HomeMy WebLinkAboutStaff Report 352-05)
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C.ity of Palo Alto
City Manager's Report
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: AUGUST 8, 2005
DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
CMR: 352:05
SUBJECT: ANNUAL PUBLIC REVIEW OF COMPLIANCE OF DEVELOPMENT
AGREEMENT WITH STANFORD UNIVERSITY FOR THE SAND HILL
CORRIDOR PROJECTS
This is an information report and no Council action is required.
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.
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 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.
DISCUSSION
The attached July 8, 2005 memo from Stanford Management Company describes Stanford's
2003-04 activities related to implementation of the development agreement. These activities
include
• Annual detailed BMR report submitted to Palo Alto Housing Corporation monitoring the 63
currently leased BMR units in the Stanford West Apartment Development.
Page 1 of3
, ........
• Continued restoration of grasslands in conformance with the Native Grassland Restoration
Monitoring Report progressing toward development of a native grassland meadow.
• Continued operation of the on-site retail store at the' Stanford West Apartments; Stanford is
, subsidizing the store to offset the on-going loss from operations.
• Substantial progress in the, construction of the Classic Residence by Hyatt; residents are
expected to begin occupancy in mid-June 2005.
• Commencement of the construction on the final segment of the SandHill Road
Improvements after approvals from the City of Menlo Park (November 12, 2002) and the
County of San Mateo (June 10, 2003); expected to be completed by December 2005.
The following changes occurred at the Stanford Shopping Center in 20031 2004;
• City of Palo Alto consented on November 17, 2003 to the Assignment and Assumption
Agreement between Stanford University and the Simon Property Group for a 51-year lease of
the, Stanford Shopping Center. '
RESOURCE IMPACT
,None.
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.
Page 2 of3
ATTACHMENTS
. 1. July 8, 2005 memo from Jim Inglis
PREPARED BY: ~·.~2~. ~~Q.~1QII!(·~Q_ .. ---j.}2L--__ , _-R~ A. Rivera· . OJ
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CITY MANAGER APPROVAL:
Assistant City Manager
cc: Stanford Management Company (Jim Inglis)
Stanford University (Larry Hortori)
City of Menlo Park (David Boesch)
County of Santa Clara (Ann Draper)
County of San Mateo (Gaye Quinn)
David Newman
Charles Carter
Bill Phillips
Jean Snider· .
Page 3 of3
STANFORD MANAGEMENT COMPANY
July 8,2005
Christopher A. Riordan
CITY OF PALO ALTO
Department of Planning and Community Environment
250 Hamilton Avenue
P.O. Box 10350
Palo Alto, CA 94303
Re: Sand Hill Road Projects Annual Report
August 2003 -July 2004
Dear Christopher,
Pursuant to the Development Agreement, this report is being provided for the
period from August 1,2003 to July 31,2004. Development Agreement
compliance continues to be strictly adhered to by Stanford.
The following highlights the significant activity for the above reporting period:
Stanford West Apartments
The Stanford West Apartments are now in its fifth year of operation.
• SMR rents have remained consistent since October 13, 2002. Within this
period, there were 63 BMR units. A detailed SMR report is submitted to
the Palo Alto Housing Corporation each year in accordance with the
Development Agreement. .
• Consistent with the Native Grassland Restoration Monitoring Report
prepared by Zentner and Zentner for the Stanford West Apartments,
additional native grass plugs were planted during this period. Fourth year
results show that restoration continues to progress well toward the
development of a native.grassland meadow.
• The on-site retail store, which opened on June 2, 2002, continued to
operate during the reporting period. Stanford provided the subsidization
required to offset the· on-going loss from operations.
Senior Housing
• Classic Residence by Hyatt continued with the construction of 388
independent living units and a Health Care Center comprised of 38
Assisted Living units, 24 memory impaired units and 44 skilled nursing
units. Construction has substantially progressed and residents are
expected to move-in mid-June 2005 ..
Sand Hill Road Projects Annual Report
August 2002 -July 2003
Page 2
Stanford Shopping Center
• Stanford Shopping Center was sold to Simon Properties Group. On
November 17, 2003, City Council approves the Assignment and
Assumption Agreement transferring Stanford Shopping Center
performance responsibilities from Stanford to SPG Center, LLC under the
1997 Development Agreement.
Roads
Construction on the final segment of the Sand Hill Road Improvements
commenced in April 2004 and is expected to be completed by December 2005.
Project approvals secured during the reporting period include:
• November 12, 2002: Menlo Park City Council approved a Resolution
providing for an agreement between the City of Menlo Park and Stanford
to reconstruct the Sand Hill Road-Santa Cruz Avenue intersections and
related intersection approaches including Sand Hill Road from Santa Cruz
Avenue to the city limit at San Francisquito Creek.
• June 2, 2003: Palo Alto City Council approved a budget amendment
ordinance for the seismic retrofit of the SHR Bridge (capital improvement
program project 10018) to accept and expend state grant funding.
• June 10, 2003: County of San Mateo's Board of Supervisors approved
construction of the San Mateo County portion of the Sand Hill Road
Widening Project.
Enclosed is check #328412 in the amount of $2,000, dated June 24, 2005, for
costs incurred during the review and approval period.
SinC~reIY'-b ~
?t
Manager of Design and Construction
cc: Sandy Skaggs/Bingham McCutchen
2770 SAND HILL ROAD, MENLO PARK, CA 94025 PHONE: 650/926-0200 FAX: 650/854-9268