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Report regarding applications for Design Review, Transportation Demand Management Plan, and Density Bonus to construct a Mixed-Use Development, consisting of 99 residential units with ground floor parking and a 1,500 sq. ft. restaurant at 421 Cypress Avenue, 209 & 213 Lux Avenue in the Downtown Transit Core (DTC) Zoning District in accordance with Title 20 of the South San Francisco Municipal Code (SSFMC), and determination that the project is consistent with the Downtown Station Area Specific Plan (DSASP) Environmental Impact Report (EIR), pursuant to California Environmental Quality Act (CEQA) Guidelines section 15162 and related CEQA requirements. (Stephanie Skangos, Associate Planner)
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RECOMMENDATION
Recommendation
Staff recommends that the Planning Commission conduct a public hearing and take the following actions:
1. Adopt a resolution determining that the project is consistent with an adopted Program Environmental Impact Report/Addendum for the Downtown Station Area Specific Plan and, based on the Environmental Consistency Analysis, would not necessitate the need for preparing a subsequent environmental document pursuant to the criteria of CEQA Guidelines Sections 15162 and 15168, and based on that analysis is also statutorily and categorically exempt from CEQA pursuant to Government Code Section 65457, Public Resources Code Section 21166, and CEQA Guidelines Sections 15168 and 15332;
2. Adopt a resolution making findings and approving a Design Review (DR21-0005), Transportation Demand Management Plan (TDM21-0002), and Density Bonus (DB22-0001), subject to the attached Conditions of Approval.
MOTION TO ADOPT STAFF RECOMMENDATION
(1) Move to adopt the resolution making findings and CEQA determinations
(2) Move to adopt the resolution making findings and approving project entitlements.
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BACKGROUND AND PROJECT OVERVIEW
On February 18, 2021, Peter Sodini (“applicant”) submitted an application for a Mixed-Use Development consisting of 99 residential units over ground floor parking and a restaurant located at 421 Cypress Avenue, 209 & 213 Lux Avenue. The project site is located within a ¼ mile radius of the new Caltrain plaza and station at the corner of Airport Boulevard and East Grand Avenue and consists of three parcels: one corner and through-lot parcel with frontages on Lux and Cypress Avenues and Tamarack Lane, and two through-lot parcels with frontages on Cypress Avenue and Tamarack Lane. The three parcels are developed with an existing restaurant (Bertolucci’s), five residential units (all vacant), and a surface parking lot, all of which will be demolished.
At the time of application submittal, two of the lots were located in the Downtown Transit Core (DTC) Zoning District with an allowed maximum density of 100 dwelling units per acre (du/ac), and one was located in the Downtown Residential Core (DRC) Zoning District, with an allowed maximum density of 80 du/ac. As such, the proposed project initially required a General Plan Amendment and Zoning Map Amendment to rezone the DRC parcel to DTC to maintain consistent zoning and development standards across the project site, as well as a Use Permit to allow increased density on the project site through the use of the Downtown Station Area Specific Plan (DSASP) Increased Density Incentive Program. The Use Permit request was also to allow multi-unit residential development and a Parking Reduction on the project site.
The Planning Commission reviewed the project and requested entitlements, including the General Plan and Zoning Map Amendments and Use Permit, on August 18, 2022, and recommended approval to the City Council. Prior to moving forward to City Council for final review, the application was placed on hold pending the adoption of the City’s new General Plan and Zoning Code.
The City’s new General Plan and Zoning Code were adopted on October 26, 2022, and the new Zoning Code became effective on November 26, 2022. The new General Plan and Zoning Code included a change in land use designation and rezoning of the project site’s third parcel to DTC from DRC, as well as an increase in allowed maximum densities in the DSASP districts and several other changes, including allowed uses and required parking for uses. Therefore, the project no longer requires a General Plan Amendment, Zoning Map Amendment, or a Use Permit to allow multi-unit residential development on the project site; use of the DSASP Increased Density Incentive Program to allow increased density on the project site; and a Parking Reduction. The Planning Commission now has the final approval authority and is thus hearing the project again.
Project Description
The proposed building will contain six stories of residential units over a ground-floor parking garage and project amenities, including leasing offices. The parking garage will provide a total of 99 parking spaces, which will consist of 90 parking stalls in stackers and nine at-grade parking stalls, five of which are ADA-compliant. A 1,500 square foot restaurant and plaza will also be located on the ground floor at the corner of Cypress and Lux Avenues. The upper levels will provide a total of 99 for-rent residential units, consisting of a mix of studio, one-, and two-bedroom units, ranging in size from 560 square feet to 1,610 square feet. Along with the ground floor leasing and lounge areas, the project provides an additional interior amenity area at the podium level that flows out of a shared, south facing, landscaped podium with seating areas and water feature, and a smaller interior amenity area with terrace on the top level.
Building Architecture and Design
The architecture harkens back to the historic character of the City with its brick base that grounds simple, straight-forward massing with hung balconies along Cypress and Lux Avenues. The building corner is expressed as a set-back to the corner restaurant with consistent window glazing above defining this corner element. A faithful reproduction of the original Bertolucci’s sign, located at the corner of the retail space gives the new project a strong identity, while acknowledging the historic significance of the site for the local community.
Entitlements Request
The entitlements request for this project includes:
• Design Review;
• Transportation Demand Management (TDM) plan;
• Density Bonus; and
• Approval of an Environmental Consistency Analysis (ECA) consistent with the DSASP Environmental Impact Report.
ZONING CONSISTENCY ANALYSIS
Proposed Use
The project site consists of three parcels within the Downtown Transit Core (DTC) sub-district of the DSASP. Per South San Francisco Municipal Code (SSFMC) Section 20.090.002 (Use Regulations - Downtown Station Area Zoning Districts), mixed-use development at high intensities is encouraged. Multiple-unit residential development is allowed by-right and a variety of commercial uses are allowed either by-right or with the approval of a Minor Use Permit (MUP) or Use Permit.
Development standards for the DTC sub-district are outlined in SSFMC Section 20.090.003. As noted in the below table, the proposed project complies with most of the applicable development standards. The proposed deviations from the required development standards are requested as a Waiver/Reduction of Development Standards under the State Density Bonus Law, as described in the staff report section below.
Table 1. DTC Development Standard Compliance
Site and Building Design Standards
SSFMC Chapter 20.310 (Site and Building Design Standards) prescribes general citywide site and building design standards to be used in conjunction with the applicable base zoning district requirements. SSFMC Section 20.310.004 (Multi-Family Residential and Residential Mixed-Use Design) includes additional standards applicable to multi-family residential and mixed-use developments.
The project complies with most of the applicable site and building design standards with some minor deviations. The proposed deviations from the required site and building design standards are requested as a Waiver/Reduction of Development Standards under the State Density Bonus Law, as described in the staff report section below.
Parking Requirements
The number of required parking spaces for land uses is regulated by SSFMC Section 20.330.004 (Required On-Site Parking Spaces). Pursuant to this section, no off-street parking is required for any use located within a Transit Station Area. A Transit Station Area includes any of the following: (a) Major transit stops; (b) Major transit stops included in an applicable regional transportation plan; (c) A transit corridor with a fixed route bus service with service intervals no longer than 15 minutes during peak commute hours.
A project is considered to be within one-half mile of a Transit Station Area or high-quality transit corridor if all parcels within the project have no more than 25 percent of their area farther than one-half mile from the stop or corridor and if not more than 10 percent of the residential units or 100 units, whichever is less, in the project are farther than one-half mile from the stop or corridor.
The project site is fully located within one-half mile of the City’s Caltrain Station, and, therefore, no parking is required. However, the applicant is proposing a total of 99 parking spaces, one parking space per residential unit, in the ground-floor parking garage. This proposal is based on the expected market demand for parking.
Transportation Demand Management (TDM) Plan
Pursuant to the newly revised SSFMC Chapter 20.400, (Transportation Demand Management), residential land uses with 20 or more units are required to provide a TDM plan and are categorized as “Tier 1” projects. The minimum requirements for Tier 1 projects are to achieve a total of 20 points. Points in various quantities are awarded based on specific trip reduction measures; for instance, including promotional programs and materials as a TDM measure would result in 1 point, whereas including a TDM coordinator/point of contact for commute assistance would result in 5 points. In other words, a Tier 1 project would have to propose the number and type of trip reduction measures that would accumulate sufficient points to achieve 20 points.
A draft TDM plan has been prepared for the project by Hexagon Transportation Consultants, Inc. (attached as Exhibit C to the associated Entitlements Resolution). The draft TDM plan provides a concise description of TDM Measures that the project will implement in order to achieve with the 20-point minimum for Tier 1 projects, as well as the DSASP’s goal to “provide for a balanced mix of travel modes - including pedestrians, bicyclists, transit and automobiles.” A Condition of Approval for project entitlements will be included to ensure TDM compliance.
State Density Bonus Law
The Density Bonus Law (found in California Government Code Sections 65915-65918) provides developers with tools to encourage the development of affordable and senior housing, including up to a 50% increase in project densities for most projects, depending on the amount of affordable housing provided. The Density Bonus Law provides a package of incentives intended to help make the development of affordable and senior housing economically feasible by providing incentives/concessions as well as additional forms of assistance which can have important benefits for a housing project.
The proposal qualifies for a density bonus of 20% under the Density Bonus Law by providing 5% very low income units. An additional 10% of the units will be provided at lower income, resulting in a total of 15% below market rate (BMR) units, which is in full compliance with the City’s Inclusionary Housing Ordinance (SSFMC Chapter 20.380) and discussed below.
In addition to the density bonus, under the Density Bonus Law, the application is eligible to receive one incentive or concession, an unlimited number of waivers from required development standards, and reduced parking requirements. No concession or incentive is being requested for the project. The applicant is seeking several waivers for the following development standards, also outlined in Exhibit D to the associated Entitlements Resolution:
• SSFMC Table 20.090.003 (Development Standards - Downtown Station Area Zoning Districts): Minimum usable open space provided shall be at minimum 100 sq. ft. per residential unit.
Proposed: 95 sq. ft. per residential unit
• SSFMC Sections 20.090.003(E)(1) (Development Standards - Transitional Standards) and 20.310.004(B)(5) (Multi-Family Residential and Residential Mixed-Use Design - Transitional Standards): Where a development abuts another district with a lower maximum height, the following standards apply: (a) the maximum height within 40 feet of the abutting district is equal to that of the abutting district; (b) the maximum height within 50 feet of the abutting district is an addition 10 feet or the maximum allowed height for that district, whichever is lower.
Proposed: Most of the new building will have a height of 85 feet, which is the maximum allowed height in the DTC district. The project site directly abuts the DRC district boundary at the interior side property line; the maximum allowed height in the DRC district is 65 feet (Table 20.090.003).
• SSFMC Section 20.090.003(E)(2) (Development Standards - Street Frontages): Buildings shall be constructed at the required setback for at least 65 percent of linear street frontage.
Proposed: Most of the new building will have a build-to line of 8” from the Cypress and Lux Avenues property lines instead of at the required street frontage setback of 0’ or 10’ from curb, whichever is greater (Table 20.090.003).
• SSFMC Section 20.090.003(G) (Development Standards - Corner Build Area): Buildings must be located in accordance with the required setbacks within 30 feet of every corner. Public plazas may be at the street corner provided buildings are built to the edge of the public plaza.
Proposal: The new plaza corner setback along Cypress Avenue is 14’-10” from the corner (of Cypress and Lux Avenues).
• SSFMC Section 20.310.004(E)(9)(a) (Development Standards - Roofline Form and Variation, Parapet): When used on the first floor or second floor, a parapet longer than 50 feet in length must include a step, curve, angle, or other motif to break up the length of the parapet.
Proposed: Parapets for part of the first floor extend more than 50 feet without a break. The longest first-floor parapet without a break is 57’-6”.
• SSFMC Section 20.310.005(G)(3) (Development Standards - Required Public Open Space): New buildings on lots greater than 15,000 square feet shall provide a plaza, widened sidewalk, or outdoor dining area, which provides public seating, is accessible from the public sidewalk, and is a minimum size of 600 square feet with minimum dimensions of 15 feet.
Proposal: The new plaza located at the corner of Cypress and Lux Avenues will include an outdoor dining area that is approximately 550 square feet with a dimension of 14’-10” by 34’-11”.
Under State Density Bonus Law, a city cannot apply any development standard which physically precludes the construction of the project at its permitted density and with any granted concessions/incentives. The above requested waivers are to minor design standards under the City’s code requirements, which are waivable development standards. However, with these proposed modifications, the waivers would actually provide a more refined design for the project. They would also allow the proposed project to provide residential units at the permitted density that are of high-quality and comfortable sizes for potential families, as well as provide substantial amenity space, interior and exterior, for future residents, within a building design that recognizes the historic significance of the project site to the City’s Downtown.
Inclusionary Housing Regulations and Affordable Housing Agreement
SSFMC Chapter 20.380 requires that “for rental” residential developments of five or more units provide a minimum of 15% of the base dwelling units as inclusionary units affordable to very low, lower or moderate income households. The required 15% shall consist of two-thirds, or 10%, designated for lower income households and one-third, or 5%, designated for very low income households and is calculated using the total number of units proposed if below the maximum base density allowed for the project site.
The project includes a total of 99 units, which is below the maximum base density allowed for the project site (105 units), and will provide a total of 15 BMR units, consisting of 10 units designated for lower income and five units for very low income, complying with the Inclusionary Housing requirements. A Draft Affordable Housing Agreement between the applicant and the City will be drafted in accordance with the requirements contained in SSFMC 20.380 and will be reviewed and approved by the City Manager as a standard Affordable Housing Agreement. This requirement has been included as a Condition of Approval for the project.
GENERAL PLAN CONSISTENCY ANALYSIS
The current General Plan Land Use Designation for the project site is Downtown Transit Core (DTC), consistent with the DTC zoning district for the project site discussed above. The applicant’s proposal is designed to be consistent with the vision for the DTC land use designation as a vibrant, mixed-use area most suitable for the highest intensities of new development in the Downtown area due to its proximity to the Caltrain Station. These higher intensities will help to support transit ridership since residential units will be within a short walk of the station.
SUSTAINABILITY / CLIMATE ACTION PLAN _
The City adopted a new Climate Action Plan (“CAP”) in October 2022; the CAP serves as South San Francisco’s greenhouse gas reduction strategy. The CAP includes requirements applicable to new development projects. As currently designed, the proposed project would comply with many of the standards and measures outlined in the CAP, and staff will continue to work with the applicant to incorporate as many sustainable features beyond those required by the CAP as possible into the project. Staff has included Conditions of Approval specific to the Climate Action Plan which requires the applicant to revise the project drawings to include all applicable CAP requirements subject to Chief Planner review and approval prior to the issuance of any building or construction permits. Subject to the conditions of approval, the project is consistent with the City’s Climate Action Plan.
DESIGN REVIEW BOARD
The Design Review Board (DRB) reviewed the proposal on June 15, 2021, and recommended approval with some minor design revisions, including expanding the proposed corner plaza area to provide a larger area for outdoor seating and public use, and relocating the proposed reproduced Bertolucci’s sign to a higher elevation. Additionally, the DRB encouraged the incorporation of an art piece or plaque dedicated to the history of the area. (The DRB comment letter is included as Attachment 2 to this staff report.) The DRB’s comments have been taken into consideration by the applicant and incorporated into the proposal.
HOUSING STANDING COMMITTEE (HSC)
For the Planning Commission’s reference only, at the time the proposed project underwent review prior to the General Plan/Zoning Code Update, it was required to be considered by the Housing Standing Committee, comprised of two Planning Commissioners and two City Council members. That committee reviewed the project’s design and proposed community benefits package in a duly noticed public meeting on August 16, 2021. No members of the public provided comments. The HSC reviewed the project and was generally supportive of the project’s architectural design, amenities, mix and affordability for the housing units proposed. The HSC review requirement is no longer applicable to the project review process under the revised General Plan/Zoning Ordinance regulatory structure and this information is provided for reference only.
COMMUNITY MEETING
The applicant hosted two community meetings, one virtually on September 23, 2021, and one in-person on February 5, 2022 at the project site for feedback on the project. Several members of the public attended and were generally supportive of the project. No substantial comments were provided.
ENVIRONMENTAL REVIEW
In 2015, the City Council certified a programmatic Environmental Impact Report (EIR) for the Downtown Station Area Specific Plan (DSASP) (State Clearinghouse #2013102001). The program EIR assessed the potential environmental impacts resulting from implementation of the DSASP, which established new land use, development, and urban design regulations for the area over a 20-year planning period. Since the certification of the program EIR, the City Council has certified an Addendum to the program EIR for the Downtown Transit Core (DTC) Zoning Amendments by Resolution No. 31-2018 on February 28, 2018.
The California Environmental Quality Act (CEQA) provides for limited environmental review of subsequent projects under a program EIR (CEQA Guidelines Sections 15162, 15168.) Components of a subsequent project must be examined in the light of the program EIR to determine whether any additional environmental analysis must be conducted. The CEQA Guidelines require lead agencies to use checklists or similar mechanisms to conduct this evaluation. The City, in conjunction with the applicant’s environmental consultant, Netto Planning Services LLC, prepared an Environmental Consistency Analysis (ECA) (Exhibit E to the associated Resolution), to examine the proposed Project regarding the need to conduct additional environmental analysis. In addition, the City examined whether any CEQA exemptions would be applicable to the proposed project in addition to the analysis under Sections 15162 and 15168.
Pursuant to such analysis, at the outset the proposed project is assessed to be exempt from CEQA pursuant to Government Code Section 65457, because it is a residential development project that is being undertaken pursuant to a specific plan for which an Environmental Impact Report (EIR) was prepared and certified. Additionally, no major revisions of the EIR are required because no substantial changes are proposed in the project, no substantial changes occurred with respect to the circumstances in which the project is being undertaken, and no new information has become available which was not known and could not have been known at the time the EIR was certified as complete, pursuant to Public Resources Code Section 21166. Therefore, the exemption under Government Section 65457 is evaluated as applicable here.
In addition, the project is also assessed to be exempt pursuant to CEQA Guidelines Section 15332 as it qualifies as in-fill development project. Specifically, the proposed project is designed to be consistent with the City’s General Plan and zoning regulations with approval of limited amendments (which are also consistent with the draft General Plan 2024 update currently underway). The project is located within South San Francisco on a site of less than five acres and surrounded by urban uses. The project site has no value as habitat for endangered, rare, or threatened species as it is in a built-out environment and is currently disturbed as the site of an existing building and parking lot. Additionally, as detailed in the ECA, approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality, and it would continue to be adequately serviced by all required utilities and public services. Therefore, the circumstances support the application of the categorical infill exemption under CEQA Guidelines.
In addition to the above exemptions, the ECA demonstrates that the proposed project is within the scope of and consistent with the DSASP program EIR and addendum and would not necessitate the need for preparing a subsequent environmental document pursuant to CEQA Guidelines 15162 and 15168. Under this ECA, the City uses a written checklist to evaluate the site and the activity to determine whether the environmental effects of the proposed project were sufficiently analyzed under the Downtown Station Area Specific Plan (DSASP) program EIR (CEQA Guidelines Section 15168(c)(4)).
Specifically, the ECA for the Bertolucci 421 Cypress Avenue, 209 and 213 Lux Avenue Project
considers whether any new environmental effects not identified in the DSASP program EIR might be created by construction and operation of the project and concludes that all environmental effects were previously analyzed, no new mitigation is necessary, and no additional environmental review is required. In order to support the ECA analysis, the applicant provided the following technical studies, which were peer reviewed by City staff and consultants:
• Air Quality, Greenhouse Gas, and Health Risk Assessment - Illingworth & Rodkin, Inc
• Historic Resources Report - Brewster Historic Preservation
• Noise Assessment - Salter
• Phase I Environmental Assessment - RMD Environmental Solutions
• Preliminary Geotechnical Investigation - Cornerstone Earth Group
• Shadow Analysis - Studio T-Square
• Transportation Study - Hexagon Transportation Consultants, Inc.
The ECA establishes the following:
1. This subsequent Project is within the scope of the project covered by the Final EIR for the City’s DSASP.
2. This subsequent Project will have no additional significant environmental effects not discussed or identified in the DSASP program EIR;
3. No substantial changes to the DSASP are proposed as part of this Project. Further, no substantial changes have occurred with respect to the circumstances under which the DSASP program EIR was certified, and no new information, which was not known and could not have been known at the time that the DSASP program EIR was certified as complete has become available.
4. No new or additional mitigation measures or alternatives are required.
5. All applicable policies, regulations, and mitigation measures identified in the DSASP program EIR will be applied to this subsequent Project or otherwise made conditions of approval of this subsequent Project.
CONCLUSION
The proposed mixed-use development at 421 Cypress Avenue, 209 & 213 Lux Avenue is designed to be consistent with both General Plan goals and the Zoning Ordinance requirements. The project would develop 99 residential units, with 15 affordable units (15% of the proposed number of units), retain a legacy business (Bertolucci’s), and include substantial streetscape and pedestrian safety improvements and amenities on Cypress and Lux Avenues and Tamarack Lane, as well as provisions for bicycles and alternative modes of transit.
Further, the proposed project will provide a high-density residential development that fulfills the guiding principles of the DSASP. The project will revitalize an underutilized parcel, add a robust population of new downtown residents; offer housing near employment uses, focus investment in the Downtown area, and centralize new transit-oriented development close to the relocated and enhanced Caltrain station.
As such, staff recommends that the Planning Commission take the following actions:
1. Adopt a resolution determining that the project is consistent with an adopted Program Environmental Impact Report/Addendum for the Downtown Station Area Specific Plan and, based on the Environmental Consistency Analysis, would not necessitate the need for preparing a subsequent environmental document pursuant to the criteria of CEQA Guidelines Sections 15162 and 15168, and based on that analysis is also statutorily and categorically exempt from CEQA pursuant to Government Code Section 65457, Public Resources Code Section 21166, and CEQA Guidelines Sections 15168 and 15332;
2. Adopt a resolution making findings and approving a Design Review (DR21-0005), Transportation Demand Management Plan (TDM21-0002), and Density Bonus (DB22-0001), subject to the attached Conditions of Approval.
Attachments
1. Design Review Board (DRB) Comment Letter, dated July 1, 2021
2. Planning Commission Minutes, August 18, 2022
3. Public Comment Letters Received To-Date
Exhibits to Associated CEQA Resolution (22-578)
A. Environmental Consistency Analysis (ECA), dated November 16, 2022
1. Historic Resource Evaluation, dated May 2021
2. California Historical Resources Information System (CHRIS) Letter, dated April 28, 2022
3. Phase I Environmental Site Assessment (Phase I), dated January 18, 2022
4. Geotechnical Feasibility Study, dated April 7, 2022
5. Plans, dated August 6, 2021
6. Traffic Study, dated December 10, 2021
7. Transportation Demand Management Plan, dated January 12, 2022
8. Preliminary Environmental Noise Study, dated May 3, 2022
9. Community Health Risk Assessment, dated February 3, 2022
10. Shadow Study, dated April 12, 2022
Exhibits to Associated Entitlements Resolution (22-579)
A. Draft Conditions of Approval
B. 421 Cypress Avenue, 209 & 213 Lux Avenue Project Plans, dated August 6, 2021
C. Transportation Demand Management (TDM) Plan, dated January 12, 2022
D. Applicant’s Incentive/Waiver Justification, dated December 1, 2022
E. Density Bonus & BMR Unit Information Request Form