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HomeMy WebLinkAboutPC e-packet 07-06-06 CITY OF SOUTH SAN FRANCISCO REGULAR MEETING OF THE PLANNING COMMISSION MUNICIPAL SERVICES BUILDING 33 ARROYO DRIVE July 6,2006 7:30 PM WELCOME If this is the first time you have been to a Commission meeting, perhaps you'd like to know a little about our procedure. Under Oral Communications, at the beginning of the meeting, persons wishing to speak on any subject not on the Agenda will have 3 minutes to discuss their item. The Clerk will read the name and type of application to be heard in the order in which it appears on the Agenda. A staff person will then explain the proposal. The first person allowed to speak will be the applicant, followed by persons in favor of the application. Then persons who oppose the project or who wish to ask questions will have their turn. If you wish to speak, please fill out a card (which is available near the entrance door) and give it, as soon as possible, to the Clerk at the front of the room. When it is your turn, she will announce your name for the record. The Commission has adopted a policy that applicants and their representatives have a maximum time limit of 20 minutes to make a presentation on their project. Non-applicants may speak a maximum of 3 minutes on any case. Questions from Commissioners to applicants or non-applicants may be answered by using additional time. When the Commission is not in session, we'll be pleased to answer your questions if you will go to the Planning Division, City Hall, 315 Maple Avenue or telephone (650) 877-8535 or bye-mail at web- ecd@ssf.net. William Zemke Chairperson Mary Giusti Commissioner Eugene Sim Commissioner John Prouty Commissioner Judith Honan Vice-Chairperson William Romero Commissioner Marc C. Teglia Commissioner Susy Kalkin, Acting Chief Planner Secretary to the Planning Commission Steve Carlson Michael Lappen Senior Planner Senior Planner Gerry Beaudin Associate Planner Chad rick Smalley Associate Planner Bertha Aguilar Clerk Please Turn Cellular Phones And Paaers Off. Individuals with disabilities who require auxiliary aids or services to attend and participate in this meeting should contact the ADA Coordinator at (650) 829-3800, five working days before the meeting. PLANNING COMMISSION AGENDA MUNICIPAL SERVICES BUILDING 33 ARROYO DRIVE July 6,2006 Time 7:30 P.M. CALL TO ORDER / PLEDGE OF ALLEGIANCE ROLL CALL / CHAIR COMMENTS AGENDA REVIEW ORAL COMMUNICATIONS CONSENT CALENDAR 1. Approval of regular meeting minutes of May 4th, May 18th and June 1st 2006. PUBLIC HEARINGS 2. Home Depot/applicant Levitz SL San Francisc%wner 900 Dubuque Ave. P05-0035: PUD05-0003, UP05-0010, TDMO-0003, SIGNS05-0044, EIR05-0003 & DR05-0020 (Continued from June 1,2006) Environmental Impact Report assessing environmental impacts, Planned Unit Development allowing a reduced front setback; Use Permit allowing outside storage and display, Design Review allowing construction of a 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure and generating in excess of 100 daily vehicle trips; Type C Sign Program comprised of building facade signs with a total area exceeding of 1,103 square feet; Transportation Demand Management Plan reducing traffic effects, situated at 900 Dubuque Avenue in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24,20.81 & 20.85 3. CT Mobile / Kaiser Facility Kaiser Permanente/Owner Kaiser Permanente/Applicant 1200 EI Camino Real P06-0026: UP06-0012 & DR06-0071 Use Permit and Design Review allowing a mobile computerized tomography (a) imaging unit with a new fire protection wall at the rear of the Kaiser Medical Center situated at 1200 EI Camino Real in the Planned Commercial (P-C) Zoning District in accordance with SSFMC Chapters 20.24 and 20.81. ADMINISTRATIVE BUSINESS ITEMS FROM STAFF Planning Commission Agenda - Cont'd July 6, 2006 Page 3 of 4 ITEMS FROM COMMISSION ITEMS FROM THE PUBLIC ADJOURNMENT ~~v~ S Y alKln ting Secretary to the Planning Commission City of South San Francisco NEXT MEETING: Regular Meeting July 20, 2006, Municipal Services Building, 33 Arroyo Drive, South San Francisco, CA. Staff Reports can now be accessed online at: http://www.ssf.netldepts/comms/plannina/aaenda minutes.asp or via http://weblink.ssf.net SKlbla s:\Agev\'cl~$\PL~I^,,''''v\'g GO""'-""'-'$$,0V\,\::(006\07-06-06 RPG Agev\'cl~.cloc p~ge 3 of -+ Planning Commission Staff Report DATE: July 6, 2006 TO: Planning Commission SUBJECT: Use Permit and Design Review allowing a mobile computerized tomography (CT) imaging unit with a fire protection wall at the rear of an existing Kaiser Medical Center, situated at 1200 EI Camino Real in the Planned Commercial (P-C-L) Zoning District. SSFMC Chapters: 20.24 and 20.81 Owner & Applicant: Kaiser Permanente Case No.: P06-0026 (UP06-0012 & DR06-0071) RECOMMENDATION: That the Planning Commission approve a Use Permit and Design Review allowing a mobile computerized tomography (CT) imaging unit with a fire protection wall at the rear of an existing Kaiser Medical Center, situated at 1200 EI Camino Real, subject to making the required fmdings and adopting the recommended conditions of approval. BACKGROUNDIDISCUSSION: The project site is located at 1200 EI Camino Real. A residential neighborhood lies directly across EI Camino Real to the south and west, while commercial properties abut the site to the north and east. Future development of the vacant lands across the Colma Creek channel (formerly a golf driving range) is intended to be median density multi-family residential (Transit Village District). The proposed mobile computerized tomography (CT) imaging unit would replace an existing mobile magnetic resonance imaging (MRI) unit that has been at the same location for many years. The project sponsor believes that the proposed site location is optimal given considerations for staff and patient access, and power requirements. Other possible locations on-site would not be as convenient and would likely result in reducing open at-grade parking spaces. Due to fire protection requirements, the project will necessitate the construction of an 18 foot tall fire protection wall between the mobile unit and the Medical Center building. The project site's General Plan Land Use designation, Office, allows Medical Centers and ancillary facilities. The proposed mobile CT imaging unit is consistent with the Planned Commercial (P-C) Zone District subject to a Use Permit approved by the South San Francisco Planning Commission (Section 20.24.030). The SSFMC does not allow trailers for commercial uses except during construction or where it is made to appear as a permanent structure (SSFMC Section 20.24.070). Staff Report To: Planning Commission Subject: Kaiser Mobile CT Imaging Unit July 6, 2006 Page 2 of 3 The facility and wall will be visible from the back of properties fronting on Mission Road and the future South San Francisco Linear Park that will lie across the creek channel. Visual effects can be reduced by requiring that the mobile unit and the wall be finished to match the exterior of the adjacent building and that a skirt around the base of the mobile unit be required so that it appears more as a building (see condition # 3). DESIGN REVIEW BOARD The Design Review Board reviewed this application on April 3, 2006. The Board recommended that views of the mobile unit should be screened from the future linear park and properties fronting on Mission Road. The Board suggested adding a condition of approval requiring the applicant to add a 6 foot tall evergreen hedge along the perimeter property boundary fence on the opposite side of the drive aisle from a point in alignment with the southerly comer of the Medical Center building to a point extending several feet beyond the northwesterly comer of the proposed mobile unit. The Board's comments have been added as a condition of approval. ENVIRONMENTAL REVIEW Staffhas determined that the proposed project is categorically exempt pursuant to the provisions of Class 3, New Construction of Small Facilities, Section 15303 ofthe California Environmental Quality Act (CEQA). Because the project has been determined to be exempt, the Zoning Administrator is not required to taken action on an environmental document. RECOMMENDATION: The proposed development complies with the City of South San Francisco General Plan and the Zoning requirements and development standards. Conditions of approval are recommended to enhance the compatibility of the new mobile unit and the wall with the existing Medical Center and reduce views from nearby properties. Therefore, it is recommended that the planning Commission approve a Use Permit and Design Review allowing a mobile CT imaging unit with a fire protection wall at the rear of an existing Kaiser Medical Center, situated at 1200 El Camino Real, subject to making the required findings and adopting the recommended conditions of approval. z~ ~~ -- S ve Carlson, Senior Planner ATTACHMENTS: Draft Findings of Approval Draft Conditions of Approval Design Review Board minutes - March 21, 2006 Staff Report To: Planning Commission Subject: Kaiser Mobile CT Imaging Unit July 6, 2006 Page 3 of 3 Applicant's Narrative Photos Plans FINDINGS OF APPROVAL KAISER MEDICAL CENTER MOBILE CT IMAGING UNIT P06-0026 (As recommended by City Staff on July 6, 2006) As required by the Use Permit Procedures (SSFMC Chapter 20.81), the following findings can be made in support ofP06-0026 including UP06-0012 allowing a mobile CT imaging unit with a fire protection wall at the rear of an existing Kaiser Medical Center, situated at 1200 EI Camino Real, in accordance with SSFMC Chapters 20.24 and 20.81, based on public testimony and the materials submitted to the planning Commission which include, but are not limited to: Plans prepared by Brewer Fraser Holland Lotito, Architects, dated February 24,2006; Photos submitted by the applicant; Design Review Board meeting dated April 3, 2006; Design Review Board minutes dated April 3, 2006; Planning Commission staff report dated July 6, 2006; and Planning Commission meeting of July 6, 2006: 1. The mobile CT imaging unit with a fire protection wall at the rear of an existing Kaiser Medical Center will not be adverse to the health, safety or general welfare of the community; nor detrimental to the surrounding properties or improvements in that the proposed structures will be installed at the rear of the building away from EI Camino Real where they will be less visible, the mobile CT imaging unit replaces an existing similar facility at the same site location, both new structures will be painted to match the body of the abutting Medical Center, and a hedge is required to visually screen views from nearby properties. 2. The mobile CT imaging unit with a fire protection wall at the rear of an existing Kaiser Medical Center is consistent with the South San Francisco General Plan in that an imaging facility is considered ancillary to hospitals which are allowed uses at the subject site. 3. The mobile CT imaging unit with a fire protection wall at the rear of an existing Kaiser Medical Center complies with all applicable development standards and requirements of the Zoning Ordinance and all other titles of the South San Francisco Municipal Code in that the wall is required to provide a high level of fire protection for the Medical Center and the facility requires a Use Permit approved by the South San Francisco Planning Commission. * * * PROPOSED CONDITIONS OF APPROVAL KAISER MEDICAL CENTER MOBILE CT IMAGING UNIT P06-0026 (As recommended by City Staff on July 6, 2006) A. PLANNING DIVISION: 1. The applicant shall comply with the City's Standard Conditions and with all the requirements of all affected City Divisions and Departments as contained in the attached conditions of approval. 2. The construction drawings shall substantially comply with the plans approved by the Planning Commission, prepared by Brewer Fraser Holland Lotito, Architects, dated February 24,2006, as amended by the conditions of approval. 3. Prior to the issuance of the Building Permit, the final construction plans shall be include that the mobile CT imaging unit and the 18 foot tall fire protection shall be finished to match the building exterior, and that a continuous skirt be installed around the base of the mobile CT imaging unit finished to match the mobile unit. The design and finishes shall be subject to the review and approval by the City's Chief Planner. 4. Prior to the issuance of the Building Permit, the construction plans shall include a landscape plan providing for a 6 foot tall evergreen hedge along the fence perimeter opposite the mobile CT imaging unit and portion of the adjacent Medical Center building and an automatic irrigation plan. The plans shall be subject to the review and approval by the City's Chief Planner. (Planning Contact: Steve Carlson, Senior Planner, (650) 877-8535) B. BUILDING DIVISION 1. Provide identification of all exit doors and exit paths passing by the new unit. 2. Description of the new 4 hour wall construction. 3. Additional comments at plan review. (Building Contact: Jim Kirkman: Building Official, (650) 829-6670) C. POLICE DEPARTMENT 1. Municipal Code Compliance The applicant shall comply with the provisions of Chapter 15.48 of the Municipal Code, "Minimum Building Security Standards" Ordinance revised May 1995. The Police Department reserves the right to make additional security and safety Proposed Conditions of Approval P06-0026 Page 3 of2 conditions, if necessary, upon receipt of detailed/revised building plans. 2. Miscellaneous Security Requirements This mobile trailer must be equipped with a centrally monitored audible alarm system, and secured when not in operation. On-site security personnel will make frequent and routine checks to assure this mobile facility is secure. (Police Department contact: Sergeant E. Alan Normandy (650) 877-8927) D. WATER QUALITY CONTROL DIVISION 1. Plans should indicate if the mobile unit is connected to the sanitary sewer system. Plans should indicate how waste will be dealt with. 2. Fire sprinkler system test/drainage valve should be plumbed into the sanitary sewer system or collected and disposed of in sanitary sewer. (Water Quality Control: Cassie Prudhel, Water Quality Control Coordinator (650) 829-3840) DRB Agenda March 21, 2006 Page 4 of9 9. 10. 11. OWNER APPLICANT ADDRESS PROJECT NUMBER PROJECT NAME ESTIMATED TIME Kaiser Permanente Kaiser Permanente 1200 El Camino Real P06-0026 & UP06-0012 CT Mobile / Kaiser Facility (Case Planner: Steve Carlson) DESCRIPTION Use Permit to allow a mobile imaging unit with a new fIre protection wall to be installed in the parking lot of the Kaiser Medical Center in the Planned Commercial (P-C) Zoning District in accordance with SSFMC Chapters 20.24, 20.81 The Board had the following comments: 1. Add a 6' tall evergreen hedge along the fence to the corner of the building. OWNER APPLICANT ADDRESS PROJECT NUMBER PROJECT NAME California Water Service Co. Cingular Wireless 480 Grandview Dr P06-0020, UPM06-0002 & DR06-0028 Cingular Wireless Use Permit (Case Planner: Steve Carlson) DESCRIPTION Use Permit ModifIcation and Design Review allowing a wireless communication facility consisting of six (6) fence mounted antennas and an underground vault for equipment cabinets, situated at 488 Grandview Drive in the Planned Industrial (P-I) Zoning District in accordance with SSFMC Chapter 20.81,20.85 & 20.105. The Board approved the application as submitted. OWNER APPLICANT ADDRESS PROJECT NUMBER PROJECT NAME Steven P. Silvestri AKC Services, Inc 555 El Camino Real P05-0 172 & Signs05-0059 Type C Sign - Dollar Tree (Case Planner: Steve Carlson) DESCRIPTION Type "C" Sign Permit to install signs in excess of I 00 sf of new signage situated at 555 El Camino Real in the Retail Commercial (C-l) Zone District in accordance with SSFMC Chapters 20.22, 20.85 & 20.86. The Board had the following comments: I. Use a maximum 6-inch wide raceway. 2. Consider replacement of planting "T-3" Toyon with a tree species, recommend Arbutus Marina. 3. Consider replacement of Azalea Formosa with a hardier plant. 4. Consider planting street trees along El Camino Real, recommend Purple Leaf Plum DINNER BREAK 6:20P.M. . February 23, 2006 Steve Carlson Senior Planner Department of Economic and Community Development 315 Maple Avenue South San Francisco, CA 94083 Re: Application to Locate a Mobile CT Unit Project: Kaiser Permanente P AF 135-639, KPSSF07 Dear Mr. Steve Carlson, Kaiser Permanente and BFHL Architects are submitting this package for review by the City of South San Francisco Planning Commission. The project is to locate a Mobile CT Imaging Unit at the current location of a Mobile MRI Imaging Unit. The current unit is connected to the Hospital "I" occupancy building. A new connection has been installed to provide power from the Medical Office Building, a "B" occupancy building. This requires a separation of "occupancies". Through code research and consultation with the hospital staff including, Inspector of Record (lOR), state OSHPD Area Compliance Officer (ACO), state Fire Marshall Representative, and City of South San Francisco Fire Marshall a 4 hour separation wall could be built to meet the separation requirements. The wall will need to be 36'-0" long 18'-0" tall located 4'-0" from the Hospital. The approach is to make the wall as minimally invasive to the site as possible yet meeting all the structural requirements to construct the wall. We are providing a Hospital site plan, enlarged area of Mobile unit location, elevations, existing photos of the site, and photo rendered drawings approximating the appearance of the wall. Sincerely, ~~~ David A. Shes ton cc: Renato Beltran Carolyn Van Niel Ralph Lotito Andy Crocker Brewer Fraser Holland Lotito, Architects 1/.1. San.rome Slnel. SUlie 1300, San Frandfco. C/19+10+ (+15) 981-23+5 j(+15) 981-23+3 11J/ler "~ ~..; ~ 1 I ;~.~. 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'. , .. ... ~. .. ... .' .... . ~. .... ...... ~.=:.:. .....': ...~.. ...,:~.- .... \.:. ..:- .... . .r'.:'O.. ..:.,.. ... ...... :. ~::;...:..." ....: ::....- ...::. -:.,.- .:.-... .'- ... .: : ..,:.. :. ?..... . .~. ., : .' : .. . ,. .. ". . e... '- .. I ,-:. -. .... :...... :--.. ... .. '. .... .... -:.: .": ~..... .~ ... .-..... ... ;. . -. .' . '- ~- . -:. . . - .-. ... .-.: . :-'- ....~. '. '. ... :. -. . ....:. . ... . '. ,. . ':,. . " .... : .... ~ CD1i\9~\I:~ l1~V~!J: PLAN -- -- -------- - -------------- -- -- --------- -- -- --------- -- ---- ---. CB iii KAISER PeRMAN:NTE Kaiser Foundatfon Health F'ton. Inc. fodlltles Development Post Office 8011 12916 OokIand. Califomia 94604 R. ion.: '': .... """ 8. 8. 8. _teet: . --.....-- 11.s...__ s......I300 S-'--..,CMfocnio 9'lllN I I "u~,,,,, ''''~,~c ConlUltonts/Con tractor. BKF ENGINEERS SURVEYORS PLANNERS 2737 N. MAIN SlREET 6200 WALNUT CREEK. CA 94597 p.925.94O.2200 1.925.940.2299 KPFF STRUCTURAL ENGINEERS 1160 BATTERY SlREET, SUllE JOO. SF. CA 94111 p.415.989.-1004 1.415.989.1552 This docwn.,t rs the prop.-t:y of the Owner and Is not to ~ used without wrftt.1 permission. ProjKt An::*'lt.ct ApproYOl: Ard'lite<:t/Engineer Of Rooord: Faclity. SOUlH SAN FRANCISCO MEDICAl CEN TER 1200 EL CAMINO REAL. SOUlH SAN FRANCISCO. CA 9 ~080 Project TIll.: MOBILE CT IMAGING UNIT Sheet TItle: MOBILE CT UNIT- SITE PLAN FGC "0.:04,)5 IIdg No:01 ~ lev.a Sectlon:- PI1FI: 1.>>-4.l8 P.mft or OSHPO No. ..... Sed<< AS HOlED Onnln 8y. N1 av.ckft By: OAS A2.0 ...,. Dote 02.24.08 Of Sh.t. I I IF=. F9 F9 I'=' b:! [J CD 10D D D 10 C 0 C D '==! ~ '-- 0 ""'" '==" [J DD DC D D D C D D D ~ '-- L- '-- lJ (J h [J CO DC D C D D 10 C [] I'==! (E) EN<:lOSED WAU<WA Y '-- L- l r:_.>_cr~' I J (E) HOSPITAl (E) MOO Illllilll MOBILE CT UNIT ELEVATION N.T.S. iii I(AI5ER PERMAN:NTE Kaiser Found<JUon Health Plan. Inc. f"ocfIlties Development Post Office 80x 12916 Oddc:md. California 94604 R. ionE .,:.... ~ 8. 8. 8. An::hIb,~ . --.....-...... 114__ s..;",uoo s.r--...,ColiIiomio. 9<110. I I ,..un,"" "3.''''' ConlUltonta/Contractor: BKF ENGINEERS SURVEYORS PLANNERS 2737 N. MAIN SlREET #200 WALNUT CREEK. CA 94597 p.925.940.2200 1.925.940.2299 KPFF STRUCTURAL ENGINEERS 1160 SA TTERY STREET, SUITE JOO. SF, CA 94111 p.415.989.-1004 1.415.989.1552 This doc.ment Is the property of th4l Owner and hi not to be uMd without wrftbn permIssion. ProJ-ct Architect ApprcYOl: An::tIitectj'Engineer Of Record: Foelit)': SOUTH SAN FRANCISCO MEDICAL CENTER 1200 EL CAMINO REAL. SOUTH SAN FRANCISCO, CA 94080 Project Tille: MOBILE CT IMAGING UNIT Sheet Tit..: MOBILE CT UNIT- ElEVATION Foe No:OlJS Bdf Ho::Ct1 Actor lAY.O s.:tlon:- PW#.1~ P.mlt or ost-FO No. ...... $ode: AS NOTED OrcIwn By. NH Ch-*H By: OAS laue Dote: 02..24.06 A5.0 01 ShMts Planning Commission Staff Report DATE: July 6, 2006 TO: Planning Commission SUBJECT: 1. EIR assessing the environmental impacts associated with a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure. 2. Planned Unit Development Permit allowing parking in a portion of the front setback. 3. Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate. 4. Design Review of a 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure. 5. Transportation Demand Management Plan reducing vehicle trips. 6. Type C Sign Permit allowing a master sign program consisting of new building fa<;ade signs with a total sign area of 1,103 square feet. Address: 900 Dubuque Avenue (APN 015-021-090 & SBE 135-41-41 PAR.1) Zone: Planned Commercial Zoning District (P-C-L) SSFMC Chapters: 20.24, 20.74, 20.81 & 20.86. Owner: Levitz SL San Francisco Applicant: Home Depot Case Nos. P05-0035 (PUD05-0003, UP05-0010, TDMO-OOO3, SIGNS05-0044, DR05-0020 & EIR05-0003) RECOMMENDATION: That the Planning Commission adopt a resolution recommending that the City Council certify 1) EIR assessing the environmental impacts associated with a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure including a Statement of Overriding Considerations; and approve 2) Planned Unit Development Permit allowing parking in a portion of the front setback; 3) Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 July 6, 2006 P05-0035 Home Depot Page 2 of 10 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; 4) Design Review allowing a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fa~ade signs with a total sign area of 1,103 square feet, subject to adopting the conditions of approval. BACKGROUND: The proposed development was reviewed by the Planning Commission at their meetings of May 18 and June 1,2006. At the first meeting, the Commissioners expressed general support for the Alternative Plan, but directed that the applicant improve the visual appearance, making the building and garage appear less as a warehouse and more as a landmark retail facility, eliminate the pole sign and enhance the garage access. The Commission continued the matter to the meeting of June 15, 2006. At the meeting the applicant requested to continue the matter to the Planning Commission meeting of July 6th to allow the applicant to complete the plan revisions requested by the Commissioners. At the June 1 st meeting the Commissioners expressed general support for the revised Alternate Plan, but offered additional comments regarding the building exterior (especially the garden area enclosure), architectural detailing, garage deck landscaping, screening of the loading and outdoor storage areas, and signs. The Planning Commission directed that the applicant provide more perspectives of the proposed development and neighboring buildings, provide on-site traffic controls (e.g. no left turn signs on the main aisle way to the garage), provide landscape details of the upper garage roof deck, more details of the architectural elements (e.g. exterior lights), more details of the signs, cart storage and cart corrals, and visually screen the loading, dock and outside storage areas from views from adjacent properties and Dubuque A venue. The Commission continued the matter to the meeting of June 15th. The applicant has revised the plans to incorporate many of the Commissioners comments. The loading area has been reoriented and screened so that it is not visible from the street, the site plans shows the cart storage facilities, the site plan includes the garage stair near the elevators, a comprehensive view of the three developments on Dubuque Avenue is included in the plan set, the garage roof plan is revised showing landscaping, and the location of the trellises and light poles, and the sign program has been revised. The applicant's narrative describing the revisions is attached to the staff report. Project Overview The 7.62 acre project site is situated at 900 Dubuque Avenue, and is bounded on the west and north by Dubuque Avenue and Highway 101, on the south by single-story office buildings and services, and to the east by railroad right-of-way. July 6, 2006 P05-0035 Home Depot Page 3 of 10 PROJECT DESCRIPTION The proposed development involves the demolition of the existing Levitz building totaling 126,326 square feet and the construction of a 101,171 square foot one-story Home Depot building material store, an adjoining 24,215 square foot outdoor Garden Center and Nursery, and a small seasonal outdoor sales and display area. Parking for a minimum of 462 passenger vehicles will be provided in a two level garage and an open on-site parking lot. Proposed Use The proposed development is for retail sales of building supplies, lumber, hardware and associated items such as appliances, barbeques, pool accessories, home furnishings, patio furniture and materials associated with home improvement and maintenance. The proposed outdoor Garden Center and Nursery would provide for retail sales of plant and nursery items. It is anticipated that the store will also provide rental tools and equipment to be leased for construction, gardening and home improvement projects. It is expected that sales activity will also include propane, trailers and sheds. On-site truck rentals will probably occur and the site may have several outdoor independent food vendors. The project will include outdoor sidewalk sales and display of special products, such as plant and nursery materials, barbeques, outdoor patio furniture, tools and seasonal decor in the parking lot area. Seasonal sales events of items such as pumpkins and holiday trees and wreaths, would take place near the Garden Center. Seasonal sales events are estimated to be 4 times per year. Store Operation The project will require delivery of heavy merchandise. Items will be off-loaded at the loading docks on the northerly end of the building and brought inside with forklifts. The store operating hours are typically 6 AM to 10 PM with the option of remaining in operation 24 hours per day. Truck deliveries would occur throughout the day and may include 24 hour deliveries. Outdoor storage of garden and display materials and periodic outdoor sales events are part of the store operations similar to other garden and material centers. The store will employee an estimated 150 - 175 full-time and part-time employees primarily derived from local communities. It is assumed that managers and employees will be transferred from other stores to maintain quality of service and operational consistency. The shifts are likely to number 2 to 3 per day with more shifts if the store operates on a 24 hour basis. Approximately 50 to 75 employees are anticipated per shift. Entitlements The applicants are requesting several entitlements including a Planned Unit Development to allow a slight reduction from minimum required front setback for a small portion of the parking area along Dubuque Avenue; a Use Permit allowing outdoor sales, outdoor storage, a use July 6, 2006 P05-0035 Home Depot Page 4 of 10 generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; a Type C Sign Permit for a master sign program with a total area of 1,103 square feet; Design Review of the proposed improvements; and a Transportation Demand Management Plan (TDM) to reduce traffic impacts. An Environmental Impact Report (EIR) with the likelihood of significant unavoidable cumulative traffic impacts will require the development proposal to be reviewed by both the City Council and Planning Commission. DISCUSSION: The General Plan Land Use designation of the project site is Business Commercial and the site is situated in the Planned Commercial (P-C) Zoning District. The proposed development is consistent with both the General Plan and the Zoning Ordinance. The General Plan principles, policies and goals and the East of 101 Area Plan (specifically Land Use Policy LU-4a) strongly encourage the retention of existing retail uses especially along the US 101 frontage. The P-C Zoning (SSFMC Chapter 20.24.020) allows retail uses. DEVELOPMENT STANDARDS The building generally complies with current City development standards as displayed in the following table: DEVELOPMENT STANDARDS Total Site Area: 7.62 acres [331,927 SF] Height Maximum: 50FT Proposed: 35 FT Floor Area Ratio: Maximum: 1.0 Proposed: 0.31 Floor Area Maximum: 331,927 SF Proposed: 101,171 SF Lot Coverage: Maximum: 50% Proposed: 38.4% Landscaping: Minimum: 10% Proposed: 10% Automobile Parking Retail Minimum: 627 Proposed: 462 Setbacks Front Minimum: 20FT Proposed: 6FT July 6, 2006 P05-0035 Home Depot Page 5 of 10 North Side South Side Rear Minimum: 0 FT Proposed: 145 FT Minimum: 0 FT Proposed: 44 FT Minimum: 15 FT Proposed: 6 FT Note: An exception is requestedfor the parking in the front setback. Parking The SSFMC Section 20.74.060 (g) Multi-Tenant Retail/Commercial, requires parking to be provided at a rate of 1 parking space per each 200 square feet. Applying this rate to the development would result in a parking requirement of 627 spaces. The applicant has conducted a parking study of existing Home Depot facilities in the region and in accordance with the study results, proposes to reduce the parking rate to 3.7/1,000 SF and a total of 462 spaces. A TDM Plan, which is also required, will assist in reducing the employee parking demand and thus parking spaces need. The parking study is attached to this staff report. The Institute of Traffic Engineers (ITE), a highly regarded engineering institute referenced in the SSFMC, has recently examined the parking requirements for big box retail stores. The ITE identifies a range of average peak rate of2.43/1,000 SF to 3.40/1,000 SF and a peak hour rate of 3.20/1,000 SF to 4.40/1,000 SF. Applying the higher rates would result in sufficient parking for the weekdays, but may create a possible shortfall of parking spaces during the peak hours on Saturday. While the applicant does not anticipate a parking shortfall (based on their parking survey), possible ways to address the potential shortfall are to require a TDM Plan or require that employees park off-site and be shuttled to the store. The TDM Plan, which is required by SSFMC, is reviewed in this staff report in a following section. The SSFMC Chapter 20.74 allows the City to determine separate parking rates for unique uses. Staff supports the proposed rate of 3.7/1,000 SF, because it is supported by both the applicant's parking data and falls within the ITE parking range for big box retail uses. Planned Unit Development The development generally complies with the minimum setbacks required for a commercial development. The applicant is requesting an exception vis-a-vis a Planned Unit Development Permit (PUD) to reduce the minimum required front setback of 20 feet to 6 feet to accommodate some open at-grade parking spaces along a portion of Dubuque Avenue. This is necessary owing to the unusual lot configuration, the street widening to allow a left turn pocket and the desire to provide sufficient parking. Landscaping will be provided along the frontage that will help soften the appearance of the site. The PUD allows reductions where the City finds that the community July 6, 2006 P05-0035 Home Depot Page 6 of 10 benefit outweighs the exception (SSFMC Chapter 20.84). City staff supports the reduction as the development will provide a service and range of products not commonly found either in the community or in one location and will provide job opportunities and significant economic benefits. Landscaping & Screening The proposed landscaping of 3,320 square feet complies with the City's minimum requirement of 10% of the total site area (SSFMC Section 20.73.040). The area between the property line and the sidewalk along Dubuque Avenue is proposed to be landscaped to a depth of 6 feet between the parking stalls and the property line. The garage design has also been revised to incorporate landscaping of the upper garage deck, thereby softening views from the intersection of Dubuque A venue and Oyster Point Boulevard and surrounding streets. Outdoor storage of garden and display materials and periodic outdoor sales events are part of the store operations similar to other garden and material centers. Views of the garden center and outdoor displays will be screened from the street either by fencing or due to the placement of the garage in close proximity to the building. The SSFMC Chapter 20.24 allows these activities subject to an approved Use Permit. A condition has been added that requires that the site be maintained in an attractive manner and free of debris. Signs The signs consist of new fayade signs. The total sign area amounts to an estimated 1,103 square feet. A Type C Sign Permit is required because the total sign area exceeds 300 square feet (SSFMC Chapter 20.86). The total sign area is in keeping with the site size and the nature of the use. The pylon sign has been further refined and integrated with the building. The revised sign design and colors generally appear to reflect the building design and color scheme. Transportation Demand Management Plan The development requires a Transportation Demand Management Plan (TDM) because it will generate in excess of 100 average daily vehicle trips (SSFMC Chapter 20.120). Because the development may also generate 100 vehicle trips in the peak: commute hour, the TDM Plan is also required to be reviewed by the San Mateo County City and County Association of Governments (C/CAG). The TDM Plan would by practicality be focused on the store employees and not the customers and designed to achieve a minimum 28% alternative mode use, consistent with the request to allow an FAR of 0.38. The TDM Plan would be modeled on a TDM Plan accepted by C/CAG for the East Palo Alto IKEA store. City staff has reviewed the lKEA Plan and discussed the plan with C/CAG representatives. Based on these conversations, City staff is confident that the C/CAG will accept a TDM Plan modeled on the lKEA plan. The TDM plan will need to be slightly modified to include all City mandatory elements, such as showers and locker facilities, July 6, 2006 P05-0035 Home Depot Page 7 of 10 participation in shuttle programs, carpool and vanpool ride matching, guaranteed ride home program, secure bicycle parking, and an on-site program coordinator. The Preliminary TDM Plan is attached. Both the home improvement parking rate and the TDM Plan are consistent with the City's General Plan, as delineated in the following policies: "4.3-1-11 Establish parking standards to support trip reduction goals by: . Allowing parking reduction for projects that have agreed to implement trip reduction methods. 4.3-1-12 Amend the Zoning Ordinance to reduce minimum parking requirements for projects proximate to transit stations and for projects implementing a TDM program." DESIGN REVIEW BOARD The proposed development was reviewed by the Design Review Board (DRB) at their meetings of March 15,2005 and May 17,2005. At the first meeting the Board offered the following comments: 1. Continue the building detailing onto the south and west elevations, not just on the north and east elevations. 2. Single-pole freestanding can signs are not encouraged. Consider a different type of design such as a pylon sign. 3. Consider incorporating rooftop parking over the store to reduce the height of the proposed parking structure. The 3-story parking structure, as it is, overwhelms the view from south bound Highway 101 4. A lot of the species on the plant list will not do well in SSF. Revise the plant schedule using species that are better suited to SSF's climate. Consider using some of the trees from the opposite side of the street; Magnolias and flowering pear trees are the most common types. 5. The trees around the parking structure need to be taller. 6. Provide more detail on the landscaping at the main entry driveway between the two buildings. 7. Use creeping fig or boston ivy on the parking structure. 8. Plant trees along the south and west property lines 9. Revise plans and resubmit to the DRB for further review. The architect revised the plans and re-submitted for Board review. At the second meeting the Board determined most of the previous comments had been addressed but offered two comments: July 6, 2006 P05-0035 Home Depot Page 8 of 10 1. Do not use internally illuminated can signs; use external lighting or individually illuminated channel letters. 2. Consider grouping the roof mounted equipment and using roof screens. The Board was otherwise pleased with the design changes and recommended approval of the design. The Board's comments made at the May 17th meeting will be made into conditions of approval. SPECIAL JOINT CITY COUNCIL & PLANNING COMMISSION STUDY SESSION The City Council and the Planning Commission conducted a joint Study Session on October 5, 2005. At the meeting the comments were made by Council members, Commissioners, Kamala Silva Wolfe and Nick Tentes. The key comments offered by the Council and Commission members included, but are not limited to, improving views of the garage roof from the Dubuque Avenue/Oyster Point Boulevard intersection, and improving on-site circulation. In response to the Council and Commission member's comments, the development proponent has revised the plans to add landscaped trellises on the upper garage level to soften views from the street, revised the on-site aisle ways to provide improved on-site circulation, and added a left- turn pocket to facilitate safe access. The applicant has also proposed an alternate plan that would add more on-site parking. Ms. Wolfe and Mr. Tentes offered comments regarding the environmental impacts and the development's effect on local businesses. Ms. Wolfe offered a dozen questions regarding the following proposed developments: Terrabay Phase III, Home Depot and Lowe's. With the exception of a couple of the questions, the majority of comments are addressed in the Draft Environmental Impact Reports (DEIR). Separate DEIRs are being prepared for each development. Their comments regarding the development's effect on local businesses, especially the hardware store on Grand Avenue and the lumber yard on South Spruce Avenue, are addressed in an economic study that is attached to the staff report. The report, prepared by CB Richard Ellis, concludes that the proposed development would have a negligible effect. Ms. Wolfe and Mr. Tentes have been sent notices ofthe availability of the Home Depot DEIR and the public comment period, the Planning Commission's DEIR public meeting and the Planning Commission hearing. Ms. Wolfe also asked questions regarding the estimated revenue generated from the building material store, cost ofthe DEIR, and the process and criteria utilized to select the EIR consultants. The revenue to the City is based primarily on sales tax and property tax. The store is anticipated to generate gross sales of upwards of$40 million per year, resulting in an annual revenue stream of approximately $400,000 to the City. July 6, 2006 P05-0035 Home Depot Page 9 of 10 The costs ofthe DEIR and staff time are borne by the applicants. The City's standard criteria for evaluating any consultant were utilized. These criteria include, but are not limited to the following: comprehension of work, experience, expertise, knowledge of CEQA, cost, ability to accomplish the work in the requested time frame, ability to work with City staff and the public, and ability to secure adequate insurance. The process followed included sending out Request for Proposals (RFPs) to three EIR consulting firms (two firms responded) and reviewing the proposals. The selection process was conducted by City staff and included telephone interviews with the consultants. The RFP distribution was limited as per guidance from American Planning Association. ENVIRONMENTAL DOCUMENT City staffhas employed the services of Lamphier and Gregory to prepare and circulate an Environmental Impact Report (EIR) for public comment. The document was circulated for 45 days for public comment from January 31,2006 to March 17,2006, in accordance with the California Environmental Quality Act (CEQA). The Planning Commission also conducted a public hearing on March 2, 2006 allowing public comments, however, the only comments made were by the Planning Commissioners. Written comments were received from a couple of agencies with the most notable comments offered in several letters by CalTrans. In addition to numerous telephone conversations, a meeting was conducted with CalTrans representatives on Apri127, 2006 to review their comments. Written responses to comments are contained in the FEIR. The key environmental issue identified by City Staff is traffic. Mitigation measures are proposed to reduce many of the identified impacts to less than a significant level. However, significant cumulative traffic impacts attributable to the development and other known developments will occur and cannot be feasibly mitigated. A Mitigation Monitoring Program will be required to be prepared prior to the issuance of any permits. The project proponent has recently revised the site plan to improve parking and circulation thereby reducing some of the traffic impacts. The revised plans now reflect the provision of a left-turn pocket on Dubuque Avenue providing better and safer site access. The applicant is also proposing to improve on-site circulation, as suggested by the City's traffic consultant and is proposing to increase the amount of parking; both of these improvements are not considered environmental impacts and do not require mitigation, but will help ease on-site congestion. Another CalTrans letter was received June 1,2006. The City's consultant and City staff are preparing a response that will be available at the Planning Commission's June 15th meeting. The letter is attached. Should the City desire to approve the development, CEQA requires the City to adopt a Statement of Overriding Considerations identifying that the project benefits outweigh the cumulative unmitigateable significant impacts. July 6, 2006 P05-0035 Home Depot Page 10 of 10 Because the project involves an EIR, with a Statement of Overriding Considerations regarding long-term cumulative traffic impacts, the EIR will also be required to be certified by the City Council. CONCLUSION/RECOMMENDA TION: The proposed development complies with the General Plan, the Zoning Code and the City's development requirements. Therefore, City staff recommends that the Planning Commission adopt a resolution recommending that the City Council certify 1) EIR assessing the environmental impacts associated with a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure including a Statement of Overriding Consideration; and approve 2) Planned Unit Development Permit allowing parking in a portion of a front setback; 3) Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; 4) Design Review allowing a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fac;ade signs with a total sign area of 1,103 square feet, subject to adopting the conditions of approval. Attachments: Draft Resolution with Exhibits A - Finding Concerning Alternatives B - Draft Statement of Overriding Considerations (EIR) C - Mitigation Monitoring Program Draft Conditions of Approval Joint City Council Planning Commission Study Session Minutes October 5, 2005 Planning Commission Minutes June 1, 2006 (Draft) May 18, 2006 (Draft) March 2, 2006 Design Review Board Minutes March 15, 2005 May 17,2005 Applicant's Project Description and Development Narrative Photos July 6, 2006 P05-0035 Home Depot Page 11 of 10 Plans CBRE Economic Study Preliminary TDM DKS Parking Study DEIR & FEIR (Copies of the DEIR were previously provided to the Planning Commission and both the DEIR and the FEIR are available at the city's website at www.ssfnet and will be available at the Commission meeting.) RESOLUTION NO. PLANNING COMMISSION CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION RECOMMENDING CERTIFICATION OF THE FINAL ENVIRONMENTAL IMPACT REPORT, INCLUDING SIGNIFICANT AND POTENTIALL Y SIGNIFICANT IMPACTS, FINDINGS CONCERNING AL TERNA TIVES, A STATEMENT OF OVERRIDING CONSIDERATIONS, AND A MITIGATION MONITORING PROGRAM, AND APPROVAL OF ENTITLEMENTS, INCLUDING A PLANNED UNIT DEVELOPMENT, USE PERMIT, DESIGN REVIEW, TRANSPORT ATION DEMAND MANAGEMENT PLAN, AND TYPE C SIGN PERMIT FOR A NEW 101,171 SQUARE FOOT HOME DEPOT FACILITY AT 900 DUBUQUE AVENUE WHEREAS, Home Depot has applied to demolish the existing Levitz furniture building at 900 Dubuque Avenue and in its place construct a 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, and a two-level parking structure ("Project"); and WHEREAS, the entitlements proposed would provide for (1) construction of the Project; (2) a Planned Use Development allowing parking in a portion of a front setback; (3) a Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hours daily operation and determination of a parking rate; (4) Design Review allowing a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, and a two-level parking structure; (5) Transportation Demand Management Plan reducing vehicle trips; and (6) Type C Sign Permit allowing a master sign program consisting of new building fayade signs, and a double-faced monument sign, with total sign area of 1,103 square feet, subject to adopting the conditions of approval; and WHEREAS, a Notice of Preparation for a Draft Environmental Impact Report ("DEIR") was issued on February 1,2006, informing all interested parties of the City's intention to prepare an Environmental Impact Report; and WHEREAS, a DEIR was prepared evaluating the significant and potentially significant impacts of the development, the growth inducing impacts of the development, the cumulative impacts ofthe development, and alternatives to the proposed project; and WHEREAS, the DEIR analyzes two alternatives to the Project, including a no project alternative; and WHEREAS, the public review period on the DEIR commenced on January 31, 2006, and closed on March 17,2006; and WHEREAS, the City prepared responses to comments on environmental issues received during the public review period and at the public hearings, which responses clarify and amplify the information contained in the DEIR, providing a good faith reasoned analysis supported by factual information. The comments and responses to comments were published in a Final Environmental Impact Report ("FEIR") dated May 2006, which incorporated the DEIR; and WHEREAS copies of the FEIR were distributed or otherwise made available to the Planning Commission, responsible agencies, and other interested parties; and WHEREAS, based on the FEIR and other information in the record, there are impacts of the Project which are not environmentally significant and which require no findings or mitigation upon approval; and, WHEREAS, based on the FEIR and other information in the record, there are certain significant and potentially significant environmental impacts of the Project which could be mitigated to a level of insignificance, therefore mitigation findings are required pursuant to CEQA S21081 and CEQA Guidelines S15091 upon Project approval; and, WHEREAS, based on the FEIR and other information in the record, there are significant and potentially significant impacts ofthe Project which could not be mitigated to a level of insignificance, therefore the alternatives to the Existing Project were examined to determine if they would avoid any of the unmitigated significant impacts; and, WHEREAS, based on the FEIR and other information in the record, there are significant and potentially significant environmental impacts of the Project which could not be reduced to a level of insignificance, therefore a Statement of Overriding Considerations is required upon Project approval; and, WHEREAS, CEQA S21081.6 requires that where mitigation findings are made for significant and potentially significant environmental impacts, a mitigation monitoring and reporting program shall be adopted upon Project approval to ensure compliance with the mitigations during project implementation; and, WHEREAS, the above-referenced mitigation and monitoring program shall be submitted concurrently with the precise plan for the Home Depot site; and WHEREAS, the location and custodian of the documents which constitute the record of proceedings upon which the City's decision on entitlements relating to the FEIR is the City of South San Francisco Planning Division, 315 Maple Avenue, South San Francisco; and, WHEREAS, the mitigation measures identified in the FEIR will be applied as conditions of Project approval. NOW, THEREFORE, BE IT RESOLVED that the foregoing recitals are true and correct and made a part of this resolution, and that the Planning Commission of the City of South San 2 Francisco hereby adopts the following findings based upon the entire record for the Home Depot development, including without limitation, the South San Francisco General Plan, the Home Depot initial study and Environmental Impact Report, and the comments received in response the Draft Environmental Impact Report, site plans, floor plans and elevations revised June 28, 2006 prepared by Greenberg Farrow, the proposed Planned Unit Development, the proposed Use Permit, the proposed Transportation Demand Management Plan, the proposed Type C Sign Permit, the Design Review Board meeting and minutes of March 15,2005, the Design Review Board meeting and minutes of May 17,2005, the Special Joint City Council and Planning Commission study session of October 5, 2005 and testimony and materials submitted at this meeting, the Planning Commission staff report of May 18,2006; the Planning Commission meeting of May 18, 2006; the Planning Commission staff report of June 1, 2006; the Planning Commission meeting of June 1, 2006; the Planning Commission staff report of July 6, 2006, and the Planning Commission meeting of July 6, 2006: 1. Environmental Impact Report. As required by the California Environmental Quality Act (CEQA) [Pub. Res. Code SS 21000 et seq.], the following findings are made in approval of a Final Environmental Impact Report and Statement of Overriding Considerations, allowing development of a home improvement retailer situated at 900 Dubuque A venue in the Planned Commercial Zoning district, subject to making the findings of approval and, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised June 28, 2006 prepared by Greenberg Farrow; the Home Depot Initial Study and Environmental Impact Report; Design Review Board meeting of March 15,2005; Design Review Board meeting of May 17,2005; Design Review Board minutes of March 15,2005; Design Review Board minutes of May 17,2005; the Planning Commission's public hearing on March 2,2006, a meeting with CalTrans on April 27, 2006, comments received on the Draft Environmental Impact Report and incorporated into the Final Environmental Impact Report, Planning Commission staff report of May 18,2006; the Planning Commission meeting of May 18, 2006; the Planning Commission staff report of June 1, 2006, the Planning Commission meeting of June I, 2006; the Planning Commission staff report of July 6, 2006, and the Planning Commission meeting of July 6, 2006: (a) The key environmental issue identified by City staff is traffic. Mitigation measures are proposed to reduce many of the identified impacts to a less than significant level. However, significant cumulative traffic impacts attributable to the development will occur in the year 2020 and cannot be feasibly mitigated. The project proponent has also revised the site plan to reduce some of the impacts and improve circulation. The plans now reflect the provision of a left-turn pocket on Dubuque Avenue providing better and safer site access. The applicant is also proposing to improve on-site circulation as suggested by the City's traffic consultant and is proposing to increase the amount of parking; both of these improvements are not considered impacts and do not require mitigation, but will help ease on-site congestion. 3 (b) A Statement of Overriding Considerations has been prepared for those significant impacts which are unavoidable. The Statement of Overriding Considerations concludes that significant and unavoidable impacts resulting from the development, specifically, traffic impacts, are outweighed by the benefits of the Home Depot development. Approval of the project will generate a new source of significant tax revenue for the City. The Home Depot store is estimated to generate gross sales upwards of $40 million per year, resulting in a revenue stream of approximately $400,000 per year to the City. The Project is expected to employ an estimated 150 to 175 full-time and part-time employees, primarily derived from local communities. The Project will provide retail sales of building supplies, lumber, hardware and associated items for construction, landscaping, and home improvement projects in the area. Additionally the project will provide rental tools and equipment to be leased for such projects. Finally, the Project is generally consistent with objectives and requirements ofthe City's General Plan and the Zoning Code. 2. Planned Unit Development. As required by the Planned Unit Development Procedures [SSFMC Chapter 20.84], the following findings are made in approval of a Planned Unit Development (PUD05-0003) allowing parking in a portion of the minimum required front setback, situated at 900 Dubuque A venue in the Planned Commercial Zoning District, subject to making the findings of approval and, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised June 28, 2006 prepared by Greenberg Farrow; the Home Depot Initial Study and Environmental Impact Report; Design Review Board meeting of March 15,2005; Design Review Board meeting of May 17,2005; Design Review Board minutes of March 15,2005; Design Review Board minutes of May 17,2005; Planning Commission staff report of May 18, 2006 and Planning Commission meeting of May 18,2006; the Planning Commission staff report of June 1, 2006; the Planning Commission meeting of June 1, 2006; the Planning Commission staff report of July 6, 2006, and the Planning Commission meeting of July 6, 2006: (a) The site is physically suitable for a home improvement center. The development is similar in style to existing adjacent buildings and shares a similar floor area ratio and will reinforce a commercial environment of sustained desirability and stability by matching the development quality and design. Conditions of approval require that the new building and site improvements conform to the City's development standards. (b) The proposed exception allowing a reduction in part of the front setback adjacent to the open at-grade parking lot is acceptable in that 4 the planned development will be of general benefit to the community by providing a service and diversity of products not otherwise available in the City or in anyone location. The exception will not unreasonably be detrimental to the health, safety, welfare, comfort or convenience of persons working vicinity of the property in that the development provides for improved access and circulation and is of a design that is a significant improvement over the existing building and site improvements and is a better fit with the existing nearby buildings. (c) The project complies with the provisions of the California Environmental Quality Act. An Environmental Impact Report was prepared and circulated for public comments. Mitigation measures are identified to reduce impacts to a level less than significant. A Statement of Overriding Concerns is proposed due to cumulative traffic impacts associated with the development. A Mitigation Monitoring Program is required to ensure that all mitigation measures are implemented. (d) The proposed development is consistent with the General Plan Land Use Element designation of the site as Business Commercial. The proposed project is consistent with the General Plan which designates the property Business Commercial and the East of 101 Area Plan. Retention of existing retail development is a key principle of the plan. Policy LU-4a supports development of retail use in areas designated "Planned Commercial". The proposed development's floor area ratio (FAR) of 0.38 is well below the maximum FAR of 0.5 allowed in the Business Commercial land use designation. ( e) The proposed retail development will not be adverse to the public health, safety or general welfare of the community, or unreasonably detrimental to surrounding properties or improvements. The development is designed to comply with the City's Design Guidelines and the architectural theme of the surrounding commercial developments. Conditions of approval are attached which will ensure that the development complies with local development standards and requirements. (f) The City's Design Review Board determined that the proposed building design and site improvements comply with the City's Design Guidelines and recommended approval of the proposed development. 3. Use Permit. As required by the "Use Permit Procedure" (SSFMC Chapter 20.81), the Planning Commission makes the following findings in support of the request to approve a Use Permit (UP05-0010) allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate, situated at 900 Dubuque 5 Avenue, in the Planned Commercial Zone District, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised June 28, 2006 prepared by Greenberg Farrow; the Home Depot Initial Study and Environmental Impact Report; Design Review Board meeting of March 15,2005; Design Review Board meeting of May 17,2005; Design Review Board minutes of March 15,2005; Design Review Board minutes of May 17,2005; Planning Commission staff report of May 18, 2006 and Planning Commission meeting of May 18, 2006; the Planning Commission staff report of June 1, 2006; the Planning Commission meeting of June 1, 2006; the Planning Commission staff report of July 6, 2006, and the Planning Commission meeting of July 6, 2006: (a) The proposed retail development allowing outdoor sales, outdoor storage, generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate not identified in the SSFMC will not be adverse to the public health, safety, or general welfare of the community, or unreasonably detrimental to surrounding properties or improvements. The site is physically suitable for the type and intensity of the land use being proposed, and the compatibility with adjacent developments was thoroughly analyzed in the Environmental Impact Report. Conditions of approval and mitigation measures are required to ensure protection of public safety, reduce traffic, reduce parking demand and ensure compliance with Federal, State and City development and environmental standards. (b) The proposed retail development allowing outdoor sales, outdoor storage, generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate not identified in the SSFMC is consistent with the General Plan which designates the property Business Commercial and the East of 101 Area Plan. Retention of existing retail development is a key principle of the plan. Policy LU-4a supports development of retail use in areas designated "Planned Commercial". The proposed development's floor area ratio (FAR) of 0.3 8 is well below the maximum FAR of 0.5 allowed in the Business Commercial land use designation. (c) The proposed retail development allowing outdoor sales, outdoor storage, generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate not identified in the SFMC meets or exceeds the minimum standards and requirements of the City's Zoning Ordinance which designates the site Planned Commercial. Retail use is allowed subject to an approved Use Permit. The proposed outdoor sales and storage is commonly associated with home improvement centers retail development. The number of parking spaces is adequate to serve the proposed retail use 6 based on parking data for similar home improvement centers, the Institute of Traffic Engineers data and that a TDM Plan will be required. Conditions of approval are required to ensure compliance with the City's development standards, reduce parking demand, provide security and ensure that the site is well maintained. (d) The proposed project is consistent with the goals and objectives ofthe Redevelopment Program for the Downtown/Central Redevelopment Project Area, and specifically with the following: 1. To create and develop local job opportunities and to preserve the area's existing employment base. 11. To replan, redesign and develop areas which are stagnant or improperly used. (e) An Environmental Impact Report has been prepared for the project in accordance with the provisions of CEQA. Mitigation measures are required which will reduce all identified impacts to a level less than significant. A Mitigation Monitoring Program is required to ensure that all mitigation measures are implemented. A Statement of Overriding Consideration is required because of cumulative traffic impacts associated with the development. 4. Type C Sign Permit. As required by the "Sign Permit Procedures" (SSFMC Chapter 20.86), the following findings are made in approval of a Type C Sign Permit (Signs05-0044) allowing a master sign program consisting of new building fa<;ade signs with a total sign area of 1,103 square feet, situated at 900 Dubuque A venue, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: sign plans revised June 28, 2006 prepared by Greenberg Farrow; the Home Depot Initial Study and Environmental Impact Report; Design Review Board meeting of March 15,2005; Design Review Board meeting of May 17,2005; Design Review Board minutes of March 15,2005; Design Review Board minutes of May 17, 2005; Planning Commission staff report of May 18,2006 and Planning Commission meeting of May 18, 2006; the Planning Commission staff report of June 1, 2006; the Planning Commission meeting of June 1, 2006; the Planning Commission staff report of July 6, 2006, and the Planning Commission meeting of July 6, 2006: (a) The master sign program consisting of building fa<;ade signs with a total sign area of 1,103 square feet, situated at 900 Dubuque Avenue is consistent with the City's General Plan Land Use Element, which designates this site for Business Commercial and the City Design Guidelines, which encourages master sign programs. 7 (b) The master sign program consisting of building fayade signs with a total sign area of 1,103 square feet, situated at 900 Dubuque A venue is consistent with the requirements ofSSFMC Chapters 20.76 and 20.86, which requires an approved Type C Sign Permit. The size, materials, colors, graphic style, illumination and other sign features are in keeping with the visual character of the area and are reflective of the building design and exterior finishes. The signs are of a straight forward design and are clear and readable. The City's Design Review Board recommended approval ofthe sign program at their meeting of May 17,2005. (c) The master sign program consisting of building fayade signs with a total sign area of 1,103 square feet, situated at 900 Dubuque Avenue will not be adverse to the public health, safety or general welfare of the community, nor detrimental to surrounding properties or improvements. The total sign area is needed due to the unique nature of the use and site and orientation to the regional traveler. 5. Transportation Demand Management Plan. As required by the Transportation Demand Management Procedures [SSFMC Section 20.120.070], the following findings are made in approval of the Preliminary Transportation Demand Management Plan, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised June 28, 2006 prepared by Greenberg Farrow; the Home Depot Initial Study and Environmental Impact Report; Design Review Board meeting of March 15,2005; Design Review Board meeting of May 17,2005; Design Review Board minutes of March 15,2005; Design Review Board minutes of May 17, 2005; Planning Commission staff report of May 18, 2006 and Planning Commission meeting of May 18, 2006; the Planning Commission staff report of June 1, 2006; the Planning Commission meeting of June 1, 2006; the Planning Commission staff report of July 6, 2006, and the Planning Commission meeting of July 6,2006: (a) The proposed Preliminary Transportation Demand Management Plan measures are feasible and appropriate for the retail development located at 900 Dubuque Avenue with up to 24 hour operation in the Planned Commercial Zone District adjacent to other commercial uses. (b) The proposed performance guarantees, consisting of an Annual and Triennial Reviews, will ensure that the target alternative mode use established for the project of28% based on a Floor Area Ratio of 0.38 [SSFMC 20.120.030 (C)] will be achieved and maintained. NOW, THEREFORE, BE IT FURTHER RESOLVED that the Planning Commission of the City of South San Francisco does hereby: 8 A. Recommend certification, in accordance with the California Environmental Quality Act, of the Final Environmental Impact Report and the following, assessing environmental impacts of the proposed development of a home improvement retail store: i. Findings Concerning Alternatives attached hereto as Exhibit A; ii. The Statement of Overriding Considerations attached hereto as Exhibit B' -, iii. The Mitigation Monitoring Program attached hereto as Exhibit C. B. Recommend approval of the Planned Unit Development allowing parking in a portion of the minimum required front setback, situated at 900 Dubuque Avenue in the Planned Commercial Zoning district. C. Recommend approval of the Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate, situated at 900 Dubuque Avenue, in the Planned Commercial Zone District. D. Recommend approval of Type C Sign Permit allowing a master sign program consisting of new building fayade signs with a total sign area of 1,103 square feet, situated at 900 Dubuque Avenue. E. Recommend approval of the Transportation Demand Management Plan concerning the Home Depot development to be situated at 900 Dubuque Avenue, in the Planned Commercial Zone District. I hereby certify that the foregoing resolution was adopted by the Planning Commission of the City of South San Francisco at the regular meeting held on the day of 2006, by the following vote: AYES: NOES: ABSTENTIONS: ABSENT: Attest: Susy Kalkin 9 Interim Secretary to the Planning Commission 10 Exhibit A Findings Concerning Alternatives CEQA requires that an EIR identify alternatives to a project as proposed. CEQA Guidelines section 15126.6, subdivision (a), specifies that the EIR consider alternatives that would feasibly attain most of the basic objectives ofthe project, but would avoid or substantially lessen many of the significant environmental effects of the project. "Feasible" means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors. The Home Depot EIR identified two alternatives: No Project and 0.50 Floor Area Ratio Alternative. The following findings are for both the No Project and 0.50 Floor Area Ratio Alternative as discussed in the EIR. The City Council hereby finds that the two alternatives identified and described in the EIR were considered and finds them to be infeasible for the specific economic, social, or other considerations set forth below pursuant to CEQA section 21081 ( c). No Proiect Alternative (EIR Page 13-1) Under the No Project Alternative the Project site would remain as it is today-an existing commercial building occupied by the Levitz Furniture Company, and used to warehouse and sell furniture. This Alternative would maintain the site's Planned Commercial General Plan use designation, but the retail use would not be as intense or economically beneficial to the City as it would be if the Project as proposed were implemented. The No Project Alternative is not consistent with the East of 101 Area Plan's policy towards increasing property tax revenues and generating new sources of sales tax revenue. Nor is it consistent with the Plan's policy of improving streetscape along Dubuque Avenue. The No Project Alternative would not result in the environmental impacts described in this EIR, particularly those identified as significant and unavoidable. There would be approximately 185 fewer AM Peak Hour trips and 350 fewer PM Peak Hour trips, resulting in lower air pollutant vehicle emissions and traffic levels of service. The No Project site would also not introduce several of the hazardous materials that would be stored and used on the site as part of the Project, and would preserve the seven protected trees that will otherwise need to be replaced. Finding: This alternative is found to be infeasible and rejected for the following reasons: 1. The City Council specifically finds that the No Project Alternative is rejected as an alternative because it would not achieve any of the Project's objectives. 2. Though this alternative would avoid most ofthe significant impacts of the Project, this alternative would not generate additional tax revenue. 3. The No Project Alternative is inconsistent with at least some of the policies of the East of 101 Area Plan. 11 0.50 Floor Area Ratio Alternative (EIR Page 13-2) The 0.50 Floor Area Ratio Alternative proposes reducing the square footage of the Home Depot store from 125,386 square feet to 63,897 square feet. Such a reduction would decrease the floor area ratio (FAR) from 0.38 to 0.19. The applicant has indicated that it would not be economically feasible for Home Depot to occupy such a small building, based on its standard store size and business model-the average Home Depot store is about 110,000 square feet. The reduced development intensity would produce fewer vehicle trips and less air pollutant emissions. Fewer vehicle trips would result in better freeway Levels of Service and better Levels of Service on street intersections near the Project site. It would not however, completely mitigate the significant impacts detailed in the Transportation and Circulation Chapter. The 0.50 Floor Area Ratio Alternative would still provide extensive landscaping on the site, and would also require a smaller amount of vehicle parking facilities. However, this Alternative would effectively prohibit the Applicant from occupying the site, and alternate retail uses- especially at half the proposed FAR-would not generate an equivalent economic benefit for the City. Finding: This alternative is found to be infeasible and rejected for the following reasons: 1. The City Council specifically finds that the 0.50 Floor Area Ratio Alternative is rejected as an alternative because it would not achieve most of the basic objectives of the Project. 2. As this alternative would prohibit the Applicant from occupying the site, the alternative would not satisfy the home improvement market needs in South San Francisco and the surrounding area. 3. This alternative would not successfully mitigate all of the significant impacts, but would greatly reduce the economic benefits to the City. 12 Exhibit B Statement of Overriding Considerations 13 Exhibit C Mitigation Monitoring Program 14 STATEMENT OF OVERRIDING CONSIDERATIONS 1. General. Pursuant to CEQA Guidelines section 15093, the City Council of the City of South San Francisco adopts a Statement of Overriding Considerations for those impacts identified in the Home Depot Project ("Project") EIR as significant and unavoidable. (Resolution .) The City Council carefully considered each impact in its decision to approve development of the Home Depot Project. The City Council is currently considering the Home Depot Project and accompanying EIR. The Project proposes demolition ofthe Levitz Furniture building and the construction of a 101,171 square foot Home Depot home improvement warehouse, an adjoining 24,215 square foot Garden Center, and a two-level parking structure providing 462 parking spaces on a 7.62 acre parcel. The City prepared an EIR for the Home Depot Project which identified environmental impacts that were determined to be less than significant or could be mitigated to a less than significant level. The EIR also identified some significant traffic-related impacts that could not be mitigated or avoided. The proposed development is for construction of a Home Depot store for retail sales of building supplies, lumber, hardware and associated items, such as appliances, barbeques, pool accessories, home furnishings, patio furniture, and other home improvement and maintenance materials. The Project will also provide rental tools and equipment to be leased for construction, landscaping, and home improvement projects. Approximately 150 to 175 full-time and part-time employees will be hired to staffthe store. These employees will come from the City of South San Francisco and surrounding communities. The City Council adopts this Statement of Overriding Considerations for development approvals for the Home Depot Project. Pursuant to a 2002 court decision, the City Council must adopt overriding considerations for the impacts that apply to the Home Depot Project, 1 which are identified in the Home Depot Project EIR as significant and unavoidable. The City Council believes that many of the unavoidable environmental effects in the Home Depot Project EIR will be substantially lessened to a less than significant level by the proposed mitigation measures and by the environmental protection measures to be adopted through the Home Depot Project approvals. Even with mitigation, however, the City Council recognizes that the implementation of the project carries with it unavoidable adverse effects as identified in the Home Depot Project EIR. The City Council specifically finds that to the extent that the identified adverse or potentially adverse impacts for the project have not been mitigated to acceptable levels, there are specific economic, social, environmental, land use, and other considerations that support approval of the project. 2. Unavoidable Significant Adverse Impacts. The following unavoidable significant impacts have been identified in the Home Depot Project EIR. 1 "[P]ublic officials must still go on the record and explain specifically why they are approving the later project despite its significant unavoidable impacts." Communities for a Better Environment v. Cal. Resources Aqency (2002) 103 Cal.AppAth 98, 125. 829135-1 Impact 11.2 - Year 2006 Intersection Level of Service Impacts. While nearly all intersections analyzed would maintain acceptable operation during AM and PM peak hour conditions, the Oyster Point Boulevard/Dubuque AvenuelU.S. 101 Northbound on- ramp intersection would experience significant increase in traffic volume. Level of Service (LOS) grades for this intersection would drop from an E to an F, and volume would increase by 4.3%.2 There are no feasible physical improvements that the City could undertake at this intersection to improve operation to Base Case Conditions or better. Impact 11.5 - Year 2006 Vehicle Queuing Impacts 50th Percentile Queue. The Dubuque Avenue northbound approach left turn/through lanes would receive more than a two percent increase in traffic (19.5%), with significant Base Case queuing in the left turn lane. Acceptable Base Case queuing in the combined left/through lane would also be increased beyond the available storage with the addition of Project traffic. There are no feasible physical improvements that the City could undertake at this intersection to reduce queuing to Base Case Conditions or better. 95th Percentile Queue. The Dubuque Avenue northbound approach left turn lane would receive more than a two percent increase in traffic (9.6%) with unacceptable Base Case queuing during the AM peak hour. During the PM peak hour, the Dubuque Avenue northbound approach left turn lane and through/left turn lanes would receive more than a two percent increase in traffic (19.5%) with unacceptable Base Case queuing in both lanes. There are no feasible physical improvements that the City could undertake at this intersection to reduce queuing to Base Case Conditions or better. Impact 11.6 - Year 2020 Intersection Level of Service Impacts. During the PM peak hour volume at the Oyster Point Boulevard/Dubuque AvenuelU.S. 101 Northbound on- ramp would increase by more than two percent (2.1 %), resulting in a significant impact at this intersection. There are no feasible physical improvements that the City could undertake at this intersection to reduce the impact to Base Case Conditions or better. Impact 11.9 - Year 2020 Vehicle Queuing Impacts 50th Percentile Queue; AM Peak Hour. The Dubuque Avenue northbound approach left turn lane would receive an increase in traffic with unacceptable Base Case queuing during the AM peak hour. There are no feasible physical improvements that the City could undertake to reduce queuing to an acceptable level during the AM peak hour at the Dubuque Avenue northbound approach left turn lane. 50th Percentile Queue; PM Peak Hour. During the PM peak hour, the Oyster Point Boulevard westbound approach through lanes and left turn lane would receive a significant increase in traffic with unacceptable Base Case queuing. The Dubuque Avenue northbound approach left turn/through lanes will also experience significant increase in traffic with unacceptable Base Case queuing. Mitigation Measure 11-9A will 2 An increase in volume of greater than two percent was considered "significant" for purposes of the EIR. 829135-1 not reduce queuing to an acceptable level during the PM peak hour at Oyster Point Boulevard or Dubuque A venue lanes. 95th Percentile Queue; AM Peak Hour. The Dubuque Avenue northbound approach left turn lane and combined through/left turn lanes will experience a 7.2% increase in traffic with unacceptable Base Case queuing. Additionally, the Bayshore Boulevard southbound approach left turn lane will experience a 4.1 % increase in traffic with unacceptable Base Case queuing. The Oyster Point Boulevard westbound approach left turn lane will have a demand increased beyond the available storage with the addition of project traffic. There are no feasible physical improvements that the City could undertake at the Dubuque A venue northbound approach to reduce the impact to Base Case Conditions or better. Mitigation 11-9B will not reduce queuing on Bayshore Boulevard or alleviate the storage problem on Oyster Point Boulevard to acceptable levels. 95th Percentile Queue; PM Peak Hour. The Oyster Point Boulevard westbound approach through lanes will receive a 4% increase in traffic with unacceptable Base Case queuing. The Oyster Point Boulevard westbound approach left turn lane will receive a 4.1 % impact in traffic with unacceptable Base Case queuing. The Bayshore Boulevard southbound approach left turn lane will experience a 8.1 % increase in traffic with unacceptable Base Case queuing. The Dubuque Avenue northbound approach left turn and combined through/left turn lanes will receive a 6.2 increase in traffic with unacceptable Base Case queuing. Mitigation Measure 11-9B will not reduce queuing on Oyster Point Boulevard westbound approaches to an acceptable level. Nor will the Measure reduce queuing at the Bayshore Boulevard southbound approach to an acceptable level. There are no feasible physical improvements that the City could undertake at the Dubuque A venue northbound approach to reduce the impact to Base Case Conditions or better. 3. Overriding Considerations. The City Council now balances the unavoidable impacts that apply to future development of the Home Depot Project, against it benefits, and hereby determines that such unavoidable impacts are outweighed by the benefits of the Home Depot Project as further set forth below. The Project will generate a new source of significant tax revenue for the City. The Home Depot store is estimated to generate gross sales upwards of $40 million per year, resulting in a revenue stream of approximately $400,000 per year to the City. The Project is expected to employ an estimated 150 to 175 full-time and part-time employees, primarily derived from local communities. The Project will provide retail sales of building supplies, lumber, hardware and associated items for construction, landscaping, and home improvement projects in the area. Additionally the project will provide rental tools and equipment to be leased for such projects. 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CONDITIONS OF APPROVAL 900 DUBUQUE AVENUE P05-0035 HOME DEPOT (As recommended by City Staff on July 6, 2006) A. PLANNING DIVISION: 1. The applicant shall comply with the City's Standard Conditions and with all the requirements of all affected City Divisions and Departments as contained in the attached conditions, except as amended by the conditions of approval. 2. The construction drawings shall substantially comply with the City Council approved plans, as amended by the conditions of approval including the revised plans prepared by Greenberg Farrow dated June 28, 2006 submitted in association with P05-0035. 3. Prior to the issuance of the Building Permit, the landscape plan shall be revised to incorporate the Design Review Board suggestions made at their meeting of May 2005 and shall also include mature shrubs, trees that have a minimum size of 24 inch box with a minimum trunk diameter of between 1.5 to 2.5 inches and 15% of the total number of proposed trees shall have a minimum size of 36 inch box with a minimum trunk diameter of at least 2.5 inches. The landscape plans shall also include landscaping of the garage roof deck to soften views from the intersection of Dubuque Avenue and Oyster Point Boulevard. The garage deck landscaping shall include trellises with vining material. The landscape plan shall be subject to the review and approval by the City's Chief Planner. 4. Prior to opening the business the owner shall obtain a City Business License. 5. Prior to the final inspection the applicant shall have a Final Transportation Demand Management Program (TDM) prepared by a qualified and licensed traffic engineer that incorporates the provisions of the City of South San Francisco SSFMC 20.120 Transportation Demand Management. The Final TDM Plan shall closely follow the PTDM Plan approved by the City Council in association with P05-0035 and shall be subject to the review and approval by the City's Chief Planner. The Final TDM shall also be subject to the review and approval by the San Mateo City/County Association of Governments. 6. Prior to the Final Inspection, the owner shall establish a program to maintain the site free oflitter and debris. The plan shall be subject to the review and approval of the City's Chief Planner. 7. Prior to the Final Inspection, the owner shall establish a program to for outdoor displays and sales. The plan shall be subject to the review and approval of the City's Chief Planner. 8. In accordance with the California Environmental Quality Act, the owner shall comply with all mitigation measures identified in the Environmental Impact Report certified by the City Council of the City of South San Francisco. Prior to the issuance of any permit, the owner shall establish a Mitigation Monitoring Program implementing all the mitigation measures. The Mitigation Monitoring Program shall be subject to the review and approval by the City's Chief Planner. (Planning Division Contact: Steve Carlson 650/877-8353, Fax 650/829-6639) B. ENGINEERING DIVISION: I. STANDARD CONDITIONS The developer shall comply with the conditions of approval for commercial projects, as detailed in the Engineering Division's "Standard Conditions for Commercial and Industrial Developments", contained in our "Standard Development Conditions" booklet, dated January 1998. This booklet is available at no cost to the applicant from the Engineering Division. II. SPECIAL CONDITIONS The developer shall comply with the on- and off-site traffic, sewer, drainage and other infrastructure mitigation recommendations contained in the approved environmental mitigated negative declaration document for the project. The approved mitigation improvements shall be designed, furnished, constructed and installed by the applicant's consultants and contractors, in accordance with plans prepared by the applicant's consultant and approved by the City Engineer. The work shall be constructed to City Standards, pursuant to a secured encroachment permit, or off-site development improvement agreement, obtained prior to receiving a building permit for the subject project. The cost of all work and permits to mitigate the infrastructure impacts of the subject project shall be borne by the applicant and shall be performed at no cost to the City of South San Francisco. A. The design of the project shall include settlement and retention ponds and other approved devices, such as grassy swales, that will filter pollutants from the site's storm water runoff, in compliance with the City's and County's storm water discharge permit requirements. B. Provide a sight line study at each exit so there is adequate stopping sight distance. Revise the northwest property line to include a horizontal curve to improve the Dubuque A venue roadway based on the results of the sight line study. The Developer shall pay for costs relating to the design and construction of the improvements. The Developer shall also install city standard driveways at each exit. C. The applicant shall submit on-site pavement construction, pavement repair, and curb repair, striping, signing, and traffic control plans for the interior parking lot(s) and driveway isles within the site that will be used by Home Depot employees and guests. R1 "STOP" signs shall be installed at each exit that will be used by the guests when leaving the site. Traffic control signs shall be mounted on 2" diameter, galvanized steel poles. D. Upon completion of the building alterations and site improvements, the applicant shall clean, repair or reconstruct, the existing curb, gutter and driveway approaches, along the entire frontage of the subject parcel, as may be required by the City's Construction Manager, to conform to current City public improvement safety and drainage standards, prior to receiving a "final", or occupancy permit, for the subject project. E. Prior to the issuance of a Building Permit for the project, the applicant shall pay the various fees detailed below. III. ON-SITE IMPROVEMENTS A. The applicants shall design, construct and install a drainage system capable of accommodating a 10-year design storm, within the portions of the site that will be used by the health club for required parking and vehicle or pedestrian access to or from the facility. Any existing drainage facilities that are proposed to be re-used shall be inspected by a competent consultant and cleaned, repaired, or improved by the applicant's contractor, in order to conform to City Engineering Division site drainage standards. Storm drain pipes, shall not connect to each other at a "blind" connection. All storm drains shall begin and end at a manhole, catch basin, inlet, or junction box, in order to provide access for maintenance. B. A report shall be prepared by the applicant's drainage consultant and submitted to the City Engineer for review and approval. The report shall describe the condition and adequacy of any existing storm drainage facilities that will be re-used and shall justify the design of all proposed new improvements to the site's drainage system. The applicant shall design and install the drainage improvements described in the approved report, to the satisfaction of the City's Engineering Construction Manager. C. New storm water pollution control devices and filters shall be installed within the existing and new site drainage facilities located within the areas subject to travel by the guests, as required to prevent pollutants deposited on the impervious surfaces within the site from entering the public storm drains. Plans for these facilities shall be prepared by the applicant's consultant and submitted to the Engineering Division and to the City's Environmental Compliance Coordinator, for review and approval. V. OYSTER POINT OVERPASS CONTRIBUTION FEE The applicant shall pay the Oyster Point Overpass fee for the proposed building, prior to receiving a building permit, in accordance with the Standard Conditions referenced above. The subject proposal for a 101,171 SF Home Depot store and 24,215 SF Garden Center with a 2- story parking structure would result in a fee of $0, which was calculated as follows: Existing Retail: 149,356 sq. ft x 48 tripsll,OOO sq. ft. = 7,169.09 trips Proposed Retail: (101,171 + 24,215) sq. ft. @ 48 trips/lOOO sq. ft. = 6,018.53 trips Total new trips: 6,018.53 (new trips) -7,169.09 (existing trips) = 0 net new trips Fee: o trips x $154 x [8260.41/6552.16 (Engr. Construction Index)] = $0 VI. EAST OF 101 TRAFFIC IMPACT FEES Prior to issuance of a Building Permit for any building within the proposed project, the applicant shall pay the East 101 Traffic Impact fee, in accordance with the resolution adopted by the City Council at their meeting of September 26,2001, or as the fee may be amended in the future. Fee Calculation (as ofMav 2005) (101,171 + 24,215 SF) gsf @ $6.25 per each square foot = $783,662.50 (Please note that the traffic impact fee is proposed to be increased. If the applicant has not obtained a building permit and begun construction prior to the date on which the fee is increased, the applicant will be required to pay the revised fee.) VII. SEWER SYSTEM CAPACITY STUDY AND IMPROVEMENT FEE The City of South San Francisco has identified the need to investigate the condition and capacity of the sewer system within the East of 101 area, downstream of the proposed office/R&D development. The existing sewer collection system was originally designed many years ago to accommodate warehouse and industrial use and is now proposed to accommodate uses, such as offices and biotech facilities, with a much greater sewage flow. These additional flows, plus groundwater infiltration into the existing sewers, due to ground settlement and the age of the system, have resulted in pumping and collection capacity constraints downstream ofthe subject site. In order to fund these improvements the City Council has adopted a fee on October 22, 2002, which applies to all new development within the area East of 101. The applicant shall pay the East of 101 Sewer Facility Development Impact Fee, as adopted by the City Council at their meeting of October 22, 2002. The adopted fee is $3.19 per gallon of discharge per day. The Carollo Study, which forms the basis for the system upgrades, calculated Office/R&D uses to require a capacity of 400 gallons per day per 1000 square feet of development. Based upon this calculation, the potential fee would be, if paid this year (the fee is subject to an inflation factor, as determined by the Engineering News Record San Francisco Construction Cost Index): 0.4 gallons per square foot (400 gpd/1000 sq. ft.) x $3.19 per gallon x (101,171 + 24,215) sq. ft. = $159,992.54. The sewer contribution shall be due and payable prior to receiving a building permit for each phase of the development. (Engineering Division Contact: Michelle Bocalan 650/829-6652) C. POLICE DEPARTMENT 1. Municipal Code Compliance The applicant shall comply with the provisions of Chapter 15.48 of the Municipal Code, "Minimum Building Security Standards" Ordinance revised May 1995. The Police Department reserves the right to make additional security and safety conditions, if necessary, upon receipt of detailed/revised building plans. 2. Building Security a. Doors 1. The jamb on all aluminum frame-swinging doors shall be so constructed or protected to withstand 1600 lbs. of pressure in both a vertical distance of three (3) inches and a horizontal distance of one (1) inch each side of the strike. 2. Glass doors shall be secured with a deadbolt lock! with minimum throw of one (1) inch. The outside ring should be free moving and case hardened. 3. Employee/pedestrian doors shall be of solid core wood or hollow sheet metal with a minimum thickness of 1-3/4 inches and shall be secured by a deadbolt lock! with minimum throw of one (1) inch. Locking hardware shall be installed so that both deadbolt and deadlocking latch can be retracted by a single action of the inside knob, handle, or turn piece. 4. Outside hinges on all exterior doors shall be provided with non-removable pins when pin-type hinges are used or shall be provided with hinge studs, to prevent removal of the door. 5. Doors with glass panels and doors with glass panels adjacent to the doorframe shall be secured with burglary- resistant glazing2 or the equivalent, if double-cylinder deadbolt locks are not installed. 6. Doors with panic bars will have vertical rod panic hardware with top and bottom latch bolts. No secondary locks should 1 The locks shall be so constructed that both the deadbolt and deadlocking latch can be retracted by a single action of the inside door knob/lever/tumpiece. A double-cylinder deadbolt lock or a single-cylinder deadbolt lock without a tumpiece may be used in "Group B" occupancies as defIned by the Uniform Building Code. When used, there must be a readily visible durable sign on or adjacent to the door stating "This door to remain unlocked during business hours", employing letters not less than one inch high on a contrasting background. The locking device must be of type that will be readily distinguishable as locked, and its use may be revoked by the Building OffIcial for due cause. 25/16" security laminate, V4" polycarbonate, or approved security film treatment, minimum. be installed on panic-equipped doors, and no exterior surface-mounted hardware should be used. A 2" wide and 6" long steel astragal shall be installed on the door exterior to protect the latch. No surface-mounted exterior hardware need be used on panic-equipped doors. 7. On pairs of doors, the active leaf shall be secured with the type oflock required for single doors in this section. The inactive leaf shall be equipped with automatic flush extension bolts protected by hardened material with a minimum throw of three-fourths inch at head and foot and shall have no doorknob or surface-mounted hardware. Multiple point locks, cylinder activated from the active leaf and satisfying the requirements, may be used instead of flush bolts. 8. Any single or pair of doors requiring locking at the bottom or top rail shall have locks with a minimum of one throw bolt at both the top and bottom rails. b. Windows 1. Louvered windows shall not be used as they pose a significant security problem. 2. Accessible rear and side windows not viewable from the street shall consist of rated burglary resistant glazing or its equivalent. Such windows that are capable of being opened shall be secured on the inside with a locking device capable of withstanding a force of two hundred- (200) lbs. applied in any direction. 3. Secondary locking devices are recommended on all accessible windows that open. c. Roof Openings 1. All glass skylights on the roof of any building shall be provided with: a) Rated burglary-resistant glass or glass-like acrylic . 12 matena . or: b) Iron bars of at least 1/2" round or one by one-fourth inch flat steel material spaced no more than five inches apart under the skylight and securely fastened. or: c) A steel grill of at least 1/8" material or two inch mesh under skylight and securely fastened. 2. All hatchway openings on the roof of any building shall be secured as follows: a) If the hatchway is of wooden material, it shall be covered on the outside with at least 16 gauge sheet steel or its equivalent attached with screws. b) The hatchway shall be secured from the inside with a slide bar or slide bolts. The use of crossbar or padlock must be approved by the Fire Marshal. c) Outside hinges on all hatchway openings shall be provided with non-removable pins when using pin-type hinges. 3. All air duct or air vent openings exceeding 8" x 12" on the roof or exterior walls of any building shall be secured by covering the same with either of the following: a) Iron bars of at least 1/2" round or one by one-fourth inch flat steel material, spaced no more than five inches apart and securely fastened. or: b) A steel grill of at least 1/8" material or two inch mesh and securely fastened and c) If the barrier is on the outside, it shall be secured with galvanized rounded head flush bolts of at least 3/8" diameter on the outside. d. Lighting 1. All exterior doors shall be provided with their own light source and shall be adequately illuminated at all hours to make clearly visible the presence of any person on or about the premises and provide adequate illumination for persons exiting the building. 2. The premises, while closed for business after dark, must be sufficiently lighted by use of interior night-lights. 3. Exterior door, perimeter, parking area, and canopy lights shall be controlled by photocell and shall be left on during hours of darkness or diminished lighting. e. Numbering of Buildings 1. The address number of every commercial building shall be illuminated during the hours of darkness so that it shall be easily visible from the street. The numerals in these numbers shall be no less than four to six inches in height and of a color contrasting with the background. 2. In addition, any business, which affords vehicular access to the rear through any driveway, alleyway, or parking lot, shall also display the same numbers on the rear of the building. f. Alarms 1. The business shall be equipped with at least a central station silent intrusion alarm system. NOTE: To avoid delays in occupancy, alarm installation steps should be taken well in advance of the final inspection. g. Traffic, Parking, and Site Plan 1. Handicapped parking spaces shall be clearly marked and properly sign posted. NOTE: For additional details, contact the Traffic Bureau Sergeant at (650) 829-3934. h. Misc. Security Measures 1. Commercial establishments having one hundred dollars or more in cash on the premises after closing hours shall lock such money in an approved type money safe with a minimum rating ofTL-15. 2. Fencing should be of an open design, such as decorative wrought iron, to preclude scaling, and maximize both natural surveillance and territorial reinforcement. NOTE: Proposed height exceeding 6 feet will require a variance, which upon design approval, is encouraged to minimize inventory shrinkage. Gates to proposed fencing should be alarmed, also. (Police Department Contact: Sgt. E. Alan Normandy 650/877-8927) D. FIRE PREVENTION: 1. Install fire sprinkler system per NFP A 13/SSFFD requirements under separate fire plan check and permit for overhead and underground. 2. Fire sprinkler system shall be central station monitored per California Fire Code section 1003.3. 3. Install exterior listed horn/strobe alarm device. 4. Provide class III combination standpipe-sprinkler system conforming to NFP A 13/SSFD requirements. Standpipe connections to be located on first and second story of parking structure. Additional connections to be provided inside building, location to be determined on submission of rack storage plans. 5. A manual fire alarm system shall be provided that will alarm both audibly/visually throughout the building if activated and also alert the Fire Department via an approved monitoring station. Install fire alarm panel at front and rear, location to be determined. 6. Elevator if provided shall not contain shunt-trips. 7. Minimum height clearance under parking structure (13.5 feet) CFC 2001. Provide 20 foot wide clear emergency vehicle access road. Indicate as fire lane with no parking allowed. 8. Access road shall have all weather driving capabilities and support the imposed load of 68,000 pounds. 9. Road gradient shall not exceed maximum allowed by engineering department. 10. Provide fire flow in accordance with California Fire Code Appendix III-A. 11. Provide portable thermal imager to mitigate search and rescue of occupants from high occupant load warehouse structure. 12. Provide fire hydrants; location and number to be determined. 13. All buildings shall provide premise identification in accordance with SSF municipal code section 15.24.100. 14. Provide Knox key box for each building with access keys to entry doors, electrical/mechanical rooms, elevators, and others to be determined. 15. Smoke Control design/criteria to be approved by Fire Marshal. 16. Provide emergency illumination. 17. Provide exit signs. 18. Project must meet all applicable Local (SSF Municipal Code, Chapter 15.24 Fire Code), State and Federal codes. (Fire Prevention Contact: Bryan Niswonger 650/829-6645) E. WATER QUALITY CONTROL PLANT 1. A plan showing the location of all storm drains and sanitary sewers must be submitted. 2. The onsite catch basins are to be stenciled with the approved San Mateo Countywide Stormwater Logo. 3. Storm water pollution preventions devices are to be installed. A combination of landscape based controls (e.g., vegetated swales, bioretention areas, planter/tree boxes, and ponds) and manufactured controls (vault based separators, vault based media filters, and other removal devices) are preferred. Existing catch basins are to be retrofitted with filter type catch basin inserts or equivalent. These devices must be shown on the plans prior to the issuance of a permit. CDS or Stormceptor units alone are not acceptable. These units must be used in series with an additional treatment measure. 4. The applicant must submit a signed maintenance schedule for the stormwater pollution prevention devices installed. 5. Any trash handling area must be covered, enclosed and must drain to sanitary sewer. This must be shown on the plans prior to issuance of a permit. 6. Plans must show the connection ofthe wash area to the sanitary sewer. 7. Plans must show the location of all drains in the maintenance area. These drains must be connected to a three-compartment oil/water separator and the sanitary sewer. 8. Must demonstrate how the storm drains will be protected during construction. (Water Quality Contact: Cassie Prudhel 650/829-3840) MINUTES CITY COUNCIL CITY OF SOUTH SAN FRANCISCO SPECIAL JOINT MEETING CITY COUNCIL - PLANNING COMMISSION WEDNESDAY, OCTOBER 5, 2005 MUNICIPAL SERVICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE 1. Call to Order 6:07 p.m. (Cassette Tape No.1) 2. Roll Call Present: Councilmembers Garbarino, Gonzalez and Matsumoto, Mayor Pro Tern Fernekes and Mayor Green Planning Commissioners Giusti, Honan, Prouty*, Romero, and Sim*, Vice Chair Zemke* and Chair Teglia *Commissioners Prouty and Sim arrived at 6:09 pm and Vice Chair Zemke arrived at 7:08 pm Absent: None Staff: City Manager Nagel, City Attorney Mattas, Assistant City Manager Van Duyn, and Senior Planner Steve Carlson 3. Public Comments Ms. Kamala Silva Wolfe, resident, submitted a list of items that she would like to see addressed in the EIR being prepared by Lamphier & Gregory. City Manager Nagel stated a written response will be prepared. 4. Study Session: Joint meeting with the Planning Commission - discussion of the following projects: a) Lowe's Home Improvement Center, 600-790 Dubuque Avenue Staff report presented by Senior Planner Steve Carlson. Messrs. Roger Bernstein and Anthony Farmand, representatives of Lowe's Home Improvement Center, gave an overview of the project. Mayor Green asked for comments from the Planning Commission, then City Council. Commissioner Prouty stated his preference for a parking structure and felt it was more efficient. Commissioner Honan recently observed several eyesores at the San Bruno store and suggested that empty pallets, dismantled appliances, broken shopping carts, and surplus store supplies be enclosed or kept indoor's. Chair Teglia expressed concerns regarding the store configuration on the site and that it be re-orientated. He suggested the Dubuque Avenue area be visually enhanced. Councilman Gonzalez suggested the rear of building, facing the railroad tracks, be visually enhanced, materials from the demolition of existing buildings be recycled and the back area be monitored for graffiti. Mayor Pro Tem Fernekes asked for clarification on where customers will be drawn from and Mr. Bernstein responded that the store would be a regional draw, hopefully from San Francisco and off 101 from the south. Councilwoman Matsumoto stated a preference for a parking structure, but has concerns regarding safety. She asked for statistical information regarding a structure versus an open parking lot. She asked if a "local employee preference" can be made a condition and City Attorney Mattas stated he will look into it. Councilwoman Matsumoto stated concerns regarding the landscape tree species and container size and questioned the anticipated traffic flow on weekends. Councilman Garbarino questioned the signage, delivery hours, and stated support for the local preferential hiring concept. Mayor Green questioned the close proximity of the Home Depot and Lowe's stores and success ratio. Mr. Bernstein stated the positives; including more selection, store competition and that ultimately the consumer wins. Councilmembers Garbarino and Matsumoto questioned the location of the employee parking area and suggested it be monitored for compliance. Councilman Gonzalez discussed the potential need for an employee childcare program and Lowe's willingness to make a childcare contribution. Mr. Bernstein stated he will look into the matter and will get back to Council. Commissioner Prouty suggested that personal trucks be parked off-street. Commissioner Sim asked for a context drawing of the street "designed-out" and stated the Commission is looking for a high quality look. Chair Teglia asked for a picture of what Lowe's most expensive store looks like. SPECIAL CITY COUNCIL MEETING MINUTES OCTOBER 5, 2005 PAGE 2 (Recess: 7:01 pm-7:12 pm) 3. Public Comments (continued) Mr. Nick Tentes, resident, questioned the zoning of the area and asked if Lowe's and Home Depot approached the City or did the City approach Lowe's and Home Depot. City Manager Nagel confIrmed that the two businesses approached the City. Senior Planner Carlson stated the general plan designation for Dubuque Avenue is retail, not R&D. 4. b) Home Depot, 900 Dubuque Avenue Staff report presented by Senior Planner Carlson. Mr. Jeff Nance and Ms. Beverly Metz-Robbins gave a visual overview of the proj ect. Commissioner Honan discussed the impact of the quarterly outdoor sales on the parking area, and the anticipated truck delivery schedule. Commissioner Romero commented on the poorly designed parking structure at the Colma store and suggested the landscaping on the entire site be enhanced. Vice-Chair Zemke asked that the elevator be maintained and kept operational. Chair Teglia suggested other creative ways be look at for orientating the building. He asked for a picture of what Home Depot's most expensive store looks like. Commissioner Giusti stated concerns regarding the parking of vehicles along the side of the building where shopping carts need to maneuver and that this has been a problem at the Colma store. Commissioner Prouty asked that substantial trees be planted and maintained. Councilman Garbarino suggested landscaping be added to the top level of the parking structure. Councilwoman Matsumoto asked that preferential hiring practices be included in the project, that the applicant work with staff on this matter, and that a landscape maintenance agreement also be included. Councilman Gonzalez asked that the feasibility of a bridge linking the second level of the parking structure to the store be looked into and that landscaping be added to this level. He asked that a graffiti program be maintained. In response to Mayor Pro Tern Fernekes' question regarding the potential customers, Ms. Metz-Robbins stated that the targeted customers will be drawn from Burlingame to San Francisco. Mayor Pro Tern Fernekes described Colma's parking SPECIAL CITY COUNCIL MEETING MINUTES OCTOBER 5, 2005 PAGE 3 structure's poorly designed driveways and Senior Planner Carlson confirmed that the structure will not be similar. Chair Teglia suggested the parking spaces be slanted or diagonal. Commissioner Honan stated there were one too many signs for the site. In response to Commissioner Prouty's concern regarding graffiti, Ms. Metz- Robbins stated graffiti is aggressively monitored at their stores. Commissioner Sim suggested several plant species be considered to trellis the parking structure, such as bougainvillea, more vertical landscaping, and to avoid institutional light fixtures. Councilman Gonzalez suggested a sign be put at the rear of the store. Commission Sim suggested the parapet wall be dimensional rather than flat. (Recess: 8:05 p.m. - 8:16 p.m.) c) Discussion of Terrabay Phase III; Myers Development Mr. Jack Myers, Myers Development, Mr. Norman Garden, RTKL, and other development team members gave a visual overview of the proposal. Mayor Pro Tern Fernekes and Councilwoman Matsumoto (Terrabay III subcommittee members) asked for feedback from the Commission and Council members. Chair Teglia commented on the original concept for developing the site, including hotel and retail businesses, not residential. He stated concerns regarding the failure to rehabilitate the "Point". He stated major issues to be looked at during the public hearing process would include a massive development, maintaining a view up the mountain, location of high-rises, and the residential element. Commissioner Romero asked for documentation on how the number of below market rate units was calculated. He stated concerns regarding the Point area and that it is not looking as good as he would like. He stated that he favored a hotel as part of the mixed use, residential second, and an office tower as the third preference. He stated that the height of the buildings was not what was envisioned. (Cassette Tape No.2) Chair Teglia reiterate concerns regarding the concept to reduce the development's footprint by building-up, and promises that were made to stay off the Point. He stated he is not averse to adding residential, but concerned that the project is looking massive for the area. SPECIAL CITY COUNCIL MEETING MINUTES OCTOBER 5, 2005 PAGE 4 Commissioner Prouty stated concerns regarding the orientation of the buildings and commented that the proposal looks front-loaded. He suggested a hotel/condo use be considered. Commissioner Sim stated his opposition to proposing another tower and that it would have to be designed differently and not isolated. The discussion continued with Commissioners Sim, Romero and Giusti, and Chair Teglia voicing their concerns regarding the configuration of the proposed site plan, connecting the residential tower with the mixed-use development by adding trails and pedestrian walkways, and overall agreeing the current proposal will not work. Mayor Pro Tern Fernekes stated the subcommittee (Fernekes/Matsumoto) and staff members met last week with Mr. Myers and that the subcommittee expressed many of the same concerns. Councilman Gonzalez stated dissatisfaction with building more high-rises and suggested the height be reduced so that the mountain can remain visible in that area. Councilman Garbarino suggested the orientation of the proposed tower be adjacent to the townhouse area. Mr. Myers agreed to look at it again. 5. Adjournment Being no further business, Mayor Green adjourned the meeting at 9:02 p.m. Submitted by: Approved: /s/ Sylvia M. Payne, City Clerk City of South San Francisco /s/ Raymond L. Green, Mayor City of South San Francisco SPECIAL CITY COUNCIL MEETING MINUTES OCTOBER 5,2005 PAGE 5 Planning Commission Meeting of June 1, 2006 -. ~' ',. . ~ i: " . 10' ,.-<0 . ........ . .....c . .c.". ... . .. .. .. ',. ,."., .. ~ ...... .' Commissioner Prouty asked that there be a note in the file stating that it cannot be used as a second unit. Acting Chief Planner Kalkin noted second units require approval but this is not an application for a second unit. Approved by unanimous voice vote. PUBLIC HEARINGS 6. Home Depot/applicant Levitz SL San Francisc%wner 900 Dubuque Ave. P05-0035: PUD05-0003, UP05-0010, TDMO-0003, SIGNS05-0044, EIR05-0003 & DR05-0020 (Continued from May 18,2006) Environmental Impact Report assessing environmental impacts, Planned Unit Development allowing a reduced front setback; Use Permit allowing outside storage and display, Design Review allowing construction of a 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at- grade parking and a 2 level parking structure and generating in excess of 100 daily vehicle trips; Type C Sign Program comprised of building facade signs and retention of an existing pole sign with a total area exceeding 300 square feet; Transportation Demand Management Plan reducing traffic effects, situated at 900 Dubuque Avenue in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20,24, 20.81 & 20.85 Public Hearing opened. Recess called at 7:39 p.m. Recalled to order at 7:43 p.m. Senior Planner Carlson presented the staff report. Vice Chairperson Honan asked staff to review some of the issues at the May 15th meeting, being that she was absent. Senior Planner Carlson noted that some of the Commission's comments were: . Traffic, queuing with the left turn pocket into the site . Traffic backing out to US Highway 101 . Alternative access through the JPB site Commissioner Teglia added that they also asked for better aesthetics and rooftop parking. Senior Planner Carlson noted that the pictures presented by Commissioner Romero encouraged the applicant to revise the plans. Greg George, Home Depot, noted that the architect has revised the plans. He pointed out that they looked into rooftop parking extensively and found that it doubles the cost of the building. He stated that he is unable to provide rooftop parking. Frank Coda, Architect, gave a PowerPoint presentation and addressed some of the changes made to the proposal. The changes were - . Added a second lane into the parking lot, one is dedicated for the first level and the other allows the driver to continue straight this addressed the queuing concerns. . They added a significant tower element to show the entry to the site. . They upgraded the parking deck with vertical elements and freestanding trellises on the exterior . The architect eliminated the orange color, with the exception of the corporate logo. . The fence is not a chain link fence but wrought iron fence. . Decorative lighting elements were added to the garden center and on the parking structure which was carried all around the deck. S:\M,,,,,C{teS\Ob-O:L-Ob R.PG M,,,,,C{tes.cloc p~ge 3 of 2 Planning Commission Meeting of June 1, 2006 -' } , ' ! ,","'c ~ .. ' . . "..- .;:-J~,.n~V ',,''-i- ; Public Hearing closed. Commissioner Prouty questioned if there was going to be a no left hand turn at the median. He suggested that they not be allowed to make a left turn which would ensure that the driver goes toward the deck. Mr. Coda noted that they were entertaining the no left turn option but also did not want the customers that were in that area to go back out to the street to get find a parking space. Commissioner Giusti thanked the architect for not using orange color on the structure. Chairperson Zemke asked if the columns that support the parking structure had ivy growing on them. Mr. Coda noted that the columns will have ivy growing on them and the upper level planters will have vines growing on them. Chairperson Zemke also asked if there was going to be a stairway by the cargo elevators. Mr. Coda noted that this will be included. Commissioner Prouty asked if the freight elevators were the same size as those in the Colma store. Mr. Coda noted that the Colma elevators were smaller than the ones proposed in this Home Depot. Chairperson Zemke asked how opaque the mesh behind the wrought iron fence was for viewing purposes. Mr. Coda noted that the mesh is a three to two inch square so that people cannot pull things through them. Commissioner Romero was concerned with the palette enclosure and trash compactor area. He was concerned with this area becoming an outdoor area like with other Home Depots. He noted the importance to have a Condition of Approval requiring for everything to be contained within the building. Mr. Coda noted that there are enclosures that can be solid walls and could screen it more along so that it is not visible from Dubuque. Commissioner Romero asked where the delivery trucks would load and unload materials. Mr. Coda noted that all deliveries are done in the back. Mr. Coda and Commissioner Romero discussed the circulation of delivery trucks on the site. It was explained that the trucks would be at the site when the store is closed to the publiC and would enter the site through the customer access area and then go to the back and unload. Commissioner Romero stated that he does not want to see continuous outdoor storage in the palette area and containers in the parking lot or in the seasonal sales area. Mr. Coda suggested that there need to be some screen walls in the area to ensure what they are after. Commissioner Romero suggested continuing a wrought iron fence to screen the area too. Commissioner Romero asked if the SSF store going to replace the Colma store and if Home Depot was moving more towards serving contractors rather than for the consumers. Mr. Coda noted that they are not planning on expanding their operations to contractors and assured the Commissioner that this site would be a consumer Home Depot. Commissioner Teglia noted that the layout of the building on the property. He felt that the tower sticks out and did not see it as an improvement. He stated that the East elevation is the front door and the North elevation will be visible from 101. He pointed out that the loading docks and the storage will be seen from 101 and the building would have a better presence if it were oriented towards 101. he felt that the building should be offset towards Dubuque and the loading docks should be in the rear facing towards the railroads with a pocket lane. Vice Chairperson Honan asked for a clarification in the deliveries of the materials. Mr. Coda noted that they prefer to have delivery trucks in off peak hours. Vice Chairperson Honan noted that there will be an option of having the store operate 24 hours a day which will cause the store to have deliveries during business hours while there are customers in the store. Mr. George noted that the design and merchandise of the store is a typical Home Depot and not a contractor oriented store and added that the contractor base of their customers is 25%. He added that every delivery is a scheduled delivery and the goal is to deliver on non-peak hours. Vice Chairperson Honan asked if deliveries would be in the day on weekends. Mr. George noted that if they City desires not to have weekend business they could work with no deliveries on one day of the weekend and have deliveries on the other day of the weekend to be fully stoked on Monday morning for business. S:\M,,,,,uteS\Ob-O:L-Ob R.PG M,,,,,utes.cloc p~ge 4- of i? Planning Commission Meeting of June 1, 2006 ...' . . ." . ,,,,: ...,,-.,~.:...i; . ~>J ".; c..,,,~ Vice Chairperson Honan asked where the appliances that have been returned be stored. Mr. George noted that the non operable appliances be scheduled for pickup as soon as possible and be stored near the delivery docks in the meantime. Vice Chairperson Honan asked how often the pickups of these appliances are performed. Mr. George noted that he would look into this and respond to Vice Chairperson Honan. Commissioner Teglia asked if the applicant considered a Home Depot Expo at the site. Mr. George noted that the expo concept and business model changed two years ago and added that 150f those were closed in the United States. Commissioner Sim noted that he is looking at the vertical expressions and noted that the north and west elevations do not match. Mr. Coda noted that these will be corrected because the west elevation is the determining height. Commissioner Sim added that the south and east elevations have the same matching issues. Mr. Coda noted that there are some corner elements that need to be refined corrected. He pointed out that the east elevation needs to wrap and a peak will go away. Commissioner Sim noted that he has not seen the roof plan for the parking structure to see how much density and coverage there is. Commissioner Sim added that the parapet should be screened and should look real. He noted that the loading and unloading is going to be an eyesore. He stated that the architect needs to show cross sections of 101 and how they expect to screen views from this area. He pointed out that the lighting will create a nightscape that will be dramatic when someone drives by. Commissioner Teglia and Mr. Coda explored the reorientation of the building towards Dubuque with loading in the back or on the side. Mr. Coda noted that they have explored it but have little flexibility because of heights and scales. Commissioner Teglia felt that the current design is not the best for the site. Commissioner Prouty asked if the architect could look at the truck delivery area to see if they could avoid any potential storage issues. Mr. Coda noted that there may be a way but could explore the rear corner in totality. Commissioner Sim stated that the cumulative effect of the aesthetics and traffic is significant. He would like to see a diagram of where the footprint relative to the building stands. Mr. Coda noted that some of the photos are very hard to put together but will try and put something conceptual together. Commissioner Romero was concerned with the carts not having a specified storage area because they are scattered throughout the parking lot. Mr. Coda noted that there are cart corrals throughout the parking lot. Commissioner Romero added that there should be a designated storage area for the carts and not throughout the parking lot. Mr. Coda pointed out that the concept is to have them stored in the vestibule. Commissioner Romero asked what would be washed down at the TRC storage. Mr. Coda replied that this is where customers would return any rental equipment and it would be washed down and prepared for next rental. He added that they comply with the current codes for this type of area. Commissioner Romero asked if the outside display area would be on an ongoing basis. Mr. Coda stated that this will be ongoing depending on the sales that are occurring at the time. Commissioner Prouty asked what the use would be for the seasonal sales area. Mr. Coda noted that this area would be used about four to five times a year and with the exception of the Christmas tree sales they are all a week in duration. He clarified that the sidewalk display area will be the ongoing display area. Commissioner Prouty asked if the cart corrals were going to take up some of the parking spaces and if so, how much would it impact the parking on the site. Mr. Coda noted that these are already in the plans and do not impact the parking. Vice Chairperson Honan noted that that this looks like a standard Home Depot building. Mr. Coda noted that it is a custom design because they do not have other Home Depots with a parking garage. She noted that she is not comfortable on the design. Mr. Coda noted that they can work on the details of the corner and pointed out that they are nearing their budget on this project. Vice Chairperson Honan was uncomfortable with the location of s:\/V\,,,,,,,tes\Ob-01.-0b R.PG /V\,,,,,,,tes.cloc p~ge5of 2 Planning Commission Meeting of June 1, 2006 the loading docks and pallet storage. Commissioner Teglia noted that the Commission is looking for other details on the plans, which is something the architect is willing to do but there is a time constraint issue. He suggested having the applicant withdraw their application and work with staff to make the proposed project aesthetically pleasing. He noted that if this is what they are going to render on decision on, then the Commission could conclude that there are no overriding considerations to warrant the project and deny the project. Chairperson Zemke asked for clarification from staff on time constraints. Senior Planner Carlson noted that the applicant has one year under California law with only a maximum of a total of a 90 day extension in which the decision making body has to make a decision, which includes City Council. He noted that the one year timeline was up on May 31 and the applicant has agreed to an additional 60 days, until the end of July. He pointed out that if the applicant returns on the June 15th meeting the Council has both meetings in July to review the project. Commissioner Romero asked that a comparative analysis of Home Depot and Lowe's be given to the Commission when the applicant returns. Senior Planner Carlson noted that both sites are separated by a building and stated that it is difficult to get a good picture of the area from different angles. Commissioner Romero noted that he does not want to move the project forward with a recommendation to deny. He asked if the applicant was willing to return to the Commission and address the issues brought up at the meeting. Mr. Coda stated that they would like the opportunity to do this. He clarified that they granted a 45 day extension which was up to July 15th, He felt that they are agreeable to extending that if the Council needs another session with the applicant. Commissioner Prouty pointed out that getting a full picture of the area and a perspective of both sites is very important so the Commission has a full picture of what this will look like. Mr. Coda noted that they cannot get a 3-dimensional view of the site and a 2-dimensional view of the area is extremely difficult to get. Commissioner Sim noted that a physical model will allow each individual to see the project in different ways and see the entire context of 101, adjacent buildings, and the project. Mr. Coda noted that a 3-dimensional model may not be ready in the short time frame they have. He noted that a strip elevation would give the Commission some sense of the masses. Commissioner Teglia reiterated his concern of the loading dock and trash compactor areas. He suggested that the architect explore putting these on the railroad side. Commissioner Sim suggested seeing a materials color board. Chairperson Zemke noted that the Commission's consensus is to see a roof plan, screening of the freight area or possible relocation, additional detail on the sign tower, cumulative visual effects of this project and Lowe's, cart storage and corner treatments. Commissioner Teglia added that they see the total sign program. Mr. Coda noted that the initial submittal did have the detail and due to time constraints could not include it with this packet. He stated that it would be in the future packet. Senior Planner Carlson noted that the next meeting is on June 15th at which they will have a Public Hearing on Lowe's and this may be the Commission's opportunity to see both projects together. He added that CalTrans sent in a letter after the statutory comment period. Their comments are on the traffic study and one of many of their comments is in their jurisdiction. He pointed out that the City has been using the traffic model that they suggested and has met with CaITrans to inform them of this. He also added that the City is not obligated to respond to their comments because the comment period has closed. Many of the impacts that they are concerned with are occurring in the year 2020 and it is likely that the freeway will not be able to provide traffic accessibility. He concluded that staff is overstating the effects on traffic and local street system. Motion Sim I Second Romero to continue the item to June 15, 2006. Approved by unanimous voice vote. S:\M'''''IAtes\Ob-01.-0b R.PG M'''''IAtes.cloc p~ge b of >5 Planning Commission Meeting of June 1, 2006 .- ~: .... -..J<::' .. . , . ....' . ~.,,,-,').l'. ';~ :..-,'<': --~ Commissioner Teglia addressed the architect and suggested that they ask for additional time if they are not ready by the June 15th meeting. Recess called at 9:25 p.m. Recalled to order at 9:35 p.m. [Items 7-11 were discussed together.] 7. Type "C" Sign (Shell) Eleanor Colombani/Owner Jim Martin/Applicant 710 EI Camino Real P05-0055: SIGNS05-0017 Type "C" Sign Permit to install new signage at a gas station situated at 710 EI Camino Real in the Retail Commercial (C-1-L) Zoning District in accordance with SSFMC Chapters 20.76 & 20.86. 8. Type "C" Sign (Shell) Jim Martin/applicant Equilon Enterprises, LLC/owner 899 Airport Blvd. P05-0056: SIGNS05-0018 Type "C" Sign Permit to install new signage at a gas station situated at 899 Airport Boulevard in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20.76 & 20.86 9. Type "C" Sign (Shell) Peter Tobin/applicant Equilon Enterprises, LLC/owner 123 Linden Ave. P05-0072: SIGNS05-0025 Type "C" Sign Permit to install new signage at a gas station situated at 123 Linden in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24,20,76 & 20,86 10. Type "C" Sign (Shell) Peter Tobin/applicant Shell Oil CO./owner 248 So. Airport Blvd. P05-0073: SIGNS05-0026 Type "C" Sign Permit to install new signage at a gas station situated at 248 So. Airport Blvd in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24,20.76 & 20,86 11. Type "C" Sign (Shell) ARC Architects, Inc.lapplicant Derenzi, Marie G/owner 140 Produce Ave. P05-0111: SIGNS05-0043 Type "C" Sign Permit allowing a master sign program including building facade signs, canopy signs, monument sign, and a pylon signs exceeding 1 0 feet in height and signs exceeding 1 00 square feet in area, situated at 140 Produce Avenue, in the Planned Commercial (P-C) Zoning District, in accordance with SSFMC Chapters 20.81 & 20.86 Senior Planner Carlson presented the staff report. S:\M,,,,,utes\Ob-01.-0b R.PG M,,,,,utes.cloc p~ge 7 of 2 Planning Commission Meeting of May 18, 2006 ..... . . -f < " ,.-. ~-,~~;~- ". . i, "..... . --~,,-, ~-'''-. Commissioner Sim noted his supporting of staff's recommendation and noted that a phasing strategy could also work for the applicant. Commissioner Teglia asked if the roll up doors could be replaced by glass doors similar to what is used in car dealerships. He asked the applicant if they could accomplish their need with a glass door and if two doors were needed. Mr. Leung noted that he needs two doors. He added that a glass door would make his business difficult because they use a hand truck. He pointed out that he does not the means to make any additional improvements to the property because he did not realize the cost of the proposal. Commissioner Prouty felt that the applicant needed to return with a landscape plan and information on the feasibility of installing glass doors or what can be done with the roll up doors. Commissioner Teglia noted that glass doors could work better with the proposed operation. Commissioner Sim stated that the door can also be one big panel that can hinge over or slide up. He added that the applicant work with architect to find stealth technology that will make it work. Commissioner Prouty also asked for colors and texture detail. Commissioner Romero added that the applicant needs to move away from the industrial look and make it look more creative. The Commission, staff and the applicant discussed continuing the item for response the following: . Detail on rollup doors . Color and materials board . Landscape plan Motion Teglia to continue the item to June 15, 2006. Mr. Leung noted that his architect is going to be on vacation for three weeks and may not met the deadline. He suggested that the Commission approve the project with a condition to have him return in a month with the roll up door and landscape plan details. Staff and the Commission discussed continuing the item with pending approvals of the landscape plan and roll up door details. Senior Planner Carlson noted that the Commission could do this because the landscaping would be installed last. Motion Teglia / Second Sim to approve P06-0010: UP06-0006 & DR06-0010 subject to future review of the aesthetics, rollup doors, landscape and colors / materials board within 30 days of issuance of the building permit. Approved by unanimous voice vote. Vice Chairperson Honan - absent Recess taken at 8:49 p.m. Recalled to order at 9:00 p.m. 5. Home Depot/applicant Levitz SL San Francisc%wner 900 Dubuque Ave. P05-0035: PUD05-0003, UP05-0010, TDMO-0003, SIGNS05-0044, EIR05-0003 &. DR05-0020 Environmental Impact Report assessing environmental impacts, Planned Unit Development allowing a reduced front setback; Use Permit allowing outside storage and display, Design Review allowing construction of a 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure and generating in excess of 100 daily vehicle trips; Type C Sign Program comprised of building facade signs and retention of an existing pole sign with a total area exceeding 300 square feet; Transportation Demand Management Plan reducing traffic effects, situated at 900 Dubuque Avenue in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24, 20.81 & 20.85 Public Hearing opened. Senior Planner Carlson presented the staff report. S:\M'''''l{tes\OS-1.2-0b R.PG M'''''l{tes.cloc p~ge 5 of..'? Planning Commission Meeting of May 18, 2006 Greg George, Home Depot Real Estate Manager, presented the project team. Frank Coda & Carolyn Shaw, Architects, gave a PowerPoint presentation showing how option "A" addressed onsite circulation number of parking spaces and pedestrian access from upper level. Mr. Coda pointed out that the deck has been moved to attach to the building which allowed them to pick up 65 additional spaces. He noted that option "8" does not have any of the changes in option "A". He showed pictures showing the different views of the site. He also showed a comparison of the Colma site plan and the Dubuque Avenue site plan. He pOinted out that they will have 2 freight sized elevators. Mr. Coda noted that one of the differences between the Colma store and the South San Francisco (SSF) store is that Colma has one access point and the SSF store has two access points. Public Hearing closed. Commissioner Romero noted that he and Commissioner Sim saw a presentation of big box retail at the Planner's Institute. He showed pictures of a Home Depot in Southern California that was a superior design. He was concerned with the current design and felt uncomfortable with the proposal. Commissioner Sim noted that he is looking at the entire area. He noted that it was important to look at the cumulative effect on the entire corridor with other applications that are in the process due to the importance of the corridor. He noted that the pictures presented by Commissioner Romero show more detail than the SSF proposal and pOinted out that this detail needs to be reflected at the site also. He felt that the architect needed to concentrate on the architectonic features first rather than on landscaping that may not be as full as shown on the renderings. TAPE 2 - bad Commissioner Sim continued his comments by asking for more views and elevations of the project in conjunction with the adjacent projects. TAPE 3 Commissioner Prouty noted that the largest issue is going to be circulation with regard to the intersection exiting from 101 Northbound. He added that it is so narrow that there will be problems with cars backing out onto the freeway. Commissioner Teglia noted that these comments are the same issues that were brought up at the Joint Study Session. He pointed out that the Commission and Council encouraged them to make this project the best Home Depot created because it will be viewed from 101. He stated that the original design is being adhered to and the old pole is going to remain. He felt that the building could be situated at that marquis and make it a nice quality looking building. He added that the parking structure is encroaching into the setback and that roof parking was a possibility that was brought up at joint study session. This would allow them to pull back from the setback. He was also concerned with traffic on Dubuque and backing up to the hook ramps. He suggested a straight lane to Home Depot and allowing straight access from the intersection. Chairperson Zemke noted that he prefers option "A". Commissioner Prouty asked why the parking analysis used stores in EI Camino, Hayward and San Mateo but not the Colma store. Mr. Coda noted that the consultant was directed not to look at it because its revenues are much higher than they should be, which is t he reason why they are looking at the SSF site for a new store. He added that the stores chosen are bringing in the projected revenue for this store. He pointed out that the suggestion to close an island can be done also. He asked if there was a particular style that the Commission was interested in having. Commissioner Teglia noted that at the study session they were informed that the City was looking for top quality design and not have the bright orange so visible. S:\M,,,,,utes\05-1i?-Ob R.PG M,,,,,utes.cloc p~ge b ofj Planning Commission Meeting of May 18, 2006 DIll" ,-- . ' . .. 10 - -. -~.J,,, .'; .... ,"J""" Mr. Coda asked for direction from the Commission in what type of aesthetics they are looking for. Some of the comments the Commission offered were: · Roof parking with at grade parking rather than the parking structure. · Reorienting the building · Allow for different skinning techniques with different colors of stucco . Use of different materials · Stealthing so that it does not look like a warehouse look and give it some frontality. · Reconfigure the building to face Dubuque rather than facing the parking structure. Mr. Coda noted that they can work on the aesthetics and design. He stated that they looked at rooftop parking and was not economically feasible. He added that they can work on a fac;;:ade for Dubuque but the main entrance will be towards the parking lot. He also suggested including a tower element at the corner Commissioner Prouty suggested that the entrance to the parking lot be straight off the freeway on the northern portion of the site. He felt that this would eliminate some of the queuing problems. Mr. Coda noted that the area in question is a Caltrain controlled intersection and they may not grant an access point at that intersection. Senior Planner Carlson pointed out that this option was looked at early in the process but being that it is owned by the Joint Powers Board (JPB) the application process would have gone in a different direction. Commissioner Teglia noted that the Commission can make a formal request to explore access through that area of the site to JPB. Senior Planner Carlson pointed out that asking for this may be difficult to get from them. He also noted that the permit streamlining deadline is fast approaching. Commissioner Teglia felt that the entitlements being requested were pushing the envelope and pointed out that the traffic impacts from these entitlements need to be resolved now before they become a problem later. He suggested that access on the northern point of the site can be looked into. Senior Planner Carlson noted that staff could follow up on this but it may adversely affect the project. Commissioner Sim asked to see if the traffic consultant felt this would mitigate the problems. Mark Crane, Traffic Consultant, noted that this would be difficult to implement because there is not much distance between the intersection and the railroad tracks. He pointed out that an immediate curve to the right would need to be provided in order to serve Home Depot. He also noted that access at another location is needed to the warehouse to have a smooth channelized ingress and egress serving Home Depot. Another issue Mr. Crane noted was the interchange has a delicate balance with the intersections not operating at an acceptable level of service in the year 2020. He noted that the intersection serves as a "T" intersection and if it is revised to serve Home Depot from that intersection, there will be a large amount of traffic to and from the warehouse. He added that in 2020 the traffic on the intersections will be barely cleared. He pointed out that with a four-legged intersection there will be another level of delay where a second departure lane from the freeway will need to be created. Mr. Crane further noted that when they looked at Home Depot and Lowe's in operation, the queuing did fit into the available storage length. The new plan has an additional left turn pocket which will serve the central driveway. He pointed out that the second driveway will be a second entry point if there is a backup at the first driveway. He also noted that the new proposed driveway is 30 feet wide and has room for 1 inbound and 1 outbound lane with 110 feet of queuing space. He added that there is room for a second inbound lane to the driveway. Commissioner Prouty asked if there would be a traffic light at the intersection. Mr. Crane noted that it does not meet the requirements for a traffic light but if needed in the future a 4 way stop sign could be installed. Commissioner Teglia and Commissioner Prouty were comfortable with having Home Depot add the second driveway isle, as well as install a 4 way stop sign if it is needed in the future. Chairperson Zemke noted that the Commission is not satisfied with the design aspect of the project and questioned if the applicant was willing to return with changes. Mr. Coda replied affirmatively and added that there is a mitigation measure requiring them to perform a study up S:\M,,,,,utes\05-1.:?-Ob R.PG M,,,,,utes.cloc p~ge 7 ofj Planning Commission Meeting of May 18, 2006 1liii, .. . , ., " .. ,'~ ,.-.", < ,- ..,~ ,.. ,~~ ... ..:" .".~- to 2010 to determine if they will install a stop sign or signal at the driveway entry. Commissioner Giusti noted that the parking garage will be the focus of the building and asked if it would be behind the building. Mr. Coda noted that parking garage and the warehouse will look like one large integrated building. Commissioner Romero asked to see the building without the landscape and with the landscaping. Senior Planner Carlson, the Commission and the Mr. Coda discussed potential dates of having Home Depot return to the Commission for further review and if the architect would have enough time to respond to all the Commission comments. Mr. Coda noted that they could be back by the June 1, 2006 meeting. Mr. Coda noted that with the second lane there may be a loss of parking and wanted to know if the Commission was comfortable with this. Commissioner Prouty noted that there does need to be enough parking so that customers are not circulating around the parking lot looking for a spot. Commissioner Teglia suggested looking once more at rooftop parking. The Commission felt that option "A" was better. Motion Tealia I Second Prouty to continue the item to June 1, 2006. Vice Chairperson Honan - absent. ADMINISTRATIVE BUSINESS 6. Cityview Marbella 280, LLP/Owner Watt Communities/ Applicant Gellert Boulevard POS-OllSj DR06-0041 Confirmation of the Acting Chief Planners approval of the color samples and roof materials for South City Lights (formerly Marbella) at 2280 Gellert Blvd in the Multi-Family Residential (R-3-L) Zone District. Acting Chief Planner Kalkin stated that the sample of the roof material had been installed on the site and the Commission had been invited to see it. She noted that Scott Allman was requesting that the Commission approve the materials that have been installed on a portion of the site. Scott Allman, Watt Communities, noted that their color consultant would make a presentation on the colors and materials to the Commission. Leslie Tipple, , noted that they are trying to go with a Mediterranean look and chose warm earthone colors. She explained in detail the colors on all 3 color schemes. The Commissioners noted that they had been out to the site and were satisfied with tile and the colors chosen for the site. Consensus of the Commission to recommend that the City Council confirm the Adina Chief Planners aooroval of the color and roof materials. ITEMS FROM STAFF Assistant City Attorney Spoerl informed the Commission that the City Council at a study session on April 19, 2006 discussed policy changes to absences for Boards and Commissions. He explained that 3 absences in a 12 month period or absences in 1/3 or more of the meetings in one year would cause for that person's appointment to be put on an agenda and may result in termination by the City Council. He added that the policy will allow one grace absence; the second would call for a warning letter from the Mayor and the third would be possible termination. S:\M,,,,,,,tes\OS-1.2-0b RPG M,,,,,,,tes.cloc p~ge 20fj Planning Commission Meeting of March 2, 2006 8. Levitz SL San Francisco/Owner Home Depot/Applicant 900 Dubuque Avenue P05-0035, EIR05-0003 (SCH# 2005-08-2032) Conduct a public hearing and take public testimony on the Home Depot Draft Environmental Impact Report. Public Hearing opened. Senior Planner Carlson presented the staff report. Public Hearing closed. Vice Chairperson Honan asked that the Traffic Consultant give a summary of the traffic study findings. Mark Crane, Crane Transportation Group, noted that they looked at Home Depot in conjunction with Terrabay and Lowe's being fully constructed. He noted that Dubuque will be the main congestion area and cars will wait a couple cycles at the intersection. He added that vehicle queues will be extending to the afternoon hours. He noted that the entry driveway to the garage is not channelized far enough into the parking lot. He added that parking may not be adequate on Saturday afternoons for a couple hours. Commissioner Prouty asked if the Traffic Consultant has suggested making changes to the proposal. Mr. Crane noted that they have identified the problem and recommended that the applicant look at redesign of the parking lot. Commissioner Giusti suggested redesigning the garage also. Commissioner Romero felt that there is a conflict between the vehicles and foot traffic. Mr. Crane noted that the ramp at the second level does not pose as a problem because of its location. Vice Chairperson Honan asked if the delivery trucks would impact the traffic. Mr. Crane noted that the southerly driveway will have no pedestrian traffic and the delivery trucks would use this driveway. Vice Chairperson Honan asked if the calculations, which included Terrabay, factor in the retail portion of the project. Mr. Crane noted that the proposal included the version that was before the Planning Commission a few weeks ago. Commissioner Romero questioned if the consultant considered loading and unloading of building materials at the parking lot into the traffic study for circulation purposes. Mr. Crane noted that the parking isles are designed per the City's criteria for shopping centers. He added that there is always the potential for blocking the isles. ADMINISTRATIVE BUSINESS 10. A third review of the remaining Conditions of Approval associated with UP04-0029 - 915 Linden Avenue Moved to Consent Calendar under Agenda Review. ITEMS FROM STAFF Chief Planner Sparks noted that the Commission will have a Joint City Council / Planning Commission meeting regarding the Genentech Master Plan and the most current rendition of Terrabay Phase III. Assistant City Attorney Spoerl noted that there is an ethics training meeting that will be held on March 9th from 6-8 p.m. s:\Mll'l.w.tes\f'll'l.llLLzed MWM.<teS\;WOG\03-0~-OG RPC MWM.<tes.doc p~ge5ofG DRB Agenda March 15, 2005 Page 4 of7 8. OWNER: APPLICANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: ESTIMATED TIME Laurence Jacobs Ted Witt 390 Swift Ave. #7 P05-0038 & UP05-0012 Use Permit (Case Planner: Steve Carlson) DESCRIPTION: Use Permit allowing food preparation with daily hours of operation from 7 AM to 2 AM, situated at 390 Swift Avenue in the Planned Industrial Zoning District (P-I) in accordance with SSFMC Chapter 20.33. The Board had no comments. Approved as submitted. 9. OWNER: APPLICANT: ADDRESS: PROJECT NillvIBER: PROJECT NAME: Nguyen, Toan C. Nguyen, Toan C. 656 Spruce Ave. P05-0022, UP05-0006 & DR05-00I4 Use Permit for deck exceeding 300 sq ft (Case Planner: Steve Carlson) DESCRIPTION: Use Permit and Design Review to construct a rear deck greater than 300 square feet in the Single-Family Residential (R-I-E) Zoning District in accordance with SSFMC Chapters 20.16, 20.81 & 20.85. The Board had the following comments: 1. Bring the railing of the old deck up to code and use the same picket design and spacing as you are using on the new deck. 2. Adjust the spacing on the pickets to comply with UBC requirements. Submit changes to the Planning Division. No need to go back to DRB. Dinner Break 10. OWNER: APPLICANT: ADDRESS: PROJECT NillvIBER: PROJECT NAME: DESCRIPTION: 5:55 pm Levitz SL San Francisco Home Depot 900 Dubuque Ave. P05-0035, UP05-00IO & DR05-0020 Home Depot (Case Planner: Steve Carlson) Use Permit and Design Review to allow construction of a 101,272 sf Home Depot store, a 24,522 sf Garden Center and a 2- story (3 level) parking structure situated at 900 Dubuque Avenue in the Planned Commerical (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24, 20.81 & 20.85. DRB Agenda March 15, 2005 Page 5 of7 ESTIMATED TIME The Board had the following comments: 1. Continue the building detailing onto the south and west elevations, not just on the north and east elevations. 2. Single-pole freestanding can signs are not encouraged. Consider a different type of design such as a pylon sign. 3. Consider incorporating rooftop parking over the store to reduce the height of the proposed parking structure. The 3-story parking structure, as it is, overwhelms the view from soutbound Highway 101 4. A lot of the species on the plant list will not do well in SSF. Revise the plant schedule using species that are better suited to SSF's climate. Consider using some of the trees from the opposite side of the street; Magnolias and flowering pear trees are the most common types. 5. The trees around the parking structure need to be taller. 6. More detail on the landscaping at the main entry driveway between the two buildings. 7. Use creeping fig or boston ivy on the parking structure. 8. Plant trees along the south and west property lines Revise plans and resubmit to the DRB for further review. 11. OWNER: APPLICANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: Prasad, Mahendra Prasad, Mahendra 711 Hickory Place P04-0109 & DR04-0061 New SFR on Hickory Place (Case Planner: Steve Kowalski) Resubmittal DESCRIPTION: Design Review of a new single-family dwelling on Hickory Place behind 710 Olive Avenue in the Medium Density Residential (R- 2-H) Zoning District in accordance with SSFMC Chapters 20.18 & 20.85. The Board had the following comments: 1. The house is still too massive; some of the reductions made to the 3rd floor should be continued on the 2nd floor to help make the structure look less massive. 2. The front elevation still bas too many different roof designs. Simplify the roof plan even further so that the front elevation doesn't look so incongruous. 3. Change ceiling heights from 9'0" to 8' or 8'6" to cut down some of the height. 4.. Strawberry trees will not grow as tall as the house; select a species that will grow to approximately the same height as the house. S. Clearly show the outline of the landscaped areas and paved surfaces in the rear yard on the Site Plan. Revise the plans and resubmit to the DRB for further review. May 17, 2005 Page 4 of9 7. OWNER: APPLICANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: Levitz SL San Francisco Home Depot 900 Dubuque Ave. P05-0035, DR05-0020 & UP05-00lO Home Depot (Resubmittal) (Case Planner: Steve Carlson) DESCRIPTION: Use Permit and Design Review to allow construction of a 101,272 sf Home Depot store, a 24,522 sf Garden Center and a 2-story (3 level) parking structure situated at 900 Dubuque Avenue in the Planned Commerical (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24, 20.81 & 20.85 The Board had the following comments: 1. Do not use internally illuminated can signs; use external lighting or individually illuminated channel letters. 2. Consider grouping the roof mounted equipment and using roof screens. No need to come back to the DRB. 8. DINNER BREAK OWNER: APPLICANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: Ping Hsu Ping Hsu Vacant Lot - Terrabay (phase I Area) POS-0018, PP05-0001 & PM05-0001 Terrabay (Case Planner: Steve Carlson) DESCRIPTION: Precise Plan and Tentative Parcel Map to divide a 9,261 square foot lot into three lots and develop a single family home on each situated at the intersection of Northcrest and Windcrest Lane in the Terrabay Specific Plan District in accordance with SSFMC Chapters 19.48 & 20.63 The Board had the following comments: 1. Provide a cross section for the entire site including all retaining walls and staircases to clarify builing pad relationships. 2. Specify the type of retaining walls and materials to be used on the plans. 3. Submit a materials and color board for the exterior finishes. 4. Show the steps outside the entrance to the home on Lot 179A. 5. The North elevation of 179A is missing the garage window. 6. Add a window to the garage on Lot l79B. 7. The master bedroom of l79B is missing a window on the west elevation. 8. The 2nd -story bay over the garage on Lot 179B is missing from the roof plan. 9. The 2nd_story bay in Bedroom #3 on Lot l79C is missing from the roof plan. 10. The spaces between the homes are much too narrow for a Bishop Pine and Monterey Cypress. Delete the trees and just use Escalonia shrubs instead. 11. Incoporate the landscape pallete from the Phase I Terrabay Development to improve the qualiyt of the fit with the existing neighborhood. Revise plans and resubmit them to the DRB for further review. May 17, 2005 Page 4 of9 7. OWNER: APPLICANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: Levitz SL San Francisco Home Depot 900 Dubuque Ave. POS-003S, DR05-0020 & UPOS-0010 Home Depot (Resubmittal) (Case Planner: Steve Carlson) DESCRIPTION: Use Permit and Design Review to allow construction of a I 01,272 sf Home Depot store, a 24,S22 sf Garden Center and a 2-story (3 level) parking structure situated at 900 Dubuque Avenue in the Planned Commerical (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24, 20.81 & 20.8S The Board had the following comments: 1. Do not use internally illuminated can signs; use external lighting or individually illuminated channel letters. 2. Consider grouping the roof mounted equipment and using roof screens. No need to come back to the DRB. 8. DINNER BREAK OWNER: APPLICANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: PingHsu PingHsu Vacant Lot - Terrabay (phase I Area) POS-0018, PPOS-OOOl & PMOS-OOOl Terrabay (Case Planner: Steve Carlson) DESCRIPTION: Precise Plan and Tentative Parcel Map to divide a 9,261 square foot lot into three lots and develop a single family home on each situated at the intersection of North crest and Windcrest Lane in the Terrabay Specific Plan District in accordance with SSFMC Chapters 19.48 & 20.63 The Board had the following comments: 1. Provide a cross section for the entire site including all retaining walls and staircases to clarify builing pad relationships. 2. Specify the type of retaining walls and materials to be used on the plans. 3. Submit a materials and color board for the exterior finishes. 4. Show the steps outside the entrance to the home on Lot 179A. 5. The North elevation of 179A is missing the garage window. 6. Add a window to the garage on Lot 179B. 7. The master bedroom of 179B is missing a window on the west elevation. 8. The 2nd_story bay over the garage on Lot 179B is missing from the roof plan. 9. The 2nd -story bay in Bedroom #3 on Lot 179C is missing from the roof plan. 10. The spaces between the homes are much too narrow for a Bishop Pine and Monterey Cypress. Delete the trees and just use Escalonia shrubs instead. 11. Incoporate the landscape pallete from the Phase I Terrabay Development to improve the qualiyt of the fit with the existing neighborhood. Revise plans and resubmit them to the DRB for further review. 15101 Red Hill Avenue Suite 200 Tustin, CA 92780 t: 7142590500 f: 7142595480 GreenbergFarrow ATLANTA NEW YORK CHICAGO LOS ANGELES BOSTON DALLAS NEW JERSEY June 28, 2006 To Steve Carlson, Senior Planner Planning Division City Hall- City of South San Francisco 315 Maple Avenue South San Francisco, CA 94083 (650) 877-8535 Project The Home Depot - S. San Francisco/Dubuque, CA Project # 20040809.2 Re Updated plans from June 1, 2006 Planning Commission Hearing Dear Steve: Enclosed is our resubmittal package for the July 6, 2006 Planning Commission Hearing. We have addressed the Commissioners' comments concerning freight area screening and cart storage, a cumulative elevation along Dubuque Avenue, continuity at the corners of the building, an updated sign program and a garage roof plan. 1) Freioht area screenino: The site plan (sheet 2) has been revised to show the truck dock angled away from direct view of drivers along Dubuque Avenue, Interstate 101 and Airport Blvd. beyond. The elevations (sheet 12) show a 10'-0" tall masonry wall along Dubuque Avenue and an 8'-0" tall masonry wall along the south property line which screen the truck dock view from drivers. These screen walls will be architecturally designed with steel insets for ivy growth. 2) Cart Storage: The site plan shows the cart storage inside the Entry Vestibule. 3) Stairs: The stairs from the store level to the upper parking deck is shown on the site plan and will be tied together with the elevators with a steel framed covered awning. 4) Cumulative Dubuque Avenue elevations: a separate elevation showing the proposed Home Depot building, the existing single story offices and the proposed Lowes building is included in the package. 5) Continuity at the corners of the buildino: The elevations show all the sides turn the corner with matching architectural features. 6) Sign Prooram: We have updated the sign program as shown on sheet 13 with sign details. 7) Garaqe roof olan: We have included the trellis and light pole locations on the upper level garage site plan (sheet 2), as well as shown landscaping on the upper level on the landscape plan (sheet 7B). We appreciate the Commission's comments and look forward to presenting to them again. Sincerely, Caroline Shaw CC: Leslie Marshal, Klaff Realty Greg George, The Home Depot Bob Burnside, The Home Depot Debbie Kartiganer, Cassidy Shimko Dawson Kawakami Mike Pacelli, Bay Relations Frank Coda, GreenbergFarrow 01 Project Letter 07.01.05 J:\AdminI2004120040809120040809 Project Letter To Steve Carlson 6_28_2006A.doc Project Description for THE HOME DEPOT SOUTH SAN FRANCISCO, CALIFORNIA February 28, 2005 Revised May 5, 2005 Existing Conditions A. Existing Uses and Features - Proiect Site: Existing Land Use: Business Commercial General Plan: Business Commercial Zoning: P-C Planned Commercial; both the East 101 Area Plan LU-4a and the Zoning Code Section 20.24.020 state that retail sales are permitted in P-C districts The proposed site is located on property owned by Levitz SL San Francisco and consists of a single 7.62-acre parcel. It is currently occupied by a +/- 156,637 square foot building where Levitz is operating a furniture store and warehouse with four depressed loading docks and a paved parking lot. At the rear of the building, there is an abandoned railroad spur, which once served the warehouse portion of the Levitz, and will be removed prior to site construction. The site is relatively level and slopes away from the building entrance towards the northeast corner of the site. Site vegetation consists of native, mature trees and overgrown bushes and shrubs. A number of eucalyptus trees, varying in size from 1 A" to 36" in diameter, and redwood trees, varying in size from 1 A" to 30" in diameter and a 24" diameter cypress tree are dispersed throughout the site. Most natural features are gone because of the commercial use. There are no cultural, historical or scenic aspects about the site. Based on a January 6, 2005 Phase I Environmental Site Assessment provided by Environ International Corporation for Home Depot, there are no "recognized environmental conditions" identified on the property. Due to the age of the existing building, however, asbestos abatement will be necessary during building demolition. B. Existing Uses and Features- Adiacent Site: The site is bound by Dubuque Avenue and Interstate 101 on the west and is located within the East of 101 Area Plan Overlay District. To the north is the Oyster Point Boulevard intersection and to the east is the operating Southern Pacific Railroad main line and beyond that is the Gateway Business Park, a series of mid rise office buildings. To the south are single story offices and business services. Most natural features (plants and animals, namely) are gone on these adjacent and surrounding properties because of the commercial use. There are no cultural, historical or scenic aspects about the surrounding properties. Project Description The Home Depot proposes to construct a Home Depot store building, outdoor Garden Center and a -3 ~Ievel parking structure. Street dedication of +/- 0.01 acres will be given to the City 01 Leller 03.14.00 ):\ADMIN\2004\20040B09\DRB Resubmlttal\20040B09 Ping. App Revised Project Desc. Leller 5_ 4_05.Doc in order to align Dubuque Avenue as requested by the Public Works Dept. A Use Permit (for (j) generating over 100 trips/day, (ij) an accessory structure exceeding 20 feet, (iij) hours of operation between midnight and 6am, and (iv) open display and storage of goods, materials or vehicles), Design Review approval and a Type "c" Sign Permit. The Home Depot would participate in the Transportation Demand Management Program (TDM) as required by Municipal Code Chapter 20.120 in connection with the project. The Home Depot building (not including vestibules) would measure 101,272 square feet, with an adjoining 24,522 square foot Garden Center (125,794 square feet total). The Garden Center would include a 1,320 square foot House Plant Enclosure (HPE) for the sale of indoor plants and related accessories. The project perimeter wall would be 28'-0" high, with a cornice and an accentuated entrance area at 38'-0" high. The parking structure would be ~ 29'-6" tall at its highest point. The Home Depot building site coverage would be ~ 37.95%. The required parking ratio for Retail and General Commercial Use is 1 space per 200 square feet, or 629 parking spaces in the case of the store. 'Nhich would be achieved ',vith n 3 level pnrking structure in front of the building. The project would include 6-34 426 parking stalls, which would be achieved with a 2 level parking structure in front of the building. This number of parking spaces is sufficient based on the findings from a parking study of 3 comparable stand alone stores in the Bay Area. This would address the ORB's March 15, 2005 comment regarding the bulk of the parking structure in front of the building. The Site Plan attached proposes two bicycle parking stall areas at the building entry for 12 bicycles. Project construction would include parking lot paving and striping, site lighting and utility installation. Site landscaping would include landscape islands, planters and berms along Dubuque Avenue to buffer the parking lot from the street. Cart corrals would be located as designated on the Site Plan and would be constructed of painted, galvanized metal pipe around a 9' wide x 16' long area. To soften the look of the concrete parking deck, ivy would be planted on the columns facing Dubuque Avenue, Interstate 101 and the Gateway Business Park. Roof top mechanical equipment would be screened by the raised builcHng parapet walls. Three of the four existing driveways for vehicular access from Dubuque Avenue are proposed to be maintained, or slightly modified, for the Home Depot use. The main truck access to the site would be from the existing southwest Dubuque Avenue entry drive. Trucks would travel along Dubuque Avenue, back up into the Truck Dock to drop off merchandise and leave the site via the same driveway. Three loading docks are required and would be provided as shown on the Site Plan. Lumber trucks would off load at the southeast corner of the building, proceed around the front of the store and exit the site via the Garden Center driveway. Emergency vehicle access would be provided around the entire store. Uses The proposed use is for the retail sales of building supplies, lumber, hardware, and associated items such as appliances, barbeques, pool accessories, home furnishings, patio furniture and materials associated with home improvement maintenance and repair. The proposed project includes an outdoor Garden Center/Nursery for retail sales of plant and nursery items. The proposed use would also include accessory uses such as the rental of tools and equipment for construction, gardening and home improvement projects, propane sales, the sale of trailers and sheds, on-site truck rentals (also known as Load N' Go) and independent food service vendors. The Home Depot- Revised Project Description May 5, 2005 Greenberg Farrow Architecture (714) 259-0500 Pg. 2 of 5 The project use would include outdoor sidewalk sales and display of special products, such as plant and nursery materials, barbeques, outdoor patio furniture, tools and seasonal decor, along the building front sidewalk. Seasonal sales events of items such as pumpkins and Christmas trees would take place in a 5,775 sf area of the parking lot along Dubuque Avenue as shown on the attached site plan. The maximum number of seasonal sales events would typiGlII-,. occur about 1 to 5 12 times a year. These uses would occur within permitted noise levels for the Planned Commercial Use of 60 dB between the hours of 1 Opm - 7am and 65 dB between the hours of 7am - 10pm per Municipal Code Table 8.32.030. Site Design In order to promote The Home Depot's Load N' Go (truck rental) and tool rental services and for customer convenience, the Load N' Go area and Tool Rental Center Storage Area would be located close to the Tool Rental department. The Wash Down Area (a 10 foot tall enclosure where hand tools are washed after each rental and returned back to the store) would be located close to the Tool Rental Center Storage Area so that Home Depot associates may clean and restock tools expeditiously. The Wash Down Area enclosure would include a dedicated drain that connects to the storm drain system through an oil separator. The Tool Rental Area would be located inside the building immediately next to the Tool Rental Center Storage for easy access. The transformer, emergency generator, and pallet storage would be located in a 6' tall masonry enclosure located at the rear of the store, as shown on the Site Plan. The enclosure would not be visible from the public street. Architectural features, such as decorative pilasters at the Garden Center, accent cornice and earth toned paint color would be added to the elevations to create depth and to reduce the building to pedestrian scale. Light fixtures along the building walls would provide relief and security to all sides of the store. The trash compactor would be located in the depressed (sunken) truck dock. Enclosures for the Tool Rental Storage, Building Materials Storage and Will Call Areas would be 12 feet high and constructed with black vinyl security mesh to match the Garden Center fence. The Garden Center fence, however, would be 20 feet high. An orange A-Frame (saw-tooth) Garden Center canopy facing the parking lot would be constructed of polyvinyl fabric. Lighting For site lighting, The Home Depot proposes to install three 40 foot taillight poles along the perimeter of the site; one each at the 2 main drive aisles on Dubuque Avenue and one at the northeast corner of the site. Lighting on the ground and first floors and the ramps of the parking structure will be metal halide parking garage luminaries surfaced mounted at 15'-0" above floor finish. The Home Depot proposes to install its standard 25 foot taillight poles on the second upper floor parking deck. The proposed square box type parking lot lights are manufactured by Lithonia and provide little or no glare onto the adjacent properties or the drivers exiting the freeway or driving on Dubuque Avenue. Decorative wall fixtures with direct down light on the building would keep glare away from adjacent property and provide security luminance. The Home Depot- Revised Project Description May 5/2005 Greenberg Farrow Architecture (714) 259-0500 Pg. 3 of 5 landscaping The proposed landscaping has been designed to conform to the Landscape Standards listed in the East of 101 Area Plan Policy DE-55 and The Water Efficient Landscaping and Irrigation Guidelines, as shown onthe conceptual Landscape Plan in the submittal package. Section 13.30.100 of the Municipal Code, states that new development in areas designated as "business commercial" under the City's General Plan is required to plant one tree for every two thousand square feet of floor area (the Planning Director is permitted to count existing trees toward this requirement). For the 125,794 square foot proposed project, 63 trees would be required. However, the Home Depot project would remove 14 existing trees; 7 of which are by the City's definition in the Zoning Code, "protected" trees. "Protected" trees are trees with a circumference of 48" or more when measured at 54" above natural grade. "Protected" trees must be replaced with either three 24" box trees each or two 36" box trees each. The proposed Landscape Plan would ffleet exceed both criteria by providing 77 162 total trees, including replacing the 7 "protected" trees with two 36" box trees each. Signage The following signage (total 768.33 960.33 S.F.) is proposed for the project: Parking Structure facing Dubuque Avenue and Oyster Point Boulevard- "The Home Depot" at 5' x 60' = 300 S.F. on upper level North Garden Center fence facing Dubuque Avenue- "The Home Depot" at 10' x 10' = 100 S.F. East Building wall facing Parking Structure - "The Home Depot" at 3' )( 36' III 108 S.F. 5' x 60' = 300 S.F. "Nursery" at 2' x 14'-8"= 29.33 S.F. at Garden Center "Contractor Pick-Up" at 2' x 25'-6" = 51 S.F. at Pick-Up Vestibule "Tool Rental Center" at 3' x 10' = 30 S.F. on building Existing Pylon sign - Reuse existing pylon structure and replace panel with 150 S.F. Home Depot square panel Pursuant to Chapter 20.76 of the Zoning Code, a Type "c" Sign Permit (appealable to the City Council) would be obtained for the requested signage. Please see accompanying Sign Permit application for detailed information. Store Operations The project would require delivery of heavy merchandise. Some items would be off loaded at the loading docks outside the building and brought inside the building by forklifts. The store operating hours are typically from 6 AM to 10 PM, with the option of remaining open for business 24 hours per day. Truck deliveries would occur throughout the day and may include 24-hour deliveries. The Home Depot- Revised Project Description May 5, 2005 Greenberg Farrow Architecture (714) 259-0500 Pg. 4 of 5 Home Depot would employ approximately 150-175 full and part-time employees, primarily from the local communities. A number of key managers and employees would be transferred from other stores to maintain quality of service and operational consistency. There are typically 2 to 3 shifts of employees on each business day (although stores with 24 hours operations have 3 to 4 shifts of employees), with 50 to 75 employees for each shift. The Home Depot- Revised Project Description May 5, 2005 Greenberg Farrow Architecture (714) 259-0500 Pg.5of5 May 11, 2006 GREENBERG FARROW 15101 Red Hill Avenue, Suite 200, Tustin, California 92780 tel 714.259.0500 I fax 714.259.5480 www.greenbergfarrow.com DALLAS, Texas Steve Carlson, Senior Planner Planning Division City Hall- City of South San Francisco 315 Maple Avenue South San Francisco, CA 94083 (650) 877-8535 Project: The Home Depot- 900 Dubuque Avenue South San Francisco, CA LOS ANGELES, California ATLANTA, Georgia NEW YORK, New York CHICAGO, Illinois SOMERSET, New Jersey Project Number: 20040809.2 RE: Planned Unit Development Generalized Narrative - APN 015-021-110 Dear Mr. Carlson, In conjunction with the information noted on the Planned Unit Development application form, below is the Generalized Narrative in support of allowing 1) parking stalls to be installed within the 20' front yard setback and 2) the proposed parking reduction for The Home Depot project: 1. Location of the site and 2. Total acreage. The proposed project would be located on property owned by Levitz SL San Francisco, which consists of a single 7.62-acre parcel. It is currently occupied by a +/- 156,637 square foot building where Levitz is operating a furniture store and warehouse with four depressed loading docks and a paved parking lot. At the rear of the building, there is an abandoned railroad spur, which once served the warehouse portion of the Levitz, and would be removed prior to site construction. The site is relatively level and slopes away from the building entrance towards the northeast corner of the site. Site vegetation consists of native, mature trees and overgrown bushes and shrubs. A number of eucalyptus trees, varying in size from 10" to 36" in diameter, and redwood trees, varying in size from 1 0" to 30" in diameter and a 24" diameter cypress tree are dispersed throughout the site. Most natural features are gone because of the commercial use. There are no cultural, historical or scenic aspects about the site. 3. Existing character and use of the site and adjoining properties. The site is bound by Dubuque Avenue and Interstate 101 on the west and is located within the East of 101 Area Plan Overlay District. To the north is the Oyster Point Boulevard intersection and to the east is the operating Union Pacific Railroad main line and beyond that is the Gateway Business Park, a series of mid rise office buildings. To the south are single story offices and business services. Most natural features (plants and animals, namely) are gone on these adjacent and surrounding properties because of the commercial use. There are no cultural, historical or scenic aspects about the surrounding properties. 01 Lener 03.14.00 ):\ADMIN\2004\20040B09\PUD Applicalion\20040809 PUD App Letter 5_08_2006 (3).Doo The Home Depot PUD Application 5/11/06 pg. 2 of 4 4. The concept of the proposed PUD including: a. Proposed uses and activities including phasing, if applicable. The proposed uses and activities for the project are set forth in the revised Project Description dated May 5,2005, a copy of which is attached hereto. The project has been redesigned as shown in the drawings submitted to the City on April 3,.2006; Home Depot has proposed two different versions ("Option A" and "Option B"). Option A, which is the preferred option, would provide a total of 490 parking spaces, while Option B would provide 429 parking spaces.' In either option, some of these spaces would be located within the 20-foot front yard setback of the site due to space constraints. Pursuant to Section 20.74.060 of the City's zoning code, the project would require 629 spaces,2 and pursuant to Section 20.71.020(b), no required yard area in any zoning district may be utilized for required parking. Because the project proposal does not strictly comply with these requirements, the project would require a Planned Unit Development ("PUD") permit pursuant to Chapter 20.84 of the City's zoning code. A PUD permit is appropriate in this instance because the number of parking spaces proposed would be adequate for the proposed use due to the unique parking demands of a Home Depot home improvement store. As discussed in the May 2,2005 Parking Study performed by OKS and Associates (attached hereto), and as shown in the chart below, the parking ratios for both Option A and Option B of the proposed project are similar to the parking ratios that have been found to be sufficient for a number of Home Depot stores that have already been constructed in the Bay Area. As discussed in the Parking Study, the parking ratios that have been used in other comparable Home Depots have fully met customer demand for those stores, thus confirming that the number of parking spaces proposed in either Option A or Option B would serve all proposed uses as effectively as the standard number of spaces required by Chapter 20.74 of the City's zoning code., Furthermore, the PUD permit would allow the front yard setback to be modified so as to accommodate some of the proposed parking spaces within the area that would otherwise be designated as part of the front yard pursuant to Table 20.71.030 of the City's zoning code. Without this modification, fewer parking spaces could be accommodated within the project site due to space constraints. 1 During the times when seasonal sales were held, 29 spaces would be given up to accommodate the 8,000 square foot outdoor seasonal sale area, so only 461 spaces or 400 spaces, (depending on whether Option A or Option B was approved) would be available. 2 "Retail and General Commercial Uses" require one space for each 200 gross square feet of floor area, plus one for each delivery vehicle. The proposed store building itself measures 101,579 square feet, requiring 508 spaces while the proposed garden center measures 24,215 square feet, requiring 121 spaces. Please note that If the parking ratio for garden center area were one space per 1,000 square feet (as is often the requirement in other jurisdictions), then the proposed project would need only 532 spaces. The Home Depot PUD Application 5/1 1/06 pg. 3 of 4 location Size of Store Size of Garden Total Size No. Parking Parking Building Center Spaces Ratio Provided/ Required EI Cerrito 100,000 sf 29,590 sf 129,590 sf 439/ 500 3.38 spaces per 1,000 sf South San 101,579 sf 24,215 sf 125,794 sf 426/632 3.39 spaces Francisco per 1 ,000 sf (Proposed Project) - Option 8 South San 101,579 sf 24,215 sf 125,794 sf 490/ 632 3.90 spaces Francisco per 1,000 sf (Proposed Project) - Option A Colma 99,940 sf 13,196 sf 113,136 sf 444/500 3.92 spaces per 1 ,000 sf San Rafael 102,190 sf 22,180 sf 124,370 sf 538/511 4.00 spaces . per 1 ,000 sf Hayward 107,920 sf 23,928 sf 131 ,848 sf 533/444 4.04 spaces per 1,000 sf In light of this reasoning, the 490 and 426 parking space capacities depicted in the plans for Option A and Option 8, respectively, would be more than sufficient to meet customer demand generated by the proposed Home Depot, and should therefore be approved by the City. b. Proposed residential net densities (if applicable)- Not applicable c. Physical land alteration required by the development (i.e. grading, retaining walls, etc.) Minor land alteration is required by the development in that a short retaining wall along the eastern property line would be constructed as a barrier from the Union Pacific railroad. 5. Relation of the proposed PUD to the So~th San Francisco General Plan. The proposed PUD permit would enable Home Depot to construct its store, which in turn would help to implement many of the policies set forth in the City's General Plan and the East The Home Depot PUD Application 5/11/06 pg. 4 of 4 of 101 Area Plan (the applicable specific plan for the area in which the store would be located). The General Plan and East of 101 Area Plan policies that would be furthered by the proposed Home Depot project include: General Plan Policies · 2-G-2: Maintain a balanced land use program that provides opportunities for continued economic growth, and building intensities that reflect South San Francisco's prominent inner bay location and excellent regional access. · 3.5-G-1: Provide appropriate settings for a diverse range of non-residential uses. · 3.5-G-2: Direct and actively participate in shaping the design and urban character of the East of 101 area. · 3.5-1-3: Do not permit any residential uses in the East of 101 area. East of 101 Area Plan Policies · LU-4a: Uses allowed in the Planned Commercial category shall typically include retail uses (among other uses). · LU-13: No residential development shall occur in the East of 101 Area. · LU-24: Retail and personal services shall be encouraged throughout the area to serve the employees of the East of 101 Area. In addition, the building design and landscaping for the proposed store comply with many additional policies in the East of 101 Area Plan, including: DE-3, DE-13, DE-17, DE-21, DE- 24, DE-28, DE-29, DE-34, DE-38, DE-39, DE-52, DE-53 and DE-55. We welcome your comments and look forward to working with you on this project. Please call us if you need clarification or have any questions or concerns. Thank you. Sincerely, GREENBERG FARROW ARCHITECTURE INC. Caroline Shaw, Site Development Coordinator /I Cc: Leslie Marshall, Klaff Realty Greg George, The Home Depot David Murray, The Home Depot Paul Kawakami, Cassidy, Shimko, Dawson and Kawakami Debbie Kartiganer, Cassidy, Shimko, Dawson and Kawakami Brett Strohlein, WRG Design Frank Coda, GFA (file/ Planning) A PROFESSIONAL CORPORATION CASSIDY SHIMKO DAWSON KAWAKAMI Sender's e-mail address: DLK@CSDKLAW.COM May 12, 2006 Honorable Chair William E. Zemke and Members of the South San Francisco Planning Commission South San Francisco Planning Department 1660 Mission Street, Suite 500 San Francisco, CA 94103 Re: Proposed Home Depot Store at 900 Dubuque Avenue Dear Chair Zemke and Members of the South San Francisco Planning Commission: On behalf of Home Depot, we write to encourage you to recommend that the South San Francisco City Council (i) certify the Environmental Impact Report ("EIR") for Home Depot's proposed South San Francisco store ("Project") and (ii) approve the required entitlements (including a Use Permit, a Type C Sign Pennit and a Planned Unit Development Permit) for the Project itself at your May 18, 2006 meeting. The environmental review and project design processes for the Project have been comprehensive and very productive. This letter outlines: (a) the evolution and current status of the Project design.; (b) the key findings of the EIR; and (c) the economic impacts of the Project. We hope that it will be useful in demonstrating the benefits and strengths of the Project to you as you consider the Project on May 18. Proiect Design Design History On March 1,2005, Home Depot submitted an application to the City of South San Francisco ("City") to construct an approximately 101,272 square foot home improvement center with a 24,522 square foot outdoor garden center, for a total of 125,794 square feet of retail space. Parking was proposed to be provided on three levels (i.e., the ground floor and two parking decks) for a total of 634 parking spaces. On March 15, the City's Design. Review Board reviewed the Proj ect design, and approved it with certain parking and landscaping changes. These changes included the request that one of the parking decks be removed in order to improve the aesthetic appearance of the Project as a whole. 20 CALIFORNIA ST. SUITE 500, SAN FRANCISCO, CA 94111 TELEPHONE: (415) 788-2040 FACSIMilE: (415) 788.2039 Honorable President William E. Zemke and Members of the South San Francisco Planning Commission May 12, 2006 Page 2 of9 On May 5,2005, Home Depot submitted a revised application for the Project that incorporated the changes requested by the Design Review Board on March 15. The parking area included two parking levels (i.e., a ground level and one parking deck), which in total accommodated 426 parking spaces. On May 17, 2005, the Design Review Board reviewed the Project as revised by Home Depot, and approved it for submittal to the Planning Commission. On October 5, 2005, the Planning Commission and City Council held a joint study session (the "Joint Session") on the Project. At the Joint Session, agency representatives, community members and others provided a number of comments related to design, landscaping and traffic circulation issues. On Apri13, 2006, in response to issues, concerns and ideas raised by the Planning Commission and City Council during the Joint Session and by City staff at other times during the entitlements process, Home Depot submitted an amended application with a redesigned Project proposal that reflected the input received. Two versions of the revised design ("Option A" and "Option B") are now before you. They differ only in (i) the design of the parking deck that provides the second level of parking spaces and (ii) the placement of the elevators serving the second parking level. In Option A - the preferred option - the parking deck has been extended to abut the store building, resulting in the provision of 490 parking spaces. In Option B, the parking deck remains separated from the building by the drive aisle in front of the store, resulting in 429 parking spaces. The total retail square footage of the Project has not changed in either of the options, although the size of the store building has been slightly increased to 101,579 square feet and the size of the garden center has been slightly decreased to 24,215 square feet. Benefits of Current Project Design Option A and Option B both have significant advantages over the original Project design, especially with respect to parking, traffic circulation and overall appearance. In particular, Option A and Option B address the following suggestions made at the Joint Session: Landscaping. In response to requests for additional landscaping on the Project site, Home Depot has worked with its landscape architect to "green up" the parking area in particular. As a result, Options A and B propose additional ivy to climb the columns of the parking deck, thus creating a more inviting and decorative setting for the parking area beneath the deck. In addition, at City staffs request, Home Depot plans to add additional trellises or pergolas on the upper parking level to soften the aesthetic appearance of the Project from the street. Honorable President William E. Zemke and Members of the South San Francisco Planning Commission May 12,2006 Page 3 of9 Parking Spaces at Side I Back of Store Building. Home Depot has removed six of the eighteen parking spaces located at the eastern comer of the Project site in response to questions about the accessibility of that location. The reallocation of spaces in this area has freed up some of the area adjacent to storage and delivery facilities in order to provide maximum maneuverability for delivery and service vehicles. Furthermore, the twelve spaces that remain may be used by store employees so as to maximize the number of spaces in the front parking area that are available to customers. Encouraging Customers to Use Parking Deck. At the Joint Session, Home Depot was urged to develop ways to encourage its customers to drive up the ramp to the second level of parking rather than compete for spaces on the ground parking level. In response, Home Depot has redesigned the circulation patterns in the ground floor parking area so that customers using the northernmost driveway would be led directly to the ramp to the second parking level. This revised layout makes it much easier and more inviting for customers to access and use the second parking level. Exterior Lighting. At the Joint Session there was a request that the exterior lights of the Project be decorative and of good quality. "While Home Depot has not yet specified the exact exterior lighting fixtures for the Project, we remain committed to using high-quality fixtures. Any such fixtures would of course be subject to approval by City staff. While both Option A and Option B reflect input received regarding landscaping, parking and lighting, Option A additionally would address the suggestion made at the Joint Session that a ''bridge'' lead from the top parking level to the Store. In Option A, the parking deck would extend over the drive aisle and pick-up area in front of the store to abut the store building itself, with access elevators located between the entry and exit at the store. 1 In addition to the obvious benefit of providing over fifty additional parking spaces, the placement of the elevators in Option A wolild greatly reduce conflicts between cars and pedestrians relative to Option B because customers parked on t.he top level would not have to cross a drive aisle to go between the store and the elevators. Parking Availability While shape of the Project site prevents Option A and Option B from accommodating the number of parking spaces required pursuant to the City's Zoning Ordinance,2 the number of parking spaces proposed under either option would be adequate for the proposed use, based on a study of the particular parking demands of Home Depot home improvement stores. As 1 Home Depot investigated the possibility of including rooftop parking in the Project but concluded that this would be infeasible due to high costs and maintenance issues. 2 Section 20.74.060 of the City's Zoning Code, "Retail and General Commercial Uses" require one space for each 200 gross square feet offioor area (including garden center). The Project therefore would require 629 spaces pursuant to City code. If the parking ratio for garden center area were one space per 1,000 square feet (as is often the requirement in other jurisdictions), then the Project would need only 532 spaces. Honorable President William E. Zemke and Members of the South San Francisco Planning Commission May 12, 2006 Page 4 of9 discussed in the May 2, 2005 Parking Study performed by DKS and Associates that was previously submitted to the City, based on the parking ratios provided at three other Bay Area stores, the Project would require 304 parking spaces. Option A exceeds this number by 186 spaces, and Option B exceeds this number by 125 spaces. The Parking Study shows that the parking ratios provided at the three comparable Home Depots have fully met customer demand for those stores, thus confirming that the number of parking spaces proposed here would serve the proposed use as effectively as the standard number of spaces required by Chapter 20.74 of the City's Zoning Ordinance. At the Joint Session, Home Depot was requested to consider implementing angled, as opposed to perpendicular, parking spaces. Home Depot's consultants investigated this proposal but found that providing slanted parking spaces would significantly decrease the number of spaces that the Project site could accommodate. Further, Home Depot's consultants detennined that the most efficient site circulation plans could not be accomplished using slanted parking spaces. Options A and B therefore reflect the standard perpendicular parking space configuration to maximize parking accessibility and site traffic maneuverability. Comparison to Colma Store Some participants in the Joint Session emphasized the importance of ensuring that site operations for the Project would be more efficient and less congested than those at the existing Home Depot store in Colma. Firstly, it should be noted that the Project - in conjunction with the new Daly City Home Depot and the Home Depot that has been approved for San Francisco - would ensure that regional demand for home improvement products would be more evenly distributed among stores, thus alleviating conditions at the Colma store and ensuring that conditions would remain manageable at the Project. Secondly, even if this were not the case, the site layout and operations for the Colma store may be distinguished from the Project in many ways, including as follows: · Site Access. The Colma store has one way in and one way out, and that driveway must be shared by employees, customers and delivery trucks and leads directly to the front of the store. By contrast, Options A and B propose three entrance/exit points, which would allow traffic to circulate more freely and would relieve traffic pressure from any single point of ingress/egress. · Ramp to Parking Deck. The ramp to the parking deck at the Colma store is located at the opposite end of the store's parking area relative to the parking area entrance. In order to access the ramp, Colma customers must proceed along a long drive aisle and then cross through the busy loading area in front of the store itself. The Project's circulation plan, on the other hand, facilitates customer movement to the upper parking level (especially when drivers enter the site at its northernmost driveway); in Honorable President William E. Zemke and Members of the South San Francisco Planning Commission May 12,2006 Page 5 of9 addition, the drive aisle to the ramp is much shorter than in Colma and does not cross in front of the store building. · Elevators to Parking Deck. In Colma, the elevator to the upper level of the parking deck is located across the drive aisle and pick-up zone from the store. Colma customers must therefore cross through traffic in order to walk between the elevator and the store. By contrast, Option A eliminates the need to cross through traffic, as the elevators to the parking deck would be placed directly adjacent to the front of the store building. Although Option B still would require pedestrians to walk across the front drive aisle of the store, the site circulation is such that far fewer vehicles would need to travel along that path to access parking spaces; in addition, the pedestrian path would be wide and clearly marked. · Elevator Operation. The Colma store has one elevator, which some commenters at the Joint Session remarked was always out of service and therefore was a deterrent to using the parking deck. In fact, maintenance records indicate that the elevator was out of service only nine times in 2005 (less than once a month). In addition, the Project by contrast would have two elevators, so even if one of the elevators at the Project breaks down, the other elevator would be available to ensure uninterrupted service to the second parking level. Furthermore, the elevator at Colma is a small single-door, hydraulic elevator, where as the Project elevator would be large, double-door, cable- type elevators. · Pallet Storage. As was pointed out during the Joint Session, some of the parking spaces and drive aisles at the Colma store often are blocked by discarded pallets, which impede site circulation and can be unsightly. This situation would not occur at the proposed South San Francisco store. Home Depot's newer stores (including the Project) include an enclosed area for pallet storage so that discarded pallets may be gathered in one place, out of sight, once emptied. This would keep Project parking spaces and drive aisles free for their intended use by vehicles. As you can see, the design of the Project improves upon the design used for the Colma store for site circulation and operation. As a result, the Project would be much more pedestrian- and vehicle-friendly than the Colma store. Process and Substance of the EIR On January 31, 2006, the South San Francisco Planning Department published a draft focused environmental impact report ("DEIR") for the proposed Project. On March 2,2006, the Planning Commission held a public hearing to receive comments on the DEIR. On May 5,2006, the Department issued a comment entitled "Final Focused Environmental Impact Report" which responded in detail to each written and oral comment received during the public comment period on the DEIR. Together with the DEIR, this document constitutes the Honorable President William E. Zemke and Members of the South San Francisco Planning Commission May l2~ 2006 Page 6 of9 "Final EIR" (also referred to as the "EIR") for which we encourage you to recommend certification on May 18. The EIR contains a thorough and comprehensive analysis of the Project, including in its revised state as Option A or Option B. Either of these options would result in the same impacts as those identified in the EIR for the Project as originally designed, and the impacts of the Project as now proposed fall within the range of impacts studied in the EIR. The EIR concluded that, with mitigation measures~ the only significant and unavoidable impacts of the Project would relate to the level of service and traffic queuing at one intersection in both 2006 and 2020 and to traffic queuing at a second intersection in 2020, as follows: · The level of service (PM peak hour) and queuing capacity of certain lanes (AM and PM peak hours) at the Oyster Point BoulevardlDubuque AvenuelU.S. 101 Northbound On-Ramp intersection in 2006; · The level of service (PM peak hour) and queuing capacity of certain lanes (AM and PM peak hours) at the Oyster Point Boulevard/Dubuque Avenue/U.S. 101 Northbound On-Ramp intersection in 2020 (in conjunction with projected future growth and development); and · The queuing capacity of certain lanes (AM and PM peak hours) at the Bayshore Boulevard/Sister Cities Boulevard/Oyster Point Boulevard! Airport Boulevard intersection in 2020 (in conjunction with projected future growth and development). It is important to note that the traffic study prepared for the ErR, like all good traffic studies, is based on certain ''worst case" assumptions~ which result in a very conservative scenario for analysis. This is an effective method to use in preparing the EIR, as it leads to the identification of every traffic impact that could possibly occur, but in reality the traffic impacts of the Project would likely be far less intense. The three primary "worst case" assumptions that were incorporated into the EIR analysis are as follows: · The study increased the Project's average trip generation rates by 25% "in order to provide a safety factor for impact analysis." Thus, the impacts to affected intersections have been substantially inflated as compared to impacts based on trip generation rates recommended by the Institute of Transportation Engineers (Trip Generation, 7th Edition, 2003). · The study projected zero "diverted linked trip capture" or "pass-by trips," i.e., vehicles that would still travel past the site even if the store did not exist, for the Project during the AM peak: hour and only a minor level of such trips during the PM peak hour. In contrast, the Institute of Traffic Engineers Honorable President William E. Zemke and Members of the South San Francisco Planning Commission May 12,2006 Page 7 of9 Manual allows for up to 40% of the trips to home improvement stores to be counted as pass-by trips, and based on Home Depot's experience with other stores in similar types of locations, we anticipate at least 10% to 15% of the AM and PM peak hour trips to the Project would be pass-by trips. Therefore, the number of trips that the Project would actually generate is likely to be at least 10% to 15% lower than the number of trips on which the EIR analysis is based, and the actual traffic impacts of the Project would be correspondingly reduced. · The study assumed that an average of 30% of the Project's AM and PM peak hour trips would come from the San FranciscolBrisbane area. In reality, this number would likely be much lower due to demand from those areas being captured by the new Home Depot in Daly City and the proposed Home Depot in San Francisco that were not accounted for in the study. Therefore, traffic impacts resulting from traffic to and from areas to the north of the Project site (for instance, impacts at the intersections of Bay shore Boulevard/Sister Cities Boulevard/Oyster Point Boulevard! Airport Boulevard and Oyster Point Boulevard/Dubuque AvenuelU.S. 101 Northbound On-Ramp) are likely to be less than analyzed in the EIR. Therefore, because of the conservative nature of the analytical approaches selected, the Project impacts likely are overstated. Even if in reality Project traffic equaled the "worst case" scenario, the level of service at only one intersection would be significantly degraded, and queuing would exceed capacity at only one intersection in 2006, and at only two intersections in 2020. Economic Impacts of Project In November 2005, CBRE Richard Ellis Consulting / Sedway Group ("Sedway") produced an economic impact report (the "Sedway Report") that detailed the potential economic impacts of the Project. The Sedway Report, which is attached to the staffreport furnished to you for the Project, stated that the Project could earn as much as $53.1 million in sales in 2008, of which approximately $44.1 million would likely represent sales that would otherwise be lost to retailers outside the City - most significantly the Home Depot stores in Colma and San Mateo, and possibly the Lowe's store in San Bruno. Sedway Report p. 18. The Sedway Report predicted that, in a worst-case scenario (i.e., where each dollar earned by Home Depot in a particular sales category is a dollar lost by existing retailers within the City), City retailers would experience no loss in home furnishings and appliance sales, and only approximately 6.6% of their building materials sales.3 Sedway Report, p. 13. In total, the 3 Sedway's report noted that a substantial amount of garden supplies sales could be diverted from existing retailers in the City, but predicted that in reality the impact on such retailers would be much lower due to the fact that many of the garden supply stores in the City are highly specialized and sell products that would not be available at the Project. See discussion, Sedway Report pp. 14-15. Honorable President William E. Zemke and Members of the South San Francisco Planning Commission May 12,2006 Page 8 of9 Sedway Report estimated that in the worst case scenario the maximum sales diverted from City retailers would represent only 7.4% of the estimated combined total home furnishings and appliance, building materials, and garden supplies sales in the City in 2008. Sedway Report, p. 14. The Sedway Report also stated that any potential sales losses would likely lessen over time as the City's population grows. Sedway Report, p. 15. Due to a variety of factors, including the unavailability of proprietary store data, the Sedway Report was unable to specifically identify which stores would be at risk oflosing business if its worst-case scenario were realized. It did, however, specifically state that South City Ace Hardware and Lumber was not likely to be substantially affected by the Project, due among other things to its presence as "an established market leader" with a "loyal clientele." Sedway Report pp.18-19. The Sedway Report also noted that Grand Avenue True Value Hardware and Sporting Goods would be unlikely to be materially impacted by the Project, since it serves primarily convenience-oriented shoppers looking for a few items in a quick trip to the store; this type of sales model is generally not seen as being in direct competition with large format stores such as the Project. Sedway Report p. 19. Furthermore, the Sedway Report suggested that there could be factors that could lower the potential sales losses and even increase sales for these and other existing stores, including increased specialization by other businesses in products not carried by Home Depot, or enhanced marketing activities. Sedway Report, pp. 15-16. Home Depot's own experience confirms that many smaller hardware and building supply stores actually benefit from close proximity to a Home Depot; we have attached as Exhibit A just a few of the many newspaper articles from areas throughout the country that highlight examples of this phenomenon. Conclusion We hope that you find this letter to be informative and useful as you consider the Project. As you can see, the Project has undergone rigorous CEQA review, which has concluded that it would have minimal impacts on the environment. The design of the Project has also been scrutinized and refined in response to both environmental review and public input. The Project, as revised, responds to questions and reflects suggestions and ideas voiced by Commissioners, staff and others. It would also have a more pleasing appearance, decrease traffic impacts and facilitate pedestrian circulation in the area. We are confident that, upon consideration of the thoroughness of the EIR and all of the beneficial aspects of the Project, you will recommend that the City Council certify the EIR and approve the Project. Honorable President William E. Zemke and Members of the South San Francisco Planning Commission May 12, 2006 Page 9 of9 Thank you for your consideration. Should you have any questions regarding any aspect of the Project in advance of the May 18 hearing, please feel free to contact me or Greg George, the Real Estate Manager responsible for the Project. I may be reached at (415) 788-2040, and Greg may be reached at (714) 940-3601. Sincerely, 'DkJ L ~ Deborah 1. Kartiganer cc: Susan Kalkin - Interim Planning Director Steve Carlson - Senior Planner Ann J erhoff - Home Depot Greg George - Home Depot Frank Coda - Greenberg Farrow Caroline Shaw - Greenberg Farrow Mike Pacelli - Bay Relations EXHIBIT A Newspaper Articles Regarding Positive Economic Impacts of Home Depot Stores BUSINESS Monday [ht ]:Jatriat. Irbgtr November 19, 2001 . Small hardware store is thriving Cunys feared Home Depot's amvaJ By KEmI RmAN For The. Paino! I.td!)er strec't neglects, S\ltb as SJ>C"ialty roarings, fall,( n.njsh~, custom and hard'Il>.iUld fasteners for contrac- QUINCY - \Y'h~ Home Depot tors and screen repair, Sean CUl'l'}' opened jusl around the comer lTom Solid. Curry Ace Hal'l~h"are- on Ccpeland Bob Curry said the store had one SITeel abpul nine )-em ago. second- of liS busiest monrhs in Octobet, He gt'nerarion O\l,T1er Bob Curry feared annbules the fact thaI his business Ihe worsl. haS thrived \\hile other family- "We were petrified when Home' O\oIo1led hardware $lares have \l,ilted Depot came in." said Curry. "But it's under Ihe l!:treal of the home im. ended up helping us, nOI huning p~'emenl giants 10 outstariding us." customer 5e""ice. Business is so ~n8 thaI Curry "We've got about a dozen people has fmaJized plans to nearly double who work here al various times and the size of his shop, which his fa- lhey an go the extra mile:' Bob Cw'. ther, Paul. founded in \'i4S. ry said. "We'w: gal a greal n:pu!a. The 2.80Q...square.footexpansion, rion for jumping through hoops. If for ,-,,'hieD permits have been issued someone comes in and om1s some- and was inilially slated to start this thing. OUt mission is 10 gel il for fall, will now probably get Wlder them. If that me3llS we hJ>,'e 10 call \.V;l)' nexl June. after the busy spring Home Depot, Ihat'S whal ....~~" do:' gtuden season has en~d. Another reason m:my hardware Curry ~id some details of the e~- Stores failed. Bob Cuny said. is lh:lI piUlSion are being k~1 under wl'3ps, they "relJlained old. fashioned," bUI s:lid thai Or\( are::r o(the business 1';0 one c:.aa accuse dl~ Cur'r)'s of Ih:ll n~s llddirional space is Ih~ Ih:ll. The l'YoO are among the co- paint depamnenl. founders of HomeTO\I.n$lores.rom. "Some days We' trip Q\.'~ each :l \Veb sile thai sells hOlm improve- oth~ when we leave here, iI's so ment productS. "W~ didn'l STZf old- busy," he said: fashioned," Bob Curry said. Curry's SOD .~ said the slore Sean Curry said the expansion W:l.S the fll'Sl Be-njamin Moore paint project will L1ke about 18 weeks. As dealer south of Boslon and he poinl' pan of tJ:le projC'C1. tlie Curry's pur- ed Oul Ih::rt ils locarion jusl off 1.93 cb~sed a building 1l(':'l.1 door that \I, ill m3.kes if a com enienl Clj:uon. be used (or I::n~rnry slorage dur- The slore :11$0 roc~ on niches ing the proJet:1 :lJId then !':lZ~ for thlll the big-box store dOYoll the :lddltional p:ulung. t .; :\l o1ll BUS ltH SS r Hardware stores unfazed .bY\tt_<il.!1e Depo\ ny l\1arlen~ Urso SIa11 ""u,., Home Orpot's familiar orange ~lunl!lr could become a romll/1.~ble presence at Ule Chartlt~rs Vallry Shopping C('nler. bUI some local com. pl'tltor~ are oot intimidated by Ull' hardware giant "At hut II WIll hurl us iw><'ause If is a noYelty, but we h.1 VI a 101 of items they don't slCX'k,. said Jason Sarasnick, CO-ilwner or Satasnick Hardware in BridgeVllle. Sarasnick is confident that his loyal ruslDmers will conlin. ue to buy ~ialt" plumbUlg Ilpms, bolts, scr~n and win- dow supplies and olher mer- chandise al his slDre. He says the Home Depol will eventual. ly bring ml'lre business his way, .It will be an asscl. It wiIJ draw people to the area: Regardless ot how local rct:lllers leel. the Collier 1Iome l>l!pol is due to open on Thunday,5fopl. 19, The 116.593 ~I)uare. foot slore includes a IDol renlOll center, a garden cenlt'r. <In expanded appliance cenler lInd kilchen and bath dl'slgn place. . The slore will employ 16S j*ople. Mosl WJJJ be hired from the Ioc~1 commuruly. A hiring IrallC'!' "''liS on - Slit' beguvung em Monday. Sarasnirk. a fourlb genera- 1I1In IlWner. says his lirsl job In Ihe hardware bus mess was c a tTyUIg boxes ror hlS fa I her when he ",'as in the .sevenlh ~nlde. lie prides himsrU on provid- Ing Ihe right product :lnd knCl\l'ledge. somelhmg he (' I:llms his la rgl'r competitor caMot always do. -You have to find your niche in this basUless. . When Sears Hardware n~ned al Greal Southern Shopping Center it impacted his business nt'gl1ljyeJy lor abou: SIX months. Now he has more bUSlIltsS because of il. SaraSlUC'k said a customer who rectnlly bought o'l faucet OIl Sears Hardware, ended up buying $40 worth 01 acces. sorles :It his stoR. The Sarunick's have also managed ID combat the Home Depot's \'Olwne buying advao. Llgt' by uniting with other sma U hardware stores to fonn Ihe True .Value Cooperative huYlIlg group. Thn)ugh 1M c\)o .. . ". .' .'-J , L Monlo.~ifle, ~ 4 BridgaviIla Hsws SIa' '.n.UVl'. M'I A,., IUi!Obetd'l Wl,]. AUG 14, c';le~ rfCJJ' 11!!1!l: JIII/ I~ Itl V ell!r ; " U2 [lLJ I.i~ 1 z. '-'- ~n' oS ~ r LJ..!rl \'I: \ JOE SARASNICK organizes the shelves al family- owned Sarasnlck Hardware. Photo by (Avid PiflCllOt op, ils 8,000 mt'mbers can gel belter plices by making joinl pW'cllasu 'Sarasnick said hardware glilnl.S liJle Home Depot and Lowu .rna~e .I.beic.. prolit on "blind ilems. " A pi~ at 1M larger slDres might be cheaper but (il tings are threoe tUnu as much as lhose at Sarasnick Hardware. He wams thaI "buyers beware" when purchasing trivial items. CustorneD Iypically look Cor a good price on paint or a S\a. pIe gun but as a mailer 0( COh. venitnee wiU buy Hems Uke rollers and s\aples to completll a . project without comparing prices. Sarawck said his prices Cor sevtral smaU:ilems are lower. His roDer Covers are S4.98 and theirs "are $2 95 Ke}'S are t\ll foT'" SI.lO while Home Depot charges $1.89. BUI Home Depot representa. tives say their prices can'l be beat. . "J! II smaller re~iJ competi- lor tries 10 compete with us in prieing they will lose," said Shelley Scbwnaker, spokesman for Home Depot in AUanla, II a rustomer finds a Iowe: pritt' on 11ft ilem the company will match it. "We will create competition among reLaiJers and drive prices down. " . But Shwnaker said smaller stores compele in other ways. '1[ someone is 1ht loyal cus- tomt'r DC a small retailer. nil one- win pry thaI cUSlomer away. " Ed Applebaum. owner of Carnegie Supply, said his 15,000 square foot store nffen; conven. ience. 'Cuslomers can get the prodUCI and Ihen gel the (heck) out 01 here and gt't the job done. " Schumaker sugges/.s thaI small retailers provide services and producl lines other than those offered alMome Depot. Applebaum has access 10 items thai gi~t relaileD doil'l have, bu( said there is also quile a bit oC overlap. "We have the ability 10 get almost anylhlllg." . Like Sarasnick, Applebaum btlongs to a cooperalive oJ smaDer reLail stores. The Ace Hardware co-op gives him more buying pcIWer. Both he and Saruniclc haw a mix or rerail and commercial business. They also agree thai the Ace and lhle Value stores have enjoyed a growth spW't in the pasl )'ear. But Applebaum allributes the success he and his ralller MAlt. 83, have enjoyed for the past 60 years to their excellent customer servitt. They ba\'e 15 laJDwledgcablll emplo)'ees. "We wiU continue to do whal we do now, thal is have some- on. on Iht Door C:USlomers c.arr""' lalk to.' . __-- .. . .....-- ............... ,.. ............ "'1'''',J'IW>'~"'.''I''''.,"""I&''''''I5'''UUII Ln uus:rllc...n......... Ucc. uW_Llue,y _toolll;')O:lf.:JO loc.UOC' 'J'Pt11: J ClIO E:J Midwest News Article 8 R&tum to Headlines Business; B Rod Vougbt, maaager ofDarnmao's newest store in Macomb Township, helps customers with patio furniture, a service tbat keeps tbe hardware competitive. Fainily.run hardware staves off francbises Neal Haldane Fonnat to PrlnVSave 03/2812002 . The Detroit News Page 02 (c) Copyright 2002, The Detroit News. All Rights Reserved. MADISON HElGHTS -- Damman Hardware survived when Builder.s Square and Home Quarters entered and left the market. And Rick Da.mman. president and CEO, has the company moving forward as it competes against Lowe's and Home Depot. The company's newest 22,OOO-square-foot store just opeoed in Macomb Township, replacing a smaller outfet in Warren. "We've had competition in varying forms all along," said Damman, whose grandfather opened the first store in Detroit in ] 920. . But the competition has become stiff. Lowe's has 21 home improvement warehouses in Michigan with four more under construction as the company embarks on its most ambitious expansion program in its history. Lowes entered Michigan in J994. Home Depot has opened five Michigan locations since October and has 53 stores in the state. The company entered Michigan in tbe mid-1990s'and plans t!J open three new stores this summer, including oDem Auburn Hills. . Not to be outdone, Damman has been busy the last few'years increasing the size of its stores in Grosse Poinle, Rochester and Farmington, and opening its oewMacomb Township store; "Our business mission is simple, " said Damman about his 17-store chain. "Damma.ci Hardware is a hardware retailer focusing on coo1fenience and customer service." The customer base is 96 percent homeowners and halfofsboppers are women, he said. The larger chains have Jured away members of the building trades, wbo are drawn to tbe selection of tools, Damman acknowledged. "The professional is probably where we're impacted the most, but we just don't have the room." he said. ') Instead, the company is focusing on outfitting the home. "People are gravitating toward their homes and we will be carrying more home decor," he said. "We do a heck ofa good.grill business. We a1SQ assemble and deliver grills for free. We really drive the .,f,2 0312912002 1:21 AM ... -- .....,1".., .""''-'' customer.semce aspect. n That customer service comes from a staff of250 associates, who have a stake in the firm through an employee stock plan, De said. Damman also credits the company's inventory control system that. lets personnel track "tbe profitability of each item at each store." Stores such as Damman Hardware have been able to Sl:lcceed by knowing the market, said EDen Hackney of the National Retail Hardware Association. "You have to look at your market aDd figure out what your customers want and need," Hackney said. "Sometimes, it's service. Sometimes it's a convenienllocalion. Sometimes it's a niche product. n Damman Hardware · Headquarters: Madison Heights · Employees: 475 .. · Started: ] 920 in Detroit · Stores: 17 ... Information: WWW.dammanhardwar~c.om Return to Headlines furmat to Print/Save Copyright e 2000 Dow Jones & Company; Inc. All Rights ReselVed. 2 03129nOO2 !:29 I ,:. . . . ~ . . . ., .. . . .1,), . . . . . . . . . . . . .. '0. . . . . . . .. 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Gl...:o:-",o. <~~~~~~2~~-~O~~_c~ 0 ~~-Q--u~5- ~~~~t!~~~::~~3~~l~~::~~~~~a~~~~ 6. o o o N N -l ." ~ Co <: ~ >. III III Li III ., 3 III Z ....... III ,Ill III Li I).. ~ ~ c:l I).. Li ::l .t:> III ~ ... Rtlading, PA Eagle Rndlng 1.1.1 ''I. Sanday SUN 101,lOD FEe 13, 2~ae illlllli II!III/ ! 11111 !!lllll/flrlllllll rlnlriJrn N4820 L!JL!lL!lU:'] /'.1/ \ \ I LJ I'f'n.., DON SP~TZ David learns to get along with Goliath I've often championed U1e cause of the smaller shops trying to stay in business after tbe big chain stores come to town. It can be done. I've said. ifthe shop finds its niche and customers can see how it differs frolIl the big boxes. Now comes a good example of a smaller competitor - A.D. Moyer Lum- ber & Hardware -that's not only still standing, but had itS best sales year ever in 1999 despite a ~~ Depot opening up directly ac'ross the street !"rom its Pottstown facility. The results surprised even compa- ny owners Scott and Terry Moyer, and m:1rketing director ~on Schock: de. spite the four years of preparation the com pany undertook to get ready for a battle it knew was coming. "We were cautiously optimistic," Schock said. "We were relatively con- fident we waul d stand our ground, We knew we would lose some of the do-it- yourselfers. but we figured we would make it up on the contractor end. "But we did not at all think.. , we would have our best ~'ear ~"'er in 60 years of being in business."' What did .-\. D, ~[oyer do~ The company began preparing In 1995, Scboclt said. Althougo lhere were no plans Cor a home improve- ment giant to move into toe area then, the company knew someday it would face a Lowe's or Home Depot. Schock said he spent months re- searching how other independent lumber dealers reacted when faced with the same situation. He compiled a list of companies of similar size and product mi~ and interviewed them, by telepbo.ne aDd &omail, to se~ wl1at they , did nglit, and wbat they did Wl'on;. Schock's report led ma.nileinent to plan' what A.D. Moyer would do.. But the plan would have be~n'futile , without a buy-in by the companies' 110 employees among its three facili- ties in Gilbertsville, Pottstown and near Birdsboro. "We are fortunate to bave a very tight.knit team of employees here who care about this company as if it were their own," Scott Moyer said_ -'None of the cbanies that our man- agement team proposed would bave mattered Or even beeD poSsible if the , employees hadn't believed.in th~" company or the plan themselves;" . A,D. Moyer bad picked up'more do.it.yourself customers a year earli- er when Rickel Home Centers closed, but believed it would lose some oClhat crowd to Home Depot. It decided to focus more on its best cus- tomers - the contractors to whom it bad been catering far years. Thus, it bired more outside sales staff and invested in specialized builder. friendly equipment, such as a knuckle-boom truck (for better placement whea it unloads its deliv- eries) and a computerized estimating system. , And it decided not to compete with Home Depot on the same brands. 'Instead, it changed to other brands oC products and tools aimed at professional builders. "We're not trying to be all things to all people," Schock said. "The places that went out of business (tried) to compete 00 the price issue," It also ramped up its specialty ser- vices such as custom millwork and custo~ ordering. And it ad~Pt~d a slo- gan - "n's all about quality -. ~at Schock claims is not an advertiSing gimmick but the company's way of doing business and choosing products. The 'plan worked: Tbe builders car- ried the company, but it didn't lose ~s lWlCh of the do-it-yourself crowd as It thought it would, Schock said. A;nd eVeD Home Depot belped, by l~a~ directly across the street and bnngmg customers loA-D. Moyer's eDd.oftowa. "We are mucq better off\Vlth them bemg' across the street than across town;" Schock said. '''We've found that their existence actually has brought us more customers ill some depart. ments.than we had before." 'But be aCkn,owledges the battle isn't over. ' "We've got to change OD the fly; we have to stay' on our toes and change things as the business cbanges" and product or tool lines don't move, he ,said. ''We're more co~t oftbat ~ow , than we inay have been In !.be past . . Don Spatz is b1.I3iJtU$ editor of lhe 'Be. EtLglt and' Re~ing Times. To com1JU1'l.t, call E~u Lmk at ~1()'376- 6000 category 3010. Or t-nuul us at ~tadingeagle.com INC. BOllon. MA SEMI-MONTHLY 784,967 i I I I 111111 iillllH 1111111111111111111111111 i nrnPlftl 1'113890 , UlLYlIIUhuss CLI",NOS SEP 1999 :-:' 'Reports of" my death...' .!.Arm cantinUtd 10 pallr in in resfxmJe .to our 2Oth-annivmary iuut. irKluding this ~ jrr1I1I a busi7W.S (JIJIrW UlM 'lrSmted th4 ! par, oj our. timt lint ("In Our Timer I I 979-99~) tlIIIl clI1f1fI~1Id the riJJ: o/nup rrtQiltts sUlk QJ HOfM Dq>ot ot the e:rpmu oj 1II01fHJruJ.pop t>pmJlitmJ. I.,: ..' ~ I,.. I I found it im~re5ting 10 read aboul my' apparently imminent demise in your 20th.anniversary issue (in -Die. Cate'; gory. Di~n. We starled our hardware slore one year beCore Home Depot's rounding a~d have managed 10 grow by a faclor or 40' d1-Jring the put 22 years. in spite of haYing lhe familiar orange facade within rave mil~s of either side: of our localio.n. We represent the mom- a-nd.pop operation that )'ou describe. BUI as me~.bers. and owners of a TruScrve hardware coope~tive thaI last y~ar sold $4.S billion in hardware al wholesale, we hardly see ourselvC$ as gri~l ror the bankruptcy mill. In fact, we r~1 Ihat we are the nimble competitor that !'O~ often write abouI, who can feel I an~ react 'quickly 10 Ihe n(t'ds of our customers. While! 770 is an imprtssivC' . number of slores, there arc more .than I 8.000 nores in our co-op counrrywide. ! and our co-op represenr.s only one of three major hardware co,ops in the markelpI2C't. Whal really struck me in that issue was the Editor's NOI~ wIxing eloquent about the birth of Sail and ultimal/:ly of Inr. as a result of its Counder's early fail- lire hilh a sehol)1 on :\ sailboat. It muSl be discouraging 10 see Chill effort doomed by the emergence of publish. ing behemoths such as Time Warner. I fs otMous to everyone that there will be no room for a publication like yours among companies that'dominate the publishing :md cmlertainmenl world. 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E-t ':A ~ ~ ~ ... g .....c '"t:S ~ J.. en ~ == ~ .. . ~/ c: 10 .~ 0 ; i-; C ..cl-- ~% ;: ..-.. i ~ ---. ~~ i~ ~ ::.ei ~ SSE!! ~ ..::. ~~ t. '!I,.' ~\v'" \~. '";''' \,)\ oJ'" ~Il ,\11\'<\ )\l \' \l ' oU~' . W,th local' "( In Mnh~8an Lake. New Rocht. We5t NYllCk and Danbury, one might lhlnk Ihal Heme Depot has monopolized home .mprovemenl In lhe Westchester au.. But tom S~sa. lhe assi$lanl SIore manlg~r al lhe Danbury Home Depol 5;lId Ihal docsn'l ha\'e 10 be lh,c,cas~ (or small hardware stores. "You'calfbe a mom and pOp oUllit 'cau~ you can do things a big store can'l do. There's enou&h clientele OUI Ihere for t\fery" one. you jusl necd 10 chanllc. Home Depol's been around for 20 ynrs. and iI's changed,'; il,lId. in fael. flame DepOl llasn'l Nn' small, local Ilardware slores 1010 the ~round. According 10 hardware slore managers in MOllnl I( ISCO, I.cwIsboro and Armonk. Iheir Slores ale SIIII successful. "We've chanlled around how w~ do IllIngs," said Chuck Vroman.!he rnan. Iger III MI., ,Kts.co Supply. "'Vk 10,",- . ered priCtS. Whal we normally sell W~olclsllle, we '.re' selling 10 cus" lomers." . 'Mike Levinlon, the mllnager II Lewisbofo)alnl and'Hardware. said "1 gue~s, we lose the larBe dollar IhingS" '"_ ,~..",......H"", where, ,p,:ople shop Ihe. pritl:," BUI Armonk' Hardware when if climes 10 leu C'xpensive ilems tb~nlift'ercnce between a Home Dep~ ,arid. his oWn, hardware store is mini- mal, praclically pennie$. He said Ibal local residetlls shop ror smaller, inex- pensive items where il'S convenient and COUneOlJ$, so hc,s limiled his sale ,.of larser equipmenl ilild broughl in new lines. DeMis BuonOl:ore. the owner of Ibe Annonlc' HlI'dware Company, high. lights Ihe advanlages 10 his srore. "We are very councous and 'Very helpful, whereas Ihl: big chains aren't." He also said, "I'm vel)' local. I know all the people here in 10wn." While H,9MC DcpOI has chaU~nged small, locally-owned' stores in the ,s~mc way Ahal StarbUcks. The Gap, and Barnes & Noble have challengl:d 'lIlCir Ioc:al equivalents,lM ImpaCl has. n't been all nelalive. As Dennis R9S3SCI, one of Ihe slore ',millla~frs althe M~Sln Lake Home Dcpol Slid. "I( YOU. like care of YOllr customers. your customers wiU come back 10 you. If you give them'reason 10 shop elsewhere, they will." ." .,. mg On The wB\V @(()}J~ ..- ('""rilll,..iJ from pllSt' ,8 bIn/dine malenals Home Depol does- n', sell. In juu one lrlp to Home Depol Ihe typical subulball home can be fully oUlfmed ....lIh allthc supplies required for blind'.. w~lIpaper. noor C'overinp. tll"'HUIC. cilbll~crs, grills: hl:atcn, plumbing. Jighling and electrical .....ork. A homeowner tould finish nol only the basemc-nr. bUl the kitchen, balh, lawn and garden. . And aOer all the- shopping is Ihrough, a homeowner has no need 10 ....0rT)' about an ovelSiltd load damag- ing Ihe car. They can Opl (0 have pur- chases delivered home. or packed inlo a Load 'N 00 lenlallmck, If lhey '!Vanl to learn mOre about rhe merchandise or ho,w 10 use their equipmcnl, they can lake a frel: prodlltt kno1Nledge or how.to cliniC. Jrlhcy are unhappy wilh · pUlchuc, thty can bring it back hls- . sic free. A 'cuslomer doesn't have 10 buy I 1001 al Home DepOI; he can rent. He doesn'l ha\~ 10 inslall an appli- Ince; ,he can lake advantage of an Inslallation service. . , , I~ Store No. Address: City: Aerial Map with Picture Key ~....."'., I - SS # 29070.2001 (old WC 0524) 900 Dubuque Avenue South San Francisco County: State: San Mateo California Zip: 94080 w I~ Store No. Address: City: Project Photographs SS # 29070.2001 (old WC 0524) 900 Dubuque Avenue South San Francisco *1 County: State: San Mateo California Zip: 94080 5) Chain link fence separates site from 4 Southern Pacific Rail lines and Mid-rise office bldgs. Of Gateway Business Park. l!i Store No. Address: City: Project Photographs SS # 29070.2001 (old we 0524) 900 Dubuque Avenue South San Francisco *1 County: State: San Mateo California Zip: 94080 10) Re-grading of existing loading dock and removal of retaining walls are required. 11) Site is at higher elevation than 1-101. View of 2- lane Dubuque Ave. and southbound 1-101 on ramp overpass is beyond. 12) View of narrow 2 lanes Dubuque Ave. from north entry. Blind spots for trucks and cars at this entry. I~ Store No. Address: City: Project Photographs SS if 29070.2001 (old WC 0524) 900 Dubuque Avenue South San Francisco *' County: State: 94080 San Mateo California Zip: 17) View of site from Gateway Business Park. 18) View of site from Gateway Business Park. Medium residential beyond 1-101 freeway on ram . I~ Store No. Address: City: Project Photographs SS # 29070.2001 (old WC 0524) 900 Dubuque Avenue South San Francisco *1 County: State: 94080 San Mateo California Zip: 21) Site is at low elevation of DUbuque Avenue. 1-101 intersection is approximately 5'-0" higher than northwest portion of site. PRELIMINARY TRANSPORTATION DEMAND MANAGEMENT PLAN FOR THE SOUTH SAN FRANCISCO HOME DEPOT RETAIL STORE May 2006 The Home Depot has applied to construct a home improvement store and adjoining garden center and nursery at 900 Dubuque Avenue in South San Francisco ("City"), California. The attached Preliminary Transportation Development Plan ("Plan") proposes a set of strategies, measures and incentives to encourage Home Depot's employees to walk, bicycle, use public transportation, carpool or use other alternatives to driving alone to the store. Because different employees will have different needs when it comes to alternative transportation methods, the Plan provides multiple options and incentives. The Plan is expected to reduce the number of employee peak- hour trips by approximately 102 trips, which equals 68% of the daily trips made by 150 employees (the number of employees expected to work at the store each day). 1 The Plan thus substantially exceeds the required minimum 28% alternative mode use by Home Depot's employees. The Plan is similar in many respects to the plan for the IKEA in East Palo Alto that was previously accepted as sufficient by the San Mateo County City and County Association of Governments ("CICAG"). In addition, it contains all of the mandatory elements set forth in the City's Zoning Code. The exact measures described in the Plan have been tailored to be as compatible as possible with the operational characteristics of the store, which will maximize the Plan's effectiveness. These measures also will be facilitated by the pedestrian- and bicycle-friendly characteristics of the site plan proposed for the project. Given these facts, as well as the fact that the Plan uses proven strategies and measures also used elsewhere in the Bay Area, Home Depot is confident that the Plan will not only achieve but surpass the City's required percentage goal for alternative mode use. 1 This calculation assumes that all store employees will travel to and from the store during the AM and PM peak hours, which will not be the case due to the multiple retail shifts scheduled each day. Thus, the Plan will likely reduce the number of peak-hour employee trips by an even greater percentage than estimated here. ~= ~o ~Eo-; Eo-;Il.l ~= ~~ ~= ~Eo-; ~~ Q~ ~~ ~o Q= -:0 ~u ~Il.l Eo-;~ <u ~~ ~~ ~Il.l Eo-;~ ~;;l ~~ as~ ~= ~Eo-; ~~ ~O ~~ 1.0 o o N ~ ::;E :... ~~ ..p >:S:... --. C ~ .... ~ .... ..C) C "- ~ ~ ~ ~ & :.::: ~ .;: ~ Q ~ ~ ..... :...... S, "'l::l :... ~ ~ .... 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Q,) rn rJ:l (l) ~ ctl.... rJ:l ~ Q,)~~oo S ~ -e ctl ] (l) a a E-<..9...:l:E 5 E-< t+-< o = o '.g rn c::.... ...... 5 'S e o~ U~ M = 1""1 = ~ ~ ~ ~ ~ ~ ~ !7.l ~ ~ ~ ~ ;;;J o == ~ -< ~ =-- ~ ~ o ~ ~ HOME DEPOT STORE ECONOMIC IMPACT AND URBAN DECAY ANALYSIS SOUTH SAN FRANCISCO, CALIFORNIA Prepared for: THE HOME DEPOT NOVEMBER 2005 CB RICHARD ELLIS CONSULTING Sedway Group CBRE CB RICHARD E~L1S CB RICHARD ELLIS CONSULTING Sedway Group CBRE CB RICHARD ELLIS November 21, 2005 Mr. Jeffrey Nichols The Home Depot Real Estate Department 3800 West Chapman Avenue Orange, CA 92868 Re: Economic Impact and Urban Decay or Deterioration Analysis of Planned South San Francisco Home Depot Store Dear Mr. Nichols: CBRE Consulting/Sedway Group is pleased to present this report regarding the proposed Home Depot Store in South San Francisco, California. The report summarizes our economic impact and urban decay or deterioration findings for the planned Home Depot Store. The Executive Summary of the report highlights key information and conclusions, fully documented in the body of the report. Please be aware that all of our analysis and conclusions are subject to the Assumptions and Limiting Conditions included at the end of this report. It has been a pleasure working with you on this project. Please let us know if you have any questions or additional needs. We will finalize our draft report upon receipt of comments from you and the City of South San Francisco. Sincerely, c,~~ ~___ ~kj M- Amy L. Herman, AICP Managing Director Kevi n Aug ust Consultant P:\2005\ 1005060 Home Depot South SF\Report\ 1 005060R05.doc CB RICHARD ELLIS CONSULTING Sedway Group CBRE CB RICHARD ELUS TABLE OF CONTENTS I. EXECUTIVE SUMMARy...... ................... .......... ....... ........ ......... .... ............ ......................... .... 1 INTRODUCTION ..... ..... ... ...... ........................... ................... ............................. ......... ............... 1 SUMMARY OF FINDINGS....................................................... ......................... ............................ 1 II. INTRODUCTION..................... .................................................................... ...................... 4 STUDY BACKGROUND .................... ...................... .............................................. ...................... 4 STUDY TASKS...... ......................... ....................................................................... .... ................ 4 STUDY RESOURCES ........ ......................... ........ ..,................. ..................................................... 5 REPORT ORGANIZATION............ .................. ....... ........................... ..................................... ...... 5 III. STORE SALES IMPACTS....................................................... ................ ............................... 6 STORE LOCATION AND SiZE................................ ............................................. .......... ..... ........... 6 PROJECTED HOME DEPOT STORE SALES.....................;................................................................. 6 NET NEW SALES TO THE PRIMARY MARKET AREA ............................................................................. 8 IMPLICATIONS FOR NET NEW SALES GENERATION................ ....................................... ............ ..... 12 IV. IMPACTS ON EXISTING PRIMARY MARKET AREA (CITY OF SOUTH SAN FRANCISCO) RETAILERS.. .......... ........... ..... ........................ ... .......... ....... ............. ....... ................ ........... .... 1 7 COMPETITIVE HOME IMPROVEMENT STORE SALES.......................................................................... 17 HOME DEPOT STORE IMPACTS......;.......... ...... ...... .................................... ...... .......... ...... ........... 18 V. CUMUlA T/VE IMPACTS....... ....... ....... ........................... ......... ..... ...... ........... .......... ........... 20 IDENTIFIED PROJECTS....................................................... ............................. .................. ....... 20 PRIMARY MARKET AREA CUMULATIVE SALES IMPACTS............ ........ ................................. ................. 20 VI. URBAN DECAY DETERMINATION .... ......... ......... ......... .......... ....... ....................... ............. 22 STUDY DEFINITION OF U RBAN DECAy........................................................................................ 22 ApPROACH TO DETERMINING URBAN DECAY POTENTIAL ................................................................22 RETAILER DEMAND IN THE PRIMARY MARKET AREA (CITY OF SOUTH SAN FRANCISCO) ........................... 22 URBAN DECAY CONCLUSION .............................................. ........................... ................... ...... 23 ASSUMPTIONS AND GENERAL LIMITING CONDITIONS APPENDIX: EXHIBITS CB RICHARD ELLIS CONSULTING Sedway Group Estimated Major Product Lines and Distribution of Sales, Proposed Home Depot Store, City of South San Francisco, 2008 Estimated Sales, Proposed Home Depot Store, City of South San Francisco, 2008 Map of Primary and Secondary Market Areas, South San Francisco, Ca Population Assumptions, Primary Market Area (City of South San Francisco) and Secondary Market Area, 2000 - 2020 Estimated Garden Supply Sales and Leakage Results, Primary and Secondary Market Areas, 2008 Estimated Sales of Closing Levitz Store, 'South San Francisco, 2008 Retail Sales Leakage Analysis, Primary Market Area (City of South San Francisco), 2003 Projected Retail Sales Leakage, Primary Market Area (City of South San FranciscoL 2008 Estimate Adjusted Sales and Attraction/Leakage Results, Primary Market Area (City of South San Francisco), 2008 Retail Sales Leakage Analysis, San Bruno, 2003 Projected Retail Sales Leakage, San Bruno, 2008 Retail Sales Leakage Analysis, Millbrae, 2003 Projected Retail Sales leakage Analysis, Millbrae, 2008 Retail Sales leakage Analysis, Burlingame, 2003 Projected Retail Sales leakage Analysis, Burlingame, 2008 Retail Sales Leakage Analysis, Secondary Market Area, 2003 Projected Retail Sales leakage Analysis, Secondary Market Area, 2008 Retail Sales Leakage Analysis, Primary and Secondary Market Areas, 2003 Projected Retail Sales Leakage Analysis, Primary and Secondary Market Areas, 2008 Home Depot Store Sales Impacts on Primary Market Area (City of South San Francisco) Retail Sales, 2008 Estimate Adjusted Home Depot Store Sales Impacts on Primary Market Area (City of South San Francisco) Retail Sales, 2008 Estimate Analytically Derived Maximum Diverted Sales as a Percent of Estimated Primary Market Area (City of South San Francisco) Sales, 2008 Estimate Annual New Population Retail Demand, Primary and Secondary Market Areas, 2008 - 2013 Exhibit 24: Cumulative New Population Retail Demand, Primary and Secondary Market Areas, 2008 - 2013 Exhibit 1: Exhibit 2: Exhibit 3: Exhibit 4: Exhibit 5: Exhibit 6: Exhibit 7: Exhibit 8: Exhibit 9: Exhibit 10: Exhibit 11: Exhibit 12: Exhibit 13: Exhibit 14: Exhibit 15: Exhibit 16: Exhibit 17: Exhibit 18: Exhibit 19: Exhibit 20: Exhibit 21: Exhibit 22: Exhibit 23: CBRE CB RICHARD ELLIS LIST OF EXHIBITS (LOCATED IN ApPENDIX) Exhibit 25: Survey of Potential Competitive Developments, Primary Market Area (City of South San Francisco) Exhibit 26: New Sales Base as a Result of Home Depot in Primary Market Area (City of South San Francisco), 2008 Estimate Exhibit 27: Cumulative Impacts of Proposed Lowe's Store, South San Francisco, 2008 Exhibit 28: Maximum Cumulative Diverted Sales as a Percent of Estimated Primary Market Area (City of South San Francisco) Sales, 2008 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS I. EXECUTIVE SUMMARY INTRODUCTION The purpose of this study is to research the prospective economic impacts of a planned Home Depot Store in the City of South San Francisco, California. The store would be located at 900 . Dubuque Avenue, which currently houses a Levitz furniture store. The site is proposed to be developed with a 1 01,272-gross-square-foot Home Depot Store and a 24,522-square-foot Garden Center, for a total store size of 125,794 square feet. The Home Depot is in the process of seeking approval from the City for this store, planned to open in 2007, with the first full year of operations anticipated by 2008. This study probes the potential impacts of the store on existing retailers from the store's operations. SUMMARY OF FINDINGS Home Depot Store Operational Information CBRE Consulting estimated that stabilized Home Depot Store sales will total $53.1 million in 2008 dollars, comprising $10.6 million in Home Furnishings and Appliances sales, $33.4 million in Building Materials sales, and $9.0 million in Garden Supplies sales. Stabilized sales are not expected to occur the first year of store operations, but rather the second or third year, which is typical of new retail operations. This is an aggressive sales estimate, assuming this proposed store performs at the national average. This may be an overstatement given the number of Home Depot Stores and other major home improvement stores in the general vicinity of South San Francisco. Of the sales, $42.8 million is estimated to be generated by primary and secondary market area residents. The primary market area is defined to include South San Francisco, while the secondary market area includes Millbrae, San Bruno, and North Burlingame. Impacts on Existing Primary Market Area Retailers The City of South San Francisco is an established retail shopping location, with attraction in some retail categories and leakage in others. The equivalent of 90 percent of resident spending potential is captured by South San Francisco retailers. Therefore, the City of South San Francisco is defined as the primary market area for the Home Depot Store. The secondary market area has been defined as San Bruno, Millbrae, and a portion of Burlingame north of Broadway, called "North Burlingame" for the purposes of this study. Additionally, there is still a significant level of demand generated by an undefined tertiary market area. If the Home Depot Store's primary and secondary market area sales occurred at the proportional expense of existing primary market area (City of South San Francisco) retailers, then existing retailers would experience a maximum annual net loss of $6.6 in Building Materials sales and $2.4 million in Garden Supplies sales upon stabilization of the Home Depot Store in 2008 dollars. There is no sales diversion in Home Furnishings and Appliances HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS stores anticipated, given the projected retail soles leakage in that category. While these sales volumes may seem lorge, the Building Materials figure comprises only 6.6 percent of 011 estimated City of South San Francisco Building Materials sales in 2008. The impact on Garden Supplies stores could be large, as this figure represents more than current garden supply category sales in 2008. This fact could be mitigated by the nature of South San Francisco's three garden supply stores, which appear to cater to a specialized market niche given their unique product offerings, which include custom lawn ornaments and statuary. Oftentimes, custom dealers attract sales from a larger market area than Home Depot does because those stores offer a unique and more expensive service than a national retailer like Home Depot. Thus, Home Depot's impact on garden supplies sales will likely be smaller than predicted because it will be providing products not currently available in the market area. Moreover, stated earlier, the Home Depot Store sales estimate is aggressive, and assumes the store performs at the national average. If sales are lower, reflective of market penetration of other Home Depot Stores and major home improvement stores, then the sales impacts on primary market area retailers will be commensurately lower. Building Materials' 6.6 percent diverted sales impacts are slightly above the range of what typically is regarded as seasonal or annual changes, generally considered anything less than five percent. This being said, having established South San Francisco as a hub with strong attraction in Building Materials sales, CBRE Consulting believes that home improvement stores in the primary market area are performing well, which in return would allow for larger than typical sales impacts. New population growth is anticipated to mitigate one quarter of the projected lost Building Materials sales volumes within five years, and a small percentage of the garden store sales within five years. Also, retailers could successfully reposition their stores and South San Francisco sales could increase overall due to the enhanced regionalism of South San Francisco's retail market. However, should specific home furnishings stores be subjected to a significant decrease in sales after the opening of the Home Depot Store, not mitigated by new demand, it is possible that one or more existing home improvement stores may close. Yet, without access to confidential individual store sales data, it is difficult to identify which stores might be most at risk of closing if this unlikely outcome is realized. Cumulative Impacts In addition to Home Depot's plans to develop a South San Francisco Store, Lowe's Home Improvement Warehouse plans to develop a new store in South San Francisco. The maximum cumulative impacts of both developments would result in $18.0 million in diverted sales, with $18.0 million diverted from existing Building Materials dealers. There are no anticipated cumulative impacts on the Home Furnishings and Appliances category, and it is very difficult to determine what, if any impacts, would be incurred by Garden Supplies stores due to the specialized nature of such stores in South San Francisco. Urban Decay Determination CBRE Consulting engaged in several retail market research tasks to assess the probability of urban decay and deterioration ensuing from development of the Home Depot Store, with urban decay defined as physical deterioration that is so prevalent and substantial it impairs HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 2 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS the proper utilization of affected real estate or the health, safety, and welfare of the surrounding community. These tasks revolved around assessing the potential for primary market area (City of South San Francisco) stores to close due to the Home Depot Store, and whether the store spaces, if any, were to remain vacant for a prolonged period of time or be leased to other retailers within a reasonable marketing period. The retail market research findings indicated that the retail market in South San Francisco is considered second-tier, with few destination retailers and a lack of high-quality space. While rental rates are generally lower than those in neighboring cities, South San Francisco is highlighted by a low vacancy rate. Many businesses identified as retail in nature are actually located in light industrial buildings, given the City's character as an industrial city with limited supply of traditional retail space. This fact could be advantageous in the event vacancies result from Home Depot's opening, as these spaces cauld be re-used with industrial tenants. Major national retailers located in South San Francisco include Costeo and Orchard Supply Hardware. However, South San Francisco's retail landscape could change in the future if current development proposals are approved and realized. In addition to Home Depot, Lowe's Home Improvement Warehouse is seeking approval for a new store in South San Francisco, and the Terrabay Specific Plan Area could include substantial new retail square footage that could upgrade the City's retail image. Several brokers with experience in the South San Francisco market indicated that there could be demand from retailers who seek lower rental rates in the event vacancies opened in the market. Though specific retailers were not identified, discount apparel stores were mentioned as one possibility. Further, Home Depot's entrance into the market could serve as an anchor to spur more retailer demand in South San Francisco. Thus, CBRE Consulting concludes that the development of the Home Depot Store will likely not contribute to urban decay in the primary market area (City of South San Francisco). HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 3 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS II. INTRODUCTION STUDY BACKGROUND The Home Depot, USA, Inc. is proposing to develop a 101 ,272-gross-square-foot retail store with an additional 24,522-square-foot outdoor Garden Center in South San Francisco, California. The proposed store would be located at the site of a closing Levitz Furniture Store just off Highway 101 and Oyster Point Boulevard, at 900 Dubuque Avenue. The Home Depot is in the process of seeking approval from the City of South San Francisco for this store, planned to open in 2007, with the first year of full operation in 2008. There are currently two Home Depot Stores located in proximity to the proposed Home Depot Store: a regular Home Depot Store and a Home Depot Pro store, both in the Town of Colma. In addition, The Home Depot plans to develop two additional stores proximate to South San Francisco - in Daly City and San Francisco. While the Daly City Store is approved and will open in 2006, the San Francisco Store has not yet received a site permit from the City. The purpose of this study is as follows: 1 ) To probe the potential impacts of the Home Depot Store on existing primary market area retailers, especially home improvement-related stores; 2) To estimate the cumulative impacts of other selected retail projects in the primary and secondary market areas; and 3) To develop an estimate of the extent to which the opening of the Home Depot Store mayor may not contribute to urban decay in the primary market area. This report documents CBRE Consulting's research and analysis probing the aforementioned issues. STUDY TASKS CBRE Consulting engaged in several tasks to complete this assignment. In brief, these tasks included the following: · Independently verified the sales estimate provided by Home Depot; · Identified major home improvement store retailers in the City of South San Francisco region and beyond; · Identified a primary and secondary market area for prospective Home Depot Store shoppers; · Conducted fieldwork to identify and evaluate existing primary market area home improvement stores; · Collected and analyzed primary market area and secondary market area taxable retail sales; · Conducted retail leakage analyses for the primary market area and the secondary market area; · Estimated the share of the Home Depot Store's sales to be generated by the primary and secondary market areas versus a tertiary market area; HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 4 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELUS · Estimated the maximum Home Depot Store impacts on existing pnmary market area retailers; · Estimated the share of the Home Depot Store's sales likely to be new to the pnmary market area; · Assessed the competitiveness of existing primary market area home improvement stores and likely Home Depot Store impacts; . Identified planned retail projects in the primary market area; . Assessed the cumulative impacts of selected planned comparable retail projects in the primary market area; and . Assessed the extent to which opening of the Home Depot Store mayor may not contribute to urban decay in the primary market area. The detailed findings pertaining to these tasks are reviewed and fully documented In this report, with detailed analytical findings presented in the exhibits in Appendix A. STUDY RESOURCES Many resources were relied upon for this study. These included information provided by Home Depot, USA, Inc.'s 2004 Form 10-K on file with the United States Securities and Exchange Commission. Additional study resources included the City of South San Francisco Planning Department, the Association of Bay Area Governments' (ABAG) 2005 Projections for population and income estimates, and the State of California Board of Equalization for 2003 taxable sales data. Resources prepared by Claritas, Inc., a national provider of demographic and economic data, were relied upon for determining the population and income in North Burlingame, a portion of the secondary market area that included roughly half of the City of Burlingame's population. Home improvement retailers were identified through data generated by InfoUSA. Inflationary adjustments were made based upon the Consumer Price Index for the San Francisco MSA. An industry report entitled "Retail Maxim: Perspectives on Finance and Real Estate" from July 2004 was used for various sales' estimates at retailers in the market area. REPORT ORGANIZATION This report includes six chapters, as follows: I. Executive Summary II. Introduction III. Store Sales Impacts IV. Impacts on Existing Primary Market Area Retailers V. Cumulative Impacts VI. Urban Decay Determination This report is subject to the appended Assumptions and General Limiting Conditions. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 5 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS III. STORE SALES IMPACTS CBRE Consulting's summary findings relative to the anticipated retail sales of the proposed Home Depot Store are presented below. These include estimates of the total sales generated by the store, the minimum amount of sales estimated to be net new to the primary market area, and the maximum amount of sales estimated to be diverted away from existing primary market area home improvement stores. The potential for lost sales to be mitigated through population growth and other factors is also presented. STORE LOCATION AND SIZE The proposed Home Depot Store will be located at 900 Dubuque Avenue, which is just off Highway 101 near the Oyster Point Boulevard exit. The site currently houses a Levitz Furniture store. The Home Depot Store is planned to include 101,272 gross square feet of retail store space, plus a 24,522-square-foot outdoor Garden Center, for a total store size of 125,794 square feet. The square foot figures were provided by The Home Depot. PROJECTED HOME DEPOT STORE SALES Total Store Sales CBRE Consulting estimated store sales at the proposed Home Depot Store based on a generally accepted approach in the real estate analysis community, which applies average store sales per square foot to the projected store size. In order to identify anticipated store sales per square foot, assumptions were made based on information provided in the Home Depot, USA, Inc. 2004 Form 10-K. According to the Form 10-K, average sales per square foot of all Home Depot Stores were $375 per square foot in 2004. The Home Depot Store is proposed to open in 2007. For the purpose of this analysis, CBRE Consulting assumes sales in year 2008 dollars to account for the first full year of operation. Stabilized sales are not expected to occur the first year of store operations, but rather the second or third year, which is typical of new retail operations. However, for analytical purposes, these sales are conservatively assumed to occur in 2008. To inflate the estimated sales, CBRE Consulting assumed an annual inflationary adjustment of 3.0 percent from 2004 to calendar year 2008, resulting in an average store sales projection of $422 per square foot in 2008. Assuming the $422 per square foot average sales across all store space, the Home Depot Store's sales would be forecasted in 2008 to total $53.1 million, assuming store stabilization by then. This is an aggressive sales estimate, assuming this proposed store performs at the national average. This may be an overstatement given the number of Home Depot Stores and other major home improvement stores in the general vicinity of South San Francisco. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 6 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS Projected Sales by Category For analytical purposes, the total sales estimate is disaggregated into key retail categories. These categories match the taxable retail sales categories reported by the State of California Board of Equalization. While Home Depot's actual sales will be reported by the State Board of Equalization in the Lumber and Building Materials sub-category, the impact of these sales is more appropriately analyzed relative to all the home improvement categories and sub- categories that include stores competitive with or complementary to Home Depot. This includes stores that are classified as home furnishings and appliances, such as carpet and flooring stores. The sales categories and respective shares shown in Exhibits 1 and 2, and summarized in Table 1 below, are figures based upon detailed Home Depot Store sales analysis conducted by CBRE Consulting. For the purpose of this analysis and in keeping with the State Board of Equalization's categorization, garden sales were collapsed into the Board of Equalization's "Other Retail" category. Table 1 Major Sales Categories and Respedive Shares Planned Home Depot Store City of South San Francisco Retail Category Home Furnishings and Appliances Building Materials Garden Supplies Total Source: Exhibit 1; and CBRE Consulting. Share 20% 63% 17% 100% Sorting the anticipated Home Depot sales into these categories facilitates detailed economic impact analysis by type of. existing home improvement store. The estimation of sales by category for the Home Depot Store is presented in Exhibit 1. The results, summarized in Table 2 below, indicate that the store will have the potential to generate up to $10.6 million in home furnishings and appliances sales, $33.4 million in building materials sales, and $9.0 million in garden supplies sales, comprising the total sales estimate of $53.1 million. Table 2 Estimated Sales by Category Planned Home Depot Store City of South San Francisco 2008 Dollars (Millions) Retail Category Sales Home Furnishings and Appliances $10.6 Building Materials $33.4 Garden Supplies $9.0 Total (1) $53.1 (1) Sales figures may not totol due to rounding. Sources: Home Depot, USA, Inc.; Exhibit 2; and CBRE Consulting. The following analysis examines the extent to which the home furnishings and appliances, building materials, and garden supplies sales will comprise new sales to the primary market area and mayor may not impact existing primary market area retailers. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 7 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS NET NEW SALES TO THE PRIMARY MARKET AREA CBRE Consulting engaged in several analytical steps to assess the prospective minimum share of the Home Depot Store's sales new to the primary market area and the associated impacts on existing retailers. These steps included estimation of the following: · Primary market area; · Secondary market area; · Share of Home Depot Store sales originating from a tertiary market area; · Primary market area, combined primary and secondary market area, and secondary market area retail leakage and attraction; · Maximum share of Home Depot Store sales likely to be initially diverted from existing primary market area retailers, on a worst case basis; and · Impact of population growth and other factors on sales impacts. The following summary findings are documented in a series of exhibits included In the Appendix, as noted. Primary Market Area Definition CBRE Consulting estimates that the primary market area for retail demand in South San Francisco is the City of South San Francisco, with residents in South San Francisco comprising the largest share of demand for retail sales (See Exhibit 3 for Map of Market Area). Retail sales data analysis indicates thot the equivalent of 89 percent of South San Francisco sales are generated by South San Francisco residents, though this demand generation varies widely across retail categories. Whereas resident spending in Apparel Stores greatly exceeds sales captured by local retailers, indicating that South San FranCisco residents spend a substantial amount of money outside of South San Francisco on Apparel, resident spending on Home Furnishings and Appliances and Building Materials accounts for 68 and 62 percent of total sales, respectively. The majority of South San Francisco resident spending in most categories, including these home improvement categories, is captured within South San Francisco. Thus, South San Francisco generates many of its own retail sales and is considered its own primary market area for this analysis. Secondary Market Area Definition CBRE Consulting identified a secondary market area for the proposed Home Depot Store. The secondary market area has been generally defined to include the following areas: · The cities of San Bruno and Millbrae; and · The northern portion of Burlingame, or "North Burlingame," whose residents were deemed more likely to travel to South San Francisco's Home Depot than the existing store in the City of San Mateo, while residents of "South Burlingame" were considered more likely to shop at the San Mateo Store. CBRE Consulting defined North Burlingame as the portion of Burlingame north of Broadway, which provides the northernmost point of access to Highway 101 in the City of Burlingame for northbound and southbound drivers. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 8 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB AICHARD ELLIS This secondary market area definition reflects the existing nature of retailing in South San Francisco and the location of other major home improvement stores, including Home Depot Stores. CBRE Consulting identified representative major home improvement stores located in the general area, including the San Francisco Peninsula from the southernmost point of San Mateo County, Palo Alto, up north to San Francisco. The boundaries of the secondary market area, as depicted in Exhibit 3, are reflective of the area the proposed Home Depot Store will most likely draw from. It is assumed that residents north of the primary and secondary market areas will be attracted to the existing Home Depot stores in Colma and other home improvement stores in Daly City and San Francisco (including planned Home Depot Stores in both cities); and residents located south of the secondary market area will be attracted to the Home Depot and home improvement stores located in San Mateo. The next nearest Home Depot Stores to South San Francisco are located in San Mateo and Colma, approximately 12 and 8 miles by car from the proposed Home Depot Store site, respectively. CBRE Consulting estimates that primary and secondary market area residents will generate 95 percent of the Home Depot Store's sales in Home Furnishings and Appliances, 75 percent for Building Materials, and 85 percent for Garden Supplies sales. These percentage allocations are derived from the retail leakage analysis findings for the combined primary and secondary market area (see following section).' Residents of an undefined tertiary market area, which could include shoppers traveling along Highway 101 that stop into Home Depot due to its visible location, are estimated to generate the remaining percentage of sales by category. The concept of a percentage share allocation of demand from a market area is consistent with general real estate market analysis principles, which recognize that regional retailers have primary, secondary, and often even tertiary market areas. Geographic Origin of Store Sales Given the stabilized store net new sales estimate of total sales of $53.1 million ($10.6 million in home furnishings and appliances, $33.4 million in building materials, and $9.0 million in garden supplies sales), coupled with the estimated split of sales between the combined primary and secondary market areas and tertiary market area, the Home Depot Store's sales are estimated to originate as follows: Retail Category Home Furnishings and Appliances Building Materials Garden Supplies Total (1) (1) Figures do not total due to rounding. Source: Exhibit 20; and CBRE Consulting. Table 3 Geographic Origin of Sales - Planned Home Depot Store City of South San Francisco - 2008 Dollars (Millions) Primary and Secondary Market Area $10.1 $25.1 $7.7 $42.8 Total $10.6 $33.4 $9.0 $53.1 Tertiary Market Area $0.5 $8.4 $1.4 $10.2 , The leakage results documented in the next section indicate that the equivalent of 6.9 percent of combined primary and secondary market sales in home furnishings and appliances are generated by non-residents, Le., the tertiary market area. The comparable figure for building materials is 34.8 percent. Thus the tertiary market area percentages of 5 and 25 percent, respectively, are conservative, because they assume a greater impact to the primary and secondary market areas. The overall market attracts 23.9 percent of sales. If garden supplies sales were to reflect the same level of attraction seen in the market as a whole, it would also attract 23.9 percent of its sales from the tertiary market area. Since CBRE Consulting can not say for sure that this will occur, it is conservatively assumed that 15 percent of garden supplies sales will be attracted from the tertiary market area. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 9 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS These estimates indicate that a total of $42.8 million in Home Depot Store sales are estimated to be generated from within the store's primary and secondary market areas. Retail Leakage Analysis Approach. CBRE Consulting operates a proprietary model that estimates retail spending potential for a market area (usually a city, grouping of cities, or county) based upon population, income, and consumer spending patterns.2 The model then determines the extent to which a market area is or is not capturing this sales potential based upon taxable sales data published by the State of California Board of Equalization or provided by city tax consultants. In order to determine the anticipated pattern of retail spending for a market area, the model uses a benchmarked control area. For the purposes of this study, the control area is the nine-county Bay Area. The purpose of the control area is to control for characteristics unique to individual markets that might artificially inflate or deflate the calculated spending pattern of area residents, such as the City of San Francisco's strong regional draw. Retail categories in which spending is not fully captured are called "leakage" categories, while retail categories in which more sales are captured than are generated by residents are called "attraction" categories. Generally, attraction categories signal particular strengths of a retail market, while leakage categories signal particular weaknesses. Population and Income Estimates. CBRE Consulting's leakage model conducts the analysis for all retail sales in an area, including taxable and nontaxable. However, for purposes of this study, the findings focus on the categories most relevant to the Home Depot Store, e.g., home furnishings and appliances, building materials, and garden supplies sales. For the leakage analysis, different sources were used for population and mean household income figures and projections: the Association of Bay Area Governments (ABAG), Projections 2005, was the source of population estimates and income figures for most areas; and Claritas, a market research and data collection company, was used to estimate the population in North Burlingame. To estimate the population in the northern portion of Burlingame included in the secondary market area definition ("North Burlingame"), whose residents are estimated to be more likely to shop at the South San Francisco Home Depot Store than the existing store in San Mateo, CBRE Consulting extracted Claritas data for the area of Burlingame north of Broadway. According to Claritas, 44.2 percent of Burlingame's residents live north of Broadway. This percentage was multiplied by the total Burlingame population provided by ABAG to estimate North Burlingame's population (see Exhibit 4). The population estimates were projected forward using the compound average growth rate, derived from relevant projected population data. Population estimates and projections were provided for the years 2000, 2005, 2010, 2015, and 2020; intermediary years were calculated. Population projections predict modest growth in the primary and secondary market areas for the years under review. In the primary market area (South San Francisco), approximately 800 new residents are expected belween 2005 and 2008, representing total growth of slightly more than one percent. The combined primary and secondary market area populations are projected to grow at an annual rate of roughly 0.5 percent belween 2005 2 Much of the analysis is predicated upon spending patterns by household income per the United States Department of Labor, Bureau of Labor Statistics, Consumer Expenditure Survey. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 10 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS and 2010, with 3,150 new residents anticipated for that time period. With much of the developable land in the market areas already built out, most of the new population will be a result of infill projects throughout the four cities included in the market areas. Estimated Garden Supplies Sales. While the Board of Equalization presents Home Furnishings and Appliances and Building Materials in their own distinct retail category for each city in California, garden supply stores are captured within the Other Retail Stores category. In order to estimate garden suppl"y sales, CBRE Consulting obtained a more detailed city-level report from the Board of Equalization that reports actual sales in the Farm and Garden Supply subcategory. However, this report is also based in part on data subject to the confidentiality policies as discussed in the next paragraph, and as such, garden supply sales were suppressed in each component city of the primary and secondary market areas. Therefore, CBRE Consulting developed an approach to estimating sales in garden supply stores, and Exhibit 5 details how these estimates were derived. While this estimate ultimately indicates that sales in comparable stores total $1.8 million per year, it is unlikely that the stores operating in South San Francisco provide comparable products or services to those offered at the Garden Center of Home Depot. For instance, two of the three garden supply stores identified in South San Francisco specialize in statues and lawn ornaments; while Home Depot does carry similar products, it is unlikely that they would be of the same quality or offer the same services that would compete with stores dedicated entirely to statuary. Therefore, the products sold by these stores are only minimally comparable to those offered at Home Depot. Analytic Adjustment Required Due to Confidentiality. The leakage analysis conducted for the combined primary and secondary market areas involved an analytic adjustment necessitated due to data limitations. When the Board of Equalization publicly reports data, it will not report data for a sales category if it does not meet certain disclosure requirements. For example, if there are only one or two stores in a category or the category sales are dominated by one retailer, then the sales in that category will not be released. Instead, they will be combined with the sales in another category. This issue arose when estimating relevant retail category sales in several of the areas included in the market areas, whose leakage analyses can be found in Exhibits 8 through 19. In the case of the City of San Bruno, the Board of Equalization combined the "Building Materials! Farm Implements" sales with "Other Retail Stores." Exhibit 10 details how CBRE Consulting made adjustments to avoid overstating the other retail category and understating other categories. In Millbrae, the Board of Equalization combined the "Home Furnishings and Appliances" sales with "Other Retail Stores;" Exhibit 12 details how CBRE Consulting made adjustments in this case. Analytic Adjustment Made for North Burlingame. CBRE Consulting devised an approach to estimate sales in North Burlingame, since the Board of Equalization's taxable sales data only comes at the entire City level. Using an estimate of business concentration in Burlingame, CBRE Consulting determined that 22.8 percent of retail businesses were in North Burlingame. Thus, CBRE Consulting assumed that 22.8 percent of Burlingame's retail sales occur in the north, and multiplied the total sales figures by the 22.8 percent factor to determine the sales in North Burlingame. Sales Adjustment For Levitz Closure. CBRE Consulting made adjustments to the projected leakage findings to account for the closure of Levitz, located at the site of the proposed Home Depot (900 Dubuque Avenue) during 2005. Since the benchmark Board of Equalization data are from 2003, the store's sales are included in the preceding results but will be removed by HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 11 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS 2008. Exhibit 6 estimates the store's sales as $32.0 million in 2008 dollars. This sales estimate is subsequently factored into the 2008 leakage model results in Exhibit 9. Because the store is a furniture store, only the home furnishings category is impacted. Findings. Two leakage analyses were conducted to assess the state of the primary market area's (City of South San Francisco) retail climate. The first leakage analysis, presented in Exhibit 7, examines the primary market area's sales performance relative to its own population base in order to assess the degree to which it is serving the retail needs of its resident population. In this analysis, South San Francisco comprises the primary market area. A second leakage analysis, displayed in Exhibit 8, examines the sales performance of the Home Depot Store's combined primary and secondary market area. The leakage results for the primary market area (City of South San Francisco) and the combined primary and secondary market area are located in the Appendix (see Exhibits 7 through 9 for primary market area results and Exhibits 10 through 19 for secondary market area constituent city and combined primary and secondary market area results). For benchmark purposes, detailed results for all retail categories are presented for each area, as well as results specific to the home furnishings and appliances, building materials, and other retail stores retail categories to be represented at the Home Depot Store. The leakage analyses were conducted using 2003 sales data and extrapolated to 2008, reflecting the sales estimates for the Home Depot Store upon completion. The 2003 data were used because they reflect the last full year for which retail sales data were available from the Board of Equalization at the time the study was conducted. The per capita expenditure trends from 2003 were assumed to be equivalent to the per capita expenditure trends for 2008, with adjustments for interim population growth and inflation. The purpose of this adjustment was to maximize comparison with the Home Depot Store's anticipated primary and secondary market area sales in 2008 dollars. The primary market area (City of South San Francisco) is generally typified by attraction, though several categories do experience leakage. All of the home improvement-related retail categories experienced significant attraction in sales, while Apparel, Food Stores, Eating and Drinking Places, and Auto Dealers and Auto Supplies all experienced leakage. On a percentage basis, 11 percent of South San Francisco sales were attracted from outside of the City, including 32 percent of Home Furnishing and Appliances sales and 38 percent of Building Materials sales (see Exhibit 8). Spending by primary market area (City of South San Francisco) residents represents an equivalent of 89 percent of the total retail spending in the primary market area. This substantiates the definition of the city as the primary market area, as the source of the majority of the ,city's retail sales. Furthermore, the combined primary and secondary market area continues to have attraction and generate approximately 24 percent of all retail spending from outside the market area. In the relevant categories to Home Depot, the primary and secondary market area attracts 6.9 percent of its Home Furnishing and Appliances sales and 34.8 percent of Building Materials sales from outside the combined market areas (see Exhibit 18). IMPLICATIONS FOR NET NEW SALES GENERATION Sales Impacts on Existing Stores. CBRE Consulting has developed an analytic approach that estimates the maximum impact of a store such as the proposed Home Depot Store on existing retailers. For this analysis, the approach assumes that if the Home Depot Store is adding sales to a category in an amount greater than any primary or combined primary and secondary HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 12 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS market area leakage in the category, then at worst, the amount of Home Depot Store sales in that category in excess of any leakage will be diverted away from existing primary market area retailers in proportion to the primary market area retailers' contribution to combined primary and secondary market area sales. In other words, the negative impacts of the Home Depot Store's sales will be spread proportionally among all the like retailers in the combined primary and secondary market area. This diversion estimate, prepared for analytic purposes, assumes no recovery among the impacted retailers. This approach is analytically displayed in Exhibits 20 and 21, which takes into account the following factors for the three most relevant retail sales categories: · Home Depot Store sales by major category; · Estimated Home Depot Store sales by major category generated by combined primary and secondary market area residents; · The primary market area's (City of South San Francisco) share of adjusted combined primary and secondary market area sales based upon the historic distribution of sales; · The share of Home Depot Store sales estimated, at maximum, to be diverted from existing primary market area (City of South San Francisco) retailers upon stabilization; and · The minimum sales achieved by the Home Depot Store not diverted away from existing primary market area (City of South San Francisco) retailers. This is a conservative approach, in that it assumes there will be no net increase in primary and secondary market area sales after the Home Depot Store achieves market stabilization aside from new resident spending. Such increases commonly happen as residents shift their shopping pa1terns or increase their expenditures based upon the enhanced availability of consumer goods. This is why CBRE Consulting considers the resulting existing retailer impacts maximum estimates upon stabilization, documented in Exhibit 21 and summarized below in Table 4, with the resulting net new sales to the City of South San Francisco minimum estimates. Retail Category Home Furnishings and Appliances Building Materials Garden Supplies Total (1) (l) Figures may not total due to rounding. Source: Exhibits 20 ond 21; and CBRE Consulting. Table 4 Maximum Retailers Sales Impacts Upon Stabilization Planned Home Depot Store City of South San Francisco 2008 Dollars (Millions) Maximum Sales Diverted From South San Francisco Retailers $0.0 $6.6 $2.4 $9.0 Home Depot Sales $10.6 $33-4 $9.0 $53.1 Minimum Net New Sales to South San Francisco $10.6 $26.9 $6.6 $44.1 These results indicate that, at worst, $9.0 million in sales captured by the Home Depot Store upon stabilization will comprise sales diverted away from existing City of South San Francisco home improvement stores. Thus, the balance of new sales, comprising $44.1 million, is the minimum estimate of Home Depot Store sales new to South San Francisco. These figures are conservative and are presented as an analytical benchmark. They are considered conservative for several reasons. Foremost, they assume the maximum diversion HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 13 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS away from existing retailers upon stabilization of the Home Depot Store. Thus, they do not take into account any prospective market corrections or enhancements following the introduction of the Home Depot Store to the marketplace, including competitive retailer repositioning. In addition, as stated earlier, the Home Depot Store sales estimate is aggressive, and assumes the store performs at the national average. If sales are lower, reflective of market penetration of other Home Depot Stores and major home improvement stores, then the sales impacts on primary market area retailers will be commensurately lower. Implicit in the sales impact methodology is the assumption that the South San Francisco Home Depot Store will divert sales away from existing Home Depot Stores in Colma and San Mateo, the stores closest to primary and secondary market area residents. Home Depot's annual report indicates that new stores often "cannibalize" sales from existing stores.3 This is done strategically by Home Depot to "enhance service levels, gain incremental sales and increase market penetration."4 Even though South San Francisco is characterized by sales attraction, the methodology assumes that a portion of the sales achieved at neighboring city Home Depot Stores comprise unmeasured leakage from the primary and secondary market areas. Thus, the recapture of these sales is deducted in Exhibit 21 from the analytically derived maximum sales impacts on existing primary market area retailers, as these sales essentially comprise new sales to the primary market area in the form of recaptured leakage. Based on information in Home Depot's annual report, it is assumed that 10 percent of the new store's sales, or $5.3 million, will comprise these recaptured sales from other Home Depot Stores. It is important to note that Home Depot's 2004 Annual Report indicates that 17 percent of its sales in certain new locations were "cannibalized" from existing stores, but CBRE Consulting considered the cumulative effect of three new Home Depot Stores planned proximate to the primary and secondary market areas and determined that 17 percent cannibalization from each store would be too aggressive (South San Francisco, San Francisco Bayshore, and Daly City). If this 17 percent figure were applicable to Home Depot's three new Bay Area stores, these stores could cannibalize as much as 51 percent of sales from the existing stores in Colma, which does not seem reasonable. Therefore, CBRE Consulting assumed that no more than 30 percent of Colma's sales would be cannibalized by the three new stores, and divided this number equally among the new stores. Therefore, the 10 percent figure used for South San Francisco is conservative, given that sales will also likely be diverted from Home Depot's San Mateo store as well. The maximum sales diverted represent just 7.4 percent of the estimated combined total home furnishings and appliances, building materials, and garden supplies sales in South San Francisco in 2008 (see Exhibit 22). Specifically, the maximum figure of $6.6 million in diverted Building Materials sales comprises 6.6 percent of South San Francisco Building Materials sales, estimated at $99.9 million in 2008. The maximum figure of $2.4 million in diverted garden supplies sales comprises 132.7 percent of South San Francisco Garden Supplies sales, estimated at $1.8 million in 2008. This does not necessarily mean that the three existing garden supply stores would close as a result of Home Depot's opening, however, given the specific nature of those stores. For instance, two of the garden supply stores predominantly sell custom-made lawn ornaments and statues, and could be differentiated enough to avoid direct competition with the kinds of garden products offered at Home Depot. Finally, there will be no sales diversion for Home Furnishings and Appliances sales, given the unabsorbed leakage in that category. These estimates assume the Home Depot Store achieves stabilization 3 The Home Depot, 2004 Annual Report, page 16. 4 Ibid. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 14 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS in 2008, which is aggressive, given that the earliest the store could open given the planning process is 2007 and that stabilization is unlikely to occur before 2009 at the earliest (i.e., two years). Thus, by the time the Home Depot Store achieves stabilization, these sales percentages will be lower reflecting a new sales base due to an extra year of demand generation (because initial sales will likely be less than shown in this conservative estimate). Mitigating Effects of Population Growth and Other Factors. Despite the size of the analytically-derived maximum sales estimates summarized in Table 4, they will likely lessen by the time the Home Depot Store achieves stabilization after about two to three years. Factors contributing to this finding include the primary market area (City of South San Francisco) and secondary market area's anticipated population growth, and the demonstrated ability of retailers to generally respond to increased levels of competition. The greatest mitigating factor to any potential negative Home Depot Store impacts is usually the anticipated population growth and the associated spending of these new residents. However, in the case of the primary and secondary market areas for the South San Francisco store, residential development and population growth are not expected to be strong between 2008 and 2013, growing at a rate of between 0.5 and 1.0 percent per year. For example, between 2008 and 2013, the primary market area's (City of South San Francisco) population is anticipated to grow by 2,483, with primary and secondary market area population growth estimated at 3,230 (see Exhibits 23 and 24). This is due to the built out nature of the north San Francisco Peninsula, with little developable land left for residential, or commercial, development. Thus, given the estimated per capita spending for the primary market area (City of South San Francisco) and combined primary and secondary market area residents, and the primary market area's (City of South San Francisco) historic share of combined primary and secondary market area sales, this new population is estimated to generate the following new sales by 2013: Retail Category Home Furnishings and Appliances Building Materials Garden Supplies Total Source: Exhibits 23 and 24; and CBRE Consulting. Table 5 Cumulative New Population Retail Demand Primary Market Area and Combined Primary and Secondary Market Area 2008 - 2013, In 2008 Dollars (MIllions) Primary Market Area (City of South San Francisco) $1.4 $2.5 $0.1 $4.0 Secondary Market Area $0.5 $1.2 $0.0 $1.7 Estimated Primary Market Area Capture $0.4 $0.9 $0.1 $1.5 These" figures indicate that by 2013, primary market area (City of South San Francisco) retailers are estimated to capture" an additional $0.4 million in Home Furnishings and Appliances sales, $0.9 million in new Building Materials sales, and $0.1 million in garden supply store sales. These figures compensate for some of the $6.6 million in Building Materials sales, some of the $2.4 million in garden supply sales estimated to be diverted away from primary market area (City of South San" Francisco) retailers as a result of the Home Depot Store sales, and add an additional $0.4 to the demand for Home Furnishings and Appliances sales. The extent to which these diverted sales will impact existing retailers will depend upon many factors, such as their market niche, hours of operation, market strength, store and HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 15 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS management quality, and location relative to the Home Depot Store. Many of these factors are presented in the following chapters, with the Impacts on Existing Primary Market Area (City of South San Francisco) Retailers Chapter in particular discussing likely impacts on the primary market area's (City of South San Francisco) home improvement stores. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 16 NOVEMBER 2005 CB RICHARD ElLIS CONSULTING CBRE CB RICHARD ELLIS IV. IMPACTS ON EXISTING PRIMARY MARKET AREA (CITY OF SOUTH SAN FRANCISCO) RETAILERS The analytical findings presented in the previous chapter indicate that, at worst, up to $6.6 million in building materials sales and $2.4 million in garden stores sales might be initially diverted .away from existing primary market area (City of South San Francisco) retailers following the development of the Home Depot Store, with no sales diversion in Home Furnishings and Appliances stores. This chapter in turn probes the extent to which these maximum sales impacts might or might not impact existing home improvement stores based on their store characteristics. COMPETITIVE HOME IMPROVEMENT STORE SALES The leakage analysis and subsequent adjustment indicated that in 2008 dollars, a maximum of $6.6 million in Building Materials sales and $2.4 million in Garden Supply sales may be diverted away from existing home improvement stores in the City of South San Francisco; no diversion is expected for Home Furnishings and Appliances sales, given that there is sufficient leakage to absorb Home Depot's impact in that category. This is the equivalent of 6.6 percent and 132.7 percent, respectively, of the estimated 2008 category retail sales. Such a high sales diversion in Garden Supply Stores suggests that the Garden Supply category is underseved in the primary market area (City of South San Francisco), and these sales would likely represent new sales to the primary market area diverted away from stores outside the primary market area. Additionally, these levels of diverted sales assume the Home Depot Store achieves full stabilization in 2008, which is unlikely. There are several major home improvement stores existing in South San Francisco. These include Orchard Supply Hardware, hardware stores such as Ace Hardware and True Value Hardware, floor covering stores such as Color Tile, paint stores like Kelly Moore, and lumber yards such as South City Lumber (part of Ace Hardware). Each of these stores have already withstood the competitive influence of each other and other home improvement stores in South San Francisco, which suggests a strong market for home improvement goods. Generally speaking, South San Francisco is split by Highway 101 (Hwy 101), with a large industrial park comprising most of the area to the east of Hwy 101 and residential and commercial development concentrated to the west of Hwy 101. Most retail businesses located east of Hwy 101 are not operating in traditional retail space, with primarily industrial development on that side of town. A notable exception is Levitz, which sits along Hwy 101 on the east side. Downtown South San Francisco, west of Hwy 101, features a strip of shops and restaurants including two convenience-oriented hardware stores, Grand Avenue True Value Hardware and Frank Giffra and Sons Hardware. An additional commercial corridor runs along EI Camino Real, with a concentration of somewhat dated retail strip centers and fast food restaurants south of Orange Avenue, leading up to a newer Costeo store north of Orange Avenue. There is a strip center in the extreme north part of town on Hickey Boulevard that houses a Kelly Moore Paints store, and a large shopping center on Gellert Court on the west side of town, which is anchored by Orchard Supply Hardware. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 17 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS HOME DEPOT STORE IMPACTS Overall Impact The preceding analysis estimated a maximum sales impact on City of South San Francisco home improvement related stores of a total of $9.0 million. Without access to confidential actual sales figures and comparing these to national and regional sales figures, it is not possible to establish the relative performance of the home improvement stores in South San Francisco. Given that an average sales per square foot for building materials is $372 in 2008, loss of support for up to approximately 30,400 square feet of existing store space could occur, until such time as this level of demand is recouped through new market area population growth and associated demand. This impact is likely to be spread evenly among existing stores; in the possible event that one small store were to close, the sales would likely be equally re-distributed among the remaining stores. The cumulative retail demand estimates due to population growth documented in Exhibit 24 indicate that $0.4 million of South San Francisco Home Furnishings and Appliances sales, $0.9 million of South San Francisco Building Materials sales (or approximately one quarter of the estimated diverted sales), and $0.' million of South San Francisco Garden Supply stores sales will be generated by new growth in five years following the assumed 2008 full year operation of the Home Depot Store. Cumulative demand figures could be higher if the City of South San Francisco increases its share of secondary market area sales, if sales increase due to the added attraction of the Home Depot Store, and/or if population growth exceeds the projections. However, if stores cannot withstand a temporary downturn in sales, it is possible that one or more existing home improvement stores may close. Without access to confidential individual store sales data, it is difficult to identify which store(s) might be most at risk of closing if this outcome is realized. Stores not as susceptible to negative impacts from the Home Depot Store, and thus less at risk of closing, include stores with a strongly defined specialty or niche, offering services or levels of service not available at Home Depot. Store Impacts In building materials sales, the Home Depot sales category with the greatest projected primary market area impact, Home Depot will likely capture a significant amount of its diverted sales from the existing Home Depot Stores in Colma and San Mateo, and possibly the Lowe's store in San Bruno. The following discusses other prospective store impacts. South City Ace Hardware and Lumber is located in central South San Francisco at the intersection of Railroad and Spruce avenues. CBRE Consulting observed moderate-to-high shopper volume when it visited the store at mid-morning on a weekday. Its product offerings cater to both contractors and do-it-yourselfers, as it includes a sizable lumber yard in addition to a full-sized hardware store. Any impact on its sales from the presence of a large national retailer in the market area has probably already been fully manifested in its sales due to the presence of Lowe's Home Improvement Warehouse in the secondary market area, but given the expected primary market area sales diversion from Home Depot, it is likely that South City Ace Hardware and Lumber would see a sales impact from Home Depot's opening. However, due to its presence as an established market leader, it likely has a loyal clientele who would continue to shop at Ace even after Home Depot enters the market. Moreover, hardware stores HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 18 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS like Ace often serve a convenience-oriented shopper looking for a few items in a quick trip the store, which is not typical of shopping trips to Home Depot. Therefore, it is not likely to close. The OSH store is located in a newer looking shopping center several miles away from the proposed Home Depot, west of Highway 280. Its location is sufficiently removed from the main commercial corridors of South San Francisco, and it likely has its own market niche based on its remote location. As such, it is also not likely to be materially impacted by a Home Depot Store. Grand Avenue True Value Hardware and Sporting Goods is located in downtown South San Francisco. It carries the products typically seen at a True Value Hardware store, and its main clientele is the convenience shopper. It also sells guns and ammunition. CBRE Consulting visited the store on a weekday afternoon, when there was not a lot of customer traffic. The store emphasized customer service and had a generally consumer friendly feel. These types of convenience-based stores are not seen as competitive with the larger format stores, like Home Depot, given their focus on providing excellent customer service for everyday hardware purchase needs. Shoppers who travel downtown to shop will likely continue to patronize Grand Avenue True Value Hardware, and it is unlikely to be materially impacted by Home Depot. The stores currently offering garden supplies in South San Francisco include A Silvestri Garden Ornaments and Giannini Garden Ornaments. Each is located in an industrial area in the southern part of South San Francisco, near the City's border with San Bruno, and removed from the commercial centers downtown and along EI Camino Real. Their product offerings are mostly large statues and garden ornaments that tend to be more expensive and rarefied than the similar categories of products offered at Home Depot. Further, they do not offer certain items available in Home Depot's garden center, including plants, fertilizers, and gardening tools. Stores of this nature appear to cater to a larger market area than Home Depot, given their obvious appeal to a specific niche in the home improvement market. For these reasons, it is not likely that they would compete directly with, and therefore would not be materially impacted by, a Home Depot Store in South San Francisco. The likely impacts on smaller specialty stores cannot be generalized across the primary market area because of a lack of data on actual sales performance and the wide range of specific circumstances in which they operate. However, given the potel.1tial diverted sales results identified in this report, it is possible that one or more of these small specialty stores may close as a result of Home Depot's opening. Stores that offer high quality products, good service, and large selection for items such as paint, flooring, appliances, and garden supplies may also be impacted but should remain competitive. Retailers often demonstrate their flexibility in responding to competitive threats by refocusing product lines, changing product mixes, or enhancing customer service. Previous CBRE Consulting case study research indicated this approach has benefited other independent home improvement retailers in communities when new area Home Depot stores opened. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 19 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS V. CUMULATIVE IMPACTS An additional charge of this study was to analyze the Home Depot Store in the context of other planned home improvement stores in the market areas. Because of increasing concerns regarding cumulative economic impacts of major retail developments, this chapter includes analysis of select other planned retail projects in the primary market area (City of South San Francisco). IDENTIFIED PROJECTS CBRE Consulting researched planned retail projects with identified tenants in South San Francisco (see Exhibit 25). The only proposed project in the primary market area that could compete with Home Depot is a Lowe's store planned for the 600 block of Dubuque Avenue, down the street from the proposed Home Depot. According to South San Francisco City Planning, both projects are at a similar stage of development and would open at roughly the same time. Therefore, it is assumed that Lowe's would be operational in 2008, the same year of the planned Home Depot Store. PRIMARY MARKET AREA CUMULATIVE SALES IMPACTS Exhibits 26 through 28 summarize the maximum diverted sales impacts resulting from the development of the proposed Home Depot Store as well as the proposed Lowe's store, using the same methodology as for just the Home Depot Store. These results, displayed in Table 6, indicate that assuming the development of Home Depot and Lowe's, at worst, $18.0 million in sales will be diverted away from existing primary market area retailers (see Exhibit 28). The diverted sales impact estimate is $18.0 million in Building Materials stores. If the Home Depot Store achieves total sales volume less than the level projected in this report, the cumulative sales impacts will be less. Type of Retailer Home Furnishings and Appliances Building Materials Garden Supplies Total (1) (1) Figures may not total due to rounding. (2) See discussion below. Source: Exhibit 28; and CBRE Consulting. Table 6 Maximum Cumulative Diverted Sales Planned Home Depot and Lowe's Stores City of South San Francisco 2008 Dollars (MIllions) Maximum Sales Diverted from PMA Retailers $0.0 $18.0 N/A(2) $18.0 New PMA Sales Base $32.0 $126.8 $8.4 $167.2 Diverted Sales as a Percent of Estimated Sales 0.0% 14.2% N/A 10.8% Garden Supplies. Since the Garden Supply stores impact analysis results indicate that more than 100 percent of sales would be diverted away from primary market area (City of South HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 20 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS San Francisco) retailers, it suggests that the Garden Supply category is probably served adequately in South San Francisco. However, due to data limitations explained in Chapter III, as well as the probable dispari'ly between available goods from existing garden supply retailers and those from Home Depot, it is difficult to assess the exact extent to which existing retailers would be impacted by Home Depot's Garden Supply sales. Any impact that does occur is likely to be spread evenly among existing stores; in the possible event that one small store were to close, the sales would likely be equally redistributed among the remaining stores. Moreover, it is likely that the entry of Home Depot and Lowe's would create sales attraction in this category to South San Francisco, but the extent of such attraction is difficult to quantify. Building Materials. The estimated $18.0 million in maximum diverted sales is equivalent to 78,000 square feet of space devoted to building materials sales assuming the standard $300 per square foot in sales, inflated to 2008 dollars at 3.0 percent per year. Limitations on population growth in the primary and secondary market areas make it unlikely that this much demand could be generated through population growth. Thus, it appears approximately 78,000 square feet of space devoted to building materials in the primary market area, at a maximum, is at risk of closing. However, as with Garden Supply category, it is likely that any impact that does occur among building materials stores is likely to be spread evenly among existing stores. However, in the possible event that perhaps one store closes, the sales would likely be equally redistributed among the remaining stores. The next chapter will explore the extent to which the impacts of the proposed Home Depot Store could result in urban decay in the primary market area. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 21 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS VI. URBAN DECAY DETERMINATION The purpose of this chapter is to assess the degree to which development of the Home Depot Store will or will not contribute to urban decay in the primary market area (City of South San Francisco). This includes impacts associated with the cumulative impacts of the Home Depot Store and other planned primary market area retail developments. Urban decay could theoretically result from development of the Home Depot Store and other known primary market area planned retail developments, but only if they cause other stores to close and real estate market forces prevent those spaces from being re-tenanted and they subsequently fall into physical disrepair. This chapter discusses market findings relative to what these impacts might be and their blight implications. STUDY DEFINITION OF URBAN DECAY For the purpose of this study, urban decay is defined as physical deterioration that is so prevalent and substantial it impairs the proper utilization of affected real estate or the health, safety, and welfare of the surrounding community. Physical deterioration includes, but is not limited to, abandoned buildings and industrial sites, boarded doors and windows, extensive gang or offensive graffiti painted on buildings, dumping of refuse or overturned dumpsters on properties, dead trees or shrubbery and uncontrolled weed growth or homeless encampments. ApPROACH TO DETERMINING URBAN DECAY POTENTIAL CBRE Consulting engaged in several tasks to assess the probability of urban decay ensuing from development of the Home Depot Store or the identified cumulative store impacts. These tasks revolved around assessing the potential for closed primary market area (City of South San Francisco) store spaces, if any, to remain vacant for a prolonged period of time or to be leased to other retailers within a reasonable marketing period. Several commercial real estate brokers active in the primary market area (City of South San Francisco) were contacted regarding the health of the area's retail market and the depth of prospective demand for retail space. The purpose of this research was to determine if sufficient retailer demand exists to absorb vacated space in the event existing primary market area (City of South San Francisco) retailers close due to the negative impacts of the Home Depot Store. RETAILER DEMAND IN THE PRIMARY MARKET AREA (CITY OF SOUTH SAN FRANCISCO) CBRE Consulting conducted telephone interviews with three real estate brokers experienced in the South San Francisco market. In the course of the interviews, the brokers shared some proprietary information with CBRE Consulting. As a professional courtesy, and upon their request, the overall gist of this information is summarized below, but not the detail. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 22 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS Market Characterization The real estate brokers contacted for this study characterized the South San Francisco retail market as a second-tier market, with a lack of new space and generally lower rental rates than surrounding areas. They indicated that the retail market is considered less desirable than the neighboring communities of San Bruno, Burlingame, Colma, and Daly City. Much of the retail space is owned by just a few owners, and deferred maintenance on existing space is noticeable when driving through the market. One broker mentioned that South San Francisco was considered an unattractive address for retailers, while indicating that it lacked "destination" retail establishments, with the notable exception of Costco on EI Camino Real. For the most part, retailers in South San Francisco are "mom-and-pop" shops with local ties. Retailer Interest According to the real estate brokers interviewed, there is some demand for South San Francisco space by national retailers, particularly those interested in finding "value" locations with lower rents. One broker explained that South San Francisco is a market where value- based chains, such as Ross and Marshall's, would be interested in locating if the appropriate infill site could be found. The same broker indicated that the City's location between San Francisco and Burlingame/San Mateo made it unlikely that high-end retailers would be interested in the City. Retenanting Potential CBRE Consulting observed only one large vacancy in the South San Francisco market, an old Bell Market grocery store in a strip center at the corner of EI Camino Real and Westborough Boulevard. While this space has been vacant for an unknown amount of time, it was recently sold to an Asian-themed grocery store operator for re-use as a grocery store. According to brokers familiar with the market, retenanting vacant spaces in Sauth San Francisco can be challenging due to the market's status as a second-tier location. . One broker relayed his experience with a kidney dialysis center, which leased about 10,000 square feet in an existing shopping center in 2001. He suggest~d that this type of use would not typically occupy space in a shopping center in more desirable retail locations. Therefore, if any vacancies in traditional retail spaces were to result from Home Depot's opening, it could be difficult to find tenants to occupy the vacant space given the relative lack of demand and generally lower- quality product in South San Francisco. However, there is little precedent for re-tenanting large vacancies due to South San Francisco's lack of retail supply and low vacancy rate, leaving the prospects for such re-tenanting unclear. It should be noted that South San Francisco could become a more attractive location for retailers in the future if current development proposals come to fruition. In addition to Home Depot, Lowe's Home Improvement Warehouse is seeking approval in South San Francisco, and the Terrabay Specific Plan is expected to include substantial new retail square footage. If these projects are built, they could upgrade the City's image as a retail site and attract additional retailers to South San Francisco. URBAN DECAY CONCLUSION CBRE Consulting's retail market research indicated that the retail market in South San Francisco is challenged by a lack of high-quality space or destination tenants, two factors that have caused national retailers to locate in nearby cities with better space and a more HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 23 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS established retail landscape. In fact, many businesses in South San Francisco categorized as "retailers" were actually operating in light industrial space east of Hwy 101. This suggests that any retail spaces potentially vacated as a result of the Home Depot Store could sit vacant for some time before being re-occupied. It is possible, however, that value-based national retailers could seek out opportunities in South San Francisco where they could get more favorable lease rates than in neighboring cities. Further, the addition of Home Depot could serve to create a more favorable view of South San Francisco's retail market and help to attract additional retailers to South San Francisco. Additionally, the lack of large aggregations of retail space in South San Francisco (for instance, many retail businesses are operating in traditional industrial/flex space) makes it unlikely that large blocks of vacant space would result from the opening of Home Depot. In other words, smaller blocks of vacant retail space interspersed with other types of active/occupied buildings would be highly unlikely to add to urban decay or deterioration. South San Francisco has the largest industrial sub-market on the San Francisco Peninsula, with more than 24 million square feet of industrial space and a strong demand from the biotechnology sector. To the extent that the sales impacts discussed in this report cause businesses operating in industrial space to close, it is likely that industrial tenants could be found for those vacancies. Thus, CBRE Consulting concludes that the development of the Home Depot Store and the identified cumulative impacts will not contribute to urban decay in South San Francisco. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 24 NOVEMBER 2005 CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS ASSUMPTIONS AND GENERAL LIMITING CONDITIONS Field work for this study was completed in July 2005. Accordingly, CBRE Consulting assumes no responsibility for market events pertinent to the primary or secondary marketareas or the proposed Home Depot site occurring after that date. CBRE Consulting has made extensive efforts to confirm the accuracy and timeliness of the information contained in this study. Such information was compiled from a variety of sources, including interviews with government officials, review of City and County documents, and other third parties deemed to be reliable. Although CBRE Consulting believes all information in this study is correct, it does not warrant the accuracy of such information and assumes no responsibility for inaccuracies in the information by third parties. We have no responsibility to update this report for events and circumstances occurring after the date of this report. Further, no guarantee is made as to the possible effect on development of present or future federal, state or local legislation, including any regarding environmental or ecological matters. The accompanying projections and analyses are based on estimates and assumptions developed in connection with the study. In turn, these assumptions, and their relation to the projections, were developed using currently available economic data and other relevant information. It is the nature of forecasting, however, that some assumptions may not materialize, and unanticipated events and circumstances may occur. Therefore, actual results achieved during the projection period will likely vary from the projections, and some of the variations may be material to the conclusions of the analysis. Contractual obligations do not include access to or ownership transfer of any electronic data processing files, programs or models completed directly for or as by-products of this research effort, unless explicitly so agreed as part of the contract. This report may not be used for any purpose other than that for which it is prepared. Neither all nor any part of the contents of this study shall be disseminated to the public through publication advertising media, public relations, news media, sales media, or any other public means of communication without prior written consent and approval of CBRE Consulting. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 25 NOVEMBER 2005 EXHIBIT 1 ESTIMATED MAl0R PRODUCT LINES AND DISTRIBUTION OF SALES PROPOSED HOME DEPOT STORE CIlY OF SOUTH SAN FRANCISCO 2008 Home Furnishings and Appliances Flooring Fashion Plumbing, Cabinets Appliances Building Materials lumber and Building Materials Hardware Plumbing and Electrical Supplies Paint, Glass, and Wallpaper Garden Supplies Nursery/Outdoor Fashion Carpet, vinyl, laminate, hardwood, tile flooring, ceiling tiles Cabinets, countertops, vanities, bath fixtures Small and major home appliances Dimensional lumber, siding, fencing, roofing, insulation, concrete Fasteners, bolts Pipes, faucets, water heaters, fixtures, bulbs, ceiling fans Paint, caulk, prep tools and supplies, wallpaper, drapery hardware Plants, fertilizer, patio supplies Percent of Sales 2 20% 63% 17% Notes: (1) As categorized by the California State Board of Equalization. (2) Estimates made by CBRE Consulting based on previously-provided sales information from Home Depot. Sources: Home Depot, USA, Inc.; and CBRE Consulting. P:\2005\ 1005060 Home Depot South SF\Exhibits\[E - , SSF leakage Analysi~ 20-Sep-05 wo ~U o V') 1-- V')U V')I-Z LLJO~V') ...Jc..u..~ N~~Z::S I- ...J iiiOw~O :c~~:c0 C15~:c~~ i=oOO V')WV')N LLJV') ou.. c..O ~~ c..U ~ III, ... ,0) m - '~'C 'Ct/) E- ~.:: ---2 J:l~ co 'Cl o IO~ co o C')~ 10 bIT ,,0-..-'ClC') 'Cl1O..-100- C't 0, 'Cl, 'Cl, Il"l.. ......-C')"M "00-"'<1" N 0-'<1" "'<I" C')~ 'Cl' a:; '<1"' C')' ..- bIT bIT bIT C') bIT t.'7 N N '<I" bIT ?f!. ?Ie ?Ie ~I?fi- 1OC')'Clo-M Nr-r- ...0 '.i '<I" 0- " &0 N '" ...!!! .!!1 o c.. Oi: a. Oi ~ CD ::l 0.. "0 V') 0 ~ ~ 'C..9- .S1o OJ .~ 'C e -03: ~",;:g .2-0 ..o'C::l we III .C co -0 0 mCD-o e' 'C-e o~_ V').Je 0 ~ OJ -2 .E ~<L..oe"'o ... CD >.- v - tiCll ~..o ~ ..0 _'.D. .- E L.. 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III CD Q o III CD E E 0 o J: I~ CD 0 ...cll'l 1-8 l/) :::::- CD Il'l U 0 L.. 0 ::l N o .....- V)Q..: Exhibit 3: Primary and Secondary Market Areas Primary Market Area Secondary Market Area KM W+E S Mil. This map contail\l information from SO~ we. beli~ to be reliable, but w. make no rap...-nlafKm, warranty or guaranty gf its accuracy. This. map.. publish.! for the us. of C8Rf and its dienta only. R.distribution in whoI. or part to any third party without the prior written ca"s.ant of CBRE ia strictly ProNDned. C. 2005 CB Richard Blis, All Rights R_...-..d. Sources: CaRE Mapping S.,..,;cas fSn) 58~467.; Clarita., Inc./GOT. Inc. MapFiles\Work2005\86272.wor 8130/2005 CBRE CB RICHARD ELLIS ~ ~l>O: =-< :.2~ Ol>O: t~o ~:::E N _1-:::l~0 """,<N J:~OO CiSzz8 Q8N ~~ :::lo c..Z 0< c..~ ~ ii2 c.. ~ ~ 0- ci ~r::e.?f!.?f!.?f:. 66~ci6 ~ C! ~~"#.rJetfl. C!C!C!ciC! ~ '<I" ci ?f!."#.rf!.~rf!. '<I"LOLOLOLO cicicicici ~ N ci f:!ef:!!.?!!.*-?fe. 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"E II> E c: jg 5 (:l C II> < >- C '" '0 c: .Q c .u o ~ C .Q c .t:! o ::l r::r W '0 "'C C o '" II> C Vi C .c ~ o U UJ ~ :0 :E )( UJ ./ Ll- II) -= "S o '" "0 CD o II> E o J: o -0 o ltl o o ./ ltl o o N ./ 0..: in CD u 5 o II) EXHIBIT 6 ESTIMATED SALES OF CLOSING LEVITZ STORE (1) CITY OF SOUTH SAN FRANCISCO 2008 ESTIMATE n.... ... ... . Store.Assumptlons ... . .. . .. . Amount Square Feet of Levitz Store 156,700 Estimated Sales Per Square Foot 2003 Dollars (2) 2008 Dollars (3) $176 $204 Total Estimated Annual Sales, 2008 $31,971,852 Notes: (1) The Home Depot is planned to replace an existing Levitz store at 900 Dubuque Avenue in South San Francisco whose sales are currently captured in the Home Furnishings and Appliances category. (2) Retail Maxim's Perspectives on Retail Real Estate and Finance, July 2004 (2003 data) for furniture stores. (3) Calculated sales estimates assumes 1.2 percent inflation between mid-year 2003 and 2004 and 3.0 percent thereafter. 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C :l:: E ~ >..0 "'-0 ~ .~ ,_ N ... ... c.. 0> -t:i o 0 ::l ... t:i 0 0-5 0> 0> -=.0 1::-0 N ~ ~'~ 13 ~ ~ 0> ~U")lG.S:!ai IIIN 0 uO.u ~ ...... U) C :O:O-oOlc.. :E ...c: t:i0> -= Qj x X III ~ W W .~ 0 c E E e Ol E ... ... c..::C OlOl OOl ~11; 1; lE .~ -= _O::O:::I-c..o O;:::--NM"Q.."E Z _ _ _ 0 ._ U") o I > o Z I "" ~ ';;;' ti c a. .E Ql .2: "0 "5 E ::> u r--.- N w in ~ N o ..: '" 'iii >- C c <: Ql Cl o -'" o Ql -J u.. II) II) -I wi /' .l!! :0 :..c x w ...... u.. II) ~ :; o II) 0)0 I:: a. ::E CD ::l 0 III Ql e: E o 0 U :c W 0 0::: cg I:D U"l U 8 ~ 0> ...... u U"l ... 0 ::l 0 o ~ I./') a.: .~ DKS Assoclatesi TRANSPORTATION SOLUTIONSI May 2, 2005 Jeff Nance Senior Associate Greenberg Farrow Architecture 15.101 Red Hill Avenue, Suite 200 Tustin, CA 92780-6501 Subject: Home Depot Parking Study PI A No. 05110-000 Dear Mr. Nance: DKS is pleased to present this letter that addresses the expected parking ratio for the proposed Home Depot in the City of South San Francisco based on existing parking demands of three existing Home Depot store locations in the San Francisco Bay Area. The three Home Depot store locations observed are: · EICerrito Home Depot at 11939 San Pablo, EI Cerrito, CA · San Rafael Home Depot at 111 Shoreline Highway, San Rafael, CA · Hayward Home Depot at 21787 Hesperian Boulevard, Hayward/CA 1.0 Study Methodology The following survey methodology was employed in order to determine the appropriate parking demand for each site surveyed. Off-Street Lot - The number of parked vehicles and available spaces were counted in 30-minute intervals. 2.0 Data Collection In order to address the periods of particular concern, parking utilization surveys were conducted at the three Home Depot store locations in the month of April 2005/ during a typical weekday morning from 7:00-9:00 a.m. and afternoon from 4:00 p.m. to 6:00 p.m. and on a weekend midday from 11:00 a.m. - 1:00 p.m. . 1956 Webster Street Suite 300 Oakland, CA 94612-2925 (510) 763-2061 (510) 268-1739 fax www.dksassoclates.com May 2, 2005 Page 2 of 4 3.0 Existing Parking Utilization Based on. information provided by Greenberg Farrow, the three Home Depot. stores studied currently provide (in average) a 4.31 parking ratio per 1,000 square feet of building area including the garden center. Table 1 shows a breakqown of the building area and parking required and provided for each of the sites studied. i~ ~'"~~~--~";~,,,,r;r.v~~-:~'0"':"'~";:~l\"~'2~~~~"'-):","'~~~;~m:r~~'~~~:;~ ,0. f , ' , ). '.. q~~,\f'~~l'~ '11 " , " - , ).."', .,". ~ ," . ~ '" - +~rr,,~/II~__~ l~_ ~ "" t '" ~ '. *r '~~~'+'~ ,t,' . .':.' ,. .,'. i~]!'cimtI0i~~if~i:"ift;'l,.i~(::r~hn(;'~('J~),~4i~E{1~1~f@ij"""'" ,y....".,.', ':~ ~~~ +&:,~~~ ~~_~~~d~ ~d;:L~~~w~~~'~~;~!::i~;~~:'~ 2~:f~~t~~~:~~~~~~~.: ~~7~i;~~~:2:~~~+L~~~~~~ '4:~~~,~~~~ Location Building Area (SF) Home Garden De at Center Parking Required Parking Provided1 Spaces 1. EI Cerrito 100/000 29,590 5002 2. Hayward 107,920 23,928 444 3. San Rafael 102/190 22,180 5113 1 Parking provided based on field visits conducted in April 2005. 2 The Garden Center had not been induded in parking requirement atthe time when HD was built. 3 The Garden Center had not been induded in parking requirement. 4 per local city zoning code. Based on the parking utilization surveys/ parking at each of the three Home Depot stores is underutilized and parking is generally available; Table 2 showsthe number of parking spaces provided and the maximum parking utilization observed during the weekday A.M. and P.M. peak hours and weekend midday peak hour. .' . May 2, 2005 Page 3 of 4 ~~~~~~~7:~:~~~, , .. .. . . , l~f~D~l:"".~. . ..' . . . , ',' ;".~""': ~, "',,- A .~ t~h ~iI'~M_:~~f ~'~\:p':..:d.> 't~'... ~ :;>., ~ - ~>>' I ....,.,'" .{;:,~~~ " . <" ': . ' .'. ki~p~,ihll~.~,'ql~!;I~I,!ll?"" '... ", '} '".' ,.0;'" I : ~::k~:~=~~~~~-:~~~~"I~~::~:~1t:~~::~'~=~~~:~~:~:~~~ Location Parking Weekday Weekend Provided AM I PM Midday 1. EI Cerritoa 439 199 204 257 2. Haywardb 533 212 151 254 3. San Rafaelc 538 244 228 419 · Maximum demand OCOJrred at 9:00 a.m" 6:00 p.m. during the weekday and 12:30 p,m. during the weekend peak hours. · MaxImum demand occurred at 9:00 a.m., 4:30 p.m. during the weekday and 12:30 p.m. during the weekend peak hours. , Maximum demand OCOJrred at 9:00 a.m., "1:00 p.m. during the weekday and 12:30 p.m. during the weekend peak hours. Table 3 shows the parking ratios for each of the sites based on the maximum parking demand experienced at each of the sites studied. . Parking RatioC 1. EI Cerritoa 2. Hayward 3.. San Rafaelc 129/590 131/848 124,370 257. 254 419 1.98 1.93 .3.36 2.42 Average Parking Rqtio . Building Area Indudes the Garden Center. SF: Square Feet. · Maximum demand based on weekend midday peak hours. 'Parking ratio was calculated based on the maximum demand divided by the building area In 1,000 per square feet 4.0 Conclusion The proposed Home Depot in South San Francisco would consist of approximately 125,794 square feet (101/272 square feet for the Home Depot and approximately 24/522 square feet for the Garden Center). Based on the average parking ratio of 2.42 spaces per 1,000 square feet of building area calculated' for the three Home Depot stores studied/ the proposed Home Depot would require 304 spaces (2.42 x 125.794 = 304 spaces). .. l'" ..... May 2, 2005 Page 4 of 4 Based on the parking utilization surveys and parking demand analysis performed for each of the three Home Depot stores and as outlined in section 3.0 of this report; it is reasonable to consider that a parking ratio of 3.36 spaces per 1/000 square feet of building area for the proposed Home Depot in the City of South San Francisco would accommodate the parking demand anticipated. With the provision of 423 spaces (3.36 x 125.794 = 423 spaces)/ the proposed project would exceed the anticipated parking demand by 119 parking spaces. Please do not hesitate to contact me at (408) 292-9411 if you have any questions. Sincerely; ~,~ Mark E. Spencer/ P.E. Principal ~ t I Ii ~ . j .... .. ~ ~ =- r~' :: - 1 i t t I l ',,- r.., - .. ~ I r/ 1I r.., - 1::1 .... lIB>> I I 11 1 . t i ~ l~: // ill;:" IlIt ~ I ! <( Ui ........ ~ 02 (j s: w U~ L.UCJ) :J- zU >Z ~<( ~~ :JLJ.. CO 5Z 8<( O'\CJ) I I- :J o CJ) t1 c 3!: " z ~ c ~ i ~~ ~~I ~~~~~h Uli!~M 00 ~J~~U i~nufH~~~~ ~i~~nhdBh _NC")..Ift.....CO..5!::~:! ccccccccccccc Q ~ ~i .( ~ ~~ ~u ... ~~~ iii 0 ! 8 ;nnh I! II I~~ ~ h~ I~~i~~ UtltU !R!~U ~"'~&i~~ ill!!; Q D D tilfi I Q \J i i !Y :d~e~ I;tCC Ild8~~~ Ii U~~ B ~ iil ~ ~-!\!e ;!; I!!~:!l" I~ ~1Ii~~ R~; .... d)h~U did~~ II ~ !! 5 II 00 !~ i I! II B 11111 111111 II ~ ii i ! n i ~ ! I ~ ~ ::l!! :;) ~ III ""I ~J ~~. ~ fill!iH 8~UiUII ~!I ~ IU~IIH I ul ~ .~ '" N ~ r- ~~~~! 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