December 2, 2003

SUBJECT: 2003-0813 - The Riding Group: Request to Initiate a General Plan Amendment Study to change the Land Use Designation for 1279 and 1278 Lawrence Expressway from Industrial to Medium Density Residential (APN: 110-15-044, 110-15-045)

REPORT IN BRIEF

The City received a letter from The Riding Group (See Attachment A), requesting consideration of a General Plan Amendment Study (GPA) to allow for a Land Use designation change from Industrial to Medium Density Residential (24 dwelling units per acre) for two lots that combine for a total 6.63 acres at 1279 and 1287 Lawrence Expressway.

The subject site is Zoned MS (Industrial & Service) and is currently occupied by two industrial buildings.  The Riding Group proposes to redevelop the site with 120 townhouses for a total project density of 18 units per acre.  The proposed conversion of the property would require a Rezone from MS (Industrial and Service) to R-3/PD (Medium Density Residential/Planned Development).

Staff recommends that City Council does not initiate the General Plan Amendment Study from Industrial and Service to Medium Density residential.

BACKGROUND

The applicant is requesting a GPA study for two parcels located at the southeast corner of Lawrence Expressway and Highway 237. The current General Plan designation is for Industrial and the site is Zoned MS (See Attachments B & C including General Plan Land Use Map and Zoning Map).  Office support areas, research and development, product assembly and warehousing are considered “light” industrial uses and are usually found in the M-S Zoning District.  The existing research and development/office uses are consistent with the existing Industrial and Service Land Use designation.

The site is surrounded by Industrial Zoned properties.  There are nearby sites Zoned for Residential Mobile Homes located south of the subject parcels. In order to develop the site into medium density residential uses, a General Plan Amendment, Rezoning and Special Development Permit would be required.  The site is located in an area that is predominately industrial, although residential mobile home parks are located within proximity.

A proposal for 176 apartment units at the site was reviewed by the City Council in 1988.  Some concerns cited by staff in the evaluation of that proposal included the isolation of the residential development, and the lack of proximity to neighborhood parks, schools and shopping centers.  It was noted that the edges of the neighborhood were not appropriate for residential use but rather for industrial.  The streets are wider in an industrial neighborhood as they are defined to serve industrial uses.  More comments specific to the proposal regarding the proposed architecture, landscaping and site planning were also noted.  The project involved a Rezoning to M-S/PD, but did not amend the General Plan of Industrial for the site.   The project was denied 4-3 by City Council in accordance with staff recommendation at the time. 

EXISTING POLICY

Sunnyvale Municipal Code Section 19.92.020 authorizes only the City Council to initiate proceedings for the adoption of an amendment to the General Plan.  City Code requires the City Council to first review a request to initiate a General Plan Amendment in order to determine if the request warrants further study.  The approval of this initiation would allow a formal application to be submitted to staff to further assess the merits of the proposed General Plan Amendment study; approval of the initiation does not commit the City Council to approve a General Plan Amendment, nor any specific project proposal.

The Following Goals, Policies and Action Statements of the Land Use and Transportation Elements and the Housing and Community Revitalization Sub-Element of the General Plan address issue that relate to the proposes General Plan Amendment study: 

Land Use and Transportation Element:

          Policy N1.1 Protect the integrity of the City’s neighborhoods; whether residential, industrial or commercial.

          Action Statement N.1.1.1 Limit the intrusion of incompatible uses and inappropriate development into city neighborhoods.

          Policy N1.2 Require new development to be compatible with the neighborhood, adjacent land uses, and the transportation system.

          Action Statement N1.3.1 Review development proposals for compatibility within neighborhoods.

          Policy N1.6 Safeguard industry’s ability to operate effectively, by limiting the establishment of incompatible uses in industrial areas.

Community Design Sub-Element:

          Policy A.2 Ensure that new development is compatible with the character of special districts and residential neighborhoods.

Housing and Community Revitalization Sub-Element:

Goal A Foster the expansion of housing supply to provide greater opportunities for current and future residents within limits imposed by environmental, social fiscal and land use constraints.

Environmental Status

This action is not a project under the California Environmental Quality Act (CEQA) since the initiation of a General Plan Amendment study has no possibility of creating significant environmental impacts (See CEQA Guidelines Article 5, Section 15061(b)(3)).  If a General Plan Amendment Study is initiated, environmental review will be conducted at that time.

DISCUSSION

The Riding Group is requesting that the City initiate a General Plan Amendment Study to consider changing the existing Land Use designation from Industrial to Residential Medium Density (24 dwelling units per acre). Details of future construction would be examined through the standard development review process.

The site is bounded by Highway 237 to the north, Lawrence Expressway to the west and south, and MS (Industrial and Service) Zoned properties across Lawrence Station Road to the east.

The preliminary concept presented by the applicant of this General Plan Initiation study calls for the development of 120 townhouses.  The three story townhouses would range from 1,200 to 1,700 square feet and contain two, three or four bedrooms. A conceptual plan for this proposal is included in Attachment B.  The applicant cites the following reasons for why the proposal would benefit the community:

• The project is located in close proximity to existing public transportation. 
• The project would provide the required 12.5% of the units for below market rate housing.  
• Project site is in close proximity to recreational uses (Baylands Park).
• The project would promote the viability of the nearby commercial retail centers at Tasman Square and Lakewood Shopping Center. 
• The project would add character and visual interest to one of the primary gateways into the City.

The Residential Medium Density Land Use designation would accommodate the R-3 Zoning District.  The R-3 Zoning District allows up to a 24 units per acre density.  The proposal includes a density of 18 units per acre.  The R-3 Zoning District allows a minimum project lot size of 8,000 square feet and the minimum lot area of one unit per 1,800 square feet. 

The site would be subdivided into 120 ownership lots and would necessitate the need to Rezone the site to include a “Planned Development” combining district. The Planned Development Combining District enables the consideration of deviations from the Code and/or imposition of more restrictive requirements. The PD combining district provides flexibility in formulating a project that promotes transition and reinvestment of the neighborhood and allows townhouse-style ownership housing. Additional deviations may be requested as part of the development proposal.  Further details and requests of the project have not been identified at this point and would be provided with a formal application.

Due to the scope of the project and characteristics of the site, noise and traffic impacts will need to be evaluated.  A formal application will consider all possible environmental impacts that may be affected by the new development.  Although only a conceptual plan has been provided to staff, the Traffic Division has reviewed the plan and notes that a significant increase in total daily and weekend trips would result from the proposed development of the site.

If the City Council decides to initiate the requested General Plan Amendment Study, consistency with the General Plan Elements such as the Housing and Community Revitalization and Land Use and Transportation will be evaluated. The Noise Sub-Element would also be examined.  At a minimum, the study will examine the following:

• Examine the appropriateness of new residential uses in a predominately industrial region of the city
• Consider the advantages of increased residential opportunities
• Evaluate noise and traffic impacts to the proposed development 
• Examine the opportunities to provide additional affordable housing units

Community Development Strategy

The project site is located in an industrial area nicknamed “The Woods.” This area is considered one of the four “Office and Industrial Action Areas”, as described in the Community Development Strategy presented to the City Council earlier this year.   The Woods encompasses approximately 96 acres and is predominately made up of Class C buildings on small lots.  Most of the properties are well maintained.  This site, however, consists of the only Class B type structures in this industrial neighborhood. A transition of this site from industrial to residential uses would result in a 7% decrease in the total area of The Woods.  The Community Development Strategy designates The Woods as an area for the following strategies:

• Review current zoning to make sure it encourages and supports the retention of small business.
• Marketing and promotion of the Woods as a location for support services and start-up companies
• Outreach to small businesses in the area to assist in problem solving.

The City of Sunnyvale is located in the heart of Silicon Valley.  Although the economy is currently in a decline, the demand for high quality, Class A buildings is still strong.  Eventually, there will be a demand for conversion and reinvestment in Class C sites.  “The Woods” industrial area is intended to remain available for Class C buildings and the opportunity for service and start-up businesses to locate in this area should be encouraged.  There could be compatibility issues with new residential uses located within this area.

The Community Development Strategy also points out the need for increased housing opportunities within the City.  Due to the lack of vacant land within City limits, this goal can only be achieved through the conversion of existing uses on certain parcels.  A greater number of housing units would need to be developed than exist presently on those properties. The strategy also stresses the need to appropriately locate sites where housing opportunities should be pursued.  The City of Sunnyvale has selected areas as ITR Zones in which specific industrial sites are recommended for the eventual conversion to multi-family residential uses; however; this site lies in an area already designated as an “Action Area,” which calls for the retention or reinvestment of industrial uses.  Staff feels that the preservation of industrial uses at this location is essential to long-term sustainability within the City. 

FISCAL IMPACT

There is no fiscal impact to the City to initiate a General Plan Amendment study.  If the Council initiates the study, a formal application with appropriate fees would need to be submitted.  These fees off-set the costs of doing the study.

PUBLIC CONTACT

Notification of the City Council meeting for this item is part of the standard agenda publication. A copy of the report has been provided to the applicant.

ALTERNATIVES

1.      Do not authorize the initiation of further study on the subject site.

2.      Authorize the initiation of the General Plan Amendment study for the subject site from Industrial to Residential Medium Density.

3.      Initiate a General Plan Amendment study for a range of densities.

RECOMMENDATION

Alternative 1.

Prepared by

Ryan M. Kuchenig
Assistant Planner

Reviewed by:

Trudi Ryan
Planning Officer

Reviewed by:

Robert Paternoster
Director, Community Development

Approved by:

Robert S. LaSala
City Manager 

Attachments

A.      Letter of Request from the applicant

B.      Conceptual Plan for subject site

C.      General Plan Land Use Map

D.      Zoning Map