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Att # 2 - Planning Commission Staff Report

City Council/Public Financing Authority
July 5, 2022

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Att # 2 - Planning Commission Staff Report
Meeting
July 5, 2022
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #: 22-324 MEETING DATE: 4/26/2022

PLANNING COMMISSION STAFF REPORT
TO: Planning Commission
FROM: Ursula Luna-Reynosa, Community Development Director BY: Tess Nguyen, Associate Planner
SUBJECT:

ENTITLEMENT PLAN AMENDMENT NO. 22-003 (7-11 GAS STATION AND CONVENIENCE STORE)
REQUEST:

To remove Condition of Approval No. 6(b) of Conditional Use Permit No. 19-014 requiring all existing overhead utilities along the property’swesterly property line to be undergrounded.

LOCATION:
16171 Beach Boulevard, 92647 (southwest corner of Beach Boulevard and Stark Drive)
APPLICANT:

Julie Morris, 2521 Fairmount Street, Dallas, TX 75201

PROPERTY
OWNER:

AF-GHBM, LLC, 2521 Fairmount Street, Dallas, TX 75201
STATEMENT OF ISSUE:

1. Does the project still meet the required findings for a conditional use permit if Condition of Approval No. 6(b) is removed?

2. Is there enough information to support the removal of Condition of Approval No. 6(b) requiring the undergrounding of all existing overhead utilities for the proposed project?

3. Has the appropriate level of environmental analysis been determined? ACTIONS:

The Planning Commission shall deny Entitlement Plan Amendment No. 22-003 unless the required findings for approval can be made. To that end, the Planning Commission may take one of the following actions:

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File #: 22-324 MEETING DATE: 4/26/2022
A) Deny Entitlement Plan Amendment No. 22-003
Motion to: “Deny Entitlement Plan Amendment No. 22-003 to remove Condition of Approval No. 6(b) of Conditional Use Permit No. 19-014 with findings.” (Attachment No. 1) B) Approve Entitlement Plan Amendment No. 22-003 (Applicant’s Request) Motion to: “Continue Entitlement Plan Amendment No. 22-003 and direct staff to return with findings approving Entitlement Plan Amendment No. 22-003 to remove Condition of Approval No. 6(b) of Conditional Use Permit No. 19-014.”
C) Continue Entitlement Plan Amendment No. 22-003 and provide alternate direction to staff.

PROJECT PROPOSAL:

On January 28, 2020, the Planning Commission approved Conditional Use Permit No. 19-014 to demolish an existing auto repair building and construct a 2,323 sq. ft. convenience store operating 24 hours per day with ABC Type 20 License (Off-Sale Beer and Wine) and an eight pump fueling station at 16171 Beach Boulevard.

The approval included a number of conditions, including Condition of Approval No. 6(b), recommended by the Public Works Department, which reads as follows:

All existing overhead utilities that occur along the property’swesterly property line shall be undergrounded. This includes the Southern California Edison (SCE) aerial distribution lines (12kv) and poles (nos. 102601NG and 10394478E) along the entire length of the westerly property line of the subject project. This condition also applies to all utilities, including but not limited to all telephone, electric, and Cable TV lines. If required, easements shall be quitclaimed and/or new easements granted to the corresponding companies. (PW) As explained in more detail below, the condition is a typical requirement imposed upon new developments, with each development responsible for undergrounding a limited area proportional to its property frontage.

Recently, on March 21, 2022, the applicant submitted Entitlement Plan Amendment No. 22-003, requesting the removal of Condition of Approval No. 6(b) based on financial concerns. The applicant has not proposed any alternative action besides non-performance of the undergrounding work.

ISSUES AND ANALYSIS:

Subject Property And Surrounding General Plan Designations, Zoning And Land Uses:

LOCATION GENERAL PLAN ZONING LAND USE
Subject Property: M-sp (Mixed Use -
Specific Plan Overlay)
SP14 (BECSP-Town
Center Boulevard
Segment)
Commercial - 7-11
Building (under
construction)
North of Subject
Property:

M-sp SP14 Bank
East of Subject
Property:

M-sp SP14 Commercial Shopping
Center
South of Subject
Property:

M-sp SP14 Pet Hospital and
Restaurant
West of Subject
Property:

RMH (Residential
Medium High Density)
RMH (Residential
Medium High Density)
Multi-Family
Residential
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File #: 22-324 MEETING DATE: 4/26/2022

LOCATION GENERAL PLAN ZONING LAND USE
Subject Property: M-sp (Mixed Use -
Specific Plan Overlay)
SP14 (BECSP-Town
Center Boulevard
Segment)
Commercial - 7-11
Building (under
construction)
North of Subject
Property:

M-sp SP14 Bank
East of Subject
Property:

M-sp SP14 Commercial Shopping
Center
South of Subject
Property:

M-sp SP14 Pet Hospital and
Restaurant
West of Subject
Property:

RMH (Residential
Medium High Density)
RMH (Residential
Medium High Density)
Multi-Family
Residential
General Plan Conformance:

The Public Works Department originally reviewed the project in 2019. At that time, staff determined that the project scope was sufficient to recommend undergrounding as a condition of approval. In making its recommendation, staff considered direction provided by a General Plan policy addressing utility undergrounding, as follows:

Circulation Element
Policy CIRC-7(F): Continue to locate new and relocated utilities underground within scenic corridors to the greatest extent possible. All other utility features shall be placed and screened to minimize visibility.

The nexus between Policy CIRC-7(F) and the project is the project location along the Beach Boulevard and Stark Drive; the entirety of Beach Boulevard is identified as a “sceniccorridor”in the Circulation Element. Staff also considered the past history of undergrounding (or payment of corresponding in lieu fees) by all recent applicants within the project vicinity as well as Policy CIRC-7 (F)’sgeneral direction to implement undergrounding “to the greatest extent possible”. As a result, staff made its recommendation to the Planning Commission to require undergrounding along the project property. As is typical for all public hearings, the applicant had an opportunity to contest the condition at the January 28, 2020 Planning Commission meeting. The applicant did not bring up the recommended condition of approval at the public hearing, and the Planning Commission ultimately adopted staff’srecommendation. In the two years since the project’sapproval, much of the project has been constructed. As discussed further below, the applicant is now citing the high costs associated with the work as the reason for its request to complete the project without undergrounding utilities rather than any mistake in applying the City’s policy to the project back in 2020.

Zoning Compliance:

Under the Zoning Ordinance, conditions of approval may be imposed on projects for certain reasons:
1) to make the project consistent with the General Plan; 2) to protect the public health, safety, and general welfare; and/or 3) to ensure operation and maintenance of the use in a manner compatible with existing and potential uses on adjoining properties or in the surrounding area. Accordingly, in considering the applicant’srequest to remove a condition, the Planning Commission must determine whether it could still make the findings to approve the underlying CUP application without Condition of Approval No. 6(b). To that end, the Planning Commission must consider whether the proposed project remains consistent (and will not adversely affect) with the General Plan if the condition is removed.

Next, in order to guide the Planning Commission’sdiscussion with respect to issues of public health, safety, and welfare, and compatibility with existing and potential uses in the area, staff has analyzed the standards for waiving undergrounding for analogous development projects (i.e., subdivision projects). For those projects, the Zoning Ordinance permits waiver of the undergrounding City of Huntington Beach Printed on 4/21/2022Page 3 of 6 powered by Legistar™
File #: 22-324 MEETING DATE: 4/26/2022
projects). For those projects, the Zoning Ordinance permits waiver of the undergrounding requirement where waiver benefits the public welfare, that is only if:
- The project is within an area where existing utilities have not been placed underground; - Physical constraints make undergrounding of existing and proposed utilities impractical; and - Overhead utilities will have no visual impact.

Undergrounding of Existing Utilities in the Surrounding Area While the subject site includes existing overhead lines that have not been undergrounded along interior property lines and crossing adjoining streets, all properties abutting Beach Boulevard within the City limits contain no existing overhead lines along the Beach Boulevard frontage (with the exception of certain perpendicular crossings at Atlanta Avenue and Slater Avenue). Some properties abutting Beach Boulevard still have overhead lines along the interior property lines that have not been undergrounded because they have not been redeveloped yet. Undergrounding of utilities is required when a property is proposed for development. Since 2008, similar projects along the Beach Boulevard corridor have been required to underground existing overhead lines (or pay an in-lieu fee) including the Beach Medical Office Building (17752-17762 Beach Boulevard) and The Learning Experience (17131 Beach Boulevard). Other similar-sized projects elsewhere within the City limits that have been required to underground existing overhead lines (or pay in-lieu fees) include the 7-11 retail center (7012 Edinger Avenue), Plaza Marina retail center (16161 Springdale Street), 7-11 retail center (6012 Edinger Avenue), and Chase Bank (20001 Brookhurst Street).

Undergrounding Cost Estimates
Below is a table that includes undergrounding costs for past similar projects that were required to underground the existing utilities that paid in-lieu fees:

Project Developer
Estimate
In-Lieu
Amount
Estimated
LF of UG
Required
Building
Square
Footage
Frontage
Length
Amount
per SF of
Building
Amount per
LF of UG
7-11 Retail 7012
Edinger
$48,140 120 ft. 4,200 sf 301 ft. $11.46 $401.17
Plaza Marina
16161 Springdale
$48,000 264 ft. 5,605 sf 264 ft. $8.56 $181.82
7-11 Retail 6012
Edinger
$72,000 353 ft. 3,400 sf 360 ft. $21.18 $203.97
Chase Bank 20001
Brookhurst
$86,000 440 ft. 4,335 sf 440 ft. $19.84 $195.45
Beach Medical
Building 17752-
17762 Beach
$53,000 110 ft. 35,640 sf 564 ft. $1.49 $481.82
The Learning
Experience 17131
Beach
$189,530 500 ft. 9,997 sf 760 ft. $18.96 $379.06
7-11 & Gas Station
16171 Beach
$562,751 200 ft. 2,323 sf 284 ft. $242.25 $2,813.76
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Physical Constraints
The overall undergrounding scope for this project includes trenching and running conduit for new underground cables, placement of an underground vault in the Stark Drive right-of-way, removing the existing overhead wires (and existing onsite pole), and pulling new cable within the recently installed conduits. To date, the underground conduits have been installed at the project site with the other aforementioned scope of work items remaining. With respect to the existing and new public utilities (water and sewer) near or adjacent to the subject project, all necessary clearances have been accounted for in the project’sdesign, related street improvement plans, and the Southern California Edison plan for placement of the new vault in Stark Drive.

The project was approved with a condition of approval that required the construction of 8 ft. high and 8 in. wide block walls along the westerly and southerly property lines. According to the applicant, there is insufficient space to fit the large footings for the 8 ft. high walls and the underground structure to house the conduits along the westerly property line. However, the wall footings were redesigned in order to install both the footings and conduits.

Visual Impact of Overhead Utilities
The existing overhead utility lines (at the property’swesterly edge) do not create a visual impact from Beach Boulevard due to screening by the new retail building, the fueling gas station, and related canopies. However, the existing overhead utility lines create a visual impact from Stark Drive due to an existing pole at the project’sfrontage on Stark Drive and an existing pole within the site’swesterly boundary and directly in the line of sight from adjacent residential properties. Additionally, there are five existing overhead lines (between these poles) plus three pole-mounted transformers that create a visual impact as well. If Condition of Approval No. 6(b) is retained to require undergrounding, the existing pole at the project’sfrontage on Stark Drive will remain as a guy pole for the pole across the street. However, the guy pole will be shorter and not have any transformers or overhead lines.

Urban Design Guidelines Conformance:

Not applicable.

Environmental Status:

The proposed project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (General Rule) of the CEQA Guidelines because there is no potential that the removal of the subject condition of approval will have a significant effect on the environment.

In the event that the Planning Commission denies the application, the proposed project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (General Rule) of the CEQA Guidelines because denial of the project means that there is no change whatsoever in the condition of the property or surrounding areas, and therefore there is no potential for causing a significant effect on the environment. In addition, pursuant to Section 15270 of the CEQA Guidelines, CEQA does not apply to projects that are disapproved or denied by the approval body.

Coastal Status:

Not applicable.

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File #: 22-324 MEETING DATE: 4/26/2022
Design Review Board:

Not applicable.

Other Departments Concerns and Requirements:

The Public Works Department has reviewed the request and provided comments (Attachment No. 6).

Public Notification:

Legal notice was published in the Huntington Beach Wave on April 14, 2022, and notices were sent to property owners and occupants within a 500 ft. radius of the subject property, individuals/organizations requesting notification (Planning Division’s Notification Matrix), and applicant.

Application Processing Dates:

DATE OF COMPLETE APPLICATION: MANDATORY PROCESSING DATE(S):

April 6, 2022 June 6, 2022
SUMMARY:

Based on the information in the analysis section, the Planning Commission should consider to approve or deny the request and take one of the actions outlined above.

ATTACHMENTS:

1. Suggested Findings for Denial of Entitlement Plan Amendment No. 22-003

2. Vicinity Map

3. Site Plan received and dated March 21, 2022

4. Project Narrative received and dated March 21, 2022

5. Public Works Department Comments dated April 13, 2022 City of Huntington Beach Printed on 4/21/2022Page 6 of 6 powered by Legistar™

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