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HomeMy WebLinkAboutStaff Report 4117 City of Palo Alto (ID # 4117) City Council Staff Report Report Type: Informational Report Meeting Date: 10/21/2013 City of Palo Alto Page 1 Summary Title: Annual Review "Mayfield" Development Agreement Title: 2012 - 2013 Annual Review of Compliance with the "Mayfield" Development Agreement with Stanford University From: City Manager Lead Department: Planning and Community Environment RECOMENDATION 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 2012-2013. 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. City of Palo Alto Page 2  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.  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 before the end of calendar year 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 8, 2013 memo from Stanford Real Estate Office (Attachment A) describes Stanford’s 2012-13 activities related to implementation of the Development Agreement. In July of 2012, 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 City of Palo Alto Page 3 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. Within the last year, the City has not received an application for a demolition permit of the related Existing Square Footage located at the El Camino and California Avenue Sites. In addition, there has been no application for construction of Related Housing in the last fiscal year (FY13) or since the Effective Date of the Development Agreement. A building permit application for the 3431 Hillview Designated Project utilizing 90,000 square feet as Phase 2 Replacement Square Footage was received on July 30, 2012 (12000-01843 under new address 908 Arastradero Rd.), but a building permit has not been issued at this time. A project located at 911 Hansen Way received Architectural Review approval and recently obtained a building permit for a net addition of approximately 3,700 square feet. This project is not a “Designated Project” under the “Mayfield” Development Agreement and does not utilize any replacement or associated square footage. The City expects to receive an application from Stanford in mid-October 2013 for architectural review of the California Avenue Related Housing site at 1601 California Avenue, which would include 180 units. 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 2012/2013. RESOURCE IMPACT There are no resource impacts stemming from the review of the development agreement compliance program that affects the general fund. City of Palo Alto Page 4 POLICY IMPLICATIONS This report does not represent any changes to existing City policies. ENVIRONMENTAL REVIEW This is an informational report and is not a project under the California Environmental Quality Act. No environmental assessment is required. Attachments:  Attachment A: July 8, 2013 Memo from Stanford Real Estate Office (PDF)  Attachment B: Status of Development under Mayfield Development Agreement Table (PDF) STANFORD UNIVERSITY Mr. Aaron Aknin Assistant Director of Planning & Community Environment City of Palo Alto 250 Hamilton A venue Palo Alto, CA 94301 Dear Aaron: July 8, 2013 Pursuant to Section 10.1 of the Mayfield Development Agreement (the "Development Agreement") dated May 24, 2005 between The Board of Trustees of the Leland Stanford Junior University ("Stanford") and the City of Palo Alto ("City"), Stanford is required to submit a brief annual report on the status of the Housing, as that term is defined in the Development Agreement, and building activity in the Stanford Research Park. In the order specified in the Development Agreement, the building activity that has occun'ed in the past year includes the following: ill additional square footage approved and/or built in the Research Park: 911 Hansen Way: In June 2013, Varian received approval from the ARB for an approximately 3,731 square foot single story addition to an existing manufacturing facility. The new addition will be used for testing of medical radiation treatment equipment and will not increase the occupant load of the building. Besides 911 Hansen Way, it is Stanford's understanding that no additional square footage was approved by the City and/or built in the last year. (jjJ. any changes in Site boundaries with a map indicating the changes: There were no changes to Site boundaries in the last year. (iii) Replacement Square Footage built and Associated Square Footage used during the previous year and since the Effective Date: Phase 1 Replacement Square Footage Approved and Constructed: Since the Effective Date, 100,000 square feet of Phase 1 Replacement Square Footage and 330,000 square feet of Associated Square Footage have been approved and constructed at the 3401 Hillview A venue site. Phase 2 Replacement Square Footage Approved, but not Constructed: Stanford designated 3431 Hillview as a "Designated Site" on August 11,2011, and Stanford designated 90,000 square feet of Phase 2 Replacement Square Footage as a "Designated Project" ("Project") on July 6, 2012, which will be built on the STANFORD REAL ESTATE 3160 Porter Drive, Suite 200, Palo Alto, CA 94304 • T: 650.723.8902· F: 650.724.5059 Mr. Aaron Aknin July 8, 2013 Page 2 VMware campus at 3431 Hillview pursuant to receipt of City of Palo Alto approval as of March 21, 2012. The Project entails a stand-alone 90,000 square foot building, and thus no Associated Square Footage is designated as part of this Project. Construction of this Project has not yet commenced. (iv) applications (or additional square footage signed or authorized by Stanford. by Site, with the quantity of new square footage for each: 911 Hansen Way: In December 2012, Stanford authorized an application by Varian to construct an approximately 3,731 square foot single story addition to an existing manufacturing facility. The new addition will be used for testing of medical radiation treatment equipment and will not increase the occupant load of the building. (v) Housing units under construction during the previous year and since the Effective Date : No Housing has been constructed in the last year or since the Effective Date. Attached to this summary is a more detailed table of the building activity in the Research Park. This table accounts for the cumulative building activity that has taken place in the Research Park since the inception of the Development Agreement. Please let me know if any of the above information or the attachments require further clarification. Tiffany Griego Director, Stanford Research Park Cc (via email): Cara Silver, Senior Assistant City Attorney, City of Palo Alto Jean Snider Robert Reidy Debra L. Zumwalt Jean McCown Bill Phillips Mayfield Annual Report Status of development under Mayfield Development Agreement Stanford Research Park July 8, 2013 Commercial Development Rights -Summary Phase I Replacement Square Footage Phase" Replacement Square Footage Associated Square Footage Housing Development Rights / Guarantee 1451 California Avenue 150 I California Avenue 160 I California Avenue 2450 EI Camino Real 2470 EI Camino Real 2500 EI Camino Real Totals Housing Development Guarantee Guaranteed Dwelling Units Dwelling Units applied for to date (fonnal ARB submittal) Dwelling Units constructed to date Remaining Guaranteed Dwelling Units Vested 100.000 200,000 1.200,000 Site Acrea~ 4.52 3.93 8.51 0.58 0.58 0.64 18.77 To be applied for by December 3 I. 2013 185 o o 185 Approved Under Construction Constructed Remaining 100.000 0 100.000 0 90.000 0 0 I 10.000 330.000 0 330.000 870.000 Existing Sguare Footage 68.552 69.793 151.915 12.780 12.780 14.300 330,120 To be applied for by December 31. 2020 250 o o 250 Housing Armlied for Housing Constructed 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mayfield Annual Report Revised List of Additonal Square Footage Developments Since the Effective Date Stanford Research Park July 8, 2013 Mayfield Development Applications Designated Site I) 3401 Hillview Avenue 2) 3431 Hillview Avenue Non-Mayfield Development Applications Site I) 911 Hansen Way Date of Designated Project Designation 3401 Hillview Avenue 4/27/2006 3431 Hillview Avenue 7/6/2012 Totals Remaining Phase I Replacement SF Remaining Phase 2 Replacement SF Acreage 17.1 Remaining Associated SF EXisting Gross Roar Area 239.057 ReQlacement SF Associated SF 100.000 330.000 90.000 190,000 330,000 0 110.000 870,000 Existing Total Proposed Additional Proposed Total Additional Total Existing FAR fut..E! Gross Roor Area Gross Roor Area Proposed FAR ~ ~ 0.32 239.057 242.788 3,731 0.33 242,788 3.731 Status of Development under Mayfield Development Agreement rev. 09.13 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 / 11000-01715 3000 Hanover Avenue 0 37,762 37,762 Completed 11PLN-00096 / 11000-03019 3130 Hansen Way 18,629 30,200 11,571**Completed 11PLN-00336 / 11000-03145 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 12PLN-00474 / 13000-01221 911 Hansen Way 1,941 5,672 3,731 Building Permit Issued (08/30/2013) 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.