REPORT TO PLANNING COMMISSION
SUBJECT
Title
1154 Sonora Court (1154 Site)
Proposed Project: Related applications on a 1.88-acre site:
SPECIAL DEVELOPMENT PERMIT: to demolish the existing 33,055 square foot one-story industrial building and construct a seven-story mixed-use building with 173 apartments, 142,270 square feet of office/R&D space, and two levels of below-grade parking.
VESTING TENTATIVE PARCEL MAP: to allow creation of five commercial condominiums in the office/R&D space.
Location: 1154 Sonora Court (APN: 205-50-016)
File #: 2022-7270
1170 Sonora Court (1170 Site)
Proposed Project: Related applications on a 1.09-acre site:
SPECIAL DEVELOPMENT PERMIT: to demolish the existing 14,902 square foot one-story industrial building and construct a seven-story mixed-use building with 107 apartments, 79,211 square feet of office/R&D space, 377 square feet of retail space, and two levels of below-grade parking.
VESTING TENTATIVE PARCEL MAP: to allow creation of six commercial condominiums in the office/R&D space.
Location: 1170 Sonora Court (APN: 205-50-014)
File #: 2022-7271
1154 and 1170 Sonora Court
DEVELOPMENT AGREEMENT: Introduction of an Ordinance approving and adopting a Development Agreement between the City of Sunnyvale and SKS Partners.
Zoning: MXD-I/S (Flexible Mixed-Use I/Sonora Court)
Applicant / Owner: SKS Partners (applicant/developer)/ A&F Properties, LLC (owner)
Environmental Review: No additional review required pursuant to California Environmental Quality Act (CEQA) Guidelines 15162 and 15168(c)(2) and (4) - environmental impacts of the project are addressed in the 2016 Lawrence Station Area Plan Environmental Impact Report (EIR - State Clearinghouse No. 2013082030) and 2021 Lawrence Station Area Plan Update/Intuitive Surgical Corporate Campus Project Subsequent Environmental Impact Report (SEIR - State Clearinghouse No. 2019012022).
Project Planner: Aastha Vashist, (408) 730-7458, avashist@sunnyvale.ca.gov
Report
REPORT IN BRIEF
General Plan: Transit Mixed Use (TMU); Lawrence Station Area Plan (LSAP)
Existing Site Conditions: One-story industrial buildings
Surrounding Land Uses:
North: One-story industrial buildings across Sonora Court
South: 1154 Sonora Ct: Caltrain rail tracks
1170 Sonora Ct: Lawrence Caltrain Station and rail tracks
East: One-story industrial building (proposed affordable housing site)
West: One-story industrial building
Issues: Compliance with LSAP guidelines and State Density Bonus waivers/incentive.
Staff Recommendation:
1. Make the findings in Attachment 2 required by Resolution No. 371-81 for a Development Agreement
2. Recommend that the City Council for 1154 and 1170 Sonora Court:
• Make the required findings to approve the CEQA determination that the projects are consistent with the 2016 LSAP EIR and 2021 LSAP Update SEIR and no additional environmental review is required;
• Approve the Special Development Permits based on Recommended Findings in Attachments 6 and 7 and Recommended Conditions of Approval in Attachments 8 and 9; and
• Introduce an Ordinance approving and adopting a Development Agreement between the City of Sunnyvale and SKS Partners.
BACKGROUND
Description of Proposed Project
The project consists of redeveloping two sites north of the Caltrain tracks and station, including a 1.88-acre lot at 1154 Sonora Court and a 1.09-acre lot at 1170 Sonora Court.
In total, the proposed development involves demolishing the existing structures and constructing 280 rental apartments, 221,481 square feet of office area, two levels of below-grade parking for each site and related on-site and off-site improvements. The proposed seven-story building at 1154 Sonora Court is referred to as 1154 Site, while the seven-story building at 1170 Sonora Court is referred to as 1170 Site.
Additionally, both projects include a total of 46 Below Market Rate (BMR) units, which qualifies for reduced parking and consideration of concessions, waivers, and incentives under the California Density Bonus Law. The project details for each site are as follows:
• 1154 Sonora Court (1154 Site): The 1.88-acre interior lot is currently developed with a 33,055-square-foot one-story industrial building and surface parking area. The proposed development consists of the demolition of the existing industrial building and construction of a seven-story building with two levels of below-grade parking, totaling 142,270 square feet of office/ R&D area, resulting in a 173% nonresidential Floor Area Ratio (FAR) and 173 apartments, including 28 BMR units.
• 1170 Sonora Court (1170 Site): The 1.09-acre interior lot north of Lawrence Caltrain Station includes a 14,902 square feet one-story industrial building and surface parking area. The proposed development consists of demolishing the existing industrial building and constructing a seven-story building with two levels of below-grade parking, totaling 79,211 square feet of office/R&D area, resulting in 167% nonresidential FAR and 107 apartments, including 18 BMR units.
Special Development Permit (SDP) and Vesting Tentative Parcel Map
A Special Development Permit (SDP) is required for new construction of permitted uses in the Lawrence Station Area Plan (LSAP). The SDP is required to confirm that the projects’ site and architectural design will implement the provisions of the LSAP. A SDP allows for consideration of deviations from specified development standards in exchange for superior design, environmental preservation, or public development. A Vesting Tentative Parcel Map is required to create commercial condominiums and vests the development standards to the time of tentative map approval. The applicants are proposing to create six commercial condominiums at the 1154 Site and five at the 1170 Site.
SDPs and Vesting Tentative Parcel Maps are typically only reviewed by the Planning Commission. However, the project must also be reviewed at a City Council hearing because of the proposed Development Agreement (DA) included in the application. The Recommended Conditions of Approval are included in Attachment 8 (1154 Sonora Ct) and Attachment 9 (1170 Sonora Ct).
Development Agreement
The LSAP requires a DA for office/R&D/industrial development above the base maximum FAR of 35% (or 45% with green building bonus) up to a maximum of 150% FAR. The applicant is also requesting a California Density Bonus incentive/concession to exceed the maximum FAR. Development above the base maximum FAR requires the applicant to provide Community Benefits, per the LSAP, as negotiated as part of a DA, which may include incentives from the LSAP Development Incentives Program.
This item is scheduled for City Council consideration on November 28, 2023.
State Housing Legislation
The applicant is utilizing the California Density Bonus Law. Furthermore, the projects are utilizing Assembly Bill (AB) 2097, which prohibits mandating minimum automobile parking requirements for residential and commercial uses within a half-mile distance of a major transit stop. These projects qualify for this exemption due to their proximity to Lawrence Caltrain Station and are not subject to the LSAP minimum automobile parking requirements.
The California Density Bonus Law (Government Code Section 65915) was created to incentivize the construction of affordable units and applies to housing projects that provide at least 10% of units as affordable to moderate-income households. By delivering 28 units (around 24% of the base maximum) at the 1154 Site and 18 units (approximately 25% of the base maximum) at the 1170 Site, the applicant is entitled to the following benefits under the Density Bonus Law:
Previous Actions on the Site
The sites were originally developed with one-story industrial buildings built in the 1970s. Recent planning permits include tree removal permits, exterior storage, signage, and special event permits. There has been redevelopment activity on Sonora Court following the adoption of the LSAP. In November 2021, the Planning Commission approved a SDP (Planning permit # 2020-7393) to allow the construction of a seven-story, 176-unit affordable housing development (174 affordable units plus two managers’ units).
Both subject sites have been in the LSAP since its original 2016 adoption. Upon initial LSAP adoption, the sites were rezoned from M-S (Industrial and Service) to MXD-I (Flexible Mixed-Use I), which allows a flexible mix of uses, including residential, office/R&D, and retail. The allowable residential density at the time was a minimum of 36 dwelling units per acre (du/ac), maximum of 45 du/ac, and maximum of 68 du/ac with inclusion of development incentives. The allowable office/R&D/industrial FAR was 35% minimum, 45% maximum, and up to 150% maximum with development incentives. The height limit was 85 feet.
The 2021 LSAP Update involved creating a new zoning designation of MXD-I/S (Flexible Mixed-Use I, Sonora Court) for Sonora Court properties, due to their direct proximity to the Lawrence Caltrain Station and smaller parcel sizes. As a result, all Sonora Court properties were rezoned from MXD-I to MXD-I/S. The allowable residential density was revised to a base maximum of 54 du/ac with 26 available density incentive points. The allowable office/R&D/industrial FAR largely remained the same but was clarified to have a base maximum non-retail FAR of 35% and a maximum of 150% FAR with incentives. A requirement for a DA was included to consider additional office/R&D/industrial FAR above the base maximum (or additional FAR achieved through participation in the City’s Green Building Program). The height limit also increased to 100 feet.
EXISTING POLICY
General Plan Goals and Policies: A complete list of goals and policies from the Land Use and Transportation Chapter and other elements of the General Plan which pertain to the proposed project are in the Recommended Findings in Attachments 6 and 5.
LSAP Goals, Policies, and Design Guidelines: A complete list of goals, policies, and design guidelines from the Lawrence Station Area Plan that pertain to the proposed project are also in Attachments 4 and 5. The applicable LSAP objective design guidelines are discussed later in the report.
ENVIRONMENTAL REVIEW
A Program-level EIR was prepared for the overall LSAP (State Clearinghouse No. 2013082030) upon original adoption in 2016 pursuant to the California Environmental Quality Act (CEQA), which identified broad environmental impacts resulting from the proposed development intensities. Certification of the 2016 LSAP 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 LSAP were significant and unavoidable after mitigation (air quality and traffic). A Statement of Overriding Considerations was adopted in conjunction with the 2016 LSAP in acknowledgment of the presence of the remaining significant and unavoidable impacts. The City updated the LSAP in 2021 to include additional housing potential and a boundary expansion and prepared a Draft and Final Subsequent EIR (SEIR) (State Clearinghouse No. 2019012022). The SEIR included a program-level analysis of the LSAP amendments and included an updated MMRP and Statement of Overriding Considerations for air quality and wastewater impacts. The LSAP MMRP has been incorporated into the Recommended Conditions of Approval in Attachments 8 and 9.
The City’s consultant, Ascent Environmental, prepared an environmental checklist for each site (Attachments 12 and 13) to determine whether the environmental impacts of the proposed project are within the scope of the 2016 LSAP EIR and 2021 LSAP Update SEIR, or if changed environmental conditions result in new or substantially more severe environmental impacts, as compared to those considered in the LSAP EIR’s. 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 LSAP EIRs. Several technical studies were prepared to analyze site and project-specific environmental conditions, such as a noise study, Phase I environmental site assessments, a geotechnical investigation, biological study, archaeological study, and arborist report.
Review of the project, including technical studies, confirmed the overall project is consistent with the certified LSAP EIR analyses and did not reveal new impacts that warranted further environmental review pursuant to Section 15162 and 15168 of the CEQA Guidelines. Therefore, staff finds that the environmental impacts of the project are addressed in the 2016 LSAP EIR and 2021 LSAP Update SEIR and no additional review is required as per CEQA Guidelines 15162 and 15168(c)(2) and (4). The existing EIR documents can be found on the LSAP webpage (see Attachment 17 for link).
DISCUSSION
Present Site Conditions
The project sites are situated within the neighborhood north of the Caltrain railroad tracks, characterized by rectangular parcels averaging 1.2 acres in area, and developed with one-story industrial buildings from the 1970s. Mature redwood and cedar trees create a distinctive environment along Sonora Court.
The sites are not contiguous and are separated by the property at 1162 Sonora Court. The 1.09-acre site at 1170 Sonora Court is located north of the Lawrence Caltrain Station. Access to each site is through two driveways along each of the respective side property lines.
Site Design and Layout
Both developments have a similar site layout consisting of a seven-story building with a 26-foot-wide driveway along the western property lines. The driveways will provide vehicular access to the service areas and ramps leading to the below-grade parking levels. Decorative pavers will highlight pedestrian crossings along the driveways. Furthermore, a new six-foot wide public sidewalk will provide pedestrian access to the office and residential lobbies, seating decks, bike racks, and entry deck along the street frontage. Private pedestrian walkways would provide direct connections from the public sidewalk to the entry courts.
The ground floor of each site is comprised of office and service areas, separate residential and office lobbies, and bicycle storage. Office uses will be located on the second and third floors. Residential uses are on the fourth to seventh floors and include a mix of studios, one-bedroom, and two-bedroom residential units. Each unit has access to an individual lockable storage space pursuant to Sunnyvale Municipal Code (SMC) requirements. The applicants propose eight-foot-tall concrete masonry unit (CMU) walls adjacent to the rail tracks along the south property lines and eight-foot-tall grated-aluminum fences along the side property lines.
1154 Site: In addition to the parking access driveway on the west property line, the 1154 Site will also be served by 26-foot-wide Emergency Vehicle Access (EVA) along the east property line. The site includes five common usable open areas, including two landscaped courtyards for office users on the ground floor level. There are two common functional open spaces on the fourth floor and a 1,640-square-foot clubhouse for residents of the development. Additionally, the applicant proposes usable open space on the southeast corner of the site and additional landscaping along the site perimeter.
The proposed unit mix includes 54 studios, 68 one-bedroom, and 51 two-bedroom units. The average size varies, ranging from 475 square feet for studios, 730 square feet for one-bedroom units, and 1,070 square feet for two-bedroom units. Above the third-floor level, the building is divided into two distinct towers connected by exterior corridors.
1170 Site: Consistent with the LSAP’s primary goal of enhancing circulation and connectivity for all modes of travel, the project proposes a ten-foot wide publicly accessible pedestrian walkway along the property's eastern edge. This walkway will provide a critical pedestrian connection between Sonora Court and the Lawrence Caltrain Station. The walkway will be bordered by office area with distinctive angled walls and glazed windows, culminating in an approximately 377-square-foot retail space at the southeast corner of the building. This space is designed to be accessible to pedestrians including transit users, contributing towards energizing the station area. This feature is part of the project’s Community Benefits, outlined in the Development Agreement.
The connection to the rear Caltrain property includes improvements that consist of installing a raised crosswalk in the Caltrain parking lot with associated striping and signage, the relocation of a storage locker, and accessibility upgrades between the property and the Caltrain station platform. Additionally, the applicants propose a security gate at the end of the walkway, which will be operated by building management and remain accessible to the public during Caltrain operating hours.
The Peninsula Corridor Joint Powers Board (JPB) expressed its full support for the proposed connection and improvements to their property (Attachment 20). The letter commended the upgrades for their potential to enhance station accessibility, increase transit ridership, and provide a more convenient mode of transportation for workers and residents.
Staff has included a condition of approval that requires the applicant to obtain the necessary permits to carry out the proposed improvements on JPB's property and establish a Public Access Easement (PAE) for the walkway (Condition BP-9 and PM-5, Attachment 9).
The design includes four common usable open areas. For office users, three open spaces are proposed on the third floor. The largest terrace area is prominently located along the street frontage, and two smaller terraces are proposed along the west and southeast corners of the building. The project includes usable open space for residents, oriented towards the street, and a 1,125-square-foot resident clubhouse on the fourth floor. Additional landscaping is proposed along the site perimeter.
The project includes 31 studio, 48 one-bedroom, and 28 two-bedroom residential units. The average unit size varies, ranging from 470 square feet for studios, 740 square feet for one-bedroom units, and 1,035 square feet for two-bedroom units. Above the third- floor level, a portion of the building steps back to create a U-shape with interconnecting exterior corridors on the fifth, sixth and seventh floor.
Architecture
The buildings have a similar contemporary architectural style with rectangular forms, building insets, angled walls, and high-quality materials. In alignment with the City’s Bird Safe Design Guidelines, the projects incorporate appropriate bird-safe treatment for glazing.
1154 Site (1154 Sonora Ct): A distinctive building base, middle, and top characterize the proposed contemporary architectural style. The building base is well-defined by a combination of brick veneer and clear exterior glazing, while the middle portion of the building features projecting balconies, glazing, and cementitious panels. The stepped-back upper floor level with random batten siding finish and roof overhang with composite wood soffit further help define the building top and add depth, shadow, and architectural interest along the street façade. A notable design focal point is the seven-story, brick-veneer-clad tower element with angled walls along the northeast corner of the street facade.
The architecture maintains consistent design and detailing along all the facades through wall plane changes, materials, and balconies to help break the building façade. A recessed entry plaza, canopy, and double-height lobby help in clearly defining the entrances along the street facade. A continuous base of brick and glass window wall defines the rear elevation facing the Caltrain tracks.
1170 Site (1170 Sonora Ct): Similar to the 1154 Site’s design, the proposed architectural style features a distinct building base, middle, and top. A combination of brick veneer and glazing defines the two-story building base. The building's middle features an aluminum window wall with bird-safe glazing at the corners. The top floor is stepped back and finished with dark grey batten cement siding and roof overhang.
The entrances to the residential and office lobbies face the street and are clearly defined by entry porch elements, changes in materials, and a recessed entry deck. Consistent with LSAP design standards, the retail space on the southeast corner of the building includes glazing on both facades and is set back by around five feet to create architectural definition and interest.
All building facades feature vertical modules through material variations, wall projections, recesses, and balconies. A vital feature of the proposed design is the inclusion of angled walls and balconies along the side elevations. The rear elevation features open corridors from the fourth to the seventh floor, finished with green-colored stucco walls and decorative perforated metal screens.
LSAP Design Standards: The LSAP includes objective design guidelines for new development within the plan area. Both buildings do not meet several LSAP objective design guidelines in their entirety.
The objective guidelines that the applicant is requesting deviations from are as follows:
1. Vertical Building Modulation per LSAP guideline BMA-UDG1.
• Each side of the building contains vertical modules but does not meet the 15-foot wide by five-foot deep criteria.
2. Horizontal Building Modulation per LSAP guideline BMA-UDG4.
• Every 175 linear feet of the façade does not have a minimum wall recess/opening of at least 15 feet wide by 15 feet deep. (1170 Site is not subject to the standard as the facades are less than 175 feet long).
3. Reduced Floor Plate Sizes above 75 feet per LSAP guideline RB-UDG6.
• The building floor plate above 75 feet is not reduced in length by a minimum of 10% from the floor below.
4. 18 feet height for retail spaces per LSAP guideline BO-UDG9 (Only applicable to 1170 Site).
• 1170 Site’s retail space is proposed at 14 feet high.
Staff finds that the proposed projects align with the intent of the LSAP objective design guidelines even though they do not meet the objective standard. Vertical and horizontal modulation is achieved through material changes, wall plane changes, balconies, and vertical glazing. Furthermore, a combination of angles, walls, and plane changes visually break longer façades into smaller sections. The apparent visual mass of the upper floors is minimized through material variations, recesses, and roof overhangs. The 1170 Site’s retail space visually stands out with a distinctive design that combines accent colors, glazing, wall recesses, and angled walls; also as a small space the taller space would feel out of proportion.
The LSAP allows consideration of deviations to its design guidelines on a case-by-case basis by the decision-making body, through the SDP. Staff finds the proposed projects to be well-designed and consistent with the LSAP’s development vision. This is achieved by utilizing high-quality materials, details, and varying urban and pedestrian-scale elements. See Attachments 8 and 9 for site and architectural plans.
Development Standards
Aside from the requested state density bonus waivers, the project complies with zoning standards including, but not limited to, lot coverage, open space, building height, property line setbacks, and individual lockable storage. The Project Data Table for both projects, in Attachment 5, summarizes the project’s compliance with development standards.
Residential Density and LSAP Incentive Program
Density
The proposed density is 92 du/ac for the 1154 Site and 98 du/ac for the 1170 Site, which is achieved through participation in the LSAP Development Incentives Program and the California Density Bonus Law.
The 1154 Site achieves seven LSAP density points by providing over 85% of the project’s auto parking supply at below-grade levels. The 1170 Site achieves 11 LSAP density points by providing the following incentives:
• Bicycle repair station (2 points)
• Street furniture for public use (2 points)
• Over 85% auto parking at below-grade level (7 points)
Including the incentive points, the base maximum density of 54 du/ac is increased to 61 du/ac for the 1154 Site and 65 du/ac for the 1170 Site. Additionally, pursuant to California State Density Bonus Law (Government Code Section 65915 (f)(1)), the project is entitled to a 50% State Density Bonus over the base maximum density due to the provision of 25% low-income units.
The LSAP Development Incentives Program includes examples of calculating residential densities and allowable units. The base maximum density is the starting point for where density bonuses are added. The top row of the table below starts at the base maximum density, then increases in each lower row depending on the LSAP incentives and State Density Bonus achieved.
1 The City’s affordable housing requirement is based on the number of units proposed under this provision.
With participation in the LSAP Development Incentives Program and State Density Bonus, the allowable density is 92 du/ac or 173 allowable units for the 1154 Site and 98 du/ac or 107 allowable units for the 1170 Site (note that density bonuses round up to a whole number). Therefore, the proposed density is deemed consistent with the LSAP. The same total number of housing units could be achieved if more LSAP incentives were utilized; however, that approach would result in five fewer affordable units. The proposed project, per the DA, will include additional incentive features such as a bike repair station, street furniture for public use, wayfinding signage, and public bike parking; the incentive features in the DA, if they had been a part of the project, could have produced the same total unit count, but with five fewer affordable units.
LSAP Development Incentive Program
The LSAP Development Incentive Program allows property owners to develop their properties beyond the base maximum densities in exchange for providing community benefits that advance the goals of the LSAP. The program is voluntary, and property owners have the option to propose the incentives that best suit their business plans and economic goals.
As noted above, the project proposes development incentives that help achieve the proposed project density and benefit the site and the surrounding area. Recommended Conditions of Approval GC-5 and BP-10 (Attachment 8) and GC-11 and BP-7 (Attachment 9) have been added to ensure the provision of the proposed incentives in the final design and their maintenance for the life of the project.
LSAP Residential Development Capacity
The LSAP allows a maximum residential development capacity of 5,935 net new housing units. This buildout level was studied in the 2021 LSAP SEIR to ensure that long-term development within the plan area would not adversely impact the environment or exceed the carrying capacity of infrastructure systems. As of the staff report production date, 1,691 residential units have been built or approved (including recently approved projects at 1150-1170 Kifer Road and 1202 Kifer Road). The remaining balance is 4,244 units, and approval of this project would result in a balance of 3,964 units. Therefore, the project is within the allowable LSAP residential capacity, and a subsequent EIR is not required.
Density Bonus Waivers and Incentives
The California Density Bonus Law allows applicants to request unlimited waivers (reductions in development standards) that will have the effect of physically precluding construction of the development with the allowed number of units. The California Density Bonus Law also allows concessions to deviate from design standards and other development regulations when such regulations potentially make the project economically infeasible for the developer to build. Based on the number of affordable units in the project, up to three incentives or concessions can be requested.
The applicant has provided a letter (see Attachments 14 and 15) justifying the requested waivers and concessions (also termed incentives). The applicant requests the following three waivers to accommodate the proposed number of residential units on the two sites:
1. Landscape frontage strip: SMC Section 19.37.040 requires a minimum 15-foot-wide landscaped frontage strip for all properties with a frontage on a public street. The frontage strip is measured from the inside edge of the public sidewalk or, if no sidewalk exists, from the curb.
The existing sites do not have a public sidewalk, only private walkways along the front facades of the existing buildings. New public sidewalks would be installed in the same general location as the private walkways behind the existing mature street trees. When measured from the inside edge of the new sidewalks, the standard is not met, but the existing landscape frontage buffers would still remain, which are over 15 feet wide as measured from the curb. The intent of the standard is met, and the mature street trees would be retained as emphasized in LSAP policies. Furthermore, there would be a four-foot-wide planting strip to buffer the sidewalk from the new building facades.
2. Distance of recycling and solid waste enclosure from dwelling units: SMC Section 19.38.030 requires recycling and solid waste enclosures to be within 150 feet (path of travel) from any dwelling unit. For the 1154 Site, 36 units (21% of 173 units) will not meet the requirement, with distances up to 230 feet, exceeding the allowable distance by 80 feet. For the 1170 Site, 28 units (26% of 107 units) will not meet the requirement, with a distance up to 220 feet, exceeding the allowable distance by 70 feet. As conditioned, Environmental Services Department (ESD) is supportive of the proposed trash management plan.
3. Landscape area: SMC Table 19.35.090 <https://library.qcode.us/lib/sunnyvale_ca/pub/municipal_code/lookup/19.35.090> requires a minimum of 20% of the lot area to be landscaped. For the 1154 Site, 18.5% of the site would be landscaped.
For the 1170 Site, 12.5% of the site would be landscaped. The project also includes around 5,200 square feet of decorative stone area (which exceeds the paved area that can be included in the landscape calculation), When including all the decorative stone areas, 19.5% of the site could be considered landscaped.
Note that both sites meet the minimum requirement for usable open space per dwelling unit, which is 50 square feet per dwelling unit.
Additionally, the applicant has identified three concessions, but as described below, only one is required:
1. Exceed the maximum non-residential FAR: SMC Table 19.35.060 <https://library.qcode.us/lib/sunnyvale_ca/pub/municipal_code/lookup/19.35.060> allows for a 35% base maximum FAR for non-residential development. LSAP Policy D-P6 and the LSAP development incentives program require a development agreement for additional office, R&D, and industrial FAR above the base maximum, up to a maximum of 150% non-residential FAR with incentives.
The applicant seeks an additional 23% office FAR for the 1154 Site and additional 17% office FAR for the 1170 Site, bringing the total to 173% and 167% office FAR, respectively (about 27,000 square feet above the 150% FAR maximum for both sites). The applicant states that the office component yields higher returns than the residential component, making the overall project financially feasible. Furthermore, the letter justifies that the additional office square footage would lead to identifiable and actual cost reductions for both the affordable and market-rate units.
2. No development agreement: At one time, the applicant requested an incentive to waive the City’s requirement for a Development Agreement for office FAR exceeding 35% of the base maximum FAR. Development above this FAR threshold requires the applicant to provide Community Benefits negotiated as part of a DA, which may include incentives from the LSAP Development Incentives Program. Subsequent to the request, the City and the applicant collaborated on the terms of a DA, making this incentive unneeded.
3. Extend the two-year entitlement expiration (with one-year potential extension) to five years (with a one-year potential extension) for a total of six years: The entitlement expiration extension is part of the DA (10 years with up to two years extension), and thereby, this incentive is no longer required.
Staff finds that the requested waivers are reasonable given the site conditions and the additional density enabled by State Density Bonus law. Further, staff recommends the requested concession for FAR above 150% based on the terms of the DA. The requested waivers and concession still result in a well-designed project substantially consistent with LSAP standards and are not impactful to adjoining properties or the greater LSAP district.
Parking
AB 2097 prohibits mandatory provision of automobile parking for development projects located within half a mile of a major transit stop. Given the proximity to the Lawrence Caltrain Station, the projects qualify for the provisions of this legislation. Nevertheless, the applicant is proposing on-site parking and valet service to meet the peak parking demand on-site.
The LSAP highlights a historical overabundance of on- and off-street parking within the plan area. It underscores the importance of effectively managing the existing parking supply, avoiding overbuilding parking in the future, and encouraging parking management strategies, including shared parking, structured parking, unbundling, and car sharing.
Based on the minimum LSAP parking standards in the Zoning Code, the 1154 Site would require 471 parking spaces and the 1170 Site would require 274 parking spaces. The Zoning Code further provides that criteria for parking reductions will be determined as part of the project review. Both sites will provide parking shared between the residential and office uses, which typically reduces the amount of parking needed for a site.
The applicant provided a parking study by Walker Consultants (Attachment 16) that evaluated the parking needs for the proposed mixed-use developments. This analysis considered shared parking between residential and office users, planned transportation demand management (TDM), and operational strategies, including proposed valet parking.
Based on this analysis, the 1154 Site is estimated to have a peak demand of 346 parking spaces (119 for residential use and 227 for office use), while the 1170 Site is estimated to have a peak demand of 207 spaces (72 for residential use and 135 for office use). The projects meet the peak demand by providing 352 spaces for the 1154 Site and 207 spaces for the 1170 Site. The applicant proposes shared parking between the office and residential users.
In compliance with the City’s Reach Code requirements for multi-family and office developments, the proposed parking plan for the 1154 Site includes 167 spaces with electric vehicle-ready circuits (RC) and 48 spaces with electric vehicle charging stations (EVCS). For the 1170 Site, there are 94 spaces with RC and 22 spaces with EVCS. Both buildings feature two levels of below-grade parking, operating as valet service during weekdays from 7:00 a.m. to 7:00 p.m. and as self-park at all other times.
To comply with LSAP bicycle parking requirements, the applicant is proposing 80 bicycle parking spaces for the 1154 Site, comprised of 62 Class I and 18 Class II spaces, and 52 bicycle parking spaces for 1170 Site, including 39 Class I and 13 Class II spaces.
Traffic
The projects qualify as transit-supportive projects and are exempt from a vehicle miles traveled (VMT) analysis based on the proposed office FAR, residential density, and location near Lawrence Station. Transit-supportive projects include office developments with over 75% FAR or a residential project with a minimum density of 35 dwelling units per acre, located within half a mile of an existing major stop or along a high-quality transit corridor.
City Council Policy 1.2.8 requires a Local Transportation Analysis (LTA) incorporating a level of service (LOS) operational analysis to ensure intersection and roadway efficiency and compliance with the VTA’s Congestion Management Program Transportation Impact Analysis guidelines.
The City contracted with Hexagon Transportation Consultants to conduct a LTA to assess potential near-term adverse traffic impacts associated with the proposed development (see Attachment 18). The LTA identifies adverse LOS deficiencies at two intersections on Lawrence Expressway (at Kifer Road and Reed Avenue/Monroe Street). The project is required to pay a traffic impact fee (TIF), which would constitute the fair share contribution towards the cost of the improvements for these intersections.
The LTA also recommends painting red curbs extending 25 feet on both sides of the project driveways to ensure adequate sight distance. The City’s Active Transportation Plan includes replacing on-street parking with bike lanes, eliminating the need for red curbs.
Tree Preservation, Removal, and Replacement
The applicant has submitted arborist reports evaluating the health and disposition of all trees onsite and in the public right-of-way. There are 24 existing trees on the 1154 Site and 41 on the 1170 Site, with eight trees categorized as "protected" for each site pursuant to SMC Chapter 19.94 (38 inches or greater in circumference measured at 4.5 feet above grade). The applicant proposes the removal of 13 trees for the 1154 Site and 32 trees for the 1170 Site, including four and six protected trees, respectively, due to conflicts with the proposed site layout. In compliance with the City's Tree Replacement Standards, the applicant plans to plant 18 new 24-inch box trees onsite for each site, exceeding the replacement standards for removal of protected trees.
In alignment with LSAP policy OSP-6, the applicant is preserving all mature cedar and coast redwood trees along the Sonora Court frontages, except for one cedar tree on each of the sites near the existing driveway approach. The City Arborist, Planning Division, and Public Works Department staff walked the project area with the applicant to verify the proposed tree removals. The removal of the two cedar trees was deemed necessary to accommodate the driveway approach and pedestrian crosswalk, a decision supported by the City's Traffic and Transportation Division. The arborist report also provides recommendations for tree protection measures for the mature trees along Sonora Court. Staff has included a condition of approval requiring adherence to these recommendations (Condition BP-13, Attachment 8 and Condition BP-16, Attachment 9).
Noise Attenuation
The project sites are located near the noise sources of the Lawrence Caltrain Station. While the project is not anticipated to significantly increase noise levels in the area, a noise study was conducted to assess project design measures to meet General Plan interior and exterior noise goals for new residences and common usable open spaces. The study confirmed that the noise levels for the exterior usable open spaces for 1154 Site and 1170 Site will not exceed the conditionally acceptable average noise level for day and night (Ldn) of 70 decibels (dBA). To achieve General Plan goals for interior spaces, the study includes recommendations for sound-rated exterior assemblies and limiting glazing for bedrooms and living spaces, which is included in the proposed plans. Condition of approval BP-27, Attachment 8, and BP-30, Attachment 9 requires the project noise consultant to review the construction plans and confirm their recommendations have been met. Follow-up field verification testing is also required prior to occupancy of the units per condition PF-4.
Transportation Demand Management
The projects are required to provide Transportation Demand Management (TDM) plans with a daily trip reduction target of at least 20% and a peak hour trip reduction target of at least 35% for the office uses pursuant to Policy TDM-P2 of the LSAP. A preliminary TDM plan (for both sites) is included in Attachment 19 and includes initial reduction measures. Final TDM plans will be required prior to building permit issuance, and upon the building occupancy, annual reporting is required according to the City’s TDM Program.
Trash and Recycling Access
Solid waste and recycling service is provided through chutes on residential floors that are disposed into trash rooms within the building, completely enclosed from view. Additionally, there is a separate trash room provided for the office use on the first floor of each site. Building management would stage solid waste and recycling bins in a designated area along the west property line of each of the parcels. Additionally, screening details for the staging area will be provided at the building permit stage with review by City staff per condition of approval BP-48 and BP-49 (Attachment 8) and BP-51 and BP-52 (Attachment 9).
The applicant has collaborated with Environmental Services Department (ESD) and Department of Public Works (DPW) staff to ensure that the proposed trash management plan and circulation plan broadly comply with the requirements for solid waste and recycling collection vehicles. Staff has included conditions of approval to further refine the solid waste management plan (Attachments 6 and 7).
Public Improvements
The projects include the installation of a new curb, gutter, six-foot wide sidewalks, driveway approaches, street trees, seating decks, and streetlights in the public right-of-way per City's standard specifications for LSAP. The applicant will upgrade the water, sewer, storm drain, and dry utilities per SMC.
Effective July 1, 2023, the Regional Water Quality Control Board has upgraded stormwater regulations that mandates the treatment of impervious surface created or replaced within public right-of-way as part of the project, including new sidewalks and driveway approaches. The applicant has collaborated with DPW staff to ensure the proposed stormwater management plan aligns with the updated requirements.
Development Agreement (DA)
A DA is a tool used by some cities to assist in providing certain assurances for a developer and a city. A DA is essentially a contract between the City and the developer that the City Council approves through adoption of an ordinance. A DA outlines the obligations of the developer and must describe the benefit to both the developer and the City. The City has entered into DAs with other project sponsors; since 2014, DAs have included Landbank Investments (2015), Jay Paul (2014, 2016), STC Venture (Cityline - 2020), Kasik (Minkoff 100 Altair - 2020). Intuitive Surgical (2021) and Hon Family Trust/Edward H. Leone Jr. LLC (a.k.a. Minkoff 480 S Mathilda, 2022).
A DA is commonly used to guarantee development approvals to the landowner/ developer and to provide additional benefits to both the City and a developer that could not otherwise be obtained through standard land use approvals. The City has primarily used DAs for major development projects that may take longer to complete construction and more recently DAs have been used as a tool to allow more development (square footage, units, height) with appropriate community benefits.
The 2022 Lawrence Station Area Plan (LSAP) amendments were written to enable for office, R&D, and industrial FAR above the base maximum with a development agreement. Some increases in land use intensity would be possible without a DA; however, the total project proposed for the sites would not be possible without a DA.
Unlike other DAs, this one is between the City and the Developer (vs. the owner). The DA requires current property owner consent to recordation against the properties. The DA identifies the terms and obligations of both parties, the general and vested entitlements, and identification of the mutual benefits to both parties. The full draft of the DA is found in Attachment 3 as an appendix to the Draft Ordinance. Below are summaries of the respective benefits outlined in the DA.
City Benefits
The DA includes the following benefits to the City:
• BMR Units. A total of 46 inclusionary affordable housing (or below market rate (“BMR”) housing units, of which 10 will be affordable to Very-Low Income households and 36 will be affordable to Low income households, which exceeds the total BMR requirement for Properties by 5 BMR units affordable to Low Income households.
• LSAP Incentives. Lawrence Station Area incentives, valued at $32,000.
• Lawrence Caltrain Connection and Improvements (Special Development Permit Number 2022-7271 only), including:
o A publicly accessible path from 1170 Sonora Court to the Caltrain property;
o Caltrain Lawrence Station improvements to facilitate access to the northbound platform;
o Station-serving retail located at the southeast corner of the 1170 Sonora Court building; and
o A placemaking element, valued at $100,000.
• Community Benefit Fund Contribution. Payment of $1,217,495 (split proportionately for each of the sites based on size of the office use.
• Point of Sale for Project Construction. - Developers to designate the City as the point of sale for California sales and use tax purposes during Project construction.
Developer Benefits
Benefits to the developer contained in the DA:
• Office Density Bonus - Bonus office of 176,130 gross square feet over the maximum allowed in the 2022 updated Lawrence Station Area Plan.
• Additional time to exercise the permit.
• No new impact fees (including revisions to existing fees except for current escalation provisions) for 5 years (and the lesser of the current or new park dedication in-lieu fees).
Other Provisions
• The term of the DA is for ten years with an additional two years subject to approval by the City Manager, for good cause.
• Protections against initiatives, referenda and moratoriums.
• The project would not be subject to any new taxes or impact fees for five years, except for citywide general and special taxes or certain area-wide assessment districts.
• Subsequent reviews consistent with the terms of the DA.
• General provisions regarding review, responsibilities of each party, procedures for default, etc.
Fiscal Impact
The DA contains a benefit to the City of $1,217,495 to the Community Benefit Fund. The project is subject to payment of park-in-lieu, transportation impact fees (TIF), housing mitigation fee (HMF) for the office area, LSAP sense of place fee, LSAP residential wastewater fee, and LSAP plan maintenance 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
The applicant hosted a neighborhood outreach meeting on February 22, 2023. The meeting was held virtually, and two community members attended the meeting. The participants expressed support for the project and had general questions about the project timeline and construction schedule.
Study Session
On February 27, 2023, the Planning Commission held a study session on the project and had the following comments:
• Provide rendering of the south elevations, facing the Caltrain tracks
• Provide details of the eight-foot-tall southern walls
• Address blank walls and surfaces along the south elevation of 1170 Sonora Court
The current plan set includes renderings of the south elevation and details of the eight-foot-tall CMU wall (Sheet G.A.013 and L.A. 3.01 of Attachments 10, and Sheet G.B.013, B.B.015 and L.B.3.01 of Attachment 11). Subsequently, the applicant made some improvements to 1170 Site's south elevation to address the comments. These include a mix of materials, including decorative screens, glazing, and siding. Additionally, the design includes wall plane changes and recessed upper walls, which help in enhancing the articulation of the façade.
Notice of Planning Commission Public Hearing
Public contact was made by posting the Planning Commission meeting agenda on City Hall's official notice bulletin board. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during regular business hours) and on the City's website.
1,028 notices were sent to surrounding property owners and residents within 2,000 feet of the project site, which is consistent with the City Council's policy for an expanded noticing radius for over five-story projects, in addition to standard noticing practices, including advertisement in the Sunnyvale Sun Newspaper, and on-site posting.
ALTERNATIVES
1. Make the Determination required by Resolution No. 371-81 for a Development Agreement (Attachment 2 to the Report)
2. Make the required findings to approve the CEQA determination as pursuant to CEQA Guidelines Section 15162 and 15168(c)(2) and (4) and approve the Special Development Permits based on findings in Attachment 6 and 7 to the report and Recommended Conditions of Approval in Attachment 8 and 9 to the report.
3. Introduction of an Ordinance Approving and Adopting a Development Agreement between the City of Sunnyvale and SKS Partners (Attachment 3 to the report).
4. Alternatives 1-3 with modifications.
5. Do not make the CEQA Findings and direct staff as to where additional environmental analysis is required.
6. Deny the Special Development Permit and provide direction to staff and the applicant on where changes should be made.
7. Do not introduce the Ordinance for the Development Agreement and provide direction to the staff and developer on desired modifications.
STAFF RECOMMENDATION
Recommendation
Recommend that the City Council:
1. Make the Determination required by Resolution No. 371-81 for a Development Agreement (Attachment 2 to the Report).
2. Make the required findings to approve the CEQA determination as pursuant to CEQA Guidelines Section 15162 and 15168(c)(2) and (4) and approve the Special Development Permit based on findings in Attachments 6 and 7 to the report and Recommended Conditions of Approval in Attachments 8 and 9 to the report.
3. Introduction of an Ordinance Approving and Adopting a Development Agreement between the City of Sunnyvale and SKS Partners (Attachment 3 to the report).
JUSTIFICATION FOR RECOMMENDATION
The proposed projects further the goals and objectives of the General Plan and LSAP by providing office and high-density residential housing with a significant number of affordable units within close proximity of the Lawrence Caltrain Station. The sites are in the Transit Core West subarea of the LSAP, intended for increased development to more transit-oriented uses.
Moreover, the projects incorporate community benefits to enhance area connectivity and the pedestrian environment in accordance with the LSAP Development Incentives Program. Traffic impacts will be offset through fair share payments toward future improvements. The proposed walkway connection between Sonora Court and the Lawrence Caltrain Station aligns with LSAP’s goal of providing safe, inviting, and attractive pedestrian connections for residents, workers, and visitors within the Plan area.
The DA for higher-intensity office areas will help secure needed area improvements and financial benefits for the City. The applicant’s justifications for the requested waivers are reasonable, as they still result in well-designed projects and ensure the provision of affordable housing consistent with the framework of the California Density Bonus Law and HAA. No new significant environmental impacts would occur with the implementation of the projects, and all approved mitigation in the 2016 LSAP EIR and 2021 LSAP Update SEIR would continue to be implemented.
Staff
Prepared by: Aastha Vashist, Senior Planner
Reviewed by: George Schroeder, Principal Planner
Reviewed by: Shaunn Mendrin, Planning Officer
Reviewed by: Trudi Ryan, Director of Community Development
Reviewed by: Connie Verceles, Deputy City Manager
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Reserved for Report to Council
2. Draft Planning Commission Findings for the Development Agreement
3. Draft Ordinance and Development Agreement
4. Noticing and Vicinity Map
5. Project Data Tables
6. Recommended findings for 1154 Sonora Ct (File no.2022-7270)
7. Recommended findings for 1170 Sonora Ct (File no.2022-7271)
8. Recommended Conditions of Approval for 1154 Sonora (File no.2022-7270)
9. Recommended Conditions of Approval for 1170 Sonora (File no.2022-7271)
10. Architectural and Site Plans for 1154 Sonora Ct (File no.2022-7270)
11. Architectural and Site Plans for 1170 Sonora Ct (File no.2022-7271)
12. 1154 Sonora Ct Environmental Checklist prepared by Ascent Environmental
13. 1170 Sonora Ct Environmental Checklist prepared by Ascent Environmental
14. 1154 Sonora Ct State Density Bonus Justification letter by applicant
15. 1170 Sonora Ct State Density Bonus Justification letter by applicant
16. Parking study prepared by Walker Consultants
17. Links to webpages
18. Local Transportation Analysis (LTA) prepared by Hexagon Transportation Consultants
19. TDM plan prepared by Walker Consultants
20. Letter from JPB for Lawrence Caltrain Connection
21. Public Comment Letter