Loading...
HomeMy WebLinkAbout2003-06-23 City Council (5)TO: FROM: C ¢y of PaSo Alto C ty ep rt HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT:CITY MANAGER’S OFFICE DATE: SUBJECT: June 23, 2003 CMR:333:03 RECOMMENDATION FROM STANFORD LIAISON COMMITTEE FOR COUNCIL TO AUTHORIZE THE CITY MANAGER AND CITY ATTORNEY TO NEGOTIATE A DEVELOPMENT AGREEMENT WITH STANFORD UNIVERSITY BASED UPON OFFER LETTER REGARDING MAYFIELD SITE RECOMMENDATION The Council’s Stanford Liaison Commit-tee recommends that the City Council authorize the City Manager and City Attorney to negotiate a Development Agreement for the Mayfield site based on Stanford’s offer letter dated June 10, 2003. BACKGROUND Based on City Council direction in 2000, the City Manager and City Attorney negotiated a 4-Party Memorandum of Understanding (MOU) to allow the Palo Alto Unified School District (PAUSD) to reclaim Terman Community Center as a third middle school and relocate the Jewish Community Center (JCC). As part of these discussions, Stanford University offered the 6-acre Mayfield site as a permanent location for the Jewish Community Center. The City would get a 51-year lease for $1 per year and then lease the Mayfield site to the JCC for a community center. In exchange, the City would grant Stanford the vested right to build up to 130,000 square feet of commercial development in the Research Park, plus provide an incentive for Stanford to add housing in the Research Park. Subsequent to the Council approving the MOU (which included the draft Development Agreement with Stanford), the JCC decided to purchase the Sun Microsystems site as a permanent location. Consequently, on December 3, 2001, the Council received public input and conducted a discussion on whether to continue its pursuit of the Mayfield site CMR:333:03 Page 1 of 5 and for what uses. Most residents and all but one Council Member desired to continue efforts to secure the Mayfield site for community uses, such as athletic fields and community service facilities. In addition, Council Members and residents expressed ongoing interest in developing housing for the Research Park. Based on this Council discussion, the Council’s Stanford Liaison Committee continued to explore the possibility of Stanford helping the Palo Alto community address the athletic fields problem. In the midst of these discussions, the City’s Athletic Fields Committee finalized its short- and mid-term recommendations to create more fields and better use existing fields. The City Council endorsed the Athletic Fields Report on January 21, 2003, and incorporated the need to add and enhance athletic field space within the existing Top 5 Priorities for the Council. A key opportunity identified in the report was the use of the Mayfield site as an athletic fields complex. A staff team led by the City Manager continued to explore with Stanford the use of the Mayfield site for athletic fields as well as two other longer-term issues - housing in the Research Park and traffic mitigation generated by future development. After consultation with the Stanford Liaison Committee, Stanford made a formal offer of the Mayfield site on June 12, 2003. DISCUSSION The offer o letter (see attached) includes the following provisions: Stanford leases the 6-acre Mayfield site to the City for 51 years for $1/year for an athletic fields complex. Stanford builds the complex, which will be jointly designed by the Stanford Athletic Department and the City’s Community Services Department. The complex will include two lighted, competition-size soccer fields plus one practice soccer field; a restroorn!storage facility; and parking and landscaping. Once constructed, the complex will be turned over to the City to operate and maintain. In exchange, Stanford will receive a vested right to build 100,000 square feet of commercial development in the South Research Park (see attached map). To address the City’s housing concerns, Stanford agrees to build (once existing leases begin to expire in 2012), 250 housing units, including approximately 50 below-market-rate units, on E1 Camino Real and upper California Avenue (see attached map). CMR:333:03 Page 2 of 5 o o Stanford receives the right to re-build a maximum of 200,000 square feet out of a total 312,000 square feet of current commercial development displaced by the new housing. Stanford agrees to collaborate with the City in developing a traffic mitigation program for future development in the Research Park with the goal of reducing the use of single occupancy vehicles as the transportation mode of choice for the new development. RESOURCE IMPACT Stanford will fund and build the athletic complex at no expense to the City. The City will be responsible for maintaining and operating the athletic fields. If the City decides to install synthetic turf on one or more fields, it would be at the City’s expense. Staff estimates this cost as $600,000. The City is currently funding the Citywide traffic study that would be one of the key elements of the scope of work for the Supplemental Environmental Impact Report (SEIR). Stanford agrees to pay 50 percent of the cost of the SEIR, up to a maximum of $200,000. POLICY IMPLICATIONS Top 5 Priorities: Athletic Fields and Housin~ In respect to the use of the Mayfield site for athletic fields, the proposed agreement with Stanford responds to the Athletic Fields Report endorsed by the City Council. By action of the Council in 2003, athletic fields were incorporated into the Council’s Top 5 Priorities. The guarantee of 250 new units (including an estimated 50 BMR units) responds to the City’s Housing Element goals as well as one of the Council’s Top 5 Priorities. Although the site is listed on the Housing Element Appendix F Additional Potential Longer Term Housing Sites list, it is not on the Housing Sites Inventory. Since there is no new net commercial development over time as a result of this proposed agreement, the 250 units will help alleviate the jobs~ousing imbalance created by the Research Park. Top 5 Priority: Traffic and Transportation A Master Schematic Desig-n Plan for the E1 Camino Real corridor is currently being developed, which has among its goals the beautification of the corridor, the installation of bike lanes and the general calming of traffic. The conversion of the Mayfield site to playing fields is compatible with those goals. A proposed reduced pedestrian crossing distance of E1 Camino Real at California Avenue will provide a safe means of accessing CMR:333:03 Page 3 of 5 the Mayfield site from the California Avenue business district and the Caltrain station. The bike lanes will provide a convenient way to access the site, resulting in fewer vehicles trips. Additionally, the recent installation of red light enforcement indicators at the E1 Camino Real/Page Mill intersection is intended to facilitate the Police Department in citing red light-running vehicles, increasing the safety of the intersection for all modes of transportation and thus promoting safe access to the fields. The City will continue to encourage the use of alternate modes of transportation to the site through the implementation of the Bicycle Master Plan, VTA’s Bus Rapid Corridor, and other avenues in order to minimize vehicular impacts resulting from the development. The use of the Mayfield site as playing fields will be unlikely to significantly increase vehicle congestion in the area. While peak hour levels of service at the E1 Camino Real~age Mill intersection are in the E/E+ range, use of the park will occur mostly during off-peak and weekend times and so should have little effect on peak-hour traffic. Comprehensive Plan Policy L-7: Evaluate changes in land use in the context of regional needs, overall City welfare and obiectives, as well as the desires of surrounding neighborhoods. Consistency: Agreement with Stanford was deve!oped precisely to address community concerns/objectives for additional recreational space yet provide anticipated housing that would have been allowed on the site. Policy H-5: Discourage the conversion of lands designated as residential to non- residential uses and the use of multiple family residential lands by non-residential uses, such as schools and churches, unless there is no net loss of housing potential on a community-wide basis. Program H-20:As part of the Zoning Ordinance Update process, change the Zoning Code to disallow uses other than residential uses in a multiple-family residential zone unless the project can demonstrate an overriding benefit to the public or the proiect results in not net planned or existing housing loss. Planning Commission and City Council approval would be required in such instances. Consistency: Although the Mayfield site is planned and zoned to allow up to 240 units of housing, use of the site for playfields would be consistent with this policy since the Agreement calls for the offsetting provision of 250 units of housing on other sites. Policy C-27: Seek opportunities to develop new parks and recreation facilities to meet the growing needs of residents and employees of Palo Alto. Consistency: The Agreement provides recreation facilities for Palo Alto residents. CMR:333:03 Page 4 of 5 Policy C-30: Facilitate access to parks and community facilities bv a variet-v of transportation modes. Consistency: The site is located on a transit corridor centrally located in the City with good access to transit, bicycle routes and proximity, to residential neighborhoods. Policy C-30/Pro_o-ram B-18: Evaluate the location near the northwest comer of Page Mill Road and E! Camino Real for a hotel and conference facility. Use of the property for a hotel!conference facility has not been further evaluated since completion of the Comp Plan. Use of the site for hotel/conference facility was considered in the Comp Plan altematives studies in the EIR and not included in the adopted land use plan. In its discussion of options for the Mayfield site, the Council in December 2001 did not favor a hotel!conference facility. ENVIRON1VIENT~4~L REVIEW The proposed a~eement requires a Supplemental Environmental Impact Report. ATTACt~IENTS: Stanford Offer Letter Dia~am of Athletic Complex Map of E1 Camino Real and Upper Califorv_ia Avenue CITY MANAGER APPROVAL: CIVER:333:03 Page 5 of 5 STANFORD UNIVERSITY June I0, 2003 LARRY HORTON Associate "Vice President and Director of Gouernment and Community Relations The Honorable Dena Mossar, Mayor The Honorable Bern Beecham, Vice Mayor City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Dear Mayor Mossar and Vice Mayor Beecham: In the fall of 2000, Stanford responded to the City’s request for assistance in finding a site that could be used for relocating the Jewish Community Center, which was about to lose its home at the old Terman Junior High School. Stanford offered to the City a 51-year lease for $1 per year of the six-acre Mavfield site at the comer of E1 Camino and Page Mill Road in exchange for a transfer of development rights. The terms of the offer were set forth in Stanford’s letter to Mayor Kniss of October 5, 2000. Subsequently, Stanford and the CiVy Manager, operating under direction from the Council, negotiated a Development Agreement to implement the terms of Stanford’s offer. In September of 2001, the negotiated Agreement was submitted to the Council. Consideration of the Agreement was postponed while the Jewish Community Center sought a suitable property for purchase. The Center’s search was ultimate!y~ successful, and it was able to acquire proper~r that would permit it to remain in Palo Alto. This happy outcome was welcomed by all. In light of the changed circumstances, the Council’s Sta_ndord Liaison Con-tmittee and the City Manager requested that Stanford consider revising its offer of the Mayfield site. The Committee and the City Manager requested that we take into account the need for more housing and the Ci~"s need for recreational facilities, particularly playing fields. As requested, we have reviewed our Mayfield offer and given special attention to the needs that the Council’s Liaison Committee and the City Manager discussed with us. Accordingly, we offer to the Ci~; a package that responds to the Ci%,’s request, and we are prepared to negotiate and enter into a Development Agreement to implement it. The package consists of the following six conditions, each of which has been agreed to by Stanford and must be agreed to by the City: Office of Public Affairs Government and Community Relations Building 170. Firs~ Floor, Stanford. CA 943~;-90=0 T 6~0 ..... The Honorable Dena Mossar and Bern Beecham City of Palo Alto June 10, 2003 Page 2 of 4 Stanford will lease the Mayfield property to the City for 51 years at a rent of $1 per year for community purposes in accordance with the terms of the Ground Lease submitted to the City on September 4, 2001. Stanford will install on the entirety of the Mayfield site "The Stanford/Palo Alto Community Playing Fields" under a pre-defined scope of work consisting of the following: two natural grass competition soccer fields, one natural grass practice field, restrooms and storage fad~ties, intramural level lighting for the competition fields, approximately 100 surface parking sta!ls, and accent landscaping at the corner of Page Mi!l and E1 Camino. The fields will be designed collaboratively by the City and the Stanford Athletic Department and will be installed by Stanford. Upon completing the installation, Stanford will turn over the fields and assodated facilities to the City, which will have sole responsibility for operations, maintenance, and liability under the terms of the lease. The City will vest, upon approval of the Development Agreement, 100,000 square feet of commercial development in the South Research Park area under essenUally the same conditions specified in the September 4, 2001 Development Agreement. To address the City’s concerns for housing, Stanford will g-uarantee the construction of 250 units of housing (including the city’s requirement for below market rate units) under the following terms: The housing will be clustered in two areas: i) E1 Camino Housing (to be located_ a_t khe adctro~ao~ 9’~ q0, 9d.TN 9-~nn ~1 Camino) and ii) Upper California Housing (to be located at the addresses 1451, 1501, 1601 California Avenue). b~Assuming full site utilization, the E1 Cat,no Housing will be constructed with an overall average density no less than 23 units per acre and no greater than 30 units per acre and the Upper California Housing will be constructed with an overall average density no less than 11 units per acre and no greater than 20 units per acre. The foregoing site densities may be reviewed and refined during the negotiation on the Development Agreement. The sites selected for the g-uaranteed housing are currently under lease and will not be available until the leases expire. Construction of the housing will commence as soon as feasible after the expiration of the current ground leases for these properties. Applications for at least 185 units will be filed The Honorable Dena Mossar and Bern Beecham City of Palo Alto June 10, 2003 Page 3 of 4 with the City by December 31, 2013. Applications for the remaining 65 units will be filed by December 31, 2020. Stanford will diligently prosecute construction upon receipt of building permits. do Although 300,012 square feet of commercial buildings now sit on the sites selected for the 250 units of housing, Stanford will only require that 200,000 square feet of that displaced commerdal space be relocated elsewhere in the research park. The City wil! vest Stanford’s right to construct the housing in accordance with current City regulations (modified as necessary to accommodate above-referenced densities), and will vest Stanford’s right, after the first 100,000 square footage of commercial space is displaced, to relocate any additional displaced commercial square footage, but not to exceed 200,000 square feet, in the South Research Park area under essentially the same conditions specified in the September 4, 2001 Development Agreement. Processing and construction of the displaced commercial space may occur simultaneously with the housing. The housing and the displaced commercial square footage may be done in phases. No certificate of occupancy for the applicable commercial square footage may be granted until the housing that displaced it is completed. Note: Condition number 4 on housing mirrors a similar provision in the September 4, 2001 Development Agreement, except that the housing here is guaranteed; in the September 4 Agreement, the The City and Stanford will enter into a mutually acceptable Development Agreement, generally in the form previously submitted to the Council, but modified as necessary to reflect this package. The City,. will prepare a Supplemental Environmental Impact Report (SEtR) to update the Comprehensive Plan EIR with respect to future Research Park development and to consider the impacts of the proposed project described above. Stanford may withdraw this Mayfield offer if the EIR establishes mitigation measures that are not acceptable to Stanford. Stanford will pay 50% of the cost of the SEIR up to a maximum Stanford contribution of $200,000. We believe this package will permit the City to enjoy significant immediate communit%.~ benefits in exchange for assurances that Stanford endowment lands involved in the package can be put to use in a manner that supports the University and meets community needs. The Honorable Dena Mossar and Bern Beecham City of Palo Alto June 10, 2003 Page 4 of 4 In this package, we seek to achieve the objective we sought in the previous package: a collaborative agreement that is good for Palo Alto and good for Stanford. Of particular importance to Stanford and the community will be the opportunity to address traffic and transportation issues in the SEIR, both with regard to the elements of tNs offer and other future development in the research park. Stanford will bring its experience and experlise in traffic demand management and transportation programs to bear on this matter. Stanford will work with the City and the SEIR consultants to achieve workable mitigations appropriate to the research park and with the goal of reducing the use of single occupancy vehicles as the transportation mode choice for the new development. If you wish to move fol~ard on this offer, a Stanford team is prepared to work with the City to negotiate a Development Agreement. We would appreciate a response within thirty days telling us whether the Cit%~ wdshes to negotiate a development agreement to implement the offer explained in this letter. We look forward to wor -ldng with the City and other parties to strengthen the community, which is a source of pride to all of us. Sincerely, Associate Vice President Director, Government and Community Relations John L. Hermessy, President Isaac Stein, Chairman, Stanford University Board of Trustees Gordon Earle, Vice President for Public Affairs Frank Behest, City Manager, CitT of Palo Alto Page Mill Road STANFORD RESEARCH PARK HOUSING ~ El Camino Real ,--- PLA~NG FIELDS / Mavfield Site / HOUSING --’ California Avenue N.T.S.