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HomeMy WebLinkAboutORDINANCE 2906 N.C.S. 07/21/2025Docusign Envelope ID: AF8F24BC-2269-4808-AD97-93DD7DD4F77D Ordinance No. 2906 N.C.S. Page 1 of 5 ORDINANCE NO. 2906 N.C.S. Introduced by: Brian Barnacle Seconded by: Frank Quint ADOPTION OF AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA TO AMEND ORDINANCE 2900 N.C.S. ADOPTED APRIL 21, 2025 TO RESTORE APPLICABLE FLOOR AREA RATIO (FAR) IN THE DOWNTOWN HOUSING AND ECONOMIC OPPORTUNITY OVERLAY (OVERLAY) TO 2.5 IN TABLE 5.2 OF SECTION 5.070(D) OF THE PETALUMA IMPLEMENTING ZONING ORDINANCE TO ELIMINATE THE SOLE INCONSISTENCY BETWEEN ORDINANCE 2900 N.C.S. AND THE GENERAL PLAN AS A RESULT OF REFERENDUM ACTIVITY CONCERNING THE OVERLAY, AND TO MAINTAIN IN EFFECT THE REMAINDER OF ORDINANCE 2900 N.C.S. WHEREAS, EKN Development Group applied for a General Plan Amendment and Zoning Amendments to create a Building Form Overlay (later renamed the Downtown Housing & Economic Opportunity Overlay (Overlay)) to develop the EKN Appellation Hotel (Hotel), a 93-room hotel with ancillary food service, parking and event spaces at 2 Petaluma Boulevard South; and WHEREAS, the City conducted three publicly noticed study sessions on June 13, 2023, August 8, 2023, and October 3, 2023, to develop the scope and content of the Overlay, to consist of Subareas A, B, and C; and WHEREAS, three parcels within Subarea A, including two parcels comprising the Hotel project, and one parcel within Subarea B of the Overlay were also within the boundaries of the Petaluma Historic Commercial District; and WHEREAS, the intent of the Overlay was to facilitate the development of residential uses, economic development, preservation of historic buildings and resources and the Commercial Historic District, activate ground levels, and incorporate sites with the greatest opportunity for redevelopment activity by increasing the allowable floor area ratio from 2.5 to 6.0, increasing building height from 45 feet to up to 75 feet, and lot coverage from 80% to 100% for qualifying projects, subject to approval of a conditional use permit, and subject to development and design controls for properties within the proposed Overlay, to ensure specified public benefits and excellence of design in projects benefitting from the Overlay; and WHEREAS, the City, as the lead agency under the California Environmental Quality Act (CEQA) prepared a Draft Initial Study/Mitigated Negative Declaration (IS/MND) for the Overlay and the Hotel (together, the Project) to analyze potential environmental impacts; and WHEREAS, the Draft IS/MND was made available for public and agency review from October 13, 2023, to November 14, 2023; and WHEREAS, on November 14, 2023, the Planning Commission and Historic and Cultural Preservation Committee (HCPC) held a duly noticed public hearing to consider the Draft IS/MND, and the Overlay; and WHEREAS, at the November 14, 2023, public hearing, pursuant to IZO Section 15.020.A.6, the HCPC provided their independent analysis of the Overlay Zoning Amendments and made a recommendation to the Planning Commission; and WHEREAS, on November 14, 2023, the Planning Commission provided their independent analysis of the Overlay Project, considered the recommendation provided by the HCPC on the zoning amendments, and adopted Resolutions 2023-21 and 2023-22 regarding the Overlay; and EFFECTIVE DATE OF ORDINANCE July 21, 2025 Docusign Envelope ID: AF8F24BC-2269-4808-AD97-93DD7DD4F77D Ordinance No. 2906 N.C.S. Page 2 of 5 WHEREAS, following the November 14, 2023, Planning Commission and HCPC joint public hearing, the City commenced preparation of an Environmental Impact Report (EIR) for the Overlay Project to provide greater analysis of the potential impacts of the Project and to provide additional information for the public and reviewing bodies; and WHEREAS, on September 24, 2024, the Planning Commission and HCPC held a duly noticed public hearing to consider information presented by staff, to receive public comments regarding the Draft EIR, and to independently consider the Draft EIR; and WHEREAS, at the September 24, 2024, public hearing, the HCPC considered the public comments received, independently considered the Draft EIR, and by a vote of 4-0 recommended to the Planning Commission that the Commission recommend to the City Council preparation of a Final EIR for the Project, subject to recommendations; and WHEREAS, at the September 24, 2024, public hearing, the Planning Commission adopted Resolution 2024- 12, recommending that the City Council direct staff to proceed with preparation of the Final Environmental Impact Report (Final EIR) for the Project with recommendations; and WHEREAS, on October 7, 2024, the City Council held a duly noticed public hearing to independently consider the Draft EIR and to receive public comments, and adopted Resolution 2024 -125 authorizing staff to prepare the Final EIR, inclusive of responses to public comments; and WHEREAS, on November 18, 2024, the City Council held a duly noticed public workshop to engage in an in-depth discussion about various aspects of the Overlay; and WHEREAS, on February 14, 2025, a Notice of Availability, Notice of Intent to Certify, Notice of Public Hearing, and the Final EIR were filed with the State Clearinghouse and the Sonoma County Clerk, published on the City’s website, circulated in the Argus Courier, mailed to interested persons who requested notification, responsible, trustee and other public agencies, and mailed to all owners and occupants of properties within a 1,000 foot radius of the perimeter of the Overlay study area, commencing the required 10 -day public review period beginning on February 14, 2025, and extending through February 24, 2025; and WHEREAS, on February 24, 2025, the City Council held a duly noticed public hearing to independently consider the Final EIR and to receive public comments on the Final EIR, and certified the Final EIR by Resolution 2025-021; and WHEREAS, on February 24, 2025 at a duly noticed public hearing, the City Council took action on Resolution no. 2025-022 N.C.S. concerning a General Plan Amendment to increase the allowable Floor Area Ratio (FAR) for parcels within the Overlay from 2.5 to 6.0 for Overlay Subareas A through C, and Resolution no. 2025-022 N.C.S. included required findings for each identified potentially significant impact, supported by substantial evidence, as set forth in the Findings of Fact, attached as Exhibit A to the resolution, and Resolution no. 2025-022 N.C.S. also included a Mitigation Monitoring and Reporting Program for the Project, attached as Exhibit B to the resolution, and Section 5 of Resolution no. 2025- 022 N.C.S. provided that its adoption date would be the same as the adoption date of the ordinance enacting the Overlay zoning amendments; and WHEREAS, at the February 24, 2025 public hearing the City Council considered the proposed Overlay Zoning Ordinance, Ordinance 2900 N.C.S., to permit building height from 45 feet to up to 75 feet, and lot coverage from 80% to 100% for qualifying projects subject to approval of a conditional use permit, and subject to development and design controls for properties within the Overlay to ensure specified public benefits and excellence of design in projects benefitting from the Overlay, received public comments and introduced the proposed Ordinance; and WHEREAS, on March 17, 2025, the City Council held a duly noticed public hearing to consider items listed on the meeting agenda, and reintroduced an amended Ordinance 2900 N.C.S. to preserve the enhanced Docusign Envelope ID: AF8F24BC-2269-4808-AD97-93DD7DD4F77D Ordinance No. 2906 N.C.S. Page 3 of 5 development potential and historic resources protections pursuant to the ordinance, but for a Reduced Overlay applicable to Subarea A only, and to receive public comments on the proposed ordinance; and WHEREAS, at the April 21, 2025, City Council meeting, the Council adopted Resolution No. 2025 -047 N.C.S., which amended the General Plan to increase the maximum FAR in the Overlay from 2.5 to 6.0 and repealed and replaced Resolution 2025-022 N.C.S.; and WHEREAS, at the April 21, 2025, City Council meeting, City Council also adopted the amended and reintroduced Ordinance 2900 N.C.S approving the Reduced Overlay applicable to Subarea A only; and WHEREAS, following adoption of the Overlay General Plan amendment increasing FAR pursuant Resolution 2025-047 N.C.S., and adoption of the Overlay Zoning amendment, providing enhanced development potential and historic resource protections pursuant to Ordinance 2900 N.C.S, a referendum petition was timely submitted challenging only the General Plan FAR amendment pursuant to Resolution No. 2025-047 N.C.S., in accordance with California Elections Code Section 9237; and WHEREAS, the Sonoma County Registrar of Voters certified that the referendum petition contained the requisite number of valid signatures, thereby suspending the effectiveness of the Overlay General Plan Amendment pursuant to Resolution No. 2025-047 N.C.S. pending further action by the City Council or electorate; and WHEREAS, as a result of the suspension of the Overlay General Plan Amendment pursuant to Resolution No. 2025-047 N.C.S., the City’s General Plan 2025 remains unchanged and continues to establish a maximum FAR of 2.5 for properties within the Overlay; and WHEREAS, the purpose of this ordinance is to amend the Overlay Zoning Amendment, Ordinance 2900 N.C.S., to eliminate the sole inconsistency between the Overlay Zoning Amendment and the City’s General Plan by amending the City’s Implementing Zoning Ordinance, Ordinance 2300 N.C.S, and specifically Table 5.2 of Section 5.070(D) of the Implementing Zoning Ordinance, to restore the maximum FAR within the Overlay from 6.0 to 2.5 to ensure consistency between the City’s General Plan and the Overlay Zoning Amendment in accordance with California Government Code Section 65860, and to preserve the remaining provisions of the Overlay Zoning Amendment, which established enhanced development potential by permitting building height from 45 feet to up to 75 feet, and lot coverage from 80% to 100% for qualifying projects, subject to approval of a conditional use permit, and also to preserve protections for the City’s historic downtown consisting of development and design controls for properties within the Overlay to ensure specified public benefits and excellence of design in projects benefitting from the Overlay; NOW THEREFORE BE IT ORDAINED by the council of the City of Petaluma, as follows: Section 1. Recital Findings. The foregoing recitals are hereby declared to be true and correct and are incorporated into this Ordinance as findings and determinations of the City Council. Section 2. CEQA Findings. The potential environmental impacts of the Downtown Housing and Economic Opportunity Overlay Project, including the Overlay Zoning Amendment, were fully analyzed in the Downtown Housing and Economic Opportunity Overlay and EKN Appellation Hotel Project Final EIR (SCH # 2024040565), containing all the requirements of CEQA Guidelines Section 15132, inclusive of references, appendices, and all attachments thereto. The Final EIR was certified pursuant to City Council Resolution 2025-021, the Findings of Fact were made pursuant to Resolution 2025-046, Exhibit A, and the MMRP was acted upon pursuant to Resolution 2025-046, Exhibit B. Section 3. General Plan and Public Necessity Findings. In accordance with Sections 25.010 and 25.070 of the City’s Implementing Zoning Ordinance, Ordinance No 2300 N.C.S., (IZO), the amendment to the IZO in Section Docusign Envelope ID: AF8F24BC-2269-4808-AD97-93DD7DD4F77D Ordinance No. 2906 N.C.S. Page 4 of 5 4 of this ordinance is in general conformity with the General Plan 2025 and the public necessity, convenience, and general welfare require or clearly permit the adoption of the proposed amendment: A. General Plan Consistency. This amendment to Ordinance 2900 N.C.S. is necessary to maintain consistency with the General Plan as it is currently in effect. Although Resolution No. 2025-047 N.C.S. amended the General Plan to increase the maximum Floor Area Ratio in the Overlay from 2.5 to 6.0, the effectiveness of Resolution No. 2025-047 N.C.S. has been suspended by referendum in accordance with Elections Code Section 9237. As a result, the General Plan 2025 continues to specify a maximum FAR of 2.5 within the Overlay. This amendment restores the corresponding FAR standard in the IZO to 2.5, thereby ensuring consistency with the General Plan. B. Public Necessity, Convenience, and General Welfare. The public necessity, convenience, and general welfare clearly permit the adoption of this Ordinance amending Ordinance 2900 N.C.S. because it is required to maintain consistency between the City’s General Plan and its Implementing Zoning Ordinance, in accordance with Government Code Section 65860. Due to referendum activity, Resolution No. 2025 - 047 N.C.S. amending the General Plan to increase the maximum FAR in the Overlay is currently suspended and not in effect. As a result, a FAR of 2.5 remains in effect in the Overlay pursuant to the General Plan. Amending Ordinance 2900 N.C.S. to restore the Overlay FAR of 2.5 ensures consistency between the City’s General Plan and Zoning Ordinance, preserves the integrity of the City’s planning framework, and avoids potential legal conflicts arising from a zoning standard that exceeds the currently authorized General Plan development intensity in the Overlay. Section 4. Amendment of Ordinance 2900 N.C.S. Based on its review of the entire record herein, including the July 21, 2025, City Council meeting staff report, all supporting, referenced, and incorporated documents and all comments received, and the foregoing findings, the City Council hereby amends Ordinance 2900 N.C.S. adopted April 21, 2025 to replace Table 5.2 of Section 5.070(D) of the Petaluma Implementing Zoning Ordinance to reduce the maximum Floor Area Ratio in the Overlay from 6.0 to 2.5. Accordingly, Table 5.2 on page 3 of Attachment 3, Exhibit C, of Ordinance 2900 N.C.S., is hereby amended to reduce the maximum Floor Area Ratio from 6.0 to 2.5 in accordance with the following: Table 5.2: Development Standard Lot Coverage 80% Max With Conditional Use Permit⁴ 100% Max Floor Area Ratio 6.0 2.5 Max ¹ Under the Overlay, new buildings to be constructed above the 45-foot height limit would not be subject to the height exceptions provided for in Section 12.020. ² Additional height above 45 feet may be granted, subject to subsection F, below. ³ Additional height above 60 feet may be granted, subject to subsection G, below. ⁴ Additional lot coverage above 80% may be granted, subject to subsection H, below. Except as modified by the replacement of Table 5.2 pursuant to this ordinance, Ordinance 2900 N.C.S. adopted April 21, 2025, remains unchanged and in full force and effect. Docusign Envelope ID: AF8F24BC-2269-4808-AD97-93DD7DD4F77D Ordinance No. 2906 N.C.S. Page 5 of 5 Section 5. Urgency Findings. Adoption of this ordinance as an urgency ordinance with immediate effect is necessary for the preservation of the public health, safety, and welfare in accordance with Section 76A of the Petaluma City Charter. The urgency arises from the requirement under California Government Code Section 65860 that a city’s zoning ordinance must be consistent with its General Plan. Due to referendum activity, the General Plan amendment pursuant to Resolution 2025-047 N.C.S. to increase the maximum Floor Area Ratio (FAR) in the Overlay from 2.5 to 6.0 is currently suspended and not in effect. Accordingly, the operative FAR in the General Plan remains 2.5. Immediate adoption of this ordinance is necessary to restore consistency between the City’s zoning regulations and the General Plan. Without this corrective action, the City’s zoning ordinance would remain in conflict with the current General Plan, exposing the City to potential legal challenges from members of the public or interested stakeholders. Such legal exposure could delay or invalidate land use decisions, impede effective planning and permitting processes, and compromise the City’s ability to ensure orderly development and compliance with state law. Section 6. Severability. If any section, subsection, sentence, clause, phrase, or word of this ordinance is for any reason held to be unconstitutional, unlawful, or otherwise invalid by a court of competent jurisdiction or preempted by State legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful other otherwise invalid. Section 7. Posting/Publishing of Notice The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. Section 8. Effective Date This ordinance shall take immediate effect upon passage by unanimous vote of the City Council members present as an urgency ordinance in accordance with Section 76A of the Petaluma Charter. This ordinance shall automatically be repealed and cease to be in effect without further action by the City Council immediately upon Ordinance no. 2907 N.C.S. taking effect. ADOPTED and ordered published and posted this 21st day of July 2025 by the following vote: Ayes: McDonnell, Barnacle, Cader Thompson, Nau, Quint, Shribbs Noes: None Abstain: None Absent: None Recused: DeCarli Kevin McDonnell, Mayor ATTEST: APPROVED AS TO FORM: Caitlin Corley, City Clerk Eric Danly, City Attorney