Loading...
HomeMy WebLinkAbout2024-10-03 Architectural Review Board Agenda PacketARCHITECTURAL REVIEW BOARD Special Meeting Thursday, October 03, 2024 Council Chambers & Hybrid 10:00 AM Architectural Review Board meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference 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. T h e   m e e t i n g   w i l l   b e   b r o a d c a s t   o n   C a b l e   T V   C h a n n e l   2 6 ,   l i v e   o n YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. Visit https://bit.ly/PApendingprojects to view project plans and details. Board member names, biographies, and archived agendas and reports are available at https://bit.ly/paloaltoARB.  VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96561891491) Meeting ID: 965 6189 1491    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 arb@CityofPaloAlto.org and will be provided to the Board and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson's presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non‐speaking members agree not to speak individually. The Chair may limit Public Comments to thirty (30) minutes for all combined speakers. The Chair may reduce the allowed time to speak for Study Sessions and Action Items to two (2) minutes or less to accommodate a larger number of speakers. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to arb@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. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. CALL TO ORDER/ ROLL CALL PUBLIC COMMENT  Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker. AGENDA CHANGES, ADDITIONS AND DELETIONS The Chair or Board majority may modify the agenda order to improve meeting management. CITY OFFICIAL REPORTS 1.Transmittal of 1) the ARB Meeting Schedule and Attendance Record, 2) Tentative Future Agenda Items and 3) Recently Submitted Projects STUDY SESSION Public Comment is Permitted. Three (3) minutes per speaker. 2.Study Session to Review Potential Amendments to the Regulations for the Housing Incentive Program (HIP) in Title 18 (Zoning Ordinance) of the Palo Alto Municipal Code to Implement Program 3.4 of the Adopted 2023‐2031 Housing Element. APPROVAL OF MINUTES Public Comment is Permitted. Three (3) minutes per speaker. 3.Draft Architectural Review Board Meeting Minutes for September 5, 2024 BOARD MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s). ADJOURNMENT 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 arb@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Board, 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. 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. 3. Spoken public comments using a smart phone will be accepted  through the teleconference meeting. To address the Board, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions above. 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 Board. 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: 965 6189 1491   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. ARCHITECTURAL REVIEW BOARDSpecial MeetingThursday, October 03, 2024Council Chambers & Hybrid10:00 AMArchitectural Review Board meetings will be held as “hybrid” meetings with the option to attendby teleconference/video conference or in person. To maximize public safety while stillmaintaining transparency and public access, members of the public can choose to participatefrom home or attend in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. Masks are strongly encouraged if attending inperson. T h e   m e e t i n g   w i l l   b e   b r o a d c a s t   o n   C a b l e   T V   C h a n n e l   2 6 ,   l i v e   o nYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org. Visit https://bit.ly/PApendingprojects to view project plansand details. Board member names, biographies, and archived agendas and reports are availableat https://bit.ly/paloaltoARB. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96561891491)Meeting ID: 965 6189 1491    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 toarb@CityofPaloAlto.org and will be provided to the Board and available for inspection on theCity’s website. Please clearly indicate which agenda item you are referencing in your subjectline.Spokespersons that are representing a group of five or more people who are identified aspresent at the meeting at the time of the spokesperson's presentation will be allowed up tofifteen (15) minutes at the discretion of the Chair, provided that the non‐speaking membersagree not to speak individually. The Chair may limit Public Comments to thirty (30) minutes forall combined speakers. The Chair may reduce the allowed time to speak for Study Sessions andAction Items to two (2) minutes or less to accommodate a larger number of speakers.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to arb@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. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. CALL TO ORDER/ ROLL CALL PUBLIC COMMENT  Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker. AGENDA CHANGES, ADDITIONS AND DELETIONS The Chair or Board majority may modify the agenda order to improve meeting management. CITY OFFICIAL REPORTS 1.Transmittal of 1) the ARB Meeting Schedule and Attendance Record, 2) Tentative Future Agenda Items and 3) Recently Submitted Projects STUDY SESSION Public Comment is Permitted. Three (3) minutes per speaker. 2.Study Session to Review Potential Amendments to the Regulations for the Housing Incentive Program (HIP) in Title 18 (Zoning Ordinance) of the Palo Alto Municipal Code to Implement Program 3.4 of the Adopted 2023‐2031 Housing Element. APPROVAL OF MINUTES Public Comment is Permitted. Three (3) minutes per speaker. 3.Draft Architectural Review Board Meeting Minutes for September 5, 2024 BOARD MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s). ADJOURNMENT 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 arb@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Board, 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. 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. 3. Spoken public comments using a smart phone will be accepted  through the teleconference meeting. To address the Board, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions above. 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 Board. 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: 965 6189 1491   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. ARCHITECTURAL REVIEW BOARDSpecial MeetingThursday, October 03, 2024Council Chambers & Hybrid10:00 AMArchitectural Review Board meetings will be held as “hybrid” meetings with the option to attendby teleconference/video conference or in person. To maximize public safety while stillmaintaining transparency and public access, members of the public can choose to participatefrom home or attend in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. Masks are strongly encouraged if attending inperson. T h e   m e e t i n g   w i l l   b e   b r o a d c a s t   o n   C a b l e   T V   C h a n n e l   2 6 ,   l i v e   o nYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org. Visit https://bit.ly/PApendingprojects to view project plansand details. Board member names, biographies, and archived agendas and reports are availableat https://bit.ly/paloaltoARB. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96561891491)Meeting ID: 965 6189 1491    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 toarb@CityofPaloAlto.org and will be provided to the Board and available for inspection on theCity’s website. Please clearly indicate which agenda item you are referencing in your subjectline.Spokespersons that are representing a group of five or more people who are identified aspresent at the meeting at the time of the spokesperson's presentation will be allowed up tofifteen (15) minutes at the discretion of the Chair, provided that the non‐speaking membersagree not to speak individually. The Chair may limit Public Comments to thirty (30) minutes forall combined speakers. The Chair may reduce the allowed time to speak for Study Sessions andAction Items to two (2) minutes or less to accommodate a larger number of speakers.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to arb@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.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.CALL TO ORDER/ ROLL CALLPUBLIC COMMENT Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker.AGENDA CHANGES, ADDITIONS AND DELETIONSThe Chair or Board majority may modify the agenda order to improve meeting management.CITY OFFICIAL REPORTS1.Transmittal of 1) the ARB Meeting Schedule and Attendance Record, 2) Tentative FutureAgenda Items and 3) Recently Submitted ProjectsSTUDY SESSIONPublic Comment is Permitted. Three (3) minutes per speaker.2.Study Session to Review Potential Amendments to the Regulations for the HousingIncentive Program (HIP) in Title 18 (Zoning Ordinance) of the Palo Alto Municipal Code toImplement Program 3.4 of the Adopted 2023‐2031 Housing Element.APPROVAL OF MINUTESPublic Comment is Permitted. Three (3) minutes per speaker.3.Draft Architectural Review Board Meeting Minutes for September 5, 2024BOARD MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS ANDAGENDASMembers of the public may not speak to the item(s). ADJOURNMENT 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 arb@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Board, 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. 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. 3. Spoken public comments using a smart phone will be accepted  through the teleconference meeting. To address the Board, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions above. 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 Board. 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: 965 6189 1491   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. Item No. 1. Page 1 of 2 Architectural Review Board Staff Report From: Planning and Development Services Director Lead Department: Planning and Development Services Meeting Date: October 3, 2024 Report #: 2409-3481 TITLE Transmittal of 1) the ARB Meeting Schedule and Attendance Record, 2) Tentative Future Agenda Items and 3) Recently Submitted Projects RECOMMENDATION Staff recommends the Architectural Review Board (ARB) review and comment as appropriate. BACKGROUND The attached documents are provided for informational purposes. The Board may review and comment as it deems appropriate. If individual Board members anticipate being absent from a future meeting, it is requested that this be brought to staff’s attention when considering this item. The first attachment provides a meeting and attendance schedule for the current calendar year. Also included are subcommittee assignments, which are assigned by the ARB Chair as needed. The second attachment is a Tentative Future Agenda that provides a summary of upcoming projects or discussion items. The hearing dates for these items are subject to change. The attachment also has a list of pending ARB projects and potential projects. Approved projects can be found on the City’s Building Eye webpage at https://paloalto.buildingeye.com/planning. Any party, including the applicant, may request a hearing by the ARB on the proposed director’s decision(s) within the 10-day or 14-day appeal period by filing a written request with the planning division. There shall be no fee required for requesting such a hearing. However, there is a fee for appeals. Pursuant to 18.77.070(b)(5) any project relating to the installation of cabinets containing communications service equipment or facilities, pursuant to any service subject to Palo Alto Municipal Code Chapter 2.11, Chapter 12.04, Chapter 12.08, Chapter 12.09, Chapter 12.10, or Chapter 12.13 is not eligible for a request for hearing by any party, including the applicant. Item 1 Staff Report     Packet Pg. 4     Item No. 1. Page 2 of 2 No action is required by the ARB for this item. ATTACHMENTS Attachment A: 2024 & 2025 Meeting Schedule & Assignments Attachment B: Tentative Future Agenda and New Projects List AUTHOR/TITLE: ARB Liaison1 & Contact Information Jodie Gerhardt, AICP, Manager of Current Planning (650) 329-2575 Jodie.Gerhardt@CityofPaloAlto.org 1 Emails may be sent directly to the ARB using the following address: arb@CityofPaloAlto.org. Item 1 Staff Report     Packet Pg. 5     Architectural Review Board 2024 & 2025 Meeting Schedule & Assignments 2024 Meeting Schedule Meeting Dates Time Location Status Planned Absences 1/4/2024 8:30 AM Hybrid Cancelled 1/18/2024 8:30 AM Hybrid Regular 2/1/2024 8:30 AM Hybrid Cancelled 2/15/2024 8:30 AM Hybrid Regular 2/29/2024 9:00 AM Hybrid Retreat 3/7/2024 8:30 AM Hybrid Regular 3/21/2024 8:30 AM Hybrid Canceled 4/4/2024 8:30 AM Hybrid Regular 4/18/2024 8:30 AM Hybrid Regular 5/2/2024 8:30 AM Hybrid Regular 5/16/2024 8:30 AM Hybrid Regular Rosenberg 6/6/2024 8:30 AM Hybrid Regular Chen 6/20/2024 8:30 AM Hybrid Regular Adcock, Rosenberg 7/4/2024 8:30 AM Hybrid Cancelled 7/18/2024 8:30 AM Hybrid Regular 8/1/2024 8:30 AM Hybrid Canceled 8/15/2024 8:30 AM Hybrid Regular 9/5/2024 8:30 AM Hybrid Regular 9/19/2024 8:30 AM Hybrid Regular 10/3/2024 10:00 AM Hybrid Special 10/17/2024 8:30 AM Hybrid Regular 11/7/2024 8:30 AM Hybrid Regular 11/21/2024 8:30 AM Hybrid Regular 12/5/2024 8:30 AM Hybrid Regular 12/19/2024 8:30 AM Hybrid Regular 2024 Ad Hoc Committee Assignments Assignments will be made by the ARB Chair January February March April May June Hirsch, Adcock 4/4 Baltay, Hisrch 6/6 July August September October November December Hirsch, Adcock 8/15 Item 1 Attachment A: 2024 & 2025 Meeting Schedule & Assignments     Packet Pg. 6     Architectural Review Board 2024 & 2025 Meeting Schedule & Assignments 2025 Meeting Schedule Meeting Dates Time Location Status Planned Absences 1/2/2025 8:30 AM Hybrid Cancelled 1/16/2025 8:30 AM Hybrid Regular 2/6/2025 8:30 AM Hybrid Regular 2/20/2025 8:30 AM Hybrid Regular 3/6/2025 8:30 AM Hybrid Regular 3/20/2025 8:30 AM Hybrid Regular 4/3/2025 8:30 AM Hybrid Regular 4/17/2025 8:30 AM Hybrid Regular 5/1/2025 8:30 AM Hybrid Regular 5/15/2025 8:30 AM Hybrid Regular 6/5/2025 8:30 AM Hybrid Regular 6/19/2025 8:30 AM Hybrid Regular 6/20/2025 8:30 AM Hybrid Regular 7/3/2025 8:30 AM Hybrid Regular 7/17/2025 8:30 AM Hybrid Regular 8/7/2025 8:30 AM Hybrid Regular 8/21/2025 8:30 AM Hybrid Regular 9/4/2025 8:30 AM Hybrid Regular 9/18/2025 8:30 AM Hybrid Regular 10/2/2025 8:30 AM Hybrid Regular 10/16/2025 8:30 AM Hybrid Regular 11/6/2025 8:30 AM Hybrid Regular 11/20/2025 8:30 AM Hybrid Regular 12/4/2025 8:30 AM Hybrid Regular 12/18/2025 8:30 AM Hybrid Regular Item 1 Attachment A: 2024 & 2025 Meeting Schedule & Assignments     Packet Pg. 7     Palo Alto Architectural Review Board Tentative Future Agenda The following items are tentative and subject to change: Meeting Dates Topics November 7, 2024 •762 San Antonio: Architectural Review (1st hearing) •4075 El Camino Way: Planned Community Zoning Amendment (2nd hearing) November 21, 2024 •824 San Antonio Road: Architectural Review (2nd hearing) Pending ARB Projects The following items are pending projects and will be heard by the ARB in the near future. The projects can be viewed via their project webpage at bit.ly/PApendingprojects or via Building Eye at bit.ly/PABuildingEye. Permit Type Submitted Permit # Project Mgr.Address Type Work Description Assigned Ad Hoc AR Major - Board 9/16/20 20PLN- 00202 CRAYBOU 250 Hamilton Ave. Bridge On-hold for redesign - Allow the removal and replacement of the Pope-Chaucer Bridge over San Francisquito Creek with a new structure that does not obstruct creek flow to reduce flood risk. The project will also include channel modifications. Environmental Assessment: The SFCJPA, acting as the lead agency, adopted a Final EIR on 9/26/19. Zoning District: PF. __ AR Major - Board Zone Change 12/21/21 21PLN- 00341 EKALLAS 660 University Mixed use ARB 1st formal 12/1/22, ARB recommended approval 4/22; Applicant is revising project plans - Planned Community (PC), to Combine 3 Parcels (511 Byron St, __ Item 1 Attachment B: Tentative Agenda and Future Projects     Packet Pg. 8     24PLN- 00239 680 University 660 University Ave, 680 University Ave/500 Middlefield Rd), Demolish Existing Buildings (9,216 SF Office) and Provide a New Four Story Mixed-Use Building with Ground Floor Office (9,115 SF) and Multi-Family Residential (all floors) Including a Two Level Below-Grade Parking Garage. Proposed Residential Proposed Residential (42,189 SF) Will Include 65 Units (47 Studios, 12 1-Bedroom, 6 2-Bedroom). On-hold, staff working on 660 University project. Request for Major Architectural Review to Allow SB330/Builder’s Remedy project and construct a new six (6) story mixed-use building. The proposal includes ground floor non-residential (5,670 SF), ground and sixth floor office (9,126 SF), multi-family residential (all floors), and a two level below-grade parking garage. Proposed residential will include 88 units with 20% on-site BMR. Major Architectural Review 6/8/2023 23PLN- 00136 23PLN- 00277 (Map) 23PLN- 00003 and - 00195 – (SB 330) 24PLN- 00230 (Code compliant version) 24PLN- 00231 (Map) GSAULS 3150 El Camino Real Housing - 380 units Focus Area Compliant Application Filed 8/7/24; NOI Sent 9/7/24. Pending Resubmittal. Tentative ARB 11/7/2024. Request for Major Architectural Review for construction of a 380-unit Multi-family Residential Rental Development with 10% Below Market Rate. The project includes a 456,347 square foot apartment building with a 171,433 square foot garage that extends to 84 feet in height. Staff is reviewing the project to ensure the requested concessions and waivers are in accordance with the State Density Bonus laws. Rosenberg, Hirsch Reported out 5/4 on SB 330 Rosenberg, Hirsch Reported out on 8/17 Major Architectural Review 7/19/2023 23PLN- 00181 EKALLAS 824 San Antonio Road Housing – 16 senior units, 12 convalescent units 12/21/23 ARB hearing; Revised Plans resubmitted 9/25/24; Tentative ARB Scheduled 11/7. Request for Major Architectural Review to allow the Demolition of an existing 2-Story office building and the new construction of a 4-Story private residential senior living facility, including 15 independent dwelling units, 12 assisted living dwelling units and 1 owner occupied unit. Common space amenities on all floors, underground parking, and ground ___ Item 1 Attachment B: Tentative Agenda and Future Projects     Packet Pg. 9     floor commercial space. Zoning District: CS (Commercial Services). PC Amendment 8/9/2023 23PLN- 00202 EKALLAS 4075 El Camino Way Commercial - 16 additional convalescent units Community Meeting in October. 2/28/24 and 6/12/24 PTC hearing, 7/18/24 ARB hearing, tentative 10/17/24, future PTC and Council hearings needed. Request for a Planned Community Zone Amendment to Allow New Additions to an existing Assisted Living and Memory Care Facility consisting of 121 Units. The additions include 16 Additional Assisted Living Dwelling Units; 5 Studios and 9 One Bedrooms. Zoning District: PC-5116 Baltay, Chen reported out 6/1 Major Architectural Review 1/10/2024 24PLN- 00012 GSAULS 3265 El Camino Real Housing NOI Sent 1/10/24. PTC 4/10/24; ARB 4/22/24; Applicant submitted revised project 9/13/24 with 55 Units; Tentative ARB December 2024. Request for rezoning to Planned Community (PC)/Planned Home Zoning (PHZ). New construction of a 5-story 100% affordable multifamily housing development with 44 dwelling units and ground level lobby and parking. Zoning District: CS. Rosenberg, Thompson reported out 8/17 on prescreening Rosenberg/ Hirsch Major Architectural Review 3/6/2024 24PLN- 00064 CHODGKI 640 Waverley Mixed-Use NOI Sent 4/5/24. ARB 6/6/24. Pending Resubmittal; Preparing 15183 Exemption. Tentative ARB January 2025. Request for a Major Architectural Review Board application to allow the construction of a new four-story, mixed use commercial and residential building with below grade parking. The ARB held a preliminary review on 6/15/23. Environmental Assessment: Pending. Zoning District: CD-C(P). Rosenberg, Hirsch Minor - Board Level Architectural Review 3/7/2024 24PLN- 00066 THARRISO N 180 El Camino Real Restaurant NOI Sent 4/10. Pending Resubmittal. Minor Board Level Architectural Review to allow exterior upgrades for a restaurant tenant (Delarosa); to include new exterior pergola over seating and planters in existing location. New metal awnings over main entrance to replace existing acrylic and new metal awning at rear to replace existing fabric awning. New signage and replace existing light fixtures. Environmental Assessment: Pending. Zoning District: (CC) Major Architectural Review – Builder’s Remedy 4/02/2024 24PLN- 00100 24PLN- 00223 (Map) CHODGKI 156 California Mixed-Use NOI Sent 5/2/2024; 60-day Formal Comments sent 6/1; Resubmitted, Request for Supplemental Info Sent 7/11; Pending Resubmittal. Request for Major Architectural Review in accordance with California Government Code 65589.5(D)(5) “Builders Remedy" which proposes to redevelop two lots located at 156 California Avenue and Park Blvd. Lot A, 156 California Ave ( 1.14 ACRE) is situated at the corner of Park and Baltay, Adcock Item 1 Attachment B: Tentative Agenda and Future Projects     Packet Pg. 10     California, Lot B, Park Blvd. (0.29 ACRE) is at the corner of Park and Cambridge Avenue; the reinvention of both sites will include the conversion of an existing parking lot and Mollie Stone's Grocery Store into a Mixed Use Multi Family Development. This project consists of three integrated structures; (1) 7 Story Podium Building with 5 levels of TYPE IIIB Construction over 2 levels of TYPE I Construction, 15,000 square feet will be dedicated to the Mollie Stone Grocery Store, (1) 17 Story Tower, (1) 11 Story Tower, both Towers will be proposed and conceptualized as TYPE IV Mass Timber Construction. Environmental Assessment: Pending Zoning District: CC(2)(R)(P) and CC(2)(R) (Community Commercial) SB 330 Pre-app submitted 11/21/24 Zone Change 03/28/2024 24PLN- 00095 EKALLAS 70 Encina Housing- 10 Units NOI Sent 4/28/2024. PTC 9/11/24, Plans Pending Resubmittal, Tentative 1st ARB November 2024. Request for Planned Community Zone Change (PHZ) to allow construction of a new 3-story, 22,552 sf building (1.86 FAR); to include ten (10) residential condominium units organized around a common access court that provides both vehicular and pedestrian access and full site improvements to replace the existing surface parking area. Environmental Assessment: Pending. Zoning District: CC, (Community Commercial). ARB prelim held 12/7 Hirsch, Adcock Major Architectural Review – Builder’s Remedy 4/23/2024 24PLN- 00120 EKALLAS 762 San Antonio Housing -198 Units NOI Sent 5/23/2024. Tentative ARB October 2024. Request for Major Architectural Review to Allow CA GOV CODE 65589.5(D)(5) “Builders Remedy" which proposes the demolition of three existing commercial buildings and the construction of a 7-story multi-family residential building containing 198 rental apartments. This is 100% Residential Project. Environmental: Pending. Zoning District: (CS) AD. Baltay, Chen Housing- Streamlined Housing Development Review 5/28/2024 24PLN- 00152 24PLN- 00023 (Prelim) EKALLAS 4335- 4345 El Camino Housing-29 Units NOI Sent 6/27/2024. ARB 9/19/24. Pending Resubmittal of Plans. Request for Major Architectural Review to allow a housing development project on two noncontiguous lots (4335 & 4345 El Camino Real) including the demolition of an existing commercial building (4335 El Camino Real) and an existing motel building (4345 El Camino Real) and construction of 29 three-story attached residential townhome-style condominiums with associated utilities, private streets, landscaping, and amenities. Environmental Assessment: Pending. Zoning District: CS (Service Commercial). Hirsch, Baltay reviewed prelim Item 1 Attachment B: Tentative Agenda and Future Projects     Packet Pg. 11     Major Architectural Review – Builder’s Remedy 6/10/2024 24PLN- 00161 24PLN- 00048 (SB 330) SSWITZER 3781 EL CAMINO REAL Housing 177 units NOI Sent 7/10/2024. Request for Major Architectural Review to demolish multiple existing commercial and residential buildings located at 3727-3737 & 3773-3783 El Camino Real, 378-400 Madeline Court and 388 Curtner Avenue to construct a new seven-story multi-family residential housing development with 177 units. Two levels of above ground parking, rooftop terraces, and tenant amenities are proposed. Environmental Assessment: Pending. Zoning District: CN & RM-30. (Previous SB 330 and Builder’s Remedy: 24PLN-00048) Major Architectural Review – Builder’s Remedy 6/10/2024 24PLN- 00162 24PLN- 00047 (SB 330) GSAULS 3606 EL CAMINO REAL Housing; 335 Units NOI Sent 8/1/2024. Request for Major Architectural Review to demolish multiple existing vacant, commercial, and residential buildings located at 3508, 3516, 3626- 3632 El Camino Real, and 524, 528, 530 Kendall Avenue to construct a new seven-story, multi-family residential housing development project with 335 units. The new residential building will have a two levels of above ground parking, ground floor tenant amenities, and a rooftop terrace facing El Camino Real and Matadero Avenue. Environmental Assessment: Pending. Zoning District: CN, CS, RM-30, RM-40. For More Information (SB 330 and Builder’s Remedy: 24PLN-00047) Major Architectural Review – Builder’s Remedy 7/17/2024 24PLN- 00184 24PLN- 00232 (Map) GSAULS 3400 EL CAMINO REAL Housing (231 units) and Hotel (192 rooms) NOI Sent 8/16/2024 and 9/12/2024; Pending Resubmittal. Major Architectural Review of a Builder's Remedy application to demolish several low-rise retail and hotel buildings located at 3398, 3400, 3450 El Camino Real and 556 Matadero Avenue and replace them with three new seven-to-eight story residential towers, one new seven-story hotel, one new three story townhome, and two new underground parking garages. Three existing hotel buildings will remain with one being converted to residential units. 231 total residential units and 192 hotel rooms. Environmental Assessment: Pending. Zoning District: various (SB330) Minor Board Level Architectural Review and Conditional Use Permit 9/24/2024 24PLN- 00263 CHODGKI 3950 Fabian Way Private Education Request for Minor Board Level Architectural Review for exterior modifications to an existing 32,919 square foot, 2-story commercial building, site modifications and a new approximately 4200 sf addition to the North side. The project also includes a Request for a Conditional Use Permit for the change of use to private education to accommodate Girls Middle school. Environmental Assessment: Pending. Zoning District: GM. Item 1 Attachment B: Tentative Agenda and Future Projects     Packet Pg. 12     Potential Projects This list of items are pending or recently reviewed projects that have 1) gone to Council prescreening and would be reviewed by the ARB once a formal application is submitted and/or 2) have been reviewed by the ARB as a preliminary review and the City is waiting for a formal application. Permit Type Submitted Permit # Project Mgr.Address Type Work Description Assigned Ad- Hoc Preliminary Architectural Review 7/6/2023 23PLN- 00171 CHODGKI 425 High Street Commercial Preliminary Hearing Held 9/7; waiting on formal application submittal. Request for Preliminary Architectural Review to provide feedback on a proposal to add a new 4th floor (2,632 square feet) for either a new office use (existing hotel to remain) or to provide eight new guest rooms to the existing three-story Hotel Keen structure. Environmental Assessment: Not a Project. Zoning District: CD-C (P) (Downtown Commercial-Community with Pedestrian Combining District). Preliminary Architectural Review 8/29/2023 23PLN- 00231 CHODGKI 616 Ramona Commercial Preliminary ARB hearing held 11/2; waiting on formal application submittal. Request for Preliminary Architectural Review to Allow the Partial Demolition and remodel of an Existing 8,357 square foot, Commercial Building with addition using TDR and exempt floor area earned from ADA Upgrades. Preliminary Architectural Review 12/19/2023 23PLN- 00339 EKALLAS 1066 E Meadow Private School ARB Hearing 1/18/24; pending formal application. Request for Preliminary Architectural Review to Consider the Deconstruction of an Existing 35,000 Square Foot Commercial Building, and Construction of a new 2-Story, 46,000 sf School Building. It Will Contain Classrooms, Administrative Offices, and a Multi-Purpose Room. Site Improvements Include Parking, a Play Area, and a Rooftop Garden. Zoning District: ROLM Rosenberg, Adcock SB 330 Pre- Application 4/10/2024 24PLN- 00107 GSAULS 531 Stanford Housing SB 330 Pre-Application for a housing development project that proposes 30 new detached single-family homes and six new below- market-rate units in a standalone multi-family building on the approx. 1.18-acre project site at the intersection of Stanford Avenue and El Camino Real. 20% of the units would be deed restricted for lower-income households. Zoning: RM-30. Environmental Assessment: Pending. Item 1 Attachment B: Tentative Agenda and Future Projects     Packet Pg. 13     SB 330 Pre- Application 4/15/2023 24PLN- 00111; 24PLN- 00112 GSAULS 3997 Fabian Housing – up to 350 units SB 330 Pre-Application - Request for a 292 or 350-unit apartment development in an 8-story structure. Environmental Assessment: Pending. Zoning District: GM (General Manufacturing). Note: project has not changed but previous SB 330 pre-apps expired. Chen, Hirsch reported out 8/17 SB 330 Pre- Application 6/19/2024 24PLN- 00171 GSAULS 4015 Fabian SB 330 Pre-Application - Housing development project including demolition of existing structures and development of 100 residential apartment units with supporting use, including amenity spaces, lobby, leasing office, and a parking garage with one space per unit. Zoning District: GM (General Manufacturing). Proposed project consists of 100 for-rent residential apartment units with supporting use that include amenity spaces, lobby, leasing, and parking in a garage at one space per unit. SB 330 Pre- Application 7/8/2024 24PLN- 00181 JGERHAR 2300 Geng SB 330 Pre-Application - Housing development project including demolition of existing structures and development of 159 residential units located at 2100-2400 Geng Road. Zoning District: ROLM(E)(D)(AD). Item 1 Attachment B: Tentative Agenda and Future Projects     Packet Pg. 14     Item No. 2. Page 1 of 13 Architectural Review Board Staff Report From: Planning and Development Services Director Lead Department: Planning and Development Services Meeting Date: October 3, 2024 Report #: 2409-3506 TITLE Study Session to Review Potential Amendments to the Regulations for the Housing Incentive Program (HIP) in Title 18 (Zoning Ordinance) of the Palo Alto Municipal Code to Implement Program 3.4 of the Adopted 2023-2031 Housing Element. RECOMMENDATION Staff recommends the Architectural Review Board (ARB) conduct a study session to review a summary of issues and recommendations, and provide feedback on possible changes to development standards and applicability set forth in the Housing Incentive Program (HIP) in Title 18 (Zoning Ordinance) of the Palo Alto Municipal Code (PAMC), with the objective of supporting housing production and improving financial feasibility. EXECUTIVE SUMMARY The 2023-2032 Housing Element, adopted by the City Council on April 15, 2024, and certified by the California Department of Housing and Community Development (HCD) on August 20, 2024, includes Program 3.4: Amendments to the Housing Incentive Program (HIP). This program calls for modifying development standards and extending the program to multifamily residential districts (i.e., RM districts and portions of the Research Office and Limited Manufacturing (ROLM) and General Manufacturing (GM) Districts) to facilitate housing production. Housing Element Program 3.4 also calls for preparation of a feasibility study to analyze physical feasibility of current zoning standards to achieve different housing types (e.g., townhomes, apartments) and financial feasibility of these resulting prototypical housing types. Housing Element Program 3.4 identifies both specific zoning changes and more generalized changes to development standards that necessitate additional analysis. This report presents this analysis of physical and financial feasibility of existing and potential standards described in Housing Element Program 3.4 and concludes that: 1. Base zoning standards (exclusive of recent amendments that modify standards for Housing Element opportunity sites) favor townhome development and are less Item 2 Staff Report     Packet Pg. 15     Item No. 2. Page 2 of 13 conducive to stacked flats (e.g., apartments, condominiums) or mixed-use development with ground-floor retail. This is problematic since market rate townhomes have higher rent and sales price than apartments and stacked flat condos and are therefore out of reach for many households. 2. The housing types that result from current zoning standards (applicable to sites that are not Housing Element opportunity sites) may not be financially feasible in all locations. Collectively, the current zoning standards may result in housing types with too few units to overcome the cost of demolition and construction. 3. To implement Housing Element Program 3.4, the City would need to consider modifications to various physical development standards to allow more residential units, enable the development of stacked flats and residential mixed-use development, and improve financial feasibility. Generally, this represents an additional 1.0 to 2.0 FAR and 10-20 feet of building height. The purpose of the study session is to review the background, research, and options associated with these Zoning Ordinance amendments. Based on feedback from Planning and Transportation Commission (PTC) and the ARB, City staff and consultants will prepare an ordinance for the PTC’s consideration later this year. BACKGROUND The City of Palo Alto Draft 6th Cycle Housing Element aims to implement State Housing Element law, including meeting the Regional Housing Needs Allocation (RHNA) and affirmatively furthering fair housing in Palo Alto. Housing Element Program 3.4 aims to provide incentives for multi-family housing. Although State Housing Element law requires cities to demonstrate physical availability of sites to meet the RHNA, it does not necessarily require demonstration of financial feasibility. However, the State requires that the Housing Element include programs that would encourage housing production and eliminate constraints. To that end, the City engaged planners, architects, and economic analysts at Lexington Planning, Urban Field Studio, and Keyser Marston Associates to analyze the physical and financial feasibility of current and potential zoning standards. These results are highlighted in Attachment B and C which illustrate the physical models and report the financial feasibility findings of this analysis, respectively. Attachment D is a map that identifies the locations where the applicability of the HIP is proposed to be extended. On September 25, 2024, the PTC discussed these potential amendments in a study session. The Commission generally supported modifications to the HIP to facilitate multifamily housing and improve feasibility. The Commission asked for careful consideration of modifications to standards that relate to neighboring properties, such as rear yard setbacks and daylight planes. The Commission also supported retaining retail requirements in key locations, including on South El Camino Real. Item 2 Staff Report     Packet Pg. 16     Item No. 2. Page 3 of 13 Housing Incentive Program The HIP was enacted in 2019 as a local alternative to the State Density Bonus law. It provides development incentives including no residential density restrictions, increased floor area ratios, and increased lot coverage. It requires full Architectural Review but provides for use of the new streamlined review process (one study session with the ARB) when a project meets objective design standards. The HIP does not require additional below-market rate units beyond the City’s existing inclusionary housing requirement. Currently, the only eligibility criterion is that the HIP is only applicable in certain commercial mixed-use districts and locations: •CD-C zone (Downtown); •CC(2) zone (California Avenue); •CN or CS zoned sites on El Camino Real; •CS zoned sites on San Antonio Road between Middlefield Road and East Charleston Road; and •North Ventura (NV) zones (final Council action pending). The City has approved two development projects that utilized the HIP to create a total of 105 residential units.1 However, given recent changes in State Density Bonus Law and other streamlining bills, changes to the HIP are warranted to make sure that the program is providing a real incentive compared to State laws. A 102-unit residential mixed-use development was approved by the City at 788 San Antonio 1 17PLN-00305, a mixed-use project with 3 units at 3585 El Camino Real was the first HIP project. The second HIP project was 19PLN-00079, a 102-unit project at 788 San Antonio Road. Item 2 Staff Report     Packet Pg. 17     Item No. 2. Page 4 of 13 Road. The project, which includes 16 below-market rate units, was awarded additional residential density through the HIP. A three-story approximately 6,252 square foot mixed-use building, including three residential units and 3,126 square feet of office space. This project at 3585 El Camino Real was awarded additional gross floor area. DISCUSSION This discussion section includes a summary of the recent zoning changes adopted pursuant to Housing Element Program 1.1, followed by a summary of the physical and financial feasibility analysis detailed in Attachment B and C, respectively. Next, it distinguishes between planned zoning changes (specific zoning changes to the HIP called out in Housing Element Program 3.4) and potential zoning changes (generalized changes described in Housing Element Program 3.4). While planned changes are straightforward and may not require substantial discussion, the potential changes require input from the ARB and review of the findings presented here. Program 1.1 (RHNA Rezoning) in January 2024 In January 2024, revised zoning standards went into effect on Housing Element Opportunity sites, pursuant to Housing Element Program 1.1: RHNA Rezoning. These changes included modest increases in residential density, FAR, and lot coverage in most zoning districts that allow multi-family housing, as well as increases in building height and reductions in parking in the GM and ROLM districts. However, these changes did not go beyond what was needed to reduce constraints and achieve the densities required by the RHNA. Moreover, these standards only applied to Housing Element opportunity sites; other sites in the City still have lower density Item 2 Staff Report     Packet Pg. 18     Item No. 2. Page 5 of 13 limits. As a result, these zoning modifications may not go far enough on non-Housing Element opportunity sites to incentivize a property owner to redevelop a site with additional housing. Although the changes under Housing Element Program 1.1 represent an important and successful first step to meet Housing Element law and RHNA requirements, development standards in other parts of the City may not generate projects that are financially feasible in the housing market. Chapter 3 of the Housing Element reveals that many of the projects recently entitled or proposed in Palo Alto actually exceed the density allowed under the Zoning Code (see Housing Element Table 3-2: Entitled and Proposed Developments). This is because projects are using the HIP or State Density Bonus Law to obtain density bonuses. Modifying development standards, as called for in Housing Element Program 3.4, can improve the physical and financial feasibility of development, match the housing types that developers are building in the market, and improve predictability for community members and decision-makers about the types of development that the City can expect. A 129-unit affordable housing project approved at 3001-3017 El Camino Real uses State Density Bonus Law to achieve an effective density of 113 dwelling units per acre (du/ac), substantially higher than what is typically achievable in the CS zoning district. Physical and Financial Feasibility Studies to Evaluate Potential Changes to the HIP As required by Housing Element Program 3.4, City staff and consultants prepared physical and financial feasibility studies to determine the types and densities of housing that current zoning Item 2 Staff Report     Packet Pg. 19     Item No. 2. Page 6 of 13 standards2 produce and to determine whether these housing types are likely to be financially feasible for a developer to build. Attachment B illustrates the physical models prepared by architects at Urban Field Studio and planners at Lexington Planning. It reports the high-level financial feasibility findings prepared by economic consultants, Keyser Marston Associates (KMA). Attachment C is the detailed report on KMA’s financial feasibility findings.3 Figure 1 (below) summarizes this process and the outcome of the studies. 2 Notably, these analyses exclude zoning changes that went into effect in January 2024 on Housing Element opportunity sites. These recent changes improve physical and financial feasibility on opportunity sites only. Modifications to the HIP are expected to assist developers/property owners of sites that are not listed as opportunity sites, but will also further improve feasibility on opportunity sites. 3 Financial feasibility findings are based on assumptions about costs, land values, and profits that are averages, and represent KMA’s local research and professional opinions. These assumptions may not reflect the economic situations and assumptions for individual sites and developers, based on their specific values and priorities. Item 2 Staff Report     Packet Pg. 20     Item No. 2. Page 7 of 13 Figure 1: Feasibility Analysis – Process and Outcome Figure 2 (below) illustrates an example of the physical feasibility analysis detailed in Attachment B. Architects modeled what existing standards yield (image and column at left) and then modified various standards to try to increase yield (image and column at right). In general, this process aimed to keep building height increase to no more than 10-20 feet (one to two stories) and retain on-site parking. However, zoning standards are interconnected; there are tradeoffs that the City can consider when evaluating changes to standards. For example, reducing parking can free up space at the ground-level for housing units or commercial spaces without substantial changes to building height. If side/rear setbacks and daylight planes are priorities, then building heights may need to be higher and front/street side setbacks lower to achieve sufficient yields. In the example in Figure 2, the architects increased building height, reduced Item 2 Staff Report     Packet Pg. 21     Item No. 2. Page 8 of 13 the rear setback, modestly reduced the parking requirement, met the open space requirement on top of the podium, and substantially increased the FAR. This results in a shift from four townhome units to 15 apartment units, a change in both density and building type. Figure 2: Excerpt from Physical Feasibility Report (see Attachment B) Item 2 Staff Report     Packet Pg. 22     Item No. 2. Page 9 of 13 Planned HIP Zoning Changes Program 3.4 states the following specific changes to HIP regulations that will be brought forward to the PTC and City Council: 1. Modify Retail Preservation Ordinance requirements: •Retain retail requirements in the GF- and R-combining districts (i.e., Downtown, California Avenue) and nodes on El Camino Real, consistent with the South El Camino Real Design Guidelines. •Waive the retail preservation requirement on housing opportunity sites. •Reduce the retail preservation replacement floor area requirement in other locations (e.g. reduce by half). Note that developers may still choose to provide a mix of uses based on market conditions. 2. Modify HIP parking requirements, consistent with what is allowed under State Density Bonus law: •1 space per studio and 1-bedroom units (same as PAMC standard). •1.5 spaces per 2- and 3-bedroom units (vs. 2 spaces in PAMC). Note that developers may still choose to provide parking in excess of minimum requirements or even if parking is not required, depending on market demand. 4. Expand applicability of the HIP to the RM districts, ROLM, and GM districts (in the northeast portion of the City nearest the Bayshore Freeway and generally bounded by East Charleston Road to the east and Loma Verde Avenue), to allow for this incentive in key locations where multifamily housing is allowed and encouraged. These new locations are shown in Attachment D. Potential HIP Zoning Changes Attachment B describes the range of changes that the City could make to HIP zoning regulations to support housing production, improve financial feasibility, and increase predictability. The discussion below summarizes options that the PTC and ARB could consider to modify development standards and then compares the relative benefits and drawbacks of the HIP vs. State Density Bonus Law. City staff and consultants invite the ARB to consider modifying development standards in the HIP, including: (1) increasing FAR, lot coverage, and building height; and (2) reducing daylight plane, setback, and open space requirements. Collectively, these standards are currently supporting livable spaces and respecting adjacent uses, but may also limit development to townhomes and prevent sufficient unit yields to support financially feasible projects. While Housing Element Program 3.4D calls for these modifications, it does not identify precise changes. Staff is seeking the ARB’s feedback on the potential standards described in the report in Attachment B. Table 1 summarizes the potential height and density changes to the HIP, also Item 2 Staff Report     Packet Pg. 23     Item No. 2. Page 10 of 13 illustrated in Attachment B. It distinguishes between sites that are designated or not designated as Housing Element opportunity sites. These potential standards are at the higher end of the residential density and residential FAR necessary to support development. To facilitate administration by City staff and decision-makers, standards will likely be simplified to allow an additional 2.0 FAR and 1 story/10 feet, etc. in specific zones, as shown in the last column of Table 1. No changes are proposed to the HIP standards for the San Antonio Road (CS zone) or the CD-C (Downtown) zoning districts because both of these areas are or will soon initiate a comprehensive community engagement effort to identify new development standards for housing development, among other land uses. Table 1: Comparison of Existing vs. Potential HIP Maximum Building Height and Residential FAR/Density Standards, by Housing Element Opportunity Site Status Housing Incentive Program (Residential FAR and Building Height Standards – NOTE: this is in addition to allowed commercial floor area) Zoning District Base Standards (Residential FAR and Building Height) Existing (All Sites)Potential Standards Potential Change (from Base Zoning) CD-C 2.0 FAR (HE Opp Site) 1.0 FAR (Non-Opp Site) 3.0 FAR w/ TDR 50-foot height 3.0 Total FAR 50-foot height None proposed due to Downtown Housing Area Plan study N/A CC(2) 1.5 FAR (HE Opp Site) 0.6 FAR (Non-Opp Site) 37-foot height 2.0 FAR 50-foot height 3.5 FAR (HE Opp Site) 2.6 FAR (Non-Opp Site) 60-foot height + 2.0 FAR + 23 feet CS (El Camino) 1.25 FAR (HE Opp Site) 0.6 FAR (Non-Opp Site) 50-foot height 1.5 FAR 50-foot height 3.5 FAR (HE Opp Site) 2.85 FAR (Non-Opp Site) 60-foot height + 2.25 FAR + 10 feet CS (San Antonio) 1.25 FAR/30-40 du/ac (HE Opp Site) 0.6 FAR/30 du/ac (Non-Opp Site) 50-foot height 2.0 FAR 50-foot height None proposed due to San Antonio Corridor Coordinated Area Plan N/A CN (El Camino) 1.25 FAR (HE Opp Site) 0.5 FAR (Non-Opp Site) 40-foot height 1.5 FAR 50-foot height 3.25 FAR (HE Opp Site) 2.5 FAR (Non-Opp Site) 50-foot height + 2.0 FAR + 10 feet ROLM 2.5 FAR/60 ft (Focus Area) 1.5 FAR/45 ft (HE Opp Site) 0.6 FAR/35 ft (Non-Opp Site) N/A 3.5 FAR/60 ft (Focus Area) 2.5 FAR/45 ft (HE Opp Site) 1.6 FAR/35 ft (Non-Opp Site) + 1.0 FAR No height change RM-40 40-50 du/ac (HE Opp Site) 40 du/ac (Non-Opp Site) 1.0 FAR (All Sites) 40-foot height N/A No density limit 3.0 FAR 50-foot height No density limit + 2.0 FAR + 10 feet RM-30 30-50 du/ac (HE Opp Site) 30 du/ac (Non-Opp Site) 0.6 FAR (All Sites) N/A No density limit 2.5 FAR 40-foot height No density limit + 1.4 FAR + 5 feet Item 2 Staff Report     Packet Pg. 24     Item No. 2. Page 11 of 13 35-foot height RM-20 20-50 du/ac (HE Opp Site) 20 du/ac (Non-Opp Site) 0.5 FAR (All Sites) 30-foot height N/A No density limit 2.0 FAR 40-foot height No density limit + 1.5 FAR + 10 feet The HIP can still reflect transition areas, such as areas where these higher density zones abut R- 1 zones, by continuing to enforce daylight plane and height transition standards. However, to accommodate taller heights, daylight planes would need to be adjusted to allow daylight planes to start higher (e.g., raising from 10 feet above grade to 20 feet above grade). PAMC Chapter 18.24 (Objective Standards) provides a model for how to create transitions between lower-height buildings and taller new buildings by requiring a daylight plane that starts at a taller initial height (in this example, 25 feet above grade). Figure 3: Height Transitions and Daylight Planes ARB Discussion Topics City staff asks the ARB to consider whether it supports the following changes as generally directed by Housing Element Program 3.4: Modifications to one or more of the following development standards in the HIP to promote housing production: 1. Increase building heights by 5 to 23 feet over existing standards, depending on the district. Item 2 Staff Report     Packet Pg. 25     Item No. 2. Page 12 of 13 2. Increase FAR by 1.4 to 2.25 over existing standards, depending on the district, to support building height and density increases. 3. Eliminate maximum residential density (i.e., dwelling units/acre) as a standard. 4. Reduce setbacks, especially street-facing setbacks. 5. Increase maximum site/lot coverage. 6. Modify daylight plane limitations, to start step-backs higher up in the building. 7. Allow more flexibility in how open space is provided (e.g., on podiums, rooftops, balconies). 8. Decrease minimum parking requirements, beyond State Density Bonus Law standards. STAKEHOLDER ENGAGEMENT Preparation of the Housing Element included a range of community outreach methods, including surveys, Working Group meetings, community workshops, and public hearings. Hundreds of community members have participated in the Housing Element update over the course of the project. City staff and consultants are working with developers and architects familiar with the City’s regulations to test potential standards. Community members have an opportunity to provide feedback on the draft standards at PTC, ARB, and City Council study sessions and public hearings. ENVIRONMENTAL REVIEW On April 15, 2024, the City Council adopted Resolution No. 10155, approving an Addendum to the Comprehensive Plan Environmental Impact Report (EIR). The addendum analyzed potential environmental impacts of the 6th Cycle Draft Housing Element. This includes implementation of Housing Element Program 3.4 and associated increase in housing production including and beyond what was projected by the RHNA and Housing Element sites inventory. Specifically, Housing Element Program 3.4 indicates that an additional 550 units could be generated through modifications to the HIP. ATTACHMENTS Attachment A: Excerpt from 2023-2031 Adopted Housing Element Program 3.4: Housing Incentive Program (HIP) Attachment B: Physical Feasibility Analysis Report (Executive Summary with link to full report4) Attachment C: Financial Feasibility of Multifamily Housing Typologies Attachment D: Existing vs. Proposed HIP Eligible Locations Map Attachment E: State Density Bonus Law Handout 4 Full report: https://www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development-services/long- range-planning/kma-housing-incentive-program-report_complete.pdf Item 2 Staff Report     Packet Pg. 26     Item No. 2. Page 13 of 13 Report Author & Contact Information ARB5 Liaison & Contact Information Jean Eisberg, Consulting Planner Jodie Gerhardt, AICP, Planning Manager (415) 516-4479 (650) 329-2575 Jean@Lexingtonplanning.com jodie.gerhardt@cityofpaloalto.org 5 Emails may be sent directly to the ARB using the following address: arb@cityofpaloalto.org Item 2 Staff Report     Packet Pg. 27     5-16 PROGRAM 3.4: HOUSING INCENTIVE PROGRAM (HIP) The HIP was enacted in 2019 as an alternative to the State Density Bonus law and provides development incentives including no housing density restrictions, increased floor area ratios and increased lot coverage. This program seeks to expand the suite of development incentives and extends the program to additional zoning districts that are not identified in the Site Inventory. Responsible Agency: Planning and Development Services Funding Sources(s): General Fund Implementing Objectives: A.HIP qualifying projects that also comply with City approved objective standards shall be administratively reviewed with one courtesy meeting before the Architectural Review Board. Time Frame: Revise review process instructions by December 2024. Excerpt from Adopted Palo Alto Housing Element 2023-2032, certified August 20, 2024 Item 2 Attachment A: Program 3.4_Housing Element 07- 17-24 Excerpt     Packet Pg. 28     5-17 Quantified Objective: Monitor projects for compliance with desired review schedule, track application processing timelines and number of applications appealed to Council; use data to inform future modifications to the HIP program. B.Amend the local Housing Incentive Program to include specific expanded development standards, as an alternative to state density bonus provisions. Reduce barriers by removing Planning Director discretion to define applicable standards in each instance. C.Allow for sites subject to the City’s retail preservation ordinance – except in the ground floor (GF) and retail (R) combining districts and strategic locations generally depicted in the draft South El Camino Real Design Guidelines – to have a reduction in the amount of retail replacement floor area needed for redevelopment and waive the retail preservation requirement for identified housing opportunity sites. D.Extend the local Housing Incentive Program to the multi-family residential districts (RM-20, RM-30, and R-40).as well as the ROLM and GM district focus area The Housing Incentive Program development standards shall be amended to increase height and floor area allowances for housing projects; reduce parking requirements to match or improve upon state density bonus, and adjustment to other development standards to enable greater housing production. Time Frame: Complete Municipal Code amendments by December 31, 2024. Quantified Objective: Amend the municipal code and comprehensive plan to codify implementing objective with the goal of encouraging the development of approximately 550 units over the planning period. E.Expand the geographic boundaries of the El Camino Real Focus Area (adopted in 2023) to incentivize housing production at appropriate locations. Increase building height and floor area ratios and apply other objective standards, such as transitional height restrictions, to address single family zoning district adjacencies. The proposed standards will be an alternative to the state density bonus. Time Frame: Complete municipal code amendments by June 30, 2025. Quantified Objective: Amend municipal code with the goal of encouraging development of approximately 500 units over the planning period. Primary Associated Goals and Policies: Goal: 2, 3, 4 Policies: 2.2, 3.1, 3.2, 4.2, 4.4 Item 2 Attachment A: Program 3.4_Housing Element 07- 17-24 Excerpt     Packet Pg. 29     Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element Physical Feasibility Analysis Report Revision Date: May 3, 2024July 10, 2024 Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 30     Physical Feasibility Analysis Report 1 Overview This report helps implement Program 3.4 of the Housing Element, which requires that the City amend the Housing Incentive Program based on findings of a feasibility analysis. This report analyzes the physical feasibility of current zoning standards to achieve different housing types (e.g., townhomes, apartments). Architects prepared prototypical site and unit plans based on the City’s development standards, including building height, density, setbacks, open space, and parking requirements. Then, the architects adjusted various zoning levers, modifying zoning standards to increase unit yield and further support housing production and affordability. This analysis is accompanied by Keyser Marston Associates’ (KMA) financial feasibility analysis to determine whether the prototypes resulting from existing and modified zoning standards are financially feasible. Purpose & Findings 50’-0” 14’-0” 25’-0” 36’-0” 40’-0” 50’-0” 40’-0”Height Limit Buffer Modified CD-C ZoningExisting CD-C Zoning 60’-0” 60’-0” Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 31     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element2 Mixed-Use Zones RM Zones Zoning Designation CD-C CN CC(2) RM-20 RM-30 RM40 ROLM (RM-30) Site 635 High Street 3700 El Camino Real 310 California Avenue 680 University Avenue 355 College Avenue Typical Interior Lot 1035 E Meadow Circle Lot Size 50’x102’150’x106’90’x125’100’x100’50’x132’50’x100’300’x145’ Square feet 5,125 15,761 11,250 10,000 6,626 5,000 43,560 Existing Retail No Yes Yes No No No No Test Sites RM-20 CD-C RM-30 ROLM CN RM-40 CC(2) Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 32     Physical Feasibility Analysis Report 3 Key Findings Existing zoning standards generally support townhome development with surface or tuck-under parking. This is largely due to low lot coverage allowances and densities/FARs, deep setbacks, and relatively high parking and landscaping requirements. Townhomes are a fine prototype, but limited in their ability to produce affordable and market rate housing. Existing standards generally do not support apartments and condominiums in “stacked flats” configuration or mixed-use development with ground-floor retail. To achieve these higher densities, opportunities for more affordable housing, and more financially feasible development, the modified zoning standards explore adjustments to several zoning levers: • Reducing setbacks, especially on the street side• Increasing lot coverage, FAR, and density• Increasing height limits and adjusting daylight plane requirements • Reducing landscaping coverage and allowing flexibility in the placement of common open space• Reducing parking requirements, consistent with State law allowances • Reducing ground-floor retail requirements outside of neighborhood commercial centers Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 33     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element4 Retail Preservation Requirements Revisions • Revise use requirements for retail• Do not require one-for-one replacement: allow minimum FAR standard for retail • Revise Retail preservation applicability • Only require retail at key nodes. Allow 100% residential in between nodes on commercial corridors, and Housing Element opportunity sites • Clarify that Retail Preservation replacement is allowed on two floors Objectives • Support affordable and market rate housing production goals, as specified in the Housing Element• Allow for apartment housing formats• Accommodate stacked flats and mixed-use development • Enable financial feasibility • Retain Palo Alto design values 50’-0” 14’-0” 25’-0” 36’-0” 40’-0”60’-0”Redefine maximum height of buildings to measure to top of structure, rather than top of parapet to allow a more reasonable fit within the height limit. Decrease parking requirements, consistent with State law allowances: The space taken up by parking compared to housing can be close to 1:1. ✓X 2-Bedroom Unit 828 sf 2 parking spaces required 558 sf+ guest parking (1 per project, plus 10% of total number of units) = 837 sf12’-0’ Circulation(aisle width) 19’ x 9’ Parking Space Guest Parking 23’ x 36’ Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 34     Physical Feasibility Analysis Report 5 Ground Floor Upper Level Development Standard Revisions • Increase or eliminate maximum residential densities, which do not directly affect building massing • Increase FAR and building height • Revise the Daylight Plane to allow for at least two stories of development• Revise height buffer in CD-C district: 150 feet is too far from “adjacent” residential to create a meaningful transition • Revise Height Limit Buffer to apply only when the entire site is within the buffer• Revise Height Limit Buffer to apply to area within 10 feet of a visible property line (thus defining a setback) Lot Standard Revisions • Decrease landscape/open space coverage. The Ground Floor is a contested space. The more Landscape/Open Space is required, the smaller the podium. It’s a big trade-off.• Allow landscape/open space to be counted above the ground floor on small sites (e.g, at the podium level)• Reduce setbacks, especially on the street side which tend to be deep even though this does not affect neighbors. • Allow zero setbacks or mixed-use citywide or on commercial streets like California Avenue, University Avenue, and El Camino Real• Reduce rear setback near roads. Count the alleyways/lanes/service roads in lieu of rear setback Revise the daylight plane to allow at least two stories at the edges of sites. Allow the landscape/open space requirement to be met on upper levels to free up contested space at the ground level. Ground Floor Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 35     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element6 CD-C District Alle y 50’ - 0 ” 102’-6 ” Alle y Prim a r y S t r e e t Modified CD-C Zoning 15 Apartments Existing CD-C Zoning 4 Townhomes The Height Limit Buffer and requirement for open space at the ground floor limit the amount of housing potential on the site. Housing capacity almost quadruples when allowing 10 more feet of height, eliminating the height buffer, and open space requirements to met on top of podiums. Prim a r y S t r e e t Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 36     Physical Feasibility Analysis Report 7 Existing CD-C Zoning Modified CD-C Zoning Setback: Front N/A N/A Setback: Interior Side N/A N/A Setback: Rear 10 feet for residential portion 5 feet for residential portion Setback: Street Side Yard N/A N/A Build-to-Lines: Frontage N/A N/A Build-to-Lines: Side Street N/A N/A Height Limit Buffer Yes (40 feet)No Height Limit 50 feet 60 feet Daylight Plane N/A N/A Maximum Site Coverage N/A N/A Minimum Landscape/Open Space Coverage 20% on ground 20% on ground and/or upper level Parking: Studio/1BR 1 1 Parking: 2+ BR 2 1.5 Maximum FAR Overall 2.0 4.0 Maximum Residential FAR 1.0 4.0 Maximum Commercial FAR 1.0 0.0 Parking Required 2 per unit8 spaces 1.5 per unit17.5 spaces Total Number of Units 4 units 15 units Average Unit Size 1,575 sf 1,003 sf Density 34 du/ac 125 du/ac FAR Overall 1.23 FAR 4.16 FAR Parking Provided (spaces)8 spaces 18 spaces Parking Type Covered, tandem Podium, tandem 50’-0” 14’-0” 25’-0” 36’-0” 40’-0” 60’-0” 50’-0” 40’-0”Height Limit Buffer Modified CD-C ZoningExisting CD-C Zoning PR O T O T Y P E R E S U L T S STA N D A R D S Modified standards indicated in red. 60’-0” Height Limit Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 37     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element8 Retail l/wk l/wk l/wk l/wktrash Retail Open S p a c e Ramp 150’-0 ” 106 ’ CN District Existing CN Zoning 12 Apartments A height limit buffer, maximum height limit, and daylight plane apply to this site. With a 35% minimum landscape/open space coverage, there is not much left space left for mixed use development. Underground parking is therefore required. Modified CN Zoning 35 Apartments More housing is possible by raising the height limit, allowing modest changes to the setbacks, and allowing the landscape/open space to be located on upper levels. Parking is accommodated at grade using mechanical lifts. Prima r y S t r e e t Prima r y S t r e e t Alley Alley Side S t r e e t Ramp Side S t r e e t Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 38     Physical Feasibility Analysis Report 9 Existing CN Zoning Modified CN Zoning Setback: Front 0-10’ for sidewalks 0-10’ for sidewalks Setback: Interior Side 10 feet 5 feet Setback: Rear 10’ for residential portion 5’ for residential portion Setback: Street Side Yard 5 feet 5 feet Build-to-Lines: Frontage 50%50% Build-to-Lines: Side Street 33%33% Height Limit Buffer Yes (35 feet)Daylight plane in-lieu of buffer Height 40 feet 50 feet Daylight Plane 16 feet height, 60 degrees 16 feet height, 60 degrees Maximum Site Coverage 50%100% Minimum Landscape/Open Space Coverage 35% on ground 35% on ground and/or upper level Parking: Studio/1BR 1 1 Parking: 2+ BR 2 1.5 Maximum FAR Overall 1.5 FAR 3.5 FAR Maximum Residential FAR 1.5 FAR 3.5 FAR Maximum Commercial FAR 0.4 FAR 0.4 FAR Minimum Mixed-Use Ground Floor Commercial FAR 0.15 FAR 0 FAR Parking Required 21 spaces 42 spaces Total Number of Units 12 units 35 units Average Unit Size 735 sf 742 sf Retail Preservation 2900 sf 0 sf Density 33 du/ac 97 du/ac FAR Overall 1.04 FAR 2.19 FAR Parking Provided 21 total spaces 46 spaces Parking Type Underground, tandem Podium, mechanical 16’-0”6020’-0” 30’-0” 50’-0” 40’-0” Modified CN Zoning 16’-0”60 35’-0” 20’-0” 30’-0” 35’-0” Existing CN Zoning 35’-0” Height Limit Buffer 16’-0”16’-0”60° 40’ Height Limit Day l i g h t P l a n e Day l i g h t P l a n e PR O T O T Y P E R E S U L T S STA N D A R D S Modified standards indicated in red. 50’-0” Height Limit Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 39     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element10 CC(2) District Existing CC(2) Zoning 3 Townhomes Building height, setbacks, lot coverage, parking requirements, and FAR maximums apply to this site. Two levels of underground parking is required to meet minimum parking standards, which is costly. Existing residential FAR limits and setbacks limit the housing to 3-stories and to only 3 units. Modified CC(2) Zoning 34 Apartments More housing is possible by raising the height limit, eliminating setbacks, allowing the landscape/open space to be located on upper levels and increasing the FAR. Retail parking is not provided onsite but in district commercial parking structures. Residential parking is provided onsite in mechanical lifts. Prim a r y S t r e e t Prim a r y S t r e e t Side S t r e e t Side S t r e e t Alle y 125’-0 ” 90’ - 0 ” Alle y Ramp Ret a i l Open S p a c e Ret a i l Open S p a c e Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 40     Physical Feasibility Analysis Report 11 Existing CC(2) Zoning Modified CC(2) Zoning Setback: Front 0-10’ for sidewalks 0 feet Setback: Interior Side 10 feet 0 feet Setback: Rear 10’ for residential portion 0 feet Setback: Street Side Yard 5 feet 0 feet Build-to-Lines: Frontage 50%50% Build-to-Lines: Side Street 33%33% Height Limit Buffer Not Applicable Not Applicable Height 37 feet 60 feet Daylight Plane Not Applicable Not Applicable Maximum Site Coverage 100%100% Minimum Landscape/Open Space Coverage 20% on ground (23% shown) 20% (on any level) Parking: Studio/1BR 1 0.5 Parking: 2+ BR 2 1.0 Parking: Retail 1 per 250 sfFirst 1,500sf exempt 0offsite with district parking Maximum FAR Overall 2.0 FAR 3.5 FAR Maximum Residential FAR 1.5 FAR 3.5 FAR Maximum Commercial FAR 0.4 FAR 0.4 FAR Minimum Mixed-Use Ground Floor Commercial FAR 0.25 FAR 0.25 FAR Total Number of Units 3 units (tuck under parking)34 units Average Unit Size 1,800 sf 902 sf Retail Preservation 10,700 2,812 sf Density 11 du/ac 97 du/ac FAR Overall 1.43 FAR 3.56 FAR Residential FAR 0.47 FAR 3.75 FAR Commercial FAR 0.96 FAR 0.25 FAR Parking Provided 38 commercial spaces 27 residential spaces Parking Type 2 levels underground Podium, mechanical PR O T O T Y P E R E S U L T S STA N D A R D S Modified standards indicated in red. 37’ Height Limit Existing CC(2) Zoning Modified CC(2) Zoning 60’-0” Height Limit Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 41     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element12 Prima r y S t r e e t Side S t r e e t Prima r y S t r e e t Side S t r e e t RM-20 District Existing RM-20 Zoning 4 Apartments The daylight plane, height limit, setbacks, and maximum site coverage limit unit yield on this site. Modified RM-20 Zoning 7 Apartments Adjustements to zoning allow the development envelope to be more flexible and doubles the amount of housing possible on the site. Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 42     Physical Feasibility Analysis Report 13 Existing RM-20 Zoning Modified RM-20 Zoning Setback: Front 20 feet 10 feet Setback: Interior Side 10, 6 feet 5 feet Setback: Rear 10 feet 5 feet Setback: Street Side Yard 16 feet 5 feet Build-to-Lines: Frontage N/A N/A Build-to-Lines: Side Street N/A N/A Height Limit Buffer N/A N/A Height 30 feet 40 feet Daylight Plane 10 feet, 45 degrees 2 story residential edges or 16 feet, 45 degrees Maximum Site Coverage 35%65% Minimum Landscape/Open Space Coverage 35% on ground 35% on ground and/or upper level Parking: Studio/1BR 1 1 Parking: 2+ BR 2 1.5 Maximum Density 20 du/ac No maximum Maximum FAR Overall 1.0 FAR 2.0 FAR Parking Required 8 spaces 10.5 spaces Total Number of Units 4 units 7 units Average Unit Size 2,500 sf 2,341 sf Density 18 du/ac 32 du/ac FAR Overall 1.0 FAR 1.21 FAR Parking Provided (spaces)8 spaces 11 spaces Parking Type Tuck under Tuck under 10’-0”10’-0” 30’-0” Height Limit 30’-0” Height Limit Dayl i g h t p l a n e Dayli g h t p l a n e 45degrees45 degrees Modified RM-20 ZoningExisting RM-20 Zoning 30’-0” Height Limit 10’-0” Dayl i g h t P l a n e 16’-0” 45°45° Dayl i g h t P l a n e 40’-0” Height Limit PR O T O T Y P E R E S U L T S STA N D A R D S Modified standards indicated in red. Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 43     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element14 RM-30 District Existing RM-30 Zoning 4 Apartments The daylight plane and maximum site coverage limits development to the extent that the prototype does not reach the limits of the building envelope. Modified RM-30 Zoning 7 Apartments Modification of the daylight plane and the maximum site coverage allows for development to fill the building envelope while still maintaining the daylight plane. Side S t r e e t Side S t r e e t Prim a r y S t r e e t Prim a r y S t r e e t Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 44     Physical Feasibility Analysis Report 15 16’-0”45 40’-0” Height Limit Dayli g h t p l a n e 10’-0”45 35’-0” Height Limit degreesDayli g h t p l a n e Existing RM-30 Zoning Modified RM-30 Zoning Setback: Front 20 feet 10 feet Setback: Interior Side 10, 6 feet 5 feet Setback: Rear 10 feet 5 feet Setback: Street Side Yard 16 feet 5 feet Build-to-Lines: Frontage N/A N/A Build-to-Lines: Side Street N/A N/A Height Limit Buffer N/A N/A Height 35 feet 40 feet Daylight Plane 10 feet, 45 degrees 2 story residential edges or 16 feet, 45 degrees Maximum Site Coverage 40%65% Minimum Landscape/Open Space Coverage 30%30% Parking: Studio/1BR 1 1 Parking: 2+ BR 2 1.5 Maximum Density 30 du/ac No maximum Maximum FAR Overall 1.0 FAR 2.5 FAR Parking Required 8 spaces 10.5 spaces Total Number of Units 4 7 Average Unit Size 1,650 sf 1,457 sf Density 27 du/ac 47 du/ac FAR Overall 1.0 FAR 1.62 FAR Parking Provided 8 spaces 11 spaces Parking Type Tuck under, driveway Tuck under, tandem Modified RM-30 ZoningExisting RM-30 Zoning 35’-0” 10’-0”16’-0” 45°45° Daylight Plane Daylight Plane PR O T O T Y P E R E S U L T S STA N D A R D S Modified standards indicated in red. 40’-0” Height Limit Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 45     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element16 RM-40 District Existing RM-40 Zoning 4 Townhomes The setbacks and daylight plane on this small (and typical) site limit the shape of the building reducing the amount of housing possible on the site. The daylight plane rules prevent a development from meeting the district height limit. This site test assumes no parking. Stre e t F r o n t a g e Stre e t F r o n t a g e 50’ - 0 ” 50’ - 0 ” 100’-0 ” 100’-0 ” Existing RM-40 Zoning - No Parking 8 Apartments To better understand the maximum development possible within this limited building envelopment, the site test was run again without parking requirements. Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 46     Physical Feasibility Analysis Report 17 Modified RM-40 Zoning - 10,000sf site 21 Apartments The width of two typical lots allows the layout of podium parking to be more efficient. Parking was also modified to 1 space per unit minimum. The number of units is still limited by the modified parking required, resulting in three stories over podium parking. Stre e t F r o n t a g e Modified RM-40 Zoning 16 Apartments Revising setbacks to be more uniform with other zoning districts and removing the daylight plane allows a regularly shaped building and more capacity of housing. This allows for four stories of housing on top of the podium if only the building envelope was considered, excluding limits on FAR, density, or parking. Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 47     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element18 Existing RM-40 Zoning Existing RM-40 Zoning Setback: Front 20 feet 20 feet Setback: Interior Side 10, 6 feet 10, 6 feet Setback: Rear 10 feet 10 feet Setback: Street Side Yard 16 feet 16 feet Build-to-Lines: Frontage N/A N/A Build-to-Lines: Side Street N/A N/A Height Limit Buffer N/A N/A Height 40 feet 40 feet Daylight Plane 10 feet, 45 degrees 10 feet, 45 degrees Maximum Site Coverage 45%45% Minimum Landscape/Open Space Coverage 30%30% Parking: Studio/1BR 1 0 Parking: 2+ BR 2 0 Maximum Density 40 du/ac No maximum Maximum FAR Overall 1.0 FAR 1.0 FAR Parking Required 7 spaces 0 spaces Total Number of Units 4 units 8 units Average Unit Size 1,009 sf 644 sf Density 34 du/ac 67 du/ac FAR Overall 0.88 FAR 1.0 FAR Parking Provided 7 spaces 0 spaces Parking Type Podium N/A 50’-0” Height Limit 35’-0” Height @ intersection of the daylight planes 10’-0” 45 de g r e e d a y l i g h t p l a n e 50’-0” Height Limit 35’-0” Height @ intersection of the daylight planes 10’-0” 45 de g r e e d a y l i g h t p l a n e Modified RM-40 ZoningExisting RM-40 Zoning 40’-0” Height Limit 40’-0” Height Limit 35’-0” Intersection of daylight planes35’-0” Intersection of daylight planes 10’-0” 30’-0”30’-0” 10’-0” 45°45° PR O T O T Y P E R E S U L T S STA N D A R D S Modified standards indicated in red. Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 48     Physical Feasibility Analysis Report 19 Modified RM-40 Zoning Modified RM-40 Zoning Setback: Front 10 feet 10 feet Setback: Interior Side 5 feet 5 feet Setback: Rear 5 feet 5 feet Setback: Street Side Yard 5 feet 5 feet Build-to-Lines: Frontage N/A N/A Build-to-Lines: Side Street N/A N/A Height Limit Buffer N/A N/A Height 50 feet 50 feet Daylight Plane N/A N/A Maximum Site Coverage 70%70% Minimum Landscape/Open Space Coverage 20%20% Parking: Studio/1BR N/A 1 Parking: 2+ BR N/A 1 Maximum Density No maximum No maximum Maximum FAR Overall N/A 2.5 FAR Parking Required N/A 21 spaces Total Number of Units 16 units 21 units Average Unit Size 644 sf 734 sf Density 130 du/ac 91 du/ac FAR Overall 2.8 FAR 2.3 FAR Parking Provided 6 spaces 21 spaces Parking Type Podium Podium, mechanical 45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0” 45’-0”45’-0” 45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0” 45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0” 45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0” Modified RM-40 Zoning (10,000 sf lot)Modified RM-40 Zoning 50’-0” Height Limit50’-0” Height Limit 40’-0” 50’-0” PR O T O T Y P E R E S U L T S STA N D A R D S Modified standards indicated in red. Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 49     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element20 ROLM District Existing ROLM Zoning 16 Apartments The existing height limit restricts the housing typology to townhomes. The potential is much higher at this site. The 40% maximum site coverage is also a constraint on housing potential for stacked flats. Modified ROLM Zoning 130 Apartments More housing is possible If the height limit and maximum site coverage is revised to allow for apartments. Allowing the landscape/open space requirement to be met on upper levels also contributes to efficient use of the site. Prim a r y S t r e e t Prim a r y S t r e e t 304’ 293’ 145 ’ Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 50     Physical Feasibility Analysis Report 21 Existing ROLM Zoning Modified ROLM Zoning Setback: Front 20 feet 10 feet Setback: Interior Side 10, 6 feet 5 feet Setback: Rear 10 feet 5 feet Setback: Street Side Yard 16 feet 5 feet Build-to-Lines: Frontage N/A N/A Build-to-Lines: Side Street N/A N/A Height Limit Buffer N/A N/A Height 35 feet 60 feet Daylight Plane N/A N/A Maximum Site Coverage 40%70% Minimum Landscape/Open Space Coverage 30% on ground 20% on ground and/or upper level Parking: Studio/1BR 1 1 Parking: 2+ BR 2 1 Maximum FAR Overall 0.6 FAR 2.5 FAR Parking Required 32 spaces 130 spaces Total Number of Units 16 units 130 units Average Unit Size 1,633 sf 760 sf Density 16 du/ac 130 du/ac FAR Overall 0.6 FAR 2.7 FAR Parking Provided 32 spaces 139 spaces Parking Type Surface and tuck under Podium, Mechanical 58’-0” 60’-0” Height Limit 58’-0”58’-0” 65’-0”65’-0” 35’-0”35’-0” Existing ROLM Zoning Modified ROLM Zoning 35’-0” Height Limit PR O T O T Y P E R E S U L T S STA N D A R D S Modified standards indicated in red. 30’-0” Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 51     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element22 Recommendations Potential Changes to Enable Feasibility Already Planned/Underway • Increase residential densities (on specific sites in Housing Element Sites Inventory) • Decrease parking requirements to match standards permitted under State law • AB2097 eliminates parking within ½ mile of Caltrain • State Density Bonus law allows reduced parking Additional Changes to Achieve Financial Feasibility and Stacked Flats/Mixed Use • Increase FAR and density • Increase building height • Reduce setbacks (esp. front/street side) • Increase maximum site coverage • Decrease landscape/open space coverage and allow more flexibility in open space • Revise retail preservation applicability Development standards work in unison. Other changes will be necessary to complement changes in density and parking. Other Changes to Consider to Enable Feasibility • Simplify and reduce requirements for open space • Modify the daylight plane for small lots or lots that have 100 foot depths or bigger • Reduce parking requirements for lots smaller than 10,000sf, “small lot program” • Modify height buffer (i.e., within 150 ft. of a residential use) • Allow height definition to exclude parapet height and rooftop mechanical • Exclude mechanical rooms from FAR so that building systems are not undersized Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 52     Physical Feasibility Analysis Report 23 Mixed-Use Zones RM Zones Zoning Designation CD-C CN CC(2) RM-20 RM-30 RM40 ROLM (RM-30) Residential Units 4 12 3 4 4 4 16 Parking Spaces 8 21 38 8 8 7 32 Residential Density (du/ac)34 33 11 18 27 34 16 FAR 1.23 1.04 1.43 1.0 1.0 0.88 0.6 Building Height (feet)40 30 37 30 30 30 30 Typology Town Homes Town Homes Town Homes Town Homes Town Homes Town Homes Town Homes Financially Feasible?X X X X X X X Current Zoning Standards Yield Mixed-Use Zones RM Zones Zoning Designation CD-C CN CC(2) RM-20 RM-30 RM40 ROLM (RM-30) Residential Units 15 35 34 7 7 16 130 Parking Spaces 18 46 27 11 11 6 139 Residential Density (du/ac)125 97 130 32 47 130 130 FAR 4.16 2.19 3.56 1.21 1.62 2.8 2.7 Building Height (feet)60 50 60 40 40 50 58 Typology Apartments Apartments Apartments Town Homes Town Homes Apartments Apartments Financially Feasible?✓✓✓✓✓✓✓ Modified Zoning Standards Yield Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 53     City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element24 Mixed-Use Zones RM Zones Zoning Designation CD-C CN CC(2) RM-20 RM-30 RM40 ROLM (RM-30) Development Intensity FAR 2.0 4.0 1.5 3.5 2.0 3.5 1.0 2.0 1.0 2.5 1.0 3.0 0.6 3.5 Res FAR 1.0 4.0 1.5 3.5 2.0 3.5 2.25 2.25 2.5 2.25 Minimum Mixed Use Ground Floor Commercial FAR N/A 0.15 0.0 0.25 0.0 N/A N/A N/A N/A Residential Density Max (du/ac)No max No max No max 20 No Max 30 No Max 40 No Max 30 No Max Residential Density Min (du/ac)N/A N/A N/A 11 16 21 16 Maximum Building Heights Height Limit Buffer Yes (50') Yes (40')No No No No No Height (feet)40 60 35 50 37 60 30 40 35 40 40 50 35 60 Daylight Plane (* for side and rear abutting R, lots less than 70 feet) N/A 16 feet height, 60 degrees (in lieu of buffer) N/A 10 16 feet, 45 degrees 10 16 feet, 45 degrees 10 feet, 45 degrees N/A N/A Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 54     Physical Feasibility Analysis Report 25 Setbacks Setback: Front N/A 0-10' for sidewalks 0-10' for sidewalks 0 20 10 20 10 20 10 20 10 Setback: Interior Side N/A 10 5 10 0 10, 6 5 10, 6 5 10, 6 5 10, 6 5 Setback: Rear 10' 5 for residential portion 10' 5 for residential portion 10' for residential portion 0 10 5 10 5 10 5 10 5 Setback: Street Side Yard N/A 5 5 0 16 5 16 5 16 5 16 5 Mixed-Use Zones RM Zones Zoning Designation CD-C CN CC(2) RM-20 RM-30 RM40 ROLM (RM-30) Max Site Coverage N/A 100%100%35% 65%40% 65%45% 70%40% 70% Landscape/Open Space Coverage 20%35%20%35%30%20%30% Landscape/Open Space Location Ground floor only Ground floor and upper stories Parking Requirements Parking: Studio/1 BR 1 1 1 0.5 1 1 1 1 Parking: 2+ BR 2 1.5 2 1.5 2 1.0 2 1.5 2 1.5 2 1 2 1 Item 2 Attachment B: Physical Feasibility Analysis Report Executive Summary     Packet Pg. 55     HOUSING INCENTIVE PROGRAM STUDY: TESTING THE FINANCIAL FEASIBILITY OF MULTI-FAMILY HOUSING TYPOLOGIES Prepared for: City of Palo Alto Prepared by: Keyser Marston Associates, Inc. June 13, 2024 Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 56     Housing Incentive Program Study Page i Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024 TABLE OF CONTENTS I. EXECUTIVE SUMMARY ............................................................................................................... 1 A. FINANCIAL EVALUATION METHODOLOGY .................................................................................................. 1 B. BASE ZONING PROTOTYPE ANALYSIS ........................................................................................................ 1 C. PROPOSED ZONING PROTYPE ANALYSIS .................................................................................................... 4 D. ADDITIONAL POLICY CONSIDERATIONS ..................................................................................................... 6 II. FINANCIAL EVALUATION METHODOLOGY .................................................................................. 8 A. ANALYSIS OF BASE ZONING PROTOTYPES .................................................................................................. 8 B. ANALYSIS OF PROPOSED ZONING PROTOTYPES ........................................................................................... 8 C. FINANCIAL EVALUATION ORGANIZATION ................................................................................................... 9 D. PRO FORMA ASSUMPTIONS ................................................................................................................. 10 III. ANALYSIS OF BASE ZONING PROTOTYPES ................................................................................ 12 A. SITE A: CD-C ZONE.......................................................................................................................... 12 B. SITE B: CN ZONE .............................................................................................................................. 13 C. SITE C: CC(2) ZONE .......................................................................................................................... 16 D. SITE D: RM-20 ZONE ........................................................................................................................ 18 E. SITE E: RM-30 ZONE ........................................................................................................................ 20 F. SITE F: RM-40 ZONE ......................................................................................................................... 21 G. CONCLUSIONS ................................................................................................................................... 23 IV. ANALYSIS OF PROPOSED ZONING PROTOTYPES ....................................................................... 25 A. SITE A: CD-C ZONE ........................................................................................................................... 25 B. SITE B: CN ZONE .............................................................................................................................. 27 C. SITE C: CC(2) ZONE .......................................................................................................................... 29 D. SITE D: RM-20 ZONE ........................................................................................................................ 32 E. SITE E: RM-30 ZONE ........................................................................................................................ 34 F. SITE F: RM-40 ZONE ......................................................................................................................... 35 G. CONCLUSIONS ................................................................................................................................... 42 V. POLICY CONSIDERATIONS ........................................................................................................ 44 A. APPLICABILITY OF ZONING MODIFICATIONS TO SMALL SITES ....................................................................... 44 B. APPLICABILITY OF ZONING MODIFICATIONS TO LARGER SITES ...................................................................... 44 C. CURRENT CITY PERMITS AND FEES ......................................................................................................... 45 D. CONCLUSIONS ................................................................................................................................... 45 Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 57     Housing Incentive Program Study Page ii Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024 ATTACHMENTS Attachment 1: Base Zoning Prototype Analyses Appendix A: Site A – CD-C Zone Appendix B: Site B – CN Zone Appendix C: Site C – CC(2) Zone Appendix D: Site D – RM-20 Zone Appendix E: Site E – RM-30 Zone Appendix F: Site F – RM-40 Zone Attachment 2: Proposed Zoning Prototype Analyses Appendix A: Site A – CD-C Zone Appendix B: Site B – CN Zone Appendix C: Site C – CC(2) Zone Appendix D: Site D – RM-20 Zone Appendix E: Site E – RM-30 Zone Appendix F: Site F – RM-40 Zone Attachment 3: Background Information Appendix A: Market Surveys Exhibit I Resale Home Survey Exhibit II New Home Sales Exhibit III Apartment Rent Survey Appendix B: Affordable Sales Price Calculations Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 58     Housing Incentive Program Study Page 1 Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024 I. EXECUTIVE SUMMARY The City of Palo Alto (City) is considering modifications to the Zoning Ordinance to create incentives for multi-family and affordable housing development. The intent of the revised zoning standards is to enable multi-family housing typologies that are both physically feasible and financially feasible. To that end, the City engaged Keyser Marston Associates, Inc. (KMA) to evaluate the financial characteristics associated with prototypical residential projects. The intent of this financial analysis is to ensure that the proposed zoning modifications allow for financially feasible multi-family residential projects. The following report discusses the financial analyses prepared by KMA. A. Financial Evaluation Methodology KMA utilized the following methodology to evaluate the financial feasibility of each prototype: 1. KMA prepared pro forma analyses based on the scopes of development that were provided by Urban Field Studio. 2. The pro forma analyses were used to compare the value supported by the prototype project to the project’s development cost plus a standard developer profit. 3. If the project’s estimated value was less than the estimated costs plus developer profit, the project was deemed not likely to be built. B. Base Zoning Prototype Analysis As the first step in the process, Urban Field Studio and Lexington Planning created prototype development scenarios for six sites that comport with the City’s current development standards. For the purposes of this KMA analysis, “current” and “base” development standards refer to the base zoning standards applicable citywide, but do not take into account increased density standards available to Housing Element opportunity sites (adopted December 2023) or those available per State of California (State) Density Bonus Law. As described in Attachment 1, KMA evaluated the financial feasibility of each “Base Zoning Prototype.” Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 59     Housing Incentive Program Study Page 2 Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024 As can be seen in Attachment 1, each of the Base Zoning Prototypes was found not likely to be developed under the City’s current zoning standards. The results of the KMA analyses of the Base Zoning Prototypes are presented in the table on the following page. Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 60     SITE C SITE F CC(2) Zone RM-40 Zone I.Site Area (Sf)11,250 5,000 II.Development Scope A.Unit Type Townhome Apartment Townhome Townhome Townhome Townhome B.Unit Mix Studio Units 0 3 0 0 0 1 One-Bedroom Units 0 1 0 0 0 0 Two-Bedroom Units 0 12 3 0 0 3 Three-Bedroom Units 4 0 0 2 4 0 Four-Bedroom Units 0 0 0 2 0 0 Total Units 4 16 3 4 4 4 B.Unit Sizes Studio Units 0 360 0 0 0 360 Live/Work One-Bedroom Units 0 0 0 0 0 0 One-Bedroom Units 0 528 0 0 0 0 Two-Bedroom Units 0 828 1,810 0 0 1,120 Three-Bedroom Units 1,575 0 0 1,891 1,429 0 Four-Bedroom Units 0 0 0 2,791 0 0 Net Living Area 6,300 11,544 5,430 9,364 5,716 3,720 Average SF/Unit 1,575 722 1,810 2,341 1,429 930 Retail GBA 0 2,900 10,784 0 0 Gross Building Area (Sf)6,300 19,701 18,230 9,364 5,716 3,720 Floor Area Ratio (FAR)1.23 1.22 1.53 0.94 0.86 0.74 Density (Units/Acre)34 44 12 17 26 35 III.Estimated Development Cost A.Land Value $1,614,000 $4,965,000 $3,544,000 $3,150,000 $2,087,000 $1,575,000 B.Direct Costs $2,387,000 $8,902,000 $9,571,000 $3,690,000 $2,284,000 $1,528,000 Per Sf of Net Saleable Area $379 $771 $1,763 $394 $400 $411 C.Public Permits & Fees $384,000 $1,392,000 $387,000 $412,000 $380,000 $364,000 Per Unit $96,000 $87,000 $129,000 $103,000 $95,000 $91,000 D.Indirect + Financing Costs $1,600,000 $3,515,000 $3,933,000 $2,505,000 $1,603,000 $1,146,000 As a % of Direct Costs 67%39%41%68%70%75% Total Development Cost $5,985,000 $18,774,000 $17,435,000 $9,757,000 $6,354,000 $4,613,000 Per Square Foot of GBA $950 $953 $956 $1,042 $1,112 $1,240 IV.Projected Revenues A.Residential Revenue $7,005,000 $781,000 $6,101,000 $9,575,000 $6,356,000 $4,164,000 Per Market Rate Unit $1,751,300 $4,300 $2,033,700 $2,393,800 $1,589,000 $1,041,000 Per Affordable Unit $0 $0 $0 $0 $0 $0 B.Net Sales Revenue / Value Residential Component $6,620,000 $5,765,000 $9,048,000 $6,006,000 $3,935,000 Retail Component 10,283,000 Total Net Sales Revenue / Value $6,620,000 $15,151,000 $16,048,000 $9,048,000 $6,006,000 $3,935,000 V. $794,000 $1,515,000 $1,720,000 $1,086,000 $721,000 $472,000 VI.Net Surplus/(Cost) A.Net Sales Revenue / Value $6,620,000 $15,151,000 $16,048,000 $9,048,000 $6,006,000 $3,935,000 B.Revenue Offsets Total Development Cost $5,985,000 $18,774,000 $17,435,000 $9,757,000 $6,354,000 $4,613,000 Threshold Developer Profit 794,000 1,515,000 1,720,000 1,086,000 721,000 472,000 Total Revenue Offsets $6,779,000 $20,289,000 $19,155,000 $10,843,000 $7,075,000 $5,085,000 VII.Net Surplus/(Cost)($159,000)($5,138,000)($3,107,000)($1,795,000)($1,069,000)($1,150,000) $15,151,000 Threshold Developer Profit @ 12% Net Residential Sales Revenue or 10% of Apt Value SUMMARY OF BASE ZONING PROTOTYPES CD-C Zone CN Zone RM-20 Zone RM-30 Zone 5,125 15,761 10,000 6,626 SITE A SITE B SITE D SITE E Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 61     Housing Incentive Program Study Page 4 Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024 C. Proposed Zoning Protype Analysis Subsequent to the analysis of the Base Zoning Prototypes, Urban Field Studio and Lexington Planning created prototype development scenarios that modified current development standards (Proposed Zoning Prototypes). The purpose of modifying current development standards was to create zoning requirements that allow for the development of multi-family projects that are both physically and financially feasible. Modifications were made to a variety of development standards such as: reduced parking ratios, increased building height, increased floor-area-ratios (FAR), reduced setbacks, modified daylight planes, reduced lot and landscape coverage and changes to ground floor retail requirements. Specifically, the modifications were intended to allow for additional units to be constructed on each of the development sites (e.g., increased FAR) and/or to reduce the costs associated with developing residential units (e.g. reduced parking requirements). These factors have a direct impact on the financial feasibility of each development prototype. The Proposed Zoning Prototypes evaluated in this analysis are the result of an iterative process between KMA, Urban Field Studio, Lexington Planning and the City. A number of potential modifications were tested for each of the sites in order to develop prototypes that were both physically and financially feasible. In particular, for the RM-40 Zone site, three scenarios for proposed modifications were evaluated in this analysis. The KMA financial analyses of the Proposed Zoning Prototypes are presented in Attachment 2. As shown, each of the Proposed Zoning Prototypes was found to be financially feasible under the proposed zoning modifications. The results of the KMA analyses of the Proposed Zoning Prototypes are presented in the table on the following page. Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 62     SITE A SITE B SITE C SITE D SITE E No Parking Limited Parking 10,000 SF Lot I.Site Area (Sf)5,125 15,761 11,250 10,000 6,626 5,000 5,000 10,000 II.Development Scope A.Unit Type Condo Apartment Apartment Townhome Townhome Apartment Apartment Apartment B.Unit Mix Studio Units 0 0 8 0 0 4 3 0 Live/Work One-Bedroom Units 0 4 0 0 0 0 0 0 One-Bedroom Units 10 11 6 0 0 4 3 2 Two-Bedroom Units 1 18 16 2 0 0 6 16 Three-Bedroom Units 4 0 4 5 7 0 0 3 Total Units 15 33 34 7 7 8 12 21 B.Unit Sizes Studio Units 0 0 514 0 0 415 450 0 Live/Work One-Bedroom Units 0 1,050 0 0 0 0 0 0 One-Bedroom Units 751 528 713 0 0 678 637 625 Two-Bedroom Units 1,240 828 1,066 1,593 0 0 740 971 Three-Bedroom Units 1,500 0 1,302 1,795 1,457 0 0 1,250 Net Living Area 14,746 24,912 30,654 12,163 10,199 4,370 7,701 20,540 Average Square Feet / Unit 983 755 902 1,738 1,457 546 642 978 Gross Building Area (Sf)20,841 33,240 42,895 12,163 10,199 5,016 10,725 26,114 Floor Area Ratio (FAR)4.07 1.94 0.94 1.22 1.54 1.00 2.15 5.22 Density (Units/Acre)127 91 132 30 46 70 105 183 III.Estimated Development Cost A.Land Value $1,614,000 $4,965,000 $3,544,000 $3,150,000 $2,087,000 $1,575,000 $1,575,000 $3,150,000 B.Direct Costs $7,724,000 $12,553,000 $15,434,000 $4,614,000 $3,763,000 $1,895,000 $3,959,000 $9,727,000 Per Square Foot $524 $504 $503 $379 $369 $434 $514 $474 C.Public Permits & Fees $1,425,000 $2,805,000 $2,958,000 $686,000 $665,000 $656,000 $1,008,000 $1,827,000 Per Unit $95,000 $85,000 $87,000 $98,000 $95,000 $82,000 $84,000 $87,000 D.Indirect + Financing Costs $3,138,000 $5,250,000 $6,007,000 $2,222,000 $1,764,000 $915,000 $1,616,000 $3,864,000 As a % of Direct Costs 41%42%39%48%47%48%41%40% Total Development Cost $13,901,000 $25,573,000 $27,943,000 $10,672,000 $8,279,000 $5,041,000 $8,158,000 $18,568,000 Per Square Foot of GBA $667 $769 $651 $877 $812 $1,005 $761 $711 IV.Projected Revenues A.Residential Revenue $17,097,000 $1,741,000 $1,168,000 $12,863,000 $10,220,000 $363,000 $622,000 $1,234,000 Per Market Rate Unit $1,246,800 $4,500 $4,200 $2,060,700 $1,620,200 $3,700 $4,200 $5,100 Per Affordable Unit $444,500 NA NA $499,000 $499,000 NA NA NA B.Total Net Sales Revenue / Value $16,157,000 $28,825,000 $31,327,000 $12,156,000 $9,658,000 $5,925,000 $10,325,000 $20,650,000 V. $1,939,000 $2,883,000 $3,133,000 $1,459,000 $1,159,000 $593,000 $1,033,000 $2,065,000 VI.Net Surplus/(Cost) A.Net Sales Revenue / Value $16,157,000 $28,825,000 $31,327,000 $12,156,000 $9,658,000 $5,925,000 $10,325,000 $20,650,000 B.Revenue Offsets Total Development Cost $13,901,000 $25,573,000 $27,943,000 $10,672,000 $8,279,000 $5,041,000 $8,158,000 $18,568,000 Threshold Developer Profit 1,939,000 2,883,000 3,133,000 1,459,000 1,159,000 593,000 1,033,000 2,065,000 Total Revenue Offsets $15,840,000 $28,456,000 $31,076,000 $12,131,000 $9,438,000 $5,634,000 $9,191,000 $20,633,000 VII.Net Surplus/(Cost)$317,000 $369,000 $251,000 $25,000 $220,000 $291,000 $1,134,000 $17,000 Threshold Developer Profit @ 12% Net Residential Sales Revenue or 10% of Apt Value SUMMARY OF PROPOSED ZONING PROTOTYPES SITE F CD-C Zone CN Zone CC(2) Zone RM-20 Zone RM-30 Zone RM-40 Zone Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 63     Housing Incentive Program Study Page 6 Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024 D. Additional Policy Considerations The following section provides additional policy considerations for the City: APPLICABILITY OF ZONING MODIFICATIONS TO SMALL SITES The City is also interested in understanding the impact on financial feasibility if the reductions in required parking ratios and/or building height and FAR are less substantial than those applied in the Proposed Zoning Prototypes analysis. A key factor that should be considered in the decision making process is that many of the sites evaluated in this analysis are fairly small – consisting of between 5,000 and 15,000 square feet of land area. For a development on a small site to achieve financial feasibility it is necessary to be able to create an extremely efficient design. Parking Standards The proposed reduction in the parking requirements significantly enhances the potential for financially feasible residential uses to be developed. A change to the proposed parking standard would require more site area to be dedicated for parking spaces, which would materially reduce the site’s buildable area. Given the limited number of units that each site can support a loss of even a few units on each site results in a significant impact on financial feasibility. Height and FAR Standards The achievable building footprint on a small site is disproportionately lower than the footprint that can be accommodated on a more typically sized development site. The proposed increases in FAR and height are necessary to compensate for this limitation. Recognizing the small number of units that can be accommodated per floor, even the reduction of one floor of building area has a significant impact on financial feasibility. APPLICABILITY OF ZONING MODIFICATIONS TO LARGER SITES As discussed above, this analysis primarily focuses on small sites. The site sizes were intended to be representative of typical parcel sizes within each zoning designation. However, the proposed zoning Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 64     Housing Incentive Program Study Page 7 Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024 modifications may be applied to sites of all sizes within each zoning designation. Therefore, a developer may utilize the proposed zoning modifications on sites larger than evaluated in this analysis. Without the physical constraints imposed by small sites, larger sites will likely be developed with more efficiently designed projects. Therefore, it is possible that the proposed zoning modifications will have a greater positive financial impact on larger sites. CURRENT CITY PERMITS AND FEES The pro forma analyses included in this report take into account the City’s current permits and impact fees. Specifically, the development costs for each prototype include the following impact fees: parks fee, community center fee, libraries fee, public safety facilities fee, general government facilities fee, school district fee, and the in-lieu art fee. As such, the financial analyses demonstrate that Proposed Zoning Prototypes are financially feasible with the City’s current impact fee schedule. CONCLUSIONS Based on the financial analyses that KMA has prepared over the course of this engagement, it is our opinion that the proposed modifications to the zoning standards are necessary to create sufficient incentive to attract residential development on the prototypical sites evaluated in this analysis. This is particularly true of the parking requirements and building height/FAR, all of which tend to have an outsized impact on financial feasibility. Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 65     To download the complete Keyser Marston Associates’ report, “Housing Incentive Program Study: Testing The Financial Feasibility Of Multi-Family Housing Typologies,” please use the link below: https://www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development- services/long-range-planning/kma-housing-incentive-program-report_complete.pdf Item 2 Attachment C_Financial Feasibility of Multifamily Housing Typologies     Packet Pg. 66     Middlefield Road Cowper Street Waverley Street Alma Street El Camino Real Louis Road Hy 101 South Ross Road Hy 101 North Webster Street Bryant Street Channing Avenue East Bayshore Road Sand Hill Road Hamilton Avenue Page Mill Road Lincoln Avenue San Antonio Road University Avenue Newell Road Oregon Expressway Seale Avenue South Court High Street Charleston Road Park Boulevard East Meadow Drive Stanford Avenue Colorado Avenue West Bayshore Road Foothill Expressway Hanover Street Miranda Avenue Arastradero Road Fabian Way Homer Avenue Greer Road Ramona Street Edgewood Drive Loma Verde Avenue Everett Avenue Churchill Avenue Matadero Avenue Lowell Avenue Center Drive Tennyson Avenue Los Robles Avenue California Avenue Barron Avenue Welch Road Kingsley Avenue Maybell Avenue Wilkie Way Hansen Way Coleridge Avenue Byron Street Ely Place Oregon Avenue Marion Avenue North California Avenue Emerson Street Pitman Avenue Laguna Avenue Grove Avenue Ferne Avenue Porter Drive Castilleja Avenue Hale Street Chimalus Drive College Avenue Amherst Street Seneca Street Lane 66Bowdoin Street Stockton Place Harker Avenue Embarcadero Road Ames Avenue El Dorado Avenue La Para Avenue Clark Way Grant Avenue Birch Street Hawthorne Avenue Clara Drive Coyote Hill Road Columbia Street Georgia Avenue Hillview Avenue Rhodes Drive San Antonio Avenue Cambridge Avenue Olive Avenue La Donna Street El Camino Way Parkinson Avenue Kipling Street Pasteur Drive Heather Lane Kellogg Avenue Alger Drive Florales Drive Forest Avenue Monroe Drive Greenwood Avenue Boyce Avenue Sherman Avenue Oberlin Street Nathan Way Urban Lane Harvard Street Iris Way Hopkins Avenue Dana Avenue Fulton Street Sutherland Drive Lambert Avenue Vineyard Lane Marshall Drive Geng Road Orme Street El Carmelo Avenue Parkside Drive Walnut Drive Maddux Drive Sheridan Avenue Wildwood Lane Elsinore Drive Fernando Avenue Moreno Avenue Sutter Avenue Edlee Avenue Ventura Avenue Arbutus Avenue Chaucer Street Shopping Center Way Walter Hays Drive Jackson Drive Kenneth Drive Patricia Lane Whitclem Drive Cereza Drive Towle Way Guinda Street Transport Street Lane 21 Bruce Drive Encina Grande Drive Faber Place Los Palos Avenue Ruthven Avenue Laguna Way Whitsell Street Janice Way Bibbits Drive Warren Way Madrono Avenue Mayview Avenue Rorke Way Evergreen Drive Stelling Drive Ashton Avenue McKellar Lane Jefferson Drive Santa Rita Avenue Addison Avenue Saint Claire Drive Rinconada Avenue Second Street Encina Avenue Silva Avenue Quarry Road Bryson Avenue Fabian Street Nevada Avenue Southwood Drive Lupine Avenue Poe Street Park Avenue Portola Avenue Suzanne Drive Sycamore Drive Washington Avenue Manzana Lane Ash Street Portage Avenue Elwell Court Wellsbury Way Pepper Avenue Wells Avenue Lane 7 East Tasso Street Lytton Avenue Mark Twain Street Maple Street Laura Lane Dinah's Court Melville Avenue Palm Street Lane 30 Tioga Court Shasta Drive Diablo Court Varian Way Saint Francis Drive Page Mill Road Park Boulevard Byron Street South Court Byron Street Fulton Street Lytton Avenue Dana Avenue Oregon Avenue Bryant Street Emerson Street San Antonio Road College Avenue Ramona Street Georgia Avenue Oregon Avenue Mountain ViewStanford University Menlo Park Atherton East Palo Alto Los AltosPortola Valley Los Altos Hills Stanford Menlo Park Mountain View Los AltosLos Altos Hills Atherton Portola Valley Cupertino Stanford University Redwood City East Palo Alto Sunnyvale Woodside Legend Housing Incentive Program Parcels - Existing Housing Incentive Program Parcels - ProposedHousing Inventory Sites 7/8/2024 NVCAP £¤101 Item 2 Attachment D: Existing and Proposed HIP Eligible Locations Map     Packet Pg. 67     Item 2 Attachment E: State Density Bonus Law Handout     Packet Pg. 68     Item 2 Attachment E: State Density Bonus Law Handout     Packet Pg. 69     Item 2 Attachment E: State Density Bonus Law Handout     Packet Pg. 70     Item 2 Attachment E: State Density Bonus Law Handout     Packet Pg. 71     Item No. 3. Page 1 of 1 Architectural Review Board Staff Report From: Planning and Development Services Director Lead Department: Planning and Development Services Meeting Date: October 3, 2024 Report #: 2409-3496 TITLE Draft Architectural Review Board Meeting Minutes for September 5, 2024 RECOMMENDATION Staff recommends the Architectural Review Board (ARB) adopt the attached meeting minutes. ATTACHMENTS Attachment A: Minutes of September 5, 2024 AUTHOR/TITLE: ARB Liaison1 & Contact Information Jodie Gerhardt, AICP, Manager of Current Planning (650) 329-2575 Jodie.Gerhardt@CityofPaloAlto.org 1 Emails may be sent directly to the ARB using the following address: arb@CityofPaloAlto.org. Item 3 Staff Report     Packet Pg. 72     Page 1 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 ARCHITECTURAL REVIEW BOARD DRAFT MINUTES: September 5, 2024 Council Chamber & Zoom 8:30 AM Call to Order / Roll Call The Architectural Review Board (ARB) of the City of Palo Alto met on September 5, 2024, in Council Chambers and virtual teleconference at 8:34 AM Present: Chair Kendra Rosenberg, Vice Chair Yingxi Chen, Boardmember Mousam Adcock, Boardmember Peter Baltay, Boardmember David Hirsch Absent: None. Oral Communications None. Agenda Changes, Additions and Deletions None. City Official Reports 1. Transmittal of 1) the ARB Meeting Schedule and Attendance Record, 2) Tentative Future Agenda items and 3) Recently Submitted Projects Jodie Gerhardt, Manager of Current Planning, went over the calendar of future meetings. She spoke about the September 19 meeting to review the 4335-4345 El Camino Real project and Housing Incentive Program and proposed changes. She stated there were no new addresses on the pending projects. She mentioned 660 University where a Builder’s Remedy had been filed. She provided information about a code compliance submittal for 3150 El Camino Real. Boardmember Hirsch queried if 3150 El Camino Real fell into the housing sites they would be discussing the following week. Ms. Gerhardt confirmed that 3150 El Camino Real was a Housing Inventory Site with at least 113 units allocated to it. Action Item Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 73     Page 2 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 2. PUBLIC HEARING / QUASI-JUDICIAL. 180 El Camino Real [23PLN-00323]: Recommendation on Applicant’s Request for Approval of a Major Architectural Review of exterior storefront revisions and improvements including a redesigned outdoor dining area, façade revisions, new signage and updated lighting for an existing restaurant tenant, The Melt (Space #705A, Building E), at the Stanford Shopping Center. Environmental Assessment: Exempt from CEQA per Section 15301 (Existing Facilities). Zoning District: CC (Community Commercial). Chair Rosenberg, Vice Chair Chen, Boardmember Hirsch and Boardmember Mousam Adcock all disclosed having visited the site. Boardmember Baltay disclosed he had visited the site earlier in the week. He noticed that the Pacific Catch Restaurant has now placed a series of umbrellas along the sidewalk in a manner that narrows the width of the sidewalk to less than eight feet. Tamara Harrison provided a slide presentation discussing The Melt in the Stanford Shopping Center at 180 El Camino Real including the project location, overview of Master Tenant Façade and Sign Program, project overview, existing versus proposed façade, colors and materials board, signage considerations, key considerations and conditions and the recommended motion. Aliana Ramos talked about her participation in the project and gave a background of the development of the concept. She discussed the proposed changes providing slides for visuals. PUBLIC COMMENT None. Boardmember Adcock wanted to know where the one new bike rack would be located. Ms. Harrison explained that the City and Stanford had been working on an existing Bike Plan Layout for the overall Stanford Center that shows where the upcoming stalls versus the existing stalls would be. Boardmember Baltay wanted clarification on how many new bicycles spaces were being added due to this project and where they are going. Ms. Harrison replied this project was only required to add one bicycle space per the size of the tenant space. As the new ARB projects come forward at Stanford, the practice has been to condition them according to the size of the tenant space. The 24 spaces that were shown were from previous ARB approvals in the past. Jason Smith added there was an overall exhibit identifying where all the bicycle parking spaces were located. Boardmember Adcock queried if there would be a separate project to add these bike parking spaces. She had questions about the finishes including the trim, the existing white tile, the bottom area, the spacing of the slats, the fence and the light fixture proposed. Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 74     Page 3 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 Ms. Harrison explained as part of the building permit process, staff would make sure that the bike parking location is shown consistent with the bike parking layout they had been working on for the Center. Prior to final occupancy, a final planning inspection would be required to ensure everything to be consistent with what had been approved. That would be checked as a part of that inspection process and if everything is consistent and in place, then it will be signed off on. Ms. Ramos commented the trim across the top would be removed and patched as needed but the overall texture above that thin brick would remain the same and get painted. She stated the existing white tile that looks like a brick pattern would be pulled out and new brick would be glued in place. The bottom area that looked like concrete would be painted a dark gray. The slats were going to be horizontal planks set to achieve 42 inches above the ground. The final details will have to get coordinated for that piece as it is custom. The plan is for it to be about 20 percent open. The fence will be located in the same place as the current white fence. She pointed out an area to the north that would be getting closed off but the layout of the patio would remain the same. She said that the light fixture proposed would be relocated into the interior to make sure the sidewalk had enough clear space. Boardmember Baltay had questions about the brick wainscot being replaced, the existing trim around the arched openings, what new trim was being added, the material behind the glass on the spandrel panel, the ceiling and the new signage over the entry door. Chair Rosenberg asked about the dimensions of the sign and wanted to know if it was in compliance. Ms. Ramos stated the brick wainscot was being coordinated with the existing height of the tile so the texture difference would not be noticeable. She believed they were keeping the same profile around the arched openings but paint it a darker gray. They are proposing the spandrel to make sure the interior can function well. It will be like a matte black on the interior. The glass will be seen from the outside but it will not be transparent. The dimension between the M and the T of the sign would be 18 inches. Kate Culley-Rapata stated they proposed some small flex trim profiles to supplement the original arch profile. It would all be painted and be applied to look as if it is a part of the arch. It is meant to highlight the arch. It would be applied to both sides of the arch. She provided a slide for visuals. The reason for changing the spandrel from metal was an effort to unite all three arches with the same treatment. The ceiling below the level of the arch infill is a drop ceiling. She said the signage was individual letters and discussed how they were separated. They come out the same distance from the wall and have LEDs within with the amber acrylic rod. She agreed to come back with the dimensions of the sign. Ms. Harrison confirmed the sign measurements were in compliance. Vice Chair Chen wanted clarity about the elevation design above the entrance door. She wanted explanation about the permanently covered area counting toward the grass floor area and wondered if it mattered whether it was fully covered. She observed there should be an update on packet page 19. Ms. Ramos pointed out renderings that accurately depicted the design. Ms. Culley-Rapata understood that the letters could be mounted directly and coordinated from the back of the store after demo. The intent was to have a solid panel. The elevation without the reveal line was correct with the letters on the top part of the plate. Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 75     Page 4 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 Ms. Harrison remarked that the proposed trellis would be considered remaining 50 percent open and would not have any kind of covered gross floor area. The proposed outdoor seating area would not count toward the glass floor area. She confirmed packet page 19 required an update. Boardmember Baltay queried how an outdoor area qualifies as covered and counting toward floor area. He wanted to know the intent of the roof covering. Ms. Gerhardt explained if the trellises are 50 percent open they are not considered to be covered. The same is true for standard umbrellas. A 100 percent solid cover would be considered floor area. She stated there are some trellis type features where the slats move locations and would be considered covered. Ms. Ramos said the intent of the roof covering was for the two umbrellas that can be shifted down or tilted. The slatted area would not have any additional covering over it. Vice Chair Chen mentioned the two canopies on the right attached to the wall which is glazing and has glass on it. She wanted to know if the grass floor area will be reduced if that is removed. Ms. Ramos answered the two canopies on the right were not glass. The glass one is over the front door. Ms. Gerhardt added the original front door would not be considered floor area because it is not being used for tables. The other two canopies are permanently covered and there are tables under them the square footage would be reduced. Chair Rosenberg asked for confirmation that the wood color of the fencing would be Spanish walnut that was represented in the sample. Ms. Culley-Rapata confirmed the wood color to be Spanish walnut. She added the lighting affected the appearance of the color in the renderings. Boardmember Hirsch questioned the function of having a garage door that opens up into the ceiling. He speculated during cold or rainy weather, entry would be through a double door that opens out. He asked if the reflected ceiling plan was taken into consideration that it will close over existing lighting on the inside of the building. He asked about the brick and siding turning the corner between Sushi Roku and the Melt. He queried the post/sidewalk lighting would be replacing a fixture on the perimeter at the roadway edge. He wanted to know who would maintain the lighting fixtures. He asked if they would be modulated. Ms. Ramos answered that the intent was that it would provide an indoor-outdoor open space depending on the weather. She stated the ceiling plane would coordinate with where the ceiling is being dropped down. It would be developed with the interior package. She explained how the brick would be transitioned to match. She said that Planning wanted a more open sidewalk so they decided to pull the light fixture into the patio space. She stated the light fixtures would not be modulated because they are so tall. The photometric engineer has determined them to be adequate. Ms. Culley-Rapata confirmed Boardmember Hirsch’s speculations about the main entry stating that was the only placed to get into the patio and property. The elevation shown on the right is a garage door with a breakaway to the side for egress. It is not the main entry or exit but would be operable as a Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 76     Page 5 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 second means of egress if the garage door is closed due to the weather. She added that the existing light poles were noncompliant with the eight-foot required clearance. Mr. Smith explained the shopping center would maintain the two light fixtures. Boardmember Baltay questioned if there was a consistent plan for sidewalk lighting on this edge of the shopping center. He asked if getting the shopping center to provide a long-term plan for the lights would be something that could be put as a condition. He asked how the width was interpreted regarding ADA ramps projecting into the walkway. He wondered if there were plans to change the canopy at the service entrance to the shopping center just right of The Melt to make it more compatible. Mr. Smith answered no overall plan has been put in place yet to relocate the shopping center light. It will be on a case-by-case basis when it impedes pedestrian flow in front of patio areas. He said regarding the ADA ramps projecting into the walkway, they chamfered the corners of the patio area for the egress coming into the space. The entry to the right of The Melt was updated recently during another project approval that came through the Board and there is no plan to further update at this time. Ms. Gerhardt stated the long-term plan for lights could be handled similar to how they are handing bicycles. She stated the eight-foot width for ADA ramps was an unofficial policy but has been consistently applied in the last many years to try to keep the eight-foot clearance for pedestrians around all the tenant spaces. Boardmember Hirsch asked if the lighting diagrams met standards appropriate for outdoor eating. Ms. Culley-Rapata replied a lighting designer had been consulted on this project who checked and performed photometrics and agreed the lighting was sufficient. Boardmember Baltay felt it was not appropriate to condition The Melt with the light fixtures but it was the wrong solution to put industrial level light fixtures right over the dining tables. He advised the shopping center needs to have a fixture solution for what the standard thing is. He supported having staff get that standard from them. Chair Rosenberg thought it was a clever solution to shift the lights inboard. The question was if The Melt would be satisfied with the street lamps that Stanford Shopping Center uses already. She thought that once they get a comprehensive plan together for what fixtures they're going to use would be an appropriate time for Stanford Shopping Center to switch them out but putting the onus on The Melt seemed inappropriate. She was curious if they should have a meeting with Stanford Shopping Center to discuss these items. Ms. Gerhardt replied they could have a study session with the ARB. Boardmember Baltay speculated that the lighting solution was not a thought through design. He thought they should agree or not agree to have a condition of approval that this gets resolved somehow. He wanted to see a real solution for safely and attractively lighting the sidewalk at this whole edge of the shopping center. Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 77     Page 6 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 Ms. Gerhardt pointed out a similar situation where the lights were installed closer to the curb and offered that as a solution. She suggested allowing a shorter encroachment in limited circumstances to maintain consistency. Chair Rosenberg thought it was more appropriate to have the light fixtures out toward the curb for safety reasons. She cautioned the Board to be thoughtful about leaving this open-ended to find out what the solution would be without holding up the potential development of the project. Boardmember Adcock suggested conditioning the approval with not using street lights as part of the lighting strategy for the outdoor dining. Boardmember Baltay suggested informally stretching the policy to having up to a one-foot projection would give them a solution and give staff something to run with. He thought the shopping center should come to a solution with staff overall. Chair Rosenberg thought this was an elevation in the design of this building. She preferred the oak color of the rendering. She felt the gray color was complimentary with the neighbor. Boardmember Hirsch said the brick was lightening up the whole façade so why not the outer element as well. It seemed extremely heavy with the dark black walnut look. Boardmember Adcock agreed going with the lighter color. Boardmember Baltay did not understand how the flex trim application detail around the arch would work. He thought it would be a mistake to change it. He recommended just painting what was there and not adding the additional piece. Boardmember Adcock was in agreeance and did not see a dimension to the existing molding. She did not see how the add-on piece related to the existing molding. He thought the spandrel panels proposed in the rendering were a mistake. He suggested metal panels might be a better solution. He observed that having garage door next to a human door would impede in the dining area. He suggested considering a folding door instead. Boardmember Adcock thought spandrel glass with a black finish coating on number two surface would read a lot better than film on the inside. She suggested an integrated folding door with the egress door would be a nicer long-term solution. Chair Rosenberg agreed that a bi-folding door would solve all the problems but did not see an issue with the garage door. Vice Chair Chen thought there could be refinements and details on the front elevations. She suggested wrapping around the bricks to the Sushi Roku side. Boardmember Baltay disagreed as he opined it would be a big impediment on the Sushi Roku side to have the very distinctly different material impacting their dining area. He thought lining it up with the Sushi Roku canopy going the length of a brick was an elegant solution. It would be painted to match. Chair Rosenberg observed pain would best provide the transition between the tiles. Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 78     Page 7 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 MOTION: Boardmember Baltay moved to recommend approval of this project as presented with the following modifications and seconded by Chair Rosenberg: 1. Eliminate the flex molding around the arch openings. 2. Use spandrel glass with a dark surface on the number two surface. 3. Do not relocate the existing streetlights into the dining area. Rather, allow streetlights to be relocated such that a seven-foot clearance is maintained. 4. Change the color of the wood planks to match the coloring in the rendering on the patio wall. 5. Consider using bi-folding doors instead of overhead garage doors. VOTE: Motion carried 5-0. 3. PUBLIC HEARING / QUASI-JUDICIAL. [23PLN-00110] 3000 El Camino Real (Palo Alto Square): Recommendation on Applicant’s Request for Approval of a Major Architectural Review for facade changes and site improvements associated with conversion of a vacant theater use to an office use within Building 6. Exempt from the provisions of the California Environmental Quality Act in accordance with CEQA Guidelines Section 15303 (new construction and conversion of small structures). Zoning: PC-4648. For more information contact the project planner Claire.Raybould@Cityofpaloalto.org. Chair Rosenberg, Vice Chair Chen, Boardmember Baltay, Boardmember Hirsch and Boardmember Adcock all disclosed having visited the site. Chair Rosenberg announced they read through each email sent as public comment. Claire Raybould, Principal Planner, brought a slide presentation discussing the 3000 El Camino Real project including the project location, project overview, key considerations, feedback from public comment and staff recommendation. Krista Olson, HGA Architects, and Claire Adams, landscape architect at SWA, shared a slide presentation of the project including an aerial view of the site, site plans, existing views, a rendering of the proposed glazing, an illustrative site plan, landscape plan, tree protection zone, landscape palette, architectural materials, ground floor plan, mezzanine floor plan, building sections, west elevation, north elevation, east elevation and south elevation. PUBLIC COMMENT Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 79     Page 8 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 Herb Borock believed the item should be continued until a proper environmental document was presented for the entire project that would include amending that portion of the planned community zone. Boardmember Baltay wanted clarification that a sign on the site was not a requirement for proper notification and if the language of the code stated that they could not recommend approval if they were unable to find that the project is in compliance with applicable portions of the comprehensive plan. Ms. Raybould explained that a sign on the site was not required for minor architecture review applications. The applicant’s argument was that the project was a minor architecture review application. The city stated that if the application was going to be processed, it would be moved to the Board, which is within our purview if we feel that it requires a public hearing. The city also has the discretion to defer the final decision to Council under the code from the director to the council, which they felt was appropriate in this circumstance. She confirmed that the Board could not find that the project complies with those things they could choose not to recommend if they found it not to be in compliance. Ms. Gerhardt explained the comprehensive plan is a broad brush document. No project could adhere to all of the different policies and programs that are in the comprehensive plan. Their analysis is usually that on balance, a project conforms with the comprehensive plan. Zoning would need to adhere to all zoning requirements. Chair Rosenberg wanted clarification where the zoning stands for this property. Ms. Raybould explained the applicant's position was that a zoning amendment was not required and that they could submit an architecture review application and that they are consistent with the zoning because the zoning allows for a mix of land uses of which office is included. It does not specify a specific mix that has to be achieved on the site. There is additional language with respect to net leasable floor area that is detailed in the staff report that they feel that they are compliant with. Vice Chair Chen asked for clarification which code sections they could look into regarding adding square footage on the second floor. She wanted to know if there were thoughts about shading consideration on the west elevation or if there were additional architectural features to reduce glare inside. She observed the two green walls on the south elevation were not symmetrical. She wanted to know the design intent of the stairs. She wanted explanation as to why turf was being used. She asked for the scale of the breeze block wall. She wanted explanation about the materials. Ms. Raybould answered the PC zoning for the site was on packet page 61, Item number 3 under B, Improvements. It states the 1 and 2 story buildings, which includes 4 of the 6 buildings on the property, shall not exceed a total of 85,000 square feet of net rentable floor area with 65,000 square feet to be on the ground floor. They are providing 67,000 square feet in total so they are under the 85,000 total. The actual square footage was on page 44. Ms. Adams stated they would not be adding any additional trees on the west side because they would not fit on the sidewalk. She explained the decision to use turf was to keep material selection low water usage and drought tolerant. She explained the breeze block feature wall would be CMU blocks, six inches in height. It would be on the upper portion of the wall, around four inches in height. The Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 80     Page 9 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 materials were made of terracotta clay tiles. She thought they were four by six inch blocks and would be stacked and mortar set on top of the CMU wall. Ms. Olson added there would be some type of window shading devices inside. They had not proposed anything to be added to the exterior of the building at that time in order to keep with the original architectural features. The asymmetry of the south elevation had to do with what could be proposed on the inside and where they would want the light coming in. She said there was no stair design yet. Abigail Hammett, HGA Architects, suggested it would be helpful to look at the northwest rendering of the breeze block wall. Chair Rosenberg queried if there was any interior design plans for an elevator. She observed there was discrepancy between the rendering that shows all of it being breeze block and some of the other images show a bit more CMU and sort of a breeze block infill panel. Ms. Olson answered there were no design plans for an elevator as it was not needed for code since they were meeting the mezzanine code requirements. Ms. Adams used a slide of the elevation to view the rendering and explained the one shown previously was outdated. She explained it would be two layers of breeze block stacked on top of each other. The total height would be 7 feet. Boardmember Adcock had questions about the wall panels, glazing material and mullion pattern. Ms. Olson replied a part of putting the glazing in would spark doing some structural seismic upgrades. The mullion lines were lining up with the new doors that would be added to the backside and the doors on the front side. The other mullions would try and mimic what exists on the front. There an eight-foot horizontal mullion would loop back around to the existing entry doors. She said they would keep with the bronze anodized mullion glazing and propose a more clear low E glass glazing, high performance to meet title 24. It would be replaced with dual pane. They preferred the clear glazing for transparency. Jared Willis, director of construction with Hudson Pacific, remarked they were precast concrete which would be saw cut out and replace with a structural system on the inside to re-support the sheer activity of the walls and replace the glazing in place. Boardmember Hirsch did not see any cellar plans. He asked about the mechanical system. He asked if the wall could be cut in a vertical panel. Ms. Olson remarked the back stairs on the backside were egress doors from the theater. They were proposing to remove or fill in the stairwells going down and it would become one level area. She said a mechanical upgrade would have to be done. They would expand the mechanical screen on top to accommodate additional mechanical equipment when the interiors are done. She thought it would be kept open in order to keep the height. There would exposed ducts for the HVAC. The mechanical equipment would be on the roof. Mr. Willis explained the exact structural and demo requirements had not been fully explored at this stage but the southern elevation wall would be cut into smaller sizes to reduce heat gain. They chose smaller windows because of the less desirable view. Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 81     Page 10 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 Boardmember Adcock asked if the wall on the east side would have the floor line visible through or have spandrel somewhere halfway up the glazing. Mr. Willis used a slide to explain the mezzanine level was to the right on the bottom image and is not intended to extend out past the last panel. On the parking lot side, it would be cut horizontally across the windows with something to obscure the floor line. Chair Rosenberg observed a space on the mezzanine level that had no space for windows which would not allow for ventilation. She asked if there was any understanding of what the intent of this interior upper mezzanine will be. She asked if it would be maintained so every office has a window. Her concern was that the project had not be thought through. She asked to have the where the transition on the ground floor would begin pointed out on the gridlines. She wanted to understand where the bronze glazing would remain versus where the new glazing would come in and what they would do with the infill panels. She asked if there were any potential landscaping that might be more conducive to just blocking the doors off. Mr. Willis answered they would have offices on the upper mezzanine area. He imagined the space identified might be more support spaces but it was not yet determined. He did not know the final layout of the offices and could not promise every single one had a window. He explained the transition on the ground floor would begin roughly at the R line. He did not yet know the depth that would need to be filled in. He said the doors that were becoming conference spaces in the front. There was just concrete in front of the doors and they were not proposing any changes to the exterior property in that area. Female stated they were going to try and match the infill panels. Chair Rosenberg asked if they would be power washing or painting the building. Mr. Willis answered the intent was to keep the original concrete and it would have to be cleaned to remove the ivy. Vice Chair Chen asked where the site plan showed the location of removal of 14 short-term bicycle parkings. Mr. Willis stated short term parking exists in the tree grove on the south side, which he thought would need to be removed for the construction but there was no intention to delete bike parking. Chair Roseberg asked if there was any pathing or progress for where the trash would be. Mr. Willis stated there is a large trash enclosure on the south side next to the existing parking structure. They would have standard office millwork trash cans. Boardmember Baltay asked if he was correct that they have chosen to define the PC zone by the PC text. He wondered how they could make a finding that it is compliant with zoning when the zoning was not defined. Ms. Raybould explained the development plan is the buildings and the PC language defines the uses that are allowed on the site. She confirmed the project has been brought as an architecture review because the physical buildings are being modified and were defined not by the text of the ordinance but rather Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 82     Page 11 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 by the existing buildings. She stated the recommendation was phrased so they would make a recommendation with the caveat that that recommendation that if Council felt that the project to be consistent with the zoning, they would make a decision to approve the project. If they fundamentally felt it was not consistent with the zoning, then they would deny the project. Ms. Gerhardt added all of their PCs have permitted and conditional uses. Over time the uses inside of the structure are going to change so they write the PC in such a way to allow for changes of uses. The code allows for minor changes to a PC through the staff level architecture review process. Boardmember Hirsch asked how they would be treating the surfaces of the panels they would be cutting. Mr. Willis said they were leaving the existing concrete panels. Chair Rosenberg thought the intent of the exterior design to be thoughtful. She had a concern with approving something when they did not know what was happening inside. Keeping the bronze was concerning to her. She personally had concern about whether more office space was needed. She was uncomfortable with the building not having an elevator. She was concerned with all of the issues that were left undecided. Boardmember Hirsch agreed with Chair Rosenberg’s discomfort of approving something without knowing about the interior. Boardmember Adcock shared hesitation due to the lack of design of the interior that leads to lack of exterior design. Vice Chair Chen agreed a lot of things were pending. Boardmember Baltay pointed out they had to make six findings to recommend approval. He did not think they could make the last five findings because they did not have a complete enough design. He opined they could continue this and get additional work done to make those findings. He was struggling with number one related to zoning and the comprehensive plan. He discussed the Comprehensive Plan Item Policy L1.6 that specifies the project should encourage land uses that address the need of the community and manage change and development to benefit the community. He advised recommending denial of the project based on not being able to make finding number one. He did not think the proposed changes would allow them to make Policy Finding L1.6. Boardmember Hirsch opined using the legalities of their zoning against the owner was unreasonable. He thought Council should advise a replanning of the site rather than just not approving it. He felt that a larger plan for the site was what was missing. Chair Rosenberg wondered if they used the same proposal and façade but changed the use, would the best path forward be to deny the application or continue to a date uncertain and allow them the opportunity to figure out what they really want to use this space for. She agreed that finding number one Policy L1.6 was not being met. Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 83     Page 12 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 Boardmember Adcock was in agreement with Chair Roseberg’s comments. She thought it was unclear if it meets the zoning requirement and was the Council’s decision to make. She did not think it made sense to completely deny it because they proposed an office. Boardmember Baltay recalled recommending denial of a project in the past due to not meeting the fundamental tenant in the comprehensive plan. The applicant proposed an alternate project that was in compliance and the project moved forward. He said they should let Council know they could not make finding number on. Chair Rosenberg requested input from staff in regards of denial versus continuance and how that may affect the process of the project. She wondered if it was for them to tell the current owners how to use the site. Ms. Gerhardt agreed that if they have architectural concerns would be a good reason to continue the project but if they have concerns with finding number one, denial was the better course of action. Ms. Raybould remarked the question for Council was if a change in the uses require a zoning amendment if they are considering a mix of uses on the site if there's a list of permitted and conditionally permitted uses. MOTION: Chair Rosenberg moved to recommend denial of the project based on the proposed use not meeting Finding #1, Policy L-1.6 of the Comprehensive Plan, seconded by Boardmember Baltay. VOTE: Motion carried 5-0. Approval of Minutes 4. Draft Architectural Review Board Meeting Minutes for July 18, 2024 MOTION: Boardmember Adcock moved to approve Draft Architectural Review Board Meeting Minutes for July 18, 2024, as written, seconded by Chair Rosenberg. VOTE: Motion carried 5-0. 5. Draft Architectural Review Board Meeting Minutes for August 15, 2024 Vice Chair Chen pointed out her name was misspelled in the roll call. 1.MOTION: Vice Chair Chen moved to approve the Draft Architectural Review Board Meeting Minutes for August 15, 2024, with the change in spelling of her name from Ping to Ying, seconded by Chair Rosenberg. VOTE: Motion carried 5-0. Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 84     Page 13 of 13 Architectural Review Board Meeting Draft Summary Minutes: 09/05/24 Board Member Questions, Comments, Announcements Or Future Meetings And Agendas Chair Rosenberg thanked the Board for their thoughtful, dedicated comments on both projects. Boardmember Hirsch announced they finally approved the San Antonio project and agreed they could do the garbage collection where they recommended it. They talked about other possibilities but would lose bicycle space in one scheme and retail space in the other scheme. Boardmember Adcock summarized that sticking with the original plan was particularly based on the fact that it was not ideal for the people who have to deal with the trash on a weekly basis but any other location was going to greatly impact a large number of residents. Adjournment Chair Rosenberg adjourned the meeting at 12:15 p.m. Item 3 Attachment A: Minutes of September 5, 2024     Packet Pg. 85