HomeMy WebLinkAboutStaff Report 148-07City of Palo Alto
C ty Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:
DATE:
SUBJECT:
CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
FEBRUARY 12, 2007 CMR: 148:07
APPROVAL OF ANNUAL COMPLIANCE REVIEW RE
DEVELOPMENT AGREEMENT WITH STANFORD UNIVERSITY FOR
THE SAND HILL CORRIDOR PROJECTS (CONTINUED FROM
JANUARY 22, 2007)
RECOMMENDATION
Staffrecommends that the City Council:
1.Find that Stanford University has complied in good faith with the terms and conditions of
the development agreement.
Direct staff to issue a Certificate of Compliance to the University, according to the
provision of Section 10(a) of the Agreement, stating that:
a) The Agreement remains in effect, and
b) Stanford University is not in default.
DISCUSSION
The Council was originally scheduled to review this item at the January 22, 2007 meeting (see
Attachment A: CMR 120:07). In advance of the meeting, Council members asked whether
ongoing construction and the relocation of a pathway nearby on Stanford lands are consistent
with the terms of the Sand Hill Corridor Development Agreement. The Council voted to
continue the item allowing staff opportunity to follow up on the questions.
Staff has reviewed the construction ~lans, contacted Stanford representatives, and determined the
following:
CMR:148:07 Page 1 of 3
The project consists of a golf course practice range and associated grading. The project is
consistent with the land uses (academic or recreational, including golf course) allowed in
Area B in the Sand Hill Corridor Development Agreement.
The project also includes deletion of the trail along the Searsville Road alignment, and
construction of off-road, lighted pedestrian and bike paths along Sand Hill Road and
Stockfarm Road. This alignment would maintain pedestrian and bike access and
crossings at existing signals across from Oak Creek Apartments (Searsville connection),
at Stockfarm, and at Oak Avenue in Menlo Park. These connections were shown in the
Sand Hill Corridor Development Agreement, but the route along Searsville was outside
the scope of the Agreement. The result is a somewhat longer route from Sand Hill Road
to Campus Drive for some walkers and cyclists.
The new trail sections and realignment are consistent with the C-1 Trail alignment in the
County Trails Master Plan and do not affect those trail segments completed with the Sand
Hill Road Projects or required by the Trails agreement reached between Santa Clara
County and Stanford.
The plans were routed to the City in July 2006 and reflected the trail relocation, but the
deletion of the Searsville Road trail component was not highlighted. Stanford has
indicated that it will be more proactive in identifying if pedestrian and bike routes outside
the City limits are to be affected in future project submittals.
Staff continues to recommend that the Council direct staff to issue a Certificate of Compliance,,
indicating that the Agreement remains in effect and that Stanford is not in default.
PREPARED BY:
CURTIS WILLIAMS
Assistant Director
DEPARTMENT HEAD REVIEW:
STEVE EMSLIE
Director of Planning and Community Environment
CITY MANAGER APPROVAL:
EMILY
Assistant City Manager
CMR:148:07 Page 2 0f3
ATTACHMENTS:
Attachment A: CMR 120:07
COURTESY COPIES:
Stanford Management Company (Jim Inglis)
Stanford University (Larry Horton)
City of Menlo Park (David Boesch)
County of Santa Clara (Ann Draper)
County of San Mateo (Gaye Quinn)
David Newman
Charles Carter
Bill Phillips
Jean Snider
CMR: 148:07 Page 3 of 3
Attachment A
C ty
City of Palo Alto
Manager’s Report-
TO:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
JANUARY 22, 2007 CMR: 120:07
ANNUAL REVIEW OF COMPLIANCE WITH DEVELOPMENT
AGREEMENT WITH STANFORD UNIVERSITY FOR THE SAND HILL
CORRIDORPROJECTS
RECOMMENDATION
Staff recommends that the City Council:
1. Find that Stanford University has complied in good faith with the terms and conditions of
the development agreement.
Direct staff to issue a Certificate of Compliance to the .University, according to the
provision of Section 10(a) of the Agreement, stating that:
a.The Agreement remains in effect, and
b.Stanford University is not in default.
BACKGROUND
In June 1997, the City Council approved Comprehensive Plan amendments, zoning changes and
design al3plications for the Sand Hill Corridor Projects (Projects). The Projects include the
Stanford West Apartments (Apartments), senior, housing, Shopping Center modifications and a
set of roadway modifications, including the widening of Sand Hill Road to four lanes from Santa
Cruz Avenue to Arboretum Road and a two-lane extension from Arboretum Road to E1 Camino
Real. A development agreement vesting these approvals was entered into between Stanford and
the City and was effective on August 14, !997. The development agreement requires annual
City Council review of Stanford’s compliance with the conditions and requirements of the
agreement.
CMR:120:07 Page 1 of 3
DISCUSSION
The attached September 8, 2006 memo from Stanford Management
Stanford’s fiscal year 2005-06 activities related to implementation
agreement. These activities include:
Company describes .
of the development
The number .of Below Market Rate (BMR) units increased from 63 to 105 units at the
Stanford West Apartment development in accordance with the Development Agreement.
Restoration of grasslands completed in conformance with the Native Grassland Restoration
Monitoring Report, progressing toward development of a native grassland meadow.
Continued operation of the on-site retail store at the Stanford West Apartments; Stanford is
subsidizing the store to offset the on-going loss from operations..
Construction completed of the Classic Residence by Hyatt with more than 90% occupancy.
Construction completed on the final segment of the Sand Hill .Road Improvements after
approvals from the City of Menlo Park (November 12, 2002) and the County of San Mateo
(June 10, 2003). The roads phase of the Sand Hill Road Project is now complete.
There were no changes occurring at the Stanford Shopping Center during the 2005/2006
-reporting period.
The City consented on November 17, 2003 to the Assignment .and Assumption Agreement
between Stanford University and the Simon Property Group for a 51-year lease of the Stanford
Shopping Center. During this reporting period, Simon Property Group has submitted
preliminary plans to the City for expanding the Stanford Shopping Center by approximately
250,000 square feet and adding a 120 plus room hotel. This expansion would require amending
the Sand Hill Development Agreement.
RESOURCE IMPACT
There are no resource impacts stemming from the action recommended on the development
agreement compliance program.
POLICY IMPLICATIONS
This report does not represent any changes to existing City policies.
ENVIRONMENTAL REVIEW
Issuance of the Certificate of Compliance is not a project under the California Eiavironmental
Quality Act, and no environmental assessment is required.
ATTACHMENT
September 8, 2006 memo from Stanford Management, Company
CMR: 120:07 Page 2 of 3
PREPARED BY:
Roland A, Rivera
Planner
DEPARTMENT HEAD REVIEW:
Director of Planning and Community Environment
CITY MANAGER APPROVAL:
Assistant City Manager
cc:Stanford Management Company (Jim Inglis)
Stanford University (Larry Horton)
City of Menlo Park (David Boesch)
County of Santa Clara (Ann Draper)
County of San Mateo (Gaye Quinn)
David Newman
Charles Carter
Bill Phillips
Jean Snider
CMR:120:07 Page 3 of 3
Attachment
STANFORD MANAGEMENT COMPANY
September 8, 2006
¯Roland Rivera
City of Palo Alto "
Department of Planning and Community Environment
250 Hamilton Avenue
P.O. Box 10350
Palo Alto, CA 94303
Re:Sand Hill Road Projects Annual Report
August 2005 - July 2006
Dear Roland,
Pursuant to the. Development Agreement between Stanford and the City of Palo
Alto, this report is being, provided for the period from August 1,2005 to July 31,
2006. Development Agreement compliance continues to be strictly adhered to
by Stanford ....
The following highlights the significant activity for the above reporting period:
Stanford West Apartments
The Stanford West Apartments are now in its sixth year of operation.
In accordance with terms of the Development Agreem.ent, during this
period, the number of Below Market Rate units incre~;~d from 63 units to
105 units. Adetailed BMR report is submitted to the Palo Alto Housing
Corporation each year in accordance with the Development Agreement.
¯Stanford has completed the requirement for a viable native grassland
habitat in the area between the Stanford West Apartments and the San
,,... Francisquito Creek, as specified in the Sand Hill Road Corridor Projects
", . Apartments Mitigation Monitoring Progr&m 4.7-3(a-e). The grasslands
"\ .............. have achieved greater than 50% survival after the initial planting of the
native grass/plants in early 2001. Our fifth and final annual monitoring
report was submitted to the city in 2005.
¯The on-site retail st~re, which opened on June 2, 2002, continued to
operate during the reporting period. Stanford provided the subsidization
required to offset the on-going loss from operations.
Sand Hill Road Projects Annual Report
August 2005 - July 2006
Page 2
Senior Housinq ’
As of July 31, 2006, Classic Residence by Hyatt’s independent living units
were 92% occupied. The Skilled Nursing facility was completed by the
end of October 2005, with the first resident taking occupancy in January
2006.
Stanford.. Shoppin.q Center
Stanford Shopping Center was sold to Simon Properties Group. On
November 17, 2003, City Council approved the Assignment and
Assumption.Agreement transferring Stanford Shopping Center
performance responsibilities from Stanford to SPG Center, LLC under the
1997 Development Agreement.
Roads
Construction on the final segment of the Sand Hill Road Improvements
(located primarily within the City of Menlo Park) commenced in April 2004
and was substantially complete by December 2005.
Santa Cruz Avenue between Junipero Serra Boulevard and Sand Hill
Road was closed to traffic for bridge and retaining wall construction in
April 2005, and reopened to traffic on November 4, 2005.
The Roads phase of the Sand Hill Road Project, including Roads within
the City of Palo Alto, City of Menlo Park, County of Santa Clara and
County of San Mateo are now complete and open to the public.
Enclosed is check #540013 in the amount of $2,000, dated September 6, 2006,
for costs incurred during the review and approval period.
Sincerely,
Manager of Design and Construction
cc: Sandy Skaggs/Bingham McCutchen
2770 SAND HILL ROA]3, MENLO PARK, CA 94025 PHONE: 650/926-0200 FAX: 650/854-9268