REPORT TO PLANNING COMMISSION
SUBJECT
Title
Proposed Project:
SPECIAL DEVELOPMENT PERMIT: to allow a six-story office building with 153,000 square feet and ground floor retail space with 12,735 square feet, 88,915 square feet of parking and 1,019 square feet of service area, and one level of below grade parking.
Location: 300 South Mathilda Avenue (APN: 209-34-019)
File #: 2019-7923
Zoning: DSP (Downtown Specific Plan)/Block 18
Applicant / Owner: STC Venture LLC (applicant and owner)
Environmental Review: No additional review required as pursuant to CEQA Guidelines Section 15168(c)(2) and (4) - environmental impacts of the project are addressed in the Downtown Specific Plan Program Environmental Impact Report (EIR) (State Clearinghouse #2018052020).
Project Planner: Aastha Vashist, (408) 730-7458, avashist@sunnyvale.ca.gov
Report
REPORT IN BRIEF
General Plan: Transit Mixed Use
Existing Site Conditions: Vacant lot
Surrounding Land Uses
North: Office building
South: Bank and surface parking lot
East: Retail and residential
West: Retail and residential
Issues: Consistency with the Downtown Specific Plan (DSP)
Staff Recommendation: Make the required Findings required to approve the CEQA determination that the project is consistent with the Downtown Specific Plan’s Program Environmental Impact Report and no additional environmental review is required and approve the Special Development Permit based on Findings in Attachment 3 of the report and Recommended Conditions of Approval in Attachment 4 of the report.
BACKGROUND
Description of Proposed Project
The proposed project (by CityLine) is located on Subblock 1 which is a part of Block 18 of the DSP. The entire Block 18 is bordered by S. Mathilda Avenue, S. Sunnyvale Avenue, W. Washington Avenue, and W. McKinley Avenue, and includes existing office, retail, and residential buildings. Subblock 1 is bordered by S. Mathilda Avenue, W. McKinley Avenue, Booker Avenue, and the area referred to as Aries Way.
Subblock 1 is currently developed with a four-story retail and multi-family building to the east, and a two-story bank building with a surface parking lot to the south (the bank site is not part of the CityLine development). The proposed project includes the redevelopment of the 1.9-acre vacant site located mostly in the north western part of the block with one six-story mixed-use building that includes:
• Ground floor consisting of:
o 8,732 square feet of retail space facing S. Mathilda and W. McKinley Avenue,
o 4,003 square feet of Makerspace* on S. Mathilda Avenue,
o 2,002 square feet of the lobby on the area referred to as Aries Way,
o 18,471 square feet of the parking area, and
o 3,667 square feet of the shared service area for hallways, loading and solid waste on Booker Avenue.
*The applicant defines a “Makerspace” as a shared workspace where people with common interests can socialize and collaborate.
• The proposed parking is arranged in three parking levels containing 252 parking spaces at the underground, ground, and second-floor levels.
• The remaining upper floors will contain a total of 153,000 square feet of office space for use by future tenants.
• Additionally, improvements along N. Mathilda Avenue, W. McKinley Avenue, Aries Way, and Booker Avenue frontages are proposed.
A Special Development Permit (SDP) is required for review and approval by the Planning Commission for the site and architectural review. As part of the adopted 2020 Development Agreement between the City of Sunnyvale and STC Venture LLC (CityLine), an increased building height of up to 90 feet (for this site) is allowed. The Development Agreement also allows a maximum of 652,801 square feet of additional office space for the entire development area on Block 18, and 181,931 square feet of newly constructed commercial space permitted.
See Attachment 1 for a map of the vicinity and mailing area for notices and Attachment 2 for the Data Table of the project.
Previous Actions on the Site
All of Block 18 has been subject to various SDPs based on multiple proposals for redevelopment. The following are more recent actions on the site:
• A Development Agreement (DA) was approved in 2020 for Block 18 (Ord. No. 3164-20), which granted increased dwelling units, increased office square footage and increased site-specific building heights. Specifically, the DA allowed six (6) stories and 90 feet height for the project site. The City would receive a Community Benefit contribution of $10,632,040 for office space in excess of the base amount, point of sale for all new development (construction/development taxes benefits to the City), publicly accessible parking in Sub-Block 3 North, and a dynamic parking system integrated with the existing public parking in Block 18.
• A Special Development Permit (2020-7110) was approved by the Planning Commission on March 29, 2021 for two seven-story office buildings with approximately 499,800 square feet and ground floor retail space with approximately 50,900 square feet, 22,105 square feet of flex space, and 37,415 square feet of shared services and two levels of below-grade parking on the northern part of the Subblock 3 adjacent to Washington Avenue. This project includes the Community Benefit contribution of about $7.4 million for office space above the base.
• A Special Development Permit (2020-7262) was approved by the Planning Commission on January 11, 2021 for a twelve-story mixed-use building with 479 residential dwelling units, approximately 30,000 square feet of commercial space, and two levels of underground parking on the south half of Subblock 3.
EXISTING POLICY
Downtown Specific Plan Goals and Policies: The vision, key goals, and policies from the Downtown Specific Plan which pertain to the proposed project have been included in the Findings in Attachment 3.
Applicable Design Guidelines: The DSP includes Design Guidelines in Chapter 6 that are broken down by General Design Guidelines, Building Type-Specific Guidelines, and the Commercial Core Design Guidelines. The proposed project is consistent with the design guidelines and they are included in the Findings for Approval in Attachment 3.
ENVIRONMENTAL REVIEW
As part of the review of the amendments to the DSP, the City prepared a Draft and Final Environmental Impact Report (collectively, "EIR") (State Clearinghouse #2018052020) pursuant to the California Environmental Quality Act (CEQA). The EIR provided a program-level review of the environmental impacts of the DSP amendments as well as a project-level review of six specific development proposals within the DSP, including the development proposed by the applicant.
Certification of the EIR included a Mitigation Monitoring and Reporting Program (MMRP) with provisions to reduce the potentially significant impacts to a less than significant level, although some impacts would remain significant and unavoidable after mitigation. A Statement of Overriding Considerations for significant unavoidable impacts to cultural and historic resources, noise, utilities, and traffic was adopted by the City Council as part of its action on the EIR. An adopted Statement of Overriding Considerations is deemed by the certification of the EIR to be applicable to subsequent projects that are consistent with or that implement the DSP’s goals and objectives. As the lead agency, the City of Sunnyvale implements the adopted MMRP for each subsequent project that includes the approved mitigation measures of the EIR.
The DSP EIR analyzed four projects located within Block 18, which included Subblock 1 (300 S. Mathilda Avenue/Subject Site), Subblock 3 (200 W. Washington Avenue and 200 S. Taaffe Street), Subblock 2 (300 W. Washington) and Subblock 6. The DSP EIR analyzed a total of 793 dwelling units, 164,906 square feet of commercial space and 856,199 square feet of office space. While the proposed project is 5,604 square feet over the anticipated commercial square footage for the site, it is still under the total studied for all of Block 18. Staff is tracking the anticipated, approved, and remaining development potential for Block 18 to ensure that development remains within the scope of the DSP EIR and the Development Agreement.
The proposed office and commercial space for the project is within the scope of the DSP EIR that was studied for Block 18 and is therefore exempt from additional CEQA review because the proposed project was specifically analyzed in the EIR and because it has no additional significant impacts that were not analyzed as part of the programmatic EIR for development in the DSP area (CEQA Guidelines Section 15168(c)(2) and (4) and Public Resources Code Section 21094(c)).
The 300 Mathilda Avenue Specific Development MMRP has been incorporated into the Recommended Conditions of Approval in Attachment 4.
DISCUSSION
Present Site Conditions
The existing 1.9 acres site is vacant and undeveloped. The perimeter of the site includes streetscape improvements on S. Mathilda and W. McKinley Avenue. No other improvements or development exist on the site except for ground signage.
Development Standards
Development Intensities
The DSP provides a total base allocation of 387,000 square feet of office, and 181,931 square feet of commercial space for Block 18. The Development Agreement provides an additional allocation of 265,801 square feet of bonus office space for the four projects proposed in Block 18. The following table identifies the current remaining development potential of the 2020 DSP plus the approved Development Agreement, as well as the remaining potential for the other projects in Block 18.
The proposed Makerspace may be occupied by niche retail, bicycle lounges, or a traditional maker space for use by artists, and small startups. Staff is classifying the use as a retail space for estimating parking needs and impact fees.
Lot Coverage
The DSP does not provide maximum lot coverage; however, it allows review of proposed lot coverage through the SDP process. The proposed development would cover 50% of the parcel. The proposed lot coverage is less than what is expected within downtown since the site includes the extension of Aries Way, Booker Avenue, and perimeter sidewalks.
Site Layout and Architecture
The project consists of a six-story building with one level of underground parking. The ground floor would be two stories in volume (22-foot plate height) and will include retail on McKinley Avenue, Makerspace on Mathilda Avenue, and a lobby along Aries Way. Service areas and access to the ground and second-floor level parking access will be from Booker Avenue. Access to the lower parking level will be from a ramp near the Aries and W. Iowa Avenue intersection. The portion of the lower parking level located south of Booker Avenue is open to above and screened from the street view by three feet six inches tall wall and landscaping.
The proposed architectural style can be considered contemporary. The ground floor level is well-defined and enriched by a combination of Glass Fiber Reinforced Concrete (GFRC) panels, clear storefront glass, metal panels, and dark bronze painted metal trim. The double-height art walls on Mathilda and Aries Way will add warmth and visual interest at the pedestrian level. Art walls will be maintained by the property owners and will be subject to review and approval by the Arts Commission (Attachment 4, BP-14).
The proposed 360-degree architecture maintains similar level of design and detailing along all the facades. Angled wall planes at the upper floor levels on Mathilda and McKinley Avenue help in establishing a focal point at the street intersection. Vertical metal panel fins with varying depth and width breaks the curtain glass walls, including a staggered pattern of projecting vertical fins on Mathilda and solid flush panels on Booker and Aeries Ave facades. A key element of the proposed design is the wrap-around decks on the upper floor levels on Mathilda and Booker Avenues. Limited window openings and size of glazing on upper floor levels along Aries Way help in minimizing privacy impacts for the adjacent multi-family development.
The project is subject to the General Design Guidelines, Building Type Guidelines, and Commercial Core Guidelines in Chapter 6 of the DSP. The proposed architectural design is consistent with the guidelines by utilizing high-quality materials, creating interesting pedestrian-scale elements that promote activated streets, and massing that is respectful of the surrounding properties. In addition, the building materials and surrounding landscaping have been thoughtfully designed to comply with Bird-Safe Design Guidelines. A table has been included in the Findings for Approval in Attachment 3. A total of one hundred and eight (108) design guidelines were compiled. Of these, twenty-eight (28) were not applicable either due to specific site references or land-use typology. Staff found that the project complies with all the remaining eighty (80) applicable design guidelines.
Refer to the findings in Attachment 3 for staff narrative and justification.
Building Height
The maximum building height allowed in Block 18 in the DSP is 75 feet. The approved Development Agreement allows building height to increase up to 90 feet for Subblock 1. The proposed building height would be 89 feet and 6 inches, measured from the top of curb to the tallest building parapet element.
The Zoning Code (Title 19 of the Sunnyvale Municipal Code) limits rooftop mechanical equipment to 25% of the roof area and allows an additional 25 feet in height for such equipment. The project meets the requirement by proposing rooftop mechanical equipment occupying 4.4% of the roof area and an additional 13 feet in height.
Parking
Sunnyvale Municipal Code (SMC) Section 19.28.100 encourages shared parking and requires a parking study to evaluate actual parking demand. A parking study was prepared by Walker and Associates, dated March 23, 2021 (see Attachment 6). The Study evaluated all existing and proposed projects and parking within Block 18 (CityLine development) and the Parking Management Assessment District (PMAD). Block 18 is located in Zone 1 of the PMAD and currently it is not assessed a parking fee as this area provides its own parking within downtown. It also supplements parking for uses outside of Block 18. Figure 1 illustrates the PMAD zones and parking lots and structures.
The Parking Study considers proposed land uses, drive ratios based on Census data, other data collected for specific developments, non-captive adjustments which take into account people visiting two or more uses, and presence factors that identify peak demand which is typically 2:00 p.m. for most uses. A driving ratio adjustment is the percentage of patrons and employees that are projected to drive to the site in a personal vehicle expressed as a ratio. Based on the analysis, the overall public parking demand for Block 18 upon completion of the proposed projects will be 1,618 parking spaces, where 2,995 public parking spaces will be available during the weekday with an additional 786 spaces in the evenings and weekends. This results in an 81% utilization rate with 559 additional public spaces available on the weekdays (peak parking demand) and an additional 786 spaces during evening hours and weekends. Figure 6 in the Walker Parking Study provides a breakdown of uses and parking demand of the subblocks in Block 18. It is worth noting that Subblock 6 was evaluated as its current use, a surface parking lot. When a development application for Subblock 6 is submitted for City review, Walker and Associates will evaluate the proposal as it relates to parking in all of Block 18. The DA further requires landowner to construct publicly available parking in new parking garages in Sub-Blocks 3 and 6 at no cost to the City, which shall also be available to serve the Historic Murphy Avenue.
The Parking Study includes several recommendations including ensuring there is a balanced distribution of parking and ensuring that there is not spill over outside of Block 18 (Zone 1 of the PMAD). These recommendations have been included in the Recommended Conditions of Approval in Attachment 4. Additionally, as part of the considerations for adopting the amendments to the DSP, a Downtown Parking Analysis was also considered. It included a list of short-term and long-term techniques to improve the operations of the Downtown Parking Management Assessment District. One long-term recommendation was the formation of a Transportation Management Association (TMA) for Downtown. Staff has included a condition of approval requiring the applicant/ownership to participate in the TMA when it is established in the future.
Bicycle Parking: SMC Section 19.28.100 requires bicycle parking requirements to comply with the Santa Clara Valley Transportation Authority (VTA) Guidelines. Pursuant to the VTA guidelines, the project requires 30 bicycle parking spaces (21 Class I and 9 Class II bicycle parking spaces), where 70 Class I bicycle spaces are proposed. Staff has included a condition of approval requiring 9 Class II bicycle spaces to be installed on the site. Class II bicycle parking spaces are typically for a short-term use and includes bicycle racks to which a bicycle can be locked.
Parking Adjustment: The DSP requires a minimum of two (2) parking spaces per 1,000 square feet for office space and two (2) parking spaces per 1,000 square feet for retail mixed-use. The DSP also requires a parking analysis for downtown projects with shared parking and within the Parking Assessment District. Lastly, the Zoning Code allows for adjustments to parking requirements based on specific findings.
The following tables provide a breakdown of the required and proposed parking for the project.
The proposed project would provide 252 standard parking spaces on-site for the office space during the day, with an additional 81 standard spaces located in the “Pear” parking garage on S. Taaffe Street. The “Pear” (325 S. Taaffe Street) parking garage would be used by visitors to the ground floor retail use and office overflow. During the evenings and weekends, the on-site parking garage would be used by commercial uses and the public. The project includes a parking adjustment to allow 81 off-site parking spaces. These off-site spaces would be predominately used during the weekdays.
As noted in the parking analysis, Block 18 provides 559 extra spaces during the peak public parking demand due to complementary uses, off-site employee parking, and proximity to Caltrain and the VTA bus hub. Therefore, staff finds that the parking reduction on this site can be absorbed by the extra parking spaces within Block 18. To ensure parking supply would be efficiently managed and potential spillover parking would be reduced, a parking management plan would be required to identify parking locations for the overflow office tenants and retail use employees and patrons within the PD-1 (Pear) garage at 325 S Taaffe St.
Slopes of Garage Ramps: The Citywide Parking Structure Design Guidelines include a guideline regarding parking structure ramps. Specifically, Guideline PL-3 states the following:
• PL-3. Maximum vehicle ramp grade should be 12 percent with minimum 10-12-foot long transitions at the top and bottom of the ramp.
When the DSP was updated last year, a design guideline was included, which acknowledged that due to lot configurations downtown, steeper garage slopes may be considered. Specifically, the design guideline states the following:
• CC-D.8 Given the tighter constraints Downtown, parking garage ramps may be steeper than the City’s Parking Structure Design Guidelines, subject to City review for pedestrian and vehicle safety.
Staff has worked with the applicant to ensure that the ramp exits have clear visibility of pedestrians. The ramp access to the lower parking level is provided from Aries Way and to the second-floor level parking level is provided from Booker Avenue. To allow a clear line of sight, the ramps are unobstructed from structures, doors, and the height of guardrails are limited to a maximum of three feet six inches. The proposed driveway ramps are at 17% with a transition area at the top and bottom of the ramps. Parking garage driveway transition slopes range from 4% to 8% at a depth of around 10 feet.
The City’s Traffic Division found that the slopes along with the additional proposed measures for avoiding pedestrian and vehicular conflict are acceptable. The applicant proposes notification equipment including mirrors, audible warnings and signs at the garage entrances and exits to warn pedestrians of exiting cars. Since the adopted DSP acknowledged that steeper ramps may be needed, staff can support the request of increased ramp slopes with the additional safety measures included in the project (included in the Findings in Attachment 3 - Design Guidelines Table).
Traffic
The proposed project and density were evaluated in the EIR. The EIR identified potential traffic impacts with mitigations included in the Mitigation Monitoring and Reporting Program (MMRP). The proposed project would be responsible for its fair share contributions to several intersections and roadway improvements. The project would also contribute to the City’s Transportation Impact Fee, which covers projects identified in the Downtown Specific Plan Amendments EIR.
TDM Measures
As part of the MMRP for the EIR, the project is required to implement a Transportation Demand Management Plan (TDM) with an overall reduction of 6% in vehicle trips. The final plan shall be submitted and approved prior to the issuance of a building permit for the structure.
Landscaping and Streetscape Improvements
DSP requires landscaping for all the areas that are not devoted to driveways and access zones. The project will be installing new sidewalks, street trees, streetlights, and public realm furniture around the perimeter of the project site. The project proposes thirty-five (35) 48-inch box trees. Site improvements including updating the street frontages of the project site are pursuant to the DSP standards. A deviation from the DSP streetscape standards including modified tree spacing and a planter strip will be required for enhanced visibility of the area adjacent to the Wall Art on Mathilda Avenue. Staff is supportive of the proposed deviation only for the frontage of the Wall Art (Attachment 4, PS-1). The rest of the street frontages should meet the DSP streetscape standards. Other site improvements include the excavation for the underground garage located under the proposed building for the office tenants.
Green Building Requirements
The proposed project would be LEED Gold with USBC Certification. The project would not be requesting any incentives as part of the Green Building Program.
Solid Waste
Solid waste pick-up would occur along Booker Avenue. Bins would be moved out onto the staging area via a service and loading area. The angled staging area will be located near the Booker Avenue and Aries Way corner and screened from the view. The applicant would be solely responsible for the maintenance and operation of all solid waste on-site.
Public Art
The applicant is working with the Sunnyvale Visual Arts Coordinator for placement of art throughout Block 18. The project would be required to provide artwork on the site or in-lieu fee based on the valuation of the proposed project. Final art pieces and locations would be subject to review and approval by the Arts Commission.
Bird Safe Design
The proposed project was reviewed against the City’s Bird Safe Design Guidelines by Live Oak Associates, Inc (date August 25, 2021, see Attachment 7). The review found that location of the building is not in an area of high potential bird strikes due to its urban setting. Overall, the project complies with Option 2 of the City’s Bird Safe Design Guidelines. Live Oak Associates did note a concern with the transparent corners. Staff has included a condition of approval to comply with Live Oak and Associates review and to work with staff on the treatment options for the transparent corners of the proposed building.
Fiscal Impact
No fiscal impacts other than normal fees and taxes are expected. The project would be contributing a Transportation Impact Fee estimated at $814,877, a Housing Mitigation Fee estimated at $2,526,121, and a Public Art equivalent estimated at $274,264. The project would also be contributing towards the project’s fair share ($288,003) for traffic related improvements identified in the Downtown Specific Plan Environmental Impact Report. The project would also register all construction sales tax for the project with the State which would direct that revenue back to the City. Lastly, a contribution to the Community Benefit Fund of $3,189,612, which is the proportional contribution of the $10,632,040 required in the DA, based on the proposed square feet of Bonus Office Square Footage. The office building approved at 200 W Washington Avenue (2020-7110) is required to pay the remaining $7,442,428. [Staff notes that the approved DA locks in the project Impact Fees based on the fiscal year 2019/20 fees until March 2023.]
Public Contact
Neighborhood Outreach Meeting
The applicant held a virtual community outreach meeting on July 15, 2021. Over ten community members attended the meeting, who were generally supportive of the project. Staff and the applicant answered questions regarding construction duration and proposed uses.
Planning Commission Study Session(s):
On August 24, 2020, the project’s site plan and architecture were reviewed and commented on by the Planning Commission, with the following major recommendations:
• Consider relocation of the lobby to Mathilda Avenue or McKinley Avenue for enhanced visibility.
• Explore ways to have a more well-defined and visually distinct building middle and top.
• Enhance the elevation along Mathilda by extending the corner treatment at Mathilda/McKinley intersection to the building corner at Booker/Mathilda intersection.
• Explore ways to activate the ground floor façade facing Mathilda Avenue by addition of a larger storefront and addition of a pedestrian entry along the street.
• Enhance the elevations along Aeries and Booker Avenue by addition and continuity of the similar level of details and articulation as that along the main streets.
• Add landscaping to minimize the visual prominence of the garage entry.
In response, the applicant revised ground floor entries on Mathilda Avenue to create a more inviting pedestrian experience. Building facades along Aries and Booker Avenue were also revised to include recessed infill panels for adding depth and play of shadow and light to the façade. Due to the constraints and challenges of locating the lobby along the main streets, the applicant found that Aries Way was the most appropriate location for the main lobby. Relocation of the lobby would have interfered with the high-volume traffic on Mathilda Avenue and retail space on McKinley Avenue; the proposed location allows for more convenient drop-off of visitors/employees of the building.
On November 23, 2020, the project’s revised architectural design was reviewed and commented on by the Planning Commission. The following comments were made:
• Consider using a lighter color finish for the mechanical penthouse
• Reconsider the selection of liquidambar trees
In response, the applicant replaced the dark bronze color finish for the mechanical penthouse with a lighter gray color finish. Staff added Condition of Approval BP-16 to plant trees in-lieu of liquidambar subject to approval by the City Arborist.
Notice of Public Hearing
• Published in the San Jose Mercury News newspaper
• Posted on the site
• 3,115 notices mailed to property owners and residents within 2,000 feet of the project site, the Charles Street 100, Sunnyvale West and Heritage District Neighborhood Associations and the Downtown Sunnyvale Associations.
Staff Report
• Posted on the City’s website
Agenda
• Posted on the City’s official notice bulletin board
• Posted on the City’s website
Public Contact: Staff has not received any written comments at the time that the staff report was written.
ALTERNATIVES
1. Make the required Findings required to approve the CEQA determination that the project is consistent with the Downtown Specific Plan’s Program Environmental Impact Report and no additional environmental review is required and approve the Special Development Permit based on Findings in Attachment 3 of the report and Recommended Conditions of Approval in Attachment 4 of the report.
2. Make the required Findings required to approve the CEQA determination that the project is consistent with the Downtown Specific Plan’s Program Environmental Impact Report and no additional environmental review is required and approve the Special Development Permit based on Findings in Attachment 3 of the report and Recommended Conditions of Approval in Attachment 4 of the report subject to modified Conditions of Approval.
3. Deny the Special Development Permit and provide direction to staff and applicant on where changes should be made.
STAFF RECOMMENDATION
Recommendation
Alternative 1:
Make the required Findings required to approve the CEQA determination that the project is consistent with the Downtown Specific Plan’s Program Environmental Impact Report and no additional environmental review is required as pursuant to the California Environmental Quality Act Guidelines Section 15168(c)(2) and (4) and approve the Special Development Permit based on Findings in Attachment 3 of the Report and Recommended Conditions of Approval in Attachment 4 of the Report.
Staff
Prepared by: Aastha Vashist, Associate Planner
Reviewed by: Shaunn Mendrin, Principal Planner
Reviewed by: Noren Caliva-Lepe, Principal Planner
Reviewed by: Andrew Miner, Assistant Director Of Community Development
Approved by: Trudi Ryan, Director, Community Development Department
ATTACHMENTS
1. Site, Vicinity and Public Notice Mailing Map
2. Project Data Table
3. Recommended Findings
4. Recommended Conditions of Approval
5. Proposed Site and Architectural Plans
6. Walker & Associates CityLine Parking Study, dated March 23, 2021
7. Live Oak Associates, Inc. Study, dated August 25, 2021