CITY COUNCIL STAFF REPORT
Meeting: June 21, 2023
Subject
Consider a proposed mixed-use redevelopment project consisting of 34 residential units and approximately 7,482 square feet of commercial space. Project includes the removal and replacement of 51 development trees and a range of site and landscape improvements. Consider the adoption of a Mitigated Negative Declaration for the project, which includes the following discretionary approvals: Application Numbers TM-2021-003, ASA-2021-004, DP-2021-002, U-2021-001, TR-2022-006, EA-2022-005. Applicant(s): Carlson Chan (Prospect Venture LLC); Location: 1655 S. De Anza Blvd., APNs 366-10-061, -126.
Recommended Actions
Staff recommends that the City Council adopt the Resolutions (Attachments A-F) to:
Adopt the Mitigated Negative Declaration (EA-2022-005); Approve the Development Permit (DP-2021-002);
Approve the Architectural and Site Approval Permit (ASA-2021-004); Approve the Use Permit (U-2021-001);
Approve the Tentative Map (TM-2021-003)
Approve the Tree Removal Permit (TR-2022-006)
Project Data:
General Plan Land Use Designation
Commercial/Office/Residential (South De Anza Special Area). Maximum Residential Density – 5 – 15 DU/acre Conceptual Plan Area
South Saratoga-Sunnyvale Road Conceptual Zoning Plan
Zoning Designation
P(CG, Res 5-15)
Lot Area
1.68 Acres
Allowed/Required
Proposed
Maximum units
25 34 (35% density bonus)
Height of Structures
Up to 30 feet
Townhomes – 30 feet
Mixed Use Building – Approximately 38-feet to top of roof ridge, 52-feet top of elevator tower. (Waiver Requested)
Setbacks
Front
Average 50 feet from the face of curb, no less than 35 feet. 35 feet from the face of curb
(Waiver Requested)
Side
N/A
10 feet
Western (Rear) Property Line
15–20-feet for 1st story
30 feet for 2nd story
50 feet for 3rd story
• 15 feet for 1st story
• 30 feet for 2nd story
• 50 feet for 3rd story
Southern (Street side) Property Line
25 feet from face of curb
25 Slope Line
1:1
1:1
Parking
Residential
77 Spaces
68 Spaces
Retail
30 spaces
31 spaces
Total on-site
107 spaces
99 Spaces
Project Consistency with:
General Plan:
Requested density bonus waivers for height
Zoning:
Requested density bonus, parking reduction, and waivers for height and setback Background:
Project Description
The project includes the construction of a mixed-use development on a 1.68 gross-acre development area, consisting of two lots, currently occupied by a retail center anchored by Coach House Liquors.
The primary components of the project are listed below. The development plans for the project can be found in Attachment Q.
Three residential/commercial buildings:
Building A, located closest to S. De Anza Blvd, is a three-story building with 23 apartments, and 7,482 square-feet of ground-floor retail/commercial space.
Building B, located on the northwest corner of the property, is a three-story townhome structure with four residences.
Building C, located closest to Prospect Rd., is a three-story townhome structure with seven residences. 5,182 square feet of Residential Common Open Space
1,657 square feet of Commercial Common Open Space
51 onsite tree replacements for the 51 protected development trees proposed to be removed and/or relocated.
A vesting tentative map to subdivide the two existing properties into twelve new parcels.
The proposed project scope requires the following development review: a Development Permit, an Architectural and Site Approval Permit, a Use Permit, a Tree Removal, and a Vesting Tentative Map. Based on State Density Bonus Law, the applicant is requesting a density bonus, parking reduction, and density bonus waivers for building height, and front setback.
Site and Location Description
Figure 1: Site LocationFigure 1: Site LocationThe 1.68-acre project site, commonly known as the Coach House Center, is located within the South De Anza Special Area of the General Plan, at the southern edge of the City. The nearly 12,000 square-foot leasable area of the existing commercial center includes, in addition to the Coach House, a mix of personal service, restaurant, specialty food and grocery tenants.
Figure 1: Site Location
Figure 1: Site Location
The Coach House Center site is bounded by Prospect Road and the City of Saratoga to the south, S. De Anza Boulevard and the City of San Jose to the east, offices to the north, and a single-family residential neighborhood to the west. (See Figure 1) The specific adjacent uses are:
North: a multi-tenant office building, inlcuding the Santa Clara County Sheriff; West: five single-family residences
South: a gas station, medical offices, and commercial/office across Prospect Road in the City of Saratoga; East (across De Anza Boulevard): a gas station and a variety of commercial uses.
Planning Commission Recommendation
The Planning Commission conducted a public hearing on May 23, 2023, in which they recommended (5-0) that City Council adopt the Mitigated Negative Declaration and adopt resolutions approving the project. The motion to approve included the following modifications to the Mitigated Negative Declaration (EA-2022-005) and the Development Permit (DP-2021-002) resolutions (see Attachments G and H):
Mitigated Negative Declaration (EA-2022-005), as modified:
Require the onsite e-bikes to be consistent with the UL 2849 standards; Locate secure e-bike storage on the ground-floor and indoors; Require a Vehicle Miles Traveled (VMT) Monitoring program; and Ensure bike parking is located in front of the retail shops for improved visibility.
Development Permit (DP-2021-002) as modified.
Remove condition 13 that was redundant to Condition 7; and Amend condition 7 to clarify BMR Unit types and length of BMR restriction, which was included from condition 13 Analysis:
General Plan Compliance
The proposed project consists of a mix of residential and commercial development consistent with the site’s General Plan Land Use Designation of Commercial/Office/Residential. The General Plan designation allows a maximum density of 15 dwelling units per acre, which would allow 25 units for the 1.68-acre site. The proposed number of units, with the State-mandated density bonus, allows an increase of 35% beyond the General Plan maximum, resulting in an allowance of an additional 9 units for a total of 34 units for the site. The project, with the density bonus, proposes 34 units, as permitted by the State Density Bonus Law.
The General Plan’s Community Form Diagram establishes maximum heights and minimum setbacks for development on sites within each of the City’s Special Areas. The proposed development in the South De Anza Special Area has a height limit of 30 feet. The applicant has requested a density bonus waiver of the height for Building A. The waiver requests are discussed in further detail in the Density Bonus Section of this Staff Report.
Staff has evaluated the project’s consistency with the General Plan and concludes that based on the conformance with the General Plan Land Use designation for the site and the minimal environmental impacts of the project as analyzed in the Mitigated Negative Declaration Addendum (further discussed in detail in the Environmental Review section of this Staff Report), the proposed project supports several of the City’s General Plan goals including:
Policy LU-1.3: Land Use in All City-wide Mixed-Use Districts - Encourage land uses that support the activity and character of mixed-use districts and economic goals.
The development is in a mixed-use district within the South De Anza Special Area which contemplates residential, commercial, and office uses on these parcels. The proposed project has a density within the allowed General Plan density allowance and maintains 7,482 square-feet of commercial space.
Policy LU-5.2: Mixed-Use Villages - Where housing is allowed along major corridors or neighborhood commercial areas, development should promote mixed-use villages with active ground-floor uses and public space. The development should help create an inviting pedestrian environment and activity center that can serve adjoining neighborhoods and businesses.
The proposed development is not designated as a neighborhood center in the General Plan. However, the development proposal is along S. De Anza Boulevard which is considered in the General Plan as a major corridor/arterial. Based on the “Mixed-Use Urban Village” guidelines in the General Plan, the site planning for the proposed development locates the retail on the ground floor along S. De Anza Blvd., adjoining an open space area for outdoor seating and gathering. Parking is planned in a podium configuration under the apartments, and not visible from the right-of-way. The setbacks from the single-family neighborhood to the west are consistent with those mandated by the South Saratoga-Sunnyvale Road Conceptual Zoning Plan. The design is high-quality, with pedestrian oriented architecture and planning, and places an emphasis on aesthetics, human scale, and creating a sense of place.
Policy LU-22.6: Building Design - Locate buildings and commercial pads along the street with parking areas to the side and rear. Provide pedestrian scaled elements and active uses including retail, restaurants, and entries along the street. Outdoor plaza and activity areas can be located along the street with sidewalk and street trees to buffer them from through traffic.
In accordance with the “Mixed-Use Urban Village” guidelines in the General Plan, the site planning for the proposed development locates the retail on the ground floor along S. De Anza Blvd., adjoining an open space area for outdoor seating and gathering. Parking is planned in a podium configuration under the apartments, and not visible from the right-of-way. The setbacks from the single-family neighborhood to the west are consistent with those mandated by the South Saratoga-Sunnyvale Road Conceptual Zoning Plan. The design is high-quality, with pedestrian oriented architecture and planning, and places an emphasis on aesthetics, human scale, and creating a sense of place.
Policy LU-22.8: Neighborhood Buffer - Provide building transitions, setbacks and/or landscaping to buffer development from adjoining single-family residential uses.
The setbacks from the single-family neighborhood to the west are consistent with those mandated by the South Saratoga-Sunnyvale Road Conceptual Zoning Plan. The developer is conditioned to maintain as best as possible the existing mature Italian Cypress screening along the westerly property line. Where the shrubs do not exisit, the developer is required to plant screening plantings consistent with the privacy screening required in R1 zones.
HE-1.3.4: Flexible Development Standards - The City recognizes the need to encourage a range of housing options in the community. The City will continue to:
Offer flexible residential development standards in planned residential zoning districts, such as smaller lot sizes, lot widths, floor area ratios and setbacks, particularly for higher density and attached housing developments.
Consider granting reductions in off-street parking on a case-by-case basis for senior housing.
The proposed project applied under the Density Bonus Ordinance, CMC 19.56 . This ordinance allows for flexibility in design standards, density, and parking requirements. The applicant has requested waivers for front setbacks and height, as well as an alternative to the parking standards mandated by the Density Bonus Ordinance.
HE-2.3.7: Density Bonus Ordinance - The City will encourage use of density bonuses and incentives, as applicable, for housing developments which include one of the following:
At least 5 percent of the housing units are restricted to very low-income residents.
At least 10 percent of the housing units are restricted to lower income residents.
At least 10 percent of the housing units in a for-sale common interest development are restricted to moderate income residents.
The project donates at least one acre of land to the city or county large enough for 40 very low-income units; the land has the appropriate general plan designation, zoning, permits, approvals, and access to public facilities needed for such housing; funding has been identified; and other requirements are met. A density bonus of up to 20 percent must be granted to projects that contain one of the following:
The project is a senior citizen housing development (no affordable units required).
The project is a mobile home park age restricted to senior citizens (no affordable units required). For projects that contain on-site affordable housing, developers may request one to three regulatory concessions, which must result in identifiable cost reductions and be needed to make the housing affordable.
The proposed project applied under the Density Bonus Ordinance, CMC 19.56 . The development proposes 20% of its units (on base density) to be below market rate, which includes 12% of the units as Very Low Income. The applicant has requested waivers for front setbacks and height, as well as an alternative to the parking standards mandated by the Density Bonus Ordinance.
Project Compliances:
The Cupertino Municipal Code sets forth the findings for approval of the various permits necessary to approve the proposed project. These provide a framework for making decisions and facilitating an orderly analysis of the review of a project. Listed below are the findings for the three permits sought by the applicant that the City must make in rendering a decision on this project.
A. Development Permit & Use Permit (CMC 19.156.040)
The proposed development and/or use, at the proposed location, will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience; The project is consistent with the land use designations in the General Plan, Zoning Ordinance, and the South Saratoga-Sunnyvale Road Conceptual Zoning Plan. It has been designed to be compatible with and respectful of adjoining land uses, including but not limited to wide setbacks from the single-family residences on the western property line, as well as providing landscaping along the building frontages to help mitigate any massing impacts. Further, the City’s environmental consultant, Place Works, prepared an Initial Study, titled “1655 South De Anza Boulevard Mixed-Use Project Initial Study, October 2022,” which determined that any significant impacts can be reduced to less than significant levels through the inclusion of mitigation measures. Pursuant to this determination, a Mitigated Negative Declaration (MND) was prepared, finding that the City can rely on the adopted Environmental Protection Standards (Chapter 17.04) being applied as Conditions of Approval to minimize any impacts in several areas such as Biological Resources, Cultural Resources, and Noise. The MND further identifies project specific mitigation measures in the areas of Noise and Transportation, to reduce the potential environmental impacts of the project to less than significant levels. Therefore, the project will not be detrimental or injurious to properties or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience.
The proposed development and/or use will be located and conducted in a manner in accord with the Cupertino Comprehensive General Plan, underlying zoning regulations, and the purpose of this title and complies with the California Environmental Quality Act (CEQA).
The General Plan land use designation for the property is Commercial/Office/Residential. The proposed use is consistent with the General Plan in terms of use, density and slope line setback. The applicant is requesting waivers for height and setback, as well as an alternate parking standard as allowed per the Density Bonus Ordinance (CMC 19.56). The proposed development has met the applicable development standards of the South Saratoga-Sunnyvale Road Conceptual Zoning Plan, including rear setbacks adjacent to single-family residential uses. The City’s environmental consultant, Place Works, prepared an Initial Study titled, “1655 South De Anza Boulevard Mixed-Use Project Initial Study, October 2022,” which determined that any significant impacts can be reduced to less than significant levels. Pursuant to this determination, a Mitigated Negative Declaration (MND) was prepared, finding that the City can rely on the adopted Environmental Protection Standards (Chapter 17.04) being applied as Conditions of Approval to minimize any impacts in several areas such as Biological Resources, Cultural Resources, Noise.. The MND further identifies project specific mitigation measures in the in the areas of Noise and Transportation, to reduce the potential environmental impacts of the project to less than significant levels.
The applicant has requested a density bonus. Pursuant to Cupertino Municipal Code Section 19.56.070, before approving an application that includes a request for density bonus, incentive, parking reduction and/or waiver, the decision-making body shall make the following findings, as applicable:
A finding that the residential project is eligible for the density bonus and any incentives, parking reductions or waivers requested.
The application is for a density bonus project that provides for approximately 20% of its base density as Below Market Rate Housing. Since 12% of the units on-site will be for Very Low Income residents, the project is eligible for a 35% density bonus.
A finding that any requested incentive will result in identifiable, financially sufficient, and actual cost based on the financial analysis and documentation provided.
No incentives are requested as part of the project, so the finding is not applicable.
If the density bonus is based all or in part on donation of land, a finding that all requirements included Section 19.56.030C have been met.
The density bonus is not based on the donation of land, so the finding is not applicable.
If the density bonus is based all or in part on the inclusion of a childcare facility, a finding that all requirements included in Section 19.56.030 (D) have been met.
The density bonus is not based on the inclusion of a childcare facility, so the finding is not applicable.
If the density bonus or incentive is based on a condominium conversion, a finding that all the requirements included in Section 19.56.030 (E) have been met.
The density bonus is not based on a condominium conversion, so the finding is not applicable.
If the incentive includes mixed-use development, a finding that all requirements including in Section 19.56.40 (B) (2) have been met.
While the project is a mixed-use development, the density bonus is not based on the mixed-used development as an incentive, so the finding is not applicable.
If a waiver is requested, a finding that that the development standards for which the waivers are requested would have the effect of physically precluding the construction of the housing development with the density bonus and incentives or concessions permitted.
The development standards for the required minimum front setback, and maximum building height would physically preclude the development. These development standard limitations could affect the project by a loss of up to 12 units, which may include those units designated as BMR.
If a reduction in off-street parking standards for an eligible housing development is requested.
Since the development is a density bonus application, the Density Bonus Ordinance, allows a maximum off-street parking standard that can be applied to the housing portion of the development, inclusive of handicapped and guest parking, which this project has met.
Since the applicable findings required above can be made, the decision-making body may deny an application for a waiver only if one of the following written findings, as applicable to each type of application, and supported by substantial evidence, can be made:
That the incentive or concession, or waiver, would have an adverse impact on real property listed in the California Register of Historic Resources; or There are no affected Historic Resources in the vicinity.
That the incentive or concession, or waiver would have a specific, adverse impact upon public health or safety or the physical environment, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the residential project unaffordable to low- and moderate-income households. For the purpose of this subsection, "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the residential project was deemed complete; or The City’s environmental consultant, Place Works, completed the Mitigated Negative Declaration titled, “1655 South De Anza Boulevard Mixed-Use Project Initial Study, October 2022,” whether the project would create any significant impacts. The result was that the Mitigated Negative Declaration (MND) finds that the City can rely on the adopted Environmental Protection Standards (Chapter 17.04) being applied as Conditions of Approval to minimize any impacts in several areas such as Biological Resources, Cultural Resources, Noise. The MND further identifies project specific mitigation measures in the following two areas, Noise and Transportation, to reduce the potential environmental impacts of the project to less than significant levels.
That the incentive or concession, or waiver is contrary to state or federal law.
The requested waivers are not contrary to state or federal law.
B. Architectural and Site Approval Permit (CMC 19.168.030) The proposed development, at the proposed location, will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience; The project is consistent with the land use designations in the General Plan, Zoning Ordinance, and the South Saratoga-Sunnyvale Road Conceptual Zoning Plan. It has been designed to be compatible with and respectful of adjoining land uses, including but not limited to wide setbacks from the single-family residences on the western property line, as well as providing landscaping along the building frontages to help mitigate any massing impacts. Further, the City’s environmental consultant, PlaceWorks, prepared an Initial Study titled “1655 South De Anza Boulevard Mixed-Use Project Initial Study, October 2022” which determined that any significant impacts can be reduced to less than significant levels. Pursuant to this determination, a Mitigated Negative Declaration (MND) was prepared finding that the City can rely on the adopted Environmental Protection Standards (Chapter 17.04) being applied as Conditions of Approval to minimize any impacts in several areas such as Biological Resources, Cultural Resources, Noise . The MND further identifies mitigation measures in the following two areas, Noise and Transportation, to reduce the potential environmental impacts of the project to less than significant levels. Therefore, the project will not be detrimental or injurious to properties or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience.
The proposed development is consistent with the purposes of this chapter, the General Plan, any specific plan, zoning ordinances, applicable planned development permit, conditional use permits, variances, subdivision maps or other entitlements which regulate the subject property including, but not limited to, adherence to the following specific criteria:
Abrupt changes in building scale should be avoided. A gradual transition related to height and bulk should be achieved between new and existing buildings.
The proposed project is the redevelopment of an existing single-story retail building with a new three-story mixed-use apartment and two three-story townhome buildings. The adjacent office building to the north of the property is of similar height, while the townhomes are designed with the appropriate landscape setback of 15-feet from existing residential properties, with the multi-floor elements setback in accordance with the South Saratoga-Sunnyvale Road Conceptual Zoning Plan. There is also landscaping proposed at the perimeter which will help mask some of the bulk of the proposed buildings.
In order to preserve design harmony between new and existing buildings and in order to preserve and enhance property values, the materials, textures and colors of new buildings should harmonize with adjacent development by being consistent or compatible with design and color schemes, and with the future character of the neighborhood and purposes of the zone in which they are situated. The location, height and materials of walls, fencing, hedges and screen planting should harmonize with adjacent development. Unsightly storage areas, utility installations and unsightly elements of parking lots should be concealed. The planting of ground cover or various types of pavements should be used to prevent dust and erosion, and the unnecessary destruction of existing healthy trees should be avoided. Lighting for development should be adequate to meet safety requirements as specified by the engineering and building departments and provide shielding to prevent spill- over light to adjoining property owners.
The design quality of the development is consistent with the high-quality standards specified by the City’s General Plan and Specific Plans and encouraged by City Staff. The mixed-use building meets the design qualities of contemporary design development and the architectural style is consistent and harmonious throughout the development. Potentially unsightly uses, such as loading, trash pickup, and parking have been placed within the buildings away from view of neighboring uses. Utility installation has been designed to be screened by landscaping and or incorporated into the building design. The final lighting for the development will be reviewed as part of the review of the project construction documents to ensure that it meets safety requirements while avoiding spill-over light to adjacent properties. The windows are required to be consistent with the City’s bird- safe ordinance as well.
The number, location, color, size, height, lighting and landscaping of outdoor advertising signs and structures shall minimize traffic hazards and shall positively affect the general appearance of the neighborhood and harmonize with adjacent development.
Signage approval is not included in this application. Any proposed future signage will be required to be consistent with the Zoning Ordinance and all relevant City policies.
With respect to new projects within existing residential neighborhoods, new development should be designed to protect residents from noise, traffic, light and visually intrusive effects by use of buffering, setbacks, landscaping, walls and other appropriate design measures.
The project abuts an existing single-family residential neighborhood to the west. The townhome buildings, by proximity the closest element of the proposed project, have been designed as required by the South Saratoga-Sunnyvale Road Conceptual Zoning Plan. Further, the existing Italian Cypress trees that separate the project site from the single-family homes immediately to the west are conditioned to be maintained, if possible, to provide privacy protection. The project also proposes additional landscaping designed to enhance the screening between these two adjacent sites, reducing privacy concerns.
C. Tentative Map (CMC 18.16.060)
That the proposed subdivision map is consistent with the City of Cupertino General Plan.
The subject property is consistent with the General Plan since the property is permitted to have up to 15 dwelling units an acre and the project qualifies for a density bonus. The proposed development is consistent with the intent of the policies of the General Plan for a high-density, mixed-use development on this site.
That the design and improvements of the proposed subdivision are consistent with the General Plan and specific plans.
The off-site improvements are consistent with the City’s General Plan policies related to pedestrian and bicycle safety by improving Prospect Road, minimizing curb-cuts, and requiring an urban tree canopy within the public right-of-way. The project is also consistent with the General Plan's design requirements, since the project qualifies for waivers for height and front setback.
That the site is physically suitable for the type of development.
The proposed tentative map is compatible with the adjoining land uses and no physical constraints are present that would conflict with anticipated land use development. There are no topographical anomalies that differentiate this property from adjacent properties. The site is located on the valley floor, as well as not listed within any environmentally sensitive zone.
That the site is physically suitable for the proposed density of development.
The subject property is physically suitable in size and shape in conformance to development standards and is appropriately configured to accommodate a multi-unit mixed-used development featuring both rental and owner-occupied housing types.
That the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish and wildlife or their habitat.
The design of the subdivision and proposed improvements are not likely to substantially injure fish and wildlife or their habitat because the property is a developed site and located in an urbanized area where residential land use is allowed.
That the design of the subdivision or the type of improvements associated therewith are not likely to cause serious public health problems.
The proposed subdivision design and improvements are not likely to cause serious public health problems since. the proposed development is consistent with the intent of the policies of the General Plan for a high-density, mixed-use development on this site, and the on-site and off-site improvements required will improve neighborhood walkability through improved sidewalk construction with size-appropriate driveway cuts and street and private trees planting.
That the design of the subdivision and its associated improvements will not conflict with easements acquired by the public at-large for access through or use of property within the proposed subdivision.
No easement or right-of-way currently exists that would be impeded or conflict with the proposed subdivision.
D. Tree Removal Permit (CMC 14.18.180)
The approval authority shall approve a tree removal permit only after making at least one of the following findings:
That the tree or trees are irreversibly diseased, are in danger of falling, can cause potential damage to existing or proposed essential structures, or interferes with private on-site utility services and cannot be controlled or remedied through reasonable relocation or modification of the structure or utility services; Not applicable.
That the location of the trees restricts the economic enjoyment of the property by severely limiting the use of property in a manner not typically experienced by owners of similarly zoned and situated property, and the applicant has demonstrated to the satisfaction of the approval authority that there are no reasonable alternatives to preserve the tree(s).
To accommodate for the new development’s structures, walkways and internal street network to public open spaces, the existing trees cannot be preserved in their locations. The applicant proposes replacement trees throughout the site in conformance with the Municipal Code Ordinance requirements and proposes to locate the replacements where tree coverage is needed, while preserving virtually all the trees that are not within the development area of the project site.
That the protected tree(s) are a detriment to the subject property and cannot be adequately supported according to good urban forestry practices due to the overplanting or overcrowding of trees on the subject property.
Not applicable.
That the mature specimen trees with single trunk between twelve inches DBH and twenty-four inches DBH, or multi-trunk between twenty-four inches DBH and forty-eight inches DBH in R1, A1, A, RHS, and R2 zones will be replaced by planting a replacement tree and/or by contribution to the City’s Tree Fund.
Not applicable.
Density Bonus and Waiver Requests
The project includes requests for a density bonus, parking reduction, and two waivers - one for height of Building A, and the second for the front landscape setback required along S. De Anza.
Section 19.56.070 of the City’s Density Bonus Ordinance (“Findings") requires that, before approving an application which includes a request for a density bonus, waiver or reduction in parking standards, the decision-making body must determine that the proposal is consistent with State Density Bonus Law by making the following findings, as applicable:
That the housing development is eligible for the density bonus requested and any incentives or concessions, waivers or reductions in parking standards requested.
That the development standard(s) for which the waiver(s) are requested would have the effect of physically precluding the construction of the housing development with the density bonus and incentives or concessions permitted, if a waiver is not requested.
The City may not deny a waiver of a development standard that would physically preclude the construction of the project as it is designed, unless the waiver or reduction would have a specific, adverse impact upon health or safety, for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, or would have an adverse impact on any real property that is listed in the California Register of Historical Resources.
Density Bonus
The project is eligible for density bonuses, a parking reduction, and waivers consistent with the City of Cupertino Municipal Code Chapter (CMC) 19.56 Density Bonus and State Density Bonus Law. Table 1, below, provides a breakdown of the housing affordability types proposed and their respective percentage of the development:
Income Level
Below Market Rate Units
% of Development Units
Median Income
1 unit (20% of affordable units)
4%
Low Income
1 unit (20% of affordable units)
4%
Very Low Income
3 units (60% of affordable units)
12%
Table 1: Below Market Rate Units as a Percentage of the Development The project was submitted initially as a preliminary review in January 2020. As such, the development is subject to the 2015 version of the City’s Below Market Rate manual that had a 15% BMR requirement for both rental and ownership projects, resulting in a requirement of 4 BMR units (2 Very Low Income, 1 Low Income and 1 Median Income). As part of the project, the applicant is currently proposing one additional Very Low-Income unit, for a total of 5 BMR units. Since the project is providing 3 Very Low-Income units, or 12% of the development, it is entitled to a 35% Density Bonus under State Law. Therefore, 9 market-rate units are allowed in addition to the base residential yield of 25 units, for a total of 34 units.
Please refer to Attachment N for a full description of the Below Market Rate programming of the development. A condition of approval requires that, prior to occupancy of the units, the applicant shall record a regulatory agreement with the City requiring the designated 1 BMR unit to be for sale to median income households and remain affordable for 99 years, with the 4 BMR rental units be rented to low and very-low-income residents for 99 years.
Density Bonus Parking Reduction
While the Municipal Code requires the project to provide 2.8 parking spaces per townhome and 2 parking spaces per apartment, for a total of 77 residential spaces, projects such as this, which are eligible for a state density bonus, are entitled to a reduction of required residential parking.
Under the City’s Density Bonus Ordinance, the maximum off-street parking standards that can be applied to the housing portion of the development, inclusive of handicapped and guest parking, are shown in Table 3, below. These may include tandem and uncovered parking spaces as well. So in accordance with the density bonus, the City may only require the applicant to provide 68 residential parking spaces under the provisions of state law, which is the amount of residential parking proposed by the applicant.
Table 2: Parking Requirements
Building Use
Parking Standards per Density Bonus Law CMC 19.56.040(C) # of Units or S.f.
Required Spaces
Provided Spaces
Townhomes
Three-bedroom units = 2 onsite spaces/unit
11 22
22 Apartments
2–3-bedroom units = 2 spaces/unit
23 46
46 Sub-total
34 68
68 Retail
1 space per 250 s.f.
7,482 s.f.
30 31
Total
98 99
While the residential component of the project meets the criteria established by the Density Bonus Law, and the project, including its commercial area, is thus only required to provide 98 total spaces , the applicant proposes a total of 99 parking spaces,. one additional retail parking space than required.
Waivers Requested
As a density bonus project, the applicant may submit to the City an unlimited number of waivers, or reduction of development standards, that would have the effect of physically precluding the construction of the proposed project if the waivers were not granted (Government Code Section 65915(e)). For the project, the applicant has requested three (3) waivers, as follows:
Height: The General Plan’s Community Form Diagram requires that development on the project site be limited to 30 feet. The applicant is requesting a waiver to allow Building A to exceed this height as follows:
38 feet at the roofline
52 feet at the elevator tower
Front setback: The South Saratoga-Sunnyvale Road Conceptual Zoning Plan requires a setback from the S. De Anza Boulevard property line that averages 50-feet along the length of the frontage, with no point being less than 35-feet. The applicant is requesting a waiver to allow Building A to have a front setback of 35-feet along the frontage.
As part of the application, the justification of the waivers (height and front setback) was provided by the applicant in a letter, submitted by Brandon Airoli, of Propriis, dated March 9, 2021 (Attachment M). This letter states that the waivers are necessary for several reasons, including:
Height Waiver: Limiting the building to 30-feet would only allow a two-story development, removing the third-floor of apartments, resulting in the loss of 12 units. Further, the roof-level is required to provide common open space for the residents of the apartment building.
Front Setback Waiver: Exhibits indicate that if the front setback requirement was enforced, the Project would lose approximately three units per floor in Building A for an overall combined total loss of at least 6 units, as well as a further reduction in overall parking and retail space.
To approve the waivers, the City must find that the development standards for which the waivers are requested would have the effect of physically precluding the construction of the proposed housing development with the density permitted by State density bonus law. In reviewing the justification letters and exhibits, it is evident that imposing the City’s height and front setback requirements would physically preclude development of Buildings A as proposed.
It should be noted that under State Density Bonus Law, a city may not deny a proposed project based on the theory that another project, with a similar number of units, might be designed differently and accommodated without waivers of development standards.
Compliance with BMR Unit Comparability & Dispersion Requirements The City BMR Manual requires that the BMR Units:
Shall be comparable to market rate units in terms of unit type, number of bedrooms per unit, quality of exterior appearances and overall quality of construction.
Size should be generally representative of the unit sizes within the market-rate portion of residential project.
Interior features and finishes in affordable units shall be durable, of good quality and consistent with contemporary standards for new housing.
The Affordable Housing Plan, Attachment N (as well as sheet A.5.1), shows the proposed unit mix within the three buildings by income level, type, location, and size.
The BMR units on average are the same size and bedroom count as the market-rate units. There is no indication on the plans that the exterior finishes of the BMR units will be any different, or of lesser quality, thanthe market rate units. As such, it is expected that they will be of the same quality; however, as allowed in the BMR manual, the affordable units may have different interior finishes.
Architecture and Site Design
The project site defers to the development standards of the General Plan, and Planned Development “P” zoning designation. The “P” zoning designation is detailed in Cupertino Municipal Code Chapter 19:80 Planned Development Zones. The “P” zoning designation is intended to provide a means of guiding land development or redevelopment within the city that is uniquely suited for planned coordination of land uses and land development. While in the Planned Development zoning district, development must adhere to Multifamily (R3) zoning regulations, as an alternative, applicants can apply for a discretionary review of the project and propose alternative standards unique to the site. The project has incorporated open space requirements similar to those in the Heart of the City Specific Plan, where much of the multifamily development in the City was anticipated and appropriate development standards were adopted to accommodate such development. The applicant proposes open space within the project as indicated in the following table, which is beyond the requirements of those standards in the Heart of the City Specific Plan:
Table 3 Open Space Requirements
Type
Heart of the City Standards
Proposed
Common
5,287 sq. ft. (150 sq. ft. per unit, and 2.5% of gross commercial floor area) 6,839 sq. ft.
Private
60 sq. ft./unit and no dimension less than 6 feet
Apartments: 73 sq. ft. – 177 sq. ft.
Townhomes: 665 sq.ft. – 690 sq.ft.
The proposed development is a modern design that incorporates high-quality material, as well as architectural variation that reflects a “Contemporary” style, which includes fine sand finish stucco, vertical siding long board, and metal guardrails. Buildings have been properly sited to address the street, with the mixed-use building oriented towards S. De Anza Boulevard and townhomes oriented towards Prospect Road or the internal drive private street. The development is additionally reducing the number of driveway curb cuts on its frontage along S. De Anza Blvd and Prospect Rd from two to one, enhancing and improving pedestrian and bicycle in the vicinity. Parking for townhomes has been provided with individual, enclosed garage spaces (some tandem), while parking for the mixed-use building has been provided in both surface level and “podium” type configurations. Overall, the applicant has proposed a project that is appropriate to the location and surrounding context of the site.
The S. Saratoga Sunnyvale Plan requires that there be connections between all the properties along S. DeAnza Boulevard between Wildflower Way and Prospect Road, whenever it is practicable and desirable to provide direct access to traffic signals for more convenient northbound access on S. De Anza Blvd. To implement this policy, a 1984 Use permit for neighboring property to the north required reciprocal ingress/ egress as a condition of approval of that permit with the subject property. With this redevelopment, the City has an opportunity to implement this policy direction and create a driveway connection. Due to concerns from the Sheriff’s office, which currently occupies tenant space in the office building immediately to the north , about creating a connection from a public thoroughfare into the parking lot where the Sheriff’s patrol cars are parked, staff is not recommending that the connection be implemented at this time. However, a condition of approval has been added to this project’s resolutions requiring participation in an ingress/egress easement and creating the physical connection with costs evenly split between the two properties, at such time when the Sheriff is no longer a tenant at the location.
Tree Removal and Replacement
The development proposes to remove and replace 51 protected development trees, virtually all the trees onsite. Almost all those trees that are impacted are non-native species, particularly the abundant Italian Cypress (36 in total) located along the site’s western portion, and acting as a privacy screen with the single-family homes to the west of the project site.
The applicant proposes to replace the removed trees with 51 trees (36 24-inch box, and 15 36-inch box trees of various species). There have been comments from neighbors about retaining this privacy screening and as a result, a condition has been added to retain these mature Italian Cypresses along the western property line (trees 24 – 36, 38-40, and 41 – 54 on Sheet L6) as they provide ample privacy protection to the rear yards of the adjoining single-family residences.
Use Permit
The project proposal requires a Use Permit to allow the development of residential units on a non-Housing Element site.
The Housing Element of the City of Cupertino’s General Plan: Community Vision 2015 – 2040 does not identify this site as a Priority Housing Site. The General Plan, and CMC Chapter 19.80: Planned Development (P) Zones, provide that a residential development not on a Priority Housing Site shall be a conditional use. The applicant proposes to build the project at the maximum allowable density, which is 15 units per acre or 25 total units (not counting density bonus units); therefore, the applicant has submitted a Use Permit application.
Vesting Tentative Map
The project is currently two separate parcels. The application for the Vesting Tentative Map (VTM) proposes to subdivide the two separate lots to create twelve parcels. A condition of approval has been added to the VTM that would require dedication of reciprocal easements ensuring cross-access between the newly-created parcels, for emergency vehicles and public. The approval of a vesting tentative map confers a vested right to proceed with development in substantial compliance with the City's ordinances, policies, and standards in effect at the date the City determines the application is complete.
Housing Accountability Act
The Housing Accountability Act (HAA) (Gov. Code, § 65589.5) limits the ability of a city to deny or impose certain conditions on a housing development project when the project complies with applicable, objective general plan, zoning, and subdivision standards and criteria. This project is a “housing development project” under the HAA because it is a mixed-use development consisting of residential and nonresidential uses with at least two-thirds of the square footage designated for residential use.
When a project complies with objective standards, the HAA allows a city to disapprove the project or to impose a condition that the project be developed at a lower density only if the city finds both of the following, supported by a preponderance of the evidence in the record:
The project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density; and No feasible method to satisfactorily mitigate or avoid the adverse impact exists.
The project meets all applicable objective zoning, General Plan, and subdivision standards. Based on the record, including the findings in the IS/MND, staff, therefore, does not believe the above findings can be made with respect to the proposed project.
Signage
Signage details are not included in this permit application. Staff will review the signage proposal with the property owner at the time the applicant applies for a sign permit through the Building Division.
Other Department/Agency Review
The City’s Building Division, Public Works Department, Environmental Services Division, Sheriff’s Department, Cupertino Sanitary District, and the Santa Clara County Fire Department have reviewed and conditioned the project.
Environmental Review
A Draft Initial Study and Mitigated Negative Declaration (IS/MND) has been prepared for the project (See Attachment O). The Mitigated Negative Declaration (MND) finds that the City can rely on the adopted Environmental Protection Standards (Chapter 17.04) being applied as Conditions of Approval to minimize any impacts in several areas such as Biological Resources, Cultural Resources, and Noise . However, the MND identifies mitigation measures in the following two areas, transportation and noise, to reduce the potential environmental impacts of the project to less than significant levels:
Transportation: To reduce Vehicle Miles Traveled (VMT), the project includes a fair share contribution for bike improvements along Prospect Road, preparation of a School Pool, Bicycle, Car Share Program, and Behavioral Intervention Programs.
Noise Levels: Construction shall comply with the Noise Ordinance and best management practices for noise mitigation, and ensure mechanical equipment selected meet the City’s noise ordinance.
The mitigation measures are also conditions of approval for this project.
The Notice of Intent (NOI) to adopt a MND was placed in the newspaper. In addition, the NOI was mailed to notify neighbors and interested parties that a Draft MND had been prepared which the City intends to adopt. The 20-day Public Review Period for the Draft MND was between October 14, 2022, and November 2, 2022. Please review the response to comment memo (Attachment P).
The Environmental Review Committee (ERC) heard the item at its October 20, 2022, and after the public hearing, recommended that the City Council adopt a Mitigated Negative Declaration (EA-2022-005) on a 4-0-1 (Wu absent) vote with the identified mitigation measures (Attachment A).
Public Outreach and Noticing
The following table is a summary of the noticing done for this project:
Notice of Public Hearing, Site Notice & Legal Ad
Agenda
Site Signage (10 days prior to the hearing)
Legal ad placed in newspaper (at least 10 days prior to the hearing) Public hearing notices were mailed to property owners within 500 feet of the project site (10 days prior to the hearing) Posted on the City’s official notice bulletin board (one week prior to the hearing) Posted on the City of Cupertino’s website (one week prior to the hearing) The applicant has completed community outreach to residents and property owners.
Public Comment
One member of the public commented to staff at the time this staff report being published. Please refer to Attachment R to read the full comments. The residents are concerned with privacy intrusion from the townhome portion of the development. Staff has added a condition in the proposed tree removal permit resolution that requests that the applicant maintain the mature Italian Cypresses along the westerly property if grading allows.
Fiscal Impacts
The project will most likely generate a renewed source of property tax increases as well as required mitigation fees for park in-lieu and traffic impact fees.
Sustainability Impacts
The proposed project has been reviewed by the City’s Sustainability Division and would be consistent with the overall intent of the City’s Climate Action Plan (CAP) to support reductions in GHG emissions and the proposed project would not conflict any goals or measures to reduce GHG emissions in the CAP.
Conclusion
Staff recommends approval of the project, as proposed, because the project and its conditions of approval support the findings for approval of the proposed project, consistent with Chapters 14.18, 18.28, 19.56, 19.156, and 19.168 of the Cupertino Municipal Code. With respect to the development’s height and front setback, evidence in the record demonstrates that the project meets the standards for granting the waivers under the State Density Bonus Law.
Next Steps
The City Council’s decision will be final unless reconsidered within 10 days of the decision. If the project is approved, the applicant may apply for building permits at that time.
Prepared by: Gian Paolo Martire, Senior Planner
Reviewed by: Piu Ghosh, Planning Manager
Luke Connolly, Interim Assistant Director of Community Development Approved by: Benjamin Fu, Director of Community Development ATTACHMENTS:
A. Draft Resolution for EA-2022-005
B. Draft Resolution for DP-2021-002
C. Draft Resolution for ASA-2021-004
D. Draft Resolution for U-2021-001
E. Draft Resolution for TM-2021-003
F. Draft Resolution for TR-2022-006
G. Planning Commission Resolution 2023-08
H. Planning Commission Resolution 2023-09
I. Planning Commission Resolution 2023-10
J. Planning Commission Resolution 2023-11
K. Planning Commission Resolution 2023-12
L. Planning Commission Resolution 2023-13
M. Letter from Brandon Airoli, of Propriis dated March 9, 2021 N. BMR Program 1655 S De Anza Blvd Cupertino Project, Brandon Arioli O. 1655 South De Anza Boulevard Mixed-Use Project Initial Study, Final IS/MND, May 2023 P. Response to Comment Memorandum, Dated May 15, 2023 Q. Site Plan and Renderings
R. Public Comment
394\28\2858561.1
7/7/2020
394\28\2858561.1
7/7/2020
Parking required for the Residential units per the Municipal Code is 2.8 spaces per townhome unit and 2 spaces per apartment for a total of 77 spaces. However, Density Bonus law (Govt. Code Section 65915(p)), as well as CMC 19.56.040(C) allows applicants to propose different parking standards built into state law by number of bedrooms per unit, ranging between 1 space for studio/one-bedroom units to 2.5 spaces for units with 4 or more bedrooms. In some cases, developments may also propose 0.5 space per bedroom, if the housing development meets certain standards outlined by state law. The applicant is entitled to a parking reduction under State Density Bonus Law and has provided 68 parking spaces, consistent with state law.
Due to limitations of state law ((Government Code § 65103.5 (SB 1214)), the distribution of copyrighted material associated with the review of development projects is limited. Plans have been emailed under separate cover to allow the Commissioners to review the proposed plans. Commissioners and Councilmembers cannot share plans with outside parties, including community members. The public is able to make an appointment with the Planning Division to view these plans at City Hall.
Percentages are based on the base density of 15 DU/acre or 25 units, as required by the Density Bonus Law and are consistent with the 20% requirement in the City’s BMR Manual.
HCD sets the maximum moderate-income limit to equal 120 percent of the county’s AMI, adjusted for family size.
Elevator overruns and other mechanical equipment are typically exempt from the height limits of the General Plan if they are centrally located. However, in this case, since the elevator stops on the roof top to provide access to the proposed roof top common open space for the residents of the apartment building, it is counted as height.
EA-2022-005, DP-2021-002, June 21, 2023
ASA-2021-004, U-2021-001 1655 S. De Anza Blvd
TM-2021-003, TR-2022-006 Page 2