City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: November 17, 2025
Report #:2510-5309
TITLE
QUASI-JUDICIAL. 3200 Park/340 Portage: Final Map and Street Naming [25PLN-00104]: Request for a Final Map to Merge and Subdivide 11 Existing Parcels Totaling Approximately 14.65 Acres To Create Five Resulting Parcels, Consistent with the Approved Development Agreement and to Name the New Private Streets and Rename Portage Avenue. Authorization for the City Manager to Take All Actions Necessary to Acquire a 3.25 Acre Parcel by Grant Deed. Zone District: The Site Has a Split Zoning Designation of Five Planned Community Zone Districts Where Each Zone District Aligns with the Resulting Parcels (PC 5596, PC 5597, PC 5598, PC 5599, PC 5600). CEQA Status: Council adopted resolution 10123 certifying the EIR for the project on September 12, 2023 (SCH # 2021120444).
RECOMMENDATION
Staff recommends that City Council:
1. Approve Phase 1 of the final subdivision map (Attachment B), consistent with the approved Vesting Tentative Map, for the previously approved project at 320 Acacia Avenue, pursuant to Palo Alto Municipal Code (PAMC) Section 21.16 and the Subdivision Map Act;
2. Approve the private street names Bayside Lane, Precita Lane, and Thomas Foon Chew Avenue recommended by the Palo Alto Historical Association (PAHA) for the three new private streets as shown on the Final Map;
3. Adopt the Resolution in Attachment D Approving the renaming of Portage Avenue to Thomas Foon Chew Avenue, consistent with Council’s motion to approve the project and with PAHA’s recommendation; and
4. Authorize the City Manager or their designee to take all actions necessary, including negotiating and executing a memorandum in substantially the form provided in Attachment C, to acquire the BMR/Parkland Parcel (as detailed in the Development Agreement) by grant deed.
EXECUTIVE SUMMARY
The applicant requests approval of a final map to merge 11 existing parcels totaling 14.65 acres and to subdivide those parcels into five resulting lots consistent with the approved Development Agreement adopted in accordance with Ordinance 5595.1 The final map also includes the street names for the proposed private streets shown on this map. The Resolution in Attachment D also renames the Portage Avenue to Thomas Foon Chew Avenue in accordance with Council’s motion on September 12, 2025, and Vesting Tentative Map Condition of Approval 5 set forth in Section 7 of Record of Land Use Action 2023-03 (Attachment A). This street name would continue through the proposed private street to Park Boulevard.
The Development Agreement contemplates that the final map will include an offer to dedicate a 3.25-acre parcel to the City. Upon further consideration, the applicant and City staff believe it would be mutually advantageous for the applicant to transfer the parcel to the City by grant deed. The parties have prepared a memorandum (Attachment C) that would facilitate this transfer.
BACKGROUND
In September 2023, Council approved the Development Agreement between the City and Sobrato Organization, subsequently re-designating the Comprehensive Plan land use designation, rezoning the site into five Planned Community Zone Districts based on the boundaries of the resulting parcels set forth in the Vesting Tentative Map, and approving the Vesting Tentative Map in accordance with Record of Land Use Action 2023-03 in Attachment A.
Development Agreement Construction Status Update
Exhibit C of the Development Agreement1 sets forth a detailed schedule of the parties’ obligations and the remedies available in the event of a breach of the agreement. The Development Agreement set forth the construction of the project in the following general phases:
1. Construction of the parking garage.
2. Demolition of the portion of the cannery necessary to accommodate the townhomes.
3. Recordation of a final map creating five new parcels and offering to dedicate the BMR/Parkland parcel to the City.
4. Construction of the townhomes.
In July 2024, Sobrato began construction of the project. Sobrato recently completed construction of the parking garage and has completed demolition of the portion of the former cannery building (3200 Park Boulevard) and adjacent standalone building (3040 Park Boulevard) necessary to accommodate the future townhomes. Construction of the site improvements 1 Ordinance 5595 is available online at: https://portal.laserfiche.com/Portal/DocView.aspx?id=68711&repo=r- 704298fc
(streets, sidewalks, bioswales, and remodel of the remaining cannery building are ongoing and expected to be complete before the end of 2025). The project is currently in Phase 3 and the Final map recordation will allow for the conveyance of the ”BMR/Parkland Dedication Parcel” to the City and for the “Townhome Parcel” to be sold to a perspective housing developer.
Final Map Application and Process
On April 21, 2025, Sobrato Organization filed a Final Map application. The Final Map application is the second of a two-part subdivision mapping process, which follows approval of the Vesting Tentative Map. As detailed in the Development Agreement, the Final Map process will be completed in two phases. This first phase includes merging and subdividing 11 existing parcels (including one grant deed) totaling 14.65 acres to create five resulting parcels, consistent with the approved Vesting Tentative Map and Development Agreement. The second phase of the Final Parcel Map is anticipated to return to Council in 2026 and will include the condominium subdivision of the resulting Townhome Parcel as well as dedication of the streets internal to the townhome parcel.
The Final Map is the official, legal document that is recorded with the County that establishes the property lines, streets, and easements within the subdivision. The Final Map must be prepared under the direction of a registered civil engineer or a licensed land surveyor and be based on a survey. Approval of a Final Map is ministerial if the Final Map is in substantive compliance with the approved Vesting Tentative map and the subdivider has satisfied the conditions of approval attached to the tentative map. While many cities delegate approval of the Final Map to the City Engineer, under PAMC Section 21.16.240, the Palo Alto City Council is responsible for the approval.
Public and Private Access Easements
In accordance with Mitigation Measure T-1 (MM T-1) in the adopted Environmental Impact Report (Attachment B), the project is required to dedicate a public access easement over Private Street B, connecting Portage Avenue through to Park Boulevard. This first phase of the Final Map includes recordation of that public access easement in addition to other relevant private ingress/egress easements and utility easements between the resulting properties. In accordance with the approved Planned Community Development Plans and MM T-1, Sobrato is also in the process of constructing a two-way bicycle/pedestrian pathway on the southeast side of Private Street B (Thomas Foon Chew Avenue) and within the Public Access easement so that vehicles, bicyclists and pedestrians all have a safe means of access through this site, providing a complete streets connection between Ash Street and Park Boulevard in accordance with the North Ventura Coordinated Area Plan.
ANALYSIS
The Final Map is the document containing the statements, acknowledgements, and agreements from the property owner, surveyor, City officials and beneficiaries that the Final Map is in conformance with all applicable regulations and the approved Vesting Tentative Map. The proposed subdivision includes private streets and related easements for vehicular access between parcels, utility easements, and the required public access easement.
In accordance with City’s Street Naming policy (Resolution 57393) and Condition of Approval 5 in Section 7 of the approved Record of Land Use Action for the project (Attachment A), the Palo Alto Street Naming Committee selected, and the Palo Alto Historical Association (PAHA) board voted on proposed street names for the new private streets. The proposed street names for the project site are Bayside Lane (Street A), Thomas Foon Chew Avenue (Street B), and Precita Lane (Street C). These recommended names are now forwarded to Council for approval, as reflected on the Final Map.
PAHA recommended the names for Street A (Bayside Avenue) and C (Precita Lane) to reflect the historic Bayside Cannery on this property and to honor Thomas Foon Chew’s father, Sai Yin Chew’s cannery, named Precita Canning Company, that was in San Francisco and destroyed during the 1906 earthquake. PAHA also reviewed Council’s motion to rename Portage Avenue and the new Private Street B to Thomas Foon Chew Avenue in honor of his role in the construction and operation of the Bayside Cannery at this property, which he constructed in 1918 and operated until his death in 1931. PAHA concurred with the proposed street name.
BMR/Parkland Dedication Parcel Acceptance
In accordance with the approved Development Agreement, one of the five resulting parcels, a
3.25-acre parcel spanning Matadero Creek, and referred to in the Development Agreement as the “BMR/Parkland Dedication Parcel” is proposed to be conveyed to the City. The Development Agreement anticipated that the parcel would be offered for dedication on the Final Map. Following additional discussion, the applicant and City staff have agreed to transfer the property instead through a grant deed. An operating memorandum has been prepared to facilitate this transfer, and staff recommends that the Council authorize the City Manager to execute the memorandum and take other actions necessary to take possession of the parcel.
Following Council’s authorization and the City’s acceptance of the grant deed, the City will be responsible for any site maintenance and will take over the existing lease with Comcast for the operational use within the switch building.
At this time there is no specific timeline for construction of improvements on the BMR/Parkland Dedication Parcel; however, following this action and at Council’s direction, the City would begin pursuing improvements. The City, supported by a Metropolitan Transportation Commission grant, is currently completing early implementation work to inform a Request for Proposal to partner with an affordable housing developer, as detailed further in CMR #2507- 4927.
3 Resolution 5739 is available online at https://portal.laserfiche.com/Portal/DocView.aspx?id=3754&repo=r- 704298fc
FISCAL/RESOURCE IMPACT
Fees for processing of the Final Map have been paid by the applicant in accordance with the adopted municipal fee schedule. In accepting the grant deed for the 3.25-acre parcel, the City will take on all operational costs for maintenance of the parcel such as landscaping maintenance and utilities. As part of the conveyance of the resulting BMR/Parkland Dedication parcel to the City, the City will also take over the lease for the switch building on the southeast side of the Creek at 278 Lambert.
The City is working to refine the operational costs associated with the parcel, which are expected to be offset by revenue from the switch building, both of which are expected to be approximately $95,000 annually. As these costs are refined and coordinated with City departments, necessary appropriation actions will be included as part of the FY 2026 Mid-year budget process and incorporated into the development of the FY 2027 Operating Budget. At the time of construction of the townhomes, Sobrato or the subsequent property owner shall be responsible for payment of the associated development impact fees at final occupancy for each respective townhome. Impact fees associated with the townhome development are currently estimated at $1,282,856 in addition to the public art in-lieu fees that will be collected for the townhomes. In addition, at the time of occupancy of the townhomes, payment of the $5 million public benefits fee is due. This shall be assessed pro rata at the time of delivery of the individual townhomes if delivery for occupancy is phased. It should be noted that the impact fees do not include park fees, parkland dedication fees, housing impact fees, nor housing in-lieu fees. Those fees are addressed through the dedication of the 3.25-acres and the $5 million in accordance with the Development Agreement.
STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on November 7, 2025, which is 10 days in advance of the meeting. In addition, although not required, because the project includes renaming of a public street (Portage Avenue) noticing was provided to a 600-foot radius as well as all property owners and tenants with addresses on Portage Avenue. This notice was mailed on November 6, 2025.
At the time of this staff report, staff has not received any public comments on the final map, street naming, or acceptance of the land to be conveyed by Sobrato.
ENVIRONMENTAL REVIEW
The project was previously evaluated in accordance with the California Environmental Quality Act and Council certified the Environmental Impact Report for this project, making overriding considerations, on September 12, 2023, through adoption of Resolution 10123. The proposed action to record the Final Map is ministerial if the map is found to be in substantial conformance with the previously approved Vesting Tentative Map. That said, the recordation of the Final Map and authorization to complete the necessary documents for conveyance of the property is consistent with the approved Development Agreement and associated EIR.
ATTACHMENTS
Attachment A: Approved Record of Land Use Action for the Development Agreement, including the Vesting Tentative Map
Attachment B: Final Map and Link to Environmental Documents Attachment C: Draft Operation Memorandum No. 1 to the Development Agreement Attachment D: Resolution Renaming Portage Avenue
APPROVED BY:
Jonathan Lait, Planning and Development Services Director