REPORT TO PLANNING COMMISSION
SUBJECT
Title
File #: 2016-7882
Location: 1120 Kifer Rd. (APN: 205-50-004)
Zoning: MXD-I (Flexible Mixed Use I)
Proposed Project: Related applications on a 7.99-acre site:
USE PERMIT: to redevelop an existing industrial site with mixed-use, including 7,400 square feet of retail and 520 apartment units.
PARCEL MAP: to subdivide one parcel into two parcels.
Applicant / Owner: Greystar (applicant) / 1130 Kifer Property Owner LLC (owner)
Environmental Review: No additional review required as per CEQA Guidelines 15168(c)(2) and (4) - environmental impacts of the project are addressed in the Lawrence Station Area Plan Program Environmental Impact Report (EIR).
Project Planner: Noren Caliva-Lepe, (408) 730-7659, ncaliva-lepe@sunnyvale.ca.gov
Report
REPORT IN BRIEF
General Plan: Lawrence Station Area Plan (LSAP)
Zoning: MXD-I (Flexible Mixed Use I)
Existing Site Conditions: Office/R&D
Surrounding Land Uses
North: Office/R&D (in the City of Santa Clara)
South: Office/R&D
East: Office/R&D
West: Office/R&D (proposed Intuitive Surgical industrial site, see 2016-7212)
Issues: Aesthetics and consistency with LSAP
Staff Recommendation: Alternative 1 - Make the required Findings to approve the CEQA determination that the environmental impacts of the project are addressed in the Lawrence Station Area Plan Program (LSAP) Environmental Impact Report (EIR) and no additional environmental review is required; and approve the Use Permit subject to LSAP the LSAP Mitigation Monitoring and Reporting Program in Attachment 6 and recommended conditions of approval in Attachment 4.
BACKGROUND
The existing industrial property is approximately 7.99 acres in size and contains one single-story building, which is partially occupied by the Art Institute of Sunnyvale. Surrounding uses primarily consist of office/R&D uses. The Lawrence Caltrain Station is located less than a quarter of a mile to the south.
The site is within the LSAP, which was adopted by the City Council on December 6, 2016. The LSAP designates the site as Mixed Use Transit Supporting North and is zoned MXD-I - Flexible Mixed Use I, which allows such as mixed use (residential and office/research and development uses on a single site), high-density residential (up to 68 dwelling units per acre), and office/R&D uses (up to 150% floor area ratio, or FAR).
Proposed Project
The applicant proposes to demolish the existing industrial building and construct a mixed-use project that includes approximately 7,400 square feet of ground-floor retail and 520 apartment units, within two five-story buildings. The project provides a publically-accessible road and park in the middle of the site. A Parcel Map is also proposed to subdivide the existing parcel into two parcels.
See Attachment 1 for a map of the vicinity and mailing area for notices and Attachment 2 for the Data Table of the project.
EXISTING POLICY
General Plan and LSAP Goals and Policies
Attachment 3 contains relevant General Plan goals and policies, and makes reference to the recently-adopted LSAP. The LSAP was created to promote and guide redevelopment of the area near the Lawrence Caltrain station. The major elements of the LSAP include the following:
* Provide diverse types of land use;
* Provide density closest to the station;
* Improve access to and around the entire area, and to areas beyond the LSAP area;
* Develop a plan to allow developments and public improvements to create a character and identity unique to the area and consistent with that found in Sunnyvale;
* Provide flexibility in future redevelopment to allow a plan responsive to the change land use pressures and market changes; and
* Ensure any changes made use sustainable and environmentally sensitive elements.
Applicable Design Guidelines
In addition to the guidelines contained in the LSAP, the Citywide Design Guidelines were used to evaluate the project.
ENVIRONMENTAL REVIEW
A Program-level Environmental Impact Report (EIR) was prepared for the LSAP (State Clearinghouse No. 2013082030) per the California Environmental Quality Act (CEQA), which identified broad environmental impacts resulting from the proposed development intensities in the overall Plan. Greystar's currently proposed land use intensity was included in the traffic analysis of the LSAP, as part of the EIR. Certification of the LSAP EIR included a mitigation monitoring program (MMRP) with provisions to reduce the potentially significant impacts to a less than significant level, although some impacts of the LSAP will remain as significant and unavoidable after mitigation (see LSAP MMRP in Attachment 6). A Statement of Overriding Considerations were adopted in conjunction with the LSAP in acknowledgment of the presence of the remaining significant and unavoidable impacts.
An Environmental Checklist was prepared to determine whether the environmental impacts of the proposed project are within the scope of the LSAP EIR, or if changed environmental conditions result in new or substantially more severe environmental impacts, as compared to those considered in the LSAP EIR. The Checklist also considered whether there is new information of substantial importance showing that new or substantially more severe environmental impacts would occur compared to that evaluated in the LSAP EIR (see Project Environmental Checklist in Attachment 5).
Several technical studies were prepared to analyze site and project-specific environmental conditions, such as noise study, Phase I and II, geotechnical investigation, biological study, air quality and greenhouse gas study and arborist report.
Review of the project, including technical studies, confirmed the project is consistent with the certified LSAP EIR analysis and did not reveal new impacts that warranted further investigation. Therefore, staff finds that the environmental impacts of the project are addressed in the LSAP EIR and no additional review is required as per CEQA Guidelines 15168(c)(2) and (4).
DISCUSSION
Present Site Conditions
The site is currently developed with a 100,843 square foot single-story building that has been used as office/R&D and by the Art Institute of Sunnyvale, a vocational school for adults that currently occupies half of the building. The site contains surface parking and landscaping, with large trees along the street frontage. Direct vehicular access is provided along Kifer Road.
Use Permit
The MXD I zoning allows for a flexible mix of uses, including either residential or office uses, or both. The proposed project would introduce a mix of uses, including high density residential and retail, which are consistent with the uses envisioned in the LSAP. These uses could help to increase transit ridership for the nearby Caltrain station, while also introducing housing into an employment area. While individual tenants have not yet been identified for the ground-floor retail areas, future uses would be subject to individual permitting prescribed in the MXD 1 use table.
Residential Density and LSAP Incentive Program
The LSAP requires applicants to provide community benefits in the plan area through incentive-based zoning. The adopted Incentive Program provides a list of incentives for applicants to choose from to maximize the build-out of their properties. The MXD I zoning designation requires a minimum residential density of 36 units per area and a maximum of 45 units per acre, or a minimum of 287 units and maximum of 359 units for the project site. With incentives, the density may be increased to 68 units per acre, or 543 units for the project site. The applicant proposes 520 units (65 units per acre) with a full list of community benefits and incentive points in Attachment 8.
A key element of the LSAP vision is to improve access for all modes of travel to and from the Caltrain station. The proposed project helps to implement this vision by providing a publically-accessible road through the center of the site, referred to as the loop road. The loop road will provide a multi-modal connection from Kifer Road and eventually through Sonora Court. The adjacent properties to the south would be required to complete the loop road access through Sonora Court in their future plans and entitlements. In the interim, the loop road will dead-end at Greystar's southern property line, until the future connection is secured.
The loop road is designed to allow for vehicular, bicycle, pedestrian and future bus access. Parallel parking spaces are also proposed along the loop road, which may be used by the public. Several crosswalks are included to allow for safe pedestrian movements across the site. Trees and lighting will be installed along the road. Ground-floor retail and private residential amenity areas, such as lobbies, leasing offices, gyms, and business centers are concentrated along the loop road, which will help to create an active street setting.
An additional community benefit includes a 15,000 square-foot publically-accessible park in the middle of the site. The park is also sited along the loop road, which will help to further activate the street setting. A conceptual plan of the park shows seating areas, a bocce court and a multi-purpose lawn area.
Architectural Design
The proposed architecture can be considered contemporary or modern, with varying elements and forms used between the buildings but with unifying materials, colors and architectural style. The main building forms generally consist of plaster in white, grey and brown hues. The buildings are designed with "360 degree architecture", meaning all elevations maintain the same level of design and detailing.
The building on the west side of the loop road can be generalized as having more warm accent materials and colors, including porcelain tile with a wood-like texture that is applied to portions of the ground floor and recessed wall planes. Grey metal panels are applied to some projecting wall planes, as well to recessed balcony walls. Metal railings are applied to balconies, which are primarily enclosed into the building form with minimal balcony projections. Windows help to break up the massing of the building, with varying shapes and grid patterns. Ground floor balcony areas and building entries and stoops are provided, which helps to create a more urban setting. The ground-floor retail space is located along the corner of Kifer Road and the loop road, which creates a vibrant entry into the development. High volume ceilings, pronounced wall forms, metal awnings and high floor-to-ceiling windows help to further highlight the retail elevations. Roof elements vary in height, and include cornices to strengthen the top of the building.
The building on the east side of loop road contains more modern features and cool tones, including a decorative metal panel system with varying applications of dark grey, light grey and light blue-colored metal. An accent orange color is also applied to several wall and window segments. The design also features vertical wall projections that extend to the top of the building, with porcelain tile in a wood-like texture applied to the exposed segments. Openings, such as entries, balconies, and windows, vary inform and contributes positively to the architectural design of the building. Similar to the other building, the retail elevation is located on the corner of Kifer Road and the loop road and features high windows, canopies, which create a strong entry into the site.
Staff finds that the proposed architectural design is consistent with the guidelines contained in the LSAP and Citywide Design Guidelines by utilizing high quality materials, interesting pedestrian-scale elements, varying wall planes and materials that break up visual mass, and ground-floor active spaces that help to promote street activity. In addition, the parking structure is fully concealed within the buildings, which minimizes the aesthetic impacts of parking.
Development Standards
The LSAP contains specific development standards that are evaluated below. The project complies with all development standards, as discussed below and included in the project data table in Attachment 2.
Site Layout
Two mixed use buildings are proposed, one on each side of the loop road. The front portion of the buildings facing Kifer Road contains retail and residential amenities and open space on the ground floor. Residential units are also located on all floors. The back portion of the buildings contains additional residential units wrapped around the parking structures on all floors. Additional residential amenities are located on the first floor.
The project meets all minimum setback requirements contained in the LSAP, including front setbacks along Kifer Road and the loop road. Side and rear setbacks exceed the minimum required to help minimize potential conflicts with the adjacent office/R&D uses that surround the site.
Building Height/Stories
The LSAP allows building heights up to eight stories and 85 feet. The proposed buildings will be five stories in height, with an overall height of approximately 65 feet. Therefore, the proposed project complies with height limits contained in the LSAP and the reduced heights help to better relate to the scale of the neighboring properties.
Circulation
The existing site contains three driveways along Kifer Road. The proposed project includes two driveways. The main driveway will serve the loop road in the middle of the site, and utilizes an existing traffic signal, which also aligns with Semiconductor Drive across Kifer Road within the City of Santa Clara. A secondary driveway is located along the eastern property line, which also serves as access for emergency vehicles and solid waste trucks. The project includes a shared driveway on the adjacent Intuitive Surgical property to the west. This shared driveway is an essential element of the LSAP and Greystar and Intuitive Surgical projects as follows:
* Allowing Greystar to use the shared driveway on the Intuitive Surgical property allows the proposed mixed-use Greystar building on the western portion of that property to be moved to the west which allows for the full width needed for multi-modal public access on the loop road.
* The loop road alignment was originally shown in the LSAP on the Intuitive Surgical property already developed with a relatively new office building. Given the unlikely redevelopment of that property, staff worked with Intuitive Surgical and Greystar to develop an alternative alignment in order to provide the LSAP goal of improved access from Kifer Road to Sonora Court. The LSAP envisioned that future road locations could vary based on future development opportunities to provide roads and paths through the area.
* Providing a shared driveway for the two projects reduces the number of driveway openings along Kifer Road, which provides a safer bicycling and pedestrian experience and improves traffic flow.
Vehicular access into the wrapped parking structures is provided through drive aisles on the first floor in the middle of the buildings, which are tucked beneath the upper floors (see Sheet A2.1 in Attachment 7). This design helps to minimize the visual impacts of parking and impervious surface. Another key element of the LSAP is to break up massing of buildings to allow easy access through a site. The Greystar buildings are relatively long, but a clear path is provided through the building approximately halfway through the building. This path will be clearly marked and provides opportunities for neighboring employees or future residents to use future pedestrian and bicycle paths in the middle of the properties.
Parking
The LSAP contains parking requirements that are specific to that area and introduces a residential parking maximum, not found in other parking requirements in the City. Similar to other residential parking requirements, the number of spaces required is based on the number of bedrooms. Retail parking within a mixed use development also contains a lower parking rate that factors in the ability to share parking. Below is a summary of the parking requirements for the project:
Vehicle Parking Rate
Minimum
Maximum
Residential
326 units - 1 bedroom
1/unit min and 1.5/unit max
362
489
194 units - 2 bedrooms
1.25/unit min and 2/unit max
243
388
Retail
7,400 square feet
2/1,000sf min and 4/1,000sf max
15
30
Total Required
620
907
A minimum of 620 and maximum of 907 parking spaces are required for the project. A total of 766 parking spaces are proposed, which includes assigned residential spaces, open guest and retail spaces, and several spaces along the loop road that are open to the public. As required for mixed use projects, a parking management plan will be required to efficiently manage the shared use of parking throughout the development (see Condition of Approval PS-3 in Attachment 4).
Bicycle Parking and Amenities
Below is a summary of the bicycle parking requirement for the project, which requires a combination of Class I (within a secured room or locker) and Class II (racks):
Bicycle Parking Rate
Minimum Required
Residential
Class I - 1/unit
Class II - 1/15 units
Class I - 130
Class II - 35
Retail
Class I - 1/30 employees
Class II - 1/6,000sf
Class I - 1
Class II - 2
Total Required
Class I - 131
Class II - 37
Total - 168
The proposed project complies with bicycle requirements by provides a total of 169 bicycle parking spaces, consisting of 131 secured and 38 racks. To further promote bicycle use, a bicycle repair shop is provided for private use by residents within the development.
Landscaping and Tree Preservation
The LSAP requires a minimum of 20% of the site to be landscaped, or 69,614 square feet for the project site. A preliminary landscaping plan was provided and demonstrates that the project exceeds the minimum requirement by providing more than 33% or 116,000 square feet of landscaped areas. Landscaping is comprised of groundcover, limited turf, shrubs and trees.
An arborist report was prepared and evaluated a total of 110 trees, 61 of which are considered to be "protected" per Sunnyvale Municipal Code 19.94 with trunks that are at least 38 inches in circumference. The arborist found that nearly 39% of the trees evaluated were in poor condition due to improper pruning, general neglect and insufficient irrigation. Other protected trees are proposed for removal due to declining health and conflicts with proposed buildings and infrastructure (see arborist report in Attachment 9).
The most visible trees directly in front of the property include a row of 18 redwoods planted along the Kifer Road frontage and represent the largest trees found on-site. City staff walked the street frontages with the applicant's team to assess these trees. Two of the redwood trees (trees #85 and 92) are in poor condition with dead or dying tops and shoots, and are recommended for removal. The remaining 16 redwoods are in fair condition, eight of which have been identified for preservation (trees #84, 87, 89, 91, 93, 94, 95 and 97).
As recommended by the City Arborist, the applicant will explore options to preserve the additional eight redwoods (trees #81, 82, 83, 85, 86, 88, 90, 96), which will require exploratory excavation prior to site demolition and sidewalk installation.
A final landscaping and tree preservation plan will be required prior to building permit submittal, demonstrating compliance with landscaping requirements, water-efficiency provision, tree preservation recommendations, and tree replacement standards (see Attachment 4).
Usable Open Space
A minimum of 50 square feet of usable open space is required for each residential unit, where 194 square feet per unit is provided in the project. Usable open space will primarily be provided within interior courtyards and roof decks. A portion of the emergency vehicle access road along the rear and right side property lines also counts as usable open space, as it provides a stabilizes meandering walkway and groundcover for residents to use. The dual use of the emergency vehicle access road has been conceptually approved by the Department of Public Safety (Fire Prevention) and the final design will be subject to their review of the building permit plans. The publically-accessible park and private balconies provides additional outdoor recreation area for residents.
A noise study was prepared for the project to evaluate the outdoor noise environment in the usable open space areas for compliance with the General Plan noise policy, with states that projects should attempt to achieve noise levels not to exceed 70 dBA. A noise level up to 75 dBA is considered to be conditionally acceptable. The study found noise associated with the rail and roadways are shielded by the buildings and that the outdoor noise levels are less than 60 dBA. Therefore, the project is consistent with the General Plan noise policy.
Lockable Storage
Per Sunnyvale Municipal Code 19.38.040, a minimum of 300 cubic feet of lockable storage is required per residential unit. The proposed project provides the minimum 300 cubic feet per unit within the parking structures.
RESIDENTIAL TRANSPORTATION DEMAND MANAGEMENT (TDM)
The project is subject to the recently-adopted residential TDM requirements, with a minimum of 10 points required from the adopted TDM Strategies list. The project location (less than a half-mile from the Caltrain station and less than a quarter-mile from at least three existing retail tenants) totals 11 points, which satisfies the TDM requirements. As proposed as part of the project, multi-modal wayfinding information and a bicycle repair facility are provided, which provides an addition one point towards TDM, for a total of 12 TDM points for the project (see Condition of Approval BP-31 in Attachment 4).
GREEN BUILDING
A minimum of 80 points on the GreenPoint Rated checklist is required for new multi-family developments. A minimum of LEED Silver is required for the retail tenant spaces. The project exceeds green building requirements by targeting 114 points for residential and LEED Gold for the retail tenant spaces (see checklists in Attachment 10).
AFFORDABLE HOUSING
The project is subject to housing impact fees for rental housing contained in SMC 19.75.040. Based on the proposed habitable square footage, the applicable rental impact fee would be $7,982,730 (based on the current fee schedule). Alternatively, the applicant may provide affordable rental units within the project to offset some or all of the fees otherwise due, as allowed under SMC 19.75 and the fee resolution. The applicant has proposed to satisfy the requirement by providing 40 low income rental and paying the remaining rental impact fee of $1,982,730 (see Condition of Approval BP-9.d in Attachment 4). "Low income units" as defined in the SMC are those that are affordable to households with incomes at or below 80% of area median income (AMI), with rents based on an income of 70% of AMI.
FISCAL IMPACT
Normal fees and taxes are expected. Standard fees, such as traffic impact, park in-lieu, and school impact fees are required prior to issuance of a building permit and are included in Attachment 4.
PUBLIC CONTACT
As of the date of staff report preparation, staff has received no comments from the neighbors, tenants or property owners or the general public. Staff conducted standard noticing and posting below:
*?Published in the Sun newspaper
*?Posted on the site
*?Posted on the City's website
*?Provided at the Reference Section of the City's Public Library
*?Posted on the City's official notice bulletin board
*?Posted on the City's website
* A total of 382 notices mailed to Sunnyvale and Santa Clara property owners and residents within 1,000 feet of the project site
* Notices were also sent to the project interested parties list, Ponderosa Neighborhood Association, and City of Santa Clara.
Planning Commission Study Session - August 22, 2016
The Planning Commission Study Session was held on August 22, 2016 to review conceptual plans. Staff provided information about the LSAP and the applicant presented the proposed project with architectural renderings. The Commissioners complimented the coordination between Intuitive Surgical and Greystar on fulfilling the goals and visions of the LSAP. Key issues discussed included architecture, sidewalks and trees. The applicant has addressed these comments in their current plans.
Community Outreach Meeting - September 22, 2016
The applicant conducted a joint community outreach meeting with Intuitive Surgical on September 22, 2016. The meeting was attended by approximately ten neighboring property owners, residents and Councilmembers. The project was positively received by those present.
ALTERNATIVES
1. Make the required Findings to approve the CEQA determination that the environmental impacts of the project are addressed in the Lawrence Station Area Plan Program (LSAP) Environmental Impact Report (EIR) and no additional environmental review is required; and approve the Use Permit subject to LSAP the LSAP Mitigation Monitoring and Reporting Program in Attachment 6 and recommended conditions of approval in Attachment 4.
2. Make the required Findings to approve the CEQA determination that the environmental impacts of the project are addressed in the Lawrence Station Area Plan Program (LSAP) Environmental Impact Report (EIR) and no additional environmental review is required; approve the Use Permit subject to LSAP the LSAP Mitigation Monitoring and Reporting Program in Attachment 6 and modified conditions of approval as required by the Planning Commission.
3. Do not make the CEQA Findings and direct staff as to where additional environmental analysis is required.
4. Deny the Use Permit and provide direction to staff and applicant on where changes should be made.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Make the required Findings to approve the CEQA determination that the environmental impacts of the project are addressed in the Lawrence Station Area Plan Program (LSAP) Environmental Impact Report (EIR) and no additional environmental review is required; and approve the Use Permit subject to LSAP the LSAP Mitigation Monitoring and Reporting Program in Attachment 6 and recommended conditions of approval in Attachment 4.
Staff
Prepared by: Noren Caliva-Lepe, Senior Planner
Approved by: Andrew Miner, Planning Officer
ATTACHMENTS
1. Vicinity and Noticing Map
2. Project Data Table
3. Recommended Findings
4. Recommended Conditions of Approval
5. Project Environmental Checklist
6. LSAP Mitigation Monitoring and Reporting Program
7. Proposed Site and Architectural Plans
8. Community Benefits/Incentive Points
9. Arborist Report
10. Green Building Checklists