City of Sunnyvale
Agenda Item
23-0139 Agenda Date: 2/13/2023
REPORT TO PLANNING COMMISSION
SUBJECT
Proposed Project: Forward Recommendations to the City Council for:
PEERY PARK PLAN REVIEW to allow a modification to the Community Benefits Program for an approved office development (Planning File No. 2015-8110).
Location: 675 Almanor Avenue (APN:165-44-006 and 165-44-012) File #: 2022-7673
Zoning: PPSP-IEAC (Peery Park Specific Plan / Innovation Edge-Activity Center Overlay) Applicant / Owner: Dollinger Properties (applicant) / Almanor Ventures LLC (owner) Environmental Review: The project is exempt from additional California Environmental Quality Act (CEQA) review per CEQA Guidelines Section 15301 (existing facilities).
Project Planner: Shétal Divatia, (408) 730-7637, [email protected]
REPORT IN BRIEF
General Plan: Peery Park (PP)
Zoning: PPSP-IE/AC (Peery Park Specific Plan-Innovation Edge/Activity Center Overlay) Existing Site Conditions: New 4-story office/R&D building Surrounding Land Uses
North: Vacant portion of adjacent site in PPSP Innovation Edge/Activity Center Overlay/Futures Site
South: Office in PPSP Mixed Industry Core
East: Office/R&D in PPSP Innovation Edge/Activity Center Overlay/Futures Site West: Office/R&D in PPSP Innovation Edge/Activity Center Overlay/Futures Site Issues: Loss of retail space and implementation of Peery Park Specific Plan Staff Recommendation: Recommend to the City Council:
Approve the proposed amendment to the previously approved Peery Park Specific Plan Review Permit (PPSPRP) and associated PPSP Community Benefits Program in Attachment 7 and find that this action is exempt from CEQA pursuant to CEQA Guidelines Section 15301.
BACKGROUND
PPSPRP (File No. 2015-8110) for an office/R&D building was approved by the City Council in 2017 (Attachment 2, RTC No. 17-0455). The approval was for a 150,651 square-foot office building at 100% Floor Area Ratio (FAR). The building was constructed in 2021 and was built 653 square feet smaller than the approved project (149,998 square feet at 99.57% FAR). The building was recently leased by Synopsys, Inc.
The project utilized higher FAR provisions from the PPSP which required the provision of additional community benefits. To achieve 100% FAR, the project was required to obtain a total of 65 FAR points, of which 15 Defined Benefits points were granted for a 2,500 square-foot, publicly accessible
Attachment 1
23-0139 Agenda Date: 2/13/2023
retail space located along the project frontage on Almanor Avenue.
Description of Proposed Project
The applicant proposes to convert the approved 2,500 square foot retail space into a cafeteria that is accessible only to employees (categorized as office/R&D use). The applicant is requesting to convert 15 Defined Benefits points, that were provided for the original retail, into Flexible Benefits points by making a payment of $1,125,363 (at a rate of $50 per square foot) towards the Community Benefits Fund (Attachment 7, Amended PPSP-Community Benefits Program).
Th requested modification to the Community Benefits Program is subject to Planning Commission review and City Council review and approval.
EXISTING POLICY
The project site is subject to the purpose, intent and policies of the PPSP adopted by the Sunnyvale City Council on September 20, 2016 (RTC No. 16-0907). The PPSP includes guiding principles, district policies and design framework. Projects in the PPSP are subject to a Plan-specific development code, design guidelines and an implementation plan.
The purpose of the PPSP is to guide both private and public investment activities in the Plan area and to support and promote the type of investment that will enhance the beauty and vitality of this major Sunnyvale workplace district.
ENVIRONMENTAL REVIEW
The conversion of the planned retail space to private employee cafeteria is categorically exempt from review under CEQA pursuant to the Class 1 Exemption (CEQA Guidelines Section 15301). The Class 1 Exemption covers minor interior and exterior modifications to existing facilities and structures involving negligible or no expansion of the existing use.
DISCUSSION
Community Benefits Program
The PPSP Community Benefits Program establishes contribution of community facilities, services or additional impact fees in exchange for added development capacity or intensity (FAR). There are two types of Community Benefits. The first is “Defined”, which includes a list of points that can be achieved by incorporating different types of Community Benefits into the project. Examples include providing publicly accessible retail space, child care, structured or underground parking, or a higher level of green building certification. The second is “Flexible”, which allows the City to consider project circumstances and City priorities in assigning points in exchange for Community Benefits. A common Flexible benefit that has been utilized is payment towards the Community Benefits Fund.
As previously noted, the original project included a 2,500 square-foot retail space located along the project frontage (Almanor Avenue), which counted as 15 Defined Benefits points. The applicant proposes to convert the retail space into office/R&D use for an employee cafeteria and utilize Flexible Benefits points by making a payment of $1,125,363 towards the Community Benefits Fund at $50 per square feet (Attachment 7, Amended PPSP-Community Benefits Program). Because the building was constructed smaller than the original project, 14.94 FAR points are required in-lieu of 15 FAR points. The following is the fee calculation:
Attachment 1
23-0139 Agenda Date: 2/13/2023
14.94 FAR points = 22,507 square feet
22,507 square feet x $50 per square feet = $1,125,363 Community Benefits fee The applicant notes that retail space is not needed/desired by Synopsys and that a provision of a cafeteria instead would better serve their needs (Attachment 5, Applicant’s Letter). Staff notes that inclusion of retail and publicly accessible outdoor areas are encouraged for this District; however, they are not requirements of the PPSP. Staff understands the impact of the COVID pandemic on office and retail uses and is supportive of assisting property owners in addressing this changing environment. Staff believes that contribution to the Community Benefits Fund would also benefit the community at large as those funds are used towards the enhancement and improvement of the community including transportation services and emergency services and facilities.
FISCAL IMPACT
The proposed change would contribute $1,125,363 to the Community Benefits Fund as noted in the Community Benefits Program in Attachment 7.
PUBLIC CONTACT
Notice of public hearing, staff report and agenda:
1. Published in the Sun newspaper
2. Posted on the City of Sunnyvale’s Website
3. Agenda posted on the City’s official notice bulletin board
4. Notices mailed to property owners and tenants within 1,000 feet
5. Notice posted at the site.
See Attachment 3 for the Site, Vicinity and Noticing Map. As of the date of staff report preparation, staff has received no comments from members of the public.
ALTERNATIVES
Recommend to the City Council:
1. Approve the proposed amendment to the previously approved Peery Park Specific Plan Review Permit and associated Peery Park Specific Plan Community Benefits Program in Attachment 7 and find that this action is exempt from CEQA pursuant to CEQA Guidelines Section 15301.
2. Alternative 1 with modifications.
3. Do not approve the Amendment.
STAFF RECOMMENDATION
Alternative 1: Recommend to the City Council: Approve the proposed amendment to the previously approved Peery Park Specific Plan Review Permit and associated Peery Park Specific Plan Community Benefits Program in Attachment 7 and find that this action is exempt from CEQA pursuant to CEQA Guidelines Section 15301.
Prepared by: Shétal Divatia, Senior Planner
Reviewed by: Noren Caliva-Lepe, Principal Planner
Reviewed by: Shaunn Mendrin, Planning Officer
Reviewed by: Trudi Ryan, Director of Community Development Reviewed by: Teri Silva, Assistant City Manager
Attachment 1
23-0139 Agenda Date: 2/13/2023
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Reserved for Report to Council
2. Link to RTC No. 17-0455
3. Site, Vicinity and Noticing Map
4. Recommended Findings (CEQA and PPSPRP)
5. Applicant’s Letter
6. Plans of Modified Area
7. Amended PPSP Community Benefits Program (Planning File No. 2015-8110, Amended by Planning File No. 2022-7673)
Attachment 1