CC 2016-07-26_12a Pre-App Ag Land Conversion Mitigation
MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
BY: KELLY HEFFERNON, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF PRE-APPLICATION NO. 16-003 REGARDING
AGRICULTURE LAND CONVERSION MITIGATION; LOCATION - EAST
CHERRY AVENUE; APPLICANT – ARROYO GRANDE VALLEY
JAPANESE WELFARE ASSOCIATION (AGVJWA)
DATE: JULY 26, 2016
RECOMMENDATION:
It is recommended the City Council provide the applicant with preliminary comments
regarding whether specified uses on the subject property would satisfy agricultural
conversion mitigation requirements given the historical use of the property.
FINANCIAL IMPACT:
No fiscal impact at this time.
BACKGROUND:
Project Location
Item 12.a. - Page 1
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 16-003 REGARDING AGRICULTURE
LAND CONVERSION MITIGATION; LOCATION - EAST CHERRY AVENUE;
APPLICANT – ARROYO GRANDE VALLEY JAPANESE WELFARE ASSOCIATION
(AGVJWA)
JULY 26, 2016
PAGE 2
On December 9, 2003, the City Council adopted Ordinance No. 550 (Development
Code Amendment 03-005) to implement the second in a series of recommendations
initiated by Resolution 3699, incorporating regulations and amending the Zoning Map to
create an Agricultural Preservation Overlay District (buffers) of 100 feet around all
agriculturally zoned property, requiring adequate findings for subdivision or rezoning of
agricultural lands, and implementing mitigation requirements and revising land use
regulations for all agricultural districts.
In May 2010, the City Council adopted Ordinance No. 623 that amended Section
16.12.170 of the Municipal Code to clarity the definition of “Agricultural Land” and for the
purposes of agricultural conversion and mitigation policies.
ANALYSIS OF ISSUES:
The Arroyo Grande Valley Japanese Welfare Association (AGVJWA) has owned the
subject 1.51 acre property since the 1920’s. In accordance with Arroyo Grande
Municipal Code (AGMC) Section 16.12.020, the applicant has requested pre-application
review in order to get preliminary comments on the issue of whether the historical use of
this property and their proposed Japanese American Agricultural Legacy project,
included as Subarea 3 of the Draft East Cherry Avenue Specific Plan (the “Draft
Specific Plan”), can be considered adequate for the purpose of agricultural mitigation
(see Attachment 1 for letter from applicant to the City).
According to AGVJWA, when AGVJWA purchased the property, it was developed with
two (2) houses and accessory buildings. The site was surrounded on all sides by open
fields and orchards. Historical aerial photos starting in the 1940’s provide evidence that
this property was one of the few lots developed and not used for agricultural production.
The use of this property is documented in the Draft Specific Plan, Appendix A (see
Attachment 2). The property was originally purchased as a place for the Japanese
American farming families to gather as a community, and was used as such until the
1960’s. According to AGVJWA, at no time was the property used for agricultural
cultivation. From the late 1960’s to 2011 (when the last remaining building was burned
by arson), the Boy Scouts and Judo Club rented the property from AGVJWA as a place
to meet as a club and a place to hold martial arts practices and events.
In the 2001 General Plan, the City implemented specific requirements for agricultural
resource protection in order to “avoid and/or mitigate loss of prime farmland soils and
conserve non-prime Agriculture use and natural resource lands.” During public review
of the 2001 General Plan, the applicant asserts that AGVJWA community members
spoke about their opposition of changing the AGVJWA property from Mixed-Use to
Agriculture. The oppositions were based on the property’s historic uses, which include
residential (detached house), cultural (assembly building, schoolhouse) and outdoor
Item 12.a. - Page 2
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 16-003 REGARDING AGRICULTURE
LAND CONVERSION MITIGATION; LOCATION - EAST CHERRY AVENUE;
APPLICANT – ARROYO GRANDE VALLEY JAPANESE WELFARE ASSOCIATION
(AGVJWA)
JULY 26, 2016
PAGE 3
recreational and cultural activities (baseball, weddings, judo, etc.). According to the
applicant, the property was not utilized for farming or agricultural uses at any time under
AGVJWA ownership.
The current Agricultural land use designation restricts the potential for continuing the
uses on the site as a cultural asset to the local Japanese American families. The goal
of the AGVJWA is to return the property to its original intended use that can be enjoyed
by generations to come.
A review of General Plan policies, Municipal Code requirements and property
components are included below regarding agricultural conversion mitigation. It should
be kept in mind that at this stage the City Council is only providing preliminary
comments as part of the applicant’s request for pre-application review (AGMC Section
16.12.020) on the issue of whether mitigation is required. The adequacy of mitigation
under the California Environmental Quality Act (CEQA) for the Specific Plan project, or
any other potential agricultural conversion, cannot be fully determined until all potential
project related environmental impacts and mitigation measures are fully identified,
analyzed, disclosed, circulated for comment and findings are ultimately made for
certification by the City Council.
The 2001 General Plan, including subsequent updates, specifies requirements for
agricultural resource protection. Objective Ag1 states: “Avoid and or mitigate loss of
prime farmland soils and conserve non-prime Agriculture use and natural resource
lands.” Other policies include requirements for agricultural buffers and maintaining
overall protection of lands through a mitigation program by obtaining agricultural
easements. Pertinent policies are described below:
• Ag1-4 Establish and apply a significance criterion (threshold of significance) for
CEQA analysis, as provided by CEQA Guidelines Section 15064.7, that
considers loss of prime farmland soils as a significant adverse environmental
impact.
o Ag1-4.1 Loss of prime farmland soils shall refer to their unavailability for
agricultural use. Loss may occur through natural causes or development
such as coverage (e.g., paving, construction of buildings, etc.), or
conversion to urban/suburban use (including residential yards/gardens
and recreational areas). Cessation of agricultural use shall not constitute
loss so long as the parcel remains fallow or is allowed to revert to a
natural undeveloped state. Site improvements that are intended to support
agricultural operations - such as grading, irrigation or drainage facilities,
unpaved roads, or farm buildings and structures -- shall not constitute loss
so long as the improvements do not substantially diminish the capability of
Item 12.a. - Page 3
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 16-003 REGARDING AGRICULTURE
LAND CONVERSION MITIGATION; LOCATION - EAST CHERRY AVENUE;
APPLICANT – ARROYO GRANDE VALLEY JAPANESE WELFARE ASSOCIATION
(AGVJWA)
JULY 26, 2016
PAGE 4
agricultural operations on the parcel or within the area and the
improvements are directly related to agricultural production on the site.
o Ag1-4.2 Possible mitigation for loss of areas having prime farmland soils
may include permanent protection of prime farmland soils at a ratio of at
least 1:1 and up to 2:1 with regard to the acreage of land removed from
the capability for agricultural use. Permanent protection may involve, but is
not limited to, dedication of a perpetual agriculture or conservation
easement or other effective mechanism to ensure that the area chosen as
mitigation shall not be subject to loss of its prime farmland soils. Suitability
of location shall be determined by the City Council. The aim shall be to
protect and preserve prime farmland soils primarily within and contiguous
to City boundaries, secondly within the Urban Land Use Element area,
and thirdly within the larger Arroyo Grande Valley and La Cienega Valley
within the Area of Environmental Concern. Other potential mitigation
measures for loss of areas having prime farmland soils include payment of
in-lieu fees or such other mitigation acceptable to the City Council.
o Ag1-4.3 Since prime farmland soils occur naturally and are geographically
specific, the only means for mitigation to less than significant is
preservation. The City’s aim shall be to maintain contiguity of Ag and
C/OS parcels and avoid fragmentation of areas having prime farmland
soils. The City shall avoid development of prime farmland soil areas by
directing growth potential to more suitable urban locations. Only after the
imposition of available mitigation and consideration of alternatives to avoid
the proposed action, may the City Council approve development on prime
farmland soils subject to overriding considerations as permitted by
California Government Code Section 15093.
The original intent of General Plan policies, including Ag1-4, was to provide some
flexibility on determining adequate mitigation to satisfy the goals and policies of the
General Plan. General Plan Policy Ag1-4.2 specifically states that “other potential
mitigation measures for loss of areas having prime farmland soils include payment of in-
lieu fees or such other mitigation acceptable to the City Council.”
The following Municipal Code sections are also pertinent to the issue:
Section 16.04.070 Definitions – “agricultural land or farmland” means those land areas
of the county and/or city specifically designated or zoned as agriculture, agriculture
preserve or agricultural general.
Item 12.a. - Page 4
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 16-003 REGARDING AGRICULTURE
LAND CONVERSION MITIGATION; LOCATION - EAST CHERRY AVENUE;
APPLICANT – ARROYO GRANDE VALLEY JAPANESE WELFARE ASSOCIATION
(AGVJWA)
JULY 26, 2016
PAGE 5
“Agricultural mitigation land" means agricultural land encumbered by a farmland deed
restriction, a farmland conservation easement or such other farmland conservation
mechanism acceptable to the city.
Subsection 16.12.170 F.
Agricultural Land Conversion.
1. The city shall require agricultural mitigation by applicants for discretionary
entitlements which will subdivide or change the use of land zoned agriculture
or agriculture preserve to any non-agricultural use.
2. Agricultural mitigation shall be satisfied by:
a. Granting an agricultural conservation easement, a farmland deed
restriction or other agricultural conservation mechanism to or for the benefit
of the city and/or a qualifying entity approved by the city. Mitigation shall be
required for that portion of the land which no longer will be designated or
zoned agricultural land, including any portion of the land used for park and
recreation purposes, that will 1) permanently protect prime agricultural and
prime soils from development; 2) or will benefit preservation of agricultural
land and operations through other means as determined by the city council.
At least as many acres of prime agricultural land shall be protected as was
changed to a non-agricultural use within city limits, or up to two times as
many acres of agricultural land shall be protected outside the city but within
the city's area of environmental concern, as was changed to a
nonagricultural use, in order to mitigate the loss of agricultural land; or
b. In lieu of conserving agricultural land as provided above if the city council
determines that the payment of in-lieu fees provide a superior opportunity to
satisfy the goals and policies of the general plan, agricultural mitigation may
be satisfied by the payment of a fee, established by the city council by
resolution or through an enforceable agreement with the developer, based
upon a farmland replacement factor of up to two-to-one (2:1) to be used for
acquisition of a farmland conservation easement or farmland deed
restriction. The in-lieu fee option must be approved by the city council. The
fee shall be based upon current appraisal information for the acquisition of a
conservation easement on replacement land plus all related city
administrative and legal costs. The in-lieu fee, paid to the city, shall be used
Item 12.a. - Page 5
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 16-003 REGARDING AGRICULTURE
LAND CONVERSION MITIGATION; LOCATION - EAST CHERRY AVENUE;
APPLICANT – ARROYO GRANDE VALLEY JAPANESE WELFARE ASSOCIATION
(AGVJWA)
JULY 26, 2016
PAGE 6
for farmland mitigation purposes, with priority given to lands with prime
agricultural soils located within the city; or
c. Other mitigation measures may be determined acceptable by the city
council.
3. It is the intent of this program to work in a coordinated fashion with San Luis
Obispo County and state agencies, and, therefore, farmland conservation
easement areas may overlap partially or completely with habitat easement areas
approved by the state department of fish and game. Up to twenty percent (20%)
of the farmland conservation easement area may be enhanced for wildlife habitat
purposes as per the requirements of the state department of fish and game
and/or San Luis Obispo County management programs; payment of appropriate
maintenance, processing or other fees may also be required.
4. Comparable Soils and Water Supply.
a. To the greatest extent possible, the agricultural mitigation land shall be
comparable in soil quality with the agricultural land whose use is being
changed to nonagricultural use.
b. The agricultural mitigation land shall have an adequate water supply to
support agricultural use and the water supply on the agricultural mitigation
land shall be protected in the agricultural conservation easement, the
farmland deed restriction or other document evidencing the agricultural
mitigation.
5. Eligible Lands. The first priority for agricultural mitigation land shall be
farmland located within city limits. The second priority for agricultural mitigation
shall be farmland located adjacent to city limits, and the third priority, farmland
located within the city's area of environmental concern, as shown in the 2001
General Plan. The criteria for preferred locations or zones for agricultural
mitigation land shall be determined by the city council after receiving input from
the planning commission and San Luis Obispo County Agricultural
Commissioner. In making their determination, the following factors shall be
considered:
a. The preferred locations shall be compatible with the 2001 General Plan
and the general plan of San Luis Obispo County.
Item 12.a. - Page 6
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 16-003 REGARDING AGRICULTURE
LAND CONVERSION MITIGATION; LOCATION - EAST CHERRY AVENUE;
APPLICANT – ARROYO GRANDE VALLEY JAPANESE WELFARE ASSOCIATION
(AGVJWA)
JULY 26, 2016
PAGE 7
b. The preferred locations shall include comparable soil types to that most
likely to be lost due to proposed development.
c. Agricultural mitigation land consisting of contiguous parcels shall be
preferred.
d. Land previously protected by a conservation easement of any nature or
kind is not eligible to qualify as agricultural mitigation land.
6. Requirements of Instruments—Duration.
a. To qualify as an instrument encumbering agricultural mitigation land, all
owners of the agricultural mitigation land shall execute the instrument.
b. The instrument shall be in recordable form and contain an accurate legal
description setting forth the description of the agricultural mitigation land.
c. The instrument shall prohibit any activity, which substantially impairs or
diminishes the agricultural productivity of the land, as determined by the
planning commission.
d. The instrument shall protect the existing water rights and retain them with
the agricultural mitigation land.
e. The applicant shall pay an agricultural mitigation fee to pay the costs of
administering, monitoring and enforcing the instrument in an amount
determined by city council.
f. Interests in agricultural mitigation land shall be held in trust by a qualifying
entity and/or the city, in perpetuity. Except as provided in subsection (g) of
this section, the qualifying entity or the city shall not sell, lease, or convey
any interest in agricultural mitigation land which it shall acquire, except to
continue agricultural uses in accordance with the encumbering instrument.
Item 12.a. - Page 7
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 16-003 REGARDING AGRICULTURE
LAND CONVERSION MITIGATION; LOCATION - EAST CHERRY AVENUE;
APPLICANT – ARROYO GRANDE VALLEY JAPANESE WELFARE ASSOCIATION
(AGVJWA)
JULY 26, 2016
PAGE 8
g. If judicial proceedings find that the public interests described in Chapter
16.28 of this title can no longer reasonably be fulfilled as to an interest
acquired, the interest in the agricultural mitigation land may be extinguished
through sale and the proceeds shall be used to acquire interests in other
agricultural mitigation land in San Luis Obispo County, as approved by the
city and provided in this chapter.
h. If any qualifying entity owning an interest in agricultural mitigation land
ceases to exist, the duty to hold, administer, monitor and enforce the interest
shall pass to the city or its designee.
i. Each qualifying entity shall monitor lands and easements it acquires under
this chapter and shall review and monitor the implementation of the
management and maintenance plans for these lands and easement areas.
The AGMC Section 16.12.170(B) requires that changing the land use designation from
Agriculture to Mixed Use and the zoning designation from Agriculture to Village Mixed
Use would require mitigation. However, given the history of this property of being used
for residential, public assembly and cultural uses and not agricultural cultivation, and in
consideration of proposed uses on the site that recognize and realize the historical use
of the property, preliminary comments are being sought regarding the mitigation
requirement.
ALTERNATIVES:
The following alternatives are presented for City Council consideration:
1. Provide preliminary comments and suggestions to the applicant regarding not
requiring mitigation to convert the subject property from an Agricultural to a
Mixed Use land use designation;
2. Provide preliminary comments and suggestions to the applicant regarding
requiring mitigation to convert the subject property from an Agricultural to a
Mixed Use land use designation; or
3. Provide direction to staff.
ADVANTAGES:
The applicant is currently seeking preliminary comments and suggestions from the City
Council on whether mitigation is necessary to change the land use and zoning
designations from Agricultural to Mixed Use and develop the site as a Japanese
American Agricultural Legacy project. Not requiring agricultural conversion mitigation
Item 12.a. - Page 8
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 16-003 REGARDING AGRICULTURE
LAND CONVERSION MITIGATION; LOCATION - EAST CHERRY AVENUE;
APPLICANT – ARROYO GRANDE VALLEY JAPANESE WELFARE ASSOCIATION
(AGVJWA)
JULY 26, 2016
PAGE 9
will assist AGVJWA in developing the site as envisioned given the anticipated large cost
associated with obtaining a conservation easement or paying an in-lieu fee.
DISADVANTAGES:
Not requiring agricultural conversion mitigation could be setting a precedent with other
properties within the City currently designated Agriculture but not cultivated.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION:
The Agenda was posted at City Hall on Thursday, July 21, 2016. The Agenda and staff
report were posted on the City’s website on Friday, July 22, 2016.
ATTACHMENTS:
1. Letter from AGVJWA dated July 13, 2016
2. Appendix A of the Draft East Cherry Avenue Specific Plan
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