January 27, 2004 

SUBJECT: 2003-0941 Woodfin Suite Hotels: Request to initiate a General Plan Amendment Study to Change the Land Use Designation for 635 E. El Camino Real from Highway Business to Medium Density Residential (APN: 211-08-030)

REPORT IN BRIEF

The City has received a letter from Samuel Hardage, Chairman and CEO of Hardage Hotels 1, LLC, requesting consideration of a General Plan Amendment Study (GPA) to allow a Land Use designation change from Highway Business/Planned Development (C-2/PD) to Medium Density Residential, Planned Development (R-3/PD). The site is a 2.44 acre property at 635 E. El Camino Real.

The subject site is Zoned C-2/PD (Highway Business/Planned Development) and is currently occupied by the Woodfin Suite Hotel. Woodfin Suite is an extended stay business traveler's hotel that contains 88 units of varying size (1 and 2 bedrooms).  The applicant desires to convert this project to 54 ownership condominium units at a density of 22 units per acre. The proposed conversion of the property would best be accomplished with a Rezone from C-2/PD (Highway Business/Planned Development) to R-3/PD (Medium Density Residential/Planned Development).  The R-3 Zoning would first require a General Plan Amendment to an appropriate General Plan category.

Staff recommends that the City Council initiate a General Plan Amendment Study from Highway Business to Medium Density Residential.

BACKGROUND

The subject site is currently occupied by the Woodfin Suite Hotel, which was approved by the City Council in 1985.  The site has a General Plan Land Use designation of Commercial General Business and is in a C-2/PD (Highway Business/Planned Development) Zoning District (See Attachments C and D including General Plan Land Use Map and Zoning Map). The existing General Business Land Use designation is intended to allow a range of commercial development options, including the present hotel use.  In order to convert the site into ownership condominiums, a General Plan Amendment, Rezoning and Special Development Permit would be required.

The site fronts on East El Camino Real and is surrounded on three sides (South, East, and West) by Highway Business Zones.  To the rear of the property there is an R-4 Zone (High Density Residential) containing a 173-unit apartment complex. 

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 a significant environmental impact (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.

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 and 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. Submittal of a General Plan Amendment application requires payment of a fee of $4,000.00.

The project site is not identified in the Precise Plan for El Camino Real as an Opportunity Area.  The Following Goals, Policies and Action Statements of the Land Use and Transportation Element and the Housing and Community Revitalization Sub-Element of the General Plan address issues that relate to the proposed General Plan Amendment study:

Land Use and Transportation Element:

Policy C1.1 Recognize that the City is composed of residential, industrial and commercial neighborhoods, each with its own individual character; and allow change consistent with reinforcing positive neighborhood values.

Action Statement C1.1.3 Require appropriate buffers, edges and transition areas between dissimilar neighborhoods and land uses.

Goal C2 Ensure ownership and rental housing options in terms of style, size and density that are appropriate and contribute positively to the surrounding area.

Policy C2.1 Provide land use categories for and maintenance of a variety of residential densities to offer existing and future residents of all income levels, age groups and special needs sufficient opportunities and choices for locating in the community.

Policy C2.2 Encourage the development of ownership housing to maintain a majority of housing in the city for ownership choice.

Policy C2.4 Determine appropriate density for housing based on site planning opportunities and proximity to services.

Action Statement C2.4.1 Locate higher density housing with easy access to transportation corridors, rail transit stations, bus corridor stops, commercial services, and jobs.

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

Action Statement N1.1.3 Use density to transition between land use, and to buffer between sensitive uses and less compatible uses.

Goal C4 Sustain a strong local economy that contributes fiscal support for desired city services and provides a mix of jobs and commercial opportunities. 

Policy C4.1 Maintain a diversity of commercial enterprises and industrial uses to sustain and bolster the local economy.

Action Statement  C4.1.3 Promote commercial uses that respond to the current and future retail service needs of the community.

Goal N1 Preserve and enhance the quality character of Sunnyvale's industrial, commercial, and residential neighborhoods by promoting land opportunities that are supportive of the neighborhood concept. 

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

Policy N1.11 Recognize El Camino Real as a primary retail corridor with a mix of uses.

Action Statements  N1.11.1 Use the Precise Plan for El Camino Real to protect legitimate business interests, while providing sufficient buffer and protection for adjacent and nearby residential uses.

Housing and Community Revitalization Sub-Element:

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

Action Statement A.1.d Study increasing the density of residential areas near transit stops and along major transportation corridors in conjunction with regional transportation plans.

Policy A.2 All new residential developments should build at least 75 percent of permitted zoning density.

Precise Plan for El Camino Real:

A Vision for El Camino Real: Clusters of high density residential development will add to the architectural variety of the street.

Fiscal Sub-Element:

Goal 7.1A: Revenue: Maintain and enhance the City's revenue base.

Policy 7.1A.1 Revenue base: Maintain a diversified and stable revenue base for the City.

DISCUSSION

The property owner is requesting that the City initiate a General Plan Amendment Study to consider changing the existing Land Use designation from General Business to Medium Density Residential (24 dwelling units per acre). The hotel currently has 88 rooms which could result in 36 dwelling units per acre, which is the maximum density for the R-4 Zone. Most of the existing residential developments that front on El Camino Real are Zoned R-4. The proposed General Plan Amendment would be only the second such R-3 Zone on El Camino Real.  In the past, the City has pushed residential projects on El Camino to the higher densities (R-4), since it is an appropriate and compatible area for these types of projects.  For this project, the applicant is proposing to consolidate the 88 rooms into 54 larger condominium units.

The applicant cites the following reasons why the proposal is beneficial: 

• Extended stay hotels have changed dramatically in operation and architecture since this hotel was built.
• Woodfin Suite is functionally obsolete since it is no longer competitive in the business traveler's market.
• The hotel is ideally suited for conversion to residential given its proximity to similar residential uses and residential style architecture. 

If the City Council chooses to initiate the requested General Plan Amendment Study, consistency with the General Plan sub-elements such as Housing and Community Revitalization and Land Use and Transportation will be evaluated. At a minimum, the study will examine the following:

• Examine the advantages and disadvantages of the conversion of an existing commercial use to a residential use, including fiscal implications.
• Consider the appropriateness of medium density residential use on El Camino Real.
• Evaluate noise and traffic impacts to the proposed development.
• Examine opportunities to provide additional affordable housing units. 

The Community Development Strategy identifies this site in the Economic Development Action Area and states that El Camino Real should be strengthened as a major provider of retail services and as a major sales tax producer.  The strategy also notes that under-developed areas between major intersections may be candidates for transition to high-density residential or mixed use, provided that such developments do not negatively affect small businesses or adjacent low-density residential neighborhoods.

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 generating 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. Authorize the initiation of the General Plan Amendment Study for the subject site from Highway Business to Medium Density Residential.
2. Initiate a General Plan Amendment study for a range of densities.
3. Do not authorize the initiation of further study on the subject site.

RECOMMENDATION

Alternative #1.

Prepared by:

Steve Lynch
Project Planner

Reviewed by:

Fred Bell
Principal Planner

Reviewed by:

Trudi Ryan
Planning Officer

Reviewed by:

Robert Paternoster
Director of Community Development

Approved by:

Amy Chan
Acting City Manager

Attachments:

A. Letter of Request from Applicant (pdf format)

B. Proposed Development Plans (pdf format)

C. General Plan Land Use Map (pdf format)

D. Zoning Map (pdf format)