Loading...
HomeMy WebLinkAbout12/19/2013MINUTES •; THE CITY •i DIAMOND BAR SPECIAL MEETING • THE PLANNING COMMISSION DECEMBER 19, 2013 Vice Chairman Frank Farago called the special meeting to order at 7:00 p.m, in the City Hall Windmill Room, 21810 Copley Drive, Diamond Bar, CA 91765. PLEDGE OF ALLEGIANCE: Commissioner Dhingra led the Pledge of Allegiance. 1 ROLL CALL: Present: Commissioners Ashok Dhingra, Jack Shah, and Vice Chairman Frank Farago Absent: Commissioner Jimmy Lin was excused. Also present: Greg Gubman, Community Development Director; Dave DeBerry, City Attorney; Grace Lee, Senior Planner; Natalie Tobon, Assistant Planner; and Stella Marquez, Administrative Coordinator. 2. MATTERS FROM THE AUDIENCE/PUBLIC COMMENTS: None 3. APPROVAL OF AGENDA: As presented 4. CONSENT CALENDAR: 4.1 Minutes of the November 26, 2013 Regular Meeting. C/Dhingra moved, C/Shah seconded, regular meeting minutes as presented. vote: AYES: COMMISSIONERS: NOES: COMMISSIONERS: ABSENT: COMMISSIONERS: 5. OLD BUSINESS: None 6. NEW BUSINESS: None 7. CONTINUED PUBLIC HEARING(S): to approve the November 12, 2013, Motion carried by the following Roll Call Dhingra, Shah, VC/ Farago None Lin 7.1 Conditional Use Permit No. PL2013-380 — Under the authority of Diamond Bar Municipal Code (DBMC) Section 22.58 the applicant, James Hahn, Diamond Bar CrossFit, requested approval of a Conditional Use Permit for a 3,000 square -foot fitness studio in a 36,454 square foot shopping center. The DECEMBER 19,2013 PAGE 2 SPECIAL MEETING PLANNING COMMISSION subject property is zoned Regional Commercial (C-3) with a consistent underlying General Plan land use designation of General Commercial (C). PROJECT ADDRESS 303 S. Diamond Bar Boulevard, Unit M Diamond Bar, CA 91765 Phoenix Gluck LP 210 Santa Monica Boulevard Santa Monica, CA 90401 APPLICANT: James Hahn 303 S. Diamond Bar Boulevard, Unit M Diamond Bar, CA 91765 AP/Tobon presented staff's report and recommended Planning Commission approval of Conditional Use Permit No. PI -2013-380, based on the Findings of Fact, and subject to the conditions of approval as listed within the resolution. CDD/Gubman stated that the owners of the Kmart portion of this site contacted him to express concerns about available parking for the Kmart Center. Looking at the aerials it appears that when one is on the site that Kmart and the inline building where CrossFit and other tenants are located are part of a single shopping center. The site is actually comprised of two parcels. The aerial photo shows how the parking lot is not heavily burdened with vehicles. VC/Farago opened the public hearing. James Hahn, owner of Diamond Bar CrossFit, thanked AP/Tobon for working with him and his partner to determine how best to operate in a legal and lawful fashion. As soon as they were notified that they were operating outside of the legal bounds they immediately commenced to rectify and comply with the mandates of the City. With respect to Kmart's concern about the impact to the parking on their side of the parcel, he stated with certainty having worked with each member individually, that none have ever or will ever park on the Kmart side unless they are in need of Kmart goods and services. C/Dhingra asked if the owners accept the conditions of approval including the condition to remove the existing banner and replace it with a permanent sign by January 17, 2014, and Mr. Hahn responded affirmatively. VC/Farago closed the public hearing. RECEMBER 19, 2013 PAGE 3 SPECIAL MEETING PLANNING COMMISSION C/Shah asked if the parking requirement identified by staff (total 36,454) is for the yellow highlighted area and AP/Tobon responded affirmatively stating that all of the parking for the center is calculated together except for Diamond Bar Crossfit which is separated out. C/Shah moved, C/Dhingra seconded, to approve Conditional Use Permit No. PI -2013-380, based on the Findings of Fact, and subject to the conditions of approval as listed within the resolution. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Dhingra, Shah, VC/ Farago NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Lin 7.2 Tentative Tract Map No. 72351 and Development Review No. PL2013-282 — Applicant Preston Chan, CGM Development, Inc., requested approval of a Development Review to modify the exterior fagade and add a 799 square foot lobby area to an existing 25,864 square foot office building on a 1.40 gross acre lot. A Tentative Tract Map was also requested to convert the existing building into office condominiums and subdivide air space for 19 units. The property is zoned Office Professional (OP) with an underlying General Plan land use designation of Commercial Office. PROJECT ADDRESS NWVIZX. ��Wll 660 N. Diamond Bar Boulevard Diamond Bar, CA 91765 Peichin Lee DB Office Investment, LLC 17528 E. Rowland Street City of Industry, CA 91748 APPLICANT: Preston Chan CGM Development, Inc. 17528 E. Rowland Street City of Industry, CA 91748 SP/Lee presented staff's report and recommended that the Planning Commission adopt the resolution approving Development Review No. PL2013-282 based on the findings of Diamond Bar Municipal Code Section 22.48 and subject to conditions. Staff also recommended adoption of the resolution recommending approval of Tentative Tract Map No. 72351 to the City Council, based on the findings of Diamond Bar Municipal Code P,ECEMBER 19,2013 PAGE 4 SPECIAL MEETING PLANNING COMMISSION Section 22.20.080, subject to the conditions of approval as listed within the draft resolution. C/Shah asked if staff required a traffic analysis report and where it got the trip generation information. AP/Lee responded that the applicant's traffic engineer prepared a response stating that the medical office uses would generate less than 200 trips which falls under the threshold that would trigger a traffic analysis report. C/Shah asked if the new elevator would accommodate a gurney. AP/Lee said she is not aware of those details; however, the applicant has concurrently submitted for building plan check and the plans were reviewed by Building and Safety Department. C/Dhingra asked for confirmation of the parking area requirements based on square footage of the building. CDD/Gubman responded that the square footage should be 26,663. However, the parking calculations are based on the subtotal square footages and associated parking ratios. Although there is a typographical error in the total square footage all other calculations and measurements are correct. C/Dhingra thanked staff for the clarification. VC/Farago opened the public hearing. With no one present who wished to speak on this item, VC/Farago closed the public hearing. C/Dhingra moved, C/Shah seconded, to adopt the resolution approving Development Review No. PL2013-282 based on the findings of Diamond Bar Municipal Code Section 22.48 and subject to conditions. C/Dhingra moved, C/Shah seconded to recommend adoption of the resolution recommending approval of Tentative Tract Map No. 72351 to the City Council, based on the findings of Diamond Bar Municipal Code Section 22.20.080, subject to the conditions of approval as listed within the draft resolution. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Dhingra, Shah, VC/ Farago NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Lin 7.3 Zone Change No. PL2013-603 — Under the authority of Diamond Bar Municipal Code Chapter 22.14, the City proposes to establish an overlay zoning district, hereafter titled the "C-3-PD/Hotel Overlay" ("Overlay") to promote and facilitate the orderly redevelopment of a prominent freeway off -ramp adjacent site formerly occupied by an automobile dealership in a manner consistent with the DECEMBER 19, 2013 PAGE 5 SPECIAL MEETING PLANNING COMMISSION City Council's adopted Goals and Objectives, most notably the Fiscal Responsibility/Economic Development goal which states: "Identify and implement development opportunities for the former Honda property that will result in the greatest net benefit to the community." If the proposed zone change is adopted, any land use plan formulated within the Overlay shall include a hotel as the primary use. Secondary uses shall be limited to those already permitted or conditionally permitted in the underlying C- 3 district, except for uses expressly prohibited in the Overlay, existing buildings within the Overlay may be occupied by uses permitted or conditionally permitted in the C-3 district, except for such uses that are expressly prohibited in the Overlay, without a hotel as the primary use provided that no existing building is enlarged and no new buildings are established. PROJECT ADDRESS: Northwest Corner of the SR60/ Grand Avenue Interchange LEAD AGENCY/ City of Diamond Bar PROJECT APPLICANT: Community Development Department 21810 Copley Drive Diamond Bar, CA 91765 CDD/Gubman stated that the subject property is the old Honda site. Prior to its closure in mid -2008 this was the site of a very successful Honda Dealership, and a Burger King restaurant that closed last year. The Honda Dealership was, by far, the City's highest tax revenue generator and it closed because corporate compelled the dealer to modernize and enlarge its facility which resulted in a move to a new location outside of the City resulting in the vacation of the Diamond Bar site. Since that time, the City has been very concerned about that fate of the property and has pursued economic development opportunities that are uniquely suited and afforded to the site such as freeway visibility and adjacency to the SR57/60 freeway convergence that supports over 300,000 vehicles per day, as well as, its proximity to the off ramps at Grand Avenue. Since the dealership closed, there has been no viable tenant to reoccupy the site. For a short time, CarMax was interested in a smaller satellite concept that fell by the wayside. Since that time, there has been no viable proposal for the site. The City received inquiries about establishing uses that were not in the City's best interest. In light of the fate of the surrounding areas located in the City of Industry (concurrent mutually exclusively entitlements for an NFL Stadium as well as, a 594 acre business park) Diamond Bar wanted to ensure that it protected one of its very limited contributors to the commercial inventory. As a result, in 2011 the City placed a moratorium on the property to allow the study of opportunities for the site and to hopefully work collaboratively with the DECEMBER 19, 2013 PAGE 6 SPECIAL MEETING PLANNING COMMISSION property owners in seeking the highest and best use potential which is challenging and complicated to an extent by the uncertainty about what will happen on the adjacent City of Industry site. Staff anticipates that in February/March 2014 there will be a final decision about the possibility of an NFL Stadium being built and if the stadium does not go forward, Majestic Realty has indicated that they will proceed with the alternative Industry Business Center (IBC). Due to the vulnerability of this uniquely situated site, the City Council set forth an economic development goal of identifying specific development opportunities and Specific Plans to revitalize the Kmart and Honda sites to provide the greatest net benefit to and best interests of, the community. In order to accomplish this goal, the City contracted with economic development consultant AECOM, a major firm with an international reputation, to prepare a municipal highest and best use analysis for the property to determine what would benefit the community's best interest and be mindful that whatever occurs on this site would need to result in a positive residual land value offering for a developer's consideration. The revenue -generating opportunities for the City would include retail uses which would include a vast array of revenue generating businesses and hotel uses that would provide revenue to the City via Transit Occupancy Tax. The consultant was also asked to look into the feasibility of office development based on the theory that office uses generate rent which may help a developer subsidize other uses on the site that may have higher capital development costs. In light of the various uses that may occur on the surrounding site, the study looked at three base scenarios: 1) Status quo (nothing occurs on the adjacent site for the foreseeable future; 2) development of the IBC project and, 3) development of the NFL Stadium. The consultants looked at the physical capacity of the site, the surrounding market to identify demand potentials and performed site capacity modeling to determine what the intensities, square footages, etc. the site could support. The tests and forecasted economic conditions revealed that retail was not a very strong option for the site because the inventory and capacity of existing retail properties would not attract additional retail to the site. Under status quo conditions, the Gateway Corporate Center generates a great deal of business travel which would support a 190 room hotel and under the best economic conditions an additional 125 rooms would be supported. If the IBC project becomes a reality, up to 405 additional rooms would be supported because of the additional corporate headquarters and business activity resulting from the uses. Under the stadium scenario, hotel demand would increase but it would be lower than the IBC development because the stadium would have less office development as part of its overall use plan and attendance. Therefore, from the City's revenue perspective, the IBC development would be most beneficial. However, if the stadium is built there is a settlement agreement with the City of Industry that DECEMBER 19, 2013 PAGE 7 SPECIAL MEETING PLANNING COMMISSION would provide a number of economic benefits to the City such as a $20 million lump sum and an ongoing revenue stream of $750,000 to well in excess of $1 million based on the number of stadium events. The conclusion of the analysis is that the highest revenue generating potential for the site would be through Transit Occupancy Tax. Also provided in the "highest and best use" analysis is an overall evaluation of the net benefits (direct and indirect revenue and benefits) to the community under the different scenarios. Based on the conclusions, staff has developed the recommended ordinance which is an exhibit to the resolution that establishes a freeway Overlay on the Honda property, The requirements of the freeway Overlay are that the existing buildings onsite are subject to the existing C-3 zoning standards so that they may be occupied with uses that are permitted in the C-3 zone. However, no new buildings or expansions to the existing buildings would be permitted unless a redevelopment plan for the site is crafted and adopted that would establish a hotel as a component of the development. There are provisions that would allow other uses to be phased in prior to the hotel but the hotel would have to be under construction before any of the supporting uses could be occupied. Another interesting finding of the "Highest and Best Use Analysis" revealed that an office would not add to the viability of the site and would actually be a drain on the site because the construction costs and parking requirements for office development would run up the costs and the prevailing rents in the immediate area would not be high enough to make office space a viable use. As a result, staff believes a hotel only with supporting commercial such as restaurants and possibly a gas station would be the most desirable land use plan for a developer and accordingly, staff has crafted the standards to more tightly direct development to evolve in the City's best interest. The findings of this report are compelling enough that the City, hopefully in partnership with the property owners, will market the site to hotel developers. Staff will use the ICSC Conference in Las Vegas in 2014 and other ICSC events as well as other marketing venues and resources in an effort to attract hotel development on the site. The City is concerned about its current inventory of commercial land and wants to lock down the options to protect the site from being developed with uses that may not produce the desired results articulated in the City Council's adopted Goals and Objectives. Staff recommends that the Planning Commission adopt a resolution recommending that the City Council change the zoning of the Honda site to C-3-PD/Hotel Overlay to be the governing zoning regulations for the Honda property. VC/Farago opened the public hearing. DECEMBER 19,2013 PAGE 8 SPECIAL MEETIRG PLANNING COMMISSION Alex Tau (aka Alex Sukamtoh), 23603 Palomino Drive, asked what kind of hotel would provide 190 rooms. If the City of Industry builds the IBC, there will be more empty buildings. He wanted to know the current occupancy rate and room rate of the current hotels in Diamond Bar and asked why the City was in a hurry to make this decision before finding out if the stadium would be built. He felt the site would be a good location for a hospital. Jim Tsai, 550 Great Bend, said he agreed with Mr. Tau that the City may want to delay this decision because of the Caltrans project to consider eminent domain to realign or split the SR57/60 freeway merging and dedicated on and off ramps at Grand Avenue if the stadium is built. VC/Farago closed the public hearing. C/Shah said he heard on the radio that there would not be a decision about the downtown LA stadium until August 2014. C/Shah asked if AECOM researched other possible uses for the site. CDD/Gubman stated that in the AECOM study, the hotel analysis begins on Page 27. Table 19 through Table 22 shows a comprehensive inventory of the supply of room nights, occupancy rates, average daily rates and inventory of different hotel products with distances and classifications. The conclusion drawn from that analysis was that the room demands, based on the existing supply and different scenarios given a range of economic conditions in the future, the hotel demand was derived. The City did not look at or consider a hospital use and CDD/Gubman suggested that the Lanterman facility is more likely to be a superior hospital site to the Honda site, which is not physically situated to accommodate intensive hospital uses. With respect to the fate of the stadium, staff understands that Majestic Realty has building permits in hand to build the stadium. The NFL manages to keep everyone in suspense but Majestic needs to know by this winter what the NFL wants to do and if the NFL cannot decide, then Majestic needs to move forward with other plans. This matter has been pending since 2008. With respect to why this matter is being rushed without waiting to see what the outcome is, the City's posture is "why put it off any longer." The City has very compelling information that a hotel product is the highest and best use. The type of hotel will have to be vetted through a more refined analysis. There might be two hotel products that could be placed on this site. It will depend on the operator, their tolerance for risk and other considerations and factors that such companies would need to take into account. The bottom line is that whatever scenario plays out the City has the data to support the hotel as the "highest and best use" and in order to further the Council's Goals and Objectives and the investment the City put into funding WECEMBER 19, 2013 PAGE 9 SPECIAL MEETING PLANNING COMMISSION this study, staff is ready to move forward to establish the zoning overlay and commence to aggressively market the site. C/Shah felt the current hotel occupancy rate was low. Fie felt there was no compelling reason to decide on a use at this time but there is a compelling reason to further investigate any other uses that might be beneficial to the City. C/Dhingra commented that staff's presentation and analysis was very well done. The basis for this proposal, as stated by CDD/Gubman, is that there is very little commercial land available within the boundaries of Diamond Bar and this proposal is an effort to protect the City's assets and make the best use of them. If, by changing the use to an "Overlay" zone gives the City better opportunities for marketing, he feels it is the right avenue. Secondly, he believes the direction from the City Council with respect to the Goals and Objectives is to look at the net benefit of this proposal to the community which is outlined in the study commissioned by the City. Tables within a study are snapshot of conditions. As economic conditions change, so too will the tables change and no one has a crystal ball when it comes to predicting the future. The study looked at existing hotels within the City as well as hotels in cities adjacent to Diamond Bar and the homework has been done. Diamond Bar cannot afford to wait for Caltrans or City of Los Angeles to determine what they are going to do. If rezoning this property gives Diamond Bar the flexibility to market the property better it should be done now. With respect to other uses, whoever wants to develop this property will do a thorough financial and viability analysis based on the market conditions existing at that time. The City is not in the business of doing that — the City is only interested in making it to a point that the land can be developed to the best net benefit of the City. If someone were to analyze the situation and determine another "best" use that entity can always apply for a zone change at that time. But at this time the City needs to act now to protect its assets and meet its goals and objectives in such a way as to protect the best possible net benefit to the City. VC/Farago asked if there was a planned freeway expansion that a prospective developer would be able to take under consideration when proposing a development. CDD/Gubman responded affirmatively and said he regretted not having included the latest freeway interchange improvement plans which would have answered those questions and proceeded to explain how the expansion would work using the aerial. The first phase is the construction of an onramp onto the SR60 westbound which will slice into the southern edge (a sliver of about .7 acres along the southern end) of the Honda property and take away the current freeway sign. It will require the driveway access to Burger King to be closed off and the driveway from Grand Avenue will remain in place. Phase I is funded and construction documents are nearly ready to move forward in DECEMBER 19, 2013 PAGE 10 SPECIAL MEETING PLANNING • i. .. • about 14 months. The next phase of the project will be a new Grand Avenue off ramp which will cut into the golf course. There is a plan to reconfigure the tee boxes for the golf course. No holes will be lost. There will also be a sliver that will come off of the edge of the golf course to improve the onramp with two right turns into the freeway instead of the one right turn that is creating a bottleneck. The loop ramp and slip ramp will be shifted up and Old Brea Canyon Road will align with the ramp to improve capacity. These plans are firm and it is a matter of time and funding for completion and we know what will happen to the Honda property as a result of those pending improvements. VC/Farago asked about future plans for separation of the SR57/60. CDD/Gubman responded that this project is termed the "Big Fix" and there are some pieces of the Big Fix that are occurring upstream and downstream. Shortly before or after this piece happens, the Lemon Avenue interchange will be completely reworked. The current on and off ramps on Golden Springs will be taken out and new on and off ramps at Lemon Avenue will go in. The real challenge for which there is no design is to physically separate the 57 and 60 freeways. There is a conceptual plan to accomplish that in the Sunset Crossing area that would involve a flyover near the park and ride on the easterly side of Diamond Bar Boulevard but that is where things begin to get vague. C/Shah suggested that staff revise the report to include the freeway interchange improvements and analysis of other alternative uses even though it may not be to the benefit of the City. He does not believe there is a compelling reason to decide here and now and believes this matter should be deferred to a future meeting. C/Dhingra moved, VC/Farago seconded, to recommend that the Planning Commission adopt a resolution recommending City Council approval of Zone Change No. PL 2013-603. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Dhingra, VC/ Farago NOES: COMMISSIONERS: None ABSTAIN: COMMISSIONERS: Shah ABSENT: COMMISSIONERS: Lin 8. PLANNING COMMISSIONER COMMENTS/INFORMATIONAL ITEMS: C/Dhingra wished everyone a Joyous Holiday Season and a very Happy New Year. VC/Farago wished the audience, staff and his colleagues a Merry Christmas and Happy New Year. DECEMBER 19, 2013 PAGE 11 SPECIAL MEETING PLANNING COMMISSION 0 W 9.1 Public Hearing dates for future projects. CDD/Gubman stated that the Commission's scheduled meeting on December 24 is canceled due to City closure and the next regular Planning Commission meeting will take place on Tuesday, January 14, 2014. Two items are set for the agenda: 1) the Kaiser expansion in Gateway Corporate Center and 2) an addition to a single family residence on Gemdal Street. In addition, the Commission will make its presentation of a plaque to Tony Torng for his service on the Commission. Unfortunately, due to a prior commitment, CDD/Gubman said he would not be able to attend that meeting and SP/Lee will staff the meeting in his stead. CDD/Gubman wished everyone Happy Holidays, Merry Christmas, and a Happy New Year on behalf of the entire City staff. SCHEDULE OF FUTURE EVENTS: As listed in tonight's agenda. ADJOURNMENT: With no further business before the Planning Commission, Vice Chairman Farago adjourned the regular meeting at 8:25 p.m. ,The foregoing minutes are hereby approved this 14th day of January, 2014. Attest: Respectfully Submitted, Greg Gubman Community Development Director