-1-
4 7
5 3
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY APPROVING AND
AUTHORIZING THE MAYOR TO EXECUTE A PARKING AGREEMENT BETWEEN THE CITY OF FOSTER CITY AND GILEAD SCIENCES, INC. FOR THE PROPOSED GILEAD CAMPUS EXPANSION PROJECT - UP TO 800,000 SQUARE FEET OF RESEARCH AND
DEVELOPMENT (R&D) AND ANCILLARY USES, LOCATED IN THE CHESS DRIVE/HATCH DRIVE AREA (APNs: 094-010-500, 094-010-510, 094-010-100) – GILEAD SCIENCES, INC.
CITY OF FOSTER CITY
WHEREAS, Gilead Sciences, Inc. (“Applicant”) submitted applications for: (i) an Environmental Assessment (EA2025-0001) to evaluate the potential environmental impacts of a proposed project; (ii) a General Development Plan (GDP) Amendment (RZ2025-0005) to amend the Chess Hatch GDP to remove office as a primary use and allow up to 800,000 SF of biotechnology and Research and Development (R&D) use; (iii) a Use Permit (UP2025-0012) to allow the construction of phase 1, including an approximately 175,000 SF of R&D building with ancillary uses, and (iv) a Vesting Tentative Parcel Map Application relocating one (1) existing parcel line and documenting disposition of existing and created easements to facilitate the proposed project located at Chess Drive/Hatch Drive area; and WHEREAS, the applicant is proposing a parking ratio of 1.2 spaces per 1,000, and WHEREAS, pursuant to Foster City Municipal Code Section 17.62.060.D.3, where a TDM Plan is used to support a reduction in required parking, a written agreement between the landowner and the City is required to ensure implementation, monitoring and continued compliance; and
WHEREAS, the agreement is subject to the Planning Commission and City Council approval; and
WHEREAS, the Planning Commission reviewed and considered the parking agreement on May 21, 2026, and recommended the City Council to approve and authorize the mayor to execute a parking agreement by adoption of Resolution No P-10-26; and, WHEREAS, a Notice of Public Hearing was duly published on June 3, 2026, in Foster City Islander for consideration of the Environmental Assessment, General Development Plan/Rezoning, and Parking Agreement at the City Council meeting of June 15, 2026; and on said date the Public Hearing was opened, held and closed.
NOW, THEREFORE, BE IT RESOLVED that the City Council, based on the facts and analysis in the Staff Report, written and oral testimony, and other evidence on the record of proceedings, approve and authorize the Mayor to execute a parking agreement based on the findings that follow:
1. The project complies with 17.62.060.D.3 by providing a parking analysis, parking memo, and a TSM/TDM to make findings for additional 15% parking reduction; and
2. The parking analysis include clear rationale describing how and when the proposed parking will work, the parking analysis include a parking demand study that demonstrates that that parking demand for the propose use is less than minimum off-street parking otherwise required in Section 17.62.60 based on a similar use in another close by campus -2-
4 7
5 3
at the Gilead Main Campus site, and a TDM program is provided for the lifetime of the project to maintain the adequacy of the reduce parking request; and,
3. The TDM includes strategies such as on-site secure bicycle storage, shower, lockers and changing rooms; commuter shuttle drop off/pick-up at 1149 Chess Drive (300 feet from project site); the guaranteed ride home program; commuter subsidy program, and others as listed in the TDM Plan.
NOW, THEREFORE, BE IT RESOLVED that the City Council, does hereby approve the parking agreement with Gilead Sciences, Inc. as shown in Exhibit A and hereby authorizes the Mayor to execute the Agreement.
PASSED AND ADOPTED by the City Council of the City of Foster City at a Regular Meeting thereof held on June 15, 2026, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________
ART KIESEL, MAYOR
ATTEST:
______________________________
PRISCILLA SCHAUS, CITY CLERK
-3-
4 7
5 3
PARKING AGREEMENT
This PARKING AGREEMENT ("Agreement") is entered into as of this __ day of ____, 2026, by and between GILEAD SCIENCES, INC., a Delaware corporation ("Gilead") and CITY OF FOSTER CITY, a California municipal corporation ("City").
RECITALS
A. Gilead owns that certain real property located at 1155, 1157, 1159, 1161, 1163, 1165, 1167, 1169, 1175, 1181, 1185, Chess Drive in Foster City, California, more particularly described in Exhibit A attached hereto.
B. Concurrently with approval of this Agreement, the City introduced Ordinance No. ___ to amend the General Development Plan (“GDP”) real properties noted above for the Gilead Campus Expansion Project for the (" Project").
C. In accordance with the Foster City Off-Street Parking Ordinance, Chapter 17.62 of the Foster City Municipal Code, the Master Plan proposes to satisfy the City's requirements for off-street parking through the following: (1) a reduced parking ratio for laboratory buildings within a biopharmaceutical campus (Section 17.62.060 B.5.f); (2) shared parking facilities (Section 17.62.060 D.1); and (3) a transportation systems management ("transportation demand management" or "TDM") plan that reduces the number of required off-street parking stalls (Section 17.62.060 D.3). As such, the Foster City Off- Street Parking Ordinance requires a written agreement between the City and Gilead regarding Gilead's satisfaction of the City's off-street parking requirements.
D. The Project Conditions of Approval, approved concurrently herewith, require a written agreement between the City and Gilead for off-street parking pursuant to the provisions of Chapter 17.62 of the Foster City Municipal Code.
NOW THEREFORE, in consideration of the mutual covenants contained herein, the City and Gilead enter into the following Agreement in satisfaction of the provisions of Chapter 17.62 of the Foster City Municipal Code and the Project Conditions of Approval requiring such agreement.
AGREEMENT
1. USE AND DISTRIBUTION OF PARKING SPACES
1.1.Project Parking Spaces. The Project Parking Spaces as stated in the General Development Plan (Ordinance ___) require off-street parking facilities and are deemed to be "on-site parking facilities" within the meaning of the Foster City Off-Street Parking Ordinance, Chapter 17.62 of the Foster City Municipal Code.
1.2.Shared Use. Any parking stall within the Project Parking Spaces may be used to serve any of the approved uses within the Project. There shall be no substantial change in use that would result in a greater demand for parking without the prior approval of the City.
1.3.Parking Distribution. Gilead shall distribute the Project Parking Spaces in accordance with the approved General Development Plan (Ordinance___) for the Project. If any substantial changes are proposed to the Project Parking Spaces, Gilead shall submit a parking analysis and plan to the City for review and approval.
1.4.Adequacy of Parking. The City may require parking facilities in addition to the approved Project Parking Spaces upon a finding by the City Council that adequate parking to serve -4-
4 7
5 3
the Project uses has not been provided or has not been maintained in accordance with the GDP.
1.5. Transportation Demand Management (“TDM”) Plan. A fifteen percent (15%) reduction in required parking will be permitted in accordance with the implementation of the TDM Plan on file (Ordinance ___), and in accordance with this Parking Agreement with the City, and shall be maintained for the life of the project. The applicant shall provide annual compliance reports to the CDD Director.
2. REDUCED PARKING RATIO FOR RESEARCH AND DEVELOPMENT USE AND
LABORATORY BUILDINGS
2.1.Ratio. The parking ratio for the Project shall be 1.2 spaces per 1,000 square feet in a research and development or laboratory building.
2.2.Detachment; Transfer of Title. The reduced parking ratio provided in Section 2.1 above shall apply to research and development or laboratory buildings in the Project only. If a laboratory building is removed or changed from the Project, or if title to a laboratory building is transferred to an entity other than Gilead and its affiliates, successors, and assigns, then at the discretion of the City such laboratory building may be subject to the parking requirements in effect at the time of such removal or transfer of title for similar buildings in the City that are not located within the Project.
3. TRANSPORTATION SYSTEMS MANAGEMENT PLAN
3.1.Transportation Coordinator. Gilead shall establish a transportation coordinator, whose purpose is to ensure that the transportation systems management plan is successful.
Gilead shall promptly provide the City with the name and contact information for the transportation coordinator, once designated, and shall promptly notify the City of any changes to that information.
3.2.Change in Transportation Systems Management Techniques. Gilead's TDM plan dated April 14, 2026 and attached as Exhibit ___ to Ordinance No. ____ approving the Project shall not be substantially diminished, suspended, eliminated, or in any way operated at a lower level of effort without prior City approval.
3.3.Annual Report. Applicant shall provide an annual report to the City, consistent with the annual reporting timeframe of the Parking Agreement of the Integrated Campus Parking per City Council Resolution No. 2013-82, reviewing the prior year's efforts to encourage employees to use transportation systems management techniques, and an accounting of the number of employees who actually and regularly utilize the techniques when traveling to and from the Project. The annual report will also update that section of the TDM plan outlining efforts to increase employee participation in the transportation systems management program during the coming year.
4. MISCELLANEOUS
4.1.Notice. All notices and other communications under this Agreement shall be in writing and shall be personally delivered or sent by overnight service or by registered mail, return receipt requested, postage prepaid. Notice shall be deemed given as of the date of delivery in person or as of the date of deposit in any post office or post office box regularly maintained by the United States Postal Service, unless otherwise stated herein. Notices shall be delivered, as appropriate, to:
-5-
4 7
5 3
If to City: City of Foster City
610 Foster City Boulevard Foster City, CA
94404
Attn: Community Development Director
with a copy to: City Attorney
[ADDRESS NEEDED]
ATTN: ___
If to Gilead: Gilead Sciences, Inc.
333 Lakeside Drive Foster City, CA 94404
Attn: General Counsel, Real Estate
Any party may change such address by notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address.
4.2. Default; Termination. An event of default shall occur hereunder upon the failure of Gilead to fulfill or perform any obligation required to be fulfilled or performed by Gilead hereunder, unless cured within thirty (30) days after the City provides notice of the breach, or if such breach cannot reasonably be cured within thirty (30) days, if Gilead commences a cure within thirty (30) days and diligently prosecutes such cure to completion. Upon the occurrence of a default, or with other due cause, the City may, following a noticed public hearing, unilaterally modify, amend, or terminate this Agreement. Upon any such termination by the City, Gilead shall be required to commence construction of an adequate amount of off-street parking that meets the requirements of the existing parking ordinance at the time Ordinance No. ____ was approved in accordance with all other applicable laws and regulations.
4.3. Amendment. Any amendment to this Agreement which does not substantially affect its terms shall be deemed an administrative amendment and shall not, except to the extent otherwise required by law, require notice or public hearing and such amendment may be approved by the City's Community Development Director in a form acceptable to the City Attorney. Any amendment to this Agreement that would substantially affect its terms shall require City Council approval.
4.4. Successors. This Agreement shall bind, and the benefits inure to, the Parties hereto and their respective successors in interest and assigns.
4.5. No Public Gift. Nothing contained herein shall be deemed to be a gift or dedication to the general public or for any public purposes whatsoever.
4.6. No Partnership. Nothing contained in this Agreement and no action by the Parties pursuant to this Agreement will be deemed to create a partnership or a joint venture.
4.7. Governing Law; Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California. Any action arising from or brought in connection with this Agreement shall be venued in a court of competent jurisdiction in the County of San Mateo, State of California.
4.8. Mediation. The Parties agree to make a good faith attempt to resolve any dispute arising out of this Agreement through mediation prior to commencing litigation. The Parties shall mutually agree upon the mediator and shall divide the costs of mediation equally.
4.9. Severability. If any provision of this Agreement is, to any extent, declared by a court to be invalid or unenforceable, the remainder of this Agreement will not be affected thereby. -6-
4 7
5 3
4.10. Effective Date; Recordation. This Agreement shall be recorded no earlier than 30 days following the second reading of Ordinance No. ____ and shall become effective on the date Ordinance No. ___ becomes effective. In the event Ordinance No. ___ is not adopted, this Agreement shall be void and without legal force or binding effect. [SIGNATURES APPEAR ON FOLLOWING PAGE]
-7-
4 7
5 3
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized in that behalf.
CITY OF FOSTER CITY
Dated: _________________ ________________________________ ______________________, Mayor
ATTEST:
Dated: __________________ __ ______________________________ Priscilla Schaus, City Clerk
APPROVED AS TO FORM
Dated: _________________ ________________________________ Benjamin Stock, City Attorney
CONSULTANT
Dated: _________________ ________________________________ Type Name & Title of CONSULTANT Authorized to
Sign
-8-
4 7
5 3
EXHIBIT A
Description of the Expansion Project Boundary
APNs: 094-010-500, 094-010-510, 094-010-100
Real property in the City of Foster City, County of San Mateo, State of California, described as follows:
PARCEL 1:
LOT 7, AS SHOWN ON THAT CERTAIN MAP ENTITLED "TRACT NO. 820 FOSTER CITY INDUSTRIAL PARK NO. 1 IN UNINCORPORATED TERRITORY SAN MATEO COUNTY, CALIFORNIA", FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN MATEO COUNTY, STATE OF CALIFORNIA, ON JANUARY 15, 1964 IN BOOK 59 OF MAPS AT PAGE(S) 35, 36 AND 37.APN: 094-010-100
PARCEL 2:
ALL OF PARCEL A, AS SAID PARCEL IS DELINEATED AND SO DESIGNATED UPON THAT CERTAIN MAP ENTITLED, "PARCEL MAP 11-73, IN THE INCORPORATED TERRITORY OF
THE CITY OF FOSTER CITY, COUNTY OF SAN MATEO, STATE OF CALIFORNIA, BEING A RESUBDIVISION OF LOTS 8, 9, 10, 11 & 12 AS SHOWN ON TRACT MAP NO. 820, FOSTER CITY INDUSTRIAL PARK NO. 1, RECORDED IN VOLUME 59 OF MAPS PAGES 35, SAN
MATEO COUNTY RECORDS AND ALSO BEING A RESUBDIVISION OF A PORTION OF PARCEL "A", TRACT NO. 801, FOSTER CITY NEIGHBORHOOD NO. 1. UNIT NO. 1, RECORDED IN VOLUME 57 OF MAPS AT PAGES 32 TO 41, SAN MATEO COUNTY RECORDS, FOSTER CITY SAN MATEO CO. CALIFORNIA", FILED FOR RECORD DECEMBER 10, 1973, AND RECORDED IN BOOK 23
OF PARCEL MAPS AT PAGE 8, RECORDS OF SAID SAN MATEO COUNTY.
PARCEL 3:
ALL OF PARCEL "B", AS SAID PARCEL IS DELINEATED AND SO DESIGNATED UPON THAT CERTAIN MAP ENTITLED, "PARCEL MAP 11-73, IN THE INCORPORATED TERRITORY OF
THE CITY OF FOSTER CITY, COUNTY OF SAN MATEO, STATE OF CALIFORNIA, BEING A RESUBDIVISION OF LOTS 8, 9, 10, 11 & 12 AS SHOWN ON TRACT MAP NO. 820, FOSTER CITY INDUSTRIAL PARK NO. 1, RECORDED IN VOLUME 59
OF MAPS PAGE 35, SAN MATEO COUNTY RECORDS AND ALSO BEING A RESUBDIVISION OF A PORTION OF PARCEL 'A' TRACT NO. 801, FOSTER CITY NEIGHBORHOOD NO. 1, UNIT NO. 1, RECORDED IN VOLUME 57 OF MAPS AT PAGES 32 TO 41, SAN MATEO COUNTY RECORDS, FOSTER CITY, SAN MATEO COUNTY, CALIFORNIA", FILED FOR RECORD DECEMBER 10, 1973, AND RECORDED IN BOOK 23 OF PARCEL MAPS AT PAGE 8, RECORDS OF SAID SAN MATEO COUNTY.
APN(S): 094-010-500 AND 094-010-510