REPORT TO PLANNING COMMISSION
SUBJECT
Title
Proposed Project: Related applications on a 1.45-acre site:
USE PERMIT: To demolish an existing commercial site and construct six 3-story residential buildings with a total of 28 townhome units.
VESTING TENTATIVE MAP: To subdivide the existing lot into 28 lots and one common parcel.
Location: 494 S. Bernardo Ave. (APN: 161-24-001)
File #: PLNG-2025-0384
Zoning: R-3 (Medium Density Residential)
Applicant / Owner: Forrest Mozart, California Communities, LLC (applicant) / 494 Bernardo L P (owner)
Environmental Review: Statutory exemption under Public Resources Code Section 21080.66 (AB 130)
Project Planner: Wendy Lao, (408) 730-7408, wlao@sunnyvale.ca.gov
Report
REPORT IN BRIEF
General Plan: Medium Density Residential
Existing Site Conditions: A vacant single-story childcare center and surface parking.
Surrounding Land Uses
North: Two-story multi-family residences
South: One-story single-family and duplex/two-unit residences across W. Olive Ave.
East: One- and two-story multi-family residences
West: Two-story multi-family residences across S. Bernardo Ave.
Staff Recommendation: Find the project is exempt from CEQA per AB 130; and approve the Use Permit and Vesting Tentative Map with the Recommended Findings in Attachment 2 and subject to the Recommended Conditions of Approval in Attachment 3.
BACKGROUND
Description of Proposed Project
The project is located on a 1.45-acre lot with a 13,170-square-foot, single-story childcare center, which is currently vacant. The proposed project consists of demolishing the existing building and constructing 28 townhomes in six 3-story buildings. Of the 28 units, 4 units will be deed-restricted as affordable to moderate-income households and the project is therefore eligible to utilize the State Density Bonus Law. The project is requesting one concession and 16 waivers of physical development standards, as discussed in the Development Standards section of this staff report.
A Use Permit (UP) is required because the proposed townhome development creates individual lots with areas and widths below the minimum standards established for the R-3 (Medium Density Residential) zoning district, per Sunnyvale Municipal Code (SMC) Section 19.30.020, Table note (7). A Tentative Map (TM) is required for the creation of 28 townhome lots and one common parcel per SMC Chapter 18.20. The findings to grant approval for the UP and TM are discussed in the Recommended Findings in Attachment 2. See Attachment 1 for a vicinity map and mailed notice area and Attachment 4 for the Project Data Table.
Previous Actions on the Site
The existing building was constructed in 1958 and was occupied by the Pacific Telephone and Telegraph Company as an office (1959-1980), Little Rascals Childcare Center (1980-2008), and most recently as a childcare center serving Google employees (2008-2023). The site is currently vacant.
The applicant submitted an SB 330 Preliminary Application on December 17, 2024, which locked in the development standards and fees in place at that time. There are no active neighborhood preservation complaints for the project site. The formal Planning Application was submitted on June 13, 2025, within the 180-day timeframe to submit a development application after a preliminary application under SB 330.
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.
Applicable Design Guidelines: The City’s Multi-Family Objective Design Standards provide requirements for site layout, architecture, and design. These requirements are referenced in the discussion and analysis below.
ENVIRONMENTAL REVIEW
Assembly Bill (AB) 130, which became effective in 2025, established a new statutory exemption under the California Environmental Quality Act (CEQA) for qualifying infill housing projects that meet specified criteria. The exemption is set forth in new Section 21080.66 of the Public Resources Code. The proposed project qualifies for this exemption because it satisfies the applicable eligibility criteria, including requirements related to lot size (no more than 20 acres), urbanized location, consistency with the General Plan and Zoning, minimum residential density, and no demolition of a historical resource. Accordingly, the project is exempt from CEQA, and no further environmental review is required.
In accordance with AB 130, the City initiated and completed the required tribal consultation. Four California Native American tribes responded to the City’s invitation to consult. Of those, two requested cultural resources awareness training for the construction personnel and/or tribal monitoring during excavation.
City staff coordinated with the requesting tribes to address concerns related to ground-disturbance activities. The requested measures were communicated to the applicant for incorporation into the project’s construction planning. As required by AB 130, the City conducted consultation in good faith and considered tribal concerns in accordance with the statute. The agreed-upon measures have been incorporated into the project's Conditions of Approval, as applicable (see Condition of Approval BP-27, in Attachment 3).
DISCUSSION
Present Site Conditions
The 1.45 acre project site is located at the southwest corner of S. Bernardo Avenue and W. Olive Avenue. One- and two-story single-family and multi-family residences are located adjacent to the north and east, and to the west across S. Bernardo Avenue and south across W. Olive Avenue. A grocery store, restaurants, and other commercial uses are located further to the south along El Camino Real.
The site includes an existing 13,170 square-foot single-story building, 55 trees on the property and 9 street trees, a surface parking lot, and an L-shaped private driveway that provides vehicular access from S. Bernardo Avenue and exits onto W. Olive Avenue.
Site Layout and Architecture
The proposed project includes six residential buildings distributed throughout the site, with each building containing between four and six dwelling units. The development is organized around a 26-foot wide, U-shaped drive aisle with two driveways from W. Olive Avenue. Pedestrian access is provided from both street frontages on W. Olive Avenue and S. Bernardo Avenue. Eight visitor parking spaces are located along the eastern portion of the site, including one space that would serve as a shared loading zone during the day and as visitor parking during nighttime hours. A shared usable open space is located at the center of the site, and each unit includes a private balcony.
The proposed buildings would be three stories tall, with a maximum height of approximately 40 feet and 8 inches measured to the top of roof. The project would consist of six three-bedroom units and 22 four-bedroom units, with unit sizes ranging from approximately 2,542 to 2,696 square feet, inclusive of attached two-car garages.
The architecture is best characterized as contemporary in style with modern Craftsman and Farmhouse influences. The buildings incorporate gable roof forms, vertical projections, and façade offsets to break up the building massing. Exterior materials include grey brick veneer, tan wooden vertical lap siding, dark cementitious panels, and grey and white stucco. The interior units have a standing seam metal awning above the third floor windows, while pedestrian doors incorporate vibrant accent colors such as green and orange that add visual interest and variety to the facades. Staff is supportive of the design as it is complementary to the architectural style of the neighborhood. See Attachment 5 for site and architectural plans.
Residential Density
The project site has a General Plan land use designation of Medium Density Residential which has a residential density requirement (“base maximum density”) range of 15 - 24 dwelling units (du) per acre. The Housing Element includes Policy H-1.4 requiring a minimum of 75% of the base maximum density or 18 du/acre. The proposed density of 19.3 du/acre complies with this requirement.
Development Standards
While the project complies with several applicable development standards in the SMC and Objective Design Standards, 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 moderate-income ownership units and payment of an in-lieu fee for the remaining fractional unit, which complies with the City's 15% inclusionary housing requirement and qualifies the project for benefits under the State Density Bonus Law. The project may request one concession and an unlimited number of waivers of development standards.
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 from the requirement to achieve 100 points under Table 4A, Building Elevation Design Strategies, of the Objective Design Standards, due to the costs required to provide more building articulation. Instead, the project will score 50 points through the use of varied window sizes, covered porches, and scoring lines on the wall surfaces.
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. Lot Coverage: The project proposes 40.3% lot coverage where the maximum allowable is 40% (per SMC Section 19.32.020). Lot coverage is comprised of all units including the market rate units that range in size from 2,542 to 2,696 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 rate units are comparable to other 3- and 4-bedroom townhomes in the city and enables the developer to provide similarly-sized BMR units pursuant to SMC Section 19.67.070.
2. Distance Between Buildings: The code (SMC Section 19.48.030) requires a minimum of 26 feet between the buildings; however, the project proposes 13.4 feet between Buildings 1 & 2, 12 feet between Buildings 4 & 5, and 13.9 feet between Buildings 4 & 6 (see sheet A1.4 of Attachment 5). The requested waiver is reasonable in that it enables the project to maximize the number of units and meet City density requirements, parking and open space in the development while providing building separation that allows for walkways, landscaping and open space.
3. Building Height: The project proposes a building height up to 40-feet and 8-inches tall where a maximum building height of 35 feet is allowed, per SMC Section 19.32.020. The proposed building height is comprised of approximately 8’-1” to 9’-1” interior plate height for each floor in the 3-story units, room between each floor, and pitched roof with attic. The requested waiver is reasonable in that the proposed three-story and pitched roof design are similar to other townhome projects in the city.
4. Front Yard Setbacks: The applicant is proposing a 15-foot front setback on South Bernardo Avenue West Olive Avenue where 20-feet is required. The requested waiver is reasonable in that it enables the project to maximize the number of units, parking, and open space in the development while providing space for walkways, trees, landscaping, and bioretention basins in the front yard setback area. Additionally, the proposed 15-foot setback is similar to the front yard setback at 452 South Bernardo Avenue which is the adjacent multi-family to the north of the project site. Refer to sheet A1.4 of Attachment 5.
5. Rear Yard Setback (East): The code (SMC Section 19.34.070) requires a rear setback of 20 feet; however, the applicant is proposing rear setback ranging from 12-feet to 15 feet adjacent to the townhouse unit labeled as Lot 16 in Building 3. The requested waiver is reasonable in that this enables the project to maximize the number of units, parking and shared open space area in the development while meeting the rear setback requirement for the majority of the site except for the 42 feet 3.5-inch segment adjacent to Lot 16.
6. Parking: Under State Density Bonus Law, the maximum amount of parking that can be required of this project, based on the project’s bedroom count, is 64 spaces (inclusive of guest and accessible parking). The project proposes 64 spaces including 56 residential parking spaces and eight visitor parking spaces, one of which would function as a shared loading zone during daytime hours and visitor parking during nighttime hours.
7. Loading Zone: The City’s Objective Design Standards (ODS) Section 5.2.4 requires one loading zone per building with a minimum length of 35 feet and a minimum area of 350 square feet. However, as mentioned above, the project proposes to utilize one of the 8.5-foot by 22-foot visitor parking space as a shared loading zone during daytime hours and visitor parking during nighttime hours. The requested waiver is reasonable in that this enables the project to maximize the number of units in the development while providing a loading zone during peak demand hours.
8. Building Frontage at Front Setbacks: The project proposes 100% of the building width to be located within the front setback where the ODS Section 2.2 requires that only 65-85% of the building width be located at the front yard setback. The requested waiver is reasonable in that this enables the project to maximize the number of units, parking and open space in the development while providing a consistent building frontage with front entrances along South Bernardo Avenue that allow for “eyes on the street”.
9. Private Balcony Dimensions: Certain units in the development provide balconies that are 5-feet 6-inches deep and 66 square feet, or 6-feet 6-inches deep and 92.6 square feet, which is less than the required minimum of 7-feet in any direction and 80 square feet minimum size per SMC Section 19.37.100. The requested waiver is reasonable in that the project also provides ground level open space for individual units.
10. Residential Buffer for Surface Parking: The project proposes a residential buffer of 4-feet 6-inches between the visitor parking lot and side property line, where a minimum of 15 feet is required per ODS Section 5.3.1.2. The requested waiver is reasonable in that this enables the project to maximize the number of units, parking and open space in the development while providing buffer area for landscaping.
11. Landscape Buffer: The project proposes a landscape buffer of 4-feet 6-inches, where a minimum planted area of eight feet within the 15-foot residential buffer is required per ODS Section 7.7.2. The requested waiver is reasonable in that this enables the project to maximize the number of units, parking and open space in the development while providing landscaping. In addition, the project will provide a seven-foot height fence to screen from the neighbors, helping to satisfy the intent of the requirement.
12. Ground Floor Plate Height: The project proposes a ground floor plate height of 8-feet and 1-inch where the City’s Objective Design Standards requires a minimum ground floor plate height of 14 feet. A ground floor plate height of 14 feet would trigger aerial apparatus access requirements from the Fire Department, resulting in the loss of at least one residential unit.
13. Division Standards for Low-Rise Multi-Family Development: The project proposes building elevations to be vertically divided into modules of 21’-1” to 23’-1” wide where 30’ to 50’ is required per ODS Section 3.5. The requested waiver is reasonable in that complying with the development standard would result in wider and fewer residential units.
14. Parking Lot Shading Requirements: The project proposes 0.7% shading in the parking lot and drive aisles, where a minimum of 50% is required per ODS 19.46.120. The requested waiver is reasonable in that there are alternative ways to provide shading and in this case the proposed housing units also contribute to shading the driveways and parking spaces. Additionally, the amount of space necessary to accommodate the required tree canopy and their associated root system would result in fewer residential units.
15. Roof Eaves: The project proposes roof eaves between six inches to one foot, where a minimum of two feet is required per ODS Section 3.6.2.1. The requested waiver is reasonable because accommodating the required eaves would cross lot lines and require a new site plan configuration. The proposed roof eaves are compatible with the proposed architectural style.
16. Pedestrian Walkway: The code requires a minimum of five feet wide walkway for the first 50 feet adjacent to each vehicle access lane. The project is not proposing any walkways adjacent to the driveways. The requested waiver is reasonable because if walkways were provided, they would end at the residential garages and would not connect to any other walkways. Instead, the project proposes walkways from South Bernardo Avenue to connect to the landscape area between Buildings 1 & 2, and a second walkway to connect from West Olive Avenue to the common open space area. The alternative walkway locations are visible and provide direct pedestrian access to open space areas; and are reasonable given the proposed site layout.
Overall, staff supports the requested concession and waivers.
Floor Area Ratio
The R-3 zoning district does not have a maximum floor area ratio (FAR). The proposed FAR is 116%, which is allowed. Staff finds that the proposed FAR is in line with that for similar three- and four-bedroom townhome projects and provides reasonable living area for future residents.
Parking and Loading Zone
The project provides a total of 64 parking spaces, including 56 residential spaces located within private garages. Each unit is provided with two side-by-side garage parking spaces. The project also includes eight visitor parking spaces, one of which would function as a loading zone during the day (8:00 a.m. to 6:00 p.m.) and as visitor parking during evening and overnight hours (6:00 p.m. to 8:00 a.m.). Street parking would remain available on both South Bernardo Avenue and West Olive Avenue.
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 exceeds the minimum requirement by achieving five points through its proximity to transit and commercial uses, and by distributing TDM informational materials to new residents and annually to all residents.
Usable Open Space and Landscaping
SMC Section 19.37.040 requires a minimum of 400 square feet of usable open space for each residential unit, or 11,200 square feet total. The project provides 11,571 square feet of usable open space including private decks, which exceeds the Municipal Code requirement.
SMC Section 19.37.040 requires a minimum of 425 square feet of landscaping for each residential unit, or 11,900 square feet total. The project provides 23,730 square feet of landscape area, which exceeds the Municipal Code requirement.
Tree Preservation
A Preliminary Arborist Report was prepared for the proposed project, which identified 64 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 54 existing trees, 12 of which qualify as Protected Trees under the Sunnyvale Municipal Code, defined as trees with a trunk circumference of 38 inches or greater (measured at 4.5 feet above grade) that require a permit for removal. The proposed project has been designed to accommodate 90 new trees throughout the site, which exceeds the minimum requirement of 25 replacement trees.
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.
After a ruling by the Ninth Circuit Court of Appeal invalidating the City of Berkeley’s ban on natural gas infrastructure, in May 2024 the City of Sunnyvale suspended enforcement of the all-electric provisions in its Reach Code. Therefore, projects are not required to build all-electric, but the applicant is encouraged to voluntarily implement all-electric construction with no natural gas connection.
Solid Waste and Recycling Access
The project includes single-family garbage, recycling, and food scrap service for each unit, with individual carts to be staged on-site during trash collection in front of the individual garage doors. 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 allows for the subdivision of the existing lot into 28 lots and one common parcel. Through the required Covenants, Conditions, and Restrictions (CC&Rs), the future Homeowners Association (HOA) will be responsible for ensuring ongoing maintenance of common areas such as surface parking, landscaping, private walkways, common usable areas, and private/public utilities. Refer to Condition of Approval #TM-1 in Attachment 3.
Easements
The development includes several street and utility easements. Private easements are provided to enable ingress/egress, emergency vehicle access, and private storm drain, sanitary sewer, public utility, and water easement. The primary access easement is a 26-foot-wide U-shaped configuration, consistent with the drive aisle. A private easement and maintenance agreement will be created for common use and perpetual maintenance of certain improvements within these easements. Refer to Conditions of Approval #TM-1 in Attachment 3.
Hazardous Materials
The site was historically used as agricultural land prior to its more recent use as office and childcare center. The applicant prepared a Phase I and Phase II Environmental Site Assessment (see Attachment 7), which concluded that no significant environmental concerns were identified and that the site does not pose an ongoing human health risk. In addition, Condition of Approval PF-7 requires the applicant to submit the environmental reports to the San Francisco Bay Regional Water Quality Control Board, as applicable, and comply with any requirements or recommendations of the agency prior to the issuance of grading or building permits. The Regional Water Quality Control Board will continue to be the regulatory agency reviewing and approving the measures.
Construction
The project would be required through a standard Condition of Approval (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, noise compliance contact, 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 park in-lieu fee, traffic impact fee, and school impact fee as noted in the Conditions of Approval.
Public Contact
Neighborhood Outreach Meeting
The applicant hosted a neighborhood outreach meeting on February 5, 2026, with seven members of the public present. The attendees expressed concern about traffic, safety, and the absence of a dedicated loading zone, while also expressing support for housing, the building design, and the tree plan. Staff also received four comment letters from neighbors raising similar concerns about traffic, safety, and the absence of a loading zone, while sharing both support and concerns about the proposed housing development.
The applicant has revised the plans to include a loading zone on site during daytime hours, providing a designated area for delivery and rideshare vehicles to temporarily park. This reduces the need for vehicles to stop along the street or within travel lanes, improving traffic safety and circulation.
Planning Commission Study Session
The Planning Commission reviewed the project plans at a study session on February 9, 2026. The Planning Commission generally inquired about enlarging and converting one of the visitor parking spaces to a loading zone, planting larger box trees, and improving seating and landscape design, while generally expressing support for the building design.
The applicant has revised the plans to include an off-street loading zone during daytime hours and enhanced the landscape plans to incorporate additional native and drought-tolerant plantings.
Public Noticing
Public contact was made by posting the Planning Commission meeting agenda on the City's official-notice bulletin board at City Hall and posted in the Sunnyvale Sun. 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.
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 from the public were received by staff.
ALTERNATIVES
1. Find the project is exempt from CEQA per AB 130; and approve the Use Permit and Vesting Tentative Map with the Recommended Findings in Attachment 2 and subject to the Recommended Conditions of Approval in Attachment 3.
2. Find the project is exempt from CEQA per AB 130; and approve the Use Permit and Vesting Tentative Map with modified conditions.
3. Do not make the required findings and direct staff where changes should be made.
STAFF RECOMMENDATION
Recommendation
Alternative 1. Find the project is exempt from CEQA per AB 130; and approve the Use Permit and Vesting Tentative Map with the Recommended Findings in Attachment 2 and subject to the Recommended Conditions of Approval in Attachment 3.
JUSTIFICATION FOR RECOMMENDATION
The proposed project furthers the goals and objectives of the General Plan by providing 28 residential units, including four below-market-rate units, thereby increasing the City’s housing supply. The project includes land use/intensities and a site design that contributes to an improved quality of life, complies with applicable citywide objective design standards, and results in a compatible residential development that complements the surrounding neighborhood. The applicant's justifications for the requested concession and waivers are reasonable as explained above and would 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, Senior 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. Links to Phase I and Phase II Environmental Site Assessments
8. Noise Study
9. Arborist Report
10. Draft Transportation Demand Management (TDM) Plan
11. City of Sunnyvale CEQA GHG Emissions Compliance Checklist