Facebook plans clear hurdle for campus
Project proceeds after city leaders negotiate $10.7M in benefits
MENLO PARK — An expansion that could bring up as many as 6,550 additional Facebook employees to Menlo Park has cleared another hurdle.
It took a little dealing for it to happen — and $10.7 million.
Because the tech giant’s plan to enlarge its headquarters in Belle Haven exceeds what city zoning rules allow, the city bartered a community benefits package in exchange for allowing the bonus development.
Facebook already had preliminary approval to build two planned office buildings and a hotel up to 75 feet high — 40 feet higher than allowed. The floor area for the three buildings, at roughly 1.3 million square feet, will be allowed to exceed half of the site.
On Tuesday night, the Menlo Park City Council voted 4-0, with Mayor Richard Cline absent, to approve a term sheet, which as City Manager Alex McIntyre put it, details the project’s “revenue stream” to the city.
“It really reflects a goodfaith effort to really address some impacts on our community,” Councilman Peter Ohtaki said. “I really appreciate that it’s not just, ‘here’s a check.’ ”
As well as direct payments to the city, a council subcommittee made up of Cline and Mayor Pro Tem Kirsten Keith negotiated for roughly $10.7 million in benefits, including initiatives to address transportation and housing concerns. Keith said the initiatives were based on requests from the community.
Councilman Ray Mueller touted a requirement that Facebook subsidize rents for 22 units, to the tune of $2.15 million over five years, in Greenheart Land Co’s 195unit market-rate development at 777 Hamilton Ave. The subsidized units would be geared for local teachers, according to Facebook.
But East Palo Alto resident Kyra Brown said the touted benefits only “address the low-hanging fruit,” and noted that a $350,000 housing inventory study is pending.
“Facebook has agreed to do this study only after the proposed project is approved, but why not do the study first?” said Brown, social justice program director for Youth United for Community Action.
Patti Fry, a former planning commissioner, said it was premature for the city to approve the project’s term sheet given all the questions raised in the draft impact report.
“Specific to transportation impacts, I have not seen if there is a list of things that needs to be done ... (or) the list of what the community wants,” Fry said.
John Tenanes, Facebook’s vice president of facilities and real estate, said the company would continue to address community needs beyond the terms set in the agreement.
“Facebook’s community involvement and collaboration with our neighbors will remain high,” Tenanes said. “Facebook’s in this for the long haul.” Other terms to which Facebook agreed:
Contribute $1 million to fund future recommended work arising from the Dumbarton Corridor Study launched by SamTrans, which received a $1 million contribution from Facebook last year. The company also committed $1 million to sponsor a regional forum with Menlo Park, East Palo Alto and San Mateo and Santa Clara counties on possible ways to activate the corridor sooner than later, such as through a designated bus rapid transit or light-rail line.
“This isn’t going to solve these regional challenges; however, it is a step in the right direction,” said Facebook public policy manager Juan Salazar.
Adina Levin, who serves on the city Transportation Commission but spoke as a resident, urged the city to add a clause in the agreement allowing terms with the company to be renegotiated when significant Dumbarton improvements occur “that will benefit Facebook.”
Commit $100,000 toward a citywide transportation program being crafted as part of the city’s General Plan update. Facebook will share practices that keep half of its workforce out of single-occupancy vehicles. The city’s update calls for a 20 percent reduction in car trips at future office developments. Levin said Facebook’s expertise could help smaller tech firms partner on carpool programs and shared shuttles to and from Caltrain.
Commit $700,000 to fund the design of a pedestrian/bicycle path between East Palo Alto and the Redwood City Caltrain station. Salazar said SamTrans owns 100 feet of right of way along the tracks, and the contribution could initiate the long-sought SamTrans project.
Commit to develop at least 1,500 housing units on an undeveloped 56-acre campus east of Willow Road, 15 percent of which would be affordable and targeted for low-income workers.
Commit $800,000 to fund the year-round operation of Belle Haven Pool and a Belle Haven community fund for five years.
Contribute $1 million toward maintenance and operations of Bedwell Bayfront Park.
The term sheet approval doesn’t finalize any aspects of the project, according to senior planner Kyle Perata. “Nothing the council does tonight precludes them from actions on the overall project,” Perata said before the meeting. “This is just one step in the process.” Staff is putting together the project’s final impact report, which will be publicized 10 days before a Planning Commission review. It would then need the council’s final approval.