BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 710
                                                                  Page  1

          Date of Hearing:  May 4, 2011

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                    AB 710 (Skinner) - As Amended:  April 25, 2011
           
          SUBJECT  :  Local planning: infill and transit-oriented 
          development. 

           SUMMARY  :  Establishes minimum parking standards for new 
          transit-oriented development.  Specifically,  this bill  :  

          1)Prohibits a city, county, or city and county, including a 
            charter city, from requiring a minimum parking standard 
            greater than one parking space per thousand square feet of 
            nonresidential improvements and one parking space per unit of 
            residential improvements for any new development project, 
            including changes of use that incorporate existing building 
            improvements, in transit intensive areas.

          2)Specifies that the minimum parking standards only apply if the 
            proposed project and immediately adjoining properties are not 
            designated for development or redevelopment at a floor area 
            ratio below 0.75.

          3)Allows jurisdictions to require higher minimum standards for 
            new development if it makes written findings based upon 
            substantial evidence in the record, including a parking 
            utilization study completed within the last 24 months, that 
            shows existing publicly available parking that includes all 
            publicly owned on-street and off-street spaces and privately 
            owned off-street spaces accessible to the general public, 
            within  -mile of the project site, but excluding any spaces 
            on exclusively residential streets, have a peak occupancy that 
            exceeds 85% at any point during the study period.

          4)Defines "transit intensive area" as an area that is within 
            one-half mile of a major transit stop or high-quality transit 
            corridor included in a regional transportation plan. 

          5)Defines "major transit stop" as a site containing an existing 
            rail transit station, a ferry terminal served by either a bus 
            or rail transit service, or the intersection of two or more 
            major bus routes with a frequency of service interval of 15 
            minutes or less during the morning and afternoon peak commute 








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            periods - a term defined in existing law, but specifies that 
            it also includes major transit stops that are included in the 
            applicable regional transportation plan. 

          6)Defines a high-quality transit corridor as a corridor with 
            fixed route bus service with service intervals no longer than 
            15 minutes during peak commute hours. 

          7)Specifies that a project is considered to be within  -mile of 
            a major transit stop or high-quality transit corridor if all 
            parcels within the project have no more than 25% of their area 
            farther than one-half mile from the stop or corridor and if 
            not more than 10% of the residential units or 100 units, 
            whichever is less, in the project are farther than - mile 
            from the stop or corridor.


          8)Includes findings related to the need to reduce excessive 
            minimum parking standards to support infill and 
            transit-oriented development.

          9)Includes within the definition of "sustainable communities" 
            for purposes of the Strategic Growth Council (SGC)  those 
            communities that incentivize infill development.
           

           EXISTING LAW  :


          1)Authorizes a city or county to grant a variance from the 
            parking requirements of a zoning ordinance in order that some 
            or all of the required parking spaces be located offsite, 
            including locations in other local jurisdictions, or that 
            in-lieu fees or facilities be provided instead of the required 
            parking spaces, if both the following conditions are met:


             a)   The variance will be an incentive to, and a benefit for, 
               the nonresidential development; and,

             b)   The variance will facilitate access to the 
               nonresidential development by patrons of public transit 
               facilities, particularly guideway facilities." 










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          2)Defines "major transit stop" as a site containing an existing 
            rail transit station, a ferry terminal served by either a bus 
            or rail transit service, or the intersection of two or more 
            major bus routes with a frequency of service interval of 15 
            minutes or less during the morning and afternoon peak commute 
            periods.  

           3)Establishes the SGC, consisting of the Director of State 
            Planning and Research, the Secretary of the Resources Agency, 
            the Secretary for Environmental Protection, the Secretary of 
            Business, Transportation and Housing, the Secretary of 
            California Health and Human Services, and one member of the 
            public to be appointed by the Governor.

          4)Requires the SGC, among other things, to recommend policies 
            and investment strategies and priorities to the Governor, the 
            Legislature, and to appropriate state agencies to encourage 
            the development of sustainable communities, such as those 
            communities that promote equity, strengthen the economy, 
            protect the environment, and promote public health and safety.

           FISCAL EFFECT  :   Unknown 

           COMMENTS  :   

          1)According to the Urban Land Institute's  Transportation for a 
            New Era: Growing more Sustainable Communities (2009) study 
            "the more that housing, jobs, and services spread out, the 
            harder it becomes to access them without an automobile.  Only 
            with more compact development and more transportation options 
            - rapid transit and walkable designs - is it feasible to 
            achieve national goals for economic productivity and 
            environmental sustainability.  What's more, Americans 
            increasingly demand more compact product types.  Consumer 
            preference surveys and studies of housing values show that 
            there is an unmet demand for walkable neighborhoods.  Transit 
            use is up and voters have repeatedly approved referendums 
            raising taxes or approving bond issues for expanded rapid 
            transit service.  But 


          the supply of affordable compact, mixed-use, transit-oriented 
            development products has not kept pace.  Studies show that 
            compact development results in fewer miles traveled, reducing 
            fuel consumption and emissions. In areas where housing, 








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            employment, shopping, or services are close by - even in 
            low-density places without high-quality transit service - 
            people walk more.  Compact development can reduce the cost of 
            public infrastructure and encourage healthy habits such as 
            incorporating walking and biking into daily routines.  With 
            transportation options, families save.  Each automobile a 
            household maintains costs it, annually, between $5,500 for a 
            small sedan driven 10,000 miles a year to nearly $12,000 for 
            an SUV driven 20,000 miles a year.  The compact development 
            model can be adapted to urban, suburban, and rural contexts.  
            New communities can develop in more compact ways, and many 
            existing suburban areas are ready to be revamped into a more 
            concentrated, walkable, and mixed-use "village" form.  
            However, in many communities, development around transit and 
            other likely locations is stymied by zoning restrictions and 
            parking requirements."

          2)When cities build transit-oriented development (TOD), a major 
            goal is to make it easier for people to walk or bicycle in the 
            district, while still accommodating drivers who visit, work, 
            or live in the area.  Well-placed and appropriate quantities 
            of parking are vital.  On-street parking is critical for 
            retail in a TOD to provide convenient, short-term parking for 
            customers, protect pedestrians from traffic, and reduce 
            parking spaces needed in garages or lots.  Putting parking 
            lots or garages behind buildings or in the center of the block 
            makes the streetscape more attractive and is safer for 
            pedestrians.  Ground-floor retail or residential entrances, 
            instead of parking lots or garages, should line the street.  
            Some cities will waive parking requirements with in-lieu fees 
            that the city uses to construct shared parking in appropriate 
            locations through a parking district or Business Improvement 
            District.

            Urban planners typically set the minimum parking requirements 
            for every land use to satisfy the peak demand for free 
            parking.  As a result, parking is free for 99% of automobile 
            trips in the United States.  Minimum parking requirements 
            increase the supply and reduce the price- but not the cost - 
            of parking.  They bundle the cost of parking spaces into the 
            cost of development, and thereby increase the prices of all 
            the goods and services sold at the sites that offer free 
            parking.  Cars have many external costs, but the external cost 
            of parking in cities may be greater than all the other 
            external costs combined.  Some off street parking requirements 








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            are done by number of units some are done by number of 
            bedrooms.  Some cities and counties even require certain 
            number of spaces for visitors.  

            High parking requirements encourage one mode of transportation 
            over others while restricting developers' profits and 
            neglecting the market for housing units without parking.  
            Buyers and renters pay a price for parking, whether they see 
            it or not.  The amount of new housing that can be built is 
            sometimes restricted by the requirement of space for parking.  

            A number of stakeholders play a role in the development 
            process, including developers, lenders, the city, neighborhood 
            groups, housing activists, and buyers and renters.  Their 
            respective motivations influence the process, driving toward 
            an outcome that finds the least resistance from the total set 
            of all interested parties.


            Most of the parking standards that are used in urban areas and 
            even in fairly dense small towns were developed for outlying 
            areas where there's no use nearby where parking could be 
            shared.  So a lot of the parking standards are much higher 
            than they need to be, and that drives the cost of housing up.  
            TOD supporters argue we need parking regulations that 
            acknowledge the possibility of using transit and shared 
            parking.


          3)California has taken steps over the last several years to 
            establish programs and policies to help incentivize regional 
            and local planning efforts.  One of the most notable is 
            requiring a reduction in vehicle miles traveled and greenhouse 
            gas emissions through coordinating regional transportation and 
            land use plans �SB 375 (Steinberg), Chapter 728, Statutes of 
            2008].  In response to these policies communities throughout 
            California have designed plans to: encourage denser, mixed-use 
            development in order to create more walkable, transit friendly 
            places.  However, there is still much that can be done to 
            remove barriers and incentivize new development in these 
            special planning areas.

          AB 710 seeks to address one barrier, highlighted by multiple 
            studies, which is the standard requirement for parking units 
            that is applied across the board.  AB 710 attempts to remove 








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            this barrier by promoting a policy that reduces the minimum 
            amount of parking a local jurisdiction may require for 
            projects within this very narrow set of planning areas, 
            thereby allowing market conditions to dictate the parking 
            needs associated with development in these areas. 

          4)Western Center on Law & Poverty and the California Rural Legal 
            Assistance Foundation have expressed concern that AB 710 may 
            have serious unintended consequences for affordable housing, 
            but have not taken a position on the bill and are working with 
            the author to address their concerns. They point out that the 
            bill may undercut provisions of the state's density bonus law, 
            which provides incentives to developers of market-rate housing 
            to include affordable units in their projects.  The two 
            organizations note that they have long been proponents of 
            smart growth and improved access to public transit for their 
            low-income clients, but believe that AB 710 addresses one part 
            of the problem out of context with a whole host of other 
            concerns, including environmental justice issues.


          5)Support arguments:  Supporters argue that AB 710 provides a 
            significant incentive to housing and commercial developers to 
            pursue needed infill and TOD projects.  According to the 
            supporters, increases in public transportation options and the 
            development of more walkable and bikeable neighborhoods reduce 
            the demand for parking.  Relaxing minimum parking requirements 
            allows developers to be more creative and efficient in 
            supplying housing, especially in inner city areas.


          Opposition arguments: Opponents argue that AB 710's 
            one-size-fits-all approach impedes local discretion in land 
            use decision-making and ignores the fact that every community 
            is different and has different needs. Opponents feel that 
            decisions about parking are best left to the discretion of 
            local governments, who are in a much better position to 
            determine how much parking their community requires. 

          6)This bill was heard in the Housing and Community Development 
            Committee on 
          April 27, 2011, and passed with a 7-0 vote.











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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          CA Infill Builders Association �SPONSOR]
          A.G. Spanos Companies
          City of San Bernardino
          Civic Enterprise Development LLC
          Codding Enterprises
          Creative Housing Associates 
          Domus Development
          JMA Ventures, LLC
          Natural Resources Defense Council
          Non-Profit Housing Association of Northern CA
          Policy in Motion 
          San Francisco Planning and Urban Research Association
          TMG Partners
          Township Nine at the River District
          Transform 

           Concerns

           CA Rural Legal Assistance Foundation
          Western Center on Law & Poverty
           
          Opposition 
           
          Cities of Concord and Lakewood

           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916) 
          319-3958