September 2, 2020 FROM: DAN ZACK, Assistant Director Planning and Development Department THROUGH: ISRAEL TREJO, Supervising Planner Development Services Division BY: KELSEY GEORGE, Planner Development Services Division SUBJECT ..Title Consideration of Text Amendment Application No. P20-02213 and related Environmental Finding for Environmental Assessment No. P20-02213, to add section 15-1614 to Chapter 15 of the Fresno Municipal Code creating the Focused Infill (FI) Overlay District. 1. RECOMMEND APPROVAL (to the City Council), of a finding set forth in Environmental Assessment No. P20-02213, that Text Amendment Application No. P20-02213 is exempt from CEQA pursuant to the common sense exemption that it can be seen with certainty that there is no possibility that the proposed text amendment may have a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3) 2. RECOMMEND APPROVAL (to the City Council) of Text Amendment Application No. P20-02213, to add section 15-1614 to Chapter 25 of the Fresno Municipal Code creating the Focused Infill (FI) Overlay District. ..Body EXECUTIVE SUMMARY Text Amendment Application No. P20-02213 was initiated by the Planning and Development Director through the Director Initiation Letter dated July 3, 2020 (Exhibit A).The purpose of the proposed Text Amendment is to facilitate more intensive development of parcels within Mixed-Use and certain Commercial zone districts at strategic points along transportation corridors in order to support transit use, housing production, and economic revitalization. Under the provisions of the proposed Text Amendment, eligible parcels for the FI Overlay district include the NMX (Neighborhood Mixed Use), CMX (Commercial Mixed Use), RMX (Regional Mixed Use), CMS (Commercial Main Street, and CR (Commercial Regional) zone districts. BACKGROUND / ANALYSIS Text Amendment Application No. P20-02213 was initiated by the Planning and Development Director. The purpose of the proposed Text Amendment is to facilitate more intensive residential development of parcels within Mixed-Use and certain Commercial zone districts at strategic points along transportation corridors in order to support transit use, housing production, and economic revitalization. Under the provisions of the proposed Text Amendment, eligible parcels for the FI (Focused Infill) Overlay district include the NMX (Neighborhood Mixed Use), CMX (Commercial Mixed Use), RMX (Regional Mixed Use), CMS (Commercial Main Street, and CR (Commercial Regional) zone districts. The proposed Text Amendment is in response to the Housing Crisis Act of 2019 (Senate Bill 330), which was approved by the State of California Governor on October 9, 2019. The Housing Crisis Act prohibits a city or county from enacting a development policy that would reduce the density as defined by the General Plan or any applicable specific plans without increasing an equal amount (or more) of lost density elsewhere in the City. It should be noted however that the overlay may also be initiated or requested for purposes of facilitating development and encouraging investment at strategic points along transportation corridors without a need to balance a reduction in residential capacity elsewhere. At this time, the proposed FI Overlay District will not be applied to any parcels. When the City receives applications that propose reductions specifically prohibited by the Housing Crisis Act of 2019 without a concurrent increase in density elsewhere, the Planning and Development Department may apply the overlay district to a strategic eligible parcel to maintain no net loss of housing stock. Increases in residential density to offset reductions in density for a specific project, are permitted by the Housing Crisis Act of 2019. As such, the proposed Text Amendment does not relate to any physical project and will not result in any physical change to the environment. The approval of this text amendment does not approve any development or specific project. Rather, it creates a process for increasing density for eligible parcels, and creates a clear mechanism for projects within the City to comply with applicable state law. Summary of Text Amendment Text Amendment Application No. P20-02213 proposes to amend the Citywide Development Code by adding Section 15-1614 to create a FI (Focused Infill) Overlay District. As proposed, the proposed Text Amendment includes: 1. Increase in maximum residential density. The maximum permitted residential densities for eligible base districts shall be as follows: * NMX, CMS, CR : 48 dwelling units/acre * CMX: 90 dwelling units/acre * RMX: 135 dwelling units/acre The above noted zone districts propose an increase in maximum residential densities by a factor of 3. The NMX (Neighborhood Mixed-Use), CMS (Commercial - Main Street) and CR (Commercial - Regional) zone districts are proposed to be increased from 16 d.u./acre. The CMX (Corridor/Center Mixed-Use) zone district proposed to be increased from 30 d.u./acre. The RMX (Regional Mixed-Use) zone district is proposed to be increased from 45 d.u./acre. Airport Land Use Commission The Fresno County Airport Land Use Commission (ALUC) reviewed the proposed text amendment on August 3, 2020. The ALUC voted unanimously to recommend approval of the proposed text amendment. Council District Advisory Committees The recommendations of the Council District Plan Implementation Committees are as noted below. Council District 1 On August 6, 2020 the Council District 1 Plan Implementation Committee voted 3-0 to recommend approval of the proposed text amendment. Council District 2 On July 13, 2020 the Council District 2 Plan Implementation Committee voted 4-0 to recommend approval of the proposed text amendment. Council District 3 On July 28, 2020, the Council District 3 Plan Implementation Committee voted 6-0 to recommend approval of the proposed text amendment. Council District 4 On July 27, 2020, the Council District 4 Plan Implementation Committee voted 3-0 to recommend approval of the proposed text amendment. Council District 5 On August 10, 2020 the Council District 5 Plan Implementation Committee voted 3-0 to recommend approval of the proposed text amendment. Council District 6 On July 20, 2020, the Council District 6 Plan Implementation Committee voted 7-0 to recommend approval of the proposed text amendment. Council District 7 There is no Council District 7 Plan Implementation Committee at this time. Fulton-Lowell On August 3 2020, the Fulton-Lowell Advisory Committee voted 4-0 to recommend approval of the proposed text amendment. Tower District On July 28, 2020 the Tower District Advisory Committee voted 3-0 to recommend approval of the proposed text amendment. Development Code Text Amendment Findings The Planning Commission shall not recommend and the City Council shall not approve an application unless the proposed amendment meets the following criteria, as set forth in Fresno Municipal Code section 15-5811: 1. The Code text amendment is consistent with the General Plan, the Fresno County Airport Land Use Compatibility Plan, and any applicable operative plans; and Response: Each project applying for an entitlement (i.e. development permit) under the proposed text amendment will be individually reviewed and assessed for consistency with the General Plan, the Fresno County Airport Land Use Compatibility Plan, the underlying base zone district, and any applicable specific or community plans. Text Amendment Application No. P20-02213 has been examined with respect to its consistency with the Fresno General Plan and applicable operative plans and it was concluded that Text Amendment Application No. P20-02213 is consistent with said plans. 2. The amendment is consistent with the purpose of the Development Code to promote the growth of the city in an orderly and sustainable manner and to promote and protect the public health, safety, peace, comfort, and general welfare. Response: The purpose of the proposed text amendment is to provide a process to increase density for eligible parcels, which will promote the growth of the city in an orderly and sustainable manner. As noted above, the purpose of the proposed Text Amendment is to facilitate more intensive residential development of parcels within Mixed-Use and certain Commercial zone districts at strategic points along transportation corridors in order to support transit use, housing production, and economic revitalization. The proposed text amendment was routed to responsible agencies, including the Fresno Police Department, Fresno Fire Department, and all school districts within City limits, for comment regarding its impacts to public health, safety, peace, comfort, and general welfare. No such impacts were identified thus it can be concluded that Text Amendment Application No. P20-02213 is consistent with the purpose of the Development Code. ENVIRONMENTAL FINDING An environmental assessment was prepared for this project in accordance with the requirements of the California Environmental Quality Act (CEQA) Guidelines. CEQA Guidelines Section 15061(b)(3) states that a project is exempt from CEQA if it is "covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA." Staff has conducted a preliminary review of the project and has determined that it is exempt from CEQA pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15061 (b)(3) under the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The proposed Text Amendment establishes a framework for future land use planning and approvals and does not commit the City to any specific project, or development on any particular site. Future applications wishing to rezone and add the Focused Infill (FI) overlay will be required to assess the particular impacts of each proposed project at time of application, including environmental impacts pursuant to the requirements of CEQA. Because the Text Amendment merely creates a procedure for increasing density for eligible parcels and does not approve any physical development with its adoption, it can be seen with certainty that there is no possibility that adoption of the Text Amendment may have a significant effect on the environment. Therefore, this action is exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3); the Environmental Assessment is attached as Exhibit C. Notice of Planning Commission Hearing Pursuant to the requirements of Fresno Municipal Code section 15-5806 (and 15-5007.D), notice of this public hearing was published in the Fresno Bee on July 24, 2020, which is at least 10 days prior to the public hearing. Section 15-5007-D allows the posting of a public hearing notice, in at least one newspaper of general circulation, as an alternative noticing method for large mailings. CONCLUSION The appropriateness of the proposed text amendment has been examined with respect to its consistency with stated goals of the Fresno General Plan; compatibility with surrounding existing and proposed uses; and avoidance or mitigation of potentially significant adverse environmental impacts. These factors have been evaluated as described above and by the accompanying environmental assessment. Upon completion of this evaluation, it can be concluded that Text Amendment Application No. P20-02213 is appropriate. Attachments: Exhibit A: Director Initiation Letter dated July 3, 2020 Exhibit B: Text Amendment No. P20-02213 adding section 15-1614 to Chapter 15 of the Fresno Municipal Code Exhibit C: Finding of No Possibility of Significant Adverse Effect as prepared for Environmental Assessment No. P20-02213 dated July 29, 2020