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CONSIDERATION OF APPROVING THE DESIGN REVIEW APPLICATION DR16-0009 FOR THE MILLENIA OFFICE PROJECT BY LMC-MILLENIA INVESTMENT COMPANY, L.P. (CHESNUT PROPERTIES) AND ASSOCIATED STREET ENCROACHMENT MAINTENANCE AGREEMENT
A. RESOLUTION NO. 2017-011 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A DESIGN REVIEW PERMIT (DR16-0009) TO CONSTRUCT TWO OFFICE BUILDINGS TOTALING 318,000 SQUARE FEET, A 6,100 SQUARE FOOT SINGLE STORY AMENITY BUILDING AND A TOTAL OF 1,373 PARKING SPACES ON A 7.06-ACRE SITE WITHIN THE MILLENIA MASTER PLANNED COMMUNITY
B. RESOLUTION NO. 2017-012 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE GRANT OF AN ENCROACHMENT PERMIT (PE1006) TO ALLOW THE CONSTRUCTION AND MAINTENANCE OF A BUILDING OVERHANG 29 FEET ABOVE STREET LEVEL ENCROACHING FOUR FEET WITHIN THE CITY RIGHT OF WAY OF MONTAGE AVENUE, AND AN ENCROACHMENT MAINTENANCE AGREEMENT THEREFOR
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RECOMMENDED ACTION
Recommended Action
Council conduct the public hearing, and adopt the resolutions.
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SUMMARY
In accordance with the Millenia/Eastern Urban Center (EUC) Sectional Planning Area (SPA) Plan, LMC-Millenia Investment Company, L.P. (Chesnut Properties) is proposing to construct two office buildings totaling 318,000 square feet plus a 6,100 square foot amenity building on a 7.06 acre parcel (Lot 7 of Final Map 16081) in the Millenia Master Planned Community. The project also proposes a six-level parking structure with 1,302 parking spaces plus a 71-space surface parking lot. The project site is located within the Mixed Use Civic/Office District (District 5) of the Millenia Master Planned Community.
In addition to the Design Review Permit (DR) the Project requires an Encroachment Permit (PE10006) and an Encroachment Maintenance Agreement to allow the construction and maintenance of a second story deck, 72’-6” long and 29’ above ground, which overhangs four feet into the City right-of-way along Montage Avenue north of Optima Street. The project is subject to the consolidated permit processing provisions pursuant to Chula Vista Municipal Code (CVMC) Section 19.14.050.C. Under the consolidated review process, the City Council is reviewing and acting on the Design Review and the Encroachment Maintenance Agreement.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed project was adequately covered in previously adopted Final Second Tier Environmental Impact Report (EIR-07-01); thus, no further environmental review is required.
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Environmental Determination
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed project was adequately covered in previously adopted Final Second Tier Environmental Impact Report (EIR-07-01); thus, no further environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The adopted SPA Plan, approved on September 15, 2009, establishes the vision for Millenia, and defines the land use character and mix, design criteria, transportation system, and public infrastructure requirements for the project. The SPA Plan proposes a flexible regulatory framework that provides for a variety of possible land use scenarios for each district and is intended to allow the project to respond to market cycles.
Millenia is divided into 10 Community Districts, and the SPA contains a Table of Requirements for each district that identifies the dominant land use, number of dwelling units, non-residential square footage permitted (office and retail), building setbacks, and other requirements and development standards.
The Applicant proposes to construct a Class-A office complex on Lot 7 of Final Map 16081, which is a 7.06-acre project site within District 5 of Millenia. This lot is bordered on the north by the planned fire station site, on the south by the planned P-2 Park (Civic Park), on the east by Montage Avenue and planned mixed-use development in the Main Street District and on the west by Millenia Avenue and planned office development in the Business District (Locator Map, Attachment 1).
The site is currently vacant and has been finish-graded, including the excavation for the proposed parking structure, by the Master Developer, SLF IV - Millenia, LLC.
Compliance with the EUC Form Based Code
The following Project data shows the development regulations along with the Applicant’s proposal to meet said requirements:
Assessor’s Parcel Number: 643-060-57
Current Zoning: District 5
General Plan Designation: EUC
Lot Area: 7.06 acres
Parking Required: 1,003 spaces
Parking Proposed: 1,373 spaces
Excess Parking: 370 spaces
Setbacks required:
• 0-5 feet along Millenia Avenue, Montage Avenue, and the Fire Station Site.
• 0 setback along the Park P-2 site.
Setbacks proposed:
• The building 1 setbacks from Millenia Avenue vary from 28’-0” to 34’-6” from the property line for the first floor area. The building overhang on floors 4 and 5 come within 3’ to 12’ of the property line due to the curvature of Millenia Avenue. This is a permitted setback exception in the Millenia SPA plan Section 03.11.003 (b).
• The building 2 setback from Montage Avenue is 5’ for the first floor area. The building overhang on the second floor encroaches 4’ into the City right-of-way. Per Chula Vista Municipal Code Chapter 12.28 (Encroachments), an Encroachment Permit and an Encroachment Maintenance Agreement (Attachment 2) are required.
• No buildings are located along the fire station frontage.
• Building setbacks from Park P-2 range from 5’-6” to approximately 15’. The zero setback from the park site is not possible for the buildings given grade differences between the two sites. In addition, the bottom “basement” floor on building 1 needs to provide a building entry close to street level along Millenia Avenue. The setback also varies along the park site as the buildings are in a straight line while the park property is narrower at Millenia Avenue than it is on Montage Avenue.
Building Height required:
• MH5-minimum average building height of 5 stories or 70’ high minimum, and a building height range of 2-12 stories.
Building Height proposed:
• All buildings are either 5 stories or 70’ in total building height.
The EUC FBC identifies Dominant Land Use categories for each of its Districts. The dominant land use for District 5 is Mixed Use/Civic. Sections 02.01.000 (Attachment 3, EUC FBC, pages II-14 - II-19) describe overall site planning, architectural and landscaping principles that ensure projects within this District utilize design strategies that will:
02.03.003 Overall Guidelines
a. Orient buildings to define public space, providing civic, cultural, and other active, pedestrian-oriented uses that front on the main plaza.
b. Introduce a high standard of design that reflects this district’s prominent address, including the presence of iconic architecture.
c. Emphasize quality construction; stress the use of durable materials that exhibit permanence and quality.
d. Allow flexibility to accommodate phased development that facilitates future “urban intensification” of the district.
e. Encourage a “permeable” edge condition for uses fronting the plaza to create an outdoor extension of the indoor space and use.
02.03.004 Site Planning
a. Orient buildings to define public realm, especially the main plaza.
b. Site buildings to screen parking structures from the Civic plaza and Street “B” (Montage Avenue).
c. Encourage shared parking throughout the Civic and office districts.
02.03.005 Architecture
a. Introduce a high standard of design that distinguishes the district’s prominent address at the “heart of the EUC”.
b. Exploit corner sites with special architectural treatments and address-giving features.
c. The library should incorporate a highly transparent façade oriented to the Civic Plaza and Street “B” (Montage Avenue) to allow views into and from the library. The use of the plaza as an outdoor extension of the library shall be encouraged.
02.03.006 Landscape
a. Complement the main civic plaza that will accommodate a variety of the community events and programs.
b. Introduce canopy trees and outdoor amenities with public outdoor spaces.
Outlined below is a discussion as to how the proposed project conforms to the development standards and applicable guidelines.
Site Planning
The proposed Millenia office, referred to as the Think Campus, is the first of three campuses to be developed. The other two office campuses envisioned to be developed in the future, Discover and Invent, are planned to be on Lots 1 and 19 of Final Map 16081, between Millenia Avenue and SR-125.
The proposed Think Campus includes two office buildings totaling 318,000 square feet, and a six-level parking garage all sited to define public spaces at the center of the site. Pedestrians will be able to access the site via a series of walkways, patios, and gathering spaces in a park-like environment connecting to Millenia Avenue, Montage Avenue and the future Civic Park. A pedestrian bridge links the three buildings at the third and fourth levels creating a larger horizontal office space to provide an opportunity for a single tenant to occupy 75,000 square feet of contiguous floor plate (Attachment 4, Project Plans, Architectural Section, pages A0.SP1 and A10.01 through A10.07)
The heart of the campus is composed of a courtyard setting with a 6,100 square foot amenity pavilion housing a fitness center and restaurant for tenant and public use. The building design encourages connection to the outdoors through ample patio seating for dining and outdoor exercise zones (Attachment 4, Project Plans, Landscape Section, pages L.3A through L.3C).
Vehicular access to the parking structure is via two private driveways from Millenia Avenue and Montage Avenue, and access to the surface parking lot is via a private driveway to be shared with the future Fire Station to the north.
The Applicant is also proposing a future 3-story building, which would provide an additional 85,000 square feet of leasable space. If the Applicant decides to move forward with the design of this building, he is required to obtain a separate Design Review Permit to be approved by the Planning Commission.
Architecture
The buildings design features a contemporary, high-quality office architecture (Attachment 4, Project Plans, Architectural elevations pages G0.02 through G0.02.5). Building exteriors are expressed as multiple planes rather than a single surface, and recessed and overhanging elements are used to break up the vertical planes of the building.
The building materials focus on the strong use of glass, with various degrees of glazing to create different colors and degrees of reflectivity, along with the use of vertical columns with metal screens as a complimentary material. Outdoor decks and seating areas, along with a third story pedestrian bridge linking the two buildings will provide amenity space, as well as visual interest.
The amenity building will have the same contemporary design and will feature the same materials as the larger office buildings.
The parking structure will be concrete construction and open on the north and south sides. The eastern and western sides of the structure, which front on Montage and Millenia Avenues respectively, will feature the use of decorative metal screens to soften the view into the structure along those street frontages.
Iconic building elements are located at three locations: Two locations showing corner elements of Building 2 along Montage Avenue (see Iconic View #1 and #3, Attachment 4, Project Plans page G0.02) as well as one location for Building 1 located along Millenia Avenue (see Iconic View #2). Both iconic view #3 (along Montage Avenue) and iconic View #2 (along Millenia Avenue) provide iconic features by way of large 24-foot cantilevered upper portions of the building over outdoor walkable areas.
The lower portion of Building 1 includes one type of glazing intermixed with white vertical metal panels and linear fritted glass depicting a change of movement around the building’s façade. The upper portion of the building contains a different type and color of glazing material allowing a clean depiction of its overall massing and identity. The upper portion also includes outdoor deck areas visually identified by dark metal panel frames and large multi-slide doors.
Iconic view #1 (which depicts the southeast corner of Building 2) shows the lower portion of the building similar to the glass pattern of the lower portion of Building 1. However, for the corner element, instead of the upper portion of the building projecting out, it is instead recessed in order to provide a large upper floor outdoor deck area. This area is fully walkable with places to sit and enjoy the outdoors.
Landscape Design
The landscape design proposes to use a regional planting palette to ensure successful plant growth while complementing the buildings architecture. The irrigation system is water efficient and will ensure the project is sustainable and meets current water efficiency guidelines.
Section 02.03.006 of the SPA Plan requires that the Project’s landscape design complements the future Civic Park P-2, which is defined as “main civic plaza” in the SPA Plan discussion of District 5. A goal during the Project’s review was to create a “permeable” edge between the park and the office development. The concerns stemmed from the significant grade differences between the office project and the park site (ranging from approximately 5 feet above the park along Building 2 to approximately 10 feet below the park along a portion of Building 1), as well as the fact that the Applicant is proposing to provide Fire Department emergency vehicle access on the park site to serve the proposed office project. As a result, the Applicant prepared a preliminary conceptual plan for the park to ensure that the edge condition of the office project would blend with the park and that required design goals of the park could still be achieved (See Attachment 5, Conceptual Studies).
The preliminary conceptual design creates a permeable edge between the two sites and proposes an amphitheater with depressed seating area and stairs, which links the park site to the Project and addresses the grade differences between the two sites. The landscape concept for the Park will utilize many of the plant materials found on the office project and elements to ensure design continuity. The emergency vehicle access / fire lane on the park site will be designed with a product to meet the Fire Departments’ specifications while also being usable as park space. While not a part of this application, the preliminary conceptual plan prepared by the Applicant will be used by the Master Developer as the basis to develop a Park’s Master Plan for the Civic Park.
Per the adopted Millenia Parks Agreement, the submittal of the Civic Park Master Plan is required prior to issuance of a building permit for and occupancy of a building fronting on the park site within Lots 7 or 16. In addition, the Parks Agreement includes a provision that allows the City to consider changing the construction schedule if appropriate to improve the relationship of the Civic Park, with its surrounding community. The Applicant and Master Developer are working to ensure the Civic Park Master Plan is delivered within the thresholds stated in the Millenia Parks Agreement.
Parking
The parking structure is a 393,000 square foot, six-level structure with three of the six levels of parking below grade. The structure has been oriented length-wise in an east-west direction in the northern end of the site which minimizes the frontage of the structure along both Millenia Avenue and Montage Avenue. The structure will not be visible from the Civic Park site, except for a long-range view via minor view corridors between the two office buildings.
The Applicant has provided a parking study for the project to assess the compatibility with the adopted Millenia parking ratios, which are found in both the Millenia SPA Plan and within the Millenia Parking Management Plan. The parking study concludes that a total of 1,003 parking spaces would be required at peak weekday times for the two office buildings and the amenity building (including outdoor patio areas). A total of 1,373 spaces are provided on the proposed site plan, which results in a surplus of 370 spaces. Because the excess amount exceeds 10% of the required amount, a parking study was required and has been provided by the Applicant (Attachment 6).
As stated in the parking study, the additional spaces provided could either accommodate shared parking needs with other off-site uses and/or a future on-site office building up to 85,000 square-feet. Said on-site office building would require 284 spaces and the net amount of parking provided on-site would be 1,302 spaces. Further reducing the required parking by 18 spaces to accommodate a shared parking reduction would result in a total of 1,269 parking spaces that would be required to accommodate both the existing on-site office and amenity buildings and the future on-site office building. This would result in 33 excess spaces still available for shared-parking for nearby off-site uses.
Library site
The Millenia SPA Plan identifies the project site as the location for the planned City library in Millenia. The Applicant has the sole obligation to fulfill this requirement in accordance with the provisions of the Millenia Development Agreement. Staff and the Applicant will continue to discuss the City’s space needs and evaluate various funding options and structures to implement the library on this site.
Encroachment Permit and Agreement
Building 2 includes a second story deck, 72’-6” long and 29’ above ground. Said deck overhangs four feet into the City right-of-way along Montage Avenue. Pursuant to Chula Vista Municipal Code Sections 12.28.020 and 12.28.050, a Council approved Encroachment Permit and an Encroachment Maintenance Agreement are required (Attachment 2).
Conclusion
The proposed office use on Lot 7 is a permitted land use in District 5 of the Millenia SPA Plan. The proposal complies with the policies, guidelines and design standards for the Millenia SPA Plan. Therefore, staff recommends the City Council approve Design Review Permit, DR16-0009 subject to the conditions listed in the attached Resolution, and the associated Encroachment Permit (PE1006) and Encroachment Maintenance Agreement.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community.
The Millenia Office project will be a thriving and safe destination with strong connections to the surrounding communities thus enabling a healthy, strong and secure community.
CURRENT YEAR FISCAL IMPACT
All application fees and processing costs are borne by the Applicant, resulting in no net impact to the General Fund or the Development Services Fund.
ONGOING FISCAL IMPACT
The proposed Project is consistent with the adopted Millenia SPA Plan. Approval of the proposed Design Review Permit supports the creation of more than 300,000 square feet of Class-A office space, expanding employment opportunities in the community and generating ongoing positive fiscal impacts as reflected in the previously considered Fiscal Impact Analysis for Millenia.
Approving an Encroachment Permit and associated agreement results in no net ongoing fiscal impact.
ATTACHMENTS
1. Locator Map
2. Encroachment Maintenance Agreement
3. EUC Form Based Code District 5
4. Millenia Office Project Plans
5. Civic Park Conceptual Studies
6. Millenia Office Parking Study
Staff Contact: Patricia Ferman, Project Manager