HomeMy WebLinkAboutStaff Report 359-10TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: September 27, 2010
REPORT TYPE: INFORMATION REPORT
DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
CMR: 359-10
. SUBJECT: 2009-2010 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 2009-2010.
BACKGROUND
In May of 2005, the City Council entered into an agreement with Stanford University which
grants rights to Stanford for certain specified development subj ect to the limitations and
conditions in the agreement. The general terms under the agreement are as follows:
• Stanford will lease the Mayfield Site at the comer of Page Mill Road and El Camino Real
to the City for fifty-one years for use by the City as a public soccer complex.
• The City, in turn, grants to Stanford the right to demolish and relocate 300,000 square
feet of existing office development located at 2450, 2470 and 2500 El 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:359:10
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• 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.
In 2006, 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 Avenue,
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 A venue sites. The Development Agreement requires an application for at least some
of the housing to be submitted to the City by 2013.
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
No additional square footage was built or approved in the Research Park during this reporting
period. The July 6, 2010 memo from Stanford Management Company (Attachment A) describes
Stanford's 2009-10 activities related to implementation of the Development Agreement. In July
of 2009, the City approved and entitled a project at 3251 Hanover to replace an existing 55,735
square foot structure and construct approximately 85,000 square feet of office/lab for Lockheed
Martin. At present, Lockheed did. not apply and does not have building permits for the approved
project and is currently in the process of revising or proposing a completely new project. The
major revision or new proposal will need to go through a new approval process from the City of
Palo Alto and Stanford.
In 2009, Facebook occupied some of the vacant office space on the properties ()n California
Avenue that will eventually be used for housing under the Development Agreement 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 2009/2010.
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RESOURCE IMPACT
There are no resource impacts stemming from the review of the development agreement
compliance program that affects the general fund.
POLICY IMPLICATIONS
This report does not represent any changes to existing City policies.
ENVIRONMENTAL REVIEW
This is an informational report and is not a project under the California Environmental Quality
Act. No environmental assessment is required.
PREPARED BY: ;aroSJQJb-
ROLAND A. RIVERA
Senior Planner
DEPARTMENT HEAD REVIEW: ~~ttn~ ~
6CfL, CURTIS ILLIAMS
CITY MANAGER APPROVAL:
ATTACHMENTS
Director of Planning and Community
Environment
A. July 6, 2010 Memo from Jean Snider -Stanford Management Company
B. Table of Status of Development under Mayfield Development Agreement
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I
Mr. Steve Emslie
Deputy City Manager
City of Palo Alto
250 Hamilton A venue
Palo Alto, CA 94301
Dear Steve:
ATTACHMENT A
STANFORD UNIVERSITY
July 6,2010
Pursuant to Section 10.1 of the Development Agreement (the '~Agreement';) dated May 24,
2005 between The Board of Trustees of the Leland Stanford Junior University ("Stanford")
and the City of Palo Alto ("City"), Stanford is required to submita brief annual report on
the status of the Housing, as that term is defined in the Agreement, and building activity in
the Stanford Research Park. In the order specified in the Agreement, the building activity
that has occurred in the past year includes the following:
0) . additional square footage arwroved and/or built in the Research Park: In July
2009, the City of Palo Alto approved the construction of an approximately 85,OOO.square
foot office/lab building by Lockheed Martin at 3251 Hanover. According to Lockheed's
application, the new building would replace an existing 55,735 square foot structure and
would result in approximately 29,265 square feet of additional building square footage.
According to Lockheed and city staff, Lockheed does not have building permits for
the new building and has not begun construction; they are currently reworking their plans,
which, when finalized, will require new approval from the City of Palo Alto and Stanford
before construction can comnlence.
(ii) any changes in Site boundaries with a map indicating the changes: There were
no changes to Site boundaries in the last year.
(iii) Replacement Square Footage built and Associated Square Footage used
during the previous year and since the Effective Date: Since the Effective Date, 100,000
square feet of Replacement Square Footage and 330,000 square feet of Associated Square
STANFORD REAL ESTATE OFFICE
2755 Sand Hill Road, Suite 100 .. Menlo Park, CA 94025 • T: 650.926.0300 .. F: 650.854.9268
Mr. Steve Emslie
July 6,2010
Page 2
Footage have been approved and constructed now that the project at 3401 Hillview Avenue
has been completed.
(iv) applications for additional square footage signed or authorized by Stanford by
Site, with the quantity o(new square footage for each: Stanford approved an application by
Lockheed Martin to construct an approximately 85,000 square foot building at the property
3251 Hanover Street. This building would replace an existing 55,735 square foot structure
and would result in approximately 29,265 square feet of additional building square footage.
According to Lockheed and city staff, Lockheed does not have building permits for
the new building and has not begun construction; they are currently reworking their plans,
which, when finalized, will require new approval from the City of Palo Alto and Stanford
before construction can commence.
(v) Housing units under construction during the previous year and since the
Effective Date: No Housing has been constructed in the last year or since the Effective
Date.
Attached to this summary is a more detailed table of the building activity in the Research
Park. This table accounts for the cumulative building activity that has taken place in the
Research Park since the inception of the Agreement.
Please let m.e know if any of the above information or the attachments needs further
clarification.
Sincerely, / 8fJ~
ean Snider.
Managing Director, Stanford Real Estate
cc: Robert Reidy
Debra L. Zumwalt
Larry Horton
Jean McCown
Bill Phillips
Mayfield Annual Report
Status of devel.opment under Mayfield Development Agreement
Stanford Research Park
Jllly 6,2010
€ommercial Development Rights -Summary
Phase I Replacement Square Footage
Phase II Replacement Square Footage
Associated Square Footage
Housfng_Development Rigbts I Guaran.tee
1451 California Avenue
1501 California Avenue
] 60 I California A venue
2450 EI Camino Real
2470 EI Camino Real
2500 EI Camino Real
Totals
Housi.ng Development Guarantee
Guaranteed Dwelling Units
Dwelling Units applied for to date
Dwelling Units constructed to date
Remaining Guaranteed Dwelling Units
Vested
100,000
200,000
1,200,000
Site Acreage
4.52
3.93
8.51
0.58
0.58
0.64
18.77
To be applied. for by
December 31. 2013
185
o
o
185
Approved Under Construction Constructed Remaining
100,000 0 1.00,000 ° ° ° ° 20~OOO
330,000 0 330,000 870,000
Existin.g
Square Footage
68,552
69,793
151,.915
12,780
12,780
14,300
330,120
To be applied for by
.December 31. 2020
250
o
o
250
Housing Applied for
o
o
o
o
o
o
°
Housing Constructed
o
o
o
o
o
a
o
Mayfield Annual Report
Revised List of Additonal Square Footage Developments Since the Effective Date
Stanford Research Park
July 6, 2010
Mayfield Development Applications
Designated Site
1) 3401 Hillview Avenue
Non-Mayfield Development Applications
Site
1.) 3412 Hillview Avenue
Constructi.on completed June 2008
Date of
Designated Project Designation Replacement SF Associated SF
3401 Hillview Avenue 4/27/2006 100,000 330·,000
Totals
Remaining Phase I Replacement SF
Remaining Phase H Replacement SF
Remaining Associated SF
Existing
100,000
o
200,000
Acreage Gross Floor Area Existing FAR
5.7 68,278 0.28
330,000
Existing Total
fuillill
68,278
Proposed Addi.tional
Gross Floor Area Gross Floor Area Proposed FAR
73,978 5,700 0.30
Proposed Total
fuLEl:
73,978
Additional Total
S9.£W)
5,700
Attachment B
Status of Development under Mayfield Development Agreement
Commercial Development Rights
I
Replacement Square Footage
Vested Ap~roved Remaining
Phase 1 Replacement Sguare Footage 100,000 100,000 0
Phase 2 Replacement Sguare 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
Sguare Feet Sguare Feet
Designated Site Designated Project Designated Designated Total Project Sguare Feet Status
Project 1 3401 Hillview 3~0,000 100,000 430,000 Completed
Non Designated Projects in :Stanford Research Park
Project Application # Address Demolish Proposed Net +/-FAR Status
06PLN-00000-00157 3412 Hillview Avenue 68,278 73,978 5,700 Completed
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* Proj ects subj ect to the Development Agreement
Housing Development Rights
Housing Development
Guarantee
Application before Application before
12/31/2013 12/31/2020 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
Housing Sites Site Acreage Footage Demolished Applications Housing Constructed
1451 California 4.52 68,552 0 0 0
1501 California 3.93 69,793 0 0 0
1601 Californ ia 8.52 151,915 0 0 0
2450 EI Camino Real 0.58 12,780 0 0 0
2470 EI Camino Real 0.58 12,780 0 0 0
2500 EI Camino Real 0.64 14,300 0 0 0
18.77 330,120 0 0 0
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