Oliver’s Parcel TOC Case Study
Question(s): What residential development is currently permissible on the Oliver’s site and what is the impact of removing the Oliver’s property from the TOC rezoning? Description of the Existing Zoning District
Commercial, East Cotati Avenue Corridor (CE) Zoning District. The CE zoning district is a mixed-use classification that is applied to specific parcels on both sides of East Cotati Avenue, from Arthur Street east to the city limits. The corridor is appropriate for a wide range of retail and service land uses that primarily serve local residents and businesses, including offices, shops, personal and business services, and small-scale restaurants, where structures fronting East Cotati Avenue are generally two stories. Residential uses may also be accommodated as part of mixeduse projects, at a maximum density of up to 15 dwelling units per acre. The allowable intensity of nonresidential development is determined by Section 17.24.030 (Zoning district site planning and building standards) of this title. The CE zoning district is consistent with and implements the office, and general commercial land use designations of the general plan.
Olivers Shopping Center Parcel: 7.61 Acres
Existing CE Zoning
• 15 units/acre (91-114 residential units potential*)
*25% of the developed square footage must be commercial/retail/office space to ensure development is mixed use.
Summary of Existing Zoning Development Potential/Allowances The existing CE zoning would allow re-development of the Oliver’s Shopping Center Parcel with 12-15 units per acre (91-114 residential units) as a part of a mixed-use development which maintains the defined amount of commercial/retail/office uses. However, even if the City Council keeps the zoning as it currently is, redevelopment of the property utilizing one or more of the recent State laws (see summary, below) could allow redevelopment to occur as a pure residential or as a mixed-use project (with 25-percent of the development square footage as commercial), at a housing capacity of 182-228 units, depending on affordability levels, construction workforce requirements and other identified factors.
TOC Compliant Zoning District (Proposed)
• 25-35 units/acre (190-266 units (upzoning) potential*) *25% of the developed square footage must be commercial/retail/office space to ensure development is mixed use.
If the City Council adopts the proposed TOC zoning, the Oliver’s Shopping Center parcel could redevelop with 190-266 residential units as part of a purely residential or as mixed-use development which maintains the defined 25-percent of commercial/retail/office uses, and potentially up to 380-532 dwelling units leveraging recent changes in state housing laws.
TOC compliance requires a minimum base residential and commercial “density” across all eligible parcels to receive the maximum 25 points in the “Density” category. Removing the Oliver’s Shopping Center Parcel (7.61 acres) from the TOC rezoning ordinance would either:
1. Result in the need to further upzone the remaining TOC parcels; or
2. Result in the City not receiving the full 25 points allocated for the “Density” category.
Below is a summary of how each option may impact TOC eligibility based on staff’s current understanding of the compliance determination and scoring.
1. Upzone Other TOC Eligible Parcels in Lieu of the Olivers Shopping Center Staff have identified that the total number of parcels proposed for rezoning is approximately 124 individual lots, totaling 36.25 acres. 25 parcels are being proposed for the TOC District and 99 for the Santero Way (SW) District. To retain full TOC “Density” compliance and remove the
7.61-acre parcel developed with the Olivers Shopping Center, the City would need to increase the allowable residential density on the remaining 28.64 acres to accommodate the 99-152 units “lost” due to not upzoning this parcel (99-152 is the delta between the residential density allowed under the current CE zone (91-114) and that prescribed under the TOC density (190-266)). One way this could be accomplished is by further “upzoning” the remaining 24 parcels (which total
25.35 acres) proposed for TOC zoning with a new theoretical density range of 29-41 units per acre for these TOC parcels.
For simplicity and consistency with past commitments to existing residents residing in the Santero Way Specific Plan area, staff did not include the 99 parcels in the SW zoning district in the conceptual “upzoning”.
2. City Failure to Receive Full Density Category Points (25) An alternative to reallocating the units lost due to not including the Oliver’s 7.61-acre parcel is simply to not meet the TOC residential density average of 25-35 units per acre across all TOC eligible parcels. Staff does not have insight into the scoring impacts associated with this decision.
However, given that the density category includes both residential and commercial density, and that a significant majority of the eligible properties would be compliant. A conservative assumption would be a 20-point penalty for non-compliance.
Summary
If the City Council were to simply remove the Oliver’s Shopping Center from the TOC zone, it is likely that the City would not be viewed as fully compliant with the TOC requirements (score less than 85). This would likely have negative ramifications for future infrastructure funding and is not recommended.
Alternatively, the City Council could “shift” the housing units to other eligible parcels, which would require higher densities on the remaining parcels to avoid adding units the Oliver’s Shopping Center parcel. It is estimated that the other parcels would see an increase in density from a balanced 25-35 units per acre across the TOC area to 29-41 units per acre on the remaining parcels in the zone. These parcels as well as the Oliver’s property would continue to be subject to State Housing laws, which could result in additional density available above that allowed under the adopted “base” zone. This approach would likely reduce the TOC compliance score since all eligible parcels are not being “upzoned”, but not to the same degree that simply removing it from the zone would incur.
As proposed, the City Council could evenly distribute the housing density throughout the TOC eligible parcels, including the Oliver’s Shopping Center. Fundamentally, the TOC zoning designation increases the density of housing that is currently allowed in CE zone from 12-15 units per acre to 25-35 units per acre. This does not change the current zoning requirement for mixed-use development on this parcel. While there are no proposals to add housing currently, the increase in density would likely increase its financial viability. A housing project could add housing units as additional stories to the existing commercial buildings or could seek to redevelop portions of the site with stand-alone housing. While there is no ability to forecast a future proposal, under the existing or proposed zoning districts, Oliver’s Market is a regional draw that is likely to be integrated into any potential redevelopment of this property as a key amenity and profitable land use.
Multifamily & Mixed Use By-Right Housing Laws in California SB 35 / SB 423 (2017, expanded 2023)
• Mechanism: Ministerial approval for multifamily housing if jurisdiction is not meeting RHNA or lacks certified housing element (expanded under SB 423). • Eligibility:
o ≥ 2 units.
o Infill sites (≥ 75% urban perimeter).
o Located in urbanized area.
o Zoned for residential/mixed use (or commercial under SB 6). o Compliance with objective zoning, design, subdivision standards. o Affordability: minimum % of BMR units (10–50+, depending on RHNA status). o Labor: prevailing wages (>10 units), skilled & trained workforce (≥ 50 units), healthcare requirements, etc..
o No CEQA review.
AB 35 (2024/2025)
• Mechanism: Streamlined ministerial approval for multifamily/mixed-use projects in underperforming RHNA jurisdictions.
• Eligibility:
o ≥ 2 units (minimum two net new).
o Mixed-use: ≥ 66% of building area residential.
o Compliance with objective local planning standards (density, height, design). o Affordable housing thresholds tied to RHNA performance (e.g., 10% VLI, 50% LI depending on status).
o May include additional labor/site criteria (affordability covenant, certain site/location standards).
o No discretionary review.
AB 2011 (2022)
• Mechanism: Ministerial, CEQA-exempt approval for multifamily housing in commercial zones (on “commercial corridors”).
• Eligibility:
o Commercially zoned site (office/retail/parking zones) or corridor frontage ≥ 50 ft. o Two tracks:
100% affordable projects.
Mixed-income (≥ 15–20% affordable to qualify).
o Must meet specified residential density.
o Must comply with objective standards from comparable residential zoning. o Prevailing wage requirement.
o Allows Density Bonus layering.
o Cap tube: ministerial CEQA-exempt process in 90 days (≤150 units).
SB 6 (Middle-Class Housing Act, 2022)
• Mechanism: Residential is allowed “by-right” in commercial zones without requiring rezoning; can layer SB 35 or HAA.
• Eligibility:
o Office/retail/parking zone.
o ≥ 50% residential (mixed-use) or full residential.
o Site ≤ 20 acres.
o Located in urbanized area.
o Density requirements: ~20–30 du/ac depending on context. o Prevailing wage and skilled workforce required.
o CEQA review still applies unless other exemption applies.
AB 130 / SB 131 (CEQA Reform, 2025)
• Mechanism: Statutory CEQA exemption for qualifying infill housing; combined with ministerial review.
• Eligibility:
o “Housing development project” (multifamily, mixed-use where ≥ 2/3 floor area residential).
o Located in incorporated city or unincorporated “urban area.” o Not on sensitive sites (wetlands, farmland, fire zones, etc.). o ≤ 20 acres (5 acres for builder’s remedy).
o Meets objective zoning, plan, design standards, including labor terms; must be consistent with general plan and zone.
o Ministerial review—no public hearings, no CEQA.
State Density Bonus Law (§ 65915)
• Mechanism: Provides ministerial entitlement, incentives, concessions, waivers, and including density above zoning limits for projects offering affordable or senior housing. • Eligibility:
o Multifamily development.
o Offers specified % affordable units (low- or very low-income). o May stack incentives (height, density, parking).
o Automatic ministerial review with objective standards.