REPORT TO THE ZONING ADMINISTRATOR
SUBJECT
Title
Proposed Project:
USE PERMIT to allow a catering company with ancillary restaurant use and general liqueur service (Handheld Catering) to operate in the Industrial and Service (M-S) zoning district.
Location: 1220 Oakmead Parkway (APN: 216-44-048)
File #: PLNG-2025-0058
Zoning: M-S (Industrial and Service)
Applicant / Owner: Allie Kallish, Christopher Hall (applicants) / BPR Properties UCSC, LLC (owner)
Environmental Review: Class 1 Categorical Exemption relieves this project from the California Environmental Quality Act (CEQA) provisions.
Project Planner: Gabriela Ventura, (408) 730-7407, gventura@sunnyvale.ca.gov.
Report
BACKGROUND
The project site consists of one parcel that is currently developed with a 5,536 square-foot commercial building (formerly Round Table Pizza), surface parking, and mature landscaping along the street frontages and throughout the site. The project area is 0.93 acres in size, located at the northeast corner of Oakmead Parkway and Lakeside Drive. There is an apartment complex to the north directly across Oakmead Parkway, and office buildings to the east, west, and south of the project site. The project site is zoned M-S (Industrial and Service) and located in the Industrial General Plan land use designation.
Description of Proposed Project
The proposed project includes a request to allow a catering service that includes a restaurant space offering alcohol service. As described in the Project Description Letter (Attachment 5), the catering business is relocating to the tenant space to expand their business in Sunnyvale. No significant exterior changes to the existing building are proposed, aside from the addition of a loading door on the southern elevation. The restaurant space will also host typical restaurant-related events. A use permit is also required in the M-S zoning district due to the ancillary alcohol service to the general public according to Sunnyvale Municipal Code (SMC) Table 19.22.030.
See Attachment 1 for a map of the vicinity and mailing area for notices and Attachment 7 for Project Data.
Previous Actions on the Site
In 1993, a restaurant (Carl's Jr.) was approved for the subject site. The restaurant continued to operate in the building until 2013, when the business vacated the premises. Shortly thereafter, a new restaurant (Round Table Pizza) occupied the building and operated until 2021. In January 2023, a Use Permit was reviewed and approved by the Zoning Administrator to construct a new six-story hotel with 152 rooms. The approval for this project expired on January 8, 2025. There are no other previous planning projects related to the proposed use and no open Neighborhood Preservation complaints.
ENVIRONMENTAL REVIEW
A Class 1 Categorical Exemption (15301) relieves this project from the California Environmental Quality Act (CEQA) provisions. The Class 1 exemption applies to the operation, maintenance, or minor alterations of an existing building, involving negligible or no expansion of existing or former use. The project proposes a change of use which would not require or result in major physical alterations.
DISCUSSION
Proposed Use
The proposed use involves a catering service with an on-site restaurant space that will serve alcohol. Handheld Catering's primary business will be preparing food on-site and catering to clients at their preferred off-site locations. The business also offers event setup services and proposes a 1,334-square-foot storage area for equipment such as tables, chairs, plates, and other catering-related items. Please refer to Attachment 4, specifically the floor plan on PA2.2, for a more detailed breakdown. As part of the proposed use, the business will offer food tastings and anticipates 2 to 4 visitors on site at any given time. The proposal includes an office area for on-site employees, and the business anticipates employing up to 20 staff members.
The catering business will operate seven days a week, typically between 6:00 AM and 7:00 PM. As part of the overall operation, the business proposes to operate a 655-square-foot restaurant area that will host private client gatherings and tastings. This space will include a bar offering cocktails and small bites and will support the catering operations by showcasing menu offerings and providing a venue for intimate gatherings. The restaurant will not be open to the general public and is expected to host approximately 3 to 5 private events per week, serving 20-30 guests. Restaurant hours are expected to be operational on an as needed basis, but may operate seven days a week between 9:00 AM and 12:00 AM.
Although "catering" is not explicitly listed as a permitted use, staff has determined that the proposed catering operation is similar in nature and intensity to previously approved uses on the site. Per SMC Section 19.98.220, when a use is not specifically listed, it may be permitted if staff finds it to be similar to and no more objectionable or intensive than listed uses. Based on the submitted Project Description Letter (Attachment 5), staff finds the use consistent with that standard.
Development Standards
The project does not propose any changes to the building footprint. As such, the project maintains existing building setbacks, building square footage and floor area ratio, lot coverage, and height. Minor improvements to the building include a proposed rear service entry at the rear of the building. The proposed project complies with all applicable development standards, as set forth in the Sunnyvale Municipal Code.
Site Access, Circulation, and Parking
The existing parking lot can be accessed via two two-way driveways from Lakeside Drive and Oakmead Parkway. It contains a total of 47 parking spaces, including 2 accessible spaces. The proposal includes restriping the lot and removing three standard parking spaces, resulting in a total of 44 parking spaces. The proposed 655-square-foot restaurant with alcohol service would require a minimum of 9 spaces, and the 4,881-square-foot office area would require a minimum of 10 spaces. The proposed 44 parking spaces would exceed the minimum parking requirement.
One parking stall on the southwestern corner of the lot will be removed to accommodate a new trash enclosure. Two additional parking spaces directly across the proposed loading space will be removed to ensure that the loading space does not impede traffic flow or maneuvering within the lot. The proposal also includes the addition of three designated carpool parking spaces.
The project requires a total of 3 bicycle parking spaces: 2 Class I (secured) spaces and 1 Class II (rack) spaces. The proposal includes five short-term (Class II) bicycle parking spaces located near the building entrance, exceeding the minimum requirement. No long-term (Class I) secured bicycle parking is proposed. Although the project does not include Class I parking, an adjustment may be granted under SMC.19.46.130(f) if the following findings are met:
1. The proposed project is a change of use within an existing building.
The project involves a change of use within an existing building, converting a portion of office space to a 655-square-foot restaurant with alcohol service. This qualifies as a change of use without expansion of the building footprint.
2. An unusual configuration of the site, buildings, or parking precludes the installation of a particular type of bicycle parking.
The site is fully developed with limited available space adjacent to the building for secure, enclosed bicycle parking. Installing Class I (secured) bicycle parking would require the removal of additional vehicle parking or modifications to existing circulation areas, which would negatively impact site functionality and access.
3. The proposed type of bicycle parking meets the needs of the use.
The proposed five Class II bicycle parking spaces are located near the building entrance, offering visibility and convenience for both office employees and restaurant patrons. Given the small size of the restaurant and office components, demand for long-term bicycle parking is expected to be minimal. The proposed bicycle parking exceeds the minimum required by code and adequately supports the anticipated use.
NEIGHBORHOOD IMPACTS/COMPATIBILITY:
he proposed catering business, with a restaurant use available by appointment only, meets the General Plan policies that encourage a mix of uses that serve neighboring properties. The project complies with all development standards. In addition, the application represents a positive repurposing of a sizable commercial area that has remained unoccupied since 2021. For these reasons, staff finds that the proposed use is compatible with the neighborhood and would not significantly impact neighboring uses.
See Attachment 5 for the Project Description Letter and Attachment 2 for the required Use Permit findings.
PUBLIC CONTACT
172 notices were sent to surrounding property owners and residents adjacent to the subject site. In addition, the notice of the Public Hearing was published in the Sun newspaper.
Public contact was made by posting the agenda on the City's official-notice bulletin board at City Hall at 456 W. Olive Avenue and on the City's website.
Staff has received no comments on the item as of the time of staff report production.
ALTERNATIVES
1. Approve the Use Permit with recommended Findings in Attachment 2 and recommended Conditions in Attachment 3.
2. Approve the Use Permit with modifications.
3. Deny the Use Permit.
RECOMMENDATION
Recommendation
Alternative 1. Approve the Use Permit with recommended Findings in Attachment 2 and Conditions in Attachment 3.
Staff
Prepared by: Gabriela Ventura, Assistant Planner
Approved by: Momoko Ishijima, Senior Planner
ATTACHMENTS
1. Vicinity and Noticing Map
2. Recommended Findings
3. Recommended Conditions of Approval
4. Site and Architectural Plans
5. Project Description Letter
6. Use Permit Justification Form
7. Project Data Table