DATE: June 16, 2025
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Sofia Mangalam, Community Development Director
Helen Gannon Telfer, Senior Planner
DEPARTMENT: Community Development
SUBJECT: PROPOSED GILEAD CAMPUS EXPANSION PROJECT IN THE
CHESS DRIVE/HATCH DRIVE AREA INCLUDING PHASED
DEMOLITION OF TWELVE (12) EXISTING OFFICE BUILDINGS
(TOTALING 191,507 SQUARE FEET (SF)), TOGETHER WITH
THE CONSTRUCTION OF UP TO A MAXIMUM OF 800,000 SF
BIOTECHNOLOGY OR RESEARCH AND DEVELOPMENT USES,
IN ADDITION TO A SINGLE, STANDALONE, MULTI-STORY
PARKING GARAGE AT 1155, 1165, 1185 CHESS DRIVE
INTRODUCTION
Pursuant to Chapter 17.72, Development Project Preliminary Review Procedures, of Title 17, Zoning, of the Foster City Municipal Code (FCMC), the purpose of this meeting is to introduce the proposed Gilead Campus Expansion Project in the Chess Drive/Hatch Drive area to the City Council and public and receive feedback prior to initiating the entitlement process. The Gilead Campus Expansion Project proposes phased demolition of twelve (12) existing office buildings (totaling 191,507 SF), together with the construction of up to a maximum of 800,000 SF biotechnology or research and development uses, in addition to a single, standalone, multi-story parking garage at 1155, 1165, 1185 Chess Drive. No formal action will be taken at this meeting.
EXECUTIVE SUMMARY
On February 14, 2025, Gilead Science, Inc. (“applicant”) submitted a Preliminary Review application (PR2025-0003) for the proposed Gilead Campus Expansion project (“project”) on
the subject property located at 1155, 1165, and 1185 Chess Drive to support its long-term expansion in the City.
The subject property is designated as Chess/Hatch Office Research in the General Plan and zoned as CM/PD (Commercial Mix/Planned Development) with a Chess Hatch General Development Plan (GDP) via Ordinance No. 573.
The proposed project would proceed in two (2) phases (see pages 3-5 of the staff report).
The applicant is requesting the following entitlements:
•An Amendment to the GDP for the Chess-Hatch Master Plan •A Vesting Tentative Map
•A Use Permit/Specific Development Plan for only Phase #1.
Chapter 17.72, Development Project Preliminary Review Procedures, of FCMC, establishes preliminary screening of development projects involving proposed general plan, general development plan, or zoning ordinance amendments (“prescreening”). The proposed project includes an amendment to the GDP (zoning ordinance amendment) in addition to other land use actions. Therefore, the proposed project is being presented to the City Council in a study session to solicit initial comments/ feedback. No formal action will be taken at this meeting. Nothing in this current review procedure grants in any binding determination of the rights, interests, or entitlements of the City, project proponent, or any interested person with respect to this project upon which preliminary review is conducted.
BACKGROUND
The subject site is approximately 11.9 acres in size and has a long history, as it relates to the current land use designation, established in 2006, and the GDP, which was established via Ordinance No. 573 in 2013.
A full, comprehensive history of the site/project (from 2006-2024) can be reviewed in Attachment 1.
ANALYSIS
The subject site is made up of three (3) parcels as follows: 094-010-500 (4 acres), 094-010- 510 (5 acres), and 094-010-100 (2.90 acres). Together, the three (3) sites make up the Chess Hatch property, totaling approximately 11.9 acres of land bounded by Chess Drive, Foster City Boulevard, and State Route 92. The current site includes 12 vacant one-and-two-story commercial/light industrial buildings (totaling approximately 191,500 SF) and surface parking.
Figure 1. Chess Hatch Property (Nearmap, 2025)
On February 14, 2025, the applicant submitted a Preliminary Review application (PR2025- 0003) for the Gilead Campus Expansion project on the subject property located at 1155, 1165, and 1185 Chess Hatch Drive.
The proposed project would proceed in two (2) phases:
•Phase #1: Demolition of eight (8) of the 12 existing office buildings (approximately 123,536 SF) and construction of a two-story building up to approximately 200,000 SF in size with surface parking.
Chess Drive
State Route 92
Foster City Blvd
094-010-500
4 acres
094-010-510
5 acres
094-010-100
2.9 acres
Figure 2. Graphic of Phase One (Gilead Conceptual Plans) Figure 3. Graphic of Phase One (Gilead Conceptual Plans) •Phase #2: This phase would consist of the demolition of the remaining four (4) existing buildings (approximately 67,971 SF) and the construction of one (1) R&D building up to a maximum of approximately 600,000 SF and up to 190 feet in height, together with one (1) multi-story parking garage. The new building would replace some of the surface parking used in Phase #1.
Figure 4. Graphic of full build out including Phase 2 (Gilead Conceptual Plans) Figure 5. Graphic of full build out including Phase 2 (Gilead Conceptual Plans) See Attachment 2 for the detailed project description from the applicant.
The proposal was scheduled for an Interdepartmental Evaluation Committee (IDEC) Meeting on March 5, 2025, to provide some preliminary feedback to the applicant from various departments. On April 3, 2025, IDEC comments were sent to the applicant. Given the preliminary nature of the proposal, the IDEC comment letter (Attachment 3) included unfulfilled submittal requirements, required supplemental studies and documents, and comments/project considerations from staff.
NOTICING/PUBLIC OUTREACH
The public was advised of this meeting in the following ways:
•Notice of the study session in the Foster City Islander – June 4, 2025 •Electronic mailing to the project applicant – June 3, 2025 •Foster City website: www.fostercity.org – May 29, 2025 •Posting at all Public Posting Places – May 30, 2025
•Noticing to Planning Listserv – May 30, 2025
•Mailing to property owners who own property within a 1,000-foot radius – May 30, 2025
GENERAL PLAN - LAND USE
General Plan Land Use Designation: The Property is designated as Chess/Hatch Office Research in the General Plan Land Use and Circulation Element as described below:
“Areas with this designation allow commercial, office, industrial, biotechnology, and other such compatible uses, including vehicle parking in both parking structures and at-grade parking lots on the project site. Incompatible uses such as housing, schools, day care, and other uses serving primarily children are prohibited. Vertically and horizontally mixed-use developments that maximize the use of land, organize land uses and pedestrian/vehicular circulation in a safe, logical and functional manner and establish a safe, logical and functional design relationship with adjacent land uses is allowed within this designation. Uses must meet the requirements of Chapter 17.68, General Performance Standards, of Title 17, Zoning, of the Foster City Municipal Code. FARs for developments in this area would range from 0.6 to
1.55 FAR.” (page 3-18 of General Plan adopted on February 1, 2016).
Staff Comments: The proposed project request to allow biotechnology (R&D) uses, and the proposed revision to the GDP to remove “office” use, is consistent with the General Plan land use designation for the subject site. In addition, the applicant is proposing, at complete build- out, a total Floor Area Ratio (FAR) of 1.54, which is within the allowable limits of the General Plan FAR of 1.55.
Zoning: The subject site is zoned C-M/PD (Commercial Mix/Planned Development), and the GDP for the subject site was approved via Ordinance No. 573 with the following attached exhibits. The applicant is proposing the amendments to the GDP (Attachment 2) and further described below:
•Exhibit A – GDP Narrative for the Chess Hatch Master Plan as follows:
“The City of Foster City Zoning Map is hereby amended to reclassify the +/- 11.9-acre land bounded by Chess Drive, Foster City Boulevard, and State Route 92 (APNs: 094- 010-100, -500, -510) to change the Zoning designation from M-1/PD (Light Industrial/Planned Development) to C-M/PD (Commercial Mix/Planned Development) with a General Development Plan to allow up to 800,000 square feet of office, biotechnology, or research and development uses and parking structures and at-grade parking lots; accessory uses, such as commercial, industrial or light assembly uses which are incidental or supportive to the primary office, biotechnology or research and development uses; or other uses which, in the opinion of the planning director, are similar to and no more offensive than the above-listed uses; with up to 5,000 sq. ft. of the total Project square footage to be used for retail, restaurant or other business-supporting ancillary commercial amenities; except that the following uses are excluded: housing, schools, day care, and other uses primarily serving children.” The applicant is requesting the proposed changes to the Chess Hatch GDP to remove office use from the allowable uses. The total developable square footage will remain unchanged. •Exhibit B: GDP graphic for the Chess Hatch Master Plan. A site plan for the proposed development with general height and setbacks.
The applicant is requesting to delete this Exhibit and include a new/updated site plan since the graphic on this Exhibit pertains to the original project plans approved by the City in 2013.
•Exhibit C: GDP Limitations for the Chess Hatch Master Plan. This exhibit includes language to ensure compliance with mitigation measures included in the Supplemental EIR and other conditions in the Chess Hatch Master DA.
The applicant is requesting to remove reference to the expired DA and update language as necessary pertaining to Mitigation Measures, since the Initial Study has been initiated for the proposed project, and it might amend existing measures or add new measures. •Exhibit D: Project Phasing Exhibits.
The applicant is requesting to replace the previous site plan and phasing as it pertains to the original project approved by the City in 2013 with an updated phasing graphic.
Staff comments: The proposed changes to the GDP as explained above, while maintaining the same full buildout at the subject site will require approval of the GDP amendment and associated CEQA documents.
Foster City Municipal Code
Chapter 17.78 General Performance Standards
General Plan land use designation for the subject site, Chess/Hatch Office Research, includes that the uses in this designation shall comply with the requirements of FCMC Chapter 17.68, General Performance Standards.
Staff comments: The applicant will be required to meet the City’s standards related to:
transportation, storage and disposal of all inflammable and hazardous materials; noise; vibration; air pollution; and other performance standards during the construction of the project and throughout the operation of the proposed buildings. On May 19, 2025, the City Council approved a Task Order with PlaceWorks, Inc. to provide environmental review and documentation (Initial Study) for the proposed 800,000 SF of biotechnology or research and development uses at the subject site. PlaceWorks in their proposal has included preparing the following technical studies: Air Quality, Greenhouse Gas Emissions, and Energy; Cultural Resources; Hydrology and Water Supply; Noise and Vibration; Shadow and Transportation.
These technical studies will guide staff in evaluating the project for the applicable performance standards.
POLICY CONSIDERATIONS
Based on the goals and vision of the General Plan, the project description and other documents submitted to date, staff identified the following General Plan policies and other topics which need to be considered during the review and analysis of the project.
1. Periodic Monitoring of Land Uses Throughout the City General Plan Policy LUC-C includes
“Periodically monitor land uses throughout the City to determine when changes in land use may be appropriate, actual land use practices, economic practicality of maintaining current land uses and level of property maintenance. Specific future actions might include:
a. Revitalization of older neighborhood retail centers. b. Changes in land use designations and zoning where necessary to respond to changes in economic conditions and/or City needs.
c. Meeting with property owners to discuss possible redevelopment opportunities and constraints, especially in the Chess Drive/Hatch Drive area and along the northeast side of Foster City Boulevard.
General Plan policy LUC-K includes:
Encourage the aggregation and redevelopment of under-utilized properties and/or outdated buildings under multiple ownerships in the older commercial/industrial areas of the City, specifically the Chess Drive/Hatch Drive area.
Staff Comments: The proposed project will redevelop an underutilized site by demolishing long-vacant buildings and constructing a new R&D facility, which is consistent with the subject site’s land use designation. This proposal conforms with the Land Use and Circulation Element policies noted above by replacing vacant and deteriorating structures with modern R&D buildings and bringing economic vitality to the Chess Hatch area and surrounding neighborhood.
2. Jobs/Housing Balance
General Plan Policy LUC-C-2 includes:
The City will continue to strive to maintain a balance between the number of jobs in the City and the number of housing units available to house workers. To achieve and maintain such a balance, the City will encourage and support, through other policies and programs of this Element and the Housing Element, mixed use projects which provide both housing and employment opportunities, and whenever possible, the development of affordable housing.
Staff comments: The 2009 Chess Hatch Master Plan Fiscal Impact Analysis Final Report prepared by Economics Research Associates (ERA) estimated square footage per employee at build-out using industry standards for office commercial space (one employee per 350 SF of space). The original project estimated total number of employees on-site to increase substantially from 380 to approximately 2,290 persons.
It is implied that an office use tends to generate more employees per square foot than an R&D use because R&D space requires more space for labs, specialized equipment etc. (typically one employee per 500 SF of space). However, staff would like to see a comparison of jobs as well as total employee count between the two (2) scenarios, including option 1: 800,000 SF of office, biotechnology, or research and development uses; vs option 2: 800,000 SF of office use only.
On June 5, 2025, staff requested an updated Fiscal Impact Analysis from qualified consulting firms for the proposed project.
3. Assure Safe Commercial and Industrial Uses
General Plan Policy LUC-F includes that:
Assure Safe Commercial and Industrial Uses Ensure that commercial and industrial uses are safe and strictly control any industrial by-products, odors or emissions which may adversely affect the health or safety of Foster City residents or workers and the overall environment in Foster City, as provided in Chapter 17.68, General Performance Standards of the Foster City Municipal Code.”
Staff comments: As noted earlier, the applicant will be required to meet the City’s standards related to: transportation, storage and disposal of all inflammable and hazardous materials; noise; vibration; air pollution; and other performance standards during the construction of the project and throughout the operation of the proposed buildings. The technical studies prepared for the Initial Study will guide staff in evaluating the proposed project for the applicable performance standards.
4. Traffic and Transportation Impacts
The Land Use and Circulation Element evaluated several intersections during morning and evening off-peak hours under existing conditions and cumulative plus General Plan buildout conditions, including the intersection of State Route 92 ramps and Chess Drive.
General Plan Policy LUC-F includes that:
The City shall seek to achieve a traffic service level of “C” or better on City streets and level of “D” or better during peak traffic hours, although it will be necessary to accept level of service “E” or “F” at the SR 92 Westbound Ramps/Chess Drive, the Foster City Blvd./Metro Center Blvd./Triton Drive, Vintage Park Drive/Chess Drive, and the Foster City Boulevard/Chess intersections due to their role as access points to the freeway system. The level of service standard will be maintained through the following means:
a. Intelligent Transportation Systems (ITS)
b. Transportation Demand Management (TDM) for development projects c. Capital Improvement Program and coordination with federal, state, county and district funding programs for street
and other transportation improvements.
d. Developer payment of pro rata fair share of traffic improvement costs for new developments.
The LOS of an intersection is a qualitative measure used to describe operational conditions. LOS ranges from “A” (best), which represents minimal delays experienced by roadway users, to “F” (worst), which represents heavy delays experienced by roadway users and a facility that is operating at or near its functional capacity.
The applicant has provided a “Preliminary Transportation Impact Study Results” prepared by Kimely-Horn (Attachment 4). For the purpose of the study, the traffic consultant used custom (project-specific) trip rates provided by Gilead, derived and utilized in the Gilead Sciences Integrated Corporate Campus Master Plan Subsequent Environmental Impact Report (Gilead Campus Master Plan SEIR). A trip reduction of 23.3% was applied to the Project to reflect the implementation of the Gilead Integrated Campus TDM program.
The Study concludes that all study intersections operate at LOS standards that are consistent with Foster City standards and plans (as shown in Table 1).
Table 1: LOS Analysis
Staff comments: Staff will engage a Traffic Engineer to peer review the study prepared by Kimley-Horn and confirm whether the approach of using ‘custom trip rates from Gilead Campus Master Plan SEIR’ is valid for the proposed project.
Public Works (PW) staff in the initial IDEC response letter dated April 3, 2025, has noted that the existing level of service at the Foster City Blvd. and Chess Dr. intersections at PM peak is LOS E. The existing plus Phase 1 project conditions at the same intersection at PM peak will still have LOS E with an increase in average delay times. However, both the cumulative conditions through 2040, and the full project buildout conditions will have LOS F with a significant increase in the overall average delay times. A study that provides an evaluation of both the LOS and average delay data with the required and recommended TDM measures implemented at each condition is needed for review. As part of the study, future roadway improvements may be identified to mitigate any adverse traffic impacts associated with the project at these key intersections. Such mitigation measures will be incorporated into the conditions of approval for the project.
5. On-Site Vehicular Circulation
General Plan Policy LUC-E-5 includes that:
New commercial and industrial developments shall be designed so that, wherever necessary and possible, entrance to the projects can be gained by way of left- or right- turn only lanes. Only the minimum number of entrance or exit points shall be allowed as are needed to ensure safe and efficient internal traffic flow and to reduce through traffic delays on public roads serving the project.
There are three (3) existing driveways from Chess Drive to the subject property. The applicant proposes adding additional vehicular access from Chess Drive.
Staff comments: Staff will evaluate ingress/egress, vehicular circulation, and traffic safety, as well as the impact on City Streets, intersections, and the immediate neighborhood. PW staff, based on their preliminary review, included that the “driveway near intersection of
Foster City Boulevard & Chess Drive will need to be removed, if not as part of phase I but as part of phase II as it is too close to the intersection.”
6. On-Site Parking
Ensure that adequate off-street parking is incorporated into new and modified projects and designed for safe and effective circulation.
General Plan Policy LUC-G-1, includes:
The City shall continue to incorporate parking and internal circulation design into its overall review of project design. The review shall include compliance with City off-street parking design standards and ratios.
FCMC Section 17.62.600 Off-street parking requirements, list the amount of parking required for R&D at one parking stall for each 300 SF of gross floor area. The applicant is proposing the following parking for the proposed project as included in Table 2:
Table 2: Proposed Parking
Required Parking
per FCMC
section 17.62.600 Proposed Parking
Phase 1 parking
- estimated 180,000 sf to 200,000 sf; exact SF
per final Use Permit
- for this demonstration, 180,000 sf is used for
calculation.
600 157
Full build out - 800,000 sf 2667 694
The applicant has provided a parking study recommending that the Gilead Integrated Campus Master Plan parking rates be used to estimate demand for the proposed Gilead Campus Expansion at Chess/Hatch site. Using Gilead Integrated Campus Master Plan parking rates for the laboratory and applying a 15% reduction per FCMC Section
17.62.060.D.3 to reflect Gilead’s comprehensive TDM program, the expansion at the Chess/Hatch Property would need to provide a minimum of 694 parking spaces for a full build-out.
Staff comments: The Planning Commission may grant a deviation from the requirement of off-street parking. Staff will engage with a qualified Traffic Engineer to peer review the parking study. Upon completion of the peer review, staff will present the findings and recommendations to the Planning Commission and City Council for consideration and prior to making a final decision on the proposed project.
7. EMID Services (Water and Sewer)
The following factors need to be considered further in evaluating the feasibility of the proposed project on the subject site:
a. Potable Water: The availability of adequate potable water to serve the proposed project without causing a diminution of water for existing residents and businesses needs to be evaluated. A Water Supply Assessment study will need to be prepared to determine if there is sufficient infrastructure capacity to serve the project site. b. Sewer Capacity: The District’s existing sewer collection system capacity and its ability to meet additional sewage flow impacts without causing a diminution of service for existing residents and businesses need to be evaluated.
Staff comments: PW staff in the IDEC letter dated April 3, 2025, added a comment, “Water Supply Assessment and Water and Wastewater Capacity studies are required.” Staff will further evaluate the water supply assessment and wastewater/water capacity studies to determine if there is sufficient infrastructure capacity to serve the project site or if any system upgrades to increase capacity are necessary before approval of Use Permit.
8. Water Neutrality Ordinance
On May 1, 2023, the EMID Board of Directors adopted a Water Neutrality Ordinance to implement water reduction regulations for applicable future and new developments to ensure that new development(s) does not adversely affect the City's water supply. The Ordinance requires new development(s), redevelopment or changes in use within the EMID service area that will require a new water service or will increase water demand above the existing water demand level to offset the projected water demand with water efficiency/conservation/retrofit measures to create a neutral impact on the overall water use demand.
Staff comments: The applicant is required to complete the Water Neutrality Calculator to determine the initial new water demand/off set requirement. PW staff in the IDEC letter dated April 3, 2025, added a comment, “Water Neutrality Compliance will need to be achieved as part of the project, with offset calculations being submitted as part of the Use Permit.”
9. Updated Environmental Review
The Chess Hatch Master Plan was evaluated in an EIR that was certified in November 2009 (SCH No. 2008122065) and subsequently amended with an Addendum in 2013.
The Master Plan EIR analyzed the demolition of 190,000 SF of existing buildings and the development of 800,000 SF of new office uses (including flexible space for retail and other amenities), for a net new development of 610,000 SF. On September 3, 2013, the City Council approved GDP to allow up to 800,000 SF of office, biotechnology, or research and development on the Chess-Hatch property via Ordinance No. 573, followed by Planning Commission approval of the Use Permit for the original project.
It should be noted that the technical studies and other requirements for the EIR have changed over the years since the Master Plan EIR was prepared in 2009, particularly those involving transportation impacts, which have transitioned from primarily relying on LOS standards to using Vehicle Miles Traveled (VMT) as a key metric for environmental analysis.
Staff comments: Based on the preliminary review of the current proposal, staff has determined that an Initial Study pursuant to CEQA is required to include updated technical studies pertaining to air quality, noise, hydrology and water assessment, visual quality, greenhouse gas emissions, transportation, cultural and paleontological resources, hazards and hazardous materials, and other environmental factors.
10. Fiscal Impact
Should the project continue forward towards Council approval, the project will generate revenue through Impact Fees (based on the current Master Fee Schedule). The approximate estimate is listed below in Table 3:
Table 3: Generated Impact Fees
Affordable Housing Impact
Fee/Commercial Linkage Fee
$18M
Parks Facilities Impact Fee
$2.175M
Public Safety Impact Fee
$229,000
Transportation Impact Fee
$743,000
Staff comments: In order to assess the complete fiscal impact, staff requested an updated Fiscal Impact Analysis from qualified consulting firms for the proposed project as well as a timeline from Gilead regarding the anticipated completion of full build-out, including Phase 2.
CONCLUSION
Foster City has been home to Gilead Sciences for over three decades. The biopharmaceutical campus headquartered in Foster City is one of the City’s top ten (10) employers. When the Chess Hatch Master Plan and Final EIR were originally approved, the maximum build-out parameters for office and biopharmaceutical laboratory were identified in the GDP. These maximum parameters were established to quantify the review of the EIR and the environmental impacts associated with the project at full buildout.
On the current Gilead campus, Gilead has been expanding its facilities by adding new lab and office buildings, as well as parking structures over the years. Within the Vintage Park area, Gilead recently completed a Wellbeing Center, a private park, adding employee amenities to their campus, as well as a new research and development building at 331 Lakeside Drive and a proposal for a similar lab building at 335 Lakeside Drive is currently under review. As noted in the project description submitted by Gilead on June 6, 2025 (Attachment 2), to continue buildout of the campus and fulfill long-term expansion in the City, Gilead is proposing an amendment to the Chess Hatch GDP, which aims to enhance Gilead’s research capabilities to support its growing pipeline.
NEXT STEPS
In order to review and ultimately approve the proposed amendment to the Chess Hatch GDP, a Planning Commission Study Session will be scheduled where the Planning Commission will consider the following actions:
1) Environmental Assessment (File No. EA2025-0001)
2) Rezoning/General Development Plan Amendment to remove office use 3) Use Permit/Specific Development Plan Application(s) for Phase 1 only.
California Environmental Quality Act
See #9 under Policy Considerations (Analysis) above.
FISCAL IMPACT
See #10 under Policy Considerations (Analysis) above.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:
Attachment 1 – Project History
Attachment 2 – Project Description
Attachment 3 – IDEC Letter
Attachment 4 – Preliminary Transportation Impact Study Results