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HomeMy WebLinkAboutAgenda: Study Session Item a: Potentioal Development of property located at 5430 Durfee AvenueGNOFOR r m... P ma AuOu.� S, 190) e6 STAFFIRTEPORT Development Services Department DATE: August 7, 2012 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director:5-r,V- SUBJECT: REPORT, DISCUSSION, AND DIRECTION CONCERNING POTENTIAL DEVELOPMENT AND /OR BOUNDARY REORGANIZATION OF THE PROPERTY LOCATED AT 5436 DURFEE AVENUE Recommendation: Provide Direction SUMMARY On June 28, 2012, the City Manager's office received a letter from David Cook of Baldwin Park Homes concerning a desire to build single - family homes at 5436 Durfee Avenue. This property is located in the extreme southeast corner of Arcadia, at the end of Clark Street, adjacent to the City of El Monte (see Attachment A). The property is approximately 5.2 acres in size and is zoned M -1 (Light Industrial). Properties to the northwest of the site in Arcadia are developed with industrial buildings, but property to the south and directly west of the site are zoned and developed as single - family residential in El Monte. The primary request is to re -zone this parcel to allow residential development of this site and remain in the City of Arcadia. However, Baldwin Park Homes (applicant) would also be interested in annexing this property to the City of El Monte if the City of Arcadia is not interested in residential development at this location or does not wish to hold the property as industrially -zoned property. Direction is requested from the City Council on which option to pursue. BACKGROUND The subject property has long been vacant and has formerly been utilized for outdoor storage uses. The property also has a history of code enforcement problems related to illegal dumping and storage. The City's industrial area (generally including Clark Street and Goldring Road) is located to the northwest. To the east of the property is a quarry operation primarily within the City of Irwindale, and property to the southeast is the Lower Azusa Road Reclamation Area within Arcadia. The most immediate neighbors, however, are residents to the west and south within the City of El Monte. The City has received several proposals over the years to develop the site with industrial uses commensurate with the zoning. The most recent of these applications was in 2006- 2007, but this project was not pursued. 5436 Durfee Avenue August 7, 2012 Page 2 of 4 The City has also received requests to develop a residential project in this location. In fact, in late 2004 and early 2005 the City Council entertained a proposal from a developer to annex this property into El Monte. On January 18, 2005, the City Council approved in concept a potential annexation along with several recommended conditions (see Attachment B). However, this project was also not pursued. The current request is very similar to the request received in 2004. DISCUSSION The applicant is interested in building homes with an Arcadia address. The attached plan represents the type of development being contemplated, and it is clear that this particular developer has experience with this type of development. Attachment C illustrates a potential project for this site with approximately 49 detached single - family homes. This proposed project is at a higher density than Arcadia's single - family zones would allow, at 9.4 units per acre. As a result, this project would require a Specific Plan, in addition to a Zone Change and General Plan Amendment, to be developed in the City of Arcadia. The applicant has also developed industrial buildings similar to the building contemplated on this site several years ago. The applicant has asserted that the market for industrial space is depressed and there is a great deal of existing space currently unoccupied in the region. This is consistent with what the Planning Division has experienced in recent years. As a result, a new industrial project on this site is unlikely in the near future. Further, the applicant is aware of the history of this parcel, and of the City's concerns surrounding residential development at this location. In response to this, part of the request is for the City to consider a public services "district" to be approved as part of the project. Similar to a Homeowner's Association, this would be a Mello- Roos district whereby residents would pay an annual fee that would accrue to the City to fund additional service costs associated with residential development at this location. No specific dollar amount is proposed at this time, but the concept was raised for City Council consideration. However, as correctly analyzed by the applicant, the most important issue when evaluating potential Arcadia residences in this location is the provision of public services, namely Fire and Police Services. If residences were built in Arcadia at this location, response times for Fire and Police would be substantially different than for any other residential location in the City. The nearest Fire Station is Fire Station 106, located on South Santa Anita Avenue. Residences at Durfee Avenue could not, based on simple response times alone, be afforded the same level of service as other residential areas in Arcadia. This is not consistent with the level of service the City expects to provide to its residents. The public services district proposed by the applicant is a fair and worthwhile gesture, but the funding that could be generated by such a district would not address the safety response times. The Development Services Department has been consistent in informing applicants over the years that residential development in this area of Arcadia is problematic. Residential development in this area would be inconsistent with the zoning of the area, 5436 Durfee Avenue August 7, 2012 Page 3 of 4 inconsistent with the General Plan, and incompatible with the current industrial uses in Arcadia to the northwest of the property. Taking a long term view, if the Lower Azusa Reclamation Area to the southeast redevelops with industrial or commercial uses, it is possible that this site would be more viable as an industrial use. Even though there is a buffer (and elevation change) between the Reclamation Area and the Durfee property, the compatibility of up to 49 new homes in this area could be an issue with future development of that property as a commercial or industrial project. Additionally, it is possible that the industrial market will improve in the next few years, enhancing the value of the site under its current zoning. There have been no substantial concerns received from staff relative to residential development in El Monte's jurisdiction. As has been stated, there are single family homes to the west and south of the subject property within El Monte and a residential development at this location makes sense for that city. El Monte staff and management were supportive of this concept in 2005 and through recent communication with City of El Monte, it appears that this remains the preferred development type for the City of El Monte. The options available to the City in this case are as follows: 1) Conclude that residential development in this location is not desirable and keep the property as an industrial -zoned parcel. 2) Conclude that residential development is the highest and best use for the property and signify the City Council's interest in entertaining a Zone Change and General Plan Amendment (and possibly a Specific Plan and Public Service District) to review the possibility of allowing residential at this location. 3) Conclude that residential development is a logical use at this location, but only if it is located in El Monte. Provide conceptual approval of an annexation of this property to El Monte. If the City Council chooses to approve Option #3, it is recommended that all costs for the annexation process be borne by the applicant (or the City of El Monte if they choose to be involved). In addition, there has historically been interest from the community in retention of an equestrian easement located within this site to allow access from Durfee Avenue to the horse trail located north of the Arcadia Reclamation site. It is recommended that retention of this easement be considered as part of any future annexation request or future development. FISCAL IMPACT There is no immediate fiscal impact from this choice. Over time, there will be a loss of future property tax and potentially sales tax to consider, although this is highly dependent on the use of the property. Given that there is little market now or in the immediate future for light industrial development, the fiscal impact of de- annexing the property appears to be less than significant. If the property is annexed into El Monte, 5436 Durfee Avenue August 7, 2012 Page 4 of 4 there will not be a direct cost to the City of Arcadia for the annexation because all costs will be borne by the applicant. RECOMMENDATION Provide direction. APPROVED BY: Dominic Lazzare City Manager Attachment A: Property Map Attachment B: January 18, 2005 Staff Report and Minutes on former annexation request Attachment C: Applicant's letter of interest and general development proposal j s Mt"X 1• ° `r ITMF TIT , - a �•r � � . L Gab _ -,. CL � &�Wl E4411�11, 9. * - & STAFF REPORT Development Services Department January 18, 2005 TO: Mayor and City Council FROM: Don Penman, Assistant City Manager /Development Services Director By: Donna L. Butler, Community Development Administrator/ SUBJECT: Proposed Boundary Reorganization between the City of Arcadia and the City of El Monte Recommendation: Conceptually approve the proposed reorganization SUMMARY On October 5, 2004, the City Council considered a request by Western Pack. Development & Construction Company, Inc. to annex to the City of El Monte a 5± acre parcel fronting on Durfee Avenue currently located in the City of Arcadia (see attached map). The City Council tabled Its consideration of this item for three months in order to further analyze the impacts of the annexation on the City of Arcadia. The site is currently used for outdoor storage and was recently purchased by Western Pacific. Western Pacific would like to develop the site with market rate single - family detached homes. ' El Monte has approved the concept of the boundary reorganization (annexation), but prior to proceeding with the formal process through LAPCO (the Local Agency Formation Commission), El Monte would like some assurance from the Arcadia City Council that the City supports the proposed reorganization. It is the Development Services Department's opinion that the proposed boundary reorganization is appropriate because of the location and surrounding development, and recommends that the City Council approve, in concept, this request. BACKGROUND AND DISCUSSION Approximately two years ago, Western Pacific Development & Construction (i.e. Western Pacific or applicant) contacted the City with a proposal to develop approximately three (3) acres of property located In Arcadia on the east side of Durfee Avenue, south of Clark ® Durfee Reorganization Page 1 January 18, 2005 Avenue with medium density residential. Since Westem Pack's initial contact with the City, the project site has been increased to 5.19 acres. The properties are zoned M -1 (light industrial) and the General Plan designation is is "Industrial." The site is currently used for outdoor storage. Properties to the northwest along Clark Street are located in Arcadia and developed with industrial uses. Property to the east is a quarry operation primarily located in the City of Irwindale with a small portion located in Arcadia. Properties to the west and south are located in the City of El Monte and developed with single - family residences. Property to the southeast of the site is located in Arcadia and is the site of the Arcadia Reclamation Project (old Rodeffer Quarry). The Arcadia City boundary is adjacent to the easterly side of Durfee. Avenue. The street, Durfee Avenue, is within the City of El Monte jurisdiction. During the initial meetings, the Development Services Department advised Western Pacific that it was not likely that staff would support residential development in this area of the City of Arcadia. It was mentioned that residential would be inconsistent with the Arcadia General Plan designation of industrial as well as the M -1 zoning. Because Western Pacific wanted to construct housing, they presented the idea of annexing the property into the City of El Monte. They pointed out that Durfee Avenue is In the City of El Monte as well as the residential properties to the west and south.of the subject site. After discussion with other Arcadia City departments, staff advised Western Pacific that' a boundary reorganization (annexation) might be considered If the City of El Monte agreed to the idea. It was mentioned, however, that a direct connection would have to be maintained between the Arcadia City limits along Clark Street and the Arcadia Reclamation site located in Arcadia to the southeast of the subject property. Since the applicant's initial proposal, Arcadia and El Monte staff have met regarding this possible annexation. Because of the proximity of homes along Durfee Avenue in the City of El Monte, both city staffs agreed that the annexation of this area Into El Monte seemed appropriate. Conversely, developing residential- in this area of Arcadia would be inconsistent with the Arcadia General Plan, the zoning and the typical industrial development to the north along Clark Street. There are no industrial uses fronting on Durfee Avenue. Industrial development of this property in conformance with Arcadia's General Plan and zoning could be considered incompatible with the residential properties located on Durfee Avenue in El Monte. Industrial uses tend to generate more noise and truck traffic which may be disruptive and inappropriate when located immediately adjacent to residential properties. Residential development in this area would be more compatible with the single - family residential properties located within El Monte to the south and west of the subject properties than industrial uses. Because of the property locatlon, both Arcadia and El Monte City staff agree that this property could be better served by.the City of El Monte and In all appearances appears to be located with El Monte. Durfee Reorganization is Page 2 January 18, 2005 impacts of Reorganization If the subject property is developed with industrial ,uses, Arcadia would, benefit from an increase in property taxes as a result of development. Although there are some industrial uses that generate sales tax, most industrial uses do not create additional revenues over and above the property taxes. So for purposes of this discussion, staff would assume that any industrial development would not generate sales tax. In regards to services, in August 2003, the Development Services Department circulated a memo to Police, Fire and Public Works Services regarding the potential "detachment/annexation" of the property on Durfee Avenue. The departments noted that there were "no strong" reasons to oppose such an action. However, it was noted that because this property abuts "industrially zoned property in Arcadia and Irwindale to the north and east respectively, future property owners should be made aware of potential noise and proximity issues prlor to purchasing a home in this area so that neither Arcadia or El Monte police are burdened by nuisance complaints related to such industrial uses." As a not the industrial property to the north that is accessed from Clark Street is developed with small warehouse units with no manufacturing so the impact on potential residential uses is minimal. In reviewing the pros and cons of the City reorganization, there are no disadvantages to maintaining. this property within the City of Arcadia. The property is privately owned and currently used for outdoor storage, which is a legal nonconforming use. However, the property generally Is poorly maintained. The site is accessible only from Durfee Avenue which Is entirely located within the City of El Monte. If the property was developed with industrial uses, the City would benefit from some increase in property taxes, though the amount is difficult to determine. Another option would be to allow development of residential uses within the City of Arcadia. Residential is Inconsistent with the Arcadia's General Plan and 'zoning and logically does not make sense when there are no other properties In this area of the City of Arcadia developed with residential uses. It would be difficult to service this residential area, particularly Arcadia public safety services. Western Pacific has made it clear that they wish to develop the property with market rate housing units to complement and enhance the existing residential properties within the City of El Monte. In a letter to the City of El Monte, the Development Services Department commented that In theory "Arcadia would support a residential project compatible with the surrounding neighborhood along Durfee Avenue" if the property were annexed to the City of El Monte. It was noted, however, that the equestrian easement located within the site should be maintained across the property to provide access from Durfee Avenue to the horse trail located north of the Arcadia Reclamation site. Durfee Reorganization Page 3 January 18, 2005 The City received the attached letter dated December 13, 2004 from the City of El Monte supporting the annexation and noting that in.June 2003 the El Monte City Council granted conceptual approval to the reorganization proposal presented by Western Pacific Development to develop the site with single- family detached units ranging in size from 2,200 -2,700 sq: ft. with sales prices between $500,000 and $600,000. It is El Monte's opinion that development of the site with residential uses will serve as a transition between the industrially zoned properties in Arcadia and the residential horse properties in El Monte. Applicant's Proposal The proposed area of the boundary reorganization is 5.18 acres. The applicant is proposing to construct a planned residential development with 'a maximum of 34 dwelling units (approximately, 6.6 dwelling units per acre). At this-time, the_ plan is tentative pending the annexation. According to the applicant as the project progresses modifications to the plan may be necessary as required by the City of El Monte. If the reorganization is approved, the easterly portion of the site adjacent to the City of Irwindale will remain within the City of Arcadia, providing a connection to,the' remainder of the City located along Lower Azusa Road including the Arcadia Reclamation site and the industrial complex on the south side of Lower Azusa Road. The narrowest portion of this connection within Arcadia would be 30' -0 ". A portion of this area is comprised of slopes for the adjoining quarry. ''The horse trail would be relocated at the northerly boundary of the parcel and along the easterly boundary to provide access to the horse riders in the area. This trail proceeds east between Irwindale and Arcadia north of the Arcadia •; Reclamation site. LAFCO LAFCO (Local Agency Formation Commission) is the regulatory agency responsible for reviewing and approving jurisdictional boundary changes. A routine application that is non - controversial typically takes approximately 3 to 4 months -to process after a complete application is submitted to the LAFCO office. It is anticipated that the landowner (Western Pacific) would initiate the boundary reorganization- although an agency, in this case the City of El Monte, may also initiate a petition., Prior to annexation to a city, the property must be pre - general planned and pre- zoned. In addition the applicant may be required to submit Information for an environmental assessment. In order to proceed with the boundary reorganization, - Western Pacific Development & Construction is requesting that the City Council approve the concept of the boundary reorganization to the City of El Monte. Durfee Reorganization Page 4 January 18, 2005 If the Council approves this concept, Western Pack will proceed with the appropriate pre - General Plan and pre- zoning of the property to residential with the City of El Monte. Once that has been completed and the appropriate resolutions adopted, the applicant may proceed with filing for boundary reorganization with LAFCO. FISCAL IMPACT If the City Council approves the concept for boundary reorganization, staff would recommend that the applicant pay any costs to the City of Arcadia that might be incurred as a result of this de- annexation, including staff time. From a revenue standpoint, because the properties involved in the annexation from the City of Arcadia to the City of El Monte are essentially, current property tax receipts to the City of Arcadia are minimal. However, this was prior to the recent sale of the properties to Western Pacific so staff is not aware of the new property tax base. If the site were developed with a 110,000 sq. ft. industrial building (50% FAR), the City might receive approximately $10,000+ in property taxes a year. There are no direct costs to the City associated with the annexation. RECOMMENDATION That the City Council approve In concept the request for a boundary reorganization as illustrated on the attached maps to permit approximately 5.19 acres of land in the City of Arcadia to be annexed into the City of Ell Monte with the conditions: (1) that the horse trail be relocated to the northerly boundary of the parcel and along the easterly boundary to provide access to the horse riders in the area, (2) that Western' Pacific pay all City of Arcadia costs for the processing and (3) that the density of the proposed project not exceed approximately 6.6 dwelling units per acre or 34 dwelling units. Approved: Ainmy William R. Kelly, City Manager cc: December 13, 2004 letter from the City of 'El Monte Maps of the proposed boundary reorganization Durfee Reorganization Page 5 January 18, 2005 CITY OF EL MONTE CITY MANAGER'S OFFICE December 13, 2004 Mr. William R. Kelly, City Manager City of Arcadia P.O. Box 60021 Arcadia, CA 92006 -6021 Subject: Proposed Durfee Avenue /Clark Street, Detachment/Arinexation Dear Mr. Kelly; Juan D. Mireles Ciry Manager James W. Mussenden Assislani City Manager This letter is intended to provide you and the Arcadia City Council additional information about the proposed detachment/annexation of a —5 acre site located near the intersection of Durfee Avenue and Clark Street in Arcadia In June of 2003, the El Monte City Council granted conceptual approval to the detachment/annexation proposal presented by Western Pacific Development. Western Pacific currently owes the site and they are proposing to build 34 single - family detached units ran ging in size from 2200 -2700 square feet, with a corresponding sales price between $500,000 and $600,000: _ Development of the site with residential uses will serve as a transition between the industrially zoned properties in Arcadia and the large lot, horse properties in El Monte. At this point, the property owner and El Monte staff are seeking conceptual approval before proceeding with a formal application to LAFCO, We-understand that this conceptual approval is non - binding and that your City Council will have at least two opportunities to take formal action on the project before the annexation is approved. We hope this letter'A"Ill clarify, issuesthat'the.Arcadia City Council raised in October and that this item can again be presented to your City Council for their consideration. If you have any further questions, please feel free to contact me. Sincerely, AN D. MMLES ity Manager .1I333 VALLEY BOULEVARD, EL MONTE, CALIFORNIA 91731 -3293 /(626)580-2001 / FAX (626) 453 -3612 EMAIL: L-ityNiginilp- n ci.el-montext,ill WEBSrrE: w+l w.ci.el- mante.cn.ua • O f I r At .. I � � i t j.1 ;• a4Q Il / _` I W. HIM-, SHEET I OFA SHEET- -ML.'r 109". %.... . . PLAT UNP IN ;,fCOLMY Mf L09 W --cm, 'OF, _OT AD.2-- n Tw.;pRopiRm'ld N' dWaW Dina= domfbW In Ofth. peg. M-Ind6atsd waft 4wc • ..OF MWE us -1436A ' AVEMM-114OM- 31 M F mAwl; .014 .0 MOM fMFA'.i '226_383 SOME 6; iv 13-WO' -5 *F _AM' PA 8532 —D18 =024 v 00, LAKE.", APR AW-C14-ROD1 ZT, n 47:00012 CONSENT CALENDAR - CITY COUNCIL b. Minutes of the January 4, 2005 continued meeting. Recommendation: Approve C. Professional Services Agreement - Update Pavement Management Program Recommendation: Award a Professional Services Agreement to Bucknam & Associates, Inc. in the amount of $32,414 to update the citywide pavement management program; and authorize the City Manager and City Clerk to execute a contract in a form approved by the City Attorney. d. Award - Construction Management and Material Testing Services for Santa Anita Reservoir No. 4. Recommendation: Award a professional services agreement in the amount of $270,000.00 to Metcalf & Eddy, Inc., for the construction management and inspection of the Santa Anita Reservoir No. 4 project; and award a professional services agreement in the amount of $55,120.00 to Ninyo and Moore Consulting, for material testing during the construction of the Santa Anita Reservoir No. 4 project; and authorize the City Manager and City Clerk to execute contracts in a form approved by the City Attorney. e. Total Compensation Study. Recommendation: Authorize the City Manager to enter into a Professional Services Agreement with Johnson and Associates for a total compensation study for an amount not to exceed $26,000.00. f. Additional appropriation for Police DepartmentLErearms Training Range Recommendation: Approve an additional $39,815.00 from Asset Seizure Funds to complete the firearms training range project. g. Contribution to Arcadia Music Club IQ Delp with their participation in the Presidential Inaugural Parade. Recommendation: Appropriate $500.00 from the General Fund Reserve and approve a contribution in the same amount to the Arcadia High School Music Club. Motion A motion was made by Council Member Chandler, seconded by Council Member Marshall, and carried on roll call vote to approve items 2.b through 2. g. on the Consent Calendar. Roll Call Ayes: Council /Agency Members Chandler, Marshall, Segal, Wuo and Kovacic Noes: None. 3. CITY MANAGER a. Proposed Boundan+ Reorganization between the City of Arcadia and the City of El Monte Mr. Penman presented the staff report; he noted that staffs recommendation represented the highest and best use of the property; he further noted that staff addressed the various benefits and impacts of keeping the land in Arcadia. 7 01 -18 -05 47:00013 Motion A motion was made by Council Member Chandler, seconded by Council Member Segal and carried on roll call vote to approve in concept the request for a boundary reorganization to permit approximately 5.19 acres of land in the City of Arcadia to be annexted into the City of El Monte with the conditions: 1) that the horse trails be relocated to the northerly boundary of the parcel and along the easterly boundary to provide access to the horse riders in the area, 2) that Western Pacific pay all City of Arcadia costs for the processing, and 3) that the density of the proposed project not exceed approximately 6.6 dwelling units per acre or 34 dwellino units. Roll Call Ayes: Council /Agency Members Chandler, Marshall, Segal, Wuo and Kovacic Noes: None. b. Prodamation of a local gmgrgenCy Recommendation: Adopt a Resolution that ratifies the Director of Emergency Services' issuance of a local emergency proclamation. Motion A motion was made by Council Member Segal, seconded by Council Member Chandler and carried on roll call vote to approve Resolution No. 6459: A Resolution of the City Council of the City of Arcadia, California, ratifying the proclamation of the existence of a local emergency within said city pertaining to the torrential rain and related matters commencing on January 8, 2005. Roll Call Ayes: Council /Agency Members Chandler, Marshall, Segal, Wuo and Kovacic Noes: None. ADJOURNMENT The City Council, noting no further business, adjourned the meeting at 11:30 p.m. in memory of Former Mayor Robert Considine and Mr. John Dickson, to Tuesday, February 1, 2005, at 6:00 p.m., City Council Chamber Conference Room. ATTEST: James H. Barrows, City Clerk .,� 8 01 -18 -05 1 1 1 Baldwin Park Homes, LLC 1773 San Bernardino Road Suite 41 West Covina, CA 91791 June 27, 2012 Dear Dominic Lazzaretto, RECEIVED CITY OF ARCADIA JUN L 8 2012 CITY MANAGER The purpose of this letter is to express our continued desire to build Single Family Detached homes at 5436 Durfee Avenue in Arcadia. We would like to thank you and your staff for meeting with us to discuss our desire to purchase and build homes at 5436 Durfee Avenue. We strongly believe that our extensive experience and flexibility would enable us to build a project that would produce significant income for the City while contributing favorably to the high standards of livability and community that are hallmarks of Arcadia.. If, after careful consideration, the City Council determines that our proposal is not the best fit for Arcadia at this time, we would request the City's concurrence with an initiative to allow the City of El Monte to annex this property. While it would be more expeditious and our preference is to build the homes within the City limits of Arcadia, building in El Monte is preferable to condemning this site to continued underutilization. We would appreciate the opportunity to provide you, your staff or the City Council any information to assist in their deliberation of this housing proposal, yllyere , -- --------- z 1 5436 D.,Fft Avtnue, Aaj,, CA r T'.'_ AuRra . Um sq.i. A­ Ot.-, - GO IV Mal),' 5436 0.6, e Avenue. Arcadia. CA U36 Dulte Ave A 02 r 71 Plk <777 04 2k OF, YQ Y�ga 7�RE 1p �$ H $�E b 4 3 E iE B O n i „ o i o Z A A A 4� Ff�Y9 T€ pap! (i 6� { .� .r a � '1st. y,✓+: � .:. }.�.y+�" "��a <�,`�, AN a.