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Home My WebLink AboutStaff Report 448-09City of Palo Alto City Manager's Report TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: DECEMBER 7, 2009 REPORT TYPE: INFORMATION REPORT DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 448-09 SUBJECT: 2008-2009 Annual Review of Compliance with the "Mayfield" Development Agreement with Stanford University This is an informational report and no Council action is required. EXECUTIVE SUMMARY The "Mayfield" Development Agreement with Stanford University adopted in 2005 requires City Council review of Stanford's compliance with the agreement on an annual basis. This report covers activities during the fiscal year 2008-2009. / BACKGROUND In May of 2005, the City Council entered into an agreement with Stanford University which grants rights to Stanford for certain specified development subject to the limitations and conditions in the agreement. The general terms under the agreement are as follows: • Stanfora will lease the Mayfield Site at the comer of Page Mill Road and EI Camino Real to the City for fifty-one years for use by the City as a public soccer complex. • The City, in tum, will grant to Stanford the right to demolish and relocate 300,000 square feet of existing office development located at 2450, 2470 and 2500 EI Camino Real and at 1451, 1501, and 1601 California Avenue, and build 250 dwelling units on the redeveloped sites. • Stanford will have the right to use the 300,000 square feet and other existing or rebuilt square footage in the Research Park for office/research and development uses until the agreement expires. • Stanford will also be permitted to exceed the floor area ratio currently allowed on certain sites by no more than twenty five percent but cannot increase the total square footage available for non-residential development for the entire Research Park. CMR:448:09 Page 1 of5 • The City will accept the lease of the Mayfield site as mitigation for any community service impacts on the City resulting from all future development at Stanford that was authorized by the General Use Permit approved by the County of Santa Clara in December of 2000. • The City agrees not to reduce the floor area ratio in the Stanford Research Park prior to 2011. As part of the agreement, Stanford is required to submit an annual report to the City on the status of the housing development allowed under the agreement and any building activity in the Research Park. The Director of Planning and Community Environment conducts the City's annual review to verify Stanford's compliance with the Agreement based on information submitted. DISCUSSION The August 17, 2009 memo from Stanford Management Company (Attachment A) describes Stanford's 2008-09 activities related to implementation of the Development Agreement. No additional square footage was built or approved in the Research Park during this reporting period. During the 2006 review, 100,000 square feet of replacement square footage and 330,000 square feet of associated square footage were approved for the VMware project at 3401 Hillview A venue, leaving 200,000 square feet of replacement square footage available for development under the terms of the agreement. Stanford is entitled to use the remaining 200,000 square feet allowed under the Development Agreement only when it has committed to building a housing project on the sites made available by the demolition of the office developments at the EI Camino Real and California Avenue sites. The Development Agreement requires an application for at least some of the housing to be submitted to the City by 2013. Within the last year, Facebook has occupied some of the vacant office space on these properties since the housing is not anticipated to be developed in the near term. Attachment B is a table depicting the current status of the development allowed under the agreement. After evaluating the information in Stanford's annual report, the Director of Planning and Community Environment has determined that Stanford University has complied with the terms and conditions of the development agreement for fiscal year 2008/2009. RESOURCE IMPACT There are no impacts stemming from the review of the development agreement compliance program that affects the general fund. POLICY IMPLICATIONS This repol). does not represent any changes to existing City policies. I CMR:448:09 Page 2 of5 ENVIRONMENTAL REVIEW This is an infonnational report and is not a project under the California Environmental Quality Act. No environmental assessment is required. PREPARED BY :i""'r---;;"''--~-+-~'--7'F---;~----- D EP ARTMENT HEAD REVIEW: __ r'l::>...A/t1 i'dJ---::-~~r""""""-. '\<--=-: \\(\"'-"""' "" =-.:..==---__ _ ~&i~ CITY MANAGER APPROVAL: ATTACHMENTS Director of Planning and Community Environment A. August 17, 2009 Memo from Jean Snider -Stanford Management Company B. Table of Status of Development under Mayfield Development Agreement r I CMR:448:09 Page 3 of5 Attachment A STANF()RD UNIVERSITY .August 171 2009 'Mr. Steve Emslie T)irectbrofPlanning and Community Envlr@~eIlt CltY6f'P~lti Alto .. :25:f;}'EIat11iltt5U"A.vehue P~lQ AltQ; CA943tl1 . :HAND DELIVERED UearSteve: Ptrrsuant to Section "1 0.1 of~he DevelQpmeftt bgre~m.~nf{1he "Agreemept~') da.tedMay.24. 2005 between The. Beatd dfTrustees ef1heLeland8tanf0rd Jppipr Umversi~y'{(.~tartf{)rd") ~Q4.,~h¢CjtY'iJfl~;;dpAltp {"City',:1., Stanfhtd is teqUiteato silbmit'a.brief a.Dll,1!al1"~PQJ1:'0,n the·:stat1:l~ Qf'U1en~:)l.t~in:g, ,$ fhatl~rm. is d~fuleQ jfl-tbeAgr~-etneflt,and,bult.dirigacttYity in the$ta,nfardR'e$~rch ;Pprlt~ Tntbe :order~p.e~med1.nlhe Agreem~nt, ihe'Qullam!ractlvity thafhas ocour.red in the past year incllidesthe f&Uowin'g: . . (i) ,addtti()ooisf/UiJl1e/b.o.tage.fJPfJ'11av'eil:tif!li1or built 'inJheBeseartih I>."rk:1'h~re w~no ~dditi<)pal~q:ta!lr~ 'f9phtge al'~fov~dorootiS'trtlQ'tedinih~:&~atchP,atkJn tne past year. (ii)tdlyenfi!J1g£s [,liStle bvuruJa.ries with a map indicatIng the changes:· There were no :cha:ngest~ Site'bOl,liQ.qarWs fnthe last year. Oi~)ReJ11ac:ement Sf/tIme Footage built and :AssocintBil Sq:uare Footage used during tire 'pfe~i6i1s, Vear:aha.'·sinae tne.E(fociive Date,,·SlftcetheEffec:tive pat~~ lOP;()OO ~qua;refeetofJt~p1ac.¢tnep;t .Square FOQtage, ,and 33 ()"o.OO square feet6fAssQci~1ed Square t:OQtag~ }lI;1ve neenappfov.eg and COl1s{JJlOted now that '.the projectat 340J HillvIew Avenue has·oeencompletea. . . , . {iv' 4JlPlicatio'flsfor aatlin.onal square: (ooutge signed orauthorizedhy-Stan:f()rd. by Site; wlth.thegJ!antity :oCnew square faotage lOr ench: There are no applications for additiona1square footage signed orauthorlzed by Stanford that incorporate additional square footage. S TA N FO R D REAL ESTATE OFFICE '1 -r .• Mr. SteveRmslie August 17. 2009 Page 2 (v) Hou.sing,uni~s under construction during the previous vear andsince the. E((e.ctive Date: No Housing has been constructed,in the last year or since the Effeptive Date. Attached to this summary is a more detailed table of the building ·activity in the Research Park Thi:s table accounts for the cumulative bliilding activitythathas taken:p1acein the Research parl.{since the in~ptjotJ of the Agreement. PleaSe Jet me know if any {)f the aboveinfonnation or the attachments needs further clarification. Sineerely~ ~ ..• Managing Director, Stanford Real Estate cc: RobenReidy DebraLiZ,l,lmwalt Larry Horton Jean McCown Bill Phillips Attachment B Status of Development under Mayfield Development Agreement ~', Commercial Development Rights Replacement Square Footage Vested ApJ2roved Remaining Phase 1 Replacement Sauare Footaae 100,000 10'0,000 0 Phase 2 Replacement Square Footage 200,000 0 200,000 Total 300,000 100,000 200,000 Associated Square Footage Vested Approved Remaining 1,200,000 330,000 870,000 Designated Projects* Associated Replacement Square Feet Square Feet Designated Site DeSignated Project Designated DeSignated Total Project Square Feet Project 1 3401 Hillview 330,000 100,000 430,000 Non Designated Projects in Stanford Research Park Project AQplication # Address Demolish Proposed Net +/-FAR 06PLN-00000-00157 3412 Hillview Avenue 68,278 73,978 5,700 CMR:448:09 Page 4 of5 --.-.. -................. ~- Status Completed Status Completed ~ !=O r.. I: to * Projects subject to the Development Agreement -', Housing Development Guarantee Housing Development Rights AQglication before Agplication before .12/31/2013 1213112020 Total Guaranteed Dwelling Units 185 65 250 Dwelling Units wi Applications to date 0 0 0 Dwelling Units Constructed to date 0 0 0 Remaining Guaranteed Dwelling Units 185 65 250 Existing Sguare Housing Sites Site Acreage Footage Demolished 1451 California 4.52 68,552 0 1501 California 3.93 69,793 0 1601 California 8.52 151,915 0 2450 EI Camino Real 0.58 12,780 0 2470 EI Camino Real 0.58 12,780 0 2500 EI Camino Real 0.64 14,300 0 18.77 330,120 0 CMR:448:09 Page 5 of5 Housing AQplications Housing Constructed 0 0 0 0 0 0 o. 0 0 0 0 0 0 0