MAY 19, 2020 REGULAR CITY COUNCIL MEETING
On May 19, 2020, the Brea City Council considered the proposed Mercury Lane workforce housing project. At the public hearing, the City Council provided comments and/or direction to City staff on the proposed project, which has resulted in changes to the Draft Resolution, Draft Ordinance and Conditions of Approval, and Draft Development Agreement. Updated versions of all documents have been forwarded to the Council for additional consideration at the May 21, 2020 City Council special meeting (Attachments A-C).
MAY 12, 2020 SPECIAL CITY COUNCIL MEETING
On May 12, 2020, the Brea City Council considered the proposed Mercury Lane workforce housing project. At the public hearing, the City Council provided comments and/or direction to City staff on the proposed project, which resulted in changes to the Draft Ordinance and Conditions of Approval as well as the Draft Development Agreement. The public hearing was continued to the May 19, 2020 regular meeting of the City Council.
PLANNING COMMISSION RECOMMENDATION
On April 28, 2020, the Planning Commission reviewed the Mercury Residential development proposal (“Project”) which includes the following requests:
- A Zone Change from Commercial Industrial to Planned Community;
- A Planned Community Master Plan including site-specific development standards, property management, and implementation requirements for a high-density, workforce housing project in an industrial zone consisting of 114 studio, one bedroom and two-bedroom rental units located on a 1.01-acre parcel;
- A Development Agreement granting vested rights and requiring certain community benefits; and
- A Final Environmental Impact Report (“EIR”) inclusive of all environmental analysis, mitigation measures and findings to address environmental impacts.
The Planning Commission recommended (5-0) the City Council approve the Project with modifications and recommendations contained in the Conditions of Approval within the Draft Ordinance. |
BACKGROUND
On January 15, 2019, the City Council initiated Zone Change No. ZC 19-01 in response to a request by the Applicant to rezone the subject property from Commercial Industrial (C-M) to Planned Community (PC). The Applicant then submitted requests for consideration of Planned Community Master Plan No. PCMP 19-01 (“Master Plan”), and Development Agreement No. 19-01 (“Development Agreement”) for development of a 5-story building with 114 residential units. An EIR for the Project pursuant to the requirements of the California Environmental Quality Act (“CEQA”) was prepared for this request.
Summary of Project
The subject is located on the southeast corner of Mercury Lane and Berry Street. The property has a General Plan designation of Light Industrial and is zoned C-M, Commercial Industrial. The property is currently vacant, adjacent to the Downtown and is surrounded by industrial uses.
The Project proposes to change the zoning to allow a Planned Community designation for a high-density, workhouse housing residential project in an industrial zone. The residential complex would include the construction of a 5-story building, 68-feet in height on a 1.01-acre parcel. The Applicant has a vision for a private approach to affordable housing. The Project proposes to provide 114 multi-family residential apartments. The units range in size from studios (452-596 square feet), one bedrooms (651-675 square feet) and 2 bedrooms (1,111 square feet). The Project identifies these apartments as “workforce” units due to their size and proximity to major employment centers including: Mercury Insurance, Downtown Brea businesses, and adjacent commercial and industrial uses. The Applicant has also incorporated into the Project a plan to offer and maintain affordable rents based on the design, location, size and management of the complex. More specific information about the Project can be found in the staff reports prepared for the Planning Commission and the Master Plan.
Planning Commission Review
On January 28, 2020, the Planning Commission held a public hearing to consider the Project and the Final EIR. The Planning Commission continued the hearing until February 25, 2020.
On February 25, 2020, the Planning Commission reviewed additional information provided by Staff, received additional public testimony and closed the public hearing. The Planning Commission directed Staff prepare a draft Resolution with Conditions of Approval to address several remaining issues/concerns. The Planning Commission continued the item to the March 23, 2020 regularly scheduled meeting.
The March 23, 2020 Planning Commission meeting was canceled due to the current COVID-19 emergency. The City re-noticed the Mercury project for the April 28, 2020 Planning Commission meeting. At this meeting, the Commission considered additional information presented by Staff, the Applicant, and during public testimony. The public hearing was closed and the Commission deliberated and provided their recommendation as outlined above.
DISCUSSION
Zone Change
The subject property is currently zoned Commercial Industrial, which does not allow for residential uses. The applicant has requested the zoning designation be changed to Planned Community, which would allow for development consistent with an approved Planned Community Master Plan. Pursuant to Section 20.424.020(A) of the City Code, the following findings must be made before the approval of a Zone Change:
- The Zone Change is in conformity with the General Plan;
- The subject property is suitable for the development in the Planned Community Zone under the proposed Planned Community Master Plan, in terms of access, size of parcel, relationship to similar or related uses and other considerations; and
- The proposed change of zone is not detrimental to the use of land in any adjacent zone.
The draft ordinance, if adopted, would approve the proposed Zone Change based on these findings and facts about the Project in the record. Support for the findings are found in the draft Ordinance and within the associated staff reports.
Planned Community Master Plan
The proposed Planned Community Master Plan sets forth the site-specific development standards, property management, and implementation requirements for the proposed high-density workforce housing project consisting of 114 studio, one bedroom, and two-bedroom rental units on the subject 1.01-acre parcel.
Pursuant to Section 20.272.030(G)(6) of the City Code, the following findings must be made before approval of the Planned Community Master Plan:
- The Master Plan is consistent with the General Plan;
- The Master Plan is consistent with the Brea Envisions Community Strategic Plan;
- The Master Plan would provide for an innovative development in an area of the City that presents unique planning challenges due to considerations such as geography, topography, and changing patterns of development not otherwise addressed by the city's existing zoning rules;
- The properties included in the Master Plan are suitable for the proposed uses, in terms of access, size, their relationship to adjacent properties and similar or related uses, and other relevant considerations; and
- The Master Plan is in the best interest of the City as a whole.
The draft Ordinance, if adopted, would approve the proposed Master Plan based on these findings and facts about the Project in the record. Support for the findings are found in the draft ordinance and within the associated staff reports.
Development Agreement
Section 20.272.030(G)(3) of the City Code requires a Development Agreement for every Planned Community Master Plan to provide the community and applicants the assurance that the proposed development, and its associated community benefits, will be realized by granting the applicant vested rights to develop in accordance with the approved plan.
The following outlines the community benefits that are currently part of the proposed Development Agreement:
a. Revitalization and use of a vacant site consistent with state, regional, and local long-term goals to provide additional housing opportunities and affordable housing.
- Affordable Housing: Eleven (11) units would be reserved at or below low-income thresholds (as defined by state law) for a minimum of 55 years.
- Workforce Housing: At least eighty (80) of the units will have rents between $1,200 to $1,695 with the ability to increase rents up to a maximum of three percent (3%) annually for a period of forty (40) years with the following rental categories:
- Six (6) units would have rents of not more than $1,295
- Six (6) units would have rents of not more than $1,395
- Six (6) units would have rents of not more than $1,495
- Six (6) units would have rents not more than $1,595
- Fifty-six (56) units would have rents not more than $1,695
b. Contribution of video surveillance hardware and software to serve traffic circulation and public safety goals for the Project area ($10,000).
c. Contribution towards future improvements to Imperial Highway ($10,000), which would be a fair share contribution to mitigation measures that are deemed infeasible in the Final EIR because of Caltrans’ jurisdiction over Imperial Highway.
d. Contributions towards sidewalk and bike lane improvements on Mercury Lane ($180,000).
e. Contribution towards the use and maintenance costs of the City’s West Downtown Parking Garage. The applicant is proposing that the City allow the Project’s tenants to utilize the West Downtown parking garage for guest parking subject to payment of $25 per space, per month towards such use. Additionally, the applicant is proposing that the City use those annual payments on maintenance, repair, and upkeep of the parking garage.
f. Alternative transportation options in the City through creation of a car-share and bike-share program to serve the Project and provide local shuttle or similar system.
ENVIRONMENTAL ASSESSMENT
The Final EIR for the Project complies with all of the requirements of CEQA and addresses all of the Project’s significant environmental impacts. It also includes a Findings of Fact, Statement of Overriding Consideration and Mitigation Monitoring & Reporting Program. |