CITY OF Meeting Date: October 25, 2011 Agenda Item: Community Development Department Planning Division P. O. Box 151560, San Rafael, CA 94915-1560 PHONE: (415) 485-3085/FAX: (415) 485-3184 Case Numbers: ZC11-002, UP11-033; DA11-001; IS11-002 Project Planner: Paul Jensen (415) 485.5064 REPORT TO PLANNING COMMISSION SUBJECT: 750-790 Lindaro Street/781-791 Lincoln Ave (San Rafael Corporate Center) Request(s) for amendments to the approved Planned Development (PD-1754) zoning district, Master Use Permit and Development Agreement for the San Rafael Corporate Center, an approved and largely-developed 401,000 square-foot, general and administrative office complex. The amendments propose to expand the allowable uses to include medical use (up to 68,068 square-foot portion of the approved complex), as well as research and development use. The request includes a reduction from the required parking for the medical use component (5-6% reduction for the office park complex). The project proposes no physical changes or improvements to the approved and largely developed office complex; APN: 013-021-34, 35, 50, 51, 52, 53, 54, & 55; Planned Development (PD-1754) District; SR Corporate Center Phase I, LLC, owner/applicant; File No(s): ZC11-002; UP11-003; DA11-001. EXECUTIVE SUMMARY The project proposes to expand the list of the land uses permitted at the San Rafael Corporate Center, which is located in Downtown San Rafael. The 401,000-square-foot multi-building office park, which is located south of Second Street, is current zoned (PD-1754 District) and approved for general and administrative office use only. Medical use and research and development use are proposed, which require an amendment to the Planned Development (PD-1754) zoning district and to the Master Use Permit approved for the office park. The project proposes a 68,068-square-foot allowance for the medical use, along with a 5-6% reduction in the off-street parking that would be required for this use. The project proposes no physical changes or improvements to the office park development or site. As discussed in this report, staff concludes that the project, as proposed and as conditioned, is consistent with the San Rafael General Plan 2020, and complies with all applicable zoning development standards, as amended. The City Traffic Engineer has reviewed the projected traffic for the addition of these uses finding that operational conditions to local intersections and arterials will not be impacted. Further, the City Traffic Engineer has studied the requested parking reduction for the medical use finding that it is reasonable and justified. Draft resolutions have been prepared by staff (see Attachments 1-4) outlining findings and recommended actions. RECOMMENDATION It is recommended that the Planning Commission adopt the attached resolutions recommending to the City Council adoption of a Negative Declaration, and amendments to the PD-1754 District, Master Use Permit and Development Agreement.
REPORT TO PLANNING COMMISSION - Case Nos: ZC11-002, UP11-033, DA11-001 and IS11-002 Page 2 PROPERTY FACTS Address/Location: 750-790 Lindaro Street, 781-791 Lincoln Parcel Number(s): 013-021-34, 35, 50, 51, 52, 53, 54 & 55 Property Size: 15.54 acres Neighborhood: Downtown Site Characteristics General Plan Designation Zoning Designation Existing Land-Use Project Site: Lindaro Office PD-1754 District Office Park North: Second/Third Mixed Use 2/3 MUE District Commercial East: Park P/OS District Mahon Creek South: Park Industrial P/OS District I District Albert Park Industrial West: Second/Third Mixed use 2/3 MUE District Residential (Albert Lofts) Site Description/Setting: The project site encompasses 15.54-acres of level land located south of Second Street in Downtown San Rafael. The property is bordered by Second Street (major arterial) to the north, Mahon Creek to the east and south, and Andersen Drive to the south. Immediately west of the site is a PG & E substation and a multiple-family residential development (Albert Lofts). Lincoln Avenue and Lindaro Street (collector streets) intersect the project site in a north-south direction, splitting the 15.5-acre property into three large parcels. See attached Vicinity/Site Map. As shown on the attached vicinity/site map, the property is divided into three main parcels: the central parcel (central office building campus); the western parcel (parking lot and structure west of Lindaro Street); and the eastern parcel parking east of Lincoln Avenue. The central and western parcels were formerly owned by PG &E and these parcels were once used (by PG &E) to produce gas and fuel. Due to groundwater and soil contaminants associated with the former gas and fuel processing use, these two parcels are subject to a long-term monitoring program (order) issued by the Department of Toxic Substance Control (DTSC). In association with the DTSC order, a deed restriction is recorded for the central and western parcels, which prohibits residential and child care land uses. The eastern parcel was formerly owned by the City of San Rafael and once was the site of the City Corporation Yard. Neighboring uses include a PG &E substation and Albert Lofts Apartments to the west, Albert Park, Mahon Creek and industrial uses to the south, and commercial uses to the east and north. BACKGROUND In 1998, the City of San Rafael approved a master/development plan for the 15.5-acre site, which permits the development of a 401,000-square-foot office park (San Rafael Corporate Center). The office park is approved for the development of five, 3-4-story office buildings on the central parcel (PD District permits up to 406,000 square feet of office use sited between Lincoln Avenue and Lindaro Streets) and supportive surface and structured parking (total of 1,323 parking spaces) on the western and eastern parcels (see Exhibit 2 for master/development plan). Land use and planning approvals for the office park included: a) establishment of a Planned Development zoning district (PD1754 District) solely applying to the 15.54-acre office park; b) a Master Use Permit; c) an Environmental and Design Review Permit approving the project layout, design and architecture; and d) a Tentative Map authorizing division of the land to create a separate parcel for each office building. As project construction was expected to be phased over many years (which has occurred), City approvals included a Development Agreement between the City and the property owner. The Development Agreement was executed to ensure that land use and planning approvals remain valid for a minimum of 10 years. In 2009, the Development Agreement was extended to vest project build-out to September 28, 2013. The terms of this extension also include an option for an additional extension
REPORT TO PLANNING COMMISSION - Case Nos: ZC11-002, UP11-033, DA11-001 and IS11-002 Page 3 through 2015. Regarding allowable land uses, the PD1754 District and Master Use Permit approve the office park for administrative and general office use only. Medical office use is currently prohibited. To date, the first two phases of the San Rafael Corporate Center office park have been built (Office Buildings A, B, C & D totaling 319,000 square feet, the western parking structure and surface parking totaling 707 parking spaces). The remaining phase of development that has yet to be constructed is one office building (Building E, 82,000 square feet) sited for the corner of Second Street and Lincoln Avenue) and the eastern parking structure (on the eastern parcel - former Corporation Yard site, total of 616 parking spaces). All planning permits and discretionary approvals have been secured for Building E. The eastern parking structure has received preliminary design approval. The final design of this parking structure must be reviewed and recommended for approval by the Design Review Board. The San Rafael Corporate Center office park was subject to extensive environmental review. Prior to the 1998 action, a comprehensive Environmental Impact Report was prepared and ultimately certified by the City (Fair, Isaac Office Park Project Final Environmental Impact Report). The FEIR provided the following conclusions: 1. The office park development would result in three significant, unavoidable adverse environmental impacts to US101 traffic travel through Central San Rafael. Specifically, the office park project would impact: a) southbound traffic during the AM peak along the US101 segments between North San Pedro Road and Lincoln Avenue and between Lincoln and the Central San Rafael exit; and b) northbound traffic during the PM peak along the US101 segment between I-580 and the Central San Rafael exit. At the time, all three highway segments operated at capacity (LOS E/F conditions). In order to approve the office park project, the City was required to make findings of overriding consideration, meaning that the community benefits of the project were weighed against the significant, unavoidable traffic impacts. 2. The office park development would result in a number of potentially significant environmental impacts associated with aesthetics, geology/soils, hydrology/water quality, transportation/traffic, parking, noise, biological resources, air quality, and hazardous materials. The FEIR recommended specific mitigation measures to reduce or eliminate these impacts, which were memorialized in the approval of a Mitigation Monitoring and Reporting Program (MMRP) and required as conditions of project approval. Nearly all of the mitigation measures are linked to site development, so most have been implemented. As discussed above, City action on the San Rafael Corporate Center included the approval and execution of a Development Agreement. This agreement includes a number of agreed requirements and obligations of the developer such as: The installation of needed transportation improvements in the Downtown area (in addition to required traffic mitigation fees). The improvements, which have been installed, include the widening of 2 nd Street (additional travel and turning lanes), widening Lindaro Street and installing a mid-block traffic signal and safe-travel pedestrian crossing between 2 nd Street and Andersen drive, and a pedestrian crossing on Lincoln Avenue. A publicly-accessible park and trail along the southern edge of the office campus abutting Mahon Creek. This area is open to the public from dawn to dusk. Public use of ground level conference rooms for meetings and events. Public parking use of the western parking lot and garage during evening hours and weekends.
REPORT TO PLANNING COMMISSION - Case Nos: ZC11-002, UP11-033, DA11-001 and IS11-002 Page 4 PROJECT DESCRIPTION Expand Allowable Land Uses The project proposes to introduce medical and research and development uses to the mix of allowable office uses for the San Rafael Corporate Center. The expanded uses are described as follows: 1. Medical Use. Medical use is defined as medical office, clinic or medical laboratory (daytime, testing services for patients/visitors). A total of 68,068 square feet of medical use is proposed as an allowance, meaning that of the total 401,000 square feet of office park area currently approved for general and administrative office use, up to 68,068 square feet could be used for medical use. The modification proposes that the medical use allowance be generally applied to the office park and that it not be approved for any one building or concentrated in any one area of the park site. 2. Research and Development. Research and Development use is defined as use engaged in scientific, medical or technological research with limited product testing and production. This use excludes full production industrial-type manufacturing and generally operates similar to and characteristic of low-intensity, general office use. Medical laboratories established for research (as opposed to labs providing testing services for patients/visitors) would be considered a research and development use. Neither uses are in conflict with the land use deed restriction recorded on the property. Further, the project proposes no physical changes to the approved San Rafael Corporate Center office park. No changes are proposed to the approved site plan, architecture, building layout or final construction phasing that would trigger and amendment to the approved Environmental and Design Review Permit. Parking Reduction for Proposed Medical Use The proposal includes a parking reduction request for the medical use component. The research and development use component shares the same parking requirement as the currently approved general and administrative office use (3.3 spaces/1000 gross square feet). The parking reduction for medical use proposes application of the 3.3 parking space per 1,000 gross building square foot standard, which is the parking ratio that is currently required and approved for multiple-tenant, general and administrative office use at this site. The San Rafael Municipal Code requires a 4.4 parking space per 1,000 gross building square footage ratio for medical use. The proposed parking rate would result in a parking reduction of 5-6% from that required under the City code for the entire office park complex. The following table provides a breakdown on the current and proposed parking, as well as the reduction amount that is being requested for approval: Use APPROVED PROJECT General & Administrative Office PROPOSED PROJECT General & Administrative Office; Research & Development Building Square Footage City- Required Parking Rate+ 401,000 sf 3.3 spaces/ 1000 sf 332,932 sf 3.3 spaces/ 1,000 sf Required Parking 1,323 spaces 1,098 Medical Use 68,068 sf 4.4 spaces/ 302 1000 sf TOTAL: 1,400 + San Rafael Municipal Code Chapter 14.18 (Parking) Proposed Parking 1,323 Spaces 1,323 Spaces Parking Reduction NA 77 spaces (5-6% reduction)
REPORT TO PLANNING COMMISSION - Case Nos: ZC11-002, UP11-033, DA11-001 and IS11-002 Page 5 Planning Applications: The project requires the following actions: Amendment to PD District Zoning (ZC11-002). An amendment to the current PD1754 District zoning is required to allow medical and research and development uses. As noted above, the current zoning limits the office park use to administrative and general office use. Amendment to Master Use Permit (UP11-033). An amendment to the Master Use Permit is required to allow medical and research and development uses. As noted above, the current Master Use Permit (UP97-10b) limits the approved land uses to administrative and general office. The amendment would permit a use mix that includes up to 68,068 square feet of medical use in the office park. Further, the amendment to the Master Use Permit is requested to approve the proposed parking reduction for medical use. Amendment to Development Agreement (DA11-001). An amendment to the executed Development Agreement is proposed to incorporate the currently proposed use mix. In addition, other terms are proposed to be amended as they are obsolete or need to reflect current ordinance numbers. ANALYSIS San Rafael General Plan 2020 Consistency: The project has been reviewed for consistency with the San Rafael General Plan 2020. The proposed medical and research and development uses would be consistent with the General Plan goals and policies that are pertinent to the site and use. A summary of the project s consistency with key policies (from the Land Use, Circulation, Neighborhood and Sustainability Elements) is provided as follows: LU-23. Land Use Map and Categories. The San Rafael General Plan 2020 has adopted the Lindaro Office land use designation for the project site. Response: Consistent. The Lindaro Office land use designation permits a variety of land uses including, among others, office and hotel uses that are intended to promote and support employment in Downtown San Rafael. Medical and research and development land uses are commonly found in and around Downtown and would further promote visitors to the area. C-5. Traffic Level of Service. Circulation Element C-5 sets level of service (LOS) standards for local, signalized intersections and arterial segments. A LOS E standard is adopted for Downtown San Rafael. Response: Consistent. A traffic study has been completed finding that the proposed, expanded land uses would not impact or change the LOS conditions at local signalized intersections or along segments of Second and Third Streets, which are arterial streets. NH-38. Lindaro Office District. This policy encourages a mix of compatible land uses for the office park site, and City-sanctioned street closures for festivals, parades, and block parties. Response: Consistent. The proposed project would expand the allowable land uses for the San Rafael Corporate Center, which would encourage increased employment success in Downtown San Rafael.
REPORT TO PLANNING COMMISSION - Case Nos: ZC11-002, UP11-033, DA11-001 and IS11-002 Page 6 SU-1. Land Use. Sustainability Element Policy SU-1 encourages land uses that increase commercial intensities (e.g., employment) within walking distance of high frequency transit centers and corridors. Response: Consistent. The project proposed to broaden the mix of allowable uses at the Corporate Center, which is in immediate proximity and walking distance to the Bettini Transit Center and planned SMART rail station. Zoning Ordinance Consistency: Amendment to PD-1754 District The project site is solely regulated by the Planned Development (PD-1754) zoning district that is adopted for the San Rafael Corporate Center. The proposed amendments to the PD-1754 District would expand the allowable uses at the project site; these uses are consistent with the San Rafael General Plan 2020. The land uses and development standards for this zoning district are listed in Exhibit A of the PD-1754 District ordinance. Amendments to Exhibit A of this ordinance are proposed (see Attachment 2), which include the following: 1. The expanded land uses (medical and research and development). 2. Revisions to the development standards for required on-site parking. The revisions proposed to eliminate the minimum parking requirement of 3 parking spaces per 1,000 square feet of gross building area (initially required for Fair, Isaac Company, a single-campus tenant), but maintain the 3.3 parking space per 1,000 square foot standard required for a multiple-tenant campus. The proposed parking standard would apply to all allowable uses. 3. Edits to update information such as new permit file numbers, updated reference dates and corrected information about overall office park square footage (build-out at 401,000 sf instead of 406,000 sf). Please note that the Terms section of Exhibit A has been deleted. This section was prepared and adopted prior to the execution of the Development Agreement between the City and the property owner, so this section is now moot. Use Consistency with Zoning As amended, the proposed medical and research and development land uses would be consistent with the PD-1754 District. Amendments to the Master Use Permit are proposed and presented in the attached draft resolution (Attachment 3), which include the following: 1. Condition 1 (pages 3-4 and 3-5) has been revised to list the three allowable land uses. As medical use would result in the generation of new AM and PM peak hour trips, condition 1b requires the payment of citywide traffic mitigation fees that would be required for new medical use tenants as the initial square footage allowance is filled. This fee would be paid as the first medical tenants occupy office space, until the 68,068 square feet of medical use occupancy has been reached. Once the medical use allowance has been reached, any future change in use from an existing medical use to another medical use, no traffic mitigation fees would be required. 2. Condition 5 (page 3-7) addresses the revisions in the off-street parking to specify a required ratio of 3.3 parking spaces per 1,000 gross square feet of building area. As a parking reduction is proposed for the medical use component, the condition requires periodic monitoring to ensure that the parking supply exceeds demand. The condition also includes contingencies measures in the event addition parking is needed to meet demand. See separate sub-section below for an expanded discussion of the parking reduction.
REPORT TO PLANNING COMMISSION - Case Nos: ZC11-002, UP11-033, DA11-001 and IS11-002 Page 7 3. Condition 7 (page 3-6) addresses the Transportation Systems Management Program (TSM) that was required with the initial approval of the office park. Since then, a TSM program has been prepared and approved by the City. Condition 7 has been revised to acknowledge the TSM approval. 4. No changes have been made to the other, presently approved Master Use Permit conditions. Other conditions which remain unchanged include condition 4 (pages 3-5 and 3-6). Condition 4 requires the property owner to: a) maintain and provide public access to the private park area fronting Mahon Creek; and b) allow public use of the private park area and 2,500 square feet of conference and meeting room space in Building A (790 Lindaro Street) for special events and activities. Parking Reduction Consistent with SRMC Section 14.18.040B, the City Traffic Engineer has studied the parking needs for the project finding that the 5-6% parking reduction is justified and appropriate for the following reasons: 1. The currently adopted standard of 3.3 parking spaces per 1,000 square feet of building area is consistent with the medical use parking standard studied and recommended by the Institute of Transportation Engineers (ITE). The ITE standards are based on case studies of developed land uses, and are widely used by local agencies and licensed traffic engineers. 2. The 5-6% reduction in the parking requirement is a nominal amount. Further, such reductions are encouraged when a large site is developed and occupied with a mix of land uses that have different peaks in parking demand. 3. The approvals and agreements established for the San Rafael Corporate Center require that the existing western parking lot and structure be made available for public use during the evening hours and on weekends. The parking reduction would not conflict with this agreement in that the peak parking use periods for medical use are during weekdays. 4. The San Rafael Corporate Center is in immediate proximity to the Bettini Transit Center (mass transit hub for Marin County) and the planned SMART rail station. The immediate access to mass transit reduces parking demand, which appropriately supports lower parking standards. Development Agreement The revisions to the Development Agreement are outlined in the attached, draft resolution (Attachment 4). The revisions are limited to incorporation of the expanded land uses and minor revisions to terms. No major changes to the Development Agreement are proposed. ENVIRONMENTAL DETERMINATION The initial review and approval for the San Rafael Corporate Center development was subject to a lengthy and technical environmental review process. As discussed in the Background section of this staff report, in 1998 the Fair, Isaac Final Environmental Impact Report (FEIR) was prepared (and certified) assessing numerous issues and topic areas associated with the development of this office park. The proposed addition of medical and research and development land uses to the office park requires an amendment to the Planned Development (PD-1754) District and Development Agreement, which are subject to environmental review. Per California Environmental Quality Act (CEQA) Guidelines Sections 15063 (Initial Study), an Initial Study has been prepared finding that the project will not result in any potentially significant environmental impacts, nor result in new mitigation measures based on the following:
REPORT TO PLANNING COMMISSION - Case Nos: ZC11-002, UP11-033, DA11-001 and IS11-002 Page 8 1. The project was reviewed against impacts identified and mitigation measures included in the certified 1998 FEIR. The purpose of this review was to determine if the project would result in: new significant impacts; an increase in the severity of impacts; or new or expanded mitigation measures from those analyzed and determined in the 1998 FEIR. This review has concluded that none of the conditions analyzed under the FEIR have changed, nor does the proposed project result in any significant environmental impacts that require new or expanded mitigation measures. In addition, since the 1998 FEIR certification and approval of the project, the US 101 Gap Closure Project (additional travel lanes, HOV lanes, etc. completed by Caltrans) has been completed for the US 101 segments through the Central San Rafael. As a result, the significant, unavoidable traffic conditions for the highway segments have been corrected and these segments now operate at acceptable service levels. Therefore, no new or additional findings of overriding consideration are required to approve the proposed land uses. 2. A traffic study was prepared by the City Traffic Engineer to analyze trip generation and potential impacts on the local intersections. The City Traffic Engineer focused this study on the proposed medical use (68,068 square foot allowance) and did not complete traffic modeling for the proposed research and development use. It was concluded that the introduction of research and development (as defined above) would result in trip generation and distribution similar to or less than the currently approved administrative and general office use; therefore, this use is part of the baseline conditions for study. The traffic study determined that the allowance for up to 68,068 square feet of building area for medical use would generate up to 51 AM and 164 PM peak hour trips. The study modeled the projected traffic finding that the increase in trips would not change the LOS conditions at local, signalized intersections or arterial segments. As discussed above, the medical use would be subject to citywide traffic mitigation fees, which is outlined in the amendments to Master Use Permit UP11-033 (Attachment 3). 3. A quantitative greenhouse gas emissions (GHG) analysis was completed. The analysis concludes that the collective annual emissions from the project fall below the threshold for significant GHG emission impacts established by the Bay Area Air Quality Management District. Consistent with CEQA Guidelines Section 15073, the Initial Study/Negative Declaration was published and made available for a 20-day public review period. The public review period closes with the closure of the October 25, 2011 Planning Commission public hearing. To date, the City has received no comments on the Initial Study/Negative Declaration. NEIGHBORHOOD MEETING / CORRESPONDENCE No neighborhood meeting was held on this project. A Notice of Public Hearing was mailed to all property owners and occupants within a 400-foot radius of the subject site, numerous Homeowners Associations, and all other interested parties, 20 calendar days prior to the date of all meetings, including this hearing. (Exhibit 5). To date, no correspondence has been received. OPTIONS The Planning Commission has the following options: 1. Recommend approval of the applications as recommended. 2. Recommend approval of the applications with certain modifications, changes or additional conditions of approval.
REPORT TO PLANNING COMMISSION - Case Nos: ZC11-002, UP11-033, DA11-001 and IS11-002 Page 9 3. Continue the applications for additional information or response to the Commission comments or concerns. 4. Deny the project applications and direct staff to return with a revised resolution. EXHIBITS Vicinity/Location Map 1. Draft Resolution Recommending to the City Council the Adoption of a Negative Declaration 2. Draft Resolution Recommending to the City Council the Adoption of an Amendment to the PD-1754 District 3. Draft Resolution Recommending to the City Council the Approval of an Amendment to Master Use Permit 4. Draft Resolution Recommending to the City Council the Adoption of an Amendment the Development Agreement 5. Public hearing notice Initial Study/Negative Declaration previously distributed to Planning Commission (on file with Community Development Department W:/.../San Rafael Corporate Center/srcc.PC Staff Report_10 25 11