CC SR 20210824 01 - Housing Element Update Study Session Report
RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 08/24/2021
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Conduct a joint study session between the City Council and the Planning Commission
regarding the 2021-2029 Housing Element Update.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file a report and presentation on the status of the City’s Housing
Element Update;
(2) Receive public input, discuss and provide Staff with direction on the Housing
Element Update options to address the City’s 6th Cycle Regional Housing Needs
Assessment (RHNA) allocation;
(3) Review and authorize the issuance of the proposed Housing Element Update
Community Survey:, and,
(4) Direct Staff to bring back an amendment to the Professional Services Agreement
with Piasky Solutions to consider expanding the feasibility analysis along Western
Avenue
FISCAL IMPACT: There is no fiscal impact associated with this action.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Octavio Silva, Deputy Director/ Planning Manager
REVIEWED BY: Ken Rukavina, PE, Director of Community Development
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft Community Survey (page A-1)
B. Housing Element Update Schedule (page B-1)
C. Western Avenue Opportunity Site Analysis Report (page C-1); also
available for review here.
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BACKGROUND AND DISCUSSION:
This joint Housing Element Study Session conducted by the City Council and Planning
Commission is the first of three public meetings intended to engage the City Council,
Planning Commission and the public as the City works toward updating the Housing
Element to meet the existing and projected housing needs of all economic segments of
the community pursuant to the City’s Regional Housing Needs Assessment (RHNA)
allocation.
Topics to be presented and considered during this joint study session will include:
• Housing element overview
• Presentation from HCD regarding housing element law and the requirements for
the 6th cycle housing element update
• RHNA Plan prepared by SCAG
• Developing regulations to accommodate the RHNA allocation in all income
categories
• Seek City Council, Planning Commission and public input on potential options to
address the City’s RHNA allocation such as up-zoning, ADUs, streamlined permit
processing, etc.
• Review of public survey questions
Representatives from the California Department of Housing and Community
Development (HCD) will be in attendance along with the Housing Element Update
consultant team and Piasky Solutions, the consultant preparing a redevelopment
feasibility analysis along Western Avenue.
Housing Element Overview
The Housing Element is a state-required chapter in the City of Rancho Palos Verdes
General Plan. The Housing Element identifies the City’s housing conditions and needs ;
establishes goals, objectives, and policies that are foundational to the City’s housing
strategy; and provides an array of programs to create sustainable, mixed -income
neighborhoods across the City. One way the Housing Element affects housing supply is
by setting specific housing production targets as part of the City’s RHNA allocation. This
will be the state’s sixth eight-year planning cycle (October 2021 to October 2029).
The components of the Housing Element are largely dictated by the state and must
include:
• Existing Conditions: A detailed analysis of the City’s demographic, economic and
housing characteristics.
• Barriers to Housing: A comprehensive analysis of the barriers to producing and
preserving housing.
• Current Policies: A review of the City’s progress in implementing current housing
policies and programs.
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• Proposed Policies: An identification of goals, objectives, and policies, in addition
to a full list of programs that will implement the vision of the plan.
• Sites Inventory: A list of sites (aka the Suitable Sites Inventory) that could
accommodate new housing, demonstrating the City’s ability to meet the quantified
housing number established in the RHNA.
A requirement for the Housing Element Update is to incorporate means of affirmatively
furthering fair housing (AFFH). This will include assessing and developing program s and
actions to address institutional and systemic racial and socioeconomic disparities in
housing as mandated by the state. To accomplish this, Staff will incorporate AFFH
guidance established by HCD, including an evaluation of the following topics:
• Housing Mobility
o Housing Options and Locational Choices
o Use of Housing Choice Vouchers
• Displacement and Gentrification
o Tenant Protection
o Neighborhood Stabilization
• Segregation
o Race, Income, Disability, and Housing for Families
o Access to Opportunities and Resources
The HCD is the regulatory agency that reviews and certifies Housing Eleme nts for
compliance with state law. It is required by law to be updated and approved (certified) by
the state every eight years. In the worst-case scenario, if a city’s Housing Element is not
certified, the state can take jurisdiction over the City’s zoning and land use decisions.
RHNA Overview
RHNA is a representation of existing and future housing needs for all income levels in a
jurisdiction (city or unincorporated county) and is a requirement of California housing law.
The objectives of RHNA include:
• Increasing housing supply and mix of housing types, tenure and affordability
• Promoting infill development and socioeconomic equity, protection of resources
and encouraging efficient development patterns
• Improving an intraregional relationship between jobs and housing
• Allocating a lower proportion of housing need in income categories in areas that
have a disproportionately high share in comparison to the county distribution
• Affirmatively furthering fair housing
The Southern California Association of Governm ents (SCAG) is the organization tasked
with developing a RHNA allocation plan for the Southern California region. SCAG is the
nation’s largest metropolitan planning organization, which represents six counties and
191 cities, including the City of Rancho Palos Verdes.
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The City of Rancho Palos Verdes is currently in the 5th Cycle RHNA, which covers the
planning period between the years 2013-2021. As part of the current cycle, the City’s
RHNA allocation is a total of 31 housing units in various income levels. The City is
required to provide annual RHNA progress reports to HCD. In 2020, the City reported the
completion of 23 housing units with eight remaining that need to be planned for by the
end of 2021. Those units not accommodated in this present cycle will be required as part
of the 6th Cycle RHNA.
A major factor in this Housing Element Update is planning for the ability to accommodate
housing units required as part of the City’s RHNA allocation for the 6th Cycle RHNA. The
City’s 6th Cycle RHNA allocation is as follows:
Income Category Number of Units
Very Low 253
Low 139
Moderate 125
Above Moderate 122
Total 639
The City’s RHNA allocation is a significant increase from the City’s current 5th Cycle
RHNA allocation of 31 housing units for the 2013-2021 planning period. This most recent
allocation consists of two components, which includes a projected housing need of 24
units that were derived from the City’s direct input to SCAG and 615 units that were
identified by SCAG as an existing housing need for the region.
The City’s RHNA allocation is a minimum number assigned by the state to meet regional
housing goals. RHNA does not require the City to build the units; the City must
ensure there are no governmental or other barriers preventing the units from being
built by a private developer. These units must be planned for in the Housing Elem ent
through the Sites Inventory, which identifies locations where housing units can be
developed. The most common way for jurisdictions to demonstrate the ability to
accommodate their RHNA for very-low and low-income households is to identify sites that
can be redeveloped at the “default minimum densities” set by state law for lower-income
housing (30 dwelling units per acre for metropolitan jurisdictions with more than 25,000
population).
Rancho Palos Verdes Housing Element Update Process
On March 3, 2021, the City Council authorized a professional services agreement (PSA)
with Environmental Sciences Associates (ESA) along with subconsultants BAE Urban
Economics and MBI Media to assist Staff with the Housing Element Update. Staff and the
consultant team created a road map for implementing this project, which includes a
comprehensive public outreach component. This City Council and Planning Commission
joint study session is a critical first step in collecting the necessary public input to establish
the Housing Element Update framework. At this point in the update process, Staff
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requests initial input from the City Council and Planning Commission regarding 1) zoning
options to meet the 6th Cycle RHNA allocation and 2) a community engagement survey.
Both are discussed in greater detail below.
1) Zoning Options to Meet the 6th Cycle RHNA Allocation
• Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units
(JADUs)
Early in 2021, the City adopted Ordinance No. 640, thereby updating the City’s
ADU and JADU Ordinance, which established development standards
(allowable floor areas, height, parking, lot coverage and setbacks) for such
improvements. As a substantial portion of the City is located in a Cal Fire-
designated Very High Fire Hazard Severity Zone, the standards ensure that
ADUs and JADUs are developed and operated on adequate sites, at proper
and desirable locations, and that the goals and objectives of the General Plan
are observed.
On February 10, 2021, staff submitted a copy of Ordinance No. 640 to the HCD
for review pursuant to California State Government Code. On May 21, HCD
submitted findings of their review of the City’s updated ordinance. Staff’s
response was submitted to HCD on June 18; HCD review of the City’s response
is still in progress.
The City’s current Housing Element identifies ADUs as an opportunity to meet
the City’s affordable housing requirements under RHNA. However, a
jurisdiction must include an analysis of the anticipated affordability of ADU s to
determine which RHNA income categories they should count toward. SCAG
conducted an analysis to provide local jurisdictions with assumptions for ADU
affordability that can be used to assign ADUs to income categories for the
purpose of the 6th Cycle Housing Elements, a copy of which is avaliable to
review on the City website.
Another consideration in determining how much of the City’s future ADU and
JADU development will count toward the City’s 6 th Cycle RHNA allocation is
the City’s track record in permitting ADUs in recent years. For example, cities
are able to assume that future ADU production will be consistent with historic
trends (i.e., average ADUs permitted per year), but it is difficult to build a case
that ADU development will increase substantially from recent trends.
• Mixed-Use Overlay Zoning District
A second option to accommodate a portion of the City’s RHNA allocation is
through the preparation and implementation of a mixed-use overlay zoning
district. On April 6, 2021, the City Council authorized executing a PSA with real
estate and development consulting firm Piasky Solutions to conduct a feasibility
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analysis of potential mixed-use development opportunities along Western
Avenue’s commercial zoning district, consisting of 18 parcels. This was part of
an effort to accommodate the RHNA goals for the next planning cycle by
identifying and/or eliminating potential sites for consideration and gauging how
many units may be feasible on a potential site. A final report (Attachment C) on
the selected 18 parcels along Western Avenue can be reviewed on the City
website. The report recommends several sites that have potential for higher
density over others. With the City Council’s direction, the PSA may be amended
to expand the feasibility analysis to explore 11 additional parcels on Western
Avenue and Silver Spur Road, which can be brought to the City Council in
September.
Aside from identifying potential sites, the results from the feasibility analysis will
also serve as a basis in establishing a mixed-use overlay zoning district within
some of the City’s commercial zones. In April 2020 and April 2021, the City was
awarded two grant funds (i.e., Senate Bill No. 2 and Local Early Action
Planning) administered by HCD to update planning documents and implement
process improvements that will facilitate the acceleration of housing production
to help prepare for the 6th Cycle RHNA. At this time, Staff is working on retaining
a planning consultant to create relevant development standards and
guidelines, as well as prepare a program-level California Environmental Quality
Act (CEQA) document. The process of establishing a mixed-use overlay zoning
district will include a series of public outreach efforts in the future and is
anticipated to be adopted in early 2023.
• Vacant & Underutilitzed Sites
Another option to consider in accommodating the City’s RHNA allocation is
development opportunities on vacant and underutilized sites throughout the
City. SCAG developed a web-mapping tool to help local jurisdictions and
stakeholders understand local land use, site opportunities, and e nvironmental
sensitivities for aligning housing planning with the HCD’s 6th Cycle Housing
Element requirements. Staff and consultants utilized this tool to preliminarily
identify potential vacant and underutilizied commercial and residential zoned
sites throughout the City and then conduct further follow-up assessment of
individual properties, including identification of additional sites that did not show
up in the SCAG database. Staff and consultants are reviewing and refining the
list of approximately 51 sites for potential inclusion in the Housing Element
Update’s RHNA sites inventory and to ensure that site are not deed-restricted
preserve/open space areas or properties in the City’s Landslide Moratoirum
Area.
Based on the above, Staff seeks City Council and Planning Commission direction
on what options to include in the Housing Element Update.
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2) Community Engagement
Community engagement is an essential component of the Housing Element
process. Staff, along with the consultant team, developed a comprehensive
community engagement approach that includes, but is not limited to, community
meetings, stakeholder interviews, social media and digital outreach tools, which
are described below:
• Community meetings: The Housing Element Update process includes two
hybrid in-person/virtual community meetings and one virtual-only meeting to
maximize participation, stimulate discussion and promote feedback regarding
the update process. The meetings will be designed to ensure a safe,
comfortable and engaging environment for attendees, adhering to ongoing
public health policies and dependent on COVID-19 regulations.
• Stakeholder interviews: Beginning in September 2021, the consultant team will
conduct 16 virtual stakeholder interviews to better understand community
needs associated with fair housing, gain deeper insight into community housing
needs and to understand developer perspective regarding opportunities and
challenges in residential development.
• Social media: To create online community dialogue regarding the Housing
Element Update process, the consultant team is proposing a robust social
media approach over a wide range of social media platforms including, but not
limited to, Facebook, Instagram, Twitter, Nextdoor and the MyRPV app. These
media platforms will also provide an opportunity to share upcoming workshop
details as well as other resources.
• Digital outreach tools: The Housing Element Update process also includes an
online engagement presence including a website and community survey tool.
The website is available at rpvca.gov/housingelement and will provide regular
updates to the process, background information draft documents and additional
opportunities for public participation.
• Community Survey: To collect additional input from the public and interested
parties, the consultant has prepared a set of standard survey questions for the
Housing Element Update (Attachment A). Per City Council Policy No. 2, Staff
requests the City Council review and authorize the proposed community survey
so the City can use this information collection tool. The community survey will
allow the public to register anonymous comments and ideas on a wide range
of housing issues including, but not limited to, housing challenges, deficiencies
and priorities. The survey will be available in a digital format and hard copies
will be available for pick-up at the City Clerk’s Office and Community
Development Department Office. The online survey can be conducted using
the City’s existing SurveyMonkey subscription, which was paid for in 2020 to
conduct the RPV Citizen Satisfaction Survey.
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Projected Housing Element Update Schedule
A project schedule outlining the City’s Housing Element Update process has been
attached to this report (Attachment B). Staff will continue to refine the schedule as the
update process continues, and keep the timeline posted in real time on the City’s Housing
Element webpage.
Key project actions and dates over the next two months include the following:
Action Description
Date
Issuance of Community Survey August 2021
Anticipated Stakeholder Interviews September 2021
Anticipated Virtual Community Meeting October 2021
Environmental Assessment
Documentation - Circulation of Notice of
Intent to Adopt a (Mitigated) Negative
Declaration (30-day review period)
November/December 2021
State law requires the City to update and submit its Housing Element to HCD for
certification by October 15, 2021. Based on the current project timeline, the City’s 6th
Cycle Housing Element will not be certified by this date. However, the current project
timeline is focused on adoption of the Housing Element Update within 120 days of this
deadline to avoid the penalty of a four-year Housing Element Update for two cycles, as
required by Senate Bill No. 375. State law automatically provides the 120 day provision,
considering that the City follows the State’s Housing Element Update procedures. Based
on the the schedule developed at onset of this project, we are currently meeting
milestones to remain on track for submitting the final housing element to HCD for review
and conducting the final City Council hearings within the 120 -day provisional period.
Environmental Assessment
As part of the Housing Element Update process, the consultant team will complete an
environmental assessment of the proposed project in accordance with the CEQA to
address potential impacts associated with the update. As the proposed project does not
include any specific construction or development activities, but rather the potential for
land use changes or development to be constructed in the future in accordance with the
update to the Housing Element, the City anticipates a Mitigated Negative Declaration
(MND) or Negative Declaration (ND) will be the appropriate document under CEQA. The
MND will contain an evaluation of the potentially significant environmental impacts of the
proposed project and will identify feasible mitigation measures that may lessen or avoid
such impacts, if necessary.
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CONCLUSION:
The City’s Housing Element Update is a critical component to ensure that the housing
needs of existing and future residents can be met , as well as to help build a safe,
equitable, sustainable and thriving community. By maintaining a compliant and state-
certified Housing Element, the City will remain eligible and competitive for state grant
funding opportunities that ultimately help the City in implementing its housing strateg ies.
This joint study session is an opportunity for the City Council, Planning Commission and
public to provide feedback to Staff in advance of future adoption hearings.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the City Council’s consideration:
1) Direct Staff/consultant to draft additional survey questions and return to the City
Council no later than the September 7, 2021, regular City Council meeting.
2) Identity additional options to explore to address the City’s RHNA allocation.
3) Take other action, as deemed appropriate.
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Community Survey
The City of Rancho Palos Verdes is updating the Housing Element of the
General Plan as required by the State of California. The purpose of the
Housing Element is to assist local governments in the planning process to
address current and future housing needs for the community. We invite you
to participate in the Housing Element Update by answering the following
questions. This survey will remain active from August 25, 2021, through
4:00 p.m. on September 24, 2021.
Completed surveys may be left with the Community Development
Department, emailed to housingelement@rpvca.gov or mailed to:
City of Rancho Palos Verdes
Attn: Octavio Silva
30940 Hawthorne Blvd
Rancho Palos Verdes, CA 90275
Please check the box that best answers each question. All responses
to this survey are confidential. Survey responses will only be reported
cumulatively to ensure the anonymity of all respondents.
1. Do you live in the City of Rancho Palos Verdes?
Ye s No
2. How long have you lived in Rancho Palos Verdes?
1 – 5 Years 6 – 15 Years
16 – 30 Years More than 30 Years
3. Do you currently own or rent your home in Rancho Palos
Verdes?
Own Rent Not Applicable
4. Select the type of housing that best describes your current
home in Rancho Palos Verdes:
Single Family
Duplex
Multifamily Home (Apartment/Condominium)
Senior Living Facility
Other (Mobile home, Accessory Dwelling Unit,
Guest House, etc.)
Not applicable
5. Are you satisfied with your current housing condition in
Rancho Palos Verdes?
Yes No Not applicable
If no, please explain:
__________________________________________________
City of Rancho Palos Verdes 6th
Housing Element Survey
6. Are you currently experiencing any type of housing problems
in Rancho Palos Verdes? Please check all that apply:
Housing costs represent more than 30 percent of my income
(combined with the income of other household members)
Housing costs represent more than 50 percent of my income
(combined with the income of other household members)
My housing unit is in poor condition
My housing unit is too small for the size of my household
I am experiencing housing discrimination
Not applicable
Other (please describe)
___________________________________________________
7. Do you believe the City of Rancho Palos Verdes has an
adequate supply of multifamily housing?
Yes No
8. Do you own other residential (other than your primary
residence) or commercial properties in Rancho Palos Verdes?
No Ye s
9. What should be the City’s focus as part of the Housing
Element Update process? Select all that apply:
Maintain existing housing
Higher density multifamily housing, such as apartments
Provide more affordable housing options
Encourage construction of Accessory Dwelling Units (ADUs) and
Junior Accessory Dwelling Units (JADUs) on all family lots
Increase availability of housing options for seniors
Increase accessibility of housing for persons with disabilities
and/or special needs
Redevelop underutilized parcels in commercial areas to include
higher density housing
Incentivize and encourage the development of vertical, mixed-
use units in Commercial Zones
Incentivize and promote deed-restricted affordable units
Create affordable housing policies and programs that address
equity (fairness) and equality (sameness)
10. Rank the following housing priorities by importance, with 1
being the highest priority and 6 being the lowest:
Providing a range of affordable housing opportunities
Increased housing for seniors
Accessible housing for people with disabilities and/or
special needs
Conservation of existing housing stock
Preservation of nature preserve and open space areas
Minimizing governmental constraints to development or
maintenance of housing
11. What areas in the City are appropriate for new Housing?
Select all that apply:
In commercial areas (as part of a new mixed-use developments)
In commercial areas (as new home developments)
On existing single-family properties as ADUs and/
or JADUs
On existing single-family properties as duplexes or
triplexes
On underutilized lots, where additional
development could be accommodated
On vacant lots
None of the above
A-1
12. Rank what you consider the biggest challenges to
increased housing in Rancho Palos Verdes, with 1 being the
most challenging and 7 being the least challenging:
High cost of land
Not enough public funds to subsidize development of
affordable housing
Low supply of vacant land
Non-flexible development standards or fees
Public opposition
Lack of adjoining parcels that could be consolidated into larger
parcels for redevelopment
Traffic congestion
13. What types of incentives would the City offer to encourage
development of more housing? Select all that apply:
Floor Area Ratio (FAR) Bonus (Increased square
footage allowances)
Increased height allowances (taller structures)
Reduced parking requirements
Permit and fee reductions
Offer public funds to subsidize the development of
affordable housing to help address fair housing
Increased density allowances (i.e., allow increased
dwelling units per acre)
Reduced setbacks requirements
Other (please explain)
__________________________________________________
14.Would you support residential density increases in portions
of the City? Please select the option that best expresses your
view:
No, I would not support any density increases
Yes, in or near commercial areas, or in multifamily
residential zones only
Yes, anywhere within the City
Additional Comments
___________________________________________________
15. Do you support allowing properties currently zoned for
single-family residences, to be developed with multiple
dwelling units? Select one:
No
Yes
Yes, but only two or three additional units
___________________________________________________
16. Have you experienced housing discrimination when either
buying or renting housing in Rancho Palos Verdes? If yes,
please select any of the discrimination types that apply:
Religion
National origin
Color
Sex
Family status
Disability
No, I have never experienced housing discrimination in
Rancho Palos Verdes.
Other (please specify)
__________________________________________________
17. If you wish to become a first-time homeowner in the City
of Rancho Palos Verdes, what issues are preventing you from
purchasing at this time? Select all that apply:
Home prices in Rancho Palos Verdes
Home loan costs
Household income
Low inventory of housing for seniors
Limited Fair Housing Services to address discrimination
and fraud
Low inventory of housing for persons with disabilities
Limited home inventory in Rancho Palos Verdes
Other, please explain
___________________________________________________
Questions 18 – 22 are optional.
18. What is your age? Please select from the options below.
Under 18 years 18-24
25-34 35-44
45-54 55-64
65+
19. In addition to yourself, how many other people share your
dwelling unit with you:
___ additional persons under 18 years (enter “0” if you live alone)
___ additional persons aged 18 and over (enter “0” if you live
alone)
20. What is your total household income (per year)?
Less than $40,000 $40,000 to $69,999
$70,000 to $99,999 $100,000 to $149,999
$150,000 to $200,000 More than $200,000
21. Please indicate the group below which best applies to you:
African American
Caucasian
East Asian (e.g., Chinese, Japanese, Korean)
Latin, (South or Central American)
Caribbean Islander
Pacific Islands (e.g., Fijian, Polynesian)
South Asian (e.g., East Indian, Pakistani, Sri Lankan,
Bangladeshi)
Southeast Asian (e.g., Burmese, Cambodian, Filipino,
Laotian, Malaysian, Thai, Vietnamese)
West Asian (e.g., Arab, Armenian, Iranian, Israeli,
Lebanese, Palestinian, Syrian, Turkish)
Multiracial/ethnic
Other (please specify)
__________________________________________________
22. Include your contact Information below to be included in
future Rancho Palos Verdes communication about the Housing
Update.
Name:
__________________________________________________
Email:
__________________________________________________
Mailing Address:
__________________________________________________
Phone:
__________________________________________________
A-2
Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52
1. Project Administration
1.1 Project Kick-Off Meeting 1 week
1.2 Project Schedule Development 2 weeks
1.3 Project Coordination Ongoing
2. Housing Element Amendment Assessment and Analysis
2.1 Review 2014-2021 Housing Element 6 weeks
2.2 Housing Assessment & Needs Analysis 11 weeks
2.3 Adequate Sites Analysis and Constraints 21 weeks
2.5 Housing Goals, Policies, and Quantified Objectives 8 weeks
3. Public Engagement (Assume MND)
3.1 Public Engagement Program Development Ongoing PM PM PM
3.2 Stakeholder Interviews 5 weeks
(PM = public meeting)
4. Planning Commission and Council Workshops 3 meetings P/C P C
(P=Planning, C=Council)
5. Facilitate Review and Approval of Housing Element
5.1 Administrative Draft Housing Element Update
Draft submitted and revisions made 8 weeks
5.2 Public Draft Housing Element Update
Prepare Public Review Draft 4 weeks
Request Informal HCD Review 4 weeks
Public Review Period 5 weeks
6. Environmental Analysis (Assume MND)
6.1 General Plan Amendment 4 weeks
6.2 Environmental Determination 4 weeks
6.3 Draft Initial Study/Mitigated Negative Declaration (IS/MND)5 weeks
6.3 Environmental Noticing, Outreach and Filing Ongoing
6.4 Final Draft of Environmental Analysis 4 weeks
7. Public Hearings 2 meetings PC CC
8. Final Housing Element Update
Prepare Revised Housing Element 1 week
Submit to HCD for Formal Review 9 weeks
Revise in Response to HCD Comments 2 weeks
Prepare Final Housing Element and Env Documentation 7 weeks
9. State Certification and City Adoption 2 weeks
Public Noticing As Needed
JulyMarchAprilMayJune
30-Day Public
Review
MarchFebruaryAugustSeptemberOctoberNovemberDecemberJanuary
Rancho Palos Verdes Housing Element Update Schedule
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WESTERN AVENUE OPPORTUNITY SITE
ANALYSIS REPORT
EXECUTIVE SUMMARY:
BACKGROUND:
The City of Rancho Palos Verdes (hereinafter “City”) is reviewing potential mixed-use development opportunities
along Western Avenue’s commercial zoning district to redevelop the corridor with housing components above or
integrated with commercial uses. The City hired real estate and development consulting firms Piasky Solutions
and Pacific Consulting Group, LLC to narrow the City’s focus on feasible sites for potential mixed-use
redevelopment and to provide the necessary feasibility analysis to help the City identify which sites provide the
best potential for mixed-use consideration as well as recommend viable mixed-use options that could be feasible.
The scope of this report encompasses 18 parcels identified for study by the City along the west side of Western
Avenue from 29019 to 29619 S. Western Avenue.
SCOPE OF WORK:
The Scope of Work for this project was limited to identifying potential issues, opportunities, and challenges with
each of the 18 parcels. Through this analysis, we were able to identify underutilized sites whose location, size or
surrounding uses provide the opportunity to be designated as “opportunity sites”. The data collected and
detailed results of our analysis is provided in the Exhibits that follow. An analysis of the development
considerations and factors that were used to evaluate the properties and determine whether they should be
considered an opportunity site is included in Exhibit A. A Property Feasibility Profile summary was prepared for
each of the parcels and is included in Exhibit B. Exhibit C contains a site map showing the area this study
encompasses, while a detailed Property Site Review Checklist was prepared for each parcel in the study area and
is included in Exhibit D. Exhibit E summarizes and prioritizes for housing development the sites in the Property
Site Review Checklists and Exhibit F provides various density options for the top 3 most likely housing sites
compared to current zoning restrictions. Exhibit G contains a list of recommended commercial uses for the
Western Avenue corridor. Finally, a list of example current mixed-use developments with varying densities and
heights is given in Exhibit H for reference.
SUMMARY OF FINDINGS:
Based upon interviews with potential developers and general development analysis, we established priority levels
and corresponding criteria (lot size and height allowance) and thresholds for identifying possible opportunity sites
that can include a residential component. The scope of this analysis is limited to identifying code
recommendations as well as physical opportunities and challenges to each selected site and does not include a
financial analysis of various recommended development options. While a financial analysis including market
research and proforma analysis for each parcel may result in modifications to these recommendations, the
fundamental requirements of lot size, height, density and zoning restrictions are the foundation to determining a
development’s potential feasibility.
It should be noted that the maximum buildable area and height allowance for the parcels studied is currently 50%
and 30 feet respectively per the Western Avenue Specific Plans. For this report, we assumed that the maximum
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WESTERN AVENUE OPPORTUNITY SITE ANALYSIS REPORT
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buildable area could be revised through a Mixed-Use Overlay Zone to 80% and the height allowance could be
revised to a maximum height that would not impact the residential views from above the subject parcels.
For ranking purposes, Priority 1 opportunity sites are those that do not require lot consolidation and have a
minimum 0.75-acre lot size and 60 ft height allowance. These sites would be the least complicated for
development because they are large enough for re-development on their own without consolidation with
adjacent properties and have the potential for the greatest density if height allowances are increased. Two parcels
meet these criteria. They are 29529 and 29601 S. Western Avenue. Priority 2 opportunity sites are those that
have a minimum 60 ft height allowance and can meet the 0.75-acre lot size by being combined with adjacent
parcels. Three locations meet these criteria. They are 29505, 29519 and 29619 S. Western Avenue. Priority 3
opportunity sites are those that have a minimum 32 ft height allowance and can meet the 0.75-acre lot size by
being combined with adjacent parcels owned by the same property owner. Three locations meet these criteria.
They are 29019, 29023 and 29035 S. Western Avenue.
Redevelopment of any of these properties will require Western Avenue Street improvements including
streetlights, pedestrian friendly sidewalks, and undergrounding of utilities and related structures. To help attract
and encourage development, we recommend that the City study options to provide these enhancements to the
Western Avenue corridor as opposed to a piecemeal approach provided by each developer as new development
occurs. This would provide a uniform improvement along this corridor, remove development risk and raise
property values as well as improve the marketability to potential developers. Post-redevelopment revenue or
property values will need to exceed the current cash-flow potential or property value for a property owner to be
willing to redevelop or sell the property for development. Enhancing this corridor will bring property values and
potential marketability closer to achieving those goals. Also, while not addressed in this report, traffic and density
concerns from the surrounding residents will need to be addressed. For each identified opportunity site, the
potential future market-rate and affordable housing vision for the site, including specific zoning and development
standards is summarized in Table #1 on the following page.
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TABLE #1 – OPPORTUNITY SITES
BLOCK ADDRESS OPPORTUNITY
RANKING
LOT
AREA
(AC)
RESIDENTIAL LOT
HEIGHT ABOVE
(MAX. HEIGHT)
POTENTIAL
MARKET-RATE
RESIDENTIAL
UNITS (40
du/ac)
POTENTIAL
AFFORDABLE
RESIDENTIAL
UNITS (50%
DENSITY BONUS =
60 du/ac)
1 29019 3 0.46 40 18 27
1 29023 3 0.29 35 12 18
1 29035 3 0.30 32 12 18
RANK 3
SITE
TOTALS
1.05 42 63
3 29505 2 0.55 70 22 33
3 29519 2 0.23 65 9 14
3 29529 1 0.77 60 31 46
3 29601 1 1.00 60 40 60
3 29619 2 0.43 60 17 26
RANK 1&2
TOTALS
2.98 120 179
OVERALL
TOTAL
162 242
TABLE NOTES
1. Metrics for ranking 1) Height of residential pad >60’ above and lot >0.75ac, 2) Residential pads > 60’
above, 3) Residential pads > 30’ above and same ownership of adjacent lots to allow for lot assembly >
0.75 ac.
2. Existing Specific Plan requirements related to maximum buildable area, density and height will need to be
revised from current standards to allow increased residential unit potential.
3. Parking requirements may need to be lowered to maximize residential unit potential.
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EXHIBIT A
DEVELOPMENT CONSIDERATIONS:
The following factors were used to evaluate the properties and determine whether they should be considered an
Opportunity Site.
MARKET CONDITIONS:
Mixed-use redevelopment requires market conditions that serve both commercial and residential needs. These
market conditions for commercial include traffic flow, demographics, and other factors that ultimately lead to an
understanding of supply versus demand. The properties studied are all currently commercial uses and thus a
deeper analysis of commercial viability was unnecessary for this report. Market conditions for residential that
were generally considered for this report were proximity to transit, amenities, schools, potential community
support/opposition, and construction costs. Caltrans Western Avenue Improvements are anticipated to make the
area more accessible while abundant nearby amenities including shopping, restaurants, and entertainment are
positive for mixed-use development.
HEIGHT RESTRICTIONS:
Mixed-use redevelopment requires an adequate height and density allowance to overcome the high cost of land
purchase and construction. The Western Avenue parcels all have a current height restriction of 16 feet unless a
CUP is approved. Even with a CUP approved, the properties from 29019-29413 S. Western Avenue only allow a
maximum of 30 feet in height with restrictions. These current height restrictions prevent mixed-use
redevelopment opportunities. There are some limited mixed-use redevelopment opportunities if the height
restriction is revised to be the maximum height that would not negatively impact residential views above the
subject property. In order to maximize mixed-use redevelopment opportunities, the City would need to allow
building heights that may restrict some residential views.
LOT SIZE:
Mixed-use redevelopment requires a large enough buildable lot size to generate adequate revenue that will
overcome the cost and time associated with the redevelopment. Many of the properties studied for this report
are too small for redevelopment and would be difficult to combine with other adjacent properties due to multiple
property owners. This report assumed a minimum 0.75acre lot size for redevelopment potential.
PROPERTY OWNER:
Mixed-Use Redevelopment usually requires a willing property owner that owns a large enough lot or multiple
contiguous lots that can be combined. Many of the properties studied for this report have property owners with
long-term tenants that are generating consistent revenue. These properties may be considered opportunity sites,
but will be more challenging for mixed-use redevelopment.
ZONING:
Mixed-Use Redevelopment requires the allowance of both commercial and residential uses. The current zoning
for the properties studied for this report only allow commercial development. It is understood that the Mixed-
Use Overlay Zone is meant to address this situation. Therefore, this was not a limiting factor for determining
opportunity sites.
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INFRASTRUCTURE:
Infrastructure improvements can add substantial cost and schedule risk to a redevelopment project and are
critical to consider. Roads, Sewer, Water, Electricity and Gas are all readily available to the properties, however
there are overhead power lines fronting all of the properties studied as well as raised utility structures doting the
Western Avenue sidewalks. As currently written, the Western Avenue Specific Plans require new developments to
underground these facilities that front their property. These added infrastructure improvement costs and risks to
project schedules will require an adequate increase in revenue potential or a reduced property sales price to
make a property feasible for redevelopment.
PARKING:
Parking requirements are a critical factor in determining the feasibility of a particular site for mixed-use
redevelopment. Decreased parking requirements onsite and/or City-provided offsite parking capability would
help overcome smaller lot size constraints.
REGULATORY REQUIREMENTS:
Regulatory requirements can add substantial cost to a redevelopment project. The City currently requires
residential development projects to include 5% very-low income or 10% low-income units in their project or
provide an in-lieu fee of $284,262.
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EXHIBIT B
PROPERTY FEASIBILITY PROFILES:
Each of the 18 parcels were evaluated based upon current site characteristics and the development
considerations outlined above. A summary of the unique characteristics for each of the properties is outlined
below.
29019 S. WESTERN AVENUE -
This property is currently a 1-story Denny’s Restaurant. The same owner has properties 29019-29229 S. Western
Avenue. There are residential homes above a dead-end alley that lie about 40 feet above the property, however
existing trees are already blocking the upper residential neighbor’s views. This creates an opportunity to
increase the height allowance for this property to 60 feet. This is especially critical for redevelopment considering
that the buildable pad size is about 13,300 sf with only a 95-foot depth and parking requirements would be
difficult and costly to meet. Combining adjacent properties 29019-29051 S. Western could potentially help and
would provide an estimated 1.21 ac buildable block. This is considered a Priority 3 opportunity site.
29023 S. WESTERN AVENUE –
This property is currently a parking lot with a buildable pad size of about 9,900 sf and a depth of 110 ft. The same
owner has properties 29019-29229 S. Western Avenue. There are residential homes above a dead-end alley that
lie about 35 feet above the property. This creates an opportunity to increase the height allowance for this
property without blocking views. This is especially critical for redevelopment considering that the lot size and
parking requirements make redevelopment difficult and costly. Combining adjacent properties 29019-29051 S.
Western could potentially help and would provide an estimated 1.21 ac buildable block. This is considered a
Priority 3 opportunity site.
29035 S. WESTERN AVENUE –
This property is currently a Broiler Express Restaurant with a buildable pad size of about 9,000 sf and a depth of
120 ft. The same owner has properties 29019-29229 S. Western Avenue. There are residential homes above a
dead-end alley that lie about 32 feet above the property. This creates an opportunity to increase the height
allowance for this property without blocking views. This is especially critical for redevelopment considering that
the lot size and parking requirements make redevelopment difficult and costly. Combining adjacent properties
29019-29051 S. Western could potentially help and would provide an estimated 1.21 ac buildable block. This is
considered a Priority 3 opportunity site.
29051 S. WESTERN AVENUE –
This property is currently vacant with a former Marie Calendars building. It has a buildable pad size of about
20,300 sf and a depth of 140 ft. The same owner has properties 29019-29229 S. Western Avenue. There are
residential homes above a dead-end alley that lie about 10 feet above the property. This restricts additional
height above 1 story without disrupting residential views behind. Combining adjacent properties 29019-29051 S.
Western could potentially help and would provide an estimated 1.21ac buildable block. This property on its own
is not considered an opportunity site because of the potential height restriction but it could be combined with
adjacent properties that have the same property owner to use as potential surface parking.
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29105 S. WESTERN AVENUE –
This property is currently a portion of the Western Plaza Shopping Center with a buildable pad size of about
31,500 sf and a depth of 150 ft. The same owner has properties 29019-29229 S. Western Avenue. There are
residential homes sitting about 15 feet above the property. This restricts additional height above 1 story without
disrupting residential views behind. This is property is not considered an opportunity site.
29125 S. WESTERN AVENUE –
This property is currently a portion of the Western Plaza Shopping Center with a buildable pad size of about
20,250 sf and a depth of 150 ft. The same owner has properties 29019-29229 S. Western Avenue. There are
residential homes sitting about 20 feet above the property. This restricts additional height above 2 stories
without disrupting residential views behind. This property is not considered an opportunity site.
29211 S. WESTERN AVENUE –
This property is currently the Eastview Professional Building with a buildable pad size of about 11,250 sf and a
depth of 150 ft. The same owner has properties 29019-29229 S. Western Avenue. There are residential homes
sitting about 24 feet above the property. This restricts additional height above 2 stories without disrupting
residential views behind. This property is not considered an opportunity site.
29215 S. WESTERN AVENUE –
This property is currently the Eastview Professional Building with a buildable pad size of about 11,900 sf and a
depth of 170 ft. The same owner has properties 29019-29229 S. Western Avenue. There are residential homes
sitting about 24 feet above the property. This restricts additional height above 2 stories without disrupting
residential views behind. This is property is not considered an opportunity site.
29229 S. WESTERN AVENUE –
This property is currently O’Reilly Auto Parts with a buildable pad size of about 31,800sf and a depth of 265 ft.
The same owner has properties 29019-29229 S. Western Avenue. There are residential homes sitting about 26
feet above the property. This restricts additional height above 2 stories without disrupting residential views
behind. This property is not considered an opportunity site.
29317 S. WESTERN AVENUE –
This property is currently a Jack in the Box Restaurant with a buildable pad size of about 28,500sf and a depth of
150ft. This is a single property owner. There are residential homes sitting about 30 feet above the property.
This restricts additional height above 3 stories without disrupting residential views behind. This property is not
considered an opportunity site.
29403 S. WESTERN AVENUE –
This property is currently an Ihop Restaurant with a buildable pad size of about 16,000sf and a depth of 160ft.
This property owner also owns the America’s Tire property located at 29529 S. Western Avenue. There are
residential homes sitting about 30 feet above the property. This restricts additional height above 3 stories
without disrupting residential views behind. This property is not considered an opportunity site.
29409 S. WESTERN AVENUE –
This property is currently being used as medical offices with a buildable pad size of about 21,000sf and a depth of
145ft. This is a single property owner. There are residential homes sitting about 25 feet above the property.
This restricts additional height above 2 stories without disrupting residential views behind. This property is not
considered an opportunity site.
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29413 S. WESTERN AVENUE –
This property is currently occupied by Bay Cities Sew & Carpet with a buildable pad size of about 7,250sf and a
depth of 145ft. This is a single property owner. There are residential homes sitting about 20 feet above the
property. This restricts additional height above 2 stories without disrupting residential views behind. This
property is not considered an opportunity site.
29505 S. WESTERN AVENUE –
This property is currently a small strip mall with a buildable pad size of about 24,948sf and a depth of 162ft. This
is a single property owner. There are residential homes sitting about 70 feet above the property. This creates an
opportunity to increase the height allowance for this property without disrupting residential views behind. This
property is considered a Priority 2 opportunity site due to the ability for additional height, but the lot size likely
would require that this property be combined with adjacent properties.
29519 S. WESTERN AVENUE –
This property is currently a Valvoline Oil Change with a buildable pad size of about 9,300sf and a depth of 150ft.
This is a single property owner. There are residential homes sitting about 65 feet above the property. This
creates an opportunity to increase the height allowance for this property without disrupting residential views
behind. This property is considered a Priority 2 opportunity site due to the ability for additional height, but the lot
size likely would require that this property be combined with adjacent properties.
29529 S. WESTERN AVENUE –
This property is currently an America’s Tire with a buildable pad size of about 24,000sf and a depth of 120ft. This
property owner also owns the Ihop property located at 29403 S. Western Avenue. There are residential homes
sitting about 60 feet above the property. This creates an opportunity to increase the height allowance for this
property without disrupting residential views behind. This property is considered a Priority 1 opportunity site due
to the ability for additional height and its lot size.
29601 S. WESTERN AVENUE –
This property is currently America’s Best Value Inn and Think Prime Steakhouse with a buildable pad size of about
39,000sf and a depth of 130ft. This is a single property owner. There are residential homes sitting about 60 feet
above the property. This creates an opportunity to increase the height allowance for this property without
disrupting residential views behind. This property is considered a Priority 1 opportunity site due to the ability for
additional height and its lot size.
29619 S. WESTERN AVENUE –
This property is currently a Professional/Medical Services building with a buildable pad size of about 15,029sf and
a depth of 133ft. This is a single property owner. There are residential homes sitting about 60 feet above the
property and there is an existing 8-story condominium building next door. This creates an opportunity to
increase the height allowance for this property without disrupting residential views behind. This property is
considered a Priority 2 opportunity site due to the ability for additional height, but the lot size likely would require
that this property be combined with adjacent properties.
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