CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: October 19, 2026
Report #: 2608-6708
TITLE
Adoption of an Ordinance Amending the Special Setback Map to Reduce the Special Setback Along a Portion of Hansen Way at 3300 El Camino Real from 50 Feet to 20 Feet. CEQA Status:
Exempt Pursuant to CEQA Guidelines Section 15305 (Minor Alterations in Land Use Limitations).
RECOMMENDATION
Staff recommend that the City Council:
1. Find that the draft ordinance (Attachment A) is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15305, which applies to minor alterations in land use limitations that do not result in changes in land use or density; and
2. Adopt the draft ordinance (Attachment A) amending the Special Setback Map to reduce the special setback along the Hansen Way frontage of 3300 El Camino Real from 50 feet to 20 feet.
EXECUTIVE SUMMARY
The proposed amendment to the Special Setback Map implements the City Council’s direction from May 27, 2025. The proposed reduction of the special setback along the Hansen Way frontage of 3300 El Camino Real from 50 feet to 20 feet would reduce a significant development constraint created by the existing special setback in combination with an existing utility easement. The proposed 20-foot special setback would align with the applicable street side yard setback of the underlying zoning designation and retain frontage necessary to accommodate potential future pedestrian, bicycle, and other right-of-way improvements. The Planning and Transportation Commission recommended approval of the ordinance on June 10, 2026.
BACKGROUND
Special setbacks are established under Palo Alto Municipal Code (PAMC) Chapter 20.08.1 The Special Setback Map sets forth setback lines beyond which structures may not be constructed.
The special setback is conceptually distinct from the standard front, side, and rear setbacks established by the underlying zoning district, though they operate similarly in practice.
The existing special setback along the Hansen Way frontage of 3300 El Camino Real is 50 feet.
The proposed ordinance would amend the Special Setback Map to establish a 20-foot special setback along this portion of Hansen Way. An amendment to the Special Setback Map requires legislative action by the City Council.
Previous Council Direction to Reduce Setback
On May 27, 2025,2,3 the City Council considered amendments to the El Camino Real Focus Area regulations, including a proposal to reduce a portion of the Hansen Way special setback. At that meeting, staff explained that the existing 50-foot setback could constrain redevelopment at the Hansen Way/El Camino Real intersection, particularly at 3300 El Camino Real. Staff noted that the purpose of the special setback appeared to be associated with future transportation and streetscape improvements, including bus access, bicycle facilities, and pedestrian improvements.
Council members discussed whether the full 50-foot setback remained necessary. Staff indicated that the Office of Transportation had been consulted but had not provided a specific recommendation regarding the appropriate reduced setback. Staff also indicated that a 50-foot setback appeared to be greater than necessary for the anticipated improvements.
The Council considered several alternatives. A 30-foot setback was discussed, but staff indicated that representatives of the property did not believe a 30-foot setback would provide sufficient area to facilitate redevelopment. Staff proposed that the Council direct staff to study a reduction to approximately 20 feet, while continuing to evaluate the transportation improvements that could be accommodated along Hansen Way.
Council members also discussed the possibility of eliminating the special setback entirely.
Ultimately, the Council supported pursuing a reduction to 20 feet rather than eliminating the setback, with the understanding that a subsequent zoning amendment would be required to implement the change.
The proposed ordinance implements that prior Council direction. 1 City of Palo Alto Municipal Code Chapter 20.08 Setback Lines:
https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-82522 2 City Council Staff Report from May 27, 2025, on El Camino Real Focus Area:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83418&dbid=0&repo=PaloAlto 3 City Council Action Minutes from May 27, 2025 (Item 7, on Page 4):
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=43272&dbid=0&repo=PaloAlto Previous Council Action to Reduce Setback at 3200 El Camino Real On April 1, 2019, the City Council reviewed a development application at 3200 El Camino Real, located across Hansen Way from 3300 El Camino Real. The project proposed a four-story hotel and requested elimination of the special setback along Hansen Way. The proposal also included removal of the pork chop at the corner of El Camino Real and Hansen Way, straightening of the Hansen Way path, and bicycle and pedestrian facility improvements.
The City Council approved a motion on the development application that did not include complete elimination of the special setback. Instead, the Council accepted the Planning and Transportation Commission’s recommendation to eliminate the special setback for hotel and mixed-use developments only. The second reading of Ordinance 5461 was approved on April 22, 2019, and the ordinance became effective on May 23, 2019.
Although the development and associated right-of-way improvements approved under 18PLN00045 were never implemented and the entitlement is no longer effective, the special setback reduction approved under Ordinance 54617 remains in effect.
Planning and Transportation Commission Recommendation
The Planning and Transportation Commission (PTC) considered the proposed ordinance on June 10, 2026, and recommended 6-0 (Commissioner Hechtman absent) that City Council adopt the draft ordinance, with specific guidance to include a reference to 3300 El Camino Real in the ordinance.
During its discussion, the PTC considered whether the amendment should apply more broadly to other properties along Hansen Way. Commissioners discussed the property at 3200 El Camino Real, located across Hansen Way, and the possibility of considering a future reduction to the special setback for housing projects on that property. Staff explained that the current Council direction was specific to the segment at 3300 El Camino Real and indicated that any future changes to other properties could be considered separately.
The PTC also discussed the unique configuration of the 3300 El Camino Real site and the relationship between the special setback and the existing utility easement.
The PTC separately recommended that the City Council consider exploring a future reduction of the Hansen Way special setback for 3200 El Camino Real. That recommendation is not part of the ordinance currently before the City Council though Council may provide further direction to staff for a future ordinance if desired.
ANALYSIS
The proposed amendment is intended to remove a regulatory constraint that substantially limits the development potential of 3300 El Camino Real while retaining an area for future public improvements along Hansen Way.
7 Ordinance No.5461: https://www.paloalto.gov/files/assets/public/v/1/city-clerk/ordinances/ordinances-1909-topresent/ordinances-by-number/ord-5461.pdf?t=44883.75 The 50-foot special setback combined with the existing utility easement that runs diagonally across the property, significantly constrains the buildable area and results in an irregularly shaped buildable portions. Staff's analysis concluded that reducing the special setback to 20 feet would provide necessary relief from these overlapping constraints and create a more viable footprint for future development.
The proposed 20-foot setback also retains additional frontage between future development and the street line. Staff considers this area sufficient to preserve opportunities for future pedestrian, bicycle, and streetscape improvements along Hansen Way. The proposed setback is also consistent with the 20-foot street-side setback associated with the site's underlying zoning district.
The amendment is consistent with the objectives of the expanded El Camino Real Focus Area and the City’s Housing Element, which seek to facilitate higher-density, multifamily residential development along major transit corridors. The property at 3300 El Camino Real is identified as a Housing Element opportunity site and is specifically identified for future residential development. Maintaining the existing 50-foot setback would continue to constrain the buildable area available for such development. The Housing Element identifies this site for up to 96 housing units, while the El Camino Real Focus Area would allow even greater density.
Importantly, the proposed ordinance does not approve a development project or establish development entitlements for 3300 El Camino Real. There is no development currently proposed at this site. Any future development proposal would remain subject to applicable zoning, architectural review, transportation, building, and other City requirements.
FISCAL/RESOURCE IMPACT
The proposed amendment to the Special Setback Map is not anticipated to have a direct fiscal impact on the City budget. Any potential economic benefits associated with future redevelopment of the property would occur only if and when the property is developed.
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 and postcard mailing occurred on October 9, 2026, which is 10 days in advance of the meeting.
A member of the public representing Sand Hill Property Company, the primary lessee from Stanford, supported the proposed 20-foot setback and stated that the reduction would provide critical additional buildable area on the site. Staff has not received any additional public comments since the June 10, 2026, PTC hearing.
ENVIRONMENTAL REVIEW
The City has reviewed the proposed ordinance in accordance with that authority and criteria set forth in the California Environmental Quality Act (CEQA). The City, as the lead agency, anticipates that this ordinance will be exempt from CEQA in accordance with Guidelines Section 15305, which includes minor alterations in land use limitation, which do not result in any changes in land use or density.
ATTACHMENTS
Attachment A: Draft Ordinance
APPROVED BY:
Jonathan Lait, Planning and Development Services Director