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HomeMy WebLinkAboutStaff Report 3471 City of Palo Alto (ID # 3471) City Council Staff Report Report Type: Action Items Meeting Date: 3/18/2013 City of Palo Alto Page 1 Summary Title: Downtown Parking Near-Term Actions Title: Downtown Parking Update and Direction Regarding Near-Term Parking Actions From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends a MOTION that Council direct staff to evaluate and implement near-term (1- 6 months) downtown parking improvements, including but not limited to: a) an attendant parking trial in select downtown parking garages or lots (Lot R), b) a City commitment for reducing 50-100 employee permit spaces in the City Hall garage, c) evaluation of a potential public-private partnership for a new parking garage on Lot P, d) evaluation of restrictions on the creation/use of transfer of development rights (TDR), e) eliminating or revising zoning exemptions from parking requirements, and f) initiating parking restrictions and/or permit parking in adjacent residential neighborhoods, and to present the measures to the Planning and Transportation Commission for input. Although they represent distinct options, Council may discuss and approve items a), b), and c) in one motion. To ensure compliance with conflict of interest laws, Council should discuss and approve items d), e), and f) to allow Council Member and staff recusals, as described below. Executive Summary On November 13, 2012, Council considered several approaches to address downtown parking concerns, including an evaluation of the City’s Downtown Development Cap, as required by the Comprehensive Plan and Zoning Ordinance. City of Palo Alto Page 2 At the same time, however, downtown parking shortages continue to be exacerbated by ongoing development. The report proposes that several near-term actions be evaluated for Council consideration and then implemented over the next six-month period. Among the actions are: a) implementing a trial attendant parking program in one parking garage; b) a City commitment to reduce 50-100 employee permit spaces in the City Hall garage; and c) exploring a potential public-private partnership for a new parking garage on Lot P. The report also proposes: d) evaluating restrictions on the creation/use of transfer of development rights (TDRs); e) eliminating or revising zoning exemptions from parking requirements; and f) initiating parking restrictions and/or permit parking in adjacent residential neighborhoods. The report further notes that City staff is also releasing 174 additional permit spaces in parking garages over the month of March. Conflicts of Interest The following Council Members and the City Manager have potential conflicts of interest in one or more of the near-term actions presented in this report. Although these actions are presented in a single agenda item, they represent independent issues for Council consideration. Staff recommends the following recusals in an abundance of caution in light of the actions presented here, some of which are framed broadly due to the preliminary nature of the policy discussion. Staff will revisit and update the potential for conflicts each time an item comes before Council and key staff for consideration. Staff anticipates that the Council will consider a number of distinct matters relating to downtown parking and development in the coming months. As those matters become more defined, and in some cases focus on narrower geographic areas, specific neighborhoods or particular properties, the currently-recused Council Members and key staff may be eligible to participate. Mayor Scharff has an interest in real property at 616 University Ave, which is within 500 feet of the eastern edge of the Commercial Downtown District. Staff recommends that Mayor Scharff recuse himself from discussions of items (e) and (f). Vice Mayor Shepherd has an interest in real property at 550 Hamilton Ave, which is within 500 feet of the eastern edge of the Commercial Downtown District. Staff recommends that Vice Mayor Shepherd recuse herself from discussions of items (e) and (f). Council Member Holman has received income within the past twelve months from the Palo Alto History Museum, which may be impacted by item (d). Council Member Holman also has an interest in her residence, which is within 500 feet of a residential neighborhood adjacent to the Commercial Downtown District. Staff recommends that Council Member Holman recuse herself from discussions of items (d) and (f). City of Palo Alto Page 3 Council Member Berman has an interest in his residence, which is in a neighborhood adjacent to the Commercial Downtown District. Staff recommends that Council Member Berman recuse himself from discussions of item (f). City Manager Keene has an interest in his residence, which is within 500 feet of the eastern edge of the Commercial Downtown District. Staff recommends that City Manager Keene recuse himself from discussions of items (e) and (f). Background Downtown Palo Alto is a vibrant, pedestrian and transit-oriented mix of retail, restaurant, services, office and moderate density residential uses, surrounded by lower density residential neighborhoods to the north, south, and east. In the past two years, the success of downtown business and new development has presented challenges to nearby residential neighborhoods and, to some extent, to the business environment itself. Most of these impacts are related to parking and traffic, but the visual impacts and mix of uses downtown have also been of some concern. The University Avenue Caltrain station and Intermodal Center has also been studied to identify improvements that will allow the center to adequately serve increased ridership associated with future growth and changing mode splits from vehicles to trains and buses. Several efforts are underway to analyze various potential growth opportunities and impacts in or near downtown, including the Arts and Innovation District (27 University Avenue) site planning and transit center upgrade, the Downtown Development Cap Study, and ongoing parking and zoning analyses. The Downtown Development Cap Study Request for Proposal will be released before the end of March, and a separate Information item in the Council’s agenda packet outlines the background and scope of work for that study. Ongoing parking and zoning studies are discussed below. Parking Studies Transportation staff has conducted periodic parking inventories of public parking garages and lots, as well as street parking downtown and in residential neighborhoods over the past two Street) and WC (Cowper-Webster). Other garages and lots are nearly fully parked at those hours. Attachment A depicts current waiting list numbers for permits for the various lots and garages, and staff notes that the numbers have decreased considerably due to continued staff efforts to open additional permit spaces and the recent implementation of the City’s new permitting software. Attachment B provides a map that depicts the latest levels of saturation for parking on the streets, approximately from San Francisquito Creek to Embarcadero Road and from Alma Street to Middlefield. The map shows saturation rates less than 50%, 50-85%, and above 85% for each side of each block. Over the past two years, the degree of saturation City of Palo Alto Page 4 has progressively moved closer to Embarcadero to the south and to the creek on the north. While staff has not defined a specific parking “deficit,” these maps and trends do indicate extensive intrusion into neighborhoods that is being exacerbated by additional development. Staff expects to continue to monitor parking space occupancy at least twice per year. Parking Garage Analysis Staff has retained engineering consultant assistance to evaluate five (5) City parking lots for feasibility to construct parking structures on each. The five lots are: Lot D (Hamilton at Waverley), Lot E (Gilman at Bryant), Lot G (Gilman at Waverley), Lot P (High between Hamilton and University), and Lot U (Urban Lane). Each of these lots is being examined as to the potential number of parking spaces that could be constructed, constraints or obstacles to construction, and costs. Staff expects an interim report to Council in May. Zoning Evaluation Several zoning ordinance provisions related to parking are currently under review or will be for downtown. These include:  A moratorium on the use of the “1:1 FAR” parking exemption while the downtown studies are underway; staff notes that the two potential “exception” requests (135 Hamilton Avenue and 636 Waverley Avenue) are pending those applicants’ attempts to identify means to provide the necessary parking, thereby avoiding the need for exceptions;  Review of other parking exceptions, such as those related to transferable development rights (TDRs), as part of the Development Cap Study;  Evaluation of applying the ground floor (GF) retail overlay to Emerson Street between Hamilton Avenue and Forest Avenue (the PTC recommended approval on March 5 and the Council will consider the item in April); and  Evaluation of the treatment of nonconforming land uses and changes in uses with respect to parking requirements and impacts. More comprehensive analysis of parking ratios and the Development Cap are planned as part of the Downtown Development Cap Study. Development Project Status Downtown development, in particular office development, is highly desired by existing and new firms, most often those with a technology focus. As reported in the latest Downtown Monitoring Report (Attachment E), vacancy rates are below 2% for office uses and lease rates are in the $6 to $6.50 range, among the highest in the country. Many of the newer office City of Palo Alto Page 5 developments, however, have not provided parking to the level required by the zoning code, as exemptions are provided for transferable development rights and other provisions. Many approved or upcoming projects have potential to add to the square footage of office space downtown or to impact downtown or nearby parking or traffic: A. Approved and Under Construction but not Occupied  355 Alma Street (Lytton Gateway)  278 University Avenue  180 Hamilton Avenue (Casa Olga: hotel)  456 University Avenue (Varsity Theater office space)  564 University Avenue B. Approved but Not Yet Under Construction  668 Ramona Street (Pacific Art League)  135 Hamilton Avenue (Keenan) C. Pending or Preliminary Review, Not Approved  636 Waverley Avenue (Kleiman)  611/651 Cowper Street  537 Hamilton Avenue  240-248 Hamilton Avenue  261 Hamilton Avenue (University Arts)  456 University Avenue (Varsity Theater retail space)  500 University Avenue Attachment C provides a more thorough outline of the projects, proposed square footages, and estimates of unparked spaces, the summation of which is a potential 665 spaces for which parking is not currently available. The total increase in net square footage of non-residential square footage for projects on the list (but not included in the Downtown Monitoring Report) is just over 95,000 square feet, above the existing 223,000 square feet approved under the Downtown Development Cap and reflected in the Downtown Monitoring Report. Staff is also aware of projects in the formative stages that amount to approximately 13,500 square feet of potential additional office development, but which have not yet been submitted for entitlements (which would bring the total subject to the Development Cap to just over 330,000 City of Palo Alto Page 6 square feet). The list does not include residential use or uses that have converted to office from less intense retail or service uses. In addition, potential impacts are expected from other large projects in the area, each of which will require extensive environmental analysis, but which will also need to be considered in conjunction with other development impacts in and around downtown. These potential projects include 27 University Avenue, 395 Page Mill Road (Jay Paul), Page Mill/El Camino Real (VTA Lot), and projects under review in Menlo Park. Discussion Staff believes that the Development Cap Study will provide information relevant to existing and projected conditions and development scenarios, and the Request for Proposal for the Development Cap Study will be released later in March. Staff also proposes, however, the study and implementation of several near-term (1-6 months) measures to relieve some of the current parking impacts on neighborhoods, or at least to minimize further impacts from upcoming development. Near Term Parking Improvements (1-6 months) Staff believes that, given the extent of parking intrusion into neighborhoods around downtown and the need for additional downtown parking management, there are several measures available to help alleviate (or at least plan to alleviate) such impacts. A few of these are outlined below and staff requests Council direction, where necessary, to pursue these measures within the coming 1-6 months, working with the Planning and Transportation Commission and affected interests. Open Downtown Permit Spaces (Immediate): Staff is increasing permit sales at Lots S/L (Bryant Street) and WC (Cowper/Webster) by a total of 174 spaces by the end of March. This should further reduce the waiting lists for parking structures. No Council authorization is necessary for this action. Attendant Parking Trial (3 months): Staff will work with the Downtown Parking Assessment District representatives to explore a trial attendant parking trial, most likely in the parking garage in Lot R (High Street between Hamilton and University Avenues). Such a program could increase the capacity of the garage by another 20%, but would likely require an increase in permit fees to support the cost. City Staff TDM (6 months): Staff will present to Council a plan for a City employee incentive and transportation demand management (TDM) program designed to reduce City employee parking downtown, particularly in the City Hall garage, by 50-100 spaces, which would then be available for permit parking for others in downtown. City of Palo Alto Page 7 Consider Agreement for Development of Downtown Parking Garage at Lot P (3 months): Staff will bring to Council a proposal by Chop Keenan, owner of the 135 Hamilton Avenue property, for a public-private partnership for a new parking garage on surface Lot P on High Street between Hamilton Avenue and University Avenue. The proposal would provide a mix of spaces devoted to the 135 Hamilton Avenue project, but with a net increase in City spaces at a cost per parking space substantially less than for a City-constructed garage and in a timeframe sooner than the City could build such a facility. Mr. Keenan has provided a brief outline (Attachment D) of key terms for consideration, but understands that the City will require a thorough review process and deliberations as to the viability and desirability of pursuing such an agreement. The agreement, if eventually approved, would also serve to eliminate a need for a parking exception for the 135 Hamilton project. Staff will also present a status report at that time regarding the ongoing study of parking garage opportunities and constraints. Consider Restriction on Transfer of Development Rights: Staff will also evaluate whether to restrict the creation and/or use of TDRs, which allow added square footage without requiring parking. Eliminate or Modify Downtown Parking Exemptions (3-6 months): Staff will bring forward to staff and Planning and Transportation Commission proposals to further minimize the potential for use of parking exemptions. This will include permanent elimination of the “1:1 FAR” exemption and another that allows 200 square feet exempt from parking on many sites. Residential Parking Restrictions (6 months): Staff will work with the affected neighborhoods (and business interests) to identify options to implement parking restrictions in Downtown residential areas to relieve intrusion from downtown employees and others. Some options may include time restrictions (e.g., 4-hour parking), parking on dedicated sides of the street for residents, whether to allow limited employee parking with higher permit costs, etc. Staff will present options to Council for adoption if supported by residents, and assuring that the permit process is cost-neutral to the City. Staff believes that any or all of these efforts could proceed ahead of the Downtown Development Cap Study to provide near-term relief for parking concerns. Next Steps The following next steps are anticipated relative to Downtown parking, traffic, zoning, and development issues:  Release a minimum of 174 additional permit parking spaces in garage lots S/L (Bryant Street) and WC (Cowper/Webster) by the end of March.  Release Development Cap Study Request for Proposal (RFP) by end of March.  Return to Council on April 15 with a proposed study plan process for the Arts and Innovation District (27 University Avenue). City of Palo Alto Page 8  Present to Council an overview of the ongoing study of parking garage opportunities and constraints by May 15.  Return with specifics of an outline for the Lot P garage by May 15.  Return to Council with a proposed outline of Downtown Stakeholder Task Force by May 15, and finalize the Task Force by July 1.  Initiate a trial attendant parking program in at least one garage by July 1.  Develop City staff incentives and TDM to free up parking spaces at City Hall by September 1.  Develop parking restrictions or permit parking provisions for presentation to Council by September 1.  Develop zoning ordinance amendments timed for Planning and Transportation Commission review and Council action by October 1. Staff expects that the first phase of the Downtown Development Cap Study (data-gathering) will be underway by June 1. Resource Impact Funding for most of the proposed near-term improvements is available through current staffing and budgets, but additional funding may be required for implementation of the attendant parking trial and residential permit parking program. The former would likely require some increase in parking permit fees, and the latter will be funded through a combination of permit fees and funding available from the Lytton Gateway Project. Policy Implications The 1986 Downtown Study included a 12-point Public Parking Program that is outlined in the Comprehensive Plan. Many of these measures have been implemented since the 1986 study, but nonetheless require additional attention as downtown development intensifies. Environmental Review Environmental review is not required in order for the Council to review at this time. All proposed projects and policy changes, however, will need to be fully reviewed per the provisions of the California Environmental Quality Act (CEQA). The exact type of review will not be determined until the specific changes or projects are proposed and associated impacts are identified. Attachments:  Attachment A: Wait List for Downtown Parking Permits, March 2013 (PDF) City of Palo Alto Page 9  Attachment B: Parking on Neighborhood Streets, November 2012 (PDF)  Attachment C: Pending Project Parking Impacts, March 2013 (PDF)  Attachment D: Proposed Lot P Public/Private Parking Structure, Letter from Chop Keenan, March 6, 2013 (PDF)  Attachment E: March 11, 2013 Downtown Monitoring Report to Council (PDF)  Attachment F: November 13, 2012 Council Action Minutes (PDF) Downtown Parking Space and Permit Inventory Last Update: 3-12-2013 Letter Name Hourly Permit Total Q Alma/High (North)-134 134 205 245 0 R Alma/High (South)77 134 211 200 215 56 S Bryant St 381 307 688 575 615 4 WC Cowper/Webster 201 388 589 630 700 0 CC City Hall 187 519 706 820 820 46 B Ramona/University 63 -63 --- 800 800 High St 10 53 63 66 75 54 Total No. Parking Spaces:932 1522 2454 Increase:174 Letter Name Hourly Permit Total O Emerson/High 78 -78 --- A Emerson/Lytton 68 -68 --- C Ramona/Lytton 50 -50 --- F Florence/Lytton 46 -46 --- H Cowper/Waverly 90 -90 --- D Hamilton/Waverly 86 -86 --- E/G Gilman St -87 87 130 140 1 P High/Hamilton 51 -51 --- KT Lytton/Kipling-Waverly 40 67 107 96 110 5 N Emerson/Ramona 48 -48 --- X Sheridan Hotel -36 36 55 65 5 Total No. Parking Spaces:557 190 747 Increase:34 Permit Wait List (as of 3-12-13) Proposed Max # Permits Spring 2013 Stepped Release Permit Wait List (as of 2-27-13) Parking Garages Parking Space Allocations Ex. Max # Permit Proposed Max # Permits Spring 2013 Stepped Release Parking Lots Parking Space Allocations Ex. Max # Permit City of Palo Alto Downtown Parking Survey 12:00PM -2:00PM November 14,2012 Scale: None tIWMIp-101" 4YIJp.1J3% ...., ...... IYMOp-en, 4Y~.11O'11io 7Y11p-17% IYI8p-ton. :::c cO· :::r g,? IYMOp-"" 1TYM",-M'II. ..,...,-ton. 4V18p-"" tlYMfp-tOO"ll. m 4~ ~ Cil i ; ~ i TYlTp-100'11. 3V1Ip-ST% 1V1lIp-100,," ~ ... , .... OYI8p-n ~."':- .. <1'! ..... ,.<"" C G ~ ~ Poe St ~ ! 2VM ... ·1WO IVMIp-447I Hawthorne Ave 1IVMlp·100'll. 17YN",,-..... B~:.,!Ct EveretlAve OJ =~ ~ 3- j g,? 1f'mtD."." 11VMIp-100'11i0 Lytton Ave 11VMIp-"" 1Y1Ip-1iO% rvnp-31'11. 17Y1ZOp_1Ho IYMOp-"" TYl8p.17"JI. IYMIp-1O'A, TYf7p-100'!1i0 7YUp-17&% § ~ S~, ~! (_.J, I_ ... J ,~.j ,G~ L.J 7YMOD-"'" 1JV11",-1'" w.-,.,,. 4Y1Ip-1O% IYMOp-en, ,~ .. ''''' .. - , ~ ,... "--'-' --. ....... ........ J ¥ i ( .. p... '-'-' 1V1Ip-11Q'11i, 5Y1Ip-"" 4Yl4p.''''' 11YM1p-1O"- TYnp., ..... 1Ynp·' ..... IV,..·' ..... j , j WlTp-en. TYnp-100"11. wrtp-,"" 1V1Ip-100'11i0 m 43 ~CD I'Cil '0 '::J g,? IYtep., ..... 1YIIp_11Q'11i, TYf1p·11O% ... -"": "10'­.............. tOYMIp-5K 11V110p -11O'11io 1Y1Ip-100"J1. IVASp·ton. tJVMZp. ton. 1IYMSp-'en. IIVl21p·H'II. 1TYM7p-100"J1. TYMIp-5!"Io 15YI21p-11'11. 1'Mtlp· ..... 11YI21p-T1" TYtap .... ~~" .. -! I w:;: ct ! '::=====:: ~"q. $"O~N j ! --.:_! ,. Melville Av ., ~ ... -..• ~ l> 3" Dl g,? Kellogg Ave Churchill Ave 1IVM ... ·M'II. ~ ~ Do ~ ~ 5 Hamilton Ave 11VMIp-100'11i0 1IVMIp·....,. Forest Ave 1OYI10p·' ..... t5YM ... ·~ rvnp·114"Ao 1WIp-"" , .. 7Y/11p-"" 1IYMllp.100" IYM7'p-4T"JI, 11Y1Z2p-4S'II. mtlp-1li"11o IVl21p·3I"II. 7Y/17p .... '" 7Yl15p-<4ft Legend -0%·49% Parking Occupancy -50%·84% Parking Occupancy -85% ·100%+ Parking Occupancy () 0 4 :e~ "C~ CD' ... , g,? 1IVMIp .,,", 1IV/1Ip-1tft, 7Y1Ip-77'I. 11Y/11p ...... 17YM7p.100"J1. 11VI1Op -11" 12YM1~ .101% HomerSt 12YM4~·1R. 12Y'122p_154'11. 11Y112p-en, n 1OYM3p·7ft, ~ ~ ~ ! CD ~ , -.. i g,?Addison Ave· 14V117p·18 Lincoln Ave IYM7p·~ Kingsley Av TYM7p-41'11. TYI2Ip-M'"JI, MelvilieAv IVM7p_O% ZVIlp-Zl" tvtep-11" tvl7P'"14'11. WlTP-1R. University Ave 1V1Ip-100% rv,.,,·,"'" 2Y12P-,"" i ! 1V1Ip-100"J1, JVtMp-Z1'11. 7Y12Ip.an, 11Y117p· ..... 1JYMISp-"" ;Channing Ave 1IYM4p-T1'11. 1JVMSp-.1'11. 11VM.p-5nIo 7Y1ZOp-l5" 1Vtep-11'11. ....... ..,. lWf1p.17"JI. OYtep ..... 1V1Ip_'" j , PROJECT ADDRESS ZONING TOTAL NON-OCCUPIED NON- RESIDENTIAL AREA (SF) PARKING REQUIRED ON-SITE PARKING SPACES PARKING IMPACT* APPROVED (UNDER CONSTRUCTION, NOT OCCUPIED) 564 University CDCP 7,917 32 0 32 278 University CDCGFP 18,206 73 0 73 180 Hamilton (1) CDCP 86 hotel rooms plus 1,300 restaurant 91 0 91 355 Alma CDCP 49,863 166 144 22 456 University (office)(2)CDCFP 24,961 100 0 100 APPROVED (NOT YET UNDER CONSTRUCTION) 135 Hamilton CD-C(P)19,960 80 19 61 668 Ramona (3)CDCP 12,546 50 0 50 SUBMITTED, PENDING REVIEW 611 Cowper/651 Cowper CD-C (P)27,984 112 52 60 537 Hamilton CD-C (P)9,979 38 18 20 240-248 Hamilton CD-C (GF) (P)11,527 46 0 46 456 University (retail)(2)CD-C(GF)(P)14,140 57 0 57 261 Hamilton CD-C(GF)(P)10,000 40 7 33 636 Waverley CD-C(P)5,270 18 18 0 500 University CD-C(GC)(P)10,709 43 23 20 TOTAL 665 *Note: Parking impact does not imply non-compliance with parking requirements. All projects would comply with code requirements, based on parking district assessments, reductions, exceptions, and/or on-site spaces provided. (1) Casa Olga (2) Varsity Theater (3) Pacific Art League KEENAN LAND VOMPANY March 06, 2013 Mr. Curtis Williams Director of Planning and Community Environment City of Pa 10 Alto 250 Hamilton Avenue Palo Alto, CA 94301 Re: Proposed Lot P Public/Private Parking Structure Dear Curtis: I would like to propose a public/private partnership for the development of a parking structure on Lot P. This development would provide an on-site capacity of 145 self-park or 194 stacked/tandem spaces; increasing the existing day-time capacity of 51 stalls by 60% (31 stalls) and night-time capacity by 184 % (94 stalls). Project development is based on the following terms and conditions: 1. City contributes $ 1M toward the construction costs. 2. 135 Hamilton (Hamilton & High, LLC or other Keenan entity) shall contribute the balance of all costs (hard and soft) estimated to be $ 7.989M. 3. City to sell 135 Hamilton up to 7,500 square feet of its TOR's at $ 90 per square foot. 4. 135 Hamilton shall contract with the general contractor and oversee construction through completion. 5. 135 Hamilton shall have an appurtenant exclusive parking easement in perpetuity for Floors 4 and 5 (63 self-park spaces or 93 stacked spaces), between the hours of 6:00 AM to 6:00 PM Monday through Friday. After 6:00 PM on weekdays and all hours on weekends Floors 4 and 5 are open to the public. This easement is to provide a stack/tandem parking operation serving the commercial occupants at 135 Hamilton Avenue. A stack/tandem parking operation allows users to self-park until the zone is full. Subsequent users park in the drive aisles and leave their keys with an attendant. 6. The parking structure will be made of natural concrete with screened open areas and wall sections in context with the surrounding neighborhood. The structure will be inviting and brightly illuminated with all interior walls and ceilings painted white. The first floor level will feature floor-to-floor dimensions ranging from a minimum of 11' to a maximum of 16' to allow garbage/refuse trucks to service adjacent buildings behind the structure. 7. The City shall be responsible for the general operation of the parking structure, including all maintenance, repairs and replacements. 135 Hamilton shall pay its pro-rata share of operating expenses including water, electricity, sweeping, elevator maintenance, general maintenance, and insurance (including earthquake estimated to be $ 10,OOO/yr.) for Floors 4 and 5. 135 Hamilton's share of operating expenses shall not include trash pick-up, city administration or police patrol. 700 EMERSON STREET. PALO ALTO, CALIFORNIA 94301 • TELEPHONE (650) 614-6246 • TELECOPY (650) 326-2920 8. In the event this parking structure proposal is approved by the City Council, then the subterranean parking at 135 Hamilton shall not be constructed other than four on-grade parking spaces to serve the residential units where the subterranean ramp was to be built. 9. Regarding Lot P, the city shall waive all city fees, surcharges, costs, taxes, levies and assessme nts. ven:irs , f~ ~~ Chop Keenan . ! City of Palo Alto (ID # 3462) City Council Informational Report Report Type: Informational Report Meeting Date: 3/11/2013 March 11, 2013 Page 1 of 9 (ID # 3462) Title: Downtown Monitoring Report 2011-2012 Subject: Downtown Monitoring Report 2011-2012 From: City Manager Lead Department: Planning and Community Environment Recommendation This is an informational report and no Council action is required. Executive Summary The annual Commercial Downtown (CD) Monitoring Report tracks total non-residential growth in the commercial downtown area (CD-C and CD-C(GF)(P)zones) and office and retail vacancy rates in CD-C and CD-C (GF)(P) zones. Through mid-December of 2012, there was a 2.8 percent vacancy rate within the Ground Floor Overlay District and a 1.6 percent overall vacancy rate in the Commercial Downtown (CD) zoning district. In this monitoring cycle, approximately 49,860 square feet of space was approved or added to the total downtown non-residential square footage. An additional 11,790 square feet of new non-residential development can be accommodated before the re-evaluation limit of 235,000 square feet growth limit is reached. Background Annual monitoring of available space in Commercial Downtown (CD) zoning area was established in 1998 by Comprehensive Plan Programs L-8 and L-9. These programs require reporting of non-residential development activity and trends within the CD zone district. Staff regularly has tracked vacancy rates, changes in floor area and parking in the CD district resulting from approved development to comply with the Comprehensive Plan programs and to determine the ground floor vacancy rate in the CD zone district. The zoning code included an exception process to allow office development on the first floor if the ground floor vacancy rate exceeds 5%. In 2009, the City Council adopted zoning ordinance amendments to enhance protection of retail uses in downtown commercial districts to ensure that retail uses are retained and viability enhanced during the economic downturn and beyond. The ordinance also eliminated an exception process triggered when the GF vacancy rate is found to be greater than 5% during the annual monitoring. A map of the districts subject to the amendments was included in the Council report (CMR 20:09), available on the City’s website. March 11, 2013 Page 2 of 9 (ID # 3462) Staff completed field visits for this 2011-2012 monitoring period in mid-December 2012. Telephone interviews and email exchanges with local real estate leasing agents were also compiled at the same time to determine current vacancy rates and prevailing rents. This report also includes cumulative data on developments in the Commercial Downtown (CD) zone from January 1987 through August 31, 2012 and has specific data on vacancy information and rental rates through December 2012. Discussion The economic conditions of the Palo Alto downtown area are continuing to improve since last year. Currently there is a 2.8 percent vacancy within the Ground Floor Overlay District and a 1.6 percent overall vacancy in the Commercial Downtown (CD) zoning district. This is a noticeable drop of 2 percent vacancy in the Ground Floor Overlay District from last year. This number is close to the 2006-2007 period vacancy rate, before the economic downturn. The retail rental rates ranged from $3.00 to $6.50 per square foot based on the location, and office rental rates ranged from $4.00 to $7.00 per square foot during this reporting period. Office rental rates have increased marginally from last year and retail rental rates have remained steady through the 2011-2012 monitoring period. The following table shows the approximate total vacant square foot and percentage of vacancy from 2006. TABLE 1: Total Vacancy in CD-C & CD-C (GF) (P) Zones in Downtown Palo Alto Year Total CD-C Vacant (SQFT) % of CD-C Vacancy Total CD-C (GF) (P) Vacant (SQFT) % of CD-C (GF) (P) Vacancy 2006-2007 88,368 2.63 18,330 2.94 2007-2008 120,004 3.60 26,294 4.21 2008-2009 212,189 6.39 56,109 8.99 2009-2010 85,271 2.56 37,888 6.91 2010-2011 66,226 2.0 26, 290 4.8 2011-2012 52,368 1.6 15,550 2.8 Source: City of Palo Alto’s Planning Department. Non-Residential Development Activity The 1986 Downtown Study (and Comprehensive Plan and Zoning Ordinance) incorporated a growth limit of 350,000 square feet of additional floor area above the total floor area existing in 1986, and provided for a re-evaluation of the CD regulations when net new development reaches 235,000 square feet. Since 1986, a total of 223,210 square feet of non-residential floor March 11, 2013 Page 3 of 9 (ID # 3462) area has been added in the Downtown CD-C zoned area. In the past two monitoring cycles from 2009-2011, approximately 34,650 square feet of net new commercial floor area was added with a few major contributing projects such as 524 Hamilton Avenue and 265 Lytton Avenue. In this current cycle, 2011-2012, approximately 49,860 square feet of net new commercial floor area has been added through one major project, 335-355 Alma Street. Based on this recent monitoring, an additional 11,790 square feet of new non-residential development remains for development before the re-evaluation limit of 235,000 square feet growth limit is reached. Staff notes that the 135 Hamilton Avenue project was recently approved (though parking issues haven’t been resolved), which would increase the total by approximately 20,000 square feet, to about 245,000 square feet, in excess of the re-evaluation threshold. Staff has developed a scope of work for the new Development Cap Study and will initiate work in the next couple of months. TABLE 2: Total Non-Residential SQFT Added in Downtown Palo Alto since 2006. Year Total Non-Residential SQFT Added in CD-C Total Non-Residential SQFT Left to Reach the Re-evaluation Limit* 2006-2007 195 129,055 2007-2008 7,480 121,575 2008-2009 25,280 96, 295 2009-2010 21,150 75, 145 2010-2011 13,500 61,645 2011-2012 49,860* 11,790 Source: City of Palo Alto’s Planning Department *Projects filed as of August 2012. Below is a list of significant projects in the downtown CD-C zone area that added more than 5,000 square feet since 2006.  325 Lytton Ave--17,515 square feet  310 University Ave--7,481 square feet  265 Lytton Ave—21,151 square feet  524 Hamilton Avenue—9,345 square feet  355 Alma Street—49,860 square feet Demonstrating Special Public Benefits The Downtown Study reserved 100,000 square feet of the 350,000 square foot growth limit to be used for projects demonstrating special public benefits. Since 1986, eleven projects in the March 11, 2013 Page 4 of 9 (ID # 3462) Downtown area have been developed under the Planned Community zoning that requires a finding of public benefit. Six of the projects exceeded the non-residential floor area that would otherwise be allowed under zoning by a total of 66,915 square feet. The total changes in square footage of these projects are shown in the fourth column of Attachment C. The remaining five projects were mixed-use projects that did not exceed allowable non-residential floor areas. All of the projects either provided parking or paid a fee in-lieu of providing parking. Only one project; 355 Alma Street, in this current cycle added square feet demonstrating public benefit and provided in-lieu fees for parking. Projects Qualifying for Seismic, Historic or Minor Expansion Exemptions The Downtown Study designated 75,000 square feet of the 350,000 square foot cap for projects that qualify for seismic, historic or minor expansion exemptions in order to encourage these upgrades. Since 1986, 93,931 square feet have been added in this category. Two projects, 524 Hamilton Avenue and 668 Ramona, used close to 5000 square feet of Transfer Development Rights (TDR) square footage. This year’s only approved project, 335-355 Alma Street, did not add any square feet in this category. These projects are shown in the fifth column of Attachment C. Parking Inventory The 1986 Downtown Study set performance measures that established that new commercial development in the Downtown should not increase the total parking deficit beyond that was existing or approved through May 1986, or 1,601 spaces. This base “deficit” number was determined by counting the number of commercially bound vehicles (employees, customers, etc.) parked in residential neighborhoods. Increases or reductions to the deficit are determined by comparing the total number of commercial parking spaces constructed in the downtown area with the amount of new commercial square footage constructed. In general, for every 250 square feet of commercial development, an additional parking space should be constructed. There are certain projects that qualify for exemptions to parking requirements, which add to the deficit. Conversely, parking improvements that are independent of development reduce the deficit. As noted above, certain projects are exempt from providing parking or a portion thereof, which increases the deficit. The City tracks these exemptions, and at the end of the 2003 monitoring period, the City determined a re-evaluation of the parking exemption regulations would be undertaken when the unmet parking demand resulting from exemptions reaches a cumulative 450 spaces. Currently, the unmet parking demand resulting from exemptions is 350 parking spaces. In 2003, the City opened two new parking structures located at 528 High Street and 445 Bryant Street. This added a total of 713 net new parking spaces. Other improvements that have occurred since 1986 include a 2-floor addition to the Cowper/Webster Garage and significant restriping of on-street parking spaces by the City’s Transportation Division. Per the methodology prescribed in the 1986 downtown study, the total cumulative parking deficit has been “reduced” from 1,601 in 1986 to 901 in 2012. Attachment D is a chart that details the CD March 11, 2013 Page 5 of 9 (ID # 3462) (Commercial Downtown) parking deficit. Although defined as a deficit reduction, there is a general understanding that commercial parking intrusion into residential neighborhoods has increased since that time. Staff believes that the parking intrusion is not accurately depicted in Attachment D, as it likely doesn’t include factors such as a) increased employee density downtown, b) conversions of existing retail or underused office space to more intensive office uses, c) conversions of prior residential hotel uses to true hotel uses, and d) parking in neighborhoods from areas other than the downtown business, such as for Caltrain commuters, Palo Alto Medical Foundation, and/or Stanford. A better estimate of parking intrusion will be developed as part of the Downtown Development Cap Study. Recently, staff has been directed by City Council to undertake a site and feasibility study to evaluate the possibility of construction of additional public parking structures in and around the Downtown area, and to consider expansion of existing parking capacity through the use of attendant parking at existing structures. In addition, City Council directed staff to conduct a re- evaluation of the 1986 Downtown Development Cap Study. This study examined parking, traffic and land use conditions of the Downtown area and restricting future non-residential development to a total of 350,000 square feet in the Downtown CD-C zone area. The proposed re-evaluation study will also include analysis of existing and projected traffic, parking capacity, and the impacts from application of parking exemptions under transfer of development rights and other code provisions. Vacancy Rate for Ground Floor (GF) Combining District The Ground Floor Combining District (GF) was created to encourage active pedestrian uses in the Downtown area such as retail, eating and drinking and personal services. There is approximately 548,675 square feet of total Ground Floor area in the CD-C (GF) (P) zoning district after the adoption of the amended ordinance in December 2009. Staff surveyed downtown CD-C (GF) (P) zoned areas to assess vacancy in the second week of December 2012. Staff also consulted local real-estate agents and other databases and compiled a list of only five properties in the CD-C (GF) (P) area, which met the requirements for vacancy. The total vacancy amounted to 15,550 square feet. TABLE 3: Vacant Property Listings for Only Ground Floor (GF) Spaces in CD-C (GF) (P) Combining District. (As of December 14, 2012) Address Vacant Square Feet 575 High 4,437 174 University 2,300 March 11, 2013 Page 6 of 9 (ID # 3462) 355 University 3,694 429-447 University 3,300 436-440 University 1,818 Source: City of Palo Alto’s Planning Department This results in a GF vacancy rate of approximately 2.8 percent this year; 2 percent less than previous year’s vacancy rate. FIGURE1. Vacancy Rates in CD-C and CD-C (GF)(P) Zones Since 2006 Source: City of Palo Alto’s Planning Department Vacancy Rate for Entire CD District The entire CD area contains approximately 3,850,000 gross square feet of floor area, including approximately 330,000 square feet within the SOFA CAP Phase 2 area. About 525,000 square March 11, 2013 Page 7 of 9 (ID # 3462) feet is used for religious or residential purposes or is vacant and not available for occupancy. Thus, the net square footage of available commercial space is approximately 3,325,000 square feet. Staff conducted a field survey in mid-December 2012 and communicated with local real estate agents during same time to assess overall vacancies in the downtown area. In this monitoring cycle there was a total vacancy of 52,368 square feet. This vacancy equals a rate of 1.6 percent compared to 2.0 percent in last year’s monitoring report. The overall CD-C vacancy rate has reduced considerably since the 2008-2009 period, close to a drop of 5 percent. Table 4 was compiled based on staff conducted fieldwork, researches of different real estate websites and responses received from local downtown real estate agents. TABLE 4: Vacant Property Listings for Rest of Commercial Downtown (CD). (As of December 14, 2012)) Includes Upper Floor Office Space in CD-C (GF) (P) Combining District and all floors of CD-C (P) District Address Zoning District Vacant Square Feet 526 Bryant CD-C (GF)(P) 5,753 542 Emerson CD-C(GF) (P) 1,850 385 Forest CD-C (GF)(P) 2,038 201-225 Hamilton CD-C (GF)(P) 8,660 205 Hamilton CD-C (GF)(P) 9,857 437 Lytton CD-C (P) 1,204 550 Lytton CD-C (P) 2,662 355 University CD-C (GF)(P) 4,795 CD – Commercial Downtown, (C) – Commercial, GF – Ground Floor Combining District, P - Pedestrian Overlay March 11, 2013 Page 8 of 9 (ID # 3462) Trends in Use Composition The primary observation of change in the use composition of Downtown was, in this cycle about 48,360 square feet of new non-residential use was added through the 355 Alma Street project. Since the enactment of new CD zoning regulations in 1986, the total floor area devoted to higher-intensity commercial uses such as office, retail, eating/ drinking and housing has increased, while the total floor area in lower-intensity commercial uses like manufacturing, warehousing and business services has decreased (see Attachment E). Retail Rents Retail rental rates have marginally increased since last year’s monitoring report. According to the data gathered during December 2012 staff survey of commercial real estate agents offering properties for lease in Downtown, rents for retail space are generally ranging from $3.00 to $6.00 per square foot triple net (i.e. rent plus tenant assumption of insurance, janitorial services and taxes). The lower end of this range is generally for spaces in older buildings and away from University Avenue. Retail rental rates on core downtown University Avenue goes up to $5.00 to $6.50. For some vacant properties outside the downtown core, rental rates are lower and listed as negotiable. Office Rents Based on the information gathered from commercial real estate agents listing properties for lease in Downtown, rents for Class A Downtown office space (i.e. newer and/or larger buildings on University Avenue and Lytton Avenues) and Class B office space (i.e. older and/or smaller buildings further from University Avenue) are ranging from $3.75 to $7.00 per square foot triple net, more or less similar to last year’s monitoring cycle. Timeline This is an annual report. Resource Impact This report has no impact on resources, though the implications of reduced vacancy rates have positive impacts on the City’s property and sales tax receipts. Policy Implications This report on the Commercial Downtown (CD) zoning area is mandated by Comprehensive Plan Programs L-8 and L-9 and by the Downtown Study approved by the City Council on July 14, 1986. Environmental Review This is an informational report only and is exempted from CEQA review. March 11, 2013 Page 9 of 9 (ID # 3462) Courtesy Copies: Planning and Transportation Commission Architectural Review Board Palo Alto Chamber of Commerce Palo Alto Board of Realtors Palo Alto Downtown Business & Professional Association Downtown North Neighborhood Association Professorville Neighborhood University Park Neighborhood Association Attachments:  Attachment A: Downtown Study Summary (PDF)  Attachment B: Map of Downtown CD(C) District (PDF)  Attachment C: Non-Residential Square Footage (PDF)  Attachment D: Parking Changes (PDF)  Attachment E: Changes by Land Use Category (PDF) ATTACHMENT A DOWNTOWN STUDY RESULTS SUMMARY (July 1986) The following are the primary measures adopted as a result of the study: 1. A new Commercial Downtown (CD) zoning district, including three sub districts (CD-C, CD-S and CD-N), was created and applied to most of the Downtown area previously zoned Community Commercial (CC) or Service Commercial (CS). The basic provisions of the CD district include floor area ratios (FARs) that are more restrictive than in the previous CC and CS zones, limits to project size and to the overall amount of future development, and special development regulations for sites adjacent to residential zones. 2. Growth limits were applied to the CD district restricting future development to a total of 350,000 square feet beyond what was existing or approved in May 1986 and providing for a re-evaluation of the CD regulations when new development reaches 235,000 square feet. In addition, 100,000 square feet of the total new floor area was reserved for projects demonstrating special public benefits and 75,000 square feet for projects which qualify for seismic, historic or minor expansion exemptions. 3. Exemptions to the floor area ratio restrictions of the CD zone were established for certain building expansions involving historic structures, seismic rehabilitation, provision of required handicapped access, or one-time additions of 200 square feet or less. 4. New parking regulations were established for the University Avenue Parking Assessment District that requires new non- residential development to provide parking at a rate of one space per 250 square feet of floor area. Exemptions to this requirement are provided for certain increases in floor area related to provision of handicapped access, seismic or historic rehabilitation, one-time minor additions (200 square feet or less) and development of vacant land previously assessed for parking. The regulations also permit, in certain instances, off-site parking and parking fees in lieu of on-site parking. 5. Performance measures were established that specify that new development in the Downtown should not increase the total parking deficit beyond that expected from development that was existing or approved through May, 1986 (1600 spaces) and that call for re-evaluation of the parking exemption regulations when the unmet parking demand, resulting from exemptions, reaches one half (225 parking spaces) of the minimum 450 parking spaces deemed necessary for construction of a new public parking structure. Staff was directed to monitor the parking deficit. 6. A new Ground Floor (GF) Combining District was created and applied to the area along University Avenue and portions of the major side streets between Lytton and Hamilton Avenues, in order to restrict the amount of ground floor area devoted to uses other than retail, eating and drinking or personal service. 7. Staff was directed to monitor the Downtown area in terms of development activity, vacancy rates, sales tax revenues, and commercial lease rates to facilitate evaluation of the effectiveness of the new regulations. 8. Staff was directed to undertake a site and feasibility study to evaluate an additional public parking structure elsewhere in the Downtown, to consider development of a parking facility on public lots S, L and F, and to explore the possibility of leasing or purchasing privately-owned vacant lots suitable as parking structure sites. 9. Policies and regulations were adopted which encourage Planned Community (PC) zoning for parking structures and limit underground parking to two levels below grade, unless there is proof that regular pumping of subsurface water will not be necessary. 10. A Twelve-Point Parking Program was adopted to increase the efficiency of existing parking. 11. Traffic policies were adopted which prohibit new traffic signals on portions of Alma Street and Middlefield Road, and prohibit a direct connection from Sand Hill Road to Palo Alto/Alma Street. In addition, new signs were approved directing through traffic off of University Avenue and onto Hamilton and Lytton Avenues. 12. Staff and the Architectural Review Board (ARB) were directed to consider the possibility of an Urban Design Plan for Downtown and to develop design guidelines for commercial structures in neighborhood transition areas and for driveways which cross pedestrian walkways. 13. A temporary Design and Amenities Committee was created and charged with developing an incentive program (including FAR increases of up to 1.5) to encourage private development to provide a variety of public amenities in the Downtown area. 14. Staff was directed to study possible restrictions on the splitting and merging of parcels as well as the establishment of minimum lot sizes in the new CD district. COMMERCIAL DOWNTOWN (CD) ZONE DISTRICT MAP ATTACHMENT B ~ ;;9 -, o • o • il ® i = !i 0, , ., : Page 1 ATTACHMENT C CD NON-RESIDENTIAL CHANGE IN SQUARE FOOTAGE 09/01/86 TO 08/31/12 Project Address Zoning Date Approved Public Benefit Bonus Non Residential Square Footage Seismic, Historic, or Minor Bonus Square Footage Net change in non-Residential Floor Area 520 Ramona Street A CDCGFP 11/20/84 - 400 +400 220 University Avenue CDCGFP 2/5/87 - 65 +65 151 Homer Avenue CDSP 3/17/88 - - -9,750 314 Lytton Avenue CDCP 5/5/88 - - -713 247-275 Alma Street CDNP 8/4/88 - - +1,150 700 Emerson Street CDSP 9/15/88 - - +4,000 431 Florence Street CDCP 9/15/88 - 2,500 +2,500 156 University Avenue CDCGFP 12/15/88 - 4,958 +4,958 401 Florence Street CDCP 3/2/89 - 2,407 +2,407 619 Cowper Street CDCP 5/6/89 - - +2,208 250 University Avenue PC-3872 5/15/89 11,000B 300 +20,300 550 University Avenue CDCP 6/1/89 - - -371 Page 2 Project Address Zoning Date Approved Public Benefit Bonus Non Residential Square Footage Seismic, Historic, or Minor Bonus Square Footage Net change in non-Residential Floor Area 529 Bryant Street PC-3974 5/3/90 2,491C 2,491 +2,491 305 Lytton Avenue CDCP 9/28/90 - 200 +200 550 Lytton AvenueDE CDCP 10/22/90 - - +4,845 531 Cowper Street PC-4052 5/21/91 9,000 475 +9,475 540 Bryant Street CDCGFP 3/24/92 - 404 +404 530/534 Bryant Street CDCGFP 4/15/93 - 432 +432 555 Waverley Street/425 Hamilton AvenueE CDCP 9/21/93 - - +2,064 201 University Avenue CDCGFP 11/18/93 - 2,450 +2,450 Page 3 Project Address Zoning Date Approved Public Benefit Bonus Non Residential Square Footage Seismic, Historic, or Minor Bonus Square Footage Net change in non/Residential Floor Area 518 Bryant Street CDCGFP 3/3/94 - 180 +180 245 Lytton Avenue CDCP 7/21/94 - - -21,320 400 Emerson StreetEF PC-4238 9/19/94 - 200 +4,715 443 Emerson Street CDCGFP 1/5/95 - 26 +26 420 Emerson Street CDCP 3/16/95 - 125 +125 340 University Avenue CDCGFP 4/6/95 - - -402 281 University Avenue CDCGFP 4/20/95 - - -2,500 456 University Avenue CDCGFP 5/18/95 - 7,486 +7,486 536 Ramona Street CDCGFP 7/11/95 - 134 +134 725/753 Alma Street PC-4283 7/17/95 - - -1,038 552 Emerson Street CDCGFP 7/18/95 - 177 +177 483 University Avenue G PC-4296 10/2/95 3,467C 2,789 +7,289 424 University Avenue CDCGFP 9/21/95 - 2,803 +2,803 Page 4 Project Address Zoning Date Approved Public Benefit Bonus Non Residential Square Footage Seismic, Historic, or Minor Bonus Square Footage Net change in non/Residential Floor Area 901/909 Alma Street E,F PC-4389 8/1/96 - - +4,425 171 University Avenue CD-C(GF)(P) 9/19/96 - 1,853 +1,853 401 High Street CD-C(P) 10/3/96 - 350 +350 430 Kipling Street D,H CD-C(P) 10/22/96 - 200 +1,412 460-476 University Avenue CD-C(GF)(P) 3/20/97 - 1,775 +1,775 400 Emerson Street D PC-4238 3/21/97 - - +2,227 275 Alma Street CD-N(P) 7/8/97 - 200 +3,207 390 Lytton Avenue PC-4436 7/14/97 8,420C 689 +17,815 411 High Street H CDCP 12/18/97 - 2,771 +2,771 530 Ramona CDCGFP 05/20/99 - 2852 +2852 705 Alma St CDSP 09/21/99 - 2814 +2814 200 Hamilton Ave CDCP 10/21/99 - 10913 +10913 550 Lytton Ave CDCP 08/11/00 - - +93 Page 5 Project Address Zoning Date Approved Public Benefit Bonus Non Residential Square Footage Seismic, Historic, or Minor Bonus Square Footage Net change in Non Residential Floor Area 437 Kipling St CDCGFP 02/01/01 - - +945 701 Emerson St CDSP 05/29/01 - - +434 723 Emerson St CDSP 05/29/01 - - +400 880 - 884 Emerson St CDSP 05/29/01 - - +312 539 Alma St CDCGFP 10/23/01 - 2,500 +2,500 270 University Ave CDCGFP 11/01/01 - 2,642 +2,642 901 High St. E, F CDSP 12/12/02 - - +12,063 800 High St. I PC-4779 02/03/03 - - -15,700 164 Hamilton Ave CDCP 01/13/05 - - -2,799 335 University Ave CDCGFP 08/10/05 - 4,500J +5,249 382 University Ave CDCGFP 07/27/06 - 194 +194 102 University Ave CDCGFP 10/10/2006 - - +8 325 Lytton Ave CDCP 5/2006 - - +17,515 Page 6 Project Address Zoning Date Approved Public Benefit Bonus Non Residential Square Footage Seismic, Historic, or Minor Bonus Square Footage Net change in Non Residential Floor Area 310 University Ave CDCGFP 07/31/2008 - 7,481 +7,481 317-323 University Ave CDCGFP 01/2008 - 2,500 +3,290 564 University Ave CDCP 7/2008 - 2,500 +4,475 278 University CDCGFP 11/2008 - - +137 265 Lytton CDCP 7/2010 - 3,712 +21,151 340 University CDCP 12/2010 - - -1,360 524 Hamilton CDCP 2/2011 - 5,200 +9,345 630 Ramona CDCP 6/2011 - 437 +437 668 Ramona CDCP 7/2011 - 4,940 +4,940 661 Bryant CDCP 2/2011 - 1,906 0 335-355 Alma CDCP 8/11 9,700 - 49,863 Totals 1986-2012 44,078 93,931 223,219 A: Project approved during the Downtown Moratorium (9/84 to 9/86), but was not included in the Downtown EIR’s “pipeline projects.” As a result, the project is counted among the CD District’s nonresidential development approvals since the enactment of the Downtown Study Policies in 1986 B: Through Assessment District project provided additional 64 public parking spaces as part of public benefit instead of required 44 private spaces C: Project exceeded square footage otherwise allowed by zoning Page 7 D: Project converted residential space to non-residential space. Net non-residential space counts toward the 350,000 square foot limit E: Project included covered parking that counts as floor area but not counted 350,000 square foot limit F: Project was approved pursuant to PAMC Sections 18.83.120 or 18.83.130 which allow for a reduction in the number required parking spaces for shared parking facilities, joint use parking facilities, or substitution of 8 bike parking spaces for one vehicle space. G. In addition, project paid in-lieu fee for loss of 2 on-site parking spaces H: In addition, projects paid in-lieu fee for loss of 4 on-site spaces I: Part of the SOFA 2 CAP J: Transfer of Development Right (TDR) agreement with 230 and 232 Homer Avenue. 5000 total sq ft of TDR but only 4,500 sq. ft used for Non Residential Floor Area. Page 8 Page 1 CD PARKING DEFICIT FROM 9/1/86 to 8/31/2012 ATTACHMENT D PROJECT ADDRESS ZONING NET CHANGE IN NON/ RESIDENTIAL FLOOR AREA ADDED PARKING REQUIRED NET ADDED PARKING SPACES PARKING EXEMPTIONS PER 18.52.060 OF PAMC NET DEFICIT CHANGE TOTAL CUMULATIVE DEFICIT 1986 deficit 1,601 520 Ramona StreetA CDCGFP +400 2 0 0 +2 1,603 220 University Avenue CDCGFP +65 0 0 0 0 1,603 151 Homer Avenue CDSP -9,750 0 11 0 -50 1,553 314 Lytton Avenue CDCP -713 0 0 0 -3 1,550 247-275 Alma Street CDNP +1,150 5 5 0 0 1,550 700 Emerson Street CDSP +4,000 16 16 0 0 1,550 431 Florence St CDCP +2,500 10 0 10 +10 1,560 Page 2 PROJECT ADDRESS ZONING NET CHANGE IN NON/ RESIDENTIAL FLOOR AREA ADDED PARKING REQUIRED NET ADDED PARKING SPACES PARKING EXEMPTIONS PER 18.52.060 OF PAMC NET DEFICIT CHANGE TOTAL CUMULATIVE DEFICIT 156 University Avenue CDCGFP +4,958 20 0 20 +20 1,580 401 Florence Street CDCP +2,407 10 0 10 +10 1,590 619 Cowper Street CDCP +2,208 9 9 0 0 1,590 250 University Avenue PC-3872 +20,300 103 131B 0 -28 1,562 550 University Avenue CDCP -371 0 0 0 -1 1,561 529 Bryant Street PC-3974 +2,491 10 0 10 +10 1,571 520 Webster StreetC PC-3499 0 0 163 0 -163 1,408 305 Lytton Ave CDCP +200 1 0 1 +1 1,409 550 Lytton Avenue CDCP +4,845 19 19 0 0 1,409 Downtown Extensive restriping by Transportation Division of on and off/street parking -96 1,313 Page 3 PROJECT ADDRESS ZONING NET CHANGE IN NON/ RESIDENTIAL FLOOR AREA ADDED PARKING REQUIRED NET ADDED PARKING SPACES PARKING EXEMPTIONS PER 18.52.060 OF PAMC NET DEFICIT CHANGE TOTAL CUMULATIVE DEFICIT 531 Cowper Street PC-4052 +9,475 38 0 2 +38 1,351 540 Bryant Street CDCGFP +404 2 0 2 +2 1,353 530/534 Bryant Street CDCGFP +432 2 0 2 +2 1,355 555 Waverley Street/425 Hamilton AvenueD CDCP +2,064 8 0 0 +8 1,363 201 University Avenue CDCGFP +2,450 10 0 10 +10 1,373 518 Bryant Street CDCGFP +180 1 0 1 +1 1,374 245 Lytton Ave CDCP -21,320 90 149 0 -59 1,315 400 Emerson Street PC-4238 +4,715 18 5 1 +14 1,329 443 Emerson Street CDCGFP +26 0 0 0 0 1,329 Page 4 PROJECT ADDRESS ZONING NET CHANGE IN NON/ RESIDENTIAL FLOOR AREA ADDED PARKING REQUIRED NET ADDED PARKING SPACES PARKING EXEMPTIONS PER 18.52.060 OF PAMC NET DEFICIT CHANGE TOTAL CUMULATIVE DEFICIT 420 Emerson Street CDCP +125 1 0 1 +1 1,336 340 University Avenue CDCGFP -402 0 0 0 -2 1,334 281 University Avenue CDCGFP -2,500 0 0 0 -10 1,324 456 University Avenue CDCGFP +7,486 30 0 30 +30 1,354 536 Ramona Street CDCGFP +134 1 0 1 +1 1,355 725-753 Alma Street PC-4283 -1,038 7 7 0 -11 1,344 552 Emerson Street CDCGFP +177 1 0 1 +1 1,345 483 University Avenue PC-4296 +7,289 29 -2E 11 +31 1,376 424 University Avenue CDCGFP +2,803 11 0 11 +11 1,387 901/909 Alma PC-4389 +4,425 18 18 0 0 1,387 Page 5 PROJECT ADDRESS ZONING NET CHANGE IN NON/ RESIDENTIAL FLOOR AREA ADDED PARKING REQUIRED NET ADDED PARKING SPACES PARKING EXEMPTIONS PER 18.52.060 OF PAMC NET DEFICIT CHANGE TOTAL CUMULATIVE DEFICIT StreetD 171 University Avenue CDCGFP +1,853 7 0 7 +7 1,394 401 High Street CDCP +350 1 0 1 +1 1,395 430 Kipling Street CDCP +1,412 5 -4E 1 +10 1,405 460/476 University Avenue CDCGFP +1,775 7 0 7 +7 1,412 400 Emerson Street PC-4238 +2,227 9 0 0 +9 1,421 275 Alma StreetF CDNP +3,207 0 0 1 +1 1,422 390 Lytton Avenue PC-4436 +17,815 74 50 3 +27 1,449 411 High Street CDCP +2,771 0 -4E 11 +15 1,464 530 Ramona CDCGFP 2852 11 0 11 +11 1475 Page 6 PROJECT ADDRESS ZONING NET CHANGE IN NON/ RESIDENTIAL FLOOR AREA ADDED PARKING REQUIRED NET ADDED PARKING SPACES PARKING EXEMPTIONS PER 18.52.060 OF PAMC NET DEFICIT CHANGE TOTAL CUMULATIVE DEFICIT 705 Alma St CDSP 2814 11 0 11 +11 1486 200 Hamilton Ave CDCP 10,913 44 3E 35 +41 1527 550 Lytton Ave CDCP 93 0 0 0 0 1527 528 High St PF 0 0 138 G 0 -138 1389 445 Bryant PF 0 0 575 G 0 -575 814 437 Kipling St CDCGFP 945 4 0E 2 +4 818 701 Emerson St CDSP 434 2 1 1 +1 819 723 Emerson St CDSP 400 2 2 0 0 819 880 / 884 Emerson St CDSP 312 2 5 0 -3 816 Page 7 PROJECT ADDRESS ZONING NET CHANGE IN NON/ RESIDENTIAL FLOOR AREA ADDED PARKING REQUIRED NET ADDED PARKING SPACES PARKING EXEMPTIONS PER 18.52.060 OF PAMC NET DEFICIT CHANGE TOTAL CUMULATIVE DEFICIT 539 Alma St CDCGFP 2,500 10 0 10 +10 826 270 University Ave CDCGFP 2,642 11 0E 11 +11 837 SUBTOTAL 86-02 106,930 672 1297 236 -764 837 901 High St. CDSP 12,063 59D 60 0 -1 836 800 High St. H PC-4779 -15,700 0 63 0 -63 773 164 Hamilton Ave CDCP -2499 0 0 0 0 773 335 University AveI CDCGFP 5,249 0 0 0 0 773 Page 8 PROJECT ADDRESS ZONING NET CHANGE IN NON/ RESIDENTIAL FLOOR AREA ADDED PARKING REQUIRED NET ADDED PARKING SPACES PARKING EXEMPTIONS PER 18.52.060 OF PAMC NET DEFICIT CHANGE TOTAL CUMULATIVE DEFICIT 382 University Ave CDCGFP 194 0 0 1 +1 774 102 University Ave CDCGFP 8 0 0 0 0 774 310 University Ave CDCGFP 7,481 30 0 30 +30 804 317-323 University Ave CDCGFP 3,290 0 0 0 0 804 564 University Ave CDCP 4,475 10 0 10 +10 814 325 Lytton Ave CDCP 17,515 110 6 0 -6 808 265 Lytton CDCP 21,151 106 52 0 +54 860 278 University CDCGFP +137 1 0 1 +1 861 340 University CDCP -1,360 861 524 Hamilton CDCP +9,345 31 8 23 +23 884 Page 9 PROJECT ADDRESS ZONING NET CHANGE IN NON/ RESIDENTIAL FLOOR AREA ADDED PARKING REQUIRED NET ADDED PARKING SPACES PARKING EXEMPTIONS PER 18.52.060 OF PAMC NET DEFICIT CHANGE TOTAL CUMULATIVE DEFICIT 630 Ramona CDCP +437 2 0 2 +2 886 668 Ramona CDCP +4,940 20 0 20 +20 906 661 Bryant CDCP 0 0 0 0 0 906 Downtown Extensive restriping by Transportation Division of on and off/street parking -32 874 180 Hamilton Avenue CDCP 0 0 0 5 +5 879 355 Alma Street CDCP +49,863 166 144 22 +22 901 TOTAL 223,219 1,077 1,816 350 676 901 A: Project approved during the Downtown Moratorium (9/84 to 9/86, but was not included in the Downtown EIR’s “pipeline projects.”) As a result, the project is counted among the CD District’s nonresidential development approvals since the enactment of the Downtown Study Policies in 1986 B: Through Assessment District project provided additional 64 public parking spaces as part of public benefit C: Addition of 2 levels of parking to Cowper/Webster garage D: Project was approved pursuant to PAMC Sections 18.83.120 or 18.83.130 which allow for a reduction in the number required parking spaces for shared parking facilities, joint use parking facilities, or substitution of 8 bike parking spaces for one vehicle space. Page 10 E. Project removed existing on-site spaces or met required parking by paying in-lieu fee F: Site had existing parking sufficient to allow expansion G: Construction of 2 city parking lots. 528 High completed on Aug. 2003 and 445 Bryant completed on Nov. 2003 H: Part of the SOFA 2 CAP I: As per PAMC 18.87.055, the TDR area transferred to the site does not increase the number of automobile parking spaces required for the additional floor area. Page 11 ATTACHMENT E Commercial Downtown (CD) and SOFA 2 CAP Floor Area by Use Category Use Category Area (October 1986) Area (October 2012) Area Change, percentage 1. Offices 1,100,000 1,400,000 27% % 2. Retail 500,000 625,000 25.00% 3. Eating & Drinking 150,000 275,000 83.33% 4. Financial Services 200,000 200,000 0.00% 5. Business Services 150,000 175,000 16.67% 6. Basement Storage 175,000 100,000 -42.86% 7. Hotels 100,000 150,000 50.00% 8. Personal Services 75,000 125,000 66.67% 9. Utility Facility 150,000 100,000 -33.33% 10. Public Facilities 50,000 75,000 50.00% 11. Automotive Services 150,000 50,000 -66.67% 12. Recreation/Private Club 25,000 50,000 100.00% 13. Theaters 50,000 25,000 -50.00% 14. Warehousing & Distribution 50,000 25,000 -50.00% 15. Manufacturing 50,000 0 -100.00% 16. Religious Institutions 50,000 25,000 -50.00% 17. Multi-Family Residential 250,000 400,000 50.00% 18. Single Family Residential 50,000 25,000 -50.00% 19. Vacant & Under Construction 150,000 50,000 -66.66% 20. Vacant & For Sale 0 0 21. Vacant & Available 150,000 100,000 -33.33% Total 3,625,000 3,875,000 5.52% ADJUSTED TOTAL: (Deduct residential uses, religious institutions, vacant & for sale and vacant & under construction.) 3,125,000 3,350,000 (Rounded to the nearest 25,000 square feet) * The above table is rounded to the nearest 25,000 square feet and was based on a table originally prepared in 1986. Over the years, because of the rounding to 25,000 square foot increments, the table has had a greater margin of error. Staff attempted to update the table from the beginning in 1998; therefore the numbers may not compare directly to tables prepared prior to the 1998 report. CITY OF PALO ALTO CITY COUNCIL ACTION MINUTES Special Meeting November 13, 2012 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:38 P.M. Present: Burt, Espinosa, Holman, Klein, Price, Scharff, Schmid, Shepherd, Yeh Absent: Special Orders of the Day 1. Community Celebration and City Council Resolution 9297 entitled “Resolution of the Council of the City of Palo Alto Honoring Former Mayor Gary Fazzino”. MOTION: Council Member Espinosa moved, seconded by Council Member Shepherd to approve the Resolution honoring former Mayor Gary Fazzino. MOTION PASSED: 9-0 Council took a break from 6:53 P.M until 7:15 P.M. Consent Calendar MOTION: Council Member Espinosa moved, seconded by Council Member Price to approve Agenda Item Nos. 2-4. Council Member Klein advised he would not be participating in Agenda Item No. 3 as his wife is on staff at Stanford University. Mayor Yeh advised he would not be participating in Agenda Item No. 3 as his wife was a Stanford University student. 2. Approval of Assistance to Firefighters Grant to Purchase Multi-Band Portable Radios, With Matching City Funds of 20 Percent for an amount Not to Exceed of $46,000. November 13, 2012 3. Approval of Stanford University Medical Center Annual Report and Compliance with the Development Agreement. 4. Acceptance of a Final Map Street Dedication at 382 and 384 Curtner Avenue. MOTION PASSED for Agenda Item Nos. 2 and 4: 9-0 MOTION PASSED for Agenda Item No. 3: 7-0 Klein, Yeh not participating Agenda Changes, Additions and Deletions 7. Adoption of a Budget Amendment Ordinance and Approval of a Loan Request From Palo Alto Housing Corporation in the Amount of $5,820,220 for the Acquisition of 567-595 Maybell Avenue (continued from November 5, 2012-staff request item be continued to November 19, 2012). MOTION: Mayor Yeh moved, seconded by Council Member Espinosa to continue Agenda Item Number 7 to November 19, 2012. MOTION PASSED: 9-0 Action Items 5. Public Hearing: Approval of a Record of Land Use Action for a Site and Design Application for the San Francisquito Creek Joint Powers Authority's (JPA) Initial Flood Protection Project (Highway 101 to San Francisco Bay), Adoption of a Park Improvement Ordinance for Modifications to the Palo Alto Municipal Golf Course and the John Fletcher Byxbee Recreation Area, and Adoption of a Resolution 9296 entitled “Resolution of the Council of the City of Palo Alto Authorizing an Exception to Palo Alto Municipal Code Chapter 10.48 to Allow Transfer of Soil from the Stanford University Medical Center Construction Project to the Palo Alto Golf Course and Adjacent Areas”. MOTION: Council Member Holman moved, seconded by Mayor Yeh to continue this item to a date to be determined by Staff to allow; 1) Staff time to discuss with JPA and determine means of discussion regarding the EIR, 2) consider the timing, staging, and the route of the fill, and 3) negotiations of any fees collected as a result of the fill. November 13, 2012 Mayor Yeh withdrew his second for the Motion. MOTION FAILED DUE TO THE LACK OF SECOND MOTION: Vice Mayor Scharff moved, seconded by Council Member Price to: 1) Approve a Record of Land Use Action approving the Site and Design application for the San Francisquito Creek Joint Powers Authority (JPA) initial flood protection project (Highway 101 to San Francisco Bay) based upon the findings and conditions in the Record of Land Use Action; 2)Adopt the attached Park Improvement Ordinance for modifications to the Palo Alto Municipal Golf Course and the John Fletcher Byxbee Recreation Area, and 3) altering language in the Record of Land Use, Section 7-Conditions of Approval, Item 8 to delete the word “consider” and change “adding” to “add”. MOTION PASSED: 8-1 Holman no Mayor Yeh and Council Member Klein left the meeting at 8:40 P.M. MOTION: Vice Mayor Scharff moved, seconded by Council Member Price to adopt the resolution authorizing an exception to Chapter 10.48 [Trucks and Truck Routes] of the Palo Alto Municipal Code for the limited purpose of allowing a transfer of soil from the Stanford University Medical Center construction project along Oregon Expressway to the Palo Alto Golf Course and adjacent areas. AMENDMENT: Council Member Holman moved, seconded by Council Member Schmid that acceptance of fill prior to necessary need for construction project should not interfere with playability of the golf course AMENDMENT WITHDRAWN BY THE MAKER AMENDMENT: Council Member Burt moved, seconded by Council Member Holman that prior to accepting fill that would impact golf course play, Staff would bring a cost benefit analysis back to Council for approval prior to accepting a fill contract. AMENDMENT PASSED: 5-2 Price, Shepherd no, Klein, Yeh not participating MOTION AS AMENDED PASSED: 7-0 Klein, Yeh not participating Mayor Yeh and Council Member Klein returned to the meeting at 9:06 November 13, 2012 P.M. 6. Update of Parking Program and Review and Direction on Parking Policy Strategies (continued from November 5, 2012). MOTION: Council Member Shepherd moved, seconded by Council Member XXXX to direct Staff to handle the parking policy strategies as presented. MOTION FAILED DUE TO THE LACK OF A SECOND MOTION: Council Member Klein moved, seconded by Council Member Schmid that this item would end no later than 11:30 P.M. MOTION PASSED: 7-2 Holman, Scharff no MOTION: Vice Mayor Scharff moved, seconded by Council Member Shepherd to accept Staff recommendations to: 1) Complete parking study and then come back to Council for determination of Trial Parking Attendant Program in report to Council in 6 months, 2) Refer the Development of an RFP for Downtown Cap Study to the Planning & Transportation Commission to review the scope of work, 3) Refer the zoning evaluation and TDM program to the Planning & Transportation Commission to review scope of work, 4) RFP for Garage Access/Revenue Controls, focus on parking monitoring below and report to Council in 6 months, 5) Technology: parking monitoring, develop RFP through PTC, 6) Refer Electric Vehicle charging stations to the Planning & Transportation Commission and they are to provide a report to Council in 3 months, 7) Bicycle Parking Stations continue to pursue opportunities, 8) Policy: on street accessible parking to PTC and report to Council in 3 months, 9) Refer short term residential parking strategies, to the Planning & Transportation Commission and then report to Council,, 10) Delete the recommendation regarding Professorville Permits-No Driveway Home, and 11) California Avenue permit Management work with Cal Ave Merchants, report to Council in 6 months. AMENDMENT: Council Member Holman moved, seconded by Council Member Burt to include Recommendation Number 10- Professorville Permits-No Driveway Home to Planning and Transportation Commission and report to City Council. November 13, 2012 AMENDMENT PASSED: 5-4 Klein, Price, Scharff Shepherd no MOTION PASSED: 8-1 Holman no Council Member Questions, Comments and Announcements Council Member Price reported out on the November 1, 2012 Santa Clara Valley Transportation Authority Board meeting, the Board approved the optimal solution for the Bus Rapid Transit program. Council Member Holman spoke about the passing of former Council Member Ellen Fletcher and requested the meeting to be adjourned in her honor. Mayor Yeh stated that the Council would also be honoring Ms. Fletcher at the next City Council meeting with a Resolution. Council Member Burt stated the service for Ms. Fletcher would be held on Sunday, November 18, 2012 at the Center for Jewish Life. Adjournment: The meeting was adjourned the meeting in memory of Ellen Fletcher at 11:35 P.M.