HACIENDA REPORT - Laserfiche WebLink

General Plan Land Use Conformity: The existing General Plan land use designation for Hacienda is Business Park, and the land use designation under the General Plan Update would be Mixed Use. This new designation recognizes that Hacienda is already a mixed use development that has evolved into something more than a business park. The General Plan Update also includes the necessary policy language to accommodate mixed use development in the park, although some changes to the document would be necessary if the PUD Development Plan process is selected in lieu of the Specific Plan. The Carr proposal would conform to both the existing and proposed land use designations (which is why staff is comfortable with proceeding independently with this project), whereas the two residential proposals would not conform to either the existing or proposed General Plan designations. The W.P. Carey and BRE proposals, as purely residential developments, would not meet the definition of mixed use as currently drafted since there would not be a combination of uses on the site, whereas the Carr proposal would be considered mixed use since it would contain office, hotel, and retail uses. Market Analysis: In 2005, Strategic Economics prepared a report for the Hacienda Owners Association concerning the Hacienda planning process entitled, "Hacienda: Opportunities for Mixed Use Retail" which defines the market demand for additional retail in Hacienda that could contribute to a more pedestrian-oriented environment and add to the quality of life of workers and residents. The report states that mixed use development is among the most promising types of retail development, and that "for mixed use projects to capture the sales of local households, the core retail uses in a project should meet the daily needs of residents by providing goods and services that maximize the relationship between area workers, households, and retail."3 The report concludes that there is currently sufficient demand for additional retail in Hacienda based on the existing employees and existing residences in the park, and that adding more such development in Hacienda would increase this potential. Furthermore, it states that "the introduction of mixed use retail and housing into Hacienda would improve the park's overall competitiveness throughout economic cycles by strengthening rents and occupancy rates." a The residential project developers maintain that mixed use developments at the densities encouraged in the General Plan (30 + dwelling units per acre) and needed for success of commercial enterprises are not feasible given the number of dwelling units allocated to Hacienda. The residential applicants have suggested that they may be able to change their plans to include mixed use development and a higher density product if a greater number of units were available to them, albeit not beyond the City's voter- approved housing cap. The City's Housing Cap is a constraint in allocating additional residential units to these projects; however, there are 522 additional units available in the reserve that is included in the Council's Preferred Land Use Plan. Therefore, the Council could re-visit the question of the allocation of dwelling units and consider increasing this number for Hacienda if it determines that it would prefer a mixed use ' Strategic Economics, "Hacienda: Opportunities for Mixed Use Retail," August 2005, Page 5. "Strategic Economics, Page 6. Page 9 of 13