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HomeMy WebLinkAboutPC Res 2025-15RESOLUTION NO. 2025-15 BEING A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CAMPBELL APPROVING THE CONTINUED OPERATION OF A ± 54,583 SQUARE-FOOT FITNESS CENTER/STUDIO (PICKLEBALL FACILITY, DBA “THE HUB”) AND APPROVING A FIVE-YEAR TERM-LIMITED ±26,646 SQUARE-FOOT EXPANSION WITHIN AN EXISTING COMMERCIAL BUILDING, INCLUSIVE OF NINE (9) ADDITIONAL INDOOR PICKLEBALL COURTS. THE EXPANSION WOULD RESULT IN A TOTAL FACILITY AREA OF ±81,229 SQUARE FEET AND 29 COURTS, ON PROPERTY LOCATED AT 600 E. HAMILTON AVENUE. FILE NO.: PLN- 2024-157 After notification and public hearing, as specified by law and after presentation by the Community Development Director, proponents and opponents, the hearing was closed. After due consideration of all evidence presented, the Planning Commission did find as follows with respect to application PLN-2024-157: 1. The project site is zoned TO-MU (Transit-Oriented Mixed-Use) on the City of Campbell Zoning Map. 2. The project site is designated Transit-Oriented Mixed-Use (57-75 Units/Gr. Acre) on the City of Campbell General Plan Land Use diagram. 3. The project site is a 7.10-acre parcel located along the southeast corner of Hamilton Avenue and Salmar Avenue within the proposed Hamilton Avenue Precise Plan boundary developed with a commercial building totaling approximately 156,573 square feet. 4. Developed in 1971 for department store and warehouse use, the property has supported various retail, industrial, and recreational uses over time. From 1992 to 2020, Fry’s Electronics operated a retail and warehouse facility on the site. 5. In 2023, an Administrative Planned Development Permit (PLN-2023-39) was approved to convert warehouse space, formerly occupied by Argonaut Windows and Fry’s Electronics. 6. In 2023, an Administrative Planned Development Permit (PLN-2023-39) was approved to convert warehouse space, formerly occupied by Argonaut Windows and Fry’s Electronics, into a fitness center/studio use now operating as “The Hub.” 7. The Project Site was recognized as a Housing Opportunity Site in the City’s 2023 General Plan and Housing Element Update, and in 2023, the site’s zoning was changed from Planned Development (P-D) to Transit-Oriented Mixed-Use (TO-MU), and the General Plan land use designation was updated from General Commercial to Transit-Oriented Mixed-Use (57-75 Units/Gr. Acre). Planning Commission Resolution No. 2025-12 Page 2 of 5 PLN-2024-157 ~ 600 E. Hamilton Avenue 8. With the adoption of the City’s new General Plan and revised Zoning Code, effective June 2, 2023, the Planned Development (P-D) Zoning District has been designated as a “legacy zone” pursuant to Section 21.04.070 (Legacy Zones). As a legacy zone, the P-D district continues to govern properties to which it previously applied but is no longer available for application to new properties. The existing rules and regulations of the P-D district remain in effect for the subject property. However, because the City no longer offers a process to amend existing P-D permits and considers all such permits to be legacy entitlements, any modifications to the use or development standards must now be processed through a Conditional Use Permit Admin P-D 9. In order to pursue the proposed expansion, the applicant was required to obtain a Conditional Use Permit (CUP), which serves to supersede the existing Administrative Planned Development (Admin P-D) approval and authorize the expanded use in accordance with current zoning regulations. 10. Following the July 22, 2025 public hearing, the Planning Commission expressed support for allowing the continued operation of the existing ±54,583 square‑foot fitness center/studio (pickleball facility, dba “The Hub”) in perpetuity, consistent with the prior 2023 Planned Development approval, and for allowing the proposed ±26,646 square‑foot expansion with nine additional courts for a limited term of five (5) years. The approved plans distinguish between the portion intended for ongoing operation and the portion intended for term‑limited expansion. 11. The Conditional Use Permit establishes two distinct components of the approved use: a. The continued operation of the existing ±54,583 square-foot fitness center/studio containing 20 indoor courts, which was initially authorized under Administrative Planned Development Permit PLN-2023-39 and is hereby approved in perpetuity, subject to the Conditions of Approval; and b. A ±26,646 square-foot expansion comprising nine indoor courts, which is conditionally approved for a term of five (5) years from the date of final inspection or certificate of occupancy, whichever occurs first. 12. The pickleball fitness facility use meets the definitions for both "health/fitness centers" and "studios, large" per CMC Section 21.72. 13. Permitted land uses in mixed-use districts are specified in Table 2-8 (Land Use Table – Mixed-Use Districts), which allows uses consistent with either the General Commercial (GC) and/or High Density Residential (HDR) zoning districts in the TO- MU zoning district. As this project does not include a residential component, it is subject to the land use standards of the GC zoning district. 14. Although fitness centers exceeding 10,000 square feet are not specifically listed in Table 2-5 (Land Use Table — Commercial, Office, and Industrial Zoning Districts), the Community Development Director has determined that the proposed use is allowable with a Conditional Use Permit pursuant to CMC Section 21.02.030.F (Allowed Uses of Land), which authorizes consideration of similar uses not expressly identified in the Zoning Code. Planning Commission Resolution No. 2025-12 Page 3 of 5 PLN-2024-157 ~ 600 E. Hamilton Avenue 15. The expansion would occupy a portion of the currently vacant retail space within the existing building, which has generally remained unoccupied since the closure of Fry’s Electronics with the allowance of short-term seasonal retail uses. The proposal involves no exterior construction beyond minor site improvements and is fully contained within the existing structure. 16. Approval of the Conditional Use Permit for the underlying use facilitates expansion into the adjacent vacant retail building, enabling short-term activation and economic revitalization of an underutilized commercial site. This action is consistent with the following General Plan policy: • Policy ED-2.5: Encourage the retention and expansion of local businesses to provide a range of jobs and services, retain revenue, and respond to community needs for key amenities 17. The proposed use permit and term-limited expansion is consistent with the General Plan’s Transit-Oriented Mixed-Use designation, which encourages a mix of residential and commercial uses near transit. While residential redevelopment is preferred in the long term, interim activation is not precluded. The proposal supports the following General Plan goals and policies: • Policy LU-1.1: Provide for a broad range of land uses within the city that are conveniently located in proximity to transit opportunities, and provide for commercial, public, and quasi-public uses that support and enhance the livability of residential neighborhoods and districts. • Policy ED-2.4: Encourage revitalization of underutilized commercial sites to support the City’s broader economic development goals. 18. The proposed use permit and interim expansion responds to current economic conditions that constrain high-density housing development, including high construction costs, limited financing, and soft rental markets. These barriers are well- documented in the City’s 2024 Affordable Housing Nexus Study and were further discussed during the Planning Commission’s May 27, 2025, Housing Study Session. 19. The proposed limited-term expansion aligns with General Plan policies that promote the revitalization of underutilized commercial properties supporting community- serving amenities in the short term and preserving the long-term redevelopment potential of a key gateway site. • Policy LU-4.6: Strongly encourage rehabilitation and redevelopment of existing shopping centers at those locations where a dominant retail use is still likely to be viable. Encourage conversion to non-retail uses at those locations with obsolete retail space, limited opportunity for future viable retail uses, or both 20. The proposal avoids permanent alterations and significant site investment, preserving the physical and regulatory flexibility needed to facilitate future high-density, transit- oriented housing or mixed-use redevelopment consistent with the site’s General Plan designation. Planning Commission Resolution No. 2025-12 Page 4 of 5 PLN-2024-157 ~ 600 E. Hamilton Avenue 21. The project site is physically adequate to accommodate the proposed use, with established infrastructure and over 400 existing parking spaces. Due to its proximity (within 0.5 miles) to the Hamilton Light Rail Station, the site is exempt from minimum parking requirements. No changes are proposed to building setbacks, fencing, or exterior configuration. 22. The City’s Traffic Engineer has determined that the change in use from retail to a recreational fitness facility will result in a net reduction in vehicle trips. The project has been conditioned to install a speed hump on the northerly driveway to address potential site ingress/egress impacts. 23. The Planning Commission's review of the project further encompassed zoning and General Plan land use conformance, noise impacts, parking, property maintenance, odors, security and enforcement, and neighborhood impacts. 24. There is a reasonable relationship and a rough proportionality between the Conditions of Approval and the impacts of the project. 25. No substantial evidence has been presented which shows that the project, as currently presented and subject to the required conditions of approval, will have a significant adverse impact on the environment. Based upon the foregoing findings of fact, the Planning Commission further finds and concludes that: Conditional Use Permit Findings (CMC Sec. 21.46.040): 1. The proposed use is allowed within the applicable zoning district with Conditional Use Permit approval, and complies with all other applicable provisions of this Zoning Code and the Campbell Municipal Code; 2. The proposed use is consistent with the General Plan; 3. The proposed site is adequate in terms of size and shape to accommodate the fences and walls, landscaping, parking and loading facilities, yards, and other development features required in order to integrate the use with uses in the surrounding area; 4. The proposed site is adequately served by streets of sufficient capacity to carry the kind and quantity of traffic the use would be expected to generate; 5. The design, location, size, and operating characteristics of the proposed use are compatible with the existing and future land uses on-site and in the vicinity of the subject property; 6. The establishment, maintenance, or operation of the proposed use at the location proposed will not be detrimental to the comfort, health, morals, peace, safety, or general welfare of persons residing or working in the neighborhood of the proposed use, or be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the city; and Planning Commission Resolution No. 2025-12 Page 5 of 5 PLN-2024-157 ~ 600 E. Hamilton Avenue Environmental Finding(s) (CMC Sec. 21.38.050): 1.This project is Categorically Exempt per Section 15301, Class 1 of the California Environmental Quality Act (CEQA) pertaining to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of an existing private structure. 2.No substantial evidence has been presented which shows that the project, as currently presented and subject to the required conditions of approval, will have a significant adverse impact on the environment. THEREFORE, BE IT RESOLVED that the Planning Commission approves the continued operation of a fitness center/studio (pickleball facility, dba “The Hub”) and approves a five- year term-limited ±26,646 square-foot expansion within an existing commercial building, inclusive of nine (9) additional indoor pickleball courts. The expansion would result in a total facility area of ±81,229 square feet and 29 courts, on property located at 600 E. Hamilton Avenue subject to the attached Conditions of Approval (attached Exhibit A/B). PASSED AND ADOPTED this 12th day of August 2025, by the following roll call vote: AYES: Commissioners: Kamkar, Fields, Ostrowski, Zisser, Buchbinder NOES: Commissioners: ABSENT: Commissioners: Krey, Majewski ABSTAIN: Commissioners: APPROVED: Matt Kamkar, Chair ATTEST: Rob Eastwood, Secretary Matt Kamkar (Aug 21, 2025 12:04:07 PDT) Exhibit A Conditions of Approval Page 1 of 5 PLN-2024-157 ~ 600 E. Hamilton Avenue CONDITIONS OF APPROVAL Conditional Use Permit (PLN-2024-157) Where approval by the Director of Community Development, City Engineer, Public Works Director, City Attorney or Fire Department is required, that review shall be for compliance with all applicable conditions of approval, adopted policies and guidelines, ordinances, laws and regulations and accepted engineering practices for the item under review. Additionally, the applicant is hereby notified that he/she is required to comply with all applicable Codes or Ordinances of the City of Campbell and the State of California that pertain to this development and are not herein specified. COMMUNITY DEVELOPMENT DEPARTMENT Planning Division 1. Approved Project: Approval is granted for a Conditional Use Permit that establishes two distinct components of the approved use: a. Continued Operation: Approval is granted for the ongoing operation of the existing ±54,583 square‑foot fitness center/studio (pickleball facility, dba “The Hub”) containing 20 indoor courts, originally authorized under Administrative Planned Development Permit PLN‑2023‑39, which is hereby approved in perpetuity, subject to the Conditions of Approval. b. Term-Limited Expansion: Approval is granted for a ±26,646 square-foot expansion within the existing commercial building, comprising nine (9) additional indoor pickleball courts, resulting in a total facility area of ±81,229 square feet and 29 courts identified as “Phase II” on the Approved Project Plans. This expansion is conditionally approved for a term of five (5) years from the date of final inspection or certificate of occupancy, whichever occurs first. The project shall substantially conform to the Project Plans and Project Description included as Attachments B and C in the August 12, 2025, Planning Commission Staff Report, except as modified by the Conditions of Approval herein. 2. Permit Expiration: Approval of the Conditional Use Permit ("Approval") shall be valid for one (1) year from the effective date of the Planning Commission action. Within this one- year period, a building permit must be issued to "establish" the Approval pursuant to CMC Sec.21.56.030.B.1 (Issuance of Building Permit). Failure to meet this deadline will result in the Approval being rendered void. Once established, this Approval shall be valid in perpetuity on the Project Site, except the ±26,646 square-foot expansion shall be valid for the period specified in Condition of Approval No. 3 (Limited Term Approval), and unless revoked in accordance with Condition of Approval No. 9 (Modification or Revocation of Permit). 3. Limited-Term Approval: Use of the ±26,646 square-foot expansion is limited to five (5) years from the date of final inspection or certificate of occupancy, whichever occurs first. Upon expiration, the expansion shall be vacated and the use discontinued unless a new or modified Conditional Use Permit is approved. Exhibit A Conditions of Approval Page 2 of 5 PLN-2024-157 ~ 600 E. Hamilton Avenue Within thirty (30) days of the effective date of this Approval, or prior to building permit issuance (whichever comes first), the property owner shall record an agreement, in a form approved by the City Attorney, acknowledging the limited-term nature of this approval and that no vested right exists beyond the authorized term. The agreement shall run with the land and bind all successors in interest. 4. Building Permit Valuation: The total valuation of all tenant improvement work associated with the limited-term expansion of the existing pickleball facility authorized by this Approval shall not exceed $200,000, as determined by the Building Official. If the valuation exceeds this amount, the building permit shall not be issued and this Approval shall be rendered void, unless the scope of the expansion is revised to reduce the valuation below $200,000, as determined by the Community Development Director. 5. Previous Conditions of Approval: Upon the effective date of this Approval, the previously approved Conditions of Approval provided in Administrative Planned Development Permit (PLN-2023-39) shall be void and shall permanently be superseded in their entirety by the Conditions of Approval specified herein, except as noted by Condition of Approval No. 2 (Approval Expiration). 6. Operational Standards: Consistent with the submitted Project Description and City standards, the fitness center/studio use, including both the underlying use and the expansion area, pursuant to this Approval shall conform to the following operational standards. Significant deviations from these standards (as determined by the Community Development Director) shall require approval of a Modification to the Conditional Use Permit. a. Approved Use: The approved use is a "health and fitness center"/"studio, large" as defined by the Campbell Municipal Code, specifically restricted to pickleball activity, and limited by the operational standards listed herein. b. Courts: The approved health and fitness center/studio is limited to a maximum of twenty (20) pickleball courts, or twenty-nine (29) courts when including the term-limited expansion area. c. Business License: The business shall be required to obtain and maintain a City business license at all times. d. Maximum Occupancy: The maximum occupancy of the establishment shall be as determined by the California Building Code (CBC). It is the responsibility of the business owner to provide adequate entrance controls to ensure that staff occupancy is not exceeded. Maximum Occupancy signs shall be posted conspicuously within the premises; including a sign indicating the maximum number of staff permitted for the use at any time. e. Hours of Operation: Hours of operation shall be limited to 6:00 AM until 11:00 PM daily, inclusive of customer and employee activity. f. Fencing: The existing six-foot-high fence shall be maintained along the east property line adjacent to Highway 17. g. Membership: Patrons are required to demonstrate membership of the facilities in order to access the facilities. Term limited passes such as a single- day pass may be issued to guests for trial periods and events. Exhibit A Conditions of Approval Page 3 of 5 PLN-2024-157 ~ 600 E. Hamilton Avenue h. Landscape Maintenance: All landscaped areas shall be continuously maintained in accordance with CMC Chapter 21.26. Landscaped areas shall be kept free of weeds, trash, and litter. Dead or unhealthy plants shall be replaced with healthy plants of the same or similar type. i. Smoking: "No Smoking" signs shall be posted on the premises in compliance with CMC 6.11.060. j. Loitering: There shall be no loitering allowed outside the business. The business owner is responsible for monitoring the premises to prevent loitering. k. Food and Beverage Sale: Ancillary retail sales for prepackaged drinks and snack food are allowed in association with the health and fitness center/studio use. All food and beverage products shall qualify for either a permit exemption or a plan check exemption under Santa Clara County Department of Environmental Health (DEH) rules for prepackaged non-potentially hazardous food, consistent with Section 114289 of the California Retail Food Code. Any third-party food vendors shall obtain and maintain a City Business Licenses. l. Alcoholic Beverages: No alcoholic beverage service shall be permitted within the health and fitness center/studio use, except as may be allowed in conjunction with a temporary use defined under CMC Chapter 21.36 (Temporary Uses) and subject to all required permits for such use. m. Retail Sales: Ancillary retail sales are allowed in conjunction with the primary health and fitness center/studio use. The retail merchandise display area shall be kept well organized, and all items for sale shall be related to the proposed use. Only vendors maintaining approved City Business Licenses l may be allowed to offer retail sales. All retail sales shall be confined within the retail area as depicted on the corresponding Building Permit. n. No Massage or Medical Uses: No activity constituting massage therapy as defined by the CMC Section 21.72.020 shall be allowed to occur on site. Individuals with a certificate or license in massage therapy, physical therapy, or any other medical license shall not provide services on site. o. Trash Disposal and Clean-Up: All trash disposal, normal clean-up, carpet cleaning, window cleaning, sidewalk sweeping, etc. shall occur during the "Hours of Operation." The establishment of shall maintain a sufficient number of trash receptacles as necessary to accommodate customer waste, which shall be emptied daily or more frequently as necessary to prevent refuse from overflowing. p. Noise: Unreasonable levels of noises, sounds and/or voices, including but not limited to amplified sounds from radio and loud speakers, shall not be audible to a person of normal hearing acuity from any residential property. In the event verified complaints are received by the City regarding such noise, the Community Development Director may immediately curtail the Hours of Operation and/or commence revocation proceedings pursuant to Condition of Approval No. 10 (Modification or Revocation of Permit). The following restrictions shall also be adhered to limit potential noise impacts: Exhibit A Conditions of Approval Page 4 of 5 PLN-2024-157 ~ 600 E. Hamilton Avenue i. Doors shall remain closed at all times and will not be propped open to contain interior noise. ii. Deliveries shall be restricted to between the hours of 8:00am and 8:00pm iii. Speakers shall be directed away from doors and windows. q. Live entertainment: Live entertainment is not allowed, this includes disc jockeys, bands, or music acts. r. Outdoor Activity: No outdoor activity related to the health and fitness center/studio use is allowed at any time, including outdoor training sessions, outdoor distance running, advertising/tabling, or any other events. s. Outdoor Storage: No outdoor storage is permitted on the subject property. No equipment, materials, food and/or refuse stored outside the building or within the adjacent parking lot area. t. Outdoor Display: No outdoor display of merchandise is allowed on the subject property. u. Tournaments: Events directly related to the proposed use (pickleball) shall be limited to four (4) event periods per calendar year spanning three (3) consecutive days. The four (4) event periods may not be used consecutively. Occupancy limitations for tournaments shall be determined based on the California Building Code (CBC) and shall not exceed 160 people, including staff, within the underlying facility, or 237 people, including staff, when including the term-limited expansion area. Any event or activity that exceeds the frequency or occupancy limits described above may be permitted only upon approval of a Temporary Use Permit in accordance with CMC Chapter 21.45 (Temporary Uses). v. Parking and Driveways: All parking and driveway areas shall be maintained in compliance with the standards provided in CMC Chapter 21.28 (Parking and Loading). No outside practice or activity shall be held which obstructs any parking stalls or drive aisles. 7. Property Maintenance: The owner/operator of the subject property shall maintain all exterior areas of the business free from graffiti, trash, rubbish, posters and stickers placed on the property. Exterior areas of the business shall include not only the parking lot and private landscape areas but also include the public right-of-way adjacent to the business. 8. Signage: No signage is approved as part of the development application approved herein. New signage shall not be installed prior to approval of a sign permit. 9. Modification or Revocation of Permit: Operation of a health and fitness center/studio use pursuant to this Approval is subject to Chapter 21.46 of the Campbell Municipal Code authorizing the appropriate decision making body to modify or revoke a Conditional Use Permit if it is determined that its operation has become a nuisance to the City’s public health, safety or welfare or for violation of the Conditional Use Permit or any standards, codes, or ordinances of the City of Campbell. At the discretion of the Community Development Director, if the establishment generates three (3) verifiable complaints related to violations of conditions of approval and/or related to its operation Exhibit A Conditions of Approval Page 5 of 5 PLN-2024-157 ~ 600 E. Hamilton Avenue within a twelve (12) month period, a public hearing may be scheduled to consider modifying conditions of approval or revoking the Conditional Use Permit. The Community Development Director may commence proceedings for the revocation or modification of permits upon the occurrence of less than three (3) complaints if the Community Development Director determines that the alleged violation warrants such an action. The Director may also at such time immediately restrict the establishment's hours of operation. In exercising this authority, the decision-making body may consider the following factors, among others: a. The number and types of Police Department calls for service at or near the establishment that are reasonably determined to be a direct result of customer and/or employee actions; b. The number of complaints received from residents, business owners and other citizens concerning the operation of an establishment regarding, noise, and/or other operational impacts; c. The tournament events result in adverse impacts to public health, safety, or welfare due to increased noise, traffic congestion, parking overflow, or other disruptions to the surrounding neighborhood; and d. Violation of conditions of approval. Building Division 10. Permit Required: Building permit application shall be required for building remodel. 11. Conditions of Approval: The Conditions of Approval shall be stated in full on the cover sheet of construction plans submitted for building permits. PUBLIC WORKS DEPARTMENT Traffic Division 12. Speed Bump: Install a highly visible speed bump across the second exit driveway south of Hamilton Avenue to encourage safer entry onto Salmar Avenue. 13. Landscaping: Maintain vegetation to the south of the second exit driveway south of Hamilton Avenue. Specifically, vegetation should not be allowed to grow higher than 3.5 feet above the ground within 40 feet of the southern edge of this driveway. SANTA CLARA COUNTY FIRE DISTRICT 14. Tenant Improvement Review: Note that a plan review is required prior to any proposed tenant improvement. Tenant improvements shall be evaluated at building permit submittal. 15. Fire Alarm Review: Sprinkler and fire alarm modification shall be required and reviewed at building permit submittal. PC Reso No. 2025-15 ~ 600 E Hamilton Ave Final Audit Report 2025-08-21 Created:2025-08-21 By:Ken Ramirez (kenr@campbellca.gov) Status:Signed Transaction ID:CBJCHBCAABAADbijquirqJQVtoV_848OE6MzOHYVhNlV "PC Reso No. 2025-15 ~ 600 E Hamilton Ave" History Document created by Ken Ramirez (kenr@campbellca.gov) 2025-08-21 - 4:46:55 PM GMT Document emailed to Rob Eastwood (robe@campbellca.gov) for signature 2025-08-21 - 4:47:00 PM GMT Document emailed to Matt Kamkar (mkamkar7@gmail.com) for signature 2025-08-21 - 4:47:00 PM GMT Email viewed by Rob Eastwood (robe@campbellca.gov) 2025-08-21 - 4:56:18 PM GMT Document e-signed by Rob Eastwood (robe@campbellca.gov) Signature Date: 2025-08-21 - 4:56:29 PM GMT - Time Source: server Email viewed by Matt Kamkar (mkamkar7@gmail.com) 2025-08-21 - 7:02:27 PM GMT Document e-signed by Matt Kamkar (mkamkar7@gmail.com) Signature Date: 2025-08-21 - 7:04:07 PM GMT - Time Source: server Agreement completed. 2025-08-21 - 7:04:07 PM GMT