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basic community needs such as housing and commercial <br />uses and which enhance the City's economic and fiscal <br />viability. In addition, the project is consistent with Policy 2.2 of <br />the Land Use Element, which supports commercial uses that <br />accommodate the City's needs for goods and services, <br />including arts production spaces, galleries, and community <br />centers. Furthermore, Policy 2.8 of the Land Use Element <br />promotes the rehabilitation of commercial properties, and <br />encourages increased levels of capital investment. The Santa <br />Ana Arts Collective adaptive reuse project will include <br />significant improvements to a building that has remained <br />underutilized in recent years and will include additional <br />investment in new construction. Finally, Policy 5.5 of the Land <br />Use Element encourages development that is compatible with <br />and supporting of surrounding land uses. The project will be <br />located in a primarily commercial area and its operations will <br />be compatible with the surrounding commercial businesses <br />and their operations. The parking analysis provided for the <br />project and the comparable San Diego Affordable Housing <br />Parking Study indicate that the proposed parking is more <br />than adequate to meet the needs of the site. Conditions of <br />approval will also ensure that the project remains compatible <br />with surrounding land uses. <br />D. In accordance with the California Environmental Quality Act, the proposed <br />project is categorically exempt from CEQA review per Section 15332. The <br />Class 32 exemption applies to projects characterized as infill development <br />meeting the following conditions: the project is consistent with the <br />applicable general plan designation and all applicable general plan <br />policies as well as with applicable zoning designation and regulations; the <br />proposed development occurs within city limits on a project site of no more <br />than five acres substantially surrounded by urban uses; the project site <br />has no value as habitat for endangered, rare or threatened species; <br />approval of the project would not result in any significant effects relating to <br />traffic, noise, air quality, or water quality; and the site can be adequately <br />served by all required utilities and public services. <br />In analyzing the variance application, staff finds that the <br />project qualifies for the Class 32 exemption. The project is <br />consistent with the applicable general plan designation and <br />all applicable general plan policies as well as with applicable <br />zoning designation and regulations through the Adaptive <br />Reuse Ordinance. As proposed, the project will meet the <br />intent and standards of the General Plan Land Use Element <br />and SP -3 zoning district standards. Moreover, the proposed <br />development will take place within city limits and is on a <br />Resolution No. 2016-23 <br />Page 3 of 6 <br />