REPORT TO THE PLANNING COMMISSION June 5, 2019 FROM: MIKE SANCHEZ, Assistant Director Development Services Division THROUGH: RALPH KACHADOURIAN, Supervising Planner Development Services Division BY: CHRIS LANG, Planner Development Services Division SUBJECT ..Title Consideration of Conditional Use Permit Application No. P18-02321 and related Environmental Assessment No. P18-02321, filed by Steve Kalpakoff of Terra Bella Residential Design Agency, on behalf of Tommy Phelen, and pertains to approximately 0.79 acres of property located on the east corner of B and Calaveras Streets (Council District 3, Councilmember Arias) 1. ADOPT Environmental Assessment No. P18-02321 dated April 22, 2019, a determination that the proposed project is exempt from the California Environmental Quality Act (CEQA) through a Class 32 Categorical Exemption. 2. APPROVE Conditional Use Permit Application No. P18-02321 requesting authorization to construct a 15-unit multi-family residential development in the RS-5/NR (Single Family Residential, Medium Density/Neighborhood Revitalization) zone district to provide affordable housing. ..Body EXECUTIVE SUMMARY Steve Kalpakoff of Terra Bella Residential Design Agency, on behalf of Tommy Phelen of Cen Cal Apartments, has filed Conditional Use Permit Application No. P18-02321 pertaining to approximately 0.79 acres of vacant property located on the east corner of B and Calaveras Streets. The applicant proposes the construction of a new 15-unit multi-family residential development consisting of three two-story buildings and three one-story buildings. Multi-family residential complexes are permitted in the RS-5/NR (Single Family Residential, Medium Density/Neighborhood Revitalization) zone district subject to approval of a Conditional Use Permit. All units are proposed as affordable housing. The project proposes on-site and off-site improvements as well, including off-street parking, a trash enclosure, sidewalks, internal walkways, and open space. The project qualifies for a density bonus, as well as concessions from the requirements of the Fresno Municipal Code (FMC) per Article 22, Affordable Housing Density Bonus. The applicant will be required to covenant at least 20 percent of the units as low-income housing to qualify for these bonuses. The property is a Housing Element Site and designated as Above Moderate income of 5 to 12 du/ac; the project proposes low-income units in excess of 12 du/ac, and therefore is consistent with the Regional Housing Need Allocation (RHNA). Pursuant to Section 15-906-B of the Fresno Municipal Code, when a Duplex or Multi-Unit Residential use is proposed in the RS-5 zone district, the Planning Commission shall approve, conditionally approve, or deny applications for Conditional Use Permits following a public hearing. BACKGROUND/ANALYSIS The subject property is currently vacant and located along a partially developed block, surrounded by single family residential to the northeast, southeast and southwest, and multi-family residential to the northwest. The property is zoned RS-5/NR (Single Family Residential, Medium Density/Neighborhood Revitalization Overlay). Multi-family is permitted in the RS-5 zone district subject to a Conditional Use Permit, and projects are subject to the development standards of the RM-1 (Multiple Family Residential, Medium High Density) zone district, pursuant to �15-906 of the FMC. The NR (Neighborhood Revitalization) overlay district modifies development standards of multi-family by allowing density to be increased to 16 du/ac, and does not require a neighborhood meeting prior to application submittal. Additional provisions of the NR overlay district require that proposed structures maintain the character of surrounding single family housing. The surrounding property to the south and west, both adjacent and across B Street, is developed with single family residential craftsman style homes. Properties located across Calaveras Street are developed with both single and multi-family residential developments which similarly evoke ranch and craftsman architectural styles. The prevailing block setback is approximately 15 feet, and no sidewalk has been constructed on the northeast side of B Street. The applicant will be required to provide off-site improvements, including sidewalk, along the entire frontage of the property. The applicant is proposing the construction of a 15-unit multiple family development with three four-unit, two story structures and three single unit, one story structures on vacant property. Vehicular access and parking will be provided via an existing alley to the rear of the property, and internal pedestrian pathways will be provided per the FMC, which require direct connections to a public sidewalk. The single unit structures will be constructed closest to the sidewalk on the southeast portion of the property in order to provide continuity of the single family residential character of the block, with the two story structures located closest to the alley, with the exception of a two story structure on the corner of B and Calaveras Streets. All structures will be required to provide architectural features to provide an appearance consistent with the surrounding single family residences. The Neighborhood Revitalization Overlay zone district modifies the requirements of the base zone district with the purpose of preserving the unique character of neighborhoods near Downtown and enhancing their walkability. The NR overlay permits multi-family residential of up to 16 dwelling units per acre (du/ac), and does not require a neighborhood meeting. The applicant is proposing 15 affordable units on 0.79 acres of property, which is approximately 19 du/ac. An affordable housing bonus will be applied to the property which provides a bonus based upon the total number of units which are covenanted as affordable as defined in Health and Safety Code Sections 50079.5 and 50105. The maximum permitted density with bonuses is 22 du/ac, and the project is below this threshold. The property is a Housing Element Site and designated as Above Moderate income of 5 to 12 du/ac; the project proposes low-income units in excess of 12 du/ac, and therefore is consistent with (RHNA). Additionally, affordable housing incentives or concessions can provide modifications of site development standards or development code requirements, including parking reductions and modification of zoning code requirements or site development standards of up to 20 percent. The project provides adequate open space and internal connections to public sidewalks. The prevailing block setback is 15 feet and the applicant is proposing a 20 foot setback. The project is conditioned to make minor modifications to the location of the trash enclosure as well as the front yard setback to comply with the FMC. The applicant shall also provide additional screening between two-story structures and single family residential districts. Modifications were made to the original site plan in order to comply with the FMC, and at the time of report preparation revised elevations and floor plans had not been received by staff. The project is conditioned to demonstrate compliance with fa�ade design standards of the NR overlay zone district. The project complies with all requirements of �15-906 of the FMC, which identifies that the development standards of the RM-1 (Multiple Family Residential, Medium High Density) shall apply to the underlying RS-5 (Single Family Residential, Medium Density) zone district. Notice of Planning Commission Hearing The Development and Resource Management Department mailed notices of this Planning Commission hearing to surrounding property owners within 1000 feet of the subject property. A neighborhood meeting was not required per the provisions of �15-1611-B-2 of the FMC. Land Use Plans and Policies As proposed, the project would be consistent with the Fresno General Plan goals and objectives related to residential land use and the urban form: Policy LU-2-a promotes development of vacant, underdeveloped, and re-developable land within the City Limits where urban services are available by considering the establishment and implementation of supportive regulations and programs. Policy LU-2-b promotes residential infill development of existing vacant lots and underutilized sites within the City as a strategy to help meet the affordable housing needs of the community. Policy LU-5-d promotes medium-high density residential uses to optimize use of available or planned public facilities and services and to provide housing opportunities with convenient access to employment, shopping, services, and transportation. Policy LU-5-g recommends to allow new development in or adjacent to established neighborhoods that is compatible in scale and character with the surrounding area by promoting a transition in scale and architectural character between new buildings and established neighborhoods, as well as integrating pedestrian circulation and vehicular routes. Policy D-1-A requires all new multi-family residential development along pedestrian-oriented streets (collector and local), to provide direct pedestrian street access and to promote walkable connectivity, individualization, family-friendly development, identity, and street safety to the maximum extent reasonably feasible. The project would also be consistent with the Downtown Neighborhoods Community Plan goals and objectives for the Edison Neighborhoods Urban Form and Land Use: Policy 2.1.3 promotes the transformation of the Edison Neighborhoods into a safe neighborhood that reflects its unique identity by redeveloping in a traditional neighborhood form that builds upon the Edison Neighborhoods' historic character and rich history. Goal 2.9 is intended to create a variety of housing types in Downtown Neighborhoods by introducing additional, pedestrian-friendly, contextually-appropriate housing in the Downtown Neighborhoods in order to revitalize existing neighborhoods, generate a well-rounded resident population, and restore the late 19th and early-20th century neighborhood pattern of Community Plan Area's residential areas. Therefore it is staff's opinion that the proposed project is consistent with respective general and community plan objectives and policies and will not conflict with any applicable land use plan, policy or regulation of the City of Fresno. Furthermore, the proposed project, including the design and improvements of the subject property, is found; (1) to be consistent with the goals, objectives and policies of the applicable Fresno General Plan and Downtown Neighborhoods Community Plan; (2) to be suitable for the type and density of development; (3) to be safe from potential cause or introduction of serious public health problems; and, (4) to not conflict with any public interests in the subject property or adjacent lands. ENVIRONMENTAL FINDINGS The California Environmental Quality Act (Public Resource Code Section 21000 et seq.) permits a public agency to determine whether a particular project is exempt from CEQA. A determination of a Categorical Exemption from Section 15332/Class 32 was made and Environmental Assessment No. P18-02321 was completed for this project on April 22, 2019. This project qualifies for a Section 15332/Class 32 Categorical Exemption because the proposed project is characterized as infill development and meets the conditions of the aforementioned CEQA section. The site is approximately 0.79 acres in size, located within the Fresno City limits, and is consistent with the Fresno General Plan planned land use of Medium Density Residential. The site is surrounded by urban uses and has full access to public utilities and services. No adverse environmental impacts would occur as a result of the proposed project. The site has no value as habitat for endangered, rare, or threatened species and complies with all conditions of the Class 32 Categorical Exemption. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. FRESNO MUNICIPAL CODE FINDINGS Based upon analysis of the applications, staff concludes that the required findings of Section 15-5306 of the Fresno Municipal Code can be made. These findings are attached as Exhibit L. CONCLUSION The appropriateness of the proposed project has been examined with respect to its consistency with goals and policies of the Fresno General Plan and the Downtown Neighborhoods Community Plan; its compatibility with surrounding existing or proposed uses; and its avoidance or mitigation of potentially significant adverse environmental impacts. These factors have been evaluated as described above and by the accompanying environmental assessment. Upon consideration of this evaluation, it can be concluded that Conditional Use Permit Application No. P18-02321 is appropriate for the subject property. Attachments: Exhibit A - Vicinity Map Exhibit B - Aerial Photograph Exhibit C - Zoning Map Exhibit D - Noticing Map Exhibit E - Project Information Tables Exhibit F - Operational Statement Exhibit G - Site Plan Exhibit H - Floor Plan Exhibit I - Elevations Exhibit J - Conditions of Approval dated June 5, 2019 Exhibit K - Fresno Municipal Code Findings Exhibit L - Environmental Assessment