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PC20-503RESOLUTION NO. PC 20-_______ A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MENIFEE, CALIFORNIA RECOMMENDING APPROVAL OF DEVELOPMENT AGREEMENT NO. 2018-277 BY AND BETWEEN THE CITY OF MENIFEE AND BLC FLEMING LLC Whereas, on November 15, 2018, the applicant BLC Fleming LLC (“Applicant”) filed a formal application with the City of Menifee for Development Agreement No. 2018- 277 (“Project”) which proposes a statutory development agreement between the Applicant and the City of Menifee (“Development Agreement”) concerning the development of The Legado Specific Plan (“Project”) for establishment of provisions for development of the Project such as, but not limited to infrastructure improvements, park benefits, vesting of development rights and timing of public improvements and other benefits as noted in the proposed Development Agreement; and Whereas, the application for the Development Agreement is being processed concurrently with applications for a Specific Plan (SP2017-187) which establishes land uses and development standards for 331 acres, change of zone (CZ2017-188) to change the zoning of the site from Fleming Ranch Specific Plan to the Legado Specific Plan; Tentative Tract Map No. 2017-264 (TM37391) a large lot subdivision of the specific plan area for conveyance purposes; Vesting Tentative Tract Map No. 2018-137 (TM37408) for the subdivision of the western portion of the Specific Plan area into 475 residential lots; and Vesting Tentative Tract Map No. 2018-138 (TM37409) for the subdivision of the eastern portion of the Specific Plan area into 547 residential lots (collectively, the applications are referred to as the “Project” or “Legado Project”); and, Whereas, on May 13, 2020, the Planning Commission, held a duly noticed Public Hearing on the Project, considered all public testimony as well as materials in the staff report and accompanying documents, which hearing was publicly noticed by a publication in The Press Enterprise (a newspaper of general circulation), an agenda posting, notices placed on the project site, and notice to property owners within 300 feet of the Project boundaries, and to persons requesting public notice; and Whereas, the Development Agreement has been prepared, processed, reviewed, heard, and approved in accordance with applicable law, including but not limited to Section 65864 et seq. of the Government Code; and, NOW, THEREFORE, the Planning Commission of the City of Menifee resolves as follows: Section 1: The proposed development agreement is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan. The General Plan land use designation of the site is Specific Plan (Fleming Ranch); however, the Fleming Ranch Specific Plan was never adopted nor approved. At the time of the preparation of the General Plan in 2013, the Fleming Ranch Specific Plan project was considered to be in process and the Land Use Element Background Report specifies that the specific plan land use designation represents both approved or in-process projects. It was assumed that the Fleming Ranch Specific Plan would be approved soon after the adoption of the General Plan, which occurred in December 2013, and if not, the developer of the project area would need to process a Specific Plan for the development of the area. DocuSign Envelope ID: E008B389-D316-4F40-892A-B78D66DB5A68 503 Resolution Development Agreement 2018-277 May 13, 2020 The intent of the Specific Plan general plan land use designation is to recognize areas where an existing specific plan is in place and to provide policies, standards and criteria for the development or redevelopment of these areas. Since no Specific Plan is in place for the property, the applicant has prepared and processed the Legado Specific Plan (which was previously called the Fleming Ranch Specific Plan) to provide the policies, standards and criteria for development of the area. The proposed Legado Specific Plan and the Development Agreement are consistent with the General Plan. The Specific Plan provides land uses, development standards and design guidelines that implement the goals and policies of the General Plan. Roadways, trails, bike lanes, enhanced landscape corridors, and a possible opportunity for a City gateway monument have been incorporated into the Specific Plan consistent with the General Plan. The Development Agreement provides a mechanism to ensure the orderly development of the Specific Plan. Existing General Plan land use designations north of the Project site include “Commercial Office (CO),” “Commercial Retail (CR),” “2.1-5 dwelling units per acre (du/ac) Residential (2.1-5 R),” and “Rural Residential – 5 acre minimum (RR5).” Lands to the east of the Project site are designated as “2.1-5 du/ac Residential (2.1-5 R),” “5.1-8 du/ac Residential (5.1-8 R) and “Rural Residential – 5 acre minimum (RR5).” Lands to the south of the Project site are designated as “Economic Development Corridor (EDC),” “Public/Quasi Public Facilities (PF),” “Recreation (OS-R),” and “5.1-8 du/ac Residential (5.1-8 R).” Properties located to the west of the Project site are designated as “Economic Development Corridor (EDC)” and “2.1-5 du/ac Residential (2.1-5 R).” Where existing residential uses occur, the project proposes residential uses or recreational uses. Commercial planning areas are adjacent to Encanto Road, away from existing residential uses. The Planning Area containing the proposed sports park has incorporated buffering through landscaping and lighting will be shielded. The Project is compatible with surrounding land uses. In addition, the Specific Plan and associated Development Agreement are consistent with the following City of Menifee General Plan policies:  Policy LU-1.1: Concentrate growth in strategic locations to help preserve rural areas, create place and identity, provide infrastructure efficiently, and foster the use of transit options. The Project places appropriate uses within an area designated Specific Plan per the General Plan (GP). Growth has been concentrated in this strategic location to help preserve rural areas. Through the land use plan, development standards, and the design guidelines, the Project will create a unique place and develop its own identity. The Land Use Plan, Circulation Plan, Grading Plan, and Phasing Plan of the Specific Plan will ensure that that development will provide infrastructure efficiently. A combination of pathways, paseos, walkways, or similar pedestrian accesses are provided that connect the individual Planning Areas in the SP to commercial areas and recreation areas. The Project DocuSign Envelope ID: E008B389-D316-4F40-892A-B78D66DB5A68 Resolution Development Agreement 2018-277 May 13, 2020 includes bus stops and shelters to promote transit. The Specific Plan also accommodates NEV routes consistent with the General Plan and a future I-215 overcrossing at Rouse Road.  Policy LU-1.2: Provide a spectrum of housing types and price ranges that match the jobs in the city and make it possible for people to live and work in Menifee and maintain a high quality of life. The Project provides a variety of lot sizes that can accommodate different housing types and price ranges. The Project contains residential, commercial and/or office, and recreational uses, which makes it possible for people to live and work in Menifee and maintain a high quality of life.  Policy LU-1.5: Support development and land use patterns, where appropriate, that reduce reliance on the automobile and capitalize on multimodal transportation opportunities. The Project provides pedestrian connections, trails, bike lanes, NEV lanes and bus stops to facilitate multimodal transportation. The Project was designed to add pedestrian connections at the ends of cul-de-sacs to allow for more efficient access by residents to other streets and parks, to promote walkability. In addition, a pedestrian connection was added from the residential portion of project to the commercial area to provide another path of travel to encourage walking of future residents to the future commercial uses.  LU-1.7 Ensure neighborhood amenities and public facilities (natural open space areas, parks, libraries, schools, trails, etc.) are distributed equitably throughout the City. The Project includes a Community Park, Neighborhood Parks, Private Recreation Center and Paseos. The parks and paseos are distributed strategically through the Project area so that recreational amenities are nearby all residents. The Paseo Legado design provides a recreational amenity, but also a connection between the two neighborhood parks and private recreation center. A Community Center is planned at the Community Park.  LU-2.1 Promote infill development that complements existing neighborhoods and surrounding areas. Infill development and future growth in Menifee is strongly encouraged to locate within EDC areas to preserve the rural character of rural, estate, and small estate residential uses. The proposed Project is located within an urbanized area, near Interstate 215 and the McCall Boulevard Interchange. The Project site is primarily surrounded by existing residential uses, residential developments that are currently under construction, a middle school, and commercial businesses. The proposed Project will promote infill development and complements these existing and proposed adjacent land uses. DocuSign Envelope ID: E008B389-D316-4F40-892A-B78D66DB5A68 Resolution Development Agreement 2018-277 May 13, 2020  Policy C-1.1 Require roadways to: Comply with federal, state and local design and safety standards. The Project includes roadway standards for Encanto Drive, Sherman Road, Rouse Road and Chambers Road which will be implemented through the Development Agreement and tract maps that include Conditions of Approval which require the dedication and installation (or bonding) of roadway improvements consistent with the City’s General Plan and the City’s Public Works and Engineering Department Standard Details.  Policy C-2.2 Provide off-street multipurpose trails and on-street bike lanes as our primary paths of citywide travel and explore the shared use of low speed roadways for connectivity wherever it is safe to do so. The Project provides bike lanes and NEV lanes consistent with the General Plan. Trails and expanded sidewalks are also provided throughout the Project.  Policy CD-1.3: Strengthen the identity of individual neighborhoods- communities with entry monuments, flags, street signs, and/or special tree streets, landscaping, and lighting. The Project includes entry monuments with a common architectural theme that will strengthen the identity of the development. Special trees and landscaping have been incorporated into the overall design of the monuments and streetscapes. Expanded parkways are also included on several streets to enhance the streetscapes. Round- abouts are provided within the Project to add to the community identity as well.  CD-3.8 Design retention/detention basins to be visually attractive and well integrated with any associated project and with adjacent land uses. The Project basins have been designed to include substantial landscaping and to be screened from adjacent roadways.  CD-6.1 Recognize the importance of street trees in the aesthetic appeal of residential neighborhoods and require the planting of street trees throughout the City. The proposed Project includes street trees throughout the project site.  HE-2.4 Parks and Recreation. Enhance neighborhood livability and sustainability by providing parks and open spaces, planting trees, greening parkways, and maintaining a continuous pattern of paths that encourage an active, healthy lifestyle. As described above, the Project provides parks and open spaces, including expanded parkways, trees and a pattern of pathways that encourage an active healthy lifestyle. DocuSign Envelope ID: E008B389-D316-4F40-892A-B78D66DB5A68 Resolution Development Agreement 2018-277 May 13, 2020  HE-2.5 Public Facilities and Infrastructure. Provide quality community facilities, infrastructure, traffic management, public safety, and other services to promote and improve the livability, safety, and vitality of residential neighborhoods. The Project incorporates quality community facilities, including parks, is conditioned to install infrastructure including sewer, water, roadways, and will promote and improve the livability, safety and vitality of the proposed residential neighborhoods and surrounding existing neighborhoods.  OSC-1.2: Require a minimum of five acres of public open space to be provided for every 1,000 City residents. The Project is required to provide 16.8 acres of public open space based on the number of dwelling units proposed (1,061 d/u per the Specific Plan). The Project provides 20.8 acres of public open space and exceeds the minimum requirement of five acres for every 1,000 City residents. Consistency with Housing Element. The Housing Element has identified sites within the Specific Plan area that meet the City’s affordable housing sites under the RHNA. Recently adopted Senate Bill 166 prohibits cities from allowing their inventory of available sites to be insufficient to meet their remaining unmet RHNA share for lower and moderate-income housing. California Government Code Section 65863 requires cities to make certain findings that the remaining housing element sites can accommodate the RHNA requirements by income level. The Menifee Housing Element states that General Plan designations in the range of 20.1-24.0 dwelling units/acre can be used to meet the City’s Very Low and Low income requirement of 2,495 units. The City has designated a number of parcels with that residential density to both vacant land and under- utilized sites in Romoland towards meeting the Very Low and Low RHNA numbers for 2014-2021. All these parcels provide for a total 3,063 potential units thereby exceeding the RHNA criteria by 568 units. The Housing Element assumed the Project site would provide 344 units at the 20.1-24.0 dwelling units/acre density. If these 344 units were removed from the available site inventory, there would still be a remaining extra capacity of 224 planned Very Low and Low income units within the City of Menifee above the City’s requirement of 2,495 Very Low and Low income units. Thus, implementation of the Project would not conflict with the City’s ability to meet the affordable housing sites as identified in the Housing Element. In addition, the Housing Element also assumes that General Plan designations in the range of 2.1 to 20R can be used to meet the City’s Moderate and Above Moderate income requirement of 3,750 units. The City has designated a potential of 21,134 units allowed on vacant parcels with these residential densities towards meeting the 1,140 Moderate income and the 2,610 Above Moderate income RHNA unit numbers for 2014-2021. The DocuSign Envelope ID: E008B389-D316-4F40-892A-B78D66DB5A68 Resolution Development Agreement 2018-277 May 13, 2020 Housing Element assumed Project site would provide 1,384 units within the 2.1 to 14R density. The Project allows up to 1,061 dwelling units in the 2.1- 5R density designation. If 304 units were removed from the vacant land inventory, there would still be remaining extra capacity of 20,830 planned Moderate and Above Moderate income units. Thus, implementation of the Project would not conflict with the City’s ability to meet the affordable housing sites as identified in the Housing Element. The Project would be consistent with or otherwise would not conflict with any of the adopted Housing Goals. Additionally, the Project would provide for up to 1,061 residential homes on lot sizes ranging from 5,000 s.f. to 10,000 s.f. in size, which would assist the City in meeting its share of the Moderate and Above Moderate regional housing need. Additionally, open space has been set aside to preserve a knoll in the northeast corner of the site and densely planned landscape is provided along Encanto Drive. A community park/community center and paseos/neighborhood parks proposed by the Project would provide community trails and paths that encourage an active, healthy lifestyle. Infrastructure and transportation plans have been coordinated in the proposed Legado Specific Plan to ensure phasing of facilities with development. Furthermore, implementation of the Project would not conflict with the City’s ability to meet the affordable housing requirements due to the extra capacity of potential sites in the City of Menifee. Accordingly, the Project would not conflict with the Housing Element, and impacts would be less than significant. For these reasons, the proposed Specific Plan No. 2017-187 is consistent with the City’s General Plan objectives, policies, and programs. The Specific Plan is not inconsistent with any element of the General Plan. 2. Consistency with the Zoning Code. The proposed Development Agreement is compatible with uses authorized in, and the regulations prescribed for, the zone in which the real property will be located. On December 18, 2019 the City of Menifee adopted a new zoning map that went into effect on January 18, 2020. Pursuant to the new zoning map, the Project site’s zoning designation is SP “Fleming Ranch Specific Plan Zone.” Thus, CZ No. 2017-188 would change the site’s updated existing zoning designation from “Fleming Ranch Specific Plan Zone” to “Legado Specific Plan Zone.” The Specific Plan includes the allowed uses and development standards applicable to property within the Specific Plan. The allowed uses and development standards are consistent with those allowed in the latest version of the Economic Development Corridor - McCall Boulevard zone (EDC-MB) for the commercial areas and consistent with the corresponding residential zones of Menifee Municipal Code. Properties located north of the Project site are designated for “Low Density Residential-1 (LDR-1)”, Low Density Residential-2 (LDR-2)”, “Commercial Office (CO)”, and “Commercial Retail (CR)”. Properties located to the east of the Project site are classified as “Rural Residential, 5-acre minimum (RR 5)” and “Planned Development District (PDO-1)”. Properties located to the south of the Project site are zoned “Economic Development Corridor-McCall Boulevard (EDC-MB)”, “Public/Quasi-Public Facilities (PF)”, and “Low DocuSign Envelope ID: E008B389-D316-4F40-892A-B78D66DB5A68 Resolution Development Agreement 2018-277 May 13, 2020 Medium Density Residential (LMDR)”. Properties located to the west of the Project site will be classified as EDC-MB and LDR-2. The proposed Project is compatible with the surrounding zoning. 3. The proposed development agreement is in conformity with and will promote public convenience, general welfare and good land use practice. The Project would facilitate the development of a Specific Plan that includes residential and commercial uses. The residential uses proposed are similar to existing development surrounding the Project site. Commercial uses proposed within the Project are located adjacent to Encanto Road and a buffer is established between the commercial component of the Project and proposed residential uses. The Project is compatible with the surrounding land uses, general plan land use designations and zoning classifications. The Project incorporates quality design, trails, parks, landscaping and other improvements which will enhance the area upon construction. The proposed Development Agreement provides for the orderly construction of road improvements, utilities, drainage and other improvements. The proposed Development Agreement is consistent with the Specific Plan and will assist the Applicants in implementation of the Specific Plan. The proposed Development Agreement is in conformity with and will promote public convenience, general welfare and good land use practice 4. The development agreement will not create conditions materially detrimental to the public health, safety and general welfare within the City. The Development Agreement will not result in conditions detrimental to the public health, safety, or general welfare. The associated entitlements have been reviewed and conditioned by the City of Menifee Community Development, Engineering, Building and Safety and Fire Departments to ensure that it will not create conditions materially detrimental to the surrounding uses. Conditions of approval include substantial landscaping, park and other amenities to support the proposed residential component, roadway improvements consistent with the General Plan, expanded sidewalks and a network of bike lanes and NEV lanes to encourage non- vehicular travel, fire infrastructure, and drainage improvements that will benefit the project site and surrounding areas. In addition, environmental impacts resulting from the implementation of the Project have been analyzed in an Environmental Impact Report (EIR). The EIR determined that potential impacts would all be less than significant with the necessary mitigation incorporated, except for significant and unavoidable impacts to Air Quality, Greenhouse Gas, and Traffic. A Statement of Overriding Considerations is included for the EIR stating that the impacts of the project are acceptable and outweighed by the benefits of the Project. With the exception of these environmental categories (Air Quality, Greenhouse Gas, and Traffic) the proposed entitlements are not anticipated to create conditions materially detrimental to the public health, safety and general welfare or injurious to or incompatible with other properties or land uses in the project vicinity. The proposed Development Agreement does not contain any provisions that would create conditions materially detrimental to the public health, safety and general welfare or injurious to or incompatible with other properties or land uses in the Project vicinity and within the City. DocuSign Envelope ID: E008B389-D316-4F40-892A-B78D66DB5A68 Resolution Development Agreement 2018-277 May 13, 2020 5. Orderly Development. The development agreement would not adversely affect the orderly development of property and surrounding area, or the preservation of property values. The proposed Development Agreement would assist with and would not interfere with the Specific Plan and implementing maps. The timing of infrastructure, including parks, was carefully considered and coordinated consistent with the Environmental Impact Report for the Project and Project construction and phasing. Therefore the Development Agreement would not adversely affect the orderly development of the surrounding area. The proposed Development Agreement would not alter the land uses as proposed in the Specific Plan. The proposed Development Agreement would not conflict with surrounding existing and planned land uses and would not have the potential to adversely affect property values. The proposed Development Agreement would assist with the implementation of the Specific Plan, which includes improvements to surrounding roads and substantial landscaping and the construction of parks. The improvements associated with the Specific Plan implementation are anticipated to enhance and improve the surrounding area and not adversely affect property values. 6. Encourage Development. The development agreement would promote and encourage the development of the proposed project by providing a greater degree of requisite certainty. The assurances provided to the applicant through the proposed Development Agreement, such as vesting and timing for public improvements, would provide greater certainty and reduced risk that would encourage development as approved under the Specific Plan and the infrastructure associated with it that would serve the surrounding area. 7. The proposed development agreement that includes a subdivision, and any tentative map prepared for the subdivision, will comply with the provisions in Government Code Section 66473.7. The Development Agreement includes three (3) subdivisions as described aboved. A Water Supply Assessment was prepared and approved by the Eastern Municipal Water District for the project. The Project complies with the provisions of Government Code Section 66473.7 8. Compliance with CEQA. Processing and approval of the permit application are in compliance with the requirements of the California Environmental Quality Act. The Legado Environmental Impact Report (“EIR”) (SCH# 2009091118), Project and recommended for certification by the City Council pursuant to a separate Resolution. The Specific Plan at issue is consistent with the EIR, which the Planning Commission has considered as part of its proceedings. NOW THEREFORE, the Planning Commission of the City of Menifee hereby recommends to the City Council the following: DocuSign Envelope ID: E008B389-D316-4F40-892A-B78D66DB5A68 Resolution Development Agreement 2018-277 May 13, 2020 1. That the City Council determine that the “Findings” set out above are true and correct. 2. That the City Council finds that the facts presented within the public record and within the Planning Commission Resolution provide the basis to adopt an Ordinance approving Development Agreement No. 2018-277 as attached to this Resolution. PASSED, APPROVED AND ADOPTED this the 13th day of MAY, 2020. _________________________ Randy Madrid, Chairman Attest: ___________________________ Stephanie Roseen, Deputy City Clerk Approved as to form: ______________________________ Thai Phan, Assistant City Attorney DocuSign Envelope ID: E008B389-D316-4F40-892A-B78D66DB5A68 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF MENIFEE ) I, Stephanie Roseen, Deputy City Clerk of the City of Menifee, do hereby certify that the foregoing Planning Commission Resolution No. PC20- was duly adopted by the Planning Commission of the City of Menifee at a meeting thereof held on the 13 day of May 2020 by the following vote: Ayes: Noes: Absent: Abstain: _______________________________ Stephanie Roseen, CMC Deputy City Clerk DocuSign Envelope ID: E008B389-D316-4F40-892A-B78D66DB5A68 None None 503 Karwin, Phillips, Thomas, Diederich, Madrid None