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HomeMy WebLinkAboutCED Northgate Town Square Project____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: December 2, 2024 Disposition: Resolution 15359 x Waived further reading of the Ordinance and referred to it by title only, and introduced the Ordinance x Resolution 15360 Agenda Item No: 5.a Meeting Date: December 2, 2024 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community and Economic Development Department Prepared by: Micah Hinkle, Community and Economic Development Director City Manager Approval: ______________ TOPIC: NORTHGATE TOWN SQUARE PROJECT - CONSIDERATION OF THE ENVIRONMENTAL IMPACT REPORT AND PROJECT ENTITLEMENTS TO REDEVELOP THE EXISTING NORTHGATE MALL PROPERTY LOCATED AT 5800 NORTHGATE DRIVE SUBJECT: NORTHGATE TOWN SQUARE PROJECT-( 5800 NORTHGATE DRIVE)– PUBLIC HEARING TO CONSIDER THE PROJECT, WHICH INCLUDES AN ENVIRONMENTAL IMPACT REPORT, ENTITLEMENT REQUESTS FROM MERLONE GEIER PARTNERS, LLC FOR A REZONE FROM GENERAL COMMERCIAL DISTRICT TO PLANNED DEVELOPMENT ZONE, A VESTING TENTATIVE SUBDIVISION MAP, A MASTER USE PERMIT INCLUSIVE OF AN AFFORDABLE HOUSING AGREEMENT, AN ENVIRONMENTAL AND DESIGN REVIEW PERMIT, AND A MASTER SIGN PROGRAM TO ALLOW A COMPREHENSIVE REDEVELOPMENT OF THE EXISTING NORTHGATE MALL INTO A PHASED MIXED-USE DEVELOPMENT RECOMMENDATION: Consistent with the Planning Commission’s approval of Resolution Nos. 24-06, 24-07, and 24-08, it is recommended that the City Council receive staff’s report, hold a public hearing to receive public input on the Final Environmental Impact Report (FEIR) and Project, and take the following actions: 1.Adopt a Resolution certifying the Final Environmental Impact Report (FEIR) for the Northgate Town Square Project (Attachment 1) 2.Introduce an Ordinance to adopt a Zoning Amendment to establish the Northgate Town Square Planned Development (PD) District, approve the Northgate Town Square Development Plan, amend the City’s Zoning Map, and rezone the 44.76-acre Northgate Mall property from General Commercial to the Northgate PD District and including adoption of Findings of Fact, a Statement of Overriding Consideration, and a Mitigation Monitoring and Reporting Program (MMRP) for the Northgate Town Square Project (Attachment 2) 3.Adopt a Resolution approving the Vesting Tentative Subdivision Map, Master Use Permit inclusive of a project wide affordable housing agreement, Environmental and Design Review Permit, and Master Sign Program for the Northgate Town Square Project (Attachment 3) EXECUTIVE SUMMARY: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 The Project applicant (Merlone Geier Partners, LLC) proposes the phased redevelopment of the existing Northgate Mall on approximately 45 acres of commercially designated land. Redevelopment of the site is complex and requires careful consideration of a variety of components including demolition of existing structures, coordination with existing leases and tenants, compliance with General Plan policies and zoning regulations, and incorporation of community input. Given the size of the site and complexity associated with redevelopment, the Project design has been reviewed at several public meetings over the past three years to provide opportunities for review and input by members of the public and city review authorities, including the Planning Commission and Design Review Board (DRB). The Project has gone through several modifications and revisions since it was initially submitted in 2021. Most recently, the Project was considered by the Planning Commission at a public hearing on October 29, 2024 (Staff Report). At that meeting the Planning Commission approved Resolution Nos. 24-06, 24-07, and 24-08, recommending the City Council certify the Environmental Impact Report (EIR), rezone the property, and approve project entitlements. This staff report builds upon previously published staff reports and more specifically builds upon the staff reports prepared for the September 24, 2024, and October 29, 2024, Planning Commission meetings which include discussion specific to overarching topics. As referenced in these staff reports, the Revised Project submitted in June 2024 represents the final iteration of the Project that seeks to balance review authority and public input with the complexities associated with redevelopment of the site. The only change to project plans since the October 29, 2024, Planning Commission hearing is the modification to the sign program in response to Planning Commission feedback and as discussed in greater detail in the Analysis section below. The Response to Comments (RTC) Document for the Project was released on October 18, 2024, including responses to comments received during the public comment period on the Draft Environmental Impact Report (DEIR) and analysis of the Revised Project submitted on June 4, 2024. A subsequent Addendum was published on November 22, 2024, to respond to several additional public comments. This staff report provides an overview with specific references to the Final Environmental Impact Report (FEIR) as appropriate. The Planning Commission approved Resolution No. 2024-06 recommending that the City Council certify the EIR, approve findings of fact and overriding considerations, and adopt a mitigation monitoring and reporting program (Attachment 4). This staff report also provides a brief overview of the Project entitlements and consistency analysis and references the detailed findings included in approval documents for City Council consideration. The Planning Commission approved Resolutions No. 24-07 and -08 recommending City Council approval of a Zoning Amendment, including modifications to the City’s Zoning Map, Vesting Tentative Subdivision Map, Master Use Permit, Environmental and Design Review Permit, and Master Sign Program for the Project (Attachments 5 and 6), subject to certain changes to conditions of approval. Those changes have been incorporated into the proposed conditions of approval that staff are recommending the City Council approve. In accordance with Chapter 14.02 (Organization, Applicability, and Interpretation), Section 14.02.020 (General Rules for Applicability of Zoning Regulations) Subsection (J) of the San Rafael Municipal Code (SRMC), because the Project is seeking multiple permits, some of which require Planning Commission approval (Vesting Tentative Subdivision Map, Master Use Permit, Environmental and Design Review Permit, Master Sign Program), and others require City Council approval (Zoning Amendment), a final decision to approve, conditionally approve, or deny the Project is the responsibility of the City Council. The Planning Commission provided recommendations to the City Council for consideration, however it is the City Council that has the exclusive and final approval authority over the Project. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 In addition to those items reviewed and recommended by the Planning Commission, the item before the City Council for consideration also includes approval of a project-wide affordable housing agreement, including parcel-specific affordable housing agreements that would be recorded in the future (Attachments 3 – Exhibits D, Di, Dii, and Diii). BACKGROUND: Site Description/Setting The Project Site is currently developed with the Northgate Mall, which is generally oriented on a north- south axis, with the main building located in the center of the Project Site and surrounded by surface parking and standalone buildings and structures. The main mall building, which is a total of approximately 605,283 square feet in size, consists of five sections: (1) Mall Shops East; (2) Mall Shops West; (3) Century Theatre; (4) RH Outlet; and (5) Macy’s. West of the main building is Kohl’s department store, which also includes a small attached unoccupied retail space, a two-level parking structure, and a vacant retail building. A Rite Aid, HomeGoods, and an additional vacant retail building are located east of the main building. The existing gross leasable area (i.e., the total building square footage on the Project Site without the parking structure) is approximately 766,507 square feet. Currently there are a total of 2,899 parking spaces on the Project Site, comprising 2,380 standard spaces, 22 handicap spaces, and 15 van- size spaces within the surface parking lot, 473 spaces within the parking structure, and 9 on-street parking spaces between the main building and Kohl’s building. Automobile access to the Project Site is provided via driveways from Las Gallinas Avenue and Northgate Drive. Landscaping on the Project Site consists of ornamental landscaping, including landscaping strips along the boundaries of the site that contain street trees and shrubs, planters with trees within the surface parking lot, and some mature trees located adjacent to the existing buildings. A total of 679 trees are located on the Project Site. Property Facts Address/Location: 5800 Northgate Drive Northgate Mall at the intersection of Las Gallinas Avenue and Northgate Drive Parcel Numbers: 175-060-12 175,060-40 175-060-59 175-060-61 175-060-66 175-060-67 Property Size: 44.76 Acres Neighborhood: San Rafael Town Center Site Characteristics: General Plan Designation Zoning Designation Existing Land Use Project Site: Community Commercial Mixed Use General Commercial Shopping Mall, Movie Theatre. Retail Stores, Parking Structure North: GC, O GC, C/O, O Commercial and Office South: HDR, LDR, OS, O PD, O, R 7.5, P/OS, Single and Multi- Family Residences, Offices, Park East: GC, P/QP GC, O, P/QP Commercial, Office, Mt Olivet Cemetery West: OS, O, HDR, MDR, LDR O, PD, HR1.5, HR1.8, OS Multi-Family Residences, Villa Marin Retirement Community, Office Notes: GC = General Commercial; O = Office; C/O = Commercial/Office; HDR = High Density Residential; MDR = Medium Density Residential; LDR = Low Density Residential; OS = Open Space; PD = Planned Development District; HR1.5, HR1.8 = Multifamily Residential Districts: High Density; P/QP = Public/Quasi-Public; R7.5 = Single-Family Residential SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 Requested Entitlements The applicant is seeking approval of the following entitlements for the Project, which includes a variety of development activities over two distinct phases. As discussed in greater detail in the October 29, 2024, Planning Commission staff report, Phase 1 (2025) includes demolition of existing commercial buildings, ongoing operation of some existing commercial uses, construction of new commercial and residential buildings, and installation of other site improvements. Phase 2 (2040) includes buildout of the Project, which encompasses additional demolition of existing commercial buildings, and construction of new commercial and residential buildings. The Project initially included an application for a Development Agreement, however, that application was withdrawn by the applicant as part of the June 2024 Revised Project submittal. • Zoning Amendment (ZC21-001) to rezone the site from General Commercial (GC) to Planned Development zoning and associated Development Plan. • Modifications to Zoning Map to reflect the new PD zoning. • Vesting Tentative Subdivision Map (TS21-002) to create 6 parcels for new residential and mixed-use buildings and 18 parcels for existing and new commercial buildings and existing parking lots. • Master Use Permit (UP21-007) to designate the multiple uses of the site including a mix of residential and commercial uses and privately owned, publicly accessible community space. • Environmental and Design Review Permit (ED21-024) for approval of the overall site plan, building architecture, landscaping, and site improvements. • Master Sign Program (SP-2402) to establish uniform sign standards for all signage associated with the overall Northgate Town Square Project. • Affordable Housing Agreements to establish overarching requirements for provision of onsite inclusionary housing units and including 10% low-income units deed restricted in perpetuity as part of each residential or mixed-use residential parcel and meeting all requirements of City Council Resolution No. 14890. • Privately Owned Publicly Accessible (POPA) Improvements of the project includes privately owned publicly accessible (POPA) open space within the Project, including the Town Square and Bike Hub. Conditions of approval require that the covenants, conditions, and restrictions (CC&Rs) establish requirements for the ongoing maintenance and repair of these improvements. In addition, the conditions of approval require recordation of POPA Improvement agreements specific to each improvement. As noted above and discussed in more detail on page 7 of this report, the Planning Commission considered the project and adopted resolutions recommending that the City Council certify the Project EIR and approve all project entitlements. All entitlements including certification of the EIR are at the discretion of the City Council. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 Figure 1: Phase 1 (2025) Development Plan Figure 2: Phase 2 (2040) Development Plan SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 Prior Public Meetings The Northgate Project has been reviewed at a number of public meetings before the Planning Commission and the former Design Review Board (DRB), all of which are listed below. All comments provided by the Planning Commission and DRB related to the Project’s design are included in Attachment 14. Please note that comments provided by state agencies, local organizations, and individual members of the public on the Project’s environmental documentation prepared pursuant to the California Environmental Quality Act (CEQA) are provided in the FEIR. • Planning Commission and Design Review Board – Joint Study Session, September 14, 2021 o Video o Staff Report • Design Review Board – May 17, 2022 o Video o Staff Report • Planning Commission Study Session – November 29, 2022 o Video o Staff Report • Design Review Board – July 18, 2023 o Video o Staff Report • Design Review Board – September 6, 2023 o Video o Staff Report • Planning Commission – February 13, 2024 o Video o Staff Report • Planning Commission Study Session – September 24, 2024 o Video o Staff Report • Planning Commission – October 29, 2024 o Video o Staff Report ANALYSIS: Entitlements The requested entitlements include a Zoning Amendment, Vesting Tentative Subdivision Map, Master Use Permit, Environmental and Design Review Permit, and Master Sign Program. The following standards of review are applicable to the review of the Project entitlements and were used to determine the consistency of the Project with adopted standards and regulations. • San Rafael Municipal Code: Title 14 – Zoning o Chapter 14.07 (Planned Development District) o Chapter 14.16 (Site and Use Regulations) o Chapter 14.18 (Parking Standards) o Chapter 14.19 (Signs) o Chapter 14.22 (Use Permits) o Chapter 14.25 (Environmental and Design Review Permits) o Chapter 14.27 (Amendments) • San Rafael Municipal Code: Title 15 – Subdivisions o Chapter 15.02 – Major Subdivisions o Chapter 15.06 – Subdivision Design Standards & Miscellaneous Requirements SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7 • San Rafael General Plan 2040 • San Rafael Design Guidelines A more detailed discussion of each entitlement is provided in the October 29, 2024, Planning Commission staff report (Attachment 13). The September 24, 2024, Planning Commission staff report also contains a robust discussion about the Revised Project submitted in June 2024. No additional changes have been made to the project plans since the June submittal except for revisions to the sign program discussed on page 10 of this report in the Sign Program Revisions section. A comprehensive consistency analysis is provided in the attachments listed below and required findings are referenced in detail in the draft approval documents at Attachments 1, 2, and 3. • Attachment 7: Title 14 (Zoning) Consistency Analysis • Attachment 8: Title 15 (Subdivisions) Consistency Analysis • Attachment 9: General Plan 2040 Consistency Analysis • Attachment 10: Design Guidelines Consistency Analysis Affordable Housing Agreement A Project-Wide Affordable Housing Agreement is included at Exhibit Biii of Attachment 3 for the City Council’s consideration. Reference to this agreement is included in the Conditions of Approval, specifically as part of the Master Use Permit. The Master Affordable Housing Agreement must be recorded against the entire Project site within ten (10) days following the effective date of the Zoning Amendment Ordinance. The Master Affordable Housing Agreement requires the Project to comply with San Rafael Municipal Code Section 14.16.030 (“Affordable Housing Requirement Ordinance”) and the City of San Rafael Guidelines for Administration of the Affordable Housing Requirement Program (Resolution No. 14890), or (“Guidelines”). The Affordable Housing Requirement Ordinance and Guidelines require the applicant to provide ten percent (10%) of the total number of units in the Project as affordable to low-income households, earning no more than 80% AMI. The project-wide affordable housing agreement requires the property owner to comply with the BMR Ordinance and Guidelines and allows parcels to be released from the project-wide agreement once parcel-specific affordable housing agreement and declaration of restrictive covenants is recorded on that parcel. The parcel-specific agreement will specify the precise number of affordable units required on said parcel and includes standard restrictive covenants including restrictions on maximum income levels, rent, income verification, auditing, and default provisions. Planning Commission Consideration At their meeting on October 29, 2024, the Planning Commission considered the Project, including Project entitlements and the associated EIR. After receiving public input and discussion and deliberation the Planning Commission approved the following: • Resolution No. 24-06 recommending City Council certify the EIR and adopt findings of fact, a statement of overriding considerations, and a mitigation monitoring and reporting program for the Project (Attachment 4) • Resolution No. 24-07 recommending City Council approve a Zoning Amendment to rezone the property from General Commercial to the Northgate Town Square Planned Development (PD) (Attachment 5) • Resolution No. 24-08 recommending City Council approve project entitlements, including the Vesting Tentative Subdivision Map, Master Use Permit, Environmental and Design Review Permit, and Master Sign Program for the Project (Attachment 6) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8 As part of the Planning Commission’s action to recommend that the City Council approve the FEIR and Project entitlements, the Planning Commission recommended that staff consider whether any additional conditions or project modifications were needed to address the following topics that were brought up as part of public comment. • Consider potential privacy impacts from the proposed townhomes on existing residential units on opposite side of Northgate Drive. • Consider whether additional traffic studies should be required at build out of the project. In response to the Planning Commission’s request, staff evaluated privacy impacts and the need for future project specific traffic studies and determined that both issues have been adequately addressed in the project design and conditions and no further modifications are necessary. More specifically, the Project has been thoughtfully designed to minimize impacts to existing single-family neighbors through the location of higher intensity and density aspects of the Project interior to the site and creating a robust landscape design to provide screening (Figure 3). Grade separation and right-of-way width on Northgate Drive create additional separation between the existing and proposed development. The townhome component of the project is consistent with all applicable development standards and designed in compliance with applicable design guidelines. No changes are recommended as part of the package of entitlements before the City Council for consideration. Figure 3: Northgate Sightline In respect to the need for future project specific traffic studies, the extensive traffic analyses conducted for the Project did not identify potential impacts at operation to warrant a requirement for post construction traffic analysis. No vehicle miles traveled (VMT) impacts have been identified and there are no identified emergency vehicle access risks. Therefore, no change to conditions of approval is proposed as part of the package of entitlements before the City Council for consideration. An additional request as part of the Planning Commission’s recommendation included a request for staff to consider whether any additional conditions or project modifications were needed to address a third issue that was brought up by multiple public commenters. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9 • Consider additional requirements to minimize potential construction impacts on existing neighborhoods. Construction noise is discussed as part of the Project’s environmental analysis and noise mitigation measures are included in the Mitigation Monitoring and Reporting Program (MMRP) to require sound barriers and on-site noise compliance (NOI-1 and NOI-2). Additional mitigation measures are included to minimize construction impacts related to air quality, including AIR-2, AIR-3b, which require standards for diesel-powered equipment and best management practices to minimize fugitive dust. As part of their evaluation staff identified several additional conditions of approval to improve notification and communication during the construction process. In response to the Planning Commission’s recommendation, staff recommends that these additional conditions (listed below) be included to further minimize potential construction impacts on existing neighborhoods. The following additional conditions of approval have been added to the complete list of conditions at Exhibit A to Attachment 3: • COA #15 requiring designation of a Project Liaison, onsite posting with name and contact and required monitoring of construction related complaints, means toward resolution, and two-week notification of the start of construction. • COA #16 requiring posting of allowable construction hours onsite. • Modified COA #22 to include Construction Noise Best Management Practices • Modified COA #23 to include construction noise specific discussion items Sign Program Revisions As part of their action, the Planning Commission added a condition of approval to their recommendation asking for the reconsideration of the number and concentration of freestanding signs proposed as part of the Master Sign Program, with specific emphasis on the number of the taller pylon signs. The Planning Commission supported staff’s recommendation to modify the 25-foot-tall pylon sign proposed at the corner of Los Ranchitos and Northgate Drive to a monument sign. Additionally, the Commission asked for staff and the applicant to consider additional reductions in the number of freestanding signs at key Project entries. Revised plans have been submitted in response to the Planning Commission recommendation that modify the following: • Replace the proposed pylon sign at the northern project entrance on Northgate Drive toa a monument sign. • Replace the proposed pylon sign at the main entrance on Las Gallinas at Del Presidio to a monument sign. • Remove existing Northgate Sign on Las Gallinas. • Remove the proposed pylon sign at the norther entrance on Las Gallinas. • Remove the existing Northgate Sign at the northern entrance on Las Gallinas. • Remove the proposed pylon sign at the Merrydale entrance. • Replace the proposed pylon sign at the intersection of Loas Ranchitos and Northgate Drive with a monument sign. • Add a freestanding five-foot-tall tenant identification sign on Las Gallinas frontage for Pad 2 and Pad 4. These changes are reflected in the revised Sign Program at Attachment 27. These changes reduce the number of proposed pylon signs from six to two, eliminates the two existing Northgate signs on Las Gallinas, increases the number of monument signs by two, and introduces two new freestanding signs SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 10 as tenant identification for Pads 2 and 4. These modifications were proposed by the applicant and reviewed by staff and address the Planning Commission’s comments to reduce the number of tall pylon signs and eliminate the duplication of freestanding signs at key project entrances. The revised sign program is referenced in approval documents before the City Council for consideration as Attachment 3. Additional Conditions of Approval Recommended by the Planning Commission As part of their recommending actions on the Project the Planning Commission modified or added several conditions of approval (listed below). Each of these conditions have been included in the adoption materials before the City Council for consideration. Staff concurs with the Planning Commission and recommends that the following conditions be approved by the City Council as part of the complete list of conditions of approval, Attachment 3 – Exhibit A. New Conditions: • Condition #139 has been modified to clarify that faux turf shall not be used within the project except for within the dog park or any pet relief areas. • Condition #129 has been modified to specify that while new or redeveloped commercial kitchens are not required to be all electric, they shall be built to be electric ready to facilitate conversion in the future. • New condition #125 was added in response to Planning Commissioner concern that design details such as colors and materials be closely considered for consistency with materials presented (including renderings) as part of the entitlement process. Condition #125 requires that the applicant present detailed mock-up of colors and materials with each building permit to allow staff to verify consistency with approved plans and renderings. While not specifically a Planning Commission recommendation, in response to public comment a new condition of approval has been added (COA #91) requiring that the Town Square include: 1. playground amenities specific to toddler-aged children; 2. a drinking fountain; and 3. a shade structure to be incorporated into the playground area DISCUSSION: A number of topics were brought up as part of clarifying questions and public comment at the September 24, 2024, Planning Commission study session. The staff report for the October 29, 2024, Planning Commission hearing included robust discussion of these topics. Several of these topics continue to be important discussion points as part of the consideration of the Northgate Town Square Project and are excerpted for ease of City Council review below. Traffic Impacts Development of the site and the density and intensity proposed is consistent with what is anticipated and planned for in the General Plan. As detailed in Policy M-2.5, the level of service (LOS) intersection standard is “D”, except that in some cases LOS “E” and LOS “F” are considered acceptable, including intersections near the Project Site. The Civic Center Sonoma-Marin Area Rapid Transit (SMART) station is located approximately 0.3 miles east of the Project Site. The current bicycle and pedestrian connection have a gap. A multi-use trail to close this gap is planned in the City’s Bicycle and Pedestrian Master Plan. The applicant is proposing a $500,000 voluntary contribution to support bike and pedestrian path enhancements. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 11 Traffic impacts of the Northgate Town Square Project are evaluated from both a land use and environmental perspective, each with distinct considerations. Land Use From a land use perspective, traffic is considered in terms of the ability of the existing system to accommodate the proposed use, referred to as transportation system capacity. There are several factors to consider when evaluating the capacity of the system to accommodate the proposed use that include, but are not limited to: • Roadway Capacity: Number of lanes, speed limits, signal timing, alternative routes. • Public Transit: Frequency of service, reliability, station capacity, cost to use, accessibility. • Active Transit: Availability of sidewalks, bike lanes, pedestrian pathways, safety, accessibility, both within and outside of the Project Site. When considering whether the transportation system can accommodate the proposed Project, it’s important to look to the City’s long-term vision for mobility. Overall, the General Plan seeks to improve mobility in ways that are safe, efficient, and affordable, and seeks to support the City’s climate action, environmental quality, economic vitality, and social equity goals. The 2040 General Plan represents a shift in the way the City plans for transportation improvements, looking toward a future that is less dependent on single-occupancy vehicles. Specifically, transportation improvements identified in the Plan prioritize cleaner fuels, active transportation, and more convenient and reliable public transit. The General Plan acknowledges that a modality shift will not happen immediately but asserts that providing opportunities to work at or near home, providing a variety of housing types, and maintaining a mix of businesses and services that reduces the need to drive to other communities will help shift San Rafael toward a future where the community is less dependent on car travel. 1 Roadway Capacity Development of the site and the density and intensity proposed is consistent with what is anticipated and planned for in the General Plan. Projected traffic volumes and LOS conditions were developed by the Transportation Authority of Marin (TAM) using a traffic model, which mathematically simulates future traffic flow based on current conditions, the location of future development, and anticipated changes to the road network and modes of travel over the next 20 years.2 As such, policies related to LOS, including Policy M-2.5 which specifies acceptable LOS standards throughout the City, are informed by development of the site at the density and intensity proposed. As detailed in Policy M-2.5, the citywide LOS intersection standard is “D”, except that in some cases LOS “E” and LOS “F” are considered acceptable, including the intersections of Manuel T. Freitas Parkway / Redwood Highway-Civic Center Drive and Merrydale Road / Civic Center Drive, both of which are near the Project Site and were analyzed in the Transportation Operations Study prepared for the Project. Some community members expressed concerns related to traffic congestion, noting that the Project will contribute to congestion at these intersections. Though some intersections in the North San Rafael Area operate below LOS D, these conditions, as well as plans for improvement, are identified and planned for in the General Plan. Specifically, Table 10-1 identifies Major Planned Mobility Improvements for the General Plan horizon (2020 – 2040) including interchange projects, Downtown area improvements, active transportation projects, complete streets and corridors, intersection improvements, and technology infrastructure. Improvements identified near the Project Site include: 1 San Rafael General Plan 2040, Mobility Element, Page 10-1. 2 San Rafael General Plan 2040, Mobility Element, Page 10-17 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 12 • 1A. US 101/Freitas Parkway Interchange West. Reconfigure the US 101 off-ramp/Freitas Parkway (Del Presidio) and Northgate Rd/Freitas Parkway intersection to address safety, circulation, and capacity issues. Improvements would be coordinated with ongoing development plans and anticipated Northgate Planned Development Area (PDA) Specific Plan/Precise Plan process where appropriate. • 1B US 101/Freitas Parkway Interchange East. Reconfigure the US-101 North Bound off- ramp/Civic Center Drive intersection to address safety, circulation, and capacity issues. Improvements would be coordinated with ongoing development plans and Northgate PDA, and future planning process where appropriate. • 3A Includes various projects identified in the 2018 BPMP, consistent with the priorities expressed in that Plan. • 4B Northgate Area Intersection and Complete Streets Improvements. Includes Las Gallinas/Northgate and Las Gallinas/Del Presidio intersections. Also includes improvements to Las Gallinas Avenue and Los Ranchitos Road, Northgate Drive, and Del Presidio Blvd, and continued development of North San Rafael Promenade.3 The City has identified improvements that will help alleviate existing congestion at the intersections listed above. As shown on the City’s Active Projects and Capital Improvement Program (CIP) webpage, plans for ADA improvements, a roundabout, and relocation of an existing bus stop at the intersection of Manuel T. Freitas Parkway / Redwood Highway-Civic Center Drive (Major Planned Mobility Improvements 1A and 1B above) are planned by the California Department of Transportation (Caltrans) and will improve traffic flow and make the intersection and offramp safer for vehicles and pedestrians.4 Staff notes that the Project contributes to the City’s long-term vision for the transportation system in that it will redevelop the site with residential and commercial uses proximate to transit, improve bicycle and pedestrian access on and around the site, and will contribute $500,000 to support path enhancements between the Project Site and the Marin Civic Center SMART station. In addition, the Project is subject to the City’s Traffic Impact Fees, which will contribute funds to the City to implement planned mobility improvements throughout the City based on priorities. Public Transit Public Transit access to and from the site is provided by Marin Transit, Golden Gate Transit, and SMART. The Civic Center SMART station is located at 3801 Civic Center Drive (Marin Civic Center Stop), approximately 0.3 miles east of the Project Site. Currently, pedestrians traveling between the Project Site and the station must either cross over the freeway to access the sidewalk along Civic Center Drive or walk in the roadway along Merrydale Road. A multi-use trail to close this gap is planned in the City’s Bicycle and Pedestrian Master Plan. The Merrydale Conceptual Design Informational Report was prepared by the City in April 2022 to address alternative designs, which generally include a 12-foot-wide shared-use trail along the north and east sides of Merrydale Road between Las Gallinas Avenue and the SMART station. As previously noted, the applicant is proposing a $500,000 contribution to support these enhancements. The San Rafael General Plan’s mobility element includes policy language about maximizing the benefits of the SMART train service (Policy M-4.3), developing pedestrian and bicycle networks that connect residents to major activity and shopping centers (Policy M-6.3), and encouraging high density employment and residential uses near transit hubs (Policy M-3.8). The Northgate Town Center is consistent with this policy direction in building a dense, mixed-use redevelopment in proximity 3 San Rafael General Plan 2040, Mobility Element, Table 10-1, Page 10-23 – 10-24. 4 City of San Rafael, Public Works, Active Projects and Capital Improvement Program (CIP), accessed 10/18/2024 https://www.cityofsanrafael.org/activeprojects/ SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 13 to the Civic Center SMART station and supporting future City plans to enhance the Merrydale connection from the site to the SMART station. Active Transportation The multi-modal site connectivity map at Sheet SD-5 in Attachment 21 (Site Development Plan) shows bike and pedestrian connection to the site. Sheet L-3 and L-4 in Attachment 24 (Landscape Plans) shows bike and pedestrian connectivity within the site, including a variety of different multi-modal paths and bike lanes. These are further enhanced with bike parking and storage and landscape design. Sheets L-38 and L-39 show some modifications to bike and pedestrian connectivity as part of Phase 2. Overall, the Project proposes improved active transportation options, including associated amenities, through and around the site. See FEIR discussion below for more details related to environmental impacts as it relates to traffic impacts, the technical studies completed for the Project, and the baseline assumptions included in the FEIR in response to public comments and discussed below. Fiscal Impact Analysis A Fiscal Impact Analysis (FIA) was prepared for the Project by Seifel Consulting Inc. (Attachment 15) to compare the fiscal impact of the existing Northgate Mall with the fiscal impact of the proposed Northgate Town Square Project. Based on the FIA, the proposed Project is projected to result in a net positive fiscal impact over the project phases. While redevelopment would result in higher service costs and a smaller fiscal benefit to the City compared to the existing Northgate Mall, the property’s long-term viability, including community and economic benefits are more desirable than the declining commercial-only mall development and are in line with the vision for the North San Rafael Neighborhood. Specifically, investment in the site would stabilize further vacancy, provide a variety of housing, commercial, and recreational opportunities, and would strengthen the role of the North San Rafael Town Center by creating an attractive, thriving area that is an economically viable centerpiece of commerce and activity. The fiscal impact of existing and proposed uses was calculated by subtracting the estimated General Fund costs of providing services from the projected revenue generated by sales taxes, property taxes, and other sources. As shown in Figure 1 in the FIA, revenues under Phase 1 and Phase 2 of the Northgate Town Square Project are projected to increase by approximately $1.85 million and $2.8 million, respectively when compared to existing revenues associated with the Northgate Mall. The Northgate Town Square Project would introduce new residents and workers to the site, which would increase demand for City services as well as generate retail customer demand. As shown in Figure 1 in the FIA, costs associated with the increased demand for City services under Phase 1 and Phase 2 of the Northgate Town Square Project would increase compared to costs associated with the operation of the existing Northgate Mall. The Northgate Town Square Project is projected to generate a positive net fiscal impact to the General Fund of $531,000 from Phase 1 and $77,000 from Phase 2. Although the positive fiscal impact of the Northgate Town Square Project to the City would be less when compared to the existing Northgate Mall, the tax revenue associated with the Northgate Mall is expected to continue to decline with or without its redevelopment. The Mall’s sales tax revenue generation is limited by the small number of large tenants (Macy’s & Kohls) and declining occupancy by other tenants, representing a lack of economic diversity and stability. As detailed in the General Plan 2040, sales taxes were the single largest revenue stream in the municipal budget in 2019 and as such, the decline in sales taxes and reliance on a few large-scale tenants represents an unsustainable land use pattern and lack of economic viability upon which the City may rely. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 14 The Northgate Town Square Project proposes revitalization of the declining Northgate Mall into a mixed- use development that is consistent with land uses envisioned in the General Plan for areas designated Community Commercial Mixed Use, in that the Project combines housing and commercial uses. Development of for-sale townhomes, rental apartments, publicly accessible open space, multi-use paths, and commercial buildings of varied sizes and configurations within proximity to one another and near public transit represents a development pattern that is consistent with the vision for the North San Rafael Town Center, which has been continually analyzed through planning studies for almost 30 years. Specifically, prior planning studies envision the North San Rafael Town Center Neighborhood and the Northgate area as a walkable Town Center that strengthens community identity, fosters cohesion, offers public art, shops, restaurants, and entertainment, and evolves to become the heart of North San Rafael, featuring a Town Square and pedestrian-oriented environment that will also enhance its retail success. Revitalization of the Northgate Mall into Northgate Town Square is not only consistent with the vision for the area, but will also provide several community benefits, including economic benefits and an expanded customer base for the City’s retailers. The Project would provide new revenue sources that can be used to fund improved and expanded City infrastructure and services that would benefit existing uses in the City as well as the proposed Project. The Project also provides opportunities to stimulate economic growth by providing commercial spaces that range in size from 3,800 to 55,360 square feet, thereby attracting a variety of business types and sizes, from small-scale locally owned business to regional and national commercial businesses that otherwise could not or would not occupy the site in its current state due to a lack of suitable space, an undesirable land use pattern, and/or a lack of predictable customer base. The Project represents a more sustainable economic model as compared to the Northgate Mall as it creates an active bicycle, pedestrian, and transit-oriented environment that attracts residents, recreational users, and individuals seeking specific services to the area which creates a more stable, predictable, and diverse customer base for businesses of all types and sizes. ENVIRONMENTAL ANALYSIS: In accordance with the requirements of the California Environmental Quality Act (CEQA), an Environmental Impact Report (EIR) was prepared for the Project, including the FEIR which is before the City Council for consideration along with all Project entitlements. The purpose of the Project-level Northgate Mall Redevelopment Project EIR is to inform decision makers for the City of San Rafael, other responsible agencies, and the public of the potential environmental consequences of implementing the proposed Northgate Town Square Project, identify ways that environmental impacts can be reduced, and disclose substantial adverse impacts that cannot be avoided or significantly reduced. The City Council must certify that the FEIR has been adequately prepared in compliance with CEQA before proceeding to consider approval of the Project. It should be emphasized that the purpose of CEQA is to protect the environment, to the greatest extent possible, from harm caused by development projects; serve as an informational tool to identify and disclose environmental impacts and mitigation measures to reduce or eliminate those impacts; provide a framework for recommending- and decision-making bodies, such as the Planning Commission and City Council, to weigh environmental consequences of a project with its benefits before making a decision; and provide opportunities for public participation. It also should be recognized that CEQA is intended to address physical effects of a project on the environment. While economic or social effects may be relevant to the decision whether to approve a project (for example, causing increased use of a public facility), they are not topics for consideration in the EIR unless they might lead to deterioration or other physical effects. To date, the following has occurred regarding environmental review of the Project: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 15 • December 9, 2021 – A Notice of Preparation (NOP) was mailed and published. • January 11, 2022 – A scoping meeting was held to receive public comments on the environmental topics that should be studied. • January 5, 2024 – The DEIR, Notice of Completion, and Notice of Availability were distributed for public review and comment. • February 13, 2024 – The Planning Commission held a meeting to receive comments on the DEIR. • March 5, 2024 – The 60-day public comment period on the DEIR closed. • October 18, 2024 – The RTC Document was made available for review. • October 29, 2024 – The Planning Commission recommended certification to the City Council • November 22, 2024 – Addendum to the RTC Document published. As detailed above, the Northgate Town Square Project requires approval of multiple permits, some of which require Planning Commission approval, and others, City Council approval. In accordance with Chapter 14.02 of the San Rafael Municipal Code (SRMC), because one Project entitlement requires City Council approval, certification of the FEIR and approval of all permits is the responsibility of the City Council. At the October 29, 2024, Planning Commission hearing the Planning Commission considered the adequacy of the FEIR as well as considered all permit applications and approved Resolution No. 24- 06 recommending the City Council certify the FEIR and adopt findings of fact, statement of overriding considerations, and mitigation and monitoring program. Under CEQA, the Lead Agency's final decision-making body (the City Council) is required to consider the information in the FEIR, along with all information in the record before the City Council, and all other information presented to it, prior to making any decisions on the proposed Project. In the case of the Northgate Town Square Project, because the FEIR has identified significant and unavoidable impacts related to Greenhouse Gas Emissions and Noise (see pages 17 and 18 of the February 13, 2024, Planning Commission Staff Report), adoption of a Statement of Overriding Considerations is required prior to approval of any Project entitlements. Adoption of Findings of Fact and a Statement of Overriding Considerations as well as the Mitigation Monitoring and Reporting Program is part of the Zoning Amendment ordinance as the first entitlement for the Project. Draft Environmental Impact Review (DEIR) Overview As detailed above, the DEIR was published for review on January 5, 2024. The February 13, 2024, Planning Commission Staff Report (Attachment 11) provides an in-depth discussion of the substantive and procedural-related aspects of the DEIR. The following provides an overview of the topic areas discussed in the DEIR and should be referenced where more information on specific topics is desired. Page references to the February 13, 2024, Planning Commission staff report are provided for convenience of review. • Page 10 -11: Notice of Preparation and Scoping • Page 11: Notice of Completion and DEIR Publication • Page 12 – 18: DEIR Summary and Conclusions • Page 18: Statement of Overriding Considerations and Public Benefits • Page 18 – 20: Project Alternatives FEIR Contents and Organization Pursuant to Section 15132 (Contents of Final Environmental Impact Reports) of the State CEQA Guidelines, the Final Environmental Impact Report (FEIR) consists of (a) the DEIR or a revision of the draft; (b) comments and recommendations received on the DEIR either verbatim or in summary; (c) a list of persons, organizations, and public agencies commenting on the DEIR; (d) responses to significant environmental points raised in the review and consultation process; and (e) any other information added by the City of San Rafael. The City has prepared a Response to Comments (RTC) Document to respond SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 16 to all environmental issues raised during the public comment period for the DEIR. The DEIR, together with the RTC Document, including the Addendum to the RTC Document (explained below), constitutes the FEIR for the Project. The required contents of the RTC Document are organized into the following Chapters of Attachment 18: • Chapter 1.0: Introduction discusses the purpose and organization of the FEIR and summarizes the environmental review process for the Project. • Chapter 2.0: Revised Project includes a description of refinements to the proposed Project that were made by the Project sponsor following publication of the DEIR (the “Revised Project”). An evaluation and comparison of the impacts and mitigation measures identified in the DEIR to those of the Revised Project are also included in Chapter 2.0. • Chapter 3.0: List of Commenters includes a list of agencies, organizations, and individuals who submitted written and verbal comments on the DEIR. • Chapter 4.0: Comments and Responses includes reproductions of all comment letters received on the DEIR, a transcript of verbal comments provided at the February 2024 Planning Commission public hearing, and written response to CEQA-related comments. • Chapter 5.0: DEIR Text Revisions includes revisions to the DEIR that were determined appropriate or necessary considering the comments received and responses provided or are necessary to amplify or clarify material provided in the DEIR. FEIR Comments and Responses During the public review period (January 5 to March 5, 2024), the City received a total of 268 comment letters from State and local agencies, organizations, and individuals. Two comment letters were received after the close of the 60-day comment period but nonetheless have been responded to in Chapter 4 of the FEIR. In addition, at the February 13, 2024, meeting, 22 verbal comments from members of the public were received. The Planning Commission accepted public comments and directed City staff to prepare the FEIR. The written responses presented in the FEIR summarize the nature of significant environmental issues raised by each comment and provide a good-faith, reasoned analysis in response. Responses to comments are intended to provide clarification and supplement the information provided in the DEIR, make factual corrections, and explain why certain comments do not warrant further response. Comments on non-CEQA topics are acknowledged for later consideration by the decision-making bodies. Prior to the October 29, 2024, Planning Commission hearing staff determined approximately 20 public comment letters, including two letters from public agencies had been received but not included in the RTC Document. Response to each of those 20 written comments was drafted in an Addendum to the RTC Document (Attachment 19) which was published on November 22, 2024, and distributed to commenting agencies as required by CEQA guidelines. Nothing in these letters or the responses to them raised new CEQA concerns and therefore no re-circulation of the EIR was needed. Summary of Areas of Greatest Concern: Following is a summary of the topics of greatest concern, including some topics that are addressed through master responses, which were raised by commenters and addressed by responses in the RTC Document, regarding the environmental baseline utilized to analyze Project impacts, the transportation analysis methodology used, emergency response and evacuation, fire services, school services, and the use of natural gas in the Project. Full responses are provided in Attachment 18. 1. Environmental Baseline (see Master Response 3 of Attachment 18) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 17 A FEIR examines effects of a Project compared to “baseline” conditions – meaning the situation without the Project – to identify potential impacts. In most cases this means existing conditions at the time the Notice of Preparation is published. However, the DEIR assumed full occupancy of the Northgate Mall for the environmental baseline used. (While the term “full” occupancy is used, the DEIR applied trip generation rates based on nationwide mall data which reflected vacancies and varied activity levels.) The result was that the DEIR found no Project impacts in several topics (for example, less traffic congestion due to fewer vehicle trips generated by the Project compared to baseline conditions). The reason the “full” occupancy assumptions were utilized is because at any time, the mall could become fully occupied without new City discretionary approvals; there are no prohibitions or limitations on the property owner’s right to maximize occupancy of the mall in its current form and state. Several comments objected to assuming full occupancy despite the mall experiencing varying vacancy rates over time. In general, commenters asserted that current vacancy rates mean the mall is less active than assumed by the baseline used and argued that this resulted in the DEIR underreporting traffic impacts, and in turn understating related environmental impacts including air quality, greenhouse gas (GHG) emissions, and noise. Consistent with State CEQA Guidelines Section 15125(a)(1), the DEIR assumes full occupancy of the Northgate Mall’s approximately 766,507 square feet of existing gross leasable area. Section 15125(a)(1) permits the use of an environmental baseline other than current conditions when substantial evidence demonstrates that using a baseline different than the common “existing conditions” approach is factually supported by substantial evidence. In the case of the proposed Project, the use of a full occupancy scenario is factually supported by the following: • The Northgate Mall maintained consistently strong occupancy, except for periods of turnover and re-occupancy, from the time the current owner purchased the mall in the first quarter of 2017 when the total vacancy was 24,553 square feet, or only 3.2 percent of the total leasable square footage, until the COVID pandemic. • The Institute of Transportation Engineers (ITE) Trip General Manual rates for shopping malls are based on gross leasable area, defined as the total floor area designed for tenant occupancy and exclusive use, and include an average retail occupancy, based on the actual operation of shopping centers, whose occupancy and performance inherently vary, thus assuring a reasonable amount of rolling vacancy that may occur at any operating shopping center. • ITE rates for shopping malls do not assume 100 percent of the building space is occupied, but rather rely on surveys of other similar properties, including vacancies. • ITE trip generation rates are widely used in CEQA documents to analyze Project impacts against established thresholds and is based on actual trip generation data collected by ITE for shopping malls across the United States. • In consultation with and approval by City transportation staff, the technical consultant who prepared the transportation reports for the DEIR applied the ITE trip generation methodology to existing and with-Project shopping center gross leasable area at Northgate Mall. • The existing gross leasable square footage of the Northgate Mall (766,507 square feet) has been entitled and may be occupied for retail use at any time as such uses are permitted to operate by- right consistent with the current developed condition of the site. As no new approvals would be required to fill vacant spaces, there is no basis to speculate that in the absence of the proposed Project, regional retail demand would not ultimately be satisfied by retail land uses for any rolling vacancy at the site. The master response to comments related to the environmental baseline concludes that the DEIR, supported by substantial evidence, used the appropriate baseline assumptions for evaluation of the SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 18 environmental effects of the proposed Project and does not understate the potential Project impacts and no further analysis is required. 2. Transportation Analysis Methodology (see Master Response 4 of Attachment 18) Comments received on the DEIR object to the methodology, information, and analysis presented in the Transportation Impact Study (TIS) and Transportation Operations Study (TOS) cited in DEIR Section 4.9 (Transportation). Comments specifically relate to (1) the trip generation rates used for existing conditions; (2) existing traffic volumes on surrounding roadways; and (3) PM peak- hour traffic counts. As discussed above, the baseline condition used in the DEIR assumes full occupancy of the Northgate Mall and is based on realistic (e.g. what could occur based on existing built conditions and permitted retail uses) and historic occupancy rates. The methodology and analysis contained in the TIS and TOS appropriately uses ITE trip generation data that is based on average retail occupancy and actual operation of shopping centers across the United States, including a reasonable amount of rolling vacancy that may occur at any operating shopping center. Both the TIS and TOS were peer reviewed by the City’s on-call transportation consultant and the CEQA consultant retained by the City to prepare the EIR and were determined to comply with the current standards and methodologies required by law, including the City of San Rafael Transportation Analysis Guidelines (TA Guidelines). As such, the baseline assumptions and associated transportation analysis methodology are factually supported by evidence; and therefore, the analysis does not need to be modified. Furthermore, as fully detailed in the RTC Document, no new impacts would result, and no new mitigation measures are required. 3. Emergency Evacuation (see Response B-9-1 of Attachment 18) Commenters expressed concern over emergency evacuation in the event of a wildfire, and whether addition of Project residents would make evacuation more difficult for the existing community, including seniors living nearby. The significance threshold established for evaluation of impacts related to wildfire is whether or not the proposed Project would create new or exacerbate existing conditions. Factors to consider related to wildfire hazards include but are not limited to: (1) proximity between the hazard and the Project location; (2) density of the existing environment and proposed Project; (3) evacuation access and egress; and (4) risk reduction measures applied throughout the community and incorporated into Project design. Wildfire prone areas are typically within the wildland-urban interface (WUI), generally defined as where the built environment intermingles with the natural environment. The Project Site is not located within a State Responsibility Area (SRA) or within a Very High Fire Hazard Severity Zone (VHFHSZ) as mapped by the California Department of Forestry and Fire Protection (CAL FIRE). The southern edge of the Project Site is in a Moderate Fire Hazard Severity Zone – Local Responsibility Area (LRA) as mapped by Marin County and the northwest corner of the Northgate Mall site is in a WUI area as defined by Marin County; both County designations are recognized in the City of San Rafael General Plan 2040. While the Project Site is on the edge of these two designated areas, it is not immediately adjacent to any highly vegetated or undeveloped areas. Furthermore, the City’s vegetation standards for new and existing development (Municipal Code Chapter 4.12) and the City’s Wildfire Protection Action Plan require all owners, regardless of WUI status, to maintain vegetation in ways that reduce wildfire risk, above and beyond state standards relating to vegetation management. As discussed in Section 4.13, Public Services of the DEIR, the population at the site was determined to be consistent with the population projections assumed in the 2040 General Plan and the General Plan SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 19 EIR and was previously planned for by the San Rafael Fire Department (SRFD). Furthermore, the SRFD reviewed the proposed Project as part of the standard development application review process and confirmed that there are no requirements for new facilities, emergency personnel, or equipment to serve the proposed Project. The Marin County Emergency Operations Plan, the San Rafael Emergency Operations Plan, and hazard specific playbooks govern evacuation and response in the event of natural disasters, such as wildfire, and would be implemented should evacuation in the area be necessary. These plans are periodically updated and consider the redevelopment of the Northgate Mall site as planned for in the 2040 General Plan. Evacuation protocols and notifications also implement a tiering system beginning with the areas and populations that are most likely to be affected by emergency events, with consideration of the ability for these populations to have adequate time to evacuate given their location and available roadway capacity and routes, beginning with “mandatory” evacuations to “advisory” evacuations. Shelter in place is often an option for less vulnerable locations; the large “fire-hardened” Project Site (i.e., entirely paved or covered with buildings constructed to current fire code requirements) likely would be the least vulnerable development in the area. The goal of this tiered process is to ensure timely and orderly evacuations that discourage simultaneous or unnecessary evacuation of large populations that could lead to gridlock or slowed evacuation. Therefore, the proposed Project would not prevent or substantially hinder evacuation in the case of a wildfire event. 4. Fire Services (see Response E-2-2 through E-2-5 of Attachment 18) Commenters question the DEIR’s conclusions that the Project will not have significant impacts on fire services, including whether a new fire station is required to serve the Project area. The comments are based in part on preliminary reviews of the proposed Project by the Fire Department suggesting possible need for a station and additional equipment and staffing. The comments also suggest that the DEIR relied too heavily on information and conclusions in the General Plan EIR. The State CEQA Guidelines (Appendix G), used by the City identifies the following significance threshold regarding impacts relative to Project development: Result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives… Based on this significance threshold, the impact evaluation is tied to whether or not physical impacts to the environment would occur (i.e., from new construction), not whether or not the SRFD would require additional staffing, equipment, or funding to serve the proposed development. As the Project was considered and evaluated in the certified General Plan EIR, the DEIR properly tiers from the General Plan 2040 EIR where appropriate and in particular when evaluating the increased population that would occur with the proposed Project. Because the proposed Project is within the population growth projections of the General Plan EIR, and because fire services and facilities were deemed to be adequate to serve new development, the DEIR for the proposed Project relies on the analysis and conclusions of the General Plan EIR in the evaluation of potential impacts to fire services and capacity. However, the EIR also includes Project-specific evaluations of potential impacts to fire services and capacity. The City undertook a comprehensive citywide evaluation of the adequacy of existing fire and emergency medical service capacity and infrastructure to serve existing and future demand. The study also included a site-specific evaluation of facilities and projected population of the Northgate area, including the increased population and demand associated with the proposed Project and any potential staffing or resource deficiencies. The study found that no additional facilities or firefighting and emergency SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 20 medical service resources would be needed based on the projected size, density, and incident volume in the Project area. Based on these analyses, the Fire Department changed its preliminary conclusions and determined that no new fire station or other physical improvements are needed as a result of the Project. (See RTC Document, Appendix B). 5. School Services (see Responses A-3-2 and A-3-5 of Attachment 18) Comments stated that new students from the Project would overburden affected schools within the Miller Creek School District (MCSD) and that the required development fees would not be sufficient mitigation to fund needed facilities. Comments also stated that Project traffic would worsen congestion during the pick-up and drop off periods for Vallecito Elementary School and create hazardous conditions. As discussed in the DEIR, the proposed Project’s contribution to the increased enrollment within MCSD is consistent with the student enrollment and population projections considered and evaluated in the certified 2040 General Plan FEIR (refer to Section 4.2, Population and Housing, in the DEIR). Further, the time frame for full buildout of the Project would allow MCSD the opportunity to plan for student enrollment increases in schools serving the Project Site. In addition, development within San Rafael is subject to the Mitigation Fee Act per California Government Code Section 65995. Each school district that serves San Rafael assesses its needs individually based on student generation rates from development, and charges development impact fees accordingly. School districts determine their own development impact fees, often dependent on student generation rates for that district. These payments support the need for new facilities based on the increase in student population in each district. According to California Government Code Section 65995(3)(h), the payment of statutory fees is “deemed to be full and complete mitigation of the impacts of any legislative or adjudicative act, or both, involving, but not limited to, the planning, use, or development of real property, or any change in governmental organization or reorganization...on the provision of adequate school facilities.” Payment of impact fees in compliance with the MCSD’s own developer fee schedule is deemed by State law to ensure that impacts to school facilities would be less than significant, and the DEIR’s less than significant impact conclusion remains valid. Further, the MCSD does not rely on development fees alone to fund its service and facility needs. Other funding sources to cover capital costs include local bond measures and State grants. Lastly, the proposed Project would not conflict with any applicable plans, ordinances, or policies addressing components of the circulation system (pages 4.9-18 through 4.9-22 of the DEIR) and would not substantially increase design hazards on surrounding roadways (pages 4.9-24 through 4.9-27 of the DEIR). Further, as described throughout Section 4.9 (Transportation) of the DEIR, traffic on surrounding roadways would be reduced compared to baseline conditions for both average daily and PM peak-hour trips and would increase slightly for AM peak-hour trips; these calculations would include the transport of new students generated by the proposed Project. 6. Greenhouse Gas Emissions (see Response B-3-12 of Attachment 18) Some commenters were concerned about emissions from gas fire pits.. As identified in Mitigation Measure GHG-1, the City elected to explicitly prohibit such features in the Project. Subsequent Project revisions, as set forth in Section 2.0 of the RTC Document, removed gas-fired fire pits from the Project design entirely. The Project would meet or exceed CALGreen Code Tier 2 voluntary parking standards (refer to pages 4.11-23 and 4.11-24 of the DEIR). The refined Project plans, which demonstrate compliance with these parking standards are included in Chapter 3.0, Project Description, of the DEIR and were therefore included in the analysis. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 21 The DEIR adopts the Bay Area Air Quality Management District’s (BAAQMD’s) recommended GHG significance thresholds, which include a list of design criteria that BAAQMD has concluded demonstrate that a land use project is doing its fair share to meet the State’s GHG reduction goals. The proposed Project meets all of these design criteria except one – the natural gas prohibition – because the Project proposes using natural gas for commercial kitchens. As a result of failing to meet this design criteria, the DEIR found the Project to have a significant unavoidable impact. The DEIR (page 4.11-24) provides a discussion about how such prohibition on natural gas use in commercial kitchens is infeasible, inconsistent with City municipal code, and is legally indefensible. The City’s permitted use of natural gas in commercial kitchen is supported by studies commissioned by the California Public Utilities Commission and the California Energy Commission and California. Thenational brand restaurant operators – likely tenants of the Project – have not yet implemented all-electric kitchen operations and would be discouraged by a prohibition on natural gas.5 As explained on page 4.11-24 of the DEIR, the proposed Project would have a net negative impact on operational GHG emissions because the existing land uses would be replaced with less emission- intensive uses. The DEIR identifies all feasible mitigation measures that are practically available to reduce impacts related to GHG emissions. Additional mitigation measures to further reduce GHG emissions would not change the significant and unavoidable finding because they would not alter the natural gas inconsistency, and they would have only a small effect on reducing GHG emissions since the Project already includes several sustainability features designed to reduce GHG impacts. 7. Air Quality and Construction Health Risk Assessment Comments were raised pertaining to the meteorological data used in the construction health risk assessments (HRA) and that one stationary source was identified that was not included in the cumulative HRA. The HRA (DEIR, Appendix I) utilized meteorological data from the Napa County Airport. Upon review, it was determined the Sonoma Baylands was the most representative data set and the meteorological data for this location was used in the remodeled HRA as presented in Supplemental Air Quality Analysis Technical Memorandum (RTC Document, Appendix A). Incorporating the alternate meteorological data resulted in a maximally exposed individual (MEI) unmitigated off-site risk of 18.60 in 1 million, which would exceed the BAAQMD cancer risk of 10 in 1 million. The on-site unmitigated MEI would be 11.08. (see Appendix A, revised Table 4.10.I). Though the MEI resulting from the revised HRA exceeded BAAQMD thresholds and increased compared to the calculations provided in the DEIR, with implementation of recommended mitigation measures, construction of the proposed Project would not exceed BAAQMD thresholds at the MEI. Additionally, comments were received regarding the absence of the emergency generator at the Marin Specialty Surgery Center from the cumulative HRA. This emission source was added to the BAAQMD’s Stationary Screening Source Map database after “Stationary Source Risk and Screening Report” cited in the DEIR was run. To ensure the inclusion of all potential sources within 1,000 feet of the Project Site, the maximum cumulative health risk was reassessed to include this emission source. As detailed in Appendix A, revised Table 4.10.K, when this source is added, the cumulative risk from all sources within 1,000 feet of the Project boundary would be 40.89 in one million, which is still below the BAAQMD cumulative cancer risk of 100 in one million. 5 Of the national restaurant brands that operate at the project sponsor’s approved West Coast projects, none uses an all-electric prototype design and only Chipotle (a fast-casual rather than sit-down restaurant) is experimenting with an all-electric location. (See FEIR, Section 4.10, Response to Comment B-3-12.) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 22 The supplemental analysis provided in Appendix A of the RTC Document is consistent with the conclusion and do not alter the analysis of impacts cited in the DEIR. Revisions to the DEIR In response to public comments, revisions have been made to the DEIR. Where revisions to the DEIR text are warranted, the RTC Document identifies both the DEIR page number of the revision and text of the appropriate revision. All text revisions made to the DEIR are provided in Chapter 5.0 with new text indicated by double underlined text, and deleted text shown in strikeout. A brief summary of revisions is included below. Revised Project Following publication of the DEIR and close of the public comment period on March 5, 2024, the Project sponsor submitted a revised proposal on June 4, 2024. The re-submitted Project application (Attachment 21 - 32) includes design refinements and revised entitlement requests, referred to as the “Revised Project.” Chapter 2.0 of the RTC Document fully documents and analyzes the Revised Project as compared to the environmental impacts of the Project evaluated in the DEIR. As discussed in Chapter 2.0, the Revised Project does not add significant new information to the EIR and would not substantially change the construction and operational impacts and related mitigation measures identified in the DEIR. The Revised Project would result in a minor increase in the amount of commercial space (1,860 square feet) and retains the same number of residential dwelling units overall. As detailed in the RTC Document, the location, uses, manner of construction, and operational characteristics of the Revised Project are substantially similar to those described in Chapter 3.0 of the DEIR, and as evaluated and where necessary, mitigated in Chapter 4.0 of the RTC Document. The Project refinements made by the Revised Project do not affect the impact conclusions presented in the DEIR. Supplemental Air Quality Memorandum In response to public comments received on the DEIR, a supplemental air analysis technical memorandum (August 13, 2024) was prepared (see discussion above). Results of the supplemental analysis are described in RTC Document, Appendix A. As provided in detail therein, revisions represent a minor change to the DEIR to clarify the analysis. Of note, Mitigation Measure AIR-3a was modified to require equipment greater than 50 horsepower (hp) be Tier 4 rated, and that this equipment be used during all phases of construction. Additionally, revisions to this mitigation measure remove the possibility of an exemption from the requirement. These changes were made to clarify applicable mitigation requirements and to apply more stringent standards for construction emissions. These changes were not made to address any new or more severe impacts as none were identified through the Supplemental Air Quality Analysis. The Supplemental Air Quality Analysis Technical Memorandum does not change the conclusions or analysis of impacts identified in the DEIR, rather it provides additional support for the DEIR conclusions and revised mitigation measures. Findings of Fact Public Resources Code 21081 and Section 15091 of the CEQA Guidelines require that the lead agency prepare written findings for identified significant impacts, accompanied by a brief explanation for the rationale for each finding. The City is the lead agency responsible for preparation of the EIR in compliance with CEQA and the CEQA Guidelines. Section 15091 of the CEQA Guidelines states, in part, that: a) No public agency shall approve or carry out a Project for which an EIR has been certified which identifies one or more significant environmental effects of the Project unless the public agency makes one or more written findings for each of those significant effects, accompanied by a brief explanation of the rationale for each finding. The possible findings are: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 23 1) Changes or alterations have been required in, or incorporated into, the Project which avoid or substantially lessen the significant environmental effect as identified in the FEIR. 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 workers, make infeasible the mitigation measures or Project alternatives identified in the FEIR. Findings of fact are adopted as part of the first project entitlement, the Zoning Amendment, and are therefore included in the draft Ordinance at Attachment 2. Statement of Overriding Considerations Based on the analysis contained in the FEIR, the following impacts have been determined to be significant and unavoidable: • Impact Green House Gas-1: The proposed Project would not incorporate all of the Bay Area Air Quality Management District’s (BAAQMD) recommended design thresholds to reduce GHG emissions due to the use of natural gas in commercial restaurant kitchens and no feasible mitigation measures are available to reduce this impact to a less than significant level. • Impact Green House Gas-2: Because the proposed Project would generate GHG emission that would have a significant effect on the environment, the proposed Project would conflict with applicable plans, policies, and regulations adopted for the purpose of reducing GHG emissions, and no feasible mitigation measures are available to reduce this impact to a less than significant level. • Impact Noise OI-2: Phase 2 operation period noise levels would exceed the City’s land use compatibility thresholds for future on-site sensitive receptors and no feasible mitigation measures are available to reduce this impact to a less than significant level. In accordance with Public Resource Code 21081 and Section 15093 of the CEQA Guidelines, whenever significant impacts cannot be mitigated to a level below significance, the lead agency is required to balance the benefits of the proposed Project against its unavoidable environmental risks when determining whether to approve the Project. If the benefits of a proposed Project outweigh the unavoidable adverse environmental effects, the adverse effects may be considered “acceptable.” In that case, the decision-making agency may prepare and adopt a Statement of Overriding Considerations, pursuant to the CEQA Guidelines, and approve the Project. A Statement of Overriding Considerations as it relates to the significant and unavoidable impacts related to Gree House Gas and Noise are included in draft Ordinance adopting the Zoning Amendment (Attachment 2, Exhibit F). In summary, the Statement of Overriding Considerations finds that the following project benefits outweigh the significant and unavoidable impacts of the project: • The project will implement the San Rafael General Plan 2040 vision for mixed use, transit-oriented development, and high-density housing on the project site; and is consistent with City’s General Plan intent 6 to: o Support new housing and promote the innovative mix of housing types; o Encourage opportunities for new housing in commercial districts; 6 San Rafael. City of. Table 1.2, 2023-2031 Housing Element. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 24 o Promote higher density housing near transit and along bus lines; and o Emphasize inclusive housing opportunities for all segments of the community. • The project will implement the City’s and regional agencies’ designation of the project site as the Northgate Priority Development Area, an area identified by the City and the Association of Bay Area Governments (ABAG) as a place where development can help meet both local and regional housing needs near convenient public transit service. • The project will redevelop the existing mall facility into a mixed-use center with a relevant mix of commercial and retail offerings to support the local economy and provide tax revenues and employment opportunities. • Development of the site will create new housing to satisfy the needs of residents of various economic levels to satisfy the Regional Housing Needs Assessment (RHNA) allocation identified in the City’s 2023-2031 Housing Element. • The provision of 1,422 dwelling units proposed represents 44.1 percent of the City’s total Regional Housing Needs Allocation (RHNA) for the 2023-2031 cycle. As the City has not previously met its RHNA target (only 388 of 1,007 of the allocated units [38.5 percent] were permitted during the first seven years of the 2015-2023 cycle), the proposed project would better ensure the provision of housing sufficient to meet the City’s RHNA allocation. • The project will create a publicly accessible town center/urban village through a combination of retail, dining, and residential uses within a pedestrian-oriented urban core; and • The project will provide new publicly accessible outdoor amenities and open spaces, street improvements, and recreational opportunities interconnected by pedestrian links throughout the project. COMMUNITY OUTREACH: There has been extensive public outreach as part of the review of the Northgate Town Square Project since application was submitted in 2021. The Project has been considered at eight public meetings hosted by the City of San Rafael, as outlined above. The applicant team has hosted several community meetings onsite at critical junctions in the evolution of the project, most recently in September 2024. Additionally, the applicant has sought community feedback through a variety of means from the following organizations: • Responsible Growth Marin • Mont Marin/San Rafael Park • San Rafael Chamber of Commerce • Public Presentation to Community • Villa Marin Town Hall • Terra Linda Neighborhood Association • Marin Organizing Committee • Terra Linda Neighborhood Association • Guide Dogs for the Blind • Mt. Olivet Cemetery • Miller Creek School District • Housing Crisis Action • Alma Via • WTB-TAM • Marin Transit • League of Women Voters • Marin Environmental Housing Collaborative SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 25 • National Night Out • Greenbelt Alliance • YIMBY Action • Marin County Bicycle Coalition • Community-Wide Open House • Canal Alliance • Bay Area Council • Gallinas Watershed Council The City completed expanded public noticing for City sponsored meetings to ensure that those interested in participating were given opportunity to contribute input, including the following. • Public Hearing post cards were sent to all addresses within the 94903-zip code. • Public Hearing posters were installed at five locations on the Northgate Mall site and at the Terra Linda Community Center and the Northgate Library. • Public Notice in the Marin IJ published 15-days prior to the meeting day. • Email notification was sent to individuals and organizations on the City’s interested parties list. • Meeting information was provided on the Northgate project webpage, the Planning Division and Community Development Department webpages, and the City’s News webpage. • Meeting information was provided in the City Manager Snapshot newsletter. Staff have received comments throughout the review process. Comments received since the October 29, 2024, Planning Commission hearing are included at Attachment 33. FISCAL IMPACT: All costs associated with the processing of the application for the Northgate Town Square Project is paid by the applicant through a cost recovery agreement with the City. Additionally, all costs associated with the environmental analysis and preparation of the EIR are paid by the applicant. Fiscal impacts of the overall project at operation are discussed in the analysis section above and more detail is provided in Fiscal Impact Analysis prepared by Seifel Consulting Inc. for the project (Attachment 15). OPTIONS: The recommended actions for the City Council’s consideration would approve the Northgate Town Square Project (as shown in the Revised Project description), consistent with the Planning Commission’s recommendations as formalized in approved resolutions from the October 29, 2024, public hearing and incorporating modifications to conditions to address Planning Commission feedback as discussed above. Alternatively, the City Council may wish to consider alternative options, including the following: 1. Adopt resolutions with modifications. 2. Continue the item with direction to staff to return with additional information. 3. Continue the item with direction to the applicant to modify the project plans. 4. Take no action. RECOMMENDED ACTION: Consistent with Planning Commission’s approval of Resolution Nos. 24-06, 24-07, and 24-08, it is recommended that the City Council receive staff’s report, hold a public hearing to receive public input on the Final Environmental Impact Report (FEIR) and Project, and take the following actions: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 26 1. Adopt a Resolution certifying the Final Environmental Impact Report (FEIR) for the Northgate Town Square Project (Attachment 1) 2. Introduce an Ordinance to adopt a Zoning Amendment to establish the Northgate Town Square Planned Development (PD) District, approve the Northgate Town Square Development Plan, amend the City’s Zoning Map, and rezone the 44.76-acre Northgate Mall property from General Commercial to the Northgate PD District and including adoption of Findings of Fact, a Statement of Overriding Consideration, and a Mitigation Monitoring and Reporting Program (MMRP) for the Northgate Town Square Project (Attachment 2) 3. Adopt a Resolution approving the Vesting Tentative Subdivision Map, Master Use Permit inclusive of a project wide affordable housing agreement, Environmental and Design Review Permit, and Master Sign Program for the Northgate Town Square Project (Attachment 3) ATTACHMENTS: (All attachments are linked and listed below) Resolutions, Ordinances & Exhibits Attachment 1 Draft Resolution Certifying the FEIR Resolution 15359 (adopted by City Council on 12/02/24) Attachment 2 Ordinance Adopting a Zoning Amendment Exhibit A Findings of Fact and Overriding Considerations Exhibit B MMRP Exhibit C Amended Zoning Map Exhibit D General Plan Consistency Table Exhibit E Legal Description Exhibit F Northgate Town Square Development Plan Exhibit G Northgate PD Standards Ordinance 2043 (adopted by City Council on 12/16/24) Attachment 3 Draft Resolution Approving a Vesting Tentative Subdivision Map, Master Use Permit, Environmental and Design Review Permit, and Master Sign Program Exhibit A Conditions of Approval Exhibit A Conditions of Approval (modified by City Council on 12/02/24) Exhibit Ai Mitigation Monitoring and Reporting Program Exhibit Aii Privately Owned Publicly Accessible Property Exhibit B Vesting Tentative Subdivision Map Exhibit C Master Sign Program Exhibit D Project Wide Affordable Housing Agreement Exhibit Di Legal Description Exhibit Dii Rental Units Exhibit Diii For Sale and Condo Units Resolution 15360 (modified and adopted by City Council on 12/02/24) Attachment 4 Planning Commission Resolution No. 24-06 Exhibit A Findings of Fact and Overriding Considerations Exhibit B Mitigation Monitoring and Reporting Program SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 27 Attachment 5 Planning Commission Resolution No. 24-07 Exhibit A Draft City Council Ordinance PD Zoning District Exhibit B Northgate PD Standards Exhibit C Northgate Town Square Development Plan Exhibit D Legal Description Exhibit E General Plan Consistency Table Exhibit F Amended Zoning Map Attachment 6 Planning Commission Resolution No. 24-08 Exhibit A Conditions of Approval Exhibit Ai Mitigation Monitoring and Reporting Program Exhibit Aii Privately Owned Publicly Accessible Property Consistency Analyses Attachment 7 Title 14 (Zoning) Consistency Analysis Attachment 8 Title 15 (Subdivisions) Consistency Analysis Attachment 9 General Plan 2040 Consistency Analysis Attachment 10 Design Guidelines Consistency Analysis Staff Reports & Prior Hearing Materials Attachment 11 Planning Commission Staff Report (DEIR, February 13, 2024) Attachment 12 Planning Commission Staff Report (Study Session, September 24, 2024) Attachment 13 Planning Commission Staff Report, October 29, 2024 Attachment 14 Planning Commission and DRB Feedback Matrix RTC Document and Supplemental Analyses Attachment 15 Fiscal Impact Analysis, Seifel Consulting Inc., September 30, 2024 Attachment 16 Northgate Project Impact Study, Emergency Services Consulting International, 2024 Attachment 17 Fire Interdepartmental Memorandum, September 11, 2024 Attachment 18 RTC Document Attachment 19 Addendum to RTC Document Attachment 20 Supplemental RTC Document Revised Project Plans and Documents Attachment 21 Site Development Plan (Sheets SD-1 – SD-16) Attachment 22 Retail Architecture Plans (Sheets RT-1 – RT-50) Attachment 23 Residential Architecture Plans (Sheets RE-1 – to RE-103) Attachment 24 Landscape Plans (Sheets L-1 – L-62) Attachment 25 Civil Plans (Sheets C-0.2 – C-5.29) Attachment 26 Lighting Plans (Sheets LT-1 – LT-4) Attachment 27 Master Sign Program Attachment 28 Fire Access Plan Attachment 29 Waste and Recycling Plan Attachment 30 Northgate and Nova Albion Street Section Attachment 31 Applicant Prepared Density Bonus Narrative Attachment 32 Applicant Prepared Project Narrative SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 28 Additional Public Comments Attachment 33 Public Comments (Received October 30, 2024, through November 26, 2024)