HomeMy WebLinkAboutStaff Report 446-06TO:
FROM:
City
City of Palo Alto
Manager’s Report
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
13
DATE:
SUBJECT:
DECEMBER 18, 2006 CMR: 446:06
CITY COUNCIL AUTHORIZATION TO COMMENCE THE PROCESS
FOR REVIEW OF THE STANFORD SHOPPING CENTER PROJECT;
APPROVAL OF REIMBURSEMENT AGREEMENT; AND
AUTHORIZATION FOR THE CITY MANAGER AND CITY
ATTORNEY, WITHASSISTANCE FROM THE DIRECTORS OF
PLANNING AND COMMUNITY ENVIRONMENT AND
ADMINISTRATIVE SERVICES, TO NEGOTIATE AN AMENDMENT TO
A DEVELOPMENT AGREEMENT.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to commence the process for
review of the Stanford Shopping Center development project, according to the process and
timeline outlined in Attachment A; authorize the City Manager to sign a reimbursement
agreement to recover the costs of project review (Attachment B); and authorize the City Manager
and City Attorney, with the assistance of the Directors of Planning and Administrative Services,
to negotiate an amendment to the Sand Hill Corridor Development Agreement.
BACKGROUND
On December 11, 2006, Simon Property Group Inc. presented the City Council with concepts for
the expansion of the Stanford Shopping Center. The proposal included the addition of
approximately 240,000 square feet of new retail area, 1,100 new parking spaces in expanded
parking structures, and a 120-room, 100,000 square foot hotel with retail, restaurant, conference
and meeting room areas and a 120-car parking garage.
At the study session, the City Council asked questions of staff and the proj ect representatives and
provided initial comments regarding the proposed development. The City Manager indicated that
staff would return to the City Council to present an outline of the review process and a timeline
for the required rezoning and other entitlements, Comprehensive Plan amendment, and
formulation of an Amendment to the existing Development Agreement, as well as the
preparation of a joint Environmental Impact Report covering the Shopping Center and Stanford
Medical Center projects.
CMR: 446:06 Page 1 of 5
DISCUSSION
Staff has developed a preliminary timeline for review, identified some initial issues and
community benefits for public discussion and future negotiation, and prepared a Reimbursement
Agreement to recover the costs of project review.
Proiect Review Process and Timeline
Staff has prepared a tentative project timeline that outlines a suggested review process with
important milestones identified over the next eighteen months (Attachment A). The project
timeline has been divided into two phases: Phase I (Information Sharing and Identification of
Benefits and Challenges) from December 2006 through July 2007 and ’Phase II (EIR and
Entitlements) from July 2007 through July 2008. The key components of the process include the
following:
Phase I: Information Sharing and Identification of Benefits and Challenges
Phase I would begin with the City Council’s direction to initiate the review process for the
Stanford Shopping Center project and would encompass approximately six months of review.
The intent of Phase I is to collect and synthesize information to share with the applicant, the
public, the Planning and Transportation Commission, and the City Council and to identify the
key benefits and challenges of the project. This information-sharing and issues discussion will
provide background for and help to focus discussion on the primary issues of concern during the
Phase II entitlement process.
The activities anticipated during Phase I include:
Contract proposals and retention of traffic, environmental, economic, urban design, and
other consultants to assist with the review.
Submittal of conceptual project information and application for the project.
Analysis of the "existing setting" of the Shopping Center project and preliminary impacts
on traffic, housing, population, and city services.
Review by economic and market consultants of the desirability and viability of retail and
hotel uses at the Stanford Shopping Center site.
Community workshops to inform the public of the project, preliminary data collection
and analysis, and key issues.
Study session reviews and hearings with the Planning and Transportation Commission to
solicit input and direction regarding the project issues.
A report to the City Council in July of 2007 regarding the project status and a summary
of expected benefits and challenges.
Phase II: EIR and Entitlements
Phase II would begin in July, 2007 following City Council’s review of key project issues. The
intent of Phase II is to proceed with the development of the Environmental Impact Report (EIR)
and project entitlements, including rezoning, a Comprehensive Plan amendment, and an
Amendment to the existing Sand Hill Corridor Development Agreement. The activities
anticipated during Phase II include:
CMR: 446:06 Page 2 of 5
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Submittal of a detailed project application, including a request for an Amendment to the
Sand Hill Corridor Development Agreement.
The preparation of a Draft Environmental Impact Report (EIR) to cover both the Stanford
Shopping Center and Stanford Medical Center projects would begin with a Notice of
Preparation and scoping meeting for public input.
Ongoing collection and analysis of detailed information related to the environmental
review and economic benefits and impacts of the project.
Identification of project impacts and mitigation measures in the Draft Environmental
Report (DEIR), which would then be released for public review.
Negotiations with the applicants regarding key Development Agreement issues and
pertinent mitigation measures.
Planning and Transportation Commission reviews regarding the project status, key issues,
and development applications.
Preliminary design review meetings with the Architectural Review Board.
Community workshops and other public outreach.
Public hearings on the DEIR with the ARB and the Commission.
Preparation of a Final EIR (FEIR).
Preparation of an Amendment to the Development Agreement and zoning and
Comprehensive Plan amendments.
Public hearing(s) on the FEIR, .rezoning and other entitlements, Comprehensive Plan
amendment and amended Development Agreement with the Commission for
recommendation to the City Council.
Public hearing(s) and final decision(s) by the City Council in July, 2008.
Community Outreach
Each phase of the process would include opportunities for public outreach and public
participation. Staff will establish a website for the project and will conduct City-sponsored
community workshops for neighborhood, business, and other community groups throughout each
phase. Study sessions and public hearings with the Planning and Transportation Commission and
ARB will provide further opportunities for public input. Staff anticipates that the Shopping
Center applicants will also initiate public outreach efforts to the affected community.
Planning and Transportation Commission Review and lnput
On December 13, 2006, the Planning and Transportation Commission held a study session to
review the review process and timeline for the Medical Center and Shopping Center projects and
to provide input on the process for Council consideration. Minutes from the meeting will be
available to the City Council by e-mail and at places and to members of the public at the meeting
on Monday, December 18, 2006.
The Commission will provide frequent input to the formulation and progress of the Shopping
Center and Medical Center projects, including initial identification of benefits and challenges,
review of the preliminary Medical Center Area Plan, scoping for the EIR, and hearings for the
EIR and project reviews.
CMR: 446:06 Page 3 of 5
Discussions of Mitigation Measures and Community Benefits
It is anticipated that the development will have a variety of land use impacts. The CEQA process
is designed to fully identify, analyze and, where feasible, mitigate these impacts. The CEQA
process will not only examine current project impacts, but will also analyze cumulative impacts
associated with other development anticipated during the project build out phase. Because a
development agreement would "freeze" certain development standards, State law authorizes
local agencies to impose through the development agreement process additional public benefits
which do not have a direct nexus to project impacts. As part of the CEQA and development
agreement negotiation phase, the City will identify key mitigation measures and community
benefits that would minimize project impacts and provide for appropriate amenities for the area
and community as a whole. The following areas will likely be addressed in this process:
1.Traffic, transit, and parking programs and improvements
2.Housing provisions or fees
3.Project sustainability/green building components .....
4.Public infrastructure improvements and permanent easements
5.School impacts
6.City services impacts
7.Development impact fees, payments and other exactions
8.Protection of scenic views
9.Public meeting and conference facilities as part of the hotel
10.Allocation of out-of-state use taxes directly to State of California
11.Urban design, especially E1 Camino Real frontage and open space elements
12.Impacts on University Avenue shopping area
13.Construction impacts
Staff anticipates initial discussions with the applicants on these and other impacts, issues, and
benefits, and identification of key remaining issues for public review and consideration by the
Planning and Transportation Commission and City Council.
RESOURCE IMPACTS
All costs of review for the Shopping Center project are expected to be reimbursed by the Simon
Group. A Reimbursement Agreement (Attachment B) has been prepared by the City Attorney’s
Office outlining the reimbursable costs that would be incurred during the preliminary project
work in Phase I and subsequent work on the EIR and Development Agreement in Phase II. Costs
to be recouped include, at a minimum, time and expenses of:
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City staff and outside project management,
In-house or outside legal staff,
Economic review and marketing consultants,
EIR and traffic consultants, and
Other costs associated with services and materials provided by third parties to the City.
Other resource impacts will be a key element of the evaluation of the project’s impacts and
benefits. Preliminary estimates of potential resource impacts were provided in the December 11,
2006 CMR (Attachment C).
CMR: 446:06 Page 4 of 5
POLICY IMPLICATIONS
The Comprehensive Plan policies and programs relevant to the development of the Shopping
Center have been included in the City Manager Report (CMR) prepared for the December 11,
2006 study session. The CMR is included Attachment C.
ENVIRONMENTAL REVIEW
The request for City Council’s authorization to proceed with the review process is not considered
a "project" per the California Environmental Quality Act. A complete environmental analysis
would be prepared when the applications for the Development Agreements are submitted to the
City.
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
STEVEN TURNER
Senior Planner
Direct of Planning and Community Environment
FRANK BENEST ’
City Manager
ATTACHMENTS
A.Tentative Stanford Shopping Center Timeline
B.Reimbursement Agreement
C.December 11, 2006 CMR re: Stanford Shopping Center
D.Verbatim Minutes of the Planning and Transportation Commission meeting of December
13, 2006 (at places)
COURTESY COPIES
Jean McCown, Stanford University
Charles Carter, Stanford University Planning Office
Bill Phillips, Stanford Management Company
Art Spellmeyer, Simon Property Group, Inc.
CMR: 446:06 Page 5 of 5
Attachment B
DRAFT - FOR DISCUSSION PURPOSES ONLY
MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF PALO ALTO AND
SIMON PROPERTY GROUP FOR RE IMBLTRSEMENT
OF DEVELOPMENT AGREEMENT COSTS
This Memorandum of Understanding regarding
Reimbursement of Development Agreement Costs ("Reimbursement
Agreement") is made and entered into the 19th day of December,
2006, by and between the City of Palo Alto ("City") and Simon
Property Group, a Delaware corporation ("Simon").
RECITALS:
A. Simon intends to submit an application for a
Development Agreement to add approximately 240,000 square feet
of retail and to construct a 120 room hotel at the Stanford
Shopping Center ("Proposal");
B. On December ii, 2006, the City Council of the
City of Palo Alto conducted a Study Session regarding Simon’s
Proposal.
C. The Proposal will require various City
entitlements which will take substantial time to process. To
create more certainty in the entitlement process and to promote
comprehensive planning, Simon proposed entering into a
Development Agreement with the City;
D. On December 18, 2006, the City Council directed
the City Manager and the City Attorney, with assistance from the
Director of Planning and Community Development and the Director
of Administrative Services, (collectively "City Staff") to begin
preliminary discussions with Simon regarding its Proposal;
E. On December 18, 2006, the City Council further
directed City Staff to negotiate a Reimbursement Agreement with
Simon to recoup certain costs associated with Simon’s Proposal;
F. City Council Resolution No 6597 authorizes the
City to enter into a Development Agreement with any person
having a legal or equitable interest in real property for the
development of property within the City or within the City’s
sphere of influence;
061212 syn 0130033
G. City Council Resolution No. 6597 requires the
applicant for a Development Agreement to pay the fee prescribed
by the municipal fee schedule;
H. The 2006.07 Planning Department Fee Schedule is
attached hereto as Exhibit A and incorporated into this
Reimbursement Agreement by reference;
I. The parties desire to begin preliminary work and
discussions regarding certain preliminary matters before Simon
files a formal~ Development Agreement Application without the
City incurring out of pocket or staff costs in connection with
such work; and
J. The parties wish to memorialize their agreement
for Simon’s reimbursement to the City of certain costs.
NOW, THEREFORE, the parties agree as follows:
I. Simon shall reimburse the City for the following
¯ listed costs reasonably incurred by the City after December 18,
2006 in connection with the City’s review and consideration of
Simon’s Proposal:
(a) reasonable fees and expenses charged by the
consultant or consultants retained by the City to assist in the
preparation of the Environmental Impact Report (’~EIR")
evaluating the Proposa! and the separate proposal for expansion
of the Stanford Medical Center, and for studies or analyses
prepared for or used in the EIR, including but not limited to
the Citywide Traffic Study, shall be paid by Stanford in
accordance with the Reimbursement Agreement between the City of
Palo Alto and Stanford, dated December 19, 2006;
(b) reasonable fees and expenses charged by the
consultant or consultants retained by the City to conduct
economic and/or housing needs analyses of the Proposal, whether
or not such analyses are utilized in the EIR;
(c) reasonable fees and expenses charged by the
consultant or consultants retained by the City to peer review
the key retail or hotel planning standards pertaining to the
Proposal;
(d) reasonable fees and expenses charged by
outside legal counsel retained by the City in relation to the
Proposal;
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(e) reasonable fees and expenses charged by the
consultant or consultants retained by the City to provide
planning services in connection with the Proposal;
(f) documented reasonably incurred City staff,
including but not limited to in-house legal staff, time and
expenses incurred in connection with the Proposal; and
or services
connection
Costs").
(g) the reasonable costs of any other materials
provided to City by other third parties in
with the Proposal (collectively "Reimbursable
In each instance where a consultant is to be retained by the
City to perform work for which the City will seek reimbursement
under this Agreement, the City shall provide Stanford with a
scope of work and budget for the consultant’s services and
expenses prior to commencement of work by the consultant, and
the City shall meet and confer within five (5) business days of
presentation of the documentation with Simon to attempt in good
faith to reach agreement upon the amount of Reimbursable Costs
that will be incurred by the consultant. Further, before the
City decides to expand the consultant’s scope of work to
increase the amount paid to the consultant beyond the budgeted
amount, the City shall provide Simon with the revised scope of
work and/or revised budget for the consultant’s services and
expenses, and the City shall meet and confer within five (5)
business days of presentation of the documentation with Simon to
attempt in good faith to reach agreement on the amount of any
additional Reimbursable Costs that will be incurred by the
consultant.
2. Any consultants, attorneys or other third parties
hired by~ the City to assist in the Proposal shall be directed
solely by the City. Simon shall not direct, influence or
control their work or conclusions in any way.
3.The Reimbursable Costs shall be paid in
accordance with the terms of this Reimbursement Agreement and
the City of Palo Alto Planning Department Fee Schedule attached
hereto as Exhibit A and as amended by City Council from time to
time.
4. Should Simon determine, in its sole discretion,
that the amounts for which City claims reimbursement under this
Agreement are unreasonable, it may cancel this Memorandum upon
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061212 syn 0130033
fifteen (15) calendar days written notice to City after which it
shall no longer be obligated to reimburse City for any
subsequently incurred costs. If Stanford cancels this
Memorandum, City may, in its discretion, stop work on the
Proposal,including any applications filed in connection
therewith,which shall toll all applicable time periods
governing City’s processing, consideration or action upon any
such applications until such time as the parties have resolved
their differences. Further in the event of cancellation under
this paragraph, Simon shall not assert any claim under the
Permit Streamlining Act. If for any reason Simon decides not to
proceed with the Proposal, it shall promptly notify the City in
writing and the City, its consultants, and their subconsultants
and its outside counsel immediately shall cease performing work
in connection with the Proposal. In the event of such
cancellation, Simon shall not under any circumstances be
responsible for Reimbursable Costs incurred after thirty (30)
days following the cancellation notice, except that Simon shall
be responsible for any Reimbursable Costs charged by third
parties under fixed price existing contracts.
5. The City shall bill Simon for the Reimbursable
Costs ~on a monthly basis by providing documentation to Simon
that is sufficiently detailed to enable Simon to review the
reasonableness of the costs incurred and to determine whether
the costs are consistent with the scope of work and budget for
each consultant. The City shall use its best efforts to submit
documentation of any amounts described in paragraph~ l(f) to
Simon no later than the last day of the month following the
month in which the costs are incurred. Simon shall pay
reasonable Reimbursable Costs within 30 days of its receipt of
the invoices and documentation described in this paragraph.
6. Simon shall make a deposit of $150,000.00 within
I0 days of execution of this Reimbursement Agreement. The funds
shall be deposited in a seqregated interest bearing account and
the funds so deposited and the interest earned thereon shall be
credited to the initial Reimbursable Costs, as such become due
as provided in this Reimbursement Agreement.
7. All notices hereunder will be given in writing
and mailed, postage prepaid, by certified mail, addressed as
follows:
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To City:City Manager
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
To Simon:Executive Vice President
Development
115 West Washington Street
Indianapolis, IN 46204
8. This document represents the entire and
integrated agreement between the City and Stanford regarding
reimbursement of the Reimbursable Costs and supersedes all prior
negotiations, representation, or agreements, either written or
oral between the parties on this subject. This document may be
amended only by written instrument, signed by the City Manager
on behalf of the City and Executive Vice President - Development
on behalf of Simon. This Reimbursement Agreement shall be
governed by the laws of the State of California.
IN WITNESS WHEREOF, CITY and Simon have executed this
Reimbursement Agreement on the day and year written above.
CITY OF PALO ALTO SIMON PROPERTY GROUP
By:
City Manager
APPROVED AS TO FORM:
By:
Art Spellmeyer
Its: Executive Vice President
- Development
Senior Asst. City Attorney
APPROVED:
Director of Planning and
Community Environment
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EXHIBIT A
061212 syn 0130033
2006-07
Pl:anning
Dep artment
$1.00 to $1,000.00
$1,001.00 to $2,000.00
$2,000.01 to $25,000.00
$~25,000.01 to $50,000.00
$50,000.01 to $100,000.00
$100,000.01 to $500,000.00
$500,000.01 to $1,000,000.00
$1,000,000.01 and up
Building De~nolition Permit
Commercial Interior Non-Structural Demolition
Permit
$54.11
$54.11 for the first $1,000.00 plus $4.26
for each additional $100.00 or fraction
thereof, to and including $2,000.00
$96.71 for the first $2,000.00 plus $19.55
for each additional $1,000.00 or fraction
thereof, to and including $25,000.00
$546.36 for the first $25,000.00 plus
$14.09 for each additional $1,000.00 or
fraction thereof, to and including
$50,000.00
$748.76 for the first $50,000.00 plus
$8.14 for each additional $1,000.00 or
fraction thereof, to and including
$100,000.00
$1,387.’11 for the first $100,000.00 plus
$7.84 for each additional $1,000.00 or
fraction thereof, to and including
$500,000.00
$4,523.11 fo~ the first $500,000.00 plus
$6.65 for each additional $1,000.00 or
fraction thereof, to and including
$1,000,000.00
$7,848.11 for the first $1,000,000.00 plus
$5.11 for each additional $1,000 00 or
fraction thereof.
5250.00
$150.00
$54.11
$54.11 for the ~rst $1,000.00 plus $4.26
for each additional $100.00 or fraction
thereof, to and including $2,000.00
$96.71 for the first $2,000.00 plus $19’:55
for each additional $1,000.00 or fraction
thereof, to and including $25,000.00
$546.36 for the first $25,000.00 plus
$14.09 for each additional $1,000.00 or
fraction thereof, to and including
$50,000.00
$898.61 for the first $50,000.00 plus
$9.77 for each additional $1,000.00 or
fraction thereof, to and including
$100,000.00
$1,387.11 for the first $100,000.00 plus
$7.84 for each additional $1,000.00 or
fraction thereof, to and including
$500,000.00
$4,523.11 for the first $500,000.00 plus
$6.65 for each additional $1,000.00 or
fraction thereof, to and including
$1,000,000.00
$7,848.11 for the first $1,000,000.00 p!us
$5.11 for each additional $1~000.00 0r--
fraction there6fl
~f ~a!uation exceeds $3o, oo0,0oo.oo.
alternative deposit and fiaYmehi
arr~nge~hent~ may.be made at
d[~br~tion~f t~ Di?ebtor ~f Pla~ning~
and co~muni@ ~vi?bnment. 100" ~. :
percent of prdcessing costs Will
$250.00
$150.00
City of Palo Alto 2006-07 Municipal Fee Schedule 16-1
To site outside City
To site within City
Temporary Occupancy Inspection (Minor’project)
Temporary Occupancy Inspection (Major project)
$100.00 plus cash deposit or bond $100.00 plus cash deposit or bond
$500~00 plus cash deposit or bond $500.00 plus cash deposit or bond
;300.00/each $300.00/each
;720.00/each $720.00/each
Building Plan Check
Elective Plan Check
Fire and Life Safety Plan Check
~,oning Plan Check
Public Works Plan Check
Stron,q Motion Instrumentation Surcharqe
Commercial
Minimum
Residential
Documents
Optical Disk Cop~’ Fee
Electrical Permits
80% of building permit fee
25% of building plan check fee when
application utilizes an approved 3ra party
~lan check agency
45% of building permit fee
30% of building permit fee
12% of building permit fee
521.00 per $100,000.00
$0.50
$10.00 per $100,000.00
80% of building permit fee
25% of building plan check fee when
application utilizes an apprgved 3rd party
31an check agency
45% of building permit fee
30% of building permit fee
12% of building permit fee
$21.00 per $100,000.00
$0.50
$10.00 per $100,000.00
l$0.50/page [$0.50/page
Each applicant shall pay to the Building Official for each permit issued at the time of issuance, a fee in accordance with the following
’chedule and the rate provided for each classification shown therein.
$72.00/permit [$72.001permit
$0,09 per square foot
150.09 per square foot
I1$25.00
Base Fee
New or remodeled square footage (includes all
electrical work)
Air conditioners, each
Air cooled or oil cooled lighting and/or power
transformer
;25.00
.ach KVA shall be considered as one horsepower and charged for as per motor
zhedule.
City of Pale Alto 2006-07 Municipal Fee Schedule 16-2
E ectr Cai Permits (cbntinued);
Fixtures, switches, outlets
For each motor generator
For each motor of not more than 2 horsepowek .
For each motor of not more than 5 horsepower,
but more than 2 horsepower
For each motor of not more than 15 horsepower,
but not less than 5 horsepower
For each motor of not more than 25 horsepower,
but not less than 15 horsepower
For each motor of more than 50 horsepo~ver, but
not less than 25 horsepower
For each motor of more than 100 horsepower
For each range, electric clothes dryer, or water
heater
For each special circuit (circuits not listed herein)
Service Equipment
For each busway, power duct or floor duct per
foot
For each lighting, power and/o.r control
panelboard~ switchboard cabinet or panel
For each photovoltaic panel
For installation of each set of service entrance
conductors and/or service switch, including single
meter:
Not more than 200 ampere
Not more than 800 ampere
Over 800 ampere
Each additional meter
Temporary power pole, each
Temporary wiring for construction; Christmas
tree lots. etc.
;1.00 each
;3.00~KVA
$1.00
$10.00
$15.00
$20.00
$25.00
$30.00
$5.00
$5.00
$0.50
$5.00
$10.00
$15.00
$25.00
$35.00
$5.00
$25.00
$25.00
$1.00 each
$3.00/KVA
$1.oo
$10.00
$15.00
$20.00
;25.00
;30.00
$5.00
$5.00
$0.50
$5.OO
$10.00
$15.00
$25.00
$35.00
$5.00
;25.00
;25.00
CityofPalo Alto 2006-07 Municipal Fee Schedule 16-3
Additional plan review required by changes,
additions, or revisions to plans (1/2 hour
minimum)
Address changes ....
Drawing; Copy Fee
Inspections for which no fee is specifically
indicated (2 hour minimum)
Inspections outside of normal business hours (2-
hour minimum)
~eo-Tech Report Review (1 ;-hour minimum)
Microfilm Copy/Print
Microfilming (To Film)
Real Property Research Fee (1-hour minimum)
!Record Management Fee
Re-inspection Fee
Permit Automation Fee (applies to all
applications & permits)
Permit Reactivation (final inspection only) "
Mechanical Permits :
Base Fee
New or remodeled square footage (includes all
mechanical work)
Air conditioner or heat pump
Boiler (certified design)
Duct outlet (each)
Each evaporative cooler
Each exhaust hood (kitchen or industrial)
Each furnace and flue
Each vent fan (bath, dryer, residential kitchen)
Fire damper (each)
Flue (each)
Process piping system
Process piping system (hazardous)
Water heatin6 solar panel (each)
Swimming pool heater
$88,00/hour
$150.00 plus Other Application Fees on
page 17-6
$36:00/request
$78.00/hour
$126.00/hour
$158.00/hour
$3.00/sheet
$3.00/sheet
$56.00 per hour
$8&00/hour
$l 50,00 plus Other Application Fees on
page 17-7
$36.00/request
$78.00/hour
$126100/hour
$158.00/hour
$3.00/sheet
$3,00/sheet
$56.00 per hour
Please look under the Planning Department, Planning Division section.
$53.00 each
$2.00 per application or permit
$300,00 or reactivation fee per PAMC
SectiOn 16104.100 (whichever is less)
$72.00/permit
$0.09 per square foot
$25.00
$25.00
$0.50
$25.00
$25.00
$25.OO
$10.00
$5.00
$5.00
$25.00
$50.00
$10.00
$25.00
$53.00 each
$2.00 per application or permit
$300.00 or reactivation fee per PAMC
Section 16.04.100 (whichever is less)
$72.00/permit
$0.09 per square foot
;25.0O
;25.00
;0.50
;25.00
;25.00
;25.00
;10.00
;5.00
;5.00
;25.00
;50.00
;10.00
;25.00
City of Paio Alto 2006-07 Municipal Fee Schedule 16-4.
Base Fee
Newor remodeled square footage (includes all
~lumbing work)
Commercial/industrial sewer
Fixtures (each)
Gas outlet
Industrial waste system
Radiant heat piping system
Rain water system (per drain)
Residential sewer
Storm drain system
Swimming pool
Water heater
Water piping system, or repatr to a water piping
system
Re-roofing Permit
Use and Occupancy Permits
Certificate of" Occupancy or Certificate of Use
$72,00/permit
$0.09 per square foot
;25.00
;3.00
;5.00
$25.00
;25.00
;5.00
;10,00
;25.00
;25.00
$5.00
$5.00
$72.00/permit.
$0.09 per square foot
$25.00
$3,00
$5.00
$25.00
$25.00
$5.00
$I0.00
$25.00
$25.00
$5.00
$5.00
Saine as fees charged under Planning Department, h~spection Services Division,
Building Inspection fees, Building Code valuations.
City of Palo Alto 2006-07 Municipal Fee Schedule 16-5
Design Enhancement Exception
Major Project
Minor Proj6ct requiringArChii~cturalReview
:
M~nor Pro ect .................re utrmg
Preliminaq Review
Signs (exceptions)
$1,164.00 plus Other Application Fees on
page 17-5
Initial deposit of $2,000.00 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered plus Environmental Impact
Assessment and any other entitlements
necessary to complete the project,
whether indicated as 100 percent cost
recovery in this schedule or not.
$529.00 plus Other Application Fees on
page 17-5
$252.00 plus Other Application Fees on
page 17-5
$158.00/minor - $977.00/major plus
Other Application Fees on page 17-5
$1,046.00 plus Other Application Fees on
page 17-5
$1,164.00 plus Other Application Fees on
9age 17-7
$529.00 plus Other Application Fees on
page 17-7
$252.00 plus Other Application Fees on
page 17-7
15977.00 plus Other Application Fees on:
pag~ i7~7
$1,046.00 plus Other Application Fees on
page 17-7
: SignSl (new~ rep!aceme~t) requiring $529.00 plus Other Application Fees on
page 17-5
Signs Erected Without Approval $1,046.00 plus Other Application Fees
page 17-5Signs ~requiring s!aff~ review:’ $252.00 plus Other Application Fees on
on!y ~:’: ~ page 17-5
Temporary Sign permit $48.00/15 days plus Other Application
Fees on page 17-5
Historic Resource.:: . ::i :,:: i:i~ ~:: :~:: :i:i .~::.i:~. i :~i :: i’i::~: :~
$2,520.00 plus Environmental Impact
Assessment plus Other Application Fees
on page 17-5
$529.00 plus Other Application Fees on
page 17-5
$529.00 plus Other Application Fees on
page 17-7
$1,046.00 plus Other Application Fees on
page 17-7
$252.00 plus Other Application Fees on
page 17-7
$48.00/15 days plus Other Application
Fees on page 17-7
Majoi" Project
Minor Project requiring Historic Resources
$2,520.00 plus En~,ifonmemal Impact:
$529.00 plus Other Application Fees on
~age 17-7
City of Palo Alto 2006-07 Municipal Fee Schedule 17-1
$252.00 plus Other Application Fe’es o’~ ’
page 17-5
Demolition Application for Historic Buildings $1,920.00 plus Other Application Fees on
,page 17-5
Transfer of Developmen( Rights Projects Initial deposit of $500 plus Other
Mills Act Contract - Establish or Withdraw
Williamson Act Contract - Establish or
Withdraw
Application Fees on page 17-5. 100
percent of processing costs will be
recovered, plus Environmental Impact
Assessment and any other entitlements
necessary to complete the project,
whether indicated as 100 percent cost
recovery in this schedule or not.
Initial deposit of $1,500.00, plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered.
Initial deposit of $1,575.00 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered, including any charges for
specialized consultants.
Comprehensive Plan Change¯ "
Comprehensive Plan Change (outside of
Annual Review)
Initial deposit of $5,000.00 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered plus Environmental Impact
Assessment and any other entitlements
necessary to complete the project,
whether indicated as 100 percent cost
recovery in this schedule or not,
Development Agreement
Development Agreement
Development Agreement - Annual Review
City of Palo Alto
$252.00 plus Other Application Fees on
9age 17-7
$1,920.00 plus Other Application Fees on
page 17-7
Initial deposit of $500 plus Other
N~pli~aiion Fees andLegal Fees on
pag~si7-6 and 17-7. 100 percent of
processing costs will be recovered, plus
gnvir0nmental Impact Assessment and
anylotl;ie{entitiements necessary to
complete the project, whether indicated as
100percent cost recovery in this schedule
0rnOt. :
Initia! ~deposit of $1,500.00, plus Other
Application Fees and Legal Fees on
pages !7-6 and 17-7. 1 O0 percent of
processing costs will be recovered.
Initial deposit of $1,575.00 plus Other
Application Fees andLegal Fees on
pages 17-6 and 17-7. 100 percent of
processing costs will be recovered,
including any charges for specialized
consultants.
!nitial.deposit of $5,000.00 plus Other
Application Fees andLegal Fees on
9ages 17-6 and 17-7, 100 percent of
processing costs will be recovered plus
Environmental Impact Assessment and
any other entitlements necessary to
complete the project, whether indi~.ated as
100 percent cost recovery in this schedule
Initial Deposit of $5,800.00 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered plus Environmental Impact
Assessment plus any other entitlements
necessary to complete the project,
whether indicated as 100 percent cost
recovery in this schedule or not.
Initial deposit of $2,000 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered.
Initial Deposit of $5,800.00 plus Other-
Ai~plic’ation Fees and Legal Fees on
P£~S i.7~6 and i777. i00 Percent of
processing costs will be recovered plus
Environmental Impact Assessment plus
anY other entitlements necessary to
~omplete the project, whether indicated as
100 percent cost recovery in this schedule
or not.
Initial deposit of $2,000 plus Other
¯ ;’i"::’: :E._~piication Fees and Legal Fees on
pages 17-6 and 17-7. 100 percent of
processing costs will be recovered.
2006-07 Municipal Fee Schedule 17-2
Parks
Community Centers
Libraries
Residential: Single family~
$8,670/residence (or $12,946/residence
larger than 3,000 square feet); Multi-
family $5,675/unit (or $2,869/unit smaller
than or equal to 900 square feet).
Nonresidential: Commercial/Industrial,
$3,682.00 per 1,000 square feet;
Hotel/Motel, $1,664.00 per 1,000 square
feet
Residential: Single family~
$2,248/residence (or $3,364/residence
larger than 3,000 square feet); Multi-
family $1,479/unit (or $746/unit smaller
than or equal to 900 square feet)
Nonresidential: Commercial/Industrial,
$208.00 per 1,000 square feet;
Hotel/Motel, $94.00 per 1,000 square feet
Residential: Single family~
$784/residence residence (or -
$1,166/residence larger than 3,000 square
feet); Multi-family $513/unit (or
$257/unit smaller than or equal to 900
square feet)
Nonresidential: Commercial/Industrial,
$198.00 per 1,000 square feet;
Hotel/Motel, $83.00 per 1,000 square feet
Regidenfiali single famiiy’:’ ~: ’:..
~2;:30~2)relid~ce (o~; S3i~B~/re~ide~le6
targei~th)in 3,000 ?~qt~e fee0i l~luiti-
[’amiiy $!;~i ~)uni~ (61 $764/~nit Smaller
:ban 0~ eqeal t0 900 square feet) " ¯
Nonresidential: Commercial/Industrial;
$213,00 per 1,000 square feet or fraction
tfibreef; Hbtel~tel; $96~00 p~r 1,000
square feet or fra~ti0n thereof . ’
Residential: Single: family,.-:...
$803/r~sidenc~~es~dence (or
$1;194/residende larger th~n 3,000 square
feet); Multi-family $525iunit (0r . ’
$263/unltSmallerthanor equal to 900
square feet)_: :~ ~_~?_~
Nonresidential: Commercial/Industrial,
$203,00 per 1,0OO square feet or fraction
tgereof; Hotel/Motel, $85.00 per 1,000
square feet or fraction thereof
Development Projects Preliminary.Review
Development Projects Preliminary Review Initial deposit of $3,000.00 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered plus Environmental Impact
Assessment plus any other entitlements
necessary to complete the project,
whether indicated as 100 percent cost
recovery in this schedule or not.
InitiaI deposit of $3,000~00 plus Other..
Appli;~atiO~ Fe~ hhd~@al Febs~ on :?/i
js~ges 17;6 ~ind/17:~711100 ~O:cent 6f ~.
proc~gsi~g Eel,s Mllb~recovered plus
En+irofimental Impact AsSessment plus
any other entitlements necessau to
Complete the project, whether indicated as
100 percent cost recove~ in this schedule
or not."- "
City of Palo Alto 2006-07 Municipal Fee Schedule 17-3
;4.00 if mailed
I
$11.00 + $4.00 if mailed
$44.00 + $4.00 if mailed
$0.50/pa~e
$58.30/hour, 1-hour minimum
Board or Commission Agendas *
l$30.00/annual per Board or Commission [$30.00/annual per Boardor Commission
Boar’d or Commission Minutes *
l$50.00/annual per Board or Commission [$50.00/annual per Board or Commission
Environmental Impact Assessment (EIA) -, ..............:..,"". ..~ :",: ~i--:~5:.:.. :
Mitigated Negative Declaration Initial deposit of 100 percent of estimated
costs due upon application plus Other
Application Fees on page 17-5. If
estimated costs exceed $100,000
alternative deposit and payment schedule
arrangements may be made at the
discretion of the Director of Planning and
Community Environment. 100 percent of
)rocessing costs will be recovered.
Initial deposit of 100 percent of estimated
costs due upon application plus Other
Application Fees on page 17-7. If
estimated costs exceed $100,000
alternative deposit and payment schedule
arrangements may be made at the
discretion of the Director of Planning and
Community Environment. 100 percent of
)rocessing costs will be recovered.
Environmental Impact Assessment (EIA)$996.00 plus Other Application Fees on
page 17-7
Environmental Impact Report (E1R)Ir ~
$996.00 plus Other Application Fees on
~age 17-5
Initial deposit of 100 percent of estimated
costs due upon application plus Other
Application Fees on page 17-5. If
estimated costs exceed $100,000
alternative deposit and payment schedule
~rrangements may be made at the
discretion of the Director of Planning and
Community Environment. 100 percent of
9rocessing costs will be recovered.
City of Palo Alto 2006-07 Mugicipal Fee Schedule 17-4
Mitigation Monitoring - Environmental Impact
Report
Mitigation Monitoring - Mitigated Negative
Declaration
Initial deposit of $3,000 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered, including any charges for
specialized consultants.
Initial deposit of $1,000 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered, including any charges for
specialized consultants.
Initial deposit 0f $3,000 plus other
Application Fees on page 17-7. 100
percent of processing costs will be
recovered, including any charges for
specialized consultants.
Initial deposit of $1,000 plus Other
Application Fees on page 17-7. i 00
percent of processing costs will be
recovered, including any charges for
specialized consultants.
Home Improvement Exception
Protected Tree Removal
Neighborhood Preservation Zone Exceptions
$582.00 plus Other Application Fees on
page 17-5.
$190.00 plus Other Application Fees on
,page 17-5.
$1,576.00 plus Other Application Fees on
page 17-5 plus Environmental Impact
Assessment.
$582.00 plus Other Application Fees on
page 17-7.
$190.00 plus Other Application Fees on
page 17-7.,
$1,576.00 plus Other Application Fees on
page 17-7 plus Environmental Impact
Assessment.
New 2nd story addition or new 2-story home $2,960.00 plus Other Application Fees on $2,960.00 plus Other Application Fees on
page 17-5 and any other entitlements page 17-7 and any other entitlements
necessary to complete the project,necessary to complete the project.
Expansion of existing 2nd story greater than
150 square feet
$2,050.00 plus Other Application Fees on
page 17-5 and any other entitlements
necessary to complete the project.
$2,050.00 plus Other Application Fees on
page 17-7 and any other entitlements
necessary to complete the project. ¯
Exception 1$4,315.00 plus Other Application Fees on [andLegai~Fees On pages 17-6&17-.)page 17-5 $4,315.00 plus Other Application Fees
Review 1$428.00 plus Other Application Fees on [$428.00 plus Other Application Fees on
[page 17-5 [page 17-7
City of Palo Alto 2006-07 Municipal Fee Schedule 17-5
Legal Review Fee : Mills Act Contract-. /
: Estabii~h 0~: Wiih~a~V: : ::[3 ~. ,f ,~i~ 3-~-.
-Legal Review Fee : Williamson Act Contract=
Establish or WitfidraW: ¯ : ~ ¯ ¯ i ’. : ~.
Legal Review Fee = Comprehensive Plan .
Change " " : ~" <: -~
Legal Review Fee - Development Agreement
Legal Review Fee : Development Agreement -
Annual Review ~
Legal Review Fee - Development Project
Prelimin~r~ Review ’ . ’
Legal Review Fee - Environmental Impact.
Report - ’~ " " ~
Legal Review Fee ÷ Nonconforming Use . ~
Exception " " " ~ . i
Legal Review Fee - Site and Design Fee
Legal Review Fee : Minor Subdivision -
Preliminary Parcel Map " : .’
Legal Review Fee - Minor Subdivision -
Preliminary Parcel Map, with Exception .
Legal Review Fee - Major Subdivision-
Tentative Map
Legal Review Fee - Variance, Commercial &
Manufacturing
Legal Review Fee = Zone Change = RegUlar
Legal Review Fee - Planned Community Zone
Change . (: : ; ~? : ~ ~ ;~-.i (’~ i :i:i:.:!~
Lega! Review. Fee~. Minor, Change. t9 PlannedCommunity Z6ne-, :~- :i...:L ~:".)i://. :
Legal Review Fee~ Complex Projects over
50,000 Squai-e fdet" : --
Initial Deposit of $5,000.00. 100 percent
Of ie~algerVices and Cdsts incurred will
be recm, ered..i ~ ~ ;: ~.,33: 5: i~ ~ ~ -
$750.00 " .’
$2,000 O0 - ?
$1,000.00 : ~ ~
$2,000 O0
$750.00.
Initial Deposit of $1,500.00. : 100 percent
0fiegai:SerViC~S ~iad 6oSts incUrred" .
relatifig i0 C6rnplex matters requiring
specialized legal services ordocuments
will be recO:vered2"
City ofPaloAlto 2006-07 Municipal Fee Schedule 17-6
Public Notice
Record Management Fee (Optical disk record)
Microfilming (to film)
Permit Automation Fee
Recording Fee
$60.00; if noticing is required
$0 ifnoticinl~ is not required
$23.00 per file
$3:00/sheet
$2.00 per application or permit
County cost of Recording, if required
($19.00 per page as of 2003)
$60.00; if noticing is required
$0 if noticin~ is not required
$23.00 per file
$3.00/sheet
$2.00 per application or permit
Major Initial deposit of $5,000,00 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered plus Environmental Impact an~
any other entitlements necessary to
complete the project, whether indicated as
100 percent cost recovery in this schedule
or not.
Minor Change $926.00 plus Other Application Fees on
page 17-5
Initial deposit of $5,000.00 plus Other
Application Fees andEegal Fees on
page~ 17-6 and i7-7. i00 percent of
processing costs will be recovered plus
Environmental Impact and any other
entitlements necessary to complete the
project, whether indicated as 100 percent
cost recovery in this schedule or not.
$926.00 plus Other Application Fees on
page 17-7
CiO~ of Palo Alto 2006-07 Municipal Fee Schedule 17-7
Preliminary Parcel Map
Parcel Map
$2,104.00 plus Other Application Fees on
page 17-5 plus Environmental Impact
Assessment. ’
$860.00 plus Other Application Fees on
page 17-5.
$2 104.00 plus Other Application Fees
hh 1Legal:Fees on p~ges i726 & 17-7
plt.s Environmental Impact AsSessment.
$860.00 plus Other Application Fees on
page 17-7.
Parcel Map
$4,158.00 plus Other Application Fees on $4,158.00 plus Other Application Fees
page 17-5 plus Environmental Impact and Legat FeeS On pages i7-6:& 17-7
Assessment.plU~ Environmental impactAssessment.
$1,008.00 plus Other Application Fees on $1,008.0.0 plus Other Application Fees On
page 17-5. page 17-7.
Subdivision (five or more parcels):,i. ¯ ¯. . .: ::: :. ’ .
All subdivision proposalsrequire Environmental lmpact Assessment applications" ’ "
Tentative Map $6,829.00 plus Other Application Fees on $6,829.00 plus Other Application Fees
page 17-5 plus Environmental lmpact and Legal Fees on pages 17-6& 17-7
Assessment plus Environmental Impact Assessment
Final Maps ’ $2,716.00 plus Other Application Fees on $2,716.00 plus Oiher Application Fees on
page 17-5 page 17-7
Use Permit. ¯ .i f~.~{: ~...i:.i -.~... i....~...~ i iii~(, i. i.:
Regular $3,150.00 plus Other Application Fees on $3,150.00 plus Other Application Fees on
page 17-5 plus Environmental Impact page 17-7 plus Environmental impact
Assessment Assessment . ¯. " ¯
Minor Change to Existing $800.00 plus Other Application Fees on $800.00 plus Other Application Fees on
page 17-5 page 17-7
Day Care Center $151.00 plus Other Application Fees on $151.00 plus Other Application Fees on
page 17-5 plus Environmental Impact page 17-7 plus Environmental lmpact
Assessment Assessment
Temporary Use Permit
Minor
Variance
Commercial and Manufacturing
Fence
Residential
1-,~, ~ , ~ :.~,.~ " .
$158.00 plus Other Application Fees on
9age 17-5
$3,150.00 plus Other Application Fees on
page 17-5 plus Environmental lmpact
Assessment
$832.00 plus Other Application Fees on
page 17-5
$1,654.00 plus Other Application Fees’ on
page 17-5
$158.00 plus Other Application Fees on
page 17-7
$3,150.00 plus Other Application Fees
and Legal Fees 6n p~ges !7:6 & 1%7
plus EnVironmental irnpgct A~s~Ssrnent.
$832.00 plus Other Application Fees on
page 17-7
$1,654.00 plus Oiher Application Fees on
page 17-7
City of Palo Alto 2006-07 Municipal Fee Schedule 17-8
Preliminary Parcel Map $2,104.00 plus Other Application Fees on $2;104 00’plug Oth~ AppliEation iFees
page 17-5 plus Environmental Impact
Assessment. "~lfi§iEn~ii0h~ntal i~p~t A~geS:sment,::
Parcel Map $860.00 plus Other Application Fees on $860.00 plus Other Application Fees on
page 17-5.~age 17-7.
Preliminary Parcel Map $4,158.00 plus Other Application Fees on $4~158;00 plUS other Appli~ati0n =Fees
Assessment.
Parcel Map $1,008.00 plus Other Application Fees on $1,008.00 plus Other Application Fees 0n
page 17-5. page 17-7.
Tentative Map $6,829.00 plus Other Application Fees on $6,829.00 plus Other Application Fees
Assessment
Final Maps $2,716.00 plus Other Application Fees on $2,716.00 plus Other Application Fees on
page 17-5 page 17-7
Regular $3,150.00 plus Other Application Fees on $3;150~00 plU~ Ot~e~ AppliCation Fees on nvi onm nta
Minor Change to Existing $800.00 plus Other Application Fees on $800.00 plus Other Application Fees on
page 17-5 page 17-7
Day Care Center I$151.00 plus Other Application Fees on $151.00 plus Other Application Foes on
~age 17-5 plus Environmental lmpact page 17-7 plus Environmental Impact
Assessment Assessment
Minor
Variance
Commercial and Manufacturing
$158.00 plus Other Application Feds on $158.00 plus Other Application Fees on
?age 17-5 page 17-7
$3,150.00 plus Other Application Fees on
page 17-5 plus Environmental Impact
Assessment
Fence $832.00 plus Other Application Fees on
page 17-5
Residential $1,654.00 plus Other Application Fees on
page 17-5
$3,150.00 pluS Other Application Fees
51US~ E~+ii~0ii~htal lnip~t A~essment
$832.00 plus Other Application Fees on
page 17-7
$1,654.00 plus Other Application Fees on
page 17-7
City of Palo Alto 2006-07 Municipal Fee Schedule 17-8
Regular
Planned Community Zone Change
Minor Change to Planned Community Zone
Initial deposit of $5,000.00 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered plus Environmental Impact
Assessment and any other entitlements
necessary to complete the project,
whether indicated as 100 percent cost
recovery in this schedule or not.
Initial deposit of $6,000.00 plus Other
Application Fees on page 17-5. 100
percent of processing costs will be
recovered plus Environmental Impact and
any other entitlements necessary to
complete the project, whether indicated as
1 oo percent cost recovery in this schedule
or not.
$926.00 plus Other Application Fees on
page 17-5
1 O0 percent
City of Palo Alto 2006-07 Municipal Fee Schedule 17-9
Attachment C
City of Palo Alto
City Manager’s Report
INFORMATION CMR
TO:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER
DECEMBER 11, 2006
DEPARTMENT: PLANNING
AND COMMUNITY ENVIRONMENT
CMR: 441:06
PRESENTATION OF PROPOSED EXPANSION PROJECT FOR
STANFORD SHOPPING CENTER
This is an informational report and no Council action is required.
BACKGROUND
The Simon Property Group is proposing to expand Stanford Shopping Center and has
requested a City Council study session to present the concepts for the proposed shopping
center expansion. Simon proposes to add approximately 240,000 square feet of retail
expansion distributed throughout the site. Simon also proposes a 120 room hotel focused
primarily on serving Stanford University, the Stanford Medical Center, and the Stanford
Shopping Center. The hotel will also feature conference and meeting room facilities.
In 2005, the Mayor’s Retail Attraction Committee (RAC) identified several ways to
attract and retain local businesses. One element of the Action Plan presented to City
Council and the Planning and Transportation Commission included enhancing Stanford
Shopping Center and assisting the Center become more competitive, particularly relative
to other regional shopping centers. The RAC and City Council gen.erally indicated
support for helping maximize the Shopping Center’s potential for expansion and revenue
enhancement to the City. The City Council has also identified the Shopping Center
expansion as a key potential source of revenue as part of the City’s efforts to add
$3 million of annual revenue for infrastructure improvements.
Stanford Shopping Center Background
The following background information about the shopping center is being provided for
the Council to facilitate its consideration of the Simon Property Group’s presentation.
The Stanford Shopping Center (SSC) comprises the area located between Sand Hill
Road, E1 Camino Real, Quarry Road and Vineyard Lane. The site includes a total of 70
acres, with 54 acres in the main shopping center area and an additional 15.88 acres in the
CMR:441:06 Page I of 6
area between Arboretum Road and Vineyard Lane. The area is zoned Community
Commercial (CC). An aerial view of the Shopping Center area is attached.
The shopping center was constructed in 1956 and has undergone several expansions and
upgrades since then. The most recent expansion was the 1997 approval of 80,000 square
feet of new space, a 49,000 square-foot increase in the development cap at the SSC
beyond the development existing on June 14, 1996, resulting in a total current
development of 1,412,162 squ are feet.
The 1997 .expansion project was one of four development projects approved together as
the Sand Hill Corridor projects. In addition to the SSC expansion, these projects included
the Stanford West Apartments, the Hyatt Senior Housing, and several roadway
modifications including: the widening of Sand Hill road to four lanes from Santa Cruz
Avenue to Arboretum. Road; a two-lane extension of Sand Hill Road from Arboretum
Road to E1 Camino Real, widening and improvement of Quarry Road, construction of a
new Vineyard Lane, extension of Palo Road, and the extension of Stockfarm Road.
These projects were considered together in one Environmental Impact Report (EIR), and
were addressed in a single Development Agreement.. While the EIR identified significant
unavoidable impacts from the projects, including the SSC expansion (including
incremental increases in traffic), the City Council adopted overriding considerations for
the projects because the impacts were considered to be limited, and the projects would
make the Sand Hill Road Extension and related roadway improvements economically
feasible. The total approved expansion for the SSC increased the SSC’s existing floor
area by about six percent. Information provided by independent experts showed that the
exPansion was needed to assist the SSC in remaining a competitive and viable regional
shopping area by allowing continued growth and flexibility to maintain parity with other
competitive shopping centers.
Key issues in the 1997 SSC expansion project
Following is a summary of key planning, transportation, and economic issues that were
addressed in the City review and approval of the 1997 SSC expansion project.
Connection of Stanford Shopping Center to Downtown and Transit Station.
An important City objective in the design of the 1997 SSC expansion was to strengthen
the connection between the shopping center, Downtown, and the Caltrain station. The
design was modified to loca~e a retail building at the coruer of E1 Camino Real and
Quarry Road, providing a bridge between the SSC and Downtown by shifting the "center
of gravity" of the SSC nearer the transit station and Downtown. The pedestrian link
between the SSC, Downtown and the transit station was strengthened by improving the
crossing of E1 Camino Real at Quarry Road and extending the pedestrian path into the
shopping center.
Protection of San Francisquito Creek riparian area.
San Francisquito Creek and creekside riparian area is adjacent to the north side of the
SSC. This natural resource was protected by locating the newly created Sand Hill Road
extension away from the creek on the existing paved area of the shopping center parking
lot. To provide permanent protection for the creekside open space, the area between the
CMR:441:06 Page 2 of 6
north edge of the Sand Hill Road extension and San Francisquito Creek was rezoned to
CC (L), adding a Landscape (L) overlay to this area.
Fiscal and economic impacts:
An analysis was prepared to study the fiscal impacts of the four Sand Hill Corridor
projects on the City of Palo Alto and the Palo Alto Unified School District (PAUSD), and
possible economic impacts on retail sales in downtown Palo Alto and downtown Menlo
Park. The stti’dy found that development of the four projects would provide new annual
revenues in excess of costs for necessary services for the City and for the PAUSD.
Additional significant positive fiscal impact for the City resulted from the amendment. In
addition, the City achieved the extension of the E1 Camino Park lease that was part of the
development agreement. The economic analysis also found that projected increases in
local population, income, and employment would provide sufficient resident-, and
employee-generated demand to support both the shopping center expansion, downtown
.Palo Alto and downtown Menlo Park retailers.
Multimodal transportation improvements.
A major objective of the City was that the project would not only improve vehicular
circulation but also would encourage non-vehicular access to the SSC by improving
conditions for pedestrians, bicyclists and transit users. In addition to many mitigation
measures imposed to .offset expected traffic increases resulting from the Sand Hill
Corridor projects, accommodating pedestrians and bicyclists was incorporated into the
design of all the projects. Due to the major scale of pedestrian andbicycle improvements
throughout the projects, a condition of project approval Was that a post-construction
evaluation of the bicycle and pedestrian improvements would be conducted to monitor
the success of the circulation system design for non-automobile modes of travel. This
evaluation is to be conducted two or three years after completion of all the transportation
features of the project; Stanford expects to conduct this study next year.
Scenic quality of northern gateway and Sand Hill Road corridor.
The SSC is located at the north gateway to the city where E1 Camino Real crosses San
Francisquito Creek and where Sand Hill Road intersects E1 Camino. Sand Hill Road
provides a linkage between E1 Camino Real, a state, historic route, and Interstate 280, a
California scenic highway. At the time the Sand Hill Corridor projects were approved,
the Comprehensive Plan was amended to add Sand Hill Road to the city’s scenic
corridors. Possible impacts on the scenic quality of the north gateway and Sand Hill
Road was an important consideration for the City in the design of the SSC expansion.
During the review process, proposed new development was shifted away from the north
side of the shopping center to locations along Quarry and Arboretum Roads, to protect
vistas from Sand Hill Road. The roadway was specially designed to retain a rural
character, and the new extension from Arboretum to E1 Camino Real was reduced to two
Ianes.
Stanford Shopping Center purchased by Simon.
In 2003, OPG Center, LLC, an affiliate of Simon Property Group, a publicly traded real
estate investment trust ("SIMON"), acquired the Stanford Shopping Center from Stanford
University, subject to a long-term ground lease. The development agreement and the
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maintenance agreement (the Stanford Agreements) between the City and Stanford contain
provisions that apply to the SSC as well as other properties owned by Stanford. At the
time Simon purchased the SSC, the City agreed to an Assignment and Assumption
Agreement that severed the SSC-related obligations under the Stanford Agreements so
that those obligations were assigned to and assumed by Simon. This did not release
Stanford from any of its obligations and liabilities under the Stanford Agreeme~, for
which it remains liable to the City. In the event of a breach of any of the SSC-related
obligations assumed by Simon, the City may exercise its rights and remedies against
Stanford or against Simon.
Development Agreement Annual Report.
The terms of the Development Agreement for the Sand Hill Corridor projects require that
Stanford submit an annual report to the City demonstrating good faith compliance with
the terms of the agreement. Nearly all of the components of the projects have been
completed and most of the conditions and mitigations have been satisfied.
POLICY IMPLICATIONS
Following are Comprehensive Plan policies and programs relevant to the Stanford
Shopping Center proposal.
Policy B-22: Work with Stanford University to ensure that the Stanford Shopping Center
is sustained as a distinctive, competitive, high quality regional shopping center.
Policy B-22, Text: While the Center has had many positive economic benefits, it is
.primarily auto-oriented and is not as well integrated into the fabric of the community as it
might be. The Shopping Center’s parking lot redevelopment and building expansion
plans approved in 1997 incorporate improved pedestrian and transit connections to
University Avenue/Downtown, the University Avenue multi,modal Transit Station, and
nearby housing.
Policy L-26: Maintain Stanford Shopping Center as one of the Bay Area’s premiere
regional shopping centers. Encourage any new development at the Center to occur
through infill, including development on existing surface parking lots.
Program L-23: Identify strategies to reuse surface parking lots and improve pedestrian
and transit connections at Stanford Shopping Center.
Program L-24: Maintain a Stanford Shopping Center development cap of 80,000 square
feet of additional development beyond that existing on June 14, 1996.
Policy L-27: Pursue redevelopment of the University Avenue Multi-modal Transit
Station area to establish a link between University Avenue/Downtown and the Stanford
Shopping Center.
The Mayor’s Retail Attraction Committee (RAC) in 2005 identified as a key issue the
need to actively attract and retain local businesses that add to the City’s revenues and
business mix. The RAC Action Plan was reviewed by the City Council at a joint study
CMR:441:06 Page 4 of 6
session with the Planning and Transportation Commission on December 12, 2005 and
calls for exploring ways to enhafice the SSC and help it become more competitive.
NEXT STEPS
The presentation and Council discussion on December 11 will be similar to the study
session held on November 20 for the Stanford Medical Center. It will provide an
opportunity for the Council to provide initial comments on the SSC schematic plans and
raiseissues regarding the proposal. On December 18, the Council is scheduled to discuss
authorizing the City Manager and City Attorney to initiate the process for project review
and negotiation of an amendment to the development agreement between the City, the
Simon Group and Stanford regarding the future expansion of the SSC. At that time, staff
will summarize for Council the issues raised at both study sessions that will form the
basis for the future process and discussions. The development agreement will allow the
City to negotiate with the Simon Group and Stanford, and will require conditions to
adequately mitigate potential impacts of the project and to provide for appropriate public
benefits. Any proposal will likely require a Comprehensive Plan and zoning code
amendment.
An EIR will be required to address impacts from the project and is likely to include the
Stanford Medical Center project as part of a joint EIR. A Request for Qualifications
(RFQ) for an EIR consultant will be circulated in January with consultant selection in
February. The EIR is anticipated to take up to a year to prepare. Staff will provide
Council with progress reports over the course of the EIR preparation.
All costs of project review, including the EIR preparation, legal fees, contract planner
services and City staff time will be reimbursed by the Simon Group through a
reimbursement agreement. The City also expects to retain independent experts regarding
the economic and design aspects of. shopping center and hotel facilities. Costs associated
with these experts will also be reimbursed by the Simon. Group.
Although the Simon Group plans extensive public outreach regarding the project, the
City will also hold public workshops and develop a project website in addition to
conducting, public hearings on the EIR, the development agreement and any other
required entitlements:
RESOURCE IMPACTS
The Stanford Shopping Center generates a significant portion of the City’s General Fund
Sales Tax Revenues. As staff has indicated in our Long Range Financial Forecast for this
year and in prior years, the Shopping Center is facing increasing competition from other
regional commercial retail centers. If this trend continues, the City could face the
potential of declining sales tax revenues in the future.
The proposed expansion of 240,000 square .feet should address the competition issues by
insuring a balanced, attractive retail mix. Currently, retail space at the shopping center
generates approximately $800 dollars per square foot. This expansion can generate
significant additional sales tax revenues. Initially, new retail space is projected to
generate about $650 per square foot in sales; this would yield approximately $156 million
CMR:441:06 Page 5 of 6
in gross sales, or approximately $1.5 million per year in new sales tax revenues. As retail
space matures, the increased floor area is anticipated to generate closer to the $800 per
square foot level, which would equal approximately $192 million in gross sales, or $1.9
million per year in sales tax revenues.
Also included in the proposed development project is a 120 room hotel. Based on current
Transient Occupancy Tax (TOT) reports, the average room rate li’i"Palo Alto is
approximately $131 per night with occupancy rates at about 70%. Using the same
occupancy rate and room rates for a hotel of this type, annual TOT could increase by as
much as $800,000.
As with any significant development project, there will also be incremental property tax
revenues generated by the increased construction value as well as Utility User Tax (UUT)
revenues once the space is occupied. Property Tax estimates will be determined once
construction documents have been received by the City; UUT revenues are roughly
estimated at $21,000 annually.
Finally, in addition to the revenues listed above, there are also one-time fees that will be
paid by the developer. These include building permit fees, roughly estimated at
$760,000, and parks, libraries, community centers, and housing impact fees totaling
$6.6 million. In addition, a citywide traffic impact fee ordinance, scheduled to return to
the City Council in early 2007, would generate a $2.2 million fee for transportation
projects.
ENVIRONMENTAL REVIEW
This report is an information item and is not subject to the California Environmental
Quality Act (CEQA).
ATTACHMENT
Attachment A: Aerial map of Stanford Shopping Center
PREPARED BY:
DEPARTMENT HEAD:
VIRGINIA WARHEIT
)
CITY MANAGER APPROVAL:
Director of Planning and Community
Environment
City Manager
CMR:441:06 Page 6 of 6
Attachment A
The City of
Palo Alto
Stanford Shopping Center
This map is a product of the
City of Palo Alto GIS