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REQUEST FOR CITY COUNCIL ACTION MEETING DATE: MARCH 14, 2017 TITLE: SCOPING SESSION FOR A GENERAL PLAN AMENDMENT REQUEST REPRESENTING AN EXCHANGE OF NON RESIDENTIAL BUILDING SQUARE FOOTAGE FOR NEW RESIDENTIAL UNITS WITHIN PLANNING AREA 12 (OAK CREEK) AND PLANNING AREA 40 (CYPRESS VILLAGE) ~j v-- Director of Commumty Dev pment City Manager RECOMMENDED ACTION 1. Reopen the discussion and receive public input. 2. Provide direction to staff to: process the subject application, delay processing the application, or discontinue processing the application. EXECUTIVE SUMMARY Irvine Company Office Properties filed a request for a General Plan Amendment (GPA) and Zone Change to exchange non-residential square footage for new residential units within Planning Area (PA) 12 (Oak Creek) and PA 40 (Cypress Village). The proposal does not add overall building intensity to the General Plan, but rather shifts intensity between various categories of development within the two planning areas. The intent of a General Plan seeping session is as follows: 1) to make the City Council aware of a submitted General Plan Amendment request; 2) to give the City Council an opportunity to ask clarifying questions regarding the request; and, 3) to allow the City Council an opportunity to provide staff with specific direction on whether to proceed or to not proceed with staff's analysis of the General Plan Amendment request. Overall, the requested GPA would increase the total maximum number of residential dwelling units in the General Plan by 1,343 in exchange for a decrease of 1,520,468 square feet of non-residential (e.g., commercial, industrial, institutional, etc.) square footage. Collectively, if the requested GPA is approved, future development within PAs 12 and 40 could include up to 1,960 new Medium-High Density residential units (apartments), a 25,000 square foot neighborhood commercial center, 530,000 square feet of nonresidential uses (potentially mini-warehouse), and 6.7 acres of parkland. Please reference the City Council report dated February 28, 2017 (attached), for a detailed description of the proposed amendments to PAs 12 and 40.

City Council March 14, 2017 Page 2 of 3 At the City Council meeting of February 28, 2017, a seeping session for the proposed GPA occurred. A discussion by the City Council followed a presentation by staff and included the following areas of concern: 1. Potential added traffic resulting from the project; 2. Existing and future circulation near the Interstate (I) 5 Freeway off-ramps at Sand Canyon and Jeffrey Road; 3. Vehicular access provided at only two points to the PA 12 Site; and 4. Compatibility of residential development on the PA 12 Site with the adjacent 1-5 Freeway. As additional background for the traffic related concerns, if the City Council provides direction to process the application, staff will direct that a traffic study be prepared that takes into account all planned roadway improvements within the study area as is City practice. This includes approved and planned improvements along Jeffrey Road, Sand Canyon Avenue and Marine Way in the vicinity of the project. As an example, these improvement projects include among others, the recently completed Sand Canyon Avenue grade separation of the AT&SF railroad tracks, and a future realignment of Marine Way at Sand Canyon to align Marine Way with the Northbound 1-5 off-ramp at its intersection with Sand Canyon. At the conclusion of the February 28 GPA seeping session, the City Council directed staff to bring back this item to the next hearing so that all five City Council members could be present (Councilmember Schott was absent). COMMISSION I BOARD I COMMITTEE RECOMMENDATION Not applicable. ANALYSIS Refer to February 28, 2017 Agenda Report. ENVIRONMENTAL REVIEW Refer to February 28, 2017 Agenda Report. ALTERNATIVES CONSIDERED Staff is seeking City Council direction whether to process the subject application, delay processing of the application, or discontinue processing the application altogether. Should the City Council direct that staff continue processing the GPA request, staff will evaluate the project in light of the areas of concern identified by staff in the February 28, 2017 City Council staff report as well as evaluating the additional issue areas specifically identified and directed by the City Council.

City Council March 14, 2017 Page 3 of 3 As an alternative to the above, the City Council could choose to direct that the processing of this application be delayed for a certain period of time (e.g. six months). This direction could be based on a City Council interest in having the newly formed Transportation Commission up and running, and being familiar with its new roles and responsibilities, prior to staff evaluating any GPA requests. As a final alternative, the City Council could choose to direct that staff discontinue processing the GPA request altogether. The City is not obligated to process a GPA request if there is no City Council interest or desire to do so. FINANCIAL IMPACT Refer to February 28, 2017 Agenda Report. REPORT PREPARED BY: Stephanie Frady, Senior Planner ATTACHMENT City Council Agenda Report Dated February 28, 2017 cc: Michael LeBlanc, Irvine Company (via email: MLeBianc@irvinecompany.com) Jeff Davis, Irvine Company (via email: JSDavis@irvinecompany.com) Tom Sestak, Irvine Company (via email: tsestak@irvine.company.com) Tina Andersen, Psomas (via email: tina.andersen@psomas.com) Peter Pirzadeh, Pirzadeh & Associates, Inc. (via email: pirzadeh@pirzadeh.com) Stephanie Frady, Senior Planner Joel Belding, Principal Planner Tim Gehrich, Deputy Director of Community Development Files: 00693260-PGA; 00693257-PZC

REQUEST FOR CITY COUNCIL ACTION MEETING DATE: FEBRUARY 28, 2017 TITLE: GENERAL PLAN AMENDMENT FOR A RESIDENTIAL UNIT AND NON-RESIDENTIAL BUILDING INTENSITY REALLOCATION WITHIN PLANNING AREA 12 (OAK CREEK) AND PLANNING AREA 40 (CYPRESS VILLAGE) ~- City Manager RECOMMENDED ACTION 1. Receive staff report. 2. City Council comments and questions. EXECUTIVE SUMMARY Irvine Company Office Properties filed a request for a General Plan Amendment (GPA) and Zone Change to reallocate residential units and non-residential development intensity within Planning Area (PA) 12 (Oak Creek) and PA 40 (Cypress Village). The proposal does not add overall building intensity to the General Plan, but rather shifts intensity between various categories of development within the two planning areas. The specific amendments proposed are intended to allow the following future development at three areas within PAs 12 and 40: PA 12 Site: Development of up to 1,710 Medium-High Density residential units, up to 25,000 square feet of neighborhood commercial uses, and an approximately five-acre park on the former Traveland USA site bound by Interstate (I) 5 and Sand Canyon Avenue. PA 40 East Site: Development of up to 250 Medium-High Density residential units, an approximately 1.7-acre park, and a 10,000-square-foot child care facility on an approximately 1.3-acre site located at the corner of Sand Canyon Avenue and Great Park Boulevard. PA 40 Marine Way Sites: Development of up to 530,000 square feet of nonresidential uses allowed under the 5.5J Medical and Science zoning district located at the State Route (SR) 133 and 1-5 interchange. The locations of these three areas are shown on Attachment 1. ATTACHMENT

City Council February 28, 2017 Page 2 of 6 City Council Resolution No. 87-108 requires a City Council scoping session for all General Plan Amendment requests. The purpose of the scoping session is to provide the City Council with advance knowledge of proposed General Plan Amendmenis and provide an opportunity for the City Council to raise comments and issues for subsequent analysis during the project review process and, if desired, to provide direction to proceed, not proceed or defer the proposed amendment. COMMISSION I BOARD I COMMITTEE RECOMMENDATION Not applicable. ANALYSIS Summary of Project Area PA 12: The General Plan sets forth fundamental land use patterns and policies for PA 12. The existing land uses designated in PA 12 include: Preservation/Golf Course, Recreation, Medium Density Residential, Medium-High Density Residential, HighDensity Residential, Multi-Use, Neighborhood Commercial, Community Commercial, Research and Industrial, and General Institutional. PA 12 encompasses approximately 1, 053 acres and is bound by Jeffrey Road to the northwest, 1-5 to the northeast, i-405 tu the southwest and Sand Canyon Avenue to the southeast. PA 40: The General Plan sets forth fundamental land use patterns and policies for PA 40. The existing land uses designated in PA 40 include: Recreation, Med ium Density Residential, Medium-High Density Residential, Multi-Use, Community Commercial, Research and Industrial, and Educational Facility. PA 40 encompasses approximately 634 acres and is bound by Jeffrey Road to the northwest, Trabuco Road to the northeast, PA 51 (Great Park) to the southeast, and 1-5 to the southwest. Proposed Amendment PA 12 Site: This site, the former location of Traveland USA, encompasses approximately 69.4 acres and is bound by the Oak Creek Golf Club to the northwest; nonresidential uses to the southwest beyond the railroad tracks; 1-5 along the northeastern project site boundary; and restaurant, gas station and hotel uses to the southeast across Sand Canyon Avenue. The underlying General Plan designation for this site is Research and Industrial. The proposed amendment would allow for the construction of up to 1,710 apartment units and up to 25,000 square feet of commercial development at this location. PA 40 East Site: This site, undeveloped with a General Plan designation of Community Commercial, encompasses approximately 22 acres and is bounded by Roosevelt to the southwest, SR-133 to the southeast, Great Park Boulevard (formerly Trabuco Road) to the northeast, and Sand Canyon Avenue to the

City Council February 28, 2017 Page 3 of 6 northwest. The proposed amendment will allow the construction of 250 multifamily dwelling units. The site was previously anticipated to be developed with a 205,000 square foot commercial center. PA 40 Marine Way Sites: This area, undeveloped with a General Plan designation of Research and Industrial, is comprised of two sites totaling 12.5 acres which are bisected by SR-133 and bounded by Marine Way to the north. The northwest site is undeveloped and bisected by the cement-lined Marshburn Channel, which is operated and maintained by the Orange County Flood Control District. There is an existing Orange County Transit Authority facility south of the site. 1-5 is located adjacent to and west of the northwest site; the SR-133 overpass is located to the east and separates this site from the southeast site. The proposed amendment would allow for the development of up to 530,000 square feet of nonresidential uses. Overall, the requested amendments would increase the total maximum number of residential units in these two Planning Areas from 9,481 to 10,824 units (an increase of 1,343 units) in exchange for a decrease in the maximum allowed non-residential intensity from 8,165,310 square feet to 6,644,842 square feet (a reduction of 1,520,468 square feet). Collectively, if the requested amendments were approved, future development on these 1 three sites would include a total of 1,960 Medium-High Density residential units, 25,000 square feet of neighborhood commercial, 530,000 square feet of non-residential uses, and 6.7 acres of parkland. Development of these sites would be subject to approval of subsequent subdivision map and master plan/conditional use permit applications by the Planning Commission. Areas Requiring Further Analysis The issues listed below will be analyzed in conjunction with this proposal. Staff requests City Council input with regard to additional issue areas that should be ana lyzed and considered for the proposed project. Traffic A Traffic Impact Analysis completed for the project will determine if additional or revised access is required for the subject sites. The Traffic Impact Analysis will analyze any potential impacts caused by the project to existing adjacent accessways. It will also evaluate whether there will be any traffic impacts to the roadways and intersections within the study area. 1 The 1,960 units include both the 1.343 new units discussed in this report as well as 6 17 reserved, but as yet unbuilt, un its in PA 40.

City Council February 28, 2017 Page 4 of 6 Site Access PA 12 Site: It is expected that vehicular access to this site would be provided from Burt Road at Sand Canyon Avenue and an extension of the Walnut Avenue intersection into the northwest portion of the project site. Improvements to the Walnut Avenue ramp at 1-5 would also be required. The interplay between the Burt Road entrance and the on- and off-ramps to the 1-5 will be evaluated. Finally, the location and design of the Jeffrey Open Space Trail crossing over the extension of Walnut Avenue will be considered. PA 40 East Site: It is expected that vehicular access to this site would be provided from Sand Canyon Avenue and Roosevelt. PA 40 Marine Way Sites: It is expected that access to these sites would be provided from existing Marine Way on an interim basis and ultimately from the future alignment of Marine Way. The interplay between these sites and the entrance to the Great Park, located to the east, will be evaluated. Finally, the pedestrian connectivity of the residential sites to nearby services and public trails/recreation areas will be considered. Public Services Staff will evaluate the availability of nearby public services. Particular services to be addressed include public transit, roadways, consumer goods and services, and fire and police protection. Utilities Staff will evaluate the availability of utilities to serve the project sites. Particular utilities to be addressed include electricity, water, sewer, gas, phone and internet. Staff will analyze whether the installation of any new utility infrastructure or connections to existing facilities, including undergrounding of existing overhead electric lines, are necessary. Land Use Compatibility Staff will evaluate the appropriateness of additional residential and nonresidential development at the three sites given the proposed density and existing land uses in the surrounding area. As part of this compatibility analysis, staff will evaluate whether or not the addition of 1,343 residential units and the removal of 1,520,468 square feet of nonresidential development potential from the General Plan will have a fundamental and adverse impact on the existing and future character of the project site, adjacent communities (i.e., the residential neighborhoods immediately surrounding the PA 40 East Site) and surrounding nonresidential development.

City Council February 28, 2017 Page 5 of 6 Site Aesthetics Per the development standards for the Medium-High Density zoning district set forth in the Irvine Zoning Ordinance, residential development on the PA 12 Site and PA 40 East Site may reach 50 feet in height. The height limit for commercial development on the PA 12 Site would be 50 feet. There is no limit on the height for nonresidential development on the PA 40 Marine Way Sites. As part of the Environmental Impact Report (EIR) review of this project, visual simulations will be required and analyzed. Staff will also evaluate the aesthetic impacts of development on these three large vacant parcels on surrounding areas, as well as SR-133 and the 1-5. Staff will also review the proposed architecture for the three sites and confirm that it complies with the standards set forth in Chapters 9-12 and 9-40 of the Irvine Zoning Ordinance. Staff will ensure that all of the aforementioned issues are considered as part of the evaluation of this project along with any other issues identified by the City Council. Project Schedule and Public Review In addition to the GPA, a Zone Change and associated environmental evaluation (as discussed in the following section) will be processed. The applicant seeks to conclude the City's GPA!entitlement process by early 2018. The applicant's intent is that the project would be implemented in phases over an approximately five- to seven-year time frame. With regard to public outreach for this project, staff will utilize the following media: standard public noticing procedures, a page with regular updates on the City's website, as well as email and letters to communicate regularly with interested and affected property owners, HOAs, the Native American consultation list and outside agencies throughout the processing of these applications. Required Native American consultation is already underway. Project notification and consultation requests were sent out to affected tribes on January 26, 2017. The next opportunity for public review will occur at a public EIR Scoping Meeting. Staff anticipates that this meeting will take place in March 2017. ENVIRONMENTAL REVIEW The project is subject to California Environmental Quality Act (CEQA) review for which the City of Irvine serves as the "Lead Agency." Based on the results of the analysis presented in the draft Initial Study prepared for this project, the City of Irvine has determined that the proposed project has the potential to result in significant impacts and a Program EIR is the appropriate environmental document for the proposed project. The project Initial Study will be made available for a 30-day public review and comment period at the end of February 2017.

City Council February 28, 2017 Page 6 of6 ALTERNATIVES CONSIDERED The City Council could choose to direct staff to not proceed with the subject General Plan Amendment; or, to defer the evaluation of the amendment to a future date. FINANCIAL IMPACT General Plan Policy A-5(h) requires the preparation of a fiscal analysis for all GPA applications to evaluate the long-term fiscal impacts to the City. Consistent with this policy, a fiscal impact analysis will be prepared by the City's Budget Office and presented to decision-makers during the public hearing process. REPORT PREPARED BY: Stephanie Frady, Senior Planner ATTACHMENT Attachment 1: PAs 12 and 40 Regional Location and Local Vicinity Exhibit cc: Jeff Davis, Irvine Company (via email: JSDavis@irvinecompany.com) Tom Sestak, Irvine Company (via email: tsestak@irvine.company.com) Tina Andersen, Psomas (via email: tina.andersen@psomas.com) Peter Pirzadeh, Pirzadeh & Associates, Inc. (via email: pirzadeh@pirzadeh.com) Stephanie Frady, Senior Planner Joel Belding, Principal Planner Tim Gehrich, Deputy Director of Community Development Files: 00693260-PGA; 00693257 -PZC

Exhibit 1 REGIONAL LOCATION AND LOCAL VICINITY Anaheim Westminster J Ci5 Santa Ana Huntington Beach Costa Mesa \.. 'w.. <Ji; Irvine ~ Laguna Beac h D Project Site Boundary IDI Planning Areas Planning Areas 12 and 40 General Plan Amendment and Zone Change Project Irvine, CA ATTACHMENT TO STAFF REPORT DATED 2/28/17