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  Public Hearings   6.       
LAFCO
Meeting Date: 03/28/2024  

Information
SUBJECT
Consider Resolution 2024-04 adopting Findings as a Responsible Agency for the Environmental Impact Report (EIR), EIR Addendum, and Statement of Overriding Considerations for The Promenade, and Resolution 2024-05 approving The Promenade Reorganization to the City of Davis (LAFCo No. 23-05) and Waiving Protest Proceedings
RECOMMENDED ACTION
  1. Receive staff presentation and open the Public Hearing for public comments on this item.
  2. Close the Public Hearing and consider the information presented in the staff report and during the Public Hearing.
  3. Consider the Environmental Impact Report (EIR), EIR Addendum, and Statement of Overriding Considerations for The Promenade and approve Resolution 2024-04 adopting findings as a Responsible Agency in accordance with the California Environmental Quality Act (CEQA).
  4. Adopt Resolution 2024-05 approving The Promenade Reorganization to the City of Davis (LAFCo No. 23-05) and Waiving Protest Proceedings.
FISCAL IMPACT
No fiscal impact. The proposal applicant, Davis Gateway Student Housing, LLC, submitted a deposit and is required to reimburse LAFCo for all processing costs.
REASONS FOR RECOMMENDED ACTION
Government Code Section 56375 provides LAFCo with the power to review and approve proposals for "changes in organization" consistent with policies adopted by the commission. Government Code Section 56021 defines "changes of organization" to include annexation to a city, detachment of a special district, among other actions.

On February 20, 2018, the City of Davis approved the Nishi Residential Development Project (currently known as "The Promenade") and the voters of the City of Davis, on November 6, 2018, ratified the General Plan Amendment and the Baseline Project Features for the Project. Government Code Section 56706 authorizes proceedings for a change of organization or a reorganization to be initiated via landowner petition and the proposal application was submitted to Yolo LAFCo on August 17, 2023. The subject parcel is included within the Sphere of Influence for the City of Davis as approved by the Yolo LAFCo.

The reorganization proposal was considered and analyzed in accordance with the required factors listed in Government Code Section 56668 and Yolo LAFCo Standards of Evaluation for proposals (Yolo LAFCo Project Policies Section 2.0). The reorganization is eligible for approval without notice and a waiver of protest proceedings because the owners of land within the affected territory, exclusive of land owned by a private railroad company, have given their written consent to that reorganization, and no subject agency has submitted written opposition to a waiver of protest proceedings.

The Proposal was ready for public hearing on December 7, 2023. However, the applicant requested it be postponed until now. 
BACKGROUND
Proposal Description
The project site consists of approximately 56.11 acres located southwest and adjacent to the City of Davis within the City of Davis Sphere of Influence (SOI) of unincorporated Yolo County. The project site is triangular-shaped and bounded by existing industrial development to the northeast, I-80 to the southeast, and the Union Pacific Raid Road (UPRR) rail line and UC Davis to the northwest. The project site is currently undeveloped and has been dry-farmed for winter wheat crops in the past.

The City of Davis approval changed the general plan land use designation from Agriculture to Residential and Natural Habitat Area. Correspondingly, the parcel has also been pre-zoned to Planned Development. The project includes development of rental residential uses; up to 10,000 sf of commercial/retail space and other community building uses; onsite water detention; open spaces, including private open space for the proposed residential uses, urban forests or urban farmland; and a satellite surface/structure parking area with solar panels. The project would include up to 700 rental apartment units to accommodate up to 2,200 occupants (primarily students).

Factors to be Considered
In accordance with Government Code Section 56668, the factors to be considered in the review of a proposal shall include, but is not limited to, all of the following:
  1. Population, land use, natural boundaries, proximity to other populated areas, and likelihood of significant growth in the area during the next 10 years;
  2. The need for organized community services, the adequacy of governmental services and controls in the area, the probable effect of annexation and alternative courses of action;
  3. The effect of the proposed action (and alternative actions) on the adjacent areas, social and economic interests and local governmental structure of the county;
  4. The conformity of the proposal and its effects with adopted commission policies on providing planned, orderly and efficient patters or urban development;
  5. The effect of the proposal on maintaining the physical and economic integrity of agricultural lands;
  6. The definiteness of the boundaries with parcel lines and the creation of any "islands" or corridors of unincorporated territory;
  7. A regional transportation plan;
  8. The proposal's consistency with city or county general and specific plans;
  9. The sphere of influence of any applicable local agency;
  10. The ability of the receiving entity to provide services and the sufficiency of revenues for those services;
  11. Availability of water supplies;
  12. The extent to which the proposal will affect a city in achieving its regional housing needs as determined by its council of governments;
  13. Any information or comments from landowners, voters or residents fo the affected territory;
  14. Any information relating to existing land use designations;
  15. The extent to which the proposal will promote environmental justice, meaning the fair treatment tof people of all races, cultures and incomes with the respect to the provision of public services; and
  16. Any local hazard plan or safety element of a general plan that identify land as a very high fire hazard zone.
Yolo LAFCo's local standards of evaluation for proposals (Section 2.0) elaborates on these state-mandated factors with the following additional standards:
  1. Favoring municipal services by cities in urbanized areas rather than the County or special districts;
  2. Consider not only present service needs of the area under consideration, but shall also consider future services which may be required to take care of future growth or expansion;
  3. Requiring a service plan that describes the extension, financing and timing of services;
  4. SACOG's regional housing needs for the agency, recent update (and certification) of the agency's housing element, whether the agency's inclusionary housing ordinance complies with SACOG's Affordable Housing Compact, the degree to which the proposal meets the agency's "low income" and "very low income" housing targets, and the extent to which the proposal advances or inhibits the agency's housing element; and
  5. Consistency with the Agricultural Conservation Policy.
Analysis
The proposed annexation area is within the City's sphere of influence (SOI) and is a logical and orderly extension of the City’s urban area. The proposed development will need urban services and the City has the capacity and is the appropriate agency to provide services. The subject territory is mostly surrounded by existing city jurisdiction and the proposal does not create any "islands" or corridors of unincorporated territory. The project is consistent with the regional growth projections prepared by SACOG and is consistent with the City's General Plan land use designations. The City of Davis has pre-zoned the territory consistent with its General Plan.

LAFCo Policy No. 4.4 requires LAFCo to review projects based on a number of considerations to promote the Yolo LAFCo's Agricultural Conservation Policy’s goal that “boundary changes for urban development should only be proposed, evaluated, and approved in a manner which, to the fullest extent feasible, is consistent with the continuing growth and vitality of agriculture within the county.” The project site is mostly undeveloped, excepting the UPRR line, and has been previously used for agricultural uses. The site is not designated as Prime, Unique, or Farmland of Statewide importance by the Department of Conservation Farmland Mapping and Monitoring Program. However, development of the site would result in a loss of farmland that was determined to be of high agricultural importance based on land suitability and site assessment criteria. The project would convert 43.5 acres of agricultural land to urban uses. Because the project would result in the conversion of active agricultural land to urban uses, it is a significant impact. The project would be required to comply with City Municipal Code Article 40A.03 that requires the purchase of compensatory agricultural lands at a 2:1 ratio compared to those lost/converted. Although the project is required to mitigate to the extent feasible, the City has adopted a Statement of Overriding Considerations as the impact remains significant and unavoidable. The subject property is surrounded by existing City and UC Davis development and I-80 and, therefore, will not be growth inducing. Therefore, the proposal is consistent with Yolo LAFCo's Agricultural Conservation Policy.

The City's EIR and Addendum analyzed the capacity and availability of public services and utilities and concluded that the City has the capacity to serve the project. The territory is intended to be developed with student housing and will help the City to meet its regional housing needs. The proposed boundary does not exclude any existing communities that should be provided equal access to municipal services. The proposal area is not identified as a "very high fire hazard zone". Finally, the City and County have approved a property tax exchange agreement. For all these reasons, staff recommends that the annexation proposal complies with required state factors and local standards of evaluation.

Correspondence
The East Davis Fire Protection District provided comments stating the District will no longer provide fire service to the territory, but does not oppose the proposal. The Auditor's Office submitted its required response indicating a new tax rate area (TRA) will be required for the subject territory and lists the agencies and amount of the 1% tax rate before and after reorganization. 

Action Without Notice and Waiver of Protest Proceedings
The application includes written consent signed by one landowner that represents 100% of the affected territory exclusive of land owned by a private railroad company. Notice was provided to all landowners within the project territory plus a 300’ radius and all registered voters, as well as to all affected agencies, and no written opposition has been received. The notice includes the Commission’s intent to waive protest and election proceedings, as provided in Government Code section 56662. 
 
CEQA
The reorganization is a discretionary action subject to CEQA. On February 6, 2018, the Davis City Council adopted Resolution No. 18-022, adopting an Addendum, and adopting CEQA Findings of Fact, Mitigation Monitoring and Reporting Program, and Statement of Overriding Considerations which analyzes and discloses the significant environmental effects associated with development in the annexation area.
 
LAFCo is considered a "responsible agency" under CEQA, which means a public agency, other than the "lead agency" (i.e. the City), which has responsibility for carrying out or approving a project. In other words, LAFCo approval (i.e. the annexation) is required for the City to carry out development under its project approval. Pursuant to Government Code Section 15096, LAFCo as a responsible agency complies with CEQA by considering the EIR prepared by the City and reaching its own conclusions on whether and how to approve the annexation. LAFCo is required to make findings for each significant environmental effect of the project. CEQA requires the decision-making agency to balance the economic, legal, social, technological, or other benefits of a proposed project against its unavoidable environmental effects when determining whether to approve the project. If the benefits outweigh the adverse effects, they may be considered "acceptable".

The City's EIR and Addendum identified significant and unavoidable impacts at the project site related to agriculture and forest resources; air quality; greenhouse gas emissions, climate change and energy; noise and vibration; and transportation and circulation. The City's EIR and Addendum have not been attached due to size considerations, but can be found here: https://www.cityofdavis.org/city-hall/community-development-and-sustainability/development-projects/the-promenade-2023. Staff provided comments to the Notice of Preparation to ensure the EIR and Addendum was consistent with LAFCo policy.
Attachments
ATT A-Reso 2024-04 Adopting CEQA Findings for The Promenade Annexation to City of Davis
ATT B-Reso 2024-05 Approving Promenade Reorg to the City of Davis LAFCo 23-05 03.28.2024
ATT C-Correspondence LAFCo 23-05
ATT D-CEQA Findings of Fact & Statement of Overriding Considerations City of Davis Feb 2018

Form Review
Inbox Reviewed By Date
Christine Crawford (Originator) Christine Crawford 03/13/2024 01:58 PM
Christine Crawford (Originator) Christine Crawford 03/18/2024 01:27 PM
Form Started By: Christine Crawford Started On: 03/05/2024 10:07 AM
Final Approval Date: 03/18/2024

    

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