April 11, 2006
SUBJECT: 2006-0280 Application to Initiate a General Plan Amendment Study to change the Land Use Designation for 740, 750 and 760 San Aleso Avenue from Industrial to Medium Density Residential.
REPORT IN BRIEF
Dollinger Properties submitted a letter (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 (14-27 dwelling units per acre) for three lots that combine for a total of 3.6 acres at 740, 750 and 760 San Aleso Avenue.
The subject site is zoned MS (Industrial & Service) and is currently occupied by three industrial buildings in the middle of a block of industrial sites. Dollinger Properties proposes the land use designation for the sites be changed to residential uses. The proposed change of the property would also require a rezoning from MS (Industrial & Service) to R-3 or R-3/PD (Medium Density Residential)
Staff recommends that the City Council deny the request to initiate the General Plan Amendment Study, because there is not sufficient justification to indicate that the proposed land use designation is compatible with the existing surrounding land uses and with the land use goals for the area. Should the request be approved, the initiation of a study does not commit the City Council to any future land use designations regarding these properties.
BACKGROUND
The applicant is requesting that the Council initiate a study for a General Plan land use designation change from Industrial to Medium Density Residential. The site is currently zoned M-S (Industrial and Service). The existing buildings at the project site are typical for an MS Zoning District. Office support areas, research and development, product assembly and warehousing are considered “light” industrial uses and are usually found in the MS Zoning District.
The site is located mid-block in an industrial area along San Aleso Avenue. There are industrial lots both to the north and south of the project site. San Aleso Avenue is located between an existing single-family neighborhood to the east and Futures Site B which is an industrial intensification site.
Futures Site B is located at the intersection of Mathilda Avenue and U.S. Hwy. 101. This area is identified as a City gateway in both the Community Design Sub-element and the Futures Study and allows Floor Area Ratios up to 100% in order to establish distinctively scaled architecture at the entrance to the City.
EXISTING POLICY
Sunnyvale Municipal Code Section 19.92.020 authorizes only the City Council to initiate proceedings for 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. If initiation were approved by the City Council, a formal application could be submitted by the applicant to staff, with approximately $15,500 in review fees, to further assess the merits of the proposed General Plan Amendment. An 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 General Plan relate to the proposed 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 applicant states in his letter that over the last few years the buildings on the sites have become obsolete in the new economy and renting them has become difficult. The applicant has looked into redevelopment with more modern buildings, but feels that converting to residential would make sense because the sites are located between a residential neighborhood and a hotel. The applicant also states that the conversion would help with the housing shortage along the peninsula and would be a start to the Mathilda Avenue corridor. The applicant also states that converting to residential uses would allow the ownership group to realize the highest economic value for the property.
The applicant did not submit a preliminary concept for this site. The request for a General Plan Amendment from Industrial to Residential Medium Density would likely result in a townhouse-style development similar to those currently being developed in the Futures 7 area near Tasman Drive and Fair Oaks Avenue. Additional details would be provided at the formal application stage.
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 Element would be evaluated. At a minimum, the study would examine the following:
- Consider all possible environmental impacts associated with the new development.
- Examine the appropriateness of new residential uses in a predominately industrial neighborhood of the City.
- Consider the advantages of increased residential opportunities.
- Examine the opportunity to provide additional affordable housing units.
- Evaluate the project’s ability to integrate into the surrounding area.
According to the Housing and Community Revitalization Sub-element, despite being over 86% built out, Sunnyvale has identified adequate sites to accommodate its “fair share” of regional housing needs. The Community Development Strategy also stresses the need to appropriately locate sites where housing opportunities should be pursued. The largest source of available land for new housing is found in the Industrial to Residential (ITR) Zoning District. The City of Sunnyvale has selected areas as Industrial to Residential (ITR) Zones in which specific industrial sites are recommended for the eventual conversion to residential uses. In addition to previously adopted ITR areas, currently pending is an ITR study of a 130-acre area west of Lawrence Expressway south of Duane (near AMD). In addition, a six-acre site on the south side of Arques between Wolfe and N. Fair Oaks is also being studied for rezoning to high density residential.
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.
Conclusion
The proposed General Plan Amendment would result in the development of a residential neighborhood mid-block in an industrial area. There would be no connection to existing residential neighborhoods to the east. Immediately to the west, across San Aleso Avenue, the City allows “gateway” industrial and office development up to 100% FAR. There are City General Plan policies noting the importance of appropriately locating residential neighborhoods within the City and the need to preserve certain industrial areas. Approval of this request would allow the applicant to proceed with filing an application to consider medium density residential uses. Denial of this application would preserve the industrial land use designation for the project sites.
PUBLIC CONTACT
It is not required by the Municipal Code to provide notices for a General Plan Amendment Initiation hearing. Surrounding property owners were not sent notice of this hearing. This application was listed on the City Council agenda and posted on the City’s official notice bulletin board.
ALTERNATIVES
1. Do not authorize the initiation for a General Plan Amendment study on the subject sites.
2. Authorize the initiation of the General Plan Amendment study for the subject sites from Industrial to Residential Medium Density.
3. Initiate a General Plan Amendment study for a range of densities.
4. Authorize the initiation of a General Plan Amendment study for the entire east side (seven industrial lots) of San Aleso Avenue to consider a change from Industrial to Residential;
RECOMMENDATION
Staff recommends Alternative 1 to not authorize initiation of a General Plan Amendment study. Although the request indicates new residential ownership opportunities for the area, staff does not believe the conversion of the three mid-block sites to residential uses is warranted. Staff feels the preservation of industrial uses at this location is important. Although the sites are located adjacent to a residential neighborhood, the two areas are not integrated or connected by the street grid. Also, if ultimately approved, new residential uses would be located adjacent to a Futures Industrial Intensification area that allows up to 100% FAR. There could be compatibility issues with new residential uses located within this area with future intensified development to the west and the existing industrial uses on adjacent lots and along San Aleso Avenue.
The City of Sunnyvale is located in the heart of Silicon Valley. The economy is currently recovering, and office vacancy rates have fallen from a high of 25% to 16%. 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. In the interim, the opportunity for service and start-up businesses to locate in this area should be encouraged.
Although not recommended by staff, alternatively, the City Council could consider studying changes to the entire light industrial block on the east side of San Aleso Avenue. The Council could consider Alternative 4 - to enlarge the residential study area beyond the applicant’s request to consider a change for all seven lots on the industrial block.
Reviewed by:
Trudi Ryan, Planning Officer
Prepared by: Gerri Caruso, Principal Planner
Reviewed by:
Robert Paternoster
Director of Community Development
Approved by:
Amy Chan
City Manager
Attachments
A. Applicant’s letter requesting initiation of a General Plan Amendment study.
B. General Plan Map of project vicinity
C. Zoning Map of project vicinity