PLANNING COMMISSION STAFF REPORT February 19, 2015

Community Development Department Planning Division 1600 First Street + P.O. Box 660 Napa, CA 94559-0660 (707) 257-9530 PLANNING COMMISSION STAFF REPORT February 19, 2015 AGENDA ITEM #7A PL13-0091 GENERAL PLAN AMENDMENT FOR THE NAPA PIPE PROPERTY I. GENERAL INFORMATION PROJECT SUMMARY: Consideration of General Plan Amendment relating to the Napa Pipe Property. LOCATION OF PROPERTY: 1025 Kaiser Road and designated by Assessor s Parcel Numbers (APNs) 046-400-030 and 046-412-005) APPLICANT: STAFF PLANNER: Napa Redevelopment Partners, LLC Rick Tooker, Community Development Director (707) 257-9530 LOCATION MAP II. PROJECT DESCRIPTION The City of Napa is considering filing an application to the Local Agency Formation Commission of Napa County ( LAFCO ) for an expansion of the Napa s Sphere of Influence ( SOI ) and phased annexation of the Napa Pipe Property. At its January 29 th meeting, the Planning Commission took certain steps toward this effort, to include forwarding a recommendation to the City Council determining that the Napa Pipe Design Guidelines are complete and appear to adequately address the Commission s

Napa Pipe Property General Plan Amendment #13-0091 2 interests in ensuring the highest quality design for future development of the site. The Planning Commission also forwarded a recommendation to the City Council recommending that the City prezone the Napa Pipe Property to prepare for future annexation of the property (as shown in the exhibit below). MP:NP-MUR-W:AC IL:AC IL:AC MP:NP-IBP-W:AC IL:AC At that time, City staff suggested that the Developer may have to return to the Planning Commission with an application for a General Plan Amendment to ensure consistency between the City s Zoning Ordinance and General Plan. The proposed General Plan Amendment would change the City s current General Plan land use designation on the Napa Pipe Property from Greenbelt (the land use designation used by the City for land located outside its City limits) to Mixed Use for the parcel west of the railroad tracks (APN 046-400-030) and Light Industrial for the parcel east of the railroad tracks (APN 046-412-005). These are shown in General Plan Figures 1-14 and 1-15 below (see pages 6-7 of this report). Additional proposed amendments are to General Plan Table 1-5 which includes the Napa Pipe Property s Pod numbers, land use designations and floor area ratio allowance (see page 8 of this report). III. BACKGOUND This section of the report provides a description of the Napa Pipe Project and analyzes the proposed General Plan Amendment.

Napa Pipe Property General Plan Amendment #13-0091 3 In January 2013, the Napa County Board of Supervisors ( Board ) certified an Environmental Impact report for the Napa Pipe Project ( Napa Pipe Project EIR or EIR ), followed by adopting a General Plan amendment and rezoning the property in June 2013 to accommodate future development on the site. Subsequent actions by the Board also included executing a Memorandum of Understanding ( MOU ) in October 2013 establishing a process by which the City and County would work together to implement the Napa Pipe Project. The MOU recognizes that the City and County have shared goals of adequately mitigating potential project impacts on the environment and ensuring that the project does not place a burden on existing City and County residents. The MOU also acknowledges that it is in the County s interest to complete the timely consideration of the actions required for implementation of the MOU, and to permit subsequent development of the property in order to comply with affordable housing commitments in the County s Housing Element. In exchange, the County agrees in the MOU to consider and address the City s concerns as they relate to the Napa Pipe Project before water and other municipal services are provided to the project by the City and an application is filed with LAFCO to expand the Sphere of Influence ( SOI ), which is necessary to provide water service, and ultimately annex the property into the City of Napa. The MOU also contemplates modification of the City s Rural Urban Limit ( RUL ) line. The purpose of the City s RUL line is to confine urban development in the City within its boundaries. Prior to the most recent General Municipal Election on November 4, 2014, the RUL line was defined by City Charter Section 180 as including the real property within the boundaries described in the City s General Plan as of March 1999, which did not include the Napa Pipe Property. However, City voters overwhelmingly supported a ballet measure ( Measure A ) to expand the RUL to include the Napa Pipe Property within its boundaries. A General Plan amendment including the Napa Pipe Property within the SOI and RUL became effective on the date the City Council declared the results of the November 4, 2014 General Municipal Election to support amending the City s Charter. That General Plan Amendment revised the RUL boundaries and included the Napa Pipe Property into the River East Planning Subarea, but it did not identify a land use designation for the property. As provided herein, the proposal is to now amend the Greenbelt designation to Mixed Use and Light Industrial as described above. As provided in the MOU, and supported by the City s actions to amend the City s Charter and General Plan to expand the RUL, both the City and County anticipate that the Napa Pipe Property will ultimately be annexed into the City of Napa. There is still significant work to do to accomplish this goal. Last year before changes occurred on the Board and County Planning Commission, several Napa Pipe documents were introduced and approved by the Board, including the Napa Pipe Development Agreement, Development Plan, Design Guidelines and Tentative Subdivision Map. The City Council will be reviewing these documents on March 3 rd to determine if they raise any issues that must be resolved before water is committed to the property for development and an application is submitted to LAFCO to expand the SOI and for phased annexation of the property. In order to file an application with LAFCO, however, the City Council must also prezone the property (reviewed by the Planning Commission on January 29 th ) and amend the

Napa Pipe Property General Plan Amendment #13-0091 4 General Plan to reflect the allowable range of land uses on the Napa Pipe Property. The Planning Commission s action on this General Plan Amendment application is advisory to the City Council. IV. ANALYSIS Proposed development of the Napa Pipe Property is organized by areas located east and west of the existing railroad tracks. Generally proposed development in each respective area is summarized below: On the 63-acre parcel west of the railroad tracks Up to 945 residential units 150-unit 225-bed senior/assisted living facility 40,000 sq. ft. of neighborhood-serving retail and restaurant uses 25,600 sq. ft. of community-serving uses and offices 150-room hotel On the 91-acre parcel east of the railroad tracks 154,000 sq. ft. for a Costco wholesale store 165,000 sq. ft. of office, warehousing and other light industrial uses 5-acre community farm 19 acres of undesignated industrial uses classified as a future study area The current Greenbelt designation contained in the City s General Plan applies to land outside the city that is generally intended to remain in agricultural or very low density rural residential, public or institutional use. However, as contemplated in the October 2013 City-County MOU regarding the Napa Pipe Property, and supported by the Napa voters in the November 4, 2014 General Election on Measure A, the Napa Pipe Property is now being considered for future annexation into the incorporated city limits of Napa. Prior to annexation, the General Plan must be amended. The 63-acre parcel west of the railroad tracks is proposed to be re-designated Mixed Use, which is further described below (proposed new text is shown in underline and strikeout): This designation provides for a functionally integrated mix of retail commercial, office, possible light manufacturing, and higher density residential uses that are typically attached. Cultural, hospitality, entertainment and visitor oriented uses that complement and support the downtown are also allowed at appropriate locations. On key larger sites, a mix of uses, including residential uses, is strongly encouraged and may be required. On smaller sites, individual uses may be approved, but there is to be a mix of uses in the surrounding area, and creative mixed use projects are encouraged; consideration of smaller sites shall include an evaluation whether an adequate mix of uses has been provided. Residential densities shall range from 10 to 40 units per acre or 20 to 40 units per acre in MU 485, 487, 489, and 532 north (and east) of the Gasser Master Plan District** and at least 20 units per acre in MU 722 in the Napa Pipe area***. The FAR shall not exceed 2.00, except in the Napa Pipe

Napa Pipe Property General Plan Amendment #13-0091 5 area where the FAR shall be set forth in the Napa Pipe Development Plan and Design Guidelines. The 91-acre parcel east of the railroad tracks is proposed to be re-designated Light Industrial, which is further described below (proposed new text is shown in underline and strikeout): This designation provides for small-scale, manufacturing, fabrication, packaging, storage, equipment repair, and similar related uses. Also included are construction and maintenance yards, trade and technical training facilities, utility plants, and recycling centers and similar facilities. Non-industrial uses may also be allowed in appropriate locations at the discretion of the City, including live-work units and child care centers. The FAR shall not exceed 0.50, except in LI-723 (the Napa Pipe area) where the FAR shall not exceed 0.40. (amended date to be added at adoption) The exhibits below reflect the Napa Pipe Project General Plan Amendment, as presented in Figures 1-14 and 1-15 for the River East Area. The River East Area is located at the southern tip of the city, primarily extending west of the Napa/Vallejo Highway to the Napa River. Napa Valley Community College and the Kennedy Park are found in these areas, as is the Napa Commons industrial park. In July 2014, the City Council amended the General Plan to also include Napa Pipe in this area, but it was premature at that time to also change the land use designations until progress had been made on the Napa Pipe Project Development Agreement, Development Plan and Design Guidelines, and Napa s voters determined their support for Measure A.

Napa Pipe Property General Plan Amendment #13-0091 6 GENERAL PLAN FIGURE 1-14 Napa Pipe Land Use Designations MU-722 LI-723

Napa Pipe Property General Plan Amendment #13-0091 7 GENERAL PLAN FIGURE 1-15 Napa Pipe Land Use Designations MU-722 LI-723

Napa Pipe Property General Plan Amendment #13-0091 8 The MU-722 and LI-723 designations are also proposed to be added to Table 1-5 of the General Plan, which is shown below in underline (and lightly shaded to differentiate the text from the rest of the table). This table contains the Nonresidential Intensity Matrix for the Planning Area Pods including the Pod number, land use designations and the maximum floor area ratio or FAR for development in the Pods. Table 1-5 Nonresidential Intensity Matrix Pod Number Land Use Designation Maximum FAR (11) River East Planning Area 720 CP 0.4 721 MU 0.4 722 LI 0.4 723 RA * 910 PS 0.4 722 723 MU LI *** 0.4 912 PS 0.4 *** FAR shall be set forth in the Napa Pipe Development Plan and Design Guidelines. V. ENVIRONMENTAL REVIEW In July 2013, the Board approved a General Plan amendment and rezoning of the Napa Pipe Property. In support of its approvals, and as required by the California Environmental Quality Act ( CEQA ) and its implementing regulations (the CEQA Guidelines ), the County prepared and certified the Napa Pipe Project EIR. The Napa Pipe Project EIR analyzed the potential environmental effects from development on the Napa Pipe Property to include up to 945 residential units, 150 units of senior housing, a 150-unit hotel, and approximately 385,000 square feet of non-residential uses, and parks and other open space. In its Napa Pipe Project EIR, the County identified the City of Napa as a responsible agency whose actions would be required to implement the project analyzed in the EIR. Sections 15063 and 15164 of the CEQA Guidelines provide for a responsible agency taking action to implement a project that has been the subject of a certified EIR to prepare an environmental initial study to determine whether the responsible agency s proposed action is adequately supported by the certified EIR, or whether additional environmental review is required. Pursuant to applicable requirements of the CEQA Guidelines, the City prepared an Initial Study in July 2014 to determine whether the City s actions to amend its General Plan to modify the RUL line to incorporate the Napa Pipe Property and to Prezone the property, as is proposed in this advisory action by the Planning Commission, would have any environmental effects that were not identified and addressed in the

Napa Pipe Property General Plan Amendment #13-0091 9 County s certified Napa Pipe EIR, and whether an additional environmental document is required. Based on the analysis in the Initial Study and its consideration of the County s certified Napa Pipe Project EIR, the City has determined, pursuant to Section 15164 of the CEQA Guidelines, that none of the conditions described in CEQA Guidelines Section 15162 calling for preparation of a subsequent EIR are present, the City relied on the addendum to the certified Napa Pipe Project EIR to support its actions to Prezone the property. The City Council has also already balanced the benefits of the proposed Napa Pipe Project against the significant unavoidable adverse impacts resulting from implementation of the project, including prezoning the property to match the zoning already adopted by the County, and adopted a Statement of Overriding Considerations for the project. As a result, no further action is required under CEQA relating to this project or the General Plan Amendment for the Napa Pipe Property. VI. REQUIRED FINDINGS Prior to recommending to the City Council approval of the proposed General Plan Amendment, the Planning Commission is required to make the following finding: 1. That the proposed amendment is in the public interest, and that it is internally consistent with other goals, policies and programs of the General Plan. The City and the County have the shared goals for the Napa Pipe Project, including to adequately mitigate potential impacts, to address certain affordable housing obligations imposed upon the County and the City by the State, and to work together cooperatively to ultimately annex the property into the City of Napa. In July 2014, the City Council adopted a General Plan Amendment incorporating the Napa Pipe Property into the RUL (which became effective with the City voters approval of Measure A). In supporting the General Plan Amendment at the time, the City Council recognized that the amendment would provide certain substantial benefits to the community through a development agreement between Napa County and Developer, and ultimately the City of Napa and Developer when the property annexes into the City limits such as, but not limited to, expedited remediation of hazardous materials, expanded public access to the Napa River, and affordable housing construction. The Napa Pipe Property is also already located in one of 12 planning areas of the City (the River East Planning Area). Additionally, the proposed General Plan Amendment to now re-designate the property Mixed Use and Light Industrial is consistent with General Plan policy LU-2.2, which provides that the City shall cooperate with the County to ensure that land proposed for development within the RUL is annexed into the City limits, and land outside the RUL is conserved primarily for agriculture and other resource and open space uses. The Napa Pipe Property is already largely developed with a range of existing and former industrial uses and this a brownfield site is not appropriate for agricultural and open space uses, excepting that there are parts of the proposed development that will provide public access to the Napa River and connect the City of Napa and Napa Valley to the greater Bay Area via the Vine and Bay Trail networks. This is specifically promoted by another policy contained in the City s General Plan (Policy LU-

Napa Pipe Property General Plan Amendment #13-0091 10 10.1), which encourages the City to promote an urban form that integrates urban development with the city s natural forms, such as in the instance the planned Napa Pipe Property development and the Napa River. VII. STAFF RECOMMENDATION Based upon the analysis above, staff recommends that the Planning Commission forward a recommendation to the City Council to approve a General Plan Amendment for the 154-acre Napa Pipe Property generally located at 1025 Kaiser Road south of Kaiser Road and east of the Napa River (Assessor s Parcel Numbers 046-400-030 and 046-412-005). VIII. ALTERNATIVES TO RECOMMENDATION No alternative recommendations are provided in this section because the staff recommended option above achieves the goals of the City-County MOU executed in October 2013 and the City voters support to expand the RUL to include future annexation of the Napa Pipe Property into the City limits. IX. REQUIRED ACTIONS Forward an advisory recommendation to the City Council on the Napa Pipe Property to: Amend the General Plan to include: (1) change the land use designations for two parcels of real property in unincorporated Napa County located at 1025 Kaiser Road to Mixed Use for the parcel west of the railroad tracks (APN 046-400-030) and Light Industrial for parcel east of the railroad tracks (APN 046-412-005); (2) add to Table 1-5, the Nonresidential Intensity Matrix, MU-722 and LI-723 to reflect the changes in land use designation; and (3) amend the descriptions of the Mixed Use and Light Industrial Land Use Designations as provided above in this report shown in underline and strikeout. X. NOTICE Notice of the public hearing was provided by U.S. Postal Service at least 10 days in advance of the public hearing to all property owners within a 500-foot radius of the subject property. Notice of the public hearing was also published in the Napa Valley Register at least 10 days in advance of the hearing and provided to people previously requesting notice on this matter, at the same time notice was provided to the newspaper for publication. Legal notice included a general explanation of the matter to be considered, identification of the location of the property involved, a description of the date, time and place of the public hearing, the identity of the hearing body, and a statement consistent with the Code of Civil Procedure regarding the time limit to commence any legal challenge and matters that may be raised by such challenge. XI. DOCUMENTS ATTACHED 1. None