HomeMy WebLinkAboutStaff Report 238-07ONORABLE CITY COUNCIL City
City Manager’s Reoort
FR~CITY MANAGER DEPART1VI-ENT: PLANNING
AND ~OMNFLq~,II Ty ENVIRONMENT ..........
DATE:
SUBJECT:
MAY 14, 2007 CMR: 238:07
STUDY SESSION STANFORD SHOPPING CENTER - PROJECT
UPDATE
RECOMMENDATION
The purpose of the meeting is to update the City Council and allow for Council review and
comment regarding the Stanford Shopping Center conceptual project plans.
BACKGROUND
At a study session on December 11, 2006, the City Council provided feedback on project issues
related to the proposed expansion of the Stanford Shopping Center and project timing. On
December 13, 2006, the Commission held a Study Session to review the process and timeline for
this project. This feedback was then presented to the City Council at a meeting on December 18,
2006, at which time the City Council 1) authorized staff to commence the process for review of
the project; 2) authorized the city manager to sign an agreement for Simon Property Group to
reimburse the City for costs incurred with processing the application, and 3) authorized the city
manager and other senior staff to initiate discussions and negotiations of a Development
Agreement.
The Commission held another study session on January 24, 2007 and April 25, 2007.
Information provided to the Commission included an overview of the Stanford Shopping Center
and conceptual plans for future development, a review of the Comprehensive Goals, Policies and
Programs related to the project, and a list of issues raised by the community.
Review for this project has been divided into two phases: Phase I (Information Sharing and
Preliminary Area Plan) from December 2006 through July 2007 and Phase II (EIR and
Entitlements), from July 2007 through approximately July 2008. The intent of Phase I is to
collect and synthesize information to share with the applicants, the public, the Commissionl and
the City Council and to identify the key benefits and challenges of each project (the Hospital and
the Stanford Shopping Center expansion). The Phase I activities will help to focus discussion on
key issues of concern during the Phase II entitlement process.
The Shopping Center has not been included as a specific component of the Stanford University
Medical Center Area Plan. However, linkages between the SUMC and the Shopping Center are
an important component of the Area Plan and maps and discussion will identify the Shopping
Center expansion as an "area of influence." A discussion of the linkages between the projects is
contained within this staff report.
City of Palo Alto Page 1
A joint EIR will be prepared for this project and the Stanford Shopping Center (SSC) expansion,
providing extensive analysis of issues as required in the California Environmental Quality Act
(CEQA).
DISCUSSION
Simon Property Group has prepared a Conceptual Project Submittal (Attachment C), including
an updated Project Description, site plans, and renderings of possible future development.
Project Description and Conceptual Plans
The basic project parameters have not been substantially altered since the January 24, 2007
Commission meeting. The shopping center would be expanded by approximately 240,000 square
feet of retail space distributed throughout the site. The current shopping center contains
approximately 1.4 million square feet of retail stores. The project includes new pad buildings
along the front of the SSC towards E1 Camino Real, in the area east of Bloomingdales, and in the
area currently occupied by an older parking deck at the corner of Shopping Center Way and
Arboretum Road. Simon also proposes a 120-room hotel with conference and meeting room
facilities focused primarily on serving Stanford University, the Stanford Medical Center, and the
Stanford Shopping Center. The location of the hotel has not yet been determined but is proposed
to be located either at the corner of Quarry Road and Arboretum Road or at the corner of Quarry
Road and Pear Lane. Two new levels of parking are also proposed on top of the newly
constructed parking garage on the east side of the SSC.
Key Issue and Information Needs
The key issues and information needs identified in the January 24, 2007 Planning and
Transportation Commission staff report (Attachment A) continue to be applicable for the project.
Staff is continuing to work with the project developers to identify issues and information that
will be needed during Phase I1 of the project, expected to begin in August, 2007.
Linkages with Stanford University Medical Center and Off-Site Uses
Although the expansion of the shopping center is not a specific focus of the SUMC Area Plan, an
important component of the plan is the linkages between the SUMC, SSC, and off-site uses in
Palo Alto, such as the transit center and downtown.
The efficient movement of employees, residents, visitors within the SUMC, SSC and adjacent
on- and off-campus areas will be a significant component of the efforts to reduce automobile
traffic as a result of the development. The design of these links in the form of open space,
landscaped areas, and pathways represent an opportunity to design these links as "green
corridors". The roadways, driveways and parking areas are important components of the
vehicular circulation system and should be designed in a manner that promotes the efficient
movement of vehicles. Specific attention should be placed on the movement of emergency
vehicles to and from the SUMC.
important linkages include:
The pedestrian links between the SUMC and Stanford Shopping Center and the
Palo Alto Transit Center and Downtown Palo Alto- E1 Camino Real, as a State
highway, represents a barrier between Stanford and the transit center. The project
City of Palo Alto Page 2
proponents should consider alternatives to the existing pedestrian crosswalk
configuration, including, but not limited to, a pedestrian overpass over E1 Camino Real,
improved pedestrian pathways and way finding in the vicinity of the transit center and
downtown areas.
The pedestrian links between the SUMC and Stanford Shopping Center- The
shopping center contains many uses and services for employees and visitors of the
SUMC. The efficient movement of pedestrians between the SUMC and the shopping
center can reduce vehicle trips within the area.
Sales Tax Data and Comparison to Regional Shopping Centers
In previous presentations to the Commission and City Council, the Simon Group has described
the competitive pressures from other regional shopping centers and how they might affect SSC.
Simon Group has indicated that the proposed development would help to maintain the shopping
center as a regional retail destination and continue the sales tax contributions to the City as other
major centers redevelop and expand.
Attached to this staff report is data from the City’s sales tax consultant, summarizing sales tax
from the following regional shopping centers for the benchmark year (combining the prior four
quarters to rule out anomalies) through 3rd quarter 2006 (Attachment B):
Palo Alto Downtown
Hillsdale Mall
Oakridge Mall
Santana Row
Stanford Shopping Center
Valley Fair Mall
The attached graph is a regional shopping center comparison for the same period. While the
SSC is the highest performing center, sales have increased only slightly for the period included
in the table. SSC in the 3ra quarter benchmark year contributed $5.3 million for 25.4% of total
City sales tax receipts. Other centers have continued to grow, most notably Santana Row and
Valley Fair which have expanded and continue to gain market share. Valley Fair is planning an
additional expansion with a projected 300,000 square foot expansion including the addition of a
new anchor store at the edge of the center.
In addition, the table includes a summary of sales tax data for other downtown areas for the
benchmark year (combining the prior four quarters) through 2nd quarter 2006.
Transit Occupancy Tax
Included in the proposed development project is a 120 room hotel. Based on current Transient
Occupancy Tax (TOT) reports, the average room rate in Palo Alto is approximately $131 per
night with occupancy rates at about 70%. Using the same occupancy rate and room rates for a
hotel of this type, annual TOT could increase by as much as $800,000. If the proposed increase
in the TOT rate from 10% to 12% is adopted, the annual TOT increase would be approximately
$960,000.
City of Palo Alto Page 3
Planning and Transportation Review and Comment
The Commission held a study session on April 25, 2007 to discuss the conceptual project
information and site plans.
The comments from the meeting are summarized as follows:
The Shopping Center should be included in the Stanford University Medical Center Area
Plan.
Consider converting Hoover Pavilion to a hotel;
Consider additional retail buildings or re-orient proposed building to create a longer
"street" within the Shopping Center. Place additional retail along E1 Camino Real with
parking garages behind them, and
Consider the addition of photovoltaic panels at the top level of the parking structures to
create additional covered parking and provide opportunities for alternative energy.
The Commission continued the item to the May 9, 2007 meeting to allow Commissioners to
provide additional comments. Draft minutes from the April 25, 2007 meeting are attached to the
Stanford Medical Center CMR and draft minutes from the May 9, 2007 will be available at the
Council meeting.
Phase I Activities
Staff has been progressing on the Phase I activities in preparation for the project application,
environmental review process, and Development Agreement negotiations for Phase II, which is
expected to begin in August, 2007.
Community Outreach
In addition to the Commission Meeting in January 2007, a. City of Palo Alto sponsored
Community Workshop was held on February 27, 2007 with approximately 40 members of the
community in attendance. Representatives from Stanford Hospital and the Shopping Center
gave presentations and ~responded to questions from the public. The questions from the
community associated with the Shopping Center project were focused primarily on:
Revenue and fiscal impacts to City if the shopping center does not expand;
Mix of merchants and size of stores- a mix of national chains and local businesses
would be ideal;
Traffic generated by the project and how it will impact local streets;
Links between the Hospital, Shopping Center, transit station and downtown;
Parking needs and proposed location for replacement and new parking;
Process for the EIR and how the hospital and shopping center projects will be
reviewed.
Staff expects to schedule a second community workshop in early June to further identify issues
prior to the Commission and City Council meetings in late June and July,
Issue Teams
City of Palo Alto Page 4
Representatives from the City, Stanford and the Shopping Center have formed six (6) issue
teams that meet monthly to discuss critical issues in greater detail. The issues teams are:
Land Use and Open Space
Transportation and Transportation Demand Management
Sustainability
Fiscal Impact
Housing
Utilities
Each issue team is led by a principal City of Palo Alto staff member and is comprised of
individuals from the City of Palo Alto, SUMC and the Shopping Center specialized in that
particular area of interest. The Land Use and Open Space team, as well as the Transportation and
Sustainability teams, have been focusing their efforts on the development of the Area Plan. It is
expected that all issue teams will continue working during the balance of Phase 1 and through
Phase II of the project.
EIR Consultant Selection
The City interviewed environmental consultants and has selected the firm of EIP Associates an
environmental and planning firm located in San Francisco, to prepare the environmental impact
report (EIR). EIP is familiar with the City and has prepared multiple EIRs for the City of Palo
Alto, including the Charleston-Arastradero Corridor Improvements and the Stanford Center for
Cancer Treatment and Prevention Ambulatory Care Pavilion/Parking Structure IV. EIP is
currently in the information gathering phase and will start work on the EIR after a formal
application has been submitted in August, 2007.
RESOURCE IMPACT
Resource impacts to the City will be a key element of the evaluation of the project’s impacts and
benefits, which will be studies during Phase II of the project. Specific resource impacts cannot
yet be determined, as the project has not been formally submitted to the City for review.
All costs of review for the Shopping Center project will be reimbursed by the applicant. A
Reimbursement Agreement has been prepared by the City Attorney’s Office and approved by
Simon Property Group outlining the reimbursable costs that would be incurred during the
preliminary project work in Phase I and subsequent work on the EIR and Development
Agreement in Phase II.
POLICY IMPLICATIONS
The Comprehensive Plan policies and programs relevant to the development of the Shopping
Center have been identified in the January 24, 2007 Planning and Transportation Commission
staff report (Attachment A).
NEXT STEPS
A community meeting is proposed in early June to further identify issues and priority policies
prior to the Commission and Council’s subsequent review of the Shopping Center. Staff will
City of Palo Alto Page 5
continue to work with Simon Property Group and will return to the Commission in June and to
the City Council in July with an updated conceptual plan.
ENVIRONMENTAL REVIEW
An Environmental Impact Report will be prepared upon submittal of a formal application for the
development project and amendment to the Area Plan, anticipated in August 2007.
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
STEVEN TURNER
Seni~lann;/~
Dir~om~d EnvironmentFRANI~I~ENEST
City Manager.
ATTACHMENTS
A.January 24, 2007 Planning and Transportation Commission Staff Report
B.Sales Tax Data Charts
C.Conceptual Project Submittal (Council only)
COURTESY COPIES
Art Spellmeyer, Simon Property Group
John Benvenuto, Simon Property Group
Geno Yun, ELS Architecture and Urban Design
William T. Phillips, Stanford Management Company
Jean McCown, Stanford University Public Relations Office
Charles Carter, Stanford University Planning Office
City of Palo Alto Page 6
ATTACHMENT A
PLANNING &TRANSPORTATION
DIVISION
STAFF REPORT
TO:
FROM:
DATE:
SUBJECT:
PLANNING & TRANSPORTATION COMMISSION
Steven Turner, Senior Planner
Whitney McNair, Contract Planner
January24,2007
DEPARTMENT: Planning &
Community Enviromnent
Study Session for the Stanford Shopping Center Expansion Project
PURPOSE OF THE STUDY SESSION
The purpose of the study session is to allow for early Planning and Transportation Commission
(Commission) review and input regarding the benefits and challenges of the proposed project,
information needs, and public outreach efforts for the Stanford Shopping Center expansion
project.
BACKGROUND
In 2005, the Mayor’s Retail Attraction Committee (RAC) identified several ways to attractand
retail local businesses. One element included enhancing Stanford Shopping Center (SSC) mad
assisting the Center to become more competitive to other regional shopping centers. The RAC
and City Council generally indicated support for helping maximize the Shopping Center’s
potential for expansion and revenue enhancement to the City. The City Council has also
identified the Shopping Center expansion as a key potential source of revenue as part of the
City’s efforts to add on-going revenue.
The SSC comprises the area located between Sand Hill Road, E1 Camino Real, Quarry Road and
Vineyard Lane. The site includes a total of 70 acres, with 54 acres in the main shopping center
area and an additional 15.88 acres in the area between Arboretum Road and Vineyard Lane. The
area is zoned Community Commercial (CC). A vicinity map is provided as Attachment A.
At the December 11th study session, the City Council provided feedback on issues and project
timing. On December 13, 2006, the Commission held a Study Session to review the process and
timeline for this project. This feedback was then presented to the City Council at a meeting on
December 18, 2006, at which time the City Council 1) authorized staff to commence the process
for review of the project; 2) authorized the city manager to sign an agreement for Simon Property
City of Palo Alto Page
Group to reimburse the City for costs incurred with processing the application, and 3) authorized
the city manager and other senior staffto initiate discussions and negotiations of a Development
Agreement.
DISCUSSION
The Simon Group is proposing to expand Stanford Shopping Center (SSC) with approximately
240,000 square feet of retail expansion space distributed throughout the site. The current shopping
center contains approximately 1.4 million square feet of retail stores. The project includes new pad
buildings along the front of the SSC towards E1 Camino Real, in the area east of Bloomingdales, and
in the area currently occupied by an older parking deck at the comer of Shopping Center Way and
Arboretum Road. Simon also proposes a 120-room hotel with conference and meeting room
facilities focused primarily on serving Stanford University, the Stanford Medical Center, and the
Stanford Shopping Center. The location of the hotel has not yet been determined but is proposed to
be located either at the comer of Quarry Road and Arboretum Road or at the comer of Quarry Road
and Pear Lane. Two new levels of parking are also proposed on top 0fthe newly constructed parking
garage on the east side of the SSC. Conceptual project plans are included as Attachment B.
City of Palo Alto Comprehensive Plan Policies and Programs
The City’s Comprehensive Plan has several policies and program that will help shape the review of
the Project. These include:
Policy B-22: Work with Stanford University to ensure that the Stanford Shopping Center is
sustained as a distinctive, competitive, high quality regional shopping center.
Policy L-26: Maintain Stanford Shopping Center as one of the Bay Area’s premiere regional
shopping centers. Encourage any new development at the Center to occur through infill,
including development on existing surface parking lots.
Program L-23: Identify strategies to reuse surface parldng lots and improve pedestrian and
transit connections at Stanford Shopping Center.
Program L-24: Maintain a Stanford Shopping Center development cap of 80,000 square feet of
additional development beyond that existing on June 14, 1996.
Policy L-27: Pursue redevelopment of the University Avenue Multi-modal Transit Station area to
establish a link between University Avenue/Downtown and the Stanford Shopping Center.
Key Issues and Information Needs
The City Council, the Commission and the community have voiced concerns at the previous
study sessions that include:
Land Use/Intensity- What is the appropriate 1eve1 of intensity to respond to retail trends
while maintaining compatibility with the surrounding Palo Alto community?
b)Urban Design- How would the project contribute to a compact, pedestrian oriented
development with a mix of uses that would reduce reliance on automobiles?
City of Palo Alto Page 2
c)
d)
e)
13
g)
Height- How would the project maintain the scale and character of the City and avoid
abrupt changes in scale and density between residential and non-residential areas? How
would off site views be protected?
Transportation/circulation!transit- How will the project promote and encourage walking,
biking and public transit use? Analysis and findings should incorporate:
¯Traffic impacts and mitigation
¯Goal of"no net new trips"
¯Promotion of pedestrian and bicycle connections
¯Expansion of the shuttle and/or transit programs
¯Effective TDM program
¯Linkages to University, Medical Center, Transit Center, and Downtown- clearly
defined and designed connections between the project, adjacent uses and nearby
public services for pedestrians, bicycles public transit and automobiles;
Housing- How much additional housing would be required to serve the new employees at
the expanded retail areas? Where would it be located?
Sustainability and Green Building- How would the project achieve specific sustainability
and green-building goals that are consistent with the City’s sustainability policies;
Open Space- How would the project protect or provide for open space? Could additional
hillside lands be protected as mitigation for the increased intensity if the project is
approved?
Public Services- How would the project address the increase in demand for water, gas
and electric utilities, schools, parks and libraries?
Staff and the City’s consultants are beginning to prepare information to address many of these
issues, including:
a)
b)
c)
d)
f)
Traffic counts at all affected intersections in Palo Alto and Menlo Park, with comparisons
to projections made at the time of the Sand Hill Road Corridor Project and EIR; .
Economic/market analysis of the shopping center viability and economic benefits, and of
the feasibility and type of hotel;
Analysis of employment projections and potential housing demand;
Schematic options for enhanced connections to surrounding areas, including Stanford
Medical Center, Palo Alto Transit Center and downtown; and
Availability of utilities and other public services.
Many of these issues will be analyzed as part of the EIR. Staff is expected to have preliminary
traffic information and analysis at the next Commission meeting in March.
Proiect Timeline
An updated project timeline is contained in Attachment C. Based on input from the City Council
and the Commission the following changes have been incorporated:
The initial Commission Study Session was moved forward to January 24, 2006;
The number of Architectural Review meetings in Phase II has been reduced from three to
two;
City of Palo Alto Page 3
An additional City Council Study Session (October 2007) was added prior to release of
the draft EIR in Phase II, prior to the initiation of the development agreement
negotiations; and
Other wording changes were incorporated per Commission and Council direction.
Community Outreach
A community kickoff meeting is scheduled for February. The meeting would be a general
meeting open to all members of the community and will include a project overview by the
applicant, an overview of the timeline by City staff and an open period for questions and
answers, and identification of issues.
NEXT STEPS
A request for proposals (RFP)has been sent to environmental consulting firms to solicit
proposals to prepare a joint Environmental Impact Report (EIR) to also address the Medical
Center expansion. Representatives from Simon Property Group are expected to submit a
conceptual application in February/March for this project, including proposed land use and site
modifications. A Community Meeting is scheduled for February. A second Commission study
session is tentatively scheduled for March and will include a project update and available traffic
and other relevant info for this project and the Stanford Medical Center expansion.
ATTACHMENTS
A.Vicinity Map
B.Conceptual Plans
C.Updated Project Timeline
COURTESY COPIES
City Council
Art Spellmeyer, Simon Property Group
John Benvenuto, Simon Property Group
Geno Yun, ELS Architecture and Urban Design
William T. Phillips, Stanford Management Company
Jean McCown, Stanford University Public Relations Office
Charles Carter, Stanford University Planning Office
PREPARED BY:Steven Turner, Senior Plmmer
Whitney McNair, Contract Planner
DEPARTMENT/DIVISION HEAD APPROVAL: ~ ~,,1N~i_ _~~
Curtis Williams, Assistant Director
City of Palo Alto Page 4
ATTACHMENT B
oo’ o
ooo
oo
ooo
oo
ooo