Item Coversheet
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report 

July  9, 2024
PUBLIC HEARINGS

TO:

Honorable Mayor and City Council Members 
SUBMITTED BY:

Marnie R. Waffle, AICP, Principal Planner
APPROVED BY: 

Chip Rerig, City Administrator
SUBJECT:APP 24118 (Hofsas House, Inc.) - Consideration of an appeal of the Planning Commission's approval of Design Review application DR 24059 (Hofsas House, Inc.) associated Lot Line Adjustment and Coastal Development Permit for the demolition of an existing 38-room hotel and the construction of a new 38-room hotel, and Use Permit application UP 24060 for the hotel and associated accessory uses located on San Carlos Street 2 northwest of 4th Avenue in the Residential & Limited Commercial (RC) District. APN: 010-124-001-000 and 010-124-014-000 
RECOMMENDATION:

Adopt Resolution 2024-061 (Attachment 1) denying an appeal, determining that the Carmel Legacy Hotel Project is exempt from the California Environmental Quality Act (“CEQA”) and upholding the Planning Commission’s April 10th, 2024, approval of Design Review application DR 24059, Use Permit application UP 24060, associated Lot Line Adjustment and Coastal Development Permit for the Carmel Legacy Hotel Project which entails the demolition of the existing 38-room Hofsas House Hotel and the construction of the proposed new 38-room Carmel Legacy Hotel located on San Carlos Street 2 northwest of 4th Avenue. APN: 010-124-001-000, 010-124-014-000.

BACKGROUND/SUMMARY:

Executive Summary:

The project involves demolishing an existing 38-room hotel and building a new replacement hotel with the same number of rooms on the same site. In addition to the replacement of the existing hotel, the existing hotel’s surface parking lot would be replaced with structured parking, increasing the supply of on-site parking. The existing hotel includes ‘guest only’ accessory uses, including a pool, banquet room, on-site laundry, sauna, massage, and continental breakfast. The proposed hotel also includes several ‘guest only’ accessory uses, including a restaurant, café/bakery, spa and hair salon, gym/fitness center, and business center. An existing single-family residence located on-site will be converted into two apartments. The hotel's ‘guest only’ gym/fitness center and business center are also proposed to be located in the converted residence. On December 18, 2023, the Carmel-by-the-Sea Historic Resources Board determined the existing hotel was ineligible for listing on the local historic inventory. On December 18, 2023, the Board also determined that the single-family residence known as Donna Hofsas House is historically significant and added the structure to the Carmel historic inventory. Donna Hofsas House will be preserved and repurposed for accessory hotel uses, in addition to two residential apartments. No exterior changes to Donna Hofsas House are proposed at this time.

 

Background/Project Description:

Four residences were constructed on lots 7, 9, 11, and 12 on San Carlos Street, northwest of Fourth Avenue, between 1923 and 1933. ln 1943, the two-story residence on lot 9 was remodeled into apartments. Donna and Fred Hofsas purchased these properties in 1949 and created the Hofsas House complex of rental rooms and apartments. ln 1956, they demolished two of the residences (lots 7 and 12) to create a parking lot.

 

ln January 1957, Donna and Fred built a Bavarian-themed four-story, 25-unit motel and swimming pool designed by architect Robert Jones. Two of the pre-1957 cottages were remodeled and incorporated into the hotel's new design (lots 5 and 7). The reception area to the south of the hotel was one of the existing buildings, as evidenced by Robert Jones' site plan for the project (lot 9). This area was further enlarged to the south to create the Porte-cochere (portion of lot 11). A front-facing, clipped gable roof sweeps to the south to cover the Porte-cochere. Design features include wide, overhanging eaves with visible rafters, pink stucco with contrasting decorative half-timbering, front-gabled dormers, vertical diamond-paned windows, balconies with band-sawn railings, and floral murals by Maxine Albro.

 

ln 1960, Donna Hofsas House, a single-family dwelling sporting a hyperbolic-parabola roof (aka modern gull-wing roof), was constructed on a portion of the larger hotel property (lots 8 and 10) fronting Dolores Street and served as the hotel manager's house. The home was evaluated for historical significance in 2002 and again in 2023 when it was officially added to the Carmel Historic Inventory.

 

ln 1968, Donna Hofsas commissioned the eight-unit detached North Wing on lots 1 and 3 (front San Carlos Street) after demolishing two apartment buildings on those parcels. The north wing also expresses the Bavarian theme featuring wide, overhanging eaves, clipped gables, pink stucco, decorative half-timbering, gabled dormers, and band-sawn railings.

 

As it is known today, the Hofsas House Hotel occupies a 36,200 square foot building site comprised of two legal lots of record, an 8,000 square foot lot (Block 34, Lots 1 & 3, APN 010-124-001) and a 28,200 square foot lot (Block 34, Lots 5, por. of 7, por. of 8, 9, 10, por. of 11, 12, 14, APN 010-124-014). The hotel is comprised of 38 guest rooms and includes an outdoor pool, banquet room, on-site laundry, sauna, massage, and continental breakfast. The single family residence known as Donna Hofsas House is located on the larger of the two parcels, fronting Dolores Street.

 

The hotel buildings were evaluated in 2023 for historical significance, and on December 18, 2023, the Historic Resources Board adopted a Determination of ineligibility for the hotel. No appeals were filed, and the decision became final on January 10, 2024.

 

The applicant proposes demolishing the 38-room Hofsas House Hotel and building a new replacement hotel, Carmel Legacy Hotel. There would be no increase in the number of hotel rooms.

 

On April 10, 2024, the Planning Commission adopted Resolution 2024-026-PC, approving a Design Review, Lot Line Adjustment, and associated Coastal Development Permit to demolish the existing 38-room Hofsas House Hotel and construct the proposed new Carmel Legacy Hotel with the same number of rooms on the same site (Attachment 2). The Planning Commission also adopted Resolution 2024-027-PC, approving a Use Permit for the proposed new Carmel Legacy Hotel and several accessory uses (Attachment 3). The Use Permit approval also includes converting the historic single-family Donna Hofsas House residence into two apartments and accessory hotel uses.

 

On April 24, 2024, Neal Kruse, on behalf of the Carmel Preservation Association, filed an appeal of the Planning Commission’s approval of the Use Permit, citing a failure to assess the project's environmental impacts under the California Environmental Quality Act (CEQA) and the use of a Class 32 Categorical Exemption for infill development (Attachment 4). On May 23, 2024, EMC Planning Group, on behalf of the project applicant, submitted responses to the appeal (Attachment 5). The applicant’s attorney, Anthony Lombardo, also provided a response letter on June 25, 2024 (Attachment 6).

 

The question for the Council is whether or not the project to replace the existing 38-room hotel, as approved and conditioned, is categorically exempt from the California Environmental Quality Act (CEQA). The following section provides an overview of CEQA and the staff analysis supporting that the project qualifies for one or more categorical exemptions. The Planning Commission found the project categorically exempt from CEQA under Class 32 (Infill Development Projects) when approving the project on April 10, 2024. Staff also contends that the project is categorically exempt under Class 2 (Replacement or Reconstruction) for the replacement hotel and Classes 3 and 31 for the repurposing of the historic Donna Hofsas House. The identification of more than one categorical exemption is allowed under CEQA and can be considered by the Council during its review of the project on appeal.    

 

Staff Analysis:

 

What is CEQA?

The California Environmental Quality Act (CEQA) (see-kwuh) “generally requires state and local government agencies to inform decision-makers and the public about the potential environmental impacts of proposed projects and to reduce those environmental impacts to the extent feasible. The laws and rules governing the CEQA process are contained in the CEQA statute (Public Resources Code Section 21000 and following), the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 and following), published court decisions interpreting CEQA, and locally adopted CEQA procedures.” (https://opr.ca.gov/ceqa/getting-started/)

 

What are CEQA categorical exemptions?

Section 21084 of the Public Resources Code requires the CEQA Guidelines to include a list of classes of projects which have been determined not to have a significant effect on the environment and which shall, therefore, be categorically exempt from the provisions of CEQA. In response to that mandate, the Secretary of the Natural  Resources Agency has found that thirty-three classes of projects do not have a significant effect on the environment, and they are declared to be categorically exempt from the requirement to prepare an environmental document.  Those 33 classes of categorically exempt projects are found in CEQA Guidelines Sections 15301-15333.   

 

Each Class includes a description and specific criteria that must be met in order for the exemption to apply. Some of the classes also include examples of the types of projects that are categorically exempt from CEQA; however, the list is not exclusive.  Additionally, the Guidelines also include “exceptions to the exemptions” found in CEQA Guidelines Section 15300.2, which include several unique conditions that, when met, can disqualify a project from reliance on a categorical exemption.

 

The following section provides a detailed analysis of how the entire project qualifies for both the Class 2 and Class 32 categorical exemptions and how the component of the project that entails the conversion of the Donna Hofsas House also qualifies for both the Class 3 and Class 31 categorical exemptions and also demonstrates why none of the exceptions to the exemptions apply. 

 

The Project falls under the Class 2 Categorical Exemption in CEQA Guidelines Section 15302 for the Replacement/Reconstruction of Existing Structures

 

The Class 2 categorical exemption applies to projects proposing the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced.

 

The 38-room Hofsas House Hotel occupies a 36,200 square foot building site comprised of two legal lots of record, an 8,000 square foot lot (Block 34, Lots 1 & 3, APN 010-124-001) and a 28,200 square foot lot (Block 34, Lots 5, por. of 7, por. of 8, 9, 10, por. of 11, 12, 14, APN 010-124-014). The Hofsas House Hotel is proposed to be replaced with the proposed Carmel Legacy Hotel. The proposed 38-room Carmel Legacy Hotel will be located on the same 36,200-square-foot site that is currently occupied by the Hofsas House Hotel and will serve the same purpose: to provide overnight lodging accommodations to visitors. The Carmel Legacy Hotel will have the same 38-room capacity as the existing 38-room Hofsas House Hotel.

 

The Project also falls under the Class 32 Categorical Exemption in CEQA Guidelines Section 15332 for In-Fill Development

 

Class 32 consists of projects characterized as in-fill development meeting the following conditions [(a)-(e)]:

 

(a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations.

 

General Plan Consistency.

 

Staff Response: The General Plan Land Use designation for the project site is Commercial/Residential. This land use designation provides for a mix of residential dwellings and a limited range of office and service uses in scale with the character of the community. Less intense commercial uses and visitor accommodations are also allowed. Mixed-use developments of commercial and multi-family residential uses at a maximum density of thirty-three (33) units per acre are allowed. This area is also appropriate for public service uses.

 

Applicable General Plan policies include the following:

 

P1-5 Preserve the development pattern established in the commercial area with a central core area of ground floor retail and service activities surrounded by a less intensive buffer area of residential, motels, offices, and other uses. (LUP)

 

Staff Response: The project site is located within the less intensive buffer surrounding the central commercial core where hotels/motels are an appropriate use. The project is consistent with this General Plan policy.

 

P1-17 Prohibit the creation of any additional motel units within the City.

 

Staff Response: The project is the replacement of an existing 38-room hotel, and the new hotel will have the same number of rooms. The project is consistent with this General Plan policy as no new/additional hotel units will be created as a result of the project.

 

P1-59 Preserve the existing land use pattern in the commercial district with retail uses limited to the core area at ground level surrounded by a buffer area of residential uses, motels, and offices that provide a transition to the residential district. Ensure that land use and design standards for these two areas remain coordinated. (LUP)

 

Staff Response: The project is located within a buffer area surrounding the commercial district where hotels/motels provide a transition to the residential district. The project is consistent with this General Plan policy.

 

Zoning Consistency

 

Staff Response: The zoning designation for the project site is Residential & Limited Commercial (RC). Carmel Municipal Code Section 17.14.010 (Purpose) states that the specific purpose of the RC District is to provide an appropriate location for permanent and transient residential uses, service and office uses, and limited retail uses that do not adversely impact the residential neighborhood. This district is intended to provide a transition and buffer between the more intense activities in the CC and SC districts and the less intense activities in the R-1 and R-4 districts. The existing Hofsas House Hotel is an establishment offering lodging to transient patrons for periods of less than 30 days (a transient residential use). The proposed Carmel Legacy Hotel would replace the existing Hofsas House Hotel and will continue to offer lodging to transient patrons for periods of less than 30 days and there would be no increase in the number of rooms.

 

As described in the April 10, 2024, staff report to the Planning Commission (Attachment 7), the project is consistent with all applicable zoning regulations, including, but not limited to, building height, floor area, building coverage, setbacks, and parking. Further, the project meets the R-1 design objectives.

 

(b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses.

 

Staff Response: The project site is located between the west side of San Carlos Street and the east side of Dolores Street, north of 4th Avenue, within the City of Carmel-by-the-Sea city limits. The project site area is 36,200 square feet, which is 0.83 acres and well below the 5-acre maximum for this criterion. The project is substantially surrounded by urban uses as follows:

 

East: San Carlos Street and multi-family residential.

The project site is located near the intersection of San Carlos Street and Camino Del Monte Avenue. To the east of the roadway are the RC District and the Pine Terrace Condominiums, a multi-family residential development.

 

West: Hotel and Dolores Street/single-family residential.

Adjacent to a portion of the west property line is the RC District and another hotel known as Carmel Country Inn. The remainder of the west property line is adjacent to Dolores Street. To the west of Dolores Street is the R-1 District and single-family residences.

 

North: Unimproved 3rd Avenue Public Right-of-Way and single-family residential.

The project site abuts an unimproved portion of 3rd Avenue between San Carlos Street and Dolores Street. To the north of this area is the R-1 District and a single-family residence.

 

South: Hotel

Adjacent to the south property line is the RC District and the Svendgaards Inn Hotel.

 

(c) The project site has no value as habitat for endangered, rare, or threatened species.

 

Staff Response: The project site is fully developed with hotel and accessory buildings, a pool, and asphalt parking areas. The site is not located within an Environmentally Sensitive Habitat Area (ESHA) and has no value as habitat.

 

(d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.

 

Staff Response:

 

Traffic. Hexagon Transportation Consultants, Inc. prepared a memorandum (VMT and Parking Assessment for the Proposed Legacy Hotel Carmel in Carmel-by-the-Sea, California) (“VMT analysis”) dated November 27, 2023 (Attachment 8), for the proposed project to determine whether the project would result in a significant vehicle miles traveled (VMT) impact. The City of Carmel-by-the-Sea has not adopted a VMT policy, and therefore, the general practice is to follow the Governor’s Office of Planning and Research (OPR)’s Technical Advisory on Evaluating Transportation Impacts in CEQA (December 2018). Per these guidelines, there are several categories of projects that could be presumed to have a less than significant VMT impact or be screened out of a VMT analysis. Screening Threshold for Small Projects (projects that generate or attract fewer than 110 trips per day generally may be assumed to cause a less than significant transportation impact.

 

The existing hotel has 38 rooms, and the proposed hotel would have the same number of rooms. Hexagon Transportation Consultants, Inc. concluded that the project would not generate more vehicle trips beyond what is currently generated by the existing hotel. Additionally, the project proposes to offer electric buses and limousine services to shuttle guests to and from local destinations in addition to the existing shuttle services that provide transportation to and from the Monterey airport. Last, the additional amenities provided within the project, such as a restaurant, café, and spa, would be limited for use by hotel guests only and thus would reduce the need for guests to make trips outside the hotel grounds, further reducing VMT.

 

All projects within the City are required to submit a Construction Management Plan before the issuance of a building permit. The plan is reviewed and approved by the Community Planning & Building Director in consultation with the Building Official. The plan must include construction staging, truck haul routes, traffic control measures for material deliveries, contractor parking, project scheduling, construction hours, building materials storage, erosion control, and construction best management practices.

 

Noise. All projects in the City are required to comply with General Plan policy P9-4, which ensures that construction activities are managed to minimize overall noise impacts on surrounding land uses, and policy P9-17, which enforces state laws regarding unmuffled or improperly muffled motor vehicles. Additionally, all projects must comply with Carmel Municipal Code Section 15.08.180, which sets forth hours of construction as follows,

 

For projects requiring a building permit, the permitted hours of construction shall be from 8:00 a.m. to 6:30 p.m. Monday through Saturday unless other specified hours are approved or required by the Building Official or the Director of the Department of Community Planning and Building. These hours apply in all land-use districts. For the purpose of this section, the term “hours of construction” is defined as all times when builders, contractors, work crews, or other persons associated with the project are present on the property and engaged in any Class B noise activities related to or including construction.  

 

CMC 8.56 defines Class B noise as noise created or generated within or adjacent to residential property which is necessary and normally associated with property maintenance and construction. Class B noise includes, but is not limited to, noise created by power equipment and tools, appliances, workshops, vehicle repairs, and testing and construction projects.”

 

CMC 8.56.040 states, “It shall be unlawful to create and emit Class B noise as defined in this chapter between the hours of 6:30 p.m. of one day and 8:00 a.m. of the following day.”

 

Adherence to all applicable General Plan policies and regulations of the Carmel Municipal Code will ensure that the project will have a less-than-significant impact from temporary noise increases during construction.

 

Air Quality. The City of Carmel-by-the-Sea is located in the North Central Coast Air Basin, which is under the jurisdiction of the Monterey Bay Air Resources District (MBARD). The District has regulatory authority over stationary sources of air emissions, monitoring air quality within the air basin, providing guidelines for analysis of air quality impacts pursuant to CEQA, and preparing an air quality management plan to maintain or improve air quality in the air basin. The District has developed thresholds of significance for criteria air pollutants, which can be found in the District’s CEQA Air Quality Guidelines (2008). Emissions from construction activities represent temporary impacts that are typically short in duration. Per the Monterey Bay Air Resources District CEQA Air Quality Guidelines (https://www.mbard.org/ceqa), construction emissions could potentially impact local air quality if grading and excavation activities disturb more than 2.2 acres per day. Projects above this threshold may have a significant impact on air quality. The project site is less than 1 acre and has been disturbed by previous grading activities. The project is below the 2.2 acres of grading per day threshold and would not result in a significant impact on air quality.

 

A standard city requirement for all construction projects is the submission of a hazardous materials waste survey in conformance with the Monterey Bay Air Resources District. The identification of hazardous substances such as lead or asbestos is subject to State regulations for handling and disposal during construction.

 

Asbestos: The District is also responsible for regulating uncontrolled emissions of asbestos through implementation and enforcement of the federal National Emissions Standard for Hazardous Air Pollutants (NESHAP) for Asbestos and MBARD Rule 424. Prior to commencing any activity, a third-party California Certified Asbestos Consultant (CAC) is required to complete a thorough inspection for the presence, quantity and categories of asbestos-containing material (ACM). An asbestos survey is required for all renovations or demolitions prior to start of work. A survey is required regardless of the age of the building. The NESHAP requires that regulated asbestos-containing materials be removed under controlled conditions prior to demolitions or renovations so that asbestos fibers are not released into the air. Cal-OSHA requires that employees be trained before removing asbestos-containing materials. Contractors with specialized asbestos training and who are registered with Cal-OSHA must be utilized for asbestos removal projects. Contractors without special asbestos training must ensure that the job site is free of asbestos-containing materials before starting renovation or demolition work. The NESHAP requires that asbestos-containing waste materials be sealed in leak-tight, properly labeled containers and disposed of only at approved sites.

 

Further, the applicant reached out to MBARD for a statement on potential health impacts from the project, and MBARD confirmed there should be no adverse impact on public health if MBARD’s MESHP and Rule 424 and 439 requirements are satisfied (Attachment 9). The project will have a less-than-significant impact on air quality from construction emissions.

 

Water Quality. All projects within the City are required to comply with Carmel Municipal Code Chapter 17.43 (Water Quality Protection Ordinance), which protects and enhances the coastal waters in accordance with policies in the City’s Local Coastal Plan, the California Coastal Act, and the City’s National Pollutant Discharge Elimination System (NPDES) Phase II Permit requirements. At the construction phase of development, Section 17.43.030 requires an erosion and drainage control plan to be prepared and submitted. The plan includes site-specific erosion control measures, including controls on grading, best management practices (BMPs) for staging, storage, and disposal of construction materials, design specification of sedimentation basins, and landscaping/revegetation of graded or disturbed areas. The project will comply with Carmel Municipal Code Chapter 17.43 and all BMPs (Attachment 10) and will have a less-than-significant impact on water quality.

 

(e) The site can be adequately served by all required utilities and public services.

 

Staff Response: The project site is in a heavily developed urban area currently served by all required public utilities and services.

 

The Project’s Proposed Conversion of the Donna Hofsas House also falls under the Class 3 and Class 31 Categorical Exemptions in CEQA Guidelines Section 15303 for the Conversion of Existing Small Structures and Section 15331 for the Preservation of Historical Resources.

 

Class 3 consists of the conversion of existing small structures from one use to another, where only minor modifications are made to the exterior of the structure. Donna Hofsas House is proposed to be converted from a single-family residence to a two-family residence with accessory ‘guest only’ hotel uses, including a gym/fitness center and business center. No exterior modifications to the structure are proposed.

 

Class 31 consists of projects limited to rehabilitation, restoration, preservation, or conservation of historical resources in a manner consistent with the Secretary of the Interior’s Standards for the Treatment of Historic Properties. Donna Hofsas House is proposed to be rehabilitated and preserved. At this time, only interior remodeling is proposed and interior modifications are not subject to the Secretary of the Interior’s Standards.

 

None of the Exceptions to the Exemptions Apply.

The following is a list of exceptions to categorical exemptions. If any of these exceptions apply, a project cannot be found categorically exempt from CEQA.  As demonstrated below, none of the exceptions apply to this project.

 

Location. Classes 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located – a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant. Therefore, these classes are considered to apply all instances, except where the project may impact on an environmental resource of hazardous or critical concern where designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local agencies.

 

Staff Response: As discussed above, the categorical exemptions applicable to the project include Class 2 (Replacement or Reconstruction), Class 3 (New Construction or Conversion of Small Structures), Class 31 (Historical Resource Restoration/Rehabilitation), and Class 32 (Infill Development Projects). This exception does not apply to categorical exemptions under classes 2, 31, and 32. The Class 3 exemption is limited to the repurposing of the historic Donna Hofsas House from a single-family residence to two apartments and accessory hotel uses, including a gym/fitness center and business center. No exterior modifications are proposed for Donna Hofsas House and the structure and its vicinity are not located in an area that has been designated, precisely mapped, or officially adopted by federal, state or local agencies as an environmental resource of hazardous or critical concern. This exception does not apply to the project.

 

Cumulative Impact. All exemptions for these classes are inapplicable when the cumulative impact of successive projects of the same type in the same place over time is significant.

 

Staff Response: There is only one project: the demolition of a 38-room hotel, the construction of a new hotel with the same number of rooms, and the conversion of an existing single-family dwelling into two apartments and accessory hotel uses. No successive hotel replacement/reconstruction projects are proposed, so this exception does not apply.

 

Significant Effect. A categorical exemption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances.

 

Staff Response: The project includes the replacement of an existing 38-room hotel with a new 38-room hotel. The project site has a General Plan land use of Commercial/Residential and is located in the Residential & Limited Commercial (RC) District, which specifically identifies hotels/motels as an appropriate transitional use from the commercial core to the single-family residential area. Many hotels are located in the RC district and in fact two hotels abut the project site, one to the south and the other to the west. It is not unusual that a hotel would be located in the RC District. The established general plan land use designation and the zoning designation both place the RC District adjacent to the Single-Family Residential (R-1) District. Hotels are considered a transient residential use and are appropriate near single family residences. Further, the Carmel Municipal Code recognizes existing hotels in the R-1 District, allowing them to be reconstructed further demonstrating that the adjacency of hotels to residences is not unusual. This exception does not apply to the project.

 

Scenic Highways. A categorical exemption shall not be used for a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. This does not apply to improvements which are required as mitigation by an adopted negative declaration or certified EIR.

 

Staff Response: The project site is bound by the intersection of San Carlos Street and Del Monte Avenue to the east and Dolores Street to the west. An unimproved portion of the 3rd Avenue right-of-way is to the north, and 4th Avenue is to the south, although the project does not abut 4th Avenue. None of these roadways are designated as state scenic highways. This exception does not apply.

 

Hazardous Waste Sites. A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code.

 

Staff Response: Government Code Section 65962.5 requires the Department of Toxic Substances Control to submit a list of (1) All hazardous waste facilities subject to corrective action pursuant to Section 25187.5 of the Health and Safety Code. (2) All land designated as hazardous waste property or border zone property pursuant to former Article 11 (commencing with Section 25220) of Chapter 6.5 of Division 20 of the Health and Safety Code. (3) All information received by the Department of Toxic Substances Control pursuant to Section 25242 of the Health and Safety Code on hazardous waste disposals on public land. (4) All sites listed pursuant to Article 5 (commencing with Section 78760) of Chapter 4 of Part 2 of Division 45 of the Health and Safety Code.

 

On June 21, 2024, City staff reviewed the California Environmental Protection Agency Cortese List of Data Sources (https://calepa.ca.gov/sitecleanup/corteselist/) and confirmed that the project site is not on any of the following lists:

 

This exception does not apply.

 

Historical Resources. A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource.

 

Staff Response: On December 18, 2023, the Historic Resources Board reviewed a Phase 1 Intensive Report prepared by qualified professional Margaret “Meg” Clovis, along with five other professional opinions on the historic eligibility of the hotel (Attachments 11 and 12). The Board found that the Hofsas House Hotel does not meet the criteria for listing on the California Register or the Carmel Inventory of Historic Resources and issued a determination of ineligibility (Attachment 13). A 10-working day appeal period followed the Board’s decision during which time no appeals were filed. This Determination remains valid for five (5) years.

 

On December 18, 2023, the Historic Resources Board reviewed a Phase 1 Intensive Report prepared by qualified professional Margaret “Meg” Clovis on the historic eligibility of the single-family residence located on a portion of the hotel property fronting Dolores Street (Attachment 14). The Board found that the single-family residence, known as Donna Hofsas House, meets the criteria for listing on the Carmel Inventory of Historic Resources and added it to the historic inventory. A 10-working day appeal period followed the Board’s decision during which time no appeals were filed. The historic determination was filed with the Monterey County Clerk-Recorder on April 12, 2024.

 

No exterior modifications to the historic residence are proposed. Changes to the interior of the residence do not affect the significance of the historic resource. The residence will be preserved and protected during construction. The project will not cause a substantial adverse change in the significance of the historic Donna Hofsas House.  This exception does not apply.

 

Additional Appeal Contentions

 

A1: The plan views are incomplete and fail to accurately portray the building as proposed. In this regard the height limits needs to be accurately assessed on this sloping site.

 

Staff Response: On December 13, 2023, the Planning Commission held a public hearing to consider a conceptual design of the Carmel Legacy Hotel. At that meeting, the Commission was asked for direction on how to measure the building height on a site where previous excavation of the site had significantly altered the natural grade. The Carmel Municipal Code anticipates this condition and allows for an average grade to be determined and utilized for the measurement of building height. The maximum permitted building height is 24 feet on sites which “face, abut, or adjoin any property in the R-1 District.”

 

On sites disturbed from previous grading and excavation activities, an approximation of preexisting conditions may be used as a reference for determining average grade using grades on adjacent sites, retaining walls, and prior survey maps (refer to Sheet A-19 of the project plans). All such grade approximations shall require the concurrence of the Department and a determination that the resulting project complies with all requirements of the Zoning Ordinance, avoids large exposed cuts and unnatural topography and is consistent with R-1 design objectives. Average grade and associated building height measurements can be found on Sheets A-20 and A-21 of the project plans. 

 

As outlined in the April 10, 2024, Planning Commission staff report (Attachment7), the Department concurred with the grade approximations proposed by the applicant. Following a comprehensive zoning analysis the Planning Commission found that the project complies with all requirements of the Zoning Ordinance. The project utilizes past excavation of the site to provide a design that is more harmonious with the topography and surrounding structures by stepping down the height of the building from east to west. Last, the applicant provided a thorough analysis of how the project meets R-1 design objectives on Sheet A-19C of the project plans.

 

A2: The west side proposes an increase in glass compared to that existing with consequences for the neighbors from the increased reflective glare.

 

Staff Response: The project consists of multiple building forms that step down from east to west. Buildings 1-4 are proposed to be located on existing Lots 1 & 3, which total 8,000 square feet. Buildings 1 and 2, located adjacent to San Carlos Street and furthest from residences on Dolores Street, contain two hotel suites on each floor with west-facing sliding glass doors. The lower floor rooms are obscured by buildings 3 and 4, located west and downhill from buildings 1 and 2. The upper floor rooms are partially obscured by balcony railings.

 

Buildings 3 and 4, just to the west of Buildings 1 and 2 and adjacent to another hotel, the Carmel Country Inn, contain three hotel suites on the upper floor and six suites on the lower floor, each with west-facing sliding glass doors. The lower floor suites look at the roof of the Carmel Country Inn, while the upper floor suites are just above the Inn’s ridge. These sliding glass doors are also partially obscured by balcony railings. Additionally, the wall plane on the west elevation is articulated, creating approximately 5-foot offsets, which create breaks in the expanse of glass. Staff also notes that Buildings 3 and 4 are over 23 feet lower than the existing hotel building, and Buildings 1 and 2 are over 10 feet lower, making the project less visible from Dolores Street compared to existing conditions (refer to Sheet A-14 of the project plans). The City Council will have an opportunity to view the story poles from Dolores Street during the tour of inspection.

    

Building 5, on the south end of the site above the garage entrance on Dolores Street is the most visible west facing elevation. Articulation of the wall plane break up the massing of this portion of the building and balcony railings partially obscure the sliding glass doors. While the line of site is more visible, it is not unlike the west elevation of a typical single family home with west facing patio doors.

   

FISCAL IMPACT:
Staff time associated with processing this appeal is partially offset by fees collected from the appellant, with the remainder captured within the adopted FY 23-24 adopted budget for Community Planning and Building.
PRIOR CITY COUNCIL ACTION:
None
ATTACHMENTS:
ATTACHMENTS:
Description
Attachment 1) Resolution 2024-061
Attachment 2) PC Resolution 2024-026
Attachment 3) PC Resolution 2024-027
Attachment 4) Appeal (Redacted)
Attachment 5) EMC Planning Group Appeal Response
Attachment 6) Lombardo Letter dated 6-25-24
Attachment 7) April 10, 2024 PC Staff Report
Attachment 8) Hexagon Transportation Consultants
Attachment 9) MBARD Email
Attachment 10) BMP Plan Sheet
Attachment 11) Phase 1 Intensive Hotel Meg Clovis
Attachment 12) EMC Planning Group Professional Opinions
Attachment 13) Final Determination Hotel
Attachment 14) Resolution Donna Hofsas House