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CC - Item IV.CC-D - Infrastructure Development: Transit Village Planse-Opposestaf epor TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUN( FROM: FRANK G. TRIPEPI, CITY DATE: JULY 25, 2000 RE: AB 779 (TORLAKSON) - INFRASTRUCTURE DEVELOPMENT: TRANSIT VILLAGE PLANS - OPPOSE Attached for the City Council's review are copies of AB 779 (Torlakson), current bill status, complete bill history, Senate committee analysis, and letter from the League of California Cities requesting the City oppose AB 779. The proposed bill AB 779 requires a city or county to give a 25 percent density bonus and a 15 percent parking reduction to the developer of any residential or commercial project within one- quarter mile of a public transit station. In short, this bill proposes to override all local general plans and zoning within one-quarter mile of any existing or planned transit station in the state. This is a direct preemption of local land use authority and sets an extremely bad precedent. RECOMMENDATION: It is recommended that the City Council oppose AB 779. J U L 2 !5 2000 COMPLETE BILL HISTORY BILL NUMBER : A.B. No. 779 AUTHOR Torlakson TOPIC Infrastructure development TYPE OF BILL : transit village plans. Active Non-Urgency Non-Appropriations Majority Vote Required Non-State-Mandated Local Program Non-Fiscal Non-Tax-Levy BILL HISTORY 2000 July 5 From committee: Do pass, and re-refer to Com. on RLS. Re-referred. (Ayes 4. Noes 3.). June 27 From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L.GOV. June 15 From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L.GOV. May 2 Withdrawn from committee. Re-referred to Com. on L.GOV. Apr. 27 Withdrawn from committee. Re-referred to Com. on RLS. Apr. 24 From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on G.O. 1999 July 14 Withdrawn from committee. Re-referred to Com. on G.O. Joint Rule 61 (a)(9) suspended. July 12 Withdrawn from committee. Re-referred to Com. on RLS. July 8 From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L.GOV. June 17 Referred to Coms. on L.GOV. and TRANS. May 17 In Senate. Read first time. To Com. on RLS. for assignment. May 17 Read third time, passed, and to Senate. (Ayes 48. Noes 30. Page 1662.) May 3 Read second time. To third reading. Apr. 29 From committee: Do pass. (Ayes 5. Noes 3.) (April 28). Mar. 24 Referred to Com. on L. GOV. Feb. 25 From printer. May be heard in committee March 27. Feb. 24 Read first time. To print. CURRENT BILL STATUS MEASURE : A.B. No. 779 AUTHOR(S) Torlakson. TOPIC Infrastructure development: transit village plans. HOUSE LOCATION SEN +LAST AMENDED DATE 06/27/2000 TYPE OF BILL : Active Non-Urgency Non-Appropriations Majority Vote Required Non-State-Mandated Local Program Non-Fiscal Non-Tax Levy LAST HIST. ACT. DATE: 07/05/2000 LAST HIST. ACTION From committee: Do pass, and re-refer to Com. on RLS. Re-referred. (Ayes 4. Noes 3.). TITLE An act to amend Sections 65460, 65460.2, and 65460.4 of, and to add Section 65410.11 to, the Government Code, relating to infrastructure development. AMENDED IN SENATE JUNE 27, 2000 AMENDED IN SENATE JUNE 15. 2000 AMENDED IN SENATE APRIL 24, 2000 AMENDED IN SENATE JULY 8, 1999 CALIFORNIA LEGISLATURE-1999-2000 REGULAR SESSION ASSEMBLY BILL No. 779 Introduced by Assembly Member Torlakson February 24, 1999 An act to amend Sections 65460, 65460.2. and 65460.4 of, and it) fepeetl and add Seetion 65469.10 of, the Governfneitt Gade, to add Section 65410.11 to, the Government Code, relating to infrastructure development. LEGISLATIVE COUNSEL'S DIGEST AB 779, as amended, Torlakson. Infrastructure development: transit village plans. The Transit Village Development Planning Act of 1994 authorizes a city or county to prepare a transit village development plan that addresses, among other things, increased densities of residential development within not less than t/4 mile of a rail transit station and other land uses. including a retail district, as specified, and sites where a density bonus of at least 25% may be granted pursuant to specified performance standards. The act also authorizes a city, county, or city and county to require a developer to enter into a development agreement, as specified, to implement a 95 AB 779 -2- density bonus specified in the transit village plan and provides that no public works project, tentative subdivision map, or parcel map may be approved, nor zoning ordinance adopted or amended, within an area covered by a transit village plan unless the map, project, or ordinance is consistent with the adopted transit village plan. This bill would revise these provisions to apply to a public transit station, as defined, and would revise the density bonuses and any parking reduction available to project applicants for commercial, residential, or mixed commercial and residential uses within t/4 mile of a public transit station, as specified. The bill would authorize the city, county, or city and county to revise an applicant's calculations to conform to these requirements. The bill would also require that, where the California Environmental Quality Act (CEQA) applies to an applicant's proposal for a project, as specified, the environmental analysis shall not include reduced density or increased parking alternatives or recorrtmend reduced density or increased parking as a mitigation measure, unless it is necessary to reduce or avoid a specific, adverse, and significant impact on public health or safety. If compliance with CEQA is not otherwise required, the applicant's request for or the agency's granting of the density bonus or parking reduction would not make CEQA applicable and would not be interpreted to require a general plan amendment, rezone, or any other discretionary land use approval. The bill would also require the agency to grant the request unless it makes a specified finding based on substantial evidence in the record. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. Section 65460 of the Government Code 2 is amended to read: 3 65460. (a) This article shall be known and may be 4 cited as the Transit Village Development Planning Act of 5 1994. 95 -3- AB 779 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (b) As used in this article, the following definitions shall apply: (1) "Public transit station" means an existing rail station- or ferry dock or landing, or a planned rail station or ferry dock or landing for which construction funds are committed or programmed. (2) "Commercial" or "commercial uses" means office, retail. research and development, or public uses. SEC. 2. Section 65460.2 of the Government Code is amended to read: 65460.2. A city or county may prepare a transit village plan for a transit village development district that addresses the following characteristics: (a) A neighborhood centered around a transit station that is planned and designed so that residents; workers, shoppers, and others find it convenient and attractive to patronize transit. (b) A mix of housing types, including multiple dwelling units, within not more than a quarter mile of the exterior boundary of the parcel on which the transit station is located. (c) Other land uses, including a retail district oriented to the transit station and civic uses, including day care centers and libraries. (d) Pedestrian and bicycle access to the transit station, with attractively designed and landscaped pathways. (e) A public transit system that should encourage and facilitate intermodal service, and access by modes other than single occupant vehicles. (f) Demonstrable public benefits beyond the increase in transit usage, including all of the following: (1) Reduction of traffic congestion. (2) Improved air quality. (3) Increased transit revenue yields. (4) Increased stock of affordable housing. (5) Redevelopment of depressed and marginal inner-city neighborhoods. (6) Live-travel options for transit-needy groups. (7) Promotion of infill development and preservation of natural resources. 95 AB 779 -4 1 (8) Promotion of a safe, attractive, pedestrian-friendly 2 environment around transit stations. 3 (9) Reduction of the need for additional travel by 4 providing for the sale of goods and services at transit 5 stations. 6 (10) Promotion of job opportunities. 7 (11) Improved cost effectiveness through the use of 8 the existing infrastructure. 9 (12) Increased sales and property tax revenue. 10 (13) Reduction in energy consumption. 11 (g) Other_ provisions that may be necessary, based on 12 the report prepared pursuant to subdivision (b) of 13 Section 14045. 14 SEC. 3. Section 65460.4 of the Government Code is 15 amended to read: 16 65460.4. A transit village development district shall 17 include all land within not more than a quarter mile of the 18 exterior boundary of the parcel on which is located a 19 public transit station designated by the legislative body of 20 a city, county, or city and county that has jurisdiction over 21 the station area. 22 For purposes of this article, "district" means a transit 23 village development district as defined in this section. 24 25 repealed 26 5 qeptien 65460.10 is added to the Geveffimeiit 27 rode-ta- ead 28 SEC. 4. Section 65410.11 is added to the Government 29 Code, to read: 30 65460.10. 31 65410.11. (a) Regardless of whether a transit village 32 plan or a transit village development district is adopted 33 by a city, county, or city and county, applicants for 34 commercial, residential, or mixed commercial and 35 residential uses within one-quarter mile of a public transit 36 station shall be entitled to a 25 percent residential density 37 bonus, a minimum 25 percent commercial density bonus, 38 and a 15 percent parking reduction as defined in 39 subdivision (f). A city, county, or city and county shall 40 consider the granting of a density bonus and parking 95 F 5- AB 779 1 reduction as ministerial unless the city, county, or city and 2 county_ makes the findings in subdivision (g). 3 (b) On land designated in an agency's general plan 4 and applicable zoning ordinance as residential, either 5 single family or multifamily, an applicant shall be entitled 6 to a residential density bonus of 25 percent more units 7 than the maximum units allowed under the general plan 8 and zoning ordinance. The applicant shall calculate the 9 residential density bonus by establishing the maximum 10 allowed density under the city's, county's, or city and 11 county's general plan and applicable zoning ordinance 12 and increasing that number of units by 25 percent, 13 rounded up to the closest unit. Any applicable setback 14 requirements and other restrictions that determine the 15 maximum footprint for. the project shall continue to 16 apple. However, the residential density bonus need not 17 comply with otherwise applicable height restrictions. 18 The applicant shall make the request for the residential 19 density bonus at the time the application is submitted and 20 shall include the calculations justifying the requested 21 residential density bonus. Where the applicant's 22 calculations do not conform with the requirements of this 23 subdivision, the city, county, or city and county may 24 revise them to so conform. 25 (c) On land designated in a city's, county's, or city and 26 county's general plan and applicable zoning ordinance 27 for any type of commercial use, an applicant shall be 28 entitled to a commercial density bonus of a 25 percent 29 increase in square footage more than the maximum 30 square footage allowed under the general plan and 31 zoning ordinance. The applicant shall calculate the 32 commercial density bonus by establishing the maximum 33 allowed square footage under the city's, county's, or city 34 and county's general plan and zoning ordinance, 35 including applicable setback requirements, and 36 increasing that square footage by 25 percent. However, 37 if the calculation results in a partial floor, the applicant 38 shall be granted a commercial density bonus of more than 39 25 percent or a percentage equal to the additional square 40 footage necessary to construct a complete floor. An 95 AB 779 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -6- applicant granted a commercial density bonus shall comply with applicable setback requirements and other restrictions that determine the maximum footprint for the project, but need not comply with height restrictions that otherwise might apply. The applicant shall make the request for the commercial density bonus at the time the application is submitted to the city, county, or city and county and shall include the calculations justifying the requested commercial density bonus. Where the applicant's calculations do not conform with the requirements of this subdivision, the city, county, or city and county may revise them to so conform. (d) On land designated in a city's, county's, or city and county's general plan and applicable zoning ordinance for mixed commercial and residential uses, an applicant shall be entitled to both a residential and commercial density bonus as set forth in subdivisions (b) and (c). The applicant shall make the request for the residential density bonus or the commercial density bonus or both at the time that the application is submitted to the city, county, or city and county and shall include the calculations justifying the requested bonuses. Where the applicant's calculations do not conform with the requirements of this subdivision, the city, county, or city and county may revise them to so conform. (e) In the event that compliance with the California Environmental Quality Act (CEQA) (Division 13 (commencing with Section 21000) of the Public Resources Code) is required for either a residential, commercial, or mixed commercial and residential project as described in subdivision (b), (c), or (d), the project, as defined in Section 21065 of the Public Resources Code, shall include the residential or commercial density bonus. Project alternatives in any environmental analysis prepared under CEQA shall not include reduced density alternatives or recommend reduced density as a mitigation measure, unless the alternatives or mitigation are necessary to reduce or avoid a specific, adverse, and significant impact on public health or safety. In the event that compliance with CEQA is not otherwise required, 95 -7- AB 779 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 the applicant's request for or the city's, county's, or city and county's granting of the residential or commercial density bonus shall not make CEQA applicable. The request for or the granting of a residential or commercial density bonus, in and of itself, shall not be interpreted to require a general plan amendment, rezone, or any other discretionary land use approval. (f) On land designated in a city's, county's, or city and county's general plan and applicable zoning ordinance as residential, either single family or multifamily, any type of commercial, or mixed commercial and residential uses, an applicant shall be entitled to a 15 percent parking reduction from the agency's minimum parking requirement. The parking reduction shall apply to the project in addition to the density bonus granted pursuant to subdivision (b), (c), or (d). The applicant shall make the request for the parking reduction at the time the application is submitted to the city, county, or city and county and shall include the calculations justifying the requested parking reduction. In the event that compliance with CEQA is required for a project for which a parking reduction is requested, the project, as defined in Section 21065 of the Public Resources Code, shall include the parking reduction. Project alternatives in any environmental analysis prepared under CEQA shall not include increased parking alternatives or recommend increased parking as mitigation, unless the alternatives or mitigation are necessary to reduce or avoid a specific, adverse, and significant impact on public health or safety. In the event that compliance with CEQA is not otherwise required, the applicant's request for or the agency's granting of the parking reduction shall not make CEQA applicable. The request for or the granting of a parking reduction, in and of itself, shall not be interpreted to require a general plan amendment, rezone, or any other discretionary land use approval. (g) The city, county, or city and county shall grant an applicant's request for the residential or commercial density bonus unless the agency makes a finding, based on substantial evidence in the record, that (1) the city, 95 AB 779 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 O 95 -8- county, or city and county has already adopted a specific plan that entitles the development to at least a 25 percent density bonus, or (2) the residential or commercial density bonus will result in a specific, adverse, and significant impact on public health or safety, including insufficient water, sewer, or other- utilities to support the additional density, or that the public transit station is not pedestrian accessible to the proposed development site, and there is no feasible method available to substantially reduce or avoid the specific, adverse, and substantial impact to an acceptable level. (h) The city, county, or city and county shall grant an applicant's request for the parking reduction unless the city, county, or city and county makes a finding, based on substantial evidence in the record, that (1) the city, county, or city and county has already adopted a specific plan that entitles the development to a 15 percent parking reduction, or (2) the parking reduction will result in a specific. adverse, and significant impact on public health or safety and there is no feasible method available to substantially reduce or avoid the specific, adverse, and substantial impact to an acceptable level. (i) Applicants shall not be entitled to more than one statutory density bonus. 0) Notwithstanding Section 65803, this section shall apply to charter cities for the reasons set forth in Section 65460.1 and because denser development around rail stations is an issue of statewide interest. SENATE LOCAL GOVERNMENT COMMITTEE Senator Richard K. Rainey, Chairman BILL NO: AB 779 AUTHOR: Torlakson VERSION: 6/27/00 HEARING: 7/5/00 FISCAL: No CONSULTANT: Detwiler TRANSIT VILLAGE DEVELOPMENT Background and Existing Law The Planning and Zoning Law requires every city and county to adopt a general plan, with specified contents. Local officials' land use decisions zoning, subdivisions, public works, use permits must be consistent with their general plans. over 20 years ago, the Legislature created the density bonus as an exception to the usual consistency requirement. When a developer promises to make at least 200 of.the housing units affordable for lower-income households, the city or county must grant the developer 25% more units over the otherwise maximum density allowed by the general plan and zoning (AB 1151, Roos, 1979). Over $14 billion has been invested in California's rail public transit systems over the last 25 years but mass transit ridership continues to slip. one reason is that new development focuses on areas served by publicly financed freeways and not on transit corridors. The public investment in rail transit goes to waste when local officials fail to promote private development around rail transit stations. Local officials in some communities have created transit villages by increasing residential and commercial densities within walking distance of rail stops, speeding up permits, and subsidizing public works to attract private investors. In 1994, legislators passed the Transit Village Development Planning Act which allowed cities and counties to plan more intense development around rail transit stations. Transit village plans are supposed to identify areas where local officials would be willing to grant 25% density bonuses (AB 3152, Bates, 1994). Because the plans are voluntary and not linked to specific new sources of development money, cities and counties have not embraced them. A 1998 University of California study reviewed builders' and local officials' experiences with transit villages and found several common themes. One recommendation was that local officials must grant density bonuses in transit villages. Proposed Law Assembly Bill 779 requires cities and counties to grant a 25% residential density bonus, a 25% commercial density bonus, and a 15% reduction in parking requirements to development with a quarter-mile of a public transit station. Development projects qualify for the density bonuses and parking reductions in AB 779 regardless if local officials have adopted transit village. plans. However, local officials do not have to grant the bonuses and parking reduction if they find that the city or county has already adopted a specific plan that provides a 25% density bonus or that the density bonus has adverse public health or safety effects that can't be reduced or avoided. The residential density bonus increases the number of units to 25% more than the maximum number of units allowed by the general plan and zoning ordinance, rounded up to the next whole unit. The commercial density bonus increases the amount of square footage to 25% more than the maximum area allowed by the general plan and zoning ordinance, rounded up to the next whole floor. Both residential and commercial builders must comply with local set-back standards but they can exceed local height limits. The parking reduction decreases the number of parking places to 15% less than the minimum parking requirement. AB 779 requires cities and counties to consider these required density bonuses and the parking reduction to be ministerial decisions unless the local officials find that the city or county has already adopted a specific plan that provides a 25% density bonus or that the density bonus has adverse public health or safety effects (inadequate water, sewers, utilities; no pedestrian access to the transit station) that can't be reduced or avoided. - If a development project triggers an environmental review under the California Environmental Quality Act (CEQA), the project must include the required density bonuses and the parking reduction. The review of project alternatives under CEQA shall not include reducing the densities or increasing the parking requirements unless the reduction is needed to avoid adverse public health or safety effects. AB 779 includes both rail transit stations and ferry landings within its definition of public transit station. rnmmPnta 1. Public dollars private projects Public officials have spent billions to rebuild and expand California's rail transit: interurban rail lines, heavy-rail subways, and light-rail trolleys. The public sector invests in rail transit as part of a wider strategy to cut congestion and boost air quality. But unless local land use decisions attract private investors to build near transit stations, the public's investment will be wasted. One way to motivate private builders is to guarantee bigger projects and presumably better investment returns. The density bonuses and parking reductions in AB 779 will get their attention. 2. A few ingredients short of the full recipe Common sense and good economics suggest that local officials should welcome developers who want to build near transit stations. The UC report found good examples of communities and builders who are doing just that. But a density bonus is just.one ingredient in a more complete recipe for developing transit villages. Dedicating funding for plans and pre-development activities will motivate local officials to accept the more intense land use demands of transit villages. Granting travel credits under the congestion management program will mesh transit villages with overall transportation planning. Better integrating transit village plans into the land use laws can avoid duplicative CEQA reviews. Building state offices in transit villages will boost private investors' confidence. Expanding the transit villages' radius from mile to mile will encourage more development. The Committee may wish to consider why AB 779 fails to include these other recommendations. 3. Window to the region Rail transit stations are truly "windows to the region" that connect transit village residents and workers with the wider metropolitan area. When a suburban community persuades the transit district to build a station but then insists on low density development, the loss is social as well as fiscal. Communities with the benefits rail transit stations have a regional obligation to promote more intense development and capitalize on the public investment. AS 779 exempts communities that have already adopted higher densities. It forces density bonuses on communities that haven't been so accommodating. 4. Down at the station The CalTrain station in San Mateo probably qualifies under AS 779, so does the Lafayette BART station. But the bill doesn't define a "rail station." Does the place where Sacramento's light-rail train stops at 39th Street fit the bill? What about where N-car stops along Judah Street in San Francisco? If every trolley stop is a "rail station," then the resulting -mile concentric circles may cover entire neighborhoods, not just the intended nodes. The Committee may wish to consider adding a definition of "rail station." 5. Since last time After AB 779 failed passage (3-2 vote) on June 21, the Committee granted reconsideration so that the bill could be heard again on July 5. On June 28, the author amended the bill and: Restored the authority for local officials to negotiate development agreements to implement density bonuses. Allowed residential builders to exceed local height limits. Identified two situations in which local officials don't have to approve density bonuses. 6. Double referral Because AB 779 affects the California Environmental Quality Act, the bill must go back to the Senate Rules Committee for a possible double-referral to the Senate Committee on Environmental Quality. Assembly Actions Assembly Local Government Committee: 5-3 Assembly Floor: 48-30 Support and Opposition (6/29/) Support State Treasurer Philip Angelides, California Council for Environmental and Economic Balance, California Housing Council, California Transit Association, Planning and Conservation League, City/County Association of Governments of San Mateo County, Creative Housing Associates LLC, Contra Costa Transportation Authority, Housing Leadership Council, Job-Center Housing Coalition, San Rafael Chamber of Commerce, Santa Clara County Housing Action Coalition, Sierra Club, Silicon Valley Manufacturing Group. opposition California State Association of Counties, League of California Cities, Cities of Albany, Concord, Dublin, Glendale, Hayward, Lafayette, Los Angeles, Manteca, Pincle, Pleasant Hill, San Diego, Victorville. _ Leaque of C alifornia G i,es \1 wwwc,161ic.Otg nrllcr Cities-A ftrttcr Llfe• July 6, 2000 Please Review ASAP TO: City Managers of Cities Represented by Members of the Senate Environmental Quality Committee: Richard Alarcon 13ruce McPherson Hilda Solis Deirdre Alpert Jack O'Connell Cathie Wright Wesley Cheshro Richard Rainey Tom Hayden Byron Sher From: Dan Carrigg, Legislative Representative, League of California Cities Aly Zimmermann, Policy Analyst, League of California Cities Phone: (916) 658-8219 Fax: (916) 658-8240 zimmera@cacities.org RE: AB 779 (Torlakson) - League Oppose, Unless Amended Your help is needed to secure opposition to A13 779 (Torlakson). This legislation will give a 25% density bonus to any residential or commercial project applicants within one- quarter mile of a public transit rail station or a ferry dock or landing, regardless of the general plan or transit village plan of the local government. The development would also be granted a 15% parking reduction. This is a direct preemption of local land use authority and an extremely bad precedent for future efforts by the state to remove control of local land use decisions from local elected officials. Today it's transit stations, tomorrow it wili be your downtowns. Further, this bill completely ignores the significant efforts that local governments have already made to increase zoning densities around transit stations. The Senate Local Government Committee passed AB 779 on July 5, 2000. The following Senators voted in favor of the bill: Johnston, Perata, Polanco, and Soto. The following senators voted in opposition: Johannesscn, Monteith, and Rainey. AB 779 has been referred to the Senate Committee on Environmental Quality, which will hear it when the Legislature reconvenes in August. YOUR SENATOR IS A MEMBER OF THIS COMMITTEE. Please make phone calls and send letters of opposition to the your senators and the Author (Assembly Member Torlakson). A copy of the Lcague's oppose unless amended letter is attached for your review. Please note the letter was written before recent amendments were added to the bill to include ferry docks and landings. 't'hank you Cnnfcrcncc RcgisirationOffice Headquarters SOa111cm Cnlitoi]III brae Pus; 01(icc Lo?: 1519 1400 Y, Street 602 =asi I lumington Dr. Suite C L-,fayeuc, CA 4.4519 Sa.;amauu, CA 9581 14 , Monrovia CA 91016 925.2811.211 3 916 65b.8200 , 626.305.1 315 FAX 9)5.2Fa 7Haz cell nic 11.1 11... _ League of California Cities 1400 K Street, 4"' Floor Sncmniento, CA 95514 June 8, 2000 Assembly Member Tom Torlakson State Capitol, Room 2003 Sacramento, CA 95814 RE: AB 779 (Torlakson) Density Bonus: Transit Villages Notice of Opposition, Unless Amended Dear Assembly Member Torlakson: California State Association of Counties 1100 K Street, Suite 101 I regret to inform you that the League of California Cities and the California State Association of Counties have taken an Oppose, Unless Amended position on AB 779, as amended April 24, 2000. Although we understand and support the concept of increasing the use of public transit and encouraging increased levels of density around transit stations, we believe that this goal is best accomplished through a package 01 state incentives rather than mandates that preempt local land use authority. We have met several times with both the sponsor of this measure and your staff to discuss our concerns, and continue to be willing to meet in an effort to seek agreement, however, with this bill set for policy committee hearing in a few weeks, it is necessary to put our concerns in writing. This bill requires a city or county to give a 25 percent density bonus and a 15 percent parking reduction to the developer of any residential, office, retail, research and development, manufacturing and assembly, medical facilities, or public uses for all projects within one-quarter mile of a public transit station. In short, this bill proposes to override all local general plans and zoning within one-quarter mile of any existing or planned rail station in the state. From a local government perspective this one-size fits-all proposal is an unacceptable invasion of local land use authority by the state. More specifically, below is a list of our concerns with this proposal: 1) One Size Does Not Fit All; The Legislature has often discovered when attempting to craft legislation that affects local governments there are a wide variety.of conditions and circumstances among California's 475 cities and 58 counties; this proposed legislation is no different. Many local governments after much local community involvement and discussion have already zoned increased densities along transit lines, The City of San Jose is an excellent example of this. For others, the concept of a high density hub around their rail station may simply not make sense due to the physical location of the rail station. For instance, the Roseville rail station is located about 10C yards from the Union Pacific roundhouse, a 24-hour per day operation servicing hundreds of locomotives, where nearby residents already signed petitions complaining of billowing diesel smoke, revving engines, and train whistles. In Auburn, the rail station is on the edge of town at the former location of a fruit packing shed; the area is served by several narrow two-lane roads and is across from the town cemetery and the county administrative center. Thus, it is important to recoonize that local conditions vary, and argue against a one-size-fits-all approach. Land use decisions must continue to be made locally so that unique local circumstances and community desires can be addressed. 2) Conflicts With Original Concept of Density Bonus Law: No Affordable Housing Existing density bonus law is a tool designed to address a developer's profit margin when considering affordable housing, not a proposal to increase density for density's sake. Developers have argued that if they are going to produce more affordable housing, then they need to be allowed to build to increased densities so that these projects "pencil-out." Existing law responds to that issue by granting a developer a 25 percent density bonus; in return, the developer must restrict 20% of the units at affordable rents. In short, the increased density is a mechanism to help the developer spread out costs. Therefore, there is a direct nexus between increased density and the development of affordable units. This proposal abandons that approach, and entitles any developer to a density bonus for any type of residential or commercial development within a quarter mile of a rail station. No matter what the project, a developer is entitled to 25 percent more. No matter what the project, the developer is entitled to a 15 percent parking reduction. If the developer is building housing unlike existing density bonus law there is no requirement that some of the units are affordable; therefore, many developers will most likely use this exemption and not seek to provide affordable units near rail stations. Why do it, when they can make more profit with market-rate project? Density bonuses should not be given to developers who do not want to produce the necessary affordable housing. 3) No Clear Transit Nexus With Commercial and Manufacturing Development: Keeping in mind that the original concept of a density bonus was to help a developer subsidize the cost of affordable housing, it does not make policy sense to across-the-board require that any commercial or manufacturing development (office, retail, research and development, manufacturing and assembly, medical facilities, or public uses) automatically is entitled to a density bonus and a parking reduction. For instance, there may be no transit nexus with a particular commercial use and a rail station one quarter mile away; the rail station could be on the other side of the tracks and a freeway from the affected site, with no easy way to get to it, but the developer could still claim a "bonus" because it's within 1320 ft. as the crow flies of a rail station. Densitv bonuses for manufacturing facilities may also not make sense. Many manufacturing facilities are machine-intensive rather than employee-intensive. Also, automatically increasing a building's height may be a prot•lam in areas around airports or it may interfere with the historical or architectural integrity of other existing development in the area. If an office building is 12 stories, why should a developer automatically be entitled to three more? The elected local government should be making these decisions and weighing the policy tradeoffs of specific projects. 4) Mandatory Parking Reductions: A one-size-fits-all parking reduction also fails to meet the unique needs of our many communifies. Some communities already offer parking reductions for certain types of development; others do not. Again, with 475 cities and 58 counties, situations vary. A destination commuter station may require more parking, not less; a community that seeks to develop a thriving commercial hub may require more parking, not less. Reducing parking may make an area less attractive to market housing and commercial space. The businesses may wish to ensure adequate parking for patrons. Existing parking requirements have been determined in these communities after much local discussion, and represent an attempt to balance local interests. How is it that the state knows better what parking levels are best for each one of these individual communities? 5) Questionable CEQA Exemption: Give Developers What They Want, Let Community Deal With Impacts: This bill states that even if significant impacts of increased density or parking issues are identified in the CEQA process, the community is prohibited from addressing them by either reducing density or increasing parking. Why should residents of existing housing have to struggle to park, their cars in front of their own houses when a large commercial business locates nearby and claims both a 25 percent increase in square footage and a 15 percent Parking reduction? 6) Ignores Those Communities That Have Already Done The Right Thing; There is no recognition in this bill for those communities that have already increased housing densities along rail lines or have made parking reductions available. A community that has zoned for high density housing near a rail station is provided no recognition for their efforts. A community that has reduced parking is provided no recognition for their efforts. This bill only provides an exemption when a community provides an identical density bonus programs locally. Therefore, communities that are zoned at thirty units per acre are treated identical to those that are zoned at four units per acre. The above issues highlight the major aspects of our opposition to this measure. As an alternative, we would strongly encourage you to take an incentive approach, such as that you've taken in your AB 2048 which our organizations support by offering property tax incentives for projects that address imbalances in housing supplies. AB 779's approach ignores that many local governments have already taken steps to up-zone areas around transit stations, and many also offer reduced parking, in accordance with local needs and preferences. Many cities and counties have already undertaken such efforts, therefore, it makes no sense for the Legislature to interfere with the land use planning with a broad-brush effort to override all local zoning in these areas. As we have stated in the past, to both the sponsor and your staff, we are willing to discuss ways the state can encourage greater intensification of development around rail stations, but the current proposal is not an acceptable approach. If you have any questions, or if we can be of any assistance, please call Daniel Carrigg, of the League, at 916/658-8222, or DeAnn Baker, of CSAC, at 9161327-7500. ncer y, Sincerely, Daniel arrigg DeAnn Baker c Legis live Represe alive Legislative Representative League of California Cities California State Association of Counties cc: Members and Consultant, Senate Local Government Committee Members and Consultant, Senate Environmental Quality Committee Mike Gotch, Legislative Secretary, Governor's Office