City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Planning and Development Services
Meeting Date: May 19, 2025
Report #:2503-4400
TITLE
800/808-814 San Antonio Road [25PLN-00066]: Request for Council Prescreening to Amend an Existing Planned Community Ordinance (Ordinance 5622) to Allow the Construction of 120 Residential Units and 1,078 Square Feet Commercial Space in a Five-Story Structure on a 38,194-Square-Foot (0.87-Acre) Site. CEQA Status: Not a Project.
RECOMMENDATION
Staff recommends that Council conduct a prescreening and provide informal comments on the applicant’s request to amend Ordinance 5622 and the Associated Development Plan, rezoning the subject properties. Comments provided during the prescreening process are not binding on the City nor the applicant.
EXECUTIVE SUMMARY
This prescreening is a request by the applicant to amend Ordinance 5622 (which rezoned the subject properties at 800 and 808-814 San Antonio Road to Planned Community (PC)-5622) and the associated Approved Development Plan to allow 120 residential units and a 1,078-square- foot commercial space, where 75 residential units and a 1,078-square-foot commercial space are allowed. The proposed project would maintain an approximately the same building envelope and site plan as the Approved Development Plan, but would reduce the size of the residential units and increase the parking by extending the footprint of the garage into the building setbacks. A location map of the project site is included in Attachment A.
In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including Rezoning, prior to submittal of a formal application. Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Since this proposal may return to the City Council as a formal application, Councilmembers should refrain from forming firm opinions supporting or opposing the project.
Following this prescreening, the applicant may choose to file a formal application to amend the PC Zone District for the site. Planned Community Amendments follow the same process as the initial Planned Community Rezoning and require an initial review by the Planning and
Transportation Commission followed by a formal recommendation from the Architectural Review Board, a formal recommendation from the Planning and Transportation Commission, and Council’s final decision as set forth in PAMC Chapter 18.38.
BACKGROUND
On February 3, 2020, Council unanimously endorsed using Planned Community (also referred to herein as Planned Home Zoning [PHZ]1) for housing and mixed-use housing development projects to help spur housing production. In exchange for deviation from certain standards as allowed under the rezoning, if approved by Council, the project must include at least 20% of the housing units as deed restricted for lower income households.
Prior Entitlement
On May 6, 2024, Council approved a PHZ application to rezone the subject properties from Commercial Services (CS) to PC-5622. The Approved Ordinance and Development Plan allow 75 units and a 1,078-square-foot commercial space in an 114,888-square-foot, five story building, with 148 underground parking spaces. This included 7 one-bedroom, 52 two-bedroom, and 16 three-bedroom condominiums. Although the planning entitlement is still valid, the applicant has expressed that project as approved is no longer viable and that these modifications would be necessary to make the project viable. The approved project proposed condominiums, though the applicant has not yet submitted the required subdivision application to merge the parcels and to create the condominium units.
The approved application included the following public benefits:
•BMR units in excess of the minimum required (6 units provided at a rate affordable to very low income households, five units affordable to low income households, and 4 units affordable to moderate income households;
•Retail commercial space on the ground floor;
•Space for future expansion of bicycle and pedestrian infrastructure along San Antonio Road (including granting of an easement).
Project Description
The preliminary schematic drawings, included in Attachment F, are conceptual, as is appropriate at this stage of project consideration. As shown in these schematic drawings, the applicant is proposing an approximately 114,888-square-foot multi-family residential building with 120 residential units and 1,078 square feet of commercial space. The unit mix would include 23 studios, 41 one-bedroom, 50 two-bedroom, and six three-bedroom. Consistent with the prior project, the two parcels addressed 800 San Antonio Road and 808-814 San Antonio Road would be merged to create a 38,194-square-foot (0.87-acre) site, however, the applicant is not proposing to subdivide this project into condominiums. The development would include five stories of residential units above a two-story below grade parking garage, with a proposed 1 Referred to in this report as "Planned Home Zoning" to emphasize the focus on housing as the benefit to the community. PAMC Section 18.38, which outlines the requirement and process for Planned Community (PC) Zoning, remains the underlying code supporting application of this policy. height of 55 feet, consistent with the approved project.
A pedestrian entrance to the building would be provided from San Antonio Road. The building increases the proposed number of parking spaces from 148 spaces to 179 spaces. Access to the parking garage would continue to be provided from San Antonio Road. The prior approval included protrusions of the below grade garage beyond the footprint of the proposed building.
This project further encroaches into the setbacks on all four sides of the building, to accommodate the increase in parking spaces. This includes below-grade encroachment into the Special Setback on San Antonio Road, however the amount is not dimensioned on the plans.
Category Prior Entitlement
(Approved 2024)
Proposed Project
(Prescreening Stage)
Total Residential
Units 75 units 120 units
Unit Mix 7 one-bedroom, 52 two-bedroom, 16 three-
bedroom (all condominiums)
23 studios, 41 one-bedroom, 50 two-
bedroom, 6 three-bedroom (rentals)
Parking Spaces 148 underground spaces 179 underground spaces Parking Layout Encroachments beyond building footprint Increased encroachments on all four sides, including Special Setback
Commercial
Space 1,078 square feet 1,078 square feet
Building Height 55 feet (5 stories above 2-level garage) 55 feet (5 stories above 2-level garage)
Site Size 38,194 sf (0.87 acres), merged parcels Same
Public Benefits
- 15 BMR ownership units at various income
levels - Ground-floor retail - Easement for
future bicycle/pedestrian infrastructure
Not specified (20% at 80% AMI
required)
Setback
Encroachments
Below-grade garage protrusions only,
including within the San Antonio Road Special
Setback
Further below-grade garage
encroachments into all setbacks,
including San Antonio Road special
setback
Application
Status
Approved PHZ and zoning (PC-5622), but
subdivision map not submitted Preliminary prescreening submitted Surrounding Uses
This property is located within the boundaries of the proposed San Antonio Road Area Plan, as well as the Housing Incentive Program area. It is adjacent to the approved mixed-use project at 788 San Antonio Road (which also recently applied for a new prescreening) and the proposed project at 762 San Antonio Road to the south, as well as a Hertz car rental and the approved 824 San Antonio Road to the north. To the West, across San Antonio Road, are commercial uses within the general manufacturing (GM) Zone District, including a biomedical use, Immune-Onc Therapeutics, immediately across the street, and a multi-family residential use within a Planned Community Zone district (the Greenhouse residential development) at the intersection of Leghorn and San Antonio Road. Adjacent buildings are generally single-story buildings; however, the approved and pending residential projects vary between four and eight stories tall.
ANALYSIS
Staff will prepare a thorough analysis of the Zoning Code and Comprehensive Plan compliance upon submittal of a formal application, if filed. A review of the conceptual plans, however, summarizes staff’s preliminary review of the proposal and highlights key policy considerations associated with the applicant’s request.
Comprehensive Plan Compliance
The Comprehensive Plan designation is Service Commercial. High-density housing is identified as an allowed use in some locations within this land use designation.
The 2023-2031 Housing Element includes the 75 approved units as “Entitled Units” to demonstrate the adequacy of the Residential Sites Inventory. While the properties contributed to the City’s planned capacity to meet its Sixth Cycle RHNA obligations, no RHNA credit has been claimed, as such credit is only granted upon building permit issuance. The newly submitted application, which includes 45 additional units beyond the previous entitlement, would increase the City's available site capacity buffer.
San Antonio Road Area Plan
The San Antonio Road Area Plan was initiated by the City Council on March 10, 2025, and is scheduled to be completed in late 2027/early 2028. It is currently in the initial stages of community outreach and assessing current conditions. The plan will seek to transform 275.3 acres along the Palo Alto and Mountain View border, creating an opportunity for cohesive mixed-use neighborhoods with safe access to transportation, employment, community services, and recreation. This will be achieved by a holistic approach to the plan area, including examining allowed land uses, increasing housing capacity, and improving mobility and interconnectivity within the plan area, as well as to the San Antonio CalTrain station and city amenities such as the Cubberley Community Center and Baylands Nature Preserve. To allow the plan the maximum flexibility in designing streets, bikeways, sidewalks, and related facilities to meet the demands of existing and new residents and visitors, it is important to maintain the existing special setbacks along San Antonio Road as much as possible during this time prior to plan adoption by the City Council.
Council may consider how the pending area plan may impact this project, and vice versa. Major considerations include transportation improvements and placemaking needs within the easement area and public right of way.
Zoning Compliance
On May 6, 2024, Council approved Ordinance 5622, rezoning the subject properties from CS to PC. Therefore, the existing zoning of the parcel is PC-5622. This zone district allows for 75 multi- family residential units and a 1,078-square-foot ground floor commercial retail space. The proposed PC amendment would rezone the subject properties and the associated development plan to maintain the commercial space and allow 120 multi-family residential units. Although the floor area ratio did not increase, the density increases by 60%. Council may wish to consider if this is an appropriate density.
Attachment B includes the required development standards from the prior CS zone district and the approved PC-5622 and compares these to the proposed project.
The project proposes the same above-grade footprint and height. However the interior divides the space into more, smaller dwelling units. Because the exterior is unchanged, some units would not have the required open space. This would be a requested deviation from the approved development plan. The schematic plans show a larger portion of the roof would now be dedicated as roof deck space, however the plans to do not specify the total square footage; therefore the total square feet proposed is unclear.
Multi-Modal Access & Parking
Valley Transit Authority (VTA) bus line 21 and ACE transit orange line are the nearest bus lines to the project site. Consistency with the City’s Bicycle and Pedestrian Transportation Plan is assumed as the project is not substantially different from the prior project as it relates to street connectivity for bicyclists and pedestrians.
Parking
The building would include two levels of below-grade parking. Access to the parking garage would be provided from San Antonio Road from a single entrance/exit, consistent with the prior approval. The parking garage would include 179 stalls. Under the PC Ordinance, 148 parking spaces is required for the 75 units and 1,078 square feet of commercial space, where 144 would have otherwise been required under the CS Zoning. The proposed project includes 179 spaces where 148 spaces would be required under the previous CS and HIP Zoning.
The prior approval included protrusions of the below grade garage beyond the footprint of the proposed building. This project further encroaches on all four sides of the building, to accommodate the increase in parking spaces, however this encroachment is not dimensioned on the plan set. Staff recommends the project utilize the HIP parking requirement, as the parking garage would not require further protrusion into the San Antonio Road Special Setback.
Bicycle parking is currently shown on the ground level, adjacent to the lobby, consistent with the prior approval. The number of bike racks is increased to accommodate 120 long term spaces as required by the Zoning Code.
Refuse
The proposed plan show trash staging in the same configuration as the approved plans.
However, with the increase in units, Staff anticipates an increase in service frequency to three times a week. This would mean the bins would be out on the San Antonio Road frontage more often than under the current approval. It may be possible to increase bin size rather than increase service frequency. This would be further analyzed as a part of a formal application.
Public Benefits
The proposed project modifies the previously approved public benefits of the project. The public benefits under the new proposal would include:
•24 BMR units with an average affordability to 80% AMI; •Space for future expansion of bicycle and pedestrian infrastructure along San Antonio Road (including granting of an easement);
Inclusionary Requirement and Jobs Housing Imbalance
The intent of focusing the use of PC projects to residential and residential mixed-use is to address the job/housing imbalance. PHZ projects are required to provide more housing than jobs on site. As this is a 100% residential project, no new jobs would be created.
The approved project provided 20% of the units (15 units) at Below Market Rate in accordance with Council’s requirements for projects seeking to rezone using the PHZ process. This included six units affordable to Very-Low Income households, five units affordable to Low Income households, and four units affordable to Moderate Income households. While it is not listed formally as a public benefit, Council had noted that these units were a great opportunity for families, since it included 10 two-bedroom units and three three-bedroom units. The applicant did not provide information on how the affordability would change under the new proposal, outside of noting that the PHZ project requires 20% of the units to be provided at below market rates.
As a part of proposing additional units, the owner has expressed the intent to rent these units instead of selling them as condominiums. The owner has since expressed that they are considering all options, including rental, condo, or to do a condominium subdivision, and rent the units while preserving the right to sell at a later date. A rental project that is not subdivided is not required by code to provide BMR units on site, and could instead pay development impact fees, however the established PHZ requirements include 20% of the 120 units (24 units) be provided onsite as BMR units, per the set formula.
POLICY IMPLICATIONS
Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Therefore, informal comments from Councilmembers would not impact policy. That said, there is interest among other home builders and property owners to learn of the Council’s initial reaction to the subject request, which may influence the filing of future prescreening requests.
The San Antonio Road Area Plan is also in its initial planning stages. The projects that are pending or approved during the preparation of the plan may impact some of the policies of the plan.
FISCAL/RESOURCE IMPACT
The prescreening and processing of any formal application, if filed, are funded by applicant fees. The project would also be subject to development impact fees to offset impacts on public services and infrastructure.
STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on May 9, 2025, which is 10 days in advance of the meeting. Postcard mailing occurred on May 7, 2025, which is 12 days in advance of the meeting.
As of the writing of this report, one project-related public comment was received (Attachment E). In it, the resident expressed disappointment that the project was changing from ownership to rental.
ENVIRONMENTAL REVIEW
The prescreening is a preliminary review process in which Councilmembers may provide comment, but no formal action will be taken. Therefore, no review under the California Environmental Quality Action (CEQA) is required at this time. A full review in accordance with CEQA would be initiated with the formal filing of a development application.
ATTACHMENTS
Attachment A: Location Map
Attachment B: Zoning Comparison
Attachment C: Approved PC Ordinance 5622
Attachment D: Public Comments
Attachment E: Applicant’s Description Letter
Attachment F: Project Plans
APPROVED BY:
Jonathan Lait, Planning and Development Services Director