Meeting Date: June 28, 2021 Item Number: 1

ADMINISTRATIVE HEARING AGENDA REPORT

SUBJECT: Request for a Minor Use Permit for operation of a six-room Boarding . PROJECT ADDRESS: 972 Santa Rosa St. BY: Walter Oetzell, Assistant Planner Phone: 781-7593 FILE NUMBER: USE-0163-2021 Email: [email protected]

RECOMMENDATION Approve the application, granting a Minor Use Permit to operate a Boarding House in the Commercial Retail (C-R) Zone.

SITE DATA

Applicant and Tim Beresky and Hank Mott Property Owner Complete Date April 7, 2021 General Plan General Retail Business (BP) Site Area 7,135 sq. ft. Environmental Categorically Exempt Status Existing Facilities (CEQA Guidelines §15301)

1.0 PROJECT INFORMATION Site Information and Setting The subject site is a 7,135 square-foot parcel on the east side of Santa Rosa Street, about 150 feet north of Monterey Street, within a Retail Commercial (C-R) Zone. It is developed with a residential structure, built in 1928, most recently used as a , and with a small accessory and six-space parking area behind the building. Vehicle access is taken from the “Monterey-Palm” alley that travels between Toro and Santa Rosa Streets, along the northern edge of the site.

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Proposed Use The applicant proposes to operate a six-room Boarding House1 for up to nine occupants, as described and depicted in the applicant’s statement, as amended, (Attachment 1) and plans (Attachment 2). Each of the rooms in the building will be rented to individual tenants, under separate lease agreements. Use of the main building as a Boarding House is facilitated by its prior use as a Hostel, with no further improvements necessary in order to prepare the building for its proposed new use, apart from installation of a kitchen. A living room, den area, dining area, and 2 ½ bathrooms are available to the tenants. New kitchen facilities are proposed to be installed in the “Den” area depicted on the south side of the building floor plans. Six parking spaces are provided in the on-site parking area. Two additional spaces are to be provided at the rear of 960 Santa Rosa (accessible by the “Monterey-Palm” alley) by an “Off-Site Parking Agreement” with the owner of said property (see Attachment 1).

2.0 FOCUS OF DISCUSSION Relevant Documents: Zoning Regulations https://www.slocity.org/home/showdocument?id=5861

Zoning Regulations

§ 17.10.020 Boarding House is a use which requires a Minor Use Permit in order to be Use Regulations by established within a Retail Commercial (C-R) Zone, as set out in Table 2-1 Zone (Uses Allowed by Zone).

§ 17.72.030 (A) Boarding shall be provided with at least 1 space per 1.5 occupants Required Parking or 1 space per 1.5 bedrooms, whichever is greater. Spaces

§ 17.146.010 (C) Use permits for boarding houses shall stipulate a maximum occupancy. The Residential Occupancy occupancy limits shall reflect habitable space within and available Standards parking and shall not exceed a Maximum Population Density of 55 persons per net acre (for C-R Zone).

Discussion. The proposed Boarding House is consistent with applicable regulations set out in Zoning Regulations. Boarding Houses may be operated within a Retail Commercial (C-R) Zone, under a Minor Use Permit granted by the Community Development Director. This form of housing typically consists of one or two people sharing an individual room and, as described in the City’s Housing Element, their small size and limited amenities generally make such housing an affordable option for lower income persons and others who do not desire or require large dwellings

1 A boarding house is a residence or dwelling, other than a or hotel, wherein two or more rooms, with or without individual or group cooking facilities, are rented to three or more individuals under separate rental agreements or leases, either written or oral, whether or not an owner, agent or rental manager is in the residence. Meals may also be included. (Zoning Regulations § 17.166.006)

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or private domestic appliances.2 The main building is a converted single-family dwelling, recently used for lodging accommodations (as a Hostel), and is thus suited to residential use. The accessory building behind and adjacent to the house had served as office space, and as stated in the applicant’s Project Description (Attachment 1), provided at least one bedroom to the most recent Hostel use. Staff notes that, while occupancy of the two proposed rooms in the accessory structure as sleeping rooms is subject to verification by Building & Safety staff, for conformance to relevant Building Code provisions, Building & Safety has reviewed the Project Plans submitted with this application and did not identify a conflict with applicable code provisions for use of the rooms as sleeping rooms.

Although located in a commercial zone, the Boarding House is adjacent to a residential building to the north, and the vicinity around the Boarding House is characterized by government offices and small-scale professional offices (many within converted single-family dwellings) which do not generate disturbances from noise, odor, dust, or vibrations that would negatively impact its residents.

Parking and Maximum Occupancy. Under the Parking Requirement set out in Zoning Regulations for Boarding Houses, the six parking spaces available on-site can serve a maximum of nine tenants (or up to nine bedrooms), and the addition of two off-site spaces would bring this to a maximum of twelve tenants. However, this site, measuring about 7,135 square feet in area can only accommodate up to nine tenants, following the Residential Occupancy Standards applicable to Boarding Houses, 3 which limit density to 55 persons per acre. A condition of approval (Condition 2) stipulates a maximum occupancy of nine tenants, reflecting the limitation imposed by Residential Occupancy Standards. At that occupancy, additional off-site parking spaces are not necessary, and therefore an Off-Site Parking Agreement is not required in order to satisfy the parking requirement for this Boarding House.

3.0 ATTACHMENTS 1. Project Description (as Amended by Applicant) 2. Project Plans

4.0 ACTION ALTERNATIVES 1. Continue the item to a subsequent hearing date (either certain, or uncertain) with specific direction to the applicant and staff. 2. Deny the Minor Use Permit. An action denying the application should include findings that cite the bases for denial and should reference inconsistency with the General Plan, Zoning Regulations, or other policy documents. 3. Approve Minor Use Permit USE-0163-2021, allowing the establishment and operation of a Boarding House in the Retail Commercial (C-R) Zone, at 972 Santa Rosa Street, based on the following findings and subject to the following conditions of approval:

2 See City of San Luis Obispo Housing Element 2020-2028, pg. B23 3 Zoning Regulations Ch. 17.146 – Residential Occupancy Standards

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Findings 1. As conditioned, the proposed use is consistent with the General Plan. It is located in an area designated for General Retail uses, within which a Boarding House may be permitted with a Minor Use Permit. The provision of housing to meet the full range of community needs, and variety in location, type, size, tenure, and style of dwellings, are primary City housing Goals (Housing Element, Goals 5 and 6). The type of housing provided under this proposal enhances the variety of available dwellings, meeting the needs of those seeking smaller or more affordable forms of housing. 2. As conditioned, the proposed use is allowed within the applicable zone and complies with all other applicable provisions of these Zoning Regulations and the Municipal Code. A Boarding House may be allowed in the Retail Commercial (C-R) Zone by a Minor Use Permit approved by the Community Development Director (Zoning § 17.10.020(A)). Consistent with applicable parking requirements, six parking spaces are provided to accommodate up to nine tenants. A condition of approval (Condition 2) stipulates a maximum occupancy of nine tenants, reflecting the limitations of the Residential Occupancy Standards (Zoning Ch. 17.146), which limit residential density for Boarding Houses in the Retail Commercial (C-R) Zone to 55 persons per net acre. 3. As conditioned, the design, location, size, and operating characteristics of the proposed activity will be compatible with the existing and future land uses in the vicinity. The proposed Boarding House will operate within an existing residential structure located in a characterized by commercial office activities, with little potential for incompatibility with, or deleterious impacts to residents from, noise, odor, dust, or similar conditions arising from operation of the Boarding House or from surrounding office uses. 4. As conditioned, the site is physically suitable for a Boarding House. The proposed Boarding House will occupy an existing residential structure designed to provide residential accommodations, which previously accommodated a similar use, a Hostel, and two rooms will be provided in an adjacent accessory structure, subject to demonstration of conformance to Building Codes applicable to their use as sleeping rooms. An adequate number of parking spaces for the Boarding House occupants is provided, consistent with Parking Requirements set out in the City’s Zoning Regulations. As such, the use will not generate additional traffic or demand for public services or utilities beyond existing levels. 5. As conditioned, the establishment and subsequent operation or conduct of the use will not, because of the circumstances and conditions applied in the particular case, be detrimental to the health, safety or welfare of the general public or persons residing or working in the neighborhood of the use, or be detrimental or injurious to property or improvements in the vicinity of the use. The proposed Boarding House will provide residential dwellings for a limited number of tenants (nine tenants) within a residential structure designed to provide residential accommodations, and in two rooms in an adjacent accessory structure, subject to demonstration of conformance to Building Codes applicable to their use as sleeping rooms. There are no known circumstances or conditions that would cause its establishment and operation to be detrimental to the health, safety, or welfare of people or property in its neighborhood and vicinity.

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6. Approval of a Minor Use Permit to establish a Boarding House at this site is categorically exempt from environmental review under the California Environmental Quality Act (CEQA). The use consists of operation of a Boarding House within existing structures, without expansion of existing or former uses, as described in CEQA Guidelines § 15301 (Existing Facilities).

Conditions Planning 1. Use Limitation. This Use Permit shall be limited to the operation of a Boarding House, consisting of six rooms rented to individuals under separate rental agreements or leases, as defined in the City’s Zoning Regulations (§ 17.166.006), depicted in plans submitted with this application on April 7, 2021, and included in the record file for this application, and as modified by any conditions of approval herein. Upon significant change in operational characteristics, as determined by the Community Development Director, this Use Permit shall be subject to review and modification as provided by Zoning Regulations § 17.110.080 (A).

2. Maximum Occupancy. Pursuant to Zoning Regulations §17.146.010 (C), regarding Residential Occupancy Standards, the maximum occupancy for this Boarding House shall be nine persons, consistent with the Maximum Population Density standard for Boarding Houses in the Retail Commercial (C-R) Zone.

3. A review hearing may be scheduled at any time upon receipt of evidence that the use is not in compliance with conditions of approval and the Municipal Code. At the time of the use permit review, conditions of approval may be added, deleted, or modified or the use permit may be revoked.

Fire 4. Cooking activities and cooking appliances (hotplates, portable stoves or cooktops, toasters and toaster ovens, etc.) are not permitted except within a kitchen area installed under valid construction permits issued by the City.

5. Smoke alarms and carbon monoxide detectors shall be installed in appropriate locations as required by the California Building Code.

Indemnification 6. The applicant shall defend, indemnify and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this project, and all actions relating thereto, including but not limited to environmental review (“Indemnified Claims”). The City shall promptly notify the applicant of any Indemnified Claim upon being presented with the Indemnified Claim and City shall fully cooperate in the defense against an Indemnified Claim.

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ACTION  Approve  Approve as Modified (see Recommended Conditions) *  Deny for the following reasons: ______

 Continue to: to allow ______

 Continue indefinitely to allow ______

______Brian Leveille, Senior Planner Hearing Officer

*Note that project conditions of approval do not include mandatory code requirements. Code compliance will be verified during the plan check process, which may include additional requirements applicable to the project.

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