Staff Report - September 18, 2001 - Agenda Item

PROPERTY DIMENSIONS: The property consists of one (1) block of South San Fernando Boulevard totaling 1.10 acres (47,730 square feet). The property has approximately 329 feet of frontage along San Fernando Boulevard and a depth of 145 feet.

The property consists of three (3) separate parcels. The largest parcel (39,775 square feet) contains the majority of the project site which was purchased by the Burbank Redevelopment Agency, except for that portion fronting along Cedar Avenue. The smaller parcels, approximately 5,800 square feet and 2,155 square feet, are owned by the Redevelopment Agency and a private party respectively. The Agency is in the process of acquiring the third remaining parcel (2,155 square feet).

STREET CLASSIFICATIONS: San Fernando Boulevard is designated as a Major Arterial with a right-of-way of eighty (80) feet (66 feet paved with 7 foot parkways). Elmwood Avenue and Cedar Avenue are local streets with sixty (60) foot right-of-ways (46 feet paved with 7 foot parkways). The alley to the rear of the property is presently seventeen and a half (17.5) feet wide along the southern portion of the project and fifteen (15) feet wide on the northern portion. The applicant is required to dedicate an additional two and half (2.5) feet at the rear of the property for alley purposes.

CURRENT AND PAST DEVELOPMENT OF THE SITE: The largest parcel on the site has been cleared since it was acquired by the Redevelopment Agency in 1995. Prior to that time, the site was utilized primarily for automobile sales uses. The second parcel owned by the Agency is presently developed with an auto sales use. The second floor of that building has, in the past, been rented to separate tenants, including as an illegal residential unit. Currently the second floor is leased by a paving contractor and a traveling band. The third property is used primarily as a contractor�s storage yard.

PROJECT DESCRIPTION: The applicant is requesting approval of an application for a Planned Development and Development Review in order to construct thirty-three (33) for-sale residential units on the subject property (Exhibit C). The units are proposed to be constructed in six (6) separate buildings, with five (5) or six (6) units per building. Ten (10) of the proposed units will be designated for moderate-income buyers and are scattered throughout the project.

The project proposes two (2) unit plans, each containing two (2) bedrooms and two (2) bathrooms. Plan I, with a floor area of 1,242 square feet, will be used for the twelve (12) end units and Plan II, with a floor area of 1,370 square feet, will be used for the balance of the project. All units are proposed to be three (3) stories in height with a two (2) car garage on the ground floor. The project also includes nine (9) surface guest parking spaces that can be accessed from the alley at the rear of the project, for a total of seventy-five (75) parking spaces.

In addition to the Planned Development and Development Review applications, the subject request includes Tentative Tract Map No. 60875, that would subdivide the units for condominium purposes and a Development Agreement, which is a contractual agreement between the City and the Olson Company regarding the development of the proposed project.

MUNICIPAL CODE CONFORMANCE: The current zoning for the property permits the approval of a residential only project on the site subject to approval of a Conditional Use Permit. According to Section 31-2528 of the Burbank Municipal Code, residential only development is permitted on the east side of San Fernando Boulevard between Verdugo Avenue and Alameda Avenue provided that the project site is more than 300 feet from any intersections of two (2) arterial roadways. The intersection of arterials that is nearest to the project site is the intersection of Alameda Avenue and San Fernando Boulevard, which is approximately 800 feet from the project site. The code further states that any residential-only development shall comply with R-4 development standards, including setbacks and landscaping of setbacks.

Pursuant to Section 31-19119 of the Burbank Municipal Code, the Planned Development process is an alternate process to accommodate unique developments which would a create desirable, functional and community environment under controlled conditions of a development plan. While a residential-only development can be permitted through the Conditional Use Permit process, a Conditional Use Permit process is not possible in this particular case because the subject property is owned by two (2) parties (the Redevelopment Agency and Owens), neither of whom is the applicant, as only a property owner can apply for a Conditional Use Permit. A Planned Development, on the other hand, can be applied for by any party and any approval would be subject to the applicant owning the land. Furthermore, due to the nature and location of the site and architectural considerations as well as the affordable housing provisions of the project, the applicant has requested to modify the development standards for this project from the R-4 development standards.

While the application requested is to create a new zone with its own development standards, it is helpful to compare the project to what would traditionally be required in the BCC-3 and R-4 zones. The following table describes a particular development standard and compares the project to the code requirements if this were not a Planned Development zone.

Development standard	Code requirement	Proposed project
Land Use	Conditional Use Permit required	Planned Development includes all other required entitlements
Density	1 unit per 750 square feet (63 units)	1 unit per 1446 square feet (33 units)
Height	BCC-3 Standard � 70 feet without a Conditional Use Permit (164 feet via CUP and 205 feet via Planned Development) R-4 Standard - 35 feet from average grade to the ceiling of the highest room permitted for human occupancy. Roof and architectural features may exceed maximum height	35 feet to the ceiling of the highest room permitted for human occupancy.
Setbacks (downtown special area)	BCC-3 Standard � 5 feet or 20 percent of building height (7 feet), whichever is greater, for front and exposed street side setbacks. R-4 Standard � 15 foot front, 10 foot street side, and 5 foot rear	7 feet along San Fernando, 5 feet along Elmwood and Cedar, 8.5 feet from alley (after dedication)
Garage Setback	If a garage structure exceeds 5 feet above natural grade, it must be located a minimum of 15 feet behind the front setback.	On-grade garages built to building setback along San Fernando and approximately 10 feet behind the setback along Elmwood and Cedar. Garages face interior of project.
Lot coverage	70%	46%
Parking spaces	2 per condo unit plus .2 per unit for guests Total of 73 required	66 parking spaces for units (one 2 car garage per unit) and 9 guest spaces. Total of 75 spaces
Parking dimensions	8�6� x 18� residential, 7�5� x 15� compact allowed for 45% of spaces (after first 5)	9� x 18� stalls for all spaces
Open space exposure	8� window looking onto 20� of open space or public street from primary living area	Provided for all units
Common open space	150 s.f. per unit (4,950 s.f. total), minimum dimension of 27x30� (80% open to sky) 15% landscaped, one tree per 600sf	151.5 s.f. per unit provided in courtyards, 100% open to sky 15% landscaping to be provided, 12 trees proposed in common open space area Courtyard dimensions � 131� x 21.5�
Private open space	50 s.f. per unit, minimum depth of 5� � 42� opaque wall on ground floor	Each unit is provided with a 80 s.f. deck (5� x 18�)
Landscaping	15% of total lot area landscaped, one tree per 40� frontage one of which must be a 48� box and the remainder must be 24� boxes � 8 on San Fernando, 4 on Elmwood, 4 on Cedar	Approximately 18% of site will be landscaped. Two 48� box trees provided on San Fernando frontage, 24� box trees along the balance of the frontage (see conceptual landscape plan)
Amenities	2 of: spa, gazebo, BBQ, play/recreation equipment, tables, chairs or benches 1 of: pool, shuffleboard, badminton, volleyball, miniature golf or exercise room	Specific amenities are not shown on current plans. Applicant has indicated that no items from the second list are proposed to be included.
Fa�ade requirements (downtown special area)	Visual variation, front elevation may be built to front yard setback if balconies are provided for each unit on that elevation, do not exceed 36� without at lest 3x4� break (can use balconies), other requirements such as up to 10% of first floor area may have tower element 25% of upper floor elevation must have additional 5� setback	Visual variation provided through breaks, balconies, architectural treatments, and materials. Does not have upper story setback
Fence Height	No more than 3 feet in the front or exposed street side setback	Project includes a 6 foot wall that extends into the setback along San Fernando
Art in public places	1% of total project cost	Will be provided, subject to committee approval

STATE AFFORDABLE HOUSING LAW: Pursuant to Section 65915(a) of the California Government Code, a local government shall provide an applicant with incentive or concessions for the production of affordable housing units. Reductions in site development standards, zoning code requirements, and architectural design criteria that exceed the minimum building code requirements are identified as possible concessions that a local government could provide.

PUBLIC CORRESPONDENCE: Prior to the public hearing before the Planning Board, the Planning Division received three (3) phone calls and one (1) counter visit from residents interested in the project. All four (4) people wanted information on how to get on a waiting list for the project. Three (3) people spoke at the Planning Board hearing expressing concerns about relocation issues and the purchase of the remaining private parcel. No comments have been received since that time. Any additional comments received prior to the joint public hearing will be forwarded to the City Council and Redevelopment Agency Board.

LAND USE ANALYSIS

Planned Developments involve the establishment of new zones with established uses and development standards that are tailored to the particular development. The Planned Development process is intended to result in projects that would be harmonious with the surrounding community under the controlled conditions of a development plan.

SURROUNDING NEIGHBORHOOD: The surrounding neighborhood includes a variety of different uses. The properties on the east side of San Fernando are used for a variety of commercial uses including a number of automobile sales businesses. Additionally, the United Cerebral Palsy project, an eighteen (18) unit residential project targeted for people with disabilities, was approved on the vacant property one (1) block north of the subject property.

The properties on the west side of San Fernando are developed with a variety of commercial, office, light industrial, and media uses. The Robert R. Ovrom Park, a joint use park and community day school, is planned on the west side of San Fernando between Cedar and Providencia Avenues.

The properties across the alley from the project are developed with multifamily residential uses.

SOUTH SAN FERNANDO STREETSCAPE PROJECT: One of the policies of the Burbank Center Plan for the San Fernando Corridor was the promotion of an inviting pedestrian environment with a streetscape plan that includes landscape elements and street furniture. As such, the Redevelopment Agency is currently working on the development of the South San Fernando Streetscape Project. The project, as currently envisioned, would cover the corridor between Alameda Avenue and Verdugo Avenue. Among the improvements envisioned by the plan are landscaped medians, parkway improvements (including landscaping), and pedestrian-oriented lighting. The streetscape improvements are tentatively scheduled to begin construction in January 2005.

PROJECT CHARACTERISTICS: The proposed project involves the construction of thirty-three (33) attached condominiums, ten (10) of which have been designated for moderate income buyers. As part of the Planned Development process, the applicant has requested modifications from some of the standards typically applied to these projects in the interest of increased flexibility in design and resulting site constraints.

ARCHITECTURE/URBAN DESIGN FEATURES: The six (6) buildings proposed on the site are based upon a Spanish style architecture. Half of the buildings are to be constructed more in keeping with a mission style, incorporating features such a curved openings to porches and balconies. The other buildings are designed in more of a Spanish Colonial or Mediterranean style architecture, with fewer curved elements and design elements such as faux shutters.

The project as proposed does not comply with the Burbank Municipal Code standard which requires an additional five (5) foot setback for twenty-five (25) percent of the upper stories of a multifamily project on the Elmwood and Cedar facades. However, the intent of the requirement is achieved through several design elements. First, the covered balconies located on the second floor of each unit project from the building fa�ade, creating the impression of an increased setback on the third story. This impression is amplified by the use of a pitched roof above the balconies that provide additional visual break to the massing of the third story.

The project design contains a number of design elements that are consistent with the New Urbanism concept of urban design. New Urbanism is a movement in urban design that is geared towards enhancing urban living through design concepts that, among others, encourage pedestrian circulation, provide affordable housing options, and preserve and promote community character. The design principles associated with New Urbanism include reducing setbacks from streets, building heights of at least two (2) stories, parking and vehicular access oriented to the rear of buildings, buildings that are oriented to the street, pedestrian oriented facades, front porches, and availability of parks and schools within walking distance.

While the project is not necessarily intended to be a model of the principles of New Urbanism, it includes design elements that are geared towards the objectives of New Urbanism. The project is proposed to have reduced setbacks from the street and pedestrian entrances along the street. These elements are intended to enhance the pedestrian character of the project. Likewise, units include front porches and other design elements that are consistent with the principles of New Urbanism.

SETBACKS: The Burbank Municipal Code requires that residential-only projects in the BCC-3 zone comply with the development standards of the R-4 zone. The development standards that are proposed as part of this application include modifications from the R-4 development standards. The setbacks proposed for the project are seven (7) feet on the San Fernando frontage and five (5) feet on the Elmwood and Cedar frontages in lieu of fifteen (15) feet and ten (10) feet respectively.

There are a number of reasons for setback requirements. Front and street setbacks provide open space and decrease the impact of building massing on the streetscape. They also provide a buffer between structures and public streets and green space for residents. Furthermore, consistent setbacks can create a more orderly pattern of development.

As noted above, reduced setbacks are a fundamental principle of the New Urbanism and pedestrian oriented development. Proponents of these concepts argue that overly large setbacks are inconvenient and unpleasant for pedestrians. The reduced setbacks, along with other features of the development, contribute to more of a pedestrian oriented design. The setbacks proposed are consistent with those required of a commercial development in the area. Additionally, the enhanced landscaping proposed under the South San Fernando Streetscape Project will act as an aesthetic buffer between the project and the street.

The impact of the proposed setbacks on the existing streetscape is minimal as they are similar to the required setbacks for commercial properties in the area. The Elmwood and Cedar setbacks are less than typical residential setbacks on those streets. However, the setback proposed from the rear property line and the alley, which separates the project site from adjacent residential properties, will provide a natural area of transition between the proposed setbacks and the typical R-4 setbacks.

PARKING: The proposed project involves the construction of thirty-three (33) residential units. Based upon Municipal Code standards, this project would require seventy-three (73) parking spaces, sixty-six (66) for the units and seven (7) guest parking spaces. The proposal includes seventy-five (75) parking spaces. Each unit is provided with an attached two-car garage (66 total spaces). An additional nine (9) guest spaces are provided along the alley.

The Burbank Municipal Code prohibits a garage structure that exceeds five (5) feet above the average elevation of the property to be located an additional fifteen (15) feet behind the front setback. This code section is a mechanism to prohibit tuck-under parking in the front of a property as well as reducing the aesthetic impacts of large garage structures located at the front of the property.

This proposal would include at grade garage structures that are not set back an additional fifteen (15) feet. However, each unit facing a public street also includes habitable space on the first floor level. Thus, the design is more comparable to a single family home with an attached garage than a tuck-under situation. Furthermore, the proposal includes window treatments and other architectural elements on the first floor of facades that soften the impact of the garage structures.

As noted above, each unit will be provided with a two (2) car garage that is attached to the individual unit. These garages are accessed through three (3) driveways that run from the alley. Each driveway serves two (2) buildings. The proposed driveway widths meet City standards with regard to back-up distances. Additionally, the front units are provided with an additional turning area to improve turning movements and facilitate forward ingress and egress.

The guest parking areas are located along the alley. These spaces are not secured and will be available to guests of the site. Guests will be able to access the individual units by internal pedestrian paths.

OPEN SPACE: All multifamily residential projects are required to provide adequate open space areas for each unit in the form of both common and private open space. The proposal exceeds the minimum area requirements for common open space and private open space. However, the open space does not meet the minimum dimensions required for common open space areas. The Burbank Municipal Code requires that common open space areas for projects with more than sixteen (16) units have minimum dimensions of twenty-seven (27) feet by thirty (30) feet. The two (2) common open space areas provided for this project have dimensions of approximately 21.5 feet by 131 feet. These dimensions are the result of the site layout proposed for the project.

AMENITIES: The Municipal Code requires amenities to be provided for multifamily residential projects. For a project with thirty-three (33) units, the applicant is to provide two (2) smaller amenities (conversation areas, benches, play equipment) and one (1) large amenity (pool, shuffleboard, exercise room). The applicant will be complying with the requirement regarding smaller amenities. However, the reduced width of the common open space areas makes it infeasible to provide any of the larger amenities as part of the project. Nevertheless, the proposed Robert R. Ovrom Park which is planned to be constructed on the west side of San Fernando between Cedar and Providencia will be within easy walking distance and will provide additional passive and active recreation amenities to residents.

LANDSCAPING: While the setbacks proposed for the project are less than would typically be required for an R-4 development, the applicant has proposed substantial landscaping along the street frontages to soften the massing of the buildings and provide an aesthetic buffer between the project and the streets. This will be further enhanced by the South San Fernando Streetscape project. The project landscaping will be required to be complimentary to the proposed streetscape improvements to insure that the project is integrated with its surroundings.

Due to the reduced setbacks, it is not preferable to install the required forty-eight (48) inch box trees in the setback area. However, the applicant has proposed to install two (2) such trees on the site, one (1) in each of the courtyards. While they will not be located in the setback, these trees will be visible from the street.

The San Fernando frontage will include nine (9) trees, four (4) thirty-six (36) inch boxes and five (5) twenty-four (24) inch boxes. The Cedar and Elmwood frontages will each be improved with five (5) twenty-four (24) inch boxes. While the final species have not been determined for these trees, they will be required to be complimentary to the street trees that will be installed with the streetscape plan.

The project complies with all other multifamily landscaping standards. This includes the requirement that fifteen (15) percent of the project site shall be covered in landscaping and the numbers of trees required. Additionally, the common open space areas are proposed to have more trees than typically required and the drive aisles will be improved with fifteen (15) gallon trees to soften those elevations.

FENCE HEIGHT: The Burbank Municipal Code limits the height of a fence within a front or street side setback area to a maximum height of three (3) feet above grade. The project proposal includes the construction of a six (6) foot wall along the San Fernando frontage that extends beyond the building setback at each of the drive aisles. This encroachment is necessary to accommodate the additional drive aisle area to facilitate turning movements out of the end garages.

In general the wall will be complimentary to the architectural style of the project. The portion of the wall that encroaches into the setback will be a three (3) foot block wall with three (3) foot wrought iron above it to minimize the impact of massing. Likewise, the applicant has proposed pedestrian entrances through the gates into the common courtyards to encourage pedestrian activity. Additionally, landscaping has been proposed in front of the walls to soften their massing.

TRAFFIC/CIRCULATION: Vehicular access to the project is proposed from the alley to the rear. The alley is presently substandard in width for the entire length of the project site. The applicant is required to provide a two and a half (2.5) foot dedication at the rear of the property for alley purposes. With this dedication, the southern portion of the alley will meet the City�s standard with regard to width.

Power lines currently run from south to north along the existing property line between the project site and the alley. Although the applicant is required to dedicate property for alley purposes, the existing power poles will not be relocated as part of this project. While this is less than ideal, the Public Works Department Traffic Engineering Division has determined that the situation remains functional, particularly given that the project will provide additional alley width. Traffic Engineering does not generally require the relocation of these facilities for alleys with less than 700 daily trips. Traffic counts taken on May 24, 2004, indicate that the alley currently experiences 325 trips per day with a peak hour of thirty-one (31) trips between 2:00 and 3:00 p.m. Even if all of 193 anticipated trips for the proposed project were to utilize the alley, the alley would remain below the threshold required for utility relocation.

Three (3) drive aisles provide access to the individual unit garages. These drive aisles have a width that is adequate to accommodate two (2) cars. Because of the difficulties associated with relocating the existing power poles, the center drive aisle is curved at its intersection with the alley. As such, access to this drive aisle will be limited to northbound traffic and exiting will be restricted to right turn only.

NOISE: Like any construction activity, the construction phase of this project will create an increase in the ambient noise level in the vicinity. As such, construction hours will be required to comply with the standards of the Noise Ordinance, which limits construction activities to between the hours of 7:00 a.m. and 7:00 p.m., Monday through Friday, and 8:00 a.m. to 5:00 p.m. on Saturday.

San Fernando Boulevard is a major arterial. As such, the noise from automobile traffic is higher for this property than it would be in a typical residential neighborhood. Since the project site is located within a noise-impacted area, State law requires that an acoustical study be submitted prior to issuance of a building permits. The study is intended to demonstrate how the project will be designed to insure that interior noise levels meet acceptable levels for residences.

DEPARTMENT COMMENTS: The subject application and plans were routed to City departments and divisions for review and comment. All code related comments from the departments and divisions have been included in the partial list of code requirements (Exhibit D).

ENVIRONMENTAL REVIEW: Pursuant to the California Environmental Quality Act (CEQA), a Negative Declaration has been prepared for the project, which indicates that the project will not have a significant impact on the environment (Exhibit E).

PLANNED DEVELOPMENT FINDINGS: Section 31-19127(h)(3) of the Burbank Municipal Code states that prior to approval of a Planned Development, the Planned Development must be found consistent with the General Plan and all applicable community plans and that the design criteria identified in Section 31-19124 of the Burbank Municipal Code have been satisfied.

GENERAL PLAN AND COMMUNITY PLAN CONSISTENCY: The proposed Planned Development is located within the Burbank Center Plan area. As such, it must be consistent with the Burbank Center Plan as well as the General Plan.

Consistency with the General Plan- The Land Use Element of the General Plan identifies the Planned Development process as a means to facilitate and encourage unique development provided that development is consistent with the General Plan. The General Plan designation for the subject property is Mixed Commercial/Office/Residential. This designation is intended to provide for a variety of mixed commercial and medium density residential uses ranging from retail and service shops serving an immediate area, to regional retail/entertainment and offices serving regional employment needs. The land use permits the establishment of residential-only projects on sites that are greater than 300 feet from an intersection of two (2) arterials. Residential-only development is encouraged in areas where existing strip commercial has lost its economic vitality.

The City has established several policies relating to development of the Mixed Commercial/Office/Residential land use. These policies include the maintenance and enhancement of the pedestrian circulation system, encouragement of architecture, which promotes a pedestrian environment, and the creation of a visual identity through the use of public space and special design considerations.

The proposal is consistent with the uses and policies established for the Mixed Commercial/Office/Residential land use designation. The site is an appropriate location for a residential-only project and incorporates design features that are geared toward enhancing the pedestrian environment.

Consistency with the Burbank Center Plan- The project site is located within the South San Fernando subarea of the Burbank Center Plan. Specifically, the project is located along the San Fernando Corridor, an area in which residential-only projects have been identified as an appropriate land use. The land use policies established for this area include the promotion of an inviting pedestrian environment. The proposed land use and design are consistent with these principles.

DESIGN REVIEW CRITERIA: Section 31-19124 of the Burbank Municipal Code establishes nine (9) design review criteria for Planned Development applications.

The design of the overall planned development shall be comprehensive and shall embrace land, buildings, landscaping and their interrelationships and shall be substantially consistent with the General Plan and any applicable Element of the General Plan.

The project design includes a number of elements, such as balconies and front porches, which are intended to provide connection between the project and its surroundings and integrate the project into its neighborhood. Likewise, the project�s design utilizes the natural change in grade on the site to create additional architectural variation. While the project requires reduced setbacks, the applicant has proposed to utilize significant landscaping to soften the setbacks and enhance the appearance of the project from public streets.

The planned development shall provide for adequate permanent open areas, circulation, off-street parking, and pertinent pedestrian amenities. Building structures and facilities and accessory uses within the planned development shall be well integrated with each other and to the surrounding topographic and natural features of the area.

The project meets the City�s standards for both open space and parking for multifamily projects. The design of the project is intended to create a pedestrian friendly environment. Each unit includes a front entry porch. The porches for those units that face a street are oriented towards the street. The project site has a slight grade change that the architecture uses to increase architectural variation and improve the appearance of the project.

The planned development shall be compatible with existing and planned land use on adjoining properties.

The proposed thirty-three (33) unit residential project is consistent with the permitted density and uses in the area. Furthermore it will benefit from future uses in the area such as Robert R. Ovrom Park. The construction of residential uses along San Fernando is consistent with the zoning and land use designations for the area. Two (2) other residential projects have been approved on the east side of San Fernando in the last few years.

Any private street system or circulation system shall be designed for efficient and safe flow of vehicles, pedestrians, bicycles, and the handicapped, without creating a disruptive influence on the activity and functions of any area or facility.

The internal vehicular circulation for the project is designed so as not to be in conflict with open space or pedestrian areas. Each unit is internally connected to a two (2) car garage, eliminating the need for walking through parking areas to gain access to individual units.

The public street system within or adjacent to a planned development shall be designed for the efficient and safe flow of vehicles (including transit vehicles), pedestrians, bicycles, and the handicapped. Public streets shall be designed using standard City lane widths, capacities, and travel speeds. The design shall also include adequate space and improvements for transit vehicles and facilities for bicycle and pedestrian circulation. City standard entrance control requirements shall be maintained. Design of major streets shall also provide sidewalks, adequate street lighting, and concrete median islands on arterial streets.

There is no public street system proposed as part of the project. The design of the Planned Development will not impact existing traffic flow. The proposed entrances to the project are from the alley, minimizing the impact on traffic flow from ingress and egress.

Common area and recreational facilities shall be located so as to be readily accessible to the occupants of residential uses.

The common open space for the project is located in two (2) separate courtyards in the center of the project and can be readily accessed by individual units.

Compatibility of architectural design and appearance including signing throughout the planned development shall be sought. In addition, architectural harmony with surrounding neighborhoods shall be achieved so far as practicable.

The six (6) buildings proposed for the project are to be constructed using two (2) compatible architectural designs. Both designs are Spanish-inspired, one with a mission style and the other with a Spanish Colonial style. While this design is unique for the surrounding area, it is an improvement over the existing, outdated structures. Additionally, varied architecture along the �-mile corridor will provide a diverse pedestrian experience that will be tied together by the common theme created by the South San Fernando Boulevard streetscape elements.

Where applicable, an adequate variety of uses and facilities shall be provided in order to meet the needs of the planned development and adjacent neighborhoods.

Only one (1) use is proposed as part of this project. As such this design standard is not applicable. The surrounding neighborhood is currently in transition. However, there are already a variety of commercial uses, such as groceries, in the area that meet the needs of the neighborhood. This will be further enhanced by the proposed construction of a neighborhood park.

The planned development and each building intended for occupancy shall be designed, placed, and oriented in manner conducive to the conservation of energy.

The developer will be required to comply with all applicable City requirements intended for energy reduction.

TENTATIVE TRACT MAP FINDINGS: Section 66474 of the Subdivision Map Act establishes the six (6) findings that an agency is required to make prior to approval of a Tentative Map.

The map is consistent with the General Plan and applicable specific plans.

The development of condominium project is consistent with the General Plan. The proposed density of development is within the limitations established by the General Plan for the Mixed Commercial/Office/Residential land use. The subdivision is consistent with the objectives of the Burbank Center Plan.

The design and improvement of the proposed subdivision is consistent with the General Plan and applicable specific plans.

The proposed multifamily project is consistent with the General Plan and the Burbank Center Plan. The project design is in keeping with the goals, policies, and objectives of both documents as well as the specific land use designations established for the subject property.

The site is physically suitable for the type and proposed density of development.

The project involves the construction of thirty-three (33) condominium units on approximately 1.1 acres of land. The proposed density is substantially below the maximum density established for this property of one (1) unit for 750 square feet of lot area, which would allow a maximum of sixty-three (63) units on the site. The property is adequate in size to accommodate the proposed use.

The design of the subdivision is not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitats.

The project is located in an urbanized area. No fish or wildlife are present on the site.

The design of the subdivision and the type of improvements are not likely to cause serious public health problems.

The subdivision is consistent with City regulations. The development of a residential use will not involve the creation or use of materials that could result in serious public health problems.

The design of the subdivision and the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision.

There are no existing easements on the property. However, the proposed subdivision will include a two and a half (2.5) foot dedication at the rear of the project for the improvement of the existing public alley.

LAND USE CONCLUSIONS: The purpose of the Planned Development process is to provide an alternate process to accommodate unique developments for residential, commercial, professional, or other similar activities, including modified development standards which would create a desirable, functional and community environment under controlled conditions of a development plan. The proposed multifamily residential project meets the requirements of this process.

PLANNING BOARD RECOMMENDATION: The Planning Board considered the subject request at its regular meeting of May 10, 2004. The staff recommendation was to recommend the project for approval. The Planning Board heard public testimony raising concerns regarding the purchase of the remaining private property and relocation of existing tenants. A concern was also raised regarding the project�s impact on traffic along the alley.

Following deliberations that focused on site circulation and the design of the project, particularly the proposed setbacks and architecture, the Board added two conditions of approval. The first condition of approval would require that any change to the project architecture that was not in substantial conformance with the rendering submitted to the Planning Board be reviewed and approved by the Board. The second condition of approval would require the power lines along the alley to be removed to facilitate improved vehicle access.

The Board voted 5-0 to recommend approval of the project (Resolution attached as Exhibit F; Minutes for July 22, 2002 attached as Exhibit G).

Undergrounding/Relocating Power Lines

As discussed earlier, utility lines run along the alley to the rear of the project. There are three (3) poles in the alley which create pinch points for traffic using the alley. In addition to Burbank Water and Power, SBC and Charter Communications utilize the poles for services. As such, any undergrounding or relocation would involve these utilities. As part of the project review, staff investigated the possibility of undergrounding or relocating the power lines in order to improve the circulation and aesthetics of the project.

Utility Undergrounding

In 2002, a meeting was conducted with representatives from Redevelopment, Burbank Water and Power, SBC, Charter Communications and the Southern California Gas Company regarding the feasibility of establishing an underground utility district in conjunction with the proposed South San Fernando Boulevard Streetscape project (between Verdugo Avenue and Alameda Avenue). However, because of the anticipated costs ($1 million estimated for electrical conduit alone) and the timing involved to establish the district, it was determined that an underground utility district would not be feasible at this time. Undergrounding utilities at the former Lance site was also discussed at this meeting. Burbank Water and Power determined that undergrounding utilities would not be a requirement for the proposed residential project at this site. However, they estimated that it would cost between $110,000 and $120,000 to underground their lines along the alley, in the event that the area dynamics changed in the future. SBC and Charter Communications were unable to provide an estimate at this meeting. Since that time, the costs of labor and materials have increased by at least ten (10) percent and the Burbank Water and Power estimate could range between $121,100 and $132,000. In May 2004, SBC estimated that the cost of undergrounding their lines would be in the neighborhood of $100,000. Charter Communications estimates that it would cost $57,000 to underground their cable services. Total costs for undergrounding utilities behind this site are estimated at $289,000. The work is projected to take 90 to 120 days to complete.

Additionally, there are technical issues with placing these lines underground. Specifically, the center pole guys a line that runs along the alley running parallel to Elmwood and Cedar Avenues. In order for the center pole to be removed, new guying would be required for this line which could potentially interfere with garage access to properties at the end of the alley.

Utility Relocation

Based upon discussions with Burbank Water and Power, relocating the poles to the edge of the alley (as opposed to undergrounding) also creates technical issues. First, the relocation could result in the buildings encroaching into the clearances required by State law for power lines, necessitating the redesign of the project. Additionally, relocation would necessitate the establishment of a new service drop for 214 East Cedar. Relocation of the middle pole in either direction to improve ingress and egress to the center drive aisle creates complications because it guys the line from the other alley potentially resulting in an encroachment onto private property. In addition, the Olson Company staff indicated that relocating the power poles would result in the loss of about five residential units which would affect the project economics.

Based on the abovementioned issues related to utility undergrounding and relocation, including guying utility lines, related impacts on the surrounding neighborhood as well as increased project costs and construction delays, staff believes that these alternatives are not viable options for the proposed project. However, if feasible, staff may ultimately recommend the South San Fernando Boulevard corridor as a utility undergrouding district, allowing for a Master Plan for the entire corridor and not a �piece meal� or project-by-project approach.

Additionally, as part of ongoing dialogue regarding utility undergrounding options, staff from Burbank Water and Power is preparing a cost estimate (including potential funding options) to install conduit along a portion of the San Fernando Boulevard corridor (between Providencia Avenue and Elmwood Avenue) to accommodate future utility undergrounding needs for this project. If feasible (from a funding perspective), these improvements will be installed before the completion of the South San Fernando Streetscape project.

REDEVELOPMENT AGENCY ACTIVITIES

Since the proposed project requires the Agency to sell property to the Developer, a Disposition and Development Agreement has been negotiated. The purpose of the Disposition and Development Agreement is to document the real estate transaction and to outline the roles and responsibilities of both the Agency and the Developer. Salient provisions of the proposed Disposition and Development Agreement include the following:

DEVELOPER RESPONSIBILITIES

The Developer must acquire the site for $1,012,000;

The Developer will make a deposit of 5% of the purchase price, or $50,600, at the opening of escrow, which shall be non-refundable (unless the Agency defaults or both parties mutually agree to terminate the transaction);
The balance or $961,400 will be paid at the close of escrow on the site;
If cost savings and/or sales revenue increases are achieved by the project, the Developer will make a participation payment to the Agency equal to 50% of the net profit achieved above the threshold identified in the Agreement;
The Developer has the right to investigate the site�s soils and environmental conditions prior to accepting conveyance of the site. If remediation is required, the Developer is required to fund the first $50,000 in costs;
The Developer is required to submit evidence that sufficient equity capital and construction financing has been committed to fund 100% of the project costs;
The Developer must prepare the Declaration of Covenants, Conditions and Restrictions for the project to which the City and Agency must be named as third party beneficiaries. This document also includes the following requirements: occupancy standards for all units will allow two persons per bedroom, plus one additional person; all ongoing maintenance requirements, that meet the Agency�s defined standards, will be imposed; and the homeowners or homeowners� association cannot modify the Covenant, Conditions and Restrictions without the City�s and Agency�s approval;
The Developer will develop the site in accordance with the City�s Planned Development No. 2004-3;
The Developer will complete the project in a timely manner as described in the Schedule of Performance; and
The Developer will sell ten (10) of the 1,200 square foot two-bedroom units to households earning less than 120% of the Los Angeles County median income (that qualify under the moderate-income definition imposed by the California Health and Safety Code Section 50093);

In order to provide the residential affordability component, the Developer is responsible for creating and using an Agency-approved selection process for these units. The marketing efforts must be targeted primarily to Burbank residents and the homebuyer must occupy the unit as their primary residence. The sales price charged for the affordable units will comply with the requirements imposed by California Health and Safety Code Section 50052.5 and as required by affordability levels established by Los Angeles County (currently estimated at $179,000 per affordable unit). In addition, the units will be subject to income and affordability covenants that remain in place for 45 years. The Developer must place silent second trust deeds on the affordable units with the Agency as the beneficiary to the trust deed. The average second trust deed amount is estimated at $120,000 per unit.

AGENCY RESPONSIBILITIES

The Agency must convey the site to the Developer free of any buildings, structures and active utilities;
All tenants shall have been relocated from the site in accordance with federal, state and local laws;
The site must be conveyed free and clear of tenancies, occupancies and possessory rights of any third parties;
The Agency will assist with the acquisition of the remaining portion of the site (Owens parcel). If negotiations to acquire the Owens parcel are unsuccessful, the Agency will schedule a hearing on a Resolution of Necessity to consider using eminent domain (but will not be obligated to adopt a Resolution of Necessity). If the Agency does not adopt a Resolution of Necessity, and thereafter does not otherwise obtain possession of the privately owned parcels in a timely manner and transfer same to the Developer at the scheduled close of escrow for the entire site, the Developer can terminate the Disposition and Development Agreement and the Agency will be required to return the Developer�s deposit to the Developer; and
The Agency is conveying the site in an �as is� condition. However, if it is determined during escrow, that environmental remediation is required, the Developer will fund costs up to $50,000. If the costs exceed $50,000, the Agency will fund up to an additional $50,000 in costs. If potential remediation costs exceed a total of $100,000, the parties will meet and confer with the option to terminate the transaction. However, once escrow has closed, the Developer must indemnify the Agency and City from any hazardous materials claims related to the site.

In accordance with Section 33433 of the California Health and Safety Code (California Community Development Law) a Summary Report has been prepared by the Agency�s financial consultant, Keyser Marston Associates, and is included as Exhibit H of this report. The Summary or 33433 Report sets forth certain details of the proposed Disposition and Development Agreement between the Agency and the Developer including the cost of the Agreement to the Agency.

In addition, pursuant to the California Community Development Law, both the Disposition and Development Agreement and 33433 Report have been made available for public review immediately following the initial publication (June 12, 2004) of the public notice (Exhibit I).

FISCAL IMPACTS

This section of the report is organized into two primary components: 1) the cost of the proposed project to the Agency; and 2) the anticipated Agency revenue to be generated by the proposed project. In addition to preparing the 33433 Report, Keyser Marston Associates prepared a project reuse valuation analysis and the following summarizes these documents and the overall project economics (Exhibit J).

TOTAL AGENCY COSTS

By the time the former Lance site is ready to be conveyed to the Developer, the Agency will have spent approximately $2.05 million. The overall budget breakdown is as follows:

Property Acquisition $1,606,000

Demolition $ 193,000

Tenant Relocation $ 144,000

Escrow & Appraisal Fees $ 21,000

Environmental $ 90,000*

TOTAL $2,054,000

*NOTE: This includes $40,000 of past environmental expenses and $50,000 for possible environmental work if discovered after opening escrow with the Developer.

ANTICIPATED AGENCY REVENUE

In addition to the land sales proceeds of $1.01 million, the South San Fernando Redevelopment Project Fund will realize property tax increment revenue. Based on the overall project value, the Project area will collect tax increment revenue through 2043 (the last year in which the Agency can collect tax increment revenue) totaling about $3.4 million in nominal terms or $1.2 million in present value terms (using a 6% discount rate).

Nominal Present

Dollars Value

Land Sales Proceeds $1,012,000 $1,012,000

Property Tax Increment Revenue 3,441,000 1,220,000

Total Agency Revenue $4,453,000 $2,232,000

In nominal terms, the Agency revenues exceed the Agency costs by $2.4 million. When the costs and revenues are considered in present value terms, the Agency revenues are $178,000 greater than the Agency costs. The Agency will also potentially receive participation payments from the Developer and/or repayment of the silent second trust deeds placed on the affordable units.

PROJECT SCHEDULE

Assuming the proposed Lance site project is approved on June 29, 2004, the proposed project schedule is summarized below:

Submission of Schematic Drawings Completed

Opening of Escrow On or before July 31, 2004

Submission of Design Development On or before September 30, 2004

Drawings

Complete Site Assembly Within 180 days after approval of Agreement by the Agency (by December 31, 2004)

Satisfaction of Conditions Precedent No later than close of escrow (by December 31, 2004

Close Escrow On or before December 31, 2004

Commence Construction Within 30 days after the close of escrow (by January 31, 2005)

Complete Construction Within 18 months after the start of construction (by July 31, 2006)

CONCLUSION

The proposed project will redevelop an underutilized and blighted block into a 33-unit for-sale residential development while creating a pedestrian friendly environment along the San Fernando Boulevard corridor. It will also enhance the economic viability of the area and provide support for existing businesses in the downtown. The proposed land use and project design are consistent with the principles of the Burbank Center Plan. Furthermore, the proposed project supports the goals of the South San Fernando Redevelopment Plan as well as provides additional residential units to the City�s affordable housing inventory.

RECOMMENDATION

Staff recommends that the Redevelopment Agency Board and the City Council adopt the proposed Ordinance and Resolution(s) approving the land use entitlements and sale of Agency property for the proposed Lance site project as described within this report.

Lancesiteagencycounciljointhrg62904

Exhibit C Land Use Applications, Tract Map, Site Plan, Elevations, Conceptual Landscape Plan

(Building Division, Fire Department, Burbank Water & Power, Police Department, Parks, Recreation &

Community Services, Department, Redevelopment Agency Staff, Public Works Department)

BURBANK REDEVELOPMENT AGENCY

Tuesday, June 29, 2004