TO: COMMUNITY AND ECONOMIC FROM: Christopher Burton
DEVELOPMENT COMMITTEE
SUBJECT: UPDATE ON MARKET READY DATE: August 15, 2023
URBAN VILLAGE
Approved Date
RECOMMENDATION
Accept staff analysis on real estate market-ready urban villages and discuss staff’s recommendation to initiate an urban village planning process for the Saratoga Urban Village (Paseo De Saratoga and Saratoga Avenue Urban Villages consolidated).
SUMMARY AND OUTCOME
Staff was directed in November 2021 by City Council to choose one of four urban villages, South De Anza, Saratoga Avenue, Paseo de Saratoga, and South Bascom Avenue (south), as the next village to initiate an urban village plan. The analysis in this memorandum recommends Saratoga Avenue (Paseo De Saratoga and Saratoga Avenue combined) because it has the highest number of developable sites and a lower risk of residential and small businesses displacement compared to the other considered urban villages.
BACKGROUND
As one of the 12 major strategies outlined in San José’s Envision 2040 General Plan, urban villages are intended to encourage future development with an emphasis on placemaking and creating complete neighborhoods with efficient land uses that concentrate both commercial and residential growth. Urban villages support the creation of pedestrian-oriented, mixed-use communities where jobs, housing, and amenities are situated close together and people can meet their daily needs through active and public transportation modes. Sixty-eight urban villages were originally identified through an extensive public engagement process when the Envision 2040 General Plan was first developed. An urban village plan is like a specific plan consisting of policies, standards, and recommendations that will guide expected development within the urban village plan area. These plans are divided into topic area chapters including but not limited to land use, urban design, placemaking, parks, open space, circulation, streetscape, and implementation. The urban village planning process typically takes between one to two years including research and materials preparation for existing conditions analysis, developing draft CED AGENDA: 8/28/23
ITEM: CC 23-177
FILE: (d)4
8/21/23
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
plan documents, in-person and online public engagement, and other activities. Since the adoption of the General Plan, 15 urban villages have adopted urban village plans approved by the City Council.
As part of a 2019 Cost of Development Study, South De Anza, Paseo De Saratoga, Saratoga Avenue, and South Bascom Avenue (south) were identified as urban villages with near-term potential for housing opportunities. Mid-rise multifamily development was feasible in West San José based on that study. As part of the Four-Year Review of the General Plan, staff was directed on November 30, 2021, to prepare a budget proposal to prepare plans for urban villages that have the potential to unlock near-term housing opportunities based on market demand for the preparation of plans for these villages.
Updated Cost of Development Study
At the November 1, 2022, City Council Study Session, staff presented an update to the 2019 “Report on the Cost of Residential Development.” This study outlined the numerous fiscal constraints to development including factors within the City’s control (impact fees, taxes, permitting) and factors outside the City’s control (cost of construction, interest rates, supply chain issues). The updated study demonstrated that higher-density multifamily development was not financially feasible in any market in San José based on prototypes for five, seven, and twenty-two-story developments. Nevertheless, consistent with the 2019 study, the 2022 study concluded that West San José had the highest market potential for new high-density market-rate housing in the near term.
Given the findings mentioned above, staff proceeded to undergo a selection process between the following urban villages identified in the 2019 study:
• South De Anza
• Saratoga Avenue
• Paseo De Saratoga
• South Bascom Avenue (south)
Staff also consolidated Saratoga Avenue and Paseo de Saratoga Urban Villages given their proximity and opportunity to develop a cohesive plan. South De Anza Avenue Urban Village assumes an expansion to the south considering the potential for increased development opportunities and bridging access across Norman Y. Mineta Highway 85. These urban villages are referred to as subject urban villages throughout the rest of this document and are represented in Map 3 below.
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
Map 3: Subject Urban Villages in Context with San José Growth Areas
ANALYSIS
Given the previous identification of the four potential “market ready” urban villages, staff began a process of data collection and analysis to supplement the findings from the 2022 Cost of Development study to select which of the four villages has the most potential for the development of market-rate housing. Staff analyzed existing conditions to further understand the subject of urban villages. Staff then conducted an analysis to identify the next subject urban village to initiate a planning process based on the following categories of analysis: opportunity sites, existing residential displacement risk, market conditions, and development interest.
Existing Conditions
Context
As part of the 2040 Envision San José General Plan, Major Strategy #3, Focused Growth, identifies growth areas in the city to promote the development of new, attractive urban neighborhoods. The four subject urban villages are growth areas bordering the cities of Cupertino, Campbell, and Saratoga as shown in Map 3.
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
Major Development Projects
Major development projects are described as “of interest to many stakeholders; are impactful across one or more council districts; or are otherwise unique.” In the subject urban villages, there are four of 122 major development projects proposed or approved/under construction. Two of these major development projects are approved signature projects within the established urban village boundaries.
Signature projects are market-rate housing developments proposed in an urban village before an adopted urban village plan. These projects are intended to catalyze in promoting the development of the entire urban village area and must meet the following criteria:
1. An Urban Village, Residential, or Commercial General Plan land use designation
2. More than its fair share of job-producing uses and housing density at 55 dwelling units per acre or higher
3. A visible, prominent location
4. Publicly accessible open space
5. Pedestrian-friendly design
6. Substantial community input
7. High-quality architecture, landscape, and site design; and
8. Recommendations from the City’s Urban Design Review process or equivalent.
As shown in Map 4, there are four approved major development projects in the subject urban villages, two in South De Anza and two in Saratoga (combined). In South De Anza, there are two approved hotel projects at 1090 South De Anza (90 rooms) and 1510 South De Anza (126 rooms). In Saratoga (combined), there is an approved 300-residential-unit mixed-use project at 700 Saratoga Avenue and an approved 800-residential-unit mixed-use project at 1777 Saratoga Avenue. These proposals support the expected viability of the subject urban villages as areas with development potential according to the 2022 Cost of Development study. Approved major development projects like these four can indicate development interest in an area given the expected financial feasibility of the proposal. Signature projects also require increased requirements to get a proposal approved that includes a mix of employment opportunities and housing density expected in an urban village.
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
Map 4: Major Development Projects in Subject Urban Villages Historic Resources
There are nearly 4,000 properties identified in the City’s Historic Resources Inventory. As shown in Map 5, there are four historic resources in the subject urban villages, two in South De Anza, one in Saratoga (combined), and one in South Bascom Avenue (south). Development to and of historic resources would require an extra level of review and costs. This was considered a constraint to development in the market analysis below but did not have much impact given the low number of historic resource sites in each subject urban village.
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
Map 5: Historic Resources in Subject Urban Villages
Methodology for Ranking the Urban Villages Analysis
Staff developed a methodology for ranking the subject urban villages based on the following categories: opportunity sites, displacement risk, market data, and development interest.
Opportunity Sites
A methodology was created to identify sites within the subject urban villages most likely to see redevelopment in the near future, called “opportunity sites.” Using available County and City data, staff identified “opportunity sites” as parcels that meet the following criteria:
a) No existing residential use (including affordable housing) b) Development(s) built before the year 2000
c) Not a historic resource
d) Not a school
e) Public Utilities
f) Entitled project(s) under construction
g) Above half an acre in size to accommodate the expected development associated with urban villages
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
The analysis did not include existing residential properties in determining opportunity sites due to the increased cost of development associated with the requirements for relocating existing residents. These requirements can make redevelopment financially infeasible.
Table 1 – Opportunity Sites, Acreage Distribution
0.5-1 Acre Opportunity Sites 1 Acre or Larger Opportunity Sites
South De Anza 25 13
Saratoga (combined) 41 26
South Bascom Ave
(south) 15 8
Opportunity sites were then evaluated based on redevelopment potential using the Santa Clara County Assessor data. If the assessed land value is higher than the assessed improvement value, this means that the land is worth more than what is built on the lot. A positive ratio would indicate a parcel as “more likely to be developed.”
Table 2 – Opportunity Sites, “More Likely to be Developed” Distribution
0.5-1 Acre Opportunity Sites 1 Acre or Larger Opportunity Sites
South De Anza 9 16
Saratoga (combined) 23 14
South Bascom Ave
(south) 11 4
The analysis incorporated business data to understand the potential for small business displacement in opportunity sites. Small businesses are defined as 35 employees or less, not chain retail, not an office, and not inside a department store. The split of small businesses in opportunity sites and total small businesses is shown in Table 3. This selection process prioritizes the urban village with the least number of small businesses at risk of potential displacement given their location in an opportunity site that is “more likely to be developed.”
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
Table 3 – Small Businesses in Opportunity Sites
Small Business in Opportunity Sites “More
Likely to be Developed”/ Total Small
Businesses
Total Active Businesses
South De Anza 23/72 237
Saratoga (combined) 25/54 591
South Bascom Ave
(south) 25/56 150
Saratoga (combined) has the highest number of opportunity sites, i.e., sites that are “more likely to be developed.” When considering the number of estimated impacted small businesses, ranks above South De Anza followed by South Bascom Avenue (south).
Displacement Risk Analysis
Although sites with existing residential units are less likely to redevelop given the costs of tenant relocation, redevelopment may still be feasible on some sites. Given this, residential displacement may still occur. Staff followed the direction from previous urban village and station area planning work by incorporating demographic data to assess potential residential displacement risk. This approach is consistent with the analysis used in the City’s Citywide Residential Anti-Displacement Strategy. Typically, data on income, race, ethnicity, and housing tenure is used to make this assessment. This is consistent with the methodology used in the City’s Citywide Residential Anti-Displacement Strategy. The demographic data is based on the U.S. Census Bureau American Community Survey (ACS) 5-Year block group data.
The following census tables were used in the displacement risk analysis:
• B02001 – Race
• B03002 – Hispanic or Latino Origin by Race
• B15003 – Educational Attainment
• B19013 – Median Household Income
• B19025 – Aggregate Household Income
• B25003 – Tenure
• B25070 – Gross Renter as a Percentage of Household Income • B25071 – Median Gross Rent as a Percentage of Household Income • C02003 – Detailed Race
• C17002 – Ratio of Income to Poverty Level
The data was compared across two five-year periods, 2011-2016 and 2016-2021. For example, Figure 1 illustrates that South De Anza residents’ median household income ($231,350) is 40% higher than Saratoga (combined) and 51% higher than South Bascom Avenue (south) according
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
to 2021 ACS 5-Year data. Higher overall incomes would indicate that South De Anza residents would likely have the least risk for economic-related housing displacement. This is further elaborated in the analysis of rent as a percentage of income and rent burden as shown in Figures 2 and 3.
Figure 1 - Median Income, 2016 and 2021
Higher median incomes are reflected in how residents in the subject urban villages experience rent as a function of resident income. Figure 2 demonstrates that South Bascom Avenue (south) residents’ median gross rent as a percentage of household income is 3% higher than Saratoga (combined) and 10% higher than South De Anza according to 2021 ACS 5-Year data. 2016 ACS 5-Year data follows a similar trend.
Figure 2 - Median Gross Rent as % of Household Income, 2016 and 2021 The percentage spent on rent is a common indicator of potential displacement. If a tenant spends more than 30% on housing, then they are considered rent-burdened meaning a higher likelihood that their current housing costs are unaffordable. Though South De Anza residents have 231,346.25
154,710.21
138,002.38
153,059.00
108,098.61
94,676.75
- 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 South De Anza
Combined Saratoga
South Bascom South
2016 2021
22%
28.61458333%
31.5625%
24%
30.43%
33%
0 5 10 15 20 25 30 35
South De Anza
Saratoga (Combined)
South Bascom South
2016 2021
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
experienced an increase in rent burden between 2016 and 2021 (9%), South De Anza residents are proportionally less likely to be rent burdened compared to Saratoga (combined) and South Bascom Avenue (south) in both 2016 and 2021 as shown in Figure 3.
Figure 3 - Percentage Rent Burdened 2016, 2021
Unaffordable housing costs usually disproportionally impact communities of color due to the persistence of a racial wealth gap. Race and ethnicity remain determinative factors in how San José residents can secure housing for themselves and their families. For example, the Citywide Residential Anti-Displacement Strategy found that these economic racial disparities result in:
• Black and Hispanic/Latino residents being overrepresented in San José’s homeless counts.
• Hispanic/Latino residents experiencing higher levels of unsuitable housing quality and overcrowding.
• Hispanic/Latino, Asian, and Black San José residents being excluded from supportive housing programs due to qualifying citizenship requirements.
These and other factors indicate how and why certain communities and neighborhoods may be especially vulnerable to displacement and are at higher risk for housing instability. The following analysis demonstrates how race may affect resident displacement in the subject urban villages. 27%
45%
57%
73%
48%
43%
0% 20% 40% 60% 80% 100% 120%
South De Anza
Saratoga (Combined)
South Bascom South
2016
Rent Burdened Not Rent Burdened Other
36%
43%
53%
61%
53%
47%
0% 20% 40% 60% 80% 100% 120%
South De Anza
Saratoga (Combined)
South Bascom South
2021
Rent Burdened Not Rent Burdened Other
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
Figure 4 - Racial Demographics, 2016 and 2021
Comparing the subject urban villages by racial demographics, Figure 4 indicates that South De Anza is overwhelmingly Non-Hispanic White and Asian American and Pacific Islander (AAPI) compared to Saratoga (combined) and South Bascom Ave (south) which are more evenly diverse.
Though racial demographics are more even in Saratoga (combined) and South Bascom Ave (south) compared to South De Anza, Non-Hispanic White, and AAPI communities collectively represent the vast majority of percentage aggregate income regardless of urban village as seen in Figure 5.
Figure 5 - Aggregate Income by Race, 2016 and 2021
That same trend occurs for housing tenure by race across the subject urban villages. Black and Hispanic residents are overwhelmingly renters compared to other racial groups who are 0% 20% 40% 60% 80% 100%
South De Anza
Saratoga (Combined)
South Bascom South
South De Anza Saratoga
(Combined)
South Bascom
South
NH White 26% 38% 56%
AAPI 68% 38% 16%
Black 0% 4% 5%
Hispanic/Latino 4% 17% 18%
Other 2% 3% 5%
2016
NH White AAPI Black Hispanic/Latino Other
0% 20% 40% 60% 80% 100%
South De Anza
Saratoga (Combined)
South Bascom South
South De Anza Saratoga
(Combined)
South Bascom
South
NH White 20% 32% 45%
AAPI 74% 45% 26%
Black 0% 5% 6%
Hispanic/Latino 3% 12% 18%
Other 3% 8% 5%
2021
NH White AAPI Black Hispanic/Latino Other
24%
50%
66%
75%
41%
18%
0% 20% 40% 60% 80% 100%
South De Anza
Saratoga (Combined)
South Bascom South
2016
White AAPI Black Hispanic Other
28%
40%
50%
72%
52%
34%
0% 20% 40% 60% 80% 100%
South De Anza
Saratoga (Combined)
South Bascom South
2021
White AAPI Black Hispanic Other
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
proportionally more likely to own their homes as Figures 6,7, and 8 illustrate across 2016 and 2021.
Figure 6 - Tenure by Race, South De Anza 2016, 2021
Figure 7 - Tenure by Race, Saratoga (combined) 2016, 2021 23%
82%
65%
61%
63%
78%
18%
35%
39%
37%
0% 20% 40% 60% 80% 100%
Other
Hispanic
Black
AAPI
NH White
All
2016
Owner Renter
86%
47%
64%
61%
85%
14%
53%
36%
39%
15%
0% 20% 40% 60% 80% 100%
Other
Hispanic
Black
AAPI
NH White
All
2021
Owner Renter
26%
10%
35%
70%
52%
50%
74%
90%
65%
30%
48%
50%
0% 20% 40% 60% 80% 100%
Other
Hispanic
Black
AAPI
NH White
All
2021
Owner Renter
35%
15%
4%
44%
53%
42%
65%
85%
96%
56%
47%
58%
0% 20% 40% 60% 80% 100%
Other
Hispanic
Black
AAPI
NH White
All
2016
Owner Renter
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
Figure 8 - Tenure by Race, South Bascom South 2016, 2021 Considering aggregate income by race and tenure by race in the subject urban villages, Black and Hispano/Latino residents are more likely to experience higher risks of housing instability. This is more evident in South Bascom Avenue (south) and Saratoga (combined), which have more Black and Hispanic/Latino residents proportionally than South De Anza as shown in Figure 4.
Across all examined income, tenure, and race data in this analysis, the risk for existing residential displacement is highest in South Bascom Avenue (south) followed by Saratoga (combined) and then South De Anza Blvd considering the above-mentioned demographic analysis.
Market Data
Existing rental data is relevant to the market analysis as higher rents support the financial feasibility of market-rate developments. Commercial rental data between 2013, 2018, and 2023 was collected from CoStar, a provider of commercial real estate data and analysis. An expanded catchment area was drawn over each subject urban village to collect rental data that was more representative of each respective urban village and the surrounding context. The average commercial rent per square foot is represented in Figure 9 below. South De Anza had the highest commercial rents per square foot across the 10 years followed by Saratoga (combined) and then South Bascom Avenue (south) in 2023.
23%
34%
56%
57%
50%
77%
66%
100%
44%
43%
50%
0% 20% 40% 60% 80% 100%
Other
Hispanic
Black
AAPI
NH White
All
2016
Owner Renter
23%
20%
16%
71%
68%
58%
77%
80%
84%
29%
32%
42%
0% 20% 40% 60% 80% 100%
Other
Hispanic
Black
AAPI
NH White
All
2021
Owner Renter
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
Figure 9 – Commercial Rents per Square Feet
Multifamily rents were also analyzed across the same 10-year span in different unit sizes. South De Anza has the highest residential rents followed by Saratoga (combined) and South Bascom Avenue (south) as shown in Figures 10 – 13. For example, in 2023, two-bedroom rents in South De Anza are $639 more than Saratoga (combined) and $841 more than South Bascom Avenue (south) as shown in Figure 11. Figure 10 shows that residential rents are closer for one-bedrooms with South De Anza being $85 more than Saratoga (combined) and $194 more than South Bascom Avenue (south). South De Anza has the highest rents which would support the financial feasibility of new real estate development followed by Saratoga (combined) and South Bascom Avenue (south) given available rent data.
$28.00
$35.00
$42.00
$26.00
$32.50
$35.20
$23.30
$27.52
$37.36
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
2013 2018 2023
S De Anza South Bascom Saratoga (Combined)
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
Figure 10 – Studio Multifamily Rents Figure 11 - One Bedroom Multifamily Rents Figure 12 -Two Bedroom Multifamily Rents Figure 13 - Three Bedroom Multifamily Rents Development Interest
Staff gathered permits related to new developments in each subject urban village in the past five years (2018-2023) to gauge developer interest in the subject urban villages. As shown in Table 4, there are two developments in South De Anza, four in Saratoga (combined), and three in South Bascom Avenue (south). Saratoga (combined) has the highest number of development interest $1,475
$2,000
$2,153
$1,375
$1,625
$1,750
$1,357
$1,640
$1,668
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
$2,400
2013 2018 2023
S De Anza South Bascom Combined Saratoga
$1,625
$2,050
$2,194
$1,330
$1,725
$2,000
$1,483
$1,953
$2,109
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
$2,400
2013 2018 2023
S De Anza South Bascom Combined Saratoga
$2,250
$2,558
$3,041
$1,550
$1,875 $2,200 1,821
2,261
2,402
$1,500
$1,700
$1,900
$2,100
$2,300
$2,500
$2,700
$2,900
$3,100
$3,300
2013 2018 2023
S De Anza South Bascom Combined Saratoga
$3,050
$3,625
$4,000
$1,900
$2,350
$2,581
$1,953 $2,316 $2,433
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
2013 2018 2023
S De Anza South Bascom Combined Saratoga
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
with 1,100 residential units and nearly 117,000 square feet of proposed commercial space which is greater than South Bascom Avenue (south) followed by South De Anza.
Table 4 – Developer Related Permits in the Last 5 Years (AMANDA) Urban Village Address, Permit (Year) Description Status South De Anza 1090 S. De Anza Blvd.
Site Development Permit
(2019)
90 Room Hotel Approved
South De Anza 7285 Bark Lane
Special Use Permit (2019)
126 Room Hotel Approved
South De Anza 1380 S. De Anza Blvd.
Conditional Use Permit
(2019)
103 Unit Care Facility Under
Construction
South De Anza 1510 S. De Anza Blvd.
Site Development Permit
(2021)
132 Room Hotel Approved
Saratoga
(combined)
603 Saratoga Ave.
Special Use Permit (2019)
Convert gas station to
commercial retail
building (9,070 sq ft)
Approved
Saratoga
(combined)
700 Saratoga Ave.
Planned Development
Permit (2020)
300 Residential Units,
Mix Use Commercial
(17,800 sq ft)
Approved
Saratoga
(combined)
5365 Prospect Road
Site Development Permit
(2018)
Addition to Westgate
West Shopping Center
(40,000 sq ft)
Constructed
Saratoga
(combined)
1777 Saratoga Ave.
Planned Redevelopment
Rezoning (2020)
800 Residential Units,
Mixed Use (50,000 sq ft),
and Educational/Office
Facility (450,000 sq ft).
Approved
South Bascom
Avenue (south)
2350 S. Bascom Ave.
Ministerial SB 35 Permit
(2021)
123 Residential Units,
Mix Use Commercial
(1,437 sq ft)
Under
Construction
South Bascom
Avenue (south)
2375 S. Bascom Ave.
Conditional Use Permit
(2021)
83-Unit Residential Care
Facility
Under
Construction
South Bascom
Avenue (south)
3229 S. Bascom Ave.
Special Use Permit (2021)
New Commercial
Building and Day Care
Center (6,350 sq ft)
Under
Construction
Final Ranking and Recommendation
In November 2021, staff were directed by City Council to undergo a selection process between the subject urban villages (South De Anza, Paseo de Saratoga, Saratoga, and South Bascom
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
Avenue (south) given their development potential as identified from developer feedback and Cost of Development studies. Staff analyzed each subject urban village concerning market-rate development feasibility and displacement risk for existing residents. Table 5 ranks the subject urban villages based on the categories of analysis mentioned in this document including:
• Opportunity sites with the highest number of sites “more likely to be developed” • Potential for existing residential displacement
• Urban villages with supportable commercial rents for new development • Development Interest
The extra weight was given to opportunity sites in the final ranking analysis to maximize the potential for the greatest amount of new near-term developments in West San José.
Table 5 – Subject Urban Villages Ranked by Selection Criteria Saratoga (combined) South De Anza South Bascom
Avenue (south)
Opportunity Sites 1st 2nd 3rd
Least Residential
Displacement Risk
2nd 1st 3rd
Supportable
Commercial Rents
2nd 1st 3rd
Development Interest 1st 2nd 3rd
FINAL RANK 1st 2nd 3rd
Given the above analysis, the staff is recommending initiating an urban village planning process for Saratoga (combined).
EVALUATION AND FOLLOW-UP
Following the acceptance of the staff analysis selecting the Saratoga (combined) Urban Village for the preparation of an urban village plan, staff will initiate the planning process. A request for a proposal will be drafted with a scope of work and outlined budget. Funds have already been allocated for this work. $400,000 was approved in the 2022-2023 Adopted Budget and rebudgeted to the 2023-2024 Adopted Budget. The CEQA Pre-Clearance component of the plan was approved for $300,000 in the 2023-2024 Adopted Budget. Staff is expected to begin public
COMMUNITY ECONOMIC DEVELOPMENT COMMITTEE
August 15, 2023
Subject: Update on Market Ready Urban Village
engagement in Spring 2024 and the anticipated completion date of the approved urban village plan is Q2 2025.
Based on the analysis discussed in this memorandum, staff proposes initiating a Planning process for the South De Anza Urban Village in 2025 and anticipates submitting a budget proposal for FY 2024-2025 to fund this process. While development conditions could change, there could be a need to update staff’s analysis from this point in time, staff recommends then initiating a planning process for the South Bascom Avenue (south) Urban Village in 2026.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, the City Manager’s Budget Office, the Department of Parks, Recreation & Neighborhood Services, the Department of Transportation, and the Office of Economic Development and Cultural Affairs. /s/
CHRISTOPHER BURTON
Director, Planning, Building, and Code
Enforcement
For questions, please contact Michael Brilliot, Deputy Director, at [email protected] or (408) 535-7831.