i
ATTACHMENT 8
PLANNING DIVISION STAFF REPORT
AGENDA NO. 6.1.
SITE LOCATION 2450 Newport Boulevard APPLICATION NO. PA-91-102 AP # . 439-281-48 MANDATORY ACTION DATE April 25, 1992
APPLICANT Shin Shen Chen AUTHORIZED AGENT Merrill Butler, III (Owner of Record)
ADDRESS_ 2450 Newport Boulevard ADDRESS 401 Pirate Road Costa Mesa, CA 92627 Newport Beach, CA 92663
Alice B. Angus
Aiming is use of ted and or brings to do is a PREPARED BY Senior Planner cation pertains must be complied with whether specifier DATE PREPARED November 25, 1991 herein or not.
LAST UPDATE: November 25, 1991
REQUEST:
Conditional Use Permit to convert an existing hotel (The Travelodge) Into a 96 room, single-room occupancy (SRO) development.
STAFF RECOMMENDATION:
Approve, subject to conditions.
FINAL COMMISSION ACTION: November 25, 1991
Approved, based on Planning Staff analysis and findings contained in the Planning Division Staff report, subject to conditions. (4-0, Mr. Palme absent)
APPLICANT NOTIFIED . es DATE _ 12/3/91
CITY OF COSTA MESA, 77 FAIR DRIVE, COSTA MESA, CA 92628-1200 (714) 754-5245 COS09 MOSA 0380-30, Flew. 1/91
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APPL. PA-91-102
PAGE 2.
I. DEBCRIPTION
A. subiect Property
1. Location - 2450 Newport Boulevard
2. General Plan Designation - Neighborhood Commercial
3. Zone - C2
4. Present Development - Iwo-story motel (Travelodge)
5. Lot Area - 69,300 sq.It.
6. CEQA - Exempt
Surrounding Property
1. North - commercial, vacuum repair shop and
construction contractor's office
2. South - auto repair
East - multi-family residential
4. West - Newport Boulevard and Costa Mesa Freeway
c. Request
A Conditional Use Permit (CUP) to convert the existing
motel into a Single Room Occupancy residential hotel
(SRO) •
D. Background
Earlier this year the city council adopted policy
Number 500-5 to guide SRO development. This policy,
which is. attached, states that SRO projects will be
processed as a CUP in zones where hotels are allowed
with a CUP.
The policy also encourages potential projects to be
reviewed informally by the Planning Commission prior to actual Accordingly, this project was
brought before the Planning Conmission at an informal
Study Session in october initial feedback.
Subsequent to that meeting, the applicant submitted the application for this CUP.
In addition, the applicant has submitted requests for
funding assistance the Orange County Housing
Authority and requested City approval to seek
exempt mortgage revenue bonds to finance the purchase
and conversion of the project. The City Council did
adopt an Inducement Resolution on November 4th to
consider bond financing. Further action
project's financing is pending the outcone of the
project's review (this CUP).
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APPL PA-91-102
PAGE
Although this project is being processed as a CuP, it
is unique in that it is the first SRo development to be considered by the City. To guide the review of this
Policy 500-5. As a policy, the
parameters given are not absolutes, but rather general
guidelines against which to review specific projects.
As such, if the project does not "meet" a particular
parameter, a variance is not required. The reason the
City adopted the SRO parameters as a policy instead of
an ordinance was to allow flexibility to account for
both conversion projects and possible new construction.
II. PROJECT, DESCRIPTION
The applicant is requesting to convert the existing
Travelodge motel built in 1985 to a 96 unit SRO. As part of this project, the applicant wants to convert some of the existing parking spaces into a common open space area for III. PLANNING STAFF ANALYSIS
The following analyzes how the proposal compares with the City's SRO Policy.
1. Process. The site is zoned C2, developed with an
existing hotel and has a Neighborhood Commercial
General Plan designation. The Policy states that SRO
should be located in General Commercial or Commercial
Center designations. This commercial area along
Newport Boulevard is intended to be changed to General
Commercial in the 1990 General Plan, although the
Planning Commission has recommended that it remair
Neighborhood Commercial.
During the public hearing on the sRo Policy, the city
Council was alerted to the fact that the City may
receive applications for SRO development along this
is currently
designated Neighborhood Commercial. While the Council
did not change the Policy to include reference to this
particular area of the City, the Council did indicate
that this area is as appropriate for SRO development as other areas designated General Commercial.
2. Location. The nearest bus lines are on Orange Avenue and Del Mar Avenue. while not within 1,000 feet, they
do seem within a reasonable walking distance. The two
• lines both through-out the day with good
service during the morning and evening peak hours. The
Orange Avenue route extends south to Newport Beach and
APPL. PA-91-102
PAGE
north by South Coast Town Center, up Main Street past
Main Place and further north to the Mall of Orange.
The Del Mar Avenue route extends east through the
airport area to Irvine Valley College and west by
Orange Coast College then along Adams to Huntington
Beach. From this route connections can be made at
Adans and Harbor to continue either north or
southbound. A current schedule for both bus lines is
attached.
While Newport Boulevard is not a major employment area, of commercial businesses to the
north and south of the site, with a convenience market
to the south (within 1,000 ft.) at the corner of Wilson and Newport. The attached map indicates various retail
service uses within proximity to the
proposed project.
3. Room Sizes and Occupancy Limits. The existing units
(even when divided to eliminate existing suites) have
an average size of 340 sq.ft., slightly in excess of
recommended sg.ft. average. The proposal
consists of 96 SRO units: 95 "studios" and 1 one-
bedroom unit. The applicant is proposing that all of
the units be reserved for single occupancy but this may change as the applicant works through the funding
process.
4. Unit Requirements. Each unit is currently furnished
with bed (s) chairs, table(s), night stands, television, and telephone. The applicant plans to retrofit
kitchenettes into the existing sink/closet alcoves.
The bathrooms would remain intact. The kitchenette
design is still being worked out. At a minimum, the
kitchenette will include a sink with garbage disposal,
a refrigerator, a microwave oven and cabinets.
5. accommodate
landscape/recreation area adjacent to the pool.
Depending number of double occupancy units
proud be the pazking based on the Polley parameters
as follows:
no double occupancy = 79 parking spaces
10% (9 units) double occupancy = 86 spaces
20% (19 units) double occupancy = 94 spaces
The cure no a gar a gie porn occupancy.
6 APPI. PA-91-102
PAGE 5
staff has researched parking standards and studies
régarding SRO parking and low income residential
parking. In San Diego, the standard requirement is 0.2
space per sro unit. Actual parking at SROs that Stati
contacted ranged from a low of 38 of occupants having
automobiles
income average
ownership among this income group was . 6 autos per unit (non-SRO) •
Bicycle parking has not been designated, but the
applicant has indicated that it could be provided
within the secured parking area adjacent to the lobby.
6. Management and Security. The applicant is working in conjunction with a non-profit corporation to develop a
complete management plan. The applicant does have
plans to secure the parking lot entry through a code
activated gate and to restrict pedestrian access
through the front lobby area. The site is already
equipped with exterior video cameras and monitors in
the lobby area.
The applicant has also indicated a willingness to
install wrought iron on top of the existing block wall
that surrounds the site.
draft Management Plan details operational
characteristics of the SRO development.
7. Rental Term. The applicant is proposing all monthly
rentals to qualify for low interest housing loans.
8. Rental Rates. The City's Policy would equate to 48
units (508) affordable tenants
($665/month maximum), 24 units (258) affordable to very low income tenants ($456/month maximum), and 24 units
(258) affordable to the low end of very low income
tenants The applicant is
investigating various financing options and rental rate scenarios, including keeping a minimum number of units
affordable to minimum wage workers. The latest rental
rate scenario submitted by the applicant is as follows:
78 units (81.258) affordable to very low income tenants ($456/month), and 18 units (18.758) affordable to
minimum wage earners at $250/month.
Staff is concerned about the amount of security deposit that may also be charged to new tenants, the draft
APPL. PA-91-102
PAGE 6
management plan states that a "full security deposit is also payable at the signing of the lease". Staff
believes that although the city's policy does not
address limits on the amount of this deposit, it may be justified to do so to ensure affordability for future
tenants.
9. Common Areas. The common area standard for this size of project would be approximately 1,060 sq.ft. divided
between interior and exterior, with neither having less than 420 sg.ft.
The existing exterior pool area is approximately 2,000
sq.ft. The applicant intends to remodel the lobby area
to serve as the interior common area, the open lobby
area is currently approximately 700 sq.ft. As stated
in the parking section, the applicant also proposes to
some of the replace it with
landscaping, picnic tables, chairs, and bar-b-ques. the ci Based on current plan this
approximately 3,400 sq.ft. of outdoor recreation area.
10. Storage Areas. The applicant is proposing to build-in closet storage areas within the existing sink/alcove
areas. The issue of lockers has not been addressed
yet.
11. Laundry Facilities. The hotel has a large laundry
facility as well as coin operated laundry room. The
applicant is proposing to retain both of these
services.
CONCLUSIONS
The proposed SRO conversion meets most of the policy
In the cases where there is some
project, Let are it eat the deta to ave not yet been justified by the particulars of the is being converted. Some of the details have not yet been worked out and some of the proposals may change due to
funding qualification requirements. Therefore, conditions have been worded to allow for some fine tuning of the
project.
IV. PLANNING STAFF FINDINGS
A. The information presented substantially complies with Costa Mesa Municipal Code Section 13-347 in that the
proposed conversion of the existing motel into a
Single Room Occupancy residential hotel (SRO) is
8 APPL. PA-91-102
PAGE 7
substantially compatible with developments in the same
general area; granting of the Conditional Use Permit
detrimental to the health, safety and
general welfare of the public or other properties or
within immediate vicinity; and
granting of the Conditional Use Permit will not allow
a use, density or intensity which is not in accordance
with the General Plan designation for the property.
B. As required by Article 22-1/2, Transportation Systems Management of the City of Costa Mesa Municipal Code,
pay applicable traffic impact fees identified for the
Traffic Analysis Zone the project is located in prior
to issuance of building permits.
т. PLANNING STAFE RECOMMENDATION
Approve, subject to conditions.
т. CONDITIONS, IF APPROVED
Shall meet all requirements of the various City Departments, copy attached hereto.
9 APPL. PA-91-102
PAGE 8
CONDITIONS OF APPROVAL
Ping. 1.
tacon ance de the are ley authorized hereby 40P 4 revoked, perio at on day vacation and neEd
revocation at any time if the
eRe Raine upon theret approval das Based are no
longer applicable.
2. conditions of approval for the
Conditional Use Permit must be kept on premises and
presented to any authorized City official upon request. business/property owners shall be notified of
conditions of approval upon transfer of business or
ownership of land.
3. Decorative wrought iron shall be added to the top of the existing perimeter block wall, under the direction
of the Planning Division.
4. Securable bicycle storage shall be provided under the direction of the Planning Division.
5. Linens and regular laundry service for the room linens shall be provided at no additional charge to the
tenants. Coin-operated washers and dryers shall be
provided for tenant use.
6. Tenant income shall be limited to low and/or very low income levels with rental rates tied to these income
levels. Any change in the proposed rental
structure of 18 affordable to minimum
earners, and 78 units affordable to very low income
wage earners shall require approval by the Planning
Division. If any change would not comply with the
Council Policy No. 500-5, such change shall be referred back to the Planning Commission for review and
approval.
7. Security deposits shall be limited to one-half the
first month's rent unless a higher limit is approved by the Planning Division.
8. The draft Management Plan shall govern the operation of the SRO. Any modification to the Management Plan shall
require review by the Planning Division. If any change
would not comply with Council Policy No. 500-5, such
referred back to the Planning
Commission for review and approval.
9. The Planning Division shall be provided with the name, address, and telephone numbers for contact persons of
10 APPL. PA-92-102
PAGE
the management company and of any change made in the
management company.
10. During the first year of operation, quarterly reports (due March Ist, June Ist, September Ist and December
Ist) shall be submitted to the Planning Division
pertaining to the level of occupancy, certification of
tenant income and rental rates charged, automobile
ownership of tenants, and job locations of tenants.
I'hereatter, such report shall be submitted on an annual basis, due each March Ist.
11. Securable lockers or similar storage exterior to the tenants rooms shall be provided under the direction of
the Planning Division.
12. All units shall be single occupancy. Any proposed
change to double occupancy shall be reviewed by the
Planning Division. Any proposed change that would not
comply with Council Policy No. 500-5 relative to either double occupancy limits or parking requirements based
on occupancy shall be referred back to the Planning
Commission for review and approval.
13. The project shall conform with sections 4 - Unit
Requirements and 7 - Rental Term of Council Policy No.
500-5.
ORDINANCE AND/OR CODE PROVISIONS
Ping. 1. All contractors and subcontractors must have valid business licenses to do business in the City of Costa
Mesa. Final occupancy and utility releases will not be
granted, and final inspections will not be granted
until all such licenses have been obtained.
2. Parking stalls shall be double-striped in accordance with City standards.
3. Iwo (2) sets of detailed landscape/irrigation plans per the requirements set forth in Costa Mesa Municipal Code Sections 13-263 through 13-266, shall be submitted for
review and approval by the Planning Division prior to
issuance of any building permits. The two approved
sets shall be attached to the two final building plan
Drought resistant vegetation together with
water conserving irrigation system shall be utilized.
Landscaping shall be installed in accordance with the
approved plan prior to release of utilities.
4. All landscaped areas shall be separated from paved
vehicular areas by 6" high continuous Portland cement
concrete curbing.
5. Permits shall be obtained for all signs, including
banners and other special event signing, according to
the provisions of the Costa Mesa Sign Ordinance.
6. The paving under required covered parking spaces shall 11 APPL. PA-97-102
PAGE 10
be portland cement concrete (PCC) .
7. Concrete wheel stops shall be installed 2' from the
front edge of open parking spaces.
Bldg. 8. Comply with the requirements of the Uniform Building Code as to design and construction.
Fire 9. Provide fire extinguishers with a minimum rating of 2A to be located within 75 , feet of travel distance from
all areas. Extinguishers may be of a type rated
2A, 10BC as these extinguishers are suitable for all
types of fires and are less expensive.
10. Provide approved smoke detectors to be installed in accordance with the 1988 Edition of the Uniform Fire
Provide an automatic fire sprinkler system per orange
I1.
County SRo Housing Development Guide.
12. Provide 12" address numerals which conform to Fire
Department standards with respect to size.
13. Provide a fire alarm system per Uniform Fire Code, 1985 Edition.
SPECIAL DISTRICT REQUIREMENTS
The requirement of the following special district is hereby forwarded to the applicant:
Sani. I. Developer to contact the Costa Mesa Sanitary District at (714) 631-1731 for current District requirements.
ABA (pa91102) sro
12 condition 45 requizes the provlaton of linens and laundry service as part of the basic rent. The developer has requested and Staff concurs that the laundry service may not be necessary or desired by all tenants. The financial consultant and the County believe that this service should qualify as an added cost rather than being included within the base rent.
The following changes to Planning Conditions of Approval #5 and #6 are recommended to facilitate the public participation in funding of this project. Additional text is in italics and deleted text is shown with strike-outs.
5. Linens and regular laundry cervice for the room linens shall be provided at no additional charge to the tenants.
Regular laundry service for the room linens shall be
available to tenants at a reasonable additional charge.
This service schedule and charge shall be approved by the Planning Division. Coin-operated washers and dryers
shall be provided for tenant use.
* Tenant income shall be limited to low and/or very low income levels with rental rates tied to these neome
tovele the very low Income level. Any change in the
prepesed rental rate strusture of 10 unite affordable to minimum wage earnera, and 70 unite affordable to very tow ¿neome wage earnera shall require approval by the
Planning Diwicien The maximum rental rate would be 30%
of 50% of the Orange county median income as published by HUD and adjusted for single person household size. If
any change would not comply with either the Council
Policy No. 500-5 or this condition, such change shall be referred back to the Planning Commission for review and approval:
ABA(PA91102A.CND)
Attachment : PA-91-102 Staff Report
cc: Deputy City Mar. - Dev. Services
Assistant City Attorney
Assistant City Engineer (2)
Fire Protection Analyst
Staff (4)
File (2)
Butler-o Bryon & Associates
485 E. 17th Street Suite 501
Costa Mesa, CA 92627
Shin Shen Chen
2450 Newport Boulevard
Costa Mesa, CA 92627