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HomeMy WebLinkAboutStaff Report 428-07FROM: City of Palo o .ONO LE CITY COUNCt ity Manager’s Report CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: SUBJECT: NOVEMBER 26, 2007 CMR: 428:07 IDENTIFICATION OF ISSUES FOR EIR AND DEVELOPMENT AGREEMENT NEGOTIATIONS REGARDING THE STANFORD SHOPPING CENTER; PROJECT UPDATE AND REVIEW OF COMMUNITY INPUT RELATED TO LAND USE, HOUSING, TRANSPORTATION, SUSTAINABILITY AND OPEN SPACE ISSUES; CITY COUNCIL INITIATION OF CHANGES TO TITLE 18 (ZONING) TO REVISE THE EXISTING DEVELOPMENT CAP OF THE SHOPPING CENTER SO THAT PROPOSED ZONING CHANGES CAN BE STUDIED AS PART OF EIR; ANDSTATUS OF ENVIRONMENTAL AND ENTITLEMENT REVIEWS. RECOMMENDATION Staff recommends that the City Council 1) review and provide input regarding key issues related to the Stanford Shopping Center (SSC) Expansion Project to inform the EIR and form the basis of negotiations for the development agreement, and 2) initiate changes to Title 18 (Zoning) to increase the existing development cap for the shopping center so that the proposed zoning can be studied as part of the EIR. BACKGROUND Review for this project has been divided into two phases: Phase I (Information Sharing and Preliminary Area Plan) from December 2006 through July 2007, and Phase II (EIR and Entitlements), from July 2007 through the end of 2008. The Phase I activities helped to focus discussion on key issues of concern to be reviewed during the Phase II (EIR and Entitlement) process. The start of Phase II began with the submittal of development applications on August 13, 2007, for the Stanford University Medical Center (SUMC) and on August 21, 2007, for the SSC..Phase II (EIR and Entitlements) of the review process will culminate with the City Council’s review of the EIR, development agreements, and other entitlement applications. The November 26, 2007 Stanford University Medical Center City Manager Report (CMR 427:07) contains a complete summary of the public meetings held throughout 2006 and 2007, including the November 21, 2007 Planning and Transportation Commission meeting, where the project issues, mitigations, and community benefits were discussed. DISCUSSION The purpose of this meeting is to allow for Council review and comments on the identification of issues to be used for potential mitigation of environmental impacts and as the foundation for negotiations of the Development Agreement, and to initiate zoning amendments that will be further analyzed in the EIR, and which may be part of the Development Agreement. City of Palo Alto Page 1 The November 26, 2007 Stanford University Medical Center City Manager Report contains a complete discussion of the Issues List, compiled by staff, representing a record of a broad spectrum of thoughts about what should be considered in the review and evaluation of these projects and during the Development Agreement negotiations and EIR preparation. The Issues List is contained in Attachment A and the Commission’s recommended modifications to the Issues List are contained in Attachment B of CMR 427:07. Initiation of Proposed Zoning Ordinance Amendments The proposed project would necessitate rezoning to allow the Shopping Center to exceed the existing floor area cap governing the SSC. The rezoning would constitute a portion of the project description for the EIR and the entitlements required. Zoning Ordinance Section 18.98 provides that the City Council may initiate a zoning text amendment. Initiation of the zoning ordinance amendment would allow staff to review and analyze the proposed text changes as part of the EIR and to begin the public review process. It does not in any way imply support for or approval of the revisions as proposed, but begins the review process for evaluation of the appropriate zoning for the project. Attachment A includes the applicant’s proposed text submitted with the SSC application and describing proposed revisions to Zoning Ordinance Section 18.16.060(e) to the cap on further development for the SSC. The proposed text revisions delete and replace the development cap with square footages that incorporate the proposed additional retail/restaurant expansion and hotel. Again, initiation of a zoning text amendment does not bind the City to evaluating only what the applicant proposes, but will allow staff and the Planning and Transportation Commission to recommend zoning that would be compatible with a final recommendation on the project. Hotel Market Study Simon Properties commissioned PKF Consulting to prepare a Market Study of the proposed SSC Hotel. The report analyzed the two alternative locations (Site A at the northwest comer of Arboretum Road and Quarry Road and Site B at the southwest intersection of E1 Camino Real and Quarry Road). Both sites are considered excellent for accessibility, visibility, proximity to demand and long-term strategic potential. Sixty-seven percent of the demand for hotels in Palo Alto is generated from the commercial segment, with the group and leisure segments generating the balance. Hotel occupancy has increased from a low of 61.7 percent to 72.6 percent in 2006. Due to the continued strong demand growth in Palo Alto, occupancy and average daily rates (ADR) should continue to increase over the next several years. The competitive market is expected to stabilize at an occupancy of 78 percent in 2012. PKF recommends that a four-star tier, boutique hotel with a full-service restaurant/bar, will best suit the property at SSC. A boutique hotel product, such as the Hotel Valencia at Santana Row or the Cypress Hotel in Cupertino, or similar, is the strongest lodging product for the market. PKF also finds that the market can support a hotel with approximately 120 guestrooms and should include amenities such as a swimming pool, whirlpool, fitness facilities, approximately 5,000 square feet of meeting space and a full service restaurant/bar. The anticipated ADR could be $250.00, stated in 2007 value dollars, or $287.00 upon opening in 2011. The hotel could also achieve a stabilized occupancy level of 78 percent by its second year of operation. City of Palo Alto Page 2 The City is currently reviewing the report and has requested revisions to broaden the scope of the analysis. When finalized, the report will be presented to the Planning and Transportation Commission and City Council. Proiects Update In addition, the Stanford University Medical Center CMR provides the Council with an update on the following activities: 1) 2) 3) 4) Community Issue Meetings Urban Design Consultant Environmental Impact Report (EIR) Project Timeline. The SSC timeline is contained in Attachment B of this CMR Proiect Information on City Website Detailed project information can be found on the City’s website at www.city.palo- alto.ca.us/knowzone. Additionally, comments and questions can be sent to the City’s Project Manager, Steven Turner, at steven.tumer@cityofpaloalto.org. NEXT STEPS Work will be performed on the EIR and reports to the Commission and Council. development agreement negotiations, with periodic PREPARED BY: STEVEN TURNER Senior Planner DEPARTMENT HEAD: sTEVE EMI Director of Community and Environment CITY MANAGER APPROVAL: 2 BENEST City Manager ATTACHMENTS A.SSC Application Materials Regarding Zoning B.SSC Project Timeline COURTESY COPIES Art Spellmeyer, Simon Property Group John Benvenuto, Simon Property Group City of Palo Alto Page 3 Anna Shimko, Cassidy, Shimko, Dawson, Kawakami William T. Phillips, Stanford Management Company Jean McCown, Stanford University Public Relations Office Charles Carter, Stanford University Planning Office City of Palo Alto Page 4 Attachment A PROPOSED AMENDMENT OF THE PALO ALTO MUNICIPAL CODE Simon Properties - Stanford Shopping Center Expansion Date: 8/20/2007 Revision 1 0~alo Alto Municipal Code Section 18.16.060(e)): Amendment to revise the existing cap on further development of the Stanford Shopping Center. (e) CC District Shopping Center Floor Area Ratio Regulations (1) The maximum floor area ratio for the Town and Country Village Shopping Center shal! be .35 to !; and office uses at said shopping center shall be limited to 15% of the floor area of the shopping center existing as of August 1, 1989. Hotel use shall not be included as part of the .35 to ! maximum floor area ratio, but shall not exceed an additional .25 to 1 floor area ratio, for a maximum site floor area ratio of .60 to 1. (2) The maximum floor area ratio for mixed use development for the Town and Country Village Shopping Center shall be limited to .50 to 1; provided that no more than .35 to 1 floor area shall be nonresidential, consistent with part (1) above, and not more than. 15 to 1 floor area shall be residential. (3) Stanford Shopping Center shall maintain an overall development cap of 1.762.362 square feet, comprised of no more than 1,652,362 square feet of commercial uses and no more than 120,000 square feet of hotel and associated uses. ~*~,,~ ~’~,~ .... v,-~-~-~;~+°~ ÷~ ~,~°~ ~.~. ~ ....,~.~. ~ nn~ squar~ ~ of~*~ *~ ~o’’-~ ~ ......~*~"........ , ............area to ..........................~ ....~ shopping Attachment B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 .~1 ~2 ;’3 ~.4 Tasks/Event City Council initiates process for Stanford Shopping Center Contract process for environmental consultants. Begin baseline data and "existing setting" work regarding traffic, housing, population, city services, etc. City sponsored community meetings regarding baseline data, issues identification P&TC Study Session: review process timeline, community outreach plan, issues identification Application (conceptual) for Shopping Center, including land use/zoning changes P&TC Study Session: Issues identification, project status, community input Zity Council Study Session: Project Update Simon’s communit3, outreach and workshops P&TC review of review process, and issues summary (benefits!ct~atlenges) Report to Council: re~tew of review process, and issues summary (benefits!challenges) Formal application submittal for Development A~eement and land use changes Schematic design- input from staff and A.RB ARB Study Session EIR initiation and preparation Notice of Preparation; project scoping meeting with City Council Community meetings- Issues discussion P&TC Study Session- Issues discussion, Peer review, Project update Eity Council Study Session- Issues discussion, Project update ~AJ~J3 Preliminary Review # 1 Draft mitigation measures and Development A~eement discussions ARB Preliminary Review #2 DEIR released P&TC / ARB public hearing on DEIR / ,~RB Recommendation Prepare Administrative Final ELR and Administrative FEIR / Development A~eement at P&TC FEIR / Development Ageement at City Council Tasks/Event Time~ae Timeane 2006 DeC 18-Dec 2006 Feb Stanford Shoping Center Timeline 2007 Jun 21-Aug NOP 2007 Oct Nov 1-Nov 14-Nov 26-Nov Dec Feb Ar~r May 2008 Jun Aug Sept Oct Nov Jan Feb Mar Apr May Aug Sep Oct Nov Dec Jan Feb Mar Apt May .rul Aug Sept Oct Nov DecJun 2008 Jan 2009 Feb Feb 2009 March March 11/2012007 .