o ROMNG 1-06 teport'
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Elizabeth C. Oba, Director of Planning and Building Services SUBJECT: Consideration and possible action to consider a General Plan Amendment (GPA); a Development Agreement (DA) by and
between the City of Bellflower and Terrace Group Holdings, LLC (“TGH”) to construct a four-story self-storage facility on property located at 8825 Artesia Boulevard (APN 7162-002-087) within the West Artesia Specific Plan; activating the Development Agreement Zone Layover (DAZL); and amending the zoning map (ZC).
DATE: February 24, 2025
EXECUTIVE SUMMARY
TGH filed an application with the City on January 30, 2025 seeking approval to construct a self-storage facility on vacant property located at 8825 Artesia Boulevard within the West Artesia Specific Plan (“WASP”). This land use is not currently permitted within the WASP. Accordingly, the proposed project — in order to be approved — would require a GPA, DA, DAZL, and ZC. After reviewing the application, the Director of Planning and Building Services (“Director”) recommends denying the project. Should the City Council receive and file this report, without taking action, then the Director will process the application in accordance with applicable law including, without limitation, environmental review to comply with the California Environmental Quality Act (“CEQA”). Note that all of the land use decisions contemplated by the application are legislative, i.e., they are completely discretionary decisions that may be considered by the City Council. Nothing in California law, the City’s Charter, or the Bellflower Municipal Code (“BMC”) requires that the City Council grant the approvals requested by the application.
RECOMMENDATION T9 CITY COUNCII=
1) Deny the project application;
2) Receive and file this report without taking action; or 3) Alternatively, discuss and take other action related to this item. (Note: The project cannot be approved before environmental review is completed.)
«lg staf 13-3
Staff Report — DAZL
February 24, 2025
FISCAL IMPACT
The applicant proposes payments of $170,000 per year to be paid to the City to offset the estimated loss of revenues the City would otherwise receive in Transient Occupancy Tax if the site were developed with a hotel. Such payments would continue in perpetuity (i.e., interest only; non -principal amortizing) unless bought out in a lump sum under specific circumstances. In the event of a buyout, the applicant would pay the City a lump sum of $2,125,000 (referred to as "Net Present Value (NPV)" in their proposal). $170,000 annual interest -only payments at NPV of $2,125,000 translates to an annual interest rate (referred to as "discount rate" in their proposal) of 8%.
BACKGROUND
➢ West Artesia Specific Plan
The property is located within the West Artesia Specific Plan (WASP), which is a freeway - oriented commercial zoning designation intended to facilitate redevelopment within the specific plan area. The WASP was adopted in 2007 and was amended in 2011 and 2019.
The 2019 amendment (Specific Plan Amendment No. No. 2) — proposed as part of a multi -phase project for two hotels on adjacent parcels - included a zoning amendment to include additional land uses, including hotel and extended -stay hotel uses, and established development and operational standards for hotel uses. Ultimately, an extended stay hotel was developed on the adjacent parcel, but this parcel was never developed.
➢ Previous Entitlements
On April 18, 2019, the City Council approved Conditional Use Permit (Case No. CU 18- 12) to allow a 69 -room hotel on the subject site with parking provided on site and through an agreement with the adjacent parcel owner to provide 11 parking spaces for this site.
Based on recent calculations, if this hotel were to have been developed, it could be expected to generate approximately $170,000 annually in transient occupancy tax ("TOT"). On May 26, 2020, a one-year time extension was granted by the City Council due to financial and economic constraints at the time. On May 24, 2021, an additional one-year time extension was granted by the City Council. The site remains vacant.
DISCUSSION
➢ Proposed Project
The proposed project consists of constructing a new, four-story, 141,868 square foot self - storage facility on the subject site. The proposed facility incorporates a modern design and is secured in that access to each of the storage units is from inside of the building.
There is approximately 105,000 square feet of rentable storage space. The applicant indicates that the facility is a low -intensity use with insignificant traffic, minimal impacts on utilities, and low water and sewer needs. Sixteen parking spaces are provided on -site, and eleven shared parking spaces are provided on the adjacent Woodspring Suites lot through the aforementioned agreement with that owner.
-2-
Staff Report — DAZL
February 24, 2025
DISCUSSION — Continued
The WASP currently does not allow for self -storage facilities, nor does it incorporate any development or operational standards specific to self -storage facilities. In order to allow for a self -storage facility on the subject site, a DAZL, DA, ZC, and GPA are required. ➢ Development Agreement Zone Layover (DAZL) & Zone Change (ZC) The DAZL was created in 2020 for the purpose of identifying sites and areas within the City that are subject to the requirements of adopted development agreements and to provide flexibility for otherwise strict development or sign regulations that would otherwise be applicable to the underlying zone. Since the WASP does not allow for a self -storage facility, the DAZL is a mechanism that could allow for the proposed use and to establish specific development standards for self -storage facilities on the subject site. The allowable uses and development standards would need to be incorporated into the Development Agreement to be approved by the City Council. The ZC is required to change the zoning of the site from WASP to DAZL. Also, since the zoning of the site is proposed to be DAZL, the use (self -storage facility) and the development standards contained within the Development Agreement would only be allowed at the subject site, not the entirety of the WASP.
➢ Proposed Development Agreement Terms
The DAZL must be accompanied by a Development Agreement. The Development Agreement terms proposed by the applicant include:
• Annual Payments. The applicant proposes to pay the City $170,000 annually in perpetuity intended to offset the estimated TOT that a 69 -room hotel would otherwise generate at this site.
• Buyout Provision. The applicant proposes to allow for a lump sum buyout option under two specific conditions:
o City -Initiated Buyout Option: To provide financial flexibility, the City of Bellflower may trigger a buyout option at any time after five (5) years. If exercised, the buyout amount will be determined based on the Net Present Value (NPV) of the remaining perpetual payments.
o Developer -Initiated Buyout Option: Terrace Group Holding may initiate a buyout after ten (10) years. The buyout amount will be determined based on the Net Present Value (NPV) of the remaining perpetual payments. • Buyout Financials (Lump -Sum). The applicant proposes that the buyout amount be established as the Net Present Value (NPV) of the $170,000 annual interest - only payments, calculated using an 8% discount/interest rate. This calculation yields a buyout sum of approximately $2.125 million.
• Alternative Hybrid Structure. As an alternative, the agreement may include a hybrid payment structure. This structure consists of:
o A one-time upfront lump sum payment accessible by the City; and o A reduced perpetual annual payment.
-3-
Staff Report — DAZL
February 24, 2025
DISCUSSION — Continued
➢ General Plan Amendment
The General Plan Land Use designation for the subject site is Commercial ("C").
Currently, self -storage facilities are not consistent with the General Plan Land Use designation of Commercial. The General Plan Amendment includes changing the General Plan Land Use designation from Commercial ("C") to Industrial ("I"). The proposed self -storage facility use is consistent with the General Plan Land Use designation of Industrial.
CEQA STATUS
Following review of the application, the Director recommended the project be denied.
Consequently, the City did not conduct environmental review to comply with the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.; "CEQA Guidelines"). Projects that are denied do not require environmental review under CEQA (CEQA Guidelines §§ 15061(b)(4) and 15270). Should the City Council receive and file this report, the application will be processed in accordance with applicable law including, without limitation, environmental review.
CONCLUSION
It is recommended that the City Council consider the proposed project and the terms of the Development Agreement as proposed by the applicant and provide direction to staff.
Absent the necessary CEQA reviews, the project cannot be approved. Should those items be completed, the City Council could consider the complete application, including the necessary development agreement at that time. At this time, it is recommended that the application be denied.
ATTACHMENTS:
A. Project Summary Provided by Applicant 5
B. Plans 8
-4-
Self -Storage Facility
8825 Artesia Blvd.
Bellflower, CA 90706
New Self -Storage Facility Proposal
8825 Artesia Blvd.
Bellflower, CA 90706
January 2025
Property Description
Located in the City of Bellflower Ties an undeveloped parcel that is approximately 1.33 acres or 57,934 SF in size. The property is surrounded by the 91 Freeway to the North, an extended stay hotel to the East, a Travel King Motel & Artesia Motor Inn to the South, and Industrial uses along with the Vans Mobil Home Park to the West. Currently, the property is accessed at the dead-end/cul-de-sac of Palm Street, which is wedged between the 91 Freeway and the industrial properties to the East.
The subject property is included in the City's West Artesia Specific Plan, which underwent an update in 2019 to amend the specific plan boundaries and include hotel use.
Specifically, the subject property and neighboring property were envisioned in the specific plan text as containing an extended stay hotel and a traditional hotel.
The neighboring property maintains an extended stay hotel as envisioned in the specific plan. However, the subject property remains vacant and unimproved due to the reasons described below.
Current Property Limitations
The ultimate development and use of the subject property are limited by several site specific, economic and regulatory factors.
Firstly, the subject site abuts the 91 Freeway, which produces large amounts of nitrogen oxide (NOx) and sulfure oxide (SOx) as a result of vehicle emissions. Due to these emissions, many hesitate with placing residential type uses closer than 300 feet of large freeways. This would include hotel uses as well. Additionally, between the property and the improved portion of the 91 Freeway is a large overgrown right-of-way easement that is included in the 91 Freeway. This easement varies from 45 FT to 95 FT in width, and is characterized by dense overgrowth, large amounts of trash and vagrants taking advantage of the hidden and unkempt nature of the easement. Drug and public bathroom use are regular occurrences along this easement area. The entirety of the northern side of the subject site shares its property line with this easement.
Compounding the easement constraint is the access to the subject property. The current access point with the least amount of impact is Palm Street. This roadway runs parallel to the 91 Freeway, between the overgrown 91 Freeway easement, the rear of industrially used properties, and the Vans trailer park community. Palm ends in a dead-end/cul-de- sac at the subject property. This path -of -travel is not conducive for high -traffic uses.
Additionally, community reports of abandoned cars, trash and unseemly activities of 1 -5-
Self -Storage Facility
8825 Artesia Blvd.
Bellflower, CA 90706
vagrants would make many customers or family unfamiliar with the area feel uncomfortable traveling.
Alternatively, the remaining option for site access is from Artesia Blvd. A city easement exists for vehicles to drive through the existing extended stay hotel parking lot, around the hotel building and into the subject property. This indirect and convoluted path -of - travel creates an overlap of cars and pedestrians as the vehicles are funneled through to the neighboring site. Additionally, customers traveling eastbound on Artesia Blvd. would need to cross the westbound lanes of Artesia mid -block to access the site. This is not ideal for the neighboring hotel, its customers, or those utilizing the subject site.
An indicator of the site's constraint is realizing the Specific Plans intention of the subject site being developed as a hotel is the fact the site has remained unsold and undeveloped for the past six plus years. The parcel size cannot functionally support the size of a hotel and its parking that are needed to make economics. Additionally, the unique location of the site next to a major freeway, unkempt freeway easement and difficult access are safety concerns for potential families using a hotel.
Lastly, the West Artesia Specific Plan placed further use restrictions on the properties located within its boundaries. The plan does not consider the subject site's size, access, and abutment to the 91 Freeway limitations.
The previous policy decisions and the practical limitations of the subject property are not complimentary to one another and have led to years of vagrant encampments, security issues, and missed tax revenue.
Proposed Project for Development Agreement
There is a notable lack of modern self -storage facilities within the City of Bellflower. This shortage forces residents to seek storage options elsewhere, thereby boosting economic development in neighboring jurisdictions. Highlighting the need for a local solution, the proposed project addresses this shortfall by providing a state-of-the-art, secure, and energy -efficient storage facility that meets the community's needs.
The proposed project would comply with the West Artesia Specific Plans area and height requirements for a new, four-story, 45 feet, approximately 105,000 SF of net rentable space, that will transform an underutilized and unsecured parcel into a safe, aesthetically appealing, and functional site, offering a significant upgrade to the area.
The low -intensity use results in insignificant traffic, minimal impacts on utilities, and low water and sewer needs. The design will include motion sensors, a multitude of security cameras and gate, high -efficiency energy systems, and sustainability features. These efforts combined with the economic and security benefits the project will provide will only enhance its neighbors or surrounding community.
In keeping with the goal of enhancing and securing the overall area, the new development would require a robust design, landscaping, and site improvements. By revitalizing the 2 -6-
Self -Storage Facility
8825 Artesia Blvd.
Bellflower, CA 90706
site and enhancing the surrounding neighborhood with secure, modern self -storage solutions, the project contributes positively to the local economy and community while addressing long-time safety and security concerns.
Ultimately, a modern self -storage facility complements the surrounding community, and supports the storage needs of both residents and businesses, making it a practical and compatible use in the community. Thereby allowing a use that fits the constraints of the subject site while increasing the City's tax base and removing years of neighborhood blight.
Development Agreement Zone Layover (DAZL):
The City of Bellflower has created the "Development Agreement Zone Layover" (DAZL)(BMC 17.67.010) to address site specific issues that impact the use and development potential of a site. Additionally, the utilization of this code section allows for the City to enact specific thresholds and conditions to ensure development aspects that adhere to its standards and desires.
By ensuring the proposed self -storage facility includes appropriate security measures, on - site aesthetic improvements, and economic benefits through the development agreement process, the city can enhance the community through the proper use of the DAZL ordinance. All while having a minimal impact on local utilities and the surrounding community. Given the high demand for modern storage options in the area, this project offers a practical and compatible use that revitalizes the site and enhances neighborhood safety and functionality.
Despite the City's overt desire for a hotel to occupy the long-time vacant and undeveloped site, there has been no interest. This lack of development interest stems from the property's unique limitations and governance by the West Artesia Specific Plan, which has unintentionally isolated the subject site and allowed it to become a blight and financial albatross. Utilizing the DAZL allows the City Council to correct these limitations while conditioning and securing a better development and use. 3 -7-
m ARCHITECT URE
& DESIGN
ARTESIA & PALM STORAGE
8825 ARTESIA BLVD, BELLFl,()W ',R, CA 90706
JANUARY 30, 2025
LIST OF EXHIBITS
1. COVER SHEET
2. ZO NING M ATRIX
3. SITE PLAN
4. CONCEPTUAL COMM ERCIAL SCHEME - ELEVATIONS
5. CONCEPTUAL COM MERCIAL SCHEME - LO OKING WEST FROM HOTEL
6. CONCEPTUAL COM MERCIAL SCHEME LOOKING SOUTH FROM FREEWAY
7. CONCEPTUAL HOTEL SCHEME - ELEVATIONS
8. CONCEPTUAL HO FEL SCHEME - LOOKING WEST FROM HOTEL
9. CONCEPTUAL HOTEL SCHEM E - LOOKING SOUTH I ROM FREEWAY 0 2021 SUL MAN GOULERER & WILSON. LTD. /SGWARCH. COM
ARCHITECT
SULLIVAN GOULETTE WILSON, LTD
444 N. MICHIGAN AVE, SUITE 1850
CHICAGO, IL 60611
TEL: (312) 988 - 7412
www. sgwarch. com
DEVELOPER
ARTESIA AND PALM REALTY LLC
1800 VINE ST
LOS ANGELES, CA 90028
E MAIL: [email protected]
IV
......... 3\v :RoCEI eCTURe
& DESIGN
Z oni ng Data
8825 Artesia Bivd,Bellfl ower, CA 9O7O6
T/2912025
DELLFLOW ER Z ONING O INN ANCE
BULK & D ENSITY
I \I SI1\(:
U )NI A(
\'.kid \\('.1(.S PROPOSED PRUJI(("1'
Lot Area [SF]
Zoning District
Use Group
Maximum Lot Coverage [% ]
Maximum Lo t Coverage [SF]
57,934.00
Vacant
Vacant
0 .5
28,967.0
Confirm wl C ty
Variance Required
57,934.0
General Commercial
Self Storage
Actual Lot C overage[ %]
Actual LotC overage[SF]
0 .6
35,467.0
YAR ])S/I IEIGIIT
Re qu ired Yards [ft]
Maximum Bu ilding Height [ft ]
C OMMERC IA L PA RKIN G/LOADING
Front
Side
Rea r
10'-0"
5'-0"
5'-0"
NONE
Proposed
Propos ed
Prop osed
Prop osed
10,-0"
5'-0„
4V-8"
4 Stories
Re quired Off Street Parking Spaces
Requ ired Accessible Parking Spaces
Required Off Street Loa din g
TBD
1 per 25 spaces
(4) 10 x 20 spaces
Confirm w/ City Provided
Provided
Variance Required Provided
16 spaces +
11 Sh ared
Spaces = 27
spaces
I p er 25 sp ac es
1 sp ace
A RCHITE CTURE
& DESIG N
8825 ARTESIA BLVD
BELLFL OWER, CA
ZONING DATA
JANUARY 30, 2025 2
AR CHITE CTURE
& DESIGN
44/
co
355.77'
SI;
10,-0
ARTESIA BLVD
SB
242.-4 '
O
r
UTILITY J
EASEMENT
8825 ARTESIA BLVD
PROPOSED NEW 4 ST ORY CLI MATE
CONTROLLED SELF ST ORAGE F ACILITY
35,467 SF FOOTPRINT
141,868 GR OSS SF
OFFICE
LOADING
°' m
Mm
0 42.3
(11) SHARED PARKING SPACES
CANOPY
A BO VE,
TYP.
(8) PARKING -
SPACES
(8 PARKING
SPACES
LOADING 44
BILLB OARD
UTILITY
ROOMS
s,s;a:
8825 ARTESIA BLVD
BELLFLOWER, CA
0 1O 2O
40. 1' = 40'
(I> N
CONCEPTUAL SITE PL AN
80'
J ANUARY 30, 2025 3
! if
I ON
NMI
EAST ELEVATION
NO RT H ELE VATI ON
WEST ELEVATION
lkitir
SOUTH ELEV ATION
PARAPET
EL: +41'4
R OOF
EL: +39'-2
FOURTH FL OOR
EL +29'-8
T HIRD FLOOR -24
EL: +20'
SEC OND FL OOR*
EL: +10•-8
FIRST FLO OR
EL: +0' O"
PARAPET
EL: V-8-9
ROOF
EL 3EL 3 +92
FOURTH FL OO R*
EL +2S-8
THIRD FL OOR
EL: +20'-
SECOND FLOOR*
EL: +10'-8
FIRST FLOOR li
EL: +0.-o•
Y
PARAPET
EL: +41'-8
ROOF
EL: +39'-2
F OUR TH FLOO R
EL: +2E-8
THIRD FLOOR
EL: +20'-2
SECO ND FL OOR*
EL: +10'-8
FIRST FLO OR
EL: +0'-0 '
PARAPET
EL: +41,8
ROOF
EL: +39'-2
FOURTH FL OOR*
E L• +29'-8
THI RD FLOOR 4
EL: +20'-2
SECOND FLOOR
EL: +10'-8
FIRST FLOOR
EL: +0'-0 '
A RCHITECT URE
& DESI GN
8825 ARTESIA BLVD
BELLFLOWER, CA
1 ._30'
010 20 30 ea
CON CEPTU AL COM MERCIAL
SCHE ME -ELEVATIONS
JANUARY 30, 2025 4
EAST ELEV ATI ON
r
■a.
NORTH ELEV ATI ON
IONA '1111111111
WEST ELEVATION
1 (:LF STORAGE.
SOUTH ELEVATIO N
P ARAPE T
EL: +41'-0'
ROOF
EL: +39'-2'
FOURTH FLOOR
EL: +29'-8
THIRD FLOO R d+
EL: +20'-2
SEC OND FL OOR
EL: +10'-8'
FIRST FLO OR
EL: +0'-0
PARAPET
EL: +41'-8'
ROOF
EL: +39. 2'
FO URT H FLO OR+,
EL: +29'-8'
THI RD FLOO R
EL: +20'-2'
SECOND FLOOR}
EL: +10'-8'
FI RST FLOOR
EL: +0'-O'
PAR APET
EL: +41'-8
ROOF
EL: +39'-2'
F OU RTH FLOOR
EL: +29'-8'
THIRD FLO OR
EL: +20'-2
SECOND FL OOR
EL: +10'-8'
FI RST FLO OR
EL: +0'-0"
PAR APET
EL 14EL + '
R OOF
EEC
FOURTH FLOOR
EL: +29'-8'
THIRD FLO OR
EL: +20'-2
SE COND FLOOR
EL: +10•-8
FIRST FLOOR
EL: +0•-O
SC\O- VA/
ARCHITEC TURE
& DESIGN
8825 ARTESI A BLVD
BELLFL OWER, CA
1'= 30'
0 10 20' 30' BO'
CONCEPTUAL HOTEL
SCHEME -ELEVATIONS
J ANUARY 30, 2025 7