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HomeMy WebLinkAboutT-5342 - Report - 3/17/2005 c'"Of ��� REPORT TO THE CITY COUNCIL �- , FREM0 AGENDA ITEM NO. ;: (,� �. COUNCIL MEETING 1- 11-01-, January 11, 2005 APPROVED BY FROM: NICK P. YOVINO, Director DEPARTMENT DIRECT R` Planning and Development Department BY: GILBERT J. HARD, Planning an er CITY MANAGER Planning Division SUBJECT: VESTING TENTATIVE TRACT MAP NO. 5342 AND RELATED CONDOMINIUM CONVERSION APPLICATION AND ENVIRONMENTAL FINDING FOR ENVIRONMENTAL ASSESSMENT NO.T-5342 FOR THE "EMERALD ESTATES"APARTMENTS RECOMMENDATION Staff recommends,the City Council to take the following action: 1. APPROVE the environmental finding of a Categorical Exemption for Environmental Assessment No. T-5342 issued December 9, 2004. 2. APPROVE the Condominium Conversion Application for the"Emerald Estates" Apartments. 3. APPROVE Vesting Tentative Tract Map No. 5342 subject to compliance with the Conditions of Approval dated December 15, 2004. EXECUTIVE SUMMARY The applicant, United Development Group, Inc., has filed Vesting Tentative Tract Map No. 5342 proposing to subdivide the 118-unit "Emerald Estates" apartment complex into a one common lot condominium subdivision. The one common lot subdivision would allow for the sale of the individual airspace to individual buyers and would require that all buyers of residential airspace share in common ownership of all buildings, streets, open space, walls, etc., on the entire site. The "Emerald Estates" apartment complex is located on the west side of South First Street between East Platt Avenue and East Tulare Street. The site contains 4.54 acres of land and is zoned R-3 (Medium Density Multiple Family Residential) and is developed at a density of 25.9 units to the acre. The proposed project and zoning are consistent with the medium-high density residential land use designation of the Roosevelt Community Plan and the 2025 Fresno General Plan pursuant to Government Code Section 66427.2 (Subdivision Map Act) of the State of California. On December 15, 2004, the Fresno City Planning Commission recommended approval of the Condominium Conversion Application and Vesting Tentative Tract Map No. 5342 to the City Council. PROJECT INFORMATION PROJECT Conversion of an existing 118-unit apartment project to an 118-unit condominium airspace subdivision on one common lot APPLICANT United Development Group, Inc. LOCATION West side of South First Street between East Platt Avenue and East Tulare Street (Council District 3, Councilmember Sterling) SITE SIZE 4.54 Acres (25.9 units to the acre) REPORT TO THE CITY COUNCIL "Emerald Estates"Condominium Conversion Application Vesting Tentative Tract Map No. 5342 January 11, 2005 Page 2 LAND USE Existing - Emerald Estates Apartment Complex Proposed - Condominium Airspace Subdivision ZONING Existing - R-3 (High Density Multiple Family District) Proposed - R-3 (High Density Multiple Family District) PLAN DESIGNATION The Roosevelt Community Plan and the 2025 Fresno General Plan AND CONSISTENCY designate the subject site for development with the medium-high density residential land use designation which is consistent with the existing R-3 zoning pursuant to Government Code Section 66427.2 (Subdivision Map Act) of the State of California UNIT INFORMATION Floor Plan Number Square Footage Unit "A" 86 800 1 Bedroom, 1 Bathroom Floor Plan Number Square Footage Unit"B" 2 Bedroom, 1 Bathroom 32 1,000 YEAR APARTMENT Completed February 8, 1965 COMPLEX CONSTRUCTED PRESENT MONTHLY $480 - $640 RENTAL RATE ESTIMATED SALES PRICE $95,000—$115,000 OF CONDOMINIUM UNITS ESTIMATED MONTHLY $150.00 OWNERS'S ASSOCIATION FEES ENVIRONMENTAL FINDING Finding of Categorical Exemption pursuant to Section 15301(k)/ Class 1 of CEQA filed on December 9, 2004 PLAN COMMITTEE The Roosevelt Community Plan Advisory Committee RECOMMENDATION recommended approval of this project on August 9, 2004 STAFF RECOMMENDATION Recommend approval of condominium conversion application and approve vesting tentative tract map subject to compliance with Conditions of Approval for T-5342 dated December 15, 2004 PLANNING COMMISSION On December 15, 2004, the Planning Commission voted to RECOMMENDATION recommend approval of the Vesting Tentative Tract Map No. 5342 and the Condominium Conversion Application by a vote of 4 to 0 with one commissioner recused. REPORT TO THE CITY COUNCIL "Emerald Estates"Condominium Conversion Application Vesting Tentative Tract Map No. 5342 January 11,2005 Page 3 BORDERING PROPERTY INFORMATION Planned Land Use Existing Zoning Existing Land Use C-6 &C-M AM/PM Gas North General Heavy Commercial Heavy Commercial and Commercial and Station/Vacant Light Manufacturing South Open Space/Neighborhood Park 0 Park Open Space East Neighborhood Commercial C-2 Shopping Center Community Shopping Center District West Medium High Density Residential High Density Multiple Family Residential Apartments ENVIRONMENTAL FINDING Pursuant to the Public Resources Code (California Environmental Quality Act (CEQA) — Section 21084) and the CEQA Guidelines (Section 15301(k)), the division of existing multiple family rental units into condominiums is categorically exempt from the requirement for the preparation of environmental documents. A finding of a Categorical Exemption was filed with the City Clerk on December 9, 2004. BACKGROUND/ANALYSIS The applicant, United Development Group, Inc., has filed Vesting Tentative Tract Map No. 5342 and a Condominium Conversion Application for the Emerald Estates apartment complex on 4.54 acres of property located on the west side of South First Street between East Platt Avenue and East Tulare Street. Vesting Tentative Tract Map No. 5342 would subdivide the Emerald Estates apartment complex into a one common lot subdivision. The one common lot subdivision would allow for the sale of the individual airspace to buyers and would require that all buyers of residential airspace share in common ownership of all buildings, streets, open space, walls, etc.,for the 4.54 acre site. The City's Condominium Conversion Ordinance (Article 9, Chapter 12, Fresno Municipal Code),adopted on June 3, 1980, and substantially amended November 17, 1981, establishes regulations for the conversion of existing multiple family rental dwelling units to condominiums. The ordinance provides for twice yearly review of applications by the Planning Commission with final action by the City Council. This condominium conversion application is being considered during the review period, which began June 1, 2004. The ordinance contains provisions that allow prospective buyers of converted units to be able to make informed decisions with regard to purchase, and to be assured that the converted units meet the basic standards of safety, comfort and utility, and that tenants of iihe proposed conversion be protected from any impacts associated with the condominium conversion process. Important provisions of the. Condominium Conversion Ordinance include: • Provisions to protect rental housing adjacent to institutions where it is desirable to maintain the supply of rental housing. • Storage space requirement of 60 cubic feet per unit. • Providing one washer/dryer for every five units • Tenant relocation plans must be responsive to tenant makeup of the project. REPORT TO THE CITY COUNCIL "Emerald Estates"Condominium Conversion Application Vesting Tentative Tract Map No. 5342 January 11, 2005 Page 4 Tenant noticing and other tenant's rights provisions to conform to State law. Semi-annual application filing deadlines of June 1 and December 1 of each year. • Provision prohibiting approval of projects where discriminatory rental practices have occurred. Pursuant to the State Subdivision Map Act (SMA) and the Condominium Conversion Ordinance, Section 12-905(c), the Planning Commission shall hear testimony on the proposed conversion and make a recommendation to the City Council. The City Council, following the decision by the Planning Commission, shall not approve the final map for a subdivision to be created from the conversion of residential real property into a condominium project unless it finds, pursuant to Section 66427.1 of the SMA that the "requirements for notice of tenants and right of tenants to exclusive contract for purchase in condominium projects"have been complied with and that all required findings (a through e) of this section have been met. Also, the City Council must find that all requirements of Section 66452.8 and Section 66452.9 of the SMA have been complied with, and Section 12-909-a and b of the Condominium Conversion Ordinance of the FMC. Roosevelt Community Plan Advisory Committee The Roosevelt Community Plan Advisory Committee reviewed the Emerald Estates condominium conversion application and recommended approval of the vesting tentative tract map and condominium conversion application at its meeting on August 9, 2004. Fresno City Planning Commission On December 15, 2004, the Fresno City Planning Commission considered the tract map and condominium conversion application. The applicant indicated that tenants who were living at the Emerald Estates and received the Notice of Intent to Convert the apartments into condominiums are entitled to the benefits of the Tenant Relocation and Assistance Plan (TRAP). The Plan provides monetary assistance, lifetime leases for elderly and handicapped, and extended leases for students who are currently enrolled in 12 units or more seeking a degree at a post-secondary educational institution or vocational training program. The monetary assistance and/or extended leases are required to be offered to each tenant when the tenant receives their 180 Day Notice to Vacate. The applicant further acknowledged that any new tenant that moved into the Emerald Estates apartment complex that signed a six month rental lease or a year long rental lease after the Notice of Intent to Convert was delivered, would not be forced to vacate their unit until such time that their lease expires. The applicant further acknowledged that any tenant that moved into the Emerald Estates after the initial Notice of Intent to Convert is not eligible for benefits of the TRAP. The applicant also raised two issues of concern with regards to the conditions of approval for the vesting tentative tract map and condominium conversion application. The applicant requested that condition Number 9 of the Conditions of Approval dated December 15, 2004, allow the Planning and Development Department Director to have discretion on reducing the number of on-site trees from 295 medium size trees to a number more appropriate for the site. Staff informed the applicant that the tree requirement is a discretionary condition and that the Planning and Development Department Director has the authority to reduce the number of trees, however, the applicant would still be required to maintain the 50% parking lot shading standard. The applicant also indicated that Condition Number 45 of the Conditions of Approval dated December 15, 2004, which requires the undergrounding of overhead utilities be deferred until such a time that a city-funded project is implemented for the neighborhood. REPORT TO THE CITY COUNCIL "Emerald Estates"Condominium Conversion Application Vesting Tentative Tract Map No. 5342 January 11, 2005 Page 5 Public Works Department staff indicated that the applicant should pursue the deferral by writing to or meeting with the Public Works Department Director requesting the deferral agreement. Several tenants of the Emerald Estates apartment complex also addressed the Planning Commission. Their primary concerns were in regards to how the assistance would be provided once they are forced to vacate the property; how lifetime leases would be implemented and at what time would the lease be offered by the applicant to the tenants; will six month rental leases and one year rental leases be honored for tenants that signed leases after the Notice of Intent to Convert was initially issued; and how are low income families being accommodated if they can not find comparable housing. Their issues were discussed at length and answered by the Planning Commission, staff and the applicant. After a full hearing, the Planning Commission, by a vote of 4-0 with one commissioner recused, recommended approval to the City Council of Vesting Tentative Tract Map No. 5342 and the related Condominium Conversion of the"Emerald Estates" apartments. Building and Site Requirements The Condominium Conversion Ordinance provides that all units proposed for conversion meet minimum housing and building standards, Zoning Ordinance standards primarily relating to parking, access, walls, and public improvement standards. Staff recommended conditions of approval relating to the buildings and site requirements which are contained in the Change of Use/Occupancy Investigation Report dated July 1, 2004, and in the conditions of approval for the tract map dated December 15, 2004. These requirements include providing additional washers and dryers at an equation of one washer and dryer for every five units or a fraction thereof, additional covered and uncovered parking spaces, maintaining existing trees on site, requiring that the tree requirement of one tree for every unit and one tree for every required parking space be maintained, and providing 60 cubic feet of lockable storage area for each of the 118 units. Tenant Provisions Section 66451.3 of the SMA and the Condominium Conversion Ordinance (Section 12-909-a and b of the FMC) require that if the proposed subdivision is a conversion of residential real property, a notice of public hearing shall be given by the city to each tenant of the subject property, and shall include notification of the tenants' right to appear and be heard. Furthermore, Section 12-904(f) of the Condominium Conversion Ordinance requires that the applicanVowner provide a Tenant Relocation and Assistance Plan (TRAP) to any tenants that might be displaced by the sale of the unit in which they reside. Based upon a review and analysis of the applicant's proposed TRAP, staff concludes that the proposed plan for the Emerald Estates project appears to meet the minimum requirements of the Condominium Conversion Ordinance. The information provided to existing and prospective tenants includes provisions to aid special classes of tenants. These include, lifetime leases for elderly and handicapped tenants and extended.leases for full time students and these provisions are contained in the submitted TRAP. Staff has determined that the applicant's proposed TRAP meets the minimum requirements of Section 12- 904(f) of the Condominium Conversion Ordinance. The plan contains provisions, which will help to alleviate any impact upon tenants, which may be caused by tenancy termination as a result of the conversion. In addition, the TRAP states that a full refund of the security deposit will be given to tenants forced to vacate units which is in addition to the required two-month rent equivalent relocation fee. REPORT TO THE CITY COUNCIL "Emerald Estates"Condominium Conversion Application Vesting Tentative Tract Map No. 5342 January 11, 2005 Page 6 It is worth noting that the project rent roll dated November 10, 2004, has indicated that there are 55 units within Emerald Estates which have tenants who receive Housing Choice Vouchers (Section 8), which is administered by the Housing Authorities of the City and County of Fresno. According to the TRAP submitted by the applicant, the tenants of these 55 units will not receive any special assistance above and beyond what will be offered to the other tenants. However, the applicant has indicated that tenants receiving the Housing Choice Vouchers will be given their full first and last months rent as a rental relocation allocation rather than only receiving the portion of the rent that they would normally pay as a rental relocation benefit. The applicant has indicated that Emerald Estates tenants are on month-to-month, six month, and one year rental leases. Any new tenant that has moved into the apartment complex after the filing of the condominium conversion application have signed, of their own accord, a Notice of Intent to Convert which notifies the prospective tenant that the apartment complex is in the process of being converted to condominiums and may be sold. The applicant has-acknowledge that any new tenant moving in after the submittal of the condominium conversion application is not entitled to any assistance as detailed in the Tenant Relocation and Assistance Plan. The applicant has also provided the city a Comparable Housing Availability Report, which is available to all tenants who may choose to leave the Emerald Estates voluntarily or who are forced to relocate due to the conversion process. This report, which is on file with the Planning and Development Department, provides comparable rental housing availability within a reasonable mile proximity to the proposed condominium conversion project. The applicant has also indicated in the TRAP that there will be a tenant relations representative to assist each tenant in the relocation process. Consistency with Adopted Plans and Local Ordinances The Roosevelt Community Plan and 2025 Fresno General Plan designate the site for medium-high density planned land use and is zoned R-3 (Medium Density Multiple Family Residential District). Pursuant to Table 2 (Planned Land Use and Zone District Consistency Matrix) of the 2025 Fresno General Plan, the R-3 zone district does not conform to the medium-high density residential planned land use designation. However, Government Code Section 66427.2 (Subdivision Map Act) of the State of California does not mandate planned land use consistency findings for condominium projects which consist of the subdivision of airspace in an existing structure unless new .units are to be constructed or added. The project, as proposed, consists of existing structures with no habitable additions. As documented in the 2025 Fresno General Plan and the Fresno City Housing Element adopted on June 18, 2002, housing affordability in the city is declining. Although the city has recently experienced a greater than predicted increase in the number of new homes, increases in costs have made it prohibitive for various individuals and families to purchase them. As a result, many families that cannot purchase homes are forced to pay rent on a month-to-month basis. According to the 2025 Fresno General Plan and the Fresno City Housing Element, condominiums provide for an "affordable" housing alternative to individuals that may prefer the benefits associated with condominium home ownership. Although conversions of multiple family apartment complexes into condominiums provides an alternative to conventional single family home ownership, it diminishes the number of apartment units available within the surrounding area that often provide housing options to a segment of the community which are often disadvantaged individuals that are unable to purchase homes. With the recent conversion of a 220 unit apartment complex ("Villa Santa Fe") to condominiums located approximately half a mile from the subject site, the proposed conversion would reduce the number of rentals in the immediate vicinity thereby decreasing the number of available rental units within the downtown area. REPORT TO THE CITY COUNCIL "Emerald Estates"Condominium Conversion Application Vesting Tentative Tract Map No. 5342 January 11, 2005 Page 7 However, it should be stated that although the conversion of apartments decreases the number of rentals within the city it does provide individuals with a wider-range of opportunity for homeownership. In addition, the Comparable Housing Availability Report provides a list of apartment complexes that have comparable amenities to the Emerald Estates, a copy of which is provided to each tenant opting to vacate and request assistance for replacement housing. The proposed conversion is considered to be consistent with the adopted policies of the 2025 Fresno General Plan and Fresno City Housing Element relating to condominium conversions and to be in conformance with the purposes of the city's Condominium Conversion Ordinance. Based upon the above analysis and subject to compliance with the conditions of project approval dated December 15, 2004, the building standards and the proposed Emerald Estates Tenant Relocation and Assistance Plan provisions, the condominium conversion project meets the criteria established by Article 9, Chapter 12 of the FMC. Major Street Improvement The site is accessed off of South First Street and East Platt Avenue. The 2025 Fresno General Plan designates South First Street as an arterial and East Platt Avenue as a local residential street. The applicant will be required to dedicate and install a wheelchair ramp at the corner of the North First Street and East Platt Avenue. Other requirements include relinquishing vehicular access rights to North First Street from within the proposed subdivision, under-grounding the existing street lighting system within the limits of the tract, and the repair or replacement of all damaged off-grade concrete street improvements as appropriate. These street improvements are outlined in more detail in the Conditions of Approval dated December 15, 2004. Condominium Conversion Findings The City's Condominium Conversion Ordinance (Section 12-905-e) provides that the following findings must be considered prior to approval of any application for condominium conversion. The findings represent one basis for the staff recommendation in this report, and should be considered by the Commission and Council in the review of the application. In each case, an application for condominium conversion may be denied if one or more of the following findings are made: 1. The overall design and physical condition of the condominium conversion does not achieve a high degree of appearance, comfort, safety, and utility. 2. The cumulative effect of the condominium conversion would cause a significant percentage of low- and moderate-income rental units to be removed from the city's housing stock. 3. The tenant relocation and assistance plan proposed by an applicant will not sufficiently reduce the detrimental impact of the conversion on tenants, including special classes of tenants (elderly, handicapped, students, families with young children, and members of low income groups). 4. Vacancies have been caused by the applicant for the purpose,of preparing the project for conversion, by means of substantive rent increases, evictions, or terminations of tenancy. 5. Approval of the proposed conversion would cause displacement of any special classes of tenants (as noted above No. 3) in an area without sufficient available comparable replacement housing. 6. The subdivider has engaged in discriminatory rental practices against groups referred to in No. 3, above. REPORT TO THE CITY COUNCIL "Emerald Estates"Condominium Conversion Application Vesting Tentative Tract Map No. 5342 January 11, 2005 Page S 7. Approval of the condominium conversion would be inconsistent with the purposes of the Condominium Conversion Ordinance and with the general health and well-being of city residents. Subdivision Map Act Findings The Subdivision Map Act (California Government Code Section 66410 et seq.) requires that a proposed subdivision for condominium conversion purposes not be approved unless it is found to be consistent with the General Plan and any applicable specific plan policies related to condominium conversions. The City's General Plan Housing Element contains policies related to condominium conversion generally similar to the condominium conversion ordinance findings noted above. The 2025 Fresno General Plan and Roosevelt Community Plan promote a diversified housing market, which is necessary to encourage residential development in the surrounding area. Staff concludes approval of the submitted condominium conversion application would be consistent with city plans and policies related to condominium conversion in the Roosevelt Community Plan Area. The Subdivision Map Act, Section 66427.1, further requires that the local legislative body (City Council) find that all tenants have received a 60-day notice of intent to convert (which staff has verified). The state law also requires that the Council find that each tenant and each person applying for rental of a unit has, or will have, received all notices and rights required by State law (compliance mandated by city ordinance). Further findings must be made at final map approval. Additionally, State law provides that any subdivision application be denied if it is found that the site is unsuitable, the natural environment will be damaged, there are problems related to public health and safety or public easements, or that feasible energy conservation measures are not provided for. Staff concludes approval of the application would be consistent with these findings. The tentative tract map, subject to the recommended conditions of approval dated December 15, 2004, complies with the design and property development standards of the Zoning Ordinance and local Subdivision Ordinance. Based upon the plans and information submitted by the applicant and the recommended conditions of project approval, staff has determined that these findings can be made. Action by the Planning Commission regarding the condominium conversion application and the proposed tentative tract map is a recommendation to the City Council. CONCLUSION The appropriateness of the proposed project has been examined with the respect to its consistency with goals and policies of the 2025 Fresno General Plan, Roosevelt Community Plan, and the Condominium Conversion Ordinance; its compatibility with surrounding uses; and, its avoidance of potentially significant adverse environmental impacts. These factors have been evaluated as described above and by the accompanying tenant relocation plan, comparable housing availability report, and environmental assessment. Upon consideration of this evaluation, it can be concluded that the Condominium Conversion Application and Vesting Tentative Tract Map No. 5342 is appropriate for the project site. REPORT TO THE CITY COUNCIL "Emerald Estates" Condominium Conversion Application Vesting Tentative Tract Map No. 5342 January 11, 2005 Page 9 K:\Common\Master Files-Tract Maps\Tract 5342 Emerald Estate Condo Conversion\T-5342 Report to CC 1-04-05.doc Attachments: Vicinity Map 2002 Aerial Photograph of project site Vesting Tentative Tract Map No. 5342 (Exhibit A) dated June 1, 2004 Site Plan for the Condominium Conversion Application (Exhibit B) dated June 1, 2004 Conditions of Approval for Vesting Tentative Tract Map No. 5342 dated December 15, 2004, including letters from Fresno Metropolitan Flood Control District (8/19/04), Change of Use/Occupancy Investigation Report (7/1/04), Public Works Department, Engineering Division (10/1/04), Public Works Department (8/18/04), Planning and Development Parking Lot Shading Standards -Letter from Caltrans dated August 4, 2004 Environmental Assessment No. T-5342 (Finding of Categorical Exemption) issued on December 9, 2004 Planning Commission Resolution No. 12137 City Council Resolution .- ' $ ,. .1.�: ter_ AV . 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