HomeMy WebLinkAboutItem 6.1 CommerceOneCancel
CITY CLERK
File # 600-60
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: November 2, 2004
SUBJECT:
PUBLIC HEARING - Cancellation of the Commerce One
Development Agreement 2nd Reading
Report Prepared by: Jeri Ram, Planning Manager
ATTACHMENTS:
1. Ordinance Canceling the Commerce One Development
Agreement
RECOMMENDATION:
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1. Open public hearing and hear Staff presentation
2. Take testimony from the Applicant and the public
3. Question Staff, Applicant and the public
4. Waive Reading and adopt an Ordinance (Attachment 1)
Canceling the Commerce One Development Agreement
FINANCIAL STATEMENT:
None at this time.
DESCRIPTION:
The Commerce One Project was approved in 2001 to construct an office building complex on a 27.4 acre
site located at the Martinelli Way and Hacienda Drive, Interstate 580 and Arnold Road within the Eastern
Dublin Specific Plan area.
One of the implementing actions of the Eastern Dublin Specific Plan calls for the City to enter into
development agreements with developers in the plan area. As part of the project approvals, a
Development Agreement was approved in early 2001 between Commerce One, Alameda County Surplus
Property Authority and the City of Dublin (Attachment 2). The Development Agreement was based on
the standard Development Agreement developed by the City Attorney and adopted by the City Council for
Eastern Dublin Projects. The term ofthe Development Agreement was for a period of eight years.
Following the approval of the Commerce One Project (including the Development Agreement),
Commerce One made a business decision to not pursue the project. Subsequent to that, the property
owner, Alameda County Surplus Property Authority, negotiated with Ikea to develop the site. The Ikea
Project was approved by the City Council in March ofthis year. The Ikea Project also contained a
Development Agreement as required by the Eastern Dublin Specific Plan. To facilitate the Ikea
development project, Commerce One assigned its rights under the Development Agreement to the
Alameda County Surplus Property and the sole parties to the Commerce One Development Agreement are
the City and the Alameda County Surplus Property Authority. As a clean up item, Alameda County
Surplus Property Authority has now requested that the Development Agreement with Commerce One be
terminated (Attachment 1). Staff concurs that it is necessary to cancel this Development Agreement.
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COPIES TO:
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ITEM NO.
Applicant
In-House Distribution
6.1
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The process for canceling a development agreement (Section 8.56.120 of the Municipal Code) is the same
as for approving a development agreement.
Planning Commission Meeting:
The Planning Commission heard this item at a public hearing on September 28, 2004 and with a vote of 5-
0, the Planning Commission approved Alameda County Surplus Property Authority's request to cancel the
development agreement.
City Council Meeting:
The City Council heard this item at a public hearing on October 19,2004 and waived the first reading and
introduced an Ordinance approving Alameda County Surplus Property Authority's request to cancel the
development agreement. As required by the City of Dublin Municipal Code, a second reading of the
proposed Ordinance is necessary prior to final adoption.
RECOMMENDATION:
Staff recommends the City Council open the public hearing; take testimony from the Applicant and
public; question Staff, Applicant and the public; close the public hearing and deliberate; waive the reading
and adopt the Ordinance canceling the Development Agreement between Commerce One, Alameda
County Surplus Property Authority and the City of Dublin.
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DUBLIN
CANCELING THE DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF DUBLIN, COMMERCE ONE (PA OO~015), and
ALAMEDA COUNTY SURPLUS PROPERTY AUTHORITY
FOR THE COMMERCE ONE CORPORATE HEADQUARTERS FACILITY PROJECT
THE CITY COUNCIL OF THE CITY OF DUBLIN DOES HEREBY ORDAIN AS FOLLOWS:
Section 1:
RECITALS
A. The proposed Commerce One Headquarters project (P A 00-015) project was approved by
the City Council in 2001. The 27.4 acre project was located APN# 986-005-026 within the boundaries of
the Eastern Dublin Specific Plan.
B. As part of that project a Development Agreement was approved between the City of
Dublin, Commerce One and Alameda County Surplus Property Authority.
C. Implementing actions of the Specific Plan, including Chapter 11 thereof, require that all
projects within the Specific Plan area enter into development agreements with the City.
D. Subsequent to the approval of the Commerce One Project, the Applicant made a decision
to not go forward with the development project and Commerce One subsequently assigned its rights under
the Development Agreement to the Alameda County Surplus Property Authority.
E. The property owner, Alameda County Surplus Property Authority, and a new developer,
Ikea, submitted an application for a different project on the same site. The Ikea Project, which includes a
Development Agreement, was approved in March 2004, by the City Council. The Ikea Project
Development Agreement contains all of the requirements necessary to build the project in conformance
with the Eastern Dublin Specific Plan and General Plan policies.
F. There are currently two development agreements for two separate projects on the same site.
G. The process for,canceling a development agreement is the same process as for adopting a
development agreement.
H. The Development Agreement between the City of Dublin, Commerce One and the
Alameda County Surplus Property Authority has been presented to the City Council, a copy of which is
attached to the Staff Report as Attachment 2.
I. The Planning Commission did hold a public hearing on this item on September 28, 2004
and recommended that the City Council cancel the Commerce One Development Agreement.
J. A public hearing on the proposed cancellation of the Development Agreement was held
before the City Council on October 19,2004, and November 2, 2004, for which public notice was given
as provided by law.
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ATTACHMENT I
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J. The City Council has considered the recommendation of the Planning Commission at the
September 28, 2004, meeting, including the Planning Commission's reasons for its recommendation, the
Agenda Statement, all comments received in writing and all testimony received at the public hearing.
Section 2
FINDINGS AND DETERMINATIONS
Therefore, on the basis of (a) the foregoing Recitals which are incorporated herein, (b) the City of
Dublin's General Plan, (c) the Eastern Dublin Specific Plan Amendment, (d) the Eastern Dublin Specific
Plan, (e) the EIR, (t) the Agenda Statement, and on the basis of specific conclusions set forth below, the
City Council finds and determines that:
1. The cancellation of said Agreement is consistent with the objectives, policies, general land uses
and programs specified in the Eastern Dublin Specific Plan/General Plan in that, the project is no longer
active and another project has been approved in its place. Additionally, a new Development Agreement
has been approved that includes all of the City's requirements in relation to infrastructure sequencing and
payment of fees.
2. The cancellation of said Agreement will not effect the compatibility of the uses authorized
in, and the regulations prescribed for, the land use district in which the real property is located in that a
new project has been approved to replace this project.
3. The cancellation of said Agreement is in conformity with public convenience, general
welfare and good land use practice in that the Commerce One project no longer exists and a new project
has replaced it, which will implement land use guidelines set forth in the Eastern Dublin Specific
Plan/General Plan.
4. The cancellation of said Agreement will not be detrimental to the health, safety and general
welfare in that the project has been replaced with a new project which proceed in accordance with a
different development agreement and any Conditions of Approval for that Project; and
5. Cancellation of said Agreement will not adversely affect the orderly development of the
property or the preservation of property values in that a new project that is also consistent with the City of
Dublin Eastern Dublin Specific Plan/General Plan has been approved in place of this one.
Section 3:
APPROV AL
The City Council hereby cancels the Development Agreement (Attachment 2 to the Staff Report).
Section 4:
RECORDATION
Within ten (10) days after the Development Agreement is executed by the Mayor, the City Clerk
shall submit the Ordinance to the County Recorder for recordation.
Section 5:
EFFECTIVE DATE AND POSTING OF ORDINANCE
This Ordinance shall take effect and be in force thirty (30) days from and after the date of its
passage. The City Clerk of the City of Dublin shall cause the Ordinance to be posted in at least three (3)
public places in the City of Dublin in accordance with Section 36933 of the Government Code ofthe State
of California.
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PASSED AND ADOPTED BY the City Council of Dublin, on the 2nd day of November 2004.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
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