Public hearing followed by discussion and possible action on any and all matters regarding Major General Plan Amendment Case No. 2019-0396 and Resolution No. 2111. A resolution of the Mayor and City Council of the City of San Luis amending the 2020 General Plan to change the land use designation of approximately 493 acres of land located on the southeast corner of County 24th Street and Avenue D. (Jose A. Guzman, Director of Planning & Zoning)  

A. Open public hearing
    1. Staff presentation
    2. Call to the Public on this item
B. Close public hearing
C. Action on Resolution No. 2111

This request for a Major General Plan amendment was submitted to the City of San Luis in June 2019 by Vianey R. Vega, P.E. from Vega & Vega Engineering, PLC, on behalf of David Loo, Eddie Loo and Elizabeth Carpenter, property owners/agents. The request is to amend the land use designation on 493 acres total by changing 447.8 acres from Business and Industrial to Neighborhood, 35.2 acres from Business to Industrial and 10 acres from Industrial to Business. The subject properties, Assessors Parcel No. 227-14-001, 227-14-002, 227-14-004, 227-14-005, 227-14-006, 227-14-007 and 227-14-008, are located on the east mesa of the City of San Luis.

LOCATION AND PARCEL INFORMATION:
The general location of the proposed amendment area is bounded by County 24th Street to the north, County 25th to the south, Avenue E to the west and Avenue D to the east. 

Parcel 1
Assessor's Parcel Number:  Portion of 227-14-001
Property Owner: David Loo
Acreage: 40 Acres
Current Land Use Designation: Business
Current Zoning: Light Industrial (L-I)
Proposed Zoning: Medium Density Residential (R1-6)

Proposed Land Use Designation: Business to Neighborhood 
Legal Description: Northeast Quarter (NE1/4) of the Northwest Quarter (NW1/4) of Section 14, Township 11 South, Range 24 West of the Gila and Salt River Base and Meridian, Yuma County, Arizona.

Parcel 2
Assessors Parcel Number:  227-14-002
Property Owner: Von Verde Development AZ LLC
Acreage: 160 Acres
Current Land Use Designation: Industrial
Current Zoning: Light Industrial (L-I)
Proposed Zoning: Medium Density Residential (R1-6), High-Density Residential (R-3) and Community Commercial (C-2)

Proposed Land Use Amendment: 10 acres from Industrial to Business 
Legal Description: The Northeast Quarter (NE1/4) of the Northeast Quarter (NE1/4) of the Northeast Quarter (NE1/4) of Section 14, Township 11 South, Range 14 West of the Gila and Salt River Base and meridian, Yuma, Arizona.

Proposed Land Use Amendment: 150 acres from Industrial to Neighborhood
Legal Description: The Northeast Quarter (NE1/4) of Section 14, Township 11 South, Range 24 West of the Gila and Salt River Base and Meridian, Yuma, Arizona.  Except the Northeast Quarter (NE1/4) of the Northeast Quarter (NE1/4) of the Northeast Quarter (NE1/4) thereof.

Parcel 3
Assessors Parcel Number:  Portion of 227-14-007
Property Owner: Elizabeth Carpenter
Acreage: 20 Acres
Current Land Use Designation: Business
Current Zoning: Light Industrial (L-I)
Proposed Zoning: Medium Density Residential (R1-6)

Proposed Land Use Amendment: 20 acres from Business to Neighborhood
Legal Description: The East half (E1/2) of the Northwest Quarter (NW1/4) of the Southwest Quarter (SW1/4) of Section 14, Township 11 South, Range 24 West of the Gila and Salt River Base and Meridian, Yuma, Arizona.

Parcel 4
Assessors Parcel Number:  Portion of 227-14-004
Property Owner: Moy Farming Company LLC
Acreage: 153 Acres
Current Land Use Designation: Industrial and Business
Current Zoning: Light Industrial (L-I)
Proposed Zoning: Medium Density Residential (R1-6), High-Density Residential (R-3) and Light Industrial (L-I)
Proposed Land Use Amendment: 16.5 acres from Business to Neighborhood
Legal Description: The North 545’ of the Southeast Quarter (SE1/4) of the Southwest Quarter (SW1/4) of Section 14, Township 11 South, Range 24 West of the Gila and Salt River Base and Meridian, Yuma, Arizona.

Proposed Land Use Amendment: 23.5 acres from Business to Industrial
Legal Description: The South 775’ of the Southeast Quarter (SE1/4) of the Southwest Quarter (SW1/4) of Section 14, Township 11 South, Range 24 West of the Gila and Salt River Base and Meridian, Yuma, Arizona.

Proposed Land Use Amendment: 113 acres from Industrial to Neighborhood
Legal Description: The Southeast Quarter (SE1/4) of Section 14, Township 11 South, Range 24 West of the Gila and Salt River Base and Meridian, Yuma, Arizona.  Except for the South 775’ thereof.

Parcel 5
Assessors Parcel Number: Portion of 227-14-005
Property Owner: DSA Investment Co. AZ LLC
Acreage:  20 Acres
Current Land Use Designation: Business
Current Zoning: Light Industrial (L-I)
Proposed Zoning: Medium Density Residential (R1-6) and Light Industrial (L-1)

Proposed Land Use Amendment: 8.3 acres from Business to Neighborhood
Legal Description: The North 545’ of the East Half (E1/2) of the Southwest Quarter (SW1/4) of the Southwest Quarter (SW1/4) of Section 14, Township 11 South, Range 24 West of the Gila and Salt River Base and Meridian, Yuma, Arizona.

Proposed Land Use Amendment: 11.7 acres from Business to Industrial
Legal Description: The South 775’ of the East Half (E1/2) of the Southwest Quarter (SW1/4) of the Southwest Quarter (SW1/4) of Section 14, Township 11 South, Range 24 West of the Gila and Salt River Base and Meridian, Yuma, Arizona.

Parcel 6
Assessors Parcel Number:  Portion of 227-14-008
Property Owner: Von Verde Development AZ LLC
Acreage:  60 Acres
Current Land Use Designation: Business
Current Zoning: Light Industrial (L-I)
Proposed Zoning: Medium Density Residential (R1-6) 

Proposed Land Use Amendment: 60 acres from Business to Neighborhood
Legal Description: The East Half (E1/2) of the Southwest Quarter (SW1/4) of the Northwest Quarter (NW1/4) and Southeast Quarter (SE1/4) of the Northwest Quarter (NW1/4) of Section 14, Township 11 South, Range 24 West of the Gila and Salt River Base and Meridian, Yuma, Arizona.

Parcel 7
Assessors Parcel Number:  227-14-006
Property Owner: Moy Farming Company, LLC
Acreage:  40 Acres
Current Land Use Designation: Business
Proposed Land Use Designation: Neighborhood
Current Zoning: Light Industrial (L-I)
Proposed Zoning: Medium Density Residential (R1-6) 

Proposed Land Use Amendment: 40 acres from Business to Neighborhood
Legal Description: Northeast Quarter (NE1/4) of the Southwest Quarter (SW1/4) of Section 14, Township 11 South, Range 24 West of the Gila and Salt River Base and Meridian, Yuma, Arizona.      

INTENT OF AMENDMENT:
The reason for the requested General Plan Amendment is to rezone the property to a combination of Medium Density Residential (R1-6), High-Density Residential (R-3), Community Commercial (C-2) and Light Industrial (L-I). The current General Plan designation does not allow for the proposed zoning districts. 

SURROUNDING PROPERTIES:
The property to the north is vacant and zoned as Community Commercial (C-2) and Light Industrial (L-I), property to the east is vacant and is zoned as Heavy Industrial (H-I), property to the west across Avenue E is Southwest Arizona Industrial Subdivision and property to the south is the Magrino Industrial Park and the Commercial Port and are zoned as Light Industrial (L-I).

LAND USE DESIGNATIONS:
The current General Plan land use designation for the 493 acres is a combination of Business and Industrial; 273 acres have a land use designation of Industrial and the other 220 acres have a designation of Business. The proposed amendment is to have 447.8 acres designated as Neighborhood, 35.2 acres designated as Industrial and 10 acres designated as Business. 

The Business designation is planned for areas suitable for higher intensity commercial, office, employment, and appropriate industrial uses. The permitted zoning districts within this land use designation are Neighborhood Commercial (C-1), Community Commercial (C-2), Light Industrial (L-I) and Heavy Industrial (H-I). 

The intent of the Industrial designation is to allow for a variety of industrial uses, including manufacturing facilities, assembly plants, warehouses, coolers, distribution centers, freight-based activities, transportation-related activities, and other employment generating activities. The permitted zoning districts within this land use designation are Light Industrial (L-I), Heavy Industrial (H-I) and Community Commercial (C-2) zoning district. This property is currently zoned as Light Industrial (L-I). 

The intent of the Neighborhood designation is to allow residential, neighborhood type commercial, community services/facilities, parks, open space, schools, and master-planned communities. The residential uses may include single-family detached units, single-family attached units, townhouses, condominiums, and apartments. The permitted zoning districts within this designation are Low and Medium Density Residential (R1-12, R1-8, R1-6), Medium-High Density Residential (R-2), High Density Residential (R-3), Neighborhood Commercial (C-1), Mixed Use (MU), Residential Planned Unit Development (R-PUD), Manufacture Home (MH), Recreation Vehicle (RV), and Open Space Conservation (OSC) zoning districts. 

APPLICATION PROCESS:
The City of San Luis' General Plan provides a shared vision of San Luis’ future for city decision-makers, residents and others working with the city. It includes 14 elements, that taken together, provide a blueprint for growth and development that will enhance the life of San Luis residents and businesses.  All parts of the General Plan are related and should be collectively applied.  For this reason, proposed amendments to the General Plan will be analyzed in a comprehensive manner.
     
Pursuant to A.R.S. §9-461.06 (G), a major amendment is defined as a “substantial alteration of the municipality’s land use mixture or balance as established in the municipality’s existing general plan land use element.”

Major Amendments to the General Plan are considered once each year pursuant to A.R.S. §9-461.06 (G). Major Amendment applications must be submitted within the same calendar year they are being considered at a single public hearing. A Major Amendment shall be approved by an affirmative vote of at least two-thirds of the members of the City Council.

CUMULATIVE EFFECT:
All amendments must be considered concurrently in order to evaluate their cumulative effect on the General Plan. This application is being reviewed as part of the annual cycle of general plan amendments along with two (2) other applications:

1. Major General Plan Amendment Case No. 2019-0394
2. Major General Plan Amendment Case No. 2019-0395
3. Major General Plan Amendment Case No. 2019-0396 (this case)

The three (3) applications should be reviewed for their cumulative land-use impacts because they are in the vicinity. Case No. 2019-0394 and 2019-0396 are located on the east side of Avenue E corridor. 

AGENCY REVIEW AND PUBLIC COMMENT: 
As required by State Statute (A.R.S. §9-461.06(D)), a notice of this proposal was sent to relevant government agencies for their review. The 60-day review period ended on September 9, 2019.

During this period, comments were received from the following agencies: 

• Arizona Department of Transportation (ADOT) Southwest District
• Marine Corps Air Station Yuma
• Somerton School District

The comment from ADOT received concerned requests for additional information (Traffic Impact Analysis), once future development proposal for the subject property is submitted. This application does not include specific improvement proposals and only concerns the land use of the parcel.

Notice of this proposal was also sent to all property owners within the notification area (17 letters). No public comments were received during the public comment period. 

CITIZEN REVIEW MEETING:
In accordance with State Statute (A.R.S. §9-462.03) and City Code (§152.040(C)), a Citizen Review meeting was held at San Luis City Hall on October 1, 2019, at 6:00 p.m.

The purpose of the Citizen Review meeting is to provide adjacent landowners and other potentially affected citizens an opportunity to ask questions and express any issues or concerns that they may have with the proposed amendment prior to the public hearing. There were no people from the public present.

PLANNING AND ZONING COMMISSION:
Arizona Revised Statutes (A.R.S. §9-461.06(E)) requires that cities over 25,000 in population must hold two (2) public hearings for any Major General Plan Amendment. The two (2) or more public hearings must be held in two (2) different locations on two (2) different dates. The first Public Hearing for this request was held on October 8, 2019, at the San Luis Cesar Chavez Cultural Center. The second Public Hearing was held on October 15, 2019, at the San Luis Council Chambers. The minutes from both meetings are attached. The Commission recommended DENIAL of this request. 

APPROVAL CRITERIA:
As per San Luis City Code §152.047(E), in determining whether the proposed General Plan Amendment shall be approved, the Planning and Zoning Commission and City Council shall assure that the proposed amendment meets all of the following criteria:

1. The development pattern contained in the existing San Luis General Plan - Land Use Plan, does not adequately provide appropriate optional sites for the use or change proposed in the amendment. 

2. The amendment constitutes an overall improvement to the San Luis General Plan and is not solely for the good or benefit of a particular landowner or owners at a particular point in time. 

3. The amendment will not adversely impact the community as a whole or a portion of the community by:  4. The amendment is consistent with the General Plan’s overall intent, vision, goals, and objectives as well as being compliant with other adopted plans, codes, and ordinances. 

GENERAL PLAN ANALYSIS:
The City of San Luis' General Plan 2020 sets forth the city’s Land Use doctrine. The General Plan guides and directs all city land-use decisions. Furthermore, State Law requires that any project must be consistent with the General Plan.

As per San Luis City Code §152.047(E), in determining whether the proposed General Plan Amendment shall be approved, the Planning and Zoning Commission and City Council shall assure that the proposed amendment meets all of the following criteria:

1. The development pattern contained in the existing San Luis General Plan - Land Use Plan does not adequately provide appropriate optional sites for the use or change proposed in the amendment. 

Analysis:
The San Luis General Plan does provide appropriate optional sites for the use proposed in the amendment. The Neighborhood areas within the Planning Area are located both north and south of Cesar Chavez Boulevard, between U.S. Highway 95 and Avenue E, adjacent to the US 95 corridor and to the west of the Business area along Avenue B. 

The San Luis Land Use Plan provides a framework to accommodate future growth in a well-managed and sustainable way. The Land Use Element designates the proposed general distribution, location and extent of such land uses as housing, business, industry, agriculture, recreation, education, public buildings and grounds, open space, and such other categories of public and private uses of land as may be appropriate to the City of San Luis.

The Growth Area Element, states that proactively directing growth is essential to efficiency using available infrastructure and promoting a sustainable community. This element identifies areas that are particularly suitable for infrastructure expansion, multi-modal transportation and improvements designed to support planned concentration of a variety of land uses such as commerce, industry, and residential neighborhoods.

Various locations described below are identified as Growth Areas due to their location and the existence of all or some of the infrastructure necessary to support new construction.

Residential Growth Areas:
Two areas are specifically identified for residential growth and expansion:

• County 24th Street - Additional single-family neighborhood development is planned for privately-owned lands north of County 24th Street, east of 10th Avenue and west of Avenue E 1/2. 
• North San Luis - The area north of Cesar Chavez Boulevard, south of County 22nd Street and between 10th Avenue and Avenue F is identified for neighborhood and supporting retail development.

Commercial Growth Areas:
San Luis II Commercial Port of Entry North 

• This high priority growth area is critically important to commercial and service expansion in support of the San Luis II Commercial Port of Entry.  This modern port of entry opened in November 2010.  Private land ownership and access limitations along Avenue E create opportunities for development along the Avenue  E Corridor. 

Conclusion: 
These two (2) overarching elements of the General Plan specifically prohibit the conversion of employment lands to residential uses unless the proposed site is in a Residential Growth Area.

There are two (2) growth areas identified for residential development. A stable political environment, municipal water service, minimal slope, and good soils contribute to the conduciveness of the area for new development. A variety of land disposition techniques, such as land swaps, purchase or lease, may be utilized in order to allow use of Bureau of Land Management (BLM) and Bureau of Reclamation (BOR) lands. Lands owned by the State of Arizona are available for purchase or lease through an application and auction process.

The area along Avenue E and the San Luis II Commercial Port of Entry is the only Growth Area identified for industrial development. This area, east of Avenue E, has been historically reserved for industrial uses and is the only growth area designated for industrial development. Moreover, this area is in one of the specific areas that the General Plan identifies for the preservation of employment land. Preservation of these lands will allow a future industrial user to successfully operate a larger employment business on this site. In order to allow the necessary revenue-generating businesses to locate in San Luis, there needs to be ample space for these businesses, away from residential uses, that can hinder the ability of these sites to operate at their full capacity. With limited locations for potential industrial users to locate to, the need to preserve the industrial space that exists is the key priority to making other General Plan goals and policies come to fruition.

2. The amendment constitutes an overall improvement to the San Luis General Plan and is not solely for the good or benefit of a particular landowner, or owners at a particular point in time. 

Analysis: 
This general plan amendment not only converts Industrial lands, but it places a burden on the remaining land adjacent to the site, and it will place constraints on future operational practices on this area for any industrial user. Permitting residential development will start a chain reaction of land conversions in this overall industrial area, eliminating the much-needed industrial-designated land. This is a large area, 447.5 acres in size, that can be a prime location for future industrial users, and as such, should be maintained as an industrial site. 

Conclusion:
The question presented is whether or not the amendment is solely for the benefit of the owner at this point in time. Typically, General Plan Amendments benefit the owner either by enhanced development, potential, or quicker absorption possibilities for its property. In this amendment, the owner is benefited by having a land use designation that is more economically advantageous to the owner.

However, the approval of the proposed general plan amendment would create incompatible land uses in industrial zones and would disadvantage the City of San Luis as a place for industrial activities. Therefore, the amendment does not constitute an overall improvement to the General Plan. 

3. The amendment will not adversely impact the community as a whole or a portion of the community by:  4. The amendment is consistent with the General Plan’s overall intent, vision, goals and objectives as well as being compliant with other adopted plans, codes, and ordinances.

Analysis:
Based on the analysis described above, the requested General Plan Amendment is inconsistent with the city’s General Plan. The General Plan, functioning as the city’s land use doctrine, designates the site as industrial. This classification encompasses a variety of light and heavy industrial uses such as manufacturing, packaging, processing, warehousing, distribution, and ancillary support uses. The requested general plan amendment would allow residential development within an area planned for industrial uses, that are inconsistent with the intent of the General Plan. 

Conclusion:
The General Plan has numerous goals and objectives that prohibit and discourage the encroachment of uses that are not compatible with industrial uses. The General Plan designates growth areas for residential development within the planning area. The proposed amendment area was originally designed and agreed on to be designated as an industrial area. Accordingly, it is important to retain these areas for manufacturing, packaging, processing, warehousing and distribution, and in effect maintaining areas for job creation by denying the requested General Plan amendment.

Additionally, staff has determined that the application is inconsistent with the following goals and objectives:

Land Use Element
Goal 2. Reserve areas for employment uses including manufacturing and industrial parks.
Goal 2. Objective B. Focus on areas with convenient access to San Luis II Commercial Port of Entry.
Goal 4.Objective C. Provide appropriate land uses in the vicinity of San Luis II Commercial Port of Entry. 
Goal 5. Promote land use compatibility. 

Growth Area Element
Goal 1. Identify areas for commercial, industrial and residential growth within and adjacent to the city.
Goal 3. Assure compatibility between new development and existing neighborhoods.

Circulation Element
Goal 2. Match land-use intensities with planned transportation system capacities.

Housing Element
Goal 2. Objective A. Guide residential development within the residentially designated areas on the Future Land Use Plan.
Based on the analysis described above, the requested General Plan Amendment is inconsistent with the Goals and Objectives of the City of San Luis' General Plan, therefore does not meet the approval criteria.

RELEVANT STUDIES, PLANS, & DOCUMENTS:
The following studies, plans, and documents were reviewed by staff so that any pertinent recommendations could be taken into consideration in this analysis. All documents are consistent with the proposed use of Avenue E as a commercial truck route and having the appropriate land use designation of industrial along said avenue: 

• City of San Luis 2020 General Plan
• City of San Luis Traffic Circulation Study
• City of San Luis Small Area Transportation Study
• San Luis II Land POE 
• YMPO Regional Transportation Plan 2018-2041
• Yuma Regional Transportation Coordination Plan
• Binational Transportation Study
• Yuma County Comprehensive Plan
• City of Yuma General Plan
• City of Yuma Transportation Master Plan
• City of Somerton General Plan
• City of Somerton Small Area Transportation Study 
• City of Somerton Transportation Plan Update
• Programa de Desarollo Urbano del Centro de Poblacion, San Luis Rio Colorado, Sonora
• Arizona-Sonora Border Master Plan
• Arizona Trade Corridor Study
• Arizona Multi-modal Freight Analysis Study
• Arizona State Freight Plan
• ADOT, Yuma ASH Environmental Assessment

GENERAL PLAN UPDATE:
The City of San Luis is working on the decennial General Plan Update alongside Matrix Design Group. Attached to this report is a letter from Matrix Design Group recommending to Council to not approve any Major General Plan Amendments until the adoption of the General Plan Update because any changes can alter the overall land use mix within the Municipal Planning Area and thereby affect future city services and resources. 

STAFF RECOMMENDATION:
Staff recommends DENIAL of Major General Plan Amendment Case No. 2019-0396, a request by Vega & Vega Engineering, PLC, for a Major General Plan Amendment on 493 acres of land located at the southwest corner of County 24th Street and Avenue D.