"1naking a positive difference now " STAFF REPORT CITY COUNCIL MEETING OF June 2, 2015

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1 NEW BUSINESS a "1naking a positive difference now " STAFF REPORT CITY COUNCIL MEETING OF June 2, 2015 TO: FROM: RE: Nancy Kerry, City Manager John Hitchcock, Planning Manger Resolution Approving the Allocation of 5,000 Square Feet of Commercial Floor Area (CFA) Designated in the Stateline/Ski Run Community Plan and 1,307 Square Feet of CFA from the City's Community Plan Recharge Pool to the Chateau at the Village Project B Phase 1 Project RECOMMENDATION: Consider Adopting the Resolution. SUMMARY The Planning Commission unanimously approved Chateau at the Village Project B Phase-1 on April 30, The project applicant requests an allocation of 1,307 square feet of Commercial Floor Area (CFA) from the City's Community Plan Recharge pool and a release of the remaining 5,000 square feet of CFA from the Stateline/Ski Run CFA pool the City Council originally reserved for the Chateau Project on June 11, The request complies with the City Council's policy for allocating CFA. BACKGROUND: The Planning Commission unanimously approved Chateau at the Village Project B Phase 1 Project Major Design Review Permit on April 30, This project is a phase component of Project 3 which was originally approved in The project went through multiple revisions and the City issued a new permit for the Project in Subsequently, the City revised the permit to allow construction in phases and issued an updated permit for Project 3 in 2014 which resulted in the the construction of Project A Phase 2. This permit is a continuation of 2014 permit and is issued for the second phase of the project (Project B Phase 1 ). The project approved by the Planning Commission includes 123 rentable tourist accommodation units (TAUs), 27,057 square feet of new mixed-used CFA, pedestrian sidewalk and plazas, landscaping and at grade parking lot. All the TAUs for the project are banked onsite. In addition, the applicant has 11,720 square feet of CFA banked on the site and 1,450 square feet of existing CFA associated with the existing Pedego retail building resulting in shortfall of 6,307 square feet. The applicant will need an additional

2 Chateau at the Village CFA Allocation City Council Meeting: June 2, 2015 Page 2 of 3 6,307 square feet of CFA to construct the project. Although CFA is primarily a TRPA issue, the City controls a limited amount of CFA which it can assign to a specific project. ISSUE AND DISCUSSION: The applicant has requested the City assign 5,000 square feet of CFA from the Stateline/Ski Run Community Plan to this project. The City Council "reserved" this amount of CFA for Project B on June 11, 2013 with the approval of Project A Phase 2. The applicant also requests the City assign 1,307 square feet from the Environmental Improvements pool or Community Plan Recharge pool to this project. The Stateline/Ski Run Community Plan specifically identifies 10,000 square foot of CFA for the Project 3 area (Chapter II Land Use Element, Section C. Goals & Policies, Objective 2, Policy A). Although the Community Plan designates this CFA for the proposed project, until the 2013 approval of Project A Phase 2 none of the City's approvals formally approved the use of this CFA in the project. The 2013 action assigned 5,000 square feet of CFA to the Project A site. Thus, 5,000 square feet of CFA remains available for Project B from this source. TRPA has requested that the current action by the City include a specific action to assign the Community Plan CFA to this project. Pursuant to a City Council CFA distribution policy adopted in June 2007, all projects must meet specific criteria to obtain a CFA allocation from the community recharge pool. All projects are subject to the following : 1. Be within an adopted community plan area. 2. Meet the criteria for CFA allocations required by the applicable community plan. 3. Meet all applicable design standards. 4. Include the construction of improvements that will benefit the public and community which are more extensive than required by the applicable community plan or City Code; and 5. Provide an economic benefit to the community with enough significance to merit the allocation of the City's CFA resource. The proposed project is within the Tourist Core Area Plan, formerly the Stateline/Ski Run community plan, and was specifically assigned CFA in the adopted community plan. The Planning Commission found the project met or exceeded all applicable design standards. The project includes public and community benefits more extensive than required, including a "lake passage" public open space/gathering area between the Project A and B structures, and the enhanced Hwy 50 public streetscape. The mixeduse, pedestrian-oriented project will also provide economic benefit to the City from tax revenues generated from retail sales and overnight accommodations occurring within the project area. CITY COUNCIL WORK PLAN: The City Council work plan envisions diversifying revenue sources as a part of Fiscal Sustainability. The development of Project B Phase 1 will improve the tax revenue base of the City with increased property taxes, and new transient occupancy and sales tax from activities at the site. Development of the project provides an opportunity to facilitate

3 Chateau at the Village CFA Allocation City Council Meeting: June 2, 2015 Page 3 of 3 public and private partnerships to pursue investment and development opportunities. Additionally, investment in the area's appearance and infrastructure as directed in the Fiscal Sustainability section will guide the transformation to a vibrant tourist and retail experience with enhanced streetscape and overall improved built environment. GENERAL PLAN CONSISTENCY: The proposed project is consistent with the City General Plan, specifically; it is consistent with the General Plan policies listed in the Land Use Element that encourages expansion of commercial and tourist accommodation projects within the Stateline/Ski Run area (LU-2.1 ), reinforces the Stateline node as the primary tourist district in South Lake Tahoe (LU-2.4, LU-2.11 and LU-6.1), and incorporates mountain architectural design elements consistent with Policy LU-8.1. FINANCIAL AND/OR POLICY IMPLICATIONS: Allocating CFA to this project will reduce the amount available for future projects. With approval of this allocation, a balance of 3,662 square feet of CFA would remain in the Stateline/Ski Run Community Plan pool and 4,566 square feet would remain in the Community Plan Recharge pool. In total the City has 47,832 square feet of CFA remaining in various pools. Although the project will result in a reduction in the amount of CFA available for future project, the CFA from the Stateline/Ski Run Community Plan was intended to support the proposed project and additional retail and restaurant space will generate revenue to the City through increased property and sales tax. CEQA/ENVIRONMENTAL CLEARANCE: The assignment of CFA is exempt from CEQA_ pursuant to Section (3). The activity is covered by the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. ATTACHMENTS: Attachment A: City Council Resolution 2015-_ Allocating Commercial Floor Area to Chateau at the Village Project B Phase 1 Project By: ') Concurrence: EL fl!ut-'--- ~hawna Brekke-Read Development Services Director

4 ATTACHMENT A Resolution Approving the Allocation of 5,000 Square Feet of Commercial Floor Area (CFA) Designated in the Stateline/Ski Run Community Plan and 1,307 Square Feet of CFA from the City's Community Plan Recharge Pool to the Chateau at the Village Project B Phase 1 Project

5 CITY OF SOUTH LAKE TAHOE RESOLUTION NO RESOLUTION APPROVING THE ALLOCATION OF 5,000 SQUARE FEET OF COMMERCIAL FLOOR AREA (CFA) DESIGNATED IN THE STATELINE/SKI RUN COMMUNITY PLAN AND 1,307 SQUARE FEET OF CFA FROM THE CITY'S COMMUNITY PLAN RECHARGE POOL TO THE CHATEAU AT THE VILLAGE, PROJECT B PHASE 1 PROJECT. WHEREAS, the City of South Lake Tahoe has adopted the Stateline/Ski Run Community Plan, identifying 10,000 square feet of Commercial Floor Area (CFA) for "Project 3," and WHEREAS, the City of South Lake Tahoe has been apportioned CF A from the Tahoe Regional Planning Agency (TRP A) for implementing project in community plan areas, and WHEREAS, the City Council has made the following findings, consistent with City Council policy for the allocation of CF A to specific projects for the Chateau at the Village, Project B Phase 1 project: 1. Be within an adopted Community Plan area, The Chateau at the Village, Project B Phase 1 is located within the Stateline/Ski Run Community Plan area and the Tourist Core Plan area. 2. Meet the criteria for CF A allocation required by the applicable Community Plan, As discussed in the staff report and permit for the Major Design Review (City File No ), the proposed project is consistent with the Stateline/Ski Run Community Plan and Citywide Design Standards when recommended conditions of approval are applied. 3. Meet all applicable design standards, As discussed in the staff report and permit for the Major Design Review (City File No ), the proposed project is consistent with the Stateline/Ski Run Community Plan and Citywide Design Standards when recommended conditions of approval area applied. 4. Include the construction of improvements that will benefit the public and community which are more extensive than required by the applicable Community Plan and/or City Code, The proposed streetscape along US Highway 50 is pedestrian friendly and contains many features and details that exceed the minimum standard of the Community Plan. The streetscape includes large sidewalk areas separated from the highway by landscaping and a grade change,

6 City of South Lake Tahoe Resolution No Allocation of Commercial Floor Area June 2, 2015 Page 2 of2 public seating areas, information kiosks and a snowmelt system to ensure year round usability. In addition, the project includes a "lake passage" public open space/gathering area between the Project A and B structures. These improvements will benefit the public by providing a safe, corrifortable, active pedestrian environment. 5. Provide an economic benefit for the community with enough significance to merit the allocation of the City's CFA resource. The proposed project will provide economic benefit by creating jobs, generating sales tax, and improving the aesthetic appearance of a site in a tourist oriented area, potentially making South Lake Tahoe more attractive for tourism. NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe does hereby approves the allocation of 5,000 square feet of CF A designated for Project 3 in the Stateline/Ski Run Community Plan and 1,307 square feet of CFA from the City's Community Plan Recharge pool to the Chateau at the Village, Project B Phase 2 project, with the following condition: Allocated CF A shall be utilized and maintained through an active building permit for the Chateau at the Village Project B Phase 1 within two years of this approval. Failure to utilize the CFA will result in return of the CF A to the Community Plan Recharge pool. PASS AND ADOPTED by the City Council of the City of South Lake Tahoe at a meeting on June 2, 2015 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST Susan Alessi, City Clerk Hal Cole, Mayor