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HomeMy WebLinkAboutStaff Report 2604-6210CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, April 20, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     10.4075 El Camino Way [23PLN-00202]: Recommendation to Decline Adoption on Second Reading of an Ordinance Adopting an Amendment to a Planned Community Ordinance (PC-5116) to Allow for Modifications to an Existing 121-Unit Assisted Living and Memory Care Facility. First Reading Adoption was on March 16, 2026. CEQA Status: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15301 (Modifications to Existing Facilities). Supplemental Report Added CITY COUNCIL Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: April 20, 2026 Report #: 2604-6210 TITLE 4075 El Camino Way [23PLN-00202]: Recommendation to Decline Adoption on Second Reading of an Ordinance Adopting an Amendment to a Planned Community Ordinance (PC-5116) to Allow for Modifications to an Existing 121-Unit Assisted Living and Memory Care Facility. First Reading Adoption was on March 16, 2026. CEQA Status: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15301 (Modifications to Existing Facilities). RECOMMENDATION Staff recommends that the City Council: 1. Decline to adopt the second reading ordinance allowing the application to be withdrawn as requested by the applicant. BACKGROUND On March 16, 2026, the City Council held a public hearing and, after reducing the number of new units on the site from eleven to seven, approved the project and planned community ordinance on a 7-0 vote. On March 30, 2026, Planning and Development Services received written notice from the applicant's representative withdrawing the subject application. In light of the Council’s action reducing the scope of the project to seven units, the applicant is no longer interested in moving forward. In light of this request to withdraw the application, staff recommends that the City Council decline to adopt the attached ordinance on second reading. As an alternative to the staff recommendation, three councilmembers may pull this item from the consent calendar to schedule a hearing. An agendized hearing would afford the City Council an opportunity to reconsider its prior action. Attached to this report is the draft planned community ordinance reflecting the City Council action from March 16, 2026. A link to the prior report and background information is available online.1 ATTACHMENTS APPROVED BY: 1 March 16, 2026, City Council staff report agenda item 13 is available online at: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86819&dbid=0&repo=PaloAlto *** NOT YET APPROVED *** 0160182_20260407_ay16 1 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Amend PC Planned Community Zone (PC-5116) to Allow an Addition to an Existing Senior Assisted Living Facility The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. On March 21, 2011, the City Council adopted Ordinance No. 5116, creating PC Planned Community 5116. B. On August 9, 2023, Irwin Partner Architects on Behalf of Wellquest Living submitted an application for an Ordinance Amending Planned Community Zone District 5116 (PC-5116) to allow a 16-Unit addition and 172 square feet of support space to an existing 121-unit Assisted Living and Memory Care Facility (the “Project”) at 4041 and 4075 El Camino Way (the “Subject Property”). C. Following Staff Review, the Planning and Transportation Commission (“PTC”) reviewed the project on February 28, 2024 and June 12, 2024 and recommended the project to the Architectural Review Board. D. The Architectural Review Board reviewed the project on July 18, 2024 and October 17, 2024; and recommended approval of the project to the City Council. E. The PTC reviewed the project on December 11, 2024 and moved to advance the project to Council, recommending approval of only the seven units which do not face Wilkie Way and denial of the nine units and ground floor office space which faces towards the neighborhood. The motion also recommended returning the Transportation Demand Management plan to the PTC for approval, revising the Findings to reflect the PTC’s recommendation, and removing consideration of past public benefits from the PC Ordinance. F. The City Council reviewed the project on May 5, 2025 and May 27, 2025 and moved to refer the project back to the PTC with direction that the project be reduced to 11 to 13 units, eliminating third floor units facing Wilkie Way. G. The PTC reviewed the project again on September 24, 2025 and recommended approval of the project with additional revisions, including a reduction in the project scope to seven new units. H. Approval of the Planned Community Project would constitute a project under the provisions of the California Environmental Quality Act of 1970, together with related state and local implementation guidelines promulgated thereunder (“CEQA”). *** NOT YET APPROVED *** 0160182_20260407_ay16 2 I. The City is the Lead Agency pursuant to Public Resources Code section 21067 as it has the principal responsibility to approve and regulate the Planned Community Project. J. The City, in compliance with CEQA, determined the project to be Categorically Exempt from CEQA per Section 15301 of the CEQA Guidelines (Existing Facilities). K. The Council is the decision-making body for approval of the Planned Community Project. L. The site is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow the proposed development. Specifically, the project modifies an existing Planned Community Project (PC 5116) and includes 11 additional units, beyond the 121 units approved in ordinance 5116, and associated modifications to the development plan in accordance with this change. M. Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts, as set forth in Section 6 of this ordinance. N. The use or uses permitted, and the site development regulations applicable within the district are consistent with the Palo Alto Comprehensive plan, and compatible with existing and potential uses on adjoining sites or within the general vicinity. SECTION 2. Amendment of Zoning Map. Section 18.08.040 of the Palo Alto Municipal Code, the “Zoning Map,” is hereby amended by changing the zoning of the property formerly zoned as PC Planned Community Zone 5116 from PC Planned Community Zone 5116 to “PC Planned Community Zone _____”. SECTION 3. Project Description. The Project as a whole is described in the Development Plan titled “PALO ALTO COMMONS Wellquest Living” and uploaded to the Palo Alto Online Permitting Services Citizen Portal on October 16, 2025, and as modified by the City Council on March 16, 2026. Specifically, only units one through four and nine through eleven are approved; the other proposed new units depicted on the plans are not approved. The Development Plan and approved supplemental materials and conditions included as part of Ordinance 5116 and Ordinance 3775 are incorporated into this ordinance by reference. With respect to the Subject Property, the Project comprises the uses included in this Ordinance, depicted on the Development Plans as modified by the City Council, incorporated by reference, including the following components: (a) Modifications to an existing 121-unit assisted living and memory care facility, approved as part of PC Planned Community 5116. The additions would include construction of seven additional assisted living units (approximately 3,958 square feet). SECTION 4. Land Uses. (a) The following land uses shall be permitted: *** NOT YET APPROVED *** 0160182_20260407_ay16 3 1. Senior Housing; 2. Eating and Drinking Services for use by residents, employees, and their guests; 3. Personal Services for use by residents, employees, and their guests; 4. Retail Services for use by residents, employees, and their guests; 5. Recreational Facilities for use by residents, employees, and their guests; 6. Administrative Offices for administration of Palo Alto Commons; 7. Medical care for residents as is customarily associated with senior assisted living facilities; and 8. Accessory Uses. SECTION 5. Site Development Regulations and Development Schedule. (a) Development Standards: Development standards for the Subject Property shall be those conforming to the Development Plan. (b) Parking and Loading Requirements: The Owner shall provide parking and loading as set forth in the Development Plan and Parking Management Plan, entitled “Parking Study & Parking Management Plan for Palo Alto Commons at 4075 El Camino Way in Palo Alto, California,” uploaded to Accela on April 9, 2025. The existing 97 spaces on the property shall be maintained and the Owner shall implement all modifications to the Parking Management Plan required by the Record of Land Use Action for the Project (RLUA No. 2025-XX). (c) Modifications to the Development Plan, Land Uses and Site Development Regulations: Once the Project has been constructed consistent with the approved Development Plan, any modifications to the exterior design of the Development Plan or any new construction not specifically permitted by the Development Plan or the site development regulations contained in Section 5 (a) – (b) above shall require an amendment to this Planned Community zone. Any use not specifically permitted by this ordinance shall require an amendment to the PC ordinance. (d) Development Schedule: The Project is required to include a Development Schedule pursuant to PAMC §18.38.100. The approved Development Schedule is set forth in the Applicant Project Description Letter, and anticipates commencing in April 2025 and concluding in October 2026. *** NOT YET APPROVED *** 0160182_20260407_ay16 4 Construction of the project shall commence within two years of the effective date of this ordinance. Prior to expiration of this timeline, the Owner may seek a one year extension from the Director of Planning and Development Services. SECTION 6. Public Benefits. (a) Public Benefits: Development of the Project Site under the provisions of the PC Planned Community District will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts. The public benefit provided by the Project is providing a safe place for Palo Alto residents and other seniors to age and making improvements to the existing facility to expand and improve these services. (b) Monitoring of Conditions and Public Benefits: The Applicant shall be responsible for reimbursing the City for all costs incurred in connection with annual compliance inspections and any code enforcement–related activities associated with this approval that occur outside of the annual review process. Such reimbursement shall be provided either through the placement of a deposit or by payment on a time-and-materials basis, as determined by the Director of Planning and Development Services, in accordance with the Palo Alto Municipal Fee Schedule in effect at the time the costs are incurred. If conditions or benefits are found deficient by staff, the applicant shall correct such conditions in not more than 90 days from notice by the City. If correction is not made within the prescribed timeframe, the Director of Planning and Development Services will schedule review of the project before the Planning and Transportation Commission and Council to determine appropriate remedies, fines or other actions. SECTION 7. Environmental Review. The project would not result in a substantial expansion of the current use and is therefore eligible for a categorical exemption from CEQA under Section 15301 of the CEQA Guidelines (Existing Facilities). // // // // // // *** NOT YET APPROVED *** 0160182_20260407_ay16 5 SECTION 8. Effective Date. This ordinance shall be effective on the thirty-first day after the date of its adoption (second reading). 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 From:Charlene Kussner To:Raybould, Claire Cc:Steve Sandholtz; Stephen Reller; Daniel Bowman Subject:RE: 4075 el camino way, Withdrawal of Application 23PLN-00202, Amend PC-5116 Date:Monday, March 30, 2026 10:51:17 AM Attachments:image001.png image002.png image003.png CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. Good morning Claire, please have this email be confirmation from the owner of 4075 El Camino Way, Palo Alto Commons, to withdraw the application PLN-00202 to amend PC-5116. The owner is no longer pursuing this entitlement and will not be building any additional units to Palo Alto Commons. Any conditions approved at City Council hearing dated 3.16.26 no longer apply. PC-5116 conditions remain in force, and we will continue to adhere to. Please let me know if this is sufficient, or additional information is required. Thanks to you and Emily for supporting this project. Charlene Kussner | V.P. of Development & Asset Management charlene@wqliving.com C: 951.757.2571 Corporate Office: 185 South State Street, Suite 1300, Salt Lake City, UT 84111 CA Office: Wellquest of Menifee Lakes, 29914 Antelope Road, Menifee CA 92586 “All that I have seen teaches me to trust the Creator for all I have not seen.” Ralph Waldo Emerson THIS MESSAGE CONTAINS CONFIDENTIAL INFORMATION AND IS INTENDED ONLY FOR THE INDIVIDUAL(S) NAMED. IF YOU ARE NOT THE NAMED ADDRESSEE(S) YOU SHOULD NOT DISSEMINATE, DISTRIBUTE OR COPY THIS E-MAIL. PLEASE NOTIFY THE SENDER IMMEDIATELY BY E-MAIL IF YOU HAVE RECEIVED THIS E-MAIL BY MISTAKE AND DELETE THIS E-MAIL FROM YOUR SYSTEM. E-MAIL TRANSMISSION CANNOT BE GUARANTEED TO BE SECURE OR ERROR-FREE AS INFORMATION COULD BE INTERCEPTED, CORRUPTED, LOST, DESTROYED, ARRIVE LATE OR INCOMPLETE, OR CONTAIN VIRUSES. THE SENDER THEREFORE DOES NOT ACCEPT LIABILITY FOR ANY ERRORS OR OMISSIONS IN THE CONTENTS OF THIS MESSAGE, WHICH ARISE AS A RESULT OF E-MAIL TRANSMISSION. IF VERIFICATION IS REQUIRED PLEASE REQUEST A HARD-COPY VERSION. COPYRIGHT 2018. ALL RIGHTS RESERVED BY WELLQUEST LIVING,LLC, AND ITS AFFILIATES. From: Raybould, Claire <Claire.Raybould@paloalto.gov> Sent: Monday, March 23, 2026 2:15 PM To: Charlene Kussner <charlene@wqliving.com> Subject: RE: 4075 el camino way [EXTERNAL EMAIL] Yes of course. I’ll send an invite for 30 minutes though I don’t think we need that long. Feel free to forward to whomever else on your team you’d like to have attend. Claire From: Charlene Kussner <charlene@wqliving.com> Sent: Monday, March 23, 2026 1:13 PM To: Raybould, Claire <Claire.Raybould@paloalto.gov> Subject: RE: 4075 el camino way CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. Can we do Wednesday? Charlene Kussner | V.P. of Development & Asset Management charlene@wqliving.com C: 951.757.2571 Corporate Office: 185 South State Street, Suite 1300, Salt Lake City, UT 84111 CA Office: Wellquest of Menifee Lakes, 29914 Antelope Road, Menifee CA 92586 “All that I have seen teaches me to trust the Creator for all I have not seen.” Ralph Waldo Emerson THIS MESSAGE CONTAINS CONFIDENTIAL INFORMATION AND IS INTENDED ONLY FOR THE INDIVIDUAL(S) NAMED. IF YOU ARE NOT THE NAMED ADDRESSEE(S) YOU SHOULD NOT DISSEMINATE, DISTRIBUTE OR COPY THIS E-MAIL. PLEASE NOTIFY THE SENDER IMMEDIATELY BY E-MAIL IF YOU HAVE RECEIVED THIS E-MAIL BY MISTAKE AND DELETE THIS E-MAIL FROM YOUR SYSTEM. E-MAIL TRANSMISSION CANNOT BE GUARANTEED TO BE SECURE OR ERROR-FREE AS INFORMATION COULD BE INTERCEPTED, CORRUPTED, LOST, DESTROYED, ARRIVE LATE OR INCOMPLETE, OR CONTAIN VIRUSES. THE SENDER THEREFORE DOES NOT ACCEPT LIABILITY FOR ANY ERRORS OR OMISSIONS IN THE CONTENTS OF THIS MESSAGE, WHICH ARISE AS A RESULT OF E-MAIL TRANSMISSION. IF VERIFICATION IS REQUIRED PLEASE REQUEST A HARD-COPY VERSION. COPYRIGHT 2018. ALL RIGHTS RESERVED BY WELLQUEST LIVING,LLC, AND ITS AFFILIATES. From: Raybould, Claire <Claire.Raybould@paloalto.gov> Sent: Monday, March 23, 2026 11:50 AM To: Charlene Kussner <charlene@wqliving.com> Subject: 4075 el camino way [EXTERNAL EMAIL] Good morning Charlene, I had a chance to discuss council’s motion with our attorney further and I’d like to connect further with your team regarding options and next steps given the Council meeting last week. Do you have time for a quick call either at noon or 2pm today? Ot Wednesday at 1pm (I’m free until 1:30)? I think we only need about 10 minutes and then you can take that information to your team and get back to me about how you’d like to move forward. Claire Claire Raybould, AICP Manager, Current Planning Planning and Development Services Department (650) 329-2116 | Claire.Raybould@paloalto.gov www.cityofpaloalto.org Parcel Report | Palo Alto Zoning Code | Online Permitting System | Planning Forms & Applications | Planning Applications Mapped Item No. 10. Page 1 of 1 9 8 1 4 City Council Supplemental Report From: Jonathan Lait, Planning and Development Services Director Meeting Date: April 20, 2026 Item Number: 10 Report #:2604-6256 TITLE 4075 El Camino Way [23PLN-00202]: Recommendation to Decline Adoption on Second Reading of an Ordinance Adopting an Amendment to a Planned Community Ordinance (PC-5116) to Allow for Modifications to an Existing 121-Unit Assisted Living and Memory Care Facility. First Reading Adoption was on March 16, 2026. CEQA Status: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15301 (Modifications to Existing Facilities). RECOMMENDATION Staff recommends that the City Council: 1. Decline to adopt the second reading ordinance allowing the application to be withdrawn as requested by the applicant. BACKGROUND The published report for the subject item incorrectly stated three votes were required to pull the second reading ordinance from the consent calendar; four votes are required. This provision is set forth in the City Council Procedures and Protocols Handbook Section 3.8 (f). ATTACHMENTS None APPROVED BY: Jonathan Lait, Planning and Development Services Director