*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 511 Byron St, 660 University Ave, and 680 University Ave/500 Middlefield Rd from RM-20 Low Density Multiple-Family Residential (RM-20) to Planned Community (PC)
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations.
(a) On December 21, 2021, Lund Smith of Smith Development (“Applicant”) submitted an application for Rezoning to Planned Community/Planned Home Zoning (PHZ) to deconstruct two existing medical office buildings (9,216 square feet) and redevelop the site at 511 Byron St, 660 University Ave, and 680 University Ave/500 Middlefield Rd (the “Subject Property,” more particularly described in Exhibit A) with a residential mixed use development. Following several revisions, the project includes a new six-story mixed-use building with 66 multi-family residential units and 1,984 square feet of commercial office space, plus ground floor resident common space, an office lobby, and a fitness area for residents and office tenants. The 66 units include 19 studios, 39 one-bedroom and eight two-bedroom units and a two level below-grade parking garage. This project also includes a Request for a Comprehensive Plan Amendment to allow commercial use to replace existing medical office in the Multiple Family Residential Land Use Designation. (the “Project”). The applicant proposes to merge the three existing lots at the Subject Property through a separate application.
(b) Following Staff Review, the Planning and Transportation Commission (“PTC” or “Commission”) reviewed the project on November 16, 2022 and forwarded the project to the Architectural Review Board.
(c) The Architectural Review Board (“ARB” or “Board”) initially reviewed the project on December 1, 2022 and, following applicant modifications, reviewed the project again on April 18, 2024 and recommended approval of the project to the City Council. (d) Following the ARB’s April 2024 recommendation, the applicant again made modifications to the plans. The ARB reviewed further revised plans on December 5, 2024 and recommended approval of the project to the City Council. (e) The PTC reviewed the revised project on March 12, 2025; and continued the hearing to date uncertain.
(f) Following the PTC’s March 2025 hearing, the applicant made substantial modifications to the plans. The ARB again reviewed further revised plans on August 21, 2025 and recommended approval of the project to the City Council. *NOT YET APPROVED*
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(g) The PTC reviewed the revised project on October 8, 2025 and recommended approval of the project to the City Council with conditions.
(h) 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”). (i) 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. (j) The City, in compliance with CEQA, prepared a Draft Environmental Impact Report for the project. The Draft EIR was circulated for public review from April 2, 2024 to May 17, 2024.
The Draft EIR found there are no significant and unavoidable environmental impacts. A response to comments and Final EIR, published in March 2025, maintained there are no significant and unavoidable impacts associated with the revisions made to the design. A revised Final EIR, published in September 2025, did not result in any change to these conclusions. (k) The Council is the decision-making body for approval of the Planned Community Project. (l) 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 mixed use development with a XXX FAR and a 73.6 foot height, setbacks ranging from zero to sixteen feet, reduced open space and a parking reduction in excess of what is permitted by code. The existing RM-20 zoning does not allow the proposed commercial use and no other existing zoning district would permit the project as proposed. In order to provide the floor area, lot coverage, setbacks, and other standards that allow for development of the project as proposed, a planned community rezoning is necessary.
(m) 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. (n) The use or uses permitted, and the site development regulations applicable within the district are consistent with the Palo Alto Comprehensive plan, as amended, 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 Low Density Multiple-Family Residential (RM-20) to “Planned Community Zone (PC) _____”.
SECTION 3. Project Description.
*NOT YET APPROVED*
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The Project as a whole is described in the Development Plan, titled “660 University Avenue, Palo Alto, CA” and uploaded to the Palo Alto Online Permitting Services Citizen Portal on October 22, 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 the Subject Property, as described in more detail in the Development Plan, including deconstruction of two existing medical office buildings, and construction of a new six-story mixed- use building with 70 residential rental units, approximately 1,984 square feet of office, and a two level below-grade parking garage. Fourteen of the proposed residential units will be deed restricted to be rented at below market rates as follows:
Studio Unit One Bedroom Two Bedroom
Extremely Low
Income
Very Low Income 1 1
Low Income 2 2 1
Moderate Income 1 4 1
Totals 4 7 2
(b) Merger of three existing lots through a separate application.
SECTION 4. Land Uses
(a) The following land uses shall be permitted:
(1) Multi-family residential;
(2) Up to 1,984 square feet, as depicted in the project plans, of office uses and neighborhood-serving uses, as defined in Palo Alto Municipal Code Section
18.16.030;
(3) Accessory facilities and uses customarily incidental to permitted 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:
*NOT YET APPROVED*
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The Owner shall provide parking and loading as set forth in the Development Plan. Specifically, the Owner shall provide 78 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 June 2027 and conclude in May 2028.
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
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 fourteen dwelling units at below market rates as further described in Section 3. This exceeds the base requirement in Palo Alto Municipal Code Chapter 16.65 and the onsite rental requirement set forth in Ordinance 5623, Section 3.
SECTION 7. Environmental Review
The City, in compliance with CEQA, prepared a Draft Environmental Impact Report for the project.
The Draft EIR was circulated for public review from April 2, 2024 to May 17, 2024. The Draft EIR found there are no significant and unavoidable environmental impacts. A response to comments and Revised Final EIR published October 1, 2025 maintained there are no significant and unavoidable impacts associated with the revisions made to the design.
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*NOT YET APPROVED*
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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 Legal Description
REAL PROPERTY IN THE CITY OF PALO ALTO, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
Parcel 1:
All of Lots 59 and 60, and the Southwesterly 9 feet, front and rear measurements of lot 58, as shown on the map of MAP OF NELSON J. BIRD'S SUBDIVISION OF BLOCK 42, UNIVERSITY PARK (NOW PALO ALTO), which map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, November 23, 1889 in Book D of Maps, Page 149.
Parcel 2:
All of Lots 56 and 57, and the Northeasterly 16 feet, front and rear measurements of lot 58, as shown on the MAP OF NELSON J. BIRD'S SUBDIVISION OF BLOCK 42, UNIVERSITY PARK (NOW PALO ALTO), which map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, November 23, 1889 in Book D of Maps, Page 149.
Parcel 3:
Lots 52, 53, 54 and 55, MAP OF NELSON J. BIRD'S SUBDIVISION OF BLOCK 42, UNIVERSITY PARK, filed November 23, 1889 in Book D of Maps, Page 149, Santa Clara County Records.
APN: 120-03-042 (Affects Parcel 1); 120-03-043 (Affects Parcel 2); and 120-03-044 (Affects Parcel 3)
*NOT YET APPROVED*
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Exhibit B Record of Land Use Action