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HomeMy WebLinkAboutStaff Report 2601-5833CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, March 09, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     2.51 Encina Avenue [25PLN-00312]. Request for Council Prescreening for a Zoning Text Amendment to Palo Alto Municipal Code Title 18 (Zoning) Section 18.18.070 (Floor Area Bonuses) and Section 18.18.080 (Transfer of Development Rights) to Expand Floor Area and Transfer of Development Right Benefits to Category 1 and 2 Buildings on the City's Historic Inventory in the CS Zone District. CEQA Status: Not a Project. Staff Presentation   City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Planning and Development Services Meeting Date: March 9, 2026 Report #:2601-5833 TITLE 51 Encina Avenue [25PLN-00312]. Request for Council Prescreening for a Zoning Text Amendment to Palo Alto Municipal Code Title 18 (Zoning) Section 18.18.070 (Floor Area Bonuses) and Section 18.18.080 (Transfer of Development Rights) to Expand Floor Area and Transfer of Development Right Benefits to Category 1 and 2 Buildings on the City's Historic Inventory in the CS Zone District. CEQA Status: Not a Project. RECOMMENDATION Staff recommends that Council conduct a prescreening and provide informal comments regarding the applicant’s request to expand Floor Area Bonuses and Transfer of Development Right benefits to Category 1 and 2 buildings on the City's Historic Inventory in the CS Zoning District. Comments provided during the prescreening process are not binding on the City nor the applicant. EXECUTIVE SUMMARY This prescreening is a request by the applicant to expand floor area bonuses and transfer of development right benefits to Category 1 and 2 buildings on the City's Historic Inventory in the Service Commercial (CS) Zoning District. The project site at 51 Encina Avenue is a Category 2 Structure on the City’s Historic Inventory. It would be the only qualifying historic structure on the City’s inventory within this zone district with respect to this text amendment. Therefore, this text amendment would not affect any other properties unless another property in the CS District were upgraded to re-classify as a Category 1 or 2 Historic Structure. Project plans show a historic rehabilitation of the building, including improvements to accommodate four exam rooms and accessibility upgrades. In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including rezoning, prior to submittal of a formal application. Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Since this proposal may return to the City Council as a formal application, Councilmembers should refrain from forming firm opinions supporting or opposing the project. BACKGROUND facilitate. The drawings are conceptual and demonstrate how the building could be rehabilitated to accommodate modern medical office functions while preserving significant historic materials and features. Proposed improvements include installation of an accessible ramp at the rear of the structure, construction of accessible restrooms, and interior reconfiguration to meet accessibility standards and functional requirements for medical services, including exam rooms, counseling and staff areas, a waiting room, and a vitals check area. ANALYSIS this policy by expanding access to Floor Area Bonuses and Transfer of Development Rights, helping offset the financial constraints associated with rehabilitation. Comprehensive Plan Program L7.8.1 calls for expanding incentives for retention and rehabilitation in all zones and minimizing regulatory constraints. The amendment implements this direction by extending existing incentives to eligible historic resources in the CS District. Program L7.8.3 encourages innovative application of codes to older buildings, including use of the State Historical Building Code. Expanding development incentives is consistent with this approach and supports rehabilitation of historic resources. The project consists of the historic rehabilitation of the building, including improvements to accommodate four exam rooms and accessibility upgrades in conformance with the Secretary of the Interior’s Standards for Rehabilitation. This proposed work would be reviewed in accordance with the ten Secretary's Standards for Rehabilitation upon a formal application submittal. POLICY IMPLICATIONS Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Therefore, informal comments from Councilmembers would not impact policy. If a formal application is submitted, additional analysis would be required to evaluate whether the TDR program should be further expanded to additional properties. The TDR program was established to encourage historic preservation and seismic rehabilitation in the commercial downtown district. While the program was expanded in 2003 and 2007 to include select residential areas in SOFA and City owned historic properties, Downtown has remained the primary receiving area to align incentives with planned growth. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on February 26, 2026, which is 10 days in advance of the meeting. Postcard mailing occurred on February 24, 2026, which is 12 days in advance of the meeting. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Bldg 1 PAMF C_Lee Buil d i n g B_Jamplis _Building 50.0' 12 1 . 2 ' 50.0' 12 1 . 2 ' 51.8' 12 1 . 2 ' 51.8' 12 1 . 2 ' 12 1 . 2 ' 207.3' 131.9' 259.5' 12 1 . 2 ' 56.0' 12 1 . 2 ' 56.0' 100.0' 12 1 . 2 ' 100.0' 12 1 . 2 ' 50.0' 12 1 . 2 ' 50.0' 12 1 . 2 ' 938.0' 50.0' 12 1 . 2 ' 50.0' 12 1 . 2 ' 50.0' 12 1 . 2 ' 50.0' 12 1 . 2 ' 50.0' 12 1 . 2 ' 50.0' 12 1 . 2 ' 50.0' 12 1 . 2 ' 50.0' 12 1 . 2 ' 163.0' 163.0' 60 .6' 60 . 6' 137.3' 121 .2 ' 12 1 . 2 ' 50.0' 50.0' 148.2' 149.1' 12 1 . 2 ' 121 . 2' 100.0' 100.0' 12 1 . 2 ' 12 1.2 ' 121.1' 33 Bldg 1 75 63 27 29 825 841 44 81 87 51 70 67 URBA N L A NE ENCINA AV E N U E F O U N D A TIO PAMF PARKIN G STRUCTURE This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Project Site 0'86' Location Map 51 Encina Avenue 25PLN-00312 CITYOF PALOALTO I NC O R P O R A TE D CALIFORNIA P a l o A l t o T h e C i t y o f APRI L 1 6 189 4 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto sswitze, 2026-02-17 15:00:22 (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) 33 Encina Ave. Ste 103 | Palo Alto, CA 94301 | (408)907-2699 |www.peninsualhacc.org City of Palo Alto Planning Department 250 Hamilton Avenue Palo Alto, CA 94301 Request for Review of Text Amendment to Support Expansion of Peninsula Healthcare Connection, Inc. If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner-on-Duty at 650-617-3117 or email planner@paloalto.gov Project Plans In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council members for their review. The same plans are available to the public, at all hours of the day, via the following online resources. Directions to Review Project plans Online: 1. Go to: bit.ly/PApendingprojects 2. Scroll down to find “51 Encina Avenue” and click the address link 3. On this project-specific webpage you will find a link to the project plans and other important information Direct Link to Project Webpage: https://www.paloalto.gov/Departments/Planning-Development-Services/Current- Planning/Projects/51-Encina-Avenue March 9, 2026 www.PaloAlto.gov 51 Encina Avenue Pre-screening Presenter: Steven Switzer, Senior Planner 2 COUNCIL PRE-SCREENING PROCESS •Required for legislative changes, including rezonings, before a formal application. •Provides early feedback only; no formal decisions are made. •Councilmembers are expected to refrain from forming firm opinions, as the proposal may return for future formal action. 3 Expand Bonus Floor Area and Transfer of Development Right (TDR)Benefits to Historic Category 1 and 2 Buildings in the CS Zone District. CONCEPTUAL PROJECT 4 PROJECT LOCATION Adjacent Uses •Palo Alto Medical Foundation campus (North) •Peninsula Healthcare Connection (East) •CS zoned office properties (West) •Town & Country Village Shopping Center (South) Adjacent Applications •Multi-family Housing Prescreening on Town & Country’s parking lots. •Conditional Use Permit for a change of use (Eating & Drinking) at 63 & 67 Encina Avenue. 5 HISTORIC RESOURCE •Colonial Revival Architecture •Built in 1900 •Mary Greer O'Brine, daughter of Captain John and Maria Louisa Soto Coppinger Greer. •Portion of the Ranch Rinconada del Arroyo de San Francisquito, an 1835 Mexican land grant. •Listed as Category 2 in 1986 •Significance under Exploration/Settlement KEY CONSIDERATIONS 6 Comp. Plan Goals/Policies •Policy L-7.8 (adaptive reuse) •Program L7.8.1 (expand historic incentives) •Program L7.8.3 (encourage innovative preservation approaches) Historic​ Rehabilitation •Supports adaptive reuse of a Category 2 •Financial constraints due to lack of development incentives. TDR Program •Encourage and offset historic and seismic rehabilitation projects •2003 and 2007 expansions (City owned historic properties and SOFA residential) •Proximity to downtown and commercial setting. •Approx. 32,000 sf of TDRs available •Potentially generate up to 5,000 sf of TDR Limited Scope (Site Specific) •Only one (1) eligible CS property •46 unevaluated CS properties over 50 years old. 7 CEQA STATUS •No review under the California Environmental Quality Action (CEQA) is required for a preliminary review. •A full review in accordance with CEQA would be initiated with the formal filing of a development application. 8 RECOMMENDED MOTION Staff recommends that Council conduct a prescreening and provide informal comments regarding the request to expand Floor Area Bonuses and Transfer of Development Right benefits to Category 1 and 2 buildings on the City's Historic Inventory in the CS Zoning District. Comments provided during the prescreening process are not binding on the City or the applicant. STEVEN SWITZER Senior Planner Steven.Switzer@PaloAlto.gov 650-329-2321