HomeMy WebLinkAboutStaff Report 6359
City of Palo Alto (ID # 6359)
City Council Staff Report
Report Type: Informational Report Meeting Date: 3/21/2016
City of Palo Alto Page 1
Summary Title: Annual Review "Mayfield" Development Agreement
Title: 2014 - 2015 Annual Review of Compliance with the "Mayfield"
Development Agreement with Stanford University
From: City Manager
Lead Department: Planning and Community Environment
RECOMENDATION
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 2014-2015.
BACKGROUND
In May of 2005, the City Council entered into an agreement with Stanford University which
grants rights to Stanford for certain specified development subject 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 corner 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.
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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.
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.
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
The July 10, 2015 memo from Stanford Real Estate Office (Attachment A) describes Stanford’s
2014-15 activities related to implementation of the Development Agreement. Pursuant to
sections 5.4 and 5.5 of the Development Agreement:
Stanford applied for and received Architectural Review approval for the 70 units of
below market rate housing located at 2450-2500 El Camino Real on April 14, 2014 and
demolished the commercial buildings existing on the property in February of 2015.
Stanford applied for and received Architectural Review Approval and a tentative map for
180 units of faculty housing located at 1451-1601 California Avenue on June 23, 2014,
with Council requiring minor adjustments to the original development proposal. The
final map was recorded on January 29, 2015. The commercial buildings existing on the
property were demolished between November 2014 and April 2015.
Construction for both housing development projects is now ongoing, although Stanford
has recently proposed an amendment to the final map for 1451-1601 California Avenue
due to soil contamination on the site. This proposal will be presented to the City Council
for review and approval in the coming months.
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A “Designated Project” at 3431 Hillview, a recipient of 90,000 square feet of Phase 2
Replacement Square Footage (11PLN-00458), was not constructed and the 90,000
square feet of Phase 2 Replacement Square Footage was not utilized at that time. A
new project at 3431 (3421) Hillview was proposed and received approval on December
17, 2014 (14PLN-00300) to allow the demolition and replacement of an existing 85,733
square foot building and a construction of a new stand-alone 90,000 square foot
building. This new project will utilize the previously approved 90,000 square feet of
Phase 2 Replacement Square Footage.
Stanford designated 1450 Page Mill as a “Designated Site” (see Attachment C) and
designated 14,861 square feet of Phase 2 Replacement Square Footage as part of their
proposal to build a 74,400 square foot building to replace an existing 59,539 square foot
building. The 1450 Page Mill “Designated Project” (15PLN-00011) proposes 14,861
square feet of Phase 2 Replacement Square Footage, 59,539 square feet of Associated
Square footage, and 3,234 square feet of amenity space which does not represent gross
floor area or Replacement Square Footage. This project was still under review as of July
10, 2015 and the eventual outcome of the approval process will be described in the
2015-2016 “Mayfield” Development Agreement Annual Monitoring Report.
Stanford designated 3170 Porter as a “Designated Site” on March 27, 2015 (see
Attachment D) and designated 29,046 square feet of Phase 2 Replacement Square
Footage as part of their proposal to build a 96,626 square foot building to replace an
existing 67,580 square foot building. The 3170 Porter “Designated Project” (15PLN-
00109) proposes 29,046 square feet of Phase 2 Replacement Square Footage, 67,580
square feet of Associated Square Footage, and 1,980 square feet of amenity space
which does not represent gross floor area or Replacement Square Footage. This project
was still under review as of July 10, 2015 and the eventual outcome of the approval
process will be described in the 2015-2016 “Mayfield” Development Agreement Annual
Monitoring Report.
As of this monitoring period, Stanford has 66,093 square feet remaining from the
330,000 square feet of Phase 2 Replacement Square Footage allowed under this
Development Agreement. This is contingent upon the approval of both 1450 Page Mill
and 3170 Porter projects.
As of this monitoring period, Stanford has 742,881 square feet remaining from the 1.2
million square feet of Associated Square Footage allowed under this Development
Agreement. This is contingent upon the approval of both 1450 Page Mill and 3170
Porter projects.
Demolition of the approximately 330,120 square feet of Existing Square Footage at
1451-1601 California Avenue and 2450-2500 El Camino Real were permitted and
completed between November 2014 and April 2015.
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Other notable activities for this monitoring period include:
A lease line adjustment was made to separate 3160 Porter and 3170 Porter. Please see
Attachment A for before and after plat maps
A lease line adjustment was made to 3251 Hanover to accommodate the “Steep Slope
Property, LLC” ground lease of approximately 10 acres of the estimated 26 acre total
site of 3251 Hanover. Lockheed Martin Corporation retained its 16 acres ground lease of
3251 Hanover site.
A project located at 1050 Page Mill Road (14PLN-00074) proposes to demolish and
replace approximately 265,895 square feet of commercial space and was under review
as of July 10, 2015. The project also proposes to add 10,745 square feet of employee
amenity space which does not represent gross floor area. This project is not a
“Designated Project” under the “Mayfield” Development Agreement and does not
utilize any replacement or associated square footage.
A project located at 2600 El Camino Real (15PLN-00275) proposes to demolish and
replace approximately 62,616 square feet of commercial space and was under
preliminary review as of July 10, 2015. No additional gross square footage is proposed
to be added. The project will undergo a formal review process once the preliminary
review is completed. This project is not a “Designated Project” under the “Mayfield”
Development Agreement and does not utilize any replacement or associated square
footage.
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 2014-2015.
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.
Attachments:
Attachment A: July 10, 2015 Memo from Stanford Real Estate Office (PDF)
Attachment B: Status of Development under Mayfield Development Agreement Table
(PDF)
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Attachment C: Notification of 1450 Page Mill Designated Site and Designated Project
(PDF)
Attachment D: Notification of 3170 Porter Dr Designated Site and Designated Project
(PDF)
ATTACHMENT A
Attachment B
Status of Development under Mayfield Development Agreement rev. 07.15
Commercial Development Rights
Replacement Square Footage
Vested Approved Remaining
Phase 1 Replacement Square Footage 100,000 100,000 0
Phase 2 Replacement Square Footage 200,000 90,000 110,000
Total 300,000 190,000 110,000
Associated Square Footage
Vested Approved Remaining
1,200,000 330,000 870,000
Designated Projects
Designated Site Designated Project Associated Square Feet Designated Replacement Square Feet Designated Total Project Square Feet Status
Project 1 3401 Hillview Avenue 330,000 100,000 430,000 Approved
Project 2 3431 (3421) Hillview Avenue 0 90,000 345,270 Approved1
Project 3 1450 Page Mill Road 59,539 14,861 74,400 Under Review2
Project 4 3170 Porter Drive 67,580 29,046 96,626 Under Review3
Total 457,119 233,907
Allowed under Development Agreement 1,200,000 300,000
Remaining under Development Agreement4 742,881 66,093
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
11PLN‐00056 / 11000‐01715 3000 Hanover Avenue 0 37,762 37,762 Completed
11PLN‐00096 / 11000‐03019 3130 Hansen Way 18,629 30,200 11,571a Completed
11PLN‐00336 / 11000‐03145 3251 Hanover Avenue 55,375 82,120 26,745 Completed
14PLN‐00300 / 15000‐00258 3431 (3421) Hillview Avenue 255,272 345,270 90,000 Under Review
12PLN‐00474 / 13000‐01221 911 Hansen Way 1,941 5,672 3,731 Completed
12PLN‐00283 /12000‐03029 1701 Page Mill Road 67,000 116,000 49,000b Completed
14PLN‐00074 / 14000‐01065 to 01069 1050 Page Mill Road 265,895 276,640 10,745c Under Review
15PLN‐00275 / 14000 2600 El Camino Real 62,616 62,616 0 Under Review
Total 224,509
Housing Development Rights
Housing Development Guarantee
Application before 12/31/2013 Application before 12/31/2020 Total
Guaranteed Dwelling Units 185 65 250
Dwelling Units w/ Applications to date 185 65 250
Dwelling Units Constructed to date 0 0 0
Remaining Guaranteed Dwelling Units 0 0 0
Housing Sites Site Acreage Existing Square Footage Demolished Housing Applications Housing Constructed
1451 California 4.52 68,552 68,552 0 0
1501 California 3.93 69,793 69,793 0 0
1601 California 8.52 151,915 151,915 180 0
2450 El Camino Real 0.58 12,780 12,780 0 0
2470 El Camino Real 0.58 12,780 12,780 0 0
2500 El Camino Real 0.64 14,300 14,300 70 0
18.77 330,120 330120 250 0
NOTES:
a. Although there is a net physical increase of 11,571 square feet on the site, the proposed 30,200 square feet amenity building does not count towards Gross Floor Area.
b.Although there is a net physical increase of 49,000 square feet on the site, the proposed 116,000 square feet structure includes approximately 4,665 sq. ft. of amenity space an does not count towards Gross Floor Area.
c. Although there is a net physical increase of 10,745 square feet on the site, the proposed project includes 10,745 square feet of amenity space and does not count towards Gross Floor Area.
NOTES:
1) Project and 90k of Phase 2 Replacement Square Footage was not built as originally approved in 2012. New application received approval on 12/14 (14PLN‐00300) which will utilize previously approved 90k Phase 2 Replacement Square Footage.
2) Project will also add 3,234 square feet of employee amenity space which does not count towards gross floor area.
3) Project will also add 1,980square feet of employee amenity space which does not count towards gross floor area
4) Contigent upon Designated Projects receiving Approval, Building Permit Issuance, & Certificate of Occupancy.
1451-1601 California Avenue Housing application received Planning Entitlement approval on 06/23/14 (13PLN-00433). Final Map Recorded on 06/29/2015 Grading and Construction underway since 11/2014.
2450-2500 El Camino Real Housing application received Planning Entitlement approval on 04/29/2014 (13PLN-00469). Building Permit (14000-01528)issued 02/13/2015. Grading and Construction underway since 02/2015.
Attachment C
Mr. James Keene
City Manager
City of Palo Alto
250 Hamilton Avenue
Palo Alto, California 94301
STANFORD
UNIVERSITY
March 27, 2015
RE: Notification of 3170 Porter Drive Status as a Designated Site and Designated Project under the
May 24, 2005 Palo Alto I Stanford University Mayfield Development Agreement ("MDA")
Dear Mr. Keene:
Stanford University is submitting a development review application for the City's review and approval of
the proposed redevelopment of 3170 Porter Drive, Palo Alto, California (the "Property") in the Stanford
Research Park. The application states that the 98,606 square foot building will replace an existing
structure totaling 67,580 square feet. The application also states that the new building includes 96,626
sf of office/R&D space (total Gross Floor Area) and 1,980 square feet of amenity space.
Pursuant to the May 24, 2005 Mayfield Development Agreement Section 6.3.1 and 6.3.2, this letter
serves as written notice that Stanford is electing to designate the 3170 Porter Drive Property as a
Designated Site and Designated Project. Pursuant to Sections 6.3.2 of the MDA, Stanford approves the
use of 29,046 square feet of Replacement Square Footage and 67,580 square feet of Associated Square
Footage comprising the total Gross Floor Area (96,626 square feet) of the Designated Project. Please
also find enclosed a spreadsheet showing all the Research Park projects that have used or are using
Replacement Square Footage and Associated Square Footage vested under the MDA, as well as the
remaining balances of Replacement and Associated Square Footages.
We appreciate the City staffs time in facilitating the review of this exciting Mayfield Project. As always,
if you have any questions, please do not hesitate to contact me at (650) 724-4787.
@u'
Tiff y Gnego ~
Managing Director, Asset Management-Stanford Research Park
Cc: v'Ms. Hillary Gitelman, Planning Director, Planning/Community Environment, City of Palo Alto
Ms. Molly S. Stump, City Attorney, City of Palo Alto
Ms. Cara Silver, Senior Assistant City Attorney, City of Palo Alto
Ms. Julie Jones, Perkins Coie
Office of the City Clerk (certified mail)
STANFORD REAL ESTATE
3160 Porter Drive, Palo Alto, CA 94304 · .650-724-4909
Attachment D
Mayfield Development Agreement Applications
Revised List of Additonal Square Footage Developments Since the Effective Date
Stanford Research Park, Palo Alto, CA
March 27, 2015
Mayfield Development Applications
Vested Square Footage
Designated Sites:
1) 340 1 Hillview A venue
2) 3431 Hillview A venue
3) 1450 Page Mill Road
4) 3170 Porter Drive
Designated Projects:
3401 Hillview Avenue
3431 Hillview A venue
1450 Page Mill Road
3170 Porter Drive
Date of Designation:
4/27/2006
7/6/2012
9/5/2014
3/27/2015
Subtotal
Remaining Balance Replacement Sq Ft
Remaining Balance Associated Sq Ft
Replacement Sg Ft
300,000
100,000
90,000
14,861
29,046
233,907
66,093
Associated Sg Ft
1,200,000
330,000
0
59,539
67,580
457,119
742,881
Total
Gross Floor Area
1,500,000
430,000
74,400
96,626
601,026