That the City Council:
APPROVE THE FIRST READING OF ORDINANCE NO. _____ ENTITLED:  AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA HABRA APPROVING PLANNED UNIT DEVELOPMENT PRECISE PLAN 20-01 FOR THE CONSTRUCTION OF A THREE-UNIT RESIDENTIAL CONDOMINIUM COMPLEX AT 508 SOUTH WALNUT STREET, MAKING THE APPROPRIATE FINDINGS, AS PER THE APPROVED PLANS AND SUBJECT TO CONDITIONS.

CEQA
This project was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be Categorically Exempt pursuant to Section 15303(b), Class 3: “New Construction or Conversion of Small Structures” of the CEQA Guidelines. The project consists of the construction of three residential units thereby not exceeding the maximum of six units permitted under the categorical exemption.

The subject property is located on the east side of Walnut Street to the north of Coyote Creek flood control channel (see Vicinity Map).  The current General Plan land use designation for the site is Residential Multi-Family 1.  The property is zoned Multiple Family Dwelling (R-4) with a Planned Unit Development (PUD) Overlay which is consistent with the General Plan.
 
The Applicant is proposing to construct a three-story, three-unit residential condominium complex on a 9,159-square foot parcel (see Project Plans).  The units will range in size from 2,859-square feet to 3,150-square feet, including garage space.  Units 1 and 2 will be two-bedroom units, while Unit 3 will have three bedrooms.  The floor plans for the units vary, however, they generally include a living room, a kitchen, a media room, a laundry room, and multiple-bathrooms.  Each unit will have a two-car garage at a minimum.
 
The property will be served by a common driveway from Walnut Street along the north side of the lot. Private open space will be provided along the south and east sides of the property.  Common open space will be placed at the northeast corner of the lot and the area improved with a covered patio area and a built-in barbeque.  Guest parking will be placed along the north side of the property.
The architectural design of the three-unit building utilizes a mix of contemporary architectural elements including stucco exterior, decorative light fixtures, faux shutters, decorative attic vents, friezes, and stacked-stone wainscot (see Renderings).  The elevations also include window and door treatments/moldings to enhance their visual appearance.  The front of Unit 1 has a covered porch, which engages Walnut Street.  Lastly, decorative stamped and colored concrete is proposed in the driveway within the front setback to provide visual relief when viewed from the street.
 
The building is arranged linearly along the southern property line.  The lot, which is an irregular shape, is 83.9-feet wide along Walnut Street, but narrows to 56.6-feet wide on the east side. The building has been stepped back to follow the slanted southern property line which helps to break up the massing as well as provide visual interest when viewed from the side.  The building also utilizes pop-outs, cross-gables, and steps down in various places which also breaks up the massing.  Small portions of the third floor encroach into the ten-foot side yard setback.

The Applicant is requesting approval of the design of the improvements proposed for the site.  As required by Chapter 18.52 of the La Habra Municipal Code (LHMC), Planning Commission and City Council approval is required for a Planned Unit Development (PUD) Precise Plan.  

The PUD zone overlay incentivizes development of properties by allowing some flexibility of design standards that are called out in the underlying zone.  Normally, properties without PUD overlays are restricted to the underlying zoning standards which do not allow deviations.  However, in this case the PUD overlay allows flexibility for regulations (for example setbacks and building height). The flexibility in regulations allows applicants to present a higher quality design, use better exterior finishes, or provide additional amenities.  The Applicant has requested a deviation on a portion of the side yard setback in exchange for high quality decorative exterior features, which is further described below.

Pursuant to R-4 development standards, the front of the building is required to maintain a 15-foot front setback.   As proposed, a 5-foot wide covered front patio is shown within the front setback facing Walnut Street.  This patio cover, which provides no usable floor area, breaks up the massing of the building and achieves a design goal whereby the front unit engages the street.

Secondly, the R-4 standards require that the third story of a building maintain a 10-foot side setback.   In this case, the side setback along the south property line ranges in width from five feet to twelve feet.  However, a small portion of the building located in the middle encroaches into this space.   To indent portions of the third floor to meet the 10-foot setback requirement would detract from the high-quality design of the structure and the stepping of the building facade meets the intent of the additional setback by breaking up the long plane of the building.

The “stepped back” side setback is due to the odd shape of the lot whereby it narrows at the eastern end of the parcel.  Also, the existence of the 15-foot wide access easement along the Orange County flood control channel provides additional offset whereby the structure won’t loom over any adjacent structures.

In exchange for these design accommodations, the Applicant is proposing a high-quality architectural design that helps to upgrade the look of the neighborhood.   The building's exterior will utilize decorative features such as stacked stone wainscot, decorative light fixtures and vents, friezes, and window mullions.  While the R-4 zone doesn’t have specific design standards, the Applicant has provided details that exceed expectations for a project of this size.

In order for the City Council to approve the Precise Plan, the following findings must all be made:

1.  That the location, design and proposed uses are compatible with the character of existing development in the vicinity.

The proposed site layout has taken into consideration the surrounding improvements and minimizes impacts to the proposed residences.  This is done by setting the units along the southern property line away from the northern property boundary to provide separation between any future residential building(s) on the adjacent property.  Also, masonry walls will buffer the site from the adjacent properties.
 
The project has been designed to blend in with the adjacent neighborhood.  For instance, the western (front) unit will face onto Walnut Street, similar to the residences to the north.  The project architectural design is complementary to the multiple-family residential project located to the south-west and the proposed building is similar in size and scale.  Therefore, the construction of a condominium complex will be compatible with the surrounding improvements and character of the neighborhood.

2.  That the plan will produce, internally, an environment of stable and desirable character, and will not tend to cause any traffic congestion on surrounding or access streets.

The Environmental Impact Report prepared in 2014 for the update to the City’s General Plan reviewed traffic impacts for existing and proposed land use designations citywide.  The study concluded that the existing street system had capacity to service projects that are built to or below the approved densities.  The approved density for the site is up to 24 units to the acre and the proposed project is being built to 14.3 units to the acre.  Therefore, no adverse impacts are anticipated.

3.  That all required applications for the proposed use have been processed, including any Conditional Use Permit applications.

The Applicant has filed all the required applications for this proposed project.  The request includes a Tentative Parcel Map for condominium purposes.  Actions for this project are being processed concurrently with this Planned Unit Development Precise Plan.

4.  That the standards of development applicable to the Planned Unit Development are clearly designated in the proposed Planned Unit Development ordinance or plans approved thereunder and/or supplementary text material.

Chapter 18.52 of the LHMC (“Planned Unit Development Overlay Zone”) does not provide specific development standards; however, it provides flexibility by the Planning Commission or City Council from strict enforcement of the underlying zoning designation for the purpose of approving a development that is in harmony with the surrounding neighborhood.  Each of the proposed design standards are clearly depicted on the plans (see Project Plans, Attachment 3) which will become an attachment to the Ordinance.
 
Per the R-4 development standards, the front of the building is required to maintain a 15-foot front setback.   As proposed, a 5-foot wide covered front patio is shown within the front setback, facing Walnut Street.  This patio cover, which provides no usable floor area, breaks up the massing of the building and achieves a design goal whereby the front unit engages the street. 
 
Secondly, the R-4 standards require that the third story of buildings maintain a 10-foot side setback.   In this case, the side setback along the south property line ranges in width from five-feet to 12-feet.  However, only small portions of the building located in the middle encroach into this space.  To indent portions of the third floor to meet the 10-foot setback requirement would detract from the high-quality design of the structure.  Additionally, the stepping of the building setbacks meets the intent of the code by breaking up the massing of the building.
 
Section 18.52.070 of the LHMC allows for modification of development standards.  In this case, the aforementioned deviations can be supported.

5.  That the proposed development will be well integrated into its setting.

The proposed building design and layout has taken into consideration the surrounding improvements.  There are other apartments and condominium projects adjacent to and near the subject site that are improved with two-story and three-story structures.  While the proposed project will be taller than the single-family residential buildings to the southeast, the Applicant will construct a 6-foot tall wall to provide a buffer.  Additionally, the drainage channel between the project and the aforementioned residences provides a wide separation of 70-feet or more.  Overall, the project is compatible with the neighborhood regarding building height, architecture, and density.  Therefore, the proposed project will be well integrated into its setting.

6.  That provision is made for both public and private open space, at least equivalent to that required in the primary zone.

Chapter 18.26 of the LHMC requires the development to provide a total of 1,000-square feet of usable yard area that includes 30% of the units having private open space (patio or balcony) and a minimum common open space of 400-square feet.  The Applicant will provide a total of 1,230-square feet of usable yard area that includes 66% of the units having private open space and common open space totaling 467-square feet.  Pursuant to the Quimby Act, the Applicant will be required to pay park fees, which is estimated to be $31,270 and will go towards public park development elsewhere in the City.

7.  That suitable provision is made, where appropriate, for the protection and maintenance of private areas reserved for common use.

As specified above, the project will provide 467-square feet of common usable yard area that will be improved with a patio cover, barbeque, and a seating area.  The protection and maintenance of the area is made possible through the enforcement of Conditions, Covenants and Restrictions (CC&Rs), which is a condition of approval for the project.  Also, the conditions of approval for the PUD require the development of the project to be in substantial conformance with the final plans as approved by the Planning Commission and City Council.

8.  That the proposed development does not negatively impact the City’s ability to provide services over the short and long term to City residents because the projected cost of providing City services to the property outweighs the economic benefits of the project to the City.

An economic analysis was prepared for the project.  The analysis compared the existing undeveloped valuation of the land upon purchase in December 2018 and build-out of the whole site with the three-unit residential project.  The study concluded that the residential development would generate $10,550.76 in property tax annually, of which, $1,901.00 will go to the City.  The cost to the City to provide services to the site is estimated to be $670.00 per year, therefore the project will generate sufficient net annual property tax revenue to pay for anticipated City services at the site.
 
The construction of the three-unit residential project is estimated to generate one-time fees of approximately $70,575.  Additionally, the project would generate approximately $31,270 in park fees.

Staff analyzed response times regarding public safety and whether the site would be adequately served by utilities (water, trash, sewer, gas, and power) as well as parks.  The site is adequately served by the La Habra Police Department, the Los Angeles County Fire Department, the City of La Habra (water, trash, and sewer), and parks.  Therefore, it is not anticipated that the project would negatively impact the City’s ability to provide services to City residents.

9.  That the proposed project complies with all requirements of the California Environmental Quality Act.

This project was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be Categorically Exempt pursuant to Section 15303(b), Class 3: “New Construction or Conversion of Small Structures” of the CEQA Guidelines.  The project consists of the construction of three residential units thereby not exceeding the maximum of six units permitted under the categorical exemption.

10.  That there is reasonable assurance that the Applicant intends to and will be able to proceed with the execution of the project without undue delay.

The Applicant has indicated that they will submit construction drawings for building plan check immediately upon completion of the entitlement process.

11.  That there is substantial compliance with the spirit and intent of this title.

As noted above, the proposed project is in substantial compliance with all applicable standards of the underling R-4 “Multiple Family Dwelling” Zone and Planned Unit Development Overlay Zone as per the plans and supporting studies.

Code Compliance

	Required	Provided
Building Height	35 feet (Max.)	35 feet
Front Setback	15 feet	10 feet*
Side Setback (2nd story)	5 feet	5-16 feet
Side Setback (3rd story)	10 feet	5-12 feet**
Rear Setback (2nd story)	10 feet	10 feet
Density	3.21 units	3 units
Lot Coverage (maximum)	40%	32%
Minimum Unit Size (2 bedroom)	900 SF	2,699 SF
Minimum Unit Size (3 bedroom)	1,050 SF	3,150 SF
Usable Yard Area	1,000 SF	1,230 SF
Parking
Two bedroom units	5 spaces	5 spaces
Three bedroom units	3 spaces	3 spaces
Guest parking	1.5 spaces	2 spaces
TOTAL	9.5 spaces	10 spaces

* Section 18.52.070 permits modifications to underlying zoning standards.  In this case, the front porch for Unit 1 is within the 15-foot front setback.
** Section 18.52.070 permits modifications to underlying zoning standards.  In this case, portions of the 3rd story are within the 10-foot side setback, which ranges between 5 and 12-feet.

National Pollution Discharge Elimination System
The Applicant’s proposal has been reviewed pursuant to the requirements of the City’s National Pollutant Discharge Elimination System (NPDES) Municipal Permit, the Local Implementation Plan (LIP), and the Model Water Quality Management Plan (WQMP), Section 7.2.  Since the proposal will constitute the disturbance of more than 1,000-square feet of soil, a Non-Priority WQMP is required.  A Preliminary Non-Priority WQMP has been reviewed and approved. All work undertaken will be required to incorporate Best Management Practices (BMPs) as required by the WQMP.


REQUIRED FINDINGS:
Findings of Fact are required to be made before a Planned Unit Development Precise Plan can be granted.  The findings are provided in the attached ordinance along with conditions that staff has identified as being necessary to ensure that the proposed project will have no negative effects on the public welfare and compliance with all appropriate City codes and ordinances.  Since all the appropriate findings for the requested PUD can be made, it is recommended that the City Council approve Planned Unit Development Precise Plan 20-01 for the construction of a three-unit residential condominium complex at 508 South Walnut Street, subject to the findings and conditions in the attached ordinance (see Ordinance, Attachment 2).

The project proposal consisting of PUD 20-01 and Tentative Parcel Map 2019-178 was considered at the Planning Commission meeting of October 26, 2020.  During the public comment portion of the hearing, two residents spoke out in opposition to the plan.  One resident, Mr. Trinidad Santana (no address provided), commented that the project was too dense and that it should be reduced in scope to a single-family residence only.   Another resident, Ms. Bertha Valle, who resides at 500 West Fourth Avenue, commented that traffic on Walnut Street is already too heavy and that no units should be constructed due to traffic impacts.

During deliberation of the project, Commissioner Munoz stated that he believed the development of the subject site was the right scale for the neighborhood.  Commissioner Manley commented that the elevations were above and beyond what was expected for a project of this size.  Commissioner Powell stated that the project was a good improvement for the area.  The project was unanimously approved.  It should be noted that TPM 2019-178 was final at the Planning Commission.

An economic analysis was prepared for the proposed project.  The analysis compared the existing undeveloped valuation of the land upon purchase in December 2018 and build-out of the entire site with the proposed three-unit residential project.  Currently, the undeveloped property is valued at $206,766, which generates approximately $2,244 in total annual property tax, of which approximately $404 is paid to the City's General Fund. The study concluded that the residential development, upon completion, would be reassessed at approximately $1.055 million, which would generate approximately $10,551 in total property tax annually, of which approximately $1,901 would be paid to the City's General Fund, representing an increase in revenue of $1,497 per year.  After adjusting for an estimated $670 per year in new costs for the City to provide services to this development, the proposed project will generate approximately $827 in new net property tax revenue annually for the City. 

In addition, the construction of the three-unit residential project is estimated to generate one-time fees, payable to the City, in the amount of approximately $70,575 for services such as plan checks, inspections and building permits, as well as approximately $31,270 in park fees. The development is also projected to generate $28,608 in school fees payable to the local school district. 

The General Plan land use designation for the site is Residential Multi-Family 1 which allows for the development of residential uses at up to 24-units an acre.  The proposed project is designed at a density of 14.3 units / acre.  The project will provide new units that meet or exceed energy requirements contained within Title 24.  The construction of units will help to meet the State’s requirements for providing more residential housing units. 
 
The project is consistent with the designated land use designation of the General Plan and implements a number of the General Plan Policies including:  LU 1.2 Development Capacity, LU 2.1 Places to Live, LU 3.5 Complete and Livable Neighborhoods, LU 4.1 Development Compatibility, LU 5.2 Sustainable Building Practices, LU 5.3 Sustainable Sites and Land Development, LU 7.2 New Residential Development, LU 9.1 Character and Design,  H 1.4 Variety of Housing, H 1.5 Market and Non-Market Housing Production Needs, and CI 2.2 Building Scale.