Community Development

Community Development STAFF REPORT Housing Commission Meeting Date: 11/8/217 Staff Report Number: 1724HC Regular Business: Recommendation of a Below Market Rate Housing Agreement Term Sheet with Tarlton Properties, Inc. for 149 O Brien Drive Recommendation Staff recommends that the Housing Commission recommend approval of the draft Below Market Rate (BMR) Housing Agreement Term Sheet (Attachment A) to the Planning Commission for proposed modifications to an existing R&D/office building at 149 O Brien Drive. Policy Issues Each BMR Housing Agreement is considered individually. The Housing Commission should consider whether the proposal would be in compliance with the BMR Housing Program Ordinance and requirements. Background Site location The project site is an existing multitenant office and research and development (R&D) building located at 149 O Brien Drive, on the southern side of O Brien Drive between Adams Drive and University Avenue, and is zoned LS (Life Sciences). The subject property is also referred to as Building 1 of the Menlo Business Park. Adjacent parcels to the north, east, and west (using O Brien Drive in an east to west orientation) are also located in the LS zoning district, and primarily contain warehouse, light manufacturing, R&D, and office uses. Singlefamily residences in the City of East Palo Alto are located directly south of the project site. A location map is included as Attachment B. Analysis Project description The existing building is approximately 3,623 square feet, including a partial second floor. Since its construction in the 198s, the building has been used as a multitenant space for life science R&D companies. The building owner, Tarlton Properties, Inc., is requesting architectural control to create a 519 square foot mezzanine within the existing building. Select sheets from the project plans are included for reference as Attachment C. The Housing Commission should note that the proposal is still under staff review, and aspects of the design are subject to change before final project actions. Regardless, as long as the project scope stays consistent, the draft BMR Housing Agreement Term Sheet and the Housing Commission s recommendation would remain applicable to the project. City of Menlo Park 71 Laurel St., Menlo Park, CA 9425 tel 653366 www.menlopark.org

Staff Report #: 1724HC BMR housing program requirement The applicant is required to comply with Chapter 16.96 of City s Municipal Code, ( BMR Ordinance ), and with the BMR Housing Program Guidelines adopted by the City Council to implement the BMR Ordinance ( Guidelines ). At this time, the Housing Commission should review the draft BMR In Lieu Fee Agreement Term Sheet and provide guidance to staff, the applicant, and the Planning Commission. The draft Term Sheet would be used to inform the BMR In Lieu Fee Agreement, which would subsequently be reviewed by the Planning Commission. For this specific project, the residential unit equivalent is.3 units. However, residential use of the property is not allowed in the LS zoning district and consequently would not be consistent with the Life Sciences General Plan Land Use Designation. The subject site is located within the Menlo Business Park, which is also zoned LS, and adjacent buildings are occupied by a combination of manufacturing, R&D, warehousing, and office uses. Further, the property owner does not own any sites zoned for residential uses. Based on the project zoning and land use, and the very small residential unit equivalent, staff has found that development of such units onsite or offsite in accordance with the requirements of the BMR Ordinance and Guidelines is not feasible. The developer is required to pay the applicable in lieu fee as provided in the BMR Ordinance and Guidelines. To streamline the review process for applicants, the draft Term Sheet is being reviewed at this time. However, the formal BMR In Lieu Fee Agreement would be reviewed by the Planning Commission as part of the final actions on the project. The in lieu fee will be calculated as set forth in the table below. The applicable fee for the project will be based upon the per square foot fee in effect at the time of payment and the proposed square footages within Group A and Group B at the time of payment. Table 1: BMR Requirements and Applicant Proposal Fee per square foot Square feet Component fees Existing Building Office $16.9 3,623 ($517,528.7) Existing Building NonOffice $9.7 ($.) Proposed Building Office $16.9 31,142 $526,299.8 Proposed Building NonOffice $9.7 $. BMR InLieu Fee Option $8,771.1 Correspondence Staff has not received any correspondence regarding the BMR Housing Agreement Term Sheet. Conclusion Given that the residential unit equivalent for the project is.3 units, residential use of LSzoned properties is not permitted under current zoning regulations, and the applicant does not own other land within the City zoned for residential use, staff recommends that the Housing Commission recommend to City of Menlo Park 71 Laurel St., Menlo Park, CA 9425 tel 653366 www.menlopark.org

Staff Report #: 1724HC the Planning Commission approval of an in lieu fee as identified in the draft BMR Housing Agreement Term Sheet. Impact on City Resources The project sponsor is required to pay Planning, Building and Public Works permit fees, based on the City s Master Fee Schedule, to fully cover the cost of staff time spent on the review of the project. Environmental Review The proposed project is being evaluated with respect to compliance with the California Environmental Quality Act (CEQA) as part of the Planning Commission action. BMR Housing Agreement Term Sheet recommendations are not an action under CEQA, so environmental review is not required by the Housing Commission. Public Notice Public Notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. Attachments A. Draft BMR In Lieu Fee Agreement Term Sheet B. Location Map C. Project Plans (Select Sheets) Report prepared by: Tom Smith, Associate Planner Report reviewed by: Kyle Perata, Senior Planner City of Menlo Park 71 Laurel St., Menlo Park, CA 9425 tel 653366 www.menlopark.org

149 O Brien Drive Draft Below Market Rate (BMR) Housing Agreement Term Sheet 1. Applicant owns property known as Assessor s Parcel Number 5547312 ( Property ), more commonly known as 149 O Brien Drive, Menlo Park; 2. Applicant is requesting architectural control to create a new mezzanine within an existing research and development (R&D) building. The subject building is greater than 1, square feet in gross floor area (GFA) and therefore, Applicant is required to comply with Chapter 16.96 of City s Municipal Code ( BMR Ordinance ) and with the Below Market Rate Housing Program Guidelines ( Guidelines ) adopted by the City Council to implement the BMR Ordinance; 3. Property is located within the LS (Life Sciences) zoning district and the Life Sciences land use designation in the City of Menlo Park; a. Property s General Plan land use and zoning designations do not permit residential uses; 4. Applicant does not own any other sites within the City that are zoned for residential land uses; and 5. Consistent with other recent BMR Housing Agreements, Applicant is permitted to satisfy the BMR requirement for the proposed project by payment of an in lieu fee; a. The BMR in lieu fee is estimated at $8,771.1; b. The equivalent unit requirement is.3 units; c. Therefore, the Applicant is proposing to pay the in lieu fee, which would be adjusted based on the existing and proposed square footages at the time of building permit issuance. The applicable fee per square foot is adjusted annually on July 1.

6. The table below provides the estimated in lieu fee: Table 1: BMR Requirements and Applicant Proposal Fee per square foot Square feet Component fees Existing Building Office $16.9 3,623 ($517,528.7) Existing Building NonOffice Proposed Building Office Proposed Building NonOffice $9.7 ($.) $16.9 31,142 $526,299.8 $9.7 $. BMR InLieu Fee Option $8,771.1

1215 124 ADAMS CT 1355 12 119 1315 KIRKWOOD CT ADAMS DR 155 PROJECT 143 CLARENCE CT LOCATION O'BRIEN DR 155 1455 KAVANAUGH DR 1555 146 16 1525 HAZELWOOD WY 149 153 GLORIA WY URSULA WY FARRINGTON WY EMMETT WY UNIVERSITY AVE MICHIGAN AVE ANNAPOLIS ST BAYLOR ST NOTRE DAME AVE FORDHAM ST GONZAGA ST CITY OF MENLO PARK LOCATION MAP 149 O'BRIEN DRIVE DRAWN: TAS CHECKED: KTP DATE: 11/8/17 SCALE: 1" = 3' SHEET: 1

ATTACHMENT C RECEIVEb 124 211 CITY OF MENLO PARK PLANNING DIVISION F 1 Menlo Park Labs Bldg. 1 New Mezzanine TARLION 149 O Brien Drive, Menlo Park, CA. 9425 4R( IIT1F IS DATE la.21217 217 I N 11 I S

FRONT REAR SIDE ERGN REAR SIDE SIDE PROJECT DATA PROJECT DATA SHEET INDEX CONTACT i SITE AND ZONING REQUIREMENTS a. PROJEC SITE AREA 1.99 AC 73151 SF b ZON NG IGNK ON: LS C. BUILDING HE OH LIM 353 MAX & BLLDING SETBACKS REDU RED. YARD 5 YARD 13 YARDS 1 2 EXISTING PROJECT a TOTAL BUILDING AREA FIRST FLOOR SECGND FLGGR 22,464 SD FT.15 SD FT 3E,623 SD ET h. BUTOING SETBACKS YARD TO BUILD.NG EX STING TOP) YARD EXISTING BGTTGM) YARD 1EXISTING LEFT) YARD EX SONG RIGHT: CODE COMPLIANCE NOTES 1 THE PROJECT CONFORMS TO THE CITY FIRE REGULATIONS EXISTING FIRE HYDRANTS ARE PROVIDED TO COVER THE ENTIRE SITE 2 EXISTING DRIVEWAYS 25 WIDE AT FRONT, ARE PROVIDED FOB THE MOVE VENT OF FIRE TRUCKS THROUGH THE SITE,a 5a,. 35,S., 45 COVER SHEET 1 PBOJEC UAA SHEET INDEX AND CON FACT 2 V CINITY MA 2a SITE PLAN )Eor Reference only) 25 BOUNGARY & TOPOGRAPH C SURVEY 3 EXISOND IRTT FLOOR PLAN (For Te orence nqiy) C EXISTING SECOND FLOOR PLAN En e ere9ce only) 5 PROPOSED MEZZANINE FLOOR PLAN 6 GEA DIAGRAMS 7 EXISTING BUILDING PHOTOS CJENT,NER TARLTDN PROPERTIES. INC 53 G BR EN DRIVE SUITE C MENLO PARK, CAL CORNIA 94325 PHONE I I 33T365T FAX )655I 333636 hers E LWAT TAR_TON COD CONTAC: RDN KR ETEML EP ARCHITECTS AROH:TEOTS + ENGINEERS 3B9 BRADFORD STREET, SUITE 3 REDWOOD CITY, CALIFORNIA 5463 PHONE (65) 3646453 [AX (6) 364261 WEBSITE WTNWAE GM CONTACT: ELKE MACGREGOR EXISTING SITE CUVERAGE 3% 3 THE PROJECT WILL HAVE FIRE SPRINKLERS AND FIRE EXTINGUISHERS AS REDUIRED BY THE MENLO PARK FIRE DEPARTMENT. PROJECT SCOPE c. EXISTING LANDSCAPE AREA COVERAGE. 2E NEW WGHK EXISTING PAVING AREA COVERAGE 5 Tb I. (N) 126 APE STEEL DECK MEZZANINE e. EXISTING BUILDING HEIGHT )TG TOP GE PARAPET) 32C PARKING PROVISION TO STALLS (24/1,) 3 PROPOSED PROJECT a NEW INTEBIDB SF. PROPOSED.IEZZANINE 519 SOFT 5. ELGOR AREA RATIO (F AR) 42 4 % g a Menlo Park Labs Bldg. 1 I TAR [TO N 149 O BMen Drve, Menlo Park, CA. 9425 New Mezzanine PROJECT DATA, SHEET INDEX & CONTACT I DATE [3 23 231T ARI HITE( TS ENGINEERS

F i, A ;74 Pp.. BAYFRONTEXPY84 :, _*. jj I I p ti 1 p ;. i v Ir, _e; $.1 I I.f Menlo Park Labs Bldg. 1 II IA R LIED N 149 O Brien Drive, Menlo Park, CA, 9425 New Mezzanine AERIAL VICINITY MAP 3 TIc HTJ TIc TS 2 DATE 123.217 217 F \ I \[ r F P

2aDATE 123 217 P 1 I.1 I 1 P S C 217 i TAR LTtD N 149 O Brien Drive, Menlo Park, CA. 9425 HI1F T% Menlo Park Labs Bldg. 1 New Mezzanine SITE PLAN (FOR REFERENCE) H I HTHTETJTiTT1iff t...jjthttjjti. fl BLJLDNG 1 I UJJzH fh LAEME\ h FMP LOADNC U ]

23 5 5O O 5 FiRST FLOOR PLAN 8 16 22 SCALE: 1/16=1 C N Menlo Park Labs Bldg. 1 SI TAR LTD N 149 OBrien Drive, Menlo Park, CA. 9425 New Mezzanine EXISTING FIRST FLOOR PLAN (FOR REFERENCE ONLY) 3DATE 123217 217.di( HITE( T EDGINEERS

() NEV BUILDING AREA 523 SF. B CC. MEZZANINE FLOOR PLAN O1 1/16 = 1 6 16 32 SCALE: 1/16=1 Menlo Park Labs Bldg. 1 II IA R LIO N 149 O Brien Drive, Menlo Park, CA. 9425 New Mezzanine PROPOSED MEZZANINE FLOOR PLAN 5DATE 23217 217.\R(HTTECT1. ENGINEERS

c P FIRST FLOOR PLAN 2 6 1 2 5 SECOND FLOOR PLAN 1 EXISTING GFA 3,623 SF PROPOSED GFA 519 SF SUMMARY: (E) FIRST FLOOR (E) SECOND FLOOR PROPOSED MEZZANINE 22,464 SF 8,159 SF 519SF N TOTAL z31,142sf \ j Menlo Park Labs Bldg. 1 II TAR LTO N 149 O Brien Drive, Menlo Park, CA. 9425 New Mezzanine GFA DIAGRAMS DATE. 1.23217 217 RtHITt T. ENGINE EES

NORTH ELEVATION WEST ELEVATION SOUTH ELEVATION EAST ELEVATION Menlo Park Labs Bldg. 1 SI IA R [TO N 149 O Brien Drive, Menlo Park, CA. 9425 New Mezzanine EXISTING BUILDING PHOTOS 7 DATE 123 217 1 217 I I ( I \ (. I N E F R