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CC RESOLUTION 5442RESOLUTION NO. 5442 A RESOLUTION ADOPTING AND APPROVING AN UPDATED POLICY FOR EVALUATING SMOKY HOLLOW SPECIFIC PLAN COMMUNITY BENEFIT PLANS The City Council of the City of El Segundo does resolve as follows: SECTION 1: The City Council finds and declares that: A. On February 4, 2020, the City adopted a methodology for approving Smoky Hollow Specific Plan Community Benefit Plans; B. On September 16, 2022, the City initiated an application for Environmental Assessment No. EA 1330 and Specific Plan Amendment No. SPA 22-01 to amend the Smoky Hollow Specific Plan updating permitted uses, development standards, design guidelines, the community benefit plan process, clarifying various provisions, and amending the Smoky Hollow Specific Plan Community Benefits Plan Policy; C. On January 12, 2023, the Planning Commission held a study session to receive public testimony and provide direction to staff on the scope of the specific plan amendment and the Smoky Hollow Specific Plan Community Benefits Plan Policy; D. On September 14, 2023, the Planning Commission held a duly noticed public hearing at the conclusion of which the Planning Commission adopted Resolution 2942 recommending the City Council adopt and approve an updated Smoky Hollow Specific Plan Community Benefit Plans Policy; E. The City Council of the City of El Segundo held a duly -noticed public hearing on October 17, 2023 to review and consider the proposed policy, receive public testimony, and review all of the evidence in the administrative record; and, F. This Resolution and its findings are made based upon the evidence presented to the City Council at its October 17, 2023, hearing including, without limitation, the staff report submitted by the Community Development Department and the totality of the evidence in the administrative record. SECTION 2: Factual Findings and Conclusions. The City Council finds as follows regarding the proposed amendments to the City's policy for evaluating Smoky Hollow Specific Plan Community Benefit Plans (the "Project"): A. The current Smoky Hollow Community Benefits Plan Policy counts as community benefits the architectural design features of buildings and other improvements on private property; those features primarily benefit private property owners and not the public; RESOLUTION NO. 5442 PAGE 1 of 8 B. The Smoky Hollow Specific Plan identifies public realm improvements in Chapters 3 and 5 that benefit the public and help implement the Specific Plan's primary goal of transforming Smoky Hollow into a vigorous incubator district and major economic force in the City; the current Smoky Hollow Community Benefits Plan Policy does not sufficiently prioritize these public improvements; C. The current Smoky Hollow Community Benefits Plan Policy is unnecessarily complicated; D. The current Smoky Hollow Community Benefits Plan Policy has not resulted in the implementation of public improvements at the rate originally anticipated; E. The current Smoky Hollow Community Benefits Plan Policy has not generated the revenue for the Smoky Hollow Public Infrastructure Fund originally anticipated; F, The proposed update to the Smoky Hollow Community Benefits Plan Policy clarifies the definition of community benefits; G, The proposed update to the Smoky Hollow Community Benefits Plan Policy will increase the revenue for the Smoky Hollow Public Infrastructure Fund and accelerate the implementation of public improvements; and K The proposed update to the Smoky Hollow Community Benefits Plan Policy simplifies the community benefit evaluation process. SECTION 3: Environmental Assessment. Based on the facts set forth in Section 2, and on the evidence in the record as a whole, the City Council finds and determines that the Project is not subject to the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq. ("CEQA")) for the following reasons: (1) it will not result in a direct or reasonably foreseeable indirect physical change in the environment (14 Cal. Code Regs. § 15060(c)(2)), (2) there is no possibility that the Project may have a significant effect on the environment (14 Cal. Code Regs. § 15061(b)(3), and (3) the Project does not constitute a "project" as defined in the CEQA Guidelines (14 Cal. Code Regs. § 15378). The Project simply amends the policy for evaluating community benefit plans proposed within the Smoky Hollow Specific Plan area; it does not modify or effect any allowable use or development standard in the Specific Plan area. SECTION 4: General Plan Findings. The City Council finds that the proposed policy is consistent with the City's General Plan. The Smoky Hollow Specific Plan serves as the implementing document for the General Plan, with specific goals/policies for the Smoky Hollow area. The proposed policy is consistent with the Specific Plan's goal to facilitate RESOLUTION NO. 5442 PAGE 2 of 8 the transformation of the Smoky Hollow district from an aging industrial area to a vigorous incubator district and major economic force in the City. Specifically, the proposed policy will clarify and simplify the community benefit plan evaluation process and require future developer to either construct or fund public parking, sidewalk and other streetscape projects in the public right-of-way, which is consistent with the Specific Plan's objective of making public infrastructure improvements. SECTION 5: Approval. The City Council adopts and approves the updated Smoky Hollow Specific Plan Community Benefits Plan Policy as set forth in Exhibit "A". SECTION 6: Reliance on Record. Each and every one of the findings and determination in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the Planning Commission in all respects and are fully and completely supported by substantial evidence in the record as a whole. SECTION 7: Limitations. The City Council's analysis and evaluation of the project is based on information available at the time of the decision. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. In all instances, best efforts have been made to form accurate assumptions. SECTION 8. Summaries of Information. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact. SECTION 9: This Resolution will remain effective unless and until superseded by a subsequent resolution. SECTION 10: The City Clerk is directed to certify the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 17t" day of October, 2023. Drew Boyle V- . ayor ATTEST: 00,t4 oiwa Tracy WeavVr, City Clerk APPROVED AS TO FORM: Mark D. F[Einsley, City Attorney RESOLUTION NO. 5442 PAGE 3 of 8 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Resolution No. 5442 was duly passed, approved, and adopted by said City Council at a regular meeting held on the 17th day of October, 2023, approved and signed by the Mayor, and attested to by the City Clerk, by the following vote: AYES: Mayor Pro Tern Pimentel, Council Member Pirsztuk, and Council Member Giroux NOES: None ABSENT: None ABSTAIN: Mayor Boyles and Council Member Baldino WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of October, 2023. Tr 1 - Weaver City Clerk of the City of El Segundo, California RESOLUTION NO. 5442 PAGE 4 of 8 EXHIBIT A Smoky Hollow Community Benefit Plan Policy COMMUNITY BENEFIT DEFINITION (BROADLY) Section 4.5.2 of the Specific Plan provides a general definition and examples of community benefits. For clarity purposes, the following information is quoted directly from the Specific Plan: "Community benefits are based on the principle that in exchange for allowing incremental increases in development intensity, the community should, in return, receive certain benefits, including beneficial design features such as publicly accessible open space and other development requirements that serve the community's needs." "The community benefits plan shall outline the request for flexibility from strict interpretation of the development standards and regulations of this Specific Plan, as well as the proposed public amenities, features, and improvements prioritized in this Specific Plan that would be provided." "Examples of potential community benefits include, but are not limited to, publicly accessible open space, publicly accessible parking, and implementation and/or funding of streetscape improvements identified in this Specific Plan." COMMUNITY BENEFIT PLAN FINDINGS Review and approval of community benefits is subject to the findings in Specific Plan Chapter 4 (Administration) and outlined in the table below. Tier 1, Finding A Finding A is intended to protect the neighborhood or community in general from any negative impacts from the proposed project. It is similar to findings for other similar discretionary applications. The review/approval authority may consider a wide range of potential impacts, including, without limitation, pollution, traffic, noise, hazards, aesthetics, and/or financial impacts. RESOLUTION NO. 5442 PAGE 5 of 8 Tier 1, Finding B Finding B clarifies the role of private realm design guidelines in the community benefit plan process. The City expects that private development projects include good, quality design; thus, in an effort to realize this expectation, compliance with the private realm guidelines is no longer considered a community benefit. Rather, compliance with 15 out of 28 guidelines (50 percent plus one) is now clearly a requirement for approval of a community benefit plan. In reviewing compliance with this finding, the review/approval authority should ensure not only that projects meet the minimum number of guidelines, but should also review the degree to which each guideline is met and/or incorporated into the design. Tier 1, Finding C Finding C broadly defines community benefits primarily as public improvements identified in the Specific Plan, but also allows limited private realm improvements that directly benefit the public. The discussion below provides more detail and examples of acceptable benefits, as well as guidance regarding the prioritization of community benefits. Acceptable Community benefits 1) Public Property Implementation of Projects/Actions in Specific Plan Chapters 3 and Chapter 5, including, without limitation, the following examples: • Decorative crosswalk implementation (Actions 8 and 23) • On -street parklets (Action 9) • Street reconfigurations/restriping (Actions 10-17) • Transit Improvements (Action 24) • Bicycle and Pedestrian Connectivity Improvements (Action 26) • Shade Trees and Open Space (Action 28) • Other related public improvements • Funding for all the above 2) Private Property • Open space on private property that is adjacent to the public right-of-way and easily accessible to the public. Project conditions of approval and/or restrictive covenants may be used to ensure the adequate identification, maintenance, and accessibility of the open space by the general public. • Land dedications for public purposes (such as sidewalk expansion, public open space, etc.) • Provision of public parking on private property that is easily accessible to the public. Project conditions of approval and/or restrictive covenants may be used to ensure the adequate identification, maintenance, and accessibility of the public parking. Tier l Commui benefits value a. In determining the appropriate community benefit value, the review/approval authority shall consider the magnitude of the requested exception, such as the additional floor area gained above the maximum floor area limit, and determine a community benefit value in proportion to the magnitude of the exception. b. Use of an independent financial/real estate consultant is not required. RESOLUTION NO. 5442 PAGE 6 of 8 c. At their discretion, the City Manager or designee may use an independent financial/real estate consultant to determine the added project value and the desired value of community benefits (20%) for larger projects or projects where the requested exceptions result in a substantial increase in the project's floor area above the maximum floor area limit. d. The City Manager or designee are authorized to develop additional policy guidelines for determining the appropriate community benefit value for Tier 1 Community Benefits. Priorities 1) Short term vs long term Chapter 5 identifies short term priority projects that should be implemented first. Developer Community Benefits and/or public (City) projects should take these priorities into consideration. 2) Public property/right-of-way vs. private property This policy refocuses community benefits exclusively onto public property/right-of-way with specific limited exceptions of benefits occurring on private property, but directly benefitting the public. Generally, public property/right-of-way improvements should be prioritized. 3) Construction of improvements vs. monetary contribution Generally, the construction of improvements should be prioritized. However, the City Manager or designee (and ultimately the Planning Commission or City Council) have the discretion to require a monetary contribution instead. If the City requires the construction of improvements, the improvements must comply with the following: a. The design must comply with all Specific Plan requirements, including the Public Realm Design Guidelines. b. The design must be reviewed and approved by the City before issuance of any permits. c. The improvements must not conflict with any City Public Works projects. d. The location of the improvements is subject to the City's discretion. Tier 2, Finding B Finding B, requires the community benefit value to bear a relationship to the value generated by a project, as established by City Council policy. The discussion below describes how the value is to be calculated. Tier 2 Desired community benefits value For Tier 2 Community Benefit Plans, the minimum community benefit value is 20% of the property added value. The discussion below describes how the value of the community benefits should be calculated: 1) Definition of "added project value" Added project value is defined as the difference between the potential market value of the subject property if developed with the additional density, height, or other exceptions requested as part of the proposed project and the potential market value of the property if developed in compliance with the maximum density, height, and other Specific Plan standards. RESOLUTION NO. 5442 PAGE 7 of 8 2) Independent report (financial/market/real estate) For Tier 2 Community Benefits, the City Manager or designee shall use the services of an independent financial/real estate consultant to establish the project "added value" resulting from the increased FAR, height, or other exception(s) requested. This would involve: a. Review of project construction cost information, such as contractor bid/estimates, pro - forma cost data from the project applicant, land purchase cost, etc. b. Review of current market values (rent or sales) for the type of proposed project. c. Comparison of the theoretical value of a project built at the maximum FAR and height permitted in the Specific Plan (code compliant project) with the potential value of the proposed project. The difference between the two (code compliant project vs. proposed project) would be the property added value used for calculating the required community benefit. d. The Community Benefit value calculation. If the proposed community benefit involves the actual construction of agreed upon public improvements, the City Manager or designee may at their discretion use the third -party consultant to also estimate and/or verify the actual costs of the proposed improvements. RESOLUTION NO. 5442 PAGE 8 of 8