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Attachment No. 5 PC Staff Report

Norwalk City Council
October 15, 2024

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Attachment No. 5 PC Staff Report
Meeting
October 15, 2024
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Norwalk City Council
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Text extracted from the city's file for reading and search. Open the original on norwalk.primegov.com. That file is the official record.

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NORWALK
A Connected Community
Planning Commission Agenda Report
July 10, 2024
TO: Planning Commission
FROM: Alexander Hamilton, Interim Community Development Director BY: Gena Guisar, AICP, Contract Planner
Jonathan Kwan, Contract Planner
SUBJECT: General Plan Amendment (GPA) No. 2022-01 (2024-01) Zone Change (ZC) No. 2022-01 (2024-02)
Zoning Text Amendment ZTA No. 2022-02 (2024-04) to establish Specific Plan No. 17, the "Norwalk Transit Village Specific Plan" Final Environmental Impact Report (FEIR) SCH· No.
2022070103
City of Norwalk ("Applicant"); a request to establish a specific plan to allow a mixed-use development with up to 66,647 square feet of neighborhood commercial uses, 13,500 square feet of active commercial uses, 770 residential units (40% of the units will be designated as "affordable," and 3.7 acres of open space.)
1) GPA: To amend the General Plan to add a Specific Plan land use designation and change the land use designation of the project site from Institutional (I) to Specific Plan (SP).
2) ZC: To amend the zoning designation from Institutional (I) to Specific Plan Area
3) ZTA: To establish Specific Area No. 17, the "Norwalk Transit Village Specific Plan).
4) FEIR: To address the potential environmental effects of the NTVSP and impose mitigation measures to reduce potential impacts resulting from project implementation.

RECOMMENDATION
That the Planning Commission:

1. Adopt Resolution No. 24-07 recommending City Council approval of General Plan Amendment No. 2022-01 (2024-01 );

2. Adopt Resolution No. 24-08 recommending City Council approval of Zone Change No. 2022-01 (2024-02);
ATTACHMENT NO. 5
Norwalk Planning Commission
GPA No. 2024-01 / ZC No. 2024-02 / ZTA 2024-04 /
SPA 17 / EIR SCH 2022070103

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July 10, 2024

3. Adopt Resolution No. 24-09 recommending City Council approval of Zoning Text Amendment No. ZTA 2022-02 (2024-04), to establish the "Norwalk Transit Village Specific Plan;" and

4. Adopt Resolution No. 24-10 recommending City Council adopt environmental findings pursuant to the California Environmental Quality Act, certify the Final Environmental Impact Report (SCH #2022070103) for Specific Plan No. 17, the "Norwalk Transit Village," approve a Mitigation Monitoring and Reporting Program and adopt a Statement of Overriding Consideration

AUTHORITY

1. Section 17 .02.105 of the Norwalk Municipal Code (NMC) authorizes the Planning Commission to review general plan amendments, zone changes, and Environmental Impact Reports and prepare a recommendation to the City Council.

BACKGROUND
The 32.3-acre subject site has a general plan land use designation and zoning of Institutional (I). 1he project site is generally situated between Imperial Highway to the north, the Union Pacific Railroad to the east, and Bloomfield Avenue to the west. The project site (Assessor's Parcel Number [APN] 8045-008-902) is located within a predominantly residential area, with a residential townhome community to the north (Norwalk Manor); a 9.4-acre public park (Zimmerman Park) to the east; single-family residential units, a senior residential community, and a hospital (Norwalk Community Hospital) to the south; and single-family residential units to the west, across Bloomfield Avenue. Regional access to the site is provided via Interstate .5 (1-5). Local access is provided via Imperial Highway and Bloomfield Avenue. Additionally, transit access is available for the project site via the Norwalk-Santa Fe Springs Metrolink Station, located approximately 0.2 miles north of the project site.

The project site was originally developed in 1943 as an all-male youth correctional facility operated by the CYA. The CYA (now known as the California Division of Juvenile Justice [DJJ]) is a division of the California Department of Corrections and Rehabilitation that provides education and trauma informed treatment to California's youthful offenders up to the age of 25 who have the most serious criminal backgrounds and most intense treatment needs. As such, the Norwalk CYA facility provided academic and vocational education, medical care, and treatment programs, as well as substance abuse and mental health needs to inmates. In 2011, the CYA facility operations ceased, and the project site remained vacant until 2019, at which time the facility was temporarily utilized by the California Department of State Hospitals (DSH) due to the Coronavirus Disease (COVID- 19) pandemic.

The project site was being used by the DSH as a temporary satellite mental hospital facility to mitigate the effects of "surge space" at local state hospitals until early 2022. The facility was housing primarily COVID-negative mental forensic inmates; however, all inmates have been moved out of the facility. Currently, the DSH has an agreement with the Department of General Services (DGS), who currently owns the property, to use the Norwalk Planning Commission
GPA No. 2024-01 / ZC No. 2024-02 / ZTA 2024-04 /
SPA 17 / EIR SCH 2022070103

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July 10, 2024
facility on an as-needed basis.

Assembly Bill (AB) 518, which was enacted in 2020 and effective January 1, 2021, authorizes the Director, until January 1, 2025, to sell the property to the City of Norwalk at fair market value upon terms and conditions the Director determines are in the best interests of the State. The bill authorizes the.director, notwithstanding those provisions, to sell the property below fair market value for purposes of providing housing to persons and families of low or moderate income. The bill, after January 1, 2025, authorizes the Director to dispose of the property in accordance with specified procedures and priorities otherwise applicable to the disposal of surplus property by DGS. The bill exempts the sale of the property from the California Environmental Quality Act (CEQA).

Under the provisions of AB 518, which amended Government Code Section 11011.28, the City is pursuing the purchase of the project site from the State and proposes a Specific Plan and mixed-use development.

PROJECT DESCRIPTION
The proj�ct proposes the Norwalk Transit Village Specific Plan (Specific Plan) to allow the demolition of the former CYA facility and construction of a mixed-use transit-oriented Eco District with a mix of retail, hospitality, multi-family residential uses, including affordable housing, and park/open space uses. The Norwalk Transit Village is envisioned to be an Eco District-meaning that it is sustainable, resilient, and livable.

The Norwalk Transit Village Specific Plan (Specific Plan) would guide the development of a mixed-use transit-oriented deve lopment at the project site with a mix of office/retail, multi­family residential uses, and park land uses. Transit-oriented development is a compact, walkable, high-density mixed-use residential and commercial area located within 0.25- to 0.5-miles of a transit station, incorporating features to encourage transit use throughout the day such as a mix of uses, high-quality pedestrian and bicycle access, narrow streets, and reduced parking requirements. The proposed Specific Plan includes land use types such as residential, restaurant, hotel, and ground floor active commercial/quasi-public spaces and would prioritize transit access.

The Specific Plan is intended to provide an orderly and efficient development of the project site, in accordance with the provisions of the City of Norwalk General Plan (General Plan). The Specific Plan would serve both planning and regulatory functions including land use regulations, circulation patterns, public facilities/infrastructure, and development standards. All future development within the Specific Plan would be subject to compliance with the Specific Plan regulations, as well as other applicable Norwalk Municipal Code
Norwalk Planning Commission
GPA No. 2024-01 / ZC No. 2024-02 / ZTA 2024-04 /
. SPA 17 / EIR SCH 2022070103
(Municipal Code) regulations.

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July 10, 2024
The Norwalk Transit Village Specific Plan contains five primary objectives to create a vibrant, transit-oriented mixed-use community, including:
• Provide up to 770 new market-rate and affordable housing opportunities that will assist the City of Norwalk in meeting its Regional Housing Needs Assessment (RHNA) obligation.
• Require at least 40% of the residential units as affordable. • Provide a mix of residential, commercial, hospitality and open space uses to serve the community.
• Create a Transit-Oriented community with pedestrian and bicycle connections to the nearby Metrolink Station.
• Establish a community with multi-modal transportation, walking trails, community connectivity, sustainable landscaping and health and wellness-focused amenities.

The NTVSP provides future applicants, City staff, the public, and City decision makers with information on the project and how the Plan area is consistent with the City of Norwalk General Municipal Code. The NTVSP is a regulatory document prepared pursuant to the provisions of California Government Code sections 65450 through 65457. It is intended that local public works projects, design review plans, site plans, permits, or any other action requiring ministerial or discretionary approval applicable to this area be consistent with this Specific Plan.

The Specific Plan establishes eight Planning Areas, each assigned with one of the Specific Plan's three land use designations: Mixed Use Commercial, Mixed Use High Density Residential, and Open Space. Planning Area 1 (PA 1) is an approximately 3.1-acre block designated for Mixed Use Commercial uses. This commercial block enjoys Bloomfield Avenue frontage along the western project entry and permits neighborhood commercial uses at up to 0.5 FAR and a 150-key maximum hotel. The 0.5 FAR excludes the hotel use.

Residential uses are not permitted in PA 1.

Planning Areas 2-5 are designated as Mixed Use- High Density Residential and will allow multi-family residential uses between 20 - 85 dwelling units per acre (subject to an overall Specific Plan area maximum density of 60 dwelling units per acre).

Planning Areas 7 and 8 are designed as Open Space and allow for both active and passive uses such as parks, dog parks and trails.

Proposed residential units would include a mix of 60 percent market-rate and 40 percent affordable residential units. The proposed Specific Plan would allow the following a new neighborhood commercial center encompassing approximately 3.06 acres of the site.

A proposed commercial center (up to 66,647 square feet of building area) would be situated in the westerly portion of the project adjacent to Bloomfield Avenue. The neighborhood commercial center would include non-residential uses at a maximum floor-to-area ratio (FAR) of 0.5, as well as an approximately 150-key hotel.

Norwalk Planning Commission
GPA No. 2024-01 / ZC No. 2024-02 / ZTA 2024-04 /
SPA 17 / EIR SCH 2022070103

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Residential blocks (Planning Areas) would include up to 770 residential units with a sitewide maximum density of 60 dwelling units per acre, of which at least 40 percent of the total number of units in the Specific Plan Area would be affordable. Each residential block would be permitted to contain approximately 2,500 to 3,500 square feet of ground floor ancillary commercial uses allowing up to 11,000 square feet of ancillary commercial/quasi-civic uses.

These ancillary commercial/quasi-civic uses in the residential blocks is in addition to the non-residential area allowed in Planning Area 1.

Open space would be provided through a combination of common and private, active and passive recreation areas, including a 1.56-acre park and 2.06 acres of linear parks; the

2.06 acres would be comprised of a 1.53-acre linear park, a 0.28-acre non-contiguous dog run, and a 0.25-acre pump station.

The city, as the applicant, is requesting an amendment to the General Plan to add a Specific Plan land use designation and change the existing land use designation of the subject site from Institutional (I) to Specific Plan Area (SPA), to rezone the property from Institutional (I) to Specific Plan Area 17 (SPA 17) and certification of an Environmental Impact Report to address the potential environmental effects of the NTVSP and impose mitigation measures to reduce potential impacts resulting from project implementation.

Staff is recommending approval of the project as the proposed specific plan and associated entitlements will facilitate the transformation of the former CYA site into a transit oriented mixed- use community with new commercial and residential uses, and an enhanced open space area that will be carefully integrated with the existing community.

Specific Plan
A specific plan is a zoning tool available to local jurisdictions to guide development over a defined area. The specific plan has been identified as the appropriate zoning tool for the project site due to the presence of the former Youth Correctional Facility, the desire to introduce new commercial and residential uses, and to ensure high-quality streetscape, open space, architecture and landscape design. The City of Norwalk has utilized the Specific Plan as an important zoning tool since 1987. The Specific Plan encourages excellence in site planning while allowing for flexibility to respond to market conditions in accordance with community values and priorities. It also allows for a more context sensitive design that benefits the community in a myriad of ways.

The Specific Plan will contain the minimum components required by the State of California.

Section 65451 of the Government Code mandates that a specific plan include text and a diagram or diagrams that specify all of the following:
• The distribution, location and the extent of the uses of land, including open space within the area covered by the plan;
• The proposed distribution, location, and extent and intensity of major components of public and private transportation, sewage, water, drainage, solid waste disposal, energy, and other essential facilities proposed to be located within the area covered by the plan and needed to support the land uses described in the plan; • Standards and criteria by which development will proceed, and standards for the Norwalk Planning Commission Page 6
July 10, 2024 GPA No. 2024-01 / ZC No. 2024-02 / ZTA 2024-04 / SPA 17 / EIR SCH 2022070103
conservation, development, and utilization of natural resources, where applicable; • A program of implementation measures including regulations, programs, public works projects, and financing measures necessary to carry out the project; • A statement of the relationship of the specific plan to the general plan.

The proposed Norwalk Transit Village Specific Plan, SP 17, ( dated July 2024) contains the required components. The Specific Plan details the site's context and setting, including its relationship with the surrounding community and its intent of transforming a blighted state property with new homes, community-enhancing activation and recreational areas for the entire city to enjoy.

Analysis
The applicant (City) is requesting approval of a General Plan Amendment, Zone Change, Specific Plan Area and EIR to allow a mixed-use development at the former CYA site. An analysis of the issues is presented in Table 1 below.

Issue
Density
Table 1: Issues Ana1vs1s
Analysis
The existing General Plan land use designation of Institutional regulates intensity through parking standards and building setbacks.

However, the maximum building height and minimum setbacks within the Specific Plan will allow a density range of 20 - 60 dwelling units per acre within each residentially-designated Planning Area (with an overall Specific Plan area maximum of 60 dwelling units per acre).

Additionally, the Specific Plan will permit a floor area ratio (FAR) of up to 0.5 (excluding the hotel) within Planning area 1. The intensities permitted by the Specific Plan provide the framework for a vibrant Transit Oriented Mixed-Use community. Integrating commercial and residential uses within a development encourages a walkable and bicycle-friendly environment oriented towards activating outdoor spaces, patronizing retail stores and services, and minimizing vehicular travel.

Norwalk Planning Commission Page 7
July 10, 2024 GPA No. 2024-01 / ZC No. 2024-02 / ZTA 2024-04 / SPA 17 / EIR SCH 2022070103
Parking The Specific Plan establishes unique parking ratios for the various residential types permitted as follows:

Use Requirement
Affordable Multifamil
Student Micro-unit
Senior Unit
Town homes
Residential Guest Parkin
Parking ratios established for the non-residential uses in Planning Area 1, the hotel and Electric Vehicle Charging spaces are as follows:

Use Requirement
Non-residential in Plannin Area 1
1 space/250 SF of Net
Leasable Area
1 space/2 guest rooms; plus
parking for any
restaurant/retail uses as
Hotel com uted se aratel .

Electric Vehicle Char in Per CALGreen
Ground floor active commercial/quasi-public space included within the multifamily buildings shall not require additional parking. On-street parking may be used to meet residential guest parking requirements.

Commercial Short-Term 1 er 1,000 SF
1 per 1,000 SF, but not less
Commercial Lon -Term than 4 er buildin
The vehicular and bicycle parking standards in combination with the parking design established by Specific Plan are on par with a Transit-Oriented development which promotes walking, biking and transit use.

Norwalk Planning Commission Page 8
July 10, 2024 GPA No. 2024-01 / ZC No. 2024-02 / ZTA 2024-04 / SPA 17 / EIR SCH 2022070103
Open Space A publicly accessible network of parks and linear parks/greenways will run through the Norwalk Transit Village Specific Plan area and connect it to Zimmerman Park. A variety of community and wellness-oriented amenities that promote health, social and mental well-being will be distributed throughout the network. Examples of open space amenities may include a tot lot with play structures, shade structures, walking trails, par course or fitness equipment, community gathering areas, community gardens, outdoor seating, dog runs, etc.

Open space would be provided through a combination of
common and private, active and passive recreation areas, including a 1.56-acre park and 2.06 acres of linear parks; the

2.06 acres would be comprised of a 1.53-acre linear park and a

0.28-acre contiguous dog run.

General Plan Amendment I Zone Change
The applicant (City) has requested to amend the General Plan to add a Specific Plan land use designation and change the land use designation of the project site from Institutional (I) to Specific Plan (SP). The larid use designation would permit a mix of residential, commercial, hospitality and open spaces.

The zone change of the subject site from Institutional to Specific Plan 17 allows for a Mixed-Use, Transit Oriented Eco District that is pedestrian oriented and compatible with surrounding residential and commercial uses. Specific Plan 17 promotes high quality design and active outdoor spaces and encourages use of transit and other modes of travel and is consistent with the goals and policies of the General Plan. Development regulations will facilitate the orderly and harmonious development of the site in accordance with community priorities and values.

California Environmental Quality Act
Pursuant to the California Environmental Quality Act (CEQA), a draft environmental impact report (Draft EIR) was prepared for the project and available for a 45-day public review period. The Draft EIR analyzed 16 environmental topic areas and included supporting technical studies relating to cultural resources, geotechnical conditions, hazardous materials, transportation and traffic, air quality, greenhouse gas emissions, energy, noise, and water supply. All project impacts would be less that significant, in some cases with mitigation incorporated, except for greenhouse gas emissions. Project related greenhouse gas emissions from direct and indirect sources would remain significant and unavoidable despite implementation of mitigation.

Norwalk Planning Commission
GPA No. 2024-01 / ZC No. 2024-02 / ZTA 2024-04 /
SPA 17 / EIR SCH 2022070103

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July 10, 2024
The EIR also identified and analyzed three alternatives to the project, which included a No Project Alternative, a Reduced Density Alternative, and an All-Residential Alternative.

These alternatives were selected based on their potential to implement certain components of the project to accomplish some or most of the basic objectives of the project and avoid or substantially lessen one or more of the proposed project's significant effects. Specifically, the "No Project" Alternative is considered to enable the decision:­ makers to compare the impacts of approving the project with the impacts of not approving the project. The "Reduced Density" Alternative was selected for analysis, since this alternative would meet many of the project's goals and objectives, while also reducing potential mobile emissions, which would reduce greenhouse gas emissions. Last, the "All­ Residential Development" Alternative was selected for analysis to evaluate an alternative that is consistent with the General Plan's description of the project site as an Opportunity Site. Specifically, the General Plan encourages the project site to be redeveloped into a residential community, including common open space and recreational facilities.

A total of 12 comment letters were received during the 45-day public review period and responses to comments are included in the Final EIR. None of the responses to comments or revisions made in the FEIR constitutes significant new information requiring recirculation of the Draft EIR for further public comment under CEQA Guidelines Section 15088.5. None of the information or material included in the Final EIR indicates that the project will result in a new significant environmental impact not previously disclosed in the Draft EIR. Additionally, none of this information or material indicates that there would be a substantial increase in the severity of a previously identified environmental impact that will not be mitigated, or that there would be any of the other circumstances requiring recirculation.

Mitigation Measures
The City has prepared a Mitigated Monitoring and Reporting Program (MMRP) for the Specific Plan. The MMRP contains 9 mitigation measures covering 5 environmental impact categories including Tribal Cultural Resources, Cultural Resources, Geology and Soils, Transportation, and Greenhouse Gas Emissions. With the incorporation of mitigation measures, the identified potentially significant environmental impacts would be reduced to less than significant levels, with the one exception of greenhouse gas emissions, as discussed above.

Significant and Unavoidable Impacts
The Draft EIR identifies a significant and unavoidable impact with regard to GHG emissions. The project would generate an increase in GHG emissions, either directly or indirectly, that would have a significant impact on the environment despite implementation of Mitigation Measures GHG 1 through GHG-4. If the City of Norwalk decides to approve the project, the City must cite their findings in accordance with Section 15091 of CEQA and prepare a Statement of Overriding Considerations in accordance with Section 15093 of CEQA.

Norwalk Planning Commission
GPA No. 2024-01 / ZC No. 2024-02 / ZTA 2024-04 /
SPA 17 / EIR SCH 2022070103

PUBLIC NOTIFICATION & COMM UNITY OUTREACH

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The applicant conducted extensive community outreach since 2019 to solicit and incorporate feedback from surrounding neighborhoods, community members, public agencies, and other interested parties. The applicant's community outreach included:
• Creation of a project website: www.NorwalkTransitVillage.com • 25 social media posts across three platforms with over 1,500 engagements • Seven email updates to over 5,600 residents surrounding the site • Seven text message blasts to over 1,900 residents surrounding the site • Over 12 stakeholder meetings that engaged about 60 people • Over 4,326 mailers and surveys sent to neighboring stakeholders • Connected with over 270 residents at two Farmer's Market events • A 25-person community-based steering committee met three times The City also met the CEQA requirements related to public notification, informational meetings, and noticing. Notices were mailed to property owners within a 500-foot radius of the project site, to public agencies, and interested parties during the scoping period for preparation of the EIR, to notify of the 45-day public review period of the Draft EIR, and for the public hearing. CEQA notices were also published in the Norwalk Patriot posted on the subject site (City Hall). The City's social media accounts also promoted notification of the project for the hearing and associated meetings during the CEQA process. Two public meetings facilitated by the City were also held. The FEIR was also posted on the city's website.

In addition to the CEQA noticing, the City posted the notice of this public hearing in the Norwalk Patriot, mailed out notices to property owners within a 500-radius (this exceeds the minimum NMC requirement), as well as interested parties.

SUMMARY
Based on the analysis in this report, staff is supportive of General Plan Amendment No. 2024-01, Zone Change No. 2024-02, Zoning Text Amendment 2024-04, Specific Plan 17, and Environmental Impact Report SCH #2022070103. The proposed project has been analyzed by the EIR, which finds that one significant and unavoidable impact related to greenhouse gas (GHG) emissions would result from implementation of the project. It's important to note, that many in-fill urban projects fail to meet this threshold. Also, the Southcoast Air Quality Management District has no established GHG Thresholds instead operating on interim measures. With the incorporation of mitigation measures, all other potentially significant environmental impacts can be reduced to less than significant levels. Should the City approve the proposed project, it would have to adopt a statement of overriding considerations and findings of fact identifying that the benefits of the project outweigh the unavoidable significant environmental effects. The project will transform the former California Youth Authority correctional facility site into an active and vibrant, mixed­ use Eco District with housing choices and affordability options for current and future Norwalk residents. As mentioned above it is an important urban infill development project.

Norwalk Planning Commission
GPA No. 2024-01 / ZC No. 2024-02 / ZTA 2024-04 /
SPA 17 / EIR SCH 2022070103

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July 10, 2024
Infill development is an important planning principle considering the option of development of rural properties in outlying areas.

ECONOMIC DEVELOPMENT
The proposed project will have a positive fiscal benefit to the city. Estimates from renowned economist Kosmont Companies projects the following benefits to the City from this project:
• $500,000/annually from Hotel Transient Occupancy Tax (TOT); • $200,000 from commercial/retail sales tax annually; and • $170,00 (approximate) in net annual property tax to the City.

The net positive benefit from this project cannot be understated. The revenues make a positive benefit to city services provided to the community. Equally as important, like the Entertainment District (The Walk), this project will be transformative for the community and serves as an important "placemaking" element which will affirm Norwalk's position in the region.

Attachments
A. PC Resolution No. 24-07 recommending City Council approval of General Plan Amendment No. 2022-01 (2024-01)
B. PC Resolution No. 24-08 recommending City Council approval of Zone Change No. 2022-01 (2024-02)
C. PC Resolution No. 24-09 recommending City Council approval of Zoning Text Amendment No. 2022-02 (2024-04) to establish Specific Plan Area No. 17, the "Norwalk Transit Village Specific Plan"
D. PC Resolution No. 24-1 O recommending City Council adopt environmental findings pursuant to the California Environmental Quality Act, certify the Final Environmental Impact Report (SCH #2022070103) for Specific Plan No. 17, the "Norwalk Transit Village," approve a Mitigation Monitoring and Reporting Program and adopt a Statement of Overriding Consideration
E. Draft City Council Ordinance Adopting Zoning Text Amendment No. 2022-02 (2024- 04) to establish Specific Plan Area No. 17,
F. Location and Vicinity Map
G. Draft Specific Plan Area No. 17, the "Norwalk Transit Village Specific Plan" H. Draft Environmental Impact Report (https://www.norwalk.org/city­ hall/departments/community-development/planninq/advanced-planninq­ pro jects/norwalk-transit-village)
I. Final Environmental Impact Report (https://www.norwalk.org/city­ hall/departments/community-development/planning/advanced-olanning­ pro jects/norwalk-transit-village)
J. Draft Mitigation Monitoring and Reporting Program
K. Draft Statement of Overriding Consideration

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