The Sunnyvale Multi-modal Transit Station project as designed is dependent upon an exchange of land between the City of Sunnyvale and Murphy Square. The new parking structure would be built on land currently owned by Murphy Square. The proposal is to exchange the existing Murphy Square parking lot (to the west of the Murphy Square commercial building) for the City parking lot on the corner of Evelyn and Sunnyvale Avenues, including the strip of land behind the Murphy Square commercial building. The replacement of public parking for the corner lot and the displaced Murphy Square parking would be accommodated in the new parking structure.

An independent appraisal for the two properties indicated a similar square foot value for both properties; the Murphy Square property is slightly larger. The proposed land exchange provides 62 parking spaces in the parking structure for the exclusive use of Murphy Square tenants from Monday through Friday during business hours to compensate for the loss of parking resulting from the CalTrain parking garage. The resolution approving the exchange of parcels is Attachment A. The legal descriptions of the parcels and details of the land exchange are noted in the Land Exchange Agreement (Attachment B).

The benefits to the City include the construction of new parking spaces in the area to support the expanded use of public transit as well as support the existing businesses in the area. Funding for this joint project has come from a variety of sources; including, the City of Sunnyvale, the Santa Clara Valley Transportation Authority (VTA), the Peninsula Corridor Joint Powers Board (PCJPB), and the Metropolitan Transportation Commission (MTC). (Details regarding project costs and funding sources are contained in a separate report to accompany the Cooperative Agreement among the sponsors).

The Sunnyvale City Council affirmed the Mitigated Negative Declaration and approved the Special Development Permit for the parking garage and transit station on November 9, 1999. Staff is recommending that the City Council adopt the attached Resolution to approve an exchange of parcels between the City of Sunnyvale and Murphy Square, A Limited Partnership to facilitate construction of the Sunnyvale Multi-modal Transit Station and to authorize the City Manager to execute any and all documents.

City staff from Community Development and Public Works, VTA staff, PCJPB staff and the owners of Murphy Square have been collaborating on a multi-modal public transit center in the downtown. This center would enhance the City’s downtown by providing improved transit accessibility. As important, the project addresses current and anticipated CalTrain parking needs and increases the coordination of the intermodal bus/train connection in Sunnyvale.

In 1998, the City, the PCJPB and VTA jointly developed a Multi-modal Transit Station Concept Plan to guide the development of the project. The plan coordinated with and supported the City’s plans for the redevelopment of downtown. The study determined the needs of transit, vehicular, bicycle and pedestrian circulation into and out of the station, and determined the functional requirements for the Transit Station; including parking, ticketing, services, facilities and commercial opportunities. The study also included a conceptual plan of the parking structure, train station, and the physical linkage to the bus stop area and the proposed public plaza on Evelyn Avenue and Frances Street.

The 1993 Sunnyvale Downtown Specific Plan, the 1997 CalTrain 20-Year Strategic Plan, and the 1996 VTA Strategic Plan provided the basis for this concept plan. The City’s Specific Plan includes redevelopment of downtown Sunnyvale with mixed-use, transit-oriented development in the area immediately bordering the CalTrain station. The CalTrain strategic plan identified a need for additional parking and other improvements, while the VTA’s strategic plan called for bus service expansion. Currently, the CalTrain lot is full, and passengers are parking in the parking lots on the south side of Evelyn Avenue in an area that is approved for development.

The current Sunnyvale CalTrain Station has a building, outside boarding platforms, almost 200 parking spaces and passenger amenities (e.g. shelters, bicycle lockers and racks, and newspaper stands). The station is served by 68 weekday, 28 Saturday and 20 Sunday trains. The train count will increase in September, 2000. Shuttles take passengers to and from jobs that are not in walking distance. Additionally, VTA buses are located along Frances Avenue, which provides direct access to the train station.

During the weekdays, currently 594 people board and 358 debark during the morning peak period and 254 people board and 543 debark during the evening peak period. Throughout an average weekday 1363 people board and 1393 people debark at the downtown Sunnyvale CalTrain station. It is estimated that the number of people arriving at the downtown Sunnyvale station will increase significantly with the recently approved Mozart office development across the street.

The Downtown Specific Plan policy P.LUC-14 states:

"Consider a multi-modal transit station centered around the CalTrain Station and Evelyn Avenue."

The Redevelopment Plan includes:

"seeking opportunities to invest where activity will produce results such as: 1) identification and purchase of strategically located property as it becomes available and where it is important to accomplish the long-tern plan, and 2) investment in strategic parcels (including City owned land) where it would increase the potential for strategic land assembly and redevelopment activity.

When the planning study for the multi-modal center was begun, it was thought that the parking structure would be built entirely on CalTrain land. However, during study it became clear that the triangular configuration of the CalTrain land made it difficult to build an efficient and appropriately designed structure. One of the suggestions from the study was to use the Murphy Square parking lot and have a joint use structure, private/public partnership.

As discussions progressed, it became clear that the simplest approach for all parties would be to exchange the City-owned parking lot on Sunnyvale/Evelyn Avenues, including the strip behind the Murphy Avenue commercial building for the Murphy Square parking lot adjacent to the train station. This would give the City and Murphy Square clear titles to their respective parcels of land and would not encumber the title to the Murphy Square building. An independent land appraisal of the two sites was conducted. The appraisal resulted in an equal price per square foot for both parcels of land. The Murphy Square parcel of land is minimally larger.

Staff proposes that the City and Murphy Square exchange title to their properties for no consideration, but that Murphy Square be granted a parking and access easement on the City lot which would entitle them to exclusive weekday daytime use of 62 parking spaces in the new parking structure in perpetuity. Murphy Square will have use of a total of 128 parking spaces (62 in the parking garage and 66 on the new private parcel.).

Currently, Murphy Square has available 110 parking spaces between the lot west of the building and a five-year, $1200 per year, lease entered into in 1997 with the City of Sunnyvale for a narrow parcel adjacent to the railroad. The leased land represents approximately 17 parking spaces. Murphy Square is assessed annually for its prorata share of the Parking District.

The companion Development Agreement establishes a parking ratio of 3.2 spaces per 1000 square feet, which is consistent with the recently approved office development downtown. At this ratio, Murphy Square is required to provide 128 parking spaces. If no land exchange were to occur, then Murphy Square would be assessed $990 in FY 2000-2001 (128-110=18 x $55 = $990). Therefore, the value of the land exchange is equal to the annual Parking District assessment of $990 that will no longer be paid, plus the annual $1200 lease payment that will not be due the City. Murphy Square benefits by no longer having to supplement its available parking by means other than these new arrangements.

The City in turn receives a parcel of land that is slightly (4007 square feet) larger than it is exchanging; but, more importantly, is essential to the construction of the CalTrain parking garage as configured. (If the 4000 +/- square feet is valued at $50 per square foot, the value differential is $200,000.) There are no other properties that fulfill the land area requirement for the project as designed or as a viable alternative.

The parking structure will provide a benefit to the project area by providing parking for CalTrain and the VTA, easy access for VTA shuttles, as well as parking for the surrounding businesses in the downtown. It will provide additional parking to serve the businesses during the evenings and on weekends in the area and to facilitate additional public transit use to relieve congestion.

Staff is recommending that the City Council adopt the Resolution to approve an exchange of parcels between the City of Sunnyvale and Murphy Square, A Limited Partnership to facilitate construction of the Sunnyvale Multi-modal Transit Station and to authorize the City Manager to execute any and all documents.

The direct fiscal impact of the land exchange is related to the survey costs, legal descriptions and plats, title reports, and the creation of a parcel map. These costs are reflected in the City’s contribution to the Sunnyvale Multi-modal Transit Station. There is also foregone revenue to the City ($1200 per year lease payment), and the Parking District ($990 per year) that will be redistributed amongst the other assessees. As noted earlier, there is a separate report that will be coming to the Council requesting the authorization for the City Manager to execute a Cooperative Agreement for cost sharing, project management and construction. A future operations and maintenance agreement will also be prepared for City Council approval.

The exchange of parcels will enable the City to develop the parking garage and related transit station improvements. Both components of the project are important to its function and utility to the public. Various sources of funding have been secured and the City is seeking additional funding for the project since construction costs continue to grow.

This report was sent to the owners of Murphy Square and the report was noticed as part of the regular City Council agenda and posted on the site. In addition, notices were sent to individuals who have expressed an interest in this project.

The staff report for this project was posted on the City of Sunnyvale's Website and a copy of the report was provided at the Reference Section of the City of Sunnyvale's Public Library. The City Council Agenda was posted on the City of Sunnyvale's Website.

Staff recommends Alternatives #1.

Prepared by:

Gail A. Price
Principal Planner

Reviewed by:

Trudi Ryan
Planning Officer

Reviewed by:

David S. Boesch, Jr.
Director, Community Development

Approved by:

Robert S. LaSala
City Manager