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HomeMy WebLinkAbout2006-10-10 Ordinance 4917ORDINANCE NO. 4917 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 18.08.040 OF THE PALO ALTO MUNICIPAL CODE (THE ZONING MAP) TO CHANGE THE CLASSIFICATION OF PROPERTY KNOWN AS 901 SAN ANTONIO ROAD: BUILD/BRIDGE PROJECT FROM GM TO PC PLANNED COMMUNITY, A COMPREHENSIVE PLAN AMENDMENT TO CHANGE THE LAND USE MAP FROM LIGHT INDUSTRIAL TO MIXED USE, AND A BELOW MARKET RATE HOUSING PLAN The Council of the City of Palo Al to dOE3s ORDAIN as follows: SECTION 1. Application and Hearings. (a) Application has been made to the City for approval of the demolition of an existing ±265,OOO square foot office building at 901 San Antonio Road, and the construction on an approximately four acre site bounded by San Antonio Road and Fabian Way, of ±216,700 square feet of residential living space including 103 for- sale dwelling units, 56 senior apartment units, and an at-grade parking garage (the "Project"). (b) The Architectural Review Board at its meeting of April 20, 2006 considered the Project and recommended its approval, subject to certain conditions. (c) The Planning Commission, after duly noticed public hearings held on June 28, 2006 and July 26, 2006, recommended that Section 18.08.040 (the Zoning Map) of the Palo Alto Municipal Code be amended as hereinafter set forth to permit construction of the Project. (d) The Council, after due consideration of the recommendations, finds that the proposed amendment is in the public interest and will promote the public health, safety and welfare, as hereinafter set forth. SECTION 2. Amendment of Zoning Map. Section 18.08.040 of the Palo Alto Municipal Code, the "Zoning Map," is hereby amended by changing the zoning of certain property known as 901 San Antonio Road-BUILD/BRIDGE (the "subject property") from "GM General Manufacturing" to "PC Planned Community 8644. " The subject property, consisting of approximately four 1 061107 syn 0120162 acres, is shown on the map labeled Exhibit "A," attached hereto and incorporated herein by reference. SECTION 3. Amendment of Comprehensive Plan. The Comprehensive Plan Land Use Map, is hereby amended by changing the land use of certain property known as 901 San Antonio Road-BUILD/BRIDGE from "Light Industrial" to "Mixed-Use" The subject property, consisting of approximately four acres, is shown on the map labeled Exhibit "A," attached hereto and incorporated herein by reference. SECTION 4. Findings for Approval of Planned Community District. The City Council, in approving the Planned Community district, hereby finds that: (a) The site is so situated and the uses proposed for the site are such that general or combining zoning districts will not provide sufficient flexibility to allow the proposed development in that none of the City's conventional zoning districts could accommodate the proposed square footage, floor area ratio, and building height unless variances were granted. (b) Development of the Project on the site will provide public benefits not otherwise attainable, as more specifically described below. (i) The site has been largely unoccupied and in a deteriorated state for many years. While this has generated little parking demand or traffic, it has been an obstacle to creating an environment that would be beneficial to a variety of uses. It is presently zoned to permit commercial development, including office uses, which would exacerbate the City's shortage of housing relative to jobs. The Project will replace a deteriorated, largely vacant office building with well-designed structures built to contemporary building and safety standards using materials of high quality. (ii) Conversion of commercially planned and zoned land The project would result in the redevelopment of a in the Housing Sites Inventory list of the Plan's Housing Element to a residential proj ect units of market rate for-sale townhome-style units. for housing. site listed Comprehensive containing 159 2 061107 syn 0120162 (iii)Designation of land for affordable housing. The PC project for the development of 103 market-rate townhome-style units would allow BUILD to designate a one-half acre parcel for the development of 56 senior apartments that would be affordable to low and very low income levels. This project would be built and administered by BRIDGE Housing Corporation. The Project's owner has provided a summary of the proposed program, making a commitment to provide this housing. Staff has determined that this proposal is acceptable in meeting the BMR polices and programs. A formal Agreement to Provide BMR Housing shall be executed prior to final adoption of this ordinance and recorded before the effective date of the ordinance. (iv) Development of a BUILD/BRIDGE/TKCJL shared plaza. The project would develop a 5,000 square foot plaza that would demarcate the main pedestrian entrances to the two developments and be a focal point for the projects. (v) Second Mortgage Program for Local Employees. $25,000 to $100,000 low interest second mortgages to be offered to local employees targeted to households earning from 100% to 200% of area median income , with a priority on City of Palo Alto and Palo Alto Unified School District employees. Intention of the second mortgage program would be to have local employees live near the workplace as a way to help alleviate the jobs-housing imbalance and impact on traffic. Mortgage program would be revolving and administered by HomeBricks, a BRIDGE affiliate over a thirty-year period. Fund would be initially established at $500,000. (vi) Payment of additional Charleston Arastradero fees. Payment of $480,000, which represents approximately 500% of BUILD's prorate cost of implementing the Charleston Arastradero plan. If the Charleston-Arastradero Corridor Improvement Plan is not fully implemented, the remaining funds shall be used by the City for bicycle and pedestrian improvements in the project vicinity. (viii) Project design goals. The project would include construction of residential buildings that would serve the proposed uses of the site and that would be compatible with the immediate environment of the site. The publicly accessible edges have been designed to create connection between the public and private edges, such as the street level townhome units along the shared driveway with the TKCJL project and the stairways and walkways along Fabian Way leading to the main entrance of the senior apartment building. The private areas are oriented into the central landscaped courtyard of the site. The buildings are well designed and have 3 061107 syn 0120162 been determined to be consistent with the Architectural Review findings. (c) The Council further finds that the Project provides public benefits, as described above, that are of sufficient importance to make the Project as a whole one with substantial public benefit. (d) The uses permitted and the site development regulations applicable within the District are consistent with the Comprehensive Plan and are compatible with the existing and potential uses on the adj oining si tes or wi thin the general vicinity in that the Project would be consistent with the following significant Comprehensive Plan policies: (i) Policy L-5: Maintain the scale and character of the City. Avoid land uses that are overwhelming and unacceptable due to their size and scale. The existing industrial office building on the site, at 90 feet in height, is visually prominent. The proposed BUILD project would remove this building and allow buildings up to 50 feet in height on a site bordered by tall trees on the east and one-and two story buildings (up to approximately 15 to 30 feet in height) to the north, west and south. The size and scale of proposed residential and other structures on the TKCJL Si te would not be visually overwhelming or incompatible with surrounding uses, including two-story industrial buildings with parking along the Fabian Way frontage. (ii) Policy L-7: Evaluate changes in land use in the context of regional needs, overall City welfare and objectives, as well as the desires of the surrounding neighborhoods. The proposed project would redevelop an existing vacant office building and parking lot to uses that would be beneficial to the immediate region and the City, in that the project would provide diverse housing types and uses in and under utilized area of the City in the form of for sale townhome, affordable apartment units for senior citizen, assisted living and congregate care living units. In addition, the project would include community center, open to the public that would include uses such as a preschool and cultural hall, a fitness center, play areas, administrative office space for non-profits, and community meeting areas. The development of the plan and associated studies included input from the public and project stakeholders. (iii)Policy L-11: Promote increased compatibility, interdependence and support between commercial and mixed-use centers and the surrounding residential neighborhoods. The project 4 061107 syn 0120162 would be compatible with nearby neighborhoods, in that the design and location of the high density housing, community center and the buildings that would be constructed to contain the uses are separated from single-family neighborhoods by arterial streets and smaller scale commercial uses. The architecture and neighborhood compatibility has been reviewed by the Architectural Review Board and was found to be well designed and of a appropriate scale to the immediate context of the area. (iv) Policy L-13: Evaluate alternative types of housing that increase density and provide more diverse housing opportunities. The proposed project is the designation of land for mixed-use development which would allow for the development of variety of housing types. The BUILD site would be developed with very low and low income senior housing apartment units, and market rate townhouses and flats. The project would be consistent with this policy as a result of the varied housing types and increased density proposed as a part of development. (v) Policy L-48: Promote high quality, creative design and site planning that is compatible with surrounding development and public spaces. Policy L-49: Design buildings to revitalize streets and public spaces and to enhance a sense of communi ty and personal safety. Provide an ordered variety of entries, porches, windows, bays, and balconies along public ways where it is consistent with neighborhood character; avoid blank or solid walls at street level; and include human-scale details and massing. The proposed project would allow for the redevelopment of a vacant industrial property along San Antonio Road, Charleston Road, and Fabian Way and a smaller commercial use at the intersection of San Antonio Road and Charleston Road. The proposed BUILD development, in the northern portion of the 901 San Antonio Road site, includes seven townhouses with stoops along Fabian Way. As the amount of public street frontage is limited along Fabian Way, planning and layout of the BUILD Site also considers the internal orientation of residences over podium parking structures. Balconies from some of the proposed condominium units would overlook the main access driveway off of Fabian Way and pedestrian access to the main access driveway area is provided from both the condominium and the senior apartment buildings. These components of the projects have been evaluated by the Architectural Review Board and have been found to be consistent with the Architectural Review findings. (vi) Policy L-75: Minimize the negative physical impacts of parking lots. Locate parking behind buildings or underground wherever possible. The proposed BUILD and TKCJL 5 061107 syn 0120162 projects include at-grade parking with residences, recreational, and conununity center uses built atop a podium structure above parking areas. This will avoid negative physical aspects of surface parking lots. Views of at-grade parking areas will be minimized through the growth of landscape plants surrounding the podium structure and by bringing some development down to street level to screen the parking area from the street. (vii)Policy T-1: Make land use decisions that encourage walking, bicycling, and public transit use. The proposed housing development located on San Antonio Road is one of two major transit corridors identified in the Comprehensive Plan as being desirable for increased housing densities. The BUILD and TKCJL projects include measures, including pedestrian walkways, to encourage pedestrian access within the entire 12.5 acre site. One bus route, VTA Express Route 104, operates adjacent to the 901 San Antonio Road site along East Charleston Road. Bus service on this route runs only on weekdays between Palo Alto and San Jose during morning and late afternoon conunute periods. (viii) Goal H-1: A supply of affordable and market rate housing that meets Palo Alto's share of regional housing needs. The BUILD project would contribute 56 units toward the fair share housing needs of Palo Alto. Policy H-2: Identify and implement a variety of strategies to increase housing density and diversity in appropriate locations. Emphasize and encourage the development of affordable and attainable housing. The proposed BUILD project would develop 56 affordable housing units for low and very low income levels and would increase the density and diversity of housing in the project area. The proposed CJL project includes residences for seniors in the form of assisted living and congregate care in a licensed residential facility. The two projects provide a range of housing at increased housing densities. (ix) Program H-3: Encourage the conversion of non- residential lands to residential use to both increase the supply of housing, particularly affordable housing, and decrease the potential for the creation of new jobs that exacerbate the need for new housing. Land use and development applications that propose the conversion of non-residential land to residential or mixed use development will be given preferential or priority processing to encourage such conversion. Policy H-3: Continue to support the re- designation of suitable vacant or underutilized lands for housing or mixed uses containing housing. The proposed Comprehensive Plan amendment would convert a Light Industrial site, which currently contains an office building and fast food restaurant, to Mixed Use with housing anticipated to be one of the primary uses. The land 6 061107 syn 0120162 use, density, and affordable units proposed by the BUILD project and TKCJL project are consistent with the Comprehensive Plan program measure and policy regarding the conversion of non- residential and underutilized lands to residential or mixed use development. (x) Goal H-3: Housing opportunities for a diverse population, including very low, low and moderate income residents, and persons with special needs. Policy H-12: Encourage, foster and preserve diverse housing opportunities for very low, low, and moderate income households. The proposed BUILD development would offer housing opportunities (rental apartments) to very low and low income seniors and the CJL project would provide assisted living and congregate care for seniors. The projects, therefore, would diversify the City's housing stock in the project area. (xi) Program N-16: Continue to require replacement of trees, including street trees lost to new development, and establish a program to have replacement trees planted offsite when it is impractical to locate them onsite. Policy N-15: Require new commercial, mUlti-unit, and single family housing projects to provide street trees and related irrigation systems. Policy N-17: Preserve and protect heritage trees, including native oaks and other significant trees, on public and private property. The BUILD and TKCJL projects would protect trees to be retained and replace trees removed from the site in conformance with the City's Tree Ordinance and Tree Protection Manual. Street trees along the Fabian Street and San Antonio Road frontages will be replaced as required by the Department of Public Works. Two large redwood trees on the adjacent Space Systems/Loral property and healthy trees within the San Antonio Road right-of-way also will be protected from damage during construction activities, as described in Section II. G. Biological Resources Mitigation and Avoidance Measures. (xii)Policy N-28: Encourage developers of new projects in Palo Alto, including City projects, to provide improvements that reduce the necessity of driving alone. The project includes a mix of uses and shared parking to reduce the need for on-site and nearby residents to drive. In addition, much of the housing will be designed for seniors, which will result in fewer vehicle trips. Transportation Demand Management (TDM) measures, such as bicycle parking and van or shuttle service, will be incorporated into the projects to further reduce trip generation. 7 061107 syn 0120162 SECTION 5. Development Plan Those certain plans entitled BRIDGE Urban Infill land Development, Palo Alto, California and Fabian Way Senior, Palo Alto California prepared by Steinberg Architects dated June 22, 2006, a copy of which is on file in the Planning Division office, and to which copy reference is hereby made, are hereby approved as the Development Plan for the subject property, pursuant to Palo Alto Municipal Code Section 18.68.120. SECTION 6. Uses. (a) Permitted Uses. The permitted uses shall be limited to the following: (i) Multiple Family Residential Use: Multiple-family uses and uses customarily incidental to multiple-family uses. In any individual unit, home occupations accessory to the residential use of that unit are permitted subject to Palo Alto Municipal Code provisions regulating home occupations. (ii) Parking Garage: Two spaces per townhome residential unit and 0.7 spaces per senior apartment unit shall be reserved for the use of building tenants, as well as fifty-three (53) guest parking spaces. SECTION 7. Site Development Regulations. (a) Compliance with Development Plan. All improvements and development shall be substantially in accordance with the Development Plan, and subject to the conditions of approval and mitigation measures adopted by City Council Resolution No. 8647. (i) Any exterior changes to the buildings or any new construction not specifically permitted by the Development Plan or by these site development regulations shall require an amendment to this Planned Community Zone or, if eligible, approval under Chapter 18.76 of the Palo Alto Municipal Code, as it is amended from time to time. (b) Tree Protection. The Development plan requires the planting and protection of specified new trees within the development. These trees shall not be removed or destroyed without the prior approval of the City of Palo Alto in accordance with applicable procedures. 8 061107 syn 0120162 (c) Parking and Loading Requirements. Two spaces per towDhome residential unit and 0.7 spaces per senior apartment unit shall be reserved for the use of building tenants, as well as fifty-three (53) guest parking spaces. Fifty-four (54) of the total number of spaces may be tandem oriented parking spaces. No on-site loading zones are specified. A total number of 188 Class I and Class III bicycle parking spaces shall be included in the project. (e) Special Conditions (i) Below Market Rate (BMR) Housing Requirement. The BMR agreement for the PC project for the development of 103 market-rate townhome-style units would allow BUILD to provide a one-half acre parcel on the site for the development of 56 senior rental apartments that would be affordable to extremely low and very low income households. The senior rental project would be built and managed by BRIDGE Housing Corporation. BUILD will in effect transfer its BMR obligation of 16 inclusionary townhomes (103 units times 15%) to BRIDGE by providing BRIDGE with $7.3 million in funding for the senior rentals and by selling the 0.5 acre parcel to BRIDGE. The $7.3 million is the estimated value of the BMR in-lieu fees for the required 16 BMR townhomes. It is intended that BRIDGE will seek all financing to construct the senior housing from non-City sources. Due the uncertainties and competitiveness of financing affordable rental housing, BRIDGE would be allowed use up to six years to begin construction. Two back-up alternatives have been developed in the event the senior rentals are financially infeasible. One option that BRIDGE can elect is to develop a small mixed income condominium project, estimated at about 30 to 32 total units, on the 0.5 acres. In this alternative, a minimum of 16 for-sale BMR units would be provided (to cover the obligation for the 103 BUILD townhomes) plus additional BMRs to satisfy the BMR requirement on the remaining market rate condos. The Development Plan would permit either the 56 senior rental apartments or the for-sale condo project on the 0.5 acres. The second option is for BRIDGE to pay in-lieu fees to the City and sell off the 0.5 acres. This option would be used only if both the senior rentals and the for-sale condos are financially infeasible to develop within the maximum six years allowed. In this scenario, the City will receive a minimum of $4.5 million in housing fees and a maximum of the original $7.3 million plus inflation increases. The Project's owner has signed a letter dated September 1, 2006 making a commitment to provide this housing. A formal agreement to 9 061107 syn 0120162 provide BMR housing shall be executed prior to the approval of the Final Map by the City Council and recorded concurrently with the subdivision map. The BMR and public benefit contributions by BUILD and BRIDGE are described in further detail in the attached letters. The provisions of this condition (e) (i) have been agreed to by the Project's owner and the City of Palo Alto and would be set forth in an agreement regarding provision of BMR Housing. (f) Development Schedule. Building permit issuance is anticipated for the first phase of the project in March 2007. Demolition, grading. and construction are expected to take 15 months with project completion of phase I in April 2008. The 159 units will be completed as two projects: a 103 unit townhouse community and a 56 unit senior affordable rental community. The developer anticipates phasing the townhouse community over three phases with the entire podium garage completed as part of phase I. The senior affordable rental development will be completed separately in a single phase. The applicant anticipates that completion of Phase 1 is likely to occur no sooner than the 2009 with the Senior housing phase to be completed by the end of 2012. Notwithstanding the foregoing, Phase I application for building permits shall be made no later than 1 year from the date of adoption of this ordinance. Application for building permits for the senior affordable rental development shall be made no later than January 2011. The Director of Planning and Community Environment may extend these time limits once by not more than one year, as described in 18.68.130 of the Palo Alto Municipal Code. The Director, at his/her discretion, may allow changes to the phasing order, sequence or a change in the Development Plan to accommodate one of the BMR alternatives as described in subsection (e) (i), based upon a review of the request and the consistency of the request with the certified EIR, conditions of approval, mitigation measures, and any other dedications, exactions or reservations. A written determination of the Director's decision will be made in writing to the applicant. SECTION 8. Environmental Impact Report. The City as the lead agency for the Project has caused to be prepared a Final Environmental Impact Report (II Final EIR II) • Pursuant to State CEQA Guidelines section 15132, the Final EIR consists of the following documents and records: "901 San Antonio Draft EIR, February 2006;" "901 San Antonio Final EIR, June 2006", and the planning and other City records, minutes, and files constituting the record of proceedings. The Final EIR was prepared pursuant to the California Environmental Quality Act, Public Resources Code section 21000, et seq. ("CEQA"), and the State CEQA 10 061107 syn 0120162 Guidelines, California Code of Regulations, Title 14, section 15000, et seq. The Final EIR is on file in the office of the Director of Planning and Community Environment and, along with the planning and other City records, minutes and files constituting the record of proceedings, is incorporated herein by this reference. SECTION 9. Certification. The City Council certifies that the Final EIR has been completed in compliance with the California Environmental Quality Act. The Final EIR was presented to the City Council and the City Council has reviewed and considered the information contained in the Final EIR, staff reports, oral and written testimony given at public hearings on the proposed Project, and all other matters deemed material and relevant before considering for approval the various actions related to the project. The City Council hereby finds that the Final EIR reflects the independent judgment of the City as lead agency. SECTION 10. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: AT? TO FORM: C~ (~ October 10, 2006 6-0 CORDELL, DREKMEIER, MORTON, MOSSAR BARTON BEECHAM, KLEINBERG KISHIMOTO, APPROVED: .~nier Asst. City Attorney AC\-~d 11 061107syn 0120162 KLEIN, , , o ---~- o 0 il I I II I I 0 I I The City of Palo Alto S\lJ(Mr, 2006-06-2113:09:35 Pau:t!l1 Report (\\c:c-m6p~I$\admto\P&I$(jtlar.PI&r.ning,mdb) 0 ~w ______________ ~_, BUILD Project Exhibit A 901 San Antonio BUILD ,Proj ect 0 t:J a This map is a product of the City of Palo Alto GIS -. 0' 200' This document Is a graphlc represenlallon only of best bV8i1abl$ $(jljfC&S; The eUyot Palo Allo assumes no r&$pOnw14l!yfcf any errOl$. "1969102006 Cliy.of pe!o Aila