REPORT TO PLANNING COMMISSION
SUBJECT
Title
Proposed Project: Related applications on a 1.81-acre site:
Special Development Permit to redevelop a portion (westerly portion) of an existing shopping center (Fremont Corners) into a mixed-use Village Center with 3,384 square feet of commercial space and 35, four-story townhome-style condominiums with associated parking and site improvements including common public open space.
TENTATIVE MAP to subdivide the lot into five lots and 35 condominiums.
Location: 102 E. Fremont Ave. and 1310 S. Sunnyvale-Saratoga Rd. (APN: 309-01-002)
File #: 2021-7161
Zoning: C-1/PD (Neighborhood Business / Planned Development)
Applicant / Owner: TTLC Sunnyvale FC, LLC / Fremont Corners, Inc Et Al
Environmental Review: Consistent with CEQA Section 15183 and 15183.3 (Projects Consistent with a Community Plan, General Plan, or Zoning and Streamlining for In-fill Projects).
Project Planner: Shétal Divatia, (408) 730-7637, sdivatia@sunnyvale.ca.gov
Report
REPORT IN BRIEF
General Plan: Village Mixed Use (VMU)
Existing Site Conditions: Two commercial buildings and parking lot
Surrounding Land Uses
North: One-story commercial (shopping center) (across Fremont Ave)
South: Two-story single-family homes
East: Shopping center (24-Hr Fitness)
West: One-story commercial (restaurants) (across Sunnyvale-Saratoga Rd)
Issues: Inconsistencies with standards
Staff Recommendation: Alternative 1: Make the required Findings to approve the California Environmental Quality Act (CEQA) determination that the project is consistent with CEQA Guidelines Section 15183 and 15183.3 (Projects Consistent with a Community Plan, General Plan, or Zoning and Streamlining for Infill Projects) as noted in checklist (Attachment 6); approve the Special Development Permit and the Tentative Map and the Recommended Findings in Attachment 3 and subject to the Recommended Conditions of Approval in Attachment 4.
BACKGROUND
Description of Proposed Project
The proposed project is located within the Fremont Corners shopping center, which is comprised of three parcels totaling 7.21 acres. The subject property is the western-most parcel and is 1.84 acres in size. The site is currently developed with two commercial buildings totaling approximately 27,900 square feet and surface parking. The proposed project includes demolition of approximately 24,500 square feet of commercial space, renovation of 3,384 square feet of existing commercial space, and construction of 35 residential units (condominium ownership) within three four-story buildings.
A Special Development Permit (SDP) is required for redevelopment in the C-1/PD zoning district, pursuant to Sunnyvale Municipal Code (SMC) Section 19.90.010.
The Tentative Map is required prior to a Final Map for the creation of five lots and 35 condominiums for individual ownership. The required findings are in Attachment 3.
See Attachment 1 for a map of the vicinity and mailing area for notices and Attachment 2 for Data Table of the project.
State Housing Legislation
The project applicant is utilizing State Law, including the Housing Accountability Act (HAA), Senate Bill (SB) 330 and California State Density Bonus Law. Together, these laws allow residential development throughout the city based on General Plan designations, even if the zoning has not yet been updated with residential development standards. These laws also limit the circumstances to deny a housing development project that is consistent with applicable “objective standards” and permit the applicant to propose modifications to applicable standards in exchange for affordable units. The HAA defines “objective” to mean “involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.”
The California State Density Bonus Law (Government Code Section 65915) was created to incentivize the construction of affordable units and applies to for-sale housing projects that provide at least 10% of units as affordable to moderate income households. By providing four affordable units (12.5%, as required at the time of the Preliminary Application submittal) and paying an in-lieu fee for a fractional unit (0.37%) per the City’s Below Market Rate Ownership Ordinance (SMC Chapter 19.76), the applicant is entitled to the following benefits under the Density Bonus Law:
Previous Actions on the Site
The Fremont Corners shopping center was developed in the late 1950s. Several SDPs have been granted throughout the years for uses, such as restaurant, recreational, and entertainment. In July 2021, the eastern parcel of the site was approved for 50 residential units, open space and retention of 8,094 square feet of commercial building.
EXISTING POLICY
General Plan Goals and Policies:
LAND USE AND TRANSPORTATION ELEMENT (LUTE)
From LUTE page 3-36
Features and amenities of a Village Center include the following:
o Supportive of a lifestyle without a private automobile
o Neighborhood-serving or community-serving commercial core
o Pedestrian-oriented design: active ground-floor uses and generous outdoor spaces
o Activated by mixed use (commercial with residential)
o Easily accessed by pedestrian and bicycle networks
o Regular transit service
o Reduced need for parking
o Unique design guidelines to address form
o Neighborhood gathering spaces (e.g., plazas, coffee shops, community gardens, taverns)
From LUTE page 3-89
GOAL LT-5: CREATION, PRESERVATION, AND ENHANCEMENT OF VILLAGE CENTERS AND NEIGHBORHOOD FACILTIES THAT ARE COMPATIBLE WITH RESIDENTIAL NEIGHBORHOODS - Support the development of Village Centers that create an identity and “sense of place” for residential neighborhoods, provide neighborhood gathering places, and allow a vibrant mix of public, commercial, and residential activities. Through development review and other permitting processes, ensure adequate protection is provided to residential neighborhoods when new uses and development projects are considered.
Other City goals and policies from the General Plan which pertain to the proposed project are provided in Attachment 3. Relevant goals and policies from adopted City plans and programs are included in other sections of this report.
The General Plan designates the project site as Village Mixed Use (VMU), which is intended to encourage redevelopment of older shopping centers and office parks with mixed-use development to provide services and residential diversity close to existing residential areas. A more complete discussion of Village Centers is found in the Land Use and Transportation Element of the General Plan on pages 3-35 to 3-37 and pages 3-88 to 3-89 (see link in Attachment 10). The VMU designation for this corner also includes the adjacent gas station, for a total area of 7.8 acres.
General Plan Action LT-5.1e requires projects within the VMU designation to prepare a Public Engagement Plan (PEP) that provides public outreach and input from the community prior to development of a Village Center Precise Plan. A PEP for Fremont Corners shopping center was approved by the Planning Commission and City Council in July 2019. Two outreach meetings were held in August 2019. The legislative changes made by SB 330 took effect in January 2020 and the applicant decided to discontinue the PEP and Village Center Precise Plan efforts and instead, pursue a development application using SB 330 and other State Laws noted above.
Sites with the General Plan VMU designation allow an average residential density of 18 units per acre, up to four stories in height and require a minimum of 10% floor area ratio (FAR) and up to 25% for commercial uses. The proposed project includes a residential density of 19.4 units per acre and 4.2% FAR of commercial use. The applicant seeks a waiver for the residential density and commercial intensity prescribed by the General Plan (discussed in the Development Standards section of the report).
Climate Action Playbook: Sunnyvale's Climate Action Playbook (CAP) was updated in 2019 with a goal to reduce greenhouse gas emissions by 56% by 2030 and 80% by 2050. The CAP includes six core strategies including promoting clean energy, decarbonizing buildings, decarbonizing transportation and sustainable land use, managing resources sustainably, empowering our community, and adapting to a changing climate. The CAP includes the following goals related to the project:
Play 3.1: Increase opportunities for and encourage development of mixed-use sites to reduce vehicle miles per person.
Move 4.F: Implement the City’s Urban Forest Management Plan and continue to protect and greatly expand tree canopy.
Vision Zero Plan: The Vision Zero Plan was adopted in 2019 with the long-term goal to eliminate, with an immediate commitment to reduce traffic fatalities and serious injuries on Sunnyvale roadways.
Vision Statement
Sunnyvale Vision Zero is a community-driven and data-driven initiative to eliminate preventable traffic fatalities and serious injuries. In the coming years, Sunnyvale will aim to reduce collisions through improved transportation infrastructure and programming, achieving a 50 percent reduction in fatalities and serious injuries by 2029 and continued progress towards zero in the ten years that follow.
Countermeasure Toolbox:
CONSOLIDATED DRIVEWAYS - Removal of redundant driveways where multiple driveways provide access to one property.
The plan takes a ‘safety first’ approach, prioritizing traffic safety over other transportation considerations; it acknowledges that traffic deaths and serious injuries are preventable; and a multi-disciplinary approach that brings together a diverse set of stakeholders to address the complex problem of traffic safety. The roadways (Fremont Avenue and Sunnyvale-Saratoga Road) serving the subject site have been identified to be in High Injury Network (HIN) corridor which accounts for 60 percent of killed or seriously injured (KSI) collisions on just 7 percent of the Sunnyvale roadway network. The Plan provides a countermeasure toolkit that includes consolidation of driveways to remove redundant driveways where multiple driveways provide access to the same property, such as the three driveways provided for the subject site.
Applicable Design Guidelines: The City-Wide Design Guidelines and Mixed-Use Development Toolkit provide recommendations for site layout, architecture, and design. Objective guidelines are referenced in the discussion and analysis below, as well as in the Findings for Approval in Attachment 3.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) Guidelines Section 15183 and 15183.3, (Projects Consistent with a Community Plan, General Plan, or Zoning and Streamlining for Infill Projects) applies to projects that qualify as infill development that meet specified criteria. In order to qualify for streamlined procedures, a project site must either be in an urban area that has been previously developed or have a qualifying urban development (Sustainable Communities Strategy), defined as one or a combination of residential, commercial, public institutional, transit or transportation passenger facility, or retail use on at least 75% of the site perimeter; and meets the performance standards in the CEQA Guidelines contained in Appendix M for a project to be eligible for the streamlined process.
The attached checklist (Attachment 5) confirms that the project qualifies for infill streamlining and provides documentation showing that the impacts of the project fall within the impacts evaluated in the City of Sunnyvale Land Use and Transportation Element (LUTE) Update Environmental Impact Report (EIR) or can be substantially mitigated by uniformly applicable development policies or standards.
DISCUSSION
Present Site Conditions
The Fremont Corners shopping center is located near the southeast corner of Fremont Avenue and Sunnyvale-Saratoga Road. The shopping center is comprised of three parcels. The City Council approved the redevelopment of the easterly parcel (commonly referred to as the “Jakes” site) in 2021 with 50 residential units (condominiums) and renovation of an existing 8,094 square foot commercial building (SDP 2020-7525). The middle parcel is currently occupied by a gym (24-Hour Fitness), with no plans to redevelop at this time. The westerly parcel, which is the subject of this application, is currently developed with two commercial buildings totaling 27,900 square feet. Cross access easements run across all three parcels.
The shopping center is surrounded by commercial, office and multi-family residential development to the north and west, Fremont High School to the northwest, and one and two-story single-residential and multi-family residential development to the east and south. The gas station adjacent to the shopping center, located at the southeast corner of Fremont Avenue and Sunnyvale Saratoga Road, is not part of the shopping center and has no plans for redevelopment at this time.
Site Design and Architecture
Applicant’s Proposed Site Plan (commercial in back): The existing site contains two commercial buildings totaling 27,900 square feet tucked towards the back (south side) of the site with parking in front. The commercial building facing Sunnyvale-Saratoga Road was previously occupied by Longhorn Restaurant and other commercial tenants and is proposed for demolition. The interior commercial building was also occupied by commercial tenants, including a dry cleaner. The applicant proposes to demolish 4,836 square feet of the 9,500-square foot commercial building and renovate the remaining 4,664 square feet for a future retail tenant. Significant renovations are proposed for this structure, including removing much of the exterior walls; this amount of change which would be considered a new building from a Building Code perspective. An outdoor seating area (3,384 square feet) is proposed along the west side of the commercial building.
Applicant’s Proposed Site Plan
The project also includes 35 residential units (condominium ownership) within three buildings that are three to four-stories in height. One of the residential buildings is proposed to be sited along the Fremont Avenue frontage with the longer side parallel to the property line shared with the gas station. The second residential building will face Sunnyvale-Saratoga Road and the third building is located in the interior of the site. The residential units range in size from 1,364 square feet to 2,037 square feet of living area and contains two or three bedrooms. Each unit also includes an assigned tandem garage that is greater than 450 square feet in size.
The project also includes a 4,068 square foot common open space (Paseo) which is adjacent to the 4,664-square foot commercial open space. The Paseo is proposed to include pedestrian walkways, benches and trees that will be accessible to the public (easement) and maintained by the future residential HOA. The commercial open space area will include a pergola structure, seating, and landscaping, and will also be accessible to the public.
Additionally, the project includes associated site improvements such as parking lot restriping, a solid waste enclosure for the commercial tenant, street dedications and 10-foot-wide sidewalks along both street frontages.
The proposed site plan maintains the existing three driveways (one on Fremont and two on Sunnyvale Saratoga Road) and two existing cross access easements with the adjacent gym. The site is located near the intersection of Fremont Avenue and Sunnyvale-Saratoga Road and Fremont High School. The City’s Principal Transportation Engineer analyzed citywide collision data and found that this intersection and the roadways near the intersection experience more collisions as compared to similar intersections/roadways within the City (see Attachment 7 - Memo from Department of Public Works for detailed information). In addition, the analysis found that most of the collisions in this intersection occurred due to the conflicts between vehicles and bicyclists or pedestrians at a driveway, or due to vehicles slowing down/stopping near a driveway. Frequent driveways increase the potential for conflicts, which in turn leads to a higher number of collisions than locations with less frequent driveways.
As a result of the Principal Transportation Engineers analysis, staff recommends (Condition of Approval PS-1 a) the removal of one of three driveways for reasons of public safety. Removal of one driveway is warranted to help reduce the health and safety impacts at this intersection. The Principal Transportation Engineer notes that this recommendation is supported by the City’s adopted policies, including LUTE, Complete Streets Policy, and Vision Zero Plan, as well as guidelines set forth by the Federal Highway Administration (FHWA) and American Association of State Highway and Transportation Officials (AASHTO). The Vision Zero Plan provides a toolbox to reduce and eliminate fatal and serious accidents by removing/consolidating multiple driveways
Staff’s Recommended Revised Site Plan (commercial in front): General Plan Policy LT-5.1f encourages “distinctive landmark features or focal elements at Village Centers and at points of entry or gateways into neighborhoods from the Village Centers.” Policy LT 13.4 also encourages “conveniently located retail”.
The applicant’s proposed site plan with residential buildings along the street frontages lacks distinctive landmark features and does not create an effective gateway into the neighborhood. The proposed location of the commercial building is not convenient, as it is tucked towards the back of the site and has no street presence. Retail uses that service the general public need to be located such that they can be directly or partially viewed and accessed from a public street to make them convenient for their customers and to be successful businesses. None of the commercial buildings in the shopping center (existing buildings, plus project building) would not be visible from Sunnyvale-Saratoga Road with the proposed location of the four-story residential buildings. The proposed commercial building would not be easily visible from Fremont Avenue.
Staff finds that the goal to provide much-needed housing can be achieved, without reducing the number or size of the proposed units, while also meeting the intent of the General Plan by relocating the commercial building at the front of the site and moving the residential building to the back. Placing the retail in this more visible location will contribute to a more vibrant retail environment as stated in General Plan Goal LT-5. Staff’s Recommended Revised Site Plan also removes a driveway on Fremont Avenue, which also addresses the concern about traffic safety related to too many driveways near this busy intersection. This layout also provides a more usable community open space (Paseo) as envisioned for Village Centers in the General Plan. Staff’s recommended layout also reduces the number of housing units in close proximity to the gas station.
The State Housing Law prohibits the City from denying or reducing the density of a project that complies with objective development standards. Therefore, staff does not recommend denial of the project. Rather, staff recommends approval of the project subject to a Condition of Approval that requires the applicant to revise the site plan in a manner that is consistent with staff’s recommended site plan.
Staff’s Recommended Revised Site Plan
The recommended Conditions of Approval in Attachment 4 reflect Staff’s Recommended Revised Site Plan (Attachment 9 - Staff’s Recommended Revised Site Plan). Condition of Approval PS-1 requires the submittal of a staff-level permit to ensure that all plan sheets are updated to reflect Staff’s Recommended Revised Site Plan, such as elevations, landscaping, parking layout, and civil drawings.
If the Planning Commission does not agree with staff’s recommendation and approves the applicant’s proposed site plan instead, alternative conditions of approval are noted in Attachment 5.
Architecture: The architectural style of the proposed buildings is very similar to those of the approved project on the eastern portion of the shopping center. It can be broadly classified as contemporary with modern accent elements and simple forms. Architectural plans are in Attachment 8 and colors and materials are on sheets A15 and A16.
The renovated commercial building will have a flat roof with a roof screen above, metal awnings, vertical metal siding, stucco and stone veneer accent. New store front windows and tenant frontage doors will be installed with dark aluminum frames. The proposed glass will be recessed 4 to 6 inches from the window frames. The building colors will be gray and beige, with a warm terracotta accent.
The architectural style carries over to the residential buildings. The building forms utilize hip roofs, varying wall planes, and a combination of stucco, siding, and stone veneer. The four-story residential buildings drop down to three stories facing Fremont Avenue and the rear (south) property line. The building mass is visually reduced through a change in building planes with varying setbacks, punctuated by projecting balconies, recessed windows, entry porches with metal awning overhangs and changes in materials and color. The buildings are a combination of cool colors (gray and beige) and warm tones (either terracotta and yellow, or muted blue and green). Window trim color will be similar to that of the commercial building, with the glass recessed 2 to 3 inches from the frame. Entry stoops and recessed front doors are proposed. Garage doors are also contemporary in style and are gray in color.
Staff finds that the recommended site layout and architecture are generally consistent with objective City-Wide Design Guidelines. Objective guidelines are referenced in Recommended Findings in Attachment 3.
DEVELOPMENT STANDARDS
In addition to the VMU standards in the General Plan, the project is also subject to the C-1 zoning requirements. Although the C-1 zoning district has a maximum height of two-stories and 40 feet, the project complies with the four-story height limit in the General Plan. The project also complies with several zoning standards, such as lot coverage, total landscaping, and solar access. The applicant proposes nine waivers, one concession, and reduced parking as allowed by State Density Bonus Law. The Project Data Table in Attachment 2 summarizes the project’s compliance with the Development standards.
State Density Bonus Law
Waivers: The State Density Bonus Law entitles the applicant to request an unlimited number of waivers or reductions of development standards if the site constraints would otherwise physically preclude constructing the development with the allowed number of units. The applicant has provided a letter (Attachment 8), which provides justifications for the waivers and concession/incentive. The applicant requests the following nine waivers:
1. Floor Area Ratio (FAR) for commercial use - The General Plan requires a minimum of 10% FAR (of commercial space for Village Center Mixed Use Developments. The proposed commercial building is proposed at 4.2% FAR of the existing parcel.
Staff Comment: Staff recommends approval of the waiver. To comply with the commercial FAR requirement, the commercial component would need to be increased by approximately 4,497 square feet (more than double the proposed square footage). Increasing the commercial square footage while retaining the proposed unit-type would result in decreased landscaping, parking and common open space. The LUTE includes Goal LT-5 (See Existing Policy section of this report) as well as the following policy and action statement that relate to the provision of commercial:
Policy LT-5.1 Strengthen the image that the community is composed of cohesive residential neighborhoods, each with its own individual character and Village Center; allow change and reinvestment that reinforces positive neighborhood concepts and standards such as walkability, positive architectural character, site design, and proximity to supporting uses.
LT-5.1c Allow mixed-use development at appropriate Village Centers while preserving sufficient commercial zoning to serve neighborhood retail and service needs.
2. Residential density - The proposed density of the project is at 19.4 dwelling units per acre where the General Plan Village Mixed use designation allows a maximum average density of 18 dwelling units per acre.
Staff Comment: Staff recommends approval of the waiver. The General Plan allows an average density of 18 dwelling units per acre within the Village Mixed Use designation. The concept of average density was established so that larger Village Center sites comprising several lots had flexibility in the development of these sites. The proposed project is being developed as a single parcel that will also integrate and relate to the other portions of the shopping center when they redevelop in the future to result in a Village Center envisioned in the General Plan. A maximum of 33 dwelling units are permitted on the 1.81-acre lot; however, the State Density Bonus Law allows three bonus units for a maximum of 36 units. Therefore, the proposed 35 units are consistent with the State Density Bonus Law.
3. Frontage landscaping strip - SMC Section 19.37.040 (c) requires a 15-foot wide landscaping strip along the two street frontages. The project proposes 8 feet 4 inches in front of the residential building on Fremont Avenue and 5 feet 11 inches to 8 feet 9 inches in front of the residential building on Sunnyvale-Saratoga Road.
Staff Comment: Staff recommends approval of the waiver. The landscaping standard would require that the proposed residential buildings on Fremont Avenue and Sunnyvale-Saratoga Road be moved back (6 feet 7 inches and up to 9 feet 1 inch, respectively) which would result in a loss of units. Although the reduced width of landscaping on Sunnyvale-Saratoga Road provides inadequate buffer for the residential units from the busy street, it provides visual interest with direct walkways from the sidewalk to the entry porches.
4. Buffer landscaping strip width - SMC Section 19.37.040 (b) requires properties adjacent to residential properties (south property line) to provide a minimum of a 10-foot-wide landscaping buffer strip, where 3 feet to 6 feet 9 inches is proposed.
Staff Comment: Staff recommends approval of the waiver. The buffer landscaping strip requirement applies to non-residential zoning districts; therefore, it applies to the subject site in C-1 (Neighborhood Commercial). The project would be required to provide an additional 7 feet to 3 feet 3 inches to meet the 10-foot buffer landscaping which would result in a loss of units. The existing driveway along this buffer needs to be maintained for fire access easement to the adjacent parcel. The applicant’s proposed site plan leaves the commercial building closer to residential buildings to the south, similar to the current situation; the easement provides the desired separation from the commercial uses.
5. Buffer landscaping planting - SMC Section 19.37.040 (b) requires planting of screening trees and shrubs placed along the length of the buffer (south property line) at intervals not to exceed 20 feet. This area is below the overhead power lines that will continue to remain and so the tree height would be constrained, and adequate screening will not be provided.
Staff Comment: Staff recommends approval of the waiver. The requirement for landscaping in the buffer applies to non-residential zoning districts; the project as conditioned locates residential uses near the buffer area of this commercial zoning district and the typical need for landscape buffers may be reduced. Staff has included a condition of Approval requiring a detailed landscape plan to ensure that appropriate tree species are planted to provide maximum screening of the project from the neighboring single-family uses.
6. Parking Lot Shading - SMC Section 19.46.120 (g) (1) requires projects to provide at least 50% of the parking lot to be shaded within15 years of tree establishment. The proposed project is expected to shade 26.3% of the parking lot.
Staff Comment: Staff recommends approval of the waiver and recommends that additional trees be planted. The project would need to increase (almost double) the tree plantings throughout the site to meet this standard. The project includes community open space that provides landscaping and tree plantings which does not necessarily shade the driveways and does not reduce the heat island effect created with the paved surface. To fully meet this standard a redesign of the project would be necessary, which could reduce parking, size of commercial building and number of residential units. Staff is recommending a condition of approval to use diamond or triangular shaped landscape pockets between proposed parking spaces to provide a few additional opportunities for trees in the parking areas. Staff’s recommendation to add trees to the site would help to expand the citywide tree canopy, which is consistent with CAP Move 4.F.
7. Compact parking spaces - SMC Section 19.46 does not allow compact parking space for non- residential uses, where 11% of the commercial spaces proposed are compact (2 spaces). Up to 10% of unassigned multi-family residential parking is permitted, where 92% is proposed (11 spaces).
Staff Comment: Staff recommends approval of the waiver with modifications to the parking layout. The project exceeds the number of compact spaces allowed for the residential as well as the commercial uses. Most of the proposed parking spaces are located along the southern driveway of the project. Meeting the requirement of fewer compact spaces would require a redesign that could result in fewer parking spaces, reduced landscaping, reduced commercial building or fewer residential units. If standard size spaces are not available it can result in parking over the line into the adjacent space, making the adjacent space unusable for another vehicle. One option would be to provide more standard parking stalls resulting in fewer overall parking spaces for the project; which is already deficient in parking spaces for the commercial use. Another option is to create a few narrower spaces reserved for motorcycles and motor scooters so that more standard sized spaces can be provided and parking for vehicles other than automobiles is also provided. Staff has included a recommended condition of approval to resize two of the unassigned compact residential parking spaces and mark them for motorcycles and motor scooters, and to adjust the width of the other compact residential spaces so they are wider than the compact space (7 feet 6 inches) to allow for additional room.
8. Commercial parking spaces - The applicant intends the commercial building to be used by a future restaurant tenant. SMC Section 19.46.100 requires a minimum of 31 parking spaces for a sit-down restaurant use (9 spaces per 1,000 square feet), where 13 parking spaces are provided.
Staff Comment: Staff recommends approval of the waiver and Condition of Approval GC-13 that would limit the use of the commercial tenant space to a use that requires 4 spaces per 1,000 square feet (such as take-out restaurants and retail), unless cross access parking agreements can be secured with the two adjacent properties to the east, or an off-site parking agreement is obtained. Condition of Approval AT-1 also requires the review of outdoor seating through a staff-level Planning permit to ensure adequate parking.
9. Front yard setback - SMC Section 19.34.030 requires properties in the C-1 zone to meet a minimum of 70-foot front setback. The project has two front yards as the site has frontages on two streets (Fremont Avenue and Sunnyvale-Saratoga Road) and is required to provide 70-foot setbacks from Fremont Avenue and Sunnyvale-Saratoga Road where 8 feet 4 inches and 8 feet 7 inches is proposed as the front setbacks for Fremont Road and Sunnyvale-Saratoga Road respectively.
Staff Comment: Staff recommends approval of the waiver. Meeting this standard would require the residential buildings to be set back an additional 61 feet 8 inches on Fremont Avenue and 61 feet 3 inches on Sunnyvale-Saratoga Road. This could be impossible to accommodate without significant re-design and loss of residential units. The LUTE states that Village Centers will be constructed in accordance with urban design principles and performance standards that support pedestrian activity with buildings close to the street and transit and served by wide sidewalks. As the Village Master Plan has not been completed there is no direction on how close to the property line the buildings should be built.
Staff finds that the requested reductions from development standards are generally not impactful to the existing residential neighborhood, as the proposed building setbacks facing the existing homes to the south exceed minimum setback requirements. The applicant’s justifications note that the application of the requirements noted above constrain the site and would result in fewer units. Most of the applicant’s justifications for the requested waivers are consistent with similar waivers that were approved as part of True Life’s Phase I project at the Jake’s site, except for the waiver for commercial parking spaces.
Incentives/Concessions: The State Density Bonus Law entitles the applicant to request one reduction or exemption from a development standard or requirement as an “incentive or concession” if it results in identifiable and actual cost reductions. SMC Sections 19.38.090 and 19.38.100 require existing overhead lines on the project site’s south property line to be placed underground. The applicant proposes not to underground these existing lines and to maintain existing poles on the site, as the cost to underground would be approximately $1 Million and would require undergrounding work on properties to the south. Staff finds that the applicant’s justifications meet the required finding to grant this concession. Staff recommends approval of the concession.
Reduced Residential Parking: The proposed project provides 70 assigned tandem parking garage spaces (one pair of tandem spaces per unit). SMC Section 19.46(b)(1) only allows tandem parking to meet the parking requirement of 2 spaces for 50% of the units, which is 18 units (rounding up). For the remaining 17 units only one of the tandem spaces can be counted toward the minimum requirement. The project also provides 12 unassigned surface parking spaces, where a minimum of 18 spaces (0.5 unassigned spaces are required per unit) are required. The General Plan also noted that reduced parking in Village Centers should be considered. The project provides a total of 65 code-compliant parking spaces, where 88 parking spaces are required. As this is a Village Center site, staff would support reduced residential parking as a deviation through the Special Development Permit. However, the State Density Bonus Law automatically allows reduced residential parking at a rate of 1.5 parking spaces for two and three-bedroom units, for a minimum of 53 parking spaces. The proposed project exceeds the minimum required under the State Density Bonus Law.
Landscaping and Tree Preservation, Removal, and Replacement
The project exceeds the minimum landscaped area requirement by providing 25% (19,704 square feet) of the lot for landscaping, where a minimum of 20% is required. The preliminary landscape plan includes plantings of trees, shrubs and ground cover along project periphery, street frontage and the central/paseo open space. The tree planting plan shows that the project will plant a total of 130, 24-inch box sized trees throughout the site, of which 17 screening trees will be located on the south property line (shared with single-family homes). The proposed plant palette for the screening trees includes Arbutus Marina, Prunus Caroliniana, Blueberry Tree, Sweet Bay, Brisbane Box, Yew Pine, and Water Gum. Staff has consulted with the City Arborist, who finds the trees to be appropriate for Sunnyvale’s climate.
As required for the similar project on the eastern portion of the shopping center, staff notes that detailed landscape plans be provided to ensure new tree plantings provide fast growing tree species that can grow under the power lines (recommended by PG&E). Staff has included Condition of Approval (PS-1 c) that requires a detailed landscape plan that will also include evergreen screening trees along the south property line.
An Arborist Report dated December 2020 was prepared by HortScience for the project. The report surveyed a total of 18 on-site trees, of which, four trees are deemed “protected” under SMC Chapter 19.94. A protected tree is defined as having a trunk size of at least 38 inches in circumference, as measured 4.5 feet from the ground. The proposed project includes removal of all four protected trees, which accounts for 22% of the total number of trees on the site. The trees along the site’s frontage on Sunnyvale-Saratoga are in poor condition. All of the protected trees proposed to be removed are in fair to poor condition and are not good candidates to be preserved, and/or are in conflict with the proposed site layout. The project saves two non-protected trees located on the site’s Fremont Avenue frontage.
Staff finds that the proposed removal of four protected trees is reasonable and that the project complies with the City’s Tree Replacement standards by providing 130 new 24-inch box trees throughout the site.
Fence/Walls
The existing site has two walls on its southern property line. It includes a new six and half foot-tall masonry wall on the subject site’s side and a second existing nine-foot-tall masonry wall on the residential side of the property developed with two-story single-family homes in 2011. Both walls meet SMC Section 19.37.040(b)(3) requirement of a 6-foot tall masonry wall between properties that include single-family homes. The proposal also includes a 6-foot tall wooden fence on the property lines shared with the gas station located at the corner of Fremont Avenue and Sunnyvale-Saratoga Road.
Green Building
The Green Building Program in effect at the time of the SB 330 Preliminary Application (March 2021) requires a minimum of 90 points on the GreenPoint Rated Checklist for the residential portion of the project. The applicant’s preliminary GreenPoint Rated checklist indicates 94-targeted points.
The existing commercial building that is being maintained is considered a new building based on the extent of exterior walls being removed. Since the subject building is less than 5,000 square feet in size, it is not subject to LEED requirements.
The project will comply with Sunnyvale’s Reach Code requirements (effective in January 2021), as the SB 330 Preliminary Application for the project was submitted in March 2021.
Stormwater Management
A preliminary Stormwater Management Plan (SWMP) has been submitted to show proposed drainage patterns and conceptual treatment techniques to minimize surface runoff and pollution. The project includes the use of pervious pavers throughout the site to help minimize runoff and meet storm water runoff standards. As per standard requirements, a detailed SWMP will be submitted, reviewed, and certified by a third-party during building permit phase of the project.
Below Market Rate Housing
The project will comply with the 12.5% below market rate (BMR) requirement, at the time the application was made in March 2021, by providing the required four BMR units and paying an in-lieu fee for the fractional unit (0.37).
Solid Waste and Recycling Enclosure and Access
The applicant’s proposed site plan shows a new commercial solid waste and recycling enclosure on the southern side of site near the commercial building to meet City standards (SMC Section 19.38.030). The trash enclosure will be made of concrete masonry unit (CMU) finish with a metal roof, which is compatible with the design of the proposed development. Staff’s recommended site plan would relocate the trash enclosure behind the rear of the commercial building. A detailed Solid Waste and Recycling Plan for the modified site plan is required (Condition of Approval PS-1 d iii).
The residential project will be served by individual carts that will be stored in the individual garages and staged outside in the driveways for pick-up.
Tentative Map
The Tentative Map calls for the subdivision of the existing lot into five lots and 35 condominiums. An HOA will ensure ongoing maintenance of common areas, the community gathering space (Paseo), surface parking, private walkways, private utilities, and public utilities.
Easements
There are three driveways that provide access to the property (two driveways on Sunnyvale-Saratoga Road and one from Fremont Avenue). See graphic below related to easements between the subject site and the adjacent site:
Easements
Prior to January 2022, there was an existing agreement created in 1958 for reciprocal easements between the subject property and adjoining two properties to the east (24-hr fitness and Jake’s) shown in red circles. The agreement created reciprocal easements for access, parking, and utility. The easement allowed for access at the driveway at Sunnyvale-Saratoga Road (Driveway #1), through the parking lot, and at the two interfaces with the eastern 24-hr fitness property (access locations shown with red circles). In February 2022, the 1958 agreement was voided and a new agreement between the property owners was recorded that re-established the existing access points (one on Sunnyvale-Saratoga (Driveway #1) and two access points to the 24-hr fitness property on the east property line of the subject site) and added two additional driveway access points (shown with blue circles): Driveway #2 to Sunnyvale-Saratoga Road and Driveway #3 to Fremont Avenue. As a result, there are now (3) total driveway access points being proposed (two on Sunnyvale-Saratoga Road, and one on Fremont Avenue). This new agreement was recorded prior to approval of the proposed site plan and after staff communicated removal of at least one driveway to the applicant and does not include reciprocal easement for parking. Staff has provided a recommended site plan to the applicant which removes Driveway #3. If Staff’s recommended site plan is approved, the now existing cross access easement will be maintained but the agreement will need to be modified to remove one access point from Driveway #3 (on Fremont Avenue). If the staff recommended site plan is not adopted, staff recommends a second alternative site plan which will keep the applicant’s current proposed building layout but removes Driveway #2 (second driveway on Sunnyvale-Saratoga Road). With either of these two options, the newly recorded agreement will require a small adjustment to accommodate the staff recommended revisions to the site layout.
The site is also required to provide additional right-of-way in the form of an easement on the Fremont Avenue frontage (1.48 to 1.52 feet) and along Sunnyvale-Saratoga Road frontage (3.2 to7.7feet). In addition, public utility easements, including storm drain, sanitary sewer, and utilities, are proposed to accommodate on-site utilities. The common open space will be covered by a public access easement to ensure that it remains open to public as proposed.
Neighborhood Compatibility
The proposed development is generally compatible with the surrounding residential and commercial uses and neighborhood character. The proposed site-layout with the commercial building located to the back results in minimal visibility from the street, which affects the commercial viability of this use and does not meet the vision of a Village Center as noted in the General Plan. Therefore, staff has recommended an alternate site plan that addresses these concerns (recommended site plan). The proposed project, as conditioned, generally complies with the prescribed development standards in the General Plan and Zoning and utilizes State Density Bonus law waivers and concessions to achieve the permitted density and desired product type. Residential building heights are four stories towards the middle of the site and generally tapers down to three stories along the project frontage on Fremont Avenue and rear property line. This taper provides for a more gradual transition to the adjacent residential properties to the south. As conditioned, the residential buildings will be located in the rear portion of the site and would have a setback of approximately 74 to 84 feet away from the adjacent residential properties to the south and would locate the commercial use closer to Fremont Avenue to provide easy access and increase its viability as a commercial use and be further away from the residential uses on the south side of the site. The transition of height and ample setbacks help to reduce potential visual and privacy impacts. Additionally, the project is conditioned to provide a detailed landscaping plan along the south property line to help provide additional screening.
Therefore, the project with the changes in the recommended site plan and as conditioned would be well-designed and compatible with the scale and character of the surrounding neighborhood.
Fiscal Impact
The project is subject to payment of a park in-lieu fee. School impact fees are also required to be paid to the Sunnyvale School District and Fremont Union High School District. Other standard fees and taxes apply.
Public Contact
Neighborhood Outreach Meeting: A virtual neighborhood outreach meeting was hosted by the applicant on April 8, 2021. The meeting was attended by 53 participants and their comments/questions related to the redevelopment of the site and the fate of the (then) existing Longhorn restaurant, impact on traffic, schools, and availability of on-site parking.
Planning Commission Study Session: Planning Commission reviewed the project’s site and architecture at their February 28, 2022, study session. Comments included the absence of a holistic redevelopment plan for the shopping center given the context of this project with approved project on the eastern portion and the remaining middle portion of the shopping center, units though accessible but not livable for people with disabilities, needed improvements to the shopping center, and support for the community garden and architectural style of the project.
Public Comments
Staff has received one written comment at the time that the staff report was written.
Notice of Public Hearings
• Published in the Sun newspaper
• Posted at the site
• 1,869, notices were mailed to property owners and tenants within 1,000 feet of the project as shown in Attachment 2
• Notices were sent to the 26 neighborhood associations and 14 interested parties.
Staff Report
• Posted on the City of Sunnyvale’s web site
• Provided at the Reference Section of the City of Sunnyvale’s Public Library
Agenda
• Posted on the City’s official notice bulletin board
• Posted on the City of Sunnyvale’s web site
ALTERNATIVES
1. Make the required Findings to approve the California Environmental Quality Act (CEQA) determination that the project is consistent with CEQA Guidelines Section 15183 and 15183.3 (Projects Consistent with a Community Plan, General Plan, or Zoning and Streamlining for Infill Projects) as noted in checklist (Attachment 6), approve the Special Development Permit and the Tentative Map subject to the Recommended Findings in Attachment 3 and subject to the Recommended Conditions of Approval in Attachment 4.
2. Make the required Findings to approve the California Environmental Quality Act (CEQA) determination that the project is consistent with CEQA Guidelines Section 15183 and 15183.3 (Projects Consistent with a Community Plan, General Plan, or Zoning and Streamlining for Infill Projects) as noted in checklist (Attachment 6), approve the Special Development Permit and the Tentative Map subject to the Recommended Findings in Attachment 3 and subject to the Recommended Conditions of Approval in Attachment 5.
3. Alternative 1 or Alternative 2 with modifications.
4. Do not make the required findings and direct staff where changes should be made.
5. Deny the project.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Make the required Findings to approve the California Environmental Quality Act (CEQA) determination that the project is consistent with CEQA Guidelines Section 15183 and 15183.3 (Projects Consistent with a Community Plan, General Plan, or Zoning and Streamlining for Infill Projects) as noted in checklist (Attachment 6), approve the Special Development Permit and the Tentative Map subject to the Recommended Findings in Attachment 3 and subject to the Recommended Conditions of Approval in Attachment 4.
JUSTIFICATION FOR RECOMMENDATION
Staff finds that the recommended site plan to relocate the commercial building to the Fremont Avenue frontage achieves the goal to provided much-needed housing while also meeting the intent of the General Plan to create a distinctive focal element and conveniently located retail at this Village Center. The recommended site plan also removes a driveway on Fremont Avenue, which also addresses the concern about traffic safety related to too many driveways near this busy intersection.
Staff
Prepared by: Shétal Divatia, Senior Planner
Reviewed by: Noren Caliva-Lepe, Principal Planner
Reviewed by: Shaunn Mendrin, Planning Officer
Reviewed by: Trudi Ryan, Director of Community Development
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Noticing and Vicinity Map
2. Project Data Table
3. Recommended Findings
4. Recommended Conditions of Approval for Staff Recommended Site Plan
5. Recommended Conditions of Approval for Applicant Proposed Site Plan
6. CEQA - Section 15183 - Infill Development Provision Checklist
7. DPW Memo dated 4/29/2022 (Driveway Closure)
8. Letter from Applicant - Justification for waivers and incentive/concessions
9. Project Plans and Views
10. Recommended Site Plan
11. LUTE EIR Links
12. Public Comment Letter