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7.2 Staff Report

Foster City City Council
August 18, 2025

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7.2 Staff Report
Meeting
August 18, 2025
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Foster City City Council
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DATE: August 18, 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
Thai-Chau Le, Planning Manager
DEPARTMENT: Community Development
SUBJECT: PROPOSED MODIFICATION TO PREVIOUSLY APPROVED

GENERAL DEVELOPMENT PLAN AMENDMENT AND SPECIFIC

DEVELOPMENT PLAN/USE PERMIT FOR RESEARCH AND

DEVELOPMENT (R&D) LIFE SCIENCES OFFICE USE LOCATED
AT 388 VINTAGE PARK DRIVE – APN 094-901-270 – W-SW 388
OWNER IX, L.P. STEELWAVE CDS, LLC

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 proposed amendments to a previously approved ±124,395-square-foot research and development (R&D) Life Science Office use at 388 Vintage Park Drive to the City Council and public and receive feedback prior to initiating the entitlement process.

The applicant is proposing two (2) options for the subject site, one of which is subject to the Development Project Preliminary Review procedures which the Council may discuss.

EXECUTIVE SUMMARY
On May 23, 2025, SteelWave and Helios Real Estate Partners (“applicant”) submitted a Preliminary Review application (PR2025-0004) requesting an amendment to the original entitlements for the 124,395 square-foot R&D Life Science Office use at 388 Vintage Park Drive, as follows:

Option A:

Remove the previously approved required mechanical stackers and make it an optional requirement based on tenant demand, resulting in a further reduction in the number of proposed parking spaces from 210 to 179 spaces, with no other changes to the original entitlements. Option A would require a Use Permit Modification to amend UP2021-0023 and associated environmental review, subject to Planning Commission final approval.
Option B:

Addition of one more story of ±30,000 SF of R&D space, resulting in the construction of a ±155,000 SF, a five-story, 95-foot tall building, and make the previously approved mechanical stackers an optional requirement based on tenant demand, resulting in further reduction in the number of proposed parking spaces from 210 to 179 spaces.

Option B would require an amendment to the General Development Plan (RZ2021- 0003), General Plan Amendment for the Research/Office Park Land Use Designation, and associated environmental review, all subject to final approval by the Council.

Option B would also require a Use Permit Modification to amend UP2021-0023, subject to Planning Commission final approval.

Chapter 17.72, Development Project Preliminary Review Procedures, of the Foster City Municipal Code (FCMC), establishes preliminary screening of development projects involving proposed general plan, general development plan, or zoning ordinance amendments (“prescreening”).

As noted above, the proposed Option B includes an amendment to the GDP and a General Plan Amendment. 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. No item 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.

It shall be noted that Option A is included in the staff report for informational purposes and is not subject to the provisions of Preliminary Review Procedures pursuant to Chapter 17.72.

BACKGROUND
On September 19, 2022, the City Council took the following actions for the subject site, including:

1. Certifying the Final Environmental Impact Report (EIR) including adoption of findings under the California Environmental Quality Act (CEQA) and Standard Conditions of Approval and Mitigation Monitoring and Reporting Program (SCAMMRP) for the proposed approximately 124,395 SF, four-story 81-foot tall Research and Development (R&D) Life Sciences Office use located at 388 Vintage Park – EA2021- 0001;

2. Adopting an Ordinance amending the Foster City Zoning Map to modify the previously approved General Development Plan (GDP) for the ±132-acre lands known as Vintage Park to allow the proposed development of 388 Vintage Park Drive – RZ2021-0003; and

3. Approving an appeal to overturn the decision of the Planning Commission and approved a Specific Development Plan/Use Permit for the 124,395 square-foot R&D Life Science Office use at 388 Vintage Park Drive – UP2021-0023.

The original entitlements comprised the following:
Demolition of an approximately 10,120-square-foot vacant commercial building, formerly occupied by El Torito restaurant.
Construction of approximately 124,395 SF building, with approximately 95,930 square feet specific to R&D office space, a four-story building with three (3) stories of life sciences office use over one (1) level of parking.
Ground-level parking podium and surface parking totaling 210 vehicle parking spaces, including 75 stalls within mechanical stackers, 16 motorcycle stalls, and 20 bicycle stalls.
An outdoor roof terrace at the 4th level for employee amenity use. Ingress-egress via two (2) existing curb cuts, one (1) on Vintage Park Drive and one (1) on Chess Drive.

The Use Permit (UP2021-0023) was valid for two (2) years, expiring on September 19, 2024.

The applicant applied for a building permit on November 18, 2022, which is currently under review. The applicant received comments on its 6th building permit submittal in March 2025.

Additionally, in accordance with the Foster City Municipal Code section 17.06.180, the applicant also applied for an extension to the Use Permit. The Use Permit extension is valid until September 19, 2026.

The applicant has indicated that since the entitlement process began, they have continuously assessed tenant demand and market conditions and believe that additional flexibility is necessary to ensure the proposed project remains responsive and competitive in the life sciences leasing market (Attachment 1). Therefore, they are requesting amendments to the original entitlements that would allow them to construct either Option A or Option B, as mentioned above, and secure a tenant.

ANALYSIS

PROJECT SITE
The subject 2.2-acre site is located at the northwest intersection of Vintage Park Drive and Chess Drive at the municipal boundary between Foster City and San Mateo, which runs along the western edge of the subject site (see Figure 1). The subject site also lies within the Vintage Park Community Association (VPCA) district. The project site is bordered to the north by a commercial building, Vintage Park Drive to the east, a small park owned by VPCA, and Chess Drive to the south, and the Home Depot commercial building to the west. Further east of the project site are commercial and hotel uses, as well as the Foster City Boulevard on- and off- ramp for SR 92.

Figure 1. Location Map; Source: Nearmap.com
The General Plan land use designation for the subject site is Research/Office Park, and the Zoning is C-M/PD (Commercial Mix District/Planned Development Combining District). The subject site is part of the 57-acre portion of the overall 132-acre Vintage Park GDP. The GDP was last amended on October 3, 2022, via Ordinance 652 (Attachment 2).

APPLICATION TIMELINE
On May 23, 2025, the applicant submitted a Preliminary Review application (PR2025-0004) requesting an amendment to the existing entitlements to include two (2) options.

The proposal was scheduled for an Interdepartmental Evaluation Committee (IDEC) Meeting on June 25, 2025, to provide some preliminary feedback to the applicant from various departments. On July 2, 2025, IDEC comments were sent to the applicant. Given the preliminary nature of the proposal, the IDEC comment letter (Attachment 4) included unfulfilled submittal requirements, required supplemental studies and documents, and comments/project considerations from staff.

It shall be noted that Option A is included in the staff report for informational purposes and is not subject to the provisions of Preliminary Review Procedures pursuant to Chapter 17.72 as Option A is only a Use Permit modification and is within the purview of the Planning

Commission. Option B will include components that would be subject to City Council review and approval and further analysis as discussed below.

NOTICING/PUBLIC OUTREACH
The public was advised of this meeting in the following ways:
Notice of the study session in the Foster City Islander – August 6, 2025 Foster City website: www.fostercity.org – July 31, 2025 Posting at all Public Posting Places – July 31, 2025
Noticing to Planning Listserv – August 6, 2025
Mailing to property owners who own property within a 1,000-foot radius – July 30, 2025 GENERAL PLAN – LAND USE
General Plan Land Use Designation: The Property is designated Research/Office Park in the General Plan Land Use and Circulation Element as described below:
“Areas with this designation contain office, research, and development, and manufacturing establishments whose operations are clean and quiet. Mixed-use projects which include some retail and residential uses in addition to office and research uses may, under certain conditions, be considered compatible with this designation. Such conditions include compatibility of uses and project design (land planning, architecture, etc.). Vintage Park, the Lincoln Centre area, the Mariners Golf site, and the Bayside Towers development are all designated for Research/Office Park use. The intensity of development varies, with FARs generally ranging from 0.30 along Foster City Boulevard, to 0.44 for Bayside Towers, to a campus-wide average of 0.79 for the Gilead Campus within Vintage Park. The intensity of development for the vacant Vintage Park sites is anticipated to have an FAR up to 1.0.” Staff comments: According to the General Plan, the subject site is designated for Research/Office Park uses, which is consistent with the proposed use for the subject site in both options A and B.
It shall be noted that the FAR up to 1.0 is applicable to vacant sites. The subject site at the time of adoption of the Land Use and Circulation Element was occupied by restaurant use, and thus, this constraint of 1.0 FAR does not apply. Option A would continue to be consistent with the General Plan’s Research/Office Park Land Use Category and, therefore, no changes in FAR.
Option B will add an additional 30,000 SF of R&D use, which will amount to 1.3 FAR on the site. Thus, this will require a General Plan amendment.

ZONING/GENERAL DEVELOPMENT PLAN (GDP)
The subject site is currently zoned C-M/PD. The C-M district is regulated by Chapter 17.28 of the Foster City Municipal Code, and uses permitted within the C-M district are only those specified within the use permit required in connection with such district. The PD combining district is intended to accommodate a range of development types while offering flexibility by allowing tailoring of City Standards to specific uses (FCMC Section 17.36.010).

The subject site is part of the 57-acre portion of the overall ±132-acre Vintage Park. The Vintage Park GDP was amended over the years to accommodate various land use changes in the Vintage Park area, with the last amendment on October 3, 2022, via Ordinance No. 652, as follows.
Exhibit A – GDP Narrative specific to the subject site includes the following:
c. Within the remaining 57-acre portion of Vintage Park (APNs: 094-904-040; 130; 094- 901-250; -260; -270; -280; -350; -360; 094-902-060; -070; -090; -120; -130; -140; 094- 903-040; 094-905-040; -050; -060; -070; -080; -090; 123-400-010; -020; -030; -040; - 050; -060; 070; -080; -090; -100; -110; -120; -130; -140; -150; -160; -170; -180; -190; and 200) as depicted in Exhibit B, uses shall be limited to allow development of up to ± 202,158 sq. ft. of office space; up to ± 236,763 sq. ft. of research and development space; up to two (2) hotels with a total of 475 rooms of up to ± 353,246 sq. ft.; up to ± 10,803 sq. ft. of restaurant/retail space; and a one-acre lake/open space area, with internal site circulation to be provided in accordance with the plans on file in the Community Development Department.

Staff comments: Option B will add an additional ±30,000 SF of R&D use, which will require approval of the GDP amendment.

FOSTER CITY MUNICIPAL CODE
 Chapter 17.72, Development Project Preliminary Review Procedures Chapter 17.72 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) for Option B.
Use Permit
oFCMC Section 17.36.040 Conditional Uses states that:

A use permit shall be required for any and all uses in a PD district. The planning commission shall not grant a use permit for any use or uses in a PD district unless it finds:

A. Such use or uses conforms to the applicable provisions of the adopted general plan of the city;
B. Such use or uses are shown on the approved general development plan for the particular PD district;
C. That a specific development plan has been submitted which meets all of the requirements as outlined in Section 17.36.050.
oFCMC section 17.06.070 Use Permit- Grant or denial includes that:
“..planning commission shall determine whether or not the establishment, maintenance or cooperation of the use applied for will, under the circumstances of the particular case, be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such proposed use, or whether it will be injurious or detrimental to property and improvements in the neighborhood or the general welfare of the city. If the planning commission finds that the aforementioned conditions will not result from the particular use applied for, it may grant the use permit. Parking
Pursuant to FCMC section 17.36.060, the Planning Commission may grant deviation from the required parking ratio, based upon a parking analysis (see FCMC for requirements of the analysis), a parking demand study and that any such request for reduction of off-street parking capacity may be satisfied by providing a transportation systems management plan (TSM)/travel demand management (TDM) program outlined in section 17.62.060.D.3.

Staff conducted a preliminary review of both options in the proposal and have determined process and areas where additional analysis may be required should the project proceed with a formal application. Under both options, the parking reduction requested is subject to a Use Permit modification which is subject to Planning Commission review and approval pursuant to FCMC Section 17.06.070. Specifically, Option A is not subject to the provisions of Preliminary Review Procedures pursuant to Chapter 17.72 and is within the purview of the Planning Commission for the parking reduction proposal. Therefore, the analysis below focuses on Option B.

Option B
The applicant is also proposing, as an alternative to Option A, an additional floor of approximately ±30,000 square feet of R&D use, for a total of ±155,000 SF building, and including the mechanical stackers as an optional additional parking based on tenant demand. This would further reduce the parking ratio from the previously approved project while adding more square footage (see Attachment 3).

Figure 2: Option B Illustrative Site Plan with an additional 30,000 R&D use (Attachment 3) Figure 3: Option B Illustrative Rendering View
Option B would require the following entitlements from City Council:
General Plan Text Amendment
Amendment to the Research/Office Park Land Use Category to amend the maximum allowable FAR for the site.
General Development Plan/Rezoning
Amendment to the Vintage Park GDP to allow for additional ±30,000 SF of R&D.

Environmental Assessment
The original project was evaluated in an EIR that was certified on September 19, 2022.

Based on the preliminary review of the current proposal, staff would need to determine if the EIR can be relied upon through a supplemental EIR or Addendum or if a new environmental analysis needs to be prepared.

Option B would also require the following entitlements from Planning Commission:
Specific Development Plan/Use Permit
Use Permit modification for additional R&D use and reduced parking ratio or optional mechanical stackers for additional parking only upon tenant demand to be reviewed concurrently with or following the GDP/Rezoning application.

POLICY CONSIDERATIONS (APPLICABLE TO OPTION B)
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. Amendment to the General Plan Land Use and Circulation Element As noted above that the subject site is designated Research/Office Park in the General Plan Land Use and Circulation Element and it includes that:

The intensity of development varies, with FARs generally ranging from .30 along Foster City Boulevard, to .44 for Bayside Towers to a campus-wide average of .79 for the Gilead Campus within Vintage Park. The intensity of development for the vacant Vintage Park sites is anticipated to have an FAR up to 1.0.

For Option B, the applicant is proposing to add an additional floor of approximately ±30,000 square feet of R&D use. If the subject site is considered as a vacant site, it is limited to FAR 1.0. With the additional 30,000 SF added to the proposed building, the proposed FAR will be 1.3.

Staff comments: The proposed increase in FAR will trigger an amendment to the General Plan Land Use and Circulation Element.

2. 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.

The applicant is proposing amendments to original entitlements noting that additional flexibility is required to make the Project as responsive and competitive as possible in the life science leasing market (Attachment 1).

Staff Comments: The proposed amendments reflect an adaptive approach to entitlement to allow the proposed project to better respond to current leasing trends in the life science sector, securing a potential tenant and thereby, supporting the need for change in land use as appropriate.

3. 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 EIR for the original entitlements noted that the proposed project would accommodate approximately 213 employees (450 SF/employee). An addition of ±30,000 SF of R&D use in Option B will add approximately 66 more jobs.

4. 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: 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 building, including additional R&D use of ±30,000 SF.

5. On-Site Vehicular Circulation
General Plan Policy LUC-E-5 includes:

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.

Vehicular access to the site will be via two (2) existing curb cuts, on Chess Drive and Vintage Park 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, with the additional ±30,000 SF of R&D use. In the IDEC letter dated June 25, 2025, the Public Works Department has noted that a revised traffic study will be required.

Additionally, staff have also requested a narrative on circulation for Option B.

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 proposes the following parking for the proposed project, as included in Table 2 below.

Table 1. Option B - Parking Reduction Breakdown
Option B
Required parking per
FCMC 17.62.060.B.5.c
Proposed parking Proposed % reduction
416 179 56.97%
408* (with credits) 179 56.13%
408* (with credits) 179 + 31 optional stackers = 210 48.53% Staff comments: Pursuant to FCMC Sections 17.36.060 and 17.62.060.D.3, staff have requested a parking study and a TDM plan in the IDEC letter. Staff will present the findings and recommendations to the Planning Commission for consideration, prior to making a final decision on Option B. It should be noted that a Use Permit, even if approved, under Planning Commission shall only be effectuated upon an approval of the associated GDP and General Plan Amendment.

7. Estero Municipal Improvement District (EMID) Services - Water and Sewer The following factors need to be considered further in evaluating the feasibility of Option B:
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. An updated 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 June 25, 2025, added a comment, “Revised water and wastewater capacity studies will be required.”

8. Estero Municipal Improvement District (EMID) Services - 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) do 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: At the time of the approval of original entitlements, the Water Neutrality Ordinance was not adopted. However, Option B will be subject to EMID Code 8.90 Water Neutrality Growth Ordinance. The applicant is required to complete the Water Neutrality Calculator to determine the initial new water demand/offset requirement and comply with the requirements.

9. Updated Environmental Review
The original entitlement was evaluated in an EIR that was certified in (SCH No. 2021070398). The EIR analyzed the demolition of a single-story 10,120-square-foot restaurant building and the construction of an approximately 95,931 square feet of “B occupancy” R&D office building, including a ground-level parking garage with approximately 210 vehicle parking spaces.

Staff comments: Based on the preliminary review of Option B, staff has determined that an analysis must be done to determine if the EIR can be relied upon through a supplemental EIR or Addendum, or if a new environmental analysis needs to be prepared.

Staff will ask for expert verifications that previously analyzed and disclosed impacts in the EIR to areas such as traffic, air quality, and noise.

10. Fiscal Impact
Should the project continue forward towards Council approval, the development impact fees will be applicable to Option B. 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 2. Generated Impact Fees (Approximately)
Fee Type Original Entitlements (~95,000
square feet total of Industrial
Use)
Option B (30,000 square feet
addition for ~125,000 square
feet total of Industrial Use)
Commercial Linkage Fee $2.9M $923,400
Parks Facilities Impact Fee $342,000 $108,000
Public Safety Impact Fee $36,100 $11,400
Transportation Impact Fee $115,900 $36,600

NEXT STEPS
The next step would be for the applicant to provide the technical studies as noted above including parking study, revised water and wastewater capacity studies, water neutrality calculator, etc. for staff’s review. Staff will then schedule a Planning Commission Study Session.

CEQA
The request to obtain early preliminary comments from the public and city decision makers is exempt per CEQA Guideline Section 15061(b)(3), Common Sense Exemption. See #8 under Policy Considerations (Analysis) above for discussion should a formal project application is submitted.

FISCAL IMPACT
See #9 under Policy Considerations (Analysis) above.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:

Attachment 1 – Request from the applicant
Attachment 2 – City Council Ordinance No. 652
Attachment 3 – Plans For Options A and Option B
Attachment 4 – IDEC letter

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