Menlo Park City Council
September 26, 2023

5 or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property nor shall the transferee or any person claiming under or through the transferee establish or permit any such practice or practices of discrimination or segregation with reference to selection, location, number, use or occupancy of tenants, lessee, subtenants, sublessees or vendees of the land.
(2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections

51.2, 51.3, 51.4, 51.10, 51.11 and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to paragraph (1).

2.5 Subordination. This Agreement shall be recorded in the Official Records of the County of San Mateo and shall run with the land. The City agrees that the City will not withhold consent to reasonable requests for subordination of this Agreement for the benefit of lenders providing financing for the Townhome Project, provided that the instruments effecting such subordination include reasonable protections to the City in the event of default, including without limitation, extended notice and cure rights.

3. OPERATION OF THE BMR FOR-SALE UNITS

3.1 Sale to Moderate Income Households. The eighteen (18) BMR For-Sale Units are to be sold in accordance with the BMR Ordinance and the Guidelines. Each BMR ForSale Unit shall be affordable to eligible households which are moderate income as defined in Section 50093 of the California Health and Safety Code, as described in the Guidelines, which households meet all of the requirements set forth in the Guidelines, and are of the smallest household size eligible for the BMR For-Sale Units on the BMR waiting list maintained by the City on the date that the Sales Prices are set, as more particularly described below and in the Guidelines. The eligibility requirements for buyers of the BMR For-Sale Units, the selection process for buyers for the BMR For-Sale Units, the purchase process and sale procedures, the occupancy requirements for the BMR For-Sale Units and the process for resale of the BMR ForSale Units are all set forth in the Guidelines.

All BMR For-Sale Units shall be subject to deed restrictions and conditions which include a right of first refusal in favor of the City for the duration of the Affordability Period, pursuant to the terms and conditions set forth in the Guidelines.

The BMR For-Sale Units shall be located in the Project as set forth in Exhibit C.

The Sales Price shall be calculated according to the following formula by reference to the Resolution No. XXXX

6 definitions and standards set forth below: the “Sales Price” shall be calculated by adding the cash down payment, to the Maximum Mortgage Amount, less lender and escrow fees and costs incurred by the buyer. The Sales Price shall be set before the commencement of the sale process for the BMR For-Sale Units.
(a) The “Smallest Household Size” means the household with the smallest number of persons eligible for the BMR For-Sale Units, as shown in Section 14, Table C (Occupancy Standards) of the Guidelines.
(b) The current “Maximum Eligible Income” shall be the most current State Income Limit for San Mateo County, Moderate Income category, as published by the State of California Department of Housing and Community Development, for the Smallest Household Size. (c) The “Maximum Allowable Monthly Housing Expenses” is calculated by multiplying the Maximum Eligible Income by 33 percent and dividing by 12. (d) The “Actual Monthly Housing Expenses” are calculated by adding the following costs associated with a particular BMR For-Sale Unit and dividing by 12: (i) any loan fees, escrow fees and other closing costs (amortized over 360 months) and/or private mortgage insurance associated therewith; (ii) property taxes and assessments; (iii) fire, casualty insurance and flood insurance, if required; (iv) property maintenance and repairs, deemed to be Two Hundred Dollars ($200) per month; (v) a reasonable allowance for utilities as set forth in the Guidelines, not including telephones, and (vi) homeowners association fees, if applicable, but less the amount of such homeowners association fees allocated for any costs attributable to (iii), (iv) or (v) above.
(e) The “Maximum Monthly Mortgage Payment Amount” is calculated by subtracting the Actual Monthly Housing Expenses from the Maximum Allowable Monthly Housing Expenses. (f) The “Maximum Mortgage Amount” is established by determining the amount of mortgage that a lender would loan, based upon the Maximum Monthly Mortgage Payment Amount and based upon the down payment found to be the lowest that lenders are willing to accept in a survey of lenders as described below. The City shall survey and take the average of at least three local lenders who regularly make home loans at a typical housing expense ratio to first-time buyers in the price range of the BMR home on the day that the price is set. The mortgage amount shall be for a 30-year fixed rate mortgage with standard fees, closing costs and no points, and shall be less than or equal to the Maximum Monthly Mortgage Amount.

3.2 Additional Sales Price Factors. The calculation of the Sales Price shall be based upon the factors defined below. These definitions conform to the eligibility and underwriting standards established by the major secondary mortgage market investors, such as the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. (a) Mortgage Interest Rate. The mean average of contract interest rates on the date that the Sales Price is set, for fixed rate, 30-year “Conforming” mortgages (presently $822,375 or less, as such amount may be adjusted from time to time as the maximum amount of FHA Conforming mortgages), or for jumbo mortgages if applicable; as quoted by three local retail lenders. The three local retail lenders shall be selected at random by the City from the list of Resolution No. XXXX

7 lenders certified by San Mateo County to make first mortgage loans with Mortgage Credit Certificates.
(b) Points. The mean average of points quoted by three local lenders that make mortgage loans to first time home buyers in the City of Menlo Park on the date that the Sales Price is set for fixed rate, 30 year mortgages of $822,375 or less, or for jumbo mortgages if applicable, which lenders are selected on a random basis by the City. Points are a one-time fee paid to a lender for making a loan. One point is equal to one percent of the loan amount. (c) Lender/Escrow Fees. The mean average of fees charged by three local lenders that make mortgage loans to homebuyers, which lenders are selected on a random basis by the City, plus escrow company fees, for such items as title insurance, appraisal, escrow fees, document preparation and recording fees.
(d) Loan to Value Ratio. The maximum ratio of the dollar amount of a conforming mortgage to the sales price of a home which a lender is willing to approve at a given point in time. For purposes of this Agreement, the loan to value ratio shall be calculated as the mean average of the maximum loan to value ratios as quoted by three local lenders selected on a random basis by the City from a list of lenders who actively make loans to homebuyers and who participate in the Mortgage Credit Certificate program. (e) Housing Expense Ratio. The mean average of the housing expense ratio as reported on the date that the sales price is set, for fixed rate, 30-year mortgages of $822,375 or less, or for jumbo mortgages if applicable, by three local lenders that make mortgage loans to homebuyers in the City of Menlo Park, which lenders are selected on a random basis by the City.

Housing expense is defined as the sum of the annual mortgage payment (including principal and interest), and annual payments for taxes, homeowners association dues, insurance, property maintenance and repairs, a reasonable allowance for utilities according to the San Mateo County Housing Authority Utility Financial Allowance Chart which is periodically updated and amended, and any secondary financing (but excluding any portion of the aforementioned expenses covered by homeowners association dues). To determine the ratio, this sum is divided by gross annual income.
(f) Homeowners Insurance. Calculated as the mean average of the annual cost of insurance quoted by two or three local brokers, based on their experience, for a housing unit of the price, room configuration, location, construction material and structure type of the subject BMR For-Sale Unit. Flood insurance costs, if required, shall be calculated by this same method. (g) Private Mortgage Insurance. The mean average of the annual cost of private mortgage insurance quoted by two or three local lenders, based on their experience, for a housing unit of the price, location, and structure type of the subject BMR For-Sale Unit. (h)Taxes. The tax rate as reported by the San Mateo County Assessor’s Office. (i) Homeowner’s Dues. Reported by the Owner and as set forth in the Public Report issued by the California Department of Real Estate for the Project. (j) Down Payment. Cash portion paid by a buyer from his own funds, as opposed to that Resolution No. XXXX

8 portion of the purchase price which is financed. For the purpose of calculating the Sales Price, the down payment will be defined as the mean average of the smallest down payment required by the two or three local lenders surveyed.

3.3 Presale. If there is a standard pre-sale requirement by the BMR applicant's lender for a certain percentage of units in the Project to be sold before the BMR applicant's lender will close escrow on the loan, then the time for the City's purchase or the buyer's purchase will be extended until that requisite number of units has closed.

3.4 Term. Any and all obligations or responsibilities of Owner under this Agreement with regard to a BMR For-Sale Unit shall terminate upon the recording of the grant deed conveying the BMR For-Sale Unit to a qualified third party purchaser in accordance with the terms and provisions of this Agreement and the recording of the deed restrictions in compliance with the Guidelines against such BMR For-Sale Unit, a form of which is attached to this Agreement.

3.5 Third Party Purchasers. The execution and delivery of this Agreement shall not be deemed to be for the benefit of the third party purchasers of any BMR For-Sale Unit or any other third party and any and all obligations and responsibilities of Owner under this Agreement are to the City for whose benefit this Agreement has been entered into. No third party purchaser of a BMR For-Sale Unit or market rate unit, homeowners’ association or any other third party shall obtain any rights or standing to complain that the BMR For-Sale Unit was not constructed, designed, sold or conveyed in accordance with this Agreement, or the BMR Ordinance and the Guidelines as a result of this Agreement. Furthermore, the acceptance of this Agreement by the City, the acceptance of the interior specifications for the BMR For-Sale Units and the conveyance of the BMR For-Sale Units to qualified third parties shall conclusively indicate that Owner has complied with this Agreement and the BMR Ordinance and the Guidelines.

4. DEFAULT AND REMEDIES

4.1 Events of Default. The following shall constitute an “Event of Default” by Owner under this Agreement: there shall be a material breach of any condition, covenant, warranty, promise or representation contained in this Agreement and such breach shall continue for a period of thirty (30) days after written notice thereof to the Owner without the Owner curing such breach, or if such breach cannot reasonably be cured within such 30 day period, commencing the cure of such breach within such 30 day period and thereafter diligently proceeding to cure such breach; provided, however, that if a different period or notice requirement is specified for any particular breach under any other paragraph of Section 5 of this Agreement, the specific provision shall control.

4.2 Remedies. The occurrence of any Event of Default under Section 5.1 shall give the City the right to proceed with an action in equity to require the Owner to specifically perform its obligations and covenants under this Agreement or to enjoin acts or things which may be unlawful or in violation of the provisions of this Agreement, and the right to terminate this Agreement.

4.3 Obligations Personal to Owner. The liability of Owner under this Agreement to any person or entity is limited to Owner’s interest in the Project, and the City and any other such Resolution No. XXXX

9 persons and entities shall look exclusively thereto for the satisfaction of obligations arising out of this Agreement or any other agreement securing the obligations of Owner under this Agreement.

From and after the date of this Agreement, no deficiency or other personal judgment, nor any order or decree of specific performance (other than pertaining to this Agreement, any agreement pertaining to any Project or any other agreement securing Owner’s obligations under this Agreement), shall be rendered against Owner, the assets of Owner (other than Owner’s interest in the Project), its partners, members, successors, transferees or assigns and each of their respective officers, directors, employees, partners, agents, heirs and personal representatives, as the case may be, in any action or proceeding arising out of this Agreement or any agreement securing the obligations of Owner under this Agreement, or any judgment, order or decree rendered pursuant to any such action or proceeding. No subsequent Owner of the Project shall be liable or obligated for the breach or default of any obligations of Owner under this Agreement on the part of any prior Owner. Such obligations are personal to the person who was the Owner at the time the default or breach was alleged to have occurred and such person shall remain liable for any and all damages occasioned thereby even after such person ceases to be the Owner. Each Owner shall comply with and be fully liable for all obligations the Owner hereunder during its period of ownership of the Project.

4.4 Force Majeure. Subject to the party’s compliance with the notice requirements as set forth below, performance by either party hereunder shall not be deemed to be in default, and all performance and other dates specified in this Agreement shall be extended, where delays or defaults are due to causes beyond the control and without the fault of the party claiming an extension of time to perform, which may include, without limitation, the following: war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, assaults, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight embargoes, lack of transportation, governmental restrictions or priority, litigation, unusually severe weather, inability to secure necessary labor, materials or tools, acts or omissions of the other party, or acts or failures to act of any public or governmental entity (except that the City’s acts or failure to act shall not excuse performance of the City hereunder). An extension of the time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within 30 days of the commencement of the cause.

4.5 Attorneys’ Fees. In addition to any other remedies provided hereunder or available pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any right or remedy hereunder, the prevailing party shall be entitled to recover from the other party its costs of suit and reasonable attorneys' fees. This Section shall be interpreted in accordance with California Civil Code Section 1717 and judicial decisions interpreting that statute.

4.6 Remedies Cumulative. No right, power, or remedy given by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given by the terms of any such instrument, or by any statute or otherwise.

4.7 Waiver of Terms and Conditions. The City may, in its sole discretion, waive in writing any of the terms and conditions of this Agreement. Waivers of any covenant, term, or Resolution No. XXXX

10 condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term, or condition.

4.8 Non-Liability of City Officials and Employees. No member, official, employee or agent of the City shall be personally liable to Owner or any occupant of any BMR Unit, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Owner or its successors, or on any obligations under the terms of this Agreement.

4.9 Cure Rights. Notwithstanding anything to the contrary contained herein, City hereby agrees that any cure of any default made or tendered by Owner’s mortgage lender, shall be deemed to be a cure by Owner and shall be accepted or rejected on the same basis as if made or tendered by Owner.

5. GENERAL PROVISIONS

5.1 Below Market Rate Guidelines (“Guidelines”). This Agreement incorporates by reference the Guidelines as of the date the Owner submitted a complete Preliminary Application pursuant to Government Code section 65941.1 and, at the election of the Owner, any successor sections as the Guidelines may be amended from time to time. In the event of any conflict or ambiguity between this Agreement, the requirements of state and federal fair housing laws and the Guidelines, the terms and conditions of this Agreement and the requirements of state and federal fair housing laws shall control.

5.2 Time. Time is of the essence in this Agreement.

5.3 Notices. Unless otherwise indicated in this Agreement, any notice requirement set forth herein shall be deemed to be satisfied three days after mailing of the notice first-class United States certified mail, postage prepaid, or by personal delivery, addressed to the appropriate party as follows:

Owner: The Sobrato Organization
599 Castro Street, Suite 400
Mountain View, CA 94041
Attention: Peter Tsai
Email: [email protected]
City : City of Menlo Park
701 Laurel Street
Menlo Park, California 94025-3483
Attention: City Manager
Such addresses may be changed by notice to the other party given in the same manner as provided above.

5.4 Successors and Assigns. This Agreement constitutes a covenant and legal restriction on the Property and shall run with the land, provided the Project remains on the Resolution No. XXXX

11 Property, and all of the terms, covenants and conditions of this Agreement shall be binding upon Owner and the permitted successors and assigns of Owner.

5.5 Intended Beneficiaries. The City is the intended beneficiary of this Agreement and shall have the sole and exclusive power to enforce this Agreement. It is intended that the City may enforce this Agreement in order to, satisfy its obligations to improve, increase and preserve affordable housing within the City, as required by the Guidelines, and to provide that a certain percentage of new housing is made available at affordable housing cost to persons and families of very low, low and moderate incomes as required by the Guidelines. No other person or persons, other than the City and Owner and their assigns and successors, shall have any right of action hereon.

5.6 Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

5.7 Governing Law. This Agreement and other instruments given pursuant hereto shall be construed in accordance with and be governed by the laws of the State of California. Any references herein to particular statutes or regulations shall be deemed to refer to successor statutes or regulations, or amendments thereto. The venue for any action shall be the County of San Mateo.

5.8 Amendment. This Agreement may not be changed orally, but only by agreement in writing signed by Owner and the City.

5.9 Approvals. Where an approval or submission is required under this Agreement, such approval or submission shall be valid for purposes of this Agreement only if made in writing.

Where this Agreement requires an approval or consent of the City, such approval shall not be unreasonably withheld may be given on behalf of the City by the City Manager or his or her designee. The City Manager or his or her designee is hereby authorized to take such actions as may be necessary or appropriate to implement this Agreement, including without limitation the execution of such documents or agreements as may be contemplated by this Agreement, and amendments which do not substantially change the uses or restrictions hereunder, or substantially add to the costs of the City hereunder.

5.10 Indemnification. To the greatest extent permitted by law, Owner shall indemnify, defend (with counsel reasonably approved by City) and hold the City, its heirs, successors and assigns (the “Indemnitees”) harmless from and against any and all demands. losses, claims, costs and expenses, and any other liability whatsoever, including without limitation, reasonable accountants’ and attorneys’ fees, charges and expense (collectively, “Claims”) arising directly or indirectly, in whole or in part, as a result of or in connection with Owner’s construction, management, or operation of the Property and the Project or any failure to perform any obligation as and when required by this Agreement. Owner’s indemnification obligations under this Section

6.10 shall not extend to Claims to the extent resulting from the gross negligence or willful misconduct of Indemnitees. The provisions of this Section 6.10 shall survive the expiration or earlier termination of this Agreement, but only as to claims arising from events occurring during the Affordability Period.

Resolution No. XXXX

12 5.11 Insurance Coverage. Prior to the first sale of each BMR For-Sale Unit, Owner shall comply with the insurance requirements set forth in Exhibit D, attached hereto and incorporated herein by this reference, and shall, at Owner’s expense, maintain in full force and effect insurance coverage as specified in Exhibit D.

5.12 Transfer and Encumbrance.

5.12.1 Restrictions on Transfer and Encumbrance. During the term of this Agreement, except as permitted pursuant to this Agreement, Owner shall not directly or indirectly, voluntarily, involuntarily or by operation of law make or attempt any total or partial sale, transfer, conveyance, assignment or lease (other than a sale of a BMR For-Sale Unit as described in Section 3 hereof) (collectively, “Transfer”) of the whole or any part of any BMR For-Sale Unit, without the prior written consent of the City, which approval shall not be unreasonably withheld. In addition, prior to the expiration of the term of this Agreement, except as expressly permitted by this Agreement, Owner shall not undergo any significant change of ownership without the prior written approval of City. For purposes of this Agreement, a “significant change of ownership” shall mean a transfer of the beneficial interest of more than twenty-five percent (25%) in aggregate of the present ownership and /or control of Owner, taking all transfers into account on a cumulative basis; provided however, neither the admission of an investor limited partner, nor the transfer by the investor limited partner to subsequent limited partners shall be restricted by this provision.

5.12.2 Permitted Transfers. The prohibitions on Transfer set forth herein shall not be deemed to prevent: (i) the granting of easements or permits to facilitate development of the Property; or (ii) assignments creating security interests for the purpose of financing the acquisition, construction, or permanent financing of the Project or the Property, or Transfers directly resulting from the foreclosure of, or granting of a deed in lieu of foreclosure of, such a security interest; or (iii) transfers between entities owned or controlled by the Sobrato Organization.

5.12.3 Requirements for Proposed Transfers. The City may, in the exercise of its sole discretion, consent to a proposed Transfer of this Agreement if all of the following requirements are met (provided however, the requirements of this Section 6.12.3 shall not apply to Transfers described in clauses (i) or (ii) of Section 6.12.2. (i) The proposed transferee demonstrates to the City’s satisfaction that it has the qualifications, experience and financial resources necessary and adequate as may be reasonably determined by the City to competently complete and manage the Project and to otherwise fulfill the obligations undertaken by the Owner under this Agreement. (ii) The Owner and the proposed transferee shall submit for City review and approval all instruments and other legal documents proposed to effect any Transfer of all or any part of or interest in this Agreement together with such documentation of the proposed transferee’s qualifications and development capacity as the City may reasonably request. (iii) The proposed transferee shall expressly assume all of the rights and obligations of the Owner under this Agreement arising after the effective date of the Transfer and Resolution No. XXXX

13 all obligations of Owner arising prior to the effective date of the Transfer (unless Owner expressly remains responsible for such obligations) and shall agree to be subject to and assume all of Owner’s obligations pursuant to conditions, and restrictions set forth in this Agreement. (iv) The Transfer shall be effectuated pursuant to a written instrument satisfactory to the City in form recordable in the Official Records.

Consent to any proposed Transfer may be given by the deputy Director unless the Deputy Director, in his or her discretion, refers the matter of approval to the City Council. If the City has not rejected a proposed Transfer or requested additional information regarding a proposed Transfer in writing within forty-five (45) days following City’s receipt of written request by Owner, the proposed Transfer shall be deemed approved.

5.13 Effect of Transfer without City Consent. In the absence of specific written agreement by the City, no Transfer of any BMR For-Sale Unit shall be deemed to relieve the Owner or any other party from any obligation under this Agreement. This Section 5.12 shall not apply to Transfers described in clauses (i) and (ii) of Section 5.12.2.

5.14 Recovery of City Costs. Owner shall reimburse City for all reasonable City costs, including but not limited to reasonable attorneys’ fees, incurred in reviewing instruments and other legal documents proposed to effect a Transfer under this Agreement and in reviewing the qualifications and financial resources of a proposed successor, assignee, or transferee within ten (10) days following City’s delivery to Owner of an invoice detailing such costs.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year set forth above.

SIGNATURES ON FOLLOWING PAGE(S).

Resolution No. XXXX

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OWNER:
[INSERT]
By:

Its:

CITY:

CITY OF MENLO PARK, a California municipal
corporation
By:

City Manager
ATTEST:

By:

City Clerk
List of Exhibits:

Exhibit A: Property Description
Exhibit B: Allocation of the BMR Units
Exhibit C: BMR Unit Locations
Exhibit D: Insurance Requirements
Resolution No. XXXX

SR #4841-9856-9706 v3
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Exhibit A
Property Description
Resolution No. XXXX

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Exhibit B
Allocation of BMR Units in the Project
BMR For-Sale Units Moderate
2 bedrooms 3
3 bedrooms 6
4 bedrooms 9
Total - BMR ForSale Units18
Resolution No. XXXX

SR #4841-9856-9706 v3
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Exhibit C
BMR Unit Locations
Resolution No. XXXX

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Exhibit D
Insurance Requirements
Prior to initiating work on the Project and continuing the initial sale of each For-Sale Unit, Owner shall obtain and maintain the following policies of insurance and shall comply with all provisions set forth in this Exhibit.

1. General Requirements. Owner shall procure and maintain the following insurance providing coverage against claims for injuries to persons or damages to property that may arise from or in connection with the Project, construction, management, or operation of the Property by the Owner or the Owner’s agents, representatives, employees and contractors, or subcontractors, including the following:
(a) Commercial General Liability: The Owner and all contractors working on behalf of Owner on the Property shall maintain a commercial general liability policy in an occurrence policy for protection against all claims arising from injury to person or persons not in the employ of the Owner and against all claims resulting from damage to any property due to any act or omission of the Owner, its agents, or employees in the conduct or operation of the work or the execution of this Agreement. Such insurance shall include products and completed operations liability, blanket contractual liability, personal injury liability, and broad form property damage coverage. Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage.
(b) Commercial Automobile Liability: The Owner and all contractors working on behalf of Owner on the Property shall maintain insurance for protection against all claims arising from the use of vehicles, owned, hired, non-owned, or any other vehicle in connection with the Project, construction, operation or management of the Property. Such insurance shall cover the use of automobiles and trucks on and off the site of the Property. Coverage shall be at least as broad as Insurance Services Office covering Commercial Automobile Liability, any auto, owned, non-owned and hired auto.
(c) Workers' Compensation Insurance: The Owner (and the general partners thereof) shall furnish or cause to be furnished to City evidence satisfactory to City that Owner (and the general partners thereof), and any contractor with whom Owner has contracted for the performance of work on the Property or otherwise pursuant to this Agreement, shall maintain Workers' Compensation Insurance as required by the State of California and Employer’s Liability Insurance. (d) Builder’s Risk: Upon commencement of any construction work on the Property, Owner and all contractors working on behalf of Owner shall maintain a policy of builder's all-risk insurance in an amount not less than the full insurable cost of the Project on a replacement cost basis naming City as loss payee as its interests may appear. (e) Professional Liability/Errors and Omissions: Owner shall require any architects, engineers, and general contractors working on the Property to maintain Professional Liability/Errors and Omissions insurance with limits not less than Two Million Dollars ($2,000,000) each claim. Certificates evidencing this coverage must reference both the Owner and the Indemnitees. If the professional liability/errors and omissions insurance is written on a Resolution No. XXXX

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claims made form: (i) the retroactive date must be shown and must be before the Effective Date, (ii) insurance must be maintained and evidence of insurance must be provided for at least three (3) years after completion of Project construction, and (iii) if coverage is cancelled or non-renewed and not replaced with another claims made policy form with a retroactive date prior to the Effective Date, Owner must purchase, or require the provision of, extended period coverage for a minimum of three (3) years after completion of construction.
(f) Property: Owner shall maintain property insurance covering all risks of loss, including earthquake and flood (if required) for 100% of the replacement value of the Project with deductible, if any, in an amount acceptable to City, and as commercially available.

2. Minimum Limits; Adjustments. Insurance shall be maintained with limits no less than the following:
(a) Commercial General Liability and Property Damage: $2,000,000 per occurrence and $5,000,000 annual aggregate for bodily injury, personal injury and property damage; provided however, with City’s advance written approval, subcontractors may maintain liability coverage with limits not less than $1,000,000 per occurrence, $2,000,000 annual aggregate. (b) Products and Completed Operations: $3,000,000 per occurrence/aggregate.

Subcontractors may maintain Products and Completed Operations with limits not less than $1,000,000 per occurrence and $1,000,000 aggregate.
(c) Commercial Automobile Liability: $2,000,000 combined single limit. (d) Employer’s Liability:

Bodily Injury by Accident - $1,000,000 each accident.

Bodily Injury by Disease - $1,000,000 policy limit.

Bodily Injury by Disease - $1,000,000 each employee.
(e) Professional Liability/Errors and Omissions: $2,000,000 per occurrence or claim.

If the policy provides coverage on a claims-made basis, the retroactive date must be shown and must be before the date of the Agreement or the beginning of the contract work. Subcontractors are required to carry coverage if their scope of work includes design services to the Project.

Coverage limits, and if necessary, the terms and conditions of insurance, shall be reasonably adjusted from time to time (not less than every five (5) years after the Effective Date nor more than once in every three (3) year period) to address changes in circumstance, including, but not limited to, changes in inflation and the litigation climate in California. City shall give written notice to Owner of any such adjustments, and Owner shall provide City with amended or new insurance certificates or endorsements evidencing compliance with such adjustments within thirty (30) days following receipt of such notice.

3. Deductibles and Self-Insured Retention. Any deductibles or self-insured retention must be Resolution No. XXXX

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declared to, and approved by, the City. Payment of all deductibles and self-insured retentions will be the responsibility of Owner. If the City determines that such deductibles or retentions are unreasonably high, either the insurer shall reduce or eliminate such deductibles or self-insurance retentions as respects the Indemnitees or Owner shall procure a bond guaranteeing payment of losses and related investigations, claims administration and defense.

4. Additional Requirements. The required general liability and automobile policies shall contain, or be endorsed to contain, the following provisions:
(a) The Indemnitees are to be covered as Additional Insureds as respects: liability arising out of activities performed by or on behalf of the Owner; products and completed operations of the Owner; premises owned, occupied or used by the Owner; or automobiles owned, leased, hired or borrowed by the Owner. The coverage shall contain no special limitations on the scope of protection afforded to the Indemnitees. Additional insured endorsements for the general liability coverage shall use Insurance Services Office (ISO) Form No. CG 20 09 11 85 or CG 20 10 11 85, or equivalent, including (if used together) CG 2010 10 01 and CG 2037 10 01; but shall not use the following forms: CG 20 10 10 93 or 03 94.
(b) All insurance shall be primary insurance as respects the Indemnitees. Any insurance or self-insurance maintained by the Indemnitees shall be excess of the Owner’s/contractor’s insurance and shall not contribute with it. (c) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the Indemnitees. (d) The Owner’s insurance shall apply separately to each insured against whom claim is made or suit is brought except, with respect to the limits of the insurer’s liability. (e) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City.
(f) If any insurance policy or coverage required hereunder is canceled or reduced, Owner shall, within five (5) days after receipt of notice of such cancellation or reduction in coverage, but in no event later than the effective date of cancellation or reduction, file with City a certificate showing that the required insurance has been reinstated or provided through another insurance company or companies. Upon failure to so file such certificate, City may, without further notice and at its option, procure such insurance coverage at Owner’s expense, and Owner shall promptly reimburse City for such expense upon receipt of billing from City. (g) Owner agrees to waive subrogation rights for commercial general liability, automobile liability and worker’s compensation against Indemnitees regardless of the applicability of any insurance proceeds, and to require all contractors, subcontractors or others involved in any way with any construction on the Property to do likewise. Each insurance policy shall contain a waiver of subrogation for the benefit of City. If any required insurance is provided under a form of coverage that includes an annual aggregate limit or provides that claims investigation or legal Resolution No. XXXX

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defense costs are included in such annual aggregate limit, such annual aggregate limit shall be three times the applicable occurrence limits specified above. (h) It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirement and/or limits shall be available to the additional insured. Furthermore, the requirement for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement, or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured; whichever is greater. For all liability insurance required by this Agreement, Owner (and Owner’s contractors, as applicable) shall obtain endorsements that name the Indemnitees as additional insured in the full amount of all applicable policies, notwithstanding any lesser minimum limits specified in this Agreement. This Agreement requires Owner (and Owner’s contractors, as applicable) to obtain and provide for the benefit of the Indemnitees, additional insured coverage in the same amount of insurance carried by Owner (or Owner’s contractors, as applicable), but in no event less than the minimum amounts specified in this Agreement. In the event that Owner (or Owner’s contractors as applicable) obtains insurance policies that provide liability coverage in excess of the amounts specified in this Agreement, the actual limits provided by such policies shall be deemed to be the amounts required under this Agreement. Without limiting the foregoing, the limits of liability coverage specified in this Agreement are not intended, nor shall they operate, to limit City’s ability to recover amounts in excess of the minimum amounts specified in this Agreement. (i) The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

5. Acceptability of Insurers. Companies writing the insurance required hereunder shall be licensed to do business in the State of California. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII.

6. Verification of Coverage. Prior to the Effective Date of this Agreement, Owner shall furnish City with certificates of insurance in form acceptable to City evidencing the insurance coverage required under paragraphs (a), (b), (c), and (e) of Section 1 above, duly executed endorsements evidencing the Indemnitees’ status as additional insured, and all other endorsements and coverage required hereunder pertaining to such coverage. Prior to commencement of any construction work on the Property, Owner shall furnish City with certificates of insurance in form acceptable to City evidencing the insurance coverage required under paragraphs (d) and (g) of Section 1 above. Prior to City’s issuance of a final certificate of occupancy or equivalent for the Project, Owner shall furnish City with certificates of insurance in form acceptable to City evidencing the insurance coverage required under paragraph (f) of Section 1 above. Owner shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf.

7. Insurance Certificates and Endorsements. Owner shall submit to the City all of the Resolution No. XXXX

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necessary insurance documents, including the applicable amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of required Owner policies listing all required policy endorsements to the City. Insurance Certificates and Endorsements are to be received and approved by the City within the time periods specified in Section 6 above. Should Owner cease to have insurance as required at any time, all work by Owner pursuant to this Agreement shall cease until insurance acceptable to the City is provided. Upon City’s request, Owner shall, within thirty (30) days of the request, provide or arrange for the insurer to provide to City, complete certified copies of all insurance policies required under this Agreement. City’s failure to make such request shall not constitute a waiver of the right to require delivery of the policies in the future.

Resolution No. XXXX

RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK APPROVING VESTING TENTATIVE MAP FOR THE PROPOSED 123
INDEPENDENCE DRIVE PROJECT CONSISTING OF A 316 UNIT MULTIFAMILY RESIDENTIAL APARTMENT BUILDING WITH AN APPROXIMATELY 2,000 SQUARE FEET COMMERCIAL SPACE AND 116 TOWNHOME
CONDOMINIUM UNITS AT 119 INDEPENDENCE DRIVE, 123-125
INDEPENDENCE DRIVE, 127 INDEPENDENCE DRIVE, 1205 CHRYSLER DRIVE, AND 130 CONSTITUTION DRIVE (APNS: 055-236-140, 055-236-180, 055-236-240, 055-236-300, and 055-236-280), AND ASSOCIATED OPEN

SPACE AND INFRASTRUCTURE
WHEREAS, the City of Menlo Park (“City”) received an application requesting environmental review, use permit, architectural control, below market rate (BMR) housing agreement, major subdivision, and heritage tree removal permits from The Sobrato Organization (“Applicant”), to redevelop the properties located at 119 Independence Drive, 123-125 Independence Drive, 127 Independence Drive, 1205 Chrysler Drive, and 130 Constitution Drive (APNs 055-236-140, 055- 236-180, 055-236-240, 055-236-300, and 055-236-280) (“Property”), with a bonus level development project consisting of an up to 316 unit multifamily rental apartment building with approximately 2,000 square feet of commercial space and 116 for-sale townhome condominium units, which development is more particularly described in the Environmental Impact Report to the Project which was prepared pursuant to the California Environmental Quality Act (hereinafter the “Project”). The Project is depicted in and subject to the development plans which are attached hereto as Exhibit A (“Project Plans including colors and materials board”) and incorporated herein by this reference; and
WHEREAS, the proposed Project is located in the R-MU-B (Residential Mixed Use-Bonus) zoning district. The R-MU-B zoning district allows a mixture of land uses with the purposes of providing high density housing to complement nearby employment, encouraging mixed use development with a quality living environment and neighborhood-serving retail and services on the ground floor that are oriented to the public, promoting a live/work/play environment with pedestrian activity, and blending with and complementing existing neighborhoods through site regulations and design standards that minimize impacts to adjacent uses; and WHEREAS, a phased vesting tentative map would merge the existing five legal parcels within the approximately 8.5-acre project site and re-subdivide the project site to create a 316 multifamily apartment unit building including the 2,000 square feet commercial space within one of the legal parcels, 116 townhome condominium units to be sold individually on three legal parcels, and create one legal parcel to accommodate the publicly accessible paseo, emergency vehicle access, and publicly accessible park; and
WHEREAS, the project proposes to execute the vesting tentative map in two phases. First phase would merge all the parcels and create four lots consisting of one lot (lot A) to receive the apartment building fronting Constitution Drive, the publicly accessible paseo/publicly accessible park lot (lot 1) and third and fourth lots (lot B and lot C) would merge the parcels to create the lot to receive the townhomes. The second phase would further subdivide lots B and C to create a third lot, Lot D, for the 116 townhome condominiums; and Page I-1.245 ATTACHMENT B
WHEREAS, notwithstanding the anticipated phasing plan and, included hereto as Exhibit B, and incorporated herein by this reference, the applicant may elect to develop the project in a single phase or modify the project phasing as permitted by the Subdivision Map Act; and WHEREAS, staff has determined that the proposed vesting tentative map, included hereto as Exhibit C, and incorporated herein by this reference, includes the required data and statements listed in the Subdivision Ordinance, and all information is complete and accurate; and WHEREAS, after notice having been lawfully given, a duly noticed public hearing was held before the City Planning Commission on August 28, 2023 at which all persons interested had the opportunity to appear and comment; and
WHEREAS, after closing the public hearing, the Planning Commission considered all public and written comments, pertinent information, documents and plans and all other evidence in the public record on the Project; and
WHEREAS, on August 28, 2023, the Planning Commission fully reviewed, considered, evaluated the whole of the record including all public and written comments, pertinent information, document and plans, and by Resolution No. 2023-40 certifying the Final EIR, adopting findings of fact in accordance with the CEQA, and adopting a Mitigation Monitoring and Reporting Program, prior to adopting Resolution No. 2023-41 approving the requested use permit and architectural control including all the requested concessions and waivers, and adopted Resolution No. 2023-42 recommending of approval to City Council for the vesting tentative map for the 123 Independence Drive Project; and WHEREAS, all required public notices and public hearings were duly given and help according to law; and
WHEREAS, after notice having been lawfully given, a duly noticed public hearing was held before the City Council on September 26, 2023 at which all persons interested had the opportunity to appear and comment; and
WHEREAS, after closing the public hearing, the City Council considered all public and written comments, pertinent information, documents and plans and all other evidence in the public record on the Project; and
WHEREAS, on September 26, 2023, the City Council fully review, considered, evaluated the whole of the record including all public and written comments, pertinent information, documents, and approved the Vesting Tentative Map, attached herein as Exhibit C, subject to conditions included hereto as Exhibit D, and incorporated herein by this reference for the 123 Independence Drive Project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menlo Park finds that the above recitals together with the staff report and the application materials, including without limitation, the previously certified EIR, and all other documents, reports, studies, maps, oral and written testimony, and materials in the City’s file for the applications and the Project, and all adopted and applicable City planning documents related to the Project and the Project Site and all associated evidentiary basis for the approval set forth in this resolution.

BE IT FURTHER RESOLVED that the City Council make the following findings and recommendations:

Resolution No. XXXX

1. CEQA Finding. The City, as lead agency, prepared an Environmental Impact Report (“EIR”) (SCH: 2021010076) pursuant to the California Environmental Quality Act (“CEQA”) that examined the environmental impacts of the redevelopment of the Project site consisting of an up to 316 unit multifamily rental apartment building with approximately 2,000 square feet of commercial space and 116 for-sale townhome condominium units (hereinafter the “Project”). On August 28, 2023, by Resolution No [include number], the Planning Commission certified the EIR, made certain findings, and adopted a Mitigation Monitoring and Reporting Program, which Resolution together with the EIR are incorporated herein by reference. The City Council finds that the vesting tentative map was analyzed as part of the EIR is within the scope of the certified EIR.

2. Vesting Tentative Map. The City Council find that the approval of the Vesting Tentative Map is consistent with the requirements of the Subdivision Map Act and City of Menlo Park Municipal Code Section 15.22.020 for the following reasons:
a. The proposed Vesting Tentative Map for the Project Site is technically correct and in compliance with all applicable State regulations, City General Plan, Zoning and Subdivision Ordinances, and the State Subdivision Map Act. b. The proposed Vesting Tentative Map for the project Site, including the contemplated design and improvements, is consistent with the applicable General Plan goals and policies, in particular that goals for the Bayfront Area set forth in the General Plan. The project is consistent with the land use designations described in the General Plan and would be consistent with the City General Plan policies as well as City Zoning Ordinance requirements for bonus level development projects at the proposed density and for the types of uses.
c. The project Site is physically suitable for the proposed development, including the proposed density of development, and the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially injure fish or wildlife or their habitat. The project is consistent with the density and uses for the site set forth in the General Plan. The project Site is in an urbanized area of the City currently occupied by office/warehouse development, landscaped, and hardscaped areas that include various urban uses and does not include any aquatic habitat. The project would not cause substantial environmental damage to the already disturbed Project Site and would not substantially injure the limited wildlife that access the site or their habitat. d. The design of the subdivision or types of improvements is not likely to cause serious public health or safety problems. The project would comply with the General Plan’s goals and policies, City Zoning and Subdivision Ordinances, and other applicable regulations designed to prevent serious health and safety problems. e. The design of the subdivision or the type of improvements does not conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision because alternate easements for access or use will be provided that are substantially equivalent to ones previously acquired by the public. f. The project is subject to flood and inundation hazards and is not located within a slide area. The Project Site is located within the 100-year flood hazard zone. However, the contemplated Project design and improvements will be elevated so as to mitigate flood hazards, and the Project would comply with the applicable requirements designed in mitigate flood hazards as well as address future sea level rise.

Based on the above findings, the City Council approves the vesting tentative map in form substantially consistent with Exhibit C, subject to conditions of approval attached herein as Exhibit D.

Resolution No. XXXX

SEVERABILITY
If any term, provision, or portion of these findings or the application of these findings to a particular situation is held by a court to be invalid, void or unenforceable, the remaining provisions of these findings, or their application to other actions related to the Project, shall continue in full force and effect unless amended or modified by the City.

I, Judi A. Herren, City Clerk of Menlo Park, do hereby certify that the above and foregoing City Council Resolution was duly and regularly passed and adopted at a meeting by said City Council on the twenty-sixth day of September, 2023, by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this __ day of September, 2023.

Judi A. Herren, City Clerk
Exhibits
A. Project Plans including materials and color board and vesting tentative map B. Vesting Tentative Map phasing narrative
C. Vesting Tentative Map
D. Vesting Tentative Map conditions of approval
Resolution No. XXXX

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123 Independence Drive Project – Attachment B, Exhibit G – Conditions of Approval
PAGE: 1 of 3
LOCATION: 119
Independence Drive,
123-125 Independence
Drive, 127 Independence
Drive, 1205 Chrysler
Drive, and 130
Constitution Drive
PROJECT NUMBER:

PLN2020-00020
APPLICANT: Peter Tsai,
The Sobrato
Organization
OWNER: SI 60, LLC
PROJECT MAP CONDITIONS:

1. The tentative map shall be subject to the following standard conditions:
a. Project Proponent shall adhere to the Subdivision Map Act and Chapter 15 of the City's Municipal Code in effect on the date the Project Proponent submitted its SB 330 preliminary application containing all the information required by Government Code section 65941.1(a) (here, January 29, 2020) (“SB 330 Date”).
b. Within two years from the date of approval of the tentative map, the Project Proponent shall submit a Final Map or Phased Final Map for City approval.
c. Prior to Final Map or Phased Final Map approval, Project Proponent shall submit plans to remove and replace any damaged and significantly worn sections of frontage improvements within the area of the Final Map or Phased Final Map. The plans shall be submitted for the review and approval of the Engineering Division.
d. The project is required to construct frontage improvements as shown on tentative map Improvement Plans to include but not limited to:

1. 5’ Green Infrastructure

2. 3” of grind and AC overlay (curb to curb) along entire frontages.

3. Lateral connections to overhead electric, fiber optic, and communication lines shall be placed in a joint trench.

4. Existing sidewalk shall be removed and replaced along the entire project frontages per approved project plans.

5. Any frontage improvements which are damaged as a result of construction shall be replaced.
e. The Final Map or Phased Final Map shall dedicate the Public Access Easements (PAE), Public Utility Easements (PUE), Right of Way Dedications, and any and all other necessary easements within the map area.
f. The Project has the option to create multiple final maps in accordance with the subdivision map act and the city subdivision ordinance. The city will determine the public improvements for each phase, ensuring they meet the satisfaction of the Director of the Public Works Department. The completion of the paseo, and any additional open space required to meet the minimum open space for that phase pursuant to the requirements of the City of Menlo Park Municipal Code Section

16.45.120(4), unless modified pursuant to State Density Bonus Law concessions and waivers, is required as part of the improvements associated with the first phase of the Project. Publicly accessible private open space shall be subject to an irrevocable easement agreement for public use of the publicly accessible private open space, including the publicly accessible paseo, to the satisfaction of the Public Works Director and City Attorney. The easement agreement shall be recorded at the time of the recordation of the Phased Final Map or Final Map that includes the publicly accessible private open space subject to the easement. g. Prior to Final Map or Phased Final Map approval, Project Proponent shall submit plans for: 1) construction safety fences around the periphery of the construction area, 2) dust control, 3) air pollution control, 4) erosion and sedimentation control, 5) tree protection fencing, and 6) EXHIBIT D Resolution No. XXXX

123 Independence Drive Project – Attachment B, Exhibit G – Conditions of Approval
PAGE: 2 of 3
construction vehicle parking for the map area. The plans shall be subject to review and approval by the Building, Engineering, and Planning Divisions. The fences and erosion and sedimentation control measures shall be installed according to the approved plan prior to commencing construction.
h. Prior to Final Map or first Phased Final Map approval, Project Proponent shall submit an updated Storm Water Management plan with review of 3rd party engineer’s certification. i. Prior to Final Map or first Phased Final Map approval, Project Proponent shall provide documentation indicating the amount of irrigated landscaping. If the Project proposes more than 500 square feet of irrigated landscaping, it is subject to the City's Water Efficient Landscaping Ordinance (Municipal Code Chapter 12.44).
j. Prior to Final Map or Phased Final Map approval, Project Proponent shall submit a plan for any new utility installations or upgrades for the area covered by the map for review and approval of the Planning, Engineering and Building Divisions. All utility equipment that are installed outside of a building and that cannot be placed underground shall be properly screened by landscaping. The plan shall show exact locations of all meters, back flow prevention devices, transformers, junction boxes, relay boxes, and other equipment boxes.
k. Prior to Final Map or Phased Final Map approval, Project Proponent shall submit a heritage street tree preservation plan for the map area, detailing the location of and methods for all tree protection measures.
l. Prior to Final Map or Phased Final Map approval, Project Proponent shall pay all applicable Public Works fees for the phase. Refer to City of Menlo Park Master Fee Schedule in effect on the SB 330 Date. Fee inflaters in that fee schedule apply.
m. Prior to Final Map or Phased Final Map approval, Project Proponent shall pay all applicable engineering fees for that phase in accordance with City requirements and the Master Fee Schedule in effect on the SB 330 Date. Fee inflaters in that fee schedule apply. This residential subdivision is subject to the City’s Recreation In-Lieu Fee requirements (Municipal Code 15.16.020). The recreation in-lieu fee is $78,400.00 per unit. Based on total 116 townhomes that have been proposed, the total Recreation In-Lieu Fee is $9,094,400. n. Prior to Final Map or the last Phased Final Map approval, Project Proponent shall submit draft Covenants, Conditions and Restrictions (CC&Rs) to the City for review and approval. The CC&Rs shall provide for the maintenance of all infrastructure and utilities within the Project site or constructed to serve the Project. This shall include, but not be limited to, the private open spaces, shared parking spaces, common walkways, common landscaping, and the stormwater drainage and sewer collection systems.
o. Prior to Final Map or first Phased Final Map approval, the Project Proponent shall submit engineered Off-Site Improvement Plans (including specifications & engineers cost estimates), for approval by the Engineering Division, showing the infrastructure necessary to serve the Project.

The Improvement Plans shall include, but are not limited to, all engineering calculations necessary to substantiate the design, proposed roadways, drainage improvements, utilities, traffic control devices, retaining walls, sanitary sewers, and storm drains, pump/lift stations, street lightings, common area landscaping and other project improvements. All public improvements shall be designed and constructed to the satisfaction of the Engineering Division. p. Prior to Final Map or first Phased Final Map approval, the Project Proponent shall enter into a Subdivision Improvement Agreement and provide a performance bond for the completion of the offsite improvements as shown on the approved project improvement plans. The Project Proponent shall obtain an encroachment permit, from the appropriate reviewing jurisdiction, prior to commencing any work within the right-of-way or public easements.

Resolution No. XXXX

123 Independence Drive Project – Attachment B, Exhibit G – Conditions of Approval
PAGE: 3 of 3
q. Prior to Final Map or first Phased Final Map approval, Project Proponent shall submit plans for street light design per City standards and PG&E at locations approved by the City. r. Prior to Final Map or first Phased Final Map approval, the Project Proponent shall submit a draft “Stormwater Treatment Measures Operations and Maintenance (O&M) Agreement” with the City subject to review and approval by the Engineering Division. The property owner will be responsible for the operation and maintenance of stormwater treatment measures for the Project. The agreement shall also include operation and maintenance of the stormwater treatment facility on Garwood Way including curb gutter and retaining walls. This agreement shall run with the land and shall be recorded with the San Mateo County Recorder’s Office prior to building permit final inspection.

Resolution No. XXXX

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4000
1221
3735
160

CHRYSLER DR
US HIGHWAY 101

CONSTITUTION DR

INDEPENDENCE DR
STATE HIGHWAY 84

MARSH RD

SCOTT DR

JEFFERSON DR

HAVEN AVE
US HIGHWAY 101
´ CITY OF MENLO PARK

LOCATION MAP
123 INDEPENDENCE DRIVE PROJECT DRAWN:

DRAWN: TAS CHECKED: KTP DATE: 1/25/21 SCALE: 1" = 300' SHEET: 1 105-155
200
100-150
G1 ATTACHMENT C Page I-1.395

ATTACHMENT D
Page I-1.396
Page I-1.397
PLANNING COMMISSION RESOLUTION NO. 2023-40

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MENLO PARK

CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT, ADOPTING

FINDINGS REQUIRED BY THE CALIFORNIA ENVIRONMENTAL QUALITY ACT,

AND A MITIGATION MONITORING AND REPORTING PROGRAM (MMRP) ALL

PURSUANT TO THE CALIFORNIA ENVIRONEMENTAL QUALITY ACT, FOR THE PROPOSED 123 INDEPENDENCE DRIVE PROJECT CONSISTING OF A 316 UNIT

MULTI-FAMILY RESIDENTIAL APARTMENT BUILDING WITH AN
APPROXIMATELY 2,000 SQUARE FEET COMMERCIAL SPACE AND 116 TOWNHOME CONDOMINIUM UNITS AT 119 INDEPENDENCE DRIVE, 123-125 INDEPENDENCE DRIVE, 127 INDEPENDENCE DIRVE, 1205 CHRYSLER DRIVE, AND 130 CONSTITUTION DRIVE (APNS: 055-236-140, 055-236-180, 055-236-240, 055- 236-300, and 055-236-280), AND ASSOCIATED OPEN SPACE AND INFRASTRUCTURE WHEREAS, the City of Menlo Park (“City”) received an application requesting environmental review, use permit, architectural control, below market rate (BMR) housing agreement, vesting tentative map, and heritage tree removal permits from The Sobrato Organization (“Applicant”), to redevelop the properties located at 119 Independence Drive, 123- 125 Independence Drive, 127 Independence Drive, 1205 Chrysler Drive, and 130 Constitution Drive (APNs 055-236-140, 055-236-180, 055-236-240, 055-236-300, and 055-236-280) (“Property”), with a bonus level development project consisting of an up to 316 unit multifamily rental apartment building with approximately 2,000 square feet commercial space and 116 forsale townhome condominium units, which development is more particularly described in the Environmental Impact Report to the Project which was prepared pursuant to the California Environmental Quality Act (hereinafter the “Project”). The Project is depicted in and subject to the development plans which are attached hereto as Exhibit D (“Project Plans including colors and materials board”) and incorporated herein by this reference; and WHEREAS, the proposed Project is located in the R-MU-B (Residential Mixed UseBonus) zoning district. The R-MU-B zoning district allows a mixture of land uses with the purposes of providing high density housing to complement nearby employment, encouraging mixed use development with a quality living environment and neighborhood-serving retail and services on the ground floor that are oriented to the public, promoting a live/work/play environment with pedestrian activity, and blending with and complementing existing neighborhoods through site regulations and design standards that minimize impacts to adjacent uses; and
WHEREAS, the bonus level provisions identified in the City’s Zoning Ordinance allow a development to seek an increase in floor area ratio (FAR), density (dwelling units per acre), and/or height subject to approval of a use permit and the provision of community amenities equal to a minimum of 50 percent of the fair market value of the increased development potential and the DocuSign Envelope ID: E2D8C7ED-A6E5-4C02-B2F0-C46170CD03B7 ATTACHMENT F Page I-1.398
Resolution No.: 2023-40
applicant has submitted a community amenities proposal in compliance with the required minimum value; and
WHEREAS, the proposed Project would be developed with an increase in FAR, height, and density pursuant to City’s bonus level development allowances; and WHEREAS, the proposed Project requests a use permit to allow modifications to the bird friendly design guidelines and allow some balcony railings in the project to be made out of fritted clear-glazed glass; and
WHEREAS, the proposed Project environmental impact report found that combined with low number of birds expected to be exposed to increases risk of collision, the fact that most birds would be urban generalists that already occur in the area, and less than ten percent of the glazing being fritted glass railing, the bird collision risk at the proposed Project would be less-thansignificant; and WHEREAS, pursuant to City’s General Plan goals and policies, the proposed Project is required to provide a publicly accessible paseo connecting Constitution Drive to Independence Drive; and
WHEREAS, the Project provides a minimum 20-foot wide paseo which increases in width at certain places. The paseo expands to create publicly open space of approximately 15,367 square feet in size before connecting Independence Drive; and
WHEREAS, the proposed Project complies with all applicable objective standards of the City’s Zoning Ordinance, including design standards, green and sustainable building standards, and is consistent with the City’s General Plan goals, policies, and programs; and WHEREAS, pursuant to the requirements of Sections 16.45.060 and 16.96.020 of the City of Menlo Park Municipal Code and the City’s Below Market Rate (“BMR”) Housing Program, the applicant submitted a BMR proposal that would provide 48 inclusionary rental units (15 percent of total proposed 316 multi-family apartment units), 18 inclusionary for-sale units (15 percent of total proposed 116 for-sale townhome units), and eight additional inclusionary rental units to fulfill the community amenities obligation for the proposed project; and WHEREAS, as allowed by the State Density Bonus Law and City’s Below Market Rate (BMR) Ordinance, the proposed Project requests two concessions for the development of for-sale affordable units: first from BMR Guidelines 5.1 and Section 16.96.060 of City’s Municipal Code to allow clustering of the affordable for-sale townhome units and second concession from BMR Guidelines 5.3.1 and Section 16.96.060 of City’s Municipal Code to allow a delayed construction schedule to develop the affordable units such that Habitat for Humanity Greater San Francisco (“HGSF”) would obtain building permits for the for-sale affordable townhomes within six months from issuance of first building permit for first market-rate townhome and HGSF would be required to complete the affordable townhomes within 24 months from their building permit issuance; and DocuSign Envelope ID: E2D8C7ED-A6E5-4C02-B2F0-C46170CD03B7 Page I-1.399
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WHEREAS, the applicant requests the first concession to allow the use of volunteer labor as sweat equity towards purchase of affordable units and to allow leveraging of certain financial opportunities that would otherwise be unavailable and the second concession to allow a delay in the development of affordable units to allow HGSF to rely on volunteer labor and sweat equity model and use donated goods and materials for construction of the affordable for-sale units; and WHEREAS, as allowed by the State Density Bonus Law and the City’s Below Market Rate (BMR) Ordinance, the proposed Project requests three waivers: first from City’s Municipal Code Section 16.97.100 and BMR Guideline Section 5.2 to allow the for-sale affordable units to differ in the following design aspects: smaller size, interior layout, fewer bathrooms, increased number of bedrooms, smaller living area, less parking, smaller windows, different exterior finishes and massing, fewer balconies, and different interior finishes, lighting, and appliances, second from City’s Municipal Code Section 16.45.120(4)(c)(iii) to allow common open space required as part of the development of the for-sale affordable units of 400 square feet that does not meet the minimum 20 feet by 20 feet dimension requirement pursuant to the code and third from City’s Municipal Code Section 16.45.080 allowing no designated vehicular parking spaces for the proposed commercial space within the proposed apartment building that includes rental affordable units; and
WHEREAS, the applicant is requesting the first waiver to allow the construction of forsale affordable units using volunteer labor and donated materials, the second waiver to allow fit the for-townhomes as programmed and designed at the allowed density without losing any affordable units, and the third waiver to allow development of the commercial space without having to expand the garage area to accommodate dedicated commercial space parking requiring reduction in the residential density and for-rent affordable units; and WHEREAS, at a duly noticed public meeting on June 7, 2023, the Housing Commission considered the applicant’s BMR proposal and draft BMR Housing Agreements, inclusive of the 74 inclusionary BMR units, and forwarded a recommendation of approval to the Planning Commission and City Council of the proposed BMR Housing Agreements showing unit sizes/types affordable to low-income households; and
WHEREAS, as allowed by Section 13 of the City’s BMR Guidelines, the applicant requests approval of Project specific alternate guidelines in order to allow the development of the for-sale BMR units consistent with Habitat for HGSF development model; and WHEREAS, at the duly noticed public meeting on June 7, 2023, the Housing Commission considered the applicant’s request for Project specific alternative BMR guidelines and forwarded a recommendation of approval to the Planning Commission and City Council; and WHEREAS, the Planning Commission has read and considered those certain Below Market Rate Housing Agreements (“BMR Agreements”) between the City and The Sobrato Organization and their affordable housing partner HGSF and finds that those satisfy the requirements of Chapter 16.96 of the City’s Municipal Code and in the BMR Housing Program Guidelines, except as modified, and would result in affordable housing that meets the City’s affordable housing goals and results in a BMR program for the Project with characteristics that DocuSign Envelope ID: E2D8C7ED-A6E5-4C02-B2F0-C46170CD03B7 Page I-1.400
Resolution No.: 2023-40
are a reasonable equivalent alternative to a program that strictly complied with the BMR Housing Program Guidelines; and
WHEREAS, Section 16.45.070 of the City of Menlo Park Municipal Code requires that bonus level projects that are developed at a greater level of intensity with an increase in density, FAR, and/or height shall provide one or more community amenities to address the needs that result from the effect of the increased development. The value of the community amenities to be provided shall be equal to 50 percent of the fair market value of the additional gross floor area of the bonus level development; and
WHEREAS, pursuant to the requirements of Section 16.45.070 of the City of Menlo Park Municipal Code, the City commissioned R. Blum and Associates to evaluate the appraisal provided by the applicant to determine the value of the Project’s community amenities contribution. The appraisal determined the project’s community amenities obligation would amount to $3,350,000. The Community Development Director determined that the appraisal was created pursuant to the City’s guidelines and approved the appraisal; and WHEREAS, on December 6, 2022, the applicant submitted the community amenities proposal that provides eight rental units affordable to low-income households valued at approximately $4,200,299 as part of the Project’s community amenities proposal; and WHEREAS, the City commissioned BAE urban economics to evaluate the community amenities proposal and subsequently determined that the value of the proposed eight low-income rental units, at $4,169,795 or $819,795 greater than the community amenities obligation of $3,350,000 and is therefore consistent with the Zoning Ordinance requirements; and WHEREAS, for these reasons, the community amenities proposal meets the minimum requirements of the Zoning Ordinance; and
WHEREAS, the proposed Project includes the removal of 29 heritage-size trees that have been evaluated by the City Arborist and on January 6, 2023 the City Arborist conditionally approved the heritage tree removal permit. The conditional action was posted on the site and mailed notices were sent out stating the action and no appeals were filed with the City; and WHEREAS, the proposed project would include a minimum of 58 heritage tree replacements, per the required 2:1 replacement ratio of the Heritage Tree Ordinance in effect at the time of submittal of a complete application under the provisions of SB 330; and WHEREAS, a phased vesting tentative map application requests to subdivision to merge the existing five legal parcels within the approximately 8.5-acre project site and create 316 multifamily apartment unit building including the proposed commercial space within one of the legal parcels, 116 townhome condominium units to be sold individually on three legal parcels, and create one legal parcel to accommodate the publicly accessible paseo, emergency vehicle access, and park; and
DocuSign Envelope ID: E2D8C7ED-A6E5-4C02-B2F0-C46170CD03B7 Page I-1.401
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WHEREAS, the Project requires discretionary actions by the City as summarized above, and therefore the California Environmental Quality Act (“CEQA,” Public Resources Code Section §21000 et seq.) and CEQA Guidelines (Cal. Code of Regulations, Title 14, §15000 et seq.) require analysis and a determination regarding the Project’s environmental impacts; and WHEREAS, on November 29, 2016, in connection with an update to the Land Use and Circulation Elements of the City’s General Plan and related zoning changes, commonly referred to as the ConnectMenlo project, the City certified the ConnectMenlo Final EIR (ConnectMenlo EIR); and
WHEREAS, the City is the lead agency, as defined by CEQA and the CEQA Guidelines, and is therefore responsible for the preparation, consideration, certification, and approval of environmental documents for the Project; and
WHEREAS, the Project would be developed at the bonus level allowances of the Zoning Ordinance, and therefore, is subject to the settlement agreement between the City of Menlo Park and City of East Palo Alto (“Settlement Agreement”), which requires project-specific environmental impact reports (“EIRs”) for certain future projects. Pursuant to the Settlement Agreement, the project-specific EIR may tier from the certified program level ConnectMenlo Final EIR (“ConnectMenlo EIR”) which was certified by the City Council on November 29, 2016, as part of an update to the Land Use and Circulation Elements of the General Plan and related zoning changes, commonly referred to as ConnectMenlo, and the project-specific EIR shall include a project specific analysis for all required topic areas pursuant to CEQA Guidelines Section 15162(d). The City shall also prepare a housing needs assessment (“HNA”) to inform the population and housing topic area of the Project EIR; and WHEREAS, the City released a Notice of Preparation (“NOP”) for a prior version of the project including office buildings along with residential uses was released for a 30-day circulation period starting on January 8, 2021 to February 8, 2021. The City reissued the NOP for a revised 100 percent residential project on September 10, 2021. Following the release of the revised NOP, the Planning Commission conducted a scoping session on September 27, 2021. Comments received by the City on the NOPs and at the public EIR scoping meeting were considered during the preparation of the Draft EIR; and
WHEREAS, on September 27, 2021, concurrently with the public NOP scoping meeting, the Planning Commission conducted a study session to review and provide comments on the Project’s conceptual design; and
WHEREAS, pursuant to the requirements of the Settlement Agreement and CEQA, the City prepared, or caused to be prepared, a project level EIR and conducted a HNA for the Project; and
WHEREAS, the Draft EIR was released on November 28, 2022 for a minimum 45-day review period that ended on January 27, 2023. The public review period included one duly noticed public meeting on December 12, 2022 to received oral and written comments on the Draft EIR; and
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Resolution No.: 2023-40
WHEREAS, On December 12, 2022, as part of the duly noticed public hearing to review the Draft EIR, the Planning Commission also conducted a study session and provided an opportunity for members of the public to provide comments on the proposed project design, BMR proposal, and community amenities proposal; and
WHEREAS, the Draft EIR was filed with the California Office of Planning and Research and copies of the Draft EIR were made available at the Community Development Department, on the City’s website and at the Menlo Park Library; and
WHEREAS, on August 4, 2023, the City published a Response to Comments Document that contains all of the comments received during the public comment period, including a transcript of the public hearing, and written responses to those comments, and any text changes to the Draft EIR, prepared in accordance with CEQA and the CEQA Guidelines, and an analysis of the Project (which included minor modifications from the project as analyzed in the Draft EIR) that demonstrates that development of the Project would not result in any new or more severe environmental effects than were analyzed in the Draft EIR. The Draft EIR, Response to Comments Document, text changes to the Draft EIR, and analysis of the modified Project constitute the Final EIR, a copy of which is available in Exhibit A; and
WHEREAS, the Final EIR identified no potentially significant adverse effects on the environmental caused by the Proposed Project; and
WHERAS, the Planning Commission specifically finds that where more than one reason for approving the Proposed Project and rejecting alternatives is given in its findings or in the record; and
WHEREAS, the City prepared or caused to be prepared the Findings of Fact as included in Exhibit B in accordance with CEQA and CEQA Guidelines Section 15091; and WHEREAS, the City prepared or caused to be prepared a Mitigation Monitoring and Reporting Program (“MMRP”), which is incorporated herein by this reference and as part of the Final EIR, which will ensure all mitigation measures relied upon in the findings are fully implemented and that all environmental impacts are reduced to a less than significant level; and WHEREAS, all required public notices and public hearings were duly given and held according to law; and
WHEREAS, after notice having been lawfully given, a duly noticed public hearing was held before the City Planning Commission on August 28, 2023 at which all persons interested had the opportunity to appear and comment; and
WHEREAS, after closing the public hearing, the Planning Commission considered all public and written comments, pertinent information, documents and plans an all other evidence in the public record on the Project; and
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Resolution No.: 2023-40
WHEREAS, the Planning Commission fully reviewed, considered, evaluated, and certified the Final EIR, along with all public and written comments, pertinent information, documents and plans prior to taking action to approve the use permit, architectural control, and community amenities proposal, and providing a recommendation to the City Council on the BMR Agreements and vesting tentative map.

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Menlo Park finds the foregoing recitals are true and correct, and they are hereby incorporated by reference into this Resolution.

BE IT FURTHER RESOLVED that the Planning Commission of the City of Menlo Park hereby resolves as follows:

1. The Final EIR has been prepared, published, circulated, and reviewed in compliance with the California Environmental Quality Act and the CEQA Guidelines.

2. The Final EIR constitutes an adequate, accurate, objective, and complete analysis addressing all issues relevant to the approval of the proposed Project including the issuance of a use permit, architectural control permit, and heritage tree removal permit and approval of the community amenities proposal, BMR Housing agreements, and vesting tentative map for the Project.

3. The Planning Commission has been presented with, reviewed and considered the information contained in the above recitals and within the Final EIR prior to acting on the proposed Project, and the Final EIR reflects the independent judgement and analysis of the City pursuant to section 21082.1(c)(3) of the California Environmental Quality Act.

4. Notice of the Planning Commission’s hearings on the Draft EIR and Final EIR have been given as required by law and the actions were conducted pursuant to the State Planning and Zoning Law, CEQA, the State CEQA Guidelines. Additionally, all individuals, groups and agencies desiring to comment were given adequate opportunity to submit oral and written comments on the Final EIR which met or exceeded the requirements of State Planning and Zoning Law and CEQA. All comments submitted during the public review and comment period on the Draft EIR were responded to adequately in the Final EIR.

5. As set forth in the attached Findings of Fact, the Final EIR identifies all potential significant adverse environmental impacts and feasible mitigation measures or standard conditions of approval that would reduce these impacts to a less than significant level. All of the mitigation measures identified in the Final EIR, including those in the Mitigation Monitoring and Reporting Program, will be adopted and implemented as Conditions of Approval for the use permit and architectural control.

6. The monitoring and reporting of CEQA mitigation measures in connection with the Project will be conducted in accordance with the attached MMRP, and incorporated DocuSign Envelope ID: E2D8C7ED-A6E5-4C02-B2F0-C46170CD03B7 Page I-1.404
Resolution No.: 2023-40
into the Conditions of Approval of the use permit and architectural control for the Project. All proposed mitigation measures are capable of being fully implemented by the efforts of the City, the Applicant, or other identified public agencies of responsibility, and will reduce the environmental impacts to a less-than significant level.

7. Pursuant to CEQA Guidelines Section 15091 and CEQA Section 21081.6, and in support of its approval of the Project, the Planning Commission adopts the attached Findings of Fact and MMRP as set forth in Exhibits B and C of this Resolution.

8. The Planning Commission hereby certifies the Final EIR based upon consideration of the Finding of Facts, together with the staff report (copies of which are on file in the Planning Division), public testimony presented at the hearing, and all other oral and written evidence received by the City on this Project.

SEVERABILITY
If any term, provision, or portion of these findings or the application of these findings to a particular situation is held by a court to be invalid, void or unenforceable, the remaining provisions of these findings, or their application to other actions related to the Project, shall continue in full force and effect unless amended or modified by the City.

I, Kyle Perata, Planning Manager and Planning Commission Liaison of the City of Menlo Park, do hereby certify that the above and foregoing Planning Commission Resolution was duly and regularly passed and adopted at a meeting by said Planning Commission on the 28th day of August 2023, by the following votes:

AYES:

NOES:

Barnes, Do, Ehrich, Ferrick, Riggs
None
ABSENT: Harris, Schindler
ABSTAIN: None
IN WITNESS THEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this 28th day of August, 2023.

PC Liaison Signature
Kyle Perata
Planning Manager
City of Menlo Park
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Resolution No.: 2023-40
Exhibits
A. Final EIR
B. Statement of Findings and Facts pursuant to CEQA
C. Mitigation Monitoring and Reporting Program (MMRP)
D. Hyperlink: Project Plans including materials and colors board DocuSign Envelope ID: E2D8C7ED-A6E5-4C02-B2F0-C46170CD03B7 Page I-1.406
PLANNING COMMISSION RESOLUTION NO. 2023-41

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MENLO PARK

APPROVING THE USE PERMIT, ARCHITECTURAL CONTROL, AND APPROVAL OF THE COMMUNITY AMENITIES PROPOSAL FOR THE PROPOSED 123 INDEPENDENCE DRIVE PROJECT CONSISTING OF A 316 UNIT MULTI-FAMILY RESIDENTIAL APARTMENT BUILDING WITH AN APPROXIMATELY 2,000 SQUARE FEET COMMERCIAL SPACE AND 116 TOWNHOME CONDOMINIUM UNITS AT 119 INDEPENDENCE DRIVE, 123-125 INDEPENDENCE DRIVE, 127 INDEPENDENCE DIRVE, 1205 CHRYSLER DRIVE, AND 130 CONSTITUTION DRIVE (APNS: 055-236-140, 055-236-180, 055-236-240, 055-236-300, and 055-236-280) AND

ASSOCIATED OPEN SPACE AND INFRASTRUCTURE
WHEREAS, the City of Menlo Park (“City”) received an application requesting environmental review, use permit, architectural control, below market rate (BMR) housing agreement, major subdivision, and heritage tree removal permits from The Sobrato Organization (“Applicant”), to redevelop the properties located at 119 Independence Drive, 123-125 Independence Drive, 127 Independence Drive, 1205 Chrysler Drive, and 130 Constitution Drive (APNs 055-236-140, 055-236-180, 055-236-240, 055-236-300, and 055-236-280) (“Property”), with a bonus level development project consisting of an up to 316 unit multifamily rental apartment building with approximately 2,000 square feet commercial space and 116 for-sale townhome condominium units, which development is more particularly described in the Environmental Impact Report to the Project which was prepared pursuant to the California Environmental Quality Act (hereinafter the “Project”). The Project is depicted in and subject to the development plans which are attached hereto as Exhibit A (“Project Plans including colors and materials board”) and incorporated herein by this reference; and WHEREAS, the proposed Project is located in the R-MU-B (Residential Mixed UseBonus) zoning district. The R-MU-B zoning district allows a mixture of land uses with the purposes of providing high density housing to complement nearby employment, encouraging mixed use development with a quality living environment and neighborhood-serving retail and services on the ground floor that are oriented to the public, promoting a live/work/play environment with pedestrian activity, and blending with and complementing existing neighborhoods through site regulations and design standards that minimize impacts to adjacent uses; and
WHEREAS, the bonus level provisions identified in the City’s Zoning Ordinance allow a development to seek an increase in floor area ratio (FAR), density (dwelling units per acre), and/or height subject to approval of a use permit and the provision of community amenities equal to a minimum of 50 percent of the fair market value of the increased development potential and the applicant has submitted a community amenities proposal in compliance with the required minimum value; and
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WHEREAS, the proposed Project would be developed with an increase in FAR, height, and density pursuant to City’s bonus level development allowances; and WHEREAS, the proposed Project requests a use permit to allow modifications to the bird friendly design guidelines to allow some balcony railings in the project to be made out of fritted clear-glazed glass; and
WHEREAS, the proposed Project environmental impact report found that combined with low number of birds expected to be exposed to increases risk of collision, the fact that most birds would be urban generalists that already occur in the area, and less than ten percent of the glazing being fritted glass railing, the bird collision risk at the proposed Project would be less-thansignificant; and WHEREAS, pursuant to City’s General Plan goals and policies, the proposed Project is required to provide a publicly accessible paseo connecting Constitution Drive to Independence Drive; and
WHEREAS, the Project provides a minimum 20-foot wide paseo which increases in width at certain places. The paseo expands to create publicly open space of approximately 15,367 square feet in size before connecting Independence Drive; and
WHEREAS, the proposed Project complies with all applicable objective standards of the City’s Zoning Ordinance, including design standards, green and sustainable building standards, and is consistent with the City’s General Plan goals, policies, and programs; and WHEREAS, pursuant to the requirements of Sections 16.45.060 and 16.96.020 of the City of Menlo Park Municipal Code and the City’s Below Market Rate (“BMR”) Housing Program, the applicant submitted a BMR proposal that would provide 48 inclusionary rental units (15 percent of total proposed 316 multi-family apartment units), 18 inclusionary for-sale units (15 percent of total proposed 116 for-sale townhome units), and eight additional inclusionary rental units to fulfill the community amenities obligation for the proposed project; and WHEREAS, as allowed by the State Density Bonus Law and City’s Below Market Rate (BMR) Ordinance, the proposed Project requests two concessions for the development of for-sale affordable units: first from BMR Guidelines 5.1 and Section 16.96.060 of City’s Municipal Code to allow clustering of the affordable for-sale townhome units and second concession from BMR Guidelines 5.3.1 and Section 16.96.060 of City’s Municipal Code to allow a delayed construction schedule to develop the affordable units such that Habitat for Humanity Greater San Francisco (“HGSF”) would obtain building permits for the for-sale affordable townhomes within six months from issuance of first building permit for first market-rate townhome and HGSF would be required to complete the affordable townhomes within 24 months from their building permit issuance; and WHEREAS, the applicant requests the first concession to allow the use of volunteer labor as sweat equity towards purchase of affordable units and to allow leveraging of certain financial opportunities that would otherwise be unavailable and the second concession to allow a delay in DocuSign Envelope ID: 3D44943A-6372-45A8-B650-76C9F23D74CA Page I-1.408
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the development of affordable units to allow HGSF to rely on volunteer labor and sweat equity model and use donated goods and materials for construction of the affordable for-sale units; and WHEREAS, as allowed by the State Density Bonus Law and the City’s Below Market Rate (BMR) Ordinance, the proposed Project requests three waivers: first from City’s Municipal Code Section 16.97.100 and BMR Guideline Section 5.2 to allow the for-sale affordable units to differ in the following design aspects: smaller size, interior layout, fewer bathrooms, increased number of bedrooms, smaller living area, less parking, smaller windows, different exterior finishes and massing, fewer balconies, and different interior finishes, lighting, and appliances, second from City’s Municipal Code Section 16.45.120(4)(c)(iii) to allow common open space required as part of the development of the for-sale affordable units of 400 square feet that does not meet the minimum 20 feet by 20 feet dimension requirement pursuant to the code and third from City’s Municipal Code Section 16.45.080 allowing no designated vehicular parking spaces for the proposed commercial space within the proposed apartment building that includes rental affordable units; and
WHEREAS, the applicant is requesting the first waiver to allow the construction of forsale affordable units using volunteer labor and donated materials, the second waiver to allow fit the for-townhomes as programmed and designed at the allowed density without losing any affordable units, and the third waiver to allow development of the commercial space without having to expand the garage area to accommodate dedicated commercial space parking requiring reduction in the residential density and for-rent affordable units; and WHEREAS, at a duly noticed public meeting on June 7, 2023, the Housing Commission considered the applicant’s BMR proposal and draft BMR Housing Agreements, inclusive of the 74 inclusionary BMR units, and forwarded a recommendation of approval to the Planning Commission and City Council of the proposed BMR Housing Agreements showing unit sizes/types affordable to low-income households; and
WHEREAS, as allowed by Section 13 of the City’s BMR Guidelines, the applicant requests approval of Project specific alternate guidelines in order to allow the development of forsale BMR units consistent with HGSF development model; and WHEREAS, at the duly noticed public meeting on June 7, 2023, the Housing Commission considered the applicant’s request for Project specific alternative BMR guidelines and forwarded a recommendation of approval to the Planning Commission and City Council; and WHEREAS, the Planning Commission has read and considered those certain Below Market Rate Housing Agreements (“BMR Agreements”) between the City and The Sobrato Organization and their affordable housing partner HGSF and finds that those satisfy the requirements of Chapter 16.96 of the City’s Municipal Code and in the BMR Housing Program Guidelines, except as modified, and would result in affordable housing that meets the City’s affordable housing goals and results in a BMR program for the Project with characteristics that are a reasonable equivalent alternative to a program that strictly complied with the BMR Housing Program Guidelines; and
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WHEREAS, Section 16.45.070 of the City of Menlo Park Municipal Code requires that bonus level projects that are developed at a greater level of intensity with an increase in density, FAR, and/or height shall provide one or more community amenities to address the needs that result from the effect of the increased development. The value of the community amenities to be provided shall be equal to 50 percent of the fair market value of the additional gross floor area of the bonus level development; and
WHEREAS, pursuant to the requirements of Section 16.45.070 of the City of Menlo Park Municipal Code, the City commissioned R. Blum and Associates to evaluate the appraisal provided by the applicant to determine the value of the Project’s community amenities contribution. The appraisal determined the project’s community amenities obligation would amount to $3,350,000. The Community Development Director determined that the appraisal was created pursuant to the City’s guidelines and approved the appraisal; and WHEREAS, on December 6, 2022, the applicant submitted the community amenities proposal, incorporated herein as Exhibit B, that provides eight rental units affordable to lowincome households valued at approximately $4,200,299 as part of the Project’s community amenities proposal; and
WHEREAS, the City commissioned BAE urban economics to evaluate the community amenities proposal, incorporated herein as Exhibit C, and subsequently determined that the value of the proposed eight low-income rental units, at $4,169,795 or $819,795 greater than the community amenities obligation and is therefore consistent with the Zoning Ordinance requirements; and
WHEREAS, for these reasons, the community amenities proposal meets the minimum requirements of the Zoning Ordinance; and
WHEREAS, the proposed Project includes the removal of 29 heritage-size trees that have been evaluated by the City Arborist and on January 6, 2023 the City Arborist conditionally approved the heritage tree removal permit. The conditional action was posted on the site and mailed notices were sent out stating the action and no appeals were filed with the City; and WHEREAS, the proposed project would include a minimum of 58 heritage tree replacements, per the required 2:1 replacement ratio of the Heritage Tree Ordinance in effect at the time of submittal of a complete application under the provisions of SB 330; and WHEREAS, a phased vesting tentative map application requests to subdivision to merge the existing five legal parcels within the approximately 8.5-acre project site and create 316 multifamily apartment unit building with the proposed commercial space within one of the legal parcels, 116 townhome condominium units to be sold individually on three legal parcels, and create one legal parcel to accommodate the publicly accessible paseo, emergency vehicle access, and park; and
WHEREAS, the Project requires discretionary actions by the City as summarized above, and therefore the California Environmental Quality Act (“CEQA,” Public Resources Code Section DocuSign Envelope ID: 3D44943A-6372-45A8-B650-76C9F23D74CA Page I-1.410
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§21000 et seq.) and CEQA Guidelines (Cal. Code of Regulations, Title 14, §15000 et seq.) require analysis and a determination regarding the Project’s environmental impacts; and WHEREAS, on November 29, 2016, in connection with an update to the Land Use and Circulation Elements of the City’s General Plan and related zoning changes, commonly referred to as the ConnectMenlo project, the City certified the ConnectMenlo Final EIR (ConnectMenlo EIR); and
WHEREAS, the City is the lead agency, as defined by CEQA and the CEQA Guidelines, and is therefore responsible for the preparation, consideration, certification, and approval of environmental documents for the Project; and
WHEREAS, the Project would be developed at the bonus level allowances of the Zoning Ordinance, and therefore, is subject to the settlement agreement between the City of Menlo Park and City of East Palo Alto (“Settlement Agreement”), which requires project-specific environmental impact reports (“EIRs”) for certain future projects. Pursuant to the Settlement Agreement, the project-specific EIR may tier from the certified program level ConnectMenlo Final EIR (“ConnectMenlo EIR”) which was certified by the City Council on November 29, 2016, as part of an update to the Land Use and Circulation Elements of the General Plan and related zoning changes, commonly referred to as ConnectMenlo, and the project-specific EIR shall include a project specific analysis for all required topic areas pursuant to CEQA Guidelines Section 15162(d). The City shall also prepare a housing needs assessment (“HNA”) to inform the population and housing topic area of the Project EIR; and WHEREAS, the City released a Notice of Preparation (“NOP”) for a prior version of the project including office buildings along with residential uses was released for a 30-day circulation period starting on January 8, 2021 to February 8, 2021. The City reissued the NOP for a revised 100 percent residential project on September 10, 2021. Following the release of the revised NOP, the Planning Commission conducted a scoping session on September 27, 2021. Comments received by the City on the NOPs and at the public EIR scoping meeting were considered during the preparation of the Draft EIR; and
WHEREAS, on September 27, 2021, concurrently with the public NOP scoping meeting, the Planning Commission conducted a study session to review and provide comments on the Project’s conceptual design; and
WHEREAS, pursuant to the requirements of the Settlement Agreement and CEQA, the City prepared, or caused to be prepared, a project level EIR and conducted a HNA for the Project; and
WHEREAS, the Draft EIR was released on November 28, 2022 for a minimum 45-day review period that ended on January 27, 2023. The public review period included one duly noticed public meeting on December 12, 2022 to received oral and written comments on the Draft EIR; and
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WHEREAS, On December 12, 2022, as part of the duly noticed public hearing to review the Draft EIR, the Planning Commission also conducted a study session and provided an opportunity for members of the public to provide comments on the proposed project design, BMR proposal, and community amenities proposal; and
WHEREAS, the Draft EIR was filed with the California Office of Planning and Research and copies of the Draft EIR were made available at the Community Development Department, on the City’s website and at the Menlo Park Library; and
WHEREAS, on August 4, 2023, the City published a Response to Comments Document that contains all of the comments received during the public comment period, including a transcript of the public hearing, and written responses to those comments, and any text changes to the Draft EIR, prepared in accordance with CEQA and the CEQA Guidelines, and an analysis of the Project (which included minor modifications from the project as analyzed in the Draft EIR) that demonstrates that development of the Project would not result in any new or more severe environmental effects than were analyzed in the Draft EIR. The Draft EIR, Response to Comments Document, text changes to the Draft EIR, and analysis of the modified Project constitute the Final EIR, is included in Exhibit D; and
WHEREAS, all required public notices and public hearings were duly given and help according to law; and
WHEREAS, after notice having been lawfully given, a duly noticed public hearing was held before the City Planning Commission on August 28, 2023 at which all persons interested had the opportunity to appear and comment; and
WHEREAS, after closing the public hearing, the Planning Commission considered all public and written comments, pertinent information, documents and plans and all other evidence in the public record on the Project; and
WHEREAS, the Final Project EIR did not identify any potentially significant adverse effects on the environment caused by the Project; and
WHEREAS, on August 28, 2023, the Planning Commission fully reviewed, considered, evaluated the whole of the record including all public and written comments, pertinent information, document and plans, and certified the Final EIR for the Project adopted findings of fact in accordance with the CEQA (Exhibit E), and adopted a Mitigation Monitoring and Reporting Program (Exhibit F) prior to taking action to approve the use permit, inclusive of the proposed community amenities, and architectural control for the 123 Independence Drive Project.

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Menlo Park finds that the above recitals together with the staff report and the application materials, including without limitation, the EIR, and all other documents, reports, studies, maps, oral and written testimony, and materials in the City’s file for the applications and the Project, and all adopted and applicable City planning documents related to the Project and the Project Site and all associated evidentiary basis for the recommendations set forth in this resolution.

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BE IT FURTHER RESOLVED that the Planning Commission of the City of Menlo Park (“City”) hereby approves a use permit, subject to conditions, attached hereto and incorporated herein by this reference as Exhibit G, for the Project. The approval is granted based on the following findings which are made pursuant to Menlo Park Municipal Code Section 16.82.030:

1. That the consideration and due regard to the nature and condition of all uses and structures, and to general and specific plans for the area in question and surrounding areas, and impact of the application hereon; in that, the proposed project Final Environmental Impact Report determined that the proposed project with mitigation incorporated would cause less than significant impacts on the environment or less than significant impacts on the environment with mitigation incorporated. The proposed project is designed in a manner consistent with the goals, policies, and objectives of ConnectMenlo and applicable Zoning Ordinance requirements.

Specifically, the proposed project would be an infill project that would be compatible with the surrounding uses. The buildings would redevelop the project site currently occupied with an older office and warehouse buildings and locate new multifamily and townhome residential buildings on an underutilized property and the redevelopment would be undertaken at the bonus level of development in exchange for on-site community amenities. The proposed project includes on-site open space, parking, and the proposed buildings adheres to the design standards set forth by the Zoning Ordinance and therefore, the project would be consistent with ConnectMenlo.

Compliance with the Zoning Ordinance and consistency with ConnectMenlo would ensure that the project would not be detrimental to the health, safety, and welfare of the surrounding community. The project requests a use permit to allow modification to the bird friendly design standards to allow use of fritted clear-glazes glass on some of the balconies, which the project environmental impact report finds not to have an increased risk of collision and therefore presents a less-than-significant impact on the environment. Additionally, all external non-emergency lighting on the apartment building, townhomes, and landscaping, and common recreational spaces is required to be automatically switched off between the hours of 10 p.m. and sunrise to further prevent bird collision. The project is subject to mitigation measures and conditions of approval that ensure that all existing adjoining structures are appropriately protected during and after construction and the heritage tree removals would be replaced at a 2:1 ratio on the site, in compliance with the Heritage Tree Ordinance in effect at the time of the submittal of a complete SB330 development application. Moreover, the proposed project is designed with appropriate ingress and egress and sufficient onsite bicycle and vehicular parking; and therefore, will not have a detrimental impact on the surrounding areas.

2. That whether or not the establishment, maintenance, or the use applied for will, under the circumstance 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; in that, the proposed project is designed as a predominantly residential project with a 316 unit for-rent apartment building with approximately 2,000 square feet of commercial DocuSign Envelope ID: 3D44943A-6372-45A8-B650-76C9F23D74CA Page I-1.413
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space and 116 for-sale townhome condominium units, which are permitted uses pursuant to Chapter 16.45.020 of the City of Menlo Park Municipal Code. The proposed project is designed to meet all the applicable codes and ordinances of the City of Menlo Park Municipal Code and staff believes the proposed project would not be detrimental to the health, safety, and welfare of the surrounding community due to the architectural design of the building and the compliance with the Zoning Ordinance design standards and the architectural review process. The proposed project is consistent with the goals and policies established by the Connect/Menlo General Plan and would result in a project that embodies the live/work/play vision of ConnectMenlo and the R-MU zoning district. Specifically, the proposed project would contain residential buildings designed to be compatible with surrounding uses, and providing residential uses in vicinity of business uses addresses potential compatibility issues such as traffic, parking, light spillover, dust, odors, and transportation and use of potentially hazardous materials. The project requests a use permit to allow modification to the bird friendly design standards and allow use of fritted clear-glazes glass on some of the balconies, which the project environmental impact report finds not to have an increased risk of collision and therefore presents a less-than-significant impact on the environment. Additionally, all external nonemergency lighting on the apartment building, townhomes, and landscaping, and common recreational spaces is required to be automatically switched off between the hours of 10 p.m. and sunrise to further prevent bird collision. The proposed project is designed with sufficient vehicular and bicycle parking, as well as public, common, and private open spaces. The proposed paseo bifurcating the project site has been found to meet the requirements of publically accessible open space and paseos outlined in the Zoning Ordinance and provides pedestrian access across the site connecting two public rights-of-way. The project includes 56 inclusionary rental housing units and 18 on-site inclusionary for-sale townhomes and on-site amenities to serve the future residents of the project. Pursuant to State Density Bonus Law the project proposes to request concessions that would provide necessary relief from the City’s requirements in order to allow for-sale affordable housing to be developed using volunteer labor and donated materials on a separate parcel lending to ease of construction of the affordable units, availability of a variety of financing options, and cost savings. Additionally, pursuant to the State Density Bonus Law, the project is requesting three waivers from various development standards granting of which would allow the project to develop both for-rent and for-sale affordable units at the allowable density allowing deviation in size, materials, windows, number of bedrooms, parking, and design when compared to the for-sale market rate units; in the minimum width of the required common outdoor open space; and total number of parking spaces dedicated for use of the proposed approximately 2,000 square feet of commercial space. The proposed project is designed with stoops along the main thoroughfare and provides a publically accessible privately maintained park within the project site to further the goals and policies of the land use, circulation, and open space design. The project is designed with appropriate ingress and egress and off-site improvements such as landscaping, street lighting, sidewalks, and green infrastructure. The project Final Environmental Impact Report determined that the project would have less than significant impacts on the environment after DocuSign Envelope ID: 3D44943A-6372-45A8-B650-76C9F23D74CA Page I-1.414
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implementation of mitigation measures. Therefore, the proposed project would not be detrimental to the health, safety, morals, comfort, and general welfare of the persons residing or working in the neighborhood.

BE IT FURTHER RESOLVED that the Planning Commission of the City of Menlo Park (“City”) hereby approves the community amenities proposal as part of the use permit for bonus level development attached hereto as Exhibit B, subject to conditions, attached hereto and incorporated herein by this reference as Exhibit G, for the Project. The Planning Commission hereby resolves:

1. Pursuant to Chapter 16.45, Section 16.45.070 of the City’s Municipal Code and with Menlo Park City Council Resolution No. 6360 (the City Council adopted Community Amenities List), public interest and convenience requires that are developed at a greater level of intensity with an increase in density, FAR, and/or height shall provide one or more community amenities to address the needs that result from the effect of the increased development. The value of the community amenities to be provided shall be equal to 50 percent of the fair market value of the additional gross floor area of the bonus level development which has been determined to be $3,350,000.

2. The City of Menlo Park hereby approves the applicant’s community amenities proposal to provide eight inclusionary rental apartment units affordable to low-income households at a value of $4,169,795 which would be $819,795 above the project community amenities value per the appraisal pursuant to the evaluation undertaken by the City’s consultant BAE urban economics.

BE IT FURTHER RESOLVED that the Planning Commission of the City of Menlo Park (“City”) hereby approves an architectural control permit, subject to conditions, attached hereto and incorporated herein by this reference as Exhibit G, for the Project. The approval is granted based on the following findings which are made pursuant to Menlo Park Municipal Code Section 16.68.020:

1. That the general appearance of the structures is in keeping with character of the neighborhood; in that, the proposed project is designed in a contemporary architectural style incorporating stoops for both the multi-family and townhomes units fronting publically accessible paseo and public rights-of-way and solid glass storefront windows for the leasing office space for the apartment building along the majority of the primary street façades. The materials and forms of the proposed buildings would provide modulations and articulations along the façades of the buildings. The materials and modulations would comply with the City’s Zoning Ordinance design standards and would provide visually interesting building facades on both the apartment and the townhome buildings. The apartment façade would predominately consist of cement plaster, fiber cement siding, porcelain tile, and dark colored vinyl windows. The townhome unit facades would be designed in a varying combination of cement plaster, fiber cement paneling, brick veneer, metal and asphalt shingle roofs, dark vinyl windows, panelized garage doors, and vertical metal railings.

Pursuant to the State Density Bonus Law, the project is requesting three waivers. The first waiver from the City’s Municipal Code Section 16.97.100 and BMR Guidelines DocuSign Envelope ID: 3D44943A-6372-45A8-B650-76C9F23D74CA Page I-1.415
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Section 5.2 allowing the affordable for-sale units to be constructed such that the exterior finishes, architectural elevations, floor plans, interior finishes, parking, and balconies and different from that of the for-sale market rate units allowing the applicant to simplify the design for ease of constructability by volunteer labor and allow variation in the finishes based on the types of donations received by the affordable housing developer. The second requested waiver is from the City’s Municipal Code Section 16.45.120(4)(c)(iii) allowing the Project to provide the required common open space without meeting the 20 feet by 20 feet minimum dimensions allowing the project developer to provide the required number of for-sale affordable units at the density allowed and providing the required open space area without losing affordable units and a third waiver from Section 16.45.080 allowing the Project to not provide designated parking spaces to serve the proposed commercial use such that the proposed garage would not be required to expand or change therefore not impact the overall residential density and the total number of for-rent affordable units that Project is able to provide. The project incorporates complementary colors, and the stucco would comply with the Zoning Ordinance design standards. The project requests a use permit to allow modification to the bird friendly design standards and allow use of fritted clear-glazes glass on some of the balconies, which the project environmental impact report finds not to have an increased risk of collision and therefore presents a less-than-significant impact on the environment. The Project would comply with the base height, building projections, and major and minor modulations along with ground floor transparency, entrances, and garage entrance requirements even after the requested waivers are incorporated. Compliance with the Zoning Ordinance would further the goals and policies of ConnectMenlo for residential design and compatible buildings with surrounding land uses while providing affordable housing.

2. That the development will not be detrimental to the harmonious and orderly growth of the city; in that, the project is a predominantly residential development with 316 units proposed within a multi-family rental apartment building with approximately 2,000 square feet of ground floor commercial space and 116 condominium townhome units are proposed on the remainder of the site along with publicly accessible open space, parking, landscaping, and other improvements. The project’s design is generally consistent with all applicable requirements of the City of Menlo Park Municipal Code. The proposed project does include two waiver requests to modify the City’s Municipal Code requirements outlined in Sections 16.97.100 and

16.45.120(4)(c)(iii) such that the proposed for-sale townhome units would be allowed to different in design, size, layout, architectural elevations, exterior and interior materials, and parking from the market-rate for-sale townhome units and the required open space would not meet the minimum 20 feet by 20 feet dimension requirements such that the project developer is able to provide affordable units consistent with the required density and by using volunteer labor and donated materials. However, even with the requested waivers, the Project meets the objective development standards outlined in the City’s Municipal Code for the R-MU-B zoning district. The proposed Project is consistent with the new development and population growth envisioned by ConnectMenlo. Moreover, the proposed project is designed in a manner that is DocuSign Envelope ID: 3D44943A-6372-45A8-B650-76C9F23D74CA Page I-1.416
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consistent with the existing and future development in the area. The project is designed with appropriate ingress and egress and appropriate number of vehicular and bicycle parking on site to serve the residents and guests. The project would provide a publically accessible public paseo that connects two major thoroughfares and would also provide a pedestrian and bicycle connection across the connecting two public rights-of-way consistent with the land use and circulation element goals and policies of ConnectMenlo. Therefore, the project will not be detrimental to the harmonious and orderly growth of the city.

3. That the development will not impair the desirability of investment or occupation in the neighborhood; in that, the proposed project consists of a multifamily building with 316 apartment units and approximately 2,000 square feet of commercial space and 116 townhome condominium units, which are uses that are consistent with the applicable standards of the Zoning Ordinance for the project site. The proposed project is designed in a manner consistent with all applicable codes and ordinances, as well as the ConnectMenlo goals and policies. The proposed Project contributes to the available affordable housing in the area and provides community amenities to serve the adjoining neighborhood and businesses. The proposed project would redevelop and underutilized site. The proposed project contributes towards providing for-sale and for-rent units in the area and similarly provides for-rent and for-sale affordable housing adding to the availability and variety of housing stock to households with various needs at different income levels. The proposed project would provide publicly accessible pedestrian and bicycle connectivity through the project site, publicly accessible park for community use, as well as additional ground level open space to enhance the pedestrian experience in the area. Therefore, the proposed project would not impair the desirability of investment or occupation in the neighborhood.

4. That the development provides adequate parking as required in all applicable city ordinances and has made adequate provisions for access to such parking; in that, the proposed project provides a total of 510 vehicular parking spaces, where a minimum number of 432 and maximum number of 648 parking spaces are required pursuant to the Zoning Ordinance requirements. The project is requesting a waiver pursuant to the State Density Bonus Law allowing no additional dedicated parking attributed to the proposed commercial use, such that the project is not required to expand the garage or change the proposed residential density. The proposed project is required pursuant to the Zoning Ordinance to reduce vehicle trips from the site by 20 percent from the typical land uses within the site, through the implementation of a transportation demand management program. The on-site parking would be unbundled from the units and would likely reduce the parking demand of the project, per the requirements of the Zoning Ordinance. Lastly, consistent with the Zoning Ordinance requirements, the project provides 474 long-term bicycle parking spaces, and 48 short-term bicycle parking spaces to serve the apartment building and 174 long-term and 18 short-term bicycle parking spaces to serve the proposed townhome units. The project would also provide two bicycle parking space near the entrance of the commercial space to serve the proposed commercial use. The long-term bicycle DocuSign Envelope ID: 3D44943A-6372-45A8-B650-76C9F23D74CA Page I-1.417
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storage is located on the first floor of the apartment building and that for the townhomes units is located within the garage. The short term bicycle parking spaces are located near the two entrances to the apartment building, near the publically open space and at various other locations in proximity to the townhome buildings.

Therefore, the proposed development provides sufficient on-site parking for both vehicles and bicycles.

5. That the development is consistent with any applicable specific plan; in that, the Project is located in the Bayfront Area which is not subject to any specific plan.

However, the project is consistent with the all the applicable goals, policies, and programs of ConnectMenlo and is consistent with all applicable codes, ordinances, and requirements outlined in the City of Menlo Park Municipal Code.

SEVERABILITY
If any term, provision, or portion of these findings or the application of these findings to a particular situation is held by a court to be invalid, void or unenforceable, the remaining provisions of these findings, or their application to other actions related to the Project, shall continue in full force and effect unless amended or modified by the City.

I, Kyle Perata, Planning Manager and Planning Commission Liaison of the City of Menlo Park, do hereby certify that the above and foregoing Planning Commission Resolution was duly and regularly passed and adopted at a meeting by said Planning Commission on the 28th day of August 2023, by the following votes:

AYES:

NOES:

Barnes, Do, Ehrich, Ferrick, Riggs
None
ABSENT: Harris, Schindler
ABSTAIN: None
IN WITNESS THEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this 28th day of August, 2023.

PC Liaison Signature
Kyle Perata
Planning Manager
City of Menlo Park
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Exhibits
A. Project Plans including materials and color board -
B. Project community amenities proposal -
C. Hyperlink: BAE’s evaluation of the project community amenities proposal - D. Final EIR
E. Statement of Findings and Facts pursuant to CEQA
F. Mitigation Monitoring and Reporting Program (MMRP)
G. Conditions of Approval
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PLANNING COMMISSION RESOLUTION NO. 2023-42

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MENLO PARK

RECOMMENDING CITY COUNCIL APPROVE BELOW MARKET RATE HOUSING AGREEMENTS AND VESTING TENTATIVE MAP FOR THE PROPOSED 123 INDEPENDENCE DRIVE PROJECT CONSISTING OF A 316 UNIT MULTI-FAMILY RESIDENTIAL APARMENT BUILDING WITH AN APPROXIMATELY 2,000 SQUARE FEET COMMERCIAL SPACE AND 116 TOWNHOME CONDOMINIUM UNITS AT 119 INDEPENDENCE DRIVE, 123-125 INDEPENDENCE DRIVE, 127 INDEPENDENCE DIRVE, 1205 CHRYSLER DRIVE, AND 130 CONSTITUTION DRIVE (APNS: 055-236- 140, 055-236-180, 055-236-240, 055-236-300, and 055-236-280), AND ASSOCAITED OPEN

SPACE AND INFRASTRUCTURE
WHEREAS, the City of Menlo Park (“City”) received an application requesting environmental review, use permit, architectural control, below market rate (BMR) housing agreement, major subdivision, and heritage tree removal permits from The Sobrato Organization (“Applicant”), to redevelop the properties located at 119 Independence Drive, 123-125 Independence Drive, 127 Independence Drive, 1205 Chrysler Drive, and 130 Constitution Drive (APNs 055-236-140, 055-236-180, 055-236-240, 055-236-300, and 055-236-280) (“Property”), with a bonus level development project consisting of an up to 316 unit multifamily rental apartment building with approximately 2,000 square feet of commercial space and 116 for-sale townhome condominium units, which development is more particularly described in the Environmental Impact Report to the Project which was prepared pursuant to the California Environmental Quality Act (hereinafter the “Project”). The Project is depicted in and subject to the development plans which are attached hereto as Exhibit A (“Project Plans including colors and materials board”) and incorporated herein by this reference; and WHEREAS, the proposed Project is located in the R-MU-B (Residential Mixed UseBonus) zoning district. The R-MU-B zoning district allows a mixture of land uses with the purposes of providing high density housing to complement nearby employment, encouraging mixed use development with a quality living environment and neighborhood-serving retail and services on the ground floor that are oriented to the public, promoting a live/work/play environment with pedestrian activity, and blending with and complementing existing neighborhoods through site regulations and design standards that minimize impacts to adjacent uses; and
WHEREAS, the bonus level provisions identified in the City’s Zoning Ordinance allow a development to seek an increase in floor area ratio (FAR), density (dwelling units per acre), and/or height subject to approval of a use permit and the provision of community amenities equal to a minimum of 50 percent of the fair market value of the increased development potential and the applicant has submitted a community amenities proposal in compliance with the required minimum value; and
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WHEREAS, the proposed Project would be developed with an increase in FAR, height, and density pursuant to City’s bonus level development allowances; and WHEREAS, the proposed Project requests use permit to allow modification to the bird friendly design guidelines to allow some balcony railings in the project to be made out of fritted clear-glazed glass; and
WHEREAS, the proposed Project environmental impact report found that combined with low number of birds expected to be exposed to increases risk of collision, the fact that most birds would be urban generalists that already occur in the area, and less than ten percent of the glazing being fritted glass railing, the bird collision risk at the proposed Project would be less-thansignificant; and WHEREAS, pursuant to City’s General Plan goals and policies, the proposed Project is required to provide a publicly accessible paseo connecting Constitution Drive to Independence Drive; and
WHEREAS, the Project provides a minimum 20-foot wide paseo which increases in width at certain places. The paseo expands to create publicly open space of approximately 15,367 square feet in size before connecting Independence Drive; and
WHEREAS, the proposed Project complies with all applicable objective standards of the City’s Zoning Ordinance, including design standards, green and sustainable building standards, and is consistent with the City’s General Plan goals, policies, and programs; and WHEREAS, pursuant to the requirements of Sections 16.45.060 and 16.96.020 of the City of Menlo Park Municipal Code and the City’s Below Market Rate (“BMR”) Housing Program, the applicant submitted a BMR proposal that would provide 48 inclusionary rental units (15 percent of total proposed 316 multi-family apartment units), 18 inclusionary for-sale units (15 percent of total proposed 116 for-sale townhome units), and eight additional inclusionary rental units to fulfill the community amenities obligation for the proposed project; and WHEREAS, as allowed by the State Density Bonus Law and City’s Below Market Rate (BMR) Ordinance, the proposed Project requests two concessions for the development of for-sale affordable units: first from BMR Guidelines 5.1 and Section 16.96.060 of City’s Municipal Code to allow clustering of the affordable for-sale townhome units and second concession from BMR Guidelines 5.3.1 and Section 16.96.060 of City’s Municipal Code to allow a delayed construction schedule to develop the affordable units such that Habitat for Humanity Greater San Francisco (“HGSF”) would obtain building permits for the for-sale affordable townhomes within six months from issuance of first building permit for first market-rate townhome and HGSF would be required to complete the affordable townhomes within 24 months from their building permit issuance; and WHEREAS, the applicant requests the first concession to allow the use of volunteer labor as sweat equity towards purchase of affordable units and to allow leveraging of certain financial opportunities that would otherwise be unavailable and the second concession to allow a delay in DocuSign Envelope ID: 832C3FC3-B987-44C4-A400-8B4014A31852 Page I-1.421
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the development of affordable units to allow HGSF to rely on volunteer labor and sweat equity model and use donated goods and materials for construction of the affordable for-sale units; and WHEREAS, as allowed by the State Density Bonus Law and the City’s Below Market Rate (BMR) Ordinance, the proposed Project requests three waivers: first from City’s Municipal Code Section 16.97.100 and BMR Guideline Section 5.2 to allow the for-sale affordable units to differ in the following design aspects: smaller size, interior layout, fewer bathrooms, increased number of bedrooms, smaller living area, less parking, smaller windows, different exterior finishes and massing, fewer balconies, and different interior finishes, lighting, and appliances, second from City’s Municipal Code Section 16.45.120(4)(c)(iii) to allow common open space required as part of the development of the for-sale affordable units of 400 square feet that does not meet the minimum 20 feet by 20 feet dimension requirement pursuant to the code and third from City’s Municipal Code Section 16.45.080 allowing no designated vehicular parking spaces for the proposed commercial space within the proposed apartment building that includes rental affordable units; and
WHEREAS, the applicant is requesting the first waiver to allow the construction of forsale affordable units using volunteer labor and donated materials, the second waiver to allow for the for-townhomes as programmed and designed at the allowed density without losing any affordable units, and the third waiver to allow development of the commercial space without having to expand the garage area to accommodate dedicated commercial space parking requiring reduction in the residential density and for-rent affordable units; and WHEREAS, at a duly noticed public meeting on June 7, 2023, the Housing Commission considered the applicant’s BMR proposal, incorporated herein as Exhibit B, and draft BMR Housing Agreements, inclusive of the 74 inclusionary BMR units, and forwarded a recommendation of approval to the Planning Commission and City Council of the proposed BMR Housing Agreements showing unit sizes/types affordable to low-income households; and WHEREAS, as allowed by Section 13 of the City’s BMR Guidelines, the applicant requests approval of Project specific alternate guidelines in order to allow the development of forsale BMR units consistent with HGSF model, of the City Council; and WHEREAS, at the duly noticed public meeting on June 7, 2023, the Housing Commission considered the applicant’s request for Project specific alternative BMR guidelines and forwarded a recommendation of approval to the Planning Commission and City Council; and WHEREAS, the Planning Commission has read and considered those certain Below Market Rate Housing Agreements (“BMR Agreements”) between the City and The Sobrato Organization, incorporated herein as Exhibits C and D, and their affordable housing partner HGSF, incorporated herein as Exhibit E, and finds that those satisfy the requirements of Chapter 16.96 of the City’s Municipal Code and in the BMR Housing Program Guidelines, except as modified, and would result in affordable housing that meets the City’s affordable housing goals and results in a BMR program for the Project with characteristics that are a reasonable equivalent alternative to a program that strictly complied with the BMR Housing Program Guidelines; and DocuSign Envelope ID: 832C3FC3-B987-44C4-A400-8B4014A31852 Page I-1.422
Resolution No.: 2023-42
WHEREAS, Section 16.45.070 of the City of Menlo Park Municipal Code requires that bonus level projects that are developed at a greater level of intensity with an increase in density, FAR, and/or height shall provide one or more community amenities to address the needs that result from the effect of the increased development. The value of the community amenities to be provided shall be equal to 50 percent of the fair market value of the additional gross floor area of the bonus level development; and
WHEREAS, pursuant to the requirements of Section 16.45.070 of the City of Menlo Park Municipal Code, the City commissioned R. Blum and Associates to evaluate the appraisal provided by the applicant to determine the value of the Project’s community amenities contribution. The appraisal determined the project’s community amenities obligation would amount to $3,350,000. The Community Development Director determined that the appraisal was created pursuant to the City’s guidelines and approved the appraisal; and WHEREAS, on December 6, 2022, the applicant submitted the community amenities proposal that provides eight rental units affordable to low-income households valued at approximately $4,200,299 as part of the Project’s community amenities proposal; and WHEREAS, the City commissioned BAE urban economics to evaluate the community amenities proposal and subsequently determined that the value of the proposed eight low-income rental units, at $4,196,795 or $819,795 greater than the community amenities obligation and is therefore consistent with the Zoning Ordinance requirements; and WHEREAS, for these reasons, the community amenities proposal meets the minimum requirements of the Zoning Ordinance; and
WHEREAS, the proposed Project includes the removal of 29 heritage-size trees that have been evaluated by the City Arborist and on January 6, 2023, and the City Arborist conditionally approved the heritage tree removal permit. The conditional action was posted on the site and mailed notices sent out stating the action and no appeals were filed with the City; and WHEREAS, the proposed project would include a minimum of 58 heritage tree replacements, per the required 2:1 replacement ratio of the Heritage Tree Ordinance in effect at the time of submittal of a complete application under the provisions of SB 330; and WHEREAS, the Project requires discretionary actions by the City as summarized above, and therefore the California Environmental Quality Act (“CEQA,” Public Resources Code Section §21000 et seq.) and CEQA Guidelines (Cal. Code of Regulations, Title 14, §15000 et seq.) require analysis and a determination regarding the Project’s environmental impacts; and WHEREAS, on November 29, 2016, in connection with an update to the Land Use and Circulation Elements of the City’s General Plan and related zoning changes, commonly referred to as the ConnectMenlo project, the City certified the ConnectMenlo Final EIR (ConnectMenlo EIR); and
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Resolution No.: 2023-42
WHEREAS, the City is the lead agency, as defined by CEQA and the CEQA Guidelines, and is therefore responsible for the preparation, consideration, certification, and approval of environmental documents for the Project; and
WHEREAS, the Project would be developed at the bonus level allowances of the Zoning Ordinance, and therefore, is subject to the settlement agreement between the City of Menlo Park and City of East Palo Alto (“Settlement Agreement”), which requires project-specific environmental impact reports (“EIRs”) for certain future projects. Pursuant to the Settlement Agreement, the project-specific EIR may tier from the certified program level ConnectMenlo Final EIR (“ConnectMenlo EIR”) which was certified by the City Council on November 29, 2016, as part of an update to the Land Use and Circulation Elements of the General Plan and related zoning changes, commonly referred to as ConnectMenlo, and the project-specific EIR shall include a project specific analysis for all required topic areas pursuant to CEQA Guidelines Section 15162(d). The City shall also prepare a housing needs assessment (“HNA”) to inform the population and housing topic area of the Project EIR; and WHEREAS, the City released a Notice of Preparation (“NOP”) for a prior version of the project including office buildings along with residential uses was released for a 30-day circulation period starting on January 8, 2021 to February 8, 2021. The City reissued the NOP for a revised 100 percent residential project on September 10, 2021. Following the release of the revised NOP, the Planning Commission conducted a scoping session on September 27, 2021. Comments received by the City on the NOPs and at the public EIR scoping meeting were considered during the preparation of the Draft EIR; and
WHEREAS, on September 27, 2021, concurrently with the public NOP scoping meeting, the Planning Commission conducted a study session to review and provide comments on the Project’s conceptual design; and
WHEREAS, pursuant to the requirements of the Settlement Agreement and CEQA, the City prepared, or caused to be prepared, a project level EIR and conducted a HNA for the Project; and
WHEREAS, the Draft EIR was released on November 28, 2022 for a minimum 45-day review period that ended on January 27, 2023. The public review period included one duly noticed public meeting on December 12, 2022 to received oral and written comments on the Draft EIR; and
WHEREAS, On December 12, 2022, as part of the duly noticed public hearing to review the Draft EIR, the Planning Commission also conducted a study session and provided an opportunity for members of the public to provide comments on the proposed project design, BMR proposal, and community amenities proposal; and
WHEREAS, the Draft EIR was filed with the California Office of Planning and Research and copies of the Draft EIR were made available at the Community Development Department, on the City’s website and at the Menlo Park Library; and
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Resolution No.: 2023-42
WHEREAS, on August 4, 2023, the City published a Response to Comments Document that contains all of the comments received during the public comment period, including a transcript of the public hearing, and written responses to those comments, and any text changes to the Draft EIR, prepared in accordance with CEQA and the CEQA Guidelines, and an analysis of the Project (which included minor modifications from the project as analyzed in the Draft EIR) that demonstrates that development of the Project would not result in any new or more severe environmental effects than were analyzed in the Draft EIR. The Draft EIR, Response to Comments Document, text changes to the Draft EIR, and analysis of the modified Project constitute the Final EIR, which is included in Exhibit F; and
WHEREAS, a phased vesting tentative map application requests to merge the existing five legal parcels within the approximately 8.5-acre project site and re-subdivide the project site to create 316 multi-family apartment unit building including the 2,000 square feet commercial space within one of the legal parcels, 116 townhome condominium units to be sold individually on three legal parcels, and create one legal parcel to accommodate the publicly accessible paseo, emergency vehicle access, and park; and
WHEREAS, the project proposes to execute the vesting tentative map in two phases. First phase would merge all the parcels and create four lots consisting of one lot (lot A) to receive the apartment building fronting Constitution Drive, the public paseo/park lot (lot 1) and third and fourth lots (lot B and lot C) would merge the parcels to create the lot to receive the townhomes.

The second phase would further subdivide lots B, C, and D to create townhome condominiums; and
WHEREAS, notwithstanding the anticipated phasing plan, included herein as Exhibit G, the applicant may elect to develop the project in a single phase or modify the project phasing as permitted by the Subdivision Map Act; and
WHEREAS, staff has determined that the proposed vesting tentative map, included herein as Exhibit H, includes the required data and statements listed in the Subdivision Ordinance, and all information is complete and accurate; and
WHEREAS, all required public notices and public hearings were duly given and help according to law; and
WHEREAS, after notice having been lawfully given, a duly noticed public hearing was held before the City Planning Commission on August 28, 2023 at which all persons interested had the opportunity to appear and comment; and
WHEREAS, after closing the public hearing, the Planning Commission considered all public and written comments, pertinent information, documents and plans and all other evidence in the public record on the Project; and
WHEREAS, the Final Project EIR did not identify any potentially significant adverse effects on the environment caused by the Project; and
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Resolution No.: 2023-42
WHEREAS, on August 28, 2023, the Planning Commission fully reviewed, considered, evaluated the whole of the record including all public and written comments, pertinent information, document and plans, and certified the Final EIR for the Project adopted findings of fact in accordance with the CEQA (attached herein as Exhibit I), and adopted a Mitigation Monitoring and Reporting Program, attached herein as Exhibit J, prior to taking action to approve the use permit and architectural control for the 123 Independence Drive Project.

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Menlo Park finds that the above recitals together with the staff report and the application materials, including without limitation, the EIR, and all other documents, reports, studies, maps, oral and written testimony, and materials in the City’s file for the applications and the Project, and all adopted and applicable City planning documents related to the Project and the Project Site and all associated evidentiary basis for the recommendations set forth in this resolution.

BE IT FURTHER RESOLVED that the Planning Commission makes the following findings and recommendations:

1. BMR Agreements. The BMR Agreements satisfy the requirements of Chapter 16.96 of the City’s Municipal Code and the applicable BMR Housing Guidelines, as amended by the Use Permit. The request to modify BMR Housing Guidelines under Section 13 to allow first right of refusal in favor of Habitat for Humanity Greater San Francisco (HGSF) first and the City second, amending the definition of first-time homebuyer, modify the timing of when the educational requirements are completed and include other educational requirements such as sweat equity, modify what constitutes towards income limits for the purchasers, prohibit refinancing of affordable units after sale, modify the process of resale of the affordable units, and request that the City appoint HGSF as its designee or program provider and coordinator undertaking orientation, education, marketing, applicant selection, and title requirements to provide 18 for-sale low-income affordable units and 56 rental apartment units (includes eight low-income affordable rental units provided as part of the Project community amenities) affordable to low-income households as part of the proposed Project. The Planning Commission finds that the deviations from the BMR Housing Program Guidelines Sections 5.5, 7.1, 7.1.1, 7.2, 7.4, 10.2, and 11 meet the requirement of the BMR Housing Program Guidelines Section 13, which allows the City Council to approve a BMR proposal and ensuring Agreement(s) that is not consistent with every section of the BMR Guidelines where the deviation results in the proposal providing a reasonable equivalent alternative that is commensurate with the goals of the BMR Housing Program Guidelines. The Planning Commission recommends that the City Council waive the BMR Housing Program Guidelines Sections 5.5, 7.1, 7.1.1, 7.2, 7.4, 10.2, 11, and designate HGSF to be the City’s designee or program provider to undertake orientation, marketing, and other activities around sale of the affordable townhome units, to promote development of for-sale units affordable to low-income households. The Planning Commission recommends that the City Council approve applicant’s BMR proposal and BMR regulatory Agreements, including an agreement for the for-rent affordable units and for-sale affordable units in a form substantially consistent with the Agreements attached DocuSign Envelope ID: 832C3FC3-B987-44C4-A400-8B4014A31852 Page I-1.426
Resolution No.: 2023-42
hereto as Exhibits C, D, and E of this resolution, and direct the City Manager to execute the BMR Agreements on behalf of the City.

2. Vesting Tentative Map. The Planning Commission recommends that the City Council find that the approval of the Vesting Tentative Map is consistent with the requirements of the Subdivision Map Act and City of Menlo Park Municipal Code Section 15.22.020 for the following reasons:
a. The proposed Vesting Tentative Map for the Project Site is technically correct and in compliance with all applicable State regulations, City General Plan, Zoning and Subdivision Ordinances, and the State Subdivision Map Act. b. The proposed Vesting Tentative Map for the project Site, including the contemplated design and improvements, is consistent with the applicable General Plan goals and policies, in particular that goals for the Bayfront Area set forth in the General Plan. The project is consistent with the land use designations described in the General Plan and would be consistent with the City General Plan policies as well as City Zoning Ordinance requirements for bonus level development projects at the proposed density and for the types of uses.
c. The project Site is physically suitable for the proposed development, including the proposed density of development, and the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially injure fish or wildlife or their habitat. The project is consistent with the density and uses for the site set forth in the General Plan.

The project Site is in an urbanized area of the City currently occupied by office/warehouse development, landscaped, and hardscaped areas that include various urban uses and does not include any aquatic habitat. The project would not cause substantial environmental damage to the already disturbed Project Site and would not substantially injure the limited wildlife that access the site or their habitat.
d. The design of the subdivision or types of improvements is not likely to cause serious public health or safety problems. The project would comply with the General Plan’s goals and policies, City Zoning and Subdivision Ordinances, and other applicable regulations designed to prevent serious health and safety problems.
e. The design of the subdivision or the type of improvements does not conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision because alternate easements for access or use will be provided that are substantially equivalent to ones previously acquired by the public.

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Resolution No.: 2023-42
f. The project is subject to flood and inundation hazards and is not located within a slide area. The Project Site is located within the 100-year flood hazard zone.

However, the contemplated Project design and improvements will be elevated so as to mitigate flood hazards, and the Project would comply with the applicable requirements designed in mitigate flood hazards as well as address future sea level rise.

Based on the above findings, the Planning Commission recommends that the City Council approve the Vesting Tentative Map in form substantially consistent with Exhibit H, subject to Vesting Tentative Map conditions of approval attached herein as Exhibit K.

SEVERABILITY
If any term, provision, or portion of these findings or the application of these findings to a particular situation is held by a court to be invalid, void or unenforceable, the remaining provisions of these findings, or their application to other actions related to the Project, shall continue in full force and effect unless amended or modified by the City.

I, Kyle Perata, Planning Manager and Planning Commission Liaison of the City of Menlo Park, do hereby certify that the above and foregoing Planning Commission Resolution was duly and regularly passed and adopted at a meeting by said Planning Commission on the 28th day of August 2023, by the following votes:

AYES:

NOES:

Barnes, Do, Ehrich Ferrick, Riggs
None
ABSENT: Harris, Schindler
ABSTAIN: None
IN WITNESS THEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this 28th day of August, 2023.

PC Liaison Signature
Kyle Perata
Planning Manager
City of Menlo Park
Exhibits
A. Project Plans including materials and color board and vesting tentative map - B. Project Below Market Rate proposal including requested concession, waivers, and modifications to the BMR Guidelines
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Resolution No.: 2023-42
C. Draft Below Market Rate Housing Agreement and Declaration of Restrictive Covenants with The Sobrato Organization
D. Draft Below Market Rate For-Sale Housing Agreement and Declaration of Restrictive Covenants with The Sobrato Organization
E. Draft Below Market Rate Housing Agreement and Declaration of Restrictive Covenants with Habitat for Humanity Greater San Francisco (HGSF)
F. Final EIR
G. Vesting Tentative Map phasing narrative
H. Vesting Tentative Map
I. Statement of Findings and Facts pursuant to CEQA
J. Mitigation Monitoring and Reporting Program
K. Vesting Tentative Map conditions of approval
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To: City of Menlo Park and The Sobrato Organization
Re: HGSF’s Marketing, Outreach, and Lottery process
Date: February 7, 2023

RECOMMENDATION
Based on an internal review and various conversations, Habitat Greater San Francisco (“HGSF”) would like to express our desire and intent to work with the City of Menlo Park to use the city’s BMR guidelines, and specifically the city’s legacy list, and other preferences in selecting homeowners for the 123 Independence project.

Per the city’s request, the marketing and outreach, lottery process, and homeowners’ selection and qualifications narrative below, summarizes HGSF’s typical outreach and selection process and outlines how we propose working with the city’s BMR Guidelines and Legacy List. As stated above, our intent and desire are to work with the city and use their existing Legacy List, preferences, rankings, and guidelines to the extent allowable by all State and Federal fair housing and all other applicable rules and regulations.

MARKETING & OUTREACH
HGSF employs a marketing strategy that is reflective of our mission, commitment to diversity, equity, and inclusion, and complies with local, state, and federal rules and regulations. Prior to launching a marketing cycle for our affordable ownership program, HGSF typically develops a Marketing Plan in partnership with the host city. The Marketing Plan typically includes information about the homes, buyer qualifications, marketing strategy, marketing activities, outreach materials, and timeframes.

HGSF’s general marketing and outreach process includes the following steps:

1. Create Marketing Plan with input and approval from appropriate stakeholders.

2. Implement Marketing Plan up to 1.5 years prior to Certificate of Occupancy (end of construction). Elements of marketing and outreach may include:
a. Electronic and print material distribution to the City of Menlo Park BMR Purchase Legacy list and other preference lists as determined by agreements with funding partners. Partnerships with community-based organizations, faith-based organizations, school and parent groups, employers and employer networks, civic associations, city agencies and other resources serving first-time homebuyers in the host city.
b. In-person and online application Information Sessions targeted at first-time homebuyers who meet the eligibility requirements established by HGSF and the host city. These information sessions will serve a multi-lingual audience to maximize their access to the homeownership opportunities being marketed.

3. The marketing and outreach cycle typically lasts between three and four months.

4. In this case, HGSF proposes to first reach out to those on the legacy list (in rank list order) and invite these households to apply. These applicants will be given preference for application and eligibility.

5. If the Legacy List is exhausted and a lottery is utilized, HGSF recommends deferring to a general lottery pool to determine processing order. Interested clients would submit a lottery ATTACHMENT H Page I-1.430
application that screens for lottery eligibility. Please note that because this is self-reported data, actual eligibility for the program is determined post-lottery.

6. Pre-screened, eligible applicants are entered into the lottery.

MENLO PARK RANKED LEGACY LIST
In the example for the City of Menlo Park, the following preferences would apply:

1. BMR Purchase Legacy List

2. Live/work

3. Unhoused

4. Displacement

5. Accessible unit
All applicants would be processed by preference priority, in lottery rank order.

LOTTERY PROCESS
In the event of a lottery, eligible applicants would be invited to attend a virtual lottery hosted by HGSF. All the lottery numbers are randomly sorted using Microsoft Excel. Each applicant is assigned an "unfiltered" ranking between 1 and the total number of applicants. For example, in a lottery with 800 applicants, each applicant will be assigned a number between 1 and 800.

The lottery determines the order in which applications are processed. Those whose lottery numbers are called will be asked to submit a complete application with supporting documentation for the program.

Example: Jenny has an "unfiltered" ranking of 2, and Shonda has an "unfiltered" ranking of 6.

They are both in the Other Preference category (not Legacy List). Jenny and Shonda have the highest "unfiltered" rankings of all other applicants in the other preferences. Therefore, Jenny would have a ranking of 1 and Shonda would have a ranking of 2 in the Preference List B.

Under the city’s BMR guidelines, those in the BMR purchase legacy list waitlist would get priority over other preferences. Moreover, the legacy list has a rank list order. In this case, HGSF would first reach out to those on the list (in rank list order) and invite these households to apply. If the legacy list is Page I-1.431
exhausted and there are still units needing to be filled, HGSF would refer to the general lottery pool to determine processing order.

HOMEOWNER SELECTION & QUALIFICATION
To move forward with HGSF’s affordable ownership program, applicants must demonstrate the ability to pay (income, debt, credit), need for housing (low income), and willingness to partner with HGSF (sweat equity). All eligible households are approved by HGSF’s Board of Directors.

Please feel free to reach out to me with any questions and comments. We appreciate your continued collaboration and support of our project.

Sincerely,
Maureen Sedonaen
Maureen Sedonaen | Chief Executive Officer
She, Her, Hers
Habitat for Humanity Greater San Francisco
300 Montgomery St Ste 450
San Francisco CA 94104
(415) 625-1001
Page I-1.432
Aug 28, 2023
City of Menlo Park
701 Laurel St.

Menlo Park, CA 94025
Re: Use Permit for Project on Independence Drive
By email: [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected] Cc: [email protected], [email protected], [email protected] Dear Menlo Park Planning Commission:

The California Housing Defense Fund (“CalHDF”) submits this letter to remind the Commission of its obligation to abide by all relevant state housing laws when evaluating the proposed mixed-use development project with 432 total units, including 74 affordable units, at 123 Independence Drivel, 119 Independence Drive, 123-125 Independence Drive, 127 Independence Drive, 1205 Chrysler Drive, and 130 Constitution Drive. The Housing Accountability Act (Gov. Code § 65589.5; the “HAA”) requires approval of zoning and general plan compliant housing development projects unless findings can be made regarding specific, objective, written health and safety hazards. The HAA also bars cities from imposing conditions on the approval of such projects that would reduce the project’s density unless, again, such written findings are made.

The proposed development complies with local land use rules, including the City’s Zoning Code land use designation of the R-MU-B (Residential Mixed Use-Bonus) zone. The HAA’s protections therefore apply, and the City must not reject the project, except based on health and safety standards, as outlined above.

CalHDF also writes to emphasize that the Density Bonus Law (Gov. Code § 65915; the “DBL”) offers the proposed development certain protections. The Commission must respect these protections. Specifically, it must not deny the project the proposed waivers concessions with respect to building clustering on a separate parcel and different construction schedules. 360 Grand Ave #323, Oakland 94610
www.calhdf.org
ATTACHMENT I Page I-1.433
As you are well aware, California remains in the throes of a statewide crisis-level housing shortage. New housing such as this is a public benefit; it will bring increased tax revenue and new customers to local businesses, and it will reduce displacement of existing residents. It will also help cut down on transportation-related greenhouse gas emissions by providing housing in denser, more urban areas, as opposed to farther-flung regions in the state (and out of state). While no one project will solve the statewide housing crisis, the proposed development at Independence Drive is a step in the right direction. CalHDF urges the City Council to approve it, consistent with its obligations under state law.

CalHDF, formerly known as the California Renters Legal Advocacy and Education Fund, or “CaRLA,” is a 501(c)3 non-profit corporation whose mission includes advocating for increased access to housing for Californians at all income levels, including low-income households. You may learn more about CalHDF at www.calhdf.org.

Sincerely,
Dylan Casey
CalHDF Executive Director
Courtney Welch
CalHDF Director of Planning and Investigation
2 of 2
Page I-1.434
From: Ross Silverstein <[email protected]>
Sent: Wednesday, September 13, 2023 1:49 PM
To: _Planning Commission <[email protected]> Subject: Current mixed use developments aren't actually mixed use CAUTION: This email originated from outside of the organization. Unless you recognize the sender's email address and know the content is safe, DO NOT click links, open attachments or reply.

Hello Planning Commission,
While I know the proper time and forum to have addressed this would have been during the Planning Commission meetings, it seems like I'm too late for that but figured I would send this email out anyway.

For projects like Menlo Uptown, Menlo Portal, and 123 Independence Dr... all of these are zoned under Mixed Use R-MU-B, but it pains me to see that all of these projects are basically all residential. It looks like Menlo Uptown will have one building for offices. Portal & 123 Independence will have 2,000 sqft (basically 0) for offices... but zero retail at all.

Mixed use developments are (or at least can be) great because it combines different use-cases into a more consolidated geographic area, so we don't have siloed areas only for living/working/shopping.

Why then do none of these projects have the ground floor be used for restaurants, stores, services, banks etc so these people actually have stuff to do in their own neighborhood? As-is, while the increased density is great, all of these people will go home and either stay in their apartment with nothing to do, or need to drive to a different neighborhood to go to a restaurant or buy groceries.

In fact, a quick search for "grocery store" shows there are literally zero in Bayfront / Menlo Park North, and the only two in the entirety of Belle Haven are right on Willow Rd.

As a planning commission, you have the opportunity to improve the future of our city by actually providing a quality neighborhood experience for future residents of these developments. I implore you to consider the entire living experience for future projects.

Thank you.

Page I-1.435
123 INDEPENDENCE DRIVE PROJECT
119, 123-125, 127 Independence Dr., 130 Constitution Dr., 1205 Chrysler Dr. BMR housing agreements and vesting tentative map Staff presentation to City Council, September 26, 2023 I1-PRESENTATION
 Project-specific modifications to the Below Market Rate (BMR) Guidelines for Equivalent Alternatives
 Three BMR housing agreements
– Rental BMR agreement– For-sale BMR agreement with Habitat for Humanity Greater San Francisco
– For-sale BMR agreement with The Sobrato Organization in case Habitat unable to proceed
 Vesting tentative map
– Parcelization– Creation of 116 for-sale condominium townhouse units

CITY COUNCIL REVIEW
2 PROJECT PROPOSAL
3  316 rental apartment units (48 BMR
units)
 116 for-sale townhome units (18 forsale BMR units)  8 additional BMR rental units as community amenity
 All BMR units affordable to low-income
households
 2,000 sq.ft. ground floor commercial
space
 Vesting tentative map
On August 28 the Commission adopted resolutions:
 Certifying Final Environmental Impact Report, adopting CEQA findings, and Mitigation Monitoring and Reporting Program  Approving use permit and architectural control for
building and site design Including community amenities in exchange for bonus level development
 Recommending approval of three BMR housing
agreements and vesting tentative map to City Council

PLANNING COMMISSION ACTIONS
4  Modifications to programmatic and administrative elements of the BMR Guidelines, including:– Characteristics of units (Section 5)– Eligibility requirements (Section 7)– Occupancy requirements (Section 10)– Resale of BMR units (Section 11)

PROJECT SPECIFIC BMR HOUSING GUIDELINES MODIFICATIONS
5  Allows the project to be developed in phases
– Phase 1:
• Reconfigure existing lots• Allows development of apartment building and paseo/open space – Phase 2:
• Creates three townhome parcels
– Vesting tentative map would abandon and establish easements  The 116 townhomes would be mapped as
condominium units to allow for individual ownership of each unit

VESTING TENTATIVE MAP
6 RECOMMENDED ACTIONS
7 Adopt resolutions: 1. Approving three BMR housing agreements including requested project-specific modifications to the BMR Housing Guidelines for provision of 56 BMR rental apartments and 18 for-sale townhome units (Attachment A)

2. Approving vesting tentative map for a major
subdivision to modify the parcel configuration and create 116 townhome condominium units (Attachment B)

THANK YOU
Community Development
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov

STAFF REPORT
City Council
Meeting Date: 9/26/2023
Staff Report Number: 23-220-CC
Regular Business: Direct staff to return with funding agreements authorizing the grant of below market rate housing
funds as follows: 1) $2,000,000 for Habitat for
Humanity of Greater San Francisco, 2) $2,000,000
for MidPen Housing, Inc., and 3) $180,000 to
Rebuilding Together Peninsula and to provide
direction on a notice of funding availability
application at 1162 El Camino Real
Recommendation
Staff recommends the City Council:

1. Direct staff to return with funding agreements authorizing the grant of below market rate (BMR) housing funds as follows: 1) $2,000,000 for Habitat for Humanity of Greater San Francisco (HGSF), 2) $2,000,000 for MidPen Housing, Inc. (MidPen), and 3) $180,000 for Rebuilding Together Peninsula (RTP).

2. Provide direction regarding potential options of a land donation and/or affordable housing development for the 1162 El Camino Real development project in fulfilling its BMR requirements.

Policy Issues
The City Council retains sole discretion to award available monies from the BMR housing fund collected in accordance with Menlo Park Municipal Code Chapter 16.96. As set forth in §14.3 of the City of Menlo Park BMR Guidelines, projects include the preservation of existing affordable housing, acquisition or new construction of permanent affordable rental or ownership housing, and other activities to support housing for extremely low, very low or low-income households. Funding through the notice of funding availability (NOFA) is intended to fill the financing gap between the projected total project costs and other available funding sources.

Background
On Dec. 23, 2022, the City released a NOFA of approximately $2 million from the BMR housing fund to support the preservation or production of permanent affordable housing. Project eligibility requirements are outlined in the NOFA application document. The City received four applications before the NOFA deadline which met the basic requirements and target the priority income groups and one funding request following the deadline. Table 1 summarizes the four applications and their funding request, and the applications are included in Attachment A.

The four applications are further described below.

AGENDA ITEM J-1 Page J-1.1
Staff Report #: 23-220-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Table 1 – Summary of NOFA applications
Organization Type of
activity Location Description Amount requested Subsidy per unit HGSF
New
construction:

BMR
ownership
123
Independence
Dr.

Development of 18
townhomes – low
income (80% AMI or
below)
$2,000,000 $111,111
HIP Housing
New
construction:

BMR rental
1162 El
Camino Real
Development of 9 rental
units - low income $11,300,000 $1,257,323
MidPen
New
construction:

BMR rental
795 Willow
Rd.

Development of 62
rental units apartments
for veterans-extremely
low income and very
low income
$2,000,000 $32,258
RTP
Preservation:
homeowner
rehabilitation
Belle Haven
neighborhood
Rehabilitate eight
homes owned by low
income families
$180,000 $22,500
Total requested $15,480,000
Habitat for Humanity – 123 Independence Dr.

HGSF proposes to provide 18 affordable low-income ownership townhomes as part of a partnership with the Sobrato Organization that is proposing to redevelop an 8-acre office and light industrial site into a mixed residential project consisting of 316 rental units and 116 ownership townhome units, and approximately 2,000 square feet of commercial uses. The 18 affordable low-income ownership units are Sobrato’s required inclusionary obligation (15% x 116 = 17.4 rounded up to 18 units) for the ownership part of the project. However, this proposal targets lowering the household income level from the required moderate income to low income for the ownership units.

HIP Housing – 1162 El Camino Real
HIP Housing proposes to develop a nine-unit, low-income rental project. Prince Street Partners has approved plans to build nine apartment units at 1162 El Camino Real. The project includes six market rate units and three affordable units to fulfill the inclusionary obligation of one unit for the project itself and two units for the nearby mixed-use development project located at 506-556 Santa Cruz Avenue/1125 Merrill Street. Prince Street Partners is also exploring alternatives to meeting its BMR requirement with a donation of the land to the City or partnering with an affordable developer to develop a 100% affordable project.

These alternatives could potentially fulfill the affordable housing obligation of three units at the 1162 El Camino Real site. HIP is also working toward providing additional dwelling units and deeper affordability than required. However, any alternative would require additional review by the City to ensure the chosen alternative is equivalent to or exceeds the cost/value of the required BMR units at the site. There is additional discussion about this proposal later in this report as well as a request for feedback from the City Council.

MidPen – 795 Willow Rd.

MidPen’s proposal would support the development of 62 extremely-low and very-low income rental units targeted to veterans and their families who are formerly or at risk of homelessness. The property is owned by the U.S Department of Veterans Affairs (VA) as part of its Veterans Affairs campus. MidPen was selected to develop this project by the VA through its request for qualifications in 2019. Since it is Federal property, the site is technically not subject to the City’s discretionary planning approvals; however MidPen intends to comply with the City’s R-4-S zoning requirements in recognition of its location and connection to Page J-1.2
Staff Report #: 23-220-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov the surrounding community. The Planning Commission reviewed the proposal at a study session May 15 and the community development director’s designee determined it to be in substantial conformance with the City’s R-4-S regulations May 26.

RTP – Belle Haven Neighborhood
RTP proposes to rehabilitate the homes of eight homeowners whose incomes range from extremely-low to low income in the Belle Haven neighborhood. This free program repairs homes, primarily owned by seniors, allowing owners to age in place. Most homes need flooring repairs or replacement, as well as safety modifications and mobility enhancements. Energy efficiency items are included as appropriate. RTP has identified eight homeowners, verified their income and ownership, and developed a preliminary list of repairs for each property. Since the submittal of the application, some of the homes have been rehabilitated.

However, RTP is confident other homes can be found that require repairs.

On Aug. 3, the Housing Commission recommended that the City Council approve three of the NOFA applications for a total of $4.18 million. During the application submittal period between Dec. 23, 2022 and Jan. 27 the City received an additional $5.4 million in BMR fees. Staff recommended using some of the additional BMR funding for the NOFA. The HIP Housing proposal for 1162 El Camino Real was not recommended for funding at this time because of the high per unit subsidy cost and other factors that require City Council input. Those items will be presented later in the report. For greater information regarding staff analysis of each application and the NOFA application, the Aug. 3 Housing Commission staff report has been included (Attachment A).

Note: In August, the City received a proposal from Belle Haven Action requesting the City to provide funding for a 5-year local rental assistance pilot program to further “buy down” the affordability for some of the Gateway Rising affordable housing units at 1345 Willow Rd. This proposal was not reviewed by the Housing Commission as part of the current NOFA process, but could potentially be eligible for BMR funding. Similar to the process for the other applications, staff will evaluate and analyze the rental assistance program proposal and seek a recommendation by the Housing Commission. The City Council would review the proposal and Housing Commission’s recommendation at a subsequent meeting.

The City Council’s requested action is solely to commit the BMR funds to the various organizations. Staff will return to the City Council with the funding agreements for its consideration, likely as consent calendar items, when the actual funding agreements have been finalized.

Analysis
The approved applications were reviewed for consistency with the City’s BMR guidelines, the 2023-31 Housing Element and the current General Plan. Each application was consistent with one or more Housing Element policy or programs. The new construction projects will also help the City meet its Regional Housing Needs Allocation (RHNA) requirement.

Because these projects propose a range of affordable housing solutions, they vary in meeting the NOFA project priorities outlined in the NOFA and bulleted below. Attachment A includes additional details and a comparison.
• The project has reasonable costs, the ability to compete well in securing competitive funding sources, and is soundly underwritten.
• The project will allow the City to spend housing funds expeditiously, projects should be “ready to go” (priority to completion in three years).
• The project site allows development to achieve maximum density and is consistent with the applicable Page J-1.3
Staff Report #: 23-220-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov zoning.
• The project incorporates appropriate community spaces, amenities, and services for the target population.
• The project site is within walking distance of transit, services, and amenities and is convenient for the target population.
• The project is in central or west Menlo Park.
• The project contains larger units (2+ bedroom units and larger) and generally targets families.

Staff and the Housing Commission are recommending that the City Council commit BMR funds to serve low-income households in the Habitat for Humanity’s for-sale project, MidPen’s VA campus development serving veterans and their families and Rebuilding Together’s home repair/preservation program in Belle Haven. Staff is also requesting direction from the City Council regarding how to move forward with the HIP Housing proposal.

HIP Housing – 1162 El Camino Real
Staff is requesting the City Council provide direction to staff whether to continue exploring the land donation option/affordable development with the developer as an alternative to payment of an in-lieu fee payment.

As mentioned, HIP Housing proposed to provide nine low-income rental units on the property located at 1162 El Camino Real. 1162 El Camino Real is a small, 11,200 sq. ft. lot in which Prince Street Partners received project approval in 2021 to build nine apartment units. The project was approved for six market rate units and three affordable units – one unit to fulfill the inclusionary obligation of the project itself and two units to fulfill the BMR housing obligations for the nearby mixed-use development project located at 506-556 Santa Cruz Avenue/1125 Merrill Street, also owned by Prince Street Partners. In April 2023, the Santa Cruz BMR agreement was amended to “transfer” its two unit BMR requirement to the 1162 El Camino Real project. If the 1162 El Camino Real project is not built within two years of the approved amended agreement to provide those two off-site BMR units, the developer will need to pay in-lieu fees. The amended agreement notes the calculation and timing for the in-lieu payment.

Prince Street Partners has indicated that moving forward with the development at this time is not a good financial decision in this market. Prince Street Partners is exploring alternatives to meeting its BMR requirement with either a donation of the land to the City for a future project or partnering with an affordable housing developer to construct a 100% affordable project (the HIP proposal). Either option could potentially fulfill the inclusionary obligation of the 506-556 Santa Cruz Ave./1125 Merrill St. project. The City’s BMR Ordinance and Guidelines note that land dedication is an alternative means of compliance for rental housing; however, the City will need to evaluate whether the land dedication is equivalent in value to the two inclusionary units required to be provided from the 506-556 Santa Cruz Ave./1125 Merrill St. project.

HIP is continuing to explore providing additional dwelling units and deeper affordability than required.

For the HIP proposal, currently, the only committed financing for the project would be the land donation as well as the completed architectural plans. HIP estimates the land to be valued at $3.4 million. The financing challenge for this proposed project is that there are few funding resources available for small projects. It is too small to be competitive for low-income tax credits or other state programs. Therefore, the City would likely become the major funder of any affordable housing project on this site. That being said, the remaining gap for the project requested from the City is $11.3 million, or about $1.2 million per unit. At present, there is currently approximately $4.3 million in the BMR fund. Please see Table 2 below for reference. The estimated development cost per unit, excluding land, is $1,471,000. HIP has worked with a local contractor to look at lowering development costs by increasing the number of units to 12 with slight modifications to the current plans, which would reduce the City subsidy to about $927,000 per unit. Because HIP Housing is still Page J-1.4
Staff Report #: 23-220-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov exploring development scenarios, as well as the high per unit subsidy required, it was not recommended for funding at this time.

With the scarcity of available land in the City, the donation of land, especially in areas close to transit and services near downtown Menlo Park, is a unique opportunity for the City to gain possession of land for a future affordable housing project. Having an experienced developer like HIP Housing partner with the owner in developing an affordable housing development would also help the City meet its RHNA and its Affirmatively Furthering Fair Housing (AFFH) requirements. However, given the smaller size of the lot and the difficulty of financing a smaller affordable housing project, it would require substantial investment from the City.

The payment of in-lieu fees would allow the City to provide financial assistance to affordable housing developers in which the developer can leverage with other funding sources. However, the Planning Commission, when deliberating the BMR agreement extension April 24 preferred affordable housing unit production instead of payment of fees.

Staff is requesting the City Council provide direction to staff on whether to continue exploring the land donation option as an alternative to payment of the an in-lieu fee payment and an affordable housing development at 1162 El Camino Real.

BMR housing funds
A summary of the BMR housing fund balance is provided in Table 2. At the start of the 2023-24 fiscal year, staff calculated approximately $13.97 million in available BMR housing funds. As previously stated, City staff released the 2023 NOFA with available funding up to $2 million. However, during the NOFA release period, the City received $5.4 million in additional in-lieu payments. By retaining a portion of the fund balance, the City maintains an appropriate reserve for all activities outlined in the BMR housing program guidelines.

Table 2- Funding information
2023-24
Estimated adjusted available balance at end FY
2022-23 $13,968,645
Habitat for Humanity – Preservation Program
(approved) ($1,200,000)
MidPen -335 Pierce Road (on hold from previous
NOFA) ($3,600,000)
Operating Budget FY 2023-24 ($662,543)
2022-23 NOFA ($2,000,000)
Additional needed for NOFA application ($2,180,000)
Estimated ending balance $4,326,102
As defined in §13.3 of the City of Menlo Park BMR housing program guidelines, eligible uses of the BMR housing fund include costs to develop affordable housing and preserve existing affordable housing. The City’s BMR housing fund is a separate special fund, with no impact to the City’s general fund. Revenue contributed to the BMR housing fund is primarily derived from development fees.

The funding agreements for each of the recommended proposals will be brought to the City Council Page J-1.5
Staff Report #: 23-220-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov separately when ready. For the MidPen Housing proposal, staff anticipates a 3%, deferred, 55 year term, residual receipts loan agreement. These are the typical loan terms for a potential tax credit project.

For the Habitat for Humanity and Rebuilding Together proposals, staff anticipates that funding agreements for both would be structured as a forgivable loan or conditional grant with the aim that each program establish a revolving loan fund with the City funding for use on future projects. The agreement with the City for the use of the funds, which would include terms and requirements such as annual reports on the use of funds, fund balance, revolving loan fund balance, quantitative and qualitative data including number of loans made, status and number of projects completed, number of households/persons served, demographic information on households, outreach efforts and any program challenges.

Summary
The NOFA recommendations align with many of the NOFA priorities, including preserving affordable housing, improving neighborhoods, and increasing affordable housing supply in the City. The recommended proposals are also consistent with many of the proposed Housing Element policies and programs in the 2023-31 Housing Element.

Impact on City Resources
There is no impact on the City’s general fund. The $4.18 million commitment would come from the BMR housing fund to support the preservation of affordable housing in accordance with the requirements of the 2022 NOFA and BMR guidelines.

Environmental Review
This project and the funding of the project are exempt from the California Environmental Quality Act (CEQA) Guidelines §§ 15378 and 15061(b)(3) as it will not result in any direct or indirect physical change in the environment.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Hyperlink - Aug. 3 Housing Commission staff report:
menlopark.gov/files/sharedassets/public/v/3/agendas-and-minutes/housing-commission/2023- meetings/agendas/20230802-housing-commission-agenda-packet.pdf#page=11 Report prepared by:

Tim Wong, Housing Manager
Page J-1.6

CITY BELOW MARKET RATE FUND NOFA
Tim Wong, Housing Manager
J1-PRESENTATION
 Consider BMR housing fund recommendations
 Provide direction to staff regarding1162 El Camino RealOVERVIEW 2  NOFA released December 23, 2022
 $2.0 Million initial NOFA amount Four applications submitted August 2, 2023 Housing Commission meeting – Three applications recommended for funding– Total amount awarded: $4.18 Million

BELOW MARKET RATE (BMR) NOTICE OF FUNDING AVAILABILITY (NOFA) 3 Organization Type of Activity Description Amount
Requested
Habitat for Humanity-Greater San Francisco
New OwnershipConstruction
18 low income townhomes
$2,000,000
HIP Housing New Rental
Construction
Nine low income units
$11,300,000*
MidPen Housing, Inc.

New Rental Construction
62 extremely and very-low income units for veterans
$2,000,000
Rebuilding Together-Peninsula
Housing Rehabilitation
Rehabilitate eight units
$180,000
Total Requested $15,480,000

SUMMARY OF SUBMITTED APPLICATIONS
* Not recommended for funding by Housing Commission
4  Rent Assistance Program
– 5 year pilot program– Buy down unit affordability– Managed by Samaritan House– Request $120,000 per year for pilot program– Staff has not reviewed and Housing Commission did not consider this proposal

BELLE HAVEN ACTION PROPOSAL
5  Staff is seeking direction how to proceed with 1162 El Camino Real
 Prince Street Partner is exploring options to fulfill its BMR requirements for its Santa Cruz Ave./Merrill St. projects– Use of 1162 ECR as potential as off-site fulfillment – Donation of the parcel or partnering with an affordable housing developer • Current BMR agreements require units by April 2026 or pay in lieu BMR fees for SCA/Merrill
1162 EL CAMINO REAL
6 Staff recommends the City Council:

1. Direct staff to return with funding agreements authorizing the grant of below market rate (BMR) housing funds as follows: • $2,000,000 for Habitat for Humanity of Greater San Francisco (HGSF), • $2,000,000 for MidPen Housing, Inc. (MidPen), and • $180,000 for Rebuilding Together Peninsula (RTP).

2. Provide direction regarding potential options of a land donation and/or affordable housing development for the 1162 El Camino Real development project in fulfilling its BMR requirements.

RECOMMENDATION
7 THANK YOU
Opportunity Consideration
Donation of land • Secure site
• Access to transit and
services
• Smaller parcel• Few funding sources• Uncertain timeline AH development • Meet RHNA
• Actual units
• Very expensive• City will be main funding
source
In-lieu funding • Additional funding for
affordable housing
• Other AH developments
could use the funding
• No actual units (in short
term)
1162 ECR (CONT.)
9 ,.

MENLO PARK
City Manager's Office

STAFF REPORT
City Council
Meeting Date:

Staff Report Number:
9/26/2023
23-222-CC
Informational Item: City Council agenda topics: October 2023 Recommendation
The purpose of this informational item is to provide the City Council and members of the public access to the anticipated agenda items that will be presented to the City Council. The Mayor and city manager set the City Council agenda so there is no action required of the City Council as a result of this informational item.

Policy Issues
In accordance with the City Council procedures manual, the Mayor and city manager set the agenda for City Council meetings.

Analysis
In an effort to provide greater access to the City Council’s future agenda items, staff has compiled a listing of anticipated agenda items, Attachment A, through Oct. 24. The topics are arranged by department to help identify the work group most impacted by the agenda item.

Specific dates are not provided in the attachment due to a number of factors that influence the City Council agenda preparation process. In their agenda management, the Mayor and city manager strive to compile an agenda that is most responsive to the City Council’s adopted priorities and work plan while also balancing the business needs of the organization. Certain agenda items, such as appeals or State mandated reporting, must be scheduled by a certain date to ensure compliance. In addition, the meeting agendas are managed to allow the greatest opportunity for public input while also allowing the meeting to conclude around 11 p.m. Every effort is made to avoid scheduling two matters that may be contentious to allow the City Council sufficient time to fully discuss the matter before the City Council.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. City Council agenda topics: October 2023
Report prepared by:

Judi A. Herren, Assistant to the City Manager/City Clerk City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov AGENDA ITEM K-1 Page K-1.1
ATTACHMENT A Through Oct. 24 Tentative City Council Agenda # Title Department Item type City Council action 1 Accela five year agreement ASD Consent Contract award or amend 2 Master Fee Schedule update ASD Regular Adopt resolution 3 Closed session: labor CA Closed Session No action 4 Amend BMR guidelines regarding resale of ownership units CDD Consent Adopt resolution 5 Authorize the city manager to execute a purchase and sale agreement 975 Florence Ln CDD Consent Contract award or amend 6 Housing Element CDD Regular Direction to staff 7 Consider and adopt a resolution to close the Ryans Lane to vehicles to allow for expanded outdoor dining opportunities CDD, PW Regular Adopt resolution 8 Annual inflation protection adjustment for local minimum wage CMO Consent Receive and file 9 Approve advisory body annual work plan: Parks and Recreation Commission CMO Consent Approve 10 Communitywide electrification program with California Energy Commission (CEC) funding CMO Study Session Direction to staff 11 Proclamation: Cybersecurity Awareness Month CMO Proclamation No action 12 Proclamation: Latino Heritage Month CMO Proclamation No action 13 Proclamation: National Domestic Violence Awareness Month CMO Proclamation No action 14 Transmittal of city attorney billing (Aug 2023) CMO Informational No action 15 Adopt a resolution to amend the salary schedule CMO, CDD Regular Adopt resolution 16 First read and intro of zoning ordinance amendments to facilitate existing building electrification CMO, CDD Public Hearing First read/intro ordinance 17 Reso for Menlo Park Community Campus (MPCC) parking management plan CMO, PW Regular Adopt resolution 18 Staffing considerations to support Menlo Park Community Campus (MPCC) operations LCS Regular Adopt resolution 19 Select naming and/or dedications for the Menlo Park Community Campus (MPCC) facility LCS Regular Approve 20 Police department quarterly update – Q3 July 2023 - September 2023 PD Informational Receive and file 21 Accept the Stormwater Master Plan PW Consent No action 22 Agreement amendment with City Redwood City for Atherton Channel cleaning PW Consent Contract award or amend 23 Five-year resurfacing plan PW Study Session Direction to staff 24 Grant of utility easements at Menlo Park Community Campus (MPCC) PW Consent Adopt resolution 25 Presentation: San Francisquito Creek Joint Powers Authority update PW Presentation Info from staff 26 Provide direction on level of service analysis in traffic impact analysis PW Study Session Direction to staff 27 Provide direction on parking removal policy to address sight line deficiencies PW Study Session Direction to staff 28 Resolution upholding appeal of the Complete Streets Commission’s approval remove four on- street parking spaces at 660 Roble Ave. PW Consent Adopt resolution, Decide 29 Update on Vision Zero Action Plan PW Study Session Direction to staff ASD-Administrative Services CDD-Community Development PD-Police CMO- City Manager's Office LCS-Library and Community Services Page K-1.2
PW-Public Works

,.

MENLO PARK
AGENDA ITEM L-1
City Manager's Office

STAFF REPORT
City Council
Meeting Date: 9/26/2023
Staff Report Number: 23-214-CC
City Council Initiated Item: Direction on the mobile market Recommendation
Provide direction to staff on the mobile market.

Background
On Sept. 20, Vice Mayor Taylor requested an agenda item for City Council discussion on the mobile market (Attachment A).

Analysis
Pursuant to City Council Procedure #CC-20-013 (Attachment B), the City Council may discuss the item and ask staff questions regarding preliminary scope, analysis and resource requirements. After discussion, with a motion and second, the City Council may take one of the following actions:
• Direct the city manager to prioritize staff resources to prepare a formal staff report for further City Council consideration and/or action, or
• Direct the item to an advisory body for preparation of a formal staff report with no additional staff support required, or
• Direct the city manager to prepare a formal staff report for further City Council consideration as resources are available, or
• Defer action to the City Council’s annual goal setting process.

Impact on City Resources
Determined by City Council direction.

Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines §§15378 and 15061(b)(3) as it will not result in any direct or indirect physical change in the environment.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Page L-1.1

Staff Report #: 23-214-CC
Attachments
A. Vice Mayor Taylor request
B. City Council Procedure #CC-20-013
Report prepared by:

Justin I.C. Murphy, City Manager
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Page L-1.2
From: Taylor, Cecilia
To: Murphy, Justin I C
Cc: Wolosin, Jen
Subject: City Council member Agenda item request
Date: Wednesday, September 20, 2023 6:50:22 AM

ATTACHMENT A
Good day, city manager, Murphy,
I hope you’re doing well. This is a formal request to have the mobile market agendized. It is expected to end on October 29th. As far as I know, this information is not public.

Please let me know if you have any questions.

I appreciate your time.

All the best, Cecelia
Cecilia Taylor
Vice Mayor
City Hall - 2nd Floor
701 Laurel St.
tel 650-589-5073
menlopark.gov
*Note our emails have changed to @menlopark.gov
Page L-1.3

OF

MENLO PARK
Page L-1.4

CITY COUNCILMEMBER REQUESTS
City Council Policy #CC-20-013
Adopted August 25, 2020

ATTACHMENT B
Purpose
The purpose of this procedure is to provide transparency into requests by individual City Councilmembers that result in the use of staff time. The policy applies to all City Councilmembers equally and allows the full City Council to determine how to use limited city resources.

For this procedure, a “City Councilmember request” is defined as a request to use city resources in a manner that exceeds the City Council approved budget, priorities, or work plan. This includes requests directed to the city manager, city attorney, and all city staff members. This procedure also applies to City Council appointed commissions and committees.

Requests to add items to a future agenda
To make a request
To request consideration of an item at future City Council meetings, City Councilmembers may send the request via email to the city manager, with a copy to the Mayor and Vice Mayor, or via email to [email protected]. The request must be received no later than two (2) business days prior to publication of the meeting agenda. The request will automatically appear under “City Council initiated items” at the end of the City Council’s regular agenda.

Initial City Council consideration of request
As an agendized item under “City Council initiated items” the City Council may discuss the item and ask staff questions regarding preliminary scope, analysis, and resource requirements. After discussion, with a motion and second, the City Council may take one of the following actions:
 Direct the city manager to prioritize staff resources to prepare a formal staff report for further City Council consideration and/or action, or
 Direct the item to an advisory body for preparation of a formal staff report with no additional staff support required, or
 Direct the city manager to prepare a formal staff report for further City Council consideration as resources are available, or
 Defer action to the City Council’s annual goal setting process.

If the request does not receive sufficient City Council support, the item is not considered further.

City Council action
When the staff report is available, the report will be placed under “City Council initiated items” for City Council discussion and action at the next City Council meeting, regardless of agenda load management exercised by the Mayor, Vice Mayor, and city manager.

Request to modify operations or for special projects
To make a request
To request consideration of a change in operations or for a special project, a City Councilmember may send the request via email to the city manager, with a copy to the Mayor and Vice Mayor, or via email to [email protected]. The request must be received no later than two (2) business days prior to publication of the meeting agenda. The request will automatically appear under “City Council initiated items” at the end of the City Council’s regular agenda.

Initial City Council consideration of request
As an agendized item under “City Council initiated items” the City Council may discuss the item and ask the city manager the preliminary assessment of the scope, analysis, and resource requirements of the request. After discussion, with a motion and second, the City Council may take one of the following actions:
 Direct the city manager to prioritize staff resources to prepare a formal staff report for further City Council consideration and/or action, or
 Direct the city manager to prepare a formal staff report for further City Council consideration as resources are available, or
 Defer action to the City Council’s annual budget process.

If the request does not receive sufficient City Council support, the item is not considered further.

City Council action
When the staff report is available, the report will be placed under “City Council initiated items” for City Council discussion CC 20200825

2 CITY COUNCILMEMBER REQUESTS
City Council Policy #CC-20-013
Adopted August 25, 2020
and action at the next City Council meeting, regardless of agenda load management exercised by the Mayor, Vice Mayor, and city manager.

Emergency and non-agendized items
Emergency and non-agendized items may be added to an agenda only in accordance with state law. Emergency items are only those matters affecting public health or safety such as work stoppages, disasters and other severe emergencies.

Adding an emergency item requires a majority vote. Emergency items are very rare. An item that the City Council would like to act on after agenda posting is considered a non-agendized item.

Non-agendized items may be added to the agenda only if the City Council makes findings that (1) the need to consider the item arose after the posting of the agenda, and; (2) there is a need to take immediate action at this meeting of the City Council. These findings must be approved by a four-fifths vote; if less than five members of the City Council are present, the findings require a unanimous vote of those present.

Emergency and non-agendized items are not be used to bypass the City Councilmember request process above.

Procedure history
Action Date Notes
Draft procedure presented July 18, 2020 City Council continued item to August 25, 2020 Procedure adoption August 25, 2020 Draft procedure amended at City Council direction. Staff edit to clarify definition of a “non-agendized item”
Page L-1.5

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MENLO PARK
AGENDA ITEM M-1
City Manager's Office

STAFF REPORT
City Council
Meeting Date: 9/26/2023
Staff Report Number: 23-216-CC
City Council Reconsideration: Direction on the reconsideration authorizing the city manager to execute an agreement
with Team Sheeper, Inc., to operate Burgess
Pool and the future Menlo Park Community
Campus aquatics center specifically
regarding Solo Aquatics services
Recommendation
Provide direction to staff on the reconsideration authorizing the city manager to execute an agreement with Team Sheeper, Inc., to operate Burgess Pool and the future Menlo Park Community Campus (MPCC) aquatics center, specifically the City Council’s direction not to require Team Sheeper to engage Solo Aquatics for services at MPCC while requiring Solo Aquatics services at Burgess pool.

Policy Issues
The City Council’s procedures manual allows a City Councilmember of the prevailing majority to make a motion for reconsideration as follows:
“Reconsideration of an item shall be allowed in accordance with the following City Council guideline: A councilmember of the prevailing majority when the previous vote was taken must make a motion for reconsideration. The City Council has determined that any motion for reconsideration should be made at the meeting immediately following that at which the action was taken. No motion for reconsideration will be entertained after this time unless the City Council determines significant new information has arisen which warrants such action.”
Background
At the Sept. 12 City Council meeting, the City Council voted to authorize the city manager to execute an aquatics operator agreement with Team Sheeper, Inc., at Burgess Pool and the future Menlo Park Community Campus (MPCC) aquatics center, subject to several revisions and direct staff to finalize the agreement, 3-2 (Nash and Taylor dissenting).

On Sept. 21, Mayor Wolosin requested that the item be returned to the City Council for reconsideration (Attachment A).

Analysis
Pursuant to the reconsideration procedure, the City Council may discuss the item and ask staff questions.

After discussion, the City Council may take one of the following actions:
• With a motion and second, direct staff to agendize the reconsideration of authorizing the city manager to City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Page M-1.1

Staff Report #: 23-216-CC
execute an agreement with Team Sheeper, Inc., to operate Burgess Pool and the future Menlo Park Community Campus aquatics center; or
• No motion for reconsideration will be entertained.

Impact on City Resources
There is no impact on City resources.

Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines §§15378 and 15061(b)(3) as it will not result in any direct or indirect physical change in the environment.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Mayor Wolosin request
Report prepared by:

Stephen Stolte, Assistant City Manager
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Page M-1.2

Herren, Judi A
From: Wolosin, Jen
Sent:

To:

Thursday, September 21, 2023 2:22 PM
Herren, Judi A
Cc:

Subject:

Murphy, Justin I C; Stolte, Stephen W; Doherty, Nira F; Taylor, Cecilia Motion to Reconsider
Hi Judi,

ATTACHMENT A
I am writing to request that a motion to reconsider be placed on the September 26th agenda. The motion to reconsider would be to reconsider the City Council vote on the aquatics operator agreement; specifically, the Council’s direction not to require Team Sheeper to engage Solo Aquatics for services/swim team at MPCC while requiring Solo Aquatics be engaged for services/swim team at Burgess pool.

Thanks,
Jen
Jen Wolosin
Mayor
City Hall - 2nd Floor
701 Laurel St.
tel 415-710-5838
menlopark.gov
*Note our emails have changed to @menlopark.gov
1 Page M-1.3