May 11, 2004
SUBJECT: Amendment to Fair Oaks Business Park Conditions, Covenants, and Restrictions
REPORT IN BRIEF
City Council is being asked to authorize the City Manager to sign an Amendment to the Fair Oaks Business Park Conditions, Covenants, and Restrictions (CC & R’s) to allow residential development on five parcels along Weddell Drive. The City owns an industrial property at 1010-1024 Morse Avenue which is part of the Business Park. As a major partner in the Business Park, the City must ratify any changes to the CC &R’s.
Staff from the departments of Public Works, Community Development, and the Office of the City Attorney reviewed the amendment and recommend approval. The amendment would allow residential development which is consistent with current City zoning at these locations, would support the City’s Futures Study, and would not significantly impact operations at the City’s industrial park.
BACKGROUND
The City-owned industrial park at 1010-1024 Morse Avenue is part of the larger Fair Oaks Business Park (Attachment B). The City purchased the industrial park in 1991 for use as a future neighborhood park. The Business Park was created in 1975 by Koll Real Estate to establish an industrial zone in the north part of the City. The Conditions, Covenants, and Restrictions (CC&R’s) that were used to create the Business Park specifically restrict residential development.
On April 2nd, the City received a letter from Cornish and Carey Commercial Real Estate in Santa Clara requesting the City approve an amendment to the Conditions, Covenants, and Restrictions (CC & R’s) of Fair Oaks Business Park (Attachments A and C). This amendment would remove five parcels from the Business Park area in order to allow residential development at these locations.
These parcels are part of a project by Classic Communities to provide new residential housing in the City’s Futures Study Area, bordered by Fair Oaks and Morse Avenues, Tasman and Weddell Drives (Attachment B).
DISCUSSION
Public Works staff met with the City’s Planning Officer and the Senior Assistant City Attorney, to discuss this amendment. Discussions centered around 3 major questions:
- Whether this residential use was consistent with City zoning
- Whether this residential use would be supported by the City’s Futures Study, and
- Whether this residential development would have any operational impact on the City’s industrial park on Morse Avenue.
The area to be developed is currently zoned for transition from Industrial to Residential (ITR). Therefore, a residential development would be consistent with City zoning on these five parcels.
The area to be developed is also included in the City’s Futures Study as an area that is desirable for residential development.
The City owned industrial park at 1010-1024 Morse Avenue is adjacent to two of the five parcels that would be converted to residential use. Since most of the tenants at the park use their space for storage and do not have staff on site, staff believes a residential use should only minimally effect operations at the industrial park.
FISCAL IMPACT
No fiscal impact is expected as a direct result of amending the CC&R’s of Fair Oaks Business Park.
PUBLIC CONTACT
Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and the City Clerk’s Office.
ALTERNATIVES
1. Authorize the City Manager to sign an Amendment to the Fair Oaks Business Park Conditions, Covenants, and Restrictions to allow residential development on five parcels within the Park.
2. Instruct staff not to sign the Amendment.
RECOMMENDATION
Staff recommends Alternative #1: Authorize the City Manager to sign an Amendment to the Fair Oaks Business Park Conditions, Covenants, and Restrictions to allow residential development on five parcels within the Park.
Prepared by:
Michael A. Chan
Senior Administrator/Property Manager
Reviewed by:
Marvin A. Rose
Director, Public Works
Approved by:
Amy Chan
City Manager
Attachments:
A – Letter from Cornish and Carey dated April 2, 2004 pdf.file
B – Map of Project Area pdf.file
C – Amendment to Fair Oaks Business Park CC&R’s pdf.file