REPORT TO PLANNING COMMISSION
SUBJECT
Title
Public Hearing. Action on a Rezone (PLN23-00208) from PD - Planned Development to HI - Heavy Industrial and Variance for Parking for the Property Located at 2201 Lafayette Street
Report
REPORT IN BRIEF
File Number: PLN23-00208
Applicant: John Ha, Innovative Design Architecture
Owner: Cindy Cheng, Vista Grande Investment, LLC
General Plan: Heavy Industrial
Zoning: Planned Development (PD)
APN: 224-03-087
Site Area: 64,898 square feet
Existing Site Conditions: The property is developed with an industrial building that is currently vacant and surface parking.
Surrounding Land Uses:
North: Heavy Industrial Uses
South: Digital Realty Data Center
East: Heavy Industrial Uses
West: Light Industrial Uses
Issues: Consistency with the City’s General Plan and conformance with the City’s Zoning Ordinance
Staff Recommendation: Determine that the project is consistent with a Class 1 Categorical Exemption per Section 15301, Existing Facilities of the CEQA Guidelines: adopt a resolution approving a Variance for parking, subject to findings and conditions of approval; and adopt a resolution recommending the City Council approve the Rezone from Planned Development (PD) to Heavy Industrial (HI) for the property located at 2201 Lafayette Street, subject to findings and conditions of approval.
BACKGROUND
On August 22, 2023, John Ha with Innovative Design Architecture (“Applicant”), on behalf of Cindy Cheng with Vista Grande Investment, LLC (“Owner”) filed an application to change the use of the subject site located at 2201 Lafayette Street. The proposal includes minor interior changes and site improvements to use the existing building on the site for a heavy industrial use of product engineering development and manufacturing for the business operating as Applied Innovation Group, Inc.
The project site consists of one building, approximately 24,000 square feet, which was previously occupied by Union Stone, a construction materials retail showroom/warehouse. The adjoining property to the east at 700 Mathew Street consists of two buildings that were previously occupied by a business, “Off the Wall Soccer”, and a warehouse use. In 2005, the City Council approved a request (File No. PLN2005-05047) to rezone the parcel (APN: 224-04-082) from Heavy Industrial (HI) to Planned Development (PD) to allow for the sale of the building located at 2201 Lafayette Street. Along with the Rezoning, the City Council also approved a Tentative Parcel Map (File No. PLN2005-04910) to subdivide the property into two parcels with one common area parcel. This created three parcels- Parcel One (700 Mathew Street, APN: 224-03-086), Parcel Two (2201 Lafayette Street, APN: 224-03-087), and Parcel Three (Parking lot along Mathew Street, APN: 224-03-000). The rezoning was approved with specific conditions of approval restricting the redevelopment of Parcel Two unless it was combined with one or both parcels fronting Lafayette Street on either side of Parcel Two, and restricting the use of Parcel Two to construction materials retail showroom/warehouse only. A Parking Agreement was also executed between Parcel One and Parcel Two, where ten parking spaces on Parcel Three would be available for use by Parcel Two.
On July 18, 2023, the City Council approved a request (PLN23-00054) to rezone the property at 700 Mathew Street (Parcels One and Three) from PD to Heavy Industrial for the use of existing buildings on site for metal fabrication/spinning for the business operating as Quality Metal Spinning. The Planning Commission had also approved a variance on June 14, 2023, for 26 parking spaces where 32 parking spaces were required, which became effective upon approval of the rezoning. The variance also approved a reduction in the required front setback and landscaping for Parcel One as the existing building is built to the property line, and a reduction in the required landscaping for Parcel Three to accommodate the new sidewalk.
The current application includes only Parcel Two (former construction materials retail showroom/warehouse). Given the specific uses allowed in the existing PD zoning, the proposal to use this site for heavy industrial use (Applied Innovation Group, Inc) would require a Rezone from Planned Development (PD) to Heavy Industrial (HI). The building has been vacant since April 2013. The proposal would include providing seven parking spaces on Parcel Three to be available for use by Parcel Two per the existing Parking Agreement. This project also includes a Variance from the minimum required parking as discussed further below.
DISCUSSION
The proposal includes physical improvements that would accommodate a change of use for the building. The proposal includes minor interior remodeling, restriping the parking to include an accessible space and loading zone, adding a sidewalk and a landscape strip with a new 24-inch box tree, adding bike racks and other site improvements.
The footprint of the existing building sits on the lot lines on the north, south, and east, and would not change. In 1978, a grant deed was executed that dedicated approximately eight feet of the front of the property to accommodate future street improvements. The proposed rezoning triggers a requirement to add a five-foot sidewalk and a four-foot landscape strip along the project frontage, matching the completed frontage improvements of the adjacent property. As a result, the existing parking fronting Lafayette Street on Parcel Two became infeasible to accommodate the ingress/egress and dimensional standards and the existing accessible parking space would need to be relocated to Parcel Three. With these requirements, the existing 10 parking spaces on Parcel Three available for use by Parcel Two would be reduced to seven parking spaces. Overall, the proposal will be short of the required 18 parking spaces by 11 spaces and would require a variance to the zoning code’s parking requirement. The applicant has signed a new agreement with the property owner on 700 Mathew Street for access for trash collection and seven parking spaces.
In December 2023, the City Council adopted an updated Zoning Code and certain sections including parking requirements that became effective on February 8, 2024. However, the Zoning districts other than single-family did not become effective until the effective date of the updated Zoning map, August 15, 2024. Under the updated Zoning Code, pipeline applications are processed under the requirements in effect on the date the application is determined to be complete by the Project Clearance Committee (PCC). Here, the PCC found the application to be complete on July 30, 2024. Therefore, although the property is proposed to be rezoned to the new Zoning designation of Heavy Industrial (HI), the zoning regulations of the old Heavy Industrial (MH) district of the Classic Code will apply to this application, while the parking requirements from the current Zoning Code (2024) would apply.
General Plan Conformance
The subject site’s land use designation is Heavy Industrial, which allows primarily manufacturing, refining, warehouse and distribution, and similar activities. Therefore, the proposed Rezoning from Planned Development (PD) to Heavy Industrial (HI) is consistent with the General Plan. Further, the proposed project is consistent with the following General Plan Policies:
General Land Use Policies
• 5.3.1-P8: Work with property owners to improve or redevelop underutilized and vacant properties.
• 5.3.1-P9: Require that new development provide adequate public services and facilities, infrastructure, and amenities to serve the new employment or residential growth.
The project would revamp the vacant and underutilized property by locating a new Engineering development and manufacturing business. The project site is in an urban environment surrounded by primarily industrial uses and is served by existing public services, facilities, infrastructure, and amenities. The proposal will make necessary infrastructure upgrades, such as a new sidewalk and landscape strip to serve the new use.
Office and Industrial Land Use Policies
• 5.3.5‐P1 Work with existing Santa Clara businesses to retain and expand employment opportunities and strengthen the existing tax base.
• 5.3.5‐P11 Construct sidewalks in industrial areas, with priority along streets served by existing or planned transit services.
• 5.3.5‐P16 Protect the industrial land use designations from incompatible uses in order to maintain the City’s strong fiscal health and quality services that are supported by new businesses and technologies and retention of well‐established existing businesses.
The proposed business would have up to 15 employees, providing employment opportunities in Santa Clara. The project has a condition of approval to construct a five-foot sidewalk and a four-foot planter strip along the project frontage on Lafayette Street. The proposed heavy industrial use will be consistent with the industrial land use designation for the parcel.
Zoning Conformance
The project site is zoned PD with specific conditions of approval restricting the use of Parcel Two to construction materials retail showroom/warehouse only. The proposed rezone to HI from PD would allow for heavy industrial use, which was the original use at this site and the site's General Plan land use designation. The project site meets all the regulations of the Heavy Industrial Zoning District in the Classic Code, except parking. The MH Zoning district required a front setback of 15 feet and a minimum of 10 feet of the required front yard to be maintained as an open landscape area. The existing building is constructed with a varying front setback between 17 feet and 15 feet and provides the required landscaping, meeting the zoning regulations.
The project site will have a pedestrian and bike connection via Lafayette Street, and the vehicular access will be from the parcel at 700 Mathew Street. Per Section 18.38 Table 3-3 of the Zoning Code (2024), the proposed use will require 18 parking spaces at a ratio of one space per 1,200 square feet for storage/warehouse and a ratio of one space per:1,000 square feet for the Heavy Industrial use of total floor area. The project provides seven parking spaces, including one accessible parking on Parcel Three, and would therefore require a Variance from the minimum parking requirement.
Variance Request
To grant a Variance, the Planning Commission must make the findings listed in the Zoning Code (2024) Section 18.124.050. The Zoning Code limits granting of Variances to situations where the peculiar physical characteristics of a site would make it difficult to develop consistent with standard regulations. A Variance may be granted to enable the development of a disadvantaged property at the equivalent level of use enjoyed by nearby properties in the same zone. The subject site has an unusual condition in that the Rezoning and Tentative Map approval in 2005 created a substandard condition for parking on Parcel Two. Additionally, the existing buildings were constructed in the 1970’s with reduced parking and the 1978 grant deed included an eight-foot dedication along Lafayette Street, which rendered the parking in the front setback area unacceptable. The proposed use would repurpose the existing industrial site that has been vacant since April 2013. The project would help extend the complete streets configuration along the project frontage and eliminate the substandard front landscaping conditions to be in conformance with the Zoning Code requirements. The variance is necessary for the preservation and enjoyment of the substantial property rights of the owner.
Should the Planning Commission approve the Variance, it would only become effective if the City Council approves the proposed rezoning. If the City Council declines to approve the rezoning, the Variance resolution will be null and void. If the City Council approves the rezoning, then the Variance resolution shall become effective on the effective date of the rezoning.
Conclusion
The project site has a General Plan land use designation of Heavy Industrial and is in a heavy industrial neighborhood originally zoned MH and developed with industrial buildings and uses. Therefore, the proposed project to rezone the property to HI meets the purpose and intent of the Zoning Code and is in conformance with the General Plan.
ENVIRONMENTAL REVIEW
The proposed project is categorically exempt from the California Environmental Quality Act (“CEQA”) per CEQA Guidelines section 15301 (Class 1 - “Existing Facilities”), which applies to minor alterations of existing public or private structures involving negligible or no expansion of the existing or former use. Here, the proposal involves interior remodeling and minor exterior modifications to the site without expanding the existing buildings.
FISCAL IMPACT
There is no fiscal impact to the City for processing the requested application other than administrative time and expenses typically covered by processing fees paid by the applicant.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
On August 28, 2024, a notice of public hearing was published in The Weekly, a newspaper of general circulation, and on August 29, 2024, a notice of public hearing on this item mailed to property owners within 500 feet of the project site. At the time of this staff report, Planning staff has not received public comments in support or opposition to the proposed project.
RECOMMENDATION
Recommendation
1. Determine the project is consistent with a Class I Categorical Exemption per Section 15301, Existing Facilities of the CEQA Guidelines;
2. Adopt a resolution approving the Variance for parking, including the required findings; and
3. Adopt a resolution recommending City Council approve the Rezone from Planned Development (PD) to Heavy Industrial (HI) for the property located at 2201 Lafayette Street, subject to findings and conditions of approval.
Staff
Prepared by: Nimisha Agrawal, Senior Planner
Reviewed by: Alexander Abbe, Assistant City Attorney
Approved by: Lesley Xavier, Planning Manager
ATTACHMENTS
1. Resolution recommending approval for Rezone
2. Resolution approving the Variance
3. Conditions of Approval
4. Vicinity Map
5. Development Plans
6. Applicant Business Description and Operational Plan