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sr-071409-3a~® ~;tYO, City Council Report Santa Monica City Council Meeting: July 14, 2009 Agenda Item: ~B To: Mayor and City Council From: Eileen Fogarty, Director of Planning and Community Development Subject: Update on Progress Made Towards a Revised Land Use and Circulation Element for City Council Feedback and Direction Recommended Action Review progress on development of the draft LUCE and provide input and direction on key elements. Executive Summary Two recent LUCE community workshops provided additional community input for incorporation into the draft LUCE by addressing special study areas including neighborhood preservation, community benefits, affordable and workforce housing, and methods for monitoring the plan. On June 2, 2009, nearly 100 residents came together to discuss conservation tools and strategies for their neighborhoods. The workshop encouraged neighborhood residents to identify the special attributes of their neighborhoods for conservation and built understanding of the range of methods and tools for addressing conservation priorities. On July 7, 2009, a workshop was held to engage the community in a discussion of community needs and benefits, such as affordable and workforce housing, open space, creative arts, historic preservation, and traffic demand management. The presentation expanded on the LUCE Strategy Framework concept of a low permitted ("by right") base development with measures to encourage the provision of various community needs. The workshop presented approaches for achieving affordable .housing above and beyond the existing Affordable Housing Production Program (AHPP) as well as workforce housing units.. Keyser Marston Associates provided a preliminary assessment of project proformas and the economic feasibility of providing these community needs. Finally, the workshop presented a concept for managing and monitoring future change for community feedback. The system and measurement tools will enable the community and the city to influence the rate and amount of change on a periodic basis. Factors include the transportation performance measures being developed with the Travel Demand Model, as well as measurements of complete and connected communities, sustainable economy, municipal fiscal health, neighborhood conservation and public engagement. The range of factors to manage and monitor change will be used to measure the success over time of the significant innovations of the LUCE. These include improvements since the 1984 General Plah in the type, quality and location of the City's land uses and the integration of land use and transportation to reduce congestion. Specifically the LUCE emphasizes a shift from regional commercial to mixed-use residential with neighborhood-serving uses, focuses change on locations near transit to reduce trips and minimize impacts, and introduces contextual design that respects adjacent residential. The .results of the workshop will be shared with the Council in the July 14th presentation. Discussion The City Council reviewed the LUCE Strategy Framework in July 2008 and provided direction on key issues. These selected issues have been advanced and we have conducted additional public workshops to obtain community input. These key issues include: • Establishing methods to conserve residential neighborhoods • Testing the private sector's economic feasibility to provide transportation improvements and traffic mitigation, affordable and workforce housing and community benefits for development above the permitted ("by right") base • Identifying monitoring and management strategies to influence the pace and timing of future change • Identifying strategies and policies for implementing the "No Net New Trips" goal This work is being integrated into the Draft LUCE and tied to key goals and policies. The work on neighborhood conservation solidifies and augments the residential preservation strategies in the LUCE that protect all of the city's residential areas against intrusive. change. The testing of economic feasibility will refine the programs and policies for the transit areas that will control change to ensure that it serves the needs of the community in the. best way possible. The work on phased implementation and management would provide mechanisms to monitor and control our progress and look city-wide at the pace and location of what is happening. This includes city-wide indicators that provide a snapshot of our success. A key component of these indicators is the performance of the transportation system and the limitation on net new vehicular trips as envisioned by the draft LUCE's aggressive transportation demand management policies and monitoring systems. 2 NEIGHBORHOOD CONSERVATION Nearly 100 people attended the Neighborhood Conservation workshop on June 2, 2009. In groups organized by neighborhood, participants identified the special attributes of their area, as well as specific challenges. Participants also explored a menu of conservation solutions, and identified ones that would best address their neighborhood's needs. Conservation methods included: • Conservation Overlay Districts • Modification of Development Standards • Changes to Demolition Regulations • Changes to Development and Public Input Processes • Changes to Policy • Educational Programs The neighborhood conservation concept was very well-received and supported by all participants. It could offer a greater level of certainty and control in the residential neighborhoods that addressed many of the concerns and issues identified earlier in the LUCE process. Many specific characteristics were identified for conservation in each neighborhood, with some shared among neighborhoods and others unique to the area. The workshop confirmed the uniqueness of the neighborhoods, and need to utilize tailored techniques for each area. Characteristics mentioned for conservation by multiple neighborhoods included mature shade trees and landscape areas, courtyard housing, multi-family apartments, walkable neighborhoods, and vibrant local businesses. A full summary of workshop comments by neighborhood is available at www.shapethefuture2025.net. A range of conservation techniques are needed to address the diversity of neighborhoods and characteristics. PCD is developing city-wide neighborhood conservation strategies to be included in the Draft LUCE, as well as specific techniques that would be most applicable to the special characteristics of each neighborhood. Additionally proactive strategies and neighborhood improvements ranging from greening, improving walkability and strengthening connections to services will be identified. Some of the initial concepts are conserving courtyard housing, limiting the 3 issuance of demolition permits, and protecting open landscape areas and the urban forest. The information obtained at the public workshop was critical in defining these next steps. Further assessment is underway including the legal feasibility of aspects of the potential program elements. COMMUNITY NEEDS AND PRIORITIES WORKSHOP On July 7, 2009, a workshop was held to engage the community in a discussion of achieving community needs and benefits, project feasibility testing, and measuring and monitoring future change including use of the transportation model. Community Needs and Project Feasibility Testing The LUCE approach would provide for new development to contribute to the community by incorporating community benefits in the form of TDM, physical, social, cultural, preservation, and affordable housing. This concept was first discussed with the community in the Boulevards workshops where the community identified a range of desired benefits. Keyser Marston Associates (KMA) is analyzing the economic feasibility. of the private sector's providing community needs in return for the ability to build above the base development envelope. In no case would the building be allowed to exceed the envelope identified in the LUCE, including step-backs and heights adjacent to residential. KMA will also be exploring the feasibility of providing these needs with a lowered building envelope. The City has retained Keyser Marston Associates (KMA) for their understanding of the local real estate market and project development costs. They have worked with Santa Monica in the past on our nexus studies for Childcare exaction fees, and Public Art fees. They bring an understanding of the myriad of factors that affect the feasibility of land use and property development. They have .also worked with the City's Housing and Economic Development Department on assessing public project feasibility and estimating costs. 4 The KMA assessment will include consideration of the market subareas that exist in the City as reflected in variations in leasing rates and property costs, the variable costs of types of public improvements and facilities, and the return on investment required to make a project with community needs economically feasible in the marketplace without public subsidy. The LUCE community workshop on July 7, 2009 engaged the community in prioritizing their desired needs and benefits within proposed transit corridors and districts in the LUCE. This opportunity to tailor implementation to a project area will ensure that complete communities and neighborhoods will be built in the future. Community Priorities identified in the workshops and being refined include: • Transportation Demand Management • Community Needs - o Physical Improvements - extension of grid, connecting pathways, enhanced streetscape/landscape parkways, plazas and ground level open space o Social/Cultural facilities -childcare, senior care, creative arts + culture o Preservation of landmarks • Affordable housing above and beyond the AHPP, and Workforce housing Affordable and Workforce Housing The LUCE will support and complement the City's existing Affordable Housing Production Program (AHPP). Integration of the LUCE community benefits program with the AHPP is being explored to ensure smooth future implementation through the Zoning Ordinance Update. Some key elements of this integration are: • Projects would sti11 be required to provide the minimum affordable housing units (Very Low; Low and Moderate) as required by the City's AHPP. • Above the base building envelope, projects would provide additional affordable and workforce housing in exchange for increased height and floor area up to, but not exceeding, the envelopes defined in the LUCE. This bonus is in addition to what the City currently provides. • In-lieu fees for projects seeking a building envelope beyond the base are being evaluated. The elimination of in-lieu fees would provide for affordable housing to 5 be built along the transit corridors where there is local-serving retail and access to transit opportunities. • A weighed system would be developed whereby the number of affordable or workforce units needed to qualify for an envelope increase would vary based on the income category -for example fewer Very Low income units would be required than Workforce income units for the same bonus. MANAGING AND CONTROLLING THE FUTURE The draft LUCE conveys the community's vision for Santa Monica for the next 20-30 years, with specific goals, policies and objectives. It is a conservation plan that protects all the residential districts and refocuses commercial areas to residential mixed-use from regional-serving office. It represents a paradigm shift in the integration of land use and transportation in the transit corridors and districts, and it puts in place the: ability to pace change. These and other critical LUCE innovations improve upon the 1984 General Plan vision for what we can achieve, as well as the way in which we achieve it. The table below summarizes LUCE innovations that address these community concerns. Critical LUCE Innovations for Future Performance Type of The LUCE modifies the proportion of Uses residential and commercial growth, to encourage a better balance between jobs and housing. The LUCE encourages residential uses and supporting local- serving retail within the transit areas, while reducing the overall commercial and job- generating uses thus reducing trips and traffic for everyone. Location The LUCE conserves the residential of Uses neighborhoods, and focuses change in the transit-served commercial corridors Wilshire, Santa Monica, Lincoln, Pico, and at the future Expo light rail stations at Bergamot, Memorial Park and Downtown. Examples • Reduces office uses, • Reduces regional-serving commercial • Increases local-serving business, • Mixed-use districts in transit areas • Conserves neighborhood • Shifts housing opportunities adjacent to transit and local-serving retail • Incorporates TDM programs and policies. 6 Quality The LUCE requires thoughtful contextual of the design in the transit areas that City incorporates setbacks and building mass reduction adjacent to residential neighborhoods, and quality urban design in all projects. Rate of The LUCE incorporates monitoring and Change management tools to influence the pace of change. • Increased public review • Increased open space • Urban design guidelines • Setback and step backs adjacent to residential areas Periodic review to monitor performance and progress Indicators for fiscal health, community completeness, neighborhood conservation, transportation performance, and public involvement Ability to put on the brakes to control rate of change. TDM enhancements to reduce existing trips Amount The LUCE modifies land use designations . Overall less change of and use controls to reduce the total Reduced commercial Change amount of growth allowed over the life of growth the plan, in comparison to the 1984 Modified residential growth General Plan. Enhanced transit The LUCE will incorporate control mechanisms that allow the City to adapt and change the plan according to new circumstances. When needed this allows for the Council to "put on the brakes" so the City can assess, evaluate,-and adapt our policies to new opportunities and challenges. Implementation of the LUCE will be controlled by three primary factors: the market's reaction to changing conditions (e.g. arriving of the Expo light rail), the City's pro-active investments/interventions (e.g. shared parking districts for activity centers), and the long-term monitoring and management of progress toward LUCE goals and policies. 7 Measurement Tools. Evaluation, and Adaptation In order to measure progress toward LUCE goals and policies, the plan-will incorporate periodic evaluations based on a range of key indicators. The Council approved the funding of the transportation demand model which will evaluate factors related to travel such as corridor travel time, mode shift away from the auto, air quality, congestion, and other issues. To complement transportation, a range of other indicators are being developed. The indicators are being developed from some already used to measure the progress of the Sustainable City Plan and are critical to the implementation and phasing of growth in the transit areas identified in the LUCE. The concept of indicators was presented at a July 7 workshop where the community was asked to review and provide feedback on some of the most important indicators to measure. Trends will be collected for the following five broad categories: 1) Complete and Connected Communities This category identifies progress toward the LUCE vision of sustainable, accessible and complete neighborhoods where residents can shop, recreate, and socialize locally. Specifically, factors to evaluate could include the availability of local-serving businesses, diversity of housing opportunities in the transit areas, and open space. 2) Neighborhood Conservation This category addresses the key preservation strategies for residential areas, including preservation of existing housing, progress on the neighborhood livability factors, i.e. improved landscaping, sidewalks, and mass and scale compatibility of new development. 3) Transportation This. category includes the no net new trips program as measured by our transportation demand model, and evaluates the ability to move around the city more easily. Other performance measures could include vehicle miles traveled (VMT) per capita, availability of transit options, bicycle facilities and network completeness and other factors. 4) Diversified and Sustainable Economy This category monitors the fiscal health of the city to ensure revenues that support a continued high level of services and quality of life. It also addresses the economic health of the city's commercial districts for both commercial and cultural/arts activities. Indicators may include municipal revenue sources, cost of services, the ratio of jobs to housing city-wide, and number of locally-owned businesses. 8 5) Public Engagement Process This category measures success in engaging stakeholders in civic life and community process, allowing for meaningful input, sharing of information, and a clear understanding of why decisions are made. Measurements could include the number of public meetings as well as participation and representation at community meetings and workshops. It is anticipated that key trends can be conveyed in a 3 to 5 year report card, however, indicators to measure transportation choice could be more frequent. The report card can provide an overview of the plan's progress that City Council and Planning Commission can review to determine if any new or revised strategies are needed. Given the range of indicators and number of topics, a review can be done with consideration of multiple factors and a balancing between them. Environmental Review The Notice of Preparation Scoping is complete and a community meeting was held on May 18, 2009. The final draft of the proposed LUCE, revised to incorporate Council. direction, is the project subjected to environmental review under CEQA. The City will also comply with Section 66474.2(b) of the Subdivision Map Act so that subdivision applications received and determined complete after that "initiation" date can be subject to the LUCE if the LUCE is adopted and in effect on the date the subdivision application is finally acted upon. 9 Financial Impacts & Budget Actions There is no immediate financial impact associated with information presented in this staff report. Prepared by: Francie Stefan, Community and Strategic Planning Manager Approved: Forwarded to Council: Eileen Fogarty ~ '/P. L,~~nt Ewell Director, Pli~ining nd munity Cit anager Development 10