ITEM NO. 12
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CITY COUNCIL STAFF REPORT |
| TO: |
Honorable Mayor and Members of the City Council |
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| FROM: |
Arron Brown, City Manager |
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| BY: |
Jim Morrissey, City Planner |
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| DATE: |
11/12/2025 |
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| SUBJECT: | Introduction and First Reading of Ordinance No. 266 - An Ordinance of the City Council of the City of Canyon Lake, California, Amending Title 9 (Planning and Zoning), Chapter 9.30 (Mixed Use Zones), Section 9.30.030 (Zones Established) of the Canyon Lake Municipal Code
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Recommendation:
(1) Open the public hearing and take public testimony; (2) find the proposed Zoning Ordinance amendment is exempt from the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3) of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and (3) waive full reading and introduce by title only Ordinance No. 266 - An Ordinance of the City Council of the City of Canyon Lake, California, Amending Title 9 (Planning and Zoning), Chapter 9.30 (Mixed Use Zones), Section 9.30.030 (Zones Established) of the Canyon Lake Municipal Code.
Background/Analysis:
The City Council adopted the Mixed Use Zone in March 2020, as a two-fold effort to achieve the following goals:
- Provide the City a method of implementing the General Plan Land Use Map designation of Mixed Use, thereby allowing both residential and commercial uses.
- Provide a mechanism to adopt a Specific Plan that covers the Towne Center and achieve both an upgraded design of the Center and meet State mandated housing requirements through the establishment of unique development criteria.
The Mixed Use Zone was subsequently amended in April 12, 2023, to specifically incorporate the uses permitted in the C-1 Zone, which was the zoning that previously covered the Towne Center.
Discussion
The Towne Center Specific Plan (TCSP) provides the details for the development of the Center as a mixed-use project with multi-story residential and ground floor commercial in specific areas of the property. The TCSP references certain components of the Housing Element, since the development of residential uses on the property is intended to meet the Regional Housing Needs Allocation (RHNA) housing units established by the State Department of Housing and Community Development.
The State Department of Housing and Community Development has indicated, as part of the State’s Certification of the Housing Element, an amendment to the Mixed Use needs to occur to ensure the types of housing developed in the Towne Center will meet the parameters contained in the Housing Element. State HCD has reviewed the Ordinance and requested certain modifications, which are listed below:
Discussion
The Towne Center Specific Plan (TCSP) provides the details for the development of the Center as a mixed-use project with multi-story residential and ground floor commercial in specific areas of the property. The TCSP references certain components of the Housing Element, since the development of residential uses on the property is intended to meet the Regional Housing Needs Allocation (RHNA) housing units established by the State Department of Housing and Community Development.
The State Department of Housing and Community Development has indicated, as part of the State’s Certification of the Housing Element, an amendment to the Mixed Use needs to occur to ensure the types of housing developed in the Towne Center will meet the parameters contained in the Housing Element. State HCD has reviewed the Ordinance and requested certain modifications, which are listed below:
- Development can occur “By Right”. This refers to the method of evaluating projects as Ministerial or Non-Discretionary, in which no public hearing is required, the conditions of approval are standard measures typically applied to projects, no environmental action is required, and Staff could approve the Project, if it is consistent with the adopted Ordinance and Specific Plan. An example of a Discretionary Project would be a Conditional Use Permit in which the City has the ability to establish special conditions related to a particular use at a special geographic location. Note: A grant was obtained from State HCD to financially assist the City in the preparation of the TCSP and the required environmental documentation with the intention of reducing the future development review processing time and cost, thereby expediting project construction, including the elimination or reduction in discretionary review.
- Minimum Density Standards. HCD has requested each of the four residential development sites achieve a minimum density of 20 units per acre. The original intent of the TCSP was to have an overall density of over 20 units per acre, although the density of each individual site would vary. It is the philosophy of the State that this level of density will increase the potential for achieving more affordable housing. This level of density is achievable within the current Plan design.
- Minimum Development Criteria. At least 50 percent of the total floor area of the mixed-use buildings shall be residential if intended to accommodate all of the very low- and low-income housing needs. The ordinance change would also permit 100 percent residential uses. Please be aware the adopted Towne Center Specific Plan currently has three buildings with a mixture of residential and ground floor commercial uses, specifically designed for the purpose of achieving the required number of units allotted to the City by the State. Should a design change occur in which one or more of these buildings no longer retains ground floor commercial uses, a specific plan amendment may be required depending upon the extent of the change.
In addition to the changes listed above, a reference to the Village Overlay area is to be eliminated, since it was included in the original Mixed Use Ordinance as part of the last Housing Element Cycle (5th Cycle). It is no longer necessary and would conflict with the purpose of the subsequently adopted Towne Center Specific Plan and the 6th Cycle Housing Element.
The changes listed above are intended to reflect the programs listed in the Housing Element, which is scheduled to be approved by the City Council as part of a separate action. The standard 10-day public hearing notice is applicable, since no land use changes are part of the ordinance amendment. If land use changes were part of the amendment, 20-day notice would be required.
The changes listed above are intended to reflect the programs listed in the Housing Element, which is scheduled to be approved by the City Council as part of a separate action. The standard 10-day public hearing notice is applicable, since no land use changes are part of the ordinance amendment. If land use changes were part of the amendment, 20-day notice would be required.
Subsequent City Council Action
City Staff believes the changes proposed as part of the Mixed Use Zone amendment should also be incorporated into the Towne Center Specific Plan (TCSP). Typically, an adopted Specific Plan is the primary focus of any development review process. Amending the TCSP with similar language will ensure both documents reflect the same information and ensure a consistent level of review. However, amending the TCSP requires an extended process under the Government Code. As such, changes to the TCSP will occur later to comply with this requirement.
City Staff believes the changes proposed as part of the Mixed Use Zone amendment should also be incorporated into the Towne Center Specific Plan (TCSP). Typically, an adopted Specific Plan is the primary focus of any development review process. Amending the TCSP with similar language will ensure both documents reflect the same information and ensure a consistent level of review. However, amending the TCSP requires an extended process under the Government Code. As such, changes to the TCSP will occur later to comply with this requirement.
- Fiscal Impact Yes/No:
- No