Title
Report regarding consideration of a Zoning Text Amendment, a Development Agreement, Design Review and Sign Permit to allow for the installation of a 65-foot tall, double-faced, digital billboard on property located adjacent to 140 Beacon Avenue in a PG&E easement along Highways 101 & 380 in the Business Technology Park-High (BTP-H) Zoning District in accordance with Title 20 of the South San Francisco Municipal Code and environmental analysis and determination under the California Environmental Quality Act (CEQA) of project consistency with a prior Mitigated Negative Declaration under CEQA Guidelines Sections 15164. (Christy Usher, Senior Planner)
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RECOMMENDATION
Recommendation
That the City Council conduct a public hearing, follow the recommendation of the Planning Commission, and take the following actions:
1. Adopt a Resolution making findings that the Outfront Media Digital Billboard Project is fully within the scope of environmental analysis in the 2015 Initial Study/Mitigated Negative Declaration and that the 2023 Addendum to the IS/MND is the appropriate environmental document for the Project.
2. Waive reading and introduce an Ordinance to adopt Zoning Text Amendment ZA22-0004.
3. Adopt a Resolution making findings to approve Planning Project P22-0076, including DR22-0022 and SP23-0033 based on the draft findings and subject to the attached draft conditions of approval.
4. Waive reading and introduce an Ordinance to approve a Development Agreement DA 22-0003.
Body
BACKGROUND/DISCUSSION
In 2015, the City Council approved a Zoning Ordinance Text Amendment to allow a maximum of three digital billboards, with two faces each, in the City. Further, Zoning Ordinance states that digital billboards shall only be allowed in a nonresidential district south of Sister Cities Boulevard and north of the City’s southern boundary, and shall be located on parcels immediately adjacent to U.S. Highway 101 (US 101). Notwithstanding the foregoing, digital billboards shall not be allowed on parcels adjacent to San Bruno Mountain or in a location that significantly blocks views of San Bruno Mountain.
The intent was to allow a limited number of digital billboards along US 101 to provide an additional source of revenue for the City, promote economic development, and expand the communication of community services. Currently there are three existing digital billboards in the City located at 101 Terminal Court, 345 Shaw Road, and 180 S. Airport Boulevard. Therefore, a Zoning Text Amendment is required to allow the proposed project currently being reviewed by the City Council, which is a new digital billboard adjacent to 140 Beacon Avenue.
Project Description
On July 14, 2022, Outfront/Foster Interstate (“Outfront Media”) submitted an application for the construction of a double-sided digital billboard on vacant Pacific Gas & Electric (PG&E) land, on the east side of US 101 (north of I- 380) adjacent to 140 Beacon Avenue (“Project”).
The proposed digital billboard will be similar in size and scale to the three existing digital billboards currently constructed in the City. The proposed billboard will be a back-to-back structure with north and south facing 48’ x 14’ LED displays visible to vehicles travelling in both directions on US 101. The proposed billboard will be 65 ft. in overall height.
An “LED billboard” consists of a display surface that supports an image generated by rows of light emitting diodes (LED). The image on the billboard is static for a period of time, not less than eight seconds, before cycling to the next image, and would operate 24 hours per day, seven days per week. Operational details provided by the applicant include the following:
Each LED display would be 48 feet wide by 14 feet tall mounted on a column so that the overall height is approximately 65 feet above grade. The two display faces will be oriented in a V-shape, with each of the two sides angled 7.5 degrees from the centrally located access walkway. The V will meet on the western side such that the displays face the two directions of highway traffic.
Exhibit B to the Entitlements Resolution contains the project plans for the proposed billboard.
Project Site
The currently proposed billboard is located in a fenced vacant lot owned by PG&E, behind a set of three connected commercial buildings on Beacon Street and associated parking. One of the buildings is currently vacant, with the others occupied by Decker Electric Company and K1 Speed - Indoor Go Karts.
The proposed billboard would be located on the eastern side of the site adjacent to U.S. 101 with the footing and overhang in a paved area. An approximately 35-foot-wide landscape strip is located between the paved lot and the U.S. 101 highway to the west, consisting of mixed ruderal and wetland vegetation. Farther west across the highway (at least 300 feet to the nearest building from the proposed billboard site) is located a storage center, and then a commercial complex with some restaurants, office, retail, and commercial uses, approximately another 100 feet to the west.
The project location lot is triangularly shaped, with the fence on the east side, behind the commercial building, meeting the fence on the west side, between the lot and U.S. 101, at the southernmost point. On the northern end are three electrical towers, beyond which is a paved parking lot reaching Colma Creek. The site is surrounded by various commercial uses on the same side of the highway, including largely offices and manufacturing uses, with some retail and other commercial uses. The closest residential areas are located approximately one-half mile both to the west and to the south. Other residential uses can be found approximately a mile to the northwest and approximately 1.3 miles to the north. There are no residences in the vicinity to the east.
ZONING TEXT AMENDMENTS (CHAPTER 20.360)
The City’s Zoning Code 20.360.004(F)(7)(a) limits the maximum number of digital billboards in the City to not more than three. Since there are currently three digital billboards located within the City, a Zoning Text Amendment would be required to allow the proposed project as a fourth digital billboard in South San Francisco.
The proposed zoning text changes are shown below using a strikethrough and double underline format, where text that is struck out is removed and text that is double underlined is added. The following amendment to Chapter 20.360 is proposed:
a. Maximum Number of Signs and Faces. Not more than three four digital billboards, with two faces each, may be allowed within the City, and must be pursuant to the approval of a relocation agreement under Section 20.360.003 <https://library.qcode.us/lib/south_san_francisco_ca/pub/municipal_code/lookup/20.360.003>(A) (“Permits Required; Review Process”).
The Billboard Relocation Agreement mandates that erection of a new billboard is paired with removal of two existing billboards. Per South San Francisco Municipal Code 20.360.003 D(6)(b), if there are no existing billboards to remove, the billboard applicant may instead request the City to enter into a development agreement, which may include in-lieu contributions. The currently proposed billboard is not proposing to relocate or remove billboards. In which case, the applicant would enter into a Development Agreement and contribute in-lieu fees, as permitted per the Municipal Code.
DESIGN REVIEW BOARD
The Design Review Board (DRB) reviewed the project on October 18, 2022. In summary, the Board was not supportive of the proposed digital billboard along the 101 freeway. In general, the Board did not find digital billboards a signage type that is aesthetically pleasing. The Design Review Board Comment letter dated October 26, 2023 is included as Exhibit C to the Entitlements Resolution.
PLANNING COMMISSION RECOMMENDATION
The Planning Commission considered the proposed Digital Billboard at the December 21, 2023 Planning Commission meeting. The Planning Commission unanimously voted to recommend approval of the Project to the City Council. At the meeting, the commissioners supported approving a fourth billboard, and also discussed the appropriate number of digital billboards in the City. Commissioners expressed concern about the possibility of approving too many billboards in the future and agreed that digital billboards should be reviewed on a case-by-case basis. One public comment was received after the Planning Commission meeting and is included for reference as Attachment 1 to this staff report. The Planning Commission meeting and discussion may be viewed online at this link <https://ci-ssf-ca.granicus.com/player/clip/1786?view_id=4&redirect=true&h=7816d7b9d97e5953833ec9c6882ad47c>, and the Planning Commission resolutions are attached to this staff report (Attachments 2, 3, and 4).
DEVELOPMENT AGREEMENT
Outfront Media and the City have negotiated a Development Agreement (“DA”) to clarify and obligate Project features and requirements, including annual fees, community service message display time, and City branding.
Development Agreement Term
The term of the DA would be 30 years.
Fees and Taxes
The DA includes the following financial provisions:
• An obligation for Outfront Media to pay the City an annual amount of $102,000 for the digital billboard ($51,000 per face). The payment amount will increase annually by three percent (3%) per the terms established in the DA. In the event that the City adopts a gross receipts tax in the future, Outfront Media’s annual payment of such gross receipts tax would be deducted from Outfront Media’s annual payment obligation under the DA.
• Outfront Media will pay the City a one-time non-refundable payment of $140,000, payable within six months of the commencement date of the DA.
• A provision for a one-time in-lieu fee payment of $1,100,000 for the one billboard face that is needed to satisfy the 2:1 removal-to-construction ratio requirement.
Community Service Messages
Outfront Media will provide the City with free display time on the digital billboard (one two-week advertising spot for each calendar quarter) for the purpose of advertising the City, City-sponsored events, or other public service announcements.
The proposed DA is attached as Exhibit A to the Development Agreement Ordinance (24-176) and outlines the terms and conditions under which the digital billboard will operate.
GENERAL PLAN CONFORMITY AND ZONING CONSISTENCY
The Project site is designated Business Technology Park - High within the General Plan and is also located within the Business Technology Park - High (BTP-H) Zoning District in the East of 101 subarea. The area primarily contains employment-generating land uses and includes office, life science and other R&D uses, and industrial uses.
As discussed above, the Project would require an amendment to the Zoning Code in order to allow a fourth digital billboard subject to the approval of a Development Agreement, and conformance with specific zoning standards. Subject to approval of the Zoning Text Amendments, the Project would remain consistent with the intent and purpose of the General Plan and complies with the Zoning Ordinance standards related to signage.
ENVIRONMENTAL REVIEW
In 2015, in conjunction with the entitlements for two billboard projects approved for Clear Channel, the City Council adopted an Initial Study/Mitigated Negative Declaration (IS/MND) in accordance with the California Environmental Quality Act, Pub. Resources Code § 21000, et seq. (CEQA). The 2015 IS/MND analyzed the potential environmental impacts of billboards along the west side of US 101. Environmental issues were identified related to Aesthetics, Air Quality, Cultural Resources, Hazards/Hazardous Materials, and Transportation. Subject to the implementation of the mitigation measures discussed below, the stated impacts would be reduced to a less-than-significant impact:
• Aesthetics - The digital billboard will use LED technology to display messages on a lit screen, and therefore could have an impact related to light and glare. The Aesthetics related mitigation measure requires that the applicant perform periodic field testing to demonstrate compliance with a 0.3 footcandle increase over ambient light at 350 feet. If increases in ambient light are above the allowed level, the dimming level shall be adjusted within 24 hours or the billboard shall not be operated until the lighting levels can be brought into compliance.
• Air Quality - Due to the non-attainment status of the air basin, the Bay Area Air Quality Management District (BAAQMD) recommends that projects implement a set of Basic Construction Mitigation Measures. The Air Quality related mitigation measure requires construction contractors to implement all of the BAAQMD Construction Mitigation Measures.
• Cultural Resources - Given the site characteristics, coupled with the regional archaeological sensitivity, there is a moderate potential of unrecorded Native American resources. The mitigation measure requires that the applicant prepare and implement a cultural monitoring and mitigation plan by a qualified archaeologist.
• Hazards and Hazardous Materials - The site has not been assessed for the potential presence of hazardous materials. During the installation process of the billboard, holes would be drilled and the excavated soil would be transported offsite. The project will also include trenching to connect the electrical supply. The first Hazards related mitigation measure would require the site to be assessed for the presence of hazardous materials prior to construction activities, which, if present, would be handled appropriately to ensure the impact would remain less than significant. The second mitigation measure requires the applicant to properly dispose and/or recycle any materials considered electronic waste.
• Traffic - Significant effects could occur if the proposed digital billboard did not comply with restrictions regarding location, intensity of light, light trespass, or other restrictions or visual effects or driver interaction that would cause driver distraction. The first Traffic related mitigation measure requires the applicant to submit an annual report regarding compliance with operating standards. The second mitigation measure requires that the digital billboard comply with operational safety standards, including no moving or flashing lights, and no installation of technologies that would allow interaction with drivers, vehicles, or any device located in vehicles.
For the proposed Project, an addendum to the IS/MND was prepared (2023 Addendum), to analyze impacts of digital billboards on the eastern side of the US 101. The 2023 Addendum found that the proposed Project would not result in new significant environmental effects or a substantial increase in the severity of previously identified significant effects. The mitigation measures identified above in the IS/MND would remain applicable to proposed billboards on the eastern side of US 101.
Fiscal Impact
As discussed above, approval of the proposed digital billboard generates a one-time in-lieu fee payment of $1,100,000 for the one billboard face that is needed to satisfy the 2:1 removal-to-construction ratio requirement; and a one-time non-refundable payment of $140,000, payable within six months of the commencement date of the DA. The project will also generate $102,000 per year in ongoing revenue to the City, with a 3% annual increase to the City. Over the length of the 30-year agreement the City will receive $6.1 million.
CONCLUSION
The proposed Outfront Media Digital Billboard Project will provide an additional source of revenue for the City, promote economic development, and expand the communication of community services along the US 101 corridor, in keeping with the General Plan.
Therefore, staff recommends that the City Council take the following actions:
1. Adopt a Resolution making findings that the Outfront Media Digital Billboard Project is fully within the scope of environmental analysis in the 2015 Initial Study/Mitigated Negative Declaration and that the 2023 Addendum to the IS/MND is the appropriate environmental document for the Project.
2. Waive reading and introduce an Ordinance to adopt Zoning Text Amendment ZA22-0004.
3. Adopt a Resolution making findings to approve Planning Project P22-0076, including DR22-0022 and SP23-0033 based on the draft findings and subject to the attached draft conditions of approval.
4. Waive reading and introduce an Ordinance to approve a Development Agreement DA 22-0003.
Attachments
1. Public Comment, dated December 22, 2023
2. Planning Commission CEQA Resolution
3. Planning Commission Entitlement Resolution
4. Planning Commission Zoning Text Resolution
5. Staff Presentation
6. Applicant Presentation
Associated Resolutions and Exhibits
1. CEQA Resolution 24-173
a. Exhibit A - 2015 Initial Study/ Mitigated Negative Declaration
b. Exhibit B - 2023 Addendum
2. Entitlements Resolution 24-174
a. Exhibit A - Conditions of Project Approval
b. Exhibit B - Project Plans
c. Exhibit C - Design Review Board letter
3. Zoning Text Amendment Ordinance 24-175
4. Development Agreement Ordinance 24-176
a. Development Agreement