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Attachment 30April 18, 2018 Ms. Jennifer Armer, Associate Planner Town of Los Gatos Community Development Department 110 E. Main Street Los Gatos, CA 95031 Phone: (408) 354-6872 Email: jarmer@losgatosca.gov RE: Cover Letter to Town Council from Public Hearing on April 2, 2018. 405 Alberto Way, 70,000 sf Modification to the Third Redesign Architecture and Site Application S-15-056 Conditional Use Permit Application U-15-009 APN 529-23-018 As you are aware, at its April 3, 2018 meeting, the Town Council continued its deliberations regarding our 405 Alberto Way Project to May 1st and directed Staff to review our proposal to further reduce the building square footage to 70,000 square feet which was in response to the Council’s questions at its prior March 20th hearing. The Town Council also directed Staff to review the neighbor’s 64,000 square foot alternative. We understand that Staff is currently undertaking that review. You requested that we provide a few renderings of our building illustrating the slight reduction in square footage. At your request, we have attached four (4) renderings of the proposed 70,000 sf building to this letter. Dan Kirby at ArcTec and his team worked on the Modifications to the Third Redesign to ensure that the building structure is attainable, and that the building frontage is properly balanced. These renderings show how we reduced the building massing on the north side to further reduce the impact to views and achieve a further reduction in the size and scale of the building from 74,260 sf to 70,000 sf. Rendering 1: The north side of the building has been reduced by another 16 feet which has resulted in an overall reduction of 4,260 sf. This has significantly widened the view corridor from 56 feet to now 72 feet from the northern setback line. Furthermore, we have eliminated the dog park and increased the open space for our tenants and neighbors. The open space will function as outdoor amenity space for purposes of attracting “Class A” tenants to offset the loss in indoor amenity space with the square footage reduction. Rendering 2: This rendering shows the view of the site with the removal of the street trees and the reduced scale/ mass of the building with a full view of the Caltrans on-ramp, mature trees and the western mountain views. As a reminder, we did not change the height, this rendering ATTACHMENT 30 APPLICANT COVER LETTER 2 shows the maximum height of the building at 30’6” which is well below the Town code’s 35’ height limit. Furthermore, we preserved the 38 surface parking spaces in the front of the building (along the Alberto Way frontage) for neighbors and visitors to use after normal business hours by keeping the building positioned to the rear of the property. Rendering 3: This is the updated overhead aerial view of the effects of the extensive landscaping proposed in our Landscape Plan. Rendering 3 shows the expanded northern area hardscape amenity and open space. As we were able to preserve the prior design’s plant schedule, we are still planting over 2,000 new plants and trees on the property. Rendering 4: This is an overlay site plan of our proposed 70,000 sf building compared to the existing building site plan in our Third Redesign. The existing 409 Alberto Way building is located 77 feet from the northern set back line, and today, it partially blocks the view corridor because it is only located 25 feet from Alberto Way. Our new renderings show that the proposed building would be set back 125 feet from Alberto Way which opens up the view corridor. Please refer to Rendering 1. The proposed modifications were intended to respond to the Council’s questions about the feasibility of further building adjustments along the northern property line to improve views for the adjacent residents. These adjustments are feasible and represent minor revisions and clarifications to the overall project description reflected in our Third Redesign. These will not add any new information to the Town of Los Gatos 401-409 Alberto Way Draft and Final Environmental Impact Report (EIR). As was the case with our prior reductions in building massing and size, this information will not require recirculation of the EIR because the minor modifications shown in the attached renderings will further lessen impacts that the Town previously found to be less than-significant. In addition, the changes incorporated into the Project would not involve a new significant environmental impact, a substantial increase in the severity of a prior environmental impact, or a feasible mitigation measure or alternative that we declined to adopt and that will clearly lessen any project impacts. No information provided in any of our submittals indicates that the Draft EIR was inadequate or conclusory or that the public was deprived of a meaningful opportunity to review and comment on the EIR. We understand that you are also reviewing the neighbors’ proposed 64,000 square foot alternative to our project. By contrast, the neighbors’ proposal that LP Acquisitions can further reduce the size of the building to 64,000 sf are based on argument, speculation, and unsubstantiated opinion, and they lack an adequate foundation because they are not based on facts; or assumptions based on facts that demonstrate smaller buildings would still meet the demand for Class “A” office space. We previously submitted extensive information regarding the size of the underground garage and the size of the building footprint. We were able to shave off another approximately 4,260 square feet to more closely align with the existing building footprint, without impacting the structural integrity of the garage and building foundation and while maintaining building symmetry. Another 6,000 square foot reduction along the northern side of the building would not noticeably expand the view corridor compared to existing conditions. The neighbors’ alternative to build a 64,000 sf building is APPLICANT COVER LETTER 3 infeasible due to the high price of land and construction costs. It is not financially feasible for LP Acquisitions to develop an office project of less than 70,000 sf on this site. In terms of the economic impact of the building size reduction, the loss of 6,000 square feet of rental revenue, from 70,000 to 64,000 sf, results in an economic impact of about $ 5 million in both cost increases and lost revenue. This is equivalent to a $916 per square foot loss based on current market conditions. An economic impact of $5 million to our project now would mean that revenue would no longer be available to fund quality items around the building (e.g., stone removal, pavers to asphalt, pavers to concrete, etc. and other design features. The lost revenue also means: • No shuttle would be provided • Less Landscaping • Other potential changes in design of the building and materials Moreover, the additional costs associated with the existing site constraints and site improvements that LP Acquisitions is already making to accommodate the on-site construction staging and parking areas, enhanced roadway access, pedestrian and bicycle facilities, free after-business-hours surface parking and open space amenities will impose additional construction and development costs thereby hindering the market to which we will be able to competitively lease the space. For these reasons, the 64,000 square foot alternative is economically infeasible. Please feel free to contact me if you have any questions. Thank you for your assistance. Sincerely, Shane Arters Principal & COO VIEW FROM NE OF PROJECT SITE LOOKING WEST FOR PROPOSED 70,000 S.F. BUILDING - INITIAL LANDSCAPE PLANTING VIEW FROM SE OF PROJECT SITE LOOKING WEST FOR PROPOSED 70,000 S.F. BUILDING - 7 YEAR LANDSCAPE GROWTH NO STREET TREES SHOWN PER MAYOR REQUEST L o s G a t o s S a r a t o g a R o a d A l b e r t o W a y H i g h w a y 1 7 O n - R a m p E x i s t i n g D r i v e A i s l e Ex i s t i n g t o R e m a i n Existing to Remain Ex i s t i n g t o R e m a i n B i k e L a n e B i k e L a n e A l b e r t o W a y Large evergreen trees - Live Oaks Limit of garage below Formal row of evergreen trees at edge of amenity space Vines planted on existing wall Large amenity / flex space over garage podium with enhanced concrete paving, seat wall, Colonnade and shade umbrellas Curved concrete wall that rises from seat wall height to fountain wall height Flowering Cherry Trees enclose amenity patio and create buffer to garage ramp Seating areas with fire pits Curved low fountain pool with cascading waterfall Row of narrow upright evergreen screen trees Row of accent trees in tree grates Trees, shrubs, and vines to screen the trash enclosure Separated street sidewalk with parkway strip between street and sidewalk Stormwater treatment in raised planter Stormwater treatment Existing trees in Cal Trans right of way to remain Aerial View L o s G a t o s S a r a t o g a R o a d A l b e r t o W a y PROJECT NO: DATE DESCRIPTION The "user(s)" in possession of this documentation acknowledge(s) that ARC TEC's and ARC TEC consultants' drawings, specifications, reports, electronic data and other documentation are instruments of service. ARC TEC and ARC TEC consultants shall be deemed the author and owner of such documentation. The "user(s)" in possession of this documentation shall not sue or authorize any other person to use ARC TEC's or ARC TEC consultants' instruments of service. Reuse without ARC TEC's written authorization will be at the user(s) sole risk and without liability to ARC TEC and ARC TEC's consultants. The user(s) possessing this documentation shall indemnify and hold harmless ARC TEC and ARC TEC's consultants and agents and employees from and against all claims, damages losses and expenses, including but not limited to attorneys' fees, arising out of unauthorized reuse of ARC TEC or ARC TEC's consultants instruments of service. Written dimensions on this drawing shall have precedence over any scaled dimension. DO NOT SCALE THIS DRAWING for accurate dimensions and notify ARC TEC of any discrepancies. © Copyright ARC TEC, Inc. 2015 In Association with: A P l a n n i n g A p p l i c a t i o n f o r : 40 5 A L B E R T O W A Y LO S G A T O S , C A 9 5 0 3 2 KLA 15-1726 05.15.15 PRELIM PLANNING SUBMITTAL 07.23.15 PLANNING SUBMITTAL 10.05.15 PLANNING RESUBMITTAL 02.05.16 PLANNING RESUBMITTAL 02.19.16 PLANNING RESUBMITTAL 02.08.17 PLANNING RESUBMITTAL 03.09.17 PLANNING RESUBMITTAL 11.07.17 PLANNING RESUBMITTAL 11.17.17 PLANNING RESUBMITTAL PRELIMINARY LANDSCAPE PLAN Vine covered trash enclosure Clear vision triangle - plants to be less than 36" in height with trees pruned above 7'-0" typ. Exercise equipment and synthetic lawn for active recreation area Sidewalk connection to street Enclosure fence with gate Table tennis and other game tables at outdoor patio PROPOSED BUI L D I N G EXISTING BUIL D I N G S OVERLAY SITE PL A N L E G E N D