HomeMy WebLinkAboutStaff Report 1979City of Palo Alto (ID # 1979)
City Council Informational Report
Report Type: Informational Report Meeting Date: 8/1/2011
August 01, 2011 Page 1 of 2
(ID # 1979)
Title: Varsity Theater
Subject: Informational Report on 456 University Avenue
From:City Manager
Lead Department: City Manager
Executive Summary
This is an informational report regarding the zoning, historical features, and background on 456
University Avenue, currently the site of Border’s Books in Downtown.
Background
The Varsity Theatre opened at 456 University Ave in 1927 and operated as a theatre until 1994
when it closed as a single screen movie house. After the closure and prior to its conversion to
the current Border’s Books (a national chain bookseller) a significant response from the
community was raised in regards to keeping the theatre in operation, and maintaining its
historic significance in Downtown. However, groups intent on raising the funds necessary to
keep it in operation were unable to raise enough donations to sustain an on-going viable
theater.
In 1995, the building owner converted the theatre to a two-floor, aproximately 23,000 square
foot retail location. As per the Secretary of the Interior’s standards, many of the historical
aspects were preserved, including the courtyard, façade, and ability to re-convert to a theatre.
These preservations occurred in an era prior to developers bonuses for historic or seismic
upgrades, which would be available today.
Recently, it was announced that Border’s will be liquidating its assets and closing stores
nationwide. The Palo Alto location is expected to be closed prior to September 30, 2011. The
Borders’ vacancy has once again raised community interest in the idea of the Varsity reopening
as a theatre, highlighting Downtown economic and community chararacter issues.
The economic viability of a movie or performing arts theater for that site has significant
obstacles, especially in light of the constraints and costs of such a retrofit. Given its limited
Universtiy Ave frontage and large size, finding a retailer interested in the entire space also
presents a major challenge in an retail environment facing serious competition from the
internet and newer retail destinations within Palo Alto’s market area.
August 01, 2011 Page 2 of 2
(ID # 1979)
Zoning
The zoning for this property is CDC-GF-P (Community Downtown Commercial with Ground
Floor and Pedestrian Combining Districts).Within this district,allowable ground floor
uses include restaurants, hotels, personal services, retail services, theaters,travel agencies,
and similar uses.Other uses, such as business/trade schools, commercial recreation, day care,
financial services,and general business services may be allowed with a conditional use permit.
Office uses on a site within the GF combining district are allowed on upper floors, and can only
be permitted on the ground floor if the area does not exceed 25% of the ground floor area and
does not front on a street. The building does include a substantial area at ground level that is
oriented to the parking lot behind, rather than to University Avenue.Floor area on the site is
limited to 1:1,which may be exceeded only through seismic or historic rehabilitation bonuses
or the purchase of transferable development rights (TDRs). Staff believes that the existing floor
area already exceeds the 1:1 FAR limit.
Historic
The property is listed as a Category #1 Historic Resource on the City’s Historic Inventory, the
highest level of significance designated by the City. Any exterior modifications would be subject
to review by the City’s Historic Resources Board (HRB) and, if significant, would be analyzed in
an environmental review (CEQA) document that would be forwarded to the State Historic
Preservation Officer for review and comment. The analysis for HRB review would focus on the
project’s compliance with the Secretary of the Interior’s Standards for Rehabilitation.The HRB
would provide a recommendation to the Architectural Review Board, which would then provide
a recommendation to the Director of Planning and Community Environment (Director) for
action. The Director's action would be appealable to City Council.
Interior modifications (no impact on the exterior) would generally only require HRB review if
coupled with a request for a historic rehabilitation floor area bonus. If no exterior changes are
required and no bonus is requested, only a building permit is required.
Prepared By:Thomas Fehrenbach, Econ Dev Mgr
Department Head:James Keene, City Manager
City Manager Approval: James Keene, City Manager