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HomeMy WebLinkAbout2016-06-01; Planning Commission; MinutesPlanning Commission Minutes Minutes of: Time of Meeting: Date of M1~eting: Place of Meeting: CALL TO ORDER June 1, 2016 PLANNING COMMISSION 6:00p.m. June 1, 2016 COUNCIL CHAMBERS Chairperson Anderson called the meeting to order at 6:00 p.m. PLEDGE OF ALLEGIANCE Commissioner Montgomery led the Pledge of Allegiance. ROLL CALL Page 1 Present: Chairperson Anderson, Commissioners Black, Goyarts, L'Heureux, Montgomery, and Siekmann Absent: Commissioner Segall STAFF PRESENT Don Neu, City Planner Ron Kemp, Assistant City Attorney Tammy McMinn, Administrative Secretary Christer Westman, Senior Planner Jason Goff, Associate Planner Jason Geldert, Engineering Manager APPROVAL OF MINUTES Chairperson Anderson asked if there were any corrections or revisions to the minutes of the meeting of March 16, 2016. Chairperson Anderson stated proposed changes to the minutes. MOTION ACTION: VOTE: AYES: NOES: ABSENT: Motion by Commissioner L'Heureux and duly seconded by Commissioner Siekmann to approvE:! the minutes of the Regular Meeting of March 16, 2016, as amended 6-0-1 Chairperson Anderson, Commissioner Black, Commission Goyarts, Commissioner L'Heureux, Commissioner Montgomery and Commissioner Siekmann None Commissioner Segall ABSTAIN: None Planning Commission Minutes June 1, 2016 Page 2 Chairperson Anderson asked if there were any corrections or revisions to the minutes of the meeting of April 13,2016. . MOTION ACTION: Motion by Commissioner L'Heureux and duly seconded by Commissioner Siekmann to approve the minutes of the Regular Meeting of April 13, 2016. VOTE: 6-0-1 AYES: Chairperson Anderson, Commissioner Black, Commission Goyarts, Commissioner L'Heureux, Commissioner Montgomery and Commissioner Siekmann NOES: None ABSENT: Commissioner Segall ABSTAIN: None Chairperson Anderson asked if there were any corrections or revisions to the minutes of the meeting of April 20, 2016. MOTION ACTION: Motion by Commissioner L'Heureux and duly seconded by Commissioner Siekmann to approve the minutes of the Regular Meeting of April 20, 2016. VOTE: 5-0-2 AYES: Chairperson Anderson, Commissioner Black, Commission Goyarts, Commissioner L'Heureux and Commissioner Siekmann NOES: None ABSENT: Commissioner Segall ABSTAIN: Commissioner Montgomery Chairperson Anderson asked if there were any corrections or revisions to the minutes of the meeting of May 4, 2016. MOTION ACTION: Motion by Commissioner L'Heureux and duly seconded by Commissioner Siekmann to approVE3 the minutes of the Regular Meeting of May 4, 2016. VOTE: 6-0-1 AYES: Chairperson Anderson, Commissioner Black, Commission Goyarts, Commissioner L'Heureux, Commissioner Montgomery and Commissioner Siekmann NOES: None ABSENT: Commissioner Segall ABSTAIN: None Planning Commission Minutes June 1, 2016 Page 3 PUBLIC COMMENTS ON ITEMS NOT LISTED ON THE AGENDA Chairperson Anderson asked if anyone in the audience wished to speak to an item not on the agenda. Seeing none she asked Mr. Neu to introduce the first item. PLANNING COMMISSION PUBLIC HEARING Chairperson Anderson asked llllr. Neu to introduce the first item and opened the public hearing on Agenda Item 1. 1. COP 16-08 -HOENIG RESIDENCE -Request for approval of a Coastal Development Permit to allow for the construction of a 2,299 square foot single family residence within the Mello II Segment of the City's Coastal Zone located at 1075 Chinquapin Avenue within Local Facilities Management Zone 1. The project site is not within the appealable area of the California Coastal Commission. 2. COP 15-52-SCHMALTZ RESIDENCE-Request for approval of a Coastal Development Permit to allow for the construction of a 2,929 square foot single family residence with attached two-car garage on a 0.11 acre lot located at 6468 Franciscan Road within the Mello II Segment of the city's Coastal Zone and within Local Facilities Management Zone 22. The project site is within the appealable area of the California Coastal Commission. Mr. Neu stated Agenda Items 1 and 2 would normally be heard in a public hearing context; however, the projects appear to be minor and routine in nature with no outstanding issues and Staff recommends approval. He recommended lthat the public hearing be opened and closed, and that the Commission proceed with a vote as a consent item. Staff would be available to respond to questions if the Commission or someone from the public wi~;hed to comment on Agenda Items 1 or 2. Chairperson Anderson asked if any member of the audience wished to address Agenda Item 1 or 2. Seeing none, she opened and closed public testimony. MOTION ACTION: Motion by Commissioner L'Heureux and duly seconded by Commissioner Siekmann that the Planning Commission adopt Planning Commission Resolution No. 7169 approving Coastal Development Permit CDP 16-08 based upon the findings and subject to the conditions contained therein, as amended. VOTE: 6-0-1 AYES: Chairperson Anderson, Commissioner Black, Commissioner Goyarts, Commissioner L'Heureux, Commissioner Montgomery and Commissioner Siekmann NOES: None ABSENT: Commissioner Segall ABSTAIN: None Planning Commission Minutes June 1, 2016 Page4 MOTION ACTION: Motion by Commissioner L'Heureux and duly !)econded by Commissioner Siekmann that the Planning Commission adopt Planning Commission Resolution No. 7172 approving Coastal Development Permit COP 15-52 based upon the findings and subject to the conditions contained therein. VOTE: 6-0-1 AYES: Chairperson Anderson, Commissioner Black, Commissioner Goyarts, Commissioner L'Heureux, Commissioner Montgomery and Commissioner Siekmann NOES: None ABSENT: Commissioner Segall ABSTAIN: None Chairperson Anderson closed the public hearing on Items 1 and 2. Chairperson Anderson asked Mr. Neu to introduce the next item and opened the public hearing on Agenda Item 3. 3. COP 15-45-ABDI RESIDENCE-Request for approval of a Coastal Development Permit to allow for the demolition of a 4,200 square foot two-story single-family residence and the construction olf a 5,487 square foot two-story single-family residence with a 2,564 square foot habitable basement within the Mello II Segment of the City's Coastal Zone located at 5263 Shore Drive within Local Facilities Management Zone 3. The project site is within the appealable area of the California Coastal Commission. Mr. Neu stated that staff is recommending that Agenda Item 3 be continued to a date certain of July 6, 2016. CommissionE;:!r Siekmann stated that she needed to recuse herself as she lived in the neighborhood of this project. Commissioner Montgomery also recused himself. MOTION ACTION: Motion by Commissioner L'Heureux and duly seconded by Commissioner Goyarts that the Planning Commission continue Agenda Item No. 3 to the meeting of July 6, 2016. VOTE: 6-0-3 AYES: NOES: ABSENT: Chairperson Anderson, Commissioner Black, Commissioner Goyarts, and Commissioner L'Heureux None Commissioner Segall ABSTAIN: Commissioner Siekmann and Commission Montgomery Chairperson Anderson closed tl1e public hearing on Item 3. Chairperson Anderson asked Mr. Neu to introduce the next item and opened the public hearing on Agenda Item 4. 4. SP 181(H)ICUP 15-06-HOME2 CARLSBAD SUITES-Request for a recommendation of approval for a Specific Plan Amendment and Conditional Use Permit to allow a 142- room business hotel on a 3.8 acre previously graded infill site generally located north of Palomar Airport Road, south of Wright Place and east of Palomar Oaks Way on Lot 12 of the Carlsbad Airport Centre Specific Plan in Local Facilities Management Zone 5. Planning Commission Minutes June 1, 2016 Page 5 Mr. Neu introduced Agenda Item 4 and stated Associate Planner Jason Goff would make the staff presentation. Mr. Goff gave a brief presentation and stated he would be available to answer any questions. Chairperson Anderson asked if there were any questions of staff. Commissioner Siekmann asked Mr. Goff to discuss the parking for the record. Mr. Goff stated that the parking was reduced from 1.2 spaces per room to 1.1 spaces per room and approved by the City Planner along with a parking study. The study analyzed two hotels down the street at Palomar and Yarrow. The parking ratio fell below one space per room and is consistent with other hotel parking reductions. Commissioner Siekmann askeld Mr. Goff if the Fairfield Hotel across the street has that same reduction. Mr. Goff replied yes. Commission Montgomery asked Mr. Neu if it's time to revisit hotel parking requirements. Mr. Neu stated that we will look at all parking rates for all land uses in the zoning ordinance update. We may end up with some type of variation dependiing on the type of hotel. Chairperson Anderson asked if this hotel had conference rooms. Mr. Neu stated that it had a small conference room of about 400 sq. ft. Referring to the hotel parking study, Chairperson Anderson asked about the hotel occupancy rate being 98%. Mr. Goff stated that the highest rate was 99%. Chairperson Anderson asked how the employees are accommodated. Mr. Goff stated that the calculations accounted for employees as well. Chairperson Anderson asked if there were any other questions of staff. Seeing none, she asked if the applicant would like to make a presentation. Ryong Cho from Royal Hospitality Carlsbad LLC, 6560 Pogo Lago, PO Box 3872, Rancho Santa Fe, CA 92067. He thanked the Planning Commission and staff for the ability to present their proposal. He stated that they are in agreement with all of the conditions of approval. He believes the hotel will make an excellent addition to the market and economy in Carlsbad, and his team is here tonight to address any concerns that the Planning Commission might have. Chairperson Anderson asked if there were any further questions of the applicant. Seeing none, she asked if any person in the audience wished to speak on the item. Steve Hopkins, 5835 Owens Ave., Carlsbad, thanked the Commission for their time and would like to ask the Commission to reject this application. In the last year there were 125,000 room nights added to the market. He dropped off paperwork earlier and mentioned that the hotels in the market are dropping occupancy rates. Businesses are leaving California. Chairperson Anderson asked Mr. Hopkins to explain the table at the back of his handout. He explained that it was the Star report which hotels use to gage market conditions. He stated that the market was down the current month 5.4% and year to date 2.7%. Commissioner Siekmann asked if he is involved in the industry. Mr. Hopkins said that he is involved in hotel consulting and lives in Carlsbad. He has seen other markets that boom and then the market drops, the hotel goes bankrupt, peoplel are left without jobs and the city has empty hotels. Commissioner Montgomery asked if the percentage change segment on the table was changing from the beginning of year until now, or comparing it to the same month last year. Mr. Hopkins stated it was same month last year. Chairperson Anderson asked if there were any other questions for Mr. Hopkins. Seeing none she asked if anyone else would like to speak on this item. The applicant asked to speak. Mark Kallenberger, 245 Fisher Ave., Costa Mesa 92626, stated they prepared the market study for this project and found that occupancy is near 82%. The occupancy may drop to 75% with the new hotels. You will have hotel development with an 82% occupancy rate and there is more demand than supply. Things are good in California, unemployment is down, hotel occupancy is good, and vacancy rates for office and Planning Commission Minutes June 1, 2016 Page6 industrial are down. The tourism in California is booming with visitors from Asia. Most of the theme parks are building expansions, including LegoLand and Disneyland, in this favorable market. The myth of businesses moving out of California is false. He stated that there is no danger of one project like this causing an economic collapse. Chairperson Anderson asked if the 1 ,200 hotels in San Diego would have an impact. Mr. Kallenberger stated that the hotel rate in San Diego is 78%. Chairperson Anderson asked if California residents are more likely to travel within the state than in the past. Mr. Kallenberger said yes and that the Central Coast is seeing a lot of travel. Chairperson Anderson asked if people are less inclined to travel overseas. Mr. Kallenberger stated that people are taking weekend trips and 'staycations.' Commissioner Montgomery stated that Carlsbad possessed 50% of the office space in all of North County. He asked if that is a main driver for a hotel like this. Mr. Kallenberger stated that Home2 Suites is designed for corporate travelers mid-week and leisure travelers on the weekend. If you have a hotel that maintains that balance it will have higher occupancy rates. Commissioner L'Heureux asked about reaching the tipping point and cannibalizing existing hotels and how long will it be before we have too many. Mr. Kallenberger stated that it has become difficult to get hotels developed and organized, timelines get pushed out and demand keeps growing and stays ahead of the supply. Commissioner L'Heureux stated that a lot of it depends on financing and ebbs and flows. Mr. Kallenberger stated that durin9 the recession financing was difficult and very few hotels were built so the industry is catching up. Chairperson Anderson stated that when the office space is built out and you still have undeveloped hotels, then you will end up with an over-production of hotel rooms. Mr. Kallenberger stated that if there is demand, the industrial space is redeveloped as office space. Carlsbad is an attractive destination for offices. Commissioner Siekmann commented that we are talking a lot about finances and we're here to talk about land use and the Commission is getting off the point. Commissioner Black asked how Carlsbad is faring relative to the other coastal San Diego and Orange County cities. Mr. Kallenbergelr said that county-wide the occupancy is 76% with the state of California being 75%. Commissioner Black stated that we're doing better than the average and the projections for the near future would maintain that average or better. Mr. Kallenberger stated yes and with the case of Carlsbad being at 82% it's very attractive. Commissioner Black commented that there seems to be a debate between your company and the public speaker Mr. Hopkins. Mr. Kallenberger stated that he didn't know what sample hotels were used for his data, and that what often happens is that weather and hotel renovations can be a factor. Commissioner Black asked if he could call Mr. Hopkins to the podium again for his response. Mr. Kemp stated that since public testimony has not been closed he is permitted. Mr. Hopkins stated that the 1 ,200 hotel number he mentioned weren't hotels, but rooms in Carlsbad. He said that Mr. Kallenberger's numbers would be skewed if his report was before the newer hotels were open. Commissioner Montgomery stated he has gone over the market study extensively, it actually reflects those specific hotels coming online with the projected reduction. Mr. Hopkins stated that he didn't see the study and it was just his personal opinion and that he's afraid the tipping point is approaching. Chairperson Anderson asked if there were any other questions for Mr. Hopkins. Seeing none she asked if there were any other comments from the applicant. Koong Cho, Royal Hospitality Carlsbad, said that regarding Mr. Hopkins' comment, he wants to point out that as a developer it will be more than a $20M investment, and we have to look at many different angles and what makes sense. He stated that similar hotels show 82.7 percent occupancy in April and year to date is 84.7% occupancy, with year to date at is 88.8% occupancy. Carlsbad's market is unique. Home2 Suites is a mid-scale extended stay hotel. Carlsbad has many different levels of hotel from resort level to limited service. Home 2 Suites is a mid-tier extended stay which Carlsbad does not have. He stated that there is enough demand to build this 140 room hotel and Carlsbad has a very good reputation making people want to stay here than in other surrounding cities. Planning Commission Minutes June 1, 2016 Page 7 Chairperson Anderson thanked Mr. Cho and asked if there were any other questions for the applicant. Seeing none she asked if there was anyone else in the audience who wished to speak. Seeing none she closed the public testimony and opened Commission discussion. DISCUSSION Commissioner Montgomery bedieves the developers made a good case for approval of the project. He has no issues to the amended parking requirements and can support the Area 2 vs the Area 1 designation. He isn't a fan of the architecture lbut understands that it resides in an Industrial area. He stated that he did delve into the market study, and also thinks Mr Goff did a very good job on the staff report. He can approve the project. Commissioner Black occurs with Commissioner Montgomery. He stated that it's a very good addition to Carlsbad's hospitality market and learned about the trends and can approve the project. Commissioner Goyarts read tile study, and when he thinks of planning for the future he thinks it's much needed. He can support the project. Commission Siekmann believes the project meets all the findings and that Mr. Goff did an excellent job. She can support the project. Commissioner L'Heureux appreciates the market analysis as backup to give them the confidence level. He would like to see continued economic analysis in the future. He stated that we are blessed to have a very diverse financial base which helped us through the recession. He can approve the project. Chairperson Anderson agrees with her fellow commissioners. She appreciated the study that was provided which was very informative. She believes that area can support more hotels and she can support the project. ACTION: Motion by Commissioner L'Heureux and duly seconded by Commissioner Siekmann that the Planning Commission adopt Planning Commission Resolutions No. 7170 and 717'1 recommending approval of Specific Plan Amendment SP 181 (H) and Conditional Use Permit CUP 15-06, based on the findings and subject to the conditions contained therein. VOTE: 6-0-1 AYES: Chairperson Anderson, Commissioner Black, Commissioner Goyarts, Commissioner L'Heureux, Commissioner Montgomery and Commissioner Siekmann NOES: None ABSENT: Commissioner Segall ABSTAIN: None · Chairperson Anderson closed lthe public hearing on Agenda Item 4. COMMISSION COMMENTS Chairperson Anderson asked Mr. Neu about the future Planning Commission schedule. CITY PLANNER COMMENTS Mr. Neu stated that the next meeting will be July 6. An EIR has been given to you for Uptown Bressi for that meeting. He stated that we haven't had anything before the Council recently. Commissioner Montgomery asked when the local coastal program update is planned. Mr. Neu commented that we are at least one year from public hearings. He stated that we had the Sea Level Rise workshop last week so the next step is to start on adaptation strategies and that starts wrapping into the Coastal Plan and then tied into the Zoning Code. Commissioner Montgomery asked if we comment on any part of that before it comes. Mr. Neu stated that yes we would be back before you with drafts of the different work items. He also stated that you will also be getting some interim product of the Village Parking Study in the fall. Planning Commission Minutes June 1, 2016 Page 8 CITY ATTORNEY COMMENTS None. ADJOURNMENT By proper motion, the Regular Meeting of the Planning Commission of June 1, 2016 was adjourned at 7:13 p.m. DON NEU City Planner Tammy McMinn Minutes Clerk