City of San Juan Capistrano Agenda Report

City of San Juan Capistrano Agenda Report TO: FROM: DATE: Planning Commission Development Services Department Submitted and Reviewed by,s~r9j9 Klotz, AICP, Assistant Development Services Director ~ Prepared by Mathew Evans, Contract Planner"} Y1 ~ August9,2016 SUBJECT: Continued consideration of Tentative Parcel Map 2015-183 (TPM 16-001), Medical Office Building: a Parcel Map to subdivide Lot 217 of Tract Map 12954 into two (2) new parcels located northwest of the intersection of Golf Club Drive and Rancho Viejo Road east of Interstate 5 and west of the Marbella Golf Course, (APN: 650-692-01 and 02) (Accretive San Juan Partners, LLC). RECOMMENDATION: By motion: 1. Adopt a resolution recommending that the City Council conditionally approve Tentative Parcel Map (TPM) 2015-183; and, 2. Appoint a Representative and an Alternate Representative to attend the City Council meeting to represent the view of the Commission and to answer any questions the City Council may have. OWNER/APPLICANT: Applicant DRC Engineering, Inc. 160 S. Old Springs Road Anaheim Hills, CA 92808 Property Owner: Accretive San Juan Partners, LLC 19852 McCarthur Boulevard Irvine, CA 92612 EXECUTIVE SUMMARY: Warren Williams on behalf of Accretive San Juan Partners, LLC (the "Applicant") requests approval of Tentative Parcel Map (TPM) 2015-183 to subdivide an existing

Planning Commission Agenda Report August 9, 2016 Page 2 of 8 developed lot (Lot 217) within the recorded Tract Map 12954. The lots would take access from Marbella Plaza and via the driveway of the Medical Office Building. ANALYSIS: General Location: General Plan Land Use Designation: The project site is generally located south of the intersection at Golf Club Drive and Rancho Viejo Road east of Interstate 5 and west of the Marbella Golf Course. Public & Institutional (parcel 1) and General Open Space (parcel 2) Zoning Map Designation: Office Commercial (CO) (parcel 1) and Natural Open Space (OS) (parcel 2) within Comprehensive Development Plan (COP) 86-04 Surrounding General Plan Designations, Zoning, and Existing Land Uses: Direction General Plan Land Use Zoning Use North Open Space Residential COP 86-04 Open Space South Neighborhood COP 86-04 Public Street/ Commercial Freeway East Medium Low Density/ COP 86-04 Public Street/ Open Space Residential Golf Course West N/A- Interstate 5 N/A- Interstate 5 Freeway BACKGROUND/DISCUSSION: This item originally came before the Planning Commission at their June 28, 2016 meeting where a staff presentation was given, the public hearing was opened and closed, and questions were asked of the applicant. Ultimately, the Planning Commission voted unanimously to continue the item to the July 12, 2016 meeting and asked that the property owners, or representative, appear before the Planning Commission to answer questions regarding the future use of proposed Parcel 2. At the July 12, 2016 meeting, the applicant requested a continuance due to the fact that a representative of the owner could not attend. The item was then continued to the current August 9, 2016 meeting. During staff's presentation of the item, the Planning Commission brought up additional issues that they wanted addressed. Although staff did speak to these issues at the meeting, staff believes that they deserve additional discussion. Those issues included:

Planning Commission Agenda Report August 9, 2016 Page 3 of 8 Clarification of the potential future use of proposed Parcel 2 (the Open Space parcel); Was the Open Space parcel included within the calculated Floor Area Ratio for the San Juan Medical Office building; and Why the requirement for CC&R's were removed from the Conditions of Approval. With respect to the potential future use of proposed Parcel 2, as noted in the staff report below, proposed Parcel 2 is identified within Section 5.3.1 0 of the Marbella COP as Open Space. A copy of this section has been provided below: 5.3.10 Open Space (AOS~) Olstrict Regulations 5.3.10.1 Purpoae and Intent As indicmed in the Open Space PreseNation (OS) District regulation$. SoctiOn 9 3.421 of Um Municipal Code. 5.3.10.2 Principal Uses and Struc.tur.a. Opon space usos, public and private, which emphasize the natural character of the tand with no building oovolopment. \ Flood control channels and related Wuctures \ Parks \ Trails. X Bikeways. 5.3. 10.3 Development Standards As <fldicated IO< the Op n Space Presetllation los) Distrw:t in Sect1on 9-3.424 ol the Municipal Co<!o Under this section, Open Space uses are subject to the development standards as listed within Section 9-3.421 of the San Juan Capistrano Municipal Code. This section was changed to 9-3.309 since the adoption of the Marbella COP. This section of the code lists the allowed uses within the Natural Open Space (NOS) district, which applies to proposed Parcel 2. Table 3-10 of the Municipal Code lists the permitted, conditionally permitted and accessory uses allowed within the NOS. The only permitted and conditional uses shown within this table include: Bed and Breakfast (Conditional) Cemeteries (Conditional) Churches (Conditional) Animal Grazing (Permitted) Farming (Permitted) Mining, oil drilling, or other resource extraction (Conditional) Picnic Area (Permitted) Public Facilities (Permitted); and Radio and television towers and installations, radar installations, microwave relay stations, and cellular towers and installations (commerciai)(conditional)

Planning Commission Agenda Report August 9, 2016 Page 4 of 8 With respect to the question regarding the Open Space parcel being used to calculate maximum FAR for the San Juan Medical Offices, staff has confirmed that the Open Space parcel was not included within the calculations, nor was the Open Space parcel identified within the CEQA analysis for the project. With respect to the question as to why the CC&R requirement was removed from the Conditions of Approval, the applicant made this request. Previous Discussion Lot 217 of Tract Map 12954 is a 4.8 acre parcel located within the Marbella Golf and Country Club Comprehensive Development Plan (COP), which was adopted by the City Council on June 16, 1987 by Ordinance No. 597, and as amended by the City Council in 2007. An aerial Photo, General Plan Land Use Map and Zoning Map are also provided (Attachment 2). The property was identified within the Land Use Features Distribution and Population section of the COP with two designations, which includes: Commercial Office (CO) - a 3.43 acre, single-parcel within the southwest portion of the project site identified as a potential professional or medical office; and Natural Open Space - a 1.37 acre, single-parcel for public and private uses which emphasize the natural character of the land with no building development. Until recently the property was owned by the City of San Juan Capistrano and at one time was under consideration as a fire station site, but was eventually sold to the current owners. In 2013, the City approved the recently completed San Juan Medical Center (AC 13-019), which includes a two-story, 42,550 square foot medical office building with two parking areas containing 191 stalls. The applicant is requesting to subdivide the existing lot into two (2) parcels; Parcel 1, which would be 3.43 acres and would include the Medical Office Building, parking lot and associated landscaping; and Parcel 2, which would be 1.37 acres and include the non-buildable open space parcel that is currently landscaped with trees, shrubs and ground cover. Both parcels will continue to be owned and maintained by the current property owners. The proposed split of the property occurs generally at the same location that both properties are split within the COP separating the Commercial Office and Natural Open Space designations. The ultimate Parcel Map is for financing purposes only, and the subdivision of the Lot into two parcels does not create a new building lot as the Marbella COP specifically states that the Open Space designation is not intended for building development.

Planning Commission Agenda Report August 9, 2016 Page 5 of 8 Site Improvements/Access: The site has been previously developed and no new site improvements are proposed as part of this request, the division of the lots is for financing purposes only. Parcels 1 and 2 are subject to the previous entitlements which allows for the professional office to continue in perpetuity, and prohibits any further development of parcel 2, as it is a permanent open space lot that is to remain landscaped and maintained, also in perpetuity. Both parcels have shared frontage and have access to Rancho Viejo Road. Tentative Parcel Map: Tentative Parcel Maps are governed, in part, by Section 9-4.223 of the City's Municipal Code, and requests may be granted when it can be shown that the following findings can be established: 1) The proposed map is consistent with the General Plan and any applicable specific plan or comprehensive development plan. 2) The design or improvement of the proposed subdivision is consistent with the General Plan and any applicable specific plan or comprehensive development plan. 3) The site is physically suitable for the type of development. 4) The site is physically suitable for the proposed density of development. 5) The design of the subdivision or the proposed improvements is not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat. 6) The design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. If these findings can be made, then it is appropriate to grant the Tentative Parcel Map. Conversely, the inability to make even one of these findings would result in a denial. Using this information, staff has prepared the following analysis, which, in turn forms the basis for the recommendation contained in this report. In analyzing the Tentative Parcel Map request, staff believes the following findings of fact warrant approval of the Tentative Parcel Map: 1) The proposed map is consistent with the General Plan and any applicable specific plan or comprehensive development plan because both proposed parcels fall within the Marbella Comprehensive Development Plan 86-04 and are identified within the Land Use Features Distribution and Population section of the COP as "Commercial

Planning Commission Agenda Report August 9, 2016 Page 6 of 8 Office" (CO) for parcel 1, and "Open Space" (OS) for parcel 2. The proposed map will not change the General Plan and Comprehensive Development Plan designations; therefore compliance with this finding is achieved due to the fact that the Parcel Map is consistent with the Marbella CDP. 2) The design or improvement of the proposed subdivision is consistent with the General Plan and any applicable specific plan or comprehensive development plan because the proposed TPM is for financing purposes and does not have a related project, a "proposed subdivision" (other than the TPM), or any other proposed improvements; therefore compliance with this finding is achieved due to the fact that the proposed TPM is consistent with the General Plan and the Marbella CDP. 3) The site is physically suitable for the type of development because the proposed TPM is for financing purposes and does not have an associated project or development. Furthermore, the site was previously developed as a medical office building with the approval of AC 13-019; therefore compliance with this finding is achieved due to the fact that findings for site physical suitability was already determined and the TPM does not propose new development. 4) The site is physically suitable for the proposed density of development because the site was previously developed and has adequate services, and the proposed TPM is for financing purposes only; therefore compliance with this finding is achieved due to the fact that the TPM does not propose a new development or an increase to the existing density. 5) The design of the subdivision or the proposed improvements is not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat because the proposed Tentative Parcel Map is not located within or adjacent to an area that contains wildlife or habitat, and the proposed TPM is for financing purposes only; therefore compliance with this finding is achieved due to the fact that the TPM does not have an associated project or any additional proposed improvements to the property resulting in substantial environmental damage or substantially that would avoidably injure fish or wildlife or their habitat. 6) The design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision because the proposed TPM is for financing purposes only; therefore compliance with this finding is achieved due to the fact that the TPM does not have a related project, thus the proposed action will not cause conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. FISCAL IMPACT:

Planning Commission Agenda Report August 9, 2016 Page 7 of 8 There is no direct or indirect fiscal impact resulting from the requested TPM. The property has been previously developed into a medical office with landscaping and parking. All utilities, street improvements and on-site improvements were previously installed. ENVIRONMENTAL IMPACT: This project has been reviewed in accordance with the California Environmental Quality Act (CEQA) and it was determined that the project is categorically exempt per Section 15315, Class 15 of the CEQA Guidelines because the project is a division of property into four or fewer parcels, and because the subdivision is in conformance with the City of San Juan Capistrano General Plan and zoning code, and because no variances or exceptions requiring environmental review are required, and all required services and access to the parcel are available. Therefore, the proposed TPM is exempt from further environmental review. None of the exceptions to the use of the above categorical exemption applies. The project site is located in an urbanized area, surrounded by existing development, and not in a particularly sensitive environment. There is no potential for cumulative impacts from successive projects in the same location, as there is no future potential for these parcels to be further divided, consistent with the General Plan and Specific Plan. There are no unusual circumstances relating to the surroundings, the project, or potential impacts. The project is not located within an officially designated scenic highway, and there is no record of hazardous waste on the property. Finally, the project has no potential to impact historic resources, as both parcels have already been developed in some fashion; parcel 1 is an existing office building, and parcel 2 is a landscaped open space area. A Notice of Exemption (NOE) will be posted should the project receive final approval. NOTIFICATION: Pursuant to Title 9, Land Use Code, Section 9-2.302(f), Notification Procedures, a public hearing notice has been mailed to all property owners within 1,000 feet (as listed on the Orange County Real Property Tax Assessment rolls), a "Notice of Proposal" sign has been posted on-site, the hearing notice has been published in the Capistrano Valley News at least ten (10) days prior to the hearing, and has been posted at three public locations (Attachment 3). This agenda item has been provided to the Applicant and his representative through posting of the agenda packet on the City's website. ATIACHMENT(S): Attachment 1 - Attachment 2 - Resolution Aerial Photo, General Plan Land Use Map and Zoning Map

Planning Commission Agenda Report August 9, 2016 Page 8 of 8 Attachment 3 - Public Hearing Notice ENCLOSURE(S): Enclosure 1-Tentative Parcel Map 2015-183

PC RESOLUTION NO. 16-08-09-XX TENTATIVE PARCEL MAP (TPM) 2015-183 (16-001) A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA RECOMMENDING CITY COUNCIL APPROVAL OF TENTATIVE PARCEL MAP (TPM) 2015-183 (16-001) TO SUBDIVIDE LOT 217 OF TRACT MAP 12954 INTO TWO (2) NEW PARCELS LOCATED NORTHWEST OF THE INTERSECTION OF GOLF CLUB DRIVE AND RANCHO VIEJO ROAD EAST OF INTERSTATE 5 AND WEST OF THE MARSELLA GOLF COURSE, (APN: 650-692-01 AND 650-692-02) (APPLICANT: ACCRETIVE SAN JUAN PARTNERS, LLC). Whereas, Accretive San Juan Partners, LLC, 19852 McCarthur Boulevard, Irvine, CA 92612 (the "Applicant"), has requested approval of Tentative Parcel Map 2015-183 (16-001), has requested to subdivide Lot 217 of Tract Map 12954 into two (2) new parcels encompassing 4.8 acres located northwest of the intersection of Golf Club Drive and Rancho Viejo Road east of Interstate 5 and west of the Marbella Golf Course; which is General Plan-designated Public & Institutional (parcel 1) and General Open Space (parcel 2) and classified as Office Commercial (CO) (parcel 1) and Natural Open Space (OS) (parcel 2) within Comprehensive Development Plan (COP) 86-04 on the Official Zoning Map (the "Project"); and, Whereas, Accretive San Juan Partners, LLC, 19852 McCarthur Boulevard, Irvine, CA 92612, are the owners of real property located at APN 675-331-02; and, Whereas, the proposed project has been processed pursuant to Section 9-2.301, Development Review of the Land Use Code; and, Whereas, the Environmental Administrator has determined that the project is Categorically Exempt from further review pursuant to State CEQA Guidelines (Cal. Code Regs., 15000 et seq.) section 15315 (division of property into four or fewer parcels) and that none of the exceptions to the application of categorical exemptions apply; and, Whereas, the Planning Commission conducted a duly-noticed public hearing on June 28, 2016 pursuant to Title 9, Land Use Code, Section 9-2.302 and City Council Policy 5 to consider public testimony on the proposed project and has considered all relevant public comments. NOW, THEREFORE, BE IT RESOLVED, that the Planning Commission of the City of San Juan Capistrano does hereby find that the project is Categorically Exempt from further review pursuant to State CEQA Guidelines Sections, 15315. The project is exempt pursuant to State CEQA Guidelines section 15315 ("division of property into four or fewer parcels"), because the subdivision is in conformance with the City of San Juan Capistrano General Plan and zoning code, and ATTACHMENT 1

PC Resolution 16-08-09-XX 2 August 9, 2016 because no variances or exceptions requiring environmental review are required, and all required services and access to the parcel are available. The Planning Commission also finds that none of the exceptions to the use of categorical exemptions identified in State CEQA Guidelines section 15300.2 apply. The project site is not located in a particularly sensitive environment, there is no potential for cumulative impacts from successive projects in the same location, there are no unusual circumstances, the project is not located within an officially designated scenic highway, there is no record of hazardous waste on the property, and the project has no potential to impact historic resources, as the site is an existing medical office building and landscaped open space parcel. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the Planning Commission of the City of San Juan Capistrano does hereby make the following findings as established by Section 9-4.223 of Title 9, Land Use Code of the City of San Juan Capistrano: 1) The proposed map is consistent with the General Plan and any applicable specific plan or comprehensive development plan, and both proposed parcels fall within the Marbella Comprehensive Development Plan 86-04 and are identified within the Land Use Features Distribution and Population section of the COP as "Commercial Office" (CO) for parcel 1, and "Open Space" (OS) for parcel 2. The proposed map will not change the General Plan and Comprehensive Development Plan designations. 2) The design or improvement of the proposed subdivision is consistent with the General Plan and any applicable specific plan or comprehensive development plan as the proposed TPM is for financing purposes and does not have a related project, a "proposed subdivision" (other than the TPM), or any other proposed improvements; therefore compliance with this finding is achieved due to the fact that the proposed TPM is consistent with the General Plan and the Marbella COP. 3) The site is physically suitable for the type of development because the proposed TPM is for financing purposes and does not have an associated project or development. Furthermore, the site was previously developed as a medical office building with the approval of AC 13-019; therefore compliance with this finding is achieved due to the fact that findings for site physical suitability was already determined and the TPM does not propose new development. 4) The site is physically suitable for the proposed density of development because the site was previously constructed, has adequate services and because the proposed TPM is for financing purposes only; therefore compliance with this finding is achieved due to the fact that the TPM does not propose a new development or an increase to the existing density.

PC Resolution 16-08-09-XX 3 August9, 2016 5) The design of the subdivision or the proposed improvements is not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat because the proposed Tentative Parcel Map is not located within or adjacent to an area that contains wildlife or habitat. The proposed TPM is for financing purposes only; therefore compliance with this finding is achieved due to the fact that the TPM does not have an associated project or any additional proposed improvements to the property resulting in substantial environmental damage or substantially that would avoidably injure fish or wildlife or their habitat. Therefore the proposed map and proposed improvements will not cause substantial environmental damage, nor substantially and avoidably injure fish or wildlife or their habitat. 6) The design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision because the proposed TPM is for financing purposes only; therefore compliance with this finding is achieved due to the fact that the TPM does not have a related project, thus the proposed action will not cause conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the Planning Commission of the City of San Juan Capistrano hereby recommends approval by the City Council of the project subject to those conditions of approval established by Exhibit A, attached hereto and incorporated herein. NOTICE OF EXEMPTION: Planning Commission recommends that City Council direct staff to prepare and file with the County Clerk's office a Notice of Exemption within 5 days of the approval of the Project. CUSTODIAN OF RECORDS: The documents and materials associated with this Resolution that constitute the record of proceedings on which these findings are based are located at San Juan Capistrano City Hall, 32400 Paseo Adelanto, San Juan Capistrano, California 92675. The Acting Development Services Director is the custodian of the record of proceedings. PROTEST OF FEES, DEDICATIONS, RESERVATIONS OR OTHER EXACTIONS: Pursuant to Government Code Section 66020, the applicant may protest the imposition of fees, dedications, reservations or other exactions imposed on this development project by taking the necessary steps and following the procedures established by Sections 66020 through 66022 of the California Government Code. PASSED, APPROVED AND ADOPTED this 9th day of August, 2016. Mark Speros, Chairman

PC Resolution 16-08-09-XX 4 August 9. 2016 Sergio Klotz, AICP, Assistant Development Services Director/Secretary

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PLANNING COMMISSION PUBLIC HEARING NOTICE city of san juan capistrano A PUBLIC HEARING WILL BE HELD BY THE PLANNING COMMISSION OF THE CITY OF SAN JUAN CAPISTRANO ON TUESDAY, THE 28TH DAY OF JUNE, 2016 AT 6:30P.M. IN THE CITY COUNCIL CHAMBERS AT 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO TO CONSIDER THE FOLLOWING PROJECT: Tentative Parcel Map (TPM) 16-001. San Juan Medical Offices: A request to subdivide Lot 217 of Tract Map 12954 into two (2) new parcels for financing purposes located northwest of the intersection of Golf Club Drive and Rancho Viejo Road east of Interstate 5 and west of the Marbella Golf Course, Assessor's Parcel Numbers: 650-692-01 and 02 (Applicant: Accretive San Juan Partners, LLC). The project site is General Plan-designated Public & Institutional (parcel 1) and General Open Space (parcel 2) and is identified on the Official Zoning Map as Office Commercial (CO) (parcel 1) and Natural Open Space (OS) (parcel 2) within Comprehensive Development Plan (COP) 86-04. The property is subject to the land use and development standards of Comprehensive Development Plan (COP 86-04, Marbella Golf Course and Country Club. The City's Environmental Administrator has determined that the project is categorically exempt from further review per Section 15315, Class 15 of the CEQA Guidelines because the project is a division of property into four or fewer parcels. A Notice of Exemption (NOE) will be posted should the project receive final approval. You are invited to attend the public hearing to find out more about the project. If you can't attend the hearing and have questions about the project, please contact the project manager, Mathew Evans, Contract Planner at (949) 487-4314 or via e-mail at mevans@sanjuancaplstrano.org. Comments which you want to become part of the public record must be presented verbally at the hearing or in writing, by e-mail to the project manager or by letter. This project may be one of several to be considered and may be heard after the beginning of the meeting. If you challenge action on this project in court, you may be limited to raising only those issues which you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Commission at, or prior to the hearing. Should you have special needs to be accommodated in order to provide testimony at the hearing, please call the Administrative Coordinator at (949) 443-6329. Mathew Evans, Contract Planner PLANNING COMMISSION PUBLIC HEARING NOTICE city of san juan capistrano A PUBLIC HEARING WILL BE HELD BY THE PLANNING COMMISSION OF THE CITY OF SAN JUAN CAPISTRANO ON TUESDAY, THE 28TH DAY OF JUNE, 2016 AT 6:30P.M. IN THE CITY COUNCIL CHAMBERS AT 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO TO CONSIDER THE FOLLOWING PROJECT: Tentative Parcel Map (TPM) 16-001, San Juan Medical Offices: A request to subdivide Lot 217 of Tract Map 12954 into two (2) new parcels for financing purposes located northwest of the intersection of Golf Club Drive and Rancho Viejo Road east of Interstate 5 and west of the Marbella Golf Course, Assessor's Parcel Numbers: 650-692-01 and 02 (Applicant: Accretive San Juan Partners, LLC). The project site is General Plan-designated Public & Institutional (parcel 1) and General Open Space (parcel 2) and is identified on the Official Zoning Map as Office Commercial (CO) (parcel 1) and Natural Open Space (OS) (parcel 2) within Comprehensive Development Plan (COP) 86-04. The property is subject to the land use and development standards of Comprehensive Development Plan (COP 86-04, Marbella Golf Course and Country Club. The City's Environmental Administrator has determined that the project is categorically exempt from further review per Section 15315, Class 15 of the CEQA Guidelines because the project is a division of property into four or fewer parcels. A Notice of Exemption (NOE) will be posted should the project receive final approval. You are invited to attend the public hearing to find out more about the project. If you can't attend the hearing and have questions about the project, please contact the project manager, Mathew Evans, Contract Planner at (949) 487-4314 or via e-mail at mevans@sanjuancapistrano.org. Comments which you want to become part of the public record must be presented verbally at the hearing or in writing, by e-mail to the project manager or by letter. This project may be one of several to be considered and may be heard after the beginning of the meeting. If you challenge action on this project in court, you may be limited to raising only those issues which you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Commission at, or prior to the hearing. Should you have special needs to be accommodated in order to provide testimony at the hearing, please call the Administrative Coordinator at (949) 443-6329. Mathew Evans, Contract Planner ATTACHMENT 3