CITY OF SIMI VALLEY
MEMORANDUM
M
ay 19, 2025
T
O: City Council
F
ROM: Department of Environmental Services
S
UBJECT: A PUBLIC HEARING TO CONSIDER A GENERAL PLAN AMENDMENT PRE-SCREENING REVIEW OF GPPS-2025-0001 (STEELWAVE, LLC), A
REQUEST TO CHANGE THE GENERAL PLAN LAND USE
DESIGNATION FOR PORTIONS OF THE MALL DISTRICT WITHIN THE
SIMI VALLEY TOWN CENTER SPECIFIC PLAN FROM GENERAL
COMMERCIAL TO HIGH DENSITY AND VERY HIGH DENSITY
RESIDENTIAL TO MAKE THE DISTRICT A HORIZONTAL MIXED -USE SITE FOR A SITE LOCATED AT 1555 SIMI TOWN CENTER WAY
STAFF RECOMMENDATION
I
t is recommended that the City Council review the request and consider authorizing GPPS-2025-0001 for further processing as a formal General Plan Amendment to change the General Plan land use designation for portions of the Mall District within the Simi Valley Town Center Specific Plan from General Commercial to High Density and Very High Density; and , if authorized, direct the applicant to address specific City Council requests and comments raised by the City Council at the Public Hearing; I
t is noted that Staff’s analysis is based on the proposed Land Use designations requested by the applicant . The report does not address project design, architecture, layout, aesthetics, residential unit type, affordability options, or impacts related to the physical design that may accompany a future General Plan Amendment request.
BACKGROUND AND OVERVIEW
G
regory Hall, on behalf of Steel Wave LLC , requests General Plan Amendm ent Pre - screening (GPPS -2025-0001). The request is to change the General Plan l and use designation for portions of the Mall District within the Simi Valley Town Center (SVTC) Specific Plan from General Commercial to High Density and Very High Density Residential. As a result of this proposed change, significant portions of the Town Center would become zoned for multi- family residential uses and result in the elimination of commercial zoning in portions of the Town Center.
If
authorized to proceed, the Applicant may file a formal application for a General Plan Amendment anytime during a one-year period following the Pre-screening hearing. If not authorized to proceed, the Applicant may not re-apply for Pre-screening within 12 months from this hearing date.
T
he areas proposed for change are located in the Mall District of the SVTC Specific Plan between Jefferson Way and Simi Town Center Way. The subject site has a General Plan AGENDA ITEM NO.
5A
designation of General Commercial. The nearest Very High Residential designated area is the Meadowood apartment complex, approximately 500 feet to the southeast, across State Route 118 (“118 Freeway”). The nearest High Density Residential designated area is approximately 750 southwest of the Mall District, at the First Street/118 Freeway onramp (Figure 1) . Note that the 500 unit Avalon Apartments within the ‘Residential District” of the SVTC Specific Plan has a General Plan designation of General Commercial though the Specific Plan designation is equivalent to Very High Density Residential.
Figure 1 – Project site
The Simi Valley Town Center Specific Plan is a comprehensive master plan for the site with separate residential, commercial, office, and fitness use areas. The following outlines the various sub-zones in the SVTC Plan (Figure 2) and the proposed area of work (Figure 3):
• Mall District (M)
The Mall District is an area of approximately 44.7 acres situated in the south central portion of the site adjacent to the 118 Freeway. This area consists of a regional shopping center with a 593,000 square foot pedestrian mall. This area consists of retail and service businesses on a single site that is anchored by two or more department stores, located around and oriented toward a common pedestrian area.
2 • Town and Country District (TC)
The Town and Country District encompasses approximately 25.6 acres located to the west of the Mall District and bounded on the south by the 118 Freeway and First Street on the west. This area consists of big-box retail.
• Residential District (R)
The Residential District comprises an area of approximately 23.5 acres situated in the north central portion of the Town Center, adjacent and directly north of the Mall District. This area consists of 500 apartment units.
• Gateway District (GW)
The Gateway District is approximately 9.2 acres located to the east of the Mall District and bounded on the south by the 118 Freeway and on the east by Erringer Road. In addition to the existing athletic club located in the northeast portion of the district, development consists primarily of retail and commercial office uses.
Figure 2 – SVTC Specific Plan Sub-zones
Current SVTC Development
The Mall District of the SVTC Specific Plan was built with approximately 593,000 square feet of leasable space with two anchor tenants, both of which are currently vacant . The Mall District includes three free- standing buildings with the potential for two more.
Restaurant space was added in 2014, including a Studio Movie Grill theater. The western ‘keyhole’ parking area, façade remodels, and the addition of a drive-through coffee house occurred in 2016. Changes on the site since then have been limited to minor façade modifications and additions of wayfinding signage.
Proposed Changes to SVTC
The proposed land use changes within the Mall District are shown in Figure 2. The changes would encompass the parking lot areas on the east and west, the eastern anchor tenant space and retail areas on the north side of the site, adjacent to East Jefferson Way.
3 Figure 3 – Proposed changes to the Mall District
The land use designation for the portions designated parcels A, B and C (12.25 acres) are proposed to be changed from General Commercial to Very High Density residential.
Parcel D (3.5 acres) is proposed to be changed to High Density. Note that the applicant’s designations and densities included in Exhibit 1 do not correspond to the City’s General Plan l and use designations and densities. The above exhibit depict the General Plan designations that would be required to accommodate the density ranges the applicant is proposing. The purposes of the existing and proposed General Plan land use designations are detailed below.
General Commercial
General Commercial centers shall be designated to serve five purposes: (a) satisfy the daily shopping needs of a localized (1- to 2-mile radius) trade area, (b) a major center to serve the needs of the entire Simi Valley market region, (c) set aside land for a broad range of commercial offices, (d) allow the location of new automobile dealer ship(s) in specified overlay areas, and (e) encourage spending by travelers passing through Simi Valley on SR -118. The types of stores suited for localized shopping needs include supermarkets, drug stores, quick-stop markets, small restaurants, personal services, and small specialty retail shops, the types of facilities which would serve travelers include coffee shops and restaurants, gas stations, specialty retail shops, and entertainment.
Very High Density Residential
To provide for a higher density residential environment. Very High Density areas are intended to result in garden apartments or similar structures, usually of three stories in height or more. It is intended that this designation be limited in its use to (a) the central portion of the valley floor, (b) on arterial streets, and (c) near shopping, transit, and other public facilities.
4 High Density Residential
To encourage a residential environment typified by higher density townhouses, two- to three- story apartments and other, multiple unit developments. The designation is intended for use in the more central areas near shopping, near transit, and on arterial or collector streets.
FINDINGS AND ALTERNATIVES
Land Use Changes
The proposed changes would result in the Mall District losing just over 35 percent of its acreage to residential zoning and use. This would include the 312,000 square feet of the current shopping center. The Applicant is proposing to add approximately 42,000 square feet of retail if they are allowed to proceed with entitlements. This would result in a final retail square footage of 323,000 square feet (Table 1).
Table 1 – Proposed retail square footage changes
Simi Valley Town Center Retail Square Footage
Existing square footage 593,000
Proposed demolition 312,000
Proposed retail addition 42,000
New total 323,000
Net Loss 270,000
As detailed in Table 2, the proposed changes result in the potential for 281 to 498 residential units to be developed prior to any application of State Density Bonus law. The Applicant is proposing 291 (18.5 units/acre) to 375 units (24 units/acre).
Table 2 – Potential residential units
Minimum Number Maximum Number
Maximum w/
State Density
Bonus Law
Parcel A/B/C – 12.25 acres
Proposed: Very High Density
Residential
Density: 20.1 – 35 units/acre
246 units 428 units 856 units
Parcel D – 3.5 acres
Proposed: High Density Residential
Density: 10.1 – 20 units/acre
35 units 70 units 140 units
Total number of units
(per General Plan changes)
281 units
(18 units/acre)
498 units
(32 units/acre)
996 units
(63 units/acre)
Applicant’s proposal 291 units
(18.5 units/acre)
375 units
(24 units/acre)
The application of State Density Bonus law could result in up to 100 percent increases in the allowable number of units as well as development waivers, concessions and limited local control due to the Housing Accountability Act.
5 Objectives and Purpose of the SVTC Specific Plan
The purpose of the SVTC Specific Plan is to ‘provide updated standards and guidelines for a coordinated development of a neighborhood containing a regional shopping center, a variety of retail development (including a big box site), commercial office and hotel uses, and a multi-family residential community.’
The relevant objectives of the SVTC Specific Plan are:
o Implement the goals and policies of the General Plan by fostering the development of a regional shopping center , which is the community’s top priority commercial goal and will enable local residents to work and shop in the community where they live.
o Provide additional local employment and sales tax revenue. o Create a desirable Town Center neighborhood where residents can work and play, and which will become a focal point within the community. o Establish unifying standards for architecture, signage, lighting, and landscaping within the project area.
The Mall District has seen significant challenges with retail vacancies and the loss of its two anchor tenants in 2017 and 2024. T he project may be consistent with the Specific Plan’s objectives if the proposed land use changes result in the revitalization of the Mall District. This would require that a true ‘mixed-use’ environment be created by the overall proposal. There would need to be sufficient residential units with varying price points, and in enough volume, to provide significant support to the retail uses . Sufficient retail must also be retained on the site. The revitalized retail may then provide more employment and sales tax revenue than is currently provided.
Economic Analysis
On September 28, 2015, the City Council established that a detailed economic and cost/benefit analysis should be provided when permanent changes are proposed to convert industrial properties to residential or commercial properties, to ensure a significant benefit to the community of Simi Valley. Similarly, it is recommended that if this application is allowed to move forward, the Council directs the Applicant to work with staff to prepare a detailed, independent, economic study that addresses the fiscal impacts of the proposed changes.
The City of Simi Valley’s Economic Development Strategic Plan adopted by the City Council on March 4, 2024, identifies high-density housing as an ‘overarching theme’ that may support revitalization for the Town Center as it adds flexibility to real estate development and helps attract a diverse workforce.
The study should address issues including the demand for housing at this site, present and future market trends, what the highest and best use for the site is, and how the changes meet the objectives of the strategic plan as described above.
Additional Considerations
The proposed land use designation changes may make the ‘Mall District’ subject to State Laws such as Housing Accountability Act and AB 2243. The latter State Law would allow 6 for streamlined, ministerial review of a project if it includes a mixed- income/affordable housing component. As the ‘Mall District’ is within a Specific Plan, and no housing is allowed in the District, the site currently may be excluded from this State Law. Note that this ‘exception’ sunsets for the Town Center in 2028, 25 years after adoption of the Specific Plan.
If the land use designation change goes forward, and the project is built out at market - rate, the total number of units would constitute 27% to 48% of the City’s 2021-2029 Regional Housing Needs Allocation (RHNA) for Above Moderate housing needs . Note that as detailed in Table 3 , the City already has sufficient approved and pending units , and units under construction to meet the requirement for Above Moderate housing for the current cycle (and currently exceeds this requirement by 92 units).
Table 3 – RHNA Progress for Simi Valley
SOURCE: General Plan Annual Progress Report for 2024 (3/10/2025)
Entitlements Required
If authorized to proceed with an application for a General Plan Land Use Amendment, the applicant would be required to submit applications, including detailed plans and studies required for analysis of the proposal under the California Environmental Quality Act (CEQA), for the following accompanying entitlements:
1. Specific Plan A mendment to reflect the proposed changes, objective design standards for the residential zones to ensure consistency with the Hillside Performance Standards (see below), connectivity, open space, etc.;
2. Planned Development Permit for the proposed units and Modification to the Planned Development Permit to the existing mall approval;
3. Tentative Maps for any proposed subdivisions;
4. Zone Text A mendment to the Hillside Performance Standards (HPS) , if the final project reduces the available retail space below “ 500,000 square feet of building area, a minimum of two major department stores of at least 100,000 square feet each” that forms the basis for exempting the SVTC from HPS (SVMC Section 9-
32.040.J). A change to the HPS requires a 4/5ths vote of the Council or a ballot measure. Note that the Specific Plan indicates that the existing exemption was not intended to be a precedent to allow further multi -family housing unless it is consistent with the HPS;
7 5. An amendment to the current Development Agreement that specifies a minimum 500,000-square-foot shopping center be provided and/or a new Development Agreement that protects the public’s interest.
City Council Resolution No. 94-10 establishes procedures for the processing of General Plan Amendment (GPA) requests, including a public hearing before the City Council to consider Pre-screening requests. The following criteria are included in Resolution No. 94- 10 regarding General Plan Pre- screening requests, with analysis for the City Council’s consideration:
1. The proposed amendment is of a configuration and land use that has a reasonable potential for being compatible with other existing and proposed land uses in the area.
The proposed changes to the Mall District may be compatible with other land uses in the area, if design considerations such as architectural consistency and connectivity between the residential and commercial portions are taken into account in the final design and revised Specific Plan objective design standards.
There are potential land use incompatibilities that may arise. These include potential conflicts with the Hillside Performance Standards (HPS), if the existing exemption is invalidated by site changes. N o changes are proposed in natural slope areas. However, there may be design issues that will need to be taken into account with regard to viewsheds, height restrictions and other requirements. The proposed amendments to the Specific Plan would need to be studied in detail , even with a proposed amendment to t he HPS text, to ensure compatibility with General Plan policies. It is important to note that while the applicant may be proposing townhome units, the land use designation changes could open up the sites to other building types such as apartments, etc. in the future.
State Density Bonus Law and the Housing Accountability Act would apply within the Mall District with the changes proposed by the developer . This may severely limit the ability of the City to impose local control in order to retain retail use and ensure development is compatible with the Town Center’s unique location in the City’s hillside areas. Protective measures such as a Development Agreement may be required to ensure the proposed project accompanying the General Plan Amendment request is compatible wit h other existing and proposed land uses in the area and aligns with the City’s objectives.
2. The proposed amendment has a reasonable potential for being compatible with the goals and policies of the General Plan, in that the following General Plan Policies are provided to demonstrate that the proposed land use designation changes may be appropriate for this location.
The proposed changes may be compatible with the following goals and policies:
o LU-1.3 Development Priorities. Prioritize future growth as infill and redevelopment of existing developed areas , re-using and, where appropriate intensifying development of vacant and underutilized properties within the City Urban Restriction Boundary (CURB). The proposed changes 8 would meet this policy and allow redevelopment of the mall area. However, there would need to be a clearly defined benefit of increased economic performance for the entirety of the SVTC for staff to recommend that the Council approve the proposed changes.
o U-19.1 Land Use Mix. Allow for mixed -use districts that integrate housing with retail, office, entertainment, and public uses where the housing may be developed on the upper floors of multi -use buildings or located in stand- alone buildings on a project site. The change of the Mall District to a mixed- use district may meet the objectives of the policy, if the housing provided is of sufficient numbers and of varied types to ensure the economic vitality of the commercial portions of the site.
The proposed changes may conflict with the following General Plan policy:
o LU-17.2 Economic Vitality. Promote the development of commercial centers that provide a strong fiscal basis for the city. As described above, there are significant risks that the proposed project may not align with the City’s goals of a vibrant Town Center due to the permanent loss of commercial square footage. The Town Center is an important property in the City as it’s one of the few remaining commercial properties of significant size that could accommodate large-scale retail, commercial, or community uses, otherwise not available in Simi Valley. The applicant would need to demonstrate how the proposed changes complement the overall Town Center and truly revitalize it. Conversely, if the reconfiguration of the retail on the site aligns with current and future market trends, the project may meet this policy goal, providing more employment and sales tax revenue.
3. The proposed amendment is unlike other amendment requests located in the same general area, which have been previously considered and denied by the City Council within the last 12 months.
There have been no other amendment requests located in the same general area that were considered and denied by the City Council in the last 12 months.
4. The proposed amendment is not located within an area where a newly adopted land use study or policy has been in effect for less than 12 months or within an area where the City Council has directed the preparation of a land use study.
The site is not located within an area where the City Council has directed the preparation of a land use study in the last 12 months
If allowed to proceed with a General Plan Amendment application (with a minimum of three (3) affirmative votes), the applicant would be authorized to file an application together with the related entitlements, within one-year of the City Council’s action.
It is important to note that the City Council’s authorization to process a request for a formal General Plan Amendment does not constitute approval of the General Plan Amendment. The City C ouncil will retain the discretion to ultimately approve or deny the General Plan Amendment request.
9 The following alternatives are available to the City Council:
1. Authorize GPPS -2025-0001 for further processing as a formal General Plan Amendment, a request to change the General Plan Designation for portions of the Mall District within the Simi Valley Town Center Specific Plan from General Commercial to High Density and Very High Density; direct the applicant to address specific City Council requests and comments raised by the City Council at the Public Hearing;
2. Authorize GPPS -2025-0001 for further processing as a formal General Plan Amendment, a request to change the General Plan Designation for portions of the Mall District within the Simi Valley Town Center Specific Plan from General Commercial to High Density and Very High Density, as presented;
3. Deny (do not authorize) GPPS-2025-0001 for further processing as a General Plan Amendment; or
4. Provide alternative direction to the Pre-screening review request.
Staff has no recommendation.
SUGGESTED CITY COUNCIL MOTION
There is no suggested motion.
SUMMARY
Gregory Hall, on behalf of Steel Wave, LLC, submitted a General Plan Amendment (GPA) Pre-screening application, GPPS-2024-0001, for the City Council’s conceptual review to change the General Plan land use designation for portions of the Mall District within the Simi Valley Town Center Specific Plan from General Commercial to High Density and Very High Density R esidential. Staff has made findings for the criteria required in Resolution No. 94-10, regarding the General Plan Pre-screening request. Therefore, staff recommends that the City Council review the request and, consider authorizing GPPS- 2025-0001 for further processing as a formal General Plan; and, if authorized, direct the applicant to address specific City Council requests and comments raised by the City Council at the Public Hearing.
____________________________________
Stratis Perros
Environmental Services Director
Prepared by: Naren Gunasekera, Principal Planner/Zoning Administrator
INDEX Page
Public Hearing Procedure ...........................................................................11 Exhibit 1 – Concept Diagram .......................................................................13 10 PUBLIC HEARING PROCEDURE
HEARING DATE: May 19, 2025
1. CITY CLERK: This is the time and place set for a public hearing to consider GPPS-2025-0001, a General Plan Amendment Pre-screening
request to change the General Plan l and use designation for portions of the Mall District within the Simi Valley Town Center Specific Plan from General Commercial to High Density and Very High Density residential.
2. MAYOR: Before we begin, are there any ex parte communications to report?
3. ANY COUNCIL
MEMBER: (Report)
4. MAYOR: Staff may begin with the oral report on this matter.
5. STAFF: (Report)
6. MAYOR: Any questions of staff from City Council Members? (Questions of staff and staff response)
7. MAYOR: At this time, I would like to open the hearing. Does the applicant wish to be heard on this matter?
8. APPLICANT: (Comments)
9. MAYOR: Any questions of the applicant from City Council Members? (Questions of applicant and applicant response)
10. MAYOR: Are there any members of the public wishing to be heard on this matter?
11. AUDIENCE: Public Testimony and Comments
12. MAYOR: Does Staff desire to respond to any comments or issues raised?
13. STAFF: (Response to comments and additional City Council questions)
14. MAYOR: Does the applicant desire any rebuttal?
15. APPLICANT: (Rebuttal)
16. MAYOR: The hearing is now closed.
11 17. MAYOR: Any further comments or questions from City Council Members? (Note: If the City Council has any further questions of staff or the applicant at this time, the Public Hearing may need to be re-opened.)
18. MAYOR: I will now entertain a motion.
19. ANY COUNCIL
MEMBER : NOTE: PICK THE APPLICABLE ACTION(S) & CHANGE ITEM NUMBER(S) OF ACTION(S) AS NEEDED:
City Council Actions (by motion of any Council Member):
1) I move to authorize GPPS -2025-0001 for further
processing as a formal General Plan Amendment (with any additional directives discussed in the report and public hearing).
2) I move to deny GPPS-2025-0001.
*Any action to refer the matter back to staff or to continue the matter requires a second and a vote.
20. ANY COUNCIL
MEMBER : Second
21. MAYOR: (Call for vote)
22. MAYOR: Proceed to the next item.
12 EXHIBIT 1
13