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HomeMy WebLinkAboutCC AG PKT 2013-07-08 #EAGENDA STAFF REPORT DATE: July 8, 2013 TO: Honorable Mayor and Members of the City Council THRU: Jill R. Ingram, City Manager FROM: Jim Basham, Director of Community Development SUBJECT: FEASIBILITY ANALYSIS FOR ALTERNATIVE RESIDENTIAL HIGH DENSITY REZONE SITE: MARINA DRIVE SITE SUMMARY OF REQUEST Staff recommends that this report be received and filed and that the Mayor direct staff to place on the July 22, 2013 City Council agenda the second reading of Ordinance No. 1629 to rezone the Accurate Storage site at 1011 Seal Beach Boulevard from Light Industrial to Residential High Density. BACKGROUND At the meeting of June 24, 2013, the City Council instructed staff to contact property owners (Exxon and Chevron) regarding the vacant 4.3 acre parcel bounded by Marina Drive and 1st Street. Staff contacted several representatives of Exxon and Chevron Corporations to determine if the City could obtain permission to conduct Phase 1 and 2 site assessments on the property. Chevron indicated they would not permit a third party assessment. Staff did contact the company that prepared the site assessments for the ARCO gasoline station and obtained an estimated cost of $50,000 to complete a Phase 1 and 2 site assessment on the vacant parcel. In addition, while no initial study has yet been prepared, it is very likely that an environmental impact report would be necessary. Accordingly, the City's housing element consultant contract would need to be amended to include the preparation of an environmental impact report and traffic impact analysis, estimated to cost the City approximately$200,000. In addition, on June 28, 2013, staff received a letter from the State Department of Housing and Community Development (HCD) reviewing the City's 5th Cycle Draft Housing Element. The letter states that if the City does not implement Program 1 a in the 4th Cycle (2008-2014) Housing Element, the 5th Cycle Draft Housing Agenda Item E Element, as drafted, does not comply with state law and will have to be revised to demonstrate adequate sites for the 4th Cycle's unaccommodated need. The implications of the HCD letter are applicable if the City does not rezone either the Marina site or the Accurate Storage site for multifamily zoning by October 2013: • The City has not implemented its 4th Cycle Housing Element • The draft 5th Cycle Housing Element will have to be revised to demonstrate adequate sites for the 4th Cycle's unaccommodated need (19 units) • That site or sites would have to be rezoned within the first year of the planning period for the 5th Cycle • The revised 5th Cycle Housing Element has to be adopted within 120 days of October 15, 2013 • If the City does not meet that deadline, then the State will require that the City must prepare at least two consecutive Housing Elements by the statutory deadline every 4 years instead of every eight 8 years. DISCUSSION The property adjacent to the Marina Park is approximately four acres and located on the southeastern side of First Street. It is zoned for oil extraction and is currently vacant. The owner previously indicated a desire to develop the site for residential use, but the owners have not expressed an interest since then. The City recently submitted and was unsuccessful in being awarded a Prop. 84 statewide parks grant for the possible expansion of Marina Park to include a community pool. 3. Site Studies and Analyses If the City Council directs staff to initiate the process to consider rezoning this site, feasibility and environmental impact studies would be necessary. The feasibility study would examine such matters as the likelihood of residential development and the scope of necessary legislative amendments (e.g., zoning map and general plan amendments) and administrative approvals and entitlements (e.g., subdivision approval) that would be necessary before the sites could be developed with residential uses. The environmental assessment would examine such matters as land use compatibility, parking, transportation/traffic circulation, aesthetics, and air quality impacts. However, in view of the site's prior use involving petroleum products, the most significant part of the environmental impact report (EIR) would most likely be analysis and disclosure of subsurface volatile organic compounds. This information is imperative in order to complete the EIR. The preparation of an EIR for the Marina Park expansion site would require approximately 12-18 months to complete along with the necessary public Page 2 participation. Also, an environmental remediation and action plan can require several years to implement and require numerous clearances from state and possibly federal agencies. In sum, there simply is not enough time to conduct all the necessary studies of the Marina site within state statutory deadlines. Likewise, conducting additional site analysis to find an alternative adequate site that can be developed with the planning period cycle cannot be accomplished within state statutory deadlines. LEGAL ANALYSIS The City Attorney has reviewed this report. FINANCIAL IMPACT An environmental impact report with a traffic impact analysis is estimated to cost $200,000. Phase 1 and 2 assessments are estimated to cost $50,000. Such costs would require an amendment to the consultant's contract (Douglas & Associates) at a cost of $200,000 and an amendment to the FY 2013/2014 Budget. CONCLUSION Based upon the foregoing, staff recommends that the Mayor place the second reading of Ordinance No. 1929 on the agenda for the July 22, 2013 meeting. RECOMMENDATION Staff recommends that this report be received and filed and that the Mayor direct staff to place on the July 22, 2013 City Council agenda the second reading of Ordinance No. 1629 to rezone the Accurate Storage site at 1011 Seal Beach Boulevard from Light Industrial to Residential High Density. S TTED BY: Basham, ector of Community Development Attachment: NOTED AND APPROVED: A. Letter from HCD dated June 28, 2013 Page 3 ng a , City Manager DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 1800 Third Street, Suite 430 P. 0. Box 952053 Sacramento, CA 94252 -2053 (916) 323 -3177 / FAX (916) 327 -2643 www.hcd.ca.gov June 28, 2013 Mr. Jim Basham Director of Community Development City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 Dear Mr. Basham: RE: Review of the City of Seal Beach's 5th Cycle Draft Housing Element Thank you for submitting Seal Beach's draft housing element received for review on April 29, 2013 along with additional revisions received on June 11, 2013. Pursuant to Government Code Section 65585(b), the Department is reporting the results of its review. A telephone conversation on May 16, 2013 with you and your consultant, John Douglas, and subsequent communications facilitated the review. The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State housing element law (Article 10.6 of the Government Code). In particular, the element must be revised to demonstrate adequate sites for the City's unaccommodated need for the 4th planning period and quantified objectives reflecting the results of the City's programs. 1. Include an inventory of land suitable for residential development, including vacant sites and sites having the potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites (Section 65583(a)(3)). The inventory of land suitable for residential development shall be used to identify sites that can be developed for housing within the planning period (Section 65583.2). Unaccommodated Need From 4th Cycle (AB1233): Per conversations with you, Program la from the 2008 -2014 element to rezone between 0.58 and 0.95 developable acres for multifamily development to accommodate the regional housing need allocation (RHNA) for lower- income households was not implemented. As a result, per Government Code Section 65584.09 (AB 1233), the City is required to zone or rezone sites to accommodate the unaccommodated need within the first year of the current planning period. While the element identified and analyzed a candidate site for rezoning, it is our understanding Seal Beach is considering other sites to address the identification of unaccommodated need. Please be aware that any site to be rezoned must meet all the requirements of Government Code Section 65583.2, including identification of land suitable for residential development within the eight -year planning period. Refer to AB 1233 Technical Assistance Memorandum at http: / /www.hcd.ca.gov /hpd /hrc /plan /he /ab 1233 final dt.pdf and Building Blocks at http : / /www.hcd.ca.qov /hhpd / housinq element2 /GS reviewandrevise.php. Mr. Jim Basham Page 2 2. Identify adequate sites which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage the development of a variety of types of housing for all income levels. Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall provide for sufficient sites with zoning that permits owner - occupied and rental multifamily residential use by right, including density and development standards that could accommodate and facilitate the feasibility of housing for very low- and low - income households (Section 65583(c)(1))_ As noted in Finding 1, the City has not completed the required rezone and the corresponding analysis. As a result, the adequacy of sites and zoning were not established. Therefore, the City needs to add or revise programs to address the unaccommodated need from the 4th cycle. 3. Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five -year time frame (Section 65583(b)(1 & 2)). Table V -1 should be revised to reflect the realistic number of units expected to be produced over the full eight year planning period based upon the housing element's implementation programs as well as private planned activities. Please note, to remain on an eight -year planning cycle, pursuant to Senate Bill 375 (Chapter 728, Statutes of 2008) the City must adopt its housing element within 120 calendar days from the statutory due date of October 15, 2013 for Southern California Association of Governments localities. If adopted after this date, the City will be required to revise the housing element every four years until adopting at least two consecutive revisions by the statutory deadline (Government Code Section 65588(e)(4)). More information on housing element adoption requirements is on our website at: http: / /www.hcd.ca.gov /hpd /hrc /plan /he /he review adoptionsteps110812.pdf. The Department appreciates your efforts during the course of our review. We are committed to assist the City of Seal Beach in addressing all statutory requirements of housing element law. If you have any questions or need additional technical assistance, please contact Celia Yniguez, of our staff, at (916) 327 -6470 or celia.yniguez @hcd.ca.gov. Sincer- ly, len A. Campora Assistant Deputy Director