San Jose City Council
March 11, 2025

TO: HONORABLE MAYOR FROM: Planning Commission

AND CITY COUNCIL

SUBJECT: See Below DATE: February 24, 2025

COUNCIL DISTRICT: 3

SUBJECT: H23-007 & ER23-075 - A Site Development Permit to Allow for Certain Real Property Located at 380 North 1st Street

RECOMMENDATION

On February 12, 2025, the Planning Commission, with a vote of 7-0-2 (Bickford and Oliverio absent), recommended that the City Council take all of the following actions:

1. Adopt a resolution certifying the 380 North 1
st Street Environmental Impact
Report, and making certain findings concerning significant impacts, mitigation measures, alternatives, and adopting a statement of overriding considerations and a related mitigation monitoring and reporting plan, in accordance with the California Environmental Quality Act (CEQA), as amended.

2. Adopt a resolution approving, subject to conditions, a Site Development Permit to allow the demolition of an approximately 12,000-square-foot office building that is an eligible City Landmark and the removal of 20 trees, including 10 ordinance- size trees, for the construction of a seven-story, 118-unit residential building with 74 parking spaces, including six units affordable to very-low-income households, on an approximately 0.49-gross-acre lot.

SUMMARY AND OUTCOME

If the City Council approves all the actions listed above as recommended by the Planning Commission, the applicant would be allowed to demolish an approximately 12,000-square-foot, two-story office building that is an eligible City Landmark and remove 20 trees, including 10 ordinance-size trees, with a requirement for 56 replacement trees, and construct a seven-story, approximately 119,170-square-foot multifamily residential building with 118 units, including six units affordable to households earning up to 50% of the area median income (AMI), and 74 vehicle parking spaces in automated stackers in a ground-floor garage, on an approximately 0.49- COUNCIL AGENDA: 3/11/25
FILE: 25-224
ITEM: 10.1(c)

HONORABLE MAYOR AND CITY COUNCIL
February 24, 2025
Subject: H23-007 & ER23-075 - A Site Development Permit to Allow for Certain Real Property Located at 380 North 1st Street

gross-acre lot. The applicant will pay the in-lieu offsite planting fee for the required 56 replacement trees.

BACKGROUND

On February 12, 2025, the Planning Commission held a public hearing to consider the final EIR and Site Development Permit. An overview of the public hearing is provided below. Commissioner Lardinois made a motion to approve the recommendation.

Commissioner Young seconded the motion. The motion passed 7-0-2 (Bickford and Oliverio absent). The Planning Commission recommended that the City Council certify the EIR pursuant to CEQA and approve the Site Development Permit.

ANALYSIS

Analysis of the proposed CEQA clearance and Site Development Permit, including conformance with the General Plan, Municipal Code, Citywide Design Standards and Guidelines, and City Council Policies, are contained in the attached staff report.

Climate Smart San José Analysis
The recommendation in this memorandum aligns with Climate Smart San José Strategy

2.1, “Densify the city to accommodate our future neighbors.” The project would provide 118 units of housing at a density of 244 dwelling units per acre on a site near Downtown San José that is well-served by public transit (light rail and bus) and is close to parks, libraries, and other public services, as well as shopping and employment centers.

EVALUATION AND FOLLOW-UP

Should the City Council adopt the resolution approving the Final Environmental Impact Report and the resolution approving the Site Development Permit, the applicant would be allowed to develop the project as described above.

COORDINATION

The preparation of this memorandum has been coordinated with the City Attorney’s Office.

HONORABLE MAYOR AND CITY COUNCIL
February 24, 2025
Subject: H23-007 & ER23-075 - A Site Development Permit to Allow for Certain Real Property Located at 380 North 1st Street

PUBLIC OUTREACH

This memorandum will be posted on the City’s Council Agenda website for the City Council hearing scheduled for March 11, 2025.

Staff followed Council Policy 6-30: Public Outreach Policy to inform the public of the proposed project. The required onsite sign has been posted on all project frontages since August 4, 2023. A joint EIR Scoping/Community Meeting was held on September 11, 2023, via Zoom webinar to introduce the proposed project to the community and gather community input. There were approximately 19 members of the public in attendance at the meeting, and 10 members of the public provided comments. Two people expressed support for the project, while others raised concerns about the loss of views of Downtown, privacy for residents in nearby buildings, limited parking, traffic safety, and the affordability of the residential units.

Staff received two comments via email. A representative of Ryland Mews Homeowners Association (nearby residential complex) expressed concerns about the amount of parking provided by the project, impacts on nearby solar installations, increased noise pollution, and maintenance of the rail right-of-way adjacent to the project site. A representative of Catalyze SV expressed the organization’s support of the proposal and urged the applicant to include more bicycle parking, provide transit passes to residents, unbundle parking, increase the building height, shrink the building footprint, and increase the percentage of affordable units.

A notice of the public hearing was distributed to the owners and tenants of all properties located within 1,000 feet of the project site and posted on the City website. The staff report is also posted on the City website. Additionally, a notice of the public hearing was posted in a newspaper of record (San José Post Record) on January 22, 2025. Staff has been available to respond to questions from the public.

Historic Landmarks Commission
The project was referred to the Historic Landmarks Commission. The project was heard at the Historic Landmarks Commission meeting on November 6, 2024, as part of the preparation and notice of availability of the Environmental Impact Report. Members of the Historic Landmarks Commission expressed concern about the possible demolition of a building that is an eligible City Landmark and eligible for listing on the California Register of Historical Resources and made the following recommendations:
• Designation of the existing building as a City Landmark. • Exploration of the potential for adaptive reuse of the building or its incorporation into the project design.
• Exploration of the potential for a reduction in project density or increase in building height to preserve the building.
• Exploration of all other preservation alternatives.

HONORABLE MAYOR AND CITY COUNCIL
February 24, 2025
Subject: H23-007 & ER23-075 - A Site Development Permit to Allow for Certain Real Property Located at 380 North 1st Street

At the hearing, a representative of the Preservation Action Council of San José recommended that the brick siding on the upper floors of the proposed building be continued to the pedestrian level to strengthen the building’s connection to the Borcher Brothers Building, City Landmark #994, located approximately 80 feet north of the project site at 396 North 1
st Street. In response, the applicant revised the design of the North 1st Street elevation to include brick siding at ground level.

COMMISSION RECOMMENDATION AND INPUT

The project was heard at the Planning Commission hearing on February 12, 2025, previously on the consent calendar but moved to the Public Hearing portion of the agenda, as follows:

Staff Presentation
Kora McNaughton, staff planner, provided an oral presentation on the proposed project.

The presentation included an overview of the project and conformance with the General Plan, Titles 13 and 20 of the San José Municipal Code, the Citywide Design Standards and Guidelines, and City Council Development Policies. Nhu Nguyen, Environmental Project Manager, provided an oral presentation on the environmental review process, public outreach, and project compliance with the California Environmental Quality Act (CEQA).

Applicant Presentation
Erik Schoennauer, representing the applicant, opened by describing the extensive public outreach that was conducted for the North 1
st Street Local Transit Village Plan in
2022 (staff note: the Transit Village Plan applies to a segment of North 1st Street approximately two blocks north of the project site, but does not include the site itself).

He explained that the Transit Residential land use designation was applied to many properties in the area.

Mr. Schoennauer stated that the site is well-located for urban housing, within ¼ mile of bus lines, light rail, and parks, with employment opportunities, restaurants, and other businesses nearby. He shared photos of the existing building on the site showing boarded-up windows and explained that the building has been totally vacant for nine months and 60% vacant for more than five years. In addition, the building is subject to frequent break-ins and has become an eyesore. The new building will almost fully utilize the allowed density of the site (244 dwelling units per acre, compared to the 250 dwelling units per acre permitted in the Transit Residential land use designation), and will include an extensive brick façade to reference nearby historic buildings and add visual interest to the streetscape.

HONORABLE MAYOR AND CITY COUNCIL
February 24, 2025
Subject: H23-007 & ER23-075 - A Site Development Permit to Allow for Certain Real Property Located at 380 North 1st Street

Public Hearing
Chair Tordillos opened the public comment portion of the agenda. Two members of the public spoke during the public comment period. The comments of the speakers are summarized below:
• A representative of Nor Cal Carpenters Local Union 405 expressed concern that the developer will prioritize the lowest bids when hiring contractors, adding that the lowest bidders often pay low wages and don’t provide opportunities for accredited apprentices. He also stated that although the City’s Responsible Construction Ordinance is supposed to prevent the use of unscrupulous contractors, the City lacks the staff to enforce it.
• A representative of CatalyzeSV stated that the organization first expressed its support for the project in September 2023. He praised project amenities, including the bicycle storage room and the roof deck amenity, but stated the organization’s disagreement with the developer’s decision to reduce the number of affordable units from 15% to 5% of the total units. He also urged the inclusion of ground-floor uses that would help activate the street. Finally, he stated that the project review process was relatively quick and that CatalyzeSV hopes to see more projects like it in the future.

Chair Tordillos closed the public comment portion of the agenda and invited the applicant team to respond to comments or provide any closing statements.

Mr. Schoennauer thanked CatalyzeSV for their support and thanked City staff for their work on the EIR. He then explained that the Responsible Construction Ordinance requires that developers provide documentation from the state to demonstrate that none of the contractors on the project has a judgment against them for wage theft or other violations. Without such documentation, the City will not issue building permits. Mr.

Schoennauer said the system ensures that only contractors who are following the law work in San José, and he is confident that the system will work well going forward.

Commissioner Discussion
There was no discussion of the project among the commissioners. Commissioner Lardinois introduced a motion to adopt the staff recommendation. Commissioner Young seconded the motion. Chair Tordillos then called for a vote on the motion by Commissioner Lardinois and seconded by Commissioner Young. The motion passed 7- 0-2 (Bickford and Oliverio absent).

CEQA

The City of San José, as the lead agency for the proposed project, prepared the 380 North First Street Draft Environmental Impact Report (Draft EIR). The Notice of

HONORABLE MAYOR AND CITY COUNCIL
February 24, 2025
Subject: H23-007 & ER23-075 - A Site Development Permit to Allow for Certain Real Property Located at 380 North 1st Street

Preparation was circulated from August 28, 2023 to September 27, 2023. The Draft EIR was circulated for public review and comment from October 18, 2024 to December 2, 2024. A First Amendment to the Draft EIR was prepared that provided responses to public comments submitted during the public circulation period and revisions to the text of the DEIR. The First Amendment together with the Draft EIR constitute the Final Environmental Impact Report (Final EIR) for the proposed project.

Summary of Environmental Impacts Reduced to Less than Significant with Mitigation The Draft EIR identified potential environmental impacts to Air Quality, Biological Resources, Cultural Resources, Hazards and Hazardous Materials, and Noise. With implementation of the mitigation measures specified in the Mitigation Monitoring and Reporting Program (“MMRP”) prepared for the project, these impacts are reduced to less than significant levels. As part of the certification of the Final EIR, the City Council will need to approve the associated MMRP for the project.

Summary of Environmental Impacts Determined to be Significant and Unavoidable The Draft EIR found that the project would result in a significant and unavoidable impacts to Cultural Resources due to the proposed demolition of the building at 380 North First Street eligible for listing under the California Register of Historical Resources and the San José Historic Resources Inventory as a Candidate City Landmark.

If City Council were to approve the project as proposed, in compliance with CEQA Guidelines Section 15093, a Statement of Overriding Considerations must be adopted with findings that the specific economic, legal, social, technological, or other benefits, including region-wide or statewide environmental benefits, of a proposed project outweigh the unavoidable adverse environmental effects if an environmentally superior alternative is not chosen. The Statement of Overriding Consideration must find that the economic and social benefits of the proposed project, as listed in the CEQA Resolution (Exhibit F) outweigh its significant environmental impacts.

Alternatives
The Draft EIR evaluated four selected project alternatives, the No Project – No Development Alternative, the No Project – Development Consistent with Existing Land Use Designation, the Preservation of Historic Resource On-Site Alternative, and the Reduced Density Preservation Alternative that could lessen the significant effects of the project and achieve the project objectives, in accordance with CEQA Guidelines Section 15126.6. Alternatives that were considered but rejected include the Location Alternative and the Relocation of the Historic Resource Off-Site Preservation Alternative.

The No Project – No Development Alternative would avoid all project impacts; however, CEQA Section 15126.6(e)(2) requires that when the no-project alternative is the environmentally superior alternative, another alternative shall be identified. The

Reduced Density Preservation Alternative would be the environmentally superior alternative beyond the no-project alternative because it would preserve the existing historical building on-site. The significant unavoidable impacts to historical resources would be avoided under this alternative. The Reduced Density Preservation Alternative

HONORABLE MAYOR AND CITY COUNCIL
February 24, 2025
Subject: H23-007 & ER23-075 - A Site Development Permit to Allow for Certain Real Property Located at 380 North 1st Street

would still be required to implement all other mitigation measures, Standard Permit Conditions, and Conditions of Approval identified for the proposed project. As a result, the impacts to air quality, biological resources, subsurface cultural resources, hazardous waste, and noise would be reduced to a less than significant level consistent with the proposed project.

DEIR Circulation Comments
Six comments were received during the DEIR public circulation period, comprising three from regional and local agencies and three from members of the public, organizations, and businesses. City staff prepared responses in a First Amendment/Response to Comments document addressing the following topics:

Cultural Resources and Tribal Cultural Resources
• Sensitivity for tribal cultural resources on the project site and recommendations to reduce potential impacts to potential uncovered tribal cultural resources.

Hydrology and Water Quality
• The project should incorporate water conservation measures. • Textual changes requested to update the identification of the Guadalupe River watershed, the Municipal Regional Permit issuance date, Valley Water’s Well Ordinance, flood zone map numbers, and the Groundwater Management Plan.

Utilities and Service Systems
• Identification of Valley Water fee title property and easements and requirements to obtain permits from Valley Water at the time of project development.

Transportation
• The project applicant would need to notice the VTA of construction work that would block any bus services and obtain appropriate permits from the agency to construct the project.

DEIR Circulation Unnecessary
Staff responded to the comments and questions in the First Amendment. None of the comments raised represent new significant information that would warrant recirculation of the Draft EIR pursuant to CEQA Guidelines Section 15088.5(a). The recirculation of an EIR is required when significant new information is added to the EIR after public notice is given of the availability of the Draft EIR for public review but before certification. “Information” can include changes in the project or environmental setting as well as additional data or other information. New information added to a Draft EIR is not “significant” unless the Draft EIR is changed in a way that deprives the public of meaningful opportunity to comment on a substantial adverse environmental effect of the project or a feasible way to mitigate or avoid such an effect (CEQA Guidelines Section 15088.5).

HONORABLE MAYOR AND CITY COUNCIL
February 24, 2025
Subject: H23-007 & ER23-075 - A Site Development Permit to Allow for Certain Real Property Located at 380 North 1st Street

The First Amendment was posted on the City’s website on January 31, 2025, and all commenters were notified via email of the document’s availability. The Draft Environmental Impact Report (DEIR) and First Amendment are available for public review on the City’s website:
https://www.sanjoseca.gov/your-government/departments-offices/planning-building- code-enforcement/planning-division/environmental-planning/environmental- review/active-eirs/380-north-first-street-residential-project.

PUBLIC SUBSIDY REPORTING

This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.

/s/

CHRIS BURTON
Secretary, Planning Commission

For questions, please contact John Tu, Division Manager, at [email protected] or
(408) 535-6818.

ATTACHMENT - Staff Report

PLANNING COMMISSION AGENDA: 2-12-25
ITEM: 4.b.

TO: PLANNING COMMISSION FROM: Christopher Burton
SUBJECT: H23-007 & ER23-075 DATE: February 12, 2025
______________
COUNCIL DISTRICT: 3
Type of Permit Site Development Permit
Demolition Approximately 12,000 square feet
Proposed Land Uses Multifamily residential
New Residential Units 118
New Square Footage Approximately 119,170 square feet
Tree Removals 20 trees (10 ordinance-size)
Project Planner Kora McNaughton
CEQA Clearance 380 North 1st Street Environmental Impact Report CEQA Planner Nhu Nguyen

RECOMMENDATION
Staff recommends that the Planning Commission recommend that the City Council take all of the following actions:

1. Adopt a resolution certifying the 380 North 1st Street Environmental Impact Report, and making certain findings concerning significant impacts, mitigation measures, alternatives, and adopting a statement of overriding considerations and a related mitigation and monitoring and reporting plan, in accordance with the California Environmental Quality Act (CEQA), as amended; and

2. Adopt a resolution approving, subject to conditions, a Site Development Permit to allow the demolition of an approximately 12,000-square-foot office building that is an eligible City Landmark and the removal of 20 trees, including 10 ordinance-size trees, for the construction of a seven- story, 118-unit residential building with 74 parking spaces, including six units affordable to very- low-income households, on an approximately 0.49-gross-acre lot.

PROPERTY INFORMATION
Location Corner lot with frontage on North 1st Street, Bassett Street, and North 2nd Street (380 North 1st Street)
Assessor Parcel No. 249-44-088
General Plan Transit Residential
Growth Area N/A
Zoning TR Transit Residential
Attachment - Staff Report
File No. H23-007 & ER23-075

Historic Resource Yes
Annexation Date March 27, 1850 (Original City)
Council District 3
Acreage 0.49 acres

PROJECT BACKGROUND
As shown on the Vicinity Map/Aerial Photo (Figure 1), the project site is a corner lot spanning one block with frontage on North 1st Street, Bassett Street, and North 2nd Street. The site is currently developed with a two-story, 12,000-square-foot office building and a surface parking lot. Adjacent uses include three-story multifamily residential buildings to the east and west; a rail right-of-way to the north; and a one-story county library building and surface parking lot to the south. The Blue and Green Valley Transportation Authority (“VTA”) light rail lines run along the site’s North 1st Street frontage.

File No. H23-007 & ER23-075

On April 14, 2023, an application was filed by Erik Schoennauer on behalf of the owner, 380 N 1st Street QOZB, LLC, for a Site Development Permit to allow the demolition of the existing office building and the removal of 20 trees, including 10 ordinance-size trees, for the construction of a seven-story, 118- unit residential building with 74 parking spaces, and including six units affordable to very-low-income households, on an approximately 0.49-gross-acre lot.

PROJECT DESCRIPTION
The project consists of the demolition of the existing two-story office building and the construction of a multifamily residential building with 118 units. The proposed building has seven stories and a height of 82 feet three inches. A parking garage will provide 74 vehicle parking spaces in automated stackers on the ground level and one subterranean level, with access from a single driveway on Bassett Street.

There are also two lobbies, a leasing office, bicycle storage, and utility and service rooms on the ground floor.

The residential units are located on floors two through seven, and consist of 17 studios, 81 one- bedroom units, and 20 two-bedroom units. Eleven units have private balconies and 10 have private patios. Common open space for the project consists of a fitness center on the second floor (692 square feet), and a community room and a roof deck on the seventh floor (811 square feet and 450 square feet, respectively). The subject site is located approximately 300 feet from Ryland Park and approximately ¼ mile from St. James Park.

Six of the project’s residential units (5%) will be reserved for very-low-income households, and pursuant to California’s Density Bonus Law (Government Code Section 65915), the project is eligible for a 20% density bonus, one development concession, and unlimited waivers of development standards.

The allowed density on the site is 250 DU/AC and the project density is 244 DU/AC, so the project will not utilize the density bonus. The applicant is requesting the following concessions and waivers pursuant to the Density Bonus Law:
• One concession to provide private open space for 21 units in lieu of the 59 units (50% of total units) otherwise required pursuant to SJMC Section 20.55.102.D.1. • One waiver to eliminate the building stepback requirement for the Bassett Street and North 2nd Street elevations in Citywide Design Standards Section 3.1.1, Standard 1. • One waiver to eliminate the five-foot landscape buffer required along the north property line, pursuant to Citywide Design Standards Section 2.3.8, Standard 9.

SURROUNDING USES
General Plan Zoning District Existing Use
North Urban Residential Urban Residential Rail Right-of-way South Public/Quasi-Public Public/Quasi-Public Library
East Neighborhood/
Community Commercial Commercial Pedestrian Multifamily Residential West Transit Residential Transit Residential Multifamily Residential File No. H23-007 & ER23-075

• One waiver to eliminate the transformer screening on North 2nd Street required pursuant to Citywide Design Standards Section 2.2.3, Standard 3.

The project would result in the demolition of the existing office building on the site, which was constructed in 1964. According to the Historic Resource Evaluation and Local Landmark Assessment (Exhibit H) prepared by Evans & De Shazo, Inc., and dated April 5, 2023, the building design is an example of the New Formalism architectural style, which began in the mid-1950s and combined elements of Modern and Classical architecture. Character-defining features of the subject building include full-height columns supporting arches, wide overhanging eaves with stylized fascia, plate glass windows, and belt courses. The report states that the building appears to be eligible for listing on the California Register of Historical Resources under Criterion 3, in that it embodies characteristics of the New Formalism architectural style. In addition, the report identified the building as an eligible City Landmark under two criteria. First, the building is a representative example of New Formalism architecture and second, the original design has been retained without significant alteration. As such, the building is considered a historical resource under the California Environmental Quality Act, and the Environmental Impact Report (EIR) for the project has identified its demolition as having a significant impact.

The project was heard at the Historic Landmarks Commission on November 6, 2024, as part of the preparation and notice of availability of the Environmental Impact Report. Members of the Historic Landmarks Commission expressed concerns about the demolition of an eligible City Landmark and recommended that the developer explore adaptive reuse of the existing building in the project, a reduction in the project density, or an increase in the height of the new building to preserve the existing building and maintain the project density.

Pursuant to San José Municipal Code (SJMC) Section 21.07.020.B, for projects for which the EIR identifies a significant environmental effect, the Planning Commission shall make a recommendation to the City Council concerning certification of the final EIR.

ANALYSIS
The proposed Planned Development Permit is analyzed with respect to conformance with:

1. Envision San José 2040 General Plan

2. San José Municipal Code

3. Density Bonus Law

4. Citywide Design Standards

5. Permit Findings

6. California Environmental Quality Act (CEQA)

Envision San José 2040 General Plan Conformance
As shown in the General Plan Land Use Designation Map (Exhibit C), the proposed project site has an Envision San José 2040 General Plan Land Use/Transportation Diagram designation of Transit Residential.

File No. H23-007 & ER23-075

Density: 50-250 dwelling units/acre (DU/AC)
Transit Residential is the primary designation for new high-density, mixed-use residential development sites located close to transit, jobs, amenities, and services. The minimum required density for residential/commercial mixed-use development is 50 DU/AC with a maximum FAR of 12.0. The allowable density for this designation is further defined within the applicable Zoning Ordinance designation and may also be addressed within an Urban Village Plan or other policy document.

Analysis: The proposal for a 118-unit multifamily development is consistent with the Transit Residential land use designation, which supports high-density, residential uses. The proposed density of 244 DU/AC and proposed FAR of 4.7 are consistent with density range of the land use designation.

In addition, the project is consistent with the following General Plan major strategy, goals, and policies:
• Major Strategy #3 – Focused Growth: This major strategy of the General plan encourages growth in areas that will support the city’ sustainability and contribute to attractive, pedestrian-friendly neighborhoods.

Analysis: The project site is located one block from the Downtown growth area boundary, is within walking distance of public and private amenities available in the area, including two public parks and other public services, bus and light rail lines, shopping, restaurants, and entertainment venues.

The project will provide additional housing options in a pedestrian-friendly area and includes design elements aimed at improving the public realm, such as a highly transparent ground floor, pedestrian lighting, landscaping, and bicycle parking.
• Goal H-1: Provide housing throughout our City in a range of residential densities, especially at higher densities, and product types, including rental and for-sale housing, to address the needs of an economically, demographically, and culturally diverse population.

Analysis: The project will provide 118 rental units at a density of 244 DU/AC near downtown San José. Six of the units will be affordable to very-low-income households and the remaining units will be offered at market rate, serving households with diverse income levels and consistent with the policy.
• Policy H-1.2: Facilitate the provision of housing sites and structures across location, type, price, and status as rental or ownership that respond to the needs of all economic and demographic segments of the community including seniors, families, the homeless and individuals with special needs.

Analysis: As stated above, the project will provide units for very-low-income households, which may include formerly homeless individuals, seniors living on fixed incomes, and families. The site is located within walking distance of public and private amenities, including transit, parks, libraries, museums, restaurants, and shopping, which is consistent with the policy. • Policy H-1.9: Facilitate the development, preservation, and rehabilitation of housing to meet San José’s fair share of the County’s and region’s housing needs.

Analysis: The project site will add 118 housing units to the city’s housing stock and help to meet the regional need for housing, consistent with the policy.
• Policy H-2.1: Facilitate the production of extremely low-, very low-, low-, and moderate-income housing by maximizing use of appropriate policies and financial resources at the federal, state, and local levels; and various other programs.

File No. H23-007 & ER23-075

Analysis: The project will utilize the State Density Bonus Law to provide six units, or 5% of the total units, as affordable to very-low-income households. Under the law, the project is eligible for development concessions and waivers that will enable the applicant to provide affordable units, consistent with the policy.
• Policy LU-10.3: Develop residentially- and mixed-use-designated lands adjacent to major transit facilities at high densities to reduce motor vehicle travel by encouraging the use of public transit.

Analysis: The project will provide 118 residential units at a density of 244 DU/AC, within ¼ mile of multiple bus lines and the Japantown/Ayer and St. James light rail stations, consistent with the policy.
• Policy LU-13.2: Preserve candidate or designated landmark buildings, structures and historic objects, with first priority given to preserving and rehabilitating them for their historic use, second to preserving and rehabilitating them for a new use, or third to rehabilitation and relocation on- site. If the City concurs that no other option is feasible, candidate or designated landmark structures should be rehabilitated and relocated to a new site in an appropriate setting.

Analysis: The project includes the demolition of a two-story office building that is representative of New Formalism architectural style and is eligible for City Landmark status. The project is a 118-unit residential building that does not include office uses, so preserving the building for its historic use is not feasible. Conversion of the existing building to residential use would reduce the number of units that could be constructed on the site and render the project financially infeasible, as achieving the planned number of units would require increasing the height of the new building and incur additional construction costs.

Pursuant to the Mitigation Monitoring and Reporting Plan for the project EIR, to mitigate the impact on the building the applicant will be required to advertise the building for relocation for at least 60 days prior to issuance of a demolition or grading permit. Other mitigation measures include submittal of Historic American Building Survey documentation and three-dimensional laser scans of the building and development of a commemorative interpretive display or exhibit to be approved by the Department of Planning, Building, and Code Enforcement. • Policy LU-13.8: Require that new development, alterations, and rehabilitation/remodels adjacent to a designated or candidate landmark or Historic District be designed to be sensitive to its character.

Analysis: The project site is located approximately 80 feet south of the Borcher Brothers Building at 396 North 1st Street, City Landmark #111, which has a brick exterior. All elevations of the new multifamily building will incorporate brick siding, including a significant portion of the North 1st Street and North 2nd Street elevations (approximately 51% and 40%, respectively). In response to a recommendation from a representative of the Preservation Action Council of San José at the Historic Landmarks Commission, the project will continue the brick siding from upper floors to the pedestrian level on the North 1st Street elevation.
• Policy CD-1.8: Create an attractive street presence with pedestrian-scaled building and landscaping elements that provide an engaging, safe, and diverse walking environment. Encourage compact, urban design, including use of smaller building footprints, to promote pedestrian activity throughout the City.

File No. H23-007 & ER23-075

Analysis: The project consists of a single building extending along Bassett Street from North 1st Street to North 2nd Street, providing 118 residential units on an approximately ½-acre lot. Façade material and color changes, recessed entries with large windows at the pedestrian level, planter boxes, and pedestrian lighting will provide a safe and visually interesting environment for pedestrians and cyclists, consistent with the requirement. • Policy CD-1.11: To create a more pleasing pedestrian-oriented environment for new building frontages, include design elements with a human scale, varied and articulated facades using a variety of materials, and entries oriented to public sidewalks or pedestrian pathways. Provide windows or entries along sidewalks and pathways; avoid blank walls that do not enhance the pedestrian experience. Encourage inviting, transparent façades for ground-floor commercial spaces that attract customers by revealing active uses and merchandise displays.

Analysis: The building is oriented toward its longest street frontage, Bassett Street, and includes design elements to enhance the pedestrian environment. These include large windows at the ground floor on all facades to provide sightlines into building lobbies, amenity spaces, and offices.

Articulation is provided by multiple recessed entryways, and color and material changes extend to the ground floor. Perforated metal panels and landscaping in planters will screen the parking garage from view. The project is consistent with the policy.

San José Municipal Code Conformance
The Project site is located within the TR Transit Residential Zoning District, which is intended to implement the Transit Residential General Plan land use designation. The project’s consistency with the development standards of the TR Zoning District is analyzed below. a. Land Use. Pursuant to SJMC Section 20.55.203, multiple dwelling projects are permitted in the TR Zoning District. The project requires a Site Development Permit for building construction pursuant to Section SJMC Section 20.100.610.
b. Development Standards. The project is subject to the development standards of the TR Zoning District, as shown in the table below.

Development Standard Required Provided
Lot size (minimum) 6,000 square feet 21,085 square feet Height (maximum) 270 feet 82 feet 3 inches
Front setback – North 1st and
North 2nd Streets (maximum)
10 feet North 1st Street: 2 feet
North 2nd Street: 1 foot 8 inches
Side setback (maximum) 10 feet Northern property line: 2 feet Bassett Street: 6 feet
Rear setback (minimum) 10 feet Not applicable
Analysis: The subject site is a corner lot with frontage on three streets: North 1st Street, Bassett Street, and North 2nd Street. Per SJMC Section 20.200.700, the front lot line of a corner lot is defined as the narrower lot line abutting a public or private right-of-way. The North 1st Street and North 2nd Street frontages are both 98 feet while the Bassett Street frontage is approximately 287 File No. H23-007 & ER23-075

feet. Therefore, both the North 1st Street and North 2nd Street frontages are defined as front lot lines, while the Bassett Street frontage and the northerly site boundary are side lot lines. The site does not have a rear lot line, per the Code definition. The project is consistent with the lot size, height, and setback standards of the TR Zoning District. c. Common and Private Open Space.
• Common Open Space. Pursuant to SJMC Section 20.55.102, residential projects in the TR Zoning District with 15 units or more are required to provide both common space and private open space. However, projects located within ¼-mile walking distance of an existing public space are exempt from providing common open space.

Analysis: The project is located approximately 300 feet from Ryland Park and ¼ mile from St.

James Park, and is therefore exempt from the common open space requirement. The project includes common open space , however, including a fitness center on the second floor, a clubhouse, and a roof deck on the seventh floor.
• Private Open Space. Pursuant to SJMC Section 20.55.102.C.2 , 100% residential projects must provide at least 40 square feet of private open space for studios and one -bedroom units and 60 square feet of private open space for units with two or more bedrooms . At least 50% of all dwelling units shall have direct access to private open space in the form of a balcony, patio, o r roof terrace. Common open space may be substituted for up to 50% of the private open space requirement, but at least 50% of the units must have private open space.

Analysis: The project provides private open space for 21 residential units (18% of the total) , in lieu of the 59 units otherwise required. Eleven units have balconies with an area of 50 square feet each, and 10 units have private patios on the second floor with areas ranging from approximately 5 9 square feet to 15 6 square feet. The applicant has requested and is eligible for a Density Bonus concession for a reduction in the number of units with private open space (see the Density Bonus Law Conformance section below) . d. Parking.
• Vehicle Parking. Pursuant to SJMC Chapter 20.90, the project is not required to provide vehicle parking spaces, but as a Home End Use with 26 or more units, it is required to provide transportation demand management (TDM) measures that achieve a 25-point target.

Analysis: Although the project does not require the provision of vehicle parking spaces, 74 spaces will be provided in automated stackers. The project will provide the following TDM measures to achieve the required 25-point target: right-sized parking; bicycle parking facilities; a bike share station; education, marketing, and outreach; and unbundling the parking cost from the apartment lease cost. The project conditions require the Department of Transportation approval of the project’s TDM Plan and a signed covenant and agreement to maintain the TDM Plan for the life of the project.
• Bicycle parking: Pursuant to SJMC Section 20.90.060, one bicycle parking space is required for every four living units, resulting in a total requirement of 30 onsite spaces (60% are required to be long-term spaces). Pursuant to SJMC Section 20.90.240, the onsite requirement for short- term bicycle parking spaces may be reduced or eliminated when the project provides short- term bicycle parking facilities in the public right-of-way within 200 feet of a publicly accessible File No. H23-007 & ER23-075

building entrance in conformance with an encroachment permit approved by the Director of Public Works and the facilities provided are reasonably convenient and accessible to visitors to the subject site.

Analysis: The project is consistent with the requirement, providing a total of 30 bicycle parking spaces, including 18 long-term spaces (60%) in a secure room within the building and 12 short- term bicycle spaces in the parkway along the subject site frontage. Consistent with SJMC Section

20.90.240, the short-term bicycle parking will be located within 200 feet of a building entrance and will, therefore be convenient and accessible to site visitors. Per Condition 8, prior to issuance of a Building permit for the project, the Permittee will be required to submit an application for an Encroachment Permit for the installation of bicycle racks within the public right-of-way from the Department of Public Works.

In addition, pursuant to SJMC Section 20.90.060, Section 20.90.190, and Section 20.90.195, bicycle parking spaces are required to be consistent with the following design standards:
o All bicycle parking facilities within vehicle parking areas shall be separated by a curb or other physical barrier to protect bicycles from damage by automobiles or other moving vehicles.
o Short-term bicycle parking spaces must be located at least three feet from any wall, fence, or other structure.
o When multiple short-term bicycle parking facilities are installed together in sequence, they shall be installed at least three feet apart and located in a configuration that provides spaces for parked bicycles to be aligned parallel to each other. o The minimum dimensions for each bicycle parking space is two feet wide, six feet long, and four feet high.
o There must be at least five feet of clear space to access all bicycle parking spaces and allow room for bicycle maneuvering.

Analysis: The short-term bicycle parking spaces are accessible from the sidewalk, and long- term spaces are provided inside the bike storage room. The bicycle parking space dimensions shown on the plans are consistent with the requirements. • Two-wheeled Motorized Vehicle Parking: Pursuant to SJMC Section 20.90.350, the project is required to provide two-wheeled motorized vehicle parking equivalent to 2.5% of the number of vehicle spaces provided.

Analysis: The project provides two parking spaces for two-wheeled motorized vehicles, which represents 2.5% of the 74 vehicle spaces provided and is consistent with the requirement. e. Transportation Demand Management.

Pursuant to SJMC Section 20.90.900, the project is a Home-End Use with more than 26 residential units and is required to provide transportation demand management (TDM) measures.

Analysis: The applicant’s TDM Plan, which includes minimizing off-street vehicle parking spaces, providing bike share stations, unbundling parking costs, and implementing education, marketing, and outreach programs, has been approved by the Department of Transportation.

File No. H23-007 & ER23-075

Density Bonus Law Conformance
The project will provide six dwelling units, or 5% of the 118 units, that are affordable to very-low- income households. Pursuant to California Government Code § 65915, the project is therefore eligible for a 20% density bonus, or up to 300 DU/AC. The project proposes 118 units at a density of 244 DU/AC.

The state Density Bonus law also grants the project one development concession and unlimited waivers of development standards.

Concession
A concession may be granted if the applicant can demonstrate that it would result in an identifiable and actual cost reduction. The project applicant has requested the following concession:
a. The development standard for 100% residential projects pursuant to SJMC Section 20.55.102.C.2 requires that at least 50% of the units have direct access to private open space. The applicant has requested to reduce the requirement to provide private open space for 21 units, instead of the 59 units otherwise required. As described in the letter received from law firm Sheppard, Mullin, Richter & Hampton, LLP on behalf of the applicant, and dated November 17, 2023, the estimated cost of providing private open space is $15,500 per unit and the requested concession would result in a total project cost savings of $589,000 ($15,500 x 38 units). Without the requested concession, the project is not financially viable and cannot be constructed.

As a result of the decreased costs, the project would be viable and can be constructed. Cost savings will facilitate affordability of the units. Therefore, the incentive request to reduce the required amount of private open space results in actual and identifiable cost reductions and can be granted.

Waivers
A waiver may be granted if the applicant can demonstrate that consistency with the development or design requirement would physically preclude the project as designed. The project applicant has requested the following waivers:
a. Standard 1 of Section 3.1.1 of the Citywide Design Standards requires that the building façade be stepped back starting at a height of 65 feet on Bassett Street and 80 feet on North 2nd Street.

Analysis: The height of the building is 82 feet three inches on all elevations. The applicant has requested and is eligible for a waiver to eliminate the required stepbacks on Bassett Street and North 2nd Street and has provided an exhibit to demonstrate that consistency with the standard would reduce the floor area of nine units located on the seventh floor of the building.

b. Standard 9 of Section 2.3.8 of the Citywide Design Standards requires a five-foot landscape buffer along the northerly property line.

Analysis: The applicant has requested and been granted a waiver to provide a two-foot setback along the northerly property line, which precludes the provision of a five-foot-wide landscape buffer.

The applicant has provided an exhibit to demonstrate that consistency with this standard would result in the loss of 20 units.

File No. H23-007 & ER23-075

c. Standard 3 of Section 2.2.3 of the Citywide Design Standards requires screening for any equipment located outside the building envelope within 30 feet of the public right-of-way.

Analysis: The project’s two transformers will be located outside the building envelope, adjacent to the public right-of-way on North 2nd Street. The applicant has requested and is eligible for a waiver to eliminate the screening requirement. The applicant has provided an exhibit demonstrating that because PG&E requires clear space around the transformers, inclusion of screening would require shifting the transformers five feet to the west. This would in turn require moving the building wall, which would result in a loss of residential units on that side of the building.

Citywide Design Standards and Guidelines Conformance
The project conforms to the following relevant standards of the Citywide Design Standards and Guidelines:

Section 2.1.2, Relationship to Transit
• Standard 1: When located within 500 feet of a Frequent Network transit stop, locate the primary building entrance at the building façade closest to the transit stop.

Analysis: The primary building entrance is located on Bassett Street, which does not have a Frequent Network transit stop. While Frequent Transit stops are located on North 1st Street and North 2nd Street (Valley Transit Authority bus route 72), the Bassett Street frontage of the site is closer to the bus stops (both of which are located south of the subject site) than the building’s frontage on North 1st and North 2nd Streets. The project is consistent with the standard. • Standard 2: Do not locate driveways directly adjacent to bus stops, rail stations, and light rail corridors, unless there are no other streets adjoining the property.

Analysis: The entrance to the parking garage is located mid-block on Bassett Street and is not directly adjacent to a bus stop or light rail corridor, consistent with the standard. • Standard 3: Do not place at-grade vehicle access to development sites across light rail tracks or within 60 feet of an active rail corridor unless the only access to the site from a public street is across the light rail tracks.

Analysis: The driveway entrance is located approximately 120 feet east of the light rail tracks on North 1st Street, consistent with the standard.

Section 2.2.1, Pedestrian and Bicycle Access Location
• Standard 3: Locate primary building entrances for residential buildings on a development site so that they are within 15 feet of a public sidewalk or publicly accessible open space, uninterrupted by parking lots or vehicular circulation areas.

Analysis: The westerly lobby entrance, which is the primary building entrance, is within 11 feet of the public sidewalk, consistent with the standard.
• Standard 4: Provide direct access for all lobbies, public open spaces, and paseos from the street or publicly accessible pedestrian walkways.

Analysis: The primary lobby entrance is directly accessible from the sidewalk along Bassett Street, consistent with the requirement.

File No. H23-007 & ER23-075

Section 2.2.2, Driveways and Vehicle Drop-offs
• Standard 1: Locate curb cuts at least 20 feet away from publicly accessible open spaces and 50 feet away from pedestrian and bicycle entrances, except for sites with less than 60 feet of street frontage.

Analysis: The curb cut for the parking garage entrance on Bassett Street is located approximately 60 feet from the westerly (primary) pedestrian and bicycle entrance and approximately 95 feet from the easterly pedestrian and bicycle entrance, consistent with the standard. • Standard 3: For corner parcels or properties with two intersecting streets, provide the vehicular and driveway access on the secondary street or the street with lesser, pedestrian, bicycle, and vehicular circulation.

Analysis: The parking garage entrance is located on Bassett Street, which is a secondary street with less pedestrian, bicycle, and vehicular circulation than North 1st Street and North 2nd Street.

Section 2.2.3, Services and Utilities Access and Location • Standard 1: If the Fire Department or any utility companies require access to onsite facilities from the street, locate services and utilities such that they occupy less than 25% of ground-floor, street- facing building façades.

Analysis: The project’s ground-floor, street-facing building facades total approximately 398 feet.

The utility rooms on the ground floor facing the street are the electrical room and trash room along the North 2nd Street façade. The length of those rooms is 45.5 feet, which is 11% of the total ground floor façade length, consistent with the standard.
• Standard 3: Screen all services and utilities located outside the building envelope that are within 30 feet of a public right-of-way.

Analysis: As discussed in the Density Bonus Law Consistency section above, the applicant has requested and received a waiver of this standard for the transformers located outside the building envelope. Providing screening would require moving the location of the transformers, which would physically preclude the provision of the residential units as designed.

Section 2.3.1, Building Placement
• Standard 1: To create a continuous streetwall, place at least 75% of the ground floor primary street-facing façades of buildings with the primary residential use within five feet of the setback or easement line (whichever is more restrictive).

Analysis: The primary streets adjoining the project site are North 1st Street and North 2nd Street, where the maximum setback allowed is 10 feet. The building is set back two feet from the property line on North 1st Street and one foot eight inches from the property line on North 2nd Street, consistent with the standard.
• Standard 2: To create a continuous streetwall, place at least 60% of the ground floor secondary street-facing façades of buildings with the primary residential use within five feet of the setback or easement line (whichever is more restrictive).

File No. H23-007 & ER23-075

Analysis: Bassett Street is a secondary street, and the setback required is a maximum of 10 feet. The Bassett Street façade has an 11-foot setback, which is within one foot of the maximum setback line, consistent with the standard.

Section 2.3.5, Bicycle Parking Placement
• Standard 1: Locate at least 40% of the required bicycle parking on the ground floor with direct physical access to an elevator or building exit.

Analysis: The required long-term bicycle parking (60% of required bicycle parking) is located in a storage room on the ground floor with direct access to an elevator in the secondary lobby, consistent with the standard.
• Standard 2: Place bicycle parking so that bicyclists do not have to cross vehicular parking or drive aisles to enter the building.

Analysis: The long-term bicycle parking is located within a storage room on the ground floor with direct entrances from the sidewalk and the short-term bicycle parking is located on the sidewalk on Bassett Street. The project is consistent with the standard.

Section 2.3.7, Site Lighting
• Standard 1: Orient all site lighting directly downwards to prevent light pollution and excess glare in the public realm.

Analysis: According to the lighting specifications included in the plans, exterior lighting is oriented downwards, consistent with the standard.
• Standard 3: In General Plan Residential land use designations, the height of a lighting fixture must be up to 12 feet when the distance from the fixture to the adjacent residential property line is less than twice the height of the fixture or up to 25 feet when the distance of the fixture from the adjacent property line is more than twice the height of the fixture.

Analysis: Exterior lights on all building elevations include soffit lights and wall lights. The soffit lights have a height of 15 feet and the wall lights have a height of eight feet. The adjacent residential property line on North 1st Street is 100 feet from the subject site and the adjacent residential property line on North 2nd Street is 80 feet from the subject site. Both distances exceed the distance requirement, consistent with the standard.
• Standard 6: All site lighting fixtures must be fully shielded to prevent light from shining upward and light spillage and glare that can be seen from above.

Analysis: According to the lighting specifications included in the plans, exterior lighting is fully shielded, consistent with the standard.
• Standard 7: Keep the maximum color temperature for outdoor lighting below 2700 Kelvin except for outdoor decorative lighting from November 15 to January 15.

Analysis: The project is consistent with the standard, as noted on the project lighting plan.

File No. H23-007 & ER23-075

Section 2.3.8, Landscaping and Stormwater Management
• Standard 9: Provide at least a five-foot-wide landscape buffer at the side and rear property lines and a five-foot-tall solid wall/concrete fence at the shared property lines where Commercial or Mixed-Use General Plan land use designations abut Residential General Plan land use designations.

Analysis: The subject site has a General Plan land use designation of Transit Residential, which is a mixed-use designation. The site to the north has a designation of Urban Residential, which allows residential uses, and therefore, the project is required to provide the landscape buffer along the northerly property line. The applicant has requested and been granted a waiver, pursuant to the state Density Bonus Law, to provide a two-foot setback along the northerly property line.

Section 3.1.1, Massing Relationship to Context
• Standard 1: Outside General Plan growth areas, provide building stepbacks fronting rear shared property lines within a stepback plane of 60 degrees from horizontal and fronting public rights-of- way within a stepback plane of 75 degrees from horizontal.

Analysis: The required stepbacks are as follows:
o North elevation (adjacent to rail right-of-way property): The adjoining property is within the Urban Residential Zoning District, which allows a maximum height of 135 feet. The project height is 82 feet three inches, less than the maximum height allowed for the adjoining property, and stepbacks are not required.
o East elevation (North 2nd Street): The maximum height allowed for the site located across North 2nd Street is 50 feet and the street width is 80 feet. Therefore, stepbacks on the northeast elevation are required starting at 80 feet in height.
o South elevation (Bassett Street): The maximum height allowed for the site across Bassett Street is 65 feet and the street width is 52 feet. Therefore, stepbacks on the southeast elevation are required starting at 65 feet.
o West elevation: The property across North 1st Street is within the Transit Residential Zoning District, which allows a maximum height of 270 feet. The project height is 82 feet 3 inches, less than the adjoining property height maximum, and stepbacks are not required.

The applicant has been granted a waiver to eliminate the required stepbacks on North 2nd Street and Bassett Street.

Section 3.1.2, Form, Proportion, and Scale
• Standard 3: For streetwalls more than 200 feet in length, provide at least one recess or projection in the facade that is at least 15 feet wide and 10 feet deep for residential developments.

Analysis: The streetwall on Bassett Street is approximately 269 feet long. The building has a recess that is 20 feet 11 inches wide and 10 feet deep, consistent with the standard.

Section 3.1.3, Historic Adjacency
• Standard 3: For projects located within 100 feet of a City Landmark structure, use historic materials that match nearby historic buildings on at least 25 percent of a street, paseo or public open space facing façade and on 10 percent of other façades that are visible from the public realm.

File No. H23-007 & ER23-075

Analysis: The project site is located approximately 80 feet south of the Borcher Brothers Building, City Landmark #111, at 396 North 1st Street, which has a brick exterior. All elevations of the new multifamily building will incorporate brick siding, particularly the elevations facing North 1st Street and North 2nd Street. The percentage of brick and stucco on each elevation is shown below:
o Bassett Street: 7.6% brick, 50.1% stucco (remainder: other siding and glazing). o North 1st Street: 37.3% brick, 23.4% stucco.
o North 2nd Street: 39.8% brick, 52.6% stucco.
o North elevation (interior, not visible from the public realm): 10% brick.

Based on these percentages, the project is consistent with the standard.

Section 3.2.1: Pedestrian and Bicycle Entrance Design
• Standard 1: Provide at least one building entrance along a public street or active pedestrian area for all buildings with multiple access points, all buildings with over 200 feet of frontage along streets and public open spaces, and all residential developments with over 50 units.

Analysis: The project has two building entrances on Bassett Street, which is consistent with the standard.
• Standard 2: The primary building entrance must be directly accessible from the public realm and meet the requirements of the Americans with Disabilities Act (ADA).

Analysis: The primary building entrance on Bassett Street is directly accessible from the sidewalk, and there are no steps or ramps to reach the entrance, which is consistent with the standard. • Standard 3: Recess all building entrances that open toward a sidewalk by a minimum of three feet to protect pedestrians. If the doors open inwards, no recess is required, but provide a projecting or arching cover at least three feet deep for protection from weather.

Analysis: The primary building entrance is recessed 11 feet from the sidewalk, and the secondary entrance is recessed approximately 10 feet, which is consistent with the standard.

Section 3.2.2: Vehicular Entrances and Driveways
• Standard 1: Driveways must be less than 25% of street frontage for sites that are more than 100 feet wide at the street and not more than 25 feet for sites that are less than 100 feet wide at the street.

Analysis: The parking garage width is 26 feet, which is approximately 10% of the Bassett Street frontage, consistent with the standard.
• Standard 2: Driveways for parking facilities must be a maximum width of 52 feet cumulatively for each street frontage.

Analysis: The width of the single driveway into the parking garage is 26 feet, consistent with the standard.

Section 3.2.3: Services and Utilities Entrances and Design • Standard 1: Screen solid waste, utilities, and service areas from residential and commercial uses, and on-site and off-site views to limit visual impact on the public realm.

File No. H23-007 & ER23-075

Analysis: As discussed in the Density Bonus Law Consistency section above, the applicant has requested and received a waiver of this standard as to the transformer on the North 2nd Street side of the Project, which would physically preclude the provision of the residential units as designed.

The trash room and utility and service rooms are located inside the building envelope, consistent with the standard.

Section 3.3.1: Façade Design and Articulation
• Standard 1: Articulate all building façades facing a street or public open space for at least 80 percent of each façade length. Articulate all other building façades for at least 60 percent of each façade length.

Analysis: The project is consistent with the standard. On the Bassett Street façade, there are eight plane changes and seven material or color changes across the length of the façade, and two window spacing patterns (one on the second floor and another on floors three through seven).

There is also a varied pattern of occupied balconies on alternating columns of windows. The North 1st Street and North 2nd Street facades have multiple material or color changes (five and four, respectively) and rhythmic patterns of windows. The northern elevation, like the Bassett Street elevation, has multiple material and color changes across its entire length. • Standard 2: Occupied decks and balconies must be at least six feet wide and four feet deep to encourage outdoor seating.

Analysis: Although there is some variation in size, all balconies and patios are at least five feet deep and 10 feet wide, consistent with the standard.

Section 3.3.3: Decks and Balconies
• Standard 1: Private balconies may not extend more than 10 feet from the building façade.

Analysis: The balconies extend five feet from the building façade, consistent with the standard. • Standard 2: Occupied decks and balconies must be at least six feet wide and four feet deep to encourage outdoor seating.

Analysis: As discussed in Section 3.3.1, all the balconies and patios are at least five feet deep and 10 feet wide.
• Standard 3: Façade elements and unoccupied spaces such as Juliet balconies must be a minimum of three feet wide and 12 inches deep.

Analysis: Based on the floor plans, the Juliet balconies on floors three through seven are at least seven feet three inches wide and 12 inches deep, consistent with the standard. • Standard 5: When balconies are provided, at least 25% of residential units facing secondary streets must have balconies.

Analysis: Fifty-seven of the units face Bassett Street, a secondary street, but only 11 have balconies, which is less than 25% of the units. The applicant is eligible for a Density Bonus incentive for a reduction in the number of units providing private open space, as discussed in the Density Bonus Law Conformance section above.

File No. H23-007 & ER23-075

Section 3.3.4: Awnings, Sunshades, and Screens
• Standard 1: When sunshades, awnings, recessed windows, screens or any other shading devices are provided on south and west building facades, design them such that they provide shade on at least 30 percent of each exposed exterior window surface on those building facades.

Analysis: According to the shading calculations provided for the two types of windows with sunshades, a minimum of 32.6% of each window will be shaded, consistent with the standard.

Section 3.3.5: Parking Garage Design
• Standard 1: Line at least 50% of the total parking structure façade length facing a primary street with a minimum 20-foot-deep active frontage or residential or commercial uses.

Analysis: North 1st Street and North 2nd Street are primary streets. On North 1st Street, approximately 81% of the ground-floor is occupied by the leasing office, mail room, amenities room, and service areas that are consistent with the standard. On North 2nd Street, the entire ground floor frontage consists of a bicycle storage room and services and utility rooms with a depth of at least 20 feet, consistent with the standard.

Section 3.3.7: Materials and Color
• Standard 2: Material transitions along any façade must only occur on the inside corner of plane change.

Analysis: All material transitions occur on the inside corner of plane changes, consistent with the standard.
• Standard 3: For buildings taller than four stories, limit the use of stucco to a maximum of 60 percent of any façade that faces a street, open space, or paseo in General Plan growth areas.

Analysis: The approximate percentages of stucco on the street-facing elevations are the following:

North 1st Street, 40%; North 2nd Street, 53%, and Bassett Street, 60%. The project is consistent with the standard.
• Standard 4: For buildings taller than four stories, do not provide unbroken multi-story sections of the same material, texture, or color for more than 150 feet of façade length and more than 2/3 of the number of floors in height.

Analysis: The project elevations include variation in materials, colors and textures, such that there are no unbroken multi-story sections of the same material, texture, or color for more than 150 feet of façade length and more than 2/3 of the number of floors in height, consistent with the standard.

Section 3.3.8: Architectural Lighting
• Standard 1: Orient at least 90 percent of exterior lighting fixtures downward.

Analysis: All architectural lighting is oriented downward, consistent with the standard. • Standard 2: Provide pedestrian-scale lighting to illuminate the ground floor building façades and an adjacent four-foot-wide zone with lighting fixtures that are placed every 40 feet or less for all building façades to illuminate the sidewalk along primary and secondary streets.

File No. H23-007 & ER23-075

Analysis: Pedestrian scale lighting fixtures are located approximately every nine to 10 feet on the Bassett Street elevation. On the North 1st Street and North 2nd Street elevations, the distance between lighting fixtures is a maximum of 29 feet and 35 feet, respectively. The project is consistent with the standard.

Permit Findings
Site Development Permit Findings
To make the Site Development Permit findings pursuant to San José Municipal Code Section

20.100.630, and recommend approval to the City Council, the Planning Commission must determine that:

1. The Site Development Permit, as approved, is consistent with and will further the policies of the General Plan, applicable specific plans, and area development policies.

Analysis: As discussed in the General Plan Conformance section above, the project is consistent with the density and floor-area ratio required for the Transit Residential General Plan land use designation. The project is also consistent with General Plan strategies, goals, and policies for focused growth and housing development and affordability. The subject site is located within one block of the Downtown growth area boundary, giving residents access to the area’s public and private amenities, including parks, transit, libraries, and shopping. The project will contribute 118 units to the City’s housing stock and six of the units will be affordable for very-low-income households, which may include formerly homeless individuals, people with disabilities, and families.

2. The Site Development Permit , as approved, conforms with the Zoning Code and all other provisions of the San José Municipal Code applicab le to the project .

Analysis: As discussed in the San José Municipal Code Conformance section above, the subject site is a corner lot with two front lot lines and two side lot lines, pursuant to the definitions contained in the Municipal Code. The project is consistent with the height and setback standards of the Transit Residential Zoning District. The project is not required to provide common open space because it is located within ¼ mile of two public parks and has requested and is eligible for a concession, under the state Density Bonus Law, to provide private open space to 21 of the 118 units, in lieu of the 59 units otherwise required. The project will provide 74 vehicle parking spaces, 30 bicycle parking spaces, and two spaces for two-wheeled motorized vehicles, and a TDM Plan with measures to reduce parking demand, consistent with the Municipal Code.

3. The Site Development Permit, as approved, is consistent with applicable City Council policies, or counterbalancing co nsiderations justify the inconsistency .

Analysis: Pursuant to the City Council Policy on the Preservation of Historic Landmarks, a historic evaluation report for the existing building proposed for demolition was prepared and the project was referred to the Historic Landmarks Commission on November 6, 2024 (additional information is provided in the Public Outreach section below).

Staff also implemented City Council Policy 6-30: Public Outreach Policy to inform the public of the project. Onsite signs have been posted on the project frontage since August 4, 2023. A formally noticed Community Meeting was held on September 11, 2023, to introduce the project to the community (additional information is provided in the Public Outreach section below). A notice of the public hearing was distributed to the owners and tenants of all properties located within 1,000 feet File No. H23-007 & ER23-075

of the project site and posted on the City website. Additionally, a notice of the public hearing was posted in a newspaper of record (San José Post Record) on January 22, 2025. Staff has also been available to respond to questions from the public.

4. The interrelationship between the orientation, location, and elevations of proposed buildings and structures and other uses on -site are mutually compatible and aesthetically harmoniou s.

Analysis: The project consists of a single seven-story building with 118 residential units above a podium garage with 74 stacked parking spaces. The building is oriented toward Bassett Street, with two entry lobbies, a leasing office, a bike storage room accessible from the sidewalk, and an ingress/egress driveway to the interior garage. The garage is screened from view by metal mesh panels and raised planter boxes located along the building façade. Service and utility rooms (trash, electrical, mail, etc.) are located within the building, along the shorter facades on North 1st Street and North 2nd Street or at the rear of the building, to reduce their visibility.

Amenity spaces for the residents include a 692-square-foot fitness room on the second floor and an 811-square-foot clubhouse with a roof deck on the seventh floor. Twenty-one of the units have private open space, including 11 balconies facing Bassett Street and 10 second-floor patios facing the rail right-of-way at the rear of the building.

The building’s colors and materials create a cohesive architectural expression. The bases of the building’s street-facing elevations are clad in dark gray stucco and composite siding. On the Bassett Street elevation, upper floors are distinguished with white stucco and vertical blue stucco accent sections, as well as building recesses, to articulate the approximately 270-foot-long facade. Brick veneer on the North 1st Street and North 2nd Street elevations wraps around the street-facing corners, referencing the brick of nearby historic buildings and anchoring the building on the site.

5. The environmental impacts of the project, includin g but not limited to noise, vibration, dust, drainage, erosion, stormwater runoff, and odor which, even if insignificant for purposes of the California Environmental Quality Act (CEQA), will not have an unacceptable negative effect on adjacent property or p roperties.

Analysis: Environmental impacts related to noise, vibration, dust, drainage, erosion, storm water runoff, and odor would be temporary and will only occur during construction. The project is required to conform with the City’s Post-Construction Urban Runoff Management Policy (Policy 6-29), requiring implementation of Best Management Practices (BMPs) including site design measures, source controls, and numerically sized Low Impact Development (LID) stormwater treatment measures to minimize stormwater pollutant discharge. The project also includes standard environmental permit conditions to reduce and mitigate impacts regarding air quality, dust and emissions control, water quality, and noise, including designating a construction disturbance coordinator to address concerns related to construction. Additionally, the project is required to adhere to the Mitigation Monitoring and Reporting Program (MMRP) prepared for the project in association with the project’s Environmental Impact Report (additional information on the Environmental Impact Report is provided in the California Environmental Quality Act section below).

Although there will be temporary impacts to the surrounding neighborhood, ongoing operation of the project would not have an unacceptable environmental impact on adjacent properties.

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6. Landscaping, irrigation systems, walls and fences, features to conceal outdoor activities, exterior heating, ventilating, plumbing, utility and trash facilities are sufficient to maintain or upgrade the appearance of the neighborhood.

Analysis: The building will replace a two -story office building and a surface parking lot, improving the appearance of the neighborhood. Land scaping will be provided on the ground floor in planters to screen the parking garage from view and enhance the pedestrian environment , along with planters on the second -floor patio and the seventh -floor roof deck. Metal mesh screens will also help to minimize the visibility of the parking garage from the public realm. Utility and trash rooms will be located inside the building envelope, except for two transformers at the rear corner of the building on North 2 nd Street.

7. Traffic access, pedestrian access, and parking are adequate.

Analysis: Vehicular access to the ground-floor parking garage is provided from a single 26-foot-wide driveway on Bassett Street. To facilitate the construction of the multifamily residential building, the project is conditioned to construct public improvements, including a 12-foot-wide sidewalk along North 1st Street, a 15-foot-wide sidewalk along North 2nd Street, and a 10-foot-wide sidewalk along Bassett Street. The project is served by multiple transit lines including VTA Bus Routes 72 and 73 and the Blue and Green light rail lines, with stops located within ¼ mile. The project provides all required vehicle, bicycle, and two-wheeled motorized vehicle spaces in conformance with Chapter

20.90 of the Zoning Code.

Demolition Permit Findings
Chapter 20.80 of the Municipal Code establishes evaluation criteria for the issuance of a permit to allow for demolition. These criteria are made for the project based on the above stated findings related to General Plan, Zoning and CEQA conformance and for the reasons stated below, and subject to the conditions set forth in the Resolution:

1. The failure to approve the permit would result in the creation or continued existence of a nuisance, blight or dangerous condition;

2. The failure to approve the permit would jeopardize public health, safety or welfare;

3. The approval of the permit should facilitate a project that is compatible with the surrounding neighborhood;

4. The approval of the permit should maintain the supply of existing housing stock in the City of San José;

5. Both inventoried and non-inventoried buildings, sites and districts of historical significance should be preserved to the maximum extent feasible;

6. Rehabilitation or reuse of the existing building would not be feasible; and

7. The demolition, removal, or relocation of the building without an approved replacement building should not have an adverse impact on the surrounding neighborhood.

Analysis: The project includes the demolition of an existing 12,000-square-foot office building that is an eligible City Landmark. The approval of the demolition permit would not result in the creation or continued existence of a nuisance, blight or dangerous condition, nor would it jeopardize public File No. H23-007 & ER23-075

health, safety or welfare, as it would allow for the improvement and redevelopment of the site with a multifamily residential building that is consistent with the allowable uses in the TR Zoning District.

As discussed in the Environmental Impact Report for the project (see the California Environmental Quality Act section below), the existing building is eligible for listing on the California Register of Historical Resources and meets the significance criteria of a City Landmark for its association with New Formalism architecture, during a time period (1960s) where New Formalism was prevalent in San José. However, given the scope of the project, the rehabilitation or reuse of the existing building would not be feasible as the proposed project requires the complete redevelopment of the site to support the new multifamily building. The Mitigation Monitoring and Reporting Program for the Environmental Impact Report details mitigation measures for the demolition of this historic resource, including submittal of Historic American Building Survey documentation and three- dimensional laser scans of the building, advertisement of the building for relocation for at least 60 days prior to issuance of a demolition or grading permit, and development of a commemorative interpretive display or exhibit to be approved by the Department of Planning, Building, and Code Enforcement.

Reuse of the existing building would reduce the project density and result in the project’s financial infeasibility. The project is compatible with the surrounding neighborhood, and has been found to be in conformance with development and design standards except for four standards, for which the applicant is eligible for incentives and waivers pursuant to the state Density Bonus Law. The approval of the Site Development Permit will increase the supply of housing in the City of San José.

Therefore, findings can be made to support demolition of the building.

Tree Removal Permit Findings
Tree Replacement Ratios
Circumference of Tree to be
Removed
Type of Tree to be Removed
Minimum Size of Each
Replacement Tree Native Non-
Native Orchard
38 inches or more 5:1 4:1 3:1 15-gallon
19 to 38 inches 3:1 2:1 None 15-gallon
Less than 19 inches 1:1 1:1 None 15-gallon
x:x = tree replacement to tree loss ratio
Note: Trees greater than or equal to 38-inch circumference measured at 54 inches above natural grade shall not be removed unless a Tree Removal Permit, or equivalent, has been approved for the removal of such trees. For Multifamily residential, Commercial and Industrial properties, a permit is required for removal of trees of any size.

A 38-inch tree equals 12.1 inches in diameter.

A 24-inch box replacement tree = two 15-gallon replacement trees

In order to make the Tree Removal findings pursuant to Section 13.32.100 of the San José Municipal Code and recommend approval to the City Council, the Planning Commission must determine:

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1. That the condition of the trees with respect to disease, danger of falling, proximity to an existing or proposed structure, and/or interference with utility services, is such that preservation of the public health or safety requires their removal.

2. That the location of the trees with respect to a proposed improvement unreasonably restricts the economic development of the parcel in question.

Analysis: The project includes the removal of all 20 trees onsite, including 10 ordinance-size trees.

Based on the arborist report prepared by HMH Engineers (Exhibit G) and last revised on June 12, 2023, the trees to be removed are located within the footprint of the building. Of the trees, 10 require replacement at a 4:1 ratio (40 trees), six require replacement at a 2:1 ratio (12 trees), and four require replacement at a 1:1 ratio (four trees). Therefore, the removal of 20 trees requires the replacement of 56 15-gallon trees. The project does not include planting of any onsite trees, and the City’s off-site tree planting fee will be required to be paid for all 56 replacement trees.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
The City of San José, as the lead agency for the proposed project, prepared the 380 North First Street Draft Environmental Impact Report (Draft EIR). The Notice of Preparation was circulated from August 28, 2023 to September 27, 2023. The Draft EIR was circulated for public review and comment from October 18, 2024 to December 2, 2024. A First Amendment to the Draft EIR was prepared that provided responses to public comments submitted during the public circulation period and revisions to the text of the DEIR. The First Amendment together with the Draft EIR constitute the Final Environmental Impact Report (Final EIR) for the proposed project.

Summary of Environmental Impacts Reduced to Less than Significant with Mitigation The Draft EIR identified potential environmental impacts to Air Quality, Biological Resources, Cultural Resources, Hazards and Hazardous Materials, and Noise. With implementation of the mitigation measures specified in the Mitigation Monitoring and Reporting Program (“MMRP”) prepared for the project, these impacts are reduced to less than significant levels. As part of the certification of the Final EIR, the City Council will need to approve the associated MMRP for the project.

Summary of Environmental Impacts Determined to be Significant and Unavoidable The Draft EIR found that the project would result in a significant and unavoidable impacts to Cultural Resources due to the proposed demolition of the building at 380 North First Street eligible for listing under the California Register of Historical Resources and the San José Historic Resources Inventory as a Candidate City Landmark.

If City Council were to approve the project as proposed, in compliance with CEQA Guidelines Section 15093, a Statement of Overriding Considerations must be adopted with findings that the specific economic, legal, social, technological, or other benefits, including region-wide or statewide environmental benefits, of a proposed project outweigh the unavoidable adverse environmental effects if an environmentally superior alternative is not chosen. The Statement of Overriding Consideration must find that the economic and social benefits of the proposed project, as listed in the CEQA Resolution (Exhibit F) outweigh its significant environmental impacts.

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Alternatives
The Draft EIR evaluated four selected project alternatives, the No Project – No Development Alternative, the No Project – Development Consistent with Existing Land Use Designation, the Preservation of Historic Resource On-Site Alternative, and the Reduced Density Preservation Alternative that could lessen the significant effects of the project and achieve the project objectives, in accordance with CEQA Guidelines Section 15126.6. Alternatives that were considered but rejected include the Location Alternative and the Relocation of the Historic Resource Off-Site Preservation Alternative.

The No Project – No Development Alternative would avoid all project impacts; however, CEQA Section 15126.6(e)(2) requires that when the no-project alternative is the environmentally superior alternative, another alternative shall be identified. The Reduced Density Preservation Alternative would be the environmentally superior alternative beyond the no-project alternative because it would preserve the existing historical building on-site. The significant unavoidable impacts to historical resources would be avoided under this alternative. The Reduced Density Preservation Alternative would still be required to implement all other mitigation measures, Standard Permit Conditions, and Conditions of Approval identified for the proposed project. As a result, the impacts to air quality, biological resources, subsurface cultural resources, hazardous waste, and noise would be reduced to a less than significant level consistent with the proposed project.

DEIR Circulation Comments
Six comments were received during the DEIR public circulation period, comprising three from regional and local agencies and three from members of the public, organizations, and businesses. City staff prepared responses in a First Amendment/Response to Comments document addressing the following topics:

Cultural Resources and Tribal Cultural Resources
• Sensitivity for tribal cultural resources on the project site and recommendations to reduce potential impacts to potential uncovered tribal cultural resources.

Hydrology and Water Quality
• The project should incorporate water conservation measures. • Textual changes requested to update the identification of the Guadalupe River watershed, the Municipal Regional Permit issuance date, Valley Water’s Well Ordinance, flood zone map numbers, and the Groundwater Management Plan.

Utilities and Service Systems
• Identification of Valley Water fee title property and easements and requirements to obtain permits from Valley Water at the time of project development.

Transportation
• The project applicant would need to notice the VTA of construction work that would block any bus services and obtain appropriate permits from the agency to construct the project.

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DEIR Circulation Unnecessary
Staff responded to the comments and questions in the First Amendment. None of the comments raised represent new significant information that would warrant recirculation of the Draft EIR pursuant to CEQA Guidelines Section 15088.5(a). The recirculation of an EIR is required when significant new information is added to the EIR after public notice is given of the availability of the Draft EIR for public review but before certification. “Information” can include changes in the project or environmental setting as well as additional data or other information. New information added to a Draft EIR is not “significant” unless the Draft EIR is changed in a way that deprives the public of meaningful opportunity to comment on a substantial adverse environmental effect of the project or a feasible way to mitigate or avoid such an effect (CEQA Guidelines Section 15088.5).

The First Amendment was posted on the City’s website on January 31, 2025, and all commenters were notified via email of the document’s availability. The Draft Environmental Impact Report (DEIR) and First Amendment are available for public review on the City’s website:
https://www.sanjoseca.gov/your-government/departments-offices/planning-building-code- enforcement/planning-division/environmental-planning/environmental-review/active-eirs/380-north- first-street-residential-project.

PUBLIC OUTREACH
City Council Policy 6-30
Staff followed Council Policy 6-30: Public Outreach Policy for Pending Land Use and Development Proposals to inform the public of the proposed project. Onsite signs have been posted on all project frontages since August 4, 2023.

A Joint EIR Scoping/Community Meeting was held via Zoom on September 11, 2023, to introduce the proposed project to the community and gather feedback. There were 19 members of the public at the meeting and 10 provided comments. Two people voiced support for the project while others raised concerns about loss of views of Downtown and privacy for residents in nearby buildings, limited parking, traffic safety, and affordability of the residential units.

A notice of the public hearing was distributed to the owners and tenants of all properties located within 1,000 feet of the project site and posted on the City website. The staff report is also posted on the City website. Additionally, a notice of the public hearing was posted in a newspaper of record (San José Post Record) on January 22, 2025. Staff received two comments via email. A representative of Ryland Mews Homeowners Association (nearby residential complex) expressed concerns about the amount of parking provided by the project, impacts on solar installations, increased noise pollution, and maintenance of the rail right-of-way adjacent to the project site, while a representative of Catalyze SV stated the organization’s support of the proposal and urged the applicant to include more bicycle parking, provide transit passes to residents, unbundle parking, increase the buildng height and shrink the building footprint, and increase the percentage of affordable units.

Historic Landmarks Commission
The project was referred to the Historic Landmarks Commission. The project was heard at the Historic Landmarks Commission on November 6, 2024 (Meeting Minutes) as part of the preparation and notice of availability of the Environmental Impact Report. Members of the Historic Landmarks Commission File No. H23-007 & ER23-075

expressed concern about the demolition of a building that is an eligible City Landmark and eligible for listing on the California Register of Historical Resources, and made the following recommendations:
• Designation of the existing building as a City Landmark. • Exploration of the potential for adaptive reuse of the existing building/incorporation of the existing building into the project design.
• Exploration of the potential for a reduction in project density or an increase in the building height to preserve the existing building while maintaining the proposed density of the project. • Exploration of all other preservation alternatives.

At the hearing, a representative of the Preservation Action Council of San José recommended that the brick siding on the upper floors of the proposed building be continued to the pedestrian level to strengthen the building’s connection to the Borcher Brothers Building, City Landmark #994, located approximately 80 feet north of the project site at 396 North 1st Street. In response, the applicant revised the design of the North 1st Street elevation to include brick siding at ground level. The Historic Resource Evaluation that was prepared as part of the Draft Environmental Impact Report is attached (see Exhibit H).

Project Manager: Kora McNaughton
Approved by: /s/ John Tu, Division Manager for Christopher Burton, Planning, Building & Code Enforcement Director.

Please click on the title of each exhibit to view the document:

EXHIBITS:

Exhibit A: Vicinity Map/Aerial (Page 26)
Exhibit B: General Plan Map (Page 27)
Exhibit C: Zoning Map (Page 28)
Exhibit D: Plan Set
Exhibit E: Draft Site Development Permit Resolution
Exhibit F: Draft CEQA Resolution
Exhibit G: Arborist Report
Exhibit H: Historic Resource Evaluation
Exhibit I: Public Correspondence

Owner/Applicant: Applicant’s Representative:

Mostafa Aghamiri
380 N 1st Street QOZB LLC
130 Sisters Court
Los Gatos, CA 95030
Erik Schoennauer
90 Hawthorne Way
San José, CA 95110

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Exhibit A: Vicinity Map/Aerial

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Exhibit B: General Plan Map

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Exhibit C: Zoning Map

H23-007 & ER23-075
Links to Correspondence Received After 2/5/25
Click on the title to view document.

Correspondence Received After 2/5/25