CED AGENDA: 5/20/24
FILE: CC 24-356
ITEM: (d)4
TO: COMMUNITY AND ECONOMIC FROM: Chris Burton
COMMITTEE
SUBJECT: COYOTE VALLEY CORRIDOR DATE: May 6, 2024
STUDY STATUS UPDATE
RECOMMENDATION
Accept the status report on the Coyote Corridor Study process, which explores flexibility on nonresidential land uses on the east side of Monterey Highway and uses that would be compatible with the agricultural and open space uses along the corridor.
BACKGROUND
Historically, Coyote Valley served as an urban reserve for the City of San José. Starting in the 1960 General Plan, the City planned for industrial growth in North Coyote Valley, and prerecession plans envisioned the future development of 50,000 jobs and 25,000 housing units for the area. The Envision 2040 General Plan, adopted in 2011, continued to designate Mid-Coyote Valley as an urban reserve not planned for development through 2040.
In 2019, the California State Legislature recognized the region as an area of statewide significance through the adoption of Assembly Bill 948 – Coyote Valley Conservation Program.
Assembly Bill 948 recognized Coyote Valley as “a unique landscape providing agricultural, wildlife, recreational, climate, and other natural infrastructure benefits.” Furthermore, in 2021, as part of the recommendations from the General Plan Four-Year review process, the City Council voted to change the General Plan and Zoning designations of properties within Coyote Valley to agriculture to protect the region from future urban development.
Coyote Valley serves as a significant wildlife and open space resource, particularly marked by the habitat it provides to several varieties of threatened or endangered species, as well as the access it provides to wildlife migration between the Santa Cruz Mountain Range and the Diablo Mountain Range. The area has also served as the City of San José’s last remaining productive agricultural area.
The properties east of Monterey Road are unique in comparison to the agricultural lands to west of Monterey Road, which interfaces with the rail line, creek, and freeway, all of which create barriers for wildlife and traffic circulation. Many properties are developed with nonagricultural uses. Property owners in the area have expressed that traditional/historic agriculture Approved Date 5/10/24
COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
May 6, 2024
Subject: Coyote Valley Corridor Study Status Update
uses along the corridor have faced significant challenges over the years.
The City’s existing agricultural and open space development regulations do not adequately address modern farming operations and only allow a limited number of other compatible uses.
The objective of the Coyote Valley Corridor Study (Study) is to analyze existing and potential new uses for the properties located along the east side of Monterey Road in Coyote Valley that are compatible with or in direct support of the region’s agriculture and open space resources. The Study will recognize that the distinct character of this portion of Monterey Road in Coyote Valley could potentially support uses that are more industrial or commercial in nature that would not otherwise be appropriate in the other agricultural zones within the City boundaries.
There are a total of 188 properties within the Study area; however, only 63 are incorporated into the City. Therefore, any new uses and standards will only apply to those properties within the City. Attachment A provides a map of the Study area. The Study area is a 2,415-acre, northsouth running corridor located in Coyote Valley. It is bounded by Metcalf Road in the City of San José to the north, U.S. Highway 101 to the east, the City of San José/City of Morgan Hill border to the south, and Monterey Highway (California State Route 82) to the west. The area includes an approximately 11-acre strip of land just south of Blanchard Road to the east and west of Monterey Highway known as “Coyote Hamlet” shown in Figure 1-1. The Study area is generally located on the eastern side of Coyote Valley and represents approximately 33% of the total land area of Coyote Valley.
Jurisdiction Total Parcels Area in Acres % of Total Study Area in Acres
San José 63 906.8 37%
Santa Clara County 125 1517.1 63%
Total Land Area 188 2,423.9 100%
The Study was directed by the City Council at its November 16, 2021, meeting (21-2387) 1 .
The result of the Study will inform future proposed amendments to the General Plan as to allowed uses and development regulations contained in the General Plan and the Zoning Ordinance. Modernizing the agricultural and open space zoning regulations will provide better distinction between the ways that agriculture and open spaces function in the City’s urban, peri-urban, and rural areas.
ANALYSIS
The overarching goal of the Study is to analyze existing and potential land uses that are 1 City of San José - File #: 21-2387 (legistar.com)
COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
May 6, 2024
Subject: Coyote Valley Corridor Study Status Update
compatible with or in direct support of the region’s agriculture and open space resources for the properties located along the east side of Monterey Road in Coyote Valley. The result of the assessment will inform future amendments to allowed uses and development regulations for agriculture in the General Plan and the Zoning Ordinance. The Study will recognize the distinct character of this portion of Monterey Road and Coyote Valley as potentially supporting uses that are more industrial or commercial in nature and would not otherwise be appropriate in the other agricultural zones within city boundaries or spheres of influence.
The Study includes the following components:
• A baseline assessment of the Study area: The baseline assessment is intended to establish the history and objectives of the Study and provide an overview of existing regulatory, physical, economic, and environmental conditions in the Study area. The baseline analysis also helps to understand how the Study area fits in relation to the surrounding agricultural and open space lands of Coyote Valley. Attachment B provides the draft baseline assessment.
• An economic/land use study of the area: The economic/land use assessment serves as a catalog of potential land uses to supplement or replace current land uses allowed on parcels in the Study area. This document includes examples of successful operations of potential uses, primarily commercial and recreational, that complement the surrounding agricultural and open space character. Attachment C provides the draft economic/land use report. • Regulations for design and development standards: This work is yet to be completed but will include recommendations for updates or new standards related to height, setbacks, building intensity, lighting, etc. The proposed regulations will also be discussed in the environmental review process.
• An environmental review, which is anticipated to be an Environmental Impact Report (EIR).
Extensive stakeholder and community outreach is included in each phase of the Study.
Attachment D provides a synopsis of feedback from the focus groups. The project timeline for the Study has been adjusted since the project was initiated on May 11, 2023. Originally, staff projected that the Study would be completed by the end of 2024; however, there were early delays in the project that set the schedule back. This was in part because the baseline assessment took longer to complete than expected. Additionally, work on the EIR has not been initiated due to finalizing the contract between the City and the consulting firm. Listed below is a breakdown of the project tasks that have been completed to date, as well as the remaining uncompleted tasks.
Project Milestones/Timeline
• Project Initiation (including Internal Kick-off Meeting) - Completed • Initial Outreach (including Public Meeting #1) - Completed • Draft Baseline Assessment: Data Collection and Analysis of Existing Conditions – Completed
COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
May 6, 2024
Subject: Coyote Valley Corridor Study Status Update
• Draft Land Use and Economic Assessment - Completed
• Selection of Preferred Uses and Strategies (including Public Meeting #2) – In Progress/Partially Complete
• Development and Design Regulations (to be completed in fall 2024) • Draft Final Report (to be completed in fall 2024)
• Initiate Project EIR July/August 2024, with expected completion in July 2025 • Public Meeting #3 (to be completed within two months after completion of the EIR)
• Public Hearings (to be completed within two months after completion of Public Meeting #3)
Project Outreach
• First round of Stakeholder Focus Groups (virtual)
o Property Owners Tuesday, June 6, 2023, at 10:00 a.m.
o Business Owners Tuesday, June 6, 2023, at 12:00 p.m.
o Community Advocates Thursday, July 7, 2023, at 12:00 p.m.
To begin the outreach process, stakeholder groups were engaged in separate focus group meetings to express and identify their core objectives for the Study. The property owner group had 25 participants, the business owner group had seven participants, and the community advocates group had 11 participants. The outcome of these meetings allowed staff to understand more deeply the varying and sometimes competing objectives of the stakeholder groups, with some asking for higher intensity development to effectively increase property values and others asking for little or no development to preserve the open space nature of the Study area.
• Second Stakeholder Focus Group (in-person workshop)
Date: Thursday, February 1, 2024, 5:30-7:30 p.m.
Location: Southside Community Center, 5585 Cottle Rd. San José, CA 95123 The workshop was designed to bring various stakeholder groups together for an in-person meeting to discuss a desired overall land vision for the Study area and preferred land uses for various parts of the Study area. Approximately 30 stakeholders participated in the workshop. Attendees were randomly assigned to one of four tables, where discussions between six and seven participants were facilitated by a Study project team member.
Participants were asked to discuss their preferences for the overall outcome of new land use in the Study area and characteristics of future development in the Study area.
COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
May 6, 2024
Subject: Coyote Valley Corridor Study Status Update
Additionally, participants were asked to rank their top potential new land uses for the Study area: outdoor recreation, overnight lodging, dining, private event space, indoor recreation, and agritourism were named as some of the top land uses for the Study area.
Some property owners expressed concerns about the limited financial feasibility of many of the uses that are being considered. Community advocates emphasized the need for any future uses to be designed to minimize environmental impacts. • Third Stakeholder Focus Group (virtual)
Date: Thursday, April 25, 2024, 5:30-7:30 p.m.
The objective of the meeting was to preview findings from the draft economic/land use assessment which analyzed consistency with General Plan land use policies in conjunction with the stakeholder comments received during the second focus group. The various uses received scores and were described as either being consistent, partially consistent, limited consistency, or inconsistent. It was difficult to distill any consensus from the group, because participants expressed that the intensity of uses played a significant factor in whether they would support the use being introduced into the Study area. In total, the focus group had 16 participants, with a mix of property owners, business owners, and advocates.
• Community Meetings
First public Community Meeting
Date: August 28, 2023, from 6:00-8:00 p.m.
Location: Virtual meeting and in-person viewing event at the Coyote Creek Golf Club.
The focus of this meeting was to introduce the Study and outreach process to the public and to get general feedback. The comments received from the public were highly varied, ranging from some who were concerned about wildlife and environmental protection and did not want to see any development, to others who advocated for housing and other more intense land uses throughout the Study area. There were 50 participants in total for this meeting, including both in-person and virtual attendees.
Second Community Meeting (in person)
Date: May 2, 2024, from 6:00-8:00 p.m.
Location: Southside Community Center, 5585 Cottle Rd. San José, CA 95123 The focus of this meeting was to present general project updates to the public and to get feedback on the draft land use/economic assessment. This meeting was conducted in an open-house format. The potential uses under consideration were presented on a series of posterboards and participants were asked to rank each with a letter grade of A through F, representing whether they perceived each use as being appropriate and consistent with the goals of the Study. There was a total of 21 participants for the meeting and comprised mostly of property owners within the Study area and representatives from environmental agencies and interest groups. The feedback was highly varied, suggesting a lack of
COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
May 6, 2024
Subject: Coyote Valley Corridor Study Status Update
consensus amongst stakeholders and the public regarding the uses which may potentially be allowed in the Study area. One category of land uses that stood out as receiving generally positive support was the Regional Destination category. For example, Nature Based Education Centers, Agricultural Exhibits and Education, and Farmers’ Markets and Food Stands each received positive feedback. While more intensive uses in the category, such as Outdoor Amphitheaters and Flea Markets, received less support.
Conclusion
Approximately half of the tasks for the Study are complete, although the environmental review has yet to commence. The remaining work for the Study will be centered on the environmental review process and creating development and design standards for the new uses that will be allowed in the Study area. Several meetings with various stakeholders and the general public have taken place thus far, and additional outreach will occur as part of the future phases of the Study. The California Environmental Quality Act (CEQA) analysis will kick off in summer 2024 and is anticipated take approximately one year to complete.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office. /s/
CHRIS BURTON
Director, Planning, Building, and Code
Enforcement
The principal author of this memorandum is Brent Carvalho, Planner/Project Manager. For questions, please contact Martina Davis, Division Manager, at [email protected] or (408) 535-7888.
ATTACHMENTS:
Attachment A: Study Area Maps
Attachment B: Baseline Assessment
Attachment C: Land Use/Economic Assessment
Attachment D: Focus Group Synopses