*NOT YET APPROVED*
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Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Located at 70 Encina Avenue from Service Commercial (CS) Zone to Planned Community Zone (PC)
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations.
(a) On March 24, 2024, Hayes Group Architecture (“Applicant”) submitted an application for Rezoning to Planned Community/Planned Home Zoning (PHZ) and Major Architectural Review to redevelop the site at 70 Encina Avenue (the “Subject Property,” more particularly described in Exhibit A) with ten condominium units, two of which would be below market rate (the “Project”).
(b) Following Staff Review, the Planning and Transportation Commission (Commission) reviewed the project on September 11, 2024 and recommended the project to the Architectural Review Board.
(c) The Architectural Review Board reviewed the project on November 7, 2024 and, following preparation of the environmental analysis, formally recommended approval of the project to the City Council on February 6, 2025.
(d) The Planning and Transportation Commission reviewed the project on February 26, 2025; and recommended approval of the project to the City Council. (e) Approval of the Planned Community Project would constitute a project under the provisions of the California Environmental Quality Act of 1970, together with related state and local implementation guidelines promulgated thereunder (“CEQA”). (f) The City is the Lead Agency pursuant to Public Resources Code section 21067 as it has the principal responsibility to approve and regulate the Planned Community Project. (g) The City, in compliance with CEQA, determined that the project is eligible for streamlined review in accordance with CEQA Guidelines Section 15183. The City prepared an analysis of the project in accordance with CEQA Guidelines Section 15183, which evaluated the project’s consistency with the Comprehensive Plan and the Comprehensive Plan EIR, including relevant addenda. Plan level technical reports were prepared to confirm that the Comprehensive Plan EIR, including any mitigation required through that EIR, would adequately address the impacts of the proposed project. (h) The Council is the decision-making body for approval of the Planned Community Project. *NOT YET APPROVED*
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(i) The site is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow the proposed development. Specifically, the project proposes family- serving, ownership housing units. The existing CS zoning requires ground-floor retail and limits the square footage for residential uses to a floor area ratio of no more than 0.35 to
1. The limitation on residential housing uses and development standards was intended to apply to the shopping center, of which this site was previously a leased part. The site is zoned and designated as part of the shopping center but is no longer leased by the Town & Country Village shopping center owner and is part of a separate, adjacent parcel. In order to provide an exclusively multi-family use on this site and to achieve a floor area, lot coverage and setbacks that allow for development of the project as proposed, the proposed rezoning is necessary.
(j) Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts, as set forth in Section 6 of this ordinance. (k) The use or uses permitted, and the site development regulations applicable within the district are consistent with the Palo Alto Comprehensive plan and compatible with existing and potential uses on adjoining sites or within the general vicinity, as set forth in the Record of Land Use Action (Exhibit B) accompanying this ordinance.
SECTION 2. Amendment of Zoning Map.
Section 18.08.040 of the Palo Alto Municipal Code, the “Zoning Map,” is hereby amended by changing the zoning of Subject Property from Service Commercial (CS) to “Planned Community Zone (PC) _____”.
SECTION 3. Project Description.
The Project as a whole is described in the Development Plan, titled “Encina Housing 70 Encina Avenue, Palo Alto, CA 94301” and uploaded to the Palo Alto Online Permitting Services Citizen Portal on February 19, 2025. With respect to the Subject Property, the project comprises the uses included in this Ordinance, depicted on the Development Plans, incorporated by reference, including the following components:
(a) Redevelopment of an existing surface parking area, as described in more detail in the Development Plan, to allow construction of a new 3-story, 19,035 sf building (1.57 FAR); to include ten (10) residential condominium units organized around a common access court that provides both vehicular and pedestrian access and site improvements. Two of the proposed units will be deed restricted to be sold at a rate affordable to households earning 80-100% of area median income.
(b) Merger of two existing lots and subdivision into ten (10) residential condominium units through a subdivision map, which will be filed at a later date. *NOT YET APPROVED*
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SECTION 4. Land Uses.
(a) The following land uses shall be permitted:
(1) Multi-family residential;
(2) Accessory Uses.
SECTION 5. Site Development Regulations and Development Schedule. (a) Development Standards:
Development standards for the Subject Property shall be those conforming to the Development Plans.
(b) Parking and Loading Requirements:
The Owner shall provide parking and loading as set forth in the Development Plan. Specifically, the Owner shall provide four units with 1 space per unit and six units with 2 spaces per unit, for a total of 16 parking spaces.
(c) Modifications to the Development Plan, Land Uses and Site Development Regulations:
Once the project has been constructed consistent with the approved Development Plan, any modifications to the exterior design of the Development Plan or any new construction not specifically permitted by the Development Plan or the site development regulations contained in Section 5 (a) – (b) above shall require an amendment to this Planned Community zone. Any use not specifically permitted by this ordinance shall require an amendment to the PC ordinance, as required by Palo Alto Municipal Code 18.38.050.
(g) Development Schedule:
The project is required to include a Development Schedule pursuant to PAMC §18.38.100. The applicant has indicated that development is anticipated to begin in October 2025 and conclude in December 2026.
Notwithstanding the above, construction of the project shall commence within two years of the effective date of this ordinance. Prior to expiration of this timeline, the Owner may seek a one year extension from the Director of Planning and Development Services. All construction and development of the project shall be complete within 3 years of the start of construction.
SECTION 6. Public Benefits.
(a) Public Benefits
*NOT YET APPROVED*
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Development of the Project Site under the provisions of the PC Planned Community District will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts.
The public benefit provided by the Project is two dwelling units at below market rates (“BMR”), affordable to households with income not exceeding 80% of area median income. This exceeds the base requirement in Palo Alto Municipal Code Chapter 16.65, which would require one BMR unit and the payment of in-lieu fees.
SECTION 7. Environmental Review
The City prepared an analysis of the project in accordance with CEQA Guidelines Section 15183 and confirmed that the Comprehensive Plan EIR, including any mitigation that would be addressed as required through that EIR, would adequately address the impacts of the proposed project.
SECTION 8. Effective Date
This ordinance shall be effective on the thirty-first day after the date of its adoption (second reading).
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
__________________________
City Clerk
APPROVED AS TO FORM:
__________________________
Assistant City Attorney
_________________________
Mayor
_________________________
City Manager
__________________________
Director of Planning and
Development Services
*NOT YET APPROVED*
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Exhibit A Plan and Legal Description
Order Number: NCS-1218310-SC
Page Number: 7
First American Title Insurance Company
LEGAL DESCRIPTION
Real property in the City of Palo Alto, County of Santa Clara, State of California, described as follows:
PARCEL ONE:
BEGINNING AT A POINT ON THE NORTHEASTERLY LINE OF THE SAN FRANCISCO AND SAN JOSE ROAD,
STATE HIGHWAY, SAID LINE BEING THE NORTHEASTERLY LINE OF THAT CERTAIN STRIP OF LAND CONVEYED BY ELIZA J. GREER TO THE CITY OF PALO ALTO, BY DEED DATED SEPTEMBER 15, 1926 AND RECORDED SEPTEMBER 16, 1926 IN BOOK 272, PAGE 54, OFFICIAL RECORDS; WHERE THE SAME
IS INTERSECTED BY THE SOUTHEASTERLY LINE OF THE GREER HOMESTEAD IN THE RANCHO RINCONADA DE ARROYO DE SAN FRANCISQUITO, SET OFF TO THE ESTATE OF ROBERT L. GREER,
DECEASED, ACCORDING TO THE MAP THEREOF OF RECORD IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, IN BOOK L OF MAPS, PAGE 79; THENCE RUNNING SOUTH 42° 30' EAST AND ALONG THE PRESENT NORTHEASTERLY LINE OF SAID
HIGHWAY, AND ALONG THE NORTHEASTERLY LINE OF SAID STRIP OF LAND SO CONVEYED TO THE CITY OF PALO ALTO, 531.50 FEET AND SOUTH 72° 33' EAST 20.01 FEET TO THE NORTHWESTERLY
LINE OF THE EMBARCADERO ROAD, AND THE NORTHWESTERLY LINE OF THE LAND SO CONVEYED TO THE CITY OF PALO ALTO; THENCE RUNNING NORTH 70° 10' EAST AND ALONG SAID LINE, 1021.37 FEET TO A POINT ON THE SOUTHWESTERLY LINE OF THAT CERTAIN 25 FOOT STRIP OF LAND
CONVEYED BY ELIZA JANE GREER, ET AL, TO SOUTHERN PACIFIC RAILROAD COMPANY, A CORPORATION, BY DEED DATED NOVEMBER 19, 1901, RECORDED NOVEMBER 21, 1901 IN BOOK 246 OF DEEDS, PAGE 240, RECORDS OF SAID COUNTY OF SANTA CLARA; THENCE LEAVING SAID LINE OF EMBARCADERO ROAD, AND RUNNING NORTH 51° 45' WEST ALONG THE SOUTHWESTERLY LINE OF SAID 25 FOOT STRIP OF LAND 581 FEET, MORE OR LESS, TO A POINT ON THE SOUTHEASTERLY LINE OF LANDS SHOWN ON THE MAP OF THE GREER HOMESTEAD, HEREINABOVE REFERRED TO; THENCE LEAVING SAID 25 FOOT STRIP OF LAND AND RUNNING ALONG THE SOUTHEASTERLY LINE OF SAID GREER HOMESTEAD, SOUTH 70° 47' WEST 934.69 FEET TO THE POINT OF BEGINNING.
A PORTION OF THE 32 1/2 ACRE TRACT SHOWN ON THAT CERTAIN MAP ENTITLED "PLAT OF A TRACT OF LAND ON THE SAN FRANCISQUITO RANCHO, OWNED BY CAPT. JOHN GREER", WHICH MAP WAS FILED FOR RECORD ON MARCH 14, 1878 IN BOOK A OF MAPS, PAGE 23, SANTA CLARA COUNTY RECORDS.
PARCEL TWO:
BEING A SUMMARY VACATION OF REAL PROPERTY IN THE CITY OF PALO ALTO, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
BEGINNING AT THE MOST EASTERLY CORNER OF PARCEL ONE, AS DESCRIBED IN THE TRUST TRANSFER DEED RECORDED MARCH 28, 2007, DOCUMENT NO. 19362067, SANTA CLARA COUNTY;
THENCE SOUTH 70° 10' 00" WEST, ALONG THE SOUTHEASTERLY LINE OF SAID PARCEL ONE, A DISTANCE OF 336.77 FEET;
THENCE SOUTH 51° 45' 00" EAST, 32.22 FEET;
THENCE NORTH 70° 10' 00" EAST, A DISTANCE OF 306.51 FEET;
THENCE NORTH 38° 15' 00" EAST, A DISTANCE OF 25.69 FEET TO AN INTERSECTION WITH THE SOUTHWESTERLY LINE OF THE PENINSULA CORRIDOR JOINT POWERS BOARD RIGHT-OF-WAY;
Order Number: NCS-1218310-SC
Page Number: 8
First American Title Insurance Company
THENCE NORTH 51° 45' 00" WEST, ALONG SOUTHWESTERLY RIGHT-OF-WAY LINE, A LINE DISTANCE OF 16.22 FEET TO THE POINT OF BEGINNING.
APN: 120-34-015
*NOT YET APPROVED*
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Exhibit B Record of Land Use Action