by Barbara Wood
Special to the Almanac
Just what Facebook will be asked to provide to Menlo Park in return for being allowed to house as many as 6,600 employees on its current campus will be addressed by the Menlo Park City Council when it meets next Tuesday at 7 p.m. in the Menlo Park City Council Chambers, 701 Laurel St.
After 10 weeks of negotiations between Facebook and city officials, a draft of the terms for the development agreement between the social networking giant and the city was released late today (April 12).
Facebook is also seeking permission to eventually expand even further by building new offices and a parking garage on the Constitution Drive site that could house another 2,800 employees, but that development will be the subject of future negotiations and is not part of this development agreement.
The staff report on the draft agreement can be viewed here.
The agreement and letter from Facebook are here
Among the development agreement terms are:
Facebook will make annual payments to Menlo Park, to make up for the sales taxes that a different type of business might pay, for as long as Facebook has more than the currently allowed 3,600 employees on campus. The payments would be $800,000 per year for years one to five; $900,000 per year for years six to 10; $1,000,000 per year for years 11 to15; and then adjusted annually above $1,000,000 based on changes in the Consumer Price Index (CPI) for the remaining years.
The first 10 years of payments are guaranteed, but after that Facebook can revert to the previous cap of 3,600 employees or lower the trip cap and reduce the payment.
Facebook will make a one-time-payment to the city of $1.1 million for the city's unrestricted use toward capital improvement projects.
Facebook will make an additional payment to the city if the city secures other funds to pay for measures that Facebook must implement to meet requirements in the environmental impact report, such as transportation improvements.
Facebook will create a local community fund that it will administer with an initial $500,000 contribution.
Facebook will create a high school internship program.
Facebook will sponsor job-training programs and events.
Facebook will provide housing assistance through potential investments in low-income housing tax credits and in potential contributions to a housing development project.
Facebook will cooperate to underground electrical transmission lines.
Facebook will work to help close the Bay Trail Gap.
Facebook will participate in the Caltrans Adopt-a-Highway program for five years.
Facebook will continue the "Facebucks" program for three years and make other efforts to encourage employees to patronize Menlo Park businesses.
Facebook will promote local volunteer opportunities for Facebook employees.
Facebook will enhance proposed improvements to the undercrossing of Bayfront Expressway.
Facebook will explore the creation of a Willow Road business improvement district and contribute seed funding of up to $50,000.
Facebook will make ecologically sensitive improvements to the existing public trails around the perimeter of the east campus.
When performing work that might affect the baylands, Facebook will hire an environmental consultant.
Facebook will cooperate with the Don Edwards San Francisco Bay National Wildlife Refuge and adopt various policies to protect the local wildlife and ecosystem.
Facebook will maintain and improve nearby levees.
Facebook will adhere to a vehicle trip cap of 15,000 per day, with no more than 2,600 each in the morning and evening commute hours.
Facebook will try to get an LEED gold award for the energy efficiency of every building on the campus.
Facebook will pay for bicycle and pedestrian improvements in Menlo Park and East Palo Alto.
Facebook will pay up to $1 million for pedestrian crossing improvements at Willow Road and US-101.
Facebook announced it would be moving to Menlo Park, taking over the former Sun Microsystems site at Willow Road and Bayfront Expressway, in February 2011, moving onto the campus the last of its nearly 2,000 local employees by late December of last year.
This February the company announced plans to sell its stock to the public, with the terms of the initial public offering putting the value of the company at $5 billion.
Under state law development agreements enable a city to grant a longer-term approval in exchange for demonstrable public benefits. The terms of the development agreement must be acceptable to both parties and the terms cannot be imposed.
Facebook has entered into a separate agreement with the Menlo Park Fire Protection District, addressing some of the district's concerns.