DATE: July 17, 2018
SUBJECT:
Title
NEW RESTAURANT DEVELOPMENT ON THE VACANT LOT ON FERRY LANDING ASSOCIATES LEASEHOLD LOCATED AT 1311 FIRST STREET IN THE CITY OF CORONADO
A) RESOLUTION ADOPTING A SECOND ADDENDUM TO THE FINAL ENVIRONMENTAL IMPACT REPORT FOR THE “CORONADO BOATYARD PLAN AMENDMENT - THE WHARF DEVELOPMENT” AND AUTHORIZING STAFF TO FILE A NOTICE OF DETERMINATION
B) RESOLUTION GRANTING CONCEPT APPROVAL TO FERRY LANDING ASSOCIATES, LLC. FOR UP TO TWO NEW RESTAURANTS AT FERRY LANDING PROJECT
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EXECUTIVE SUMMARY:
Ferry Landing Associates, LLC (FLA) currently has a 40-year lease with the San Diego Unified Port District (District) for an office building and two restaurant buildings located at 1311 First Street in the City of Coronado.1 FLA, as the project Applicant, has submitted an application for a bayside commercial development that would accommodate up to two new restaurants in one building (herein referred to as Revised Project) on the existing vacant lot on the FLA leasehold (Attachment A).
In 1989, a larger commercial development project, within which the Revised Project site is located, was analyzed pursuant to the California Environmental Quality Act (CEQA) in the Final Environmental Impact Report (FEIR) (SCH #88062222; UPD #83356-EIR-143; District Clerk Document No. 24647) for the “Coronado Boatyard Plan Amendment - The Wharf Development Project” (herein referred to as Wharf Development). The FEIR analyzed full-scale redevelopment including up to three full-service restaurants, other food and beverage services shops, retail and management office space, a marina, and an underground parking garage. On December 19, 1989, the Board of Port Commissioners (Board) certified the FEIR (Resolution No. 89-382; District Clerk Document No. 24647). In 1999, the first restaurant (Il Fornaio) was constructed. In 2008, an Addendum to the FEIR was prepared for the proposed construction of a second restaurant (First Addendum) (District Clerk Document No. 53309). However, due to market conditions, the second restaurant was not constructed at that time.
In October 2015, FLA submitted an application for the Revised Project to construct a one-story building with the option to operate up to two restaurants within. On January 12, 2016, the Revised Project was presented to the Board for preliminary project review. At that time, the Board authorized staff to commence the environmental review process pursuant to CEQA. A Second Addendum to the FEIR, dated July 2018, has been prepared to analyze changes to the Wharf Development project, and to document that none of the conditions in CEQA Guidelines Sections 15162 and 15163, triggering preparation of a subsequent or supplemental EIR, have occurred (Attachment B). The Second Addendum is appropriate under CEQA Guidelines Section 15164, and incorporates the updated and refined project description into the FEIR for the Board to consider and adopt. On July 12, 2018, the Final EIR and Second Addendum were provided to the Board of Port Commissioners in the Commissioners’ office and are available in the Office of the District Clerk for public review.
Furthermore, District staff recommends the Board adopt a resolution granting concept approval for the Revised Project.
RECOMMENDATION:
Recommendation
New Restaurant Development on the Vacant Lot on Ferry Landing Associates Leasehold located at 1311 First Street in the City of Coronado:
A) Resolution Adopting a Second Addendum to the Final Environmental Impact Report for the “Coronado Boatyard Plan Amendment - The Wharf Development” and authorizing staff to file a Notice of Determination
B) Resolution granting concept approval to Ferry Landing Associates, LLC for up to two new restaurants at Ferry Landing Project
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FISCAL IMPACT:
The Board’s actions would not result in any direct fiscal impact to the District. Nevertheless, under two three-party agreements, FLA is solely responsible for the full cost of the CEQA and Project Management consultant services who perform services under the direction of District staff.
Compass Strategic Goals:
This agenda item supports the following Strategic Goals:
• A vibrant waterfront destination where residents and visitors converge.
• A Port that is a safe place to visit, work and play.
DISCUSSION:
Background
FLA currently has a 40-year lease with the District for approximately 170,029 square feet (sf) of land and 121,281 sf of water area located at 1311 First Street in Coronado. The lease requires FLA to construct office space as well as construct and operate two restaurant buildings. Currently, the FLA leasehold includes an 11,700-square-foot, one-story restaurant (Il Fornaio); a 6,500-sf two-story office building; and a surface parking lot containing approximately 269 parking spaces. The second restaurant building has not been constructed.2
In 1989, the FEIR for the Wharf Development project analyzed up to three full-service restaurants of 23,000 sf, other food and beverage shops of approximately 9,000 sf, and retail and management office space of 43,000 sf, for a total of approximately 75,000 sf. The FEIR was certified by the Board on December 19, 1989, by Resolution No. 89-382 (District Clerk Document No. 24647).
In July 1995, the “Ferry Landing Expansion” project was proposed to implement components of the redevelopment project analyzed in the FEIR. On November 18, 1997 a Coastal Development Permit (CDP) (CDP-97-3) was authorized by the Board for the Ferry Landing Expansion (Resolution Number No. 97-248; Clerk Document No. 36851), which specifically allowed for the construction of two restaurant buildings with a total of approximately 18,500 sf, approximately 6,500 sf of office space, parking for approximately 255 vehicles, rip-rap and revetment shoreline protection, extension of the bicycle path along the waterfront, and landscaping improvements. In 1999, the first restaurant (Il Fornaio) was constructed and included an approximately 11,700 sf, one-story building. Additionally, a 6,500-sf two-story office building and surface parking lot containing approximately 269 parking spaces were constructed.
In 2008, a proposal was received to develop the second restaurant site and the First Addendum to the FEIR was prepared for the proposed construction of a second restaurant (First Addendum) (District Clerk Document No. 53309). Additionally for the proposed construction of the second restaurant an amendment to CDP-97-3 was prepared (CDP-2008-82; Clerk Document No. 53487). However, due to market conditions the second restaurant was not constructed and the proposed second restaurant site remains vacant to-date. The second restaurant was not constructed within the two-year timeframe set forth in the amended CDP as a condition for development, and as such, the CDP amendment is void. This is the site of the Revised Project.
In October 2015, FLA submitted an application for the Revised Project to develop the second restaurant site. The Revised Project includes a one-story restaurant building with the option to operate up to two restaurants within, as further described below. On January 12, 2016, the Revised Project was presented to the Board for preliminary project review. At that time, the Board authorized staff to commence the environmental review process pursuant to CEQA. A Second Addendum to the FEIR, dated July 2018, has been prepared to analyze changes to the Wharf Development project, and to document that none of the conditions in CEQA Guidelines Sections 15162 and 15163, triggering preparation of a subsequent or supplemental EIR, have occurred. The Second Addendum is appropriate under CEQA Guidelines Section 15164, and incorporates the updated and refined project description into the FEIR for the Board to consider and adopt.
In association with this agenda item, on July 12, 2018, the Final EIR and Second Addendum was provided to the Board of Port Commissioners in the Commissioners’ office and are available and are available in the Office of the District Clerk for public review for public review.
Revised Project
The Revised Project specifically includes the development of a one-story, approximately 7,500 sf restaurant building with outdoor seating areas and landscaping improvements on a vacant site. The proposed building would accommodate a total of approximately 300 guests, including approximately 190 indoor guests and approximately 110 outdoor guests, and would be approximately 23 feet in height. A covered 224 sf utility and trash area is proposed at the southeastern side of the building and an underground 3,000-gallon grease interceptor tank is proposed in the southeastern corner of the site, adjacent to the proposed utility and trash area. Parking demand for the existing office and restaurant development at the site, plus the Revised Project would be a total of approximately 197 parking spaces. As a result, the existing 269-space parking lot located south and adjacent to the project site is of sufficient size to accommodate the development. No changes to the current parking configuration are proposed with the exception of re-striping to include accessible parking stalls. Re-striping will not result in the loss of any stalls. The proposed landscaping includes grasses and low-water-use plants and palm trees. The palm trees would be located toward the parking lot and low-lying vegetation would be planted toward San Diego Bay. Existing overhead lighting located along the 15-foot-wide shoreline public walkway would be removed and replaced with low-profile bollard lighting along both sides of the walkway. The bollards will match the lighting output of the existing overhead lighting to allow for pedestrian and bicycle safety as well as uninterrupted views of the nighttime downtown San Diego skyline. Finally, three bio-filtration areas are proposed, including two at each entrance of the restaurant building and one between the outdoor seating area and the walkway.
The Revised Project would not encroach upon or impact the existing shoreline walkway in any way and public access around the site would be maintained. The Revised Project has been designed with two separate pedestrian entrances near the parking lot. Two outdoor seating areas are proposed between the restaurant and the existing 15-foot-wide public shoreline walkway. Two smaller outdoor seating areas are included along the western side of the building and in the southeastern portion of the project site. Bicycle racks would be installed at the southwestern portion of the site along the walkway and at the three existing concrete observation decks over the San Diego Bay.
Construction of the Project is expected to occur over nine months commencing in late 2018. Construction would occur in three phases: 1) preliminary earthwork; 2) foundation work; and 3) building construction and exterior site work.
Revised Project operations would involve full-service indoor and outdoor dining activities, similar to other restaurant activities in the immediate vicinity, such as at Il Fornaio. These activities include food and drink preparation for buffets or catered meals and traditional dining, seven days a week and year-round. Operations are anticipated to occur between the hours of 7:00 a.m. and 11:00 p.m., and the majority of customers are expected to patronize the restaurant in the evenings (e.g., after 4:00 p.m.).
Concept Approval
Pursuant to Board Policy No. 357, plans for new tenant development must be presented to the Board for approval if the project is estimated to cost more than $500,000. The Revised Project cost is approximately $1.7 million. The Revised Project improvements involve the construction of single-story 7,500 sf commercial building with outdoor seating areas and landscaping improvements. Staff recommends concept approval of the Revised Project.
Next Steps
If the Board approves the Second Addendum, a Notice of Determination will be filed with the County of San Diego Recorders’ Office and State Clearinghouse. Additionally, an amendment to CDP-97-3 or a new CDP will be issued when a future real estate agreement is presented to the Board for its consideration.
General Counsel’s Comments:
The General Counsel’s Office has reviewed the agenda sheet and attachments as presented to it and approves them as to form and legality.
Environmental Review:
In accordance with CEQA and its implementing guidelines, the original project which proposed up to 75,000 square feet of development was analyzed in the “Coronado Boatyard Plan Amendment - The Wharf Development Project” (Wharf Development) FEIR (UPD #83356-EIR-143; SCH #88062222). The FEIR for the Wharf Development was certified by the Board by Resolution No. 89-382 (District Clerk Document No. 24647) on December 19, 1989.
After the FEIR was certified, a portion of the Wharf Development was constructed on the site in 1999, including one of the three restaurants. In 2008, a First Addendum to the FEIR was prepared for the proposed construction of a second restaurant (District Clerk Document No. 53309). However, due to market conditions, the second restaurant was not constructed at that time.
In October 2015, a District Tenant Project Plan Application and Environmental Application were submitted by Ferry Landing Associates, LLC for the Revised Project. The Revised Project involves the implementation of a component of the overall Wharf Development and would result in a decrease of the type or amount of development analyzed in the FEIR. The Revised Project consists of landside improvements only, primarily involving the construction of one building (with up to two restaurants within) and some landscaping improvements.
The District has determined that the certified FEIR has continuing informational value with respect to the Revised Project and that none of the conditions in CEQA Guidelines Sections 15162 and 15163, requiring preparation of a subsequent or supplemental EIR, have occurred. Accordingly, additional environmental review is not required and the Second Addendum is appropriate under CEQA Guidelines Section 15164. The Second Addendum incorporates an updated and refined project description for the Board to consider and adopt. Staff reviewed the Revised Project and determined (1) the Revised Project is within the scope of the FEIR, (2) there have not been any substantial changes in the Revised Project or in the circumstances under which the Revised Project will be undertaken that would result in any new or more severe significant impacts or required mitigation measures not previously identified in the certified FEIR. The analysis included in the Second Addendum to the FEIR concludes that the Revised Project is smaller and less intense when compared to the Wharf Development and that the applicable mitigation measures identified in the Mitigation Monitoring and Reporting Program will reduce identified Revised Project impacts to less than significant. As such, pursuant to CEQA Guidelines Section 15164, and based on the information provided in the Second Addendum to the FEIR, the potential impacts of the Revised Project have been appropriately addressed in the FEIR. If the Board adopts the Second Addendum, staff will file a Notice of Determination pursuant to CEQA Guidelines Section 15094. Related to this agenda item, on July 12, 2018, the Final EIR and Second Addendum were provided to the Board of Port Commissioners in the Commissioners’ office and are available in the Office of the District Clerk for public review.
The proposed Board actions comply with Section 87 of the Port Act, which allows for the construction, reconstruction, repair, maintenance, and operation of public buildings, public assembly and meeting places, convention centers, parks, playgrounds, bathhouses and bathing facilities, recreation and fishing piers, public recreation facilities, including, but not limited to, public golf courses; and for all works; buildings; facilities; utilities; structures; and appliances incidental, necessary, or convenient for the promotion and accommodation of any of those uses. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board actions are consistent with the Public Trust Doctrine.
Finally, the proposed Board actions do not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit (CDP) Regulations because they will not result in, without limitation, a physical change, change in use or increase the intensity of uses. Therefore, issuance of a CDP, CDP amendment or exclusion is not required at this time, but will be required prior to construction. However, development within the District requires processing under the District’s CDP Regulations. Future development, as defined in Section 30106 of the Coastal Act, will remain subject to its own independent review pursuant to the District’s certified CDP Regulations, PMP, and Chapters 3 and 8 of the Coastal Act. The Board’s actions in no way limit the exercise of the District’s discretion under the District’s CDP Regulations. Therefore, issuance of a CDP, CDP amendment or exclusion is not required at this time.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Dana Sclar
Senior Planner, Development Services
Attachments:
Attachment A: Location Map
Attachment B: Second Addendum to the Final Environmental Impact Report for the “Coronado Boatyard Plan Amendment - The Wharf Development Project”
1. San Diego Unified Port District Lease to Ferry Landing Associates filed with the Office of the District Clerk as Document No. 36616.
2. For clarification, note that Peohe’s Restaurant located at 1201 1st Street is not included on the FLA leasehold.