CC 2020-10-27_11a PreApplication_727 El Camino Real_ELA FoodsMEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY McDONALD, CITY MANAGER/ACTING COMMUNITY
DEVELOPMENT DIRECTOR
BILL ROBESON, ASSISTANT CITY MANGER/PUBLIC WORKS
DIRECTOR
BY: ANDREW PEREZ, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF PRE-APPLICATION NO. 20-003; CONSTRUCTION
OF A PROPOSED FOUR-STORY, 113 ROOM HOTEL; LOCATION – 727
EL CAMINO REAL; APPLICANT – ELA FOODS, INC.; REPRESENTATIVE
– CAROL FLORENCE, OASIS ASSOCIATES INC.
DATE: OCTOBER 27, 2020
SUMMARY OF ACTION:
This pre-application discussion of the proposed project will provide the applicant with
preliminary feedback on the proposal for a four-story hotel at the subject location.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no impact to financial or personnel resources associated with the pre-application.
RECOMMENDATION:
It is recommended the City Council review the proposed project and provide preliminary
comments to the applicant.
BACKGROUND:
The 1.89-acre site is comprised of three (3) separate parcels, all zoned Highway Mixed-Use
(HMU). Two (2) of the parcels are owned by a private property owner and the third parcel is
owned by the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency.
The project site is located at the corner of N. Halcyon Road and El Camino Real, and
bounded by Faeh Avenue to the south (Attachment 1). Surrounding land uses include the
Operating Engineers Union building directly west of the project site and the Arroyo Grande
Cemetery to the west across Halcyon Road. Highway 101 and El Camino Real border the
northeast side of the triangular project site. Faeh Avenue and the single-family
neighborhood beyond create the southeast boundary of the site. There are two vacant
structures on the site, formerly occupied by Francisco’s Country Kitchen Restaurant and
Beach Front Auto Service.
Item 11.a. - Page 1
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 20-003; CONSTRUCTION OF A
PROPOSED FOUR-STORY, 113 ROOM HOTEL; LOCATION – 727 EL CAMINO REAL;
APPLICANT – ELA FOODS, INC.; REPRESENTATIVE – CAROL FLORENCE, OASIS
ASSOCIATES INC.
OCTOBER 27, 2020
PAGE 2
The purpose of the HMU zoning where the site is located is to provide areas with a variety
of visitor-serving and auto-related uses in areas convenient to both freeway traffic and
vehicles or pedestrians. Development standards and design guidelines are intended to
enhance this specialized mix of uses. The HMU district implements and is consistent with
the Mixed Use land use category of the General Plan. The HMU zone allows hotels with the
approval of a conditional use permit (CUP).
Project Description
The application, when submitted, would consist of a lot merger to combine the three (3) lots
into a single parcel and a conditional use permit to construct a four-story hotel with 113 guest
rooms, a restaurant, conference rooms, fitness area, and a swimming pool.
The preliminary and conceptual plans propose parking on the ground level, a restaurant,
conference rooms, fitness area, and nineteen (19) guest rooms on the second floor. The
third and fourth floors would have 47 guest rooms each (Attachment 2). A development
agreement is proposed to allow the project to exceed the height limit in the HMU zoning
district and to memorialize various benefits of the project to the City and the developer.
Cambria Hotels, which operates hotels throughout the nation, would be the tenant and
property owner.
The hotelier has not decided on an architectural style for the hotel, but states that they “pride
themselves on creating a unique sense of place in the context of each community, within a
design framework that is optimized for operational excellence”.
ANALYSIS OF ISSUES:
General Plan Consistency
The General Plan Land Use designation of the project site is Mixed Use, which is intended
to provide for a variety of retail and service commercial, offices, residential, and other
compatible uses that support multiple neighborhoods and the greater community. Policy 5-
8 of the Land Use Element encourages the development of commercial, office, and
residential uses along the three (3) primary mixed-use corridors: East Grand Avenue, Traffic
Way, and El Camino Real. Tourist accommodation and eating and drinking establishments
are specifically encouraged by this policy.
The project also helps further three (3) of the City’s Primary Economic Development
Element goals, including:
1. Create a thriving economy
2. Meet unmet community needs
3. Promote business activity
Item 11.a. - Page 2
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 20-003; CONSTRUCTION OF A
PROPOSED FOUR-STORY, 113 ROOM HOTEL; LOCATION – 727 EL CAMINO REAL;
APPLICANT – ELA FOODS, INC.; REPRESENTATIVE – CAROL FLORENCE, OASIS
ASSOCIATES INC.
OCTOBER 27, 2020
PAGE 3
The proposed project includes meeting rooms that could be utilized by local businesses and
community groups. In addition to the revenue that a hotel will generate through transient
occupancy tax (TOT) and additional sales tax revenue through the proposed restaurant, the
hotel will generate jobs during the construction phase and in perpetuity during its operations.
Development Agreement
The applicant has indicated that they will pursue a development agreement with the City to
guide the intensity, timing, and conditions of development of the subject property. The
development agreement would also include provisions to allow the four-story, 45-foot tall
hotel that is proposed. Although the height limit for structures in the HMU zone is 36 feet for
visitor serving uses, a development agreement would include measures to protect the
health, safety, and welfare of the public. The Government Code and Municipal Code
recognize that in specific and unique situations, it may be in the public's best interest to enter
into a development agreement for the benefit of both the public and the developer.
A development agreement may allow a project that exceeds the height limitation for the
zoning district. A development agreement can be beneficial to the applicant in that it allows
for flexibility from the development standards based on factors that are unique to the project
and site. A development agreement also secures an early commitment from the applicant
to pursue a project that demonstrates a public benefit. Benefits for the City also include
revenue generation from transient occupancy tax, sales tax, and job creation. With the
addition of a hotel in a city, local businesses often benefit as well, with hotel guests
frequenting other local businesses. The flexibility allowed by a development agreement is
also beneficial because it would not set a precedent for the construction of an over-height
structure due to its specificity to the project site. A development agreement is also a tool to
mitigate potential impacts to the residential neighborhood.
Parking
The Municipal Code requires hotels to provide one (1) parking space per guest room and
two (2) spaces for the associated office space, resulting in a parking requirement of 115
spaces for the proposed hotel use. When more than one use occupies a single structure or
parcel, the parking rate is the sum of the requirements for each use. Therefore, the parking
requirement for the restaurant and meetings rooms will be added to the 115 spaces required
for the hotel. Restaurants have a parking rate of one (1) parking space for every 100 square
feet of floor area accessible to the public. Public assembly rooms require one (1) space for
every 50 square feet of floor area designated for that use. The amount of floor area
dedicated to the restaurant and meeting rooms is conceptual at this point in the design, but
those areas will need to be accounted for in the final parking calculation. The conceptual
design is likely to fall short of providing the number of parking spaces required; therefore,
the applicant has inquired about utilizing the ten (10) parking spaces along the south side of
El Camino Real, to the west of intersection of Faeh Ave. and El Camino Real, for hotel
Item 11.a. - Page 3
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 20-003; CONSTRUCTION OF A
PROPOSED FOUR-STORY, 113 ROOM HOTEL; LOCATION – 727 EL CAMINO REAL;
APPLICANT – ELA FOODS, INC.; REPRESENTATIVE – CAROL FLORENCE, OASIS
ASSOCIATES INC.
OCTOBER 27, 2020
PAGE 4
guests. The ten (10) parking spaces are part of the Park-N-Ride lot for bus riders and
carpoolers during the day.
Building Height
The project proposes 113 guest rooms to make it economically feasible. Striking a balance
between the number of rooms, constraints associated with the irregularly shaped site, and
the need to provide parking are major influences in the design of the project. To maximize
the value and comply with development standards, a podium-style building was chosen for
the project. The podium-style building allows parking to be located on the ground floor that
would otherwise be used for guest rooms or other amenities. However, the result is a
structure that is proposed to be four stories in order to accommodate the number of rooms
desired by the applicant. The four-story design hides a majority of the parking from view,
adding to the visual appeal of the project. Locating the parking under the guest rooms
prevents parking from sprawling across the entire site, surrounding neighborhood and
surface streets and allows for a substantial landscape buffer along the Faeh Avenue
frontage.
The Municipal Code allows public buildings, hospitals, churches, and schools to have a
maximum height limit of 45 feet in any district. The only structure to take advantage of 45-
foot height limit is the medical office building located at 850 Fair Oaks Avenue. Although it
is 45 feet tall, the structure only has three stories. The majority of St. Barnabas Episcopal
Church, located at 301 Trinity Avenue, is only one-story in height, but features a bell tower
that is just shy of 52 feet tall.
Community Outreach
On July 18, 2020, the applicant held an informational outreach meeting at the project site
with City staff in attendance. One of the main issues made clear by the group was that in
previous project proposals and permit processing, the neighborhood was not included until
late in the process. Continued communication and collaboration with the neighborhood from
the applicant and City staff will be achieved and is critical as the project develops into a
formal application and throughout the review process. The applicant and staff will continue
to consider and address neighborhood concerns through the design phase and as the
project details are finalized.
Other expressed concerns ranged from crime and privacy to light pollution, noise concerns,
and parking. The applicant has indicated that the crime and privacy concerns can be
mitigated through site design, building orientation and design (i.e. window placement), along
with the use of vegetated screens to maintain a use and privacy buffer, and other features
to promote natural surveillance and access controls. The Municipal Code contains
restrictions to minimize light pollution by regulating the location and intensity of fixtures.
Solutions to address concerns with parking include shared use of parking spaces in City and
Item 11.a. - Page 4
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 20-003; CONSTRUCTION OF A
PROPOSED FOUR-STORY, 113 ROOM HOTEL; LOCATION – 727 EL CAMINO REAL;
APPLICANT – ELA FOODS, INC.; REPRESENTATIVE – CAROL FLORENCE, OASIS
ASSOCIATES INC.
OCTOBER 27, 2020
PAGE 5
Caltrans right-of-way on El Camino Real. Permission to allow guests to use those spaces
may alleviate the need for guests to use street parking on Faeh Avenue, which can be limited
to resident parking only or other regulated parking measures.
Next Steps
With feedback from City Council and the public, the applicant will refine the hotel design and
prepare an application for a formal submittal. Staff will begin the environmental review
process, which will likely include an Initial Study and Mitigated Negative Declaration. The
project will undergo review from the Staff Advisory Committee and Architectural Review
Committee prior to a public hearing with Planning Commission and, ultimately, the City
Council. And as mentioned previously, all concerns will be considered throughout the
processing of this project.
ALTERNATIVES:
The following alternatives are presented for City Council consideration:
1. Provide preliminary comments and suggestions to the applicant regarding the
proposed project, as presented; or
2. Provide other direction to staff and/or the applicant.
ADVANTAGES:
The applicant is currently seeking comments and suggestions from the City Council and the
public on processing a development agreement and conditional use permit to establish a
new hotel in the HMU zoning district. Comments made on the proposed project will provide
the applicant with information to make an informed decision whether or not to pursue the
application process for establishm ent of tourist accommodations.
DISADVANTAGES:
The project site is located adjacent on one side to a sensitive use/single-family residential
neighborhood. The neighborhood may be impacted by the proposal if appropriate mitigation
is not incorporated and implemented.
ENVIRONMENTAL REVIEW:
No environmental review is required for this pre-application item. Appropriate environmental
review will be required as part of processing the formal project submittal. The formal
application will require a thorough analysis of potential environmental impacts pursuant to
the California Environmental Quality Act (CEQA).
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2. The applicant mailed a notice of this pre-application
discussion to property owners prior to the meeting.
Item 11.a. - Page 5
CITY COUNCIL
CONSIDERATION OF PRE-APPLICATION NO. 20-003; CONSTRUCTION OF A
PROPOSED FOUR-STORY, 113 ROOM HOTEL; LOCATION – 727 EL CAMINO REAL;
APPLICANT – ELA FOODS, INC.; REPRESENTATIVE – CAROL FLORENCE, OASIS
ASSOCIATES INC.
OCTOBER 27, 2020
PAGE 6
Attachment:
1. Location Map
2. Conceptual Project Plans
Item 11.a. - Page 6
ATTACHMENT 1
Project site
View of project site looking west from the intersection of El Camino Real and Faeh
Avenue
Item 11.a. - Page 7
A PRELIMINARY PROPOSAL FOR FAEH AVENUEEL CAMINO REAL AT HALCYON ROAD, ARROYO GRANDE, CA7/18/20HOTEL IMAGE BOARDSP-1 PersonSpontaneous Gatheringsnal TouchTTailored to the InddividualTies to the landPast and PresentSGhAttention to DetailSense offfffffff Placef TdAtt your ServiiiiiicccccccceicRelationships MatterRelationshipsMatterTimelessGatewayyyyEEEExperiencesy E$77$&+0(17Item 11.a. - Page 8
A PRELIMINARY PROPOSAL FOR FAEH AVENUEEL CAMINO REAL AT HALCYON ROAD, ARROYO GRANDE, CA7/18/20CONCEPTUAL SITE PLANSP-2SCALE: 1”=40’PROPOSED SCHEMATIC SITE PLANEL CAMINO REALHWY. 101 ON-RAMPHWY. 101 OFF-RAMPHIGHWAY 101I.U.O.E. LOCAL 12FAEH AVE. NEIGHBORHOODARROYO GRANDE CEMETARYALOHA INNN. HALCY
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N. ALPI
NE ST. BELLE ST. FAEH AVEBENNETT AVE1PROPOSED ENTRY / EXITTREE SCREENINGSECONDARY ACCESSTREE SCREENINGLANDSCAPELANDSCAPELANDSCAPEPROPOSED ENTRY / EXITPROPOSED 4-STORY HOTEL VIEW ‘A’ FROM WEST BRANCH ST.SHEET SP-4EPARKING BELOW HOTELPARKING BELOW HOTELItem 11.a. - Page 9
A PRELIMINARY PROPOSAL FOR FAEH AVENUEEL CAMINO REAL AT HALCYON ROAD, ARROYO GRANDE, CA7/18/20SECOND FLOOR - ROOMS AND PUBLIC SPACESCONCEPTUAL FLOOR SPACE PLANSSP-3GROUND LEVEL - PARKINGTHIRD + FOURTH FLOOR - ROOMSOR - ROOMSHOTEL ROOMSPUBLICLY-ACCESSIBLE SPACESHOTEL USE / BACK OF HOUSELEGENDItem 11.a. - Page 10
A PRELIMINARY PROPOSAL FOR FAEH AVENUEEL CAMINO REAL AT HALCYON ROAD, ARROYO GRANDE, CA7/18/20HEIGHT COMPARISON OF EXISTING HOTELSSP-4VICINITY MAPBIRDS EYE VIEW PROJECT SITE PROPOSED HOTEL PROTOTYPE(SHOWN AS STUDY MODEL) ALOHA INN ALOHA INN HAMPTON INN VIEW ‘A’ - SOUTHWEST VIEW FROM WEST BRANCH STREETEXISTING ALOHA INN+/-35’ OVERALL HEIGHT FROM EL CAMINO REALPROPOSED CAMBRIA HOTELSSTUDY MODELHIGHWAY 101EL CAMINO REAL35’APPROX. OVERALL HEIGHTHAMPTON INN & SUITES, 1400 WEST BRANCH STREET, ARROYO GRANDEALOHA INN, 611 EL CAMINO REAL, ARROYO GRANDE BUILDING HEIGHT COMPARISON - EXISTING HOTEL PROPERTIES IN ARROYO GRANDE38’APPROX. BLDG. HEIGHT10’+/-ABOVE STREET8’+/-ABOVE STREET27’APPROX. BLDG. HEIGHT48’APPROX. OVERALLHEIGHT45’+/-48’APPROX. OVERALLHEIGHTNOTE: 3 & 4 STORY HOTELHIGHWAY 101EL CAMINO REALFAEH
A
VE.WEST BRANCH ST. VIEW ‘A’ FROM WEST BRANCH ST.FAEH AVE. NEIGHBORHOODARROYO GRANDE CEMETARYARROYO GRANDE LIBRARY35’APPROX. OVERALLHEIGHTItem 11.a. - Page 11
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