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HomeMy WebLinkAboutStaff Report 5.E 01/06/2020p, L I85� DATE: TO: FROM: Agenda Item #5.E January 6, 2020 Honorable Mayor and Members of the City Council through City Manager ',a, 'r Christina Paul, Principal Planner SUBJECT: Resolution Approving Application to Metropolitan Transportation Commission and Association of Bay Area Governments to Establish a New Priority Development Area Surrounding the Future Corona Road SMART Station and Expand the Existing Downtown SMART Station Priority Development Area. RECOMMENDATION It is recommended that the City Council adopt a resolution approving application to Metropolitan Transportation Commission (MTC) and Association of Bay Area Governments (ABAG) as part of the Priority Development Area (PDA) Planning Program to establish a new PDA surrounding the future Corona Road SMART station and expand the existing PDA surrounding the Downtown SMART station to ensure the City of Petaluma's eligibility for PDA Planning Grant and Transportation Infrastructure funding, while preserving local control of all land use decisions. BACKGROUND In 2007, the City of Petaluma applied for and received a Priority Development Area designation for central Petaluma. That area covered the "Turning Basin" and "'Lower Reach" sub -areas of the Central Petaluma Specific Plan (CPSP), including the then unbuilt Sonoma -Marin Area Rail Transit (SMART) station located at the edge of the specific plan boundary. In 2009 the City expanded that PDA to incorporate both the remainder of the CPSP area and the full 1/4 -mile buffer surrounding the downtown SMART station and Copeland bus transfer station (approximately 450 acres). The adopted 2013 Station Area Master Plan provides policies and design guidelines for the Downtown SMART Station area, which largely but not precisely mirrors the existing PDA. The Plan also briefly describes the potential for new development surrounding the future SMART Station at Corona Road and McDowell Boulevard. In September 2019, the City submitted a Letter of Interest to MTC/ABAG indicating interest in establishing a new PDA surrounding the future Corona Road SMART Station. MTC/ABAG now requests that the City submit a formal application to establish a PDA by January 16, 2019. The next step in establishing a new PDA is for the City to submit a formal application to MTC/ABAG before the January 16, 2020 application deadline, which must include a resolution demonstrating the City Council's support of the application. In addition to establishing a new PDA at the future Corona Road SMART station and in discussion with representatives from MTC/ABAG, staff is further recommending that the Council approve an application that also includes modification to the boundaries of the existing PDA at the Downtown SMART station in order to maximize funding opportunities of the PDA program. PDAs are administered by MTC/ABAG and are a primary method for identifying projects to receive funding. Very minimal funding from MTC/ABAG is occurring for projects outside of PDAs. Establishing a PDA is a way to gain access to potential funding, but does not impact local control over planning, land uses, or project approvals. A PDA could help fund planning efforts such as a specific plan or area plan within a PDA. Additionally, funding opportunities are available for infrastructure projects, housing projects, and technical and staffing assistance for projects within a designated PDA. Cities may withdrawal from the program at any time. PDAs will not impact Petaluma's Regional Housing Needs Allocation (RHNA) and designation of a PDA does not alter existing zoning or development regulations established by the local jurisdiction. PDAs may be designated as either a Transit -Rich or Connected Community PDA. The recommendation is to adopt a Transit -Rich PDA, as this gives Petaluma increased flexibility and does not require the immediate adoption of a Vehicle Miles Travelled (VMT) reduction plan. Transit -Rich PDAs must be within an existing community, at least 50% of the properties within the boundaries of the PDA must be within a half -mile of frequent transit (planned or existing), and a Transit -Rich PDA must be in an area planned for future housing and job growth. When considering funding requests for projects within designated PDAs, MTC/ABAG places priority on projects that: • Increase housing supply, including affordable housing, and jobs • Boost transit ridership and reduce vehicle miles traveled (VMT) • Increase walking, bicycling, carpooling and carsharing by effectively managing parking and driving while promoting multimodal connections • Retain and expand community assets and locate key services and retail within the planning area. Some examples of the types of projects that may receive funding through MTC/ABAG within designated PDAs include: • Development of planning documents such as specific plans, design guidelines, form -based codes, and placemaking • Construction of area wide infrastructure improvements such as new rail stations, sidewalks and bike lanes • Technical assistance and staffing assistance for planning efforts within PDAs • Adoption of affordable housing and anti -displacement policies for properties within the PDA • Development of VMT-based transportation impact standards • Creation of Parking and Transportation Demand Management (TDM) policies and programs I One of the key benefits of creating a PDA at the future Corona Station is gaining access to funding opportunities, including dedicated funding from MTC for plans and infrastructure improvements access, and competitive state transportation and housing funding programs that now prioritize projects in PDAs. These funding opportunities allow Petaluma to plan for and shape development in designated PDAs instead of being reactive to market pressures. The designation of a PDA does not change existing zoning or development regulations, nor does it change local development review process. Formal application to MTC/ABAG to establish a PDA is due by January 16, 2020. The City may change the PDA boundary up to and beyond that point. If the City's application is approved and a new PDA is created, the City has until 2025 to begin planning for the PDA by either initiating development of a Specific Plan or a zoning update for the PDA area. This project could be funded by the MTC/ABAG grant program. Petaluma may choose to develop a new Specific Plan for the Corona Station PDA and update the Downtown Station Area Plan in conjunction with the upcoming Housing Element (2023) and General Plan. DISCUSSION PDA boundaries proposed for both a new Corona Road SMART Station PDA and a modified Downtown SMART Station PDA are illustrated in Figure 2 below. The proposed boundaries were selected in consultation with MTC/ABAG and with the following three considerations in mind: • Proximity to an existing or proposed SMART station: In order to be eligible to be a Transit - Rich PDA, at least 50% of the PDA must be within 1/2 mile of the station. Parcels within this area are included because they may see future land use changes, and/or they are adjacent to areas where the City may want to invest in infrastructure, and/or simply to assist the City in reaching the 50% threshold (though they will see little change). The areas surrounding a SMART Station are more likely to see interest in infill development and bicycle/pedestrian improvements. • Potential, for Updated Land Uses or Planning Protection: Some parcels outside the Transit - Rich area are included because they have the potential to accommodate development appropriate to their neighborhoods, or they could benefit from updated planning direction and protections • Potential for- Infrastructure Investment: Like parcels within the Transit -Rich area, some parcels outside that boundary are included because of an opportunity for adjacent infrastructure improvements, like streetscape modifications. Corona Road SMART Station Area PDA The proposed Corona Road SMART Station PDA boundaries were selected to maximize inclusion of parcels within a 1/2 mile radius of the future station and extend along the McDowell corridor to Washington Street. As shown in Figure 1 below, the 1/2 mile radius from the future station extends beyond the City's Urban Growth Boundary (UGB) at the corner of Corona and the SMART rail. The proposed boundaries include 13 parcels that are outside of the City's Urban Growth Boundary but more than 50% of each of those parcels is within the 1/2 mile radius of the future station. Those parcels that are outside of the UGB and more than 50% outside of the 1/2 mile radius are not included in the proposed PDA boundaries. The existing Station Area Master Plan identifies this area for potential UGB expansion because of its proximity to the future SMART station as a major 3 transit node. Inclusion of parcels outside of the UGB does not require changes to the UGB or changes to the City's policies about development outside of the UGB. The existing UGB extends to 2025 and will be considered by the community as part of the upcoming General Plan Update process. Inclusion of parcels outside of the UGB in the proposed PDA does not obligate any change in the UGB boundaries as part of that future decision. However, inclusion of these parcels in the PDA makes the City eligible for funds to facilitate planning efforts such as a specific plan to proactively shape future development around the station. Additionally, inclusion of these parcels in the PDA boundaries (50% of the PDA within '/ mile radius of future station) allows the City to include more parcels outside of the '/2 mile radius to extend along the McDowell corridor to Washington Street. In turn the inclusion of these parcels makes the City eligible for infrastructure funds for improvements along the McDowell corridor that would be essential to facilitating and incentivizing a denser development pattern around the station as identified in the Station Area Master Plan. Additionally, inclusion of parcels along McDowell to Washington Street provides connection between the boundaries of the Corona Road Station PDA and the Downtown PDA to plan for and implement cohesive streetscape improvements and overall development approach linking the two areas. Elimination of those parcels outside of the UGB from the proposed PDA boundaries reduces the inclusion of parcels within a '/2 mile radius of the future station below 50% and therefore would require a reduction of parcels outside of the '/2 mile radius in order to meet the criteria for designation of a Transit Rich PDA. More specifically, this would require eliminating parcels along 11 the McDowell corridor and would eliminate the connection of the city's two PDAs at Washington Street. Downtown SMART Station Area PDA The Downtown SMART Station Area PDA incorporates the parcels in the existing PDA (though the PDA boundary now adheres to parcel lines rather than a circle around the SMART Station). Added parcels within the Transit -Rich area include the immediate neighborhood of the Clover- Stornetta Factory, where there is development potential and interest, as well as the blocks of Downtown between Petaluma Boulevard, Wester Avenue, Washington Street and Keokuk Street. These Downtown parcels are included in order to make the area eligible for streetscape/infrastructure improvements. Added parcels outside the Transit -Rich area include those along Washington Street. They also include commercial parcels adjacent to Highway 101, where property owners have expressed an interest in more intense development, and an area identified for the development of a cross-town connector, a major infrastructure project. Development in this area is the focus of the Petaluma SMART Rail Station Areas: TOD Master Plan. tai=our°e 2e Proposed PDA boundaries General Plan Consistency 5 The proposed PDAs are in compliance with the Petaluma General Plan 2025 generally in that they do not directly change any existing regulations. The adoption of a PDA does not require any future action by the city, though the PDA program in general is intended to promote infill development near critical transportation infrastructure as well as transportation improvements that lead to VMT reductions. While the City has not yet determined what policy changes may take place in the PDAs, the General Plan indicates a preference for infill development and reticence to expand the Urban Growth Boundary (Guiding Principal #1 and Policy 1.1 of the Housing Element). The General Plan also states that the City will increase options for alternative transportation (Guiding Principal #6 and Policy 1 of the Bicycle and Pedestrian Plan), expand its pathway system (Guiding Principal #5 and Policy 11 of the Bike and Pedestrian Plan), and enhance the Petaluma River Corridor (Guiding Principal #4). All of these principals and policies are compatible with the PDA program and could be served by planning and infrastructure projects in the PDAs/ The Mobility Section in the General Plan further proposes constructing two cross-town connectors, each of which would terminate in one of the two PDAs. Station Area Master Plan Consistency The 2008 Petaluma SMART Station Area Master Plan provides policies and design guidelines for the Downtown SMART Station area, which largely, but not precisely, mirrors the existing PDA, and focuses on encouraging infill development(Housing Recommendation #2), providing a range of housing types and sizes (Housing Recommendation #4), connectivity (Section 5.2 Planning Principles, #5), and River access (Section 5.4 Downtown Petaluma Station Area Recommended Access and Connectivity Enhancements, #16). The Plan also briefly describes (Section 2.9) the potential for new development surrounding the proposed SMART Station at Corona Road and McDowell Boulevard, identifying this area for a potential expansion of the Urban Growth Boundary and long-term potential for transit -oriented development. The Community Goal for the Corona Road Station area is to improve connectivity (page 2-42). The intent of the PDA program, with its focus on infill development, transit orientation and connectivity is generally in compliance with the goals for this Plan, acknowledging that the adoption of a PDA does not necessitate land use policy or zoning updates. This Plan may be updated to reflect current conditions and significant development and development interest in both PDAs since the Plan was written. The funds for an update may come from the PDA grant program. River Access and Enhancement Plan Consistency The proposed Corona Road PDA includes an Upstream segment of the Petaluma River, as defined in the River Access and Enhancement Plan. The Plan calls for pedestrian and bicycle trail access along and to the river (Section 3.3), as well as buffering the River from development in order to protect riparian habitats and prevent property damage from flooding. The Downtown SMART Station PDA and proposed expansion areas include Lakeville Industrial, Downtown, Warehouse, and Downstream segments of the River as defined in the plan. The Plan calls for pedestrian and bicycle trail access along and to the river throughout these segments, as well as interventions to prevent property damage from flooding. The intent of the PDA program is generally in compliance with these goals, acknowledging that 3 the adoption of a PDA does not necessitate land use policy or zoning updates. ENVIRONMENTAL REVIEW The proposed resolution and application to establish a new Corona Road SMART Station PDA and modify the existing Downtown SMART Station PDA are exempt from the California Environmental Quality Act (CEQA) as they do not represent or necessitate land use designation or zoning changes, nor will they directly result in physical development or changes to the landscape. Any future land use or zoning code updates in the PDA areas will be reviewed under CEQA as necessary. FINANCIAL IMPACTS Establishing these PDAs will increase the City's eligibility for planning and transportation infrastructure grant funding. PDAs are administered by ABAG/MTC and are a primary method for identifying projects to fund. To date, MTC has invested over $630 million in PDA projects. They are funding few projects outside of these areas. In the past the City received $240,000 in planning grant funding, which went towards the development of the SMART Station Area Plan. Planning Grants have since been increased to a total possible maximum of $800,000. ATTACHMENTS Attachment 1 Resolution applying for designation of a new Corona Road SMART Station PDA and modifying the existing Downtown SMART Station PDA Exhibit 1 PDA Boundaries ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA TO APPLY TO METROPOLITAN TRANSPORTATION COMMISSION AND ASSOCIATION OF BAY AREA GOVERNMENTS FOR DESIGNATION OF A NEW CORONA ROAD SMART STATION PRIORITY DEVELOPMENT AREA AND MODIFICATION OF THE EXISTING DOWNTOWN SMART STATION PRIORITY DEVELOPMENT AREA WHEREAS, the Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (A A) are preparing Plan Bay Area 2050 (the Plan), a long-range plan charting the course for the future of the nine -county San Francisco Bay Area; and WHEREAS, the Plan will serve as the Bay Area's Regional Transportation Plan and Sustainable Communities Strategy, outlining strategies for growth and investment through the year 2050; and WHEREAS, ABAG and the MTC are creating a Regional Growth Framework to be used in the Plan; WHEREAS, this Framework includes locally nominated Priority Development Areas (PDAs) as locations to coordinate local and regional planning for housing, jobs, and future investment; and WHEREAS, jurisdictions with PDAs have access to regional funding that is dedicated to plans and infrastructure improvements in PDAs; and WHEREAS, of stationRoad and McDowell Boulevard; WHEREAS, the new SMART station will impact local transportation patterns and development demand, and WHEREAS, approved projects in the area surrounding the existing Downtown SMART Station PDA have introduced a significant increase in density and intensity since the Station Area Master Plan was adopted in 2013; and WHEREAS, Downtown SMART station has become one of the most popular and well used stations along the SMART transportationWHEREAS, the Downtown area would benefit from additional funding for MUlti-modal - to accommodate and the increase in density and intensity of _ WHEREAS, the City of Petaluma is highly focused on climate change mitigation and reducing the local need to rely on private automobiles; and WHEREAS, the City of Petaluma plans to update its General Plan and Housing Element in 2023; and 01 ATTACHMENT 1 WHEREAS, the City of Petaluma plans to develop Specific Plans or similarly detailed plans for the PDA areas to respond to changing conditions and maximize the local benefit of its transit stations; NOW THEREFORE, BE IT RESOLVED by the Council of the City of Petaluma Is Submit an application to MTC and ABAG to designate a new Corona Road SMART Station PD and to modify the existing Downtown SMART Station PDA as shown in Exhibit 1. 1 PASSED, APPROVED AND ADOPTED by the City Council of the City of Petaluma a regular meeting held on the January 6, 2019 by the following vote: i 1-2 ATTACHMENT 1- EXHIBIT 1 Proposed PDA Boundaries Um