Item #10
Date: February 20, 2024
To: Mayor and City Council
From: Dan Flores, Community Development Director
Paul Richardson, Consultant - Management Advisory Service Kathy Pease, Consultant - Management Advisory Service
Jim Schaad, City Manager
Subject: Development Plan Review, Use Permit and Design Review Application for the B Street Hotel and Commercial Center on the Property Bounded by 14th Street, B Street 12 Street, and the Railroad Right of Way
Recommendation:
Pass a motion to approve the Planning Commission’s unanimously recommended 1) Development Plan Review, 2) Use Permit and 3) Design Review Application for the B Street Hotel and Commercial Center.
Rationale for Recommendation:
The applicant proposes to construct a 113-room, 62,620-square foot (sf), four-story hotel (up to 48-feet-6- inches) with 2,500 sf event space, a 2,500-sf quick service restaurant (Starbucks) with dual drive-thru lane and a 16,000-sf retail/market space. The project requires Design Review Approval because it is in the Historic Overlay District. Design Review would consider the architecture of the three proposed buildings and related site improvements. A Use Permit is required only for the drive-thru lane associated with the quick serve restaurant. A Development Plan Review is unique to Marysville and requires the Council to also approve commercial projects over 75,000 sf.
Consideration of this project is one of the milestones in the approved Development Agreement between the City, Engstrom Properties, Inc and The Presidio Companies, LLC to sell and develop the 4.97-acre B Street development site.
Background:
Attachment 2 is the complete Planning Commission Staff Report and analysis of the project. Attachment 3 is the Planning Commission Resolution of approval with development conditions. In short, this project is the culmination of a lengthy process beginning in 2005 where the City issued Certificates of Participation to acquire the site and prepare it for development. Ultimately, the City entered into a development agreement with Engstrom Properties, Inc and The Presidio Companies, LLC to purchase and develop the site following an open Request for Proposal process.
Discussion & Analysis:
The complete analysis is included in the attached Planning Commission staff report and findings and conditions of approval are included in the attached resolution. For the Design Review considerations, the Item #10
project is within the boundaries of the Historic District, but no historic structures are located on the site or adjacent to the property. Therefore, the project will not be incompatible with the Historic District guidelines. Development of the project will incorporate modern style architecture consistent with newer development in the community. The project incorporates brick or split face block wainscoting, cornice treatments and colors consistent with the Historic District. Roof equipment will be concealed behind the parapet walls and should not be visible off-site from the pedestrian view. Lighting will provide security and limit off-site glare. The circulation distinguishes on-site uses and organizes traffic in an understandable manner. The landscaping enhances the site, and the addition of the security fence will protect the site and limit debris from blowing off-site.
Per section 18.96.030 of the Municipal Code regarding Drive-through facility performance standards, the project complies with all the standards set forth in that section. The drive-thru entry is located to the rear of the property and has a dual lane configuration. This will limit both on and off-site traffic conflicts.
Under the Development Plan Review the Council is required to consider and approve a project if it is over 75,000 sf due to the project scale. This is a process unique to Marysville, but the Design Review and Use Permit are the only considerations of the Development Plan Review in addition to infrastructure adequacy. The project is served by adequate infrastructure, and some on-site utilities must be relocated to accommodate the project. Conditions of approval require a utility relocation plan and approval by appropriate utilities prior to the issuance of building permits.
The project will take primary access from B Street with secondary access via 14th Street and by way of an access easement across the Quick Stop Station to 12th Street. A Vehicle Miles Traveled (VMT) analysis was prepared which shows the project will have no effects on traffic. Roadway improvements will be required along 14th Street, but no other off-site circulation improvements are necessary. A Caltrans encroachment permit is not necessary along B Street as the project will utilize the existing frontage improvements and driveway access. There is about 1,215 sf of property frontage that Caltrans has indicated it wishes to acquire from the City for future Highway 70 road widening purposes.
Alignment with City Council Goal(s):
Goal #1: Increase Fiscal Sustainability – The City intends to sell the property to the developer. The project is a significant development and will add to both assessed value and sales tax. The hotel will also contribute to the City’s Transient Occupancy tax. All taxes are on-going and not one-time revenue which will enhance the general fund and help pay the Certificates of Participation which were used to acquire the site.
Goal #2: Expand Economic Development – The development will revitalize a vacant, underutilized property with a new, modern lodging and commercial center. In addition to the expanded economic development, the project will provide a community event center for social and civic gatherings.
Environmental Review:
California Environmental Quality Act (CEQA) Guideline Section 15332 identifies the Class 32 categorical exemption for projects characterized as in-fill development. This exemption is intended to promote infill development within urbanized areas. The class consists of in-fill projects which are consistent with local general plan and zoning requirements that are less than five-acres in size, adequately served by utilities, and meet the other criteria specified in the CEQA attachment. The Project revitalizes a previously developed site in the City of Marysville and qualifies for the exemption. Based on testimony at the Planning Commission regarding air quality from idling traffic in the drive-thru lane, Acorn Environmental prepared an operation and construction air quality analysis. That study concluded that: “(w)ithout any mitigation measures identified in the CalEEMod analysis, the proposed project will not exceed FRAQMD Item #10
thresholds of significance for construction or operation which confirms that the project will not have any air quality impacts. A copy of that study is attached.
Fiscal Analysis:
Per the terms of the Development Agreement, the City will receive the purchase price provided for in the acquisition agreement. The project will have a positive impact on assessed value, sales, and transient occupancy tax.
Attachment(s):
1) Proposed Council Resolution
2) Planning Commission Staff Report
3) Planning Commission Resolution of Approval
4) CEQA Infill Environmental Analysis including VMT report 5) Project Plans
6) Acorn Environmental B Street Air quality analysis February 13, 2024