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HomeMy WebLinkAbout03 Office Use Provisions in C2TTFM #3 Inter -Com DATE: JUNE 14, 2004 TO: PLANNING COMMISSION FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: OFFICE USE PROVISIONS IN THE CENTRAL COMMERCIAL (C-2) DISTRICT INTRODUCTION In May, 2002, the City Council adopted Code Amendment 02-002 to clarify the process and criteria for considering office uses within the Central Commercial (C-2) zoning district. Previously, the Tustin City Code contained criteria for determining when the construction of new office buildings in the C-2 zoning district is appropriate and required the processing of a Conditional Use Permit to construct a new office building. Code Amendment 02-002 clarified that new office uses in existing buildings as well as new office buildings needed special consideration to ensure that office uses would not proliferate in areas where retail commercial uses would be more desirable, increase retail activity, and set forth new processing requirements, which are described in more detail below. In implementing Code Amendment 02-002, staff has encountered issues that are presented in this report for the purpose of initiating Planning Commission discussion. In addition, Tustin Old Town Association (TOTA) has questioned the implementation of office use provisions in Old Town Tustin (Attachment 1). This report outlines how Code Amendment 02-002 is implemented and discusses issues and opportunities for Planning Commission consideration and discussion. Additional research or exploration of the need for policy guidelines or zoning code amendments may be necessary. This effort could be included in the upcoming Zoning Code Amendment workshops or conducted separately, if desired. IMPLEMENTATION OF CODE AMENDMENT 02-002 Location of C-2 Zoning Districts and Existing Office Buildings Attachment 2 depicts properties zoned as C-2. As shown on the exhibit, the majority of the C-2 zoning districts are concentrated within the General Plan "Old Town Commercial" land use designation, the Town Center Redevelopment Project Area, and the Cultural Resource Overlay District, which contains a portion of the area commonly known as Old Town Tustin. Policy 10.6 of the General Plan Land Use Element encourages the integration of retail or service commercial uses on the street level of office projects in the Old Town area while the Cultural Resources Overlay District encourages a variety of uses that would create a commercial village atmosphere such Office Use Provisions in the C-2 Zoning District June 14, 2004 Page 2 of 7 as retail shops, restaurants, galleries, and general offices above the ground floor and in less than fifty (50) percent of a building. Other C-2 zoned properties are located along Red Hill Avenue, Newport Avenue, and Tustin Avenue and within the General Plan "Community Commercial" land use designation, which provides for a variety of retail, professional office, and service oriented business activities, many of which are highway oriented and serve a community wide area and population. With the exception of the property at the northeast corner of Sixth Street and EI Camino Real (vacant lot adjacent to Armstrong Garden Center), vacant properties along Third Street (Farmer's market), and a lot at 170 EI Camino Real, all lots within the C-2 zoning district are fully developed with retail, service, or office buildings. Attachment 3 depicts properties that were developed with office buildings either through a Conditional Use Permit process or by right (built before 1983). Many of these buildings are either residential conversions or two-story office buildings without traditional retail storefronts. Classification of Office Uses The Tustin City Code categorizes office uses as either "general" offices or "professional" offices. As listed in Section 9233a of the Tustin City Code, the General Office category lists offices for accountants, advertising agencies, contractors and building consultants, drafting, economic consultants, escrow, insurance, and public utility offices (but not including corporate yards). The Professional Office category lists offices for architects, attorneys, chiropractors, dentists, doctors, oculists, optometrists, others licensed by the State of California to .practice healing arts, including clinics for outpatients only, engineers, land planners, and surveyors. TCC Section 9233 also lists other quasi -office uses under "retail businesses" and "service businesses" including: real estate agencies, banks and finance companies, travel agencies, interior decorators, photography galleries, telephone answering services, and typing and addressing services. While these may appear to be office uses, they are classified as retail or service uses and are not subject to the same processing and criteria as office uses. Processing Requirements in the C-2 Zoning District An office use is permitted to locate within the C-2 zoning district if the use is located on any floor above the ground floor and occupies less than fifty (50) percent of the total floor area. An office use may also be permitted anywhere in a building where a Conditional Use Permit was granted. An office use can be conditionally permitted if it is located on the ground floor or in more than fifty (50) percent of the total floor area of a building and the Planning Commission determines that the office use would be more beneficial than a retail establishment. These provisions apply to construction of new office buildings and new office occupancies in existing buildings. Office Use Provisions in the C-2 Zoning District June 14, 2004 Page 3 of 7 In addition to the office use provisions, Section 9273 of the Tustin City Code regulates non -conforming uses in existing buildings. In general, a non -conforming use that was established legally may be continued indefinitely if the use is not expanded or discontinued for more than one (1) year, even though the zoning requirements have changed. As such, both the non -conforming and office use provisions are used in evaluating requests to continue or establish new office uses. For offices that would be located on the ground floor or in more than fifty (50) percent of a building (i.e., conditionally permitted), staff evaluates whether a new office use is a continuation of an existing office use or whether it constitutes a change of use using the following rationale: • An existing general office use may be permitted to continue or change to another general office use. • An existing professional office use may be permitted to continue or change to another professional office use. • An existing general office use that would change to a professional office use (and vice versa) would require the approval of a conditional use permit since this would constitute a change in the category of office use, as defined by the Tustin City Code. • Non -office uses that would change to any type of office use would require the approval of a conditional use permit since this would constitute a change in the type of use, as defined by the Tustin City Code. • Existing or proposed office uses, regardless of the type, may be permitted anywhere in a building that received a Conditional Use Permit to develop and/or establish office use(s), provided there is sufficient parking for all existing and proposed uses. As noted previously, there are office buildings located in the C-2 zoning district that were built with approval of a Conditional Use Permit and may be occupied by any type of office use. ISSUES AND DISCUSSION ITEMS In implementing the office use provisions, staff has observed the issues outlined below. These issues are presented for Planning Commission consideration and discussion. No specific recommendations are presented since the intent is to initiate discussion and focus the direction for additional research or development of solutions for the issues. Non -Conforming Offices As discussed above, Section 9273 of the Tustin City Code authorizes the continuation of existing non -conforming office uses indefinitely provided that they are not discontinued for more than one (1) year and the use is not extended or Office Use Provisions in the C-2 Zoning District June 14, 2004 Page 4 of 7 expanded. Many non -conforming office uses will continue indefinitely, which could result in prime retail space being used as office space for the foreseeable future. Discussion: Should an amortization program be established to require non- conforming office uses to obtain conditional use permits? Advantages: The amortization program would provide a specific date by which all non -conforming uses would be required to obtain a conditional use permit or cease. Some tenant spaces may become available for permitted retail and service uses if the existing office does not or cannot obtain a conditional use permit. Disadvantages: An amortization program would not guarantee that former office spaces would be converted to retail uses; there are a number of service businesses that could be permitted instead. In addition, this approach can be perceived as intrusive to the business community and not an effective approach in attracting retailing. 2. Quasi -Office Uses Many quasi -office uses are classified as either "retail businesses" or "service businesses" and are outright permitted. Since Code Amendment 02-002 only addressed general and professional office uses and not quasi -office uses, there has been some confusion about why certain uses that appear to be office uses are permitted. This issue has been raised by Tustin Old Town Association (TOTA) as expressed by the letter in Attachment 1. Types of retail businesses that are permitted include a variety of retail shops as well as real estate offices. Examples of service businesses that are permitted include barber shops, beauty parlors, interior decorators, restaurants, photography galleries travel agencies, telephone answering services, or typing and addressing services. Depending upon the type of use, service commercial uses may or may not increase pedestrian and retail activity. For example, real estate agents generally meet clients off-site and may not attract clients to their offices while barber shops and beauty salons can stimulate ancillary retail and pedestrian activity. Discussion: Should some quasi -office uses be listed under general or professional office uses or listed as conditionally permitted uses in areas where retail uses are desired? Advantages: Listing quasi -office uses would allow the Planning Commission to determine whether the location and characteristics of a particular quasi -office use is more or less appropriate than a Office Use Provisions in the C-2 Zoning District June 14, 2004 Page 5 of 7 retail use. This approach may be more closely align with the expectations of the community regarding encouraging retail and discouraging office uses, particularly the Old Town Tustin area. Disadvantages: Listing quasi -office uses as conditionally permitted uses would subject these uses to additional processing requirements. 3. Location of Office Uses One of the primary motivations for recommending Code Amendment 02-002 was to encourage retailing and pedestrian activity in Old Town Tustin and implement the Town Center Redevelopment Project Area Plan. While most of the C-2 zoning districts are concentrated in the Old Town Tustin area, there are a number of zones outside of Old Town Tustin. For the most part, these areas are developed with auto -oriented, freestanding developments that are not particularly conducive to pedestrian activity. The majority of inquiries to establish offices on ground floors have been in these areas outside of Old Town Tustin. Since no conditional use permits have been processed in these areas, there may be lost business opportunities occurring in these areas. For areas within Old Town Tustin, the conditional use permit process allows the Planning Commission to consider the location of the proposed use. Some buildings and tenant spaces in Old Town are not located in close proximity to a pedestrian corridor and may not be conducive to retailing. In these cases, the Planning Commission has the ability to determine that an office use would be more appropriate than a retail commercial use. Question: Should the Tustin City Code be amended to conditionally permit offices on the ground floor or in more than fifty (50) percent of buildings in the Old Town Tustin area only? Advantages: The implementation would be focused in the Old Town Tustin, where the greatest concern regarding office uses exists, and would be consistent with the goals of the General Plan and Redevelopment Plan for the Old Town area. This approach would also relieve office businesses in other C-2 districts outside Old Town Tustin of the additional processing requirements and delay and uncertainty in obtaining conditional use permits. Office uses in these more isolated zoning districts would be treated more consistently with other offices uses in surrounding commercial districts. Disadvantages: This approach would require some type of zoning code amendment to distinguish between the commercial zones in the Old Town Tustin area and outside the area. Office Use Provisions in the C-2 Zoning District June 14, 2004 Page 6 of 7 4. Configuration of Existing Office Buildings Attachment 4 shows buildings built as office buildings without traditional retail storefronts that are not configured to accommodate retailing activity. While some of these buildings may be easily converted to retail space, some would require more significant modifications. The conditional use permit process allows the Planning Commission to consider the building configuration. In these cases, the Planning Commission has the ability to determine that an office use would be more appropriate than a retail commercial use. Question: Should certain buildings that can be more easily converted to retail space be given a higher priority for converting to retail than others? Advantages: Establishing policy guidelines or another method of setting priorities for converting certain buildings and tenant spaces to retail uses would provide more guidance and certainty to applicants and staff when contemplating and evaluating proposed office uses. For example, the policy could state that tenant spaces that would require significant modifications are less important to convert. Office uses in these types of situations could then be supported based upon the policy guidelines. Disadvantages: Setting policy based upon the type of building rather than the location of the building may be counterproductive to the goal of encouraging retailing along primary pedestrian thoroughfares, particularly along Main Street and EI Camino Real, and in the commercial core of Old Town Tustin. The conditional use permit process provides the Planning Commission with the opportunity to review the location of the use as well as the building type and configuration. 5. Parking Requirements Buildings built as offices typically comply with the required parking for offices, which is one (1) space for each 250 square feet of office floor area. However, when portions of the building are converted into retail establishments, the parking requirements would increase to one (1) parking space for each 200 square feet of retail floor area. Consequently, the site may not have sufficient parking to accommodate new retail uses. While the Cultural Resource Overlay District provides for off-site parking in the Old Town Tustin area, these spaces may be more appropriate to accommodate new development in Old Town and there may be limitations on how many spaces will be available over time. Office Use Provisions in the C-2 Zoning District June 14, 2004 Page 7 of 7 Question: Should the parking requirements for tenant spaces that convert from office to retail uses be reduced? Advantages: Reducing parking requirements could remove barriers and create an incentive to convert existing office space into retail or service use, particularly in Old Town Tustin. Disadvantages: Over time, allowing reduced parking for retail uses may lead to parking deficiencies. One way of mitigating this would be to require parking demand studies for office to retail conversions. Often, the actual parking needs for certain uses are lower than the amount required by the zoning code. RECOMMENDATION AND ALTERNATIVES Discuss issues and opportunities related to the office use provisions. Some alternatives to be considered include: 1. Continue to apply the office use provisions as they have been implemented by staff. 2. Direct staff to conduct additional research and report back to the Planning Commission to receive additional direction. 3. Initiate the development of policy guidelines and/or zoning code amendments, as directed. Jus a Willkom Karen Peterson Associate Planner Senior Planner Attachments: 1. Response letter to Patti Eby, Tustin Old Town Association (TOTA) 2. Location Map of Central Commercial (C-2) Zoning Districts 3. Location Map of Office Buildings 4. Photographs of Existing Office Buildings SACddtPCREP0RTC-2 Office Uses Study.doc ATTACHMENT 1 Response letter to Patti Eby, Tustin Old Town Association (TOTA) .h �q Office of the City Manager January 19, 2004 Patti Eby, President Tustin Old Town Association 635 E. First Street, Suite 312 Tustin, CA 92780 SUBJECT: ORDINANCE NO. 1251 Dear Ms. Eby: ay m Tustin 300 Centennial way Tustin, CA 92780 714.573.3010 FAX 714.838.1602 Thank you for your letter received December 23, 2003, regarding the need for ground floor retail uses in Old Town Tustin and the City's enforcement of Ordinance No. 1251. 1 offer the following comments to the issues raised in your letter. • Ordinance No. 1251 permits the establishment of retail uses on the ground floor and requires the approval of a conditional use permit by the Planning Commission for construction of a new building or occupancy of an existing building where greater than fifty (50) percent of the total floor area, or any portion of the ground floor area of a building, will be occupied by a professional or general office use. Generally, existing office uses may continue to be used as offices. • Ordinance No. 1251 was adopted in June 2002, and the previous interim ordinance, Ordinance No. 1241, which contained the same provisions regarding office uses, was adopted in July 2001. Prior to July 2001, office uses were not subject to these provisions. Since Dr. Helms' new building at 215 EI Camino Real was entitled in December 2000 and Rick Rengel's remodel and second floor addition at 339 EI Camino Real was entitled in 1997, these projects were not subject to Ordinance No. 1251. • The use of the Summer Rose at 180 EI Camino Real as a residence is not permitted since the building was converted to commercial use in 1996. Code Enforcement staff will take appropriate action with respect to this issue. • In October 2003, the City sent the attached letter to Mr. Michael A. Naso regarding the use of 365 EI Camino Real. In brief, the letter indicated that staff would be unable to provide zoning clearance for an office use at the location. Code Enforcement staff have also notified Mr. Naso of the City's requirements. It is our understanding that a real estate business, which is a permitted use, is scheduled to open in March 2004 and Mr. Naso has indicated to Code January 19, 2004 Ms. Patti Eby Page 2 Enforcement staff that he will obtain all required clearances. Staff will continue to follow this matter. The City supports revitalization efforts in Old Town Tustin, including the establishment of additional retail uses, and will continue to implement Ordinance No. 1251. For your information, the Draft Environmental Impact Report for the Prospect Village Project, a request to construct a 9,182 square foot commercial/office building and twelve (12) three-story live -work units at the northwest corner of Main Street and Prospect Avenue, has been circulated for public review through February 23, 2004. If you have any questions, please call Elizabeth A. Binsack, Director of Community Development, at (714) 573-3031. Sincerely, William A. Huston City Manager Attachment: City's letter to Mr. Naso dated October 1, 2003 --- cc: Tustin Chamber of Commerce Christine A. Shingleton, Assistant City Manager Elizabeth A. Binsack, Director of Community Development Khanh Nguyen, Building Official Karen Peterson, Senior Planner Memos -1 ettershota. doc Community Development Department October 1, 2003 C i tof � t i 300 Centennial Way Michael A. Naso Tustin, CA 92780 365 EI Camino Real (714) 573-3100 Tustin, CA 92780 SUBJECT: ZONING CLARIFICATION FOR A COMBINATION REAL ESTATE/LAW OFFICE AT 365 EL CAMINO REAL Dear Mr. Naso: Thank you for your letter received September 10, 2003, requesting zoning clarification for the operation of a combination real estate referral and law office on the ground floor of the building located at 365 EI Camino Real. The property is designated as follows: ■ Central Commercial and Parking Overlay (C -2P) zoning district; ■ The General Plan Old Town Commercial land use designation; and, ■ Town Center Redevelopment Project Area. Real estate offices are permitted retail uses in the C -2P zoning district. Primary or accessory office uses located on the ground floor, including attorney offices, are conditionally permitted uses which require findings that an office use is "more beneficial in implementing applicable land use policies such as 'the Tustin General Plan, Tustin. City Code, and any Tustin Community Redevelopment Agency Project Area Plan than a commercial retail use on the subject property" (see attached Tustin City Code Section 9233(e)(1)). Since the applicable land use policies encourage a concentration of pedestrian -oriented, ground -floor retail uses in an identifiable shopping district located within a compact commercial -retail core at the heart of Old Town, staff would be unable to support the proposed use or provide zoning clearance for a business license or any building improvements related to the proposed use. Please note that several alternate City zoning districts could accommodate the proposed use. Those districts include the Retail Commercial (Cl) District, offices above the ground floor in the Central Commercial (C2), Heavy Commercial (C3), and Commercial General (CG) Districts, where less than 50 percent of the total building area is occupied by office use, and many of the Planned Community (P -C) Districts. We appreciate you considering operating your business in the City of Tustin. If you have any questions, please call me at (714) 573-3127. Sincerely, 11 �,� � Chaa d Ortlieb Associate Planner Enclosures copy: Property Owner Elizabeth A. Binsack Karen Peterson Jim Drauahon INextrage LivePublish Page 4 of 4 (3) Minimum distances between on-site sales establishments and another off-site or on-site sales establishment except restaurant establishments whether inside or outside city boundaries shall be computed by measuring the distance between the closest exterior structural walls of each use. (Ord. No. 920, Sec. 2, 11-19-84; Ord. No. 981, Sec. 4, 5-4-87; Ord. No. 1101, Sec. 1F, 11-16-92; Ord. No., 1161, Sec. 1 B, 1-2-96; Ord. No. 1230, § 2, 6-19-00) (w) Bowling alleys (x) Hotels and motels (y) Professional and general offices. Construction of new building or occupancy of an existing building where greater than fifty (50) percent of the total floor area, or any portion of the ground floor area of a building, will be occupied by a professional or general office use. (Ord. No. 1242, Sec. 3, 8-13-01; Ord. No. 1251, Sec, 2, 5-20-02) (z) Fortune-telling businesses as defined by Section 3811 of the Tustin City Code. (aa) Convenience stores. (Ord. No. 981, Sec. 3, 5-4-87) (bb) Bulk vending machines, subject to standards contained in the C-1 District regulations, Section 9232b. (Ord. No. 993, Sec. 6, 9-8-87) (cc) Large collection facilities, subject to standards contained in the C-1 District regulations, section 9232x.2. (Ord. No. 993, Sec, 7, 9-8-87) (dd) Adult entertainment booking agency, as defined in section 3731 of this, Code. (Ord. No. 175, Sec. 5; Ord. No. 699, Sec. 2; Ord. No. 888, Secs. 1(6), 7, 8-1-83; Ord. No. 958, Sec. 2, 1-20-86; Ord. No. 1170, Sec. 2, 6-3-96) (ee) Specialty stores. (Ord. No. 1237, Sec. 2, 6-4-01) (ff) Reserved. (Ord. No. 1251, Sec. 2, 5-20-02) d Development Standards for Conditionally Permitted Uses (1) As specified in section 9233b above, unless otherwise indicated, with rear yard and off-street parking requirements as specified in the use permit. (2) Hotel off-street parking requirement is 1 space for each 2 guest rooms. (Ord. No. 293, Sec. 3) e Use Criteria -Office Development (1) Where a conditional use permit is required for professional and general offices, where any portion of the ground floor area or greater than fifty (50) percent of the total floor area will be occupied by professional or general office uses, findings, in addition to those findings required to be made prior to approval of a conditional use permit pursuant to Section 9291 of the Tustin City Code, shall be made. Findings shall include supporting documentation and evidence prior to the approval of a conditional use permit stating that an office use would be more compatible with the existing and planned uses in the vicinity than a retail commercial use on the subject property and that an office use would be more beneficial in implementing applicable land use policies such as the Tustin General Plan, Tustin City Code, and any Tustin Community Redevelopment Agency Project Area Redevelopment Plan than a retail commercial use on the subject property. (2) Office uses authorized on any portion of the ground floor of a building pursuant to the use criteria in this subsection shall conform with the parking standards for retail commercial uses for the first floor area of the building, unless other standards are applicable to any portion of the property pursuant to the Cultural Resources Overlay District. (Ord. No. 157, Sec. 4.8; Ord. No. 896, Sec. 8, 11-21-83; Ord. No. 1241, Sec. 2, 7-2-01; Ord. No. 1242, Sec. 4, 8-13-01; Ord. No. 1251, Sec. 2, 5-20-02) ATTACHMENT 2 Properties Zoned Central Commercial (C-2) Districts I S"f n '�`. ,,; �• -SIR -.L] ¢ .�In�lul� -,Q, �$ = - - _ pU � .R 1 iR t� [R1 �� P61 �3u w COMM PU pop 1 I R t p, A PM fv x, '�� ,yam z ,�; , f -✓. PU Rd R3R4 1500 pD /c, \ , •' a "°.,�+� \� %?�`i✓94/ 'q �' IR 9 MHP99A >a. �� «'* IRI 'Rt! �.. tea' t1T'A� ,�-. _�p�o,���. 3 < O? s Puk n3 C -1o 9 \� Opo JJ,' lb F1 3. CIO JW Wo Ab 40, v y. Q Properties Zoned Central Commercial (C-2) ...... Cultural Resource Overlay Town Center Redevelopment Project Area Old Town Commercial General Plan Land Use Designation F M Properties Zoned Central Commercial (C-2) SEEM Cultural Resource Overlay Office Buildings Office Building with Conditional Use Permit ATTACHMENT 4 Photographs of Existing Office Buildings op— r ¢j 1 L i A t� r' � F I � f IL PA -awl Ilk -�;' i - r ���'` =� �`�+_ ... ii F >' saw IL� t