CITY COUNCIL STAFF REPORT
Meeting Date: August 01, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: PUBLIC HEARING AND ADOPT RESOLUTION NO. ___-22,
APPROVING A DEVELOPMENT PLAN PERMIT & ARCHITECTURAL
REVIEW PERMIT AMENDMENT (PLN 18-0198) FOR THE CAMBRIA
HOTEL PROJECT INCLUDING SITE IMPROVEMENTS AT 3131 AND
3195 NORTH MAIN STREET AND 1531 OAK PARK BOULEVARD
(ASSESSOR PARCEL NUMBERS 170-092-050, 054, 055, 057, 058, 059)
SYNOPSIS
This is a public hearing to consider a modification to previously approved Development Plan and Architectural Review Permit conditions of approval for the Cambria Hotel Project and related site improvements. The approved project included a General Plan Amendment, Planned Unit Development (Rezoning) Concept Plan, Development Plan Permit, Architectural Review Permit, including adjustments to development standards and certification of an Environmental Impact Report. The project is a three- and four-story, 155-room hotel (approximate 49-foot-tall building with architectural features up to 59 feet tall) with associated parking, landscaping, and amenities on an approximately 2.5-acre at 3131 and 3195 North Main Street and 1531 Oak Park Boulevard (Assessor Parcel Numbers 170-092-050, -054, -055, -057, -058, and -059). The applicant’s request does not include any changes to these aspects of the project. The applicant is seeking amendment to the approved public benefit package and changes to the conditions of approval related to the public benefit in the form of undergrounding improvements, as described in the staff report.
DISCUSSION
Background
The applicant originally submitted an application for the hotel in 2018. The City approved the project in September 2019 after multiple hearings with the Architectural Review and Planning Commissions and the City Council. The project included a public benefit proposal that incorporated off-site undergrounding of utilities. The ARC determined, from a design perspective, that one remaining pole on site would be appropriate, while the PC supported project undergrounding of utilities, but was open to subsequent analysis to determine feasibility of undergrounding to the south or north of the Oak Park Boulevard overpass. The City Council, further discussed the off-site undergrounding of utilities and concluded that the off-site utility undergrounding to the north of the Oak Park Boulevard overpass is appropriate and included this requirement as part of the project’s public benefit package.
The applicant then made a building permit submittal to the City just prior to the start of the global COVID-19 pandemic. The pandemic slowed the pace of the project, which required a time extension from the City (granted in August 2021). The applicant began discussions with PG&E during the pause, and completed additional analysis to determine the full extent of the required off-site improvements north of the project site. The applicant subsequently submitted a request to amend the terms of the public benefit agreement including payment of a fee in lieu of undergrounding the utilities north of the project site and an amendment to artwork provisions.
Project Description
The applicant is requesting the City amend the public benefit portion of the conditions of approval for the hotel project that included a General Plan Amendment, Planned Unit Development (Rezoning) Concept Plan, Development Plan Permit, Architectural Review Permit, including adjustments to development standards and certification of an Environmental Impact Report. The approved project is a three- and four-story 155-room hotel (approximate 49 foot tall building with architectural features up to 59 feet tall) with associated parking, landscaping, and amenities on an approximately 2.5-acre site.
The applicant proposed the following financial contributions as a public benefit in the original proposal, as summarized below:
Onsite Artwork - $75,000 (maximum expenditure)
Library (Bridge) Contribution - $50,000
Affordable Housing Fund Contribution - $50,000
The project included additional project public benefits required by City Council as noted below:
Off-site undergrounding of utilities north of the project site Installation of a conforming sidewalk, curb and gutter, street lights and joint trenching west to Pleasant Valley Drive
The applicant is proposing modifications as summarized below:
Approved Architectural Condition of Approval 1.2a.
“Prior to building permit issuance, detailed plans for public art shall be submitted to the Architectural Review Commission for review and input prior to final approval by the Zoning Administrator, up to a limit of $75,000. The public art shall be completed/installed prior to building permit occupancy.”
The applicant proposes to modify the condition to read:
“Prior to building permit issuance, detailed plans for public art shall be submitted to the Architectural Review Commission for review and input prior to final approval by the Zoning Administrator, with a minimum expenditure of $25,000. The public art* shall be installed prior to issuance of a Certificate of Occupancy.”
* The public art is to be installed on the project site.
Approved Engineering Condition of Approval A.vii (Off-Site Improvements) – Portion of the Public Benefit.
“Applicant shall underground all overhead PG&E power lines along the project frontage along North Main Street. This includes the pole at the northeast corner of the property. The undergrounding to the north shall extend north of the Oak Park Boulevard overpass.” The applicant proposes to modify the condition to read:
“Applicant shall underground all overhead PG&E power lines along the project frontage along North Main Street, except for the pole at the northeast corner of the property.” The applicant proposes the following changes to the public benefit as part of this request:
Onsite Artwork - $25,000 (minimum expenditure)
Bridge (at Library) Contribution - $25,000
Affordable Housing Fund Contribution - $25,000
Off-site Utility Underground In-Lieu Payment - $425,000 The revised public benefit would remove the requirement to underground off-site utilities north of the site, but retain the original public benefit language related to installation of sidewalks, as noted:
Install a conforming sidewalk, curb and gutter, street lights and joint trenching west to Pleasant Valley Drive
Staff notes that City Council has full discretion regarding the future use of the proposed in-lieu fee for the off-site undergrounding. Further, in compliance with the proposed conditions of approval, the applicant will continue to underground utilities along the project frontage (North Main Street), except for a single pole at the northeast corner of the site. This pole will remain as there is no space opposite the Oak Park Boulevard spur (south of the Oak Park Boulevard overpass) to put a new pole, which necessitates the placement of the pole to the north of the Oak Park Boulevard overpass.
Analysis
The approved public benefit package requires the off-site undergrounding of utilities beneath the Oak Park Blvd. overpass – a process that involves lengthy, complicated permitting and coordination with the California Department of Transportation (Caltrans), a financial contribution to the City of $100,000, and a maximum expenditure of $75,000 for on-site artwork. Based on discussions with potential contractors, the applicant determined that the aggregate cost of the components of the project’s public benefit package jeopardizes project feasibility.
In exchange for relief from constructing the off-site undergrounding improvements to the north, the applicant is offering an additional financial contribution to the City. As currently proposed, the applicant would a) contribute $425,000 to the City in lieu of undergrounding utilities to the north of the site; b) contribute $25,000 for the library bridge project and $25,000 for affordable housing; and c) commit to a minimum expenditure of $25,000 for on-site public artwork. Compared to the total value of the adopted public benefit package, the revised proposal represents a combined value of $500,000. This amount is $325,000 more than the financial contribution that was part of the original project approval. These calculations do not account for the cost of installing a new sidewalk along the Oak Park Boulevard frontage, which remains a condition of approval. Staff believes the proposed contribution is sufficient to cover the cost to the City to underground the utilities offsite, though Council could determine how best to spend the funds.
Thus, Staff recommends the City Council approve the proposed public benefit modification and find that the proposed public benefit package is appropriate and acceptable.
FISCAL IMPACT
The City would receive a $475,000 payment that could be dedicated to various projects that benefit the public. Further, construction of a hotel onsite would generate transient occupancy tax revenue for the City in the future.
PUBLIC CONTACT
Public contact was made through mailing of the public meeting notice to those with 500 feet of the project site, posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the Resolution, approving the Development Plan and Architectural Review Permit amendment to modify the public benefit package and artwork contribution.
ALTERNATIVES TO RECOMMENDED ACTION
Continue the item to a later date with direction provided. Do not adopt the Resolution
ATTACHMENT(S):
A Proposed Resolution
B Applicant Information (including Development Plan Analysis) C Approved City Council Resolution No. 55-19
D September 16, 2019 City Council Staff Report (Plans in Attachment E, all other attachments available at the Planning Division
E Project Plans
F Public Notice
Prepared by: Troy Fujimoto, City Planner
Reviewed by: Ethan Bindernagel, Public Works and Community Development Director and Assistant City Manager
Approved by: June Catalano, City Manager