PHASE II AMENDMENTS SUMMARY
Chapter 1: Introduction
Proposed
Changes
What are the Key Updates to this Specific Plan?
1. The list of key updates would be expanded to address the various changes intended to promote new housing opportunities as part of mixed-use development and conversion of existing upper-floor commercial area.
Purpose Expand the summary to encompass both of the Phase I and Phase II changes, which together comprise the most significant amendment to the DSP since its original adoption in 1989.
Chapter 2: Profile of Downtown Characteristics
Proposed
Changes
Land Use and Zoning
1. This section describes the different land use characteristics of the Downtown streets and some of the more significant Downtown areas. Subsection 10 (City Hall/Village Entrance references the pre-redevelopment condition of the Village Entrance site and lays out the vision for the planned improvements. The Village Entrance project has now been completed, and this section would be revised accordingly, noting the site’s important function as a link between the summer art festivals and the Downtown core, and use of a rustic California landscape design to establish its visual identity at the entrance to Laguna Canyon.
Land Use Summary
2. The City conducted a land use inventory in 2016 to better understand the existing Downtown land use mix. The Specific Plan notes that a subsequent land use count should be completed in five years to understand land use trends over time, which may inform future land use policy decisions. Staff would update the inventory through records and field research.
Urban Design Features
3. In response to the pandemic, the City has now trialed a pedestrian promenade and outdoor dining and parklet programs. This section would be updated to reference these pilot programs and the entitled design for a permanent Forest Promenade.
Public Infrastructure and Utilities
4. In 2023, the County replaced the concrete flood control channel between Laguna Canyon Road and Frontage Road that failed during a rainstorm in 2019. A description of this project would be added.
Purpose General updates to reflect existing conditions.
Attachment 1
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Chapter 3: Goals, Issue Statements and Policies
Proposed
Changes
Topic 1 (Village Character), Issue Statements and Discussion: Streetscape
1. The following text currently suggests that more consistent two-story development may adversely affect pedestrian orientation and would be revised to align with the Phase II building height recommendations. The effect of more consistent multistory development on the visual character and pedestrian orientation of the Downtown will be studied through renderings that will be prepared for the Phase II project.
“One of the major attractions of the downtown is the pedestrian orientation that is part of the village atmosphere. The variation in building heights, particularly the presence of single story structures, maintains a human scale of development that does not overwhelm a walker and allows views of other notable structures.”
Topic 1 (Village Character) Policies
2. Policies 19 and 20 encourage the continuation of the small lot development pattern that typifies the Downtown area. While this characteristic should be maintained by most development projects, the City is proposing to allow lots to be merged for affordable housing projects and market-rate projects with an inclusionary housing component. These policies would be revised accordingly.
Historic Resources Tables
3. The inventory of properties listed on the City’s Historic Register would be updated to reflect additional properties that have been added to the Register since the list was prepared in January of 2019.
Topic 4 (Parking, Circulation and Public Transit), Issue Statements and Discussion:
Parking Management Techniques
4. This section would be revised to include new transportation demand management initiatives such as the Laguna Local microtransit shuttle service and reference the adopted Parking and Transportation Demand Management Report.
5. This section includes a discussion on repurposing parking and roadways to enhance the pedestrian experience and foster a sense of place, community, and vibrancy to the area. The Specific Plan currently references the trial implementation of a temporary parklet in 2016 and a temporary pedestrian plaza on Park Avenue in 2017. The City has since established the parklet and promenade pilot projects and entitled the design for a permanent Forest Promenade, which would be added to this section of the document.
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Topic 6 (Hazard Planning), Issue Statements and Discussion: Hazard Planning and Stormwater Capacity
6. The Laguna Canyon Creek Channel improvements have now been completed, and the project description would be revised accordingly.
Topic 8 (Housing), Issue Statements and Discussion: Affordable and Special Needs Housing
7. The 2013 Housing Element references would be replaced with the 2021-2029 6th Cycle Housing Element and incorporate updated demographic information prepared for the 6th Cycle update.
8. The Phase II DSP update implements Housing Element Program 5.2-4, which will be added to this section of the Specific Plan.
Topic 8 (Housing) Policies
9. These policies would be amended where appropriate to align with the goals of the Phase II update. This would include references to modified development standards that are intended to improve the feasibility of upper-level residential additions over existing commercial buildings.
10. New policy language would be added to promote infill housing projects, encourage diversifying the housing mix for different types of occupants such as “missing middle” and senior housing, and to note that workforce, senior, and student housing can be encouraged by incentivizing smaller units that are more affordable by design.
Topic 9 (Arts District) Policies
11. New or amended policies would be incorporated to encourage residential uses on mixed-use sites in the Arts District to enhance the year-round vitality of the area.
Topic 10 (Central Bluffs) Policies
12. Policy 6 currently encourages a land use mix including dining, entertainment, hospitality, retailing, socializing, and special event activities. Residential could also be encouraged within the Central Bluffs District as part of mixed-use development. This district overlooks the beach and spans the area of South Coast Highway from Laguna Avenue to Sleepy Hollow Lane.
Purpose The primary purpose of the Chapter 3 revisions is to ensure that the intent of the Phase II changes to increase housing opportunities is addressed with supporting policy language, and that these policies avoid inconsistencies with the more permissive development standards being proposed. This chapter would also be amended to replace outdated information where needed.
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Chapter 4: Urban Design
Proposed
Changes
Streetscape Improvements, Parklet Program
1. The parklet program description would be revised to indicate that parklets have been piloted since the pandemic.
Building Height
2. The 2019 draft included a section on building height, which was omitted in its entirety once the City Council determined to defer any changes to the building height provisions to the Phase II project. The 2019 draft mapped the areas that would be permitted to construct up to one, two, and three stories. Staff is proposing to re-study those recommendations with the intent to maximize infill housing opportunities. Any increase in the maximum allowable building height should be carefully considered and ultimately found to satisfy two criteria: (1) the height increase does not come at the cost of human-scale development that currently contributes to the Downtown’s special character; and (2) the area can potentially accommodate a building height increase without significantly impacting public views of the ocean and hillsides. Private views would continue to be evaluated through the design review process, which takes view equity into consideration. Preliminarily, staff believes that relatively few areas will need to remain at a single-story maximum building height. However, more study will be needed to make a final staff recommendation. Photorealistic renderings depicting upper-level additions at key locations and a 3D model of the Downtown will be prepared to guide public discussion and assist with the analysis in the EIR.
3. In addition to identifying the locations where two- and three-story building heights would be appropriate, staff is recommending that certain areas be permitted to establish residential uses on the ground floor and near the street, with others prohibited from establishing new ground-floor residential uses unless located behind a commercial space when it would have a negative effect on commercial continuity and consequently the pedestrian experience. Ground-floor residential may be appropriate along the Downtown periphery, in areas that interface with abutting residential neighborhoods and that do not have a high concentration of commercial uses that generate high pedestrian activity. This may include areas such as the CBD Office District where pedestrian levels are relatively low. The building height map exhibit in the agenda report also includes staff’s preliminary recommendations for where ground-floor residential should be allowed along the street frontage.
Urban Design Guidelines
4. The urban design guidelines articulate the City’s design approach to Downtown Laguna Beach, and projects subject to design review are evaluated for compliance with the guidelines. The guidelines would be amended to ensure that upper-level additions are adequately addressed.
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5. Certain types of housing development projects are required by state law to be reviewed against objective design and development standards. Objective standards are measurable, verifiable, and knowable to all parties prior to project submittal. To comply with state legislation and ensure that Downtown projects are held to high architectural standards, staff will be developing a set of objective design standards that would apply to certain multi-family and mixed-use residential projects.
6. Currently, design review staff reports that are prepared for projects located in the DSP area include two, separate analyses that evaluate for compliance with both the design review criteria in Section 25.04.040 of the Municipal Code (Design Review) and the DSP urban design guidelines. To be more efficient with staff resources, staff is recommending that the urban design guidelines, which respond directly to the specific issues and context of the Downtown, supersede the more generalized design review criteria. However, there are several design review criteria that do not currently have an urban design guideline equivalent. These are:
environmental context, General Plan compliance, historic preservation, privacy, sustainability, and view equity. Staff proposes to update the guidelines to incorporate these topics so that only the more Downtown-specific set of standards can be applied to projects. If the design review criteria in LBMC Section
25.04.040 are consolidated as part of the Design Review Efficiency Ordinance that is now underway, the approach taken with the DSP design guidelines will be revised to track with the Design Review Efficiency Ordinance.
Purpose Most significantly, the chapter 4 revisions would introduce a new discussion on building height with accompanying map exhibits identifying existing building heights and the proposed maximum allowed building heights. Staff anticipates that the twostory height restriction could be most common, with relatively few areas eligible to receive a third story. In addition to determining which areas will qualify for two- and three-story maximum building heights, the City Council will decide whether upperlevel land uses should be restricted to certain types, such as residential uses only. For areas where a third story would be appropriate, the Council may consider whether third-story additions should be restricted to housing types the City wants to promote, such as affordable, senior or student housing.
This chapter would also be revised to refine the urban design guidelines and establish objective design standards that are contextually appropriate to the unique characteristics of the Downtown.
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Chapter 5: Land Use Districts
Proposed
Changes
Table 5.1, Allowed Uses and Permit Requirements
1. Staff recommends several changes to the permissible land uses, including:
(1) allowing residential uses in the Arts District and Central Bluffs by right; (2) restricting residential uses to above the ground floor or behind sidewalkfronting commercial space in certain zones where pedestrian orientation and the quality of the shopping experience are primary goals, subject to the following additional requirements:
i. The residential use is separated from the primary street, with a commercial use fronting the highway. Primary street shall mean the most primary or highest capacity road classification abutting the site; and ii. The commercial use has a useable, enclosed depth of no less than 30 feet at any point, measured perpendicular to the primary street, except for areas used for open space, pedestrian circulation, or vehicular access. This standard may be modified by the Planning Commission if it finds that the ground-floor commercial use would meet the functional needs of a commercial tenant and provide sufficient street presence to encourage healthy levels of pedestrian activity, or when necessary to comply with the Secretary of the Interior's Standards for the Treatment of Historic Properties; (3) remove the Conditional Use Permit requirement for residential uses in the Visitor Commercial District;
(4) allow artist work/live with a Conditional Use Permit in the Visitor Commercial and Multiple-Family Residential zones;
(5) replace guest houses and guest rooms with accessory dwelling units; and (6) consider creating a list of prohibited uses that are considered inappropriate for the unique functions of the DSP area. Any unpermitted use that is currently established would become a legal, nonconforming use that may be continued.
CBD Office
2. Except for projects that involve City participation and that provide housing for seniors, low-income, or disabled individuals, residential uses in this zone are subject to larger setbacks than non-residential uses. As a result, staff believes that these more restrictive development standards create a barrier to residential infill development, and property owners that are seeking to add value to their existing commercial buildings are more likely to pursue an office addition or other nonresidential development. Staff proposes to revise the standards to incentivize residential uses in the CBD Office District.
CBD Multiple-Family Residential
3. The development standards for the CBD Multiple-Family Residential Zone generally match the R-3, Residential High Density standards. These standards are generally more restrictive than those that apply elsewhere in the Downtown, and 14 PHASE II AMENDMENTS SUMMARY
therefore staff proposes to review these standards to determine if they should be relaxed to better encourage residential uses.
Arts District
4. Intent and Purpose. This section could be revised to expand the scope of desirable residential uses from affordable housing to include all residential uses that are part of a mixed-use project.
5. Building Height. This section establishes special findings that must be made in order to allow buildings to exceed the single-story building height, up to a maximum height of 36 feet. If the City determines that a 36-foot height is generally appropriate in this zone, the special findings would not be required.
General Development Standards
6. Lot Area and Dimension Standards. The DSP currently sets a maximum lot area of 5,000 square feet. The 2019 draft contemplated allowing the assembly of parcels into building sites over 5,000 square feet on Broadway, in the Arts District, and in the CBD Office District for affordable housing projects. Staff believes that these areas continue to be appropriate for the purpose of developing 100% affordable housing projects on larger lots. Market-rate residential projects with an on-site inclusionary housing component and consistent with the requirements of LBMC Section 25.96.070 (Inclusionary Housing Program) will also be eligible for lot mergers.
7. Building Setback and Yard Area Standards. The City currently requires a corner setback on street corner lots. Most Downtown properties have no setback requirements. Staff recommends that a reduced corner setback be allowed when it can be demonstrated that the improvements will maintain adequate motorist visibility and safe pedestrian mobility.
8. Open Space and Landscaping. Lots greater than 2,500 square feet are required to provide open space equal to 25% of the total gross floor area. To encourage infill housing projects, staff recommends that the open space requirements be based on the size of the commercial space only.
9. Building Height Standards. This section would be revised to reflect the maximum allowable building heights that will be implemented with the Phase II update. See “Building Height” discussion above under Chapter 4.
10. Residential Uses. The 2019 draft struck the density restrictions from all Downtown zones except for the CBD Multiple-Family Residential Zone. Under current standards most projects would be limited to one residential unit for every 2,000 square feet of lot area. Staff proposes a relaxed density standard that would incentivize a greater number of smaller dwelling units that may be more affordable by design by establishing the following density provisions • Density cap for two-story properties (residential on one upper floor only): 700 square feet of lot area per unit (62 dwelling units per acre). 15 PHASE II AMENDMENTS SUMMARY
• Density cap of three-story properties (residential on two upper floors) and the Multiple-Family District: 500 square feet of lot area per unit (87 dwelling units per acre).
• Average unit size: 800 square feet maximum
11. Parking. Under current standards, single and two family dwellings require two covered spaces per dwelling unit plus an additional space when the gross floor area of each residence is 3,600 or more square feet, and multiple-family dwellings requires 1.5 spaces for every studio or one-bedroom unit; two spaces for every unit with two or more bedrooms and one additional guest space for four units and every four thereafter. This section would be revised to reduce the residential parking requirement to 0.5 spaces per market-rate or affordable dwelling unit, which may be covered or uncovered.
12. Miscellaneous. As part of the City’s Housing Element implementation, staff has developed an ordinance to reduce the constraints to infill housing on mixed-use sites outside of the Downtown. Staff proposes similar modifications to the DSP regulations, including the following:
Development standard exceptions. Provided that the property owner agrees to enter into a recorded covenant with the City, ensuring that the residential units will not be converted to short-term lodging units as defined in Chapter
25.23, the following development standard exceptions shall apply. The covenant shall be in a form approved by the City Attorney and binding upon all future owners and successors in interest. The approval and recordation shall occur prior to issuance of building permits.
(1) Additional Building Setback Waiver. Compliance with the additional building setback required by Section 25.50.004(D) shall be waived for no more than two exclusively residential floor levels that provides two or more residential units immediately above the ground floor, provided that the following conditions are met:
(a) At least half of these residential units, rounded to the nearest whole number, do not exceed 700 square feet in gross floor area (halves are rounded up); and
(b) The residential plate height does not exceed nine feet and, if the residential floor level is also the uppermost floor, the roof height does not exceed 16 feet above the residential finished floor. (2) Nonconforming Open Space. Residential uses that are proposed above an existing commercial ground floor level may reduce the nonresidential open space required by the zoning district in which the project is located only as necessary to accommodate access improvements, bicycle storage, and trash storage serving the residential use.
(3) Nonconformities - Major Remodel. Residential additions that constitute a major remodel of an existing building or structure shall not be 16 PHASE II AMENDMENTS SUMMARY
required to bring nonconformities associated with the non-residential use or uses into compliance with this Title, including nonconforming parking, provided that the project constitutes a major remodel due to the size of the floor area addition only. This exception does not apply when a project meets one or more of the major remodel demolition thresholds, and in no instance shall this exception be interpreted to relieve projects from compliance with bluff and shoreline development policies, including but not limited to Policy 7.3 and Policy 10.2 of the Land Use Element or the associated action items.
Purpose Revisions to the land use districts and development standards established by Chapter 5 of the DSP are wide-ranging and will help promote new Downtown housing opportunities by addressing multiple regulatory barriers to housing production. These include relaxing density requirements, setbacks, height restrictions, parking requirements, and the open space standards. Several zones where residential uses are currently disallowed would be modified to allow such uses by right or subject to a Conditional Use Permit.
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