Community Development STAFF REPORT Planning Commission Meeting Date: 4/23/2018 Staff Report Number: 18-040-PC Public Hearing: Environmental Impact Report Addendum, Specific Plan and Zoning Ordinance Amendment, Architectural Control, Use Permit, and Below Market Rate (BMR) Housing Agreement/Peninsula Arts Guild/949 El Camino Real Recommendation Staff recommends that the Planning Commission review and provide a recommendation that the City Council make the necessary findings and take actions for approval of the Guild theater renovation project at 949 El Camino Real, as outlined in Attachment A. The Planning Commission should provide recommendations to the City Council on the following entitlements and environmental review components of the proposed project: 1. An Addendum to the Specific Plan Program Environmental Impact Report (Program EIR) to analyze the potential environmental impacts of the proposed Specific Plan and Zoning Ordinance Amendments; 2. A Specific Plan and Zoning Ordinance Amendment to allow a live performance facility with community benefits, located in a feature building north of Live Oak Avenue in the ECR SW (El Camino Real South- West) sub-district of the SP-ECR/D (El Camino Real/Downtown Specific Plan) zoning district at a total bonus level FAR (floor area ratio) of 2.50, with a maximum above grade FAR of 1.50, and other associated amendments; 3. Architectural Control for compliance with Specific Plan standards and guidelines for a commercial development consisting of a live entertainment venue on an approximately 4,752-square foot site; 4. A Use Permit to allow small scale commercial recreation and a bar; and, 5. Below Market Rate (BMR) Housing Agreement for compliance with the City’s Below Market Rate Housing Program. Policy Issues The proposed project requires the Planning Commission and City Council to consider the merits of the project, including project consistency with the El Camino Real/Downtown Specific Plan. The Planning Commission and Council will need to consider Specific Plan and Zoning Ordinance Amendment, Architectural Control and Use Permit findings. Further, a resolution regarding the BMR Housing Agreement for the project will need to be considered. The Planning Commission is a recommending body on these policy issues. The policy issues summarized here are discussed in greater detail throughout the staff report. Background Site location and uses The project site consists of an approximately 4,752-square foot parcel situated on the west side of El Camino Real, between Menlo Avenue and Live Oak Avenue, at 949 El Camino Real. The project site is City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org Staff Report #: 18-040-PC Page 2 within the El Camino Real/Downtown Specific Plan’s (Specific Plan) El Camino Real South-West (ECR SW) district and has a land use designation of El Camino Real Mixed-Use Residential. The district encourages residential uses in close proximity to the train station area while also allowing for a variety of commercial uses and permits building heights ranging typically from 2-4 stories, with some building heights only permitted through the provision of public benefits. Uses permitted by right include cinemas, full/limited service restaurants, hotels, general personal services, general retail sales and food and beverage sales. Conditional uses permitted only through a use permit subject to Planning Commission review include small- scale commercial recreation, bars/lounges, restricted personal services and liquor stores. Finally, uses permitted administratively with the approval of the Community Development Director include restaurants with alcohol and/or outdoor seating and restaurants with live entertainment. The project site currently consists of a movie theater. Neighborhood context Using El Camino Real in a north to south orientation, the surrounding parcels are also in SP-ECR/D zoning district and are developed with retail uses to the north and south. A parking lot, which is not part of the subject property, is located to the west (rear) of the property, and the parcel to the east of the subject parcel, across El Camino Real, is development with office uses. A location map is included as Attachment F. Previous project review On February 13, 2018 the City Council held a study session on the proposal, after previously identifying the project as a top City Council Work Plan priority at their January 29, 2018 meeting. Given the priority status placed on the project and the applicant’s expedited timeline to purchase the property, the February 13th study session served as the initial public study session referenced on page E17 of the Specific Plan. The City Council members were unanimous in their support of the project, and directed Staff to prepare the necessary Specific Plan and Zoning Ordinance amendments and work with the applicant to better define the proposed public benefit. Several members of the public spoke at the Study Session and all expressed support for the project. Analysis Project description The applicant (Peninsula Arts Guild or P.A.G.) is proposing to renovate the existing Guild Theatre cinema facility into a live entertainment venue. Through the construction and addition of a finished basement and a new second floor, the building floor area would increase from approximately 4,200 square feet to approximately 10,854 square feet, resulting in a floor area ratio (FAR) of approximately 2.3. The ECR SW district currently permits a base level FAR of 1.1 and bonus level FAR of 1.5. The proposed Specific Plan amendments would allow a bonus level FAR up to 2.5 for a feature building north of Live Oak Avenue, in the ECR SW sub-district, that proposes a live entertainment/cinema use at the public benefit level that will increase vibrancy in the area, substantially retains the existing walls or rebuilds new walls in substantially the same location and configuration, and that has highly visible and memorable features that have historic or cultural value. This amendment to the permitted FAR would limit the above grade FAR to 1.5, and the City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org Staff Report #: 18-040-PC Page 3 basement square footage to within the footprint of the existing building, but not over the property lines, and not accessible to the public (back of house uses only, such as storage and mechanical spaces). The amendment would also limit the additional square footage beyond that in existence at the time the El Camino Real/Downtown Specific Plan was approved, to a maximum of 10,000 additional square feet. The first floor would contain a lobby, a main viewing and seating area, bar, stage and restrooms. The facility’s second floor would also provide viewing areas, a small bar, office and a vestibule. The basement would not be open to the public and would be utilized primarily as performer gathering and dressing room space as well as a warming kitchen, storage and mechanical rooms. The facility is proposed to typically only be operated for one to three events per week, usually on weekend (Friday, Saturday and Sunday) evenings with live performances lasting within a 7pm to 11pm window and for a typical event length of two hours. The venue would employ approximately 20 people in a mix of full- time and contractor positions. The facility would include the on-site sale of alcohol. As a public benefit, the Applicant is proposing the facility be available for community uses that may include the following: City special events, movie showings and festivals, local school events such as plays and concerts, author talks and events, as well as local church events. The applicant provided a letter, attached hereto as Attachment H, describing the proposed public benefit. The public benefit would be twice monthly discounted community events or up to 24 events per year at a 50 percent discount. The applicant has indicated that for an event which would cost PAG approximately $2,000 to host, the community organization would only be charged $1,000 or 50 percent of the cost and this could result in an approximately $24,000 per year public benefit. Design and Site Layout Building Materials The exterior finish is proposed to be cement plaster, painted in a blue/purple color. A new aluminum and glass storefront is proposed, including windows above the marquee. A 7-foot metal roof screen is proposed on the roof to screen mechanical equipment. The following discussion highlights and expands on topics addressed in the Standards and Guidelines Project Compliance Worksheet (Attachment J ). Setbacks The existing theater building is located slightly beyond the existing front property line, within the Caltrans right-of-way. It is also located slightly over the property line along the right side. Parcels located north of Live Oak Avenue, the ECR SW sub-district are required to have a minimum 5-foot front setback, a 10-foot rear setback, and a 5-foot interior side setback for upper floors with no required interior side setback for the ground floor. The proposed second story addition to the existing theater building would be set at, or very close to, the front, rear, and right-side setbacks, and at the alley on the left side. The proposed amendments to the Specific Plan would allow a feature building north of Live Oak Avenue that proposes a live entertainment/cinema use at the public benefit level that will increase vibrancy in the area, substantially retains the existing walls or rebuilds new walls in substantially the same location and configuration, and has City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org Staff Report #: 18-040-PC Page 4 highly visible and memorable features that have historic or cultural value to retain existing setbacks not to exceed property lines.