HomeMy WebLinkAboutStaff Report 2310-21211. Recommenda�on to the City Council to Adopt an Urgency Ordinance and an Interim
Ordinance That Allows the Director of Planning and Development Services to Extend Planning
En�tlements up to an Addi�onal 18 Months Un�l the City's Housing Element is Cer�fied by the
State Department of Housing and Community Development. Environmental Review: Exempt
from CEQA in Accordance with CEQA Guidelines 15061(b)(3).
Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: November 14, 2023
Report #:2310-2121
TITLE
Recommendation to the City Council to Adopt an Urgency Ordinance and an Interim Ordinance
That Allows the Director of Planning and Development Services to Extend Planning Entitlements
up to an Additional 18 Months Until the City's Housing Element is Certified by the State
Department of Housing and Community Development. Environmental Review: Exempt from
CEQA in Accordance with CEQA Guidelines 15061(b)(3).
RECOMMENDATION
Staff recommends the Policy and Services Committee forward a recommendation to the City
Council to adopt the two attached ordinances (Attachment A & B).
BACKGROUND / ANALYSIS
The Planning and Development Services director requests Council authorization to extend the
expiration date for planning entitlements approved for housing-related projects. As proposed, a
qualifying approval could be extended an additional 18 months.
The director seeks this temporary authorization to provide additional time for pipeline projects
to obtain a building permit. Economic conditions and other factors may delay housing
production post entitlement. The attached ordinances further the Council’s goals as expressed
in the City’s adopted housing element and mitigates the potential loss or delay of planned
housing unit production in Palo Alto.
As directed by state law, the City was assigned a regional housing need allocation of 6,086
housing units for the 2023-2031 planning period, which comprises of 1,556 very-low income
units, 896 low-income units, 1,013 moderate-income units, and 2,621 above moderate-income
units. Construction of housing units that have been previously approved (or entitled) is an
essential factor in meeting the City’s housing goals.
Staff are aware of two projects that have pending planning entitlements about to lapse. One
project is located at 3585 El Camino Real (3 units) and another at 788 San Antonio Road (102
units), which expire in December and January, respectively. Staff received one letter from a
property owner’s representative detailing one of these circumstances (Attachment C). In these
instances, if an extension is not granted, 105 housing units may expire. An expired entitlement
would not preclude the owners from seeking a new housing development but it would impose
additional time and costs to secure another planning approval.
Planning permits and approvals typically expire within 12 months, or within the time provided
in the permit or approval. The planning and development services director is already authorized
to extend this time for up to 12 additional months. The proposed ordinance would allow an
additional 18-month extension. For qualifying housing projects that have not already received a
12-month extension, a total of 30 months could be authorized (12+18 months) while the
temporary ordinance is effective.
The attached urgency ordinance would become effective immediately upon adoption by the
City Council and is valid for only 45 days. Its passage would enable the planning director to
extend the project entitlements before they expire. The second, interim ordinance would
become effective 30 days after the second reading and, as proposed, would expire at the end of
calendar year 2024 or upon certification of the City’s housing element by the state housing and
community development department, whichever is sooner.
FISCAL/RESOURCE IMPACT
The recommendation in this report does not have any significant fiscal or resource impacts.
STAKEHOLDER ENGAGEMENT
Notice of the meeting before the Policy and Services Committee was published online and at
the public noticing kiosk on Martin Luther King Jr. Plaza at City Hall at least 10 days in advance
of the meeting.
ENVIRONMENTAL REVIEW
The recommendation in this report is exempt from the provisions of the California
Environmental Quality Act pursuant to CEQA Guideline sections 15061(b)(3) because it can be
seen with certainty that the proposed action would not have the potential for causing an
impact on the environment.
ATTACHMENTS
Attachment A: Ordinance Authorizing Extensions for Housing Projects
Attachment B: Urgency Ordinance Authorizing Extensions for Housing
Attachment C: Property Owner Representative Letter Regarding 788 San Antonio Road
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
NOT YET ADOPTED
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Ordinance No. _____
Interim Ordinance of the Council of the City of Palo Alto Temporarily Authorizing the
Director of Planning and Development Services to Extend the Validity of Planning
Entitlements for Housing Development Projects
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. Pursuant to state law, the City of Palo Alto (City) was assigned a regional housing need
allocation (RHNA) of 6,086 housing units for the 2023-2031 planning period, comprised
of 1,556 very-low income units, 896 low-income units, 1,013 moderate-income units,
and 2,621 above moderate-income units; and
B. In accordance with state law and to further the City’s goals of producing housing, the
City Council adopted the City of Palo Alto 2023-2031 Housing Element on May 8, 2023.
C. Construction of housing units that have been previously approved is an essential factor
in meeting the City’s RHNA and Housing Element goals.
D. Changes in economic conditions and other factors may result in a delay in construction
of housing units following approval by the City.
E. Pursuant to Palo Alto Municipal Code section 18.77.090, planning permits and approvals
shall expire within 12 months, or within the time provided in the permit or approval,
unless the proposed use of the site or construction of buildings has commenced. In
addition, the Planning Director is authorized to extend this time for up to 12 additional
months.
F. In order to permit maximum flexibility for property owners who obtain or have obtained
planning approvals that are in danger of expiration, the City Council desires to authorize
the Planning Director to issue further extensions of time before a planning permit or
approval will expire.
SECTION 2. Notwithstanding Section 18.77.090 of the Palo Alto Municipal Code or
the provisions of any planning permit or approval, the Director of Planning and Development
Services is authorized, in his or her sole discretion, to extend the duration of a planning permit
or approval for a Housing Development Project, as defined in Government Code Section
65589.5, by an additional eighteen (18) months beyond the expiration date that would
otherwise apply. The authority granted herein shall be effective only until the City’s 2023-2031
NOT YET ADOPTED
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Housing Element is certified by the California Department of Housing and Community
Development or until December 31, 2024, whichever is sooner.
SECTION 3. The Council finds that the adoption of this ordinance is exempt from the
provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections
15061(b)(3) because it can be seen with certainty that that the extension of a planning
entitlement will not have a significant impact on the environment.
SECTION 4. This ordinance shall be effective on the thirty-first date after the date of
its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning & Development
Services
NOT YET ADOPTED
1
0160034_20210330_ay16
Ordinance No. _____
Emergency Ordinance of the Council of the City of Palo Alto Temporarily Authorizing
the Director of Planning and Development Services to Extend the Validity of Planning
Entitlements for Housing Development Projects
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. Pursuant to state law, the City of Palo Alto (City) was assigned a regional housing need
allocation (RHNA) of 6,086 housing units for the 2023-2031 planning period, comprised
of 1,556 very-low income units, 896 low-income units, 1,013 moderate-income units,
and 2,621 above moderate-income units; and
B. In accordance with state law and to further the City’s goals of producing housing, the
City Council adopted the City of Palo Alto 2023-2031 Housing Element on May 8, 2023.
C. Construction of housing units that have been previously approved is an essential factor
in meeting the City’s RHNA and Housing Element goals.
D. Changes in economic conditions and other factors may result in a delay in construction
of housing units following approval by the City.
E. Pursuant to Palo Alto Municipal Code section 18.77.090, planning permits and approvals
shall expire within 12 months, or within the time provided in the permit or approval,
unless the proposed use of the site or construction of buildings has commenced. In
addition, the Planning Director is authorized to extend this time for up to 12 additional
months.
F. In order to permit maximum flexibility for property owners who obtain or have obtained
planning permits or approvals for Housing Development Projects, as defined in
Government Code Section 65589.5, the City Council desires to authorize the Planning
Director to issue further extensions of time before a planning permit or approval will
expire.
G. The City Council declares that this emergency ordinance is necessary as an emergency
measure to preserve the public peace, health or safety by promoting the development
of much-needed housing in Palo Alto, in particular because one or more planning
permits or approvals for Housing Development Projects may expire in the near future.
NOT YET ADOPTED
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SECTION 2. Notwithstanding Section 18.77.090 of the Palo Alto Municipal Code or
the provisions of any planning permit or approval, the Director of Planning and Development
Services is authorized, in his or her sole discretion, to extend the duration of a planning permit
or approval for a Housing Development Project, as defined in Government Code Section
65589.5, by an additional eighteen (18) months beyond the expiration date that would
otherwise apply. The authority granted herein shall be effective only until the City’s 2023-2031
Housing Element is certified by the California Department of Housing and Community
Development or until December 31, 2024, whichever is sooner.
SECTION 3. The Council finds that the adoption of this ordinance is exempt from the
provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections
15061(b)(3) because it can be seen with certainty that that the extension of a planning
entitlement will not have a significant impact on the environment.
SECTION 4. This Ordinance shall be effective immediately upon adoption and, unless
repealed or extended by the City Council, shall remain in effect for 45 days, or until a
replacement ordinance becomes effective, whichever comes first.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning & Development Services
CHARLOTTE 4601 Park Road, Charlotte, NC 28209 T. 704 372 5616 F. 704 372 9882
CARY 117 Edinburgh S Drive, Cary, NC 27511 T. 919 461 3950 F. 919 461 3939
WINSTON-SALEM 500 W 5th Street, Winston-Salem, NC 27101 T. 336 923 7650 F. 336 777 0624
ATLANTA 47 Perimeter Center East, Atlanta, GA 30346 T. 770 604 3387 F. 770 604 3959
grubbproperties.com
Grubb Properties, LLC
4601 Park Road, Suite 450
Charlotte, NC 28209
October 18, 2023
Jonathan Lait, Director of Planning
Planning and Community Environment Department
250 Hamilton Avenue
Palo Alto, CA 94301
jonathan.lait@cityofpaloalto.org
RE: Entitlement Extension Request for 788 San Antonio Road Project
Dear Mr. Lait,
On July 27, 2022, Grubb Properties acquired the property located at 788 San Antonio Road with an existing
entitlement in place for that certain 102-unit housing project that was approved by City Council on 11/16/2020.
Since that acquisition, Grubb made a good faith effort to see that project through as entitled and submitted the
building permit application that December 2022.
Amid worsening economic conditions in the construction financing sector unfolding across the country, Grubb
subsequently made the decision to put the building permit application process on hold in April 2023 and sought to
work with your Planning Department to find comprehensive solutions to maintain the economic viability of this
housing project.
As that process continues, the entitlement expiration of January 06, 2024 is approaching and we respectfully submit
this request for an 18-month extension to July 06, 2025. Approval of this request allows our respective parties to
continue coordination efforts on the feasibility of this housing project at 788 San Antonio Road. We appreciate your
prompt consideration of this request.
Sincerely,
Megan Watson
Director, Development
Grubb Properties, LLC
mwatson@grubbproperties.com
CC: Ted O’Hanlon, Consulting Project Manager