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 that the City Council Adopt Resolution No. 7988 Authorizing Amendments to the Foothill Boulevard Specific Plan, the Central Area Specific Plan, and the Gateway Specific Plan to Implement the Rezone Program Established in the Housing Plan of the City of Rialto 2021-2029 (Sixth Cycle) Housing Element Update.
Body
BACKGROUND
On March 8, 2022, the City of Rialto City Council adopted the Sixth Cycle Housing Element Update as required by the State of California for all jurisdictions. The Element includes Housing Program 2B, rezone to provide adequate sites to accommodate the 2021-2029 Regional Housing Needs Assessment (RHNA). The rezone program will offer property owners an additional land use option. Existing underlying zoning and related property owner rights will remain.
The rezone program includes seven opportunity areas. They are:
• Opportunity Area 1: Foothill Boulevard Specific Plan
• Opportunity Area 2: North Riverside Avenue
• Opportunity Area 3: Gateway Specific Plan
• Opportunity Area 4: Central Area Specific Plan
• Opportunity Area 5: Baseline Parcels
• Opportunity Area 6: Baseline Shopping Center
To be in compliance with State Housing Element Law, the City will need to implement the rezone program. Furthermore, in order for the City to receive Permanent Local Housing Allocation funding, the rezone program will need to be complete by February 28, 2023. In the event the rezone program is not completed by this date, the City may lose its Year 1 (2019) allocation of $597,786.
ANALYSIS/DISCUSSION
The rezone program includes a citywide overlay and the following Specific Plan Amendments.
• Foothill Boulevard Specific Plan Amendment to increase density from 30 to 35 dwelling units per acre and remove requirements that presently limit density based on project size,
• Central Area Specific Plan Amendment to create a residential overlay allowing residential as a permitted use up to 48.4 dwelling units per acre, and
• Gateway Specific Plan Amendment to create a residential overlay allowing residential as a permitted use up to 50 dwelling units per acre
City-sponsored specific plan amendments require initiation by the Planning Commission and authorization by the City Council. On October 26, 2022, the Planning Commission initiated the three specific plan amendments.
The rezone program adding the residential overlay will not impose any obligation on existing property owners to convert or change the use of their commercial or other non-residential uses on their property. Property owners retain full discretion to utilize the residential overlay, if they choose, to pursue development of residential units. There is no mechanism proposed by the rezone program to mandate or impose an obligation on existing property owners to redevelop their properties for residential uses.
ENVIRONMENTAL IMPACT
Pursuant to Section 15164 of the California Environmental Quality Act (CEQA), an Addendum to the Sixth Cycle Housing Element Mitigated Negative Declaration will be prepared for the project.
GENERAL PLAN CONSISTENCY
Initiation of the three Specific Plan Amendments complies with Housing Program 2B, which is to rezone to provide adequate sites to accommodate the 2021-2029 RHNA.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report
FINANCIAL IMPACT
Operating Budget Impact
The City received an SB 2 Planning Grant award from the California Department of Housing and Community Development (HCD) in the amount of $310,000. A standard agreement with HCD was signed on September 24, 2020. A portion of the grant funds was designated for implementation of the Sixth Cycle Housing Element rezone program.
The Fiscal Year 2022-2023 General Fund budget appropriated $152,517 for professional services for the Planning Division. Should additional funding be required for incidental expenses, sufficient funds are budgeted and available in the General Fund, Account No. 010-500-4260-2011.
Capital Improvement Budget Impact
No impact.
RECOMMENDATION
Staff recommends that the City Council adopt the resolution authorizing amendments to the Foothill Boulevard Specific Plan, the Central Area Specific Plan, and the Gateway Specific Plan to implement the rezone program established in the Housing Plan of the City of Rialto 2021-2029 (Sixth Cycle) Housing Element Update.