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HomeMy WebLinkAboutPlanning Commission 2019-08-27 Agenda Packet AGENDA SAN RAFAEL PLANNING COMMISSION REGULAR MEETING TUESDAY, August 27, 2019, 7:00 P.M. COUNCIL CHAMBERS, CITY HALL, 1400 FIFTH AVENUE SAN RAFAEL, CALIFORNIA • Any records relating to an Agenda Item, received by a majority or more of the board or commission less than 72 hours before t he meeting, shall be available for inspection in the CDD Dept, at 1400 Fifth Ave, Third Floor, San Rafael, CA • Sign Language and interpretation and assistive listening devices may be requested by calling (415) 485-3066 (voice), emailing Lindsay.lara@cityofsanrafael.org, or using the California Telecommunications Relay Service by dialing “711” at least 72 hours in advance. Copies of documents are available in accessible formats upon request. • Public transportation to City Hall is available through Golden Gate Transit, Line 22 or 23. Para-transit is available by calling Whistlestop Wheels at (415) 454-0964. • To allow individuals with environmental illness or multiple chemical sensitivity to attend the meeting/hearing, individuals a re requested to refrain from wearing scented productsTo allow individuals with environmental illness or multiple chemical sensitivity to attend the meeting/hearing, individuals are requested to refrain from wearing s cented products. . THE PLANNING COMMISSION WILL TAKE UP NO NEW BUSINESS AFTER 11:00 P .M. AT REGULARLY SCHEDULED MEETINGS. THIS SHALL BE INTERP RETED TO MEAN THAT NO AGENDA ITEM OR OTHER BUSINESS WILL BE DISCUSSED OR ACTED UPON AFTER THE AGENDA ITEM UNDER CONSIDERATION AT 11:00 P.M. THE COMMISSION MAY SUSPEND THIS RULE TO DISCUSS AND/OR ACT UPON ANY ADDITIONAL AGENDA ITEM(S) DEEMED APPROPRIATE BY A UNANIMOUS VOTE OF THE MEMBERS PRESENT.APPEAL RIGHTS: ANY PERSON MAY FILE AN APPEAL OF THE PLANNING COMMISSION'S ACTION ON AGENDA ITEMS WITHIN FIVE BUSINESS DAYS (NORMALLY 5:00 P.M. ON THE FOLLOWING TUESDAY) AND WITHIN 10 CALENDAR DAYS OF AN ACTION ON A SUBDIVISION. AN APPEAL LETTER SHALL BE FILED WITH THE CITY CLERK, ALONG WITH A N APPEAL FEE OF $350 (FOR NON- APPLICANTS) OR A $4,476 DEPOSIT (FOR APPLICANTS) MADE PAYABLE TO THE CITY OF SAN RAFAEL, AND SHALL SET FORTH THE BASIS FOR APPEAL. THERE IS A $50 .00 ADDITIONAL CHARGE FOR REQUEST FOR CONTINUATION OF AN APPEAL BY APPELLANT. CALL TO ORDER PLEDGE OF ALLEGIANCE RECORDING OF MEMBERS PRESENT AND ABSENT APPROVAL OR REVISION OF ORDER OF AGENDA ITEMS PUBLIC NOTIFICATION OF MEETING PROCEDURES URGENT COMMUNICATION Anyone with an urgent communication on a topic not on the agenda may address the Commission at this time. Please notify the Community Development Director in advance. CONSENT CALENDAR 1. Minutes, August 13, 2019 PUBLIC HEARING 2. 949 Del Presidio Blvd. (Chevron Gas Station) – Requests an Environmental and Design Review Permit, Use Permit, Sign Program, and Major Sign Exception for the reconstruction of the service station and convenience store. The project includes a new 2,964 square -foot minimart, fuel canopy with partial illumination, site signage including a digital price ID sign, 4 fuel pumps, 18 parking spaces (including 8 fueling spaces), and revised landscaping; APN: 175 -322-02; General Commercial (GC) District; Chevron USA INC., owner; Gary Semling of Stantec Architect ure, applicant; File Nos.: ED18-105, UP18-044, SP19-002 and SE19-001. Project Planner: Alan Montes 3. 703 – 723 Third St. and 898 Lincoln Avenue – Request for an Environmental and Design Review Permit, Use Permit and Lot Line Consolidation for the redevelopment of two contiguous Downtown parcels, currently developed with 15,000 sq. ft. of commercial space with a new, 6 -story, 73 ft tall, multifamily residential building with 120 rental units above 121 garage parking lift spaces and 969 sq. ft of commercial retail space. The project includes requests for height and density bonuses, and a front setback waiver; APNS: 011 -278-01 & -02; Second/Third Mixed Use East (2/3 MUE) District Zones; Wick Polite of Seagate Properties, Inc., Applicant; 703 Third Stre et LP, Owners; Case No’s: ED18-018; UP18-008, LLA18-001. Project Planner: Steve Stafford DIRECTOR’S REPORT COMMISSION COMMUNICATION ADJOURNMENT I. Next Meeting: September 10, 2019 II. II. I, Anne Derrick, hereby certify that on Friday, August 23, 2019, I posted a notice of the August 27, 2019 Planning Commission meeting on the City of San Rafael Agenda Board. In the Council Chambers of the City of San Rafael, August 13, 2019 Regular Meeting San Rafael Planning Commission Minutes For a complete video of this meeting, go to http://www.cityofsanrafael.org/meetings CALL TO ORDER Present: Jeff Schoppert Berenice Davidson Aldo Mercado Sarah Loughran Absent: Barrett Schaefer Mark Lubamersky Shingai Samudzi Also Present: Alicia Giudice, Senior Planner Raffi Boloyan, Planning Manager PLEDGE OF ALLEGIANCE RECORDING OF MEMBERS PRESENT AND ABSENT APPROVAL OR REVISION OF ORDER OF AGENDA ITEMS PUBLIC NOTIFICATION OF MEETING PROCEDURES URGENT COMMUNICATION CONSENT CALENDAR 1. Minutes, July 23, 2019 Jeff Schoppert moved and Berenice Davidson seconded to approve Minutes as presented. The vote is as follows: AYES: Jeff Schoppert, Berenice Davidson, Aldo Mercado, Sarah Loughran NOES: None ABSTAIN: None ABSENT: Barrett Schaefer, Mark Lubamersky, Shingai Samudzi PUBLIC HEARING 2. 5800 Northgate Drive (Northgate Mall) –Temporary Use Permit (UP19-027) for a base camp/staging operation area for the movie production for “13 Reasons Why” in a portion of the Northgate Mall Shopping Center parking lot along Las Gallinas Ave; APN: 175-060- 67; General Commercial (GC) Zoning District; XGP XI Northgate LLC, owner; Dan Kemp (for Paramount Television), applicant. File No.: UP19-027. Project Planner: Raffi Boloyan Staff Report Berenice Davidson moved and Aldo Mercado seconded to adopt resolution approving project as presented. The vote is as follows: AYES: Jeff Schoppert, Berenice Davidson, Aldo Mercado, Sarah Loughran NOES: None ABSTAIN: None ABSENT: Barrett Schaefer, Mark Lubamersky, Shingai Samudzi 3. Senate Bill (SB 35) Objective Planning Standards – Informational Presentation on Review of draft “objective” planning design standards and for a ministerial (“by-right”) process required by Senate Bill (SB 35). APN: Citywide, File No: P18-009. Project Planner: Raffi Boloyan Staff Report This was an informational presentation. The Planning Commission provided individual comments. No action was required. DIRECTOR’S REPORT COMMISSION COMMUNICATION ADJOURNMENT ___________________________________ ANNE DERRICK, Administrative Assistant III APPROVED THIS _____DAY OF_______, 2019 _____________________________________ Sarah Loughran, Chair Community Development Department – Planning Division Meeting Date: August 27, 2019 Agenda Item: Case Numbers: UP18-008/ED18-018/LLA18-0011 Project Planner: Steve Stafford/ 415-458-5048 REPORT TO PLANNING COMMISSION SUBJECT: 703 – 723 Third St. and 898 Lincoln Avenue – Request for Use Permit, Environmental and Design Review Permit and Lot Line Consolidation for the redevelopment of two contiguous Downtown parcels, currently developed with 15,000 sq. ft. of commercial space with a new, 6-story, 73 ft tall, mixed-use building with 120 residential ‘rental’ units above 121 garage parking spaces/ mechanical lifts and 969 sq. ft of ground-floor commercial space. The project includes requests for height and density bonuses, and a front setback waiver; APNS: 011-278-01 & -02; Second/Third Mixed Use East (2/3 MUE) District Zones; Wick Polite of Seagate Properties, Inc., Applicant; 703 Third Street LP, Owners; Downtown Neighborhood. EXECUTIVE SUMMARY A proposal to redevelop 27,000 sq. ft. Downtown site with a new, 6-story, 73 ft tall, mixed-use building with 120 residential ‘rental’ units above 121 garage parking spaces/mechanical lifts and 969 sq. ft. ground-floor commercial space has been in the planning process since 2017. The project had initially proposed a 6 story, 66 ft tall building with 138 new residential units above 152 garage parking spaces when first submitted for conceptual review in 2018, then was subsequently reduced of 120 units and 121 garage parking space/mechanical lifts but increased in height from 66 ft to 73 ft (still within 6 stories) to address prior design-related comments and technical code requirements. As currently designed, the project requests major concessions/waivers to certain development standards including a 19 ft height bonus, a 59-unit density bonus above the state mandated 35% bonus, and a waiver of the 5 ft front setback requirements. Under the State Density Bonus law, projects that provide certain affordability levels are eligible for up to 3 concession/waivers and up to a 35% density bonus. This project seeks greater density and height (and a reduction of the required front setback) than outlined in the City’s density bonus regulations, therefore, these are considered ‘major’ concessions¹ under the City’s Density Bonus law and require the submittal of a financial pro forma by the applicant to demonstrate the necessity of the requested modifications. Due to the required financial pro forma, the project will require final action by the City Council (Council), following the review and recommendations of the Design Review Board (Board) and the Planning Commission. During the February 26, 2019 Planning Commission study session to provide preliminary feedback to staff on various policy areas, including the requested density bonus, height bonus and front setback waiver, the mechanical parking lifts and the draft environmental (CEQA) findings, the Planning Commission indicated their support for the current project, including staff’s determination that the project is exempt from CEQA (Section 15332; In-Fill Development Projects), subject to the project providing greater affordability. In response, the formal project submittal now includes a total of 12 affordable or below-market-rate (BMR) housing units; in addition to the nine (9) required BMR units (5 units at the very low-income level and 4 units at the low-income level), the applicant proposes to add three (3) additional BMR units in the moderate- income level for a 10-year term. REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 2 On May 7, 2019, the Board reviewed the formal project submittal for site and building design and unanimously recommended approval with enhanced “Gateway Corner” (Third St. and Tamalpais Ave.) façade treatments (unique materials and colors). Overall, staff is supportive of the addition of housing in this part of Downtown and the project would provide much needed housing near services and transit. Housing supply is a major issue, not only in San Rafael, but throughout the region and state. Housing at this location is the most ideal location for housing in San Rafael, given the proximity to transit, downtown services, and other modes of transportation. The project presents an opportunity to be a catalyst for bringing additional mixed-use housing projects downtown and near transit. Staff supports the proposed 6-story scale of the project, primarily based on the scale of the neighboring BioMarin campus which is 48-67’ in height and includes a height bonus. In accordance with the Planning Commission’s request, the project has voluntarily increased its affordability as much as the applicant states the financial pro forma will allow before the project becomes financial infeasible to construct. Furthermore, given the current economic conditions with costs of land, construction costs, the applicant has demonstrated through a financial pro forma that the number of units are necessary to make the project financially feasible, a standard established by the State. Although the City has not yet seen mechanical parking lifts in any projects, these are trending in development projects in other Bay Area communities and provide more efficient use of land. RECOMMENDATION It is recommended that the Planning Commission adopt the Draft Resolution recommending to the City Council, approval of a Use Permit, an Environmental and Design Review Permit, and a Lot Line Consolidation for the project (Exhibit 2). PROPERTY FACTS Address/Location: 703 - 723 Third St./ 898 Lincoln Ave. Parcel Number(s): 011-278-01 & -02 Property Size: 27,367 sf (combined) Neighborhood: Downtown Site Characteristics General Plan Designation Zoning Designation Existing Land-Use Project Site: Second/Third St. Mixed-Use (2/3 MU) Second/Third St. Mixed-Use East (2/3 MUE) Commercial retail; office North: Hetherton Office (HO) HO Private parking lot; retail South: Lindaro Office (LO) Planned Development (1901) BioMarin parking structure East: Public/Quasi-Public (P/QP) P/QP Bettini Transit Center West: 2/3 MU 2/3 MUE Goodwill BACKGROUND Site Description/Setting: The project site is comprised of two (2) contiguous developed Downtown parcels with a combined 27,367 sq. ft. lot size. The project site has three frontages: Third St., Lincoln Ave and Tamalpais Ave. It is flat (<1% average cross-slope) and located outside the Downtown parking district. The entire site is located within the 100-year flood plain and must comply with FEMA requirements for finished grade. The site is currently REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 3 developed with approximately 15,000 sq. ft. of combined commercial space within two, 1-2-story buildings and a surface parking lot. Access to the project site is currently along all three frontages, Third St., Lincoln Ave and Tamalpais Ave. The west portion of the project site (898 Lincoln Ave.) was originally developed in the 1940s and has a long history of automotive sales and service uses. It is identified in the current General Plan as a ‘housing opportunity’ site. The east portion of the project site (703 Third St.) is relatively newer and was developed in 1995 and until recently long-served the community as “Marin Filmworks”. The east portion of the site is immediately west of the City’s Bettini Transit Center and southwest of the new Downtown SMART station. The BioMarin campus lies south and southwest of the project site. Project History: On March 2, 2017, the project obtained Pre-application review comments from staff. At the time of Pre- application review, the scope of the project was larger than the current proposal and included 138 units above 152 garage parking spaces in a new 7-story (74.5 ft tall) residential building. Following the Pre-Application, the project was slightly revised and reduced in scope. The numbers of units remained at 138. The parking was provided on one level of the building, and included a total of 143 parking spaces, with 135 spaces provided in the form of a mechanical jig saw parking lift system. The design included projections of the upper floors over the public right-of-way (sidewalk), along all three frontages. As required by City code, the Conceptual Design Review application was reviewed by the Design Review Board (Board) on June 20, 2017 (Commission Liaison Schaefer). The general theme of the Board’s comments included the need for a higher-quality ‘Gateway’ design with limited sidewalk encroachments, stepped back upper-stories and ground-floor commercial space, particularly along the Tamalpais Avenue, which are discussed below in greater detail below, in the Design Review Board section of this report. At staff’s request, the applicant agreed to also present the Conceptual Review application to the Planning Commission. Although not required by the code, both staff and the applicant found that this early feedback by the Commission would be helpful.; given the large scale of the project at such key Downtown location. On July 25, 2017, the Planning Commission reviewed the Conceptual Design Review application project and provided the following comments, which were pretty much in line with the Board’s comments: • Scale and building height are acceptable, but look to reduce massing with stepbacks on the upper two floors; • Building design needs to be worthy of ‘Gateway’ location; architecture needs to create a ‘signature’ or ‘statement’; • Site needs an ‘iconic’ high-quality design. • Greater density OK with increased affordability though this may or may not amount to a proposed density bonus. • Commercial space required on ground-floor, particularly along the Tamalpais frontage and maybe the Lincoln frontage. • Parking lifts are acceptable, though operational concerns exist. • Reduction in on-site parking may be supported due to proximity to transit if it improves egress/ingress and circulation. Explore shared parking with BioMarin, establishment of on-site car- share and/or bike-share facility. • Setback waiver may be supported if improvements included in the design to improve the pedestrian experience (i.e., relocate the required landscape setback from 3rd St to Tamalpais and/or additional street landscaping, etc.). • Greater vertical and horizontal articulation required on all elevations. REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 4 • Minimize sidewalk projections to bay windows/balconies set in an irregular pattern. • Minimize or eliminate driveways along the Tamalpais frontage. Formal planning applications were submitted March 2018 with the following design revisions: • Number of units decreased by 18 (from 138 to 120 units); • The unit configuration remains similar, but the unit sizes have decreased an average of 10% (approx.) • Height has increased from 66 ft to 73 ft, but still maintain 6 floors; • Ground-floor commercial space, bike ‘lounge’ storage and lobby areas are proposed along the Tamalpias, Third St. and Lincoln Ave frontages; • All previously proposed projections over the public right-of-have been eliminated; • Upper story of the structure has been stepped back; • Driveway access along the Tamalpais Ave. frontage has been reduced from 52’ to 20’ • On-site parking have decreased from 143 to 121 spaces; • The rooftop common or shared outdoor space has increased; • Rooftop photovoltaic solar energy system has increased; • Site landscaping proposed on the ground-floor, podium- (2nd floor) level and roof has increased; and • Use of varied exterior façade materials, textures and treatments has increased. On February 26, 2019, the Planning Commission held a study session to provide preliminary comments, at the request of staff, on miscellaneous policy areas, including the requested density bonus, height bonus and front setback waiver, the proposed use of mechanical parking lifts and the draft environmental (CEQA) findings. The Planning Commission indicated their support for the current project, subject to the project providing greater affordability, and staff’s determination that the project is exempt from CEQA (California Environmental Quality Act), pursuant to CEQA Guidelines Section 15332 (In-Fill Development Projects), while requesting the Board provide recommendations on the building and site design details. At the request of the Planning Commission, the project has voluntarily increased the proposed affordability, from nine (9) Below-Market-Rate (BMR) units (5 units at very low-income household levels and 4 units at low-income household levels) to 12 BMR units (5 units at very low-income household levels and 4 units at low-income household levels plus 3 BMR units at the moderate-income household levels. On May 7, 2019, the Board reviewed the formal project for site and building design and unanimously (4-0- 2 vote; Planning Commission Liaison Davidson) recommended approval with enhanced “Gateway Corner” (Third St. and Tamalpais Ave.) façade treatments (unique materials and colors). Video from each meeting and the study session may be viewed at www.cityofsanrafael.org/meetings and then clicking on archived “Design Review Board” or “Planning Commission” meetings, and selecting video from the meeting or study session date. REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 5 PROJECT DESCRIPTION Use: The project proposes redevelopment of two contiguous parcels with a new, 6-story, 73 ft-tall, multifamily residential building. The proposed structure would contain a ground floor with 121 parking spaces, common area, lobby, utility areas and a 3,733 sq. ft retail space. Floors 2-6 would host 120 residential rental units. On top of the 6th floor, a roof top deck is proposed with various amenities. The proposed 120 units would be configured as follows: 33 Studio units 342 - 539 sq. ft 44 1-bedroom units 545 - 795 sq. ft. 43 2-bedroom units 899 - 1,068 sq. ft. The average size of the 120 units is 679, sq. ft., ranging from 342 sq. ft. as the smallest unit and 1,068 sq. ft. as the largest size unit. The project does not include a condominium map, therefore, the units would be rental. All existing development on the two parcels are proposed to be demolished. Affordability: Nine (9) of the units are required to be affordable at the very-low income household level with five (5) units affordable to very low-income households and four (4) units affordable to low-income households. The five (5) very low-income units represent 11% affordability of the base project, while the four (4) low income units represents 9% affordability. The provision of 11% of the base project as very low-income units qualifies the project for up to a 35% density bonus and up to three (3) concessions. In response to the Planning Commission study session, the project voluntarily proposes three (3) more of the units to be affordable at the moderate-income household income level for a fixed period of 10 years. With the three additional units, the project proposes a total of 12 units. (affordability of 5 Very Low, 4 Low and 3 Moderate). This is referred as the Proposed Project scenario. Density: The project proposes to construct 120 rental units, which is 59 units above the maximum City density allowed, plus the state mandated 35% density bonus. The maximum local density for the site is 1 unit/600 sq. ft of land area, which equals 45 units (45.6 units rounded down to 45). The project proposes to set aside 20% (or 9 units) of the base 45 units as ‘affordable’. This amount of affordability makes the project eligible for a density bonus of up to 35% and up to three (3) concessions. The 35% density bonus would result in 16 bonus units, for a total of 61 units. The project requests a concession for the increased density above the 35% bonus, as one of the concessions for which they are eligible. Given that the site is a mixed-use zoning district, it is also eligible for up to a 1.5 FAR (in addition to the residential density). As proposed, the project would only include a 969 sq. ft. commercial space on the ground floor, which equals a 0.04 FAR. Site Plan: Vehicular egress and ingress to the project site would be along two, 20’-wide, two-way driveways on both the Tamalpais and Lincoln Ave frontages. Pedestrian access to the project site would be primarily along the Third St. frontage though secondary pedestrian access is provided along both the Lincoln and Tamalpais Avenue frontages. The project proposes development to the property lines, including the front property line (Third St.) which requires a minimum 5 ft. landscaped setback. The lack of building setback is mitigated by the architectural design which incorporates a 5 ft wide handicap ramp setback and a 1 ft landscape planter for a total of 6 ft setback along 122 linear ft of third St (62% of the frontage). The upper REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 6 stories would be built within the property lines and portions of the upper four (4) floors would stepped back. The project requests a waiver to the 5 ft front setback development, as one of their three eligible density bonus concessions Architecture: The project proposes a contemporary design with large, deep-set windows, varied textures of exterior materials and an expansive ‘earthtone/woodtone’ color palette which would provide a unifying visual form along all of the building elevations. A 22’-tall brick veneer podium supports three (3) upper floors with stucco exterior with horizontal dark brown cementitious wood boards creating accent areas. Dimensional bronze metal coping separates the mid floors of the project and the upper two floors, which is punctuated by more stepback, greater use of the horizontal cementitious wood boards and the introduction of vertical gray corrugated siding at each of the four corners of the proposed new building. Large recessed storefront windows are proposed along the ground floor of all three frontages. Recessed balconies are proposed along all of the upper floors of all three frontages. An O-shaped landscaped courtyard is proposed on the podium/2nd floor level which opens to the sky. The amenities proposed for the courtyard create a more centralized reflective seating area. The amenities proposed for the rooftop create groups of more intimate seating areas with amenities including cooking/grilling/dining areas, firepits, and skills games (foosball, darts and cornhole) An expansive photovoltaic solar panel energy system is proposed to share the remainder of the roof. The project proposes a tall (22’) ground floor, to allow the installation and operation of mechanical parking lifts. A Material and Color Board has been prepared by the applicant and will be presented during the Planning Commission hearing. Building Height: The project proposes a building height of 73 ft to the roof deck, composed of 6 stories. The height limit for the site is 66 ft (54 ft base height plus a 12 ft height bonus identified by the General Plan), for residential projects that provide required affordability. The project proposes an additional 7 ft above the allowed 12 ft height bonus (for a total of 19 ft bonus), and this extra height is being requested as a concession, as one of their concessions under the State Density Bonus law. Parking: The project proposes to provide 121 parking spaces on site. All parking would be on the ground floor and that this level would have a taller plate height (22 ft tall) to accommodate the mechanical lifts. The project proposes to provide 109 of the 121 parking spaces through mechanical ‘jig-saw’ lifts and the remaining 12 spaces would be non-mechanical lift spaces for electric vehicle (EV), visitor, ADA and car share Through State Density bonus law, projects that are within ½ mile of a transit facility are required to provide 0.5 parking space/bedroom. In this case, the project includes 163 bedrooms, therefore 81.5 (82) parking spaces would be required to meet the parking required for the residential portion of the project. Since the project site is located outside the Downtown Parking District, the project is also required to provide 3-4 (969 sq. ft. of ground level commercial space at 1 space per 250-300 gross building sq. ft., generally) parking spaces to meet the parking required for the nonresidential portion of the project. The project proposes to provide 121 parking space, which is 35-36 spaces in excess of the required parking. The reduced parking requirement does not count as a concession or waiver, under State Density Bonus law. Landscaping: The project proposes 12,555 sq. ft. (46%) of site landscaping, where a minimum 10% (2,737 sq. ft.) is required. New street trees are proposed along all three building frontages on the ground-floor. A combined 4,528 sq. ft. of landscaped area is proposed on the podium (2nd floor)-level between a central courtyard REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 7 and common outdoor deck areas along the front (Third St. elevation) and rear (adjacent to the paint store located at 770 Second St.) building elevations. A landscaped rooftop amenities area, 5,317 sq. ft. in size, is also proposed. In addition, the project proposes raised Corten steel planters along the ground-floor of the Third St. frontage. Details on specific landscaping species are not provided at this time. ANALYSIS San Rafael General Plan 2020 Consistency: There are numerous General Plan policies applicable to this project. The General Plan contains many competing policies that need to be weighed and considered. Consistency with a General Plan is determined by reviewing and weighing the goals and polices of all elements of the San Rafael General Plan 2020. Overall, the project would be consistent with most of the applicable San Rafael General Plan 2020 policies. The General Plan land use designation of 2/3MU allows office use, office support and service uses and residential uses as part of mixed-use development. After conceptual review, the project proposed ground- floor commercial space and would therefore be consistent with Land Use Policy LU-23 (Land Use Map and Categories). Although the building height and density exceed the standards established by the General Land Use Element Policies LU-8 (Density of Residential Development) and LU-12 (Building Heights)/LU-13 (Height Bonuses), staff finds that there are adequate justifications to support these deviations, including: 1) requesting concessions/waiver under the State Density Bonus law allows the City to consider the deviations through a financial pro forma as it demonstrates that the number of units proposed and the height are needed to make the housing project economically viable; 2) the project does not utilize the 1.5 FAR allowed for non-residential intensity on the site, but instead provides additional residential density; 3) the FEMA flood zone requirements to raise the building site and plate height needed to support stacked parking cause the need to increase the height about the height limit; and 4) Downtown Station Area plan recommendation to allow higher density in these locations. The project site is the most appropriate housing site in San Rafael due to its direct proximity to SMART station, Bettini, Transit Center, U.S. Hwy. 101, and Downtown as a whole. As such, the western half of the project site (898 Lincoln Ave) is listed as an underutilized mixed-use site in Appendix B of the General Plan, as a Housing Opportunity site per H-14 (Adequate Sites) which requires the City to maintain sufficient supply of land for multi-family housing. Housing Policy H-15 (Infill Near Transit) further encourages higher densities adjacent to a transit hub, focusing on the priority development are around the Downtown SMART station. The project also would be in accordance with Housing Policy H-18 (Inclusionary Housing Requirements) by providing 20% affordable housing units or 9 units. The project design likely would be in accordance with Community Design Policy CD-5 (Views), which seeks to respect and enhance to the greatest extent possible, views of St. Raphael’s church bell tower, hills and ridgelines from public streets, parks and publicly accessible pathways. The project site is located within the “Hetherton Gateway” District of Downtown. In compliance with Neighborhoods policy NH-37 (Hetherton Office District Design Considerations), design considerations for this area call for “…high-quality and varied design with landmark features that enhance the District’s gateway image”. New building design should: • Emphasize gateway character by incorporating transitional treatments such as accent elements and public art; • Stepback upper stories; REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 8 • Ground-floors include a pedestrian scale; and • Include useable outdoor areas, courtyards and arcades that are landscaped, in sunny locations and protected from freeway noise. Staff finds the current building design complies with the design considerations of the “Hetherton Gateway” District, as adopted in the General Plan; in that; 1) the large storefront windows, Corten steel raised landscape planters and the brick veneer podium all contribute to the pedestrian scale of the ground-floor; 2) the upper stories have been setback along with staggered (patios), the partial Third St setback and landscape planter enhances the pedestrian scale of the sidewalk experience, 4) The Third St and Tamalpias corner retail provides outdoor seating and exposures; 5) public access to the proposed bicycle valet and storage provides for enhance pedestrian interaction. 6) the rooftop amenity package provides open air recreational areas protected from the noise of Highway 101, and 7) the podium courtyard and rooftop provide landscaped common or shared outdoor areas which are open to the sky and protected from surrounding ambient noise levels. The project would generate 33 net new AM peak hour trips (7- 9am weekdays) and 26 PM net new peak hour trips (4-6pm weekdays). This number of new trips was modeled and found to comply with the Level of Service (LOS) standards prescribed in Circulation Element Policy C-5. The proposed development would occur when adequate infrastructure, including circulation and utilities, are available (Land Use Policy LU-2). A complete analysis of the pertinent policies and programs is presented in the attached General Plan Consistency Table (Exhibit 3). Zoning Ordinance Consistency: The project has been reviewed for consistency with the San Rafael Zoning Ordinance. A complete analysis of the pertinent regulations (standards and criteria) is presented in the attached Zoning Ordinance Consistency Table (Exhibit 4). Overall, the project would be consistent with all applicable regulations of the Zoning Ordinance, with the exception of height, density and front setback, and the applicant has requested concessions to these standards under the State Density Bonus law Chapter 5 – Commercial and Office Districts The project site is located within the Second/Third St. Mixed Use East (2/3 MUE) District, a Downtown Zoning district. The proposed project will require consistency with the property development standards for the 2/3 MUE District, including maximum density (600 sq. ft. of lot area/unit), minimum setbacks (5’ front), building height limit of 66 ft. (54 ft. + 12 ft. height bonus) and minimum landscaping (10% including required front setback). As designed, the project would conditionally comply with the maximum density and height standards for the 2/3 MUE District with a 19 ft. height bonus with the approval of a concession under the State Density Bonus law for a height bonus and a density bonus above the 35% allowed. (see discussion below). The project also would conditionally comply with the minimum setback requirement with a setback waiver as another concession under the State Density Bonus law for meeting the City’s affordable housing requirement (20% or 9 units). The project would comply with the 10% minimum landscape requirement through the inclusion of site landscaping. 2nd floor courtyard, rooftop decks, by providing 46% landscaping. Private and common outdoor area is encouraged rather than required in the Downtown districts. The project includes balconies for many of the units and a common courtyard and roof top deck to provide this requirement. REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 9 As stated earlier in staff’s report, residential uses in the 2/3 MUE District are allowed only as part of mixed- use projects. After conceptual review, the project was revised and continues to include a reasonable size commercial space (969 sq. ft.) on the ground floor. Providing more commercial space on this site is challenging due to the parking and mechanical/utility/refuse infrastructure that are also provided on the ground floor. Chapter 16 – Site and Use Regulations Affordable Housing Requirement Pursuant to Section 14.16.030 (Affordable Housing Requirements) of the Zoning Ordinance, projects proposing 21 or more housing units are required to provide 20% of the proposed units as ‘affordable’ housing units. The base density for this site is 45 units (27,3167 sq. ft. lot/600 sq. ft. density standard). The project proposes to set aside 20% (9 units) of those 45 units as affordable. The City’s inclusionary housing ordinance requires that for rental projects, 50% of the inclusionary units (5 units) be eligible to very low- income households (<50% county median income) and the remaining 50% of the affordable units (4 units) be eligible for low-income households (50%-80% of county median income). The provision of five (5) units as affordable to very low-income households represents an affordability of 11% of the base project in that income category. Under the State Density Bonus law, 11% of total base units affordable in the very low-income category entitles the project to a 35% density bonus (15.75 bonus units, rounded up to 16 bonus units). The 35% density bonus would result in a total of 61 units. This affordability level would also allow the project to seek up to three (3) concessions (concessions requested by the project are: 1) 19’ height bonus, where 12 ft is identified; 2) density bonus above the 35% to allow 59 additional units, above the 16 allowed by state density bonus law; and 3) a front setback waiver under the State Density Bonus law. All three of the proposed concessions requested by the applicant, are considered major concessions (SRMC 14.16.030.H.3.b.v) and therefore are subject to approval of the City Council and require that the applicant demonstrate through a financial pro forma that the concessions are needed to make the project financially feasible. As part of the formal submittal, a financial pro forma was submitted by the developer and has been peer reviewed by a 3rd party economist hired by the city to confirm its conclusions: Density Bonus (Automatic) By providing 5 of the 9 ‘affordable’ units as very low income, project is eligible for an automatic 35% density bonus or a total of 16 additional ‘density bonus’ units above the 45 base units, for a total of 61 units. Additional Density Bonus (Discretionary) The project proposes a total density of 120 units, 75 units above the maximum allowable density on the site and 59 units above the ‘automatic’ 35% state density bonus provided by complying with the City’s affordable housing requirement. The State Density Bonus law allows a City to establish a procedure to consider a bonus above 35% if it chooses. At the request of the Planning Commission during the study session to off-set the proposed additional density, the project has now voluntarily increased the proposed affordability, from nine (9) Below-Market-Rate (BMR) units (5 units at very low-income household levels and 4 units at low- income household levels) to 12 BMR units (5 units at very low-income household levels and 4 units REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 10 at low-income household levels plus 3 units at the moderate-income household levels). Unlike the required affordability, which would have no limiting period, the voluntary increase in affordability is proposed to have a 10-year term. The applicant states the affordability has been increased as much as the financial pro forma will allow before the project becomes financially infeasible pursue and acquire funding. The applicant has provided a to a financial pro forma demonstrating that the additional density bonus results in “identifiable, financially sufficient and actual cost reductions” (underline added) to the project. This concession requesting a density bonus above the maximum allowed under the State Density Bonus law is discretionary, allows staff to hire a consulting economist for peer review (at the applicant’s cost) and requires City Council review and approval. The results of the peer review of the financial pro forma are found below in the discussion section. Height Bonus Concession (Discretionary) The project requests a 19 ft. height bonus, from the maximum allowable building height of 54 ft to 73 ft. In the 2/3 MUE District, both the General Plan and Section 14.16.190 allow a height bonus up to 12 ft (from 54 ft to 66 ft) for complying with the City’s affordable housing requirement as an automatic concession, which is granted if the project provides 20% affordability. The project requests a 19 ft bonus, which exceeds the 12 ft automatic concession by 7 feet, therefore the applicant has requested a major concession to the height standard. Under the City’s Zoning Ordinance (SRMC 14.16.030.H.3.b.v),, concessions not identified 14.16.030.H.3.a. are considered a major concession and require submittal of a financial pro forma. If approved, the concession counts concession under the State Density Bonus law. Setback Waiver Concession (Discretionary) The project also requests a waiver of the required 5’ landscaped front setback for portions of the Third St frontage as a concession under the State Density Bonus law for meeting their required 20% affordable housing requirement. This concession requesting a waiver of the required 5’ landscaped front setback, like the additional 59-unit density bonus above the maximum allowed under the State Density Bonus law, is discretionary, allows staff to hire a consulting economist for peer review (at the applicant’s cost) and requires City Council review and approval. At the time of formal project submittal, the applicant provided a financial pro forma demonstrating that the waiver of the required 5’ landscaped front setback results in “identifiable, financially sufficient and actual cost reductions” (underline added) to the project. In addition, the proposed 0 ft front setback for portions of the building front is compatible with the surrounding built environment as discussed below. Staff supports the requested setback waiver concession. Building Height Exclusion Pursuant to Section 14.16.120 (Exclusions to Maximum Height Requirements) of the Zoning Ordinance, architectural and screening features, and utilities which extend above the maximum allowable building height, may be excluded from height calculations with an Environmental and Design Review Permit. The project proposes a steel shade trellis over the outdoor seating areas and elevator and staircase over runs on portions of the roof deck area which increases the overall height on portions of the project approximately 10’, from 73 ft to 83’, where a maximum 54’ building height is allowed (66’ with height bonus). Similar to the 4’ parapet which surrounds the roof, the REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 11 rooftop trellis and elevator/staircase over runs are architectural features and are excluded from building height calculations, based on the following: • It is an integral shade structure for the common roof deck amenities for the residents; and • It is an architectural or design feature which screens the elevator and staircase shafts for the residential units. Chapter 18 – Parking Standards The typical parking requirements contained in the Zoning Ordinance (SRMC 14.18.040) does not apply to this project, given that it qualifies for reduced parking through the State Density Bonus law. Through this law, projects that are within ½ mile of a transit facility are required to provide 0.5 parking space/bedroom. In this case, the project includes 163 bedrooms, therefore 81.5 (82) parking spaces are required to meet the residential parking requirement. Since the project site is located outside the Downtown Parking District, the project is required to provide 3-4 parking spaces to meet the nonresidential parking required. The project proposes to provide 121 parking space, which is 35-36 spaces in excess of the required parking. The reduced parking requirement does not count as a concession or waiver, under State Density Bonus law and is inclusive of required ADA and guest spaces. Given that the required parking is established under a state law, this reduced number of parking spaces also does not require a Parking Modification. The project also proposes to use mechanical parking lifts to primarily meet the required parking for the project; 109 of the 121 parking spaces are proposed to be provided by mechanical parking lifts, though not the 12 ADA-accessible parking spaces, loading, ride share/care share or electric vehicle charging spaces. The project proposes to use a three-level, semi-automatic, mechanical parking lift system (CityLift Model 3LP) with horizontal and vertical shifting platforms. The parking space dimensions of this mechanical parking lift are: • 17’ ¾” length; • 6’ 6 ¾” – 6’ 10” width; • 6’ 5” – 7’ height; • 5,200 – 6,000 lbs. load per vehicle; and • 33 seconds average retrieval time. The CityLift Model 3LP operates without a pit. The driver remotely engages the system, similar to a garage door opener, where the parking ‘platforms’ will automatically shift to an empty space. Parked vehicles are automatically retrieved by entering the parking space number into the adjacent keypad. Access may be secured by adding metal gates which open automatically only after the shifting process is completed. The Board may learn more on the CityLift Model 3LP through the following link: https://cityliftparking.com/solutions/puzzle-mechanical-parking, which includes a video of how they operate CityLift mechanical parking “Puzzle” stackers are currently operating in Berkeley, Emeryville, Oakland, San Francisco and Healdsburg. The Avalon Public Market in Emeryville (6701 Shellmound St.) is most similar in scale of mechanical parking stacker system as proposed by the project. The Avalon Public Market is a 7-story, mixed-use building with 211 units above a 155 space, 3-level “puzzle” stacker system without a pit and adjacent to public transit. Staff will coordinate a future opportunity to visit the Avalon Public Market or another location with a CityLift Model 3 mechanical parking “Puzzle” stacker system. These proposed mechanical parking stackers are a departure from the parking facility design envisioned by the Parking Standards of the Zoning Ordinance, which is providing parking on a more established horizontal or side-by-side configuration. A Parking Modification will be required, through a Use Permit, with the recommendation of the Public Works Director and the Board, to allow mechanical parking lifts. The REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 12 dimensions of the parking spaces provided by the mechanical parking appear to meet the City’s minimum standards for Downtown (8.5’ x 18’) ‘standard’ parking spaces. The proposed parking also complies with all other applicable parking standards. Under the Zoning Ordinance, residential projects are not required to provide clean air vehicle parking or EV (electric vehicle) charging stations. The project proposes 1 tandem loading space, 4 EV ready spaces, 1 tandem ride share drop off space, and 1 car share space, and 2 visitor spaces. The project also proposes 32 bike storage spaces, although only 4 short-term spaces and no long-term spaces are required for the project. Chapter 22 – Use Permits As discussed previously, the project will require Use Permit approval to allow: 1) Residential uses in a commercial (2/3 MUE) zoning district; and 2) Parking Modification to allow use of mechanical parking lifts to primarily meet the parking requirement for the project. Residential uses area encouraged in the Downtown and in mixed-use development/redevelopment project to help meet the City’s housing needs and “alive-after-five” vision. Automated parking or other mechanical parking devices is one of the strategies identified in the Downtown Parking/Wayfinding Study as an innovative parking solution to maximize valuable parking space areas. Therefore, staff recommends that granting a Use Permit for both these features is appropriate. Chapter 25 – Environmental and Design Review Permits This project typically would require Environmental and Design Review Permit approval by the Commission, given that; it proposes to construct a new multifamily residential structure. However, the City Council will have final decision on the project, following the recommendations of both the Board and the Commission, due to the major concessions requested (additional 59-unit density bonus above the state mandated 35% bonus, 19 ft height bonus, and waiver of required 5’ landscaped front setback) under the State Density Bonus law. The pertinent review criteria for Environmental and Design Review Permits, pursuant to Section 14.25.050 (Review Criteria; Environmental and Design Review Permits), are attached as part of the Zoning Ordinance consistency table (Exhibit 4) The review criteria for Environmental and Design Review Permits require that the proposed design (architecture, form, scale, materials and color, etc.) of all new development ‘relate’ to the predominant design or ‘character-defining’ design elements existing in the vicinity. The scale and quality of the existing development located south of the core Downtown (Fourth St.) and near U.S Highway 101 is changing, primarily due to the ongoing development of the BioMarin campus. Low profile (1- and 2-story) development is being replaced with much taller (5- and 6-story) buildings. Staff supports the 6-story scale proposed by the project. Determining the predominant design character is a little more difficult. Structures within the adjacent BioMarin campus are integrated with a cohesive architectural design with coordinated façade treatments. The project proposes a similar contemporary design though with unique façade treatments (brick with Corten steel planters at the podium level and a mixture of stucco and vertical and horizontal fiber cement board siding at the upper levels), greater articulation, stepping back the upper stories and a more ‘residential’ window proportion. The project design has been revised to include equal, high-quality design attention to all four building elevations. In addition, the formerly proposed building encroachments over the sidewalk have been pulled back and no parts of the upper stories project over the public right-of- way (ROW). One of the reoccurring comments provided by both the Board and Planning Commission during Conceptual Design Review is the project needs to exemplify a building design worthy of its ‘Gateway’ location; REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 13 particularly the northeast corner (Tamalpais Ave. and Third St.) of the building closest to the Downtown SMART station needs to create an architectural ‘statement’. The project has been revised to include a ‘Gateway’ option (Sh. A0.2A) which proposes to accentuate the ‘Gateway’ corner by; 1) Extending the brick façade treatment from the ground-level up levels 2-4 to create the appearance of a ‘tower’ , approx..50’-wide along both the Tamalpais Ave. and Third St. frontages; 2) Further highlighting the uniqueness of the ‘Gateway’ corner and the appearance of a ‘tower’ design with Corten steel panels, similar to the ground-level planter material, on levels 5-6; and 3) Expanding the steel rooftop trellis to ‘cap’ the ‘Gateway’ tower or corner. The Board reviewed and recommended this “Gateway” design option along with the other revisions to the project, which are presented to the Planning Commission. San Rafael Design Guidelines: The San Rafael Design Guidelines have been developed as interim criteria that implement design-related General Plan Policies. The site is located within the Second/Third Corridor and Environs. Second/Third Corridor and Environs Second and Third Streets are to be attractive, landscaped major transportation corridors. While increased pedestrian safety and comfort is desired on Second and Third, greater pedestrian use of the cross streets is encouraged. The project site is located within the boundaries of the Second/Third and Environs area of the Downtown, where the following specific design guidelines apply: • To provide visual interest, long and monotonous walls should be avoided. • Building walls should be articulated; • To create a boulevard effect along Second and Third Streets, varied landscape setbacks are appropriate; • Additional high-canopy, traffic-tolerant street trees are strongly encouraged; • Where possible, residential buildings in this area should orient to the more pedestrian-friendly side street; and • Driveway cuts and widths should be minimized to prevent vehicular conflicts. The project proposes to orient pedestrian activity through the lobby area both through the main entry on Third St and at the northwest corner of Third St./Lincoln Ave. The pertinent Downtown Design Guidelines recommends orienting this lobby entrance to one of the more pedestrian-friendly side streets, either Tamalpais or Lincoln Avenues, where possible. Downtown Station Area Plan: The project site is identified as a “potential development opportunity site” within the Downtown Station Area Plan (SAP). Maximum development is assumed; a five-story mixed-use building with retail uses on the ground-floor facing Tamalpais Avenue (fronting the SMART station). No on-site parking is assumed for the ground-floor retail uses, even though the site is located outside the Downtown Parking District. Auto access and egress occurs on Lincoln and Tamalpais Avenues. The following are recommended land use policy changes from the SAP that are applicable to the project site: Short-Term • Reduce minimum parking requirements to one (1) space for two-bedroom residential units and 1.5 spaces for 3-bedroom units. • Allow tandem parking spaces. Long-Term • Allow one-half space per residential unit to be located off-site in a municipal parking facility. REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 14 • Allow off-site parking for ground-floor retail uses. • Allow unbundled parking, where parking spaces are leased separately from residential units. • Allow bicycle parking in lieu of some portion of the required on-site parking. • Adopt a Form-Based Code and eliminate maximum density and FAR (Floor Area Ratio) limits. Together with requiring no more than one parking space per unit, a Form-Based Code may allow up to 200 residential units within maximum allowable building height and setbacks required on the site. • Allow development ‘bonuses’ (like reduced parking), beyond concessions under the State Density Bonus law, in exchange for community benefits. Examples of community benefits include amenities to support the more transit-oriented surroundings such as wider sidewalks and landscaping, open space or plazas, provisions for car-sharing, and additional affordable housing units above the minimum 20% requirement. • Allow shared parking between daytime retail uses and nighttime residential uses. • Allow stacked parking or parking lifts, to meet required on-site parking. • Explore reconstruction of Tamalpais Avenue to serve as a “Complete Street” to serve all travel modes. In concept, Tamalpais Avenue may be converted to one-way northbound travel with a Class II bicycle lane, pull-out staging areas and wider sidewalks. The proposed project would be consistent with most of the applicable recommendations in the Station Area Plan document. The project has been revised to include a small ground-floor commercial use at the northeast corner of Third St/Tamalpais Ave. Some of the short-term and mid-term recommended changes of the SAP were implemented by the City through recent zoning ordinance amendments. The project proposes reduced parking (see discussion above), a wider sidewalk along the Tamalpais Ave. frontage (existing sidewalks along the Lincoln Ave. and Third St. frontages were widened previously.) and increased landscaping (street trees and raised planters) along all three frontages. The project proposes to meet a bulk of its parking requirement with mechanical parking lifts, which create both stacked and tandem parking configurations. Good Design Principles: On August 14, 2017, an Ad Hoc City Council Sub-Committee convened to discuss “Community Design,” with a primary focus on Downtown development. The Ad Hoc Sub-Committee included Mayor Phillips, Council Member Andrew McCullough, two members of the Design Review Board (former Board Member Spielman and Stewart Summers) and two members of the Planning Commission (former Commissioners Paul and Robertson). The initial purpose of the meeting was to determine if there are adequate tools and resources to facilitate and achieve good design in development in San Rafael. The Sub-Committee was provided with an inventory of our current resources (all referenced in this report), which are abundant and comprehensive. The inventory of documents and regulations include the following: ✓ Downtown San Rafael Vision – 1993 ✓ General Plan 2020 Policies & Programs for Downtown – 2004 ✓ San Rafael Design Guidelines (Interim) – 2004 ✓ Zoning Regulations for Downtown – 2004 ✓ Downtown San Rafael Station Area Plan – 2012 Mayor Phillips assigned former Commissioner Paul the task of forming a working group to review these resources and to develop a more concise and consolidated list of key criteria. The goal was to develop an informational handout (“City of San Rafael Expectations for Good Design”) that can be provided to developers/applicants. Former Commissioner Paul formed a small Working Group of local design professionals and residents to review the above planning documents and regulations and consolidate them REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 15 into more concise criteria. This working group presented their findings and a “Good Design Guidelines for Downtown” slideshow to the Council at their February 5, 2018. There are next steps, which include creating a checklist of these good design principles and adopting them; however, staff is providing the applicable criteria from this presentation as Exhibit 5. The project complies with many of these ‘good design’ criteria. Tamalpais Ave. is identified as a ‘gateway’ to the Downtown with excellent visibility from all transportation modes (pedestrian, bicycle and transit) and the transit center. The project activates the Tamalpais Ave street front by providing a small (969 sq. ft.) ground-level commercial retail space at the corner of Tamalpais Ave. and Third St. The project supports Tamalpais Ave. as a ‘pedestrian street’ by minimizing driveway cuts to a single driveway with a 20’ width and providing ample street tree pockets with grates. Larger and taller buildings, like the project, are anticipated along the Second and Third St. corridors to create a ‘boulevard’ setting. A ‘base, middle and top’ design strategy, similar to the project design, is encouraged though not required. The height and bulk of the project is mitigated by stepbacks, articulation and use of varied exterior materials. Subdivision Ordinance Consistency: The project proposes construction of a new mixed-use building over the current property boundaries of two adjacent legal Downtown parcels. The project is subject to the lot consolation provisions pursuant to Chapter 15.05. of the Subdivision Ordinance. If the project is approved, a new the plat map, showing the existing and proposed new lot lines, and a copy of the Grant Deed for the lot consolidation, shall be submitted by the applicant and reviewed by the City Engineer and approved prior to recordation with the County. This recordation must occur prior to building permit issuance. The project is proposed as a rental project only. The applicant has not indicated their intent to make them individual condominium units. MAJOR TOPIC DISCUSSION The following is a staff analysis/discussion on the main land use matters. Land Use: Residential uses are allowed and encouraged in this portion of the City as part of a mixed-use project. While the project did not initially include any commercial use on the ground floor, the Planning Commission encouraged it and the project has been revised to include 969 sq. ft. of ground-floor commercial space at the southwest corner of Third St/Tamalpais Ave. Providing more commercial space on this site is challenging due to the parking and mechanical/utility/refuse infrastructure space needs that are provided on the ground floor; however, the project sponsor has indicated their intent to monitor future demand for increased ground-floor commercial space within the project and a potential interest to convert or reconfigure the ‘Lobby’ area into additional retail use. Residential Density: The project site contains a total lot area of 27,367 sq. ft (0.63 acres). Under the 2/3 MUE zoning, the project site allows a maximum density of one unit per 600 sq. ft. of lot area, which translates to a maximum allowable density of 45 units on the site. The State Density Bonus law allows an additional 35% (16 units) for a total of 61 units. As noted above, the applicant has requested a 59-unit density bonus above the base density and sate mandated 35% bonus, for a total of 120 units, which translates to a 97% density bonus. The currently proposed 120 residential units, has been reduced since the original 138 units proposed during Pre-Application and Conceptual Design Review. Determining the appropriate density for REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 16 development of a site, typically, is a product of allowable parking (site and building design), traffic capacity, height, design and environmental resources. In this case, the amount of density is further defined by the State density bonus law and a concession requested by the applicant that demonstrates that the 120 units are needed to make the project financially feasible. There are two factors under which this density bonus is to be considered. First is the City’s local provision to consider greater density bonuses than that allowed under State density bonus law. The State Density Bonus provides for bonuses up to 35% for projects that meet certain affordability amounts. The City is not required to grant a density bonus of more than 35%, but it may under State la w (GC section 65915(n)), which states: “If permitted by local ordinance, nothing in this section shall be construed to prohibit a city … from granting a density bonus greater than what is described in this section.” The City in enacting the density bonus law, included a local provision (SRMC 14.16.030.H.2), to allow density bonuses in excess of 35% and states: “the City in its sole discretion, to consider a density bonus exceeding the state minimum requirements where the applicant agrees to construct a greater number of affordable housing units than required pursuant to subsection 14.16.030.B.2 of this section and ne cessary to qualify for the density bonus under this section. If such additional density bonus is granted by the City and accepted by the applicant, the additional density bonus shall be considered an additional concession or incentive” This section was in tended to allow for density bonuses greater than 35% to be considered by the City for projects that provide more affordability in a project tha n the 20% required by the State density bonus, (i.e. a 100% affordable housing project requesting 100% bonus ). In this particular case, the applicant has not proposed any more density than the minimum required to obtain a 35% density b onus. The second factor is consideration of the concession/waiver and whether that concession is necessary to make the project finan cially feasible, based on State density bonus law. If proven that the waiver is necessary to make the project financially feasible, the city must grant the waiver. The applicant has asked for additional density (59 units above the state mandated density bonus) as one of their three eligible concessions/waivers , and through the provision of a financial pro forma, they must show that the concession or incentive is necessary to achieve the offered affordability and make the project financially feasible (Government Code, § 65915(k)(3). At the February 26 study session, the applicant had proposed 120 unit, of which 9 were affordable (5 very low and 4 low). At the request of the Planning Commission to explore more affordability to off-set the proposed additional density bonus, the project has since voluntarily increased the proposed affordability, from nine (9) Below-Market-Rate (BMR) units (5 units at very low-income household levels and 4 units at low-income household levels) to 12 BMR units (5 units at very low-income household levels and 4 units at low-income household levels plus 3 units at the moderate-income household levels for a fixed 10-year term). Furthermore, the pro forma for the project was independently reviewed and confirmed that the 120 units is needed for this project to be financially feasible. In accordance with the City’s ordinance, the City has hired an independent 3 rd party economist, Seifel Consulting, to review the financial pro forma and assess whether the number of units requested ar e necessary to make the project financially feasible. This includes evaluating all the costs associated with the acquisition, construction and operation of the project. The applicant submitted a pro forma that evaluated the base case (45 units, of which 9 are BMR)and the density bonus proposal (120 units, of which 1 are BMR (5 very low, 4 low and 3 mods at 10 years) REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 17 The pro forma evaluates the Base Case scenario (61 units, which includes the 35% density bonus) as well as the Proposed Project scenario (120 units). The actual pro forma and specific numbers contained in the pro forma are proprietary information and the City is not allowed to release those for public review. However, the City’s consulting economist has reviewed all the information and prepared their analysis that provides the conclusions of their review (Exhibit 6). In summary, the review finds: • The Base Case scenario (61 units, which includes the 35% density bonus) is not financially feasible. Based on the development costs, revenues and return metrics, the developer margin would be negative, meaning the development costs would exceed the revenues, and thus make the project not feasible to build. The review also concludes that with even with potential savings on construction costs through value engineering, the Base Case scenario is not feasible and as the return margin would still be negative. • The Proposed Project scenario (120 units, including a 59-unit bonus above the state density bonus) does yield a positive margin of return. However, that return is does not achieve a high enough margin to be financially feasible according to typical return metrics. The review does conclude that if construction costs are lowered by 15%, it would be within the range of development feasibility, consistent with other projects in high demand locations. The additional density requested in the Proposed Project scenario enhances financial feasibility by reducing development costs per housing unit. • Additionally, in response to the Commission’s suggestion during the study session to explore additional affordability, a third scenario was evaluated by the City’s economist, which has been called Alternative 1. This scenario evaluated a 120 -unit project, of which 18 units (20% of the 59- unit additional density bonus) are BMR units (10 very low-income household levels and 8 low- income household levels). The review concludes that, given the significant reduction in revenues from doubling the number of affordable housing units, the Alternative 1 scenario is also not financially feasible without a significant reduction in construction costs as the return margin would be negative. In addition to the density bonus request, there are other considerations when evaluating this project’s proposed density. • The zoning for this site not only allows for residential density of 1 unit/600 sq. ft, but also allows for non -residential (commercial) intensity of up to a 1.5 FAR (Floor Area Ratio). These are different metrics, where density is based on number of units, and does not factor size of units, while FAR is based on square footage. For this site, the 1.5 FAR would allow up to 41,051 sq. ft, which for this site would translate to approximately two entire floors worth of the particular building. In addition, although residential density is not regulated by square footage, the proposed project hosts 120 units in approximately 81,442 sq. ft of building area dedicated to residential use, which translates to an average of 678 sq. ft/unit. As an example, a building of the same size could be proposed as: o 45 units in 6 stories, with the average unit being 1,809 sq. ft/unit, o 61 units (State density bonus max) in the same 6 stories, with the average unit being 1,313 sq. ft/unit. Given the need for housing in San Rafael as well as throughout the State, staff would assert that a greater number of smaller units as proposed would be more beneficial to the community. This is REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 18 an opportunity site, close to transit, in the heart of downtown and is possibly the most appropriate location for higher density housing. It would also serve as a catalyst for other downtown housing projects • As noted above, other factors to consider for density include height, design, environmental resources (including historical), parking and traffic capacity: o For height discussion, see below. o The design was evaluated and reviewed by the DRB, and through the process, there have been changes to provide additional stepping of upper floors as well as horizontal articulation, to reduce perceived bulk and mass from all four building elevations. o The site has no historical or environmental resources, given it is fully graded and developed with non-descript, postmodern commercial buildings. o The traffic generation from the project was evaluated against the City’s level of service standards. A Transportation Impact Analysis report (Fehr & Peers Transportation Consultants, revision dated January 14, 2019) originally submitted for the project was revised to expand the study area and to modify the methodology used in the analysis. The results of the updated trip generation indicate that, based on traffic counts of existing land use trips, and with deductions applied for ‘walk, bike and transit’ trips due to the site’s proximity to the Downtown, the SMART station and the transit center, the project would result in 33 net new AM peak hour trips (7- 9am weekdays) and 26 PM net new peak hour trips (4-6pm weekdays). ▪ The Transportation Impact Analysis report indicates surrounding intersections and arterials would continue to operate (existing plus project volumes) acceptably per the City’s LOS (Level of Service) standards in the General Plan ▪ The results of the Transportation Impact Analysis report have been confirmed by the City’s Traffic Engineer. Staff finds the proposed density (120 units) would result in negligible traffic impacts which are off-set by the payment of traffic mitigation fees on the 59 new peak hour trips anticipated to result from the project. o In terms of parking, the project would provide excess parking than that required by the State for projects in close proximity to transit. The project is required to provide 82 spaces and would actually provide 121 total spaces (composed of 109 resident parking + 12 ADA, ride share, drop off and EV parking spaces) Staff recommends that the Proposed Project scenario, which includes the voluntary increase in affordability, is appropriate, given that; 1) the project does not utilize most of the non-residential FAR allowance for the site, 2) the smaller size of units, averaging 678 sq. ft./unit, and 3) the project location. Height/Scale The 2/3 MUE zoning allows a 54 ft height limit with a 12 ft height bonus (for a total of 66 ft height limit) for projects that provide the required amount of affordable housing. As designed, the project proposes a building at 73 ft tall, exceeding the height limit by 7 feet. The height is measured to the top of the roof deck and the other architectural features on the roof deck (railing, and elevator overruns, trellises) do not count toward the maximum building height. During Conceptual Design Review by the Board and Planning Commission, the project was designed to meet the 66 ft height limit. That design proposed to bury the garage level by 1 ft below the elevation of the sidewalks. Following Conceptual Review, technical comments from City Departments and further REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 19 investigation into the stacked parking lift, the project was increased in height by 7 feet, from 66 feet to 73 feet, based on the following modifications: • FEMA requirements require the garage level to be a +1 ft above the current grade. Therefore, a +2 ft increase of height resulted by placing the ground level at +1 ft above current elevation • Further investigation into the stacker systems resulted in the need for 3.5 ft of additional height in the garage level for the proposed stacker system, raising the garage plate height from 18.5 ft to 22 ft in height. • Plate heights for the residential levels were increased from 9 ft to 9.5 ft, resulting in a 2.5 ft net change to overall height. Given that the proposed height exceeds the 66 ft height limit, the applicant ha s requested a major concession under the state density bonus law to request 7 additional feet. Concessions not identified 14.16.030.H.3.a are considered a major concession and require submittal of a financial pro forma SRMC 14.16.030.H.3.b.v),. If approved, the concession counts concession under the State Density Bonus law. Per SRMC 14.16.030. A major concession requires the submittal of a financial pro forma to demonstrate whether the concession or incentive is necessary to achieve the offered affordability and make the project financially feasible (Government Code, § 65915(k)(3). As noted above, the City hired S eifel Consulting to review the financial pro forma and confirm the methodologies, assumptions and conclusions (Exhibit 6). In conclusion, the 3 rd party economist has concluded that the pro forma does use sound assumptions, methodologies and financial information, and that the pro forma demonstrate s that 62 Base Case project would not be financially feasible, while the 120-unit Proposed Project is needed to make the project financially feasible. Staff does note that there are two variables to the height needs of this project, amount of parking provided and residential floor plate heights. • As previously noted, the project is required to provide 82 on-site parking spaces based on State Density Bonus law that requires 0.5 spaces/bedroom. The project proposes to provide 33 more parking spaces than required (121 provided vs 85-86 required) as an amenity and need for the residential units. The amount of proposed parking would generally equal 1 space per unit. The extra parking necessitates the need to either create two floors of parking or utilize a stacked parking system. Although it is conceivable possible to dig down and provide one floor of parking underground, the small size of the lot, FEMA requirements coupled with the high-water table would make this option nearly impossible. The other option is to only provide one level of parking without stackers, which would only require a 10 ft floor plate (rather than 22 ft) on the ground level. However, this option would not only render the project inconsistent with the parking requirements (only 66 spaces could be provided without use of parking stackers, where 82 are required), but also insufficient to meet the real-life parking demands of potential tenants in this project. • The second variable is that of the plate height in the residential units. The project proposes to use 9.5 ft plate heights. This plate height is typical of other stacked housing projects and given the smaller size of units, would make the units feel a bit bigger than if a lower plate height was utilized. If the plate height was reduced back to 9 ft, that would reduce overall building height by 3.5 feet, or 69.5 feet total. Although this would be a reduction in height, it would still exceed the height limit (66 ft with height bonus) and would be negligible in the bigger picture. Furthermore, the extra 0.5 feet of plate height would make the units for desirable and comfortable for residents, especially given their smaller size. REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 20 Front Setback The project requests a waiver of the required 5’ landscaped front setback (Third St. frontage) also as a concession under the State Density Bonus law for meeting their required 20% affordable housing requirement. This concession requesting a waiver of the required 5’ landscaped front setback, like the additional 75-unit density bonus above the maximum allowed under the State Density Bonus law, is discretionary, allows staff to hire a consulting economist for peer review (at the applicant’s cost) and requires City Council review and approval. At the time of formal project submittal, the applicant provided a financial pro forma demonstrating that the waiver of the required 5’ landscaped front setback results in “identifiable, financially sufficient and actual cost reductions” (underline added) to the project. Aside from the state density bonus law provisions for the city to grant a concession to a standard if deemed financially necessary, staff has also reviewed whether the proposed 0 ft setback would be in keeping with the surrounding area. Most of the buildings along 3rd St exhibit a 0-ft setback. A few properties have portions of their sites that include parking lots, which creates a bigger setback for that portion of the site. However, the predominant pattern of building placement is without any setback and this project would be consistent with that pattern. In addition, given the minimum dimensions requires for parking and drive aisles, coupled with the required “back of house” features needed on the ground floor for a project of this type (lobby, retail space, bike lockers, mail, trash, there is not much room to reduce the width of the building on the ground floor. Lastly, as noted above, the applicant has submitted a financial pro forma and this was reviewed by an independent economist and the conclusion is the number of units are necessary to make the project financially feasible. In regard to the setback, the issue is that there is a minimum width required for a double loaded garage. In addition, complying with the required front setback is challenging due to the parking, double-width driveway and mechanical/utility/refuse infrastructure that are also provided on the ground floor; however, the project sponsor has indicated their intent to monitor future demand for increased ground-floor commercial space within the project and a potential interest to convert or reconfigure the ‘Lobby’ area into additional retail use, which would have the effect of activating the pedestrian presence at the southeast corner of Third St/.Lincoln Ave. Bulk/Mass The currently design project has greatly improved in terms of its impacts to bulk/mass. The prior design included projections over the public right of way, as well as a more vertical building design. The currently proposed design has eliminated all projections over the public right of way, inset balconies and stepback portions of the upper-stories to create horizonal relief, and fully recessed the 6th floor back five feet (5’). In addition, the project uses some varying roof heights on the top level to provide vertical articulation. Stacker Parking System: Stacked parking systems are a new concept to the City of San Rafael but are much more common in other parts of the Bay Area. With the limited availability of land, and high land costs, efficient use of parking should be encouraged. Given that our Zoning Ordinance does not yet acknowledge stacked parking, the applicant has requested a Use Permit for a modification to the parking standards. The type of parking lifts proposed for this site are a puzzle lift system with three-levels of semi-automatic horizontal and vertical shifting platforms. A driver is required to manually engage the system which automatically moves the parking platforms to an available empty space. Access may be secured by adding sliding metal wire doors which are opened by the driver only after the shifting process is completed. Staff is very supportive of stacked parking system DESIGN REVIEW BOARD RECOMMENDATION The Board has reviewed this project on two occasions. REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 21 June 20, 2017 - The Board reviewed the originally submitted design of the project as a Conceptual Design Review application and provided the following general comments. (Commissioner Schaefer served as PC liason): • Site requires a heightened ‘gateway’ design. The concept design is too boxy and should incorporate greater vertical and horizontal articulation. • Massing of concept design is looming due to crowding of sidewalk right-of-way with upper-story encroachments. Limit ROW encroachments to architectural features only and reduce to maintain pedestrian-friendly cross-streets (Tamalpais and Lincoln Avenues). • Portions of the upper stories should step back. • Ext. color palette is too bright. • Ground floor commercial space along Tamalpais Ave. is important link to pedestrian-friendly vision. • Provide comprehensive and generous amenities in common areas, including trellis over portions of the courtyard. Consider adding a gym and enlarging the rooftop common area. • Consider cladding staircase towers in glass or a similar design feature. • Guest parking, EV charging stations and a loading/unloading area should be provided in the garage. • Limit the driveway curb cuts on pedestrian-friendly cross-streets by providing a single drive-thru driveway and better garage circulation; and • Board is supportive of mechanical parking lifts though additional details are needed, including dimensions, queuing, turning access, cross-sections, real-time video of use. May 7, 2019 - The Board reviewed the formal project for site and building design and unanimously (4 -0-2 vote; PC Liaison Davidson) recommended approval of the site and building design with enhanced “Gateway Corner” (Third St. and Tamalpais Ave.) façade treatments (unique materials and colors). Video from each Board meeting may be viewed at www.cityofsanrafael.org/meetings and then clicking on archived “Design Review Board” meetings, and selecting video from the meeting date (June 20, 2017 and/or May 7, 2019). ENVIRONMENTAL DETERMINATION Per CEQA Guidelines Section 15060, staff conducted a “preliminary review” of the project application, plans and supportive studies and reports. In completing this preliminary review, staff determined that the application is defined as a “project” under CEQA. Next, CEQA Guidelines Section 15061 (Review for Exemption) was reviewed to determine whether the project is exempt from CEQA. A project is exempt from CEQA if it qualifies for a Categorical Exemption under Article 19, Section 15300. Given the project location, scope and use, staff has determined that the project qualifies for an exemption under CEQA Guidelines Section 15332. Section 15332 exempts “infill development projects” that meet the following conditions: a. The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designations and regulations. b. The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses. c. The project site has no value as habitat for endangered, rare or threatened species. d. Approval of the project would not result in any significant effects related to traffic, noise, air quality, or water quality. REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 22 e. The site can be adequately served by all required utilities and public services. Lastly, CEQA Guideline Section 15300.2 set forth a list of “exceptions” to the application of a Categorical Exemption. There are five exceptions that if any apply, would negate application of the proposed Categorical Exemption. A review of these exceptions reveals that none apply: 1. Location: The project site is already developed with commercial and parking uses and in not located in a sensitive environment. The site does not contain sensitive habitat. It is not located in an area of critical or hazardous concern where designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local agencies. 2. Cumulative Impact: Based on the lack of significant proposed nearby developments, there is no evidence of a potential significant cumulative impact on the environment from the proposed project. It has been determined that the project will not cumulatively impact traffic, noise, air quality, or water quality. 3. Significant Effect and Unusual Circumstances: The project would not result in any significant effects on the environment due to unusual circumstances. Based on completed environmental studies for the project, the project site does not have any unusual circumstances that would negatively impact the environment. 4. Scenic Highways: The project site is not in proximity or visible to any designated scenic highway based on the State of California’s Scenic Highway program. 5. Hazardous Waste Sites: Based on Phase 1 Environmental Site Assessment prepared for the project (see Section C, item 3), the site is not located on a list of identified hazardous waste sites designated by the State of California. 6. Historical resources: There are no historical resources located on the proposed project site. Therefore, staff recommends that the project would qualify for a categorical exemption and staff has drafted a Notice of Exemption (NOE) (see Exhibit 7) which provides greater detail on how the project qualifies for a Class 32 CEQA exemption. All the supporting studies used to evaluate the project are provided at https://www.cityofsanrafael.org/703-3/. NEIGHBORHOOD MEETING / CORRESPONDENCE A neighborhood meeting is not required; however, the applicant has previously met with the Gerstle Park Neighborhood Association, the Montecito Homeowners Association and the Federation of San Rafael Neighborhoods to discuss and solicit input on the proposed project Notice of Conceptual Review, by both the Board and the Planning Commission, the study session by the Planning Commission, and formal project review by the DRB and this Planning Commission hearing was conducted in accordance with noticing requirements contained in Chapter 29 of the Zoning Ordinance. A Notice of Public Meeting was mailed to all property owners, residents, businesses and occupants within a 300-foot radius of the project site and the appropriate neighborhood groups (the Downtown Business Improvement District, Gerstle Park Neighborhood Assn. and the Federation of San Rafael Neighborhoods), a minimum of 15 calendar days prior to the date of this hearing. Additionally, notice was posted on the project site, along the Third St., Tamalpais Ave. and Lincoln Ave. frontages. REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 23 Notice of this Planning Commission meeting was also provided through mailed notices to property owner/residents/business within 300 feet of the site, as well as applicable neighborhood/business associations and posted along all three frontages on the site. Public comments received by staff on the project are evenly mixed; some in support of the project proposing downtown housing and others in opposition to the project design, bulk/mass, height, and perceived parking and traffic impacts. Public comments received through the conceptual review, during the previous proposed design, are attached as Exhibit 8. Public comments received on the project, since formal project review, with a revised improved design, are attached as Exhibit 9. Any comments received after distribution of the staff report, will be forwarded to the Commission under separate cover. Planning staff has also created a digital webpage on the project which has been uploaded with links to both the current plans and supportive studies and is updated to coordinate with all meeting and hearing notices for the project. This project webpage may be found at https://www.cityofsanrafael.org/703-3/. CONCLUSION The project has been revised and refined since the original Conceptual Design Review in 2017 and appears to have addressed many of the main concerns. Through these revisions, the building no longer projects over the right of way, a commercial space has been added to the ground floor, the building design has improved to reflect the gateway location, and the number of units has been reduced to 120 units. However, through the revisions, the building height has increased from 66 ft to 73 feet to address some technical requirements (flood zone, mechanical puzzle stackers). Through the process, the project has increased affordability to off-set the proposed additional density, which has been provided; the project has increased the number of BMR units, from 9 to 12 BMR units by voluntarily proposing 3 additional BMR units at the moderate-income level for a fixed 10-year term, which exceeds the required affordability for the project (5 BMR units at the very low-income level and 4 BMR units at the low-income level). The project request three concessions under the state density bonus provisions (density, height and front setback). A financial pro forma has been submitted and reviewed by an independent economic who concluded that the assumptions and methodologies are sound and that the concessions are necessary to make the project financially feasible. In evaluating the project at this site, staff finds that this site is one of the most appropriate locations in the entire City to add a significant amount of housing , especially smaller sized units. The proximity to transit, downtown and transportation make this an ideal location for new housing. The size of the project has been demonstrated to be necessary to make it economically viable, given the high land and construction costs. In addition, smaller rental units are a housing type that are needed in the community. Furthermore, the site is listed as a housing opportunity site in the General Plan and envisioned for greater height and density through the Station Area Plan. The Planning Commission is requested to review and make recommendations on the project prior to the City Council taking final action. EXHIBITS 1. Vicinity/Location map 2. Draft Resolution recommending approval of the project to the City Council REPORT TO PLANNING COMMISSION - Case Nos: UP18-008/ED18-018/LLA18-001 703-723 Third St/898 Lincoln Ave August 27, 2019 Page 24 3. GP Consistency Table 4. ZO Consistency Table 5. Summary of “Good Design Principals” for Downtown 6. Pro Forma Review and Financial Feasibility Analysis, Seifel Consulting, Inc., February 19, 2019 7. Draft Notice of Exemption, January 21, 2019 8. Public comments through DRB Formal Project Review 9. Public comments since DRB Formal Project Review Reduced (11” x 17”) color plan sets have been provided to the Planning Commissioners only. Digital copy of the project plans can be viewed at https://www.cityofsanrafael.org/703-3/. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 1 RESOLUTION NO. 19- RESOLUTION OF THE SAN RAFAEL PLANNING COMMISSION RECOMMENDING TO THE CITY COUNCIL APPROVAL OF A USE PERMIT (UP18-008), ENVIRONMENTAL AND DESIGN REVIEW PERMIT (ED18-018) AND LOT LINE CONSOLIDATION (LLA18-001) TO ALLOW THE CONSTRUCTION OF 120-RESIDENTIAL ‘RENTAL’ UNIT, 73’-TALL, NEW MIXED-USE BUILDING WITH 121 MECHANICAL GARAGE PARKING LIFT AND 969 SQ. FT. OF GROUND-FLOOR COMMERCIAL SPACE WITH HEIGHT AND DENSITY BONUSES AND A FRONT SETBACK WAIVER, LOCATED ON TWO ADJACENT DOWNTOWN PARCELS AT 703-723 THIIRD ST. AND 898 LINCOLN AVE. (APNS: 011-278-01 & -02) WHEREAS, on March 2, 2017, Planning staff completed Pre-application review (PA16- 007) of a proposal to construct a new, 74.5’-tall, residential building with 138 residential units above 152 garage parking spaces, and requesting height and density bonuses and a front setback waiver (Based on limits prescribed by the City’s General Plan and the Zoning Ordinance, the maximum density for the project site is 45 residential units without a State density bonus and the maximum height is 66’); and WHEREAS, on June 20, 2017, the Design Review Board (Board) provided Conceptual Design Review comments on the project, which reduced the height of the building, from 74.5’ to 66’, and the on-site parking, from 152 to 143 mechanical parking lifts, though continued the density of 138 residential ‘rental’ units with density and height bonuses and a front setback waiver. The Board’s comments included the need for a higher-quality ‘Gateway’ design that eliminates upper-story projections over the sidewalk and incorporates upper-story ‘stepbacks’ and ground-floor commercial space, particularly along the Tamalpais Avenue frontage; and WHEREAS, on July 25, 2017, the Planning Commission (Planning Commission) also provided Conceptual Design Review comments on the project that were similar to the Board’s comments, but also recommended the minimizing driveways/driveway widths along the Tamalpais Avenue frontage and providing high-quality design on all building elevations, including the rear elevation adjacent to the Marin Color Service site at 770 2nd St.; and WHEREAS, on March 22, 2018, formal project applications were submitted to the Community Development Department, Planning Division, requesting a Use Permit (UP18-008), an Environmental and Design Review Permit (ED18-018) and a Lot Line Consolidation (LLA18- 001) for the current project, which reduced the density, from 138 to 120 residential ‘rental’ units, and the on-site parking, from 143 to 121 mostly mechanical parking lifts, while increasing the height of the building, from 66’ to 73’ and providing a 969 sq. ft. ground-floor commercial space. The formal project continued to request density and height bonuses and a front setback waiver; and WHEREAS, on February 26, 2019, the Planning Commission held a study session to provide preliminary comments, at the request of staff, on miscellaneous policy areas, including the requested density bonus, height bonus and front setback waiver, and the proposed mechanical parking lifts and the draft environmental (CEQA) findings. The Planning Commission indicated their support for the current project, including staff’s preliminary determination that the project is exempt from CEQA (California Environmental Quality Act), pursuant to CEQA Guidelines Section 15332 (In-Fill Development Projects). However, the Commission suggested that the project should explore providing greater affordability given the Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 2 amount of density bonus and improving the Tamalpais/Third St elevation for better gateway design; and WHEREAS, the project has voluntarily increased the proposed affordability, from nine (9) Below-Market-Rate (BMR) units (5 units at very low-income household levels and 4 units at low-income household levels) to 12 BMR units (5 units at very low-income household levels and 4 units at low-income household levels plus 3 units at the moderate-income household levels); and WHEREAS, on May 7, 2019, the Board reviewed the formal project for site and building design and unanimously (4-0-2 vote with Board Member Kent and Paul absent; with PC Liaison Davidson) recommended approval of the site and building design with enhanced “Gateway Corner” (Third St. and Tamalpais Ave.) façade treatments (unique materials and colors); and WHEREAS, on August 27, 2019, the San Rafael Planning Commission (Planning Commission) held a duly noticed a hearing to consider a Use Permit (UP18-008), an Environmental and Design Review Permit (ED18-018) and a Lot Line Consolidation (LLA18- 001) applications, accepted and considered all oral and written public testimony and the written report of Planning staff; and WHEREAS, the custodian of documents which constitute the record of proceedings upon which this decision is based is the Community Development Department; and NOW THEREFORE BE IT RESOLVED, the Planning Commission of the City of San Rafael does hereby make the following findings related to the applications for Use Permit (UP18-008), Environmental and Design Review Permit (ED18-018) and Lot Line Consolidtion (LLA18-001): Use Permit (UP18-008) Findings A. The proposed residential use within a commercial zoning district and the proposed use of mechanical parking lifts to provide on-site parking for the project, as revised and conditioned, will be in accord with the San Rafael General Plan 2020, the objectives of Title 14 of the San Rafael Municipal Code (the Zoning Ordinance) and the purposes of the 2/3 MUE District, in which the project site is located, given that; 1. As documented in the General Plan 2020 Consistency Table (Exhibit 3), the proposed project will implement and promote the goals and policies of the San Rafael General Plan 2020; 2. As documented in the Zoning Ordinance Consistency Table (Exhibit 4), the proposed project will be consistent with the objectives of the Zoning Ordinance; and 3. The proposed project will be consistent with the purposes of the 2/3 MUE District, given that; a) The project will create multifamily residential use in the 2/3 MUE District, a commercial zoning district, as part of mixed-use development; b) The project will provide a wide variety of housing opportunities in mixed-use districts in terms of housing type (market-rate and affordable residential ‘rental’ units) and sizes (studio units 342 - 539 sq. ft. in size, 1-bedroom units 545 - 795 sq. ft. in size, and 2-bedroom units 899 - 1,068 sq. ft. in size, c) The project will help promote San Rafael's Downtown area as a viable commercial and financial Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 3 center, and as an urban center with a mixture of civic, social, entertainment, cultural and residential uses due to its unique location in the Downtown, across from the SMART Downtown station and in close proximity of the relocated Bettini Transit Center (whose exact location has not been determined at this time); future residents are anticipated to frequent existing and future businesses in the Downtown and help achieve the City’s goal of ‘alive-after-five’ by helping to activate the Downtown in the evenings and on weekends; and d) The project will help create an inviting appearance along Third St. frontage by installing new street trees and raised Corten steel landscape planters along all three building frontages (Third St., Lincoln Ave. and Tamalpais Ave.). B. The proposed residential use within a commercial zoning district and the proposed use of mechanical parking lifts to provide on-site parking for the project, as revised and conditioned, will not be detrimental to the public healrth, safety or welfare, or materially injurious to properties or improvements in the vicinity, or to the general welfare of the City, given that; the project has been reviewed by appropriate City departments, non- City agencies, the appropriate surrounding neighborhood groups (Downtown Business Improvement District, Federation of San Rafael Neighborhoods, Gerstle Park Neighborhood Assoc., Montecito Area Residents Assoc. Lincoln-San Rafael Hill Neighborhood Assoc.and Bret Harte Community Assoc.), interested parties, the Design Review Board at two (2) separate meetings (conceptual review on June 20, 2017 and formal project review on May 7, 2019) and the Planning Commission on two (2) separate occasions (conceptual review on July 25, 2017 and study session on February 26, 2019) and conditions of approval have been included to mitigate any potential negative impacts anticipated to be generated by the proposed project; In addition, the proposed mechanical parking lift system has been used in other residential development projects, in similar settings and has proven to be effective and safe mechanism to provide stacked parking. Lastly, appropriate measures have been included in the project, as a condition of approval, to establish backup methods should the mechanical parking lift fail in a power outage; and C. The proposed residential use within a commercial zoning district and the proposed use of mechanical parking lifts to provide on-site parking for the project, as revised and conditioned, will comply with each of the applicable provisions of the Zoning Ordinance, given that; as documented in the Zoning Ordinance Consistency Table (Exhibit 4). Environmental and Design Review Permit (ED18-018) Findings A. The project design, as revised and conditioned, will be in accordance with the San Rafael General Plan 2020, the objectives of Title 14 of the San Rafael Municipal Code (the Zoning Ordinance) and the purposes of Chapter 25 of the Zoning Ordinance (Environmental and Design Review Permits), given that; 1. As documented in the General Plan 2020 Consistency Table (Exhibit 3), the proposed project will implement and promote the goals and policies of the San Rafael General Plan 2020; 2. As documented in the Zoning Ordinance Consistency Table (Exhibit 4), the proposed project will be consistent with the objectives of the Zoning Ordinance; and Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 4 3. The proposed project will be consistent with the purposes of Environmental and Design Review Permits, given that; the project will maintain and improve the quality of, and relationship between, development and the surrounding area to contribute to the attractiveness of the City. The revised project design proposes a contemporary design, similar to the nearby BioMarin campus buildings, though with unique façade treatments (brick with Corten steel planters at the ground level and a mixture of stucco and vertical and horizontal fiber cement board siding at the upper levels), greater articulation, stepping back the upper stories and a more ‘residential’ window proportion. The proposed 6-story scale was reviewed and supported by both the Board and the Planning Commission during conceptual design review, the Commission again during study session review and the Board again during formal project review and supported. The project design has been revised to provide equal, high-quality design attention to all four building elevations, including the rear elevation which is shared with 770 Second St. Better vertical and horizontal articulation and stepbacks of upper stories have been incorporated into the revised project design. In addition, previously proposed upper-story projections or encroachments over the sidewalk have been eliminated. Extensive landscaping in the form of street trees and Corten steel raise planter along all three street fronts is proposed to help create a pedestrian scale. The project proposes to orient pedestrian activity through the lobby area both through the main entry on Third St and at the northwest corner of Third St./Lincoln Ave. Photo simulations were conducted on the project and submitted by the applicant, which indicated minor view impacts from public vantage points. B. The project design, as revised and conditioned, is consistent with all applicable site, architecture and landscaping design criteria and guidelines for the Second/Third St. Mixed-Use East (2/3 MUE) District in which the project site is located, given that; 1. The project design will be consistent with the maximum allowable density for the site, which is 45 units based on 27,367 sq. ft. of total lot area, subject to requests for automatic and discretionary density bonuses under the State Density Bonus law after meeting mandatory affordable housing requirements; 2. The project will be consistent with the maximum height allowed (Uniform Building Code 1997) for the project site, which is 54’, subject to requests for automatic and discretionary height bonuses under the State Density Bonus law after meeting mandatory affordable housing requirements; 3. The project will be consistent with the minimum required yard setbacks, which is limited to a 5’ front (Third St. frontage) setback, subject to a request for setba ck waiver under the State Density Bonus law after meeting mandatory affordable housing requirements; 4. The project will be consistent with the minimum landscaping requirement for the project site, which is 10% or 2,737 sq. ft. (The project proposes 12,555 sq . ft. of site landscaping); 5. The project will be consistent with the maximum FAR (floor area ratio) allowed on the project site by proposing 969 sq. ft. of ground-level commercial space located at the northeast corner of the project site, at the corner of Third St and Tamalpais Ave. This represents 0.035 FAR where a maximum 1.5 FAR or 41,050.5 sq. ft. of nonresidential develop is allowed on the project site in addition to the residential density; 6. The project will voluntarily provide 12,408 sq. ft. of private and common outdoor recreational area or an average of 103.4 sq. ft. of outdoor recreational area per unit; Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 5 7. The provisions of Marin Municipal Water District’s (MMWD) most recent water conservation and new ‘graywater’ requirements apply to the project, where MMWD approval is required prior to the issuance of any building or grading permit; 8. The proposed project will be consistent with review criteria for Environmental and Design Review Permits (Chapter 14.25 of the Zoning Ordinance), by proposing a consistent, high-quality architectural design (colors and materials; scale; bulk and mass; fenestration and articulation) throughout the project site; and 9. The formal project design was reviewed and recommended for approval by the Design Review Board (Board) on May 7, 2019. C. The project design, as revised and conditioned, minimizes adverse environmental impacts, given that; 1. The project site is completely developed and disturbed neither contains, nor is immediately contiguous to, recognizable wetlands, creeks or similarly sensitive environmental features, and it has not been identified in the San Rafael General Plan 2020 (Exhibit 38 – Threatened and Endangered Species) as a general location were threatened and endangered species have been previously observed or maintain a suitable habitat for their likely presence to be found; and 2. The project design minimizes adverse environmental impacts, given that: a California Environmental Quality Act (CEQA) review and clearance was prepared, based on supporting studies submitted with the project, substantiating a Categorical Exemption (Class 32; In-Fill Development Projects), as determined by a draft Notice of Exemption (NOE), dated January 21, 2019 (Exhibit 7). D. The project design, as revised and conditioned, will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity, or to the general welfare of the City, given that; the project has been reviewed by appropriate City departments, non-City agencies, the appropriate surrounding neighborhood groups (Downtown Business Improvement District, Federation of San Rafael Neighborhoods, Gerstle Park Neighborhood Assoc., Montecito Area Residents Assoc. Lincoln-San Rafael Hill Neighborhood Assoc. and Bret Harte Community Assoc.), interested parties, the Design Review Board at two (2) separate meetings (conceptual review on June 20, 2017 and formal project review on May 7, 2019) and the Planning Commission on two (2) separate occasions (conceptual review on July 25, 2017 and study session on February 26, 2019) and conditions of approval have been included to mitigate any potential negative impacts anticipated to be generated by the proposed project. Lot Line Consolidation Findings A. The proposed lot line consolidation is consistent with the San Rafael General Plan 2020 and any pertinent specific plan or neighborhood plan; given that: the use of the project site would be mixed-use (both residential and non-residential uses) in compliance with the Second/Third Street Mixed-Use (2/3MU) General Plan Land Use designation, and would not result in the creation of any new lots but, rather, would reduce the two (2) existing legal Downtown parcels into one (1). B. The proposed lot line consolidation is in conformance with the Zoning Ordinance (Title 14) and any other pertinent municipal code provisions, given that; the consolidated Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 6 parcel would be in conformance with the development standards for the Second/Third Mixed Use East (2/3 MUE) District, including minimum lot area, lot width and landscaping and maximum floor area ratio (FAR), with the exception of height, density and front setback, and the applicant has requested concessions to these standards under the State Density Bonus law. The proposed Lot Line Consolidation would not result in any change to the existing zoning classification or approve a change in use or additional construction which would conflict with these zoning classifications and development standards. C. The proposed lot line consolidation is in conformance with the Uniform Building Code (UBC), given that; the project application submittal has been reviewed by the Community Development Department, Building Division, and determined to be in conformance with the applicable California Building Code (CBC) or UBC regulations. Density Bonus /Concessions/Waivers Findings A. The project complies with the City’s affordable housing requirement, pursuant to SRMC Section 14.16.030, by providing 20% (9 units) of the maximum base density (45 units) as “affordable” or Below-Market-Rate (BMR) units, with five (5) BMR units affordable to very low-income households and four (4) affordable to low-income households. B. By meeting the City’s affordable housing requirement, the project is automatically eligible for a State Density Bonus of up to 35% (16 additional market-rate units) and up to three (3) concessions. C. By also meeting the City’s affordable housing requirement, the project is automatically eligible for a twelve-foot (12’) height bonus under both the General Plan and SRMC Section 14.16.190, from 54’ to 66’. D. The project proposes three (3) discretionary concessions/waivers: 1) An additional 59- unit discretionary density bonus above the 35% density bonus provided by the State Density Bonus law; 2) An additional seven-foot (7’) height bonus above the height bonus allowed by the General Plan and Zoning Ordinance; and 3) A waiver from the required five-foot (5’) landscaped front setback. E. All three of the proposed concessions/waivers requested by the applicant, are considered major concessions (SRMC 14.16.030.H.3.b.v) and therefore are subject to approval of the City Council and require that the applicant demonstrate through a financial pro forma that the concessions are needed to make the project financially feasible. As part of the formal submittal, a financial pro forma was submitted by the developer F. The pro forma evaluates the Base Case Project (61 units, which includes the 35% density bonus) as well as the Proposed Project (120 units). The actual pro forma and specific numbers contained in the pro forma are proprietary information and the City is not allowed to release those for public review. However, the City’s consulting economist has reviewed all the information and prepared their analysis that provides the conclusions of their review (Exhibit 6 of staff report). In summary, the review finds: a. The Base Case scenario (61 units, which includes the 35% density bonus) is not financially feasible. Based on the development costs, revenues and return Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 7 metrics, the developer margin would be negative, meaning the development costs would exceed the revenues, and thus make the project not feasible to build. The review also concludes that with even with potential savings on construction costs through value engineering, the Base Case scenario is not feasible and as the return margin would still be negative. b. The Proposed Project scenario (120 units, including a 59-unit bonus above the state density bonus) does yield a positive margin of return. However, that return is does not achieve a high enough margin to be financially feasible according to typical return metrics. The review does conclude that if construction costs are lowered by 15%, it would be within the range of development feasibility, consistent with other projects in high demand locations. The additional density requested in the Proposed Project scenario enhances financial feasibility by reducing development costs per housing unit. c. Additionally, in response to the Planning Commission’s suggestion during the study session to explore additional affordability, a third scenario was evaluated by the City’s economist, which has been called Alternative 1. This scenario evaluated a 120-unit project, of which 18 units (20% of the 59-unit additional density bonus) are BMR units (10 very low-income household levels and 8 low- income household levels). The review concludes that, given the significant reduction in revenues from doubling the number of affordable housing units, Alternative 1 is also not financially feasible without a significant reduction in construction costs as the return margin would be negative. G. In addition to the density bonus request, there are other considerations when evaluating this project’s proposed density. a. The zoning for this site not only allows for residential density of 1 unit/600 sq. ft, but also allows for non -residential (commercial) intensity of up to a 1.5 FAR (Floor Area Ratio). These are different metrics, where density is based on number of units, and does not factor size of units, while FAR is based on square footage. For this site, the 1.5 FAR would allow up to 41,051 sq. ft, which for this site would translate to approximately two entire floors of this particular building. b. Although residential density is not regulated by square footage, the proposed project hosts 120 units in approximately 81,442 sq. ft of building area dedicated to residential use, which translates to an average of 678 sq. ft/unit. As an example, a building of the same size could be proposed as: • 45 units in 6 stories, with the average unit being 1,809 sq. ft/unit, • 61 units (State density bonus max) in the same 6 stories, with the average unit being 1,313 sq. ft/unit. Given the need for housing in San Rafael as well as throughout the State, the Commission finds that a greater number of smaller units (120 units) as proposed would be more beneficial to the community. This is an opportunity site, close to transit, in the heart of downtown and is possibly the most appropriate location for higher density housing. It would also serve as a catalyst for other downtown housing projects Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 8 H. Other factors to consider for density include height, design, environmental resources (including historical), parking and traffic capacity: a. For height the project is impacted by FEMA requirements that require a +2 ft increase of height. b. The stacker parking system requires a 22 ft first floor plate height. c. Stepping of the building as well as provision of horizontal articulation have resulted in additional height to address design related comments by the DRB as means to reduce perceived bulk and mass from all four building elevations. d. The site has no historical or environmental resources, given it is fully graded and developed with non-descript, postmodern commercial buildings. e. The traffic generation from the project was evaluated against the City’s level of service standards. A Transportation Impact Analysis report (Fehr & Peers Transportation Consultants, revision dated January 14, 2019) originally submitted for the project was revised to expand the study area and to modify the methodology used in the analysis. The results of the updated trip generation indicate that, based on traffic counts of existing land use trips, and with deductions applied for ‘walk, bike and transit’ trips due to the site’s proximity to the Downtown, the SMART station and the transit center, the project would result in 33 net new AM peak hour trips (7- 9am weekdays) and 26 PM net new peak hour trips (4-6pm weekdays). ▪ The Transportation Impact Analysis report indicates surrounding intersections and arterials would continue to operate (existing plus project volumes) acceptably per the City’s LOS (Level of Service) standards in the General Plan ▪ The results of the Transportation Impact Analysis report have been confirmed by the City’s Traffic Engineer. Staff finds the proposed density (120 units) would result in negligible traffic impacts which are off-set by the payment of traffic mitigation fees on the 59 new peak hour trips anticipated to result from the project. f. In terms of parking, the project would provide excess parking than that required by the State for projects in close proximity to transit. The project is required to provide 82 spaces and would actually provide 121 total spaces (composed of 109 resident parking + 12 ADA, ride share, drop off and EV parking spaces) I. The city’s consulting 3rd party economist has determined that the proposed additional density bonus, height bonus and setback waiver all result in “identifiable, financially sufficient and actual cost reductions” (underline added) to the project (see Exhibit 6 of the staff report). Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 9 California Environmental Quality Act (CEQA) Findings Pursuant to CEQA (California Environmental Quality Act) Guidelines Section 15061, the proposed project is exempt from CEQA pursuant to CEQA Guidelines Section 15332 (In-Fill Development Projects). Based on supporting studies submitted with the project and as documented in the Notice of Exemption (Exhibit 6 to staff’s report), a Class 32 categorical exemption under the CEQA Guidelines applies to this in-fill development project by meeting specific criteria listed below: a) The project is consistent with all applicable General Plan and policies and Zoning Ordinance regulations as documented by the attached consistency tables (see Exhibits 3 and 4); b) The proposed development is located with the city limits on a project site no more than five (5) acres substantially surrounded by urban uses given that the project site is comprised of two adjacent Downtown parcels with 27,367 sq. ft. (0.63 acre) of total combined area. The project is located within the jurisdictional boundaries of the City of San Rafael and is surrounded by urban development; c) The project site has no value as habitat for endangered, are or threatened species given that a Biological Assessment was completed on the project site which determined no critical habitat exist among the biological resources; d) Approval of the project would not result in any significant impacts to traffic, noise, air quality or water quality given that appropriate studies were conducted, submitted and reviewed by the appropriate city departments. The results are that no significant impacts would result from the project which cannot be mitigated with standard conditions of approvals e) The project site can be adequately served by all required utilities and public services given that the site is currently served, and will continue to be served, by City services and non-city agency service providers and the applicable service providers have indicated, through design or conditions, support for the project. BE IT FURTHER RESOLVED, that the Planning Commission of the City of San Rafael does hereby approve the Use Permit (UP18-008), Environmental and Design Review Permit (ED18-018), and Lot Line Consolidation (LLA18-001), including the density bonus and waivers/concessions, based on the findings of fact above and, subject to the following conditions of approval: Use Permit (UP18-008) Conditions of Approval General and On-Going Community Development Department, Planning Division 1. This Use Permit approves development of 120 residential ‘rental’ units or apartments above 969 sq. ft. of ground-floor commercial space and 121 mechanical garage parking lifts, which shall comply at all times with the adopted performance standards for residential uses in commercial districts (currently Section 14.17.100 of the San Rafael Municipal Code or SRMC). Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 10 2. This Use Permit approves a Parking Modification to allow 109 of the 121 spaces to be provided by mechanical jig saw lifts for the residents. The remaining 12 parking spaces are to be provided as at-grade, non-mechanical lift parking spaces for electric vehicle (EV), visitor, ADA and car share parking. 3. This Use Permit does not allow the subsequent conversion of the approved residential ‘rental’ units or apartments without a separate Tentative Map application submittal to the Community Development Department, Planning Division, in compliance with Subdivision Ordinance (currently Sections 15.02.02 - .04 of the SRMC), and review and approval by the Planning Commission. It is strongly recommended that Tentative Map approval be obtained prior to Building Permit issuance for the project. A Tentative Map application shall also require submittal to amend this Use Permit and the Environmental and Design Review Permit (ED18-018) for the project 4. This Use Permit requires the project to include a secondary or backup power source to operate the mechanical parking lift system in case of power outage. 5. This Use Permit requires the project reserve a minimum of 82 mechanical parking spaces, for exclusive use by the residents, which is the reduced parking requirement under the State Density Bonus law. 6. This Use Permit requires the project reserve a minimum of three (3) on-site parking spaces for the exclusive use by customers of the ground-floor commercial space, which is the reduced parking requirement under the City’s parking code. 7. This Use Permit requires the project provide a minimum of four (4) short-term bicycle parking spaces, in compliance with the adopted design standards (SRMC Section 14.18.090 (E), and accessible at all times. 8. This Use Permit shall require residents acknowledge, as part of their lease agreement, the mixed-use nature of the Downtown and the understanding that living across the street from the Downtown SMART Station may result in potentially increased noise. 9. This Use Permit shall run with the land and shall remain valid regardless of any change- of ownership of the project site, subject to these conditions. This Use Permit will fully vest once a building/grading permit is issued and ‘substantial construction’ is commenced or a time extension request is submitted to the City’s Community Development Department, Planning Division, within two (2) years of original approval, or Enter Council Date (‘Substantial construction’ is defined as the pouring of all required foundations and the installation of vertical components, such as exterior walls). Failure to obtain a grading/building permit and commence ‘substantial construction’ or submit a time extension request by the specified date will result in the expiration of this Use Permit. 10. This Use Permit shall run concurrently with the Environmental and Design Review Permit (ED18-018) approval. If the Environmental and Design Review Permit approval expires, this Use Permit approval shall also expire and become invalid. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 11 Environmental and Design Review Permit (ED18-018) Conditions of Approval General and On-Going Community Development Department, Planning Division 1. The building techniques, colors, materials, elevations and appearance of the project, as presented to the Planning Commission at their August 27, 2019 hearing, and on file with the Community Development Department, Planning Division, shall be the same as presented to the City Council and subject to these conditions. Minor modifications or revisions to the project shall be subject to review and approval of the Community Development Department, Planning Division. Further modifications deemed not minor by the Community Development Director shall require review and approval by the original decision-making body, the City Council, and may require review and recommendation by the City’s Planning Commission and Design Review Board. 2. The approved colors for the project are on file with the Community Development Department, Planning Division. Any future modification to the color palette shall be subject to review and approval by the Planning Division and those modifications not deemed minor shall be referred to the Design Review Board for review and recommendation prior to approval by the Planning Division. 3. This Environmental and Design Review Permit approves the demolition of two existing commercial buildings (a two-story commercial building at 703 Third St. and a one-story commercial building at 723 Third St./898 Lincoln Ave.) and the construction of a 120-unit, 73’-tall, ‘rental’ residential or apartment building with 121 mechanical garage parking lifts and 969 sq. ft. ground-floor commercial space. 4. All ‘off-haul’ of excavation and delivery/pick-up of construction equipment shall occur during off-peak weekday hours, between 9:00 a.m. and 4:00 p.m., Monday through Friday only. 5. Consistent with the standard noise ordinance requirements for construction (SRMC Chapter 8.13), all grading and construction activities shall be limited to 7 a.m. to 6 p.m., Monday through Friday, and 9 a.m. to 6 p.m., Saturdays. All grading and construction activities are strictly prohibited on Sundays and State- or federally-recognized holidays. 6. Final landscape and irrigation plans for the project shall comply with the provisions of Marin Municipal Water District’s (MMWD) most recent water conservation ordinance and graywater recycling system requirements. Construction plans submitted for issuance of building/grading permit shall be pre-approved by MMWD and stamped as approved by MMWD or include a letter from MMWD approving the final landscape and irrigation plans. Modifications to the final landscape and irrigation plans, as required by MMWD, shall be subject to review and approval of the Community Development Department, Planning Division. 7. All new landscaping shall be irrigated with an automatic drip system and maintained in a healthy and thriving condition, free of weeds and debris, at all times. Any dying or dead landscaping shall be replaced in a timely fashion. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 12 8. All site improvements, including but not limited to the site lighting, hardscape, and paving striping shall be maintained in good, undamaged condition at all times. Any damaged improvements shall be replaced in a timely manner. 9. The site shall be kept free of litter and garbage. Any trash, junk or damaged materials that are accumulated on the site shall be removed and disposed of in a timely manner. 10. All public streets and sidewalks and on-site streets which are privately owned that are impacted by the grading and construction operation for the project shall be kept clean and free of debris at all times. The general contractor shall sweep the nearest street and sidewalk adjacent to the site on a daily basis unless conditions require greater frequency of sweeping. 11. All submitted building permit plan sets shall include a plan sheet incorporating these conditions of approval. 12. If archaeological or cultural resources are accidentally discovered during excavation/grading activities, all work will stop within 100 feet of the resource and the qualified archaeologist will be notified immediately. The qualified archaeologist will contact Federated Indians of Graton Rancheria (FIGR) and the Planning Division and coordinate the appropriate evaluation of the find and implement any additional treatment or protection, if required. No work shall occur in the vicinity until approved by the qualified archaeologist, FIGR and Planning staff. Prehistoric resources that may be identified include, but shall not be limited to, concentrations of stone tools and manufacturing debris made of obsidian, basalt and other stone materials, milling equipment such as bedrock mortars, portable mortars and pestles and locally darkened soils (midden) that may contain dietary remains such as shell and bone, as well as human remains. Historic resources that may be identified include, but are not limited to, small cemeteries or burial plots, structural foundations, cabin pads, cans with soldered seams or tops, or bottles or fragments or clear and colored glass. 13. If human remains are encountered (or suspended) during any project-related activity, all work will halt within 100 feet of the project and the County Coroner will be contacted to evaluate the situation. If the County Coroner determines that the human remains are of Native American origin, the County Coroner shall notify FIGR within 24-hours of such identification who will work with Planning staff to determine the proper treatment of the remains. No work shall occur in the vicinity without approval from Planning staff. 14. Applicant agrees to defend, indemnify, release and hold harmless the City, its agents, officers, attorneys, employees, boards and commissions from any claim, action or proceeding brought against any of the foregoing individuals or entities ("indemnities"), the purpose of which is to attack, set aside, void or annul the approval of this application or the adoption of any environmental document which accompanies it. This indemnification shall include, but not be limited to, damages, costs, expenses, attorney fees or expert witness fees that may be asserted or incurred by any person or entity, including the applicant, third parties and the indemnities, arising out of or in connection with the approval of this application, whether or not there is concurrent, passive or active negligence on the part of the indemnities. 15. In the event that any claim, action or proceeding as described above is brought, the City shall promptly notify the applicant of any such claim, action or proceeding, and the City will cooperate fully in the defense of such claim, action, or proceeding. In the event the applicant is required to defend the City in connection with any said claim, action or Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 13 proceeding, the City shall retain the right to: 1) approve the counsel to so defend the City; 2) approve all significant decisions concerning the manner in which the defense is conducted; and 3) approve any and all settlements, which approval shall not be unreasonably withheld. Nothing herein shall prohibit the City from participating in the defense of any claim, action or proceeding, provided that if the City chooses to have counsel of its own to defend any claim, action or proceeding where applicant already has retained counsel to defend the City in such matters, the fees and the expenses of the counsel selected by the City shall be paid by the City. 16. As a condition of this application, applicant agrees to be responsible for the payment of all City Attorney expenses and costs, both for City staff attorneys and outside attorney consultants retained by the City, associated with the reviewing, processing and implementing of the land use approval and related conditions of such approval. City Attorney expenses shall be based on the rates established from time to time by the City Finance Director to cover staff attorney salaries, benefits, and overhead, plus the actual fees and expenses of any attorney consultants retained by the City. Applicant shall reimburse the City for City Attorney expenses and costs within thirty (30) days following billing of same by the City. 17. This Environmental and Design Review Permit shall run with the land and shall remain valid regardless of any change of ownership of the project site, subject to these conditions. This Environmental and Design Review Permit will fully vest once a building/grading permit is issued and ‘substantial construction’ is commenced or a time extension request is submitted to the City’s Community Development Department, Planning Division, within two (2) years of original approval, or Enter Council Date (‘Substantial construction’ is defined as the pouring of all required foundations and the installation of vertical components, such as exterior walls). Failure to obtain a grading/building permit and commence ‘substantial construction, or failure to obtain a time extension within the two-year period, will result in the expiration of this Environmental and Design Review Permit. 18. This Environmental and Design Review Permit shall run concurrently with the Use Permit (UP16-018) approval. If the Environmental and Design Review Permit expires, the Use Permit approval shall also expire and become invalid. Prior to Issuance of Demolition Permits Community Development Department, Planning Division 19. Prior to issuance of a demolition permit, the project sponsor shall submit verification that the requirements of the Bay Area Air Quality Management District (BAAQMD) have been met and necessary permits have been issued for demolition of the existing buildings. 20. Prior to the issuance of a demolition permit, the applicant shall submit written verification from a pest control consultant indicating that the project site has been serviced to eliminate rodents. 21. Prior to issuance, the conditions listed in condition of approval #107 shall be noted on the demolition plan. Community Development Department – Building Division 22. Any demolition of existing structures will require a permit. Submittal shall include three (3) copies of the site plan, asbestos certification and PG&E disconnect notices. Also, Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 14 application must be made to the Bay Area Air Quality Management District prior to obtaining the permit and beginning work. Public Works Department - Traffic Engineering Division 23. Prior to demolition permit, the applicant shall submit a detailed traffic control plan for review and approval of the traffic division. All traffic from any off -haul of demolition materials shall be conducted outside of the A.M. or P.M. peak hours (after 9:00 A.M and before 4:00 P.M.). 24. All construction staging shall occur on-site or another site with appropriate approvals from property owner. No staging shall occur on City right-of-way without review and approval of the Public Works Department. 25. A plan for the demolition shall be submitted for review and approval of the City Traffic Engineer. This plan shall indicate the haul/truck routes, size of trucks to be used for hauling off-haul and the frequency/times of any off-haul. Prior to Issuance of Grading/Building Permits Community Development Department, Planning Division 26. Due to the close proximity of the project site to San Rafael Creek, a qualified archaeologist shall conduct archival and field study to identify the presence of archaeological resources, including a good faith effort to identify archaeological deposits that may show no indications on the surface. Field study may include, but is not limited to, hand auger sampling, shovel test units, or geoarchaeological analysis, as well as other common methods used to identify the presence of buried archeological resources. A list of qualified archaeologists, who meet the Secretary of Interior’s Standards, may be found at http://www.chrisinfo.org. If archaeological resources are discovered, protocols dictated by Conditions #12 and #13 (ED18-018) shall be followed. 27. To reduce potential exterior noise impacts in common outdoor areas within the project to meet the City’s 65 dBA noise limit, the roof deck shall include a six-foot (6’)-high solid parapet wall. 28. To reduce measured traffic and predicted train noise levels in habitable residential rooms to meet the City’s interior noise limits, all exterior window and balcony door shall meet STC rating of STC 36 or higher. Corner units may require exterior windows and doors with higher ratings. Some exterior walls may require additional layers of gypsum board. a. Prior to building permit issuance, a follow-up acoustical study is required to be submitted to the Community Development Department, Planning Division, with final recommendations on window, balcony door, and exterior wall STC rating requirements. This acoustical study shall also review any alternate means of achieving outdoor air and confirm that any mechanical ventilation system will not compromise the noise reduction provided by the window, balcony door and wall assembly. 29. To reduce potential temporary construction and grading noise impacts on the project site to meet the City’s 90 dBA noise limit, the applicant shall demonstrate to the satisfaction of the Community Development Department, Planning Division, that the project complies with the following: Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 15 A. Construction contracts specify that all construction and grading equipment, fixed or mobile, shall be equipped with properly operating and maintained mufflers and other State-required noise attenuation devices. B. Property owners and occupants located within 250 feet of the project boundary shall be sent a notice, at least 15-days prior to commencement of construction or grading of each phase, regarding the construction or grading schedule of the project. A sign, legible at a distance of 50 feet (50’) shall also be posted at the project site. All notices and signs shall be reviewed and approved the Community Development Director (or designee), prior to mailing or posting and shall indicate the dates and duration of construction or grading activities, as well as provide a contact name and a telephone number where residents and business owners can inquire about the construction or grading process and register complaints. C. The General Contractor shall provide evidence that a construction staff member would be designated as a Noise Disturbance Coordinator and would be present on- site during construction or grading activities. The Noise Disturbance Coordinator shall be responsible for responding to any local complaints about construction or grading noise. When a complaint is received, the Noise Disturbance Coordinator shall notify the Community Development Department, Planning Division, within 24- hours of the compliant and determine the cause of the noise complaint (e.g., starting too early, bad muffler, etc.) and shall implement reasonable measures to resolve the complaint, as deemed acceptable by the Community Development Director (or designee). All notices that are sent to residential units and business owners immediately surrounding the project site and all signed posted at the project site shall include the contact name and telephone number for the Noise Disturbance Coordinator. D. The applicant shall demonstrate to the satisfaction of the Community Development Director (or designee) that construction and grading noise reduction methods shall be used where feasible. These reduction methods include shutting-off idling equipment, installing temporary acoustic barriers around stationary construction and grading noise sources, maximizing the distance between construction and grading staging areas and occupied residential and commercial areas, and electric air compressors and similar power tools. E. Construction and excavation/grading off-haul truck routes shall be designed to avoid noise sensitive uses (e.g., residences, assisted senior living facilities, hospitals, etc.) to the greatest extent feasible. F. During construction and grading, stationary equipment shall be placed such that emitted noise is directed away from sensitive noise receivers. 30. All communal refuse and recycling facilities shall be full-screened from public view. The applicant shall obtain and submit a letter from Marin Sanitary Service approving the location and sizing of these facilities with the building permit plans. 31. The project sponsor shall inform the contractor, general contractor or site supervisor of these requirements and shall be responsible for informing subcontractors of these requirements and for implementing these measures on the site. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 16 32. Any outstanding Planning Division application processing fees shall be paid prior to grading or building permit issuance. 33. All mechanical equipment (i.e., air conditioning units, meters and transformers) and appurtenances not entirely enclosed within the building shall be fully-screened from public view. The method used to accomplish the screening shall be indicated on the building plans and approved by the Planning Division. 34. An acoustical test report of all sound-rated windows and doors, by a qualified (licensed) acoustical consultant, shall be submitted to Planning, ensuring that the selected windows and doors would reduce the interior noise levels to normally acceptable level adopted by the City (i.e., 40 dBA in bedrooms and 45 dBA in all other rooms). 35. A Construction Management Plan (CMP) shall be prepared and submitted to the Community Development Department, Planning Division, for review and approval. The CMP shall include a. Projected schedule of work, b. Projected daily construction truck trips, c. Proposed construction truck route, location of material staging areas, d. Location of construction trailers, location of construction worker parking, e. Designated contact information for contractor and property owner to be posted on site in case of noise or other construction-related activities. f. Statement that the project shall conform to the City’s Noise Ordinance (Chapter 8.13 of the San Rafael Municipal Code), g. Statement that no construction truck traffic shall encroach into any of the surrounding residential neighborhood streets at any time, and h. Statement that the existing roadway conditions on Third St., Tamalpais Ave. and Lincoln Ave. shall be memorialized on digital recording format prior to the start of construction and that the project sponsor shall be required to repair any roadway damage created by the additional construction truck traffic. i. In the event that the CMP is conflicting with any conditions imposed by the grading permit for the project, the more restrictive language or conditions shall prevail. 36. The project shall mitigate potential air quality impacts associated with construction and grading activities by preparing and submitting a Dust Control Plan to the City of San Rafael Community Development Department for review and approval. This Dust Control Plan shall implement BAAQMD (Bay Area Air Quality Management District) established standard measures (Basic Construction Mitigation Measures) for reducing fugitive dust emissions, including but not limited to: • All exposed surfaces (e.g., parking areas, staging areas soil piles, graded areas and unpaved access roads) shall be watered two times per day. • All haul trucks transporting soil, sand, or other loose material off-site shall be covered. • All visible mud or dirt tracked-out onto adjacent public roads shall be removed using wet power vacuum street sweepers at least once per day. The use of dry power sweeping is prohibited. • All vehicle speeds on unpaved roads shall be limited to 15 mph. • All roadways, driveways, and sidewalks to be paved shall be completed as soon as possible. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 17 • Building pads shall be laid as soon as possible after grading unless seeding or soil binders are used. • Idling times shall be minimized either by shutting equipment off when not in use or reducing the maximum idling time to five (5) minutes (as required by the California airborne toxics control measure; Title 13, Section 2485 of California Code of Regulations (CCR)). Clear signage shall be provided for grading and construction workers at all access points. • All construction equipment shall be maintained and properly tuned in accordance with manufacturer’s specifications. All equipment shall be checked be a certified mechanic and determined to be running in proper condition prior to operation. 37. The Project sponsor shall inform the contractor, general contractor or site supervisor of these requirements and shall be responsible for informing subcontractors of these requirements and for implementing these measures on the site. 38. A dust control / noise control coordinator shall be designated for the Project. a. A publicly visible sign shall be posted on the site with the telephone number and the name of person regarding dust or construction complaints. This person shall be the applicant or contractor team and shall have the authority to take corrective action. The coordinator shall respond to any complaints and take corrective action within 48 hours of receipt. The BAAQMD phone number and City of San Rafael phone numbers shall also be visible to ensure compliance with applicable regulations. b. Prior to issuance of the building permit, the form, design and content of the sign shall be reviewed and approved by the Planning Division. 39. The project shall comply with the City’s inclusionary or affordable housing requirement (currently Section 14.16.030 of the SRMC) plus the additional affordable housing required by the City to grant the applicant’s request for both a height bonus and a density bonus beyond provisions provided by the State Density Bonus law: a. The project is required to provide nine (9) below-market-rate or BMR units composed of five (5) BMR units at the very low-income household level and four (4) BMR units at the low-income household level) to comply with the City’s inclusionary or affordable housing requirement; plus b. As offered by the applicant, the project shall provide an additional three (3) BMR ‘studio’ units at the moderate-income household level for a period ten (10) years. c. The project sponsor is required to enter into a BMR (below-market-rate) agreement with Marin Housing Authority, deed-restricting the income level for occupancy of the affordable units and obtain City Council approval of the BMR agreements. The configuration of the BMR units shall reflect the generally configuration of the total units approved by the project, with the exception of the three (3) BMR units at the moderate-income household level which will be ‘studio’ units. These BMR units shall be spread out evenly throughout the floors of the new building. The specific location of these BMR units may ‘float’ though they shall not be ‘bunched’ together. These BMR units shall be comparable in size, finishes and unit mixture to the market rate units. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 18 Department of Public Works 40. A grading permit is required for the project from the Department of Public Works (111 Morphew St.). The grading permit submittal shall include a site-specific erosion and sediment control plan 41. The project sponsor shall obtain an encroachment permit for any work within the Right-of- Way (ROW) from the Department of Public Works. Access to the adjacent properties shall be maintained throughout construction unless alternative arrangements are made. 42. All exterior doors shall not swing into the public Right-of-Way (ROW), pursuant to CBC 3202.2). 43. Given the scope of the project and available staff time, third party inspection may be required on behalf of the City. If determined necessary by the Department of Public Wo rks, a deposit may be required to fund inspection activity, including but not limited to grading, traffic, drainage, and access. 44. Frontage improvements shall include new sidewalk, curb and gutter. Any reduction in the frontage improvements shall be determined by the Department of Public Works at the time of issuance of a building permit, or as approved based on field observations during construction. Repaving extents of the adjacent roadways shall be determined at the time of encroachment permit application. For moratorium streets full width resurfacing shall be required. A conduit shall be provided along the frontage, to serve future City communication system upgrades, such as signal interconnection. 45. This site is located within Special Flood Hazard Area Zone AH with a Base Flood Elevation (BFE) of 11.0 feet. Improvements shall meet FEMA’s flood damage resistant materials guidelines as provided in Technical Bulletin 2. The areas located below the base flood elevation shall be designed to resist hydrodynamic forces and include protection for mechanical and electrical systems as required in Technical Bulletin 7. More information is available on FEMA’s website, with Technical Bulletins listed at: https://www.fema.gov/media-library/collections/4. 46. This project includes more than 5,000 square feet of total impervious area replacement and creation and is a regulated project. Provide a stormwater control plan in compliance with MCSTOPPP requirements. This is a short-written document to accompany the plan set. A stormwater facilities maintenance agreement is also required. More information is available from MCSTOPPP, hosted on the Marin County Website. See tools and guidance, and post construction requirements at: http://www.marincounty.org/depts/pw/divisions/mcstoppp/development/new-and- redevelopment-projects. 47. Prior to building permit issuance, additional information on the maintenance of the proposed stormwater bioretention treatment facilities as well as a stormwater facility maintenance agreement shall be required. 48. A construction vehicle impact fee shall be required at the time of building permit issuance; which is calculated at 1% of the valuation, with the first $10,000 of valuation exempt. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 19 49. The project shall pay a traffic mitigation fees (currently $250,514, based on 59 net new peak hour (33 a.m. and 26 p.m.) traffic trips (59 x $4,246), to be determined at the time of building permit issuance. The final fee shall include a reduction based on the number of peak hour trips resulting from the 12 affordable or BMR units required by the project. Additional traffic control enhancements may be required in and around the project site, as discussed in the revised traffic study (Fehr and Peers, dated January 14, 2019) for the project. San Rafael Sanitation District (SRSD) 50. Prior to building permit issuance, sewer connection fees are required for the proposed new residential units (currently $1,159,152.00, based on 120 units at $9,659.60 per unit). 51. New sewer connection fees are required for the commercial space as well, if plumbing fixtures are proposed. These fees have not been calculated by SRSD. 52. Credit for existing plumbing fixtures has not been calculated. In order to receive credit for these fixtures in the existing buildings proposed for demolition, the project sponsor shall submit plans to SRSD which include a full inventory of the existing facilities accompanied by photos. 53. Provide calculations to SRSD on the potential wastewater flow that will be generated daily from the proposed 120 residential units and any commercial space. 54. Reference Civil Drawing Sh. C.5: a. A backflow prevention device is required for the project. b. The sewer lateral shall be connected to the sewer mainline using a wye connection and shear band couplings. c. Drainage to the trench drains shall be limited to the water flow from within the enclosed garage area. No stormwater runoff from the sidewalk or any area outside the garage shall drain to the trench drains that connect to the sanitary sewer system. Community Development Department, Building Division 55. School fees will be required for the project to be paid to the School district, prior to issuance of a building permit. Calculations for the fee are done by San Rafael City Schools, and those fees (currently computed at $3.79 per square foot of new living area and $0.61 per square foot of new non-living building area) are paid directly to them (currently 310 Nova Albion Way, San Rafael, CA 94903). Proof of payment shall be submitted to the Building Division prior to issuance of the building permit. 56. Prior to any use or occupancy of this building or structure or any portion there of a “Certificate of Occupancy” must be issued by the Chief Building Official pursuant to California Building Code Section 111.1. Failure to secure a “Certificate of Occupancy” is a violation and will result in a $500 citation per day that the violation continues. 57. The design and construction of all site alterations shall comply with the current editions of the California Building Code, Plumbing Code, Electrical Code, California Mechanical Code, California Fire Code, California Energy Code, Title 24 California Energy Efficiency Standards, California Green Building Standards Code and City of San Rafael Ordinances and Amendments. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 20 58. A building permit is required for the proposed work. Applications shall be accompanied by four (4) complete sets of construction drawings to include: a) Architectural plans b) Structural plans c) Electrical plans d) Plumbing plans e) Mechanical plans f) Site/civil plans (clearly identifying grade plan and height of the building) g) Structural Calculations h) Truss Calculations i) Soils reports j) Green Building documentation k) Title-24 energy documentation 59. Based on the distance to the property line (and/or adjacent buildings on the same parcel), the building elements shall have a fire resistive rating not less than that specified in CBC Table 601 and exterior walls shall have a fire resistive rating not less than that specified in CBC Table 602. 60. Cornices, eaves overhangs, exterior balconies and similar projections extending beyond the floor area shall conform to the requirements of CBC 705.2. Projections shall not extend beyond the distance determined by the following two methods, whichever results in the lesser projection: a) A point one-third the distance from the exterior face of the wall to the lot line where protected openings or a combination of protected openings and unprotected openings are required in the exterior wall. b) A point one-half the distance from the exterior face of the wall to the lot line where all openings in the exterior wall are permitted to be unprotected or the building is equipped throughout with an automatic sprinkler system. c) More than 12 inches into areas where openings are prohibited. 61. The occupancy classification, construction type and square footage of the new building shall be specified on the plans in addition to justification calculations for the allowable area of each building. Site/civil plans prepared by a California licensed surveyor or engineer clearly showing topography, identifying grade plane and height of the building. 62. The new buildings contain several different occupancy types. Individual occupancies are categorized with different levels of hazard and may need to be separated from other occupancy types for safety reasons. Under mixed-occupancy conditions the project architect has available several design methodologies (accessory occupancies, non- separated occupancies, and separated occupancies) to address the mixed-occupancy concerns. 63. Buildings located four (4) or more stories above grade plane shall provide one stairwell extending to the roof, unless the roof slope exceeds an angle of 4 vertical to 12 horizontal CBC 1009.13. 64. The maximum area of unprotected and protected openings permitted in the exterior wall in any story of a building shall not exceed the percentages specified in CBC Table 705.8 “Maximum Area of Exterior Wall Openings Based on Fire Separation Distance and Degree of Opening Protection.” To calculate the maximum area of exterior wall openings you must Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 21 provide the building setback distance from the property lines and then justify the percentage of proposed wall openings and include whether the opening is unprotected or protected: • 15% exterior wall openings (in any story) in sprinklered buildings where the openings are 3’ to less than 5’ from the property line or buildings on the same property. • 25% exterior wall openings (in any story) in sprinklered buildings where the openings are 5’ to less than 10’ from the property line or buildings on the same property. • 45% exterior wall openings (in any story) in sprinklered buildings where the openings are 10’ to less than 15’ from the property line or buildings on the same property 65. The new building shall have address identification placed in a position that is plainly legible and visible from the street or road fronting the property. Numbers painted on the curb do not satisfy this requirement. For new buildings, the address shall be internally-illuminated or externally-illuminated and remain illuminated at all hours of darkness. Number shall be a minimum 6 inches in height with ½ inch stroke for commercial applications. The address shall be contrasting in color to their background (SMC 12.12.20). 66. Bollards must be placed in the garage to protect mechanical equipment from vehicular damage when located in the path of a vehicle (if applicable). 67. Any demolition of existing structures shall require a permit. Demolition permit submittal shall include three (3) copies of the site plan, asbestos certification and PG&E disconnect notice. All required permits from the Bay Area Air Quality Management District shall be obt ained and documentation provided prior to building permit issuance and any work commencing. 68. A grading permit is required for any grading or site remediation, soils export, import and placement. Provide a detailed soils report prepared by a qualified engineer to address these procedures. In particular, the report should address the import and placement and compaction of soils at future building pad locations and should be based on an assumed foundation design. This information should be provided to Building Division and Department of Public Works for review and comments prior to any such activities taking place. 69. Prior to building permit issuance for the construction of the new building, geotechnical and civil pad certifications are to be submitted. Building pad locations will have to be surveyed and marked prior to placement of foundations. 70. In the parking garage, mechanical ventilation will be required capable of exhausting a minimum of .75 cubic feet per minute per square foot of gross floor area pursuant to CMC Table 4-4. 71. In the parking garage, in areas where motor vehicles are stored, floor surfaces shall be of noncombustible, nonabsorbent materials. Floors shall drain to an approved oil separator or trap discharging to sewers in accordance with the Plumbing Code and SWIPP. 72. The parking garage ceiling height shall have a minimum vertical clearance of 8’ 2” where required for accessible parking. 73. Any public area within the new building shall be provided with sanitary facilities per CPC Sec 412 and Table 4-1 (including provisions for persons with disabilities). Separate facilities may be required for each sex depending on use. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 22 74. In accordance with California Plumbing Code section 422, in business and mercantile with a total occupant load of 50 or less including customers and employees, one toilet facility designed for use by no more than one person at a time, shall be permitted for use by both sexes. 75. Facilities in mercantile and business occupancies, toilet facility requirements for customers and employees shall be permitted to be met with a single set of restrooms accessible to both groups. The required number of fixtures shall be the greater of the required number for employees or the required number for customers. Fixtures for customer use shall be permitted to be met by providing a centrally located toilet facility within a max distance not to exceed 500 feet. In stores with a floor area of 150 square feet or less the requirement to provide facilities for employees shall be permitted to be met by providing a centrally located toilet facility within a max distance not to exceed 300 feet. 76. Minimum elevator car size (interior dimension) 60” wide by 30” deep with an entrance opening of at least 60” or a car size of 42” wide by 48” deep with an entrance opening of 36” or a car size of 60” wide by 36” deep with an entrance opening of at least 36”. 77. All buildings with four (4) or more floors and one or more elevators shall provide not less than one medical emergency service elevator. The medical emergency service elevator shall accommodate the loading and transport of an ambulance gurney or stretcher. The elevator car size shall have a minimum clear distance between walls ad door excluding return panels not less than 80” x 54” and a minimum distance from wall to return panel not less than 51” with a 42” side slide door. 78. In the service areas, mechanical ventilation will be required capable of exhausting a minimum of 1.5 cubic feet per minute per square foot of gross floor area. Connecting offices, waiting rooms, restrooms, and retail areas shall be supplied with conditioned air under positive pressure. 79. The project shall be designed to provide access to the physically disabled in accordance with requirements of Title-24, California Code of Regulation. For existing buildings and facilities when alterations, structural repairs or additions are made, accessibility improvements for persons with disabilities may be required. Improvements shall be made, but are not limited to, the following accessible features: a) Path of travel from public transportation point of arrival b) Routes of travel between buildings c) Accessible parking d) Ramps e) All public entrances f) Sanitary facilities (restrooms) g) Drinking fountains & Public telephones (when provided) h) Accessible features per specific occupancy requirements i) Accessible special features, (i.e., ATM's point of sale machines, etc.) 80. The site development of items such as common sidewalks, parking areas, stairs, ramps, common facilities, etc. are subject to compliance with the accessibility standards contained in Title-24, California Code of Regulations. Pedestrian access provisions should provide a minimum 48" wide unobstructed paved surface to and along all accessible routes. Items such as signs, meter pedestals, light standards, trash receptacles, etc., shall not encroach on this 4' minimum width. Also, note that sidewalk slopes and side slopes shall not exceed Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 23 published minimums per California Title 24, Part 2. The civil, grading and landscape plans shall address these requirements to the extent possible. 81. The parking garages shall have a minimum vertical clearance of 8’ 2” ceiling height where required for accessible parking. 82. Multistory apartment buildings with three (3) or more residential units or condominium buildings with four (4) or more residential units shall provide at least 10% of the dwelling units, but no less than one (1) dwelling unit, which comply with the accessible requirements per CBC 1102A.3, as follows: a) The primary entry to the dwelling unit shall be on an accessible route unless exempted by site impracticality tests in CBC Section 1150A. b) At least one powder room or bathroom shall be located on the primary entry level, served by an accessible route. c) All rooms or spaces located on the primary entry level shall be served by an accessible route. Rooms and spaces located on the primary entry level and subject to this chapter may include but are not limited to kitchens, powder rooms, bathrooms, living rooms, bedrooms or hallways. 83. Minimum shower size in the fully accessible room must be a minimum of 60” wide by 30”. 84. Multifamily dwelling and apartment accessible parking spaces shall be provided at a minimum rate of 2 percent of the covered multifamily dwelling units. At least one space of each type of parking facility shall be made accessible even if the total number exceeds 2%. 85. When parking is provided for multifamily dwellings and is not assigned to a resident or a group of residents, at least 5% of the parking spaces shall be accessible and provide access to grade-level entrances of multifamily dwellings and facilities (e.g. swimming pools, club houses, recreation areas and laundry rooms) that serve the dwellings. Accessible parking spaces shall be located on the shortest accessible route to an accessible building, or dwelling unit entrance. 86. Public accommodation disabled parking spaces must be provided according the following table and must be uniformly distributed throughout the site: Total Number of Parking Spaces Provided Minimum Required Number of H/C Spaces 1 to 25 1 26 to 50 2 51 to 75 3 76 to 100 4 101 to 150 5 151 to 200 6 201 to 300 7 301 to 400 8 401 to 500 9 501 to 1,000 Two percent of total 1,001 and over Twenty, plus one for each 100 Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 24 or fraction thereof over 1,001 87. At least one (1) disabled parking space shall be van-accessible, 9’ in width plus an 8’-wide off- load area or 17’-wide overall. Additionally, one in every eight required handicap spaces shall be van accessible. 88. The proposed residential units shall meet the sound attenuation requirements of CBC Chapter 12. In particular, the residential units facing Third St., Tamalpais Ave. and Lincoln Ave. may require special glazing and/or sound attenuation features to compensate for the adjacent traffic/street noise. 89. This project is subject to the City of San Rafael Green Building Ordinance. A sliding scale is applied based on the average unit square footage. New multi-family dwellings must comply with the “Green Building Rating System” by showing a minimum compliance threshold between 65 and 75 points. Additionally, the energy budget must also be below Title 24 Energy Efficiency Standards a minimum 15%. San Rafael Fire Department, Fire Prevention Bureau 90. The design and construction of all site alterations shall comply with the current editions of the California Fire Code and City of San Rafael Ordinances and Amendments. 91. Deferred Submittals for the following fire protection systems shall be submitted to the Fire Prevention Bureau for approval and permitting prior to installation of the systems: a) Fire Sprinkler plans (Deferred Submittal to the Fire Prevention Bureau) b) Fire Standpipe plans (Deferred Submittal to the Fire Prevention Bureau) c) Private Fire Service Main plans (Deferred Submittal to the Fire Prevention Bureau) d) Fire Alarm plans (Deferred Submittal to the Fire Prevention Bureau) 92. Show the location of address numbers on the building elevation. The new building shall have address identification placed in a position that is plainly legible and visible from the street or road fronting the property. Please refer to Fire Prevention Bureau Premises Identification Standards 09-1001, Table 1. 93. As the building is over 30 feet in height, an aerial fire apparatus access roadway is required parallel to one entire side of the building. a) The Aerial apparatus access roadway shall be located within a minimum 15 feet and a maximum of 30 feet from the building. b) The minimum unobstructed width for an aerial fire apparatus access road is 26’. c) Overhead utility and power lines shall not be located within the aerial fire apparatus access roadway, or between the roadway and the building. 94. Aerial fire apparatus access roads shall be designated “fire lanes”; with curbs painted red and contrasting white lettering stating “No Parking Fire Lane” and signs shall be posted in accordance CFC Section 503.3. 95. When a building is fully sprinklered, all portions of the exterior building perimeter shall be located within 250’ of an approved fire apparatus access road. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 25 96. Clarify if the fire flow requirements of Appendix B, table B105.1 of the CFC are being met by the surrounding hydrants, The required hydrants shall be within 400 feet (400’) of all exterior points of the new building. 97. Provide stairways for fire department roof access pursuant to CFC 504.3. 98. At least one (1) elevator in the new building shall be designated as an accessible means of egress and will require emergency power. Please show the locations of the emergency generators. Separate permits will be required to be issued for any above ground fuel storage tanks pursuant to CBC 1009.2.1. 99. Each building shall provide a least one (1) elevator that will accommodate an ambulance stretcher pursuant to CBC 3002.4. 100. Hazardous materials placards shall be installed in accordance with NFPA 704. 101. A fire apparatus access plan shall be prepared for this project. Fire apparatus plan shall show the location the following: a) Designated fire apparatus access roads. b) Red curbs and no parking fire lane signs. c) Onsite fire hydrants. d) Fire Department Connection (FDC). e) Double detector check valve. f) Street address sign. g) Recessed Knox Box h) Fire Alarm annunciator panel. i) Provide a note on the plans as follows: “The designated fire apparatus access roads and fire hydrant shall be installed and approved by the Fire Prevention Bureau prior construction of the building”. 102. A Knox Box is required at the primary point of first response to the new building. A recessed mounted Knox Box # 3275 Series is required for this project; the Knox Box shall be clearly visible upon approach to the main entrance from the fire lane. Note the Knox Box must be installed from 72” to 78” above finish grade; show the location on the plans. 103. The mechanical parking system shall comply with the following requirements: a) The automatic fire sprinkler system shall be designed with the appropriate coverage density. b) The mechanical parking system shall allow for fire department access. c) The mechanical parking system shall allow for appropriate heat and smoke removal. d) The mechanical parking system shall provide fire department manual shutoff and operation (similar to elevator recall). 104. Mechanical, electrical and fire sprinkler riser rooms shall be identified pursuant to CFC Section 509 (4-inch lettering, ½-inch stroke in a color that contrasts to background). 105. Contact the Marin Municipal Water District (MMWD) to make arrangements for MMWD to provide adequate water supply service for the required fire protection system. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 26 During Construction Community Development Department, Planning Division 106. Applicant/contractor shall comply with all conditions of approval related to Construction Management Plan, and other conditions related to construction impacts. 107. The following measures shall be implemented during the demolition process: a. Watering shall be used to control dust generation during demolition of structures and breakup of pavement. b. All trucks hauling debris from the site shall be covered c. Dust-proof chutes shall be used to load debris into trucks whenever feasible. d. A dust control coordinator shall be designated for the project. The name, address and telephone number of the dust coordinator shall be prominently posted on-site and shall be kept on file at the Planning Division. The coordinator shall respond regarding dust complaints promptly (within 24 hours) and shall have the authority to take corrective action. Marin Municipal Water District (MMWD) 108. District records indicate that the property’s current annual water entitlement is insufficient to meet the water demand for the project and the purchase of additional water entitlement will be required. Additional water entitlement will be available upon request and fulfillment of the following requirements: a) Complete a High-Pressure Water Service Application. b) Submit a copy of the building permit. c) Pay the appropriate fees and charges. d) Comply with the District’s rules and regulations in effect at the time service is requested, including the installation of a meter per structure per use. e) Comply with all indoor and outdoor requirements of District Code Title 13 – Water Conservation. Indoor plumbing fixtures shall meet specific efficiency requirements. Landscape, irrigation, grading and fixture plans shall be submitted to the District for review and approval. Any questions regarding District Code Title 13 – Water Conservation should be directed to the District’s Water Conservation Department at (415) 945-1497. You may also find information on the District’s water conservation requirements online at www.marinwater.org. f) Comply with the backflow prevention requirements, if upon the Districts review backflow protection is warranted, including installation, testing and maintenance. Questions regarding backflow requirements should be directed to the Backflow Prevention Program Coordinator at (415) 945-1558. g) Use of recycled water is required, where available, for all approved uses, including irrigation and the flushing of toilets and urinals. Questions regarding the use of recycled water should be directed to Dewey Sorensen at (415) 945-1558. h) Installation of gray water recycling systems is required when practicable. Pacific Gas & Electric 109. Electric and gas service to the project site will be provided in accordance with the applicable extension rules, which are available on PG&E’s website at http://www.pge.com/myhome/customerservice/other/newconstruction or contact (800) PGE- 5000. It is highly recommended that PG&E be contacted as soon as possible so that there is adequate time to engineer all required improvements and to schedule any site work. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 27 110. The cost of relocating any existing PG&E facilities or conversion of existing overhead facilities to underground shall be the sole responsibility of the applicant or property owner. 111. Prior to the start excavation or construction, the general contractor shall call Underground Service Alert (USA) at (800) 227-2600 to have the location of any existing underground facilities marked in the field. Prior to Occupancy Community Development Department, Planning Division 112. Prior to occupancy of any of the units, a post-construction report from an acoustical engineer shall be submitted to the Planning Division verifying that the multifamily residential units comply with the interior noise standard as prescribed by State Administrative Code standards, Title 25, Part 2. 113. Prior to occupancy of any of the units, a post-construction report from a lighting engineer shall be submitted to the Planning Division verifying that the lighting levels of the project comply with the City’s recommended lighting levels (see SRMC Section 14.16.227). 114. Prior to occupancy, the project Geotechnical Engineer shall submit a letter to the City identifying that the project Geotechnical Engineer inspected the project during the construction and the project complied with their recommendations and that all recommendations were property incorporated during construction of the project 115. Final inspection of the project by the Community Development Department, Planning Division, is required. The applicant shall contact the Planning Division to request a final inspection upon completion of the project. The final inspection shall require a minimum of 48-hour advance notice. 116. The landscape architect for the project shall submit a letter to the Planning Division, confirming the landscaping has been installed in compliance with the approved project plans and the irrigation is fully functioning. After Occupancy Community Development Department, Planning Division 117. Following the issuance of a Certificate of Occupancy, all new exterior lighting shall be subject to a 90-day lighting level review period by the City to ensure that all lighting sources provide safety for the building occupants while not creating a glare or hazard on adjacent streets or be annoying to adjacent residents. During this lighting review period, the City may require adjustments in the direction or intensity of the lighting, if necessary. All exterior lighting shall include a master photoelectric cell with an automatic timer system, where the intensity of illumination shall be turned off during daylight. Exhibit 2 File Nos. UP18-008, ED18-018, & LLA18-001 28 Lot Line Consolidation (LLA18-001) Conditions of Approval Prior to Issuance of Grading/Building Permits Community Development Department, Planning Division 1. The applicant shall submit five (5) copies of the plat map showing the existing and proposed lot lines, the location of any existing structures, easements, prominent trees and access to all public streets, and a copy of Grant Deed, prepared for the lot line consolidation, for review by the City Engineer and approval, prior to recordation with the County of Marin Recorder’s Office. The foregoing Resolution was adopted at the regular City of San Rafael Planning Commission meeting held on the 27th day of August 2019. Moved by Commissioner_____and seconded by Commissioner . AYES: Commissioners: NOES: Commissioners: ABSENT: Commissioners: ABSTAIN: Commissioners: SAN RAFAEL PLANNING COMMISSION ATTEST: BY: Paul A. Jensen, Secretary Sarah Loughran, Chair Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-1 LAND USE ELEMENT LU-2. Development Timing. For health, safety and general welfare reasons, new development should only occur when adequate infrastructure is available consistent with the following findings: a. Project-related traffic will not cause the level of service established in the Circulation Element to be exceeded; b. Any circulation improvements needed to maintain the level of service standard established in the Circulation Element have been programmed and funding has been committed; c. Environmental review of needed circulation improvement projects has been completed; d. The time frame for completion of the needed circulation improvements will not cause the level of service in the Circulation Element to be exceeded, or the findings set forth in Policy C-5 have been made; and e. Sewer, water, and other infrastructure improvements will be available to serve new development by the time the development is constructed Consistent The project proposes to redevelop two adjacent in-fill parcels, currently served by City infrastructure and services. The smaller parcel (703 Third St.) is located at the southwest corner of Third St. and Tamalpais Ave. while the larger parcel (723 Third St. / 898 Lincoln Ave.) is located at the southeast corner of Third St. and Lincoln Ave. Both parcels are located with Second/Third St. Mixed -Use East (2/3 MUE) District zone, a Downtown commercial zoning district. The project proposes to demolish approximately 15,000 sq. ft. of combined commercial space within two, 1-2-story buildings and a surface parking lot and construct a new, six-story, 73-tall mixed-use building with 120 apartment units above 121 garage parking spaces, of which 109 parking spaces will be provided by mechanical parking lifts. The project proposes a total of 12 affordable (‘below-market-rate or BMR) units, including nine (9) required BMR units (5 units at the very low-income level and 4 units at the low-income level) and three (3) additional voluntary BMR units in the moderate-income level for a 10-year term. The City’s Traffic Engineer has reviewed the project and evaluated its traffic impacts against the City’s level of service standards. A Transportation Impact Analysis report (Fehr & Peers Transportation Consultants, revision dated January 14, 2019) originally submitted for the project was revised to expand the study area and to modify the methodology used in the analysis. The results of the updated trip generation indicate that, based on traffic counts of existing land use trips, and with deductions applied f or ‘walk, bike and transit’ trips due to the site’s proximity to the Downtown, the SMART station and the transit center, the project would result in 33 net new AM peak hour trips (7 - 9am weekdays) and 26 PM net new peak hour trips (4-6pm weekdays). The Transportation Impact Analysis report indicates surrounding intersections and arterials would continue to operate (existing plus project volumes) acceptably per the City’s LOS (Level of Service) standards in the General Plan. The results of the Transportation Impact Analysis report have been confirmed by the City’s Traffic Engineer. Staff finds the proposed density (120 units) would result in negligible traffic impacts which are off-set by the payment of traffic mitigation fees on the 59 new peak hour trips anticipated to result from the project, which would be a condition of approval. The payment of traffic mitigation fees would be a condition of approval and are intended to help fund the project’s fair share of local circulation improvement projects by the Ci ty. Lastly, the quasi- governmental agencies that would provide water and sewer service to the site have reviewed the proposed project and determined that there is adequate capacity to service the new projec t. LU-8. Density of Residential Development. Residential densities are shown in Exhibit 11, Land Use Consistent with conditions See LU-2 discussion above. Both parcels within the project site are assigned a General Plan land use Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-2 Categories, pages 38-40. Maximum densities are not guaranteed but minimum densities are generally required. Density of residential development on any site shall respond to the following factors: site resources and constraints, potentially hazardous conditions, traffic and access, adequacy of infrastructure, City design policies and development patterns and prevailing densities of adjacent developed areas. designation of Second/Third St. Mixed-Use (2/3 MU). The 2/3MU land use designation allows residential uses as part of mixed-use development at densities between 32 and 62 per gross acre. Based on this allowable density, the 27,367 sq. ft. project site would be allowed 20 to 39 residential units. The Zoning designation for the project site is Second/Third St. Mixed-Use East (2/3 MUE) District, which allows a base residential density of one (1) unit per 600 sq. ft. of lot area or 45 units. By complying with the City’s inclusionary housing requirement (20% of the maximum base density or 9 affordable or BMR units), the project is eligible to request a State Density Bonus of up to 35%, or 16 additional market-rate units, and a maximum of two (2) concessions/incentives. Therefore, by meeting the City affordable housing requirement, the project is allowed a maximum density of 61 units. As noted above, the project has requested a 75-unit density bonus above the base density, for a total of 120 units, which translates to a proposed 162% density bonus. This additional density bonus is one of the two concessions/incentives requested by the project (additional building height is the other concession/incentive requested by the project) and requires the submittal of a financial pro forma which demonstrates that the proposed 120 units are needed to make the project financially feasible to develop. The City has hired an independent 3 rd party economist, Seifel Associates, to review the financial pro forma and assess whether the number of units requested are necessary to make the project financially feasible . After reviewing the financial pro forma, the City’s consulting economist has determined the project does need the proposed 162% density bonus, or 120 units, in order for the project to be able to be financially feasible. A maximum 61-unit project (45- unit base density plus a 35% density bonus or 16 additional units) would not be feasible under current development conditions. The City is not required to grant a density bonus of more than 35%, but it may under State law for projects that provided more affordability than the 20% required. For the project, the applicant has proposed additional density than the minimum required to obtain a 35% density bonus. At the request of the Planning Commission to provide more affordability to off-set the proposed additional density, the project has voluntarily increased the proposed affordability, from nine (9 ) BMR units (5 units at very low-income household levels and 4 units at low-income household levels) to 12 BMR units (5 units at very low-income household levels and 4 units at low-income household levels plus 3 BMR units at the moderate-income household levels for a fixed 10-year term) Additionally, there are other considerations when evaluating the proposed density, including: • The 2/3 MUE District zoning for the site not only allows for residential density but also allows for non -residential (commercial) intensity of up to a 1.5 FAR (Floor Area Ratio). For the project site, the 1.5 FAR would allow up to 41,051 sq. ft, which would translate to approximately two entire floors worth of additional commercial development; • Although residential density is not regulated by square footage, the proposed project proposes 120 units in approximately 81,442 sq. ft of building area dedicated to residential use, which translates to an average of 678 sq. ft/unit. The same size building could be proposed at the maximum base density of 45 units, but average 1,809 sq. ft/unit, for instance, or the 35% density bonus of 61 units and average 1,313 sq. ft/unit, for instance. Given the need for housing in San Rafael as well Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-3 as throughout the State, staff would assert that a greater number of smaller units would be more beneficial to the community. This is an opportunity site, close to transit, in the heart of downtown and is possibly the most appropriate location for higher density; and • The project provides excess parking than that required by the State for projects in close proximity to transit. The project is required to provide 88 spaces though proposes to provide 121 total spaces (composed of 109 resident parking + 12 ADA, ride share, drop off and EV parking spaces . LU-9. Intensity of Nonresidential Development. Commercial and industrial areas have been assigned floor area ratios (FARs) to identify appropriate intensities (see Exhibits 4, 5 and 6). Maximum allowable FARs are not guaranteed, particularly in environmentally sensitive areas. Intensity of commercial and industrial development on any site shall respond to the following factors: site resources and constraints, traffic and access, potentially hazardous conditions, adequacy of infrastructure, and City design policies. Consistent According to Exhibit 6 (Floor Area Ratios in Downtown Environs) of the General Plan, the maximum nonresidential development allowable on the project site is 1.5 FAR (floor area ratio) or 41,505.5 sq. ft. based on 27,367 sq. ft. of combined lot area. The project proposes 969 sq. ft. of ground level nonresidential development or commercial space on the project site. LU-12. Building Heights. Citywide height limits in San Rafael are described in Exhibits 7 and 8. For Downtown height limits see Exhibit 9. Consistent with conditions According to Exhibit 9 (Building Heights Limits in Downtown San Rafael) and Exhibit 10 (Height Bonuses) of the General Plan, the maximum height limit for the project site is 54 ft. plus a 12 ft height bonus by meeting the affordable housing requirement for a total overall height limit of 66 ft. As designed, the project proposes a building at 73 ft tall, exceeding the height limit by 7 feet. The height is measured to the top of the roof deck and the other architectural features on the roof deck (railing, and elevator overruns, trellises) do not count toward the maximum building height. During Conceptual Design Review by the Design Review Board (Board) and the Planning Commission in 2017, the project proposed to meet the 66 ft height limit. At that time, the design proposed to bury the garage level 1 ft below the elevation of the sidewalks. Following Conceptual Review, technical comments from City Departments and further investigation into the stacked parking lift, the project was increased in height by 7 feet, from 66 feet to 73 feet, based on the following modifications : • FEMA requirements require the garage level to be a 1 ft above the existing level. Therefore, a 2 ft increase of height resulted by placing the ground level at +1 ft above current elevations; • Further investigation into the mechanical parking lift stacker system preferred by the applicant resulted in the need for 2.5 ft. of additional height in the garage level, raising the garage plate height from 18.5 ft to 22 ft. and; • Plate height for the residential levels were increased from 9 ft to 9.5 ft, resulting in a 2.5 ft net Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-4 change to overall height. By meeting the affordability requirement, the project is requesting a State density bonus and two (2) concessions/incentives. One of these concessions is a requested density bonus of 162% and the other is a height bonus of 7’. Like the density bonus, the requested concession for the height bonus requires submittal of a financial pro forma demonstrating the concession/incentive is necessary to make the project financially feasible to develop. As noted above, the City hired a 3rd party economist (Seifel Associates) to review the financial pro forma , who concluded that the financial pro forma does demonstrate a 120-unit project is needed to make the project financially feasible . The project is required to provide 82 on-site parking spaces based on State Density Bonus law that requires 0.5 spaces/bedroom. The project proposes to provide 33 more parking spaces than required (121 provided vs 82 required) as an amenity and need for the residential units. The amount of proposed parking would generally equal 1 space per unit. The extra parking necessitates the need to either create two floors of parking or utilize a stacked parking system. Although it is conceivably possible to dig down and provide one floor of parking underground, the small size of the lot, FEMA requirements coupled with the high - water table would make this option nearly impossible. The other option is to only provide one level of parking without stackers, which would only require a 10 ft floor plate (rather than 22 ft) on the ground level. However, this option would not only render the project inconsistent with the parking requirements (only 66 spaces could be provided without use of parking stackers, where 82 are required), but also insufficient to meet the real-life parking demands of potential tenants in this project. LU-13. Height Bonuses. A height bonus may be granted with a use permit for a development that provides one or more of the amenities listed in Exhibit 10, provided the building’s design is consistent with Community Design policies and design guidelines. No more than one height bonus may be granted for a project. Consistent See LU-12 discussion above. By providing the required affordability (9 affordable or BMR units), the project is eligible for a 12’ height bonus, through a Use Permit, by virtue that the project site is located within the 2/3 MUE District. This height bonus is allowed by zoning. The project requests an additional 7’ height bonus, as a concession/incentive under the State Density Bonus law. On May 7, 2019, the Board reviewed the formal project for site and building design and unanimously (4 -0-2 vote; Planning Commission Liaison Davidson) recommended approval of the site and building design with enhanced “Gateway Corner” (Third St. and Tamalpais Ave.) façade treatments (unique materials and colors) and the proposed height bonuses and 73’ building height. The Board evaluated the revised site and building design for consistency with all applicable design-related General Plan policies and design criteria and guidelines and determined it to be well-designed. Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-5 LU-14. Land Use Compatibility. Design new development in mixed residential and commercial areas to minimize potential nuisance effects and to enhance their surroundings. Consistent See LU-13 discussion above. LU-18. Lot Consolidation Commercial and higher density residential parcels less than 6,000 square feet in size should be encouraged to be combined to provide adequate parking and circulation, minimize driveway cuts on busy streets, and maximize development and design potential. Consistent The project proposes to construct a mixed -use building over two (2) adjacent Downtown lots. Prior to building permit issuance, the project will need to merge or consolidate the lots into one common parcel by extinguishing the common property line currently separating the lots. A plat map with closure calculations shall be submitted to Planning for review and approval by the Land Development Engineer in the Department of Public Works prior to approval by the Community Development Director and recordation with Marin County by the Land Development Engineer. LU-23. Land Use Map and Categories. Land use categories are generalized groupings of land uses and titles that define a predominant land use type (See Exhibit 11). All proposed projects must meet density and FAR standards (See Exhibits 4, 5 and 6) for that type of use, and other applicable development standards. Some listed uses are conditional uses in the zoning ordinance and may be allowed only in limited areas or under limited circumstances. Maintain a Land Use Map that illustrates the distribution and location of land uses as en visioned by General Plan policies. (See Exhibit 11). Consistent with conditions See LU-2, LU-8 and LU-12 discussions above. HOUSING ELEMENT H-1. Housing Distribution. Promote the distribution of new and affordable housing of quality construction throughout the city to meet local housing needs. Consistent See LU-8 discussion above. The project proposes to construct 120 new residential apartment units in the Downtown, adjacent to the SMART downtown station and in close proximity to the Bettini Transi t Center (the exact location of which is unknown at this time). Of these new units, the project proposes a total of 12 BMR units, including nine (9) required BMR units (5 BMRs at the very low-income household level and 4 BMRs at the low-income household level) and three (3) additional voluntary BMR units at the moderate- income household level for a fixed 10-year period. Staff finds the project would help the City meet its RHNA (Regional Housing Needs Allocation) obligations, specifically housing goals in the very low- and low-income household levels. Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-6 H-2. Design That Fits into the Neighborhood Context. Design new housing, remodels and additions to be compatible in form to the surrounding neighborhood. Incorporate transitions in height and setbacks from adjacent properties to respect adjacent development character and privacy. Respect existing landforms and minimize effects on adjacent properties. Consistent The scale and quality of the existing development located south of the core Downtown (Fourth St.) and near U.S Highway 101 is changing, primarily due to the ongoing development of the BioMarin campus. Low profile (1- and 2-story) development is being replaced with much taller (5- and 6-story) buildings. Determining the predominant design character is a little more difficult. Structures within the adjacent BioMarin campus are integrated with a cohesive architectural design with coordinated façade treatments. The project proposes a similar contemporary design though with unique façade treatments (brick with Corten steel planters at the ground level, stucco at the mid-levels and a mixture of stucco and vertical and horizontal fiber cement board siding at the upper levels), greater articulation and stepbacks of the upper stories and a more ‘residential’ window proportion. The project design has been revised to provide equal, high-quality design attention to all four building elevations, including the rear elevation which is shared with 770 Second St. More vertical and horizontal articulation and stepbacks have been incorporated into the upper stories. In addition, previously proposed upper-story projections or encroachments over the sidewalk have been eliminated. H-3. Public Information and Participation. Provide information on housing programs and r elated issues. Require and support public participation in the formulation and review of the City’s housing policy, including encouraging neighborhood involvement in development review. Work with community groups to advocate programs that will increase affordable housing supply and opportunities. Ensure appropriate and adequate involvement so that the design of new housing will strengthen the character and integrity of the neighborhood. H-3a. Neighborhood Meeting. Require neighborhood meetings, as provided for by the City Council resolution for Neighborhood Meeting Procedures, for larger housing development proposals and those that have potential to change neighborhood character. In larger projects, the City requests that developers participate in formal meetings with the community. The City facilitates outreach by helping applicants find information on the appropriate neighborhood groups to contact. City staff attends meetings as a staff resource and conducts noticing of meetings. Consistent A neighborhood meeting is not required; however, the applicant has previously met with the Gerstle Park Neighborhood Association, the Montecito Homeowners Association and the Federation of San Rafael Neighborhoods to discuss and solicit input on the proposed project Notice of Conceptual Review for the project, by both the Board and the Planning Commission, the Planning Commission study session and the Board’s May 7th review of the formal project design was conducted in accordance with noticing requirements contained in Chapter 29 of the Zoning Ordinance. A Notice of Public Meeting was mailed to all property owners, residents, businesses and occupants within a 300-foot radius of the project site and the appropriate neighborhood groups (Downtown Business Improvement District, Federation of San Rafael Neighborhoods, Gerstle Park Neighborhood Assoc., Montecito Area Residents Assoc. and Lincoln-San Rafael Hill Neighborhood Assoc.), a minimum of 15 calendar days prior to the date of this hearing. Additionally, notice was posted on the project site, along the Third St., Tamalpais Ave. and Lincoln Ave. frontages. Notice of this Planning Commission meeting was also provided through mailed notices to property owner/residents/business within 300 feet of the site, as well as applicable neighborhood/business associations and posted along all three frontage s on the site. Public comments received by staff on the project are evenly mixed; some in support of the project proposing downtown housing and others in opposition to the project design, bulk/mass, height, and Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-7 perceived parking and traffic impacts. Public comments received through the conceptual review, during the previous proposed design, are attached as Exhibit 8. Public comments received on the project, since formal project review, with a revised improved design, are attached as Exhibit 9. Any comments received after distribution of the staff report, will be forwarded to the Commission under separate cover . Planning staff has also created a digital webpage on the project which has been uploaded with links to both the current plans and supportive studies and is updated to coordinate with all meeting and hearing notices for the project. This project webpage may be found from the City’s website, using the “Community Development Department” link, then the “Planning Division” link and finally the “Major Planning Project” link. The direct link to the project webpage is: https://www.cityofsanrafael.org/703-3. . H-9. Special Needs. Encourage a mix of housing unit types throughout San Rafael, including very low- and low-income housing for families with children, single parents, students, young families, lower income seniors, homeless and the disabled. Accessible units shall be provided in multi-family developments, consistent with State and Federal law. Consistent See H-1 discussion above. Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-8 H-14. Adequate Sites. Maintain an adequate supply of land designated for all types of residential development to meet the housing needs of all economic segments in San Rafael. Within this total, the City shall also maintain a sufficient supply of land for multifamily housing to meet the quantified housing need of very low, low, and moderate-income housing units. Encourage development of residential uses in commercial areas where the vitality of the area will not be adversely affected, and the site or area will be enhanced by linking workers to jobs, and by providing shared use of the site or area. H-14a. Residential and Mixed-Use Sites Inventory. Encourage residential development in areas appropriate and feasible for new housing. These areas are identified in Appendix B, Housing Element Background, Summary of Potential Housing Sites (available for view on the City’s website). Explore effective ways to share housing site information and developer and financing information to encourage development of underutilized institutional land. The City has employed different strategies to find the most effective way to deliver information about development. It is an ongoing and evolving process that has included practices such as preparing fact sheets for sites with multiple inquiries. H-14b. Efficient Use of Multifamily Housing Sites. Do not approve residential-only development below minimum designated General Plan densities unless physical or environmental constraints preclude its achievement. Residential-only projects should be approved at the mid- to high-range of the zoning density. If development on a site is to occur over time the applicant must show that the proposed development does not prevent subsequent development of the site to its minimum density and provide guarantees that the remaining phases will, in fact, be developed. Consistent See H-1 discussion above. The larger (723 Third St./898 Lincoln Ave.) of the two parcels within the project site is listed in the San Rafael General Plan 2020 (2015-2023 Housing Element; Appendix B – Background Report) as a “housing opportunity site” or as an underutilized m ixed-use site with the potential to create a large number of affordable units. The project site is uniquely located in the Downtown, across from the SMART downtown station and in close proximity of the relocated Bettini Transit Center (whose future location has not been determined at this time). The project proposes high-density residential development on in-fill parcels which allows high-density residential as part of a mixed-use project. The project would result in the construction of 120 residential apartment units and a total of 12 BMR units, including nine (9) required BMR units (5 BMRs at the very low-income household level and 4 BMRs at the low-income household level) and three (3) additional voluntary BMR units at the moderate-income household level for a fixed 10-year period. Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-9 H-14c. Continue to Implement Zoning Provisions to Encourage Mixed Use. San Rafael has been effective in integrating both vertical mixed use and higher density residential development within its Downtown. As a means of further encouraging mixed use in commercial areas outside the Downtown, General Plan 2020 now allows site development capacities to encompass the aggregate of the maximum residential density PLUS the maximum FAR for the site, thereby increasing development potential on mixed use sites. The City will continue to review development standards to facilitate mixed use, including: a. Encourage adaptive reuse of vacant buildings and underutilized sites with residential and mixed use development on retail, office, and appropriate industrial sites b. Explore zoning regulation incentives to encourage lot consolidation where needed to facilitate housing. c. Review zoning requirements for retail in a mixed- use building or site and amend the zoning ordinance as necessary to allow for residential-only buildings in appropriate mixed-use zoning districts. H-15. Infill Near Transit. Encourage higher densities on sites adjacent to a transit hub, focusing on the Priority Development Area surrounding the San Rafael Transportation Center and future Downtown SMART station. H-15b. Downtown Station Area Plan. The coming of SMART rail service to Downtown San Rafael in 2016 is an opportunity to build on the work that the City has undertaken to revitalize the Downtown and to create a variety of transportation and housing options, economic stability, and vibrant community gathering places in the heart of San Rafael. General Plan 2020, adopted in 2004, allowed for higher residential densities and reduced residential parking standards to encourage housing Consistent See H-14 discussion above. Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-10 development within the heart of Downtown that would support local businesses and allow people to live close to their place of work. The Downtown Station Area Plan, accepted by City Council in June 2012, establishes a series of implementing actions, the following of which specifically serve to facilitate higher density residential and mixed-use infill in the area. H-18. Inclusionary Housing. The City requires residential projects to provide a percentage of affordable units on site and/or pay in-lieu of fees for the development of affordable units in another location. The City’s program requires the units remain affordable for the longest feasible time, or at least 55 years. The City's primary intent is the construction of units on-site. The units should be of a similar mix and type to that of the development as a whole and dispersed throughout the development. If this is not practical or not permitted by law, the City will consider other alternatives of equal value, such as in-lieu fees, construction of units off-site, donation of a portion of the property for future non-profit housing development, etc. Allow for flexibility in providing affordable units as long as the intent of this policy is met. Specific requirements are: Project Size % Affordable Units Req'd 2 – 10 Housing Units* 10% 11 – 20 Housing Units 15% 21+ Housing Units 20% * Exemptions for smaller projects units may be provided for in the Rental Units. Provide, consistent with State law, a minimum of 50% of the BMR units affordable to very low-income households at below 50% of median income, with the remainder affordable to low income households at 50-80% of median income. Sale/Ownership Units. Provide a minimum of 50% of the Consistent See H-1 discussion above. The project would exceed the City’s affordable housing requirement by providing a total of 12 BMR units where nine (9) BMR units are required. The project proposes nine (9) required BMR units (5 BMRs at the very low-income household level and 4 BMRs at the low-income household level) plus three (3) additional voluntary BMR units at the moderate-income household level for a fixed 10-year period. Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-11 BMR units affordable to low income households at 50 - 80% of median income, with the remainder affordable to moderate income households at 80-120% of median income. Calculation of In-lieu Fee. Continue to provide a calculation for in-lieu fees for affordable housing. For fractions of affordable units, if 0.5 or more of a unit, the developer shall construct the next higher whole number of affordable units, and if less than 0.5 of a unit, the developer shall provide an in-lieu fee. NEIGHBORHOODS ELEMENT NH-3. Housing Mix. Encourage a housing mix with a broad range of affordability, character, and sizes. In areas with a predominance of rental housing, encourage ownership units to increase the variety of housing types. Consistent See H-1 discussion above. The project proposes to develop 120 new apartment units in a wide variety of size configurations: • 33, studio units, 342 – 539 sq. ft. in size. • 44, 1-bedroom units, 525 – 795 sq. ft. in size. • 43, 2-bedroom units, 520 – 1,068 sq. ft. in size. NH-15. Downtown Vision. Continue to implement Our Vision of Downtown San Rafael. Consistent See LU-12 discussion above. The proposed project is located should be consistent with as many of the applicable policies in the adopted Our Vision of Downtown San Rafael; Second/Third Corridor Vision , including: • Capitalize on the proximity to the freeway, Transportation Center and vitality of the Lindaro District, in the area east of B Street with housing in mixed use projects with ground -floor retail uses to support the needs of the residents and surrounding office uses. • Make Second and Third Street more attractive and safer for pedestrians by: A) Planting for street trees; B) creating a visual buffer between pedestrians and the street; and C) Reducing the number of driveways which interrupt sidewalks. • Encourage safe and efficient auto transportation to and through the Downtown on Second and Third Streets and respect the needs of pedestrians. Second and Third Streets are the county access streets. • Vary building heights and densities, concentrating the most intense development towards the east, closest to the freeway and Transportation Center, including building heights of two to five stories Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-12 and higher densities east of B Street and heights of one to three stories and lower densities west of B Street. The project would be consistent with the applicable policies in the Downtown Vision by incorporating the following attributes: 1) providing multi-family housing in close proximity to the SMART train and Transit Center, 2) incorporating a mix of retail and housing in the Downtown core, 3) enhancing the pedestrian experience along Tamalpais Ave by widening the sidewalks and 4) providing a retail experience at the corner of Third St/Tamalpais Ave. Furthermore, the project would enhance the streetscape by adding new street trees and raised Corten streel planters along all three frontages to help create a pedestrian scale. Driveway widths have been reduced to the minimum (20’) and the number of driveways servicing the project have been limited to one (1) on both the Tamalpais and Lincoln Ave frontages. While the proposed 6-story building height is greater than that encouraged for the site by the vision document, the project includes a request for height bonus as a concession under the State Density Bonus law. NH-16. Economic Success. Substantially expand Downtown’s economic success and increase opportunities for retail, office and residential development Consistent See H-1 and H-14 discussions above. The project proposes to construct a total of 120 new residential in the Downtown, adjacent to the SMART downtown station and in close proximity to the Bettini Transit Center (the exact location of which is unknown at this time). Future residents are anticipated to frequent existing and future businesses in the Downtown and help achieve the City’s goal of ‘alive-after-five’ by activating the Downtown in the evenings and on weekends. NH-17. Competing Concerns. In reviewing and making decisions on projects, there are competing economic, housing, environmental and design concerns that must be balanced. No one factor should dominate; however, economic and housing development are high priorities to the health of Downtown. Consistent See LU-8, H-1 and H-14 discussions above. The project proposes to construct a total of 120 new residential apartment units on the project site, 12 of which are proposed to be ‘affordable’ or BMR units. The project proposes a six-story scale and mass similar to that of the existing BioMarin campus located south of the project site. The project site is uniquely located in the Downtown, across from the SMART downtown station and in close proximity to the relocated Bettini Transit Center (whose exact location has not been determined at this time). Future residents are anticipated to frequent existing and future businesses in the Downtown and help achieve the City’s goal of ‘alive-after-five’ by activating the Downtown in the evenings and on weekends. NH-22. Housing Downtown. Create a popular and attractive residential environment that contributes to the activity and sense of community Downtown. This includes: a. Preserving and upgrading existing units, b. Providing incentives to encourage new private sector construction of housing, particularly Consistent See LU-2, LU-8, H-14 and NH-16 discussions above. The project proposes to construct a total of 120 new residential apartment units within the Downtown, across from the SMART downtown station and in close proximity to the relocated Bettini Transit Center (whose exact location has not been determined at this time). By meeting the City’s affordable housing requirement, the project is requesting a density bonus and two (2) concession/incentives under the State Density Bonus law. One of the requested concessions is for a height bonus to allow for the proposed 73’ building height, where a maximum of 66’ is allowed under the Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-13 affordable housing, live/work units, and single room occupancy (SRO) units, c. Designing units that take advantage of Downtown's views, proximity to shopping and services, and transit, and d. Implementing zoning standards that reflect Downtown’s urban character. General Plan and Zoning Ordinance. The other requested concession is for a density bonus to allow the proposed 120 units where a maximum of 61 units is allowed under the General Plan , Zoning Ordinance and the minimum 35% State density bonus. NH-25. Pedestrian Comfort and Safety. Make Downtown's street systems more comfortable and safer for pedestrians by: • Balancing between the needs of pedestrians and the desire for efficient traffic flow, • Slowing traffic where necessary, • Providing two-way traffic where feasible, • Making pedestrian crossings direct and safe, • Establishing pedestrian environments unique to each District, • Improving and/or expanding sidewalks, street trees, landscaping and other sidewalk amenities, • Increasing visibility to storefronts and businesses, • Seeking innovative solutions and ideas. Consistent See NH-15 discussions above. Tamalpais Ave. is identified as a ‘gateway’ to the Downtown with excellent visibility from all transportation modes (pedestrian, bicycle and transit) and the transit center. The project helps activate the Tamalpais Ave street front by providing a small (969 sq. ft.) ground -level commercial retail space at the corner of Tamalpais Ave. and Third St. The project helps create a more ‘pedestrian street’ by widening the sidewalk along Tamalpais Ave., minimizing driveway cuts to a single driveway with a 20’ width and providing ample street tree pockets with grates and raised Corten streel planters. NH-29. Downtown Design. New and remodeled buildings must contribute to Downtown’s hometown feel. Design elements that enhance Downtown’s identity and complement the existing attractive environment are encouraged and may be required for locations with high visibility or for compatibility with historic structures. Design considerations include: • Varied and distinctive building designs, • Sensitive treatment of historic resources, • Generous landscaping to accent buildings, • Appropriate materials and construction, and • Site design and streetscape continuity. NH-29a. Implement Downtown Design Guidelines. Consistent See H-2 discussions above. The project site is located within the “Second/Third Corridor and Environs” of Downtown where the following San Rafael Downtown Design Guidelines apply: Second and Third Streets are to be attractive, landscaped major transportation corridors. While increased pedestrian safety and comfort is desired on Second and Third, greater pedestrian use of the cros s streets is encouraged. The project site is located within the boundaries of the Second/Third and Environs area of the Downtown, where the following specific design guidelines apply: • To provide visual interest, long and monotonous walls should be avoided. • Building walls should be articulated; • To create a boulevard effect along Second and Third Streets, varied landscape setbacks are appropriate; • Additional high-canopy, traffic-tolerant street trees are strongly encouraged; • Where possible, residential buildings in this area should orient to the more pedestrian-friendly Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-14 Implement the Downtown Design Guidelines through the design review process. side street; and • Driveway cuts and widths should be minimized to prevent vehicular conflicts. The project proposes a contemporary design, similar to the nearby BioMarin campus buildings, though with unique façade treatments (brick with Corten steel planters at the ground level and a mixture of stucco and vertical and horizontal fiber cement board siding at the upper levels), greater articulation, stepping back the upper stories and a more ‘residential’ window proportion. The proposed 6-story scale was reviewed by both the Board and the Planning Commission during Conceptual Design Review and supported. The project design has been revised to provide equal, high-quality design attention to all four building elevations, including the rear elevation which is shared with 770 Second St. Better vertical and horizontal articulation and stepbacks of the upper stories have been incorporate in the revised project design. In addition, previously proposed upper-story projections or encroachments over the sidewalk have been eliminated. Extensive landscaping in the form of street trees and Corten steel raise planter along all three street fronts is proposed to help create a pedestrian scale. The project proposes to orient pedestrian activity through the lobby area both through the main entry on Third St and at the northwest corner of Third St./Lincoln Ave. At their subsequent study session on the revised project, the Planning Commission more specifically indicated their support for the proposed height bonuses if greater affordability could be provided. In response to the Planning Commission’s request, the current project proposes a total of 12 affordable or BMR units. This proposed affordability includes 9 BMR uni ts (5 BMR units at the very low- income household level and 4 BMR units at the low-income household level) required by State Density Bonus law plus and an additional three (3) BMR units voluntarily provided at the moderate -income household levels for a fixed 10-year period. NH-30. Pedestrian Environments. Enhance Downtown’s streets by establishing pedestrian environments appropriate to each District. These environments could include the following: • Well-designed window displays and views into retail stores, • Outdoor businesses and street vendors, • Signs that are easy for pedestrians to see and read, • Sun-filled outdoor courtyards, plazas and seating areas, • Attractive street furniture and lighting, • Information kiosks and public art. Consistent See NH-25 discussion above. NH-31. Ground Floor Designed for Pedestrians. Ensure that all buildings, regardless of height, are comfortable for Consistent See NH-15 and NH-29 discussions above. The project proposes to help create a pedestrian scale through Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-15 people at the street level. This includes: • Relating wall and window heights to the height of people, • Use of architectural elements to create visual interest, • Adding landscaping and insets and alcoves for pedestrian interest, and, • Stepping upper stories back as building height increases. the following design measures: • The project proposes to provide a small (969 sq. ft.) ground -level commercial retail space at the corner of Tamalpais Ave. and Third St. with entrances along both street fronts; • The project proposes a recessed main lobby entrance along the Third St. frontage; • The project proposes large storefront windows along all three frontages; • The project proposes to minimize driveway cuts to a single 20’-wide driveway along both Tamalpais and Lincoln Ave. frontages; • The project proposes extensive ground-level landscaping in the form of street trees and Corten steel raise planter along all three street fronts; and • The project proposes a ‘base, middle and top’ design strategy, with a brick podium level, stucco mid-levels which are articulated and recessed, and a combination of stucco and fiber -cement siding boards (oriented horizontal and vertical) upper-floors which have greater articulation and further setbacks. NH-37. Hetherton Office District Design Considerations. ____________________ c. Hetherton Design. Encourage projects of high quality and varied design with landmark features that enhance the District's gateway image. Examples include: • Building design emphasizing the gateway character and complementing the district’s transitional treatment by incorporating accent elements, public art and other feature items, • Upper stories stepped back, • Ground floor areas have a pedestrian scale, • Retail uses opening onto public areas, • Useable outdoor spaces, courtyards and arcades that are landscaped, in sunny locations and protected from freeway noise. ____________________ e. Height. Building heights of three to five stories are allowed west of the rail transitway, and typically up to three stories east of the rail transitway. Consistent See NH-15, NH-29 and NH-31 discussions above. Tamalpais Ave. is identified as a ‘gateway’ to the Downtown with excellent visibility from all transportation modes (pedestrian, bicycle and transit) an d the transit center. The project activates the Tamalpais Ave street front by providing a small (969 sq. ft.) ground-level commercial retail space at the corner of Tamalpais Ave. and Third St. The project supports Tamalpais Ave. as a ‘pedestrian street’ by minimizing driveway cuts to a single driveway with a 20’ width and providing ample street tree pockets with grates. Larger and taller buildings, like the project, are anticipated along the Second and Third St. corridors to create a ‘boulevard’ setting. A ‘base, middle and top’ design strategy, similar to the project design, is encouraged though not required. The height and bulk of the project is mitigated by stepbacks, articulation and use of varied exterior materials. While the proposed 6-story building height is greater than that which is encouraged for the site by Hetherton Design Guidelines, the project includes a request for height bonus as a concession under the State Density Bonus law. The applicant has submitted a financial pro forma in support of the proposed height concession which has been reviewed by the City’s 3rd party economic consultant who confirms the financial pro forma provides verified economic data that suggests the proposed 6 -story/73’building height is needed to make the project financially feasible. The project proposes 12,555 sq. ft. of landscaped common outdoor space, including 4,528 sq. ft. of landscaped area on the podium (2nd floor)-level between a central courtyard and common outdoor deck areas along the front (Third St. elevation) and rear (adjacent to the paint store located at 770 Second St.) building elevations and a 5,317 sq. ft. landscaped rooftop amenities area, Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-16 COMMUNITY DESIGN ELEMENT CD-1. City Image. Reinforce the City’s positive and distinctive image by recognizing the natural features of the City, protecting historic resources, and by strengthening the positive qualities of the City's focal points, gateways, corridors and neighborhoods. CD-1d. Landscape Improvement. Recognize that landscaping is a critical design component. Encourage maximum use of available landscape area to create visual interest and foster sense of the natural environment in new and existing developments. Encourage the use of a variety of site appropriate plant materials. Consistent See NH-37 discussion above. The project proposes 12,555 sq. ft. (46%) of site landscaping, where a minimum 10% (2,737 sq. ft.) is required. New street trees are proposed along all three building frontages on the ground-floor. A combined 4,528 sq. ft. of landscaped area is proposed on the podium (2nd floor)- level between a central courtyard and common outdoor deck areas along the front (Third St. elevation) and rear (adjacent to the paint store located at 770 Second St.) building elevations. A landscaped roofto p amenities area, 5,317 sq. ft. in size, is also proposed. In addition, the project proposes raised Corten steel planters along the ground-floor of the Third St. frontage. On May 7, 2019, the Board reviewed the formal project for site and building design and unanimously (4-0-2 vote; Planning Commission Liaison Davidson) recommended approval of the site and building design with enhanced “Gateway Corner” (Third St. and Tamalpais Ave.) façade treatments (unique materials and colors), including the proposed site landscaping. CD-2. Neighborhood Identity. Recognize and promote the unique character and integrity of the city's residential neighborhoods and Downtown. Strengthen the "hometown" image of San Rafael by: • Maintaining the urban, historic, and pedestrian character of the Downtown; • Preserving and enhancing the scale and landscaped character of the City's residential neighborhoods; • Improving the appearance and function of commercial areas; and • Allowing limited commercial uses in residential neighborhoods that serve local residents and create neighborhood-gathering places. Consistent See CD-1, NH-15 and NH-31 discussions above. CD-3. Neighborhoods. Recognize, preserve and enhance the positive qualities that give neighborhoods their unique identities, while also allowing flexibility for innovative design. Develop programs to encourage and respect the context and scale of existing neighborhoods. Consistent See CD-1, NH-15 and NH-31 discussions above. CD-5. Views. Respect and enhance to the greatest extent Consistent Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-17 possible, views of the Bay and its islands, Bay wetlands, St. Raphael’s church bell tower, Canalfront, marinas, Mt. Tamalpais, Marin Civic Center and hills and ridgelines from public streets, parks and publicly accessible pathways. Photo simulations were created by the applicant and submitted within the project plans, which indicate minor view impacts of the surrounding hillsides west and north of the project site. These potential view impacts would be similar to those resulting from development of the adjacent BioMarin campus. CD-7. Downtown and Marin Civic Center. Build upon the character of these areas by controlling land uses to clearly distinguish their boundaries; by recognizing Mission San Rafael Arcangel and St. Raphael Church, Marin Civic Center, and other buildings that help define the City’s character, and requiring that these and other architectural characteristics and land uses that give these areas their identity are strengthened. Consistent See CD-5 discussion above. The project would create limited view impacts of the Puerto Suello Hill, located north of the project site, and the hillside above Gerstle Park, located west of the project site, from viewsheds along westbound Third St, eastbound and westbound Second St., northbound Tamalpais Ave., northbound Lincoln Ave. and southbound U.S. Highway 101. CD-8. Gateways. Provide and maintain distinctive gateways to identify City entryways. Consistent See NH-15, NH-31 and NH-37 discussions above. Tamalpais Ave. is identified as a ‘gateway’ to the Downtown with excellent visibility from all transportation modes (pedestrian, bicycle and transit). The project proposes to help create a pedestrian scale through a variety of design measures, including ground- level landscaping, storefront windows and a neighborhood-serving commercial space, wide sidewalks, reduced driveway widths, and a ‘base, middle and top’ architecture, with a brick façade on the ground- level which is distinct from the stucco mid-levels and the combination of stucco and fiber-cement siding boards (oriented horizontal and vertical) upper-floors. CD-9. Transportation Corridors. Provide and maintain distinctive gateways to identify City entryways. Consistent See CD-8 discussion above. CD-11. Multifamily Design Guidelines. Recognize, preserve and enhance the design elements that ensure multifamily housing is visually and functionally compatible with other buildings in the neighborhood. Develop design guidelines to. ensure that new development fits within and improves the character defining elements of neighborhoods. Consistent See H-2 and NH-29 discussions above. The project proposes a bulk and mass similar to the adjacent BioMarin campus located south of the project site. While the BioMarin campus buildings and structures are 3-4 stories, they are 54 – 76 ft. in height. Of the seven (7) buildings and structures currently existing within the BioMarin campus, three (3) are taller than the proposed height of the project (73’). CD-14. Recreational Areas. In multifamily development, Consistent Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-18 require private outdoor areas and on-site common spaces for low and medium densities. In high density and mixed - use development, private and/or common outdoor spaces are encouraged. Common spaces may include recreation facilities, gathering spaces, and site amenities such as picnicking and play areas. Useable outdoor area is encouraged, though not required, in residential development as part of a mixed -use project. The project proposes 2,738 combined sq. ft. of private balconies to select residential units on the upper floors (floor 2 through 6). The project also proposes 4,353 combined sq. ft. of common outdoor area on the podium (2nd floor) level, within a central landscaped courtyard and along the front and rear elevations. The project proposes an additional 5,317 sq. ft. of common outdoor area through a landscaped roof deck. Overall, the project proposes 12,408 sq. ft. of private and common outdoor recreational area or an average of 103.4 sq. ft. of recreational area per unit. CD-15. Participation in Project Review. Provide for public involvement in the review of new development, renovations, and public projects with the following • Design guidelines and other information relevant to the project as described in the Community Design Element that would be used by residents, designers, project developers, City staff, and City decision makers; • Distribution of the procedures of the development process that include the following: submittal information, timelines for public review, and public notice requirements; • Standardized thresholds that state when design review of projects is required (e.g. residential conversions, second - story additions); and • Effective public participation in the review process. Consistent The proposed project has provided for effective citizen participation in decision-making, given that; the City has provided opportunities for public involvement in the review of the project through the referral of the application to the appropriate neighborhood groups (Downtown BID, Federation of San Rafael Neighborhoods, Gerstle Park Neighborhood Assoc., Lincoln-San Rafael Hill Neighborhood Assoc., Bret Harte Community Assoc., Montecito Area Residents Assoc.) and the notice and meeting/hearing of the prior conceptual review by the Board, the Planning Commission study session, the Board’s recent (May 7, 2019) review of the formal project design and this Planning Commission hearing on the formal project submittal in compliance with Chapter 29 of the Zoning Ordinance (Public Notice). Notice of all hearing were mailed to all property owners and occupants within a 300 -foot radius of the site, and the appropriate neighborhood groups, a minimum of 15 calendar days prior to the meetings or hearing, and notice was posted on the project site, along all three (3) frontages (Third St, Lincoln Ave. and Tamalpais Ave.), a minimum of 15 calendar days prior to the meeting or hearing. Public comments received by staff on the project are evenly mixed; some in support of the project proposing downtown housing and others in opposition to the project design, bulk/mass, height, and perceived parking and traffic impacts . Public comments received through the conceptual review, during the previous proposed design, are attached as Exhibit 8. Public comments received on the project, since formal project review, with a revised improved design, are attached as Exhibit 9. CD-18. Landscaping. Recognize the unique contribution provided by landscaping and make it a significant component of all site design. Consistent See CD-1 and CD-14 discussions above. CD-19. Lighting. Allow adequate site lighting for safety purposes while controlling excessive light spillover and glare. Consistent with Conditions The project proposes exterior lighting along all three (3) street fronts. LED sconce -type light fixtures are proposed to provide accent lighting for brick pillars at ground level along all three street frontages. Cut sheets for the light fixtures indicate these would use a 10-watt / 3,000 kelvin light source which would create a ‘warm’ light appearance. The light fixtures are proposed to be bronze finished with vertical slats which would match the perforated vertical slat design of the balcony railing and sunshade detailing. A Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-19 condition of approval would be included establishing a 90-day lighting review period at final inspection/occupancy where adjustments in lighting may be required by staff to reduce off-site glare, if necessary. CIRCULATION ELEMENT C-5. Traffic Level of Service Standards. a. Intersection LOS. In order to ensure an effective roadway network, maintain adequate traffic levels of service (LOS) consistent with standards for signalized intersections in the A.M. and P.M. peak hours as shown below, except as provided for under (B) Arteria l LOS. Consistent with conditions The City’s Traffic Engineer has reviewed the project and evaluated its traffic impacts against the City’s level of service standards. A Transportation Impact Analysis report (Fehr & Peers Transportation Consultants, revision dated January 14, 2019) originally submitted for the project was revised to expand the study area and to modify the methodology used in the analysis. The results of the updated trip generation indicate that, based on traffic counts of existing land use trips, and with deductions applied for ‘walk, bike and transit’ trips due to the site’s proximity to the Downtown, the SMART station and the transit center, the project would result in 33 net new AM peak hour trips (7 - 9am weekdays) and 26 PM net new peak hour trips (4-6pm weekdays). The Transportation Impact Analysis report indicates surrounding intersections and arterials would continue to operate (existing plus project volumes) acceptably per the City’s LOS (Level of Service) standards in the General Plan. The results of the Transportation Impact Analysis report have been confirmed by the City’s Traffic Engineer. Staff finds the proposed density (120 units) would result in negligible traffic impacts which are off-set by the payment of traffic mitigation fees on the 59 new peak hour trips anticipated to result from the project, which would be a condition of approval. The payment of traffic mitigation fees would be a condition of approval and are intended to help fund the project’s fair share of local circulation improvement projects by the City. Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-20 C-7. Circulation Improvement Funding. Take a strong advocacy role in securing funding for planned circulation improvements. Continue to seek comprehensive funding that includes Federal, State, County, and Redevelopment funding, Local Traffic Mitigation Fees, and Assessment Districts. The local development projects’ share of responsibility to fund improvements is based on: C-7a. Traffic Mitigation Fees. Continue to implement and periodically update the City’s Traffic Mitigation Program. C-7b. Circulation Improvements. Seek funding for and construct circulation improvements needed for safety, to improve circulation, or to maintain traffic level of service. Consistent with conditions See C-5 discussion above. CD-26. Bicycle Plan Implementation. Make bicycling and walking an integral part of daily life in San Rafael by implementing the San Rafael’s Bicycle and Pedestrian Master Plan. Consistent The City’s Traffic Engineer reviewed the project for compliance with the goals and programs identified in the City’s 2018 Bicycle and Pedestrian Master Plan Update 2018 . The Tamalpais Avenue Feasibility Study is currently ongoing with the goal to convert West Tamalpais Ave. into a one-way street in the southbound direction; create a Class IV protected bikeway between West Tamalpais and SMART right-of-way; create improved bicycle and pedestrian crossings at intersections and connection to the existing Class I multi -use path to Hetherton St. Alternatively, a continuation of the Class I multi-use path is being considered as part of the SF Bay Trail alignment. . CD-27. Pedestrian Plan Implementation. Promote walking as the transportation mode of choice for short trips by implementing the pedestrian element of the City’s Bicycle and Pedestrian Master Plan. In addition to policies and programs outlined in the Bicycle and Pedestrian Plan, provide support for the following programs. Consistent See C-26 discussion above. INFRASTRUCTURE ELEMENT I-2. Adequacy of City Infrastructure and Services. Assure that development can be adequately served by the Consistent All service providers, including PG&E, Marin Sanitary Service, Marin Municipal Water District, San Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-21 City’s infrastructure and that new facilities are well planned and well designed. Rafael Sanitation District, Central Marin Sanitation Agency, and the City Engineer, have review the project and indicated that adequate infrastructure capacity exists for the project. SUSTAINABILITY ELEMENT SU-5. Reduce Use of Non-renewable Resources Reduce dependency on non-renewable resources. _______________ SU-5d Water Efficiency Programs. Develop and implement water efficiency and conservation programs to achieve a 30% reduction in water use by 2020, including water efficient landscape regulations, PACE financing, water audits, upgrades upon resale, education and outreach. Make available to property managers, designers and homeowners’ information about water- conserving landscaping and water-recycling methods and resources. Consistent The project is subject to a condition requiring compliance with the most recent water conservation ordinance adopted by Marin Municipal Water District (MMWD). Prior the building permit issuance, MMWD is required to review and approve the proposed landscape and irrigation plans and provide the applicant with a letter of approval or an approved -stamped plan set either of which shall be submitted with the building permit. SU-7. New and Existing Trees. Plant new and retain existing trees to maximize energy conservation and carbon sequestration benefits. Consistent The landscape plan for the project proposes new street trees and grates along all three (3) frontages. In addition, new trees are proposed within common areas for the central court yard on the podium (2nd floor) level and on the roof deck. The landscape plan provides no details on the specific trees along the street or within these common areas of the project site. Eight (8) existing street trees (3 along the Tamalpais Ave. frontage, 1 along the Third St. frontage and 4 along he Lincoln Ave. frontage) and four (4) existing trees within the project site are proposed to be removed. CULTURE AND ARTS ELEMENT CA-15. Protection of Archaeological Resources. Recognize the importance of protecting significant archaeological resources by: • Identifying, when possible, archaeological resources and potential impacts on such resources. Consistent with conditions The project site is identified as having a “medium” archaeological sensitivity rating, pursuant to the City’s adoptive City of San Rafael Archaeological Sensitivity map. City Council Ordinance No. 1772 and Resolution No. 10980 prescribes referral of the project to the Northwest Information Center at Sonoma State University (NWIC) for review. NWIC concluded that, while finding no record of cultural resource study on the project site, the possibility of unrecorded cultural resources exists. NWIC recommends that, Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-22 • Providing information and direction to property owners in order to make them aware of these resources. • Implementing measures to preserve and protect archaeological resources. CA-15a. Archeological Resources Ordinance. Continue to implement the existing Archeological Resources Ordinance. prior to demolition or other ground disturbance, a qualified archaeologist conduct further archival research and field study to identify archaeological resources, including a good faith effort to identify archaeological deposits that may show no indication on the surface. This recommendation has been incorporated as a condition of approval. PARK AND RECREATION ELEMENT PR-10. Onsite Recreation Facilities. Require onsite recreation facilities in new multifamily residential projects and encourage construction of onsite recreation facilities in existing multifamily residential projects, where appropriate. Consistent See CD-14 discussion above. In addition to the common recreational areas proposed by the project on the podium (2nd floor) level and roof deck, the project plans propose both a 593 sq. ft. community room and a 279 sq. ft. gym on the podium level. PR-24. Contributions by Rental Residential Development. Explore the feasibility of requiring contributions from rental residential development towards park improvements. PR-24a. Rental Residential Contributions. Evaluate the feasibility of adopting an ordinance to require developers of apartments to contribute to park improvements. Consistent Currently, only projects proposing new ownership or condominium units are required to pay Parkland Dedication Fees (currently $1,967.98 per unit). Currently, no ordinance has been adopted requiring development of rental or apartment units to pay impact fees for new parks or park improvements. SAFETY ELEMENT S-1. Location of Future Development. Permit development only in those areas where potential danger to the health, safety and welfare of the residents of the community can be adequately mitigated. Consistent Geoseismic analysis have been evaluated through the City’s Geotechnical Review process and found that the project would not pose potential danger to the health, safety and welfare of the community. S-4. Geotechnical Review. Continue to require geotechnical investigations for development proposals as Consistent A Geotechnical Investigation Report was prepared and submitted with the project application. After review Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-23 set forth in the City's Geotechnical Review Matrix (Appendix F). Such studies should determine the actual extent of geotechnical hazards, optimum design for structures, the advisability of special structural requirements, and the feasibility and desirability of a proposed facility in a specified location. by the City Engineer and Chief Building Official, it was found to meet the requirements set forth in the Geotechnical Review Matrix and consistent with the City’s safety policies and standard engineering practices. S-6. Seismic Safety of New Buildings. Design and construct all new buildings to resist stresses produced by earthquakes. The minimum level of seismic design shall be in accordance with the most recently adopted building code as required by State law. Consistent with conditions The project would entail all new construction and would be constructed in accordance with the most current building and seismic codes as required by the City’s Municipal Code. S-17. Flood Protection of New Development. Design new development within the bay mud areas to minimum floor elevation that provides protection from potential impacts of flooding during the “100-year” flood. The final floor elevation (elevation of the first floor at completion of construction) shall account for the ultimate settlement of the site due to consolidation of the bay mud from existing and new loads, taking into account soils conditions and the type of structure proposed. Design for settlement over a 50-year period is typically considered sufficient. Consistent The site is currently located in FEMA Zone AH, a 100-year flood zone area. The Public Works Department recommends the project provide a flood elevation of 12’. By meeting the affordable housing requirement (20% or 9 BMR units), the project requests two (2) concessions under the State Density Bonus law. One of the requested concessions is for a 7’ height bonus above the maximum 66’ allowed by the Zoning Ordinance (54’ base height plus and additional 12’ height bonus for meeting the affordable housing requirement). This request for additional height bonus under the State Density Bonus law is based, partially, on meeting the FEMA flood elevation requirements (Other justifications for the height bonus request include raising the garage plate height 3.5’, from 18.5’ to 22’, to accommodate the mechanical parking lift system and to increase the plate height of each residential floor one -half foot (½’), from 9’ to 9.5’, resulting in another 2.5’ increase in the overall height). S-25. Regional Water Quality Control Board (RWQCB) Requirements. Continue to work through the Marin County Stormwater Pollution Prevention Program (MCSTPPP) to implement appropriate Watershed Management plans as dictated in the RWQCB general National Pollutant Discharge Elimination System permit for Marin County and the local stormwater plan. Consistent with conditions The City Engineer has reviewed the proposed project, including Stormwater Control Plan, and determined it preliminarily implements the Stormwater Pollution Prevention Program standards and regulations. As designed, the proposed project includes measures likely to reduce stormwater run-off consistent with the standards established by the RWQCB. S-32. Safety Review of Development Projects. Require crime prevention and fire prevention techniques in new development, including adequate access for emergency vehicles. Consistent The San Rafael Fire Department, Fire Prevention Bureau, and the San Rafael Police Department have both reviewed the project plans and recommended modifications to improve fire prevention and safe design which would not affect the current project design being reviewed by the Commission though would Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-24 become conditions of approval. NOISE ELEMENT N-1. Noise Impacts on New Development. Protect people in new development from excessive noise by applying noise standards in land use decisions. Apply the Land Use Compatibility Standards (see Exhibit 31) to the siting of new uses in existing noise environments. These standards identify the acceptability of a project based on noise exposure. If a project exceeds the standards in Exhibit 31, an acoustical analysis shall be required to identify noise impacts and potential noise mitigations. Mitigation should include the research and use of state-of-the-art abating materials and technology. N-1a. Acoustical Studies. Require acoustical studies for all new residential projects within the projected Ldn 60 dB noise contours (see Exhibit 31) so that noise mitigation measures can be incorporated into project design. Acoustical studies shall identify noise sources and contain a discussion of the existing and future noise exposure and the mitigation measures that may be used to achieve the appropriate outdoor and indoor noise standards. Consistent with conditions A Noise Study (RGD Acoustics; dated May 25, 2018) was prepared for the project and determined the noise impacts to the project would be ‘conditional acceptable’ and recommended the following noise reduction and insulation features be included in the project design: 1) The proposed solid 4’-tall parapet sound wall increase in height to 6’ around the roof deck; 2) sound-rated windows and specifically constructed exterior wall assemblies will be required at the time of building permit submittal (i.e., most windows will require an STC (Sound Transmission Class) 36 rating, some corner units will require windows with higher ratings, balcony doors will need to be sound -rated, and some wall assemblies with siding will require additional layers of gypsum); 3) All construction equipment shall operate with maintained mufflers and other state required noise attenuation devices; 4) Property owners and occupants within a 250 ft. radius of the project site shall receive notice 15 days prior commencement of construction of each phase, regarding the construction schedule of the project, subject to review and approval by Planning staff. These notices shall indicate dates and duration o f construction activities and provide a contact name and telephone number to inquire about the construction schedule and register complaints;5) The project shall designate a Noise Disturbance Coordinator (NDC) to be present on-site during all grading and construction activities, who name and contact details shall be included in all notices. The NDC shall be responsible for responding to all complaints about grading and construction noise. When a compliant is received, the NDC shall notify Planning staff within 24-hours of the complaint, determine the cause of the complaint and implement reasonable measures to resolve the complaint, as deemed acceptable by Planning staff. In addition, the name and contact information of the NDC shall be posted on the site and legible from a distance of 50 ft.; 6) Noise reduction methods shall be utilized during all grading and construction activities where feasible, including shutting off idling equipment, installing temporary acoustic barriers around stationary construction noise sources, maximizing the distance between construction equipment staging areas and occupied residential areas, and electric air compressors and similar power tools; 7) Grading and construction haul truck routes shall be designated to avoid sensitive re ceptors, such as residences and convalescent homes, to the greatest extent feasible; and 8) During construction activities, stationary construction equipment shall be located such that emitted noise is directed away from sensitive receptors. These recommendations by the Noise Study will be incorporated as conditions of approval. N-5. Traffic Noise from New Development. Minimize noise impacts of increased off-site traffic caused by new development. Where the exterior Ldn is 65 dB or greater at Consistent Due to the location of the project site in the Downtown, adjacent to the SMART downtown station and in close proximity to the relocated Bettini Transit Center (whose exact location has not been determined at Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-25 a residential building or outdoor use area and a plan, program, or project increases traffic noise levels by more than Ldn 3 dB, reasonable noise mitigation measures shall be included in the plan, program or project. this time), noise impacts of increased traffic caused by the project is anticipated to be negligible. AIR AND WATER QUALITY ELEMENT AW-1. State and Federal Standards. Continue to comply and strive to exceed state and federal standards for air quality for the benefit of the Bay Area. Consistent An Air Quality Analysis and Health Risk Assessment (Ramboll; dated January 19, 2019) was prepared and submitted, determining no significant air quality impacts from construction and operation emissions would result from the project. Based on the size of the project and Bay Area Air Quality Management District (BAAQMD) screening methods, both construction and operational mass emissions are estimated to be below BAAQMD CEQA thresholds. Health risk imp -acts from both construction and operation are expected to be less than BAAQMD CEQA thresholds based on a conservative screening assessment for operations and dispersion modeling and refined risk analysis for construction. This analysis also shows that areas of the project site will not experience excess lifetime cancer risks, chronic hazard indices , and PM 2.5 (particulate matter of aerodynamic diameter of 2.5 microns or less) concentrations above cumulative threshold of significance. AW-7. Local, State and Federal Standards. Continue to comply with local, state and federal standards for water quality. Consistent The project would be required to comply with the City’s Stormwater Pollution Prevention standards which are derived from the Regional Water Quality Board. The drainage plan is designed to be consistent with the stormwater pollution standards by treating roof rainwater runoff on-site in landscape bioswale filtration areas, located through the project, before it enters into the City’s storm drain system. AW-8. Reduce Pollution from Urban Runoff. Address non-point source pollution and protect receiving waters from pollutants discharged to the storm drain system by requiring Best Management Practices quality. • Support alternatives to impervious surfaces in new development, redevelopment or public improvement projects to reduce urban runoff into storm drain system, creeks and the Bay. • Require that site designs work with the natural topography and drainages to the extent practicable to Consistent See AW-7 discussion above. Exhibit 3 TABLE ANALYZING PROJECT CONSISTENCY WITH SAN RAFAEL GENERAL PLAN 2020 New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: General Plan 2020 Consistency Table Exhibit: 3-26 reduce the amount of grading necessary and limit disturbance to natural water bodies and natural drainage systems. • Where feasible, use vegetation to absorb and filter fertilizers, pesticides and other pollutants. Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-1 CHAPTER 5 – COMMERCIAL AND OFFICE DISTRICTS; SECOND/THIRD MIXED USE EAST (2/3 MUE) DISTRICT 14.05.010 - Specific Purposes. In addition to the general purposes listed in Section 14.01.030, the specific purposes of the commercial and office zoning districts include the following: ---------------- F. To promote San Rafael's downtown area as a viable commercial and financial center, and as an urban center with a mixture of civic, social, entertainment, cultural and residential use s; --------------- H. To provide housing opportunities by encouraging a variety of housing in mixed -use districts. --------------- R. Second/Third Mixed Use District East (2/3 MUE): 1. Existing Character. The Second/Third mixed use district east is part of a major transpo rtation corridor bordering the southern edge of downtown, from Highway 101 to Brooks Street. The district is comprised of a "one-way pair" of Second and Third Streets carrying traffic through downtown. There is a mix of uses, including large and small-scale offices and retail shops, and residential uses. This area is highly visible to the Marin community, is adjacent to the planned vitality of the Lindaro office district and provides many opportunities to enhance the overall impression of downtown . 2. Allo wed Uses. The Second/Third mixed use district east is to become more attractive, efficient and better utilized with a mix of compatible uses serving local, community and regional needs. Because of the district's proximity to Highway 101 and the Transportation Center, this area is suitable for office and office - support retail and service uses. Limited auto -serving retail stores Consistent The project proposes to redevelop two adjacent in-fill parcels, currently served by City infrastructure and services. The smaller parcel (703 Third St.) is located at the southwest corner of Third St. and Tamalpais Ave. while the larger parcel (723 Third St. / 898 Lincoln Ave.) is located at the southeast corner of Third St. and Lincoln Ave. Both parcels are located with Second/Third St. Mixed-Use East (2/3 MUE) District zone, a Downtown commercial zoning district. The project proposes to demolish approximately 15,000 sq. ft. of combined commercial space within two, 1-2-story buildings and a surface parking lot and construct a new, six-story, 73-tall mixed-use building with 120 apartment units above 121 garage parking spaces, of which 109 parking spaces will be provided by mechanical parking lifts. The project is required to provide nine (9) affordable (‘below-market-rate or BMR) units and, due to a request made at the Planning Commission study session for more affordability in order to support height and density bonuses, proposes to voluntarily provide an additional three (3) BMR units. The larger (723 Third St./898 Lincoln Ave.) of the two parcels within the project site is listed in the San Rafael General Plan 2020 (2015-2023 Housing Element; Appendix B – Background Report) as a “housing opportunity site” or as an underutilized mixed -use site with the potential to create a large number of affordable units. The project site is uniquely located in the Downtown, across from the SMART downtown station and in close proximity of the relocated Bettini Transit Center (whose exact location has not been determined at this time). Future residents are anticipated to frequent existing and future businesses in the Downtown and help achieve the City’s goal of ‘alive -after-five’ by helping to activate the Downtown in the evenings and on weekends. The project proposes to develop 120 new apartment units in a wide variety of size configurations: • 33, studio units, 342 – 539 sq. ft. in size. • 44, 1-bedroom units, 525 – 795 sq. ft. in size. • 43, 2-bedroom units, 520 – 1,068 sq. ft. in size Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-2 are allowed. Housing is encouraged as part of a mixed-use project. 3. Design Intent. New development will help create an inviting appearance to Second and Third Streets. Parking areas should be attractive and screened, yet easy-to-find. Because of the high volume of traffic, the street front design should give special attention to pedestrian safety and comfort through setbacks and landscaping. This district has one of the highest levels of development intensity downtown because of its proximity to the Highway and the Transportation Center. Building heights are four (4) stories with height and FAR bonuses possible in limited circumstances to allow buildings up to five (5) stories when desirable amenities are provid ed. 14.05. 022 - Land Use Regulations (2/3 MUE) A wide variety of commercial uses is permitted-by-right or with Use Permit approval in the 2/3 MUE District. Multifamily residential land uses are allowed in the 2/3 MUE District zone, as part of mixed-use development and subject to administrative Use Permit approval. . Consistent The project proposes to redevelop the project site with a mixed-use building with 120 multifamily residential apartment units above 969 sq. ft. of ground-level commercial retail space and 121 garage parking spaces. The project application requests a Use Permit, in addition to an Environmental and Design Review Permit and a Lot Line Consolidation, to allow the multifamily residential land use in a commercial zoning district as part of a mixed-use redevelopment project. 14.05.032 - Property Development Regulations (2/3 MUE) • Maximum density: 600 sq. ft. of lot area/unit • Maximum FAR (Floor Area Ratio): 1.5 FAR • Minimum front yard setback: 5’ • Maximum height: 54’ • Minimum landscaping: 10% • Minimum usable outdoor area: voluntary Consistent with conditions As designed, the project is generally consistent with the applicable property development standards. By meeting the City’s affordable housing requirement (20% or 9 BMR units), the project requests the maximum 35% density bonus (16 additional market-rate units) under the State Density Bonus law and up to two (2) concessions/incentives. One of these requested concessions is a 59-unit density bonus above and beyond the 35% density bonus allowed under the State Density Bonus law. The project has submitted a financial pro forma providing documentation that the proposed 120-unit density is required to make the project financially feasible. This financial pro forma was reviewed by the City 3 rd party economic consultant who confirmed the proposed density is necessary to make the project financially feasible. Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-3 By meeting the City’s affordable housing requirement, the project is allowed an automatic height bonus of 12’, increasing the maximum height to 66’ on the project site (54’ + 12’). The second of the two concessions requested by the project under the State Density Bonus law is an additional 7’ height bonus, which increases the building height to a maximum 73’ from finished grade to the top of the roof. The documentation within the submitted financial pro forma also identifies that the additional 7’ height bonus is required to make the project financially feasible. The City’s economist consultant has again concluded the requested additional 7’ height bonus is necessary to make the project financially feasible. The project also requests a waiver of the front setback requirement along the Third St. frontage under the State Density Bonsu law. The documentation within the submitted financial pro forma also identifies that the waiver of the front setback is required to make the project financially feasible. The City’s economist consultant has again concluded the requested setback waiver is necessary to make the project financially feasible. The project proposes 12,555 sq. ft. (46%) of site landscaping, where a minimum 10% (2,737 sq. ft.) is required. New street trees are proposed along all three building frontages on the ground-floor. A combined 4,528 sq. ft. of landscaped area is proposed on the podium (2nd floor)-level between a central courtyard and common outdoor deck areas along the front (Third St. elevation) and rear (adjacent to the paint store located at 770 Second St.) building elevations. A landscaped rooftop amenities area, 5,317 sq. ft. in size, is also proposed. In addition, the project proposes raised Corten steel planters along the grou nd- floor of the Third St. frontage. Details on specific landscaping species are not provided at this time. The project proposes 969 sq. ft. of ground-level commercial space located at the northeast corner of the project site, at the corner of Third St and Tamalpais Ave. This represents 0.035 FAR where a maximum 1.5 FAR or 41,050.5 sq. ft. of nonresidential develop is allowed on the project site in addition to the residential density. Useable outdoor area is encouraged, though not required, in residential development as part of a mixed-use project. The project proposes 2,738 combined sq. ft. of private balconies to select residential units on the upper floors (floor 2 through 6). The project also proposes 4,353 combined sq. ft. of common outdoor area on the podium (2nd floor) level, within a central landscaped courtyard and along the front and rear elevations. The project proposes an additional 5,317 sq. ft. of common outdoor area through a landscaped roof deck. Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-4 Overall, the project proposes 12,408 sq. ft. of private and common outdoor recreational area or an average of 103.4 sq. ft. of recreational area per unit. CHAPTER 16 – SITE DEVELOPMENT STANDARDS 14.16.030 - Affordable Housing Requirement. Any new residential and mixed-use development projects with 21 or more housing units shall provide a minimum 20% ‘affordability’. Residential ‘ownership’ projects shall provide a minimum 50% of the required affordable units at the low- income household level and the remainder at the moderate-income household levels. By meeting specific affordability requirements at the low- income household level, a project is eligible for a State Density bonus of up to 35% and three (3) concessions. Consistent Under both the City’s General Plan (Land Use Policy LU -23; Land Use Map and Categories) and Zoning Ordinance (Sections 14.05.032; Property Development Standards; 2/3 MUE District), the maximum allowable density on the site is 45 units, based on the 27,367 sq. ft. of combined lot area between the two adjacent parcels within the project site. Both the City’s General Plan (Housing Policy H -19; Inclusionary Housing Requirement) and Zoning Ordinance (Section 14.16.030; Affordable Housing Requirement) further require that housing projects, which propose more than 20 new units, p rovide 20% of the total units at ‘below market rates’ (BMR units). Based on the 20% “affordability” requirement, the project would be required to provide nine (9) BMR units. For ‘rental’ units, a minimum of 50% of the required BMR units shall be made affor dable to very low- income households at <50% of the median County income, with the remainder affordable to low-income households equal to 51-80% of the median County income level. At the request of the Planning Commission during the study session to provide more affordability to off-set the proposed additional density, the project has voluntarily increased the proposed affordability, from nine (9) required BMR units (5 units at very low-income household levels and 4 units at low-income household levels) to 12 BMR units (5 units at very low-income household levels and 4 units at low-income household levels plus 3 BMR units at the moderate-income household levels for a fixed 10-year term). By meeting the minimum affordable housing requirement, the project is eligible to request a density bonus of up to a maximum of 35%, or 16 additional market -rate units, and up to two (2) concessions/incentives under the State Density Bonus law. The project is requesting two (2) concessions, an additional density bonus and a height bonus beyond the height bonus allowed under the Zoning Ordinance. In addition, the project requests a front setback (5’) waiver under the State Density Bonus law. Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-5 14.16.150 – Floor Area Ratios. A. General. 1. The intensity and density of development in nonresidential and mixed-use districts is identified by floor area ratio (FAR) and by the number of units allowed per one thousand (1,000) square feet of lot area for the location and zoning district in which a site is located. The FAR is the total buildin g square footage (gross floor area) divided by the lot area excluding public streets. Total building square footage excludes parking areas or garages (covered and uncovered), residential components of a mixed use project, hotels, and non -leasable covered atriums. Floor area for permanent child care facilities in nonresidential structures may be excluded in the FAR, subject to the provisions of Chapter 14.22, Use Permits. 2. See subsection G, floor area ratio limit maps for FAR limits in non-residential zoning districts. The maximum allowable FAR is not guaranteed and shall be determined by the following factors: site constraints, infrastructur e capacity, hazardous conditions and design policies. B. Mixed-Use Development. 1. Commercial or Office with Residential. FAR limits apply only to the non-residential component of a development. The number of residential units allowed on a lot is base d on the minimum lot area required per dwelling unit standard for the zoning district . ----------- G. Floor Area Ratio Limit Standards and Maps. 1. For lots in the downtown area, the following apply: a. FARs may be transferred from one portion to another of a parcel split by FAR designations if the transfer results in a scale compatible with surrounding development, as permitted in Section 14.16.340, Transfer of density on -site. b. A one-time increase in FAR up to ten percent (10%) of the building or seven hundred fifty (750) square feet, whichever is Consistent The maximum nonresidential development allowable on the project site is 1.5 FAR (floor area ratio) or 41,505.5 sq. ft. based on 27,367 sq. ft. of combined lot area. The project proposes 969 sq. ft. of ground level nonresidential development or commercial space on the project site. Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-6 larger, shall be allowed for expansion of commercial and office structures if consistent with the provisions of this title, consistent with the provisions of Chapter 14.22, Use Permits. A traffic study may be required for a FAR increase for buildings on Fifth or Mission Avenues. 2. A higher FAR may be permitted at the intersection of Andersen Drive, Highway 101 and Francisco Blvd. West, if the proposed development would substantially upgrade the area and in clude bulk and region-serving specialty retail and/or hotel uses, subject to a use permit (Chapter 14.22). 14.16.190 – Height Bonus. A. Downtown Height Bonuses. A height bonus may be granted by a use permit approved by the planning commission in the following downtown zoning districts. No more than one height bonus may be granted for a project. ----------- 3. In the Second/Third mixed use east district, a twelve -foot (12′) height bonus for any of the following: a. Affordable housing, consistent with Section 14.16.030 (Affordable housing); b. Public parking, providing it is consistent with the downtown design guidelines; c. Skywalks over Second or Third Streets, with the approval of the traffic engineer, and the recommendation of the design review board; d. Mid-block passageways between Fourth Street and parking lots on Third Street, with the recommendation of the design review board that the design is attractive and safe. Consistent with conditions By meeting the City’s affordable housing requirement (20% or 9 BMR units), the project is allowed an automatic height bonus of 12’ under the Zoning Ordinance, increasing the maximum height to 66’ on the project site (54’ + 12’). The project also requests an additional 7’ height bonus under the State Density Bonus law as a concession for meeting its affordable housing requirement, increasing the maximum overall height proposed to 73’ from finished grade to the roof deck. 14.16.227 – Light and Glare. Colors, materials and lighting shall be designed to avoid creating undue off- site light and glare impacts. New or amended building or site colors, materials and lighting shall comply with the following standards, subject to review and recommendation by the police department, public works Consistent with conditions The project proposes exterior lighting along all three (3) street fronts. LED sconce -type light fixtures are proposed to provide accent lighting for brick pillars at ground level along all three street frontages. Cut sheets for the light fixtures indicate these would use a 10-watt / 3,000 kelvin light source which would create a ‘warm’ light appearance. The light fixtures Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-7 department, and community development department: A. Glossy finishes and reflective glass such as glazed or mirrored surfaces are discouraged and prohibited where it would create an adverse impact on pedestrian or automotive traffic or on adjacent structures; particularly within the downtown environs and in commercial, industrial and hillside areas. B. Lighting fixtures shall be appropriately designed and/or shielded to conceal light sources from view off-site and avoid spillover onto adjacent properties. C. The foot-candle intensity of lighting should be the minimum amount necessary to provide a sense of security at building entryways, walkways and parking lots. In general terms, acceptable lighting levels would provide one (1) foot-candle ground level overlap at doorways, one-half (½) foot-candle overlap at walkways and parking lots, and fall below one (1) foot-candle at the property line. D. Lighting shall be reviewed for compatibility with on-site and off- sight light sources. This shall include review of lighting intensity, overlap and type of illumination (e.g., high-pressure sodium, LED, etc.). This may include a review by the city to assure that lighting installed on private property would not cause conflicts with public street lighting. E. Installation of new lighting fixtures or changes in lighting intensity on mixed use and non-residential properties shall be subject to environmental and design review permit review as required by Chapter 14.25 (Design Review). F. Maximum wattage of lamps shall be specified on the plans submitted for electrical permits. G. All new lighting shall be subject to a 90-day post installation inspection to allow for adjustment and assure compliance with this section. are proposed to be bronze finished with vertical slats which would match the perforated vertical slat design of the balcony railing and sunshade detailing. A condition of approval would be included establishing a 90-day lighting review period at final inspection/occupancy where adjustments in lighting may be required by staff to reduce off - site glare, if necessary. 14.16.230 – Lot Consolidation. Where a development project is constructed on more than one adjoining Consistent with conditions The project proposes to construct a mixed-use building over two (2) adjacent Downtown Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-8 lot, the owner or owners of such lots must merge such lots into a single lot when the building is proposed to cross the property line of the adjoin ing lots. The lots shall be merged prior to issuance of a building permit. lots. Prior to building permit issuance, the project will need to merge or consolidate the lots into one common parcel by extinguishing the common property line currently separating the lots. A plat map with closure calculations shall be submitted to Planning for review and approval by the Land Development Engineer in the Department of Public Works prior to approval by the Community Development Director and recordation with Marin County by the Land Development Engineer. 14.16.243 – Mechanical Equipment Screening. Equipment placed on the rooftop of a building or in an ex terior yard area shall be adequately screened from public view. See Chapter 14.16 for exclusions to maximum height requirements and Chapter 14.25 for design review requirements. Consistent The project design proposes a central courtyard on the podium (2nd floor) level which extends to roof. Rooftop mechanical equipment, including a photovoltaic system/solar array, is proposed to be separated from the 5,317 sq. ft of landscaped common outdoor area also on the roof deck by a 5-6’-tall screening wall. The 73’ building height proposed by the project, together with the height of the rooftop screening wall, would adequately mitigate any public views of the rooftop mechanical equipment. 14.16.260 - Noise Standards A. Residential Development. The following standards apply to residential development: ----------- 3. In high density and downtown residential districts residential interior standards shall be met, and common usable outdoor areas shall be designed to minimize noise impacts. Where possible, a 60 dBA (Ldn) standard shall be applied to usable outdoor areas 4. Interior noise standards for new single -family residential and residential health care development shall be 40 dBA (Ldn) for bedrooms and 45 dBA (Ldn) for other rooms. New hotels and motels shall meet a 45 dBA (Ldn) standard. For new multifamily development, hotels and motels, interior noise standards shall be described by State Administrative Code standards, Title 25, Part 2. ----------- 6. Post-construction monitoring and approval by an acoustical engineer shall be required in residential development near high noise sources to ensure that city standards have been met. Consistent with conditions noise impacts to the project would be ‘conditional acceptable’ and recommended the following noise reduction and insulation features be included in the project design: 1) The proposed solid 4’-tall parapet sound wall increase in height to 6’ around the roof deck; 2) sound-rated windows and specifically constructed exterior wall assemblies will be required at the time of building permit submittal (i.e., most windows will require an STC (Sound Transmission Class) 36 rating, some corner units will require windows with higher ratings, balcony doors will need to be sound-rated, and some wall assemblies with siding will require additional layers of gypsum); 3) All construction equipment shall operate with maintained mufflers and other state required noise attenuation devices; 4) Property owners and occupants within a 250 ft. radius of the project site shall receive notice 15 days prior commencement of construction of each phase, regarding the construction schedule of the project, subject to review and approval by Planning staff. These notices shall indicate dates and duration of construction activities and provide a contact name and telephone number to inquire about the construction schedule and register complaints;5) The project shall designate a Noise Disturbance Coordinator (NDC) to be present on -site during all grading and construction activities, who name and contact details shall be included in all notices. The NDC shall be responsible for responding to all complaints about grading and construction noise. When a compliant is received, the NDC shall notify Planning staff within 24-hours of the complaint, determine the cause of the complaint and implement reasonable measures to resolve the complaint, as deemed acceptable by Planning staff. In Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-9 addition, the name and contact information of the NDC shall be posted on the site and legible from a distance of 50 ft.; 6) Noise reduction methods shall be utilized during all grading and construction activities where feasible, including shutting off idling equipment, installing temporary acoustic barriers around stationary construction noise sources, maximizing the distance between construction equipment staging areas and occupied residential areas, and electric air compressors and similar power tools; 7) Grading and construction haul truck routes shall be designated to avoid sensitive receptors, such as residences and convalescent homes, to the greatest extent feasible; and 8) During construction activities, stationary construction equipment shall be located such that emitted noise is directed away from sensitive receptors. These recommendations by the Noise Study will be incorporated as conditions of approval. 14.16.295- Sight Distance. Fencing, vegetation and improvements shall be established and maintained only in a manner that does not reduce visibility for the safe ingress and egress of vehicles or pede strians within a required vision triangle, e.g., fifteen feet (15') from the curb return at any intersection or driveway, or as determined by the director of public works. In general, fencing and improvements or vegetation located within the established vision triangle (as determined below) shall not exceed a height of three feet (3') as measured above the adjacent street pavement. The vision triangle shall be kept free of any visual obstruction between a height of three feet (3') to eight feet (8') above t he street grade elevation. Consistent. The project proposes two (2) 20’-wide, two-way, driveways; one along the Tamalpais Ave. frontage and the other along the Lincoln Ave. frontage. The City’s Land Development Engineer reviewed the sight distance provided by the project design and has determined it adequate to provide safe ingress and egress of vehicles and pedestrians. 14.16.70- Water – Efficient Landscape All new development projects providing 500 sq. ft. or greater of landscaping shall be reviewed and obtain approval by the Marin Municipal Water District (MMWD) prior to building permit issuance. MMWD shall review all project landscaping, irrigation and grading plans for compliance with the most recently adopted MMWD water-conservation ordinance. Consistent with conditions. The project proposes 12,555 sq. ft. (46%) of site landscaping, where a minimum 10% (2,737 sq. ft.) is required. New street trees are proposed along all three building frontages on the ground-floor. A combined 4,528 sq. ft. of landscaped area is proposed on the podium (2nd floor)-level between a central courtyard and common outdoor deck areas along the front (Third St. elevation) and rear (adjacent to the paint store located at 770 Second St.) building elevations. A landscaped rooftop amenities area, 5,317 sq. ft. in size, is also proposed. In addition, the project proposes raised Corten steel planters along the ground - floor of the Third St. frontage. Details on specific landscaping species are not provided at this time. Prior to building permit issuance, the project will be required to have the landscape and irrigation plans reviewed and approved by MMWD to comply with MMWD’s most recent water-efficiency requirements. A condition of approval would be Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-10 included requiring submittal of documentation from MMWD review and approval of the project’s landscape details prior to building permit issuance. CHAPTER 17 – PERFORMANCE STANDARDS 14.17.100 – Residential Uses in Commercial Districts Applicability. Performance standards for residential uses in commercial districts shall be applied through an administrative use permit in the 4SRC, HO, 2/3 MUE and MUW, CSMU, WEV, GC, FBWC, C/O, and M districts or through a use permit in the NC district. Standards: 1. Location. In the 4SRC and WEV districts, residential units may be located above the ground floor, and on rear portions of the ground. Location of residential units in the 2/3 MUE and MUW, GC, FBWC, HO, C/O, CSMU, M and NC districts shall be determined through project review. 2. .Access. Residential units shall have a separate and secured entrance and exit. 3. Parking. Residential parking shall comply with Chapter 14.18, Parking Standards, of this title. 4. .Noise. Residential units shall meet the residential noise standards in Section 14.16.260, Noise standards, of this title. 5. Lighting. All exterior lighting shall be sufficient to establish a sense of well-being to the pedestrian and one that is sufficient to facilitate recognition of persons at a reasonable distance. Type and placement of lighting shall be to the satisfaction of the police department. The minimum of one foot-candle at ground level shall be provided in all exterior doorways and vehicle parking areas. 6. Refuse Storage and Location. An adequate refuse storage area shall be provided for the residential use. 7. Location of new residential units shall consider existing surrounding uses in order to minimize impacts from existing Consistent with conditions The project site is located with the 2/3 MUE District zone, a Downtown commercial zoning district. The project would comply with the standards to allow residential uses in a commercial district, subject to recommendations to mitigate potential noise impacts as determined in the submitted Noise Study for the project. Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-11 uses. CHAPTER 18 – PARKING STANDARDS 14.18.040 - Parking Requirements A. Off-street parking shall be provided in accord with the following chart: • New studio units, located within the Downtown, are required to provide 1 parking space; • New 1-bedroom units, located within the Downtown, are required to provide 1 parking space; • New, 2-bedroom units, located within the Downtown, are required to provide 1.5 parking spaces; • No ‘guest’ parking spaces are required within the Downtown unless the project is located within 200’ of a residential zoning district and then will be required to provide 1 parking space per every 5 units; and • Commercial space, located within the Downtown, is required to provide 1 parking space per 250-300 gross building sq. ft., generally. B. Parking Modification. The parking requirement for any specific use listed may be modified so as to provide adequate parking which is fair, equitable, logical and consistent with the intent of this chapter. Such modification may also include reduction in parking ratios for businesses in the downtown zoning districts that allow the use of private parking facilities to be used for public parking during evening or weekend hours. Parking modifications shall require an application for a use permit and shall be subject to review by the community development director and public works director, and approval by the zoning administrator. Consistent The project proposes to provide 121 parking spaces on site. All parking would be on the ground floor and that this level would have a taller plate height (22 ft tall) to accommodate the mechanical parking lifts. 109 of the 121 spaces would be provided through mechanical jigsaw parking platforms and the remaining 12 spaces would be non-mechanical lift spaces for electric vehicle (EV), visitor, ADA and car share Through State Density Bonus law, projects that are within ½ mile of a transit facility are required to provide 0.5 parking space/bedroom. In this case, the project includes 163 bedrooms, therefore 81.5 (82) parking spaces would be required to meet the residential parking requirement. Since the project site is located outside the Downtown Parking District, the project is required to provide 3-4 parking spaces to meet the nonresidential parking required. The project proposes to provide 121 parking space, which is 35-36 spaces in excess of the required parking. The reduced parking requirement does not count as a concession or waiver, under State Density Bonus law. The proposed vertical stacked parking lifts are a departure from the parking facility design envisioned by the Parking Standards of the Zoning Ordinance, which is providing parking on a more established horizontal or side-by-side configuration. A Parking Modification will be required, through a Use Permit, with the recommendation of the Public Works Director and the Community Development Director, to allow mechanical parking lifts. 14.18.045 – Clean Air Vehicles. A. Applicability. Parking spaces serving new nonresidential buildings shall be designated for any combination of low-emitting, Consistent with conditions The project has been conditioned to provide a minimum of 11 clean air vehicle parking spaces, pre-wired for electric vehicle charging stations. Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-12 fuel-efficient, and carpool/van pool vehicles, as defined by Section 5.102 of the California Green Building Standards Code, California Code of Regulations, Part 11 of Title 24. B. Number of Short-Term Spaces Required. 11 parking spaces for clean air vehicles shall be provided for parking facilities providing 101-150 parking spaces. C. Parking Stall Marking. The following characters shall be painted, using the same paint for stall striping, such that the lower edge of the last word aligns with the end of the stall striping and is visible beneath a parked vehicle: "CLEAN AIR VEHICLE”. D. Prewiring for Electric Vehicle Charging Stations. In new or substantially renovated parking facilities of twenty -five (25) or more spaces electrical conduit capable of supporting suitable wiring for an electric vehicle charging station shall be installed between an electrical service panel and an area of clean air vehicle parking spaces as required by this section. The conduit shall be capped and labeled for potential future use. 14.18.050 –Off-Street Loading and Unloading. The minimum off-street loading and unloading space required for specific uses shall be as follows: A. Retail and service establishments: one off -street loading and unloading space with minimum dimensions of ten feet (10′) in width by thirty-five feet (35′) in length, with a fourteen-foot (14′) height clearance. ----------- C. Each loading area shall have adequate driveways, turning and maneuvering areas for access and usability, and shall at all times have access to a public street or alley. -----------. E. Off-street loading and unloading spaces shall be adequately screened from view from public rights -of-way to the satisfaction of the planning director. Consistent The proposed design of the parking garage includes a loading zone which c omplies with the applicable standards for loading and unloading spaces. 14.18.090 –Bicycle Parking. Consistent Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-13 A. Applicability. Bicycle parking shall be required for all new nonresidential buildings and in major renovations of nonresidential buildings having thir ty (30) or more parking spaces, and for all public/quasi -public uses. B. Number of Short-Term Spaces Required. 1. Commercial, office, industrial, and multi -family residential uses: five percent (5%) of the requirement for automobile parking spaces, with a minimum of one two -bike capacity rack. 2. Public/quasi-public uses: as determined by parking study, or as specified by use permit. 3. Exempt uses: animal sales and service; motor vehicle sales and services; building materials and supplies (large -item); catering establishments; funeral and interment services; temporary uses; recycling facilities; other uses as determined by the planning director. C. Number of Long-Term Spaces Required. 1. For nonresidential buildings with over ten (10) tenant -occupants: Five percent (5%) of the requirement for automobile parking spaces, with a minimum of one space. D. Reduction of Vehicle Parking. Properties that provide bicycle parking in excess of the bicycle parking spaces identified in Section 14.18.090.B. and/or C. may qualify for a reduction to the overall vehicle parking requirements subject to the approval of a use permit for parking modification. E. Design. 1. Short-Term Parking: Bike racks shall be provided with each bicycle parking space. The rack shall consist of a stationary object to which the user can lock the bike. 2. Long-Term Parking: Acceptable parking facilities include: a. Covered, lockable enclosures with permanently anchored racks for bicycles, b. Lockable bicycle room with permane ntly anchored racks, or c. Lockable, permanently anchored bicycle lockers. The project proposes 120 residential units above a small, 969 sq. ft. ground floor commercial space. Since bicycle parking is required for only the nonresidential porti on of the project, the minimum short-term bicycle parking is required or one (1) two-bike capacity rack. The project proposes eight (8) two-bike capacity racks evenly distributed along both the Third St. and Tamalpais Ave, frontages, adjacent to the new street trees and grates. The project also proposes to provide a 612 sq. ft. “Bike lounge” on the ground level, adjacent to the commercial space, capable of providing secured long-term parking for up to 24 bicycles for residents and the public. Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-14 3. Parking facilities shall support bicycles in a stable position. 4. The facilities shall provide at least an eighteen inch (18″) clearance from the centerline of adjacent bi cycles on the left and right, and at least ten inches (10″) to walls or other obstructions. 5. An aisle or other space shall be provided to bicycles to enter and leave the facility. This aisle shall have a width of at least five feet (5′) to the front or rear of a standard six-foot (6′) bicycle parked in a facility. 6. Bicycle parking should be situated at least as conveniently to building entrances as the most convenient car parking area, but a minimum distance of one hundred feet (100′) of a visitors' entrance. Bicycle and auto parking areas shall be separated by a physical barrier or sufficient distance to protect parked bicycles from damage by cars. 7. Bicycle parking facilities should be located in highly visible, well-lit areas to minimize theft and vandalism. 8. Overhead coverage or rain shelters for bicycle parking facilities are encouraged. 9. The planning director (or the planning director's designated appointee) shall have the authority to review the design of all bicycle parking faciliti es required by this title with respect to safety, security and convenienc e. 14.18.100 –Parking Space Dimensions A. Standard size parking spaces shall be nine feet (9') by nineteen feet (19') in dimension, except that in downtown, the standard size parking space shall be eight and one -half feet (8.5') by eighteen feet (18') in dimensions; B. Compact parking spaces shall be eight feet (8′) by sixteen feet (16′) in dimensions.: Consistent All on-site parking spaces are designed to comply with the minimum parking space dimensions for ‘standard’ and ‘compact’ Downtown parking spaces. 14.18.110 –Compact Spaces – Allowable Percentage A. Allowable Percentage. A maximum thirty percent (30%) of the required parking spaces may be compact spaces for facilities exceeding Consistent The project proposes 121 parking spaces of which 36 parking spaces are allowed to meet reduced ‘compact’ space dimensions. The project proposes three (3) parking spaces which Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-15 five (5) space s; B. Spaces Labeled. Compact spaces shall be labeled in p arking facilities as compact spaces to the satisfaction of the city traffic engineer; C. Distribution. Compact spaces should be distributed throughout the parking lot to the extent feasible. will meet reduced ‘compact’ parking space dimensions. 14.18.130 - Parking Facility Dimensions and Design A. Minimum Standards. • 90O, two-way Downtown parking spaces require minimum dimensions to be 8.5’ wide by 18’ deep with a minimum backup aisle between the parking spaces of 26’. ----------- B. Parking Stall Access. • Use of a required parking space shall not require more than two (2) vehicle maneuvers. At the end of a parking facility with four (4) or more parking spaces, an aisle or driveway providing access to the end parking space shall extend at least two feet (2′) beyond the required width of the parking space in order to provide adequate on-site area for turnaround purposes Consistent The proposed parking garage design layouts for the new residential buildings have been reviewed by the City Engineer and found to be consistent with all applicable design standards under Section 14.18.130 of the Zoning Ordinance. 14.18.140 - Access to Public Right-of-Way Driveway Widths. The minimum curb cut for driveways at the face of the curb, for residential uses serving 25 or more spaces, shall have a minimum inside depressed width of 24’. Consistent The project proposes two (2), two-way driveways; one along the Tamalpais Ave. frontage and the other along the Lincoln Ave. frontage. Current ‘vision’ documents (Downtown San Rafael Vision, San Rafael Downtown Design Guidelines, Downtown San Rafael Station Area Plan and the San Rafael Bicycle and Pedestrian Master Plan; 2018 Update) all encourage improving Tamalpais Ave., which is a ‘gateway’ to the Downtown with excellent visibility from all transportation modes (pedestrian, bicycle and transit, as a ‘pedestrian street’ by minimizing driveway cuts and driveway widths. The proposed driveway widths to the parking garage has been reviewed and is supported by the City Engineer. CHAPTER 22 – USE PERMITS Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-16 14.22.080 – Findings. The following findings must be made to approve a Use Permit: A. Proposed use is in accord with the general plan, the objectives of the zoning ordinance and the purposes of the district in which the site is located; B. Proposed use will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity, or to the general welfare of the City; and C. Proposed use complies with each of the applicable provisions of the Zoning Ordinance. Consistent A. The proposed use is in accord with the General Plan, the objectives of the Zoning Ordinance, and the purposes of the Second/Third Mixed Use East (2/3 MUE) District in which the project site is located in that: 1. As documented in the General Plan 2020 Consistency Table attached to the staff report (Exhibit 3) to the Planning Commission, the project will be consistent with all pertinent General Plan policies, subject to requested concessions for additional density and building height under the State Density Bonus law for which the project is eligible after meeting its affordable housing requirement. The project would be consistent, or conditionally consistent, with the following General Plan policies: • Land Use Policies LU-2 (Development Timing), LU-8 (Density of Residential Development), LU-9 (Intensity of Nonresidential Development), LU-12 (Building Heights). LU-13 (Height Bonuses), LU-14 (Land Use Compatibility), LU-18 (Lot Consolidation), and LU-23 (Land Use Map and Categories); • Housing Policies H-1 (Housing Distribution), H-2 (Design That Fits into the Neighborhood Context), H-3 (Public Information and Participation), H-14 (Adequate Sites), H-15 (Infill Near Transit), and H-18 (Inclusionary Housing); • Neighborhood Policies NH-3 (Housing Mix), NH-15 (Downtown Vision), NH-16 (Economic Success), NH-17 (Competing Concerns), NH-22 (Housing Downtown), NH-25 (Pedestrian Comfort and Safety), NH-29 (Downtown Design), NH-30 (Pedestrian Environments), NH-31 (Ground Floor Designed for Pedestrians) and NH-37 (Hetherton Office District Design Considerations); • Community Design Policies CD-1 (City Image), CD-2 (Neighborhood Identity), CD-3 (Neighborhoods), CD-5 (Views), CD-7 (Downtown and Marin Civic Center), CD-8 (Gateways), CD-11 (Multifamily Design Guidelines), CD-14 (Recreational Areas), CD-15 (Participation in Project Review), CD-18 (Landscaping) and CD-19 (Lighting); • Circulation Policies C-5 (Traffic Level of Service Standards), C-7 (Circulation Improvement Funding) C-26 (Bicycle Plan Implementation) and C-27 (Pedestrian Plan Implementation); • Infrastructure Policy I-2 (Adequacy of City Infrastructure and Services); Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-17 • Sustainability Policies SU-5d (Reduce Use of Nonrenewable Resources; Water Efficiency Programs) and SU-7 (New and Existing Trees); • Culture and Arts Policy CA-15 (Protection of Archaeological Resources) • Park and Recreation Policy PR-10 (Onsite Recreation Facilities) and PR-24 (Contributions by Rental Residential); • Safety Policies S-1 (Location of Future Development), S-4 (Geotechnical Review), S-6 (Seismic Safety of New Buildings), S-17 (Flood Protection of New Development), S-25 (Regional Water Quality Control Board (RWQCB) Requirements) and S-32 (Safety Review of Development Projects); and • Air and Water Quality Policies AW-1 (State and Federal Standards), AW-7 (Local, State and Federal Standards) and AW-8 (Reduce Pollution from Urban Runoff). In weighing all of the applicable policies, the project is, generally, consistent with the General Plan. The project would redevelop two (2) Downtown in-fill lots, one of which (723 Third St/898 Lincoln Ave.) is listed as both Housing Opportunity Sites and Underutilized Mixed-Use Site in Appendix B of the General Plan. The project would construct 120 new residential ‘rental’ units in the Downtown, whose residents and guests would help activate Tamalpais Ave., identified as a ‘gateway’ to Downtown, supporting the City’s long-term goal of creating ‘alive after 5’ evening and weekend activity in the Downtown, and provide economic opportunities to Downtown businesses, particularly restaurants. These new units would help meet the City’s RHNA (Regional Housing Needs Allocation) target of providing 1,007 additional housing units in the City by 2023. A total of nine (9) of these housing units would be required to be deed-restricted as ‘affordable’ housing; five (5) of these housing units would be deed-restricted for rent to very low-income households and four (4) units deed-restricted for rent to low-income households. As a response to the Planning Commission study session requesting the project provide greater affordability to off-set the proposed additional density bonus, three (3) additional affordable units at the moderate -income household level would be voluntarily proposed for a fixed 10 -year term. These new below market rate or BMR units would contribute to the City’s need to provide 240 new very low-income housing units and 120 new low-income housing units by 2023. The project would be consistent with several adopted ‘vision’ documents, including the Downtown Vision, the Downtown Design Guidelines and the Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-18 Downtown San Rafael Station Area Plan, in terms of use, height, scale, stepbacks, and landscaping. 2. As documented in the Zoning Ordinance Consistency Table attached to the staff report to the Planning Commission, the proposed project will be consistent with the objectives of the Zoning Ordinance, which is to promote and protect the public health safety, peace, comfort and general welfare, given that; i. The project will implement and promote the goals and policies of the San Rafael General Plan 2020, as identified in Finding A1 above; ii. The project has been reviewed by Community Development Department, other appropriate City Departments and non-City agencies, as well as the City’s Design Review Board and the Planning Commission as a conceptual project, and conditions have been created or the project has been changed, revised or modified to reduce or negate potential impacts caused by inappropriate location, use or design of the building and improvements; iii. The project would promote housing development to meet the housing needs of current and future residents, including affordable housing, and to meet the City’s RHNA target goals, as identified in Finding A1 above ; iv. The project has coordinated the service demands with the capabilities of existing street, utilities and public services. All service providers, including PG&E, Marin Sanitary Service, Marin Municipal Water District, San Rafael Sanitation District, Central Marin Sanitation Agency, and the City Engineer, have review the project and indicated that adequate infrastructure capacity exists for the project 3. As documented in the Zoning Ordinance Consistency Table attached to the staff report to the Planning Commission, the proposed project would be consistent with the purposes of both the 2/3 MUE Districts, given that: i. The project will help promote Downtown as a viable urban center with a mixture of civic, social, entertainment, cultural and residential uses by redeveloping the project site with a mixed -use building with 120 new residential apartment units above 121 garage parking spaces and a 969 sq. ft. commercial space; Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-19 ii. The project will provide housing opportunities by proposing housing in mixed-use districts which will help meet the housing needs of current and future residents, including affordable housing, and to meet the City’s RHNA target goals, as identified in Finding A1 above; iii. The project will help activate the pedestrian character of Tamalpais Ave., identified as a ‘gateway’ to Downtown with both housing and commercial space in the Downtown, adjacent to the Downtown SMART station and in close proximity to the relocated Bettini Transit Center (whose exact future location is unknown at this time); and iv. The project will help promote Tamalpais Ave. as a ‘pedestrian street’ by minimizing driveway cuts and driveway widths, widening the sidewalk and installing street trees and raised Corten steel landscaped planters along all three (3) street frontages. B. The proposed use will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity, given that: 1) The project has been referred to, and reviewed by, the appropriate City departments, non- City agencies, the appropriate surrounding neighbo rhood group (Downtown Business Improvement District, Federation of San Rafael Neighborhoods, Gerstle Park Neighborhood Assoc., Montecito Area Residents Assoc., Bret Harte Community Assn. and Lincoln-San Rafael Hill Neighborhood Assoc.) and both the Design Rreview Board and Planning Commission during separate conceptual design review meetings, the Planning Commission study session, the Board’s review of the forma project and this Planning Commission hearing; and 2) Revisons, modifications or changes to the project have occurred as a result of comments or recommendations provided by these departments, neighborbhood groups and hearing bodies, or conditions of approval have been ncluded to mitigate any potential negative impacts anticipated to be generated by the proposed project; and C. The proposed use complies with each of the applicable provisions of the Zoning Ordinance, as documented in the Zoning Ordinance Consistency Table attached to the staff report (Exhibit 4) to the Planning Commission. Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-20 CHAPTER 25 – ENVIRONMENTAL AND DESIGN REVIEW PERMIT 14.25.010 – Specific Purposes Environmental and design review implements general plan policies concerning the environment and design by guiding the location, functions and appearance of development. The key environ mental and design goal of the city is to respect and protect the natural environment and assure that development is harmoniously integrated with the existing qualities of the city. The purposes of environmental and design review are t o: A. First and foremost, maintain a proper balance between development and the natural environment; B. Ensure that the location, design and materials and colors of development blends with and enhances the natural setting s; C. Maintain and improve the quality of, and relationship betwe en, development and the surrounding area to contribute to the attractiveness of the city; D. Preserve balance and harmony within neighborhoods . E. Promote design excellence by encouraging creative design and the innovative use of materials and methods and techni ques; and F. Preserve and enhance views from other buildings and public property Consistent The project proposes a contemporary design, similar to the nearby BioMarin campus buildings, though with unique façade treatments (brick with Corten steel planters at the ground level and a mixture of stucco and vertical and horizontal fiber cement board siding at the upper levels), greater articulation, stepping back the upper stories and a more ‘residential’ window proportion. The proposed 6-story scale was reviewed by both the Board and the Commission during conceptual design review, the Commission again during study session review and the Board again during formal project review and supported. The project design has been revised to provide equal, high -quality design attention to all four building elevations, including the rear elevation which is shared with 770 Second St. Better vertical and horizontal articulation and stepbacks of upper stories have been incorporated into the revised project design. In addition, previously proposed upper-story projections or encroachments over the sidewalk have been eliminated. Extensive landscaping in the form of street trees and Corten steel raise planter along all three street fronts is proposed to help create a pedestrian scale. The project proposes to orient pedestrian activity through the lobby area both through the main entry on Third St and at the northwest corner of Third St./Lincoln Ave. Photo simulations were created by the applicant and submitted within the project plans, which indicate minor view impacts of the surrounding hillsides west and north of the project site. These potential view impacts would be similar to those resulting from development of the adjacent BioMarin campus. 14.25.050 - Review Criteria Projects must meet the following design review criteria: • Consistency with General Plan design polices. • Consistency with Specific Plans • Design criteria must meet the objectives of Chapter 25 (Design Review), which include ensuring that the design blends with the natural setting, maintains and improves the quality of and relationship between the development and the surrounding area, preserve the balance and Consistent Overall, the project would be consistent with all applicable San Rafael General Plan 2020 policies. The project site is a choice housing site due to its close proximity to the U.S. Hwy. 101 corridor, the Downtown, the Downtown SMART station and the Bettini Transit Center (whose future specific location is still unknown at this time). The amount of residential density and building height are within the General Plan limits (Land Use Policies LU-8 and LU-12/LU-13), subject to requested density bonus and height bonus concessions/incentives under the State Density Bonus law. The City supports the development of housing, at all levels, to help meet the needs of all San Rafael residents. Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-21 harmony within a neighborhood, promotes excellence in design, and preserves and enhances views. • Site design is harmonious amongst structures within the development and existing development in the vicinity, natural site features should be protected and preserved, safe access and adequate parking should be provided, drainage should be designed to be ensure proper surface drainage The project would also help the City meet its RHNA (Regional Housing Needs Allocation) requirements by providing a total of 12 affordable housing or BMR units (9 required BMR units, including 5 at very low-income levels and 4 at low-income levels, plus an additional 3 voluntary BMR units at moderate-income household level for a fixe 10-year period; Housing Policy H-18). The scale and quality of the existing development located south of the core Downtown (Fourth St.) and near U.S Highway 101 is changing, primarily due to the ongoing development of the BioMarin campus. Low profile (1- and 2-story) development is being replaced with much taller (5- and 6-story) buildings. Determining the predominant design character is a little more difficult. Structures within the adjacent BioMarin campus are integrated with a cohesive architectural design with coordinated façade treatments. The project proposes a similar contemporary design though with unique façade treatments (brick with Corten steel planters at the ground level, stucco at the mid-levels and a mixture of stucco and vertical and horizontal fiber cement board siding at the upper levels), greater articulation and stepbacks of the upper stories and more ‘residential’ window proportions. The project design has been revised to provide equal, high -quality design attention to all four building elevations, including the rear elevation which is shared with 770 Second St. Better vertical and horizontal articulation and stepbacks of upper stories have been incorporated into the revised project design. In addition, previously proposed upper-story projections or encroachments over the sidewalk have been eliminated . The project is required to provide 82 on-site parking spaces based on State Density Bonus law that requires 0.5 spaces/bedroom. The project proposes to pro vide 33 more parking spaces than required (121 provided vs 82 required) as an amenity for the residential units This parking requirement under the State Density Bonus law excludes requiring guest parking. The amount of proposed parking would generally equal 1 space per unit. 14.25.090 - Findings The following findings must be made to approve a Design Review Permit • Project design is in accord with the general plan, the objectives of the zoning ordinance and the purposes of this chapter; • Project design is consistent with all applicable site, architecture and Consistent A. The project design is in accord with the General Plan, the objectives of the Zoning Ordinance, and the purposes of Chapter 14.25 of the Zoning Ordinance; in that: 1. As documented in the General Plan 2020 Consistency Table (Exhibit 3), the proposed project will implement and promote the goals and policies of the San Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-22 landscaping design criteria and guidelines for the district in which the site is located • Project design minimizes adverse environmental impacts • Project design will not be detrimental to the public health, safety or welfare nor materially injurious to properties or improvements in the vicinity. Rafael General Plan 2020, 2. As documented in the Zoning Ordinance Consistency Table (Exhibit.4), the proposed project will be consistent with the objectives of the Zoning Ordinance, which is to promote and protect the public health safety, peace, comfort and general welfare; 3. As documented in the Zoning Ordinance Consistency Table (Exhibit.4), the proposed project will be consistent with the purposes of Environmental and Design Review Permits, given that; the project will promote design excellence by encouraging creative design and the innovative use of materials and methods and techniques. B. The project design is consistent with all applicable site, architecture and landscaping design criteria and guidelines for the 2/3 MUE District in which the project site is located, given that; 1. The project design will be consistent with the maximum allowable density for the site, which is 45 units based on 27,367 sq. ft. of total lot area, subject to requests for automatic and discretionary density bonuses under the State Density Bonus law after meeting mandatory affordable housing requirements; 2. The project will be consistent with the maximum height allowed for the project site, which is 54’, subject to requests for automatic and discretionary height bonuses under the State Density Bonus law after meeting mandatory affordable housing requirements; 3. The project will be consistent with the minimum required yard setbacks, which is limited to a 5’ front (Third St. frontage) setback, subject to a request for setback waiver under the State Density Bonus law after meeting mandatory affordable housing requirements; 4. The project will be consistent with the minimum landscaping requirement for the project site, which is 10% or 2,737 sq. ft. (The project proposes 12,555 sq. ft. of site landscaping); Exhibit 4 TABLE ANALYZING PROJECT COMPLIANCE WITH SAN RAFAEL ZONING ORDINANCE (TITLE 14) New Mixed-Use, 120-Unit Building File #: ED18-018; UP18-008; LLA18-001 703-723 Third St. / 898 Lincoln Ave. Title: Zoning Ordinance Consistency Table Exhibit: 4-23 5. The project will be consistent with the maximum FAR (floor area ratio) allowed on the project site by proposing 969 sq. ft. of ground-level commercial space located at the northeast corner of the project site, at the corner of Third St and Tamalpais Ave. This represents 0.035 FAR where a maximum 1.5 FAR or 41,050.5 sq. ft. of nonresidential develop is allowed on the project site in addition to the residential density; 6. The project will voluntarily provide 12,408 sq. ft. of private and common outdoor recreational area or an average of 103.4 sq. ft. of outdoor recreational area per unit; 7. The provisions of Marin Municipal Water District’s (MMWD) most recent water conservation apply to the project, where MMWD approval is required prior to the issuance of any building or grading permit; and 8. The proposed project will be consistent with review criteria for Environmental and Design Review Permits (Chapter 14.25 of the Zoning Ordinance), by proposing a consistent, high-quality architectural design (colors and materials; scale; bulk and mass; fenestration and articulation) throughout the project site. C. The project design minimizes adverse environmental impacts, given that: a California Environmental Quality Act (CEQA) review and clearance was prepared, based on supporting studies submitted with the project, substantiating a Categorical Exemption (Class 32; In-Fill Development Projects), as determined by a draft Notice of Exemption (NOE), dated January 21, 2019. D. The project design, together with the conditions applicable thereto, will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity, or to the general welfare of the City, given that; the project has been reviewed by appropriate City departments, non-City agencies, the appropriate surrounding neighborhood groups, and the Planning Commission during a February 26, 2019 study session, and conditions of approval have been included to mitigate any potential negative impacts anticipated to be generated by the proposed project. “Good Design” Criteria for Downtown San Rafael **Summary of Applicable Criteria** General • Each project should have an internally consistent design vocabulary • Forms and materials should express he building’s design intent and context • Design strategies such as “base middle and top” are encouraged but not the sole design alternative • Height and bulk can be mitigated by step backs, articulation, use of different materials • Projections over public right of ways shall be limited to bay windows, balconies and marquees * • Provide architectural interest such as strategic placement of forms and applied features and special treatment at corners especially at intersecting streets • Concentrate premium materials at points of maximum enjoyment: o At street level o At building entrances o On highly visible architectural forms and elements • Maintain pedestrian scale, especially at the o lower floors • Buildings should relate to established streetscape elements such as cornice lines, fenestration or other shared elements • New building design may include high quality contemporary architecture • Use landscape to humanize and frame the built environment • Use durable, reusable, flexible, permeable and repairable pavement materials • All mechanical equipment shall be screened and shall not project above its enclosure • Exceptional design is encouraged and may be allowed to deviate from the design guidelines. However: o Projects must be exemplary o They must make a significant contribution to their surroundings o They must contribute public benefit beyond great design • Projects should conform with General Downtown Design Guidelines and District Design Guidelines • Different districts of Downtown have different design priorities Gateway District: • Provide active street fronts along Tamalpais • Articulate elevations to avoid a “building as wall” parallel to the freeway • Create a sense of arrival with welcoming gateway elements such as: o Distinctive building form massing and detailing o Public plazas Gateway – Transit District: • Enhance the Tamalpais greenway from 2nd to Mission as a complete street • Anchor the district with a high-quality transit center 2nd /3rd Corridor & Lindaro: • Reduce building mass along the boulevards with 3rd or 4th floor setbacks and at ground level corner entrances • Use distinctive forms and detailing at corners particularly those facing oncoming traffic • Locate retail at intersections and along pedestrian N - S streets • Enhance the boulevard, by providing continuous curbside planting strips and/or ample tree pockets with grates • Consider increasing the 5’ setback requirement along 2nd and 3rd Street • Varied setback depths are encouraged particularly on NS streets for pedestrian amenities and landscaping Place back flow preventers, transformers, and other utilities out of site or in undersidewalk vaults 369 Pine Street, Suite 350 San Francisco CA 94104 | 415-618-0700 | www.seifel.com Date August 19, 2019 To: Raffi Boloyan, City of San Rafael From: Seifel Consulting Inc. Subject: Financial Feasibility Analysis of 703 Third Street The City of San Rafael retained Seifel Consulting to provide real estate advisory services in connection with the land use approval process for the proposed development located at 703 Third Street in downtown San Rafael. Seifel Consulting performed an independent review of the development assumptions and financial feasibility for various development scenarios that could be built on the site. This memorandum updates the financial feasibility analysis that was presented to the Planning Commission in February 2019. As will be further described in this memorandum, it evaluates three development scenarios: ¥ 61-unit “Base Case” scenario, which assumes a 35% density bonus per State Density Bonus Law and the provision of affordable housing units in accordance with City and State Density Bonus Law requirements (9 affordable units) ¥ 120-unit “Proposed Project” scenario, which was voluntarily amended by the Applicant to include additional affordable housing units (12 affordable units) ¥ 120-unit “Alternative 1” scenario, which would include double the amount of affordable housing units required under the Base Case (18 affordable units) Summary of Findings The financial feasibility analysis presented in this memorandum indicates that the proposed development is not financially feasible under the Base Case scenario, and additional density needs to be provided in order for new development to proceed. The additional density being requested in the amended application for the Proposed Project enhances financial feasibility by increasing development revenues and reducing development costs per housing unit in the following ways: ¥ Lowers land cost by allowing the cost of land to be spread among a larger number of units. ¥ Lowers construction costs by facilitating more efficient construction across a larger building envelope and sharing the cost of the concrete podium among more units. ¥ Lowers certain government fees as some fees are fixed and can be spread among more units. ¥ Lowers other indirect soft costs, such as fixed predevelopment, design and engineering costs that can be shared among more units. ¥ Increases revenues from the addition of market rate units on the property. Based on the financial analysis described in this memorandum, the higher density and greater number of units provided in the Proposed Project is necessary to achieve financial feasibility. However, financial feasibility for the Proposed Project is marginal given the high construction costs and reduced residential revenue potential associated with the City’s requested modifications and requirements as further described Page 2 below. Furthermore, the financial analysis indicates that Alternative 1, which contains additional housing units affordable to very low and low-income households, is not financially viable. Organization of Memorandum The memorandum is organized into three sections as follows, concluding with a summary of financial feasibility findings: A. Description of Development Scenarios B. Review of Pro Forma Assumptions and Methodology C. Financial Feasibility Findings A. Description of Development Scenarios The proposed development at 703 Third Street consists of the redevelopment and consolidation of two contiguous parcels that are currently developed with two existing commercial buildings and associated surface parking in downtown San Rafael. The proposed development will be built on a 27,395 square foot lot that is currently zoned at a maximum density of 1 residential unit per 600 square feet of land area. For this updated analysis, three development scenarios were analyzed to evaluate financial feasibility: 1. Base Case, which consists of a 61-unit mixed use development as allowed under the City’s existing zoning with an assumed 35 percent (%) density bonus as allowed by State Density Bonus Law for the provision of on-site affordable housing, as further described below. o The Base Case scenario assumes the provision of affordable housing according to the City’s current requirements (20% of the base density or 9 affordable units). 2. Proposed Project, which consists of a 120-unit mixed-use development as described in the development application submitted by Van Meter Williams Pollack (VMWP) on behalf of the developer of the property, Seagate Properties Inc. (Seagate) as amended. o The Proposed Project scenario was revised by the Applicant to include three additional affordable housing units based on comments received during the February Planning Commission meeting (27% of the base density or 12 affordable units). 3. Alternative 1, which is consistent with the development application as recently amended except that it includes twice the amount of affordable housing units as the Base Case o Alternative 1 assumes additional affordable housing units (40% of the base density or 18 affordable units). Each of these scenarios is briefly described below. Base Case Scenario– Given the site acreage, 45 housing units could be built on the property under existing zoning. In addition, the project is eligible to receive a 35% density bonus and two concessions under State Density Bonus Law because the developer would provide 11% of the 45 units at restricted “below market rate” rents that are affordable to very low income households. The 35% density bonus means that an additional 16 units may be built on the site for a total of 61 units. The City also has an inclusionary housing ordinance that requires 20% of the allowable 45 units to be provided at restricted rent levels.1 Thus, the base case scenario includes 5 units that are affordable to very 1 For rental projects such as this, 50% of the affordable units have to be affordable to very low income household (VLI households with incomes that are less than or equal to 50% of county median income) and 50% of the affordable units have to be affordable to low income households (LI households with incomes above 50% and up to 80% of county median income). Page 3 low income households (5 VLI units) and 5 units that are affordable to low income households (5 LI units). In summary, the base case scenario consists of the following: 2 ¥ 61 rental units (15 Studio units, 25 one-bedroom units and 21 two-bedroom units) ¥ 10 affordable housing units (5 VLI units and 5 LI units) ¥ Commercial space of 969 square feet on the ground floor ¥ 61 garage parking spaces on the ground floor ¥ Inner courtyards and rooftop plaza Proposed Project– The proposed project is based on the development application for a six-story, mixed use apartment development with five levels of residential above one level of ground floor commercial and parking. The project applicant is requesting the following modifications to existing zoning: ¥ An additional density bonus of 59 housing units above what is allowed with a 35% Density Bonus (61 units consistent with the Base Case scenario plus 59 units, for a total of 120 units) ¥ Reduced parking to 1 space per unit as allowed under the State Density Bonus law ¥ A height bonus concession of an additional 7 feet, from 66 feet to 73 feet to mitigate flood impacts and facilitate the use of puzzle mechanical lifts for parking ¥ A waiver of the required five foot front setback along Third Street. As described in the staff report, the developer has significantly modified the original development application over the past three years in response to input from City Staff, the Planning Commission and the Design Review Board. While these modifications have enhanced the overall project design, they have reduced the amount of residential units and residential square footage that is able to generate rental revenues and increased construction costs, as further described in the next sections of this memorandum. As currently proposed, the Proposed Project consists of the following uses: 3 ¥ 120 rental units (33 Studio units, 44 one-bedroom units and 43 two-bedroom units) ¥ 12 affordable housing units (5 VLI units, 4 LI units, 3 Moderate Income or Mod units) ¥ Commercial space of 969 square feet on the ground floor ¥ 121 garage parking spaces on the ground floor including 112 mechanical parking lifts ¥ Inner courtyards and rooftop plaza The Proposed Project includes an increased amount of affordable housing units, 12 affordable units, which represents 27% of the 45 units allowed on the project site under existing zoning. Alternative 1– Alternative 1 is consistent with the development application for a six-story, mixed use apartment development. This scenario is substantively the same as the Proposed Project except that it contains additional affordable housing units as follows: ¥ 18 affordable housing units (10 VLI units and 8 LI units) The 18 affordable housing units in Alternative 1 represent 40% of the 45 units allowed on the project site under existing zoning. 2 https://www.cityofsanrafael.org/703-3/ 3 https://www.cityofsanrafael.org/703-3/ Page 4 B. Review of Developer Financial Assumptions and Pro Forma The financial analysis is based on a review of a summary financial pro forma analysis and supporting materials that were provided by the project applicant supplemented by additional data and analysis performed by the City of San Rafael and Seifel Consulting Inc. (Seifel). During the performance of this assignment, Seifel reviewed a series of confidential financial analyses, supporting documents and interviewed City staff, development team representatives and members of the real estate community (including developers, contractors, market specialists and architects) to perform due diligence. As described above, the financial feasibility of the development is evaluated under three development scenarios that include varying numbers of housing units and percentages of affordable housing. 1. Development Costs Development costs consist of the following key cost categories: land, hard construction costs, government fees, construction financing and other soft costs, such as project design. Some of these development costs are driven primarily by the site characteristics and construction type (such as hard construction costs) while others have a significant fixed-cost component (such as land costs). Seifel performed due diligence on each of the major cost components and found the following: ¥ Land costs– The cost of land in the financial analysis is based on the actual purchase cost for the property without any upward adjustment to reflect additional costs related to debt financing or equity that might be needed to raise sufficient funds to pay for land during the entitlement and/or construction period. The developer indicated that the site is currently generating income that is currently sufficient to pay annual land carrying costs. ¥ Hard construction costs– Hard construction costs include direct construction costs related to site work, building construction, parking, and general contractor charges for general requirements, general conditions, insurance, overhead and profit. Construction costs represent the majority of the development costs, and thus typically have a significant effect on feasibility. Nova Partners Inc. (Nova), a reputable construction estimator with considerable experience throughout the Bay Area, prepared the estimates based on new construction of a wood frame building constructed over a concrete, above-grade podium that includes ground floor retail, parking and a puzzle lift system. While the construction costs per unit and square foot are higher than what we have observed for other similar residential developments in the North Bay and San Francisco, we understand from Nova, VMWP and Seagate that the costs are higher for the following reasons: o The current Bay Area construction boom coupled with the rebuilding of fire-damaged areas across California, including Santa Rosa, has created a severe shortage of contractors and subcontractors in the North Bay and throughout the entire Bay Area. According to construction specialists, this has resulted in construction costs increasing at double-digit rates in recent years. o The property is a tight urban site with surrounding developments on all sides, which increase the costs for staging, ingress/egress and safety features. o The property is located in a FEMA flood plain and has other unique site conditions that increase site improvement, foundation and building construction costs due to increased heights for the ground floor and the overall building. Page 5 o In order to achieve a 1:1 parking ratio, a mechanical parking system is required, which requires an extra tall ground floor to accommodate a triple stacked automated parking system. This adds to the foundation and concrete wall cost to build the base “box.” o The developer has made many changes to the building design, exterior finishes and materials at the request of City staff, the Design Review Board, Planning Commission, and various community homeowner groups. These modifications have reduced building efficiencies, decreased building square footage and increased costs in the following ways. o The addition of the exterior balconies substantially increases the cost of the exterior skin and reduces the amount of rentable building space, which means that the building-wide costs can only be spread over a smaller amount of residential square footage. o The stepping back of the top floors adds greater costs to structural design as well as the exterior skin of the building. The step back typically requires structure loads to be carried down to the ground floor with a steel frame that extends from the 5th to the ground floor. The step back also reduces the amount of rentable building space, which in turn reduces potential apartment income. o As this urban infill site does not have the ability to incorporate open space at grade, the building includes an extensive roof deck that significantly increases the weight on the upper floor, requires waterproofing, necessitates upgraded roof materials, and incorporates specialized landscaping features and upgraded aesthetic finishes. o Given the building design and site conditions, skilled trades would be used to build most of the building component parts, likely incorporating a high proportion of skilled union labor. ¥ Government fees– The project sponsor will be required to pay City planning and development impact fees (such as building permit fees, planning fees and development impact fees) as well as fees that are required to be paid to other government entities (such as fees for schools, water and sewer provision). The City worked with the project applicant and provided a current cost estimate for these government fees based on published fee schedules to be used in the financial analysis.4 ¥ Construction Financing– Construction financing typically represents the major source of capital that pays for development costs during construction. The construction financing assumptions used in this analysis are generally representative of current construction financing terms for similar projects in the North Bay and San Francisco. ¥ Other Soft Costs– Other soft costs include predevelopment costs (such as environmental review), architectural design, engineering services, legal fees, marketing, and other professional fees paid by the developer. The total development costs projected in the developer’s financial pro forma analysis are considered to be within a reasonable range for new residential development. However, as further described below in the last section, a sensitivity analysis was conducted to see how the financial results would differ under alternative development cost scenarios. 4 This updated analysis assumes that the City’s transportation impact fees would not need to be paid on the affordable housing units, which slightly decreases the total amount of government fees as compared to the February analysis. Page 6 2. Revenue Generation Revenues for the project come primarily from rental of the apartments. The future rental of ground floor retail space, as well as the leasing of a small number of parking spaces, is projected to generate a small amount of commercial revenue.5 The Concord Group (TCG), real estate and market specialists with considerable experience in evaluating the market for similar developments in the Bay Area, performed a market analysis that provided excellent market data on residential apartments and the competitive market for homes that might be rented or sold to potential residents. Given recent market conditions, market rent levels are unlikely to be significantly higher than what is being projected by TCG given rental rates at comparable apartment buildings and the relative cost of ownership housing in North Bay cities. Rents for affordable units are based on the recently updated 2019 schedule for affordable rents at below market rents (exclusive of utility costs) that would be affordable to households at various target income levels based on areawide median income (AMI) for the County of Marin.6 Based on guidance from City staff and the applicant’s proposal, the financial pro forma assumes that the affordable rents for VLI units would be affordable to households at 50% AMI, affordable rents for LI units would be calculated at 70% AMI and affordable rents for Mod units would be calculated at 120% AMI. The City has the discretion to allow alternative rent levels to be applied as part of the development approval process with the exception that at least five units must be affordable to households at 50% AMI in accordance with State Density Bonus Law. The market rent and affordable rent assumptions by unit type are held constant across all scenarios. 3. Development Value Based on a typical valuation method that appraisers use to value properties, future development value is projected by capitalizing the annual net operating income (NOI) from the property using a market-based capitalization rate. (This is equivalent to dividing annual NOI by the cap rate.) Net operating income is equal to projected revenues less an allowance for vacancy less annual projected operating expenses. (Operating expenses include property management, administration, staff salaries, insurance, building maintenance costs, property taxes, and other operating expenses.) For this analysis, a standard 5% vacancy allowance is applied to residential rental units to account for both vacant units and turnover as one renter leaves and another moves in. The project applicant provided operating expenses projections for the proposed development based on their experience in managing properties in San Rafael and other western cities. Their assumed operating expenses are lower on a per unit basis than what we have observed for other multifamily residential developments in the Bay Area, but we understand that Seagate anticipates being able to achieve operating efficiencies at this development given its scale and their other properties in the area. 5 Parking revenue is anticipated to be minimal given current market conditions in Southern Marin County where most apartment developments provide at least one parking space per unit at no additional charge. Commercial income is projected to represent about 1% of total revenues. 6 The affordable or BMR rents are based on a household income and rent schedule provided by the County of Marin, which advises on the City of San Rafael’s housing programs. The rent schedule shows affordable rents for households at different household income levels for each bedroom type based on a percentage of areawide median income. The assumed rents for the affordable units are reduced to reflect a standard utility allowance for each unit type by bedroom size. Page 7 As described previously, design modifications have decreased the amount of leasable residential square feet, and they have also made the building less efficient from an operating and leasing perspective. This coupled with the provision of affordable housing constrains revenue generation. The future value of the development is projected under two valuation scenarios: ¥ The first scenario uses a cap rate of 4.5%, consistent with what was assumed in the developer’s financial pro forma. This is a reasonable cap rate assumption for pro forma purposes given the project location and anticipated timing for development. ¥ To test feasibility, a lower cap rate of 4.25% was also used, as this could be achievable given the project’s location in Southern Marin County where little new development has occurred. The use of a lower cap rate yields a higher development value, which increases potential developer margin. As the developer did not assume any sales transaction expense in their pro forma, no deduction is made for these costs. Often, sales transaction expenses (such as brokerage fees and title/recording fees) can range between 2% to 3% of development value for apartment buildings, which would reduce net revenues to the developer from the development. The combination of lower than average operating expenses and no allowance for sales transaction costs means that the potential development value may be lower than projected in this analysis. 4. Return Metrics Developers, lenders and investors evaluate and measure returns in several ways. Based on input from real estate developers, equity investors and lenders, development returns are based on two key measures typically used by the real estate community. a. Developer Margin and Margin on Cost Developer margin is equal to the difference between net development value and total development costs (before consideration of developer return or profit).7 A developer will not proceed to build a project unless the project generates sufficient developer margin to warrant the risk and private investment needed to undertake the project. Developers and investors use different target return thresholds depending on the level of complexity of the project, construction types, construction schedule, sales/rental absorption timeline and potential equity sources. Projects with a greater number of units, complexity of construction and longer timelines have higher risk and as a result require a higher margin on cost. This type and size of mixed-use development would likely have a margin on cost threshold that ranges between 18–25%, as measured by developer margin or return divided by development cost.8 b. Yield on Cost Yield on cost (YOC) or stabilized yield is used to evaluate development feasibility for apartment development. 9 YOC is measured based on Net Operating Income (NOI) divided by development costs.10 NOI is equal to projected rental revenues less vacancy allowance less operating expenses. 7 Net development value equals gross development value less transaction expenses. 8 This is equivalent to a return threshold of about 15% to 20% when measured as return on net revenues. This developer margin/return needs to take into account potential changes in costs and revenues. 9 This return metric is also referred to as return on cost by real estate developers, lenders and investors. 10 These return metrics are considered the typical “back of the envelope” way of determining real estate feasibility and are typically based on current rent and cost assumptions (not trended upward to reflect potential future increases). Page 8 The target YOC for apartments in the North Bay and San Francisco over the past decade has ranged from 5% to 7% based on a review of project pro formas and discussions with developers and equity investors. Currently, developers and investors are using a target 5.5% YOC threshold in the surrounding market area. However, some private owners and investors may be willing to accept lower return thresholds and will move forward with providing debt and equity capital for developments like 703 Third Street in markets like Southern Marin County that has growing housing demand and limited apartment production. C. Financial Feasibility Findings The financial analysis compares the anticipated revenues and project value that could be generated by the development with the development costs under each of the development scenarios described above in order to test the overall financial feasibility using typical return measures. Based on the projected development revenues and costs described earlier, the financial analysis indicates the following: ¥ The Base Case Scenario is not financially feasible based on the development revenue and cost projections used in the developer’s financial pro forma, as the developer margin is negative (meaning that development costs exceed revenues). ¥ Construction cost savings could potentially be achieved with modification of the proposed design features, additional value engineering or the use of more innovative construction methods. However, even if construction costs could be lowered by 10% to 15%, the Base Case Scenario is not feasible as the developer margin is still significantly negative under both valuation scenarios. ¥ Financial feasibility of the Proposed Project is enhanced by the significant addition of units with the additional density because revenues increase and development costs can be spread among a greater number of housing units, which results in: o Lower land costs per unit o Lower construction costs per unit, achieved by facilitating more efficient construction across a larger building envelope and spreading the cost of the concrete podium among more units o Lower government fees per unit for fees that do not vary based on numbers of units o Lower soft costs per unit, such as fixed predevelopment, design and engineering costs o Higher average revenue per unit due to the addition of market rate units. ¥ While the Proposed Project Scenario generates a positive developer margin based on the development assumptions used in the financial pro forma, it does not achieve a high enough developer margin or Yield on Cost to be feasible according to the typical return metrics described above. Development costs would need to be significantly reduced and a higher valuation achieved in order for the Proposed Project to achieve adequate return levels. As described earlier, the final design of the Proposed Project includes a number of important design features that add significant construction costs, so it may be difficult to achieve substantial cost savings. ¥ Given the significant reduction in revenues from doubling the number of affordable housing units, Alternative 1 is not financially feasible based on the development assumptions in the financial pro forma and with a higher assumed valuation. (The developer margin/return is negative as development costs exceed revenues.) It’s unlikely that construction costs can be lowered to the extent necessary to achieve feasibility under Alternative 1. In conclusion, the financial feasibility analysis presented above indicates that the proposed development is not financially feasible under the Base Case scenario or Alternative 1. The additional density and housing units being requested in the application for the Proposed Project enhances financial feasibility by reducing development costs per housing unit as described above. Based on the financial analysis described in this memorandum, we find that the higher density and greater number of units provided in the Proposed Project would be necessary to achieve financial feasibility.