HomeMy WebLinkAbout0103.092-
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ThiS item.""'s sc~eduTed for the
~ ... January ~ 1992 Ci ty Council meeting.
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January 2, 1992
HONORABLE CIT~ COUNCIL
Palo Alto, C41ifornia
H<Ibel."s. of the Counc i 1 ~
.eport fA Bri.f
This report recommends that Council 1) accept the property located
at 351 Homer and )c.nown as the Rhona Williams property; and 2)
direct staff to prepare a Request tor Proposal (REP) for an option
to lease the site and return to council for approval of the RFP.
Baekqrouru'
In Auqust 1989, the City was notified that Rhona Williams had
willed her property located at 351 Homer Avenue, Palo Alto, to the
City ot Palo Alto ($~e attached site map). In March ~991, probate
was completed. At that time, city inspection of the site revealed
the existence of an underq~ound gasoline tank~ On July 1# 1991,
Council approved a Sudget Amendment Ordinance for the. purpose of
paying fer an investigation of the site to determine c~sts of ta~J(
removal and cleanup, if any. Follo,.ing the investigation, staff
'Was to return to CO·...I.r.cil with the results and a recommendation as
to whether the city should accept the site, as well as a procedure
to determine the ultimate use of the property.
Term_ of tb. will
MS. williams# ... ill provides that the property "shall be used for
park and cultural purposes and shall not be sold by the [City], nor
leased by it for any parking lot or other purely commercial
venture.-In her-'Will, Ms. Williams also recon.mended that the City
consider one or more of the following uses: 1) a general science
library; 2) a park; or 3) a center for cultural purposes. She
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further Buggested that as many of the eAistinq trees as possible be
retained on the p~operty and that the land surrounding any building
be maintained as a small park. The ~ill also requires that the
property be named as a memorial to Ms williams' parents~ Dr4
Thomas M. Williams and Dora Moody Williams.
The City Attorney/s Office has interpreted the language of the will
to mean that the property must be used for park or cultural
purposes, or some combination thereof. In addition, the use must
also generally have a public purpose or be~F.fit. The definition of
park use under the case law is very broad and varied, but it ::lust
be one that furthers the public'S recreation or enjoyment of the
land and is not limited solely to use by particular individuals or
groups. CUltural use is not legally defined under case law, ?ther
than as commonly defined in the dictionary.
Should the property not go to the City of Palo Alto for any reason,
the property will qo to Wells Fargo Bank, in trust, with the
rem~inder of the estate. The net inccme of the trust will 90 to
certain individuals named in the 'liill, 'With the balance of the
income to the National Audubon society, Inc ..
Site and Xaprov~.pts
The property consists of two parcels (see ateached site map). The
west lot, on Which the main building is located, is 100' by 210'
and the east lot is 50' by 180'. Total land area is 30,000 square
feet (~69 acres). Both parcels are currently zoned multi-family
residential (RM-30). The property contains a home which was built
in 1907 and which is listed as a Category 2 Histo~ic Building on
the City'S Eistoric Buildinq Inventory. The house is two stories
with a babita~le floor area of approximately 1,815 square feet and
a basement of 600 square feet. The basement houses an oil-fired
furnace and water heater. There is a single-story east wing
addition of 807 squ~re feet, Which served as a medical office, but
'iihich has been unoccupied for rr.any years. There is a detached
garage and carport located at the rear of the property.
The building is an R-) Occupancy, Single Family D\rrellinq, according
to the Unirorm Building Code. Conversion to other uses, such as
office, museum, etc~~ will require that the struct~re be upgraded
to meet current code requirements. This would include structural
improvements, handicapped access, etc.; however, the Historic
Building Code could modify some code requirements. This would be
similar to the conversion of the Gamble House.
Staff inspections and a termite re.port indicate that the main
building is in good condition, considering its age. The detached
garage, ho~ever. is full of dry rot and the walls rest directly on
the soil. This structure is in need of major repairs or it must be
demolished~ The landscaping has not been maintained for yea~s and
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is overgrown with weeds ~nd in need of prunir.;.
a.,uit. of lnv •• tiqatioD
The soils and tank investigation conducted by Wahler Associates
concludes that:
1) Hydrocarbon vapors and approxi~ately 4 inches of product
remain in the ~~dergrounQ storage ta~;
2) 1:0" levels of oil and qrease 'Ware detected along the
underground pi~eline associated with the above-qro~nd
home heating fuel tank; however, they are insignificant
and, t.herefore, oil and grease reltieaiation does not
appear necessary;
l) Low levels of toluene were detecteQ along the peri~eter
of the underground tuel tank, which suggests that some
release from the underground fuel tank might have
occurred. To verify the source, visual inspection of the
underground tank and additional soil samples beneath the
tank will be required. A soils/groundwater investigation
cculd be require.d at the site, after removal of the
underground storage tank. It" discovered directly beneath
the tank, the loW" toluene levels detect~d during this
investigation could result in a regulatory agency request
for soil/groundwater investigation.
Due to uncertainty as to whether tl:le underground tank has been
filled with concrete slurry fill, Wahler has provided two estimates
of tha probable cost to remove the underground tank! 1) $12,000 if
the tank is not filled with slurry, 2) $ 19,000 if it is filled.
These estimates do not include any remediation that could result if
toluene is discovered beneath the tank.
Zoning/Historical Designation
The property is zoned RM-30, medium density multi-family residen
tial. In addition to residential, permitted uses ~ithin this zone
include residential care hoces, day care homes and lodqinq.
Conditional uses include churches, community centers, day care
centers, neighborhood recreational centers, and priv~te educational
facilities.
The bouse is an Historic category 2 structure, ~hich is considered
significant, in the city's Building Resources Inventory. According
to the Inventory, this modified Tudor revival house is one of two
known Palo Alto designs by Ernest Coxhead, an important Bay Area
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~rchitect of that period. Attached is a copy of the Inventory data
on thG property (Attachment A).
At its meeting on November 20, 1991, the City'~ Historic Resources
Board unanimously passed a motion recommending that the city
council 1) accept the Rhona Williams property j and 2) hire a
qualified historic cons l..l.ltant to evaluate the property.
~iOZl to 1. ••••
The property and house are. in generally good condition and have the
potential for use which vould meet the requirements of the will and
benp.fit the City and community. Although the City at present does
not have either the need or financial capability to use the site
and assume the costs of improvement, mainte.nance and operation,
private groups in the community have indicated an interest in using
the site~ Should the Council accept the property, staff recommends
that the property be disposed of under a long-term lease to a
private group or orqanization ~hich could maintain, improve and
operate the property tor a. use 'Which would both fit the strict
requirements of the will and benefit the City and community as a
whole. The private ~'oups which have already indicated an interest
in the site are listed in Attachment B. Staff has not determined
~hether any of the listed organizations would ultimately use the
property according to the will's restrictions, i.e., for park
and/or cultural purposes. In order to determine a use and tenant
for the site and in accordance with the City's policy for the
leased use of City land and faCilities, staff proposes the city
issue an RFP for an option to lease the site. The option to lease
offered in the proposed RFP 'Would include, in addition to the
City'S standard lease proviSions, the following major elements:
Lease terms:
The lease term 'Would be for 20 yearsj the rent is a bid item and
could include both monetary and non-monetary/public benefit
consideration. The tenant would be respons~ble for all site
improvements and maintenance (including all of the tank removal
costs and any necessary cleanup costs), would pay all utilitias and
provide insurance coverage as required by the City's Risk Manaqer.
Option Terms:
The option period would be for t~o years. during which time the
optionee would be required to do the following prior to exercising
the option: 1) receive City approval of any required zone change
or conditional use permit required for the proposed usej 2)
recei ve approval of any proposed improvement and or landscaping
plans from the Historic Resources Beard and the Architectural
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Review Board and obtain all necessary City building permits or any
other permits required to develop or operate the proposed use; 3)
satisfy the City Man~ger that sufficient monies will be available
to implement the plans approved by the City and complete the
proposed construction; 4) submit to the City L~E security deposit
required by the lease; and 5) reimburse the city for the cost of
the soils investigation in the amount of $7,850.
In ad.dition to the Option to Lease, the RFP will include the
follo~inq information and requirements:
1. The RFP will include a description of the historically
significant features of the grounds and the exterior and
interior of the house, and also will incllJde requirements and
guidelines that the City will require for the preservation and
maintenance of the property~ To determine these requirements
5nd quidelilles, staff recommends the City contract with an
historic preservation specialist to conduct an evaluation of
the hist~T.ic merits of the building and grounds, which would
then be reviewed by the City's His,toric Resour-ces Board.
Costs of such an evaluation will vary depending upon how
comprehensive and detailed it is. An adequate study could be
done for under $3,000.
2. The RFP will include a description of the improvements and
repairs required to be performed by the successful proposer,
and cost estimates for the work required. In addition to the
termite work ~hich is estim~ted to cost $5,000, and the tank
removal which is estimated to cost $12,000 to $19,000, the
required improvements will include those items on Attachment
C which are estimated to cost $63,000 (if the detached garage
is demolished} to $88,000 (if the garage is preserved). This
list of improvements is based on the assumption that the City
will require that changes to the envelope and form of the
house be kept to a minimum, that the floo~s and wood casework
and cabinetry he presen.·ed and that the gardens be r~stored.
Total required improvements are estimated at this time to be
$80,000 to $112,000.
J. Proposers ~ill be required to submit a plan for the care and
maintenance of the grounds and house (interior and exteriorJ
during the period of the option~ This would be a bid item
along with the proposed consideration (monetary or non
monetary) .
4. Proposers will be required to explain how the proposed use
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~eets the restrictions on the use or t~e property under Rhona
williams' ~ill and provides public purposes or b~nefit~
5. proposers will be required to provide the information outlined
on pages 2 and 3 of the Policy and Procedures Manual, 1-11
(Attachment 0) and consideration will be qiven to this
infot'lllia'tion in evaluatin7 the proposals. Briefly summari.zed,
this information includes: 1) the extent to which the
proposed use satisfies a public need; 2) the ~nsistency of
the proposed use with City g~als and objective£ as set forth
in the Comprehensive Plan a~ zonlnq ordinance; 3) the impact
of the proposed use on the neighborhood, cOl!Ufluni ty, and
environment; 4) t...'le deqree of public access and fees to be
charged to Fa 10 Al to c1 tiz ens; 5) the monetary and nor.:
monetary consideration to the City; and 6) the history and
assessment of the proposer's ability to carry out the con
struction and operation of the facility and services as
proposed.
Eyaluation'of Proposals
Proposals submitted in response to the RFP would be evaluated by a
committee consisting of city staff from Plannin9~ Community
Services, Real Estate and a member{s) of the Historic Resources
Board. The EValuation Committ~e's recommendation for a successful
proposer would be forwarded to the City Council for review and
approval.
The estimated time schedule for the RFP process is as follows:
January/February 1992: Conduct evaluation of historically
significant features and prepare RFP.
March 1992: Hold a public he~ring as required under Policy and
?rocedures 1-11(0) (1) (b); return to Council for
approval of the RFP and, if approved, begin
solicitation ot proposals.
May 1992: Proposals due.
June 1992: Return to Council with recommendation for the
successful proposer; award the Option to Lease.
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~i .. t14 18teriz Costs
Closinq costs and title insurance c~nn~cted ~ith the acquisition cf
the Rhona Williams site are estimated to be $4~ 000. Interim
maintenance of the property during the period between the city's
accepta.nce of the property and the I'J:ward of the Op-t:.ion to Lease
consists of a clean-up of t~e grounds and lrIonthly maintenance.
Estimated cost of this maintenance for a six-month period (maximum
estimated period between city acceptance and award of the Option)
is $4, 000 ~ ~e estimated cost of the historic evaluation is
$3.000.
The Budget Amendment Ordinance approved by Council on July 1~ 1991
transferred $20,000 to the Real Estate contract Services Account to
provide funds for the soils and tank investigation ~ The-actual
cost of the investigation was $7,850, leaving a balance of $12.150~
staff proposes to use this money to cover the above costs estimated
to total approximately $11,000.
lteCoM'r,;,dation
The Rhona Williams property is a v~luable asset in terms of its
historical siqnificance and potential tor a use to benefit the City
and community. One way for the City to be able to accept the gift
of this property, defray costs and still provide a community
benefit is to find a long'-tel."1D. tenant for the site as described
above. Council should be aware that it is possible that th~ City
wlll not find a suitable tenant to aSSl,lme the costs of the site
based on the restrictions on the use of the property under the
will. However, the interest of local community qroups and
organizations in using the property indicates chances are geed that
a suitable tenant can be found.
Staff recommends that C04ncil 1) accept the Rhona Williams property
and improvements located at 351 Homer and authorize the City
Manager to sign any docurr.ents necessary to finalize the propertj'
transfer; and 2) direct staff to prepare an RFP tor an option to
lease the site which includes the conditions and requirements
outlined above.
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Respectfully submitted l
C);J,~. -n U'A-~-v~
JANET FREELAND
Financial ~~alyst
[-/~~
EMILY HARRISON
Director of Finance
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WILLIAM Z~:ER
City Manager
cc: Gerard Wagstaffe l Execut.or of the Estate of Rhona williams
Historic Resources Board
Groups 11sted in Attachment 8
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~STORIC RESOURCES INVENTORY ,.,--'-'.
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, H,,10"" 11.11"". If 10"('\,,,,": __ ~~'~;-,'c'L':" ae.::-'.wHlJ,P"" • .,'"'---_________________________ _
Cdy __ • :.P:::.:::l::o_A:::l"t:.o~ ______ _ ZtP: ____ _
Ad dr en: __ "5.".-",0,-_
C,n,.: z:p _____ _
S ~r"" SCt'1.: Use: __ -1?~' '~5~'g"J·~;;t:;l.,·:'· .o'l' ______ _
Ol~ PJll U~$: ___________________________________ ___
DESCRlflTION
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6, BI'I:'II.,. d~r'bf: the pre~l:'nl pr.ys,t:.Ool oiDPufiIor{-cf of tt;1! $,tl:' or $1rlJC'tlJ'~ .and dt1oC,ib4! '''y 1T ... jQI J!ltfit,Or'l', :IO~ ,n C"'il'''''.:
cu .... dll;"r.~
Thb re:5trained Tudor Revival hOUliie de..--ives its visual interest !~ the
~tra.ight-ro;nf&rd 'but sculptural qu.a.1itie:!J of ita .iT!ter:!Jeeting !ortn!!!.. The
grounds &r~ he..rvily l.and!lcaP.ed ~ The b-illdil1g is on& or two lc1.own 1Iu..-nv:i.rJg
Pale Alto de5ign~ by a ve~./ ~rta.nt Bay-Ari!!& architeet. 'lb. wing &O"'Oel!l
-tro.a:l the:. reCeB8ed loggia va'S designed to prcV1ci.e an orrlce, reception roar.,
labora"tot"j', and e-.:rgery for the grl~ .... ~ owner, Dr .. 'lhomae :!.. 'W1.l.l.i.e.l::J8. '1h1!!
,gabled. roofed tvo-eto17. !.'tl"Ucture :is eurfa:ed. 1:l stucco.
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8. Appro;o; imate cro Pl!fty ,in:
lol ".toe: in ~il'tl) F'Q!'I~ag~ , 00
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II. No lonr;t': ,,, u'II~"ce ~
, 1. SutrOU"Cln~: iCht-cil more til'" O!Hli II neuua:,'1
I. QP'I!" l.and 0 tl. 5citlfUt'd bUllch"gl
c.. Oefllelv ~lll-uC 0
~. Ccmmlllc'oiT [!} t Indl,lnn~1 [)
, Olner 0 ____________ _
12 Th,un 10 IUe
3. Nor." kno"" .. ,
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c, U.,krownl Cl
tI. fst,;NIIe<i [1
"-r,e st Coxhead
B.Il;', I ~J b. C:arn,,'Qoe "o-..:~ 0 c. Qutnou. Ll
II Wolr~rtCWt'l'lt"nkl'l(ll.lse 0 'h. Ott1er 0 ______ _
t. FOff:"1ai r;,a,deJoli: [J
i... r-..One 0
~I"':;NIFIC,),NCE
.:. ri::~ de~i~"!1 fron the hand of 2; recDgnizee:! maste=-, illu.!tratir.g Coxhead's l!:ega:1"t
manipul;;'t.ioo.:l of standard :st.ylistic tr.eme:s. It ha.s al ... ays been C''''!U~Q by the t'.:.r..ily
or iJr~ ThOlt'03.5 h. Willi&c!!!. for ...... '!-.O!IJ it .... ~ built. \iilli~ took hi~ A.E. at St.an
:-..;ro: L-:. le97, nne the H.J. at Columbiaj he plJ.7ed center on the Stan!or-d rc~tb,ul
team i."'l 1695-6 &Ild his i.ntere~t in a.thlet.ic~ c::ont:..nued d\U"'ing hi' yea:-'5 c.:." medical
practice in.Palo ~toJ beginning in 1904. For Over a decade he ch~ired the Univer
'ityt~ Board of Athletic Control and ~a5 in~truo~ntal in deci~ior.~ leading to con-
5truetior: of the Stadiutl. He .!!Ie:r-ved a:I city Health Orric'!r" l'iOS-1910 .. and 'Io'a~ a
me~er ot the City Couneil 1923-26.
The :structure b an important md r elativel;r rue 8X.lIilole c.! Co.xr.er.d. IS werk, mar ....... 'C'e
p:reSetltati7es or wh.1c.'l have beer. ciewllshJl!<1. Palo Alto b fortunate in posses'S
t"..ro ex..a.mp!es .. this resid.ence and the 'tiom.e.nls Club Hou=e. 'lh. st."""'.lcture stand.s
to'Warc. the rear or the large lot. with it. once extemive garden. ':sob! curre,i'1t
planting 18 overgro-.m an:'. obscures the blllding trem. street vie..... 'me bom~e a.'1d
lot are one of t'!W' remuro.ng residential properties in tl'us g.-adual.11~volving
2,~E~,~ .. ~t~~"'·,o"c '~'Cle" (Chrck onlj"onel: A. Arttolt~re [~ b. Arti& Lf1'IUni [J
..
iE~''''''''''''Cd''''U~ln~ lJ d E:>:c'crillllon&trleme-nt tJ It.. Governmel'1t U ,. Mi;,tM'y' [J
" '=1 • ."1",,,
""~". :""·.II;r""I,"'or:.:Jrr~nrs.S\Jr'O!V~.::.e''I.C'''iIIllt'1le''o1_i.indlr,elr::l.~JrS: P.;". ':i!::e:s ~/:';l:6. ~/17/L.3 .
. :>.l:;.s:!".e " • .3..i"",,="p.~. ll:~,,-~:-: ~:. ~ Ll~~3 C:J":'.:-: ..... !~5: ~.~e::'e'!5, )-t~~~~.:.c 2E!:~:'-:~
....:.J., :':~2:!J, ~r.l':'7i..-i':.:1~5. ~te.:" .. :.e .... ..L,;,:n, ....... on.'!. ,,:,,_._'c..-n.=, Cq C. :I".:.l.i:r l ~
~ ~.~:::=",J."";i:";,, ~ iP.':;'.~ 1952), p. 135-6; Pa:.J.a.s E. 'l'Iiooo, Y.i5":J:-.· ,~:~ ~.ill£.
tr)'~'J l~:~). ::. 195 .
;., ..... " Qrc:; .. n'ZII,on·
{S~illr u~ Onlyl
Pr ••• nt own.r retain> th'1' of tb •• tn:ctur ••
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ATTACHMENT B
The following groups or individuals have notified the Real Estate
Division of their interest in using the Rhona Williams property:
1. Neiqhbors Abroad
2. Urban Ministry
3. Peninsula C~nservation Center Foundation
4. Kara (provides volunteer e2rlotional support services)
5. The Lace Museum
6. Palo Alto ~~olescent Services corporation
7. Lynn Silton for a children's museum
8. women's Heritaga Museum
9. Church of the Living God, the Pillar and Ground ot Truth
10. Creighton Health Ir.stitute
11. Tt~eatreWorks
12. Paul GuYnee for a rehabilitation program for children
recovering irom chronic or catastrophic il1n~_,ss.
13. Museum of American Heritage
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ATTACHMENT C
asONA WILLLLKB PROPERT~
351 1I0J1EJ1
<:CST IBTPIlI,TES paR' ilEOP~--IlaRCV"£MZ!!'rs
Pain~ing Exterior
Painting Interior
Varnish Wood Floor
stripin~ Wood Floor
Ceiling Repairs
Landscaping
\. iny 1 Floor inq
Clean and Oil Finish Walls
"""f patching
S~ylight Flashing
Window Repairs
Kisce~laneou6 Electrical
Daloaged Door
Driveway Repair
Garage Demolition
SUBTOTAIJ with Garage Demolition
-+ lct
TOTAL with Garage Demolition
Garage Repair/Renovation
SUBTOTAL ~ith Garage Fepair
.. 10%
TOTAL with Garage Repair
I~
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$ 7,500.0·'
5,500.00
2,500.00
2,500.00
1,200.00
20,000.00
4,000.00
5,000.00
2,000.00
500.00
1.,OOO~OO
1,000.00
1,000.00
$5'7,20.0.00
$ 5.12().QO
$62.920.00
25,000.00
$79,100.00
$ 1.910.00
$81.670.00
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,4TTACHMENT D
POLICY AND i"'-OCEDUIU:S 1-11
Page 1 of 6
REVISED: A"gust 1990
UWiED US E OF CITY L1INDIFACI W,TUl!
~~e p~rpo£e of this policy is to ensu~e that decision& raqarding
use of City property are made in the best interests of the citizens
.nd taxpayers of Palo Alto. This policy and its i"pl<lmenting
p=oce~ures were approved by the City council on November 23, 1931~
The development and operation of facilities by others (proUt
and/or non-profit ~tities) or. City-owned property is approp~iate
cnly 'When such development and operation will further public use or
provide a public benefit. Such facilities and ope~ations must be
consiste.nt 'With existing City polioeiea, plal'15, services and/or
procedures. Open c~mpetitiv. and/or bid processes will be used to
solicit proposals or provide opportunities to. others prior-to
awarding an Option to Lease. This policy shall not apply to short
term interim leases ~her. no significant chanqa in use is propos.d.
A~ criteria for permitting Le3sed Use of City Property by Others
The proposed leased use must be compatible with, incidental
to, and/or supportive of, the primary public use of the city
owned property, •. q. a snack stand in a district park, or the
pro shop and coffee shop at the Golf Course.
In the event of park dedioated land, the proposed use shall be
ccnsistent with the provisions set forth in the Charter of the
city ot palo Alto, Article VIII, and the Palo Alto Municipal
Code (PAMCJ, Secticns 22.o, and 22~OB et. seq., which require
that uses of park d.dicated land be park, playqround,
recreation or conser.oation related uses.
B. option to ~
In all cases where there are siqnificant approval requirements
(siqnlficant tenant construction and/or rehabilitation),
financing requirements (t~ndrai61nq drives, obtaining
financinq from lending instit~tions, etc.), C~ uther tenant
pre-operation conditions, the council shall avard an Option to
Lease setting forth all pre-constructionJoperati~n conditions
as conditions to the tenantJs obt~ininq the lease. The option
term ahall be for a re&sonable period of time consistent with
the nature of the conditions of the option.
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POLICY AND PROCEOORES 1-ll
Page 2 of 6
R-~ISEO' August 1990
Prior to e:wardinCJ an Option to Leaa. for a specific use~
co~.ideration shall be given to particular information.
(Specific application and the relative importonca of each of
the following con.iderations will vary from site to 5it .. L~d
by specific uses proposed). Applications for leased use shall
provide the following information:
1. The extent to which the proposed leased use satisfies a
public need (e.g., by. significant number of palo Alto
resident. and taxpayers) tor the proposed seZ"\fices and/or
US8S.
2. Con.iotency of the proposed use wit.~ existing City goals
and objectives {set torth in the Comprehensive Plan,
Zoninq ordinance, Municipal Cod., and qeneral =unicip~l
service. ~bjective.l.
l. Consistency of the proposed use with existinq ~lan. for
to'>. property or facility (e.g., an approved Haster Plan).
4. "!'he impact of the proposad
uses, traffic impact.,
conservation, etc.) uponl
use (co~pati~le services and
noise impacts, anergy
• • the hmediat. neigl".borhood I
b. the co .... uni ty -;ennall)'/ and
c. the anvironment (The proposed tenant sh~ll, during
the Option period, astisfy the City's environmental
r.viev process.)
5. The degr •• of public access, including-city shared use of
the facility cr co-sponsorship of programs and/or
services, 1.e., the numbers of people, espe=ially Palo
Alto residents and taxpayers, that will be served by the
proposed use ~nd/or service. (It is the gene~al intent
of the City to caximize publio acoess to its facilities
and services, especially it park land is involved).
6. The fees that will be ch~rged to Palo Alto citizens. (It
is the intent of the City to provide public access to its
facilities at prices and/or fe.es that are fair and
reasonable to the public. In the case of parklands, any
fees and charges should be minimum and consistent vith
the fees and charges or comparable City-provided
services. )
7. The monetary conoideration to be provided to the Cit~.
,-:
~: .
,'::' .<.' .• -
POLICY AN!) ~ROCEOORES 1-11
Page :3 of 6
REVISED: August 1990
8. The histor"l· and assessment of the proposed group's
ability to carry out the construction, if any, and
operation of the facility and services as propcsed.
9. A five-year pro-forma financial analysis of the proposed
usc, setting forth the project revenues and expenses for
this period of time.
c. public Notitieation
1. Prior to awardinq an Option to Lease Cor Lease if there
ara no pre-construction or pre-operation conditions) # the
City shall provide a reasona.ble and appropriate
opportunity to other groups or entities to respond to
pc.sible use of City facilities. Such reasonable and
appropriate oppcrtunities shall take one of tb. fo11o",ing
torms:
a. A Notice of Intent to Award an Option to Lease (or
Leas. it there are no pre-construction or pre
operation conditions] generally outlining the
conditions of the option and Lease, shall be
published daily for one week in the Peninsula Times
Tribune and twice in the Palo Alto Weelli. The
Notice shall provide at least 30 days notice to the
public prior to a public hearing for Council action
to award the Option to Lease. In ad~ition, copies
of the notice ahall be ~aile~ to residential
property owne-ra in accordance with Section
18.90.030 of the Municipal Code. Generally, this
notice and hearinq process shall be used ~hen the
proposed user is I non-profit entity proposing a
specific use providinq a siqnificant public benefit
and when it appears that there are no other
competing users~
b. A Request fer Pr~posals will b~ sent to groups or
entities likely to have an interest in submitting a
proposal) # subsequent to a public hearing and
Notice o~ Intent to Request proposals being
published in the appropriate media. At a minimum,
the Notice of Request for Frcposals shall be
announced in the Peninsul a Time.£J];"ibune and the
Palo Alto Weekly and copies of the notice mailed to
residential property owners in accordance with
Section 18.90.030 of the Municipal Code. The
Notice shall p~ovid. at least 30 days notice to the
public prior to the public hearing.
•
POLl CY AND PROCEOOR.I!:S 1-11
Page 4 of 6
REVISED: August 1990
2. In preparation for pUblic notici~g, the applicant must
pr~vi~. the City Real Eotata Divi.i~n with:
a.
b.
A !ona of Interest Map showing the property
propo.e~ to be l.as.~ by the app11cant/pr~poser an~
Bhowini all parcels or properties with!n a ~i&tanee
of 91.C ~etero (300 f.et) from the exterior
boun~.r1 .. of the subj ect property. This map can
b. obt.in.~ from the Planning Department or the
~~11c Works Department, En91n.~rin9 Division, at
the C1vic Center, 250 Hamilton Avenue. :It more
than one map i. req-jJ.1red to show the zona of
interest, appllcant/proposar mQst combine th~ mapa
into a ainqle .ap of not more than lB-~ 30· Bize.
A lilt of .. treat addr ••••• , by block, for all
pr:>p",rtie. within the zona of interest, tor
example:
i.t;r;:I~t Eam. lI~!:S;[11111 Zl1R ~Q:S2!1
Bryant Street 100 tbrou9'h 251 94301
Hamilton Avenue 203 through 373 94301
c. ~. nue. and &gdrea8ea, includ.ing zip codes fer
eacb parcel or property owner within tha 91.4 meter
(300 feet) zone of irlterest properly typed on
adhesive llailing labels. The Planning Department or
Public Works En'l"inaerinq Division can provi~e a
IDurOB of such a~dr.s ••• 4
d. In tho event that the city ia the project proponent
of such l~as.~ U8~, the sponsorinq City
~epartment/divi.ion, 0.9'-Department o! Community
Services, will provide this information to the Real
Estate Division.
3. To ensure that notices Yill be mailed to tenants as wall
as owner., the Real Estate Division will provide the
Info~ation Resources Department, 04ta Processinq, with
the list of addresses provided 1n 2b~ above and request
aailing label. for .11 utility accounts charged to these
add.reaaea.
4. The mailing li.t. 'l"enerate~ by steps 2 and J above will
be examined by the Real Estate Division ter accuracy and
to eliminate ~uplications. Notices will then be moiled
..
w
elf.
\
POL! C'{ AND PROCElX'RES 1-11
Page 5 of 6
REVISED: August 1990
by tIle Division. In t."e event that the proj ect talls
wit~in the jurisdiction of a~ operatinq depart~ent, the
operatinq City department/division, e.q., Department of
community Services for recreatJonal projects, will
perform these functions.
5~ The newspaper advertise!l'lent announcinq the public hearing
ahall be prepared and placed by the Real Estate Oivision
with the assistance of the operating department, it any,
involved with the project.
6. The costa of complyinq with the above notice procedures
shall be borne by the successful applicant/proposer and
such .am shall be dUB and payable upon the awarding of
the option of Lease {or Le5se, if there are no
significant prQ-operatier. conditions te be satisfied by
the p.-oposar). In the event the city is the proj ect
proponent, such coats will be. borne by the sponsoring
department.
D. Tenant XmpI?Vementl
E.
1. construction of tenant improvements shall taJce place onlY'
after hEvin9 received Council ~pp~oval (as vell as
PlaMinq Comm:iasion ar.d Architectural Review Board
approval when otherwise required bY' City procedures) of
plans tor such tenant proposed construction. In the
event ot park dedicated lands, Council approval shall be
by Ordinance subject to refe~endum (PAMC Sections
22.08.00S and 22.08.006).
2. Generally, improvements to the real property shall become
the property of the City upon termination of the Lease.
Tenant-provided fixtures shall rem!ain the property of the
tenant.
TermS of the Leas.
1. Tenant shall be required to provide City with .dequate
compensation for the riqhts granted by City to the
tenant. Determination of appropriate conside:x::ation shall
begin with the estimated fair market rental value of the
lease premises for the use proposed~ Consideration
shall, ho~ever, be given to non-monetary benefits to be
POLIcY AND PROCEDCRES :1-H
Pag_ 6 of 6
REVISED: Augu.t 1990
provided by the 't.ena:r.t. These proposed r..on,-monetary
public benefit!O must be clearly "rticulatec1 and must
provide an actual b<lnoUt to e .i~iflcant portion ot the
~1tlzen. and taxpayer. ot Palo Alto.
2. Ths lea .. term ohall be the mlnlmUlll perlo<! of the time
r"quired to:
a. amortize tenant'. investment in any permitted and
approve~ tenant construction: and
b. be conolotent with the nature of the proposed
tenant operation.
NOTE: Question. anJ/or cbrlficaUor. of thle polley should ba
directed to the Manager, Real Property.