REPORT TO COUNCIL
SUBJECT
Title
Proposed Project:
Introduce an Ordinance to Amend Chapter 19.67 (Inclusionary Below Market Rate Ownership Housing Program) and Chapter 19.77 (Inclusionary Below Market Rate Rental Housing) of Title 19 (Zoning) of the Sunnyvale Municipal Code to Modify Requirements for Qualified Retail Preservation Projects, Adopt a Resolution to Establish a Retail Preservation Incentive Program for Certain Village Center Sites and Find that the Proposed Actions are Consistent with the Environmental Impact Report (EIR) for the Land Use and Transportation Element (LUTE) and do not Require Additional Environmental Review Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15162.
Location: Citywide Village Center Sites
File #: PLNG-2025-0001
General Plan Land Use: VMU (Village Center Mixed Use)
Project Planner: Trudi Ryan, (408) 730-7435, tryan@sunnyvale.ca.gov
Report
SUMMARY OF COMMISSION ACTION
The Planning Commission considered this item on February 24, 2025. Attachment 11 is an excerpt of the Final Minutes of the Planning Commission meeting.
Commissioners asked questions about whether a BMR program discourages development, whether the proposed commercial incentive program would be subject to the other housing development requirements and standards, how waivers and concessions would be handled, the current market for townhouse development, how a development qualifies as affordable in the Housing Element, the locations of the recommended Village Center sites, the recommended distance to other commercial zoning, the distinction between waivers and concessions, and how zoning land use categories are generally broad (e.g. retail vs grocery store).
The Commission and staff discussed the Village Center Master Plan schedule and recommendations from the Planning Commission and direction that could be given by the Council on zoning and density and any future General Plan and zoning designations for Village Center sites. Staff also provided the status of the approved developments for Village Centers 1 and 2.
Nine members of the public spoke on this item. Many speakers noted the importance of both affordable housing and retail in Sunnyvale, and support for a program that could increase the amount of retail. Some speakers advocated for higher amounts of retail (e.g. FARs higher than 10% or a minimum of 30,000 square feet) and that priority should be for small local businesses. One person advocated for not allowing nightclubs within Village Centers.
Based on a suggestion that staff include examples to illustrate floor area ratio staff explained that a 10% FAR on a 4-acre site would be about 17,000 square feet and that 10% FAR on a 6-acre site would be about 26,000 square feet.
The Commissioners expressed support for a program that aims to incentivize retail developments at Village Centers 5 and 6.
The Planning Commission voted 6-0 (one Commissioner absent) to recommend Alternative 1 to the City Council.
PUBLIC CONTACT
Over 2,000 notices were mailed to property owners and current tenants within 300 feet of the Village Centers. Thirty-four developers, neighborhood associations and other interested parties were notified by email. Staff has received questions on the item from three people. In addition, a notice of the Public Hearings was published in the Sun newspaper.
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall 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.
ALTERNATIVES
1. Introduce an Ordinance to amend Chapter 19.67 (Inclusionary Below Market Rate Ownership Housing Program) and Chapter 19.77 (Inclusionary Below Market Rate Rental Housing) of Title 19 (Zoning) of the Sunnyvale Municipal Code relating to modified requirements for qualifying retail preservation projects in Attachment 2, Adopt a Resolution (Attachment 3), and find that the Actions are consistent with the certified Land Use and Transportation Element (LUTE) Environmental Impact Report (EIR) and no further environmental review is required under California Environmental Quality Act (CEQA) Guidelines 15162.
2. Alternative 1 with modifications.
3. Do not introduce an ordinance or adopt the resolution and provide direction to staff.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Introduce an Ordinance to amend Chapter 19.67 (Inclusionary Below Market Rate Ownership Housing Program) and Chapter 19.77 (Inclusionary Below Market Rate Rental Housing) of Title 19 (Zoning) of the Sunnyvale Municipal Code relating to modified requirements for qualifying retail preservation projects in Attachment 2 to the report, Adopt a Resolution (Attachment 3 to the report), and find that the Actions are consistent with the certified Land Use and Transportation Element (LUTE) Environmental Impact Report (EIR) and no further environmental review is required under California Environmental Quality Act (CEQA) Guidelines 15162.
JUSTIFICATION FOR RECOMMENDATION
The inclusion of deed restricted affordable housing is an important component of the City’s programs for assuring availability of housing with a range of affordability. However, the availability of conveniently located shopping is also important for the convenience of residents and to reduce vehicle miles traveled. The City’s General Plan includes a number of economic development and environmental justice objectives and policies that promote a variety of commercial environments and job opportunities while also ensuring that residents have access to fresh, healthy food in various retail environments, especially in low resource areas. On balance staff finds that this program would benefit neighborhoods by incentivizing the provision of retail space on Village Center sites and result in a limited loss of affordable units due to limited eligibility requirements of the ordinance.
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
*Legislation with narrow scope affecting small number of specific sites
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: Trudi Ryan, Director of Community Development
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Report to Planning Commission [25-0191, February 24, 2025] (without attachments)
2. Draft Ordinance
3. Draft Resolution
4. References to Village Mixed Use and Village Centers in the LUTE
5. Map - General Plan Chapter 3 LUTE Mixed Use Areas
6. Map of all Village Centers (from Draft Village Center Master Plan)
7. Details and Maps of Village Center Sites
8. Maps with Zoning and Walking Distance to Commercial from Village Centers
9. Links to General Plan and Environmental Documents
10. Maps of Resource/Opportunity Areas
Additional Attachments for Report to Council
11. Excerpt of Final Minutes of the Planning Commission Meeting of February 24, 2025
12. Public Comment Letters