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HomeMy WebLinkAbout2015-10-26 Ordinance 5357DocuSign Envelope ID: 058EA42C-633E-4A 13-9788-084 711 CF4A49 Ordinance No. 5357 Interim Ordinance of the Council of the City of Palo Alto Adding Section 18.85.200 (Annual Office Limit) to Chapter 18.85 entitled "Interim Zoning Ordinances" Imposing an Office Annual Limit of 50,000 Net New Square Feet in Designated Areas of City FINDINGS A. The City of Palo Alto has long been considered the birth place of Silicon Valley. With its proximity to Stanford University, its international reputation, its deep ties to technology firms, its highly rated public school system and its ample public parks, open space and community centers, Palo Alto continues to serve as a hub for technology-based business. B. Palo Alto is considered one of Silicon Valley's most desirable office market~_,_ _________ _ According to one study Class A office rates have climbed 49 percent since the start of 2010. The same study reported Class B office space increasing by 114.4% since 2010. C. In particular, average commercial rental rates have gone up significantly from 2013 to 2015. In 2013 the average monthly rental rate citywide for office was $4.57 per square foot. That rate increased to $5.12 in 2015. D. As a result, the City has seen a steady increase of new Office and Research and Development (R&D) projects. According to data submitted by the City to support the Valley Transportation Authority's Congestion Management Plan (CMP), since 2001, the City has added 234,002 of net new square feet of office/R& D development in the California Avenue area; 315,586 in the downtown area, and 46,210 in the El Camino Real corridor. E. While this new development is consistent with the City's zoning ordinance and its Comprehensive Plan, the rate of change has been faster than anticipated, resulting in changes in the character of the City's commercial districts. The changes have also resulted in additional parking demand, traffic, and greenhouse gas emissions, and negatively impact the City's jobs/housing ratio. F. Based on the CMP data, there have been six years since 2001 in which more than 50,000 net new square feet of Office/R&D development have been entitled in these districts combined, and these six years include the last two (fiscal years 2014 and 2015). G. Record high monthly rental rates for office space and low vacancy rates suggest that the rapid pace of development is likely to continue, putting pressure on sites that are not currently developed to their maximum potential, and contributing to a feeling in the community that the character of the City's commercial districts are changing too fast. 151001 cs 0131471 1 Rev. October 1, 2015 DocuSign Envelope 10: 05BEA42C-633E-4A 13-9788-084 711 CF4A49 The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. A new Section 18.85.200 {Annual Office Limit) is added to Chapter 18.85 entitled "Interim Zoning Ordinances" to the Palo Alto Municipal Code to read as follows: "18.85.200 Annual Office Limit 18.85.201 Definitions. For the purposes of this Ordinance, the following terms shall have the definitions below: (a) Office Annual Limit Area shall include the area shown in Exhibit A, comprising the commercial districts of Downtown, the California Avenue Area, and the El Camino Real corridor. (b) Office Annual Limit Land Uses shall include any of the following uses in the Office Annual Limit Area: 1. Research and Development as defined in Section 18.04.030(123); 2. Administrative Office Services as defined in Section 18.040.030(6); 3. General Business Office as defined in Section 18.040.030(61); 4. Medical Office greater than 5,000 net new square feet as defined in Section 18.04.030(95 ); and 5. Professional Office as defined in Section 18.04.030(116). (c) Qualifying Application shall mean an application for a permit or other planning entitlement for an Office Annual Limit Land Use which (1) has been determined to be complete, (2) has completed the necessary analysis under the California Environmental Quality Act and (3) has been reviewed by all required commissions and/or Planning Director, as applicable. 18.85.202 Office Annual Limit. During the pendency of this Ordinance no more than 50,000 net new square feet of Office Annual Limit Land Uses per fiscal year shall be approved by the City in the Office Annual Limit Area. (a) For purposes of this Ordinance, the fiscal year shall be defined as July 1 to June 30. (b)The 50,000 square foot limit imposed by this section shall not apply to exempt projects as defined in 18.85.203 and such projects shall not be counted towards this limit. (c) This restriction shall be in addition to any other applicable growth restriction including but not limited to Comprehensive Plan Policy L-8 and Section 18.18.040 of the Zoning Code. In the event multiple policies apply to a project, the policy most restrictive of growth shall apply. 18.85.203 Exemptions. The following shall be exempt from this Ordinance: 151103 cs 0131471 2 Rev. October 1, 2015 DocuSign Envelope ID: 058EA42C-633E-4A 13-9788-084711 CF4A49 (a) Small Projects. Projects containing less than 2,000 net new square feet or less of Office Annual Limit Land Uses and accessory office space that is incidental to and customarily associated with a principal use or facility are exempt from the Office Annual Limit. (b) Small Medical Office Projects. Projects containing 5,000 net new square feet or less of Medical Office are exempt from the Development Cap. (c) Self-Mitigating Projects. Projects that would both: (1) provide rental housing for more workers than would be employed in the project; and (2) provide substantial transportation demand management strategies (individually or in cooperation with other projects or programs) to improve the current parking and traffic conditions. (d) Pipeline Projects. Projects which have been approved, or which are considered "pipeline projects" as follows: 1. Projects which obtained a planning entitlement for an Office Annual Limit Land Use prior to the effective date of this ordinance. 2. Projects which are the subject of a planning entitlement application that was submitted to the City in 2013 or 2014 and deemed complete by the City on or before March 31, 2015. (e) City Office Space. New office space used by the City of Palo Alto. 18.85 .205 Economic Hardship Waiver or Adjustment. An applicant may request that the requirements of this Ordinance be adjusted or waived based on a showing that applying the requirements of this Ordinance would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property. The applicant shall bear the burden of presenting evidence to support a waiver or modification request under this Section and shall set forth in detail the factual and legal basis for the claim, including all supporting technical documentation. Any such request under this section shall be submitted to the Planning and Community Development Director together with an economic analysis or other supporting documentation and shall be acted upon by the City Council. 18.85.206 Procedures for Reviewing Qualifying Applications. The following additional processing and approval requirements shall apply to Office Annual Limit Land Uses: (a) No Qualifying Application for an Office Annual Limit Land Use shall be acted upon by the Director or by the City Council between July 1 and March 31 of the following year. (b) If the combined square footage proposed by all Qualifying Applications that are 151103 cs 0131471 3 Rev. October 1, 2015 DocuSign Envelope ID: 058EA42C-633E-4A 13-9788-084 711 CF4A49 pending on March 31 would not exceed the annual limit, the Qualifying Applications shall be acted upon using the Zoning Code's usual process immediately following March 31. (c) If the combined square footage proposed by all Qualifying Applications would exceed the annual limit, the Director shall rank all Qualifying Applications based on scoring criteria set forth in Section 18.85.207 and make a recommendation to the Council. The Council may accept the Director's recommendation or reevaluate the ranking based on the scoring criteria. Based on their review, the Council shall approve in ranked order one or more Qualifying Applications to achieve a maximum of 50,000 net new square feet. The Council may approve applications as proposed and recommended, and may require modifications of any project to reduce the proposed square footage in order to stay within the 50,000 square feet Office Annual Limit. The Council's action on all Qualifying Applications shall be made before the end of the fiscal year on June 30. (d) Any application which is subject to City Council evaluation and action pursuant to Section (c) above and which was not approved by the City Council shall be denied unless, at the request of the applicant, it is rolled over to the next fiscal year for processing in accordance with the terms of this Ordinance. Further, in lieu of modifications to the project's Office Annual Limit Land Use, the applicant can elect to roll over the application to the next fiscal year. The City and applicant may agree to extend any applicable processing time periods to effectuate this provision. 18.85.207 Selection Criteria. The City Council shall evaluate applications subject to the annual limit using the following criteria based upon weighting set forth in administrative rules or procedures which shall provide that projects meeting criterion (i) shall be selected first and weighted against each other: Impacts (a) The density of the development in the context of underlying zoning and the site surroundings; and (b) The ability to avoid or address potential impacts on traffic and parking; and (c) The quality of design, including the attention to human scale where the building(s) meet the street, the compatibility with surroundings, and the overall architectural quality; and Environmental Quality (d) Environmental quality; and Public Benefit (e) The value to the community of public benefits offered; and 151103 cs 0131471 4 Rev. October 1, 2015 DocuSign Envelope ID: 05BEA42C-633E-4A13-978B-OB4711 CF4A49 (f) Mixed use projects including substantial housing; and (g) Mixed use projects including retail; and (h) Mixed use projects that provide space for cultural amenities such as but not limited to art galleries and studios; and Pipeline Projects (i) Any entitlement application involving an Office Annual Limit Land Use deemed complete by the City between March 31, 2015 and June 15, 2015. 18.85 .208. The Director has the authority to adopt rules or procedures to implement the efficient and equitable implementation of this Ordinance." SECTION 2. Supersede. This Ordinance supersedes any provision of the Palo Alto Municipal Code inconsistent with the provisions of this Ordinance. SECTION 3. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable. SECTION 4. Effective Date. This ordinance shall be effective on the thirty-first date after the date of its adoption. This ordinance shall expire within two years of its effective date or upon Council adoption of the Comprehensive Plan Update, whichever occurs first. SECTION 5. CEQA. The City Council finds that this Ordinance falls under the California Environmental Quality Act (CEQA) exemption found in Title 14 California Code of Regulations II II II II II II II 151103 cs 0131471 5 Rev. October 1, 2015 DocuSign Envelope ID: 058EA42C-633E-4A 13-9788-084711 CF4A49 Section 15061(b)(3) because it is a temporary measure designed to slow the rate of change in some commercial areas of the City. INTRODUCED: September 21, 2015 PASSED: October 26, 2015 AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES : ABSTENTIONS: ABSENT: ATIEST: ~ City Clerk APPROVED AS TO FORM: ~~~1~ .. --------------- Senior Assistant City Attorney 151103 cs 0131471 6 APPROVED: Mayor [?:-;;!' 3QFZ2Q8F82064QB City Manager Director of Planning and Community Environment Rev. October 1, 2015 CJL Stanford Shopping Center Downtown/Unniversity Area UniversityStation PAMF Town & Country California AvenueArea Fry's Site Stanford Research Park El Camino RealCorridor El Camino RealCorridor El Camino RealCorridor Alma Plaza Stanford MedicalCenter CharlestonCenter R-1 San AntonioArea San AntonioArea Midtown West BayshoreArea EdgewoodPlaza East BayshoreArea MSC Embarcadero EastArea SOFA I SOFA II R-1 R-1 (7000) East MeadowCircle s J u n i p e r o S e r r a B o u l e v a r d P a g e M i l l R o ad R o a d E l C a m i n o R e a l S a n A n t o n i o A v e n u e C h a r l e s t o n R oa d O re g o n E x p r e s s w a y M i d d l e f i e l d R o a d U niversity Avenue y 1 0 1 A l m a S t r e e t El Camino Real n e R o a d F o o t h i l l E x p r e s Hi l l vi e w E a st B a y s h or e W e st B a y s h o r e Fabian S a n d Hill R oa d E m b a r c a d e r o R o a d Wallis Ct Donald Drive Encina Grande Drive Cereza Drive Los Robles Avenue Villa Vera Verdosa DriveCampana DriveSolana Drive Georgia Ave Ynigo Way Driscoll Ct ngArthur' Maybell Way Maybell Avenue Frandon Ct Florales Drive Georgia AvenueAmaranta Avenue Amaranta Ct Ki sCourt Terman Drive Baker Avenue Vista Avenue Wisteria Ln Pena Ct Coulombe Drive Cherry Oaks Pl Pomona Avenue Arastradero Road Abel Avenue Clemo Avenue Villa Real El Camino Way Curtner Avenue Ventura Avenue Maclane Emerson Street Ventura Ct Park Boulevard Magnolia Dr South El Camino Real Cypress Lane GlenbrookD Fairmede Avenue Arastradero Road Irven Court Los Palos CirLosPalosPl Maybell Avenue Alta Mesa Ave Kelly Way Lo s Palos Avenue Suzanne Drive Suzanne Drive rive El Camino Real Suzanne CtLorabelle Ct Mc Kellar Lane El Camino Way James Road Maclane Second Street Wilkie Way Camino Ct West Meadow Drive Thain Way Barclay CtVictoria Place Interdale Way West Charleston Road Tennessee LaneWilkie Wa y Carolina LaneTennessee Lane Park Boulevard Wilkie Ct Davenport Way Alma Street Roosev Monroe Drive Wilkie Way Whitclem Pl Whitclem 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Lane 66 La Selva Drive Grove Ct Stanford Avenue Lane 12 WLane 5 E Lasuen Street Serra Mall Escondido Road Olmsted Road Phillips Road Pistache Place Santa Ynez Street Lane B Lane C El Dorado Avenue Oak Creek Drive Clara Drive Bellview Dr Everett Avenue Homer Avenue La Calle SAN ANTONIO AVENUE Matadero Ave Colorado Pl Los Robles Avenue Timlott Ct Vista Villa PaloAltoAvenu e Lane La Donna Avenue Cass Way Kenneth Drive Fabian Way Page Mill Road Middlefield RoadChristine Drive Louis Road Charleston Road Bayshore Freeway Bayshore Freeway Chimalus Drive Hanover Street Community Lane Greenwood Avenue Harker Avenue Parkinson Avenue Avenue Maplewood Pl Mackay Drive Santa Teresa Lane Byron Street Varian Way Quail DrQuail Dr Paloma Dr Paloma Dr Trinity Ln Heron Wy Feather Ln Stanislaus LnTuolu mne Ln Plover Ln Sandpiper Ln Curlew Ln Mallard LnEgret Ln Klamath Ln Deodar StAlder LnSpruce Ln Rickey's Ln Juniper Way Rickey's Wy Rickey's Wy Rickey's Wy Juniper Lane Emerson Street Boronda Lane Tahoe Lane Lake Avenue Donner Lane Almanor Lane Fallen Leaf Street Berryes sa Street Cashel StNoble St Hettinger Ln Pratt Ln Emma Court Galvez Mall Federation Way Abrams Court Allardice Way Alta Road Alvarado CtAlvarado Row Angell Court Arguello Way Arguello Way Avery Mall Ayrshire Farm Lane Barnes CourtBonair Siding Bowdoin Street Cabrillo Avenue Cabrillo Avenue Campus Drive Campus Drive Campus Drive Campus Drive Campus DriveCampus Drive Campus Drive Campus Drive Campus Drive Campus Drive Campus Drive Campus DriveCampus Drive Campus Drive Capistrano Way Casanueva Place Cathcart Way Cedro Way Cedro Way Churchill Mall Comstock Circle Aboretum Road Aboretum Road Blackwelder Court Campus Drive Cathcart Way Constanzo Street Cooksey Lane Coronado Avenue Cottrell Way Cottrell Way Cowell Ln Crothers Way Dolores Street Dolores Street Dudley Lane Duena Street Electioneer Road Escondido Mall Escondido Mall Escondido Road Escondido Road Escondido Road Esplanada Way Estudillo Road Fremont Road Frenchmans Road Frenchmans Road Galvez Mall Alvarado Row Galvez Street Galvez Street Galvez Street Gerona Road Gerona Road El Escarpado Gerona Road Hoskins Court Hulme Court JenkinsCourt Junipero Serra Boulevard Junipero Serra Boulevard Junipero Serra Boulevard Junipero Serra Boulevard Knight Way Lagunita Drive Lane L L ane W Lasuen Mall Lasuen Mall Lasuen Mall Lasuen Street Lathrop Drive Lathrop Drive Lathrop Place Lathrop Drive Links RoadLinks Road Lomita Drive Lomita Drive Lomita Drive Lomita Drive Lomita DriveLomitaCourt Lom ita Mall Los Arboles Avenue Masters Mall Mayfield Avenue Mayfield Avenue Mayfield Avenue Mayfield Avenue Mayfield Avenue Mayfield Avenue McFarland Court Mears CourtMears Court Memorial Way Mirada Avenue Mirada Avenue Museum Way N Service Road N Tolman Ln Nelson Mall Nelson Road North-South Axis Oberlin St Comstock Circle Escondido Mall Olmsted Road Olmsted Road Olmsted Road Olmsted Road Olmsted Road Palm Drive Palm Drive Pampas Lane Panama Mall Panama Mall Panama Street Panama Street Pearce Mitchell Pl Peter Coutts Circle Peter Coutts Road Peter Coutts Road Pine Hill Court Pine Hill Road Quarry Extension Quarry Road Quillen Ct Raimundo Way Rai m undo Wa y Raimundo Way Roble Drive Rosse Lane Roth Way Roth Way Roth Way Running Farm Lane Ryan Court S Service Road S Tolman Ln Salvatierra Street Salvatierra St Salvatierra W alk Samuel Morris Wy San Francisco Terrace San Francisco CourtSan Juan St San Juan St San Rafael Pl Santa Fe Avenue Santa Maria Avenue Santa Teresa Street Santa Teresa Street Santa Ynez Street Searsville Road Sequoia Wy Serra Mall Serra Street Serra Street Serra Street Sonoma Terrace Stanford Avenue Stanford Avenue Stock Farm R oad Thoburn Court Tolman DriveValdez Place Valparaiso Street Vernier Place Via Ortega Via Palou Via Pueblo Mall Welch Road Wellesley St Wilbur Way Wing Place Yale St Alma Street Alma Street Alma Street Alma Street Alma Street Hawthorne Avenue Lytton Avenue Alpine Acce ss Road Nathan Abbott Way Sam McDonald Road Sam McDonald Mall Vista Lane Bowdoin Lane Arguello Way Governors Avenue Governors Avenue Governors Avenue S Governors Lane Pasteur Drive Lagunita Drive Alma Village Lane Alma Village Circle R e s e r v oir R o a d Reservoir Road Reservoir Road Ranch Road Ryan Lane O'Connor Lane Gene CtBrassinga Ct Cole Ct Birch Street Arboretum Road Welch RoadPasteur Drive Pasteur Drive This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Commercial & RT Zoning Districts - Office is a Permitted Use w/ Possible GF & Size Limitations ROLM & RP Zoning Districts - Office and R & D is a Permitted Use MOR Zoning District - Medical Office is a Permitted Use PF Zoning District - Office is a Conditional Use GM Zoning District - R & D is a Permitted Use & Office is a Conditional Use Stanford Research Park Annual Office and R&D Cap Area Boundaries City Jurisdictional Limits abc Note: Other uses where Office may be an "accessory use" maybe conditionally permitted in Residential Zoning Districts 0'2200' Of f i c e a n d R & D An n u a l C a p B o u n d a r i e s Ar e a M a p CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2015 City of Palo Alto RRivera, 2015-10-01 11:54:38 (\\cc-maps\gis$\gis\admin\meta\view.mdb) Exhibit A Certificate Of Completion Envelope Number: 058EA42C633E4A 139788084 711 CF4A49 Subject: Please DocuSign this document: ORD 5357 Office Growth Meter October 1 2015.pdf Source Envelope: Document Pages: 6 Certificate Pages: 5 AutoNav: Enabled Envelopeld Stamping: Enabled Record Tracking Status: Original 11/3/201510:58:11 AM PT Signer Events Cara Silver cara.silver@cityofpaloalto.org Senior Assistant City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 7/15/2015 5:07:16 PM PT ID: 11910ed1-61d1-4ff3-9cf9-f4eb5a0768e2 Hillary Gitelman Hillary.Gitelman@CityofPaloAito.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered ID: James Keene james.keene@cityofpaloalto.org City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 4/14/2015 5:40:07 PM PT I D: 44fe333a-6a81-4cb 7 -b 7 d4-9254 73ac82e3 In Person Signer Events Editor Delivery Events Agent Delivery Events Intermediary Delivery Events Signatures: 3 Initials: 0 Holder: Kim Lunt kimberly.lunt@cityofpaloalto.org Signature ((DocuSigned by; ~:.0~:::,. Using IP Address: 199.33.32.254 ('UDocuSigned by: ~::;,.:~~ Using IP Address: 199.33.32.254 Using IP Address: 199.33.32.254 Signature Status Status Status Docu~. iii SiCU.lD Status: Completed Envelope Originator: Kim Lunt 250 Hamilton Ave Palo Alto , CA 94301 kimberly.lunt@cityofpaloalto.org IP Address: 199.33 .32.254 Location: DocuSign Timestamp Sent: 11/3/201511:01:21 AM PT Viewed: 11/3/2015 11 :27:49 AM PT Signed: 11/3/201512:46:40 PM PT Sent: 11/3/2015 12:46:41 PM PT Viewed: 11/3/2015 12:50:43 PM PT Signed: 11/3/201512:51 :05 PM PT Sent: 11/3/2015 12:51 :07 PM PT Viewed: 11/13/2015 2:33:24 PM PT Signed: 11/13/2015 2:33:32 PM PT Timestamp Timestamp Timestamp Timestamp