in its permanent position. This verification shall be to the satisfaction of the Zoning Officer. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

FINDINGS AND CONDITIONS 2398 BANCROFT WAY Page 10 of 13 March 13, 2008 23. If underground utilities leading to adjacent properties are uncovered and/or broken, the contractor involved shall immediately notify the Public Works Department and the Building & Safety Division, and carry out any necessary corrective action to their satisfaction. 24. Subject to approval of the Public Works Department, the applicant shall repair any damage to public streets and/or sidewalks by construction vehicles traveling to or from the project site. 25. All piles of debris, soil, sand, or other loose materials shall be covered at night and during rainy weather with plastic at least one-eighth millimeter thick and secured to the ground. 26. Trucks hauling debris, soil, sand, or other loose materials shall be covered or required to maintain at least two feet of board. 27. Public streets shall be swept (preferably with water sweepers) of all visible soil material carried from the site. Prior to Issuance of Occupancy Permit or Final Inspection: 28. Except as modified herein, the project shall conform to the approved plans received January 2 and March 6, 2008, and to all statements in the Use Permit. 29. Prior to issuance of an occupancy permit or final inspection approval, the applicant shall obtain final approval of the lot line adjustment shown on the approved Use Permit plans from all affected City departments and divisions, with relocation of the property line as necessary to meet setback requirements for the existing chapel to the south. 30. Prior to issuance of an occupancy permit or final inspection approval, the applicant shall either (1) provide documentation to the Zoning Officer that project residents are authorized in perpetuity to use the adjacent courtyard to the south for outdoor activities typically associated with residential open space; or (2) obtain ZAB approval of a Use Permit modification to reduce the project s usable open space requirement. 31. Prior to issuance of an occupancy permit or final inspection approval, the applicant shall update, sign, and submit an As-Built GreenPoint Checklist reflecting final as-built conditions, including the total green building score, to the project planner. 32. Prior to issuance of an occupancy permit or final inspection approval, all owners of record of the property located between 2334 and 2362 Bancroft Way (APN 055-1885- 001-04) shall sign and record with the Alameda County Clerk-Recorder a Notice of Limitation on Use of Property (available from Land Use Planning Division) and provide a copy of same to the project planner. The Notice shall restrict the use of the property and designate the off-street parking that is to serve the project at 2398 Bancroft Way. The Notice shall state that the property cannot be used so as to prevent File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

2398 BANCROFT WAY FINDINGS AND CONDITIONS Page 11 of 13 March 13, 2008 the use of the parking that is being provided in compliance with the requirements of the City, unless the City removes the Notice from the property upon submission of satisfactory evidence either that other parking spaces meeting the requirements of this Ordinance have been provided, or that the building or use has been removed or altered in use, or the Zoning Ordinance amended, so as to not longer require the parking spaces. 33. Prior to issuance of an occupancy permit or final inspection approval, the applicant shall submit copies of the lease terms to be used for the project s six dwelling units to the Zoning Officer. These terms shall specify that each unit is to be leased to a single Household as defined in BMC Section 23F.04.010, that rooms are not to be individually leased or sub-leased, that locks are not permitted on bedroom doors, and that no cooking equipment is permitted in bedrooms. The terms shall be kept on file in the Planning and Development Department. Inclusionary Housing Requirements: 34. Regulatory Agreement Required. Prior to the issuance of a building permit, the applicant shall enter into a Regulatory Agreement that implements Berkeley Municipal Code (BMC) Chapter 23C.12, Government Code Section 65915, and this Condition. The Inclusionary Agreement may include any terms determined by the City to be necessary to ensure such compliance. a. Number of Inclusionary Units and Designation of Units. The project shall include one (1) Inclusionary Unit. The Inclusionary Unit shall be unit #201 as shown on the plans received January 2 and March 6, 2008, unless the selection of other units is authorized in writing by the City, pursuant to BMC Chapter 23C.12 and the Regulatory Agreement. b. Affordability Condominium Units. If the Inclusionary Units are sold as condominiums, the sales price shall not exceed 3 times 80% of the Area Median Income ( AMI ) as of the date of the sale the unit. Allowable sale prices shall be determined in accordance with City Council Resolution No. 61,497-N.S. c. AMI shall be based on the income standards for the Oakland Primary Metropolitan Statistical Area reported by the United States Department of Housing and Urban Development (HUD). In the event HUD discontinues such standards, AMI shall be based on standards determined by the California Department of Housing and Community Development (HCD). If such HCD standards are no longer in existence, the City will designate another appropriate source or method for determining the median household income. The applicable AMI for the purpose of determining the allowable rent and allowable sales price for each unit (but not for the purpose of determining eligibility for occupancy of an inclusionary unit) shall be determined in accordance with the following table: File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

FINDINGS AND CONDITIONS 2398 BANCROFT WAY Page 12 of 13 March 13, 2008 Unit Size Applicable AMI Standard Under 400 sq. ft AMI for a one person household 400-599 sq. ft. AMI for one person household plus one quarter of the difference between the AMI for a one person household and for a two person household 600-699 sq. ft. AMI for one person household plus one half of the difference between the AMI for a one person household and for a two person household 700-849 sq. ft. AMI for a two person household 850-999 sq. ft. AMI for a three person household 1,000-1,199 sq. ft. AMI for a four person household 1,200 sq. ft or more AMI for a six person household d. The foregoing Inclusionary Housing requirements shall apply for the life of the building. Regulatory Agreement Signed City of Berkeley Housing Department e. Affordability Requirements for Units Providing Qualification for Density Bonus Under Government Code Section 65915 (Density Bonus). A. Units Providing Qualification for Density Bonus. The Unit Providing Qualification for Density Bonus shall be unit #201 as shown on the plans received January 2 and March 6, 2008, unless the selection of another unit is authorized in writing by the City, pursuant to BMC Chapter 23C.12 and the Regulatory Agreement. B. Affordability. In addition to complying with the affordability requirements of the preceding provisions concerning Inclusionary Housing requirements, the following affordability requirements shall apply: 1. If the Qualifying Unit is sold as a condominium, the sales price shall be affordable to households with an income not exceeding 80% of AMI. 2. If the Qualifying Unit is rented, the rental rate shall meet the following standard in order to comply with the requirements of the subdivision of Government Code section 65915(b). The unit shall be rented for not more than 30% of the income level for an appropriately sized household earning not more than 80% of AMI. C. Duration. The foregoing Qualifying Unit requirements shall apply for 30 years from the date a Certificate of Occupancy is issued. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

2398 BANCROFT WAY FINDINGS AND CONDITIONS Page 13 of 13 March 13, 2008 At All Times: Section 65915 Compliance City of Berkeley Housing Department 36. The Zoning Adjustments Board shall have the authority to modify or revoke the religious assembly portion of this Use Permit upon finding that the religious assembly use violates any of these conditions or is detrimental to persons residing or working in the neighborhood, to property and improvements in the neighborhood or to the general welfare of the City. In making this finding, the Board may rely upon neighborhood complaints, Police Department calls for service, and any other indicators of a recurring impact upon the neighborhood or City. 37. The applicant shall hold the City of Berkeley and its officers harmless in the event of any legal action related to the granting of this Permit, shall cooperate with the City in the defense of such action, and shall indemnify the City for any award of damages or attorney s fees that may result. 38. No Residential Permit Parking (RPP) permits shall be issued to project residents, nor shall commercial placards be issued to non-residential occupants and/or users of the site. Prior to the approval of the building permit, the project planner shall notify the Finance Department, Customer Service Center, to exclude these addresses from the address range eligible for RPP permits. 39. The six dwelling units on the second and third floors shall be designed for, and occupied exclusively by, persons living as one household, as defined in Zoning Ordinance Section 23F.04.010 (Definitions). Locks shall not be permitted on bedroom doors, and no cooking equipment shall be allowed in bedrooms. Upon request of the Zoning Officer, the property owner shall provide copies of active leases for review for consistency with this condition. In order to maintain tenants privacy, and due to the proprietary nature of the leases, such leases shall not be available for public review. File: G:\LANDUSE\Projects by Address\Bancroft\2398\UP 06-10000140\ZAB Docs\F&C 2398 Bancroft.doc

ATTACHMENT 7 ZAB 03-13-08 Page 1 of 7 Density Bonus Analysis 2398 Bancroft Way March 6, 2008 The following narrative complements the attached Density Bonus Feasibility Analysis spreadsheet. It shows the financial impact that the inclusionary housing requirement has on the project and how the additional area granted through the Density Bonus units, modifications, and concessions work to recover some of the lost revenue. Please refer to the attached Density Bonus Schematics for graphic depictions of this analysis, the attached Density Bonus Tables and to the attached Density Bonus Feasibility Analysis for financial details. A. Base Project. (Column A) The Base Project (BP) consists of a project that conforms to the R-4 zoning requirements in all respects but also includes two 5-bedroom units on the 4 th floor that would accommodate Group Living Accommodations (GLA) for 20 residents. This floor and the GLAs are being requested pursuant to an additional Use Permit. This hybrid BP is the allowable project without Inclusionary Housing, Density Bonus or concessions and makes the feasibility analysis more clear. The BP is a 60, 4-story building with 45% lot coverage (45% lot coverage is allowed because the true Base Project is 3 stories, not 4). 10 parking spaces are required, 4 are provided in a below-grade garage and 6 are provided off-site. The ground floor is 3,588 gsf of Wesley program space. The 2 nd floor is comprised of two 5-bedroom units in 3,588 gsf. The third floor consists of one 5-bedroom unit, one 2-bedroom unit, and one 3- bedroom unit bringing the total Dwelling Unit count to five. The average unit size of 1,435 sf equals the gsf of residential area divided by five units (7,176 5 units = 1,435 sf). The 4 th floor would consist of two 5-bedroom units that would accommodate Group Living Accommodations (GLA) for 20 residents. An additional UP would be required for GLA. R-4 allows one GLA resident per 350 sf of lot area (7,975 350 = 22.7 residents allowed). The building would be constructed out of Type V, wood frame construction with a construction hard cost estimated at $200/sf. The net annual cash flow is projected at $51,675. B. Inclusionary Housing. (Column B) As required by the Inclusionary Ordinance, the BP will provide 20% of the units for low income residents. This equals one unit (5 x 20% = 1). Although the units are of varying size, the project will provide one of the 5-bedroom units as an inclusionary unit at 80% of Area Median Income (AMI). The 1

ATTACHMENT 7 ZAB 03-13-08 Page 2 of 7 approximate size of the unit is 1,450 sf with an applicable rent of $1,944/month. The GLA area is not subject to the Inclusionary Ordinance. The project is identical in all other ways to the BP. The net annual cash flow is projected at -$28,763 making the cost of providing the inclusionary housing equal to a loss of $80,438. C. Density Bonus. (Column C) The project seeks a 35% density bonus (DB) as allowed when 20% of the BP is offered to low-income residents (81% AMI and below). This is calculated as 35% of 5 units. (5 X 35% = 1.75). The state law requires that fractional units are rounded up so 2 units are allowed to be added. The average BP unit size is 1,435 sf so an area equal to two units at this size are provided as the DB (2 X 1,435 = 2,870 sf.) The area is applied as one 5-bedroom unit on the 2 nd floor and 1,435 sf of area which is applied to the 2-bedroom unit and the 3-bedroom unit on the 3 rd floor, making both of these units into 5-bedroom units. The resulting unit count is 6 units, 3 on the 2 nd floor and 3 on the 3 rd floor. Setback requirements on floors 2 and 3 along the North, South and East sides of the building would be modified to accommodate the additional DB area. (See attached Density Bonus Schematics). A portion of the DB area would also be used to modify setbacks along the East and South sides of the 4 th floor. The East and South setbacks of the ground floor would also be reduced to allow the exterior walls above to align with the ground floor. The project would still be built out of Type V wood framing with a construction hard cost estimated at $200/sf. The net annual cash flow is projected at $45,247 bringing the loss incurred from the inclusionary housing up from $80,438 to a loss of $6,428. The addition of the density bonus, therefore does not allow the project to regain the loss of providing the inclusionary housing. D. Final Project. (Column D) The proposed project requests two concessions as allowed under state law - to be granted to help accommodate the loss in revenue from the inclusionary housing. The first is a parking reduction from 11 spaces to 8. These 8 spaces would be provided off-site in the Trinity United Methodist Church parking lot next door to the project. One off-site space would be reserved for a car sharing service. The other concession requested is to modify the required setbacks as follows: The Bancroft Way side setback would be reduced from 15 to 0 on all floors. This would allow the massing of the building to pull away from the heritage oak tree and enlarge the shared Trinity Courtyard. A much more usable building footprint is also created. The smaller setback along Bancroft Way is appropriate in the context of many other nearby buildings that are built to the property line or close to it. The additional area gained from these modified setbacks does not add additional bedrooms or units. The space would be used for additional common areas on the ground floor including a student lounge, study room and meeting hall. Also, each residential unit would be allowed larger common areas and one additional bathroom would be added to each unit. No additional bedrooms would be added. The rents are increased as a result of the enlarged units and additional common area. The additional setback modifications to the ground floor are important and make sense for several reasons: First, the modified setbacks are required to make the project financially feasible as shown in the Density Bonus Feasibility Analysis. Secondly, the 2

ATTACHMENT 7 ZAB 03-13-08 Page 3 of 7 reduction of these setbacks allows the ground floor to align with the residential floors above which are modified by the density bonus. Without this alignment, the aesthetics of the building and its buildability would be severely compromised. In addition, the buildable area of the lot is constrained by a large Coast Live Oak Tree on the NE corner of the site. This tree is protected by Berkeley s Oak Tree Removal Ordinance (Ord. No. 6462-N.S.) If the tree did not exist the building footprint could be extended into that area and not into the required setback. In essence, the spirit of the setback requirement to allow some open space along the sidewalk is achieved because of the 28 x 32 area created to embrace the Oak Tree at the corner of the site. Lastly, this setback will conform once the Southside Plan takes effect. While we cannot expect a plan that is not yet adopted to govern the requirements of this project, we can expect that it be given consideration especially because the Southside Plan has gone through years of public involvement and vetting, and is currently pending an EIR slated for public comment in early 2008 and is scheduled for approval sometime this year. The estimated construction hard cost for the final project is $200/sf. The net annual cash flow is projected at $48,292 which brings the net loss per year to $3,383, still a negative number but significantly decreased from a loss of $28,763. The yield (NOI/Project Costs) at 6.6% is also an acceptable number that makes financing the project feasible. Conclusion. The conclusion of this analysis is that both the density bonus and the two concessions do not yield enough positive financial benefit to completely recoup the loss incurred by the required inclusionary housing. They do, however, make a significant difference and the final project is feasible. Thus, the density bonus and the two concessions; a parking reduction and modified setbacks should be granted. 3

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