HomeMy WebLinkAboutStaff Report 295-08City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT8
DATE:
SUBJECT:
July 7, 2008 CMR: 295:08
ANNUAL PUBLIC REVIEW AND APPROVAL OF COMPLIANCE
OF DEVELOPMENT AGREEMENT WITH STANFORD
UNIVERSITY FOR THE SAND HILL CORRIDOR PROJECTS
RECOMMENDATION
Staff recommends that the City Council:
1. Find that Stanford University has complied in good faith with the terms and
conditions of the development agreement for the 2006-2007 reporting period.
Direct staff to issue a Certificate of Compliance to the University, according to the
provision of Section 10(a) of the Agreement, stating that:
a. The Agreement remains in effect, and
b. Stanford University is not in default.
BACKGROUND
In June 1997, the City Council approved Comprehensive Plan amendments, zoning
changes and design applications, for the Sand Hill Corridor Projects (Projects). The
Projects included the Stanford West Apartments (Apartments), Senior Housing, Shopping
Center modific.ations and a set of roadway modifications, including the widening of Sand
Hill Road to four lanes from Santa Cruz Avenue to Arboretum Road and a two-lane
extension from Arboretum Road to E1 Camino Real. A development agreement vesting
these approvals was entered into between Stanford and the City and was effective on
August 14, 1997. The development agreement requires annual City Council review of
Stanford’s compliance with the provisions of the agreement.
DISCUSSION
The attached April 23, 2008 memo from Stanford Management Company describes
Stanford’s 2006-07 activities related to implementation of the development agreement.
The development agreement calls for Stanford to demonstrate good faith compliance with
specific conditions identified in a separate attachment to the agreement. The annual
compliance review process provides the City and the public an opportunity to
CMR:295:08 Page 1 of 3
periodically review the project’s implementation and ensure compliance with the project
conditions. Construction related to the Sand Hill Road Con’idor Project was completed
during earlier reporting periods. As a result, most of the implementation measures in the
agreement were reported in previous years. Post-construction activities that were
completed or were ongoing during the past reporting period include:
The on-site retail store at the Stanford West Apartments continues to operate;
Stanford is subsidizing the store to offset the on-going loss from operations.
The Senior Housing Care Center is now completely operational with completion of
the Skilled Nursing element in October 2006.
The Roads phase of the Sand Hill Road Project is now completed.
The results of the historical archaeological investigations for the Senior Housing
project were published by Pacific Legacy Incorporated. The archeological report, is
entitled The Historic Archaeological Investigations at the Stmford Mansion, Leland
Stmford Jr. Mausoleum, and CA-SCl-623/H.
The Stanford West Apartments are now in the seventh year of ~operation and the
number of Below Market Rate (BMR) units remain at 105 units in accordance with
the development agreement,
A post-construction acoustical study completed in July 2006, determined that no
additional noise-related mitigations are required.
An application has been submitted to the City of Palo Alto by Simon Property Group, the
lessee and operator of the Stanford Shopping Center, proposing to expand the Stanford
Shopping Center by approximately 250,000 square feet plus an addition of a 120 plus
room hotel.This expansion would require amending the Sand Hill Development
Agreement.
The terms of the Sand Hill Development Agreement shall continue through August 14,
2012 or until earlier terminated by mutual consent of the parties involved in the
Agreement.
RESOURCE IMPACT
There are no resource impacts from the development agreement compliance program that
affect the General Fund.
POLICY IMPLICATIONS
This report does not represent any changes to existing City policies.
CMR:295:08 Page 2 of 3
ATTACHMENT
April 23, 2008 memo from Jim Inglis, Stanford University
PREPARED BY:
ROLAND A. RIVERA
Senior Planner
DEPARTMENT HEAD REVIEW:
CURTIS WILLIAMS
Interim Director of Planning and Community
Environment
CITY MANAGER APPROVAL:
KELLY ’ST~
Interim Deputy City Managers
cc:Stanford University (Jim Inglis)
Stanford University (Larry Horton)
City of Menlo Park (Arlinda Heineck)
County of Santa Clara (Val Alexeeff)
County of San Mateo (Lisa Grote)
Bill Phillips
Jean Snider
CMR:295:08 Page 3 of 3
STANFORD UNIVERSITY
Attachment i
Roland Rivera
City of Palo Alto
Department of Planning and Connnunity Environment
250 Hamilton Avenue
P.O. Box 10350
Palo Alto, CA 94303
Ap~123,2008
RE: Sand Hill Road Corridor Projects Annual Report - August 2006-July 2007
Dear Roland:
Pursuant to the 1997 Development Agreement between Stanford University and the City of
Palo for the Sand Hill Road Corridor Project, this report is provided to the City as part of its
review of that Agreement for the period August 1, 2006 to July 31, 2007.
Stanford continues to comply with the terms of the Agreement.
Construction
Construction relating to the Sand Hill Road Corridor Project, including the Stanford Shopping
Center, Senior Housing Project, Stanford West Apartments and the ’Roads’ portion of the
Project, was completed during earlier reporting periods. Highlights of the post-construction
activity for the current reporting period are summarized below:
Stanford West Apartments
The Stanford West Apartments are now in the seventh year of operation.
In accordance with the terms of the Development Agreement, the Below Market Rate
("BMR") units remain at 105 units. A detailed BMR report is submitted to the Palo
Alto Housing Corporation each year consistent with the Agreement.
The on-site retail store opened June 2, 2002. The store continued to be open during the
reporting period. Stanford continued to subsidize the store to offset the on-going loss
from store operations.
Senior Housing
The first two elements of the Care Canter-Assisted Living and Memory Support-were
completed in December 2005, during the prior reporting period. With completion of
the Skilled Nursing element in October 206, the Care Center is now completely
operational. The Independent Living Units were 100% reserved during the reporting
period.
S T A N F O R D REAL ESTATE OFFICE
2755 Sand Hill Road, Suite 100 " Menlo Park, CA 94025 ° T: 650.926.0300 ° F: 650.854.9268
Mr. Roland Rivera
Page 2 of 2
April 23, 2008
The results of the historical archaeological investigations for the Senior Housing
Project were documented and published during the reporting period. The report
includes findings relating to the excavations at the Stanford Mansion site, findings
relating to the removal of the Leland Stanford Jr. Mausoleum, historic features noted
during demolition of the Old Children’s Hospital, and monitoring during construction
of Classic Residence by Hyatt. The archaeological report is: The Historic
Archaeological Investigations at the Stanford Mansion, Leland Stanford Jr.
Mausoleum, and CA-SCL-623/H, Stanford Campus, Stanford, CA by Pacific Legacy
Incorporated was issued March 2007.
Stanford Shopping Center
The Stanford Shopping Center ("SSC") was sold to Simon Properties Group ("SPG")
in 2003. On November 17, 2003, the City Council approved the Assig~maent and
Assumption Agreement transferring SSC performance responsibilities under the 1997
Development Agreement from Stanford to SPG Center, LLC.
Roads
The post-construction acoustical study comparing post-construction noise levels along
Sand Hill Road between E1 Camino Real in Palo Alto and Sharon Heights in Menlo
Park with pre-construction noise levels was completed during the reporting period.
The final acoustical evaluation was issued July 27, 2006. Based on that study and
criteria set forth in the Mitigation Monitoring Program, it was determined that no
additional noise-related mitigation was required under the 1997 Development
Agreement.
Enclosed is a check (No. 826540; April 22, 2008) in the amount of $2,000.00, as payment for
costs incurred by the City as part of its annual review of the Agreement.
Sincerely, ~
Jirh. Ifiglis
Dir~cl~or of Design and Construction