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Item 5 Staff Report

Palo Alto City Council
September 29, 2025

Document
Item 5 Staff Report
Meeting
September 29, 2025
Body
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: September 29, 2025
Report #:2506-4882
TITLE
PUBLIC HEARING / QUASI-JUDICIAL. 70 Encina Avenue [25PLN-00034]: Request for Approval of a Tentative Map to Merge Two Lots and Allow for a Condominium Subdivision to Create 10 Units on the Resulting 12,119-Square-Foot Parcel. The Subdivision Map Would Facilitate Construction of Ten New Residential Units in One Building, which was previously approved on April 14, 2025 (24PLN-00095). CEQA Status: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15183 (Comprehensive Plan Consistency). Zoning District: PC-5654.

RECOMMENDATION
Staff recommends the City Council take the following actions:

1. Consider the project exempt from CEQA in accordance with CEQA Guidelines Section 15183 (Comprehensive Plan Consistency) as documented in Attachment C; and

2. Approve the Tentative Map based on findings and subject to conditions of approval in the Draft Record of Land Use Action (RLUA) in Attachment B.

EXECUTIVE SUMMARY
The applicant requests approval of a Tentative Map1 to merge two contiguous parcels, located at 70 Encina Avenue (APN 120-34-006) and on an adjacent unaddressed parcel (APN 120-34- 007), and for a condominium subdivision to allow 10 residential condominium units on the resulting, 12,119-square-foot parcel. The Planning and Transportation Commission (PTC) unanimously recommended approval on August 27, 2025.

Council previously approved rezoning of the two parcels and construction of a 10-unit residential condominium project through the Planned Home Zoning/Planned Community 1 Tentative Map: https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/new- development-projects/70-encina/september-29-2025-council-tentative-map.pdf

process set forth in Palo Alto Municipal Code (PAMC) Chapter 18.38.2 Two of the approved units will be provided at below market rate and made affordable to households making 80% of Area Median Income or below.

BACKGROUND
The project includes a request for a Tentative Map to merge two contiguous parcels located at 70 Encina Avenue (APN 120-34-006) and on an adjacent unaddressed parcel (APN 120-34-007), and for a condominium subdivision to allow ten residential condominium units on the resulting, 12,119-square-foot parcel.

Requested Entitlements, Findings and Purview
The applicant requests approval of a tentative map, which is subject to City Council approval.

The process for evaluating this type of application is set forth in Title 21 of the Palo Alto Municipal Code (PAMC) and California Government Code 66474, and application approval is outlined PAMC Sections 21.12.010 and 21.13.020. Tentative maps require PTC and Council review. The PTC reviews whether the amended subdivision is consistent with the Subdivision Map Act (in particular, Government Code 66474), Title 21 of the Palo Alto Municipal Code, the Palo Alto Comprehensive Plan, and other applicable provisions of the PAMC and State Law. The PTC’s recommendation is forwarded to the City Council for final approval. The Council decision is final.

Prior City Reviews & Action
The proposed subdivision map was reviewed and unanimously recommended for approval by the PTC on August 27, 2025, with minor modifications that were incorporated into the Record of Land Use Action.3 Additionally, the proposed site improvements associated with the map were approved by City Council on April 14, 2025.4

ANALYSIS
The proposed project and relevant discussion and findings herein reflect the Tentative Map.

The City Council previously approved the proposed site improvements associated with this condominium subdivision.

Neighborhood Setting and Character
This property consists of two parcels located within the Town and County Village Shopping Center (Town & Country), but that are not owned or leased by Town & Country. The sites were 2 Ordinance 5645 and Record of Land Use Action 2025-03 is available online at:
https://portal.laserfiche.com/Portal/DocView.aspx?id=183879&repo=r-704298fc 3 Planning and Transportation Commission Staff Report, August 27, 2025, Item 2:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16575 4 City Council Staff Report, April 14, 2025, Item 12:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16036 previously leased by Ellis Partners, the owner of Town & Country, and provided parking for that site. Adjacent zoning and uses include Town & Country and its associated parking areas to the south, east, and west. The portion of Town & Country adjacent to the site is mostly developed with one-story structures, though the building height increases to two stories towards the eastern side of the building. To the north, across Encina Avenue, are CS zoned office buildings and further down the street is the LifeMoves Opportunity Center. The offices are one- and two- story buildings. The Opportunity Center is five stories.

Consistency with the Comprehensive Plan, Area Plans, and Guidelines5 The proposed Tentative Map is consistent with the Comprehensive Plan. The site is designated as the “Regional/Community Commercial” land use designation, which allows for multi-family residential uses. The site is also identified as a Housing Inventory Site in the Housing Element; therefore, development of the site with multi-family residential use is appropriate and consistent with the Housing Element, as discussed further below. The map facilitates the redevelopment of a parcel within the City’s urban service area which is consistent Policy L-1.2 of the Comprehensive Plan. The associated development to be constructed on the lot would add new residential units that contribute to the housing inventory including two affordable housing units, consistent with Goal 2 of the Housing Element, which states “assist in the provision of safe, attainable, and sustainable housing, especially affordable housing, to meet the needs of all economic segments of the community.” Consistencies with other Comprehensive Plan policies are included in Attachment B.

Housing Element
70 Encina Avenue is a Housing Inventory Site (HIS) in the City’s adopted Housing Element. This parcel has a projected capacity of five units where five units is effectively proposed, as it is one half of the total site. The proposed 10 units exceeds the anticipated capacity and therefore contributes more than what was planned toward the City’s Regional Housing Needs Allocation.

Zoning Compliance6
The site is zoned PC-5654 (Planned Community, Ordinance 5654) and is zoned specifically for the proposed project. The size of the project site would not change and is consistent with code requirements for the zoning district, which has no minimum lot size requirements. The proposed density is also the same as approved for the PC zoning. Therefore, staff finds that the proposed Tentative Map complies with the code requirements.

Consistency with Application Findings
As detailed in Attachment B, this project meets all required findings for a Tentative Map and facilitates development of a housing development project that is consistent with the City’s regulations, goals, and policies.

5 The Palo Alto Comprehensive Plan is available online: bit.ly/PACompPlan2030 6 The Palo Alto Zoning Code is available online: bit.ly/PAZoningCode

FISCAL/RESOURCE IMPACT
The developer would be required to pay all applicable development impact fees estimated to total $764,578.5 for the proposed improvements, plus the applicable public art fees, as documented in Condition of Approval #6 in Attachment B and detailed further in Condition of Approval #16 in Record of Land Use Action 2025-03.

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 September 19, 2025, which is 10 days in advance of the meeting. Postcard mailing occurred on September 17, 2025, which is 12 days in advance of the meeting.

Public Comments
As of the writing of this report, no project-related, written public comments were received related to the Tentative Map. Three members of the public spoke at the PTC meeting, including identifying a minor discrepancy in the draft RLUA that was incorporated into the corrections recommended in the PTC motion.

Additionally, Ellis Partners provided numerous comments on the Planned Community Rezoning application, particularly related to the relationship of the project in the context of the shopping center. Council considered those comments in making a determination on approval of the proposed development application.

ENVIRONMENTAL REVIEW
The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the proposed Tentative Map is exempt from CEQA in accordance with CEQA Guidelines Section 15183 (Comprehensive Plan Consistency). A link to the exemption documentation is available in Attachment D.

ATTACHMENTS
Attachment A: Location Map
Attachment B: Draft Record of Land Use Action
Attachment C: Project Plans and Environmental Analysis
APPROVED BY:

Jonathan Lait, Planning and Development Services Director

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