EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: May 17, 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 Development Agreement Recommendation
Waive the second reading and adopt an ordinance approving the Development Agreement for University Circle II.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 1: Enhance Public Safety and Emergency Preparedness Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
Background
On May 3, 2022, the City Council approved the University Circle Phase II project. The staff report1 and presentation included the certification of the project’s Environmental Impact Report (EIR) and approval of the project entitlements (Design Review Permit (DR19-019) and Conditional Use Permit (CUP22-001)). City Council adopted a resolution approving the project and certifying the EIR (4 votes approving, and 1 abstain). An additional component of the project is a Development Agreement. The Council waived the first reading and introduced an ordinance approving the Development Agreement for the University Circle Phase II project (Attachment 1).
Analysis
The City Council directed staff to make non-substantive changes to the Development Agreement, including edits to increase the amount of time that the temporary parking is made 1 https://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1809 available to the community and to clarify that the community function space is operated in consultation with the City and that this community benefit survives termination of the development agreement.
The City Council added several new conditions of approval regarding the following topics:
• When technologically and economically feasible, diesel backup generators shall be substituted with battery operated generators.
• Shuttle trips between University Circle and the Palo Alto Caltrain station shall be open to East Palo Alto residents.
• The applicant shall contribute $75,000 to lighting improvements that is architectural in nature to highlight the pedestrian bridge.
• The applicant shall contribute $200,000 to nonprofits to support job seekers. 100 percent of the funds shall go to the non-profit organization and like kind contribution shall be credited towards $200,000.
• The applicant shall install a minimum of one level 3 non-Tesla Electric Vehicle Charging station above ground. If there is sufficient electrical capacity, additional charging stations shall be added, provided demand warrants.
• The applicant shall contribute $75,000 by the developer to a City fund for the purposes of tree planting.
• The applicant shall provide parking garage usage data to the City as part of compliance with the City’s Transportation Demand Management (TDM) Ordinance. • The applicant shall contribute $150,000 for tenant improvements for the City-owned incubator space at Cummings Loft. If the funds are requested prior to the issuance of the building permit, the funds shall be provided as an interest free loan for 20 years.
These additional conditions of approval were incorporated into the final conditions of approval for the project.
Fiscal Impact
There is a neutral fiscal impact to adopting the Development Agreement ordinance. The purpose of a Development Agreement, as set forth in Chapter 18.108, is in exchange for assurance from the City that a project can be developed as approved for a specific time period, the project provides the City with significant tangible benefits beyond what would be required.
The applicant will provide community benefits including payment for a security camera, a public access license agreement, a community function space, funds for public art to be distributed to a non-profit arts group, overflow parking spaces, bus stop improvements, a new staircase, landscaping improvements, and a third left-turn lane on eastbound Woodland Avenue at University Avenue.
The Fiscal Impact Analysis concludes the proposed project itself 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 the project, 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. Additional financial contributions to the City will be made through payment of Development Impact Fees and implementation of the project Conditions of Approval, as described above.
Public Notice
The public was provided notice via publication in the San Mateo Daily Journal on May 12, 2022, and by posting the agenda on the City’s official bulletin board outside City Hall and making the agenda and report available online at
http://eastpaloalto.iqm2.com/Citizens/Default.aspx.
Environmental
An Environmental Impact Report (EIR) was prepared for the project pursuant to the California Environmental Quality Act (CEQA) to identify and address any potentially significant environmental effects associated with the project. The City Council certified that the Final Environmental Impact Report (FEIR) had been done in compliance with the California Environmental Quality Act (CEQA) and adopted a Mitigation, Monitoring and Reporting Plan pursuant to Public Resources Code 21000 and the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000) at the May 3, 2022 Public Hearing.
Attachments
1. Ordinance