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HomeMy WebLinkAbout8.5 - 1339 Second High School Sites Report STAFF REPORT CITY COUNCIL DATE: March 7, 2017 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Informational Report on High School Sites Considered By Dublin Unified School District Prepared by: Linda Smith, Assistant City Manager and Luke Sims, Commu Development Director EXECUTIVE SUMMARY: The City Council will receive an informational report on the five (5) sites identified by the Dublin Unified School District as potential locations for the second high school. STAFF RECOMMENDATION: Receive the report. FINANCIAL IMPACT: Depending on the site(s) selected by the Dublin Unified School District the new high school, there could be financial impacts (potential loss of sales and/or property taxes) to the City. DESCRIPTION: The Dublin Unified School District (“District”) identified the need for a second high school site last year. In May 2016, the residents of Dublin supported a bond measure, in large part, to provide funding for the construction of the second high school. The District initially identified several potential sites for the facility. After further review, the DUSD Board of Trustees, on February 1, 2017, eliminated four sites from consideration (and eliminated a fifth site on February 14). Staff has included (below) the District’s rationale for their elimination of the five potential sites: Page 1 of 6 Page 2 of 6 The Board has directed District staff to begin negotiations for potential sites to serve as a second high school in Dublin. The sites under consideration by the DUSD include, under private ownership The Promenade; DiManto A; DiManto B; and the Zeiss Meditec building. There are two District-owned school sites also under consideration: Murray and Nielsen (elementary school sites). On February 7, 2017, the City Council requested that Staff prepare a report that identified each potential second high school site and the potential impacts, if any, to the City if those sites were to become a school site. Staff has prepared t he following list of sites and a summary of their locations and the actual/potential City impacts in terms of revenues: Site Owner Assessor Parcel Number Acreage/Site SF General Plan/Specific Plan Designation The Promenade Grafton Station, LLC (4) 985-0078-004, 005, 006, and 007-00 21.71 acres Neighborhood Commercial & Public/Semi-Public DiManto A Dublin Land Company 985-0051-006-00 30.19 acres General Commercial/Neighbor hood Commercial/Medium- High Density/High Density Residential DiManto B Dublin Land Company 985-0052-024-00 20.7 acres General Commercial/Medium- High Density/High Density Residential Zeiss Meditec GPT TPG 5160 Hacienda LP 986-0014-001-00 13.15 acres Campus Office Nielsen Elementary Dublin Unified Public/School Murray Elementary Dublin Unified Public/School The Promenade The subject site is located between two residential projects on the west and east sides and is bordered on the north by Central Parkway and on the south by Dublin Blvd. The property currently has a Stage 1 Development Plan for a “Main Street” commercial Page 3 of 6 project of up to 230,000 square feet (retail and office space), and second floor accessory residential use estimated to be equivalent to 80 units. Currently, the property does not provide significant revenues to the City, but were it to develop as currently zoned, the City would likely gain significant tax revenue from its current basis. Assuming the development scenario provided, the site could potentially generate upwards of $300,000 in property tax revenue, and potentially $550,000 in sales tax revenue for the City, annually, based on an estimate of the potential assessed value and the retail sales from of such a development. This further assumes a viable retail project could be built on the site as originally proposed. Additionally, this site includes planned infrastructure that would come with the development of the property, including the completion of certain planned roadway and pedestrian connections that integrate the larger Dublin Ranch community, specifically the extensions of Grafton Street and Finnian Way (the completion of Grafton Street is included in the General Plan Circulation Element). DiManto - Sites A and B The District is evaluating either or both of the sites for its use as a future high school site. Site B sits north of Central Parkway and is bounded by Tassajara Road to the west, Brannigan St. to the east and Gleason Road to the north. Site A is located south of Central Parkway, bounded by the same east and west roads, and Dub lin Blvd. to the south. No additional infrastructure is planned in this area to bisect these properties. Additional lanes of traffic will be required once the property develops, regardless of the development type. Page 4 of 6 The site(s) currently have no formal ent itlements, only land use as defined in the Eastern Dublin Specific Plan and the General Plan. These plans anticipated up to approximately 536,000 square feet of General Commercial and Neighborhood Commercial development and 218 Medium-High and High Density residential units on the two sites. In the recent past, the City Council has authorized two General Plan Amendment studies to evaluate proposals that would potentially increase the number of housing units and further refine the commercial space at or around 100,000 square feet on Site A (these studies have since been terminated). Currently, this property does not provide significant revenues to the City, but were it to develop as currently zoned, the City would likely gain significant tax revenue. As suming the full development under existing zoning and with appropriate retail market support, the site could potentially generate upwards of $750,000 in property tax revenue and perhaps $1,500,000 to $1,800,000 in sales tax revenue for the City, annually, should commercial portions of the sites be fully developed as retail under the General Plan designation. Zeiss Meditec Building This is the one non-school property the District is evaluating that is already in built form. Currently, the property is home to Carl Zeiss Meditec, one of the world’s largest medical technology suppliers. Fortunately, Carl Zeiss is looking to expand and has selected Dublin as its place for that expansion. Zeiss will relocate into a new campus, adjacent to the former Sybase/SAP building to be constructed by 2020. The existing building is Page 5 of 6 approximately 200,000 square feet. With this potential option, it is unclear whether the District would renovate the existing building, or demolish the site and rebuild. Current property taxes on this site are approximately $112,000 annually to the City. Since school districts are exempt from property taxes, the City would no longer receive these funds. The user also generates sales tax revenue but we would anticipate that these revenues would continue at the new location. Sales tax revenues from industrial sites are dependent on the use; therefore, the City cannot anticipate that sales tax revenue would be lost, only the potential for users that generate taxable revenues. School Sites - Murray and Nielsen There are two locations on the District’s plans for evaluation that already belong to the District and therefore would have no meaningful change in the City’s zoning or collection of revenues. Page 6 of 6 Land Use Changes, Zoning and CEQA Process Three of the five sites identified by the District are currently zoned or designated for other land uses. If the District decides to pursue any of these options for a school, the preferred approach would be for the District to request for a G eneral Plan Amendment from the City Council so that the proposed use could be further evaluated for consistency and be integrated with the General Plan. If the City Council did not want to approve a change in land use/zoning, the District would be able to follow a process to override the City’s land use authority. A separate staff report on tonight’s agenda provides the City Council with detail about that process. The development of a high school at these prospective sites has not be contemplated or assessed in any past CEQA document. As such, whether the District works within the traditional General Plan Amendment process or it proceeds to approve a high school at one of the sites under its own authorities, proper CEQA study, analysis and documentation will need to occur before the project can be approved by the District Board. NOTICING REQUIREMENTS/PUBLIC OUTREACH: Per City Council direction, Staff notified the DUSD Superintendent about the report on February 17, 2017. A copy of the Staff report has been sent to the District. ATTACHMENTS: None.