FOR THE COUNCIL MEETING OF NOVEMBER 19, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Acting City Manager Chuen Wu
BY: Interim Community Development Director Dana Eady
SUBJECT: Adoption of Resolutions and Introduction of an Ordinance for Richards Ranch Annexation, Pre -Zoning, and General Plan Amendment
Description:
The City Council will consider the Richards Ranch Annexation, Pre-Zoning, and General Plan Amendment project. The project site is 4 3.75 acres located at the southeast and northeast corners of the intersection of Highway 135 and Union Valley Parkway in the unincorporated Orcutt area of Santa Barbara County.
Environmental Notice: Environmental review for this project was completed through the preparation of an Environmental Impact Report (SCH# 2022020194) pursuant to the California Environmental Quality Act (CEQA) State Guidelines.
RECOMMENDATIONS:
1. Adopt a Resolution to certify an Environmental Impact Report making California Environmental Quality Act Findings, adopting a Statement of Overriding Considerations and adopting a Mitigation Monitoring and Reporting Program for the Richards Ranch Annexation, Pre -Zoning, and General Plan Land Use Map Amendment located at the northeast and southeast intersections of Union Valley Parkway and Highway 135; and
2. Adopt a Resolution approving an amendment to the General Plan Land Use Policy Map for approximately 43.75 acres located at the northeast and southeast corners of the intersection of Highway 135 and Union Valley Parkway; and
3. Introduce an Ordinance pre -zoning approximately 43.75 acres located in the unincorporated area of Santa Barbara County from Retail Commercial (C -2) to Planned Development/ General Commercial (PD/C-2) on 16. 35 acres, and Planned Development/High Density Residential (PD/R-3) on 27.4 acres; and
4. Adopt a Resolution approving an application initiating proceedings for the Richards Ranch Reorganization (AN2021-0001).
2 BACKGROUND:
The project site consists of four parcels totaling 43.75 acres located at the southeast and northeast corners of the intersection of Highway 135 and Union Valley Parkway (Attachment A, Vicinity Map). The property is within the unincorporated area of Santa Barbara County in the Orcutt Community Plan area and is east of the City of Santa Maria’s southeastern city limits and within the City’s Sphere of Influence (SOI). The property is identified in Santa Barbara County’s Orcutt Community Plan as “Key Site 26 (Richards)”.
The Orcutt Community Plan includes policies and development standards for developing the site in the County for future residential, open space, and retail commercial uses.
Surrounding land uses include single-family residential development to the north and south, high-density residential (apartments) to the east, and Highway 135 and residential development to the west.
The property is currently vacant and was most recently developed with a single -family dwelling located in the southwestern corner of the site and accessory structures. These structures were demolished in approximately 2010. Prior to the current property owner, the site was owned by Wal -Mart who had intended to develop the property with a n ew retail store. This development did not move forward as the property owner was not able to secure a source of supplemental water for the project as required by Golden State Water Company under the Santa Maria River Valley Groundwater Basin Stipulation.
Planning Commission Review
The project was presented to the City of Santa Maria Planning Commission at the July 18, 2024, study session. Commissioners discussed the proposed annexation request and directed questions to staff and the applicant regarding how services would be provided should the site be annexed. The public in attendance were provided time to share their comments and have their questions addressed regarding the project.
The Planning Commission then reviewed the project at the October 2, 2024 , public hearing. The public in attendance raised concerns regarding the proposed annexation request, specifically that any future development on the property would be under the City’s jurisdiction and not the County of Santa Barbara. Most commented that t hey did not oppose the future development of the site but some were concerned that future retail and residential development on the site would cause traffic impacts to Highway 135 and Union Valley Parkway, and overcrowding at area schools. After deliberati ons, the Planning Commission voted to recommend that the City Council approve the recommended actions to amend the land use designation and pre-zoning of the property and authorize the submittal of an application for annexation of the property to the Santa Barbara County Local Area Formation Commission (LAFCO).
DISCUSSION:
The project applicant, MD3 Investments, is requesting annexation of the 43.75 -acre property from the unincorporated area of Santa Barbara County into the City of Santa Maria city limits. The request also includes an application for a General Plan Amendment
3 and Pre-Zoning of the four parcels to allow for the future development of the southern portion of the property with residential uses (apartments and condos), and the northern portion with a retail commercial shopping center.
Annexation Request
The project site is currently located outside of the Santa Maria city limits but is within the existing SOI, as defined in the City’s General Plan Land Use Element. An SOI is a planning boundary that is outside of an agency’s legal boundary (i.e., the city limit line) and defines the agency’s probable future boundary and service area. For lands to be considered for annexation into a city, the land must be within the City’s designated SOI.
Annexation of the project site into the City is a formal municipal reorganization action that requires approval by LAFCO.
If the City Council certifies the Environmental Impact Report (EIR) for the project and initiates filing an application for annexation to LAFCO, the City as the lead agency would prepare the application. The application to LAFCO would include the purpose of the proposal, land use , and zoning information (existing and proposed), conformity with County and Cit y General Plans and SOI, a plan for providing services including water supply, and any impacts to open space and agriculture that could occur from the proposal.
Before the LAFCO executive officer can issue a certificate of filing and schedule the proposal for LAFCO consideration, the City of Santa Maria, Santa Barbara County, and any affected special districts are required to negotiate the allocation of property tax revenues during a mandatory negotiation period . If an agreement i s not reached, an alternate negotiation, mediation, and arbitration process is required. Once an agreement is reached, the executive officer may issue a certificate of filing which is a pre -condition to LAFCO’s consideration of the application for annexation.
In their review of the application, LAFCO may approve, conditionally approve, or deny the proposed annexation. The factors that LAFCO must consider in reviewing annexation proposals include, but are not limited to, population density, the need for or ganized community services, the effect of the proposed action on adjacent areas, conformity with LAFCO policies on providing planned, orderly, efficient patterns of urban development, consistency with the General Plan, and the ability to provide services, including water supply.
Proposed Services
The project site is located within the service area of Golden State Water Company (GSWC) and the Laguna County Sanitation District (LSCD). Water and Wastewater services to the site would therefore continue to be provided by GSWC and LCSD, respectively. GSWC and LCSD have provided letters stating that they can and will be able to provide services to the future development of the property, subject to compliance with specified conditions.
4 In order to obtain water from GSWC, the applicant is required to provide a source of supplemental water to offset the increased water demand, pursuant to the Court adopted Stipulation in Santa Maria Valley Water Conservation District v City of Santa Maria, et al. (and related actions)1. The City of Santa Maria is a provider of supplemental water, and applicants may apply to the City to purchase supplemental water through a Supplemental Water Agreement.
The decision to sell supplemental water is at the discretion of the City . In the past, the City has elected to not provide supplemental water to the subject property, most recently in 2006 when Wal-Mart owned the property. While annexation of the project site is not a prerequisite to or a requirement for the applicant’s ability to purchase supplemental water from the City, the City typically would provide supplemental water to the property if it were located within city limits . GSWC, which has existing water lines adjacent to the project site underneath Orcutt Road, would then deliver water to the site. Any improvements to the existing water or sewer lines or construction of new water or sewer lines would be the responsibility of the developer of the property.
Fire protection services would be provided by the City of Santa Mari a from Fire Station No. 6 located at 3339 Terminal Drive (Santa Maria Airport). This station is planned to be equipped with a fire engine and additional staffing to be fully operational to serve areas of the City and county beyond the airport property. The Santa Barbara County Fire Department would remain available to provide fire services to the property under the mutual aid agreement with the City of Santa Maria. Police services would be provided by the City of Santa Maria. Any future students would atten d schools within the local area, including the Orcutt School District or private schools. The developer would be required to pay fees to the public school district to offset the impacts associated with increased students generated by the project.
Pre-Zoning and General Plan Amendment Request
Pre-zoning is a required component of the annexation process. California Government Code Section 65859 allows the City to adopt (i.e., pre-zone) a zoning designation for land outside its city limits in anticipation of annexation and development. Under the code provisions, the zoning designation adopted by the City would not become effective unless the property were to be annexed to the City.
The County currently has the entire 43.75-acre site zoned as C-2 (retail commercial). The request by the applicant includes the pre-zoning designations of General Commercial (C- 2) on 16.35 acres of the site and High Density Residential (R -3) on the remaining 27.4 acres. The sites would also be located within the Planned Development (PD) Overlay District, which is designed and intended to provide for the orderly development of land in conformance with the City’s General Plan.
The proposed pre -zoning designations would accommodate a range of potential land uses, as listed below.
1 Lead Case No. CV 770214, Superior Court of the State California, County of Santa Clara, in January 2008, and Commission Decision No. 13-05-011.
5 General Commercial (C-2): This designation is intended to provide for general commercial and retail outside the central core, particularly along lineal development corridors. Permitted uses include retail uses and service establishments, such as clothing stores, department stores, home improvement centers, furniture sales, secondhand sales, banks and financial institutions, commercial and professional offices, restaurants, physical fitness centers/health clubs, auto repair shops, blueprint shops, dental laboratories, medical clinic s, hotels and motels, light equipment rentals, and beauty shops. High Density Residential (R-3): This designation is intended to provide for an urban residential environment, preferably close to shopping facilities and existing activity centers, as well as provide an incentive for reinvestment in older established areas.
Permitted uses include single -family dwellings, duplexes, tri plexes, and larger multi-family complexes, small family day care homes, with an overall density not to exceed 22 dwelling units per acre. Senior citizen housing may also be permitted to a maximum density of 30 dwelling units per acre.
Planned Development (PD) Overlay District: This overlay district designation is intended to accommodate various types of development such as neighborhood and district shopping centers, professional and administrative office complexes, multiple housing developments, single -family residential developments, commercial service centers, and light industrial parks or any other use or combination of uses which can be made appropriately a part of a total planned development, in accordance with the City General Plan and any applicable specific plan.
The current County General Plan land use designations for the project site is General Commercial/Office and Professional/Planned Development -3.3, which is intended for mixed-use development with a maximum of 3.3 dwelling units per acre. Since the project site is located within the City’s planning area and SOI, it is also identified for planned development by the City. The City currently provides a land use designation of Commercial/Professional Office for the site, which allows for office de velopment for medical, legal, travel agencies, insurance, and real estate services, as well as a complementary mixed-use including residential and commercial uses.
With the proposed development scenario and proposed pre-zoning, the City would need to also amend the General Plan land use designation for the site. For this reason, the project also includes a General Plan amendment to apply a Community Commercial (CC) land use designation on 16.35 acres of the site and High Density Residential (HDR -22) for the remaining 27.4 acres.
Conceptual Development Plan
A conceptual plan for future development of the project site has been prepared to evaluate potential environmental impacts of the eventual development of the site if the proposed annexation and pre-zoning were to be approved. The plan, included as Attachment B to this report, shows the potential future development that could occur consistent with the project’s proposed pre-zoning designations. This includes a buildout of 106,800 square- 6 feet of commercial uses and a 39,500 -square-foot mini-storage complex on 16.35 acres of the project site and 400 apartments and 95 townhomes on the remaining 27.40 acres.
The commercial uses would be concentrated on the frontages of U nion Valley Parkway (UVP) and SR 135, with site access available via Orcutt Road and U VP. The northern portion of the project site (north of UVP) would support most of the proposed commercial uses, allowing for up to 96,800 square feet of commercial development. This development scenario assumes a drive-through commercial space northeast of the intersection at SR 135 and UVP, as well as a retail center, corner gas station, and mini-storage facility east of Orcutt Road on the northeastern portion of the project site. Additional commercial uses at the southwestern portion of the site are anticipated t o accommodate up to two drive - through commercial sites, totaling a maximum of 10,000 square feet. High -density residential uses would be located in the southeastern portion of the project site (south of UVP and east of Orcutt Road) and would include up to 400 apartments with common park space, and 95 townhomes.
Future project buildout of any of these uses within the project site would require individual Planned Development Permit applications for the development of each of the proposed residential and commercial projects. These applications would be reviewed by the City at the time they are received to ensure they are consistent with the zoning and have been adequately evaluated under CEQA. The applications would be under the discretion of the City of Santa Maria Planning Commission.
Alternative(s)
The City Council may summarily deny the project. This action would cause the subject property to remain as is, located within the City’s SOI boundary, under Santa Barbara County jurisdiction.
Environmental Review
An Environmental Impact Report (EIR) has been prepared for the proposed project (State Clearinghouse No. 2022020194). The Draft EIR was circulated for public review from December 22, 2022, to March 7, 2023. The City received over 100 public comments on the Draft EIR including, but not limited to, letters from Santa Barbara County (Planning and Development, Fire Department, Public Works Transportation Division, Air Pollution Control District), LAFCO, CA Dept. of Fish and Wildlife, and CalGEM. The EIR is included in this report as Attachment C.
Following the release of the Draft EIR, new information was obtained regarding the monarch butterfly and overwintering habitat for the species. For these reasons, the City determined that the portions of the Draft EIR related to Biological Resources and Project Alternatives should be revised and recirculated for public comment. The partially recirculated EIR was released for a 45 -day public comment period from January 31 to March 15, 2024. At the completion of t he public review period, the City received six additional comment letters. All of the comments received on the Draft and partially recirculated EIR have been reviewed and addressed in the Response to Comments section of the EIR.
7 Mitigation Measures were developed to address potential project impacts in the topic areas of Air Quality and Greenhouse Gas Emissions, Biological Resources, Cultural Resources, Energy, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Wate r Quality, and Noise. The Mitigation Monitoring and Reporting Program is provided as Attachment F to this staff report.
The EIR identifies significant and unavoidable (Class I) impacts to Biological Resources resulting from the future buildout of the property. This is due to its potential to impact the monarch butterfly through the removal of a stand of eucalyptus trees on the property that is identified by the Xerces Society as an overwintering site for the monarch butterfly. The Statement of Overriding Considerations addressing this impact is provided as Attachment E.
Fiscal Considerations
If the City Council initiates proceedings to file an annexation application to LAFCO, a comprehensive fiscal analysis would be prepared as a part of the application. Additionally, the City of Santa Maria, Santa Barbara County, and any affected special districts are required to negotiate the allocation of property tax revenues , and any other items identified, during a mandatory negotiation period . The full costs of developing the property, including roadway and frontage improvements, and installation of utilities would be the responsibility of the developer.
Impact to the Community
The annexation of the property into the City of Santa Maria would allow the vacant property to be provided with the services needed to develop the site with new retail and residential uses that would serve the region. Future development of the site will be subject to the mitigation measures in the Environmental Impact Report to reduce potential noise, traffic, lighting, and associated impacts to adjacent residential neighborhoods .
Discretionary permits (ex. Planned Development Permits) for future development would be reviewed in public hearings by the City’s Planning Commission.
ATTACHMENTS
A. Vicinity Map
B. Conceptual Development Plan
C. Environmental Impact Report
D. CEQA Findings
E. Statement of Overriding Considerations
F. Mitigation Monitoring Program
G. Existing and Proposed General Plan Land Use Designations H. Pre-zoning Designations
I. Legal Descriptions