City of Huntington Beach - File #: 24-478

• File #: 24-478
• Type: Public Hearing
• Status: Agenda Ready
• File created: 6/25/2024
• In control: Planning Commission
• On agenda: 9/10/2024
• Title: CONDITIONAL USE PERMIT NO. 23-007 (MIDWAY CONCEPTS MIXED USE PROJECT) REQUEST: CUP: To permit the construction of a four-story mixed-use project consisting of ground floor podium parking and 1,000 sq. ft. of commercial space, and 15 residential units on the 2nd, 3rd, and 4th floors in the Neighborhood Boulevard Segment of the Beach and Edinger Corridors Specific Plan (SP14), with reduced front yard setbacks along the Beach Blvd. and Speer Drive frontages. LOCATION: 7942 Speer Drive, 92647 (Southwest corner of Beach Boulevard at Speer Drive)

Date	Action By	Action	Result
9/10/2024	Planning Commission

PLANNING COMMISSION STAFF REPORT

TO:                     Planning Commission

FROM:                     Jennifer Villasenor, Community Development Director

BY:                     Hayden Beckman, Senior Planner

SUBJECT:

title

CONDITIONAL USE PERMIT NO. 23-007 (MIDWAY CONCEPTS MIXED USE PROJECT) 

REQUEST:

CUP: To permit the construction of a four-story mixed-use project consisting of ground floor podium parking and 1,000 sq. ft. of commercial space, and 15 residential units on the 2^nd, 3^rd, and 4^th floors in the Neighborhood Boulevard Segment of the Beach and Edinger Corridors Specific Plan (SP14), with reduced front yard setbacks along the Beach Blvd. and Speer Drive frontages.

LOCATION:

7942 Speer Drive, 92647 (Southwest corner of Beach Boulevard at Speer Drive)

body

APPLICANT:

Toby Nguyen, 16651 Gothard Street, Unit A-1, Huntington Beach CA 92647

PROPERTY

OWNER:

AA Investment LLC, 16293 Hemlock Street, Fountain Valley CA 92708

PROJECT PROPOSAL:

The applicant is proposing to construct a four-story mixed-use building on an approximately 0.52-acre undeveloped property that includes podium parking and 1,000 sq. ft. of ground floor commercial space, and 15 residential units on the 2^nd, 3^rd, and 4^th floors.

The request also includes reduced front yard setbacks (20 ft. and 19ft. ft. in lieu of minimum 30 ft.) on the Beach Blvd. and Speer Drive frontages (Attachment No. 3). 

RECOMMENDATION:

recommendation

That the Planning Commission take the following actions:

A)                     Find the proposed project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15182 of the CEQA Guidelines and Government Code 65457.

B)                     Approve Conditional Use Permit No. 23-007 with findings and conditions of approval (Attachment No. 1).

end

ALTERNATIVE ACTION(S):

A)                     Deny Conditional Use Permit No. 23-007 with findings for denial.

B)                     Continue Conditional Use Permit No. 23-007 and direct staff accordingly.

Background:

In 2010, the City adopted the Beach and Edinger Corridors Specific Plan (BECSP).  The goal of BECSP was to transform the current development of commercial strip centers lined with surface parking lots and generally low-rise commercial buildings to a pattern of centers and segments characterized with clusters of shops and activity of varying intensity. These new active areas would include a mix of residential, offices, and commercial uses oriented to alternative modes of transportation including walking and bicycling.

In 2015, the City Council amended BECSP to decrease the total number of residential units allowed from 4,500 to 2,100, increase setbacks, increase minimum parking standards, require upper story setbacks, require a commercial component in all residential buildings, and permit residential subject to approval of a CUP. Other amendments related to auto dealers and civic and cultural uses were also approved. Out of the 2,100 Maximum Amount of New Development (MAND) units currently permitted, 2,077 have been tallied (1,900 built; 177 in plan check) leaving a balance of 23 units within the specific plan area. The subject project proposes to construct 15 of the available 23 units under the existing MAND.

ISSUES AND ANALYSIS:

Subject Property And Surrounding General Plan Designations, Zoning And Land Uses:

VICINITY MAP
GENERAL PLAN	ZONING

LOCATION	GENERAL PLAN	ZONING	LAND USE
Subject Property:	M-sp (Mixed Use - Specific Plan Overlay)	SP14 (Beach Edinger Corridors Specific Plan - Neighborhood Boulevard Segment	Vacant
North of Subject Property (across Speer Drive):	M-sp	SP14	Commercial - Vehicle Sales (Honda)
East of Subject Property (across Beach Blvd.):	M-sp	SP14	City Navigation Center
South of Subject Property:	M-sp	SP14	Commercial - Retail & Restaurant
West of Subject Property:	RM (Residential Medium Density)	RM	Single Family Residential

General Plan Conformance:

The General Plan Land Use Map designation on the subject property is Mixed Use - Specific Plan Overlay.  The project is consistent with this designation and the goals and policies of the General Plan as follows:

A.                     Land Use Element

Goal LU-1 - New commercial, industrial, and residential development is coordinated to ensure that the land use pattern is consistent with the overall goals and needs of the community.

Policy LU-1A - Ensure that development is consistent with the land use designations presented in the Land Use Map, including density, intensity, and use standards applicable to each land use designation.

Policy LU-1C - Support infill development, consolidation of parcels, and adaptive reuse of existing buildings.

Policy LU-1D - Ensure that new development projects are of compatible proportion, scale and character to complement adjoining uses.

Policy LU-2E - Intensify the use and strengthen the role of public art, architecture, landscaping, site design, and development patterns to enhance the visual image of Huntington Beach.

Goal LU-4 - A range of housing types is available to meet the diverse economic, physical, and social needs of future and existing residents, while neighborhood character and residences are well maintained and protected.

Policy LU-4A - Encourage a mix of residential types to accommodate people with diverse housing needs.

Policy LU-4B - Improve options for people to live near work and public transit.

Policy LU-4E - Encourage housing options located in proximity to employment to reduce vehicle miles traveled. 

Goal LU-7 - Neighborhoods, corridors, and community subareas are well designed, and buildings, enhanced streets, and public spaces contribute to a strong sense of place.

The project will redevelop an infill site with a mixed-use development to address the diverse residential and commercial needs of the community.  It will be compatible with the character of the neighborhood which consists of a mix of medium density residential and commercial uses along the Beach Boulevard corridor. It will provide additional opportunities for housing near employment and public transit. The architectural design of the proposed 4-story project includes an upper story setback on all sides that will reduce the overall massing and bulk of the development, increasing compatibility with and enhancing the character of adjoining uses. It is consistent with the development standards in BECSP and Huntington Beach Zoning and Subdivision Ordinance (HBZSO) except for reduced parking, and a concession to special height limits adjacent to existing housing permitted under the California Density Bonus Law. 

B.                     Housing Element

Goal 2 - Provide adequate housing sites through appropriate land use, zoning and specific plan designations to accommodate Huntington Beach’s share of regional housing needs.

Policy 2.1. - Provide site opportunities for development of housing that responds to diverse community needs in terms of housing types, cost and location, emphasizing locations near services and transit that promote walkability.

Policy 2.3 - Encourage and facilitate the provision of housing affordable to lower income households within the Beach and Edinger Corridors Specific Plan.

Goal 3 - Enhance housing affordability so that modest income households can remain an integral part of the Huntington Beach community.

Policy 3.1 - Encourage the production of housing that meets all economic segments of the community, including lower, moderate, and upper income households, to maintain a balanced community.

Policy 3.2 - Utilize the City’s Inclusionary Housing Ordinance as a tool to integrate affordable units within market rate developments. Continue to prioritize the construction of affordable units on-site, with provision of units off-site or payment of an in-lieu housing fee as a less preferred alternative.

Policy 3.3 - Facilitate the development of affordable housing through regulatory incentives and concessions, and/or financial assistance, with funding priority to projects that include extremely low income units. Proactively seek out new models and approaches in the provision of affordable housing.

Policy 3.4 - Explore collaborative partnerships with non-profit organizations, developers, the business community and governmental agencies in the provision of affordable housing.

Policy 4.1 - Support the use of density bonuses and other incentives, such as fee deferrals/waivers and parking reductions, to offset or reduce the costs of developing affordable housing while ensuring that potential impacts are addressed.

Policy 6.4 - Incorporate transit and other transportation alternatives including walking and bicycling into the design of new development, particularly in areas within a half mile of designated transit stops.

The project will redevelop a vacant commercial property with a project that will provide additional residential opportunities in a mixed-use configuration along Beach Boulevard to address the diverse housing needs of the community. The project will comply with the City’s affordable housing requirement to provide 10 percent of the proposed dwelling units as affordable units. Due to the provision of affordable housing, the applicant is entitled to reduced parking and any concessions and waivers as permitted by the California Density Bonus Law. The project is located near transit, employment, and services which can facilitate alternative forms of transportation.

C.                     Circulation Element

Goal CIRC-3A - Convenient and efficient connections between regional transit and areas of employment, shopping, recreation, and housing will increase ridership and active mobility, with a focus on first/last mile solutions. 

Policy CIRC-6C - Require new commercial and residential projects to integrate with pedestrian and bicycle networks, and that necessary land area is provided for the infrastructure.

The project site is located near public transportation, employment, and shopping.  The project will be installing Palm Tree Boulevard frontage improvements including a 6 ft. wide sidewalk and 4 ft. planter along Beach Boulevard, and Neighborhood Streets frontage improvements including up to a 12 ft. wide sidewalk along Speer Drive, as required by BECSP. Combined with the bike racks that will be provided onsite, these improvements will facilitate active mobility and could increase transit ridership.

Zoning Compliance:

The subject mixed use project complies with the requirements of BECSP and Huntington Beach Zoning and Subdivision Ordinance (HBZSO), with two exceptions as described above.  Below is a zoning conformance matrix that compares the proposed project with the main development standards in BECSP.

Section	Development Standards	Code Provision	Proposed	Compliance
2.3.1	Max. building height	4 stories	4 stories	Yes
2.3.3	Max. building length	300 ft.	99.5 ft.	Yes
2.3.2	Special Building Height Limit - Adjacent to Housing	Max. 1 story above height of adjacent eave	3 stories above height of adjacent eave	*Concession
2.4.3-5	Min. setbacks	Front - 30 ft.  Side (Interior) - 10 ft. Rear - 15 ft.	20 ft. (Beach);  19 ft. (Speer) 10 ft. 44 ft.	Subject to CUP Subject to CUP Yes Yes
2.4.9	Build-to-Corner	Building sited within corner zone of intersecting setbacks	Building occupies corner zone	Yes
2.5.1	Improvements to existing streets	Palm Tree Blvd (Beach) Neighborhood Streets (Speer)	Palm Tree Blvd. Neighborhood Streets	Yes
2.6.3	Private Open Space	60 s.f./unit	60 to 100 s.f./unit	Yes

Land Use Compatibility

The project is compatible with the surrounding area which consists of a mix of commercial uses along Beach Boulevard and medium density residential behind those parcels fronting Beach. To the east across Beach Boulevard are commercial retail and office uses, as well as the City’s Navigation Center operational campus. Immediately north and south of the project site are other Beach Blvd. fronting properties within the Neighborhood Boulevard Segment of BECSP that contain commercial uses including retail, restaurants, and a motor vehicle dealership (Honda). To the west of the project site is a medium density residential neighborhood. Operational aspects of the project will be compatible with the character of the surrounding area and will not result in activities that would disrupt the adjacent community because the proposed residential uses would be typical of similar adjacent residential uses, and the commercial uses front Beach Boulevard, away from existing residential uses, and would be operational during daytime hours only.

As outlined above, the overall intensity of development approved within the BECSP is regulated by the applicable development standards including building height, setbacks, parking requirements, and the Maximum Amount of New Development (MAND), which was reduced from 4,500 to 2,100 units by the City Council in 2015. As such, the proposed project is consistent with the existing land use designation for the site and the applicable design guidelines of the BECSP, including building scale, length, and massing, as well as street frontage and street improvement regulations. Although the project would slightly alter the existing visual conditions of the site through introduction of new development on a previously disturbed yet currently undeveloped property, adherence to the development standards and design guidelines of the BECSP would ensure that the proposed development would not degrade the visual character or quality of the site or surrounding areas. The proposed project meets applicable height and MAND requirements in that of the 23 available residential units that can be approved under the existing MAND, this project will account for 15 of those new residential units and still comply with the maximum height of 4 stories, or 54 ft. maximum overall height (highest architectural projection). Proposed 4^th floor facades are predominantly setback 10 feet or more from the façade of the third and second floors below, and along the western property line, residential uses are buffered from the nearest building façade by a 44 ft. rear yard setback.

Site Layout

The proposed project will result in the development of 15 residential units spread throughout three stories above ground floor podium parking and 1,000 sq. ft. of commercial office space fronting Beach Boulevard. The project provides sufficient vehicular access via a single 24 ft. wide driveway off Speer Drive which connects open air rear yard parking spaces with two aisles of covered grade-level parking spaces located beneath the residential units of the above floors. One covered parking aisle provides parking for the residential units, the other aisle will be dedicated to the commercial tenants, and adequate vehicle maneuverability is provided throughout the site. No vehicular access to the site will be provided along Beach Boulevard. The development includes Palm Tree Boulevard frontage improvements along Beach Boulevard that incorporates a 6 ft. sidewalk and 4 ft. planted parkway along the curb, as well as new street lighting installations. There are currently no sidewalk improvements along the north property line fronting Speer Drive, and the project will result in Neighborhood Streets frontage improvements consisting of right-of-way dedication for new curb, gutter, sidewalk and landscaping that will facilitate access to the surrounding neighborhood as well as nearby retail, dining, services, employment opportunities, and public transit.

Conditional Use Permit

Mixed use projects in BECSP require a CUP from the Planning Commission and must include a retail/commercial component at the street level. The proposed project will develop an existing undeveloped property and provide new residential opportunities in the area. Project floor plans show two 500 sq. ft. commercial office spaces on the ground floor and a total of 15 residential units comprised of 6 residential units, ranging from 999 sq. ft. to 1,274 sq. ft. on the second floor; 6 residential units, ranging from 999 sq. ft. to 1,219 sq. ft. on the third floor; and 3 residential units, ranging from 1,028 sq. ft. to 1,441 sq. ft. on the fourth floor. There will not be any rooftop access of the project.

Additionally, within the Neighborhood Boulevard Segment of BECSP, the minimum front yard setback requirement of 30 ft. may be reduced to a minimum of 15 ft., subject to approval of a CUP. Since the subject property is a corner parcel, the site has two front yards as defined in BECSP; a front yard along Beach Boulevard and also a front yard along Speer Drive. The proposed project includes a request for reduced front yard setbacks: 20 ft. along Beach Blvd. and 19 ft. along Speer Drive. The applicant requests these deviations to accommodate sufficient aisle widths for the residential and commercial parking areas on the ground floor. The entirety of both front yard setback areas will be improved with landscaping and hardscape walkway improvements that provide a vegetated buffer between the building and street as well as efficient pedestrian access to and from the property for residents, visitors, and tenants. 

The project will not be detrimental to the general welfare of persons working or residing in the vicinity or detrimental to the value of the property and improvements in the neighborhood because it will be compatible with the scale of the surrounding uses by including a large rear yard setback and upper story setback abutting residential uses and orienting commercial activity toward Beach Boulevard. Though reduced from the base requirement, the proposed front yard setbacks along Speer Drive and Beach Boulevard provide appropriate buffering of the overall massing of the project from the public right of way and adjacent uses. The commercial office spaces provide new business tenant opportunities without relying on retail activity, which has recently declined due to the rise of e-commerce, to activate the pedestrian-oriented environment along Beach Boulevard. Parking areas are also located behind the building’s ground floor space, screened from view, providing an improved streetscape experience for bicyclists and pedestrians.

The project includes façade breaks, roof line variation, and architectural treatment to minimize overall building mass and scale and create an appealing modern design. The two building frontages along Beach Blvd. and Speer Drive provide wall offsets and will include varying building materials to enhance its appearance and contribute to an architecturally attractive street scene. The project will be separated from surrounding uses by an 8-foot-high block wall and landscaping, as conditioned, and adequate setbacks.

The granting of the conditional use permit will not adversely affect the General Plan because the project will be consistent with the Mixed Use Land Use Element designation established along Beach Boulevard. The proposed project will comply with the provisions of the BECSP and other applicable provisions in Titles 20-25 of the HBZSO, with the exception of reduced parking and a concession to special height limits adjacent to housing as permitted by the California Density Bonus Law. 

California Density Bonus Law

Pursuant to the HBZSO, the project is required to comply with affordable housing requirements and will provide 10 percent of the proposed project as affordable units.  The income restricted units must be provided on-site with the new development in order to qualify for density bonus and its other benefits. The proposed project will provide two units at affordable rates and these affordable units will be rented to very-low income households.

The applicant is seeking to invoke development tools and privileges outlined in the California Density Bonus Law (CDBL) (found in the California Government Code Sections 65915-65918).  As stipulated in the CDBL, projects providing affordable housing are entitled to a density bonus on a sliding scale based on the percentage of affordable units at each income level.  In addition to a density bonus, local jurisdictions are required to grant concessions to housing projects containing a percentage of affordable units.  A concession is defined as any of the following:  a reduction in site development standards or a modification of zoning code or architectural design requirements (e.g., a reduction in setback or minimum square footage requirements), approval of mixed use zoning, or other regulatory concessions which result in identifiable and actual cost reductions.

The number of required concessions that are granted to an applicant is based on the percentage of affordable units included as part the project. Projects that include 10 percent of the proposed units as affordable to low or very-low income households like the proposed project are entitled to one concession. Concessions are permitted unless it does not result in identifiable and actual cost reductions, would cause a public health or safety problem, would harm historical property, or would be contrary to the law.

In addition to granting concessions, developments qualifying for a density bonus also can receive an unlimited number of waivers from development standards. As such, the City is not permitted to apply development standards that would physically prevent the project from being developed at the permitted density with the granted concessions. However, the City is not required to waive or reduce development standards that would cause a public health or safety problem, cause an environmental problem, harm historical property, or would be contrary to law. A waiver of a development standard does not count as a concession, and there is no limit on the number of development standard waivers that may be requested or granted.

In addition, the CDBL stipulates that the City may not require parking at ratios beyond what is established in the CDBL upon the developer’s request.  Consistent with the CDBL, the project includes the following:

Density Bonus:

The applicant is not requesting a density bonus.

Concession:

The applicant is requesting a concession to remove the special high limits requirement for projects adjacent to housing, as the site abuts a medium density residential property to the west. The applicant has indicated that the concession will result in a cost reduction by allowing the project additional units (utilizing identical second and third floor layouts), which allows for a reduction in the per unit construction costs making the project financially feasible.  If the project is subject to the requirement, only a two-story project would be permitted. Under this requirement, more than half of the 15 units will be lost which increases the per unit cost of construction and would render the development infeasible.

Waivers:

The applicant is not requesting any waivers.

Reduced Parking Ratio:

Per the CDBL, the City may not require more than the residential parking ratios for a density bonus project (inclusive of parking for persons with disabilities, but not commercial parking requirements) outlined in the table below. As illustrated by this table, the proposed project would provide more residential spaces than what is required by the CDBL, and also comply with the BECSP commercial parking requirements.

Unit Type	Type Count	Required Parking Ratio per City Code	Required Parking Spaces per City Code	Maximum Parking Requirements per State Law	Required Parking Spaces per State Law	Provided Parking by the Project
Studio/ 1 Bedroom	4 units	2 per unit	8	1 per unit	4	4
2 Bedroom	9 units	2 per unit	18	1.5 per unit	13.5	14
3 Bedroom	2 units	2.5 per unit	5	1.5 per unit	3	4
Guest	-	5 guest spaces (per 10 units)	7.5	0 spaces	0	0
Commercial Office	1,000 sq. ft.	4 per 1,000 sq. ft.	4	N/A	N/A	5
Total			39 Residential	-	20.5 Residential	22 Residential

Urban Design Guidelines Conformance:

The project complies with the applicable architectural regulations and guidelines of the BECSP, as discussed in the staff report. Below are the ground floor site plan, perspective views, and representative building elevations.

Site Plan

Perspective (Looking Northwest)

North Elevation (Along Speer Drive)

Environmental Status:

The project will not have any significant effect on the environment and is exempt from the provisions of CEQA pursuant to section 15182 of the CEQA Guidelines and Government Code 65457, because the project is a mixed use development that conforms to the BECSP for which Program EIR No. 08-008 was adopted, and implementation of the project would not result in any new or more severe potentially adverse environmental impacts that were not considered in the Final EIR for the BECSP.  The project is required to comply with all applicable mitigation measures adopted for BECSP. The applicant prepared a Consistency Evaluation for the project in comparison with the analysis of EIR No. 08-008 (Attachment No. 5) that concludes that in light of the whole record, none of the circumstances described under Section 15162 of the CEQA Guidelines are present and, therefore, no EIR or MND is required.

Coastal Status:

Not applicable.

Design Review Board:

Not applicable.

Other Departments Concerns and Requirements:

Public Works, Building, Fire, Police, and Community Services staff reviewed the proposed project and identified code requirements applicable to the project (Attachment No. 6).

Public Notification:

Legal notice was published in the Huntington Beach Wave on Thursday, August 29, 2024 and notices were sent to property owners of record and occupants within a 500 ft. radius of the subject property, individuals/organizations requesting notification (Community Development Department’s Notification Matrix), and applicant. No written communications have been received as of the publication of this staff report.

Application Processing Dates:

DATE OF COMPLETE APPLICATION:	MANDATORY PROCESSING DATE(S):
July 2, 2024	September 2, 2024 (Council Chambers unavailable in August 2024)

SUMMARY:

Staff recommends approval of CUP No. 23-007 with findings and conditions (Attachment No. 1).

This recommendation is based on the following:

-                     The project is consistent with the General Plan and its goals and policies.

-                     The project is compatible with the surrounding area.

-                     The project complies with the provisions of BECSP and HBZSO with the exception of the reduced parking, proposed front yard setback reduction, and concession permitted under the CDBL.

-                     The project adds to the City’s housing stock, including affordable housing, and RHNA targets.

ATTACHMENTS:

1.                     Suggested Findings and Conditions of Approval of Conditional Use Permit No. 23-007

2.                     Vicinity Map

3.                     Site Plan, Floor Plans, and Elevations received and dated May 16, 2024

4.                     Project Narrative

5.                     CEQA Consistency Analysis dated May 2024

6.                     Code Requirements Letter (for informational purposes only) dated July 5, 2024