REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute Agreements with Tasman East Station Holdco, LLC for the Construction of Park Improvements and the Maintenance of the Parks located at 5123 Calle de Sol within the Tasman East Specific Plan Area at the Developer’s Sole Cost
Report
COUNCIL PILLAR
Enhance Community Sports, Recreational and Arts Assets
Enhance Community Engagement and Transparency
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In July 2014, the City Council adopted Ordinance No.1937, adding Chapter 17.35 “Park and Recreational Land” to the Santa Clara City Code (SCCC). The purpose of City Code Chapter 17.35 is to help mitigate the impacts of new housing development growth on existing parkland and recreational facilities pursuant to the provisions of the State of California Quimby Act (Quimby) and/or the California Mitigation Fee Act (MFA). New residential developments are required to dedicate developed park and recreational land and/or pay a fee in-lieu of parkland dedication.
On November 13, 2018, the City Council adopted the Tasman East Specific Plan (TESP) (Attachment 1), providing detailed land use and development guidelines for future projects proposed inside the 45-acre specific plan area boundaries.
On July 17, 2019, the Architectural Review Committee approved a development application located within the TESP area at 5123 Calle del Sol to construct:
(1) Three hundred eleven (311) apartment units, private recreational amenity space, public retail space, and parking on 1.87 acres (the “Parcel 19 Project”)
(2) One hundred and ninety-two (192) apartment units, private recreational amenity space, public retail space; and
(3) Parking on 0.75 acres (the “Parcel 29 Project”) (both parcels collectively, “Project”)
The Project site is within the Station District of the TESP, and is bounded by Calle de Luna to the north, Calle del Sol to the west, and Tasman Drive to the south.
The Project will meet its parkland dedication requirements of 2.8506 acres as follows:
1. For the Parcel 19 Project:
a. Construction of a 0.109-acre mini park and fee title dedication to the City;
b. Provision of 0.6422 acres of private recreational amenities; and
c. Payment of a $5,591,446 in-lieu fee in conformance with City Code Chapter 17.35 (already paid in April of 2022).
2. For the Parcel 29 Project:
a. Construction of a 950 sq. ft. mini park plaza and dedication in fee title to the City;
b. Provision of 0.2836 acres of private recreational amenities; and
c. Payment of a $3,825,837 in-lieu fee in conformance with City Code Chapter 17.35 by on or before April of 2030 or upon issuance of the first building permit for Parcel 29.
This item requests Council consideration and approval of the park construction and maintenance contracts necessary to implement certain aspects of the Project’s overall park requirements.
DISCUSSION
In conformance with the City Code and TESP, the City and Tasman East Station Holdco, LLC (Developer) negotiated the following:
1. Parkland Agreement (Attachment 2): This agreement sets the terms and conditions for the construction of the park and private recreational amenity improvements, acceptance of the parks according to the Architectural Review Committee approved schematic design, and dedication of the park to the City. Key provisions of the Parkland Agreement include:
a. Construction of park improvements in the amount of $399,921 for the mini park with the Parcel 19 Project and park improvements in the amount of $79,984 for the mini park plaza with the Parcel 29 Project;
b. Construction of private recreational amenity improvements for which credit will be provided in the amount of $1,178,116 with the Parcel 19 Project and in the amount of $520,355 with the Parcel 29 Project;
c. Confirmation that if Developer has not pulled building permits for the Parcel 29 Project within eight (8) years of the building permit issuance for the Parcel 19 Project (April 18, 2022), Developer shall pay $1,178,116 to the City, which is the value of the Parcel 19 Project private recreational amenity improvements credit;
d. Council-approved mini park and mini park plaza schematic designs; and
e. Obligation to transfer fee title for both the mini park and the mini park plaza to the City.
2. Park Maintenance Agreement (Attachment 3): This agreement sets the terms and conditions for the maintenance of the dedicated public parks. Key provisions of the Park Maintenance Agreement include:
a. Responsibility of Developer to provide the labor, supervision, equipment, and materials necessary to maintain the mini park and the mini park plaza in accordance with City standards as defined in the Agreement;
b. Obligation for the maintenance services, including utilities, to continue for the life of the park, by Developer. The maintenance period is defined as the period commencing the date of the City’s acceptance of dedicated parklands and continuing in perpetuity; and
c. Option for the City to conduct periodic performance reviews upon City’s request.
Both parties acknowledge that for the duration of the Park Maintenance Agreement, the parklands will remain public parks operated, controlled, and managed solely by the City, with hours of operation set by the City.
ENVIRONMENTAL REVIEW
The Environmental Impact Report (EIR) for the TESP which included the construction of parks was approved on November 13, 2018 (Resolution No. 18-8623), pursuant to the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.).
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
There is no General Fund fiscal impact other than staff time that is budgeted in the Parks and Recreation Operating Budget for minor administrative tasks related to the operation of the Mini Park as part of the City’s overall park system. In conformance with the TESP and the terms of the proposed Parkland Agreement and Park Maintenance Agreement, Tasman East Station Holdco, LLC (Developer) will design, construct, dedicate to the City, and maintain the Mini Park and Mini Park Plaza, at its sole expense for the life of the park, expiring upon mutual written consent of all parties.
In addition, the City will receive Mitigation Fee Act (MFA) funds from the Developer in the amount of $5,591,446 for the Parcel 19 Project and will receive $3,825,837 for the Parcel 29 Project, which will be allocated to the Parks and Recreation Capital Fund once submitted.
COORDINATION
This report has been coordinated with the City Attorney’s Office, the Community Development Department, the Finance Department, and the City Manager’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute the Parkland Agreement and the Park Maintenance Agreement with Tasman East Station Holdco, LLC on substantially the terms and in the forms presented, with such minor, non-substantive changes and amendments that may be necessary to implement the project, in final forms approved by the City Attorney.
Staff
Prepared by: Gina Saporito, Staff Analyst
Reviewed by: Cynthia Bojorquez, Assistant City Manager and Acting Director of the Parks & Recreation Department
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Tasman East Specific Plan Excerpts
2. Parkland Agreement with Tasman East Station Holdco, LLC
3. Park Maintenance Agreement with Tasman East Station Holdco, LLC