To: HONORABLE MAYOR AND From: Stephen M. Haase

CITY COUNCIL

Subject: EDENVALE AREA DEVELOPMENT Date: October 29, 2003

POLICY MODIFICATION

COUNCIL DISTRICT: 2

RECOMMENDATION

Staff recommends that the City Council approve the proposed modification to the Edenvale Area Development Policy (ADP) to address timely future economic development of the underutilized IBM site on the northeast corner of Poughkeepsie and Cottle Roads, with approximately 220,000 square feet of commercial uses on an 18.75 acre site.

BACKGROUND

In response to a development application proposed by Lowe’s for a home improvement warehouse project on the northeast corner of Poughkeepsie and Cottle Roads (File No. PDC02-086), staff determined that the City’s specific transportation policy for the area, the Edenvale Area Development Policy, did not address the economic development potential of this key 18.75 acre site. At the time of the adoption of the current ADP in November 2000, the nature and intensity of additional development on this portion of the IBM campus had not yet been determined and was not included in the environmental analysis or the Policy.

The proposed ADP Modification was noticed and scheduled to be heard by the Planning Commission for a courtesy review at their October 22, 2003 meeting, immediately ahead of the Commission’s scheduled public hearings for the proposed Lowe’s home improvement warehouse, both the Environmental Impact Report (EIR) and Planned Development Rezoning (File No. PDC02-086). However, under the Deferrals portion of the Commission agenda for the evening, several Commissioners were concerned about traffic LOS impacts in the vicinity of the gateway intersections, and indicated a need for additional information on a list of other more site specific concerns and the potential for local cut-through traffic. The Commission then deferred its deliberation on the Edenvale ADP modification and the Lowe’s project and EIR for four weeks, to November 19, 2003.

ANALYSIS

The City Council is the decision-making body for changes or modifications to an Area Development Policy under the General Plan; there is no Code requirement for the Planning Commission to provide any General Plan interpretation or recommendation to the Council. Staff had originally determined that bringing the Edenvale ADP modification through the hearing process before the Commission and the City Council as a package with the proposed Lowe’s rezoning and EIR could streamline the process, and provide a focused forum for public input. However, given the concern expressed by the Commission regarding increases in potential future temporary LOS F congestion levels at gateway freeway interchanges proximate to the project site in Edenvale, staff believes it is appropriate to bring the matter of the staff-initiated Modification of the Edenvale ADP to the Council at this time. A Council decision on modification of the ADP to include economic development on the IBM site would provide a clear Council transportation level-of-service policy context for the subsequent review of the Lowe’s EIR and project rezoning.

Staff has reviewed additional traffic analysis and completed environmental review documentation to confirm that the gateway transportation improvements included in the ADP (US 101/Blossom Hill Road and US101/Hellyer interchanges and extension of Hellyer Avenue) will provide adequate capacity to allow commercial development of this site, in addition to the 5 million square feet of potential industrial development in the New Edenvale Redevelopment area already covered by the policy. Under the ADP, full buildout of both the commercial and industrial development is permitted to occur prior to the completion of construction of the gateway improvement, although progress toward this buildout has slowed given the current economic condition. Final design of the improvements is on schedule for October 2004. While the project is programmed, the timeframe for availability of funds is likely to be extended due to state and local budgetary constraints.

Staff recommends approval of the proposed Modification of the Edenvale ADP to facilitate the timely economic development of the subject site.

PUBLIC OUTREACH

Notices of the City Council hearing for this proposed Modification to the Edenvale ADP were mailed to property owners and residents within 1000 feet of the project site, and was published in the newspaper. Staff has been available to discuss the project with members of the public.

COORDINATION

This memorandum has been coordinated with the Office of the City Attorney.

CEQA

Addendum to the Edenvale Redevelopment Project Supplemental EIR, Resolution Nos. 69699 and 70021.

STEPHEN M. HAASE, DIRECTOR

Planning, Building and Code Enforcement