Agenda Item: 1
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: May 13, 2025
SUBJECT: NEWHALL MIXED USE (MASTER CASE 24-134) - CONTINUED DEPARTMENT: Community Development
PRESENTER: Erika Iverson
RECOMMENDED ACTION
City Council:
1. Continue the public hearing.
2. Determine that the project is exempt from additional review under the California Environmental Quality Act as the project was contemplated and will comply with all mitigation measures established under the Old Town Newhall Specific Plan Final Environmental Impact Report.
3. Adopt a resolution approving Master Case 24-134 (Conditional Use Permit 24-007, Minor Use Permit 24-015, Adjustment Permit 24-005, Architectural Design Review 24-017, and Development Review 24-012) for the construction of a new five-story, mixed-use building and demolition and delisting of the Masonic Lodge/Courthouse building at the corner of Main Street, Market Street, and Railroad Avenue, subject to the attached Conditions of Approval (Exhibit A).
BACKGROUND
Request
The proposed project is a request by Serrano Development Group, for a Conditional Use Permit (CUP), Minor Use Permit (MUP), Adjustment Permit (ADJ), Architectural Design Review (ADR), and Development Review (DR) for the redevelopment of the project site into a new five- story, mixed-use project and demolition of the Masonic Lodge/Courthouse building located at 24300, 24308, 24316 Main Street and 22505 Market Street (Assessor’s Parcel Numbers 2831- 012-022 through -026), within the Arts & Entertainment (AE) zone of the Old Town Newhall Specific Plan (OTNSP).
Planning Commission Hearing
On March 18, 2025, a public hearing was held before the Planning Commission. After receiving the staff presentation, testimony from the applicant and members of the public, the Planning Commission approved a resolution recommending the City Council approve the project with additional conditions of approval. A copy of the Planning Commission staff report is available in the City Clerk’s Reading File.
City Council Hearing
On April 22, 2025, the City Council held a public hearing during which it received the staff presentation, opened the public hearing, and received comments from the applicant and members of the public. Public comments in support of the project generally expressed support for housing and commercial development in Old Town Newhall. Public comments of concern on the project included concerns regarding parking, potential construction noise impacts to the neighboring KHTS Radio Station building, and the demolition of the Masonic Lodge/Courthouse building.
Following deliberation, the City Council voted to continue the item to May 13, 2025, with the comment portion of the public hearing remaining open. The City Council expressed that additional time was needed for the applicant to reach an agreement with the owners of the neighboring KHTS Radio Station, and that additional time was needed to review documentation that was provided by the applicant on April 22, the day of the meeting, which included:
1. A feasibility analysis and cost estimate, prepared by Pacific Empire Builders, for the relocation of the historically designated Masonic Lodge/Courthouse.
2. A technical memorandum, prepared by Westside Acoustics, regarding construction noise.
The City Council also asked the applicant to work with the Council on additional architectural refinements, and to ensure that the Railroad Avenue building elevation be designed to ensure traffic safety.
Applicant Letter of April 28, 2025
Following the City Council hearing, the applicant has continued discussion with the neighboring KHTS Radio Station to address the concerns. As a result of the discussions, the applicant has submitted an alternative proposal for a monetary contribution to the City to address the demolition of the Masonic Lodge/Courthouse building. Their original proposal was a contribution to the City of Santa Clarita (City) of $750,000 for future historic preservation efforts. As outlined in the attached applicant letter dated April 28, 2025, their alternative proposal is a contribution to the City of $300,000 for future historic preservation efforts, as they work with KHTS to address construction noise impacts.
The staff recommendation continues to be the proposal as originally presented, with a contribution in the amount of $750,000 to the City for future historic preservation efforts, which is the recommendation made by the Planning Commission. If the City Council decides to accept
the revised proposal by the applicant, the Council should direct staff to modify the applicable draft Condition of Approval (PL 7) and include the revised contribution amount in a motion to approve the project.
Separately, the property owner of the Masonic Lodge/Courthouse building received a $22,440 grant (Grant) from the City for building maintenance in 2015. The grant funds would be required to be repaid to the City’s General Fund if the building were to be demolished. If approved, the applicant’s contribution would include repayment of the grant.
Applicant Letter of May 7, 2025
The applicant submitted a second letter, requesting and offering their consent to the addition of a Condition of Approval that would place limitations on the hours of construction for drilling soldier piles and placing garage shoring, such that these activities would not occur within 20 feet of the KHTS Radio Station property line between the hours of 7:00 a.m. and 8:00 a.m., as outlined the attached applicant letter dated May 7, 2025.
If the Council decides to incorporate this as a Condition of Approval, the Council should direct staff to include the additional condition in a motion to approve the project.
Pacific Empire Builders - Historic Building Relocation Feasibility Assessment
A feasibility assessment by Pacific Empire Builders for the potential relocation of the Masonic Lodge/Courthouse building was submitted by the applicant and is provided as an attachment to the agenda report. The scope of the assessment covers a potential relocation route and the technical components associated with demolition, separation, transport, site preparations, and reassembly of the historic building. In their assessment, Pacific Empire Builders outlines an estimated cost of $2.98 million to $4.04 million for relocation efforts of the Masonic Lodge/Courthouse building and recommends against relocation efforts for reasons of engineering difficulty, public infrastructure impacts, and potential risks to the preservation of the historic integrity of the building.
Westside Acoustics - Construction Noise Review
The applicant provided an evaluation of the expected construction noise levels for the proposed project, prepared by Westside Acoustics. Westside Acoustics relied on a 2016 acoustical analysis that was prepared for a previous project at Lyons Avenue and Railroad Avenue to evaluate existing noise exposure. Their assessment evaluated the existing noise exposure in the vicinity and the expected project construction noise exposure to provide a comparison. Westside Acoustics determined that the noise level exposure to the radio station, due to construction activities, was comparable to the noise levels that currently exist due to current train activities.
Assembly Bill 2097
In addition to the items that the City Council requested of the applicant, there was discussion and questions by the City Council on the provided parking and the application of Assembly Bill (AB) 2097. Under AB 2097, the City cannot require parking minimums unless the City can make
written findings, within 30 days of the receipt of a completed application, that not imposing or enforcing minimum automobile parking requirements on the development would have a substantially negative impact, supported by a preponderance of the evidence in the record, on the City’s ability to meet its share of specified housing needs or existing residential or commercial parking within one-half mile of the housing development.
In order to assess the parking proposed by the project, the applicant was required to submit a parking demand study. The parking study provided for this project compared the parking demand for similar projects, in relation to the available parking in Newhall. The study concluded that the project, with the onsite parking as proposed, and payment of the in-lieu fee, would not have a negative impact on residential or commercial parking, and therefore would be sufficient for the project.
Separately, the City conducted a parking study of the Old Town Newhall Specific Plan area in 2015, and re-evaluated that study in 2022. The City’s survey evaluated the available public and private parking supply within the entire 22-block OTNSP and it evaluated the parking supply in the 15-block Main Street subarea. Based on the focused Main Street subarea analysis that was evaluated in 2022, there is an existing parking supply that exceeds the peak parking demand, leaving a surplus of 197 spaces.
The applicant’s parking demand study was reviewed in light of the City’s existing parking study and reviewed by the City’s Traffic Engineering division for methodology. The findings of the applicant parking demand study are consistent with the City’s previous analysis of the parking demand and supply in the Main Street subarea. As a result of this analysis, no written findings were provided to the applicant requiring more parking than set forth in the applicant’s study within the thirty (30) days after the applicant’s application was deemed complete. Therefore, under AB 2097, the City cannot require parking above that proposed by the applicant.
As new developments come forward, City staff will continue to track the parking supply. New projects relying on AB 2097 for reduced parking will be required to evaluate their project parking demand and provide project parking accordingly.
Project Height
There was some discussion about the height of the project. This project is subject to the provisions of the State Housing Accountability Act (“HAA”). A housing or mixed-use project that is consistent with the objective standards in the City’s Municipal Code must be approved.
Further, under the HAA the City must notify an applicant of any standards that the project does not meet within thirty (30) days of the project application being deemed complete. If no notice is given by that deadline, the project is deemed consistent with the City’s objective criteria.
The 55-feet height for this project is based upon an interpretation that this project, which spans the whole block of Market Street, between Main Street and Railroad Avenue, constitutes a whole block development, consistent with the prior approval of the Newhall Crossings project; accordingly, no notice of height inconsistency was provided to the applicant within thirty (30) days of the project application being deemed complete. Therefore, in addition to consistency with the prior interpretation of the specific plan, the project is also deemed consistent with the
height requirements under the HAA.
CONCLUSION
The Newhall Mixed-Use Project is consistent with the provisions outlined in the General Plan, Santa Clarita Municipal Code, and Old Town Newhall Specific Plan. The applicant’s commemoration proposal for the historic building is consistent with the City’s Historic Preservation Ordinance and mitigation measures in the OTNSP Environmental Impact Report.
Therefore, Planning Commission recommends the City Council adopt a resolution approving Master Case 24-134 (CUP24-007, MUP24-015, ADJ24-005, ADR24-017, and DR24-012) for the construction of a new five-story mixed-use building and demolition and delisting of the Masonic Lodge/Courthouse building at the corner of Main Street, Market Street, and Railroad Avenue, subject to the attached Conditions of Approval (Exhibit A).
As of the writing of this agenda report, one additional comment letter from the property owner of the Masonic Lodge/Courthouse building has been received and is provided as an attachment.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
There is no impact to the General Fund. The applicant would be required to pay various development impact fees, including, but not limited to, Bridge and Thoroughfare and park dedication (Quimby) fees. Upon receipt of a monetary contribution, $22,440 would be deposited into the General Fund (Fund 100) for historic preservation grant repayment, and the remaining money would be deposited into the Site Improvement Fee Fund (Fund 431) to support local historic preservation efforts.
ATTACHMENTS
Resolution
Aerial and Zoning Map
Site & Floor Plans
Elevations & Renderings
Parking Demand Study
Historical Society Letter
Proposal for Demo of Historic Resource
Pacific Empire Builders - Historic Building Relocation Feasibility Assessment Westside Acoustics - Construction Noise Review
Applicant Letter to Amend Proposed Contribution
Applicant Letter to Request Additional Condition of Approval Comment Letter
CEQA Notice of Determination
MC24-134 Prior Hearing Documents (available in the City Clerk's Reading File) Public Notice (available in the City Clerk's Reading File)