GENERAL PLAN REPORT 2002 Fall Hearing		Hearing Date/Agenda Number: P.C. 11/18/02 Item: 2.d.2
		File Number: GP02-04-02
		Council District and SNI Area: 4 – NA
		Major Thoroughfares Map Number: 51 and 67
		Assessor's Parcel Number(s): 254-17-007; -0034; -052; -053; -084; -095; 241-04-006; -007; 241-03-020
		Project Manager: Lesley Xavier
PROJECT DESCRIPTION: General Plan amendment request to change the Land Use/Transportation Diagram designation from Combined Industrial/Commercial on 94.8 acres, Light Industrial on 17 acres and Public Park/Open Space on 8.4 acres to Transit Corridor Residential (20+ DU/AC) on 69.4 acres, Medium Density Residential (8-16 DU/AC) on 8 acres, Combined Industrial/Commercial on 20 acres, and Public Park/Open Space on 22.8 acres, and a flexible land use boundary.
Location: Both sides of Berryessa Road, between the Union Pacific Railroad tracks to the east and the Coyote Creek to the west.		Acreage: 120.2
Applicant/Owner: The Schoennauer Company/The Flea Market, Inc.
General Plan Land Use / Transportation Diagram Designation: Existing Designation: Combined Industrial/Commercial (94.8 acres), Light Industrial (17 acres), Public Park/Open Space (8.4 acres) Proposed Designation: Transit Corridor Residential (20+ DU/AC) (69.4 acres), Medium Density Residential (8-16 DU/AC) (8 acres), Combined Industrial/Commercial (20 acres), and Public Park/Open Space (22.8 acres), and a flexible land use boundary
EXISTING ZONING DISTRICT(S): A(PD), IP, A
Surrounding Land Uses and General Plan DESIGNATION(S):
North: Single-family residential – Medium Density Residential (8-12 DU/AC) (Berryessa Planned Community)
South: Light industrial buildings/offices – Light Industrial
East: Distribution Facility, Union Pacific Railroad tracks, office buildings – Industrial Park
West: Coyote Creek, asphalt/gravel plant and other industrial uses – Public Park/Open Space and Heavy Industrial
ENVIRONMENTAL REVIEW STATUS: San Jose Flea Market General Plan Amendment Environmental Impact Report – Pending
PLANNING STAFF RECOMMENDATION: Transit Corridor Residential (20+ DU/AC) on 58.4 acres, Medium Density Residential (8-16 DU/AC) on 8 acres, Combined Industrial/Commercial on 31 acres, Public Park/Open Space on 22.8 acres, and Floating Public Park/Open Space.	Approved by: Date:
PLANNING COMMISSION RECOMMENDATION:
CITY COUNCIL ACTION:
CITY DEPARTMENT AND PUBLIC AGENCY COMMENTS RECEIVED:
§ Traffic Impact Analysis memo, Department of Transportation § Public Works memo, Development Services Division
GENERAL CORRESPONDENCE:
§ San Jose Silicon Valley Chamber of Commerce § Santa Clara County Housing Action Coalition § Silicon Valley Manufacturing Group § Santa Clara and San Benito Counties Building and Construction Trades § Santa Clara Valley Water District § Greenbelt Alliance § Blossom Valley Construction, Inc.

ANALYSIS AND RECOMMENDATIONS:

PROJECT DESCRIPTION

This is a privately initiated General Plan amendment to change the San Jose 2020 General Plan Land Use/Transportation Diagram designation from Combined Industrial/Commercial on 94.8 acres, Light Industrial on 17 acres and Public Park/Open Space on 8.4 acres to Transit Corridor Residential (20+ DU/AC) on 69.4 acres, Medium Density Residential (8-16 DU/AC) on 8 acres, Combined Industrial/Commercial on 20 acres, and Public Park/Open Space on 22.8 acres for a site located at the San Jose Flea Market on both sides of Berryessa Road between the Union Pacific Railroad (UPRR) tracks to the west and the Coyote Creek to the east (see Exhibit D).

A Bay Area Rapid Transit (BART) station is proposed south of Berryessa Road in the UPRR right-of-way. The Valley Transportation Authority (VTA) has indicated that for the purpose of obtaining Federal funding for the BART project, it is important that the City demonstrate an existing commitment to transit-oriented development in the vicinity of proposed BART stations in San Jose. The applicant is proposing a General Plan amendment at this time in order to facilitate the future development of a transit-oriented community with a mix of residential, commercial, and industrial uses. Due to the long-term nature of the BART extension project, the applicant has stated that the existing Flea Market operation is expected to continue on the site for at least five years.

BACKGROUND

The existing land use designation of Combined Industrial/Commercial allows for developments containing a mixture of compatible commercial and industrial uses. The Light Industrial land use designation is intended for a wide variety of industrial uses and excludes uses with unmitigated hazardous or nuisance effects. Typical uses within this designation are warehousing, wholesaling, and light manufacturing. The Public Park/Open Space designation is intended for open space uses for the most part.

The Combined Industrial/Commercial and the Public Park/Open Space land use designations reflect both the existing land use designations and some elements of the proposed amendment. The applicant proposes to reduce the acreage for the Combined Industrial/Commercial designation significantly and for it to remain only on a portion of the south side of Berryessa Road. The area along Coyote Creek and Penitencia Creek designated Public Park/Open Space is proposed to expand to the minimum 100-foot width consistent with the Riparian Corridor Policy.

The proposed Transit-Corridor Residential (20+ DU/AC) land use designation is a new designation for the site and permits wholly higher density residential projects or mixed-use development with neighborhood serving commercial on the first two floors and residential units above. Freestanding neighborhood commercial buildings are permitted where the development is well integrated into the project and they are located along a pedestrian pathway. The proposed Medium Density Residential (8-16 DU/AC) land use designation is also a new designation for the site and is typified by patio homes, townhouses and duplexes, but also allows a mixture of single family and apartment units.

The proposed mix of land use designations would allow approximately 3,900 dwelling units, 10,000 square feet of commercial uses, and 925,250 square feet of office/industrial uses.

Site and Surrounding Uses

The amendment site is located on both sides of Berryessa Road between the Union Pacific Railroad tracks to the east and the Coyote Creek to the west. The existing use of the entire site is the San Jose Flea Market, its ancillary buildings, extensive surface parking lots, and storage area. The area north of the amendment site is developed with single-family residences. The Black Mountain Water distribution facility is located to the east of the site. The Coyote Creek is to the west; across the creek are heavy industrial uses including an asphalt/gravel plant and an auto wrecking yard. On the south side of Berryessa Road surrounding uses include the Union Pacific Railroad tracks to the east with industrial buildings across the tracks. To the south is Mabury Road; across the road are industrial and commercial uses, and to the west is Coyote Creek with heavy industrial uses such as recycling facilities (see Exhibit A).

The General Plan land use designations surrounding the site generally reflect the existing land uses, and include Medium Density Residential (8-12 DU/AC) (Berryessa Planned Community) to the north, Industrial Park to the east, Light Industrial to the south, and Public Park/Open Space to the west along the Coyote Creek with Heavy Industrial west of the Creek (see Exhibit B).

BART Extension

This amendment site is located within the project area of the BART Extension to Milpitas, San Jose, and Santa Clara. In November 2001, the Santa Clara Valley Transportation Authority (VTA) Board of Directors approved the alignment for the BART extension to utilize the Union Pacific Railroad right-of-way, which extends from Fremont into northeast San Jose. In June 2002, a project description was approved including the identification of station locations. There are five stations identified in the City of San Jose, including Berryessa, Santa Clara/28^th Streets, Civic Plaza/San Jose State University, Market Street, and Diridon/Arena.

The BART extension is expected to run from the planned Warm Springs BART Station in Fremont along the Union Pacific Railroad alignment, immediately adjacent to the subject site, to 28^th/Santa Clara Streets in San Jose. The extension would then proceed underground through Downtown San Jose and terminate at the Santa Clara CalTrain Station. The Berryessa station is proposed to be located south of Berryessa Road. Station designs and parking lot alternatives including specific locations are currently under study for this BART station. (See Exhibit C)

A joint Environmental Impact Statement (EIS)/Environmental Impact Report (EIR) is under preparation to identify short-term impacts related to project construction and long-term issues of the completed project. The environmental review process is scheduled to be completed in the Spring of 2004.

ANALYSIS

Staff is recommending to change the land use designation on the site to Transit Corridor Residential (20+ DU/AC) on 58.4 acres, Medium Density Residential (8-16 DU/AC) on 8 acres, Combined Industrial/Commercial on 31 acres, Public Park/Open Space on 22.8 acres, and Floating Public Park/Open Space on both sides of Berryessa Road (see Exhibit E). This recommendation is different from that of the applicant’s request (see Exhibit D) in two respects: (1) the staff recommendation has increased the number of acres of Combined Industrial/Commercial by 11 acres, thereby reducing the amount of Transit Corridor Residential (20+ DU/AC), and (2) staff is recommending the floating park designation. The analysis below discusses the issues associated with the proposed land use changes.

Land Use Compatibility

The recommended land uses are compatible with surrounding land uses. The proposed Medium Density Residential (8-16 DU/AC) land use designation located along the northern border of the site would provide a transition and buffer between the adjacent existing single-family neighborhood and the proposed Combined Industrial/Commercial and Transit Corridor Residential (20+ DU/AC) land use designations.

The proposed 100-foot wide band of Public Park/Open Space located along the Coyote Creek would provide a partial buffer for the Heavy Industrial land uses west of the creek. At the development stage, measures should be employed in the new Medium Density Residential development to ensure a compatible interface between the industrial and residential activities. These measures could be sound attenuation or other features.

The additional 11 acres of Combined Industrial/Commercial (north of Berryessa Road) is intended to create a more compatible edge with the larger heavy industrial area west of Coyote Creek. This would better protect the new and existing residential land uses from the existing heavy industrial uses and not hinder the long-term viability of the industrial area.

On the south side of Berryessa Road, the proposed expansion of the Public Park/Open Space land use designation along the Coyote Creek would not only provide for recreational opportunities and open space, but would also provide a partial buffer for the proposed residential uses on the site from the heavy industrial uses west of the Coyote Creek. Additional measures (e.g., sound mitigation) should be built into any new residential development to retain the viability of the heavy industrial and create a livable residential community.

The Combined Industrial/ Commercial land use designation located at the southern border of the site is compatible

with the surrounding heavy and light industrial land uses. The Combined Industrial/ Commercial land use designation would also provide an additional buffer between the proposed residential uses located adjacent to it along the southern side of Berryessa Road and the industrial uses located on the south side of Mabury Road. Site specific densities, design, and uses would be determined at the zoning stage based on compatibility with surrounding land uses and conformance with General Plan policies.

All of the recommended land use designations for the site are also compatible with each other. They provide the opportunity to integrate uses by allowing wholly residential projects or projects with commercial uses at street level in conjunction with higher density residential uses on upper floors, and a mixture of compatible commercial and industrial uses, including office uses.

Transit Corridor Residential Land Use

The proposed land use change to Transit Corridor Residential (20+ DU/AC) on a significant portion of the subject site is consistent with the General Plan’s Major Strategies, Goals and Policies, which promote infill and transit-oriented development. This large site provides for a unique mix of land uses, all of which should be pedestrian friendly and oriented to the BART station. The Transit Corridor Residential (20+ DU/AC) designation would support BART and the General Plan’s long-standing intent to intensify at major transit stations. The land use change would be consistent with General Plan Residential Land Use Policy #3, which states that higher residential densities should be distributed throughout the community.

A staff initiated Text amendment proposes to add the Bay Area Rapid Transit (BART) Station Area Nodes as a Special Strategy Area in conjunction with the Transit-Oriented Development Corridors Special Strategy Area (see staff report for GP02-T-08). In this Text amendment, staff is proposing specific language to guide development at the Berryessa Station area, including the Flea Market site. For the Flea Market site, residential densities should be most intense near the station, and the overall site should achieve a density of 55 DU/AC.

Combined Industrial/Commercial Uses

The staff recommendation proposes to retain approximately 31 acres of Combined Industrial/Commercial on the subject site. The Combined Industrial/Commercial designation is a broad designation allowing compatible commercial and/or industrial enterprises. Given the proximity of the BART station, it is expected that development under this designation would be fairly intense and result in higher employment densities than are typical to this designation. For example, specific uses could include multi-story office or research and development buildings, but not corporation yards. To reinforce the need for transit-friendly and relatively intense job-generating uses on this site, the proposed text amendment (GP02-T-08) articulates appropriate land uses, general development parameters, and phasing of jobs and housing in the Berryessa BART station area. This text amendment proposes to add BART Station Area Nodes as a Special Strategy Area to the General Plan, reinforcing the City’s commitment to smart growth planning and transit-oriented development.

The proposed Combined Industrial/Commercial land use designation is consistent with Industrial Land Use Policy #12, which states that employee intensive uses should be encouraged to locate near transit facilities. In addition, new commercial/industrial development would provide for a variety of job generating uses that would be located near the BART transit facility, which would minimize the need for automobile travel not only for the employees of the area, but potentially for the residents that would result from the proposed Transit Corridor Residential (20+ DU/AC) land use designation as well.

Creeks, Trails, Parks and Open Space

The amendment site is located along the Coyote Creek and the Penitencia Creek. The City Council adopted Riparian Corridor Policy Study provides the City information to identify and manage its riparian resources in an environmentally sensitive manner to protect them for environmental as well as recreational purposes. The Riparian Corridor Policy states that development adjacent to riparian habitats generally should be set back 100 feet from the outside edge of the riparian habitat dripline. The amendment proposes 22.8 acres of Public Park/Open Space to be designated along both creeks, which approximately defines the 100-foot riparian setback area. Therefore, the amendment proposal is consistent with the Riparian Corridor Policy.

Both Coyote and Penitencia Creeks are designated on the General Plan’s Scenic Routes and Trails Diagram as Trails and Pathway Corridors. In addition, both creeks are identified as proposed trail routes in the City’s “Greenprint” parks masterplan. The “Greenprint”, which was adopted by the City Council in September of 2000, is a twenty-year strategic plan that provides specific, community supported action plans for future parks, community facilities, and programs in San Jose. General Plan Trails and Pathways Policy #1 states that the City should control land development along designated Trails and Pathway Corridors in order to provide sufficient trail right-of-way and ensure that new development adjacent to the corridors does not detract from the scenic and aesthetic qualities of the corridor. The proposed amendment would recognize future trail development by designating creek corridors as Public Park/Open Space.

In addition to the park acreage proposed along the riparian corridors, staff is recommending a Floating Public Park/Open Space land use designation for property on both sides of Berryessa Road. The City’s Parkland Dedication Ordinance requires all residential development to dedicate land or pay in-lieu fees towards the provision of park facilities for any net increase in residential units. Typically, in-lieu fees are paid for projects consisting of less than 50 new dwelling units. The proposed change to Transit Corridor Residential (20+ DU/AC) and Medium Density Residential (8-16 DU/AC) would add a significant number of new residents to the area. Staff is recommending the placement of a “floating” Public Park/Open Space designation on the site to identify the City’s preference for on-site parkland. To provide flexibility, the Public Park/Open Space designation is “floating” on the property and does not specify a particular location or acreage. The amount of required parkland would be based upon the Parkland Dedication Ordinance and the number of dwelling units proposed at the zoning stage. The location of the park should be determined in the context of an overall “master plan” for the entire property. The application of the floating park designation is consistent with the General Plan Parks and Recreation Goal #1 which states that the City should consider, as an objective, the provision of a neighborhood community park within a reasonable walking distance for each resident.

Citywide Policy Issues

The San Jose 2020 General Plan has seven Major Strategies that identify the underlying principles of the Plan. Of those seven, this amendment directly relates to four of them: Economic Development, Growth Management, Housing, and Sustainable City. The proposed amendment is consistent with the Economic Development Major Strategy that encourages more commercial and industrial growth to balance existing residential development. The proposed amendment would create additional jobs, therefore promoting economic development. The proposed amendment is supportive of the Growth Management Major Strategy that seeks to find the balance between the need to house new population and the need to balance the City’s budget, while providing acceptable levels of service. The amendment site is located within an area where urban facilities and services are already available; infill development on this site supports the intent of the Growth Management Major Strategy. The proposed amendment is also supportive of the Housing Major Strategy that seeks to maximize the housing opportunities on infill parcels already served by municipal services. A change in the land use designation to Transit Corridor Residential (20+ DU/AC) on a portion of the site would allow for more housing units on this infill site. The Sustainable City Major Strategy seeks to reduce traffic congestion, pollution, wastefulness, and environmental degradation of the living environment. The amendment site is located along the BART extension to Milpitas, San Jose, and Santa Clara. The proposed Berryessa station is planned to be located at the site. Locating development in already urbanized areas and around transit contributes to sustainability by shortening trip lengths and providing for the availability of different modes of transportation such as public transit, biking, and walking. This in turn helps to conserve energy and improve air quality.

Environmental Issues

The San Jose Flea Market General Plan Amendment Environmental Impact Report (EIR) was prepared in conformance with the California Environmental Quality Act (CEQA). The EIR provides program level environmental review appropriate for the adoption of the proposed amendment to the San Jose 2020 General

Plan. The EIR analyzed impacts and proposed mitigation measures, where possible, on the following items:

§ Land use

§ Geology and soils

§ Hydrology

§ Biological resources

§ Transportation

§ Air quality

§ Noise

§ Cultural resources

§ Hazardous materials

§ Utilities and service systems

§ Energy

The EIR identified two significant and unavoidable impacts: transportation and air quality.

The General Plan has many policies that can help mitigate the transportation and air quality impacts. However, should the site be built out prior to the completion of the BART extension project from Fremont to the cities of Milpitas, San Jose, and Santa Clara, the proposed land use changes would result in significant unavoidable long-term traffic impacts. Air quality is considered a significant unavoidable impact because the project proposes additional population that is not reflected in the Bay Area Air Quality Management District (BAAQMD) regional Clean Air Plan. The inclusion of identified mitigation measures would reduce the impacts on regional air quality, but because the proposed General Plan amendment would add population not already reflected in the regional Clean Air Plan, the air quality impacts of their approval would still be considered a significant impact.

Public Outreach

The property owners within the amendment site boundaries and/or property owners within a 1000-foot radius of the amendment site were sent a newsletter regarding two General Plan community meetings that were held on October 8^th and 10^th, 2002. They also received a public hearing notice regarding the public hearings to be held on the subject amendment before the Planning Commission in August and City Council in September. In addition, the community can be kept informed about the status of amendments on the Department's web-site, which contains information on the General Plan process, each proposed amendment, staff reports, and hearing schedule. No comments were received on this specific amendment at any of the community meetings.

At BART community meetings, Flea Market tenants inquired about the timing of new development. Flea Market representatives stated that no new development was expected for at least five years.

RECOMMENDATION

Planning staff recommends Transit Corridor Residential (20+ DU/AC) on 58.4 acres, Medium Density Residential (8-16 DU/AC) on 8 acres, Combined Industrial/Commercial on 31 acres, Public Park/Open Space on 22.8 acres, and Floating Public Park/Open Spaces on both sides of Berryessa Road.

EXHIBIT A

Amendment Site

	Single-Family Residential

		Single-Family Residential
			Flea Market Parking
							Industrial Park
						Flea Market
				Industrial

EXHIBIT B

Existing General Plan Land Use Designations

EXHIBIT C

EXHIBIT D

Applicant Request

EXHIBIT E

Staff Recommendation