HomeMy WebLinkAboutStaff Report 424-10TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: DECEMBER 6, 2010
TYPE OF REPORT: CONSENT
DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
CMR: 424:10
SUBJECT: Annual Public Review of Compliance of Development Agreement with
Stanford University for the Sand Hill Road 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 2009-2010 reporting period.
2. 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 Road Corridor Projects (Projects). The Projects include the
Stanford West Apartments (Apartments), Senior Housing, Shopping Center modifications 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 El 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. This report covers Stanford's 2009-2010
activities.
DISCUSSION
The attached October 13, 2010 memo (Attachment A) from Stanford Management Company
describes Stanford's 2009-10 activities related to implementation of the development agreement.
Construc~ion related to the Sand Hill Road Corridor Projects was completed during earlier
reporting periods. Post-construction activities include:
• Stanford West Apartments are now in their ninth year of occupancy and the number of
Below Market Rate (BMR) units increased to 120 units in accordance with the Agreement.
The on-site retail store and the Children's Creative Learning Center, a child care center at the
CMR:424:10 Page 1 of3
Stanford West Apartnlents, also continue operations with Stanford continuing to subsidize
the store to offset the on-going loss from operations.
• The Classic Residence Senior Housing by Hyatt, operating in its fifth year, changed its
corporate name to Vi and the community is now named Vi at Palo Alto. The independent
living units occupancy is at a 100% with a significant wait list and the Health Care Center,
with 38 assisted living units, 24 memory support units and 44 skilled nursing units, is also
operating at high occupancy levels. The community is a participant of the Palo Alto Green
renewable energy program.
• The Roads phase of the Sand Hill Road Project was completed during earlier reporting
periods. Stanford continues to maintain private street improvements and landscaping within
portions of Sand Hill Road, El Camino Real, Quarry Road, and Arboretum Road consistent
with the Agreement.
• Simon Property Group, the lessee and operator of the Stanford Shopping Center, withdrew
their application to expand the Stanford Shopping Center on April 2009. The expansion
would have required amending the Sand Hill Road Corridor Projects Development
Agreement.
The terms of the Sand Hill Road Corridor Proj ects 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 impacts from 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
Issuance of the Certificate of Compliance and consent to an Assignment and Assumption
Agreement are not projects under the California Environmental Quality Act, and no
environmental assessment is required.
PREPARED BY:
CMR:424:10
/~wc~
ROLAND RIVERA
Senior Planner
Page 2 of3
DEPARTMENT HEAD:
CURTIS WILLIAMS
Director of Planning and Community Environment
CITY MANAGER APPROVAL:
ATTACHMENT
JP~10~cLsp
t:~ JAMES KEENE :J -Y City Manager
Attachment A: October 13,2010 memo from Jim Ingli~
cc: Stanford Management Company (Jim Inglis)
Stanford Management Company (Bill Phillips)
Stanford Management Company (Jean Snider)
Stanford University (Larry Horton)
City of Menlo Park (Arlinda Heineck)
County of Santa Clara (Jody Hall Esser)
County of San Mateo (Jim Eggemeyer)
CMR:424:10 Page 3 of3
Attachment A
STANFO.RD
UNIVERSITY
October 13,2010
Roland Rivera
City of Palo Alto
Department of Planning and Community Environment
250 Hamilton A. venue
P.O. Box 10350
Palo Alto, CA 94303
RE: Sand Hill Road Corridor Projects Annual Report August 2009-July 2010
Dear Roland:
Pursuant to your request of September 15, 2010 t and consistent with the 1997 Development
Agreement between the City of Palo Alto and Stanford University for the Sand Hill Road
Conidor Project, this report is submitted to the City as part of the City's annual review of the
project. This report covers the period, August 1, 2009 to July 31, 2010.
Stanford continues to be in compliance with the tenus of the 1997 Development Agreement.
Construction relating to the Sand Hill Road Corridor Project, including the Stanford Shopping
Center, Senior Housing, Stanford West Apartments and the Roadway portion of the Project,
was completed during earlier reporting periods. A summary of the activities and conditions
during the current reporting period follows.
Stanford Shopping Center
" The Stanford Shopping Center ("SSC") was sold to Simon Properties Group ("SPO") in
2003. On November 17t 2003, the City Council approved the Assignment and
Assumption Agreement transferring SSC perfonuance responsibilities under the 1997
Development Agreement from Stanford to SPG CenterJ LLC.
Roadway Project
" Consistent with the Agreement, Stanford continues to maintain the Project's private
street improvements as well as maintaining the landscaping within portions of the Sand
Hill Road, EI Camino Real, Quarry Road and Arboretum Road public rights of way.
Stanford West Apartments
• The Stanford West Apartments completed their ninth year of operation and entered their
tenth year during the reporting period.
• In accordance with the tenus of the Development Agreement, the Below Market Rate
("BMR") units increased to 120 units. A detailed BMR report is submitted and
STANFORD REAL ESTATE OFFICE
2755 Sand HllI Road, Suite 100 • Menlo Park, CA 94025 "T: 650.926.0300 • F: 650.854.9268
Mr. Roland Rivera
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October 13,2010
approved by the Palo Alto Housing Corporation each year consistent with the
Agreement.
• The on-site retail store remained open during the reporting period. The store is located
adjacent to the Community Building and-is open seven days a week; weekdays 7 am to 7
pm; weekends 10 am to 5 pm. The store first opened June 2,2002. Stanford continues
to subsidize the store to offset the on-going losses from store operations.
• The Children's Creative Learning Center ("CCLC',) operates a child care center at
Stanford West on a site located between the Village Green and Govemorts Lane.
Consistent with the Development Agreement, the CCLC's annual rent is $1 per year.
Senior Housing (Vi at Palo Alto)
• On March 27, 2000~ the Palo Alto City Council approved an Assignment and
Asswnption Agreement under which CC-Palo Alto, Inc, a subsidiary of Classic
Residences by Hyatt, assumed the Senior Housing Project Rights and Obligations under
the 1997 Development Agreement.
• Following the public offering of the Hyatt hotels, Classic Residence by Hyatt changed
its corporate name to Vi in June of 2010. Ownership, operations and management
remain unchanged. The community is now named Vi at Palo Alto.
• Vi at Palo Alto is currently participating in the PaloAltoGreen renewable energy
program.
• The community includes 388 independent living units and a Health Care Center
comprised of38 assisted living, 24 memory support and 44 skilled nursing units.
• The independent units are all sold and the wait list is long. With the average age of
residents t currently at 83, there has been an increase in the nwnber of seniors
transferring from the independent living units to the Care Center. Currently, 46% of the
Care Center residents are now on continuing care contracts. Current occupancy of the
entire Health Care Center is 88% with the memory support at 100%, assisted living at
90% and skilled nursing units at 80%.
Enclosed is a check (No. 1206090; October 12,2010) in the amount of $2,000.00, as payment
for costs incurred by the City as part of its annual review of the Agreement.
Sincere~, 1 L
J~
Director of Design and Construction
STANFORD REAL ESTATE OFFICE
2755 Sand Hill Road, Suite 100· Menlo Par~ CA 94025 ·T: 650.926.0300· F: 650.854.9268
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