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Urbanite at Zanjero Conditional Use Permit Narrative for Continuing Care Retirement Community Application Number CUP20-09 Prepared for: Urbanite Capital SZ Real Co LLC 1 Sansome Street, Suite 3670 San Francisco, CA 94104 Prepared by: Earl and Curley 3101 N. Central Avenue, Suite 1000 Phoenix, Arizona 85012 Prepared: June 8, 2020 Conditional Use Permit 2 | P a g e Introduction Our office represents Urbanite Capital (“Urbanite”), which owns through SZ Real Co LLC the approximate +/- 7.5-acre property located at 7410 N. Zanjero Boulevard (APN 142-56-033). Urbanite seeks to bring development to a parcel and building that have remained vacant for over a decade. The proposal is for a luxury-level, senior wellness campus. Urbanite’s parcel was part of a larger overall 10.6-acre property originally developed as a single property in 2007-2008 as the Zanjero Falls Office Buildings. Due to the severe recession in 2008, the overall project was not completely finished, and no tenants ever occupied the rear building. In 2014, the property was split into a front parcel and a rear parcel. Currently, the front parcel is occupied by the Palo Verde Cancer Center and is not a part of this request. The subject property is located behind the Cancer Center parcel and contains a building that has sat vacant for many years. This proposal will not only bring a new high-end development to this underutilized site, but with its hospitality focus and extensive amenities, the proposal will also generate a substantial number of quality jobs for Glendale. The campus will be designed and developed as a unique and luxury-level senior wellness campus with housing, health services, and amenities at the top of the market in terms of quality. Our office previously obtained a conditional use permit for senior living on this site in 2015. The stipulations of that approval required general conformance to the narrative for that project. Urbanite seeks to develop a more robust senior wellness campus on the site that will also introduce luxury Independent Living units. Accordingly, a new CUP is needed. Characteristics of Use The proposed community will feature Assisted Living, Memory Care, and Independent Living all in one campus. The tremendous benefit of having all those uses in one campus will be discussed below. The existing three-story building will be renovated, will add a new kitchen on the southwest side, and will house the Assisted Living and Memory Care components. Just west of the existing building, a new six-story building will be constructed to house the Independent Living component. These structures will be the two major building sections of the campus. Conditional Use Permit 3 | P a g e Connecting the two building sections of the campus will be a new one-story common building containing reception area, garden, bar, café and dining establishments. In addition to the Assisted Living, Memory Care and Independent Living on-site, residents will be able to obtain additional home health services and hospice services within their dwelling unit if needed. As the attached floorplans show, the Assisted Living units will feature studio, 1-bedroom, and 2-bedroom options. The Independent Living units will include studio, 1-bedroom, 2-bedroom, and a penthouse 3-bedroom unit. Additionally, as part of our effort to seek innovation and deliver the next generation of senior care, the Independent Living area will also feature micro units and shared suites. The micro units are a studio-design unit similar to the type of micro units being proposed in urban multi-family projects. These units would contain about 354 square feet and would be expected for those residents who live alone and who simply desire/need less space. For example, some seniors may opt for smaller units because they spend most of their time out of their unit and in the common areas or in the broader Glendale community. The Shared Suite is an innovate concept that has been successful in Europe for over 25 years. The unit will feature five bedrooms and a shared living space, kitchen, and balcony. This could be considered the family model. One clear benefit of this model is the companionship it provides seniors as they gather together in their common living areas. What many seniors often long for most is companionship. Not all seniors coming to Independent Living do so as part of a couple, and this provides individual residents to the option of living with others, including friends and family. Conditional Use Permit 4 | P a g e At the time of submission of this project, we are planning to have a total of 254 Units (including Assisted Living and Independent Living) and to add to the site a 6-story Independent Living Building. We also need, however, to preserve flexibility into the project. As we go through the final engineering and get final numbers of cost of construction, we need to flexibility to make sure the project can continue to pencil. Accordingly, we are seeking flexibility to have a maximum of 300 units, which would likely require up to an additional two floors onto the new six-story building (for a total of eight floors)—of course being subject to the site’s FAR and height limits. As we understand it, Glendale is looking for and embracing more height and more density near Westgate, and so we hope this flexibility is acceptable to the City. Hospitality-Focused Wellness Community What we are proposing could be termed a hospitality-focused wellness community that offers a continuum of care. In 2019, the developer spent a week with Ritz Carlton hotels developing a model of healthcare delivery that focuses on wellness and the next era of healthcare delivery to the Baby Boomer population. With this focus on best practices within the hospitality industry, the proposed campus will feature amenities, building design, and site design commensurate with living in a resort. Conditional Use Permit 5 | P a g e As residents and guests arrive, they will first experience a resort-quality entry and welcome experience. This begins with the proposed driveway off of Zanjero Blvd., which is shown in the bottom right corner of the site plan below. This drive will be lined with lush landscaping and a center landscaped median. Attractive monument signage will be featured along this drive. Vehicles will drive around to the north side of the site (shown by the blue dashed line) and will pass by a beautiful reflecting pool and sculpture (indicated by the #2 below). On the north side of the site they will approach a new circular drive that wraps around a water feature and under a porte-cochère. From there residents and guests will enter into a welcome and reception area with upgraded interiors. This entry route will not only provide a superior experience for our resident and guests, but it will also direct traffic away from the adjacent cancer center and provide a more direct route for emergency vehicles. Conditional Use Permit 6 | P a g e The exterior amenities of the campus experience will also be commensurate with those of a resort. These will include the following: a desert garden, courtyards, dog run and pavilion, hydrotherapy pool, yoga lawn, wellness walking paths, and a therapuetic garden that will be exclusively used by our memory care residents. The Zanjero PAD requires 15% open space, but we are proposing 24%. Our design team has created a first-rate experience for our residents. The interior of the campus buildings will continue the focus on resort-quality hospitality. In addition to enhanced finishes, it will also feature the following upscale amenities: reception area lounge café bar theater game room classrooms wellness area salon massage aerobics business center fitness room clinic art room sky lounge on the 6th floor balconies for nearly all Independent Living units Residents will have access to concierge services and all-day dining with upscale dining options. Wellness coordinators will schedule and facilitate wellness programs that involve exercise, dietary counseling, and education. At this location, the developer is focused on bringing new-to-market concepts in senior living through the use of technology, artificial intelligence, and transportation mediums such as Uber and Lyft. The developer has recently built the same concept with a separate client in Omaha, Nebraska and St. George, Utah. The design was a hospitality-focused wellness community that offers a continuum of care with concierge services, upscale amenities and finishes, via a campus-style development. As would be true of this location and Westgate, these other developments are found within larger urban lifestyle centers to activate adjacent areas with a senior population. There is a large economic halo effect of adding these types of developments to urban lifestyle centers, as the services are utilized by a large number of residents, employees, and the families of residents. Conditional Use Permit 7 | P a g e Market research reveals Glendale has a shortage of luxury-level senior living options and yet there are significant income-qualified residents in the area. We are confident that based on our extensive demographic research for this area and the presence of Westgate, this campus will be very successful at this location. The Value of Assisted Living, Memory Care, and Independent Living in One Campus This development is targeting active seniors that desire to age in place by having Independent Living, Assisted Living and Memory Care together in one campus. For example, a senior may live in Independent Living for many years and may eventually need to transition to Assisted Living or Memory Care as they age. In our proposed campus, that transition would be simple and comfortable. Our model has been referred to as a micro-CCRC (or micro Continuing Care Retirement Community). Often in senior living without different levels of care in the same community, residents are forced to either separate from a spouse or move to another community when they need a higher level of care. This relocation forces them to make new friends and familiarize themselves with new caretakers and surroundings. Seniors do not want to, nor should they have to, relocate to a new community simply because they need a new level of care. They become accustomed to the community, its staff, its residents, and its amenities. Similarly, they become accustomed to their favorite nearby off-campus establishments for dining, entertainment, shopping, and beauty. Likewise, family members of seniors also become comfortable with a community and its quality of care for their loved one. They do not want to start over and find a new community because their loved one needs a different level of care later in life. All this explains one of the great benefits of our senior wellness campus having three different levels of care, as well as the possibility of receiving more home health services and hospice services within their dwelling unit if needed. Proposal Will Generate Substantial Employment for Glendale Consistent with the intent for this portion of the Zanjero PAD, the proposed campus will be a substantial employment generator for the City. Urbanite estimates that once this campus is operating at its full capacity, it will employ approximately 120-140 employees and spend approximately $4,000,000 in wages annually. Those jobs will include high-skill salaried positions as well as lower skill hourly positions. Positions will include the general manager, executive directors, nurses, caretakers, wellness staff, and others. Conditional Use Permit 8 | P a g e Below is a non-exhaustive sampling of the types of positions that are expected to be filled to serve this campus: General Manager over the entire campus Executive Directors Registered Nurse (RN) Licensed Practical Nurses (LPN)/Licensed Vocational Nurses (LVN) Caregivers/Alzheimer Caregivers Full-time Activities Supervisor Activities Staff Activity Bus Driver Med Aids Alzheimer Med Tech Plant Operations Supervisor Plant Operations Staff Environmental Services Supervisor Housekeeping Staff Laundry & Linen Staff Dietary Supervisor Dietary Staff Chefs Wait Staff Office Manager Marketing Staff It is fully expected that many individuals employed within the campus will want to move close to their work and become residents of the surrounding multi-family projects near Westgate and within Zanjero. Similarly, a natural consequent of bringing an employment use to this location is our employees will become shoppers, diners, and entertainment users at Westgate. This is squarely in line with the vision of the Zanjero PAD to create employment uses that support Westgate and Zanjero itself. Additionally, not only will this proposal generate employees to live, work, and play in the area, but the campus will also generate additional residential density. This density will acts as another support for Westgate and Zanjero. Indeed, following the model used by Urbanite’s developer in other cities (referenced previously), one of the main reasons Urbanite chose this site was because of its proximity to Westgate and its desire to draw upon those community amenities to elevate the campus experience for its residents. Campus residents at all levels of care are expected to frequent establishments within Westgate— some using their own vehicles or ride-share services (our IL residents), some during outings organized by the community and facilitated using campus transportation, and some with friends and family. Conditional Use Permit 9 | P a g e It is worth noting that one of the struggles Westgate has had is keeping the restaurants, shops, and other uses full during the daytime hours. At night, when Glendale residents are off work, those uses have greater patronage. Our proposal will generate workers who shop, dine and recreate before and after work and during their lunch break—which in a 24/7 place of employment like ours is spread throughout the day and night. We would also be bringing residents who do not have the same work obligations as other residents in the area and who would fill in those daytime hours. From a tax perspective, our proposal is another win for the City. Although Urbanite is still working on its proforma, it is estimating the campus will generate over $15,000,000 in revenue annually, which will have a derivate tax (and economic) benefit to the City. This is in addition to the significant property tax, impact fees, permit fees, construction tax, construction jobs, etc. New Driveway and Access Currently, the front parcel (Parcel 3B) is occupied by the Palo Verde Cancer Center. Our client’s Subject Parcel (Parcel 3A) is located behind the Cancer Center parcel. The third parcel (Parcel 3C) is currently vacant but has been recently rezoned for an active adult multi-family development as well as future development on the west side that has not yet been determined. As part of this future development on the west side of Parcel 3C, the Subject Parcel’s access to the portion of the driveway crossed out in orange is being eliminated to create the opportunity for a contiguous parcel that is not interrupted by an east/west driveway. Accordingly, that will leave the Subject Parcel with the main entrance to the Cancer Center serving as its only point of access. We are in the process of securing a new easement over Parcel 3C for a new driveway off of Zanjero Boulevard that will act as our primary driveway. This new driveway would serve as our grand, landscaped entrance (site plan in the discussion below). Our intent would then be for the Cancer Center driveway to serve as our second point of access. Conditional Use Permit 10 | P a g e Conceptual representation of new proposed driveway Conditional Use Permit 11 | P a g e Planning Commission Conditional Use Permit Findings The City’s Zoning Ordinance states that the Planning Commission shall make the below findings before granting a conditional use permit (see Section 3.904). The applicant’s Conditional Use Permit request meets all the findings for granting approval. Below is our analysis of each. A. General Findings 1. That the proposed use is consistent with the policies, objectives, and land use map of the Glendale General Plan and the purpose of the zone district in which the site is located; This proposal does not seek to modify the existing General Plan designation, nor does it seek to modify the property’s existing Zanjero PAD zoning. The City’s General Plan land use map identifies this site as “CCC” (Corporate Commerce Center), which encourages mixed use employment centers with a complimentary community and specialty in retail, hotels, major medical facilities and entertainment and destination uses serving the region. This CCC designation must be considered holistically within the Zanjero PAD and Westgate. Of course no single project can realistically be all of these different uses. But as part of the 160-acre Zanjero PAD and Westgate area, this project fits well within a fabric of retail, hospitality, employment, mixed use, and entertainment uses. As an independent part of the greater whole, the proposed request meets the designation of employment that was placed on this parcel as part of the Zanjero PAD. City Staff has reviewed the Applicant’s proposal and supporting documents that describe the proposed use and characteristics of the use and has determined this proposed use meets the employment land use designation of the Zanjero PAD, subject to securing the necessary Conditional Use Permit from the Planning Commission. 2. That the proposed use will not be materially detrimental to the health, safety or general welfare of persons residing or working within the neighborhood of the proposed use, or have an adverse effect on the property, adjacent properties, the surrounding neighborhood or the city when consideration is given to the character and size of the use and hours of operation; For reasons stated within this justification narrative, the proposed use will provide a boost to the livability and character of this area. We see no possible negative impact on adjacent properties. The proposed character and use is consistent with both the existing multi-family to the west, the hotels to the south and the other existing mixed of uses in the area. Our market research reveals Glendale has a shortage of luxury-level senior living options and yet there are significant income-qualified residents in the area. Thus, we are providing a housing option for seniors that is underrepresented based on the current demographics. Conditional Use Permit 12 | P a g e As analyzed in more detail previously, we expect this use to generate a substantial economic benefit to the surrounding area, including Westgate. The proposal will bring residents with disposable income and available time for shopping, eating, and recreating—both with and without visiting family members. It will also bring a large number of employees who will use these commercial establishments before and after work and during meal breaks that will be spread through the day and night. Urbanite is proposing to activate a building that was developed as an office building and which remained vacant since 2008. Urbanite seeks to invest millions of dollars to redevelop the existing building and to create additional housing for seniors. The proposed use produces less traffic than what would normally occur if this site were developed as an office development. In addition, there will be less impact on the adjoining streets. We believe the new proposal by Urbanite is something that is needed in this area and will benefit the surrounding community. Activating a property so close to Westgate that has been vacant since 2008 will be a large benefit to Glendale. We see no manner in which this proposal could be a detriment to the health, safety or general welfare of any person in the area or have an adverse impact on adjacent properties. In fact, we believe it helps the surrounding area and surrounding business community. 3. That the proposed site is adequate in size and shape to accommodate the intended use and that all requirements for the zone district, including but not limited to: setbacks, walls, landscaping and buffer yards are met; Again, the proposed site is 7.5 acres. The existing building will be reused for a part of this continuum of care community. The new 6-story independent living building will work in tandem with the existing building to operate as a single campus. The size of the existing site is adequate for the new and existing proposal and has sufficient access to provide to Zanjero. All the setbacks, walls, landscaping and buffers are being met. 4. That the proposed site has adequate access to public streets and highways to carry the type and quantity of traffic which may be generated by the subject use, and that on-site circulation is adequate to permit driveways, parking, and loading requirements in a manner which is safe and efficient; As previously described in driveway and access section of this narrative, the site currently has adequate access from Zanjero Boulevard to both the Cancer Center property and Urbanite’s property and will always continue to have adequate access. Part of this proposal is to provide a new driveway to provide a direct access to Urbanite’s parcel which is tucked behind the Cancer Center parcel. Part of this reason this project has remained vacant is because it has poor visibility from the street. Providing a new, direct driveway will help provide a sense of arrival to this parcel. The new driveway, existing driveways and overall site circulation are adequate for the existing and proposed projects. The Traffic Department has reviewed and approved the new proposed driveway onto Zanjero Boulevard. Conditional Use Permit 13 | P a g e Furthermore, these types of uses produce a fraction of the vehicular trips that an office use would. That is largely because, on average, many of the residents do not own a vehicle, do not drive, and therefore do not contribute to parking demand which typically reduce traffic and parking demands. 5. That adequate conditions or stipulations have been incorporated into the approval of the conditional use permit to insure that any anticipated detrimental effects can be mitigated. We are submitting this narrative at the time of application and thus do not have a set of stipulations to review and comment on. That being said, because of the compatibility and benefit of the proposal for this area, we would not anticipate a long list of stipulations being necessary. Conclusion In our opinion, this luxury senior wellness campus is a win for Glendale and meets the vision for Zanjero. The campus will transform an underutilized parcel into something special. The campus has been designed with an enhanced entry experience complete with lush landscaping, reflecting pool, sculpture, water feature and hotel-style porte-cochère. The exterior campus amenities will include a pool, yoga lawn, and gardens, among others. The interior features will include restaurants, bar, theater, salon, and more. The experience for residents will compare to the experience of staying at a high-end resort. As a “micro-CCRC,” the campus will bring together Independent Living, Assisted Living, and Memory Care into one campus, which allows seniors to age in place. The proposed senior wellness campus is expected to generate 120-140 jobs, including high-skill salaried positions and lower skill hourly positions, with an annual payroll of $4 Million. The proposed campus will generate an increase of workers and residents for this area who will frequent and support Westgate, including during slower times of the week. Not only is the proposed CUP in line with the Zanjero PAD, but it is also in line with the City’s vision for Zanjero generally. We look forward to discussion this proposal with staff and receiving the feedback of the various disciplines. O:\INDEX\Urbanite\Zanjero - Continuum of Care\Docs\FINAL - City of Glendale CUP Justification Narrative (PC Hearing Submittal)- 8.31.2020.docx