REPORT TO PLANNING COMMISSION
SUBJECT
Title
Proposed Project: Related applications on a 1.16-acre site:
SPECIAL DEVELOPMENT PERMIT: To allow the redevelopment of a commercial site into four 3-story residential buildings with 28 townhome-style condominium units.
VESTING TENTATIVE MAP: To create 28 condominium units
Location: 845 Stewart Drive (APN: 205-21-010)
File #: PLNG-2025-0080
Zoning: MS/ITR/R3/PD (Industrial and Service with Industrial to Residential/Medium Density Residential/Planned Development Combining District).
Applicant / Owner: Julia Koppman Norton, City Ventures (applicant) / Jenab Family Ventures (owner).
Environmental Review: Categorically Exempt under California Environmental Quality Act (CEQA) Section 15332, In-Fill Development Projects (Class 32).
Project Planner: Wendy Lao, (408) 730-7408, WLao@sunnyvale.ca.gov
Report
REPORT IN BRIEF
General Plan: Medium Density Residential
Existing Site Conditions: One commercial building with a restaurant and other vacancies.
Surrounding Land Uses
North: Industrial/Office
South: Industrial/Office across Stewart Dr.
East: Industrial/Office across De Guigne Dr.
West: Industrial/Office
Issues: Concession and Waivers from Development Standards
Staff Recommendation: Approve the Special Development Permit and Vesting Tentative Map with the Findings in Attachment 2 and Subject to the Conditions of Approval in Attachment 3.
BACKGROUND
Description of Proposed Project
The project site is 1.16 acres in size and is currently developed with a 16,815 square-foot, one-story commercial building consisting of four tenant spaces, three of which are vacant and one occupied by a restaurant. The proposed project consists of demolishing the existing building and constructing 28 townhome-style condominiums in four three-story buildings. The project proposes to utilize the State Density Bonus Law and is requesting one concession and 16 waivers, as discussed in the Development Standards section of this staff report.
A Special Development Permit (SDP) is required for projects within the PD Combining District per SMC 19.90.010. A Vesting Tentative Map (VTM) is required for the creation of 28 condominiums per SMC Chapter 18.20. The findings to grant approval for a SDP and VTM are discussed in the Recommended Findings in Attachment 2.
See Attachment 1 for a vicinity map and mailed noticed area and Attachment 4 for the Project Data Table.
Previous Actions on the Site
The commercial building was constructed in 1974 and was originally used as a research and development facility. Over time, the site has accommodated multiple uses, including various technology companies, a print shop, and a restaurant. Currently, the building contains four tenant spaces, three of which are vacant and one occupied by Agape Grill and Bar restaurant. Prior to development, the site was an agricultural use.
The site is located in the East Sunnyvale Sense of Place Plan (ESSPP) area which was adopted in November 2015. In January 2025, the site was rezoned from M-S to add the ITR/R-3/PD combining districts to allow residential development. The applicant submitted an SB330 Preliminary Application on February 3, 2025, which locked in the development standards and fees in place at that time. There are no active neighborhood preservation complaints for the project site.
EXISTING POLICY
General Plan Goals and Policies: Key goals and policies from the Land Use and Transportation and Housing Chapters of the General Plan that pertain to the proposed project are provided in the Recommended Findings in Attachment 2.
East Sunnyvale Sense of Place Plan: Key goals and objectives from the ESSPP that pertain to the proposed project are provided in Attachment 2.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) requires the lead agency to analyze a project’s impact on the environment. The In-Fill Development Categorical Exemption (Class 32) in CEQA Guidelines Section 15332 relieves this project from CEQA provisions. Class 32 Categorical Exemptions include in-fill developments that are:
• Consistent with the General Plan and Zoning Ordinance;
• Within city limits on sites that are no more than five acres;
• Not on sites that include habitats for endangered, rare or threatened species;
• Not having a significant effect on traffic, noise, air quality or water quality; and
• On sites that are adequately served by utilities and public services.
Ascent Environmental, Inc., the City’s environmental review consultant, has prepared a Class 32 CEQA Checklist summarizing the proposed project’s qualifications for the exemption. As part of the analysis, Ascent also conducted a peer review of the applicant’s technical reports including a Phase I and Phase II and Environmental Site Assessment. Refer to Attachment 7 for the Class 32 CEQA Checklist and Attachments 8 to 11 for the technical reports and peer reviews.
DISCUSSION
Present Site Conditions
The 1.16 acre project site is located at the northwest corner of Stewart Drive and De Guigne Drive. Technology offices, including Apple, Inc. and Acellent Technologies, are located to the north and west, with a multi-family residential development located further to the north and a school located further to the west. To the east across De Guigne Drive is another technology office, Trimble, which is proposed to be replaced by a 370-unit multi-family residential development project currently under review. To the south across Stewart Drive is a multi-tenant building currently occupied by commercial, educational, and religious uses; additional industrial uses are located further south.
The existing 16,815 square-foot one-story building is approximately 16 feet in height. There is a surface parking lot to the north and west, and 21 trees around the perimeter of the site.
Site Layout and Architecture
The proposed project includes four residential buildings generally distributed across the site. The development consists of a five-unit building located at the northwest corner, a ten-unit building at the northeast corner, a three-unit building at the southwest corner, and a ten-unit building at the southeast corner. The site is organized around a 26-foot-wide, T-shaped drive aisle with vehicular access provided from both Stewart Drive and De Guigne Drive. Pedestrian access to the site is also provided from both streets. Five visitor parking spaces are also located near the Stewart Drive entrance. A shared usable outdoor space is located to the north between the two buildings.
The proposed buildings will be three stories tall, reaching approximately 41-feet and 8-inches height. There are 19 units with three bedrooms and nine units with an optional fourth bedroom. Each unit includes an attached two-car garage and private open space.
The architectural style is best characterized as Craftsman, featuring a variety of gable roof forms, vertical projections, and offsets that break up the massing along the building façades. Exterior materials include white stucco and brown cementitious siding with board-and-batten detailing. Select units incorporate grey brick veneer as an accent material on the ground floor. Staff is supportive of the design as it is complementary to the architectural style of the neighborhood. See Attachment 5 for architectural and site plans.
Residential Density
The applicable residential density requirement (“base maximum density”) is 24 dwelling units per acre, as prescribed by the General Plan Medium Residential Density land use designation. A minimum of 75% of the base maximum density is also required. The proposed density of 24 dwelling units per acre complies with this requirement.
Development Standards
The project complies with several applicable development standards in the SMC, such as floor area. The applicant proposes to utilize the State Density Bonus Law for one concession and 16 waivers. The Project Data Table in Attachment 4 summarizes the project’s compliance with development standards.
State Density Bonus Law
The project will include four units that will be available for sale to moderate income households. The affordability level qualifies the project for State Density Bonus Law and allows the developer to request one concession and unlimited number of waivers.
Concession: The project is entitled to one concession, which provides relief from compliance with an objective regulatory requirement that results in identifiable and actual cost reductions to the project. The applicant requests a concession to not plant street trees within the park strip along Stewart Drive, as required by the East Sunnyvale Sense of Place Plan, due to existing underground electrical lines located directly beneath the planned park strip that would be costly to relocate. Instead, the applicant is proposing to plant street trees at the back of the sidewalk along Stewart Drive as well as low vegetative plantings in the park strip.
Waivers: Unlimited waivers (reduction in development standards) are permitted if the applicant can demonstrate that compliance with the development standards would physically preclude them from constructing the proposed development with the allowed number of units. The applicant has provided a letter (see Attachment 6), which describes the 16 requested waivers and justifications. Below is a summary of the requested waivers and staff’s analysis:
1. Front Yard Setback: The project site is a corner lot with two street frontages. The city’s zoning code defines the narrower frontage as the front yard and the longer frontage as the reducible front yard. The applicant is proposing to provide 15-feet setback on De Guigne Drive where 20-feet is required, and to provide 21-feet setback on Stewart Drive where 12-feet is required. The requested waiver would enable the proposed project to maintain the existing residential setback pattern on Stewart Drive.
2. Rear Yard Setback: The project proposes to provide a 5-feet rear yard setback where a 20-feet is required adjacent to the office site at 835 Stewart Drives. The requested waiver enables the project to maximize the number of units in the development while also providing room for a larger setback adjacent to the northern property line to accommodate enhanced front entries and open space for the units in Buildings 3 and 4.
3. Building Height: The project proposes a range of building heights from 39-feet 5-inches to 41-feet 8-inches where a maximum building height of 35-feet is allowed. The proposed building height is comprised of approximately 9-feet interior plate height for each floor in the 3-story units; room between each floor for utilities, etc.; and pitched roof. The requested waiver is reasonable in that the proposed three-story and pitched roof design are similar to other townhome projects.
4. Lot Coverage: The project proposes 41.7% lot coverage where the maximum allowable is 40%. Lot coverage is comprised of all the units including the market rate which range in size from 1,899 to 2,329 square feet and Below Market Rate (BMR) Units which range in similar size. The requested waiver is reasonable in that the sizes of the market units are similar to other townhomes in the city and enables the developer to provide similarly sized BMR units pursuant to SMC 19.67.070.
5. Private Balcony Dimensions: The project’s balconies are 5 feet deep and 77.5 square feet which is less than the required minimum of 7-feet in any direction and 80 square feet minimum size. The requested waiver is reasonable in that the project also provides ground level open space for individual units.
6. Orientation: Buildings on corner lots are required to include at least one entry and direct pedestrian access from both street frontages. The buildings along De Guigne Drive do not have entrances fronting this street. The requested waiver is reasonable in that the project is designed with individual front entries in Buildings 1 and 2 facing Stewart Drive, and a larger setback along the northern property line for enhanced front entries and ground level open space for individual units in Buildings 3 and 4. Front entries along De Guigne Drive was explored; however, due to the interest in maximizing number of units, building constraints, and location of above ground equipment, it was challenging to orient front entries toward De Guigne Drive.
7. Parking Screening: Parking spaces within 100 feet of the public right-of-way are required to be located behind or inside buildings or in an underground parking facility. A surface parking lot with five visitor parking spaces is located within 100 feet of the public right-of-way and is not behind a building. The requested waiver is reasonable given that the project proposes landscaping to partially screen the 5-uncovered parking spaces.
8. Parking Setback: The minimum driveway throat length is 30 feet where parking is prohibited. The project includes one visitor parking space and approximately six inches of a second visitor parking space located within the drive throat length. The requested waiver is reasonable in order to maximize the number of parking spaces in the development given that no on-street parking would be available due to the existing bike lanes on Stewart Drive and De Guigne Drive.
9. Landscaped Areas: Three-foot-wide landscaped areas are required for the first 50 feet of vehicle access lanes. The project exceeds this requirement for the driveway leading to De Guigne Drive. However, for the driveway leading to Stewart Drive, the proposed plans show 7 feet of landscaping on the west side of the vehicle access lane and 2 feet, 9 inches on the east side. The requested waiver is reasonable in that the project includes two landscaped areas of approximately 168 and 230 square feet flanking the five uncovered parking spaces and allows the project to maximize on-site parking, which would be important for future residents and visitors given that on-street parking would not be available due to existing bike lanes on both streets.
10. Pedestrian Access: A minimum of 5-foot-wide pedestrian walkway is required on at least one side for the first 50 feet of vehicle access lanes. The Stewart Drive driveway entrance is the primary entrance into the development which is accompanied by a 6-foot wide pedestrian walkway providing access to the five parking spaces. The De Guigne Drive driveway is a secondary entrance/exit which is not accompanied by a pedestrian walkway as it does not lead to any parking spaces or unit entries. Instead, the project provides a 4-foot wide pedestrian access on the north side of the property. Based on these reasons, the requested waiver is reasonable.
11. Loading Zone: At least one parking space of 350 square feet and a minimum of 35 feet in one direction dedicated to loading/unloading is required per building. The project provides 5 standard-size visitor parking spaces but does not provide any dedicated loading spaces. The requested waiver is reasonable in that this site plan allows the project to maximize the number of dwelling units to meet the 28-unit base density while providing the 5 visitor parking spaces.
12. Utilities and Mechanical Equipment: The project provides ground-mounted utilities and mechanical equipment within the required front setback area where it is prohibited. However, the project will comply with the Location Exception Requirements by grouping the equipment together, installing screening features, and orienting the equipment perpendicular to the sidewalk.
13. Transformers: The project provides an above-ground transformer when it is required to be undergrounded or completely screened from the right-of-way. While the project will not place the transformer behind buildings, it will include screening on three sides of the equipment except one side accessible from the driveway, which is required to service the equipment, thereby substantially complying with the city’s Objective Design Standards for Undergrounding Exception Requirements.
14. Exterior Common Open Space: The project provides a score of 80 points where 120 points is required under the city’s Objective Design Standards Table 6A for pedestrian pathway requirements linking public right-of-way to common open space areas. The requested waiver is reasonable in that the common open space areas still have pedestrian access to the public right-of-way, while maximizing the number of residential units on site to meet the base density and providing on-site visitor parking.
15. Surface Parking Landscaping: The project provides a 6-inch wide curb between the pedestrian walkway and five visitor parking spaces where a 10-foot wide buffer is required. The requested waiver is reasonable in that there is still landscaping provided on site, while allowing the project to increase the number of residential units and provide on-site visitor parking.
16. Shading Requirements: Parking lots and drive aisles are required to be shaded by trees (or solar structures) primarily to combat the urban heat island effect, improve air quality, and create more pleasant environments by lowering pavement and car interior temperatures. While the project provides approximately 4.9% shading in the parking lot and drive aisles, where 50% minimum is required; the requested waiver is reasonable given that all 28 garage spaces are 100% shaded by the buildings and the proposed trees near the 5-space parking lot would shade 26% of the parking spaces. Staff supports the waiver given the project design meets the intent behind the shading requirement.
Overall, staff supports the requested concession and waivers.
Floor Area Ratio
The base R-3 zoning district does not have a maximum floor area ratio (FAR). The proposed FAR is 111%, which is allowed. Staff finds that the proposed FAR is in line with that for similar townhome projects and provides reasonable living area for future residents.
Parking
The project provides a total of 61 parking spaces. Of these, 56 spaces are within garages and provide two spaces per unit through a combination of side-by-side or tandem configurations, consistent with the State Density Bonus Law. The project also provides five visitor parking spaces. The project proposes to maintain the existing bike lanes on Stewart Drive and De Guigne Drive consistent with the City’s adopted 2006 Bicycle Master Plan. As such, no on-street parking would be available near the project site.
Transportation Demand Management (TDM)
The project is subject to the City’s multifamily residential TDM requirements, with a minimum of three points required from the adopted TDM strategies list. The project meets the three required TDM points through its proximity to commercial uses at Arques Square and various restaurants, located less than 0.25 miles away.
Usable Open Space
The SMC requires a minimum of 400 square feet of usable open space for each residential unit, or 11,200 square feet total. The project provides 13,356 square feet of usable open space including patios and decks, which exceeds the municipal code requirement.
Landscaping and Tree Preservation
A Preliminary Arborist Report was prepared for the proposed project, which identified 21 trees on site. Due to conflicts with the proposed building locations, circulation areas, and public improvements to various areas of the site, the project proposes to remove 19 existing trees, eight of which qualify as Protected Trees under the Sunnyvale Municipal Code, defined as trees with a trunk circumference of 38 inches or greater that require a permit for removal. The proposed project has been designed to accommodate 34 new trees throughout the site.
The SMC requires a minimum of 425 square feet of landscaping for each residential unit, or 11,900 square feet total. The project provides 13,475 square feet of landscape area, which exceeds the municipal code requirement.
Green Building and Reach Code Requirements
In accordance with Green Building Program requirements, the project would be required to achieve a minimum of 90 points on the GreenPoint Rated checklist, which will be confirmed at the building permit stage.
In May 2024, the City suspended enforcement of the all-electric provisions in the Reach Code, which means that projects approved during the suspension would not be required to build all-electric. The applicant is encouraged to voluntarily comply with the City’s Reach Codes through all-electric construction with no natural gas connection.
Solid Waste and Recycling Access
The project includes single-family recycling and garbage service for each unit, with individual carts to be staged on-site during trash collection in front of the individual garage doors and along the private east-west road. The applicant has coordinated with Environmental Services and Public Works Department staff to determine that the internal circulation satisfies the requirements for solid waste and recycling collection vehicles serving all units.
Vesting Tentative Map
The Vesting Tentative Map includes creation of 28 townhouse-style condominiums for ownership. A Homeowners Association (HOA) will ensure ongoing maintenance of common areas such as surface parking, landscaping, private walkways, common usable areas, and private/public utilities.
Easements
The development includes several street and utility easements. Private easements are provided to enable ingress/egress, emergency vehicle access, and private utility easement. The primary access easement is T-shaped, consisting of a 27-foot wide east-west segment across the site, which expands to a maximum of 45 feet in the north-south segment where visitor parking spaces are provided. A private easement and maintenance agreement will be created per the Conditions of Approval in Attachment 3, for common use and perpetual maintenance of certain improvements within these easements.
Hazardous Materials
The project site is located in a historically industrial area and surrounded by several federal Superfund sites, which are properties containing hazardous waste materials and subject to cleanup overseen by the federal government. Immediately west of the site, 825 Stewart Drive contains contaminated groundwater and soil with volatile organic compounds (VOCs) and has been under the U.S. Environmental Protection Agency oversight since cleanup began in 1973; a passive subslab ventilation system was installed in 2014 to address vapor intrusion issues and the building is acceptable for occupancy. Another Superfund site at 901 Thompson Place, approximately 740 feet south of the project site, also contains VOC-contaminated groundwater, with remediation initiated in 1983 and all selected cleanup remedies completed. In addition, a neighboring Superfund site at the northeast corner of De Guigne Drive and Stewart Drive is currently undergoing remediation and anticipates residential redevelopment. The Phase I Environmental Site Assessment findings for the project site indicate that future residential use would be appropriately protected through installation of vapor barriers and passive venting, and the project would include implementation of a Vapor Intrusion Mitigation System (VIMS) to ensure that future residences would not be affected by potential vapor intrusion from onsite affected soils. Please see Attachments 10 and 11 for more details.
Construction
The project would be required through a standard Condition of Approval (COA No. BP-28) to implement a Construction Management Plan (CMP) to minimize construction-related impacts on surrounding neighbors. The CMP would include, but not be limited to, compliance with the City’s construction hours, advance notification to neighbors regarding construction schedules, use of sound-reducing equipment, and routing construction traffic to and from the project site via designated truck routes, whenever feasible.
Fiscal Impact
No fiscal impacts to the General Fund. The project would be subject to the standard demolition and construction related permit fees and taxes, the same as for any other development project. The project would also be subject to additional fees including the adopted Park In-Lieu Fee, Traffic Impact, East Sunnyvale Sense of Place Fee, and School Impact fees as noted in the Conditions of Approval.
Public Contact
Neighborhood Outreach Meeting
The applicant hosted a neighborhood outreach meeting on October 14, 2025, with two members of the public present. The attendees asked questions about construction dust and noise. Staff also received a comment letter from another neighbor expressing concerns about hazardous materials found in the soil due to surrounding industrial and former agricultural uses.
Planning Commission Study Session
The Planning Commission reviewed the project plans at a study session on October 27, 2025. The Planning Commission was generally supportive of the project and indicated interest in enhancing the De Guigne Drive frontage to appear more residential and inviting in character and to reduce the visual impacts of the transformer.
Public Noticing
Public contact was made by posting the Planning Commission meeting agenda on the City's official-notice bulletin board at City Hall. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
778 notices were sent to surrounding property owners and residents within 1,000 feet of the subject site in addition to standard noticing practices, including advertisement in the Sunnyvale Sun Newspaper, a courtesy email to interested parties that were identified since the application was submitted, and on-site posting. No letters or calls were received from the public by staff.
ALTERNATIVES
1. Find the project exempt under CEQA and approve the Special Development Permit and Vesting Tentative Map with the findings in Attachment 2 and subject to the conditions of approval in Attachment 3.
2. Find the project exempt under CEQA and approve the Special Development Permit and Vesting Tentative Map with the findings in Attachment 2 and subject to the conditions of approval in Attachment 3 with modified conditions (Planning Commission to provide).
3. Do not make the required findings and direct staff where changes should be made.
4. Deny the project.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Find the project exempt under CEQA and approve the Special Development Permit and Vesting Tentative Map with the findings in Attachment 2 and subject to the conditions of approval in Attachment 3. The project provides homeownership opportunities on underutilized land within the City. The project is consistent with the M-S/ITR/R-3/PD zoning district by providing 28 residential units. The proposed project is consistent with the neighborhood character. Staff finds that the overall project meets the objectives of the General Plan, Zoning District, and relevant objective design guidelines.
JUSTIFICATION FOR RECOMMENDATION
The proposed project furthers the goals and objectives of the General Plan by providing mid-density residential housing, including four moderate-income ownership units. The proposed project includes land uses/intensities and a project design that contributes towards an improved quality of life and increased housing supply. The project also complies with many Citywide Objective Design Standards, contributes to a sense of place, and provides enhanced pedestrian and cyclist opportunities. The applicant’s justifications for the requested concession and waivers are reasonable as they still result in a well-designed project. No new significant environmental impacts would occur with implementation of the project.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
_X_ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Wendy Lao, Associate Planner
Reviewed by: Julia Klein, Principal Planner
Approved by: Shaunn Mendrin, Planning Officer
ATTACHMENTS
1. Noticing and Vicinity Map
2. Recommended Findings
3. Recommended Conditions of Approval
4. Project Data Table
5. Site and Architectural Plans
6. State Density Bonus Law Request Letter from Applicant
7. Class 32 CEQA Checklist
8. Air Quality Study dated October 15, 2025
9. Noise Study dated October 15, 2025
10. Phase I Environmental Site Assessment
11. Phase II Environmental Site Assessment
12. Peer Review of Technical Reports
13. Arborist Report
14. Public Comments Received