REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute Agreements with 3255 Scott Boulevard, LLC et al. for the Construction of Park Improvements and the 40 Year Maintenance of Parks within Santa Clara Square
Report
BACKGROUND
In July 2014, Council adopted Ordinance No.1937 adding Chapter 17.35 “Park and Recreational Land” to the Santa Clara City Code (SCCC) requiring new residential developments to provide developed park and recreational land, and/or pay a fee in-lieu pursuant to the Quimby Act and/or the Mitigation Fee Act (MFA) to address the impacts of the new residential population on existing City parks and recreation infrastructure.
On January 12, 2016, Council adopted Ordinance No. 1948 which approved a Development Agreement (DA) with the Irvine Company for the Santa Clara Square Mixed Use project (Project). On February 12, 2016 the DA was recorded in Santa Clara County and indicated the City’s intent to accept public parks and trails. The Project application was submitted under the provisions of MFA. Based on the City’s then current MFA standard of 2.53 acres of parkland per 1,000 residents and the Project’s estimated 4,122 new residents, the Project will meet its parkland requirement of 10.4276 acres developed parks through the construction and dedication of the 4.14 acres of a public neighborhood park (Core Park), public mini park (Creekside Park), and public trail easement (Redwood Trail), and a trail connection as well as separately through the provision of over 2.67 acres of private recreational amenities (credited at 50% value per SCCC17.35.070), and payment of a fee of approximately $14,696,000 in lieu of the remaining parkland dedication owed in conformance with SCCC17.35.
DISCUSSION
Pursuant to the DA, the City and the owners of the parcels on which the Project is located, 3255 Scott Boulevard, LLC, 3265 Scott Boulevard, LLC, and Scott Boulevard Apartments, LLC (Developer) negotiated:
1. a Park Improvement Agreement (Attachment 1) to set the terms and conditions for the construction and acceptance of the parks according to the Council approved schematic design and phasing plan; and,
2. a Park Maintenance Agreement (Attachment 2) to set the terms and conditions of the 40 year maintenance of the parks.
The key terms of the proposed Park Improvement Agreement includes:
• construction of park and trail improvements in the amount of $1.775 Million,
• the Council approved schematic designs and phasing plan,
• transfer of title to City for Meadow Park (1.86 acres), Creekside Park (0.89 acres) and dedication of Public Park Easements A, B, and C for Redwood Trail (1.216 acres).
The key terms of the proposed Park Maintenance Agreement includes:
• Developer to provide maintenance of parks and trail for a 40 year period subject to City specifications and requirements similar to other City parks
• Developer responsibility for all maintenance costs pursuant to the Agreement,
• Periodic performance reviews upon City’s request, and
• Operation of the public parks by the City consistent with SCCC and similar to other City parks.
The Developer is expeditiously moving forward with the Santa Clara Square Project and anticipates the public parkland will be completed no later than 6 months after issuance of the Certificate of Occupancy for the last residential building, which is expected by early 2020.
ENVIRONMENTAL REVIEW
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. In addition, the Environmental Impact Report (EIR) for the Santa Clara Square Residential/Mixed-Use Project which included the construction of parks, was approved on December 15, 2015 (Resolution No. 15-8270), pursuant to the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.).
FISCAL IMPACT
There is no fiscal impact to the General Fund for 40 years. In conformance with the Development Agreement and the terms of the proposed Park Improvement Agreement, Developer is required to construct and dedicate Core Park, Creekside Park, Redwood Trail easement, and a trail connection at its sole expense in the estimated capital amount of over $1,775,000. After the expiration of the agreement there may be some cost to the City General Fund for maintenance of 4.14 acres of parkland, unless the City and Developer agree to extend the term or develop a new maintenance agreement. Current cost to maintain public parks in the City is approximately $30,000 per acre.
COORDINATION
This report has been coordinated with the City Attorney’s Office, Finance Department, Community Development Department, and 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 Park Improvement Agreement and the Park Maintenance Agreement with 3255 Scott Boulevard, LLC et al., and to make minor, non-substantive changes as necessary.
Staff
Prepared by: James Teixeira, Director of Parks & Recreation
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Park Improvement Agreement with 3255 Scott Boulevard, LLC et al.
2. Park Maintenance Agreement with 3255 Scott Boulevard, LLC et al.