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Variance Nos. 2012-02 and 2012-03 April 23, 2012 Page 3 The building was occupied by various uses until 2006, when the last tenant, Homestead House f=urniture, vacated the site. The building has remained vacant ever since. In 2007 HD Supply first applied to occupy the building. They submitted an application and plans for site plan review and requested a parking variance. On March 26, 2007 the Planning Commission approved the parking variance (Variance No. 2007-01) and the action was confirmed by the City Council on April 26, 2007. However, due to a shifting economy, HD Supply elected to not move forward at that time. The Santa Ana Municipal Code states that a "variance shall automatically become void after two years from the effective date of such approval when the owner fails to institute an action to erect, build, alter, move or maintain the use of the property as specified in the terms and conditions of the variance" (SAMC Sec. 41-647). The applicant did not move forward with the project during the specified two-year period, nor did they request an extension. As such, HD Supply has decided to move forward with the use and has reapplied for the project. General Plan and Zoning Analysis The General Plan land use designation for the site is Urban Neighborhood (UN), which allows for a variety of uses - including those found in Overlay Zones. The proposed project is consistent with the General Plan. The subject site is located in the Transit Zoning Code (SD-84) zoning district. SD-84 is a zoning designation that has several objectives, including providing for the integration of new development with the rehabilitation of existing structures and providing for the mixture of development and open spaces that situates commerce, work places, residences and civic buildings within walking distance of transit. In addition, it allows for the reuse of existing industrial sites that are within an Industrial Overlay Zone (I-OZ). The project site is located within I-OZ-M2 - Industrial Overlay Zone-Heavy Industrial. This overlay zone refers back to the Santa Ana Municipal Code for permitted uses and development standards within the M2 zone. The M2 zone allows for all uses permitted within the M1 zone, which includes home improvement warehouse stores, such as HD Supply [SAMC Section 41-472(v)]. The project site is within this overlay zone and is therefore consistent with the zoning designation, but considered to be a legal nonconforming site due to its lack of compliance with the Industrial development standards. Proiect Analysis Variance requests are governed by Section 41-638 of the SAMC. Variance requests may be granted when it can be shown that the following can be established: • That there exists a special circumstance related to the property, such as size, shape, topography, location or surroundings. • That the granting of the variance is necessary for the preservation and enjoyment of substantial property rights. 31A-5