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CC - Item 2A - Pre-Application 24-02 – Development Plan For Central Park Rosemead 8001 Garvey Ave (Former Auto Auction Lot)ROSEMEAD CITY COUNCIL/ PLANNING COMMISSION MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL THE HONORABLE CHAIR AND PLANNING COMMISSION FROM: BEN KIM, CITY MANAGER DATE: APRIL 9, 2024 SUBJECT: PRE -APPLICATION 24-02 - DEVELOPMENT PLAN FOR CENTRAL PARK ROSEMEAD 8001 GARVEY AVENUE (FORMER AUTO AUCTION LOT) SUMMARY Diamond Star Associates, on behalf of Metodo Investments, LLC, has submitted a Pre - Application (Pre -Application 24-02) for a development plan of the former auto auction lot, located at 8001 Garvey Avenue. The development plan consists of two conceptual plans for the gated community, "Central Park Rosemead". The first plan consists of 245 two and three-story condominiums with attached two -car garages and 38 live/work units fronting Garvey Avenue, for a total of 283 residential units. In addition, the applicant has also explored the possibility of incorporating Microenterprise Home Kitchen Operations (MEHKOs) in the live/work units, which is currently not permitted in the City. The second variation will consist of 244 two and three-story condominiums with attached two -car garages, 34 live/work units fronting Garvey Avenue, for a total of 278 residential units, and a 3,300 square feet commercial building. Both plans will consist of a variety of amenities which include a community club house, a pool, sundeck, outdoor dining areas, and a park. The proposed project currently does not comply with the required floor -area land use mix for a mixed-use development in the Garvey Avenue Specific Plan. The subject site is located at 8001 Garvey Avenue in the Garvey Avenue Specific Plan, Incentivized Mixed Use (GSP-MU) zone. On January 3, 2024, Diamond Star Associates submitted a Pre -Application, which included a project narrative (Attachment "A"), a market study (Attachment "B"), and preliminary plans for the development of Central Park Rosemead. On March 14, 2024, a complete set of revised preliminary plans (Attachment "C") was submitted to the City for review. The Planning Division reviewed the revised preliminary plans and issued a comment letter on March 18, 2024 (Attachment "D"). Since the plans are preliminary, the applicant is aware that comments may be revised as more information is provided. AGENDA ITEM 2.A City Council/Planning Commission Memorandum April 9, 2024 Page 2 of 2 and to provide information on potential site development challenges that may need to be addressed as part of the due diligence process. Prepared by: C>" ---,- Annie Lao, Associate Planner Reviewed by: _Z4� Lily Valenzuela, Deputy Director of Community Development Submitted by: W"4 Stan Wong, Interim Director of Community Development Attachment A: Pre -Application 24-02 Narrative Attachment B: Market Study Attachment C: Pre -Application Pre-Liminary Plans Attachment D: Planning Division Comment Letter, dated March 18, 2024 ca W rW^ V )� OIA c O N .E 0 U cm.qr r.N 'E O N a� iQ C U -W A. cc cn w CL 0 .N v/ T T y r � � c. R o r c y YR O Q. Q U E c U Y y J O O a ZM Q iLO R Q Q oR CO N m U cm -0 r c c L Y m Q 'a r- O a Q) a) Q)m Mw " R Q>>Q CD C N R � - V R U R V c} y .a a) R a O t .. N�°°c='' a mac. 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Dear City Council and Planning Commissioners: "Central Park Rosemead" is a planned 16.0 acres "mixed-use" highly amenitized community located at 8001 Garvey Avenue implementing the "Garvey Avenue Specific Plan." Providing 288 new condominium homes, with live -work models fronting Garvey Avenue, this new community is based on a central open space theme we call "Central Park", for residents to gather in their club house and enjoy social events on the pool deck and open grass areas. "Central Park" is designed to create a community for new homebuyers to escape yard maintenance, meet new neighbors, own their homes, and enjoy the Rosemead quality of life. "Central Park" implements a comprehensive Rosemead residential market study, and therefore, includes a wide range of home sizes from a one bedroom "generational unit' to two, three, and a few four-bedroom townhome designs, all with attached garages. Condominium buildings will have compatible heights to neighboring homes along the west, north, and east property lines. To be neighborhood friendly, buildings on the north property line will match the existing community not exceeding two stories in height, even though the Specific Plan allows four stories. The overall project is "medium density" at 18.0 units per acre, far below that of an apartment project which the Plan allows up to 80 units per acre. It is our opinion the Central Park property is not suitable for high density five story apartment buildings, with resulting significant traffic impacts and overcrowding. Site Plan #1.1 is our preferred design for 288 condominium homes, with "live -work' condominiums fronting Garvey Avenue. As an alternative, we prepared Site Plan #2.1 which has the same "live -work' condominiums fronting Garvey Avenue, but also includes 4100 MacArthur Blvd., Suite 330, Newport Beach, CA 92660 a freestanding commercial building. We do not have tenants for the building but are presenting this alternative if deemed necessary by the City. We absolutely believe the Central Park property is most suited for high quality ownership housing and not "big box retail", office, medical, or similar high traffic generating businesses. Garvey Avenue is only a four -lane arterial highway, two lanes in each direction, and a high-density apartment project would overwhelm Garvey Avenue and surrounding neighborhoods. We also believe "mid -block commercial" would not survive. Unfortunately, no one in 2018 could have foreseen a statewide housing emergency, three years of Covid 19 pandemic, out of control construction costs due to the Pandemic and inflation, home loan rates nearing 7.0% compared to 3.0% in 2021, and almost "complete lack of financing for commercial construction. While we do not disagree with the intentions and positive spirit of the Specific Plan, we are proposing an equally high-quality project which would be a great benefit to the community, is financially feasible, would not compete with current businesses in Rosemead, and construction could commence in 2024. The following explains our proposal details, so we sincerely appreciate your time and consideration: Proiect Overview -Statewide Housing Emergency We recognize your community spent considerable time preparing the "Garvey Avenue Specific Plan" adopted on February 13, 2018. Emerging from the 2008 recession there was apparently a growing interest for reinvestment in the subject property. While automobile businesses could have been viable as replacement of the auto auction, or operating a used car dealership, the Specific Plan provided us guidance to create the extraordinarily high-quality project you are considering. The Specific Plan was very creative and reflected a growing economy in 2018. However, on October 9, 2019, Governor Gavin Newsom signed the "Housing Crisis Act of 2019" commonly known as S6330, responding to the statewide housing crisis. Since then, over fifty-six legislative bills have been signed into law instructing all State agencies and local governments to focus on the creation of more housing. Since the 1960's local governments, like Rosemead, have been required to prepare and adopt "general plans" for the purpose of providing a "land use twenty-year horizon master plan." General plans are adopted by resolution as "policy', then zoning adopted by ordinance became the regulator of land use and development standards. When the Governor declared a housing emergency, the General Plan process was used by the State to acquire greater local control over the provision of new housing. Specifically, the "Housing Element" of a city's general plan was merely a policy document in the 1970s and 1980s. However, in the early 1990s, case law mandated all general plan "land use elements" are required to have quantifiable limits on development, which means "all" properties must have either a "maximum density" for residential development, or a maximum "floor area ratio" (FAR) for non-residential. The State effectively dictated cities could no longer have plans with mere "visions" of the future. 2 With the State imposing greater control over local government land use, the Governor's housing emergency imposes greater control by now enforcing a "fair share" of new regional housing be built in each city. Specifically, implemented by your local council of governments, each city in the SCAG five counties region is provided a mandatory "Regional Housing Needs Allocation" (RHNA) every eight years, which your city was forced to adopt in your 2021- 6th cycle General Plan Housing Element. That Housing Element establishes your expected to achieve new housing construction by 2029. In your Housing Element you have agreed to facilitate 4,612 "new" housing units be built in the next six years, with 2,134 or 46.3% to be "above moderate income" which is traditionally ownership housing. Of the 4,612 RHNA required dwellings, you have designated 892 in the Garvey Avenue Specific Plan. Therefore, in addition to the proposed Central Park 288 homes, you will still need a balance of 604 dwellings to be built in the Specific Plan area in six years. In the 1970s and 80's the State did not "enforce" general plan compliance, today they do. Implementing your General Plan Land Use Element, your "Garvey Avenue Specific Plan" was the next layer of land use regulation applied to 8001 Garvey Avenue. Specific Plans may be adopted by resolution as policy, or by ordinance as property specific zoning. You adopted your Specific Plan "by ordinance", so it is also considered property "zoning" versus traditional R-1, C-1, type designations. Your Specific Plan is very impressive, very comprehensive, and has significantly more detail than we have seen in most specific plans. The 2018 Plan designated 8001 Garvey Avenue as a "mixed-use" property to encourage both commercial and residential uses. However, that is the sole issue facing us as the applicant and project proponent. We cannot build any substantial commercial due to the reasons described herein. Impacts of the Covid 19 Pandemic After adoption of the Specific Plan in February 2018 and the Governor's housing emergency declaration in October 2019, the world was stunned by the Covid 19 Pandemic five months later in March 2020. We were all prohibited from gathering in groups, kept 6' distance between all others, most non-essential commercial businesses were forced to close, and restaurants could only offer "take out" food if at all. City Halls restricted public access and our local small businesses throughout Southern California were extremely damaged. Many small businesses and restaurants were forced too permanently close due to the Pandemic. At the same time "online shopping" became essential for survival, which was another fatal blow against the return of small businesses and regional shopping malls. Many regional malls are now being dismantled such as Laguna Hills Mall completely demolished, and Westminster Mall soon to follow. These two malls had direct frontage on the 1-405/1-5 freeways and still failed. Brea Mall downsized, Buena Park Mall lost half its major tenants, Del Amo Fashion Center in Torrance was recently approved for apartments replacing a major retail store, and Lennar Homes is proposing 274 3 condominiums in one of Del Amo Mall's former parking lots. The Malls are now encouraging new residential in their proximity to support struggling retail businesses. The next damage hit "strip commercial" corridors along most north -south and east -west arterial highways throughout Los Angeles and Orange Counties. The 1950's suburban sprawl of Los Angeles County typifies this style of strip commercial from downtown Los Angeles to the LA Harbor, and easterly through the San Gabriel Valley. The 1950's -1960s strip commercial development is currently shrinking in demand due to fewer "in person" shoppers/buyers and lower demand for office space. Most cities are now focusing their "commercial" land uses at signalized intersections with "mid -blocks" being converted to housing. Commercial retail is highly dependent on traffic counts passing their property, population within a one -mile radius, and income demographics showing discretionary spendable income. Intersections have traffic counts double that of mid -block locations, so it is logical that mid -block retail has been damaged the most. Therefore, to require "new" and "additional" retail and/or restaurant commercial in mid -block Garvey Avenue will further dilute customer trade at already established yet struggling businesses. The industry calls the practice "pirating customers." Commercial retail and restaurants are not healthy businesses right now, and to encourage greater competition in a struggling economy is not a "favorable economic development policy." In our opinion "encouraging new Policy." Impacts of Inflation on the Community The next unfortunate event, not anticipated in your Garvey Avenue Specific Plan, was massive economic inflation from the Pandemic era. Groceries are 30% higher priced, gasoline is 25% more expensive, and utility bills increasing, so the community does not have the same "spendable income" and "discretionary income" it had just three years ago. That is a fact, and it is apparent everywhere. Making the situation worse has been the significant rise in apartment rental rates to offset property maintenance expenses, utilities, and taxes. With all this unanticipated misfortune, there is a significantly high vacancy rate in commercial shopping centers and strip commercial blocks throughout Southern California. Commercial real estate brokers cannot readily market the sale or lease of shopping centers to other commercial investors, instead many properties with high vacancies are being sold for conversion into residential. It is happening throughout the Southern California region. While the commercial retail economy has been damaged, the commercial office market has sustained far worse damage. The Pandemic forced office buildings to close, business employees were forced to work from home, office building owners lost significant rental income due to lease defaults, and the overall value of most office buildings is half what they were in 2019. Compounding the problem is the cost of financing. Specifically, most commercial loans do not exceed ten years, some with fixed interest rates but most are indexed to the federal funds rate. Unfortunately, a high percentage of commercial loans have increasing interest rates or are coming due over the next few years. Replacement 3 commercial financing today is 50% more expensive if even available. Banks are issuing SBA (small business loans) which are government backed, but few wish to issue commercial construction loans. Since commercial building valuations are based on capitalizing rental income, as rental income decreases many office buildings nationwide are now valued less than their debt. For that reason, few if any new office buildings are being built when most listed for sale are priced less than their replacement cost. For that reason, office buildings are now being targeted for conversion or replacement by new rental housing pursuant to the Governor's housing crisis declaration. What is Mixed Use? Mixed use can be vertical or horizontal construction, and any combination of uses allowed in the zone. However, the California Building Code adds layers of regulations and difficulty to build vertical mixed use, if the business space and housing above are separate ownership. For example, ground floor occupancy including a commercial kitchen would not be very compatible with upper floors of residential. Most of the vertical mixed-use buildings are single ownership buildings with commercial lease space on the ground floor and rental apartments above. One building owner manages all tenants, be they commercial or residential, and compatibility issues are resolved by one owner. Vertical mixed use is very difficult to construct and maintain when "ownership condominiums" are above leased or owned commercial space. Homebuilders build homes and not commercial. By law, homebuilders in California are subject to product defect liability claims for ten years from the first owner purchase. Maintaining liability insurance is difficult, and very difficultwhen the condominiums and commercial space are different owners. Once the builder has sold out of the project, issues can arise as to "homeowner" association not controlling commercial tenants, their hours of operation, nuisance noise, and kitchen vent exhaust which cannot pass through the condominium owner's space, so it is vented out the side of a building. In summary, vertical mixed use with commercial and residential works for apartment buildings but has inherent problems for homeowners. It can be done, but it is not preferred by any homebuilder. A vertical "mixed use" building is not a residential building, so conventional "Fannie Mae" (FNMA- Federal National Mortgage Association) backed financing may not be available for some homebuyers, forcing them to alternative higher interest financing. Additionally, FNMA will not back conventional home loans in the secondary marketplace when a "building's occupancy exceeds 65% "renter" occupancy, including commercial tenants. The Garvey Avenue Specific Plan "Mixed -Use" definition is "Residential and Non - Residential." Logically, the only "non-residential" compatible uses would be commercial uses= retail -office -service, not industrial or other special purpose uses. We have created two site plans for your consideration. Our proposed project Site Plan #1.1 is comprised of 288 condominiums with "live work" first floor commercial along the Garvey Avenue frontage. Site Plan #2.1 includes the same "live work" condominiums 5 along the Garvey frontage and a freestanding 3,500 sf commercial building next to the Central Park entry. While we do not have any tenant for the freestanding building, if City Council requires us to build Site Plan #2.1, that property will be parceled for sale and built when a commercial business wishes to locate on the property. However, construction costs may preclude any interest for years since there is already equal or greater vacant commercial space in the area. Proposed Amendment to the Specific Plan The purpose of this discussion is to focus on "today" versus 2018. Your Specific Plan was a great effort, but unforeseen circumstances now make the mixed-use ratio of "35% non- residential floor area to 65% residential floor area" very punitive, thereby discouraging development of the property. Also, due to the extraordinarily high financing cost for apartment construction, very few large-scale apartment projects are being financed. Industry leaders are stating apartment construction, without financing commitments from a year ago, have stopped for the next two to five years. We understand the City's desire to create some form of commercial/non-residential focal point on the property, but other than park space, we cannot identify any economically viable commercial that would be compatible with the residential community. That is why we designed a medium density "park like" community meeting quality and design expectations of the Specific Plan. Therefore, included is our Application to Amend the Garvey Avenue Specific Plan Section 3.4 "Development Standards", by changing the requirement that states "Floor -Area Land Use Mix 65% Residential Use and 35% Nonresidential Use" to read, "Floor Area Land Use Mix as approved by the Planninq Commission and/or City Council." Our proposal would not eliminate any City Council authority but recognizes "one standard does not fit all" properties in the Specific Plan. It is our opinion that revising the Specific Plan, to allow greater flexibility of choice for the Planning Commission and City Council, will "encourage creative project designs" and "promote economic development." We sincerely hope you agree to change your Plan from "rigid to flexible", allowing you to approve our project based on the appropriate balance of non-commercial to residential, and not dictated by a plan prepared before the housing crisis, Pandemic damage, runaway inflation, and the highest financing rates in the past 23 years. With the convenience and pricing of online shopping, traditional standalone commercial is not in demand unless in a very high pedestrian or vehicle traffic area. The mid -block of Garvey Avenue is not in demand when vacant commercial space exists in Rosemead at high traffic intersections. Additionally, considering the cost of "new construction" and the necessary commercial rents to support debt financing and higher property taxes, "new building" rents would exceed existing area rents along Garvey and probably throughout the City. In other words, there is not a justifiable economic demand for "new" commercial office, retail, or restaurants on this property, other than some small specialty business primarily supported by the needs of new homeowners in Central Park. The opinions express in this project letter are based on my thirty-six years of local government "economic development" experience, managing four redevelopment agencies, being a Community Development Director of two cities, Deputy City Manager, and City Manager, then the past thirteen years of real estate consulting experience. I have learned "no one can force commercial business success', as evidenced by significant commercial failures throughout California. Central Park- Summary of Community Benefits The subject property is comprised of ten "legal non -conforming lots" which are smaller than required if the land was subdivided today, and one large lot which fully conforms to zoning minimum lot dimensions and area. However, to implement the Specific Plan property ownership wishes to work with the City and merge all lots to build a single planned community called Central Park. As such, we are making every attempt to comply with Specific Plan requirements and pursue amenity credits as encouraged in the plan, but at 18 dwelling units per acre we do not need an increase in residential density to the Specific Plan maximum of 75 units per acre or building height up to 75'. Again, we propose an ownership mixed-use community with "live -work" residences along the Garvey Avenue frontage, greater open space, compatible building heights to the community, and parking which far exceeds City requirements. Therefore, the benefits to Rosemead far outweigh the need for more commercial along Garvey Avenue. Central Park would offer quality new "first time and move -up buyer housing" for many current residents who wish to remain in the community, maybe have difficulty keeping up with property maintenance, or are tired of constrained apartment living. To identify housing needs, we retained Zonda Advisory to prepare a residential market study which identified buyer demographics, size and type of housing product, number of desired bedrooms, parking, and sales price range. Zonda provides their services to most every major homebuilder in Southern California. Zonda is the expert in identifying exact homebuyer needs which homebuilders use to create their projects, and lenders use to justify construction loans. Our design implements the market study to deliver three product types, each with a variety of bedrooms and floor plans. One creative idea is pairing a smaller one -bedroom home next to a larger family size home to create "generational" housing without an interior door connection. This allows families and their parents to live near each other for mutual assistance such as childcare and elder care. Also, with the scarcity of homes for sale throughout the region, while most current owners are not sellers to keep their low interest rate loans, most major home builders are "buying down" home buyer interest rates. This makes new home purchasing far more inviting and desirable than resale purchases with higher interest rate financing and significant deferred maintenance costs. Central Park is a "right size planned community of 18 units per acre medium density - ownership housing". All buildings are two or three stories, not five story apartment buildings at 65-75 units per acre as allowed in the Specific Plan. If approved, we will offer the largest "new home" community in Rosemead for decades. By building medium density versus high density residential or commercial, project traffic on Garvey Avenue will be 7 significantly less than what would be generated by the projected 1.1 million square feet of new commercial in the Specific Plan. Beautiful Central Park has been designed around an open space park with clubhouse for social activities and casual lounging, a community size pool, pool deck and shade structures to enjoy outdoors on nice days. There will be green spaces for children or senior activities and picnics. For exercise and pet walking, we have two internal walking pathway loops approximately .5 miles each, with designated "pet areas", and two "tot lot" play areas for pre-school children and their parents. While most large apartment projects have open parking spaces in parking structures or outside, we propose a full double car garage for each two bedroom and larger condominium, a single car garage space for the one bedroom, and an abundance of additional open parking for residents and guests. Our overall parking ratio is 2.25 spaces per unit. The Garvey Avenue Specific Plan only requires 1.0-1.5 parking spaces per unit. Central Park is also a community "central" to urban Los Angeles for those working downtown or in the Rosemead area. For those wishing to work from home, all townhome condominiums along Garvey Avenue will be "live -work" designed where the ground floor room would allow commercial business operation and isolates the living space to the second and third floors. Typical home businesses are usually service oriented, and street parking exists along the entire Garvey Avenue frontage. Project CC&Rs would establish restrictions on the types of allowable businesses to ensure peaceful surroundings for neighbors, limit hours of operation, and require business license registration so the City can fully monitor business activity. A planned signing program will be designed for City approval applicable to live -work units. Signage would be limited to the first floor building front and mounted on specific building walls. Sign area, border and non -illuminated face colors will be the same for all business signs. Only the font color and style may differ to allow personal business identification. Window or temporary signage will not be allowed. Again, the signage program will be submitted to the City for approval and regulation. City revenues would increase since all new construction would have an assessed value based on their purchase price. The City should receive at least $350,000 in additional annual property tax revenue. Development Impact fees payable to the City will be $1,839,744 for 288 condominium homes. Business license revenue will be received from all live -work businesses. More importantly, 288 new families will support existing grocery stores, small retail businesses, restaurants of all sizes and themes, gasoline sales, and all other typical businesses servicing new homeowners. We Need City Support to Make This Haagen We sincerely appreciate the time all Council members, Planning Commissioners, and City staff have spent assisting and guiding us to your hearings. We have designed an extraordinary "ownership" housing project that will be a City asset for decades to come. We are not proposing four and five story apartment buildings with densities allowed in your Specific Plan. We are proposing a medium density project giving owners significant 91 open space, landscaping, and a beautiful planned community, not a downtown urban apartment complex. When the Specific Plan was adopted, you recognized the Plan should be amended when necessary. Your Plan states: "Maintenance and Monitoring - as the conditions present in 2018 are anticipated to change throughout the implementation of this Specific Plan, periodic maintenance and monitoring of the Plan will be necessary. The Specific Plan shall be reviewed at least every five years to assess progress towards implementation, and it necessary, identify new or revised implementation measures to meet Specific Plan objectives. " We thank you and seek your vote of approval for "Central Park Rosemead." With your approval, "Central Park" can become an exciting, highly desirable community with construction commencing in 2024. The design team and I will attend your meetings. I am the property owner's authorized agent and will represent ownership at all hearings. Zrely, Q4 YYVtN\) Donald D. Lamm, AICP Managing Principal; and, Authorized Agent for Property Owner Metodo Investments, LLC Attachments: Project and Tentative Tract Map No. 84294 Applications Project and Application Descriptions Design Team Directory Site Plans #1 & #2 Building Floorplans and Elevations Landscape and Amenity Plans Rosemead Residential Market Study Cc: Mayor and City Councilmembers Chair and Planning Commissioners City Manager City Staff Metodo Investments, LLC Design Team Members we Central Park 8001 Garvey Avenue PROJECT DESCRIPTION "Central Park Rosemead" is a planned 16 acres" mixed-use live-work" highly amenitized community located at 8001 Garvey Avenue. While live -work small businesses are located along the Garvey Avenue frontage, the residential component is comprised of 288 two - and three-story ownership condominium homes at "medium density" 18.0 units per acre, with double car attached garages and abundant open parking at a parking ratio of 2.25 spaces per unit versus 1.0-1.5 required by zoning. Condominium buildings will have compatible heights to neighboring homes along the west, north, and east property lines. The Garvey Avenue frontage will have attractive landscaping, with landscape walkways and paseos throughout the community leading to a variety of onsite recreation for toddlers to adults. Designated "tot lots" within sub -neighborhoods will serve those immediate areas while active and passive recreation amenities will be centrally located to all residents. The "Central Park" recreation area will provide a community clubhouse for social events and casual lounging with a community pool, sundeck, and outdoor dining area. Beyond the pool will be a grass park area for children and community gathering events. Overall, "Central Park" will be a fully secured ownership community serving the needs of young adults, large families, and multi -generational senior population. Implementing the Garvey Avenue Specific Plan, "Central Park" will become an exciting, highly desirable, mixed-use community with a planned construction schedule commencing in Summer 2024. Welcome home to "Central Park" Rosemead! November 18, 2023 Central Park 8001 Garvey Av:. _ t�� OSE EAD IirrL�♦�1m.rll ��ir�ir \i��. rir .i MEHKO LIVE -WORK COMMERCIAL 8001 Garvey Avenue Central Park will be an extraordinary community of 283 two and three-story condominium homes with enclosed garages, a "community center", "tot lots" for young children, lengthy walking pathways for residents and their pets, and all surrounded by lush landscaping in the beautiful City of Rosemead, California. Located along a half -block frontage of Garvey Avenue, while not a favorable location for major retail, Central Park will offer a unique opportunity for "live -work" commercial along its entire Garvey Avenue frontage. Thirty-eight three story "live -work" condominiums, on 1.9 acres, will have 21,337 sgft. of "entrepreneurial micro kitchens" and/or retail businesses. Each "MEHKO" small business may have indoor dining, food preparation and sales, along with their own private dining patio. This block of Garvey Avenue has full curbside parking providing convenient access to the many varieties of micro home kitchens and their chefs creations. California enacted AB 626 into law September 18, 2018, establishing regulations requiring cities to allow Microenterprise Home Kitchen Operations (MEHKOs), subject to County Health Departments implementing regulations. The Los Angeles County Health Department has prepared its "MEHKO" guidelines for cities and currently anticipates implementation of their MEHKO laws and operating regulations this spring 2024. Additionally, AB 1325 was Signed by Governor Newsome on July 21, 2023, expanding the rights of MEHKO owners to sell more products than previously permitted up to 90 meals per week and $100,000 in annual sales. This new law allows Chefs to offer a greater variety of meals, cooking classes, and both dining and "to go" orders. Additionally, the State can issue a Type 40 alcoholic beverage license for "onsite beer and wine" service adding to the quality and variety of menu selections. "MEHKOS ROSEMEAD" will be the first branded and marketed commercial district for boutique dining and shopping experiences. With more than forty curbside Garvey Avenue parking spaces, MEHKOS ROSEMEAD will be "the" destination for unique meal preparation, baked delicacies, food products, and outdoor social gathering. Welcome to "MEHKOS ROSEMEAD" for your next dining experience! 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N a� o MC C Q O .aa) O� N LN E O aN aN p coL a)o L`o ycN a >> o o �-`o 0 - c m '° L U -mo c= a a) o o- o a° o c c •� F p N~ O C N N_ CL ° N a C 0 Y N O O p y O a) N U N O C)-- r — p accO U= 3 Qa ) o-ap 6 LNmN UN m N pU Q ° U m ° EN yC 'c E O C aL m O o O C O p L O La° _ O ° c E o °°a v3 m a C3 c 05E -O `0 a Q Qo -0_c mc NE 0 W o a N N•'�6C0- Q 0 m e °oQNa m- O °aE W a ) ca —ca c E .oo'm° o m oo=- -c. w p_ ZUO Q L CO� Up Ve p U Q O . y N p p Cp O ° `+O p L Q C Y c d W -o _ N N u o N LS .a C N d =� ° O O c) C O c) �. O U O > 0 N . =�0 � �Q> :C UO, N ap N 3 N N p N 0 Q N p" U O' a- F- o E �0 M o U �' axi 3 �a-0 0 CD �- CD Cli a� CD 'o 0 10 N 0- 0 Q m U V s 0 O U Q N co6 O CD O O N :o3� N Z �� Attachment C Pre -Application Pre-Liminary Plans Attachment D Planning Division Comment Letter, dated March 18, 2024 MAYOR: STEVEN LY MAYOR PRO TEM: MARGARETCLARR COUNCIL MEMBERS: SANDRA ARMENIA SEAN DANG PoEw Low March 18, 2024 Diamond Star Associates, Inc. 4100 MacArthur Blvd. Suite 330 Newport Beach, CA 92660 Attn: Donald D. Lamm SUBJECT: Pre -Application 24-02 8001 Garvey Avenue Dear Applicant, City of Ipsemead 8838 E. VALLEY BOULEVARD ROSEMEAD, CALIFORNIA 91770 TELEPHONE (626) 569-2100 Thank you for your interest in the City of Rosemead. On January 3, 2024, the Planning Division received your Pre -Application submittal for "Central Park Rosemead", conceptual plans for a new mixed-use development located in the Garvey Avenue Specific Plan. On March 14, 2024, revised plans were submitted introducing a Microenterprise Home Kitchen Operations (MEHKO) concept. The following comments from the Planning and Building and Safety Divisions and the Public Works Department are based on the preliminary conceptual plans that were submitted. Staff understands the plans are preliminary for the purpose of the pre -application review. However, in order for City staff to complete a thorough review of the project the architectural plans require more detailed information. Please also be aware that additional issues could arise as more information is received. Application Requirements The following entitlement applications and fees for the project will be required. Additional entitlements may be required once complete sets of plans have been submitted. 1. Tentative Tract Map - $1,503 + $100/lot 2. Possible Specific Plan Amendment or Variance —Specific Plan Amendment: Cost + 10% and Variance: $1,375 for each variance (Land Use Mix Requirement is not met). 3. Third -Party Geological/Geotechnical Review— Cost plus 10% Please refer to the attached Geotechnical and Engineering Geology Consultation and Review Guide. 4. Potential Environmental Review— Cost plus 10% The includes third party reviews of the environmental document. The applicant will be required to submit any applicable California Environmental Quality Act fees. 5. Publication - $1046 ($523 for Planning Commission and $523 for City Council) Fee is subject to change if additional public hearings are required. 6. LA County Recording Fee - $75.00 Development Impact Fees — On June 9, 2015, the City Council adopted Ordinance 949, to establish Development Impact Fees. The fee for each dwelling unit in a mixed-use development is $5,197 and $1.242 per 1,000 square feet for retail use and $1.812 per 1,000 square feet for office use. Project Summary Data 8. The project data summary table should also provide the following information: i. Name, address, and telephone number of property owner(s), applicant and plan preparer. ii. Assessor's Parcel Numbers iii. Lot Size (include gross and net square footage) iv. Landscape/Hardscape calculations V. Floor Area Ratio (FAR): The maximum floor area ratio in the GSP-MU zone for mixed-use projects is 1.6:1. However, with the incorporation of the community benefit incentive, the FAR may be increased to an FAR of 3.0:1. Please provide the proposed FAR. 9. Name, address, and telephone number of all service providers, including water sewer, school(s), utility companies, etc. 10. Indicate the type of building construction and occupancy (per Uniform Building Code). 11. Floor -Area Land Use Mix: Per the Garvey Avenue Specific Plan development standards, the allowable land use mix is 65% residential and 35% nonresidential. However, with the incorporation of the community benefit incentive, the land use mix may be increased to 70% residential and 30% nonresidential. Currently, it appears that the conceptual plans do not meet this requirement. Please provide all residential and nonresidential square footage in order to calculate the land use mix. Staff acknowledges that conceptual plans for proposed Microenterprise Home Kitchen Operations (MEHKO). Please be aware that neither the City nor Los Angeles County has adopted ordinances to permit MEHKO operations. Currently, the square footage of the proposed MEHKO operations will not count towards the floor -area land use mix. Phasing 12. If the project is to be phased, indicate the proposed phases and their sequence of development and timing. Site Plan 13. Setbacks: All areas abutting residential use shall comply with the setback requirements for "Side — Adjacent to Existing Residential, School, or Park Use" and 'Rear — Adjacent to R-1 or R-2 Zoning Districts'. Please see Table 3.4 — Development Standards, attached. Illustrate that all setbacks and variable height are met on the site and elevation plans. 14. Minimum Building Placement on Lot Frontage: It appears that the requirements have been met. Please review the requirements in Table 3.4 — Development Standards and ensure that the final plans meet the requirements. In addition, the project must comply to the Public Realm and Streetscape requirements listed below: a. Public Sidewalks. The following shall apply to public sidewalks: 1) The minimum building setback shall be twelve (12) feet as measured from the curb face, and shall be in the form of both existing right-of-way and a recorded pedestrian access and utility easement; 2) The minimum building setback area shall include a minimum seven -foot wide detached sidewalk (clear zone) and a minimum five-foot wide parkway (amenity zone) adjacent to all streets. The amenity zone shall be located between the curb face and the clear zone. The clear zone shall be located between the building and the amenity zone; 3) The sidewalk in the clear zone shall be constructed of concrete, comply with ADA accessibility standards and be subject to the review of the City Engineer; 4) The clear zone shall be unobstructed by any permanent or nonpermanent element for a minimum width of seven feet and a minimum height of eight feet; and 5) The amenity zone shall include street trees, landscaping, public signs, public art, street lighting, street furniture, and other pedestrian -oriented amenities, as appropriate. b. Street Trees. 1) All species of mature oak trees shall be preserved or otherwise dealt with in accordance with Article 4, Chapter 17.104. 2) The removal of other mature trees shall be subject to the review and approval of the Urban Forester. 3) Mature street trees that are approved for removal by the Urban Forester shall be replaced with a minimum of three new mature box trees that have at least a 24 -inch box and are the same species of the replaced mature street trees or a species approved by the Urban Forester. The City reserves the right to increase the number of trees if it deems necessary in order to compensate for mature tree loss. 4) The amenity zone shall be planted with street trees at an average spacing not greater than thirty (30) feet on center. c. Transit Stops. 1) Transit stops shall be designed as integral elements of a residential/commercial mixed-use development by collocating them with pedestrian -oriented amenities, such as pocket parks, courtyards, plazas, etc., whenever possible. 2) When an existing transit stop is located on a sidewalk adjacent to the location of a development, a shelter for transit patrons shall be constructed that: a) Incorporates architectural features of the development and is compatible with the development; and 3 b) Includes a shelter, bench and lighting. Parking 15. Please provide a parking calculation table. Indicate how many off-street parking spaces will be provided for the residential use, the residential guest parking, and the proposed commercial use. Please see below for the following requirements: i. Residential: For residential developments, the project shall provide no less than 1.0 standard sized parking space/dwelling unit. ii. Residential Guest: In addition to the residential spaces described above, 0.5 standard sized parking space/dwelling unit is required guest parking. a) Parking provided for residential uses or the residential component of a mixed-use structure must be covered and secure. Guest parking may be uncovered. All stalls shall be double stripped and standard sized. The required parking stalls may include up to 25% of the total stalls as compact parking. iii. Restaurants with floor area less than 2,500 s.f. - 1 standard sized parking space per 400 s.f. iv. Restaurants with floor area greater than or equal to 2,500 s.f. - 1 standard sized parking space per 200 s.f. V. Nonresidential other than Restaurant and Hotel - 1 standard sized parking space/400 s.f. 16. Please refer to Rosemead Municipal Code Section 17.28.030(D)(2)(c) in regard to Bicycle Parking. In addition, Bicycle parking spaces provided for residential use must be covered, secured, and located separately from bicycle parking spaces provided for nonresidential uses. 17. Access Driveway Width: The minimum width for a two-way access driveway is 24'. Please label all access driveway widths on the site plan to ensure this requirement is met. Landscaping and Open Space 18. Landscaping and tree planting plan including type and location of plant materials to be used and an irrigation plan, in accordance with the City's Water Efficient Landscape Ordinance (RMC Chapter 13.08). 19. Please ensure all landscaped and open space areas are in compliance with Table 3.4 — Development Standards. 20. Provide a table that includes a breakdown of all square footages associated with the appropriate category. a. Usable Public Open Space (Commercial) i. Open space amenities for public use such as trees, seating, and recreational amenities should be provided in open space. High quality porous pavers, porous concrete or other porous paving materials shall be used for all plazas and hardscape. Shade trees should be provided in all open space. Parks and greenways should be designed with high-quality benches, lighting, paving, and landscaping. Usable public open space does not include libraries, gymnasiums, nor recreation rooms. 50% min. of usable public open space shall be landscaped. b. Usable Private Common Open Space. (Residential) 4 All usable common open space shall be conveniently located and readily accessible from all residential units in a residential or mixed-use development. b. Each usable common open space shall have no side with a dimension of less than 10' and may incorporate any areas of the site except where it is within 5' of public rights-of-way, private streets and alleys, and shall not include or incorporate any driveways or parking areas, trash pickup or storage areas, pool equipment, or utility areas. Usable private common open space can occur in the form of a pool area, tennis courts, private park, or tot lot, etc. 21. Usable Private Open Space. (Residential) i. Private open space must be open to air, not fully enclosed with walls. Private open space cannot be covered by a roof by more than 50% of the area; however, balconies can have up to 100% ceiling coverage. Private open space includes balconies, patios, or yards. Private open space balcony dimensions shall be a minimum of 5' in any direction and private open space ground floor dimension shall be a minimum of 8' in any direction. There shall be a minimum of 75 sq. ft. of usable private open space per unit. Elevations 22. Ground Floor Height: Please ensure the ground floor height requirements are met. a. Nonresidential — 14' minimum b. Residential— 10' minimum 23. Please ensure the elevation above street level is compliant with Table 3.4 — Development Standards. 24. Please ensure the ground floor building design (blank walls and wall glazing) is compliant Table 3.4 — Development Standards. 25. Please ensure the setbacks for light, air, and privacy are compliant with Table 3.4 — Development Standards. 26. Please label the height of the building from grade to the highest point (includes elevator housing, stairways, tanks. Ventilation fans, etc.). Walls/Fences 27. Walls and Fencing - Indicate the location, height, and type of construction materials of all walls and fences. The proposed walls shall be decorative and architecturally compatible with the proposed building's exterior. Vines shall be planted six (6) feet apart along the walls to soften the appearance. Mechanical Equipment 28. Identify all mechanical equipment on the site plan. All ground level and roof top appurtenances and equipment shall be adequately screened such that they are not visible from adjacent properties or public right-of-way. a. Wall mounted equipment shall be flush with the exterior of the building and painted to match the exterior of the building. b. Ground and pad mounted mechanical equipment and other such equipment shall be screened from all public rights of way and adjacent properties by architectural building features, fencing or landscaping c. Provide a cross section of roof parapets which indicates the height of the parapet wall in relation to the proposed solar panels and any new mechanical equipment. Trash 29. Trash Enclosures — Illustrate the location and provide dimensions of the trash enclosure. Per RMC Section 17.32.050, solid waste and recyclable materials storage areas are subject to the following criteria: a. Architectural Design - Enclosed solid waste collection areas shall be conveniently located and shall be an integral part of the architectural development of properties with three or more residential units and all properties with nonresidential development. The enclosure areas shall be of the same architectural style of the development by the use of colors, materials, and design. b. Minimum Dimensions - Enclosure dimensions shall be a minimum of six feet six inches in depth by ten (10) feet eight inches in width for single bin enclosures, and a minimum of six feet six inches in depth by eighteen (18) feet eight inches in width for double bin enclosures. Trash enclosures shall be constructed with reinforced masonry block walls not less than six feet in height and shall be equipped with self-closing, solid, doors and a solid roof. The roof should provide adequate clearance to allow complete access of waste bins. The enclosure shall be designed to accommodate individual bins or containers that protect contents from adverse environmental conditions that might render recyclable materials unmarketable. c. Location. No trash enclosure shall be located in any required parking stall, vehicle back-up aisle, or required landscaped area. d. Adequate vehicular access to and from the solid waste collection area shall be provided. e. Solid waste collection areas shall be maintained in a closed manner at all times to prohibit the visibility from public right-of-way or adjacent property. Doors shall be properly secured to prevent access by unauthorized persons and minimize scavenging, while allowing authorized persons' access for disposal and collection of materials. Please contact Republic Services to ensure that onsite waste storage is adequate. Lighting 30. Please note the following requirements on the plans: c. All developments shall have exterior lighting that provides adequate visibility at entrances, public sidewalks, open areas, and parking lots with a safe level of illumination at night. d. Exterior lighting shall be of low intensity and shielded so that light will not spill out onto surrounding properties or project above the horizontal plane. In residential/commercial mixed-use and commercial/industrial mixed-use development, the lighting for commercial uses shall be appropriately shielded so that it does not negatively impact the on-site residential units. e. Flashing, revolving, or intermittent exterior lighting visible from any property line or street shall be prohibited, except if approved in conjunction with a public art project or as an accessory feature on a temporary basis in conjunction with a special event permit. f. Lighting shall be integrated with landscaping wherever possible. Misc. 31. Per Garvey Avenue Specific Plan Section 3.3.4., a market study is required for all mixed- use project applications. The market study must affirm or support the land use mix and the extent of the proposed land uses. The market study must be prepared by a reputable market professional or firm. The City of Rosemead staff will affirm the market professional or firm's credentials to prepare such study and affirm the study's findings. Staff acknowledges that a market study was provided, however, a revised market study will have to be submitted once the plans are finalized and near the approval stage. Comments from Reviewing Agencies 32. Enclosed with this letter are copies of the comment letters from the following agencies: a. City of Rosemead Public Works Department b. City of Rosemead Building and Safety Division Please review the attached comments and respond accordingly as such comments may affect the proposed project. Staff would like to meet with you to discuss the comment letter and debrief all comments and direction given at the special joint workshop with the City Council and Planning Commission. Please feel free to contact me at (626) 569-2144 or alao@cityofrosemead.org if you have any questions regarding this matter. 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