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Home My WebLink AboutRESO 102381 0280009_20250625 Resolution No. 10238 Resolution of the Council of the City of Palo Alto Declaring Property Known as Lot T (APN 120-15-100) Exempt Surplus Land under the Surplus Land Act (Government Code 54220 et. seq) R E C I T A L S A.The City of Palo Alto (“City”) is the owner in fee simple of that certain real property approximately 19,236 square feet in size and situated at the corner of Lytton Avenue and Kipling Street in Palo Alto, CA (“Lot T Property”), APN 120-15-100. B.The parcels adjacent to the Lot T Property are privately-owned and are not currently used as open space, or for low- or moderate-income housing purposes. C.The Lot T property was acquired through City of Palo Alto Parking Assessment District Project 75-63, which proceedings were conducted through the Special Assessment Investigation, Limitation, and Majority Protest Act of 1931 and Sections 13.12.040 and 13.12.050 of Title 13 of the Palo Alto Municipal Code. D.Since being acquired by the City, the Lot T property has been constructed and used as a surface parking lot with approximately 52 parking spaces. E.Subdivision (g) of Section 13.12.050 of the Palo Alto Municipal Code provides that the Council may lease one or more parking spaces and facilities, when, its opinion, the public interest and economy will be served thereby. F.Cities across California are facing a severe housing shortage. The housing shortage is particularly acute in the San Francisco Bay Area region, where the demand for housing—specifically affordable housing— vastly exceeds the available supply. G.The City’s 2023-2031 Housing Element seeks to develop significant additional housing in the City’s downtown area to meet its Regional Housing Needs Allocation targets. H.Program 1.4 of the City’s 2023-2031 Housing Element contemplates increasing the City’s affordable housing stock through redevelopment of City-owned surface parking lots with a stated objective of providing replacement public parking and 100% affordable housing units serving households earning up to 80% of the Area Median Income or for workforce housing for City employees and Palo Alto Unified School District employees. I.In furtherance of Housing Element Program 1.4, the City has identified the Lot T Property for redevelopment with affordable housing. J.In January 2023, City staff issued a Request for Information seeking development concepts for affordable housing and public parking structures on one or more of the City’s twelve surface parking lots in the downtown and received submittals from two firms, Alta Housing and MidPen Housing. Docusign Envelope ID: 4364508F-860A-4A9B-A264-174746780BBD 2 0280009_20250625 K.In December 2023, the Council directed City staff to solicit refined proposals that focused on redeveloping the Lot T Property with 100% affordable housing. L.In September 2024, City staff issued a Request for Refined Proposals for an affordable housing development on the Lot T Property from Alta Housing and MidPen Housing M.On December 2, 2024, the Council approved a contract for design, environmental review, and construction administration services for a new downtown parking garage on a City-owned surface parking lot situated at the corner of Hamilton Avenue and Waverley Street (Lot D Garage Project). The Lot D Garage Project is intended to provide the replacement public parking contemplated by, and in furtherance of, Housing Element Program 1.4. N.On January 21, 2025 the Council selected Alta Housing as its preferred development partner and provided preliminary direction on key project components, including the provision of parking, maximum building height, and the number, composition, and affordability levels of the housing units. O.On April 14, 2025, the Council reviewed design options for the Lot D Garage Project and directed City staff to proceed with design on a six-level structure that would provide approximately 274 parking spaces. P.On June 17, 2025, the City and Alta Housing entered into an exclusive negotiating agreement to provide Alta Housing the exclusive right to, for a limited term, to design and submit a planning application for an affordable housing development on the Lot T that meets the requirements Housing Element Program 1.4 and the development and affordability requirements of Government Code 54221(f)(1)(A). Q.The Surplus Land Act, Government Code sections 54220 et seq., imposes certain procedural requirements when a local agency “disposes” of “surplus land,” as those terms are defined in Government Code section 54221, to promote affordable housing development on unused or underutilized public land throughout the State to respond to the affordable housing crisis. R.The Surplus Land Act requires public agencies, including charter cities, to follow certain procedures to dispose of “surplus land” or declare land to be “exempt surplus land” at a public hearing prior to disposition. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The recitals above are true and correct and are incorporated by this reference as findings of fact by the Council. SECTION 2. Consistent with subdivision (g) of Section 13.12.050 of the Palo Alto Municipal code, the Council finds that the public interest and economy will be served by entering into a long-term ground lease of the Lot T Property. Such lease will facilitate the development of the Lot T property with affordable housing and provide below market rate housing opportunities for individuals and families in a desirable area of the city, consistent with Program 1.4 of the City’s 2023-2031 Housing Element. The Council further finds that new residential development in downtown will increase the number of potential employees and customers to work in and patronize the shops, services, and restaurants. The Docusign Envelope ID: 4364508F-860A-4A9B-A264-174746780BBD 3 Council further finds that the construction of the Lot D Garage Project will adequately replace the public parking currently provided on the Lot T property. SECTION 3. The Council finds and declares the Lot T property is exempt surplus land as defined by Government Code section 54221(f)(1)(B) in that the Lot T property is less than one-half acre in area, and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. SECTION 4. Alternatively, the Council finds and declares the Lot T property is also exempt surplus land as defined by Government Code section 54221(f)(1)(A) because the Lot T property will be developed to provide 100% affordable housing; and the housing units will be deed-restricted to remain continually affordable for the time required, and at the affordability levels, required by Government Code section 37364. SECTION 5. The Council finds and declares that its determination that the Lot T property is exempt surplus land is not a “project” as defined by the California Environmental Quality Act (CEQA) because this determination does not authorize any disposition or entitle development of the property and is therefore an administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines Section 15378(b)(4). ____________________________ Mayor APPROVED: ____________________________ INTRODUCED AND PASSED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ City Clerk APPROVED AS TO FORM: ____________________________ Chief Assistant City Attorney 0280009_20250625 City Manager ____________________________ Director of Planning and Development Services JUNE 17, 2025 BURT, LAUING, LU, LYTHCOTT-HAIMS, RECKDAHL, VEENKER STONE Docusign Envelope ID: 4364508F-860A-4A9B-A264-174746780BBD Certificate Of Completion Envelope Id: 4364508F-860A-4A9B-A264-174746780BBD Status: Completed Subject: RESO 10238 (corrected) Lot T Surplus Land Source Envelope: Document Pages: 3 Signatures: 5 Envelope Originator: Certificate Pages: 2 Initials: 0 Christine Prior AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Christine.Prior@PaloAlto.gov IP Address: 165.225.242.87 Record Tracking Status: Original 6/25/2025 4:17:10 PM Holder: Christine Prior Christine.Prior@PaloAlto.gov Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: Docusign Signer Events Signature Timestamp Caio Arellano Caio.Arellano@paloalto.gov Chief Assistant City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 136.226.64.84 Sent: 6/25/2025 4:22:48 PM Resent: 6/25/2025 4:36:01 PM Viewed: 6/25/2025 8:26:47 PM Signed: 6/25/2025 8:27:06 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Jonathan Lait Jonathan.Lait@paloalto.gov Director, Planning and Development Services City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 6/25/2025 8:27:07 PM Viewed: 6/26/2025 4:05:27 PM Signed: 6/26/2025 4:05:34 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Ed Shikada Ed.Shikada@paloalto.gov Ed Shikada City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 6/26/2025 4:05:35 PM Viewed: 6/27/2025 1:05:04 PM Signed: 6/27/2025 1:05:27 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Ed Lauing Ed.Lauing@paloalto.gov Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 67.188.59.65 Sent: 6/27/2025 1:05:28 PM Viewed: 6/27/2025 2:08:20 PM Signed: 6/27/2025 2:08:39 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Signer Events Signature Timestamp Mahealani Ah Yun Mahealani.AhYun@paloalto.gov Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 217.61.175.43 Signed using mobile Sent: 6/27/2025 2:08:40 PM Viewed: 7/1/2025 3:26:01 PM Signed: 7/1/2025 3:27:29 PM Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/25/2025 4:22:48 PM Envelope Updated Security Checked 6/25/2025 4:35:34 PM Envelope Updated Security Checked 6/25/2025 4:35:34 PM Envelope Updated Security Checked 6/25/2025 4:35:34 PM Envelope Updated Security Checked 6/25/2025 4:35:35 PM Envelope Updated Security Checked 6/25/2025 4:35:35 PM Envelope Updated Security Checked 6/25/2025 4:35:35 PM Certified Delivered Security Checked 7/1/2025 3:26:01 PM Signing Complete Security Checked 7/1/2025 3:27:29 PM Completed Security Checked 7/1/2025 3:27:29 PM Payment Events Status Timestamps