REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Actions on a Rezone from PD - Planned Development to HI - Heavy Industrial and Variance for the Property Located at 2201 Lafayette Street to Allow Reestablishment of Industrial Uses for a Product Engineering Development and Manufacturing Business
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
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 onsite building for a heavy industrial use of product engineering development and manufacturing for the business operating as Applied Innovation Group, Inc.
The project site has been vacant since April 2013 and was previously occupied by a business, “Union Stone” (a construction materials retail showroom and warehouse). In 2005, the City Council approved a request (File No. PLN2005-05047) to rezone the parcel (APN: 224-04-082) from Heavy Industrial (MH) to Planned Development (PD) and a Tentative Parcel Map to subdivide the property into 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). Refer to the approved site plan from 2005 (Attachment 5).
The rezoning was approved with specific conditions of approval 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 10 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 MH 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 current application includes only Parcel Two (2201 Lafayette Street) and is a similar request that was for 700 Mathew Street. 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 to Heavy Industrial (HI). This project also includes a Variance (Section 18.124 Zoning Code 2024) from the required parking.
Rezoning applications require approval by the Council after the Planning Commission has reviewed and provided a recommendation (Section 18.142 Zoning Code 2024).
DISCUSSION
The proposed rezone to HI from PD would allow for the reestablishment of a heavy industrial use, which was the original use at this site. The applicant proposes to use the property for a product engineering development and manufacturing business, which is a permitted use in the HI zone. The project site consists of a developed parcel (Parcels 224-03-087) and existing structures on the site will meet all the development standards and regulations listed in Chapter 18.50 of the Classic Code (former zoning code prior to the 2024 update), Heavy Industrial Zoning District. The project is subject to the parking regulations of the updated Zoning Code (2024) and is in deficit of the required 18 parking spaces, however this is an existing non-conforming condition. The Planning Commission report (Attachment 1) includes the detailed explanation of the applicable Zoning Code sections.
On September 11, 2024, the Planning Commission reviewed the application for the Rezone and Variance. The Planning Commission staff report (Attachment #1) provides an analysis of the project’s conformance to the General Plan and the substandard lot size and dimensions which were created by the previous rezoning and tentative map approved in 2005. At the hearing, the Commissioners asked clarifying questions about the proposed business, Product Engineering Development and Manufacturing.
The discussion focused on the parking Variance. 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 subject site has a unique condition in that the Rezoning and Tentative Map approval in 2005 created a substandard quantity of parking on Parcel Two, allowing them to use 10 parking spaces on Parcel Three through a Parking Agreement. A 1978 grant deed included an eight-foot offer of dedication along Lafayette Street, in order to improve frontage in the future. 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 making it infeasible to accommodate the ingress/egress and dimensional standards. Therefore, the existing accessible parking space would need to be relocated to Parcel Three. The rezoning also triggers the requirement for onsite trash collection. With these requirements, the existing 10 parking spaces on Parcel Three available for use by Parcel Two would be reduced to seven parking spaces. The applicant has signed a new agreement with the property owner on 700 Mathew Street for access for trash collection and seven parking spaces.
The proposed site plan which relocates all the parking spaces to the back of the building and allows for landscaping in the front setback is recommended by staff; however the Planning Commission was concerned about the number of parking spaces on the site, specifically the location of the accessible Americans with Disabilities (ADA)space, and inquired about whether additional parking could be provided. At the end of the discussion, the Planning Commission recommended approval of the rezoning and took action on the Variance request for reduced parking with the condition that the applicant explore the option of adding an accessible stall and an additional parking space to the front, and explore alternative means of parking, such as transit passes, shared parking agreements, or mechanical lifts, to the satisfaction of the Director of Community Development. The Planning Commission recognized that rearranging the parking would necessitate the project not providing the required landscaping in the front setback, as the circulation for the parking space and existing curb cut would need to be retained, and approved the Variance for all of these development standards. Since the Planning Commission meeting, the applicant has worked with staff to move the accessible stall from Parcel Three to the front of the building, and this will make room for one additional parking space on Parcel Three, bringing the total parking spaces to nine spaces. Note that the City’s new Zoning Code section 18.144.040 C requires that any companion permit, such as a variance which would typically be decided on by the Planning Commission, be instead decided on by the City Council, when that permit is companion to a legislative action such as a rezoning. As such the City Council shall decide on the Variance request and make the necessary findings to support the City’s Council decision. Attachment #3 is a resolution that supports the Planning Commission’s recommendation on the Variance with findings to support the nonconformance to parking and landscape standards in the Zoning Code.
As noted above, the staff recommendation differs slightly from the Planning Commission recommendation. The staff recommendation is to locate all of the parking spaces, including the accessible ADA space, behind the building in order for the frontage of the building along Lafayette Street to be improved with a sidewalk, 15 foot to 17 foot wide landscape strip in the front setback, and bicycle parking area. Attachment #4 is a resolution that supports the staff recommendation on the Variance with findings to support the nonconformance to the parking standards in the Zoning Code. Note that that the staff recommendation includes the adherence to front setback landscape standards in the Zoning Code.
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 expense typically covered by processing fees paid by the applicant.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
On October 30, 2024, a notice of public hearing was published in The Weekly, a newspaper of general circulation, and on October 31, 2024, a notice of public hearing on this item mailed to property owners within 500 feet of the project site.
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
At the time of this staff report, the Planning staff has not received public comments in support or opposition to the proposed project.
ALTERNATIVES
1. Adopt a resolution approving the Rezone from Planned Development (PD) to Heavy Industrial (HI) for the property located at 2201 Lafayette Street, subject to conditions of approval.
2. Deny the Rezone from Planned Development (PD) to Heavy Industrial (HI) for the property located at 2201 Lafayette Street, subject to conditions of approval.
3. Adopt a resolution approving the Variance for a reduction in parking spaces and nonconformance to landscape requirements, including the required findings (Planning Commission recommendation).
4. Adopt a resolution approving the Variance for a reduction in parking spaces, including the required findings.
RECOMMENDATION
Recommendation
Alternatives 1 & 4
1. Determine that the Project is categorically exempt under Section 15301 (Class 1 Existing Facilities) of the CEQA Guidelines;
2. Adopt a resolution approving the Rezone from Planned Development (PD) to Heavy Industrial (HI) for the property located at 2201 Lafayette Street, subject to conditions of approval; and
3. Adopt a resolution approving the Variance for a reduction in parking spaces, including the required findings.
Staff
Reviewed by: Reena Brilliot, Acting Community Development Director
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Planning Commission Staff Report of September 11, 2024
2. Resolution approving the Rezone
3. Resolution approving the Variance for a reduction in parking spaces and nonconformance to landscape requirements, including the required findings (Planning Commission recommendation).
4. Resolution approving the Variance for a reduction in parking spaces, including the required findings (staff recommendation)
5. Applicant Statement of Justification and Operational Plan
6. Conditions of Approval
7. 2005 Approved Site Plan
8. Development Plans