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HomeMy WebLinkAbout1996-02-20 Ordinance 4332• • ORDINANCE NO. 4332 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING AN AMENDMENT TO THE PALO ALTO MEDICAL FOUNDATION DEVELOPMENT AGREEMENT The Council of the City of Palo Alto does ORDAIN as follows: S CTION 1. The City Council finds as follows: A. In 1991 the City of Palo Alto ("City") and the Palo Alto Medical Foundation ("Foundation") entered into a Development Agreement with respect to certain Foundation property in Downtown Palo Alto ("Downtown Site"), upon which Foundation intended to develop an expanded medical clinic and medical research facility. B. Foundation has received approvals from City which will allow development by Foundation of a new medical clinic and medical research facility outside the Downtown Area (the "Urban Lane Site") . C. Tie City approvals for the Urban Lane Site are conditioned upon amendment to the Development Agreement, to ensure that the facilities at the Urban Lane Site will replace the facilities at the Downtown Site, allowing for planned redevelopment of the Downtown Site for other uses. D. The City Council finds and determines that notice of intention to consider the First Amendment to the Development Agreement has been given pursuant to Government Code section 65867. E. The City Council has conducted a public hearing on the First Amendment to the Development Agreement, and on the approvals for the Urban Lane site, which include amendments to the Comprehensive Plan. F. The City Council has reviewed and considered the information contained in the Palo Alto Medical Foundation New Campus Final Environmental Impact Report, has certified the adequacy of the EIR, and has made tfindings upon the significant environmental impacts identified in the EIR, including a statement of overriding considerations. G. The City Council finds and determines that the First Amendment to the Development Agreement is consistent with the Comprehensive Plan of the City of Palo Alto, as amended. The City Council has specifically considered the regional welfare and the impacts of the development agreement upon the regional welfare. The City Council finds and determines that the benefits of the 1 960105 lac 00110167 • • project set forth in the First Amendment to the Development Agreement and the statement of overriding considerations establish the reasonable relationship of the project to the regional welfare; SECTION 2. The City Council hereby approves the First Amendment to the Development Agreement between the City of Palo Alto and the Palo Alto Medical Foundation for Health Care, Research, and Education, a California nonprofit public benefit corporation, a copy of which is attached hereto as Exhibit "A", and authorizes the Mayor to execute the agreement on behalf of the City. SECTION 3. The City Clerk is directed to cause a copy of the development agreement to be recorded with the County Recorder not later than ten (10) days after it becomes effective. SECTION 4. This ordinance shall be effective upon the thirty-first (31st) day after its passage and adoption. INTRODUCED: January 29, 1996 PASSED: February 20, 1996 AYES: ANDERSEN, FAZZ.INO, HUBER, KNISS, ROSENBAUM, SCHNEIDER, SIMITIAN, WHEELER NOES: ABSTENTIONS: NOT PARTICIPATING: MCCOWN ABSENT: A'ITBS it Sen' •r Asat . City Attorney APPROVED: Director of Planning and Community Environment nager 90105 be 0010167 2 • • This document is recorded for the benefit of the City of Palo Alto and is entitled to be recorded free of charge in accordance with Section 6103 of the Government C9$R. After Recordation, mail to: OFFICE OF THE CITY ATTORNEY 250 Hamilton Avenue Palo Alto, CA 94301 FIRST AmENDKENT TTo DEVZLOPUENT AGREEMENT Between PALO ALTO MEDICAL FOUNDATION FOR HEALTH CARE, RESEARCH, AND EDUCATION, A California Nonprofit Public Benefit Corporation and CITY OF PALO ALTO, CALIFORNIA A Chartered City 960409 lac 090016: YXPBT TO D AtaillanONT This first amendment ("Amendment") to the statutory development agreement ("Development Agreement * ) which was enacted and entered between the parties as of , 1991, is enacted and entered into as of the day of , 1996 ("Effective Date"), between the CITY OF PALO ALTO ("City"), a chartered city and California municipal corporation, and the PALO ALTO MEDICAL FOUNDATION FOR HEALTH CARE, RESEARCH, AND EDUCATION ("Foundation"), a California nonprofit: public benefit corporation. RECITALS THIS AMENDMENT is entered into and enacted on the basis of the following facts, understandings and intentions of the parties: A. This Amendment uses certain capitalized teams, which are defined either herein or in Section 1 of the Development Agreement, which was filed for record in the office of the Santa, Clara County Recorder on November 3, 1991. The meaning of each capitalized tern used herein, unless otherwise defined, shall be the same as that defined in the Development Agreement. B. This Amendment is enacted and entered pursuant to Government Code sections 65864-65865.5 ("Development Agreement Act"), which authorize the parties to enact, enter into and amend binding development agreements affecting the development of real property within the City's jurisdiction. C. City Resolution No. 6597 establishes procedures and requirements governing consideration and amendment of development agreements. D. Foundation is the owner of the Property, also referred to herein as the "Downtown Site," which is affected by the Development Agreement and this Amendment. Said property is described in Exhibit A hereto. E. The City Council of City has enacted certain land use regulations ("Downtown Site Plauu") affect::mg the Property, which include a Comprehensive Plan Amendment, Specific Plan, and the Development Agreement. F. Following execution of the Development Agreement, Foundation acquired an alternative site ("Urban Tare Site") for its proposed medical facility, and has applied for certain legislative and administrative development approvals ("Urban Lane Approvals") affecting the Urban Lane Site. The Urban Lane Site is more 2 960109 tac 0080168 particularly described in Exhibit *B* attached and incorporated herein by this reference. G. City has completed an Environmental Impact Report ("EIR"), which EIR has been certified as complying with the requirements of the California Environmental Quality Act ('CEQA") and all applicable City regulations, and which analyzes development of the Urban Lane Site. That EIR and the conclusions therein are based upon the representations of Foundation that the Foundation's primary medical facilities will be relocated from the Downtown site to the Urban Lane Site, and that the Downtown Site will thereafter be redeveloped for non -medical facility uses. H. Adoption of the Urban Lane Approvals by City was based upon the EIR conclusions and the representations by Foundation recited above. The parties specifically acknowledge their mutual understanding that prior to reuse of the Downtown Site, appropriate consideration and planning for its replacement land uses must be conducted. Accordingly, in order to preclude operation of medical facilities at both the Downtown Site and the Urban Lane Site, the parties agree by the terms of this Amendment to suspend implementation of the Downtown Site Plan during the interval between enactment or granting of the Urban Lane Approvals and completion of occupancy of the Urban Lane Site. Further, the parties agree to preclude occupancy or reoccupancy of the structures on the Downtown Site after occupancy of the Urban Lane Site, except for the limited purposes specifically provided in this Amendment. Further, the parties agree that Foundation shall retain a limited option to cancel this Amendment and reinstate the Downtown Site approvals. I. In order to amend the terms of the Development Agreement, Foundation has applied to City pursuant to the Development Agreement Act and Resolution No. 6597 for this Amendment to the Development Agreement. City's Planning Commission and Council duly have given notice of their intention_ to consider this Amendment, have conducted public hearings thereon pursuant to Government Code section 65867 and Resolution No. 6597, and have found that the terms hereof are consistent with. the Comprehensive Plan, as amended. J. The terms and conditions of this Amendment have been found by City to be fair, just and reasonable and, prompted by the necessities of the situation, to provide extraordinary benefits to the City. K. This Amendment is consistent with the present public health, safety and welfare needs of the residents of the City and the surrounding region. City specifically has considered and approved the effects of this Amendment upon the regional welfare. 960109 W0080168 • L. This Amendment will bind future City Councils to the terms and obligations specified in the Development Agreement and this Amendment, and in furtherance of the interests of City and regional residents and the public generally, presently exercises, to the degree specified herein and in state law, the City's authority to allow or preclude development of the Property. M. This Amendment will eliminate uncertainty in planning for orderly development of the Downtown Site and the Urban Lane Site, will provide dependable assurances to the public that only a single major medical campus facility will be operated on the foregoing properties, will help provide for an efficient transition of Foundation operations from one site to the other, and will provide Foundation with some certainty that future contingencies would not deprive it of current development rights to one or the other medical facility site. NOW THEREFORE, the parties hereby do agree as follows: GENERAL TERMS: 1. Dt:finitions. As used in this Amendment, (a) "Urban Lane Approvals" means the Comprehensive Plan Amendments, Zoning amendments, conditional use permit, Architectural Review Board approval, and design enhancement exception, together with all variances and other Discretionary Actions and City decisions and approvals deemed by Foundation to be necessary to development and use of the Urban Lane Site as an integrated medical research and treatment facility. (b) "Urban Lane Project" means the medical research and treatment facility proposed by Foundation to be built and operated at the Urban Lane Site. (c) "Occupancy" means completion of construction, commencement of tenancy and establishment of complete operations, equipment, supplies, personnel and patients at the Urban Lane Project. For purposes of this Amendment, the date of Occupancy ("Occupation Date") shall be determined by City, and shall be the later of: (i) One hundred twenty (120) days after the date when certificates of occupancy have been issued for Buildings A, B, and C at the Urban Lane Site, or (ii) One hundred twenty (120) days after the final inspection of the work authorized by the building permits for Buildings A, B, and C. 4 960109 lac 0080168 • (d) Each other capitalized term used, unless otherwise defined herein, shall have the meaning defined in the Development Agreement. 2. Interest of Foundation. Foundation represents to City that as of the Effective Date it owns the Property and the Urban Lane Site in fee, subject only to encumbrances, easements, covenants, conditions, restrictions and other matters of record. 3. $indiug Effect. Subject to the provisions of Section 17(f) of the Agreement, this Amendment and all of its terms and conditions shall run with the land, binding and inuring to the benefit of the parties and their respective assigns, heirs and other successors in interest. 4. Negation of Agency. The parties acknowledge that in entering, enacting and performing this Amendment, each is acting as an independent entity and not as an agent of the other party in any respect. Implementation of Development Agreement. Suspended. During the interval between the Effective Date and (a) Occupancy of the Urban Lane Sit cr (b) Reinstatement of the Development Agreement as defined in Section 9 hereof, Foundation shall not be entitled or authorized to use or implement the terms of tLe Development Agreement, the Specific Plan or any other Downtown Site Project Approvals. A7.1 Urban Lane Approvals shall be conditioned so as to take effect no sooner than the Effective Date of this Amendment. Nothing in this Amendment shall impair Foundation's right to continue operation of the Downtown Site until the Occupation Date defined in Section 1 hereof. 6. Right to Implement Specific Plan Terminated. The right to develop and occupy the Property in accordance with the Specific Plan and other Project Approvals, as provided in Section 8(b)(1) of the Development Agreement, shall terminate without further action of the parties upon the date ("Termination Date") thirty (30) days after the Occupation Date of the Urban Lane Site. No new development or redevelopment shall occur on the Property until completion of the planning process described in Section 10 of this Amendment. 7. Right to Occupancy Terminated; Exceptions. Foundation's right to occupy the existing facilities on the Downtown Site, for medical or any other purposes, shall terminate on the Occupation Date set forth above. The following are the only exceptions to this occupancy restriction: 5 960109 .COQCl1 (a) Such limited activity as is required to fulfill the maintenance and security obligation set forth in Section 8 of this Amendment; (b) Foundation will retain the right, in conformance with Title 18 of the Palo Alto Municipal Code, to keep or establish a small satellite medical office in the Downtown Area. This office will provide medical services as determined necessary by the Foundation. It will be staffed by a maximum of five (5) physicians (full time equivalent) and necessary associated staff, in a facility not to exceed 13,000 square feet in area. This office shall not be located within the two blocks bounded by Channing, waverley, Homer and Ramona. (c) PAMF does not have a controlling interest in the Surgicenter located at 400 Forest Avenue, which accordingly is not governed by this Agreement. Nothing contained in the Development Agreement or this Amendment shall affect the rights of Foundation to acquire, develop, lease, use or occupy any premises within the City of Palo Alto, other than the Downtown. Site, for any purpose consistent with applicable Comprehensive Plan, zoning, and other land use regulations. 8. Maintenance and Security Obligation. (a) Foundation shall provide reasonable security and maintenance of the Downtown Site structure and facilities during the period between vacation of the facilities and redevelopment of the Downtown Site. Such security and maintenance shall be designed and implemented to prevent criminal activity and blighted appearance of the Downtown Site, and to prevent the occurrence of any nuisance, including but not limited to the nuisance conditions described in Section 9.56.030 of the Palo Alto Municipal Code. Foundation's maintenance obligation shall include the following with respect to the existing landscaping: maintain healthy existing trees, shrubs, lawn and ground cover; cut weeds; clear and remove debris; and maintain and operate irrigation system. This Agreement shall not prohibit Foundation from removing without replacing dead or diseased trees and other vegetation. Foundation may discontinue planting of seasonal landscape features. (b) None of the existing buildings on the Downtown Site shall be demolished prior to issuance of permits for redevelopment of the property unless the Director of Planning and Community Environment, in consultation with the Chief Building Official and Fire Chief, determines that an imminent safety hazard exists. 6 960109 lac O0tot6S 9. At Foundation's option, at any time before completion of substantial improvements in reliance upon the final building permit(s) for improvements on the Urban Lane Site, this Amendment may be canceled by delivery of written notice of reinstatement ("Reinstatement") of the Development Agreement, delivered to City at least ten (10) days before the effective date of Reinstatement. Upon Reinstatement, the brLan Lane Approvals shall be null and void, without further action by either party, and Foundation shall immediately cease and desist any and all construction or pre -construction activity on the Urban Lane Site. Upon Reinstatement, the Development Agreement shall be in full force and effect, unaffected by this Amendment or by any other action of the parties inconsistent with its terms. 10. Cooperation in Downtown Site Piannii:.q. Foundation agrees to participate cooperatively in a City -designed planning process for the Property and nearby areas, including the mixed use South of Forest Area (SOFA) extending from the Property to Alma Street. The planning process will include use of City -contracted expertise ("Planning Consultants"), which may include but not be limited to a public process facilitator, community design expert, development - oriented economist, attorney, and other technical experts such as environmental and transportation consultants. (a) Description of Process. The planning process wi11 he designed to be conducted and completed within approximately twelve (12) months. It will be an intensive neighborhood and community -based process that will include development of a land use plan for the Foundation/SOFA area; development of implementing ordinances and other regulations as appropriate; preparacion of appropriate environmental review documents; and review of and action on the land use plan, ordinance, regulations and environmental documents by the Planning Commission and City Council. Foundation shall be entitled to active participation in City's planning process, and City encourages Foundation's active participation in this planning process, including securing any necessary outside assistance to help make the products of the process an acceptable basis for reuse of the Property. (b) Commencement of Process. The planning process will commence upon written notice by either party to the other ("Notice of Commencement") in accordance with the process described in paragraph (c) of this Section. It shall begin no later than eighteen (18) months after the effective date of the Urban Jane Approvals and may commence earlier at the request of the Foundation. (c) Financia]. Contribution },y Foundation. The Foundation shall pay sixty-six percent (66%), up to a maximum of Two Hundred Thousand Dollars ($200,000), of the costs of the Planning 7 960109 lac 00E0163 • • Consultants for the Foundation/SOFA planning process. Payment shall be made as follows: Seventy-five Thousand Dollars ($75,000) shall be paid to City within thirty (30) days after written notice by City to Foundation that the planning process will be commenced, or within thirty (30) days of Foundation's request for commencement of the planning process, whichever date is earlier. The remaining sum due, which shall be no greater than One Hundred Twenty -Five Thousand Dollars ($125,000), shall be paid upon sale by Foundation of any of the properties comprising the Downtown Site. Foundation agrees to recordation of an appropriate instrument evidencing this obligation. The costs to be reimbursed by Foundation under this provision shall not include City employee time. 11. Application for New Downtown Site Land Llge Approvals. Following conclusion of the planning process described in Section 10 above, Foundation may apply for the land use approvals and/or permits deemed necessary in its discretion to authorize redevelopment of the Downtown Site. City promptly shall conduct all CEQA compliance procedures and other analysis necessary in City's discretion to consider Foundation's Downtown Site redevelopmnt proposals. The parties intend hereby that the planning process outlined above and the process for City's consideration of new Downtown Site land use approvals and permits shall not be delayed or deferred pending City's consideration of citywide Comprehensive Plan amendments, but instead that Foundation's requested new Downtown Site land use approvals will be considered on as expeditious a schedule as is practicable, and that the new approvals will be consistent with all applicable current and Comprehensive Plan goals and policies. 12. Extraordinary Processing Fee. Before issuance of any building permits for the Urban Lane Site, Foundation shall pay to City an extraordinary processing fee to compensate City for additional costs incurred as a result of the negotiation and processing of this Agreement. Such fee shall include all staff, consultant, City Attorney, or other time and material charges in excess of those charges estimated in City's usual processing fees, or otherwise reimbursed by Foundation to City, in an amount not to exceed $15,000. 13. Termination of Development Agreement; Survival of Terms. As of the Termination Date, the provisions of Sections 5, 6, and 7 of the Agreement shall terminate and be of no further force and effect, with the exception of Section 6 (d) regarding lease of the Channing/Ramona property for child care purposes, which Section is hereby amended to provide that the date by which the subject lease must be executed and effective shall be the date of City issuance of the first building permit in furtherance of and consistent with the Urban Lane Approvals. All other terms and provisions of the Agreement, as amended herein, shall remain in effect until (i) the 8 960109 lac 0080168 * • effective date of the rezoning of the Downtown Site, or (ii) the end of the thirty-third (33rd) month following the date of Notice of Commencement, whichever first occurs, at which time the Agreement shall terminate. 14. Miscellaneous. (a) Authority to Execute. The person or persons executing this Agreement warrant and represent that they have the authority to bind Foundation to the performance of its obligations hereunder. (b) Exhibits. The following exhibits to which reference is made in this Agreement are deemed incorporated herein in their entirety: Exhibit A -- Description of Downtown Site Exhibit B -- Description of Urban Lane Site IN WITNESS WHEREOF, this Amendment. has been executed by the parties as of the clay and year first above written. ATTEST: CITY OF PALO ALTO City Clerk Mayor APPROVED AS TO FORK: Senior Asst. City Attorney APPROVED: City Manager APPROVED AS TO CONTENT: Director of Planning and Community Environment PALO ALTO MEDICAL FOUNDATION FOR HEALTH CARE, RESEARCH AND EDUCATION By: Its: By: Its: 9 960109 l.c 00$016$ EXHIBIT A Description of Property Palo Alto Medical Foundation Downtown Site All ttz teal property located in the City of Palo Alto, California, and more particularly described ambit A• l to the Agreement between Palo Alto Medical Foundation for Health Care, Research, and Elation and the City of Palo Alto, filed for record in the Office of the Sarnia Cora County Recorder on November 4, 1991. 10 • EXHIBIT E Desmptiion Lands a1 P Alto Medical Foundation for Health Care, Research and Education and Santa:m d al. to be Rezoned from CS to PF All that certain real property Sdune the City of Palo Alto, County of Santa Clara, State of California, being all of Parcel 1 and Parcel 2 as shown on that certain Record of Survey recorded in Book 326 of Maps at Page 8 and all of Parcel A as shown on ghat certain Parcel Map recorded in Book 387 of Maps at Pages 51 and 52, and all of Lot 10 of the "Greer Homestead" recorded in Book "L" of Maps at Page 79. and a portion of the 32-1/2 acre tract as designated on the map entitled "Plat of a Tract of Land on the San Francisquito Rangy, Owned by Captain John Greer" which map was recorded March 14, 1878 in Book "A" of Maps at Page 23. Santa Clara County Records and being more particularly described as follows: BEGINNING at the most Southerly corner of the hereinabove described Parcel of 1 of the Record of Survey recorded in Book 326 of Maps at Page 8; thence leaving said POINT OF BEGINNING along the general Southwesterly line of said Parcel 1 and its Northwesterly prolongation North 41 deg. 23 min. 44 sec. West 394.01 feet; thence leaving said prolongation North 48 deg. 36 min. 15 sec. East 71.80 feet; thence North 7; deg. 53 rain. 16 sec. East 46.88 feet; thence South 41 deg. 23 min. 44 sec. East 5.84 feet; thence North 71 deg. 53 min. 16 sec. East 25.00 feet; North 41 deg. 23 min. 44 sec. West 80.90 feet to a point on the Southeasterly line of a 40 foot right of way (known as Wells Avenue) as said right of way is described in the deed from Thomas O'Brine, et ux. to W. O. Horobin, dated March 1, 1920, recorded March 10, 1920, Book 509 of Deeds, Page 551. Santa Clara County Records; thence along said Southeasterly line and its Northeasreriy prolongation North 71 deg. 52 min. 38 sec. East 326.48 feet to a point on the general Westerly line of that certain parcel of land described in the Grant Deed to Palo Alto Medical Foundation for Health Care, Research and Education recorded on March 11, 1993 in Recorders Series /11811255, Santa Clara County Records; thence along the general Westerly and Northerly line of said Parcel North 18 deg. 06 min. 44 sec. West 187.65 feet and North 71 deg. 53 min. 16 sec. East 117.79 feet to a point on the Southwesterly line of the right of way of the Southern Pacific Company, thence along said right of way South 54 deg. 40 min. 48 sec. Fast 418.23 feet and South 50 deg. 38 min. 44 sec. East 172.10 feet to the most Northerly corner of Parcel 4 as shown on said Record of Survey, thence along the general Northeasterly line of said Parcel 4 from a tangent bearing of South 73 deg. 36 min. 16 sec. West along a curve to the right with a radius of 458.59 feet through a central angle of 10 deg. 20 min. 42 sec. for an arc length of 82.80 feet and South 50 deg. 38 min. 44 sec. East 134.24 feet to the most Easterly corner of said Parcel 4; thence along the general Southerly line of said Parcel 4 and along the general Southerly line of said Partxl 1 South 71 deg. 53 min. 16 sec. West 384.76 feet to the most Northerly corner of Lot 10 of the hereinabove described "Greer Homestead"; thence leaving said general Southerly line of Parcel 1 along the Northeasterly line of saifi Lot 10 South 18 deg. 06 min. 44 sec. East 12..19 feet to the Southeasterly corner of said Lot 10, said Southeasterly corner lying in the general Northerly line of Encina Avenue; thence along the general Southerly line of said Lot 10 South 71 deg. 53 min. 16 sec. West 50.00 feet to the Southwesterly corner of said Lot 10; thence along the general Westerly line of said Lot 10 North 18 deg. 06 min. 44 sec. West 121.19 feet to the Northwesterly corner thereof; said Northwesterly corner lying in the general Southerly line of said Parcel 1 of said Record of Survey, thence along said general Southerly line South 71 deg. 53 thin. 16 sec. West 439.48 feet to the POINT OF BEGINNING. Containing 9.15 acres of land more or less. 11 960215 tae 00E0214 • OCRTIFICATZ OF ACKNOWLZDOMMT (Civil Code S 1189) STATE OF ) COUNTY OF ) On before me, , a notary public in and for said County, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) , or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. 12 960109 lac 0080168 1 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF ) COUNTY OF ) On , before me, , a notary public in and for said County, personally appeared , personally 'mown to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the sate in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. MI5 DOCUMENT IS CERTIFIFr TO BE AN QpptkA`:CS DULY PASSED _ . fHE COUNCIL r,"}t ' C! TY C i- .�h L"":��O11}}//jyyyALTO yy,��(��;L i O A N D C4,11..E 1Ei Na�J'i; �Q AIL ��;�+^L' ON I _(WITHIN 15 DAYS OF i 1:: PASS' i "I cr:rtfy(or din!ere) under penalty of perury tci the foregoing is true nd con S:/44 ate & Place Sip awe 13 960109lac 0080)68