For City Council Meeting [June 9, 2020]
TO: Honorable City Council
APPROVAL: Rod Foster, City Manager
FROM: Matt Schneider, Community Development Director
Title
Request City Council to Set a Public Hearing for June 23, 2020, to consider General Plan Amendment No. 2019-0003, which is a request to change the General Plan land use designation of a 4.65-acre parcel of land from Residential 21 to Residential 30, (2) Zone Change No. 2019-0002, which is a request to change the zoning designation of a 4.65-acre parcel of land from Multi-Family Residential (R-3) to Multi-Family Residential (R-4), and (3) a Negative Declaration (Environmental Assessment Review No. 2019-0027) prepared for the project, in accordance with the California Environmental Quality Act (CEQA).
Body
BACKGROUND
Applicant
BM Investments, LLC, P.O. Box 207, Claremont, CA 91711
Location
The project site consists of one (1) parcel of land (APN: 0131-161-27) located at 600-614 S. Riverside Avenue (Refer to the attached Location Map (Exhibit A)).
Site Characteristics
The project site consists of one (1) 4.65-acre parcel of land owned by BM Investments, LLC (BM Investments). The project site is located on the west side of Riverside Avenue approximately 500 feet south of Merrill Avenue. Construction of the final phase of a 104-unit apartment complex is nearing completion on the project site.
Surrounding Area
To the north of the project site is a 15,048 square foot Walgreens pharmacy, and to the east, across Riverside Avenue, are the Five Points Plaza and Plaza Rialto commercial centers. To the south is a thirty-eight (38) unit apartment complex, and to the west is a seventy (70) unit detached condominium complex.
Surrounding General Plan Land Use Designations
|
Location |
General Plan Designation |
|
Site |
Residential 21 |
|
North |
General Commercial |
|
East |
General Commercial |
|
South |
Residential 21 |
|
West |
Residential 21 |
Surrounding Zoning Designations
|
Location |
Zoning |
|
Site |
Multi-Family Residential (R-3) |
|
North |
Central Commercial (C-2) |
|
East |
Central Commercial (C-2) |
|
South |
Multi-Family Residential (R-3) |
|
West |
Planned Residential Development-Attached (PRD-A) |
Previous Entitlements
On April 9, 2008, the Planning Commission approved Conditional Development Permit No. 577 allowing the development of a 104-unit market-rate apartment complex on the project site. Construction of the project never commenced, Conditional Development Permit No. 577 expired on April 9, 2009, and the ownership of the property changed hands several times until BM Investments acquired it in January 2014.
In 2008 the project site consisted of 4.78 acres of developable land. However, in 2010, the adoption of the General Plan Update resulted in a requirement for ten (10) feet of additional street dedication along Riverside Avenue. The additional dedication reduced the developable land area from 4.78 acres to 4.65 acres. This resulted in lowering the allowable unit count on the site from 104-units to 101-units.
In 2014, BM Investments submitted new entitlement applications to develop an apartment complex with 104 units. To achieve the 104-units from the original approval, BM Investments relied upon California Density Bonus Law, which, as a matter of right, allows a developer to increase the number of dwelling units normally permitted for a project up to 35% through the reservation of affordable units. Ultimately, BM Investments designated five percent (5%) of the dwelling units as very low-income affordable units, which is the minimum percentage eligible for a density bonus under California Density Bonus Law. On June 25, 2014, the Planning Commission approved Conditional Development Permit No. 577R allowing the development of a 104-unit apartment complex, including 6 affordable units, on the now 4.65-acre project site.
ANALYSIS/DISCUSSION
General Plan Amendment No. 2019-0003 & Zone Change No. 2019-0002
In June 2017, BM Investments began construction on the apartment complex. Construction of the final phase of the project nears completion. Prior to final sign-off on the project, the Community Development Department requested verification of the affordable units in the form of a covenant. By this point, BM Investments determined that the incorporation of 6 affordable units for the purpose of gaining 3 market rate units did not make sense financially. Essentially, the project includes fewer market rate units than had it been built without the affordable units included - 98 market rate units with 6 affordable units compared to 101 market rate units without any affordable units. The 6 very low-income units would be rented to households earning less than 50% of the area median income, at a rent that represents approximately 30% of area median income adjusted by family size. The rent includes the base monthly rental plus a reasonable utility allowance. For a one-bedroom very low-income unit, the affordable rent is approximately $700 per month, far less than the current market value of $1,800. Furthermore, the term of the rental restrictions would be 55 years.
Alternatively, BM Investments proposes to change the land use and zoning designations of the site to bring the development into conformity without the incorporation of affordable units. Specifically, BM Investments proposes to change the land use designation from Residential 21 to Residential 30 and to change the zoning designation from Multi-Family Residential (R-3) to Multi-Family Residential (R-4). The Residential 30 land use designation and the R-4 zoning designation will eliminate the need for a Conditional Development Permit and the need for affordable units, as the requested designations will permit up to 139 dwelling units on the project site by right. However, BM Investments does not propose any expansion of the apartment complex with this request, and only seeks relief from the need to incorporate affordable units into the project.
Consistency
The Residential 30 land use designation and the R-4 zone are consistent with the surrounding area. For example, immediately adjacent to the south of the project site is a thirty-eight (38) unit apartment complex with a greater density that that of the project. Additionally, there are several other multi-story apartments, townhomes, and condominiums in the vicinity with similar or even greater densities in some cases. That said, the project site will continue to contain a 104-unit apartment complex that is similar in character to other multi-family developments in the nearby area, and no new development or expansion is proposed as apart of the request.
Regional Housing Needs Assessment (RHNA)
California State Housing Law requires local jurisdictions to periodically update the Housing Element within their General Plan. As a part of this process, the State requires that each Housing Element incorporate the Regional Housing Needs Assessment (RHNA) allocation plan to document the projected and existing housing needs for each jurisdiction. The City of Rialto is currently in the process of updating its Housing Element. The draft Housing Element includes the subject apartment complex site within its Units Constructed Inventory list, with all 104 units planned for “Above Moderate” income levels. The “Above Moderate” income level is not considered “affordable”, therefore the removal of the 6 affordable units from the project will not conflict with the City’s Housing Element.
Economic Development Committee
The Economic Development Committee (EDC) reviewed the project on May 15, 2019. At its meeting, the EDC expressed support for the project, and asked the applicant to work with staff and file the necessary entitlement applications.
Planning Commission
On March 11, 2020, the Planning Commission held a public hearing and considered oral and written testimony for General Plan Amendment No. 2019-0003, Zone Change No. 2019-0002, and the associated Negative Declaration (Environmental Assessment Review No. 2019-0027). After consideration, the Planning Commission voted 7-0 to recommend approval of the project to the City Council. The staff report from the March 11, 2020 meeting and the adopted Planning Commission Resolutions are attached (Exhibits B - E).
ENVIRONMENTAL IMPACT
California Environmental Quality Act
The Planning Division prepared an Initial Study (Environmental Assessment Review No. 2019-0027) for the project to assess the potential environmental impacts of the proposed project, in accordance with the requirements of the California Environmental Quality Act (CEQA). The Initial Study is attached to the agenda report (Exhibit F). Based on the findings within the Initial Study, staff determined that the project will not have an adverse impact on the environment and a Negative Declaration was prepared. The City published a Notice of Intent to adopt the Negative Declaration for the project in the San Bernardino Sun newspaper and mailed it to all property owners within 300 feet of the project site. A twenty (20) day public comment period took place from January 31, 2020 to February 19, 2020. The City received no public comment letters during the public comment period.
Native American Tribal Consultation (Assembly Bill 52 and Senate Bill 18)
In accordance with California Assembly Bill 52 and California Senate Bill 18, the Planning Division mailed notices to nine (9) Native American tribes informing them of the project and allowing them to request consultation on the project. The tribes were given ninety (90) days, from June 11, 2019 to September 9, 2019 to request consultation on the proposed project. Several tribes responded to the notification, however, none of the tribes requested formal consultation during the period.
GENERAL PLAN CONSISTENCY
The applicant requests the approval of a General Plan amendment to change the land use designation of the project site to Residential 30. The change in land use designation will ensure that the project site and its 104-unit apartment complex remain consistent with the General Plan without the incorporation of previously proposed affordable units. Furthermore, the project is consistent with the following City of Rialto General Plan policy:
Guiding Principle: Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney has reviewed and approved the staff report and the attached Notice of Public Hearing (Exhibit G).
FINANCIAL IMPACT
Operating Budget Impact
The request to change the land use designation and the zoning designation of the project site will not create any direct financial cost to the City. Instead, the applicant submitted filing fees to the Planning Division for the processing of the request.
Capital Improvement Budget Impact
The project does not include any development, therefore there are no financial costs associated with the project. No City funds will be used to complete the project.
Business License
The applicant currently maintains an active business license for the apartment complex.
RECOMMENDATION
Staff recommends that the City Council Set a Public Hearing for June 23, 2020, to consider:
- Adoption of the Negative Declaration (Environmental Assessment Review No. 2019-0027) prepared for the proposed project; and
-
- General Plan Amendment No. 2019-0003 to change the land use designation of approximately 4.65 acres of land, as described in the legal description attached as Exhibit H, from Residential 21 to Residential 30; and
-
- Zone Change No. 2019-0002 to change the zoning designation of approximately 4.65 acres of land, as described in the legal description attached as Exhibit H, from Multi-Family Residential (R-3) to Multi-Family Residential (R-4).