TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Christopher Burton
SUBJECT: See Below DATE: August 31, 2026
COUNCIL DISTRICT: 2
SUBJECT: PD25-020 & ER25-212 - Planned Development Permit for Certain Real Property Located at 5651 Cottle Road.
RECOMMENDATION
The Planning Commission voted 8-0-3 to recommend the City Council take the following action:
Adopt a resolution approving, subject to conditions, a Planned Development Permit to allow modifications to an existing, vacant, approximately 37,130-square-foot building on an approximately 4.27-gr oss-acre site located on the west side of Cottle Road approximately 150 feet south of the intersection of Cottle Road and Poughkeepsie Road (5651 Cottle Road), which include: (1) Four new tenant spaces, (2) An approximately 5,568-square-foot addition, the demolition of a 1,200 square foot floor, and modifications to the building façade, (3) Changes to the on-site vehicle circulation, (4) changes to the stormwater control plan, (5) The off-sale of alcohol and a Determination of Public Convenience or Necessity, (6) A new daycare/preschool use and playground, and (7) removal of 23 trees on an approximately 4.27-gross-acre site located on the west side of Cottle Road approximately 150 feet south of the intersection of Cottle Road and Poughkeepsie Road (5651 Cottle Road).
SUMMARY AND OUTCOME
The existing approximately 41,498-square-foot commercial building is proposed to include up to four tenant spaces with a 25,142-square-foot Sprouts grocery store (Suite 3) with off-sale of alcohol (ABC License Type 20, beer and wine), a 9,840-square-foot Goddard daycare/preschool (Suite 4), and two vacant tenant spaces of approximately 3,222 square feet each (Suites 1 and 2) intended for future use.
COUNCIL AGENDA: 9/15/2026
FILE: 26-952
ITEM: 10.1(b)
HONORABLE MAYOR AND CITY COUNCIL
August 31, 2026
Subject: PD25-020 & ER25-212 - Planned Development Permit for Certain Real Property Located at 5651 Cottle Road
The hearing before the City Council is to evaluate whether a significant and overriding public benefit or benefits will be provided by the proposed use pursuant to Section
6.84.030.E of the San José Municipal Code. If the project is determined to provide a significant and overriding public benefit, then the City Council may grant a Determination of Public Convenience or Necessity and approve the Planned Development Permit for the off-sale of alcohol for the grocery store at the subject site.
Per the California ABC License Report, the number of off-sale locations authorized in this census tract is limited to three; however, there are four active off-sale licenses within the census tract, and including this site’s grocery store, there will be a total of five off -sale licenses.
The San José Police Department, in its review memorandum, states that the project site is located within San José Police Beat Y3, which has a high crime rate (defined as 20 percent above the City average). The Police Department is, however, neutral to the off- sale of alcohol with a Type-20 ABC license at the subject site.
Pursuant to Section 6.84.030.C, findings B.1 and B.3 for the Determination of Public Convenience or Necessity require City Council approval, with a recommendation from the Planning Commission, because of the site’s overconcentration of off-sale licenses and its location within 500 feet of a future day care center and adjacency to residentially zoned properties (within 150 feet). Therefore, it requires the City Council to evaluate whether a significant and overriding benefit or benefits will be provided by the proposed use pursuant to Section 6.84.030.E.
BACKGROUND
On August 12, 2026, the Planning Commission held a Public Hearing to consider the CEQA exemption and the Planned Development Permit, including the Determination of Public Convenience or Necessity. The project was on the public hearing portion of the agenda. Staff provided an oral staff report followed by a PowerPoint presentation by Derrick Larson, the applicant representative for Dollinger Properties. There were no questions or comments requested from the staff or the applicant. Commissioner Rosario moved to approve the staff recommendation. Commissioner Oliverio seconded the motion. Oliverio thanked the applicant for keeping the site commercial. The motion passed unanimously 8-0-3 (Bickford, Cao, and Nguyen were absent).
ANALYSIS
Analysis of the proposed CEQA clearance and Planned Development Permit is contained in the attached Planning Commission Staff Report dated August 12, 2026 (Attachment). Staff recommends approval of the Planned Development Permit, since the proposal meets all findings and standards.
HONORABLE MAYOR AND CITY COUNCIL
August 31, 2026
Subject: PD25-020 & ER25-212 - Planned Development Permit for Certain Real Property Located at 5651 Cottle Road
EVALUATION AND FOLLOW-UP
The City Council is the final decision-making body for this Planned Development Permit.
If the City Council accepts the Planning Commission’s recommendation to approve the Planned Development Permit, the associated improvements to the site and building can be made, daycare use can be established, and the future grocery store can add beer and wine for off-premises consumption in conjunction with a Type 20 ABC License.
If the City Council denies the Planning Commission’s recommendation, then the proposed project may not proceed.
COORDINATION
The preparation of this memorandum has been coordinated with the City Attorney’s Office.
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the September 15, 2026 City Council meeting.
Staff followed City Council Policy 6-30: Public Outreach Policy 1 to inform the public of
the proposed project. On-site signs have been posted on the project frontage since March 17, 2026. A notice of the public hearing was distributed to the owners and tenants of all properties located within 500 feet of the project site and posted on the City website. Staff has been available to respond to questions from the public, and no comments have been received to date.
COMMISSION RECOMMENDATION AND INPUT
On August 12, 2026, at the Planning Commission Hearing, the Commission accepted staff’s recommendation to make a recommendation to the City Council for approval of the proposed Planned Development Permit.
1 https://www.sanjoseca.gov/home/showpublisheddocument/12813/636669915135130000
HONORABLE MAYOR AND CITY COUNCIL
August 31, 2026
Subject: PD25-020 & ER25-212 - Planned Development Permit for Certain Real Property Located at 5651 Cottle Road
CEQA
If approved, the project would be exempt per Section 15301 for Existing Facilities.
If denied, the project would be exempt per Section 15270 for projects that are denied.
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/
CHRISTOPHER BURTON
Secretary, Planning Commission
For questions on the permit appeal, please contact John Tu, Division Manager, Planning, Building and Code Enforcement Department at [email protected] or (408) 535-6818.
ATTACHMENT:
Planning Commission Staff Report August 12, 2026
PLANNING COMMISSION AGENDA: 08-12-26
ITEM: 5.a.
TO: PLANNING COMMISSION FROM: Christopher Burton, Director of the Planning, Building, and
Code Enforcement Department
SUBJECT: File Nos. PD25-020 & ER25-212 DATE: August 12, 2026 ______________
COUNCIL DISTRICT: 2
Type of Permit Planned Development Permit
Demolition N/A
Proposed Land Uses Grocery store with alcohol off-sale (ABC Type 20 License), Daycare/Preschool.
New Residential Units N/A
New Square Footage 5,568 square feet
Tree Removals N/A
Project Planner Rina Shah
CEQA Clearance Exempt per CEQA Guidelines Section 15301 for Existing Facilities
CEQA Planner Nhu Nguyen
RECOMMENDATION
Staff recommends that the Planning Commission make a recommendation to the City Council to:
1. Consider the exemption in accordance with the California Environmental Quality Act (CEQA) Guidelines Section 15301 for Existing Facilities; and
2. Adopt a resolution, approving a Planned Development Permit, subject to conditions, to allow modifications to an existing, vacant, approximately 37,130-square-foot building, which include: (1) four new tenant spaces, (2) an approximately 5,568-square-foot addition, the demolition of a 1,200 square foot floor, and modifications to the building façade, (3) changes to the on-site vehicle circulation, (4) changes to the stormwater control plan, (5) the off-sale of alcohol and a Determination of Public Convenience or Necessity, (6) a new daycare/preschool use and playground, and (7) removal of 23 trees on an approximately 4.27-gross-acre site.
ATTACHMENT: Planning Commission Staff Report August 12, 2026
File No. PD25-020 & ER25-212
PROPERTY INFORMATION
Location West side of Cottle Road, approximately 150 feet south of the Poughkeepsie Road and Cottle Road intersection (5651 Cottle Road)
Assessor Parcel No. 692-01-013
General Plan Neighborhood/Community Commercial
Growth Area N/A
Zoning A(PD) Planned Development (File No. PDC77-184)
Historic Resource No
Annexation Date November 14, 1958
Council District 2
Acreage 4.27 gross acres
Proposed Density N/A
PROJECT BACKGROUND
As shown on the attached Aerial Map (Exhibit A), the subject property is located on the west side of Cottle Road, approximately 150 feet south of the Poughkeepsie Road and Cottle Road intersection (5651 Cottle Road, APN: 692-01-013). The approximately 37,130-square-foot vacant building is located within an existing commercial shopping center (Orchard Town and Country) with shared driveways and surface parking lots. The site is bounded by Cottle Road to the east, Poughkeepsie Road to the north, Makati Circle and Musto Avenue to the west, and Rochester Avenue to the south.
The site is accessed by one driveway on Cottle Road, two on Rochester Avenue, one on Musto Avenue, and shared driveways through adjacent properties along Cottle Road and Poughkeepsie Road. Existing sidewalks border all adjacent streets. The site is also served by VTA bus routes 27 and 68, with stops located near the intersection of Cottle Road and Poughkeepsie Road.
The existing commercial shopping center is surrounded by multifamily residential development to the west and south, commercial retail and restaurant uses across Cottle Road to the east, and commercial retail uses to the north.
SURROUNDING USES
General Plan Zoning District Existing Use
West Mixed Use Neighborhood MUN Mixed Use
Neighborhood Multifamily apartments
East Urban Village UV Urban Village Commercial
ATTACHMENT: Planning Commission Staff Report August 12, 2026
File No. PD25-020 & ER25-212
On February 9, 2026, the property owner, DD Ventures, LLC, filed an application for a Planned Development Permit to allow modifications to an existing vacant 37,130-square-foot building (formerly OSH) with up to four new tenant spaces. The proposed modifications include a 5,568-square-foot building addition with façade improvements, site circulation and stormwater plan revisions, a Determination of Public Convenience or Necessity for off-sale alcohol sales at a future grocery store (Sprouts), establishment of a daycare/preschool (Goddard School), and removal of 23 trees on an approximately 4.27-gross-acre site.
The existing approximately 41,498-square-foot commercial building is proposed to include a 25,142-square-foot Sprouts grocery store (Suite 3), a 9,840-square-foot Goddard daycare/preschool (Suite 4), and two vacant tenant spaces of approximately 3,222 square feet each (Suites 1 and 2).
The grocery store requests a Type 20 ABC License, which authorizes the sale of beer and wine for off-premises consumption during the store’s operational hours daily from 7:00 am to 10:00 p.m. Based on the Operations Plan provided, the grocery store would have a “new Alcohol Training Program” for all employees, and security cameras would be strategically placed throughout the store's interior space, as well as the cameras will be placed on the exterior of the building, facing the public right-of-way. Alcoholic beverages would take up approximately 151 square feet (less than one percent) of the approximately 25,142-square- foot sales floor of the grocery store (Exhibit B), which is less than the maximum five percent (approximately 1,257 square feet) of the total sales floor area allowed for off-sale uses.
The subject site is located within Census Tract 5120.29. Based on the California ABC License Report and the attached Police Memo dated March 10, 2026 (Exhibit C), the number of off- sale locations authorized in this census tract is typically limited to three. The California ABC License Report and the Police Memo both show that there are four active off-sale licenses within the census tract, and including this site’s grocery store, there will be a total of five off- sale licenses.
The Police Memo also states that the project site is located within San José Police Beat Y3, which has a high crime rate (defined as 20 percent above the City average). Because of the site’s overconcentration of off-sale licenses and proximity to a future daycare center and existing residences, a Determination of Public Convenience or Necessity is required. The Police Department is neutral to the off-sale of alcohol with a Type-20 ABC license at the subject site.
The Goddard School will occupy approximately 9,840 square feet of the building for use as a daycare/preschool for up to 148 students, including an outdoor playground of approximately 11,285 square feet. The preschool/daycare will operate from 6:30 am to 6:30 pm, Monday through Friday, according to their operations plan (Exhibit D). Special events may be held occasionally in the evenings and at weekends. The other two tenant spaces will be improved to be made available for future tenants.
North Neighborhood
Community/Commercial
A(PD) Planned
Development (PDC77-
184)
Commercial
South
Mixed Use Neighborhood
& Neighborhood
Community/Commercial
A(PD) Planned
Development (PDC77-
184)
Multifamily apartments
& restaurant
ATTACHMENT: Planning Commission Staff Report August 12, 2026
File No. PD25-020 & ER25-212
PROJECT ANALYSIS SUMMARY
Below is a summary of the required analysis for the General Plan and Zoning Policies. For the comprehensive analysis, reference the attached Exhibit E: Draft Resolution.
General Plan Consistency
The project is consistent with the Envision San Jose 2040 General Plan designation of Neighborhood Community/Commercial (NCC) as shown on the attached General Plan Map (Exhibit F). This designation supports a very broad range of commercial activity, including commercial uses that serve the communities in neighboring areas, such as neighborhood- serving retail and services, and commercial/professional office development. Neighborhood / Community Commercial uses typically have a strong connection to and provide services and amenities for the nearby community and should be designed to promote that connection with an appropriate urban form that supports walking, transit use, and public interaction. Therefore, the project is consistent with the land use designation.
The project is consistent with General Plan policies related to off-sale alcohol (LU-5.10), business growth and retention (IE-2.6), retention of commercial lands (LU-4.1), and promotion of neighborhood-serving commercial uses (LU-5.1). The project would allow one of the tenant spaces (Suite 3) for a future grocery store (Sprouts), which is a retail establishment that includes a full range of groceries, produce, and meat, as well as the proposed request for off- sales of alcohol, consistent with the General Plan land use designation of NCC. The grocery store would operate with a Type 20 ABC license for the incidental sale of beer and wine, complementing the daily grocery needs of residents, employees, and visitors in the area, consistent with the General Plan.
The project is also consistent with General Plan policies related to daycare facilities, especially ES-1.10 to promote a high-quality daycare facility, and Noise Policies EC-1.2 and EC-1.3 to mitigate noise at the closest residence, approximately 80 feet from the project site, across Makati Circle and Musto Avenue to the west, northwest, and south of the project site.
The outdoor playground is proposed at the north end of the building within the former outdoor sales area of the previous Osh Supply Hardware. The western side and a portion of the northern side of the playground will be enclosed by a 24-foot-high CMU wall with a metal roof, while a 6-foot-high solid composite fence will screen the remaining northern edge. The transition to the 6-foot-high fence is approximately 120 feet from the nearest residential property line to the northwest. Based on the noise study provided, the 24-foot-high CMU wall and roof structure is expected to provide a minimum 12 dBA reduction in playground noise, while the 6-foot-high composite fence is expected to provide an additional minimum 3 dBA reduction. As a result, projected noise levels from outdoor playground activities would be approximately 44 dBA at the nearest residential property line, well below the applicable 55 dBA maximum threshold. Therefore, operational noise impacts from the proposed playground would be less than significant and consistent with the General Plan noise policies.
Zoning Ordinance Conformance
The project is within the A(PD) Planned Development Zoning District as shown on the attached Zoning District Map (Exhibit G), and is consistent with the zoning district’s allowed land uses, development standards, and bicycle and motorcycle parking standards. The A(PD) Planned Development Zoning District was established with Zoning File No. PDC77-184. The Planned Development zoning established both commercial and residential uses. The zoning ATTACHMENT: Planning Commission Staff Report August 12, 2026
File No. PD25-020 & ER25-212
was effectuated with a Planned Development Permit File No. PD80-011. Any change of use to the prior Planned Development Permit requires a new Planned Development Permit application and review process. The General Development Plan describes the “C-1” district as the most applicable for the commercial uses on the project site.
The operation of uses is pursuant to the “C-1” Commercial District, which is currently the CP Commercial Pedestrian Zoning District. The retail grocery store is a permitted use, pursuant to Table 20-90 in Section 20.40.100. Pursuant to Table 20-90 in Section 20.40.500 of the San José Municipal Code, alcohol, off-sale -Type 20 beer and wine only, requires a Conditional Use Permit within the CP Zoning District. The exterior building modifications require a Site Development Permit, pursuant to Section 20.100.610, that will conform to the Citywide design objective standards and guidelines as discussed in the Resolution. The preschool/daycare center requires a Special Use Permit pursuant to Section 20.40.500. Since the site is zoned A(PD), a Planned Development Permit is required for concurrent review of the proposed uses and modifications to the building and site, under one unified process and under one Planned Development (PD) Permit, pursuant to Section 20.100.140 of the SJMC, as submitted.
PROJECT FINDINGS SUMMARY
The Project meets all of the findings for the issuance of a Planned Development Permit pursuant to Section 20.100.720 of the Zoning Code as analyzed in the attached Exhibit E:
Draft Resolution. However, the Planning Commission cannot make all of the findings related to Off-Sale Alcohol and issuance of a Determination of Public Convenience or Necessity as detailed below.
Off-Sale Alcohol Findings
Pursuant to Section 20.80.900.C. Where a Planned Development Permit (in-lieu of a Conditional Use Permit) application requesting the off-premises sale of alcoholic beverages also would require a Determination of Public Convenience and Necessity under the provisions of Chapter 6.84 of Title 6 of this Code, and the Planning Commission cannot make the required findings under Section 6.84.030 of Chapter 6.84 of Title 6 of this Code, the Planning Commission shall make a report and recommendation to the City Council on said Planned Development Permit application. In this instance, the City Council shall be the initial and final decision-making body on said Planned Development Permit application.
Analysis: Based on the California Department of Alcoholic Beverage Control (ABC) database and City GIS map measurements (Exhibit H), there are three other existing off-sale alcohol uses within 500 feet of the project site. The nearest off-sale establishment within the same census tract is San Jose Pump and Save, located approximately 375 feet away at 102 Poughkeepsie Road. With the proposed grocery store, there would be a total of four off-sale establishments within a 1,000-foot radius.
As previously stated, the project includes both the off-sale alcohol use within a full-service grocery store and a future preschool/daycare within 500 feet of each other on the same project site. Additionally, the proposed off-sale use is within 150 feet of residentially zoned properties to the northwest, south, and west. The project site is located within Census Tract 5020.29, with four active off-sale licenses, exceeding the ABC allocation of three. Approval of the proposed Type 20 ABC license would increase the total to five off-sale licenses within this census tract.
ATTACHMENT: Planning Commission Staff Report August 12, 2026
File No. PD25-020 & ER25-212
As confirmed with the Police Memorandum (Exhibit C) dated March 10, 2026, the site is located within Police Beat Y3, which has a high crime rate, and because of the overconcentration of off-sale licenses and the proximity to daycare and residences, a Determination of Public Convenience or Necessity (PCN) is required. The required PCN findings are addressed separately below.
Determination of Public Convenience or Necessity Findings Pursuant to Section 6.84.030.C of the San José Municipal Code, the Planning Commission serves as the recommending body to the City Council for this project. Because the project does not satisfy all required findings, a determination of overriding public benefit is required.
The project site is not located within a Strong Neighborhood Initiative area; therefore, this finding can be made.
The proposed grocery store with off-sale beer and wine use would not create a grouping of more than four off-sale establishments within 1,000 feet. There are three existing off-sale establishments located within this radius, though two of them (Yolo Beer and Wine and Target) are in adjacent census tracts. With the addition of the off-sale at the grocery store, there would be a grouping of four; therefore, this finding can be made.
The project is not located within 500 feet of a school, public park, social services agency, or residential care facility. However, it is within 500 feet of the proposed daycare center and within approximately 150 feet of existing multifamily residences; therefore, this finding cannot be made.
Approximately 151 square feet (less than one percent) of the 25,142-square-foot grocery store sales floor would be devoted to alcohol sales, making alcohol incidental to the primary grocery use. Therefore, this finding can be made.
The census tract is not unusually configured in shape; therefore, this finding cannot be made.
There are three existing off-sale alcohol establishments within 500 feet of the project site. Two of the three are in the adjacent census tracts. The proposed grocery store would provide a neighborhood-serving convenience with incidental off-sale of alcohol, and the Operations Plan includes measures to minimize potential impacts. Therefore, this finding can be made.
The project site is located within Census Tract 5020.29, which is overconcentrated with off- sale alcohol licenses and is identified as a high-crime area based on 806 police calls for service within a 1,000-foot radius during the 12-month analysis period. The subject property is located within a major shopping district along Cottle Road. Some of these calls may be attributable to businesses in adjacent census tracts rather than existing off-sale alcohol establishments within the subject tract, as shown in the ABC map (Exhibit H). Of the 394 calls listed in the Police Memo, 300 calls were attributed to either vehicle accidents (146 calls) or thefts (154 calls). Only two calls were attributed to public intoxication. While the proposed alcohol sales would be incidental to grocery store use, the site is part of a larger shopping center, and the proposed off-sale alcohol use is not expected to be detrimental to adjacent businesses, including the future preschool/daycare. The Police Department is neutral on the proposal; however, approval of the project would further contribute to the existing overconcentration of off-sale alcohol licenses. Therefore, this finding cannot be made.
As Findings (3) and (5.c.) cannot be made, a Determination of Public Convenience or Necessity (PCN) must be made by the City Council.
ATTACHMENT: Planning Commission Staff Report August 12, 2026
File No. PD25-020 & ER25-212
Pursuant to Section 6.84.030.E, the City Council may issue a determination where the City Council does all of the following: (a) decides that not all of the above required findings can be made; and (b) identifies and finds that significant and overriding consideration for the public benefit(s) will be provided by the proposed project.
Findings for Child Care Council Policy 6-14
The Child Care Policy 6-14 is to ensure safe operation of the site, minimize the impact to the surrounding uses by utilizing good site design, efficient parking and site circulation, safe drop- off and pick-up operations, and secured child safety measures.
The project site is located within an existing commercial shopping center at the intersection of Cottle Road and Poughkeepsie Road and is designated Neighborhood Community/Commercial, which supports neighborhood-serving commercial uses, including daycare facilities. The proposed daycare would occupy a vacant tenant space adjacent to a grocery store with an off-sale alcohol license, with the tenant entrances located within 500 feet of one another. The uses are compatible, as parents may conveniently combine child drop-off or pick-up with grocery shopping. The approximately 4.27 gross-acre site exceeds the recommended minimum site area of 10,000 square feet and is served by existing two-way driveways from Cottle Road and Rochester Avenue.
The playground areas are enclosed by existing six-foot-high composite fencing and 24-foot- high CMU walls and are separated from the nearest multifamily residences by approximately 80 feet across Musto Avenue and Makati Circle. Existing perimeter landscaping and mature trees further buffer the playgrounds from adjacent residential uses. According to the applicant's Noise Report (Exhibit I), prepared by a qualified acoustic consultant, projected playground noise levels at the nearest residential property line would be approximately 44 dBA, well below the applicable 55 dBA maximum standard.
Pursuant to Chapter 20.90 of the Zoning Code, the project is exempt from minimum parking requirements and the Transportation Demand Management (TDM) Plan requirement because the daycare will serve fewer than 250 students. The site provides 197 existing vehicle parking spaces and 21 bicycle parking spaces. Consistent with the submitted Operations Plan, parents will park in designated spaces before escorting children into the facility, with no curbside loading or idling permitted. Staff will monitor parking operations via security cameras during peak drop-off and pick-up periods, and security cameras will be installed to monitor the premises during business hours. As confirmed in the Final Public Works Memorandum dated June 26, 2026, on-site vehicle queuing, truck circulation, and emergency vehicle access are adequate to serve the proposed use.
Tree Removal Findings
Chapter 13.32 of the San José Municipal Code establishes required findings that must be made for issuance of a Live Tree Removal Permit for ordinance-size and non-ordinance-size trees to be removed from the site. As shown on the Landscape Plans (Sheet L-1), the project requires the removal of 23 non-native trees, including 21 ordinance-size trees (38 inches or greater in circumference) and two non-ordinance-size trees (less than 19 inches in circumference). The trees are located within the proposed parking lot improvements, circulation areas, landscaping, and playground areas. Their removal is necessary to accommodate the approved site improvements, and preservation of the trees is not feasible without substantially limiting the proposed circulation and site design. The tree removal ATTACHMENT: Planning Commission Staff Report August 12, 2026
File No. PD25-020 & ER25-212
requires planting of 88 new 15-gallon trees on site. The applicant will plant 21 new 24-inch boxed trees on site and will pay in-lieu fees for the remaining 46 trees not planted on site.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
Under the provisions of Section 15301 for Existing Facilities of the State Guidelines for Implementation of the California Environmental Quality Act (CEQA), as stated below, this Project is found to be exempt from the environmental review requirements of Title 21 of the San José Municipal Zoning Code, implementing the California Environmental Quality Act of 1970, as amended.
Class 1 Categorical Exemption consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The key consideration is whether the Project involves negligible or no expansion of an existing use.
Analysis: The Project would result in the conversion of a vacant commercial building into four commercial tenant spaces consisting of a grocery store and a daycare. Construction of the project would include interior layout changes and exterior modifications to accommodate the new uses, as seen in the floor plan set (Exhibit J). The physical changes to the building and site would be negligible and would not create a significant environmental impact. The proposed commercial uses are consistent with the existing commercial uses on site.
Therefore, the Project is categorically exempt pursuant to CEQA Section 15301 for Existing Facilities.
Staff, therefore, recommends that the Planning Commission make a recommendation for approval to the City Council.
PUBLIC OUTREACH
Staff followed Council Policy 6-30: Public Outreach Policy for Pending Land Use and Development Proposals to inform the public of the Project. On-site signs have been posted at the site frontage since March 17, 2026. A notice of the public hearing was distributed to the owners and tenants of all properties located within 500 feet of the Project site and posted on the City website. Staff has been available to respond to questions from the public, and to date, no comments have been received.
Project Manager: Rina Shah
Approved by: /s/ Manira Sandhir, Deputy Director for Christopher Burton, Director of Planning Building and Code Enforcement
ATTACHMENT: Planning Commission Staff Report August 12, 2026
File No. PD25-020 & ER25-212
ATTACHMENTS:
Exhibit A: Aerial Map
Exhibit B: Operations Plan: Grocery Store
Exhibit C: Police Memo
Exhibit D: Operations Plan: Daycare
Exhibit E: Draft Resolution
Exhibit F: General Plan Map
Exhibit G:
Exhibit H:
Exhibit I:
Exhibit J:
Zoning Map
Off-Sale Map
Noise Report
PD Plan Set
Owner: Applicant Representative:
DD Ventures LLC
555 Twin Dolphin Dr., Suite 600
Redwood City, CA 94065
Derrick Larson
555 Twin Dolphin Dr., Suite 600
Redwood City, CA 94065
ATTACHMENT: Planning Commission Staff Report August 12, 2026