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Item 5 Staff Report

Palo Alto City Council
December 11, 2023

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Item 5 Staff Report
Meeting
December 11, 2023
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Palo Alto City Council
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Text extracted from the city's file for reading and search. Open the original on cityofpaloalto.primegov.com. That file is the official record.

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: December 11, 2023
Report #:2311-2283
TITLE
Adoption of an Urgency Ordinance and an Interim Ordinance That Allows the Director of Planning and Development Services to Extend Planning Entitlements for Housing Development Projects up to an Additional 18 Months. Environmental Review: Exempt from CEQA in Accordance with CEQA Guidelines 15061(b)(3).

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt an urgency ordinance (Attachment A) that would be effective immediately and allow the director of planning and development services to extend expiring housing- related planning entitlements up to 18 months.

2. Adopt an interim ordinance (Attachment B) that would replace the urgency ordinance after 45 days, granting this authority through calendar year 2024.

BACKGROUND
The director of planning and development services requests Council authorization to extend housing development planning entitlements up to an additional 18 months. This request is made to address two known projects representing 105 housing units that are set to expire in December 2023 and January 2024. The City is relying on these projects in part to meet its regional housing needs assessment and they are identified as qualifying pipeline projects in the Housing Element. While expiration of the planning entitlements would not foreclose the opportunity for the City to continue to apply these sites in the Housing Element, the need to re- entitle the projects may delay housing production. The authority granted by these ordinances would expire on December 31, 2024.

Staff presented the subject recommendation to the Policy and Services Committee on November 14, 2023.1 The Committee endorsed the recommendation 3-0, with a slight 1 Staff Report, dated November 14, 2023:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=3386&meetingTemplateType=2&comp iledMeetingDocumentId=8402.

adjustment to eliminate a reference that the authorization would sunset when the state housing and community development department certified the City's housing element. This reference was found to be unnecessary and removed from the ordinance. Because the Committee was unanimous in its recommendation and due to the time constraints associated with the pending entitlements, staff is placing the first reading ordinance on the Consent Calendar. Three members of the City Council may choose to pull the matter from the agenda in accordance with the City Council’s procedures and protocols handbook, if found to be necessary.

ANALYSIS
Staff are aware of two housing projects that have pending planning entitlements about to lapse. One project is located at 3585 El Camino Real (3 units) and another at 788 San Antonio Road (102 units), which expire in December and January, respectively. Staff received one letter from a property owner’s representative detailing one of these circumstances (Attachment C). In these instances, if an extension is not granted, 105 housing units may expire. An expired entitlement would not preclude the owners from seeking a new housing development but it would impose additional time and costs to secure another planning approval.

Planning permits and approvals typically expire within 12 months, or within the time provided in the permit or approval. The planning and development services director is already authorized to extend this time for up to 12 additional months. The proposed ordinance would allow an additional 18-month extension. For qualifying housing projects that have not already received a 12-month extension, a total of 30 months could be authorized (12+18 months) while the temporary ordinance is effective.

The attached urgency ordinance would become effective immediately upon adoption by the City Council and is valid for only 45 days. Its passage would enable the planning director to extend the project entitlements before they expire. The second, interim ordinance would become effective 30 days after the second reading and as proposed, would expire at the end of calendar year 2024.

The ordinances only apply to housing projects with two-thirds or more floor area dedicated toward residential uses.

FISCAL/RESOURCE IMPACT
The recommendation in this report does not have any significant fiscal or resource impacts.

STAKEHOLDER ENGAGEMENT
Notice of the ordinance will be made available online, posted on the public noticing kiosk at King Plaza, City Hall, and published in the Daily Post at least 10 days in advance of the meeting.

ENVIRONMENTAL REVIEW
The recommendation in this report is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections 15061(b)(3) because it can be seen with certainty that the proposed action would not have the potential for causing an impact on the environment.

ATTACHMENTS
Attachment A: Urgency Ordinance Authorizing Extensions for Housing Attachment B: Ordinance Authorizing Extensions for Housing Projects Attachment C: Property Owner Representative Letter Regarding 788 San Antonio Road APPROVED BY:

Jonathan Lait, Planning and Development Services Director

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