HomeMy WebLinkAboutItem 7.1 Kaiser Dublin Medical Center Project Update19- - 182
`O`�LIFOU��
DATE:
TO:
FROM:
SUBJECT
STAFF REPORT
CITY COUNCIL
April 19, 2016
Honorable Mayor and City Councilmembers
Christopher L. Foss, City Manager ✓/
Kaiser Dublin Medical Center Project Update
Prepared by Kristi Bascom, Principal Planner
EXECUTIVE SUMMARY:
CITY CLERK
File #420 -10
The City Council will receive a report on the status of the Kaiser Dublin Medical Center project,
which is proposed to be developed on approximately 58 acres of property on the south side of
Dublin Boulevard between Grafton Plaza /Dublin Ranch Water Quality Pond to the west and the
Fallon Gateway Shopping Center to the east.
FINANCIAL IMPACT:
There are no financial impacts related to this informational item. All costs associated with
processing the Application are borne by the Applicant.
RECOMMENDATION:
Staff recommends that the City Council receive the status report on the project. No action is
recommended at this time, but feedback to both Staff and the Applicant on the project as
proposed is welcome.
Submitted By
Community Development Director
DESCRIPTION:
'Reviewed By
Assistant City Manager
Kaiser Foundation Health Plan, Inc. has submitted an application to build a medical campus and
associated commercial center on approximately 58 acres of land south of Dublin Boulevard
between Tassajara Road and Fallon Road. The property currently has a General Plan land use
designation of Campus Office, which allows for the development of a "campus -like setting for
office and other non - retail commercial uses." Typical uses include professional and
administrative offices (including medical), research and development, business and commercial
services, and limited light manufacturing.
Page 1 of 6 ITEM NO. 7.1
The project site is shown in the Vicinity Map below:
Figure 1
Project Vicinity
Future Dublin
Ranch
RanrViltae The Subarea 3
Du blin BlvdFut
Grafton
Plaza
Project
Site
Fallon
Gateway
F
al
to
n
R
0
a
d
Kaiser Permanente acquired the property several years ago with the intent of eventually
constructing a medical campus to serve the greater Tri- Valley area. If approved, the project will
be developed in three phases over the course of up to 25 years, consisting of approximately 1.2
million square feet of medical campus and commercial uses on the project site, as follows:
Page 2 of 6
Size
(in square
Building
Estimated
Building /Use
feet)
Size
Construction
Phase 1A
"The Hub" medical office building with
220,000
3 stories
2016 -2020
advanced facilities including an urgent
< 60 feet tall
care clinic, medical office space, and a
radiation /oncology center
Phase 1 B
Commercial Center
250,000
Up to 4
2016 -2020
stories
60 feet tall
Phase 2
High- Acuity Medical Services building
400,000
5 stories
2025 -2035
(possibly a hospital)
85 feet tall
Phase 2
Energy Center
50,000
2 stories
2025 -2035
40 feet tall
Phase 3
Medical Office Building 2
280,000
6 stories
2035 -2040
90 feet tall
Phase 3
Parking Structure
6 stories
2035 -2040
< 70 feet tall
Total Project
1,200,000
Page 2 of 6
The site plan (at full build -out) is included as Attachment 1 to this Staff Report.
BACKGROUND:
Kaiser has applied for the following land use entitlements:
1. General Plan and Eastern Dublin Specific Plan Amendment
2. Planned Development Rezoning (with approval of a related Stage 1 for the whole site
and Stage 2 Development Plan for Phase 1A)
3. Certification of an Environmental Impact Report
4. Site Development Review for the Phase 1A Medical Office Building and related site
improvements
When the future phases of the project are ready to move forward, Planning applications will
include:
1. Planned Development Rezoning (with a related Stage 2 Development Plan) and Site
Development Review for each future development phase:
a. Phase 1 B — Commercial Center
b. Phase 2 — High Acuity Medical Center and Energy Center
c. Phase 3 — Medical Office Building and parking garage
2. Conditional Use Permit(s) to establish any use that is required by the Planned
Development Zoning District to have one.
3. Vesting Tentative Parcel Map to subdivide the property, dedicate right of way, and
formalize easements
PROPOSED PROJECT:
The proposal for the Kaiser Dublin Medical Center can be described in more details, as follows:
General Plan and Eastern Dublin Specific Plan Amendment
Kaiser is proposing a new land use category for the project site: "Campus Medical ". The
existing land use designation is Campus Office, which allows a variety of office uses (including
medical), but which does not specifically identify the medical - related uses that are typically
found at Kaiser Medical Campuses. The proposed description for this land use category will list
the range of outpatient primary and specialty care services that Kaiser intends to provide at the
future Medical Center. The land use category will also list the type of commercial uses that
could be accommodated in the Phase 1B portion of the site, including uses related to the
medical center such as skilled nursing, assisted living, or licensed care facilities. Other
contemplated uses could be retail, office, hotel, and restaurants.
Planned Development Rezoning
The Planned Development Rezoning for the property will establish the detailed Development
Plan (site plan) for the site, the specific uses that are permitted by right, conditionally permitted,
and prohibited, the overall development density and intensity (e.g. FAR, building heights) for the
site, and design guidelines for the future medical center and commercial buildings. Kaiser is
proposing that the Planned Development Zoning District allow hospitals as a permitted use,
whereas citywide, hospitals are allowed with a Conditional Use Permit. The Planned
Page 3 of 6
Development Zoning District will contain development standards to address the particular issues
related to hospitals such as noise and compatibility with surrounding uses.
Phase 1A Site Development Review
The first phase of the Kaiser Dublin Medical Center is the 220,000 square foot medical office
building. This facility — referred to as "The Hub" — will contain advanced medical facilities,
urgent care clinics, medical office spaces, and a connected radiation /oncology center, along
with surface parking for over 1,000 vehicles and associated site improvements. Several
conceptual exhibits depicting the architectural style and form of The Hub building are included
as Attachment 2 to this staff report. The plans for this Site Development Review permit for The
Hub building are currently under review by Staff.
Environmental Impact Report
A Draft Environmental Impact Report (EIR) was prepared for the Kaiser project and was
circulated for a 45 -day public review period that closed on March 21, 2016. Comments were
received from seven public agencies, in addition to one comment letter from the Project
Applicant, and one comment letter from a Dublin resident that does not support the project. The
EIR examined potential environmental impacts resulting from the project at full build out in the
following topic areas:
• Aesthetics, Light, and Glare
• Air Quality /Greenhouse Gas Emissions
• Biological Resources
• Cultural Resources
• Geology, Soils, and Seismicity
• Hazards and Hazardous Materials
• Hydrology and Water Quality
• Land Use
• Noise
• Public Services and Utilities
• Transportation
In summary, the EIR concludes that the project will have significant impacts in several topic
areas and mitigation measures have been written to reduce the impacts to a level that is less
than significant. These impacts are primarily related to aesthetics, air quality, biology, cultural
resources, geology, hydrology, noise, and transportation.
As is typical for other projects of this size, several other impacts were identified where, even
with the implementation of mitigation measures, the effects to the environment are still expected
to be significant. There are impacts to vehicular traffic at certain street intersections in the
future, notable greenhouse gas emissions, and air pollution impacts that cannot be mitigated.
When the project is considered by the City Council in the future, a Statement of Overriding
Considerations (SOC) will need to be adopted that identifies all environmental impacts that
cannot be mitigated and explain why the project is being approved. The SOC is required in
order to certify the EIR and, if desired by a majority of the City Council, ultimately approve the
project.
Page 4 of 6
Additional Consideration: Fiscal Impact Analysis and Cost to Serve
Most requests for a General Plan and Eastern Dublin Specific Plan Amendment include the
completion of a Fiscal Impact Analysis to determine the fiscal impact of changing the land use
designation. The City initiated a fiscal impact study for the Kaiser project that examined the
revenue and expenditures of the medical center as proposed.
The cost for the City to serve the medical office buildings and high- acuity medical services
building, and the corresponding lack of property tax revenue (due to the nature of the non - profit
ownership of a Kaiser Medical Center) exceeds the revenue to the City that is generated by
these uses. The commercial component is the only portion of the project that has the potential to
create a fiscal benefit to the City. In short, the project will have a net impact/cost to the City on
an annual basis unless the commercial portion of the project is built with uses that provide
revenue in the amount of approximately $300,000 per year, in the form of sales tax and /or
property tax that is attributed to the City. The type of commercial uses, such as large- format
retail and automotive sales, able to generate this amount of revenue is fairly limited and unlikely
to occur in this location. If the revenue produced from the commercial site is less than $300,000,
the project is expected to have a negative fiscal impact to the City on an annual basis. By
contrast, a non - medical campus office development of a similar size could have a net fiscal
benefit to the City of approximately $540,000 annually. However, in weighing the fiscal impact to
the City, the perceived value to the community of having regional medical center should also be
considered.
Additional Consideration: Potential Development Agreement
Development Agreements are the means by which both the City and the Developer receive
certainty for future development on a site as well as the means by which benefits are captured
and formalized. In the case of this project, a Development Agreement would be the place where
the Developer secures long -term approvals for a multi - phased project and where the City
ensures that benefits are provided, whether they are financial contributions (including
contributions to ensure fiscal neutrality), infrastructure improvements, or items meeting other
community needs.
Kaiser's initial application to the City included the request for a 25 -year Development Agreement
in order to allow the Applicant to vest their entitlements for the long term. Kaiser's expected
build -out of the Medical Campus and associated commercial center is anticipated to occur by
2040.
The entitlements that are currently being sought for the whole site are a General Plan /Eastern
Dublin Specific Plan Amendment and Planned Development Rezone (with a Stage 1
Development Plan). A Stage 2 Development Plan and Site Development Review will be
considered for the Phase 1A portion of the project only. This means that Stage 2 Development
Plans and Site Development Review for the remaining phases of the project (Phase 1 B, 2, and
3) will need be considered at a later date when each phase is ready to move forward.
Kaiser has since decided that they do not wish to enter into a Development Agreement for the
site. Therefore, the entitlements granted will be valid only for the minimum time period as
required by the Zoning Code. The Planned Development zoning and General Plan /Eastern
Dublin Specific Plan land use designation for the site will be valid indefinitely or until such time
that the City Council decides to consider a rezoning or amendment to either land use document.
Page 5 of 6
Without a Development Agreement, these approvals are not vested and are open to
reconsideration in the future.
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
Public noticing is not required when providing a project update to the City Council. Although not
required, the City mailed notices to all property owners and tenants within 300 feet of the Kaiser
site and an expanded area beyond 300 feet, as shown below:
i
Figure 2: Public Noticing
_0 -If] r 1- _ ---4- r r--1 r- -' -- ,! . - _I-
Protect Site
The total mailing list was over 2,000 addresses. A copy of this Staff Report was provided to the
Project Applicant.
ATTACHMENTS: 1. Proposed Site Plan (at project buildout)
2. Site and architectural exhibits for Phase 1A
Page 6 of 6
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