REPORT TO COUNCIL
SUBJECT
Title
Proposed Project: Related applications on a 15.6-acre site:
DEVELOPMENT AGREEMENT: Introduction of an Ordinance Approving and Adopting the First Amendment to the Development Agreement between the City of Sunnyvale and Intuitive Surgical Inc.
SPECIAL DEVELOPMENT PERMIT: Modify Special Development Permit (2019-7557) pertaining to 945 - 955 Kifer Road (North Site) of the Intuitive Surgical corporate campus to add an internal courtyard and reduce total building area by 6,000 square feet (from 364,000 to 358,000 square feet), relocate the previously-approved underground parking to a new above-ground structure on an adjacent site at 2900 Semiconductor Drive, Santa Clara, CA (APN 205-39-028), modify the design of the pedestrian bridge connecting the north and south sites, and other minor building and site modifications.
Location: 945 - 955 Kifer Road (APNs: 205-40-001, 205-40-002) and City of Santa Clara APN 205-39-028
File #: 2022-7369
Zoning: M-S/LSAP 60% (Lawrence Station Area Plan Industrial and Service Zoning District 60% Floor Area Ratio)
Applicant / Owner: Steve Riley (applicant) / Intuitive Surgical, Inc. (owner)
Environmental Review: An Environmental Checklist/Addendum to the Lawrence Station Area Plan Update/Intuitive Surgical Corporate Campus Project Final Subsequent Environmental Impact Report (EIR) has been prepared for the Intuitive North Site Modification Project in compliance with California Environmental Quality Act provisions.
Project Planner: Julia Klein, (408) 730-7463, jklein@sunnyvale.ca.gov
Report
SUMMARY OF COMMISSION ACTION
The Planning Commission considered this item on July 8, 2024. There were no public speakers. The Commission provided comments/questions on the following:
• Clarified that elements that were previously approved for the South Site are not under consideration with this project.
• Clarified the proposed design changes to the pedestrian bridge connecting the North and South sites; and that it would not be publicly accessible.
• Clarified that concerns raised by Hexagon Transportation Consultants, Inc. regarding the acceleration and deceleration lane lengths, adjacent to Central Expressway, have been addressed in the project design.
The Planning Commission voted to recommend Alternatives 1 & 2 to the City Council:
1. Make the Determination required by Resolution No. 371-81 for the First Amendment to the Development Agreement in Attachment 3.
2. Approve and Adopt the First Amendment to the Development Agreement and Special Development Permit:
a. Make the required findings to accept the Environmental Checklist/Addendum to the Lawrence Station Area Plan Update/Intuitive Surgical Corporate Campus Project Final Subsequent Environmental Impact Report for the Intuitive North Site Modification Project finding that it has been prepared in compliance with California Environmental Quality Act provisions and no additional environmental review is required; and
b. Approve the Modification to Special Development Permit (2019-7557) at 945-955 Kifer Road (north site) based on Recommended Findings in Attachment 4 and Recommended Conditions of Approval in Attachment 5; and
c. Introduction of an Ordinance Approving and Adopting the First Amendment to the Development Agreement between the City of Sunnyvale and Intuitive Surgical Inc. included in Attachment 2 and based on the Determination required by Resolution No. 371-81 in Attachment 3.
The vote was 6-0 to recommend Alternatives 1 & 2 to the City Council, with Commissioner Sigura absent.
Public Comment letters are provided in Attachment 15 to the report.
PUBLIC CONTACT
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 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.
ALTERNATIVES
1. Make the Determination required by Resolution No. 371-81 for the First Amendment to the Development Agreement (Attachment 3 to the Report).
2. Approve the Modification to the Special Development Permit and the First Amendment to the Development Agreement:
a) Make the required findings to accept the Environmental Checklist/Addendum to the Lawrence Station Area Plan Update/Intuitive Surgical Corporate Campus Project Final Subsequent Environmental Impact Report for the Intuitive North Site Modification Project finding that it has been prepared in compliance with California Environmental Quality Act provisions and no additional environmental review is required; and,
b) Approve the Modification to Special Development Permit (2019-7557) at 945-955 Kifer Road (north site) based on Recommended Findings in Attachment 4 and Recommended Conditions of Approval in Attachment 5; and,
c) Introduction of an Ordinance Approving and Adopting First Amendment to the Development Agreement between the City of Sunnyvale and Intuitive Surgical Inc. included in Attachment 2 and based on the Determination required by Resolution No. 371-81 in Attachment 3.
3. Alternative 2, with modifications.
4. Do not make the CEQA Findings and direct staff as to where additional environmental analysis is required.
5. Deny the Special Development Permit and provide direction to staff and applicant regarding desired modifications.
6. Do not Introduce the Ordinance for the First Amendment to the Development Agreement and provide direction to the staff and developer regarding desired modifications.
STAFF RECOMMENDATION
Recommendation
Alternatives 1 and 2: 1) Make the Determination required by Resolution No. 371-81 for the First Amendment to the Development Agreement (Attachment 3 to the Report); and 2) Approve and Adopt the First Amendment to the Development Agreement and Special Development Permit:
a) Make the required findings to accept the Environmental Checklist/Addendum to the Lawrence Station Area Plan Update/Intuitive Surgical Corporate Campus Project Final Subsequent Environmental Impact Report for the Intuitive North Site Modification Project finding that it has been prepared in compliance with California Environmental Quality Act provisions and no additional environmental review is required; and
b) Approve the Modification to Special Development Permit (2019-7557) at 945-955 Kifer Road (north site) based on Recommended Findings in Attachment 4 and Recommended Conditions of Approval in Attachment 5.
c) Introduction of an Ordinance Approving and Adopting the First Amendment to the Development Agreement between the City of Sunnyvale and Intuitive Surgical Inc. included in Attachment 2 and based on the Determination required by Resolution No. 371-81 in Attachment 3.
JUSTIFICATION FOR RECOMMENDATION
Staff supports the proposed modifications to the project as the changes maintain the high-quality architectural design and the site design continues to highlight the western entry point into the LSAP district. The modifications do not negatively affect the integrated campus design that allows a Sunnyvale-based company to continue to grow and provide employment opportunities within walking distance of existing and future residential uses in the LSAP. The relocation of the parking to an adjacent site has minimal effects on previously anticipated transportation related impacts. The First Amendment to the Development Agreement provides $2,000,000 for ongoing loss of property tax, one time construction tax, and one time use tax for the parking garage built outside of City’s jurisdictional limits.
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 $250 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
A check or “Y” 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
___ General policy and legislative actions
Staff
Prepared by: Julia Klein, Principal Planner
Reviewed by: Shaunn Mendrin, Planning Officer
Reviewed by: Trudi Ryan, Director of Community Development
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, Interim City Manager
ATTACHMENTS
1. Report to Planning Commission [24-0762, July 8, 2024] (without attachments)
2. Draft Ordinance and Development Agreement
3. Draft Determination of the Planning Commission on the Development Agreement
4. Recommended Special Development Findings
5. Recommended Conditions of Approval
6. Noticing and Vicinity Map
7. Project Data Table
8-12. Links to Project Plans (Volumes 1 through 5 of 5)
[note: plans split into 5 volumes due to file size limitations]
13 Addendum to LSAP FSEIR
14 Circulation Memo
15 Public Comments
16 Original Development Agreement
Additional Attachments for Report to Council
17 Excerpt of Final Minutes of the Planning Commission Meeting of July 8, 2024