For City Council Meeting [November 15, 2022]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Paul Gonzales, Community Development Manager
Title
Request City Council Conduct a Public Hearing to consider Adoption of (1) Resolution No. 8003 approving General Plan Amendment No. 2020-0001, a request to change the general plan land use designation of approximately 8.46 gross acres of land from General Commercial (GC) with a Specific Plan Overlay to Business Park (BP) with a Specific Plan Overlay, (2) Resolution No. 8004 approving Specific Plan Amendment No. 2020-0001, a request to change the specific plan zoning designation of approximately 8.46 gross acres of land from Freeway Commercial (F-C) within the Gateway Specific Plan to Industrial Park (I-P) within the Gateway Specific Plan, (3) Resolution No. 8005 approving Variance No. 2020-0001, a request to increase the maximum allowable building height from 35 feet to 49 feet, (4) Resolution No. 8006 approving Conditional Development Permit No. 2020-0006, a request to allow the development and operation of a 492,410 square foot industrial commerce building on approximately 22.49 gross acres of land, (5) Resolution No. 8007 approving Precise Plan of Design No. 2020-0012, a request for site and architectural review of a 492,410 square foot industrial commerce building on approximately 22.49 gross acres of land, and (6) Resolution No. 8008 approving an Environmental Impact Report (Environmental Assessment Review No. 2020-0007) prepared for the project, in accordance with the California Environmental Quality Act (CEQA). The project site is located at the northwest corner of Valley Boulevard and Willow Avenue.
POWERPOINT
(ACTION)
Body
APPLICANT:
QR Birtcher Willow Ave Owner, LLC, 450 Newport Center Drive, Suite 220, Newport Beach, CA 92660.
LOCATION:
The project site consists of four (4) parcels of land (APNs: 0132-181-01, 0132-201-03, 0254-261-14, & 0254-261-17) located at the northwest corner of Valley Boulevard and Willow Avenue (Refer to the attached Location Map (Exhibit A)).
BACKGROUND:
Surrounding General Plan Land Use Designations
Surrounding Zoning Designations
Site Characteristics
The project site is comprised of four (4) parcels of land totaling approximately 22.49 gross acres (20.99 net acres) in size with approximate dimensions of 1,500 feet (north-south) by 600 feet (east-west). The project site is bound on the east by Willow Avenue and on the south by Valley Boulevard, an established truck route. The project sit is currently developed with several small structures and has been used as a storage yard for trucks, trailers, and similar.
Surrounding Area
To the north of the project site is an existing San Bernardino County Flood Control Channel and 0.63-acre stormwater basin, to the east across Willow Avenue is the existing Rialto Fire Station No. 205, and approximately 3.39 acres of vacant land. To the south, are existing multi-tenant industrial buildings including the Teamsters Local 63 union hall, and to the west are existing industrial developments.
ANALYSIS/DISCUSSION:
The applicant, QR Birtcher Willow Ave Owner, LLC, proposes to change the general plan land use designation of the southern parcel of the project site (APN: 0132-181-01) from General Commercial (GC) with a Specific Plan Overlay to Business Park (BP) with a Specific Plan Overlay, and change the specific plan zoning designation of this parcel from Freeway Commercial (F-C) within the Gateway Specific Plan to Industrial Park (I-P) within the Gateway Specific Plan, consolidate the four (4) parcels into one (1) parcel totaling approximately 20.99 net acres of land, increase the building height from 35 feet to 49 feet, and construct a 49-foot tall 492,410 square foot industrial commerce building on the project site. There is no proposed tenant for the proposed building at this time. The design of the building will accommodate various storage and distribution uses, though the building will not be used for cold storage uses.
General Plan Amendment No. 2020-0001 & Specific Plan Amendment No. 2020-0001
The three (3) northern parcels of the project site have a general plan land use designation of Business Park with a Specific Plan Overlay and the southern parcel of the project site has a general plan land use designation of General Commercial with a Specific Plan Overlay. To be consistent with the norther general plan designation and to accommodate the proposed project, the applicant is requesting a general plan amendment to change the general plan land use designation of the southern parcel of the project site to Business Park.
As shown on Figure 4.12 (Proposed Zoning) of the Gateway Specific Plan, the three (3) northern parcels of the project site have a specific plan zoning designation of Industrial Park (I-P) while the southern parcel of the project site has a specific plan zoning designation of Freeway Commercial (F-C). According to Section 4.9 (Proposed Zoning) of the Gateway Specific Plan, industrial warehouse buildings are permitted within the I-P zone but are not permitted within the F-C zone. To be consistent with the majority of the project site, the southern parcel of the project site is proposed as I-P per the specific plan.
The Business Park general plan land use designation and the I-P specific plan zoning designation are consistent with the surrounding land use designations, zoning designations, and developments. Adjacent parcels to the north, east, south, and west of the project site are designated Business Park and developed with industrial warehouse buildings with the project site being utilized for industrial storage uses prior to the adoption of the Gateway Specific Plan in 1990.
Lot Merger
The applicant filed Lot Line Adjustment No. 2021-0002 to merge the four (4) parcels of land that make up the project site into one (1) parcel totaling approximately 20.99 net acres of land. The new lot would meet minimum lot size requirements of Chapter 18.35 (I-P Industrial Park Zone) of the Rialto Municipal Code.
Site Design
The applicant proposes to construct a 492,410 square foot industrial warehouse building on the project site. The layout includes an enclosed truck court and passenger vehicle parking areas along the north, south, and west sides of the building. The truck court will accommodate up to 154 trucks and trailers, and 289 passenger vehicles.
Two (2) driveways are proposed on Valley Boulevard for access that include a 40 foot wide driveway at the west end of the project site for trucks and passenger vehicles and a 26 foot wide driveway at the east end of the project site for right-in/right out access for passenger vehicles only. Additionally, a 42 foot wide driveway connected to Willow Avenue will provide left-in/right-out access for trucks and passenger vehicles.
Additional proposed on-site improvements include paving, lighting, landscape planters throughout the site, concrete screen walls, and an underground infiltration basin.
Floor Plan
The proposed floor plan (Exhibit E) consists of 10,000 square feet of office space and 482,410 square feet of warehouse space with 5,000 square feet on the ground floor and an additional 5,000 square feet allocated on a second-floor for a mezzanine.
Architectural Design
The proposed buildings will feature vertical and horizontal wall plane articulation with recessed wall panels and panel height variations on all four (4) sides of all buildings. The height of the buildings will range from 42 feet to 49 feet (Exhibit F), from the finished floor level. The exterior of each building will be of concrete tilt-up wall construction painted with a palette of four (4) different colors - white, light gray, charcoal, and yellow accents. Additional architectural features include metal siding accents, metal brow accents, reveals, and glazing.
Variance No. 2020-0001 / Building Height
The maximum building height of the project, as measured from the finished floor, is 49 feet, while the I-P zone requires a maximum building height of 35 feet. The proposed building height is 14 feet taller than that allowed in the I-P zone. Modern day warehouse buildings utilizing current logistic technologies often need a minimum interior clearance of 35 feet. Additional building height is then necessary to facilitate proper roof drainage and to provide adequate screening of rooftop equipment. For these reasons, nearly all of the warehouse buildings constructed within the City of Rialto in the last 10 years have building heights well above 35 feet. Furthermore, warehouses within the same I-P zone have recently received approval to have building heights above 35 feet. Similarly, a development received approval to construct a warehouse building approximately 0.38 miles to the west of the project site with a height of 47 feet. Additionally, a Days Inn hotel approximately 350 west of the project site features a tower element with signage that reaches 58.8 feet in height. Therefore, the requested building height of 49 feet is similar to the heights of existing and future buildings in the area.
The purpose of a variance is to provide flexibility to prevent practical difficulties or unnecessary hardships that occur through the strict enforcement of development standards.
Planning staff concludes that the project meets all the findings required for the Variance request.
Parking
The development will have 289 auto-parking spaces, including six (6) ADA accessible parking spaces. This quantity exceeds the minimum parking requirement as shown in the parking calculation chart below and as required by Chapter 18.58 (Off-Street Parking) of the Rialto Municipal Code:
Landscaping
The landscape coverage for the project is 11.6 percent, which exceeds the minimum required amount of 10.0 percent. This includes twenty-five (25) foot landscape setbacks along both Valley Boulevard and Willow Avenue, as well as planters around the perimeter of the building and the project site. All the landscape planters will feature a variety of trees spaced every thirty (30) linear feet and an abundant number of shrubs and groundcover (Exhibit G).
Traffic
Urban Crossroads, Inc. prepared a Traffic Analysis (TA), dated December 20, 2021, to assess the project’s potential impacts to local streets and intersections (Exhibit H). The TA determined that the current use of the site as a truck/material storage yard generates approximately 230 daily vehicle trips (356 PCE daily vehicle trips), of which trucks make up 76 of the 230 daily vehicle trips. The TA estimates that the project will generate approximately 1,752 daily vehicle trips (2,940 PCE daily vehicle trips), a net increase of 1,522 daily vehicle trips. Trucks will constitute 700 of the 1,752 actual daily vehicle trips. According to Exhibit 4-1 of the TA, trucks will not utilize Valley Boulevard west of the project site or Willow Avenue north of the site, thereby avoiding Joe Baca Middle School to west and residential areas to the north.
The TA analyzed the following 7 intersections in the project vicinity:
Three (3) of the intersections are anticipated to be impacted when the existing and project generated traffic volumes are combined with cumulative growth and ambient growth without any mitigation. The specific intersections are (1) Riverside Avenue & Valley Boulevard, (2) Riverside Avenue & I-10 Westbound Ramps, and (3) Riverside Avenue & I-10 Eastbound Ramps. The TA recommends various improvements to mitigate potential traffic impacts to these intersections. The recommended improvements to mitigate the traffic impacts consist of restriping existing right-of-way, adding a northbound right turn lane at the intersection of Riverside Avenue & I-10 Eastbound Ramps, and modifying existing traffic signals.
The TA concluded that the payment of “fair share” fees for the recommended improvements constitutes adequate mitigation. The applicant will be responsible for a fair share payment in the amount of $26,258 to the City of Rialto. The fair share fees are calculated based upon the project’s anticipated portion of traffic generated at each of the affected intersections. Specifically, the applicant is responsible for 9.9% ($16,965) of the cost of improvements recommended for Riverside Avenue & I-10 Westbound Ramps and 4.3% ($9,293) of the cost of improvements recommended for Riverside Avenue & I-10 Eastbound Ramps.
The Transportation Commission reviewed and approved the TA on June 6, 2022. In its decision, the Transportation Commission agreed with the findings and recommended “fair-share” payments in the TA.
The applicant will construct half-width street improvements along the entire project frontages of Valley Boulevard and Willow Avenue and will also modify the northeast corner of the intersection of Valley Boulevard and Willow Avenue to accommodate truck turning movements. Additionally, the applicant will pay development impact fees related to traffic. All “fair-share” payments and development impact fee payments will be paid prior to issuance of a building permit, and all new street improvements along the project frontage will be completed prior to issuance of a Certificate of Occupancy.
Economic Development Committee
The Economic Development Committee (EDC) reviewed the project on October 23, 2019. At its meeting, the EDC expressed general support and directed the applicant to file the necessary applications. The minutes from the October 23, 2019, EDC meeting are attached as Exhibit I.
Land Use Compatibility
The project is consistent with the proposed Business Park general plan land use designation, the proposed I-P zoning designation, and the design criteria contained within Chapter 18.61 (Design Guidelines) of the Rialto Municipal Code. The surrounding area is predominantly designated for and developed with industrial uses, and as a result, there are no sensitive land uses adjacent to or across the street from the project site. The project will serve to improve an under-developed site with a new industrial building, landscaping, screen walls, and drainage improvements. Additionally, the project will eliminate unsightly views of truck/trailer storage and material storage currently on the site.
Fiscal Analysis
Prior to completion of the project, the applicant will pay plan check, permit, and development impact fees to the City. Additionally, the project will generate annual recurring revenues to the City General Fund in the form of property taxes, utility taxes, and business license taxes. Furthermore, the project will generate approximately 350 to 450 jobs, increasing employment opportunities for City of Rialto residents. Not only will the project provide additional employment opportunities for City of Rialto residents, but it will also result in result in employees spending their discretionary income as they frequent local restaurants, gas stations, and other local businesses.
ENVIRONMENTAL IMPACT:
Air Quality Emissions
According to Table 3-10 (Summary of Peak Operation Emissions) of the Air Quality Impact Analysis prepared by Urban Crossroads, Inc. for the project, the project will potentially generate up to 123.23 lbs./day of Nitrogen Oxide (NOx) emissions during operations. The threshold set by South Coast Air Quality Management District (SCAQMD) for operational NOx emissions is 55 lbs./day. The project NOx emissions will exceed the threshold established by SCAQMD.
Several mitigation measures within the Air Quality Impact Analysis are designed to reduce the operational NOx emissions, but these measures will not be sufficient to reduce the NOx emissions below the SCAQMD threshold, since neither the applicant nor the City have the regulatory authority to control tailpipe emissions. Therefore, the impact of the project’s NOx emissions is considered significant and unavoidable, resulting in the need to prepare an Environmental Impact Report (EIR) for the project.
Greenhouse Gas Emissions
As indicated by Table 3-7 (Project GHG Emissions) of the Greenhouse Gas Analysis prepared by Urban Crossroads, Inc. for the project, the project will potentially generate Greenhouse Gas (GHG) emissions up to approximately 14,903.75 MTCO2e/yr (Metric Tons of Carbon Dioxide Equivalent Per Year). The interim threshold set by SCAQMD for all new development projects is 3,000 MTCO2e/yr. The project GHG emissions will exceed the threshold established by SCAQMD.
More than 88% of the project’s GHG emissions will be generated by mobile sources (vehicle traffic). There are no feasible mitigation measures that can substantively or materially reduce the project’s mobile source GHG emissions below the SCAQMD established threshold under current industry conditions. As such, the impact of the project’s GHG emissions is considered significant and unavoidable, resulting in the need to prepare an EIR for the project.
Transportation
In September 2013, the California legislature adopted Senate Bill 743, requiring all lead agencies to adopt Vehicle Miles Traveled (VMT) guidelines and thresholds by July 1, 2020 as the new measure for identifying transportation/traffic impacts for land use projects. The new VMT guidelines are a replacement for automobile delay-based Level of Service (LOS) for projects subject to CEQA. Based on an evaluation of VMT, the proposed project identified a significant impact as shown below:
Due to the significant VMT impact, the following mitigation measures were identified to reduce VMT from the project:
• Provide “end-of-trip” facilities (may include showers, locker rooms, etc.) that promote biking to work.
• Provide an information packet to future building occupants that provides information regarding the benefits of trip reduction programs and how such programs could be administered.
• Create a transit and carpooling incentive program for future employees.
The efficacy of the mitigation measures to reduce the VMT impacts below thresholds cannot be assured, therefore the project’s impact on transportation is considered significant and unavoidable, resulting in the need to prepare an Environmental Impact Report (EIR) for the project.
California Environmental Quality Act
The applicant engaged T&B Planning, Inc. to prepare an EIR (Environmental Assessment Review No. 2020-0007) for the project in accordance with the requirements of the California Environmental Quality Act (CEQA). The City of Rialto subsequently engaged EcoTierra Consulting to conduct a peer review of the Environmental Impact Report and all the related environmental documents. A Notice of Preparation (NOP) was distributed to the State Clearinghouse, as well as agencies, organizations, and persons considered likely to be interested in the project and the potential impacts. The NOP comment period occurred from July 23, 2021 to August 23, 2021. Five (5) comment letters were received during the comment period. The commenters included Californian’s Allied for a Responsible Economy (C.A.R.E. CA), CREED LA, Colton Joint Unified School District, San Bernardino County Department of Public Works, and the South Coast Air Quality Management District (SCAQMD). Each of the comments received were subsequently addressed in the preparation of the Draft Environmental Impact Report (DEIR). The completed DEIR concluded that the project would create unavoidable significant impacts to air quality, greenhouse gas emissions, and transportation/traffic.
A Notice of Availability (NOA) and the DEIR was distributed and circulated for public review from March 22, 2022 to May 5, 2022. Two (2) comment letters were received during the comment period. The commenters included Colton Joint Unified School District and the San Bernardino County Department of Public Works. T&B Planning, Inc. prepared a responses to comments received. The responses to comments and the final Mitigation Monitoring & Reporting Program (MMRP) were input into the Final Environmental Impact Report (FEIR). Planning staff determined that the Environmental Impact Report prepared for the project appropriately satisfies the requirements of CEQA. The DEIR and FEIR are attached to the agenda report (Exhibits J & K). Adoption of the EIR will require the adoption of a Statement of Overriding Considerations that details and states that the benefits of the project will outweigh the impacts of the project.
Additionally, it is noted that on November 3, 2022, the Colton Joint Unified School District (CJUSD) Board of Education approved an agreement with the applicant, whereby the applicant will provide and agreed upon amount of funds to the CJUSD for the following:
• Enhanced landscaping along the perimeter of Joe Baca Middle School
• Upgraded Heating, Ventilation, and Air Conditioning (HVAC) filtration systems at Joe Baca Middle School
• Two (2) Crossing Guards in the vicinity of Joe Baca Middle School and Ruth Grimes Elementary School for a period of 20 years
As part of approving the agreement, the CJUSD withdrew its previous comment letter.
Project Alternatives Analyzed
CEQA Section 15126.6(a) requires that an EIR analyze a range of reasonable alternatives to the project that would feasibly attain most of the basic objectives of the project and avoid or substantially lessen any of the significant effects of the project. The EIR for the project analyzed the following alternatives:
Section S.5 (Alternatives to the Proposed Project) and Section 6.0 (Alternatives) of the EIR conclude the following about each project alternative:
• The “No Development Alternative” would result in no physical environmental impacts to the project site other than those that have historically occurred on the property; however, this alternative fails to meet any of the objectives of the project.
• The “Gateway Specific Plan Alternative” would not reduce, but instead would likely increase impacts to air quality, energy, greenhouse gas emissions, and utilities & service systems, and the alternative would fail to meet many of the objectives of the project.
• The “Reduced Building Area Alternative” would incrementally reduce, but not avoid, significant impacts to air quality and greenhouse gas emissions. This alternative would also reduce impacts to energy and utilities and service systems. All other impacts from the alternative would be similar to the impacts from the project. Furthermore, this alternative would be less effective than the project at meeting the objectives due to the reduction of an in-demand employment generating land use.
• The “Flex Building Alternative” would increase impacts to utilities and service systems. All other impacts from this alternative would be similar to the impacts from the project. However, this alternative would fail to meet many of the objectives of the project because it does not include a warehouse use that would contribute to the movement of goods in the region.
GENERAL PLAN CONSISTENCY:
The applicant requests the approval of a General Plan Amendment to change the land use designation of the southern parcel of the project site to Business Park with a Specific Plan Overlay for the project to achieve consistency with the General Plan. As mentioned previously, the proposed Business Park general plan land use designation for the southern parcel of the project site is consistent with the existing Business Park general plan land use designation of the three (3) northern parcels of the project site as well as properties to the north, east, south, and west of the project site. Furthermore, the project is consistent with the following goals of the Land Use Element and Economic Development Element of the Rialto General Plan:
Goal 2-16: Improve the architectural and design quality of development in Rialto.
Goal 2-22: Promote commercial and/or industrial development that is well designed, people-oriented, environmentally sustainable, sensitive to the needs of the visitor or resident, and functionally efficient for its purpose.
Goal 3-1: Strengthen and diversify the economic base and employment opportunities, and maintain a positive business climate.
PLANNING COMMISSION ACTION:
On July 27, 2022, the Planning Commission considered the project during a regularly scheduled public meeting. During the meeting, the Planning Division presented the project and recommended that the Planning Commission recommend approval of the project to the City Council. The Planning Division’s recommendation was based upon, but not limited to, the following conclusions:
• The project is consistent with the land use designations and existing industrial developments that surround the project site.
• The design of the project meets or exceeds the requirements of Chapter 18.112 (Indoor Storage Facilities) of the Rialto Municipal Code.
• The project’s EIR demonstrates that the benefits of the project will outweigh the impacts of the project.
After closing the public hearing, the Planning Commission voted 6-0 (1 vacancy) to adopt Planning Commission Resolution No. 2022-41 recommending that the City Council deny the project. In its decision, the Planning Commission cited concerns related to increased truck traffic, air pollution impacts, and an over-proliferation of industrial warehouse buildings. A copy of the Planning Commission Resolution No. 2022-41 is attached as Exhibit L.
LEGAL REVIEW:
The City Attorney has reviewed and approved the staff report and the attached resolutions.
FINANCIAL IMPACT:
Operating Budget Impact
Development of the project will generate annual recurring revenues to the General Fund in the form of increased property tax, business license taxes, and utility taxes.
Capital Improvement Budget Impact
No City funds will be used to construct the project. The applicant will bear the full capital cost of construction of the project and the required infrastructure improvements. Additionally, prior to the issuance of a building permit, the applicant will pay plan check, permit, development impact fees, and traffic “fair-share” fees to the City.
Business License
Prior to any construction, the applicant will submit a contractors list to the Business License Division, and each contractor listed will obtain a business license. Subsequently, the owner and tenant(s) will need to obtain separate business licenses for the leasing and use of the building.
RECOMMENDATION:
Staff recommends that the City Council conduct a Public Hearing to consider the project, and either:
- Adopt the following Resolutions approving the project:
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- Adopt the attached Resolution (Exhibit M) certifying the Final Environmental Impact Report (Environmental Assessment Review No. 2020-0007) prepared for the project, adopting a Statement of Overriding Considerations, and authorizing staff to file a Notice of Determination with the Clerk of the Board of San Bernardino County; and
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- Adopt the attached Resolution (Exhibit N) to approve General Plan Amendment No. 2020-0001 to change the general plan land use designation of approximately 8.46 gross acres of land (APN: 0132-181-01), detailed in the legal description attached as Exhibit O, from General Commercial (GC) with a Specific Plan Overlay to Business Park (BP) with a Specific Plan Overlay, subject to the findings and conditions therein; and
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- Adopt the attached Resolution (Exhibit P) approving Specific Plan Amendment No. 2020-0001 to change the specific plan zoning designation of approximately 8.46 gross acres of land (APN: 0132-181-01), detailed in the legal description attached as Exhibit O, from Freeway Commercial (F-C) within the Gateway Specific Plan to Industrial Park (I-P) within the Gateway Specific Plan, subject to the findings and conditions therein; and
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- Adopt the attached Resolution (Exhibit Q) approving Variance No. 2020-0001 to increase the maximum building height from 35 feet to 49 feet as it relates to a proposal to develop a 492,410 square foot warehouse building, subject to the findings and conditions therein; and
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- Adopt the attached Resolution (Exhibit R) to approve Conditional Development Permit No. 2020-0006 and allow the development and operation of a 492,410 square foot industrial warehouse building on approximately 22.49 gross acres (20.99 net acres) of land (APN’s: 0132-181-01, 0132-201-03, 0254-261-14, & 0254-261-17), subject to the findings and conditions therein; and
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- Adopt the attached Resolution (Exhibit S) to approve Precise Plan of Design No. 2020-0012 and allow the development of a 492,410 square foot industrial warehouse building on approximately 22.49 gross acres (20.99 net acres) of land (APN’s: 0132-181-01, 0132-201-03, 0254-261-14, & 0254-261-17), subject to the findings and conditions therein.
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- ; or
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- Adopt the attached Resolution (Exhibit T) denying General Plan Amendment No. 2020-0001, Specific Plan Amendment No. 2020-0001, Variance No. 2020-0001, Conditional Development Permit No. 2020-0006, and Precise Plan of Design No. 2020-0012, subject to the findings therein.