HomeMy WebLinkAbout2004-10-04 City Council (4)City of Palo Alto
CitY Manager’s
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:OCTOBER 4, 2004 CMR: 436:04
SUBJECT:ANNUAL PUBLIC REVIEW OF STANFORD UNVERSITY’S
COMPLIANCE OF THE DEVELOPMENT AGREEMENT FOR
THE SAND HILL 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.
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 i997, 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 E1 Camino Real. A development agreement vesting
these appr.ovals 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 June 28, 2004 memo the Stanford Management Company describes
Stanford’s 2002-03 activities related to implementation of the development agreement.
These activities include
CMR: 436:04 Page 1 of 3
Approval by the City ofPalo Alto’s Planning Division of BMR rents for 63 leased or
renewed units effective October 13, 2002.
Planting over 80,000 native grass plugs in conformance with the Native Grassland
Restoration Report.
Continued subsidization of the on-site retail store at the Stanford West Apartments 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 around late spring or early summer of 2005.
Commencement of the construction on the final segment of the Sand Hill Road
Improvements after approvals from the City of Menlo Park (November 12, 2002) and
the County of San Mateo (June 10, 2003).
Approval by the City of Palo Alto of a budget amendment ordinance for the seismic
retrofit of the Sand Hill Road Bridge in the amount of $2,494 to accept and expend
state grant funding.
The following changes occurred at the Stanford Shopping Center in 2002/2003;
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.
Sony Style and The Territory Ahead opened in 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.
ATTACHMENTS
Attachment A:June 28, 2004 memo from Diane Healey
CMR: 436:04 Page 2 of 3
PREPARED BY:
R/oland A. River’~
Planner
ST’ V , ENSLIE
Director of Planning and Community Environment
CITY MANAGER APPROVAL: " ..
dadE.IMIEY HTkRRISO~)~ "
Z~ssistant City Manger
cc:Stanford Management Company (Jim Inglis, Diane Healey)
Stanford University (Larry Horton)
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
CMR: 436:04 Page 3 of 3
STANFORD MANAGEMENT COMPANY
June 28,2004
ATTACHMENT A
RECEIVED
JUN 2 9 200
Department of Planning &
Community Environment
Christopher A. Riordan
Planner
City of Palo Alto
Department of Pianning and Community Environment
250 Hamilton Avenue
P.O. Box 10350
Palo Alto, CA 94303
Sand Hill Road Projects Annual Report
August 2002 - July 2003
Dear Christopher,
Pursuant to the Development Agreement, this report is being provided for the
period from August 1, 2002 to July 31, 2003. 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 fourth year of operation.
September 30, 2002: BMR rents were approved by the City of Palo Alto
Planning Division for leased or renewed units effective October 13, 2002.
There are currently 63 BMR units. A detailed BMR 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, over
80,000 native grass plugs were planted during this period. Third year
results show that restoration was progressing 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.
2770 SAND HILL ROAD MENLO PARK, CA 94025 PH ¯ 650/ 926-0200
Sand Hill Road Projects Annual Report
August 2002 - July 2003
Page 2
Senior Housinq
CC-Palo Alto, Inc. secured construction financing and building permits required
to develop Classic Residence by Hyatt in Palo Alto.
July 15, 2003: Classic Residence by Hyatt commenced 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 begin move-in around late spring/early summer 2005.
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 t0018) in the amount of $2,494 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 #143826 in the amount of $2,000, dated June 14 2004, for
costs incurred during the review and approval period.
Sincerely,
Diane Healey
Managing Director, Real Estate
cc: Sandy Skaggs/Bingham McCutchen
2770 SAND HmL ROAD, MENLO PAr{K, CA 94025 PNONE: 650/926-0200 FAX: 650/854-9268