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Home My WebLink About11 DCCSP AND RHASP REVISIONS UPDATEDocuSign Envelope ID: 13A3210E-57C9-4C98-89FD-81FA6EA8B41C C�1"y o� AGENDA REPORT MEETING DATE: TO: FROM: SUBJECT: SUMMARY: APRIL 16, 2024 NICOLE BERNARD, ACTING CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT Agenda Item 11 Reviewed: DS City Manager Finance Director N/A DOWNTOWN COMMERCIAL CORE SPECIFIC PLAN (DCCSP) AND RED HILL AVENUE SPECIFIC PLAN (RHASP) REVISIONS UPDATE On December 5, 2023 the City Council was provided an assessment of the Downtown Commercial Core Specific Plan (DCCSP) and the Red Hill Avenue Specific Plan (RHASP), which identified potential revisions to remove barriers to redevelopment and better align the specific plans with the real estate market. The assessment was prepared by Economic Planning Systems (EPS), Inc., who provided the City Council with a summary of findings and policy options. The Council received and filed the report and directed staff to bring forward the recommended policy actions at future Council meetings, for individual consideration and action. Since that time, the City Council has taken action on two recommended items. On February 20, 2024, the City Council approved a policy action regarding parkland in -lieu of dedication fee ("park fee") assessed for residential rental projects in the DCCSP and RHASP; and on March 5, 2024, the City Council took action regarding the City's voluntary workforce housing ordinance by temporarily suspending the affordable housing in -lieu fee for 36 months. This report provides a status update on the remaining near- and mid-term policy options to be considered by the City's Planning Commission and subsequently presented to the City Council. N xoto]►h I T► 1 = 101 m7_r I Eel 'ta That the City Council direct staff to implement the following items: 1. Provide initial findings and recommendations to the Planning Commission in June 2024 and initiate Specific Plan Amendments thereafter on the following items: • Reductions in residential parking standards. 0 Modifications to private storage area requirements. DocuSign Envelope ID: 13A3210E-57C9-4C98-89FD-81FA6EA8B41C April 16, 2024 DCCSP & RHASP Revisions Update Page 2 2. Provide initial findings and recommendations to the Planning Commission in Fall 2024 and initiate Specific Plan Amendments thereafter on the following items: • Modifications to the types of land uses allowed (i.e., retail, mixed -use and residential), including ground floor retail requirements, at key nodes within the DCCSP and RHASP. • Revisions, if applicable, to retail and mixed -use parking standards in the DCCSP and RHASP. • Modify height restrictions where historic preservation is not a concern. 3. Initiate Specific Plan Amendment to eliminate the Residential Allocation Reservation (RAR) Program contained in the DCCSP and RHASP in Winter 2024, in correlation with the adoption of Objective Design Standards (ODS). FISCAL IMPACT: Staff anticipates that future actions will result in a positive impact on the General Fund, as they implement policy recommendations intended to encourage residential development in the DCCSP and RHASP areas. However, there are costs associated with the proposed actions. If necessary, staff will be seeking appropriation as items are brought forward. CORRELATION TO THE STRATEGIC PLAN: The proposed project will further the objectives of Strategic Plan Goal A — Economic and Neighborhood Development through revisions to the DCCSP and RHASP specific plans, which will facilitate private development, encourage in -fill development and increase housing options. DISCUSSION: On December 5, 2023 the City's consultant, Economic Planning Systems (EPS), Inc., provided the City Council with an assessment of the Downtown Commercial Core Specific Plan (DCCSP) and the Red Hill Avenue Specific Plan (RHASP). The assessment identified potential revisions to the specific plans to remove barriers to redevelopment and better align them with the real estate market. The Council was provided a summary of findings and policy options, and a list of actions recommended by the Mayor's Economic Development Ad -Hoc Committee, which is comprised of Mayor Lumbard and Councilmember Gallagher. At that meeting, the City Council directed staff to return in February with resolutions for applicable policy options and to prepare an agenda report further describing and outlining the scope of amendments to the Specific Plans and/or Tustin City Code thereafter. DocuSign Envelope ID: 13A3210E-57C9-4C98-89FD-81FA6EA8B41C April 16, 2024 DCCSP & RHASP Revisions Update Page 3 Consequently, on February 20, 2024 the City Council approved a policy option to reduce the parkland in -lieu of dedication fee ("park fee") assessed for non -subdivision residential projects in the DCCSP to match the RHASP, such that the "market value" of land is set at $2.5 million per acre for the purposes of calculating park fees. The Council also directed staff to study the appropriate park fee structure for residential subdivision projects. The Parks and Recreation Department is currently researching the matter and may potentially secure a consultant to prepare a parkland needs assessment and recommendation for parkland dedications. In addition, on March 5, 2024, the City Council also reviewed and approved a policy option to suspend the affordable housing in -lieu fees for residential projects located in the DCCSP and RHASP areas for 36 months, and directed staff to assess the City's Voluntary Workforce Housing ordinance and present alternatives to the Planning Commission for consideration. The Economic Development Department is assessing Council's request, and will likely secure a consultant to prepare an assessment for the Commission's and Council's consideration. This report provides an outline and "roadmap" to implementing the remaining five (5) near- and mid-term items. These included the following: 1. Reduce Residential Parking Standards — Consider reducing residential parking ratios from 2.25 parking spaces per unit to 1.75 parking spaces per unit. EPS Findings: • City's parking minimums and walkability goals are at odds. • City goals for the Specific Plans are to create synergistic, desirable, livable, walkable, and attractive area and activate commercial area with residential uses. • "Sea of parking" discourages walking. • Developers typically build less parking. ■ Developers typically build approximately 1.8 spaces per unit ■ Residents typically use 1.46 spaces per unit (and 1.06 per bedroom). • Successful downtowns require even less parking. • Nearby cities have lower residential requirements. • New parking exemption in trade area impact Tustin. Much of Santa Ana and parts of Anaheim and Orange can no longer require parking. Tustin is impacted by reduced requirements in nearby locations competing for real estate development investment. • Parking reform is widespread in state and beyond. Implementation: • Action Required: Specific Plan Amendments via Planning Commission and City Council public hearings. DocuSign Envelope ID: 13A3210E-57C9-4C98-89FD-81FA6EA8B41C April 16, 2024 DCCSP & RHASP Revisions Update Page 4 Process: Conduct trade area survey in-house by assessing and confirming the parking standards of other cities in the "trade area" (Orange, Santa Ana, and Irvine). Further evaluation of recent housing entitlements in these cities also will be conducted to gauge the frequency and types of parking exemptions or modifications (i.e., reductions based on shared parking, off -site waivers, transit adjacency, etc.). Timing: Initial findings and a recommendation will be presented to the Planning Commission in June 2024. Initiate Specific Plan thereafter. 2. Modify Requirement for Ground Floor Retail and Parking Requirements - Identify key nodes (e.g. Old Town District and other important locations) for requiring ground floor retail, but relax elsewhere; modify parking requirement in Old Town district or small sites. EPS Findings: • Requirements currently too ubiquitous; more specifics about size, character, and location of desired walkable/retail district will aid development, avoid empty storefronts. • At key nodes, make housing as a conditional use only if desired retail is built. • Consider making it easier to include retail within mixed -use projects by further reducing parking requirements - e.g., 50% less parking required in Old Town district. • Clarify and market in -lieu parking fee policy; consider updating in -lieu fee amounts. Could limit policy to specific locations (e.g., Old Town district, small sites only, etc.). Consider using fee to help finance new parking supply (long-term). Implementation: • Action Required: Specific Plan Amendments via Planning Commission and City Council public hearings. • Process: Using project characteristics collected from survey of trade area projects and site characteristics of properties within the DCCSP and RHASP areas: o Identify properties and areas that are best suited for retail, mixed -use, and residential development. The objective is to align development expectations with site characteristics and real estate trends. Site characteristics that might be considered include: parcel size, parcel depth & width, frontage width, access, potential for lot consolidations, opportunities for shared parking/public parking for retail, historic relationship, infrastructure constraints, etc. o Evaluate the parking data collected from other trade area cities to determine if and how they provide parking flexibility for mixed -use and retail projects and within their downtown environment. If supported by DocuSign Envelope ID: 13A3210E-57C9-4C98-89FD-81FA6EA8B41C April 16, 2024 DCCSP & RHASP Revisions Update Page 5 the research, potential reduction of parking spaces required for mixed - use and commercial projects in a downtown environment and/or small sites will be proposed. Timing: Initial findings and a recommendation will be presented to the Planning Commission in Fall 2024. Initiate Specific Plan thereafter. 3. Eliminate Residential Allocation Reservation (RAR) Program EPS Findings: • Eliminate long, discretionary review/allocation process for residential to provide developers more certainty (until EIR unit count limits are exceeded). • Ensure housing is allowed in most Specific Plan Area locations (including all RHNA sites). • Objective Design Standards and other Plan Area requirements will still apply. Implementation: • Action Required: Specific Plan Amendments via Planning Commission and City Council public hearings. • Process: RAR program currently provides the City the opportunity to review projects and ensure their compatibility with surrounding neighborhoods. Elimination of the RAR should be correlated with the adoption of Objective Design Standards (ODS), which would initially be implemented with the City's Housing Element Rezoning Program. • Timing: Because the Rezoning Program is anticipated to go before the City Council in October 2024, staff recommends that that the Planning Commission review amendments to the RAR program in Winter, 2024. 4. Modify Height Restrictions EPS Findings: • Increase allowable heights where historic resource protection is not a concern. Implementation: • Action Required: Specific Plan Amendments via Planning Commission and City Council public hearings. • Process: Map historic resources and view corridors in the DCCSP area and other historic significant areas to identify where increased building heights would likely have minimal impact. Assessment will also consider sensitive land uses, if applicable. • Timing: Initial presentation will be made to the Planning Commission for review and comment in the Fall, 2024. Initiate Specific Plan Amendment thereafter. DocuSign Envelope ID: 13A3210E-57C9-4C98-89FD-81FA6EA8B41C April 16, 2024 DCCSP & RHASP Revisions Update Page 6 5. Relax Residential Private Storage Requirements EPS Findings: • Relax requirement for private on -site storage for every unit (e.g., remove entirely, set as percentage of units, or look to match neighboring cities). • Consider expanding bike/scooter parking requirements. Implementation Action: • Action Required: Specific Plan Amendments via Planning Commission and City Council public hearings. • Process: Survey of development standards from other trade -area cities to include private storage requirements for multi -family residential projects, including mixed -use developments. • Timing: Compile and compared the data collected, and make a recommendation to the Planning Commission in June 2024 and City Council thereafter. DocuSigned by: Prepared by: 8.... -- Jay Eastman Assistant Community Development Director EDocuSigned by: K)Approved by:Fna5nA,F,'ARSAAS Justina L. Willkom Community Development Director