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HomeMy WebLinkAboutID-3048 City of Palo Alto (ID # 3048) City Council Informational Report Report Type: Informational Report Meeting Date: 9/18/2012 September 18, 2012 Page 1 of 3 (ID # 3048) Title: Annual Review "Mayfield" Development Agreement Subject: 2011-2012 Annual Review of Compliance with the “Mayfield” Development Agreement with Stanford University From: City Manager Lead Department: Planning and Community Environment Recommendation 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 2011-2012. 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.  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. September 18, 2012 Page 2 of 3 (ID # 3048)  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. Stanford is entitled to use the remaining 200,000 square feet allowed under the Development Agreement only when it has committed to building a housing project on the sites made available by the demolition of the office developments at the El Camino Real and California Avenue sites. The Development Agreement requires an application for at least some of the housing to be submitted to the City by 2013. 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 5, 2012 memo from Stanford Real Estate Office (Attachment A) describes Stanford’s 2011-12 activities related to implementation of the Development Agreement. In April of 2012, the City approved with conditions and entitled a project at 3431 Hillview Avenue for the demolition of 255,000 square feet of existing square footage and the construction of four two- story buildings totaling 345,270 square feet, a net increase of approximately 90,000 square feet. In July of 2012 (Attachment B), Stanford notified the City that it was designating 3431 Hillview as a “Designated Project” pursuant to section 6.3.2 of the Development Agreement and plans to utilize the 90,000 square feet of additional square footage resulting from the project as Phase 2 Replacement Square Footage. Pursuant to section 6.1.5 of the Development Agreement, a building permit for construction of any project utilizing Phase 2 Square Footage will not be issued until (a) demolition of the related Existing Square Footage and (b) the occurrence of one of the following with respect to the application for the Related Housing:  Architectural Review Approval by the Director of Planning and Community Environment without an appeal; or  Architectural Review Approval by the City Council after an appeal; or  Appeal without action by the City Council within 60 days after the appeal is filed. September 18, 2012 Page 3 of 3 (ID # 3048) No demolition permit of the related Existing Square Footage located at the El Camino and California Avenue Sites has been requested in the last year and no Related Housing has been requested nor constructed in the last year or since the Effective Date of the Development Agreement. There were two other projects, located at 3130 Hansen Way and 3251 Hanover Street, which received Architectural Review approval in the last year and are currently in various stages of the building permit process. These projects are not “Designated Projects” under the “Mayfield” Development Agreement and do 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 2011/2012. 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 annual review is an informational report and is not a project under the California Environmental Quality Act. No environmental assessment is required. Attachments:  Attachment A: July 5, 2012 Memo from Stanford Real Estate Office (PDF)  Attachment B: Notice of Designated Project at 3431 Hillview Avenue (PDF)  Attachment C: Table of Status of Development under Mayfield Development Agreement (PDF) Prepared By: Roland Rivera, Senior Planner Department Head: Curtis Williams, Director City Manager Approval: James Keene, City Manager Attachment B Status of Development under Mayfield Development Agreement rev. 08.12 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 330,000 100,000 430,000 Approved Project 2 3431 Hillview 0 90,000 345,270 Approved* 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 3000 Hanover Avenue 0 37,762 37,762 Building Permit Issued (11/10/11) 11PLN-00096 3130 Hansen Way 18,629 30,200 11,571** Building Permit Issued (03/15/12) 11PLN-00336 3251 Hanover Avenue 55,375 82,120 26,745 Building Permit Issued (05/30/12) 11PLN-00458 3431 Hillview Avenue 255,272 345,270 90,000 Building Permit Process 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 0 0 0 Dwelling Units Constructed to date 0 0 0 Remaining Guaranteed Dwelling Units 185 65 250 Housing Sites Site Acreage Existing Square Footage Demolished Housing Applications Housing Constructed 1451 California 4.52 68,552 0 0 0 1501 California 3.93 69,793 0 0 0 1601 California 8.52 151,915 0 0 0 2450 El Camino Real 0.58 12,780 0 0 0 2470 El Camino Real 0.58 12,780 0 0 0 2500 El Camino Real 0.64 14,300 0 0 0 18.77 330,120 0 0 0 ** 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. * Building Permit for the 90,000 square feet of Replacement Square Feet can be issued after Stanford has committed to building a housing project on the sites made available by the demolition of the office developments at the El Camino Real and California Avenue sites. Total Project consist of (4) 2-story buildings totalling 345,270 sq. ft. One of the new stand-alone 2-story building is where the 90,000 sq ft Replacement Square Footage is assigned.