HomeMy WebLinkAboutStaff Report 2311-22835.Adoption of an Urgency Ordinance and an Interim Ordinance That Allows the Director of
Planning and Development Services to Extend Planning Entitlements for Housing
Development Projects up to an Additional 18 Months. Environmental Review: Exempt
from CEQA in Accordance with CEQA Guidelines 15061(b)(3). Public Comments
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: December 11, 2023
Report #:2311-2283
TITLE
Adoption of an Urgency Ordinance and an Interim Ordinance That Allows the Director of
Planning and Development Services to Extend Planning Entitlements for Housing Development
Projects up to an Additional 18 Months. Environmental Review: Exempt from CEQA in
Accordance with CEQA Guidelines 15061(b)(3).
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt an urgency ordinance (Attachment A) that would be effective immediately and
allow the director of planning and development services to extend expiring housing-
related planning entitlements up to 18 months.
2. Adopt an interim ordinance (Attachment B) that would replace the urgency ordinance
after 45 days, granting this authority through calendar year 2024.
BACKGROUND
The director of planning and development services requests Council authorization to extend
housing development planning entitlements up to an additional 18 months. This request is
made to address two known projects representing 105 housing units that are set to expire in
December 2023 and January 2024. The City is relying on these projects in part to meet its
regional housing needs assessment and they are identified as qualifying pipeline projects in the
Housing Element. While expiration of the planning entitlements would not foreclose the
opportunity for the City to continue to apply these sites in the Housing Element, the need to re-
entitle the projects may delay housing production. The authority granted by these ordinances
would expire on December 31, 2024.
Staff presented the subject recommendation to the Policy and Services Committee on
November 14, 2023.1 The Committee endorsed the recommendation 3-0, with a slight
1 Staff Report, dated November 14, 2023:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=3386&meetingTemplateType=2&comp
iledMeetingDocumentId=8402.
adjustment to eliminate a reference that the authorization would sunset when the state
housing and community development department certified the City's housing element. This
reference was found to be unnecessary and removed from the ordinance. Because the
Committee was unanimous in its recommendation and due to the time constraints associated
with the pending entitlements, staff is placing the first reading ordinance on the Consent
Calendar. Three members of the City Council may choose to pull the matter from the agenda in
accordance with the City Council’s procedures and protocols handbook, if found to be
necessary.
ANALYSIS
Staff are aware of two housing projects that have pending planning entitlements about to
lapse. One project is located at 3585 El Camino Real (3 units) and another at 788 San Antonio
Road (102 units), which expire in December and January, respectively. Staff received one letter
from a property owner’s representative detailing one of these circumstances (Attachment C). In
these instances, if an extension is not granted, 105 housing units may expire. An expired
entitlement would not preclude the owners from seeking a new housing development but it
would impose additional time and costs to secure another planning approval.
Planning permits and approvals typically expire within 12 months, or within the time provided
in the permit or approval. The planning and development services director is already authorized
to extend this time for up to 12 additional months. The proposed ordinance would allow an
additional 18-month extension. For qualifying housing projects that have not already received a
12-month extension, a total of 30 months could be authorized (12+18 months) while the
temporary ordinance is effective.
The attached urgency ordinance would become effective immediately upon adoption by the
City Council and is valid for only 45 days. Its passage would enable the planning director to
extend the project entitlements before they expire. The second, interim ordinance would
become effective 30 days after the second reading and as proposed, would expire at the end of
calendar year 2024.
The ordinances only apply to housing projects with two-thirds or more floor area dedicated
toward residential uses.
FISCAL/RESOURCE IMPACT
The recommendation in this report does not have any significant fiscal or resource impacts.
STAKEHOLDER ENGAGEMENT
Notice of the ordinance will be made available online, posted on the public noticing kiosk at
King Plaza, City Hall, and published in the Daily Post at least 10 days in advance of the meeting.
ENVIRONMENTAL REVIEW
The recommendation in this report is exempt from the provisions of the California
Environmental Quality Act pursuant to CEQA Guideline sections 15061(b)(3) because it can be
seen with certainty that the proposed action would not have the potential for causing an
impact on the environment.
ATTACHMENTS
Attachment A: Urgency Ordinance Authorizing Extensions for Housing
Attachment B: Ordinance Authorizing Extensions for Housing Projects
Attachment C: Property Owner Representative Letter Regarding 788 San Antonio Road
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
*NOT YET ADOPTED* Attachment A
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0160129_20231128_ay16
Ordinance No. _____
Emergency Ordinance of the Council of the City of Palo Alto Temporarily
Authorizing the Director of Planning and Development Services to Extend
the Validity of Planning Entitlements for Housing Development Projects
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. Pursuant to state law, the City of Palo Alto (City) was assigned a regional housing need
allocation (RHNA) of 6,086 housing units for the 2023-2031 planning period, comprised
of 1,556 very-low income units, 896 low-income units, 1,013 moderate-income units, and
2,621 above moderate-income units; and
B. In accordance with state law and to further the City’s goals of producing housing, the City
Council adopted the City of Palo Alto 2023-2031 Housing Element on May 8, 2023.
C. Construction of housing units that have been previously approved is an essential factor in
meeting the City’s RHNA and Housing Element goals.
D. Changes in economic conditions and other factors may result in a delay in construction of
housing units following approval by the City.
E. Pursuant to Palo Alto Municipal Code section 18.77.090, planning permits and approvals
shall expire within 12 months, or within the time provided in the permit or approval,
unless the proposed use of the site or construction of buildings has commenced. In
addition, the Planning Director is authorized to extend this time for up to 12 additional
months.
F. In order to permit maximum flexibility for property owners who obtain or have obtained
planning permits or approvals for Housing Development Projects, as defined in
Government Code Section 65589.5, the City Council desires to authorize the Planning
Director to issue further extensions of time before a planning permit or approval will
expire.
G. The City Council declares that this emergency ordinance is necessary as an emergency
measure to preserve the public peace, health or safety by promoting the development of
much-needed housing in Palo Alto, in particular because one or more planning permits or
approvals for Housing Development Projects may expire in the near future.
SECTION 2. Notwithstanding Section 18.77.090 of the Palo Alto Municipal Code or the
provisions of any planning permit or approval, the Director of Planning and Development Services
*NOT YET ADOPTED* Attachment A
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0160129_20231128_ay16
is authorized, in his or her sole discretion, to extend the duration of a planning permit or approval
for a Housing Development Project, as defined in Government Code Section 65589.5, by an
additional eighteen (18) months beyond the expiration date that would otherwise apply. The
authority granted herein shall be effective until December 31, 2024.
SECTION 3. The Council finds that the adoption of this ordinance is exempt from the
provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections
15061(b)(3) because it can be seen with certainty that that the extension of a planning
entitlement will not have a significant impact on the environment.
SECTION 4. This Ordinance shall be effective immediately upon adoption and, unless
repealed or extended by the City Council, shall remain in effect for 45 days, or until a replacement
ordinance becomes effective, whichever comes first.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
NOT YET ADOPTED Attachment B
1
0160130_20231128_ay16
Ordinance No. _____
Interim Ordinance of the Council of the City of Palo Alto Temporarily
Authorizing the Director of Planning and Development Services to Extend
the Validity of Planning Entitlements for Housing Development Projects
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. Pursuant to state law, the City of Palo Alto (City) was assigned a regional housing need
allocation (RHNA) of 6,086 housing units for the 2023-2031 planning period, comprised
of 1,556 very-low income units, 896 low-income units, 1,013 moderate-income units, and
2,621 above moderate-income units; and
B. In accordance with state law and to further the City’s goals of producing housing, the City
Council adopted the City of Palo Alto 2023-2031 Housing Element on May 8, 2023.
C. Construction of housing units that have been previously approved is an essential factor in
meeting the City’s RHNA and Housing Element goals.
D. Changes in economic conditions and other factors may result in a delay in construction of
housing units following approval by the City.
E. Pursuant to Palo Alto Municipal Code section 18.77.090, planning permits and approvals
shall expire within 12 months, or within the time provided in the permit or approval,
unless the proposed use of the site or construction of buildings has commenced. In
addition, the Planning Director is authorized to extend this time for up to 12 additional
months.
F. In order to permit maximum flexibility for property owners who obtain or have obtained
planning approvals that are in danger of expiration, the City Council desires to authorize
the Planning Director to issue further extensions of time before a planning permit or
approval will expire.
SECTION 2. Notwithstanding Section 18.77.090 of the Palo Alto Municipal Code or the
provisions of any planning permit or approval, the Director of Planning and Development Services
is authorized, in his or her sole discretion, to extend the duration of a planning permit or approval
for a Housing Development Project, as defined in Government Code Section 65589.5, by an
additional eighteen (18) months beyond the expiration date that would otherwise apply. The
authority granted herein shall be effective only until December 31, 2024.
NOT YET ADOPTED Attachment B
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0160130_20231128_ay16
SECTION 3. The Council finds that the adoption of this ordinance is exempt from the
provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections
15061(b)(3) because it can be seen with certainty that that the extension of a planning
entitlement will not have a significant impact on the environment.
SECTION 4. This ordinance shall be effective on the thirty-first date after the date of its
adoption and shall expire on December 31, 2024.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
CHARLOTTE 4601 Park Road, Charlotte, NC 28209 T. 704 372 5616 F. 704 372 9882
CARY 117 Edinburgh S Drive, Cary, NC 27511 T. 919 461 3950 F. 919 461 3939
WINSTON-SALEM 500 W 5th Street, Winston-Salem, NC 27101 T. 336 923 7650 F. 336 777 0624
ATLANTA 47 Perimeter Center East, Atlanta, GA 30346 T. 770 604 3387 F. 770 604 3959
grubbproperties.com
Grubb Properties, LLC
4601 Park Road, Suite 450
Charlotte, NC 28209
October 18, 2023
Jonathan Lait, Director of Planning
Planning and Community Environment Department
250 Hamilton Avenue
Palo Alto, CA 94301
jonathan.lait@cityofpaloalto.org
RE: Entitlement Extension Request for 788 San Antonio Road Project
Dear Mr. Lait,
On July 27, 2022, Grubb Properties acquired the property located at 788 San Antonio Road with an existing
entitlement in place for that certain 102-unit housing project that was approved by City Council on 11/16/2020.
Since that acquisition, Grubb made a good faith effort to see that project through as entitled and submitted the
building permit application that December 2022.
Amid worsening economic conditions in the construction financing sector unfolding across the country, Grubb
subsequently made the decision to put the building permit application process on hold in April 2023 and sought to
work with your Planning Department to find comprehensive solutions to maintain the economic viability of this
housing project.
As that process continues, the entitlement expiration of January 06, 2024 is approaching and we respectfully submit
this request for an 18-month extension to July 06, 2025. Approval of this request allows our respective parties to
continue coordination efforts on the feasibility of this housing project at 788 San Antonio Road. We appreciate your
prompt consideration of this request.
Sincerely,
Megan Watson
Director, Development
Grubb Properties, LLC
mwatson@grubbproperties.com
CC: Ted O’Hanlon, Consulting Project Manager
From:Megan Watson
To:Council, City
Cc:Ted O"Hanlon; Harris, Arielle O.
Subject:Dec. 11th - City Council Regular Meeting - Agenda Item No. 5
Date:Monday, December 11, 2023 11:31:10 AM
Attachments:image001.png
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To Members of the City Council,
On the matter of Item No.5 on the Consent Calendar, regarding the Entitlement Extension
Ordinances for housing projects, we wanted to thank the Policy and Services Committee for
recommending its approval before the full Council this evening, as well as thank the Planning
Department for their heightened attention on this matter over the past two months. We remain
aligned with the Council’s goals of maintaining the viability of pipeline housing projects and are fully
committed to seeing our project at 788 San Antonio Road through as we look to 2024 for economic
conditions to improve. The two ordinances proposed tonight are a critical step in that process and
we offer our full support of the approval and adoption this evening.
Thank you again for your time and consideration on this item.
Sincerely,
Megan Watson
Megan Watson
Director, Development | Grubb Properties
10000 West Washington Blvd
WeWork, 6th Floor
Culver City, CA 90232
Mobile: 405-973-5229
mwatson@grubbproperties.com
grubbproperties.com
From:Kwanza Price
To:Council, City
Subject:Agenda Item #5 - Development of Parking & Downtown Housing Proposals
Date:Sunday, December 10, 2023 2:01:17 PM
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Dear Palo Alto City Council,
I am a resident of Palo Alto. I moved here with my 5 year old in 2018 from NYC after being
recruited for a role with a company in PA. We currently rent and will never be able to afford
to purchase here, or nearby, without the creation of affordable housing or creative financing.
Yet, I am convinced that our presence adds value. We are an African-American family. I am a
scientist and my daughter is a budding artist who loves her school here in Palo Alto.
Regarding Agenda Item #5, I Implore you to consider these facts:
We need significant density and larger buildings at these city-owned sites, which means
more affordable units and more people housed
Within 0.5 mile there are more than 10 structures over 90 feet and with floor area
ratios (FARs) above 5.0. We need to maximize development to create more housing
Housing is needed not just so that workers can afford to live here to service the wealthy
-- young, innovative, middle class families deserve housing too and the diversity
these new families would bring would only enrichen our community
The surrounding area is rich in jobs, transit/bike infrastructure, retail and services,
and schools need higher enrollment. It is the perfect place to add (a lot) more housing.
Housing downtown actively demonstrates our commitment to Affirmatively Furthering
Fair Housing by spreading affordable units more equitably across the city
We need to act with speed, vision, and compassion for those who desperately need
stable, affordable housing.
Housing is healthcare - providing shelter from the physical elements but also emotional
well-being and more agency regarding how we move and locate our bodies. Thee are
many studies finding an association between good health and long-term permanent,
stable housing.
Sincerely,
Kwanza Price