SANTA CLARA CITY PLANNING COMMISSION

SPECIAL MEETING MINUTES

2603 Santa Clara Drive

Tuesday, September 26, 2017

Present:Curtis Jensen, Chair

James Call

Todd Jacobsen

Jason Lindsey

Leina Mathis

Michael Day

Marv Wilson

Staff:Edward Dickie, City Manager

Corey Bundy, Community Development Director

Bob Nicholson, City Planner

Devin Snow, City Attorney

Selena Nez, Planning Commission Secretary

Jack Taylor, Public Works Director

Bob Flowers, Police Chief

Rich Rodgers, Police Captain

  1. Call to Order.

Planning Commission Chair, Curtis Jensen, called the meeting to order at 6:04 p.m.

  1. Opening Ceremony.

Todd Jacobsen led the Pledge of Allegiance and offered the Invocation.

  1. Communications and Appearances.
  1. General Citizen Communication.

There were no citizens wishing to speak.

Chair Jensen commended those who worked on the German clock that serves as an added attraction and complements the community.

  1. Working Agenda.
  1. Public Hearings.
  1. Consider a Request for a Zone Change from Residential R-1-10/RA to Planned Development Residential (PD-R) on 82.7 Acres Generally Located at the South End of Gates Lane on the South Side of Clary Hills Drive, and Extending Upslope and to the South, Split Rock Holdings, Applicant.

City Planner, Bob Nicholson, presented the staff report and stated that the applicant is Split Rock Development Group, represented by Patrick Manning and Kyle Hafen. Mr. Nicholson explained that in the proposed General Plan, the lower portion of the property is designated as single-family low-density residential. Further to the south in the Hills, the development pods are designated as medium-density residential. The project is a total of 82.7 acres in size with 10 acres located along Clary Hills Drive. The balance islocated to the south and upslope over the hill behind the Sycamore Subdivision.

The applicants are proposing a total of 459 dwelling units with an overall density of 5.5 units per acre. The net density is 57.4 acres with a net developable area density of 8 units per acre. Phase1 includes 21 dwelling units proposed on 9.7 acres, also known as the Frei parcel. There are 11 single-family detached dwellings along Clary Hills Drive and another 10 to the rear. The proposed density for Phase 1 is 2.2 units per acre.

Mr. Nicholson presented the changes proposed to Phase 1 over the past few years. The original application was submitted in 2015 with 112 dwelling units proposed. That application was withdrawn and in April 2017 the developer proposed 42 smaller units. That application was revised and now 21 units are proposed on the 9.7-acre parcel. There are no individual driveways or parking proposed along Clary Hills Drive. The architecture is craftsman style and is similar to the Sycamore Parade Home located to the east of the project. The approximate home size will be 3,500 square feet for 13 of the units and 2,100 square feet for the remainder.

Mr. Nicholson reported that the units are proposed to operate within a resort development similar to a bed and breakfast with short-term occupancy. An additional 72 acres were considered for development further to the south for a total of nearly 83 acres. The entire project is proposed as a destination resort with project amenities including a pool, clubhouse, and bike trails. Parking requirements were discussed. The base requirement is two parking spaces per unit in addition to guest parking for short-term rental units in the amount of one additional space for every two bedrooms in excess of the first bedroom. The applicant agreed to comply with the City’s parking standards. All of the units have two or three-car garages.

Mr. Nicholson indicated that that detailed site plans were not available for Phases 2 through 8. The project will serve as a destination resort. The requirements for vacation rentals were as follows:

  1. A local property management company must manage the property.
  1. Recreational amenities shall be provided for guest use sufficient for the size of the project.
  1. The project shall obtain a City business license for short-term rental use and pay the required transient room taxes.
  1. Guest parking shall be provided in the amount of one additional space for every two guest bedrooms.

Mr. Nicholson explained that the Planning Commission should determine if the proposed amenities are adequate for the size of the project.

The Code specifies that the height limit is 35 feet or as approved by the City Council based on consideration of the Planning Commission’s recommendation. The Development Agreement states that in Phase 1 and certain other sensitive areas, the self-imposed building height will be 26 feet. In other areas, the applicants agreed to abide by the 35-foot height limit. The Code requires a minimum of 30% of the project area be in the form of usable open space. The proposed plan includes in excess of 30% open space.

Mr. Nicholson reported that the Landscape Plan includes a planting schedule. A similar plan was anticipated for Phases 2 through 8. The developers agreed that for future phases they would submit a detailed plan similar to Phase 1. One of the conditions would be that Phases 2 through 8 would be subject to approval and submittal of detailed plans.

With regard to traffic, the applicants indicated that the maximum potential number of units in the project will be 459. The dwelling units to be used as vacation rentals generate approximately six trips per day per unit based on the Institute of Traffic Engineers’ Trip Generation Manual. This equates to 2,754 total trips per day, which will require an additional access point on Santa Clara Drive in addition to the Gates Lane Bridge. The project anticipates utilizing Chapel Street as a second access point. The developers wererequesting to participate in the cost of a bridge over the Santa Clara River and Chapel Street. They provided a detailed Traffic Impact Study that specifies that with the estimated project traffic, the affected intersections will still function at an acceptable level of service. Currently, they are at a Level of Service A. Even after completion of the project, those intersections were expected to remain at a Level of Service A or B.

A second bridge crossing the Santa Clara River is a requirement and is planned to be completed in the coming year. The applicants will be required to participate in the bridge construction. Mr.Nicholson explained that the detailed site plan only provides for Phase 1. Elevation drawings were submitted for Phase 1 but the applicants also indicated a general elevation for future phases. Any approval would be conditioned on the submittal of a detailed site plan for Phases 2 through 8 prior to building permit issuance.

Chair Jensen inquired about the bridge, which is anticipated to be constructed within one year, and how it coincides with the development. Public Works Director, Jack Taylor, responded that with the existing bridge, they can allow up to 100 homes to be developed on the south side. Once those 100 permits are issued, there can be no more development until the second bridge is completed. Currently, 70 units were permitted.

Community Development Director, Corey Bundy, reported that the City plans to install two traffic signals on Santa Clara Drive. One will be at Gates Lane and the other at Chapel Street. The conduit and infrastructure had already been installed. Mr. Nicholson commented that Phase 1 is clearly within the viewshed while Phases 2 through 8 are behind the ridgeline.

Patrick Manning identified himself as the owner of property at the south end of Gates Lane and Clary Hills Drive and further south into the South Hills. He reported that it is their intention as the developers to enter into a Development Agreement with the City. The purpose of coming forward with all of the property is to allow them to understand any entitlements they might have and promise certain amenities to the residents of Phase 1. They were requesting approval to move forward with Phase 1 and the entitlements for Phases 2 through 8. Two types of resort properties were proposed. The first would include anything visible from Santa Clara Drive in Phase 1, the Frei parcel, and along the ridgeline.

In response to a question raised by Chair Jensen, Mr. Manning explained that future phases will be visible but only as craftsman style single-family units along the ridgeline. This areawill consist of three phases. The northern ridgeline bed and breakfast development will have an overall density of 2 ½ units per acre. He noted that support was expressed for the craftsman style architecture. The developers also reduced the proposed density of 10 to 11 units per acre in Phase 1 to 5 ½ units per acre overall.

The Phase 1 amenities proposed for the south end of the remaining property will include a restaurant, a pool, lazy river, and pro shop for mountain bike repairs and service. Mr. Manning reported on a Harvard Study conducted for the hospitality industry to analyze the impact on small towns. The top three categories included crime, social interaction, and property values. It was determined that properties within a municipality that contain a true resort development increased in value by 4% per year. It was noted that resort guests are twice as likely to interact with local residents than the resident of a single-family home. In addition, crime decreased in towns with a high-end resort.

Mr. Manning mentioned that at build out the impact from a population standpoint is around 2%. There would also be a 200% increase in job opportunities, no negative impact on schools, and less impact on roads. The proposed location was desired because of the South Hills Recreation Area. Downtown Santa Clara is also desirable. He suggested that rather than focus on potential conflicts of interest, that the City focus on individual interests.

Michael Day referred to the phasing map and asked Mr. Manning to point out where the ridgeline is in relation to the phases. Mr. Manning identified what is proposed to be developed along the ridgeline and the area of highest density. He explained that they do not intend to develop anything on the face of the slope. He noted that the first bed and breakfast buildings will be at the peak.

Leina Mathis clarified that the northernmost portions of Phases 2 and 3 are behind the ridgeline. Mr.Manning explained that all of the bed and breakfast units will be visible from the peak of the ridgeline. He clarified that 11 units will be visible on Clary Hills Drive and another 18 along the ridgeline for a total of 29.

Chair Jensen asked for clarification from Mr. Manning on his request for approval of Phase 1 and an entitlement for Phases 2 through 8. Mr. Manning explained that the Development Agreement specifies that this is a fairly large project. As a result, they do not want approval to build 450 units. They are instead requesting the entitlement so that they can guarantee certain amenities that can be amortized. The developers were presenting an overall zone change for the entire property with the Development Agreement in place. As part of that, Phase 1 would gain approvals because they would come in with the elevations, parking, the landscape plan, and the site plan. It was understood that each additional phase would require approval.

Mr. Manning presented photos of the Entrada development. He reported that the end units were built in 2004 and 2005 and have been through the worst economic crash in the real estate market in decades. He took a City Council Member on a tour earlier in the day to show him the units. He stated that they are in very good condition. Cars are not allowed to be parked in driveways and must be kept in garages.

In response to a question raised by Chair Jensen, Mr. Manning discussed the aesthetics and explained that the development will be clustered over the ridgeline to the back of the property similar to what was originally presented. Their studies showed that from Santa Clara Drive the result will be better than with any other applicant. If single-family homes are built, there would be far fewer restrictions. With the craftsman style homes, an experience will be created from the Historic District that will be more relevant. The visual impact will be as good as one could hope. The developers explained that they took the input received and incorporated it into the plan.

In response to a question raised about concerns with rental units, Mr. Manning explained that every traffic study shows that hotel guests will have less of an impact on a street than a single-family resident and generates 30% of the traffic. Chair Jensen commented that they do not want to see the project change hands, for the units to become dilapidated, or for there to be a change in management because of economics.

Mr. Manning remarked that they want the project to have a “mom and pop” feel and do not want names on buildings or a brand. As part of the planning process, they spoke to representatives from Hilton and Marriott who both strongly supported the concept. The developers were far from reaching a decision in that regard but felt that the most professional organization was Marriott in terms of values, services, and understanding of the hospitality industry. They also felt strongly about keeping the amenities and operations of the pro shop under one management company.

In response to a question raised by Leina Mathis, Mr. Manning reported that approximately 50% of the homes in Entrada are full-time owner occupied.

Chair Jensen encouraged those present to be respectful of those speaking. He explained that the Commission cares about the community and tries to do what is best for the City. The Commission is charged with doing what is best for the City now and into the future. The Commission Members realize there are certain factors that cannot be changed and that growth is coming. The desire is to determine how to best control and address it. Chair Jensen noted that growth brings opportunities for all. He stressed that the Commission looks at factors the City cannot control.

City Manager, Edward Dickie, explained that the Legislature recently considered a law that would have allowed short-term rentals anywhere in any city. Municipalities would have had no opportunity to regulate them in any way. Currently, the City can regulate short-term rentals through zoning and limit them to certain areas. Similar legislation was expected to come forward again next year. Mr.Dickie’s feeling was that it is coming and will likely pass.

Chair Jensen opened the public hearing.

Ben Hegemann gave his address as 1483 Boys Pond Circle in the Hills neighborhood. He inquired about Phase 1 and asked how many units will be in each home. Mr. Manning explained that there will be one unit per home. Mr. Hegemann appreciated the reduction in the number of units. He asked what the cost would be for the City to support the project. He also asked how much revenue it is expected to generate for the City.

Chair Jensen commented that revenue generation is important but the Commission defers to the City Council and staff to work out those types of issues. He stated that the Commission has not yet looked at the numbers. Mr. Dickie reported that staff has not been directed by the Council to determine what the economic impact will be. They do, however, understand that sales and property tax revenue will be generated from the rentals. He pointed out that the property taxes paid will be greater if the units are not primary residences.

Mr. Hegemannexpressed interest in hearing from someone who has lived near this type of unit. He remarked that six trips generated each day per unit seemed high. He felt that the traffic impact will be significant. Mr. Dickie stated that he lives in Bella Sol across from Paradise Village and their neighborhood has 30 full-time residents. He observed that generally their residents generate far more traffic than Paradise Village, which has about 200 units. His neighbors were apprehensive at first about Paradise Village and how they would be impacted, however, they have seen very little change.

It seemed to James Call that the City was fighting the State to not allow short-term rentals and yet they were being told tonight that full-time residential units have a greater impact. Mr. Dickie explained that the City is trying to regulate short-term rentals.

Mr. Nicholson explained that they are not fighting the matter with the State Legislature to disallow them but to ensure that cities can regulate them. In Arizona, for example, cities have been precluded from having any jurisdiction whatsoever. He explained that the property is currently zoned R-1-10, which typically allows three homes per acre. Traffic will be much less in that the typical single-family home makes 10 trips per day. Clustering also helps with water conservation and there is no impact on the school system with short-term rentals.