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HomeMy WebLinkAboutStaff Report 363-07City of Palo Alto City Manager’s Report TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER 9 DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE:SEPTEMBER 24, 2007 CMR:363:07 SUBJECT:ADOPTION OF A NEGATIVE DECLARATION FOR 395 PAGE MILL ROAD AND A RESOLUTION APPROVING A COMPREHENSIVE PLAN AMENDMENT FOR A 9.84-ACRE PARCEL FROM LIGHT INDUSTRIAL TO RESEARCH/OFFICE PARK LAND USE DESIGNATION,AND AN ORDINANCE AMENDING THE ZONING MAP OF THE CITY OF PALO ALTO TO CHANGE THE ZONE DESIGNATION FOR 395 PAGE MILL ROAD FROM THE GENERAL MANUFACTURING (GM) ZONE DESIGNATION TO THE RESEARCH, OFFICE & LIMITED MANUFACTURING (ROLM) ZONE DESIGNATION RECOMMENDATION Staff and the Planning and Transportation Commission (PTC) recommend that the Council: 1.Adopt the proposed Negative Declaration (Attachment C), o Adopt the Resolution amending the land use map of the Palo Alto Comprehensive Plan to change the designation of 395 Page Mil! Road from Light Industrial to Research/Office Park (Attachment A), and Adopt the Ordinance to change the zoning classification of 395 Page Mill Road from General Manufacturing (GM) to Research, Office & Limited Manufacturing (ROLM) (Attachment B). DISCUSSION The property owner desires to expand the potential uses of the property to include professional, medical and general office use to provide flexibility in leasing the building. The property owner has recently secured a long term tenant for the building. Although this tenant meets the allowable uses under the parcel’s current zoning, the need for greater flexibility of uses could return in the future if new tenants are solicited. The original approval for the building included a 20% parking reduction (fiom 850 parking spaces to 680 parking spaces) because the applicant at the time demonstrated that effective alternatives to automobile access are in effect for the building occupants. The 170 parking spaces not provided on site were placed in landscape reserve along the southern property line adjacent to the 211-space parking garage. The former tenant had implemented a commute alternatives program ~vhich provided assistance and incentives to employees who seek to use alternative transportation modes. It was determined that this pro~am would effectively reduce the need for parking at the site, since internal surveys of its facilities indicated that 35% of the former tenant’s employees use alternative transportation modes. In addition, it was determined that the location of the new building near the Caltrain depot at California Avenue and bus routes along E1 Camino Real made this level of alternative transportation use realistic. It is anticipated that future tenants will provide similar transportation demand management progam for employees. COMMISSION REVIEW AND RECOMMENDATION On July 11, 2007, the PTC reviewed the proposal. Staff’s presentation to the PTC included a memorandum responding to several PTC questions (Attactmaent D) and a definitions handout (Attachment E) distributed to the PTC at the meeting. One member of the public spoke to the PTC regarding this item, expressing his support for the proposal and noting that the proposed zoning was suited for the building and site and a new tenant could then use the building more appropriately. The PTC voted 4-1-0-2 (Holman opposed and Sandas and Tuma absent) to recommend that the City Council approve the Negative Declaration, adopt a resolution amending the Comprehensive Plan designation to Research/Office Park and adopt an ordinance rezoning the 9.86-acre parcel to Research, Office & Limited Manufacturing (ROLM). The staff report and minutes of the PTC meeting are attached (Attachments F and G). RESOURCE IMPACT As the request is for a Comprehensive Plan Amendment and Zone Change with no new development proposed, the action results in no change to property or sales tax revenues accruing to the City. There will thus be no direct impact on City resources associated with the action recommended in this staff report. Staff time spent on the development revie~v of this project is fully recoverable through fees charged to the applicant. ATTACHMENTS Attaclmaent A: Resolution Amending Land Use Map Attachment Attachment Attachment Attachment Attactmaent F: Attaclmaent G: B:Ordinance Amending the Zoning Map C:Negative Declaration and Initial Study D:Staff Memorandum to Commission dated July 11,2007 E:Palo Alto Municipal Code Section 18.04.030, Definitions PTC Staff Report, July 11, 2007, with Table 1, location map and applicant letter PTC Meeting Minutes, July 11, 2007 PREPARED BY: Contract Planner DEPARTMENT HEAD REVIEW: -"~TE~E EM$I~E - Director of Plalming and Community Environment CITY MANAGER APPROVAL: Assistant City Manager COURTESY COPIES Ray Paul, Jay Paul Company Harold Hohbach, Hohbach Realty Company Suzanne Bayley, Emerson Street Neighborhood ATTACHMENT A RESOLUTION NO. --- RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING AN AMENDMENT TO THE COMPREHENSIVE PLAN LAND USE MAP BY CHANGING THE LAND USE DESIGNATION FOR 395 PAGE MILL ROAD FROM LIGHT INDUSTRIAL TO RESEARCH/OFFICE PARK WHEREAS, the Planning Commission, after a duly noticed public hearing on July ii, 2007 recommended that the City Council amend the Land Use Element of the Palo Alto Comprehensive Plan as set forth below; and WHEREAS, upon consideration of said recommendation after a duly noticed public hearing on September 24, 2007, the Council desires to amend said plan as hereinafter set forth; The Council of the City of Palo Alto does RESOLVE as follows: SECTION i. The City Council finds that the public interest, health, safety and welfare of Palo Alto and the surrounding region require amendment of the Land Use Map of the Palo Alto Comprehensive Plan as set forth in Section 2. SECTION 2. The City Council hereby amends the Land Use Map of the Palo Alto Comprehensive Plan by changing the designation of the area depicted in Exhibit A from Light Industrial to Research/Office Park. Exhibit A is attached to this resolution and incorporated into it by this reference. SECTION 3. The Council finds that the adoption of this resolution will have no significant adverse environmental impact. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: 070830 syn 0120152 City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Planning and Community Environment 070~30 syn 0120152 2 NOT YET APPROVED ATTACHMENT B ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE ZONING MAP OF THE CITY OF PALO ALTO TO CHANGE THE ZONE DESIGNATION FOR 395 PAGE MILL ROAD FROM GENERAL MANUFACTURING ZONE DESIGNATION TO THE RESEARCH, OFFICE & LIMITED MANUFACTURING (ROLM) ZONE DESIGNATION. The Counci! of the City of Palo Alto does ORDAIN as follows: SECTION i. The City Council finds as follows: A.The Planning and Transportation Commission, after a duly noticed public hearing on July ii, 2007 has recommended that the City Council rezone the subject site (395 Page Mill Road) to the Research, Office & Limited Manufacturing (ROLM) zone designation. B. The Planning and Transportation Commission has reviewed the facts presented at the public hearing,including public testimony and reports and recommendations from the director of planning and community environment or other appropriate city staff. C.The Planning and Transportation Commission find that rezoning the parcel to Research, Office & Limited Manufacturing (ROLM) zoning is in accord with the Palo Alto Comprehensive Plan, in that the Comprehensive Plan designation of the site is recommended to be Research/Office Park. D.The Counci! has held a duly noticed public hearing on the matter on September 24, 2007, and has reviewed the environmental documents prepared for the project and .al! other relevant information, including staff reports, and all testimony, written and oral, presented on the matter. SECTION 2. The Council finds that the public interest, health and welfare require an amendment to the Zoning Map of the City of Palo Alto as set forth in Section 3. SECTION 3. The Council hereby amends the Zoning Map of the City of Palo Alto to place the subject site (395 Page Mill Road), within the Research, Office & Limited Manufacturing (ROLM) zoning district. 070830 syn 0120184 NOT YET APPROVED SECTION 4. The Council hereby finds that this rezoning is subject to environmental review under provisions of the California Environmenta! Quality Act (CEQA) . An environmental impact assessment was prepared for the project and it has been determined that no potentially adverse impacts would result from the rezoning of the property; therefore, the project would have no significant impact on the environment. SECTION 5. This ordinance shall be effective upon the thirty-first day after its passage and adoption. INTRODUCED PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: St. Deputy City Attorney Mayor City Manager Director of Planning and Community Environment 070,~30 syn 01201 ~4 ATTACHMENT City of Palo Alto Department of Planning and Community Environment California Environmental Quality Act NE GA TIVE DECLARATION I.DESCRIPTION OF PROJECT Date:June 19, 2007 Application Nos.:07PLN-00093 Address of Project:395 Page Mill Road Assessor’s Parcel Number: 132-32-047 Applicant:Ray Paul (Jay Paul Company), 350 California Street, Suite 1905, Palo Alto, CA 94104 Owner:Ray Paul (Jay Pau! Company), 350 California Street, Suite 1905, Palo Alto, CA 94104 Project Description and Location The applicant proposes a Comprehensive Plan Amendment from Light Industrial to Research!Office Park and a Zone Change from General Manufacturing (GM) to Research, Office & Limited Manufacturing (ROLM). These requests are not associated with any new development on the site. Environmental Assessment: An Initial Study has been completed and a Draft Negative Declaration has been prepared in accordance with California Environmental Quality Act (CEQA) requirements. Zone District: GM. II.DETERMINATION In accordance with the City of Palo Alto’s procedures for compliance ~vith the California Environmental Quality Act (CEQA), the City has conducted an Initial Study to determine whether the proposed project located at 395 Page Mill Road could have a significant effect on the environment. On the basis of that study, the City makes the following determination: X The proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION is hereby adopted. Although the project, as proposed, could have a significant effect on the environment, there will not be a significant effect on the environment in this case because mitigation measures for contaminated soils and traffic impacts have been added to the project and, therefore, a MITIGATED NEGATIVE DECLARATION is hereby adopted. The attached initial study incorporates all relevant information regarding the potential environmental effects of the project and confirms the determination that an EIR is not required for the project. Project Planner Date Director of Planing and Community Environment Date ATTACHMENT ENVIRONMENTAL CHECKLIST FORM City of Palo Alto Department of Planning and Community Environment Q 10. Project Title: Lead Agency Name and Address: 395 Page Mill Road City of Palo Alto, Planning Division 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 Contact Person and Phone Number:Lorraine Weiss, Contract Planner (415) 921-5344 Project Location:395 Page Mil! Road Palo Alto, CA 94301 Application Number(s): Project Sponsor’s Name and Address: 07PLN-00093 Ray Paul, Jay Paul Company 350 California Street, Suite 1905 Palo Alto, CA 94104 General Plan Designation:Light Industrial Zoning:GM Description of the Project: (Describe the whole action involved, including but not limited to later phases of the project, and any secondary, support, or off-site features necessary for its implementation. (Attach additional sheets if necessary) The applicant proposes a Comprehensive Plan Amendment from Light Industrial to Research/Office Park and a Zone Change from General Manufacturing (GM) to Research, Office & Limited Manufacturing (ROLM). These requests are not associated with any new development on the site. The applicant desires both a Comprehensive Plan Amendment and Zone Change in order to bring the subject site current with the Palo Alto Zoning Ordinance since the ROLM category is more suited for the site than its current General Manufacturing zoning because the existing building and parking garage on the site which was designed and constructed in 2000 was built as an office building. As an office building, it is more likely to attract office users with more flexible zoning in place rather than the current restricted uses. The proposed Comprehensive Plan Amendment and Zoning Change would allow for a broader range of office uses. Surrounding Land Uses and Setting: (Briefly describe the project’s surroundings) The property is bordered by single family uses on the south, commercial and single family uses on the west, commercia! and light industrial on the east and by Page Mill Road, multi-family 395 Page Mill Road Page 1 residential and commercial on the north. The 9.8 acre site is currently developed with a three- story 212,500 square foot office building, parking facility and related site improvements. 11.Other public agencies whose approval is required (e.g. permits, financing approval, or participation agreement). None. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. Aesthetics Agriculture Resources Air Quality Biological Resources Cultural Resources Geology/Soils Hazards & Hazardous Materials Hydrology/Water Quality Land Use/Planning Mineral Resources Noise Population/Housing Public Services Recreation X Transportation/Traffic Utilities/Service Systems Mandatory Findings of Significance Construction/Demolition None DETERMINATION: (To be completed by the Lead Agency). On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect: 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. X 395 Page Mill Road Page 2 I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. Project Planner Date Director of Planning and Community Environment Date EVALUATION OF ENVIRONMENTAL IMPACTS: 1)A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e. g. the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project-specific factors as well as general standards (e. g. the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis). 2)All answers must take account of the whole action involved, including off-site as well as on-site, cumulative as well as project-level, indirect as well as direct, and construction as well as operational impacts. 3)Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. :Potentially Significant Impact" is appropriate if there is substantial evidence that an effect may be significant. If there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is required. 4)"Negative Declaration: Less Than Significant With Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less than Significant Impact." The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section 17, "Earlier Analysis," may be cross-referenced). 5)Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063 (C) (3) (D). In this case, a brief discussion should identify the following: 395 Page Mill Road Page 3 6) 7) 8) 9) a) Earlier Analysis Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c)Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. This is only a suggested form, and lead agencies are free to use different formats; however, lead agencies should normally address the questions from this checklist that are relevant to a project’s environmental effects in whatever format is selected. The explanation of each issue should identify: a) the significance criteria or threshold, if any, used to evaluate each question; and b) the mitigation measure identified, if any, to reduce the impact to less than significance. Issues and Supporting Information Resources I.AESTHETICS. Would the project: a)Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare, which would adversely affect day or nighttime views in the area? Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact X X X X 395 Page Mill Road Page 4 Issues and Supporting Information Sources Potentially Potentially Less Than No Resources Significant Significant Significant Impact Issues Unless Impact Mitigation Incorporated II.AGRICULTURE RESOURCES. In determining whether im ~acts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), asshown on the maps prepared pursuant to 1 Xthe Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson 1,2 X Act contract? c)Involve other changes in the existing environment which, due to their location or nature, could result in 1 X conversion of Farmland, to non- agricultural use? III. AIR QUALITY. Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air 1,3 quality plan? b) Violate any air quality standard or contribute substantially to an 1,3existing or projected air quality violation c)Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state 1,3 ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant 1,3 concentrations? e)Create objectionable odors affecting 1,3a substantial number of people? IV. BIOLOGICAL RESOURCES. Would the project: X X X X X 395 Page Mill Road Page 5 a) b) c) d) e) Issues and Supporting Information Resources Sources Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or 1,3 regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans,1,3policies, regulations or by the California Department of Fish and Game or US Fish and Wildlife Service? Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not 1,3limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or 1,3 migratory wildlife corridors, or impede the use of native wildlife nursery sites? Conflict with any local policies or ordinances protecting biological 1,3resources, such as a tree preservation policy or ordinance? Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation 1,3Plan, or other approved local, regional, or state habitat conservation plan? CULTURAL RESOURCES. Would the project: Cause a substantial adverse change in the significance of a historical 1,3 resource as defined in 15064.5? Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact X X X X X X X 395 Page Mill Road Page 6 Issues and Supporting Information Resources Sources b)Cause a substantial adverse change in the significance of an 1,3archaeological resource pursuant to 15064.5? c) Directly or indirectly destroy a unique paleontological resource or 1,3 site or unique geologic feature? d) Disturb any human remains, including those interred outside of 1,3 formal cemeteries? VI. GEOLOGY AND SOILS. Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for 1,4the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking?1,4 iii) Seismic-related ground failure,1,4including liquefaction? iv) Landslides?1,3 b) Result in substantial soil erosion or 3the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on-1 or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994),1,3 creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or 1,3 alternative waste water disposal Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact X X X X X X X X X X X 395 Page Mill Road Page 7 Issues and Supporting Information Resources systems where sewers are not available for the disposal of waste water? Sotlrces Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated VII. HAZARDS AND HAZARDOUS MATERIALS. Would the project? a) Create a significant hazard to the public or the environment through the routing transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c)Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d)Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e)For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f)For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working the project area? g)Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, 3 3 1,3 1,3 1,3 1,3 1,3 1,3 Less Than Significant Impact No Impact X X X X X X X X 395 Page Mill Road Page 8 Issues and Supporting Information Resources Sources including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? VIII. HYDROLOGY AND WATER QUALITY. a) Violate any water quality standards or waste discharge requirements?1,3 b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g.,1,3 the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a 3 manner which would result in substantial erosion or siltation on- or off-site? d)Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or 3substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? e)Create or contribute runoff water which would exceed the capacity of existing or planned stormwater 3drainage systems or provide substantial additional sources of polluted runoff?. f)Otherwise substantially degrade 3 water quality? g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or 3 Flood Insurance Rate Map or other flood hazard delineation map? Potentially Significant Issues Would the pro,’ect: Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact X X X X X X X 395 Page Mill Road Page 9 Issues and Supporting Information Resources Sotlrces h) Place within a 100-year flood hazard area structures which would impede 3 or redirect flood flows? i)Expose people or structures to a significant risk of loss, injury or death involve flooding, including 3 flooding as a result of the failure of a levee or dam? j)Inundation by seiche, tsunami, or 3mudflow? IX. LAND USE AND PLANNING. Would the project: a) Physically divide an established 3community? b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local 1,2,3 coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c)Conflict with any applicable habitat conservation plan or natural 1 community conservation plan? X. MINERAL RESOURCES. Would the project: a) Result in the loss of availability of a known mineral resource that would 1be of value to the region and the residents of the state? b) Result in the loss of availability of a locally-important mineral resource recovery site delineated on a local 1 general plan, specific plan or other land use plan? XI. NOISE. Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan 1,3 or noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive ground borne vibration 1,3 or ground borne noise levels? c) A substantial permanent increase in ambient noise levels in the project 1,3 Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact X No Impact X X X X X X X X X X 395 Page Mill Road Page 10 Issues and Supporting Information Resources vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? e)For a project located within an airport land use plan or, where such a plan has not been adopted, would the project expose people residing or working in the project area to excessive noise levels? f)For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? XII. POPULATION AND HOUSING. Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? c)Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? XIII. PUBLIC SERVICES. a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Sources Potentially Significant Issues 1,3 1,3 1,3 1,3 1,3 Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact X No Impact X X X X 1,3 X 1,3 X 395 Page Mill Road Page 11 Issues and Supporting Information XIV. a) b) Resources Fire protection? Police protection? Schools? Parks? Other public facilities? RECREATION Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? Sources 1,3 3 Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact XV. TRANSPORTATION/TRAFFIC. Would the a) Cause an increase in traffic which is b) c) d) ~ roject: substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? Result in change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? 1,2,3 1,3 1,3 3 No Impact X X X X X X 395 Page Mill Road Page 12 Issues and Supporting Information Resources Potentially Significant Sources Potentially Significant Less Than Significant Issues e)Result in inadequate emergency 3access? f)Result in inadequate parking 1, 2, 3capacity? g) Conflict with adopted policies, plans, or programs supporting alternative 1, 2,3transportation (e.g., bus turnouts, bicycleracks)? XVI. UTILITIES AND SERVICE SYSTEMS. Would the project: a) Exceed wastewater treatment requirements of the applicable 1,3Regional Water Quality Control Board? b)Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of 1,3 which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing 3facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources,3 or are new or expanded entitlements needed? e)Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity 3 to serve the project’s projected demand in addition to the provider’s existing commitments? f)Be served by a landfill with sufficient permitted capacity to 3accommodate the project’s solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to 3 solid waste?tXVII. MANDATORY FINDINGS OF SIGNIFICANCE. a) Does the project have the potential Unless Mitigation Incorporated Impact No Impact X X X X X X X X X X 395 Page Mill Road Page 13 b) c) Issues and Supporting Information Resources to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self- sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact SOURCE REFERENCES: 1.Palo Alto Comprehensive Plan 1998-2010 & Maps 2.Palo Alto Municipal Code, Title 18- Zoning Ordinance 3.Planner’s knowledge of the project and project site 4.FEMA Flood Map, Community Panel Map #060348 0005DX, dated 9/6/89 5.Alquist-Priolo Earthquake Fault Zoning Map EXPLANATION FOR CHECKLIST RESPONSES: No Impact X X I.Aesthetics The project is for a Comprehensive Plan Amendment and Zone Change to broaden the range of pelvnitted office uses on this site and does not include any physical change to the development of the site. Therefore, there is no aesthetic impact that results from the proposed project Mitigation Measures:None 395 Page Mill Road Page 14 II.Agricultural Resources The site is not located in a Prime Farmland, Unique Farmland, or Farmland of Statewide Importance area, as shown on the maps prepared for the Farmland Mapping and Monitoring Program of the California Resources Agency. The site is not zoned as an agricultural use, and it is not regulated by the Williamson Act. Mitigation Measures:None III. Air Quality The subject site is in the Cal-Ventura neighborhood and is in an area surrounded by a mix of uses including commercial, single family residential, and light industrial. As the project does not change the physical development of the site, it will not result in an impact to air quality. Mitigation Measures:None IV. Biological Resources The subject site is currently developed with a three-story 212,500 square foot office building, parking facility and related site improvements including some trees and landscaping. As the project does not change the physical development of the site and none of the existing trees would be removed, the project would not result in an impact to biological resources. Mitigation Measures:None V. Cultural Resources The project site is located in an area of moderate sensitivity, as indicated in the City of Palo Alto Comprehensive Plan, 1998-2010. A three-story building and parking facility with related site improvements were constructed on the site in 2000 and no cultural resources were discovered at this location during grading and construction activities. As the proposed project would not result in any modification to the existing development or site, this request would not result in impacts to cultural resources. Mitigation Measures:None VI. Geology and Soils While the site is located in a seismically active area and the site is located in a strong seismic risk area which is subject to strong ground shaking in the event of an earthquake, the proposal does not entail physical changes to the existing development on the site. The existing building was constructed in 2000 to the latest Uniform Building Code which are directed at minimizing seismic risk and preventing loss of life and property in the event of an earthquake. Additionally, the development at the time it was constructed was subject to conditions of approval which 395 Page Mill Road Page 15 ensured that potential impacts on erosion and soil would not be significant. Therefore, the proposed request would not result in an impact to geology and soils. Mitigation Measures:None VII. Hazards and Hazardous Materials No known conditions exist on the site regarding existing materials that may be deemed harmful or hazardous nor would the proposal entail the use of hazardous materials on site or create hazards. Therefore, the project would not result in an impact to hazards and hazardous materials. Mitigation Measures:None VIII. Hydrology and Water Quality No physical changes are proposed to the existing structures and site improvements. Therefore, the project does not result in impacts to hydrology and water quality. Mitigation Measures:None IX. Land Use and Planning The site is designated for ’Light Industrial’ use in the City of Palo Alto’s Comprehensive Plan, 1998-2010. This land use provides wholesale and storage warehouses and the manufacturing, processing, repairing, and packaging of goods. Emissions of fumes, noise, smoke or other pollutants are strictly controlled. Compatible residential and mixed use projects may be located in this category. The proposed project would include a change to the Comprehensive Plan designation to ’Research, Office Park’ which allows office, research, and manufacturing uses in addition to educational institutions and child care facilities and compatible commercial services uses such as banks and restaurants, and residential or mixed uses that would benefit from the proximity to employment centers. Zoning for the project site is GM, General Manufacturing. The proposed project includes the rezoning of the site to Research, Office and Limited Manufacturing (ROLM) which would accommodate a broader range of office uses. The applicant desires both a Comprehensive Plan Amendment and Zone Change in order to bring the subject site current with the Palo Alto Zoning Ordinance since the ROLM category is more suited for the site than its current General Manufacturing zoning because the existing building and parking garage on the site which was designed and constructed in 2000 was built as an office building. As an office building, it is more likely to attract tenants suited for office use rather than a manufacturing user and would be consistent with the proposed Comprehensive Plan land use designation and Zoning category which would allow for a broader range of office uses. Mitigation Measures:None 395 Page Mill Road Page 16 X. Mineral Resources The project would not impact known mineral or locally important mineral resources. Mitigation Measures:None XI. Noise As the proposed requests do not involve changes to the physical development of the site, the project would not create additional noise over and beyond what is already generated on the property. Therefore, the project would not result in a noise impact. Mitigation Measures:None XII. Population and Housing There would not be any substantial change to housing or population as a result of the proposed project. Therefore, the project would not result in an impact to population and housing. Mitigation Measures:None XlII. Public Services There would not be any change in required services, including Fire, Police, Schools, Parks and other public facilities as a result of the proposed project. Therefore, the project would not result in an impact to public services. Mitigation Measures:None XIV. Recreation There would not be any change to the demand of recreation services as a result of the proposed project. Therefore, the project would not result in an impact to recreation. Mitigation Measures:None XV. Transportation/Traffic The proposed project does not include modifications to the existing building and site, or reconfiguration of the parking, circulation and site access. Currently, the site is parked with 680 on-site spaces, 180 deferred spaces in landscape reserve, and 3 loading spaces. Eight hundred and sixty (860) parking spaces are required by the Off-Street Parking Ordinance for the existing building. The office uses proposed under the ROLM zoning would not increase the demand for parking and increase the number of trips to the project site. Therefore, the project would not result in a transportation/traffic impact. 395 Page Mill Road Page 17 Mitigation Measures:None XVI. Utilities and Service Systems The proposed project would not increase the demand on existing utilities and service systems, or use resources in a wasteful or inefficient manner as the proposed project does not alter the physical development of the site, and the uses allowed under the ROLM zoning would be similar in nature to those that presently exist. Therefore the project would not result in an impact to utilities and service systems. Mitigation Measures:None 395 Page Mill Road Page 18 ATTACHMENT D PLANNING & TRANSPORTATION DIVISION Memorandum Date:July 11, 20t)7 PLANNING AND TRANSPORTATION COMMISSION FFOnl: Subject: Lorraine Weiss, Contract Planner 395 Page Mil! Road (07PLN-00093) - Response to questions Please find below questions asked by Commissioner Holman in her email message dated July 9, 2007 and Commissioner Keller in his email message dated July 10, 2007 and their responses by staff. Commissioner Holman’ s questions: A comparison of the development standards for GM, ROLM, and PTOD in determining how the zone change would or would not conform provided along with the cun-ent building deve!opment specifications. Please find attached Table 3: Development Standards which compares the existing site for information that is available through City records with the GM Zone, ROLM Zone and PTOD Zone. The City Attorney will respond to this question Comlrfission meeting. Commissioner Keller’s questions: 1. Would rezoning be a spot zoning since there are no ROLM-zoned parcels nearby? at the Planning & Transportation Could we please get a layout of the site in question? Attached is a copy of a site plan used by the applicant for general marketing purpose. Also for reference are floor plans for the first, second, and third floors of the building located at 395 Page Mill Road. These are floor plans used for marketing purposes by the applicant and could be modified as different tenants occupy the building. Can the PTC recommend requiring as a condition of approval that no lighted signage from this property be visible from the residential neighborhood across Alma Street? Conditions cannot be applied to Comprehensive Plan Amendments and Zone Change Amendments. Can the PTC recommend requiring as a condition of approval a Transportation Demand Management program? As with response to question #2 previously, Conditions cannot be applied to Comprehensive Plan Amendments and Zone Change Amendments. What transportation impact fees is this property subject to? Is this property subject to fees that pertain to the Stanford Research Park? Please explain the new transportation impact fee enacted by the Council and how it applies to this property. Transportation impact fees do not apply to this property for the requested Con-tprehensive Plan Amendment and Zone Change Amendment as this project does not involve adding an increase of floor area or development to the site. The requests, if approved, would broaden the allowable office uses at this location. The prqiect site is not located within the Stanford Research Park; therefore, no fees that pertain to Stanford Research Park apply to this project. The new transportation impact fee enacted by the Council applies to projects which result in a net increase in trips. As the subject project does not add development to the site and only broadens the office uses permitted at this property, no net increase in trips is anticipated. TABLE 3: Development Standards DEVELOPMENT STANDARD Minimum Site Specifications Site Area (sq. ft.) Site Width (ft.) Site Depth (ft.) Minimum Setbacks Front Yard (ft) Rear Yard (ft) Interior Side Yard (ft) Street Side Yard (ft) Minirnum Yard (ft) for site lines abutting or opposite residential districts Maximum Site Coverage Floor Area Ratio (FAR) 100% Non-Residential FAR 100% Residential FAR Mixed Use FAR Mixed Use Non-Residential FAR Cap Hotels Height Standard Within 150 ft of residential zone Within 40 ft of a residential zone Parking EXISTING SITE 9.84 acres 25 0.49:1 (3,110 sf exempt from floor area)* 1-1!a 50 feet GM ZONE None None None None None None None None 0.5:1 50 feet 35 feet 35 feet ROLM ZONE 43,560 (1 acre) 100 150 20 20 20 20 10 30% 0.4:1 35 feet 35 feet 25 feet PTOD ZONE t.0:1 1.25:1 Total 0.35 Office & research & development uses: 0.25 2.0 40 feet 680 spaces &1 space for 1 space for 1 space for 180 deferred every 250 sq. ft.every 250 sq. ft.every 250 sq. ft. spaces = 850 spaces = 850 spaces = 850 spaces Exempt floor area for cafeteria, fitness center, mother’s nursery room, recycling ASH STREET PARK BOULEVARD ATTACHMENT F 2 PLANNING DIVISION STAFF REPORT TO:PLANNING & TRANSPORTATION COMMISSION FROM:Lorraine Weiss Contract Planner DEPARTMENT:Planning and Community Environment AGENDA DATE: SUBJECT: July 11, 2007 395 Page Mill Road (07PLN-00093): Request for a Comprehensive Plan Amendment from the Light Industrial to Research!Office Park Land Use Designation and a Zone Change from General Manufacturing (GM) to Research, Office & Limited Manufacturing (ROLM) on a 9.86 acre parcel. Environmental Assessment: An Initial Study and Draft Negative Declaration have been prepared in accordance with California Environmental Quality Act (CEQA) requirements. RECOMMENDATION: Staff recommends that the Planning and Transportation Commission (Commission) recommend that the City Council adopt the Negative Declaration and approve the requested Comprehensive Plan Amendment from the Light Industrial to Research/Office Park Land Use Designation, and a Zone Change from General Manufacturing (GM) to Research, Office & Limited Manufacturing (ROLM) on a 9.86 acre parcel. BACKGROUND: Project Description The project involves a Comprehensive Plan Amendment from Light Industrial to Research/Office Park and a Zone Change from General Manufacturing (GM) to Research, Office & Limited Manufacturing (ROLM). These requests are not associated with any new development on the site. Rather, because the building has remained vacant for over a year, the applicant believes that the potential for leasing the property would be improved with a Comprehensive Plan designation and Zoning that offered uses that are more consistent with this type of building and the current Palo Alto Zoning Ordinance. The applicant indicates that the ROLM zoning is more suited for the site than its current General Manufacturing zoning. The 395 Page Mill Road; PTC July 11, 2007 Page 1 existing building was constructed in 2000, and was designed and built as an office building for administrative office use (Agilent headquarters), though the zoning is general manufacturing. The applicant has stated that the site is more likely to attract office users with more flexible zoning in place (ROLM allows administrative office services and professional and general business offices) rather than the current restricted uses imposed on the site (GM allows only administrative offices, i.e. headquarters, via conditional use permit approval). Please refer to the applicant’s statement of intent in Attachment E. Site Information The project site is a rectangular property bounded by Page Mill Road on the north, Park Boulevard on the east, Olive Street on the south, and Ash Street on the west. The site is 429,523 square feet or 9.86 acres in size. Surrounding uses include single family uses on the south, commercial and single family uses on the west, commercial and light industrial on the east and by Page Mill Road, multi-family residential and commercial on the north. The property was redeveloped in 2000 and is currently developed with a three-story, 212,500 square foot administrative/research office and development building (formerly Agilent Technologies), a two level parking structure, and related site improvements. Parking on the site consists of 680 parking spaces, including 469 spaces at grade and 211 spaces within the two level parking structure. In May 2006, an affiliate of Jay Paul Company acquired the property from Agilent Technologies, Inc. and, subsequently, in September 2006, Agilent vacated the premises. The property has remained vacant since then. DISCUSSION: Comprehensive Plan Amendment Attachment A is a Resolution in support of the requested change to "Research/Office Park." Findings for a Comprehensive Plan amendment are set forth in PAMC Chapter 19: 1."When changed conditions or further studies by the commission require, the commission may amend, extend, or add to all or part of the master or general plan... [Section 65505]" 2."When it deems it to be for the public interest, the legislative body may change or add to all or part of an adopted master or general plan. [Section 65511]". The parcel has a Comprehensive Plan land use designation of"Light Industrial" which allows for wholesale and storage warehouses and the manufacturing, processing, repairing, and packaging of goods. Emissions of fumes, noise, smoke or other pollutants are strictly controlled. Compatible residential and mixed use projects may be located in this category. The proposed project would include a change to the Comprehensive Plan designation to ’Research, Office Park.’ "Research/Office Park" is defined as: "Office, research, and manufacturing establishments whose operations are buffered fi’om adjacent residential uses. Other uses that may be included are educational institutions and child care facilities. " Compatible commercial services uses such as banks and restaurants, and residential or mixed uses that would benefit 395 Page Mill Read; PTC July 11, 2007 Page 2 from the proximity to employment centers are also allowed. Additional uses, including retail services, restaurants, commercial recreation, churches, and private clubs may also be located in Research/Office Park areas, but only if they are found to compatible with the surrounding area through the conditional use permit process. " Zone Change Amendment Attachment B is a draft Ordinance in support of the requested change to Research, Office & Limited Manufacturing (ROLM) zoning. The rezoning of the site from GM, General Manufacturing, to ROLM would accommodate a broader range of office uses. Chapter 18.20 of the Palo Alto Municipal Code describes the purposes of the ROLM zone as follows: "The ROLM research, office and limited manufacturing district provides for a limited group of office, research and manufacturing uses in a manufacturing/research park environment, where uses requiring la~ger sites and available natural light and air can locate. Office uses can be accommodated, but should not predominate in the district. The ROLM district is primarily intended for land designated for research and office park use by the Palo Alto Comprehensive Plan and located east of El Camino Real" Please refer to Table 1 in Attachment B comparing the existing GM and proposed ROLM uses. The office uses that the ROLM zone would permit (which the GM zone does not) include: professional and general business offices and medical offices (only by approval of a conditional use permit). Administrative office services (headquarters) are allowed in the ROLM zone and allowed only by approval of a conditional use permit in the GM zone, As the site is located in the Cal-Ventura Mixed Use Area, staff requested that the applicant evaluate uses more consistent with the California Avenue Pedestrian and Transit Oriented Combining District (PTOD). Providing a mix of uses (i.e., neighborhood retail, restaurant, or daycare use) that support services to the building and the public would help further the intent of the PTOD zoning. The applicant, however, has provided a letter indicating why including these uses at this location would be impracticable at this time (refer to Attachment F). While the applicant states that the additional uses would not be feasible, staffbelieves that, at a minimum, the site owner should require that future building leases include language which requires the lessee to utilize Transportation Demand Management (TDM) efforts, coordinated with City staff. An example of an appropriate TDM measure would be to provide Cal Train passes (or other modes of public transportation) to employees to encourage use of public transit. Supporting use of public transportation is one of the objectives of PTOD. As this area is served by the California Avenue Multi-modal Transit Station and Cal Train, requiting TDM practices at this site would be appropriate. ENVIRONMENTAL REVIEW: A Negative Declaration, which reviewed the environmental issues as required by the California Enviromnental Quality Act (CEQA), was circulated for a 20-day public review period from June 22, 2007 to July 11, 2007. A copy of the Negative Declaration and Initial Study are provided in Attachments G and H, respectively. The impacts of the Comprehensive Plan and Zoning 395 Page Mill Road; PTC July 11, 2007 Page 3 Ordinance are considered negligible as the use of the building is not proposed to change. TIMELINE: Application submitted: Application deemed complete: CEQA public review period began: PTC hearing date: CC tentative hearing date: March 27, 2007 June 11, 2007 June 22, 2007 July 11, 2007 September 17, 2007 ATTACHMENTS: A. Resolution of Approval of Comprehensive Plan Amendment B. Ordinance for Approval of Rezone to Research Office and Light Manufacturing ("ROLM") C. Vicinity Map D. Table 1, Existing and Proposed Uses E. Applicant’s Written Narrative dated April 23, 2007 F. Applicant’s Letter, dated June 11, 2007 G. Negative Declaration H. Initial Study COURTESY COPIES: Ray Paul, Jay Paul Company Harold Hohbach, Hohbach Realty Company Suzanne Bayley, Emerson Street Neighborhood Prepared by: Reviewed by: Lorraine Weiss, Contract Planner Amy French, AICP, Manager of Current Planning~~ Department/Division Head Approval: Curtis Williams, Assistant Director 395 Page Mill Road; PTC July 11, 2007 Page 4 ATTACHMENT TABLE 1: Existing & Proposed Uses USE EXISTING PROPOSED GM ROLM ACCESSORY & SUPPORT USES Accessory facilities and activities customarily P P associated with or essential to permitted uses, and operated incidental to the principal use. Automatic Teller Machines P P Home occupations, when accessory to permitted P P residential uses. EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Business and Trade Schools P Religious Institutions P P Colleges and Universities P Private Clubs, Lodges, or Fraternal Organizations CLIP CUP Private Schools (K- 12)CLIP CUP HEALTH CARE SERVICES Ambulance Services Convalescent Facilities CLIP Medical Office CUP Medical Research P Medical Support Retail Medical Support Services MANUFACTURING AND PROCESSING USES Manufacturing P P Recycling Centers CL~CUP Research and Development P P Warehousing and Distribution P P OFFICE USES Administrative Office Services CUP P Financial Services CUP Professional and General Business Offices P PUBLIC/QUASI-PUBLIC USES Service and Equipment Yards P Utility Facilities CUP Utility Facilities essential to provision of utility CUP services but excluding construction!storage yards, maintenance facilities, or corporation yards. RECREATION USES Commercial Recreation CL~CLIP Neighborhood Recreational Centers RESIDENTIAL USES Single-Family Not permitted Not permitted %vo-Family Not permitted Not permitted Multiple-Family CUP Residential Care Homes CUP P RETAIL USES Eating and Drinking Services, excluding drive-in and CI~CUP take-out services Retail Services CLIP CUP SERVICES USES Animal Care, excluding boarding and kennels P Boarding and Kennels CUP Day Care Centers CUP P Family Day Care Homes Small Family Day Care P P Large Family Day Care P P General Business Services P Lodging Hotels providing not more than 10% of rooms with kitchens Mortuaries and Funeral Homes P Personal Services CUP CUP Vehicle Services Automobile Service Stations, subject to site and CUP design review in accord with the provisions of Current Code Chapter 18.82 Automobile Services CUP Off-site new vehicle storage for auto dealerships CUP CUP located in Palo Alto TEMPORARY USES Temporary Parking Facilities, provided that such CUP CUP facilities shall remain no more than five years. TRANSPORTATION USES Passenger Transportation Terminals CUP P = Permitted Use CUP = Conditional Use Permit 395 Zoning Page Districts Mill Road Area Map ATTACHMENT F June 11, 2007 Steve Emslie, Director Planning & Community Environment City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 RE:395 Page Mill Road Rezone and Comprehensive Plan Amendment Application Dear Steve: As you know, the Jay Paul Company has applied for a zoning change and Comprehensive Plan amendment for its property located at 395 Page Mill Road. Staff requested that we evaluate the viability of adding a retail component to the office building, in order to provide for neighborhood-serving uses on the site. We have considered this proposition and concluded, for the reasons set forth below, that the inclusion of a retail component would not be viable at the present time. The property was designed and built in 2000 as an single-tenant office building, not as a mixed-use development. Moreover, since our purchase of the property in May 2006, we have had encountered difficulties attracting tenants with the existing zoning designation. We believe that changes to the existing facility would give rise to certain issues that would further complicate the marketability of the site. First, the existing on-site parking currently is adequate to accommodate the office uses for both occupants and visitors at 3.3 spaces per 1000 square feet. Because retail tends to require higher parking ratios, the site would not be adequately parked for both retail and office uses without the reduction of parking spaces reserved for tenants. The site’s current parking ratio generally is considered the minimum number of spaces the office market will accept. Consequently, reducing the number of tenant spaces in order to accommodate a retail component would make the site less desirable to prospective flagship tenants. Second, the building is configured for a single-tenant user and the Jay Paul Company would prefer that a single-tenant occupy the building. However, while we might consider converting the building to a multi-tenant office configuration, it is premature to commit to such an approach absent concrete lease deals in hand. We also evaluated the possibility of opening the on-site cafeteria to the public, but most prospective single-tenant users would have security concerns about opening up an internal part of the building to the public. As you know, high tech companies, such as Yahoo, Google, HP, and Adobe, have extremely tight security requirements, which would make the public cafeteria a security liability for the prospective tenant, as well as a financially dubious business proposition for the cafeteria operator. Our goal in submitting the application for the zoning change and Comprehensive Plan amendment is to maximize the leasing opporttmities for the site. Opening the cafeteria to the public likely would have a chilling effect on the overall marketability of the building because of these security and operational issues. Third, we believe that the area already is well served by the significant amount of retail located on California Street. In fact, based on our discussions with the California Street merchants and the Chamber of Commerce, we would be loathe to attempt to compete with the neighboring merchants in light of their expectations as to the business traffic generated from our tenanting of the building. Moreover, because of this neighboring retail, there is no actual need for retail on our site, thereby making it difficult to attract retail tenants even if we were to set aside square footage to accommodate the use. Consequently, we have concluded that it would be ill-advised for our company to commit to a development that actually has questionable market viability and that would detract from the natural synergies between the re-populating of the former Agilent building and the California Street merchants. Fourth, the City amended its Zoning Ordinance to include the Research, Office, and Limited Manufacturing (ROLM) District for those office, research, and manufacturing uses in manufacturing/research park environments. (Section 18.20.010(b).) We are seeking a zoning change to bring the 395 Page Mill Road site current with the City’s Zoning Ordinance since the ROLM category is more appropriate for the site than its current General Manufacturing zoning. The ROLM category, however, requires a conditional use permit for retail uses and, as such, retail uses in the ROLM context clearly are to be decided on a case by case basis. Based on the foregoing, we do not believe that the City intended for such conditional uses to be granted in this rezoning context, especially when a site is built out and ready for immediate occupancy. In sum, while a mixed-use development for the 395 Page Mill site might be viable if we were seeking to completely redevelop the site by tearing down the existing building and starting fresh, this is not the case here. The building was built in 2000 and has many years of useful service ahead of it. Accordingly, because of nature of the existing built environment, as well as the abundance of retail and restaurant uses in the immediate vicinity, the Jay Paul Company has concluded that the addition of a retail component to the 395 Page Mill site would not provide a tangible benefit to the City nor be a viable business proposition for our company. Sincerely, Ray Paul Cc:Amy French Lorraine Weiss ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 Planning and Transportation Commission July 11, 2007 Verbatim Minutes EXCERPT 395 Pa~e Mill Road (07PLN-00093): Request by Ray Paul, on behalf of Jay Paul Company, for a Comprehensive Plan Amendment from Light Industrial to Research/Office Park and a Zone Change from General Manufacturing (GM) to Research, Office & Limited Manufacturing (ROLM). These requests are not associated with any new development on the site. Environmental Assessment: An Initial Study and a Draft Negative Declaration have been prepared in accordance with California Environmental Quality Act (CEQA) requirements. Zone District: GM. Ms. Lorraine Weiss. Contract Planner: Good evening Commissioner Holman and members of the Commission. First of all I would like to indicate that I provided at your places this evening a memo with some additional information including responses to questions from Commissioner Holman and Commissioner Keller. Additionally you have an expanded version of Table 2 that includes the PTOD uses that are allowed and it offers comparison to the existing GM and the proposed ROLM. Attached to the memo you will find a site plan and conceptual floor plans, as well as a development standards table to consider. So moving right, along the applicant is requesting a Comprehensive Plan Amendment from Light Industrial to the Research, Office Park land use designation and a zone change from the General Manufacturing to the Research/Office and Limited Manufacturing. As Karen indicated, these requests are not associated with any additiona! development on the site; rather the applicant is requesting these changes so that they can have a broader range of office uses permitted for the site. So in terms of the Comprehensive Plan Amendment, the Staff Report offers the definitions of the existing General Plan land use designation of Light Industrial and that of Research and Office Park. In terms of the Zone Change Amendment, the existing GM would allow administrative office use, though, only with a conditional use permit. In Table 1, attached to the Staff Report, in the expanded version, it shows the differences between the GM zoning and the proposed ROLM uses that are allowed. The differences between the two are that the ROLM zone would allow for professional and general business offices and medical offices, whereas GM currently does not unless a conditional use permit is obtained. This particular site is located within the Cal-Ventura mixed use area also associated with the California Avenue Pedestrian Transit Oriented Combining District. Staff thought because this particular site is part of the PTOD we were trying to encourage a mix of uses. We spoke to the applicant about providing some service support to the administrative office building and at the time they offered reasons why they found that it was not practical and feasible. Then we thought about it further and thought because of the PTOD zoning that we would require if possible that for future building leases that we can incorporate some TDM measures and efforts. Cir. of Palo Alto July 1 l, 2007 Page 1 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 ~9 34 35 36 37 38 39 40 41 42 43 44 45 46 Additionally with this project we prepared an Initial Study, which determined that there were no environmental impacts related to the uses with the Comprehensive Plan and Zone Change Amendment. That would conclude my Staff Report this evening and I would happy to answer any questions of the Commission. Chair Holman: Curtis. Mr. Williams: Just to add that we also gave you a sheet from the definitions of the Zoning Ordinance that has the definition of Administrative Office Services. It means offices and service facilities performing headquarters, regional, or other level management and administrative services for firms and institutions. So that is essentially what the current GM zoning allows in the way of offices is this management and administrative type of office for a firm as opposed to trying to show the distinction between professional offices which can include a wide variety of different offices, medical office, other types of offices that the ROLM zone would do. That is the major distinction as far as what the applicant is looking for in terms of flexibility and in terms of the types of tenants that they might have out there. I also wanted to note that while the administrative office generally requires a use permit in the GM zone that because this building has been used that way for a number of years there is not a use permit required. Essentially that use is already established here so it wouldn’t require a use permit in this case if they did proceed that way. They are obviously not proposing to do that anyway as they are proposing to rezone it to the ROLM. Chair Holman: Lorraine thank you very much for all this information. Because we just got this at our places tonight I wonder if we might just briefly, and it might be helpful for the public as well, if you could just put this Table 3 up on the screen and briefly walk us through the comparisons of what is there and what the three different zones require. That might be really helpful and help move us along more quickly and more informed. Ms. Weiss: Okay. Chair Holman: Thanks. Sorry, I didn’t mean to throw you a curve. If there are any members of the public who would like to speak, I have just one card, and if the applicant wants to speak if we could get a card too. Ms. Weiss: Maybe what I can do is just talk you through it because it just isn’t legible on the screen. So what I have done here is offered a comparison of the existing GM to the proposed ROLM and then the PTOD. On the far left of the table are the various uses. The uses were generated out of the Municipal Code from each of the various zones that are provided in the GM, the ROLM, and the PTOD. I should also indicate that in the PTOD column you will see some items or some uses that are marked with a double asterisk. The double asterisk indicates that allowed nonresidential uses when combined with residential in the PTOD zone have not yet been defined. So it is possible Ci.ty of Palo Alto July 11. 2007 Page 2 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22, 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 that those uses that are delineated with the double asterisk could possibly work in the PTOD zone as long as it is a combined use. So for instance it might be something like a business and trade school with some other form of residential use, though single family would not be allowed. So for the existing GM versus the proposed ROLM you will see that in the existing GM there are many items that are considered permitted uses and some of them are conditional uses. Likewise, you see similar things in the proposed ROLM but when it comes specifically to the office uses you will see administrative office services under the GM requires a conditional use permit whereas under the ROLM it would just be automatically a permitted use. Under professional and general business offices it is not even listed under GM; however, it is considered a permitted use under the ROLM district. Those are the sorts of things that you will glean from looking at this particular table. Then the table includes a second page and hopefully you have it also. It shows that mixed use development is not even considered in the GM, though, under the PTOD it is considered permitted, though combined with residential. Do you have any questions regarding this? Chair Holman: Commissioner Lippert does. Vice-Chair Lippert: I have a couple and thank you very much for this table. I think this table helps significantly. When you have an existing site, and I am just going to take the first example here and you have 50 feet in height for the building but then we are looking at changing the zoning on it and it exceeds that height limit is it a legally existing nonconforming structure. Ms. Weiss: That is correct, a legal nonconforming structure, yes. Vice-Chair Lippert: So are we in any way giving away bonus development rights that we really don’t have any business doing? We are actually giving more height. We could be giving away more floor area than what would be permitted perhaps. What are the legal ramifications of that when you do something like that? I am thinking again specifically if we looked at an example of a bowling alley being rezoned as multi-family residential. In this case the distinction is a little more subtle. Ms. Silver: In this case if there is a rezoning the building does become a legal nonconforming use and it has certain grandparent rights, it is grandfathered. So it can remain. Vice-Chair Lippert: Okay, then the other question I have and then I will pass it on to one of my colleagues. Could we in fact be giving the property owner in this case two bites of the apple? It is a legally existing nonconforming use but for instance in the bowling alley situation even though it has been rezoned as multi-family residential it still remains right now as an operating bowling alley. What is to prevent the owner from keeping this in perpetuity as a OM zone, in other words the use is for the GM zone and then arbitrarily at some point in the future then just saying I am going to go to the ROLM? Ci& of Palo Alto July 1 l, 2007 Page 3 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 1! 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 3! 32 34 35 36 37 38 39 4O 41 42 43 44 45 Ms. Weiss: Once the property is rezoned and it is rezoned to ROLM you can’t then revert back to the old previous use, which was under the GM zone. All the zoning regulations and development standards of the ROLM zone then go into play. Mr. Williams: In this case, assuming it is administrative office use that it was used for before, that is permitted in the ROLM too so it doesn’t create any nonconforming use situation. Vice-Chair Lippert: So basically there is no conflict in this case. Mr. Williams: There is no conflict going that way. There would be conflict if this were say a heavy manufacturing use that weren’t allowed in ROLM and they were zoning it to that than there would be a conflict. If they wanted to go back to something that is allowed in the GM that isn’t allowed in the ROLM but that is not the case. Vice-Chair Lippert: So as long as they are moving in one direction it is fine. Mr. Williams: Right. Vice-Chair Lippert: Okay. Chair Holman: Do you have any other clarifying questions? Commissioner Keller and then Commissioner Garber. Commissioner Keller: First Vice-Chair Lippert alluded to this but I just wanted to be really clear. Is it the case that if this were a vacant lot and it were zoned ROLM could the building that is there now be legally built under ROLM zoning? Ms. Weiss: If it were a vacant lot today, meaning that there is no building there in place at this time, and you were going to construct a new building, the new building would have to conform to the new ROLM zone development standards. Those standards are different from the GM zone development standards. So the building that is there today would not conform to those standards. Commissioner Keller: So in particular it has about 25 percent more floor area than is allowed by ROLM zoning. It has 15 more feet than is allowed by ROLM zoning. I am not sure if there is anything else but that is basically it. I am not sure about lot coverage. I don’t see lot coverage in here as one of the comparisons. The second thing is with respect to the CUP that was done. This building was built in 2000. Was a CUP required under the GM zone in 2000 or was that a requirement that was added for administrative office uses subsequent to the building being built? Was that requirement added to the GM zoning subsequent to this building being built? Mr. Williams: That requirement was added in 2005. Administrative office use used to be a permitted use and we specifically restricted it because of the potential office traffic in GM zones Ciu’ of Palo Alto July 11, 2007 Page 4 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 and the concern about that the early 2000’s brought about. So it was changed in 2005. When it was built it was a permitted use so there is no conditional use permit for the existing building. Commissioner Keller: Thank you. The third question relates to the questions that I asked and that specifically it was responded that conditions cannot be applied to Comprehensive Plan Amendments and Zone Change Amendments. However, the City of Palo Alto could refuse to offer such a Comprehensive Plan Amendment and Zone Change Amendment. We can simply say no. That would obviously be a hardship for the owner of the project because that is why they are asking to change this in the first place. So the statement that ’conditions cannot be applied to such changes’ precludes the potential for quid pro quo agreements where the City basically says we will entertain these changes if you make these concessions? Can the City basically say we will do it if that and if you don’t make those concessions like along the lines I talked about or other ones the City could simply refuse to make the change? Is that something that is legally possible? Ms. Silver: It depends on what changes are being requested. For the most part, this is a legislative action and you really need to just look at whether the particular request for a zone change is appropriate. There are some issues that you can look at with respect to the project but you really should be looking at whether there is just a rational basis for approving the zone change. Commissioner Keller: Let’s suppose that the applicant were to come here with a vacant lot and try to build something akin to what exists here. Would those mitigations that might be needed in order to build that building today, which is conforming or whatever, would considerations like that or are those the kinds of things that we can consider in terms of our recommendation to the City Council that they make as quid pro quo conditions of approval? Ms. Silver: No, you really can’t impose quid pro quo conditions of approval. Chair Holman: Commissioner Garber, clarifying question. Commissioner Garber: I have three and I think they are quick. Does the building fit into any of the existing zones in the city? Mr. Williams: I would say it pretty much just fits into the GM, the zone it is in now because to get close to 50 feet in height and a .5 FAR, you couldn’t do that in any of our commercial zones. CS allows a 50-foot height but it allows .4 FAR not .5 and that is pretty much the most intensive commercial zone then the other industrial and ROLM is the other one from GM. So it is pretty much GM. Commissioner Garber: The second question is the adjacent zoning across Park Boulevard is GM now but some portions of that are in play. Can you remind us if those are going to remain GM or if some of them have been requested to change as well? Cir.’ of Palo Alto July I1, 2007 Page 5 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 Mr. Williams: Two of them are currently in process of change. One is the Hohbach property at 195 Page Mill Road which was approved under the GM zoning but with certain concessions under state law for housing so that it is a mixed use development with the first floor research and development and two floors of residential above that with a 1.5 FAR total and a 40 height. Then the other site across Page Mill Road from that is in consideration right now for the public safety building which the City is looking at. Also, it is actually two parcels there and one parcel also has a residential application in under PTOD for 27 town_house units. Again, they are in negotiations with the City over purchasing the property for the Police Building. Commissioner Garber: Finally, there is a single asterisk at Research and Development. Ms. Weiss: The single asterisk is research and development in the PTOD zone which is not permitted where hazardous materials are used or stored in excess of quantity less than the exempt quantities that are allowed by the Municipal Code. Commissioner Garber: So hazardous materials but underneath that threshold would be allowed in a PTOD zone. Ms. Weiss: Yes. Commissioner Garber: Okay, thank you. Chair Holman: Commissioner Burt, you have a clarifying question? Commissioner Burt: Yes. Could Staff go into greater depth in the distinction between administrative office services and everything contained in that definition on 18.04.030, paragraph A-6, which talks about not only offices and service facilities performing headquarters, regional, or other level management and administrative service, which seems very unclear to me as to what the intent is there versus what we mean by general business offices? Mr. Williams: The way we have administered that definition for administrative office services is that those are generally single user where the offices are serving that user. They may take up all of the building or they may take up a portion but the rest of the building is to be also meeting the GM uses and be the single user that is being supported by those management services. It might be your accounting group, or legal group, and your administrative group of your firm. It could take up the whole building with that for one firm or it could be that a portion of the firm meets the research and development requirements and is used that way and then administrative offices is part of that overall firm too but the office part may not occupy all of the building but that one firm does. Whereas general business services I think is more like business-to-business type of offices. This is specifying real estate, insurance, property management, title companies that essentially provide a lot of services to other businesses. So if general business office were allowed here there could be 20 tenants in the building and a couple could be insurance firms and another could be a travel firm and another could be a title company, etc., etc. Cir. of Palo Alto duly 11. 2007 Page 6 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 DD 34 35 36 37 38 39 40 41 42 43 44 45 46 Commissioner Burr: Given that this building was built at a .5 FAR and ROLM now is a .4 FAR and there are certain requirements that go along with the ROLM approval process today, is that correct, that don’t exist either for the GM or didn’t exist for this building at the time of its construction? Can you clarify what those differences are? Mr. Williams: There are some standards that exist today that did not exist at the time the building was approved. I don’t know that they are necessarily different for ROLM than they are if a new GM property were to come in. We have performance criteria now that apply to all industrial and commercial properties like lighting and noise with thresholds and requires more extensive analysis, and to the extent there are any parking reductions associated with it, transportation demand management requirements. So there are a series of those types of requirements that would probably apply if this were coming in new either under GM or under ROLM. Commissioner Burt: So given that this project has some parking set asides and reserves and it also has had significant issues that were not foreseen at the time of its construction in terms of the light impact on residential areas. Has the applicant volunteered to do any measures to mitigate any of those actions or impacts that would be required by a new construction under ROLM but are not presently being addressed by this building? Mr. Williams: Yes, I think we brought the TDM issue. That was in the Staff Report so that has been presented to the applicant. I just left a message this afternoon but was not able to talk with the applicant about lighting as another issue that would be addressed today in a different way than it was then. So the applicant has not made any specific proposal to us as to opportunities to address those issues. Commissioner Burt: Okay, I will wait and ask the applicant about it then. Chair Holman: One question from Vice-Chair Lippert, one question from Commissioner Keller, and then let’s go to the applicant. Vice-Chair Lippert: Again, in your table here it talks about existing a little over 3,000 square feet of exempt floor area. Is that contained in that FAR number? Ms. Weiss: Yes, if you add the 3,000-plus square foot figure to the 212,500 square feet it ends up coming right to 50 percent FAR. Vice-Chair Lippert: Okay, so in other words what it is actually doing is there would be no requirement that the property owner keep cafeteria, fitness center, mother’s nursery, or any of those other things as part of the building. Those could be easily converted into additional administrative office space, correct? Ms. Weiss: That could occur because they would fall right at the 50 percent FAR. Chair Holman: Commissioner Keller. City of Palo Alto July 1 I, 2007 Page 7 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 Commissioner Keller: In follow up to Commissioner Garber’s question you said that there is no zone today for which this building could be built other than GM. Do you know whether there was another zone in 2000 when this building was built that this building could have been built under other than GM? Mr. Williams: I don’t think so. Commissioner Keller: The other part of this is this building was built as a headquarters building for Agilent Corporation. Assuming that a conditional use permit could be obtained could another headquarters for some company be located in this building if such a tenant were to be provided, would that be legal for some large corporation to locate its headquarters in Palo Alto at this building? Mr. Williams: Yes it would be legal to do that under the GM zoning. Commissioner Keller: If some large company wishes to locate a sales office here which would provide sales tax revenue to Palo Alto, I understand that if you have a large company that locates a sales office here that the sales tax for sales accrues to Palo Alto because that is where it is coming from. I am wondering if that is a use that is either conditionally permitted or permitted under the GM zone. Mr. Williams: It depends on the nature of the sales. Retail is not allowed here. If the sales is something that would be considered sort of accessory to and incidental to the overall headquarters use or something like then yes it would be allowed. But to the extent that sales is primarily the use of the building then no because it is not allowed to just be a sales point of sale. Commissioner Keller: I don’t mean retail sales I mean sales to other corporations for which I think it would be a desirable use by the City of Palo Alto. Mr. Williams: I understand it would be I am just trying to think of how that fits into the uses that we have here. I think if it is business-to-business type of use, I don’t know, we would have to think about that some more but it may under that scenario. Chair Holman: I think Commissioner Burt wants to jump in on this. Commissioner Burt: Curtis, I have to jump in and clarify that. On business-to-business that is an administrative function. It is something that is specifically allowed historically in a GM zone or an ROLM zone. You were referring to retail sales but business-to-business sales have no restriction on them in these districts at all. Mr. Williams: I think that is because they have always been considered that the building is not a sales building. The building that is part of a whole business venture it is not the primary business of that building. That is fine if that becomes an incidental accessory use to the GM business. That is the way I would see it. Ci& of Palo Alto July 11, 2007 Page 8 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 !3 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 3O 31 32 34 35 36 37 38 39 4O 41 42 43 44 45 46 Commissioner Burt: When we went through and had our Zoning Ordinance Update discussions on the ROLM District, one of the things that we specifically addressed was wanting to assure that we not only permitted business-to-business sales but we had extensive discussions on ways in which we might actually encourage it. I wouldn’t want to have an interpretation of either GM or ROLM that put restrictions on business-to-business sales. They are the best source of revenue generation and sales tax for the City. It is exactly what we want to encourage. If StafFs interpretation is in any way restrictive on business-to-business sales then I want to revisit that in the ZOU. Mr. Williams: We will look at that but again, I don’t think it is restrictive but I think it is because we wrote in language that says that sales can be part of the manufacturing or the research and development or whatever. We made those definitions such that they included sales but again I don’t know if it was intended to be the principle use of the site for sales. Commissioner Burt: I think way may not need to settle this issue under this topic but can we get a follow up clarification on that? If there were an office use that was entirely sales office, not retail, but business-to-business sales office, and if Staff’ s interpretation is that that is a restricted use in either GM or ROLM zones, then I want to revisit the ZOU on that subject. Mr. Williams: Okay. Chair Holman: Okay, with that we have two cards from members of the public. We have the applicant and you are allowed ! 5 minutes so you can use whatever of that you wish. Then we have one member of the public, Skip Justman. Mr. Ray Paul, Applicant: Very good, I will try to be brief. I am Ray Paul from Jay Paul Company. I handed out to you some of our marketing literature just so that you can see what the building is. I think Staff has pretty much covered what the requested change is although we got focused on administrative office quite a bit. From the perspective of the landlord and owner of the building, we were hoping to be able to expand potential tenants to professional office and that would be things like law firms and architects and the like and we are less focused on the administrative office uses in our application. I think you know the particulars of the site. That has been presented well by the Staff. So just want to talk briefly to the rationale for the change from our point of view. As you know the building was built in 2000. It was built by Hewlett Packard and at a time when they still owned Agilent and then Agilent was spun off. The building is an office building. That is what the building is. It is not a general manufacturing building and it was not built as such. This is reflected in the original City approvals. The ROLM designation, as you know, was not available then and not withstanding the comments about differences in density, we think that the building is more aptly categorized as a site suitable for ROLM uses than General Manufacturing uses. We don’t think anything is lost to the City necessarily by the zoning change. Light Manufacturing would continue to be allowed there and, in particular, software companies and the Ci& of Palo Alto July l I, 2007 Page 9 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 like could continue to occupy the building whether it s zoned as ROLM or General Manufacturing. We acquired the building in May of 2006 and for six months we attempted to lease the building without coming to you requesting this zoning change. Once we had gone six months without success and having turned away several prospective tenants because they were essentially professional office uses, we made the decision to start moving forward with this request. One thing I should add at that point, because I want you to have the information I have, is that we finally, as of Monday, have a signed lease on this building. It is Google that we will have as a tenant. So I don’t want to misrepresent. It has taken over a year to lease the building and as I said we had to turn down several prospective tenants along the way. What we were seeing quite frankly is law firms approaching us for instance. There were several other businesses that were interested in general office space. So once again I think it is clear that the building simply is an office building. The property was aggressively marketed throughout this time by Cornish & Carey. The number of actual manufacturers to look at the building was slim. Effectively with the building zoned as General Manufacturing given what in fact is built I think what it amounts to saying is that it will have to be a software company and that is really quite restrictive. I think the proposed change is in the interest of the City and the surrounding community. It does no good for the building to sit vacant for the length of time it laid vacant. Certainly the City collects no utility taxes or anything else on an unoccupied office building. The other thing I would say is the Palo Alto Comprehensive Plan Policy B-8 encourages the renovation and reuse of long-term vacant buildings. I believe long-term vacant is defined as a year and that is just about how long or a little bit more than a year this building was vacant. The proposed change has the support of the business community. In particular, it has the support of the California Avenue Area Development Association and also of the Chamber of Commerce. We also approached local residential groups, the Barron Park Association, College Terrace Residents Association, and the Mid-Town Residents Association and we did that through Lee Weider and his organization. We did not get any pushback from the residential community and I think there is a reason for that which is that the proposed use will be essentially indistinguishable from Agilent’s use of the building. So short of making the argument that we prefer to have this building be empty, I don’t think a resident wil! be able to tell the difference between the proposed uses that would be allowed under the zoning change and what was there before. I think that is true from a traffic perspective. I would be interested to know what the lighting issue is because we did along the way have our lighting consultant go out to the building and look for light spillage, and frankly anything that would be annoying to the surrounding residents and to make recommendations to us about how we might reduce the light profile of the building and we came up empty. The recommendations were that there was nothing recommended to be done to mitigate the light profile of the building. So if there are recommendations, I would be interested to hear them and we would be open to considering them. Cir.’ of Palo Alto July I l. 2007 Page I0 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 That is essentially my presentation. Our argument really is based on if you look at the building, we think it is more aptly described under the ROLM designation. Chair Holman: Thank you. Commissioner Burr has a question for you. Commissioner Burr: Mr. Paul, the reason for bringing up the light spillage issue was that when we were going through our evaluation of the PTOD district zone and part of the discussion is whether this property should be in that district. From the Midtown area, we had a pretty sizable and vocal contingency of neighbors who had cited this building as having had extensive light spillage into their neighborhood. I think that was news to the Commission and the Staff, and pretty much everybody who had gone through previously the approval process (it didn’t go before the Planning Commission). It was something that was a surprise and a concern. So that is the nature of that question. Mr. Paul: It is news to me as well. It is actually all the way from Midtown. I don’t want to debate the point and we are certainly willing to entertain measures to curb the light spillage if we can be convinced that it is real and that there is something we can really do to mitigate it. Mr. Williams: Madam Chair, if I could just add, their concern was actually the interior lights on the upper level that they are ~een and glowing at night. It wasn’t the parking lot lighting or that kind of thing. It was more the interior lights, which would seem to be readily fixed in a number of ways. So it is achievable. Mr. Paul: At this point, of course, we have a tenant and this is something we would certainly discuss with our tenant. The only thing I guess I would point out and would like to speak to is the TDM issue. We do have a lease and it is a long-term lease so there really isn’t much I can do to address traffic issues by controlling that lease because it is already signed. However, I would encourage you to look into Google’s record in terms of being both an environmentally friendly company and a company that is responsible and friendly to the infrastructure demands it makes on the communities in which it is located. I think they have actually an exemplary record and are likely on their own steam to come up with things that the City perhaps hasn’t even thought of on a voluntary basis. We certainly would do everything we could to encourage our tenant but as I say we are under lease at this point. Commissioner Burr: Since we house a good number of Google employees and I think are soon to house at least two others who are going to reside not far from there we may be able to get responsiveness from the corporation if there is any problem. Mr. Paul: I would be surprised if there were a problem with that particular company. Commissioner Burt: Thank you. Chair Holman: Commissioner Keller, you had a question for the applicant and I believe Commissioner Lippert does too. Ci& of Palo Alto July 11, 2007 Page 11 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 32 34 35 36 37 38 39 4O 41 42 43 44 45 46 Commissioner Keller: Yes. In follow up to what Commissioner Burt said I believe that one of the comments from the people in Midtown, and realize that Midtown Neighborhood Association comes all the way to Alma Street. Mr. Paul: Very good. Whether they do or don’t, I take the comment seriously. We don’t want to be unfriendly to the residential community. We want good relations. So if there are things that we can do practically we are certainly willing to entertain them. As I said we tried to be proactive on this issue by retaining a lighting consultant and having him examine the building. I think he may well have been focused more on the exterior lighting because that is what these guys worry about mostly. Commissioner Keller: I have heard the concern and what I understand the concern to be specifically about is the Agilent logo on the top of the building, which is visible at night from the Midtown residents’ area. That when it is turned on in the middle of the night which doesn’t seem to have a need, but when it is it is visible. I think that is specifically what the green glow is just to be precise. I am assuming and, perhaps, Staff can correct me that when that logo is removed because I am assuming that Google doesn’t want the Agilent green logo on the building. Mr. Paul: I think that is a safe bet. Commissioner Keller: That there will be a process involving architectural review of that sign and at that time there won’t be an internally lit sign on the top of the building announcing Google and that may avoid that problem. The second thing is I am pleased that you now have a tenant. To the extent that you can encourage your tenant to work with City Staff on creating a Transportation Demand Management program I think that would be helpful. My knowledge of that tenant is that they would probably be amenable to doing that. I was at a Mountain View City Council meeting yesterday and one of the comments was talking about how proud Mountain View was to have Google where they are located. I observe that they actually started in Palo Alto so it is nice to have them back. Mr. Paul: I think it is good. I think it is very good for the city to have them back. ChairHolman: Commissioner Lippert and then Commissioner Garber, you have questions for the applicant? Vice-Chair Lippert: Just indulge me for a second here. Since you have a tenant what is the urgency in rezoning it to the ROLM District? My assumption is that it is a multi-year lease and that, it like Agilent, Google would comply under the current use and zoning. Mr. Paul: I believe Google does comply under the current use. Of course it was Monday that I knew that we had this tenant. The reason we are not withdrawing the request at this point is Ci.ty of Palo Alto July 11, 2007 Page 12 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 32 34 35 36 37 38 39 40 41 42 43 44 45 because of the difficulty we had. Because at bottom we have put a lot of effort into this and so has Staff and I think this issue will simply come back at some point. There is always the possibility of a sublease at some point in time. It would certainly come back in that context. So what I am asking in essence is let’s resolve this now because I believe it is the right thing for the property and I think it is the right thing for the city and for the surrounding businesses as well. It really should not have taken this long to lease a Class A office building in the cunent market. As I said, we had a number of cases where we had to turn businesses away and that is what finally got us after six months of trying to say that maybe we need to bring this before the City of Palo Alto. I don’t think it is healthy for the city and that it is worthy of your consideration under those circumstances. Just simply looking at the building and asking yourself what is this building? On that basis alone I would put it forward to you. Vice-Chair Lippert: So I just want to go back to my original hypothesis, which I presented to Staff here, which is that it would be a legally existing nonconforming use if Google or a company like Google were to move in say Monday before the rezoning happened. They are moving into a building under the GM zoning and then Council took action and decided to go with a recommendation of an ROLM or a PTOD then they would be in there as a GM use because they are a tenant and they have their permits and everything to go into that building so until such time as they chose to vacate or another entity took that space under that GM zone. So my initial hypothesis was are they taking two bites of the apple? Are they? Chair Holman: If I might, I would like to finish the questions for the applicant and have Staff respond to this when we come back to the Commission for discussion. Commissioner Garber you have a question for the applicant. Commissioner Garber: My questions have been substantially answered. Let’s move on. Chair Holman: I have one question for you, which is a brief one. The Staff-had indicated in the Staff Report that they had spoken to you, the applicant, about a TDM program. I am a little confused because now you say you have a signed leased and TDM discussions were not a part of that lease. So I am a little confused as to why it wouldn’t have been when it was something that the Staff had wanted to be address, unless I am misunderstanding. Mr. Paul: The Staff request for TDM was relatively recent and we were past most of the lease negotiation at that point and down to really the final nuts of the lease, which as you may know can take several weeks. So this was not before us at a time when we could have - let’s put it this way, we would have been risking the lease to bring this up with Google by the time this request surfaced to us. Maybe you can refresh my memory but it seems to me that last week was the first time that I was seeing the request for a TDM plan put before me. Chair Holman: Okay, Staff can respond to that later too. Ci~’ of Palo Alto July 1 i, 2007 Page 13 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 Mr. Paul: I would like to add one other thing. We did, however, confer with a traffic consultant and essentially the way we thought about it is the use that we are proposing wouldn’t be any different from the use of Agilent. Our way of thinking is are we going to impact the community in a way that is substantially negative. It is not like this building was never used. Chair Holman: Okay, thank you. Mr. Paul: We more or less satisfied ourselves through the traffic consultant that there would be no impact. Chair Holman: Okay, thank you. Commissioner Keller, do you have one more question for the applicant? Commissioner Keller: Yes, a quick question. You have had to turn down prior potential tenants. Mr. Paul: Yes, that is correct. Commissioner Keller: Until you got the current tenant. Could you without quantifying that did the amount that you would have gotten from those earlier tenants other than the time value of money, would the rent have been higher from those earlier tenants than the one you got now? Mr. Paul: That wasn’t the issue, no. Commissioner Keller: The second thing is I am assuming that you lost some money from having to wait. I understand that is not relevant. Mr. Paul: We certainly agree that question is not relevant. Of course it costs money to own property, as you know, and to have it vacant but we are not presenting on that basis. We think this is the right zoning for this property. We are not presenting this, as gee, why don’t you help us make money, that is not our position that we are putting in front of the City. Chair Holman: Okay, thank you. We will move forward and try to get you out of here sooner, too. Skip Justman will be our only other speaker tonight. Welcome, Mr. Justman. Mr. Skip Justman. Palo Alto: Good evening, Madam Chair. I am a member of the Chamber’s Board of Directors and the Government Action Committee. The Palo Alto’s Chamber’s Government Action Committee and its Board of Directors recommended approval of the applicant’s request to amend the zoning in the Comprehensive Plan. These recommendations were based upon considerations of the details of land use and its effect on the community’s economic health. With tonight’s announcement that Google is the tenant I would just like to point out that as a real estate attorney who has of{en advised tenants the zoning of the property also affects the tenants and the tenants consider the zoning of property because the zoning can give them more flexibility in their use of the property. The Applicant’s request will give flexibility to Google so Cio, of Palo Alto July 11, 2007 Page I4 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 !0 1! 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 that its uses can change if necessary to meet competitive needs or the needs of Google. The Google employees will contribute to the economic health of our community. Approval of this application is Palo Alto’s first chance to say to Google, welcome. I would sincerely regret ifPalo Alto did not welcome Google by approving this application. This request is the right zoning for this building on this site and at this time and it is the right zoning for a tenant so that a tenant has the flexibility that it needs in using its facilities. Thank you. Chair Holman: Thank you very much, Mr. Justman. With that we will close the public comments and come back to Commissioners for questions if there are any other questions and if not we will go to comments. Curtis, you had an answer to Commissioner Lippert’s question. Mr. Williams: Yes, this use is allowed in either ROLM or GM. So there is not any nonconforming use created by the zoning. There is a nonconforming building under the ROLM if the zoning is changed to ROLM but there is not a nonconforming use. The use is a conditional use generally in GM although this is a continuation of an existing use by just a different user and it is a permitted use under ROLM. So in some ways you could argue it is more conforming with ROLM as far as being a permitted use. I also wanted to just briefly comment on the TDM aspect of it. My understanding is Agilent has worked with our Staff on TDM and that was part of, I think, why they got some different parking requirements and such on the property. Working with a single user like that is generally effective. If this property were divided into multiple tenants it gets more difficult to effectuate some meaningful TDM program. So our thought was if it is going this way then we would like to have some commitment that through the lease process or some other way these people at least get directed to us to work with us. That said, assuming that we are looking at Google going in there you all probably know that Google could probably teach us about TDM. They have some of the most ambitious TDM programs out there. They have transit that takes their employees from the far reaches of the Bay Area to their offices. So my thought is that there isn’t any need to require anything for them to do. We will touch base with them and I am sure they will be cooperative on letting us know what they are doing. I think they will be an asset to the work that we are doing right now in working with the Research Park and others to try to pull together a lot of TDM data and then try to develop a more cohesive TDM program for the area. That, to me, should be an asset for the City. So, assuming that it is Google, I am not sure that there is anything that we could do that is any better than what they would be doing on their own. I am sure Gayle would be excited to make contact with them and find out what they do and try to link into that with some of the other efforts that we have going on. Chair Holman: I have a follow up to that which is this. I presumed when I saw the existing site and the parking on the table that Lorraine provided, it says 680 spaces and 180 deferred spaces. I presume that the reason those were deferred was because of a TDM program. So my overarching question, which is larger than this project although it relates to this project, is those kinds of concessions go with the property not with the tenant is my understanding. So how in the world have these discussions not happened before? I am concerned about this because those kinds of rights go with the property not the tenant. I don’t mean to put you on the spot but this is a big concern. A tenant could turnover in two years and you have gotten a project where you Cir. of Palo Alto duly 11, 2007 Page 15 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 32 34 35 36 37 38 39 40 41 42 43 44 45 have massive amounts of car trips going on and you can’t accommodate the parking onsite because a TDM program isn’t carried on with the property. So I am finding this very disturbing. Mr. Williams: That is one of the problems with not having a use permit. Associated with the use permit is something that would show up and we would have a condition there. Apparently it was a site condition that doesn’t just carry through and isn’t something that is operable constantly so you don’t see it when you go to look at the file that there is a use permit that would be current and would have conditions that we would be looking at. So I don’t know the back~ound on it. I can look into that and see why that wouldn’t show up. Ms. Weiss: I am not sure of the reason why that occurred, however I would think that in the future if there were a problem because of too many trips being generated from the site because that amount of parking is actually in landscape reserve you could revert back to putting some of the landscape reserve back into parking spaces to try to accommodate or alleviate the problem created by the additional trips. Chair Holman: I don’t have any way of knowing if it is even in landscape reserve. I don’t want to delve into this too deep. Ms. Weiss: The project files and the building records have made it quite clear that the amount of parking that was approved for the project was a certain amount and then the difference that would have been required was put into landscape reserve. Staff Reports have made it very clear. Chair Holman: Okay, well that is better to know but it still doesn’t resolve the problem. Our preference would be to reduce the trips. Mr. Williams: Right, but knowing that the reserve is there, too, then there is a fallback but we would certainly prefer not to go in and tell somebody to take their landscaping out. It is the contrary to the intent of what we want to do. Chair Holman: Yes, exactly. So maybe in a larger context, and we are not going to resolve this tonight but we can look into seeing in a broader city way if there is any way we can track this sort of thing. I think Commissioner Burt had a follow up and then Commissioner Lippert. Commissioner Burt: My follow up is related to that landscape reserve. If a tenant in the future, say someone after Google, if we are having faith that a tenant like Google is not going to need those additional parking spaces because they will have their own TDM program. If a tenant wanted to convert that landscape reserve to parking can we place conditions on that that instead of allowing a conversion to parking that we would require a TDM for a future tenant? It is a change in the use of that land. Mr. Williams: Right, I think they would have to come back and then change that because it was approved as a landscape reserve and so in that change I think we could then discuss with them Cir." of Palo Alto July ] I, 2007 Page I6 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 3O 31 32 34 35 36 37 38 39 4O 41 42 43 44 45 46 that our preference would be to develop a TDM program. I think our landscape reserve provision would allow for us to do that. Commissioner Burt: Well, allowing for us to ask them to do that is one thing. Do we have the prerogative to set in place conditions that a future tenant that wanted to convert the landscape reserve to parking we could instead impose the requirements of a TDM program to mitigate or eliminate the need for that additional parking? Agilent didn’t need that parking. Google is not going to need that parking. I am worried about ten years down the road. Would a tenant by right be able to come in and say I want to park more cars there rather than have a TDM program? Would we have any say so on saying no, we want you to have a TDM program and avoid the need for the additional parking spaces? They are converting that land that was put in a reserve but what are the conditions for that reserve? Mr. Williams: I don’t know and I don’t know that we know. One of the things we thought was we would need to do an environmental review if they wanted to add parking. As part of that I think we would have a lot of discretion to say to mitigate that impact and that TDM is a more appropriate way to go. We don’t have some nice mechanism there right now. We will go back and look at the conditions of approval but unless there was some condition of that original approval that said the City has the right to tell you that you shall not covert that. Mr. Williams: The question is if they come back and say they want to now convert that landscape area back to parking and not have a TDM program can we say no? Commissioner Burt: So it sounds to me that one, you are saying some future tenant beyond the upcoming one we would have some degree of control through environmental review, and it also sounds like this may be something that we want to revisit on a more citywide basis as we moved into mandating TDM programs. How do we make sure these programs follow the property and the building and not just the tenant? Chair Holman: Vice-Chair Lippert and then Commissioner Keller. Vice-Chair Lippert: I just wanted to add some additional information here. I guess I should have stated for the record earlier that I was on the Architectural Review Board at the time that this property was reviewed. Now that I think about it, there were several reasons why parking went into landscape reserve. Number one was the proximity of the project to the residential neighborhood, Olive Avenue. At the time there were a significant number of neighbors that were concerned with regard to the impact of this building and the parking on that neighborhood. That is not just a landscape buffer that is there. It is a berm landscape buffer. It actually has a rise to it and the idea was that it was to shield and make the residents across the street feel more comfortable with having such a large facility located there. So the idea was that this parking would go into landscape reserve virtually in perpetuity. Well, the other rationale behind it was at the time we had a 2,000-foot circle around the California Avenue train station and transit center. The idea was that that was also a zone that allowed for parking reduction. So it was both of these components. It was early PTOD or transportation demand management handled through some of the standards that the City had at Cir. of Palo Alto duly 11, 2007 Page 17 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 the time. So that sort of gives you a little bit of background but is sort of a precursor to what we discussed in PTOD in terms of looking at that. It was just handled through those requirements. Chair Holman: Thank you. Commissioner Keller and then Commissioner Garber. Commissioner Keller: Continuing on this theme of general discussion about a building owner or building developer that has particular uses and gets particular concessions based on those uses. I am wondering a couple of things to think about. First of all, we now have a new Transportation Demand Management program that involves evaluations of TDM at a two-year and five-year interval. I realize we are getting into this a little deep, but I am just wondering whether we should think about restarting that clock with every new tenancy or new ow~aer as opposed to just having it be when the building is built originally. You don’t have to answer that question in detail I am just tossing it out as an issue. Similarly, when there are concessions made for particular use immediately, in the instant when the building is to be built, and those concessions may be made that are not justified by subsequent uses of that building, I am wondering whether they should be enforced through deed restrictions. So for example, the idea that you have allowed certain extra allowances such as TDM or setbacks or whatever for various reasons associated with the expected use that if those expectations are made permanent through a deed restriction that it can only be vacated through redevelopment, I think that would provide some degree of permanency for new ova-hers and new USES. Chair Holman: Commissioner Keller, if I might, and at the risk of being abrupt here, I think probably this is a separate discussion we should have. We should focus this discussion, especially given the hour, on this project. While the other is interesting and valid for a later discussion, let’s not go there tonight. Commissioner Keller: Sure, that is all I wanted to say on that. What I want to say however is according to something called "me to-ism." I am wondering if this parcel is rezoned as ROLM as a legal nonconforming use, whether this sets precedent for future parcel owners to follow this path to get increased densitT, increased concessions by going through a rezoning or whether somebody with ROLM would say, how come they have it and I don’t? So I am wondering about the potential for "me to-ism" and the potential for that setting precedent. Ms. Weiss: Just to clarify, it wouldn’t be considered a nonconforming use. It is not the use that is nonconforming. In this instance, it would be the structure that would be a nonconforming structure. Commissioner Keller: Thanks for the correction but nonetheless the nonconforming structure made nonconforming through a rezoning does have potential for precedent value and me to-ism. Chair Holman: Commissioner Garber. Commissioner Garber: Arthur is reading my notes. When we worked through the definitions of the PTOD district part of the reason that we adopted it was because of the flexibility of the use of Cir. of Palo Alto July 11, 2007 Page 18 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 that zone in that it would give us a proactive way of integrating the potential needs of that particular neighborhood in an immediate and non-prescriptive way. I remind us of that because I am curious and I am just going to ask the question again. Is there no way that the PTOD cannot be utilized to accommodate the proposed use of this building? Mr. Williams: I don’t think we believe there is because you have to have a housing component to it and, in fact, the majority of it needs to be housing related and that is just not going to happen with this building. It is too new to expect it to turnover to housing. It is built-out as you can see to pretty much its maximum. So there is not really a potential for more development. What we did start out with was the concept of trying to have some setice uses on the site to at least have some mix in there even if it is not housing. They didn’t feel like that was viable. Again, Google is probably a good model for providing those kinds of uses with their facilities. So hopefully we will still get that kind of component to this project. Commissioner Garber: May I ask one more? On the topic of precedent, having been and currently involved with others in the business community trying to find leases, trying to place potential occupants into this area of the city is particularly a difficult area to be able to find good matches between occupants and what is allowed in the zonings and utilizing existing sizes of buildings and footprints, etc. It is not easy. It is probably one of the more difficult ones in the city. However, I !ook at the map and ROLM certainly seems pretty lonely there as a use. There is the question of spot zoning which hasn’t been addressed but I would like to ask that question. The other one is, is this a viable way of accommodating some of the uses on other properties that this allows that a potential owner or occupant can point to and utilize for their purposes on other lots in this area? Ms. Silver: I can address the spot zoning issue and I apologize for not addressing it earlier. I saw that it was a question. We have analyzed the situation. It is an approximately ten-acre site. I don’t think it is vulnerable for spot zoning. We also have several different districts around that area which is another reason why it probably isn’t susceptible to a spot zoning challenge. Mr. Williams: As far as that precedent issue goes, I think you are looking at this and whether this makes sense in this site. I think it is not hard to argue that this is not a manufacturing site and hasn’t been for a long time. You could probably argue that a lot of those other GM parcels along Park Boulevard are not really GM anymore too and that there would be perhaps justification for some of them, particularly with their existing uses, to request being ROLM instead of GM. So I think there may be some justification for some of those but again I think you have to look at each one and see if there is a compelling reason for those to occur and then look at overall if you want all of those properties to turnover to something that might just become an office park when we are trying to generally encourage PTOD in the area. Chair Holman: I have a couple of questions. Commissioner Garber asked the spot zoning question, it is still a little fuzzy to me. I hear what you are saying I also had understood that it is Ci~’ of Palo Alto July 11, 2007 Page I9 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 fairly isolated even though there are different zones around. I won’t even go down that road especially given the hour. A quick question. I want to have Staff confirm this. Did I understand that the tenant agreed to address any lighting issues that had come up previously? I know that there has been some thought that the 195 Page Mill project might block any light impacts but who knows what is going to happen there? Maybe the most vocal people that have spoken about lighting aren’t the only people who are affected. So did Staff also understand that the tenant is agreeable to addressing all of those lighting impacts? Mr. Williams: It sounded like it for us but I think you need to ask him that. Mr. Paul: Excuse me, but I am not speaking for the tenant. I have no right to speak for Google. We are the owner and we certain can work with the tenant. I believe that for Google to put - and we have an ability to, and once again I say this subject to reviewing the lease, but I think we have a right to control the outdoor lighting at least. The lighting as far as the Agilent sign or the Google simon has to conform to Palo Alto requirements. It is not something we would oppose. So what I would say is we are certainly willing to be cooperative to the extent that we are able given our lease. I think we have a good measure of control at least on the outdoor lighting. Chair Holman: Okay, and you will have conversation with Google to see if they wil! be agreeable to addressing indoor lighting issues? You will have that discussion? Mr. Paul: Yes, we will and also regarding their signage. Although they are entitled to put up what is legal in Palo Alto. Chair Holman: Okay, thank you very much. A clarification on one thing, the 3,110 square feet that is exempt from floor area that was exempt because that was put into I think it was cafeteria previously. So that 3,110 square feet whatever it was before doesn’t matter, but it is 3,110 square feet that was exempt before for specific amenity use for employees. Can that be required to continue as amenity square footage for the current tenant? Again, it is another one of those travel with the property not the tenant. The purpose of that of course is to keep trips down so can we require that to stay in some kind of facility function? Mr. Williams: I guess I am going to throw out the suggestion that that brings it up to the .5 FAR but what we are looking at right now is a .49 plus this common area. That would become nonconforming if it is more than .4 under ROLM and that they could not make it more nonconforming than that. So the only way to me they could do that is to keep that 3,110 square feet as some kind of amenity space. Chair Holman: That is helpful. Thank you very much. Mr. Williams: We can work on that. City of Palo Alto July 11, 2007 Page 20 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 !3 14 15 16 17 18 19 2O 21 22, 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 Chair Holman: Thank you very much for that. I think we would all probably concur that Google would be a fantastic addition to the community, given that and given Google’s history with TDM programs and such I think I understood Staff to say and I will just state it so that it is clear that Staff will still have outreach with them so that Google is very well aware that this ciU is very interested and promotes that kind of program. Mr. Williams: Definitely. Chair Holman: So we will have that kind of conversation. Then I did some quick calculations that the floor area ratio for the existing site, the Staff Report says the FAR is 212,500 square feet. Under ROLM what would be allowed is 171,800 square feet. So the difference is basically 41,000 square feet of nonconforming if we have the zone change and a height differential of 15 feet if we have a zone change. So with that I will hush and Commissioner Burr. Commissioner Burt: I would like to just make one statement and then make a motion. Under the question of what is the appropriate zoning for this area the Commission in previous years as we were going through the Zoning Ordinance Update and as we were under the understanding that after we completed changes in the zones we would be able to go back and look at parcels. This area was one that we had several different discussions on that GM zone is an antiquated zoning for this area. The reason that Agilent had a GM zone for that parcel was because that site was Hewlett Packard’s original sheet metal house. I have an employee who worked there 25 years ago. It doesn’t belong as a GM district down there and the other parcels along the track belong in a PTOD sort of district and not a GM. If we had started from scratch who knows what we would have decided for this parcel, whether it would be ROLM or PTOD, but it wouldn’t be GM. I brought that up for five years that this is crazy that we have it all zoned for GM in that area. We really only have one proper GM district in the city and that is on the southeast side of San Antonio near 101. MOTION So having said that let me make a motion. I move that the Planning and Transportation Commission recommend that the City Council adopt the Negative Declaration and approve the requested Comprehensive Plan Amendment for 395 Page Mill Road from Light Industrial to Research, Office Park land use designation and initiate a zone change from General Manufacturing to Research, Office and Limited Manufacturing. SECOND Commissioner Keller: Second. Chair Holman: Motion by Commissioner Burt, second by Commissioner Keller. Commissioner Burt: So just to speak to the motion, it is important to remember that we are not rezoning the building and we are not rezoning a tenant. As much as we might have opinions about being enthusiastic about the prospective tenant we have to return to our responsibilities on rezoning the land. We do have interrelated issues of the building on the land and it does become CiO, of Palo Alto July 11, 2007 Page 21 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 confusing in that way. This is a building that has a floor area ratio that would not be allowed under the zoning that we are switching it to so that is really the struggle of this that I think most of us have been looking at. For me, when I weigh it against what is the right land use designation, ROLM, for that property with that building that is going to be there for probably 50 years is the right land use designation. The other aspects of what we have been concerned with on some of the requirements that would go along with today’s either a conditional use permit for this building in a GM or a use of a building like this, a little bit smaller if it were to come forward with an ROLM. There are some conditions of approval that we have been talking about that are of concern to us. In those cases it appears that we are going to have to proceed on good faith. There are times where that is not the way we would like to do it, there are times where we have been burned by doing that. In this case, I think it is a good decision to make. Commissioner Lippert talked about the background for that landscape reserve area and Staff has given us adequate assurance that we will have some basis, a decade from now, continue to have the progressive practices of a TDM program that we think are important for that parcel. I think that whether it is this tenant or other good new tenants most of them are going to care about the ability to be welcomed in the community. This spillover lighting issue can be correctable and I expect that that being the other major concern whether it is this tenant or some future one in a decade we can address it. In a perfect world we would be able to condition it but we just don’t have that option before us. So those are the reasons in a nutshell that I am proposing supporting the Staff recommendation. Chair Holman: Did you intend to also include as a part of your motion the environmental assessment that is indicated on the front of the Staff Report to determine that the initial study and Negative Declaration have been prepared in accordance with CEQA? Commissioner Burt: I included the adoption of the Negative Declaration. I believe I stated that. Chair Holman: Okay, I am sorry I didn’t hear you. Commissioner Keller. Commissioner Keller: I think that Commissioner Burt has said things very eloquently and I don’t wish to extend the comments very far in this. However, I will make one comment and ask one question. The one comment I am going to make is that while this particular action is for this particular parcel I agree with Commissioner Burr that part of the land that is to the east of Park Boulevard at the time w-hen we visit this area in a more general capacity as part of the Cal- Ventura assessment we would likely be rezoning that. In particular there is a risk if you will, a danger building will be rezoned to ROLM because that seems to be the use of that building. So that is my comment about that. My particular question is a follow up to Chair Holman’s question about cafeteria space. Now-, I am familiar probably more than most people here about the cafeterias at Google. I am particularly familiar with that because one of my daughters has done a ’Take Your Daughter to Work Day’ at Google several times and in fact a couple of weeks ago volunteered there. So the question is if Google decides as I would suspect that they would take more than 3,110 square feet CiO, oJPalo Alto July 11, 2007 Page 22 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 32 34 35 36 37 38 39 40 41 42 43 44 45 to put in cafeteria space, because if you have seen those cafeterias that Google has they are actually quite sizable, whether that would mean that that would reduce the degree of nonconformance and therefore a subsequent tenant would be unable to convert that space back into office space from the space that Google made into cafeteria space? Do you understand my question? Mr. Williams: Exactly. I don’t know. Theoretically, yes but I would rather not go there at this point. I understand what you are saying that then the actual FAR is even lower and they can’t increase it more than that. So they have to have that amount of amenity space then or else somehow reduce the square footage. Commissioner Keller: Thank you. Chair Holman: Commissioner Garber. Commissioner Garber: Will Staff remind me, the ROLM obviously allows research and development spaces. Are the hazardous materials that are allowed in a GM different than those that are allowed in the ROLM space? I believe they are less but I was just looking for a confirmation. Mr. Williams: I believe there is some language to that effect but I don’t have it. I would have to look it up. Commissioner Garber: I only bring it up because this property is adjacent to residential areas and the rezoning it to ROLM would reduce the potential hazard that is adjacent to it. Just some comments relative to the motion. As much as I am reluctant to change the zoning of a partially compliant zone to one that is again partially compliant, there is no net add difference, benefit, deficit I will support the motion. I think perhaps the reason that I will is for the hazardous materials issue. Chair Holman: Commissioner Lippert. Vice-Chair Lippert: I too will support the motion. I am having a lot of difficulty with it but I will support the motion. Part of my difficulty is that with property owner having a tenant for it I don’t see any urgency in terms of changing the zoning immediately. The fact that it is Google or any other company is irrelevant here. What is important though I think is that in some ways this piece of property is an adjunct to the Stanford Research Park and the intent was that if you had a company that was located in the Research Park this would be one of their manufacturing facilities. The truth of the matter is that manufacturing has moved out of Palo Alto, that in fact we have more research and development here, and we have more administrative offices here than we really do in terms of manufacturing. So, while I have difficulty wanting to change the zoning on this, there really isn’t a compelling reason why we shouldn’t change the zoning on it. I think it is going to pretty much function the way it is going to function anyway. Cir. of Palo Alto July I I, 2007 Page 23 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 DD 34 35 36 37 38 39 40 41 42 43 44 45 46 There is one other minor point that I would like to make. The bonus square footage here associated with the larger square footage in terms of the GM zone versus the ROLM zone I think of in a way as a way of compensating maybe the property owner in terms of the fact that he has to wait for a manufacturing tenant to go into the building. So that is one way of looking at it, you are given more square footage because you are going to get more income for it so those tenants may not come around as easily. So that could be one of the reasons why the additional square footage is associated with the GM zone versus the ROLM zone. That is a minor point here. I am just going to support the motion. Chair Holman: Commissioner Garber you had another comment? Commissioner Garber: Yes, I just wanted to state that I do believe that the applicant is correct in stating that the existing zone does not support the uses for the likely occupants not only for this space but it is an issue for a lot of the spaces in this particular area of the city. I am supportive of this particular act to focus in on the Staffs advice here. My reluctance is that I wish we had a more perfect tool to allow it to occur than the ones that we have available to us. Chair Holman: Just to confirm that as a part of this, the 3,110 square feet that will be required to be in an amenity. Okay, so that is confirmed. This is a bit of a difficult one. Actually it is a fairly difficult one. I find that where I come down is a lonely position. I am not going to be able to support the motion and I will say why. One of the compelling reasons from the applicant’s perspective was that they had been having difficulty finding a tenant. They now have a tenant, which I presume Staff will confirm that they do have Google. Planners are loath to create situations where you are creating nonconforming situations and indeed Staff has opposed this and resisted this for quite some time. As I stated earlier this zone change will create a situation where there is 41,000 square feet of nonconforming space, 41,000 square feet, and a 15-foot height discrepancy. It is 50 feet where 35 feet is allowed in ROLM. So that for me is pretty compelling. Potentially, I don’t know absolutely but potentially, maybe ultimately this will become an ROLM site that is very possible. I agree that the GM is not necessarily the best zone for some of these properties but rather than doing this one parcel at a time I would rather us take a look at this when we can and decide what should or shouldn’t be GM and not do it one parcel at a time. Potentially not doing the zone change now might be able to give Staff more time to figure out how we can best address this deferred parking issue not just with this property but others as well and how that travels with the property. I can’t swear that that can be linked to a future zone change but I would rather not make that change now with that in place where it is. The other thing I think has to go with the broader issue of doing the rezone with the nonconformances is that we are giving without getting. We are not getting a more comprehensive look at what should or shouldn’t be rezoned here. We are doing it one parcel at a time and it is a giving of a lot of square feet. We do have a jobs/housing imbalance here that has been perpetuating over the many years. To change this to ROLM I think just further exacerbates that. So for those reasons I will be opposing the motion and lonely as it is I will still do that for all those reasons stated. City of Palo Alto duly I 1, 2007 Page 24 of 25 ATTACHMENT G 1 2 3 4 5 6 7 8 MOTION PASSED (4-1-0-2, Commissioner Holman voted no, with Commissioners Sandas and Tuma absent). So having said that, all those in favor of the motion to rezone to ROLM and find the Negative Declaration adequate say aye. (ayes) Opposed? (nay) That motion passes on a four to one vote with Chair Holman voting nay. Cir.’ of Palo Alto July 11, 2007 Page 25 of 25