EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: May 3, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Kelly Beggs, Consultant Planner
Elena Lee, Planning Manager
SUBJECT: University Circle Phase II
Recommendation
Adopt a Resolution:
1. Certifying that the Final Environmental Impact Report (FEIR) has been done in compliance with the California Environmental Quality Act (CEQA);
2. Adopting a Mitigation, Monitoring and Reporting Plan pursuant to Public Resources Code 21000 and the CEQAGuidelines (California Code of Regulations, Title 14, Section 15000);
3. Directing the Community and Economic Development Director to File a Notice of Determination within five working days of adoption pursuant to Section15075 of the CEQA Guidelines; and
4. Approving the Design Review Permit (DR19-019) and Conditional Use Permit (CUP22-001) based on the findings, requirements and conditions of approval which are Attachments to the resolutions and incorporated by reference.
5. Authorizing the City Manager to execute a Pedestrian Access License Agreement for the University Circle Site.
Introduce an Ordinance to approve the Proposed Development Agreement for the University Circle Phase II project and waive the first reading.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 2: Enhance Economic Vitality
Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
PROPOSAL AND PROJECT DETAIL
The Applicant is seeking City approval of the following Project, as described in Table 1:
TABLE 1: PROJECT DATA
Project Element Detail/Description
Applicant / Owner Seven Bridges Properties, on behalf of Columbia Realty Trust (“Applicant,” “Developer”)
Location 1950-2050 University Avenue (“Site”, “Property”) Assessor’s Parcel Numbers (APN) 063-680-020
Size of Site 11.84 acres
Existing Use Office
General Plan Designation Office
Existing Zoning C-O - Commercial Office Zone
Surrounding Zoning North: Highway 101 and Mixed-Use High-Density; South: Palo Alto; West: R-HD-5, C-N and R-UHD;
East: R-HD-5
Special Designation None
Recusal Map No City Council member resides within 500 feet of the site.
Requested Entitlements
• Design Review Permit
• Conditional Use Permit for Reduced Parking
• Certification of an Environmental Impact Report
• Development Agreement
Number of Stories / Height (Office
Building)
6 Stories / 100 feet to parapet
Square Footage (Office Building) 180,000 square feet
Number of Parking Spaces 484 (total of 1,600 spaces will serve the project site’s offices as a whole)
Number of Bicycle Parking Spaces 18 short-term bicycle parking spaces; 48 longterm/secure bicycle parking spaces Estimated Number of Jobs 720
Developer Seeking Concessions? Yes, 484 parking spaces vs 551 required by Municipal Code Section 18.30.050
BACKGROUND
The project has been under review since a preapplication was submitted in 2017. Since that submission, the following meetings and actions have occurred:
• 2017-2019: Preapplications submitted and considered
• February 7 and 28, 2019: Applicant Community Meetings • April 22, 2019: Planning Commission Study Session:
http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1226 • July 30, 2019: City Council Study Session
http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1279 • December 23, 2019: Formal Application Submitted
• June 8, 2020: the City released the Notice of Preparation of the Draft Environmental Impact Report
• June 22, 2020: Planning Commission NOP Scoping Meeting:
http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1049 • November 5, 2021: the City released the Draft Environmental Impact Report (Draft EIR) for the project
• November 20, 2021: Planning Commission Draft Environmental Impact Report Comment Meeting
http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1457 • March 17, 2022: Applicant Community Meeting
• March 18, 2022: the City released the Final Environmental Impact Report (Final EIR)
• March 28, 2022: Planning Commission hearing – continued to April 4, 2022
o https://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID= 1483
• April 4, 2022: Planning Commission Hearing to adopt a resolution recommending City Council approval of the proposed project o https://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID= 1860
The project files, including the Draft EIR, Final EIR, Fiscal Impact Analysis and Housing Needs Assessment, are available on the project webpage:
https://www.cityofepa.org/planning/project/university-circle-phase-ii Existing Conditions
The approximately 11.84-acre project site is located at 1900, 1950, 2000 and 2050 University Circle, in the westside area of East Palo Alto. The project site is currently developed with three office buildings, the Four Seasons hotel, a parking garage, surface parking lots and landscaping. A one-level, below-grade parking garage underlies the project site, except for the southern portion where the proposed development would occur. The University Circle site consists of 3 parcels under common ownership that underlie the existing and proposed office buildings (APN 063-680-190, 063-680-020, and 063-680-130) and one parcel that underlies the Four Seasons Hotel (APN 063-680-150), which is under separate ownership. The site is subject to a Settlement Agreement, which expires on December 15, 2023.
The Settlement Agreement and Site History is summarized in Attachment 11 to this staff report.
The adjacent, existing structures have a contemporary design including grey stone and stucco exteriors with flat roofs. The rounded design and muted stone tile and glass façade of the existing Four Seasons building and the office buildings located at 1900, 1950, and 2000 University Circle are distinctive in comparison to other commercial buildings in East Palo Alto and provide an identifiable landmark for residents, visitors, and motorists traveling through the City on U.S. 101, University Avenue, and East Bayshore Road. The existing structures are surrounded by paved surface parking lots with landscaping and mature trees. The project vicinity is characterized by a mix of architectural styles and land uses, including single-family residences, commercial retail uses, and low-rise apartment buildings, as shown in Table 2 below.
TABLE 2: Existing Uses Surrounding the Project Site
Direction General Plan Designation Existing Use
North
General Commercial US 101 and 4 story-commercial office Mixed Use High US 101 and Gas Station
South Parks/Recreation/Conservation San Francisquito Creek City of Palo Alto Single-family residential
East High Density Residential 3-story multiple-family residential West High Density Residential 2-story multiple-family residential Urban Residential 3-story multiple-family residential
Neighborhood Commercial Laundromat
An application for a 605-unit mixed-use multiple-family residential project (the Woodland Park Euclid Improvements Project) is located immediately across Manhattan Avenue from the project site, and the Woodland project proposal is also under review by the City at this time.
Project Description
Proposed Building
The proposed project would redevelop the existing 97,659-square-foot landscaped surface parking lot located in the southern portion of the project site with an approximately 180,000-square-foot, six (6)-story office building above three (3) levels of below-grade parking. The ground level of the office building would include an approximately 2,940 square foot community room and 1,000-square-foot patio at the northeast corner of the building.
Vehicular Access and Parking
Vehicular access to the project site would continue to be provided by University Circle, which extends north into the project site from Woodland Avenue and provides access to both surface and below-grade parking. The site’s surface and structured parking currently provide a total of 1,601 parking spaces. 99 surface parking spaces would be removed to accommodate the new office building, and the proposed project would provide 484 vehicular parking spaces within the expanded three-level, below-grade parking garage and 12 surface parking spaces adjacent to the community space. The project would replace the existing vehicle downward access ramp from University Circle with a new ramp adjacent to the new office building to serve the expanded below-grade parking garage.
Roadway Improvements
As a community benefit to alleviate traffic congestion, the proposed project would widen Woodland Avenue to add a third left-turn lane on eastbound Woodland Avenue at University Avenue for a total of four eastbound lanes. Under existing conditions, there are two left turn lanes and one through/right turn lane on eastbound Woodland Avenue at the University Avenue intersection. The improvement would require modifications to the curb and sidewalk on the north side of Woodland Avenue adjacent to the project site and on the northeast curb corner of the University Avenue/Woodland Avenue intersection within the existing right-ofway.
Transit, Bike, and Pedestrian Improvements
The applicant granted an easement to the City along the eastern property line from U.S. 101 to Woodland Avenue for development of a planned bike/pedestrian overcrossing and future bike path, construction of which would be funded and completed by the City of East Palo Alto. The City Council accepted the easement dedication at its February 15, 2022, Public Meeting. The future bike path would connect to a planned bicycle/pedestrian bridge across U.S. 101 at the northeast corner of the project site. The City received grant funding to construct the bicycle pedestrian bridge and construction on this improvement will commence later this year.
The project would improve the existing bus stop mid-block on Manhattan Avenue near O’Connor Street. Proposed improvements include a new staircase providing direct access from the site to the bus stop and new landscaping to better screen mechanical equipment along Manhattan Avenue.
Pedestrian access to the project site would be expanded to include a staircase off Manhattan Avenue and two access points off the new University Avenue sidewalk (one adjacent to the northeast corner of 1950 University Circle and the second at the proposed office building plaza). The new access points would provide a direct pedestrian connection through the project site from the Manhattan Avenue near the existing bus stop to the planned bike/pedestrian overcrossing of US 101. The sidewalk on Woodland Avenue would be replaced with a new sidewalk separated from Woodland Avenue by a landscaping strip. A license agreement would allow public access and use of the site’s pedestrian infrastructure so that pedestrians can travel through the project site to reach destinations more directly.
Public Art
The project also envisions installation of public art displays, which would be implemented through a monetary contribution from the project sponsor as part of the Development Agreement. The public art display would be installed adjacent to the community space entrance near the intersection of Woodland Avenue and University Avenue.
Tree Removal and Landscaping
Fifteen (15) protected trees and one hundred and two (102) non-protected trees (117 total trees) would be removed from the project site to accommodate the proposed structure and site improvements. Sixty (60) replacement trees would be planted within the site. Proposed tree species would include Upright European Hornbean, Red Flowering Crape Myrtles, Alexandrina Saucer Magnolia, Chinese Pistache, Callery Pear, Coast Live Oak, Scarlet Oak, and Southern Live Oak trees.
All replacement trees are proposed to be 24” or 36” box size.
Environmental Review and Ancillary Documents
The City of East Palo Alto is the lead agency for all California Environmental Quality Act (CEQA) activities and is responsible for preparation of all studies/documents associated with environmental review of the Project.
Notice of Preparation and Scoping Meeting
On June 8, 2020, the City published the Notice of Preparation for an EIR for the Project, and a Scoping Meeting was held before the Planning Commission on June 22, 2020.
Notice of Availability
On November 5, 2021, the City issued a Notice of Availability of the Draft Environmental Impact Report (DEIR). Publication of the Notice of Availability began a forty-five (45) day public review period, which concluded on December 20, 2021. During this period, the DEIR was available for review and comment to the community, local, State, federal agencies, and interested organizations.
Draft Environmental Impact Report (DEIR)
This Draft Environmental Impact Report (Draft EIR) was prepared to inform decision makers and the public of the potentially significant environmental effects associated with the implementation of the Project, pursuant to the California Environmental Quality Act (CEQA) of 1970 (California Public Resources Code, Sections 21000, et seq.) and the State CEQA Guidelines (Title 14 California Code of Regulations, Sections 15000, et seq.).
A copy of the DEIR is available at:
https://www.cityofepa.org/sites/default/files/fileattachments/planning/project/19555/draft_eir_un iversity_circle_phase_ii_11.03.21-web.pdf
Final Environmental Impact Report (FEIR)
Following the conclusion of the public comment period, the City of East Palo Alto prepared a Final EIR in accordance with Section 15132 of the CEQA Guidelines.
Five (5) public comment letters were received from individuals and agencies, including the City of Palo Alto and the San Francisquito Creek Joint Powers Authority. All letters were responded to and incorporated into the Final EIR. The Final EIR was published on March 18, 2022.
A copy of the FEIR is available at:
https://www.cityofepa.org/sites/default/files/fileattachments/planning/project/19555/ university_circle_phase_ii_feir_03.17.22.pdf
Mitigation Monitoring and Reporting Plan (MMRP)
The MMRP identifies each potential impact, proposed mitigation measures, and the status of significance following implementation of the measures. Resource areas that require mitigation measures to reduce impacts to less-than-significant include Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Noise, and Transportation. Please see Attachment 5 for the full MMRP.
Ancillary Documents
In addition to the analysis related to CEQA requirements, the City’s review of the Project included the following studies/analysis, which are further described in the Analysis section of this memorandum: Fiscal Impact Analysis and a Housing Needs Assessment.
Economic Impact: Upfront/Annual Obligations and Proposed Community Benefits The development of any construction project results in economic impacts to the surrounding geographic area, therefore developers are required to mitigate these impacts through Impact Fees and project specific mitigations, which are upfront obligations. Further, projects will be subject to annual obligations. A developer may also propose additional improvements or amenities which are considered a community benefit, but these are a complement to the required impact mitigations.
Upfront and annual obligations associated with the development of the project and proposed community benefits are described in detail in the Analysis section of this memorandum.
Public Comment/Community Meetings
The applicant has implemented a robust community outreach plan, including a website and newsletter to regularly communicate with the public. The applicant held ten community meetings prior to submittal of the proposed project application and three additional meetings following application submission. The applicant also has a community e-newsletter and a separate project website which allows the community to provide input on the project and community benefits, from which they’ve received 65 comments. Community feedback focused on improving bicycle and pedestrian infrastructure, improving transportation infrastructure, traffic flow, neighborhood parking issues, and access to commute services, integrating the project site into the community and providing community space, and local job access.
The applicant also maintained communication with the cities of Menlo Park and Palo Alto, as well as the Crescent Park Neighborhood Association, all of which are required to be notified as part of a Settlement Agreement arising out of the existing project.
ANALYSIS
The project as proposed is consistent with the General Plan, the Westside Area Plan, and the East Palo Alto Development Code. Further analysis is provided below.
Development Standards and Land Uses
The project as designed is generally consistent with the development standards of the Commercial Office (CO) zoning district. Please see Table 3 below to see the project’s compliance with the development standards.
TABLE 3: Development Standards
Standard Required Proposed Complies
General Plan Use Office Office Yes
Zoning C-O - Commercial
Office Zone Office Yes
Minimum Lot Size 5,000 sf minimum 381,150 sf Yes
Floor Area Ratio (FAR) 3 maximum 1.71 Yes
Height
Maximum 8 stories or
100 ft.,
whichever is
greater
6 stories/100 ft Yes
Setbacks None required
Front: 13’ 2” to 46’ 11”
Exterior Side: 70’ 4”
Interior Side: 25’ 3”
Yes
Vehicular Parking 1:300 (551 spaces)
1:416 (397 net spaces
for proposed project)
or
1:389 (1,600 spaces
serving offices sitewide)
Conditional Use
Permit Requested
to Provide Less
Than Code
Requirement
Bicycle Parking
1 per 6,000 sq. ft. (75%
Class I & 25% Class II)
7 short-term
21 long-term
18 short-term
48 long-term Yes
Flood Zone
X (determined to be
outside the 500-year
floodplain)
-- Yes
Open space &
Landscaping
A minimum of 5% of
each project area shall
be dedicated to low
water usage
landscaping with a
minimum of 10 feet of
landscaping between
surface or structured
parking areas and
public streets (4,864 sf)
13,050 sf (13%) Yes
Site Design
The project has been designed to comply with the design standards and guidelines of the Commercial Zones for Office uses, set forth by Municipal Code Chapter 18.14.040, as described below. Please see Attachment 6 for a copy of the architectural drawings submitted for the Project.
The building’s exterior design, forms, and massing draw from the other existing buildings in the University Circle development. The curved facade facing University Avenue draws from the form of the Four Seasons hotel and the existing 1950 University Circle office building and would serve as a strong southern entry feature for the City of East Palo Alto. The community room would be located on this façade plane and open out to a 1,000-square-foot outdoor patio.
The building is designed with most of the building’s parking underground, which minimizes the visual impact of the project’s parking areas. Driveways meet or exceed the minimum width, and circulation is provided for both vehicles and pedestrians throughout the site (see sheet A1.3c). As described below, a license agreement would allow public access through the site for the community. A new pedestrian connection to Manhattan Avenue would better integrate the site with the community, and a sign program is required by Condition of Approval (COA) #36 to facilitate community and pedestrian access.
The landscaping plans include planting sixty replacement trees and complete re-landscaping of the project site’s frontage on Manhattan Avenue. The proposed project would be designed to achieve the equivalent of Leadership in Energy and Environmental Design (LEED) Platinum certification and would include the following green building features:
• Bicycle parking spaces
• On-site showers
• Electric vehicle charging stations
• White vinyl rooftop
• LED light fixtures
• Water efficient landscaping with irrigation design
• On-site stormwater management, bioretention swales and permeable paving • Roof top solar panels covering 15 percent of the roof area Low flow indoor water fixtures
• Variable refrigerant flow Heating, Ventilating, and Air Conditioning (HVAC) system General Plan and Westside Area Plan Consistency
Staff has determined the proposed project is consistent with the East Palo Alto General Plan. This project is consistent with Land Use (LU) Policy LU-2.7 and Westside Area Plan (WSAP) Policy 4.6, which specifically envision further intensification of the University Circle site. The project’s pedestrian connectivity improvements and license agreement permitting the public to use those routes (see discussion under Development Agreement and Community Benefits below) further align with WSAP Policy 7.6. The project’s design and underground parking meet WSAP Policy 6.4 and 6.7, and its provision of a community room meets WSAP Policy 8.4. The project also aligns with Economic Development Policies 1.3 and
1.9. The proposed project is consistent with the following General Plan policies and Goals.
TABLE 4: Applicable General Plan Policies
Policy Land Use and Urban Design
1.1 Balanced land uses. Create a balanced land use pattern to support a jobshousing balance, minimize traffic and vehicle miles traveled, reduce greenhouse gas emissions, and promote a broad range of housing choices, retail businesses, employment opportunities, cultural venues, educational institutions and other supportive land uses.
TABLE 4: Applicable General Plan Policies
1.3 Coherent pattern of land uses. Ensure that new development occurs in a unified and coherent pattern that avoids conflicts between uses and promotes job creation and fiscal stability, creating a high-quality environment for East Palo Alto residents.
2.5 University Avenue. Incentivize new residential, mixed use and commercial development along University Avenue.
2.7 University Circle. Over time, consistent with the planning and legal framework, allow for intensification of the University Circle project to include an additional office or hotel building and incorporate shared or unbundled parking. The City shall negotiate with developers to maximize the potential for acquiring community benefits associated with increased development intensity.
8.1 Gateways. Enhance the image of the community by creating high quality, artistic structural elements that provide city-wide consistency, substantially improving the appearances of entrances to the city along University Avenue, Bay Road, and Newbridge Street.
8.2 High quality construction and architecture. Require high-quality and longlasting building materials on all new development projects in the City.
Encourage innovation and quality architecture for new public and private projects.
9.1 Pedestrian Focus. Design the streetscape of high-volume corridors, including University Avenue, East Bayshore Road, and Pulgas Avenue, to balance regional traffic flow with pedestrian movement and safety and the unique physical environment of the area.
9.2 Parking frontages. Continue to implement parking strategies and standards that ensure parking areas do not dominate street frontages and are screened from public views whenever possible.
9.4 Lighting. Strive for all new gateway features in commercial areas to be pedestrian oriented, attractively designed, compatible in design with other street furniture, and to provide adequate visibility and security.
Policy Economic Development
1.1 Balance costs and revenues. Promote land use composition and development phasing in East Palo Alto that provides a jobs-housing balance or surplus between the generation of public revenues and the cost of providing public facilities/services.
1.3 Attraction of revenue-generating businesses. Target economic development efforts toward attracting sales and use tax-generating businesses to vacant and new developments, including retail stores/services and office/industrialbased businesses.
1.9 Office and R&D businesses. Promote growth of office and R&D businesses that contribute property and sales tax revenues to the City, particularly at the University Avenue and Highway 101 interchange and within the Ravenswood TOD Specific Plan.
TABLE 4: Applicable General Plan Policies
3.3 Supporting infrastructure and public services. Require new development projects to provide supporting infrastructure and public services that contribute to the overall improvement in quality of life in the City.
Policy Westside Area Plan
4.6 University Circle. Allow the University Circle project to add development over the time horizon of the General Plan so long as it meets the vision for the Westside, is designed to integrate with the adjacent neighborhood, and provides direct and measurable benefits for the City and the residents of the Westside.
6.2 Building quality and character. Improve the quality and aesthetic appeal of existing buildings and housing in the Westside, and encourage high quality architecture, materials, and pedestrian-oriented facades in new construction.
6.4 Building articulation. Use articulation strategies for new development to reduce the visible bulk of buildings, add visual interest, and add pedestrianoriented character detail. These could include massing breaks as well as projections, minor stepbacks, architectural details, and variations in materials to distinguish between upper and ground floors.
6.7 Parking frontage. Whenever possible, locate parking and vehicle areas in the Westside behind or under buildings, and should not be located on street corners.
7.6 University Circle Integration. Seek opportunities to better integrate the University Circle area into the surrounding neighborhoods, including through new street and pedestrian connections, more pedestrian-focused streetscape and façade design, better public access into and across the site, and better crossings of adjacent streets.
8.4 Community Meeting Space. Pursue the following new community meeting spaces in the westside, with at least one space on either side of University Avenue.
• One Small community meeting space (at least 500 square feet) • One Medium-sized community space (at least 1,250 square feet) • One Large community space (at least 5,500 square feet) • Community spaces may be stand-alone independent facilities, or may be incorporated into a larger development, but should provide easily accessible public meeting spaces for a variety of community meetings, educational efforts, civic events, social events, or other neighborhood activities.
9.1 New Street Connections. Should redevelopment occur, establish new street connections across existing large blocks whenever possible, prioritizing connections in the following locations:
[…]
• Into or through University Circle …
Fire Water Tank
The proposed project would incorporate a 186,000-gallon fire water tank and pump within the below-grade parking garage with capacity to serve the proposed project and offset existing deficiencies in the municipal fire flow for the Westside area.
Sewer District
The East Palo Alto Sanitary District (EPASD) has stated the sanitary sewer conveyance system (e.g., sanitary sewer pipes and pump stations) downstream of the project site does not have capacity to handle flows from additional development. However, the proposed project would not increase water demand at the project site due to water efficiency retrofits of the existing office buildings and, therefore, would not increase wastewater treatment demand.
Therefore, the proposed office project is estimated to not generate wastewater that would require the construction of new wastewater treatment facilities and would not result in a determination by the EPASD that it does not have capacity to serve the proposed project. The applicant will still be required to obtain all required permits including a Will Serve letter from the EPASD prior to the issuance of a building permit.
Design Review Findings
The applicant is requesting a Design Review for the construction of a new six-story office building. The Development Code requires that specific findings be made for a Design Review approval. Section 18.86.050 of the East Palo Alto Municipal Code (EPAMC) establishes the required findings. An analysis to support the findings is provided below.
The proposed development is consistent with the General Plan and any applicable specific plan and is in compliance with all applicable provisions of the Development Code and all other City ordinances and regulations.
This finding can be made because the proposed office use is permitted in the General Plan’s Office (OC) Land Use Designation and within the Commercial Office (C-O) zoning district. The purpose of the Office designation is to diversify the job and economic base of the City of East Palo Alto and to provide the opportunity for more residents to work in the City. As described in the Fiscal Impact Analysis, the project would provide job opportunities for residents and diversify the job and economic base of the City. The project is also consistent with the Westside Area Plan, which allows for the University Circle project to add development over time provided that the site is better integrated with the community and that future development provides community benefits. Further, the proposed project meets all applicable provisions of the Development Code and City ordinances and regulations, with the inclusion of a Conditional Use Permit (CUP) for reduced parking.
The proposed development is to be constructed on a suitable site, adequate in shape, size, topography, and other circumstances to accommodate the proposed development.
This finding can be made because the project site is located in a developed area of the city for a use that is allowed in the General Plan and in the Development Code. The project site is approximately 11.84 acres in size and is fully accessible by city streets including Woodland and Manhattan Avenues. The site is fully served by public services and utilities and would incorporate a 186,000-gallon fire water tank and pump within the below-grade parking garage with capacity to serve the proposed project and offset existing deficiencies in the municipal fire flow for the Westside area. The proposed project was designed to meet all development standards, such as setbacks, height, and lot coverage. The General Plan identifies University Avenue as a major thoroughfare and Woodland and Manhattan Avenues as connector streets, all of which are intended to be main routes to provide access to a variety of uses throughout the City. As noted in the project’s traffic study, the project would be required to make fair share contributions to improve nearby intersection function.
The proposed development complies with the applicable standards of review.
This finding can be made because the project was designed to comply with the Development Code required processes, which includes a Design Review and Conditional Use Permit for reduced parking. The findings can be made for the CUP as described below. The project was designed to meet all requirements of the C-O zoning district, such as setbacks and is below the C-O district’s floor area maximum. A CUP is proposed to allow an exception to the required parking, as allowed under the Development Code provisions.
The proposed development is designed and arranged to provide adequate consideration to ensure the public health, safety, and general welfare, and to prevent adverse effects on neighboring property.
This finding can be made because the project was designed to ensure public health, safety and general welfare. The project site, 1900, 1950, 2000 and 2050 University Circle, comprises approximately 11.84 acres of land bounded by US 101 to the north, University Avenue to the east, Woodland Avenue to the south, and Manhattan Avenue to the west. A variety of 2-3 story multiple-family uses lie to the east and west of the project site, and San Francisquito Creek and the City of Palo Alto lie to the South. An application for a 605 unit mixed-use multiplefamily residential project (the Woodland Park Euclid Improvements Project) located immediately across Manhattan Avenue from the project site is under review by the City. The proposed office has been designed to be compatible with the C-O zoning district, and mitigation measures identified in the EIR and MMRP prepared for the project are incorporated to avoid potential environmental effects. The project includes appropriate project setbacks, circulation and landscaping, as well as the appropriate screening for loading, parking and mechanical equipment.
Parking Reduction CUP Findings
The Applicant is requesting a reduction to Off-Street Parking Requirements from the 1 space per 300 square foot-requirement set forth by EPAMC Section 18.30.050 Table 3-1 for General Office Uses. Per EPAMC Section 18.30.050 Table 3-1, “Large office projects proposing less parking than required may be allowed to reduce parking with approval of a CUP and a Transportation Demand Management (TDM) plan to reduce impacts at the discretion of the City Council.” Pursuant to Development Code Section 18.30.100 (D), “required off-street parking may be reduced with the approval of a Conditional Use Permit and with all of the following conditions: 1.The applicant has provided sufficient data, including a parking study if required by the Director, to indicate parking demand will be less than the required number of spaces or that other parking is available; and 2.A parking management plan shall be prepared.” For the reasons set forth below, staff concludes the City can make the required findings for the CUP and that the Development Code’s additional conditions have been met.
The proposed use is consistent with the General Plan and any applicable specific plan.
This finding can be made because the proposed office use is permitted in the General Plan’s Office (OC) Land Use Designation. The purpose of the Office designation is to diversify the job and economic base of the City of East Palo Alto and to provide the opportunity for more residents to work in the City.
The proposed use is allowed within the subject zone and complies with all other applicable provisions of the Development Code and the Municipal Code.
The proposed office use is a permitted use within the Commercial Office zoning district. This finding can be made because the project as designed meets all development standards, with the inclusion of a Conditional Use Permit for reduced parking.
The design, location, size, and operating characteristics of the proposed use are compatible with the allowed uses in the vicinity, as detailed in the General Plan or any applicable Specific Plan.
The design, location, size and operation of the proposed office use, inclusive of the Conditional Use Permit for reduced parking, are compatible with the allowed uses in the vicinity because the office use has been designed to meet all development standards. The proposed building meets all setback and floor area requirements, and the site plan increases pedestrian access throughout the site. The project provides sufficient parking supply and extensive landscaping improvements. The project was designed to be compatible with the zoning district and adjacent properties, and the proposed office use is permitted in the General Plan’s Office (OC) Land Use Designation
Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, or endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use.
This finding can be made because the proposed office has been designed to be compatible with the C-O zoning district and would be required to receive a building permit. Further, hazards and environmental impacts have been evaluated in the project EIR and mitigated to less-than significant levels via the measures identified in the Mitigation Monitoring and Reporting Program.
The subject site is physically suitable in terms of design, location, operating characteristics, shape, size, topography, and the provision of public and emergency vehicle (e.g., fire and medical) access and public services and utilities; and served by highways and streets adequate in width and improvement to carry the kind and quantity of traffic the proposed use would likely generate.
This finding can be made because the project site is located in a developed area of the city for a use is allowed in the General Plan and in the Development Code. The project site is approximately 11.84 acres in size and is located adjacent to University Avenue, Woodland Avenue, and Manhattan Avenue. The site is fully served by public services and utilities and is fully accessible by city streets. The General Plan identifies University Avenue as a major thoroughfare and Woodland and Manhattan Avenues as connector streets, all of which are intended to be main routes to provide access to a variety of uses throughout the City. As noted in the project’s traffic study, the project would be required to make fair share contributions to improve intersection capacity.
Additional Conditions for Parking Reduction CUP (EPAMC 18.30.100): The applicant has provided sufficient data, including a parking study if required by the Director, to indicate parking demand will be less than the required number of spaces or that other parking is available; and a parking management plan shall be prepared.
The City’s traffic consultant (Hexagon) conducted a parking demand study for the existing office buildings using historical parking count data provided by the applicant to estimate future parking demand on-site with the proposed office building (refer to DEIR Appendix H for additional details). Parking demand for the existing office buildings was determined to be 891 spaces (25.4 percent lower than the parking spaces provided). This demand is attributable to existing TDM measures that have been implemented by the existing University Circle development, which would continue to be implemented with the proposed project.
The following TDM measures are currently implemented for the existing office buildings on-site:
• Free shuttle service to Palo Alto Caltrain Station during commute hours (30- minute headways)
• Free trial Caltrain tickets for new riders
• Free trial SamTrans tickets for new riders
• Bicycle amenities (on-site secure bicycle lockers and on-site bicycle repair stations with tools and air pumps)
• Preferential parking for carpools and vanpools
• Emergency ride home program (pending)
• Carpool ride matching services
• Carpool financial incentives for Scoop users
• Commute coordinator
• Communte.org carpool and vanpool incentives
• Commute.org Guaranteed Ride Home
• 511.org carpool rewards
• 511.org vanpool program
Further, Mitigation Measure TRA-1.1 requires that prior to issuance of grading and/or demolition permits for the project, the project applicant develops an enhanced TDM program, including the following measures:
• Expand University Circle Caltrain shuttle to meet more trains before 7 a.m., between 10 a.m. and 12 p.m., and after 6:30 p.m.,
• Add a University Circle last-mile shuttle connection for Dumbarton Express riders,
• Provide transit subsidies,
• Provide vanpool subsidies, and/or
• Provide commuter cash allowances.
A TDM Plan meeting the City’s new 40% trip reduction requirement is required by COA 30, and a Parking Management Plan is required by COA 38. Based on parking demand rates for the existing office buildings on-site, the proposed office building would have an estimated parking demand of 349 spaces at full occupancy, bringing the total estimated parking demand for the project site 1,240 parking spaces with implementation of the proposed project. Thus, the proposed parking supply with the project (1,600 spaces) would be adequate to accommodate the peak parking demand that would be generated by all four office buildings.
Per Chapter 10.32 of the EPAMC, if the project’s TDM Plan failed to meet the forty percent (40%) trip reduction target, a penalty fee for the difference between the actual and trip reduction target would be assessed. Additionally, the project would be subject to periodic audits to confirm compliance with the program.
Environmental Review Documents
Environmental Review (CEQA)
CEQA Guidelines Appendix G sets forth a set of questions to answer to evaluate impacts to environmental resource areas. The Draft EIR (Attachment 3) found that all impacts would be mitigated to a less-than-significant level with implementation of the recommended mitigation measures, and no significant and unavoidable impacts would result from the proposed project. Resource areas that require mitigation measures to reduce impacts to less-than-significant include Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Noise, and Transportation, as shown in Table 5 below. Resource areas that are listed as less-than-significant do not require mitigation.
These resource areas and mitigation measures are described in more detail below.
TABLE 5: Resource Area Impact Summary
Less-than-Significant or No
Impact
Less-than-Significant
Impact with Mitigation
Significant and
Unavoidable Impact
Aesthetics Air Quality
None
Agricultural and Forestry Biological Resources
Resources Cultural Resources
Energy Geology and Soils
Greenhouse Gas Emissions Noise
Hazards and Hazardous
Materials Transportation
Hydrology and Water Quality
Land Use
Mineral Resources
Population and Housing
Public Services
Recreation
Tribal Cultural Resources
Utilities And Service Systems
Wildfire
Air Quality
The project would implement mitigation measures to avoid impacts to air quality relating to construction dust and emissions from construction equipment. Construction activities, particularly during site preparation and grading, would temporarily generate fugitive dust. The Bay Area Air Quality Management District (BAAQMD) CEQA Air Quality Guidelines consider these impacts to be less than significant if best management practices, such as watering exposed surfaces, covering loose materials in haul trucks, and limiting vehicle speeds on unpaved surfaces, are implemented to reduce the emissions. A mitigation measure would be implemented that is consistent with recommendations in the BAAQMD CEQA Guidelines for providing best management practices to control construction emissions and would reduce onsite fugitive dust emissions sufficiently to result in a less than significant impact. Construction equipment and associated heavy-duty truck traffic generates diesel exhaust, which is a known Toxic Air Contaminant. Construction exhaust emissions pose health risks for sensitive receptors such as surrounding residents, and without implementation of mitigation measures, the project would exceed BAAQMD thresholds. A mitigation measure would be implemented requiring the applicant to use modernized equipment with engines that significantly reduce emissions of particulate matter (PM) and nitrogen oxides (NOx), which would reduce the impacts to sensitive receptors during project construction to less than significant.
Biological Resources
The project would implement mitigation measures to avoid impacts to nesting migratory birds and reduce the potential for avian collision with the proposed office building. The mitigation measures include conducting construction outside of nesting season or conducting nesting bird surveys, implementing buffer zones around active nests, and reporting results of surveys and required buffer zones prior to tree removal. With incorporation of these measures, the project would result in a less than significant impact to nesting birds. In addition, the project is also required to reduce glazing on the southern façade of the proposed office building and treat all remaining glass on the southern façade with bird safe glazing treatments to reduce the potential for bird collision to a less-than-significant level.
The project proposes removal of 117 trees from the site. Of the 117 trees proposed to be removed, 15 are protected trees. Protected trees are defined by Municipal Code Section
18.28.040(B)(2) as any tree having a main stem or trunk that measures 24 inches or greater in circumference at a height of 40 inches above grade; any tree within a public street or public right-of-way, regardless of size; any tree that was required to be preserved as a condition of a development approval granted by the City; any tree required to be planted as a condition of a development approval granted by the City; and any tree required to be planted as a replacement for an unlawfully removed tree. The proposed project would plant 60 replacement trees on-site consistent with Municipal Code Section 18.28.040. Because the proposed project would meet all applicable tree removal and tree protection guidelines set forth by the City of East Palo Alto, the proposed project would not conflict with any ordinance protecting biological resources and would not result in a significant impact to trees.
Cultural Resources
Ground disturbing activities associated with project construction could disturb previously unrecorded archaeological resources due to the project site’s high sensitivity for Native American archaeological resources. Mitigation measures were developed in consultation with the Tamien Nation and will be implemented to avoid or reduce impacts to archaeological resources and/or human remains that may be present on the site, such as implementation of subsurface borings prior to construction, presence of a qualified archaeologist and Native American cultural resources monitor from Tamien Nation during ground disturbance, development of a research design and treatment plan, and work stoppage if resources are discovered. These measures would reduce potential impacts to unrecorded archaeological resources at the site by identifying them prior to construction and developing alternative project designs, or treatment plans to avoid or minimize impacts to resources.
Geology and Soils
No unique paleontological resources or sites or geological features are known to exist at the project site and the likelihood of encountering a unique paleontological resource or geologic feature during project construction activities is low given the depth to sensitive paleontological soils in the project area (i.e., 50 feet) relative to the depth of project disturbance (i.e., 36 feet).
Although unlikely, there is potential that the project could disturb currently unrecorded paleontological resources. To reduce this potential impact to unique paleontological resources to a less-than-significant level, a mitigation measure is included in case a paleontological resource is encountered during grading or excavation that requires stopping construction activities within 50 feet of the find and avoiding the resource or implementing a data recovery plan.
Noise
Noise and vibration from project construction and noise from project operation would be reduced to a less than significant impact with implementation of several mitigation measures.
The City’s standard construction hours are 7 am to 6 pm Monday through Friday and 9 am to 5 pm on Saturdays, with no work allowed on Sundays. Incorporation of a mitigation measure that requires preparation of a construction noise logistics plan, including limiting construction hours, prohibiting construction on Sundays and holidays, requiring mufflers on equipment, and locating noise generating equipment and staging areas away from adjacent land uses, would reduce construction noise impacts on nearby sensitive receptors at nearby residential uses to a less-than-significant level. Additional limitations would be put on haul and truck deliveries that take place between 7 pm and 10 pm.
To address operational noise from mechanical equipment, the EIR requires incorporation of a mitigation measure that requires the applicant to select and design mechanical equipment under supervision of a qualified acoustical consultant to reduce impacts on surrounding uses and meet the City’s exterior and interior noise level requirements. Implementation of this mitigation measure would reduce operational mechanical equipment noise impacts on nearby sensitive receptors to a less-than-significant level. In addition, the applicant is required to implement a mitigation measure to reduce vibration from construction activities, including limiting vibration-inducing equipment and prohibiting use of vibration-generating equipment within 20 feet of existing on-site buildings.
Transportation
The project’s Vehicle Miles Traveled (VMT) would be 13.2 percent below the citywide average home-based work trip VMT, exceeding the City’s threshold of 15 percent below the citywide average home-based work trip VMT. The applicant is required to implement measures to reduce project generated VMT to below the City’s threshold of 15 percent below the citywide average home-based work trip VMT per employee by submitting an enhanced TDM program which includes expanding University Circle Caltrain shuttle services to meet more trains before 7 a.m., between 10 a.m. and 12 p.m., and after 6:30 p.m., adding a University Circle last-mile shuttle connection for Dumbarton Express riders, and providing transit subsidies, vanpool subsidies, and/or commuter cash allowances. With implementation of these additional enhanced TDM measures and the proposed multimodal improvements that are part of the proposed project, project generated VMT would be reduced to 15 percent below the citywide average home-based work trip VMT per employee. In addition, the project would be subject to the City’s transportation demand management (TDM) ordinance (EPAMC Chapter 10.32) requires nonresidential developments approved after January 1, 2022, to achieve a 40 percent reduction in daily vehicle trips from baseline conditions.
Final EIR
The Final EIR was published on March 18, 2022. The City received five comments during the Draft EIR’s 45-day public review period, including two from individuals and three from agencies. The comments centered on the following topics:
• potential ground and ground water contamination
• cumulative projects
• dewatering
• diesel generators
• noise and vibration
• air quality sensitive receptors
• water supply
• fire water tank operation and construction
• geotechnical report
• operational and construction light and glare
• traffic and transportation
• community input on project design and use and jobs for local residents • use of space for antiracist organizing
All comments were responded to in the Final EIR (see Attachment 4) and clarifying text revisions were made where necessary.
Traffic
With the passage of SB 743 amending CEQA’s evaluation of transportation impacts effective July 1, 2020, and the Guidelines implementing SB 743, a project’s effects on intersection function (referred to as level of service or LOS) is no longer considered an impact on the environment. However, the City of East Palo Alto has policies that address LOS as a planning or growth management matter, separate from the CEQA process. In the event a deficient LOS condition is identified, the City has discretion whether to require a project to address the deficiency by implementing roadway or other transportation improvements in order to restore or improve the LOS. The City’s consultant conducted a traffic analysis to determine intersection deficiency, which estimated the project would generate an additional 1,315 new daily vehicle trips, with 157 trips (135 inbound and 22 outbound) occurring during the a.m. peak hour and 155 trips (25 inbound and 130 outbound) occurring during the p.m. peak hour.
The traffic analysis showed the project would not cause any adverse effect at any study freeway segments, which included US 101 between Whipple Avenue and Embarcadero Road; US 101 between Embarcadero Road and San Antonio; US 100 between San Antonio Road and Rengstorff Avenue, and SR 84 at Dumbarton Bridge.
Traffic conditions at 13 intersections in the project area were evaluated using LOS and compared to the City of East Palo Alto and the City of Menlo Park LOS standards. Of the 13 study intersections, 10 currently operate with LOS deficiencies, and the project would have an adverse effect on the following eight intersections during one or both peak hours under “existing plus project” conditions:
• Euclid Avenue and Donohoe Street/East Bayshore Road – a.m. peak hour • US 101 Northbound on-ramp/University Plaza Phase II driveway and Donohoe Street – a.m. peak hour
• University Avenue and Donohoe Street – a.m. peak hour • US 101 Northbound Off-Ramp/University Plaza Phase I driveway and Donohoe Street – a.m. peak hour
• East Bayshore Road and Donohoe Street – a.m. peak hour • University Avenue and US 101 Southbound ramps – p.m. peak hour • University Circle and Woodland Avenue – p.m. peak hour • Manhattan Avenue and Woodland Avenue – p.m. peak hour Improvements would be required to further reduce the project’s adverse effects on the above study intersections. The applicant will be required to contribute to funding to these improvements via a reimbursement agreement for improvements being implemented at the Donohoe Street/Euclid Avenue intersection and the US 101 Northbound on-ramp as part of the University Plaza Phase II development. As for the Donohoe Street improvements at University Avenue, at the US 101 northbound off ramp, and at Cooley Avenue, the project would be responsible for reimbursing the City of East Palo Alto for a portion of the cost of improvements based on a fair share formula based on the number of trips added by the University Circle Phase II project.
Transportation Demand Management Plan
On June 1, 2021, City Council adopted a resolution to repeal the existing Chapter
10.32 of the East Palo Alto Municipal Code and enact a new Chapter 10.32 establishing a transportation demand management (TDM) program. The new TDM provisions require nonresidential developments approved after January 1, 2022, to achieve a 40 percent reduction in daily vehicle trips and existing developments with 100 or more employees to submit TDM plans that demonstrate how the worksite will achieve a 40 percent reduction in average daily trips. The proposed project would be subject to the new TDM requirements. To minimize traffic impacts, the Applicant is committed to planning and implementing a transportation demand management (TDM) program to encourage the use of public transportation and carpooling at its office site in East Palo Alto. COA #30 summarizes the TDM requirement for this project.
Mitigation Monitoring and Reporting Program (MMRP)
CEQA requires that agencies adopting EIRs and Mitigated Negative Declarations (MNDs) take affirmative steps to determine that approved mitigation measures are implemented subsequent to Project approval. Effective January 1, 1989, CEQA was amended to add Section 21081.6, implementing Assembly Bill (AB) 3180. As part of CEQA (state- mandated) environmental review procedures, Section 21081.6 requires a public agency to adopt a monitoring and reporting program for assessing and ensuring efficacy of any mitigation measures applied to a proposed project.
Specifically, the lead or responsible agency must adopt a reporting or monitoring program for mitigation measures incorporated into a project or imposed as COAs.
The program must be designedto ensure compliance during project implementation.
As stated in Public Resources Code, Section 21081.6 (a) (1):
“The public agency shall adopt a reporting or monitoring program for the changesmade to the project or conditions of project approval, adopted in order to mitigateor avoid significant effects on the environment. The reporting or monitoring program shall be designed to ensure compliance during project implementation. For those changes which have been required or incorporated into the project at the request of a responsible agency or a public agency having jurisdiction by law over natural resources affected by the project, that agency shall, if so requested by the lead agency or a responsible agency, prepare and submit a proposed reportingor monitoring program.”
The MMRP identifies 16 mitigation measures related to Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Noise and Transportation.
Implementation of the MMRP will be monitored by City staff to ensure the potential impacts of the implementation of the Project is reduced in accordance with CEQA.
Economic Impact: Upfront/Annual Obligations
Upfront Obligations Associated with Development of the Project The Project will be required to pay all related Development Impact Fees, as shown in Table 6.
Many of these Fees are paid directly to the City of East Palo Alto, but there are other impact fees (such as School Impact Fees) that are paid directly to other taxing entities.
TABLE 6: Estimated Development Impact Fees for the Project Fee Category Estimated Fee
Commercial Linkage Fee $2,116,800
Parks/Trails $217,800
Public Facilities $378,000
Storm Drainage $26,161
Transportation Impact Fee $1,382,400
Intersection Improvement Fair Share
Contribution
$317,460
Total Local Impact Fees $4,438,621
Annual Obligations
As described in the City’s Fiscal Impact Report (Attachment 7) upon Project completion,the Project is anticipated to pay the following annual obligations to the City of East Palo Alto:
TABLE 7: Estimated Annual Obligations for the Project
Description Estimated Value
General Fund Annual Revenue $805,333
Sales Tax $12,851
Property Tax $483,212
Property Tax ILVLF1 $207,248
Utility User Tax $11,078
Business License Fees $81,000
Other $10,044
Measure HH $450,000
Total $1,255,333
Notes: 1. property tax in lieu of vehicle license fees
Fiscal Impact Analysis
The Fiscal Impact Report prepared by the City’s consultant BAE Urban Economics (BAE) concludes the proposed Project is projected to have a positive net impact on the City of East Palo Alto’s General Fund, resulting in an estimated $649,900 in annual General Fund revenues in excess of the estimated annual General Fund expenditures required for the City to provide services to theproject, plus approximately $450,000 per year in Measure HH revenue for affordable housing programs and programs that facilitate job opportunities for East Palo Alto residents, due to a parcel tax approved by East Palo Alto voters in 2018. See Attachment 7 for the Fiscal Impact Report.
Future employment opportunities at University Circle Phase II would generally require work experience and levels of formal education inconsistent with the experience and levels of formal education most common among the City’s residents. The employment opportunities the Project will offer will likely include a large share of jobs that require a bachelor’s degree or higher. While these findings suggest most employment opportunities offered by the Project would be inaccessible to many East Palo Alto residents, the Project likely would provide some employment opportunities for East Palo Alto residents. A portion of East Palo Alto residents already have the industry, occupation, and education background that jobs in the Project are likely to require, while other residents may pursue higher levels of education and job training and change industries or occupations.
Housing Needs Assessment
BAE also prepared a Housing Needs and Displacement Assessment for the Project.
The Assessment presented inthis report provides an estimate of the need for housing that the Project will generate as a result of workers employed at the Project, as well as the estimated housing need generated by the indirect and induced employment associated with the Project. The Assessment also provides an evaluation of the potential for the Project to lead to the displacement of existing households. Overall, the analysis found that the Project is unlikely to have an impact on theregional housing market and displacement pressures. See Attachment 8 for the Housing Needs Assessment.
Overviews of the findings from the analysis are as follows:
• The Project would support a small increase in the number of jobs in East Palo Alto.
• Due to the regional nature of the housing market, the Project is unlikely to have any measurable impact on displacement pressures in East Palo Alto. • While existing and planned residential units in East Palo Alto and Menlo Park can potentially accommodate the housing need the Project would generate in these cities, these existing and planned units may be needed to address current housing needs.
• The Project is unlikely to have a perceptible impact on the regional housing supply or regional jobs-housing balance.
• Because the Project would have a minimal effect on the regional housing supply and jobs-housing balance, it is unlikely to have an impact on displacement on a regional scale.
• Though the Project is unlikely to have a noticeable impact on the local or regional housing market, housing affordability and displacement remain a key issue locally and throughout the region and addressing the incremental impact of the Project and other projects that generate new housing demand will be essential to addressing cumulative housing needs and mitigating displacement pressures over the long term.
• The Project would directly generate revenue that would enable the City of East Palo Alto to partially address the affordable housing need attributable to the Project.
• There is a continued need for the City of East Palo Alto and cities and counties throughout the region to explore policies to prevent displacement and address housing needs at all income levels.
Development Agreement and Community Benefits
The application for the proposed project also includes a Development Agreement (Attachment 9). The Development Agreement process is regulated by EPAMC Chapter 18.108. A Development Agreement is a voluntary contract between a local jurisdiction and property owner that details obligations of both parties, specifies standards and conditions that will govern development of property, locks in current City land use regulations for a set time, and can be used to negotiate community benefits. The Development Agreement, as proposed, is for a term of seven years, with automatic extension of five years if the applicant submits a complete application for a building permit; it also outlines the project’s Community Benefits.
Community Benefits are added value that a developer provides to the City beyond what is required by the master fee schedule and City Codes, plans, and regulations. Consistent with General Plan Policy 2.7, which specifically calls on the City to negotiate with developers seeking to increase in development intensity at University Circle to maximize the potential for acquiring community benefits, the Applicant has proposed material and beneficial Community Benefits discussed in Table 8 below that have incorporated into the Development Agreement.
TABLE 8: Proposed Community Benefits
Item Description
TABLE 8: Proposed Community Benefits
Item Description
Community
Function
Space
The applicant will pay for, construct, and maintain an approximately 2,800 square-foot Community Function Space with additional outdoor patio of approximately 1,000 square feet as a multi-use space appropriate for City functions or events, and community groups to use for meetings, events, educational purposes, cultural celebrations, and similar gatherings. The Community Function Space shall be built out to include: finished flooring, drop down or open concept ceilings, bathroom for the exclusive use of guests of the community room, audio and visual equipment, furniture, fixtures and equipment, and other decorations appropriate for the purpose of the space. The Community Function Space will be available for use by the community and City between the hours of 8am and 10pm free of charge and community users will have priority status to reserve the space over building tenants when reservations are made more than 10 days in advance of the use of the community room.
Public Art At grading permit issuance, the applicant will make a payment of $75,000 for the installation of public art, including a mural and sculptures at entry point to the community function space patio along University Avenue.
The City shall allocate this funding to a local 501(c)(3) non-profit organization.
Public Access
License
Agreement
The applicant will allow and provide public pedestrian access through the University Circle property through a license agreement with the City.
Staircase
improvements
The applicant will install a new staircase providing direct access from Manhattan Avenue to the Property as shown in the plan.
Security
Camera
The applicant will provide funds for a security camera that will be located on the project property facing the U.S. 101 pedestrian overcrossing to be maintained and operated by the City.
Woodland
Avenue
intersection
improvements
The applicant will widen Woodland Avenue to add a third left-turn lane on eastbound Woodland Avenue at University Avenue for a total of four eastbound lanes, as shown in the approved Project plans.
Bus Stop
Improvements
Improvements to the existing bus stop mid-block on Manhattan Avenue near O’Connor Street, as shown in the approved plans, including a new bus shelter and landscaping improvements.
Manhattan
Avenue
Landscaping
Improvements
The applicant will install landscape improvements along University Circle’s Manhattan Avenue frontage.
Temporary
Overflow
Parking
The applicant will provide a minimum of forty-six (46) overflow parking spaces for residents of the Westside until the Certificate of Occupancy is issued for the Woodland Park Euclid improvement project.
In addition, prior to consideration of this project by the Planning Commission and City Council, the applicant granted an easement to the City for construction of a new Bicycle/Pedestrian overcrossing of US 101 at University Avenue and a future bike path. The City Council accepted the easement dedication at its February 15, 2022 Public Meeting.
Public Access License Agreement
As part of the Development Agreement, the Applicant has agreed to enter into a Pedestrian Access License Agreement (Attachment 10) with the City to permit the public to traverse the University Circle site. The granting of this access is aligned with Westside Area Plan Policies 4.6 and 7.6, both of which call for better integration of the University Circle site with the adjacent neighborhoods.
The License Agreement sets forth the routes that the public can use to navigate through the site and sets limitations and conditions upon that use. Pedestrians would be able to walk through the site to more directly reach their destinations between 5 am and 10 pm. Conditions upon that access include that pedestrians may not obstruct the property or interfere with operations of businesses, bicycles, scooters, and skateboards must be walked, and staying on the property after hours is also prohibited.
Development Agreement Findings
Section 18.108.030(D) sets forth required findings for approval of a development agreement. Support of these findings is provided below.
The development agreement is in the best interests of the City.
This finding can be made because the development agreement includes significant community benefits with a term length of seven to twelve years (dependent on if an automatic extension is invoked). The community benefits are consistent with Westside Area Plan Policy 7.6, which calls for integrating University Circle into surrounding neighborhoods and Westside Area Plan Policy 8.4, which calls for new community meeting spaces. The community benefits outlined in the development agreement focus on enhancing pedestrian connectivity and access throughout the University Site through physical improvements, such as the Manhattan Avenue staircase, and through a license agreement which would provide the public with the right to traverse the site.
The community function space would increase community meeting space on the Westside.
The development agreement is consistent with the purpose, intent, goals, policies, programs, and land use designations of the General Plan, any applicable specific plan, and the Development Code.
This finding can be made because the proposed office use is permitted in the General Plan’s Office (OC) Land Use Designation and within the Commercial Office zoning district. The purpose of the Office designation is to diversify the job and economic base of the City of East Palo Alto and to provide the opportunity for more residents to work in the City. As described in the Fiscal Impact Analysis, the project would provide job opportunities for residents and diversify the job and economic base of the City. Further, the proposed project meets all applicable provisions of the Development Code and City ordinances and regulations, with the inclusion of a Conditional Use Permit for reduced parking.
The development agreement will promote the public convenience, health, interest, safety and general welfare of the City.
This finding can be made because the project was designed to ensure public health, safety and general welfare. The project site, 1900, 1950, 2000 and 2050 University Circle, comprises approximately 11.84 acres of land bounded by US 101 to the north, University Avenue to the east, Woodland Avenue to the south, and Manhattan Avenue to the west. A variety of 2-3 story multiple-family uses lie to the east and west of the project site, and San Francisquito Creek and the City of Palo Alto lie to the South. The project includes appropriate project setbacks, circulation, and landscaping. The proposed office has been designed to be compatible with the C-O zoning district, and mitigation measures identified in the EIR and MMRP prepared for the project are incorporated to avoid potential environmental effects related to public health and safety.
The project will be compatible with the uses authorized in, and the regulations prescribed for, the zone in which the real property is located.
This finding can be made because the proposed office use is permitted in the General Plan’s Office (OC) Land Use Designation and within the Commercial Office zoning district. The project site, 1900, 1950, 2000 and 2050 University Circle, comprises approximately 11.84 acres of land and is occupied with 3 existing office buildings and a hotel. Therefore, the proposed office building will be compatible with the other authorized office uses in the University Circle complex and in the C-O Zone.
The project will not adversely affect the orderly development of property or the preservation of property values.
This finding can be made as the project is consistent with both the General Plan and the Development Code, which plan for and regulate the development of property and set forth property value expectations. The General Plan provides a comprehensive framework for the physical development of the city through 2035 and highlights the University Circle site as one of the primary areas within the city suitable for future office development. Further, the General Plan includes specific policies to direct future development at the University Circle site. Land Use Policy 2.7, University Circle, for example, calls for intensification of either office or hotel uses at the site consistent with the established planning and legal framework.
The project will further important Citywide goals and policies that have been officially recognized by the Council.
This finding can be made because the proposed project is consistent with General Plan Economic Development Goal ED-1 to grow and stabilize revenuegenerating land uses and tools to diversify and expand the City’s tax revenue base and provide jobs for local residents. As described in the project’s Fiscal Impact Assessment, the project would have a positive net impact on the City of East Palo Alto’s General Fund. The project will also provide community benefits specifically identified in the General Plan and Westside Area Plan. General Plan Policy 7.6 calls for integrating University Circle into surrounding neighborhoods and General Plan Policy 8.4 calls for new community meeting spaces. The project’s community benefits are specifically consistent with those policies.
The project will provide the City with important, tangible benefits beyond those that may be required by the City through project conditions of approval.
This finding can be made because the proposed project will provide important and tangible benefits including a community function space, public art, public access through the site through a license agreement and supporting pedestrian connectivity improvements, intersection improvements at Woodland Avenue, bus stop and landscaping improvements along Manhattan Avenue, and temporary parking for neighboring residents to alleviate street parking shortages.
PLANNING COMMISSION SUMMARY
At their April 4, 2022, Special Meeting, the Planning Commission adopted a resolution (Attachment 12) as amended by Planning Commission during the Public Hearing, recommending approval of the project, including the following recommendations to the City Council:
1. Certify that the Final Environmental Impact Report (FEIR) has been done in compliance with the California Environmental Quality Act (CEQA);
2. Adopt a Mitigation, Monitoring and Reporting Plan pursuant to Public Resources Code 21000 and the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000);
3. Direct the Community and Economic Development Director to File a Notice of Determination within five working days of adoption pursuant to Section 15075 of the CEQA Guidelines.
4. Approve the Design Review Permit (DR19-019) and Conditional Use Permit (CUP22-001) based on the findings, requirements and conditions of approval which are Attachments to the resolutions and incorporated by reference; and
5. Approve the Proposed Development Agreement for the University Circle Phase II project
6. Apply the City’s standard construction hours to the project and deny the request for a construction hours exception.
The item was continued to April 4th from the March 28th Regular Planning Commission Meeting. A recording of the meeting, as well as the staff report and attachments, is available here:
http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1860 The Commission voted (4-1) to adopt the resolution recommending approval of the project Spanish translation was provided at the Planning Commission hearings.
Planning Commission review and discussion focused on the following topics:
Construction Impacts. The Planning Commission expressed concern for the residential land uses adjacent to the project site during the project’s construction period and asked for clarification on how mitigation measures to ensure dust control and noise reduction are enforced throughout proposed project construction.
• Staff Response: Mitigation measures are enforced through the project’s Mitigation, Monitoring, and Reporting Program, which assigns timing and responsibility for implementing mitigation measures. Monitoring of compliance with noise and air quality mitigation measures is required at issuance of discrete permits and on an as-needed basis during construction.
Construction Hours. The Planning Commission recommended that the City’s standard construction hours apply to the proposed project and that a request for extended hours be denied.
• Staff Response: Staff has worked with the project sponsor to clarify and restrict construction activities within the City’s standard construction hours (7 am to 6 pm weekdays and 9 to 5 pm Saturdays), and to even further limit operation of heavy equipment to occur between 7 am and 4 pm on weekdays and between 9 am and 4 pm on Saturdays (see added COA #18). Haul truck trips, which are not considered to be construction activities per the definitions in the City’s Municipal Code (EPAMC Section 8.52.050), would be required to occur during off-peak traffic hours, and could occur between 7 pm and 10 pm, but would be limited to two trips per hour with a prohibition on the use of Manhattan Avenue as a route per Mitigation Measure NOI-1.1/COA 51.
Community Benefits. The Planning Commission reviewed and acknowledged the Community Benefits provided by the project through the Development Agreement. The Commission requested more information on how security cameras constitute a community benefit.
• Staff Response: Staff clarified that the security camera, to be operated by the City, would be placed to overlook the future US 101 bicycle pedestrian overcrossing and was requested by the City for law enforcement purposes due to crime in similar overcrossing locations.
Tree Removal. The Planning Commission discussed the project’s tree removal and the need for trees within the City of East Palo Alto for public and community health purposes. The Commission also considered increasing the minimum size for replacement trees for a percentage of the replacement trees to a minimum of 36-inch box size, but ultimately did not move forward with that recommendation.
• Staff Response: The project would remove a total of 117 trees, but only 12 of these trees are protected. The project proposes replacement of these 12 protected trees with 60 replacement trees, which range in size from 24-inch box size to 36-inch box size, for enhanced landscaping throughout the site. Council may consider adding a condition of approval increasing the minimum size of replacement trees or requiring a fee for off-site planting if desired.
Public Comment. Staff received two comments from agencies prior to the Planning Commission Meeting, as summarized below and included in Attachment 13:
• City of Palo Alto. The City of Palo Alto provided a comment letter regarding construction noise, traffic, and Final EIR clarifications, as described in Attachment 13. Staff has implemented edits to conditions of approval to address some of these concerns, including COA 17, which prohibits pile-driving, COA 18, which clarifies which construction activities can take place during what hours, and COA 19, which allows the City to implement construction noise monitoring if needed. • PG&E. PG&E provided a comment letter noting that retaining walls and stairway improvements were located over a public utility easement that would impede their ability to maintain infrastructure. Staff has added COA 78 which requires the applicant to receive authorization from PG&E prior to conducting any work in the area.
NEXT STEPS
Should City Council choose to proceed with the recommended motion, the Ordinance approving the Development Agreement will return to Council for a second reading at a following City Council Meeting.
Public Notice
Notice of the public hearing (with Spanish translation) was mailed to property owners and occupants within 600-foot radius of the subject site on April 22, 2022. A legal ad was placed in the local newspaper and published on April 22, 2022. The public was provided notice of this agenda on the City’s official bulletin board outside City Hall, and the agenda and report were made available on the City’s website.
In addition, notices were also mailed to state, local and regional agencies and posted at the project site. Active non-profits and religious institutions in the Westside area and other interested parties were also mailed or emailed the meeting notice and Final EIR. The applicant also conducted further public outreach and noticing, including a mailing to the Westside neighborhood.
Attachments
1. Resolution, Required Findings and Conditions of Approval
2. CEQA Findings of Fact
3. Draft EIR
4. Final EIR
5. Mitigation, Monitoring, and Reporting Program
6. Architectural Plans
7. Fiscal Impact Analysis
8. Housing Needs Assessment
9. Ordinance Approving Development Agreement
10.License Agreement
11.Project Site and Settlement Agreement Background
12.Planning Commission Resolution
13.Public Comment