DATE: April 28, 2022
TO: Council Economic Development Committee
FROM: Assistant City Manager/Director of Development Services SUBJECT: Preliminary Concept Review - MWT Architect, PC Drive Through Requiring a Zoning Text Amendment and Modification of Approved Site Plan Review for Home2Suites at 22091 Hesperian Boulevard
RECOMMENDATION
That the Council Economic Development Committee (CEDC) reviews and provides feedback related to allowing the establishment of drive through restaurants in the AT-C (Air Terminal - Commercial) District and a reduction in the distances between drive-throughs in conjunction with the modification of the approved Home2Suites development.
SUMMARY
In 2019, the City approved a Site Plan Review with a Variance for building height to allow the development of a proposed a four-story, 131-room Home2Suites hotel and a multi-tenant, 5,400 square-foot commercial building at 22091 Hesperian Boulevard. Special Variance findings were made to allow the increase in height for the hotel to accommodate the proposed commercial building and a plaza between the two structures. In conjunction with the request for a Zoning Text Amendment, the applicant would like to shrink the approved 5,400 square foot multi-tenant commercial building to approximately 2,500 square feet to accommodate a Starbucks with a drive-through.
The applicant is considering submittal of a Zoning Text Amendment to allow drive-throughs in the AT-C (Air Terminal - Commercial) District where that use is currently prohibited. The proposed Zoning Text Amendment would affect approximately 26.1 acres (a total of eleven parcels) mainly located along the eastern and southern perimeter of Airport Executive Airport property. In addition, the Drive-Through regulations would have to be amended to allow drive-through restaurants to be closer than one-half mile to each other because there is an existing Burger King drive-through restaurant located less than one-half mile from the project site. Modification of the drive-through minimum distance regulations would apply city-wide.
The project proponent, MWT Architect, PC (MWT) is seeking CEDC feedback on the proposed Zoning Text Amendment, the modification to minimum distance allowances between drive-through restaurants, and to modify the approved development plan. The purpose of this review is to introduce the preliminary concept and policy issues to the CEDC and obtain feedback on the concept and policy issues related to drive-through restaurants. The project proponent will use this information to guide the next steps for their project.
BACKGROUND
In January of 2019, the City conditionally approved Site Plan Review Application No. 201803495 to develop a new four-story, 131-room Home2Suites hotel by Hilton and a 5,400 square-foot multi-tenant commercial building on vacant City-owned property located on the southeast portion of the Hayward Executive Airport located at 22005 Skywest Drive in the AT-C District (Attachment II). The site fronts Skywest Drive and Hesperian Boulevard to the east, and W. Winton Avenue to the South (Attachment IV).
Per Hayward Municipal Code (HMC) Section 0-1.1985(o), the project required a variance to allow the hotel to exceed 40 feet in height. Staff made special findings that the increase in height of the hotel would achieve a more beneficial site layout because it would allow for the development of the commercial building, plaza and parking for both uses, which could not be achieved under the applicable regulations (Attachment III). The proposed site layout and construction of the commercial building and plaza was integral to the approval of the Home2Suites hotel, as proposed.
In July of 2018, Council approved a Zoning Text Amendment related to drive-through establishments in the City of Hayward to allow more flexibility from the prohibition of having one or more of these establishments (either restaurant or coffee/espresso shop) within one-half mile of each other, provided that they be located within one-half mile of I-880 or State Route 92, that the proposed drive-through would not conflict with pedestrian or bicycle circulation and that the site be located a minimum distance from residential uses.
DISCUSSION
Conceptual Proposal
In April of 2022, MWT submitted a conceptual review for a proposal to open an approximately 2,500 square-foot drive-through Starbucks coffee-shop in the approved commercial building, which would require approval of Zoning Text amendments to the AT-C (Air Terminal – Commercial) District to allow such uses in the AT-C District, and to the Drive-Through Regulations to allow these uses to be closer than one-half mile to each other, as well as modification of the approved development plan. According to the applicant, there are currently three Starbucks coffee shops along Hesperian Boulevard in the vicinity of the Hayward Executive Airport. The proposed drive-through coffee-shop would be located about one-half mile from two of these other coffee shops, and the applicant seeks to fill the gap and meet a perceived service demand for the area (Attachment V).
HMC Section 10-1.1952 specifically prohibits drive-through uses in the AT-C District; thus the proponent is seeking to request a Zoning Text Amendment application to allow drive-through facilities in the AT-C District. The proposed drive-through would be located within 0.4-miles of an existing Burger King located at 950 W A Street.
Pursuant to HMC Section 10-1.1045(j)(5), drive-through restaurants are prohibited within a one-half mile radius of one another. The proposed drive-through facility is less than one-half mile from an existing Burger King drive-through restaurant. Establishing this use in this location would require amending the drive-through regulations to eliminate the minimum distances or otherwise modifying the adopted drive-through standards which impact drive-through uses city-wide.
Further, the applicant proposes to shrink the approved 5,400-square-foot multi-tenant commercial building to 2,500 square feet in order to lease it to Starbucks.
Policy Discussion Topics:
Modifying the Drive-through Regulations in the AT-C District:
As noted above, the AT-C District regulations do not allow drive-through restaurants. For this proposed Starbucks drive-through project to move forward, the applicant would need to receive Council approval of a Zoning Text Amendment to allow drive-throughs in this District. The purpose of the AT-C District is to provide for certain specified commercial and service uses that are compatible with airport activity and serve the general population of the City. Restaurants and by extension coffee shops, such as Starbucks are permitted uses; however, drive-throughs are specifically prohibited.
Staff does not recommend approving this Zoning Text Amendment as it would impact numerous properties throughout the AT-C District (Attachment VI), create potential adverse traffic impacts along Hesperian Boulevard and Winton Avenue, and generate increased greenhouse gas emissions generated from stalled gas vehicles waiting in the drive-through queues. Further, allowing this Text Amendment may set a precedent that the City is lenient with regard to allowing additional drive-throughs throughout the City.
Modifying the One-Half Mile Minimum Distance Standard for Drive-Through Locations:
The one-half mile prohibition standard mentioned previously in this report does not allow the opportunity to establish drive-through restaurants within one-half mile of each other. Establishing the proposed drive-through facility in this location would require amending the existing regulations for a minimum one-half mile separation between drive-throughs. This prohibition was put into place to eliminate overconcentration and saturation of drive-through establishments.
Amendments adopted by the Council in 2018 allowed for flexibility to this standard under certain circumstances noted above; however, the proposed location is more than one-half mile from Interstate 880, which would make it ineligible to be considered as a potential project where to apply the findings included in the text amendment approved by Council in 2018 (Attachment VII) Staff does not recommend amending the drive-through regulations to eliminate the minimum distances or otherwise modifying the adopted drive-through standards which impact drive-through uses city-wide.
Altering the Size and Nature of the Conditionally Approved Commercial Building:
As described above, in 2019, the City approved the Home2Suites project with a variance to increase the allowable height for the hotel, as the proposed development included community amenities with the 5,400 square-foot multi-tenant commercial building and plaza.
Staff believes that shrinking the commercial building and constructing a drive-through on site is not consistent with the findings for the original approval, and the findings that were made to support the Variance for hotel height. Allowing a drive-through use in the site may also result in the project not meeting the landscape requirements of the AT-C Zoning District and included in the conditions of approval.
Questions for the CEDC:
At the April CEDC meeting, staff and the proponent will seek feedback on the policy issues identified above. Specifically, CEDC members are asked to consider the following questions:
Would the CEDC support a Zone Text Amendment to allow drive-through establishments in the AT-C district? Does the CEDC have any concerns with allowing the proposed modification to the approved plan considering the details and conditions of the approved variance? Does the CEDC support amending the drive-through regulations to allow drive-through restaurants to be closer than one-half mile to each other?
NEXT STEPS
After the CEDC reviews and provides comments on the conceptual review, the project proponent will need to decide if they want to continue moving forward with an application for development of their proposal. If they do, at a minimum, the proposal will require submittal of an application for Zone Text Amendment, a modification of an approved Site Plan Review and environmental analysis related to the change in use on the site.
Prepared by: Mira Hahn, Associate Planner
Recommended by: Paul Nguyen, Economic Development Manager Jennifer Ott, Development Services Director
Approved by:
_______________________________________
Kelly McAdoo, City Manager
July 24, 2018 City Council Meeting. https://hayward.legistar.com/LegislationDetail.aspx?ID=3582265&GUID=60EF01FB-13FA-4A66-B88D-97F90E2B01D9&Options=&Search=