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HomeMy WebLinkAboutStaff Report 240-07City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE:MAY 14, 2007 CMR: 240:07 SUBJECT: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 PROPERTY KNOWN AS 3401, 3415, AND 3445 ALMA STREET FROM PC PLANNED COMMUNITY 1362 TO PC PLANNED COMMUNITY. RECOMMENDATION Staff recommends that the City Council adopt the first reading of an ordinance (Attachment A) that approves Planned Community (PC) zoning for the three properties located at 3401, 3415, and 3445 Alma Street, subject to public benefits and conditions of approval, as outlined by the City Council at its April 16, 2007 meeting, and refer the project to the Architectural Review Board and Planning and Transportation Commission for site development plan review. BACKGROUND On April 16, 2007, the City Council conducted a public hearing regarding the proposed Plmmed Community (PC) zoning for the site. The Council approved a motion to adopt the Mitigated Negative Declaration and to approve the PC zone based on the developers’ proposal, with the following modifications: 1) reduce the retail square footage by reinstating the two second floor BMR units in the. large building; 2) increase the grocery store size to a minimum of 10,000 square feet, including the basement and ground floor; and 3) require dedicated parkland and the community room. The City Attorney advised the Council that staff would need to come back with a draft ordinance for first reading, since the ordinance before the Council on the April 16 reflected the Planning and Transportation Con~nission’s recommendation. DISCUSSION Staff has prepared an ordinance (Attachment A) rezoning the site to a Planned Community (PC) designation, subject to conditions outlining the development parameters of the site, specifying public benefits associated with the PC zoning, and subject to site development review and CMR: 240:07 Page 1 of 4 preparation of a Below Market Rate (BMR) agreement. The April 16 Council action comprised direction to prepare the ordinance for first reading, using the applicant’s proposal (Attachment B) as the basis for the development parameters, and consistent with the provisions of Chapter 18.68 (Planned Community District) of the City’s Zoning Ordinance. PC Ordinance Development Parameters and Conditions The draft PC ordinance includes the following development parameters and Conditions, pursuant to staff’s understanding of the applicant’s proposal and the Council motion. 1.Commercial Square Footage: A minimum of 24,533 square feet of commercial space would be permitted, not including the community room. The breakdown would include: a. Main retail building with Alma Street frontage: 17,300 square feet ground floor retail and 3,507 square feet retail/storage in basement. b. Two detached buildings of 1,863 square feet each, for a total of 3,726 square feet of retail/commercial/office uses. c. Allowable uses in the two detached buildings include retail services, eating and drinking, personal services, banks and financial services, day care, general business services, office uses (medical, professional, and/or general), private educational facilities, and commercial recreation. 2.A 1,330 square foot community room, to be used for community or non-profit purposes, would be required on ~he second floor of the main building. 3.A minimum 10,000 square foot grocery store (part of the retail square footage) along the Alma Street frontage would be required, including the 3,507 square foot retail!storage area in the basement. 4.The front setback on Alma is permitted at less than 30 feet. 5.Thirty-eight (38) single-family small lot residences would be allowed, including along the transition areas adjacent to Emerson and Ramona Street homes. 6. Fourteen below market rate residential rental units would be required on the second floor of the main building, above retail. 7. A total floor area ratio of 0.54 would be permitted for residential uses (including the BMR units) on the site. 8. Parkland of approximately 8,900 square feet is required to be dedicated for public use (note: the applicant’s project description and program statement have consistently indicated that the parkland to be dedicated is 8,904 square feet, but the applicant in the past week noted that the main park area reflected on the plan is actually only 7,600 square feet). 9. Commercial parldng requirements will be calculated at 1 space per 250 gross square feet and the retail/storage basement area of the grocery store at 1 space per 1,000 gross square feet. No additional parldng is required for the community room 10. Commercial development will comply with criteria sufficient to obtain Leadership in Energy and Environmental Design (LEED) Silver certification. 11.Offsite improvements on Alma Street shall be provided as shown in the site plan (Attachment E), including the proposed reconfiguration of parking. CMR: 240:07 Page 2 of 4 PuNic Benefits Staff has identified for project: Council consideration thee following public benefits provided by the 1.Provision of a minimum 10,000 square feet of grocery retail space 2.Parkland dedication and improvement 3.Fourteen Below Market Rate housing units provided as rentals 4.Provision of a community meeting room 5.Leadership in Energy and Environmental Design (LEED) Silver green building certification 6. Off-site improvements along Alma Street and reconfiguration ofparldng south of the site The public benefits are identified in the draft ordinance, and should be approved or modified by the Council. Site Development Plan Review The PC ordinance specifies, consistent with the provisions of Chapter 18.68 (Planned Community District), that site development plan review is required by the Architectural Review Board (ARB) and Planning and Transportation Commission (P&TC) prior to final Council action. In particular, Sections 18.68.065(b) and (c) provide that, for any PC: "(b)If the planning commission acts favorably in its initial review of the PC application, the development plan shall be submitted to the architectural review board for review, except in the case of single-family and accessory use. In this phase, a detailed plot plan, landscape development plan, and design plan of the development plan are required. The architectural review board shall make a recommendation on the development plan based on the findings for architectural review in Section 18.76.020(d). (c)The development plan as approved by the architectural review board is then returned to the planning commission for final planning commission review and recommendation before being submitted to the city council for final action." In this case, the Council has modified the Commission’s recommendation prior to review of the site plan by ARB, the P&TC and City Council. The development parameters set forth above indicate locations of the main retail building, transitional housing adjacent to the residences on Emerson and Ramona Streets, and BMR units on the second floor of the retail building. Other site planning details, such as for the remaining residences, parldand, and site circulation are left to the site development review process. In addition, any deviation from Planned Community regulations for setbacks or daylight planes would require approval of Design Enhancement Exceptions (DEEs) or Variances. Below Market Rate (BMR) Agreement The ordinance also includes a provision to require a BMR agreement for the project with the approval of the site development plan by the City Council. A BMR agreement is necessary to determine the value of the affordable housing commitment, to verify compliance with City BMR CMR: 240:07 Page 3 of 4 policy, and to assure that Palo Alto Housing Corporation will accept the operation and maintenance responsibilities for the units. A letter agreement would be required at the time of site development plan approval, and the binding legal agreement would be required prior to approval of the final subdivision map for the project. Resource Impacts, Policy Implications, and Environmental Review Resource Impacts, Policy Implications, and Environmental Review for the project were provided in the April 16, 2007 City Manager’s Report (Attachment C). This revised ordinance does not create any changes to the previously stated impacts or environmental review. PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: CURTIS WILLI-AM~ ssig . JS ~E~E CMSLIE Di~ct,or)of Planr?ing and~unity Environment Assistant City Manager ATTACHMENTS A.Draft Planned Community Ordinance B.Applicant Proposal Submitted at April 16, 2007 City Counci! meeting C.April 16, 2007 City Manager’s Report (w/o attachments) D.Revised Site Nan, dated April 16, 2007 COURTESY COPIES Patrick Costanzo, Jr., Executive Vice President, Greenbriar Homes Communities, Inc. John McNellis, McNellis Partners, LLC James Baer, Premier Properties David L. Van Der Wilt _ Sheri Furman Jay Hammer Marilyn Keller Martin Stone CMR: 240:07 Page 4 of 4 NOT YET APPROVED ATTACHMENT A ORDINANCE 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 PROPERTY KNOWN AS 3401, 3415 AND 3445 ALMA STREET FROM PC PLANNED COMMUNITY 1362 TO PC PLANNED COMMUNITY The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. (a) Trestle Alma, LLC, a California limited liability corporation, and Greenbriar Homes Communities Inc., a California corporation, (collectively, "the Applicant") formally applied on July 18, 2006 to the City for approval of a rezoning application (the "Amendment") to a Planned Community (PC) district for three properties located at 3401, 3415 and 3445 Alma Street (the "Subject Property") to accommodate the uses set forth below. (b) The Planning Commission, after duly noticed public hearings held March 8 and 28, 2007, reviewed, considered, and recommended approval of the draft Mitigated Negative Declaration and recommended that Section 18.08.040 (the Zoning Map) of the Palo Alto Municipal Code be amended to rezone the Subject Property to Planned Community to permit construction of the proposed project depicted on Attachment A (the "Project"), as revised by conditions included in the Planned Community allowable land uses and required development standards, and subject to provision of the public benefits outlined.below. (c) The Council, after due consideration of the proposed Project, the analysis of the City Staff, the Mitigated Negative Declaration, and the modification of the proposed Conditions recommended by the Planning Commission, finds that the proposed Ordinance is in the public interest and will promote the public health, safety and welfare, as hereinafter set forth. The Council finds that (1) the Subject Property is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow for the Project; (2) development of the Subject Property under the provisions of the PC Planned Community District will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts, as set forth in Section (4)(c) hereof; and (3) the use or uses permitted, and the site development regulations applicable within the proposed district are consistent with the Palo Alto Comprehensive Plan, and are compatible with existing and potential uses on adjoining sites or within the general vicinity. SECTION 2. Section 18.08.040 of the Palo Alto Municipal Code, the "Zoning Map," is hereby amended by changing the zoning of Subject Property from "PC Planned Community 1362" to "PC Planned Community __" 070509 syn 0120227 NOT YET APPROVED SECTION 3. The City Council hereby finds with respect to the Subject Property that the Project comprises a mixed use development, including: (a) 17,300 square feet of ground floor retail space in a mixed use building along the Alma Street frontage; (b) 3,500 square feet of basement office, storage and service area to support the retail space in the mixed use building; (c) uses; Two separate commercial buildings comprising 3,720 square feet of commercial (d)A 1,330 square feet community meeting room; (e) floor retail; Fourteen (14) Below Market Rate (BMR) rental apartments above the ground (f)Thirty-eight (38) single-family detached residences; (g) Three driveways on Alma Street and driveway access to Ramona Street for three single-family units with frontage on Ramona Street; (h) Alma Street frontage improvements to reconfigure the frontage road between East Meadow and the Project to provide for one-way, northbound travel; (i) A pedestrian pathway along the southern perimeter of the site connecting Alma Street to Ramona Street; (j) A public park area, to be privately maintained, designated for passive type recreational uses; and (k) Privately owned and maintained streets internal to the site. SECTION 4. A Development Plan for the Subject Property, pursuant to Palo Alto Municipal Code Section 18.68.120, shall be prepared and reviewed according to the Site and Design Review process outlined in Section 5 below. The Development Plan shall be subject to the following allowable and required uses, development standards, provisions of public benefits, and conditions: (a)Permitted, Conditional, and Required Uses shall be allowed and limited as follows: (1)All permitted and conditionally permitted uses allowed in the Neighborhood Commercial (CN) zone district as provided in Chapter 18.16 of the Zoning Ordinance, and, in addition, mixed commercial and residential uses as provided in Sections 3 and 4(d)(8)of this Ordinance are permitted; 070509 syn 0120227 2 NOT YET APPROVED (2)Within the mixed-used building ("Mixed Use Building") a grocery store with a minimum ground floor size of 6,500 square feet and total minimum size of 10,000 square feet, (including approximately 3,500 square feet of basement for office, storage and service area supporting the grocery store) shall be required; (3)In addition to the uses permitted and conditionally permitted under the CN zone, the following uses shall be permitted in the two (2) Neighborhood Commercial Buildings (approximately 3,720 sf): Eating and Drinking Services, Retail Services, Day Care, Banks and Financial Services, General Business Services, Neighborhood Business Services, Medical Offices, Professional and General Business Offices, Private Educational Facilities, and Commercial Recreation; and (4) Community Room Uses. (b) Development Standards for the site shall comply with the standards prescribed for the Planned Community (PC) zone district (Chapter 18.68) and as modified in Section 4(d) below. (c) Public Benefits Development of the site under the provisions of the PC Planned Community District will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts. The Project includes the following public benefits that are inherent to the Project and in excess of those required by City zoning districts: (1)Within the Mixed Use Building, a minimum of 10,000 .square feet (including a minimum ground floor of 6,500 square feet and approximately 3,500 square feet of basement for office, storage and service area supporting the grocery store) shall be reserved for grocery store retail uses in perpetuity; (2)Park land dedication and improvement of approximately 8,900 square feet (0.2 acres); (3)Mixed Use Building constructed to the Leadership in Energy and Environmental Design (LEED) Silver standard; (4)Below Market Rate (BMR) housing provided as fourteen (14) rental units, the value of which will exceed what would otherwise be required by the City’s BMR Program; (5)Provision of an approximately 1,330 square foot community meeting room (for community or nonprofit use) on the 2nd Floor of the Mixed Use Building; and 3 070509 syn 0120227 NOT YET APPROVED (d) (6)Off-site Improvements along Alma Street and reconfiguration of parking south of the Subject Property, according to an approved Development Plan. Special Conditions (1)Variances and DEEs. A Variance or Design Enhancement .Exception (DEE) is required for all exceptions to the Planned Community (PC) zone standards prescribed in Section 18.68.150 of the Zoning Code, other than proposed development that substantially conforms to the conditions of this Section 4(d) or that is depicted in an approved Development Plan. (2)Below Market Rate (BMR) Housing Requirement. The Project shall provide fourteen (14) BMR rental housing units. (3)The BMR units shall be second floor units above commercial uses in the Mixed Use Building. The units shall be in conformance with the City’s BMR program requirements and a BMR Agreement for the Project shall be approved by the City prior to final map approval; (4)Withi~ the Mixed Use Building, a minimum of 10,000 square feet (including a minimum ground floor of 6,500 square feet and approximately 3,500 square feet of basement for office, storage and service area supporting the grocery store) shall be reserved for grocery store retail uses in perpetuity; (5)Parkland of approximately 8,900 square feet (0.2 acre) shall be provided as depicted in a Development Plan approved pursuant to according to the Site and Design Review process outlined in Section 5 below; (6)The Mixed Use Building shall have a gross ground floor area of approximately 17,300 square feet, all of which shall be devoted to retail uses in perpetuity. A minimum of 6,500 square feet of such area shall, as set forth in Section 4(d)(4), be devoted to grocery store retail uses in perpetuity; (7)Total commercial development shall comprise approximately 24,530 (excluding community room) square feet in the following configuration: Approximately 17,300 gross square feet of ground floor retail in the Mixed Use Building located adjacent to the Alma Street frontage; ii.Approximately 3,500 square feet of retail/office/storage in the basement of the Mixed Use Building; 070509 syn 0120227 4 NOT YET APPROVED iii.Approximately 3,720 square feet Neighborhood Commercial Space (2 two-story buildings, approximate square footage includes " both first and second floors). (8)The community room shall comprise approximately 1,330 square feet on the 2nd floor of the Mixed Use Building and shall be used for community or non-profit uses; (9)The Mixed Use Building shall not be required to meet the 30-foot special setback along Alma Street, and shall be set back in accordance with a Development Plan approved pursuant to according to the Site and Design Review process outlined in Section 5 below; (10)The project shall provide for a maximum of 38 square feet detached homes on small lots, including along the transition areas to Emerson and Ramona Street homes. The housing types and sizes shall be in substantial conformance with that shown in Attachment A, and shall be located in accordance with an approved Site Development Plan. (1!) Residential FAR shall be allowed at .54; garages shall not count in FAR; (12)The Project shall not be subject to the Quimby Act parkland, dedication ordinance (Municipal Code § 21.50.010 et seq.); and (13)Required parking shall be calculated at four (4) parking spaces per 1000 square feet of retail area, one (1) parking space per 1000 square foot of retail basement area, and no parking spaces for the community room. SECTION 5. Site and Design Review and Approval (a) Site and design review of the Development Plan for the Project shall be required as follows: Site and Design Review of the Development Plan and Architecture shall be reviewed by ARB, and then by the Planning and Transportation Commission, and then by City Council. The City Council’s decision is final. // // // // // // // 070509 synO120227 NOT YET APPROVED SECTION 6. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Assistant City Attorney Mayor City Manager Director of Planning and Community Environment 6 070509 syn0120227 April 15, 2007 Re:3401, 3415, and 3445 AlmaStreet ALN~A PLAZA ATTACHMENT B After analyzing our project this past week to identify ways we could accommodate anymore retail on the site, we have come up with the following proposal: The Alma Pl~iza Site at 15% retail would require 27,531 sf of retail-. Our current design includes 24,000 square feet with some of that area other than at ground floor level. Ground FloorPrimary Retail Building Basement Primary Retail Building: Community Room 2~a Floor: Secondary Building 2 Floors: TOTAL: 17,300 sf 3,507 sf 1,330 sf 1,863 sf 24,000 sf We have come up with a way to increase the retail to the 27,531 square feet. We would accomplish this with two changes: Removing two BMR’s from the second floor of the main building.and eliminating the community room and replacing these uses with second floor retail (2,998 sf) We will also remove a house and add a second two-story Neighborhood Commercial building across the parking lot, adjacent to the current proposed building (1,863 sf) Thus the revised retail provided will be: Ground Floor Primary Retail Building Basement Primary Retail Building: 21~d Floor Retail in Main Building: Two Secondary Building 2 Floors: TOTAL: 17,300 sf 3,507 sf 2,998 sf 3,726 sf 27,531 sf To accommodate this revision, we will need the parking ratio to be 4 per 1000 sffor all of the retail and 1 per 1000 for the basement retail storage/office. This results in 96 spaces for the retail and 3 spaces for the basement retail for a total of 99 spaces. We are comfortable that this will be adequate parking for the proposed uses. This revised proposal provides the City and community with the amount of retail space requested by the P&TC and does it in a manner that we will embrace and allows our current design to proceed. We ask your support for this revised plan and for our application with an approval incorporating the suggested conditions below on the following page. Please call us with any questi0nsl John McNellis (650) 853-3904 Patrick Costanzo, Jr. (408) 888-4224 ALMA Requested Council Motion ®Adoptthe PC Zone as proposed Accept the. Retail of 27,531 square feet as proposed o 17,300 square feet Retail retained in perpetuity o 3,507 sc~uare feet Retail/Storage in Basement o 3,726 square feet Neighborhood Commercial Space o 2,998 square feet Second Floor Retail Require a grocery store in the retail (minimum size to be 8,500 sf; 3,507 square feet of basement to be counted towards minimum size) Proposed setback at Alma for Retail acceptable (relief from 30 foot special setback) Allowed uses in Neighborhood Commercial Buildings (3726 sf) and Second Floor Retail (2,998 sf): Eating and Drinking Services, Retail Services, Day Care, Banks and Financial Services, General Business Services, Neighborhood Business Services, Personal Services, Medical Offices, Professional and General Business OtTlces, Private Educational Facilities, and Commercial ReCreation Accept Site Plan as proposed - site plan and architecture shall go to ARB then to P&TC then to Council for review of being in conformance with current site plan Accept housing types, sizes, and layout as proposed - variety of: traditional single family detached homes along Ramona(3), small-lot three-story detached homes along Stanford Villa boundary, in center of site, and along Emerson boundary(38), and rental BMR apartments above retail (12) ® Allow up to .54 FAR for residential to accommodate additional BMRs ®The retail portions of the project may be parcelized- maintenance to be handled through a reciprocal maintenance agreement if not all owned by the same owner Accept Park as proposed- in proposed location with.proposed size Uphold City’s past practice of applying City’s regulations in affect at the time an application is submitted- i.e. do not require project to be subject to the Quimby Act ® Allow Retail parking ratio at 4 per 1000 sf and Retail Basement ratio at 1 per 1000 sf Public Benefits identified: Grocery Store (minimum 8500 sf) 12 Rental BMR units above retail Improved Open Space Park Retail constructed to LEED Silver requirements Offsite Improvements on Alma- including the reconfiguration of parking south of property Attachment C TO: FROM: DATE: HONORABLE CITY COUNCIL CITY MANAGER APRIL 16, 2007 DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 194:07 SUBJECT:3401, 3415, AND 3445 ALMA STREET (ALMA PLAZA): CONSIDERATION OF AN ORDINANCE TO REZONE TO A PLANNED COMMUNITY (PC) DISTRICT TO ALLOW DEMOLITION OF THREE BUILDINGS, INCLUDING THE VACANT ALBERTSON’S STORE, AND CONSTRUCTION OF A MIXED USE PROJECT INCLUDING 24,000 SQUARE FEET OF RETAIL/COMMERCIAL SPACE, 14 BELOW MARKET RATE APARTMENTS, AND 39 SINGLE FAMILY RESIDENCES; REFERRAL OF THE PROJECT FOR SITE DEVELOPMENT PLAN REVIEW TO THE ARCHITECTURAL REVIEW BOARD;AND APPROVAL OF A MITIGATED NEGATIVE DECLARATION. RECOMMENDATION The Planning and Transportation Commission (PT&C) and staffrecommend that the City Council deny the request for a rezoning application to a Planned Community (PC) district for the three properties located at 3401, 3415, and 3445 Alma Street as submitted and instead adopt an ordinance (Attachment A) that approves a PC zone with the Neighborhood Commercial (CN) uses and standards and site and design review incolporated by reference, subject to public benefits and conditions of approval outlined by the P&TC. Specific Council actions would include: 1.Approval of a Mitigated Negative Declaration (Attachment J) for the project at 3401, 3415, and 3445 Alma Street, with a finding that the project will not result in significant envirolm~ental impacts; and CMR: 194:07 Page 1 of 7 2.Granting a Zone Change from the existing Planned Community (PC-1362) district to a new Planned Community (PC) district, as outlined in Attachment A. BACKGROUND On March 8 and March 28, 2007, the P&TC conducted public hearings to review the proposed Planning Community zone change application. On March 8, 2007, P&TC indicated that (1) more retail area is needed, such as a minimum 15% of the site area comparable to the CN zone regulations, (2) housing should be better integrated with the commercial area with more market rate apartments above retail and some shared wall duets for the single family homes, (3) the open space should be more integrated and the park should be larger, and (4) pedestrian connectivity should be improved and a more inviting gateway provided, with a concern over the proposed zero front setback without corresponding provision of improved open space behind the retail area. On March 28, 2007, the P&TC recommended approving a rezoning to a PC district with the CN uses and standards and site and design review incorporated by reference with the following additional conditions: ¯Grocery store be included with a minimum size of 15,000 sq. ft; ¯Parkland~be provided to the level required by the Quimby Act and located adjacent to retail; ¯Minimum of. 15 FAR ground floor retail be maintained over the site as a whole in perpetuity; ¯Housing design to create a fluid transition between mixed use, housing and open space and to provide a greater variety of housing types; °The mixed use portion of the development to be one parcel (excluding the areas dedicated as public open space); ¯Pedestrian access to accommodate both pedestrians and bicyclists; and ¯Option to include office space in the vertical mixed use component of the project. The P&TC identified the following items as the acceptable public benefits set forth in the proposal: °Quimby Act minimum park land dedication; °LEED Silver certification; ¯Additional BMR as rental units; and ¯Community meeting room (to serve a community, not only art studio) The Palo Alto Child Care Advisory Council (PACC), who attended both P&TC hearings, has suggested that an appropriate public benefit for this development, with its BMR housing component, could be a donation to the PACC trust fund for childcare subsidy purposes. The P&TC also noted several project concessions that the City should consider granting in exchange for the public benefits: ° Relief from the 30-foot front special setback; CMR: 194:07 Page 2 of 7 Additional FAR for rental BMR units; Counting storage and office basement space in the grocery store as ground floor retail; and Overall intensity of housing in a neighborhood commercial center. The verbatim minutes of the P&TC March 8 and March 28 meetings are included with this report as Attachments C and D, and the P&TC staff reports are included as Attactunents E and F. Prqiect Description The applicant proposes a conceptual plan for redevelopment of the site that includes the following revisions from the earlier proposal: The amount of commercial retail area increases from 19,200 square feet to 24,000 square feet. This includes: a.Mixed use building ground floor retail (17,300 square feet) b.Basement office, storage and service area (3,507 square feet) c.Community room (1,330 square feet) d.Smaller commercial/neighborhood office space (1,863 square feet) 2.Below Market Rate (BMR) housing remains at fourteen units located on the second floor of the mixed use building with tenant underground parking. The number of single family residences is reduced from forty-five to thirty-nine units. The detached, small lot, single family residences are a mix of two- and three-stories and range in size from t,817 square feet to 2,416 square feet, not including the garage square footage. 4.The number of proposed parldng spaces is increased by fifty-three spaces for commercial retail shoppers, residents and guests of the BMR and single family housing. 5.Site amenities, including a dedicated, improved and maintained public park area, gathering spaces and a community room in the mixed use building. The applicant has provided additional project information in their Development Program Statement and Project Description letter (Attachment B). DISCUSSION Neighborhood Commercial (CN) Zoning At the March 8, 2007 P&TC hearing, several Commissioners provided direction to use the current CN standards as a baseline for comparison of the proposal as a "neighborhood center." Staff also recommends that rezoning to a PC district with conditions including compliance with the allowable uses and development standards of the Neighborhood Commercial (CN) zoning district rather than the applicant’s proposed PC district. This would assure a greater quantity of retail than the applicant’s PC proposal and would provide greater certainty that a future development would accommodate a neighborhood center, while also providing for a mixed use CMR: 194:07 Page 3 of 7 project. A mixed use project would require Site and Design Review if more than four residential units are proposed. Under the CN criteria, the existing Alma Plaza center could be renovated or rebuilt as a conforming use. The CN neighborhood commercial district is intended to create and maintain neighborhood shopping areas primarily accommodating retail sales, personal services, eating and drinking establishments, and office uses of moderate size serving the immediate neighborhood, under regulations that will assure maximum compatibility with surrounding residential areas. The adjacent medical office property to the south is zoned Neighborhood Commercial. The Comprehensive Plan land use designation for the three subject properties is Neighborhood Commercial, so the use of the CN zone district and development standards would be consistent with the Comprehensive Plan designation. The following table compares the proposed project to the current CN standards for the 4.2 acre (183,546 square-feet) site. The project would need to be modified in regards to Maximum Residential Floor Area and Minimum Mixed Use Ground Floor Commercial Floor Area regulations in order to comply with the CN standards. Residential Density (net) Maximum Residential Floor Area (FAR) Maximum Non-Residential Floor Area (FAR) Minimum Mixed Use Ground Floor Commercial Floor Area (FAR) Total Floor Area Ratio (FAR) CN Mixed Use Zoning Standard 15 units / acre 0.5:1 0.4:1 Minimum 15% (0.15) FAR = 27,531 sq. ft. required 0.9:1 Proposed Project 12.6 units / acre 0.54:1 (.07 BMR units + .47 SFD’ s) 0.13:1 18,250 s.f. of ground floor commercial FAR =10% (0.10) FAR 0.67:1 ALTERNATIVES If the P&TC recommendation to approve the project with conditions outlined previously is not accepted by the applicant, then no project (PC) is approved. Alternatives to the P&TC recommendation include: 1.Granting a Zone Change from the existing Planned Community (PC-1362) district to a new Planned Community (PC) district with conditions of approval that would be acceptable to the applicant. This would require the Council modifying the PC Ordinance to reflect these changes to the conditions. The PC ordinance would not return to the P&TC but the Site and Design review would be reviewed by the Commission, ARB and Council; 2. Initiating a Zone Change from the existing Planned Community (PC-1362) district to a CN zone (see below); or CMR: 194:07 Page 4 of 7 3. Denial, and await a future application. If the Council initiates a zone change to CN as described in Alternative 2, the rezoning process is outlined in Section 18.98 of the Palo Alto Municipal Code: ¯The City Council or Ptanning and Transportation Commission (P&TC) directs the Planning Director to initiate a zoning amendment. ¯The P&TC sets a date for a regular or special meeting of the P&TC, including a public hearing and notice to the property owner and surrounding property owners. The Commission may recommend to the City Council approval of the rezoning, modification of the area to be rezoned, application of more or less restrictive zoning, or denial of the rezoning. ¯The decision of the Commission is forwarded to the City Council, including the Commission’s findings and determinations for the requested zone change. Upon notice and a punic hearing, the City Council takes final action regarding the zoning. ECONOMIC IMPACT While Alma Plaza is currently a revenue generator for the City, the proposed project would renovate and revitalize the site, generating additional one-time and ongoing revenues to the General Fund. Specifically,_the one-time revenues would include documentary transfer taxes and development impact fees, totaling in the $600,000 to $640,000 range. The additional annual revenues would include property taxes, sales taxes, and utility user taxes, totaling in the $100,000 to $110,000 range. First, the property improvements in the commercial areas and the single-family homes would add $51 million in assessed value, which translates to $48,000 in added property tax revenue to the City. The Below-Market Rate apartments would presumably be exempt from property tax. Second, UUT revenues would be generated by the new residents of the project and by the businesses occupying the commercial space. Using average monthly utility expenses for commercial businesses and residences, as well as average monthly telephone bills, the ULIT revenue impact is estimated at $11,500. Actual LrUT figures would depend upon the mix and types of retail and office tenants located at the site. Thirdly, employees, of the businesses and residents of the new units would incur sales taxes in their routine purchases within the City, and the grocery store sales would also generate sales tax revenue. Combined, these are projected to be in the $49,000 range. Again, actual figures would depend upon the mix and types of businesses that locate at the site, volume of foot traffic to the site, and other factors. As for one-time fees, the Planning Department estimates that development impact fees would be $450,000, and the expected sales value of the single-family homes and the commercial space would yield a one-time $154,000 to $187,000 in documentary transfer tax revenues. In-lieu fees would not be assessed, due to the public benefits yielded by the below-market housing. CMR: 194:07 Page 5 of 7 On the expenditure side, the project would create 53 new residential units to the City housing stock. This will create new demands for City services such as Community Services, Planning, Police and Fire. The development impact fees are designed to cover the incremental facility needs of the new residents, and service fees in Community Services and Planning are designed to recoup operating expenses associated with the delivery of classes, sports programs, plan reviews, project permits, and other services. Police and Fire services to these additional housing units would be paid by the General Fund, but should be absorbed within the current budget. Lastly, the processing of the development application is on a cost/recovery basis, and no additional funds are necessary for staffing. POLICY IMPLICATIONS Attachment G provides the policies and programs listed in the Comprehensive Plan and Housing Element that are pertinent to the project and most specifically to Neighborhood Commercial development. ENVIRONMENTAL REVIEW The proposed PC project is subject to environmental review under provisions of the California Environmental Quality Act (_CEQA). An Environmental Impact Assessment (EIA) (Initial Study) was prepared fo~ the project and based upon the EIA, it was determined that the project would not have a significant adverse impact on the environment with the proposed mitigation measures regarding trees and noise impacts. The Mitigated Negative Declaration was made available for public review from February 16 through March 7, 2007. Following the P&TC recommendation to rezone to a new PC district with CN standards an addendum was prepared to update the project description to reflect the changes in the proposed development. The traffic impact study prepared for the Initial Study considered the additional trips generated by a CN zoning for the retail component. No additional significant environmental impacts are expected, therefore the modified document would need not be recirculated. PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: BETH BOURNE Senior Planner STEVE EMSLIE Director of Planning and Community Environment EMILY HARRISON Assistant City Manager ATTACHMENTS A. Draft Planned Community Ordinance B. Applicant’s Development Program Statement and Project Description CMR: 194:07 Page 6 of 7 C.Excerpt of Verbatim Minutes of the March 8 P&TC meeting D.Excerpt of Verbatim Minutes of the March 28 P&TC meeting E.Planning and Transportation Commission staff report dated March 8, 2007 (without attachments) F.Planning and Transportation Commission staff report dated March 28, 2007 (without attachments) G.Key Considerations/Policy Implications Matrix H.Neighborhood Commercial (CN) Zoning Compliance Table I.Correspondence received after March 28th meeting J.Initial Study/Mitigated Negative Declaration (Revised) K.Project Plans (Council Members only) COURTESY COPIES Patrick Costanzo, Jr., Executive Vice President, Greenbriar Homes Communities, Inc. John McNellis, McNellis Partners, LLC James Baer, Premier Properties David L. Van Der Wilt Sheri Furman Jay Hammer Marilyn Keller Martin Stone CMR: 194:07 Page 7 of 7 ATTACHMENT D 34’ STREET EXISTING APARTMENT~ (THREE STORY ~XISTING APARTMENTS (TrlREE STORY BUILDING) ,/!//zx,./,/////////,..t,/~..////,,///~ A STREET 27’ EXISTING ACCESS EASEMENT 22’ STREET (EXISTING CONDIlION) PARCEL C EVA I28’ PLAN EXISTING OFFICE (ONE STORY BUILDING) II HOUSE(I~VO STORY BUILDING)STREET EXISTING HOUSE RY BUILDING) PARCEL B ® 17 PLAN 1 18 PLAN 3 PLAN 2 PLAN 1 CAE IOUND/ IY (ONE STORY ALMA PLAZA PALO ALTO, CALIFORNIA GRAPHIC SC~L£ 30 0 30 60 NOTES PARCEL A - PUBLIC PARK PARCEL B - PRIVATE STREET & PRIVATE PARK PARCEL C -MIXED USEPARCELD-RETAIL SERVICES/OFFICES PARCEL E - RETAIL SERVICES/OFFICES LOTS 1-38 - RESIDENTIAL E~ | S~m~r~s IPL~ 255 SHOREUNE DRNE, SUITE 200REDWOOD CPPI’~ CA 94.065650-~82-6300 650-482-6399 (FAX) i THE GUZZARDO PARTNERSHIP ~NC. Lsndscope Architects" Land Planners 836 Montgomery Street Son Fr~nclaco, CA 94-133T 415 433 44572 F 415 433 5003 PROPOSED SITE PLAN GREENBRIAR HOMES COMMUNITIES INC./ MC NELLIS PARTNERS ATTACHMENT ’A’ 5865 Owens Drive Pleosanton, CA 94588 925.251,7200 m 925.251.7201 PROJECT NO: 20050086 Date 04.16.07