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HomeMy WebLinkAboutItem 6.2 Gateway Med Center Planned PD CITY CLERK File # Dl?l][Z][Q]-[d][Q] toofJ-~O AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 15, 2007 SUBJECT: ATTACHMENTS: PUBLIC HEARING: P A 06-026 Dublin Gateway Medical Center Building 3 Hospital and Garage - CEQA Addendum, Planned Development Rezone and Stage 1 and 2 Development Plan, Conditional Use Permit, Site Development Review, and Development Agreement Report prepared by Mamie R. Nuccio, Associate Planner 1) Resolution approving a CEQA Addendum for an amendment to the Stage 1 and 2 Development Plan for Planned Development Zoning District (P A 98-047) and for a Conditional Use Permit and Site Development Review for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Addendum attached as Exhibit A and Statement of Overriding Considerations attached as Exhibit B. Ordinance adopting a Planned Development Rezone and Stage 1 and 2 Development Plan for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Stage 1 and 2 Development Plan attached as Exhibit A. Resolution approving a Conditional Use Permit and Site Development Review for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Project Plans attached as Exhibit A. Ordinance adopting a Development Agreement for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Development Agreement attached as Exhibit A. Proposed amended Stage 1 and 2 Development Plan in draft form with amended text shown in strike-through and underline. April 24, 2007 Planning Commission Meeting Minutes. 2) 3) 4) 5) 6) ------------------------------------------------------------------------------------------------------------- COPY TO: Applicant, Property Owner File Mahendar Chima, Public Works Department Jim Tong Marty Iterbitzen Dave Chadbourne ITEMNO.~ Page 1 of 18 G:\PA#\2006\06-026 Dublin Gateway Bldg 3 Mod\Public Hearing Documents\CC\CCSR 05-15-07.doc ~ . RECOMMENDATION: , ! / P 1Y 7) May 8, 2007 Planning Commission Agenda Statement, without attachments. 8) Draft May 8, 2007 Planning Commission Meeting Minutes, to be provided under separate cover. 9) Planning Commission Resolution 07-23 recommending City Council adoption of a CEQA Addendum for an amendment to the Stage 1 and 2 Development Plan for Planned Development Zoning District (P A 98-047) and for a Conditional Use Permit and Site Development Review for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project. 10) Planning Commission Resolution 07-24 recommending City Council adoption of a Planned Development Rezone and Stage 1 and 2 Development Plan for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project. 11) Planning Commission Resolution 07-25 referring decision making authority and recommending City Council approval of a Conditional Use Permit and Site Development Review for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project. 12) Planning Commission Resolution 07-26 recommending City Council adoption of a Development Agreement for the Dublin Gateway Medical Center Building 3 Hospital and Garage Proj ect. 1) 2) 3) 4) 5) Open the public hearing; Receive Staff presentation; Take testimony from the Applicant and the public; Close public hearing and deliberate; Adopt Resolution (Attachment 1) approving a CEQA Addendum for an amendment to the Stage 1 and 2 Development Plan for Planned Development Zoning District (P A 98-047) and for a Conditional Use Permit and Site Development Review for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Addendum attached as Exhibit A and Statement of Overriding Conditions attached as Exhibit B; Waive the reading and introduce an Ordinance (Attachment 2) approving a Planned Development Rezone and Stage 1 and 2 Development Plan for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Stage 1 and 2 Development Plan attached as Exhibit A; Adopt Resolution (Attachment 3) approving a Conditional Use Permit and Site Development Review for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Project Plans attached as Exhibit A; and Waive the reading and introduce an Ordinance (Attachment 4) approving a Development Agreement for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Development Agreement attached as Exhibit A. 6) 7) 8) Page 2 of 18 FINANCIAL STATEMENT: None. PROJECT DESCRIPTION: BACKGROUND In November 1998, the Planning Commission adopted Resolution 98-51 approving Tentative Parcel Map 7064 and Site Development Review for the Koll Dublin Corporate Center. The Koll Dublin Corporate Center is now known simply as the Dublin Corporate Center and is located west of Tassajara Road between Interstate 580 to the south and Dublin Boulevard to the north within the Eastern Dublin Specific Plan area (Figure 1). In December 1998, the City Council adopted Ordinance 22-98 establishing a Planned Development Zoning District (P A 98-047) and adopted a Stage 1 and 2 Development Plan for the Koll Dublin Corporate Center. The Ordinance and Development Plan, together with the Planning Commission approvals, established the land uses and development standards for the Dublin Corporate Center. Figure 1. Dublin Corporate Center Vicinity Map Dublin Blvd T assaj ara Rd Glynnis Rose Dr Westbound 1-580 On-ramp Original Dublin Corporate Center Approvals In 1998, the Dublin Corporate Center was originally proposed to be developed in the following multiple phases (see Table 1 on page 4): Page 3 of 18 . Phase I - Professional Office Buildings: three 4-story office buildings for a combined total of 417,855 square feet. . Phase II - Signature Office Building: one 6-story office building at 178,849 square feet. · Phase ill - Hotel and Retail: one 6-story hotel at 85,000 square feet and 14,000 square feet of retail. osal for Dublin Cor orate Center Develo IDent Phase I: 1 Office 4 139,285 Professional Office 1 Office 4 139,285 Buildin s 1 Office 4 139,285 Phase II: Signature Office 1 Office 6 178,849 Buildin Phase ill: Hotel 6 85,000 Hotel and Retail Retail 1 14,000 417,855 178,849 99,000 695,704 Subsequent Development and Approvals for Dublin Corporate Center Subsequent to the original 1998 approvals, the three Phases of the Dublin Corporate Center development have evolved to meet changing market conditions. A summary of the changes to each Phase are described below. Phase I - Professional Office Buildings Constructed as Planned Phase I was constructed in 2000-2001 as originally proposed and includes three 4-story professional office buildings totaling approximately 417,855 square feet. These buildings are currently occupied by a variety of professional office uses including Avaya, Inc., Compass, Development Dimension International, Kronos, Supergen, Ellie Mae, Long Beach Mortgage, and Taleo, to name a few. Phase II - Signature Office Building changed to Dublin Gateway Medical Center Phase II of the Dublin Corporate Center was approved in 2005 for the development of the Dublin Gateway Medical Center. The approvals for the Dublin Gateway Medical Center include the following: two 3-story medical office buildings; one 3-story lifestyle/wellness center (indoor recreational facility); and a 4-level above ground parking garage (see Table 2). The Dublin Gateway Medical Center was approved to be developed in two Phases (Phase One and Phase Two). Phase Two was approved to be developed in sub- phases [Phase Two (a) and Phase Two (b)] to ensure construction of the parking garage prior to construction of the third medical office building. Construction of Phase One (two 3-story medical office buildings at the southeast comer of Dublin Boulevard and Tassajara Road) was completed in January 2007. Page 4 of 18 Table 2. 2005 Dublin Gateway Medical Center Approvals (Phase II of the Dublin Corporate Center USE Phase One 120,000 58,000 The original 1998 approval for the Dublin Corporate Center anticipated the development of one 6-story signature office building on the Dublin Gateway Medical Center site. However, in 2005, due to changes in market conditions, the developer sought approval for medical offices instead of professional offices. The 2005 approvals reflected approximately the same total square footage, but modified the building footprint and added a parking garage where surface parking was previously proposed. During the review of the construction drawings for Phase One of the Dublin Gateway Medical Center, the Lifestyle/Wellness Center building was modified from two full floors and a partial third floor (to accommodate an indoor basketball court) to three full floors for medical offices. As a result of this modification, the Lifestyle/W ellness Center building increased in square footage from 62,300 square feet to 65,295 square feet. Phase III - Hotel and Retail Changed to Bank and Retail A portion of Phase ill of the Dublin Corporate Center was constructed in December 2004 with the development of a 6,100 square foot bank (Bank of America). On August 24, 2004, the Planning Commission approved the remainder of Phase III which includes 50,530 square feet of retail (Ulferts Center) (see Table 3). orate Center Develo IDent as of 2005 STATUS 1 Office All 3 buildings constructed 4 139,285 1 Office in 2000-2001 4 139,285 1 Office 4 139,285 1 Medical Office 2 medical office buildings 3 57,786 1 Medical Office constructed in 2007; 3 65,295 1 Medical Office remainder pending 3 58,000 1 Parking Garage approval of the alternate 4 n/a a roval re uest 1 Bank Bank constructed in 2004; 1 6,100 1 Retail Retail under construction 2 50,530 and nearin com letion Phase I 417,855 Phase II 181,081 Phase III 56,630 The original 1998 approval for the Dublin Corporate Center anticipated the development of a hotel in Phase ill; however, due to changes in market conditions the developer sought approval for the development of commercial shopping center instead. Consequently, the original 1998 approval for Phase Page 5 of 18 ill of 99,000 total square feet for a hotel and retail (see Table 1 above) has been reduced to a total of 56,630 square feet for a bank and retail. ANALYSIS: As noted above, Phase II of the Dublin Corporate Center is now known as the Dublin Gateway Medical Center; the Dublin Gateway Medical Center has also been approved to be developed in two phases, Phase One and Phase Two. Phase One is comprised of two, 3-story medical office buildings totaling 123,081 square feet; Phase Two was approved in 2005 by the Planning Commission (Resolution 05-06) for the development of one, 3-story medical office building totaling 58,000 square feet and a 4-level parking garage on 3.13:t acres ofland (the "Original Approval"). The Applicant is now requesting approval for an alternative Project for Phase Two, which proposes the development of a 6-story, 168,000 square foot, 100- bed hospital and a 5-level parking garage with 1 level below ground and 4 levels above ground on the same 3.13:t acres of land (see Figure 2 and Table 4 below). The current Project includes a California Environmental Quality Act (CEQA) Addendum, Planned Development Rezone with amended Stage 1 and 2 Development Plan, a Conditional Use Permit, Site Development Review and a Development Agreement. The Project would provide the Applicant with the option of constructing the Original Approval (a 3-story medical office building and 4-level parking garage) or the Project (a 6-story, 100-bed hospital building and 5-level parking garage) as Phase Two of the Dublin Gateway Medical Center for the life of the Original Approval and the Project entitlements. Figure 2. Dublin Gateway Medical Center Project Site DUBLIN BOULEVARD EXISTiNG PfWiEI 3STO"'lY """ 66c.mSJ'. ~ ~ <>: ~ ~ "i Vj ~ roval for Phase Two of the Dublin Gatewa F S Phase One Medical Office Medical Office Parking Garage 1 1 1 3 3 4 above ground 1 below ound 6 57,786 65,295 nla 123,081 Phase Two (a) 168,000 291,081 Page 6 of 18 PLANNED DEVELOPMENT REZONE AND STAGE 1 AND 2 DEVELOPMENT PLAN The 1998 Stage 1 and 2 Development Plan adopted for the Dublin Corporate Center anticipated the development of one 6-story, 168,000 square foot signature office building on the southwest comer of Dublin Boulevard and Tassajara Road. The building was planned to be served by surface parking. In 2005, due to changes in market conditions, the developer sought approvals for two 3-story medical office buildings, a 3-story Lifestyle/Wellness Center and a 4-level above ground parking garage rather than the 6-story signature office building with surface parking. While the 2005 approval included a modified site layout from what was anticipated in the 1998 Stage 1 and 2 Development Plan for the Dublin Corporate Center, the modifications to the site layout were determined to be in substantial conformance with the Stage 1 and 2 Development Plan because the total square footage of the project remained the same. The current Project proposes an additional 114,000 square feet above and beyond what was previously anticipated in the 1998 Stage 1 and 2 Development Plan and therefore an amendment to the Development Plan is necessary. The proposed amendments to the Development Plan include an increase in the density on Lot 7 of Tract 7064 from approximately 178,000 square feet to approximately 292,000 square feet; Lot 7 is the entire :t7.14-acre Dublin Gateway Medical Center project site. Also included in the proposed amendments is a provision which allows for the construction of the 3-story medical office building approved in 2005 or the 6-story, 100-bed hospital building. This provision provides flexibility to the developer to construct either project depending upon market conditions (see Attachment 5 for the draft version of the amended Development Plan; see Exhibit A to Attachment 2 for the clean version). The amendments will also reflect the new site layout, landscaping, and development standards for the Project. Also reflected in the amended Development Plan are changes which were previously approved by way of a Conditional Use Permit for the Ulferts Center and the 2005 approval for the Dublin Gateway Medical Center. By incorporating these changes into the amended Development Plan, the Development Plan will reflect all actions taken on projects within the Dublin Corporate Center in one document. CONDITIONAL USE PERMIT The Stage 1 and 2 Development Plan adopted for the Dublin Corporate Center includes a list of permitted and conditionally permitted uses for the Project site. A hospital/medical center is a conditional use and as such requires approval of a Conditional Use Permit. On May 8, 2007, the Planning Commission adopted a Resolution referring their decision making authority to the City Council (see Attachment 11). The proposed 100-bed hospital is an appropriate use for the site because it would be located adjacent to existing medical office buildings and along major thoroughfares including Dublin Boulevard and Tassajara Road. The hospital is also in close proximity to the Interstate 580/Tassajara Road interchange which provides convenient access to the site from within the Tri-Valley region. The hospital use would include 100 patient beds and an emergency room. The hospital and emergency room would be operational 24 hours a day, 7 days a week. A drop-off and pick-up area is designated at the main entrance to the hospital which is internal to the site. The entrance to the emergency room is just east of the main hospital entrance and ambulance arrivals would occur on the east side of the building across from the existing medical office building which is currently occupied by Palo Alto Medical Foundation. Noise associated with ambulances arriving at the emergency room would not negatively impact the site or adjacent properties because warning sirens are expected to be turned off upon entering the site. Additional analysis on noise impacts are discussed on page 12 in the section titled Environmental Review. Page 7 of 18 The hospital is estimated to have 75 doctors and 450 employees. Dublin Zoning Ordinance Chapter 8.76, Off-Street Parking and Loading Regulations, requires the following for a hospital use: . 1 parking space for every 3 beds . 1 parking space for every 3 (non-doctor) employees on the largest shift . 1 parking space for each doctor (on the largest shift) The Project proposes to provide 100 beds, 150 employees on the largest shift and 25 doctors on the largest shift for a total parking requirement of 108 spaces. In calculating the required number of parking spaces, the number of employees on the largest shift does not include doctors; therefore, in calculating the required number of parking spaces for doctors, the number of doctors on the largest shift was used. The parking garage would provide 512 parking spaces and an additional 172 surface parking spaces would be provided throughout both Phase One and Phase Two of the Dublin Gateway Medical Center (36 of the surface parking spaces are located on the south side of Koll Center Drive, but are within the property boundaries of the Dublin Gateway Medical Center and therefore are counted towards the total parking for the Project). The total amount of parking provided would be 684 spaces which includes 17 motorcycle spaces. All parking spaces, both surface parking and structured parking, would be shared between Phase One and Two of the Dublin Gateway Medical Center. Currently, the two existing medical office buildings are surface parked; the majority of this surface parking would be incorporated into the parking structure as part of Phase Two of the Project. A parking ratio of 1 space for every 250 square feet of gross floor area was used to calculate the required parking for Phase One (123,081 square feet of medical offices) and results in a total parking requirement of 492 spaces. The Dublin Zoning Ordinance requires 1 space for every 150 square feet of gross floor area for Health Services/Clinics and 1 space for every 350 square feet of gross floor area for Professional Offices greater than 40,000 square feet. The definition of Health Services/Clinics and Professional Offices both include medical uses therefore a ratio of 1 space for every 250 square feet of gross floor area was used as a mid-point calculation. The required parking for the proposed hospital in Phase Two would be 108 spaces; combined with the 492 spaces required for Phase One, the total parking requirement for the Dublin Gateway Medical Center project would be 600 spaces. As stated above, the total amount of parking proposed would be 684 spaces or 84 more than what is required; therefore, an appropriate amount of parking would be provided for the Project. Table 5. Dublin Gatewa Medical Center Parkin PHASE S 57,786 65,295 1/250 1/250 231 261 Total 492 33 50 25 Total 108 600 684 Phase One Phase Two Hospital 100 beds 1/3 beds 1/3 employees on largest shift 1/doctor on largest shift Total Number ofRe uired Parkin S aces Total Number of Parkin S aces Provided Page 8 of 18 SITE DEVELOPMENT REVIEW Site Lavout (Attachment 3, Exhibit A, Page A1.1) The Project is generally located at the southeast comer of Dublin Boulevard and Glynnis Rose Drive; Phase One of the Dublin Gateway Medical Center and Tassajara Road are to the east of the Project and Koll Center Drive is to the south. The proposed hospital building would be located directly on the southeast comer of Dublin Boulevard and Glynnis Rose Drive and the proposed parking garage would be located south of the proposed hospital on the northeast comer of Glynnis Rose Drive and Koll Center Drive. The Project site is currently developed with surface parking and landscaping as part of Phase One of the Dublin Gateway Medical Center. The proposed Project would not modify the existing vehicular access points to the site which are currently located off ofKoll Center Drive and Glynnis Rose Drive. Access, Circulation and Parking (Attachment 3, Exhibit A) As noted above, the vehicular access points to the Project site are currently located off of Koll Center Drive and Glynnis Rose Drive and are not proposed to be modified as part of the Project. External vehicular and pedestrian access and internal vehicular and pedestrian circulation would remain largely the same with some slight modifications to accommodate the parking garage on the southwestern portion of the site and the enhanced vehicular roundabout off of Glynnis Rose Drive. An extensive discussion on parking is included above in the section titled Conditional Use Permit. In short, the Project, as proposed, meets the parking requirements set forth in Chapter 8.76, Off-Street Parking and Loading Regulations of the Dublin Zoning Ordinance and would provide adequate parking for both Phase One and Phase Two ofthe Dublin Gateway Medical Center. The majority of parking would be provided in the parking garage with some surface parking adjacent to the hospital and medical office buildings. The two vehicular access points to the parking garage would be located on the north elevation and the east elevation. Architecture (Attachment 3, Exhibit A) The 6-story hospital building, located on the southeast comer of Dublin Boulevard and Glynnis Rose Drive, reflects four-sided architecture by utilizing a combination of both vertical and horizontal pre-cast panels on all elevations and introducing aluminum clad canopies on every elevation. To avoid a monotonous repetition of architectural elements and enhance the visual interest of the building, one-story and three-story elements are introduced on each elevation and are strategically placed to relate the building to adj acent structures. The height of the building at its tallest point is 102 feet, 6 inches. The colors, materials, and architectural elements proposed for the hospital building are consistent with those approved for the Phase One medical office buildings which include smooth finish and aggregate pre-cast concrete panels, green tinted glass, and aluminum canopies and fins. What differentiates this building from the existing medical office buildings is the height. At 102 feet, 6 inches, the hospital building makes a strong statement at the comer of Dublin Boulevard and Glynnis Rose Drive. In order to address the perceived massing of the building, horizontal elements draw the eye in a linear direction rather than upward; articulation of the building on the comer at the 5th and 6th floors also contributes to reducing the mass of the building. Additionally, the building has been articulated with architectural elements at varying heights to add visual interest. North Elevation: On the north elevation, which faces Dublin Boulevard, the building includes a curved exterior wall with a combination of colored glass and pre-cast concrete panels. To break up the massing Page 9 of 18 of the building, a 3-story element is introduced on the east end of the elevation and is oriented towards the existing 3-story medical office building. At the first floor on the west end of the north elevation, a I-story element is introduced to tie into the I-story Bank of America building located west of Glynnis Rose Drive and a notch in the comer of the building has been incorporated at the 5th and 6th floors to reduce the mass of the building. Both elements are topped off with an aluminum clad canopy. East and West Elevations: The 3-story element from the north elevation wraps the building onto the east elevation and provides a logical transition to the adjacent 3-story medical office building. Similarly, the one story element from the north elevation wraps the building onto the west elevation to tie into the 1- story Bank of America building. Also on the west elevation is the introduction of another 3-story element to break up the massing of the 6-story building. This element has been strategically placed in order to screen the loading dock area which is parallel to Glynnis Rose Drive. South Elevation: The south elevation, which includes the main entrance to the hospital, faces the parking lot. An aluminum clad canopy covers the entry to the building and provides a single story element along this elevation. On the east and west ends of this elevation, there are 3 story elements which have wrapped around from the east and west elevations. Parking Garage: The 5-level parking garage is generally consistent in colors, materials and architectural details with the parking garage approved in 2005 however a number of enhancements have been made with regards to architectural detailing to create a stronger architectural tie between the parking garage and the proposed hospital building. The exterior elevations include a combination of pre-cast concrete panels to match the proposed hospital and medical office buildings and a decorative metal screen. Elements such as, green tinted glass in the stairwells; aluminum clad canopies over the vehicular entrances; a cornice and aluminum fin detail on all four elevations at the upper levels of the garage; and, an accent color on the elevator tower further tie the parking garage architecturally to the existing medical office buildings and the proposed hospital building. Another change in the parking garage from the 2005 approval is the addition of one level of parking below grade; this additional level of parking does not affect the aesthetics of the parking garage. The parking garage would be located on the southern end of the site and would not be readily visible from Dublin Boulevard or Tassajara Road. Short breaks between buildings along these two street frontages would provide views ofthe parking garage to a limited degree. Public Art The original 1998 approvals for the Koll Dublin Corporate Center included a requirement that public art be provided at the comer of Dublin Boulevard and Tassajara Road as part of the development of Lot 7 which is now the Dublin Gateway Medical Center. A public art piece has been installed and satisfies the public art requirement under the 1998 approvals. In September 2006, the City adopted a Public Art Ordinance which now requires developers to install public art as part of new development projects. While the proposed Project falls within the definition of a ~w development project it is not subject to the Public Art Ordinance because the 2005 approval of Vesting Tentative Parcel 8524 for the Dublin Gateway Medical Center precedes the adoption ofthe Public Art Ordinance; however, the Developer has agreed to provide a piece of public art in conjunction with the proposed Project (Condition of Approval No. 13, Attachment 3). The proposed location for the public art piece would be within the vehicular roundabout off of the Glynnis Rose Drive entrance to the Project. Page 10 of 18 ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA) the Project has been reviewed for environmental impacts and an Initial Study has been prepared. The Project is located within the Eastern Dublin Specific Plan area and is part of the project area covered by the Eastern Dublin Ge1?-eral Plan Amendment and Specific Plan Environmental Impact Report (the "Eastern Dublin EIR") certified by the City Council in 1993 (SCH No. 91103064) and the Santa Rita Property Mitigated Negative Declaration certified by the City Council in 1996 (SCH No. 96082092). With regards to cumulative traffic impacts at the Dublin Boulevard/Dougherty Road intersection, the Project is covered by the Dublin Ranch West Environmental Impact Report (the "Dublin Ranch West EIR"). The Initial Study prepared for the Project evaluated the Project at a site specific level for potential impacts which had not already been analyzed as part of the Eastern Dublin EIR and Dublin Ranch West EIR. Based on the analysis contained within the Initial Study, no new environmental impacts were identified; therefore, an Addendum has been prepared. As provided for in Section 15164 of the CEQA guidelines, an Addendum need not be circulated for public review but shall be considered with the prior EIR(s) before making a decision on the Project. Four of the sixteen categories contained within the Initial Study were specifically identified for Project- specific review. A visual analysis was prepared to address potential aesthetic impacts resulting from the relocation of the 6-story building. Hazards and hazardous materials were analyzed at a Project-specific level because such analysis was not undertaken as part of the Eastern Dublin EIR and noise was analyzed for potential environmental impacts resulting from the emergency room operations. Lastly, transportation and traffic was analyzed for the change in use from medical offices to a hospital and for impacts to the Dublin Boulevard/Dougherty Road intersection. Aesthetics (Attachment L Exhibit A) The 1998 Stage 1 and 2 Development Plan for the Dublin Corporate Center anticipated the development of a 6-story signature office building at the comer of Dublin Boulevard and Tassajara Road. A project- specific visual analysis was prepared in 1998 as part of the Koll Dublin Corporate Center Vesting Tentative Map and Site Development Review analyzing a 6-story building at the comer of Dublin Boulevard and Tassajara Road along with three 4-story buildings adjacent to Interstate 580. The visual analysis concluded that no additional significant impacts beyond those addressed in the Eastern Dublin EIR were identified for the project. At the time of the 2005 approvals for the Dublin Gateway Medical Center, changes in market conditions resulted in the developer requesting approvals for two 3-story medical office buildings and one 3-story lifestyle/wellness building rather than the previously analyzed 6-story signature office building. The three 4-story office buildings (Phase 1) adjacent to Interstate 580 had been constructed prior to the 2005 approvals and are still in existence. Because the 3-story medical office buildings were lower than the three 4-story office buildings adjacent to Interstate 580, it was determined that no visual impact would result. The current Project proposes to reintroduce the 6-story building for a hospital use in a slightly different location than what was previously analyzed; therefore, a new visual analysis was performed to determine if any adverse aesthetic impacts would result. Due to the fact that the surrounding properties are largely built out with one-, two-, three- and four-story buildings and based on the results of the visual analysis, a determination has been made that the Project will not have any significant impacts to aesthetics. The Page 11 of 18 proposed 6-story building incorporates 3-story elements which provide a transition from the taller 6-story structure to lower 3-story and I-story buildings in close proximity to the Project. Hazards and Hazardous Materials (Attachment L Exhibit A) As part of the development of Phase One of the Dublin Gateway Medical Center, a Phase I Environmental Site Assessment was performed by URS Corporation dated November 1, 2004, and concluded that the probability of environmental contamination, impairment or liability associated with the Project site was low to moderate. Additionally, the Project site is not located on a hazardous waste and substance site pursuant to Government Code Section 65962.5. The Project would require the transport, use and disposal of hazardous materials such as, pharmaceuticals and bio-hazardous waste. State law requires all hospitals to be licensed by the State and comply with strict regulations for the handling, storage and disposal of hazardous materials. Therefore, the Project will not have any significant impacts as a result of hazards and hazardous materials. Noise (Attachment L Exhibit A) The Proj ect proposes to include an emergency room which would introduce a new source of noise as a result of the Project which would otherwise not be present on the Project site if a medical office building were to be established. Ambulance sirens associated with the emergency room operations were analyzed to determine the level of impact to the Project site and surrounding properties. The proposed emergency room would create a destination for ambulances and as a result would introduce noise associated with sirens to the Project site. The use of sirens is regulated by the California Highway Patrol and the protocols for siren use and maintenance are set forth in Ambulance Driver Handbook published by the Department of Motor Vehicles. According to the Handbook, Code 3 operations, which is a term used to describe the use of red warning lamps and sirens in response to an emergency call, are only to be used when initially responding to an emergency call or when speed in obtaining emergency medical care appears essential to save a life, prevent undue suffering, or to reduce or prevent disability. The Handbook further states that the use of sirens shall be restricted to situations where they are most effective. Ambulances are not proposed to be stored at the Project site and therefore would not be dispatched from the Project site. As a result, siren noise associated with the transport of a patient to the Project site is more probable than siren noise associated with an ambulance being dispatched from the Project site. In addition to siren noise being limited to the transport of a patient to the Project site, there are two other hospitals within the Tri-Valley: San Ramon Regional Medical Center in San Ramon and ValleyCare Hospital in Pleasanton, which could also be destinations for the transport of patients depending on the type and severity of the injury. In analyzing the totality of the circumstances in which ambulance sirens would be utilized in connection with the Project's emergency room operations, a determination has been made that the noise impact would be less than significant. Transportation/Traffic (Attachment L Exhibit A) The proposed Project would generate slightly more A.M. peak hour trips and slightly fewer P.M. peak hour trips than the previously approved medical office building. According to the Institute of Traffic Engineers, a project that generates fewer than 100 additional A.M. or P.M. peak hour trips does not require additional traffic studies; therefore, the additional A.M. peak hour trips expected by the Project is Page 12 of 18 negligible and would not have a significant effect on the environment. However, the additional trips generated by the Project would contribute to the cumulative build out impacts from development in eastern Dublin on Interstate 580, the Santa Rita Road/Interstate 580 ramps and the Dublin Boulevard/Dougherty road intersection. These cumulative build-out traffic impacts were fully analyzed as part of the Eastern Dublin General Plan Amendment and Specific Plan Environmental Impact Report (the "Eastern Dublin EIR") and the Dublin Ranch West Environmental Impact Report (the "Dublin Ranch West EIR") and no significant impacts beyond those previously identified would result from the Project. Therefore, the City prepared an Addendum which is attached as Exhibit A to Attachment 1. DEVELOPMENT AGREEMENT One of the implementing measures of the Eastern Dublin Specific Plan is the requirement that the City enter into a Development Agreement with developers within the Plan area. The Development Agreement provides security to the developer that the City will not change its zoning and other laws applicable to the project for a specified period of time (the so-called "vesting period"). The City offers developers in Eastern Dublin, where development agreements are required by the Specific Plan, a 5-year vesting period. The benefit to the City of entering into a Development Agreement with the property owner is that the document is a contract that ensures that the goals of the Eastern Dublin Specific Plan are met and the infrastructure facilities for the area are constructed with each development phase. Additionally, it ensures that dedications of property and easements are made, project phasing is followed, the appropriate fees are paid for the development, and any additional terms of the Agreement are met as the development proceeds. Due to the length of time it takes to process hospital building permits through state regulatory bodies, the Developer has requested a longer vesting period of 10 years. In exchange for this extended vesting period, City Staff requested and the Developer agreed to include a provision in the Development Agreement that would require the Developer to provide a Community Benefit Payment (described at the end of this page and on page 14 in the section titled Consistency with the General Plan, Eastern Dublin Specific Plan, Planned Development Zoning District (P A 98-047), as Amended, and the Dublin Zoning Ordinance) upon the happening of certain events. The Approval of Development Agreements is by adoption of an Ordinance by the City Council upon a recommendation by the Planning Commission. The proposed Development Agreement between the City of Dublin and Triad Dublin Gateway LP is contained in Exhibit A of Attachment 4, which is the Resolution recommending City Council approval of the Development Agreement. The format and structure of the Development Agreement for the Dublin Gateway Medical Center Building 3 Hospital and Garage project is based on the standard Development Agreement developed by the City Attorney and adopted by the City Council for projects within the Eastern Dublin Specific Plan area. The City Attorney drafted the proposed Development Agreement for the Project with input from City Staff, the Property Owner and Developer, and their attorneys. The Development Agreement sets forth the agreement between the parties in relation to many items, including, but not limited to, phasing, project and off-site infrastructure, and payment or waiver of fees. The Development Agreement runs with the land and the rights thereunder can be assigned. NOTICING In accordance with State law, a Public Hearing Notice was mailed to all property owners and occupants/residents within three hundred feet of the Project site and to all parties requesting such notice. The Public Hearing Notice provided a description of the Project including the location, approvals sought and environmental review undertaken. The Public Hearing Notice was also published in the Valley Times and posted at several locations throughout the City. Page 13 of 18 CONSISTENCY WITH THE GENERAL PLAN, EASTERN DUBLIN SPECIFIC PLAN, PLANNED DEVELOPMENT ZONING DISTRICT (P A 98-047), As AMENDED, AND THE DUBLIN ZONING ORDINANCE The Project is located within the Eastern Extended Planning Area and is designated as Campus Office in the General Plan and Eastern Dublin Specific Plan land use maps. The Project is consistent with this land use designation in that: 1) it is an employment generating use that will provide a range of service and professional jobs within the City and the surrounding Tri-Valley region; and 2) it provides an attractive, campus like setting for medical office uses. Additionally, the General Plan and Eastern Dublin Specific Plan allow for a floor area ratio (FAR) of .25-.80 for Campus Office land uses. The FAR for the Project has been calculated in conjunction with the larger Koll Dublin Corporate Center, of which the Project is a part, and the increase in square footage does not exceed the maximum allowable FAR for Campus Office land uses (.80). The Koll Dublin Corporate Center was approved in 1998 with an FAR of .33. The Project increases the FAR to .47 which is still within the allowable range. The Project is located within the Tassajara Gateway Subarea of the Eastern Dublin Specific Plan. This area encourages the development of uses that will benefit from the close proximity to the area's three. major corridors (1-580, Dublin Boulevard and Tassajara Road). Due to the area's visibility from these corridors, the land uses within this area should present a high profile, quality image. The Project is consistent with the Tassajara Gateway Subarea in that: 1) the hospital use is located in a manner which makes it readily visible to the public; and 2) the Project incorporates design features (i.e. pre-cast concrete panels, green tinted glass, aluminum canopies and fins, varied building heights), public art and site landscaping. The Eastern Dublin Specific Plan allows for the development of general commercial uses through a Planned Development Zoning process. The Planned Development Zoning District (P A 98-047), in which the Project is located, allows for the establishment of a hospital with approval of a Conditional Use Permit and a parking garage is a permitted use. Section 8.100.160.G of the Dublin Municipal Code requires a finding that the Project is consistent with applicable specific plans for approval of a Conditional Use Permit. One goal of the Eastern Dublin Specific Plan is that new development pays for needed services [Eastern Dublin Specific Plan, section 10.4; Policy 10-1]. The Eastern Dublin Specific Plan anticipates that revenues to pay for public services will come from property taxes, among other revenues (section 10.2), and the Specific Plan indicates that the monies from the Specific Plan area are anticipated to be enough by 2014. A fiscal study was done for the Specific Plan that shows revenues and expenses, based on the assumption that property tax revenues are received from all properties. Property tax revenues were a significant component of the anticipated revenues needed to pay for public services when the City adopted the Eastern Dublin Specific Plan. Chapter 3.12 of the Eastern Dublin General Plan Amendment and Specific Plan Environmental Impact Report (the "Eastern Dublin EIR") discussed operating costs and revenues, concluding that property tax revenue was the primary form of new revenues. Impact 3.12/A finds that project-generated revenues will be sufficient to cover project- generated costs after shortfalls in the early years assuming at least 25 percent share of property taxes. No mitigation was therefore required as part of the Eastern Dublin EIR. If the proposed hospital is a non-profit hospital, it is entitled to an exemption from property tax pursuant to state law (Rev. & Tax Code section 214). In order to mitigate this loss of property tax revenues and in order to find a hospital that is consistent with the Eastern Dublin Specific Plan if it is a non-profit hospital, Staff recommends that the Conditional Use Permit include a condition of approval that requires a payment, called a "community benefit payment", if the hospital will be a non-profit hospital. The payment would be in the amount of $2,093,872, which will be paid at the time of issuance of a Page 14 of 18 grading/site-work permit for the hospital or at any time during the term of the Development Agreement if the hospital is constructed as a for-profit hospital and converts to a non-profit during the term of the Development Agreement. Because of the difficulty of calculating the loss of property tax revenues (i.e. due to assumptions that must be made about the assessed value, the rate of the tax the City would receive, adjustments to the assessed value, and the duration of the exemption) and creating an enforceable mechanism for collecting the lost revenues, Staff recommends a flat payment. The Applicant is in agreement with this condition. A similar provision is included in the Development Agreement. The Project is consistent with the Zoning Ordinance in that it has been designed, and conditions of approval have been applied, to ensure compliance with all development regulations and standards not otherwise specified in the Stage 1 and 2 Development Plan, as amended, for the Planned Development Zoning District (PA 98-047). PLANNING COMMISSION HEARING OF APRIL 24, 2007: At the April 24, 2007 Planning Commission meeting, Staff presented the alternative Project known as the Dublin Gateway Medical Center Building 3 Hospital and Garage. The Planning Commission expressed concerns regarding the Project and directed Staff to work with the Applicant to address the following items (see April 24, 2007 Meeting Minutes in Attachment 6): . Reduce the massing of the building at Dublin Boulevard and Glynnis Rose Drive by notching the comer of the building. . Revise the loading dock area to facilitate truck turning movements which would not interfere with vehicular traffic on Glynnis Rose Drive. · Relocate the trash enclosures to an internal location on the site. · Include architectural elements on all four sides of the parking garage and revise the vegetative screen on the south elevation. . Identify operational equipment such as generators and oxygen tanks and how the location and screening of these items will be addressed. · Provide additional information on staffing levels (i.e. shift changes, staffing plan) and parking requirements. During the Public Hearing, Jennifer Kim, a resident of Dublin, addressed the Planning Commission with questions regarding noise, traffic and parking as it related to the Project. The Planning Commission and Staff addressed each of her questions and she thanked the Planning Commission for the opportunity to speak. PLANNING COMMISSION HEARING OF MAY 8, 2007: At the May 8, 2007 Planning Commission meeting, Staff addressed each of the Planning Commissions six concerns (see Attachment 7, the May 8, 2007 Planning Commission Agenda Statement). The Planning Commission expressed appreciation for the changes made to the massing of the building at Dublin Boulevard and Glynnis Rose Drive; the relocation of the trash enclosures to a more internal location within the site; and the architectural elements which were added to all four sides of the parking garage and the additional vegetative screening. With regards to the revised loading dock area, the Planning Page 15 of 18 Commission was supportive of the redesign which allows for delivery trucks to pull off of Glynnis Rose Drive in a forward direction and then back into the on-site loading bay; however, the Planning Commission did express further concerns regarding the operations of the loading dock, i.e. number of deliveries, types of deliveries, and size of delivery trucks. To address this concern, Condition of Approval No. 22 (see Attachment 3, pages 12-13) has been revised as follows (new text is shown in bold and italics) : Condition of Approval No. 22: Construction Plans for Hospital Building. Notwithstanding the fact that the hospital building will be permitted and inspected by the State of California Office of Statewide Health Planning and Development (OSHPD), Applicant/Developer acknowledges that the development of the hospital building is subject to the requirements of the City of Dublin Zoning Ordinance and this approval, and that the construction of the hospital must be completed in compliance with those requirements. To allow the City to comment on the construction plans' compliance with the City's Zoning Ordinance and this approval, Applicant/Developer shall submit three (3) sets of construction plans for the hospital building to the Planning Division concurrently with the Applicant/Developer's submission of such plans to OSHPD. The Applicant/Developer shall also submit to the Planning Division a hazardous materials plan and a typical schedule of loading dock activities including the types of deliveries, number of deliveries, and types of vehicles making deliveries. Applicant/Developer shall pay the City's fees to review the construction plans to determine conformance with the City of Dublin Zoning Ordinance and this approval. Applicant/Developer shall reasonably respond to any comments made by the City relative to compliance with the City of Dublin Zoning Ordinance and this approval. If, during the course of OSHPD review of the construction plans, changes to the Project are necessary to comply with State regulations, the Applicant/Developer shall notify the City and resubmit plans to the Planning Division for review. Additionally, if modifications necessitate review by the Planning Commission and/or City Council, the Applicant shall be responsible for the submittal ofproject applications and materials for review by the City. Additionally, Condition of Approval No. 18 requires that a delivery schedule and loading dock operations plan be furnished by any future tenant upon request by the Community Development Director to ensure on-going compatibility of the Project with its surroundings (see Attachment 3, page 11). The Community Development Director has the ability to make such a request on an annual basis. Condition of Approval No. 18 reads as follows: Condition of Approval No. 18: Loading Dock Activities. Upon request by the Community Development Director, the Applicant/Developer, and all future tenants ofthe property, shall furnish a delivery schedule and loading dock operations plan (the "Plan") for review and approval. The Plan shall be reviewed as an annual review of the Conditional Use Permit per Condition of Approval No. 15 above. The Planning Commission also expressed concerns regarding operational equipment such as generators and an oxygen tank; both of which are required infrastructure for a hospital facility and neither of which are identified on the Project plans. The Planning Commission was concerned with the future location of such equipment and how it will be screened from public view. Condition of Approval No. 23 (see Attachment 3, pages 13-14) addresses the screening of electrical, mechanical and plumbing equipment including tanks and reads as follows: Page 16 of 18 Condition of Approval No. 23: Equipment Screening. To the extent allowable under State and local building and fire codes, all electrical, mechanical, and plumbing equipment, and/or tanks, shall be located underground or within the building. To the extent allowable under State and local building and fire codes, any electrical, mechanical, and plumbing equipment, and/or tanks, which cannot be located underground or within the building due to State and local building and fire codes, shall be located on the roof of the building and shall be completely screened from public view with materials architecturally compatible with the building and to the satisfaction of the Community Development Director. Any electrical, mechanical and plumbing equipment, and/or tanks, which cannot be located on the roof of the building due to State and local building and fire codes, shall be subject to Site Development Review approval. The Community Development Director shall determine whether to process the review administratively or refer it to the Planning Commission. After much discussion regarding operational equipment, the Planning Commission indicated that they felt comfortable that Condition of Approval No. 23 adequately addressed the issue of screening operational equipment and did not modify the condition of approval. The final concern expressed by the Planning Commission at the April 24, 2007 hearing was related to staffing levels and parking. A new condition of approval was added, Condition of Approval No. 22a (see Attachment 3, page 13) which reads as follows (new text is shown in bold and italics): Condition of Approval No. 22a: Staffing Level Plan. Prior to the issuance of a building permit for the parking garage, the Applicant/Developer shall provide the City with a written statement identifying the hospital tenant and the specific staffing levels with respect to the number of doctors and employees on the largest shift. If the number of doctors or employees on the largest shift increases, a parking analysis shall be conducted to ensure that adequate parking will be provided in accordance with Chapter 8.76 of the Dublin Zoning Ordinance. If additional parking is needed, the Applicant/Developer shall apply for an amendment to the Conditional Use Permit and Site Development Review; such application shall be reviewed and approved prior to the issuance of a grading permit and/or building permit for the parking garage. The Planning Commission also requested that Condition of Approval No. 26a be added to the Project requiring the Applicant/Developer to provide a copy of the approved conditions of approval to all future tenants of the Project (see Attachment 3, page 14). Condition of Approval No. 26a reads as follows (new text is shown in bold and italics): Condition of Approval No. 26a. The Applicant/Developer shall provide a copy of the approved conditions of approval to all future tenants. The Planning Commission also discussed the potential for a helicopter pad to be added to the Project at a later date. Staff indicated that a helicopter pad is not part of the current application and that if a helicopter pad is proposed in the future, additional environmental analysis would need to be completed. The additional modifications to existing conditions of approval and the new conditions of approval were added by the Planning Commission to ensure that the Planning Commission could make the appropriate findings for the recommendation of approval on a Conditional Use Permit and Site Development Review. Page 17 of 18 During the Public Hearing one member of the public addressed the Planning Commission regarding the Project. Gary Sloan, CEO of San Ramon Regional Medical Center, asked the Planning Commission to consider the impact a new hospital would have on existing hospitals within the Tri-Valley, namely San Ramon Regional and ValleyCare, as well as the impacts to essential services such as Police and Fire protection. Mr. Sloan expressed that he did not feel the Planning Commission had an adequate amount of information before them regarding the Project to make an informed decision. Mr. Sloan felt that the Planning Commission should know who the tenant will be before making a decision on the Project. Following the Public Hearing the Planning Commission deliberated, made revisions to the Conditions of Approval for the Conditional Use Permit and Site Development Review and voted to adopt the following Resolutions: . Planning Commission Resolution 07-23 (Attachment 9) recommending City Council adoption of a CEQA Addendum for an amendment to the Stage 1 and 2 Development Plan for Planned Development Zoning District (PA 98-047) and for a Conditional Use Permit and Site Development Review for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project. . Planning Commission Resolution 07-24 (Attachment 10) recommending City Council adop~ion of a Planned Development Rezone and Stage 1 and 2 Development Plan for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project. . Planning Commission Resolution 07-25 (Attachment 11) referring decision making authority and recommending City Council approval of a Conditional Use Permit and Site Development Review for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project. . Planning Commission Resolution 07-26 (Attachment 12) recommending City Council adoption of a Development Agreement for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project. RECOMMENDATION: Staff recommends that the City Council: 1) Open the public hearing; 2) Receive Staff presentation; 3) Take testimony from the Applicant and the public; 4) Close public hearing and deliberate; 5) Adopt Resolution (Attachment 1) approving a CEQA Addendum for an amendment to the Stage 1 and 2 Development Plan for Planned Development Zoning District (PA 98-047) and for a Conditional Use Permit and Site Development Review for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Addendum attached as Exhibit A and Statement of Overriding Considerations attached as Exhibit B; 6) Waive the reading and introduce an Ordinance (Attachment 2) approving a Planned Development Rezone and Stage 1 and 2 Development Plan for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Stage 1 and 2 Development Plan attached as Exhibit A; 7) Adopt Resolution (Attachment 3) approving a Conditional Use Permit and Site Development Review for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Project Plans attached as Exhibit A; and 8) Waive the reading and introduce an Ordinance (Attachment 4) approving a Development Agreement for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project, with Development Agreement attached as Exhibit A. 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