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2024.1.23 PC Min PLANNING COMMISSION REGULAR MEETING MINUTES Tuesday, January 23, 2024 I 7:30pm City Hall Council Chamber CALL TO ORDER The Regular Planning Commission meeting of January 23, 2024, was called to order at 7:30 pm by Chair Zisser, and the following proceedings were had to wit. ROLL CALL Staff Present: Rob Eastwood, Director Bill Seligmann, City Attorney Stephen Rose, Senior Planner Daniel Fama, Senior Planner Nishant Seoni, Contract Associate Planner Ken Ramirez, Administrative Analyst APPROVAL OF MINUTES 1. Approval of Minutes of January 9, 2024 (Roll Call Vote) ➢ Meeting Minutes, 1/9/2024 (Regular Meeting) ➢ Commissioners present at 1/9/24 Planning Commission meeting approved meeting minutes. o Commissioners Fields and Buchbinder abstained. Planning Commissioners Present: Alan Zisser, Chair Matt Kamkar, Vice Chair Adam Buchbinder Davis Fields Michael Krey Cori Majewski Planning Commissioners Absent: Maggie Ostrowski Campbell Planning Commission Meeting Minutes – January 23, 2024 Page 2 of 11 COMMUNICATIONS Director Eastwood reported : • The Planning Commission received a letter an hour ago concerning Agenda Item 5, which was distributed via email and hard copies. AGENDA MODIFICATIONS OR POSTPONEMENTS None. ORAL COMMUNICATIONS This portion of the meeting is reserved for individuals wishing to address the Planning Commission on matters of community concern that are not listed on the agenda. In the interest of time, the Chair may limit speakers to five minutes. Please be aware that State law prohibits the Commission from acting on non-agendized items, however, the Chair may refer matters to staff for follow-up. Opened Public Comment. No public comments were received. Closed Public Comment PUBLIC HEARING Note: Members of the public may be allotted up to two (2) minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of five (5) minutes for opening statements and up to a total of three (3) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Planning Commission’s consent at the meeting. Vice Chair Kamkar disclosed with respect to Item 3, 946 McGlincy Lane, that he had visited the site. Commissioner Krey disclosed with respect to Item 2, 1402 Camden Avenue, and Item 3, 946 McGlincy Lane, that he had visited both sites but spoke to no one. Due to technical difficulties it was requested the Planning Commission hear Item 3 before Item 2. Campbell Planning Commission Meeting Minutes – January 23, 2024 Page 3 of 11 3. PLN-2021-215 – 946 S McGlincy Lane Continued Public Hearing to consider the request of Denny Kobza on behalf of Terra Firma Development & Holdings LLC to allow construction of an approximately 10,250 square foot industrial/warehouse building, with an exception to the side setback requirement, on property located at 940/946 S McGlincy Lane. The application under consideration is a Site and Architectural Review Permit. File No.: PLN-2021-215. Staff is recommending that this item be deemed Categorically Exempt under CEQA. Planning Commission action is final unless appealed in writing to the City Clerk within 10 calendar days. Project Planner: Daniel Fama, Senior Planner. Recommended Action: Adopt a Resolution (reference Attachment A), approving a Site and Architectural Review Permit. Chair Zisser opened the Public Hearing for Agenda Item No. 3. Daniel Fama, Senior Planner, provided the staff report. Chair Zisser asked for Commission questions of staff. Chair Zisser, Vice Chair Kamkar, and Commissioners Buchbinder, Krey, Fields, and Majewski had questions and Planner Fama responded. Chair Zisser opened Public Comment. Brandon Pasek of Terra Firma Development & Holdings LLC, Property Owner, made a presentation. Chair Zisser asked for Commission questions for the property owner. Chair Zisser and Commissioner Buchbinder had questions and Mr. Pasek responded. Chair Zisser asked for members of the public wishing to speak. There were no public comments. Chair Zisser closed Public Comment. Chair Zisser asked for Commission discussion. Commissioner Fields was sympathetic to neighbors losing property sight lines, but said a lot of effort had been put into allowing similar sized properties to be the same height, and as the applicants are following all guidelines he found nothing to cause him to deny the project. Commissioner Majewski agreed with Commissioner Fields that the project is in line with what is allowed in that industrial area. She noted the properties are oriented to be free of shadow; and Campbell Planning Commission Meeting Minutes – January 23, 2024 Page 4 of 11 also noted neighbors’ concerns regarding shading, but she did not believe it to be a valid reason to deny the project. Commissioner Buchbinder did not believe this should be discretionary. He said the rules are straightforward and they are just making it extra uncertain. He noted there are already trees casting shadows on the neighboring properties, and he sympathized with the difficulty of having views change after many years but said this warehouse would not be a skyscraper. Commissioner Krey agreed with his fellow commissioners and he supported the project, but said there is definitely an impact to the neighbors and he sympathized with them. He acknowledged the project follows the rules and the area is industrial where this type of project is allowed to happen. He said it is unfortunate that the parapets are not included as part of the building height, but said it could have been a lot worse for the neighbors. He questioned how much it would help to require a 12-foot setback rather than 10 feet. Vice Chair Kamkar agreed with his fellow commissioners that the applicant has complied with all the requirements and rules. He said it is a good project and he did not believe it would impact the neighbors as much as they fear. Chair Zisser agreed with his fellow commissioners that the applicant complies with the City’s requirements and he supported the project. He appreciated the neighbors’ concerns, but said anyone buying property adjacent to an industrial area takes a risk as to what happens there in the future. He noted the neighbors’ back yards contain many trees to provide a buffer. He said there might be some shadowing, but that is what they deal with as the City grows. Motion: Upon motion by Commissioner Krey, seconded by Commissioner Fields, the Planning Commission motioned to grant approval of a Site and Architectural Review Permit to allow construction of an approximately 10,250 square foot industrial/warehouse building, with an exception to the side setback requirement, on property located at 940/946 S McGlincy Lane. File No.: PLN- 2021-215, by the following roll call: AYES: Fields, Majewski, Buchbinder, Krey, Kamkar, Zisser NOES: None ABSENT: Ostrowski ABSTAIN: None Chair Zisser closed the Public Hearing for Agenda Item No. 3. 2. PLN-2023-174 – 1402 Camden Avenue Public Hearing to consider the request of Roddy Diaz on behalf of Latin Asian Fusion Kitchen to allow for beer and wine sales (liquor establishment) in association with an existing restaurant with a 5:00 AM operational opening (late night activities), community cooking classes, and private events on property located at 1402 Camden Avenue. The Campbell Planning Commission Meeting Minutes – January 23, 2024 Page 5 of 11 application under consideration is a Conditional Use Permit. File No.: PLN-2023-174. Staff is recommending that this item be deemed Categorically Exempt under CEQA. Planning Commission action is final unless appealed in writing to the City Clerk within 10 calendar days. Project Planner: Nishant Seoni, Contract Associate Planner. Recommended Action: Adopt a Resolution (reference Attachment A), approval a Conditional Use Permit. Chair Zisser opened the Public Hearing for Agenda Item No. 2. Nishant Seoni, Associate Planner, provided the staff report. Chair Zisser asked for Commission questions for staff. Chair Zisser and Commissioners Fields and Krey had questions and Planner Seoni responded. Chair Zisser opened Public Comment. Roddy Diaz with Latin Asian Fusion, Applicant, made a presentation. Chair Zisser asked for Commission questions for the applicant. Chair Zisser and Commissioner Buchbinder had questions and Mr. Diaz responded. Chair Zisser asked for members of the public wishing to speak. There were no public comments. Chair Zisser closed Public Comment. Chair Zisser asked for Commission discussion. Commissioner Buchbinder said the applicant’s request seemed reasonable. Commissioner Krey said the project seemed fine to him. Vice Chair Kamkar agreed with his fellow commissioners. Commissioner Fields was very supportive of the project. Commissioner Majewski supported the project. Chair Zisser agreed with his fellow commissioners, saying this would be a minimal change and he supported the project. Motion: Upon motion by Vice Chair Kamkar the Planning Commission motioned to grant approval of a Conditional Use Permit to allow for beer and wine sales (liquor establishment) in association with an existing restaurant with a 5:00 AM operational opening (late night activities), community cooking classes, and Campbell Planning Commission Meeting Minutes – January 23, 2024 Page 6 of 11 private events on property located at 1402 Camden Avenue. File No.: PLN-2023- 174. Chair Zisser requested the motion be amended to 7:00 AM service start. The maker of the motion accepted the amendment to the motion. Seconded by Commissioner Buchbinder. By the following roll call: AYES: Fields, Majewski, Buchbinder, Krey, Kamkar, Zisser NOES: None ABSENT: Ostrowski ABSTAIN: None Chair Zisser closed the Public Hearing for Agenda Item No. 2. 4. PLN-2023-175 – Permissibility of Land Uses and Regulation of Business Public Hearing to consider amendments to Title 21 (Zoning) and Title 5 (Business Licenses and Regulations) of the Campbell Municipal Code related to the permissibility of land uses and regulation of businesses. File No.: PLN-2023-175. Staff is recommending that this project be deemed Categorically Exempt under CEQA. Tentative City Council Date: March 19, 2024. Project Planner: Stephen Rose, Senior Planner. Recommended Action: Make a motion to continue consideration of the subject item to the Planning Commission meeting of February 13, 2024. Chair Zisser opened the Public Hearing for Agenda Item No. 4. Motion: Upon motion by Commissioner Krey, seconded by Commissioner Fields, the Planning Commission motioned to continue the public hearing regarding Permissibility of Land Uses and Regulation of Business to a date certain of February 13, 2024. File No.: PLN-2023-175, by the following roll call: AYES: Fields, Majewski, Buchbinder, Krey, Kamkar, Zisser NOES: None ABSENT: Ostrowski ABSTAIN: None Chair Zisser closed the Public Hearing for Agenda Item No. 4. Campbell Planning Commission Meeting Minutes – January 23, 2024 Page 7 of 11 5. PLN-2023-155 – Zoning Map, Housing Overlay Districts, and Related Zoning Code Text Amendments Continued Public Hearing to consider the establishment of a new Zoning Map incorporating three new Housing Overlay Districts and adoption of related Zoning Code Text Amendments. File No.: PLN-2023-155. Staff is recommending that this project be found consistent with the Final Environmental Impact Report (EIR) (SCH: 2022030566) prepared for the 2040 General Plan and 2023-2031 Housing Element. Tentative City Council Date: February 6, 2024. Project Planner: Stephen Rose, Senior Planner. Recommended Action: Adopt a Resolution (reference Attachment A), recommending that the City Council adopt an Ordinance establishing a new Zoning Map, three new Housing Overlay Districts, and related Zoning Code Text Amendments. Chair Zisser opened the Public Hearing for Agenda Item No. 5. Senior Planner Rose presented the staff report to consider the establishment of a new Zoning Map incorporating three new Housing Overlay Districts and adoption of related Zoning Code Text Amendments. Commissioners were informed why there are no funds available for Campbell’s housing program, because the funds generated by old redevelopments that the program has lived off of has run out and the City has not collected new revenues into its affordable housing fund. The City is looking at new revenue sources: nexus fees, commercial linkage fees, in lieu fees, and grants. Commissioners inquired why the City is offering the three levels of very-low, low, and moderate income, and were informed the City’s RHNA touches on each of these income categories, and the City needs more of all three and does not have a great track record of hitting any of them. The Commission was informed it does not have the ability to exempt BMR projects from CEQA, and that the affordable housing overlay requires either administrative or ministerial permit, depending on CEQA. Staff clarified that the overlay zone could not be extended to cover the entire 5-19% range, because it is an incentive specifically targeting the allowable density of the project, so they would already qualify under State density bonus law without that incentive being offered. The Commission was informed with respect to whether the incentives the City is offering might result in more affordable housing that the incentive affordable housing developers indicate is of paramount importance is some type of financial incentive like reduction in park in lieu fees, which helps them score higher when they apply for other outside agency funding, which is difficult for them to do without some type of match. The Commission inquired as to whether the City is making special efforts for very-low-income housing as opposed to low-income or moderate, and were informed the City extended the Campbell Planning Commission Meeting Minutes – January 23, 2024 Page 8 of 11 programs to include very-low income, and the general approach was extending State bonus density law across all three categories. The program is geared more towards supporting very-low- income units than the other two categories. Planner Rose explained the difference between administrative and ministerial on permits. The administrative decision process is decided on by the community development director, is publicly noticed, has a report, a decision is rendered, and it is appealable. The ministerial process is if all the objective requirements are met a project is effectively approved, with no public notice, and it is a financial plus for a developer to be able to do ministerial versus administrative, because it offers significant time and cost savings. Staff reviewed the Campbell Affordable Homeownership sales prices for studios through 4 bedrooms in the three income categories as of 9/26/23; the pricing varies by rental vs. ownership and by income limits. Planner Rose clarified a previous comment by saying the City’s Affordable Housing Overlay, the ordinance itself, does cover all three categories of affordability: very-low-, low-, and moderate- income, and the actual table from the ordinance is far more encompassing. The Commission inquired what a developer gets from the new three-year permit approval period, and was informed that it is offers them a longer time period to go through the process, giving developers greater assurance that their time and energy spent titling the project won’t be subject to the new State laws or local changes that could affect their project. Chair Zisser suggested the First Street Parking Garage, a City-owned property, should still be considered for affordable housing. The garage has legal implications, but the City should work hard to overcome them, because a few levels of the garage could be turned into residential. He suggested the Commission put into its resolution that it recommends looking further into the First Street Parking Garage property being considered under the City-owned property part of affordable housing. Vice Chair Kamkar discussed reusing a structure like the parking garage for housing and the need to rebuild the foundation because is not designed for the additional weight of the housing. He also discussed the City Council’s reason for removing the garage from the consideration list. Staff clarified that the City may be unlikely to see the development of 100% affordable projects at all without a reduction of park in lieu fees, which could be seen as a net positive, because the City would actually see park fees they otherwise wouldn’t have with such a project. Chair Zisser open Public Comment. Chair Zisser asked for members of the public wishing to speak. Jacob Billitteri with Charities Housing, an affordable housing developer working on a 100% affordable project in Campbell in collaboration with the Santa Clara Methodist Retirement Foundation, supported staff’s recommendations as a good step in addressing issues created by Campbell Planning Commission Meeting Minutes – January 23, 2024 Page 9 of 11 Campbell’s lack of public funds, particularly the park in lieu fee reductions that would be helpful to them when applying for State funding or for tax credits to finance 100% affordable deals, and it reduces total development costs. They also supported the extended permit approval period as well as staff’s recommendations regarding cost reduction measures, such as modular construction. He confirmed unit mixes would be approximately 100 units and they would focus on 30% area median income to 50% area median income, so it would be an ELI/VLI development. They could be able to get financing if they can reduce their total development costs, and they would do that by using modular construction. Chair Zisser closed Public Comment. Chair Zisser asked for Commission discussion. Commissioner Fields appreciated learning about the three levels of housing and why they are going after all three. He felt slight trepidation at the new proposal to allow 100% affordable with nothing but adjacency for fear of eyesores popping up, but was very supportive of the first three of staff’s recommendations being passed on to City Council. Commissioner Majewski said she had the same questions about the lack of design review, but believed the City needs this more streamlined process to attract affordable housing projects. Commissioner Buckbinder was not terribly concerned regarding reducing the design standards, saying if they end up with a huge, blocky looking affordable housing tower with 500 affordable units, he would not be concerned. He would have liked to have seen the Commission boosting the existing density bonus program by making those approvals by right, but he understood it is difficult to do that without competing with the State density bonus program, and he was glad there is a way they can lower the bar for getting ministerial or administrative approval. Commissioner Krey was also in favor of staff’s proposal, saying Campbell would be better for it. He said it is always a tradeoff, and they don’t want to throw design completely out the window, but he knew they were being especially careful with the adjacency. He noted that the City Council was against utilizing the City-owned First Street Parking Garage for affordable housing, but said if the trends are holding and the need for affordable housing keeps growing, it would have to come back for consideration. Vice Chair Kamkar said it is extremely difficult to build affordable housing, mostly because it doesn’t pencil out. He admired the Chair’s insistence on having more sites available, but said there are other ways to do it. He said very low-income is the most difficult to build because of the financials involved, followed by low-income and moderate-income. He supported the proposal and did not think it goes far enough. Chair Zisser said staff had put together a viable plan that he supported. He was less concerned about the adjacency, but hoped the locations selected for the 100% affordable housing would take into consideration the effect of adjacencies. He supported affordability, but said it is difficult because most 100% affordable housing is built by non-profits, and there are not a lot of them, so Campbell Planning Commission Meeting Minutes – January 23, 2024 Page 10 of 11 he was glad to hear Charities Housing was building in Campbell, because Campbell would be hard pressed to hit its RHNA numbers as it is. Staff explained the City’s in lieu fee program and that it only applies to very-low to low-density residential projects. Commissioner Krey had a negative bias to the in lieu fees, because developers use them to get away from building the units. He said it was good they were putting off the in lieu fee, and said the fees should not be too low, like they are almost everywhere else, and should be used hesitantly. Vice Chair Kamkar suggested they could use the in lieu fee as the City’s matching, so they could use this matching fund against State and federal funds. Motion: Upon motion by Commissioner Krey the Planning Commission recommended City Council adoption of an ordinance establishing a new Zoning Map incorporating three new Housing Overlay Zoning Districts and adoption of related Zoning Code Text Amendments. File No.: PLN-2023-155. Planner Rose clarified whether or not the Planning Commission was supportive of the addition of allowing for 100% affordable projects to be alleviated from development requirements except the adjacency specified design standards indicated and said it must be made clear if this is to be added to the motion. The maker of the motion amended the motion to include the addition Planner Rose outlined. The motion was seconded by Vice Chair Kamkar. By the following roll call: AYES: Fields, Majewski, Buchbinder, Krey, Kamkar, Zisser NOES: None ABSENT: Ostrowski ABSTAIN: None Chair Zisser closed the Public Hearing for Agenda Item No. 5. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR Director Eastwood reported that: • The City Council held a special meeting on 1/22/24. o Reviewed and approved the six-lot subdivision on Sunnyside Avenue that had come before the Planning Commission. o Reviewed a proposed duplex on Kennedy Avenue and gave direction for modification to the right the right-of-way and improvements to the sidewalk. Campbell Planning Commission Meeting Minutes – January 23, 2024 Page 11 of 11 Council continued the hearing for staff to modify the conditions, but generally was supportive of the item. • Campbell is now recruiting for a plan check examiner to review incoming building permits. Director Eastwood confirmed that building permit applications have increased over the past couple of years. Chair Zisser discussed subcommittees, saying the subcommittee on parking has been put on the back burner until the new work plan in June 2024, and he agreed with staff that subcommittees should be tied to a work plan, so they need to wait for the new work plan. He hoped they could do something in the area of affordable housing to support staff in terms of research in that area. ADJOURNMENT Adjourned meeting at 10:07 p.m. to the next Regular Planning Commission Meeting on Tuesday, February 13, 2024, in the City Hall Council Chambers, 70 North First Street, Campbell, California and via telecommunication. PREPARED BY: _______________________________ Ken Ramirez, Administrative Analyst APPROVED: ______________________________ Alan Zisser, Chair ATTEST: ________________________________ Rob Eastwood, Secretary Alan Zisser (Feb 21, 2024 15:58 PST) 1-23-24 PC meeting minutes Final Audit Report 2024-02-21 Created:2024-02-20 By:Ken Ramirez (kenr@campbellca.gov) Status:Signed Transaction ID:CBJCHBCAABAAGuA3V6_am7_0XsySKPi5RqTtfiaAwtKZ "1-23-24 PC meeting minutes" History Document created by Ken Ramirez (kenr@campbellca.gov) 2024-02-20 - 6:16:29 PM GMT Document emailed to Ken Ramirez (kenr@campbellca.gov) for signature 2024-02-20 - 6:16:33 PM GMT Document emailed to Rob Eastwood (robe@campbellca.gov) for signature 2024-02-20 - 6:16:34 PM GMT Document emailed to Alan Zisser (alanzisser@gmail.com) for signature 2024-02-20 - 6:16:34 PM GMT Email viewed by Ken Ramirez (kenr@campbellca.gov) 2024-02-20 - 6:19:01 PM GMT Document e-signed by Ken Ramirez (kenr@campbellca.gov) Signature Date: 2024-02-20 - 6:19:09 PM GMT - Time Source: server Email viewed by Rob Eastwood (robe@campbellca.gov) 2024-02-20 - 11:58:40 PM GMT Document e-signed by Rob Eastwood (robe@campbellca.gov) Signature Date: 2024-02-20 - 11:58:50 PM GMT - Time Source: server Email viewed by Alan Zisser (alanzisser@gmail.com) 2024-02-21 - 11:57:39 PM GMT Document e-signed by Alan Zisser (alanzisser@gmail.com) Signature Date: 2024-02-21 - 11:58:05 PM GMT - Time Source: server Agreement completed. 2024-02-21 - 11:58:05 PM GMT