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Excerpt of Draft Minutes of the Planning Commission Meeting of July 10, 2023

Sunnyvale City Council
August 8, 2023

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Excerpt of Draft Minutes of the Planning Commission Meeting of July 10, 2023
Meeting
August 8, 2023
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Sunnyvale City Council
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7
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752 KB
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City of Sunnyvale
Excerpt Meeting Minutes - Draft
Planning Commission
7:00 PM Online and Bay Conference Room
(Room 145), City Hall,
456 W. Olive Ave.,
Sunnyvale, CA 94086
Monday, July 10, 2023
Special Meeting: Study Session - Canceled | Public Hearing - 7:00 PM

STUDY SESSION CANCELED
7 P.M. PLANNING COMMISSION MEETING

CALL TO ORDER
Chair Pyne called the meeting to order at 7:00 PM.

ROLL CALL
Chair Martin Pyne
Vice Chair Nathan Iglesias
Commissioner Galen Kim Davis
Commissioner Daniel Howard
Commissioner John Howe
Commissioner Michael Serrone
Commissioner Neela Shukla

Present: 7 -

PUBLIC HEARINGS/GENERAL BUSINESS

4. 23-0682 Forward Recommendation to the City Council:

Proposed Project: Downtown Specific Plan Amendment Initiation to study changes to the development intensities and standards for Block 18 of the Downtown Specific Plan to allow an increase to the allowable maximum office square footage of 205,000 square feet and increase the maximum allowable building height from 75 feet to 85 feet.

File #: PLNG-2023-0306
Location: Downtown Specific Plan Block 18 (bounded by W.

Washington Avenue, S. Sunnyvale Avenue, W. Iowa Avenue and S.

Mathilda Avenue)
Zoning: DSP/18 (Downtown Specific Plan, Block 18)
Applicant / Owner: STC Venture Block LLC and related entities (applicant and owner)
Environmental Review: The project is exempt from the California

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July 10, 2023Planning Commission Meeting Minutes - Draft Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(a).

Project Planner: Shétal Divatia, (408) 730-7637,
[email protected]
Planning Officer Shaunn Mendrin presented the staff report with a slide presentation.

Chair Pyne confirmed with Planning Officer Mendrin that the existing Development Agreement allows developments in the southern portion of Sub-block 6 to be a maximum of 85 feet in height. If no action is taken regarding this matter, then the Planning Commission would be increasing the maximum height of developments in the northern portion of Sub-block 6 only.

Chair Pyne asked why this item was not considered along with other portions of Block 18 in 2020. Planning Officer Mendrin answered that the applicants will be better able to address this question.

Commissioner Serrone confirmed with Planning Officer Mendrin that new state laws will apply to the amendment of the approved Development Agreement.

At Commissioner Serrone’s request, Planning Officer Mendrin explained what is meant by, “evaluate the development standard for the transition of the buildings on Sunnyvale Avenue,” as noted in the staff report.

Commissioner Serrone asked whether a community room that was proposed as a community benefit in 2020 is present on the proposed project site. Planning Officer Mendrin responded that the applicant may address this question.

Commissioner Serrone confirmed with Planning Officer Mendrin that although the existing Development Agreement does not require retail along Washington Avenue for Sub-block 6, the Planning Commission may include this recommendation in their motion.

Commissioner Serrone thanked City staff and STC LLC (Cityline) for working together to rebuild our downtown over many years and especially during the COVID-19 pandemic.

Commissioner Howard confirmed with Planning Officer Mendrin that the proposed maximum allowable building height is being increased to allow for additional commercial space and potential retail space on the ground floor of developments.

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July 10, 2023Planning Commission Meeting Minutes - Draft Commissioner Howard confirmed with Planning Officer Mendrin that the massing studies and design standards in the Downtown Specific Plan (DSP) address the height transitions of developments on Sunnyvale Avenue and Murphy Avenue.

Commissioner Howard spoke in support Commissioner Serrone’s recommendation to encourage a minimum for retail units on the ground floor of developments along Washington Avenue.

Commissioner Howe confirmed with Planning Officer Mendrin that if results from the DSP amendment initiation study suggests changes to the development intensities and standards for Block 18 of the DSP, these changes and any proposed changes to the Development Agreement will be considered by the Planning Commission.

At Commissioner Shukla’s request, Planning Officer Mendrin explained why 22,103 square feet of flex space on Sub-block 3 North will be converted to office space.

Chair Pyne opened the Public Hearing.

Josh Rupert (representative of STC Block 6) presented additional information about the proposed project.

Commissioner Howe asked whether Mr. Rupert may provide details on proposed and cumulative retail for each proposed project on Block 18 at a later time. Mr.

Rupert agreed to do so.

At Commissioner Howe’s request, Planning Officer Mendrin explained why applications for a Downtown Specific Plan Amendment and Development Agreement amendments may not be accepted until after January 1, 2024.

Commissioner Shukla commented that retail and commercial space work in conjunction to make the City’s downtown area a vibrant space that will attract many.

At Commissioner Shukla’s request, Mr. Rupert explained why the maximum height on the northern half of Sub-block 6 is being increased by 10 feet.

At Commissioner Shukla’s request, Dave Hopkins (representative of Sares Regis) explained the massing planned for Sub-block 6 and the mid-block road that will connect to the adjacent block. He also assured her that retail will be included on the

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July 10, 2023Planning Commission Meeting Minutes - Draft ground floor of developments on Sub-block 6.

At Commissioner Shukla’s request, Mr. Rupert provided additional information on the flex space that will be located on Sub-block 3N and be designated for commercial office use. Mr. Rupert also provided details on the community room located at 241 Taaffe Street.

Commissioner Serrone confirmed with Mr. Rupert that spaces on the ground floor of planned developments for Sub-block 6 will be designated for retail use. Mr. Rupert also explained why he is unable to specify a minimum for retail units at this time.

Planning Officer Mendrin added that a market analysis will be conducted as required by the General Plan amendment and the applicant will then submit a proposal for how much retail will be included for the developments on Sub-block 6.

At that time, the Planning Commission and City Council may make recommendations on the minimum for retail units.

Commissioner Serrone confirmed with Planning Officer Mendrin that uses for retail spaces in the downtown area must adhere to commercial use as defined in the DSP.

Commissioner Serrone suggested that the City consider accepting applications for a DSP amendment and Development agreement amendments prior to January 1, 2024, and explained why.

Commissioner Howard confirmed with Mr. Hopkins that the public park on Sub-block 6 is anticipated to be completed in July 2024. Mr. Hopkins added that there are ongoing leasing negotiations for restaurants on the west side of Murphy Avenue, and Mr. Rupert shared additional details for planned retail on Sub-block 3N.

Commissioner Howard confirmed with Mr. Rupert that the public art piece is planned to remain on the block across from Whole Foods.

Commissioner Davis confirmed with Mr. Rupert that 150 to 200 employees are expected to be supported by the increase of 205,000 square feet of office space in Sub-block 6.

Commissioner Davis commented that the proposed project will be a nice, vibrant addition to the downtown area.

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July 10, 2023Planning Commission Meeting Minutes - Draft Commissioner Davis asked whether the inclusion of more housing was considered for Sub-block 6, and Mr. Hopkins provided details on this matter.

Vice Chair Iglesias confirmed that while the applicants are supportive of Alternative 1, they do not agree with Alternative 2 since it prevents applications for a DSP amendment and Development Agreement amendments to be submitted before January 1, 2024.

Vice Chair Iglesias commented that he agrees with Commissioner Howe’s suggestion that the applicants provide feedback on the amount of retail space that will be devoted to Sub-block 6 over time. Mr. Rupert agreed that this is something that would be done regardless since he considers it an organic part of the application process.

Vice Chair Iglesias discussed the expected number of employees for the offices of Sub-block 6 considering a post-COVID-19 environment. Vice Chair Iglesias noted that the density associated with housing and office developments will likely result in more retail downtown.

At Chair Pyne’s request, Planning Officer Mendrin explained the outcome of applications for a DSP amendment and Development Agreement amendments submitted before January 1, 2024.

Chair Pyne commended the applicants for improvements they have made to the downtown area.

At Chair Pyne’s request, Mr. Rupert explained that their intent to make the AMC signage visible from Murphy Avenue will not be impacted by development in Sub-block 6. Chair Pyne stated that he would be interested in a rendering of this view from the pedestrian mall on Murphy Avenue at a later time.

Commissioner Howe and Mr. Rupert discussed a potential revision to Alternative 2.

There were no public speakers for this agenda item.

Chair Pyne closed the Public Hearing.

MOTION: Commissioner Howe moved and Commissioner Howard seconded the motion to recommend to City Council Alternative 1 and a modified Alternative 2.

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July 10, 2023Planning Commission Meeting Minutes - Draft These are stated below:

Alternative 1: Initiate a Downtown Specific Plan Amendment study to consider amending Block 18 of the Downtown Specific Plan to increase the allocated office use square footage by 205,000 square feet above the maximum office square footage; increase the maximum building height from 75 feet to 85 feet for Sub-block 6; evaluate the development standard for the transition of the buildings on Sunnyvale Avenue; and consider Amendments to the current Development Agreement between the City and STC LLC (Cityline); and, find that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(a).

Modified Alternative 2 – City staff will monitor the progress of other applications and studies to determine if applications can be submitted earlier than January 1, 2024.

The applicant is encouraged to continue working on the details of the retail and share that information with the City.

Commissioner Howe provided a brief overview of his proposed motion, commended the applicants on the work they have done to date, and noted that the proposed project will improve the downtown area. He also emphasized that the Planning Commission values the inclusion of retail in developments.

Commissioner Howard thanked Mr. Rupert for his energy and for the role he played in developing the City’s downtown area.

Chair Pyne spoke in support of the motion and the proposed project.

The motion carried by the following vote:

Yes: Chair Pyne
Vice Chair Iglesias
Commissioner Davis
Commissioner Howard
Commissioner Howe
Commissioner Serrone
Commissioner Shukla
7 -
No: 0

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July 10, 2023Planning Commission Meeting Minutes - Draft This recommendation will be forwarded to the City Council for consideration at the August 8, 2023 meeting.

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