Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: Consideration of a resolution to approve Design Review and a Density Bonus for the Cotati Station Apartments Mixed-Use project, allowing construction of 98- residential units and approximately 5,500 square feet of commercial space on three un-addressed parcels totaling 2.48 acres on Santero Way, in the Santero Way Specific Plan. The project also includes construction of an adjacent City park and City parking lot. File No. PA21/16
Date: June 14, 2022
Written by: Noah Housh, Director of Community Development Recommendation
It is recommended by the Planning Commission and the Community Development Department that the City Council adopt a resolution to approve the requested Design Review and Density Bonus for the Cotati Station Apartment project, a mixed use project consisting of 98- apartment units and 5,500 square feet of commercial square footage on 2.48 acres in the Santero Way Specific Plan area.
Project Description
Utilizing the State Density Bonus Law, the Colvin Group LLC proposes to construct 98 multifamily units and 5,615 square feet of commercial space together with required parking on vacant parcels totaling 2.42 acres on the east side of Santero Way within the Santero Way Specific Plan Area (SWSP). 20 of the 98 units (20.41%) would be restricted as affordable housing for a period of 55 years. The balance of the units would be rented at market rate. Additionally; the project includes the development of a 0.49-acre public park and improvement of an undeveloped 0.65- acre city-owned parcel to be built as a community parking lot.
The entitlements requested for the above development are Design Review and a Density Bonus.
However, the applicant is also requesting that the City Council approve deferring collection of the project’s impact fees to (prior to) occupancy rather than upon building permit issuance and that the City Council approve using the City’s Affordable Housing Fund to off-set the impact fee cost of the Very Low and Low income units. If approved, staff would return with an Affordability Agreement to formally implement the affordable housing requirements and direction provided by the City Council.
Background
March 2001
The Santero Way Specific Plan was adopted to guide the development of a new approximately 19-acre neighborhood adjacent to the SMART station. It, together with the City’s Downtown Specific Plan, are designated as Priority Development Areas (PDAs) in Plan Bay Area, adopted by the Metropolitan Transportation Commission (MTC) and Association of Bay Area Governments (ABAG) as the region’s Sustainable Communities Strategy.
June 12, 2013
The City Council held a public meeting to discuss the traffic and parking issues facing the residents living on Santero Way, and voted to support the multiple options discussed to address the identified traffic and parking issues facing the neighborhood.
March 8, 2016
The applicant filed Design Review and Use Permit applications requesting a density bonus to construct a three story 74 unit and 5,540 square feet of commercial space mixed use development, together with a public park and adjacent city owned parking lot.
August 29, 2016
The Design Review Committee recommended preliminary design review approval for the amended project.
October 3, 2016
The Planning Commission conducted a public hearing and adopted resolutions recommending that the City Council approve the requested Design Review and Density Bonus Use permit and approve the proposed project.
October 25, 2016
The City Council held a public hearing and adopted resolutions to approve the requested Design Review and Density Bonus Use permit allowing the project to move to construction.
January 2018
Building plans were submitted and the initial plan check was completed however the permits were never issued and construction did not commence.
October 23, 2018
The City Council granted a one-year extension to the Cotati Station Apartment project, extending the project approval to October 2019.
August 2019
Continuing to experience challenges with financing the project, the applicant submitted a timely request for a second extension of the project approvals, in keeping with the requirements of Cotati Municipal Code Section 17.64.080(B)(2). This Extension was also approved and extended the life of the approved project.
October 22, 2019
In a pivot for a new, creative option to construct the project, the applicant considered constructing the project as a 100% affordable housing, to open additional financing options. To accomplish this, the Colvin Group partnered with Bridge Housing of San Francisco. Shortly after this partnership was formed, the City Council approved a financing request from Bridge Housing, granting $750,000 in City of Cotati Affordable Housing Funds to support construction of the Cotati Station project as a mixed income, 100% affordable workforce housing development.
December 2019
Due to changes in the tax credit financing mechanisms and approval processes, Bridge Housing was unsuccessful in qualifying the Cotati Station for these funds and indicated they would not be pursuing the project.
March 2020
In response to the Covid-19 pandemic, the City Council adopted a resolution extending all approved projects until 6-months after the pandemic emergency declaration is rescinded. This is the only mechanism keeping the current approval of the project valid.
June 2021
A new project application proposing minor changes to the exterior of the approved project design, and an increase in the total number of units, from 74 to 98, was filed with the City.
February 2022
A Notice of Application was sent to all residents within 500-feet of the proposed project, notifying them of the new project application and asking for their input and comments.
April 20, 2022
City staff hosted a Neighborhood Meeting to allow the developer to present their project to neighboring residents, the City to describe the review and decision process and for the neighbors to ask questions and gain insights about the project and the City’s development review process.
May 2, 2022
The Planning Commission held a Public Hearing to consider the requested project. After receiving the staff and applicant’s presentations, all public input including 13 written letters (attached) and one spoken comment, the Commission voted 4-0 (Commissioner Savage abstaining) to recommend that the City Council approve the requested Design Review and Density Bonus allowing the project to increase from 74 residential units to 98 units.
Analysis/Discussion
In place of the approved 74 unit project, the revised Cotati Station Apartment project proposes to build 98 units and approximately 5,500 square feet of commercial space. To achieve this unit increase, many of the approved 3-bedroom units would be reconfigured into 1-bedroom units, and minimal changes to the approved site plan and exterior design of the project’s three 3-story buildings would be made.
The proposed architectural changes include:
1. Removing the balconies serving 18 units and reducing the size of the balconies serving 8 if the units.
2. Revising the façade material of the commercial space from horizontal siding to stucco to further define the commercial space from the residential.
3. Modifying the design of the metal sunshades of the commercial storefronts to further define them from the residential areas.
Other that the design modifications identified above, the proposed exterior of the project is consistent with the past Cotati Station project approval. Two of the buildings open onto a central courtyard and one building faces onto a future public park to be constructed at the expense of the developer. Other than the identified changes to the exterior elevations to better differentiate the commercial space and accommodate the new unit configurations, this revised project keeps the design identical to the project that is currently approved.
The walk-up apartment units in Building 1 will be accessed from a breezeway off the parking area, and apartment units in Buildings 2 and 3 will be accessed from a breezeway from Santero Way and the interior courtyard. The 5,500 square feet of commercial space will occupy ground floor area fronting onto Santero Way in Buildings 1 and 2. The proposed uses include the project leasing office, additional speculative office space and a gym serving both residents and the public.
Internally, the project proposes to modify the floor plan to revise the unit count from:
Approved Project
6 one-bedroom units, 41 two-bedroom units and 27 three-bedroom units=74 units Proposed Project
58 one-bedroom units, 33 two-bedroom units and 7 three-bedroom units=98 units Project Architecture
The project’s architectural style is reminiscent of turn-of-the-century commercial structures with horizontal siding, flat roofs and decorative cornice treatments. The buildings are clad in horizontal siding in three colors - muted blue, brown and tan. The mix of colors, widths and planes help to break up the three-story massing and provide interest to the buildings from the street. A mix of siding materials, metal awnings, gates and railings and brick patios provide an interesting mix of materials. The project’s upper floor units will be accessed through grouped internal stairs and hallways while the ground floor units will also have access through private patios. See Page A2.1-A2.6 of project plans for architectural details.
Much of the project parking has been placed toward the back of the site, away from the street.
Enhanced landscaping has been used at project entryways to screen project parking from view. In addition, to better screen parking and provide adequate and convenient bicycle parking, bike lockers have been placed at project entry drives with landscaping surrounding the structures.
Colored and stamped paving is being used in the parking areas which will provide contrast and relief from unbroken expanses of black asphalt. Similarly, concrete pedestrian paths through the project and courtyards will be differentiated through color and scoring patterns.
Project Landscaping
The proposed design incorporates interior courtyards and is using landscaping to create an outdoor “living room” as common open space to serve the residents. The parking area off of Santero Way will be screened with an landscape buffer and bicycle enclosure softened with vines. Vines and a dense hedge planting with trees are proposed in the buffer between the project and the SMART right of way. Since the initial approval SMART has provided comments regarding the specific planting materials to be used along the railway right of way and specifications for bike racks. The developer has agreed to comply with their comments.
Water landscape efficiency standards were met with the final landscape plan approved with the previous project, and these details remain consistent with the updated design. The City’s consulting landscape architect firm reviewed the plans and suggested revisions to the landscape plan for final design review, which were included. The revisions elaborate upon the detail of the plan set and define the water use of all plants. The proposed 2022 landscape plan remains unchanged from the approved landscape plans, other than the planting modifications requested by SMART along their right of way.
Site Drainage
Storm water regulations do not allow storm water run-off of the site to increase with development over the amount of runoff currently leaving the site in its undeveloped condition. The project design captures all the storm water from the site and delivers it to one of two destinations. The drainage for the site around Buildings 2 and 3 will flow through a bio-swale along the eastern edge of the property before entering underground stormwater storage and transmission infrastructure on the southern edge of the property. Drainage for the balance of the site and around Building 1 will be directed to one of two bio swales and underground storm water storage and infiltration running along the edges of, and underneath, the adjacent (future) public park (see sheet C5.0 - 5.3).
Public Park
The proposed project would construct the previously approved public park, which was designed as passive open space and reviewed through a public process with the Design Review Committee and the previously approved project. The preliminary concept shown on sheet L0.1 and L0.2 depicts a series of pedestrian paths, seating areas and open turf areas. Two bio-retention swales to accommodate the drainage of the development and the public street would be located centrally beneath landscaped areas of the park. The park users are anticipated to be both community members, SMART commuters and the general public. The park design was previously approved and the project proposes to construct the approved design.
Community Parking Lot
East of the public park the developer will construct a 32-stall parking lot area on a city-owned parcel. The parking area will serve as the parking lot for the public park and will provide overflow parking for the greater Santero Way community of residents and visitors. The parking lot design will conform to the materials, fixtures and design of the adjacent SMART parking lot (see Sheet A1.2 for details).
Depot Way
The project will also extend Depot Way from its current terminus in the Sonoma County Transit parking lot to the proposed development’s northeast corner with a 26-foot wide street section, including street parking spaces. This extension will provide access to the parking area as well as a secondary means of access to the project site for resident and fire department needs. An additional 16 on-street parking spaces are proposed to be constructed by the developer along the Depot Way extension, proximate to the parking area. Bulb outs, curbs and planting islands will be developed within the parking area and along the extension of Depot Way (see Sheet A1.2).
Santero Way Changes
Due to public safety and fire access concerns, the Rancho Adobe Fire Protection District (RAFPD) requested widening of Santero Way to accommodate fire apparatus needed to serve structures over two stories in height. In response, the developer will remove the existing bulb outs and 11 on-street parking spaces in front of the existing park south of the project site. Parking along the existing park frontage is currently prohibited after 11:00 pm in consideration of fire suppression and evacuation response needs. The overnight hours are when most residents are expected to be home and when fire safety concerns would be the highest. A narrow roadway width could potentially impede fire response. With the proposed improvements, the narrow sections will be removed. The 11 parking spaces are being replaced further north along Santero Way so there is no loss of parking. In addition, RAFPD requested, and the City approved an Evacuation Easement on the City owned 950 E. Cotati Avenue property adjacent to the SMART station.
Density Bonus and Unit Affordability
The Santero Way Specific Plan planned for 48 units on the subject site (the base zoning- primarily based on the CEQA analysis) and the City previously approved a 74-unit project under State Density Bonus regulations. These State density bonus regulations (Government Code § 65915) have been updated since the October 2018 approval of the 74-unit project allowing an applicant to request a 50% density bonus if 15% of the total project units are restricted for occupancy to very low-income households. These state regulations are meant to incentivize the production of affordable housing and any housing development can elect to take advantage of these allowances.
As is demonstrated below, the applicant is requesting a density bonus of nearly double the base zone and is proposing a significant number of affordable units beyond the State density bonus program to support this request. The applicant is proposing to 8 units for occupancy by very lowincome households (or 16.67% of the based zoning, exceeding the state requirement of 15%), to qualify for the maximum 50% density bonus.
The density bonus calculation is as follows:
48 Units per base zoning
x 50% Density Bonus by providing 15% as Very Low-Income 24 Total Density Bonus Units
+ 48 Base Zoning
72 Total units including state density bonus
The applicant requested 98 unit project is 26 units beyond the 50% density provided solely through the State Density Bonus program (as shown in calculation above). Through government code § 65915 (n), additional units can be requested, and the governing body has the authority to approve the additional units requested. Similarly, the City Council may grant alternatives to the inclusionary housing requirements identified in Cotati Municipal Code (CMC) Chapter 17.31, which requires a minimum of 15% of a projects base density be designed as below market rate (BMR) units. Specifically, Section 17.31.060 identifies the process required for the Council to approve such an alternative and states that such an approval should be based on a finding that the purposes of the City’s affordable housing regulations would be better served by granting such an alternative.
As has been demonstrated in the project design plans, the applicant proposes to incorporate these additional 26 units with minimal changes to the exterior of the approved building designs. Rather, through internal revisions to unit sizes and lay-outs, leaving the building exteriors largely unchanged in size, location, and overall square footage, the applicant can achieve a unit mix identified as better serving the market demand and addressing the construction cost impacts which have limited the ability of the current 74-unit project to achieve its financing needs. Staff has worked with the applicant to determine an approximate BMR unit mix including:
8 Units- Very Low Income (counted toward the 50% density bonus requirements) 3 Units- Low Income (additional to meet the City’s needs for an Alternative under Sec.
17.31.060)
9 Units- Moderate Income (additional to meet the City needs for an Alternative under Sec.
17.31.060)
20 Units-TOTAL PROPOSED DEED RESTRICTED AFFORDABLE UNITS This affordable component represents 41.7% of the property’s’ base zoning allocated to affordable housing, in comparison to the 21.2% of the currently approved project. This change is seen as implementing the General Plan and Land Use Code’s goals of providing mixed income developments and represents a 62% increase in very-low-income units above the current approvals.
As proposed, the Cotati Station approximate affordable/market rate unit mix would be:
8 Very Low income units 3 Low
income units
9 Moderate income units 78
Market rate units
98 total units
If approved, the additional units will provide affordable housing totaling 20.41% of total unit count as deed restricted affordable homes.
The ratio of affordable units to total units will be as follows:
8.2% Very Low Income
3.1% Low Income 9.2%
Moderate Income
This proposed mix of affordable income ranges provides a higher percentage of very low-income units, historically the most difficult to achieve. The applicant has identified that the combination of additional units and changes to the affordability ratios support multiple community benefits including home affordability, buildout of the community parking area, road widening for improved fire access to the existing residential development and a new public park.
Staff finds the proposed unit increases allowing 98-total units to be similar to those granted to the existing 74-unit project, previously approved under the 30% State Density Bonus regulations and has worked with the applicant to ensure the unit mix noted above occurs in a variety of unit types.
Final proposed unit affordability will be determined through the Affordability Agreement review and approval process by the City Council.
V. Planning Considerations and Issues
Land Use Analysis
As identified, the project is being proposed on a 2.43-acre site located within the Santero Way Specific Plan (SWSP). The SWSP was last updated in 2001, ahead of the SMART Train beginning its operations, and envisioned a mixed-use retail/office/residential high-density walkable neighborhood which compliments the character of Cotati. The SWSP area totals approximately
22.45 acres and is divided into several land use categories (Retail Mixed-Use; Office Mixed-Use; Residential). Each of these categories are governed by a unique mix of zoning level development standards (such as parking standards), form-based design requirements, and development limitations based on the document’s environmental analysis. The maximum amount of development envisioned by the plan includes 198 residential units and 233,045 square feet of commercial development (Table 3.4B pg. 3.11 of the SWSP). To-date, 100 residential units have been built in two separate developments on Santero Way.
For reference to the Santero Way Specific Plan, please use this hyperlink:
http://p1cdn4static.civiclive.com/UserFiles/Servers/Server_9669113/File/SanteroWaySpecificPla n.pdf
The project site is located within the “Office Mixed-Use” area of the SWSP which includes the following land-use criteria (which begin on pg. 3.15 of the SWSP):
Maximum of 70% buildings may be residential; 30% Commercial Maximum Floor Area Ratio of 0.65
Primary building facades shall front onto Sanero Way, E. Cotati Ave or a “Transit Plaza” Setbacks- Front-0, Side-none but “70% building frontage required”; Rear-20-feet Height2.5 story maximum but up to 40-feet in height allowed Parking-1 bd rm= 1 space; 2 bd rm= 1.5 spaces; and 3-bd rm= 1.75 spaces Spaces can be shared among commercial and residential land uses Street facing walls shall be lined with windows and articulated; only certain roof lines are permitted; and certain siding and architectural treatments are required.
Staff response: With the exception of the waivers and concessions identified below, staff finds that the proposed design is consistent with the requirements of the SWSP.
Parking
58 one-bedroom units= 58 spaces 33
two-bedroom units= 49.5 spaces 7
three-bedroom units= 12.25 spaces
Commercial 3/1000 sq ft= 18 spaces
Total Spaces Required= 138
Total Spaces Provided= 198
Waivers and Concessions
Under State Density bonus regulations, the applicant can request concessions from development standards and incentives to support construction of a project. A local jurisdiction is compelled to grant concessions unless there is a specific adverse impact such as a fire, life and safety issue, a violation of state or federal law, or if granting the concession would interfere with a historic resource. The concessions requested do not present any of the listed concerns.
The following concessions are requested as relief from requirements of the Santero Way Specific Plan, both of which were previously granted with the approval of the 74-unit Cotati Station project.
1. Reduction of the required ground floor commercial percentage SWSP 3.MX.2 Table 3.6 requires ground floor commercial and a minimum of 30% of the overall building to be commercial. The Cotati Station project is proposing approximately 5.6% ground floor commercial.
2. Reduction of fenestration requirement
SWSP 3.MX.3.2 B4 requires that windows must be 50% of façade. The Cotati Station project design proposing facades that range from 19% to 27% window fenestration.
Also under the state density bonus regulations, if a development standard is considered to physically preclude the development of an affordable housing project, a waiver of that development standard must be granted. The previously approved 74-unit Cotati Station project requested and was granted the following waivers shown in bold text followed by the specific plan requirement:
1. Increase the allowed Floor Area Ratio (FAR) to 0.84 average. (SWSP 3.MX.3.1A Maximum FAR allowed 0.65)
2. Allowance to set the buildings back from the street (varying from 4.5 to 9 feet). (SWSP 3.MX.3.1 Table 3.7 requires 70% of the façade to have zero setbacks)
3. Reduction in the SMART buffer from 16 feet to 8 feet. (SWSP 3.MX.3.1 G Buffers)
4. Reduction in rear yard parking lot setback to 8 feet. (SWSP3.MX.3.1.C2 requires a 10 foot buffer for parking lots.)
5. Increase height allowance to 3 stories throughout the project area (SWSP 3.MX.3.2 A Table 3.8 allows 2.5 stories along Santero Way, with a minimum height of 32-feet and a maximum height of 40-feet)
6. Elimination of requirement for building entry on primary façade (SWSP 3.MX.3.1D 2 Primary entrances shall be on primary façade) The following are newly requested waivers for the 98-units Cotati Station project:
7. Decrease in the minimum setback for accessory structures to 2.33 feet. (LUC 17.42.160 1b Rear setback for accessory structures shall be 5 feet)
8. Decrease in the amount of private open space required. 66 of the 98 units balconies are undersized ranging from 114 to 136 square feet. (LUC 17.42.120 G1 Size of private open space must be 150 square feet for each unit.)
9. City Housing Fund to pay the proposed impact fees for the eleven low and very lowincome units (General Plan Policy H-3.2 Provide incentives for affordable housing development, including density bonuses, expedited processing, relaxation in development standards, and either reduction, delay, or waiver of fees when financially feasible)
10. City to defer impact fees on market rate and moderate-income affordable units until issuance of Certificate of Occupancy. (General Plan Policy H-3.2 in ¶ 11 above).
Analysis
The City has discretion when granting waivers and must be convinced that the waivers requested are needed to achieve the density requested. As identified, Waivers 1- 6 above are carried through from the past project approval. During the previous review of the 74-unit project, staff and the decision makers were convinced of their need and approved the incorporation of these design waivers into the design. The change of unit mix to achieve 98 units with an increased affordable housing component does not alter these findings.
Waivers 7-10 are new and specifically requested to accommodate the increased unit count of the updated project and the increased costs associated with the provision of low- and very lowincome units. Below is a summary of the applicant’s request and justification for these waivers.
Waiver 7. Reducing the trash enclosure setback allows these structures to better fit within the parking lot and circulation design, while also meeting the new sold waste requirements of SB 1381 which requires 3 separate waste receptacles.
Waiver 8. The internal reconfiguration of the units to increase the density caused some of the balcony locations to not fit with the updated floor plan location of the units. Additionally, building code and engineering requirements for external balconies have gotten very stringent in recent years, increasing their costs to construct. These factors have led to the request from the applicant to reduce the size and eliminate some of the balconies from the approved design.
Waiver 9. As has been identified, the relatively high cost of constructing low- and very lowincome units, combined with the reduced rents received from these units, has made it a challenge to finance their construction. In an attempt to cover some of these costs, the applicant has requested the City off-set a portion of their costs by funding the Impact Fees for these units with Affordable Housing Fund monies.
Waiver 10. Finally, the applicant has requested collection of the impact fees for the project itself be deferred from building permit issuance to occupancy/final of the building permit. This would allow more of the construction financing (typically at a higher interest rate) to be spent on the construction costs themselves, with the permanent financing (typically with a lower interest rate) then being utilized to pay the impact fees upon project completion/occupancy.
IV. General Plan Consistency
The following policies of the General Plan are being met with the development of the Cotati Station Apartments.
General Plan Land Use
Policy LU 2.11: Continue to mix residential and commercial uses in appropriate areas, with an emphasis on providing mixed uses in the areas with Specific Plan land use designations.
Policy LU 3.5: In the Specific Plan designations for the Santero Way and downtown areas, encourage residential and office uses in upper-story locations or locations along the periphery of the retail area in order to facilitate active and pedestrian-oriented commercial areas Policy LU 3.12: Require development projects to provide adequate and appropriately located land, easements, or other accommodation for recreational uses, including neighborhood parks, existing and planned trails, and connections to existing or planned trails and other recreational resources as set forth in the Open Space and Circulation Elements.
General Plan Circulation
Policy CI 2.3 Require development projects to construct sidewalks and walkways on and off-site in order to maintain consistency with the City’s Bicycle and Pedestrian Master Plan, and as dictated by the location of transit stops and common pedestrian destinations.
Policy CI 2.6 Create an accessible circulation network that is consistent with guidelines established by the Americans with Disabilities Act (ADA), allowing mobility-impaired users such as the disabled and elderly to safely and effectively travel within and beyond the City.
General Plan Housing
Policy H-2.6 Ensure that the City’s development requirements, including the standards established by the General Plan and Land Use Code, accommodate and provide for viable housing sites that are appropriate for a range of income levels and housing types, including housing to accommodate special needs populations.
Policy H-2.7 Encourage mixed use development, including residential and live/work uses in commercial, office and light industrial areas where the viability of the non-residential activities would not be adversely affected.
Policy H-2.8 Require housing developments to provide housing stock at a range of affordability levels to assist in meeting the City’s housing needs as required by Chapter 17.31 of the Land Use Code.
Policy H-2.12 Encourage housing development on existing infill sites in order to efficiently utilize existing infrastructure.
Policy H-3.1 Ensure that the City’s development standards encourage development of a range of housing types, including multifamily, mixed use, high density residential, second units, and single family units, and incentivize production of lower income housing.
Policy H-3.2 Provide incentives for affordable housing development, including density bonuses, expedited processing, relaxation in development standards, and either reduction, delay or waiver of fees when financially feasible.
Policy H-3.3 Continue to provide density bonuses to eligible projects as required by Government Code section 65915, including projects that meet the minimum amount of total units affordable to very low and low income households or provide units restricted to occupancy for senior households.
Analysis
The project is proposing to build a mixed-use project and has located the ground floor commercial space at the periphery of the development, facing Santero Way and the newly proposed park. The project also proposes to build the park, additional parking spaces to serve it and extend Depot Way as envisioned by the Specific Plan. The pedestrian circulation system proposed for the project is consistent with the General Plan in that it provides a coherent pedestrian circulation system across the development site as well as connects the project to the surrounding neighborhood, open space and public transit (see sheet A0.1).
Staff finds that the proposed increased unit density would provide more affordable housing units generally, increase in the number of very-low-income units and provide more lower cost market rate units (1 and 2 bedroom homes) meeting the City’s Goals and Policies regarding housing. The revised project continues to meet, and in some instances furthers, the General Plan goals and policies referenced above.
DENSITY
As described above, the project is eligible for a Density Bonus of 50% (24 units) in exchange for providing the necessary very low-income units. There are provisions of state law that allow the developer to request and the jurisdiction to grant a density bonus in excess of what is guided by the law. The applicant is requesting an additional 26 units. The City has limited discretion over approving the 50% Bonus Density, but it does have discretion over the approval of the additional 26 units.
To gain staff and decision maker support, the developer agreed to restrict approximately 20.2% of the total units for affordable housing as opposed to market rate units. The proposed project includes approximately 20 affordable units versus the 14 currently approved. Eight of those units will be for very-low income (versus the five currently approved-a 63% increase in the number of very-lowincome units). The overall percentage of the base zoning density allocated to affordable housing increases from 29.2% to 41.7%, a 70% increase in the ratio of affordable housing to zoning density, above the current approved project.
DENSITY BONUS FINDINGS
In order to grant a bonus density, the following findings must be made pursuant to section
17.32.090 of the municipal code:
1. The residential development will be consistent with the general plan, except as provided by this chapter for density bonuses, and other incentives and concessions.
With the concessions allowed through state density bonus including the requested reduction of commercial space, the project is consistent with the General Plan, in that it is providing a mixeduse development with adequate pedestrian connectivity near transit.
2. The approved number of dwellings can be accommodated by existing and planned infrastructure capacities.
Through the implementation of the Public Works and the Rancho Adobe Fire District Conditions of Approval, the number of units proposed will be accommodated by the infrastructure.
3. Adequate evidence exists to indicate that the project will provide affordable housing in a manner consistent with the purpose and intent of this chapter; and To meet the conditions of approval and receive a building permit, the applicant will be required to execute an Affordable Housing Agreement which will detail the unit types and affordability levels for the project as well as a monitoring and reporting requirement. The agreement will be reviewed by the City Attorney.
4. There are sufficient provisions to guarantee that the units will remain affordable for the required time period.
The required housing affordability agreement described above is required to be in effect for a period of 55 years. A building permit will not be issued without this agreement in place.
SANTERO WAY SPECIFIC PLAN
Parking
Santero Way Specific Plan Objective C-5
Reduce the total number of required parking spaces within the neighborhood by allowing development to count adjacent on street parking towards their parking requirement and by establishing parking requirements that reflect the potential for shared parking between uses.
With the previous application, and all other previously approved development along Santero Way parking was one of the primary issues discussed. The proposed parking for the Cotati Station Apartments exceeds the parking requirements of the Santero Way Specific Plan (SWSP). With the development proposed, the SWSP calls for 138 spaces.
Specific Plan parking requirements are as follows:
Santero Way Specific Plan Parking Standards
Quan Per Unit type Spaces required
(each)
Total Spaces needed
58- 1-bedroom units 1.0 spaces per unit 58
33- 2-bedroom units 1.5 spaces per unit 50
7 - 3-bedroom units 1.75 spaces per unit 12
5540 SF Commercial/Office 3 spaces per 1,000 18*
Total Required 138
*These 18 spaces will be available during off hours for evening and night use.
In addition to the project meeting the parking requirement, it is worth noting that the parking provided to serve the 5,500 square feet of commercial space will provide additional “shared” parking opportunities available after the businesses they serve are closed. By incorporating some commercial space into the development, the applicant is building 18 additional spaces which will only be in use by commercial customers during business hours.
Additional City Parking
In addition to the parking required to serve the project, the developer will be constructing 43 additional parking spaces to serve the future uses, existing residents and visitors as well as a new community park. Altogether, the Cotati Station Apartment project will construct 181 new parking spaces (138 to serve the private development, 43 new spaces available to the public and reconfiguring 17 existing spaces currently on Santero Way = 198 total), however 32 existing (formal and informal) street spaces will be replaced by 44 new street spaces. In operation it is anticipated that the residents and employees of the development will park in the on-site lot and along Depot Way, leaving the spaces along Santero Way and the Community Parking Area open to the public.
Project Parking Spaces
On-site 106
Re-configured parking along Santero Way 24
Net New On-Street (Santero Way) 8
Project Total 138
Community Parking Spaces
On-Street (Depot Way) 11
Community Parking Area 32
Total New Parking Built with the Development 181
For comparison purposes, recent changes in State law limit the City’s ability to require additional parking for Density Bonus projects. These changes provide that, upon a developer’s request, a locality must utilize state-mandated amended parking ratios (inclusive of handicapped and guest parking) which decrease the parking required for two and three bedroom units for qualifying projects, as shown in the table below.
Density Bonus Maximum Parking Requirements
Rooms Number of spaces required
Studio / 1 bedroom 1 space
2 bedroom / 3 bedroom 2 space → 1.5 space
4 bedroom 2.5 space
The applicant has not requested to utilize these parking amendments as they are essentially the same as the SWSP requirements. However, they do have the right to do so and if requested, the required parking for the project would be further reduced by 2 spaces.
Open Space
There are several policies in the Santero Way Specific and General Plan which address parks and open space.
General Plan Policy OS 2.5
Work aggressively to achieve and maintain a park standard of a minimum of 1 acre per 200 residents in order to meet the city’s recreation needs.
General Plan Policy OS 1.5
Recognize urban open space as essential to maintaining a high quality of life within city limits.
Santero Way Specific Plan Objective UPS-2
Provide public parks and plazas to meet city standards and to provide passive and active recreational opportunities for the neighborhood’s residents and workers.
The revised Cotati Station Apartments application also proposes to construct an (approximately)
0.5 acre public park adjacent to the project site. However, the project does propose to reduce the amount of private open space being provided for individual units. Specifically, several the proposed units would not have any private decks or balconies and some of the remaining decks are being proposed as smaller than the previously approved design. See attached summary of the proposed reduced dimensions for more details. The average amount of public open space is increasing from the SWSP adopted 117 square feet to 131 square feet.
Below is a summary of the amount of open space to be provided by this project:
Central Plaza 5,500 square feet (approximately)
Private Balconies 4,096 square feet
Public Park 21,344 square feet (.49 acres)
While there is a difference between the adopted SWSP open space and the General Plan open space targets Policy OS 2.5 (117 square feet in the SWSP versus 200 square feet in the General Plan), the Santero Way Environmental Impact Report 3.3-4 found that the amount of parkland and required private open space envisioned in the SWSP was sufficient and did not require inlieu fees to make-up the difference between 117 and 200 square feet.
Staff feels the density and design of the Cotati Station Apartments is appropriate and complies with the Santero Way Specific Plan and the private and public open space proposed is appropriate for this transit-oriented development.
Park Design
Santero Way Specific Plan Objective C -1
Provide a network of streets, accessways, parking, public parks and plazas, and publicly accessible walkways and courtyards that allow for all modes of transportation with a focus on supporting pedestrian activity throughout the neighborhood.
The Santero Way Specific Plan calls for central gathering place within the plan area. The 0.49 acre parcel was designated as the park parcel because it represented the place where the area’s mixed use, residential and commercial area came together (SWSP 3.P2.2 Village Green). The applicant purchased the property from its previous owner for the purpose of delivering needed open space to the Plan area. Staff received feedback from the Design Review Committee and the public on design and programming which ultimately resulted in the parking being designed as largely passive, with areas for seating, relaxing and waiting for public transit. With the current project, the developer will retain ownership of the park, but will convey a public use and access easement over the land so that the park is open to the public in perpetuity. The Santero Way Specific Plan calls for several design features for the public open space, including:
o Multi-purpose lawn
o Hard surface areas
o Monument, public art, and/or a water feature
o Formal or monumental plantings
o Outdoor seating
The applicant has received final design approval for the landscape architecture and public park, which includes a series of walkways connecting the park to the private development, sidewalks, and transit. Also approved are installation of two bio-swales for off-site drainage of the development, parking area and Santero Way.
VI. Summary and Staff Recommendation
It is recommended by the Community Development Department and the Planning Commission that the City Council approve the requested Design Review and Density Bonus entitlements allowing the Cotati Station Apartments to increase the total of 98 units of which approximately 20 shall be restricted as affordable housing at the affordability levels described in the Density Bonus paragraph above for a period of 55 years.
Financial Considerations
The primary financial considerations for the project request are the deferral of collection of impact fees to “occupancy” of the project rather than upon issuance of the building permit and the request for subsidy of the projects’ impact fees for the Very Low- and Low-income units, with funding from the City’s Affordable Housing Fund.
Fee Deferral-Development projects generate broad impacts to the community that the City collects “impact fees” to utilize to mitigate these impacts. These include traffic impact fees, park impact fees and affordable housing impact fees, among others. Because a project has the right to construct the elements of the project that will generate these impacts, these fees are typically collected upon issuance of the building permit. Given this, the funds to pay these fees are often bundled as an element of the construction financing, which is at a relatively high interest rate. Deferral of the collection of these fees until after the constructing has occurred (but before occupancy is granted), allows them to be bundled into the more permanent “mortgage” financing, and therefore benefit from both a lower financing cost as well as a longer amortization period for the repayment of these funds.
Fee Subsidy-The applicant is also requesting that the City Council commit Affordable Housing Funds to the project in the form of covering the cost of the Impact Fees of the Very Low- and LowIncome units included within the project. The developer has indicated that these units result in a direct cost to the value of the project, which combined with the amount of public infrastructure being constructed, the developer has indicated affect its financial viability.
Any other financial considerations that arise from the negotiation of the Affordable Housing Agreement will be presented for City Council consideration when that agreement is brought before the City Council for consideration and approval.
Environmental Issues
The Cotati Station Apartment project is found to be consistent with the Santero Way Specific Plan Environmental Impact Report and further, to meet the requirements for a residential “In-Fill Exemption” from CEQA under section 15195, thus no further review is required. Specifically, the increase of the project from 74 to 98 residential units is within the number of residential homes identified as consistent the SWSP (which assumed 198 total residential units would be built, along with 245,000 square feet of commercial uses and 100,000 square feet of open space). Further, the applicant analyzed the potential for the project to create Vibration, Noise, Air Quality and Traffic impacts under recent changes in the State law, using the consultants who originally undertook this analysis previously; Illingworth & Rodkin, and W-Trans, respectively. Those updated reports found that the increase in residential units would not create significant new impacts and no new mitigation measures are required. These documents are attached to this report.
Attachments:
Project Description Cotati Station PC Submittal Overview-4.25.22 (DOCX) COTATI STATION_DESIGN REVIEW SUBMITTAL Plans (PDF)
Cotati Station - Locations of Balcony Revisions_Elevations (PDF) Cotati Station Exemption 4-25-22 (DOCX)
Applicant IMPACT FEE DEFERRAL REQUEST (PDF)
COTATI STATION- AFFORDABLE Units Applicant Proposal (PDF) Reso PC 2022-5_Preliminary Design Review for Cotati Station Apartments_signed (PDF)