HomeMy WebLinkAbout2019-04-23 - AGENDA REPORTS - NEWHALL GATEWAY CONCEPTUAL PLAN DISCUSSION (2)O
Agenda Item: 5
NEW BUSINESS
CITY OF SANTA CLARITA
AGENDA REPORT
CITY MANAGER APPROVAL:
DATE: April 23, 2019
SUBJECT: NEWHALL GATEWAY CONCEPTUAL PLAN DISCUSSION
DEPARTMENT: Community Development
PRESENTER: Ben Jarvis
RECOMMENDED ACTION
City Council review the Newhall Gateway conceptual plan and provide direction.
BACKGROUND
Sierra Crossing Development Proposal
On February 27, 2008, SFXS Partners (Applicant) submitted an application to construct the
Sierra Crossing commercial center, located on 10.28 acres of vacant land at 23300 Newhall
Avenue (formerly known as San Fernando Road). The project was processed under Master Case
No. 08-033. The property is on the southeast corner of Newhall Avenue and Sierra Highway,
where Sierra Highway is the north/south arterial and Newhall Avenue runs east/west. The project
consisted of approximately 99,000 square feet of commercial space in five buildings, including a
drive-through restaurant and a hotel (see Exhibit A). No residential uses were proposed.
On June 2, 2009, the Planning Commission approved the project with a 4-1 vote. On June 8,
2009, the project was called up for review by the City Council, citing issues with the overall site
design, aesthetics, and environmental impacts. A Public Hearing was held at the City Council
meeting on August 25, 2009, and, at the request of the Applicant, was continued numerous times
over the following year. The project was withdrawn by the Applicant on October 27, 2010.
Newhall Gateway Conceptual Plan
On January 12, 2010, in the midst of the continued Public Hearing, the City Council received a
presentation by City of Santa Clarita (City) staff on the Sierra Crossing commercial project. A
resolution of denial was prepared based on site design issues and impacts to the site's riparian
habitat; however, no action was taken by the City Council. At that same meeting, the City
Council, acting as the Redevelopment Agency board, directed staff to enter into an agreement
with Poliquin Kellogg Design Group (PKDG) to conduct a conceptual design and economic
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analysis for the entire southeast quadrant at the Newhall Avenue/Sierra Highway intersection.
This area became known as the "Newhall Gateway," and included the Sierra Crossing site and
parcels owned by the University of Southern California (USC), Rouse and Rouse, LLC, Leon's
Transmission Service Inc., and Whitney Canyon Ranch Associates Residential. The analysis area
consisted of 18.6 acres and encompassed the triangular area bounded by Newhall Avenue on the
north, Sierra Highway on the west, and State Route 14 (SR -14) on the east (see Exhibit B). In
response to the Redevelopment Agency's action, the City Council tabled the review of Master
Case No. 08-033 for six months to allow PKDG to complete its work on a viable development
strategy.
On June 22, 2010, staff presented PKDG's conceptual development plans for Newhall Gateway
to the City Council/Redevelopment Agency board. Newhall Gateway Site Plan 1 (Site Plan 1)
was selected as the preferred option by the City Council (see Exhibit C). Staff was given
direction to work with the property owners to implement the conceptual plan. The Newhall
Gateway conceptual plan is not an adopted Specific Plan, Master Plan, or legal entitlement;
rather, the plan documents the City Council's vision for the kind of development that should be
located at this important gateway into the Santa Clarita Valley.
Site Plan 1, the most intensive of the concepts explored, proposed 269,000 square feet of
commercial space with 10 buildings, including a five -level parking structure, a hotel, restaurant
pads, and office buildings. The parking structure was envisioned to have 100 spaces set aside for
park-and-ride use. The site plan was situated around Newhall Creek, preserving substantially
more riparian area than the Sierra Crossing project. The conceptual plan also highlighted the
former US Route 6 right-of-way, a linear strip of historic highway that still exists on the site.
When Site Plan 1 was selected as the preferred development concept, the City did not own any of
the affected properties in the Newhall Gateway area. The City Council directed staff to work
with property owners to implement the plan. If property owners were uninterested or unable to
proceed with development projects based on Site Plan 1, then staff was directed to examine other
options, including, but not limited to, a Request for Qualifications from prospective developers
that may have an interest in developing this quadrant of the Newhall Gateway area. When the
State of California Redevelopment Program was discontinued in 2011, the City lost funding and
redevelopment options for the site. As a result, the City has not moved forward in purchasing
property or assembling parcels. Exhibit D shows the current ownership in the area.
Over the past nine years, staff has used Site Plan 1 as a guiding document for the area. Potential
applicants who submit conceptual plans for the property, and those who call inquiring about the
area, are made aware of the City's vision for Newhall Gateway. Staff comments provided on
development proposals and general answers to questions concerning development potential on
the site have been consistent with the City Council's 2010 direction.
The following matrix provides a development comparison between the Sierra Crossing project
and the Newhall Gateway conceptual plan:
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DISCUSSION/ANALYSIS
Environmental and Site Constraints
Newhall Creek runs across the site for approximately 900 linear feet, with approximately
3.3 acres of riparian habitat surrounding the creek bed. The Sierra Crossing project proposed to
fill-in and underground 300 linear feet of Newhall Creek, thereby increasing the amount of
developable area. Filling in the creek bed was one reason why the project was called up for
review in 2009. Several oak trees exist in the vicinity of Newhall Creek, and those trees would
be impacted if the creek was to be buried. The Newhall Gateway plan preserved the Newhall
Creek bed and used the riparian area as an amenity. The location of the Newhall Creek culvert
under Newhall Avenue also presents a development challenge, as it prevents practical access
from the project site at the corner of Sierra Highway. Access to Newhall Avenue cannot be
provided unless a substantial portion of the creek is undergrounded. The Santa Monica
Mountains Conservancy and local environmental groups raised concerns over the proposal to fill
a portion of the riparian area and place Newhall Creek in an underground pipe. The site is further
constrained by lack of access to the USC parcels located between the riparian area and the SR -14
freeway, the Caltrans slope and drainage easements, and the former US Route 6 right-of-way that
contains utilities.
Private property ownership and parcel locations likewise present a challenge to implementing
Site Plan 1 because the parking structure envisioned in the concept plan, a structure that would
provide the bulk of parking for Newhall Gateway, is located on land owned by USC. As
envisioned by Site Plan 1, buildings situated on parcels owned by others would need to use the
structure on the USC property in order to meet their parking requirement.
Chanes Since City Council's 2010 Direction
Since staff received direction from the City Council in 2010, substantial changes have occurred
that affect the Newhall Gateway area. The State of California eliminated the Redevelopment
Program in 2011, and the Redevelopment Agency was subsequently dissolved, eliminating the
City's ability to assemble parcels and limiting its options to participate in future projects as a
funding partner or lead applicant. In 2011 and 2013, respectively, the City adopted a new
General Plan and Zoning Ordinance that increased the site's development potential. Today, this
same quadrant of Newhall Gateway could support more than 1.6 million square feet of
commercial space and between 334-930 residential units. Given the constraints of the site, the
actual amount of commercial space and dwelling units would likely be less than the maximum.
Even so, the land now has substantially more development potential than it did in 2010.
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Sierra Crossing
Sierra Crossing portion
of Newhall Gateway
Newhall Gateway
Acres
10.28
10.28
18.6
Hotel (Square Feet)
55,200
75,900
75,900
Office (Square Feet)
15,626
90,400
169,000
Restaurant/Retail (Square Feet)
28,075
0
23,800
Total Square Feet
98,901
166,300
269,300
DISCUSSION/ANALYSIS
Environmental and Site Constraints
Newhall Creek runs across the site for approximately 900 linear feet, with approximately
3.3 acres of riparian habitat surrounding the creek bed. The Sierra Crossing project proposed to
fill-in and underground 300 linear feet of Newhall Creek, thereby increasing the amount of
developable area. Filling in the creek bed was one reason why the project was called up for
review in 2009. Several oak trees exist in the vicinity of Newhall Creek, and those trees would
be impacted if the creek was to be buried. The Newhall Gateway plan preserved the Newhall
Creek bed and used the riparian area as an amenity. The location of the Newhall Creek culvert
under Newhall Avenue also presents a development challenge, as it prevents practical access
from the project site at the corner of Sierra Highway. Access to Newhall Avenue cannot be
provided unless a substantial portion of the creek is undergrounded. The Santa Monica
Mountains Conservancy and local environmental groups raised concerns over the proposal to fill
a portion of the riparian area and place Newhall Creek in an underground pipe. The site is further
constrained by lack of access to the USC parcels located between the riparian area and the SR -14
freeway, the Caltrans slope and drainage easements, and the former US Route 6 right-of-way that
contains utilities.
Private property ownership and parcel locations likewise present a challenge to implementing
Site Plan 1 because the parking structure envisioned in the concept plan, a structure that would
provide the bulk of parking for Newhall Gateway, is located on land owned by USC. As
envisioned by Site Plan 1, buildings situated on parcels owned by others would need to use the
structure on the USC property in order to meet their parking requirement.
Chanes Since City Council's 2010 Direction
Since staff received direction from the City Council in 2010, substantial changes have occurred
that affect the Newhall Gateway area. The State of California eliminated the Redevelopment
Program in 2011, and the Redevelopment Agency was subsequently dissolved, eliminating the
City's ability to assemble parcels and limiting its options to participate in future projects as a
funding partner or lead applicant. In 2011 and 2013, respectively, the City adopted a new
General Plan and Zoning Ordinance that increased the site's development potential. Today, this
same quadrant of Newhall Gateway could support more than 1.6 million square feet of
commercial space and between 334-930 residential units. Given the constraints of the site, the
actual amount of commercial space and dwelling units would likely be less than the maximum.
Even so, the land now has substantially more development potential than it did in 2010.
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Needham Ranch is another factor, as that development is under construction. A Condition of
Approval for Needham Ranch required a new right -turn lane on northbound Sierra Highway at
Newhall Avenue. The new lane requires an additional 12 feet of right-of-way that further
constrains the corner parcel at Sierra Highway and Newhall Avenue.
In 2017, the Sierra Crossing applicant submitted for a Lot Line Adjustment to create a one -acre
lot at the corner of Sierra Highway and Newhall Avenue. The Lot Line Adjustment was recorded
in September 2017. Also in 2017, USC submitted for a lot merger to combine its properties in
the Newhall Gateway area adjacent to SR -14. The lot merger was recorded in 2018.
Consolidating the lots provided frontage on Newhall Avenue for the entire USC property, though
physical access may not be feasible due to the property's proximity to the southbound SR -14 on-
ramp. The most practical access for the USC property continues to be through adjoining parcels
that front Sierra Highway. Access is one reason why the City Council supported the concept of a
master planned development for the area; taking a larger view of issues, such as access, drainage,
and infrastructure, could potentially allow more efficient use of the site than developing the site
in an uncoordinated manner.
One Stop Reviews
Since 2010, when Site Plan 1 was selected as the preferred development plan by the City
Council, staff has processed three One Stop Reviews for the Newhall Gateway area. Some
proposals encompassed the entire quadrant, others looked at sub -areas of the larger site. A One
Stop Review is a general look at a conceptual project and is not a formal development request.
The One Stop Reviews are summarized below:
• Master Case 17-015
For 258 residential units and 40,700 square feet of commercial space, including two
restaurants with drive-through lanes
• Master Case 18-017
For a gas station at the corner of Newhall Avenue and Sierra Highway
• Master Case 18-018
For a Tentative Parcel Map for the subdivision of land
In each case listed above, staff provided comments that referenced the Newhall Gateway
conceptual plan. An example of typical written comments includes the following:
The project is located in an area known as the Newhall Gateway. This area serves as
a major entry point into the City of Santa Clarita. Given the prominence of the
corner, its proximity to the Antelope Valley Freeway, and its role as a gateway into
Old Town Newhall, the City Council has stated the entire quadrant should be planned
with a coordinated, long-term, economically viable strategy.
• As proposed, it is unclear whether or not the proposed subdivision is consistent with
Site Plan I of the Newhall Gateway development concept (Newhall Gateway Plan).
On June 22, 2010, the City Council directed staff to work to implement the Newhall
Gateway Plan. Staff will review any proposed project as it relates to the development
strategy identified in the Newhall Gateway Plan.
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The Newhall Gateway conceptual plan did not contemplate gas stations, drive-through
restaurants, or housing; therefore, staff has consistently provided input that discourages these
uses in favor of the hotel, restaurant, and office uses envisioned by Site Plan 1.
ALTERNATIVE ACTION
Other action as determined by Council.
FISCAL IMPACT
The discussion would have no fiscal impact.
ATTACHMENTS
Exhibit A: Sierra Crossing Site Plan
Exhibit B: Newhall Gateway Vicinity Map
Exhibit C: Newhall Gateway Site Plan 1
Exhibit D: Newhall Gateway Ownership
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Newhall Gateway Area
Parcel Ownership
The City of Santa Clarita does not warrant
the accuracy ofthe data and assumes no
liability for any errors or omissions.
Map prepared by: City of Santa Clarita - GIS
Q:\PROJECTS\CD\190322bl\newhall—gatoway.aprx
Packet Pg. 75
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Newhall Gateway Area
Parcel Ownership
The City of Santa Clarita does not warrant
the accuracy ofthe data and assumes no
liability for any errors or omissions.
Map prepared by: City of Santa Clarita - GIS
Q:\PROJECTS\CD\190322bl\newhall—gatoway.aprx
Packet Pg. 75