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Home My WebLink About2023-09-12 City Council Agenda PacketCITY COUNCIL Special Meeting Tuesday, September 12, 2023 Council Chambers & Hybrid 6:00 PM Amended Agenda Amended agenda items appear below in RED Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833 PUBLIC COMMENTS Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to city.council@CityofPaloAlto.org and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. TIME ESTIMATES Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. CALL TO ORDER This meeting will be called to order in honor of California Admissions Day and Suicide Prevention Awareness Week. CLOSED SESSION (6:00 ‐ 8:00 PM) 1.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal. Gov. Code section 54957(b) Titles: City Manager and City Attorney AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (8:00 PM ‐ 8:15 PM) Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (8:15 PM ‐ 8:20 PM) Members of the public may not speak to the item(s). BREAK ACTION ITEMS (8:20 ‐ 9:50 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 2.Quasi‐Judicial/Legislative. 3200 Park Boulevard/340 Portage [22PLN‐00287 and 22PLN‐ 00288]: Adoption of a Resolution Certifying an EIR, Adopting Findings of Overriding Considerations, and Adopting a Mitigation Monitoring and Reporting Program; Approval of Applicant’s Request for a Development Agreement, Comprehensive Plan Amendment, Rezoning to Planned Community Zones, and a Vesting Tentative Map with Exceptions to the Private Street Width to Allow Redevelopment of a 14.65‐acre site at 200‐404 Portage Avenue, 3040‐3250 Park Boulevard, 3201‐3225 Ash Street and 278 Lambert. Environmental Assessment: A Draft EIR for the 200 Portage Townhome Development Project was Circulated September 16, 2022 through November 15, 2022. A Revised Final EIR was Made Available for Public Review on June 2, 2023. The Proposed Development Agreement and Associated Actions is Evaluated as Alternative 3 in the Draft EIR. For More Information Contact the Project Planner, Claire Raybould at Claire.Raybould@Cityofpaloalto.org. Supplemental Report added – Limited Public Testimony on the Supplemental Material may be taken at the discretion of the Council at the September 12 City Council Meeting. The report for this item can be found here*. On Sept 5 the Council Received Presentations and Public Testimony; the Meeting Was Continued to Sept 12 for Council Deliberation and Action ‐ No Public Testimony Will be Heard on Sept 12. *https://www.cityofpaloalto.org/files/assets/public/agendas‐minutes‐ reports/agendas‐minutes/city‐council‐agendas‐minutes/2023/cmr‐2306‐1663.pdf 2.Supplemental Memo ‐ Financial Analysis Prepared by Keyser Marsten Associates ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Policy & Services Committee September 12, 2023 CANCELED Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. th 1 Special Meeting Se ptember 12, 2023 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILSpecial MeetingTuesday, September 12, 2023Council Chambers & Hybrid6:00 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATES Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. CALL TO ORDER This meeting will be called to order in honor of California Admissions Day and Suicide Prevention Awareness Week. CLOSED SESSION (6:00 ‐ 8:00 PM) 1.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal. Gov. Code section 54957(b) Titles: City Manager and City Attorney AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (8:00 PM ‐ 8:15 PM) Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (8:15 PM ‐ 8:20 PM) Members of the public may not speak to the item(s). BREAK ACTION ITEMS (8:20 ‐ 9:50 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 2.Quasi‐Judicial/Legislative. 3200 Park Boulevard/340 Portage [22PLN‐00287 and 22PLN‐ 00288]: Adoption of a Resolution Certifying an EIR, Adopting Findings of Overriding Considerations, and Adopting a Mitigation Monitoring and Reporting Program; Approval of Applicant’s Request for a Development Agreement, Comprehensive Plan Amendment, Rezoning to Planned Community Zones, and a Vesting Tentative Map with Exceptions to the Private Street Width to Allow Redevelopment of a 14.65‐acre site at 200‐404 Portage Avenue, 3040‐3250 Park Boulevard, 3201‐3225 Ash Street and 278 Lambert. Environmental Assessment: A Draft EIR for the 200 Portage Townhome Development Project was Circulated September 16, 2022 through November 15, 2022. A Revised Final EIR was Made Available for Public Review on June 2, 2023. The Proposed Development Agreement and Associated Actions is Evaluated as Alternative 3 in the Draft EIR. For More Information Contact the Project Planner, Claire Raybould at Claire.Raybould@Cityofpaloalto.org. Supplemental Report added – Limited Public Testimony on the Supplemental Material may be taken at the discretion of the Council at the September 12 City Council Meeting. The report for this item can be found here*. On Sept 5 the Council Received Presentations and Public Testimony; the Meeting Was Continued to Sept 12 for Council Deliberation and Action ‐ No Public Testimony Will be Heard on Sept 12. *https://www.cityofpaloalto.org/files/assets/public/agendas‐minutes‐ reports/agendas‐minutes/city‐council‐agendas‐minutes/2023/cmr‐2306‐1663.pdf 2.Supplemental Memo ‐ Financial Analysis Prepared by Keyser Marsten Associates ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Policy & Services Committee September 12, 2023 CANCELED Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. th 2 Special Meeting September 12, 2023 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILSpecial MeetingTuesday, September 12, 2023Council Chambers & Hybrid6:00 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERThis meeting will be called to order in honor of California Admissions Day and SuicidePrevention Awareness Week.CLOSED SESSION (6:00 ‐ 8:00 PM)1.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal. Gov. Code section54957(b) Titles: City Manager and City AttorneyAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (8:00 PM ‐ 8:15 PM)Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of OralCommunications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (8:15 PM ‐ 8:20 PM)Members of the public may not speak to the item(s).BREAKACTION ITEMS (8:20 ‐ 9:50 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.2.Quasi‐Judicial/Legislative. 3200 Park Boulevard/340 Portage [22PLN‐00287 and 22PLN‐00288]: Adoption of a Resolution Certifying an EIR, Adopting Findings of OverridingConsiderations, and Adopting a Mitigation Monitoring and Reporting Program; Approvalof Applicant’s Request for a Development Agreement, Comprehensive Plan Amendment,Rezoning to Planned Community Zones, and a Vesting Tentative Map with Exceptions tothe Private Street Width to Allow Redevelopment of a 14.65‐acre site at 200‐404 PortageAvenue, 3040‐3250 Park Boulevard, 3201‐3225 Ash Street and 278 Lambert.Environmental Assessment: A Draft EIR for the 200 Portage Townhome DevelopmentProject was Circulated September 16, 2022 through November 15, 2022. A Revised FinalEIR was Made Available for Public Review on June 2, 2023. The Proposed DevelopmentAgreement and Associated Actions is Evaluated as Alternative 3 in the Draft EIR. For More Information Contact the Project Planner, Claire Raybould at Claire.Raybould@Cityofpaloalto.org. Supplemental Report added – Limited Public Testimony on the Supplemental Material may be taken at the discretion of the Council at the September 12 City Council Meeting. The report for this item can be found here*. On Sept 5 the Council Received Presentations and Public Testimony; the Meeting Was Continued to Sept 12 for Council Deliberation and Action ‐ No Public Testimony Will be Heard on Sept 12. *https://www.cityofpaloalto.org/files/assets/public/agendas‐minutes‐ reports/agendas‐minutes/city‐council‐agendas‐minutes/2023/cmr‐2306‐1663.pdf 2.Supplemental Memo ‐ Financial Analysis Prepared by Keyser Marsten Associates ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Policy & Services Committee September 12, 2023 CANCELED Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2.For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3.Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4.Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. th 3 Special Meeting Se ptember 12, 2023 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILSpecial MeetingTuesday, September 12, 2023Council Chambers & Hybrid6:00 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERThis meeting will be called to order in honor of California Admissions Day and SuicidePrevention Awareness Week.CLOSED SESSION (6:00 ‐ 8:00 PM)1.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal. Gov. Code section54957(b) Titles: City Manager and City AttorneyAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (8:00 PM ‐ 8:15 PM)Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of OralCommunications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (8:15 PM ‐ 8:20 PM)Members of the public may not speak to the item(s).BREAKACTION ITEMS (8:20 ‐ 9:50 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.2.Quasi‐Judicial/Legislative. 3200 Park Boulevard/340 Portage [22PLN‐00287 and 22PLN‐00288]: Adoption of a Resolution Certifying an EIR, Adopting Findings of OverridingConsiderations, and Adopting a Mitigation Monitoring and Reporting Program; Approvalof Applicant’s Request for a Development Agreement, Comprehensive Plan Amendment,Rezoning to Planned Community Zones, and a Vesting Tentative Map with Exceptions tothe Private Street Width to Allow Redevelopment of a 14.65‐acre site at 200‐404 PortageAvenue, 3040‐3250 Park Boulevard, 3201‐3225 Ash Street and 278 Lambert.Environmental Assessment: A Draft EIR for the 200 Portage Townhome DevelopmentProject was Circulated September 16, 2022 through November 15, 2022. A Revised FinalEIR was Made Available for Public Review on June 2, 2023. The Proposed DevelopmentAgreement and Associated Actions is Evaluated as Alternative 3 in the Draft EIR. ForMore Information Contact the Project Planner, Claire Raybould atClaire.Raybould@Cityofpaloalto.org. Supplemental Report added – Limited PublicTestimony on the Supplemental Material may be taken at the discretion of the Council atthe September 12 City Council Meeting.The report for this item can be found here*. On Sept 5 the Council ReceivedPresentations and Public Testimony; the Meeting Was Continued to Sept 12 forCouncil Deliberation and Action ‐ No Public Testimony Will be Heard on Sept 12.*https://www.cityofpaloalto.org/files/assets/public/agendas‐minutes‐reports/agendas‐minutes/city‐council‐agendas‐minutes/2023/cmr‐2306‐1663.pdf2.Supplemental Memo ‐ Financial Analysis Prepared by Keyser Marsten AssociatesADJOURNMENTOTHER INFORMATIONStanding Committee Meetings this week Policy & Services Committee September 12, 2023 CANCELEDPublic Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2.For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3.Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4.Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. th 4 Special Meeting September 12, 2023 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. City Council Supplemental Report From: Jonathan Lait, Planning Director Meeting Date: September 12, 2023 Item Number: 2 Report #:2309-1992 TITLE Supplemental Memo - Financial Analysis Prepared by Keyser Marsten Associates ANALYSIS On Tuesday, September 5 the City Council directed release of the financial analysis completed for the proposed development. As was communicated at that meeting, the information is difficult to interpret and staff has not had the opportunity to develop a narrative. This memo transmits two documents prepared by Keyser Marsten Associates. The first document is a comparative analysis of three different development proposals that were considered by the ad hoc. The Development Agreement project is consistent with "Concept G." The second document is an updated "code compliant baseline" requested by staff in November 2022 to provide an equal amount of residential development in the “code compliant” project and the Development Agreement project. Recent staff reports have utilized this updated baseline in describing financial analysis of the project. ATTACHMENTS Attachment A: 6.7.22 Financial Analysis Attachment B: 11.22.22 Financial Analysis APPROVED BY: Jonathan Lait, Planning Director Item 2 Item 2 Supplemental Report Item 2: Staff Report Pg. 1 Packet Pg. 5 of 7 SOBRATO (3/9)SOBRATO 5/25 CITY (3/21) CONCEPT F CONCEPT G 5% @ 80%, 7.5% @ 100%, 7.5% 120% Land Donation + $3.75M CBF Land Donation + Hsg Contribution I.Development Scope A.Revenue Generating Uses Townhome Development Units 99 74 74 Sf Saleable Area 214,155 160,104 160,104 R&D/Office Development Sf of Leasable AreaCannery Building 140,744 140,744 140,744 Ash Building 4,707 4,707 4,707 Audi Building 11,762 11,762 11,762 Total R&D/Office Development 157,213 157,213 157,213 Total Leasable/Saleable Area (Sf)371,368 317,317 317,317 B.Non-Revenue Generating Uses Retail (Sf Leasable Area)2,500 2,500 2,500Community Space (Sf Bldg Area)0 0 0 Open Space (Acres)2.31 2.31 2.31 Land Donation for Housing 0.00 1.08 1.08 Replacement Parking Spaces 325 325 325 II.Pro Forma Analysis Summaries A.Townhome Development Construction Costs Total $96,738,000 $72,546,000 $73,091,000 Per Sf Saleable Area $452 $453 $457 Net Revenue $166,521,000 $145,763,000 $145,763,000 Per Sf Saleable Area $778 $910 $910 Threshold Profit @ 12% Net Revenue $19,983,000 $17,492,000 $17,492,000 Residual Land Value $49,800,000 $55,725,000 $55,180,000 Affordability Gap $30,115,400 $0 $0 B.R&D/Office Development Construction Costs Total $26,569,000 $26,569,000 $26,569,000 Per Sf Leasable Area $169 $169 $169 Stabilized Net Operating Income $9,542,000 $9,542,000 $9,542,000 Project Value Total $159,033,000 $159,033,000 $159,033,000 Per Sf Leasable Area $1,012 $1,012 $1,012 Threshold Profit @ 10% Project Value $15,903,000 $15,903,000 $15,903,000 Residual Land Value $116,561,000 $116,561,000 $116,561,000 III.Residual Land Value Summary Townhome Development $49,800,000 $55,725,000 $55,180,000 R&D/Office Development 116,561,000 116,561,000 116,561,000 Total Residual Land Value $166,361,000 $172,286,000 $171,741,000 IV.Offsets for Replacement Parking Spaces $13,163,000 $13,163,000 $13,163,000 V.Community Benefit Fund Affordable Housing Contribution $5,000,000 Townhome Impact Fees Included in Costs Bridge Contribution 1,000,000 1,000,000 Sobrato Impact Fee + CBF $3,750,000 Total Community Benefit Fund $1,000,000 $3,750,000 $6,000,000 VI.Net Residual Land Value $152,198,000 $155,373,000 $152,578,000 VII.Value Enhancement ComparisonsA.City Code Compliant Project Alternative Development Concept Alternatives $152,198,000 $155,373,000 $152,578,000 City Code Compliant Project 103,766,000 103,766,000 103,766,000 Estimated Value Enhancement $48,432,000 $51,607,000 $48,812,000 B.Original Sobrato Proposal Alternative Development Concept Alternatives $152,198,000 $155,373,000 $152,578,000 Original Sobrato Proposal 171,333,000 171,333,000 171,333,000 Estimated Value Enhancement ($19,135,000)($15,960,000)($18,755,000) Prepared by: Keyser Marston Associates, Inc. File name: 6 7 22 VE Analysis; CC Version Page 1 of 1 Item 2 Attachment A - 6.7.22 Financial Analysis Item 2: Staff Report Pg. 2 Packet Pg. 6 of 7 SUMMARY TABLE RESIDUAL LAND VALUE & VALUE ENHANCEMENT ANALYSIS CODE COMPLIANT COMMERCIAL + 74 TOWNHOMES CANNERY COMMUNITY BENEFITS ANALYSIS PALO ALTO, CALIFORNIA I.Development Scope A.Revenue Generating Uses Townhome Development Units 74 Sf Saleable Area 160,104 R&D/Office Development Sf of Leasable Area Cannery Building 90,514 Ash Building 4,707 Audi Building 0 Total R&D/Office Development 95,221 Automative Use (Audi Building)11,762 Total Leasable/Saleable Area (Sf)267,087 B.Townhome Development Construction Costs Total $73,091,000 Per Sf Saleable Area $457 Net Revenue $145,763,000 Per Sf Saleable Area $910 Threshold Profit @ 12% Net Revenue $17,492,000 Residual Land Value $55,180,000 C.R&D/Office Development Construction Costs Total $9,444,000 Per Sf Leasable Area $99 Stabilized Net Operating Income $5,779,000 Project Value Total $96,317,000 Per Sf Leasable Area $1,012 Threshold Profit @ 10% Project Value $9,632,000 Residual Land Value $77,241,000 D.Automative Use (Audi Building) Property Value Total $5,307,000 Per Sf Leasable Area $451 II.Residual Land Value Summary Townhome Development 55,180,000 R&D/Office Development 77,241,000 Automotive Use 5,307,000 Total Residual Land Value $137,728,000 IV.Offsets for Replacement Parking Spaces $0 V.Community Benefit Fund Affordable Housing Contribution $10,000,000 Bridge Contribution Sobrato Impact Fee + CBF Total Community Benefit Fund $10,000,000 VI.Net Residual Land Value $127,728,000 VII.Value Enhancement Comparisons A.City Code Compliant Project Alternative Development Concept Alternatives $127,728,000 City Code Compliant Project $103,766,000 Estimated Value Enhancement $23,962,000 Prepared by: Keyser Marston Associates, Inc. File name: 11 22 22 Code Compliant Commercial_74 THs; Sum 8.5 x 11 Page 1 of 1 Item 2 Attachment B - 11.22.22 Financial Analysis Item 2: Staff Report Pg. 3 Packet Pg. 7 of 7