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101-City Council Staff Report (Revised2).pdf COMMUNITY DEVELOPMENT DEPARTMENT City Hall 10 10300 Torre Avenue • Cupertino, CA 95014-3255 Telephone: (408) 777-3308 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: June 4, 2012 Applications for Biltmore Adjacency apartments and commercial building project, located at approximately the southwest corner of Blaney Ave and Stevens Creek Blvd (excludes the Village Falafel site). Subject A. The Planning Commission recommends that the City Council approve applications (EA- 2011-16, DP-2011-06, ASA-2011-20, TR-2012-18) for a mitigated negative declaration, development permit, architectural site approval, and tree removal permit for the Stevens Creek Site to allow the demolition of approximately 21,000 square feet of existing commercial space, the construction of an 87-unit apartment complex, a new 7,000 square foot commercial building, and the removal of approximately 57 trees (See Attachment A for Planning Commission Resolution Nos. 6694, 6695, 6696). Recommended Actions B. The Planning Commission recommends that the City Council approve applications (EA- 2011-15, DP-2011-05, ASA-2011-19, TR-2012-13) mitigated negative declaration, development permit, architectural site approval, and tree removal permit for the Biltmore Apartments Site to allow the construction of 12 new residential units at an existing apartment complex, and the removal of approximately 5 trees (See Attachment B for Planning Commission Resolution Nos. 6697, 6698, & 6699). Applications: Stevens Creek Site Description EA-2011-16, DP-2011-06, ASA-2011-20, TR-2012-18 Biltmore Apartments Site EA-2011-15, DP-2011-05, ASA-2011-19, TR-2012-13 Applicant: Mike Ducote (Prometheus Real Estate Group) Location: 20030, 20060 Stevens Creek Blvd, 10041 S Blaney Ave, & Vacant Lot (APNs: 369-03-004, 369-03-003, 369-03-006, 369-03-007) 10159 S Blaney Ave (APN: 369-03-008) Application Summary: Stevens Creek Site: 1. Development Permit (DP-2011-06) to allow the demolition of approximately 21,000 square feet of existing commercial space and the construction of a mixed-use project consisting of 87 apartment units and a 7,000 square foot commercial building. 2. Architectural and Site Approval (ASA-2011-20) for a new mixed-use development consisting of 89 apartment units and a 7,000 square foot commercial building. 3. Tree Removal Permit (TR-2012-18) to allow the removal and replacement of approximately 57 trees in conjunction with the construction of a new apartment and commercial building. Biltmore Apartment Site: 4. Development Permit (DP-2012-05) to allow the construction of 12 new residential units at an existing apartment complex 5. Architectural and Site Approval (ASA-2011-19) for 12 new residential units within an apartment complex. 6. Tree Removal Permit (TR-2012-13) to allow the removal and replacement of approximately 5 trees in conjunction with the construction of new apartment units at an existing apartment complex. Please note, since the project involves developments on several parcels (existing Biltmore Apartments parcel and several parcels along Stevens Creek Blvd. and Blaney Ave.), multiple applications are required but will be reviewed and approved at the same time because of the common ownership and the proposed shared connections/access. For a complete overview of the project, please see Attachment C, Planning Commission Staff Report. Project Data Summary: Stevens Creek Site Consistency General Plan Land Use Designation Commercial/Office/Residential Yes General Plan Housing Element Housing Element Site #4 (excluding Chili’s) Yes Conceptual Plan *Heart of the City Specific Plan *Yes, based on the recommendation that the Stevens Creek Site Apartment Complex is reduced from 89 units to 87 units Zoning Designation P (CG, Res) Yes Development Allocation (Heart of the City) Commercial Balance: 105,870 + 14,082 net = 119,952 sq ft Residential Unit Balance: 308 – 87 = 221 Yes Environmental Assessment Mitigated Negative Declaration (EA-2011- 16) N/A Lot Size 141,203 sq ft (3.24 acres) N/A Proposed Commercial Building 7,000 sq ft N/A Proposed Demolition 21,000 sq ft N/A Allowed/Required Proposed Consistency Residential Density (Net of the commercial parking and building areas as per the HOC) 25 DU/Gr. Ac. 87 Units 25 DU/Gr. Ac. 87 Units Yes Parking 197 197 (42 Com + 155 Res) Yes Building Height 45’ 38’6” Yes Biltmore Apartments Site Consistency General Plan Designation Medium/High Density (10-20 DU/Gr. Ac.) Yes General Plan Housing Element Existing Residential Apartment Site Yes Conceptual Plan Heart of the City Specific Plan Yes Zoning Designation P(R-3) 10-20 Yes Development Allocation (Heart of the City) Residential Unit Balance: 221 – 12 = 209 Yes Environmental Assessment Mitigated Negative Declaration (EA-2011- 15) N/A Lot Size 440,827 sq ft (10.12 acres) N/A Proposed Demolition 700 sq ft N/A Allowed/Required Proposed Consistency Residential Density (Net of the commercial parking and building areas as per the HOC) 20 DU/Gr. Ac. 220 Units 20 DU/Gr. Ac. 191 Units (179 Existing Units 12 New Units) Yes Parking 320 320 Yes Building Height 45’ 27’6” Yes Discussion Background The project area consists of: The Stevens Creek site, which is located generally at the southwest corner of Stevens Creek Boulevard and Blaney Ave (excluding the corner parcel, Village Falafel restaurant), is surrounded by a variety of commercial, office, quasi public and residential uses and is located within the Heart of the City Specific Plan Area. The site includes four parcels totaling 3.24 acres and is currently being occupied by 21,000 square feet of commercial buildings. Existing uses on these parcels include a Chili’s restaurant (6,000 sq ft), Shan restaurant (9,000 sq ft), a small commercial strip center (6,000 sq ft), and a vacant parcel. The four lots on the Stevens Creek site are proposed to be merged to create one parcel totaling 3.24 acres. The Biltmore site consists of approximately 11.01 acres and has 179 existing apartment units. Biltmore Apartments have been in operation since 1970s and has gone through one prior update/renovation in 1999. Development Allocation The project will not draw from the Heart of the City’s commercial balance of 105,870 square feet. Instead, a net of 14,082 square feet will be returned to the balance. The commercial development allocation balance in Heart of the City will be 119,952 square feet after project approval. Furthermore, 308 residential units are available from the Heart of City area. A remaining balance of 209 (308 - 99) residential units is still available if the proposed project is approved. Planning Commission Meeting On May 8, 2012, the Planning Commission voted 3-1 (Stevens Creek Site) and 4-0 (Biltmore Apartments Site) recommending approval of the new 99 apartment units, 7,000 square foot commercial building, and tree removals on both sites (See Attachment C, Planning Commission Staff Report). Overall, the Commission commented that the project was well designed and appropriate for the area. Several of the Commissioners also acknowledged that the design and the format of proposed new commercial building benefitted from having a retail expert during the design process (See Attachment I, Recommendations by Real Estate Partners). One Commissioner was supportive of most of the elements in the Stevens Creek Site project but did not vote in favor of the apartments and commercial building on the Stevens Creek Site, citing concerns that the land area of the proposed commercial building was smaller than that of the Chili's parcel, which was included in the development. Staff Note: As part of the 2007-2014 Housing Element required by the State, the proposed mixed-use project along Stevens Creek Boulevard is located on a site designated for housing (excluding the Chili’s site). In order to ensure that the development of the Chili’s site does not result in a reduction of retail, the project proposes replacing the Chili’s building with a new retail/commercial building along the Stevens Creek Blvd. with enhanced visibility and access. The proposed commercial portion of the project is comparable to the existing Chili's site both in terms of building size and land area. The existing Chili's building is approximately 6,000 square feet and the land area is 47,320 square feet. The proposed commercial building is larger at 7,000 square feet and the land area is comparable at 40,085 square feet and includes all the required parking for the retail/commercial project. Additionally, based on concerns cited by the public during the meeting, the Commission added a condition that requires the applicant to work with staff prior to issuance of building permits to explore potential pedestrian safety improvements at the intersection of Stevens Creek Boulevard and Blaney Avenue. The Planning Commission meeting minutes were not available at the time of the preparation of this staff report and will be provided at the City Council hearing. Outreach Efforts and Public Comments A neighborhood meeting was held Wednesday, March 14, 2012 to gather community input. Property owners and neighbors expressed concerns regarding traffic and school impacts, parcel tax, driveway location, and disappointment that the corner property (Village Falafel) was not included as part of the project. Others welcomed the redevelopment of the site, especially the commercial building fronting Stevens Creek Blvd, the modern architecture, and conformance to Heart of the City requirements (See Attachments J & K). Additional comments from the public received (including comments raised during the Planning Commission hearing) are summarized below (staff response is in italics): • Concerns about the project school impacts and mitigations – Under State law, the City is not permitted to consider school impacts as a determining factor for project review and approval. However, it is the City's policy to maintain a good relationship with the school districts. Therefore a copy of the Enrollment and Fiscal Impact Analysis, prepared by Schoolhouse Services (a consulting firm retained by the City that frequently services both the Cupertino Union School District and the Fremont Union High School District), has been forwarded to the respective elementary and high school districts for review and consideration (See Attachment G, Enrollment and Fiscal Impact Analysis). The school districts have not expressed any specific concerns about the project. • Questions about the accuracy of the school analysis – The School Enrollment and Fiscal Impact analysis was prepared by the consultant hired by the Cupertino Union School District and the Fremont Union High School District. • Concerns with the intensity and traffic impacts from the project – Hexagon was retained by the City to analyze the project to ensure that the proposed parking arrangement is adequate and that there are no significant traffic impacts to the surrounding neighborhood or adjacent uses (See Attachment F, Transportation Impact Analysis). The report concludes that the project provides sufficient amount of parking and that there is no significant increase in project trips generated, that the project would not result in unacceptable levels of service, nor would it create any other adverse traffic impacts. • Questions about the residential density calculations – In accordance to the Heart of the City Specific Plan, the total land area used to calculate the maximum allowable residential density for the proposed Stevens Creek site excludes the parking and land areas devoted to the commercial portion of the project. As a result, the project is permitted to have a maximum of 87 units. As referenced previously, the staff recommendation and resolution require the project to eliminate two (2) units in order to comply with the Heart of the City Density requirements. The proposed Biltmore Apartment parcel does not have any commercial components and permits a maximum of 220 units. The project proposes adding 12 new units to the complex resulting in a total of 191 units, and complies with the maximum allowed density of 20 units per acre. The proposed project is consistent with the Heart of the City density requirements. • Questions about the retail viability – To ensure that the proposed commercial building will be leasable and facilitate successful businesses, Prometheus has retained a commercial real estate consultant, to review the project and provide recommendations to optimize the project's marketability and viability given current and upcoming market demands/trends (See Attachment I, Recommendations by Real Estate Partners). The retail consultant’s recommendations are summarized as follows: o Provide tenant bay depths of at least 40 feet o Provide outside patio as added amenity o Provide 14’ sidewalk for a comfortable and inviting environment o Widen the glazing on front elevation for tenant space flexibility o Rear entrances for customer convenience o Sign program as integral part of the design, should not be an afterthought o Accessible, adequate and visible commercial parking stalls The project has incorporated most of the retail consultant's comments. A condition has been added requiring the final building and site plan to address all the above recommendations prior to the issuance of building permits • Concerns with the loss of commercial space – The existing parcels are designated as Housing Element sites (excluding Chili’s), the intent of which is to provide future residential units on site. In order to ensure that the development of the Chili’s site does not result in a reduction of retail, the project proposes replacing the Chili’s building (approximately 6,000 square feet) with a new 7,000 sq ft commercial building along the Stevens Creek Blvd. with enhanced visibility and access. This is also consistent with the Heart of the City Specific Plan, which requires retail along the frontage along Stevens Creek Boulevard for mixed-use projects. Please note that the applicant has scheduled a second neighborhood meeting on May 31st, 2012 prior to the City Council hearing. The final hearing summary will be presented to the City Council on June 4th, 2012. Prepared by: Simon Vuong, Assistant Planner Reviewed by: Gary Chao, City Planner & Aarti Shrivastava, Community Development Director Approved for Submission by: Attachments: Amy Chan, Interim City Manager A. Planning Commission Resolution Nos. 6694, 6695, 6696 B. Planning Commission Resolution Nos. 6697, 6698, 6699 C. Planning Commission Staff Report from May 8, 2012 D. Second Review Comments/Notes, architectural recommendations by Studios Architecture dated February 13, 2012 E. An Arborist Review of the Proposed Project at 20030 Stevens Creek Boulevard (Biltmore Adjacency), Cupertino, California, dated February 24, 2012 F. Biltmore Apartments – Stevens Creek Bl, Draft Transportation Impact Analysis, by Hexagon Transportation Consultants, Inc., dated March 30, 2012 G. Enrollment and Fiscal Impact Analysis, 20030 Stevens Creek Project, by Schoolhouse Services, dated January 2012 H. Initial Study for the 20030 Stevens Creek Boulevard and Biltmore Apartments Project, dated April 2012, by David J. Powers & Associates I. 20300 Stevens Creek Boulevard & Biltmore Apartments, Cupertino, California, recommendations by Real Estate Partners, dated April 23, 2012 J. Brief Notes from Neighborhood Meeting, held March 14, 2012 K. List of Public Comments Received Prior to Planning Commission Meeting L. Additional Public Comments Received & Desk Items from the May 8th, 2012 Planning Commission Meeting M. Supplemental Drawings and Renderings N. Plan Set