City of San Juan Capistrano Agenda Report

Transcription

1 TO: FROM: DATE: SUBJECT: City of San Juan Capistrano Agenda Report Planning Commission Prepared and Submitted by: William Ramsey, AICP, A~s.. is;~./ nt _ Development Services Director. (\\/>?:,,,J ~.) Consideration of a Mitigated Negative Declaration (MND), Development Agreement, Historic Town Center Master Plan Amendment, Tentative Tract Map (TTM) 17626, Conditional Use Permit 13-08, Architectural Control (AC) 13-23, Grading Plan Modification (GPM) 13-03, Tree Removal Plan, Form Based Code Administrative Modifications, Urban Village (San Juan Hotel & Villas); A Proposed Mixed Use Project Including Commercial-Retail Uses, Hotel Use, and Residential Town homes Uses on a 3.17 Acre Parcel Located at 31882, 31878, and Camino Capistrano (Assessor Parcel Numbers: , 51, and 52)(Urban Village) RECOMMENDATION: Open the public hearing and receive public testimony, and by motion: 1. Adopt a resolution recommending that the City Council: a. Adopt a Mitigated Negative Declaration (MND) for the proposed project; b. Approve a Developmen\ Agreement providing for the construction and occupancy of the proposed hotel prior to or concurrently with the development of the proposed residential neighborhood; c. Approve an amendment to the Historic Town Center Master Plan's setback provisions for the Esslinger Building & Judge Egan House subject to design modifications to the proposed hotel that reduce the building mass and visual impacts to the Judge Egan House; d. Conditionally approve the Tentative Tract Map, Architectural Control, Conditional Use Permit, Grading Plan Modification, and Tree Removal Plan subject to conditions of approval; ATTACHMENT 4

2 Pa e2of18. e. Deny the requested administrative modification to the.building height standard to allow a third-story mezzanine for the residential townhouses, and approve the administrative modifications to reduce the hotel parking standard from 1.0 to 0.8 spaces per guest room and to allow and average rear yard setback for residential townhomes adjoining the Historic Town Center Park boundary; 2. Direct staff to prepare a resolution, for consideration at the May 13, 2014, meeting, expressing the Planning Commission's support for the proposed project's mixed-use concept and recommending that the City Council direct the applicant to revise specific components of the project to reduce the proposed density and/or massing. or APPLICANT Urban Village Dev. Co., LLC Josh Host, Principal 2361 Campus Drive, #160 Irvine, CA ENGINEER Civi!Scapes Engineering Crown Valley Pkwy, #8417 Laguna Niguel, CA ARCHITECT Hannouche Architects Samir Hannouche Acacia Street, #260 Newport Beach, CA EXECUTIVE SUMMARY: Urban Village (San Juan Hotel & Villas) has submitted applications requesting City approval of a mixed-use project including commercial, hotel and residential uses situated on a 3.17 acre site in the "heart" of the Historic Town Center. The project proposes about 2,700 square feet of commercial-retaill:>uilding area, a 136-room, threestory hotel, and 33 single-family, residential townhomes (see Enclosure: Large-scale project plans). The proposed hotel also includes a fitness center, lounge, restaurant, swimming pool and spa, and a subterranean, two-level parking garage with 139 parking spaces. The project includes the following applications: A Development Agreement establishing certain rights and obligations on the part of the applicant and the City with respect to the development of the proposed project. An Amendment to the Historic Town Center Master Plan's "Cultural Preservation Alternative" setback standards for new buildings adjoining the Egan House to allow an reduced (average) building setback for the proposed hotel whereas the Master Plan requires new buildings to be setback a distance equal to the height of proposed buildings. Architectural Control for the site planning and architectural design of the proposed project. Grading Modification Plan to allow on-site grade to be altered by more than two feet.

3 Pa e 3 of 18 Tree Removal Plan to allow the removal of existing trees with a diameter of six inches or greater. Tentative Tract Map to allow the. project to be parceled into thirty-four (34) fee-simple, developable lots. Administrative Modifications to the "TC" (Town Center) Zone District standards as follows: i. Table 2A of the Form Based Code limits residential structures to a maximum height of two-stories and 35' -0" whereas the project proposes residential structures with a third-story mezzanine, but with a maximum height less than 35'-0." ii. iii. Table 2A of the Form Based Code requires a minimum 10'-0" rear yard setback whereas the project proposes a variable rear yard setback with a minimum of 5'-0" and average of 8'-0" for residential structures adjoining the project's perimeter. Table 2B of the Form Based Code requires a minimum of 1.0 parking spaces per hotel guest room whereas the project proposes 0.8 guest spaces. Staff has provided three alternatives actions for Commission consideration including a draft resolution should the Commission choose to forward the project to the City Council with a recommendation of approval (Attachment 1). DISCUSSION/ANALYSIS: 1. Do the draft negotiating points proposed as part of the Development Agreement include provisions which protect and further the City's important objectives with respect to the potential development of the proposed project?. The applicant has proposed a Development Agreement including certain provisions establishing the rights and obligations of the developer and the City with respect to the implementation of the proposed project (Attachment 2). The timing of the development of the proposed hotel is one of the most significant issues and staff has advised the applicant that the City, in order to consider project approval, needs absolute assurance that the hotel would be developed before or concurrently with the residential component. The proposed hotel along with the Forster Street extension would further two important objectives of the Historic Town Center Master Plan. 2. Does the. project substantially comply with the goals, pohcies. and recommendations of the Historic Town Center Master Plan? In April 2012, the City Council adopted the Historic Town Center (HTC) Master Plan to guide future development in the Historic Town Center. The Master Plan consists of three major components including the Vision Plan, Public Realm and Infrastructure (Plan), and the Mobility Plan and strategy. The

4 Pa e4of18 Vision Plan established the overall master plan development concept for the Historic Town Center and used illustrative plans to convey how the Plan's goals could be achieved, but not necessarily how they would be achieved (Attachment 3). The Master Plan established the policy framework for the adoption of the Historic Town Center Form Based Code which would manage site-specific development. Vision Plan: In terms of land use, the Vision Plan envisioned the future extension of Forster Street to Del Obispo Street along with the development of offices, courtyard housing, row houses, and live-work lofts. By comparison, the proposed project includes retail use, a hotel, and residential townhouse development. Thus, the project's proposed residential townhomes seek to address, in general terms, the Vision Plan's,.residential component. More importantly, the Form Based Code identified "Dwelling-mufti-family" as a permitted use within the Historic Town Center, in both the "TC" (Town Center) Zone District and "TCE" (Town Center Edge) Zone District. The Form Based Code defines "Dwelling-multi-family" as "a building designed for occupancy by 2 or more dwellings" and includes the following three types of dwelling units: Flat: A single-story unit. Loft: A double story height unit with a mezianine. Townhouse: A two to three-story unit. The Master Plan envisioned two future hotels in the Historic Town Center, the Plaza Banderas Hotel located along Ortega Highway (SR 74) and a future potential hotel located on the Capistrano Plaza site at the northwest corner of Camino Capistrano and Verdugo Street. Based on the currently proposed "The Shops at Capistrano," the approved Plaza Banderas Hotel appears to no longer be a viable development plan for that site, and the Capistrano Plaza site has undetermined future potential at this time. Thus, the proposed project constitutes the best prospect, in the foreseeable future, for the development of a hotel in the Historic Town Center. The proposed hotel use would provide a vitally important economic boost for the downtown and generate significant revenues capable offunding capital improvements in the downtown. Because the Master Plan identified several types of residential use and the implementing Form Based Code expressly establishes "Dwellings-multi-family" as a pemnitted use which expressly includes "townhouse" dwellings, the proposed residential use would be substantially consistent with the Vision Plan's development concept for the Historic Town Center. Public Realm & Infrastructure Plan: An important component of the Master Plan was the balanced provision of landscaped spaces, plazas, and pedestrian-oriented features to compliment the more intensive building massing envisioned in the Historic Town Center by the Master Plan. While the proposed project includes public plaza elements associated with the proposed hotel, the public realm improvements associated with the residential component are limited to streetscape improvements along Forster Street, the proposed pedestrian path connecting Forster Street to Historic Town Center Park, and

5 Pa e5of18 proposed landscape and walkway improvements along the south edge of Historic Town Center. Also, the Form Based Code does not establish maximum floor area ratio (FAR) standards nor minimum open area requirements, but establishes a maximum front building setback, and allows a zero setback. Thus, the Fomn Based Code's standards contribute to the rather intensive nature of site development for the project. However, staff notes that the City's Architectural Design Guidelines establish design policies applicable to the Historic Town Center which would implement the Master Plan and address design considerations. Thus, while the Form Based Code does not establish specific standards requiring public or private space, the Master Plan envisioned a welldeveloped public realm. given the proposed public realm improvements associated with the hotel and residential components, the proposed project would be generally consistent with the Master Plan. However, staff acknowledges that the residential component, specifically the proposed town homes along the two private streets, are not direct beneficiaries of any planned public realm improvements. Staff recommends the Commission find that the proposed hotel and residential development includes public realm improvements consistent with the Master Plan. Mobilitv Plan and Strategy: While the Draft Historic Town Center Master Plan envisioned three street extensions (EI Camino Real, Yorba, and Forster), only the Forster Street extension was included in the adopted Historic Town Center Master Plan. The Master Plan provides for the planned extension of Forster Street through the project site connecting Camino Capistrano and Del Obispo Street. The purpose of this extension is both to provide additional street frontage for new commercial development and to provide additional traffic circulation through the downtown. The project's proposed Forster Street extension geometric design is consistent with the adopted Master Plan which established a 32'-0" street section consisting of two, 11'-0" wide travel lanes, no on-street parking, and 5'-0" wide sidewalks on both sides of the street. While the Master Plan depicted Forster Street generally aligned along the south side of HTC Park, the project aligns Forster Street about 65'-0" south of the HTC Park boundary and proposes residential townhouse development between HTC Park and Forster Street. The Master Plan does not appear to expressly establish the Forster Street alignment as a precise alignment Given the current alignment of Forster Street at Del Obispo Street, the proposed southerly alignment of the Forster Street extension through the project site more closely aligns with the existing Forster Street "stub" at Del Obispo Street Hislorically-Sianificant Buildings: When the City Cou.ncil adopted the Historic Town Center Master Plan in 2012, their action included the adoption of the Program Environmental Impact Report's "Cultural Resources Preservation Alternative." As a result, the Master Plan was amended to establish the following standard to provide an additional level of protection to the Esslinger Building and the Judge Egan House: "Esslinger Building & Judge Egan House: These two properties would be substantially preserved in their existing condition and adaptive re-use of these existing structures would be maintained or could occur consistent with the Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for

6 Page 6 of 18 Rehabilitating Historic Buildings. New buildings on directly adjoining lots must provide a minimum setback equal to the height of the new structure and such new buildings could not exceed the height of the historic structure." While the proposed hotel project meets this standard with respect to the Esslinger Building, it does not meet the current standard with respect to the Judge Egan House. That portion of the hotel adjoining the Judge Egan House has a height of 42'-0" and is setback about 26'-0" from the Judge Egan House. To meet the Master Plan standard, the height of the hotel adjoining the Judge Egan House would need to be reduced to a maximum 26'-0" or the hotel building setback increased an additional 16'-0." The applicant has proposed an Master Plan amendment to allow the minimum setback to be determined using an average setback method whereby the depth of the side yard and rear yard could vary less than the height of the proposed building, as long as the average setback was equal to or greater than the proposed building height. The proposed amendment would effectively reduce the hotel building setback adjoining the north side of the Judge Egan House. The applicant's proposed amendment would accommodate the proposed hotel's setback and building height: "Esslinger Building & Judge Egan House: New buildings on directly adjoining lots must provide a minimum setback equal to the height of the new structure and such new buildings cannot exceed the height of the Esslinger Building or Egan House. However, for a proposed hotel mixed-use building which borders two or more sides of either historic structure, the minimum required setback from the adjoining historic structure will be calculated using an average setback methodology. The average setback methodology averages the sum of the minimum setback distance for each side of the historic building which adjoins a hotel mixed-use project (e.g, where a proposed hotel with a height of 45'-0" adjoins two sides of the historic structure, the hotel would be required to provide a minimum average setback of 45'-0" which could be met by (1) providing a 30'-0" setback on one side and a 60'-0" setback on the other side; or any combination of setbacks where t/je average minimum setback equaled or exceeded 45'-0"). Furthermore, tl1e maximum allowable height for a hotel mixed-use project will be determined by the Historic Town Center Form Based Code." Staff notes that the proposed hotel's building mass, which includes a three-story building height and setbacks which meet the basic requirements of the Form Based Code, reflects the overall vision of the Historic Town Center Master Plan in developing a more concentrated and economically vital downtown core. Furthermore, both the City's Title 9, Land Use Code and Historic Town Center Form Based Code allow only hotels to be developed to a maximum height of three stories. acknowledging the economic requirements of hotels. Based on the City's recent experience with the Marriott Hotel and the Plaza Banderas Hotel, both approved at three-stories, a two-story height limit would not be sufficient to accommodate hotel development in the Historic Town Center. However, to further reduce the visual impact of the proposed hotel's three-story building mass on the Judge Egan House, the applicant has redesigned the hotel, especially

7 April22, 2014 Pa e 7 of 18 along the Camino Capistrano frontage, to include the following changes: Removed the proposed hotel's tower element and extend the rooftop deck to the southwest corner to reduce the overall building mass. Redesigned the proposed hotel's Camino Capistrano frontage to remove the proposed colonnade feature and replace that with a post-and-beam trellis structure which would provide shading and architectural interest while opening up views of the Egan House looking south along Camino Capistrano. Revised the color palette of the hotel to incorporate darker earth tone colors and shades that reduce the high degree of visual contrast between the proposed hotel and the Judge Egan House. With these proposed design changes to the hotel, staff recommends that the Commission support the requested Master Plan amendment to allow an average setback method for calculating the building setback. 2. Does the project comply with the Historic Town Center's Form Based Code and are the. requested "administrative modifications" requested by the applicant consistent with the overall intent of the Fonm Based Code? The proposed project has been reviewed for compliance with the Form Based Code which respect to building height, building setbacks, frontage type (forecourt) and parking requirements. Staff has detenmined that the project design substantially complies with those provisions with the exception of thos.e standards for which the applicant has requested approval of administrative modifications. Administrative Modifications: The applicant has requested approval of three modifications to the Historic Town Center Form Based Code provisions including two related to the proposed residential townhomes and one related to the proposed hotel (see Attachment 4). Those standards are established by the Fonm Based Code's "TC" (Town Center) Zone District Standards. Table 2A of the Form Based Code limits residential structures to a maximum height of two-stories and 35'-0" whereas the project proposes residential townhouses with a thirdstory mezzanine, but with a maximum height less than 35'-0." The applicant contends that the modification is necessary in order to provide a loft office to accommodate work activities and to provide sufficient building floor area for the residences. The request would result in an increase in overall. building massing and contribute to the overall intensity and character of the proposed project. While the area subject to the modification would be limited in floor area, the increase in the overall building massing, in conjunction with the overall intensity of the project, would be potentially substantial. Staff recommends that the Commission determine that the requested administrative modification to the building height is not warranted and results in over-intensification of development of the project site.

8 Page 8 of 18 The project also requests an administrative modification to allow a minimum 5'-0" rear yard setback and an average 8'-0" rear yard setback for residential structures along the project's perimeter whereas the Form Based Code requires a minimum 10'-0" rear yard setback. The applicant contends that the requested modification to the rear yard setback would provide greater ability to incorporate vertical and horizontal building mass articulation. The City has successfully used this approach with other projects and the resulting design would appear substantially consistent with the overall intent of the Form Based Code as well as the City's Design Guidelines. Thus, staff recommends that the Commission determine that the requested administrative modification to the rear yard setback would be consistent with the overall purpose and intent of the Form Based Code. Finally, the project requests a modification to the parking standards established by the Form Based Code to reduce the required hotel parking from 1.0 space per guest room to 0.8 space per guest room. The requested modification would reduce the parking required for the hotel from 136 to 108 spaces, a total reduction of 28 parking spaces. The City has previously granted parking exceptions to both the Plaza Banderas Hotel project and the Marriott Hotel project to allow the same reduction in the parking standard. Based on the shared parking analysis conducted by the City's traffic consultant, Linscott, law & Greenspan Engineers, the mixed-use nature of the project and the location of the project site within the City's "park-once" area, the project would provide sufficient parking to serve anticipated parking demand of the project despite an overall reduction in parking from 245 to 217 spaces. The shared parking study determined that peak parking demand, not including potential special events that would attract large numbers of non-guests, would generate a maximum need for 216 parking spaces (see Attachment 5). Special events at the hotel could be effectively accommodated through a requirement for a Parking Management Plan (PMP) which has been included as a recommended condition of approval Thus, staff recommends that the Commission determine that the requested administrative modification to the hotel parking standard would be consistent with City's "park once" strategy for the Historic Town Center based on the findings of the City's sharing parking study. 3. Does the project site and architectural design substantially comply with the Citv's Architectural Design Guidelines and the Architectural Control lac) criteria established by Section? Staff have reviewed the proposed project for compliance with the City's Architectural Design Guidelines. Those guidelines establish design policies and recommendations for downtown commercial development including the following design objectives: Reinforce and enhance the City's downtown as one of the primary focal points of the community Contribute to the existing pedestrian-oriented "village-like" environment

9 Page 9 of 18 Complement the scale, proportion and character of development in the surrounding area Establish attractive, inviting, imaginative and functional site arrangement of buildings and parking araas, and a high quality architectural and landscape design which provides proper access, visibility and identity Provide stylistically diverse and creative architectural design solutions which convey a sense of timelessness and elegance Preserve and incorporate natural amenities unique to the site into the project development proposal Preserve and incorporate structures which are distinctive due to their age, cultural significance, or unique architectural style into the project Maintain hillside views to the greatest extent possible As a result of staff and Planning Commission Ad-hoc Subcommittee review, the applicant's architect has made the following notable design revisions to the proposed hotel structure: providing additional architectural detailing and articulation on exterior building elevations (especially the hotel south elevation facing Plaza Mercado); providing a consistent architectural design for residential building blocks (five are proposed); removing the small bell tower elements from the residences; providing enhanced setbacks and landscaping along the Forster Street extension; removing the proposed hotel's tower element and extending the rooftop deck to the southwest corner to reduce the overall building mass: and, redesigning the proposed hotel's Camino Capistrano frontage to remove the proposed colonnade feature and replace that with a post-and-beam trellis structure, While these revisions to the architectural and site design provide substantial compliance with the City's Architectural Design Guidelines for the Historic Town Center, to assure the authenticity of the project and compliance with more detailed provisions related to finish, hardware, doors, windows and similar elements, more detailed review would be appropriate, Staff recommends that the Planning Commission determine that the project

10 Page 10 of 18 substantially would comply with the City's Architectural Design Guidelines subject to a condition requiring that final design plans and details, including the color and materials board, would be subject to review and approval by an appointed Ad-hoc Subcommittee of the Planning Commission. 4. Does the proposed project substantially comply with the Title 9, land Use Code findings for approval of the Conditional Use Permit (CUP), Grading Plan Modification (GPM), Tree Removal Plan (TRP),and the Tentative Tract Map QTM)? Staff have reviewed the proposed project for compliance with the Title 9, land Use Code criteria with respect to the requested planning applications as follows: Conditional Use Permit (proposed hotel use) 1. Is the proposed hotel use and design consistent with the maps and policies of the General Plan? The General Plan establishes the basis for the Historic Town Center Master Plan which identifies the development of hotel/lodging uses in the downtown as an important economic development objective for the downtown. Thus, the proposed hotel use is consistent with the General Plan Land Use Element. 2. Is the proposed hotel use and design consistent with the purpose, intent, and standards of the land Use Code and any applicable specific plan or comprehensive development plan, except as otherwise approved? With the exception of the applicant's requested administrative modification to the parking standard and the requested amendment to the Historic Town Center Master Plan provisions related to the "Esslinger Building and Judge Egan House," the proposed hotel is otherwise consistent with provisions of the Historic Town Center Form Based Code subject to the recommended conditions of approval, especially the draft condition related to special events at the hotel which could impact public parking in the downtown. That draft condition is excerpted in this report under the "ENVIRONMENTAL IMPACT:" section and is contained in the draft conditions of approval for the Conditional Use Permit resolution as Condition Is the site for the proposed hotel use adequate in size and shape to accommodate all yards, open spaces, setbacks, walls and fences, parking and loading areas, fire and building code considerations, trash and recycling enclosures, and other features pertaining to the application? Because of the unique configuration of the property which includes a narrow frontage along Camino Capistrano and the desire to front the hotel use on Camino Capistrano, which requires a three-story building mass, the hotel project requests an amendment to the HTC Master Plan's setback standard. With the exception of the applicant's requested amendment to the Historic Town Center Master Plan provisions related to the "Esslinger Building and Judge Egan House," the proposed hotel would otherwise be of adequate shape to accommodate the proposed hotel use. 4. Is the proposed hotel use and the on-going operation of the use compatible with

11 April22, 2014 Page 11 of 1.8 abutting properties and the permitted uses thereof, and will not generate excessive light, noise, vibration, odors, visual blight, traffic, or other disturbances, nuisances, or hazards? Based on the provisions of the Historic Town Center Master Plan which promote hotel development within the downtown, and based on the fact that adjoining land uses are exclusively office, commercial-retail, restaurant, service and related uses of a commercial nature, the proposed' hotel use would be compatible with abutting properties subject to the draft conditions of approval and the proposed environmental mitigation measures, 5.. Does the hotel site have adequate access and parking to support the use? Based on the shared parking study findings discussed in more detail under the "ENVIRONMENTAL IMPACT:" section of this agenda report, the hotel would provide adequate parking to meet its peak parking demand, Hotel access has been designed and located, especially the main entry, to provide sufficient access. However, the proposed hotel service access which is situated between the hotel and the Judge Egan House will require that service and delivery vehicles to the hotel would need to either back into or out of the proposed service drive onto Camino Capistrano. Staff has included a draft condition requiring traffic control, a loading zone, and imposing time restrictions on service drive use, Grading Modification Plan 1, Are the proposed grading modifications consistent with the General Plan, Land Use Code, Design Guidelines, and applicable specific plan or comprehensive development, including requirements for ridgeline protection, natural landform grading, minimizing use and height of retaining walls, and effective use of landscaping for erosion control and aesthetics? The proposed grading plan concept marginally varies grades over the site by not more than one to two feet with the exception of the southern and eastern edges of the site which propose fill and exposed retaining walls of approximately 5' -0" in height. The final design, finish and landscaping associated with the walls will need to be reviewed by City staff prior to any permit issuance to assure consistency with the City's design guidelines. 2. Are the proposed grading modifications generally consistent with the approved site plan, preliminary grading plan, landscape plan, grading standards, and design concepts of the original project as approved by the reviewing authority? The proposed project proposes a new grading concept for the project site and so, this criteria is not applicable. 3. Will the proposed grading remain consistent and compatible with immediatelyadjacent lots or units, including but not limited to blending of slopes with adjacent property boundaries, rounding of slopes at both top and bottom to blend the grading into the existing terrain, and a design which harmonizes the design with the natural contours of the property ahd surrounding lots? While this criteria would be appropriate to the hillside areas of the community, it is not appropriate nor applicable

12 April22, 2014 Page12of18 to the Historic Town Center. 4. Does the proposed modified grading plan show the location of proposed buildings which shall meet all required minimum setbacks for building as defined in the applicable zone district, and minimum setbacks from the tops and toes of slopes as defined by Section ? With the notable exception of the requested Master Plan Amendment and the administrative modification to the rear yard setback, the proposed project will otherwise comply with all requir-ed building setbacks. 5. Will the proposed modified grading cause adverse impacts to other properties, including but not limited to potential impacts on hydrology, water quality, views, trail easements, or other aspects of development? The proposed project will result in elevating the existing building pad area along the southern and eastern edge of the site by about five feet and proposes a three-story hotel bordering the southern edge of the site adjoining the El Mercado. The proposed project incorporates a water quality infiltration pond along this edge. While this part of the site is presently occupied by an existing commercial building, that building is situated at an elevation about five feet lower than the proposed hotel and is a two-story structure versus the three-story hotel structure. Neither the current site nor proposed project include trees along this edge. In response to staff review, the applicant's architect has revised the hotel's west elevation design to provide enhanced architectural building massing. However, the proposed site design relies on existing specimen trees on the Mercado property to provide visual buffering along this edge of the project. Tree Removal Plan 1, Are the trees proposed for removal unsuitable to the planting area in that the area is too small to accommodate the height, diameter of trunk or canopy, or root zone of the tree, or excessive trees exist on the site requiring thinning to maintain tree health? The project proposes an entirely new development concept for the site and thus, this criteria is not applicable. 2. Are the trees an unsuitable variety for the site in that the species is not a native variety, is not in keeping with the community character of San Juan Capistrano, is of an invasive species, or otherwise conflicts with the intent of this ordinance? The proposed project would remove 71 existing trees including non-native, invasive species such as ficus and pine. However, many of the existing trees on the site including California sycamore, European Olive, and Australian willow are classified as California native or friendly. By contrast, the proposed landscape plan, while it includes several appropriate species, incorporates a number of inappropriate ornamentals. Further, the landscape plan proposes a replacement ratio of less than 1.0 (about 0.8) 3. Will removal of trees have an adverse impact on adjacent properties or the general welfare in that its removal will not adversely impact views, public streetscapes, or

13 April22, 2014 Pae13of18 other aesthetic considerations? The proposed project would remove 71 existing trees from the project site and proposes a replacement ratio of less than 1.0 (about 0.85). The combination of increased building mass along with the reduction in the number trees would have a potentially adverse impact on adjacent properties. Staff recommends that the applicant be required to redesign the preliminary landscape plan to provide a minimum tree replacement ratio of 1.5, incorporate only Cartforn la native or friendly plants in the plant palette, boxing and replant select California sycamore or Olive as opposed to the Fan aloe, and eliminate all proposed turf (i.e. Marathon turf). Furthermore, the redesigned landscape plan should be subject to review and approval by the Development Services Director who may refer the plan to the Planning Commission for review and final action. 4. Have replacement trees been proposed to maintain the urban forest canopy and are the replacement trees more appropriate to the site and to the planting area? As discussed under the prior criteria, the type and number of trees proposed for replanting are neither sufficient nor appropriate to maintain the urban forest canopy. Tentative Tract Map. 1. Is the proposed map consistent with the General Plan and any applicable specific plan or comprehensive development plan? The proposed hotel, commercial-retail, and residential uses are substantial consistent with the Historic Town Center Master Plan and Historic Town Center Form Based Code subject to the approval of the applicant's requested Master Plan amendment and the administrative modifications regarding setbacks, building height and parking. 2. Is the design or improvement of the proposed subdivision consistent with the General Plan and any applicable specific plan or comprehensive development plan? The design of the proposed subdivision would be substantially consistent with the Historic Town Center Master Plan and Historic Town Center Form Based Code subject to the approval of the applicant's requested Master Plan amendment and the administrative modifications regarding setbacks, building height and parking. 3. Is the site physically suitable for the type of development? The project site has been previously designated as "TC" (Town Center) Zone District on the Official Zoning Map, an indication that the City has previously determined that the site is suitable for development of uses permitted within the District and subject to the development standards established for the district subject to the approval of the applicant's requested Master Plan amendment and the administrative modifications regarding setbacks, building height and parking. 4. Is the site physically suitable for the proposed density of development? The Historic Town Center Form Based Code's development standards were designed to create a more intensive, urban development pattern within the core of the downtown including the project site. Those standards allow all new development, including

14 Page 14 of 18 residential and hotel projects, to directly front streets with little or no building setback and up to a height of two-stories except hotels which are permitted to be threestories. Thus, the proposed project site is deemed suitable for the proposed density subject to the approval of the applicant's requested Master Plan amendment and the administrative modifications regarding setbacks, building height and parking, especially building setbacks and height which directly affect the overall intensity of development on the site. 5. Is the design of the subdivision or the proposed improvements likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat? No, based on the Initial Study prepared by the City which complies with the provisions of the California Environmental Quality Act (CEQA). 6. Will the design of the subdivision or the type of [proposed] improvements conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision? No, because the project incorporates the proposed extension of Forster Street through the property as envisioned by the Historic Town Center Master Plan. ENVIRONMENTAL IMPACT: The City previously prepared and certified a Program Environmental Impact Report for the Historic Town Center Master Plan. The City retained Placeworks, an Orange County-based environmental consulting finrn, to prepare the project Initial Study (IS) pursuant to the provisions of the California Environmental Quality Act (CEQA) wh'1ch incorporated, as appropriate, the analysis conducted as part of the Program EIR. Based on the Initial Study's analysis and findings, the City's Environmental Administrator determined that the project impacts could be reduced to a level less than significant and that the project qualifies for a Mitigated Negative Declaration. The Initial Study identifies the project's potentially significant impacts and proposes mitigation measures to reduce those impacts to a less-than-significant level. Land Use Compatibility: The project proposes to develop 33 residential townhousestyle units including 11 which would directly abut the Historic Town Center Park. Because the HTC Park serves as an important community gathering place hosting various community events (i.e., concerts, plays, tree lighting ceremony, community events, expos, etc.), siting homes directly adjoining HTC Park would expose future residents to the noise, lighting and other impacts associated with such events. The City needs to consider the potentia! for future project residents, who may be effected by!he impacts of HTC Park events, to attempt to secure restrictions and/or prohibitions on community events. If that were to occur, the value of HTC Park to the community and its residents could be substantially diminished. Thus, the City must consider the potentia.! adverse impact of the proposed project on the future use of HTC Park as an important community even! and gathering area.

15 Page 15 of 18 The applicant has proposed the use of a "noise easement" along with a real estate disclosure and has provided sample for a quarrying operation in Pleasanton, California (see Attachment 6). The "noise easement" would be a recorded legal instrument over the entire project to the benefit of the City and its residents with respect to use and activities at the park preventing future residents from compelling the City to enforce noise standards and precluding the filing of any civil action against the City to compel the City to restrict or prohibit certain uses or enforce noise and lighting standards for such events. The disclosure would inform prospective home buyers of the Park's nature as a community gathering and event area and disclose the fact that such events will result in noise, lighting, and similar nuisance impacts. While these approaches may offer some means of addressing this issue, they rnay be insufficient, in and of themselves. These provisions would probably only be effective in conjunction with building construction design ofthe residences to assure noise impacts were minimized. As part of the California Environmental Quality Act (CEQA) review, noise impacts were evaluated along with the issue of land use compatibility between tile project's residential component and the Park. The Initial Study determined thaf the project could result in potentially significant noise impacts on future residents and examined several ways to mitigate those impacts through design. As a result, the Initial Study proposes four mitigation measures which include a real estate disclosure requirement, a "noise easement," noise attenuating building design features, and a requirement for central heating, ventilation and air conditioning (HVAC) systems to protect future project residents and hotel patrons. Furthermore, the City's Initial Study concludes that these noise impacts on future project residents and hotel patrons would be reduced to a less-than-significant level by the proposed mitigation. While noise impacts may be effectively mitigated based on the City's noise guidelines and noise standards, the potential risk remains that future project residents would press the City to adopt event restrictions or prohibitions. Parking: Community events conducted at the Historic Town Center Park create substantial parking demand which is supported by the two existing public parking lots along El Camino Real and by the parking lot at the comer of Ortega Highway (SR 74) and El Camino ReaL The proposed project includes planned garage, surface and subterranean parking to accommodate proposed uses. Linscott, Law & Greenspan Engineers' parking analysis determined that the project would require 245 spaces, before considering any shared parking potential The project proposes to provide 217 spaces, a net difference of -28 spaces as a result of the applicant's request for a reduction in the hotel parking standard from 1.0 space to 0.8 spaces per guest room. The requested reduction in the hotel parking standard has been previously approved by the City for the Marriott Hotel and the Plaza Banderas HoteL As previously discussed in this report, Linscott, Law & Greenspan Engineers also performed a "shared parking" analysis which determined that peak parking demand for the entire project would demand at least 216 parking spaces while the project proposes 217 spaces, and thus, would provide sufficient parking.

16 Page 16 of 18 However, the proposed hotel also includes facilities that would accommodate special events such as receptions, seminars, and similar events which could create peak parking demand that would exceed available hotel parking which would result in parking demand for public parking lots along El Camino Real which serve the downtown and Historic Town Center Park events. On those occasions when events would be scheduled to occur at both the hotel and the Park, there could be insufficient parking available which could adversely affect commercial businesses in the downtown. Further, hotel special events could require the use of public parking which has been historically relied on to accommodate Park events. In order to assure sufficient parking remains available to serve events at the Park and future events associated with the hotel, the City needs to have a mechanism that assures that events are coordinated so that anticipated attendance levels do not exceed the capacity of available parking to serve such events. As a condition of approval on the Conditional Use Permit for the "hotel" use, the City should Impose a condition requiring the preparation of a Parking Management Plan (PMP) for hotel events to assure adequate parking remains available for scheduled HTC Park events. The intent is not to prohibit simultaneous events, but to assure that when such events are scheduled to occur, the City has a mechanism to assure that hotel events do not adversely affect scheduled community-wide events at HTC Park. The following draft condition Is provided for consideration: Prior to either scheduling or conducting any special events at the hotel, including but not limited to anniversary/retirement parties, wedding receptions, rehearsal dinners, seminars, and similar events, the hotel operator shall prepare, submit for review, and secure City approval of a Parking Management Plan (PMP). The PMP shall be prepared by a licensed civil engineer or transportation planner specializing in parking management. As part of the PMP, the hotel will establish the maximum allowable attendance for all planned events which shall be identified within the PMP The PMP will address peak parking demand and assure that the operation of hotel event(s) can be sufficiently accommodated by the hotel's parking and will not displace public parking necessary to support downtown commercial businesses nor scheduled events at the Historic Town Center Park. The City shall retain discretion to approve, conditionally approve or deny the Parking Management Plan. The project's Initial Study was prepared in compliance with the prov1s1ons of the California Environmental Quality Act (CEQA) and includes identification and mitigation of potential cultural resource impacts. A records search was conducted on the project site and determined that there are several cultural resources on or near the site. The entire project is situated within an area considered archaeologically sensitive by the City by virtue of Spanish Colonial era and subsequent historic development of the area. Thus, there is a relatively high potential for any grading activity to encounter/uncover potentially significant subsurface cultural resources. Those could include refuse/waste

17 Page 17 of 18 deposits (middens) and pit privies or cisterns associated with the Juanefio adobes, Casa Grande and the Egan House, building/structure footings (e.g. the Mission garden wall, ethno-historic cultural resources), potential burials, or the remnants/foundations of the Juanefio adobe homes. The project site may have the potential to yield historically significant information important to local or regional prehistory or history that would make the site eligible for listing on the California Register of Historic Resources. Consistent with City Council Policy 601, proposed Mitigation Measure CR-1 which provides for archeological and Native American monitoring would reduce potentiafly significant cultural resource impacts to a less-than-significant level. PRIOR REVIEW: On March 11, 2014, the City Council and Planning Commission conducted a joint work session on the proposed project and provided the applicant with extensive review comments, observations, and direction. COMMISSION/COMMITTEE/BOAR'D REVIEW AND RECOMMENDATIONS: The project was reviewed by the Parks, Recreation, and Senior Services Commission on Monday, February 24, 2014, to consider potential effects of the project on HTC Park. After extensive discussion, the Commission approved a motion forwarding the following recommendation to the Planning Commission for consideration: The project's proposed pedestrian access is insufficient, in particular, with respect to proposed access between the project and Historic Town Center Park (i.e. address Americans with Disabilities Act (ADA) accessibility and provide sufficient width). The proposed private access from the rear yards of the proposed residences bordering the HTC Park creates a security concern. Parking for events being conducted simultaneously at the hotel and at HTC Park needs to be addressed to assure adequate parking for Park events remains available. The Cultural Heritage Commission reviewed the proposed project at a special meeting held on March 11, 2014, immediately prior to the City Council-Planning Commission joint worksession. At that time, the Cultural Heritage Commission, by a 3-2 vote, forwarded the project to the Planning Commission with a recommendation that potential impacts of the proposed hotel project on the Judge Egan House be addressed through the following design options: Relocating or removing the proposed bell tower element from the hotel and extending the rooftop deck to the southwest corner of the hotel structure to reduce the overall building mass adjoining the Egan House.

18 P e18of18 Establishing a defined landscape edge along the Egan House property's northerly and easterly property lines adjoining the proposed hotel. Revising the proposed color palette of the hotel to incorporate colors/shades that reduce the degree of visual contrast between the hotel and the Egan House. The Planning Commission created an Ad-hoc Review Subcommittee comprised of Commissioners Roy Nunn and Tim Neely who met with staff, the project architect and the applicant to review the proposed project design and identify design revisions to assure compliance with the City's Architectural Design Guidelines. NOTIFICATION: Pursuant to Title 9, Land Use Code, Section (f), Notification Procedures and City Council Policy (Public Notification Policy), a public meeting notice has been mailed to all adjoining property owners (as listed on the Orange County Real Property Tax Assessment rolls) and posted at three public locations. This agenda item has been provided to the applicant and their representative through posting of the agenda packet on the City's website. ATTACHMENT(S): Attachment 1 - Draft Resolution and Conditions of Approval Attachment 2 - Development Agreement Proposal Attachment 3 - Historic Town Center Master Plan, Vision Plan Attachment 4 - Administrative Modifications, Statement of Justification Attachment 5 - Shared Parking Analysis, Linscott, Law & Greenspan Engineers Attachment 6 - Sample Noise Easement & Disclosure (Quarrying Operation) Attachment 7 - Aerial Photo Attachment 8 - General Plan Land Use Map Attachment 9 - Zoning Map ENCLOSURE(S): Large-scale project plans, 11 x 17.