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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 O N R D . 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 THIS PAGE INTENTIONALLY LEFT BLANK Item 11.a. - Page 12