June 17, 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. P20-00460 and related Environmental Finding for Environmental Assessment No. P20-00460, to modify zoning and use regulations for Lodging-to-Dwelling uses within the City of Fresno 1. RECOMMEND APPROVAL (to the City Council), of a finding set forth in Environmental Assessment No. P20-00460, dated May 15, 2020, that Text Amendment Application No. P20-00460 is exempt from the California Environmental Quality Act (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. P20-00460, to modify zoning and use regulations for Lodging-to-Dwelling uses within the City of Fresno. ..Body EXECUTIVE SUMMARY Text Amendment Application No. P20-00460 was initiated pursuant to Fresno City Council Resolution No. 2019-106 (Exhibit A). In May 2019, the proposed Text Amendment was initiated by the Fresno City Council along with the Non-Transient Motel Inspection Program. The Motel Inspection Program authorized inspection of all rental units to ensure compliance with minimum health and safety standards. The proposed Text Amendment would provide pre-2020 hotel and motel owners the option to convert to multi-family residential to accommodate non-transient residents along with the requirement to bring their hotel or motel into compliance with all current State Codes. The proposed Text Amendment to the Citywide Development Code proposes to modify use regulations to Mixed-Use, Commercial, Employment, and Downtown zone districts to conditionally permit Lodging-to-Dwelling conversions of eligible hotels and creates development standards for such projects. BACKGROUND / ANALYSIS Text Amendment Application No. P20-00460 was initiated pursuant to Fresno City Council Resolution No. 2019-106 to amend the Citywide Development Code to set minimum standards for non-transient lodging. The proposed Text Amendment was initiated by the Fresno City Council along with the Non-Transient Motel Inspection Program. The Motel Inspection Program authorized inspection of all rental units to ensure compliance with minimum health and safety standards. The proposed Text Amendment would provide pre-2020 hotel and motel owners the option to convert to multi-family residential to accommodate non-transient residents along with the requirement to bring their hotel or motel into compliance with all current State Codes. The proposed Text Amendment to the Citywide Development Code proposes to modify zoning and use regulations to Mixed-Use, Commercial, Employment, and Downtown zone districts to conditionally permit Lodging-to-Dwelling conversions of eligible hotels. The proposed Text Amendment (City of Fresno Text Amendment Application No. P20-00460) will provide an application process for owners of hotels and motels which were constructed prior to January 1, 2020 to convert an existing building from a commercial use to a residential use in order to accommodate non-transient residents, with requirements that an applicant bring their building into compliance with all applicable State codes, including the Building, Fire and Electrical codes. The proposed Text Amendment will also include an amendment to the use table for certain zone districts to allow for conversion of pre-2020 hotel/motels to accommodate non-transient residents without requiring an amendment to the site's land use or zone district. The proposed Text Amendment would conditionally permit multi-family residential land uses in districts which permit hotel and motel land uses, such as Mixed-Use, Commercial, Employment, and Downtown zone districts. Hotels and motels wanting to convert to multi-family residential will be reviewed individually and required to submit a Conditional Use Permit with the City of Fresno for discretionary review and will be subject to the provisions of the California Environmental Quality Act (CEQA). 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 clarifies the requirements of a conversion and makes the use conditionally permitted in districts which previously did not permit the use. Summary of Text Amendment Text Amendment Application No. P20-00460 proposes to add a section to the Citywide Development Code that conditionally permits Lodging-to-Dwelling conversions in Mixed-Use, Commercial, Employment, and Downtown zone districts. As proposed, the proposed Text Amendment includes: 1. Provides for a Conditional Use Permit application process for owners of hotels and motels that were constructed and operational prior to January 1, 2020 to convert an existing lodging use to a residential use to accommodate non-transients residents, with the requirements that the applicant bring their building into compliance with all applicable State codes. Format 2-6 the same... 2. Individual projects will be subject to discretionary review of a Conditional Use permit that will be subject to California Environmental Quality Act (CEQA). 3. Streamlines and clarifies the requirements of a conversion and makes the use conditionally permitted in districts which previously did not permit residential uses. 4. Common-use kitchen space requirements which would require minimum kitchen facilities including a sink, food preparation counter, storage cabinets, and permanent cooking facilities. 5. Legal Non-Conforming Structure and Site Features to permit hotels and motels lawfully constructed prior to the adoption of the current Municipal Code repair, maintain, and replace structures and site features of Eligible Hotels. 6. Addresses Fresno City Council Resolution 2019-206 and ensures minimum health and safety standards for non-transient residents. Airport Land Use Commission The Fresno County Airport Land Use Commission (ALUC) reviewed the proposed Text Amendment on June 1, 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 The Council District 1 Plan Review Committee is scheduled to hear the Text Amendment on July 2, 2020. Council District 2 On June 8, 2020, the Council District 2 Plan Implementation Committee voted 5-0 to recommend approval of the proposed Text Amendment. Council District 3 On May 28, 2020, the Council District 3 Plan Implementation Committee voted 6-0 to recommend approval of the proposed Text Amendment with the recommendation that the full kitchen to unit ratio be 4 units/kitchen and that anti-displacement language be added to the ordinance. Council District 4 On June 8, 2020, the Council District 6 Plan Implementation Committee voted 5-0 to recommend approval of the proposed Text Amendment. Council District 5 The Council District 5 Plan Review Committee is scheduled to hear the Text Amendment on June 22, 2020. Council District 6 On June 1, 2020, the Council District 6 Plan Implementation Committee voted 5-0 to recommend approval of the proposed Text Amendment with the recommendation that open space be required for each project when space is available. Council District 7 There is no Council District 7 Plan Implementation Committee at this time. Tower District The Tower District Design Advisory Committee is scheduled to hear the Text Amendment on June 9, 2020. 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 Development 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 a Conditional Use 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. P20-00460 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. P20-00460 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 for existing hotels and motels to be converted and to require any applicant to comply with State codes including Building, Fire and Electrical codes, this will promote the growth of the city in an orderly and sustainable manner and also promote and protect the public health, safety and general welfare. The proposed Text Amendment was routed to Department of Public Utilities Water Division, Department of Public Utilities Planning and Engineering, Department of Public Utilities Solid Waste Management, Department of Public Works Traffic Planning, Fresno Irrigation District, Air Pollution Control District, Historic Preservation, Fresno Fire Department, Fresno Police Department, Flood Control District, and Building and Safety Services 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. P20-00460 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 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. It does not intensify the use of hotel/motel buildings beyond what is already in place. Further, the proposed Text Amendment requires that future applications for lodging conversions obtain discretionary approval from the City via a Conditional Use Permit, at which time the particular impacts of each proposed project will be assessed, including environmental impacts pursuant to the requirements of CEQA. Because the Text Amendment merely creates a procedure for applying for conversions and does not approve any conversions 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 June 5, 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. P20-00460 is appropriate. Attachments: Exhibit A: Fresno City Council Resolution No. 2019-106 Exhibit B: Text Amendment No. P20-00460 adding Section 15-2737.5 to the Fresno Municipal Code Exhibit C: Finding of No Possibility of Significant Adverse Effect as prepared for Environmental Assessment No. P20-00460 dated May 15, 2020