Napa County Planning Commission Board Agenda Letter

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Agenda Date: 7/20/2011 Agenda Placement: 10A Napa County Planning Commission Board Agenda Letter TO: FROM: Napa County Planning Commission Hillary Gitelman - Director Conservation, Development & Planning REPORT BY: Sean Trippi, Principal Planner - 299-1353 SUBJECT: Airport Industrial Area Specific Plan Study Session RECOMMENDATION AIRPORT INDUSTRIAL AREA SPECIFIC PLAN STUDY SESSSION Request: Presentation and summary regarding development activities in the Airport Industrial Area and recent applications to amend the Specific Plan. Recommendation: Information item, no action required. Staff contact: Sean Trippi, 299-1353 or sean.trippi@countyofnapa.org. EXECUTIVE SUMMARY In past hearings, Planning Commissioners have expressed interest regarding development activities in the Airport Industrial Area. This agenda item is intended to provide a brief history of the Specific plan, allowed uses, status of the Devlin Road extension, annexations, vacant land, recently approved but unconstructed projects, wineries, and recently requested amendments to the Airport Industrial Area Specific Plan (AIASP). This agenda item is also intended to allow further discussion of activities in the AIASP. FISCAL IMPACT Is there a Fiscal Impact? No

Page 2 ENVIRONMENTAL IMPACT ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable. BACKGROUND AND DISCUSSION History: In 1986, the County adopted a Specific Plan to address development in the Airport Industrial Area (AIA). The Specific Plan is the primary land use planning and regulatory document to guide development throughout the AIA. It sets forth goals, and detailed land use requirements for the area. The Specific Plan also includes land use regulations, development standards, design guidelines, and infrastructure requirements. An updated Specific Plan was adopted by the County in 1998 along with an EIR. The 1998 update would have superseded the 1986 AIA Specific Plan. However, in 2001, the courts overturned the County's approval of the 1998 update. Consequently, the 1986 AIA Specific plan continues to govern development in the airport area. In 2003, an MOU between the County and the City of Napa was adopted where both parties agreed to establish a multi-jurisdictional Airport Industrial Area (AIA) subcommittee to review amendments to the Airport Industrial Area Specific Plan (AIASP), General Plan amendments and other development issues in the AIA and to limit land uses to industrial/corporate uses rather than tourism/community or regional retail unless mutually otherwise agreed to as part of a market strategy for the airport industrial area. The AIA subcommittee includes two members from the Board of Supervisors and two council members from the cities of Napa and American Canyon. Also as a result of the 2003 MOU, the AIA Specific Plan was amended in 2004 to limit the location and the number of business-serving retail uses, hotels and restaurants allowed by establishing two nodes where these uses are permitted. The two areas are the Gateway Node located on the north side of Airport Boulevard between State Highway 12/29 and Devlin Road and the Devlin Resort Commercial Node located on the west side of Devlin Road, northeast of the Airport. The 1986 Airport Industrial Area Specific Plan (AIASP) originally allowed business serving retail, restaurant and commercial uses provided such uses were components of industrial parks of 30 acres or more in area and that the uses comprised no more than 20% of the total land area in the development plan. Attached are lists of allowed uses in the Light Industrial/Business Park and General Industrial areas, the accompanying Plan Summary map, and Appendix K - Retail Use Guide that was associated with the 2004 amendment. Devlin Road Extension: The AIASP has long called for a north/south road parallel to Highway 29 running the length of the specific plan area between Soscol Ferry Road and Green Island Road. It would then extend south of Green Island Road through the City of American Canyon. The County has committed, through an agreement with American Canyon, that the remaining segments within the County's jurisdiction will be constructed by the year 2018. Attached is a map showing the remaining segments within the County's jurisdiction. Construction of the segment south of Airport Boulevard will be constructed by the developers of the two properties south of Airport Boulevard between Highway and the Sheriff's facility. The segment between Airpark Road and Tower Road is in the early design phase and will likely be constructed by the County. The segment south of South Kelly Road crossing the railroad tracks is currently under construction. Since 1990, the County has been collecting a Traffic Mitigation Fee to fund improvements within the Specific Plan area. The fee is based on P.M. peak hour trips and is currently $3,351 per trip. The fund has a balance of approximately $2.3 million. Significant capital improvements in the program include interchanges at Highway

Page 3 12/29/ Airport Boulevard and Highway 29/221/Soscol Ferry Road, for which a small portion is attributable to development within the Specific Plan area. Annexations: Earlier this year, three properties at the south end of the AIASP area totaling approximately 267 acres were annexed into the City of American Canyon. Two of these properties included projects approved by the County prior to annexation. The 218 acre Headwaters property project included a 650,000 sq. ft. warehouse distribution facility on approximately 35 acres adjoining the west side of the railroad tracks. The 11.9 acre Panattoni property included approval of four buildings totaling approximately 170,000 sq. ft. located at the southwest corner of Highway 29 and South Kelly Road. Prior to this recent annexation 36 properties totaling approximately 393 acres were annexed into American Canyon. A map showing the area within the boundaries of the AIASP is attached. Unconstructed Entitled Projects / Vacant Land / Wineries: Attached is table of recent projects that includes approved but unconstructed, pending and completed projects. This list generally tracks projects from about 2006 to the present. Also attached is a map showing those properties with entitled projects that would otherwise appear as vacant properties. Although the map is not keyed to the table, the map does provide a representation of the vacant land within the AIASP that is available for development which totals approximately 331 acres. In addition, there are about 110 acres that currently include residential uses that would become conforming uses upon redevelopment of those properties. Also attached are four maps related to winery development in the AIASP. The first map indicates the location of the approved wineries and if they are producing, approved or pending. There are 12 wineries shown on the map, including Napa Smith which is currently producing only beer but has the right to produce wine. Peju is no longer located at the location shown on the map but still has a valid approval. The Planning Commission also approved a 13th winery, but that approval has expired and is therefore not shown on the map. There are seven wineries in production (including Napa Smith and Peju), four approved that are not yet constructed and one pending application. The other graphics indicated production levels, visitation, and whether tours and tastings are open to the public or by appointment only. In addition, the recently approved Rocca winery is allowed 4 marketing events per week for 50 people and 8 events per year for 50 people. The Wilkinson winery is allowed 10 marketing events per year for 20 people and 2 events per year for 100 people. Gateway winery is allowed 3 marketing events per month for 250 people. Proposed Specific Plan Amendments: In September 2009, the Board of Supervisors initiated consideration of an amendment to the AIASP that would allow additional restaurant/food service uses in conjunction with food manufacturing in the Airport Industrial area associated with the Made in Napa Valley facility. Staff recommended that the Board initiate the amendment provided Made in Napa Valley assume the role of applicant, covering the costs of staff time and any necessary consultants. Staff received a deposit earlier this year from Made in Napa Valley and will be able to process their amendment. No changes are proposed to the previously approved site plan and floor plan, attached. The Board also directed staff to process three applications to amend the AIASP that were submitted in March of this year which are summarized below: Napa 34 Holdings LLC submitted an application to allow a gasoline station with an associated convenience market and carwash that would be located at the southeast corner of Airport Boulevard and Devlin Road. There is currently an approved use permit for the 34 acre site that includes approximately 490,500 square feet of floor area in eight buildings. Two single-story office buildings with a little more than 7,500 square feet of floor area each would be replaced by the proposed gasoline station. A gas station/convenience market was approved across the street within the Gateway Commercial Node located on the northeast corner of Airport Boulevard and Devlin Road in 1998, but has not been constructed. Attached are the previously approved suite plan and the proposed site plan.

Page 4 The proposed gasoline station and associates improvements would replace office buildings "C" and "D". Airport Boulevard Realty LLC & LLC II submitted an application to increase the number of hotel rooms from 100 to 160 rooms for the Marriott hotel located at the northwest corner of State Highway 12/29 and Airport Boulevard. The hotel is within the Gateway Commercial node and is currently limited to 100 rooms by the AIASP. The 100-room Spring Hill Suites by Marriott opened in 2009. Previous approvals within this node include approximately 122,178 square feet of retail, office and restaurant floor area contained within six buildings and a gasoline station with a convenience mart and two restaurants with drive through service. To date, only a 14,570 square foot office/bank building has been constructed on the southeast corner of Devlin Road and Gateway Road East. Expansion of the hotel would necessitate a concurrent reduction in the amount of other commercial space allowed in this commercial node. Attached are the previously approved and proposed site plans. The proposed hotel expansion would replace building "H". The footprints of Buildings "D-F" would be modified to to accommodate the proposed hotel expansion. Ledcor Properties submitted an application to expand the list of uses permitted in the existing Carnera office complex located on the northeast corner of Devlin Road and Gateway Road East. The additional uses they have requested are: bank, post office or similar facility providing packing and shipping services, cold and/or dry storage including wine, wine tasting, cafe, and general retail including the sale of wine. The Carnera office complex includes four buildings totaling approximately 40,000 square feet. Only office uses are allowed. Currently, retail, banking and other professional or personal service and restaurants are allowed in the Gateway node. Restaurant and retail uses ancillary to the approved Montalcino resort are also permitted in the Devlin Resort Development. No changes are proposed to the previously approved site, attached. Proposed AIASP Amendments - Process / Next Steps: We anticipate scheduling the proposed Specific Plan amendments for hearings before the Airport Land Use Commission and Planning Commission in September with a hearing before the Board of Supervisors in October or November. SUPPORTING DOCUMENTS A. AIASP Boundary Map B. AIASP-Land Use Map & Allowed Uses C. AIASP-Appendix K, Retail Use Guideline D. AIASP-Devlin Road Extension E. AIASP-Annexations F. AIASP-Approved, Pending & Completed Projects G. AIASP-Approved Projects Map H. AIASP-Wineries I. Made in Napa Valley site & floor plans J. Napa 34 approved & proposed site plans K. Gateway Hotel approved & proposed site plans L. Carnera approved site plan Napa County Planning Commission: Approve

Page 5 Reviewed By: Hillary Gitelman