Agenda Report
Fullerton City Council
MEETING DATE: JUNE 20, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: SUNAYANA THOMAS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT PREPARED BY: SUNAYANA THOMAS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT BRADLEY J. MISNER, AICP, CONTRACT PLANNER
SUBJECT: THE TRACKS AT FULLERTON STATION DEVELOPMENT
SUMMARY
The Tracks at Fullerton Station project proposes redeveloping 1.66-acres previously owned by the City, for a mixed-use development with residential units, hotel and restaurant space along with 375 parking spaces, including 165 spaces for public use, located at 200 - 214 East Santa Fe Avenue.
RECOMMENDATION
Adopt the following resolutions:
RESOLUTION NO. 2023-XXX - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A MAJOR SITE PLAN TO ALLOW REDEVELOPMENT OF 1.66 ACRES (2 LOTS; ASSESSOR PARCEL NUMBER 033-030-18) WITH A NEW MIXED-USE, SIX-STORY, 206,000 SQUARE-FOOT BUILDING AND CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) FINDINGS UNDER STATE CEQA GUIDELINES SECTION 15162 RESOLUTION NO. 2023-XXX - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT AUTHORIZING ESTABLISHMENT OF A HOTEL WITH A 3,750 SQUARE-FOOT RESTAURANT LOCATED AT THE SOUTHEAST CORNER OF POMONA AVENUE AND SANTA FE AVENUE – APN 033-030-18 AND CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) FINDINGS UNDER STATE CEQA GUIDELINES SECTION 15162 RESOLUTION NO. 2023-XXX - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A TENTATIVE PARCEL MAP TPM 2023-128 TO CREATE A MIXED-USE RESIDENTIAL AND HOTEL DEVELOPMENT WITH A SUBDIVISION OF THE PROPERTY INTO THREE PARCELS, WITH TWO LOTS (1.66 ACRES) OWNED BY THE PROJECT APPLICANT TO CREATE THE DEVELOPMENT SITE, WHILE THE THIRD LOT WILL PRESERVE THE TRAIN STATION AND TRAIN PLATFORM AND APPROVE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) FINDINGS UNDER STATE GUIDELINES SECTION 15162
CITY MANAGER REMARKS
The City Manager recommends approval. If the project is approved and the Hotel is built, it will create future TOT revenue for the City. The Planning Commission recommended approval on a 5-0 vote and recommended additional City Council considerations on a 3-2 vote.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
The applicant pays all City costs associated with application review, processing, environmental analysis, plan check, permitting and inspections. Additionally, the applicant will pay all impact fees related to parks, schools, utilities and others as well as bonds related to off-site improvements or mitigation measures identified in the Mitigated Negative Declaration.
DISCUSSION
Background
The City entered into an Exclusive Negotiation Agreement (ENA) with the Developer, West Park Investments, LLC and Parkwest Contractors on December 4, 2018 to develop a portion of a City-owned public parking lot at the southwest corner of East Santa Fe and South Pomona Avenues into an upscale boutique hotel. The City extended the ENA in August 2021 and modified, based on community feedback, to include a residential use component to the project. The revised project proposed to construct 140 residential units, 124 room hotel, 3,570 square-feet of retail, 3,570 square-foot restaurant and 412 parking stalls (city, residential and hotel parking). City Council approved a Disposition and Development Agreement (DDA) and Initial Study / Mitigated Negative Declaration (IS / MND) on December 20, 2022 to allow for sale of 1.697 acres of land to West Park and TA Partners LLC with certain performance provisions including, but not limited to, obtaining all entitlements for the proposed project for approval within 120 to 180 days, provide 12% of affordable units between 60% - 120% AMI and 164 parking spaces available to the public.
The applicants have made minor revisions and corrections to the plan since the December 20, 2022 City Council action concerning the DDA, based on conditions set forth by City Council, staff comments and public and stakeholder feedback. Revisions to the original plan include:
Additional residential unit with an increase in affordable housing units from 12 to 13 percent (13 units) Potential decrease in hotel rooms from 124 to 116
Adjustment in affordability level from low-income level (60%-120% AMI) to very low-income (40%-75% AMI) level for 13 affordable housing units Parking space reductions from 412 stalls to 375 stalls, as allowed through the State Density Bonus Law Further improvements for circulation, parking and bus routing to the parking lot in front of the train station.
Staff considers these minor revisions which do not mandate any reconsideration of the Mitigated Negative Declaration completed and approved on December 20, 2022 pursuant to State California Environmental Quality Act (CEQA) Guidelines Section 15162, which provides for when it requires additional environmental review, because the Major Site Plan does not propose any substantial changes to the project that require major revisions to the previously adopted MND as a result of new significant environmental effects, the project has no substantial changes with respect to the circumstances under which the project will occur and no new information of substantial importance shows that the project will have new significant impacts on the environment.
Planning Commission Action
The Planning Commission reviewed and discussed the proposed project on April 26, 2023 and voted unanimously to recommend City Council approve the Major Site Plan, the Conditional Use Permit and the Tentative Parcel Map.
The Planning Commission discussed and voted 3 - 2 to recommend City Council consider additional recommendations including requiring the project applicant to include or fund public restrooms and a visitor center and to encourage the applicant to consider the use of union labor. Planning staff do not believe this development should have sole responsibility for construction of public improvements (public restrooms and a visitor center). The overall vision for the Fullerton Transportation Center identifies these improvements and one would assume development occurring over time would fund and construct the improvements as part of the overall build out of the plan. However, the plan lacks clarity as to how to fund and construct the improvements and whether the City would base these improvements on a “fair share” contribution process or whether it would implement an overall infrastructure funding fee. The DDA specified that the applicant shall make a good faith effort to communicate with local union representatives, concerning the Planning Commission recommendation to use union labor. The applicant has indicated those discussions are ongoing.
General Plan Designation
The property, located within the Fullerton Transportation Center, has a General Plan designation as Fullerton Transportation Center Specific Plan. The FTC Specific Plan envisioned a sustainable transit-oriented neighborhood near the Santa Fe Train Depot and focused growth and development around the train depot to link land use and transit by promoting opportunities to commute to a variety of major employment and leisure destinations throughout Southern California. This type of development would reduce automobile dependency and promote sustainability through reduction of greenhouse gas emissions and traffic congestion by promoting living, working and commerce in proximity to multi-modal transit options. The following lists the main goals of the FTC Specific Plan beyond this overall vision for the FTC Specific Plan:
1. Create buildings, public spaces, streets and infrastructure that contribute to a sustainable built environment.
2. Create a mixed-use neighborhood that contributes to a sustainable Downtown economy.
3. Create a mixed-use and transit-oriented neighborhood that contributes to a sustainable natural environment.
4. Develop and promote a framework for a sustainable community lifestyle. The Specific Plan encourages inclusion of affordable housing in proximity to public transit and new employment opportunities intended to accommodate a portion of the City’s Regional Housing Needs Assessment (RHNA) housing obligation The proposed project meets the FTC intent and objectives with proposed uses and site design consistent with the FTC vision and will create a sustainable and transit-oriented development. Review of the Major Site Plan, Conditional Use Permit and Tentative Parcel Map applications find the project meets the Fullerton Municipal Code (FMC), Specific Plan and Subdivision Map Act regulations, standards and findings to merit approval. The following analyzes each of the requested applications:
Major Site Plan (ZON-2022-0111)
Project Site
The subject site is an approximately two-acre parcel, located at the corner of Pomona and East Santa Fe Avenues within the Fullerton Transportation Center Specific Plan area and directly adjacent to the Fullerton Transportation Center. The subject site has a 164-space surface level public parking lot for long-term parking for Amtrak and Metrolink riders. A Tentative Parcel Map (Attachment 7) requests to subdivide the property into three parcels, with two lots (1.66 acres) owned by the project applicant for development with the third lot retained by the City to preserve and enhance the train station and train platform. Pomona and Santa Fe Avenues provide primary site access as shown on the following proposed ground floor plan.
Mixed-Use Project
The mixed-use building proposes six stories and 85-feet in height. The overall size of the building totals 206,000 square feet and would include the 116 to 124 room hotel with a 1,600 square foot lobby, a 3,750 square-foot restaurant, 141 residential units and a combination parking structure with 379 parking spaces (165 public, 90 hotel and 124 residential). The entrance to both the hotel lobby and restaurant would orient to Pomona Avenue. The front facing façade of the building would face west and front the access drive of the Transportation Center drive and parking area in front of the Transportation Center Station. The second floor would have associated hotel amenities such as interior conference and meeting space with up to three flexible meeting rooms, dining and kitchen area, fitness area, an outdoor open space deck area with seating and landscaping and an outdoor spa, in addition to the ground floor hotel lobby and restaurant. Floors three through six would house the hotel rooms. Hotel patrons would also have access to a proposed roof deck area. The following shows an image of the proposed project. Staff has attached full architectural plans to this report.
Residential Density and State Density Bonus Law
The maximum density is 60 dwelling units per acre of land, which allows a base density of 99 units for this site based on the 1.66-acre size. The applicant has requested a density bonus pursuant to Government Code Section 65915, State Density Bonus Law (SDBL), by providing 13% (13 units) of the base density for very low-income qualified households. Incorporating 13 very low-income housing units into the residential project qualifies the development for a 42.5% density bonus above and beyond the 99 base density units which results in 141 total units allowable under the SDBL. These units, including the 13 very low-income units, will count towards the City’s Regional Housing Needs Allocation obligations for the 6th Cycle Housing Element. The applicant would develop the proposed 141 apartment units on the eastern parcel (Parcel 1) with 36 studio units, 96 one-bedroom units and nine two-bedroom units, for a total of 141 units with 13 units restricted to very low-income households for a period of no less than 55 years. This will require an affordable housing agreement with the City prior to issuing building permits.
The project also qualifies under the SDBL for a reduced parking ratio of .5 spaces per unit which equals a total 71 spaces. However, the applicant would provide 124 spaces and dedicate parking spaces for electric vehicle (EV) and EV ready and capable spaces: seven with EV chargers, 13 spaces EV capable and 31 EV ready. The project would provide a separate entrance and exit for automobiles from Santa Fe Avenue to the on-site residential parking spaces. The City would require a parking management plan as a condition of approval to ensure efficient use of residential parking spaces, such as unbundling the parking spaces from the residential unit and other Transportation Demand Management (TDM) measures including transit incentives and shared parking with the hotel spaces.
Development Standards
The FTC Specific Plan, originally adopted in 2010 and amended in 2015, sets forth the vision and development guidelines for the area. The specific plan regulates project density, setbacks, height, parking, uses and other site development regulations pursuant to the Building Regulating Plan (Mixed-Use B), Specific Plan Section 4.4. The following Table 1 - Development Standards, provides a compliance chart for the specific standards.
Table 1 - Development Standards
Development
Standard
FTC Specific Plan
Proposed
Consistent
Setbacks
Setbacks are not required. Page 4-94
20-foot setback between southerly parcel line (train platform) and hotel lobby Yes
Height
6 stories max, 80 feet
85 feet to parapet*
Yes* (Density Bonus Law waiver)
Residential Density
Minimum 20 units per acre
Maximum 60 units per acre
60 units per acre base density
Yes
Mixed-Use Building Lot Standards
Minimum width 25 feet
Minimum depth 90 feet
Lot dimensions roughly 200-210 wide to 145-165 depth
Yes
Mixed-Use Building Placement
Front Façade
Side façade
Front façade incorporates a positive relationship to Pomona Avenue through use of outdoor spaces, dining, building entrances, landscaping and plaza features Side façade is designed to provide building elevation that screens parking structure, provides entrances, and a positive relationship to the street Yes
Sustainable Design Standards
Project shall achieve LEED equivalency according to the US Green Building Council Rating System Project is conditioned to prepare a Final LEED Checklist that documents how the project will achieve Yes, with conditions incorporated
Common Open Space
50 square feet per unit:
7,050 square feet
6,850 square feet residential courtyard on 2nd floor deck Approximately 2,000 square foot ground level Paseo on south side of the lobby Over 8,850 square feet
Yes
Private Outdoor Space
Not Required
N/A
Yes
Residential Parking
Studio Units: .5 stalls/unit
1 BR: .5 stalls/unit
2 BR: .5 stalls/unit
Guest stalls not required
141 units/.5 = 71 stalls
124 provided
Yes (subject to parking management plan)
Commercial Parking
116 hotel rooms, ancillary spaces do not require additional parking 90 provided
Yes* (subject to shared parking and parking management plan) Public Parking
Replacement Ratio of 1:1
164 space existing
165 public parking spaces on the ground level parking structure will be dedicated for public use only Yes
Mixed-Use Building Parking Location
Ensure above ground parking structures are screened from public view: 20 feet of building depth between parking level and street 20 feet of depth provided along Santa Fe and Pomona Avenues Yes
Mixed-Use Building Frontage Option C
Floor elevation
10 feet floor to floor height
25% upper floors glazing
Ground floor entrances
Project implements project Frontage design elements
Yes
Frontage Elements
Enhance the design of buildings by allowing a variety of frontage elements such as balconies, bay windows, awnings, window shades, roof projections, planters Project implements Frontage design elements
Yes
Traffic and Circulation
Circulation of vehicles, transit vehicles, pedestrians and bicyclists throughout the Specific Plan area comprise major component of the proposed project pursuant to Section 3.3. The Specific Plan anticipated certain roadway configurations as development occurs within the district. This project incorporates improvements such as wider sidewalks (10’4” as part of the project versus the existing six-foot sidewalk), pavement renewal and/or reconstruction, bus pad and layover zone construction, ADA improvements, sharrow bike routes, street trees, new traffic signal at the intersection of Santa Fe Avenue and Lemon Street and more as outlined in the plans and staff conditions. The plan re quires final roadway design review and approval from the Director of Community and Economic Development and the Director of Public Works if the site has specific constraints or unforeseen factors.
Train Depot Parking Lot and Circulation
The subject site sits directly adjacent to both the Train Depot and the Orange County Transportation Authority (OCTA) Fullerton Transportation Center which serves local bus Routes 26, 43, 47, 143, 543 and Community Bus 143. The proposed project includes several “off-site” improvements to improve parking and circulation including streets, sidewalks, crosswalks, parking, bus stop relocation and general circulation. The project would improve the existing parking lot directly in front of the Train Depot at applicant expense estimated at more than $1,000,000. The improvements include restriping and orienting existing parking spaces and increasing by two spaces from 38 to 40. The project would construct a dedicated and protected two-lane circulation approach including new dedicated loading zone and ride-share app-based zone, new lighting fixtures, improved sidewalks and crosswalks, relocated bus zone and new layover zone along Santa Fe Avenue, improved turning radius and entrance into the lot and other improvements such as clearer paths of travel, drainage and other infrastructure. Relocating the new bus stop requires some of these improvements to provide adequate circulation. However, the applicant has agreed to improve the parking lot holistically to serve both the project and other public benefits as outlined in the FTC Specific Plan area.
Staff conducted a Traffic Study to determine any impacts to the service level for certain intersections and street segments. This study determined that the intersection of Lemon Street and Santa Fe Avenue would result in reduction of service level with the project development and would require a traffic light installation at Lemon Street and Santa Fe Avenue. The project conditions require the applicant to fully fund and implement the new traffic signal to address degradation and ensure the project complies with transportation policies and goals in the Fullerton General Plan. Additionally, OCTA requires the new traffic signal to reroute future transit service to access the new bus stop and layover zones on Santa Fe Avenue. This substantial improvement will ease traffic conditions and circulation throughout the plan area and, like the depot parking lot improvements, the applicant has agreed to this condition of approval.
Architecture
The mixed-use development implements a mix of transitional modern architectural style with varying color and material schemes. The hotel would have a contemporary design with changes in wall planes, a mix of modern building materials such as wood siding, brick veneer and stucco. The residential portion design differentiates from the hotel and incorporates architectural features such as arched windows, colors, brick materials and window patterns to relate to the historic buildings in the vicinity and downtown. The project accomplishes additional architectural distinctions through smooth stucco walls and sidings, recessed windows, window boxes to frame sections of the building façade to provide texture, varying roof heights and building corner treatments (a building pop-up and signage for the hotel and tower element for the residential building). Further, the ground floor provides changes in plane, openings, material changes, arched window treatments along the residential portion of Santa Fe Avenue and a corner restaurant and pedestrian oriented window and openings, including an outdoor dining area.
The project would have substantial breaks in the building plane and building step backs along the railway (south) elevation to accommodate both the hotel and residential amenity spaces located above the parking structure. The amenity areas provide podium-level decks that open to the sky. The building facades for portions of both the hotel and residential components that extend closest to the railway have larger wall planes with proposed murals reflecting Fullerton’s history related to transportation themes.
Outdoor Dining
The restaurant outdoor dining area design includes a structure covering the outdoor dining. This architectural feature provides a covering over the dining area and a pronounced identifiable feature to highlight the corner café. This structure, adorned with columns and brick veneer finish, would project into the public right-of-way. Staff advised the applicant that they would either need to obtain approval of an abandonment of this area and then acquire it as private property for the structure or, alternatively, they would need to remove this structure and apply for an encroachment permit to use the public right-of-way. This would likely involve a design including awnings and movable tables and chairs, as seen in Attachment 9. The applicant has indicated their desire to seek an abandonment of the land to acquire it as private property but understands the process requires a public hearing and Planning Commission and City Council approval. Therefore, the applicant predicates the sign request contingent upon approval of an abandonment and conditioned accordingly. The applicant has provided an alternative design for City Council consideration if the City does not grant an abandonment and assuming the applicant obtains an encroachment permit.
Landscaping
The project would provide landscaping primarily by planting street trees within City approved tree wells along the Santa Fe Avenue elevation of the building and within landscape strips surrounding the proposed reconfiguration of the Train Depot parking lot. The City requires Gingko biloba 'Autumn Gold' trees spaced at 25’ maximum on center for the south side of Santa Fe Avenue, however, the applicant may modify this spacing at required curb cuts for driveway access. All landscaping proposed will require a low maintenance, water efficient landscape pursuant to the City’s Landscape Ordinance No. 3226 (FMC Chapter 15.50). The City added a condition of approval requiring all final landscape plans reviewed and approved prior to issuance of a building permit.
The applicant proposes landscaping for the Paseo area leading from the front of the hotel to the Train Museum. This access way is approximately 75 feet in length by 20 feet in width and serves to buffer between the train platform and the hotel, meet building code requirements for separation from a historic structure, allow for greater light and air between the hotel and future use of the train platform and act as common open space for the project. The access way design has planters, benches, wayfinding signage and a patterned concrete walkway design. Attachment 8 provides images of this space. These plans are conceptual and final designs require Director of Community and Economic Development review and approval prior to issuance of any permits and the City has added a condition of approval.
Wayfinding and Lighting
Another critical aspect of the project will ensure the proper placement of wayfinding signage and lighting fixtures designed and installed throughout the project site. These details will occur as deferred submittal and subject to Director of Community and Economic Development review and approval.
The project, as proposed and conditioned, complies with the relevant development standards and design criteria as detailed in the findings contained in the resolution approving the Major Site Plan.
Conditional Use Permit (ZON-2023-0031)
The FTC Specific Plan permits the proposed hotel with approval of a Conditional Use Permit (CUP). Fullerton Municipal Code Chapter 15.70 governs the process for the review and approval of conditional uses and indicates the following purpose of a Conditional Use Permit:
1. To assure maintenance of the degree of compatibility with respect to the particular use on the site and in consideration of other existing and potential uses within the general area in which such proposed use will locate.
2. Recognize and compensate for variations and degree of technological advancements in processes and equipment as related to the factors of noise, smoke, dust, fumes, vibration, odors and hazards.
The FTC Specific Plan contemplates establishment of a new hotel in the planning area as set forth in Chapter 3 Section 3.2.2 (Proposed Land Use Program) and Section 3.2.4 (Buildout Potential) The City developed the FTC Specific Plan to give property owners flexibility to develop properties with a mix of retail, office, residential and other uses depending on market demand. The plan contemplated two scenarios - one with a mix of high office and low residential and another with high residential and low office mix. Both scenarios accounted for a 120-room hotel. This case, and as contemplated in the Disposition and Development Agreement (DDA) for this property, plans for a 124-room hotel. The applicant seeks the flexibility to build a hotel with 116 to 124 rooms, depending on the specific needs of the hotel operator relating to size and layout of rooms. Staff recommends City Council approve the CUP application because the FTC specifically envisioned hotel use and the economic benefits from this type of use. A hotel use in this area will help enliven the area, provide much needed lodging options directly adjacent to the multi-modal Transportation Center, will help make positive economic impacts in the Fullerton downtown and would be compatible with existing and future uses in the immediate vicinity. Further, conditions of approval for the use would ensure no negative factors from the use related to noise, smoke, dust, fumes, vibration, odors or hazards.
The Conditional Use Permit meets the City requirements with respect to a hotel use as detailed in the resolution approving the Conditional Use Permit.
Tentative Parcel Map (SUB-2023-0002 / TPM 2023-128)
The subject site is approximately two acres. The City sold 1.66 acres consisting of a surface parking lot with 164 public parking spaces for long-term parking for Amtrak and Metrolink riders to the project applicant, subject to the Disposition and Development Agreement. Attachment 7 shows a requested parcel map to subdivide the property into three parcels, with two lots (1.66 acres) owned by the project applicant to create the development site, while the City would retain and preserve the third lot for the train station and train platform.
The Tentative Tract Map meets City and State subdivision requirements as detailed in the resolution approving the Tentative Tract Map.
Environmental Review
The City, as Lead Agency, prepared and adopted a Draft Initial Study / Mitigated Negative Declaration (IS / MND) on December 20, 2022 to identify the potential environmental impacts associated with the construction and implementation of the project in conformance with the provisions of the California Environmental Quality Act (CEQA) and CEQA Guidelines. The IS / MND concluded that the project would have a less than significant impact on the environment with the implementation of identified mitigation measures. The applicant has made slight changes to the original project description through the development review process of the Major Site Plan, Conditional Use Permit and Tentative Parcel Map. These revisions do not constitute a substantial revision of the negative declaration and do not result in any new or unavoidable significant effects. The proposed project revisions will not result in any new project impacts. Furthermore, the City will incorporate mitigation measures applicable to the project pursuant to the Program Environmental Impact Report (PEIR) adopted for the Fullerton Transportation Center Specific Plan as conditions of approval.
Attachments:
Attachment 1 – PowerPoint Presentation
Attachment 2 – City Council Resolution No. 2023-XXX - Major Site Plan Attachment 3 – City Council Resolution No. 2023-XXX - Conditional Use Permit Attachment 4 – City Council Resolution No. 2023-XXX - Tentative Parcel Map Attachment 5 – Engineering Conditions of Approval
Attachment 6 – Mitigation Monitoring Program Report
Attachment 7 – Hearing Notice and Notification Map
Attachment 8 – Project Plans, Renderings, Elevations and Civil Plans Attachment 9 – Tentative Parcel Map
Attachment 10 – Access Way Renderings
Attachment 11 – Alternative Outdoor Dining Area Design
Attachment 12 – Traffic Study
Attachment 13 – Planning Commission Meeting Minutes dated April 26, 2023 Attachment 14 – Design Evolution
cc: City Manager Eric J. Levitt
Tracks at Fullerton Station Development
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