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HomeMy WebLinkAbout2018-07-30 Ordinance 5446DocuSign Envelope ID: 15E8405E-72C2-4428-9BOO-OB6FD3DD5B41 Ordinance No. 5446 Ordinance of the Council of the City of Palo Alto Adopting the Provisions of an Initiative Measure Amending the Comprehensive Plan 2030 and Title 18 (Zoning) of the Palo Alto Municipal Code to Reduce the Maximum Allowable New Office and R&D Development Citywide from 1.7 Million Square Feet to 850,000 Square Feet, Subject to Specified Exemptions RECITALS A. On May 22, 2018, the proponents of the initiative to reduce the citywide cumulative office/R&D development cap by fifty percent from 1.7 million square feet to 850,000 square feet submitted petition signatures to the Office of the City Clerk, which signatures the City Clerk transmitted to the County of Santa Clara Registrar of Voters for verification in accordance with Elections Code Section 9115. B. On June 3, 2018, the Registrar of Voters certified that the initiative petition qualified with the sufficient number of valid signatures with a total of 2,430 which is greater than 6% of the registered voters in the City of Palo Alto at the last general municipal election for the City. C. On June 11, 2018, the City Council accepted the Certificate of Sufficiency of the Initiative Petition issued by the Registrar of Voters and directed staff to provide a report on the potential effects of the initiative. D. On July 30, 2018, the City Council accepted the report. E. The Palo Alto City Charter, Article VI, Section 2 authorizes the City Council to adopt without alteration the proposed initiative ordinance to amend the Comprehensive Plan and Title 18 of the Palo Alto Municipal Code. NOW, THEREFORE, the Council of the City of Palo Alto ORDAINS as follows: SECTION 1. The text of the proposed initiative ordinance amending the Comprehensive Plan and Title 18 of the Palo Alto Municipal Code to reduce the cap on the maximum allowable new office/R&D development citywide by fifty percent from 1.7 million square feet to 850,000 square feet, subject to specified exemptions, is set forth in full in Exhibit A attached hereto and incorporated herein by this reference. II II SL/2018 Elections/Office Cap Initiative/ORD Adopting Office Cap Initiative July 2018 DocuSign Envelope ID: 15E8405E-72C2-4428-9BOO-OB6FD3DD5B41 Exhibit A PALO ALTO REDUCED OFFICEIR&D DEVELOPMENT CAP INITIATIVE The people of the City of Palo Alto do ordain as follows: SECTION 1: PURPOSE, EFFECT, AND FINDINGS A. Purpose: The purpose of the Palo Alto Reduced Office/R&D Development Cap Initiative ("Initiative") is to return office/R&D growth throughout the City to its long-tenn historical trend, by (1) reducing the current cap on new office and R&D (research and development) development by fifty percent, with specified exemptions, and (2) requiring voter approval to increase the Initiative's cap or to add further exemptions to the cap. The Initiative is essential to preserve livability, an innovative economy, and the quality of life in the City of Palo Alto. B. Effect: This Initiative amends the City of Palo Alto Comprehensive Plan 2030 (the '12030 Comprehensive Plan") to reduce the citywide cap of 1. 7 million new square feet of office/R.&D development by fifty percent to 850,000 square feet. Medical office uses in the Stanford University Medical Center vicinity, and other medical, governmental, and institutional uses, continue to be exempted from the cap; no other exemptions ere allowed. The cap does not apply to new housing in the City. · ·This Initiative also amends the Palo Alto Municipal Code to include the same requirement of en 8501000 square-foot cap. The Charter of the City of Palo Alto provides that any ordinance adopted by the electors cannot be repealed or amended, except by a vote of the people, unless the ordinance provides otherwise. Consistent with the City Charter, this Initiative specifics that (1) through December 31, 2030, voter approval is required to increase the Initiative's cap or to add further exemptions to the cap, but (2) the City Council may reduce the Initiative's cap without a vote of the people. C. Fiodlnas: The people of the City of Palo Alto find that this Initiative promotes and protects the health, safety, welfare, and quality oflife of City re!!idents, based on the following specific findings: Page 1 of8 DocuSign Envelope ID: 15E8405E-72C2-4428-9BOO-OB6FD3005B41 1. Palo Alto '1 Current Cap on New Office/R&D Development Is Excessive: From 1989 to 2014, Palo Alto added approximately l.S million square feet of non-residential development. as monitored by the City. The recently adopted 2030 Comprehensive Plan, which is the primary tool to guide future development in the CityJ would allow an additional 1. 7 million square feet of office/Rc'{dl development. This Initiative reduces that amount by setting a new eumulative cap on new office/R&D development that could occur in tJ;u: City. The Initiative's cumulative cap of850,000 new square feet is in line with the average annual square feet of non-residential development that has occurred since th~ City's monitoring began. Importantly, the Initiative does not prevent the City from adopting or enforcing annual caps on new office/R&D development-provided that the cumulative total cap is not exceeded. 2. Palo Alto Cannot Tolerate More Traffic: According to the City's own study, there are already about three jobs in the City for every employed resident As a result, the City has one of the highest commuter ratios in the nation for cities with populations of more than fifty thousand. Excessive new oftice/R.&D development in Palo Alto-as the recently adopted 2030 Comprehensive Plan allows-will lead to even more jobs. and thus exacerbate traffic congestion and parking shortages in the City. Two-thirds of City residents cite these issues as major concerns. 3. Housing Prices Are AJready Too lligh: Lack of affordable housing is another major concern for City residents. And one of the primary causes of rising home prices is rapid business expansion with the associated escalation of land prices. Palo Alto cannot stand to have its affordable housing crisis deepened by the rapid growth in officelR.&D development and jobs that could occur under the recently adopted 2030 Comprehensive Plan. 4. Economic Prosperity Could Be Threatened by Excessive Growth. One marker of Palo Alto's success as a center of Silicon Valley's innovation economy has been the extraordinary mobility of its professional workers. The 2030 Comprehensive Plan recognizes that "employers, businesses and neighborhoods share many values and concerns, including traffic and puking issues and preserving ~alo Alto's livability." Placipg a modeta!e cumulative limit on office/R&D growth will support the City's unique mobility oflocal businesses and workers, while at the same time allowing a reasonable amount of growth over the period of the 2030 Comprehensive Plan. SECTION 2: CITY OF PALO ALTO 2030 COMPREHENSIVE PLAN AMENDMENTS This Initiative hereby emends the Land Use and Community Design Element of die 2030 Comprehensive Plan, as emended through April 20, 2018 (''Submittal Date"). Text to be inserted in the 2030 Comprehensive Plan is indicated in bold type, and text to be deleted is indicated in llk=iketmeugll type. Noo-bolded text cwrently appears in the 2030 Comprehensive Plan. Except as expressly provided below, the language adopted and readopted in the following amendments may be repealed or emended (as by, for example., increasing the cap or by adding Pagel of8 DocuSign Envelope ID: 15E8405E-72C2-4428-9BOO-OB6FD3005841 additional exemptions) only by a vote of the people through December 311 2030. A. Policy L-1.10 on page 371 under the heading "GROWTH MANAGEMENT AND MONITORING," is hereby readopted with the following changes: Maialais a eity¥.•ide ea:p ef 1.7 ~ea Cap new square feet of oftice/R&D development citywide at 850,000 square feet, exempting medical office uses in the Stanford University Medical Center (SUMC) vicinity. Use January 11 2015 as the baseline and monitor development towards the cap on an annual basis. &.fllihe IHlB&8l me&HeriBg ta assess the effeaaveaess ef develepmeet HEtuiAHMB!s IHHl delel'IBie.e whether the aa:p asd the d&Velepmeat fftfYiNmeats shellld he adjusted. Continue to exempt medical, governmental and institutional uses from the cap on office/R&D development; no other exemptions are allowed. Through December 31, 2030, this Policy L-1.10 may not be amended or repealed except by a vote of the peqple, provided, however, that the Palo Alto City Council may reduce the citywide cap of 850,000 new square feet of office/R&D development without a vote of the people. B. Program Ll.10.l on page 37, following Policy L-1.10, is deleted in its entirety as follows: R:ee\~ the e\llB\llatWe aap whee the B:IBBUS:t ef aew effie~ &sP SEJU&fe feet&ge emitted sitlee Ieuary 11 2QU N&ehes (;:J pereeftl efthe &llerw·ed sttH&fe feet&ge1 er 11139.(IQQ &EJU&Fe flat Casellff8e~ eeesidenemeval er petealial eh&Rges te die eap ellter te die ameHBt ef additiee&I develepmeBf petmited hy lfte City's menisg eAlinanee. SECTION 3~ 2030 COMPREHENSIVE PLAN CONFORMING AMENDMENTS In light of the 2030 Comprehensive Plan amendments set forth above in Secti~n 2 of this Initiative, the 2030 Comprehensive Plan is hereby further amended as set forth below in order to promote internal consistency among the ~ous provisions of the 2030 Comprehensive Plan. Text to be inserted in the 2030 Comprehensive Plan is indicated in bold type. and text to be deleted is indicated in alftlEetlnagh type. Noo.-bolded text cuaently appears in the 2030 Comprehensive Plan and is not changed or readopted by this Initiitfve. The language adopted in the following amendments may be further amended as appropriate without a vote of the people, during the course of further updates and revisions to the 2030 Comprehensive PIBDt provided that such amendments do not conflict with Policy L-1.10. A. The text on page 20, under the heading .. OROwrH MANAGEMENT," is amended as follows: The pace of non-residential growth and developm~t in Palo ,Alto has been moderated by a citywide cap on non-residential dCvelopmcnt first acjopted by the Cicy Council in 1989. Base& ea the rlemell&tlaletl and eeatimtewl atrength efihe ·~·a 111eaelB:)', Bl!ld Neeat ehaeges iathe appreaea te gmwtll maeagemeat tlueYg1leet 6.iilemia; t'this Plan p~ents an updated cumulative growth management and monitoring system, as approved by the voters in the Pala A.Ila Ruuced OJJicUR.&D DeHlapnrent Cap Pagel of8 DocuSign Envelope ID: 15E8405E-72C2-4428-9BOO-OB6FD3DDSB41 Initiatl11e. This system moderates the overall amount of new office/R&D development &Rd meeitefS if5 impaee en to enhance Palo Alto's livability. This updated approach uses 2015 as the baseline froqi which to monito~ncw development and establishes a cumulative, citywide cap on office/R~ uses, including conversions of exi!tigg square footage to officO'R.&D space. k else esmt.lishes elear pidaeee te address r;.i.ftat the Ci~ sheuld de as the eap is appRHlehetl B. Program B 1.1. l on page 196 is amended as follows: Implement and periodically amend an Economic Development Policy to guide business development in the City In a manner consistent with Polley L-1.10. > • C. Program B7.2. l on page 200 is amended as follows: Review policies and regulations guiding development at Stanford Research Parle and revise them as needed to allow improved responsiveness to changing market conditions in a manner consistent with PoUcyL-1.10. D. The following rows of the Implementation Table on pages 214, 266, and 268 are amended as follows: Program# Program Text Lead Priority Anticipated Department Level of or Agency (SIM!UrP/R)' Effort (S/SS/SSS) ~I.IQ.I Keerraluafe the etHBYla&r1e eap Planeieg& M ' whee lite ameum et:aew GelBIBllRity effieea<B i!!D &E(Ullfe feetage ieYif8emem emklecl aiaee iJ1m1my I, ~QI§ Depal4meet R1Beltee 6~ 1n1RJeBt e~ the alle\\1ed 5'l1l8fe feemge; eF I, U9,QOO &E(Ullfe feet:i Geeet:HHHll)' eeft5ideF reme111&1 e• peleetill eh&Bges te dte eap BR~f te d\e 111&9~ ef adclilieaal dewlepmem peRBilted hy '1le Si~s eenieg efdieanee. B.1.1 Implement and periodically amend Office of R $ an Economic Development Policy Economic to guide bas~ess development in Development the City In a manner consistent with Polley L-1.10. - Page4 of8 I DocuSign Envelope ID: 15E8405E-72C2-4428-9BOO-OB6FD3DD5B41 B7.2.l Review policies and regulations Planning& M SS guiding development at Stanford Community Research Parle and revise them as EnvirOnmcnt needed to allow improved Department responsiveness to changing market conditions In a manner consistent ' with Polley L-1.10. I - SECTION 4: PALO ALTO MUNICIPAL CODE AMENDMENTS This Initiative hereby amends the Palo Alto Municipal Code ("Municipal Code"). Text to be inserted in the Municipal Code is indicated in bold type. Except as expressly provided below, the language adopted in the following amendments may be repealed or amended only by a vote of the people through December 31, 2030. A. A new Section 18.40.200 (Growth Management) is added to Chapter 18.40 (General Standards) ofTitle 18 (Zoning) of the Municipal Code to read as follows: 18.40.200 Growth Mana1ement This 11eclion 18.40.200 adopts the citywide cap on office/R&D development that appears In Polley L-1.10 of the City of Palo Alto Comprehensive Plan 2030 pursuant to the Palo .Alto Red11ced Office/R.&D Dnelap•nent Cap lnitiatirle: Cap new square feet of office/R&D development citywide at 850,000 square feet, exempting medical office uses In the Stanford University Medical Center (SUMC) vicinity. Use January 1, 2015 as the baseUae and monitor development towards the cap on an. annual basis. Continue to exempt medical, governmental and Institutional uses from the cap on office/R&D development; no other exemptions are allowed. Notwithstanding anything in this Municipal Code or any other City ordinance or resolution to the contrary, the City shall not approve any non-exempt offlce/R&D development that would exceed this cap, or add further exemptions to the cap, except to the extent permitted by the Palo Alto Red11ced Ofjice/R&D Development Cap Inltialive. Through December 31, 2030, thJs Section 18.40.200 may not be amended or repealed except by a vote of the people, provided, however, that the Palo Alto City Coundl may reduce the citywide cap of 850,000 new square feet of offtce/R&D development without a vote of the peo_ple. SECTIONS: EXEMPTIONS FOR CERTAIN PROJECTS A. This Initiatiye shall not apply to or prohl'bit any development project or ongoing activity that bas obtained, as of the Effective Date of this Initiative. a vested right pursuant to State law. Page5of8 DocuSign Envelope ID: 15E8405E-72C2-4428-9800-086FD3DD5841 B. The provisions of this Initiative shall not apply to the~ but only to the extent, that they would violate the Constitution or laws of the United States or the State of California. C. The City Council is authorized to grant exceptions to the voter approval requirements in Policy L-1.10 when: necessary to comply with state or federal law governing the provision of housing, including but not limited to affordable housing reciuirements. This exception applies only if the City Council first makes each of the following findings based on substantial evidence in the record with respect to a proposm mixed-use housing project including officeJR&D uses that are subject to the cap set by this Palo Alto Reduced Office/R&D Development Cap lnitiatiye: (1) a specific provision of state or federal law n;quires the City to accommod~te the housing ~at will be permitted by the exception; (2) the exception permits no more office/R&D development than that necessary to comply with the specific provision of state or federal law; and (3) it is not feasible for the City to require modifications to the office/R&D component of the proposed project in a way that would allow the City to satisfy the specific state or federal law without exceeding the cap set by this Palo Alto Reduced Office/R.&D Development Cap Jnjtiative. SECTION 6: IMPLEMENTATION A. Effective Date: ''Effective Date" means the date that the Palo Alto Reduced Office/R&D Development Cap Initiative became effective. Upon the Effective Date of this Initiative, the provisions of Section 4 are hereby inserted in the City of Palo Alto Municipal Code as an amendment thereof, and the provisions of Sections 2 and 3 arc hereby inserted in the City of Palo Alto Comprehensive Plan 2030, as an amendment thereof; except that if state or local law limits the number of CompR:hcnsive Plan amendments in any given year and those amendments have already been utilized in the year in which the Initiative becomes effective, this 2030 Compxehensive Plan amendment shall be the first amendment inserted in the City of Palo Alto Comprehensive Plan 2030 on January 1 of the following year. Upon the Effective Date of this Initiative, any provisions of the City of Palo Alto Zoning Code or any other City of Palo Alto ordiDance or resolution that are inconsistent with the 2030 Comprehensive Plan and Municipal Code amendments adopted by this Initiative shall not be enforced in a manner inconsistent with this Initiative. B. Interim Amendments: The City of Palo Alto Comprehensive Plan 2030 in effect on the Submittal Date and the 2030 Comprehensive Plan as amended by this Initiative comprise an integrated, internally consistent, and compatible statement of policies for the City of Palo Alto. To C1lSUR that nothing in this Initiative. would prevent the 2030 Comprehensive Plan from being an integrated, interna11y consistent. and compatible statement of the policies of the City, and to ensure that the actions of the voters in enacting this Initiative are given effect, any amendment to the 2030 Comprehensive Plan that is adopted between the SubmittaJ Date and the date that the 2030 Comprehensive Plan is amended by this Initiative shall. to the extent that such interim-enacted provision is inconsistent with the 2030 Comprehcosive Plan provisions readopted and amended by this Initiative, be imend~ as soon as possible to ensure consistency between the Page 6 ofl DocuSign Envelope ID: 15E8405E-72C2-4428-9BOO-OB6FD3DD5B41 • provisions readopted and amended by ~s Initiative and othet; proyisions of the 2030 Comprehensive Plan. Likewise, any amendment to the Palo Alto Municipal Code that is adopted between the Submittal Date and the date that the Mwilcipal Code is amended by this Initiative shall, to the extent that such interim-enacted provision "is inconsistent with the Municipal Code provision adopted by this Initiative, be amended as soon as possible to ensure consistency between the! p~ions adopted by this Initiative and other provisions of the Municipal Code. . C. Other City Plan, Ordinances, and Polides: The City of Palo Alto is hereby authorized and directed to am~ the City of Palo Alto Comprehensive Plan 2030, all area plans, specific plans, the City of Palo Alto Zoning Code, Land Use Map, and Zoning Map, and other ordinances and policies affected by this Initiative as soon as possible as necessary to ensure consistency between the provisions adopted in this Initiative and other sections of the 2030 Comprehensive Plan. all area plans, specific plans, the Zoning Code, the Zon.inj Map, ana other City ordinances and policies. D. Reorganization: The 2030 Comprehensive Plan and the Municipal Code may be reorganized or readopted in different format, and individual provisions may be renumbered or reordered, in the course of ongoing updates of the 2030 Comprehensive Plan and the Municipal Code, provided that the provisions of Section 2 of this Initiative shall remain in the 2030 Comprehensive Plan and the provisions of Section 4 of this Initiative shall remain in the Municipal Code, unless earlier repealed or amended by the voters of the City. E. Implementing Ordinances: The City Council is authorized, after a duly noticed public hearing, to adopt implementing ordinances, guidelines, rules, and/or regulations. as necessary, to further the purposes ofthis Initiative. F. Enforcement and Defense of Initiative: The City Council shall take all steps,reasonably necess&I)' to enforce this Initiative and to defend it against any challenge to its validity. SECTION 7: EFFECT OF COMPETING OR ALTERNATIVE MEAsURE ON THE SAME BALLOT This Initiative sets a citywide cap of 850,000 new square feet of office/R&D development using January 1, 201 S as the baseline, with specified exemptions, and requires voter approval to increase or repeal the cap or add further exemptions to the cap through December 311 2030. By voting for this Initiative, the voters expressly declare their intent that any other measure that appears on the s~e ballot as this Initiative and addresses a citywide cap on offi~D development, shall be deemed to conflict with this Initiative. Because of this conflict, if this Initiative and any such other City of Palo Alto measure receive a majority of votes by the voters voting thereon at the same election, then, to the extent allowed by state law and any legally yalid provisions of the City's City Charter, the measure receiving the most votes in favor shall prevail and no provision of the other measure shall take effect. For the purposes of this Section 7, any other voter-Sponsored measure that appeal's on the same ballot as this Initiative and pwpQrts to amend any provision of this Initiative shall be deemed to directly conflict with this entize Initiative. Pagc:7 of8