EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: November 15, 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
Hansom Hom, Deputy Manager, Special Projects
SUBJECT: Woodland Park Euclid Improvements Second Reading of Ordinances Recommendation
1. Waive the Second Reading and Adopt Ordinances enacting the Development Code and Zoning Map amendments (ZC19-002) establishing the Neighborhood Center Overlay District;
2. Waive the Second Reading and Adopt 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, October 4, 2022, and November 1, 2022 City Council meetings.
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. On November 1, 2022, the City Council approved the remaining project entitlements, including adopting a Resolution approving the General Plan Amendment (GP19-001) establishing the Neighborhood Center Overlay Land Use Designation and adopting a resolution approving the Design Review Permit (DR 19-028), Conditional Use Permit (CUP22-003), and Tentative Parcel Map (TTM19-001), 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. Council also waived the first readings and introduced three ordinances, including a Development Code amendment, Zoning Map amendment, and Development Agreement.
Analysis
City Council approved the project entitlements at the November 1, 2022 meeting with additional Conditions of Approval and non-substantive modifications to the Development Agreement, as described below.
Development Code and Zoning Map Amendment Ordinances
The project includes amendments to the Development Code, Zoning Map, and General Plan to create a Neighborhood Center Overlay (NCO) designation to increase density and building heights beyond the currently allowed standards in the High Density Residential (HDR) and Urban Residential (UR) land use designations for the Project site. The NCO District would allow a maximum residential density of 175 units per acre and maximum height of 13 stories or 140 feet (whichever is greater). The NCO designation would support development of higher density housing and encourage mid-rise and high-rise residential development with neighborhood-serving commercial and community uses at the ground floor. Permitted uses would be the same as those in the R-HD and R-UHD zoning districts, with the addition of neighborhood service uses at the ground floor as a permitted use rather than a conditionally permitted use.
The Zoning Map amendment applies the NCO zone to the project site (APNs: 063-282-010; 063-282-020; 063-282-030; 063-282-040; 063-282-050; 063-282-060; 063-282-070; 063-282- 080; 063-282-090; 063-281-020; 063-281-030; 063-281-040; 063-281-100 and 063-281-110).
Any future application for a zone change to the NCO zone would require approval by City Council and consistency with the Westside Area Plan prerequisites and policies. Per Council’s direction, the text within the Development Code Amendment limits the area for future application to properties 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.
City Council adopted the General Plan Amendment by resolution at the November 1, 2022 meeting. The Development Code Amendment Ordinance is included as Attachment A and the Zoning Map Amendment Ordinance is included as Attachment B.
Development Agreement
The City Council directed staff to make the following changes to the Development Agreement.
These provisions have been incorporated.
1. Off-Site Affordable Housing Units (Section 4.5.2 (d)): if fewer than 89 units (minimum off-site affordable housing units) are constructed within the off-site affordable housing project, an additional five percent affordable housing in-lieu fee payment for each of the units not constructed is required.
2. Safety Net Units (Section 4.5.3 (g)): if no offsite affordable housing project is constructed by the time of the DA term expiration, and the affordability restriction on the safety net units becomes permanent, an additional in-lieu fee payment of 25 percent of the affordable housing in-lieu fee in effect at such time for 20 percent the project’s net new units (89 units as proposed) is required.
In addition, Staff made one minor revision to the language presented to Council at the November 1, 2022 meeting. The revision pertains to the provision regarding the in-lieu fee payment amount that would be triggered if the affordability restriction of the safety net units becomes permanent (Section 4.5.3(g)). The language discussed at the council meeting referred to an 89-unit affordable housing requirement (20% of the project’s 444 net new units).
The revised language refers to the 20% net new unit requirement rather than a discrete number of units to ensure internal consistency throughout the document and to index the affordable unit requirement to the actual number of units to be constructed. The changes above have been incorporated into the Development Agreement (Attachment C).
Additional Conditions of Approval
The City Council added the Conditions of Approval below to the project. Text in strikethrough and underline reflects modifications made by Council at the November 1st hearing, while the other conditions of approval were included as Attachment A to the November 1st staff report.
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 9,300 square foot 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.
If located in the public right of way, the applicant will have a maximum contribution of $50,000. 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 park.
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.Applicant shall give notices to the tenants within 30 days of entitlement becoming final of the option to move immediately and encourage tenants to move. Beginning May 1, 2023, in order to ensure the continued safety of the remaining tenants, within thirty days of fewer than one-third of the total project units being occupied, the Applicant must give Ellis Act notices of termination of tenancy to all remaining tenants and shall comply with all requirements of the EPA Municipal Code and State law for removing the rental units from the rental market. Once the Property is vacant, Applicant shall secure the property to prevent unauthorized entry. 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. 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.
18.Within 30 days of project approval, the applicant shall enter into a reimbursement agreement with the City to provide funds to hire an independent contractor to verify the tenancy data provided by the applicant. The developer shall reimburse the City for all costs connected with an independent audit.
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 Code, Zoning Map, and Development Agreement ordinances. 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 a new public park, community function space, bus stop improvements, water tank and infrastructure, storm drainage improvements, and dedication of roadway.
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 $1,109,000 in annual General Fund revenues in excess of the estimated annual General Fund expenditures required for the City to provide services to the project. 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 local newspaper on August 26, 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 at http://eastpaloalto.iqm2.com/Citizens/Default.aspx. The project website was updated with meeting information.
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 Statement of Overriding Considerations and 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 October 4, 2022 Public Hearing.
Attachments
A. Development Code Amendment Ordinance
B. Zoning Map Amendment Ordinance
C. Ordinance Approving Development Agreement (with Development Agreement)