SunnyvaleRTC

February 14, 2006

SUBJECT: 2005-1233 Application to Initiate a General Plan Amendment Study to change the Land Use Designation for 1275 - 1287 Lawrence Station Road from Industrial to High Density Residential

REPORT IN BRIEF

Trumark Companies 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 Very High Density Residential (46 dwelling units per acre) for two lots that combine for a total 6.63 acres at 1279 and 1287 Lawrence Station Road.

The subject site is Zoned MS (Industrial & Service) and is currently occupied by two industrial buildings. Trumark Companies proposes to redevelop the site with a mix of uses including retail, office and residential. The proposed conversion of the property would require a Rezone from MS (Industrial and Service) to R-5/PD (Very High Density Residential/Planned Development).

Staff recommends that City Council deny the request to initiate the General Plan Amendment Study from Industrial and Service to High Density residential. Should the request be approved, the initiation of the study does not commit City Council to any future land use decisions regarding theses properties.

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 A & B 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 located in an area that is predominately industrial, although residential mobile home parks are located across Lawrence Expressway. In order to develop the site into residential uses, a General Plan Amendment, Rezoning and Special Development Permit would be required.

A General Plan Initiation proposal for a residential project was reviewed by the City Council in 2003(RTC 03-0425). Staff noted concerns that the proposal included the loss of industrial land and the lack of proximity to neighborhood parks, schools and shopping centers. It was also noted that the edges of the neighborhood were not appropriate for residential uses. The streets are wider in an industrial neighborhood as they are defined to serve industrial uses. Specifically, the site is designated within the Community Development Strategy as an area that needs reinvestment and should be preserved for industrial uses. The initiation request was denied 4-3 by City Council in accordance with staff recommendation.

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. If the initiation were approved by City council, a formal application could be submitted to staff to further assess the merits of the proposed General Plan Amendment study. 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

Trumark Companies is requesting that the City initiate a General Plan Amendment Study to consider changing the existing Land Use designation from Industrial to Residential Very High Density (46 dwelling units per acre). More 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 calls for the development of a mixed use project including retail, office and residential uses. A perspective of the conceptual architecture for this proposal is included in Attachment A. The applicant cites the following for how this application differs from previous requests to initiate a General Plan change:

Previous residential proposals lacked the amenities of retail and open space.
The project creates a strong sense of arrival at this Sunnyvale gateway from Highway 237.
The project responds to the neighborhood’s request for local retail within walking distance of existing residential neighborhoods, nearby employment centers and two light rail stations

Neither a General Plan amendment nor a rezoning can require the property owner to develop a mixed use project as currently proposed by the applicant.

The Residential Very High Density Land Use designation would accommodate the R-5 Zoning District. The R-5 Zoning District allows up to a 46 units per acre density. The R-5 Zoning District allows a minimum project lot size of 8,000 square feet and the minimum lot area of one unit per 950 square feet. The R-5 Zoning District also allows consideration of mixed use residential and retail and other non-residential uses.

The applicant has not indicated the number of residential units and the amount of retail and office space that would be accommodated with this proposal. Additional 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 would consider all possible environmental impacts associated with the new development. Similar to the previous proposal of the site, the Traffic Division anticipates 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 would 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, retail, and office 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 in 2003. 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.

Staff is currently working on the study issue titled “Zoning Land for Service Uses” scheduled for City Council review in March of 2006. Staff is considering recommending the Woods for a rezoning study to a revamped Commercial and Industrial Service Zoning District.

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. The strategy also stresses the need to appropriately locate sites where housing opportunities should be pursued. 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. Currently pending are ITR studies of a 130-acre area west of Lawrence Expressway south of Duane, and a six-acre site on the south side of Arques between Wolfe and N. Fair Oaks.

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 a mix of commercial, office and residential opportunities to the site and surrounding area. Staff notes the importance of appropriately locating residential uses within the city and the need to preserve certain industrial neighborhoods. Approval of this request enables an application to be filed to consider a very high density residential use along with a retail and office component. Denial of this request preserves the industrial designation for the site.

PUBLIC CONTACT

It is not required by the Municipal Code to provide notices for a General Plan Initiation hearing. This application was also listed on the City Council agenda and posted on the City’s official notice bulletin board.

ALTERNATIVES

Do not authorize the initiation for a General Plan Amendment study on the subject site.
Authorize the initiation of the General Plan Amendment study for the subject site from Industrial to Residential Very High Density.
Initiate a General Plan Amendment study for a range of densities.

Staff recommends Alternative 1 to not authorize initiation the General Plan amendment Study. Although, the request indicates new commercial opportunities for the site and surrounding area, staff does not feel that conversion of the site to residential uses is warranted. The site is noted within the Community Development Strategy as a site needing reinvestment as well as retention for industrial uses. Staff feels that the preservation of industrial uses at this location is essential to long-term sustainability within the City. Sites currently zoned for conversion from Industrial to Residential are considered more appropriate for a similarly proposed redevelopment.

Staff finds the applicant’s arguments that the site responds to the need for local retail unpersuasive as major roads (Lawrence Expressway and Tasman) would need to be crossed. Also the light rail stops, while nearby, are more than 2000 feet away, making use of the light rail less likely.

The City of Sunnyvale is located in the heart of Silicon Valley. The economy is currently recovering, and 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. “The Woods” industrial area should 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. Residential development of the site would be isolated within an inhospitable industrial environment.

Reviewed by:

Trudi Ryan, Planning Officer

Prepared by: Ryan Kuchenig, Assistant Planner

Reviewed by:

Robert Paternoster, Community Development Director

Approved by:

Amy Chan, City Manager

Attachments