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PC Min - 04/22/2014CITY OF CAMPBELL PLANNING COMMISSION MINUTES 7:30 P.M. APRIL 22, 2014 CITY HALL COUNCIL CHAMBERS TUESDAY The Planning Commission meeting of April 22, 2014, was called to order at 7:30 p.m., in the Council Chambers, 70 North First Street, Campbell, California by Chair Resnikoff and the following proceedings were had, to wit: ROLL CALL Commissioners Present: Chair: Vice Chair: Commissioner: Commissioner: Commissioner: Commissioner: Commissioners Absent: None Staff Present: Building Official: Planning Manager: Associate Planner: City Attorney: Recording Secretary: APPROVAL OF MINUTES Paul Resnikoff Pam Finch Cynthia L. Dodd Yvonne Kendall Philip C. Reynolds, Jr. Michael L. Rich Bill Bruckart Aki Honda Snelling Daniel Fama William Seligmann Corinne Shinn Motion: Upon motion by Commissioner Rich, seconded by Commissioner Reynolds, the Planning Commission minutes of the meeting of April 8, 2014, were approved. (6-0) COMMUNICATIONS 1. One desk item for Agenda Item 1 and two for Agenda Item 2 were distributed. Campbell Planning Commission Minutes for April 22, 2014 Page 2 AGENDA MODIFICATIONS OR POSTPONEMENTS There were no agenda modifications or postponements. ORAL REQUESTS There were no oral requests. *** PUBLIC HEARINGS Chair Resnikoff read Agenda Item No. 1 into the record as follows: 1. PLN2014-47 Public Hearing to consider the application of Mario Lleverino Lleverino, M. for a Conditional Use Permit (PLN2014-47) to allow live entertainment in conjunction with an existing restaurant (Ciano's) on property located at 280 E. Campbell Avenue in the C-3 (Central Business District) Zoning District. Staff is recommending that this project be deemed Categorically exempt under CEQA. Planning Commission action final unless appealed in writing to the City Clerk within 10 calendar days. Project Planner: Aki Honda Snelling, Planning Manager Ms. Aki Honda Snelling, Planning Manager, presented the staff report as follows: • Reported that Mario Lleverino is seeking a Modification to his Conditional Use Permit. • Described the project site as being at 280 E. Campbell Avenue on the southeast corner of Campbell and First Street, and within a 5,400 square foot tenant space. It is one of three restaurants in this building. Surrounding uses are commercial to the north, east and west and parking to the south. • Stated that the request is to allow the addition of live entertainment. The live entertainment would consist of a live band with up to four musicians playing Latin background music between the hours of 2 p.m. and 11:30 p.m. The live entertainment is intended to enhance ambiance and the dining experience in conjunction with the existing restaurant, Ciano's. • Advised that the performance area would be located near the entrance folding doors and the music would be non-amplified. • Explained that the original Conditional Use Permit was approved in August 2012 to allow a restaurant and bar with late hour operations to midnight daily and 157 total seats (118 dining, 22 outdoor and 17 bar). Ciano's opened last year. • Stated that the existing floor plan layout depicts the sliding doors and represents the area where the band area would be located. • Added that the owner proposes to attract more business along Campbell Avenue with this live music. The live entertainment area would be 100 square feet in area and the relocation of 10 seats and five tables would create this space. • Reported that staff is recommending that a more refined floor plan be prepared. • Said that the main issues include: Campbell Planning Commission Minutes for April 22, 2014 Page 3 o Noise resulting from having a live band plan near the front of the restaurant impacting the main entrance and outdoor seating area. Staff suggests an alternative may be to locate the band performance area further inside the building to help buffer the noise. o Hours of operation -there is concern about the proposal to play live music in the early evening hours as well as up to 11:30 p.m. Staff recommends bringing the live entertainment hours down to 10 p.m. o Tenant Space Design -this tenant space was designed with folding doors to facilitate and encourage an indoor/outdoor dining experience. These doors would have to be closed when the live entertainment is underway and reduces access to the outside patio seating although one man-door would be available to allow server access and patrons to exit. However, that man- door would also have to remain closed while live music is underway except for the servers/patrons coming and going. o Potential for Dancing -Another concern is the potential for this Latin background music to result in dancing. It could be difficult to prevent patrons from dancing to this music. Staff recommends an added condition as well as interior changes including perhaps fixed seating so furniture can't be moved around. • Recommended approval with the draft conditions of approval plus any other conditions the Planning Commission may want to add. Director Paul Kermoyan: • Explained that staff met with the applicant, Mario Lleverino, at the restaurant. • Advised that staff learns from past experience that some conditions are imposed that are difficult to enforce. • Added that the applicant would be responsible for self-enforcing a condition to prohibit dancing. • Said that raises the question of how effectively such a condition can be controlled and how a business will successfully implement it. Commissioner Finch asked if the removal/relocation of 10 seats and five tables would impact occupancy. Planner Aki Honda Snelling said that those seats can be relocated to the back of the restaurant. Commissioner Kendall asked staff to explain what the concern is with dancing. Planner Aki Honda Snelling said that when there is dancing it is more a club than a restaurant-bar and draws more people late into the night. Director Paul Kermoyan said that it is a Code requirement that a restaurant with live entertainment cannot have dancing while a bar with live entertainment can have dancing. Commissioner Dodd asked if another floor plan would be provided with the relocated tables for Planning Commission approval. Campbell Planning Commission Minutes for April 22, 2014 Page 4 Planner Aki Honda Snelling said that the Commission could condition a requirement to provide a revised floor plan to the Community Development Director for final review. Commissioner Dodd asked whether any change of seating requires review of a floor plan. Planner Aki Honda Snelling replied correct. Commissioner Rich asked which restaurants have had dancing. Director Paul Kermoyan listed Sonoma Chicken Coop, The Spot and Cardiff. Commissioner Rich asked for verification that dancing is not allowed there based on their Conditional Use Permits. Director Paul Kermoyan replied yes. Commissioner Reynolds asked staff what suggestions they might have to discourage dancing from occurring. Director Paul Kermoyan: • Stated that the best way to avoid dancing is using deliberate design improvements. • Added that in regards to the building's interior, one way to discourage dancing is to make sure the furnishings near the band area are fixed in place. • Stated that he frequents downtown and often sees violations to the Code. • Said that one option is to locate the band toward the back where there are fixed walls and avoid a dance area creation. • Pointed out that the proposed area is a half circle that is almost made for a dance area so he is not sure how to prevent patrons from dancing other than to minimize the intentional physical improvements to the area. Commissioner Kendall asked if the tables located closest to the band area could be required to be filled with diners. Planner Aki Honda Snelling said that the Planning Commission could condition that. She added that the applicant has noted that some patrons come in for an early dinner then go to the bar area after dining. Commissioner Kendall asked if the band can be limited to particular instruments perhaps limiting horns and drums that can be loud and allowing guitars that are less loud. Can the Commission discuss this option? Director Paul Kermoyan: • Replied yes. • Advised that the applicant originally requested amplification for its music. • Agreed that the Commission could elect to limit the types of instruments. Campbell Planning Commission Minutes for April 22, 2014 Page 5 • Added that the Commission could trust the business owner to do what is necessary to comply. • Stated that the Commission could set an infraction limitation that would bring this use back to the Planning Commission for reconsideration of the conditions of approval. Commissioner Dodd pointed out that Tessora's has no problem with its live music. Was something placed in their conditions of approval to make it so successful? Planner Aki Honda Snelling said that there were no restrictions placed on the types of music Tessora's could have. Director Paul Kermoyan said perhaps it's just the type of music provided that limits problems with Tessora's live entertainment. He added that Little Lou's has live entertainment and no dancing goes on there. It may be due to the type of music. Planner Aki Honda Snelling said that the most recent live entertainment permit was for Regale that was approved with a maximum of four musicians. Commissioner Finch pointed out that there are three locations in the downtown with existing problems. She asked if there has been any action taken by staff on those locations. Director Paul Kermoyan replied yes. There have been citations and an appeal of one such citation. He cautioned that it becomes a drain on staff resources to uphold conditions that are more difficult to enforce. Commissioner Rich asked if the other uses with live entertainment have infraction limits that would bring them back to the Planning Commission. Director Paul Kermoyan: • Said that the City is currently revisiting this issue through the Community Development and Police Departments. • Said there is potential for outreach to the businesses to tell them the City's tolerance before a use would have to come back for further review. • Stated that if the City has a desired vision, conditions have to be effective and work. Commissioner Rich pointed out that if infraction limits are set for this use that same lever doesn't currently exist with the other uses. Director Paul Kermoyan: • Said that he doesn't have the other CUPs in front of him for those other uses tonight. There may be conditions in place. • Suggested making standards clear in the record and let the applicant know that after a specified number of problems their use would need to come back to the Planning Commission. Campbell Planning Commission Minutes for April 22, 2014 Page 6 Commissioner Rich said that he likes setting clear and enforceable limits and asked if setting a specific decibel limit is unreasonable. Planner Aki Honda Snelling: • Said that a standard could be established for decibel limits per the conditions. • Reminded that a Live Entertainment Permit is issued through the Police Department. for approval by Council. • Added that per standards noise cannot be heard more than 50 feet away and for every 50 patrons an additional on-site security guard is required. Chair Resnikoff said that it appears that one guard per 50 patrons after midnight is a Police Department condition but the report indicates that this business will be closing at midnight. Planner Aki Honda Snelling said that the Police Department imposed that condition for a security guard for every 50 patrons. Director Paul Kermoyan reminded that this is supposed to be a restaurant with live entertainment as a background and secondary to this restaurant. Chair Resnikoff asked if any other business has the 50-foot noise distance limit. Planner Aki Honda Snelling replied that is a Code requirement Chair Resnikoff: • Said it appears there is support to limit the size and types of instruments allowed. • Said there is support for a condition requiring this CUP to come back for further review in the event that there are two infractions of its conditions. • Stated that condition 6(j) deals with noise and verifiable complaints and condition 7 states that three violations can result in bringing the CUP back for review and/or revocation. • Concluded that there are levers in place already. Chair Resnikoff opened the Public Hearing for Agenda Item No. 1. Mario Lleverino, Applicant/Owner of Ciano's: • Stated that Ciano's is an elegant Latin cuisine restaurant whose demographic clientele is aged 30 to 55 and a business professional. • Added that he is willing to work with the City. • Pointed out that there are other such uses in nearby cities. Commissioner Kendall asked Mr. Lleverino to elaborate on the kind of music he is proposing. Mario Lleverino: • Said that they are proposing live entertainment between the hours of 2 and 11 p.m. • Added that for special occasions they may have earlier live entertainment. Campbell Planning Commission Minutes for April 22, 2014 Page 7 • Said that they will offer Latin jazz and the music will not be amplified. Commissioner Kendall asked the restaurant's heaviest dining hours. Mario Lleverino said between 7 p.m. and 11 p.m. Chair Resnikoff asked what the typical hours might be for special events. Mario Lleverino replied the dinner hours between 7 p.m. and 11 p.m. Chair Resnikoff asked how many times of year. Director Paul Kermoyan said that the Commission could limit the number of days and hours for special events. Chair Resnikoff said it seems the applicant is agreeable to that. He asked Mr. Lleverino if he had considered other locations in the restaurant for the band. Mario Lleverino explained that he wanted visibility of the band to help draw new business to the restaurant. Chair Resnikoff asked if it is worth having to close the folding doors as required when live music is underway. Mario Lleverina said that the live music would not happen every night. He said that it would be worth it and that live music would help draw new traffic to the restaurant. Chair Resnikoff asked how many special events might be anticipated each year. Mario Lleverino replied the month between late June and late July when the World Cup is occurring every four years would be one example and for holidays such as Cinco de Mayo. Commissioner Finch asked Mr. Lleverino when the restaurant typically closes the folding doors. Mario Lleverino said the folding doors are left open depending upon weather and kept open as long as possible. Laura Moore, Resident on Third Street: • Said that she is here in support of Mario Lleverino's application. • Pointed out that Mario stuck his neck out and brought forth a different concept of food. • Stated that she trusts him to do what he says he will do. • Said it is important to enforce regulations imposed for him and for everyone. • Assured that Mario would do a classy job and deserves the opportunity to have his live music located near the front folding doors. Campbell Planning Commission Minutes for April 22, 2014 Page 8 JoElle Hernandez, Resident on Peter Drive: • Said that the Conditional Use Permit runs with the property and this change too would run with the property. Planner Aki Honda Snelling said that what is under consideration tonight is a Modification to the Conditional Use Permit to add live entertainment. Chair Resnikoff clarified that a future owner operating at this location would need to secure their own live entertainment permit through the Police Department and Council as a live entertainment permit is not automatically transferred. JoElle Hernandez: • Recounted how another business owner she knows had been under the impression that such uses transferred automatically to new owners. • Said that she loves Ciano's. Mario is a great guy and upstanding. • Cautioned that no one knows what happens down the road when this location changes ownership. That uncertainty must be kept in mind. • Stated that she likes to go downtown to the restaurants and this is a great one. • Admitted that she really likes the open air part of this existing restaurant. • Said that she doesn't know why a live band is needed when recorded music is already available. • Questioned whether it is worth closing the folding doors and rearranging seating when the live bands are performing. Chair Resnikoff closed the Public Hearing for Agenda Item No. 1. Commissioner Kendall: • Said that she likes the idea of live music. • Stated that this is louder venue. • Added that live music can be less intrusive than recorded music. • Said that she is not overly concerned about the floor plan. It's right up front. • Admitted that she would hate to see everything closed up when music is underway. • Supported allowing special hours during the month-long World Cup every four years as well as for a specified number of special event days. • Suggested establishing an infraction limit. • Said that on Sundays she could support live music up to 9 p.m. rather than anything later. Commissioner Reynolds: • Said that he was concerned with the direction of the questions. • Said that the Commission is not trying to stifle downtown businesses but rather is looking for protections should something go awry. • Reminded that there are already conditions in place to deal with problems should they occur. • Said that this addition of music at Ciano's brings something vibrant to the downtown. Campbell Planning Commission Minutes for April 22, 2014 Page 9 • Said that "fun" is defined differently by different people. Some people like to get as drunk as they can for their fun while others like to go to a fine restaurant. • Pointed out that this is a classy mature crowd being drawn to Ciano's. • Added that Campbell has a vibrant but safe downtown. • Said that he spent time in Puerto Rico recently and he feels that Ciano's does a very good job with its Latin cuisine. There are no problems there just a lot of fun. That is what Mario Lleverino is trying to bring to Ciano's. • Expressed concern about fixed chairs and tables attached to the floor due to sanitation concerns in regards to cleaning the floors. • Said that dancing is what Latin music is for. It makes people want to dance. • Said that he understands that the city doesn't want a bar or ultra lounge but that's not what Mario wants either. He has agreed to non-amplified music. • Stated that he personally has no problem leaving the folding doors wide open when the bands are playing. • Said that he hopes the Planning Commission will do more to attract a better clientele downtown. • Said that there are provisions in the Conditional Use Permit to deal with problems. • Proposed striking the requirement to fix the table and chairs to the ground intended to prevent the creation of a dance floor. Director Paul Kermoyan clarified that the idea of fixed furnishings was simple offered as a possible suggestion. Commissioner Reynolds said he would like to see the doors kept open with the live music and concluded that he would be supportive of this request for live entertainment. Commissioner Finch: • Proposed turning the music platform away from the street so music is not going outward but rather projecting inward. • Added that perhaps a sound wall or buffer could be positioned behind the band to block sound from escaping out onto the street. • Said that she would like to see the doors closed. • Suggested allowing live music between 7 and 10 p.m. except for special occasions when longer hours would be allowed. • Reminded that approvals go with the land and therefore protections need to be put in place in case Mario was to sell to a different operator. • Sad that she is concerned and would like a condition for seating arrangement approval and approval for a revised floor plan. She has no problem with fixed placement of tables. • Said that if three infractions to the conditions occur, the use would need to be brought back to the Commission. Chair Resnikoff: • Said there is a difference between a Conditional Use Permit and a Live Entertainment Permit. • Pointed out that the original Conditional Use Permit for this tenant space was approved for a different operator. Campbell Planning Commission Minutes for April 22, 2014 Page 10 • Said that in this case, the live entertainment component is subject to processing by the Police Department of a Live Entertainment Permit for approval by Council. Commissioner Dodd: • Said that she doesn't want to limit a business because of problems with other businesses but she also doesn't want to burden the nearby neighbors either. • Stressed the need to have all stakeholders participate in the process. • Said that the applicant honoring the approved floor plan can serve as a deterrent to dancing occurring if it is not allowed. • Supported limiting live entertainment between the hours of 7 and 10 p.m. on Thursday, Friday and Saturday. • Pointed out that per the existing conditions of approval, the doors already must be closed by 10 p.m. Commissioner Rich: • Said that he struggled with this one. • Stated he would like to offer some flexibility for this business. • Reminded that right now some other businesses in the downtown are not complying completely with their conditions of approval. • Said that his main concern is hours to 11:30 p.m. • Said that he favors live music as it helps develop ambiance but again he is concern about having it as late as 11:30 p.m. Chair Resnikoff: • Said that he has no issue having the folding doors closed at times there is live music underway. • Said that he personally likes an open-air restaurant but this owner indicates he has no problem having to close those doors when live music is in play. • Suggested that a set number of days could be established to allow live music. Thursday, Friday and Saturday is a good start. • Pointed out that this applicant can modify hours and days for live entertainment in the future if things go well. • Admitted that he doesn't like the suggestion for fixed tables. Commissioner Reynolds said that while this applicant is not asking for dancing to occur, due to human nature some people may be moved to dance to this live music. While some may be content tap their feet or nod their heads to music there are others who must simply get up and dance. That can't be controlled. Chair Resnikoff: • Said that a business owner is held responsible for what goes on in their business. They are the only people who can be held responsible. • Said that he could support later music on weekends and additional special events/days/hours. • Concluded that more restrictions are not necessary as they already exist in the conditions of approval. Campbell Planning Commission Minutes for April 22, 2014 Page 11 Commissioner Rich said he believes allowing live entertainment only between 7 and 10 p.m. is too restrictive. Commissioner Reynolds said he agreed. He said he and his wife are early diners and he would like music when he has dinner early at 5 p.m. Commissioner Dodd: • Said that she would be okay with music beginning at 6 p.m. and had recommended 7 to 10 p.m.. because Mario Lleverino had indicated it was his busiest dining period. • Reiterated that she can support live entertainment between the hours of 6 p.m. and 10 p.m. on Thursday, Friday and Saturday. Chair Resnikoff asked Commissioner Dodd her position on allowing extra days for special events. Commissioner Dodd: • Said that she likes the idea of special days. • Added that she recommends seeing how it works and then the applicant can come back for more. Commissioner Reynolds: • Cautioned that every time this is brought back to the Planning Commission that process reopens the entire Conditional Use Permit. • Encouraged the Commission to be less restrictive on the hours for the live entertainment. • Reminded that a mature crowd dines earlier. • Added that he doesn't want to restrict a business out of business. • Reiterated his support for more hours of unamplified music. Commissioner Finch: • Pointed out that Villa Ragusa came in for a special event permit for New Year's Eve. • Said there is no reason for a business owner to fear coming back to the Planning Commission for additional uses. Director Paul Kermoyan advised that every business has its own specific conditions for approval. Commissioner Dodd: • Said that other permits were approved without specific limitations and she does not want to look back and say, "We should have done this." • Added that while she wants to be considerate of this business she also wants to protect what's working too. Commissioner Kendall: • Stated she could support live music between the hours of 5 p.m. and 11 p.m. on Thursday, Friday and Saturday. Campbell Planning Commission Minutes for April 22, 2014 Page 12 • Added that she would limit it to 5 p.m. to 9 p.m. on Sunday. • Said she could support allowing special events to occur during the World Cup season (month long between late June and late July) that happens every four years as well as six days of pre-specified event dates for the hours of 2 p.m. through 11 p.m. • Suggested setting a standard (dancing and/or noise complaints) of three infractions to bring this permit back to the Commission for further consideration. • Supported leaving the doors closed when the live music is in play. Commissioner Reynolds offered to make a motion. Commissioner Dodd stated that she was not okay with music up to 11 p.m. and that 10 p.m. is the latest that she could support. She added that she is okay with music on Sunday between 5 and 9 p.m. and on Thursday, Friday and Saturday between the hours of 6 and 10 p.m. Commissioner Rich said that he was okay with live music between 6 and 10 p.m. and has no problem with the folding doors being kept open as long as the live music is non- amplified. Director Paul Kermoyan: • Reported that the City doesn't allowed amplified music on the streets. • Said that when amplified live music is occurring in the downtown it is a part of the DCBA (Downtown Campbell Business Association) events. There is no City permit process and no entitlement given. • Reiterated that the requirement is that music not be audible beyond 50 feet off the premises. • Said that enforcement is difficult because it is often difficult to ascertain where noise is coming from. Commissioner Finch: • Agreed with Commissioner Reynolds that an older crowd does tend to dine earlier. • Suggested that a buffer be placed behind the stage (perhaps 4 foot by 6 foot) made of sound absorbing material to help block any sound from going outside the restaurant. • Added that she agrees with the proposed hours for live entertainment. Chair Resnikoff stated that he supports the requirement that the doors are closed when the live music is underway. Commissioner Kendall suggested that the World Cup could be treated as a special event. She added that she didn't like the idea of a sound wall. Motion: Upon motion of Commissioner Finch, seconded by Commissioner Kendall, the Planning Commission adopted Resolution No. 4149 approving a Modification to a Conditional Use Permit (PLN2014- 47) to allow live entertainment in conjunction with an existing Campbell Planning Commission Minutes for April 22, 2014 Page 13 restaurant (Ciano's) on property located at 280 E. Campbell Avenue, subject to the conditions of approval as modified: • Require the submittal of a modified seating plan; • That the hours for live entertainment be limited between 6 and 10 p.m. on Thursday, Friday and Saturday; between 5 and 9 p.m. on Sunday; • That the folding doors be kept closed when live music is underway; and • That an additional condition be added allowing six additional days of extended live entertainment between the hours of 2 and 10 p.m. by the following roll call vote: AYES: Dodd, Finch, Kendall, Resnikoff, and Rich NOES: Reynolds ABSENT: None ABSTAIN: None Chair Resnikoff advised that this action is final unless appealed in writing to the City Clerk within 10 calendar days. *~* Commissioner Kendall advised that she must recuse from participating in the discussion on one of the five potential HRI properties as she lives within noticing distance. It was decided to deal first with the four properties Commissioner Kendall could participate in and then she would leave the dais during the fifth property discussion and vote. Chair Resnikoff read Agenda Item No. 2 into the record as follows: 2. PLN2014-93 Public Hearing to consider the City-initiated application for City-initiated the designation of up to 15 properties as Historic Resource Inventory Properties (PLN2014-93). The following properties are under consideration as Historic Resources: 146 W. Campbell Avenue; 266 W. Campbell Avenue; 39 N. Central Avenue; 260 N. Central Avenue; 616 EI Patio Drive; 35-45 S. First Street; 1940 E. Hamilton Avenue; 32 Page Street; 40 Page Street; 56 Page Street; 62 Page Street; 109 S. Second Street; 104 Sunnyside Avenue; 106 S. Third Street (aka 157 S. Rincon Avenue); and 77 S. Third Street. Staff is recommending that this project be deemed Categorically exempt under CEQA. Tentative City Council Meeting Date: May 6, 2014. Project Planner: Aki Honda Snelling, Planning Manager Campbell Planning Commission Minutes for April 22, 2014 Page 14 Ms. Aki Honda Snelling, Planning Manager, presented the staff report as follows: • Reported that this is aCity-initiated application to add five properties to the Historic Resource Inventory. • Advised that she would begin with a discussion of four of the five properties: 146 W. Campbell Avenue, 266 W. Campbell Avenue, 616 EI Patio and 35-45 S. First Street. • Informed that of the 15 property owners approached in this third round, 10 requested opting out of consideration of their property as a potential HRI property. Per the City Council, any owners who wish to opt out can do so. • Explained that the HRI is a list of significant and potential significant properties. Of the 187 properties included on the HRI, there are three levels of ranking. The first level is Landmark of which there are 55 including the Ainsley House and the Alice Avenue Historic District. The second level is HRI properties, of which there are 86. These properties have historic significance but are not located within an Historic District or considered to be eligible as a Landmark. The third level is the "Potentials" of which there are 46. • Reported that this is the third round of consideration since 2011. In 2011, Council conducted a Study Session and encouraged the Historic Preservation Board to consider potential additions to the HRI. • Described 146 W. Campbell as a bungalow style located south of the Campbell Community Center; 266 W. Campbell as a Tudor-style architecture; 616 EI Patio; and 35-45 S. First Street as Colonial Revival-style architecture. • Stated that at its Special Meeting held on April 17th, the HPB voted to recommend that the Planning Commission forward a recommendation to Council to add six properties to the HRI. However, after that time and prior to tonight's hearing, one of the six remaining property owners under consideration also elected to opt out of consideration for HRI at this time. • Explained that the Planning Commission can make a recommendation to Council, based on the Municipal Code, consideration of the HPB recommendations, and with the finding of conformance to the City's Historic Ordinance and General Plan, for the addition of four additional properties to the City's HRI. Chair Resnikoff asked if there were questions of staff. There were none. Chair Resnikoff opened the Public Hearing for Agenda Item No. 2. JoElle Hernandez, Chair of the Historic Preservation Board: • Thanked the Planning Commission for considering this item. • Reported that there have been a lot of potential property owners that have "opted" out of consideration of HRI designation despite a lot of outreach on the part of the Historic Preservation Board. She is not sure why. • Advised that the outreach efforts included letters from the City and additional letters from the HPB. Flyers were distributed that gave general information about the properties, brochures explaining the HRI and why designation is good as well as other Frequently Asked Questions being answered. Phone numbers were provided to these potentials in the event that questions were raised. Campbell Planning Commission Minutes for April 22, 2014 Page 15 • Reported that the HPB Social will occur at the end of May. May is National Historic Preservation Month. Additional letters will be sent to Historic Resource Inventory (HRI) potential site owners encouraging attendance to learn more by attending the Social. • Assured that HPB has been trying to move as many HRI-potential properties to the actual HRI list. • Pointed out that historic designation actually adds to a property's value. Commissioner Rich asked if HPB heard back from all owners. HPB Chair JoElle Hernandez replied that she was not sure. She further explained that the City utilizes an "opt-out" basis. If HPB doesn't hear back from a potential HRI property owner with a request to opt out, HPB moves forward. Commissioner Rich asked if it might be possible that these owners may be unaware of that requirement to opt out. Director Paul Kermoyan: • Explained that several notices were provided to owners. There is a minimal chance of not having received notice. If mail is undeliverable, it gets returned. • Assured that ample opportunity was given to opt out and the necessary form to do so was provided to each one. • Reported that the opt-out process was supported by Council. Planning Manager Aki Honda Snelling added that one more public notice would also be sent out prior to the Council hearing. Commissioner Rich asked if notice would be sent to the resident or the property owner. HPB Chair JoElle Hernandez replied that it is the property owner who is noticed. Director Paul Kermoyan added that the practice of designating HRI properties is a matter of policy in the Conservation Element of the General Plan. Commissioner Kendall pointed out that by being placed on the HRI, an owner could petition to be a Mills Act property, which is potentially a real benefit. HPB Chair JoElle Hernandez said that is correct. A property is not eligible for the Mills Act unless it is on the HRI. Chair Resnikoff said that he now better understands the outreach efforts. He asked if there is a process to be removed via the Council. HPB Chair JoElle Hernandez said yes. Chair Resnikoff: Campbell Planning Commission Minutes for April 22, 2014 Page 16 • Pointed out that per the written comments received from some owners who elected to opt out of consideration for HRI designation, several indicated concern that such designation could hurt resell values. • Asked if HPB thinks there is a way around that concern in the future. HPB Chair JoElle Hernandez: • Said that it will take further education. • Assured that HRI designation does not hurt resale values in the least. • Added that the City's Planning Department is very accessible to these owners for information on the impacts of HRI designation. • Stated that designation can be seen as a huge benefit and value added to a property. • Admitted that she does not know why people might think that HRI status is limiting to a property owner. • Said that they are welcome to attend HPB meetings or socials to learn more. Chair Resnikoff asked if opting out of HRI status is a permanent action. HPB Chair JoElle Hernandez: • Replied no. • Assured that those who have currently opted out would be approached again in the future. • Pointed out that there could be new owners in the future who may be more interested in inclusion on the HRI. • Reminded that any structure 50 years or older is considered to be historic per State law. Chair Resnikoff closed the Public Hearing for Agenda Item No. 2. Commissioner Reynolds: • Thanked the HPB and staff for their work done on this project. They have all done a fantastic job. • Asked HPB Chair JoElle Hernandez to pass that compliment on to the rest of the HPB. Motion: Upon motion of Commissioner Dodd, seconded by Commissioner Reynolds, the Planning Commission adopted Resolution No. 4150 recommending that the City Council add four properties as Historic Resource Inventory Properties: 146 W. Campbell Avenue; 266 W. Campbell Avenue; 616 EI Patio Drive; and 35-45 S. First Street, by the following roll call vote: AYES: Dodd, Finch, Kendall, Resnikofff, Reynolds and Rich NOES: None ABSENT: None ABSTAIN: None Campbell Planning Commission Minutes for April 22, 2014 Page 17 Chair Resnikoff advised that this would be forwarded to Council for final action at its meeting on May 6, 2014. Commissioner Kendall left the dais for the discussion of the fifth proposed HRI addition. Ms. Aki Honda Snelling, Planning Manager, presented the staff report as follows: • Reported that the final property under consideration is located at 106 S. Third Street (aka 157 E. Rincon Avenue). The structure is a 1920's English Cottage style. • Recommended that the Planning Commission forward a recommendation to Council to add this property to the HRI. Chair Resnikoff re-opened the Public Hearing for Agenda Item No. 2. Chair Resnikoff re-closed the Public Hearing for Agenda Item No. 2. Motion: Upon motion of Commissioner Finch, seconded by Commissioner Dodd, the Planning Commission adopted Resolution No. 4151 recommending that the City Council add a property as a Historic Resource Inventory Property located at 106 S. Third Street (aka 157 S. Rincon Avenue), by the following roll call vote: AYES: Dodd, Finch, Resnikofff, Reynolds and Rich NOES: None ABSENT: None ABSTAIN: Kendall Chair Resnikoff advised that this item would be considered by the City Council for final action at its meeting of May 5, 2014. Commissioner Kendall returned to the chambers and dais. *** Chair Resnikoff read Agenda Item No. 3 into the record as follows: 3 PLN2013-237/238 Public Hearing to consider the application of Hamilton Hamilton Campbell LLC of a Planned Development Permit (PLN2013- Campbell LLC 237) and Modification (PLN2013-238) to a previously approved Planned Development Permit to allow the construction of a 172,000 square foot office building, a 11,500 square foot office building, and a 7-story parking garage with two levels of parking underneath; on property located at 675 8~ 705 Creekside Way in a P-D (Planned Development) Zoning District. Staff is recommending adoption of a new Mitigated Negative Declaration for this project. Tentative City Council Meeting Date: May 20, 2014. Project Planner: Rick Smeaton Campbell Planning Commission Minutes for April 22, 2014 Page 18 Ms. Aki Honda Snelling, Planning Manager, presented the staff report as follows: • Reported that this application is fora Planned Development Permit and a Modification to a Planned Development Permit for development of 675 and 705 Creekside Way. • Explained that the Modification is to a previous Planned Development Permit that approved a 172,000 square foot office building with 165 parking spaces. Additionally, aseven-story parking structure will contain 817 spaces. The structure is 72 feet high. • Advised that the Planned Development Permit sought is for a new one-story 11,500 square foot office building that is 24-feet high and includes 39 surface parking spaces. • Added that the final request is for an extension of approval to June 11, 2021. • Described the project site as being south of Hamilton and Highway 17. Surrounding uses are Creekside Way to the east, the Los Gatos Creek to the south, Highway 17 to the west and the Marriott Hotel. • Reported that the original project expired in 2005 and was reinstated in 2006 by Council. In August 2008, Council extended the approval and the developer prepaid for the Campisi Extension. In 2010, another extension was granted and the hotel was built. • Explained that one difference now from the original is that two six-story parking structures have been consolidated into one seven-story with two levels of underground parking. There have also been architectural changes to a more contemporary design. The 11,500 s.f. office building will incorporate tinted glass, with the massing of the structure broken up by architectural features. • Described the proposed parking structure as seven above-ground levels and two below-ground levels for a total of nine. The maximum height of this garage structure is below 75 feet. It will be concrete with metal siding. • Reported that an updated traffic report was prepared in March 2014. • Stated that the changes to the project are minor and similar to what was approved before. There is a new third driveway. The level-of-service (LOS) in regards to traffic remains the same as estimated in the previous study. The traffic consultant has determined no circulation problems. • Said that there will be 1,021 parking spaces. Of those, 633 are within the 172,000 square foot building that will serve both the office and hotel. There is a parking agreement between the Marriott and the office developer. The hotel consists of 165 rooms but had originally been approved for 288 rooms. • Said that the proposed landscaping plan includes a row of redwoods along the PG&E Substation that the applicant will try to relocate elsewhere on site. • Explained that the applicant is asking for a seven year approval period to June 2021. However, the typical time frame for such an approval is two years. In this case, staff is recommending an extended three-year time frame since this is complex project with phasing required. • Said that she met with the applicant and was advised that there is a financing issue in that it s difficult to build the parking structure together with the small office building. They must start with the large office building. The proposal is to have the small office building constructed first at which time the larger site would be used to Campbell Planning Commission Minutes for April 22, 2014 Page 19 provide temporary surface parking. However, this raises the question of where the parking would be provided while the large office building is being built. Director Paul Kermoyan: • Said that he met with the applicant today after he had reviewed the staff report. • Stated that it is staff's understanding that as the project is currently proposed the parking structure would have to be built with the first building constructed to ensure parking once the building is completed. At this time, it is likely that they would want to build the small office building before the surface parking is removed. When the large structure is built the question becomes "where the parking for that large structure would be?" • Said that a condition is needed requiring the construction of a temporary parking lot to the standard set by the City Engineer. • Added that as currently written Condition 11 stipulates that before any offices are built, the parking garage must be constructed first. Planning Manager Aki Honda Snelling: • Said that staff is supportive of this project and recommends that the Planning Commission: o Adopt a resolution recommending that Council approve a Mitigated Negative Declaration. o Adopt a resolution recommending Council approval of a Modification to a Planned Development Permit to allow the construction of a 172,000 square foot office building. o Adopt a resolution recommending Council approval of a Planned Development Permit to allow the construction of a 11,500 square foot office building. o Extend the approvals for this development for athree-year period to June 11, 2017. o Consider changes to Condition 11 in regard to the project's construction phasing. Chair Resnikoff said that as there is deficient parking proposed with the small building would it be possible to reduce that building size so that there is no longer a deficiency in parking. Director Paul Kermoyan said that 51 parking spaces are required for the small office building as currently proposed and the number of spaces to be provided is 39 spaces. He added that the applicant has indicated a willingness to reduce the size of this smaller office building. Commissioner Kendall asked about the transit programs and VTA passes referenced on Page 8. Director Paul Kermoyan said that a parking modification is not requested and is not noticed to be before the Commission as part of tonight's consideration. Campbell. Planning Commission Minutes for April 22, 2014 Page 20 Chair Resnikoff said that could be added as a condition of approval if the Commission wants to do so. Commissioner Finch presented the Site and Architectural Review Committee report as follows: • SARC reviewed this proposal at its meeting on April 8, 2014. • Listed some of the comments of SARC that included documenting the hotel parking requirements as a recorded document. • Suggested a traffic study after the project is built with possible remedies if they should became necessary. • Said that the applicant agreed to an extension from the normal two-year approval period to an extended three year period. • Suggested that in order to reduce potential glare impacts from the large office building onto Highway 17 that non-glare glass be utilized. Chair Resnikoff opened the Public Hearing for Agenda Item No. 3. Scott Trobbe, Applicant, Hamilton Avenue LLC/South Bay Development: • Said that he has worked on Dell Avenue for over 30 years. • Thanked the Commission for allowing this project to be revisited and thanked Planning Manager Aki Honda Snelling for her thorough staff presentation. • Commented that the City has very qualified people working for it. • Explained that they have owned this project since 2008. They have elected not to build the originally approved plans. • Said that a lot is happening with parking and phasing. • Reminded that the parking garage will serve parking needs of both the office building and the existing hotel. Parking Agreements have been in place since 2000. • Reported that they could not build this site (garage) today as it sits on an easement held by PG&E. There are a combination of issues that make this a quirky site. • Said that their vision is focused on the number of buildings. Their architectural style is now a more geometrical one. They have added a greenscape area to the project. • Said that there is an understanding about the parking. Who will share it? How that works? • Added that in order to make it simple, they are adding parking under the large office building. • Assured that they can identify the parking to the specific needs. • Pointed out that the now seven-story parking garage with two subterranean levels results in something that is just eight-feet higher than before. • Added that by removing one of the two previously proposed parking garages and replacing it with cone-story office building, that change gives the site a much better opportunity for success. • Reported that the Hotel is glad that the new garage structure will offer screening of their view of Highway 17 and the PG&E Substation as seen from the Hotel. • Concluded that they now have a project they can execute at this time. Campbell Planning Commission Minutes for April 22, 2014 Page 21 • Said that the City can really be proud of the proposed phasing and parking aspects of this project. • Reiterated that they can't build a large office building without building the parking structure at the same time. • Asked for flexibility and advised that the market in Campbell is hot right now. A small office building will be in high demand. As conditioned right now, the small office cannot be built until the garage is constructed. • Explained that their solution is to build temporary parking and offer valet parking. • Added that they are in agreement that the signalized intersection would go in first no matter what gets constructed first. Commissioner Rich: • Asked for further details of how the project would transition. If the small office is built first what happens after that? • Inquired what occurs if the larger building is built before the parking garage. Scott Trobbe, Applicant, advised that there is only one solution. The parking garage has to be constructed before the large office building. A temporary lot would be made available to valet park for the hotel and for 910 E. Hamilton Avenue. Commissioner Rich clarified that the proposal is for Phase II to include the construction of the garage prior to the construction of the large office building. Scott Trobbe, Applicant, replied yes. It would be necessary to have the necessary parking in place first. Commissioner Rich asked Mr. Scott Trobbe how long it might take to construct the garage. Scott Trobbe replied that it would be somewhere between six and eight months depending on the time of year. The garage also includes two levels below ground. He added that the large office building would take between 14 and 16 months to construct. Commissioner Kendall asked how many parking spaces the small office building requires. Scott Trobbe, Applicant: • Said that the ratio approved for the office building in 2000 required them to reduce the size of the building. They were able to do so without compromising the architecture. • Stated that the hotel is required to get 84 spaces of dedicated parking. • Advised that a new agreement in place identifies every space in the parking garage that is assigned to the hotel. • Added that 900 E. Hamilton is allocated 328 spaces although per their letter they only require 293. However, they continue to work with the 328-space allotment of parking to account for the worse case scenario. Campbell Planning Commission Minutes for April 22, 2014 Page 22 Commissioner Reynolds asked Mr. Trobbe the reasoning for his initial request for a seven-year extension. Scott Trobbe replied that he understands where the City is coming from in preferring to limit to a three-year extension. While he would prefer the seven-year extension he requested, he still hopes for some latitude or some middle ground. Chair Resnikoff asked Mr. Trobbe if there is anything that might prevent the placement of a temporary parking lot. Scott Trobbe replied no. He said that he understands the requirements they must comply with and assured that they would so comply. Chair Resnikoff asked what size reduction would be made to the small office building so that parking is adequate rather than deficient. Scott Trobbe said that it would be between a 1,000 to 1,700 square foot reduction in size. Chair Resnikoff asked what would determine their ability to retain and relocate the redwood trees. Scott Trobbe: • Said that the proposal is based upon an arborist's advice. • Stated that it seems these trees are young enough to move. • Pointed out that they have also planted 31 redwoods along the PG&E substation to great expense. Chair Resnikoff closed the Public Hearing for Agenda Item No. 3. Commissioner Reynolds: • Stated that this is a beautiful project and there is a desperate need for more office space, which helps bring jobs and improve the local economy. It also creates construction jobs. • Said that he understands the request for an extension of time for completion of this project and can consider amid-point between staff's recommendation of three years and the applicant's request for seven years. • Recommended amid-point of perhaps five years with the opportunity to extend it with a good faith effort. • Stated that it is good to see this land developed. It will be quite an asset to that corner. It is near transit and a good combination of uses. • Concluded that he would be supportive. Commissioner Rich: • Said he would echo Commissioner Reynolds' comments. • Stated that seven years is too long. Four or five years would be okay and allow some flexibility. Campbell Planning Commission Minutes for April 22, 2014 Page 23 • Supported the construction of the small office building first. Commissioner Finch: • Said that after 30-plus years using the nearby off-ramp, she can see this area is already improved. • Admitted that she had been concerned with traffic and personally will not use Creekside much once this is built. • Reported that SARC requested a traffic study be completed in three years. • Expressed support for the four to five-year extension. However, she is concerned about future fluxuations in the economy and hates to see this approval go out as far as 2021. That's too far out. • Agreed that this development will result in a vast improvement and bring jobs to the community. It will enhance the City except for traffic on Creekside but the Traffic consultant says it is viable. Commissioner Dodd: • Said that she likes the reduction in the smaller office building and that the reduction is occurring at the back where it won't impact the front elevation. • Added that she is glad that the trees can be moved. • Stated that she is okay with changing the phasing order. • Said that she prefers an extension to no more than four or five years. • Said that the requirement for a traffic study in three years should also be aligned with actual occupancy of the buildings. Commissioner Reynolds: • Stated that it is important to keep in mind that the City needs an updated Circulation Element that is citywide. • Added that a focus should be made on Creekside, Bascom & Hamilton; Highway 17 & Hamilton; Winchester & Hamilton. A study is needed and the Circulation Element updated according. Commissioner Dodd said that the traffic study being .requested by SARC was in relation to the driveway and site egress. Commissioner Finch said it is important to make sure that this is not adding to a problem and that there are safeguards in place to make sure of that. Chair Resnikoff: • Agreed that office space is needed. • Stated that this is a beautiful project. • Supported revising the phasing so that the small office building can be constructed first. He also indicated support for a reduction of the smaller office building so that it is self-contained and compliant in regards to parking. • Concurred that there are large traffic issues in the City. • Suggested that the traffic study requested by SARC in three years may need to be modified to five years and/or when occupancy of all structures has occurred. • Reiterated that the future traffic study could be tied to the extension of time. Campbell Planning Commission Minutes for April 22, 2014 Page 24 Commissioner Kendall said that she agreed. She added that this is a nice project and she can support five years to get this much work completed. It is the right amount of time. Director Paul Kermoyan: • Referenced Condition 52 that indicates "upon issuance of grading for 675 or 705 Creekside Way." • Pointed out that if the smaller building is built first there is no new study needed. • Reiterated the sequence as it appears the Planning Commission is leaning toward in three phases: o Phase I: The small building is to be constructed first and valet parking for the hotel to be provided on the large surface parking lot. o Phase II: Next construct the parking structure and the temporary lot to valet park the hotel. o Build the main office building. • Suggested that the Commission make sure that the motion reduces the size of the small office building commensurate with the parking provided on site. Motion: Upon motion of Commissioner Reynolds, seconded by Commissioner Kendall, the Planning Commission took the following actions: • Adopted Resolution No. 4152 recommending that the City Council adopt a Mitigated Negative Declaration for a project at 675-705 Creekside Way; • Adopted Resolution No. 4153 recommending that the City Council approve a Planned Development Permit (PLN2013-237) to allow the construction of an 11,500 square foot office building on property located at 705 Creekside Way, as modified: o with a reduction of this small office building to a square footage that can be accommodated by the on-site parking; and o to extend the Planned Development expiration date for an additional five (5) years ending on June 11, 2019; • Adopted Resolution No. 4154 recommending that the City Council approve a Modification (PLN2013-238) to a previously approved Planned Development Permit to allow the construction of a 172,000 square foot office building, aseven- story parking structure with two levels of underground parking on property located at 675 Creekside Way, as modified: o to extend the Planned Development expiration date for an additional five (5) years ending on June 11, 2019; o with the project phasing to include: small office building first with valet parking on the parking garage site; next construction of the large parking garage structure and a temporary parking lot on the large office Campbell Planning Commission Minutes for April 22, 2014 Page 25 site; and finally the construction of the large office building, o Condition 52 requiring a traffic study at three years if no grading or building permit has been pulled for 675 Creekside Way, subject to the conditions of approval; by the following roll call vote: AYES: Dodd, Finch, Kendall, Resnikoff, Reynolds, and Rich NOES: None ABSENT: None ABSTAIN: None Chair Resnikoff advised that this item would be considered by Council at its meeting of May 20, 2014, for final action. *** MISCELLANEOUS 4. Mayor's Meeting Update Chair Resnikoff provided an update as follows: • Reported that the Commissioners Dinner was set for the Orchard City Banquet Hall. It will be a more informal event with more mixing occurring. • Said that future Mayor's Meetings topics will include updates on projects such as Dell Avenue and the Civic Center Master Plan and on how to improve services to the public including availability of more on-line services. • Stated that a report from Parks & Recreation advised that PG&E can remove and/or trim back trees. • Said that HPB explained why initial 19 proposed additions to the HRI ultimately were reduced to the five discussed tonight. • Provided a reminder that the Mayor's State of the City event would occur on May 14th in the Orchard City Banquet Hall. • Asked if there were any topics or issues members of the Planning Commission would like to see brought up at future Mayor's Meetings. Commissioner Reynolds said that he likes these Mayor's Meeting updates and suggested that minutes from the meetings be provided. Chair Resnikoff said he would forward that suggestion on. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR Director Paul Kermoyan: • Advised that the second community meeting for the Housing Element Update would occur on April 29th at the Orchard City Banquet Hall. Campbell Planning Commission Minutes for April 22, 2014 Page 26 ADJOURNMENT The Planning Commission meeting adjourned at 10:35 p.m. immediately to a Study Session and subsequently to the next Regular Planning Commission Meeting of May 13, 2014. ~~ ~ SUBMITTED BY: Co ' e ,Recording Secretary APPROVED BY: / ~~--`~ `~~ Paul Resni ff, C it / ~ ATTEST: Paul Kermoyan, Secretary