Title
Report regarding consideration of applications for a Precise Plan, Use Permit, Design Review, Transportation Demand Management Plan, and Environmental Impact Report to construct a seven-story 208,800 square feet office / R&D building at 751 Gateway Boulevard in the Gateway Specific Plan Zoning District in accordance with Title 20 of the South San Francisco Municipal Code. (Adena Friedman, Senior Planner)
label
RECOMMENDATION
Recommendation
Staff recommends that the Planning Commission conduct a public hearing and take the following actions:
1. Adopt a resolution making findings and certifying Environmental Impact Report EIR19-0005, including adoption of a Mitigation Monitoring and Reporting Program and Statement of Overriding Considerations; and,
2. Adopt a resolution making findings approving the entitlements for Planning Project P18-0064, including Precise Plan PP20-0004, Use Permit UP19-0013, Design Review DR19-0035, and Transportation Demand Management Program TDM19-0006, based on the attached draft findings and subject to the attached draft Conditions of Approval.
Body
BACKGROUND/DISCUSSION
Site Overview
The 751 Gateway Boulevard site is approximately 7.4 acres, located within the Gateway Campus of the East of 101 area of the City. The project site consists of two parcels (Assessor’s Parcel Numbers (APNs) 015-024-290 and 015-024-360). The project site currently contains a six-story, approximately 176,200 sq. ft. office building at 701 Gateway Boulevard, and a surface parking lot containing 558 spaces. The current floor area ratio (FAR) on the site is .55, while the permitted maximum FAR is 1.25, leaving the remaining FAR available for additional development.
In addition to the existing office building at 701 Gateway Boulevard, the project site is surrounded by nearby Gateway Campus buildings at 801, 901, and 951 Gateway Boulevard. The Gateway of Pacific project is currently under construction across from the project site, on the eastern side of Gateway Boulevard. The project site is within the Gateway Specific Plan District (GSPD), which provides land use regulations and integrated development standards for a range of commercial, office, and research and development (R&D) uses.
Project Description
The project applicant, Alexandria Real Estate Equities (ARE), has applied for a precise plan to construct a seven-story office and R&D building on the site of an existing parking lot at 701 Gateway Boulevard. The proposed building would be approximately 208,800 sq. ft., consisting of 60% R&D uses and 40% office uses, and would include 418 surface parking spaces. The proposed building height is just over 148 feet. The existing office building at 701 Gateway will remain, and the new building would be designed and integrated as part of the larger Gateway Campus. The ground floor of the 751 Gateway Building will include amenity spaces (such as a café and a gym), and a through-lobby with building entries to both the north and the south. The amenity spaces will serve all employees within the Gateway Campus. The project includes an entry plaza north of the building, which will help connect the new building to the surrounding 701 and 801 Gateway buildings, and will also include improved pedestrian connections to nearby Gateway Campus buildings. The project will improve the sidewalk and landscaping along Gateway Boulevard, helping to improve pedestrian access and the public realm in the East of 101 area.
Site Design and Building Architecture
With a contemporary design, the 751 Gateway building has been designed to take advantage of the site conditions, and complement the existing development within the Gateway Campus. The Plan Set (attached to the Associated Entitlements Resolution, Exhibit B) prepared by RMW Architecture & Interiors includes project renderings, site design details, and material boards. The glassy architectural skin creates a modern and light design, and provides a counterpoint to the horizontal ribbon and punched windowed architecture of the existing site context. The design incorporates a variety of glass colors and shades, which break up the building facades. Vertical design elements run through the front facade of the building, providing visual interest along Gateway Boulevard and emphasizing the building’s height and elegant design.
The building is situated on an east-west axis on the site, to provide a welcoming frontage and sense of arrival along Gateway Boulevard, and also to provide an internal lobby at the interior of the site, creating a hub within the Gateway Campus. The building orientation and site design present opportunities for efficient solar utilization, and support the best orientation for laboratory air flow and exhaust streams for R&D uses. The project includes a screening element on the Gateway Boulevard frontage, which will incorporate artwork and materials in keeping with the industrial history and biotechnology uses of the East of 101 area. The project incorporates an outdoor deck on the second story of the front façade, which provides an open space amenity for employees and also breaks up the building massing and bulk.
The site design contains a series of plazas, creating connections within the site and to neighboring buildings. The Gateway Plaza and streetscape design fronting Gateway Boulevard provides a buffer along the site frontage, creating a visual and physical distinction between the parking area and the sidewalk. The Gateway Plaza helps to enhance the pedestrian experience and welcomes employees and visitors to the site. The landscape elements that buffer the parking lot also incorporate seating areas. Towards the rear of the site, the project incorporates an entry plaza at the site’s internal entrance, and an amenity plaza that provides connections to the 701 and 801 Gateway buildings. All of the plazas include landscaping and permanent seating areas, and the entry plaza and amenity plaza both contain flexible seating areas and outdoor furniture.
Landscaping and Open Space
The project provides landscaping and private open space in the form of plazas, seating enclaves, landscape buffers, and tree plantings throughout the site. Landscape plans and planting palettes are included in the Plan Set (Associated Entitlements Resolution, Exhibit B). Within the exterior amenity spaces and plazas, accent paving, flexible modular furniture and pre-cast concrete seat walls, green-wall systems and low water use native and adaptive plantings will be used to define various outdoor spaces as well as define circulation and heighten the sense of arrival and points of egress. The Gateway Plaza includes a meadow garden planting area interspersed with precast concrete seatwalls. The Entry Plaza includes a woodland garden planting area, and the Amenity Plaza contains additional meadow garden plantings and seating features, and space for recreational amenities. The landscape areas throughout the site include C-3 filtration/Bio-retention zones to capture and treat building and site paving runoff which are integrated into the site landscaping. The tree palette contains trees species to provide windscreens, feature plantings, and shade elements for open space and parking and circulation areas throughout the site.
Circulation
The main project vehicular access point will be from the existing two-way driveway from Gateway Boulevard, which is an existing signalized intersection. This intersection also serves the Gateway of Pacific project, currently under construction on the east side of Gateway Boulevard, across from the 751 Gateway project site. The project driveway continues to an internal access road in a horseshoe shape around the existing surface parking lot. A secondary vehicular access point and driveway from Gateway Boulevard is located at the northern end of the site, via a right-in / right-out driveway. Project parking can be accessed via both of the driveways, and a central passenger drop-off zone serving 701, 751, and 801 Gateway is provided at the western end of the 751 Gateway building, close to the building entrance and entry plaza. This designated passenger zone can be used for carshare, taxi, and shuttle drop-offs and pick-ups. The project also includes internal pedestrian connections throughout the site, connecting to neighboring buildings and amenity spaces. There are short- and long-term bicycle parking spaces incorporated throughout the project site, within plazas and adjacent to the main building entryway.
In addition to bicycle and pedestrian environments within the project site, the 751 Gateway project is also contributing to first-and last-mile transit connections in the public right-of-way, focusing on improving the connection to the Caltrain Station south of the site. The project will be contributing to extending a Class II bike lane along the project frontage on Gateway Boulevard, upgrading Poletti Way sidewalk to a Class I shared-use bicycle and pedestrian pathway, and will add a more direct connection to on-street shuttle stops on Gateway Boulevard by adding directional curb ramps and high visibility crosswalks at the northern leg of the Gateway Boulevard / project driveway intersection. The project will also participate in commuter shuttle programs, to encourage employees to commute via transit.
Entitlements Request
The Project is seeking the following entitlements, discussed in detail in this staff report:
• Precise Plan
• Transportation Demand Management (TDM) Plan
• Design Review
• Conditional Use Permit for a parking reduction
• Certification of EIR, including adoption of a Mitigation Monitoring and Reporting Program (MMRP) and Statement of Overriding Consideration (SOC)
GENERAL PLAN AND ZONING CONSISTENCY ANALYSIS
General Plan Designation
The General Plan Land Use Designation for the 751 Gateway site is Business Commercial (BC), which is intended for business and professional offices, and visitor service establishments, and retail. Permitted uses include for administrative, financial, business, professional, medical and public offices, R&D, and visitor-oriented and regional commercial activities. The site is also within the East of 101 Planning Sub-Area, defined by the General Plan.
The Project is consistent with the guiding and implementing policies in the General Plan as it has been designed to redevelop an underutilized site within the Gateway Campus with a high-quality employment use. The site layout and building design architecture will contribute to the urban character of the East of 101 Area. The proposed R&D / office project is consistent with the land use designation, permits office/R&D facilities and supporting uses.
Zoning Analysis
The 751 Gateway project site is within the Zone IV of the Gateway Specific Plan District (GSPD). R&D and office uses are both permitted land uses within this zoning district. The GSPD is implemented through precise plans, which are required to show compliance with development standards and guidelines. The applicant has submitted an application for a precise plan, which includes all of the detailed drawings and information required by SSFMC Section 20.220.012 (GSPD Administrative Provisions).
Per the development criteria outlined in Table 20.220.004 (Development Standards-Gateway Specific Plan District) of the South San Francisco Municipal Code (SSFMC), the proposed project meets the development standards of the GSPD Zone IV district:
• Maximum FAR: 1.25 Proposed: 1.2
• Maximum Building Height: 250’ Proposed: 148’
• Maximum Lot Coverage: 50% Proposed: 19.5%
Parking Reduction
The applicant is applying for a parking reduction. Per SSFMC Section 20.330.006 (Parking Reductions), the Planning Commission may approve a parking reduction through a Conditional Use Permit if it finds that:
• Special conditions-including but not limited to the nature of the proposed operation; proximity to frequent transit service; transportation characteristics of persons residing, working, or visiting the site; or because the applicant has undertaken a transportation demand management program-exist that will reduce parking demand at the site;
• The use will adequately be served by the proposed on-site parking; and
• Parking demand generated by the project will not exceed the capacity of or have a detrimental impact on the supply of on-street parking in the surrounding area.
Per SSFMC Table 20.330.004 (Required On-Site Parking Spaces), office and R&D uses must meet the following on-site parking requirements:
• Office: one (1) space per 350 sq. ft. over 100,000 sq. ft.
• R&D: one (1) space per 350 sq. ft.
Per these requirements, the 751 Gateway project would be required to provide 597 on-site parking spaces. The project is proposing a total of 418 parking spaces (or 1 space per 500 sq. ft.), which would be a reduction of 179 parking spaces. Across the East of 101 area, similar reduced parking standards have been approved and successfully applied within large office / R&D campuses, including other projects developed and managed by the 751 Gateway project applicant (ARE), including ARE’s Merck and Verily campuses located on E. Grand. ARE’s existing campuses throughout the East of 101 area have achieved on average a 35-45% alternative mode split, indicating a strong reliance on transit, carpooling, and other alternative travel modes. ARE has also provided a parking analysis for the Gateway Campus to support the parking reduction (included in the TDM Plan prepared by Silvani Transportation Consultants, Associated Entitlements Resolution, Exhibit C), indicating that the existing buildings throughout the Campus are fully leased, and the current parking supply has historically exceeded demand (TDM plan submitted in December 2019, pre-COVID conditions).
The 751 Gateway project is proposing a robust TDM plan that must ultimately meet an alternative mode shift of 40%, providing strong support for the reduced parking request. As described previously in the circulation section of this staff report, the applicant is making significant contributions to first-and last-mile transit connection strategies, emphasizing their continued commitment to reducing single-occupancy vehicle trips for employees.
With any proposed parking reduction, the primary concern is impact to surrounding properties and the on-street parking supply. In this case, no impact to street parking is expected since there is no permitted street parking on Gateway Boulevard. Additionally, parking throughout the Gateway Campus is shared among many buildings and monitored by on-site property management staff. Staff believes that the proposed parking will be sufficient and the reduction in parking supports the project’s effort to promote and enhance alternative modes of travel. The parking reduction also supports the City’s overall goals of reducing single-occupancy vehicle trips, and in turn, reducing vehicle miles traveled (VMT).
Transportation Demand Management (TDM) Plan
The proposed project will implement a TDM Plan pursuant to the SSFMC Chapter 20.400, Transportation Demand Management, which contains the City’s TDM requirements. The TDM requirements apply to all nonresidential development expected to generate 100 or more average daily trips. The minimum requirements are to achieve 28% alternative mode share (AMS) with additional density bonuses allowed for higher use of alternative modes. In order to achieve a FAR of 1.25 as proposed for this project, the TDM Plan must achieve 40% alternative mode usage.
The TDM Plan indicates that the 751 Gateway project is well positioned to meet the AMS goal, as ARE has been coordinating with other large properties in the East of 101 Area on cooperative TDM measures, such as partnering with Genentech on allowing employees throughout the area to use the G-ride (Genentech bus). Additionally, the project site is just outside of the ½ mile radius of the new Caltrain station, with direct bicycle and pedestrian access, lending itself to successful TDM implementation. As previously discussed, the applicant will be contributing towards improved bicycle and pedestrian infrastructure both on- and off-site, and will participate in commuter shuttle programs, further incentivizing employees to commute via Caltrain and BART.
The TDM measures and programs proposed in the 751 Gateway TDM Plan support the above TDM goals and is anticipated to meet the proposed ultimate goal of 40% of peak hour trips being made by non‐single occupant vehicle modes such as transit, bicycles, walking, or other modes. As proposed, the 35% mode split target would be implemented upon occupancy of the project site, growing to a 40% AMS within four years of operation. The annual reporting requirements for the project will evaluate this TDM Plan for compliance with the as required under the City’s TDM Ordinance. The TDM Plan is structured as a flexible document, intended to shift and include additional measures as the market shifts, and depending on tenants’ needs and employee work characteristics.
DESIGN REVIEW BOARD
The City’s Design Review Board (DRB) reviewed the proposed project on October 15, 2019 (meeting minutes attached to this staff report, Attachment 1). The DRB was supportive of the project, liked the building architecture and site design, and recommended approval with several comments and recommendations (meeting minutes attached to this staff report, Attachment 1). Following the DRB meeting, the applicant submitted revised plans that addressed all of the board’s comments. A Condition of Approval has been included to ensure that the applicant addresses DRB’s recommendations prior to issuance of building permit.
ENVIRONMENTAL REVIEW
ICF Environmental Consultants, on behalf of the City, has prepared a Draft and Final Environmental Impact Report (EIR) for the 751 Gateway Boulevard Project, in accordance with the requirements of the California Environmental Quality Act (CEQA). The Draft EIR (Associated CEQA Resolution, Exhibit D) identified significant unavoidable impacts related to the CEQA topics of Greenhouse Gas Emissions (GHGs) and Transportation. The Draft EIR public comment period began on September 22, 2020 and ended on November 8, 2020. The Notice of Availability (NOA) of the Draft EIR was posted with the County Clerk, mailed to local, regional, State, and other public agencies (including the State Clearinghouse), and to nearby property owners and tenants. The Draft EIR was available on the City’s website for public review, and hard copies were available at the Planning Division to review upon request.
The Planning Commission held a public hearing on October 15, 2020 to solicit comments on the Draft EIR. The Final EIR must be certified by the City’s project approving body (the Planning Commission in this case) along with consideration of the project entitlement applications.
Potentially Significant Impacts
The Draft EIR identifies potentially significant impacts that could result from the project, summarized in the Executive Summary (Chapter 2, Table 2-1) of the document. A lead agency (here, the City of South San Francisco) may not approve a project that may result in significant impacts unless the lead agency finds that changes or alterations that will avoid or substantially lessen the impacts have been required or incorporated into the project, that such changes or alterations are within the responsibility of another jurisdiction, or that specific considerations make mitigation of the impacts or alternatives to the project infeasible.
Of the identified potentially significant impacts in the Draft EIR, some may be reduced to less-than-significant levels through the implementation of mitigation measures and a Mitigation Monitoring and Reporting Program (MMRP) (Associated CEQA Resolution, Exhibit C).
The following CEQA categories have impacts that can be reduced through mitigation:
• Air Quality
• Biological Resources
• Cultural Resources
• Energy
• Geology and Soils
• Greenhouse Gas Emissions
• Noise and Vibration
• Transportation
Significant and Unavoidable Impacts
A significant and unavoidable impact is an impact that cannot be mitigated to a less than significant level if the project is implemented, because no feasible mitigation has been identified. The project would result in the following significant unavoidable impacts relating to vehicle miles traveled (VMT) in the Transportation and Greenhouse Gas Emissions categories. For the potentially significant impacts on VMT, feasible mitigation measures have not been identified, have uncertain feasibility, or may not be effective in reducing the impacts to a less than significant level. Thus, the following impacts are designated as significant and unavoidable:
Impact GHG-1b: The proposed project would generate GHG emissions, either directly or indirectly, that may have a significant impact on the environment during operation.
Impact GHG-2: The proposed project would conflict with an applicable plan, policy, or regulation adopted for the purpose of reducing the emissions of GHGs.
Impact TR-1: This project would have a significant impact on VMT, related to transportation.
The project includes mitigation measures to reduce the project impacts related to VMTs, including contributions to and participation in first- and last-mile connections, which will help to reduce VMT and GHG emissions from passenger vehicles. However, since some of the first- and last-mile improvements are not fully funded and their implementation timeline is uncertain, the mitigation measures cannot be guaranteed to reduce the project’s HBW VMT to a less than significant level. Thus, these impacts will be significant and unavoidable with mitigation.
It is important to note that State Bill (SB) 743, which contains CEQA requirements related to VMT, contains an exemption for employment center projects within a transit priority area, which would be a ½ mile radius from the Caltrain Station. The 751 Gateway project site falls just outside of the ½ mile radius, thus is not exempt from the VMT CEQA analysis, but would still able to take advantage of the transit-accessible location, and opportunities to reduce VMT.
Response to Comments (RTC) Document / Final EIR (FEIR)
The 45-day public comment for the Draft EIR lasted from September 22 to November 8, 2020. The City received comment letters from the Health Plan of San Mateo (a neighboring property at 801 Gateway) and Department of Toxic Substances Control during the 45-day public review period for the Draft EIR. The City also received a comment letter from the California Department of Transportation (Caltrans) on November 9, the day after the comment period ended.
Following the close of the public comment period, ICF Environmental Consultants, on behalf of the City, prepared the Response to Comments (RTC) document. A Notice of Availability and Release, along with the RTC Document (that document along with the Draft EIR make up the Final EIR) was published on January 14, 2020. The Final EIR can be found online on the City’s website www.ssf.net/ceqadocuments <http://www.ssf.net/ceqadocuments> and is also attached to the Associated CEQA Resolution, Exhibit A.
Comments on the Draft EIR
Health Plan of San Mateo (801 Gateway Boulevard)
The comment letter expressed concern about bus traffic resulting from the project, requests information about burning waste, requests information about vehicle and pedestrian traffic, expresses concern about construction impacts, requests information about air quality impacts during and after construction, requests information on new road signage, and requests information on the impact on sewer and water supply pipes.
Department of Toxic Substances
The comment letter requests information on the proposed project’s impact to the Homart Development Corporation site (which is a controlled recognized environmental condition (REC)).
Caltrans
The comment letter requests clarification on traffic volume data and analysis, and clarification on the analysis of queue lengths at off-ramps due to the opening of the US-101 Express Lanes project.
October 15, 2020 Planning Commission Public Hearing Comment
The comment asks about the significant and unavoidable impacts related to VMT, and whether or not this would have been a project impact prior to the implementation of SB 743.
Mitigation Monitoring and Reporting Program and Statement of Overriding Considerations The City has prepared a Mitigation Monitoring and Reporting Program (MMRP) and Statement of Overriding Considerations (SOC) for the 751 Gateway project pursuant to Public Resources Code Section 21086.6 and 21081, respectively. The MMRP is organized to correspond to environmental issues and significant impacts discussed in the EIR, and the City will use it to track mitigation measures, timing for implementation, responsible party, the action, and ongoing monitoring responsibility. The complete MMRP is attached to the Associated CEQA Resolution as Exhibit C.
The SOC is included with the required CEQA Findings and attached to the Associated CEQA Resolution as Exhibit B. The Planning Commission must adopt the Statement of Overriding Considerations for those impacts identified as significant and unavoidable in the 751 Gateway Boulevard Project EIR (State Clearinghouse No. 2020010281) and the project cannot be approved unless a SOC is adopted which balances the benefits of the proposed project against the unavoidable GHG and transportation impacts.
Staff supports adoption of the SOC because the 751 Gateway Boulevard project will provide economic, social, technological, and other benefits that balance the significant and unavoidable impacts of the project related to transportation and GHG emissions. Project benefits that balance the impacts include:
• Creating state-of-the-art office and R&D facilities consistent with the General Plan designation of the site, and General Plan goals and policies;
• Promoting the City’s ongoing development of the East of 101 Area into a nationally recognized biotechnology and R&D center that will attract other life science uses and provide quality jobs for the City;
• Redeveloping underutilized parcels within the project site at a higher density to take advantage of the opportunities offered in the East of 101 Area to build on and improve the Gateway Campus as a vibrant office and R&D campus;
• Maximizing alternatives to automobile transportation to further the City’s transportation objectives by emphasizing first- and last-mile connections, TDM strategies, and bicycle and pedestrian access, and
• Providing a positive fiscal impact on the City through the creation of jobs, enhancement of property values, and generation of property tax and other development fees
CONCLUSION
The proposed 751 Gateway Boulevard R&D/office project is consistent with both General Plan goals and the Zoning Ordinance requirements. As proposed, the project will construct a state-of-the-art R&D and office building with enhanced connectivity and linkages within the Gateway Campus and improvements to the East of 101 public. Further, the proposed project is consistent with the City’s ongoing development of the East of 101 Area into a nationally recognized biotechnology / R&D center, and ultimately will provide quality jobs in South San Francisco. For these reasons, staff recommends that the Planning Commission conduct a public hearing, and take the following actions:
1. Adopt a resolution making findings and certifying the Environmental Impact Report EIR19-0004, including adoption of a Mitigation Monitoring and Reporting Program and Statement of Overriding Considerations; and,
2. Adopt a resolution making findings and approving the entitlements for Planning Project P18-0064, including Precise Plan PP20-0004, Use Permit UP19-0013, Design Review DR19-0035, and Transportation Demand Management Program TDM19-0006, based on the attached draft findings and subject to the attached draft Conditions of Approval.
Attachment
1. Design Review Board Comment Letter, October 15, 2019
Associated Resolutions
1. CEQA Resolution (20-1025)
A. Final EIR (FEIR)
B. CEQA Findings and Statement of Overriding Consideration (SOC)
C. Mitigation Monitoring and Reporting Program (MMRP)
D. Draft EIR (DEIR)
2. Entitlements Resolution (20-1026)
A. Draft Conditions of Approval
B. 751 Gateway Project Plans, Prepared by RMW Architecture & Interiors
C. Proposed TDM Plan, Prepared by Silvani Transportation Consultants