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General Plan Amendment - 2004August 23, 2004 Mr. James Chalmers 700 McGincy Lane Campbell, CA 95008 Re: File No. PLN 2004-41-700 -750 McGlincy Lane General Plan Amendment Dear Mr. Chalmers, Please accept this letter as a follow-up to the City Council Study Session of July 20, 2004 and in response to your recent inquiries regarding a refund of your application fee. Under section 21.60.020 of the Campbell Municipal Code, the City Council is the only body that may initiate a General Plan amendment. The Study Session process allows the City Council an opportunity to authorize an applicant to proceed with a General Plan Amendment application. Based upon the comments made by a majority of the City Council members present at the Study Session, the City Council was not supportive of an action for you to proceed with the General Plan Amendment application from Industrial to Low-Medium Density Residential for your properties along McGLincy Lane. Consequently, the request was denied. Staff has requested that the Finance Department refund your application and deposit fee of $7500.00. We will advise you when the refund check is available. Additionally, City Council members requested that staff work with you regarding other development options and uses for your property that would be consistent with the current Industrial land use designation. If you wish to discuss development options, please do not hesitate to contact the Planning Division. Please do not hesitate to contact me at (408) 866-2144 or by email attimh@citvofcamobell.com , if you have any questions regarding this determination or would like to discuss this matter. Associate Planner cc: Sharon Fierro, Community Development Director Bernard Strojny, City Manager Bill Hagman, The Hagman Group, Inc., 1990 The Alameda, San Jose, CA 95126 70 North First Street Campbell, California 95008-1436 ' TEL 408,866,2140 . FAX 408,871.5140 ' TOD 408,866,2790 To: Mayor and Members of the City Council Bernard M. Strojny, City Manager ,w Sharon Fierro, Community Development Director ~ Date: July 20, 2004 From: Subject: 700- 750 McGlincy Lane - Instant Storage and Bay Area Recycling Site - STUDY SESSION The purpose of the City Council study session on this item is to receive feedback for staff and the applicant from the City Council. The project would require an amendment to the Land Use Element of the General Plan from Industrial to Low-Medium Density Residential. RACKGROITND The project site comprises three parcels encompassing 5.1 gross acres. The site is located on the south side of McGlincy Lane and is currently occupied by two businesses. Instant Storage Services, a cargo container business, reconditions, sales and rents cargo containers. The second business, Bay Area Recycling collects and purchases various metals, newspapers and glass. The property owner and applicant would like to redevelop the site with residential uses and consequently is pursuing a change in the General Plan. The applicant has provided a conceptual site development plan proposing a small lot single- family residential development with 64 two story residences. The City Council approved the General Plan Update in November 2001. In its review of the project site and this neighborhood, the City Council reviewed the issue of changing the current Industrial Land Use designation to Research and Development for properties on the south side of McGlincy Lane. Property owners in this area petitioned the City Council to retain the Light Industrial designation. As a result, the City Council voted to leave the designation unchanged. The General Plan includes goals, policies and strategies to protect the industrial uses of the community and to minimize the interface between industrial and residential uses. r- Council Study Session - July 20, 2004 700-750 McGlincy Lane - Instant Storage and Bay Area Recycling Site Page 2 Previous Plannin~ A pplieations In 2001, The Planning Commission approved (Resolution No. 3340) a Site and Architectural Review to allow the construction of two new 40,000 square foot research and development buildings. Subsequent to the Planning Commission approval, the City Council considered an appeal and adopted Resolution No. 9874 denying the appeal and upholding the Planning Commission action. This approval expired in June 2002 and was subsequently extended by the Planning Commission to June 25, 2004. Due to market conditions and limited demand for research and development space, the property owner has not pursued the development of this property with the two research and development buildings. SnITonnciine T r~e~' The area is developed predominately with industrial uses, with some nearby residential uses to the south and east: North: Industrial (Metal Fabrication, Auto Body shop, Cabinet Manufacturing) Low Density Residential (Single-family residences) Low-Medium Density Residential (Townhomes & Industrial Buildings-Becks Shoes & VBS Industries) Industrial (West Valley Construction) South: East: West: The applicant proposes to redevelop the property with 64 two-story residences at a density of 12.4 units per gross acre. This proposal would require a General Plan Amendment to Low- Medium Density Residential, a Zone Change from M-I-S (Light Industrial) to P-D (Planned Development) to allow small lot single family homes, a Planned Development Permit for a specific development plan and a Tentative Subdivision Map. The project would require Planning Commission review and City Council approval at public hearings. DISCUSSION The applicant proposal of 64 residential units on the 5.1 gross acre site yields a density of 12.4 dwelling units per gross acre. The proposed General Plan Amendment is not consistent with a number of the General Plan policies for the area, including the following: Council Study Session - July 20, 2004 700-750 McGlincy Lane - Instant Storage and Bay Area Recycling Site Page 3 Safeguarding Industrial Uses: Policy LUT-5.4: Tnc1mtri~l NeieJ1horhooc1s: Safeguard industry's ability to operate effectively, by limiting the establishment of incompatible uses in industrial neighborhoods and encouraging compatible uses. The General Plan Amendment would increase the exposure of existing businesses to incompatible uses. Policy LUT 5.6: Tnc1llstri~l Tmp~ct: Reduce the impact of existing industrial uses on adjacent residences, schools, and other sensitive uses. The General Plan Amendment would increase the number of residences adjacent to industrial uses. According to a study prepared by the Silicon Valley Manufacturing Group (SVMG), (Attached No.2), industrial businesses may experience increased cost of doing business when located near residential uses. The cost of insurance and more stringent hazardous material requirements may result when industrial uses are located in close proximity to residential uses. Traffic: McGlincy Lane is classified as an industrial and commercial collector. This street experiences significant truck traffic during early morning hours and the afternoon. Many of the businesses along this street require the delivery of materials and products and the transportation of equipment via larger trucks. This type of traffic is not desirable adjacent to residential uses due to noise, vibration and pedestrian safety. Industrial Uses: McGlincy Lane is characteristic of light industrial neighborhoods in Campbell with smaller industrial parcels with a wide variety of service and storage uses. Businesses include auto repair and body shops, manufacturing businesses, machine shops, smaller warehousing and distribution facilities, building contractors yard and offices and building supply companies. The operational hours of these businesses vary widely with early morning starting times as well as late night hours. Due to the variety of businesses, potential conflicts between proposed residential uses and the existing industrial business may occur, please see (Attachment No.3) that illustrates surrounding uses. Noise: Industrial businesses such as contractors yards many times begin operating in the early morning hours to permit the staging of daily operations. Machining and manufacturing processes require equipment and compressors that generate both noise and vibration to surrounding uses. Historically, the interface between West Valley Construction and the adjacent residential uses to the south have generated a number of early morning noise complaints regarding equipment staging. The proposed residential use borders this construction business. Hazardous Chemicals: Industrial businesses handle and process various chemicals not typically found in a residential setting. These chemicals present particular hazards as well as the potential ,-- Council Study Session - July 20, 2004 700-750 McGlincy Lane - Instant Storage and Bay Area Recycling Site Page 4 to create potential toxic odors to surrounding uses. For example the presence of an auto body shop requires the establishment of a spray booth that vents paint fumes into the atmosphere, the grinding, repair and preparation of the damaged autos generate significant noise and the storage of damaged vehicles and parts require significant storage needs. Similar characteristics are typical of machining processes, manufacturing uses such as cabinet shops, and service uses where chemical processes are utilized. Land Use Patterns: Approval to expand the residential land use along the south side of McGlincy Lane will create a finger island of industrial land use between McGlincy Lane and West Valley Drive to the north. See (Attachment No.4) which illustrates the requested land use pattern. If the Council is supportive of a residential land use change at this location, consideration should be given to changing the land use on the north side of McGlincy Lane to eliminate this island of industrial land use. This would create more logical boundaries between the industrial and residential land uses in this neighborhood. Residential Land Uses: The General Plan describes Campbell's need to reinforce neighborhood identities. Campbell has a variety of residential, commercial, industrial and mixed-use areas that have evolved into special, identifiable neighborhoods. As the General Plan states: Neighborhoods are the building blocks of the community. Thus, neighborhood integrity is the heart of community character. A neighborhood should have a central focal point that serves as a place for gathering and interaction. Neighborhoods should offer residents a range of recreational, commercial, religious and educational opportunities. Neighborhoods should also be pedestrian friendly and "walkable." Walkable neighborhoods are tree lined, safe, have pedestrian connections with surrounding neighborhoods and nearby shopping facilities and offer a comfortable walking and bicycling environment with ready access to public transportation. Issues that affect neighborhood integrity include the proximity of residential and nonresidential uses (incompatible land use), loss of connectivity to other neighborhoods, poor site design, lack of adequate public facilities and lack of identity. LUT page 22 Goals, policies and strategies in the Land Use and Transportation Element promote the enhancement of Campbell's neighborhoods. To create a desirable residential environment a variety measures would be recommended, if the City Council supports a residential land. use at this location. These measures include the following: 1. Provision of a wide landscaping buffer where the residential project abuts industrial uses similar to the buffer provided between Campbell Technology Park and the adjacent -- Council Study Session - July 20, 2004 700-750 McGlincy Lane - Instant Storage and Bay Area Recycling Site Page 5 mobile home park. 2. Integrate the circulation ofthe proposed residential use into the residential area south of the project site so that is not an isolated residential pocket and 3. Provide a better connection between the McGlincy Lane frontage so that the project is not isolated or walled-off from the community. Land Use Compatibility: The General Plan discusses the issue of land use compatibility. The regulation of land use is intended to promote land use compatibility. Land use incompatibility will result if development standards do not adequately address conflicts between different land use types. Incompatibility can occur when noise, traffic, parking, fumes or mechanical vibration disturbs adjacent uses. Incompatible land uses may occur where residential homes are adjacent to non-residential uses (such as commercial or industrial) or significantly higher density residential uses. Land uses typically incompatible with residential uses include, automobile and truck repair shops, late night and early morning uses, fast food establishments, and entertainment establishments such as nightclubs, bars, dance clubs, video arcade and liquor establishments. Limiting their number, controlling their locations and hours or methods of operation, or otherwise restricting their development or expansion can mitigate the negative effects of incompatible uses. Applicants Letter: The applicant has prepared the attached letter supporting the General Plan Amendment based upon the following points with staff responses in italics: 1. Market conditions have not supported the development of an 80,000 square foot research and development use previously approved on the site. The building at 603 Campbell Technology Parkway has been vacant for almost three years.- Market conditions have not been supportive of new research and development space. Alternative industrial service and supply uses may be a viable option that has not been pursued. 2. Campbell updated its General Plan in 2001 changing the land use of the adjacent parcels at 786 and 808 McGlincy Lane from Industrial to Low-Medium Density Residential. - The update of the land use of the adjacent industrial uses was to facilitate the extension of the adjacent townhome development at the intersection of Union Avenue and McGlincy Lane so as to reduce land use conflicts. 3. The proposed change reduces the interface between residential and industrial uses. The proposed change does not reduce the interface between industrial and residential uses. The proposed change significantly increases the exposure of residents to the traffic and industrial uses across McGlincy Lane as well as increases exposure to known land use conflicts in the area. Council Study Session - July 20, 2004 700-750 McGlincy Lane - Instant Storage and Bay Area Recycling Site Page 6 4. Noise from the industrial neighborhood is caused more by industrial garbage pick-ups versus the adjacent construction business. Limiting garbage pickups to industrial uses further restricts the ability to these businesses to conduct their normal operations. 5. The recent residential development on Gilman is surrounded by Industrial uses on all four sides. The Gilman project is located in a downtown neighborhood that no longer permits new industrial projects. Additionally, this residential project is in close proximity to Downtown, Campbell Park, and the light rail station. 6. This proposed residential project is in close proximity to the under utilized Edith Morley Park. Edith Morley Park currently is not easily accessible to this site from a pedestrian standpoint. 7. The project would have a lower traffic impact than a Research and Development project at this location. The morning and evening traffic impacts would be reduced with a residential use on this property. However, a conflict exists between the industrial traffic (trucks and larger vehicles) and the residential traffic of passenger vehicles, bicycles and pedestrians. 8. The project is located within the Campbell Redevelopment District thus increasing property tax revenues. The property tax revenues created by residential versus industrial development of the site are not significantly different. 9. The project would provide nine affordable units by participating in the Below Market Housing Program. There are adequate sites identified in the General Plan for more appropriately located housing. FISCAl, IMPACTS One-time City park impact fees of approximately $450,000 would result from the project. The incremental tax revenues between an industrial development of the project site versus a residential development of the site would not be substantially different. A I ,TRRN A TIVF,S 1. Direct the applicant to proceed in the development review process. 2. Direct staff to provide more information and analysis. 3. Provide direction not to proceed with the current proposal. A tt~chments: I. Related General Plan Policies Council Study Session - July 20, 2004 700-750 McGlincy Lane - Instant Storage and Bay Area Recycling Site Page 7 2. Silicon Valley Manufacturing Group - Non-Industrial Uses in or Near Industrial Zones 3. Surrounding Land Uses 4. McGlincy Lane- Land Use Pattern 5. Letter from James S. Chalmers - May 7,2004 6. Preliminary Site Plan & Elevations 7. Aerial Photo and Photographs of Surrounding Uses