DATE: December 15, 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: AMENDMENT NO. TWO (2) TO TASK ORDER (PLWS-2025-01) WITH PLACEWORKS IN THE AMOUNT OF $44,338 TO
CONTINUE PROVIDING ENVIRONMENTAL REVIEW AND
DOCUMENTATION FOR GILEAD CHESS HATCH MASTER PLAN
LOCATED AT 1155, 1165, AND 1185 CHESS DRIVE, FOSTER
CITY (EA2025-0001)
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing Amendment No. 2 to the original Task Order PLWS-2025-01 with PlaceWorks in the amount of $44,338 (Attachments 1 and 2), to provide next steps in their environmental review and documentation work for the proposed revisions to Gilead Chess Hatch Master Plan, including 800,000 square feet (SF) office use to 800,000 SF of biotechnology or research and development uses, located at multiple addresses (1155, 1157, 1159, 1161, 1163, 1165, 1167, 1169, 1175, 1181, and 1191 Chess Drive); and finding the authorization of the Task Order amendment exempt under CEQA pursuant to CEQA Guidelines Section 15061(b)(3).
EXECUTIVE SUMMARY
On May 19, 2025, the City Council approved City Resolution No. 2025-33 to authorize the Mayor to execute a Task Order (PLWS-2025-01) with PlaceWorks in the amount of $139,919 with a 5% contingency of $6,996 for the total of $146,915 to provide environmental review and documentation, specifically an Initial Study with associated
technical studies, for the proposed Gilead Campus Expansion project (“project”). Since the approval of the original Task Order, PlaceWorks has completed multiple technical studies and attended multiple meetings with staff to discuss the next steps to environmental documentation and analysis.
At this time, based on the preliminary evaluation of the Initial Study, the subsequent path would be to complete an Addendum to the previously approved Environmental Impact Report (EIR) for the original project. This work is beyond the original scope of work from PlaceWorks and therefore, subsequent funding is required.
BACKGROUND/ANALYSIS
The subject site was previously evaluated in an EIR that was certified in November 2009 (State Clearinghouse 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 development of 800,000 SF of new office uses (including flexible space for retail and other amenities), for a net new development amount of 610,000 SF.
On September 3, 2013, the City Council approved a General Development Plan (GDP) to allow up to 800,000 SF of office, biotechnology, or research and development (R&D) on the Chess-Hatch property via City Ordinance No. 573, followed by Planning Commission approval of the Use Permit for the Project. However, the project was never built, and all associated entitlements expired.
On February 14, 2025, Gilead Sciences, Inc. (“applicant”) submitted a Preliminary Review (PR2025-0003) application for the project (“project”) on the subject site. On May 19, 2025, the City Council adopted a City Resolution No. 2025-33 and approved the Task Order (PLWS-2025-01) with PlaceWorks in the amount of $139,919 and authorizing a 5% contingency in the amount of $6,996 for a total of $146,915 to provide environmental review and documentation (Initial Study) for the Chess Hatch Redevelopment Project (Attachment 3).
Subsequently, on June 24, 2025, the applicant submitted formal applications for a GDP Amendment (RZ2025-0005) to facilitate 800,000 square feet of R&D, a Use Permit Application (UP2025-0012) for Phase I to include up to 200,00 square feet for R&D facility (“New Chess Facility, B1165 Building”) to support the R&D activities with ancillary office uses and new surface parking lot, followed by an application for Vesting Tentative Parcel Map (RS2025-0002) to reconfigure three (3) lots.
The scope of the proposal with PlaceWorks included preparation of an Initial Study and various technical studies for the proposed project under CEQA. Subsequent to approval of the original Task Order PLWS-2025-01, the consultant has been working on a draft Initial Study and multiple technical studies (i.e. Phase I Environmental Site Assessment, Cultural Resource study, Transportation Vehicle-Miles-Travelled Study, Water Supply Assessment, and etc.) and has attended multiple meetings with staff to discuss next steps to environmental documentation and analysis. As part of the technical studies work, the City Manager authorized and approved the use of the full contingency amount in the original Task Order through Amendment No. 1 for additional peer review of technical studies required for the Initial Study.
Based on the preliminary evaluation of the Initial Study, it has been determined that the subsequent path for the CEQA document would be to prepare an Addendum to the previously approved EIR for the original project. An addendum to an EIR is a document that addresses technical changes to a project after the original EIR was certified and those changes do not create new significant environmental impacts or substantially increase the severity of previously identified ones, and therefore do not trigger the need for a subsequent or supplemental EIR. Since the task for preparation of an Addendum and other documentation was not included in the Original Task Order with the consultant, staff is recommending approval of Amendment No. 2 to the previously approved Task Order PLWS-2025-01 in the amount of $44,338 for the preparation of the Addendum. All costs associated with the review of development projects and CEQA analysis will be paid by the project applicant.
CEQA
The request for approval of the Task Order is exempt per CEQA Guidelines Section 15061(b)(3), Common Sense Exemption (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.
FISCAL IMPACT
Development projects are 100% cost recovery paid for by the applicant through a passthrough agreement planning fee deposit account (EA2025-0001). Additionally, the City would charge the standard 15% administrative fees as established in the City’s Master Fee Schedule for managing the work performed by the consultant identified in this Task Order Amendment.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Task Order Amendment and Exhibit A (full scope) Attachment 3 – Resolution 2025-33 and Original Task Order PLWS-2025-01