REPORT TO THE PLANNING COMMISSION October 5, 2022 FROM: ISRAEL TREJO, Planning Manager Development Services Division BY: THOMAS VEATCH, Planner Development Services Division SUBJECT ..Title Consideration of Development Permit/Planned Development Application No. P21-05557, and related Environmental Assessment No. P21-05557, pertaining to �0.45 acres of property located on the west side of Broadway Street, between Stanislaus and Tuolumne Streets in downtown Fresno (Council District 3) - Planning & Development Department. 1. CONSIDER Environmental Assessment No. P21-05557, dated August 16, 2022, a determination that the proposed project is exempt from the California Environmental Quality Act (CEQA) through a 15332/Class 32 (Infill Development Project) Categorical Exemption; and, 2. DENY the public appeal and UPHOLD the action of the Planning and Development Department Director to approve Development Permit/Planned Development Application No. P21-05557, authorizing the construction on a 37-unit apartment complex with modified development standards subject to compliance with the Conditions of Approval dated August 16, 2022. ..Body EXECUTIVE SUMMARY Development Permit/Planned Development Application No. P21-05557, was filed by Stephanie Say of Paul Halajian Architects on behalf of Dada Enterprises LLC. The Development Permit component proposes the construction of two (2) apartment buildings consisting of 37 total units. The Planned Development component requests to allow greater design flexibility of an infill site by modifying development standards of the Fresno Municipal Code (FMC) related to minimum on-site parking spaces, minimum trash enclosures, and fa�ade design guidelines. The project is located in the DTC (Downtown Core) zone district. The project was approved by the Director on August 16, 2022 and is being considered by the Planning Commission based on an appeal received from a member of the public (Exhibit A - Appeal Letter). Staff recommends upholding the Planning and Development Director's approval based on evidence detailed in this staff report and that specific findings made by the Director in approving the Development Permit and Planned Development Permits in Sections 15-5206 and 156-5905 of the FMC remain valid. BACKGROUND Stephanie Say of Paul Halajian Architects, on behalf of Dada Enterprises LLC, has filed Development Permit/Planned Development Application No. P21-05557 pertaining to a �0.45-acre vacant parcel located on the west side of Broadway Street, between Stanislaus and Tuolumne Streets in downtown Fresno. Surrounding Property Information The project site is planned and zoned for Downtown Core land uses and is in an area generally characterized by a mix of existing land uses including an outdoor play yard and Kepler Neighborhood School (north and east), Mayflower Lofts apartment building (south), and commercial - industrial buildings (west). Furthermore, surrounding properties are primarily planned and zoned for Downtown Core land uses with properties north of Stanislaus Street planned and zoned for Downtown Neighborhood uses. An existing shared alley, which runs north and south between Calaveras and Stanislaus Streets, is located at the rear of the subject property. Due to the grade separation of Stanislaus and Tuolumne streets, the section of the one-way alley adjacent to the project is accessed on H Street, parallel to Tuolumne and exits on H Street adjacent to Stanislaus Street. Additional surrounding property information such as the existing and planned land use designations, as well as the existing zoning districts surrounding the subject property can be found in Exhibits B, C, and D. Project Description The subject application is comprised of two (2) components, a Development Permit, and a Planned Development Permit. The Development Permit component was filed to establish a permitted use and facilitate physical development of a 37-unit apartment complex on a �0.45-acre vacant parcel in downtown Fresno. The apartment complex will consist of two (2) apartment buildings (Building 1 and Building 2). Building 1 (front) will comprise of ten (10) units in a 9,399 square-foot, three story building. Building 2 (rear) will comprise of 27 units in a 15,388 square-foot, two story building. Overall, the project will include 31 studio flats, three (3) lofts, and three (3) 2-story townhome units. Six (6) of the proposed units will have direct entrances from the sidewalk along the Broadway street frontage while the remaining units will be provided access via a common grand entrance to Broadway. Amenities include but are not limited to a common shared courtyard; a laundry facility and recreational lounge room; and security fencing and gates. In addition, on and off-site improvements to be provided including but are not limited to seven (7) on-site parking spaces; one (1) two-cell trash enclosure; landscaping; and sidewalks with street trees. The proposed parking will be accessed from the adjacent alley which is located to the rear of the site. Furthermore, each of the on-site parking spaces will be leased to specific tenants and will not be general spaces available to any tenant, visiting guests, or the public. In addition, there are approximately ten (10) existing on-street parking spaces immediately adjacent to the site as well as additional on-street parking spaces further along Broadway Street (approximately 24 in total). ANALYSIS The subject property is zoned DTC (Downtown Core) and has one (1) street frontage (Broadway Street). Pursuant to Figure 15-1501 of the FMC, Broadway is classified as an Activity Class B Street. Streets classified as Activity Class B are walkable urban corridors with moderate pedestrian activity. As put forth in FMC Table 15-1502, retail, restaurant, and entertainment uses are appropriate in these areas, but ground floor residential or office uses are also appropriate. Pursuant to Table 15-1502 (Use Regulations) and Section 15-5102-D-2 (Zone Clearance Applicability) of the FMC, multi-family residential development is permitted by right (Development Permit) in the DTC-Activity Class B zone district/activity classification and not subject to specific limitations of Table 15-1502 or additional regulations of Article 27 (Standards for Specific Uses and Activities) of the FMC. The development is subject to applicable density, intensity, massing, and design standards of the Downtown Districts (Article 15) which ensures that buildings, renovations, and additions are consistent with the goals of the Downtown Neighborhoods Community Plan (DCNP) and the Fulton Corridor Specific Plan (FCSP) for pedestrian-oriented streetscapes, building form, physical character, and quality. In addition, the DTC District intends to enhance Fresno's business, shopping, and cultural heart by guiding the development of the region's densest, most active, and most interesting mixed-use urban center. According to Table 3-1 (Citywide Standards for Density and Development Intensity) of the Fresno General Plan and Table 15-1503 (Building and Parking Placement and Building Massing Standards - Downtown Districts) of the FMC, the DTC land use and zoning designation provides no limitation to the minimum or maximum residential density and allows for buildings up to 15 stories tall (190-feet max.). As proposed, the two and three story 37-unit project on �.45 acres would result in a density of 82.2 dwelling units per acre which is comparatively less intensive than the maximum potential use of the site. Therefore, the subject site is physically suitable for the proposed multi-family residential development and compatible with the surrounding uses. Planned Development Pursuant to Article 59 of the FMC, Planned Development approval is required for projects on infill sites that desire greater flexibility than what's provided in the development code by specifying customized development standards crafted to respond to site conditions. Furthermore, Section 15-5903 of the FMC identifies that applications are to provide a list of modifications that include deviations from the Development Code, General Plan, applicable operative plan, or adopted policy being proposed and provide an explanation as to why the project cannot be successful should it comply with the strict application of adopted regulations. As mentioned in the executive summary section above and referenced in the Operational Statement and Plan Exhibits (Exhibits E & F), the project requests to modify applicable development standards related to on-site parking, trash enclosures, and fa�ade design guidelines. Specifically, the Planned Development component was filed to modify development standards in accordance with FMC Sections 15-2407 (Parking), 15-2016 (Trash and Refuse Collection Areas), and 15-1505 (Downtown Fa�ade Design Development Standards). In order to grant the requested development code modifications, the required findings shall be made in accordance with FMC Section 15-5905. For informational purposes, if no modifications had been requested the downtown housing project would have otherwise qualified for a ministerial Zone Clearance application process pursuant to Section 15-5102-D-2 of the FMC. The following is an analysis of requested modifications under the Planned Development Component. On-site Parking Pursuant to FMC Table 15-24097 (Required Parking for Downtown Districts), the 37-unit apartment project would require 19 (minimum) on-site parking spaces. The project proposes seven (7) on-site parking spaces which is less than the minimum requirement. Pursuant to FMC Section 15-2413-B (Parking Reductions - Transit Accessibility), the project qualifies for a 30% reduction given the site is located within 1/4 mile of several bus stops and is located within a high-quality transit area. Therefore, the minimum required on-site parking spaces can be reduced to 14 spaces. However, even with the Transit Accessibility reduction the project needs additional relief from the minimum parking requirements. Therefore, the planned development permit component requests to modify the development code to allow for a 63% reduction in the minimum required on-site parking spaces. The requested modification would result in approximately one (1) parking space per five (5) units. According to the applicant and as stated in the operational statement, given the site's small size (�0.45 acres) providing the standard minimum required spaces and associated drive aisles would significantly reduce buildable area on the site and reduce the overall number of residential units thus making the project infeasible. As such, a reduction in required on-site parking is necessary to accommodate the 37-unit project. Solid Waste Enclosures Pursuant to Section 15-2016-B-2 (Trash and Refuse Collection Areas), multi-family residential projects are required to provide one (1) two-cell solid waste and recycling enclosure per 30 units. Therefore the 37-unit project is required to provide two (2) trash enclosures. The application proposes one (1) trash enclosure which is less than minimum requirement. Therefore, the planned development component requests to modify the development code to require one (1) enclosure per 37 units. According to the applicant and as stated in the operational statement, given the site's small size (�0.45 acres) providing the standard minimum required trash enclosures would reduce buildable area on the site and reduce the overall number of residential units thus making the project infeasible. As such, providing less trash enclosures are necessary to accommodate the 37-unit project. In order to support the request, the trash enclosures will be serviced more frequently with three pickups per week (instead of two). Fa�ade Design Guidelines For projects located in Downtown Districts, street facing facades for buildings adjacent to a public street shall comply with the Fa�ade Design Development Standards pursuant to Section 15-1505 of the FMC. Specifically, per FMC Sections 15-1505-A-2-a (Building Height Articulation) and 15-1505-C-4 (Window Depth): (1) an 18-inch by 4-inch band at the top of the first story is required to provide a pedestrian scale horizontal articulation to building facades; and (2) trim at least one inch in depth must be provided around all upper story windows, or windows must be recessed at least two inches from the plane of the surrounding exterior wall. As proposed, the project does not comply with the prescriptive design guidelines related to window depth and fa�ade alignment. Specifically, the project proposes a 12-inch-thick furred wall at the top of the first story and continuing upward to the second and third stories (instead of the required 18-inch by 4-inch band). In addition, the project proposes the second and third story windows to be within the furred wall with 12 inches of relief while the first story windows will be flush with the fa�ade (instead of required trim). Therefore, the Planned Development Permit component is necessary to grant relief from the applicable fa�ade development standard. In doing so, the project will provide variations in windowpane depth to achieve relief and articulation along the primary street facing fa�ade. The modified fa�ade meets the intent of the standard development code requirements and still provides a pedestrian scaled environment. Required Findings As previously mentioned above, in order to grant the requested development code modifications, the required findings shall be made in accordance with FMC Section 15-5905. The Director was able to make the required findings for the Planned Development request, as demonstrated in Exhibit G. FRESNO MUNICIPAL CODE Given the conditions of approval dated August 19, 2022 (Exhibit H), the project will meet all the provisions of the FMC and comply with all applicable design guidelines of the DTC (Downtown Core) zone district except for the specific modifications to development code requested by the Planned Development Permit component. Other Agencies All comments received from the applicable agencies have been incorporated into the conditions of approval for Development Permit/Planned Development Application No. P21-05557. The project will comply with all department comments, conditions, and requirements as incorporated into the conditions of approval dated August 19, 2022. PUBLIC NOTICE AND INPUT Council District 3 Project Review Committee On April 27, 2022, the Council District 3 Project Review Committee reviewed and recommended approval of the project by a 3-0 vote. One committee member inquired about the project's impact on the school yard adjacent to the property during construction. The applicant indicated that construction would occur during regular business hours, estimated it would take 12 months, during summer break as much as possible, and cooperated with neighbors to keep sidewalks clear of debris. A motion to approve was unanimously approved. Notice of Intent to Take Action Pursuant to FMC Section 15-5903-A, Planned Development Permit Applications shall be processed as a Conditional Use Permit, according to the procedures of Article 53. Therefore, according to FMC Section 15-5305, the Planning and Development Department mailed a Notice of Intent to Take Action (Exhibit I) to property owners within 1,000 feet of the subject site on June 8, 2022, in accordance with FMC Section 15-5007. On June 16, 2022, a phone message was received from a representative of Kepler Neighborhood School who expressed concern regarding the safety and air quality impacts that the project's construction may have on the school's play area, which is adjacent to the subject site. As stated in the Council District 3 Project Review Committee section above, the applicant is receptive to concerns and coordinating with the school and surrounding property owners to ensure that the project's construction will have minimal impact on the school and its outdoor play yard. The applicant has also indicated that they will contact the school for coordination once a construction schedule is available. On June 17, 2022, an adjacent property owner provided a letter (Exhibit J) objecting to the project for the following reasons: * Location and proximity of proposed parking spaces to their property. * The limited number of parking spaces proposed. * Potential conflicts that could arise between residents utilizing the alley to access the on-site parking area and the existing businesses which utilize the alley for loading and unloading commercial trucks; and * Mayflower lofts residents who use the subject property for parking. Analysis of Concerns Per FMC Section 15-1504-H-1-a (Parking Access and Entrance Design - Lots with Alley Access) and Policy 6-10-5 of the Fulton Corridor Specific Plan, projects in the downtown planning area (including this project) are required to access parking, service, and loading areas through the alley and access from a street shall not be permitted. As described above, the project will utilize an existing shared alley, which runs north and south between Calaveras and Stanislaus Streets, which is located at the rear of the subject property. Due to the grade separation of Stanislaus and Tuolumne streets, the section of the one-way alley adjacent to the project is accessed on H Street, parallel to Tuolumne and exits on H Street parallel to Stanislaus Street. Reducing the minimum required on-site parking spaces will reduce the overall number of vehicles and tenants utilizing the alley. Furthermore, as mentioned in the Project Description section above, each of the on-site parking spaces will be leased to specific tenants and will not be general spaces available to any tenant, visiting guests, or the public. Therefore, the number of residents needing to access the alley will be very limited. A discretionary condition of approval has been applied that requires the applicant to include a notice in the lease agreement to residents that other neighboring uses utilize the alley and that parking stalls may be temporarily unavailable at certain times. It is also required that residents be made aware of FMC Section 15-1506, which describes the Right to Downtown Operations and states that permitted uses in the downtown area may have impacts including high levels of traffic and traffic congestion, parking impacts, noise, operation of delivery trucks and vans, and other related impacts are to be expected. While the project will provide reduced parking on-site, additional off-site/on-street parking is available in the vicinity. Angled street parking is available along Broadway (adjacent to the project) and continues north along both sides of the street, with a 2-hour limit between the hours of 9 AM to 6 PM. A public lot is located at Broadway and H Streets (Lot 2) and a public garage are also located at Van Ness Avenue and Merced Streets (Merced Street Garage); both offer monthly passes which are available to residents. In addition, numerous private parking lots and garages and intermittent street parking are also located in the vicinity (Exhibit K - Public Parking and Bus Routes Map). Lastly, this project as well as existing neighboring properties and business are subject to the same standards and requirements regarding the use of the shared alley. Specifically, pursuant to FMC Section 14-1013 (Parking in Alleys): a) No person shall stop, stand, or park a vehicle in any alley for any purpose other than the loading, or unloading, of persons or materials. b) No person shall stop, stand, or park a vehicle within an alley in such a manner or under such conditions as to leave available less than ten feet of the width of the roadway for the free movement of vehicular traffic. c) No person shall stop, stand, or park a vehicle within an alley in such a position as to block the driveway entrance to any abutting property; and d) No person shall park a vehicle upon any property adjacent to an alley when any portion of the vehicle or its load projects into such alley. In summation, while the adjacent property owners and residents may have become accustomed to the advantages of the subject property being an unsecured vacant lot with no tenants present, the development and occupancy of the subject property by residential tenants is not an infringement on the adjacent properties. Project approval has been conditioned to comply with all relevant aspects of the FMC to ensure that the project does not have an adverse effect on any surrounding property or uses in the project vicinity. Project Approval and Appeal The Director approved the project on August 19, 2022. An appeal was received on September 1, 2022, by the same neighboring property owner who initially reached out during the public notice process, citing their initial concerns about the perceived impact of the project on their property (Exhibit A - Appeal Letter), which were discussed above. Per the procedures of Article 50 of the FMC, the application was scheduled for a public hearing to be considered by the Planning Commission. Public Hearing Notice Per Section 15-5007 of the FMC, the Planning and Development Department mailed notices of this Planning Commission hearing to surrounding property owners within 1,000 feet of the subject property on May 9, 2022 (Exhibit L). No comments have been received to date of this report. ENVIRONMENTAL FINDINGS The CEQA (Public Resource Code Section 21000 et seq.) permits a public agency to determine whether a project is exempt from CEQA. A determination of a Categorical Exemption from Section 15332/Class 32 (Infill Development) was made, and Environmental Assessment No. P21-05557, dated August 16, 2022, was prepared for this project, which is attached as Exhibit M. Land Use Plans and Policies Per the analysis of land use plans and policies, attached as Exhibit N, the application is consistent with the Downtown Core planned land use identified in the Fulton Corridor Specific Plan, Downtown Neighborhoods Community Plan, Fresno General Plan, and the Fresno County Airport Land Use Compatibility Plan. FRESNO MUNICIPAL CODE FINDINGS Based upon analysis of the applications, staff concludes that the required findings made by the Director to approve the project under Sections 15-5206 (Development Permit Findings) and 15-5812 (Planned Development Permit) of the Fresno Municipal Code are appropriate. The project is also consistent with the Housing Element in accordance with California Government Code �65583. These findings are attached as Exhibit G. If the Planning Commission decides to uphold the appeal and deny the request to develop the multi-family residential development, the commission must find that there is insufficient evidence in the administrative record that the required findings by Section 15-5206 and 15-5812 cannot be made and amend them accordingly. CONCLUSION The appropriateness of the proposed project has been examined with respect to its consistency with the goals and policies of the Fresno County Airport Land Use Compatibility Plan, Fulton Corridor Specific Plan, Downtown Neighborhoods Community Plan, and Fresno General Plan; its compatibility with surrounding existing or proposed uses; and its avoidance or mitigation of potentially significant adverse environmental impacts. The accompanying environmental assessment has evaluated these factors as described above. Considering this evaluation, it can be concluded that the proposed project is appropriate for the site. Attachments: Exhibit A - Appeal letter [September 1, 2022] Exhibit B - Vicinity Map & Aerial Photograph Exhibit C - Planned Land Use & Zoning Map Exhibit D - Project Information Table Exhibit E - Operational Statement Exhibit F - Plan Exhibits (Site Plan, Elevations, Floor Plans, & Landscape Plan) Exhibit G - Fresno Municipal Code Findings & Housing Element Findings Exhibit H - Conditions of Approval [August 16, 2022] Exhibit I - Notice of Intent to Take Action & Map Exhibit J - Letter received by appellant [June 17, 2022] Exhibit K - Public Parking & Bus Routes Map Exhibit L - Public Hearing Notice & Map Exhibit M - Environmental Assessment Exhibit N - Land Use Plans & Policies Exhibit O - Application & Owner Authorization