REPORT TO CITY COUNCIL
SUBJECT
Title
Proposed Project:
Introduce an Ordinance and Adopt a Resolution to:
Amend Sunnyvale Municipal Code Chapter 19.36 (El Camino Specific Plan District) and Adopt an Ordinance to Implement Housing Element Program H17: El Camino Real Specific Plan (ECRSP) Commercial Requirement for Affordable Housing Developments and Adopt a Resolution to Establish and Adopt Program H-17 for Modified Commercial Requirements in Mixed-Use Development in the El Camino Real Specific Plan.
Location: El Camino Specific Plan Area (APNs: Various)
File #: PLNG-2024-0581
Zoning: ECR-Various
Environmental Review: Non-discretionary project (Public Resources Code Section 21080(b)(1), California Environmental Quality Act (CEQA) Guidelines Sections 15268, 15357)
Project Planner: Shaunn Mendrin, (408) 730-7431, smendrin@sunnyvale.ca.gov
Report
SUMMARY OF COMMISSION ACTION
The Planning Commission considered this item on September 23, 2024. The Planning Commission noted concern about losing retail on El Camino Real. Staff clarified that this program is targeted toward two housing developments as discussed in the Housing Element. Staff suggested that the program be brought back to the City Council for reconsideration after two developments had been approved. The Planning Commission voted 6-0 (Figone absent) in accordance with Alternative 2 (Alternative 1 with modifications) to recommend to the City Council:
a. Find that the Action is Exempt from the California Environmental Quality Act subject to (CEQA) pursuant to Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15268 and 15357;
b. Introduce an ordinance to amend Sunnyvale Municipal Code Section 19.36.090 relating to minimum commercial development for affordable housing developments developed in the El Camino Real Specific Plan mixed-use zoning districts;
c. Adopt a Resolution that establishes the program for modified commercial requirements in mixed-use development in the El Camino Real Specific Plan; and
d. Staff to return to the City Council after two projects that include 98% or more affordable units have been approved under Program H17, to consider whether any changes should be made to the program.
CHANGES SINCE THE PLANNING COMMISSION HEARING
The draft resolution (Attachment 3) has been modified to reflect the Planning Commission recommendation to revisit the program after two affordable housing developments have been approved.
The resolution has also been modified to refer to 100% affordable housing projects vs. the prior reference to “greater than 98%” affordable housing projects. This change was initiated by staff to provide clarity and better reflect the common practice of excluding manager’s units when referencing a 100% affordable housing development. The wording also aligns with the text in the Housing Element. This updated language reflects staff’s intent that an affordable development with 50 or fewer total units with one manager unit could qualify for the program.
Public Contact
Notice of the hearings was emailed to a list of commenters on the Housing Element and affordable housing developers. Staff received three comments on the item before the Planning Commission meeting.
Two clarifying emails from Chuck Fraleigh and Jona Quinto were received. Staff provided responses. A third letter from the Building Industry Association (BIA) was received recommending that the Planning Commission not support the proposed code amendment and resolution based on early feedback on the Housing Element from the Department of Housing and Community Development (HCD). In July 2023, HCD had recommended that Housing Program H17 be revised as follows:
Program H17 (Commercial Requirement) revised to ‘implement a program to address the commercial requirement’ on 100 percent affordable housing sites in the El Camino Real Specific Plan. However, the Program should specifically commit to remove or reduce the commercial requirement across all housing development in the Specific Plan area.
The City provided clarification to HCD that El Camino is the City’s commercial corridor and the intent of program H17 is to incorporate housing into an existing commercial corridor, not to lose the City’s commercial base. Based on the discussions with HCD, the last sentence of their recommendation was not included. Ultimately, the Housing Element was certified by HCD including Program H17 to read as follows:
H17. El Camino Real Specific Plan Commercial Requirement. Implement a program to address the commercial requirement for 100 percent affordable housing developments in the El Camino Real Specific Plan (ECRSP) on sites zoned for mixed-use by providing a range of options including condominium style ownership to enable separate retail and housing ownership for vertical mixed use, horizontal mixed use options (retail in a separate building from the residential development) with or without a lot split, or a reduction in the minimum commercial requirement.
Objective: Remove constraints to 100% affordable housing developments in high resource areas along El Camino Real to facilitate a minimum of two 100% affordable developments. Continue to require inclusionary units within market rate developments as well.
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 the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and report are available at the Sunnyvale Public Library, NOVA Workforce Services reception desk on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours) and on the City’s website.
ALTERNATIVES
1. Take the following actions:
a. Find that the Action is exempt from the California Environmental Quality Act subject to (CEQA) pursuant to Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15268 and 15357;
b. Introduce an Ordinance to amend Sunnyvale Municipal Code Section 19.36.090 relating to minimum commercial development for affordable housing developments developed in the El Camino Real Specific Plan mixed-use zoning districts; and
c. Adopt a Resolution that establishes the program for modified commercial requirements in mixed-use development in the El Camino Real Specific Plan and directs staff to return to City Council to review implementation of this Program and receive further direction after two 100% affordable projects have been approved at a public hearing, or earlier as may be determined by the director of community development.
2. Alternative 1 with modifications.
3. Do not introduce an ordinance or adopt a resolution and provide direction to staff on alternative approaches.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Take the following actions:
a. Find that the Action is exempt from the California Environmental Quality Act subject to (CEQA) pursuant to Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15268 and 15357;
b. Introduce an Ordinance to amend Sunnyvale Municipal Code Section 19.36.090 relating to minimum commercial development for affordable housing developments developed in the El Camino Real Specific Plan mixed-use zoning districts; and
c. Adopt a Resolution that establishes the program for modified commercial requirements in mixed-use development in the El Camino Real Specific Plan and directs staff to return to City Council to review implementation of this Program and receive further direction after two 100% affordable projects have been approved at a public hearing, or earlier as may be determined by the director of community development.
JUSTIFICATION FOR RECOMMENDATION
The recommended Ordinance and Resolution are consistent with the City’s Certified 2023-2031 Housing Element Goals (H-1 and H-4) and related policies to provide adequate housing near transit and in high resource areas of the City, and to remove governmental constraints on the development of housing. The Ordinance and Resolution implement Housing Program H17 to address the commercial requirement for affordable housing developments in the El Camino Real Specific Plan area. The new Program H17 also includes provisions for developments that include a high percentage of affordable housing units but may not be 100% affordable. As recommended by the Planning Commission, staff will return to City Council for further direction when a minimum of two affordable housing developments have been approved, or earlier as determined by the Community Development Director.
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
___ 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
X General policy and legislative actions
Staff
Prepared by: Shaunn Mendrin, Planning Officer
Reviewed 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 [24-0910, September 23, 2024] (without attachments)
2. Draft Ordinance
3. Draft Resolution
4. Full List of Relevant Goals, Policies and Programs
Additional Attachments for Report to Council
5. Excerpt of Draft Minutes of the Planning Commission Meeting of September 23, 2024
6. Public Comment Letters