REPORT To the Honorable Mayor and City Council From the City Manager May 9, 2016 SUBJECT Study Session for Consideration of the Draft Inner Harbor Specific Plan, Draft Inner Harbor Specific Plan Environmental Impact Report, and Harbor View Place, a proposed project within the Inner Harbor Specific Plan Area RECOMMENDATION Hold a study session on the Draft Inner Harbor Specific Plan, Draft Inner Harbor Specific Plan Environmental Impact Report, and Harbor View and provide comment to staff and the Harbor View Place project applicant BACKGROUND The purpose of the meeting is to provide an opportunity for the City Council to provide comments regarding the Draft Inner Harbor Specific Plan (Draft IHSP) and the Draft Inner Harbor Specific Plan Environmental Impact Report (Draft EIR). The Council may also provide initial comments on the proposed Harbor View Place (HVP) project, located (substantially) within the Inner Harbor Plan area. This project is currently proposed by a private developer, and is analyzed as an alternative in the Draft IHSP EIR. The 2010 Redwood City General Plan identifies the need to study and plan for an Inner Harbor center. Redwood City s Inner Harbor area includes an eclectic mix of land uses including public facilities, a marina, open storage, and an aquatic center for rowing and paddling. The area contains and is adjacent to wetlands and abuts heavy industrial uses. A public boat launch is the primary means of waterfront access offered to the public. The Inner Harbor area does not currently provide internal connections for the Bay Trail. Due to the City s desire to improve the community s ability to access and enjoy the City s waterfront, to plan for a waterfront oriented neighborhood, and to improve and create circulation linkages north of US 101, the need for thorough planning of this area was identified as a distinct need in the General Plan. Subsequent to the adoption of the General Plan, an approximately 100-acre Plan Area was officially established for Inner Harbor area. It is on the north side of US 101 near Maple and Blomquist Streets and Redwood Creek as depicted on the following map:
Figure 1: Inner Harbor Specific Plan Area The policies and programs in the 2010 General Plan resulted in the City Council initiating the IHSP process in March 2013, including establishment of the Inner Harbor Task Force. The Task Force comprised 15 members representing property owners, government, environmental, business, recreation, residential tenants, and water-related users. From June 2013 through May 2014, staff and its consulting team of MIG (Specific Plan and meeting facilitation consultant) and ESA (environmental review and planning baseline studies consultant), held eleven task force meetings and one community-wide meeting to develop a vision for the IHSP. Baseline studies regarding a wide range of topics land use, sea level rise, circulation, biological habitat, etc. - were prepared for Task Force and public input during these sessions. In May 2014, the City Council and Planning Commission held a joint study session to consider the Task Force s recommendations. Staff presented the Task Force s 17 Guiding Principles and basic land use map for the Plan Area. Additional information about the Task Force s findings of consensus are described in the May 12, 2014 report (meeting minutes) to a joint meeting of the Planning Commission and the City Council. That session concluded the Task Force phase of the process and Council directed staff to proceed with development of the Draft IHSP and its associated Draft EIR.
On October 26, 2015, the City released the Draft IHSP and Draft EIR for a 90-day public review period concluding on January 25, 2016. The documents are available on the City s website (www.redwoodcity.org/innerharbor). On December 1, 2015, the Planning Commission held a hearing to accept testimony and comment on the Draft IHSP and Draft EIR. The hearing included an overview and summary of the Draft IHSP presented by City staff and a summary of the Draft EIR presented by Environmental Science Associates (ESA), the City s consultant for the Draft EIR. Members of the Planning Commission asked questions of staff and the consultant. Chair Bondonno then opened the public hearing for comment. Approximately 27 speakers provided testimony on a variety of issues related to the Draft IHSP and Draft EIR. At the conclusion of the public testimony, Chair Bondonno closed the public hearing. Following additional questions from the Planning Commission to staff, Chair Bondonno requested that staff schedule an additional Planning Commission meeting before the close of the public comment period. The December 1, 2015 staff report is available at the City s Inner Harbor website. The Historic Resources Advisory Committee (HRAC) conducted a Draft EIR study session at their regular meeting of December 10, 2015, focusing on the Cultural Resources chapter (Draft EIR, Chapter 4.4) and, in particular, the former water tank adjacent to Redwood Creek. During the study session, several HRAC members initially disagreed with the finding in the Draft EIR that the former water tank does not meet any of the federal, state, or local register criteria for listing as a historic resource. The HRAC requested additional research or a more thorough discussion in the EIR. The December 10, 2015 staff report is available at the City s Inner Harbor website. In late January 2016, the public review period for the Draft IHSP and Draft EIR was extended from January 25, 2016 to March 4, 2016. This extension provided additional time for the public to review the documents and prepare responses. On March 1, 2016, the Planning Commission held a meeting to provide an additional public review session with the Planning Commission. Commissioners and members of the public provided oral comments to City staff and consultants regarding the Draft IHSP and Draft EIR. Preceding the March 1, 2016 Planning Commission meeting, City staff held an open house as an opportunity for interested parties to learn about environmental issues and specific plan components related to the Inner Harbor. Information stations were set up in the Council Chambers lobby. Attendees were able to visit each station, talk with City staff and consultants, and leave official comments to be considered during the preparation of the final documents.
The 130-day public comment period closed on March 4, 2016. Comments were received from over 35 individuals and organizations. ANALYSIS Existing General Plan and Zoning Designations The Redwood City 2010 General Plan identifies the following existing land use designations in the Plan Area: Mixed-use Waterfront Neighborhood Industrial Light Open Space San Francisco Bay Public Facility Industrial Port Related Open Space Preservation The Redwood City Zoning Map identifies the following existing zoning designations in the Plan Area: Tidal Plain (TP) General Industrial (GI)
Industrial Restricted (IR) These zoning designations vary in their consistency with the 2010 General Plan within the Plan Area. In some cases, the zoning and General Plan designations are not fully consistent. It is the intent that the proposed Specific Plan will reconcile inconsistencies. The General Plan and Zoning Maps are provided in Attachment 1. The Draft Inner Harbor Specific Plan (IHSP) If adopted, the IHSP would regulate development-related decisions through its planning framework and objectives to the planning horizon year of 2040. The Draft IHSP comprises the following eight (8) chapters: 1. Introduction 2. Baseline Conditions 3. Vision Framework 4. Land Use and Zoning 5. Design Guidelines and Standards
6. Circulation and Parking 7. Utilities 8. Administration and Implementation A complete discussion of each chapter within the Draft IHSP is provided in the December 1, 2015 Planning Commission staff report (attached). Inner Harbor Development Sites Within the Inner Harbor Specific Plan area, there are three private property areas where new construction could take place: 1. Inner Harbor-1 (IH-1): This area is between Redwood Creek and the Maple Street shelter. The parking lot and facilities for Docktown Marina currently exist in this location (on privately owned parcels). The Draft IHSP would allow: a. Residential uses: 20 units/acre + an additional 20 units/acre with an approved community benefits plan b. Commercial uses: floor area of 60% of site area + an additional 20% with an approved community benefits plan c. Maximum height of 30-feet + an additional 20-feet with an approved community benefits plan The City has received a development proposal from Watt Communities that includes a 100% residential project at the IH-1 site. Currently the developer is proposing 130-170 units within this area. 2. Inner Harbor-2 (IH-2): This site is located in the area between Blomquist Street and Highway 101, east of the new jail. Malibu Grand Prix previously existed within this area. The Draft IHSP would allow: a. Residential uses: 20 units/acre + an additional 20 units/acre with an approved community benefits plan b. Commercial uses: floor area of 70% of site area + an additional 30% with an approved community benefits plan c. Maximum height of 75-feet + an additional 43-feet with an approved community benefits plan The City has received a development proposal from Jay Paul Company for a 100% commercial office project at the IH-1 site. This project is known as Harbor View Place and extends beyond the proposed Inner Harbor Plan boundaries, and exceeds the development standards noted above. The project is described within this staff report.
3. Ferrari Property, Water Dependent Development-2 (WD-2) & Open Space Wetland (OS-W) The Ferrari Property is located north of the Inner Harbor landside area, adjacent to the Graniterock facility and Seaport Centre. The Draft IHSP would allow: a. Residential uses: 8 units/acre + an additional 2 units/acre with an approved community benefits plan b. Maximum height of 30 feet c. On the OS-W portion of the site, only low scale buildings compatible with the open space nature of the site would be allowed; floor area of 25% maximum. The City has not received a formal development application for this site. However, this site is generally considered to be the best site for a floating home community. Residential density of approximately 100 units may be possible, with additional units possible under an alternative scenario studied in the Draft EIR. Draft Environmental Impact Report The City has prepared a Draft EIR for Draft IHSP and HVP project under all relevant sections of the California Environmental Quality Act (CEQA). The Draft EIR informs Redwood City decision makers, responsible agencies, and the public of the potential environmental effects associated with the IHSP and HVP project. The Draft EIR identified potential significant impacts for the Specific Plan in the areas of Aesthetics, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Greenhouse Gas Emissions and Energy, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Noise, Population, Housing and Employment, Public Services and Recreation, Utilities and Service Systems, and Transportation and Traffic. A summary of the environmental impacts associated with the Draft OHSP is provided in the December 1, 2015 Planning Commission staff report. Harbor View Place The Jay Paul Company submitted a proposal to development a commercial office project within the Inner Harbor area. This project is known as Harbor View Place (HVP). The HVP project encompasses the easternmost portion of the proposed IHSP area specifically the IH-2 district (the former Malibu Grand Prix site) and an additional parcel (Lyngso) located outside of the IHSP area, at the southwest corner of the intersection of Seaport Boulevard and Blomquist Street. Given the proposed development extends beyond the boundaries of the IHSP, and exceeds the development standards, the
proposed development is analyzed (at a project level) as an alternative to the preferred plan scenario. The HVP project itself also contains alternatives within the Draft EIR. The proposed project is an office campus with four 9-story buildings and three parking structures. The overall project concept is office buildings surrounding an approximately 4-acre green space with landscaped spaces of varying scale and programmed uses. The central green space connects all four office buildings and three parking structures with a landscaped promenade. The project sponsor s application for the project proposes a development that includes 1,250,468 square feet (sq.ft.) of commercial office use. The project has a 1.15 FAR. The proposed office buildings are each approximately 302,617 sq.ft. in floor area. Building footprints are approximately 34,647 sq.ft. Approximately 25 percent of the total 4,036 parking spaces proposed are in surface parking lots with the balance split between the three parking structures. A full description of the Harbor View project, including access and circulation, building design, landscaping and amenities, Transportation Demand Management program, and utilities is provided in the Draft EIR, Chapter 3, Section 3.6 (page 3-45). Issues Since October 2015 Release of the Draft IHSP and Draft EIR Docktown Marina On January 25, 2016, the City Council approved a settlement agreement between the City of Redwood City and the Citizens for the Public Trust and Ted J. Hannig, relating to claims of violations of environmental law and the common law Public Trust Doctrine in connection with Docktown Marina. The terms of the settlement include, among other items, the creation of a fund to address environmental issues and public trust issues associated with the public trust portion of Docktown. The City has agreed to adopt a Docktown Plan by December 31, 2016 in conformance with the State Lands Commission s policies concerning the residential uses. The City has recently requested that legislation be passed that allows Docktown Marina to remain for a period of 15 years under certain conditions. The City s request was supported by the State Lands Commission at their April 5, 2016 meeting. While there is preliminary support for this legislation, it is not certain whether it will ultimately pass and be signed by the Governor.
The preferred project within the Draft EIR would not include residential uses in the land use area proposed as Water Dependent-1 (WD-1). This area currently contains the Docktown Marina. Restricting residential uses within WD-1 is consistent with State Lands Commission policies that residential uses are in conflict with State law and the City s granting statute. This position was confirmed in a letter the City received from the Attorney s General s Office in response to the release of the Draft Inner Harbor Plan. The Draft EIR does, however, include the Maximum Floating Community Alternative (Draft EIR, Section 5.5.4 Alternative SP-3). This alternative includes expanded areas for Floating Community uses. The Floating Community use would be a conditional use within Redwood Creek, where Docktown Marina currently exists. Staff believes that neither the recent settlement agreement, nor any change in state law, or State Lands Commission policies, would affect the Draft IHSP or Draft EIR in a way that would require significant revisions or recirculation. Because residential uses were analyzed in the Maximum Floating Community Alternative, the City can rely upon the proposed land use policies and environmental analysis in the Draft IHSP and Draft EIR in a manner that could accommodate a variety of uses along Redwood Creek, should any of those uses be formally adopted by the City Council. As such, the Draft IHSP could be revised (prior or subsequent to adoption) to recognize future changes to State law. San Mateo County Women s Shelter San Mateo County has notified the City that it intends to retain the existing LifeMoves (formally InnVision Shelter Network) Maple Street Shelter, including the facilities of the former women s jail, and make capital investments to improve the facilities and extend its useful life. As a result, this area, owned by San Mateo County, would be designated as a Public Facility land use within the Inner Harbor Specific Plan. The Redwood City Police Station and newly constructed San Mateo County Women s Jail would also have the Public Facilities land use designation. Additional Issues for Council Consideration Harbor View Place The HVP project as proposed does not conform to the Draft IHSP, Inner Harbor-2 standards. As described in Table 1 below, the HVP project exceeds proposed standards for maximum floor area and height. In addition, the Harbor View site area extends beyond the proposed IHSP area. Table 1: Inner Harbor - 2 Land Use Area Comparison with Harbor View Place Project
IHSP Inner Harbor 2 HVP Proposed Site HVP Project Land Area* 21.53 acres 27.06 acres 27.06 acres 937,847 square feet 1,178,837 square feet 1,178,837 square feet Floor Area 0.7 656,492 square feet 0.7 825,186 square feet Floor area w/ bonus 1.0 937,847 square feet 1.0 1,178,837 square feet 1.15 ratio 1,355,663 square feet Height 75 Height w/ bonus 118 131-6 to top of parapet 155-6 to top of tower Parking 1 space per 300 square feet 1 space per 300 square feet 4,369 parking spaces Council will have options for considering the Harbor View Place project in relation to the Inner Harbor Specific Plan: 1. Council could adopt the standards in the IHSP, or a reduced floor area limitation. A future project would have to conform with these standards or it could not be approved. 2. Council could first certify the Inner Harbor Specific Plan EIR and adopt the Inner Harbor Specific Plan, then at a later date, consider amendments to the IHSP to accommodate the HVP project. 3. Council can direct staff to modify the Draft IHSP to accommodate the HVP Project (or, some alternative version; either larger or smaller than proposed). The Harbor View Place project applicants will provide an overview of their project at the Study Session. Proposed Site Development Regulations as compared to other Zone Districts
Table 2, provided in Attachment 2 of this staff report, summarizes the site proposed site development regulations for commercial floor area and residential density. A complete site development regulation table, including height, setbacks, and other standards is provided in Attachment 3. Table 2 also includes a comparison of the IHSP regulations in the IH-1 and IH-2 land use areas, which would allow the highest development intensities, with similar existing zone districts located throughout the City. The table illustrates that the proposed IHSP floor areas and densities are generally in-line with similar existing districts. For example, the IH-2 floor area standard, a maximum FAR of 1.0 with bonus, is consistent with the Commercial Park (CP) zone district. CP zoned areas include the Pacific Shores Center at the end of Seaport Road and Seaport Center at Chesapeake Drive and Seaport Road. Traffic Impacts As described above, the Draft EIR identifies potential significant impacts. All can be mitigated to Less Than Significant levels in conformance with applicable standard measures and project-level mitigation measures except for the significant unavoidable Transportation and Traffic impacts. The same is true for impacts related to the Harbor View Place Project. However, a greater number intersections would be considered have significant and unavoidable impacts. Council should be aware that even the No Project alternative, which allows growth through the existing General Plan, would still generate significant and avoidable impacts at studied intersections. The charts in Attachment 4 illustrate the intersection impacts surrounding the Inner Harbor area: Figure 1: Existing Conditions Figure 2: Conditions in 2040, without the IHSP Figure 3: Conditions in 2040, with the IHSP Figure 4: Conditions in 2040, with the IHSP and with mitigations including the construction of the 101/84 interchange project Figure 4 illustrates intersection improvements with the construction of the 101/84 interchange improvement project. In 2040 some intersections would operate an acceptable levels, while others would operate at unacceptable levels. This is generally consistent with the findings from the recently released US Highway 101/SR 84 Interchange Improvement Project Initial Study with Proposed Negative Declaration/Environmental Assessment document.
ALTERNATIVES As this is a study session item, there are no alternatives to consider. FISCAL IMPACT Costs associated with the preparation of the Draft IHSP and Draft EIR, have been previously allocated by the City Council. Staff and consultant costs associated with the review of the HVP project are reimbursed by the HVP project applicant through the City s cost recovery program. ENVIRONMENTAL REVIEW As described above, the City has prepared a Draft EIR for Draft IHSP and HVP project under all relevant sections of the California Environmental Quality Act (CEQA). The Draft EIR informs Redwood City decision makers, responsible agencies, and the public of the potential environmental effects associated with the Specific Plan and HVP project. The Draft EIR was released for public review on October 26, 2015 for a 130-day comment period. The City will prepare a Final EIR, which will include responses to comments received and recommended edits to the Draft EIR document. STEVEN TURNER PLANNING MANAGER AARON AKNIN ASSISTANT CITY MANAGER/COMMUNITY DEVELOPMENT DIRECTOR MELISSA STEVENSON DIAZ CITY MANAGER ATTACHMENTS -General Plan -Zoning Comparison -Proposed site development -Traffic exhibits