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2022-03-15 CC Agenda - Additional Information related to Item #C14 - Staff Report - Exhibit 132022-03-15 CC AGENA PACKET ADDITIONAL INFORMATION RELATED TO ITEM #C14 - CC REPORT EXHIBIT 13 Harada, Patricia From: Weaver, Tracy (City Clerk) Sent: Tuesday, March 15, 2022 2:06 PM To: ALL ELECTED OFFICIALS; George, Darrell; Hensley, Mark Cc: *ALL CITY CLERKS Subject: FW: Item 14 - Updated staff report attachment No. 13 (Planning Commission Staff Report Attachments: EA 1248 - CC Report Exhibit 13 - Planning Commission Staff Report (updated).pdf Council, Please see email below from Paul Samaras, Principal Planner regarding Public Hearing item #14. Thank you, Tracy Weaver I City Clerk City of El Segundo 350 Main Street El Segundo CA 90245 310.524.2305 j tweaver@ele.gundo..org f www.elsegundo.org ELSE GUNDO Where big ide-US lalu ufr. From: Samaras, Paul <Paamaras@elsegundo.org> Sent: Tuesday, March 15, 2022 2:03 PM To: Weaver, Tracy (City Clerk) <tweaver@elsegundo.org> Cc: Allen, Michael <mallen@elsegundo.org>; Schonborn, Eduardo <eschonborn@elsegundo.org> Subject: Item 14 - Updated staff report attachment No. 13 (Planning Commission Staff Report Hello Tracy, Per our conversation, I am sending you attachment No. 13 for the Pacific Coast Commons project (the February 10th Planning Commission report). The Planning Commission report that was attached to the packet was missing several pages, so I am sending you the full report this time. I will appreciate it if you can forward to Council and post on the web. Thank you, Paul Samaras, AICP ) Principal Planner City of El Segundo Development Services Department 350 Main Street, El Segundo, CA 90245 www.elseeundo.orF, I EISe undoBusiness.com I Destination ElSeeundo.com ELSEGUNDO 11'9»•re• hid iric•a� �akr uff'. CITY OF E L S E GU N D O Planning Commission Agenda Statement Meeting Date: February 10, 2022 Agenda Heading: Continued public hearing TITLE: Proposed Pacific Coast Commons Specific Plan and Mixed -use Commercial and Residential Development Project to Include 263 Residential Units and 11,252 square feet of Commercial Space at 475-629 North Pacific Coast Highway (PCH). RECOMMENDATION: It is recommended the Planning Commission 1) Adopt Resolution No. 2905, recommending the City Council certify the EIR for the Pacific Coast Commons Specific Plan and Development Project; 2) Adopt Resolution No. 2905, recommending that the City Council approve General Plan Amendment No. GPA 19-01, Subdivision No. SUB 19-03 (Vesting Tentative Tract Map), Site Plan Review No. 19-01, Parking Demand Study, and Waiver of public right-of-way dedications for the Pacific Coast Commons Specific Plan and mixed -use development project; and, 3) Adopt Resolution No. 2905, recommending that the City Council adopt an Ordinance adopting the Pacific Coast Commons Specific plan (SP 19-01), approving a zone change (ZC 19-01), a zone text amendment (ZTA 19-08), and a Development Agreement (DA 19-02); 4) Adopt Resolution No. 2906, recommending that the City Council approve modifications to Conditional Use Permit No. 14-01 for the Aloft Hotel; 5) Adopt Resolution No. 2907, recommending that the City Council approve modifications to Conditional Use Permit No. 14-02 for the Fairfield Inn and Suites Hotel. INTRODUCTION: On November 18, 2021, at the applicant's request, the Planning Commission continued the item to December 9, 2021. Although the item was continued to a date certain, staff provided full notice again for the December 9, 2021 meeting. The day prior to the hearing, staff received lengthy correspondence from two legal firms commenting on the Environmental Impact Report (EIR) for the project. On the day of the hearing, the Planning Commission received oral testimony from members of the public that were EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 2 of 35 present at the meeting. Following the public testimony, the Planning Commission continued the item to a date uncertain to allow staff time to review the correspondence and prepare responses. This report updates and replaces the analysis in the prior staff report for the December 9, 2021 meeting. It also includes the written correspondence received prior to the December 9, 2021 meeting, a summary of the oral testimony received during the meeting, and staff's responses to all the written and oral comments. BACKGROUND: The applicant, BRE El Segundo HOLDCO LLC, submitted an application for development of a mixed use project including commercial and residential uses on property generally located between Holly Avenue on the south, Indiana Street to the west, Palm Avenue to the north and North PCH to the east (see Figure 1, below). The property is currently occupied by two hotels (Aloft Hotel and Fairfield Inn and Suites), a vacant food and beverage building (former Hacienda hotel restaurant), and two open parking lots that provide parking for the two hotels. The proposed mixed use project involves demolition of the existing food and beverage building and the construction of four new buildings consisting of 257 apartment units, 6 townhome condominium units, 11,252 square feet (sf) of commercial uses, and parking structures containing 792 parking spaces. Of the total 263 residential units, 32 are proposed as affordable housing units, further described below. 2 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 3 of 35 High density residential uses are not currently permitted under the present General Plan Land Use designations for the site. Therefore, the overall project/request includes an application for a General Plan Amendment. Other applications associated with the project include a Zone Change, Zone Text Amendment, and Specific Plan. The proposed entitlements, including the Specific Plan, Development Agreement and other entitlements are described in detail in the following sections of this report. SITE DESCRIPTION' The project site encompasses a "super -block" at 475-629 North Pacific Coast Highway (PCH) measuring 6.38 acres. The site is bounded by PCH, Holly Avenue, Indiana Street, and Palm Avenue, and bisected by Mariposa Avenue. Illustrated in Figures 2 and 3 below, the portion of the site south of Mariposa Avenue (South Site) has a General Plan Land Use designation of General Commercial and a Zoning designation of General Commercial (C-3). The South Site is currently improved with a 175-space parking lot; Aloft, a 246-room hotel; Fairfield Inn and Suites, a 350-room hotel; and a 41,660 sf vacant food and beverage building that previously operated as part of the Hacienda Hotel. Illustrated in Figures 2 and 3 below, the portion of the site north of Mariposa Avenue (North Site) has a General Plan Land Use Designation of Parking and a Zoning designation of Parking (P). The North Site is currently improved with a 236-space surface parking lot, providing 213 spaces covenanted to the Fairfield Inn & Suites and 23 spaces covenanted to the Aloft hotel. The 7-Eleven/Unocal 76 gas station and Carl's Jr restaurant located at the corner of PCH and Mariposa Avenue and PCH and Palm Avenue respectively are not part of the project site. Surrounding Zoning and Uses EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 4 of 35 The properties immediately west of the project site are zoned Multi -Family Residential (R- 3) and are developed with multi -family residential uses (apartments and condominium). The properties north of the site are in the R-3 and C-3 zones and are occupied by residential and commercial uses, including an existing fast-food restaurant and a vacant restaurant building. The properties east of the site, across PCH, are in the Corporate Office (CO) and C-3 zones and developed with office, retail, restaurant, and other commercial uses. The properties south of the site are in the C-3 and Smoky Hollow -East (SH-E) zones and occupied by a pharmacy, restaurant, and office uses. Figure No. 3 below illustrates the current zoning on and around the subject site. - - _ ` __ __Pe X/ PROJECT DESCRIPTION: Entitlement Applications The development project consists of a high -density mixed -use development, including 263 residential units and 11,252 sf of commercial space. High density residential uses are not permitted under the present General Plan Land Use designations for the site. Therefore, the overall project/request includes an application for a General Plan Amendment and other entitlements. Details of each application are provided below: General Plan Amendment (GPA 19-01). A General Plan Amendment is proposed to create a new General Plan Land Use designation titled "Pacific Coast Commons Specific Plan (PCCSP)", which will replace the current General Commercial and Parking designations for the site (See Resolution Exhibit F). In addition, the proposed General Plan Land Use Element text will be modified to include a description of the new designation in the Land Use Plan section (See Resolution Exhibits C, D, and E). 4 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 5 of 35 Zone Change (ZC 19-01). The zone change application is proposed to ensure that the Zoning Map designation for the site is consistent with the General Plan Land Use designation. Accordingly, the Zoning Map will change to replace the current General Commercial (C-3) and Parking (P) zoning designations for the site with a new PCCSP designation (See Resolution Exhibit B). Zone Text Amendment (ZTA 19-08)_ The proposed Zone Text Amendment amends Zoning Code Section 15-3-2(A) to add a new Specific Plan Zone titled "Pacific Coast Commons Specific Plan" along with the new land use districts within the proposed Specific Plan. Specific Plan (SP 19-01). A specific plan is a tool for the systematic implementation of the general plan that creates carefully tailored land use regulations within particular areas of the City. All future development plans and entitlements within a specific plan boundary must be consistent with the standards set forth in the adopted specific plan, even when they may be different from the general regulations contained in the El Segundo Municipal Code (ESMC). The proposed PCCSP establishes the regulations necessary to implement the proposed development project and maintain the conforming status of the existing hotel uses. The Specific Plan document covers the following regulatory areas, which are discussed in more detail below: 1) Specific Plan Land Use Plan 2) Design guidelines 3) Permitted uses and development standards 4) Administration/Site Plan Review procedures 1) Specific Plan Land Use Plan. The applicant proposes to create five land use districts (or subareas) as illustrated below in Figure 4. 5 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 6 of 35 F,iaure NO. 4 - bvecitic clan Lana use uisincis one {' PCC-MU-1 PCC-CO�M-1 PCC-COM-2 j PCC- IJI COM 3 - - IIiV6a�ei1ld „ti . PCC Mixed -Use 1 (PCC MU-1) — This land use district measures 1.24 net acres and includes the existing surface parking lot for the Aloft Hotel, but not the hotel itself. It is located at the southernmost parcel with frontage on PCH, Holly Avenue, and Indiana Avenue. The proposed PCC MU-1 land use district allows for development of multi- family residential uses (apartments) and commercial uses. Within the PCC MU-1 district, the applicant proposes developing 120 apartment units, 5,756 gross sf of commercial space, and an 8-level parking structure accommodating 336 parking spaces. The name for this project sub -area is "PCC-South," and additional details of the proposed development concept within this district is provided below. PCC Commercial-1 (PCC COM-1) — This land use district measures 0.95 net acre and is located northerly and adjacent to PCC MU-1, fronting along PCH and Indiana Avenue. The existing Aloft Hotel is located within this land use designation, which allows for hotel and several commercial uses. Within the PCC COM-1 district, the applicant proposes to replace existing non- conforming fences, such as chain -link fencing, with decorative fencing design and material at the existing hotel site. Thus, since the applicant does not propose to remodel or rehabilitate the existing hotel at the present time, no construction activity occurs within this district. PCC Commercial-2 (PCC COM-2) — This land use district measures 1.55 net acres and is located north of and adjacent to PCC COM-1 and fronts on PCH and Indiana Avenue. The existing Fairfield Inn and Suites is located within this land use designation, which allows for hotel and several commercial uses. 0 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 7 of 35 Within the PCC COM-2 district, the applicant proposes to replace existing non- conforming fences, such as chain -link fencing, with decorative fencing design and material at the existing hotel site. Thus, since the applicant does not propose to remodel or rehabilitate the existing hotel at the present time, no construction activity will occur within this district. PCC Commercial-3 (PCC COM-3) — This land use district measures 0.73 net acres and is located north of and adjacent to PCC COM-2 and fronts on PCH, Indiana Avenue, and Mariposa Avenue. The existing Fairfield Inn and Suites hotel food and beverage building is located within this land use designation, which allows for hotel and several commercial uses. Within the PCC COM-3 district, the applicant proposes to demolish the existing food and beverage building and replace it with a new 5-level parking structure for 215 parking spaces and construct 3,273 gross square feet of commercial space. The applicant also proposes to construct a dedicated right turn lane on the south side of Mariposa Avenue. The name for this component of the development project is "Fairfield Parking" and additional details of the proposed development concept within this district is provided below. PCC Mixed -Use 2 (PCC MU-2) — Referred to as the North Site, this land use district measures 1.81 net acres and is the northernmost parcel in the project site and is located north of Mariposa Avenue, south of Palm Avenue, and west of PCH. The existing gas station and fast-food restaurant on this block are not part of the project site and are owned by different owners. This land use designation allows for residential and several commercial uses. Within the PCC MU-2 district, the applicant proposes constructing 137 apartment units, 2,223 gross sf of commercial space, and a 6-level parking structure for 241 parking spaces. The applicant also proposes to develop six townhomes, with self- contained 2-car garages, on another parcel adjacent to Palm Avenue. The name for this component of the development project is "PCC-North," and additional details of the proposed development concept within this district is provided below. 2) Specific Plan Design Guidelines The proposed Design Guidelines are intended as guidelines and, thus, are not development regulations. Therefore, strict compliance is not required. The design guidelines apply only to new development within the Specific Plan area, are used as metrics to determine when and if future development is consistent with the intent of the Specific Plan, and cover the following 10 design areas: a) Site Planning b) Access and Parking fl EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 8 of 35 c) Architecture/Orientation/Massing d) Color and Materials e) Screening and Mechanical Equipment f) Parking Structures g) Landscaping h) Walls and Fences i) Lighting Design j) Signage 3) Specific Plan Development Standards The Development Standards section lists in detail the regulations in 11 areas. Strict compliance is required and would apply to new development, additions, and redevelopment within the Specific Plan area: a) Permitted Uses b) Development Standards c) Circulation d) Parking and Loading e) Landscaping f) Common Recreation Facilities/Open Space and Private Open Space g) Public Safety h) Signage i) Sustainability j) Enclosed and Unenclosed Uses k) Non -Conforming Uses and Buildings 4) Specific Plan Administration The Administration section includes provisions for the following: a) Introduction b) Municipal Code References c) Modifications E. EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 9 of 35 d) Site Plan Review e) Amendments f) Infrastructure Improvements/Coordination g) Financing Measures h) California Environmental Quality Act Compliance Site Plan Review SPR 19-01. Proposed PCCSP Section VII(D) requires approval of a Site Plan Review application for the proposed development project. This section of the staff report provides a physical description and evaluation of the development project. Development Proposal The applicant proposes to develop the Pacific Coast Commons mixed -use project on three districts comprised of two existing surface parking lots and an underutilized food and beverage hall as shown in Figure No. 5 below (PCC-South, Fairfield Parking, and PCC-North). Commercial uses are proposed on all three sub -areas, and residential uses on two sub -areas. The project exhibits contemporary design features and modulated building surfaces to enhance shadow lines and architectural features. The development project and Specific Plan development standards are summarized in the table below. PCC-South (PCC MU-1 DistricVSubarea): Bordered by PCH, Holly Avenue, Indiana Street, and the Aloft Hotel to the north, the proposed development at PCC-South includes a mixed -use 6-story building with 120 apartment units (105 market rate units and 15 affordable housing units), 5,756 gross sf of commercial space, and an 8-level parking structure containing 336 parking spaces as illustrated in Figure No. 6, below. The building will measure 72-feet in height as measured from lowest grade along PCH to top of parapet, and 83'-6" in height as measured from Indiana Street and Holly Avenue to top of parapet. In accordance with the proposed PCCSP, public and private open space will be provided. PCC-South features a private open-air courtyard (approximately 41'x70'), enclosed on all four sides by six floors of apartments, a large rooftop deck/pool area, a EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 10 of 35 community room, and private balconies for most units. The applicant also proposes private landscaping (ground cover and trees) along the outer edges of the built structure(s) as well as public street trees along the southern portion of PCH, Holly Avenue, and Indiana Street. Climbing fig plants will be added at certain locations along the parking structure facing Indiana Street. Figure No. 6 — PCC-South Rendering FF FF -�j Fairfield Parking (PCC COM-3 District/Subarea): Bordered by PCH, Indiana Street, Mariposa Avenue, and the Aloft Hotel to the south, the proposed development incudes a 5-level parking structure accommodating 215 parking spaces and 3,273 gross sf of commercial space as illustrated in Figure No. 7 below. The building will measure 49.75- feet in height as measured from lowest grade along PCH to top of parapet, and 54'-6" in height as measured from lowest grade along Indiana Street to top of parapet. The applicant also proposes a 2-level "green wall", along the parking structure facing Indiana Street. The new parking structure will serve the parking needs of both Aloft hotel and Fairfield Inn that are currently encumbered on another parcel. The new structure will also serve the parking needs of the commercial uses and guest parking for the residential uses. 10 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 11 of 35 r1gUre No. / — raimew rarKlfly MUIlUerlfl y 1�llliiillil��. I�Ilxl1�!lllilli� ilk dl PCC-North (PCC MU-2 District/Subarea): Encompassing the existing surface parking lot and fire lane in the area north of Mariposa Avenue generally bounded by Carl's Jr. and the 7-Eleven/Union 76 Gas Station, the proposed development includes a 6-story mixed - use building with 137 apartment units (120 market rate units and 17 affordable housing units), 2,223 gross sf of commercial space, and a 6-level parking structure containing 252 parking spaces as illustrated in Figure No. 8 below. The proposed building will be 74-feet in height as measured from lowest grade along Mariposa Avenue, and 72'-6" as measured from lowest grade along PCH to top of parapet. Fiqure No. 8 — PCC North Renderin kirs dl-l- 11 ff FF 11 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 12 of 35 Townhomes Six townhomes with 2-car garages are also proposed on a separate lot within PCC-North, as illustrated in Figure No. 9 below. The proposed building height, from lowest grade, is 44.7-feet along Palm Avenue to top of parapet and 47'-6" along the adjacent grade, south of the building. In accordance with the proposed PCCSP, public and private open space are provided. The proposal includes a private open-air courtyard (approximately 31'x51'), enclosed on all four sides by six floors of apartments and parking levels, a large rooftop deck/pool area, two community rooms, and private balconies for most units. The applicant is proposing to add private landscaping (ground cover and trees) along the outer edges of the built structure(s). Figure No. 9 — I ownnomes Kenaerin fi C T7 I 1 JL Y 1 a S i.sz n 1 Table No. 1 below provides a breakdown of the project's parking, floor area, number of units, and development intensity in each sub -area where new construction is proposed. 12 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 13 of 35 Table No. 1 - Specific Plan and Proiect Development IntensitV/Summary Use Uri ts; NUrnber of Parking Spaces ConceDzual sitc- P:an BoildingArea fin square feet3 I Soacilc Plan Maximum 6wldout Building Area On scriare Feel) Parcel Square Footage age FA D%yelling Units per Acre Net Area Gross Area t Area ` Cross Area fee Now Development PCC Mixed. Use-1 (PM South) Multi -Family Residential 120 units 136,571 140,794 139,917 144,244 - - Commercial - 5,583 5,756 5,583 5,756 - Parking structure 336 spaces _ - PCC MU-1 Total 142,154 146,550 145,500 150,000 54,072 2.56 96.70 PCC Cammerciar-3 (Fairfield Parking) Commercial - 3,175 3,273 3,175 3,273 - Parking structure 215 spaces _ - _ Lobby - 1,170 1,206 1,675 1,727 - - PCC COM-3 Total 4,345 4,479 4,850 5,000 32,254 0.16 PCC Mixed-Use-2 (PCC - North) Multi -Family Residential 137 units 159,062 163,472 167,754 172,433 66,241 90.07 Commercial 2,156 2,223 2,156 2,223 Parking structure 241 spaces _ Townhomes 6 units 9,540 10,344 1 9,540 10,344 13,649 19.17 PCC MU-2 Total 170,758 176,039 179,450 185,000 79,890 2.25 77.97 33.7.257 327,068 329.800 .340,000 As illustrated in the table above, the proposed project site plan complies with the residential density and overall floor area ratio (FAR) limits of the Specific Plan. Subdivision SUB 19-03. Construction of the proposed development requires consolidation and reconfiguration of the existing parcels on the subject property to ensure that the new buildings do not cross legal parcel lines. As a result, the applicant has submitted an application for a Vesting Tentative Tract Map (VTTM 82806). The vesting tentative tract map reconfigures, the existing 12 lots south of Mariposa Avenue and the 3 parcels (4 lots) north of Mariposa Avenue into six individual lots (one lot for each of the five land use designations plus one lot for the townhome portion of the site). The vesting tentative tract map will provide: 13 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 14 of 35 One residential ground and airspace parcel for 120 apartment units and a maximum of ten airspace parcels for commercial condominiums on Lot 1 (i.e., PCC-South) a Ground and airspace parcel for the parking structure and up to ten airspace parcels for commercial condominiums on Lot 4 (i.e., Fairfield Parking) • One residential ground and airspace parcel for 137 apartment units and up to a maximum of 20 airspace parcels for commercial condominiums on Lot 5 (i.e., southern portion of PCC-North) 9 Six residential condominiums (townhomes) on Lot 6 (northern portion of PCC- North) The vesting tentative tract map currently depicts the legal lots without the street dedications required on Mariposa Avenue, Indiana Street, Holly Avenue and Palm Avenue. The dedications are required as conditions of approval and will be provided through irrevocable offers to dedicate land before the final tract map is recorded and/or buildings are occupied. DISCUSSION: General Plan Consistent In considering the proposed project, the Planning Commission reviews components of each requested application and considers the merits of the project to make a recommendation for City Council's consideration. This will include recommending that the project is consistent with the General Plan. The project is consistent with the goals and policies in the Economic Development, Land Use, Circulation, Housing, Open Space and Recreation, Conservation, Noise, and Public Safety General Plan Elements. It will increase the City's tax base, provide a mixed -use and pedestrian friendly environment, provide need housing, make improvements to the street network, and it will comply with all applicable building safety, noise, and air quality/construction related regulations. A detailed analysis of the General Plan consistency can be found in the attached draft resolution (Attachment No. 1). City Council Strategic Plan Consistenc The proposed Specific Plan is also consistent with City Council Strategic Plan Goal No. 5 to Champion Economic Development and Fiscal Sustainability. Specifically, the proposed Specific Plan addresses the Council's priority to "identify areas within the community that are appropriate for housing." PCH serves as a primary corridor through El Segundo. A range of business and services are complimented by residential units 14 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 15 of 35 along commercial corridors by minimizing the oversaturation of non-residential uses as properties are redeveloped, reduces overall traffic, encourages and facilitates a stronger local customer base, and expands service demands on local business and services. Housing Element Consistency The City is currently updating its General Plan Housing Element. One of the goals of this process is to identify adequate locations to meet the City's RHNA (Regional Housing Needs Allocation), which is 521 units for the 2021-2029 Housing Element period. The 521 units are divided into the following affordability categories: Table No. 2 — Housina Element RHNA allocation Very Low Income 18 189 207 39.7% Low Income 11 88 99 19.0% Moderate Income 0 84 84 6.1% Above Moderate Income Total 0 29 131 492 131 521 25.1 % 100.0% The proposed Specific Plan results in the construction of 263 residential units, including 32 units set aside for low and very low-income households (See Development Agreement discussion below). As a result, the Specific Plan meets a substantial proportion of the City's RHNA allocation in both the affordable and market rate units. In addition to helping meet the City's RHNA requirements, the proposed location is a good location for higher density housing. The location along PCH corridor can better accommodate higher density residential development compared to other parts of the City, because of its proximity to many existing amenities/uses, such as- * Commercial retail and services (grocery store, restaurants, etc.). ■ Park and recreation facilities. School facilities (elementary and middle school within walking distance). ■ A major employment area east of PCH. Further, the proposed location is advantageous due to its proximity to existing and planned transportation facilities, including: Y PCH, a major north -south commuting route and LAX connection. ® 1-105 and 1-405 freeways, major regional transportation corridors 15 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 16 of 35 ® LA Metro Bus and Beach Cities Transit Bus lines that provide connections to nearby cities and to the LA Metro Green Line. LA Metro Green Line and Crenshaw Corridor Line. The nearest Green Line station to the PCC Specific Plan is half a mile away, at Mariposa and Nash. Once the Crenshaw Corridor project is completed (in 2022), it will connect the Green Line with the Expo Line and allow convenient transportation to Downtown Los Angeles and the West Los Angeles/Santa Monica area without using a car. For the above reasons, the proposed PCC Specific Plan location meets the Council goal of identifying appropriate locations for housing. Parkinq Discussion and Analysis The applicant is providing enough on -site vehicular parking for the PCC project as required by ESMC Chapter 15-15 and the PCC Specific Plan. Based upon a parking demand study and shared parking analysis conducted by Fehr & Peers and peer - reviewed by Dudek, the City's consultant, the Specific Plan is requiring the mixed -use project to provide parking as described in Table No. 3 below. Table No. 3: PCCSP Parking Requirements Market Rate Units Studio One -Bedroom Two -Bedroom 1.0 1.5 1 2.0 Townhomes 2.0 1/3 parking space per residential unit; may be shared with Guest Parking commercial uses; up to 5% of residential parking spaces within Specific Plan area may be shared with other uses. Affordable Housing Units Studio One -Bedroom Two -Bedroom Guest Parking Commercial, Restaurants, Hotel 0.5 1.0 1.5 0.0 Non -Residential Uses Number of parking spaces to be determined by an approved parking demand study and shared use analysis 16 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 17 of 35 Compact Parking for Residential and Commercial Uses Tandem Parking for Residential Only Maximum of 20% of spaces Maximum of 20% of spaces Vehicle Lifts for Residential Maximum of 10% of spaces and Hotel Uses Only L The PCC project provides 792 parking spaces within the three parking structures plus an additional 33 at -grade parking spaces on the Fairfield Inn and Suites site, 26 of which will remain after construction. Of the 792 parking spaces within the parking structures, the applicant is providing compact spaces and tandem spaces only in the PCC-North area (41 compact spaces, and 22 tandem spaces, which is less than the maximum allowed by the PCC Specific Plan and the ESMC). There are no compact spaces or tandem spaces in PCC-South and Fairfield Parking areas. Parking spaces for residential uses are reserved for the individual tenants, except for the 5% of residential spaces that may be shared with non-residential and guest parking. Residential parking within PCC-South and PCC-North meets the Specific Plan requirements as depicted in Table No. 4. Table No. 4: Parking Compliance Analysis Specific Plan Designated ' Parkin Us Required 3 Residential Supply Spaces Spaces All Market Rate Units (257) Hotel 126* PCC-South Residential 170 336 165 GuestlRetail 40* 213* Fairfield Hotel/Retail 215 0 Parking 194 PCC-North Residential 241 189 GuesWetail 47* Total 790 792 354 225 Market Rate Units Plus 32 Affordable Units Hotel 126* PCC-South Residential 140 336 165 GuesURetail 35* Fairfield Hotel/Retail 213* 215 0 Parking 17 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 18 of 35 Residential 185 241 189 PCC-North Guest/Retail 40* Total _ 739 792 354 "There is no specific requirement for commercial uses in the Specific Plan. The commercial uses will share the parking spaces with the residential and/or hotel guests based on the Parking Demand Study and Shared Parking Analysis. The parking requirements are reduced with the inclusion of affordable housing, pursuant to State law. The PCC Specific Plan specifies that parking rates for affordable housing units are less than for market rate units. As further discussed in the affordable housing agreement, the applicant will provide 32 affordable units, including 18 studios, 11 one - bedroom, and 3 two -bedroom units. This composition of affordable housing units reduces the parking requirement from a total of 790 spaces for all market rate units to 739 spaces for the proposed mix of market rate and affordable units. Loading and Trash Pick -Up Discussion and Analysis The applicant is providing loading/unloading spaces pursuant to ESMC Section 15-15-7 and the PCC Specific Plan as follows: PCC-South: Two small truck loading areas are provided near the parking structure entrance on Indiana Street, on Level P-2, to serve the residents and commercial tenants. Residential trash pick-up is located in the same area. Commercial trash service is located on Level L-1, at -grade on PCH. The applicant is providing a dedicated area west of the parking structure entrance for commercial trash pick-up as well as an additional delivery area. The exact location is not identified on the plans. Fairfield Parking: The applicant is providing an area for loading and trash service west of the parking structure entrance. The trucks will enter from PCH onto the one-way driveway in a westerly direction and exit the site onto Indiana Street. Smaller delivery trucks can access the parking structure and park along the rear of the commercial spaces. PCC-North: Parking for loading/unloading and commercial and residential trash service is provided from the fire lane in a separate area (approximately 10'x30') between the apartments and townhomes. Bicycle Parking_Discussion and Analysis The applicant is providing the appropriate number of bicycle parking for both residential and commercial and uses as stipulated by ESMC Section 15-15-6 and PCC Specific Plan. Multi -family residential requires bicycle parking equivalent to 10 percent of the required vehicle parking spaces and for commercial uses, a minimum of four bicycle spaces for up to 15,000 square feet of commercial space. 18 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 19 of 35 Table No. 5: Bicycle Parking PCC-South ential Code Use Provided Commercial Code Use Provided 34 34 4 4 Fairfield Parking 0 0 4 4 PCC-North 24 24 4 4 Total 58 58 12 12 Aloft Hotel and Fairfield Inn & Suites 8* 8* *These are existing bicycle spaces to be replaced as part of the development. Bicycle parking for both residential and commercial uses are located on private property, with the exception of bicycle parking in the Fairfield Parking area where it is located in the public right-of-way, specifically on the public sidewalk adjacent to the store window. The applicant will be required to obtain an encroachment permit and enter into a maintenance agreement to place the commercial bicycle parking spaces in the public right-of-way. In addition to the new residential and commercial bicycle parking spaces, the applicant is replacing 8 existing bicycle parking spaces located in front of the Fairfield banquet facility, which will be demolished in the first phase of construction. These 8 bicycle spaces will be used by hotel guests and employees and reallocated equally between the two hotel sites. Landscape Plan Discussion and Analysis The applicant has provided a conceptual Landscape Plan and Plant Palette (Attachment No. 5). A full set of Landscape and irrigation Plans will be developed prior to issuance of a building permit and is included as a Condition of Approval. Landscaping is provided in the street setback areas, the two central courtyards, around the parking structures, and within the two pool/roof decks. To provide a variety of sizes of landscaping, including trees that will quickly reach maturity, ESMC Section 15-2-14 requires the following minimum sizes for plant material: Table No. 6 — Minimum Plant Material Sizes Trees equired Not Required 20% Provided 4% 60" box 36" box 62% 24" box 30% 34% 15 gallon 50% - Shrubs 5 gallon 100% 100% 19 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 20 of 35 In lieu of providing the smaller 15-gallon trees, the applicant has proposed to meet the requirement with larger trees. Generally, the interior of the site has limited landscaping, due to the compact nature of the development. The proposed landscaping consists primarily of medium size trees within street facing and interior setback areas between parcels within the Specific Plan and properties outside the Specific Plan. One exception is a portion of the 15-foot setback between PCC North and the abutting residential properties to the west. Staff recommends and has included a condition of approval requiring the applicant to plant additional trees and other landscaping along the entire western setback area, with the tree species being subject to staff review and approval (see Site Plan Review discussion below). Site Plan Review Discussion and Analysis During project review, staff proposed several design modifications to the project, however, as part of the ongoing negotiation of the Development Agreement, these items were not included in the final development proposal in order to accomplish a financially feasible project, while providing the City's requested 12% affordable housing units. As such, staff recommends including certain conditions requiring non-structural design changes to further improve the project. The following discussion is included to provide the Planning Commission a complete picture of the project review process and some concessions made to reach a draft agreement with the applicant. The discussion also highlights the major design modifications conceded during the review process and the minor design modifications recommended as conditions of approval. PCC North and PCC South elevations: The proposed elevations of both buildings provide a variety of colors and materials, as well as changes in building planes (step -backs) that provide visual relief from the ground level to the top of the structures. It is unclear from the plans how big those building plane variations are, because they are not fully dimensioned. Condition of approval No. 17 requires submittal of detailed, fully dimensioned drawings for Development Services Director review and approval clearly showing the extent of the building step -backs and various architectural elements. With adequate details on the plans, staff can better evaluate the buildings' architectural design features. Any changes to the design that staff requires would not substantially affect the overall design of the project. Further, this will ensure internal architectural consistency and compatibility. PCC North and PCC South courtyards/plazas: As mentioned in the site plan design guidelines discussion, the proposed mixed -use buildings do not include any courts or plazas along the PCH frontage that can serve as gathering spaces and encourage more pedestrian activity. Staff recommends that, at a 20 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 21 of 35 minimum, some of the commercial spaces be designed with recessed entries or storefronts to allow for outdoor seating or retail displays, or provision of amenities such as bicycle parking. Condition of approval No.18 requires submittal of revised plans that promote a pedestrian oriented design that does not result in the loss of square footage, including recessed storefronts to accommodate amenities such as seating, bike parking, outdoor dining, outdoor retail display, etc. for the commercial uses at PCC North, PCC- South, and Fairfield Parking sites, subject to Development Services Director review and approval. This condition partly replaces the public gathering/plaza design feature, in that it will provide some architectural relief, provide a better pedestrian experience, and encourage some pedestrian activity without substantially or structurally altering the overall design. PCC South — West elevation (Indiana Street): The west elevation of PCC South fronts on Indiana Street, which is occupied exclusively by residential uses on the west side of the street. Staff recommended during the review process that the project incorporate residential units with entrances along Holly Avenue and Indiana Street to add more visual interest and pedestrian activity along the project frontage on those streets and to better integrate the project with the residential uses across Indiana Street. Although staff continues to believe that such a design would result in a more pedestrian oriented development and street activation, staff does not recommend a re -design to include residential units at the street level. PCC North Firelane and setback area Blue Wall As mentioned in the project description, PCC North utilizes a 26-foot wide driveway along the western part of the property to provide access to the apartment building parking garage and the townhome units (see Figure No. 10 below). Directly next to the proposed firelane is an existing 6-foot tall concrete block wall painted blue, which is proposed to remain in place. However, it is not located on the western property line -,it is set back 15 feet away from the property line, which creates an underutilized 15-foot strip of land running the entire length of the property from Mariposa Avenue to Palm Avenue. During the project review, staff recommended that the wall be removed, rebuilt at the actual property line, and that the 15-foot strip of land be incorporated into the development in the form of a landscaped setback, a pedestrian path, a seating/recreational area, or a combination of those options. This could provide a pedestrian connection and/or recreation space between Mariposa Avenue and Palm Avenue. Instead of removing the blue wall, the applicant proposes to paint it and plant climbing fig to cover the wall and provide some visual relief for residents driving along the firelane. Rather than require a substantial re -design of the 15-foot setback area along PCC North, staff recommends condition of approval No. 16, which requires new trees or other landscaping materials be planted along the entire 15-foot wide setback area between Mariposa Avenue in order to contribute to screening and sound attenuation. Staff believes the condition will improve the project design and is common practice for new projects particularly those projects abutting residential uses. 21 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 22 of 35 ' Fg8'ir n•: La :14 f` _. .�� J �. T .CL Townhome site site layout: The proposed six townhomes are arranged in a row north -to -south at the north end of the site. They have a very small ground floor footprint consisting only of a two -car garage space and a stairway leading to the upper floors. All garages are oriented west and take access directly off the firelane/access driveway that runs north -south between Palm Avenue and Mariposa Avenue. The firelane/access driveway does not have a sidewalk along this portion of the site, although there is a sidewalk adjacent to the apartment building directly south of this location. To improve pedestrian mobility and add more landscaping along the access driveway, staff recommended and a change to the townhome configuration. This would consist of reducing the number of townhomes to four and re -orienting the garages in a north -south direction so that they face each other. This would create more space between the townhome buildings and the fire lane to provide a sidewalk and landscaping, which would then extend from Mariposa Avenue all the way to Palm Avenue. Staff does not recommend a substantial redesign of the project to re -orient or remove the townhomes. However, staff raised this issue during the project review process and development agreement negotiations to improve the project's design along the firelane without reducing the overall number of residential units. PA EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 23 of 35 Townhome Elevations: The west elevations facing the firelane provide more variety in materials and building planes. This is partly because the garages, main entrances, and the balconies/decks on the upper levels are oriented toward the west. Staff believes that the east elevation should have a similar details and variety. Condition of approval No. 23 requires submittal of revised drawings for the townhome building that incorporate equal detail and variety in building planes and materials on all the elevations, subject to the Development Services Director review and approval that do not result in the loss of square footage. With additional architectural features, such as windows, balconies, etc., the east elevations will provide sufficient variety and interest without affecting the overall design substantially or structurally. Further, staff believes these features provide visual relief and minimize the apparent bulk and mass of the structure. Figure No. 12 — Townhome Elevations Jb `I 1, 5 = 1 ;a;=:.c••.� F f- I. f i 1 I _�+irsr �evRnoMC rn _J LL Additional Specific Plan Design Issues Considered Circulation: A potential improvement to the circulation within the Specific Plan area would be to extend Indiana Street from Mariposa Avenue to Palm Avenue as a public or a private street. The Specific Plan circulation plan currently contemplates a private access driveway/firelane at the same location with gates at either end restricting access only to the residential and commercial uses onsite. Removing the gates and adding a full-length sidewalk along this 23 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 24 of 35 driveway would provide an additional vehicular and pedestrian connection for the entire neighborhood. Staff recommended allowing public access along this private driveway and studying the potential impacts in the draft Environmental Impact Report (EIR). However, the applicant elected to proceed with the Specific Plan as currently presented. Specific Plan boundaries: One potential limitation of the PCC Specific Plan is that it does not incorporate at a minimum the two parcels abutting the PCC North site that are developed with the Unocal 76 station and the Carl's Jr restaurant. Staff believes that inclusion of those two parcels would have allowed for a more efficient design of the entire city block, while producing even more housing (including affordable units). However, the applicant elected to proceed without incorporating additional parcels in the Specific Plan. Recreation/Open Space: The Specific Plan does not contemplate any public open space that is accessible to residents or businesses outside the Specific Plan property. There are courtyards and community rooms on the ground level and rooftop decks/pools in each of the mixed -use districts of the Specific Plan, but those amenities are available only to residents of the proposed development. Providing public courtyards, as mentioned above, or replacing some or all of the townhomes in the PCC-North area with a public park would provide an additional amenity for the entire neighborhood. Staff recommended providing public open space where the townhomes are located and compensating by adding more residential units on the top level of the mixed -use buildings. However, the applicant elected to proceed with Specific Plan as currently presented, without publicly available open space. Commercial Condominiums: A staff concern with the proposed tract map relates to the proposed for commercial airspace units. The concern is about responsibility for the maintenance of common areas, trash, and landscaping. If the commercial area is divided and sold to multiple owners, the responsibility for the common areas may be neglected. The overall commercial floor area for the project is 11,252 gross sf and up to 30 commercial condominium units are proposed. The conditions of approval currently require recordation of CC&Rs, subject to City review and approval, that address maintenance of common areas and landscaping, including landscaping in the public right-of-way. Alternatively, the Planning Commission or City Council may consider either reducing the number or eliminating the commercial airspaces from the tract map. Most of the above staff recommendations on the project site plan design were intended to provide physical and visual connections between the proposed development and the surrounding neighborhood, to add more interest at the ground level, and promote more pedestrian activity around the project site. Staff's objective was to better integrate the proposed development into the community around it. However, in the interest of reaching an agreement on the Development Agreement and the percentage of affordable units, staff did not pursue these points further. If the Planning Commission believes these issues are worth further exploring, the Commission has the authority to ask the applicant 24 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 25 of 35 to address them, including any potential implication on project design or impact to the number of affordable housing units, prior to making a decision on the project or including additional conditions when formulating a recommendation to City Council. Dedications and Waiver Request Chapter 24A of the Municipal Code requires certain right of way dedications in order for streets around the project site to meet the minimum standards in the Circulation Element of the General Plan. The required dedications based on the Circulation Element and the proposed dedications for the project are described in Table No. 7 below. Table No. 7 — Holly Avenue (North) Indiana Street (East) Mariposa Avenue (South) Mariposa Avenue (North) Palm Avenue (South) ired Dedications and Waiver Requests 7 feet 0 feet 7 feet 7 feet 3 feet 4 feet* 7 feet 3 feet 4-12 feet** 7 feet 0 feet 7 feet 12 feet 0 feet 12 feet 'Along Indiana Street, dedications are required only along the property frontage where new construction will occur (Fairfield Parking and PCC South Sites). No dedication is required along the existing hotel properties' frontage. *The dedication width along the south side of Mariposa Avenue varies to accommodate the width of a proposed right - turn lane. In accordance with ESMC Chapter 24A, the applicant has submitted a request to partially waive the dedications on two street segments, along Mariposa Avenue (South) and Indiana Street (East). After reviewing the requested waivers, the Public Works Director determined that the necessary findings can be made to approve the request. Specifically, even with the reduced dedications, both Indiana Street and Mariposa Avenue will maintain the minimum necessary width for emergency vehicle access and normal two- way operations, as well as maintain the minimum required public sidewalk widths. As a result, staff recommends that the Planning Commission recommend approval of the proposed dedication waivers to City Council. A more detailed discussion of the findings is provided in the attached draft resolution (Attachment No. 1). Right Turn Lane: The proposed project includes construction of a dedicated right -turn lane on eastbound Mariposa Avenue to southbound PCH. As a result, the east bound lanes of Mariposa Avenue at PCH would be reconfigured from one left -turn lane and one through -right lane, to one left -turn, one through, and one right -turn lane. The proposed right -turn lane is 10 feet wide and approximately 50 feet long (at full width) with a gradual (60-foot) taper. Based on the traffic analysis for the project, inclusion of the proposed right -turn lane will improve the operation and traffic flow at the Mariposa Avenue/PCH intersection. 25 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 26 of 35 Modifications to hotel CUP approvals In 2014, the Planning Commission approved a Subdivision (SUB 14-05) to combine the underlying Hacienda Hotel site into two parcels to allow the Hacienda Hotel to be split into two hotels and remodeled. It also approved two conditional use permits (CUP 14-01 and CUP 14-02) to regulate the alcohol sales and service at each of the hotels. Resolutions Nos. 2759 and 2760 regulating the alcohol sales and service at each hotel also contain unrelated conditions regarding: a. Subdivision No. SUB 14-05; b. Off -site parking for the two hotels; c. A lot -tie covenant between the Fairfield hotel site and the parking lot north of Mariposa Avenue; and d. Construction conditions related to the 2014 remodel. All these conditions (a-d) will be superseded with the approval of the proposed Pacific Coast Commons project, which contains conditions regarding sharing of access and parking between the proposed lots in the Specific Plan area. However, the existing CUPs and conditions regarding the alcohol sales and service need to remain in place. As a result, staff recommends that the Planning Commission approve resolutions Nos. 2906 and 2907 recommending City Council approve modifications to the existing CUPs to retain only those conditions related to the alcohol sales and service at each hotel. Development Agreement Discussion and Analysis City staff and applicant negotiated the attached Development Agreement to stipulate and to clarify the benefits, which each party is providing towards the completion and on -going implementation and maintenance of the PCC project. The term of the Development Agreement is 15 years and provides for an annual monitoring and reporting of good faith performance by both parties. The Development Agreement stipulates that the applicant shall comply with this Agreement, and all Project approvals and EIR mitigation measures. The items contained in the Development Agreement are in addition to the code -required project development. The applicant is providing the following additional development improvements, which are not required in either the City's General Plan, Zoning Ordinance, or PCC Specific Plan, and are considered to be of benefit to the community. The applicant is providing the following items as contained in the Development Agreement: Affordable Housing: The applicant agrees to provide 32 units of affordable housing for 55 years and to pay for an independent affordable housing consultant to monitor the implementation of the affordable housing program. The Affordable iIN EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 27 of 35 Housing provisions are further detailed in a separate affordable housing agreement, which is discussed in the next section. ® Preferential Parking Zone: The applicant agrees to contribute $25,000 towards the establishment of a permit parking district, contingent upon community initiation. If after three years nearby residents do not initiate a parking district, the funds may be used towards the implementation of any public improvement that benefits the immediate neighborhood. Community Meeting Room: The applicant agrees to provide a meeting room for community non -profits to use at no charge. Additional Public Landscaping and Public Seating Areas: The applicant agrees to provide additional street trees on certain sections of the west side of Indiana Street, near Holly Avenue, as well as along the southern portion of PCH. The applicant further agrees to provide solo seating facilities, on private property, along the PCH frontage. Enhanced Paving: The applicant agrees to provide enhanced paving materials for specific locations to increase pedestrian safety. EV Charging Stations: The current CalGreen code requires 62 parking spaces to be capable of converting into an EV Charging Station. The applicant agrees to provide 200 EV spaces, of which 50 will have operational charging stations upon the completion of each construction phase. The remaining 150 EV parking spaces will be capable of converting to EV Charging Stations at a later date. Solar Panels and Battery Storage: The applicant agrees to provide solar panels, mounted on the top floor of the parking structures, to provide electricity for the project common areas, as well as battery storage units. In exchange for the community benefits, the City is providing certain assurances to the applicant that reduces the applicant's risk and increases certainty: Certainty that the PCC Project is subject to only those City fees, codes, and regulations that are in effect at the time of approving the Development Agreement. Expedited process to review building plans. Affordable Housing As mentioned earlier in this report, the City's RHNA obligation is 521 units distributed among four income categories based on Table No. 8 below. 27 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 28 of 35 Tabie No 8 — Housin Element RHNA allocation CategoryIncome Very Low Income Carryover 18 189 207 39.7% Low Income 11 88 99 19.0% Moderate Income 0 84 84 6.1% Above Moderate Income 0 131 131 25.1 % Total 29 492 521 100.0% The above RHNA obligation for the 2021-2029 period is seven times larger than that for the previous planning period (2013-2021). As a result, finding an adequate number of potential housing locations in the City and incentivizing and/or requiring the construction of affordable units is imperative. The PCC project offers an opportunity for the City to make significant progress towards meeting its RHNA obligations. The 32 affordable units agreed to in the Development Agreement will meet a significant proportion of the City's RHNA obligations in the low and very low-income categories. As part of the development agreement, the applicant will record two affordable housing agreements, one for each housing site (PCC South and PCC North). The two affordable housing agreements are attached to this report as Development Agreement Exhibits D1 and D2. Each agreement defines the affordability requirements, requires the affordable housing units to be equitably distributed throughout the two residential sites, provides the minimum number and type of apartment unit for each income category (summarized in Table No. 9 below), and identifies the annual monitoring requirements and reporting methodology. __I _I_I_ II__lL I able NO. y — ATTOrQaDie Unit I VLMS dnQ InGVITIe Lt:VG1, Housing Site .- of Unit AffordableHousing •Total)Affordability PCC South Studios 44 9 1 Very Low/8 Low One 5 Low 52 5 Bedrooms Two 1 Low 24 1 Bedrooms Subtotals 120 15 1 Very Low/14 Low PCC North Studios 47 9 2 Very Low/7 Low One 6 Low 67 6 Bedrooms Two 2 Low 23 2 Bedrooms Subtotals 137 17 2 Very Low/15 Low Totals 257 32 3 Very Low/29 Low 28 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 29 of 35 Development Feasibility Analysis The Development Agreement negotiations were informed by the findings of a Development Feasibility Analysis conducted by Keyser Marston Associates (KMA), the City's economic/financial consultant for this project. KMA based their analysis on construction pro forma information provided by the applicant, their own expertise in public and private real estate development, and market information on current rents and sales prices for real estate. For their analysis KMA also assumed that 10% (or 26) of the proposed residential units would have rents restricted at levels affordable to households with low incomes. The purpose of the analysis was to help determine whether the project would be financially feasible if it incorporates a certain percentage of affordable units and to what extent the City could gain additional benefits through the Development Agreement. KMA's analysis indicates that with 10% of the residential units set aside for low income households, the proposed development is feasible, but that there is little ability to negotiate for additional benefits to the City. Fiscal Impact Analysis In addition to the Development Feasibility Analysis, KMA peer reviewed a Fiscal Impact Analysis prepared by Stanley Hoffman Associates (SHA), a consultant retained by the applicant. The purpose of the Fiscal Impact Analysis was to determine the impact of the proposed project on the City budget through a comparison of the anticipated annual City revenues (taxes, service charges, etc.) with the anticipated annual City costs for services (Police, Fire, Recreation, etc.) from the project. KMA peer -reviewed the Fiscal Impact Analysis and agreed with its estimate that the proposed development would have a net negative impact on the City budget of $127,631 annually. For contextual purposes, KMA indicated to staff that residential developments generally tend to have a more negative fiscal impact for cities compared to commercial developments. ENVIRONMENTAL REVIEW Notice of Preparation Pursuant to the requirements of the California Environmental Quality Act (CEQA) and based on staff's review of the project and discussion with the applicant, City staff concluded that the project necessitated the preparation of an EIR. As such, on May 26, 2020, the City distributed a Notice of Preparation (NOP) for an EIR, initiating a 30-day public scoping period that concluded on June 25, 2020. The purpose of the NOP was to indicate formally that the City was preparing a Draft EIR for the PCC Project and, as Lead Agency, to solicit input regarding the scope and content of the Draft EIR. The City held a public scoping session on June 10, 2020 to provide the public with an opportunity to learn more about the PCC Project before submitting any written comments. The NOP was distributed to all Responsible Agencies, as well as other agencies; property owners and occupants within a 300-foot radius from the subject property, plus additional occupants of properties immediately east of Independence Park between Holly Avenue 29 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 30 of 35 and Palm Avenue, and published in the El Segundo Herald. The NOP was also posted on the City's website. Draft EIR After the NOP comment period ended, the Draft EIR was prepared taking into account and addressing the various comments received during the NOP phase. After completing the Draft EIR, the document was made available to the public on February 25, 2021 for a 45-day public comment and circulation period that concluded on April 12, 2021. The purpose of this circulation period is to allow the public and agencies to provide input on the content and analysis contained in the Draft EIR. The Draft EIR analysis determined that the project would have less than significant impacts in the following topical issues: Aesthetics, Agriculture and forestry Resources, Air Quality, Biological Resources, Cultural Resources, Energy, Geology and Soils, Greenhouse Gas Emissions, Hazards and Hazardous Materials, hydrology and Water Quality, Land Use, Mineral Resources, Noise, Population and Housing, Public Services and Recreation, Transportation, Utilities and Services Systems, and Wildfire. In addition, the analysis determined that the project would have less than significant impacts with mitigation incorporated in the following issues: Air Quality, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Noise, Transportation, and Tribal Cultural Resources. The impacts and mitigation measures related to these environmental factors are summarized in the Final EIR Executive Summary. Finally, the Draft EIR analysis found that the project would have a significant and unavoidable impact to Air Quality. Final EIR As a result of circulating the Draft EIR, the City received 37 comment letters. The Final EIR document contains a section titled "Response to Comments," which contains each written comment submitted, responses to each comment, and a section containing the mitigation measures identified in the EIR document to reduce impacts to a less than significant level. Lastly, the Final EIR contains an Errata section to the DEIR, which contains some minor modifications to the text for clarification or edits resulting from the comments received. The text modifications are shown in underline for language added and strikethFeYgh for language deleted. As a result of the comment and circulation periods associated with the NOP and the subsequent Draft EIR, and with the edits made to the Final EIR and responses to comments, no new impacts have been identified to warrant recirculation of the document or significant amendments to the analysis. EIR Findings Pursuant to CEQA requirements, the City is required to adopt two sets of findings prior to approving a project that will generate a significant and unavoidable impact on the environment: 1) Statement of Facts and Findings, and 2) a Statement of Overriding Considerations. 30 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 31 of 35 Statement of Facts and Fri?din s: The Statement of Facts and Findings identifies the significant impacts, presents facts supporting the conclusions reached in the analysis, makes one or more of the following three findings for each impact, and explains the reasoning behind the City's findings. The possible findings are as follows: 1. Changes or alteration have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the Final EIR. 2. Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by such other agency. 3. Specific economic, legal, social, technological, or other considerations, including provision of employment opportunities for highly trained works, make infeasible the mitigation measures or project alternatives identified in the Final EIR. The attached Exhibit 'A", titled "Findings of Fact and Statement of Overriding Considerations" provides draft findings for each of the impacts identified and provides the necessary supporting evidence. In summary, staff believes that Finding No. 3 can be adopted because: a. The proposed project would maintain the existing hotel uses while providing for a mixed -use multiple -family and commercial neighborhood. b. The proposed project would provide additional housing opportunities that support the goals of the Housing Element of the City's General Plan. c. The proposed project would improve the jobs/housing balance in the City of El Segundo, help address the regional housing shortage, and support and retain existing businesses by providing needed housing for employees. d. The proposed project would enhance bicycle and vehicular circulation through roadway intersection improvements that facilitate a safe and walkable community along PCH. e. The proposed project would eliminate surface parking lots and provide parking garages that allow for sharing among hotel, commercial, and residential land uses. The proposed project would reduce single -occupancy vehicle use by providing a mix of land uses in walkable proximity to the Metro C Line and the City's downtown. Based upon the mitigation measures identified in the EIR document, this finding can be made and adopted. 31 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 32 of 35 Statement of Overriding Considerations: The Statement of Overriding Considerations is required when a project will cause an unavoidable significant impact that cannot be mitigated. The EIR prepared for the proposed project identifies potentially significant environmental impacts within one issue area related to Air Quality, which cannot be fully mitigated and is therefore considered significant and unavoidable. Specifically, in regards to Air Quality, the proposed project would conflict with the region's Air Quality Management Plan (AQMP) population and housing estimates. The project site is located within the South Coast Air Basin (SCAB), which is under the jurisdiction of the South Coast Air Quality Management District (SCAQMD). SCAQMD administers the Air Quality Management Plan for the region which relies on population growth estimates in the Final SCAG 2016 RTP/SCS for the 2012-2040 period. Using population and housing estimates from the California Department of Finance, the City has a household size of 2.35 persons per household (DOF 2020). Assuming a household size of 2.35 persons per household, the proposed Project's residential units would accommodate 618 individuals upon its anticipated full occupancy in 2025. Considering the population growth anticipated in the 2016 RTP/SCS of 600 individuals within the City between 2012 and 2040, the proposed Project would result in a population growth in the City that would exceed the growth assumptions in the 2016 RTP/SCS, and would thereby exceed the population growth assumptions in the AQMP. There are no feasible mitigation measures for population growth. As a result, for the purposes of CEQA analysis, the proposed Specific Plan will have a significant and unavoidable impact with regard to AQ. As a result, a Statement of Overriding Considerations must be adopted, (ultimately, by the City Council for this project). In adopting a Statement of Overriding Considerations, Staff believes that the following finding can be made: The proposed project's benefits outweigh the significant and unavoidable impacts and, therefore, those impacts are acceptable in light of the proposed project's benefits. Each of the following benefits is an overriding consideration, independent of the other benefits, that warrants approval of the proposed project notwithstanding the proposed project's significant and unavoidable impacts related to air quality. The proposed project would provide several public benefits, including, without limitation, the following: The Project is consistent with the City's housing strategy to facilitate the development of affordable housing units and meet its Regional Housing Needs Allocation (RHNA). 2. The Project will physically improve two underutilized parking lots and a vacant 41,660 square -foot food and beverage building and replace them with 263 much needed housing units as well as 11,252 square feet of retail, service and restaurant uses to serve the neighboring residents and businesses. 3. The Project make land dedications and several improvements in the public right- of-way that will improve vehicular, bicycle, and pedestrian circulation in the area, including: 32 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 33 of 35 a. Construction of a right turn lane from eastbound Mariposa Avenue onto southbound PCH. b. Widening and sidewalk reconstruction along Holly Avenue between PCH and Indiana Street. c. Installation of street trees along PCH, Holly Avenue, Indiana Street, Mariposa Avenue, and Palm Avenue. d. Installation of public seating along PCH. 4. The Project is consistent with the City's housing strategy to direct growth in regional centers and areas near transit stations, major bus centers, and bus stops along major bus routes. 5. The Project is a mixed -use development that would generate fewer vehicle trips than traditional single -use and subdivision development, and it would take advantage of existing infrastructure systems serving the area. 6. The Project would implement the majority of the proposed measures by the California Air Pollution Control Officers Association (CAPCOA) to reduce GHG emissions, which also reduce criteria pollutants. 7. Promotes consistency with regional growth strategies, such as the SCAG 2016- 2040 Regional Transportation Plan and Sustainable Communities Strategy, by increasing density within the Plan area. To the extent the Air Quality impact would remain significant after mitigation, this impact is acceptable and outweighed by social, economic and other benefits of the project. Further, the alternatives that were identified in the Final EIR would not provide the project benefits to the same extent as the proposed project. Therefore, having reviewed and considered the information contained in the Final EIR, Technical Appendices and the public record, staff believes that a Statement of Overriding Considerations has been balanced against the unavoidable adverse impacts in reaching a decision on this project, and that a Statement of Overriding Considerations can be adopted. As indicated above, the attached Exhibit 'A", titled "Findings of Fact and Statement of Overriding Considerations", provides the details and justification for making the necessary findings and Statement of Overriding Considerations. PUBLIC COMMENTS The day of the December 9, 2021 Planning Commission meeting staff received lengthy and substantial written correspondence from two legal firms commenting and expressing concern about the analysis in the EIR: 33 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 34 of 35 1) Legal firm Mitchell M. Tsai representing Southwest Regional Council of Carpenters ("Southwest Carpenters" or "SWRCC") and 2) Legal firm Lozeau Drury, LLP representing Supporters Alliance For Environmental Responsibility ("SAFER"). Due to the extent and substantive nature of the comments, the Planning Commission -at staff's recommendation- continued the item to a date uncertain to give staff adequate time to review and respond to the comments. Prior to continuing the item, the Planning Commission also received oral testimony from several residents and interested parties who attended the December 9, 2021 meeting. The written correspondence, a summary of the oral testimony received, as well as responses to each of the comments, are attached as Exhibit No. 11. Further, since the December 9, 2021 meeting, staff has received correspondence from residents expressing general concern on issues such as parking (during and after construction), traffic, and construction noise that are addressed in this report and the EIR. That written correspondence is attached as Exhibit No. 10. ADDITIONAL INFORMATION: Specific Plan Public Outreach/Partici pation When the applicant initially approached staff with a development concept in 2019, staff suggested the applicant commence rigorous public outreach efforts due to the number of residential properties and neighborhoods that abut and are in close proximity to the specific plan area. Staff suggested the applicant also take a proactive approach to engage with the community, listen to their issues and concerns, and work with them to create a development project that is sensitive to those abutting communities. In response, the applicant conducted a community -wide open house meeting at the Fairfield Inn & Suites hotel and a virtual community meeting via Zoom. These meetings were advertised by sending individual mailers to residents living within 300' of the specific plan boundaries and was further extended to the residents living west of the Freedom Park along Washington Street. The two meetings were attended by at least 56 participants. City staff also attended these two meetings to observe and note the feedback provided by the community. Generally, the feedback consisted of questions/concerns regarding traffic, parking, height, noise, and air quality impacts from the project's construction and operation. The applicant also presented the project to four local community service organizations, including the Chamber of Commerce, El Segundo Kiwanis Club, El Segundo Rotary Club, and the El Segundo Unified School District Board. City staff were not present at these additional meetings/presentations. Information concerning the project, including renderings and plans, was also posted on the City's website and the applicant's website. The Specific Plan was posted on the website and copies were available for public review at the Development Services Department. 34 EA-1248 Pacific Coast Commons Specific Plan February 10, 2022 Page 35 of 35 ORIGINATED BY: Paul Samaras, AICP, Principal Planner AS REVIEWED BY: Eduardo Schonborn, AICP, Planning Manager,5AS APPROVED BY: Michael Allen, AICP, Director of Development ServicesMA A ATTACHED DOCUMENTS 1. Planning Commission Resolution No. 2905 Exhibit A — Conditions of Approval Exhibit B — Ordinance Ord. Exhibit A — Zoning Map Changes Ord. Exhibit B — Pacific Coast Commons Specific Plan Ord. Exhibit C — Development Agreement Exhibit C — Amendment to General Plan Land Use Designations Exhibit D — Amendment to General Plan Land Use Plan Northwest Quadrant subsection Exhibit E — Amendment to 1992 General Plan Summary of Existing Trends Build -out Exhibit F — Amendment to General Plan Land Use Map Exhibit G — Vesting Tentative Map (VTM) No. 82806 Exhibit H — Parking Demand Study and Shared Parking Analysis Exhibit I — Street Dedication Map 2. Pacific Coast Commons Specific Plan Environmental Impact Report (State Clearinghouse Document # 2020050508) 3. Mitigation Monitoring and Reporting Program 4. Environmental Findings of Fact and Statement of Overriding Considerations 5. Planning Commission Resolution No. 2906 Exhibit A — Conditions of Approval 6. Planning Commission Resolution No. 2907 Exhibit A — Conditions of Approval 7. Proposed Development Plans 8. Financial Feasibility Analysis 9. Fiscal Impact Analysis 10. Public communications 11. Responses to written comments and oral testimony received on December 8 and 9, 2021. 35