EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: November 1, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Kelly Beggs, Consultant Planner
Hansom Hom, Deputy Manager, Special Projects
Elena Lee, Planning Manager
SUBJECT: Woodland Park Euclid Improvements
Recommendation
1. Adopt a Resolution approving the General Plan Amendment (GP19-001) establishing the Neighborhood Center Overlay Land Use Designation;
2. Introduce Ordinances enacting the Development Code and Zoning Map amendments (ZC19-002) establishing the Neighborhood Center Overlay District;
3. Adopt a resolution:
- Approving the Design Review Permit (DR 19-028), Conditional Use Permit (CUP22- 003), and Tentative Parcel Map (TTM19-001) based on the findings, requirements and conditions of approval which are Attachments to the resolutions and incorporated by reference;
- Approving the Relocation Plan dated September 2022; and - Authorizing the City Manager to execute a Notice of Special Restrictions applying the City's Rent Stabilization Ordinance to 160 new/replacement units in a form approved by the City Attorney.
4. Introduce an Ordinance approving the Proposed Development Agreement for the Woodland Park Euclid Improvements Project
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
Background
City Council reviewed the Woodland Park Euclid Improvements project at the September 6, 2022, September 20, 2022, and October 4, 2022 City Council meetings. On September 6, Council received staff’s presentation, the applicant’s presentation, heard public comment, and deliberated, but ultimately continued the item to the September 20, 2022 meeting, at which time it closed the public hearing. The item was continued to the October 4, 2022 City Council meeting, at which staff responses to questions raised were presented. Council adopted a resolution certifying the project’s Final Environmental Impact Report, adopting the Mitigation Monitoring and Reporting Program, and adopting a Statement of Overriding Considerations at the October 4th meeting, but continued the item to the November 1, 2022 meeting to allow for revisions to the Development Code Amendment and to add additional oversight and reporting requirements over the Relocation Plan. The recordings of the meetings, staff reports, and associated attachments can be accessed here:
− September 6, 2022 Council Meeting:
<http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1818> − September 20, 2022 Council Meeting:
<http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1819> − October 4, 2022 Council Meeting:
<http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1821> The staff reports for the September 6, 2022, September 20, 2022, and October 4, 2022 meetings are included as Attachments B, C, and D; the analysis below supplements those reports and provides further information about Development Code revisions, additional Conditions of Approval, and Relocation Plan oversight discussed by Council at the October 4th meeting. Changes are summarized in the Errata Sheet, Attachment A.
Analysis
Development Code Amendment Revisions
Per Council’s direction, the Development Code Amendment that establishes the Neighborhood Center Overlay district has been revised to narrow the properties that could apply for a rezoning to the NCO zone at some time in the future. The revised area includes the area within the Westside Area Plan zoned R-HD-5 or R-UHD bounded by West Bayshore Road, Euclid Avenue, O’Connor Street, and Manhattan Avenue and those parcels within the Westside Area Plan with frontage on Euclid Avenue, as shown below.
Relocation Plan
Staff received comments on the Relocation Plan from Council at the October 4th Hearing and also received public comments from tenants relayed by Councilmembers. The applicant has submitted a response letter to tenant comments on the Relocation Plan, which is included as Attachment W.
Relocation Plan Timeline
Council asked that the Relocation Plan be revised to include specific start dates for the implementation timeline (Relocation Plan page 28-29). Staff also received public comments indicating some tenants do not wish to remain in their units for a significant amount of time after approval of the Project and Relocation Plan. The applicant is willing to move tenants into their temporary units at any time. For this reason, staff recommends a condition of approval which would require the applicant to re-advertise the Optional Tenant-Requested Move (OTRM) Program and allow tenants to participate in this program until Notice of Termination of Tenancy is sent. When the Notice of Termination of Tenancy is sent, tenants will still have the option to move into a temporary unit owned by the applicant or a temporary unit of their own choosing, and to return to a right of return unit. In addition, they will have the option to receive a relocation payment after receipt of the Notice of Termination of Tenancy.
Public comment also included a request for a 3-month period for tenants to choose their temporary units and a 3-month period to move. All tenants will have one year after receipt of the Notice of Termination of Tenancy to finalize their move. While the plan currently asks that tenants make their decisions about their relocation options within one month of receipt of the Tenant Choice and Replacement Apartment Notice form, tenants failing to make their choice within that time period will not be penalized and will continue to have opportunities to make their choice until closer to the actual move date. Additionally, the applicant has committed that tenants will receive a minimum of at least 90 days’ notice before the tenant is required to move. This language will be inserted on Page 28 of the Relocation Plan and is included in the Errata (Attachment A).
Relocation Plan Eligibility
Council asked that the Relocation Plan be revised to indicate the number of households eligible for benefits. The errata sheet states the number of households currently eligible for relocation benefits (those who are participating in the OTRM Program and those households currently residing at the project site, as well as the 8 additional households who will be offered a right of return unit).
The number of households is subject to change after approval of the Relocation Plan, since there currently is no precise date on which the Notice of Termination of Tenancy will be sent, and tenants who move out of their units without participating in the OTRM Program would not have access to other relocation benefits.
To address the underlying concern about attrition at the project site, staff has added two conditions of approval which require:
− Notice of project and relocation plan approval within 1 week of project approval, which will re-advertise the early optional tenant-requested move; and − Inclusion of a waiver of relocation rights, with information regarding temporary replacement housing and right of return housing as well as relocation payment amount, with any move out documentation for households which elect to leave without utilizing relocation benefits (via the applicant’s early tenant requested move program) prior to termination of tenancy notification.
Relocation Plan Oversight Board
In response to public comment at the September 20, 2022 public hearing, Council asked staff to establish an independent entity to oversee the implementation of the Relocation Plan. Staff recommends that the Rent Stabilization Board serve as the oversight body for the Relocation Plan, since the units involved are subject to the Rent Stabilization Ordinance. The Rent Stabilization Ordinance also includes procedures for petitions and hearings, and these procedures could be used should a tenant have a complaint regarding Relocation Plan implementation.
− The Relocation Plan includes notifications to Rent Stabilization Program (RSP) staff regarding Changes in Tenancy to temporary replacement units and to right of return units, as well as acceptance of relocation payments. Staff also suggests additional conditions of approval which would require:
− Transmittal of copies of all Relocation Plan communications to and from tenants to be sent to RSP staff;
− The addition of RSP contact information to all communication forms in the event of a complaint;
− Bi-monthly reporting of Relocation Plan status by the applicant to RSP staff on a form approved by the Rent Stabilization Board, including which households have selected which relocation options, which remain undecided, and any households that left without utilizing benefits; and
− Submittal of information to RSP staff as requested, but at least bimonthly for first eight months of Relocation Plan implementation and quarterly thereafter, to provide informational updates to the Rent Stabilization Board on implementation of the Relocation Plan.
− The applicant to notify all affected households of each Rent Stabilization Board meeting which includes the Relocation Plan as an agenda item.
Other Issues
Other items requested by tenants have been addressed in the Errata sheet (Attachment A).
Additional issues are as follows:
− Temporary Unit Location: Tenants request temporary units on the west side of University Avenue. The Applicant believes that this is feasible and agrees to accommodate this request provided that a vacancy exists. − Garage Storage: Tenants with enclosed garages asked for private storage areas if no such area exists in their temporary or right of return units. The applicant agrees to provide this amenity on a case-by-case basis for those who request it. − Parking: Tenants expressed concern about being charged additional fees for parking at right of return units. Tenants are guaranteed the same number of parking spaces they have in their lease and would not be charged additional fees for parking. It is possible that the applicant will unbundle the parking cost from the rent as part of the TDM Plan, so that the parking charge is separate, but the overall out-of-pocket amount paid by the tenant would remain the same. For example, if someone’s rent is currently $1,000/month and parking costs $50/month, the rent could be reduced to $950 and the $50 parking fee charged separately. This allows people to opt out of a parking space should they not have a vehicle.
− Notification: Tenants have expressed concern that they may miss deadlines if notices are mailed or hand delivered. The applicant agrees to ask a head of household sign a receipt of any notices or Relocation Plan documentation, although no one can be forced to sign. The applicant also agrees to provide a copy of the Relocation Plan in English and Spanish to all eligible households.
Additional Conditions of Approval
To respond to questions and concerns raised by Councilmembers, staff is recommending incorporating the following additional Conditions of Approval into the project approval (CUP 22- 003, DR 19-028, TTM19-001).
Council reviewed the following Conditions of Approval at the October 4, 2022 Hearing:
1. The applicant shall offer a $2,000 anti-displacement incentive in the form of a rent rebate or home goods voucher to households that move into right of return units.
2. Prior to Building Permit issuance, the applicant shall contribute $150,000 to the City to be used as a rent relief fund.
3. Prior to Building Permit issuance, the applicant shall dedicate the land adjacent to the San Francisquito Creek (APN 063-471-020) along Woodland Avenue between Euclid Avenue and University Avenue to the City to serve as a public park and contribute $15,000 to the City for design services. The applicant shall provide a Phase I Environmental Site Assessment prior to land dedication, verifying that the project site is appropriate for park-use.
4. The applicant shall maintain the park at the project site in perpetuity.
5. Prior to issuance of certificate of occupancy, the applicant shall make a $25,000 financial contribution to the City to support the creation of a future residential parking permit program or to fund a future TMA.
6. The applicant shall participate in Commute.org’s Certified Development Program as part of the project’s TDM plan.
7. The applicant shall partner with the City to construct a sidewalk and street lighting as required by the City from the project site along West Bayshore Road to the Water Tank site at 375 Donahoe Street. The applicant shall include sidewalk improvements with the off-site improvement plans, which are required to be submitted with building permits.
The developer’s portion of the improvement costs shall be a maximum $125,000.
8. The applicant shall install publicly accessible electric vehicle (EV) chargers within the project’s parking garage or another publicly accessible location agreed upon by the City.
The applicant shall install a minimum of four level-2 chargers and minimum of one level 3-charger.
9. The applicant shall install accessible drinking water fountains within the project site.
Council further discussed a possible condition of approval requiring a five percent increase over any in-lieu fee payment to incentivize the construction of units rather than use of the inlieu fee. This requirement is being incorporated into the Development Agreement to avoid conflicts between Conditions of Approval and Development Agreement provisions. See below for further discussion.
In addition, to address Council’s comments on Relocation Plan implementation, staff is recommending the following conditions of approval.
10.The applicant shall provide information on Relocation Plan implementation to the Rent Stabilization Board on a bi-monthly basis so the Rent Stabilization Board can oversee implementation of the Relocation Plan. Tenants may report any grievances with Plan Implementation to the Rent Stabilization Program staff so the issue may be presented to the Rent Stabilization Board for review and resolution. It is anticipated that the Rent Stabilization Board will hold bimonthly meetings on Relocation Plan implementation for the first 8 months of implementation.
11.The applicant shall provide written notification in both English and Spanish to all affected households of each Rent Stabilization Board meeting which includes the Relocation Plan as an agenda item at least 72 hours prior to the meeting.
12.During implementation of the Relocation Plan, the applicant shall provide copies of all forms sent to and received by tenants to the Rent Stabilization Program staff within one week of mailing/hand delivery or receipt.
13.During implementation of the Relocation Plan, the applicant shall provide Rent Stabilization Program staff with a bimonthly report, in a form approved by the Rent Stabilization Board, including, but not limited to, on-site occupancy (through demolition), how households have chosen to participate in the Relocation Plan (e.g. temporary apartment in Woodland Park, temporary apartment elsewhere, or relocation payment), which households remain undecided, and which households (if any) have left without utilizing relocation benefits.
14.Within one week of project approval, the applicant shall send notice of project and relocation plan approval to all households at the project site and those participating in the Optional Tenant-Requested Move (OTRM) program. This notice shall readvertise the OTRM program for any households who wish to move to temporary units on a faster timetable. A copy of this notice shall be sent to Rent Stabilization Program staff.
15.The applicant shall resubmit the Relocation Plan to staff incorporating all errata changes for staff’s approval within 30 days of approval of the Plan.
16.Within three weeks of staff’s approval of the finalized Relocation Plan, the applicant shall send a copy of the Relocation Plan to all eligible households in both English and Spanish.
17.The applicant shall provide a waiver with all move out documentation for tenants who move out without participating in the OTRM program prior to being sent the notice of termination of tenancy. The waiver shall include an acknowledgement that by moving out prior to receiving notice of termination of tenancy, the tenant relinquishes rights to relocation benefits, including relocation payments, temporary replacement apartments, and right of return units. A copy of this form shall be provided to Rent Stabilization Program Staff.
Development Agreement Revisions
One revision is suggested to the Development Agreement (DA) to address issues raised by Council. Per Council’s direction, staff has added a requirement in the errata sheet that the applicant pay an additional 5% over the total in-lieu fee required if less than 89 units are constructed within the offsite affordable housing project.
Penalty for Permanent Restriction of Safety Net Units
As the DA is currently structured, if building permits for the offsite affordable housing project are not issued prior to the end of the DA’s term, the affordability restriction on the safety net units (existing units owned by the applicant in East Palo Alto) would become permanent to fulfill the project’s affordable housing requirement. Council discussed a preference to see the off-site affordable housing project constructed and expressed the need for a stronger incentive for ensuring this outcome. Staff attempted to negotiate some deterrents (such as sale of the offsite affordable housing project land to the City) with the developer, but the developer believes any deterrent will impact financing and potentially kill the project. Eden Housing, the applicant’s affordable housing partner, is a reputable housing developer with a strong track record.
Attachments
A. Errata
B. October 4, 2022 City Council Staff Report
C. September 20, 2022 City Council Staff Report
D. September 6, 2022 Staff Report
E. General Plan Amendment Resolution
F. Development Code Amendment Ordinance
G. Zoning Map Amendment Ordinance
H. Resolution Approving Project, Required Findings, and Conditions of Approval I. Ordinance Approving Development Agreement (with Development Agreement) J. Architectural Plans (Click Link Here)
K. TDM Plan and Parking Analysis
L. Relocation Plan
M. Affordable Housing Alternative Compliance Milestones N. Fiscal Impact Analysis
O. Community Impact Report
P. Community Involvement Strategy
Q. General Plan Consistency Analysis
R. Planning Commission Resolution
S. Planning Commission Meeting Public Comments
T. City Council Meeting Public Comments
U. Aggregated Tenant Move Information
V. Applicant Community Benefit Response Letter
W. Applicant Relocation Plan Comment Response Letter