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HomeMy WebLinkAboutReso25-19_2130 E Fourth StResolution No. 2025-19 Page 1 of 13 RESOLUTION NO. 2025-19 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA APPROVING THREE (3) CONCESSIONS AND A WAIVER OR REDUCTION OF A DEVELOPMENT STANDARD PURSUANT TO STATE DENSITY BONUS LAW TO BE MEMORIALIZED IN DENSITY BONUS AGREEMENT NO. 2025-03 TO ALLOW A FIFTEEN- UNIT MULTI-FAMILY DEVELOPMENT FOR THE PROPERTY LOCATED AT 2130 EAST FOURTH STREET (APN: 400-091-23) BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. Donald Verleur (“Applicant”), with Olive Crest (“Property Owner”), is requesting approval of Density Bonus Application (DBA) No. 2025-03 to allow the construction of a fifteen-unit multi-family residential development, including three units proposed as affordable to very low-income households earning less than 30-50 percent of the area median income (AMI), at the property located at 2130 East Fourth Street (“Project”). B. California Senate Bill 330, the Housing Crisis Act of 2019 (HCA), amending the Permit Streamlining Act and the Housing Accountability Act, became effective on January 1, 2020, and established a statewide "housing emergency" until January 1, 2025. C. On January 1, 2022, the HCA was extended until January 1, 2030, with the passage of Senate Bill 8. D. The proposed development is being submitted as a Senate Bill No. 330 (SB 330) application. In consultation with City Staff, the Applicant has selected the Village Center district zoning designation within the Metro East Use Overly Zone (MEMU) as the proposed zoning for the Project. E. As an SB 330 project, the Project is not subject to the Site Plan Review requirements pursuant to Sections 2.3 and 8.1 of the MEMU. The Project will be developed pursuant to the underlying District Center-Medium High (DC-3) General Plan land use designation. F. The MEMU was adopted in 2007 to encourage mixed-use residential and commercial development. The overlay district was later expanded in 2018. The regulating plan, which establishes land uses and development Resolution No. 2025-19 Page 2 of 13 standards, allows a variety of housing projects, including multi-family and mixed-use residential communities, as well as live/work units. G. The proposed Project conforms to a majority of the development standards of the Village Center district of the MEMU with the exception of publicly accessible open space, private/common open space, building frontage, and parking requirements. The Applicant is seeking concessions or incentives, and a waiver or reduction in development standards pursuant to Section 65915 of the California Government Code. H. The California Density Bonus law allows developers to seek increases in base density for providing on-site housing units in exchange for providing affordable units on site. To help make constructing on-site affordable units feasible, the law allows developers to seek incentives/concessions or waivers or reduction of development standards. I. The Applicant’s request has been evaluated by the City’s Development Review Committee (“DRC”) through Development Project No. 2023-32. Through this review, the DRC has considered the subject site, proposed development, and the Applicant’s request for concessions, incentives, and waiver or reduction in a development standard. J. On June 9, 2025, the Planning Commission of the City of Santa Ana held a duly noticed public hearing and at that time considered all testimony, written and oral. K. Section 41-1607 of the Santa Ana Municipal Code (SAMC) requires that deviations (incentives/concessions and/or waivers or reductions) be approved by the Planning Commission. L. The Planning Commission determined that the following findings, which must be established in order to grant a deviation pursuant to SAMC Section 41-1607 have been established for Density Bonus Agreement No. 2025-03 to allow construction of the proposed Project: 1. That the proposed development will materially assist in accomplishing the goal of providing affordable housing opportunities in economically balanced communities throughout the city. The proposed Project will provide fifteen rental housing units, including three units designated for very low-income households earning between 30-50 percent of the Area Median Income (AMI). This affordability commitment exceeds the goals of the City’s Affordable Housing Opportunity and Creation Ordinance (AHOCO) by 100-percent. Moreover, the Project will serve transitional aged youth (TAY), a vulnerable population that includes individuals aging out of foster care, Resolution No. 2025-19 Page 3 of 13 exiting the juvenile justice system, or experiencing homelessness. By expanding the City’s rental housing stock for deeply affordable housing the Project will contribute to the City’s efforts to provide economically inclusive, balanced communities and will help address a critical service gap identified in the General Plan Housing Element. Moreover, by introducing affordable housing the Project contributes to an economically balanced community, ensuring that individuals and families across different income levels and demographics have access to quality housing. Lastly, its strategic location within an area rich in employment opportunities, commercial developments, and existing market-rate housing further enhances its role in fostering a well-rounded, sustainable, and thriving urban environment. 2. That the development will not be inconsistent with the purpose of the underlying zone or applicable designation in the general plan land use element. The Project is located within the District Center – Medium High (DC-3) General Plan designation and the Professional (P) zone within the Metro East Mixed Use (MEMU) Overlay Zone. While the base zoning is oriented toward professional and office uses, the MEMU overlay and the City’s compliance with State Senate Bill 330 allow for residential development consistent with the DC-3 land use designation. The DC-3 designation is intended to support urban, mixed- use, and employment centers that are well connected to public transportation and provide opportunities for new urban- scale development. It encourages a mix of uses, including medium to urban density housing types (e.g., condominiums, apartments, and townhomes), professional and multilevel corporate offices, as well as retail, cultural, and recreational amenities. Both horizontal and vertical mixed-use configurations are permitted, supporting integrated urban neighborhoods. The Project is consistent with the DC-3 designation as it introduces a fifteen-unit multi-family residential development, including three units designated for very low-income households, on a site currently occupied by professional offices. The development represents a horizontal mixed-use configuration, with residential units integrated alongside the existing Olive Crest office facilities. Resolution No. 2025-19 Page 4 of 13 The Project maintains compatibility with surrounding uses, including nearby medical and professional offices, as well as multifamily residential to the south, while promoting transit accessibility and walkability. Moreover, the Project’s scale, design, and mix of uses advance the goals of the DC-3 designation by supporting infill housing, expanding residential opportunities in an employment-rich area, and contributing to a vibrant, urban activity center. The proposed density, at 46.87 du/ac is well within the 90 du/ac maximum allowed under the DC-3 designation, further reinforcing consistency with the General Plan. 3. That the deviation is necessary to make it economically feasible for the Applicant to utilize a density bonus authorized for the development pursuant to section 41-1603. The proposed Project requires three deviations through incentives/concessions: publicly accessible open space, private open space, and parking requirements; as well as one deviation from a waiver in the common open space requirements. The four deviations are described as follows: Publicly Accessible Open Space (Incentive/Concession) Section 4.5 (Publicly Accessible Open Space) of the MEMU states that a minimum of ten-percent of the gross site area (115,029 square feet) is required to be dedicated to publicly accessible open space. Instead, the Project provides no accessible open space. Providing the required publicly accessible open space would reduce the total number of units that can be developed, reduce the overall number of surface parking on the site, and/or impact the drive aisle area, compromising the Project's feasibility and safety for residents and emergency responders. Moreover, given the existing office building development location, limited drive aisle width along Fourth Street, and the overall site configuration, providing publicly accessible open space would be physically infeasible. It would require physically altering/reducing the existing office building along the Fourth Street frontage to allow for the required plaza, courtyard, or other publicly accessible open space area. Therefore, the site cannot accommodate the publicly accessible open space required without making the Project financially infeasible. This would likely lead to a reduced unit Resolution No. 2025-19 Page 5 of 13 count, smaller unit sizes, or a narrower drive aisle, creating a ripple effect that ultimately decreases the size of the buildings. The units have been carefully designed to balance common areas and bedroom space, and any further reduction could compromise livability for future owners. Moreover, if the Project becomes financially unviable, it could result in the loss of the three affordable units. Lastly, the overall site design and proposed amenities took into account the proximity of the City of Santa Ana Zoo/Prentice Park, which is located approximately 4,500 linear feet (0.85 miles) to the southwest of the project site, and Cabrillo Park, which is approximately 2,400 linear feet (0.45 miles) to the northwest of the project site. The close proximity of the City park space reduces the overall impact of the concession for the publicly accessible open space. Private Open Space (Incentive/Concession) Section 4.6 (Private/Common Open Space) of the MEMU indicates that the minimum required private open space is 90 square feet per dwelling unit. As proposed, the Project does not provide any private open space for the units. The most direct approach to meeting the minimum private open space requirement would involve constructing balconies, patios, terraces, or rooftop decks for each unit. This requirement would not only compromise the livability but also reduce the sense of privacy for residents, as the anticipated residents would include transitional age youth (TAY), who often includes individuals who are aging out of foster care, exiting the juvenile justice system, or experiencing homelessness, mental health challenges, or other vulnerabilities. Additionally, constructing balconies, patios, terraces, or rooftop decks for each unit would be economically infeasible and the strict adherence would lead to the elimination of residential units, which would affect the feasibility to construct the Project. Staff notes that the overall site design and proposed amenities took into account the proximity of the City of Santa Ana Zoo/Prentice Park and Cabrillo Park, which are located approximately 0.85-miles and 0.45-miles away. The close proximity of the City park space reduces the overall impact of the concession for the private open space requirement. Resolution No. 2025-19 Page 6 of 13 Parking Requirements (Incentive/Concession) Section 4.8 (Parking and Access) of the MEMU outlines parking requirements for mixed-use developments in the Village Center district of the MEMU. Specifically, as a mixed- use project site the overall development requires 34 parking spaces for the residential component (2.25 spaces per unit) and 94 spaces for the office component (3 spaces per 1,000 square feet), a total of 128 spaces. The total required residential parking pursuant to the State Density Bonus is 23 spaces (1.5 spaces per 2 bedroom unit). Therefore, the total parking required with the State Density Bonus parking requirements would be 117 spaces. The Applicant is proposing a total of 136 surface parking stalls, which would be a surplus of 19 parking stalls. Therefore, the Project is not anticipated to have any parking impacts. Staff notes that the Applicant is requesting a concession from the parking requirements for the residential component, due to the financial constraints and hardships associated with meeting building code requirements for new parking. The primary concern would be the financial burden associated with complying with the electric vehicle charging stations requirements. For multi-family dwellings, forty-percent of total parking spaces must be equipped with low-power Level 2 Electric Vehicle (EV) charging receptacles and ten-percent of parking spaces must have Level 2 Electric Vehicle Supply Equipment (EVSE) installed. EVSE refers to the charging infrastructure that delivers electrical energy from the grid to an electric vehicle (EV). In order to meet these EV charging requirements, an upgrade to the existing electrical infrastructure would be required, including the installation of a larger transformer in compliance with Southern California Edison (SCE) standards. However, such an upgrade presents a significant financial challenge. The costs associated with transformer upgrades including design, permitting, utility coordination, and construction, can exceed hundreds of thousands of dollars. Furthermore, the process is often time consuming and subject to extended delays due to SCE’s backlog and project review protocols. Given these high costs and logistical barriers, the transformer upgrade necessary to comply with EVSE requirements would be financially infeasible for the Applicant and would place an undue hardship on the development of the residential project. Resolution No. 2025-19 Page 7 of 13 Common Open Space (Waiver) Section 4.6 (Private/Common Open Space) of the MEMU indicates that a minimum of five-percent of common open space is required for non-residential uses (i.e., office), which would result in a requirement of 5,062 square feet. As proposed, the Project includes common open space at rate of 1.4-percent of the gross site area, which equates to 1,430 square feet. Strict adherence to the common open space requirement would result in a reduction in the number of units that can be provided in the overall Project, affecting the feasibility to construct the Project. In order to provide the required common open space and maintain the current proposed unit count, the developer would be required to remove additional surface parking stalls on the site, which would which would create overall parking constraints on the site and would further increase development costs making the Project economically infeasible. To help alleviate the common open space deficiency, the Project proposes a 761-square-foot community area to include a community room, office, bathroom, and laundry area. Moreover, the 1,430 square feet of outdoor open space would be improved with high quality decorative pavers, synthetic turn lawn, moveable furnishings, and landscaping. Lastly, the overall site design and proposed amenities took into account the proximity of the City of Santa Ana Zoo/Prentice Park and Cabrillo Park, which are located approximately 0.85-miles and 0.45-miles away. The close proximity of the City park space reduces the overall impact of the waiver for the open space requirement. Section 2. Pursuant to the California Environmental Quality Act (CEQA) and CEQA Guidelines, the proposed Project is exempt from further environmental review under Section 15168 (Program EIR). This exemption applies when a previously certified Program Environmental Impact Report (Program EIR) has adequately analyzed the environmental effects of an activity, and no new significant impacts would result from the proposed Project. If the proposed Project remains within the scope of the Program EIR and does not require a subsequent Environmental Impact Report (EIR), no additional environmental documentation is required. Therefore, a Notice of Exemption, Environmental Review No. 2023-94, will be filed for the Project. Section 3. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, referendum, and other proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute Resolution No. 2025-19 Page 8 of 13 resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively “Actions”), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve the legal counsel providing the City’s defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. Section 4. The Planning Commission of the City of Santa Ana, after conducting the public hearing, hereby approves that certain concessions and those waivers or reductions of development standards (deviations), as described in this Resolution and in the City’s Staff Report and as memorialized in Density Bonus Agreement No. 2025-03 in Exhibit A attached hereto and incorporated as though fully set forth herein and incorporated as though fully set forth herein. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Planning Commission Action dated June 23, 2025, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. ADOPTED this 23rd day of June 2025, by the following vote: AYES: Commissioners: Carl Benninger, Manuel J. Escamilla, Jennifer Oliva, Bao Pham, Alan Woo (5) NOES: Commissioners: ABSENT: Commissioners: Christopher Leo, Isuri S. Ramos (2) ABSTENTIONS: Commissioners: _______________________ Jennifer Oliva Chairperson Resolution No. 2025-19 Page 9 of 13 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:________________________ Melissa M. Crosthwaite Senior Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, GEMA ZAPIEN, Acting Recording Secretary, do hereby attest to and certify the attached Resolution No. 2025-19 to be the original resolution adopted by the Planning Commission of the City of Santa Ana on June 23, 2025. Date: ________________ ____________________________________ Gema Zapien Acting Recording Secretary City of Santa Ana 06/23/2025 Resolution No. 2025-19 Page 10 of 13 EXHIBIT A Conditions for Approval for Density Bonus Agreement Application No. 2025-03 The incentives/concessions and waiver or reduction of a development standard (deviations) as memorialized in Density Bonus Agreement Application No. 2025-03 are approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code, and all other applicable regulations. In addition, it shall meet the following conditions of approval: The Applicant must comply with each and every condition listed below prior to exercising the rights conferred by this Resolution. The Applicant must remain in compliance with all conditions listed below throughout the life of the development project. 1.All proposed site improvements must conform to the Development Project (DP) approval of DP No. 2023-32 and the plans presented to the Planning Commission on the date of public hearing and project approval. 2.Any proposed amendment to the DP No. 2023-32, including modifications to approved materials, finishes, architecture, site plan, landscaping, unit count, mix, and square footages must be submitted to the Planning Division for review. At that time, staff will determine if administrative relief is available or if the Development Project Review must be amended. 3.The project shall comply with all applicable mitigation measures as identified by the Mitigation Monitoring and Reporting Program of the 2007 Environmental Impact Report (EIR) and 2018 Subsequent EIR (SCH No. 2006031041). 4.Exterior building and exterior parking structure materials, finishes and colors for the Project shall comply with the approved materials board submitted for the Project and as approved by the Planning and Building Agency. Any changes to the materials, finishes and colors shall be approved by the Planning and Building Agency. All trash enclosures and similar ancillary structures shall match the texture, material and color of the primary building. 5.Walls and Fencing. a.The Applicant is responsible for coordination with any adjacent property owners to avoid double-walls or gaps between walls/fencing where possible. b.Climbing vines shall be planted at regularly-spaced intervals along all exposed walls and wrought-iron fencing to deter graffiti. All solid walls shall be finished with anti-graffiti coating. Resolution No. 2025-19 Page 11 of 13 6.All mechanical equipment shall be screened from view from public and courtyard areas. 7.The following parking management practices shall be incorporated and shall apply through the life of the Project: a.Requiring onsite parking permits (such as stickers or hang-tags) for any parking dedicated to the residential units, inclusive of guest parking spaces; b.Policies for maximum time vehicles may be parked in the surface guest parking spaces; and c.Policies for towing unauthorized vehicles; vehicles parked in unauthorized locations, such as fire lanes; vehicles parking in surface guest parking without a sticker, hang-tag, or other identifiers; and vehicles parked longer than any maximum guest parking timeframes allowed; 8.Prior to issuance of building permits, the Applicant shall submit a construction schedule and staging plan to the Planning Division for review and approval. The plan shall include construction hours, staging areas, parking and site security/screening during project construction. 9.A final detailed amenity plan must be reviewed and approved prior to issuance of any building permits. The plan shall include details on the hardscape design, lighting concepts and outdoor furniture for amenity, plaza, or courtyard areas as well as an installation plan. The exact specifications for these items are subject to the review and approval by the Planning Division. 10. Before submitting a landscape review application, the Applicant shall meet with Planning Division staff to evaluate the proposed plant species, sizes, quantities, and placement of trees, shrubs, and groundcover to ensure they maximize onsite landscaping in compliance with established landscape standards. The final landscape plan shall include a diverse selection of shade-producing canopy trees from the City's approved street tree list, ensuring the maximum possible number is incorporated. 11. Prior to installation of landscaping, the Applicant shall submit photos and specifications of all trees to be installed on the Project site for review and approval by the Planning Division. Specifications shall include, at a minimum, the species, box size (24 inches minimum), brown trunk height (10-foot minimum), and name and location of the supplier. 12. After Project occupancy, landscaping and hardscape materials must be maintained as shown on the approved landscape plans. Resolution No. 2025-19 Page 12 of 13 13. Subject to review and applicability by the Planning and Building Agency, the Community Development Agency, the Public Works Agency, and the City Attorney, to ensure that the property and all improvements located thereupon are properly maintained, Applicant (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the Applicant) shall execute a property management agreement. The agreement shall be recorded against the property by the City and shall be in a form reasonably satisfactory to the City Attorney. The executed agreement must be submitted to the Planning Division by the Applicant within 90 days of the approval of this Resolution. The agreement shall contain covenants, conditions and restrictions relating to the following: a.Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); b.Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including, but not limited to, hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the parking management plan, and/or restrictions on certain uses); c.Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable; d.Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon (including, but not limited to, controls on the proliferation of trash and debris about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); e.If Applicant and the owner of the property are different (e.g., if the Applicant is a tenant or licensee of the property or any portion thereof), both the Applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms. f.The agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective Resolution No. 2025-19 Page 13 of 13 assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the agreement. g.The agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City. h.The execution and recordation of the agreement shall be a condition precedent to issuance of building permits.