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HomeMy WebLinkAbout0565.000~ ~ lS., 1990 HONORABLE err'{ COUNCIL Palo Alto, calirornia TH E Sl..:":-CT OF THIS REPORT 3 ISA COUNCil PRIORITY Attention: Finance ana Publi~ Works committee UN. tMPp..n ASSEt KANAG~_~WT POLICY/)"1.R RIGHTS DEYELOPKEN'f Members of the Council '!. aeport II Bria, The purpose of this report is to l'ecommend that council incorpcrate air riqhts development as part of the Real Property Asset Management Policy aQopted by Council on May 14, 1990 and reaffirm eXisting air rights guidelines amended and approved by the Policy and Procedures Committee on Tuesday, October 2, 1990. At the meeting-of July 2, 1990.. the Palo Alto city council considered a proposal for the private development and lease of two additional floors of parking for the Webster-cowper Parking Garage. The council directed ~taff to proceed with the neyotiation of the lease agreement, but also directed staff to draw upon the process related to this proposal and s~bmit a set of proposed guidelines regard1nq air rights to the policy and Procedure~ Committee~ In August 1981, council made a similar referral to the Policy and Procedures Committee. That refe.rral occurred subsequent to Council discussion of an air rigl1.ts proposal .for City parkinq lots S and L~ The Committee decided that it was not fe.asible to develop additional quidelines for air rights projects. The questions Which arose during council's discussion of the Webster-Cowper Parkinq Garage air rights proposal cause staff to believe that it would be appropriate to incorporate an air rights policy into the City's real property asset management policy. To dat., Council has approved two air rights projects on City-owned property. The first project, Abitare Lot 0 Housing Project, involved the sale of the air l'ights above city-owned land on Alma. Street. As part of this project, Council adopted a set of CMR:565:0 1 o quidelinas for air rights development (Attachment A). The second projeot was Webster/colllper Parking: Gl'raqe lS-year lease of air rlqhta for two aaditional levels of parkinq. Althouqh the approach to both projects diffe.red, they each required. an evaluation of revenue potantial prior to the sale and lease of the prope~tie.s# the basic premise of the Real Property Asset Manaqement Policy. Maqussio:g At the recommendation of the Finance and Public Works committee on Hay 14, 1990, Council adopted a Real Property Asset Manaqement rolicy 'Which recognizes all real property ow-ned by the city as assets in terms of evaluating revenue potential prier to sale, l~se# or granting of any rights. Staff was qiven direction to; 1) Analyze properties in terms of revenue potential (or operating costs) prior to sale, as well as their dir~ct and indirect benefit(sl to ~~e public; 2) Present revenue analyses to Council; and 3) Prepare Requests for Proposals for those properties identified by Council as potential sites for development. Air riqhts are a form of real property assets and should therefore be included as part of the Real Property Asset Management Policy. Staff proposes to amend the Asset Management Policy to read: -The Real Property Asset Management Policy recoqnizes all real property including air rights owned by the City as assets in terms of evaluating revenue potential prior to sale, lease~ or granting of any rights.- On January 7, 1980, as previously mentioned, Council adopted a set of guidelines for air rights development over assessment district parking lots; the guidelines ~ere ~eaffirmed and amended by the Policy and Procedures Co~mittee on october 2, 1990~ The Committee added ite~ 10, vhich requires a copy of the ~~idelines be distributed to all air rights applicants and placed in the Council and Planning Commission packets concurrently with any 5ir riqhts applications. Staff conCt.lrs with guidelines as a-mended by the Policy and Procedures Committee. staft recommends t.":lat Cour.cil reaffirm the guidelines as amended. l.aspp,P..ndatioD Staff recommends that Council approve and amend the Real property Asset Management Policy to read as tollows: The Real Property Asset M~nagement Policy recognizas all real property, includinq air rights owned by the City, as CMR:565:0 2 ." aSB~t. in terms of evaluating revenue potential prior to sale, lease l or grantinq of riqhts~ statf also recommends that .council reaffirm as amended by the Policy and Procedures committee,. the guidelines foc Air Rights Development over Assessment District Parking Lots. Respectfully submitted, (jjJk.u 11..(JL.~--- WILLIAM W. FELLMAN Re~l Property Manager '1!:!I!:i~ aJ.=,~,,,§ attaChment: A -Guidelines for Air Riqhts Related Staff Reports: Clnt: 518 : 0 CKR:534:8 CKR,220:0 CKR, 184: 1 CKR:S65:0 3 o AIIAtI!!!OO..A GUIDELINES FOR AIR RIGHTS OEYELOP~ENT OYER ASSES~ENT DISTRICT PARKING LOTS I. Air ~ights should be d.,eloped prlm.rily for housing in reference to t'. Comprehensive Pl.n Housing Progr .. 27. 2. Air Rights projects will be ev.luated on the basis of public benefits to be provided Ilow-lI!Oderate income housing, additional public parking, energy conservation, etc.) 3. The air space deve10pment should be compatible, visually and funttionally wit~ t~e surrounding uses~ 4. The <leslgn plan should be workable .nd shouid mitigate neg.Uve impOtts of the surface ~se on the airspace use. 5. The air space development sflould nGt substantially reduce the present utll ity. ia;-air the operition, OT conf1 iet with recognized long-term needs of the primary (surface) use. 6. Air rights will be conveyed by long-term lease where possible but s.le of lir rights ~s not ruled out. 7. An independent appr.lsal of the .alue of air rights will be obtained and except in un~sual circumstances, the City vll1 seek co~petitive bids. 8. Sigr.1fftant extraordinary public benefits (pro~is;on of additional public parking, below Market rate ho~sing units above the required number etc.) will be considered when deterDiDiog compensation to the City for sale or lease of air r;9~ts. 9. Ap~lic.tions for Air Rights projects should fnclude: i. a description Df the proposed facility, site plans. elevations, outline of specifications. structural systems, types ~f materials, proposed uses (i~cludin9 price structure of housing unitsJ. preliminary estimate of eapital investment, and time-table foo(' completfo",; b. stateRletjt of developer's pertinent expetien!;!; c. description of negative impacts on the surface U5e during constrYctian. including proposed mitigation measures; d. economic. feasibility analYSis, inc1udiJ1g prnposed fjrJancing arrangement, proposed lease terms, and pt-e' iminary est imates of the value of t~e air ris~t$ and e. proposed prGperty ~aiDtenante ind insurance program. Ie. A copy of these guidelines are to be distributed to .11 iiT ,·jghts applicants and placed i" tf'le CDuncH and Planning COrmlissicn ~ackets concurrentl, with any air rignts applications.