CITY OF ELK GROVE CITY COUNCIL STAFF REPORT AGENDA ITEM NO. 10.1 AGENDA TITLE: Consider adoption of a resolution finding no further review is required under the California Environmental Quality Act (CEQA) for the Bow Street Apartments Project (EG-16-006) and approving a Density Bonus for the Project pursuant to Elk Grove Municipal Code Title 23 (Zoning Code) MEETING DATE: June 22, 2016 PREPARED BY: DEPARTMENT HEAD: Nathan Anderson, Associate Planner Darren Wilson, PE, Development Services Director PROJECT INFORMATION: Location: Planner: Property Owner: Applicant: 8627 Bow Street Assessor s Parcel Number (APN) 115-0162-033 Nathan Anderson, Associate Planner Kaye K. Wood Pacific West Communities RECOMMENDED ACTION: Staff recommends that the City Council adopt a resolution: 1. Finding the Density Bonus for the Bow Street Apartments Project (EG-16-006) exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15183; and 2. Approving a Density Bonus for the Bow Street Apartments Project (EG-16-006) 1
Elk Grove City Council June 22, 2016 Page 2 of 6 PROJECT DESCRIPTION: The Bow Street Apartments Project (Project) consists of a Density Bonus to allow concessions/incentives for parking and setback reduction along Auberry Drive, and setback reduction for the Bow Street Apartments Project. The Minor Design Review for the Bow Street Apartments Project was previously approved by the Zoning Administrator with a condition of approval stating that the Project is contingent upon such Density Bonus. ZONING ADMINISTRATOR REVIEW: On June 6, 2016, the Zoning Administrator held a public hearing for the Bow Street Apartments Project (Project). There were no comments received during the public hearing. The Zoning Administrator approved the Project, subject to conditions of approval. PROJECT BACKGROUND: The approved Bow Street Apartment Project is a Minor Design Review to construct a 98-unit apartment complex on 4.66 acres in the RD-25 zoning district, resulting in a density of 21.03 dwelling units per acre (Project). The Project consists of four, three-story multi-family residential apartment buildings and one community building, as well as a swimming pool, play equipment, landscape area, and associated site improvements. All of the units will be at or below 60 percent of the area median income, which qualifies them as affordable units eligible for a tax-credit-funded project. The site is identified by the 2014 Housing Element Update as one of the sites selected to meet the City s Regional Housing Needs Assessment (RHNA) numbers. Pursuant to the requirements of the Housing Element, this site is required to develop at a minimum density of 21 dwelling units per acre. The Bow Street Apartments developer has a pending application for an Affordable Housing Fund loan through the City. The Affordable Housing Fund generates funding through an impact fee on new development, and the funds are then used to support the creation or retention of housing opportunities for low-income households. Historically, a majority of the funds have been used as gap financing for multi-family rental housing that is also financed with low-income housing tax credits. 2
Elk Grove City Council June 22, 2016 Page 3 of 6 DENSITY BONUS: In order to develop this Project at the density required by the Housing Element, the Project requires approval of a Density Bonus. The purpose of a Density Bonus is to provide incentives for the production of housing for very low-income, lower-income, moderate-income, special needs, and senior households in the City. According to Elk Grove Municipal Code (EGMC) Title 23 (Zoning Code), it is the intent of the City to facilitate the development of affordable housing by positively impacting the economic feasibility of providing affordable housing and implementing the goals, objectives, and policies of the City s Housing Element. Eligibility for Density Bonus According to EGMC Chapter 23.50, the City shall grant one density bonus, with concessions or incentives, as specified in EGMC Section 23.50.040 (Number and types of density bonuses and incentives and concessions allowed), when the Applicant agrees to construct a residential development that shall contain at least one of the following: A. Ten percent of the total units of a housing development are for lowerincome households; B. Five percent of the total units of a housing development are for very low-income households; C. A senior citizen housing development as defined in Sections 51.3 and 51.12 of the California Civil Code, or age-restricted mobile home park; or D. Ten percent of the total dwelling units are in a common interest development as defined in Section 4100 of the California Civil Code for persons and families of moderate income; provided that all units in the development are offered to the public for purchase. Units that meet at least one of the above standards are referred to as target units. All of the units proposed as part of the Project would be considered lower-income, and, therefore, would qualify as target units. Concessions/Incentives As part of the Density Bonus process, an Applicant may also request specific incentives or concessions. These are defined as a reduction in site development standards or a modification of the requirements of the Zoning Code, including but not limited to a reduction in setback and square footage requirements, and in the ratio of vehicle parking spaces that would otherwise be required. 3
Elk Grove City Council June 22, 2016 Page 4 of 6 The Zoning Code states that three incentives or concessions for projects that include at least 30 percent of the total units for lower-income households are allowed. As stated previously, all of the units proposed as part of this development would be considered lower-income, and, therefore, up to three incentives would be allowed. Setbacks The Applicant is requesting incentives to approve a five-foot reduction in the 25-foot setback requirement along the extension of Auberry Drive, allowing a 20-foot setback and associated landscape buffer. The Applicant is also requesting a 37-foot deviation from the required 100-foot threestory setback from single-family residential for Building #4, which is required within the RD-25 zoning district by the Zoning Code. Both of these incentives/concessions related to setbacks can be permitted through the Density Bonus process, pursuant to Section 23.50.040 of the Zoning Code. Due to the constraints of the site, staff supports these additional incentives. Parking According to Section 23.50.030(D) of the EGMC, Projects eligible for a Density Bonus (that meet the requirements of 23.50.020) are qualified for a reduction in required on-site parking, consistent with the following: 1) Zero (studio) to one bedroom: one on-site parking space per unit; 2) Two to three bedrooms: two on-site parking spaces per unit; 3) Four or more bedrooms: two and one-half parking spaces per unit. The Project proposes the following unit counts: 24 one-bedroom units, 49 two-bedroom units, and 25 three-bedroom units. Therefore, based on the alternative parking ratios allowed through the Density Bonus concessions, this would require 172 on-site parking spaces. This is consistent with the parking for the approved Project. Approving Authority According to Section 23.50.070 of the EGMC, a Density Bonus must be approved by the City Council. Therefore, although the Zoning Administrator was the designated approving authority for the Bow Street Apartments Minor Design Review Project, a condition of approval was included stating that approval of the Project is contingent upon approval of the Density Bonus at a subsequent meeting of the City Council. The Project cannot be developed as proposed unless and until the Density Bonus is approved. If 4
Elk Grove City Council June 22, 2016 Page 5 of 6 the Density Bonus is not approved and the Applicant elects to move forward with the Project, the Project would have to be modified and return to the Zoning Administrator for amendment. Process for Approval or Denial Section 23.50.070 of the EGMC states that the Density Bonus and incentive/concession request shall be considered in conjunction with any necessary development entitlements for the Project. As stated previously, the Zoning Administrator is the designated approving authority for Minor Design Review projects. The requirement for the Density Bonus was discussed in the Project staff report, detailed on the Project plans, and included as a condition of approval. Therefore, the request was considered in conjunction with the required development entitlements. The Zoning Code also requires that in approving the Density Bonus and any related incentives or concessions, the City and Applicant shall enter into a Density Bonus Agreement. This has been required as a condition of approval. According to EGMC Section 23.50.070(C), the City shall grant the incentive(s) and concession(s) requested by the Applicant unless the City makes a written finding, based upon substantial evidence, of any of the following: 1) The concession or incentive is not required in order to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). 2) The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households. 3) The concession or incentive would be contrary to State or Federal law. 5
Elk Grove City Council June 22, 2016 Page 6 of 6 None of these deterrent findings would be applicable to the proposed request; therefore, staff recommends that the requested incentives/concessions be approved, based on the requirements of the Zoning Code. ENVIRONMENTAL ANALYSIS CEQA Guidelines Section 15183 (Public Resources Code 21083.3), provides that projects which are consistent with a Community Plan, General Plan, or Zoning for which an environmental impact report (EIR) has been certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site. An EIR was prepared and certified by the City Council as part of the City s General Plan Housing Element Update in 2014 (SCH 2013082012), which included the Project site in the analysis. Additionally, an EIR was certified by the City Council for the adoption of the City of Elk Grove General Plan in 2003 (SCH 2002062082). No potential new impacts related to the Project have been identified that would necessitate further environmental review beyond the impacts and issues already disclosed and analyzed in the General Plan EIR and the 2014 Housing Element Update EIR. No other special circumstances exist that would create a reasonable possibility that the Project will have a significant adverse effect on the environment. Therefore, the Project, and the approval of the required Density Bonus to approve concessions required to develop the Project, qualifies for the exemption under CEQA Guidelines Section 15183 and no further environmental review is required. FISCAL IMPACT The developer has requested a $5 million loan from the Affordable Housing Fund, which will be considered as a separate item before the Council. However, the approval of a Minor Design Review and Density Bonus is not contingent upon receipt of this loan. ATTACHMENTS: 1. Resolution Recommending Approval of Density Bonus Exhibit A Project Description Exhibit B Project Approvals (Approved by ZA on June 6, 2016) Exhibit C Conditions of Approval 6
ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE FINDING NO FURTHER REVIEW IS REQUIRED UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND APPROVING A DENSITY BONUS FOR THE BOW STREET APARTMENTS PROJECT (EG-16-006) APN: 115-0162-033 WHEREAS, the Planning Division of the City of Elk Grove received an application on January 29, 2016 from Pacific West Communities (the Applicant) requesting a Minor Design Review to construct a 98-unit apartment complex within the RD-25 zoning district, (Project); and WHEREAS, the proposed Project is located on real property in the incorporated portions of the City of Elk Grove more particularly described as APN: 115-0162-033; and WHEREAS, the Project qualifies as a project under the California Environmental Quality Act (CEQA), Public Resource Code 21000 et seq.; and WHEREAS, Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning) of Title 14 of the California Code of Regulations (State CEQA Guidelines) provides an exemption from CEQA for projects that are consistent with the applicable General Plan and Zoning for which an Environmental Impact Report (EIR) was certified; and WHEREAS, pursuant to Title 23 (Zoning Code) of the Elk Grove Municipal Code (EGMC), the Zoning Administrator is the designated approving authority for Minor Design Reviews; and WHEREAS, the Zoning Administrator held a duly noticed public hearing on June 6, 2016, as required by law to consider all of the information presented by staff, information presented by the Applicant, and public testimony presented in writing, and approved the Minor Design Review for the Project; and WHEREAS, the Project included a condition of approval requiring approval of a Density Bonus in order to construct the Project as approved by the Zoning Administrator; and WHEREAS, the City Council is the designated approving authority for a Density Bonus. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk Grove finds that no further environmental review is required under the California Environmental Quality Act for the Project pursuant to State CEQA Guidelines Section 15183 based upon the following finding: Finding: No further environmental review is required under the California Environmental Quality Act pursuant to State CEQA Guidelines Section 15183 (Consistency with a General Plan, Community Plan, or Zoning for Which an EIR was Prepared). 7
Evidence: CEQA Guidelines Section 15183 (Public Resources Code 21083.3), provides that projects which are consistent with a Community Plan, General Plan, or Zoning for which an environmental impact report (EIR) has been certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site. An EIR was prepared and certified by the City Council as part of the City s General Plan Housing Element Update in 2014 (SCH 2013082012), which included the Project site in the analysis. Additionally, an EIR was certified by the City Council for the adoption of the City of Elk Grove General Plan in 2003 (SCH 2002062082). No potential new impacts related to the Project have been identified that would necessitate further environmental review beyond the impacts and issues already disclosed and analyzed in the General Plan EIR and the 2014 Housing Element Update EIR. No other special circumstances exist that would create a reasonable possibility that the Project will have a significant adverse effect on the environment. Therefore, the Project, and the approval of the required Density Bonus to approve concessions required to develop the Project, qualifies for the exemption under CEQA Guidelines Section 15183 and no further environmental review is required. AND, BE IT FURTHER RESOLVED, that the City Council of the City of Elk Grove hereby approves the Density Bonus for the Project, as described in Exhibit A for the Project previously-approved by the Zoning Administrator and illustrated in Exhibit B, subject to the conditions of approval in Exhibit C (all incorporated herein by this reference), based upon the following findings: Density Bonus Finding #1: The Project is eligible for a Density Bonus, per the requirements of Chapter 23.50 of the EGMC Evidence #1: According to Chapter 23.50 of the EGMC, the City shall grant a Density Bonus, with concessions or incentives, when the Applicant agrees to construct a residential development that contains at least 10 percent of the total units of a housing development for lower-income households (defined as target units). The Project, which has a pending application for an Affordable Housing Fund loan through the City, is proposed to provide 100 percent of the dwellings as target units. Therefore, the Project is eligible for a Density Bonus. Finding #2: The Project does not meet any of the requirements specified in Section 23.50.070 of the EGMC which would preclude approval of a Density Bonus. Evidence #2: The concession or incentive is required in order to provide for affordable housing costs, as the units could not be constructed at the density required by the Housing Element without the proposed reductions in parking and setbacks. The concessions or incentives would not have a specific adverse impact upon public health and safety or the physical environment. The proposed Density Bonus would reduce the required on-site parking for the site to standards allowed by the Zoning Code, allow a five-foot reduction to a required 25-foot setback and 8
associated landscape buffer along the extension of Auberry Drive, and allow a 37- foot reduction from a required 100-foot three-story setback from single-family residential for one of the apartment buildings. 172 parking spaces would be provided on-site, which would result in 1.75 spaces per unit. In addition, the Project would extend Auberry Drive, which would provide additional street parking which could be utilized by the apartment complex. This parking deviation is consistent with the parking reduction allowed by the EGMC. The reduction in setbacks would not be detrimental to surrounding properties. Engineering has reviewed the reduced setback along Auberry Drive and has determined that there would be no impacts to visibility or safety. Although the proposed three-story building would be within the 100-foot setback for three-story structures, deviations are allowed based on site configuration. The proposed apartment building would be located approximately 100 feet from one home located to the north; however a six-foot tall decorative masonry fence would be constructed on the northern property line to shield the properties to the north which would reduce the views of the complex. The concession or incentive would not be contrary to State or Federal law. PASSED AND ADOPTED by the City Council of the City of Elk Grove this 22 nd day of June 2016. GARY DAVIS, MAYOR of the CITY OF ELK GROVE ATTEST: APPROVED AS TO FORM: JASON LINDGREN, CITY CLERK JONATHAN P. HOBBS, CITY ATTORNEY 9
Exhibit A BOW STREET APARTMENTS DENSITY BONUS (EG-16-006) Project Description PROJECT DESCRIPTION The Project consists of a Density Bonus to allow concessions/incentives for parking, setback reduction along Auberry Drive, and setbacks for the Bow Street Apartments Project. The Minor Design Review for the Bow Street Apartments Project was previously approved by the Zoning Administrator with a condition of approval stating that the Project is contingent upon such Density Bonus. 10
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44 Exhibit C BOW STREET APARTMENTS DENSITY BONUS (EG-16-006) Conditions of Approval Conditions of Approval Timing/ Implem entation Enforcement/ Mo nitoring Verification (date and Signature) ON GOING 1. 2. 3. 4. Development and operation of the proposed Project shall be consistent with the Project Description as provided in Exhibit A and Project Plans for the previously approved Minor Design Review (Exhibit B), incorporated herein by this reference. Deviations from the approved plans shall be reviewed by the City for substantial compliance and may require amendment by the appropriate hearing body. This action does not relieve the Applicant of the obligation to comply with all ordinances, statutes, regulations, and procedures. The Applicant, or Successors in Interest (hereby referred to as the Applicant), shall hold harmless the City, its Council Members, its Planning Commission, officers, agents, employees, and representatives from liability for any award, damages, costs and fees incurred by the City and/or awarded to any plaintiff in an action challenging the validity of this permit or any environmental or other documentation related to approval of this permit. Applicant further agrees to provide a defense for the City in any such action. The Project shall comply with all Conditions of Approval for the approved Bow Street Apartments Project (Exhibit B). On Going On Going On Going On Going PRIOR TO OR IN CONJUNCTION WITH IMPROVEMENT AND/OR GRADING PLAN SUBMITTAL OR APPROVAL 5. The applicant shall enter into an agreement with the City to ensure the continued affordability of all target units, to the satisfaction of the City Manager and City Attorney. For all target units, the agreement shall specify the household income classification, number, location, size, and construction scheduling and shall require target units in a project and phases of a project to be constructed concurrently with the construction of non-target units. The agreement shall include such other provisions as necessary to establish compliance with the requirements of this chapter. Improvement Plan or Building Permit(s) Whichever Occurs First Planning Planning Planning Planning Planning Housing
Exhibit C BOW STREET APARTMENTS DENSITY BONUS (EG-16-006) Conditions of Approval Conditions of Approval Timing/ Implem entation Enforcement/ Mo nitoring Verification (date and Signature) 6. The Applicant shall submit financial or other reports to establish compliance with this chapter. The City may retain a consultant to review any financial report (pro forma). The cost of the consultant shall be borne by the applicant, except that if the applicant is a nonprofit organization, the cost of the consultant may be paid by the City upon prior approval of the City Council. Improvement Plan or Building Permit(s) Whichever Occurs First Planning Housing 45