REPORT TO PLANNING COMMISSION
SUBJECT
Title
Proposed Project: Related applications on a 3.56-acre site:
SPECIAL DEVELOPMENT PERMIT: to modify Conditions of Approval for file #2018-7798 to allow the option of a Below Market Rate Alternative Compliance Plan. There will be no net change in proposed units and the proposed structures. This will just be for a map to allow sale of the units.
VESTING TENTATIVE MAP: to create condominium units to allow the sale of individual units in the mixed-use building. The total number of units would maintain the same as shown in file #2018-7798: one Commercial Condominium unit, 111 Residential Condominium units, and five single-family lots.
Location: 1104 and 1124 W El Camino Real (APN: 198-17-023 and 198-17-029, respectively)
File #: PLNG-2025-0375
Zoning: ECR-MU33 (El Camino Real - Mixed Use)
Applicant / Owner: Jennifer Tersigni / P Brinkman Fam
Environmental Review: No additional review required as per CEQA Guidelines 15168(c)(2) and (4) – environmental impacts of the project are addressed in the El Camino Real Specific Plan (ECRSP) Environmental Impact Report (EIR).
Project Planner: Julia Klein, 408-730-7463, jklein@sunnyvale.ca.gov
Report
REPORT IN BRIEF
General Plan: El Camino Real Specific Plan.
Existing Site Conditions: a two-story office/garage building, two one-story garage buildings, and surface parking.
Surrounding Land Uses
North: shopping center (restaurants, personal services) across El Camino Real.
South: single-family neighborhood.
East: shopping center (restaurants, personal services) immediately adjacent and automotive uses east of Grape Avenue.
West: restaurant; auto sales.
Issues: change in conditions of approval and new vesting tentative map.
Staff Recommendation: Alternative 1. Make the required findings to approve the CEQA determination that the project is consistent with the ECRSP EIR and no additional environmental review is required pursuant to CEQA Guidelines Section 15183; and approve the Special Development Permit modification and new Vesting Tentative Map based on the Recommended Findings in Attachment 3 and Conditions of Approval #GC-8 as modified (refer to Discussion section above).
BACKGROUND
Description of Proposed Project
The site is 3.56 acres in size and is currently developed with an auto dealer use, comprised of a two-story office/garage building, two one-story garage buildings, and surface parking.
On August 12, 2024, the Planning Commission approved redevelopment of the site through Planning File #2018-7798. The approved development consists of demolishing all existing buildings on site (totaling 25,232 square feet) and constructing a new seven-story mixed-use building along the frontages of El Camino Real and Grape Avenue along with five single-family lots in the rear of the site. The development would include a mixed-use building with 31,361 square feet of ground and second floor commercial/retail space, 111 multifamily residential units on the third through seventh floors, and five two-story with a basement detached single-family homes with two-car garages on individual lots.
See Attachment 1 for a map of the vicinity and mailing area for notices, Attachment 3 for the proposed Vesting Tentative Map, and refer to Attachment 4 for the link to the August 12, 2024 Planning Commission public hearing for the development plans.
Special Development Permit
The project site is in the El Camino Real Specific Plan (ECRSP) area and in the El Camino Real - Mixed Use (ECR-MU33) zoning district, which allows for residential mixed-use development with a base maximum density of 33 dwelling units per acre (du/ac). The zoning also requires ground floor commercial uses, including auto sales/rental, retail, restaurant, and personal service uses. The site is in the “Bernardo Gateway Node” within the ECRSP, intended for high-density, multi-use community focal points where residents and visitors can shop, dine, and access transit. Redevelopment of the site was approved by the Planning Commission in 2024. Major changes to approved plans or approved Conditions of Approval are required to be reviewed by the Planning Commission. See the Discussion section below for proposed changes.
Vesting Tentative Map
A Tentative Map is required prior to recording a Final Map to establish new lots and condominium spaces. The Planning Commission approval in 2024 approved a Vesting Tentative Map for the creation of six lots, five for the single-family lots at the rear of the site and a single lot for the remainder. Changes to the Vesting Tentative Map requires another approval of a new Vesting Tentative Map. See the Discussion section below for proposed changes.
Previous Actions on the Site
The site was developed as a new and used auto sales/service use in 1964, with various changes up to 1997. The site was designated in the Precise Plan for El Camino Real in 1993 and updated in 2007. The El Camino Real Specific Plan (ECRSP) was most recently adopted in 2022. Adoption of the ECRSP in 2022 included rezoning the site from C-2 (Highway Business) to ECR-MU33 (El Camino Real - Mixed Use).
The Planning Commission approved a Special Development Permit and Vesting Tentative Map (Planning File #2018-7798). The approval included demolition of all existing buildings on site (totaling 25,232 square feet), construction of a new seven-story mixed-use building along the street frontages (El Camino Real and Grape Avenue), five single-family homes, associated site improvements, and a Vesting Tentative Map for the creation of 6 lots on the site. The mixed-use building includes 31,361 square feet of ground and second floor commercial/retail space, 111 multifamily residential units on the third through seventh floors, and five two-story (with basements) detached single-family homes with two-car garages.
DISCUSSION
The approval in 2024 had 111 rental units in the mixed-use building. The applicant is now proposing to keep the same number of units, but to create the option for the units to be for sale. In order to do this, a new Vesting Tentative Map that creates condominium spaces for the units in the mixed-use building is required to be reviewed by the Planning Commission (see new Vesting Tentative Map in Attachment 3). The new Vesting Tentative Map would be subject to current Below Market Rate (BMR) requirements, requiring 15% of the units to affordable in the mixed-use building. The applicant has indicated that they would like the City to consider a Below Market Rate Alternative Compliance Plan for the project by paying an in-lieu fee for the required BMR units rather than providing them onsite. This fee would go into the Housing and Mitigation Fund and may be used to fund other affordable housing developments or services in the City. The Alternative Compliance Plan is subject to review by the Housing and Human Services Commission and the City Council, and is not before the Planning Commission for a recommendation or action.
One of the 2024 approved Conditions of Approval in Planning File #2018-7798 would need to be modified to include language to allow the option for an Alternative Compliance Plan. Specifically, condition #GC-8 (Below Market Rate Program/Condo Conversion). The approved condition (shown in strikethrough) and proposed modification (shown in underline) are noted below.
• Approved Condition of Approval - Planning File #2018-7798
GC-8. BELOW MARKET RATE PROGRAM/CONDO CONVERSION:
Any future conversion of this apartment project into seven or more condominium units for sale to individual home buyers will require compliance with SMC 19.67, Below Market Rate Ownership Housing, including the requirement to enter into a BMR Developer Agreement to provide BMR units, as well as compliance with SMC 19.70, regarding condominium conversion. [SDR] [PLANNING]
(Refer to Attachment 4 for link to the Conditions of Approval from Planning File #2018-7798)
• Proposed Modification
GC-8. BELOW MARKET RATE PROGRAM:
The development project is subject to Below Market Rate program requirements as follows:
a. For any portion of the mixed-use building that is held or operated as a rental housing unit, the developer shall submit documentation to the City demonstrating compliance with Sunnyvale Municipal Code (SMC) Chapter 19.77 Inclusionary Below Market Rate Rental Housing.
b. For any portion of the project (including the mixed-use building and detached single-family residences) that is designated as a for-sale housing unit, the developer shall submit documentation to the City demonstrating compliance with SMC Chapter 19.67 Below Market Rate Ownership Housing.
c. If the developer seeks flexibility in meeting the Below Market Rate requirements under the SMC through subsequent submittal of Planning Application for a Below Market Rate Alternative Compliance Plan, the Alternative Compliance Plan shall be subject to review and recommendation of the Housing and Human Services Commission and consideration by the City Council for approval or denial. The developer shall comply with the Alternative Compliance Plan, as approved by the City Council, and prior to issuance of the first building permit for the project, enter into and record a Developer Agreement consistent with the Alternative Compliance Plan and in a form approved by the City Attorney.
[COA][PLANNING, HOUSING, CITY ATTORNEY]
Should the Planning Commission approve the new Vesting Tentative Map to allow residential condominium spaces in the mixed-use building, approval would also include the modified condition (GC-8) as proposed above. Staff would issue a new set of Final Conditions of Approval for the Special Development Permit and the new Vesting Tentative Map would supersede the previous one from 2024. As noted previously, this change in the map and condition does not change the size, density or site plan of the previously approved application, Planning File #2018-7798.
ENVIRONMENTAL REVIEW
A Program-level Environmental Impact Report (EIR) was prepared for the overall ECRSP (State Clearinghouse No. 2017102082) per the California Environmental Quality Act (CEQA), which was certified by the City Council on June 20, 2022, and identified broad environmental impacts resulting from the proposed development intensities. Certification of the El Camino Real Specific Plan (ECRSP) EIR included a mitigation monitoring program (MMRP) with provisions to reduce the potentially significant impacts to a less than significant level, although some impacts of the ECRSP were significant and unavoidable after mitigation. A Statement of Overriding Considerations was also adopted in conjunction with the ECRSP in acknowledgment of the presence of the remaining significant and unavoidable impacts. The ECRSP MMRP has been incorporated into the Conditions of Approval for Planning File#2018-7798.
As part of Planning File #2018-7798, the City’s consultant, Michael Baker International, prepared an environmental checklist to determine whether the environmental impacts of the proposed project are within the scope of the ECRSP EIR, or if changed environmental conditions result in new or substantially more severe environmental impacts, as compared to those considered in the ECRSP EIR. The checklist also considered whether there is new information of substantial importance showing that new or substantially more severe environmental impacts would occur compared to that evaluated in the ECRSP EIR. Review of the checklist confirmed the project is consistent with the certified ECRSP EIR analyses and did not reveal new impacts that warranted further environmental review pursuant to Section 15183 of the CEQA Guidelines (consistency with the General Plan; the ECR SP is considered part of the General Plan).
The current project (File No. PLNG-2025-0375) is limited to a change in the Conditions of Approval and a new Vesting Tentative Map to allow the sale of units in the mixed-use building. Staff review confirmed the project is consistent with the certified ECRSP EIR analyses and did not reveal new impacts that warranted further environmental review pursuant to Section 15183 of the CEQA Guidelines (consistency with the General Plan; the ECR SP is considered part of the General Plan). Therefore, staff finds that the environmental impacts of the project are addressed in the ECRSP EIR and that no additional review is required per CEQA Guidelines Section 15183. The existing EIR documents can be found on the ECRSP webpage in Attachment 7.
Fiscal Impact
No fiscal impacts other than standard fees and taxes are expected. The project will be subject to additional fees including Park In-Lieu fee, Housing Impact Fee (and as modified through the Alternative Compliance Plan), Transportation Impact Fee, ECRSP-Specific Transportation Impact Fee, ECRSP Plan Maintenance Fee, and School Impact fees as noted in the Conditions of Approval for the original development (Planning File # 2018-7798).
Public Contact
Public contact was made by posting the Planning Commission meeting agenda on the City's official-notice bulletin board at City Hall. 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.
3590 notices were sent to surrounding property owners and residents adjacent to the subject site in addition to standard noticing practices, including advertisement in the Sunnyvale Sun Newspaper and on-site posting.
Staff received public comments expressing opposition that had been approved on August 12, 2024. The concerns relate to massing/size of the development, the number of units and the resulting increase in traffic, see Attachment 8 for the public comments. Staff explained the limitations in the scope of the current Planning permit and that it is not possible to reduce the number of units or make other any other physical changes to the previously entitled project.
ALTERNATIVES
1. Make the required findings to approve the CEQA determination that the project is consistent with the ECRSP EIR and no additional environmental review is required pursuant to CEQA Guidelines Section 15183; and approve the Special Development Permit modification and new Vesting Tentative Map based on the Recommended Findings in Attachment 3 and Conditions of Approval #GC-8 as modified (refer to Discussion section above).
2. Make the required findings to approve the CEQA determination that the project is consistent with the ECRSP EIR and no additional environmental review is required pursuant to CEQA Guidelines Section 15183 and approve the Special Development Permit modification and new Vesting Tentative Map with modifications to the Recommended Findings and/or Conditions of Approval (provided by Planning Commission).
3. Do not make the required Findings and direct staff where changes should be made.
STAFF RECOMMENDATION
Recommendation
Alternative 1. Make the required findings to approve the CEQA determination that the project is consistent with the ECRSP EIR and no additional environmental review is required pursuant to CEQA Guidelines Section 15183; and approve the Special Development Permit modification and new Vesting Tentative Map based on the Recommended Findings in Attachment 3 and Conditions of Approval #GC-8 as modified (refer to Discussion section above).
JUSTIFICATION FOR RECOMMENDATION
The proposed project furthers the goals and objectives of the General Plan and ECRSP by providing high-density residential housing, five new single-family homes/lots, and a net gain of commercial area over existing levels along the El Camino Real corridor. The applicant’s request for flexibility in rental and sale units is reasonable in light of current restrictions in financing and loans. Approval of the current application would not result in physical changes to the previously approved development, approved by the Planning Commission on August 12, 2024. No new significant environmental impacts would occur with implementation of the project and all approved mitigation in the ECRSP EIR would continue to be implemented.
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: Julia Klein, Principal Planner
Approved by: Shaunn Mendrin, Planning Officer
ATTACHMENTS
1. Vicinity and Noticing Radius Map
2. Recommended Findings
3. Vesting Tentative Map
4. Link to Planning Commission Meeting of 8/12/2024
5. Link to Conditions of Approval for Planning File #2018-7798
6. Link to Housing and Human Services Commission Meeting of 6/25/2025
7. Link to El Camino Real Specific Plan Environmental Impact Report
8. Public Comments