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Home My WebLink About11 ZONE CHANGE 2025-0001 VESTING TENTATIVE TRACT MAP 19390 SUBDIVISION 2025-0001 DESIGN REVIEW 2025-0004Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 MEETING DATE TO 112 :e1/ Agenda Item 11 Initial Reviewed: 19- � AGENDA REPORT City Manager Finance Director N/A DECEMBER 2, 2025 ALDO E. SCHINDLER, CITY MANAGER ALEXA SMITTLE, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: ZONE CHANGE 2025-0001, VESTING TENTATIVE TRACT MAP 19390/SUBDIVISION 2025-0001, DESIGN REVIEW 2025-0004, AND CONSIDERATION OF A FINAL ENVIRONMENTAL IMPACT REPORT FOR THE DEVELOPMENT OF 145 RESIDENTIAL UNITS AT THE SOUTHEAST CORNER OF 17TH STREET AND PROSPECT AVENUE SUMMARY: This item is consideration of the proposed Cypress Grove project, a 145-unit for -sale residential community on an 8.5-acre site, presently known as Tustin Financial Plaza located at the intersection of 17t" Street and Prospect Avenue. Redevelopment of the site will require the demolition of five existing commercial office buildings, a zone change to allow for residential unit development, a tract map for subdivision of the condominium units, design review, and associated environmental analysis. On November 17, 2025, the Planning Commission unanimously approved Resolution Nos. 4535, 4536, and 4537, recommending City Council approval of Zone Change 2025-0001, Vesting Tentative Tract map 19390/Subdivision 2025-0001, Design Review 2025-0004, and certification of the Final Environmental Impact Report. RECOMMENDATION: That the City Council: 1. Adopt City Council Resolution No. 25-65, certifying the Final Environmental Impact Report and adopting the Findings of Fact, Statement of Overriding Considerations, and Mitigation Monitoring and Report Program for Zone Change 2025-0001, Vesting Tentative Tract Map 19390/Subdivision 2025-0001, and Design Review 2025-0004. 2. Introduce and conduct first reading by title only of Ordinance No.1573 to approve Zone Change 2025-0001 to rezone the site from Planned Community Business Park to Planned Community Residential and adopt a new development plan to establish permitted residential uses and development standards for the construction of 145 residential condominiums on approximately 8.5 acres. 3. Adopt City Council Resolution No. 25-66 to approve: Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 City Council Agenda Report Cypress Grove December 2, 2025 Page 2 a. Vesting Tentative Tract Map 19390/SUB 2025-0001 to subdivide the property to construct 145 residential condominiums on approximately 8.5 acres. b. Design Review 2025-0004 for the design and site layout of 145 residential condominiums. FISCAL IMPACT: There is no fiscal impact associated with this item however, the applicant has provided a Fiscal Impact Analysis (Attachment M), that considered ongoing general fund revenues to the City from property tax and sales tax, showing an estimated net positive benefit of about $191,000 in the first year. CORRELATION TO THE STRATEGIC PLAN: This project supports Strategic Plan Goal A — Economic and Neighborhood Development, by setting the stage for the redevelopment of an underutilized office complex into a walkable, multi -family residential development that would provide much needed housing and support current and future businesses in the vicinity. BACKGROUND AND DISCUSSION: The applicant proposes to redevelop the 8.5-acre Tustin Financial Plaza site with a 145-unit for -sale residential community known as Cypress Grove, comprised of 62 detached cluster homes and 83 attached townhomes. The project density is approximately 17 dwelling units per acre, and involves the demolition of the five existing commercial office buildings. The site is located at a transition point along 17th Street, where uses to the west are generally characterized by a mix of multi -story commercial, office, and institutional buildings with heights and massing distinctly different from the single-family neighborhoods to the east of the site, as 17th Street leads into the unincorporated community of North Tustin. Four of the five existing office buildings are two stories and approximately 30 feet tall, while the fifth building in the center of the lot is four stories and approximately 55 feet tall. Zone Change The site has a Planned Community Commercial Business (PCCB) General Plan land use designation that allows for a mix of commercial, office, and industrial land uses, and may also include residential uses. However, the site is currently zoned Planned Community Business (PC BUS), which does not permit residential development. The applicant requests to change the zoning to the Planned Community Residential (PC RES) zone to accommodate the proposed project. The PC RES zoning designation is intended to be a very flexible tool to facilitate unique housing types including small lots, cluster homes, and mixed typologies, the latter two of which are demonstrated in the proposed project. Thus, the Zone Change (ZC) includes a development plan that establishes unique development standards for the proposed community. Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 City Council Agenda Report Cypress Grove December 2, 2025 Page 3 The proposed residential density is 46.6 persons per acre, which is within maximum density of 54 persons per acre allowed by the PCCB General Plan land use designation. With the approval of the zone change, the project would be consistent with the PCCB General Plan land use designation. Additional details regarding the proposed zone change can be found within the Planning Commission staff report (Attachment C), and findings supporting the Planning Commission's recommendation are contained within Draft City Council Ordinance 1573 (Attachment 1). Design Review The proposed project would be comprised of three-story townhomes, with a maximum height of 40 feet, designed to be compatible with the scale of the existing commercial street frontages along 17th Street to the west, but with a residential use that transitions into the single family homes to the east. The placement of the proposed attached townhomes, including street -facing front doors, fosters an urban edge along the corridors; while the interior of the site consists of detached cluster homes. Vehicle access is through a single point of entry on Prospect Avenue, though emergency vehicle access will be provided to 17th Street at the northeast edge of the site. On -site circulation is accommodated by private streets, which connect a total of 330 on -site parking spaces, including two -car garages for all homes (290 spaces), and 40 guest spaces. This complies with the proposed Cypress Grove parking standard of one two -car garage for each residence, and one guest space for every four units (i.e., 0.25 guest spaces/unit). These standards are also consistent with the Tustin City Code (TCC) parking requirements for multi- family residential development. Key design characteristics include the removal of existing driveways on 17th Street; the construction of a new Class I off-street bike path on 17th Street, which will enhance connectivity along the 17th Street corridor for pedestrian and bicycle safety; and revisions to the existing easterly signalized intersection at North Prospect Avenue and 17th Street to accommodate the proposed project and improve vehicle circulation. The single-family detached cluster homes will incorporate Farmhouse, Craftsman, and Abstract Traditional designs, and the attached townhomes will feature a Spanish architectural style, and range in size from three -unit to nine -unit townhome buildings. The designs use varied rooflines, articulated facades with decorative materials such as board and batten siding, and a complementary color palette to reduce the perceived mass and scale of the buildings. Additional details and graphics of the proposed site design and features can be found within the submitted plans (Attachment B), the Planning Commission staff report (Attachment C), and findings to support the Planning Commission's recommendation are contained within the Draft City Council Resolution 25-66 (Attachment J). Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 City Council Agenda Report Cypress Grove December 2, 2025 Page 4 Vesting Tentative Tract Map 19390 / Subdivision (SUB) 2025-0001 Vesting Tentative Tract Map (VTTM) 19390 is a subdivision of the 8.5-acre property to create 145 for -sale residential condominium units. Common areas include features such as the internal access drive aisles, recreational common space, guest parking areas, and more. Covenants, Conditions, and Restrictions (CC&Rs) will be required for the maintenance of the common areas and facilities throughout the project site. Additional details regarding the VTTM 19390/SUB 2025-0001 change can be found within the Planning Commission staff report (Attachment C), and findings to support the Planning Commission's recommendation are contained within the draft City Council Resolution 25-66 (Attachment J). Environmental Review The City prepared a Final Environmental Impact Report (FEIR) for the project (State Clearinghouse Number 2025060042) in accordance with the provisions of the California Environmental Quality Act (CEQA) (Article 6 of the California Code of Regulations, Title 14, Chapter 3). The Draft Environmental Impact Report (DEIR) concluded that the project would have a significant and unavoidable impact regarding Historical Resources due to the demolition of the Tustin Financial Plaza, because it is considered eligible for listing in an historic registry. The FEIR establishes project mitigation measures and a Statement of Overriding Considerations for the impact to historical resources. Apon certification of the FEIR, a Mitigation Monitoring and Reporting Program (MMRP) will be adopted, which ensures implementation and ongoing compliance of the mitigation measures. Additional details regarding CEQA, the DEIR, and the FEIR can be found within the Planning Commission staff report (Attachment C), and findings to support the Planning Commission's recommendation for FEIR certification are contained within the Draft City Council Resolution 25-65 (Attachment H). Signed by: Signed by: E Jay as man, WICP Alexa Smittle Assistant Director - Planning Community Development Director Attachments: A. Radius Map and Land Use Application Fact Sheet B. Submitted Plans C. Planning Commission Staff Report, November 17, 2025 Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 City Council Agenda Report Cypress Grove December 2, 2025 Page 5 D. Planning Commission Minutes, November 17, 2025 E. Planning Commission Resolution No. 4535 F. Planning Commission Resolution No. 4536 G. Planning Commission Resolution No. 4537 H. City Council Resolution No. 25-65 Exhibit 1: Final EIR i. Response to Comments ii. Mitigation Monitoring and Reporting Program Exhibit 2: Draft EIR Exhibit 3: Findings of Fact and Statement of Overriding Considerations I. City Council Ordinance No. 1573 Exhibit 1: Zone Change Exhibit Exhibit 2: Cypress Grove Planned Community Regulations J. City Council Resolution No. 25-66 Exhibit 1: VTTM 19390 Exhibit 2: Conditions of Approval K. Agency Comment Letters on VTTM 19390 L. Public Comment Letters M. Fiscal Impact Analysis