SAN JOSE CAPITAL OF SILICON VALLEY

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1 CITY OF Sr zsk SAN JOSE CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL COUNCIL AGENDA: 06/14/16 ITEM: 10.1(a) Memorandum FROM: Planning Commission SUBJECT: SEE BELOW DATE: May 23, 2016 SUBJECT: GPT DIRECTOR INITIATED GENERAL PLAN TEXT AMENDMENT TO INCREASE THE FLOOR AREA RATIO (FAR) FROM UP TO 2.0 FAR TO UP TO 3.5 FAR, AND INCREASE THE REFERENCE RANGE FOR THE NUMBER OF STORIES FROM ONE TO FOUR STORIES TO ONE TO FIVE STORIES, FOR THE NEIGHBORHOOD/COMMUNITY COMMERCIAL LAND USE DESIGNATION. RECOMMENDATION The Planning Commission voted (Commissioners Yob and Pham absent) to recommend that the City Council approve the General Plan Text Amendment to increase the Floor Area Ratio (FAR) from up to 2.0 FAR to up to 3.5 FAR, and increase the reference range for the number of stories from one to four stories to one to five stories for the Neighborhood/ Community Commercial land use designation. OUTCOME Should the City Council approve the General Plan Text Amendment, the Neighborhood/ Community Commercial land use designation will be amended to increase the FAR from up to 2.0 FAR to up to 3.5 FAR, and increase the reference range for the number of stories from one to four stories to one to five stories. - BACKGROUND On May 4, 2016, the Planning Commission held a public hearing to consider the proposed General Plan Text Amendment. The Director of Planning, Building and Code Enforcement recommended approval of the General Plan Text. The item was on the consent calendar and was approved by the Planning Commission with no discussion.

2 HONORABLE MAYOR AND CITY COUNCIL May 23, 2016 Subject: File No. GPT Page 2 ANALYSIS For complete analysis, please see the Planning Commission Staff Report (attached). EVALUATION AND FOLLOW-UP If the General Plan Text Amendment is approved, the Neighborhood/Community Commercial land use designation of the Envision San Jose 2040 General Plan will be modified to include text as detailed in the Planning Commission Staff Report. PUBLIC OUTREACH Staff has followed Council Policy 6-30: Public Outreach Policy. A notice of the public hearing was published in the San Jose Post Record and on the City's website. The staff report is also posted on the City's website and staff has been available to respond to questions from the public. COORDINATION This project was coordinated with the City Attorney's Office. CEOA Pursuant to Section of the CEQA Guidelines, the City of San Jose has determined that the proposed General Plan Text Amendment is within the scope of the approved Envision San Jose 2040 General Plan, and the Final Program EIR for the Envision San Jose 2040 General Plan and Supplemental EIR to the Envision San Jose 2040 General Plan EIR, for which findings were adopted by City Council Resolution Nos and respectively, that adequately describe the activity for the purposes of CEQA. /s/ HARRY FREITAS, SECRETARY, Planning Commission For questions please contact Steve McHarris, Planning Official, at Attachment: Planning Commission Staff Report

3 PC AGENDA: ITEM: 7.a. CAPITAL. OP SILICON VALLEY PLANNING COMMISSION STAFF REPORT File No. Applicant: Location Existing Zoning Council District Historic Resource Annexation Date: CEQA: GPT Director Initiated Citywide N/A Citywide N/A N/A Envision San Jose 2040 General Plan Final Program Environmental Impact Report (Resolution No ) and Supplemental Environmental Impact Report to the Envision San Jose General Plan Final Proogram Environmental Impact Report (Resolution No ) APPLICATION SUMMARY: A Planning Director Initiated General Plan Text Amendment to increase the Floor Area Ratio (FAR) from up to 2.0 FAR to up to 3.5 FAR, and increase the reference range for number of stories from 1 to 4 stories to 1 to 5 stories for the Neighborhood/Community Commercial land use designation. RECOMMENDATION: Planning staff recommends approval of the General Plan Text Amendment as it is consistent with the major strategies, goals, and policies of the Envision San Jose 2040 General Plan. PKOJj'.C I DKS( Ull'l ION The proposed text amendment to increase the FAR would modify the text of the Neighborhood/Community Commercial land use designation as follows in strikeout/underline format: Neighborhood/Community Commercial Density: FAR Up to 2t0 T5 (1 to 4 stories) (1 to 5 stories) This designation supports a very broad range of commercial activity, including commercial uses that serve the communities in neighboring areas, such as neighborhood serving retail and services and commercial/professional office development. Neighborhood / Community Commercial uses typically have a strong connection to and provide services and amenities for the nearby community and should be designed to promote that connection with an appropriate urban form that supports walking, transit use and public interaction. General office uses, hospitals and private community gathering facilities are also allowed in this designation.

4 Text Reference: Envision San Jose 2040 General Plan, Chapter 5 "Interconnected City", Page 9, Land Use Designations, Neighborhood/Community Commercial. Site Location: File No. GPT Page 2 of 4 Text Amendment applicable to those properties designated with the Neighborhood/Community Commercial land use designation. Envision San Jose 2040 General Plan Conformance The purpose of the proposed increase in floor area ratio is to provide more flexibility in site layout and building design within the Neighborhood/Community Commercial (NCC) General Plan land use designation. Such flexibility would support commercial development of projects on sites designated NCC that are constrained by the current 2.0 FAR limit. Recent projects within the NCC designation proposing commercial development marginally higher than a 2.0 FAR have had to drop their plans or apply for a General Plan Amendment, resulting in inactivity or underutilization of development sites. Examples include a four-story hotel off South DeAnza Boulevard (2.31 FAR) and a residential care facility on South Bascom Avenue (2.6 FAR). A moderate-level FAR would better meet the commercial development demand, and the strategies, goals and policies of the General Plan to enhance employment uses. The General Plan has two basic commercial/retail land use designations of Neighborhood/ Community Commercial (Up to 2.0 FAR) and Regional Commercial (Up to 12.0 FAR). The Regional Commercial land use designation is different from NCC in that it is intended primarily for large shopping malls, and large or specialty commercial centers that draw customers from the greater regional area, and would not typically be an appropriate designation on sites designated NCC. Adoption of the Envision San Jose 2040 General Plan has provided guidance for more robust commercial development. Neighborhood/Community Commercial is a key land use designation placed primarily along the cities arterial roadways and serving residential neighborhoods with goods and services. One intent of the NCC land use designation is to locate more services in close proximity to neighborhoods. The proposed FAR increase is based on recent development proposals and market demand in these areas. Most NCC designated sites are located in Urban Village Growth Areas, where higher density growth is focused and commercial uses are needed to serve planned population growth. To ensure compatibility with existing neighborhood uses, allowable density for the NCC land use designation is further defined within the applicable Zoning Ordinance designations through development standards (e.g., maximum height, minimum setbacks), and may also be addressed within Urban Village Plans or other policy documents. Modifying the NCC FAR from up to 2.0 to up to 3.5 as proposed is a moderate increase that will maintain the scale of development consistent with typical neighborhood commercial uses, while allowing more flexibility for employment space. Increasing the FAR for the Neighborhood Community Commercial land use designation is consistent with the following General Plan major strategies, goals, and policies: 1. Innovation/Regional Employment Center Major Strategy: The Innovation/Regional Employment Center Major Strategy emphasizes economic development within the City to support San Jose's growth as center of innovation and regional employment. The General Plan recognizes that all existing employment lands add value to the City.

5 File No. GPT Page 3 of 4 Analysis: The proposed General Plan Text Amendment would support the development of job generating uses by allowing more flexibility in site layout, building design, and massing on sites designated Neighborhood Community Commercial. 2. Fiscal Sustainabilitv Goal FS-4: Maintain, enhance, and develop employment lands. Neighborhood Serving Commercial Policy LU-5.1: In order to create complete communities, promote new commercial uses and revitalize existing commercial areas in locations that provide safe and convenient multi-modal access to a full range of goods and services. Neighborhood Serving Commercial Policy LU-5.3: Encourage new and intensification of existing commercial development, including stand-alone, vertical mixed-use, or integrated horizontal mixed-use projects, consistent with the Land Use / Transportation Diagram. Neighborhood Serving Commercial Policy LU-5.6: Encourage and facilitate the upgrading, beautifying, and revitalization of existing strip commercial areas and shopping centers. Minimize the visual impact of large parking lots by locating them away from public streets. Analysis: The General Plan policies listed above focus on the promotion and enhancement of employment/commercial uses. The proposed General Plan Text Amendment would address an identified limitation of the NCC land use designation, specifically the current maximum FAR, which has prohibited some commercial projects from moving forward. Increasing the FAR for the NCC land use designation would support the development of commercial uses by allowing moderately more intense development on sites with this designation. C M M OMNI \ EN\ IKOi\Mi:\ I VL QUALITY ACT (CEQA) The proposed General Plan Text Amendment does not propose any construction, demolition, or other activity that has the potential to negatively impact the environment. Although the Text Amendment would allow for an increase in the FAR on a particular site, the overall number of new jobs and new residential units constructed would not be increased beyond that which was analyzed in the Final Program EIR for the Envision San Jose 2040 General Plan, without additional environmental review. Pursuant to Section of the CEQA Guidelines, the City of San Jose has determined that this activity is within the scope of the approved Envision San Jose 2040 General Plan, and the Final Program EIR for the Envision San Jose 2040 General Plan and Supplemental EIR to the Envision San Jose 2040 General Plan EIR, for which findings were adopted by City Council Resolution Nos and respectively, that adequately describe the activity for the purposes of CEQA. PI lll.k III: MUM. NOI IIK AI ION Q Criterion 1: Requires Council action on the use of public funds equal to $1 million or greater. (Required: Website Posting) Criterion 2: Adoption of a new or revised policy that may have implications for public health, safety, quality of life, or financial/economic vitality of the City. (Required: and Website Posting) d Criterion 3: Consideration of proposed changes to service delivery, programs, staffing that may have impacts to community services and have been identified by staff, Council or a Community group that requires special outreach. (Required: , Website Posting, Community Meetings, Notice in appropriate newspapers)

6 File No. GPT Page 4 of 4 Although this item does not meet any of the criteria above, staff followed Council Policy 6-30: Public Outreach Policy. A notice of the public hearing was published in the San Jose Post Recoid and on the City's website. The staff report is also posted on the City's Website and staff has been available to respond to questions from the public. Project Managerj fared Hart Approved by: J it,planning Official for Harry Freitas, Planning Director Di '"' : MMk Owner:. City of San Jose 200 East Santa Clara Street San Josd, CA 95113