Napa City Banner
File #: 1602-2018    Version: 1
Type: Evening Public Hearings Status: Passed
File created: 10/15/2018 In control: CITY COUNCIL OF THE CITY OF NAPA
On agenda: 11/13/2018 Final action: 11/13/2018
Title: Franklin Station Hotel and Parking Garage Project, located at 1351 Second Street, 1251 Second Street, and 819 Randolph Street
Attachments: 1. ATCH 1 - Draft Resolution_General Plan Amendment, 2. ATCH 2 - Draft Resolution_Specific Plan Amendment, 3. ATCH 3 - Draft Ordinance_Rezoning, 4. ATCH 4 - Draft Ordinance_PD Overlay, 5. ATCH 5 - Draft Resolution_COA, 6. ATCH 6 - Draft Resolution Approving Amendment No. 1 to PSA, 7. ATCH 7 - Draft Resolution_Updating Procedures for DAs, 8. ATCH 8 - Draft Ordinance_DA, 9. ATCH 9 - Applicants Project Description, 10. ATCH 10 - Existing Historic Design Guidelines, 11. ATCH 11 - CEQA Addendum, 12. EX A to ATCH 11 -Traffic Analysis for Napa Post Office Redevelopment, 13. EX B to ATCH 11 - Historic Resource Summary-Project Evaluation, 14. EX C to ATCH 11 - Downtown Napa SP EIR MMRP, 15. ATCH 12 - Hotel Policy Analysis, 16. ATCH 13 - PC Staff Report_10-18-18 w/o Attachments, 17. ATCH 14 - CHC Staff Report_10-25-18 w/o Attachments, 18. ATCH 15 - Draft 10-18-18 PC Minutes Excerpt 7A, 19. ATCH 16 - Draft 10-25-18 CHC Minutes Excerpt 7A, 20. Link to DT Specific Plan & Environmental Docs

To:                     Honorable Mayor and Members of City Council

 

From:                     Lark Ferrell, Acting Community Development Director

 

Prepared By:                     Erin Morris, Planning Manager

                                          

TITLE:

Title

Franklin Station Hotel and Parking Garage Project, located at 1351 Second Street, 1251 Second Street, and 819 Randolph Street

 

LABEL

RECOMMENDED ACTION:
Recommendation

 

1) Adopt a resolution amending the City of Napa General Plan designation for the property at 1351 Second Street from the designation “Downtown Public” to the designation “Downtown Mixed Use” (APN 003-208-001) and determining that the actions authorized by this resolution were adequately analyzed by a previous CEQA action;

 

2) Adopt a resolution amending the City of Napa Downtown Specific Plan to re-designate the property at 1351 Second Street from “Downtown Public” to “Downtown Mixed Use” and revise the historic resources design guidelines for the property (APN 003-208-001) and determining that the actions authorized by this resolution were adequately analyzed by a previous CEQA action;

 

3) Approve the first reading and introduction of an ordinance amending the zoning map established under Section 17.04.050 of the Napa Municipal Code pertaining to the rezoning of the property located at 1351 Second Street from DP, Downtown Public District to DMU, Downtown Mixed-Use District and determining that the actions authorized by this ordinance were adequately analyzed by a previous CEQA action;

 

4) Approve the first reading and introduction of an ordinance approving a Planned Development Overlay District (PD-37) to establish use provisions and development standards for the Franklin Station hotel and parking garage located at 1251 and 1351 Second Street and 819 Randolph Street (APNs: 003-208-001, 002 & 003-212-001) (PL17-0090) and determining that the actions authorized by this ordinance were adequately analyzed by a previous CEQA action;

 

5) Adopt a resolution approving a Certificate of Appropriateness authorizing revised Downtown Napa Historic Resources Design Guidelines (Appendix G Pages 116 & 117) of the Downtown Napa Specific Plan for the historic building at 1351 Second Street (APN 003-208-001) and determining that the actions authorized by this resolution were adequately analyzed by a previous CEQA action;

 

6) Adopt a resolution authorizing the City Manager to execute the First Amendment to City Agreement No. C2017 037 Agreement of Purchase and Sale and Joint Escrow Instructions by and between the City and James Keller for the surface parking lot at the southeast corner of Second and Randolph and determining that the actions authorized by this resolution were adequately analyzed by a previous CEQA action;

 

7) Adopt a resolution updating procedures and requirements for consideration of development agreements; and

 

8) Approve the first reading and introduction of an ordinance adopting a Development Agreement pursuant to Government Code Sections 65864 et seq., by and between the City of Napa and James F. Keller and 1351 Second Street LLC, directing its execution and recordation and determining that the actions authorized by this ordinance were adequately analyzed by a previous CEQA action.

 

Body

DISCUSSION:

PROJECT DESCRIPTION

 

The Applicant, Jim Keller, requests a General Plan Amendment, Zoning Amendment, Specific Plan Amendment, Planned Development Overlay, Certificate of Appropriateness, First Amendment to Agreement of Purchase and Sale and Joint Escrow Instructions, and Development Agreement to facilitate redevelopment of the earthquake damaged Franklin Station Post Office building at 1351 Second Street. The proposed rehabilitation includes conversion and reuse of a portion of the historic structure into a hotel with a maximum room count of 163 rooms. The proposed hotel building, which has not yet been designed, would include associated amenities such as a restaurant, spa, and retail space. If the proposed project applications are approved, the Applicant intends to partner with an experienced hotel developer to design, construct, and operate the future hotel building.

In addition to the Post Office property, the project site also includes two nearby properties. The hotel structure would be constructed on two properties: (1) the Post Office property located at 1351 Second Street, and (2) the adjacent Zeller’s Ace Hardware site located to the south at 819 Randolph Street. The property owner of 819 Randolph entered into an agreement with the Applicant to sell the property. Required parking for new land uses would be located within a new automated mechanical parking structure on the existing 55-space City-owned surface parking lot at 1251 Second Street, across the street from the hotel. The parking structure would replace the surface spaces and provide public parking (65 public parking spaces to replace the existing 55 spaces) and sufficient additional parking to meet parking requirements for new hotel uses and an approximately 7,000 square foot retail space intended to activate the garage’s street frontage.

 

Required project approvals in this phase of the proposed development include:

 

1.                     General Plan Amendment - The proposed General Plan Amendment (Attachment 1) would change the existing designation of the Post Office parcel from DP, Downtown Public to DMU, Downtown Mixed Use. The amendment is limited to the Post Office parcel because the Zeller parcel and parking lot parcel are already designated DMU.

 

2.                     Zoning Amendment - The proposed Zoning Amendment (Attachment 3) would change the Post Office parcel from DP, Downtown Public to DMU, Downtown Mixed Use, consistent with the proposed General Plan Amendment.

 

3.                     Specific Plan Amendment - The proposed Specific Plan Amendment (Attachment 2) would change Figure 4-1 of the Downtown Specific Plan to reflect the proposed DMU land use and would replace Pages 116 and 117 of the Downtown Napa Historic Resources Design Guidelines in Appendix G of the Specific Plan with new pages to allow implementation of the historic rehabilitation project that is now required to preserve the building after the 2014 earthquake. The revised guidelines, which are also referenced in the Planned Development Overlay, are intended to meet the intent and goals of the Downtown Napa Historic Resources Design Guidelines by applying specific requirements related to protection of the Franklin Station building’s “significant historic features” and to the additions and alterations necessary to facilitate adaptive reuse.

 

4.                     Planned Development Overlay - The proposed Planned Development Overlay (Attachment 4) includes a PD, Planned Development Overlay District that would establish specific use provisions, specific development standards, design guidelines, and height limitations for the three project parcels. The PD would allow the development of up to a 163-room hotel with accessory uses in coordination with the rehabilitation of the National Register of Historic Places defining features of the Post Office structure, which includes the Second Street building frontage and interior lobby.

 

5.                     Development Agreement - The proposed Development Agreement (Attachment 8) would facilitate rehabilitation and reuse of the most historically significant component of the Franklin Station post office building. The agreement would grant a vested right to the developer in accordance with the project approvals, including the General Plan Amendment, Specific Plan Amendment/Zoning Amendment, and the Planned Development Overlay for a specified term provided that the developer complies with specified timing requirements for completing the design and construction of the proposed project.

 

6.                     Certificate of Appropriateness - The proposed Certificate of Appropriateness (Attachment 5) requests approval to perform work on the Post Office building in accordance with revised Downtown Napa Historic Resources Design Guidelines (Attachment 2, Exhibit C) governing the Franklin Station Post Office building and site. These revised Guidelines would replace the existing Guidelines (Appendix G pages 116 & 117) within the 2012 Downtown Specific Plan (Attachment 10), which did not contemplate the rehabilitation that is now required to preserve the building after the 2014 earthquake.

 

7.                     First Amendment to Agreement of Purchase and Sale and Joint Escrow Instructions, C2017-037 - The proposed amendment to the “Agreement of Purchase and Sale and Joint Escrow Instructions, C2017-037” (Attachment 6) would ensure that the deadline for close of escrow for the parking lot is consistent with the project implementation schedule in the Development Agreement. The proposed schedule would allow the Applicant two years from the effective date of the proposed Planned Development Overlay ordinance to submit an application for Design Review and other related entitlements, presumes that the development review process will take up to one year and that complete building permit and public improvement plans will be submitted within one year of project decision with the permits subsequently issued within one year of submittal. Consistent with this schedule, the amendment proposes a requirement to close escrow within five years, and authorizes the City Manager to extend the closing date for up to one additional year if the City Manager determines that reasonable and good faith efforts are being made by the Developer to meet the requirements of the Agreement.

 

PROJECT CONTEXT AND BACKGROUND

 

The Franklin Station Post Office, which was added to the National Register of Historic Places on January 11, 1985, was designed in the Art Deco style by Architect William H. Corlett and built in 1933. The building experienced significant damage as a result of the 2014 South Napa Earthquake. Because of the extensive earthquake damage, the Postal Service relocated across the street and planned to demolish the building, noting that it would cost $8 million to repair quake damage while it would cost only $500,000 to demolish it. In June 2015, significant local efforts to save the building were successful, and the Postal Service agreed to stop pursuing demolition and instead pursue the sale of the property. After several failed attempts to sell the building, the Applicant agreed to purchase and rehabilitate the property.

In February 2017, the City of Napa and the Applicant entered into an “Agreement of Purchase and Sale and Joint Escrow Instructions, C2017-037,” to allow the Applicant to acquire the City surface parking lot located at 1251 Second Street across the street from the Franklin Station site for the specific purpose of providing parking to serve the proposed hotel. The Agreement provides that upon approval of the necessary entitlements and final design of the hotel, the City would transfer the City-owned surface parking lot to the Applicant.

The project site is within the core of Downtown Napa, bounded on the north by retail and office uses across Second Street, to the east by a surface parking lot and retail use across Randolph Street, on the south by the adjacent Uptown Theatre and retail uses and the Presbyterian Church across Third Street, and on the west by office and retail uses across Franklin Street. Existing land uses in the vicinity of the project site include a variety of retail stores, offices, restaurants, services and visitor attractions.

Development Agreement

The Project includes a Development Agreement between the City of Napa and the Applicant (Attachment 8, Exhibit A). A Development Agreement is a contract between the City and a developer that authorizes the type and amount of development that would occur on property within a specific period of time. Development Agreements typically provide developers with vested development rights in exchange for providing the City with certain public benefits. A Development Agreement must comply with the General Plan, but may establish different development standards than provided by conventional zoning regulations.

In 1983, the City adopted Resolution No. 83-176 establishing procedures and requirements for consideration of development agreements, which were amended by Resolution No. 93-267. These procedures are outdated and provide for an annual review of approved development agreements by the Planning Commission. Therefore, as part of this item, a resolution has been proposed to repeal Resolution Nos. 83-176 and 93-267 and establish updated procedures for the consideration of development agreements, including a clarification of the roles of the City Manager and the Community Development Director to administer the requirements of any development agreement that is approved by the City Council, including conducting an annual review of all approved development agreements (Attachment 7).

 

GENERAL PLAN

 

The Post Office property has a General Plan and Zoning designation of Downtown Public (DP) reflective of its public use. The primary intent of this land use designation and zoning district is to provide for public and quasi-public uses dedicated to community-serving purposes such as government offices and related community service facilities.

The application proposes a General Plan Amendment and Zoning Amendment of the Post Office property from Downtown Public (DP) to the Downtown Mixed Use (DMU) land use designation and zoning district similar to surrounding property. The DMU land use designation and zoning provide for retail uses; administrative and other offices; institutional, recreational, entertainment, arts and cultural uses; and hotels and conference facilities that strengthen Downtown’s role as the community’s center. The two other properties included in the application (Zeller’s ACE hardware and City parking lot property) are already designated DMU and do not require an amendment. The required findings and additional analysis of how the proposal is supported by General Plan goals and policies can be found in Subsection IVA of Attachment 13, the Planning Commission Staff Report.

 

SPECIFIC PLAN AND ZONING AMENDMENTS

 

The current Downtown Specific Plan land use designation of the Franklin Station property is Downtown Public. The Applicant proposes a Zoning Amendment and Specific Plan Amendment to the Downtown Mixed-Use designation to reflect the new hotel and associated uses and to reflect discontinuation of the site’s previous public service use. The proposed Amendment would make the project site consistent with the surrounding properties and facilitate the redevelopment and reuse of the site with new, vibrant uses.

The Specific Plan Amendment would change Figure 4-1 of the Downtown Specific Plan to reflect the proposed DMU land use and would replace Pages 116 and 117 of the Downtown Napa Historic Resources Design Guidelines in Appendix G of the Specific Plan with revised guidelines for the Post Office building to allow implementation of the historic rehabilitation project that is now required to preserve the building after the 2014 earthquake. The revised Historic Resources Design Guidelines, which are also referenced in the Planned Development Overlay, are intended to meet the intent and goals of the Downtown Specific Plan Historic Design Guidelines by applying specific requirements related to protection of the Franklin Station building’s “significant historic features” and to the additions and alterations necessary to facilitate adaptive reuse.

The Franklin Station Hotel Project is consistent with Specific Plan policies in that the hotel will provide a pedestrian and visitor-oriented use within a historic building that has been vacant for more than four years. While the detailed design of the hotel (e.g., architecture, mass, scale, etc.) will be determined through a subsequent Design Review process, the proposed Design Guidelines for the new buildings will help ensure that the unique hotel implements the vision of the Specific Plan.

PLANNED DEVELOPMENT OVERLAY DISTRICT

 

The purpose of a Planned Development Overlay District is to encourage high quality, innovative and creative development design, and possibilities for varied or mixed uses consistent with the General Plan, by allowing flexibility in underlying zoning standards and to provide a mechanism for preservation of open space, natural or historic features while continuing to permit the efficient use of land.

The proposed PD Overlay District would help to encourage vibrant and active uses on the project site. The PD Overlay District would shift the following “conditional” uses of the DMU District to “permitted” uses to facilitate the development of the proposed hotel:

1.                     Hotel Use - Hotel development is a “conditional permitted use” in the Downtown Mixed Use (DMU) District. The proposed PD Overlay would allow up to 163 hotel rooms as a “permitted use” subject to provision of parking in compliance with the Zoning Code. Hotel development on the subject site, with the associated parking garage, would facilitate the principal goal of the DMU to reinforce Downtown’s identity as a compelling place for shoppers and visitors. Staff believes that a hotel with ancillary retail development can be found consistent with the intent of the DMU to provide a mix of land uses (i.e., shops, restaurants, hotels and entertainment in designated areas) that will draw people downtown during the day, evening, and on weekends. Elimination of the use permit requirement would streamline hotel development and would affirm that the proposed hotel use, subject to design review and compliance with the site-specific Design Guidelines, will be compatible with and would not cause any adverse impacts to adjacent uses.

 

2.                     Condo-Hotel Units - The proposed PD Overlay would allow up to 25% of the approved hotel rooms to be Condo-Hotel units, as defined by NMC section 17.06.030, as a permitted use provided that prior to building permit issuance, the owner has executed the documents required by NMC 17.52.095(D)(1) and (2), and the Project satisfies the requirements of NMC 17.52.095(E). Condo-hotel units are individually owned units where the ownership is structured as a condominium or similar financial relationship but operated as a hotel unit. A unit owner is allowed to use the unit no more than 14 days per calendar year unless a use permit is obtained to allow additional days of use. No unit may be rented to any person(s) for more than 30 consecutive days. Condo-hotel units are not considered residential units.

 

3.                     Whole Ownership Hotel Units - The proposed PD Overlay would allow up to 25% of the total hotel units to be accessory whole ownership dwelling units, known in the hotel industry as “branded residential.” The units are owned by third parties and could be used as residences or rented as hotel rooms at the election of the owner through a contractual relationship between the hotel operator and the owner. Under this contract, if the units are rented as hotel rooms, the hotel operator would manage the rental as it would any of its other hotel rooms, and if the units are used by the owners for residential occupancy, they would be occupied by the owners with services and amenities provided by the hotel. Whole ownership dwelling units would be considered accessory uses to an approved hotel use.

 

While there are no existing “whole ownership units” in the City, accessory whole ownership dwelling units are allowed by the Napa Municipal Code at the Stanly Ranch Resort by the Stanly Ranch Resort Master Plan under Chapter 17.30 of the Napa Municipal Code (see Section 17.30.040.B.3). If condo-hotel or whole ownership dwelling units are included in the hotel unit mix, a Tentative Map would be required and would be processed concurrently with the Design Review and any other entitlements. Prior to approval and recording of a final map, the project developer would be required to provide documents satisfactory to the Community Development Director and City Attorney and satisfying the requirements of Section 17.52.095E(5), (6) and (7), and record such documents to ensure the long-term maintenance and to govern any transient occupancy operations of the whole ownership units.

 

4.                     Food Service / Cocktail Lounge / Business open after 11:00 - The proposed PD would allow restaurants, lounges, and bar areas to remain open after 11:00 PM and utilize any portions of the dining areas within the restaurant and any rooftop bar area for lounge use during late night hours as a permitted use. A restaurant containing a lounge/bar area that exceeds 20% of the customer floor area and/or is open after 11:00 PM typically requires approval of a Use Permit.

 

5.                     Rooftop Height Exclusions - The proposed PD would allow certain rooftop features such as patios with food and bar service to exceed the height limit provided that such features are accessory to the main use of the site and are setback to minimize visibility from the street.

 

The proposed Planned Development Overlay can be found in the land use table included as an exhibit to Attachment 4. Additional explanation of the proposed PD Overlay can be found in Subsection IV.D of Attachment 13.

PARKING

 

The project site is located within the Parking Exempt Overlay District. As such, new non-hotel commercial uses (such as a restaurant or spa associated with the hotel, and the 7,000 square feet of commercial space within the parking structure) are not required to provide physical parking to mitigate their impacts; rather, they are required to pay the City’s Downtown Parking Impact Fee to offset their parking impacts, and the City combines all fee revenue to fund the construction of the centralized parking structures that serve businesses throughout the Downtown area. However, new hotel uses in the Parking Exempt Overlay District are required to construct physical parking to serve its demands, and they are not required to pay the Parking Impact Fee. The Development Agreement provides that while the retail, restaurant and related portions of the parking may be satisfied through payment of the City’s Downtown Parking Impact Fee, the project developer is required to prepare, and present to City for approval, a parking plan prior to opting to pay the Downtown Parking Impact Fee. Review of the specific project design and parking plan would occur at the Design Review stage of the Project.

The Applicant proposes to construct a mechanical parking structure at 1251 Second Street to replace 55 of the existing public surface parking spaces with 65 public parking spaces and to provide parking for the new hotel use. The requirement to construct the garage and to replace and augment existing public parking is addressed in both the purchase and sale agreement approved by the Council and the proposed Development Agreement. While the Project’s final parking requirement will be determined at the time of Design Review when the final hotel room count is determined along with other uses, the Applicant provided a conceptual plan demonstrating that the parking garage could accommodate at least 228 mechanized parking spaces.

Hotels are required to provide one parking space per sleeping room plus one space for the manager and one space for every two employees, even when the site is located in the Parking Exempt Overlay District, as is the case for this Project. If the hotel is developed at the maximum allowed room count, approximately 200 parking spaces would be required and, with the required 65 public parking spaces, there may not be sufficient space in the planned garage. However, it is important to note that mechanized parking technology is evolving and that there are various ways to include more parking in the garage and/or reduce the number of hotel rooms.

The ultimate number of hotel rooms will be determined through the Design Review process. At that time, the Development Agreement requires the Applicant to provide parking for the hotel use and the public parking, and to provide a Parking Exempt Impact Fee and parking plan to accommodate any potentially parking exempt parking that is not accommodated in the parking structure or on-site.

The parking requirements for the development and specific proposal to meet the requirements of the Development Agreement and parking demand will be known at the time of Design Review when the design is proposed along with the parking plan and garage design. The final parking plan consistent with the Development Agreement requirements will be subject to Planning Commission approval at the Design Review stage.

HISTORIC PRESERVATION

 

The Downtown Napa Specific Plan (DNSP) includes The Downtown Napa Historic Context Statement & Survey Report and the Downtown Napa Historic Resources Design Guidelines (“Guidelines”) prepared in conjunction with the Specific Plan (Page & Turnbull, 2010 and 2011). The Guidelines provide recommendations related to the maintenance and alteration of historic buildings in the Downtown area. These site-specific guidelines are referred to “Appendix G’ of the DNSP. The existing guidelines developed for the Post Office Building include specific recommendations for retention of key building features and call for retention of the Post Office use.

As previously discussed, the Franklin Station Post Office experienced considerable damage as a result of the South Napa Earthquake. Because of the extensive damage the Postal Service determine it was no longer feasible to retain the existing Postal Service use. A 2015 National Register of Historic Places (NRHP) amendment determined the following:

 

The earthquake damage affected the property's interior architectural integrity with regard to the aspect of materials. The materials of the interior at the east and west sides of the lobby have been severely compromised. Materials such as terracotta, marble, and brick were damaged, broken, and dislodged at the interior ends of the building. The central areas of the lobby's interior have less damage to the historic character defining features as the east and west sides of the building. Overall, the amount of materials lost is insufficient to result in diminished integrity of the building's interior great enough to impact the building's historic status. This amendment determines that the 2014 earthquake damage did not significantly affect the property's exterior architectural integrity of design, workmanship, materials, and location. The property continues to meet Criterion C for listing in the National Register because the qualities which caused it to be originally listed are still conveyed.

 

                     Based on the information in the amendment, the Napa Landmarks and the United States Postal Service, with consultation with the California State Historic Preservation Officer, developed a Preservation Covenant. That document was completed in consultation with Keller prior to the building's sale, and the Preservation Covenant recorded with the quitclaim deed on March 6, 2017. In addition to providing guidance, process and restrictions on the building’s preservation, the Preservation Covenant is intended to mitigate impacts to the Significant Historic Features of the Historic Building, as it exists after the earthquake and removal of the post office use.

 

The determination to amend the historic design guidelines is based on information and analyses in the pre-earthquake guidance from the Downtown Napa Historic Resources Design Guidelines, the subsequent post-earthquake National Register amendment and the Preservation Covenant, the Secretary of the Interior’s Standards for Rehabilitation and the related environmental review required under CEQA. The Preservation Covenant was the guiding influence in the development of the proposed historic guidelines that will apply to future Design Review of the hotel restoration.

The proposed guidelines (see Attachment 2, Exhibit B) include the following recommendations:

Retain

 

                     Exterior

 

                     Maintain the simple geometry of the building’s massing with the projected central core that is flanked by two recessed wings.

                     Sunken light well at primary façade à Brick cladding.

                     Granite stairs

 

                     Interior

 

                     Original cast bronze drop lights and raised-plaster ceiling.

                     Decorative terrazzo floor and marble wainscoting.

                     Raised bas relief gilt and painted plaster walls and ceiling.

                     Terracotta panel with geometricized floral pattern at each end of the central frieze and the carved Art Deco wood ornaments over the service counter.

                     Original hanging lobby lamps and original brass-framed bulletin boards.

 

Consider

 

                     Cleaning and repair of deteriorated lanterns, granite stairs, and other materials.

                     Including a superior level of architectural detailing and quality of materials in new construction that complements the historic Franklin Station Post Office. New construction need not mimic the “historic” architectural style and should avoid imitation that results in a contrived appearance or otherwise distracts from or competes with the original historic facade.

                     Replacing non-historic doors with WPA Moderne style doors.

 

Avoid

 

                     Harmful physical or chemical treatments.

                     Damage to or removal of brick or terra cotta elements.

 

Although the project design has not yet been completed, the Applicant is also requesting an initial Certificate of Appropriateness because the approval of the requested entitlements would authorize removal of portions of the Post Office building and an addition exceeding the height of the Post Office building. However, once the design of the project has been completed, the Applicant will be required to obtain approval of a second Certificate of Appropriateness and a Design Review Permit.

 

The proposed Certificate of Appropriateness requests approval to perform work on the Post Office building in accordance with revised Downtown Napa Historic Resources Design Guidelines (Appendix G pages 116 & 117) governing the Franklin Station Post Office building and site. These revised Guidelines would replace the existing Guidelines within the 2012 Downtown Specific Plan, which did not contemplate the rehabilitation that is now required to preserve the building after the 2014 earthquake. These historic guidelines would be incorporated into the PD, Planned Development Overlay proposed for the project and provide for the adaptive reuse as a hotel with rooftop, side and rear additions consistent with the site plan, scale and massing exhibits if appropriate in order to rehabilitate the earthquake damaged historic resource. The revised Guidelines were reviewed for consistency with the Secretary of the Interior Standards for Historic Preservation and are intended to meet the intent and goals of the City of Napa Downtown Historic Design Guidelines and to mitigate the impacts of the project on the Post Office building.

 

ENVIRONMENTAL REVIEW

 

The project is subject to environmental review under the California Environmental Quality Act (CEQA). An Addendum to the Downtown Specific Plan Environmental Impact Report (DNSP EIR) was prepared to analyze the site-specific impacts of the Franklin Station Hotel Project including the impacts to cultural resources, such as the Post Office Building, relative to the impacts analyzed in the DNSP EIR, which was certified upon approval of the Downtown Specific Plan. The DNSP EIR requires implementation of Mitigation Measure 4.D-1 which states that in order to reduce project-specific impacts to a less-than-significant level:

 

“The City shall require that any future development under the Specific Plan meets the intent and goals of the City of Napa Downtown Historic Design Guidelines. This includes any project that would alter historic resources or would be constructed adjacent to a historic resource.”

 

The Addendum concludes that with incorporation of the measures into the Project design, the Project will meet the intent and goals of the City of Napa Downtown Historic Design Guidelines. Therefore, with the implementation of Mitigation Measure 4.D-1, impacts to historic architectural resources are reduced to a less-than-significant level. In order to ensure compliance through the construction process, prior to the issuance of any construction or building permit, including demolition, that would potentially impact the integrity of the Historic Building, plans shall be reviewed by a qualified historical architect. Potential traffic impacts were determined to be less than significant based on a comparison of the traffic in both the baseline and anticipated development in the Specific Plan EIR.

PLANNING COMMISSION

 

On October 18, 2018, the Planning Commission considered the proposed project (see Attachment 15 - Draft Minutes Excerpt). All speakers were supportive of the project. Members of the Housing Coalition expressed concern that the future hotel project would create jobs that would lead to additional housing needs. During deliberations, Commissioners expressed their appreciation of the project and the collaboration between the City and the Applicant. The Commissioners stated that the preservation of the former Post Office was a significant act and acknowledged the expense of restoring the lobby and preserving the building. In response to concerns regarding housing needs, the Applicant expressed a willingness to meet with the Housing Coalition to discuss options for addressing affordable housing solutions. At the conclusion of the hearing, the Planning Commission voted 5-0 to forward a recommendation to the City Council to approve the project with the encouragement that the design of future buildings return to the Planning Commission for preliminary review.

 

CULTURAL HERITAGE COMMISSION

 

On October 25, 2018, the Cultural Heritage Commission considered the proposed project (see Attachment 16 - Draft Minutes Excerpt). No public comments were received. In response to a concern raised by Chair Tuikka regarding the possibility of retaining additional portions of the historic building beyond the lobby, the Applicant explained that a structural engineer would assess the building as part of a future design process and that the future design and structural requirements would dictate if additional portions of the building could be retained. All Commissioners expressed support for the project. At the conclusion of the hearing, the Cultural Heritage Commission voted 4-0-1 (Van Giesen absent) to forward a recommendation to the City Council to approve the project.

 

FINANCIAL IMPACTS:

No direct financial impact to the General Fund have been identified with this application.

 

CEQA:

City Staff recommends that the City Council determine that the potential environmental effects of the Recommended Action were adequately analyzed and addressed by a prior CEQA action as documented in the Addendum.

 

DOCUMENTS ATTACHED:

ATCH 1 - Draft Resolution: General Plan Amendment

ATCH 2 - Draft Resolution: Specific Plan Amendment

ATCH 3- Draft Ordinance: Rezoning

ATCH 4 - Draft Ordinance: Planned Development Overlay

ATCH 5 - Draft Resolution: Certificate of Appropriateness

ATCH 6 - Draft Resolution: First Amendment to Agreement on Purchase and Sale and Joint Escrow Instructions, C2017-037

ATCH 7 - Draft Resolution: Repealing Resolution Nos. 83-176 and 93-267 and

Establishing Updated Procedures and Requirements for Development Agreements

ATCH 8 - Draft Ordinance: Development Agreement

ATCH 9 - Applicant’s Project Description

ATCH 10 - Existing Historic Design Guidelines pp. 116 and 117

ATCH 11 - Franklin Station Project Addendum to the Final Program Environmental Impact Report Downtown Napa Specific Plan

EX A - Traffic Analysis for Napa Post Office Redevelopment, prepared by Kimley-Horn and Associates, Inc., dated July 2018

EX B - Historic Resource Summary and Project Evaluation, prepared by Preservation Architecture, dated August 17, 2018

EX C - Downtown Napa Specific Plan Final Environmental Impact Report Mitigation Monitoring and Reporting Program

ATCH 12 - Hotel Policy Analysis dated October 11, 2018

ATCH 13 - Planning Commission Staff Report dated October 18, 2018 (attachments removed)

ATCH 14 - Cultural Heritage Commission Staff Report dated October 25, 2018 (attachments removed)

ATCH 15 - Draft Planning Commission Minutes for the October 18, 2018 meeting (Excerpt)

ATCH 16 - Draft Cultural Heritage Commission Minutes for the October 25, 2018 meeting (Excerpt)

ATCH 17 - Link to the Downtown Specific Plan and Downtown Specific FEIR

 

NOTIFICATION:

Notice of the scheduled public hearing was provided on November 1, 2018, by US Postal Service, to all property owners within a 500-foot radius of the subject property. Notice of the public hearing was also published in the Napa Valley Register on November 2, 2018 and provided to people previously requesting notice on the matter at the same time notice was provided to the newspaper for publication. The Applicant was also provided a copy of this report and the associated attachments in advance of the public hearing on the project.