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Home My WebLink AboutOB 2 SAN JUAN APTS 02-21-89DATE: ~.~ ~ :~ :~ ;~< OLD BUSINESS ,.~ .~ , ,-'.~ ~ NO. 2 FEBRUARY 21, 1989 TO: FROM: SUBJECT: APPLICANTS- LOCATION' ENVIRONMENTAL STATUS' REQUEST- .. WILLIAM A. HUSTON, CITY HANAGER COMMUNITY DEVELOPMENT DEPAI~llIENT GENERAL PLAN AMENDMENT 88-02 AND ZONE CHANGE 88-02 (SAH JUAN APARTMENTS) SAN JUAN APARllIENTS % MESA DEVELOPMENT COMPANY 2925 COLLEGE AVENUE, #A-3 COSTA MESA, CALIFORNIA 92626 AITENTION: MR. LARRY CAMPEAU 1432 SAN JUAN STREET A NEGATIVE DECLARATION HAS BEEN PREPARED IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT 1) GENERAL PLAN AMENDMENT 88-02; TO RECLASSIFY THE GENERAL PLAN LAND USE DESIGNATION FROM C (COMMERCIAL) TO MF (MULTI-FAMILY RESIDENTIAL) 2) ZONE CHANGE 88-02; TO REZONE THE PROPERTY FROM PC-C1 (PLANNED COMMUNITY/RETAIL COMMERCIAL) TO R-3 (2200) (MULTI-FAMILY RESIOENTIAL) RECOMMENDATION Pleasure of the City Council. BACKGROUND On February 6, 1989, the City Council reviewed and continued this item to allow the applicant an opportunity to consider whether they would be amenable to an R-3 (2700) zoning designation as suggested by the Council or whether they wished to retain the current Commercial General Plan and zoning designations on the site. The R-3 (2700) designation would reduce the proposed maximum development potential on the subject property from eight dwelling units to six dwelling units. City Council Report GPA 88-02 and ZC 88-02 February 21, 1989 Page two The R-3 (2700) zoning designa'tion is also consistent with the zoning designation of properties on the north side of San Juan Street directly across from the subject project. Staff has attached alternative resolutions for approval or denial of the project as the City Council may-determine appropriate. Ordinance No. 1019 has been revised to reflect the R-3 {2700) designation as directed by the Council. Associate Planner ~hri stine Shingleton~/ Director of Community Development DF 'pef Attachments' Ordinance No. 1019 Resolution No. 89-19 (a), 89-19 (d) and 89-20 i lml Comrnunity DeveloPmen: Departmen~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16- 17 18 19 2O 21 22 23 24 25 26 27 28 RESOLUTION NO. 89-19 (A') A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF' TUSTIN, CALIFORNIA, APPROVING GENERAL PLAN AMENDMENT 88-02, A REQUEST TO CHANGE THE LAND USE MAP OF THE GENERAL PLAN FROM C (COMMERCIAL) TO MF (MULTI-FAMILY RESIDENTIAL) FOR THE PROPERTY LOCATED AT 1432 SAN JUAN STREET. The City Council of the City of Tustin does hereby resolves as follows' I. The City Council finds and determines as follows' A. Government Code Section 65356.I provides that when it is deemed to be in the public interest, the legislative body may amend a part of the General Plan. Be In accordance with Government Code Section 65356.1, a public hearing was duly noticed, called, and held on the application of the Mesa Development Company to reclassify the land use designation from C (Commercial) to MF (Multi-Family Residential) on the property located at 1432 San Juan Street on December 12, 1988, January 9, 1989 and February 6, 1989. C. This amendment has been reviewed in accordance with the California Environmental Quality Act and a Negative Declaration has been prepared and has been certified by the City Council by adoption of this resolution. D. The proposed residential designation is in the best interest of the public and surrounding property owners in that a residential ~ designa.tion would allow greater land use compatibility between the adjacent commercial, public and institutional, and residential uses. E. The proposed land use change is consistent with other elements of the General Plan. II. The City Council hereby approves General Plan Amendment 88-02 changing the land use map of the Tustin General Plan redesignating property located a't 1432 San Juan Street (as shown on Exhibit A) from C (Commercial) to MF {Multi-family Residential). All mitigation measures contained in the approved Negative Declaration are also adopted. PASSED AND ADOPTED at a regular meeting of the Tustin City Council, held on the day of , 1989. Mary Wynn, City Clerk Ursula 'E.--Kennedy, Mayor NO. 1128,~ SAN JUAN STREET:~.~ I'/l~bl SC/.IOOL0'354 Ac'(c) BLIP. 12 ~. 87 AC. ~ POt~. LOI" .$/ " IIII SUBJECT SITE 1432 San Juan Street A.P. ,,500=141.08_ ii(IL GENERAL PLAN AMENDMENT 88-02 ZONE CHANGE 88-02 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 RESOLUTION NO. 89-19- (D) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DENYING GENERAL PLAN AMENDMENT 88-02, A REQUEST TO CHANGE THE LAND USE MAP OF THE GENERAL PLAN FROM C (COMMERCIAL) TO MF (MULTI-FAMILY RESIDENTIAL) FOR THE PROPERTY LOCATED AT 1432 SAN JUAN STREET. The City Council of the City of Tustln does hereby resolve as follows- I. The City Council finds and determines as follows' Ae Government Code Section 65356.1 provides that when it is deemed to be in the public interest, the legislative body. may amend a part of the General Plan. Be In accordance wi th Government Code Section 65356.1, a publ. ic hearing was duly noticed, called, and held on the application of the Mesa Developmen.t Company to reclassify the land use designation from C (Commercial) to MF (Multi-Family Residential) on the property located at 1432 San Juan Street on .December 12, 1988, January 9, 1989 and February 6, 1989. C. The existing commercial designation is in the best interest of the public and surroundlng property owners, in that commercial uses are a more appropriate buffer between surrounding residential developments and the adjacent high 'school ballfields, church, and office uses. De The proposed land' use change is not consistent with other elements of the General Plan, particularly the Land Use Element and the Housing Element, which discourage creation of additional multi-family designated land, in that there is currently an imbalance of renter-occupied housing versus owner-occupied housing and the City cannot require owner-oc.cupied versus renter-occupied housing as both would be permitted within a multi-fami ly designation. II.. The City Council hereby denies General. Plan Amendment 88-02. PASSED AND ADOPTED at a regular meeting of the Tustin City Council, held on the day of ..... , 1.989. Ursula E. Kennedy, Mayor Mary Wynn~' ct ty Clerk ORDINANCE NO. 1019 AN ORD.INANCE OF THE CITY COUNCIL OF THE .CITY OF TUSTIN, CALIFORNIA, APPROVING ZONE CHANGE 88-.02, TO : REZONE PROPERTY LOCATED AT 1432 SAN 'JUAN STREET FROM" PC-C1 (PLANNED COMMUNITY/RETAIL COMMERCIAL) TO R-3 (2'700) (MULTI-FAMILY RESIDENTIAL). .' The City Council of the City of Tustin does hereby ordain as follows: I. The City Council finds and determines as follows: A. A public hearing was duly noticed, called and held on the application of the Mesa Development Company to rezone the property located at 1432 San Juan Street from PC-C1 (Planned Community/Retail Commercial) to R-3 (2700) (Multi-Family Residential) on December 12, 1988, January 9, 1989, February 6., 1989 and February 21, 1989. B. 'This Zone Change has been reviewed and in accordance with the California Environmental Quality Act and a Negative Declaration has been prepared and has been certified by the City Council by adoption of this Ordinance. C.. The proposed zoning is consistent wi th the' General Plan, particularly the Land Use Element, in that the multi-family designation would allow compatible uses and orderly development in the neighborhood. De The proposed zoning is in the best interest of the public heal%h, safety and welfare of the surrounding neighborhood and property owners in that the maximum allowed density would ensure greater land use compatibility between the adjacent residential, public and institutional, and commercial uses. II. The City Council hereby approves Zone Change 88-02 as shown on Exhibit A, amending the City of Tustin Zoning Map to rezone property at 1432 San Juan Street from PC-C1 (Planned Community) to R-3 (2700) (Multi-family Residential. All mitigation measures contained in the approved Nega.tive Declaration are also adopted. PASSED AND ADOPTED at a regul~ar meeting of the Tustin City Council, held on · the day of , 1989. Ursula E. Kennedy, Mayor Mary Wynn, City Clerk SAN' JUAN STREEi; = !N IIII SUBJECT SITE 1432 San Juan Street ,o J _ _l~l I l II I I II III GENERAL PLAN AMENDMENT 88-02 ZONE ..CHANGE 88-02 1 2 3 - 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 RESOLUTION NO. 89-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, 'DENYING ZONE CHANGE 88-02,. A REQUEST TO REZONE PROPERTY LOCATED AT 1432 SAN JUAN STREET FROM PC-C1 (PLANNED COMMUNITY/RETAIL COMMERCIAL) TO R-3 (2200) (MULTI-FAMILY RESIDENTIAL). The City Council of the City of Tustin does hereby resolve as follows: I. The City CoUncil finds and determines as follows: Ae A public hearing was duly noticed, called and held on the application of the Mesa Development Company to rezone the property located at 1432 San Juan Street from PC-C1 (Planned Community/Retail Commercial) to R-3 (2200) (Multi-Family Residential) on December 12, 1988, January 9, 1989 and February 6, 1989. B The proposed zOning is not consistent with the General Plan, particularly .the Land Use Element and the Housing Element, in that these elements discourage creation of additional multi-family designated, land due to a current imbalance of renter-occupied housing versus owner-occupied housing and the City cannot require owner-occupied versus renter-occupied housing as both are permitted in the R-3 zoning district. C. The proposed zoning is not in the best interest of the public health, safety and welfare of the surrounding neighborhood and property owners, in that commercial uses are a more appropriate buffer between surrounding residential developments and the adjacent high school ballfields, church and office uses. II. The City Council. hereby denies Zone Change 88-02. PASSED 'AND ADOPTED at a regular meeting of the Tustin City Council, held on the day of , 1989. Ursula E. Kennedy, Mayor I~ary Wynn, City Clerk SAN JUAN APARTMENTS 1432 San Juan Tustin, CA 92680 To determine the actual lot cost, effective February 21, 1989, we have added to our base lot cost of $318,000.00 the 'expenses we have incurred in .our original design of a 10 unit project. We have only included those expenses that must be duplicated because the original design could not be utilized. They are as follows: Base Lot Cost Escrow Closing Costs Architectural for 10 units Engineering for 10 units Construction Appraisal for 10 units Insurance Construction Loan Interest 7/8/88 to 2/21/89 Removal of Hazardous Material Temporary Fencing Loan Modification and Extension Fees $318,000.00 761.00 13,700.00 6,100.00 1,200.00 1,950.00 15,900.00 4,036.00 250.00 6,000.00 $367,897.00 TRUE LOT COST EFFECTIVE 2/21/89 $367,897.00 SAN JUAN APARTMENTS 1432 San Juan Tustin, CA 92680 COST'& PROFIT ANALYSIS FOR 8 UNITS Assumptions: 1135 square feet per unit Lot Cost of $367,897.00 Completion by August 21, 1989 Construction Cost of $55.00 per square foot (including direct, indirect and offsite) Apartments will rent for $950/per month each COST OF PROJECT: Construction Costs: 1135 sq.ft. X 8 Units X $55.00 sq.ft. = $499,400.00 Lot Cost: 367,897.00 TOTAL COST OF PROJECT: $867,297.00 VALUE OF PROJECT: (Using average of 3 accepted appraisal methods.) INDICATED VALUE VIA INC~4E'APPROACH Income 8 units @ $950.00/Mo. X 12 Months = $ 91,200.00 Total Annual Income (GSI) Less Vacancy (3%) Effective Gross Income Less Operating Expenses (27%) Net Operating Income (NOI) NOI $64,579 OAR .07 $922,557.00 INDICATED VALUE INCOME APPROACH: $ 91,200.00 2,736.00 88,464.00 23,885.00 $ 64,579.00 $922,557.00 Cost & Profit Analysis 8 Units Page Two INDICATED VALUE VIA X GROSS APPROACH Gross Income 8 units @ $950.00/Mo. X 12 Months Gross Income X 10.5 INDICATED VALUE X GROSS APPROACH: $ 9-1,200.00 $ ' 91,200.00 X 10.50 $957,600.00 $957,600.00 INDICATED VALUE VIA MARKET DATA APPROACH: 8 units X $115,000.00/Unit $920,000.00 AVERAGE VALUE USING ALL 3 METHODS Income Approach X Gross Approach Market Data TOTAL $2,800,157.00 922,557.00 957,600.00 920,000.00 $2,800,157.00 $933,385.00 INDICATED VALUE AVERAGING ALL Less Total Cost of Project NET PROFIT 3 METHODS: $933,385.00 867,297.00 $ 66,088.00 SAN JUAN APARTMENTS 1432 San Juan Tustin, CA 92680 COST & PROFIT ANALYSIS.FOR 6 UNITS Assumptions: 1135 square feet per unit Lot Cost of $367,897.00 Completion by August 21, 1989 Construction Cost of $55.00 per square foot (including direct, indirect and offsite) Apartments will rent for $950/per month each COST OF PROJECT: Construction Costs: 1135 sq.ft. X 6 Units X $55.00 sq.ft. = $374,550.00 Lot Cost: 367,897.00 TOTAL COST OF PROJECT: $742,447.00 VALUE. OF PROJECT: (Using average of 3 accepted appraisal methods.) INDICATED VALUE VIA INCOME APPROACH Income 6 units @ $950.00/Mo. X 12 Months = $ 68,400.00 Total Annual Income (GSI) Less Vacancy (3%) Effective Gross Income Less Operating Expenses (27%) Net Operating Income (NOI) NOI $48,435 OAR ,07 $691,928.00 INDICATED VALUE INCOME APPROACH: $ 68,400.00 2,052.00 66,348.00 17,913.00 $ 48,435.00 $691,928.00 Cost & Profit Analysis 6 Units Page 2 INDICATED VALUE VIA X GROSS APPROACH .. Gross Income 6 units @ $950.00/Mo. Gross Income X 10.5 X 12 Months INDICATED VALUE X GROSS APPROACH: $ 68,400.00 $ 68,400.00 X 10.50 $718,200.00 $718,200.00 INDICATED VALUE VIA MARKET DATA APPROACH: 6 units X $115,000.00/Unit $690,000.00 AVERAGE VALUE USING ALL 3 METHODS Income Approach X Gross Approach Market Data TOTAL $2,100,128.00 INDICATED VALUE AVERAGING ALL 3 METHODS: Less Total Cost of Project NET LOSS 691,928.00 718,200.00 690,000.00 $2,100,128.00 $700,042.00 $700,042.00 742,447.00 ($ 42,405.00)