15 Staff Report - 14300 Winchester Blvd.
DATE: TO: FROM: SUBJECT: lVIEETINGDATE: 11/01/04 ITEM NO.. 15 COUNCIL AGENDA REPORT October 29, 2004 MAYOR AND TOW A. REVIEW OF DRAFT COMMUNITY BENEFIT AGREEMENT FOR THE LOS GATOS GATEWAY
PLANNED DEVELOPMENT. APN 424-32-068. PROPERTY LOCATION: 14300 WINCHESTER BLVD. FILE #PD-04-1. PROPERTY OWNER\APPLICANT: SOBRATO DEVELOPMENT COMPANIES. B. ADOPT RESOLUTION AUTHORIZING
TOWN MANAGER TO EXECUTE FINAL COMMUNITYBENEFIT AGREEMENT FOR THE LOS GATOS GATEWAY PLANNED DEVELOPMENT. RECOMMENDATION: 1. Review the draft Community Benefit Agreement for the Sobrato
Development project and provide direction to staff regarding any desired changes. 2. Adopt resolution authorizing the Town Manager to execute the final Community Benefit Agreement. BACKGROUND:
On April 23, 2004, the Town Council approved a modification to an approved PlannedDevelopment at 14300 Winchester Boulevard by Sobrato Development. The approved project now includes
160,000 square feet of officelR&D and 290 apartments, 51 of which are BMP units. A number of of community benefits were offered as part of the development proposal including a shuttle
link between the Campbell light rail station and the project, a gateway art feature, riparian improvements and funds for traffic and circulation improvements. The Planned Development
Ordinance adopted onMay3,2004 includes a condition requiring Council approval of a CommunityBenefit Agreement (CBA). The applicant has submitted a draft agreement for the Council's consideration
(see Attachment). PREPARED BY: DIRECTOR OF COMMUNITY DEVELOPMENT N:IDEVlSUZANNEICounciJ\ReportsIFwd. to TClSobratoI14300Win-CBA.wpd Reviewed by: ssistant Town Manager ---'t;.·'t=-Town
Attorney __ __Community Development Revised: 10/29/04 9:23 am Reformatted: 5/30/02
PAGE 2 SUBJECT: 14300 WINCHESTER #PD-04-1 October 29, 2004 DISCUSSION: For several months, staffhas negotiated with the
applicant on numerous provisions ofthis agreement in order to incorporate the community benefits adopted by Council in granting the Planned Development. The applicant's latest draft
of the agreement is attached and includes all of the benefits referenced in the Planned Development. The following are sections of the agreement requiring Council review and direction:
1. Light Rail Shuttle Section 1 ofthe draft agreement contains language stating that the headways and hours of operation will 'be approved by the Director of Community Development in
consultation with VTA. The applicant will consult with VTA to determine the appropriate times and frequency for the sl;J.uttle. In addition, it has not been determined if the shuttle
will be a public (through VTA) or private system. The preferred method is to work the shuttle into the community bus service currently under development by the VTA, so that it is a public
system. A preliminary meeting was recently held between the applicant, VTA and Town staff. A public system is probable through a partnership between the applicant and VTA. The shuttle
will be available to employees and residents of the project at no charge. 2. Riparian Improvements Section 4 of the draft agreement states that two drinking fountains will be provided
if permitted by the appropriate regulatory authority, Santa Clara Valley Water District (SCVWD). Staff recommends that language be added to the agreement stating that in the event that
ifSCVWD does not allow the water fountains to be installed alongside the creek trail, the fountains will be installed on the applicant's property near the two trail connections to the
creek trail. The applicant has verbally agreed to this. 3. Traffic Improvements/Art/Sports Fields As contained in the agreement, the applicant offers to provide at total of $150,000
in community benefit funds--$50,000 for traffic improvements and $100,000 for public art located on the property (see Sections 5 and 6). The traffic funds could potentially be used for
improvements to the Knowles DriveIWinchester Blvd.!A Street intersection or for an arterial study planned for Fiscal Year 2006-07. At Staff's request, the agreement includes a provision
granting Council the to reallocate all or a portion of the $150,000 in community benefit funds for use on sport facilities (see Item B on Page 1). Traffic Impact
Mitigation fees may be used for the arterial study and/or intersection improvements if the community benefit funds are used for sports facilities. Staff will return to Council for direction
on use of these funds prior to encumbering the funds.
PAGE 3 SUBJECT: 14300 WINCHESTER BOULEV#PD-04-1 October 29, 2004 CONCLUSION: A condition ofthe PlannedDevelopmentrequires the CommunityBenefitAgreem
ent to be approved by the Council prior to issuance of building permits (excluding the grading and parking garage). Construction is already underway, with the building shell permit expected
to be issued shortly. In order for the project construction to continue on schedule, the CommunityBenefit Agreement needs to be approved as written or with modifications as agreed on
by the Council. If the matter is continued, the building permit for the office building will be delayed. Staffrecommends that the Council authorize the Town Manager to execute the agreement
with the following change: Add the following at the end ofsection 4, Riparian Corridor: In the event that the regulatory agency does not allow the water fountains to be installed alongside
the creek trail, the fountains will be installed on the applicant's property near the two trail connections to the creek trail. ENVIRONMENTAL REVIEW: An environmental Impact Report (EIR)
was prepared for the proj ect and was certified bythe Council on February 4,2002. An Addendum to the EIR was accepted by Council on April 23, 2004. No further environmental analysis
is required for the Community Benefit Agreement. FISCAL IMPACT: None Attachments: 1. Resolution ofthe Town Council ofthe Town ofLos Gatos Approving a CommunityBenefit Agreement for a
Planned Development at 14300 Winchester Boulevard Distribution: John Shenk, Sobrato Development, 10600 N. De Anza Blvd., Suite 200, Cupertino, CA 95014 .BNL:RT:SD N:IDEV\SUZANNE\CouncillReportslFwd.
to TC\Sobrato\14300Win-CBA.wpd
RESOLUTION NO. RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING A COMMUNITY BENEFIT AGREEMENT FOR A PLANNED DEVELOPMENT AT 14300 WINCHESTER BOULEVARD WHEREAS, the Town
of Los Gatos approved Ordinance 2130 approving an amendment to a Planned Development at 14300 Winchester Boulevard, and WHEREAS, Ordinance 2130 requires the applicant to provide specified
community benefits, andWHEREAS, the Ordinance requires the applicant to enter into an Community Benefit Agreement with the Town prior to issuance of building permits, and WHEREAS, such
an agreement has been developed by the applicant and the Town, and THEREFORE BE IT RESOLVED: The Town Council hereby approves the Community Benefit Agreement attached hereto as Exhibit
A. FURTHER RESOLVED: The Town Manager is authorized to execute said Community Benefit Agreement. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos,
California, held on the 1st day of November 2004 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAlN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST:
CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA Attachment 1
COMMUNITY BENEFITS AGREEMENT This agreement ("Agreement"), effective as of this day of _ 2004, is by and between Sobrato Land Holdings, a California limited partnership ("Owner") and
the Town of Los Gatos ("Town") as follows: RECITALS A. Owner has been granted approvals for development of an office/research and development/residential project (the "Project") on property
generally known as 1430014350 Winchester Boulevard in the Town (the "Property"). Said approvals include a rezoning of the Property to the CM:PD (Controlled Manufacturing/Planned Development)
zone, approved by Ordinance No. 2130, adopted on May 5, 2004, as well as Architectural and Site approval, approved by Resolution No. S-04-47 dated August 17, 2004. These approvals, as
well as others that will be obtained from the Town are collectively called the "Approvals." B. During the process of obtaining the Approvals, Owner represented that it was willing to
provide certain benefits to the Town as an incident of development of the Project. Some of such benefits were required as conditions of the Approvals. These various benefits are collectively
called herein the "Community Benefits." Owner is willing to allow the Town to redistribute the funds allocated to items #5 and #6 below to a sports facility so long as appropriate recognition
is given to Owner for its contributions and so long as the traffic improvements required in item #5 are completed. C. Town and Owner desire to enter into this Agreement in order to further
specify the scope of the Community Benefits, to avoid uncertainty in the development of the Project, and to memorialize the obligations that Owner has undertaken as part of the development
of the Project. NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual covenants and conditions contained herein, Town and Owner hereby agree as follows:1. Light
Rail Shuttle. The Town desires Owner to assist the Town in its efforts to bring Light Rail Service to Los Gatos. Owner shall contribute funds to facilitate the operation operation of
a shuttle or equivalent service ("Shuttle Service") between the Winchester Station in Campbell and the Project as described below. The Shuttle Service shall commence operation upon the
later of (i) the beginning .of light rail service to the Winchester Station in Campbell or (ii) the Town's issuance of a Final Certificate of Occupancy for the first building in the
Project and Owner's obligations shall tenninate if and when light rail service or other public transportation is available to the Project. The scope of the service shall be to run Monday
through Friday during the peak commute periods (excluding all Federal Holidays) on headways reasonably acceptable to the Director of Community Development of the Town in consultation
with the Valley Transportation Authority. Once the actual schedule is determined, the Director of Exhibit A
Community Development will report it to the Town Council. Owner is currently exploring alternative means to assist the Town and the VTA. 2. Transit for Livable Communities. If the Town
intends to apply for grant funds for the Transit for Livable COlmnunities ("TLC") program. Following issuance of the first final certificate of occupancy for the residential portion
of the Project, Owner shall help the Town in its fornmlation of such a program by providing technical assistance through the services of a grant writer designated by the Town and reasonably
acceptable to Owner. Such assistance shall not exceed a total of forty (40) hours of consultant's time, which shall be at no cost to the Town. 3. Affordable Housing Units. Pursuant to
Section II (1) in Ordinance 2130, Owner has coordinated with the Director of Community Development and has designated fifty one (51) of the residential units as below market rate units.
Pursuant to Section V (5) of Ordinance 2130, these units shall be subject to the Town's Below Market Price Program in place at the time Ordinance 2130 was adopted by the Town, and Owner
shall record a deed restriction prior to the Town granting the first final certificate of occupancy on a residential building within the Project. 4. Riparian Improvements. Prior to issuance
of the first final certificate of occupancy for the Project, Owner shall either have installed, or shall have provided bonds or other adequate security for the installation of, Twenty
Thousand Dollars ($20,000) of landscape improvements along the edge of the Los Gatos Creek Trail adjacent to the Property. This work will include two drinking fountains at the two access
locations from the property to the Creek Trail so long as such work is permitted by the appropriate regulatory authority. 5. Public Art. Owner shall provide a contribution toward a gateway
art feature to be located on the Property in the amount of One Hundred Thousand Dollars ($100,000). Owner shall propose the public art and shall seek input from the Arts Commission of
the Town prior to submitting the art to the Director of Community Development for approval. Owner shall have contributed or shall have provided bonds or other adequate security for the
payment toward the public art prior to the Town granting the first final certificate of occupancy for the Project. 6. Traffic and Other Public Improvement. Owner shall pay to the Town
the sum of Fifty Thousand Dollars ($50,000) to be used for traffic and other public improvements (the "Traffic Contribution"). The amount of the Traffic Contribution shall be prorated
between office/R&D and residential space on a square footage basis. The portion of the Traffic Contribution applicable to office/R&D space shall be paid prior to the issuance of the
first [mal certificate of occupancy for the office/R&D space in the Project. The portion of the Traffic Contribution applicable to the residential space shall be payable at the issuance
of the final certificate of occupancy for the residential dwellings in the Project. A portion of this fee will be used by the Town to improve the intersections of Knowles and A Street
and Knowles and Winchester (e.g. enhanced crosswalk pavement/markings, signal coordination, painting of signs and
posts, asphalt repair at the railroad tracks, etc.) to improve its function for both pedestrians and vehicles as soon as practical. 7. Traffic Demand Management Plan. From and after
the date this Agreement is signed by Owner and the Town, Owner shall include in any lease of commercial space within the Project a provision whereby the commercial tenant agrees to develop
and implement a Traffic Demand Management ("TDM") plan to the reasonable satisfaction of the Director of Community Development of the Town. 8. Police Communications Infrastructure. Following
issuance of all certificates of occupancy for the buildings to be constructed as part of the Project, Owner will provide rooftop space for a small antenna at the Property (at a location
to be mutually determined by Owner and Town) for the exclusive use of the Los Gatos Police Department in its efforts to increase public safety. Such antenna shall be installed and maintained
by the Town at the Town's sole expense, and any damage to the Property and improvements thereon resulting from the installation, use or maintenance of such antenna shall be promptly
repaired by the Town at the Town's sole expense. Owner shall have no liability to the Town in the event of damage to the antenna from any cause, including without limitation acts or
omissions of Owner, and the Town shall be solely responsible for any repairs to the antenna at the Town's sole cost. Before entering onto the Property pursuant to this Section 8, the
Town shall indemnify, defend with counsel reasonably acceptable to Owner pursuant to a comprehensive indemnity agreement to be mutually agreed upon by the parties.
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the year and date first above written. TOWN: TOWN OF LOS GATOS, a municipal corporation By:==========
Debra Figone, Town Manager APPROVED AS TO FORM: Orry P. Korb, Town Attorney ATTEST: Marian Cosgrove, Town Clerk OWNER: SOBRATO LAND HOLDINGS, a California limited partnership By: The
John Michael Sobrato 1985 Separate Property Trust, Its General Partner By: _ John Michael Sobrato, Trustee