TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Christopher Burton
SUBJECT: See Below DATE: October 5, 2026
COUNCIL DISTRICT: 6
SUBJECT: GP26-002 - Early Consideration for a Privately-Initiated General Plan Amendment For Certain Real Property Located at 525 Race Street
RECOMMENDATION
The Planning Commission voted 10-0-1 (Commissioners Casey absent) to recommend the City Council take the following action:
Direct staff to continue the processing of a privately-initiated General Plan Amendment application to amend the Envision San José 2040 General Plan Land Use/Transportation Diagram designation from Industrial Park to Combined Industrial/Commercial on an approximately 3.98-gross-acre site located at 525 Race Street.
SUMMARY AND OUTCOME
City Council Policy IP-3.11 of the Envision San José 2040 General Plan provides for an applicant of a privately-initiated General Plan Amendment to request the Early Consideration process. This allows for a General Plan Amendment to be heard by the City Council for early feedback before the full review and submittal of the development permit.
City Council can take one of the following actions for the proposed General Plan Amendment to change the land use designation at the subject site from Industrial Park to Combined Industrial/Commercial: (1) deny the proposed General Plan Amendment or (2) approve staff recommendation to continue processing the General Plan Amendment and any other required associated applications for the proposed school use.
If the City Council denies the proposed General Plan Amendment, the site would retain its current land use designation of Industrial Park.
If the City Council approves staff recommendation to allow for continued processing the General Plan Amendment for future consideration, staff will complete the review of the General Plan Amendment, Rezoning and Conditional Use Permit for the proposed COUNCIL AGENDA: 10/20/26
FILE: 26-1080
ITEM: 10.2
HONORABLE MAYOR AND CITY COUNCIL
October 5, 2026
Subject: GP26-002 - Early Consideration for a Privately-Initiated General Plan Amendment for Certain Real Property Located at 525 Race Street
project, and evaluate environmental impacts under the California Environmental Quality Act (CEQA). Staff would bring a recommendation for approval or denial of all applications once the full analysis is complete, potentially to the General Plan Annual Review hearing at the end of 2027.
BACKGROUND
On September 9, 2026, the Planning Commission held a public hearing for Early Consideration of the proposed privately-initiated General Plan Amendment.
Commissioner Rosario made a motion to approve staff recommendation to allow for continued processing of the General Plan Amendment. Commissioner Oliverio seconded the motion. The motion passed 10-0-1 (Casey absent).
ANALYSIS
For a complete analysis, please see the Attachment - Planning Commission Staff Report from September 9, 2026.
.
EVALUATION AND FOLLOW-UP
If the City Council approves the Planning Commission’s recommendation to allow for continued processing, staff will process the General Plan Amendment and other associated applications and environmental review documents, once submitted, to be heard by the City Council after full review and CEQA analysis is complete.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office and the City Manager’s Budget Office.
PUBLIC OUTREACH
A notice of the public hearings was distributed to the owners and tenants of all properties located within 1,000 feet of the project site and a notice for the City Council hearing was posted in the San José Post printed paper and on the website, on August 14, 2026. The staff report is also posted on the City’s website. Staff have been available to respond to questions from the public.
HONORABLE MAYOR AND CITY COUNCIL
October 5, 2026
Subject: GP26-002 - Early Consideration for a Privately-Initiated General Plan Amendment for Certain Real Property Located at 525 Race Street
This memorandum will be posted on the City’s Council Agenda website for the October 20, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
On September 9, 2026, the Planning Commission held a public hearing for Early Consideration of the proposed privately-initiated General Plan Amendment request.
Staff Presentation
Planner Laura Maurer provided a presentation on the proposed General Plan Amendment request, including site context, project review and General Plan conformance analysis, and staff’s recommendation.
Applicant Presentation
Applicant Trisch Aust of Basis Independent Schools (Basis) and Leatha Clark of The Morley Brothers, a real estate advisor to the applicant, provided a presentation on the school and details about the proposed project on the subject site. Trisch described the history and growth of Basis Independent Schools across the United States and the school’s reputation and academic performance. She explained that Basis was seeking to expand in Silicon Vally because its existing campuses are at capacity with waiting lists.
Leatha disclosed that she is a registered lobbyist with the City of San José and presented details about the proposed project, including the reuse and renovation of the existing office building and construction of a gymnasium addition and outdoor play area.
She summarized the feedback received from local residents at a community meeting hosted by the applicant which included concerns about traffic and parking. She described measures to address traffic concerns through the proposed traffic circulation plan and described other measures to reduce traffic like staggered pickup/drop-off times, shuttles and transit passes.
Public Hearing
There were no comments from the public.
Planning Commission Discussion
Commissioner Rosario spoke about the quality and reputation of the school, based on his experience with private schools in the area, and noted that high-quality schools can help attract families and businesses to the community. He expressed strong support for the school’s expansion in San José.
Commissioner Rosario made a motion to approve the staff recommendation.
Commissioner Oliverio seconded the motion.
HONORABLE MAYOR AND CITY COUNCIL
October 5, 2026
Subject: GP26-002 - Early Consideration for a Privately-Initiated General Plan Amendment for Certain Real Property Located at 525 Race Street
Vice-chair Young commended the applicant for addressing the traffic with a queueing system but expressed concern about the amount of traffic exiting onto Race Street. He noted that the applicant would likely need to work with the Department of Transportation to consider possible signalization of the intersection. He disagreed that the school would be fiscally beneficial for the City since the site could otherwise have a use that could generate sales tax revenue for the City. He emphasized the importance of retaining employment land, particularly for uses like research and development and manufacturing. Despite these concerns, Vice Chair Young expressed support for the motion.
Commissioner Bickford asked whether there was an opportunity to expedite the General Plan Amendment hearing cycle rather than waiting until the end of 2027.
Staff responded that at the direction of City Council, staff will be proposing an additional General Plan Amendment hearing cycle for privately-initiated General Plan Amendments. However, the applicant would need to submit and have completed the review of the entire permitting package, including CEQA review, before it could be brought to hearing, making a potential spring 2027 hearing uncertain at this stage.
In response to Commissioner Cao’s request for clarification on the recommendation options for Early Consideration, staff described the potential outcomes of the Early Consideration process and explained that the process provides an early indication of whether the proposed land use change is generally supported before proceeding with full project review.
Commissioner Cao additionally expressed support for the motion and for the proposed educational use and the benefits it brings to an area.
Commissioner Bickford asked the applicant if they had considered using existing vacant school sites rather than converting a commercial building.
The applicant explained that Basis considers existing school facilities, but that location, cost of reuse, and proximity to its existing campus were factors in selecting the proposed site. The applicant also noted their prior experience successfully converting vacant office buildings into schools.
Chair Cantrell asked the applicant if there would be any public benefits, such as scholarships or community access to its facilities.
The applicant explained that open access to the property for the community would present safety and security concerns. They also described ways Basis has engaged with surrounding communities at other locations, including community meetings, invitations to school activities, making spaces available to the community for rent and in certain cases, made available without any cost to community organizations, and providing space for afterschool service providers.
In response to Commissioner Cantrell’s question about whether they would use union labor for construction, the applicant’s representative, Sean Morley, explained that the
HONORABLE MAYOR AND CITY COUNCIL
October 5, 2026
Subject: GP26-002 - Early Consideration for a Privately-Initiated General Plan Amendment for Certain Real Property Located at 525 Race Street
school has worked with many building trades in the past but that they had not yet chosen a contractor this early in the process.
Chair Cantrell encouraged the applicant to consider providing scholarships to expand access to students who might otherwise not be able to afford the school and to consider providing additional community benefits.
CEQA
Not a Project, File No. PP17-007, Preliminary direction to staff and eventual action requires approval from decision-making body.
The Early Consideration hearing process does not include an action for approval but instead only includes actions to either deny or allow for continued processing. If City Council directs staff to continue processing the General Plan Amendment request, staff will complete the required full environmental review for the proposed General Plan Amendment, rezoning and development permit for action for approval or denial at a future regular General Plan Amendment hearing cycle.
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, please contact Ruth Cueto, Principal Planner, Planning, Building and Code Enforcement Department at [email protected] or (408) 535-7886.
ATTACHMENT:
Planning Commission Staff Report from September 9, 2026 PLANNING COMMISSION AGENDA: 9-9-2026
ITEM: 8.a
TO: PLANNING COMMISSION FROM: Chris Burton
SUBJECT: File No. GP26-002 DATE: September 9, 2026
COUNCIL DISTRICT: 6
Type of Permit General Plan Amendment
Project Planner Laura Maurer
CEQA Clearance PP17-007, Not a Project, Preliminary direction to staff and eventual action requires approval from decisionmaking body.
RECOMMENDATION
Staff recommend that the Planning Commission recommend the City Council take the following action:
Allow for continued processing of the General Plan Amendment request to amend the Envision San José 2040 General Plan Land Use/ Transportation Diagram designation from Industrial Park to Combined Industrial/Commercial on an approximately 3.98-gross-acre site.
EARLY CONSIDERATION PROCESS
Policy IP-3.11 of the Envision San José 2040 General Plan (“General Plan”) provides for an applicant of a privately-initiated General Plan Amendment to request Early Consideration for a project that would need a General Plan Amendment. This Early Consideration process allows for a General Plan Amendment to be heard by City Council for early feedback from City Council before full review and submittal of other required permits. After recommendation from Planning Commission, City Council can either deny the proposed General Plan Amendment or direct staff to continue processing the General Plan Amendment and any other required permits.
Staff recommends that the Planning Commission forward a recommendation of continued processing to the City Council for the General Plan Amendment request because the proposal is consistent with the major strategies, goals, and policies of the Envision San José 2040 General Plan. The consistencies are explained in more detail in the General Plan Conformance section of this report.
If the General Plan Amendment is allowed to continue processing, the earliest this project could be brought to the General Plan Amendment Planning Commission and City Council hearings would be the end of 2027, after submittal and review of the required development permit and rezoning applications, and environmental documents.
Attachment: Planning Commission Staff Report
September 9, 2026
File No. GP26-002
PROPERTY INFORMATION
Location 525 Race Street
Assessor Parcel No. 264-08-045, 264-08-068, 264-08-069
Existing General Plan Industrial Park
Proposed General Plan Combined Industrial Commercial
Zoning IP Industrial Park
Historic Resource No
Annexation Date 264-08-045 and 264-08-068 March 25, 1998 (Sunol No_62) 264-08-069 April 18, 1957 (Sunol_3-A)
Council District 6
Acreage 3.98 gross acres
PROJECT BACKGROUND
On June 3, 2026, the applicant, Sean Powell of Basis Independent School, LLC a DE LLC, submitted an application for a General Plan Amendment to change the Envision San José 2040 General Plan land use designation from Industrial Park to Combined Industrial/Commercial on a 3.98-gross-acre subject site located at 525 Race Street. Additionally, the applicant requested an Early Consideration hearing for the proposed General Plan Amendment. The proposed development for the site is to convert the existing office/research and development building to a private high school with a maximum capacity of 800 students and 100 staff members and construct a 16,626 square foot gymnasium and an outdoor play space area. Elementary and secondary schools are not allowed in the IP Industrial Park zoning district but are allowed with a Conditional Use Permit in the CIC zoning district. The formal application for a Conditional Use Permit for school use has not yet been submitted but an appointment for submittal is scheduled for August 28, 2026.
On July 8, 2026, staff sent the initial comment letter to the applicant detailing how the proposed General Plan Amendment is consistent with the Envision San José 2040 General Plan Major Strategies, policies, and goals. However, the applicant has
elected to continue with an Early Consideration
hearing to get feedback from the Planning
Commission and City Council about the proposed
changes.
Site Location
The subject site, as shown in Figure 1, consists of
three parcels totaling 3.98 gross acres and is
located at the southwest intersection of Race
Street and Saddle Rack Street. The subject site is
across the street from multifamily residences to
the north and east and west, adjacent to
warehouse buildings to the south.
Figure 1 Aerial Site Map
Attachment: Planning Commission Staff Report
September 9, 2026
File No. GP26-002
The wider surrounding area is characterized by multifamily residences and parks to the north, multifamily residences and offices to the east, industrial and office to the south, and multifamily, commercial and single-family residences to the west. The area is an older, well-established neighborhood with a mix of commercial and industrial uses, with some older single-family and small multifamily and newer higher-density multifamily.
The subject site is located in the Race Street Light Rail (West of Sunol) Urban Village area, which does not currently have an adopted Urban Village Plan.
Site Background and Description
The northern parcel (264-08-069) of the subject site was annexed into the City in 1957. The remaining two parcels (264-08-045 and 264-08-068) of the subject site were annexed in 1998 to facilitate the demolition of a warehouse and construction of an office/research and development building (City File No. H97-114) on the full subject site. The two-story, 72,744 square foot building and surface parking lot with 267 parking spaces are accessible via three access points off Race Street and were completed in 1998. The building on the subject site is currently vacant, and the site contains dozens of mature trees.
ANALYSIS
The proposed General Plan Amendment application is analyzed with respect to conformance with:
1. Envision San José 2040 General Plan
2. Title 20 of the Municipal Code (Zoning Ordinance)
3. California Environmental Quality Act (CEQA)
SURROUNDING USES
General Plan Zoning District Existing Use
North Urban Residential A(PD) Planned Development Multifamily Residential East Transit Residential A(PD) Planned Development Multifamily Residential South Combined
Industrial/Commercial
CIC Combined
Industrial/Commercial Industrial and Office
West
Combined Industrial/
Commercial and
Industrial Park
LI Light Industrial &
IP Industrial Park
Commercial and
Multifamily Residential
Attachment: Planning Commission Staff Report
September 9, 2026
File No. GP26-002
ENVISION SAN JOSE 2040 GENERAL PLAN CONFORMANCE
Existing Land Use Designation
As shown in Figure 2, the existing Envision San
José General Plan land use designation of the
subject site is Industrial Park, which allows a
floor area ratio (FAR) of up to 10. This
designation is intended for a wide variety of
industrial users such as research and
development, manufacturing, assembly, testing
and offices. This designation is differentiated
from the Light Industrial and Heavy Industrial
designations in that Industrial Park uses are
limited to those for which the functional or
operational characteristics of a hazardous or
nuisance nature can be mitigated through design
controls. Hospitals may be appropriate within
this designation if it can be demonstrated that
they will not be incompatible with Industrial Park uses or other nearby activities. Areas identified exclusively for Industrial Park uses may contain a very limited number of supportive and compatible commercial uses when those uses are of a scale and design providing support only to the needs of businesses and their employees in the immediate industrial area. These commercial uses should typically be located within a larger industrial building to protect the character of the area and maintain land use compatibility.
Proposed Land Use Designation
The proposed Envision San José General Plan
land use designation of the subject site is
Combined Industrial/Commercial, which allows
an FAR of up to 12. This designation allows a
significant amount of flexibility for the
development of a varied mixture of compatible
commercial and industrial uses, including
hospitals and private community gathering
facilities. Properties with this designation are
intended for commercial, office, or industrial
developments or a compatible mix of these uses.
This designation occurs in areas where the
existing development pattern exhibits a mix of
commercial and industrial land uses or in areas
on the boundary between commercial and
industrial uses. Development intensity can vary
significantly in this designation based on the nature of specific uses likely to occur in a particular area.
In order to maintain an industrial character, small, suburban strip centers are discouraged in this Figure 2 Existing General Plan Land Use Designation
Figure 3 Proposed General Plan Land Use Designation
Attachment: Planning Commission Staff Report
September 9, 2026
File No. GP26-002
designation, although larger big-box type developments may be allowed because they mix elements of retail commercial and warehouse forms and uses.
General Plan Conformance
The proposed General Plan Amendment to Combined Industrial/Commercial is consistent with the following General Plan strategies and policies:
Land Use and Employment Policy IE-1.2: Plan for the retention and expansion of a strategic mix of employment activities at appropriate locations throughout the City to support a balanced economic base, including industrial suppliers and services, commercial/retail support services, clean technologies, life sciences, as well as high technology manufacturers and other related industries.
Promote Fiscally Beneficial Land Use Policy FS-4.1: Preserve and enhance employment land acreage and building floor area capacity for various employment activities because they provide revenue, nearterm jobs, contribute to our City’s long-term achievement of economic development and job growth goals, and provide opportunities for the development of retail to serve individual neighborhoods, larger community areas, and the Bay Area.
Promote Fiscally Beneficial Land Use Policy FS-4.6: Consider conversion from one employment land use to another, except for Light Industrial or Heavy Industrial land uses, where the conversion would retain or expand employment capacity and revenue generation, particularly for intensification on-site if the proposed conversion would result in a net increase in revenue generation.
Analysis: The proposed Combined Industrial/Commercial land use designation increases the strategic mix of potential employment activities on the subject site as the conforming CIC Combined Industrial/Commercial zoning district maintains many of the same uses as the IP Industrial Park zoning district, but includes 44 additional uses, mainly education, food services, general retail, general services, health services, and vehicle related uses, and excludes four uses. The proposed change maintains the subject site as employment land with a similar floor area ratio (FAR) but with a wider range of uses, particularly within an Urban Village area with close proximity to high-quality transit and adjacent to residential uses, providing an opportunity to provide services to nearby residents. Therefore, the proposed General Plan Amendment is consistent with the above policies of the General Plan.
Private Community Gathering Facilities Policy VN-5.1: Promote Private Community Gathering Facilities within Urban Villages and other areas near residents to serve neighborhoods and contribute towards the development of vibrant, walkable places.
Education Policy ES-1.7: Support efficient use of land through consideration of smaller school sites and alternative school configurations (e.g., multi-story buildings, underground parking, placement of recreation space over parking areas or on rooftops) to support the needs of each community.
Efficient Use of Residential and Mixed-Use Lands Policy LU-10.8: Encourage the location of schools, private community gathering facilities, and other public/quasi-public uses within or adjacent to Urban Villages and other growth areas and encourage these uses to be developed in an urban form and in a mixed-use configuration.
Analysis: The proposed Combined Industrial/Commercial land use designation would facilitate the development of a school on the subject site within an Urban Village area that would not be allowed under the current Industrial Park designation. The proposed change would facilitate an urban Attachment: Planning Commission Staff Report
September 9, 2026
File No. GP26-002
alternative school configuration with the reuse and expansion of an existing multistory office/R&D building on a relatively small site for a school within an Urban Village area. Therefore, the proposed General Plan Amendment is consistent with the above policies of the General Plan.
ZONING ORDINANCE CONFORMANCE
The subject site is currently zoned as IP Industrial
Park zoning district. If the General Plan Amendment
application for a change to Combined
Industrial/Commercial is allowed to continue
processing, a rezoning to the CIC Combined
Industrial/Commercial zoning district will be
required. California Senate Bill 1333 requires the
zoning district of a property to conform to the
General Plan land use designation. If the General
Plan Amendment is denied, the current zoning
district of each parcel will remain unchanged.
The applicant has an appointment on August 28,
2026, to submit a rezoning application.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) CONFORMANCE PP17-007, Not a Project, Preliminary direction to staff and eventual action requires approval from decision-making body.
The Early Consideration hearing process does not include an action for approval but instead only includes actions to either deny or allow for continued processing. If City Council directs staff to continue processing the General Plan Amendment request, staff will complete the required full environmental review for the proposed General Plan Amendment, rezoning and development permit for action for approval or denial at the regular General Plan Amendment hearing cycle.
PUBLIC OUTREACH
Staff followed Council Policy 6-30: Public Outreach Policy in order to inform the public of the proposed project. The project is considered a Significant Community Interest Proposal, therefore the applicant posted a 4’x 6’ on-site sign at the subject site on July 20, 2026, to inform the neighborhood of the proposed project.
On July 22, 2026, the applicant held a non-City sponsored community meeting, which was noticed within a 1,000-foot radius. The meeting included Councilmember Mulcahy and office staff, and four members of the public were in attendance. The main concerns raised at the meeting were increased parking and traffic on Saddle Rack Street, which is north of the project, as well as the addition of a sidewalk along Saddle Rack Street, which would terminate midblock. Additionally, concern was raised about the lack of a mid-block crossing on Race Street.
Figure 4 Current Zoning District Map
Attachment: Planning Commission Staff Report
September 9, 2026
File No. GP26-002
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’s website. Staff have been available to respond to questions from the public. Staff have not received any comments or inquiries from the public for information on the proposed changes.
Project Manager: Laura Maurer
Approved by: /s/ Manira Sandhir, Deputy Director, for Christopher Burton, Director of Planning, Building & Code Enforcement
Owner/ Applicant: Applicant Representative:
Sean Powell
Basis Independent School, LLC a DE LLC
1999 S. Bascom Avenue, Suite 400
Campbell, CA 95008
[email protected]
Leatha Clark
The Morley Bros
236 N. Santa Cruz Avenue, Suite 106A
Los Gatos, CA 95030
[email protected]
Attachment: Planning Commission Staff Report
September 9, 2026