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HomeMy WebLinkAbout1997-02-03 City Council Summary Minutes 02/03/97 −251 Regular Meeting February 3, 1997 ORAL COMMUNICATIONS........................................81-253 APPROVAL OF MINUTES........................................81-253 1. Proposed Amendment No. 7 to Agreement No. 2876 between the City of Palo Alto and the Town of Los Altos Hills for Sewage Transportation Treatment and Disposal (CMR:128:97)....81-253 2. Ordinance 4398 entitled “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 a Portion of Property Collectively Known as ‘Charleston Meadows Tract 795' From R-1 to R-1(S)” ...............81-253 3. Conference with City Attorney--Existing Litigation ...81-254 4. Conference with City Attorney--Existing Litigation....81-254 5. PUBLIC HEARING: The City Council will consider an appeal of the decision of the Director of Planning and Community Environment to approve an upgrade of the front, back and side facades, seismic upgrade and parking lot improvements to an existing retail building located at 2741 Middlefield Road (CMR:132:97)..........................................81-254 6. PUBLIC HEARING: The City Council will consider the recommendation to accept proposal from Thomas and Kathleen Taylor for an Option to Purchase the Tower Well Site, 201 Alma Street................................................81-271 7. PUBLIC HEARING: The City Council will consider an appeal of the Zoning Administrator’s decision for a Conditional Use Permit 96-UP-5, allowing live entertainment, including music and dancing, at an existing restaurant (Q-Billiards), located at 529 Alma Street....................................81-282 ADJOURNMENT: The meeting adjourned at 11:10 p.m............81-296 02/03/97 −252 −253 The City Council of the City of Palo Alto met on this date in the Council Chambers at 7:07 p.m. PRESENT: Andersen, Eakins, Fazzino (arrived at 7:20 p.m.), Huber, Kniss (arrived at 7:08 p.m.), McCown, Rosenbaum, Schneider, Wheeler ORAL COMMUNICATIONS Regina Pustan, P. O. Box 60725, spoke regarding Linus Pauling. T. J. Watt, Homeless, spoke regarding tourism, education, Palo Alto, etc. Richard Gruen, Box 2351, spoke regarding levee at high tide. Lynn Chiapella, 631 Colorado, spoke regarding Palo Alto Municipal Code Section 18.41.070. Stephanie Munoz, Los Altos Hills, spoke regarding a traffic citation. APPROVAL OF MINUTES MOTION: Council Member Kniss moved, seconded by Andersen, to approve the Minutes of November 12, 1996, as submitted. MOTION PASSED 8-0-1, Eakins “abstaining.” CONSENT CALENDAR MOTION: Council Member Wheeler moved, seconded by Andersen, to approve Consent Calendar Item Nos. 1 and 2. 1. Proposed Amendment No. 7 to Agreement No. 2876 between the City of Palo Alto and the Town of Los Altos Hills for Sewage Transportation Treatment and Disposal (CMR:128:97) 2. Ordinance 4398 entitled “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 a Portion of Property Collectively Known as ‘Charleston Meadows Tract 795' From R-1 to R-1(S)” MOTION PASSED 9-0. CLOSED SESSION 3. Conference with City Attorney--Existing Litigation Subject: Peterson v. City of Palo Alto, et al., SCC No. CV 753103 −254 Authority: Government Code section 54956.9(a) 4. Conference with City Attorney--Existing Litigation Subject: Arkady Shcheslavsky v. City of Palo Alto,et al., SCC No. CV 748140 Authority: Government Code section 54956.9(a) Public Comments None. PUBLIC HEARINGS 5. PUBLIC HEARING: The City Council will consider an appeal of the decision of the Director of Planning and Community Environment to approve an upgrade of the front, back and side facades, seismic upgrade and parking lot improvements to an existing retail building located at 2741 Middlefield Road (CMR:132:97) Contract Senior Planner Alison Kendall said the application represented a minor facade remodel for an existing retail building with some associated landscape and parking lot improvements. A number of issues were raised by the applicant, the most significant of which was the requirement for a conditional use permit. The original application had since been revised to remove the necessity for a conditional use permit by combining the retail use with an office use in the mezzanine area. The appellant also raised the need for a variance, which would not be required since the facility was already nonconforming, as well as issues regarding loading and delivery. Staff did not believe, given the additional circulation and parking problems, it would be advisable to change the long-standing delivery location. A number of parking and landscaping improvements were proposed by the applicant which the ARB needed to review in more detail, and a sign application still needed to be filed which would provide an opportunity to review the use of any illuminated signs. David Ross, Chairperson, Architectural Review Board (ARB), said the ARB unanimously supported the project. It did not consider any information with regard to the conditional use question since it was not within its jurisdiction. Vice Mayor Andersen queried the process if the applicant had merely wanted to paint the building. −255 Director of Planning and Community Environment Ken Schreiber said changing the paint would be allowed without any type of design review. City Attorney Ariel Calonne said the appeal was a legal interpretation question. While Council's decisions on appeals did not create binding precedent, to the extent staff established a standing administrative interpretation, it was, in effect, binding. Mayor Huber declared the Public Hearing open. Herb Borock, 2731 Byron Street, appellant, said Council needed to consider at least two precedent-setting issues. One related to an interpretation of Palo Alto Municipal Code (PAMC) Chapter 18.94, for which he urged reliance on the City Attorney, and the other was whether the proposed application was a single or multiple use. Paragraph 3 of Attachment A to the staff report (CMR:132:97), Findings for Approval, referred to the project as a retail business selling office furniture with related consultant services. He believed the language as written indicated one business rather than two. When asked to verify the application would be all retail with a binding condition, the application became offices again. The application changed the use for at least part of the building, and he asked whether the Fire Department would review the actual plans. While the City discussed Midtown becoming a retail area in the City, the first change in the area was from retail to office use. All of the on-site parking should be used by the employees who parked all day and delivery vehicles; otherwise, they would use the two-hour public parking spaces or park in front of neighboring residences. On page 4 of the ARB minutes, Attachment E to the staff report (CMR:132:97), the applicant indicated parking would be open to everyone in Midtown, although staff disagreed. Regarding the loading area in the City parking lot, staff failed to respond to whether the current encroachment was legal. If it were, he believed Mr. Fellman of the Real Estate Division would have pointed Council to its action which permitted the encroachment. Deliveries should be prohibited during certain hours in the spirit of being a good neighbor. Planning Commissioner Schink, part owner of the property, regarding the Q-Restaurant application, preferred it be conditioned so that noise stopped at a reasonable hour in order to be good neighbors. He urged the same courtesy be attended with regard to Mr. Schink’s building in Midtown. Signage should receive ARB approval rather than staff approval. He was concerned the design of the Middlefield Road entrance evaded the requirements of the neighborhood commercial zone that front yard setbacks be landscaped. Per the Fire Department Code, only two doors on either side of the front would be used for the required entry and exit because the others were designed to be obstructed by goods of the business. Therefore, most of the frontage should be landscaped as required by the Palo Alto Municipal Code (PAMC). Regarding the conditions in Attachment A to the staff report (CMR:132:97), Condition 5 indicated the proposed changes would increase the building's compatibility with −256 the surrounding retail. He believed the opposite was true because offices were proposed to replace retail. He requested City Attorney interpretation regarding the noncompliance issue in Condition 7. Regarding Condition 10, on-site parking should be used by the employees. He believed the landscape drawings omitted the rear entrance. He queried what was proposed, especially since the design and redesign of the entire Midtown area related to making the entrance to the parking lot a major entrance for customers. Mr. Richmond's letter (on file in the City Clerk's Office) referred to new lights in the parking lot off of Colorado Avenue even though he did not see them on the drawings. Regarding whether the office use was a response to the appeal or whether it was something the applicant always intended, he referred to the July 26, 1996, Palo Alto Weekly which reported the Council's actions of July 22, 1996. Mr. Rapp, in talking about a major office use for the area, guaranteed at least 40 percent would remain retail. On October 9, 1996, Mr. Schink said he would be submitting an application to the ARB for a combination office/retail use. A similar article appeared in the Palo Alto Daily News of October 22, 1996. Shortly thereafter, the application was all retail. The cumulative effect of actions taken by the Council in response to recommendations from the former Chief Planning Official and now the Economic Resources Officer created significant effects in Midtown. For example, there had been a requirement of one space for every 150 square feet. Currently, it was one space for every 200 square feet even though a study reflected there was not enough parking on the west side of Middlefield Road. There was also the catering use permit issue with Victoria Emmons. Recently, Mr. Overway revealed the 11 key intersections in Palo Alto, with Middlefield Road and Oregon Expressway being the worst. It was one of only two intersections at level of service F, only one where the p.m. peak hour traffic exceeded the 2010 year peak hour, and one of two intersections where the three-hour peak hour was greater than 2010. John Northway, 437 Lytton Avenue, supported the findings in the staff report (CMR:132:97). Council Member Schneider queried The KnOwhere Store, and what type of retail store it was. Roxy Rapp, P. O. Box 1672, Palo Alto, said The KnOwhere Store was out of Hilton Head, North Carolina, and there was another store in Boston, Massachusetts. It was a completely new concept which came from the increased home office user. The KnOwhere Store was an office furniture store which sold environment for the home and carried all different types of computers, software, educational materials, etc., for the home office or small business. The KnOwhere Store had another division known as M.G. Taylor, which provided office space and would be located upstairs. Originally, the office was not a part of the plan, but now that the building was not going to be used −257 for 100 percent retail, the remainder would be office. Everything on the ground floor would be for retail sale. Sandy Sloan, Attorney for the applicant, 1100 Alma Street, Menlo Park, was somewhat perplexed by the City Attorney's comments. She understood the item was an ARB appeal, and that the interpretation of the PAMC was already made by the Planning Department and the City Attorney's Office. She referred to page 8 of the staff report (CMR:132:97), and indicated the application proposed less than 15,000 square feet of retail and less than 5,000 square feet of office space. In terms of the use, the proposal complied with the zoning ordinance. Duane Bay, 2261 Columbia Street, Co-Op Market Board Member, supported the staff recommendation. The Co-Op Market believed additional uses in the Midtown quadrant was important to both the City and the other merchants. They looked forward to a tenancy in the building at the earliest possible moment. Daniel Hanley, 2701 Middlefield Road, represented the owners of the two buildings north of the proposed project. In July 1996, the City Council approved a conceptual master plan for the Midtown area. The old Bergman's building was a difficult one to develop, and he applauded the efforts of Roxy Rapp and Jon Schink. The ARB approved the application, and he supported it. He hoped it would be the first step in developing the conceptual master plan and making the shopping center a reality. He was disappointed that an office use was introduced into the project. A few months ago, he was in conference with Messrs. Rapp and Schink, and the plans reflected all retail. Residents on the committee with him and Vice Mayor Andersen demanded retail use, and now to get the project through without a conditional use permit, office use was introduced. He believed it was counterproductive. He urged moving forward with the conceptual master plan. Lynn Chiapella, 631 Colorado Avenue, said the proposed project was much better than what was presented to the ARB in terms of landscaping, entry, and project description. The project was a regional retail and office building which lacked 85 percent of the needed parking on its own site. The success of the building depended on the City parking lot and the rear entry. The new loading doors did not conform to the property line and extended out into the City parking lot. Regarding the various requirements of PAMC Chapter 18.41.070, the plan did not address how the potential noise and glare might impact the neighbors on Midtown Court and Colorado Avenue, the conflict between Conditions 3 and 17 was not addressed by the ARB, and no neighborhood protections were evaluated as part of the application. She was particularly concerned about the residential neighbors opposite the rear entry, and the impact of lighting on residential units in those areas. In the past, the standards for the turn off on the lights were absent, and sometimes they were −258 up as high as 35 or 40 feet. She particularly inquired about heating, ventilation and air conditioning (HVAC), lighting, landscaping, and street trees at the ARB meeting and received no answers. She urged a condition limiting the hours of operation, including loading, delivery, recycling, and garbage, to 8:00 a.m. to 9:00 p.m. While the landscaping on Middlefield Road and Colorado Avenue would be a great improvement, she believed the front landscape could be enlarged to be more attractive since there was 2,500 square feet of area between the curb and the building. The current street trees were in poor shape, and while the conditions required 24-inch box street trees, the ARB said the applicant could retain the damaged trees. The street trees were half dead being hit by trucks and cars because they were too close to a curb which was only two to three inches high. Those street trees should be removed and replaced particularly where the bus stop was. The bus stop was a tremendous heat island, there was no tree to protect it, and there was no shade at the bus stop. The rear entry should be significant since it was supposed to be the main entry, and it would set the standards for the entire Midtown shopping area. The plan called for removing the landscaping under the curbed area. The rear entrance was difficult because there were three City parking spaces blocking it, and one had to maneuver the area sideways. It would be a simple matter to make the area a handicapped parking space. Landscaping needed to be incorporated into the hidden entry to make it interesting for both residents and customers. She also urged that the signage return to the ARB level for consideration. Michael F. Wallau, 2503 Middlefield Road, supported the project. As a resident and merchant in Midtown, he was excited to see new possibilities in the area. He urged moving ahead to revitalize the area. Tom Foy, 2775 Middlefield Road, one-half owner of a vacant building at the corner of Middlefield Road and Colorado Avenue, supported the proposal. He referred to the statement on page 4 of Attachment F to the staff report (CMR:132:97) regarding parking adequacy and access. In order to exit or reach additional parking, customers needed to enter a drive through tunnel under the building to reach the City-owned lot where additional parking was available. Under a long-standing, informal agreement, access to adjacent parking was provided from the Colorado Avenue lot, and at his request, the ARB added that the same courtesy be extended to the parking lot he owned which faced Colorado Avenue with the entrance from the proposed project. Mr. Borock appreciated Mr. Handley's comments that over the past couple of months the applicant had shown him an all retail use, and at that time the press reported an office use inside the building. If there was a hearing on a conditional use permit for an all retail use, someone would ask the question Council Member Schneider asked regarding the length of the lease. It would then be reasonable to −259 condition the use to retail for that period. The reason for the partial office proposal was because that was the way it had always been. He disagreed with parking off of Colorado Avenue and using it as access for the City parking lot. The easiest way to access the City parking lot was through Midtown Court. He was pleased that other proposals for Midtown were forthcoming, and no other buildings would require a use permit for an all retail use. Perhaps some of the past office uses could convert to retail to make up for the change in the subject building. Regarding the landscaping on Middlefield Road, ARB members Francisco Alfonso and James McFall both indicated there should be more landscaping across the width of the building to screen the traffic on Middlefield Road. The PAMC for entry and exit only applied to the two doors on the side, and the proposal was to not have those middle doors always accessible. The only exception in the neighborhood zone from the requirement for landscaping in the front yard setback was for access to the entry doors. He believed more of the front 78-foot width needed to be landscaped. Mr. Northway said the pending landscaping issues would be resubmitted to the ARB when the appeal was settled along with the redesign of the back and side entry. Both Messrs. Rapp and Schink were devoted to trees, and would entertain any additional ideas Council might have about them. The building fronted onto Middlefield Road, and that was where the signs would be. The revised landscaping plans reflected more trees on the site than on the entire Midtown quadrant. The parking lot off Colorado Avenue was developed to be a prototype of what was expected throughout the entire center. Sign issues would also return to the ARB for approval. They were excited about the development. Council Member Wheeler believed accommodating Mr. Foy's request to the ARB involved the removal of a planned tree. She asked whether that was reflected in the revised plans. Mr. Northway said access to Mr. Foy's property was maintained. Council Member Wheeler said the point was raised about the delivery location in the back parking lot, and she accepted the ARB's rationale for maintaining it in the back lot. She also believed the point about limiting the hours of great activity was well taken, and asked whether the applicant would accept it as a condition. Mr. Northway said staff recommended that no deliveries be allowed between the hours of 10:00 p.m. and 8:00 a.m., which was an acceptable condition. Mr. Rapp said when Midtown took off and the back parking became busy with customers, he saw no reason why a truck could not pull in and unload the goods into the side door and be checked in, etc. He believed it had more to do with traffic, and he hoped all the parking −260 spaces would be used. He pointed out the number of trees being put into the lot where there were none currently. More landscaping was requested in the front elevations, and six big trees plus shrubbery underneath was being added. Instead of using cement in the entryway, the intended use was a slate material which went inside the retail stores. It was a retail store, and adding more landscaping across the front would hurt signage and stop people from entering the store because they would not notice it was a retail store. He believed adding 40 percent landscaping to the front of the store was more than any retail store normally did. He disagreed with Mr. Borock on the landscaping. They were also adding two benches so people could enjoy the landscaping being installed to make it more of a public space. Mayor Huber declared the Public Hearing closed. Vice Mayor Andersen disclosed a conversation with the appellant prior to the appeal being filed, and one with Mr. Rapp afterwards. MOTION: Vice Mayor Andersen moved, seconded by Wheeler, to deny the appeal and uphold the approval by the Director, based upon the following findings and conditions for the Architectural Review Board appeal as amended, and with the additional condition that no deliveries shall occur between the hours of 10:00 p.m. and 8:00 a.m.: FINDINGS FOR APPROVAL 96-RB-190 The Architectural Review Board has determined, in approving this proposed project with conditions, that the proposed project, as conditioned, will fulfill the following general goals and purposes of Chapter 16.48.010, namely, to promote the orderly and harmonious development of the city; to enhance the desirability of residence or investment in the city; to encourage the attainment of the most desirable use of land and improvements; to enhance the desirability of living conditions upon the immediate site or in adjacent areas; and to promote visual environments which are of high aesthetic quality and variety and which, at the same time, are considerate of each other. 1. The design, as proposed and conditioned, would be consistent and compatible with applicable elements of the City’s Comprehensive Plan, including the Urban Design Element as previously described in this report. The proposed design will help achieve the policy objective of revitalization of the Midtown neighborhood commercial district. 2. The design would be compatible with the immediate environment of the site. It maintains the existing building height and size, which at two stories is appropriate for the kind of vital neighborhood retail district which is desired for Midtown. The redwood trellises proposed above each entry would provide a unifying element within the Midtown center which relates to −261 the neighborhood’s architectural character. The design combines adobe colored stucco and redwood, materials characteristic of buildings in the area, with teal metal bracing and windows which would provide a contemporary accent appropriate to this neighborhood retail area. The exterior renovations produce a building design suitable for this prominent location and appropriate for this site, which is a key location within the Midtown Revitalization Project Area. 3. The proposed design is appropriate to the function of the project, which is to house a retail business selling office furniture with a related consulting service. The proposed renovation will upgrade the finishes on the building and add building design features and landscaping which will enhance the general attractiveness of this neighborhood retail district. 4. To the degree that the Midtown area has a unified design character, this project is compatible with that character. The elements which are reflected in the design are the use of wood and stucco in natural colors, large expanses of glass and sleek contemporary lines which are found in many Eichlers, and in some of the churches along Middlefield. The redwood trellis element is also incorporated into a number of churches, houses and small retail buildings in the Midtown area. These elements have been attractively combined in this design. 5. The design promotes harmonious transitions in scale and character in areas between different designated land uses. The design maintains the existing building height and size, which at two stories is appropriate for the kind of vital neighborhood retail district which is desired for Midtown, but not abruptly different from the surrounding one- and two-story residential development. The proposed changes will increase the building’s compatibility with surrounding retail and nearby residential uses. 6. While there are no relevant approved improvements on or off site, the proposed design is compatible with the general concepts behind the Midtown Concept Plan developed by property owners and currently being refined to guide public and private improvements. In particular, the increased landscaping and improvements to the pedestrian and parking areas are compatible with the Concept Plan and the general objectives for revitalization of the Midtown commercial area. 7. Within the constraints of the existing building and parking facilities, the planning and siting of the various functions and the building on the site create an internal sense of order and provide a desirable environment for occupants, visitors and the general community. Unfortunately, the existing −262 Colorado Avenue parking lot does not provide enough parking to fulfill the requirements for these uses. In addition, the narrowness of the lot requires a one-way access to the parking from Colorado, and requires cars to exit the lot under the drive-through to the assessment district lot. As non-complying facilities, the applicant is not required to change these facilities unless he increases the degree of non-compliance. The inclusion of office use and the provision of a disabled persons parking space and bicycle parking will decrease the degree of non-compliance slightly. 8. The amount and arrangement of the proposed open space is appropriate to the design and function of the structures. The open space in front of the building would be landscaped to improve the appearance of the building, and provide an attractive, shaded plaza and seating area which connect to the pedestrian arcade of an adjacent building. The parking lot off Colorado provides shade to a south-facing facade and would be substantially improved, with an additional 18 trees to provide substantial shade to parked cars and pavement. 9. There are not ancillary functions needed to support the main functions of the project beyond parking, described under standard (7). Within the constraints of the non-complying facility, these are acceptable. 10. Access to the property and circulation within it is safe and convenient for pedestrians, cyclists and vehicles, within the constraints imposed by the site and the non-complying parking lot. Pedestrian access from Colorado Avenue requires that pedestrians walk in the parking aisle to reach the side entrance. Hazards to pedestrians would increase if deliveries were made via the Colorado Avenue lot, as suggested by the appellant, and trucks had to back up to exit because they did not fit beneath the drive-through. 11. Two existing trees at the front and back of the property are the only notable existing natural features on the site. They are retained and integrated in the proposed design. 12. The renovation proposed superior building materials and textures to the current concrete block building. These factors are an appropriate expression to the design and function of the project. The extension of the adobe stucco treatment to three sides of the building is a distinct improvement over the current painted concrete block. the proposed materials, textures, colors and details are also compatible with neighboring structures, landscape elements and functions. 13. As recommended by conditions of approval, the landscape design concept for the site would create a desirable and functional −263 environment and creates an appropriate unity with the various entries to the site. The proposed design would increase the amount of landscaping and number of trees visible from Middlefield Road and Colorado Avenue. The landscaping improvements could help enhance the Middlefield frontage as a more vital pedestrian area. The conditions would make less of the landscape area off limits to pedestrians, and encourage pedestrian use of outdoor area. Conditions of approval would require tree planting and landscaping wherever possible in the parking lot, improving the appearance of the area and the pedestrian experience along Colorado, while maintaining the function and capacity of the existing parking lot. 14. Plant materials were specified in the January 9 submission of a Landscape Plan, and are appropriate to the site, drought resistant and generally low in water consumption. 15. The design is generally energy efficient. It incorporates shade trees and landscaping to reduce heat gain in the paved parking area, a redwood trellis and shade trees to reduce heat gain from the south-west facade, and skylights and increased window area to provide natural lighting. CONDITIONS 96-ARB-190 Recommendation to the Director of Planning and Community Environment for the Architectural Review Board’s review for an upgrade of the front, back and side facades, seismic upgrade and parking lot improvements to an existing retail building. This ARB approval is conditional upon approval of a conditional use permit, if required, pursuant to Section 18.94.040(b) and Section 18.94.030(b) and other relevant sections of the Palo Alto Municipal Code. Prior to Issuance of a Building Permit Planning/Zoning 1. The final site and/or landscaping plan shall be submitted to and reviewed by the ARB and to include the following modifications: a. Revised landscaping of the Colorado Avenue parking lot per Tom Richman’s drawing of December 1, 1996 and continued access to adjacent parking lot. b. The landscaped area in front of the building along Middlefield shall modified so as to create a tree-shaded pedestrian area with outdoor benches and the possibility of outdoor displays or tables and chairs. −264 c. Bicycle parking is required in accordance with PAMC, Chapter 18.83. Class 2 and 3 parking shall be located as close to the front doorway as possible, which may require some redesign of the front area. Additional Class 2 and 3 bike parking should be placed near the side entrance to the parking lot on Colorado Avenue, if this can be accomplished without displacing existing parking. 2. Final architectural plans shall return to the ARB and include the following modifications: a. Modifications to provide additional architectural interest at east and north entries. 3. All public trees to be retained, as shown on the approved tree inventory or landscape plan to be prepared and submitted to the Planning Division, shall be protected during construction. The following tree protection measures shall be approved by the Planning Arborist and included in construction/demolition contracts and be implemented during demolition and construction activities unless otherwise approved. The following tree protection measures shall apply: PAMC Sec. 8-04-070. Any modifications to these requirements must be approved, in writing, by the Planning Arborist. a. The City’s Planning Arborist shall consult with the project arborist and submit a tree protection plan for the site prior to issuance of a building permit. 4. The ARB approved building materials and color scheme shall be shown on building permit drawings for all buildings, patios, fences, utilitarian enclosures and other landscape features. 5. Detailed landscape and irrigation plans encompassing on- and off-site plantable areas out to the curb must be submitted to and approved by the Architectural Review Board. A Landscape Water Use statement, water use calculations and a statement of design intent shall be submitted for each project. These plans should be prepared by a licensed landscape architect and qualified irrigation consultant. Landscape and irrigation plans shall include: a. All existing trees identified both to be retained and removed including street trees. b. Complete plant list indicating tree and plant species, quantity, size and locations. c. Irrigation schedule and plan. d. Fence locations. −265 e. Lighting plan with photometric data. f. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. 6. Signs (not included in this proposal) require a separate application. Sec. 16.48.050a, Sec.16.48.120a(14), Sec.16.48.120(c). 7. The applicant shall submit a plan addressing trash disposal. The project shall include a recycling area or enclosure which complies with the design guidelines adopted by the ARB and approved by the City Council pursuant to Section 16.48.070(PAMC). Sec.16.48.120a(12), Sec.16.48.120(c). Engineering 8. The applicant shall submit a final grading and drainage plan for the parking lot off Colorado Avenue to Public Works Engineering, including drainage patterns on site and from adjacent properties. The plan shall demonstrate that pre-existing drainage patterns to and from adjacent properties are not altered. Sec.16.28.270. 9. The proposed development will result in a change in the impervious area of the property. The applicant shall provide calculations showing the adjusted impervious area with the building permit application. A storm drainage fee adjustment will take place in the month following the final approval of the construction by the Building Inspection Division. Transportation 10. Signage and landscaping shall meet the sight distance requirements of PAMC 18.83.080, applicable to project frontages where driveways are present, and in parking lots. Landscaping shall be specifically identified in the landscape plan as meeting these height requirements. 11. Bicycle parking is required in accordance with PAMC 18.83. Class 2 and 3 parking must be located as close to the front doorway as possible, which may require some redesign of the front area. Additional Class 2 and 3 bike parking should be placed near the side entrance to the parking lot on Colorado, if this can be accomplished without displacing existing parking. Utilities 12. All utility meters, lines, transformers, backflow preventers, and any other required utilities, shall be shown on the landscape and irrigation plans and shall show that no conflict −266 will occur between the utilities and landscape materials and shall be screened in a manner which respects the building design and setback requirements. Sec. 16.48.120(a)(13) and (c). Sec.16.82.060(c). 13. The Palo Alto Fire Department will be reviewing the renovation cost of improvements to see if PAMC 15.04.170, Subsection 1003.2.9, 5) becomes applicable for automatic sprinklers installation throughout. Please review the referenced section of the PAMC on improvement costs. Prior to Issuance of Building Permit 14. Color chips to match the colors specified in the building permit drawings shall be attached to the cover sheet of the building permit drawing set by the Project Planner. Section 16.48.120(a)12 and (c).IBP16. Public Works Operation 15. Street trees shall be required in 24-inch boxes spaced at minimum 30-foot intervals along project frontage. Species shall be determined by the Planning Arborist in consultation with the Midtown Contract Planner. Newly planted street trees shall be irrigated and maintained by the property owner. During Construction Public Works Engineering 16. The contractor must contact the CPA Public Works Inspector at (415)496-6929 prior to any work performed in the public right-of-way. 17. All construction within the City right-of-way, easements or other property under City jurisdiction shall conform to Standard Specifications of the Public Works and Utility Departments. Prior to Finalization Planning 18. The landscape architect shall certify in writing and submit to Planning Division, and call for inspection, that the landscaping has been installed in accordance with all aspects of the approved landscape plans, that the irrigation has been installed and that irrigation has been tested for timing and function, and all plants including street trees are healthy. 19. All sidewalks bordering the project shall be repaired and/or removed and replaced in compliance with Public Works approved standards. Sec.12.08.010. −267 20. The Public Works Inspector shall sign off the building permit prior to the finalization of this permit. All off-site improvements shall be finished prior to this sign-off. Vice Mayor Andersen sympathized with the issue of the pedestrian walkway in the rear entrance, and believed the final design would accommodate it. The previous structure was awkward in terms of being right on top of an automobile when exiting the store. While it was a public space, there might be something to the suggestion that it be an Americans with Disabilities Act (ADA) space. He sympathized with the notion that the employee's park in the project's own lot, and while he considered making it a condition, he believed it could be worked out among the retailers as the two-hour limit began to be enforced and as business boomed. He thanked the applicant for the additional effort to make the project a beautiful, much improved site in the Midtown area. He was sure it would be a stimulus to the rest of the center. He supported the staff recommendation and encouraged Council support. Council Member Wheeler said the proposed rework of the building was in complete agreement with the agreements reached after many mornings with the Midtown Working Group, both in terms of architectural treatment and what was inside the building. There was quite a stir when the local press reported the use of a very large portion of the building for office because that was contrary to the thoughts and agreements reached among the parties that had taken such an active roll in trying to revitalize Midtown. While she recognized the business would draw its customers from beyond the immediate neighborhood, that was true of many businesses within the Midtown shopping area. Because she worked quite a bit with the neighbors in the Midtown area last year, she was well aware of how active and interested the neighbors were in getting involved in the technological age. Many were interested in having the kinds of products and services that The KnOwhere Store would provide. The neighborhood was actively "networking" in the modern technological way. She believed there would be many neighbors of the particular use that would be very interested in shopping in the store. It would draw from its own neighborhood as well as from other parts of the City. Council Member Schneider congratulated all of the parties involved. When the project began, she had a hard time believing anything would ever come of it because there were so many diverse opinions. There was discussion about multiple owners of the properties, the neighbors desires, and what made financial sense. She believed the project could be used as a beacon for other neighborhoods as a way to work things out. She was delighted to see Midtown get the boost it had been needing for a long time. −268 Council Member Rosenbaum said the Council, the residents, and Mr. Borock were greatly interested in having as much retail as possible and were concerned about office uses. The applicant came in with 20,000 square feet of retail and Mr. Borock appealed evidently correct in his concern that a conditional use permit was required with more than 15,000 square feet of retail. The problem seemed to be the applicant did not care to apply for a conditional use permit to do what everyone said they were interested in. He queried why not apply for the conditional use permit. He also asked for clarification of the City Attorney's comments regarding the precedent. Mr. Northway said the problem with the use permit was when the item came up, even moving as quickly as possible to get the application in, the hearing would not be until March. Not having someone in the building cost roughly $30,000 per month. Basically, the decisions were economic ones. Mr. Calonne clarified the appeal was not really fact-driven. It was a Code interpretation. The factual issue was identified by staff on page 9 of the staff report (CMR:132:97), e.g. the uses would be separated by a wall on the mezzanine, and the architect said there would be separate access. The question was whether that was sufficient separation to backup the distinction between office and retail. What was placed on the record was correct. The process had been one of trying to avoid a conditional use permit (CUP) process. From a legal standpoint, he was comfortable with staff's interpretation. He remembered a similar question being asked with regards to the Varsity where there was some historic mezzanine area no one wanted to wall off so the City authorized using materials to block the area off. The uses appeared to be separated in fact, so the Code interpretation appeared okay. Typically, when Council heard an appeal, it was not making any kind of law for the future. In the subject instance, Council was being asked to ratify a staff interpretation of the code. Council Member Rosenbaum asked for more information regarding the changes in the application. For example, no additional walls were added in connection with the fact it was only going to be 14,000 square feet of retail. He asked whether it was only an interpretation or was there a physical change to the building. Director of Planning and Community Environment Ken Schreiber said the applicant submitted a modified interior design. The applicant and staff discussed both the physical separation that would occur between the retail and office areas as well as the organizational difference between the areas. While there was one overall company, there were two different divisions and somewhat related but different functions. Both aspects were discussed in determining that the project proposed a legitimate office use both physically and functionally. −269 Council Member Kniss said Council had been working toward the Midtown success story for a long time. She associated with the comments of Council Member Schneider. Council Member Eakins clarified the office use represented people who might want to rent offices. Ms. Sloan said it was really a management consulting use. Council Member Eakins clarified it was the same ownership as the retailer. Ms. Sloan said that was correct. Both businesses were owned by Matt and Gail Taylor. One business was the M.G. Taylor Corporation, which was a management consulting business, and the other business was The KnOwhere Store. Council Member Eakins clarified the office use was management consulting, not how to put tables and printer stands together. Ms. Sloan said that office use focused somewhat on conceptual ideas about leadership and forward thinking. Council Member Eakins clarified the office use was not related to the furniture and the equipment so people who were not buying furniture or computer-related equipment would be the likely clients. While they might be the same clients, one would not have to buy furniture to utilize the consulting services upstairs. She echoed the comments of Council Member Wheeler regarding neighborhood versus destination. It was impractical to consider the project a neighborhood use only because for many who considered Midtown their shopping area, they could not walk there in five or ten minutes. Automobiles would be used to go to and from the shopping area, and she did not see the question about whether the use was neighborhood serving, as a useful distinction. MOTION PASSED 9-0. 6. PUBLIC HEARING: The City Council will consider the recommendation to accept proposal from Thomas and Kathleen Taylor for an Option to Purchase the Tower Well Site, 201 Alma Street Senior Financial Analyst Janet Freeland said the item transmitted the proposal submitted in response to the Request for Proposal (RFP) for an option to purchase the Tower Well site, and the recommendation of the Tower Well Site Proposal Evaluation Committee that Council approve the proposal submitted by Thomas and Kathleen Taylor for a single live/work space and public plaza on the site. The RFP anticipated that any structural investigation of the tower would be performed by the optionee following Council award of the option. −270 However, due to questions raised during the proposal process concerning the unknown structural conditions of the tower, staff believed it would be best for both the City and the proposer for the proposer to undertake structural investigation prior to the award of the option to purchase. Staff recommended Council approve the proposal submitted by Thomas and Kathleen Taylor, and direct staff to negotiate an option to purchase with the Taylors, prepare an environmental impact assessment (EIA) for the Taylor proposal and return to Council for approval of the EIA and option to purchase. Roger Kohler, Historic Resources Board (HRB) Member, said the City Manager's report (CMR:108:97) came out too late for the HRB as a whole to review the various proposals so he could not comment based on HRB action. On several occasions the HRB appeared before the Council and requested the Tower Well site be placed on the historic inventory and was rejected. The HRB had not looked at the matter as it was before the Council. Council Member Fazzino respected Mr. Kohler's strong opinions on the issue and he communicated them to the Council. On a number of occasions over the past few months, however, many HRB members, Public Arts Commissioners, and Planning Commissioners appeared before the Council as advocates on particular issues or projects that might also appear before the Commissions or Boards for review. He was confused about the appropriate role Commissioners and Board Members played in terms of being advocates or representing the decisions or recommendations of Boards and Commissions. The issue arose during the demolition moratorium issue when a number of people from the HRB spoke as individuals. City Attorney Ariel Calonne believed there were two pieces of the issue. The first came up in the fall with the HRB involvement in the historic demolitions. Staff intended to propose to Council an ordinance defining incompatible offices or functions for Board or Commission members. For example, staff would recommend Council create rules which stated Commissioners or Board Members not solicit people who came before a Board or Commission to do business with the City for business in front of their own Board or Commission. On the political reform side, the law said one could not make or participate in the making of a decision in which one had a material financial interest. Certainly, one could not both make a decision and represent a client at the same time. There was a limited exception for architects and design professionals who had no one else to represent a client which allowed them to appear in front of their own Board. They could not participate in the decision but they could appear. Generally speaking, the dual participation was allowed for sole practitioner design professionals. Staff still needed to address and wanted to recommend that Council ultimately address the problem of appearances of incompatibility between representing private clients in certain ways and working on a City −271 Board or Commission. Obviously, the impact on the applicant pool was an issue Council would want to consider. Council Member Fazzino said Mr. Kohler, for example, had been an effective advocate for a point of view on the particular issue. Certainly, any citizen, and he assumed even a member of the Planning Commission or HRB, had a right to appear before the Council and state a point of view. However, for the community and the Council, sometimes there was a distinction between the role of an HRB member or the roles of various members of the Public Arts Commission as Commissioners and as private citizens which became blurred for both Council and the public. He asked what was appropriate for an HRB Member or another Board or Commission member with respect to personal advocacy as opposed to representation of the Commission on which he or she served. Mr. Calonne said it was a value question and he could not say what was appropriate. He had strong feelings about what appeared improper, and he would lay them out when staff returned with the compatibility listing. Council might well defer or feel that more stringent restrictions were necessary. While staff had been advising on a case-by-case basis, he knew there had been some confusion about the sole practitioner exception. The City Attorney's Office was in a bit of a fix with regard to the HRB currently in that it was not staffed to advise the HRB yet they were performing a function with the demolition ordinance which called for a fair amount of energy. He knew the Council liaisons to the HRB had been helping on procedural issues. Mr. Kohler pointed out his personal feelings about the particular item were tempered by his role on the HRB. Even though he served on the committee to review the proposals, he was careful to approach those proposals based on HRB standards and requirements and the City Council's mandate. He was there that evening because he was the only one available and his statements would focus on what the HRB had discussed. Council Member Kniss said essentially the proposal was to sell the site and the benefit for the City for doing so. City Manager June Fleming said whether the Council desired to the sell the site was a policy issue. The item before the Council was staff's best response to Council direction. The directions and the process staff followed would culminate in the sale of the site, but whether Council wanted to proceed to sell was still an issue for Council to determine. Council Member Kniss said when Council sold in the past, it clearly attempted to maximize its return. Senior Planner James Gilliland said that was correct. −272 Council Member Kniss queried the public benefit and roughly the size of the plaza as compared to the 8,400 square feet represented at the site. Ms. Freeland said the public plaza represented 1,500 square feet, and it was to be improved with public art and possibly some interpretive elements. Council Member Kniss presumed the plaza would be accessed only on foot and that no parking would be provided. Ms. Freeland said that was correct. Council Member Kniss clarified the public use was roughly 1,500 square feet of public use from 8,400 square feet overall and preservation of the tower but not use of it. Ms. Freeland said that was correct except the ground floor would be accessible because the use would be a business open to the public. Council Member Kniss clarified the tower would be protected. Ms. Freeland said the tower would be protected with a facade easement. Council Member Kniss said if the tower were turned into a residence it would fall under the interim regulations for pre-1939 units. Deputy City Manager Emily Harrison said staff's uncertainty was due to the structure not being used as a residential structure in the past. Ms. Fleming said the structure was not subject to the pre-1939 regulations because it was not a residence, but it would be an issue if it were converted. Council Member Kniss clarified the maximum to be returned to the City monetarily from the sale was roughly $100,000. Ms. Freeland said that was correct. Council Member Kniss clarified the benefit to the City for getting close to one acre of land in the downtown area was roughly $100,000 a 1,500-square-foot public plaza accessed by foot with potential art work and rehabilitation of the tower. The staff report (CMR:108:97) indicated the property was appraised several years prior at roughly $300,000 if it were not encumbered. Ms. Freeland said that was correct. Council Member McCown referred to discussion in the staff report (CMR:108:97) on all the proposals pursuant to the evaluation criteria of compatibility or consistency with the Comprehensive Plan and the −273 Zoning Ordinance, and the impact of the proposed use in the neighborhood and the environment, etc. She asked whether consideration was given by staff to refer the proposal to the Planning Commission for input on those evaluation criteria. Ms. Freeland said no. Council Member McCown asked whether Planning Department staff was on the evaluation committee. Ms. Freeland said yes. Council Member Schneider clarified the ground floor would contain a business available to the public. She asked what type of business would be there. Ms. Freeland said the anticipation was that someone would live upstairs and operate some type of business downstairs related to an art, craft, or profession. Council Member Schneider clarified it would be a commercial or professional business on the ground floor. The business would really have nothing to do with the well site. Ms. Freeland said that was correct. Council Member Eakins queried who would be responsible for the maintenance of the public plaza. Ms. Freeland said the future owner of the property would be responsible. Performance guarantees would be secured during the option negotiation period. City Attorney Ariel Calonne said the question was whether the structure, as it currently stood, was subject to the historic demolition ordinance, and the answer was no. If the structure were converted, it would be subject to the ordinance. He did not believe the historic demolition ordinance was a factor. Mayor Huber declared the Public Hearing open. Donald Phillips, One Carriage Court, Menlo Park, encouraged Council to reject the recommendation of the evaluation committee. Council owed it to the community to use the valuable City asset for a significant public benefit consistent with the City's Comprehensive Plan. His proposal converted the water tower into an archive facility and constructed six rental units. The RFP clearly stated the City's objectives to satisfy a public need consistent with the Comprehensive Plan. The first order priority was to develop a use which preserved and enhanced the tower without significantly altering its appearance. If the solution did not require windows, it would help to preserve the tower's integrity. Using the tower −274 for archival, historical and family records, photographs, and art as well as other important documents and records would fulfill a much needed public benefit and preserve the architectural integrity of the tower. The architect produced a high-quality, creative design which provided for an inspired mural on an interior wall which depicted the contributions and vision of the early founders of Palo Alto; a commemorative plaque related to installation of the tower. As in the case of the mural, participation and advice of the HRB and Public Arts Commission (PAC) would be encouraged. A gallery would be open to the public. The housing element provided six rental apartments, including one below-market-rate (BMR) unit, located in close proximity to the train station. The plan represented a good example of transit-based housing and was within walking distance of downtown services and facilities. The project met two major themes of the Comprehensive Plan, e.g., reducing reliance on the automobile and increasing the overall supply of rental housing. It also met the criteria in Program T3 for locating higher density development along transit corridors. John Eller, partner, Sandy & Babcock International, Architectural and Planning, 1349 Larkin Street, San Francisco, said their firm had worked with Don Phillips to construct in excess of 500 market rate housing units. They designed their proposed project to make a positive architectural contribution to the economy and community. The design intended to create a sense that the development grew up around and enhanced the existing tower. The tower on each elevation was the center piece and focus. A recommended minor modification to the tower was to give the existing dome a tile roof to bring it into architectural compatibility with the proposed six units of rental housing. The architecture itself proposed to follow a Spanish revival theme inspired by the vernacular of Palo Alto buildings by notable local architect, Birge Clark. Mr. Clark, in his history, provided University Avenue and a number of other areas in Palo Alto with his distinguished buildings. The plaster walls, classic barrel tile roofs, wood details at the balconies, divided window lights, and french doors enhanced and were reminiscent of those styles. The plan proposed a single, one-bedroom unit and five, two-bedroom units. The two-bedroom units were about 1,200 square feet, and parking was provided for each of the six residential units at a one-to-one basis and three additional parking spaces to provide public access to the archive and the reuse of the tower. Jonathan Carter, 2315 Eastridge Avenue #723, Menlo Park, proposed converting the Tower Well site into an owner-occupied single-family residence with minimal physical changes to the property. A one car garage was proposed on the Hawthorne side of the property. Excessive landscaping would encompass the rest of the property highlighted by an art enclave for use as determined by the Public Arts Commission (PAC). Regarding financing, a covenant on the property would specify that 25 percent of profits from all future sales would be donated to the City's Historic Association or the PAC. In terms −275 of the financial benefit to the City, typically, about 25 percent of the value of a residential property resided in the land itself. The plan allowed the City to retain its land interest, defacto, and an interest in all future appreciation of the property. He proposed an entirely residential use of the property, and the Taylor proposal was mixed commercial and rental. The Taylor proposal called for six additional parking spaces on the Alma side of the property, and City zoning ordinances called for nine parking spaces with at least one covered spot. Regarding upkeep, an owner's value came from the appreciation of the property, and it was in an owner's best interests to maintain the property in good condition. A landlord, however, derived value from the property from the rent it provided, minus the upkeep costs. The idea was to keep rent high and upkeep costs low to maximize value. All to often, rental property fell into disrepair as the owner was not motivated to maintain it. The two proposals also differed in aesthetics. The Taylor proposal filled over half the Alma facade with public, paved parking spots. If the City ordinance of nine parking spots were enforced, over half of the land between the tower and Alma Street would be allocated to parking. In terms of the Comprehensive Plan policies set forth on page 2 of the report (CM:108:97), he believed his proposal was more in line with the City's stated goals. Alma Street was designated as the City's primary skyline, and goals for the development of the corridor were outlined. His proposal created a serene and attractive environment for the Tower Well with 75 to 140 feet of uninterrupted landscaping and greenery commensurate with the City's guidelines for urban design on Alma Street. He urged Council's affirmative vote for his proposal. Council Member Rosenbaum asked for an example of how the City would receive 25 percent of future profits. Bernard Carter, 2315 Eastridge Avenue, #723, Menlo Park, said the formula would be the same as the Internal Revenue Service used as the basis of a property minus the sales price. As one normally passed the basis of a property up to the next house, there was a value established at that time. The 25 percent calculated at that time would be what went to the PAC or to the Historical Association. It would be a covenant against the property in perpetuity. Fred Eyerly, 101 Alma Street, said several years prior, the Council considered a proposal to develop a single room occupancy (SRO) hotel on the site, which the Board of Directors at 101 Alma opposed as incompatible with the adjacent residential area. One year prior, some limited proposals were entertained, and he stated the best use for the property would be to preserve it as a park commemorating the tower for the water utility. While Council Member Kniss indicated support, no one else did. He had been was attracted to the Taylor drawings because he believed it was compatible with the neighborhood, preserved the tower, and gave some commemoration to the water utility. He knew that a facade type easement worked because −276 he had gone through it years before with the Squire House and it worked well. Having read the proposals before the Council, he supported the Taylor proposal as recommended because of its limited impact on parking, preservation of the tower, and open space. While the Carter proposal was interesting, he was unable to find any drawings on it. He urged approval of the staff recommendation. Michael Griffin, 344 Poe Street, represented the Downtown North Neighborhood Association (DNNA). Downtown Palo Alto experienced a number of improvements over the past few years, and it looked as if the pace would continue. Two years prior, the Chamber of Commerce successfully promoted the color zone parking scheme to improve on the irritating parking situation Downtown. While things improved for shoppers, the situation was worse for residents, and now they were contending with a divisive parking permit system to mitigate the color zone improvement. Stanford's desire to improve the traffic flow on Sand Hill Road in order to expand its shopping center threatened to increase cut-through traffic in the Downtown North neighborhood, and DNNA was about to wrestle with the defensive tactic of street barricades. It now appeared the neighborhood needed to respond to the Tower Well site improvement. He was not sure why they needed to improve the water tower since it was not bothering anyone, but there were some development proposals to improve the site. The DNNA suggested rather than dealing with each of the improvements on an ad hoc basis, it would help to slow things down and consider a more inclusive plan. If the water tower became an office or a house instead of remaining a park, it might be a lost opportunity to do something beneficial for the much improved neighborhood. If barricades were determined to be a solution to keep shopping center traffic out of the neighborhood, perhaps the water tower site should be part of the scheme. It was important to determine how the Tower Well site could be improved in such a way as to make a positive contribution to the surrounding neighborhood. DNNA recommended final disposition of the Tower Well site be postponed until the status regarding the Sand Hill Road project was known and the onslaught of traffic in order to make an enlightened decision. Dan Lorimer, 465 Hawthorne Avenue, President of the DNNA, said he and Tony Badger, past president of DNNA, consistently stated the tower should be used for a public benefit rather than private gain. DNNA also believed the City land around the tower could be combined with a strip of what was now the end of Hawthorne Avenue to form a park to serve as a buffer from nonlocal traffic. The retracted proposal from the Foundation for Global Communities seemed best because the impact of landscaping and the fountain were all positive. Proposals other than those submitted by Carter and Taylor, were insulting to the neighborhood and showed no regard for the concerns of current residents. Both the Carter and Taylor proposals left the tower substantially in its current condition. The Carter proposal was best in that there were virtually no changes to the −277 appearance of the tower and the site. The Taylor plan proposed an external stair tower, the addition of exterior doors, and a lot of parking. The first Taylor proposal was probably better in that it was a single family use. DNNA did not understand why a single family use needed parking since paving and an out-building would detract from the tower. Further, both Carter and Taylor responded positively to the DNNA's desire to close Hawthorne Avenue as part of the neighborhood traffic control measures. DNNA believed a basis existed to work with either party where both the private party and individuals in the neighborhood could win. However, DNNA preferred that none of the proposals be accepted in their present form that evening. It should be understood that DNNA did not propose to close Hawthorne Avenue without protections for the other east and west streets, but the opportunity presented by the Tower Well site was unique. Nowhere else in Downtown North could a small park be created from land already owed by the City. The site could potentially become both a buffer and a small unique spot to visit. It could include a rose garden or a fountain as suggested by the Foundation for Global Community. The site should ideally be developed as a City and neighborhood asset; e.g., if anything was to be done with the tower at all, the use should make the tower better from the standpoint of residents of Palo Alto, particularly those who lived and worked closest to the tower. Previous suggestions ranged from an art studio to museum space, and DNNA believed many of those proposed uses were compatible with the character of Downtown North. Nevertheless, since the RFP was poorly publicized, most people were unaware they could have submitted proposals until it was too late. When people discovered the parcel's proposed sales price of $1,000 to $100,000, they were dumbfounded. It was well known that such a site could sell for $500,000 based on comparable sales, although that overlooked the value of the tower. The tower, were it developed for private use, allowed an unbelievable violation of the daylight plane. Nowhere could a building of such height be built, and yet the proposals discounted the value of the building based on the notion that it might need seismic upgrading. He urged that any plan to sell the tower be deferred for at least two months while the neighborhood developed its own proposal and to allow other citizens of Palo Alto to introduce ideas founded on the notion of community benefit rather than private gain. Monty Andersen, Cody, architects, 941 Emerson Street, clarified he spoke as the architect and not as a member of the HRB. Even though his relationship with the tower project dated back to 1992, he did not participate in any discussions and debates at the HRB level on the issue. In 1992, as a member of the HRB, he was first approached by George Zimmerman in the Planning Department who knew he was a member of the Dream Team and familiar with the history of the area. Mr. Zimmerman showed him the original RFPs which did not mention the need to preserve the tower. In fact, those proposals made it the proposers responsibility to haul the debris of the tower away. He shared that some might consider the tower as symbolic of the −278 relationship between the City and the founding father's forward thinking that lead Palo Alto to become one of the first municipalities in the country to purchase and operate its own utilities, a decision which still made Palo Alto unique. It was an important enough matter that it should be discussed at the HRB level. The HRB debated the matter and twice appeared before the Council to recommend the tower's inclusion as a category 2 structure on the historic inventory. It was never acted upon, and the whole issue of the tower was shelved until such a time as Council's call for unique options which might be brought forward from the public. The Taylor's answered the Council's public challenge, and their proposal spurred the new RFP. His interest in the tower and its preservation lead him to his involvement with the Taylor's and the development of their proposal. They discussed many creative options for the use of the tower, and arrived at a residential type of reuse for several reasons. As an architect, the adaptive reuse issue of older buildings was often dealt with. He knew an aggressive program for development would be at odds with the goal of preserving the tower. An overdeveloped public use would create many obstacles which would undermine the ability to keep the basic shape of the tower intact. Eventually, the low intensity, residentially-oriented proposal was deemed to be the most appropriate with their preservation goals. The other aspect of the proposal was the public use aspect. If the tower were to be saved, then something needed to be done to educate people as to why it was an important symbol in the community. With the centennial of the Utilities Department only a year away, the interpretive aspect of the public plaza and its ability to educate people would be unique. Whatever happened with the tower would require a unique vision which should be balanced with the preservation of the tower. Putting the tower into the Taylor's hands would be placing a unique project into the hands of people with demonstrated abilities to carry off such an undertaking while serving what he believed should be the City's goals of preservation and education. The Taylor's put considerable effort into their planning and assembled a dedicated group of people with specific talents and abilities capable of pulling the project together. Such projects required intensive planning and development. Since the City had not indicated a desire to take over the stewardship role of the property, the best approach would be to put the property in the hands of people who would. Benign neglect was not preservation. Council Member Kniss clarified the bottom floor was a studio and meant to be accessed by the public which was the reason for the six parking spots. Mr. Andersen said that was correct. Council Member Kniss queried whether the studio was to be used by the applicant or rented out to someone. Mr. Andersen believed the idea was that whoever ran the retail aspect of the tower would theoretically live above. −279 Council Member Kniss clarified the studio was not meant for the Taylors to live in but rather to be developed by them. Mr. Andersen deferred to the Taylors for response. Council Member Kniss presumed the second floor was not a living area. Mr. Andersen said the second floor was sandwiched in between the bottom and upper floors and it was very difficult to get light into it. The aspects of storage and dark room were put on that level because they did not require the need for light. By putting the living area up on the top, light could be brought down through the center of the structure. Council Member Kniss clarified the living area looked essentially like a studio apartment. Mr. Andersen said that was correct. Council Member Kniss clarified the studio apartment was meant for one or two people. Mr. Andersen said that was correct. He deferred the actual use aspect to the Taylors. Council Member Kniss heard the concern of the neighborhood and the number of cars. Ronjon Nag, 204 Cowper Street, was somewhat surprised to read about the development and how inexpensive it was to actually get into the site. He queried how ordinary people could be part of such attractive developments. The specific benefit was not clear to him, and he was surprised that one could get 8,400 square feet of land for $100,000. If the project were delayed and the opportunity was available to everyone, he believed a lot more proposals would be brought forward. He believed there was some merit in delaying the decision. If the tower structure itself held water, he imagined it was very strong and the need for seismic upgrades would be limited. Council Member Fazzino said he was a Downtown North resident and was sensitive to the issue of lack of communication. He asked whether Mr. Nag was aware of the extensive conversations with Mr. Badger a year or so prior regarding the proposals before the Council at that time and the possibility of the neighborhood developing a proposal. Mr. Nag said no. He did not believe the Palo Alto Weekly was sufficient. He believed there were more efficient ways to use the computer. −280 Council Member Fazzino said the Downtown North neighborhood, through Tony Badger, was extensively involved in the issue the first time around. RECESS TO CLOSED SESSION: 9:30 P.M. - 9:40 P.M. The City Council met in a Closed Session to discuss matters involving existing litigation as described in Agenda Item Nos. 3 and 4. Mayor Huber announced that no reportable action was taken on Agenda Item Nos. 3 and 4. MOTION TO CONTINUE: Council Member Schneider moved, seconded by Rosenbaum, to bring forward Item No. 7 for the purpose of opening the Public Hearing, and continue the hearing to the March 3, 1997, City Council Meeting. 7. PUBLIC HEARING: The City Council will consider an appeal of the Zoning Administrator’s decision for a Conditional Use Permit 96-UP-5, allowing live entertainment, including music and dancing, at an existing restaurant (Q-Billiards), located at 529 Alma Street MOTION TO CONTINUE PASSED 9-0. ITEM NO. 6 CONTINUED Tim Gray, 1670 Virginia Avenue, said while he submitted a proposal for the Tower Well site, he spoke as an advocate of the arts and public benefit. The public facility zoning, could be honored in principal by sharing public use of the structure grounds. If sold, the buyer was not simply a purchaser, but was assigned a stewardship of public trust to assure public benefit. His proposal was approximately 6,000 square feet of outdoor space and 900 square feet of indoor space fully dedicated to the public use in the form of a neighborhood inn, e.g., one housing unit and ten affordable neighborhood inn units. His proposal would generate more than $30,000 per year in lodging tax, reduce congestion as people staying would not have to drive and park Downtown, and people staying Downtown would more likely take a taxi or train. Short- term housing or lodging was truly a public benefit and relatively more scarce than housing or public parks. He requested that public benefit be defined by impact on the broader community versus any narrowly defined constituency. The Downtown North neighborhood had paid its pound of flesh in the urbanization of Palo Alto. While he sympathized with their needs, he believed whatever use was defined for the Tower Well site should include some art space. Natalie Wells, 3259 Alma Street, Co-Chair, Public Art Commission said PAC, one week prior at its regular meeting, heard the proposal by Tom Taylor. PAC supported the public plaza concept with the −281 inclusion of public art and recommended a fuller involvement by the PAC in the process of selecting the public art. Vice Mayor Andersen said Council had received a letter stating that the PAC agreed it could support Mr. Taylor's proposal provided the applicant could fulfill all the conditions required of public art elements. He asked for clarification. Ms. Wells said the conditions included a full participation by the PAC in selecting the artist and the art work to be included in the plaza. Vice Mayor Andersen queried whether Mr. Taylor had already indicated an artist. Ms. Wells said that was correct. The PAC believed the presentation on the artist and his work was incomplete. Vice Mayor Andersen asked whether the artist would be involved in a competitive process. Ms. Wells said that was one possibility, or other artists could be presented with fuller documentation of the artist's work. Vice Mayor Andersen clarified whether it was the artist the PAC questioned, not the process by which they would be selected. He queried to what extent the particular artist was “off-the-shelf” by the PAC. Ms. Wells said the artist selection was not accepted. Council Member Eakins asked whether the City could require approval of the PAC for public art with the "benefit package." City Attorney Ariel Calonne said yes. As a proprietor, the City could place whatever conditions a seller would. Russell Hancock, 3348 St. Michael Drive, favored the Taylor proposal. To do nothing amounted to an endorsement of the current condition of the sight which should be unacceptable. Those who desired to do nothing should be required to show how the City would benefit and who would maintain the site. City staff spent countless hours on the subject. To do nothing would squander the investment of person hours, and the City would have to continue to revisit the situation. If Council did nothing, it should at least allocate enough money to make the site more safe and attractive because no one would stand for the present condition of the property in their own neighborhood. Tim Schmalbeck, 745 Christine Drive, believed the Tower Well site was an attractive nuisance. Recently, many young people became aware of the presence of the site, and at the top of the 76-foot tower they could drink and smoke with no fear of being caught. The −282 ladder up the backside might look intimidating to many adults, but to teens it was an opportunity or a challenge. The ivy stopped abruptly at the ladder due to the constant pruning by those who climbed up the backside. There was graffiti on the top east side. Someone climbed to the top, hung over, and painted their name. There was also graffiti on the right side of the front door. There had been a well-preserved trespassing sign on the property since the 1920's which was stolen within the past two months. The recent publicity had brought negative attention to the site. He cautioned Council to make haste in making a decision because the site could not afford to be left alone. The tower could be saved through the public/private partnership and simultaneously decrease the City's liability and increase the City's attractiveness. The potentially dangerous nuisance could be turned into an attractive landmark. Council Member Schneider understood there had not been any police reports of problems at the site. City Manager June Fleming checked with the Police Department and was told they did receive occasional calls to the site. The calls were usually about people using the tower for some activities but not to the extent described by Mr. Schmalbeck. Council Member Schneider asked whether it was necessary to put additional patrols in the area if what Mr. Schmalbeck said was correct. Mr. Schmalbeck suggested that if someone resided in the tower or the tower was being worked on, it might discourage teens from climbing on or defacing it. Council Member Schneider said from what she heard from the Police Department, she was not sure the activity reported by Mr. Schmalbeck was actually occurring. She clarified the City Manager was comfortable with the protection at the site and that it was not a public nuisance. Ms. Fleming was not prepared to respond to that specific question, but she did not need further direction from Council to address whatever issue might be there. She did not anticipate additional resources would be needed to take care of the problem. Franz Busse, 2389 Amherst Street, supported Tom Taylor's proposal for use of the water tower. In terms of the possibility of a park, the Taylor's worked on their proposal for well over a year, and no one had stepped forward with a park project. Bowden Park was 90,000 square feet, whereas the Tower Well site was only 8,400 square feet. The play space at Bowden Park was 100 feet back from the street while the entire depth of the Tower Well site was 112 feet. Large trees separated Alma Street from the play area in Bowden Park which the Tower Well site did not have. Clearly, the tower Well site was −283 not an ideal park location. He urged moving forward with the Taylor proposal. Tom Taylor 123 Sherman Avenue, said the Tower Well site had seen a fair amount of garbage accumulate, and some of the $90 per month the City spent on maintaining the site was in its removal. The primary benefit of their proposal was the actual preservation of the tower. A lot had been made of the monetary contribution versus preservation. There was a real trade off. In 1992, Council decided not to tear the tower down and not to maximize the financial gain made by selling it. If Council wanted to revisit that decision, the return on the property could be maximized by bulldozing the tower and auctioning the lot. It was worth a lot more money without the tower on it. With the tower, one was really looking at a restricted development. Their proposal contained about 2,000 square feet which drove the value of the property and what they were able to offer for it. The broader and larger the development, the more one could pay for it. While he believed the Phillips' proposal with six attractive residential units was an overdevelopment of the site, it would probably bring a lot more money, yet Mr. Phillips offered the same amount for the property as the Taylors. A public plaza on the site was much more beneficial than a park. He believed the tower access, limited though it might be, in a live/work environment would be far greater than it was currently. Currently, the only people who could gain access to the property were those who made an appointment and went to it. Their proposal offered a budget for art while other proposals provided space for it. The size of the budget was equal to that of the huge Hobach installation on Sheridan and Park. Hobach was allocating about $30,000, and if one included the entire plaza, theirs was over $60,000 for art and City contribution. One of the concepts put forward by the PAC was to reassess the artist. In a forum called "Art in Architecture," the committee advocated selecting an artist at the time the project team was put together. He picked an architect and selected an artist, and they had been working together for almost 18 months on different proposals. He requested Council respect that process and allow the creative team which put the project together to continue. He urged support for the proposal. Council Member Rosenbaum asked who would maintain the public plaza. Mr. Taylor said he and Kathleen Taylor would maintain the plaza at their expense, and he assumed extension of the existing facade easement would include language to that effect. Council Member Rosenbaum asked how the obligation would continue if the Taylors wanted to sell the property. Mr. Taylor said all the facade easements continued in perpetuity. −284 Council Member Rosenbaum asked whether that was also true for maintenance of the public plaza. Mr. Taylor said that was correct. The facade easement was very specific about how the building was to be maintained. If the City did not believe the easement was being maintained properly, it could either do the repair itself or have someone else do it and bill the owner. Council Member Rosenbaum clarified that the staff report (CMR:108:97) indicated the Palo Alto Municipal Code (PAMC) required nine parking spaces; yet, the proposal reflected six parking spaces. Mr. Taylor had spoken with Manager, Planning Projects Jim Gilliland who originally believed the first two floors were the commercial portion of the mixed use space, whereas only the ground floor could be considered commercial because of the Americans with Disabilities Act (ADA) restrictions. The second floor was residential, storage, etc., and as such, he believed six was the correct number of parking spaces. Manager, Planning Projects Jim Gilliland said Mr. Taylor was correct. When the preliminary zoning checks on all the proposals were done, he assumed the second floor would be a part of the studio, which was at a different requirement. If the second floor was part of the residence only, then the parking requirement was six spaces. Council Member Rosenbaum said staff was particularly happy with the Carter proposal to have some percentage of future sales go to the City, and he queried whether Mr. Taylor would consider such a proposal. Mr. Taylor said his proposal put money up front and invested in the plaza and the art, which he believed was a good contribution. The Carters were not offering any up front benefits but rather something down the line. He would not be adverse to accepting the staff recommendation, but felt it would be somewhat disingenuous to tout it as a real public benefit in that it was not their intention to develop and sell the property quickly. Council Member Kniss clarified the Taylor's intent was not to live in the property. Mr. Taylor said their desire was to live in the property, and they submitted two proposals. One proposal was for their residence, and one was a conservative application for the building which required the least amount of change. The proposal before the Council met the goals enunciated by Council and preserved and used the tower productively. They would not live in the property until possibly −285 after their children were grown, but a life/work space was very attractive to him and his wife. Council Member Kniss clarified the Taylor's intent was to develop the site and rent it. Mr. Taylor said that was correct. Council Member Kniss referred to page 15 of the staff report (CMR:108:97). The monetary consideration to the City under Option 1 was $1,000 to $100,000. She presumed the Taylors would subtract out their own costs and the City would get the remainder. Mr. Taylor said the intent was to "risk share" with the community. The $100,000 mark was the same offered by Don Phillips and twice that offered by the Carter proposal. While he had sufficient resources to do the project assuming all went well, his fear was if they got into the project and realized the retrofitting was very expensive. If he was unable to afford the retrofitting and complete the project, it would be a no-win situation for the community and for him. He sought to include a provision where he would allocate enough funds in order to give something to the City and be able to cover the risk. For example, in another rehabilitation of a 1957 concrete tilt-up warehouse, the structural assessment indicated $2,500, and the retrofitting cost another $2,000. While the Tower Well site was a building of incredible strength, historically, there were a lot of examples where under tests and current code, many things needed to be done regardless of the physical strength of the building. He was really looking at what was needed to meet the building requirements set forth by the City. Some of the structural engineers had spoken to said a steel and concrete member inside would be required and the best way to accomplish that was the floor. Janet Freeland asked whether the floor was then a deduction and the improvement was made at the City's expense. He needed a floor. The delta was what was required to maintain the building, what a floor cost, and what a structurally reinforced steel and concrete floor cost. He paid for the floor. Council Member Kniss clarified overall the City would not receive more than $100,000. Mr. Taylor said that was correct. Council Member Kniss said the City would receive something between $1,000 and $100,000, depending upon what was discovered when the property was developed. Mr. Taylor said it depended upon what the structural engineer discovered and recommended and what the building code required. It would not be his personal decision. −286 Council Member Kniss said the goal was to benefit the public. The question was the amount of money the City received and secondarily, the public benefit. She estimated the public benefit was a relatively small public plaza which would have some art on it, but no benches were proposed. Mr. Taylor did not know whether the plaza was an attractive place to sit. Council Member Kniss clarified the tower would be rented out for some period of time, and Mr. Taylor and his wife might live there in 20 years. Mr. Taylor said that was correct. Council Member Schneider asked how much it would cost to develop the parcel. Mr. Taylor said a ballpark figure was somewhere between $267,000 and $375,000. One of the largest unknowns was the structural requirements. Council Member Schneider asked about the ability to get financing for such a project. Mr. Taylor said it could be difficult. One of the main hurdles was insurance. Several insurance agents rejected him. The financing would probably be private, and he was confident he could raise it. He needed to pursue the insurance further; there were high risk carriers. Katy Taylor, 123 Sherman Avenue, appreciated the recommendation for the life/work space proposal, and believed it was a good blend of their former proposal and the City's desire to keep the tower as unchanged as possible. Six criteria were used for the evaluation of the project and their proposal met or exceeded the needs of the City in those areas: 1) Public Benefit. Due to the live/work nature of the project, there would be public access to the tower, and their plaza proposal included art. Other proposers allowed a space for art. The proposal also included interpretive elements to inform the public why the tower was worth preserving. Although listed as a separate item, the preservation of the tower was a public benefit; 2) Tower Preservation. Their proposal offered the fewest changes. Other proposals would paint, tile or cut new windows into the tower; 3) City goals. The larger projects were grossly underparked and would negatively impact the neighborhood with both parking and traffic; 4) Neighborhood and community impact. Positive site improvement, minimal traffic and parking impact were key elements of their proposal. The larger projects would have a detrimental impact on the area with insufficient parking and increased traffic. They contacted the DNNA and were willing to work with them in the −287 development of the project; 5) Proposer's ability to carry out the project. They had worked on similar projects and converted industrial and commercial spaces to residential properties. It was something they enjoyed doing and saw it as a family project; and 6) Monetary considerations to the City. They offered a sliding scale based on the unforeseeable risks that might be associated with the project. Based on the low level of development, they could not offer to pay more than what was proposed. She urged approval of their proposal. Trevor Southey, 69 Belcher Street, San Francisco, said he was the artist the Taylor's had been talking with for the past 18 months. He was excited about the history of the tower and had been toying with ideas that would directly address the history, the original settlers, and their experience with water. His idea was to take existing ingredients off the site, particularly fragments possibly from some of the pipes that were part of the original workings of the tower, and incorporate them into a figurative piece of sculpture. His background was extensive in public work, and he offered his references. He worked with people, he did not arrogantly attempt to persuade or insist that his view was the way it should be. Art was a people experience and not his experience to be imposed on others. Naturally, he preferred to do work which reflected his history and background. He volunteered to present to the Council and the PAC his background, the kinds of works he completed, and allow input on the ideas he would present. Mayor Huber declared the Public Hearing closed. Council Member Rosenbaum said as an owner of City property, he did not know how to evaluate Mr. Taylor's offer. He asked whether the City would hire an appraiser to determine whether the City was getting fair value based on what was being proposed. Deputy City Manager Emily Harrison said although Mr. Taylor's proposal was probably much more developed than others, they would probably need more definitive information than what they currently had. They had a value, as Council Member Kniss pointed out, which was somewhat dated for the land itself absent the tower which could be updated. To a certain extent, they needed to depend on Mr. Taylor's estimates for what his development would be. Council Member Rosenbaum believed a knowledgeable appraiser could say how much the land was worth based on what was being proposed, and the income from the development taking the expenses of developing the property into account. Ms. Harrison believed if they were restricting it to the Taylor proposal, they probably could. −288 MOTION: Council Member Fazzino moved, seconded by Andersen, to approve the proposal submitted by Thomas and Kathleen Taylor for a live/work space and public plaza on the site and direct staff to negotiate an option to purchase with the Taylors, prepare an Environmental Impact Assessment (EIA) for the Taylor proposal, and return to Council for approval of the EIA and option to purchase. Council Member Fazzino said the Tower Well site issue was not new for most of the Council, and he appreciated the spirit with which the proposals were offered. There were some innovative ideas, but on balance, the Taylor proposal had a low impact on the site, best preserved the public space and the historic tower, and provided art which was an important objective. The Taylor proposal was also consistent with what he hoped would be done in the near future with respect to traffic calming in the Downtown area, which was an important objective. If Council wanted to maximize profits on the site, it could move forward to sell the property, lose the historic flavor of the site, and create a much greater impact on the neighborhood. The City ignored the property for so many years, and he was fascinated that suddenly the tower had become the most wonderful historic site in town. Where was the Council over the years when the proposals to designate the Tower Well as a historic structure were rejected, or even six or seven months ago when two Council Members argued strenuously that the site had no historic value. The Tower Well was a precious historic site, and unless Council accepted a creative proposal which involved the private sector, he was convinced within three weeks time once the speeches given that night were past, the property would be ignored once again. He was amused that some characterized the site as a park because it looked more like the back lot of a supermarket. The property would suffer from benign neglect unless Council took immediate action to turn things around. While the degree to which the property was an attractive public nuisance had not been established, there was no argument that something needed to be done. Interest was also expressed in waiting a couple of months and looking at other proposals. Council went through the process three or four times, and he was ready to act. The Taylor proposal best met Council's objectives, and he encouraged support. Vice Mayor Andersen agreed the proposal provided a low impact way of making the tower something the City could be proud of and a community benefit. He offered friendly amendment to the motion. INCORPORATED INTO MOTION WITH THE CONSENT OF THE MAKER AND SECONDER that 10 percent of the profit of future sales be contributed to the City of Palo Alto for the purposes of public art, and that the public art as proposed by the applicant and his artist be reviewed by the Public Art Commission. Vice Mayor Andersen associated completely with the comments of Council Member Fazzino regarding the benefits to the community as well as the fact that it was time to take action. The decision to −289 sell the property, along with other sites, was made in 1988. Clearly, if Council wanted to maximize profits for the City, it would tear town the tower and sell the property. While many people in the community wanted to see the tower preserved, he doubted the City wanted to get into the business of paying the kinds of expenses necessary to maintain the Tower Well site in some real way. Through the combinations of the private sector and the City, the opportunity existed for low use and public benefit. He urged support for the motion. Council Member Kniss still favored the status quo. It presently cost the City roughly $60 per month, and to turn the property into a park or someplace attractive, it would have to allocate a small amount more and plant several small bushes or trees. Nothing had been done to the site by the City because it was designated as a well site to be sold. She believed the property still represented a fine example of history in the Palo Alto community. The Tower Well site commemorated the City's utilities, and a good deal of water was safely stored there. Clearly, the Taylors ideas were excellent. Her job was to deliver to the City a fair price for something such as the Tower Well site, and $1,000 to $100,000, and probably closer to the $50,000, was a very small amount. The property would be developed, and even though there was some risk, eventually there would be some profit. She confessed that she and Council Member Wheeler enjoyed time at the property the day before and saw no shopping carts nor debris. She was surprised to hear of the site being an attractive nuisance, of climbs to the top of the Tower, and people potentially falling down. If that were the case, the police should be made aware of it. Even though Council Member Fazzino said the Downtown North neighborhood was very involved, she was concerned that several from the neighborhood indicated they had not heard about the process. Somehow simply leaving land open in Palo Alto had become very unpopular. She opposed the motion, and urged the status quo. Council Member Eakins did not have the years of history other Council Members had and was not worn down by it. She agreed the Taylor proposal was a low impact one, and she liked seeing Council preserve something that was genuinely old instead of continually building imitation old things. She was concerned the continuing care of the plaza area be safeguarded. A plaza should be walkable and a place where one could sit as well. It should all be part of the art design. According to the motion, the public area would be purchased for a token and the trade-off was preserving the tower. While the PAC was being asked to work with the artist, she was concerned the PAC have adequate strength in its review position in case the artist's proposals were inadequate according to the standards of the PAC. She had strong views about the PAC's position being sufficiently strong if it did not have a chance to have a competition, which was usually the case with public ground. She was not sure how that should be conditioned. −290 Vice Mayor Andersen believed there was a spirit of collegiality and cooperation from the applicant and the PAC. He anticipated by working together they could improve upon the proposals through the use of the PAC. He suspected if they could not agree, they would return to the Council. He queried the type of "hammer" Council Member Eakins envisioned. Council Member Eakins said there would have to be agreement, and if that could not occur, then the PAC could open the work to a competition. Ms. Fleming said if the motion went forward as it stood, the project would have to go through a number of review bodies. Included were the Architectural Review Board (ARB), HRB, and the PAC. Those bodies would submit a recommendation to the Council on which final action would be taken. Mr. Calonne said while it was not a public art program, the PAMC was explicit that Council had distanced itself from matters involving art. Council Member Fazzino did not want the Council to sit in judgment of public art. Council had a group of experts and artists, and he had no problem handing over the responsibility for the public art component to the PAC and having them deal with it. Council would obviously have final review if it wanted, but he preferred to have the recommendation come from the PAC. If the PAC could not work out an agreement with the Taylors and the proposed artist, he believed it was entirely appropriate to suggest someone else. Ms. Fleming said it was clear in the history and in the record that Council did not involve itself in making decisions about pieces of art. When the project returned to the Council, if there was a recommendation Council did not like from the PAC or one where they had not reached agreement, Council did not have to make the decision. Council could simply send the project back. PAC's review would be included without any modification to the motion. Council Member Fazzino understood but believed Council Member Eakins' point was important. As originally stated, the motion assumed the Taylors would select the artist period. Vice Mayor Andersen said the intent of his friendly amendment was to simply allow the current team to continue to work on the project and be reviewed by the PAC. Council would return to square one if the PAC could not agree on the art. Square one was if disagreement was placed before the Council and Council would in turn return the matter to the PAC with instructions to rebid the matter. He saw no question but that the PAC would be the final judge. −291 Council Member Eakins said the PAC's view was that generally stronger proposals and a better result were achieved with a competition than with just one artist. In the absence of a competition which would be the PAC's preference, what the City Manager explained about the process was an adequate safeguard. She did not believe anything more needed to be added. Council Member Wheeler said in June 1996, when Council discussed the RFP, she did not join with Council Member Kniss. She was dejected at that point about the care the City had taken with the piece of property, and with Council's attitude about the historic merit of the property or lack thereof. At that time, she supported the RFP because she was curious what the private sector could do to preserve the tower more reasonably than what the City seemed willing to do. In the meantime, the community expressed to Council how it felt about the issue of historic preservation and the retention of the character of the City. Council and the community received an increased education about the values and merits of historic preservation, and if they were back at that original discussion, she hoped Council might come out in a different place with regard to the status of the subject property. As part of the RFP response, Council saw that the tower and its retention or development into something useful to the private sector was as burdensome to the private sector as it seemed to have been to the City. She could not, however, reconcile accepting a figure perhaps as low as $1,000 for the property in exchange for retaining the tower when the bare piece of property was worth a minimum of $500,000. She could not make that square with the way she believed she needed to represent the community nor with how she saw her fiduciary responsibility to the community. She would like to see the tower remain and to see the City invest a little more than $60 per month and make the corner at least presentable. She suggested to the Downtown North neighborhood representatives that if the property remained in public hands, it might be an opportunity for the neighbors and community members to get involved with the resources of the "Palo Alto Together" program to fix up the site without expending a lot of monetary resources. She would be glad to help with the neighborhood on such a proposal. She opposed the motion. She appreciated not only the Taylor's proposal, but everyone else who took the time and gave the thought and effort into responding to the RFP to preserve the tower. While she opposed the motion, she agreed the tower should to be preserved. Council Member Schneider commended all the applicants for their proposals and staff for its many hours. Back in June 1996, when Council had its public hearing regarding an option to purchase the Tower Well site, she voted for the RFP, but what she had in mind was not what she received in the proposals. She anticipated something like an historic archive but without housing. She envisioned something from which the community would truly derive benefit. She was further taken by the comments by Mr. Griffin and Mr. Lorimer regarding their neighborhood. It was their −292 neighborhood, and as Council Member Wheeler indicated, there was a great opportunity for the neighborhood to get together and do something with the site. In June 1996, she was probably one of the strongest voices that did not believe the site had any historical significance and favored tearing it down and putting up a parking lot. Her views had changed since then. She believed the Tower Well site belonged in the hands of the City and that it truly had historical value. The property did not belong in the private sector. With a few dollars and elbow grease, they could do something with the site and with the tower to make it truly of public benefit that everyone in the community could enjoy. She would oppose the motion. Council Member McCown said having read the material and listened to the proposers as well as the neighborhood, she was not comfort- able the Taylor proposal provided the public benefits which were the purpose of embarking on the RFP. She believed the proposal from Mr. Phillips was very well done and conceptually had many more of the public benefits one might look for. It proposed a total public use of the tower, a number of new housing units very near to transit on one of the City's major arterials and with all the parking provided for those units. While the number might not be right, she was not persuaded the Phillips proposal was scrutinized the way it might be if Council was really going to consider it. If, after scrutiny and participation by the neighborhood, she did not know whether some adjustments might be possible. In any event, if Council were pursuing a private/public use of the site, and through the option process if Council were truly committing to a further investment of time, she would be much more interested in pursuing it through the Phillips kind of concept than through the Taylor concept. Yet, she was not prepared to recommend it either. When Council talked about the matter the time before last, it was clear it was not going to be initiating anything, but rather seeing what came out. There were three ideas last year which caused Council to go ahead with the RFP. Council knew, when the RFP was approved, that it was somewhat neutral about what it would get back or how it would be evaluated. She regretted that people invested a lot of time, but at that point she would not support the staff recommendation or the motion on the floor. If the motion failed, it gave the neighborhood a chance to become proactive, and she encouraged them to do so for the reasons others put forward. Council Member Rosenbaum supported the motion for the reasons stated by Council Member Fazzino. He offered a friendly amendment to secure an appraisal of the property and negotiate a sales price of the land based on the expected revenue and the cost of the development. Vice Mayor Andersen asked what Council Member Rosenbaum hoped to achieve through the process. −293 Council Member Rosenbaum said his intention was to provide some assurance to the Council that the offer by Mr. Taylor was indeed reasonable. MAKER AND SECONDER AGREED TO INCORPORATE INTO THE MOTION that staff be directed to secure an appraisal of the property. Mayor Huber supported the motion for the same reasons he supported going out to an RFP in June 1996. He did not believe the City was going to put any money into the project, and it would be a question of benign neglect forever. Structurally the tower needed some work; and while the Taylor proposal might not be the best in the world, it was reasonable and would provide the City with a substantial tower that would stand. MOTION FAILED 4-5, Andersen, Fazzino, Huber, Kniss “yes.” ADJOURNMENT: The meeting adjourned at 11:10 p.m. ATTEST: APPROVED: City Clerk Mayor NOTE: Sense minutes (synopsis) are prepared in accordance with Palo Alto Municipal Code Sections 2.04.200 (a) and (b). The City Council and Standing Committee meeting tapes are made solely for the purpose of facilitating the preparation of the minutes of the meetings. City Council and Standing Committee meeting tapes are recycled 90 days from the date of the meeting. The tapes are available for members of the public to listen to during regular office hours.