HomeMy WebLinkAbout2000-02-07 City Council (11)City of Palo Alto
Cit.y Manager’s Report
7
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: CITY MANAGER
DATE:FEBRUARY 7, 2000 CMR: 128:00
SUBJECT:ANNUAL PUBLIC REVIEW OF COMPLIANCE OF
DEVELOPMENT AGREEMENT WITH STANFORD UNIVERSITY
FOR THE SAND HILL CORRIDOR PROJECTS
REPORT IN BRIEF
The 1997 Sand Hill Corridor Development Agreement requires Stanford University to
provide an annual report to the City Council. A memorandum from Stanford
Management Company regarding 1998-99 activities is attached. This staff report reviews
the report and identifies additional activities that have occurred since the report was
prepared in November 1999. These additional activities include the Appellate District
Court decision on the City of Menlo Park versus City of Palo Alto lawsuit and City
Manager approval of a change in project phasing. Also identified are major construction
activities that will occur in 2000. It is recommended that the City Council find Stanford
University has complied in good faith with the terms and conditions of the Development
Agreement.
CMR:128:00 Page 1 of 4
RECOMMENDATION
Staff recommends that the City Council:
Find that Stanford University has complied in good faith with the terms and
conditions of the Development Agreement; and
o Direct staff to issue a Certificate of Compliance to the University, according to the
provision of Section 10(a) of the Agreement, stating that:
ao The Agreement remains in effect, and
Stanford Unive~rsity is not in default.
BACKGROUND
In June 1997, the City Council approved Comprehensive Plan amendments, zoning
changes and design applications for the Sand Hill 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 E1 Camino Real. A Development Agreement vesting
these approvals was entered into between Stanford and the City and was effective on
August 14, 1997. The Agreement requires annual City Council review of Stanford’s
compliance.
DISCUSSION
The attached November 11, 1999 memo from Diane Healey, staff member of the
Stanford Management Company, describes Stanford’s second-year activities related to
implementation of the Development Agreement. These activities include final design
approval of a significant number of Project features; final subdivision map approval;
preparation and approval of construction level plans for most road and utility facilities;
demolition of the former Children’s Hospital buildings; and substantial construction of
roadway and utility facilities. Roads and utilities for the Apartments site were finished in
late 1999 and building permits were issued for the apartment building construction that is
underway.
Since the November 11 memo, several important activities have taken place:
On December 3, 1999, a three judge panel representing the Sixth Appellate
District Court unanimously upheld the 1998 decision upholding the City’s
certified Environmental Impact Report (EIR) and approval process for the
Projects.
The City Manager approved a request from Stanford for changes in the phasing
of three of the Projects. The changes include:
CMR: 128:00 Page 2 of 4
The final construction of Sand Hill Road from the recently
constructed Sand Hill Road access to/from E1 Camino Real to a
point about 300 feet east of the Oak Creek Apartment signalized
entry that is closest to San Francisquito Creek will be completed in
2000 rather than having construction in both 2000 and 2001. The
final segment of Sand Hill Road from the area near the Oak Creek
westerly traffic signal to near San Francisquito Creek continues to be
scheduled for construction in 2001 because of the need for additional
archaeological work in 2000.
Construction of the realigned Pasteur Drive will occur in 2000 rather
than 2001.
Arboretum Road construction will occur in 2000 and 2001 rather
than 1999 and 2000.
Sand Hill Road construction in Menlo Park is proposed for a new
Phase V with the date of construction-not determined because of the
Menlo Park City Council’s stated policy of unwillingness to approve
this construction.
Construction of the Senior Housing, which is anticipated to take
three years, will start in 2002 rather than 1999.
Construction of the approximately 60,000 square foot building in the
Shopping Center and adjacent parking areas will start in 2000 rather
than 2001. In conjunction with the final review of this building, City
and Stanford staff will resolve a variety of issues related to
ownership and maintenance responsibilities of utilities serving the
Shopping Center.
The Year 2000 construction season will begin with utility work in the Sand Hill
Road/Arboretum Road area starting in early February. Sand Hill Road and related
roadway construction will start by mid-March and continue into October. Construction
of the Apartments, which is currently underway, will continue through the year with
occupancy of the first apartments likely by late Summer and early Fall 2000.
Reconstruction of portions of the Stanford Shopping Center parking lots will occur in
phases starting in April 2000. Construction of the 10,000-square foot retail building on
Arboretum Road and the 60,000-square foot retail building in the area near the rear of
Macys Men’s Store will also begin in 2000.
RESOURCE IMPACT
None.
POLICY IMPLICATIONS
This report does not represent any changes to existing City policies.
CMR: 128:00 Page 3 of 4
ENVIRONMENTAL REVIEW
Issuance of the Certificate of Compliance is not a project under
Environmental Quality Act, and no environmental assessment is required.
the California
ATTACHMENTS
November 11, 1999 memo from Diane Healey
PREPARED BY: Kenneth R. Schreibel
CITY MANAGER APPROVAL:
Corridor Projects
cc: Stanford Management Company (Bob Reidy, Diane Healey)
Stanford University (Andy Coe)
City of Menlo Park (Jan Dolan)
County of Santa Clara (Ann Draper)
County of San Mateo (Gaye Quinn)
Town of Portola Valley (George Maeder)
Town of Woodside (Curtis Williams)
CMR:128:00 Page 4 of 4
M E R A N D U M
Zo~
From:
Date:
Subject:
Ken Schreiber
Diane H/~~~
Nove erm@~,i999
Sand Hill Development Agreement
Annual Report 1998
Pursuant to the Development Agreement and the City’s Notice dated July 31, 1998, this report is
being provided for the period from August 1, 1998 to July 30, 1999. The $2,000 annual report
recovery fee is attached (Check #6212542).
The following highlights the significant activity for the above reporting period:
On September 11, 1998, Judge Harkjoon Paik ruled in favor the Sand Hill Road
Projects and denied Menlo Park’s legal challenge. Menlo Park appealed the
ruling in December and all parties to the law suite have subsequently filed court
briefs. The Court of Appeal Decision is expected in early 2000.
Final ARB approvals were granted for the Stanford West Apartments, the
Shopping Center parking structure, Shopping Center parking lots landscaping,
Stanford Barn parking reconfiguration, and changes to Sand Hill, Quarry,
Vineyard and E1 Camino Real.
Final design approvals from Santa Clara County were obtained for Stock Farm
and Palo Roads.
The final subdivision map was approved and recorded in May 1999.
Stanford completed the demolition of the unoccupied Children’s Hospital facility
in November 1998. Temporary utilities to serve Ronald McDonald House and
Children’s Health Council were installed. The site is currently being utilized for
temporary construction parking and staging.
STANFORD MANAGEMENT COMPANY
Page 2
Ken Schreiber/Development Agreement Report
November 10, 1999
On-site public utilities, roads, and parking lots for the Stanford West Apartments
were started and will be completed by year-end 1999.
Construction on the Stanford Shopping Center parking structure (1,500 stalls)
commenced during the report period and was completed in November 1999.
There will be no construction activity within the Shopping Center during the
holiday shopping season. Planning activities for the retail buildings have
commenced and construction commencement is targeted for April, 2000 with a
target occupancy of November, 2000.
Work began on the connector roads, Palo Road and Stock Farm Road during the
report period and they were completed in October, 1999 and September, 1999
respectively. Palo Road construction commencement initially was delayed to
comply with the raptors nesting season. In conjunction with California
Department ofFish & Game, a red tail hawk’s nest was successfully relocated.
[]Permits granted by other agencies include an encroachment permit from Caltrans
and permits to construct Stock Farm and Palo Roads from Santa Clara County.
The Sand Hill Road infrastructure and utility improvements have presented the
greatest challenge due primarily to the need to maintain public services during the
course of construction. The interface and direct involvement of the City staff has
been very beneficial and substantially contributed to the early success of this
complex endeavor. During the holiday season construction will be limited to
accommodate the seasonal increase in corridor traffic. The critical path work will
be completed by the commencement of the holiday shopping season. It is
Stanford’s goal to accelerate the completion of nearly all the Sand Hill Road
improvements by one year, completing them in November, 2000.
[]Utility master planning commenced during this reporting period with most utility
planning completed by June, 1999.
Development Agreement compliance has been strictly adhered to by Stanford and closely
monitored by the City. The benefit of applying this level of diligence is apparent given the
limited number of community concerns expressed to date.
Ariel Calonne/CPA
June Fleming/CPA
Tony Sandhu/CPA
Sandy Skaggs/McCutchen
Curtis Feeny/SMC
H:\wp\Healey\DArepo~_files\1999 Development Report Final.doc