With Stanford University's bid to dramatically expand its campus entering a critical phase, the university doubled down Tuesday on its demand for a development agreement with Santa Clara County and suggested that it would not accept the county's approval of its growth plan without such a deal.
Stanford made the bold announcement during Tuesday's meeting of the Santa Clara County Board of Supervisors, which is scheduled to review Stanford's proposed general use permit over a series of three hearings between October and early November. The Tuesday workshop on the permit gave the supervisors and the community a chance to gather some background about Stanford's growth proposal before the formal public hearing begins on Oct. 8.
If approved, the permit would allow Stanford to construct 2.25 million square feet of new academic development along with facilities for 2,600 student beds, 550 housing units for staff and faculty, and 40,000 square feet for child care centers and trip-reducing facilities. In June, the Planning Commission recommended approving the growth plan but with one key and controversial provision: a requirement for Stanford to build at least 2,172 new housing units, which roughly quadruples the number the university outlined in its proposal.
One major sticking point between Stanford and the county was whether or not the two sides should move ahead with talks of a development agreement — a negotiated contract that would allow both sides to propose requirements and community benefits that go beyond the county's regulatory requirements. The county agreed last year to authorize two of its supervisors — Joe Simitian and Cindy Chavez — to enter into negotiations with Stanford over such an agreement. The negotiations fell apart last April, however, when Stanford reached a separate agreement with the Palo Alto Unified School District on a package of benefits worth an estimated $138 million.
That deal hinged, however, on the county's approval of a broader development agreement with Stanford — a condition that Simitian and Chavez saw as Stanford's attempt to get leverage over the county. Once news of the school deal broke, the two supervisors abruptly halted the negotiations over development agreement. Since then, the county has continued to review Stanford's application through its typical process, which involves certifying the Environmental Impact Report, imposing conditions of approval and going through public hearings in front of the Planning Commission and the Board of Supervisors.
But while the Board of Supervisors wasn't planning to discuss the aborted negotiations over the development agreement Tuesday, the topic returned to the board with a vengeance when Supervisor Dave Cortese attacked county staff for failing to negotiate with Stanford in good faith. After learning that the development-agreement negotiations were led by the ad hoc committee of Simitian and Chavez with little participation from county staff, Cortese accused County Executive Jeff Smith of "running a rogue operation."
"That's about as derelict as anything I've ever heard from anyone in government that I've ever been in a governance position to supervise ... or keep on my payroll," Cortese said.
Cortese said he was frustrated by the fact that the board hasn't been updated about the negotiations with Stanford since it appointed the committee to negotiate with the university.
"I don't like being in the position of being in the dark as to what's going on," Cortese said.
County staff, for its part, has consistently held the position that while it is authorized to negotiate a development agreement, it is not required to do so. Stanford's prior general use permit, which the county approved in 2000, did not require a development agreement and neither has any other development that the county has ever reviewed.
The development agreement, which Stanford strongly hopes to achieve, would dramatically change the dynamic in the tense negotiations between the university and the county, shifting the county's role from that of a regulator to that of a partner. County staff has been loath to make that shift, arguing that it would be important to first determine the requirements that Stanford would have to meet before deciding what other benefits and concessions the county should consider in a development agreement negotiation.
Smith said Tuesday that he believes development agreements are "only useful and good where it's fairly clear exactly what other requests are being made outside the normal process going through planning."
"In this situation, we have a complex and very complete planning document with lots of conditions of approval. It already went through the Planning Commission and is coming to the board for action. Trying to superimpose the development agreement on top of that is a formula for confusion and not a good approach, in my opinion," Smith said.
After hearing Smith's response, Cortese said he thinks it's "absolutely absurd," given the Board of Supervisors' direction from a year ago, for staff not to take a more proactive approach on the development agreement and by not making a counterproposal to Stanford.
Stanford has also consistently pressed the county to negotiate an agreement, which university officials argue is the best way to provide the community with "front-loaded benefits" and provide Stanford with long-term certainty that it will be able to grow. On Tuesday, Catherine Palter, Stanford's associate vice president for land use and environmental planning, suggested that such an agreement would be a necessary component of whatever gets approved.
"Since many of these community benefits will need to be provided upfront, we have concluded that it will not be possible to accept a new general use permit without a corresponding development agreement," Palter said. "Such an agreement will enable us to satisfy the county's requests and provide the kinds of significant benefits our neighbors seek.
"In return, Stanford receives the predictability that a development agreement affords. We see a permit and the development agreement as a package."
While some residents touted Stanford's academic reputation and argued that the university shouldn't be treated like other developers, Simitian pointed out that Stanford already gets special treatment. The general use permit process, which effectively allows the university to build any project it wants within a 10- to 20-year period without getting the county's approval (provided the project is consistent with the permit), is a tool that exists only for Stanford, he noted.
Stanford has always been able to get the approvals it's been seeking from the board. The county, he said, has a "128-year history where every single application (from Stanford) has gotten a yes."
"It seems to me there's a pretty good track record and a case to be made for pretty responsive if not generous spirit by folks here at the county with respect to the mission of the organization and the development requests," Simitian said, referring to Stanford.
The board's discussion followed comments from a few dozen public officials and residents, most of whom urged the board to make sure Stanford's expansion doesn't aggravate the area's already considerable housing and traffic problems.
East Palo Alto Vice Mayor Regina Wallace-Jones lauded Stanford as an educational institution but warned about the traffic and housing challenges her city is already experiencing. She said her city would like to see Stanford contribute $20 million for construction of affordable housing in her city and another $15.5 million to help fund necessary transportation projects.
"As we delved into the plan for housing, a lot of the workers, some of which are part time, some of which are faculty, are not accounted for in the housing. And many of those housing units are sought in the city of East Palo Alto."
Menlo Park City Councilwoman Betsy Nash said her city, like others, "struggles every day with two large and growing issues: One is inadequate housing availability and housing affordability, and the other is traffic congestion that chokes our streets.
"Menlo Park residents, like others in Santa Clara and San Mateo counties, are fed up with the situation, and they elected us to do something about it," Nash said.
Mountain View Mayor Lisa Matichak lauded the proposal in her letter to the Board of Supervisors. Providing on-campus housing, she wrote, "would be a leading step by Stanford to help address our region's housing crisis and reduce potential transportation impacts by allowing faculty, staff and students to walk or bike to work.
"If new housing is not constructed on campus, then there would be greater housing and transportation impacts to the City of Mountain View and other nearby cities," Matichak's letter states. The City appreciates Stanford providing all of its housing on-campus to fully mitigate the significant residential impacts from its proposed academic facility expansion."
Palo Alto Mayor Eric Filseth focused on the potential traffic impacts of Stanford's expansion and suggested that the university be required to make significant contributions to big-ticket transportation projects.
"There is no dispute that the City of Palo Alto will be significantly burdened by the addition of nearly 3.5 million square feet of new development," the letter signed by Mayor Eric Filseth states. "Most acutely, the City will experience an increase in commuter congestion on its roadways and multi-modal networks that will extend travel times and exacerbate commuter frustrations."
The letter argues that to fully mitigate its impacts, Stanford needs to provide "fair share" payments toward separating the Caltrain corridor from streets at intersections (the city estimates that Stanford's share in the project should be $159 million), improving the downtown transit center ($99 million) and performing roadway maintenance on city streets that serve the campus ($1.2 million).
School impacts are also an area of concern in Palo Alto. School board President Jennifer DiBrienza and Vice President Todd Collins both stressed the importance of having Stanford contribute to local education, given the number of new students that the university's expansion would bring to the district.
"We need to make sure the expansion of one great educational institution doesn't drag down another," Collins told the board. "Please, please insist on an agreement that protects Palo Alto schools."
The topic of school impacts is expected to take center stage at the Oct. 22 meeting of the Board of Supervisors, which will take place in Palo Alto. In preparation for that meeting, Simitian and Chavez issued a memo asking staff to determine the expected enrollment increase in the Palo Alto Unified School District associated with Stanford's expansion, the impact of the expansion on per-pupil funding in the school district and other information.
The board's next review of Stanford's GUP application is scheduled for Oct. 8.
Comments
Menlo Park: Central Menlo Park
on Sep 25, 2019 at 12:00 pm
on Sep 25, 2019 at 12:00 pm
To put it bluntly - screw the "nonprofit" Robber Baron - this isn't the 1860s thru 1880s. It's time to review the corporate university's nonprofit status and start taxing it.
Registered user
Menlo Park: other
on Sep 25, 2019 at 1:37 pm
Registered user
on Sep 25, 2019 at 1:37 pm
Agree with whatever. Stanford has far too much power and money and they are allowed to do things that make life in adjacent communities difficult. Time for them to be a for profit enterprise and taxed accordingly. One doesn't accumulate the billions they have without making a profit.
Registered user
Woodside: Woodside Heights
on Sep 25, 2019 at 1:42 pm
Registered user
on Sep 25, 2019 at 1:42 pm
I don't see a robber baron here. There doesn't seem to be any question that Stanford expects to contribute significant $ to the surrounding community. Also, under the law, Stanford has both taxable and non-taxable activities, and if there is any violation of the law with respect to the classifications, I would expect those who are being shortchanged to do something about it. They have every incentive to do so. Wrt Stanford will contribute funds, per the article and as previously reported: "last April... Stanford reached a separate agreement with the Palo Alto Unified School District on a package of benefits worth an estimated $138 million." Wrt the article's reporting on the present status, Stanford appears to be seeking some assurances about the future so the University can plan, and in exchange is willing to offer payments such as the package to the Palo Alto schools. If I understand the article correctly, Stanford wants to negotiate the rest of what might be given in a planned exchange, and there are unsurprisingly several cities with requests for significant $ contributions to transportation and housing, examples of which are listed in the article. We all know there are very real needs in these areas. A win-win would (1) allow the University to continue to strive to excel at the international level, and (2) help the surrounding cities and counties solve our pressing traffic and housing problems. I personally like the idea of even more housing on campus to reduce commute traffic, though I understand Stanford's point that not all faculty and staff will want to live on campus... therefore to the extent there is a gap, contributions to housing off-campus and traffic mitigation makes sense, and as mentioned, is being asked for. The present issue seems to be procedural, based on the article, that the County staff doesn't want to enter into those negotiations now, while Stanford understandably wants to work the package, or packages, out in parallel so they know wholly where they stand. These are strategies being pursued by the players. Despite the posturing, at the end of the day, we can be sure money will flow from Stanford to the community, and the community will allow (and even require) Stanford to build many things. I hope the parties will think win-win. For example, while the Hospital expansion and the new Andreessen Emergency/Trauma Center will add to the already bad traffic situation on Sand Hill Road, it's a tremendously valuable community resource that will save lives. I for one am very glad it's been built despite the fact that I am cursing our traffic every day.
Menlo Park: other
on Sep 25, 2019 at 2:00 pm
on Sep 25, 2019 at 2:00 pm
The item that bothers me is that the logic applied to Stanford expansion and the traffic issues that may or may not come with it is not applied to other employers in the area (Facebook, Google, etc.). Menlo Park may be getting a ton of traffic, but how much of that could be a result of the Facebook campus - same goes with Mountain View and the dozens and dozens of Google buildings (and resulting cars). Both of those companies weren't required to build a bunch of new housing when they moved in/expanded their presence.
I know this is a bit of "whataboutism," but it's not an empty comparison or an attempt to deflect the issue. The more employees enter the area (whether at Stanford or a high-tech company), the more traffic occurs, the more housing is needed, etc. Singling out one organization (Stanford) seems to be an attempt at squeezing money out of the one group the county knows can't up and relocate to a new county/city/state.
Registered user
another community
on Sep 25, 2019 at 2:49 pm
Registered user
on Sep 25, 2019 at 2:49 pm
How about capping employment until the housing and traffic situation is under control. Radical maybe but consider the alternatives.
Registered user
Atherton: West Atherton
on Sep 27, 2019 at 11:14 am
Registered user
on Sep 27, 2019 at 11:14 am
How bout before we approve more building from Stanford, Facebook, and other huge, successful traffic inducing companies and institutions in the area (Google etc.), we require them to contribute a few billion to fund a below grade Cal train from Atherton or Menlo Park to Palo Alto or Mountain View?