Agenda packet — Milpitas City Council, May 19, 2026 (part 4 of 6)

AGENDA ITEM: IX-1

MILPITAS PLANNING COMMISSION

STAFF REPORT

April 8, 2026

APPLICATION: Zoning Text and Map Amendment for Senate Bill 79 – Citywide – P-ZA26-0002: A City-initiated Zoning Text and Map Amendment to amend Title XIII (Zoning) to create a Transit-Oriented Development Overlay zoning district designating areas eligible for Senate Bill 79 (SB 79) height and density standards.

RECOMMENDATION:

Staff recommends that the Planning Commission conduct a public hearing and adopt Resolution No. 26-008, recommending that the City Council approve Zoning Text Amendment No. ZA26-0002, adding a new section to Title XIII, Chapter B.20 of the Milpitas Municipal Code to create a Transit-Oriented Development (-TOD) Overlay zoning district and regulations implementing Senate Bill 79 development standards.

PROJECT LOCATION:

Citywide

PROJECT STAFF:

Lillian VanHua, AICP, Principal Planner
LAND USE:

General Plan Designation:

Zoning District:

ENVIRONMENTAL
REVIEW:

Citywide
Citywide

Statutorily exempt from the California Environmental Quality Act (CEQA) under Government Code Section 65912.160(c)(2) (SB 79).

EXECUTIVE SUMMARY
Senate Bill 79 (SB 79), the Abundant and Affordable Homes Near Transit Act, was signed by Governor Newsom on October 10, 2025, and will take effect on July 1, 2026. Among other things, this state law supersedes local zoning to allow qualifying private housing developments on sites currently zoned for residential, mixed-use, or commercial development within one-half mile of major transit stops. The City of Milpitas has three major transit stops and roughly 3,500 properties that could be impacted by SB 79. While SB 79 significantly limits local discretion, the statute allows a local government to adopt an ordinance to make its zoning code consistent with SB 79.

Staff has reviewed the statute and prepared a Zoning Text and Map Amendment to add a new subsection to Chapter B.20 of Title XIII (Zoning) to create a Transit-Oriented Development (- TOD) Overlay zoning district to implement the SB 79 provisions for eligible properties. By adopting this ordinance, the City would be merely regulating the development SB 79 permits consistent with the law; the City by doing so does not signal its agreement with the Legislature’s adoption of this law or the erosion thereby of thoughtful local planning and control.

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2 BACKGROUND
Senate Bill 79 (SB 79), effective July 1, 2026, establishes statewide minimum residential and height standards for qualifying housing development projects located near major transit stops that a local jurisdiction must comply with and could significantly expand allowable housing capacity in those areas. Table 1 outlines those minimum standards.

The City of Milpitas has three major transit stops and approximately 3,500 properties that would be impacted by SB 79. SB 79 defines a specific type of transit stop called a “transit-oriented development (TOD) stop” segregated into two tiers. Typically, a TOD stop is a major transit station served by heavy rail, high, or very high frequency rail, light rail, or bus rapid transit with a dedicated lane. Table 2 outlines the three major transit stops and their applicable Tier.

Table 1: Development Standards under SB 79

Distance Tier 1 Tier 2
Adjacent to TOD stop
(within 200 feet of
pedestrian access point)
Height: 95 feet
Density: 160 du/ac
Residential FAR: 4.5
Height: 85 feet
Density: 140 du/ac
Residential FAR: 4.0
¼-mile from TOD stop Height: 75 feet
Density: 120 du/ac
Residential FAR: 3.5
Height: 65 feet
Density: 100 du/ac
Residential FAR: 3.0
½-mile from TOD stop Height: 65 feet
Density: 100 du/ac
Residential FAR: 3.0
Height: 55 feet
Density: 80 du/ac
Residential FAR: 2.5

Table 2: Tiers of Transit-Oriented Development Stops in Milpitas

Tier Types of Transit Applied to Milpitas
Tier 1 Heavy Rail
Very high frequency
commuter rail
Milpitas Transit Center
(BART)
Tier 2 Light Rail Transit
High-frequency commuter rail
Bus Rapid Transit (BRT)
VTA Great Mall Light
Rail Station
VTA Alder Light Rail
Station

ANALYSIS
The City of Milpitas has demonstrated its long-standing policy for higher density housing development in its areas served by transit. Since 2002, the City has adopted two Specific Plans (Gateway-Main Street, formerly the Midtown Specific Plan, and Milpitas Metro, formerly Transit Area Specific Plan) that have all increased density around the Tier 1 and Tier 2 TOD Zones. The Metro plan already permits densities in line with SB 79. The area surrounding the Milpitas Transit Center (Tier 1) is zoned MXD3-Metro and allows residential density up to 250 du/acre and building heights up to 275 feet. Moreover, many of the properties immediately adjacent to the Milpitas Transit Center have already been redeveloped with multi-family residential. The Gateway Plan permits densities ranging from 12 to 65 du/acre in the half-mile area surrounding the Great Mall Light Rail Station (Tier 2). Under SB 79, these parcels could be eligible for additional

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3 density. However, many of the properties immediately adjacent to the Great Mall Light Rail Station have also been redeveloped with multi-family residential.

Although many areas eligible for SB 79 have been recently redeveloped due to the City’s Specific Plan efforts, the proposed ordinance amendment would implement the minimum densities and height maximums under SB 79 and establish residential development standards for sites that are not zoned for residential development but subject to SB 79.

Proposed Amendments to the Zoning Ordinance
The proposed ordinance implements SB 79 and includes the following amendments to Title XIII of the Milpitas Municipal Code (MMC):
• Add subsection B.20.040 Transit-Oriented Development Overlay Zone to Chapter B.20 Overlay Zones and Standards to implement California Government Code Sections 65912.155 through 65912.162 (SB 79). Specifically, it establishes the applicability of the TOD overlay under SB 79, incorporates the relevant definitions under the Government Code, and sets forth the minimum residential and height standards for qualifying housing projects.
• Specifically, the following development standards will apply:

Table 3: Transit-Oriented Development (-TOD) Overlay Zone Development Standards

Distance Tier 1 Tier 2
Adjacent to TOD stop (within
200 feet of pedestrian access
point)
Height: 95 feet
Minimum Density: 40 du/ac
Maximum Density: 160 du/ac
Residential FAR: 4.5
Height: 85 feet
Minimum Density: 40 du/ac
Maximum Density: 140 du/ac
Residential FAR: 4.0
¼-mile from TOD stop Height: 75 feet
Minimum Density: 40 du/ac
Maximum Density: 120 du/ac
Residential FAR: 3.5
Height: 65 feet
Minimum Density: 40 du/ac
Maximum Density: 100 du/ac
Residential FAR: 3.0
½-mile from TOD stop Height: 65 feet
Minimum Density: 40 du/ac
Maximum Density: 100 du/ac
Residential FAR: 3.0
Height: 55 feet
Minimum Density: 40 du/ac
Maximum Density: 80 du/ac
Residential FAR: 2.5
• Projects will be required to follow all other development standards as specified for the R4- Metro zoning district.
• For parcels zoned R1-6 (single-family residential), a qualifying housing project will be subject to a minimum density of 30 du/acre and must follow all other development standards as specified under the R4 zoning district.

Proposed Amendments to the Zoning Map
The proposed zoning map amendment (Attachment B) will implement the Transit-Oriented Development (-TOD) Overlay on the City’s Zoning Map, enacted by Title XIII, Chapter A, Section 2.060 of the Milpitas Municipal Code. The TOD Overlay will apply to all parcels within the half-mile areas surrounding the three major transit stops, as defined by Senate Bill 79.

General Plan Conformance
The City’s General Plan is the primary long-range planning document that provides the vision

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4 for the future growth and development of Milpitas. The proposed zoning text and map amendments implementing SB 79 conform to the policies and standards in the City’s General Plan, as demonstrated in the following table:

Table 4: General Plan Consistency

Policy / Actions Conformance
Implementation
Policy IM 1-2:

Require the City’s Zoning Ordinance,
planning documents, master plans,
infrastructure projects, and
development projects to be consistent
with the General Plan and State law.

Consistent. This zoning ordinance and map
amendment will implement recent
legislation (SB 79) and bring the Zoning
Ordinance into conformance with state
housing law.

Land Use Element
Policy LU 2-3:

Allow densities and intensities which
exceed the generally allowed ranges
defined by the underlying land use for
projects utilizing Density Bonus
provisions including bonuses for
senior housing, affordable housing,
and for projects within designated
overlay districts.

Consistent. The intent of SB 79 is to build
more homes near transit to reduce housing
and transportation costs for California
families and promote environmental
sustainability, economic growth, and reduce
traffic congestion. Implementing the TOD
Overlay District will not only bring the
Zoning Ordinance into conformance with
state law but also permit a greater variety of
housing types in densities in areas close to
major transit stops.

Land Use Element
Policy LU 2-2:

Continue to utilize Overlay Zoning
Districts as needed to supplement land
use and zoning standards with
additional allowances and regulations
that reflect and use and policy
objectives for a particular area.

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5 Land Use Element
Policy LU 3-2:

Continue to utilize planning tools
(including specific plans and overlay
districts) that promote transit-oriented
and mixed-use development
objectives near the Milpitas Transit
Center.

Consistent. The TOD Overlay District will
coincide with regional efforts and conform
with state law to allow higher densities near
transit and specifically continue to promote
housing near the Milpitas Transit Center.

Specific Plan Conformance
The proposed zoning ordinance and map amendments are in both the Milpitas Metro (Metro) Specific Plan and Gateway-Main Street (Gateway) Specific Plan area. These designations provide for high-density and medium-density residential uses. As demonstrated in Table 5, the proposed zoning ordinance and map amendments are consistent with the applicable Metro and Gateway-Main Street Specific Plan land use policies.

Table 5: Metro and Gateway-Main Street Specific Plan Consistency

Policy Conformance
Metro Specific Plan Land Use
Policy LU2:

Capitalize on the transit orientation of
the Plan Area to support transit
ridership, reduce traffic congestion
and greenhouse gas emissions, and
support livability.

Consistent. The core of the Metro Plan
Vision is to create a complete and unique
urban neighborhood. The TOD Overlay
District will not only conform with state law
to allow higher densities near transit but also
specifically continue to promote a variety of
housing near the Milpitas Transit Center.

Metro Specific Plan Land Use
Policy LU3:

Provide transit-oriented housing that
is accessible and affordable for a
range of household types and income
levels.

Consistent. The TOD Overlay District will
not only conform with state law to allow
higher densities near transit but also
specifically continue to promote a variety of
housing near the Milpitas Transit Center.

Gateway-Main Street Specific Plan
Guiding Principle:

Integrate a mix of housing types,
scales, and affordability, including
mixed-use, housing for families,
smaller unit homes, live-work, senior
housing, and affordable housing.

Consistent. While the proposed zoning map
and text amendment would only affect the
southern end (South of O’Toole Elms Park
to Curtis Avenue) of the Main Street
District, South Railyards District, Elmwood
District, and the Curtis neighborhood of the
Gateway Plan, the TOD Overlay District
will help implement the Plan’s vision of

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6 Main Street as a walkable, mixed-use urban
village accessible from the surrounding
community. The TOD Overlay District will
allow higher densities near the Great Mall
Light Rail Station, which will continue to
facilitate a variety of housing types at
different affordability levels near transit.

FINDINGS FOR APPROVAL (OR DENIAL)
A finding is a statement of fact relating to the information that the Planning Commission has considered in making a decision. Findings shall identify the rationale behind the decision to take a certain action.

Zoning Ordinance Text and Map Amendments (Milpitas Municipal Code Section XIII, Chapter D.6.050)
a. The proposed Zoning Amendment is consistent with and conforms to the goals and policies of the General Plan.

The proposed text and map amendments are specifically consistent with General Plan Policy IM 1-2, which states to require the City’s Zoning Ordinance, planning documents, master plans, infrastructure projects, and development projects to be consistent with the General Plan and State law. This zoning ordinance and map amendment will implement recent legislation (SB 79) and bring the Zoning Ordinance into conformance with state housing law. The proposed text and map amendments are also consistent with General Plan Policy LU2-3, which states to allow densities and intensities which exceed the generally allowed ranges defined by the underlying land use for projects utilizing Density Bonus provisions including bonuses for senior housing, affordable housing, and for projects within designated overlay districts, as well as General Plan Policy LU2-2, which states to continue to utilize Overlay Zoning Districts as needed to supplement land use and zoning standards with additional allowances and regulations that reflect and use and policy objectives for a particular area. The intent of SB 79 is to build more homes near transit to reduce housing and transportation costs for California families and promote environmental sustainability, economic growth, and reduce traffic congestion. Implementing the TOD Overlay District will not only bring the Zoning Ordinance into conformance with state law but also permit a greater variety of housing types in densities in areas close to major transit stops. The proposed text and map amendments are also consistent with General Plan Policy LU3-1, which states to support regional efforts that promote higher densities near major transit and travel facilities, and reduce regional vehicle miles traveled by supporting active modes of transportation including walking, biking, and public transit; support local and regional land use decisions that promote safe access to and the use of alternatives to auto transit, as well as General Plan Policy LU3-2, which states to continue to utilize planning tools (including specific plans and overlay districts) that promote transit-oriented and mixed-use development objectives near the Milpitas Transit Center. The TOD Overlay District will coincide with regional efforts and conform with state law to allow higher densities near transit and specifically continue to promote housing near the Milpitas Transit Center. b. The proposed Zoning Amendment is consistent with and conforms to the goals and policies

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7 of any Specific Plan, if applicable;

The proposed zoning text and map amendments are consistent with and conform to the goals and policies of the Milpitas Metro Specific Plan (Metro). The core of the Metro Plan Vision is to create a complete and unique urban neighborhood. The proposed zoning text and map amendments are specifically consistent with Metro Specific Plan Land Use Policy LU2 (Transit Orientation), which states to capitalize on the transit orientation of the Plan Area to support transit ridership, reduce traffic congestion and greenhouse gas emissions, and support livability, and LU3 (Housing Diversity and Affordability), which states to provide transit-oriented housing that is accessible and affordable for a range of household types and income levels. The TOD Overlay District will not only conform with state law to allow higher densities near transit but also specifically continue to promote a variety of housing near the Milpitas Transit Center. The proposed zoning text and map amendments are also consistent with and conform to the goals and policies of the Gateway-Main Street Specific Plan (Gateway). While the proposed zoning map and text amendment would only affect the southern end (South of O’Toole Elms Park to Curtis Avenue) of the Main Street District, South Railyards District, Elmwood District, and the Curtis neighborhood of the Gateway Plan, the TOD Overlay District will help implement the Plan’s vision of Main Street as a walkable, mixed-use urban village accessible from the surrounding community. One of the guiding principles of the Gateway Plan is to integrate a mix of housing types, scales, and affordability, including mixed-use, housing for families, smaller unit homes, live-work, senior housing, and affordable housing. The TOD Overlay District will allow higher densities near the Great Mall Light Rail Station, which will continue to facilitate a variety of housing types at different affordability levels near transit.

c. The proposed Zoning Amendment will not adversely affect the public health, safety and welfare;

The proposed zoning text and map amendments will not be detrimental to the public interest, health, safety, convenience, and general welfare, because the action would allow varying residential densities in the TOD Overlay District that are consistent with State law and bring the overall Zoning Ordinance into conformance with State law. They would help facilitate new, higher density and transit-oriented development in appropriate areas, which would serve to advance numerous City goals related to community design, environment, and economic development. Moreover, the City retains authority through any future discretionary approvals to address project-specific health, safety, and welfare concerns in the TOD Overlay District.

d. The proposed Zoning Amendment is in compliance with the provisions of California Environmental Quality Act;

The proposed zoning text and map amendments are not a project under CEQA pursuant to Government Code Section 65912.160(c)(2). Adoption of the ordinance is a statutory implementation action.

e. When considering a reduction of residential density, ensure compliance with California Government Code section 65863 by either finding that the remaining sites identified in the

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8 Housing Element are adequate to accommodate the City’s share of the regional housing need or by identifying sufficient additional, adequate, and available sites with an equal or greater density so that there is no net loss in residential density; and

This finding is not applicable. The zoning text and map amendments are not reducing residential density.

f. The proposed Zoning Amendment would not result in a net loss of potential housing units.

The proposed Zoning Amendment would not result in a net loss of potential housing, as the Project amends the Zoning Ordinance to allow for qualifying housing projects in transit-oriented development zones pursuant to State law (SB 79).

g. The proposed Zoning Amendment is internally consistent with other applicable provisions of this Title
The proposed Zoning Ordinance Text Amendment is instituting changes to the Zoning Ordinance that reflect and conform with recent State law (SB 79). The purpose of the Zoning Ordinance is to promote public health, safety, comfort, and general welfare, and to enable appropriate and orderly development. More specifically, the Zoning Ordinance was adopted to provide standards for orderly growth and development of the city, and guide and control the use of land to provide a safe, harmonious, attractive, and sustainable community, as well as achieve the arrangement of land uses depicted in the General Plan, consistent with the goals and policies of the General Plan. The proposed zoning text amendment will create a Transit-Oriented Development Overlay District that will specifically apply to qualifying housing projects within a half mile of qualifying transit- oriented development stops. The amendments are consistent with the Zoning Ordinance as a whole and do not create any internal inconsistencies.

h. The affected site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provision of public and emergency vehicle access and public services and utilities, to accommodate the uses and development densities or intensities allowed in the proposed new zone; and

The proposed Zoning Map Amendment is physically suitable in terms of design, location, shape, size, operating characteristics, and the provision of public and emergency vehicle access and public services and utilities, to accommodate the uses and development densities or intensities allowed in the proposed zone. The TOD Overlay would simply bring the Zoning Ordinance and Map into conformance with development density ranges into consistency with State law (SB 79). They would help facilitate new, higher density and transit-oriented development in appropriate areas, which would serve to advance numerous City goals related to community design, environment, and economic development. The TOD Overlay would also establish residential development standards for sites that are not zoned for residential development but subject to SB 79. Moreover, the City retains authority through any future discretionary approvals to address project- specific health, safety, and welfare concerns in the TOD Overlay District. If projects are

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9 eligible for streamlining under State law, they would still be subject to the City’s Objective Design Standards.

i. If located within or adjacent to residential areas, the requested zone change is compatible with the character of the residential neighborhood.

The proposed zoning map amendment would create a TOD Overlay District in the half mile areas around three transit-oriented development stops within the City. The proposed map amendment is generally compatible with the character of the residential neighborhoods. The TOD Overlay would bring the Zoning Ordinance and Map into conformance with development density ranges into consistency with State law (SB 79). They would help facilitate new, higher density and transit-oriented development in appropriate areas, which would serve to advance numerous City goals related to community design, environment, and economic development. The TOD Overlay would also establish residential development standards for sites that are not zoned for residential development but subject to SB 79. Moreover, the City retains authority through any future discretionary approvals to address project-specific health, safety, and welfare concerns in the TOD Overlay District. If projects are eligible for streamlining under State law, they would still be subject to the City’s Objective Design Standards.

ENVIRONMENTAL REVIEW
The proposed Zoning Text and Map amendments are statutorily exempt from the California Environmental Quality Act under Government Code Section 65912.160(c)(2). This is an ordinance that is implementing Senate Bill 79.

PUBLIC COMMENT/OUTREACH
A notice of this hearing was published in the Milpitas Post on March 27, 2026, and posted at City Hall and on the City's website at www.milpitas.gov. At the time of writing this report, no comments have been received regarding the proposed zoning text and map amendment.

STAFF RECOMMENDATION
Staff recommends that the Planning Commission:

1. Open the Public Hearing to receive comments;

2. Close the Public Hearing; and

3. Adopt Resolution No. 26-008, recommending that the City Council approve Zoning Text Amendment No. ZA26-0002, adding a new section to Title XIII, Chapter B.20 of the Milpitas Municipal Code to create a Transit-Oriented Development Overlay (-TOD) zoning district and regulations implementing Senate Bill 79 development standards.

ATTACHMENTS:

A: Planning Commission Resolution No. 26-008
Exhibit 1: Draft Zoning Text and Map Amendment Ordinance B: Draft Zoning Map

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Resolution No. 26-008 Page 1

RESOLUTION NO. 26-008

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MILPITAS

RECOMMENDING THAT THE CITY COUNCIL APPROVE ZONING TEXT AND MAP AMENDMENT ZA26-0002, ADDING A NEW SECTION TO TITLE XIII, CHAPTER B.20 OF

THE MILPITAS MUNICIPAL CODE TO CREATE A TRANSIT-ORIENTED

DEVELOPMENT (-TOD) OVERLAY ZONING DISTRICT AND REGULATIONS IMPLEMENTING SENATE BILL 79 DEVELOPMENT STANDARDS

WHEREAS Senate Bill 79 (“SB 79”) was signed on October 10, 2025, and codified as California Government Code Sections 65912.155 et seq., and states, among other things, that notwithstanding local law to the contrary, a housing development project, as defined, within a specified distance of a transit oriented development stop, as defined, is an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with applicable requirements, as specified; and

WHEREAS, SB 79 is anticipated to affect development near three (3) transit-oriented development stops within the Milpitas; and
WHEREAS, California Government Code Sections 65300 et seq. require each city to prepare and adopt a comprehensive, long-term general plan for the physical development of the county or city; and

WHEREAS, on March 9, 2021, the Milpitas City Council adopted the Milpitas 2040 General Plan, updating and revising the land use policies, goals, and objectives contained in the City’s previous General Plan; and

WHEREAS, on September 2, 2025, the Milpitas City Council adopted a comprehensive update to the zoning ordinance, including the addition of a new Title XIII – Zoning to the Milpitas Municipal Code and amendments to various other sections of the Municipal Code for consistency with the updated Zoning Ordinance and amended the Zoning Map of the City of Milpitas to achieve consistency between the updated Zoning Ordinance and Zoning Map; and

WHEREAS, pursuant to the City’s General Plan and the implementing Zoning Ordinance, the following zoning districts allow residential, mixed, or commercial development: General Commercial (C2), Metro Business Park Research and Development – Limited Residential (BPRD-R-Metro), Metro Multi-Family High Density Residential (R3-Metro), Metro Multi-Family Very High Density Residential (R4-Metro), Metro Urban Residential (R5-Metro), Metro High Density Mixed Use (MXD2-Metro), Metro Very High Density Mixed Use (MXD3-Metro), Multi-Family (R3), Multi-Family Very High Density (R4), Single-Family (R1), Mixed Use (MXD), and Main Street Mixed-Use (MS-MU); and

WHEREAS, pursuant to the City’s General Plan and the implementing Zoning Ordinance, the following zoning districts are not zoned for residential, mixed, or commercial development: Heavy Industrial (M2), Institutional (I), Park and Public Open Space (POS), Business Park Research and Development (BPRD), and Metro Business Park Research and Development (BPRD-Metro); and

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Resolution No. 26-008 Page 2
WHEREAS, California Government Code Section 65912.160 provides that a local government may enact an ordinance to make its zoning code consistent with Senate Bill 79 and that such an ordinance is not considered a project subject to environmental review pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code (the California Environmental Quality Act or “CEQA”); and
WHEREAS, without waiving its objection to the California Legislature’s ill-conceived decision to override local control and planning, the City wishes to enact this ordinance to regulate the development that SB 79 permits; and
WHEREAS, consistent with California Government Code Section 65912.160(d), l at least 14 days prior to the adoption of this ordinance, the City submitted a draft of this ordinance to the California Department of Housing and Community Development (“HCD”) and received and acted upon any feedback the department received from HCD; and
WHEREAS, the Planning Commission made and accepted as its own the findings set forth in this resolution; and
WHEREAS, the Planning Commission is an advisory body to the City Council; and

WHEREAS, the City Council is the final authority on General Plan, Specific Plan, and Zoning amendments, including amendments to the Land Use Map and Zoning Map; and WHEREAS, on April 8, 2026, the Planning Commission held a duly noticed public hearing on the Zoning Text and Map Amendments related to the Transit-Oriented Development (-TOD) Overlay zoning district and implementation of Senate Bill 79 (SB 79), considered all written and oral reports of staff and public testimony on the matter, and such other matters as are reflected in the record of this matter; and
WHEREAS, the Planning Commission has considered all the written and oral testimony presented at the public hearing in making its decision; and

WHEREAS, all legal prerequisites to the adoption of this resolution and the Planning Commission’s review, recommendation, and approval of the Zoning amendments and CEQA review contained herein have been met.

NOW THEREFORE, the Planning Commission of the City of Milpitas hereby finds, determines, and resolves as follows:

SECTION 1. Recitals

The Planning Commission has duly considered the full record before it, which may include but is not limited to such things as the City staff re port, testimony by staff and the public, and other materials and evidence submitted or provided to the Planning Commission. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2. CEQA Finding

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Resolution No. 26-008 Page 3

The Planning Commission finds, pursuant to Government Code Section 65912.160(c)(2), the provisions of this zoning ordinance text and map amendment do not constitute a project and therefore are statutorily exempt from the California Environmental Quality Act.

SECTION 3. Findings for Zoning Ordinan ce Text and Map Amendment (Milpitas Municipal Code, Subsection XIII-D.6.050)

The Planning Commission finds based upon the full record before it that all findings and prerequisites required for the Zoning Text and Zoning Map amendments proposed have been met, including those set forth in the Government Code, including Sections 65850 et seq., and the Milpitas Municipal Code, including Subsection XIII-D.6. The Planning Commission makes the following further and specific findings based on the evidence in the public record in support of Zoning Text and Zoning Map Amendment No. ZA26-0002:

a) The proposed Zoning Amendment is consistent wi th and conforms to the goals and policies of the General Plan;

Implementing the TOD Overlay District will not only bring the Zoning Ordinance into conformance with state law but also permit a greater variety of housing types in densities in areas close to major transit stops. The proposed text and map amendments are also consistent with General Plan Policy LU3-1, which states to support regional efforts th at promote higher densities near major transit and travel facilities, and reduce regional vehicle miles traveled by supporting active modes of transportation including walking, biking, and public transit; support local and regional land use decisions that promote safe access to and the use of al ternatives to auto transi t, as well as General Plan Policy LU3-2, which states to continue to utilize planning t ools (including specific plans and overlay districts) that promote transit-oriented and mixed-use development objectives near the Milpitas Transit Center. The TOD Overlay District will coincide with regional efforts and conform with state law to allow higher densities near transit and specifically continue to promote housing near the Milpitas Transit Center.

b) The proposed Zoning Amendment is consistent with and conforms to the goals and policies of any Specific Plan, if applicable;

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Resolution No. 26-008 Page 4

The proposed zoning text and map amendments are consistent with and conform to the goals and policies of the Milpitas Metro Specific Plan (Metro). The core of the Metro Plan Vision is to create a complete and unique urban neighborhood. The propose d zoning text and map amendments are specifically consistent with Metro Specific Plan Land Use Policy LU2 (Transit Orientation), which states to capitalize on the transit orientation of the Plan Area to support transit ridership, reduce traffic congestion and greenhouse gas em issions, and support livability, and LU3 (Housing Diversity and Affordability), which states to provide transit-oriented housing that is accessible and affordable for a range of household types and income levels. The TOD Overlay District will not only conform with state law to allow higher densities near transit but also specifically continue to promote a variety of housing near the Milpitas Transit Center. The pr oposed zoning text and map amendments are also consistent with and conform to th e goals and policies of the Gatew ay-Main Street Specific Plan (Gateway). While the proposed zoning map and text amendment would only affect the southern end (South of O’Toole Elms Park to Curtis Avenue) of the Main Street District, South Railyards District, Elmwood District, and the Curtis neighborhood of the Gateway Plan, the TOD Overlay District will help implement the Plan’s vision of Main Street as a walkable, mixed-use urban village accessible from the surrounding community. One of the guiding principles of the Gateway Plan is to integrate a mix of housing types, scales, and affordability, including mixed-use, housing for families, smaller unit homes, live-work, senior housing, and affordable housing. The TOD Overlay District will allow higher densities near the Great Mall Light Rail Station, which will continue to facilitate a variety of housing types at different affordability levels near transit.

c) The proposed Zoning Amendment will not be detr imental to the public interest, health, safety, convenience, and general welfare;

The proposed zoning text and map amendments will not be detrimental to the public interest, health, safety, convenience, and general welfare, because the action would allow varying residential densities in the TOD Overlay District that are consistent with State law and bring the overall Zoning Ordinance into conformance State law. They would help f acilitate new, higher density and transit-oriented development in appropriate areas, which would serve to advance numerous City goals related to community design, environment, and economic deve lopment. Moreover, the City retains authority through any future discretionary approvals to address project-specific health, safety, and welfare concerns in the TOD Overlay District.

d) The proposed Zoning Amendment is in compliance with the provisions of California Environmental Quality Act;

The proposed zoning text and map amendments are not a project under CEQA pursuant to Government Code Section 65912.160(c)(2). Adoption of the ordinance is a statutory implementation action.

e) When considering a reduction of residential density, ensure compliance with California Government Code Section 65863 by either finding that the remain ing sites identified in the Housing Element are adequate to accommodate the City’s share of the re gional housing need or by identifying sufficient additional, adequate, and available sites with an equal or greater density so that there is no net loss in residential density;

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Resolution No. 26-008 Page 5
This finding is not applicable. The zoning text a nd map amendments are not reducing residential density.

f) The proposed Zoning Amendment would not result in a net loss of potential housing units;

g) The proposed Zoning Ordinance Text Amendment is internally consistent with other applicable provisions of this Title;

The proposed Zoning Ordinance Text Amendment is instituting changes to the Zoning Ordinance that reflect and conform with recent State law (SB 79). The purpose of the Zoning Ordinance is to promote public health, safety, comfort, and general welfare, and to enable appropriate and orderly development. More specifically, the Zoning Ordinance was adopted to provide standards for orderly growth and development of the city, and guide a nd control the use of land to provide a safe, harmonious, attractive, and sustainable community, as well as achieve the arrangement of land uses depicted in the General Plan, consistent with the goals and policies of the General Plan. The proposed zoning text amendment will create a Transit-Orien ted Development Overlay District that will specifically apply to qualifying housing projects within a half mile of qualifying transit-oriented development stops. The amendments are consistent with the Zoning Ordinance as a whole and do not create any internal inconsistencies.

h) The affected site is physically suitable in ter ms of design, location, shape, size, operating characteristics, and the provision of public and emergency vehicle access and public services and utilities, to accommodate the uses and development densities or intensities allowed in the proposed new zone; and

The proposed Zoning Map Amendment is physically su itable in terms of design, location, shape, size, operating characteristics, and the provision of publ ic and emergency veh icle access and public services and utilities, to accommodate the uses and development densities or intensities allowed in the proposed zone. The TOD Overla y would simply bring the Zoning Ordinance and Map into conformance with development density ranges into consistency with State law (SB 79). They would help facilitate new, higher density and transit-oriented development in appropriate areas, which would serve to advance numerous City goals related to community design, environment, and economic development. The TOD Overlay would also establish residential development standards for sites that are not zoned for residential development but subject to SB 79. Moreover, the City retains authority through any future discretionary approvals to address project-specific health, safety, and welfare concerns in the TOD Overlay District. If projects are eligible for streamlining under State law, they would still be subject to the City’s Objective Design Standards.

i) If located within or adjacent to residential areas, the requested zone change is compatible with the character of the residential neighborhood.

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Resolution No. 26-008 Page 6
The proposed zoning map amendment would create a TOD Overlay District in the half mile areas around three transit-oriented development stops w ithin the City. The proposed map amendment is generally compatible with the character of th e residential neighborhoods. The TOD Overlay would bring the Zoning Ordinance and Map into conforman ce with development density ranges into consistency with State law (SB 79). They would he lp facilitate new, higher density and transit- oriented development in appropriate areas, which would serve to advance numerous City goals related to community design, environment, and economic development. The TOD Overlay would also establish residential development standards for site s that are not zoned for residential development but subject to SB 79. Moreover, the City retains authority through any future discretionary approvals to address project-specific health, safety, and welf are concerns in the TOD Overlay District. If projects are eligible for streamlining under State law , they would still be subject to the City’s Objective Design Standards.

SECTION 4: Planning Commission Action

The Planning Commission of the City of Milpitas hereby adopts Resolution No. 26-008 recommending that the City Council approve Zoning Amendment No. ZA26-0002 and adopt the proposed ordinance in Exhibit 1 hereto, to create a Transit-Oriented Development (-TOD) Overlay zoning district and implement Senate Bill 79 deve lopment standards, based on the a bove Findings and the full record before it.

PASSED AND ADOPTED at a regular meeting of the Planning Co mmission of the City of Milpitas on April 22, 2026.

Parveen Gupta, Chair

TO WIT:

I HEREBY CERTIFY that the following resolution was duly adopted at a regular meeting of the Planning Commission of the City of Milpitas on April 22, 2026, and carried by the following roll call vote:

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Resolution No. 26-008 Page 7

COMMISSIONER AYES NOES ABSENT ABSTAIN
Parveen Gupta
Michael Caulkins
Alexander Galang
Dipak Awasthi
Chia Ling Kong
Dawn Brown
Olania Castillo

EXHIBITS
1: Draft Zoning Text and Map Amendments Ordinance
Exhibit A: Zoning Map Amendment

X
X
X
X
X
X
X

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Certificate Of Completion
Envelope Id: D03BBB92-3C8B-4645-B2BF-1176162DEABA Status: Completed Subject: Complete with Docusign: Attachment A - PC Reso 26-008 Final (DocuSign).pdf Source Envelope:

Document Pages: 7 Signatures: 1 Envelope Originator:

Certificate Pages: 5 Initials: 0 Liz Medina
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 E Calaveras Blvd
Milpitas, CA 95035
[email protected]
IP Address: 76.126.29.175
Record Tracking
Status: Original
April 22, 2026 | 20:35
Holder: Liz Medina
[email protected]
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Signer Events Signature Timestamp
Chair Parveen Gupta
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Signature Adoption: Drawn on Device
Using IP Address: 147.185.47.130
Sent: April 22, 2026 | 20:38
Viewed: April 24, 2026 | 10:59
Signed: April 24, 2026 | 10:59
Electronic Record and Signature Disclosure:

Accepted: April 24, 2026 | 10:59
ID: 421e401c-294f-4823-8397-93125d0ea0d4
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Lillian VanHua
[email protected]
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Sent: April 24, 2026 | 10:59
Electronic Record and Signature Disclosure:

Accepted: March 10, 2026 | 11:12
ID: d465b10b-9c07-4c2c-a48c-817fc374d4d1
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Envelope Sent Hashed/Encrypted April 22, 2026 | 20:38
Certified Delivered Security Checked April 24, 2026 | 10:59 Signing Complete Security Checked April 24, 2026 | 10:59 Completed Security Checked April 24, 2026 | 10:59

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Payment Events Status Timestamps
Electronic Record and Signature Disclosure

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CITY OF MILPITAS
Planning Commission

April 22, 2026 Planning Commission Meeting Minutes Page 1

MEETING MINUTES
7:00pm
APRIL 22, 2026

CITY COUNCIL CHAMBERS,
455 E CALAVERAS BLVD, MILPITAS, CA
and
via TELECONFERENCE (Zoom Webinar)

CALL TO ORDER Chair Gupta called the meeting to order at 7:00 pm.

PLEDGE OF ALLEGIANCE Commissioner Caulkins led the pledge of allegiance.

ROLL CALL Recording Secretary Medina called the roll.

PRESENT: Chair Gupta, Vice Chair Kong, Awasthi, Caulkins, Galang, and Castillo.

ABSENT: Brown

STAFF: Jay Lee, Christopher Creech, Lillian VanHua, and Elizabeth Medina.

CONFLICT OF

INTEREST/CAMPAIGN

CONTRIBUTION

DECLARATION

Assistant City Attorney Christopher Creech asked if any member of the commission had any personal or financial conflict of interest related to any of the items on the agenda.

APPROVAL OF THE

MEETING AGENDA

By motion, approve the meeting agenda for April 22, 2026.

Motion/Second Caulkins/Awasthi
Motion carried by a vote of AYES: 6 NOES: 0

APPROVAL OF THE

MEETING MINUTES

By motion, approve the meeting minutes for April 8, 2026.

Motion/Second Kong/Caulkins
Motion carried by a vote of AYES: 5 ABSTAIN: 1 (Galang)

ANNOUNCEMENTS

Planning Director Lee announced that a special Planning Commission meeting will be held on May 6 at 6:00 p.m. at the usual meeting location. This meeting is in addition to the Commission’s regularly scheduled meetings, which occur on the second and fourth Wednesdays of each month at 7:00 p.m. He noted that there will be a total of three meetings in May due to the volume of agenda items. No further announcements were made.

PUBLIC FORUM Chair Gupta invited members of the public to address the commission, and there were none.

PUBLIC HEARING

IX-1 ZONING MAP AND TEXT AMENDMENT FOR SB79 – CITYWIDE – P-ZA26- 0002: A City-initiated Zoning Text and Map Amendment to amend Title XIII (Zoning) to create a Transit -Oriented Development Overlay district designating areas eligible for Senate Bill 79 (SB 79) height and density standards. The proposed zoning map and text amendments are statutorily exempt from the California Environmental Quality Act under Government Code Section 65912.160(c)(2) (SB 79).

*This item was continued from the April 8 Planning Commission meeting.

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April 22, 2026 Planning Commission Meeting Minutes Page 2

(24:55) Project Manager Lillian VanHua addressed commissioners' clarifying questions.

Commissioner Caulkins thanked staff for explaining the rationale behind the proposed changes and commended the inclusion of the City’s RHNA goals in the proposal.

Vice Chair Kong expressed appreciation for both the presentation and the pre-meeting briefing, noting it helped provide important context. Vice Chair Kong inquired about the relationship between the Metro Specific Plan and the proposed TOD Overlay, specifically where the two may overlap and whether applicants could choose between the two regulatory frameworks. Staff explained that overlap occurs within areas near the Milpitas BART Station, where existing zoning already allows higher densities than those required under SB 79, reducing any incentive to utilize the state law.

Vice Chair Kong also raised concerns about the potential loss of employment - generating land, particularly near transit areas, and supported maintaining protections for industrial zones. Vice Chair Kong noted that if future clarification of state law removes exemptions for industrial land, the City should consider updating the ordinance accordingly.

Chair Gupta sought clarification on SB 79 requirements, including minimum and maximum density standards. Staff explained that SB 79 establishes minimum density requirements and limits on how low jurisdictions may set maximum densities, rather than prescribing absolute maximums. Chair Gupta also asked about compliance with objective design standards, to which staff confirmed that existing zoning standards would apply to qualifying projects.

Additional questions were raised regarding infrastructure capacity and potential impacts on traffic, schools, and utilities. Staff indicated that a comprehensive infrastructure analysis was not conducted as part of the ordinance; however, individual projects would be subject to CEQA review on a case -by-case basis, which would evaluate such impacts.

Lastly, Chair Gupta asked whether a project proposing a density lower than the City’s adopted minimum, but consistent with SB 79, would be considered. Staff clarified that if the ordinance is adopted, such a project would not comply with the City’s standards and would not be approved. No further questions were raised, and the Chair opened the item for public comment.

Triana Crighton, Senior Transportation Planner with VTA and a Milpitas resident, provided a supportive public comment. Speaking on behalf of VTA, she commended City staff for their work on the item. She noted that VTA has been closely monitoring the implementation of SB 79 and actively engaging with affected jurisdictions to better understand the legislation and its impacts on cities, transportation systems, and transit agencies.

She stated that VTA aims to serve as a resource and partner by providing technical assistance, including support with mapping and interpretation of the law. While acknowledging the complexity and evolving nature of SB 79, including anticipated cleanup legi slation, she expressed that the bill has the potential to support the development of vibrant, transit-oriented communities, increase ridership, and reduce greenhouse gas emissions and single-occupancy vehicle trips.

She concluded by reiterating VTA’s commitment to ongoing collaboration and support for the City of Milpitas and other affected agencies.

Chair Gupta closed the Public Forum.

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April 22, 2026 Planning Commission Meeting Minutes Page 3

During deliberation, Commissioner Awasthi sought clarification regarding the relationship between SB 79 and the City’s proposed ordinance, specifically whether the City could establish its own minimum density standards. Assistant Attorney Creech explained that SB 79 allows local jurisdictions to establish minimum densities, and the City’s ordinance is consistent with and permitted under state law.

A motion was made to adopt Resolution No. 26-008 recommending that the City Council approve Zoning Text Amendment No. ZA26-0002, adding a new section to the Municipal Code to establish a Transit-Oriented Development (TOD) Overlay District implementing SB 79 development standards.

Prior to the vote, Vice Chair Kong inquired about the potential to include language addressing the exclusion of industrial zones. Assistant Attorney Creech explained clarified that the proposed ordinance already reflects SB 79 provisions, which apply only to residential, commercial, and mixed-use zones, and therefore exclude industrial zones. Counsel further noted that any future changes to state law could necessitate amendments to the ordinance.

Following clarification, no amendments to the motion were made. The motion was seconded and approved by roll call vote.

Recommendation: Staff recommends that the Planning Commission conduct a public hearing and adopt Resolution No. 26 -008, recommending that the City Council approve Zoning Text Amendment No. ZA26-0002, adding a new section to Title XIII, Chapter B.20 of the Milpitas Municipal Code to create a Transit-Oriented Development Overlay district and regulations implementing Senate Bill 79 development standards.

Motion/Second Galang/Castillo
Motion carried by a vote of AYES: 6 NOES: 0

NEW BUSINESS

NO ITEMS.

ADJOURNMENT Chair Gupta adjourned the meeting at 8:16 pm

Meeting Minutes submitted by
Planning Commission Secretary Elizabeth Medina

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CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Adopt a Resolution Approving a Site Development Permit Amendment, Vesting Tentative Map, Conditional Use Permit Amendment, Density Bonus Permit, and Development Agreement for 109 Townhomes and 10 Accessory Dwelling Units at 1320 McCandless Dr. (Staff Contact: Jay Lee, Planning Director, 408-586- 3077)
Category: Public Hearings-Community Development
Meeting Date: 5/19/2026
Recommendation: (1) Consider the project to be categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15182 (Residential Projects Pursuant to a Specific Plan); (2) Adopt a resolution approving Site Development Permit Amendment No. P-SA25-0002, Vesting Tentative Map No. P-TM26-0001, Conditional Use Permit Amendment No. P- UA25-0003, Density Bonus Permit No. P-DB26-0001, and Development Agreement No. P-DA26-0001, subject to the attached Conditions of Approval; (3) Waive reading beyond the title and Introduce an Ordinance approving a Development Agreement between the City of Milpitas and Fields CH Owner, LLC and Milpitas – District 2 Associates, LLC.

BACKGROUND:

In 2008, the City Council adopted the Transit Area Specific Plan (TASP). The TASP area encompasses 437 acres and forecasts the development of approximately 7,109 residential dwelling units, 287,075 square feet of retail space, 993,843 square feet of office use and up to 350 hotel rooms. The TASP includes goals, policies, and development standards to guide construction within the area, which includes sub-districts in order to address the area’s unique characteristics.

In 2011, Integral Communities submitted a master-planned mixed-use development, known as The District, which includes multiple land areas for retail, commercial, and high-density residential development. Integral Communities subsequently sold The District project to Lyon Living, which is completing the development of a portion of The District, referred to as The Fields, comprised of four separate mixed-use areas located near the intersection of Great Mall Parkway and McCandless Drive, also referred to by the City as The District – Lot 1, Lot 2, Lot 3, and Lot 4, and by the applicant as Turing, Graham, Elion, and Gideon, respectively.

In November 2015, the City of Milpitas approved multiple entitlements for a major portion of The Fields, including Site Development Permit No. SD15-0006 and Conditional Use Permit No. UP15-0010, as part of a master-planned development comprised of six planning areas, each developed with a mix of multi-family residential and residential units, including:

• District Lot 2: A 218-unit multi-family residential development with approximately 3,480 square feet of retail and commercial uses, mapped pursuant to Tentative Map No. TM11-0002 approved March 20, 2012
• District Lot 3: a 175-room hotel and associated uses as approved under SD15-0006 and UP15-0010 • District Lot 4: A 173-unit multi-family residential development with approximately 13,941 square feet of retail, mapped pursuant to Tentative Map No. TM11-0002 approved on March 20, 2012

In 2021, the Planning Commission approved Site Development Permit Amendment No. SA20-0004 and an

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amendment to Conditional Use Permit No. UP15-0010 on the Project site. That amendment modified the previously approved development density, uses, and architecture, including decreasing the total number of residential dwelling units from 423 to 357, decreasing the total number of hotel rooms from 175 to 162, decreasing the amount of commercial space from 59,135 square feet to 25,179 square feet, decreasing the size of the rooftop amenity deck from 49,240 square feet to 18,225 square feet, and reducing the building’s height from 130 feet to 83 feet for the hotel and 90 feet for the mixed-use buildings

On February 7, 2023, the Milpitas City Council adopted the Metro Plan, which superseded the Transit Area Specific Plan, originally adopted in 2008. The new Metro Plan expands the geographic area of the Plan from 437 acres to 510 acres and increases housing capacity by 7,000 additional units while addressing the need for greater commercial and employment development. The Metro Plan reorganizes the original six TASP subdistricts into five Metro districts: Great Mall, McCandless, Tango, Piper, and Innovation District. The proposed Project is located within the McCandless District of the Metro Plan, which is characterized by high- density mixed-use development along larger, busier streets and by lower density townhouse development in the central area of The District.

In 2025, Lyon Living (the “Applicant”) submitted an application to develop 109 multi-family townhomes and 10 Accessory Dwelling units on a vacant 5.49-acre site located in the MXD2-Metro Zoning District at 1320 McCandless Drive, generally located at the intersection of Great Mall Parkway and McCandless Drive. The current application proposes a further amendment to Site Development Permit No. SD15-0006 and Conditional Use Permit (CUP) No. UP15-0010, as amended by SA20-0004. These changes include the following and are summarized in Table 1 below.

Table 1: Summary of Lot 3 Entitlements
Element Originally Approved
(2015)
Amended by SA20-
0004
Proposed
Residential Units 423 apartments 357 apartments 109 townhomes + 10 ADUs
Hotel Rooms 175 162 None
Retail/Office
Space
59,135 square feet 25,179 square feet 3,324 square feet of live/work area (9 units
total)
Rooftop Amenity
Deck
49,240 square feet 18,225 square feet None
Hotel Building
Height
130 feet 83 feet N/A
Mixed-Use or
Residential
Building Height
130 feet 90 feet 36 feet – 49 feet

The current application also requires the following entitlements:

• Vesting Tentative Map: The proposed Project includes the development of the site for for-sale townhome units, which requires a Vesting Tentative Map for the condominium subdivision of the lot per MMC Section XI-1-4.00 (Filing and Approval of Tentative Map). • Density Bonus Permit: A density bonus is required to ensure compliance with State Density Bonus Law and ensure the project is eligible for certain concessions under State Density Bonus Law. See MMC Sections XIII-C.12.010 et seq. (Density Bonus for Affordable Housing Developments). • Development Agreement (DA): A DA is proposed to provide certainty as to what development

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standards apply to this Project, including to preserve the minimum residential density previously allowed for the subject property under the TASP (30 dwelling units per acre). See MMC Sections XIII- D.14.010 et seq. (Development Agreements).

On May 6, 2026, the Planning Commission held a public hearing to consider the proposed Project. After receiving a presentation from staff, hearing from the applicant and the public, the Planning Commission closed the public hearing and voted 6-0, with one Commissioner absent, recommending that the Milpitas City Council approve the Project. The Commission expressed concerns with the decrease in residential density and units, loss of ground-floor retail space, and removal of the hotel resulting from the current proposal relative to the previous entitlement. However, the Commission acknowledged the importance of developing a key vacant site in the Metro Plan area and completing the surrounding neighborhood with a high-quality townhome development, which includes affordable housing, live-work units, and various public improvements.

Environmental review for the project has been conducted in accordance with the California Environmental Quality Act (CEQA), and the Project has been determined to be categorically exempt pursuant to CEQA Guidelines Section 15182, as it is a residential project consistent with a specific plan for which an Environmental Impact Report has been certified.

ANALYSIS:

Project Overview
The Project site is an undeveloped 5.49-acre parcel at the intersection of Great Mall Parkway and McCandless Drive within the McCandless District of the Metro Specific Plan. The property and some neighboring properties are zoned MXD2-Metro Mixed-Use. The Project site is located in the southern portion of the City, across the street from the Great Mall, and within a ½ mile from the Milpitas Transit Center. An aerial map of the subject site location is shown on Map 1 below.

Map 1 – Project Location

Lyon Living (Applicant) submitted an application in July 2025 requesting a Site Development Permit Amendment to develop 109 multi-family townhomes and 10 Accessory Dwelling Units on a 5.49-acre vacant lot. The residences will each include an attached two-car garage, while nine of the townhome units along Market Street to the south will include live/work units, which include first floors that have been designed and Project Site
N

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will be deed restricted to function as commercial spaces. The live/work units have three different floor plans, all of which open onto the main floor of the unit and have access to ADA compliant bathrooms and an office area.

The commercial component of the live/work units range from 336 to 401 square feet in size, for a total commercial floor area of 3,324 square feet. From the Market Street entrance, the live/work units will feature floor to ceiling windows and contemporary signage on the metal façade above each unit.

The proposed Project features 109 townhomes and 10 ADUs grouped into 17 buildings on the Project site. All 17 buildings range from three to four stories in height and feature contemporary architecture with a variety of building materials including stucco, siding, metal roof elements, and brick stone veneer. Although the site is surrounded by streets on all four sides, primary access to the site will be limited to one driveway along Market Street to the south in order to provide a more continuous facade and urban perspective from the other street frontages and surrounding area. Although this development does not propose on-site affordable housing, the applicant is providing 18 low-income and 4 very low-income rental apartment units at the adjacent Gideon building directly to the south of the site. These units would be provided within the larger footprint of the Fields project. Public improvements include refinished adjacent streets and new/updated sidewalks throughout the perimeter of the site, in addition to all required utility improvements. Lastly, the proposed Project includes a 27,832 square-foot publicly accessible urban plaza on the corner of Market Street and McCandless Drive.

Milpitas General Plan 2040
The General Plan designation for the Project site is Milpitas Metro Specific Plan (MMSP). The Milpitas Metro Specific Plan (Metro Plan) classifies the Project site as Residential Retail High Density Mixed Use (RRMU) and details the goals, objectives and policies for the RRMU land use classification. The RRMU designation supports vertically mixed-use development that have ground floor retail and active uses with residential or office uses on upper floors. As a whole, the mixed-use designations of the Metro plan are intended to cluster pedestrian-oriented retail and personal services in proximity to high-density residential populations, as well as making them convenient to employment areas. The Project can be found in conformance with the policies and standards in the City’s General Plan policies, as outlined in the following table:

Table 2:

General Plan Consistency

Policy Conformance
LU 1-4 Continue to provide for a
variety of housing types and
densities that meet the needs of
individuals and families and offer
residents of all income levels, age
groups, and special needs
sufficient housing opportunities
and choices for locating in Milpitas.

Consistent. The Project provides 109 new multi-family townhome residences and 10 Accessory Dwelling Units (ADUs) on a
currently vacant 5.49-acre parcel within the McCandless District of the Metro Specific Plan area. This variety of housing types — townhomes with attached two-car garages and ADUs — will meet the needs of individuals, families, and residents of all demographics and income levels. The townhome product type offers a family-sized housing option that is distinct from the higher- density stacked-flat apartment developments that predominate in the Metro Plan area, thereby diversifying the housing stock and providing additional choices for residents who may need more space for family, professional, or personal needs. Additionally, nine of the townhome units along Market Street will include live/work units, further expanding the variety of housing options available to residents who may wish to operate a home-based business.

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Policy Conformance
LU 2-1 Utilize Specific Plans to
guide development within
Milpitas’s special planning areas.

Properties located within Specific
Plan areas shall conform to the
underlying Specific Plan’s land
uses, zoning, and development
standards.

Consistent. The Project site is located within the Metro Specific Plan (Metro Plan) area and is zoned MXD2-Metro. The General Plan designates the Metro Plan as a walkable, transit-oriented area that encourages walking, biking, and public transit to minimize vehicle miles traveled (VMT). The Project, as proposed, conforms to the majority of development standards of the Metro Plan, as applicable; however, some of these standards will be addressed through a separate Development Agreement. The inclusion of nine live/work units along Market Street to the south is also consistent with the Metro Plan’s vision for active ground- floor uses along designated activity streets within the McCandless District.

LU 5-1 Require new development
and redevelopment to be
compatible, complementary, and,
where appropriate, well integrated
with existing residential areas.

Integrate new large-scale
development projects into the
fabric of the existing community
rather than allowing projects to be
insular and self-contained.

Consistent. The Project site is located across the street from the Great Mall and within the McCandless District, an area that has steadily transitioned to a mixed-use, transit-oriented
neighborhood over the last ten years or so. This Project will develop a currently vacant 5.49-acre parcel, thereby activating an underutilized site and contributing to the fabric of the area. The Project site design, with live/work units oriented toward public streets, will create an active street presence that integrates with the surrounding streetscape rather than creating an insular or self-contained development.

LU 5-3 Ensure new development
is consistent with specific height
limits established within the City’s
Zoning Ordinance as applied
through the zoning district for all
properties within the City.

Consistent. The Project meets the applicable height standards by proposing townhome buildings within the maximum height limit established for the MXD2-Metro zoning district. The building heights are proposed between 36 and 49 feet, which are
consistent with the scale of nearby townhome developments within the Metro Plan area, while the maximum allowed building height is 85 feet.

CD 5-5 For infill development,
incorporate context-sensitive
design elements that maintain
compatibility and raise the quality
of the area’s architectural
character.

The townhome site design, with attached two-car garages, private entrances, and varied rooflines, provides a residential character that is compatible with the existing residential developments in the surrounding area. Furthermore, the inclusion of nine live/work units along Market Street introduces an active ground-floor element that conforms directly with the mixed-use character envisioned by the Metro Plan for the McCandless District.

CD 6-5 Promote consistent
development patterns along
streets, particularly by how
buildings relate to the street, to
promote a sense of visual order,
and provide attractive
streetscapes.

Consistent. The Project promotes consistent development patterns along Great Mall Parkway, McCandless Drive, and Market Street by orienting live/work units to face the public streets while maintaining landscaped setbacks that create an active and attractive streetscape. The proposed live/work units along Market Street further activate the street frontage and promote a sense of visual order consistent with the Metro Plan’s vision for pedestrian- oriented activity streets. Furthermore, the Project includes separated sidewalks, street trees, and landscaping along the perimeter of the site, consistent with the Metro Plans’ streetscape standards.

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Milpitas Metro Specific Plan
The Vision Statement of the Milpitas Metro Specific Plan (Metro Plan) is “to create a complete and unique urban neighborhood”. A complete neighborhood includes neighborhood services, a variety of retail, a balance of jobs and housing, with jobs near transit, affordable and market rate housing, safe and attractive multimodal connections, a variety of shared public spaces, and a strong sense of place with memorable architecture and landmarks. The proposed townhome project with live/work units contributes to the Metro Plan’s vision of creating a complete neighborhood within the McCandless District. The Project develops a current vacant parcel, converting underutilized land into new housing that supports the transit-oriented neighborhood envisioned by the Metro Plan. The inclusion of nine live/work units along Market Street also introduces a mixed-use component that supports the Metro Plan’s goal of providing neighborhood services and a balance of jobs and housing near transit. The Project’s location within the McCandless District is consistent with the established pattern of townhome development in this subdistrict.

Milpitas Zoning Ordinance
The site is located in the Metro High Density Mixed Use (MXD2-Metro) Zoning District. The purpose of the MXD2-Metro zoning district is to create and enhance areas with a mix of retail, restaurant, entertainment, and commercial service uses on the ground floor and residential or office uses on upper stories, while maintaining a pedestrian-oriented streetscape. It is intended that the required active ground floor uses will ensure neighborhood-oriented retail and services are provided within walking distance of high-density residential development.

Per Milpitas Zoning Code Table B.12.030-A (Metro Zone Development Standards), the subject parcel is allowed a minimum density of 40 dwelling units per acre (du/acre) and a maximum density of 85 du/acre and a Floor Area Ratio between 1.0 and 2.5. Table 3 demonstrates the Project’s consistency with the applicable development standards of the MXD2-Metro zoning district.

Table 3:

Summary of Development Standards
Standards MXD2-Metro Proposed Complies
Density Range (du/
gross acre) 40-85 20 No*
Active Use
Ground floor retail and
active uses required on
80% of frontages on any
one blockface along any
Activity Street
9 Live/work units
proposed along Market
Street to the south
No*
Sidewalk Width
(Activity Street) 18 feet 8-10 feet No**
Front Setback
Min.: 0 feet
Max.: 20 feet
5-15 feet along Great Mall
Pkwy Yes
Interior Side Yard
Setback (Min.) 0 feet 1-foot along Market Street Yes
Street Side Setback Min.: 0 feet 14’4” feet along
McCandless Yes
Rear Setback 10 feet N/A Yes
FAR (Min.) 1.0 1.52 Yes
FAR (Max.) 2.5 1.52 Yes

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Standards MXD2-Metro Proposed Complies
Building Height
(Maximum) 85 feet 36 – 49 feet
Yes
Usable Open Space
Per Dwelling

Per Site
Min. 100 sf per residential
unit, which may be private
or common open space
(109 units x100 square
feet per unit =10,900
square feet required)

Min. 5% of the total open
space provided on-site
must be publicly
accessible
35,105 square feet
provided as follows:

1. Common open
space: 7,273 SF

2. Public open area
(urban plaza):
27,832 SF
Yes
Long-Term Bicycle
Storage

0.5 long-term spaces per
bedroom 177 (354 bedrooms x 0.5) Yes
Short-Term Bicycle
Storage

0.1 short-term spaces per
bedroom None Yes, per
COA #19
*
Although the Project does not meet the density requirement of the MXD2-Metro zone, a Development Agreement is proposed to apply the minimum density in the TASP (30 du/ac), which the Project would meet.
**
The Project includes a Density Bonus permit request to reduce the Active Use and Activity Street sidewalk width requirements of the MXD2-Metro zone

The residential density of the Project is approximately 20 dwelling units per acre (du/ac), which does not meet the allowed minimum density of 40 du/ac in the MXD2-Metro zoning district. However, previous approvals established the use of density averaging across The Fields/District development, allowing flexibility in the distribution of units among the various lots. The average density across the Fields/District development with the proposed Project would be 31 du/ac. The proposed Development Agreement would preserve the minimum residential density of 30 du/ac previously allowed for the subject property under the Transit Area Specific Plan (TASP). Therefore, with density averaging across The Fields/District development, the Project would meet the prior TASP minimum density with 31 units per acre average.

Site & Architectural Design
The townhomes are grouped into 17 buildings, which are accessed by private streets and driveways. They are designed in a multi-story townhome format, generally three and four levels tall, maximizing vertical space with parking and entry at the ground level, main living areas on the second and third floors, and bonus or entertaining rooms opening onto large, covered terraces at the top level to take advantage of light and views.

Outdoor living is emphasized through balconies and top-level terraces featuring sleek black railings and warm wood soffits, while simple balcony columns frame views and reinforce the contemporary character. The roof design combines shed roofs, flat balcony and terrace roofs, and curved sloping roofs at prominent elements, creating a simple yet dynamic contemporary roofline. Large windows enhance natural light and provide expansive views throughout the development.

Exterior materials consist primarily of stucco with lap siding accents for added texture, while brick at the ground

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floor introduces a natural element that helps ground the modern aesthetic. The color palette draws from coastal tones, including whites, cool grays, blues, and green-blues, complemented by the warmer earth tones of the brick. The proposed architecture complements neighboring residential developments, which also reflect contemporary and modern design.

Traffic and Circulation
Vehicular access will be provided by a single driveway with direct ingress/egress from Market Street to the south. An internal private street and alley grid will provide access to the 17 buildings and 109 garages with a total of 179 covered vehicle parking spaces provided. One additional emergency access would be provided along McCandless to the west of the site. In addition, four guest parking spaces will be provided along the internal driveway labeled “Street G” in the attached Project Plans, including one ADA-compliant space. The Project has also been conditioned to provide one guest parking space as an EV charging space, per Building Code. Consistent with the intent of the Metro Area and The Fields development, pedestrian ingress and egress is provided throughout the site. New and improved sidewalks along the perimeter of the site will provide access for pedestrians around the Project site. Internal walkways also provide convenient access for pedestrians throughout the site and in between buildings, with primary public sidewalk accessed from two points along Great Mall Pkwy., one at Market Street, and another accessing the urban plaza park at the southwest corner of the site.

The proposed Project includes 109 townhomes with a total of 354 bedrooms. Per MMC Section XIII-C.6.100 (Bicycle Parking), this results in 177 required long-term bicycle spaces and 35 short-term bicycle spaces on- site. The 177 long-term bicycle spaces will be located within the proposed attached garages, with an average of two long-term bicycle spaces per garage. The Project is also conditioned to provide updated plans showing the location and design for all 35 short-term bicycle spaces on-site prior to Building permit issuance, per Condition of Approval #19. Furthermore, multifamily residential projects are required to provide a minimum of

0.5 parking spaces per unit, which would result in 55 parking spaces for this Project. However, the Project will provide a two-car attached garage per unit, as well as four guest parking spaces, resulting in a total of 222 parking spaces throughout the site.

Public Improvements
The proposed Project would require utility services including water, wastewater, storm drain, gas, electrical, and telecommunications. The proposed Project would connect to existing utilities via tie-ins along McCandless Drive to the west and Great Mall Parkway to the north. The Project site is currently undeveloped except for a building foundation from the previous entitlement that was never completed. Roofs, roads, concrete driveways and other infrastructure would result in 186,084 square feet of impervious area, which would be mitigated through eight separate drain management areas (DMAs). The three DMAs closest to Great Mall Parkway to the north will use UTS – Silva Cells, while the remaining five will use bioretention areas that will treat and handle stormwater flows prior to discharge to the City’s stormwater drainage system.

However, Public Works is requiring that the developer perform pavement restoration along the project frontage on McCandless Drive, Center Pointe Drive, and Great Mall Parkway per City Standards. In addition, the developer will also perform street lighting photometric analysis along the frontages of the Project to ensure there is ample amount of light when needed. The photometric plan will be reviewed and approved by the City during the construction plan phase.

The Project fronts Great Mall Parkway to the north, McCandless Drive to the west, Market Street to the south, and Centre Pointe Drive to the east. Project frontage along Great Mall Parkway will have a new 10-foot sidewalk and 11 feet of landscaping. Project frontage along McCandless will maintain the existing 8-foot sidewalk and provide between 10 and 16 feet of landscaping. Project frontage along Market Street will have a new 8-foot sidewalk and 12 feet of landscaping. Lastly, frontage along Centre Pointe will have a new 8-foot sidewalk and approximately 12 feet of landscaping.

Landscaping

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The proposed Project incorporates a combination of groundcovers, shrubs, and trees that are drought-tolerant and consistent with the City’s approved plant palette. The vacant site currently has 15 trees, five of which are along McCandless Drive and will remain untouched, while 10 small trees along Great Mall Parkway will be removed. Although none of these removed trees are considered “protected” trees as measured from the width of the trunk, the Project will still mitigate the loss of trees and enhance the Project by planting five additional 24” box Crape Myrtle trees along McCandless Drive along the western edge of the site. 26 additional 24” box Crape Myrtle and Golden Rain Trees are also proposed along the other three street frontages, as well as 16 large, 24” box size Lacebark Elm trees along Great Mall Parkway to the north. Numerous other trees are proposed throughout the interior of the townhome development, including 23 36” box size ‘Keith Davey’ trees.

A number of shrubs and groundcover are proposed throughout the project site such as cape rush shrubs, blush fringe flowers, and different various types of sage will assist the site in bioretention as well as erosion control while providing a harmonious view for the nearby residents.

Open Space
Per the Metro Specific Plan, private development must provide on-site open space at a rate of 100 square feet per unit, with at least 5% provided as publicly-accessible open space. This results in a minimum of 10,900 square feet of required open space on-site, 545 square feet of which must be publicly-accessible. The proposed Project exceeds this requirement by providing a 27,832 square-foot publicly-accessible urban plaza area, plus 7,273 square feet of public open space near public right of ways. The urban plaza features a semi- circular concrete seat wall facing a circular patch of lawn that can be used for active uses for the general public. A cantilevered trellis patio cover will overhang the seat wall to provide shade while maintaining an open feel to the urban plaza. Additional shade to the urban plaza will be provided by eight 24” box size accent trees such as red maples and Ginkgo Biloba trees. The Project will also provide 16,745 square feet of private common space in the form of exterior yards within the innermost portion of the site, particularly near Buildings 13, 14 and 17.

Objective Design Standards
The City of Milpitas adopted its Residential and Mixed-Use Objective Design Standards (ODS) to facilitate project designs by establishing objective development and design standards for all multi-family and mixed-use projects.

The ODS are intended to bring consistency and clarity to project review and permitting while eliminating subjectivity to provide uniform language. The proposed Project includes 109 townhome units and 10 ADUs on a

5.49-acre site, which would be classified as a Large project type and a “Medium” building type. While compliance with the ODS is only required for projects seeking permit streamlining (i.e., ministerial review), all projects proposing two or more dwelling units must demonstrate how it meets the intent and purpose of the ODS.

Although the Project is not seeking ministerial review, the Project is compliant with or meets the intent and purpose of (i.e., consistent with) the City’s ODS.

Affordable Housing Ordinance
The City’s Affordable Housing Ordinance (AHO), adopted in February 2022, applies to all new residential development projects of ten units or more designed and intended for permanent occupancy. The proposed Project consists of 109 market-rate dwelling units and 10 ADUs, for a total of 119 housing units. Although ADUs are specifically not counted towards the total number of affordable units, the 109 townhomes exceed the 10-unit threshold and is therefore subject to the AHO.

Pursuant to MMC Section XII-1-3.00, the applicant must reserve 15% of the total number of dwelling units within the development as affordable units. The City’s AHO also states that if the project is a residential rental project, 100% of the required affordable units must be reserved for very low or low-income households. If the project is a residential ownership project, 100% of the affordable units must be reserved for very low, low, or moderate-low-income households. As the Project proposes for-sale townhomes, all affordable units are required to be at the moderate-income level or lower. Applying the 15% requirement to the 109 market-rate townhomes yields an affordable housing obligation of approximately 16.35 moderate-income townhomes. Per the AHO, a fractional unit equal to 0.5 or greater is rounded up, resulting in a requirement of 17 on-site affordable units. The Applicant has not elected to pay an in-lieu fee. The on-site requirement is therefore 17 affordable units.

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Although the City’s AHO requires projects to construct 15% of the total number of dwelling units as affordable units on-site, some exceptions can be made. All exceptions to this requirement for ownership units shall require City Council approval, which must be obtained at or prior to the last discretionary approval for development of the Project. The AHO distinguishes between ownership and rental projects for purposes of the exception process. The City Council may allow an exception to the on-site requirement when the applicant contributes to the City’s affordable housing needs through one of the alternatives found within Subsections XII- 1-4.00 through XII-1-4.02, which include in-lieu fee payments, off-site construction, and land dedication.

The Project proposes 109 market-rate townhomes without any below-market-rate (BMR) units on site, which is inconsistent with the City’s AHO. However, the Applicant is proposing to provide 22 below-market-rate (BMR) rental units by converting market-rate apartments in the adjacent mixed-use building to the south of the Project site, commonly known as Gideon. The Gideon building has 213 rental apartment units, all of which are currently rented at market-rate. The Applicant requests that pursuant to Subsection XII-1-4.03 that Council approve this alternate method of compliance, which requires the City Council to find that such alternate method of compliance meets the purpose of the AHO. In addition, per Section 4 (Exceptions to On-Site Development of 15 Percent Affordable Units) of the AHO, all ownership projects proposing an alternative means of compliance must meet two findings:

1. The development as proposed with the exception as provided pursuant to this Section would further the City’s low and/or moderate income housing goals as contained in the Housing Element; and

2. The development with the exception either (i) will result in at least two of the following; a. The development of a larger number of deed-restricted affordable units than would be created under the on-site requirement;
b. The development of a larger number of deed-restricted affordable bedrooms than would be created under the on-site requirement;
c. The development of a larger amount of deed restricted affordable living area than would be created under the on-site requirement;
d. The development of deed-restricted affordable units at a lower average income target as compared to the affordable units that would be created under the on-site requirement;

or (ii) will provide other community benefits that exceed the benefit of constructing on-site affordable units.

While the Project does not propose BMR units within the Project site (Lot 3), the Project site is one of the four sites within The Fields/District development, and the affordable units will be provided within the larger development of which this specific Project is a part. Therefore, under the unique circumstances of this particular project and method of compliance, the above findings can apply (and not necessarily the additional findings for off-site projects in Section XII-1-4.01).

The Project proposes to provide a larger number of deed-restricted affordable units (Finding 2.a) and some of those units at a lower income level (Finding 2.d) than would be created under the on-site requirement. Of the 22 BMR rental units, 18 would be at the low-income level and 4 would be at the very low-income level. Of the 18 low-income units, 15 are proposed as part of this alternative means of compliance with the AHO, and of the 4 very low-income units, 3 are proposed as part of this alternative means of compliance with the AHO. As such, the Project proposes an alternative means of compliance consisting of 18 instead of 17 BMR units, 3 of which would be at the very low- instead of low-income level. The Project proposes to reserve the remaining BMR units (3 low- and 1 very low-income) as a public benefit as part of the proposed Development Agreement as summarized in the below table:

Affordable
Unit Type
Required by
Affordable
Housing
Proposed by
Developer to
meet AHO
requirements
Proposed by
Developer for
Development
Agreement
Total Being
Proposed by
Developer

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Ordinance
(AHO)
Moderate 17 0 0 0
Low 0 15 3 18
Very Low 0 3 1 4
Total 17 18 4 22

The Applicant requests that the City Council find that this alternate proposal is compliant with the AHO and provides a greater number of affordable units at a lower income level than what would otherwise be produced in the onsite development of the townhomes. The Applicant also points out that these affordable rental units are already constructed and can be made available to qualifying low- and very low-income households as they come open for lease, whereas the onsite construction of the townhomes project may take several years and therefore present a less immediate source of affordable housing.

The Project as proposed would also further the City’s low and/or moderate income housing goals as contained in the Housing Element, which includes policies that prioritize the development of low- and very low-income levels. Additionally, the Housing Element Sites Inventory anticipated 357 market-rate units on this site based on the previous entitlement. While the Project would result in 238 fewer market-rate units than anticipated, it would provide 22 low-/very low-income units, which were not anticipated in the Sites Inventory for this site.

Historically, the City has exceeded its Regional Housing Needs Allocation (RHNA) for market-rate but struggled to meet its RHNA for the low- and very low-income levels.

Furthermore, while the Project would provide smaller apartments instead of townhouse BMR units, these units would be at the low-/very low-income levels, providing greater rental savings for the Milpitas community relative to that of moderate-income units. The applicant has also demonstrated how the 18 low-/very-low apartment units are equivalent to or exceed the construction cost or value of 17.35 moderate townhomes. See the attached Affordable Housing Equivalency Analysis for more information.

State Density Bonus Law
State Density Bonus Law (Gov. Code § 65915 et seq.) incentivizes affordable housing by offering developers certain benefits. According to State Density Bonus Law (SDBL), developers that reserve “at least 10 percent of the housing units restricted to lower income residents” are entitled to waivers, concessions, and incentives (which include parking reductions). The city cannot deny a waiver, concession, or incentive unless it can demonstrate the exception will not result in an identifiable cost reduction for the project, have a specific adverse impact upon public health and safety (per Section 50052.5 of the California Health and Safety Code), would be prohibited by CEQA (Pub. Resources Code, § 21000 et seq.), or otherwise be contrary to state or federal law.

While the Project is not reserving at least 10 percent of the proposed housing units for lower income residents onsite, the State Density Bonus Law permits local jurisdictions to provide incentives or concessions allowed under the law even where a development may otherwise not be entitled to such incentives or concessions. As such, the City could allow the Applicant to request incentives or concessions for the Project through the DA.

Therefore, the applicant is requesting the following incentives or concessions:

1. A reduction in the commercial requirement; and

2. A reduction in the sidewalk width requirement.

The MXD2-Metro zoning district requires ground floor retail and active uses on 80% of frontages on any one blockface along Activity Streets as identified in the Metro Plan. The Metro Plan identifies three of the Project site’s frontages as Activity Streets, along the west, south, and east frontages. Since the Project only proposes active uses along Market Street to the south, a waiver is required to reduce the commercial requirement for the Project accordingly. The Metro Plan also requires a minimum 18-foot-wide sidewalk along Activity Streets.

However, the proposed sidewalks along the three Activity Streets range from 8 to 10 feet in width.

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Both concessions are necessary to make the project economically feasible for the applicant to build since meeting the commercial requirement and minimum sidewalk width requirement would significantly increase the Project cost and affect the core townhomes project that the Applicant wishes to market. The Applicant has provided a project narrative stating why the incentives or concessions are needed and appropriate, as seen in Attachment F.

Development Agreement
A Development Agreement (DA) is needed to provide certainty regarding the applicable development standards. The California Legislature adopted the Development Agreement Statute (Section 65864 et seq. of the Government Code) to strengthen public planning, encourage private participation, and reduce development risks. This statute allows cities to enter binding agreements with property owners, establishing certainty as to the development standards and right for a particular project and thereby encouraging investment and redevelopment. On May 6, 1997, the City Council adopted Resolution No. 6642, which sets forth comprehensive procedures and requirements for the institution of development agreements.

The Project is eligible for a Development Agreement because it is a large-scale multifamily residential project and part of a multi-phased master-planned development requiring significant front-end investment and multiple years to complete construction, and otherwise requires long-term certainty on the part of the Applicant, at least for the three-year term (up to a seven-year term with options) of the currently proposed DA. This DA would provide certainty and direction for development to allow the completion of the last aspect of the District/Fields development.

Through the proposed Agreement, the landowner and City would preserve the minimum residential density previously allowed for the subject property under the TASP (31 dwelling units per acre), and thereby allow for the proposed development with additional construction and improvements only allowable through the benefit of this DA.

In consideration, the landowner shall provide the following offsetting public benefits to the City:

1. Payment of Four Hundred Thousand Dollars ($400,000) as a voluntary contribution to the City and community benefit to fund City services and infrastructure improvements at the discretion of the Council, payable at the time of issuance of final occupancy or after 3 years from the Effective Date, whichever comes first; and

2. Conversion of 3 low- and 1 very low-income units within the adjacent Gideon development beyond the affordable units provided for AHO compliance, to be restricted to affordable rents prior to the issuance of building permits and rented to qualifying households within 2 years.

These community benefits are meant to offset the community impacts of the DA, which staff anticipates will at least include additional transportation and other programing or infrastructure required by locating additional residential units further away from this location and the extensive infrastructure and public/private amenities next to it, including the Great Mall and the Milpitas Transit Center.

The proposed DA allows redevelopment of an underutilized site, which has long been vacant as the rest of The Fields/District development has been constructed under the previous TASP standards. The Milpitas Metro Specific Plan, which was adopted in 2023 well after amendments to the previous entitlement for this site, increased the minimum density under the TASP from 30 to 40 dwelling units per acre, which is difficult to meet under current market conditions. The proposed DA will hold these standards open for a period of three (3) years, up to seven (7) years with options, should further redevelopment of the site be sought during this period.

If changes are proposed beyond what is defined as “Insubstantial Modification” in the DA, the Project would need to be re-entitled in conformity with then current development standards.

No Net Loss Law
While the proposed DA with the reduced minimum density would result in fewer units to be built on the Project site than anticipated in the Housing Element Sites Inventory (119 vs. 357 units), the No Net Loss Law as

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codified in Government Code Section 65863 requires a jurisdiction to maintain adequate housing sites to accommodate its remaining unmet RHNA by each income category at all times throughout the entire planning period. If a jurisdiction approves a development of a site identified in its Housing Element Sites Inventory with fewer units than shown in the Housing Element, it must find that the remaining sites have sufficient capacity to accommodate the remaining unmet RHNA by each income level. For the above-moderate income level (i.e., market-rate), the Milpitas 2023-2031 Housing Element identified a total capacity of 4,089 units, which exceeds Milpitas’ RHNA obligation of 2,346 units by 1,162 units. Although the Project would result in the loss of 238 market-rate units relative to the anticipated number of units identified in the Sites Inventory, the City currently has more than enough capacity to accommodate its remaining unmet RHNA in this income category.

Furthermore, without the proposed DA, given current market conditions, the Project site would likely remain undeveloped beyond the current RHNA cycle (2023-2031), in which case the City would gain no residential units to help meet its RHNA obligations. Additionally, the proposed Project would result in 22 additional lower income units than anticipated in the Housing Element Sites Inventory, with 18 of those units being in the low- income level and 4 being in the very low-income level.

POLICY ALTERNATIVES
Alternative 1: Deny the Project.

Pros: A different project with higher density could be proposed at this site in accordance with the MXD2-Metro zoning standards.

Cons: The existing vacant site will remain vacant for the foreseeable future until a new development is proposed, which will require new Planning entitlements. Until that time, the City would lose an opportunity to collect development impact fees, require offsite public improvements, and realize development of new housing options, including accessory dwelling units and live/work units within the Metro area. The District neighborhood would remain incomplete and the vacant site would remain a blight to the surrounding area, potentially hindering the immediate surroundings from becoming a vibrant and pedestrian-friendly core within the Metro Plan area. Furthermore, the City would not receive the public benefits associated with the Development Agreement, including the additional affordable housing units beyond the AHO requirement and voluntary cash contribution of $400,000.

Reason for Not Recommending: This alternative is not recommended because it does not consider the current market, which has made the previously approved high-density, mixed-use project challenging to build.

Denial of the amendment could result in prolonged inactivity on a key site within the Metro area, limiting the City’s ability to facilitate infill development while providing at least 119 RHNA dwelling units.

PROJECT SCHEDULE/ KEY MILESTONES
City Council Approval: 5/19/2026
Estimated Submittal of Building Plan Check/ Construction Drawings: August 2026 Estimated Start of Construction: June 2027
Estimated Substantial Completion: January 2029

FISCAL IMPACT:

If the proposed Project is approved, the Applicant will apply for various building permits and encroachment permits to construct the new onsite buildings, site improvements, and offsite public improvements in the surrounding area. The new development is expected to generate additional revenue to the City through property taxes as well as potential sales taxes from the nine live/work units. Additionally, the proposed Development Agreement includes a one-time voluntary contribution of $400,000 to the City to fund City services and infrastructure improvements at the discretion of the Council.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The City conducted an environmental assessment in accordance with the California Environmental Quality Act (CEQA) and determined that the proposed Project is categorically exempt from CEQA in accordance with CEQA Guidelines Section 15182 (Residential Projects Pursuant to a Specific Plan) and is consistent with the Addendum to the Transit Area Specific Plan (TASP) Final Environmental Impact Report (FEIR). CEQA

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Guidelines Section 15182 exempts further environmental review for a predominantly residential project that is generally in conformity with a specific plan, provided that an EIR was certified for the Specific Plan after January 1, 1980, the Project is a residential project (or predominantly residential in nature), that the Project is consistent with the Specific Plan, and that no events under CEQA Guidelines Section 15162 have occurred.

The TASP EIR (SCH#2006032091) was certified by the Milpitas City Council on June 3, 2008, and was later updated by the Milpitas Metro Specific Plan Subsequent EIR, certified by the Milpitas City Council on February 7, 2023, both of which meet the time frame requirement. The proposed Project consists of 109 townhome dwelling units, 10 ADUs, and nine live/work units, which is considered predominantly residential in nature, meets the residential component of CEQA Guidelines Section 15182. The proposed Project is located within the Metro Plan, and the proposed townhome project with live/work units contributes to the Metro Plan’s vision of creating a complete neighborhood within the McCandless District. The Project is found to be consistent with the goals, policies, and development standards of the Metro Plan, which meets the Specific Plan component.

Lastly, CEQA Guidelines Section 15162 refers to substantial changes proposed in the EIR area that would create significant or substantially more severe impacts. Since the proposed Project involves a decrease in units, decrease in building square footage, and decrease in building height, no instances of CEQA Guidelines Section 15162 could reasonably have been known. Therefore, this Project meets CEQA Guidelines Section 15182.

ATTACHMENT(S):
(a) City Council Resolution
(b) Planning Commission Staff Report
(c) Project Plans
(d) Draft Development Agreement
(e) Financial Analysis Report (Economic Equivalency Analysis) (f) Concession Request Letter (Memorandum/Concessions List) (g) Development Agreement Ordinance

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RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS APPROVING SITE DEVELOPMENT PERMIT AMENDMENT SA25-0002, VESTING TENTATIVE MAP P-TM26-0001, CONDITIONAL USE PERMIT AMENDMENT P-UA25-0003, DENSITY BONUS PERMIT P-DB26-0001, AND DEVELOPMENT AGREEMENT (P- DA26-0001)FOR THE DISTRICT – LOT 3 (CENTRE POINTE SITE A) / THE FIELDS,

GENERALLY LOCATED AT THE INTERSECTION OF GREAT MALL PARKWAY AND McCANDLESS DRIVE, WITHIN THE McCANDLESS / CENTRE POINTE SUB- DISTRICT OF THE MILPITAS METRO (APN: 086-33-112, -113, and -114).

WHEREAS, in 2008, the City Council adopted the Transit Area Specific Plan (TASP), which encompasses 437 acres and forecasts the development of approximately 7,109 residential dwelling units, 287,075 square feet of retail space, 993,843 square feet of office use, and up to 350 hotel rooms, and included goals, policies, and development standards to guide construction within the area, including sub-districts to address the TASP’s unique characteristics; and
WHEREAS, in 2010, Integral Communities submitted a master-planned mixed-use development within a portion of the McCandless/Centre Pointe Sub-District, known as The District, which includes multiple land areas for retail, commercial, and high-density residential development; and WHEREAS, Integral Communities subsequently sold The District project to Lyon Living, which is completing the development of a portion of The District, referred to as The Fields, comprised of four separate mixed-use areas located near the intersection of Great Mall Parkway and McCandless Drive, also referred to by the City as The District – Lot 1, Lot 2, Lot 3, and Lot 4, and by the applicant as Turing, Graham, Elion, and Gideon, respectively; and
WHEREAS, in November 2015, the City of Milpitas approved multiple entitlements for a major portion of The Fields, including Site Development Permit No. SD15-0006 and Conditional Use Permit No. UP15-0010, as part of a master-planned development comprised of six planning areas, each developed with a mix of multi-family residential and residential units, including:
• District Lot 2: A 218-unit multi-family residential development with approximately 3,480 square feet of retail and commercial uses, mapped pursuant to Tentative Map No. TM11-0002 approved March 20, 2012; • District Lot 3: a 175-room hotel and associated uses as approved under SD15-0006 and UP15-0010; • District Lot 4: A 173-unit multi-family residential development with approximately 13,941 square feet of retail, mapped pursuant to Tentative Map No. TM11-0002 approved on March 20, 2012; and WHEREAS, in 2021, the Planning Commission approved Site Development Permit Amendment No.

SA20-0004 and an amendment to Conditional Use Permit No. UP15-0010 on the Project site. That amendment modified the previously approved development density, uses, and architecture, including decreasing the total number of residential dwelling units from 423 to 357, decreasing the total number of hotel rooms from 175 to 162, decreasing the amount of commercial space from 59,135 square feet to 25,179 square feet, decreasing the size of the rooftop amenity deck from 49,240 square feet to 18,225 square feet, and reducing the building’s height from 130 feet to 83 feet for the hotel and 90 feet for the mixed-use buildings; and WHEREAS, in 2025, Lyon Living (the “Applicant”) submitted an application requesting a Site Development Permit Amendment to develop 109 multi-family townhomes and 10 Accessory Dwelling units on a vacant 5.49-acre site located in the MXD2-Metro Zoning District at 1320 McCandless Avenue, generally located at the intersection of Great Mall Parkway and McCandless Drive. The application also included a request for a Density Bonus Permit with waivers and concessions, as well as a tentative Development Agreement to address the required minimum density in the Milpitas Metro Specific Plan and other applicable standards; and

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2 Resolution No. xxxx
WHEREAS, the Planning Division completed an environmental assessment for the Project in accordance with the California Environmental Quality Act (CEQA), which assessment determined that the Project is exempt from CEQA review pursuant to Section 15182 (Projects Pursuant to a Specific Plan) of the CEQA Guidelines; and

WHEREAS, on May 6, 2026, the Planning Commission held a duly noticed public hearing on the subject application, and considered the evidence presented by City staff, the applicant, and other interested parties; and

WHEREAS, the Planning Commission considered all of the written and oral testimony presented at the public hearing in making its decision; and
WHEREAS, the Planning Commission closed the public hearing and voted 6-0, with one Commissioner absent, recommending that the Milpitas City Council approve Site Development Permit Amendment P-SA25-0002, Vesting Tentative Map P-TM26-0001, Conditional Use Permit Amendment P-UA25-0003, Density Bonus Permit P-DB26-0001, and Development Agreement DA26-0001; and
WHEREAS, on May 19, 2026, the City Council held a duly-noticed public hearing, at which time all those in attendance were given the opportunity to speak on the Project; and WHEREAS, the City Council considered all of the written and oral testimony presented at the public hearing, including evidence presented by City staff, the Applicant, and the public in making its decision.

NOW THEREFORE, the City Council of the City of Milpitas hereby finds, determines and resolves as follows:

SECTION 1. Recitals
The City Council has considered the full record before it, which may include, but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and incorporated herein by reference.

SECTION 2. California Environmental Quality Act
The City conducted an environmental assessment in accordance with the California Environmental Quality Act (CEQA) and determined that the proposed Project is categorically exempt from CEQA in accordance with CEQA Guidelines Section 15182 (Residential Projects Pursuant to a Specific Plan) and is consistent with the Addendum to the Transit Area Specific Plan (TASP) Final Environmental Impact Report (FEIR). CEQA Guidelines Section 15182 exempts further environmental review for a predominantly residential project that is generally in conformity with a specific plan, provided that an EIR was certified for the Specific Plan after January 1, 1980, the Project is a residential project (or predominantly residential in nature), that the Project is consistent with the Specific Plan, and that no events under CEQA Guidelines Section 15162 have occurred. The TASP EIR (SCH#2006032091) was certified by the Milpitas City Council on June 3, 2008, and was later updated by the Milpitas Metro Specific Plan Subsequent EIR, certified by the Milpitas City Council on February 7, 2023, both of which meet the time frame requirement. The proposed Project consists of 109 townhome dwelling units, 10 ADUs, and nine live/work units, which is considered predominantly residential in nature, meets the residential component of CEQA Guidelines Section 15182. The proposed Project is located within the Metro Plan, and the proposed townhome project with live/work units contributes to the Metro Plan’s vision of creating a complete neighborhood within the McCandless District. The Project is found to be consistent with the goals, policies, and development standards of the Metro Plan, which meets the Specific Plan component. Lastly, CEQA Guidelines Section 15162 refers to substantial changes proposed in the EIR area that would create significant or substantially more severe impacts. Since the proposed Project involves a decrease in units, decrease in building square footage, and decrease in building height, no instances of CEQA Guidelines Section 15162 could reasonably have been known. Therefore, this Project meets CEQA Guidelines Section 15182.

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3 Resolution No. xxxx
SECTION 3: Site Development Permit Findings (MMC Section XIII-D.4.020.F(1.a-d) for All Site Development Permits and MMC Section XIII-D.4.020.F(2.a-c) for Specific Projects)) :
1a. The proposed project is consistent with this Title.

The proposed Project provides 109 townhome residential units, 10 ADUs, nine live/work units, and 22 below- market-rate affordable rental units at an adjacent site, which is consistent with the intent of the MXD2-Metro zoning district. The Project’s site design, including setbacks and building height is also consistent with the applicable zoning standards for the MXD2-Metro zone, as demonstrated in Table 1 below. Although the Project does not comply with the density and active commercial requirement of the MXD2-Metro zone, a Density Bonus permit and Development Agreement are proposed to meet the average minimum density of the District area and reduce the commercial requirement, respectively. The residential density of the Project is approximately 20 dwelling units per acre (du/ac), which does not meet the allowed minimum density of 40 du/ac in the MXD2-Metro zoning district. However, previous approvals established the use of density averaging across The Fields/District development, allowing flexibility in the distribution of units among the various lots. The average density across this development with the proposed Project would be 31 du/ac. The proposed Development Agreement would preserve the minimum residential density of 30 du/ac previously allowed for the subject property under the Transit Area Specific Plan (TASP). Therefore, with density averaging across The Fields/District development, the Project would meet the TASP minimum density with 31 units per acre average. Therefore, the proposed Project is consistent with this title.

Table 1:

Summary of Metro Development Standards
Standards MXD2-Metro Proposed Complies
Density Range (du/
gross acre) 40-85 20 No*
Active Use
Ground floor retail and
active uses required on 80%
of frontages on any one
blockface along any Activity
Street
9 Live/work units proposed
along Market Street to the
south
No*
Sidewalk Width
(Activity Street) 18 feet 8-10 feet No**
Front Setback Min.: 0 feet
Max.: 20 feet
5-15 feet along Great Mall
Pkwy Yes
Interior Side Yard
Setback (Min.) 0 feet 1-foot along Market Street Yes
Street Side Setback Min.: 0 feet 14’4” feet along McCandless Yes Rear Setback 10 feet N/A Yes
FAR (Min.) 1.0 1.52 Yes
FAR (Max.) 2.5 1.52 Yes
Building Height
(Maximum) 85 feet 36 – 49 feet
Yes
Usable Open Space
Per Dwelling

Per Site
Min. 100 sf per residential
unit, which may be private
or common open space

Min. 5% of the total open
space provided on-site must
be publicly accessible
(109x100=10,900)

Common open space: 7,273
SF

Public open area (urban
plaza): 27,832 SF
Yes

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4 Resolution No. xxxx
Standards MXD2-Metro Proposed Complies
Long-Term Bicycle
Storage

0.5 long-term spaces per
bedroom 177 (354 bedrooms x 0.5) Yes
Short-Term Bicycle
Storage

0.1 short-term spaces per
bedroom None Yes, per
COA #20
*
Although the Project does not meet the density requirement of the MXD2- Metro zone, a Development Agreement is proposed to apply the minimum density in the TASP (31 du/ac), which the Project would meet. **
The Project includes a Density Bonus permit request to reduce the Active Use and Activity Street sidewalk width requirements of the MXD2-Metro zone

Site & Architectural Design
The townhomes are grouped into 17 buildings, which are accessed by private streets and driveways. The are designed in a multi-story townhome format, generally three and four levels tall, maximizing vertical space with parking and entry at the ground level, main living areas on the second and third floors, and bonus or entertaining rooms opening onto large, covered terraces at the top level to take advantage of light and views. Outdoor living is emphasized through balconies and top-level terraces featuring sleek black railings and warm wood soffits, while simple balcony columns frame views and reinforce the contemporary character. The roof design combines shed roofs, flat balcony and terrace roofs, and curved sloping roofs at prominent elements, creating a simple yet dynamic contemporary roofline. Large windows enhance natural light and provide expansive views throughout the development.

Traffic and Circulation
Vehicular access will be provided by a single driveway with direct ingress/egress from Market Street to the south. An internal private street and alley grid will provide access to the 17 buildings and 109 garages with a total of 179 covered vehicle parking spaces provided. In addition, four guest parking spaces will be provided along the internal driveway labeled “Street G” in the attached Project Plans, including one ADA- compliant space. Consistent with the intent of the Metro Area and The Fields development, pedestrian ingress and egress is provided throughout the site. New and improved sidewalks along the perimeter of the site will provide access for pedestrians around the Project site. Internal walkways also provide convenient access for pedestrians throughout the site and in between buildings, with primary public sidewalk accessed from two points along Great Mall Pkwy., one at Market Street, and another accessing the urban plaza park at the southwest corner of the site.

Public Improvements
The proposed Project would require utility services including water, wastewater, storm drain, gas, electrical, and telecommunications. The proposed Project would connect to existing utilities via tie-ins along McCandless Drive to the west and Great Mall Parkway to the north. The Project site is currently undeveloped except for a building foundation from the previous entitlement that was never completed. The Project fronts Great Mall Parkway to the north, McCandless Avenue to the west, Market Street to the south, and Centre Pointe Drive to the east. Project frontage along Great Mall Parkway will have a new 10-foot sidewalk and 11 feet of landscaping. Project frontage along McCandless will maintain the existing 8-foot sidewalk and provide between 10 and 16 feet of landscaping. Project frontage along Market Street will have a new 8-foot sidewalk and 12 feet of landscaping. Lastly, frontage along Centre Pointe will have a new 8-foot sidewalk and approximately 12 feet of landscaping.

Open Space
The proposed Project meets and exceeds the public open space requirement by providing a 27,832 square- foot publicly-accessible urban plaza area, plus 7,273 square feet of public open space near public right of

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5 Resolution No. xxxx
ways. The urban plaza features a semi-circular concrete seat wall facing a circular patch of lawn that can be used for active uses for the general public. The Project will also provide 16,745 square feet of private common space in the form of exterior yards within the innermost portion of the site, particularly near Buildings 13, 14 and 17.

1b. The proposed use and project are consistent with the goals and policies of the General Plan:

The proposed multi-family residential Project is consistent with the General Plan land use designation of Milpitas Metro Specific Plan, which encourages high-density, mixed-use, transit-oriented development, especially within the McCandless/Centre Pointe Sub-District. As shown in Table 2 below, the Project complies with General Plan policies LU 1-4, LU 2-1, LU 5-1, LU 5-3, CD 5-5, and CD 6-5. The townhome product type offers a family-sized housing option that is distinct from the higher-density stacked-flat apartment developments that predominate in the Metro Plan area, thereby diversifying the housing stock and providing additional choices for residents who may need more space for family, professional, or personal needs. This Project will develop a currently vacant 5.49-acre parcel, thereby activating an underutilized site and contributing to the fabric of the area. The Project site design, with live/work units oriented toward Market Street, which will provide a unique opportunity to homeowners and business owners, and will create an active ground-floor street presence that integrates with the surrounding streetscape rather than creating an insular or self-contained development. The proposed Project is a medium-density residential infill development that will complete The Fields/District development and neighborhood. Therefore, the proposed Project is consistent with the goals and policies of the General Plan, as outlined in the following table:

Table 2: General Plan Consistency
Policy Conformance
LU 1-4 Continue to provide for a
variety of housing types and densities
that meet the needs of individuals and
families and offer residents of all
income levels, age groups, and special
needs sufficient housing opportunities
and choices for locating in Milpitas.

The townhome product type offers a family-sized housing option that is distinct from the higher-density stacked-flat apartment developments that predominate in the Metro Plan area, thereby diversifying the housing stock and providing additional choices for residents who may need more space for family, professional, or personal needs. Additionally, nine of the townhome units along Market Street will include live/work units, further expanding the variety of housing options available to residents who may wish to operate a home-based business.

LU 2-1 Utilize Specific Plans to guide
development within Milpitas’s special
planning areas. Properties located
within Specific Plan areas shall
conform to the underlying Specific
Plan’s land uses, zoning, and
development standards.

Consistent. The Project site is located within the Metro Specific Plan (Metro Plan) area and is zoned MXD2-Metro.

The General Plan designates the Metro Plan as a walkable, transit-oriented area that encourages walking, biking, and public transit to minimize vehicle miles traveled (VMT). The Project, as proposed, conforms to the majority of development standards of the Metro Plan, as applicable; however, some of these standards will be addressed through a separate
Development Agreement. The inclusion of nine live/work units along Market Street to the south is also consistent with the Metro Plan’s vision for active ground-floor uses along
designated activity streets within the McCandless District.

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6 Resolution No. xxxx
Policy Conformance
LU 5-1 Require new development and
redevelopment to be compatible,
complementary, and, where
appropriate, well integrated with
existing residential areas. Integrate
new large-scale development projects
into the fabric of the existing
community rather than allowing
projects to be insular and self-
contained.

The Project site design, with live/work units oriented toward public streets, will create an active street presence that integrates with the surrounding streetscape rather than creating an insular or self-contained development.

LU 5-3 Ensure new development is
consistent with specific height limits
established within the City’s Zoning
Ordinance as applied through the
zoning district for all properties
within the City.

Consistent. The Project meets the applicable height standards by proposing townhome buildings within the maximum height limit established for the MXD2-Metro zoning district. The building heights are proposed between 36 and 49 feet, which are consistent with the scale of nearby townhome
developments within the Metro Plan area, while the maximum allowed building height is 85 feet.

CD 5-5 For infill development,
incorporate context-sensitive design
elements that maintain compatibility
and raise the quality of the area’s
architectural character.

Consistent. The Project is an infill development on a vacant

5.49-acre parcel within the McCandless District of the Metro Plan. The Project incorporates context-sensitive design elements that maintain compatibility with the evolving
architectural character of the Metro Plan area while raising the quality of the neighborhood. The townhome site design, with attached two-car garages, private entrances, and varied rooflines, provides a residential character that is compatible with the existing residential developments in the surrounding area. Furthermore, the inclusion of nine live/work units along Market Street introduces an active ground-floor element that conforms directly with the mixed-use character envisioned by the Metro Plan for the McCandless District.

CD 6-5 Promote consistent
development patterns along streets,
particularly by how buildings relate
to the street, to promote a sense of
visual order, and provide attractive
streetscapes.

Furthermore, the Project includes separated sidewalks, street trees, and landscaping along the perimeter of the site, consistent with the Metro Plans’ streetscape standards.

1c. The project will not be detrimental to public health, safety, and general welfare:

The proposed townhome development is compatible with existing and planned land uses in the vicinity. The McCandless District of the Metro Plan is characterized by “high-density mixed-use development along larger, busier streets in the northern area and lower density townhouse development in the central area”. The development is compatible with the surrounding mixed-use development within The Fields/District area and the broader McCandless/ Centre Pointe Sub-District. The Project will not create adverse impacts on adjacent

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7 Resolution No. xxxx
properties with respect to noise, traffic, light, or other environmental factors beyond those previously analyzed and addressed in the original TASP Environmental Impact Report and subsequent Addendum. The site plan also demonstrates adequate internal circulation, emergency vehicle access, and pedestrian connectivity. A traffic analysis has been prepared demonstrating the Project’s anticipated traffic generation can be accommodated by the existing street network. Transportation and Fire staff have also reviewed the Project plans and are requiring conditions of approval to ensure adequate emergency vehicle access and have confirmed that the internal private streets and driveways adequately serve the development. Therefore, the Project will not be detrimental to public health, safety, and general welfare.

1d. The proposed project is in compliance with the provisions of California Environmental Quality Act (CEQA):

The proposed Project includes the development of 109 multi-family residential units and 10 Accessory Dwelling Units within an urban and mixed-use zoned area. With the proposed Development Agreement and density bonus concessions, the proposed Project meets the Metro Specific Plan zoning regulations and is consistent with the policies established in the original TASP Environmental Impact Report (EIR) and Metro Specific Plan Subsequent EIR (SCH#2006032091). The Project is also a residential development within and subject to a Specific Plan. Therefore, the Project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15182 (Projects Pursuant to a Specific Plan).

2a. The proposed use and project are consistent with the goals and policies of any Specific Plan, if applicable:

The proposed Project includes the development of 109 multi-family residential units and 10 Accessory Dwelling Units, which helps implement the range of uses and development standards as set forth in the Metro Specific Plan, particularly within the Residential Retail High Density Mixed Use (RRMU) Specific Plan land use designation. The RRMU classification allows residential-only development to have a density range between 40 to 85 units per acre; however, the proposed Development Agreement would preserve the minimum residential density of 31 units per acre previously allowed for the subject property under the Transit Area Specific Plan (TASP). The current Project is proposed at a residential density of approximately 20 units per acre, which is well below the minimum allowed density within the Metro Specific Plan; however, with density averaging across The Fields/District development, the Project meets the TASP minimum density of 31 units per acre average. Furthermore, the Project would contribute to the Metro Plan vision of creating a complete and unique urban neighborhood, which includes a mix of residential and retail uses, affordable housing, a variety of shared public spaces, and a strong sense of place with quality architecture and key landmarks. The Project would develop a currently vacant parcel into new housing, including affordable units, that supports the transit- oriented neighborhood envisioned by the Metro Plan. The inclusion of nine live/work units along Market Street also introduces a mixed-use component that supports the Metro Plan’s goal of providing neighborhood services and a balance of jobs and housing near transit. The Project’s location within the McCandless District is also consistent with the established pattern of townhome development in this subdistrict. Additional Metro Plan policy findings can be found in Table 3 below:

Table 3: Metro Plan Policy Compliance
Policy Conformance
LU 1.1 Establish the Land Use
Classifications to identify areas
appropriate for residential,
commercial, mixed use, office, and
industrial development. Retail
commercial uses shall be concentrated
in a pedestrian-oriented pattern.

Consistent. The Project site is zoned MXD2-Metro, which includes “a mix of retail, restaurant, entertainment, and commercial services uses on the ground floor and residential or office uses on upper stories. The proposed 109-unit townhome development with nine live/work units along Market Street is consistent with the mixed-use character of the MXD2
designation by providing both residential and commercial uses.

LU 2.1 and 2.3 “Arrange the highest
density areas supported by strong
pedestrian and bicycle access ways
Consistent. The Project is located at the intersection of Great Mall Parkway and McCandless Avenue, directly across from the Great Mall and within proximity to the VTA Great Mall

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8 Resolution No. xxxx
and along the major corridors and
transit-adjacent areas” and
“Establish a strong pedestrian and
transit orientation throughout the
Plan Area and limit development
design that prioritizes automobile
access to the detriment of pedestrian
and bicycle access”..
light rail station. The Metro Plan identifies Great Mall Pkwy.

As a major corridor where transit-oriented development is envisioned. The Project’s location supports transit ridership by placing 109 new residential units and 10 ADUs within walking distance of light rail service.

LU 3.2 Accommodate housing for a
range of housing types, income levels,
and rental and ownership models,
including the following: Live/work
units, Group housing, Co-living,
Senior housing, Student housing”.

Consistent. The Project proposes 109 townhome units with 10 ADUs that provides transit-oriented housing within the
McCandless District that diversifies the housing stock in the Metro Plan. The Project includes nine live/work units along Market Street, which is one of the housing types specifically listed in Policy LU 3.2. The townhome product type also adds variety to the Metro area’s housing products, which includes higher-density apartment and condominium units.

Furthermore, the Project will comply with the City’s
Inclusionary Housing Ordinance by providing 22 off-site affordable units at the nearby Gideon Apartments.

PPS 1.7 Parks, Public Space, and
Open Space: Locate parks and
outdoor gathering spaces adjacent to
higher density residential
development to provide a visual and
activity for housing, as well as to
ensure safety through casual
surveillance.

Consistent. The Project is located approximately 1,000 feet away from McCandless Park, the largest park in the Metro area, which provides recreational amenities for the McCandless Subdistrict. The Project meets the minimum common open space requirement of 100 square feet per unit (10,900) with 27,832 square feet of public open space in the form of an urban plaza at the corner of Market Street and McCandless Avenue.

2b. The proposed siting, form, architectural style, materials, and other elements of multi-family residential and mixed-use developments are consistent with City Objective Design Standards:

The proposed Project is designed in a Northwest Contemporary architectural style, incorporating clean, boxy massing, flat and low-slope roofs, large black-framed windows, and a mixed-material façade. The building massing is articulated through projections and recesses at adjacent townhomes, as well as staggered balconies that help break up the length of the structures, while top-level terraces create a stepped-back effect that reduces the overall sense of verticality. The residences are arranged in a multi-story townhome format, generally three and four levels tall, maximizing vertical space with parking and entry at the ground level, main living areas on the second and third floors, and bonus or entertaining rooms opening onto large covered terraces at the top level to take advantage of light and views. The roof design combines shed roofs, flat balcony and terrace roofs, and curved sloping roofs at prominent elements, creating a dynamic contemporary roofline. Large windows enhance natural light and provide expansive views throughout the development. Exterior materials consist primarily of stucco with lap siding accents for added texture, while brick at the ground floor introduces a natural element that helps ground the modern aesthetic. The color palette draws from coastal tones, including whites, cool grays, blues, and green-blues, complemented by the warmer earth tones of the brick. The proposed architectural style complements the surrounding neighboring residential developments and meets the intent of the City’s Objective Design Standards as shown in Table 4, thus meeting this finding.

Table 4: Objective Design Standards

Policy Conformance
Section 2.1 - Block Structure /
Maximum Block Length
Consistent - The ODS require that all projects have a maximum block length of 400 feet and a maximum perimeter length of 1,400

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feet. Although the Project site exceeds both amounts, the size and shape of the lot is existing and will not be increased. Additionally, the block is broken up by private driveways and pedestrian paths along the perimeter. Therefore, the Project is consistent with the intent and purpose of this requirement to divide large blocks and create multiple buildings.

Section 2.3 - Shared / Publicly
Accessible Open Space
Compliant – As a Large Site, the Project is required to provide shared publicly accessible open space in addition to minimum usable open space. For projects with an average building height less than 45 feet such as this one, publicly accessible open space shall be equal to or greater than 5% of the lot area, which is approximately 11,957 square feet. This Project meets this requirement through the Urban Plaza located at the intersection of Market Street and McCandless Avenue.

Section 3.1 - Sidewalk Design Consistent - The ODS require that residential projects fronting a public street right-of-way provide a minimum effective sidewalk width of 12 feet, with a minimum 6-foot-wide pedestrian clear zone. The Project fronts Great Mall Parkway to the north, McCandless Avenue to the west, Market Street to the south, and Centre Pointe Drive to the east. Project frontage along Great Mall Parkway will have a 10-foot sidewalk and 11 feet of landscaping.

Project frontage along McCandless will have an 8-foot sidewalk and between 10 and 16 feet of landscaping. Project frontage along Market Street will have an 8-foot sidewalk and 12 feet of landscaping. Lastly, frontage along Centre Pointe will have an 8- foot sidewalk and approximately 12 feet of landscaping.

Section 3.4 – Ground Floor Uses Consistent – The ODS require that active frontages have a minimum interior depth of gross building area of 15 feet for live/work units. As proposed, the Project provides between 12 and 14 feet and 8 inches of depth. However, due to the limited right- of-way along Market Street, a 15-foot active frontage is infeasible.

The provided frontage area is suitable for a narrow street like Market Street.

Section 3.9 – Standards for
Special Conditions and
Adjacencies
Consistent – The ODS require that all ground floor residential units shall be set back a minimum 40 feet from face-of-curb when adjacent to a Major Roadway, which is defined as a street with three or more travel lanes in each direction. Great Mall Parkway meets this definition and is directly north of the Project site. The Project proposes a building setback between 20 to 22 feet along Great Mall Parkway. However, the Project provides a number of large street trees along the Great Mall Parkway and approximately 10 feet of right-of-way dedication. The proposed height of the proposed buildings along Great Mall Parkway are also no more than 49 feet, which meets the intent of promoting gradual transitions from high density development to surrounding areas.

Furthermore, no sound attenuation walls are proposed in order to lessen any potential noise impacts and maintain a pedestrian- friendly environment
Section 5.1 - Ground Floor
Design
Compliant - The ODS require that all ground floor residential units have an entry with direct access to the sidewalk, path, or open space. Ground floor residential facades must have a minimum 30% transparent glazing between 4 and 7.5 feet in height above finished floor, with transparent glazing that is maximum 50%

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10 Resolution No. xxxx
reflective and with visible light transmittance greater than 80%.

For the nine live/work units proposed along Market Street, the facades are required to have a minimum 50% transparent glazing between 3 and 7.5 feet in height above finished floor. This has been added as a condition of approval within the attached Resolution (COA #17).

Section 5.2 - Residential Unit
Entry Types
Compliant – The ODS require that private entries into ground floor residential units shall be designed to provide human-scaled detailing, enhanced pedestrian experience, transition between public and private space, spaces for residents to gather and spend time outdoors, and resident privacy. The Project proposes Terrace entrances for all residential units, which are limited to 30 inches above the grade of the back of the adjacent sidewalk or accessway.

Terrace entrances are also required to have a minimum path width of 42 inches and fences or walls have a maximum of 42 inches in height and have a minimum transparency of 40%. Although no fences are proposed at this time, the height maximum has been added as a condition of approval within the attached Resolution (COA #19).

Section 5.5 - Building Materials Compliant – The ODS require building facades to include a variation in building materials, with primary materials covering between 55% and 65% of each exterior, excluding windows, doors, garage doors, and building trims. This Project accomplishes this by including metal-clad roofing materials, aluminum storefronts, and “Hartford” brick veneer, in addition to painted stucco and siding.

Section 6.2 - Usable Open Space/
Common Open Space
Compliant – The ODS require that Common Open Space be
immediately adjacent to common spaces, hallways, or residential units, be accessible to all residents, and have a minimum width and length of 20 feet. The common open space must include a minimum of 20% landscaping, with a minimum of 20% area
planted with ground cover/ shrubs, and a minimum of one tree planted per 400 square feet of open space area. Staff finds that the project is consistent with ODS Section 6.2 via the proposed urban plaza.

2c. The proposed siting, form, and architectural style of single-family residential, commercial, and industrial developments are appropriate for the project site and surroundings and create a visually cohesive design, and are consistent with all applicable design standards in this Title:

The above finding is not applicable to the Project because it is a multi-family development.

SECTION 4: Conditional Use Permit Findings (MMC Section XIII-D.4.030)

1. The proposed use is consistent with the goals and policies of the General Plan; See Site Development Permit Finding 1.b above.

2. The proposed use is consistent with the goals and polices of any Specific Plan if applicable; See Site Development Permit Finding 2.a above.

3. The proposed use is appropriate for the zone in which it is located, is compatible with uses in the zone, and complies with all other applicable provisions of this Title;

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11 Resolution No. xxxx
The proposed residential townhome development will not be detrimental or injurious to property or improvements in the vicinity nor to the public health, safety, and general welfare. The Project site is a vacant, undeveloped parcel located within the McCandless District of the Metro Specific Plan area, which is planned and zoned for high-density, transit-oriented residential development. The surrounding area includes existing residential and mixed-use developments to the west and south of the Project site, and a well-established commercial shopping center to the north across from Great Mall Parkway. Therefore, the Project will complete the neighborhood by contributing to and diversifying the existing housing mix with ADUs and live-work units. Moreover, the McCandless Subdistrict specifically calls out townhomes as part of the Metro Plan’s vision. The residential units of the proposed Project are compatible with the neighboring commercial uses as residents will be able to shop nearby and/or using the Milpitas Transit Center to commute to work. Furthermore, with the density bonus concessions and Development Agreement, the Project complies with all applicable zoning and development standards in this Title. The Project has also been designed to comply with all applicable building, fire, and safety codes, and conditions of approval will be imposed to ensure ongoing compliance.

4. The proposed use will not be materially detrimental to the health, safety, and welfare of the public or the property and residents in the vicinity;
See Site Development Permit Finding 1.c above.

5. The subject site is physically suitable for the use being proposed, including access and utilities; The proposed 5.49-acre Project is adequate in size and shape to accommodate the proposed 109 townhome units and 10 ADUs, including all required setbacks, parking, landscaping, and open space. The Project provides two-car garages for each residential townhome, an approximately 28,000 square-foot urban plaza to be used for public open space, and sufficient setbacks and public rights-of-way, which meet the applicable standards of the MXD2-Metro zone. The site plan also demonstrates adequate internal circulation, emergency vehicle access, and pedestrian connectivity. A traffic analysis has been prepared demonstrating the Project’s anticipated traffic generation can be accommodated by the existing street network. Transportation and Fire staff have also reviewed the Project plans and are requiring conditions of approval to ensure adequate emergency vehicle access and have confirmed that the internal private streets and driveways adequately serve the development. The Project will connect to existing utilities via tie-ins along McCandless Drive to the west and Great Mall Parkway to the north.

6. The design, location, size, and operating characteristics of the proposed use are compatible with existing and reasonably foreseeable future land use and circulation in the vicinity; The Project site is located at the intersection of Great Mall Parkway and McCandless Drive. Great Mall Parkway is an arterial street, while McCandless Drive is a collector street. The site is within half a mile of the Milpitas BART station and VTA light rail stations, providing excellent multi-modal transit access. A traffic analysis has been prepared demonstrating the Project’s anticipated traffic generation can be accommodated by the existing street network. Furthermore, the Project would result in a significant decrease in the number of residential units from what was previously analyzed through the Environmental Impact Report for the Milpitas Metro area. Generally, a lower level of development results in fewer environmental impacts related to public services, utilities, natural resources, local vehicular traffic, and other impact categories. Therefore, the design, location, size, and operating characteristics of the Project are suitable for the Project site and compatible with the surrounding area. The Metro Specific Plan also envisions a mix of housing and pedestrian-oriented environment in this area, which the Project will help fulfill by introducing medium-density housing with ADUs, affordable housing, and live-work units to complete The Fields/District development.

7. The proposed Project is in compliance with the provisions of California Environmental Quality Act.

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and subject to a Specific Plan. Therefore, the Project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15182 (Projects Pursuant to a Specific Plan.

SECTION 5: Density Bonus Findings (California Government Code Section 65915)

1. The maximum allowable base density specified in the General Plan, including any other permitted increases to density.

The proposed Project includes 109 townhome units, equaling a residential density of approximately 20 dwelling units per acre (du/ac), which does not meet the allowed minimum density of 40 du/ac in the MXD2-Metro zoning district. However, previous approvals established the use of density averaging across The Fields/District development, allowing flexibility in the distribution of units among the various lots.

Furthermore, the proposed Development Agreement would preserve the minimum residential density of 31 du/ac previously allowed for the subject property under the Transit Area Specific Plan (TASP). Therefore, with density averaging across The Fields/District development, the Project would meet the TASP minimum density of 31 units per acre average.

2. All affordable units shall be reasonably dispersed throughout the project, shall contain on average the same number of bedrooms as the non-affordable units in the project, and shall be comparable with the non- affordable units in terms of appearance, materials and finished quality. The Planning Commission may recommend to the City Council modifying the requirements as to unit size or type, if it is found that such a modification would better serve the affordable housing need of Milpitas.

The Applicant has proposed to convert 22 existing apartment units from an adjacent mixed-use development from market-rate units to low- and very-low-income affordable units. As most units in the apartment are currently occupied, market-rate units can only be converted to BMR units once the units become vacant or available. The affordable unit sizes and bedroom counts will be identified and approved by the Office Housing Department as meeting the intent of the Affordable Housing Ordinance (AHO) prior to Building Permit Issuance. This has been added as Condition of Approval No. 25 within the attached Resolution. The development will need to have converted 22 existing apartment units to BMR units by first occupancy and half of the units being converted prior to June 30, 2027. Prior to occupancy, the applicant must execute an agreement with the City imposing appropriate ownership controls on the affordable units as required by the AHO. Since the market-rate units to be converted to BMR units have already been constructed and are existing, the appearance, materials, and finished quality of BMR units will be the same as those of the remaining market-rate units.

3. Prior to final building inspection and occupancy for a project containing affordable units, the applicant shall execute and record at the Santa Clara County Recorder’s Office the City’s Agreement Imposing Restrictions on Real Property, which Agreement shall explain the affordability requirements. The agreement shall be approved by the Milpitas City Attorney prior to recordation; The Project has been conditioned to provide an agreement to the City of Milpitas explaining the affordability requirements, processes and procedures, to the satisfaction of the Milpitas City Manager prior to the release of final Certificate of Occupancy.

4. Retaining Affordability. A developer shall agree to, and the City shall insure continued affordability of, all lower- or very low-income density bonus units for thirty (30) years or a longer period of time, if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.

Prior to final building inspection and occupancy for the Project containing affordable units, the applicant shall execute and record at the Santa Clara County Recorder’s Office the City’s Agreement Imposing Restrictions on Real Property, which Agreement shall explain the affordability requirements, including continue affordability for low- and very low-income households. The agreement shall be approved by the Milpitas City Manager prior to recordation.

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5. Affordable Rents. Those units targeted for lower-income households, as defined in Section 50079.5 of the Health and Safety Code shall be affordable at a rent that does not exceed thirty (30%) of sixty (60%) percent of the Santa Clara County median income. Those units targeted for very low-income households, as defined in Section 50105 of the Health and Safety Code, shall be affordable at a rent that does not exceed thirty (30%) of fifty (50%) percent of County median income.

Although the Project proposes for-sale townhomes dwelling units for sale, the applicant proposes to convert 22 existing market-rate apartment units from the adjacent mixed-used development to 18 low- and 4 very low-income units to meet the City’s Affordable Housing Ordinance through an alternative means of compliance, which requires City Council approval. The Project will be subject to an affordable housing agreement, which must be approved by the City and executed prior to the release of final Certificate of Occupancy. The agreement will require the low- and very low-income units to be available at a rent that does not exceed the maximum limits established in Section 50079.5 of the Health and Safety Code. As apartment units in the Gideon development become vacant or available, the applicant will be required to deed restrict and rent those units in compliance with the affordable housing agreement and in a manner that meets the intent of the City’s Affordable Housing Ordinance.

6. Relation to Statute. Density bonus requirements not specified in these regulations shall be governed by the State Density Bonus Law, Government Code section 65915, et seq.

The applicant has identified and requested bonus concessions held within the State Density Bonus Law, and the Planning Department supports this request. As such, the applicant is requesting the following concessions: a decrease in required ground floor retail within the MXD2-Metro zoning district, and a decrease in the required Large Retail Storefront sidewalk, as stated within the Metro Plan. The MXD2- Metro zone requires that “ground floor retail and active uses” are required on 80% of frontages on any one blockface along Activity Streets as identified within the Metro Plan. The Metro Plan identifies three of the Project site’s frontages as Activity Streets, along the west, south, and east frontages. Since the Project only proposes active uses along Market Street to the south, a concession is required for this standard. The Metro Plan also identifies Activity Streets as having a 18-foot sidewalk. Due to the nature of the townhome development and the size of the lot, this requirement would be infeasible to the developer, so a concession is requested for this as well.

SECTION 6: Tentative Map Findings

1. The tentative subdivision map is consistent with the General Plan.

The Vesting Tentative Map is necessary for the proposed multi-family residential Project, which is consistent with the General Plan land use designation of Milpitas Metro Specific Plan (Metro Plan), which encourages high-density, mixed-use, transit-oriented development within the McCandless/Centre Pointe Sub-District. As shown in Table 3 of the staff report, the Project complies with General Plan policies LU 1-4, LU 2-1, LU 5-1, LU 5-3, CD 5-5, and CD 6-5. The Vesting Tentative Map is also necessary for the development of a currently vacant 5.49-acre parcel, thereby activating an underutilized site and contributing to the existing neighborhood fabric of the area and complete The Fields/District development and neighborhood. Therefore, the Vesting Tentative Map is consistent with the goals and policies of the General Plan.

Furthermore, the Project is consistent with the Milpitas General Plan as demonstrated and outlined in Table 3 above.

2. None of the conditions identified in California Government Code Section 66474 existing, to wit:
a. The proposed map is not consistent with applicable general and specific plans as specified in Government Code Section 65451.

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averaging across The Fields/District development, allowing flexibility in the distribution of units among the various lots. Furthermore, the proposed Development Agreement would preserve the minimum residential density of 31 du/ac previously allowed for the subject property under the Transit Area Specific Plan (TASP). Therefore, with density averaging across The Fields/District development, the Project would meet the TASP minimum density of 31 units per acre average. b. The design or improvement of the proposed subdivision is not consistent with applicable general and specific plans.

The design and improvements of the Vesting Tentative Map are consistent with the General Plan in that it would allow for multifamily residential development with associated public improvements, which are consistent with the applicable General Plan goals and policies as described in Tentative Map Finding 1. The Project is also consistent with the policies associated with the Milpitas Metro Specific Plan (Metro Plan), as identified in Tables 4 and 5, except for the commercial component along Activity Streets, which is allowed per State Density Bonus Law. The Project site is located within the McCandless District of the Metro Plan, which is characterized by high-density mixed-use development along larger, busier streets in the northern area and lower density townhouse development in the central area of the District. The Vesting Tentative Map would allow for development that is compatible with and would complete the surrounding neighborhood consistent with the Metro Plan’s vision for the McCandless District. c. The site is not physically suitable for the type of development.

The Project site is surrounded by property designated for mixed-use development under the City’s General Plan and zoned for this type of development under the Metro Plan and MXD2-Metro zones.

The proposed Project is also known as Lot 3 within the larger The Fields/ District development, which is nearly built-out and already developed with 762 residential units and over 71,000 square feet of commercial/retail space. The proposed Project will add 119 dwelling units with the included ADUs and will complete The Fields/District development. In addition, the site is suitable for the proposed townhome development based on the location and physical attributes of the site. The site is located in an urban context suitable for multifamily development and is approximately 5.49 acres in size, which is sufficient to accommodate the development. The Vesting Tentative Map includes the necessary infrastructure improvements to adequately serve the site from a transportation and utilities perspective.
d. That the site is not physically suitable for the proposed density of development.

The Project site is suitable for the proposed medium density townhome development based on the location and physical attributes of the site. The site is located in an urban context suitable for medium density multifamily development and is approximately 5.49 acres in size, which is sufficient to accommodate the proposed density of development. The Vesting Tentative Map includes the necessary infrastructure improvements to adequately serve a multifamily residential development at the proposed density.
e. The design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.

The Project, including the subdivision and its associated improvements, is located within a heavily urbanized area and is surrounded by a mixture of commercial and mixed-use development.

Therefore, it will not cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.
f. The design of the subdivision and its associated improvements, has been designed in a manner that will not cause serious public health problems.

The Project, including the subdivision and its associated improvements, has been designed in a manner that will not cause serious public health problems. The Project has been reviewed by the Building, Housing Fire, Land Development, Traffic, Public Works, and Solid Waste Departments.

The Vesting Tentative Map includes various public improvements in the public rights-of-way

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related to transportation and utilities to ensure the Project will be adequately serviced and thereby preserve public health and wellness. Public improvements include utility services such as water, wastewater, storm drain, gas, electrical, and telecommunications. Pavement restoration along the project frontage on McCandless Drive, Center Pointe Drive, and Great Mall Parkway per City Standards will be required as part of the Project. Project frontage along Great Mall Parkway will have a new 10-foot sidewalk and 11 feet of landscaping. Project frontage along McCandless will maintain the existing 8-foot sidewalk and provide between 10 and 16 feet of landscaping. Project frontage along Market Street will have a new 8-foot sidewalk and 12 feet of landscaping. Lastly, frontage along Centre Pointe will have a new 8-foot sidewalk and approximately 12 feet of landscaping.
g. The design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision.

Upon review of the subdivision map, it has been determined that the design of the subdivision or the type of improvements will not conflict with any easements acquired by the public at large, for access through or use of, property within the proposed subdivision. Existing easements include public service utility easements throughout the perimeter of the site as well as a 20-foot PG&E easement that cuts through the middle of the site. All utility easements will be located within or near public rights-of-way and the 20-foot PG&E easement will be quitclaimed or removed as part of this development. Therefore, the proposed subdivision and relevant improvements will not conflict with easements or access to the property.

SECTION 7: Development Agreement Findings (MMC Section XIII-D.14.050) The proposed Project is considered to be eligible for a Development Agreement per City Council Resolution No. 6642 Sections 2.3(a) and 2.3(c), regarding acreage and general welfare of the community. Although the Project site is under 10 acres, it is part of a larger development (The District), which encompasses multiple lots totaling over 20 acres. Furthermore, the public health, safety and general welfare of the citizens of City will best be served by accepting an Application for consideration by the Planning Commission and City Council. The Development Agreement will facilitate the final step in a large development that has taken many years to complete and activate an otherwise vacant lot that has remained underutilized during that time. The Project will establish affordable housing close to public transportation and other infrastructure and amenities that will particularly benefit lower income households. The Project is in a highly urbanized and developed area where the construction of such affordable housing may not otherwise be forthcoming.

1. The Development Agreement is consistent with the goals, policies, general plan land uses, and programs specified in the General Plan;
The proposed Development Agreement (DA) would further the General Plan goals and policies by allowing for the proposed Project with additional construction and improvements only allowable through the benefit of this DA. The Project would provide a mix of townhomes, accessory dwelling units, and live-work units in proximity to the Milpitas Transit Center, which is consistent with the General Plan’s vision for the Metro Specific Plan area. Furthermore, as part of DA and as a public benefit, the Project would provide low- and very-income level units beyond what is required by the Affordable Housing Ordinance, which will help the City achieve its affordable housing goals in its Housing Element. Lastly, the DA also includes a voluntary $400,000 contribution to the City as a community benefit, which can be used to fund City services and public improvements identified in the General Plan.

2. The Development Agreement is consistent with any Specific Plan, if applicable; The proposed Project is located within the Milpitas Metro Specific Plan (Metro Plan, formerly TASP).

The Metro Plan envisions the McCandless Subdistrict with high-density mixed-use development along larger streets and lower-density townhouse developments. The proposed DA would allow for the proposed Project, which includes a mix of housing types (townhomes, ADUs, and live-work units) that are aligned with the Metro Plan’s vision for this subdistrict. The live-work units would also contribute to the

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pedestrian-oriented, vibrant atmosphere envisioned along Market Street. Lastly, the DA includes a public benefit of four low- and one very low-income units, which would provide lower-income affordable housing near public transit, which is another goal of the Metro Plan.

3. The Development Agreement and accompanying development maps, plans, and other supporting information are compatible with the uses authorized in, and the performance and development standards prescribed for, the zone in which the subject parcel or site is located; The DA would allow for the Project site to be developed with multifamily residential development, which is permitted by-right in and consistent with the intent of the MXD2-Metro zoning district. The purpose of the MXD2-Metro zoning district is to create and enhance areas with a mix of retail, restaurant, entertainment, and commercial service uses on the ground floor and residential or office uses on upper stories, while maintaining a pedestrian-oriented streetscape. Although the Project does not comply with the density and active commercial requirement of the MXD2-Metro zone, the DA would preserve the previously applicable minimum density in the TASP (30 du/ac), which the Project complies with once density averaging is applied throughout The Fields/District development. A waiver through the Density Bonus Permit would also reduce the commercial requirement for the Project, which is being met through the live-work units. Therefore, the proposed DA and accompanying development are compatible with the uses allowed in the applicable zoning district.

4. The Development Agreement is in conformity with and will promote public convenience, general welfare, and good land use and development practices
The proposed DA promotes public convenience and general welfare by providing affordable housing (four low- and one very low-income units) within walking distance of the Milpitas BART station and VTA light rail. These deed-restricted affordable units will not only provide rental savings over 55 years to the Milpitas community but also provide housing options near public transit for disadvantaged persons who are often dependent on public transit. Furthermore, the DA would allow for the proposed Project, which includes ADUs and live-work units. ADUs provide yet another affordable option for prospective tenants and allows homeowners to collect rental income by renting out their ADUs to tenants. Meanwhile, live-work units provide much-needed housing for artists, artisans, and small business owners and entrepreneurs in a convenient location.

5. The Development Agreement shall be shown to be of greater benefit to the community than development absent the Development Agreement
The proposed Development Agreement would provide a one-time voluntary $400,000 contribution and the conversion of 4 low-income and 1 very low-income apartment units within the adjacent Gideon development as a community benefit to offset the loss of market-rate units, which would result from preserving the lower minimum residential density previously allowed for the subject property under the TASP (30 du/ac) rather than applying the minimum density in the Metro Specific Plan (40 du/ac). While allowing a lower density Project through a DA would result in fewer units on the subject property, the Project would provide affordable units at a lower income level than would otherwise be provided, which provides a significant public benefit to the Milpitas community through rental savings for future tenants.

6. The term or duration of the Development Agreement has a commensurate relationship to the benefit(s) provided;
The proposed DA has an initial term of three (3) years. Commencement of construction within 3 years from the Effective Date would vest the DA. “Commencement” would include the property owner/ applicant having been issued a building, demolition, and/or grading permit. Two 2-year extensions may be granted by the City provided that the property owner/ applicant is not in default of its obligations under the DA.

The term of the DA is commensurate to the benefit provided in that the term is sufficient to allow for construction of the Project and implementation of the proposed public benefit.

7. The Development Agreement contains the mandatory provisions specified in California Government Code Section 65865.2 and any other terms required by Council;

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Government Code Section 65865.2 requires that a Development Agreement include the duration of the agreement, the permitted uses of the property, the density, the maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes. The proposed DA meets this requirement by including all of the aforementioned provisions.

8. The Development Agreement complies with all other applicable requirements of California Government Code Section 65864 et seq;
The Planning Commission is scheduled for public hearing on May 6, 2026 and the City Council is scheduled to consider the Development Agreement and Project for approval on May 19, 2026.

SECTION 8: No Net Loss Findings (Gov. Code, §§ 65863 and 66300) The Project, as conditioned and approved, does not result in changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reduce the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district below what was allowed under the land use designation or zoning ordinances of the City in effect as of January 1, 2018, and is therefore approved in conformity with California Government Code Section 66300.

In conformity with California Government Code Section 65863, any reduction caused by the approval of this Project in the number of units anticipated for construction in the Housing Element Sites Inventory contained in the Housing Element of the General Plan is found to be consistent with the General Plan, together with the Housing Element, including because the Project would continue to contribute meaningfully to the development of housing at levels greater than or equal to the applicable residential density for the property at the time of the General Plan’s adoption and moreover would allow and incentivize the development of a greater number of affordable units closer to transportation and other community resources than was otherwise anticipated in the Housing Element Sites Inventory. The Project’s residential density is consistent with the Housing Element, and the remaining sites identified in the Housing Element remain unchanged and are adequate to meet the requirements of Government Code Section 65583.2 and to accommodate the City’s share of the regional housing need pursuant to Section 65584.

This finding demonstrates that the Project is not subject to Government Code Section 65583.2 and will still ensure that the City can accommodate the remaining share of the regional housing need pursuant to Section 65584.

SECTION 9: Affordable Housing Ordinance Exception
The City Council may allow an exception to the requirement to construct on-site affordable units for a residential ownership project when the applicant contributes to the City's affordable housing needs through one of the alternatives set forth in MMC Sections XII-1-4.00-XII-1-4.02. Pursuant to MMC XII-1-4.03, the City Council, at its discretion, may also approve other alternative methods of compliance with the AHO. The City Council may therefore approve the Applicant’s request to develop the affordable units proposed through conversion of rental units at the Gideon property by adopting the following findings:

1. Such alternative method meets the purpose of the AHO; and

The stated purpose of the AHO is to (a) enhance the public welfare and assure that further housing development contributes to the attainment of the City's housing goals by increasing the production of residential units affordable by households of very low, low and moderate income and (b) assure that the limited remaining developable land in the City's planning area is utilized in a manner consistent with the City's housing policies and needs. (MMC § XII-1-1.00.) The Project will establish affordable housing close to public transportation and other infrastructure and amenities that will particularly benefit lower income households. The Project will provide that affordable housing at lower income categories than would otherwise be provided by the on-site build requirement of the AHO and provide low- and very low-income housing that many other developers have been unwilling or unable to provide. The Project is in a highly urbanized and developed area where the construction of such affordable housing may not otherwise be forthcoming.

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2. The development as proposed with the exception as provided pursuant to this Section would further the City's low and/or moderate-income housing goals as contained in the Housing Element; and

Historically, the City has exceeded its Regional Housing Needs Allocation (RHNA) for market-rate but struggled to meet its RHNA for the low- and very low-income levels.

Furthermore, while the Project would provide smaller apartment instead of townhouse BMR units, these units would be at the low-/very low-income levels, providing greater rental savings for the Milpitas community relative to that of moderate-income units. The applicant has also demonstrated how the 18 low-/very-low apartments units are equivalent to or exceed the construction cost or value of 17.35 moderate townhomes. See the attached Affordable Housing Equivalency Analysis for more information.

3. The development with the exception either (i) will result in at least two of the following:

a) The development of a larger number of deed-restricted affordable units than would be created under the on-site requirement;
b) The development of a larger number of deed-restricted affordable bedrooms than would be created under the on-site requirement;
c) The development of a larger amount of deed restricted affordable living area than would be created under the on-site requirement;
d) The development of deed-restricted affordable units at a lower average income target as compared to the affordable units that would be created under the on-site requirement;\ or (ii) will provide other community benefits that exceed the benefit of constructing on-site affordable units.

If the project is a residential ownership project, 100% of the affordable units must be reserved for very low, low, or moderate-low-income households. As the project proposes for-sale townhomes, all affordable units are required to be at the moderate-income level or lower. Applying the 15% requirement to the 109 market- rate townhomes yields an affordable housing obligation of approximately 16.35 moderate-income townhomes. Per the AHO, a fractional unit equal to 0.5 or greater is rounded up, resulting in a requirement of 17 on-site affordable units. However, in-lieu fees may be paid for requirements to construct fractional units of less than 0.5 units as outlined in MMC Section XII-1-3.00.

The Project proposes to provide a larger number of deed-restricted affordable units (Finding 3.a) and some of those units at a lower income level (Finding 3.d) than would be created under the on-site requirement. Of the 22 BMR rental units, 18 would be at the low-income level and 4 would be at the very low-income level. Of the 18 low-income units, 15 are proposed as part of this alternative means of compliance with the AHO, and of the 4 very low-income units, 3 are proposed as part of this alternative means of compliance with the AHO.

As such, the Project proposes an alternative means of compliance consisting of 18 instead of 17 BMR units, 3 of which would be at the very low- instead of low-income level. The Project proposes to reserve the remaining BMR units (3 low- and 1 very low-income) as a public benefit as part of the proposed Development Agreement. The Development therefore provides a larger number of deed-restricted affordable units at a lower income target than would otherwise be created under the on-site requirement.

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SECTION 10: City Council Decision and Approval.

The City Council of the City of Milpitas hereby approves Site Development Permit Amendment P-SA25- 0002, Vesting Tentative Map P-TM26-0001, Conditional Use Permit Amendment P-UA25-0003, Density Bonus Permit P-DB26-0001, and Development Agreement DA26-0001, based on the above findings and subject to the Conditions of Approval attached hereto as Exhibit “1” and incorporated herein.

PASSED AND ADOPTED this 19th day of May, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Suzanne Guzzetta, City Clerk

APPROVED:

Carmen Montano, Mayor

APPROVED AS TO FORM:

Christian M Curtis, City Attorney

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EXHIBIT 1

SITE DEVELOPMENT PERMIT AMENDMENT SA25-0002, VESTING TENTATIVE MAP P-TM26-0001, CONDITIONAL USE PERMIT AMENDMENT P-UA25-0003, DENSITY BONUS PERMIT P-DB26-0001, AND DEVELOPMENT AGREEMENT (DA26-0001)
1320 McCandless Drive (APNs 086-33-112, -113, and -114)

The City of Milpitas Planning Commission and City Council approve Site Development Permit Amendment P- SA25-0002, Vesting Tentative Map P-TM26-0001, Conditional Use Permit Amendment P-UA25-0003, Density Bonus Permit P-DB26-0001, and Development Agreement DA26-0001, in accordance with Section XIII-Part D of the Milpitas Municipal Code, subject to and conditioned upon all applicable State and local laws and regulations and the Conditions of Approval outlined below. This Permit is to allow the development of 109 townhome residential units and 10 Accessory Dwelling Units (“Project”) on a vacant 5.49-acre site within the Metro Specific Plan at 1320 McCandless Drive (APN: 086-33-112, -113, and -114), subject to all necessary reviews, approvals, studies, and inspections for the issuance of building permits and other required entitlements and approvals.

APPROVED SUBJECT TO THE FOLLOWING CONDITIONS OF APPROVAL:

General Conditions

1. General Compliance. The applicant and owner, including all successors in interest (collectively “Permittee”) shall comply with each and every condition set forth in this Permit. Site Development Permit Amendment SA25-0002, Vesting Tentative Map (P-TM26-0001), Conditional Use Permit Amendment (P-UA25-0003), Density Bonus Permit (P-DB26-0001), and Development Agreement (DA26-0001) (“Permit”) shall have no force or effect and no building permit shall be issued unless and until all things required by the below- enumerated precedent conditions have been performed or caused to be performed and the Resolution of approval has been recorded by the Permittee with the Santa Clara County’s Recorder Office. (P)

2. Modifications to project. Any deviation from the approved site plan, floor plans, or other approved submittal shall require that, prior to the issuance of building permits, the Permittee shall submit modified plans and any other applicable materials as required by the City for review and obtain the approval of the Planning Director or designee. If the Planning Director or designee determines that the deviation is significant, the Permittee shall be required to apply for review and obtain approval of the Planning Commission, in accordance with the Zoning Ordinance. (P)

3. Effective Date. Unless there is a timely appeal filed in accordance with the Milpitas Zoning Code, the date of approval of this Permit is the date on which the decision-making body approved this Permit. (P)

4. Acceptance of Permit. Should Permittee fail to file a timely appeal within twelve (12) calendar days of the date of approval of this Permit, inaction by Permittee shall be deemed to constitute each of the following:
a. Acceptance of this Permit by Permittee; and
b. Agreement by the Permittee to be bound by, comply with, and to do all things required of or by Permittee pursuant to all of the terms, obligations, and conditions of this Permit.

5. Permit Expiration. Pursuant to Section D.2.040.K of the Milpitas Comprehensive Zoning Update (CZU), this Permit shall become null and void if the development is not implemented within two (2) years, or for projects submitted with tentative maps, within the time limits of the tentative map. Pursuant to Section D.2.040.K.3 of the Comprehensive Zoning Update of the City of Milpitas, implementation is defined when: (P) a. A permit or approval shall not be deemed implemented until the applicant has obtained a grading permit and/or building permit and commenced construction, or where no grading or building permit is required, has commenced the allowed use on the subject site in compliance with the approval; or

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b. Construction shall be diligently pursued towards completion. If after construction commencement, work is discontinued for a minimum period of two years, the permit or approval shall expire and be deemed void; or
c. If a project is phased, each phase shall be subject to a time limit during which construction must commence.

Each subsequent phase shall have the same length of time allowed for the previous phase. The time limit for a subsequent phase shall begin when the previous phase commences construction, unless otherwise specified in the permit of approval.
d. “Commence construction” shall mean any of the following, whichever occurs soonest:
i. Completes a foundation associated with the project;
ii. Dedicates any land or easement as required from the approval; or iii. Complies with all legal requirements necessary to commence the use or obtains a Certificate of Occupancy permit.

This permit shall become null and void if the work is added to, modified, or otherwise deviated from in any significant way from the approved site plan, building plan, floor plans, or other approved submittals as determined by the Planning Director or designee.

6. Notice. Pursuant to California Government Code Section 66020, any protest filed in court relating to the imposition of fees, dedication, reservations, or other exactions to be imposed on the development project shall be filed within ninety (90) days after the date of the adoption of this Resolution. This provision serves as notice from the local agency to the Permittee that the ninety (90) day period in which the applicant may file a protest has begun under California Government Code Section 66020(d)(1). (P)

7. Cost and Approval. Permittee shall fully complete and satisfy each and every condition set forth in this Resolution and any other condition applicable to the project to the sole satisfaction of the City. Additionally, Permittee shall be solely responsible and liable for the cost to satisfy each and every condition. Permittee shall pay all required fees and charges to City at the rate in effect at time of building permit issuance, or, the rate in effect when the fees and charges are due and paid in full to City. There is no vesting of any fees or charges with the adoption of this Resolution. (P)

8. Conditions. Each and every condition set forth in this Exhibit shall apply to the project and continue to apply to the project so long as the Permittee is operating the project under the permits and approvals in this Resolution. (P)

9. Compliance with Laws. The construction, use, and all related activity authorized under this Permit shall comply with all applicable local, state, and federal laws, rules, regulations, guidelines, requirements, and policies. (CA/P)

10. Previous Approvals. Permittee shall abide and continue to comply with all previous City approvals, permits, or requirements relating to the subject property, unless explicitly superseded or revised by this Permit. (P)

11. Indemnification. To the fullest extent permitted by law, Permittee shall indemnify, defend with counsel of the City’s choosing, and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to (i) City's approval of the project, including but not limited to, the approval of the discretionary permits, maps under the Subdivision Map Act, and/or the City's related determinations or actions under the California Environmental Quality Act, and (ii) Permittee’s construction, operation, use, or related activity under this Permit. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proceeding. Permittee shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in

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this condition. Permittee shall pay to the City upon demand or, as applicable, to counsel of City’s choosing, any amount owed pursuant to the indemnification requirements prescribed in this condition. (CA)

12. Revocation, Suspension, Modification. This Permit may be suspended, revoked, or modified in accordance with Section D.18.070 of the Milpitas Zoning Code. (P)

13. Severability. If any term, provision, or condition of this Permit is held to be illegal or unenforceable by the Court, such term, provision, or condition shall be severed and shall be inoperative, and the remainder of this Permit shall remain operative, binding, and fully enforceable.

14. Conformance. Permittee shall develop the approved Project in conformance with the plans approved by the Planning Commission, and in accordance with these Conditions of Approval. Any deviation from the approved site plan, elevations, materials, colors, landscape plan, or other approved submittal shall require that, prior to the issuance of building permits, the Permittee shall submit modified plans and any other applicable materials as required by the City for review and obtain the approval of the Planning Director or Designee. If the Planning Director or designee determines that the deviation is significant, Permittee shall be required to apply for review and obtain approval of the Planning Commission or City Council, as applicable, in accordance with the Milpitas Zoning Code. (P)

15. Response to Conditions of Approval. Permittee shall provide a written response to comments upon submittal for building permit application. The responses should clearly indicate how each condition of approval has been addressed in the plans and shall note the appropriate plan sheet. (P)

16. Prior to the issuance of a building permit, the owner or designee shall include within the first four pages of the working drawings for a plan check, a list of all conditions of approval imposed by the final approval of the project. (P)

Planning Department Special Conditions

17. The City’s Objective Design Standards (ODS) require that all ground floor residential units have an entry with direct access to the sidewalk, path, or open space. Ground floor residential facades must have a minimum 30% transparent glazing between 4 and 7.5 feet in height above finished floor, with transparent glazing that is maximum 50% reflective and with visible light transmittance greater than 80%. For the nine live/work units proposed along Market Street, the facades are required to have a minimum 50% transparent glazing between 3 and 7.5 feet in height above finished floor. (P)

18. The commercial component as designated on the floor plan for the nine live/work units shall remain commercial and cannot be converted to residential or other use. Prior to the issuance of vertical building permits, the owner or designee shall record in the Santa Clara County Recorder’s Office a deed restriction between the City and the owner requiring the ground floor of all nine live/work units proposed along Market Street to be used as accessory “work” (i.e., commercial) space consistent with applicable laws, including zoning, in a form acceptable to the Planning Director and City Attorney. (P)

19. The City’s ODS require that private entries into ground floor residential units shall be designed to provide human-scaled detailing, enhanced pedestrian experience, transition between public and private space, spaces for residents to gather and spend time outdoors, and resident privacy. The Project proposes Terrace entrances for all residential units, which are limited to 30 inches above the grade of the back of the adjacent sidewalk or accessway. Terrace entrances are also required to have a minimum path width of 42 inches and fences or walls have a maximum of 42 inches in height and have a minimum transparency of 40%. (P)

20. Prior to the issuance of a building permit, the owner or designee shall provide updated project plans clearly indicating the location and design of thirty-five (35) short-term bicycle spaces, as required per MMC Section XIII-C.6.100 (Bicycle Parking), acceptable to the Planning Director.

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21. The Project shall demonstrate compliance with the Metro Specific Plan Subsequent EIR mitigation monitoring program.

Housing Department Conditions
The developer is requesting an exemption to XII-1-3.03 – Concurrent construction of affordable units of the AHO.

22. Affordable Housing Requirement: Permittee shall comply with the City’s Affordable Housing Ordinance, as set forth in Milpitas Municipal Code Section XI-1-3.00. The City Council has granted the following deviation from the City’s AHO (H):

a. Permittee shall reserve 22 apartment units in the Gideon apartment complex for either low or very low-income households consisting of
i. 18 low-income units
ii. 4 very low-income units
b. The location, bedroom mix, and dispersion of the proposed units in the Gideon property must be submitted to and approved by the Housing Department for compliance with the AHO.

23. In-Lieu Fee: As outlined in XII-1-3.00 - 15 Percent Affordability Requirement of the AHO , if the 15 percent calculation results in a fractional unit that is less than 0.5 (i.e., less than half a unit), the developer may pay an in-lieu fee for that fractional unit.

24. XII-1-3.02 - Conditions of approval and XII-1-3.04 - Design and distribution of affordable units: The developer is required to provide the information outlined in these 2 sections, subject to approval by the Housing Department for compliance with the AHO. The information will be based on the apartment units to ensure the bedroom mix of the affordable units should be proportionate to the bedroom mix of market rate units in addition to other required similarities.

25. XII-1-6.00 Agreements: Prior to final building inspection and occupancy for a project containing affordable units, the applicant shall execute and record at the Santa Clara County Recorder’s Office the City’s Agreement Imposing Restrictions on Real Property, which Agreement shall explain and establish the affordability requirements for the affordable units for a period of not less than 55 years. The agreement shall be approved by the Milpitas City Attorney prior to recordation. (H)

26. Applicant shall clearly identify all affordable unit sizes and bedroom counts and submit to the Office of Housing for approval for meeting the intent of the Affordable Housing Ordinance (AHO) prior to Building Permit Issuance.

Building Department Conditions

27. Applicant shall provide revised Sheets A3.01 and A4.01 to accurately show exit travel distance prior to Building permit issuance.

28. Sheet A6.01 to A6.09: Exterior Wall Opening Calculations

a. The site plans shall clearly identify the building types which correspond to the exterior wall opening calculations elevations. The exterior wall opening calculations for each building type provided shall be based on the most restrictive (least FSD) buildings shown on site plans and shall clearly identify which building no. on the building elevations where the calculation are provided corresponding to the FSD for that building.
b. The exterior elevations shall specify the story height and length of the wall segments and opening dimensions for calculations of the wall and opening area.

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c. Applicant to verify the FSD specified on the calculations match the plans, e.g. Sheet A6.05 Right Elevation indicates Level 2 and 3 with FSD 15’-20’, while Level 1 and 4 has FSD 10’-15’

29. Minimum 25% of guest parking spaces to be provided with Level 2 EV chargers per 2025 CalGreen Sec.

4.106.4.2.2(2).

Fire Department

30. The plans approved by the Planning Department process are not building plans and have not been reviewed nor approved for conformance to the California Building Code (CBC), California Fire Code (CFC) and the Milpitas Municipal Code (MMC). Do not consider this set of plans as final building plans approved by the Fire Department. Building plans must be submitted for review and approval before construction is to commence.

The following notes are a general list of the applicable code requirements (2022) and are provided to assist with the building permit process. Please note that these are not all inclusive. All applicable Building, Fire and Municipal Code requirements must be met in advance of any building permit approvals or related construction.

The notes listed below will apply to ALL building and site, unless specifically identify for one particular building or area. (F)

31. Technical Assistance: To determine the acceptability of technologies, processes, products, facilities, materials, and uses attending the design, operation or use of a building or premises subject to inspection by the Fire Code Official, the Fire Code Official is authorized to require the owner or agent to provide, without charge to the jurisdiction, a technical opinion(s), plan review(s) and/or report(s). CFC Section 104.8.2

32. Electronic Documents. The fire code official may require electronic base documents for all construction documents and operational permits. The fire code official shall designate the software base format for the electronic documents. CFC Section 106.1.1, added by MMC Section V-300-2.28

33. Fire Department Access. Fire Department apparatus and staff access shall be provided to all buildings and site. Detailed review will be done during construction permit process. The plans submitted appear to be in general conformance with the requirements. Final design shall meet the requirements listed below. CFC Section 503:
a. Minimum Number of Fire Apparatus Access Points: A minimum of two independent and approved (approved by the Fire Code Official) means of fire apparatus access shall be provided for the site.

Buildings or facilities exceeding 30 feet (9144mm), or three stories in height, or 50,000 square feet (5,760 meters squared) shall be provided with at least two means of fire apparatus access for each structure. CFC, Section D104.1, adopted and amended by MMC V-300-2.170 b. Fire Apparatus Clearance: Fire apparatus access roads shall provide a minimum clear width of 26 feet.

This requirement is for the use and function of a fire ladder apparatus. CFC, Appendix D, Sections D103.1 and D105.2, adopted and amended by Milpitas Municipal Code. MMC V-300-2.169 and 2.172 c. Fire Apparatus Proximity to the Building: One or more of the required access routes meeting this condition shall be located not less than 15 feet and not greater than 30 feet from the building and shall be positioned parallel to one entire side of the building. The side of the building on which the aerial apparatus access road is positioned shall be approved by the fire code official.

Allowed 30 feet between buildings on the upper floors and minimum 35 feet at the first floor as demonstrated in the plans that an aerial apparatus can maneuver in the space.

Street A and G being the aerial apparatus fire access road for the three-story buildings with access to the gable roofs that exceeds the 30 feet height, is acceptable being 26 feet wide. The proximity to the building is not fully compliant as the side of Street A are less than the minimum 15 feet (Buildings 12, 13, 14, 15, 16 & 17). While Street G side of the 3-story buildings are more than the maximum 30 feet (Buildings 12 & 15).

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The Developer’s current design does not fully comply and needs correction on building permit process
d. Fire Apparatus Access Road(s) Required: For multi-family residential projects having more than 50 dwelling units shall be equipped throughout with two separate and approved fire apparatus access roads.

Section D106.1 of the CFC, adopted and amended by MMC V-300-2.173 e. Timing of Installation and Serviceability of Fire Protection Elements: When fire apparatus access roads or a water supply for fire protection is required to be installed, such protection shall be installed and made serviceable prior to and during the time of construction. Combustible construction shall not begin until water mains and hydrants are operational and fire apparatus access roads are installed (paved).

CFC Section 501.4
f. Fire Apparatus Access: Fire apparatus access shall extend to within 150 feet of all portions of exterior walls of the building/structure per the California Fire Code Section 503.1.1. When there is a dead-end condition, means for fire apparatus turn-around shall be provided. g. Turning Radius: Fire apparatus access roads shall meet the Milpitas Fire Department turning radii guidelines and shall provide continuous apparatus travel. Turning radii for fire apparatus access roads shall be a minimum net clearance of 48 feet 6 inches for the outside radius and 28 feet 0 inches for the inside radius. The layout for the outside and the inside radius shall be from the same reference point (center). CFC Section 503.2.4
h. Adjacent Access Rights: No source of access from lands adjoining a property to be developed shall be considered fire apparatus access roads, unless there is obtained the irrevocable and unobstructed rights and recorded as an ingress/egress access easement with the Country of Santa Clara. CFC Section 503.7, added by MMC V-300-2.51
i. Fire Access Road Materials and Load Bearing Requirements: Fire access roads shall be paved (concrete and/or asphalt cement, or other concrete type pavement approved by the Fire Dept.). Fire apparatus access roads/lanes and emergency vehicle roads shall be designed and maintained to support the imposed loads of fire apparatus and shall be surfaced so as to provide all-weather capabilities. CFC Section 503.2.3
Facilities, buildings or portions of buildings hereafter constructed shall be accessible to fire department apparatus by way of an approved fire apparatus access road with an asphalt, concrete or other approved driving surface capable of supporting the imposed load of fire apparatus weighing up to 75,000 pounds j. Emergency Vehicle Access (EVA): EVA roads, when required, shall meet the fire department site access requirements. CFC Section 503
Entry to EVA shall be gates (swing type) for easy access. k. Obstruction of Fire Access: Fire apparatus access roads shall not be obstructed in any manner, including the parking of vehicles. The minimum widths and clearances established in Sections 500.2.1 and 503.2.2 shall be maintained at all times. Ground structures (including landscape) and building projections shall not encroach or impede the fire apparatus access requirements. CFC Section 503.4 l. Marking of Fire Access Roads. The required access road shall be designated and clearly marked as a fire lane. The designated fire lane shall be identified as set forth in Section 22500.1 of the Vehicle Code.

The designation shall be indicated (1) by a sign posted immediately adjacent to, and visible from, the designated place clearly stating in letters not less than one inch in height that the place is a fire lane, (2) by outlining or painting the place in red and, in contrasting color, marking the place with the words "FIRE LANE", which are clearly visible from a vehicle, or (3) by a red curb or red paint on the edge of the roadway upon which is clearly marked the words "FIRE LANE". CFC Section 503.3. Minimum marking shall be pole signage and red curb with “FIRE LANE” stencil. Signage and red curbs shall be done throughout and as needed to clearly identify the no parking zones. m. Site Design Changes: The Fire Department reserves the right to request site design changes as needed to meet the requirements of the CFC, and/or make the request for additional fire protection measures in

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conformance with the CFC.

34. Fire Protection Water Supply (Hydrants, On-site and/or Public): An approved water supply (hydrants on-site and/or public) capable of supplying the required fire flow for fire protection shall be provided upon which facilities, buildings, or portions of buildings are hereafter constructed or moved into or within the jurisdiction. Water supply shall meet the Fire Code and the City of Milpitas Engineering Division water supply guidelines and the CFC Section 507, Appendix B and Appendix C, Milpitas Fire Code amendment.

Note, the Civil drawings submitted under this Planning review are not approved for construction.

The note below applies only to the townhome condo development.

Per City direction, all onsite water systems will be public – no “main” backflow and fire sprinkler laterals are needed. The location of the FDC/PIV for reach building has been shown on Sheet C8.2

35. Water System Calculations: Private fire service mains and appurtenances shall be designed and installed in accordance with the City of Milpitas Engineering design guideline requirements and NFPA 24. Design calculations and all the necessary design information for the water system to meet the domestic and fire flow requirements as per the City of Milpitas Engineer Division water design requirements shall be provided as part of the construction permit process. CFC Section 507 a. B105.2 Buildings other than one- and two-family dwellings, Group R-3 and R-4 buildings and townhouses. The minimum fire-flow and flow duration for buildings other than one- and two-family dwellings, Group R-3 and R-4 buildings and townhouses shall be as specified in Tables B105.1(2) and B105.2.

Exceptions: [SFM] Group B, S-2 and U occupancies having a floor area not exceeding 1,000 square feet, primarily constructed of noncombustible exterior walls with wood or steel roof framing, having a Class A roof assembly, with uses limited to the following or similar uses:

1. California State Parks buildings of an accessory nature (restrooms)

2. Safety roadside rest areas (SSRA), public restrooms

3. Truck inspection facilities (TIF), CHP office space and vehicle inspection bays

4. Sand/salt storage buildings, storage of sand and salt The maximum fire flow reduction for all commercial buildings greater than 30,000 square feet and residential podium buildings shall not exceed 25 percent of the fire flow specified in Table B105.1(2).

The maximum fire flow reduction for all other buildings shall not exceed 50 percent of the fire flow specified in Table B105.1(2).
b. Fire Hydrant Location: The location and quantity of hydrants will be evaluated during the construction permit process. CFC Section 507.5
Hydrants shown on sheets TM-10 are not adequate and additional hydrants will be required based on the total building area and the type of construction.
c. Hydrant for Automatic Fire Sprinkler/Standpipe Systems: Buildings equipped with an automatic fire sprinkler system and/or a standpipe system installed in accordance with Section 903 and or 905 shall have a fire hydrant within 50 feet of the fire department connections. CFC Section 507.5.1.1, amended by MMC Section V-300-2.56
Additional hydrants will be required as buildings 2, 4, 5, 12, 15 and 16 distance to hydrant exceeds the minimum 50 feet requirement shown on Sheet TM-10. d. Private Hydrant Requirements: Private hydrants shall have the bottom 6 inches of the hydrant painted, with a weather resistive paint, white in color. CFC Section 507.5.7, added by MMC V-300-2.57 e. No Parking in Front of Hydrants: No parking is permitted in front of fire hydrants. Hydrants located on streets (Public or Private Street) shall have an unobstructed clearance of not less than 30 feet per CA Vehicle Code 22514

36. Automatic Fire Sprinkler System for Structures:

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a. Automatic Fire Sprinkler. The buildings shall be provided with an automatic fire sprinkler system in conformance with the NFPA 13 Standards. California Fire Code Section 903. b. Sprinkler Valves: All valves controlling the water supply for the automatic sprinkler system shall be electrically supervised by a listed fire alarm control unit. CFC 903.4 c. Sprinkler Monitoring: Alarm, supervisory and trouble signals shall be distinctly different and shall be automatically transmitted to an approved supervising station. CFC Section 903.4.1 d. Fire Riser Location. The fire sprinkler system riser shall not be located within electrical rooms or storage closets and shall be provided with clear access and working clearance. California Fire Code Section 903.3.5.3, added by MMC Section V-300-2.73
e. Sprinkler Design. Hydraulic design for the automatic fire sprinkler system shall provide a minimum of 20% safety margin. CFC Section 903.3.5.6, MMC V-300-2.76 f. Requirements for Fire Service Water Laterals for Building Sprinkler Systems: Each building shall have a fire service water laterals for the automatic fire sprinkler system and shall meet the California Fire Code requirements Chapter 9 and the NFPA applicable Standards. Note that the civil drawings provided are not reviewed nor approved for construction. CFC Section 912.1 g. FDC/PIV (fire department connection/post indicating valve) Location(s). The location of the fire department FDCs/PIVs shall be at a readily visible and accessible location off the fire access road and approved by the Fire Code Official. FDCs/PIVs shall not be located behind parking stalls, trees, landscape structures, nor behind any other obstruction. Final review for location for the FDC’s/PIV’s will be conducted during the construction permit process. CFC Section 912.2 All FDCs and PIVs shall have fire department approved locking connection caps/locks. Knox key caps shall be provided. CFC Section 912.4.1
h. FDC/PIV Signage. A metal sign with raised letters at least 1 inch in size shall be mounted on all fire department connections. Signage shall be reflective, weather resistive and approved by the Fire Code Official. CFC Section 912.5
i. Backflow Protection. Potable water supply to the automatic sprinkler and/or the standpipe systems shall be protected against backflow as required by the Health and Safety Code section 13114.7 and the City of Milpitas Utilities Engineering Division. CFC Section 912.6 j. Water Drainage. All new installations of sprinkler systems shall preclude sprinkler test and system drain water from discharging into the storm drain; provisions to direct water to the sanitary sewer or landscape or other approved means shall be provided. Sprinkler system design shall include the proposed method for drainage of sprinkler system discharge. Storm Water Pollution Regulations

37. Fire Alarm System:
a. R-2 Occupancy: Fire alarm system and smoke alarm shall be installed in Group R-2 occupancies as required in Sections 907.2.9.1 and 907.2.9.2. CFC Section 907.2.9 b. Manual Fire Alarm System: A manual fire alarm system that activated the occupant notification system in accordance with Section 907.5 shall be installed in Group R-2 occupancies. CFC 907.2.9.1 c. Smoke Alarm, R-2 Occupancy: Listed single and multiple-station smoke alarms complying with UL217 shall be installed in accordance with Sections 907.2.11.1 through 907.2.11.7 and the NFPA 72. CFC Section 907.2.11
d. Fire Safety Functions: Automatic fire detectors utilized for the purpose of performing fire safety functions shall be connected to the building’s fire alarm control unit where a fire alarm system is installed. CFC Section 907.3
e. Visual Alarm, R-2 Occupancy: In Group R-2 occupancies required by Section 907 to have a fire alarm system, all dwelling units and sleeping units shall be provide with the capability to support visible alarm

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notification appliances in accordance with NFPA 72. Such capability shall accommodate wired or wireless equipment. See the Code section for options. CFC 907.5.2.3.3 f. Fire Alarm Zones: Fire alarm system(s) shall be zoned as per the requirements of the CFC Sections 907.6.4
g. Fire Alarm Panel: Fire alarm panel (or fire alarm annunciator panel) shall be located in a readily accessible location and shall be provided with the necessary access and working clearance as required by the CA Electrical Code. CFC Section 907.6.4.1.1
h. Fire Alarm Monitoring: Fire alarm monitoring (approved supervising station - UL, or FM approved).

Fire alarm systems required by the Fire Code or by the California Building Code shall be monitored by an approved supervising station in accordance with the NFPA 72. CFC Section 907.6.6

38. Building/Structure Other Requirements:
a. Roof stairs. When there are roof planes with vertical difference of more than 24” there shall be stairs or ship ladders (60 degrees max., approved by the fire dept.) for access between the different roof planes.

The Fire Code Official shall determine the location for the stairs. CFC Section 102.9 b. Buildings with Courtyards. Fire access shall be provided to enclosed courts for firefighting and rescue operations. Each court shall be designed to provide readily accessible method of bringing a fire department ground ladder (36’ long) into the courtyard. Please anticipate and accommodate personnel carrying the ladder. CFC Section 102.9
Planning and architectural features may need to be relocated at the terrace access points between buildings.
c. Premises Identification: New and existing buildings shall have approved address numbers, building numbers or approved building identification placed in a position that is plainly legible and visible from the street or road fronting the property. These numbers shall contrast with their background. Address numbers shall be Arabic numerals or alphabet letters and shall be consistent with Milpitas standardized addressing guidelines. CFC Section 505. The Fire Dept. may require the installation of address numbers at multiple building locations. CFC Section 102.9 Master building address shall also be provided with the units on fronting the main street and visible from all direction of the fire access roads.
d. Solar Electrical Panels. Solar photovoltaic systems shall meet and comply with the CFC Section 1205 requirements.
e. Address Illumination: All required addresses shall be illuminated. CFC Section 505.3, added by MMC V-300-2.55
f. Fire Department Emergency Key Box (aka: Knox Box, Knox Locks, Knox Electric Switches, etc.): The Fire Code Official is authorized to require a key box(es) to be installed in an approved location(s) if necessary for lifesaving or fire-fighting purposes. Quantity and location shall be as directed by the Fire Code Official. CFC Section 506. Locked mechanical closets, fire alarm closets, sprinkler riser closets, etc. will need a Fire Dept. approved lock or “Knox” key box Knox box location shall be by the FACU closet.
g. Access Control Devices. When access control devices including bars, grates, gates, electric or magnetic locks or similar devices, which would inhibit rapid fire department emergency access to the building, are installed, such devices shall be approved by the fire code official. All access control devices shall be provided with an approved means for deactivation or unlocking by the fire department. Access control devices shall also comply with Chapter 10 Egress. CFC Section 504.6, added to the CFC by MMC Section V-300-2.54
Means to deactivate the locking system shall be located in the fire command room or other location as directed by the fire department.

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In addition, all door lock control systems shall meet the requirements of the CFC Sections 1010.2.10, 1010.2.11 and 1010.2.12.
h. Fire Equipment ID signs. Fire protection equipment shall be identified in an approved manner. Rooms containing controls for air-conditioning, systems, sprinkler risers and valves, or other fire detection, suppression or control elements hall be identified for the use of the fire department. CA Fire Code Section 509
i. Portable Fire Extinguishers. Portable fire extinguishers shall be selected, installed and maintained in accordance with CFC Section 906
j. Fire Protection Service (CFC Section 901.6) All fire alarm systems, fire detection systems, automatic sprinkler or extinguishing systems, communication systems, and all other equipment, material or systems required by these regulations shall be maintained in an operable condition at all times in accordance with this code and California Code of Regulations, Title 19, Division 1. Upon disruption or diminishment of the fire protective qualities of such equipment, material or systems, immediate action shall be instituted to effect a reestablishment of such equipment, material or systems to their original normal and operational condition. California Code of Regulations, Title 19, Division 1, §1.14

39. Fire Safety: Fire safety during construction, alteration or demolition of the building shall meet the requirements of Chapter 33 of the California Fire Code and the Standards for Construction Site Fire Safety (un-024) by “unidocs” organization (http//:www.unidocs.org). A Construction Site Fire Safety plan shall be submitted to the Milpitas Fire Prevention Division for review and approval prior to the start of combustible construction. CFC Chapter 33

40. Landscape sheets: Proposed landscaping may be impacted by the comments above and the requirements for fire access, fire systems and devices (such as apparatus access, hydrants, fire service lines, fire department connections valves, etc.). The Fire Dept. reserves the right to relocate, delete or change the proposed landscaping when in conflict with fire systems and devices. CFC 507.5.4

41. Plan Submittal: Complete plans and specifications for all aspects of fire protection systems shall be submitted to the Fire Department for review and approval prior to system installation. CFC Section 901.2

Building Department

42. Compliance with Building Code of Regulations. The Project shall comply with the requirements of the Building Safety and Housing Department and the California Code of Regulations Title 24 and the Milpitas Municipal Code as adopted by the City. Building permits shall be submitted to and approved by the Building Safety and Housing Department prior to start of construction. All California Code of Regulations Title 24 and Milpitas Municipal Code requirements applicable at the time of building permit application must be met in advance of any building permit approvals or related construction. Changes to the site plan and/or building plan require review and approval by the Building Safety and Housing Department. (B)

43. Sheet A3.01 and A4.01: Exit travel distance
a. Sheet A4.01: Plan 1 (4-story): The max exit travel distance shall be measured along the wall line and not at a diagonal path, which will exceed 125’.
b. Sheet A4.01: Plan 2 (4-story): Based on the revised plan layout, the most remote point on Level 4 shall be measured from the lower right corner of the balcony.
c. Sheet A4.01: Plan 3 (4-story): The max exit travel distance shall be measured along the wall line and not at a diagonal path, which will exceed 125’
d. Sheet A4.01: Plan 4 (4-story): Based on the revised plan layout, the most remote point on Level 4 shall be measured from the lower right corner of the balcony. Note the max. travel distance will exceed 125’

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44. Sheet A6.01 to A6.09: Exterior wall opening calculations a. The site plans shall clearly identify the building types which correspond to the exterior wall opening calculations elevations. The exterior wall opening calculations for each building type provided shall be based on the most restrictive (least FSD) buildings shown on site plans and shall clearly identify which building no. on the building elevations where the calculation are provided corresponding to the FSD for that building.
b. The exterior elevations shall specify the story height and length of the wall segments and opening dimensions for calculations of the wall and opening area. Note that the story height at the top story shall be measured to the top of the ceiling joists. The wall area calculations for the top story seem to be including the area above the ceiling joist.
c. Verify the FSD specified on the calculations match the plans, e.g. Sheet A6.05 Right Elevation indicates Level 2 and 3 with FSD 15’-20’, while Level 1 and 4 has FSD 10’-15’. However, the building plans show Level 2 and 3 project beyond Level 1 and 4. Check all calculations and correct as required.

Engineering Department

PRIOR TO CONSTRUCTION PLAN SUBMITTALS
The following conditions shall be met prior to any detailed construction plan check submittals (Building or Engineering, except demolition and rough grade plans), unless otherwise approved by the Director of Engineering/City Engineer. City reserves the right to reject any plan check submittal if any of the following conditions are not met. (E)

45. Modifications: The Site Development Plan dated April 15, 2026 is subject to change during the plan check stage based upon City’s previous comments and conditions stated herein.

46. Solid Waste and Recycling Handling Plan: Permittee shall submit final Solid Waste and Recycling Handling Plan based upon City’s previous comments for City’s review and approval by the Solid Waste Program. The Plan shall show calculations of waste generation volumes and how materials will be transferred from the waste generation areas to the trash enclosure/external collection point; demonstrate how recycling, food waste, and yard trimmings shall have a separately maintained process from garbage handling; address other requirements such as waste generation and compactor sizing, chute shut-off and property management responsibility for bin management and litter control; outreach and education to tenants/occupants, and procure sufficient service frequency based upon waste generation calculation volumes.

47. Stormwater Control Plan: Permittee shall submit City approved final Stormwater Control Plan (SWCP) that complies with the latest Municipal Regional Stormwater NPDES Permit, including Low Impact Development (LID) Section C3.c.i.(2)(b) measures for harvesting and reuse, infiltration, or evapo-transpiration, for City’s review and approval by the Engineering Department.

48. Photometric Analysis: Permittee shall submit streetlight photometric analysis for City’s review and approval by the Engineering Department along Great Mall Parkway, McCandless Drive, and Centre Pointe Drive that meet the Illuminating Engineering Society of North America (IESNA), RP8, for roadway and sidewalk lighting standards and City standard design guidelines.

49. Recycle Water Cross-Connection Specialist: In order to comply with the California Code of Regulations Title 17 and 22, and for timely plan approval by the California State Water Resources Control Board/Division of Drinking Water as well as by the South Bay Water Recycling, Permittee must hire a certified cross-connection specialist for their consultation as to irrigation water system design and construction phasing. The name and contact information of the certified cross-connection specialist shall be provided on all landscape submittal plans.

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50. Submittal Requirements: Permittee to ensure that all plan check submittals are in accordance with City’s submittal check list for each permit type, including but not limited to, payment of permit fees and/or fee deposit at the time of the submittal.

51. Project Job Account/Fee Deposit: Permittee shall open a new PJ account as a deposit to cover the costs for Engineering Department’s services for review and inspection of the project. The amount shall be determined based on the approved City fee schedule at the time of application submittal.

52. Coordination with other Projects: Permittee shall coordinate designs with Summerhill Apartments Phase 2 and the proposed VTA Great Mall TOD Project in advance prior to any plan submittal.

PRIOR TO FINAL MAP APPROVAL/ RECORDATION
The following conditions shall be addressed as part of the off-site improvement plan review and shall be met prior to any final approval/recordation (except demolition permit and rough grade permit), unless otherwise approved by the Director of Engineering/City Engineer. (E)

53. Dedication on the Final Map: Permittee shall dedicate necessary emergency vehicle access easements, public service utility easements, street easements, public access easement and other public easements deemed necessary for the project.

54. Abandonment/Quitclaim Easements: Permittee shall abandon/quit claim existing easements that are in conflict with or unnecessary for the project.

55. Easements on the Final Map: Permittee shall depict all existing easements to remain based upon current preliminary title report and depict new easements on the final map.

56. Concurrent Off-site Plan Reviews: Permittee shall submit separate off-site improvement plans for City’s review and approval by the Engineering Department.

57. Street Name Approval: Permittee shall obtain approval from the City Council for all new street names based upon recommendation from the Planning Commission and City guidelines.

58. Utility Company Approval: Permittee shall obtain approval letters from utility companies (PG&E, AT&T, Comcast) for abandonment of existing and dedication of new public service utilities easements.

59. Covenant, Conditions & Restrictions (CC&Rs): Permittee shall provide CC&Rs for City’s review and approval for perpetual maintenance of private roadways, private utilities, stormwater management facilities in accordance with a separately recorded Stormwater Management Facilities Operation and Maintenance Agreement, etc. There shall be provisions in the CC&Rs to retain a recycled water site supervisor with annual re-certification report to the City’s Public Works Department.

60. Subdivision Improvement Agreement and Securities: Permittee shall execute a Subdivision Improvement Agreement and provide improvement securities in accordance with MMC Title XI, Section 17, and submit all other supplemental documents as stipulated in the Improvement Agreement (such as certificate of insurance).

61. Annexation to the Community Facilities District: Permittee shall submit an executed petition affirmatively consenting to annex the subject property to the Community Facilities District (CFD) 2008-1, and agree to pay the special taxes levied by the CFD 2008-1 for the purpose of maintaining the public services. The CFD annexation process shall be completed prior to final map approval. Permittee shall comply with all rules, regulations, policies and practices established by the State Law and/or by the City with respect to the CFD including, without limitation, requirements for notice and disclosure to future owners and/or residents. This condition of approval is nonseverable from the Permit and invalidation or limitation of this condition invalidates the Permit, condition 14 notwithstanding.

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PRIOR TO OFF-SITE PLAN APPROVAL/ENCROACHMENT PERMIT ISSUANCE The following conditions shall be addressed during the building plan check process and shall be met prior to encroachment permit issuance, unless otherwise approved by the Director of Engineering/ City Engineer. (E)

62. Public Improvement Design Standards: All public improvements shall be designed and constructed in accordance with all applicable public improvement design standards, including but not limited to:
a. Milpitas Design Guidelines: https://www.milpitas.gov/317/Land-Development-Procedures-Guidelines b. Standard details and specifications: https://www.milpitas.gov/333/Standard-Details-Specifications c. Milpitas Metro (Transit Area) Specific plan design guidelines:
(http://www.ci.milpitas.ca.gov/_pdfs/engDesignGuidelines/en_dg_vi_transitAreaSpecific.pdf; and d. Americans with Disabilities Act (ADA) requirements, where applicable.

63. Sanitary Sewer Calculations: Permittee shall submit a completed “Sewer Needs Questionnaire” form and sanitary sewer calculations to justify lateral size design, allocation of discharge for each of the lateral, and impact to the existing main. Permittee shall be responsible to implement any necessary improvements if there is any identified deficiency to the existing main as a result of the project.

64. Storm Drain Design: Permittee shall submit storm drain hydrology and hydraulic calculations based upon a 10- year storm event to justify the size of the storm drain lateral flowing full, without surcharging the main line pipe, and to be reviewed and approved by the Engineering Department.

65. Domestic Water and Fire Service Calculations: Permittee shall submit potable water and fire service calculations to confirm adequacy of lateral size, pressure and flow, to be reviewed and approved by the Engineering Department and Fire Department. Hydraulic modeling analysis by the City and paid by the Permittee may be required as needed. Permittee shall be responsible to implement any necessary improvements if there is any identified deficiency to the existing main as a result of the project.

66. Specific Improvements: In addition to standard public improvements required under Milpitas Municipal Code (MMC) Title XI, Chapter 1, Section 7, Permittee shall install other specific improvements listed below including incidental improvements as required by the City as part of the encroachment permit.

a. Installation of public (City-maintained) water and sewer mains within on-site private streets and public easements. Please ensure all horizontal and vertical separations meet the CCR title 22 requirements. b. Installation of separate water service laterals (domestic water, fire service) for each residential building. c. Installation of separate sewer service laterals for each residential building at minimum. d. Installation of separate recycled water irrigation water service laterals for the onsite and offsite irrigation systems.
e. Installation of reduced-pressure backflow prevention assemblies for each water service commensurate to the hazard level of the project site.
f. Installation of storm drain utility service laterals connecting the community’s private storm drain system to the City’s storm drain mains.
g. Installation of radio-transmitted water meters with a meter antenna, any repeaters or transmitters as needed with dedicated power supplies at no cost to the City at locations acceptable to the City to ensure accurate and timely reception of meter readings. Permittee shall execute a recorded instrument providing dedicated space, access rights and dedicated power supplies to the City for operation/ maintenance/ repair/ replacement of subject radio antenna.
h. Installation of new public sidewalk and planted strip along the project street frontage on Great Mall Parkway. The sidewalk and planted strip designs shall comply with the Milpitas Metro Specific Plan design guidelines and other applicable City standards and details. i. Repair/refurbishment of existing public sidewalk and installation of other sidewalk-area improvements, including any required street trees and street tree wells, along the project street frontage on McCandless Drive and Centre Point Drive. The repaired/refurbished sidewalk and other sidewalk area improvements

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shall comply with the Milpitas Metro Specific Plan design guidelines and other applicable City standards and details.
j. Install street lights and pedestrian scale lights along Centre Pointe Drive, Great Mall Parkway and McCandless Drive project frontages per TASP guidelines and standards. The developer shall procure an extra street light pole and deliver it to the Public Works Corporation Yard for storage. k. Installation of new stormwater treatment facilities in available vegetated public right-of-way area(s) along the project frontage for the treatment of runoff for an equivalent area of offsite public improvements. The design of these stormwater treatment facilities shall comply with the Santa Clara Valley Urban Runoff Pollution Prevention Program’s Provision C.3 design standards. l. Restoration of damaged and substandard pavement to the limits and methods determined by the City per the findings of the pavement condition surveys the Permittee is to conduct prior to and following construction.
m. Installation of offsite vehicular and pedestrian traffic improvements the City deems necessary per the findings of the Traffic Impact Assessment (TIA) report the Permittee is to submit to the City. Those improvements may include, but are not limited to: Left turn pocket lane from SB McCandless Drive to EB Market Street, pedestrian crosswalk flashing beacons (RRFB) at the McCandless Drive/Market Street intersection, and other signage and striping improvements. n. Permittee shall work with City staff and PG&E to locate transformer pads behind public sidewalk and provide proper screening along Great Mall Parkway project frontage. o. The City will be rehabilitating the existing asphalt concrete (AC) pavement along a segment of Great Mall Parkway that includes the portion fronting the project site (which currently has a failing Pavement Condition Index (PCI) of 30) under its Street Resurfacing 2026 program. As the City’s public improvement design standards would have otherwise required the Permittee to complete this pavement rehabilitation work as part of this project’s scope of offsite improvements, and the City will instead be completing it, Permittee, in lieu of the required work, shall instead perform AC pavement restoration at an alternate public street location of equivalent area and similar pavement condition (PCI ≈ 30), as designated by the City at a later date.

67. Abandonment of Existing City Utilities: Permittee shall cap, abandon or remove any unused existing public utilities based upon City’s Abandonment Notes and to the City’s satisfaction.

68. Relocation and Adjustment of Existing Public Utilities: Permittee shall relocate and/or adjust existing public utilities as needed that are in conflict with the proposed improvements.

69. Water Service Agreement: Permittee shall complete a water service agreement to obtain water service.

70. Encroachment Permit: Prior to any work in the public right-of-way and/or public easement, obtain an encroachment permit with insurance requirements for all public improvements including a traffic control plan per the latest California Manual on Uniform Traffic Control Devices (MUTCD) standards to be reviewed and approved by the Engineering Department.

71. Pothole Encroachment Permit: Due to multiple new utility service connections on collector streets, Permittee shall pothole and verify all potential utility crossing conflict as part of the public improvement plan during the design stage.

72. Traffic Impact Assessment: Permittee shall submit a Traffic Impact Assessment (TIA) report to the City for review and approval prior to finalizing the offsite improvement plan as per the adopted Transportation Analysis Study (date May 8, 2021). The scope of the TIA study shall be reviewed and approved by the City.

PRIOR TO BUILDING PERMIT ISSUANCE
The following conditions shall be addressed during the building plan check process and shall be met prior to any building permit issuance (except demolition permit and rough grade permit), unless otherwise approved by the Director of Engineering/City Engineer. (E)

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73. Final Map Recordation: Permittee shall record the final map.

74. Easements on the Building Permit Plans: Permittee shall depict all existing easements to remain based upon current preliminary title report and depict new easements on applicable building permit plans.

75. Stormwater Facility Operation & Maintenance Plan: Permittee shall incorporate design details into applicable construction plans in accordance with City approved Storm Water Control Plan (SWCP). Permittee shall also submit Stormwater Facility Operation & Maintenance Plan that describes operation and maintenance procedures needed to ensure that treatment Best Management Practices (BMPs) and other storm water control measures continue to work as intended and do not create a nuisance (including vector control).

76. Stormwater Management Facilities O&M Agreement: Permittee shall execute and record a Stormwater Management Facilities Operation and Maintenance (O&M) Agreement associated with the SWCP O&M Plan, including perpetual maintenance of treatment areas/units, as reviewed and accepted by the Engineering Department. The subject O&M Agreement shall be referenced in the CC&Rs, if applicable.

77. Water Supply and Force Majeure: The City reserves the right to suspend the issuance of building permits in case of an emergency declaration of water supply in the case of a major catastrophic event that restricts City’s assurance to provide water supply.

78. Recycle Water Approval: Permittee shall use recycled water for landscape irrigation purpose, except for the interior courtyard/podium areas within the building footprint where the potable water shall be used for irrigation. Permittee shall comply with California Code of Regulations (CCR), Title 22, Division 4, Chapter 3, titled “Water Recycling Criteria”, CCR, Title 17, Division 1, Chapter 5, Subchapter 1 titled “Drinking Water Supply” and all other recycled water regulations as listed under the publication titled “California Department of Public Health Regulations Related to Recycled Water June 18, 2014”. Permittee shall obtain approval from the California State Water Resources Control Board/Division of Drinking Water, South Bay Water Recycling and the City for recycled water design, including but not limited to on-site irrigation design, based upon South Bay Water Recycling Guidelines and City of Milpitas Supplemental Guidelines. All landscape plants shall be compatible with recycled water.

79. Water Efficient Landscapes: Permittee shall comply with Milpitas Municipal Code Title VIII, Chapter 5 Water Efficient Landscapes for landscape design, including but not limited to, providing separate water meters for domestic water service and irrigation service and providing applicable landscape documentation package.

80. Solid Waste and Recycling Facility Design: Permittee shall comply with all applicable City design guidelines/details associated with haul route, turning radius, vertical and horizontal clearance, trash enclosure, staging area, storage area, etc.

81. Recycling Report Prior to Demolition Permit Issuance: Permittee shall submit Part I of a Recycling Report on business letterhead to the Building Department, for forwarding to the Engineering Department for review and approval. The report shall describe the following resource recovery activities.

a. What materials will be salvaged.
b. How materials will be processed during demolition.
c. Intended locations or businesses for reuse or recycling. d. Quantity estimates in tons (both recyclable and for landfill disposal). Estimates for recycling and disposal tonnage amounts by material type shall be included as separate items in all reports to the Building Division before demolition begins.

Permittee shall make every effort to salvage materials for reuse and recycling, and shall comply with the City’s demolition and construction debris recycling ordinance.

82. Recycling Report Prior to Building Permit Issuance: Permittee shall submit Part II of the Recycling Report to the Building Department, for forwarding to the Engineering Department. Part II of the Recycling Report shall

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35 Resolution No. xxxx
be supported by copies of weight tags and/or receipts of “end dumps.” Actual reuse, recycling and disposal tonnage amounts (and estimates for “end dumps”) shall be submitted to the Building Department for approval by the Engineering Department prior to inspection by the Building Department.

83. Flood Plain Management: This project is in the Flood Zone “AO” with 1’ average flood depth, therefore, Permittee shall comply with all applicable flood protection criterion required by the Federal Emergency Management Agency (FEMA) and MMC Title XI, Chapter 15. Permittee shall also submit a Flood Study for the Project demonstrating, to the satisfaction of the City Engineer, that the proposed development has no adverse impact to the surrounding flood plain within the Special Flood Hazard Area (SFHA) and to the flood carrying capacity of the area. The study should include cumulative effects of existing and proposed developments demonstrating the combined effects will not increase the water surface elevation of the Base Flood Elevation (BFE) more than one foot at any point. For the AO Flood Zone, the flood study is required to establish the BFE, and set the building elevation accordingly. The flood study shall be consistent with the requirements in accordance with Title 44 of the Code of Federal Regulations by establishing a hydraulic model and HEC-RAS.

The study shall clearly identify the lowest floor elevation as being either the bottom of garage, bottom of first floor residential units, bottom of elevator pit, etc. and shall be completely elevated out of the SFHA.

84. Development Fees: Permittee shall pay the following development fees. The information listed in items “a” through “g” are based upon current fee rates; however, those fee rates are subject to change. The exact fee amount shall be determined at the time of building permit fee payment.

a. Water connection fee at $1,164/unit for residential, based upon increased water usage. b. Sewer connection fee at $1,406/unit for residential, based upon increased average wastewater flow. c. 3.8% of applicable fees in accordance with City Resolution No. 8969 as Permitting Automation Fee. d. FEMA Floor Zone Designation Letter fee in the amount of $100.00 each.

85. Mailboxes: The Permittee shall coordinate with US Postal Services regarding placement of required mailboxes.

Mailbox location shall not be on public street frontages and shall be approved by City and US Postal Services prior to building permit issuance. Mailbox locations shall be shown on the improvement plans and Permittee shall submit a letter to the City’s Land Development Engineering Section from the Post Master approving the location of the mailbox. Structures to protect mailboxes may require Building, Engineering and Planning Department review.

86. Hazard Assessment Report: For any new back flow device proposed to be installed on an irrigation, domestic or fire service, the Permittee and its qualified cross-connection specialist shall complete and submit a City of Milpitas Hazard Assessment Report (CMP Hazard Assessment Report (Fillable) 2026). An existing Hazard Assessment Report may be submitted if completed in the last six (6) months, or submission of a new assessment if any of the following conditions have occurred: 1) Initial site hazard assessment is older than six (6) months, 2) Account change; 3) New connection; 4) Change in onsite activities or materials that may affect water safety; 5) If there has been cross-connection incident in the last six (6) months or if this work is requirement of the State Water Resource Control Board. The Hazard Assessment Report shall be submitted for review and approval by the City’s Utility Engineering department prior to building permit issuance.

DURING CONSTRUCTION
The following conditions shall be complied with at all times during the construction phase of the project, unless otherwise approved by the Director of Engineering/City Engineer. (E)

87. Dewatering: If dewatering is needed during construction, Permittee shall obtain a Short-Term Industrial Wastewater Permit from the San Jose/Santa Clara Water Pollution Control Plant for discharging the groundwater to a sanitary sewer system.

88. On-site Recycle Water Coordination: Permittee’s cross-connection specialist shall coordinate the phasing of the construction; facilitate the cross-connection testing in order to minimize the impact for occupied buildings during cross-connection testing; sign-off before the water meter set; coordinate on-site construction inspection;

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36 Resolution No. xxxx
complete the site inspection; fill out required paperwork/questionnaire; and provide them to the City for forwarding to South Bay Water Recycling. Developer shall notify SBWR 7 days in advance to schedule attendance of SBWR inspector during Cross-connection Test.

89. Prohibition of Potable Water Usage: Permittee shall use recycled water for construction purposes, including dust control and compaction. Permittee shall comply with MMC VIII-6-5.00 and 6-6.00 where potable water usage is prohibited, unless otherwise approved by the City Council.

90. Construction Staging and Employee Parking: Permittee shall place all construction related materials, equipment, and arrange construction workers parking on-site and not located in the public right-of-ways or public easements.

91. Water Shut-down Plan: Permittee shall provide a water shut-down plan at least seven days in advance of the shut-down in coordination with the Engineering Inspector and notify affected property owners/tenants when cut-in tee(s) is/are required.

92. Pavement Condition Surveys: Permittee shall conduct pavement condition surveys both prior to and following construction along all project frontage streets to determine the appropriate pavement restoration measures and to establish the limits of any required grind and overlay. Pre- and post-construction pavement condition survey reports shall be submitted to the City for review and approval prior to the commencement of any pavement restoration work.

PRIOR TO FIRST OCCUPANCY
The following conditions shall be met prior to first building occupancy on either lot, unless otherwise approved the Director of Engineering/City Engineer.

93. Completion of Public Improvements: Permittee shall complete all public improvements, including but not limited to onsite public utility mains and appurtenances, and frontage improvements along Centre Pointe Drive, Great Mall Parkway, and McCandless Drive, as shown on City approved plans.

94. LOMR-F: Permittee shall submit the FEMA approved LOMR-F for reach unit/building associated with the requested occupancy, if project is located in the SFHA.

95. Elevation Certificate: Permittee’s civil engineer shall submit an Elevation Certificate for the lowest finished floor elevation of each building for City record.

96. Landscape Certificate of Completion: Permittee shall submit a Certificate of Substantial Completion that complies with the Milpitas Municipal Code Water Efficient Landscapes ordinance.

97. Certificate of Cross-Connection: Permittee shall ensure that a certified cross-connection control specialist administer a cross-connection test and complete the required Recycled Water Cross connection Test Form, cross connection test results and any special forms as required by the South Bay Recycling Program https://www.sanjoseca.gov/your-government/departments-offices/environmental-services/water- utilities/recycled-water/retail-customer-information and forward them to the City.

98. Record Drawings: Permittee shall submit record drawings in Full size hard copy, AutoCAD, Tiff, and PDF formats for City records. Record drawings shall include all public improvements. Additionally, if the project uses recycled water, the permittee shall also submit record drawings of on-site irrigation facilities.

99. Private Job (PJ) Balance: Permittee shall pay for any remaining balance from the Private Job deposit.

(P) = Planning
(B) = Building
(E) = Engineering
(F) = Fire Prevention
(CA) = City Attorney

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NOTICE OF RIGHT TO PROTEST
The Conditions of Project Approval set forth herein include certain fees, dedication requirements, reservation requirements, and other exactions. Pursuant to Government Code Section 66020(d)(1), these Conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereby further notified that the 90-day approval period in which you may protest these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a), began on date of adoption of this resolution. If you fail to file a protest within this 90-day period complying with all of the requirements of Section 66020, you will be legally barred from later challenging such exactions.

AGREEMENT
Permittee/Property Owner

The undersigned agrees to each and every condition of approval and acknowledges the NOTICE OF RIGHT TO PROTEST and hereby agrees to use the project property on the terms and conditions set forth in this resolution.

Dated: _________________ ______________________________________ Signature of Permittee

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AGENDA IX-1

MILPITAS PLANNING COMMISSION

STAFF REPORT

May 6, 2026

APPLICATION: DISTRICT LOT 3A AMENDMENT – 1320 McCANDLESS DRIVE – SITE DEVELOPMENT AMENDMENT (P-SA25-
0002), VESTING TENTATIVE MAP (P-TM26-0001),
CONDITIONAL USE PERMIT AMENDMENT (P-UA25-
0003), DENSITY BONUS PERMIT (P-DB26-0001), and
DEVELOPMENT AGREEMENT (DA26-0001): A request for
a major modification to Site Development No. P-SA20-0004 for the development of 109 townhomes and 10 Accessory Dwelling Units on a vacant 5.49-acre site located in the MXD2-Metro Zoning District at 1320 McCandless Drive. The application also includes a request for a Density Bonus Permit with concessions, Vesting Tentative Map No. P-TM26-0001, and a major modification to Conditional Use Permit No. P-UP15-0010, which allowed for the approved mixed-use development. Furthermore, the Project includes a tentative Development Agreement, including to identify the required minimum density and other applicable standards. The proposed Project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15182 (Projects Pursuant to a Specific Plan).

RECOMMENDATION: Staff recommends that the Planning Commission adopt Resolution No. 26-010, recommending approval of Site
Development Permit Amendment SA25-0002, Vesting Tentative Map (P-TM26-0001), Conditional Use Permit Amendment (P- UA25-0003), Density Bonus Permit (P-DB26-0001), and
Development Agreement (DA26-0001) to the City Council,
subject to the attached Conditions of Approval.

LOCATION:

Address/APN: 1320 McCandless Drive (APN 086-33-112, -113, and -114) Area of City: Southern portion of the City of Milpitas near the Great Mall

PEOPLE:

Project Applicant: Riley Paone, Lyon Living
Project Planner: Randy Baez, Associate Planner

LAND USE:

General Plan Designation: Milpitas Metro Specific Plan (MMSP) Zoning District: Mixed Use (MXD2-Metro)

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Agenda Item IX-1: Site Development Permit Amendment – May 6, 2026 Page 2 of 35

Site Area: 5.49 acres

ENVIRONMENTAL: The proposed Project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15182 (Residential Projects Pursuant to a Specific Plan), and is consistent with the Transit Area Specific Plan (TASP) Environmental Impact Report (FEIR), June 2008 and Milpitas Metro Specific Plan Subsequent EIR (SCH#2006032091), approved by the City Council on February 7, 2023 (Resolution No. 9217).

Map 1 – Project Location

Map 2 - Zoning Map

Project Site
N

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Agenda Item IX-1: Site Development Permit Amendment – May 6, 2026 Page 3 of 35

RECOMMENDATION
Staff recommends that the Planning Commission:

1. Open the Public Hearing to receive comments;

2. Close the Public Hearing;

3. Consider the CEQA determination in accordance with CEQA; and

4. Adopt Resolution No. 26-010, approving Amendment to Site Development Permit No.

SD15-0006, Vesting Tentative Map No. P-TM26-0001, Conditional Use Permit No. UP15- 0010, Density Bonus Permit No. P-DB25-0001, and Development Agreement DA26-0001, subject to the findings and attached Conditions of Approval.

BACKGROUND
History
In 2008, the City Council adopted the Transit Area Specific Plan (TASP). The TASP area encompasses 437 acres and forecasts the development of approximately 7,109 residential dwelling units, 287,075 square feet of retail space, nearly one million square feet of office use and up to 350 hotel rooms. The TASP includes goals, policies, and development standards to guide construction within the area, which includes sub-districts in order to address the area’s unique characteristics.

The McCandless/ Centre Pointe Sub-District is an area identified within the TASP as the best location for a successful retail mixed-use district, building off the established retail destination of the Great Mall and the visibility along Great Mall Parkway.

Project Site

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In 2011 Integral Communities submitted a master-planned mixed-use development within a portion of the McCandless/ Centre Point Sub-District through Site Development Permit No. SD11- 0001, Conditional Use Permit No. UP11-0037, and Tentative Map No. TM11-0002. The development, called The District, includes multiple land areas for retail, commercial, and high- density residential development. Integral Communities eventually sold The District development to Lyon Living. Lyon Living is the current owner of the property and is completing the development of a portion of The District, also referred to as The Fields.

The Fields is comprised of four separate mixed-use areas located near the intersection of Great Mall Parkway and McCandless Drive. The City refers to these areas as The District – Lot 1, Lot 2, Lot 3, and Lot 4, which are also referred to as Turing, Graham, Elion, and Gideon, respectively.

Figure 1 shows these lots below.

Figure 1: The Fields/District Lots 1-4

In November 2015, the City of Milpitas approved multiple entitlements that included a major portion of The Fields, including Site Development Permit No. SD15-0006 and Conditional Use Permit No. UP15-0010 for The District – Lot 3. The approved project included a mixed-use building with 423 residential units, 175 hotel rooms, 59,135 square feet of retail and office space, a 49,240 square-foot rooftop amenity deck, and a maximum building height of 130 feet for both the hotel and mixed-use buildings. The approvals also established the use of density averaging across the project area, allowing flexibility in the distribution of units among the various lots, provided the overall project met the minimum density requirements of the TASP.

The District Lot 1
- Turing
The District Lot 2
- Graham
The District Lot 3
- Elion
The District Lot 4
- Gideon

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In May 2018, June 2019, and March 2020, Lyon Living further modified project areas within The Fields. Through Minor Site Development Permit No. MS18-00442, Lyon Living received approval to decrease residential units and increase retail space for The District – Lot 2. Lyon Living also received approval to increase residential units and decrease retail space for The District – Lot 4 through Site Development Permit Amendment Nos. SA18-0006 and SA19-0006.

In 2021, the Planning Commission approved Site Development Permit Amendment No. SA20- 0004 and an amendment to Conditional Use Permit No. UP15-0010 for The District – Lot 3. That amendment modified the previously approved development density uses, and architecture as follows:

• Decreased the total number of residential dwelling units from 423 to 357; • Decreased the total number of hotel rooms from 175 to 162; • Decreased the amount of retail/office space from 59,135 square feet to 25,179 square feet; • Decreased the size of the rooftop amenity deck from 49,240 square feet to 18,225 square feet;
• Reduced the hotel building’s maximum height from 130 feet 83 feet and the maximum height of the mixed-use building from 130 to 90 feet;
• Eliminated private open space from 71 residential units; • Modified the architectural design and layout of the overall project, including the hotel and mixed-use building;
• Approved exceptions to the TASP retail area standard and private outdoor space standard pursuant to MMC Section XI-10-6.07, via the Conditional Use Permit amendment; and • Approved development of infrastructure along Market Street to support a farmer’s market and community gathering area as a public benefit.

The environmental assessment for SA20-0004 was conducted in accordance with CEQA (memorandum dated January 7, 2021) and found the project consistent with the Addendum to the TASP Final Environmental Impact Report (SCH#2006032091), approved by the Milpitas City Council on November 17, 2015 through Resolution No. 8509. As a separate and independent basis, the project was also found exempt under CEQA Guidelines Section 15183 and Section 15182.

The change to the Metro Plan was intended to be a response to current market conditions, regional housing needs, and the completion of the Milpitas Transit Center with BART and VTA connections. The Metro Plan reorganizes the original six TASP subdistricts into five Metro districts: Great Mall, McCandless, Tango, Piper, and Innovation District. It also expands commercial and employment opportunities, particularly through the new Innovation District focused on technology and research and development. The proposed Project is located within the McCandless District of the Metro Plan, which is characterized by high-density mixed-use development along larger, busier streets and by lower density townhouse development in the central area of The District.

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Agenda Item IX-1: Site Development Permit Amendment – May 6, 2026 Page 6 of 35

The Application
The current application proposes a further amendment to Site Development Permit No. SD15- 0006 and Conditional Use Permit (CUP) No. UP15-0010, as amended by SA20-0004. These changes include the following and are summarized in Table 1:
• Further reduce the total number of residential units from 357 to 109 townhomes and 10 ADUs;
• Eliminates the proposed hotel (previously 162 hotel rooms); • Reduces the amount of retail/office space from 25,179 square feet to approximately 3,324 square feet of live/work space, split between nine units; • Eliminates the rooftop amenity deck (previously 18,225 square feet); • Reduces the proposed building height from 90 feet to no more than 49 feet; and • Proposes 27,832 square feet of public open space in the form of a public urban plaza.

The original CUP (UP15-0010) was requested to deviate from certain Transit Area Specific Plan (TASP) standards as allowed by the TASP Section 5.2 (Zoning Regulations) standards as allowed by the TASP. These deviations included providing tandem parking, increasing the Floor Area Ratio (FAR), and exceptions for certain TASP standards such as setbacks, parking, ground floor retail space depth, and open space. Those same exemptions are not requested nor are they a part of the present application. The applicant is requesting an amendment to the CUP for a condominium subdivision as part of the Vesting Tentative Map per MMC Section XI-1-4.01-5.

Table 1: Summary of Lot 3 Entitlements

Element Originally Approved
(2015)
Amended by SA20-
0004
Proposed
Residential Units 423 apartments 357 apartments 109 townhomes + 10 ADUs
Hotel Rooms 175 162 None
Retail/Office
Space
59,135 square feet 25,179 square feet 3,324 square feet of live/work area (9 units
total)
Rooftop Amenity
Deck
49,240 square feet 18,225 square feet None
Hotel Building
Height
130 feet 83 feet N/A
Mixed-Use or
Residential
Building Height
130 feet 90 feet 36 feet – 49 feet

The current application also requires the following entitlements:
• Vesting Tentative Map: The proposed Project includes the development of the site for for- sale townhome units, which requires a Vesting Tentative Map for the condominium subdivision of the lot per MMC Section XI-1-4.00 (Filing and Approval of Tentative Map). • Density Bonus Permit: A density bonus is required to ensure compliance with State Density Bonus Law and ensure the project is eligible for certain concessions under State Density

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Bonus Law. See MMC Sections XIII-C.12.010 et seq. (Density Bonus for Affordable Housing Developments).
• Development Agreement (DA): A DA is proposed to provide certainty as to what development standards apply to this Project, including to preserve the minimum residential density previously allowed for the subject property under the TASP (30 dwelling units per acre). See MMC Sections XIII-D.14.010 et seq. (Development Agreements).

PROJECT DESCRIPTION
Overview
The Project site is an undeveloped 5.49-acre parcel at the intersection of Great Mall Parkway and McCandless Drive within the McCandless District of the Metro Specific Plan. The property and some neighboring properties are zoned MXD2-Metro Mixed-Use. The Project site is located in the southern portion of the City, across the street from the Great Mall, and within a ½ mile from the Milpitas Transit Center. An aerial map of the subject site location is shown on Map 1.

The live/work units have three different floor plans, all of which open onto the main floor of the unit and have access to ADA compliant bathrooms and an office area. The commercial component of the live/work units range from 336 to 401 square feet in size, for a total commercial floor area of 3,324 square feet. From the Market Street entrance, the live/work units will feature floor to ceiling windows and contemporary signage on the metal façade above each unit.

Although this development does not propose on-site affordable housing, the applicant is providing 18 low-income and 4 very low-income rental apartments units at the adjacent Gideon building directly to the south of the site. These units would be provided within the larger footprint of the Fields project. Public improvements include refinished adjacent streets and new/updated sidewalks throughout the perimeter of the site, in addition to all required utility improvements.

Lastly, the proposed Project includes a 27,832 square-foot publicly accessible urban plaza on the corner of Market Street and McCandless Drive.

Location and Context
The Project site is located near the intersection of Great Mall Parkway and McCandless Drive within the McCandless District of the Metro Plan. Properties adjacent to the Project site are zoned MXD2-Metro to the south and west and MXD3-Metro to the east. Two properties north of the

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Project site are zoned BPRD-R-Metro, while the larger Great Mall property is zoned MXD2- Metro. The following table provides a summary of the Zoning and Land Uses surrounding the site:

Table 2: Surrounding Zoning and Land Uses

General Plan Zoning Existing Use
Subject Site Residential Retail High
Density Mixed Use
(RRMU)
Metro High Density Mixed
Use (MXD2-Metro)
Vacant
North Business Park/Research
& Development (BPRD-
R)
Metro Business Park
Research and
Development, Limited
Residential (BPRD-R-
Metro)
Drive-Through
Restaurant and Gas
Station
South Residential Retail High
Density Mixed Use
(RRMU)
Metro High Density Mixed
Use (MXD2-Metro)
Gideon Mixed-Use
Building
East BLVD Very High
Density Mixed Use
(BVMU)
Metro Very High Density
Mixed Use (MXD3-Metro)
Vacant
West Residential Retail High
Density Mixed Use
(RRMU)
Metro High Density Mixed
Use (MXD2-Metro)
Turing Mixed-Use
Building

PROJECT ANALYSIS
General Plan and Zoning Conformance
Milpitas General Plan 2040
The General Plan designation for the Project site is Milpitas Metro Specific Plan (MMSP). The Milpitas Metro Specific Plan (Metro Plan) classifies the Project site as Residential Retail High Density Mixed Use (RRMU) and details the goals, objectives and policies for the RRMU land use classification. The RRMU designation supports vertically mixed-use development that have ground floor retail and active uses with residential or office uses on upper floors. As a whole, the mixed-use designations of the Metro plan are intended to cluster pedestrian-oriented retail and personal services in proximity to high-density residential populations, as well as making them convenient to employment areas. The Project can be found in conformance with the policies and standards in the City’s General Plan policies, as outlined in the following table:

Table 3: General Plan Consistency
Policy Conformance
LU 1-4 Continue to provide for a
variety of housing types and
densities that meet the needs of
individuals and families and offer
residents of all income levels, age
Consistent. The Project provides 109 new multi-family
townhome residences and 10 Accessory Dwelling Units
(ADUs) on a currently vacant 5.49-acre parcel within the McCandless District of the Metro Specific Plan area. This variety of housing types — townhomes with attached two-

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groups, and special needs sufficient
housing opportunities and choices
for locating in Milpitas.
car garages and ADUs — will meet the needs of
individuals, families, and residents of all demographics and income levels. The townhome product type offers a
family-sized housing option that is distinct from the
higher-density stacked-flat apartment developments that predominate in the Metro Plan area, thereby diversifying the housing stock and providing additional choices for
residents who may need more space for family,
professional, or personal needs. Additionally, nine of the townhome units along Market Street will include
live/work units, further expanding the variety of housing options available to residents who may wish to operate a home-based business.

LU 2-1 Utilize Specific Plans to
guide development within
Milpitas’s special planning areas.

Properties located within Specific
Plan areas shall conform to the
underlying Specific Plan’s land
uses, zoning, and development
standards.

Consistent. The Project site is located within the Metro Specific Plan (Metro Plan) area and is zoned MXD2-
Metro. The General Plan designates the Metro Plan as a walkable, transit-oriented area that encourages walking, biking, and public transit in order to minimize vehicle miles traveled (VMT). The Project, as proposed,
conforms to the majority of development standards of the Metro Plan, as applicable; however some of these
standards will be addressed through a separate
Development Agreement. The inclusion of nine live/work units along Market Street to the south is also consistent with the Metro Plan’s vision for active ground-floor uses along designated activity streets within the McCandless District.

LU 5-1 Require new development
and redevelopment to be
compatible, complementary, and,
where appropriate, well integrated
with existing residential areas.

Integrate new large-scale
development projects into the
fabric of the existing community
rather than allowing projects to be
insular and self-contained.

This Project will develop a currently vacant 5.49-acre
parcel, thereby activating an underutilized site and
contributing to the fabric of the area. The Project site design, with live/work units oriented toward public
streets, will create an active street presence that integrates with the surrounding streetscape rather than creating an insular or self-contained development.

LU 5-3 Ensure new development is
consistent with specific height
limits established within the City’s
Zoning Ordinance as applied
through the zoning district for all
properties within the City.

Consistent. The Project meets the applicable height
standards by proposing townhome buildings within the
maximum height limit established for the MXD2-Metro
zoning district. The building heights are proposed
between 36 and 49 feet, which are consistent with the
scale of nearby townhome developments within the Metro
Plan area, while the maximum allowed building height is 85 feet.

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CD 5-5 For infill development,
incorporate context-sensitive
design elements that maintain
compatibility and raise the quality
of the area’s architectural
character.

Consistent. The Project is an infill development on a
vacant 5.49-acre parcel within the McCandless District of the Metro Plan. The Project incorporates context-
sensitive design elements that maintain compatibility with the evolving architectural character of the Metro Plan area while raising the quality of the neighborhood. The
townhome site design, with attached two-car garages,
private entrances, and varied rooflines, provides a
residential character that is compatible with the existing residential developments in the surrounding area.

Furthermore, the inclusion of nine live/work units along Market Street introduces an active ground-floor element that conforms directly with the mixed-use character
envisioned by the Metro Plan for the McCandless District.

CD 6-5 Promote consistent
development patterns along
streets, particularly by how
buildings relate to the street, to
promote a sense of visual order,
and provide attractive
streetscapes.

Consistent. The Project promotes consistent
development patterns along Great Mall Parkway,
McCandless Drive, and Market Street by orienting
live/work units to face the public streets while
maintaining landscaped setbacks that create an active and attractive streetscape. The proposed live/work units along Market Street further activate the street frontage and
promote a sense of visual order consistent with the Metro Plan’s vision for pedestrian-oriented activity streets.

Furthermore, the Project includes separated sidewalks,
street trees, and landscaping along the perimeter of the site, consistent with the Metro Plans’ streetscape
standards.

Table 4: Metro Plan Policy Compliance

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Policy Conformance
LU 1.1 Establish the Land Use
Classifications to identify areas
appropriate for residential,
commercial, mixed use, office, and
industrial development. Retail
commercial uses shall be
concentrated in a pedestrian-
oriented pattern.

Consistent. The Project site is zoned MXD2-Metro,
which includes “a mix of retail, restaurant, entertainment, and commercial services uses on the ground floor and
residential or office uses on upper stories. The proposed 109-unit townhome development with nine live/work
units along Market Street is consistent with the mixed-use character of the MXD2 designation by providing both
residential and commercial uses.

LU 2.1 and 2.3 “Arrange the
highest density areas supported by
strong pedestrian and bicycle
access ways and along the major
corridors and transit-adjacent
areas” and “Establish a strong
pedestrian and transit orientation
throughout the Plan Area and limit
development design that prioritizes
automobile access to the detriment
of pedestrian and bicycle access”.

Consistent. The Project is located at the intersection of Great Mall Parkway and McCandless Avenue, directly
across from the Great Mall and within proximity to the
VTA Great Mall light rail station. The Metro Plan
identifies Great Mall Parkway as a major corridor where transit-oriented development is envisioned. The Project’s location supports transit ridership by placing 109 new
residential units and 10 ADUs within walking distance of light rail service.

LU 3.2 Accommodate housing for
a range of housing types, income
levels, and rental and ownership
models, including the following:

Live/work units, Group housing,
Co-living, Senior housing, Student
housing”.

Consistent. The Project proposes 109 townhome units
with 10 ADUs that provides transit-oriented housing
within the McCandless District that diversifies the
housing stock in the Metro Plan. The Project includes
nine live/work units along Market Street, which is one of the housing types specifically listed in Policy LU 3.2. The townhome product type also adds variety to the Metro
area’s housing products, which includes higher-density
apartment and condominium units. Furthermore, the
Project will comply with the City’s Inclusionary Housing Ordinance by providing 22 off-site affordable units at the nearby Gideon Apartments.

PPS 1.7 Parks, Public Space, and
Open Space: Locate parks and
outdoor gathering spaces adjacent
to higher density residential
development to provide a visual
and activity for housing, as well as
to ensure safety through casual
surveillance.

Consistent. The Project is located approximately 1,000 feet away from McCandless Park, the largest park in the Metro area, which provides recreational amenities for the McCandless Subdistrict. The Project meets the minimum
common open space requirement of 100 square feet per
unit (10,900) with 27,832 square feet of public open space in the form of an urban plaza at the corner of Market Street and McCandless Avenue.

Development Standards
The site is located in the Metro High Density Mixed Use (MXD2-Metro) Zoning District. The purpose of the MXD2-Metro zoning district is to create and enhance areas with a mix of retail,

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restaurant, entertainment, and commercial service uses on the ground floor and residential or office uses on upper stories, while maintaining a pedestrian-oriented streetscape. It is intended that the required active ground floor uses will ensure neighborhood-oriented retail and services are provided within walking distance of high-density residential development.

Per Milpitas Zoning Code Table B.12.030-A (Metro Zone Development Standards), the subject parcel is allowed a maximum density of 85 dwelling units per acre and a maximum Floor Area Ratio of 2.5. Table 4 demonstrates the Project’s consistency with the applicable development standards of the MXD2-Metro zoning district, while Table 5 demonstrates the consistency with the Milpitas Metro Specific Plan.

Table 5: Summary of Metro Development Standards

Standards MXD2-Metro Proposed Complies
Density Range (du/
gross acre) 40-85 20 No*
Active Use
Ground floor retail and
active uses required on
80% of frontages on any
one blockface along any
Activity Street
9 Live/work units
proposed along Market
Street to the south
No**
Sidewalk Width
(Activity Street) 18 feet 8-10 feet No**
Front Setback Min.: 0 feet
Max.: 20 feet
5-15 feet along Great Mall
Pkwy Yes
Interior Side Yard
Setback (Min.) 0 feet 1-foot along Market Street Yes
Street Side Setback Min.: 0 feet 14’4” feet along
McCandless Yes
Rear Setback 10 feet N/A Yes
FAR (Min.) 1.0 1.52 Yes
FAR (Max.) 2.5 1.52 Yes
Building Height
(Maximum) 85 feet 36 – 49 feet
Yes
Usable Open Space
Per Dwelling

Per Site
Min. 100 sf per residential
unit, which may be private
or common open space

Min. 5% of the total open
space provided on-site
must be publicly
accessible
(109x100=10,900)

Common open space:
7,273 SF

Public open area (urban
plaza): 27,832 SF
Yes
Long-Term Bicycle
Storage

0.5 long-term spaces per
bedroom 177 (354 bedrooms x 0.5) Yes

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Standards MXD2-Metro Proposed Complies
Short-Term Bicycle
Storage

The residential density of the Project is approximately 20 dwelling units per acre (du/ac), which does not meet the allowed minimum density of 40 du/ac in the MXD2-Metro zoning district.

However, previous approvals established the use of density averaging across The Fields/District development, allowing flexibility in the distribution of units among the various lots. The average density across this development with the proposed Project would be 31 du/ac. The proposed Development Agreement would preserve the minimum residential density of 30 du/ac previously allowed for the subject property under the Transit Area Specific Plan (TASP). Therefore, with density averaging across The Fields/District development, the Project would meet the TASP minimum density with 31 units per acre average.

Site & Architectural Design
The townhomes are grouped into 17 buildings, which are accessed by private streets and driveways. The are designed in a multi-story townhome format, generally three and four levels tall, maximizing vertical space with parking and entry at the ground level, main living areas on the second and third floors, and bonus or entertaining rooms opening onto large, covered terraces at the top level to take advantage of light and views. The building massing is articulated through projections and recesses at adjacent townhomes, as well as staggered balconies that help break up the length of the structures, while top-level terraces create a stepped-back effect that reduces the overall sense of verticality. Outdoor living is emphasized through balconies and top-level terraces featuring sleek black railings and warm wood soffits, while simple balcony columns frame views and reinforce the contemporary character. The roof design combines shed roofs, flat balcony and terrace roofs, and curved sloping roofs at prominent elements, creating a simple yet dynamic contemporary roofline. Large windows enhance natural light and provide expansive views throughout the development.

The project is designed in a Northwest Contemporary architectural style, incorporating modern design principles such as clean, boxy massing, flat and low-slope roofs, large black-framed windows, a mixed-material façade, and minimal ornamentation, with visual interest created through proportions, material contrasts, and balcony and roof projections. This style complements neighboring residential developments, which also reflect contemporary and modern design.

Exterior materials consist primarily of stucco with lap siding accents for added texture, while brick at the ground floor introduces a natural element that helps ground the modern aesthetic. The color palette draws from coastal tones, including whites, cool grays, blues, and green-blues, complemented by the warmer earth tones of the brick.

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Consistent with the intent of the Metro Area and The Fields development, pedestrian ingress and egress is provided throughout the site. New and improved sidewalks along the perimeter of the site will provide access for pedestrians around the Project site. Internal walkways also provide convenient access for pedestrians throughout the site and in between buildings, with primary public sidewalk accessed from two points along Great Mall Pkwy., one at Market Street, and another accessing the urban plaza park at the southwest corner of the site.

The proposed Project includes 109 townhomes with a total of 354 bedrooms. Per MMC Section XIII-C.6.100 (Bicycle Parking), this results in 177 required long-term bicycle spaces and 35 short- term bicycle spaces on-site. The 177 long-term bicycle spaces will be located within the proposed attached garages, with an average of two long-term bicycle spaces per garage. The Project is also conditioned to provide updated plans showing the location and design for all 35 short-term bicycle spaces on-site prior to Building permit issuance, per Condition of Approval #19. Furthermore, multifamily residential projects are required to provide a minimum of 0.5 parking spaces per unit, which would result in 55 parking spaces for this Project. However, the Project will provide a two- car attached garage per unit, as well as four guest parking spaces, resulting in a total of 222 parking spaces throughout the site.

As part of the proposed Project, the City’s Public Works – Engineering Transportation team analyzed the proposal and is requiring that a Traffic Impact Analysis (TIA) be submitted to the City for review and approval. However, Public Works is requiring that the developer perform pavement restoration along the project frontage on McCandless Drive, Center Pointe Drive, and Great Mall Parkway per City Standards. In addition, the developer will also perform street lighting photometric analysis along the frontages of the Project to ensure there is ample amount of light when needed. The photometric plan will be reviewed and approved by the City during the construction plan phase.

The Project fronts Great Mall Parkway to the north, McCandless Avenue to the west, Market Street to the south, and Centre Pointe Drive to the east. Project frontage along Great Mall Parkway will

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Milpitas City CouncilMay 19, 2026

Milpitas City Council
May 19, 2026