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September 21, 1990
THE HONORABLE CIT~ COUNCIL
PALO ALTO, CALIFORNIA
Attention: Policy and Procedures Committee
Air Rights ~~idelfneB
Members of the Counc11:
Report in BrIef
The purpose of this staff report is to recommend that Council 1]
reaffirm the existing quidelines for air rIghts development over
assessment district parking lots and 2) redirect the referral of
the sUbject o.f air rights guidelines from the. Policy and Procedures
COllllittee to the Finance and Public works Comllittee~
Piscussion
At the 'Ileetirl9 of July 2, 1990, the Palo Alto City Council
considered a proposal for the priVAte development and lease ot two
additional floors of parking for the webster-Cowper Parking Garage.
The Council directed staff to proceed with the r.eqotiation of the.
lease agreement. but also directed staff to draw upon the process
related to this proposal and submit a set Qf proposed guidelines
reqardlnq air rights to the Polley and Procedures Committee.
In August 1981, Council made a sl.lIar referral to the Polley and
Proce.dures Committee. That referral occurred subsequent t.o ccuncil
discussion ~f an air rights proposal for city parking lots S and L.
The Committee. decided that it was Infeasible to aevelop additional
guIdelines for air rights projects, however, and, in November 1988,
Council concurred with the recommendation of the policy and
Procedures Committee and deleted: the assignment from the list: 0,(
referrals. Staff report CXR:53C:B (November 17, 1988), attached to
this report, provides the rat.lonale.
The questions which arose d-urlnq Councl1 l s discussion of the
Webster-Cowper Parking Garage air rights pr~sal cause staff to
belIeve that it would be appropriate to incorporate an air rights
polIcy into the Cityrs real property asset management policy. The
latter is presently a work item for the Finance and Public Works
cOlIIlIittee.
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,.. a bad. for that policy devolopment, staft requests that council
XBJlbers review the existing \I1l1deUnes which were a.septad by
council in 19S0 and either reattira thea or provide direction for
a.menclment. The quidelines are part of the attachment 'to this staff
report.
2 8 cop·ndltripD
Staff recommend. that Council.
1)
2)
reaffiZ'1l the \I1lideline. for air ri9bts development over
assessment district parUng lots orIginally a.septed by the
palo Alto City Council 1/'/80, and
redirect the referral ot the issue of air rl<;hts quidelines to
the Financ .. and Public Works Co..,.itte ••
Respectfully submitted,
VJc.b.:-~
VICCI RtlOIN
sistant:
P.elated CMRs: CKR:S3t.a
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November 17, 1988
THE HONORABLE CITY COUNCIL
~lo Alto, California
Polic and Procedures CommIttee ~~eommendation Con~ernjn coun~il
Referral 0 Al~ Ri9 ts Issue
~e~bers of the COuncil:
At its Cctober C, 1988 meeting, the Policy and Procedures Commit
tee reviewed the ootsundin.g IssiQ.nI!1"nts .."hieb had been referred
to t1'Je C::Ommittee by COun-cil ..
Amon.g the referrals W!lS the issue of air rights.. On August 10,.
1~87, as a result of its consideration. of a pcoposal for senior
housin'9 and Dll!ll ti-use development Oil Ci ty pa [king lots S and L,
the (buncil approved the follo ... ing .motion:
F:efer th.e policy questions re the issue of air rights to
the Policy and Procedures Committl!!eJ and refer the
questions of .. nat to do with the pcoceeds to t.he Fitlance
and Public Works COmmittee with t..,o l=Covisions: I) tnat
this not be a priority item; and 2) that st.aff wort be
lo;!pt t.o. !I minimum for the ne:l t six mooths to. a year.
Shortly after the Council referred tfle issue, the project pr:-o.
ponents withdre ... t.heir pt'oposal. Staff has advised the Policy and
Procedures COmmittee that it wocld be difficult, and pcobably not
productive. to condoct. the study of air rights in the absence of a
pcoposed project ..
On January 7, 1980,. in advance of negotiating the agreement for
the air t'igflts developmen t over Parking Lot 0 .. tne Council adopted
guidelines for air rigbts development over assess.ment district
parling lots. (See Attachment I.) These ~uidelines have peoved
to serve as a l\Odel for other jurisdictions evaluating air rights
pt'ojects. Staff bel ieves that a.n effort to go beyond these guide
lines to develop more specifiC' parameters is not advisable; to do
so fligbt actuall y di scour-age innova tive proposal s from wh ich the
City could benefit ..
To r-emove this i tel! froll!. the referral s to the Pol ic y and Froce
cures Committee infers that the subsequent study for consideration
by the Finance and Public Works COmmittee should also be deleted ..
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~ecommfmda tion
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The Policy and Procedures Cbmadttee recommends to the City Council
that it delete the assignment rf:garding Ktoltf-Dse developments on
~rting lots $ and L from the p,p (bmmittee agenda.
Jleepect felly sub«! i t.ted,
e Ci ty Planager
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(0 Attachment I (0
GUIDEliNES fOlt AlR RlC!!TS D£YElO~NT OvEl ASSESSllENT DISTRICT PARKING lOTS
AOOPT[D IY PAtO Al.1O till COUNCIL 1{1/1O
I. Air lights Shavl" be ~ ... loJl4!" prllllrll, for hovslag f. ref .... nc. to th.
ComprehensIve PI.ft Ravs!n, Prcgr .. II. .
2. AIr Ilgltts prOjects w111 be evahated on the b .. ts .f ""blfe benefit. to be
proyl"~ (low-~er.te Income hevsln,. 1""ltlo •• l public parll.g. "nergy
conserv.atfon .. etc.) .. -<.
3. The aIr spIce ~ ... l.;J11e"t ,hovU be c:ocpatlble. of.vl11, ."" functionl11l'
vftlo. the surroul\Q'iag nes.
4. The ""5fgn plan ""euld be "".table and ""oull mftfgate "!laU .. i<>P4cts of
the surfact use on the I;rsp.c. ws ••
S. The Ifr sp.ce develoJllTlent sIIo.ld ""t subst.nttalll' ~U(e tllo present
utllftJ'. i~p.lr the operation. or conflIct with recognlz~ long-tono needs of
the pri"o., (surfact) use.
6. Afr rights vIII be alnveyee! b, leng term Te.se ""ere possible but sale of .Ir
rlgllts Is not .... Iee! out.
I. An Independent appraisal of tbe ralue of Ilr rights will be obtained and
el{u·pt. in unu'Sul cfn;l,j/Ilstances. the City vi 11 seel: cQI;Ipetftfve bias ...
8 •. SI9.,lflc.nt ext"erdinary public benefits (provfslon of addHlenal publ ie
pa.ilag. belew market r.te hoysfng unfCs .be.e the requfred nuobor _tc.) will
be cDn$fde~ed ~eR deteminfDg compensatlon t; the (it1 fOr 5ale or 7eas! gf
.fr rights.
9. "'pp1fc.Uons for AIr Ifghts proJects sbeyld In<lude:
... ,. d!'scrfptfon of the proposed' facilfty. site plans. eTentlClrls. outline
of specffic.atfons .. structural slstems. types 01' gatt!rllls. provosra I.'SeS
(Includfng price strocCoTO of housing units). prelH>ina'1 estiR.to .r
capft.1 InvestJnent. and tfOle-t.bl. for e","pl_tlon;
'boo stltement cf developer's pertf7'lent eJ.perfence.
C. dest.rfption of negative fm.pacts an the surfa{f! use durini col'tstrocUcti.
Including ~ropos~ ~ftigatjon ~easures.
6. Konortlfc feasibUftl analysis .. incl ~dfn9 proposed finantlng arr"angement.
proposed lo.se to"", and prell"ina'1 esUm.tes af tbe ral .. Dr He .fr
rf g~' s ancl .
e. 'proposed property lIahitenanc.e and f.Asuranc:e prosr.lllll.
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