HomeMy WebLinkAboutID-3158 City of Palo Alto (ID # 3158)
City Council Informational Report
Report Type: Consent Calendar Meeting Date: 11/5/2012
November 05, 2012 Page 1 of 3
(ID # 3158)
Title: Annual Report Sand Hill Road Development Agreement
Subject: Final Annual Public Review of Stanford University's Compliance with
Development Agreement for the Sand Hill Road Corridor projects
From: City Manager
Lead Department: Planning and Community Environment
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 (“Agreement”) for the final 2011-2012 reporting period;
and
2. Find that Stanford University is not in default with the terms and conditions of the
Agreement and confirm that the Agreement has now terminated.
BACKGROUND
In June 1997, the City Council approved Comprehensive Plan amendments, zoning changes and
design applications for the Sand Hill Road 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 El Camino
Real. A development agreement vesting these approvals was entered into between Stanford
and the City and was effective on August 14, 1997 and continued for fifteen years from the
effective date. The development agreement requires annual City Council review of Stanford’s
compliance. This report covers Stanford’s 2011-2012 activities and will be the final annual
report for the project.
DISCUSSION
The attached August 29, 2012 memo (Attachment A) from Stanford Management Company
describes Stanford’s 2011-12 activities related to implementation of the development
agreement. Construction related to the Sand Hill Road Corridor Projects was completed during
earlier reporting periods. Post-construction activities include:
Stanford West Apartments are now in their eleventh year of occupancy and the number of
Below Market Rate (BMR) units remains at 120 units in accordance with the Agreement.
The on-site retail store and the Children’s Creative Learning Center, a child care center at
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the Stanford West Apartments, also continue operations with Stanford continuing to
subsidize the store to offset the on-going loss from operations.
The Classic Residence Senior Housing by Hyatt, operating on its seventh year, changed its
corporate name to Vi in June 2010 and the community is now named Vi at Palo Alto. The
independent living units are 98% sold with a stable wait list and the Health Care Center,
with 38 assisted living units, 24 memory support units and 44 skilled nursing units, is also
operating at high occupancy levels. The community is a participant of the Palo Alto Green
renewable energy program.
The Roads phase of the Sand Hill Road Project was completed during earlier reporting
periods. Stanford continues to maintain private street improvements and landscaping
within portions of Sand Hill Road, El Camino Real, Quarry Road, and Arboretum Road
consistent with the Agreement.
Simon Property Group, the lessee and operator of the Stanford Shopping Center, withdrew
its application to expand the Stanford Shopping Center on April 2009. The expansion would
have required amending the Sand Hill Road Corridor Projects Development Agreement.
The annual reporting period has traditionally ended on July 31st. Since the Term of the
Agreement ended just 2 weeks after July 31, 2012, this last and final reporting period was
extended two weeks past the traditional date to correspond with the end of the Agreement’s
Term. The term of the Sand Hill Road Corridor Projects Development Agreement terminated on
August 14, 2012.
RESOURCE IMPACT
There are no impacts from the development agreement compliance program that affect the
City’s General Fund.
POLICY IMPLICATIONS
This report does not represent any changes to existing City policies.
ENVIRONMENTAL REVIEW
Finding Stanford University’s compliance with the Terms of the Agreement is not a project
under the California Environmental Quality Act, and no environmental assessment is required.
Attachments:
Attachment A: August 29, 2012 Memo from Stanford Real Estate Office (PDF)
Prepared By: Roland Rivera, Senior Planner
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Department Head: Curtis Williams, Director
City Manager Approval: James Keene, City Manager