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HomeMy WebLinkAbout0571.000, .. November IS, 1990 HONORABLE CITY COUNCIL Palo .... lto) CalifoTl'lia THE S"'"\.JECT OF • THiSREPORT ISA LCOUNCil H':,CRITY -------------~----- P.ttentfon: Finance and PubTic Works CommitteE LAND USE REVENUE A.~AllSIS . -REQUEST FOR PROPOSA.!. Members of the Council: R~port to Brfef: On September 11, 1990. the Fi~ance and public Works Committee (F&PW), after revfewing the staff report on Revenue Impact Analwsis tCMR:493:0 of giS/gO}. directed staff to return to the Committee with a draft Request foy Proposal (RfP) and estimated budget for obtaining limited professional services to; 1. Identify potential ~even~e opportunities in the City withfn the context of existing City Planning policies and regulatfons. and 2. Determine what actions would he necessary in order to maximize those revenue npportunities. QP.jectlves: RFP Draft Scope of Work Staff has drafted i 5COp~ of work in the attached RFP that would result in an analYSis by a profess1onal land use economist describing ~h,ch sites. or areas PaTo Alto (identified in later settion) offer potential cpportuhiti!s for bl9her revenue yields and ~hat types of public and/or private actions. within the cDntext Cif Camprehenshe PTan pol icies, wou1d be necessary in order to realfze higher revenues. Tn addit10n, this study would ana1yze a limited number of other targeted commerCial areas in nrder to identffy factors that have llmHed the upgrading of th.ese areas and also evaluate potential effects of the 6S,OOO-sQuare-foGt expansion cap on the Stanford ShoPPlng Center~ The prDposed scope has been moderately expanded ov~r the financ~ and Public Works Committe~ directive in order to maximize the benef!ts to the C;ty of an economic analysis. focl.Jsfng on a limited number of areas in Palo Altil. In effect, the findi~9s of thi3 study would inform the City not only of sites and areas where opportunities ~~ist for greater potential revenues but would i1~o explain why other 5'ites and areas may offer less potential for upgrading ind higher revenues to the City. CMR:571:0 • ~Arus and Focus pf Analysts Opportunity Sites / The principal element of this ec~nomic land U5e study would e~amin~ a 1 ;mi ted number of cOrmlerdal areas ir-Palo ATto inc"jding: I. The IJrban Lane/Town and Country Village area, and 2. [1 Camino Real, south of Stal'lf{Jrd Avenue to the: los AltosjMcuntaiD Yie~ city limits. These areas were se1ected because portions of tnem have relativel, large sites that currently appear to be underutililed. In addition, portions of [1 Camin!l Real ~,ave large-or moderate-sized sites that art e1t"er planned for or are currently undergoing redevelopment wnich would illustrate the type of redevelopment tnat is occurring in these areas and the extensive time frames that are often necessary before n~w development reflects changes in public pol ic.1. As an exampTe, in these [1 CaMfno locations. land use and development policy for portio~s of £1 Camino Real changed with approval of the Comprehensive Plan in 197& and with approval of th~ then new zoning ordinance in 1979. rn evaluating oPPJrttJnity sites t pr-ofessional corvnent would be soH<e1ted on t~e potential effectiveness of the recently apprave1 (H) Hotel Combining District (l.e.t overli~ lor-e)t both in terms of t~e FAR bonus provision (0.6 to 1 versus 0.4 to 1 in tne underlying CS District) and 1~ terms of the sites where it is currently appl~ed (Ricke~rs Hyatt and Dinah's). If the Hotel Combining District is determined to be potentially effective, comment would be soljcit!d on sites ~ere it co~ld be considered for future application. In tne cl)Urse of such ar'1alY5is. staff belie .... es that information on constraints for potential upgrading or development of specific sites or areas would be equ~11y informative and beneficial to decisl0~ makers. Such information would be requested in the scope of work not on1y for the above areas fronting El Camino Real bwt also for two types of commercial areas where physlcal improvements or upgrading to existing pro;pertfes have not ('ccurred to iii significant degree ;n recent years. They are 1) the three neighborhood shopping centers, i.e .• Edgewood Pliza t Charleston Center and Alma Plaza, and 2J the Californja Avenue BUSiness Oistrict. The focus of t~is latter analysiS ~ould include an evai~it;on of ill likely constraints or djsinc~ntiyes to propert1 upgrading including but not limited to existing regulations, location, access and size of site. CMR:S71:0 RevOpp/g2 11/15/90 Page 2 • , 0° o o Stanford Shopping (enter In addi~iol'l, staff be11e'Jes that the Stanford Shopping center~ wh1ch genel"ates apprc.ximately 2S ~erc.ent of the City's taxahl eo sales revenues. shouid be examined in order to determine if the current growth cap of C5,OOO additional squart feet~ imposed on the shopping center at the conclusion of the Citywide land Use and Transportation Study. limits the potential ~iabil ity of this regiona1 shopping center relative to both its potential growth in sales and to its position among the major r~gional shopping centers in Santa Clara and San Mateo Counties. Study Steps and level of Oeh_il This hnd IJse ri!'venue analysii essential1y would providi! a broad overwiew. rather than a detailed type of response to the infon1ation a.nd recommendations requested fer in this study's scope of work. The study requires the expert;se of a p~fessjonal land ~se econrnmist. Procedural steps of the study wouTd require the seTect!d e~onomist initially to revie ... th! c.ity's Comprehensive Plan policfes and comerciaT district regulations (e.g .• CS, eN, C( and (H) Combining District) for an understanding of adopted policies and loning regulations. Tne economist then would revie~ the types and m&gn;tude of City revenYes from development-t!lated sources. Then, t~e economist would examine the desfgnated (ommercial areas and sites to identify IJ constraints, a"d 2) oppoftunities for upgrading that COUld expand revenues fer the City. lastlYt the economist would submit to the City findings on the land ~se analysis a~d recomrnendatfons for realizing e~panded revenue opportunities. [stfmated B~dg!t Since the focus ~f this stud1 would provide an overview that responded to the identified issues and potential opportunities, staff would not expect such analysis to requ;r~ a s~9nificant expenditure of City funds. As a result, staff believes th~t the cost of such a study should not exceed $25,000. Recorrmendation B~sed on the preceding discussion, staff recommends that the fina~ce and Public Works Committee direct staff to initiate a constltant selection process and return t~ the Committee with a se1ected consultant and a budget amendment to proceed with the study. lesctf.-Il YJu .itted, 'v/.~~"" [oiltz E Assistan~.n ng Official eMll:S71 :0 RevOp~/9Z 1fmta:l fAju~> rENNETH R. SCHREl8ER Di rector of .Dl ann ir,g and Community [nvironment 1I/IS/90 Page l '® ) t/ /J.;;u~j:~ J,tlN£ Fll:KING ~ J)s~'ist.nt City ManaW lj Attachments: Scope of Work Related CMRs: CMR;493:0, dated 9/6/90, "Revenue Impact ~naly."· cc: P'1 annfng Camnission Arcnitecturil Re~few Board ChambEr of {or.rnerte Stanford Univ~rsjt1 (Su Shaffer, Andy Dct1t Phil Williams) Barron Bark Assocfation Chestnut-Wilton Ho~ow~ers Assoc;atl~n College Terrace Neighborhood Assoc1aticn Greenacres rmprovement Ass~ciat1on Hoover Park Neighborhood Association lr.terdale Way Homeawners Association leland Kanor ASSDciation M;dtown West Old Trace Neighbo,-hood Pil0 Alto Hills Homeowners Association Co.m,ttee f~r Gre~n foothills Ventura Neighborhood Association, Dav'id Jeong re~turl Ne1gnborhood Associatfon, Denny Petrosian Walnut Gro~! Homeowners Association Webster Court Homeowners Association Charleston Meadows ,Neighborhood .~sso<:iation, Jane Sarrett Charleston Meadows Neighborhood Association. Jean Almsted Downtown North NeiQhborhood AS$oci~tinn Evergreen Park Neighborhood Association Green Meadow Community Association Greater Miranda Community Association Southgate NeIghborhood Stanford Mid·?eninsula Urban Coalition West Bayshore Residents Association Greenacres II Jordon/Garland Neighborhood ~nta Lama Neighborhood Association Southgate Nefg~borhood University Park ASSDciatio~ University and Crescent Park Association Pi10 Alto Housing Corporation Steve Playe r Oav;d Jury Ja.mes Baer Keenan land Company OIR; 571 : 0 RevOpp/gz 11/15/90 Page 4 • CITY OF PALO ALTO SCOPE OF WORK land Use R~venue Analysis The City of Palo A1to desires 1) information identifying co~rcjal sit!s offerfng additional revenue oppo~tur.ities ~;thin the conte~t of Comprehensive Plan policies and 2) i~formation analyzing designate1 cD1Imerc;al areas in terms of Heir upgrading potential. PurDOS' The results of the st~dy ar~ expected to infor.re decision ~akers and ~er5 of tne community on 1) sites offering potential revenue opportunitie~ to the City; 2} measures necessary to r~alize these opportunities; 3) factors limiting upgrading in designate~ c~mmeTcial Ireas; and 4J effect of 6S,OOO-square-foot growth C2p on the Stanford Sho~ping Center. The commercially z~ned areas to be studied are identified on attached Exhlbits. Opportunity areas intlude: L Urban lane/Town and tountry Village Area; and 2. n Camino Real, south (If Stanford Avenue to the los Altos/Mo~ntai~ View cit) limits. C~rcial areas to be evaluated for factors limiting upgrading include: 1. The three neighborhood shopping centers, i.e .• Edgewood P1~za, Charleston Center and Alma Plaza; 2. The California Business District; and 3. The Urban lane/Tcwn !nd Cvuntry Are! and El Camino Real south of Stanford Avenue. The Stanford Snopping Center will be evaluated in terms of potential ~ffects of the 65,OOO-square-foot !xpansion cap. The professional land use etonomist will be working primarily with City staff from the Plilnnhlg and Finance Departments. ilork elements will include: I. A review of all Comprehensi~e Plan goals, policies and programs affe~ting the designated commercial areas in the study; 2~ A rey;~ of ill zoning regulations iffecting these areas; RevOpp2/gz Page 3~ A review of C1 ty revenues from sales ti)(~ property tal( and other revenyes generated by the commercial areas in the studJ+ 4. A review of the physical setting and site location of commer,1al areas and Sites designated iil the studYi 5. MeetiDQ with City staff) as needed, to obtai~ n~cessary background informa.tion; 6. Meeting .lth elected and appointed officials to discuss background for current City policies affecting designated properties; 7. Meeting with selected members of the business cOII'!I'TI'Jntty and property and business owners \Jfithin the desfgnated study areas to discuss recent and exp£~ted future market treods; e. Preparation by professfonal land use economist of a prelimfnary d~aft of findings and recommendations. Draft wlll be re~f~ed by Cit! stoff; 9. Prep~ratfon by professional economist of a final draft fncorporating c~~ents of City staff. Final draft will be submitted to the Finance and Public Works Committee for review and comme nt; and 10. Preparation by economist of the final document, including site location grap~ics, to be submitted fer City ~ouncil review and acti{ln. Sche<lu!e It is anticipated that preparation of tnis land ~se revenue analysis, including all CHy reviews, will require approx1I1'latel,)' six (6} months from date of contract. Tne anticipated budget for all .sp~cts of consuitant services i$ .stimat~d to be no more than $25,000. subBltta! Reg"l~eoents Interested consultants ~hould provide the following information ",illch 'Sh()ulcf be in an S-I/2w x ll~ format and bound together: 1. A statement of services, which 1nc1udes an outline Df the meth~ to be used in preparin9 the proposea Gufdel,.,es and I r-ecoimler.dation on publ it outreach. 1. Consultant fee and method of computation. ReVOpp2/gz Page 2 o 3. A brief description of backgro~nd and capab1lities Df the cons~ltant and i statement of direct relevant experience with similar projects. 4. Samples of relevant projects. s. The na~s and bri~f resumes of profe~s10n~15 wh~ will be assigned to the project. Con$y)ta~t S,Tection A Cons{Jltant Selection COFM1ittee conshting of CHy staff members, one Plinning Co~;ssio~er, one re~r!se~tatfve from the Chamber of Commerce ~nd one rep~esentatiye 'rom the comrnun;t~l will review proposals and interYiew the MOst qualified consultant based on the fOllowing criter;a: 1. Demanstrated expertise in the field ~f land use economic analysts; 2. Ability to work effecti~ely w;t~ staff and public officials; 3. The approach and methodology proposed; and 4. Cost ~f consu;tant strvices. Consultant [nfonRation Cgmpensation: Payments shall be made UpDD receipt of invoice fer work p2rforaed~ The frequency and amount of payment will be subject to a negotiated contract between the City and the consultant. Insurance: The se'ect~~ consultant s~all submit to the C1ty~ using furnisned insurance fonms, a certificate of insurance for the contract time and amounts spe<ified. RevOpp2/gz Page 1 • ~ GRAPHIC ATTACHMENT DATE: 11-13-. SCALE: .. TO STAFF RE?ORT F1LE NO. • • r-P-~-O-J-E-CT--:---LA--.D--U-S-E~R~E~Y~E~.-t~~~'M-.-'-C-T--A-.-'-LY-S-I-'-S-T-U-D-Y-'-'-E-'~S====! « NORTH .;0;; •. I ;""",1 >~';,!::~~'ij , ~ , i I m )( :I -m • m • '---------,----"" •• --. -'"-,*-'--'-~-----"""'-" -~-'--",-~,. 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