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HomeMy WebLinkAbout8.2 Project Clover (IKEA) Report19- - 182 `O`�LIFOU�� DATE: TO: FROM: SUBJECT STAFF REPORT CITY COUNCIL March 15, 2016 Honorable Mayor and City Councilmembers CITY CLERK File #600 -30 Christopher L. Foss, City Manager J Project Clover (IKEA) Status Report and Consideration of a Consulting Services Agreement for CEQA services (PLPA- 2016 - 00016) Prepared by Kristi Bascom, Principal Planner EXECUTIVE SUMMARY: The City Council will receive an overview of a new retail shopping center proposed for the 27.5 - acre site formerly known as "The Green ", south of Martinelli Way between Arnold Road and Hacienda Drive. The proposed project, currently referred to as "Project Clover', is proposed to be comprised of a 377,479- square -foot IKEA retail store, a 75 -room hotel or 16,400- square -foot retail building (either one or the other), and three additional buildings with up to 19,600 square feet of retail and restaurant uses. The City Council will also consider approving a Consulting Services Agreement with FirstCarbon Solutions (FCS), an environmental consulting firm, to prepare a Supplemental Environmental Impact Report (SEIR) for the proposed project. The SEIR shall be completed in accordance with the California Environmental Quality Act, for an amount not to exceed $377,850 (project budget amount of $343,500 plus additional 10% contingency fund to be spent only with authorization of the City). FINANCIAL IMPACT: There is no financial impact to the City. All costs associated with the contract to prepare the Supplemental Environmental Impact Report, if authorized by the City Council, would be borne by the Applicant. The tasks described in the Scope of Work will not begin until the Applicant has funded the developer deposit account to pay the cost of the contract. RECOMMENDATION: Staff recommends that the City Council receive the project overview and adopt the Resolution Approving a Consulting Services Agreement with FirstCarbon Solutions (FCS) to Prepare a Supplemental Environmental Impact Report for the Project Clover (IKEA) Retail Center and Authorizing the City Manager to Sign the Agreement on Behalf of the City. Submitted By Reviewed By Community Development Director Administrative Services irector Page 1 of 4 ITEM NO. 8.2 DESCRIPTION: The vacant 27.5 -acre project site is located at the southwest corner of Hacienda Drive and Martinelli Way (Figure 1 below). The project site has General Plan and Eastern Dublin Specific Plan land use designations of "General Commercial ". The land use designation accommodates a range of regional and community serving retail, service, and office uses. The site has Planned Development Zoning (Ordinance 34 -08). The existing Planned Development Zoning District was approved in 2008, and allows the development of a 305,000- square -foot commercial center. Entitlements for several previous projects have been considered for this property, including the original IKEA project approved by the City Council in 2004, which permitted the development of a 317,000- square -foot IKEA store on the westerly portion of the site and a 137,000- square -foot retail shopping center on the easterly portion of the site. Construction of the project did not proceed. In 2008, the property owners proposed a different commercial project on the site, which was a 305,000- square -foot retail center. Referred to as "The Green on Park Place," the project was expected to be anchored by a grocery store and have several other larger retail tenants. Due to the timing of the project at the beginning of the economic downturn, this project did not move forward either. Lastly, in 2013, the property owners filed an application for a General Plan and Eastern Dublin Specific Plan amendment to allow a mixed -use (commercial and residential) project on the site. "The Green" project proposal was for up to 400 medium - high density residential units and up to 40,000 square feet of retail and restaurant uses. The City Council did not approve the request when it was presented in 2014, and the project did not move forward. Figure 1: Vicinity Map W�1' ' , U_ , * 4 F� Martinelli Way Project Site ■ ;.:� Page 2 of 4 R: Greenberg Farrow Architects has submitted a pre - application for a retail shopping center that would be anchored by an IKEA store and would include four additional buildings with yet- to -be- named tenants. The pre - application includes the following proposed buildings: • 377,479- square -foot IKEA store; • 3,600- square -foot retail building; • 8,000- square -foot retail building; • 8,000- square -foot restaurant building; and • 75 -room hotel or a 16,400- square -foot retail building. The preliminary site plan is included as Attachment 1 to this Staff Report for reference purposes. A detailed review of the proposed project has not yet begun, and will commence when the Applicant proceeds with filing a formal application, which is expected to occur in the near future. However, the proposed retail commercial, restaurant and hotel uses appear to be consistent with the General Plan /Specific Plan land use designation of General Commercial. Therefore, it is not anticipated that the proposed project would require any amendments to the General Plan or Eastern Dublin Specific Plan. Future project applications are anticipated to include a Planned Development Zoning Stage 2 Development Plan, Site Development Review Permit, Tentative Map to divide the site into smaller parcels, a Master Sign Program, and a Supplemental Environmental Impact Report. These future entitlements would require public hearings and review and approval by the Planning Commission and City Council. In order to begin the environmental analysis of the proposed project, Staff prepared a Request for Proposals (RFP) to solicit a qualified consultant to prepare a Supplemental Environmental Impact Report (SEIR). FirstCarbon Solutions (FCS) submitted a proposal that Staff reviewed. After engaging with FCS in a discussion about the work tasks, schedule, and corresponding budget, Staff is recommending approval of the consultant group and the Scope of Work. The cost of the contract with FirstCarbon Solutions to prepare the SEIR is not to exceed $377,850 (project budget amount of $343,500 plus additional 10% contingency fund to be spent only with authorization of the City). This budget figure covers the preparation of the Supplemental Environmental Impact Report as described in the Scope of Work (Exhibit A to Attachment 2). The Resolution (Attachment 2) approving the Agreement contains a provision to allow an additional 20% increase to the scope and budget, should the City and Applicant agree that additional tasks are necessary to successfully complete the SEIR. The consultant team has provided a complete list of all public and private clients for which FCS is currently working, which is shown on pages 28 -32 of the proposed scope of work (Exhibit A to Attachment 2). The cost to prepare the SEIR, as described in the Scope of Work, will be wholly paid for by the Applicant (including any scope /budget increases agreed to by the Applicant). The development of the Supplemental Environmental Impact Report is expected to take approximately twelve months. Adherence to this timeline assumes that the Applicant will work closely with the City to reach key milestones throughout the project's duration. Page 3 of 4 During the processing of the requested entitlements and preparation of the SEIR, Staff will schedule a Study Session with the Planning Commission and provide a project update to the City Council. NOTICING REQUIREMENTS /PUBLIC OUTREACH: Although a public notice is not required to receive a project update or approve a Consultant Services Agreement, City Staff published and mailed a courtesy notice to all properties with 1,000 feet of the project site notifying them of this pubic meeting. Because the 1,000 foot radius touched a portion of both the Esprit townhome development and the Archstone apartments on the northeast corner of Dublin Blvd. and Hacienda Drive, notices were sent to all residents and owners within the entire development. ATTACHMENTS: 1. Preliminary Site Plan 2. Resolution Approving a Consulting Services Agreement with FirstCarbon Solutions (FCS) to prepare a Supplemental Environmental Impact Report for the Project Clover (IKEA) Retail Center and Authorizing the City Manager to Sign the Agreement on Behalf of the City (Consulting Services Agreement and Scope of Work attached as Exhibit A) Page 4 of 4 RESOLUTION NO. xx-16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN _____________________________________________________ APPROVING A CONSULTING SERVICES AGREEMENT WITH FIRST CARBON SOLUTIONS TO PREPARE A SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT FOR THE PROJECT CLOVER (IKEA) RETAIL CENTER AND AUTHORIZING THE CITY MANAGER TO SIGN THE AGREEMENT ON BEHALF OF THE CITY WHEREAS, Greenberg Farrow Architects submitted a pre-application for the development of a new retail center on 27.5 acres in the Easter Dublin Specific Plan area at the intersection of Hacienda Drive and Martinelli Way; and WHEREAS, City Staff solicited bids from qualified consultants to prepare the necessary environmental documentation in accordance with the California Environmental Quality Act (CEQA) to analyze the impacts of the proposed project, which, in concept, will be comprised of a 377,479 square foot IKEA retail store, a 75-room hotel or 16,400 SF retail building (either one or the other), and three additional buildings with up to 19,600 square feet of retail and restaurant uses; and WHEREAS, FirstCarbon Solutions prepared a detailed scope of work and fee proposal to prepare a Supplemental Environmental Impact Report for the proposed project that was best suited to the needs of the project; and WHEREAS , FirstCarbon Solutions has shown that they have the ability to perform the planning and environmental consulting services required; and WHEREAS , a budget not to exceed $377,850 (project budget amount of $343,500 plus additional 10% contingency fund to be spent only with authorization of City) has been established for the Supplemental Environmental Impact Report. Furthermore, in the event that both the City and the Applicant agree that additional tasks are necessary to successfully complete the SEIR, the City Council authorizes the City Manager to approve an increase to the scope and budget not to exceed 20%; and WHEREAS , FirstCarbon Solutions will perform the work outlined in the Scope of Work and Fee Proposals once the contract is executed and once the Project Applicant has funded the Developer Deposit Account to complete the work described in the Scope of Work; and WHEREAS , all costs associated with the preparation of the Supplemental Environmental Impact Report shall be borne by the Applicant; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does authorize the City Manager to execute a Consulting Services Agreement with FirstCarbon Solutions, attached hereto as Exhibit A to prepare a Supplemental Environmental Impact Report for a fee not to exceed $377,850 (project budget amount of $343,500 plus additional 10% contingency fund to be spent only with authorization of City). th PASSED, APPROVED AND ADOPTED this 15 day of March, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: __________________________________ Mayor ATTEST: City Clerk Project Clover/IKEA Status Report CEQA Consulting Services Agreement City Council March 15, 2016 Project Site Hacienda Crossings Transit Center BART garage SAP Persimmon Place Boulevard (Dublin Crossing) Project Summary Development of the site may include: •377,479 square foot IKEA retail store •Four additional pad buildings for retail, restaurant, potential hotel No formal application on file. Future project applications will be: •Stage 2 Development Plan (PD Rezoning) •Site Development Review (site and architectural approval) •Tentative Map to divide site into multiple commercial parcels Staff will schedule a Study Session with the Planning Commission at some point later this year and also provide a status update to the City Council. Further Details •The Applicant will fund the costs of the CEQA work. Dublin’s “cost recovery” approach to processing development applications ensures that the Project Proponent covers both the direct costs for contracts and staff time. •No project approvals granted. Authorizing a firm to prepare an environmental document in no way obligates the City Council to take any particular action on a future project . •City’s Superstore Ordinance does not apply. “Superstore” means a store that exceeds one hundred seventy thousand (170,000) square feet of Gross Floor Area and devotes at least ten (10) percent of the total sales floor area to the sale of non- taxable merchandise. Tonight’s Considerations •State law requires that an environmental impact analysis be completed for new projects in many circumstances. Beginning this work is usually the first step in the process. •City Staff does not have the expertise to complete complex technical analyses (e.g. traffic, air quality, etc.) and relies on specific experts for this type of work. •Proposal were solicited for a qualified environmental firm to provide a scope of work and budget to complete the environmental document. •Consideration of the project itself will happen at a later date. Recommendation Staff recommends that the City Council receive the status report on the project and Adopt a Resolution approving a Consulting Services Agreement with FirstCarbon Solutions (FCS) to prepare a Supplemental Environmental Impact Report for the Project Clover (IKEA) Retail Center and authorizing the City Manager to sign the Agreement on behalf of the City.