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PC Resolution 2023-019 LQ Village Apts GPA 2022-0002; SP 2022-0001; SDP 2022-0001; EA 2022-0001- Alt Housing SitesPLANNING COMMISSION RESOLUTION 2023 - 019 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, RECOMMENDING TO THE CITY COUNCIL TO APPROVE ADDITIONS TO THE CITY'S INVENTORY OF SITES IN THE CITY'S CERTIFIED HOUSING ELEMENT TO MEET THE STATE -MANDATED "NO NET LOSS" REQUIREMENTS IN CONNECTION WITH THE LA QUINTA VILLAGE APARTMENTS PROJECT, LOCATED ON THE NORTHEAST CORNER OF WASHINGTON STREET AND AVENUE 50 CASE NUMBERS: GENERAL PLAN AMENDMENT 2022-0002 SPECIFIC PLAN 2022-0001 (SP2004-071, AMEND 2) SITE DEVELOPMENT PERMIT 2022-0001 ENVIRONMENTAL ASSESSMENT 2022-0001 APPLICANT: IRWIN PARTNERS ARCHITECTS WHEREAS, the Planning Commission of the City of La Quinta, California, did, on November 14, 2023, hold a duly noticed Public Hearing to consider additions to the City of La Quinta's Inventory of Sites in the City's Certified Housing Element to meet the State - mandated "No Net Loss" Requirements pursuant to California Government Code section 65863(e) in connection with the La Quinta Village Apartments project, consisting of 252 units (178 market -rate units and 74 moderate -income units) located on the northeast corner of Washington Street and Avenue 50, more particularly described as: Assessor Parcel Number: 646-070-016 WHEREAS, the project site, Assessor Parcel Number: 646-070-016 ("Project Site") is identified on the City's inventory of sites in its Housing Element, which is part of the City's General Plan, to accommodate 280 residential units in the very low- and low- income categories in accordance with State Planning and Zoning Law (Gov. Code, Section 65000 et seq.) and, specifically, the State -mandated Regional Housing Needs Assessment (RHNA) that is part of the Housing Element Law (Gov. Code, Section 65580 et seq.); and WHEREAS, pursuant to the Housing Element Law, the City must update its Housing Element every eight (8) years to address and incorporate a multitude of State - mandated requirements, which are reviewed and subject to certification by the California Department of Housing and Community Development (HCD) (Gov. Code, Section 65585); and PLANNING COMMISSION RESOLUTION 2023-019 GENERAL PLAN AMENDMENT 2022-0002; SPECIFIC PLAN 2022-0001 (SP 2004-071, AMENDMENT 2); SITE DEVELOPMENT PERMIT 2022-0001 PROJECT: LA QUINTA VILLAGE APARTMENTS ADOPTED: NOVEMBER 14, 2023 PAGE 2OF5 WHEREAS, if HCD certifies a Housing Element, it establishes a rebuttable presumption in law that the Housing Element is in compliance with State law in any action filed to challenge the validity of a Housing Element (Gov. Code, Section 65589.3); and WHEREAS, on October 7, 2022, HCD certified the City's Housing Element for the current planning cycle (2022-2029) as being in compliance with the Housing Element Law; and WHEREAS, pursuant to Government Code Section 65863 (commonly referred to as the State "No Net Loss Law"), the City must maintain adequate sites to accommodate its remaining unmet RHNA allocation by each income category (i.e., very low-, low-, moderate-, and above moderate -income categories); and WHEREAS, pursuant to the No Net Loss Law, if the City were to approve development of a parcel identified in its Housing Element's inventory of sites with fewer units, per income category, than shown in the Housing Element, the City must either make findings that the Housing Element's remaining sites have sufficient capacity to accommodate the remaining unmet RHNA allocation by income level or identify and make available sufficient sites to accommodate the remaining unmet RHNA allocation for each income category; and WHEREAS, the City is responsible for compliance with the No Net Loss Law, unless a project applicant requests in his or her initial application, as submitted, a density that would result in the remaining sites in the Housing Element not being adequate to accommodate the jurisdiction's share of the regional housing requirements. In that case, the City may require the project applicant to comply with the No Net Loss Law pursuant to Government Code Section 65863(e); and WHEREAS, the project includes 74 moderate -income units and 178 market -rate units but does not include units in the very low- and low-income categories. Therefore, pursuant to the No Net Loss Law, the City has required the applicant to identify additional site(s) that could accommodate 280 very low- and low-income units, whereby adding additional sites requires a General Plan Amendment (GPA) to add additional site(s) to the inventory of sites in the City's Housing Element; and WHEREAS, the applicant identified one potential site to add to the Housing Element's inventory of sites, a 12.74 -acre property located at the northeast corner of Washington Street and Fred Waring Drive and in a Community Commercial zone that also has the Affordable Housing Overlay and Mixed Use Overlay, which allows for mixed use development - both multifamily residential and commercial development (this potential additional site is referred to as "Site 6" under the proposed Housing Element Amendment); and PLANNING COMMISSION RESOLUTION 2023-019 GENERAL PLAN AMENDMENT 2022-0002; SPECIFIC PLAN 2022-0001 (SP 2004-071, AMENDMENT 2); SITE DEVELOPMENT PERMIT 2022-0001 PROJECT: LA QUINTA VILLAGE APARTMENTS ADOPTED: NOVEMBER 14, 2023 PAGE 3 OF 5 WHEREAS, other potential sites for the development of very low- and low-income units have been brought to the attention of the City and the applicant, which, like Site 6, are currently not in the Housing Element's inventory of sites and may provide additional alternate sites for HCD to consider for purposes of the applicant's requirement to comply with the No Net Loss Law; and WHEREAS, since the application for the Project Site had been submitted and complete, the applicant has modified the design of the project and other development components in response to comments from the public, Planning Commission, and City Council, but the applicant has not modified the project to include very low- or low-income units; and WHEREAS, because the addition of any alternate sites currently not on the inventory of sites is an amendment to the City's Housing Element, and HCD must review and approve any amendment the City's Housing Element (Gov. Code, Section 65585(a)), General Plan Amendment 2022-0002 will be subject to HCD review and approval, and Specific Plan 2022-0001 (SP 2004-071, Amendment 2) and Site Development Permit 2022-0001 may only be conditionally approved and will be effective only if HCD approves General Plan Amendment 2022-0002 and the City retains a certified Housing Element; and WHEREAS, the Planning Commission of the City of La Quinta, California, did, on November 14, 2023, consider the adding of alternate sites to the Housing Element's inventory of sites on remand from the City Council at a duly noticed public meeting and in accordance with Government Code section 65356, and upon hearing and considering all testimony and arguments, the Planning Commission did recommend approval of adding alternate sites (in addition to Site 6) to the Housing Element's inventory of sites, to be reviewed and approved by HCD, in order for the applicant to comply with the No Net Loss Law; and WHEREAS, the City Council of the City of La Quinta, California, did, on November 7, 2023, previously hold a duly noticed Public Hearing to consider adoption of a Mitigated Negative Declaration and approval of a General Plan Amendment, Specific Plan Amendment, and Site Development Permit, including the applicant's proposed modifications considered on prior remand to the Planning Commission, and the City Council did, upon hearing and considering all testimony and arguments, again continue its public hearing until a date certain and remanded the applications to the Planning Commission, pursuant to Government Code Section 65356, so that the Planning Commission could report and make a recommendation on adding alternate sites (in addition to Site 6) to the Housing Element's inventory of sites, to be reviewed and approved by HCD, in order for the applicant to comply with the No Net Loss Law; and PLANNING COMMISSION RESOLUTION 2023-019 GENERAL PLAN AMENDMENT 2022-0002; SPECIFIC PLAN 2022-0001 (SP 2004-071, AMENDMENT 2); SITE DEVELOPMENT PERMIT 2022-0001 PROJECT: LA QUINTA VILLAGE APARTMENTS ADOPTED: NOVEMBER 14, 2023 PAGE 4OF5 WHEREAS, the Planning Commission of the City of La Quinta, California, did, on October 10, 2023, consider the items on remand from the City Council at a duly noticed public meeting and in accordance with Government Code section 65356, and upon hearing and considering all testimony and arguments, the Planning Commission did recommend approval of the applicant's proposed modifications to the project; and WHEREAS, the City Council of the City of La Quinta, California, did, on August 1, 2023, previously hold a duly noticed Public Hearing to consider adoption of a Mitigated Negative Declaration and approval of a General Plan Amendment, Specific Plan Amendment, and Site Development Permit, and upon hearing and considering all testimony and arguments, the City Council did continue its public hearing until a date uncertain and remanded the applications to the Planning Commission, pursuant to Government Code Section 65356, so that the Planning Commission could report and make a recommendation on the applicant's proposed modifications to the project, which included reducing the number of stories of the units from three to two stories, changing the architectural style of the buildings from Contemporary Modern to Spanish Hacienda style, and removing garages on the north side of the site plan; and WHEREAS, the Planning Commission of the City of La Quinta, California, did, on June 27, 2023, hold a continued Public Hearing considering changes to the project as requested and did recommend adoption of the Mitigated Negative Declaration; and did not provide a recommendation for approval of the General Plan Amendment, Specific Plan Amendment, and Site Development Permit due to less than majority vote approval; and WHEREAS, the Planning Commission of the City of La Quinta, California, did, on March 28, 2023, previously hold a duly noticed Public Hearing to consider said request and continued said Public Hearing to a date certain of June 27, 2023, to give the applicant time to address the Planning Commission's concerns regarding architectural design, density and height of buildings, parking, and traffic; and NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinta, California, as follows: SECTION 1. That the above recitations are true and constitute the Findings of the Planning Commission in this case. SECTION 2. That, pursuant to Government Code Section 65863(h), the identification of alternate sites to comply with the No Net Loss Law is statutorily exempt from the California Environmental Quality Act (Pub. Res. Code, Section 21000 et seq.). SECTION 3. That the Planning Commission does hereby recommend to the Council the approval of adding alternate sites (in addition to Site 6) to the Housing Element's inventory PLANNING COMMISSION RESOLUTION 2023-019 GENERAL PLAN AMENDMENT 2022-0002; SPECIFIC PLAN 2022-0001 (SP 2004-071, AMENDMENT 2); SITE DEVELOPMENT PERMIT 2022-0001 PROJECT: LA QUINTA VILLAGE APARTMENTS ADOPTED: NOVEMBER 14, 2023 PAGE 5 OF 5 of sites, to be reviewed and approved by HCD, in order for the applicant to comply with the No Net Loss Law, as outlined in the staff report and attachments (incorporated by reference herein) identifying and describing said alternate sites: (1) APN 770-040-012; (2) APN 600-030-018. PASSED, APPROVED, and ADOPTED at a regular meeting of the City of La Quinta Planning Commission, held on November 14, 2023, by the following vote: AYES: Commissioners Caldwell, Guerrero, Hernandez, McCune, Tyerman, and Vice Chairperson Hassett NOES: None ABSENT: Chairperson Nieto ABSTAIN: None DOU ASSETT, Vice Chairperson City of La Quinta, California ATTEST: DANNY CASTRO,' Design and Development Director City of La Quinta, California PLANNING COMMISSION RESOLUTION 2023-019 ADOPTED: NOVEMBER 14, 2023 EXHIBIT A Table II -50 Vacant Land Inventory Map Key APN Acres Existing GP Existing Zoning Projected Density Projected Yield Very Low, Low and Moderate Income Sites 1 646 -07o -o16 13.84 MHDR RMH (AHO) 20 28o 770156007 0.23 VC VC 14 4 2 770156010 0.39 VC VC 14 5 77o181oog 0.36 I VC I VC 14 5 773078005 0.11 MC/VC MC/VC 14 1 773078006 0.11 MC/VC MC/VC 14 1 3 (City Owned) 773078007 0.11 MC/VC MC/VC 14 1 773078o16 0.12 MC/VC MC/VC 14 2 773078017 0.12 MC/VC MC/VC 14 2 773078034 1.11 MC/VC MC/VC 14 15 4 770040012 .6 MHDR RMH 64 5 (City Owned) 600030018 5.1 CG CR(AHO) 36 18o 6 609070053 6 of 12.7 CG CC(AHO) 20 120 7 604-032-042 1.88 MHDR RMH 12 22 O(ned) 600-030-010 2112gf MHDR RMH 19 52 g 600-390-024 15.14 CG CP/CR 18 273 60008000l I 0.19 I MHDR I RM I 10 I 2 600080002 0.19 MHDR RM 10 2 600080003 0.19 MHDR RM 10 2 10* 600080004 0.19 MHDR RM 10 2 600080005 0.19 MHDR RM 10 2 600080006 0.19 MHDR RM 10 2 600080007 0.19 MHDR RM 10 2 600080008 0.19 MHDR RM 10 2 60008000g 0.21 MHDR RM 10 2 600080041 2.4 MHDR RM 10 24 11 643-020-025 4.81 CG CR 26 126 12* 600340050 4.46 MHDR RM 8 36 600340051 13.01 MHDR RM 8 104 13 (City Owned) 600-020-057 6.42 CG CR 18 116 Total Very Low, Low and Moderate Income Sites 1,436 *Moderate income site Table II -50 Vacant Land Inventory Map Key APN Acres Existing GP Existing Zoning Projected Density Projected Yield Above Moderate Income Sites Acres Existing GP Existing Zoning Projected Density Projected Yield 15 Various 40.76 LDR/OS-R RVL/PR 3 go 16 Various 37.43 LDR RL/PR 3 60 17 Various 29.56 LDR RL 3 94 18 Various 20.72 LDR RL 3 57 19 Various 33.07 LDR RL 3 85 20 Various 28.76 LDR RL 3 70 Total Above Moderate Sites 456 Total All Sites .................... FRED MiLft,AVE. 70 . ........... Lr logIyf 96 W. 13L 12VF 4-- % Zoning W1 OS O 52ndAVE. cc CN M Co ix O CP 3 54M AVE. C 15 R CT FP M GC 2 MC OS PR 20% P'c 19 Ell M RH RL R M ............... MhAVE. RMH POw RVL VC 62ndAVE. ------------ N 64th AVE. UpdaEed 11.09.2023 0 0.5 1 2 City of La Quinta General Plan Ed" L jTERRA NOVA: Inventory Map 11-25 1L. -GA WSFMCI WC La Quinta, California 152 • Millennium SARDA site, 240 units affordable to very low and low income households on to acres, under contract in 2021, at a density of 24 units per acre. Indio: • Arroyo Crossing 1 is currently under construction, and provides 184 units on 6.4 acres affordable to very low and low income households, at a density of 29 units per acre. • Arroyo Crossing 2, will provide 216 units affordable to very low and low income households on 7.3 acres, at a density of 30 units per acre. The project was approved in 2021. In the region, projects ranging in density from 17 to 29 units per acre are being funded and can be built to accommodate lower income households. Therefore, the densities for larger projects, ranging from 18 to 26 units per acre, can be achieved in La Quinta. In the past, the City has applied the Affordable Housing Overlay to specific inventory sites which were zoned for non-residential uses. This strategy is being modified (see Program 3.1.a) to apply to all inventory sites, and to increase the AHO density to 30 units per acre, even though, as demonstrates above, affordable housing projects in the region are being built at lower densities. The 30 unit per acre density will be the base on which density bonus provisions will be applied, as described in Program 3.1.a. Units built using the AHO must be affordable to lower income households, unless they are identified as moderate income sites in Table II -5o. As provided in Program 3.1.a, the AHO will allow three story construction (consistent with the existing High Density Residential Zone), and shall be analyzed to assure that development standards are sufficient to allow the 30 unit per acre density. Site z consists of three small lots in the Village, on Desert Club Drive. The three lots have been approved for 14 apartments which are to be affordable to moderate income households. The three lots may be merged by the owner, but can proceed as three lots without further City processes. The owner has been finalizing building plans and construction is expected in 2022. As shown in Table III -49, market rental rates in the City are affordable to moderate income households. Therefore, these units have been included for moderate income households. Site 4 is approximately 7.5 acres and is within the Medium Density Residential (RM) zone which allows 4-8 units per acre. The city currently has a pending application for a l00% Very Low and Low Income 153 development made up of 64 units. Site 4 is located near transit, schools and commercial areas. Site 5 is approximately 5.1 acres and is located along the Highway 111 commercial corridor in the Regional Commercial (CR) zone. This zone allows for multifamily residential development and mixed use development. The Affordable Housing Overlay is on this site as well and allows a higher density for affordable projects. This is a City owned site and has been analyzed in a recently adopted Mitigated Negative Declaration for up to 18o units, resulting in 36 units per acre. Site 6 is approximately 6 acres and would provide approximately 120 units. It is commercially designated and benefits from the Affordable Housing Overlay. The site is within the City's Community Commercial zoning designation, which allows for multifamily and mixed use development. The Affordable Housing Overlay is on this site as well and allows for higher densities for affordable projects. Site 6 is proposed at 20 units per acre, consistent with development in the region, and would result in 120 units. The site is within a "High Resource" area, per Exhibit II -14, and its proximity to Highway 111 and nearby schools makes it an ideal site. Three sites in Table II -5o are over io acres in size. Although the State does not believe that these sites can be developed for affordable housing, the Coachella Valley is experiencing development of lower income projects on larger sites, including two projects in Palm Desert described above. Nevertheless, in order to encourage the development of affordable projects on these sites, Program 3.l.a has been added, which provides incentives for subdivision of larger sites. It should also be noted that Site lo, which includes multiple small lots for 42 moderate income units, is an approved apartment project which is being constructed on land previously owned by the City, which was successfully sold to a private developer. The project is expected to be constructed in the next two years. The parcels previously were developed as single family homes, which the City bought to widen Jefferson Street. Upon completion of the widening, the lots were marketed to the private development community, and an apartment project was proposed in 2019, and approved in 2020 for the site. The City therefore has experience in the assembly of smaller lots for the successful development of housing. Finally, Sites 15 through 20 are provided to accommodate above moderate income households. These sites are all located in existing 154