This report provides information on:

• Which land uses provide a credit to the pool
• What square footage associated with a project would debit the pool
• How the status of the pool will be conveyed to the Planning Commission and City Council
• Current status of the pool

The Sunnyvale zoning code establishes a floor area ratio (FAR) of up to 35% as a permitted use for most industrial sites. Projects proposed at greater than 35% FAR require the approval of a Use Permit. In 1993, an EIR for the Futures Study was conducted to assess the impacts of additional industrial floor area on the community. To predict these impacts, a projected development of 35% was assumed for all industrially zoned properties except for sites zoned for higher levels of intensity (e.g. Futures Sites B, C and E). The EIR also recognized that some sites already developed with FARs higher than 35% would likely remain at that FAR. Specific ownership or use of each property was not considered. The 1996 Land Use and Transportation Element of the General Plan identifies future industrial land use based on the Futures analysis.

In May 1999, the Planning Commission and City Council reviewed and adopted criteria for evaluating projects with a FAR of greater than 35%. As part of the review criteria adopted, the Council approved the concept of a floor area pool that would consist of unused potential industrial square footage. This unused square footage represents the building area for industrial uses that could potentially be developed on sites that are developed with non-industrial uses (e.g. hotel, restaurant and others).

This item was heard before the Planning Commission on January 24, 2000 (see Attachment B, Minutes). The Commission found that the land uses contributing to the Pool were appropriate. However, three Commissioners had some general concern about what action would be taken when the Pool reached zero. Staff explained that the lack of available floor area in the pool is a separate policy item and was discussed in the June 1999 report. The staff recommendation to adopt the pool administration was approved, with 4 Commissioners voting approval and 3 Commissioners abstaining due to the above concerns.

The City Council approved review criteria for higher FAR developments in June 1999. In addition, the following General Plan policies apply to the discussion.

The Planning Division has completed a thorough analysis of existing land uses in the industrially zoned portion of the City, which included research of City database records supplemented by field checks. Copies of maps with existing land use and tables showing parcel data are attached to this staff report.

Council raised the question as to how the development pool should be structured, specifically in regard to non-industrial uses such as retail uses, public facility use, and hotels. The development pool concept is to maintain newly developed industrial areas with an average 35% FAR while permitting higher FARs for projects that meet the suggested criteria.

Industrially zoned properties, which are developed with non-industrial uses, have been evaluated for their traffic impact and their ability to be easily converted into an industrial use. Since hotels, restaurants and some commercial and public facilities can be difficult to convert to an industrial use and do not trigger many peak-hour trips, the potential square footage from these sites has been included in the pool. Square footage from big-box retail and quasi-public uses has not been counted towards the pool due to its ease in conversion to industrial style uses, and the generation of high peak-hour traffic from big-box retail.

Located below is a detailed discussion of these uses and their characteristics.

2. Commercial Uses. Various commercial uses have been constructed in industrially zoned areas including gasoline stations, restaurants, and retail uses. While retail uses are subject to the FAR regulations, other commercial businesses such as restaurants and service stations are not. Several options have been identified with regard to how these non-industrial sites should be counted toward the FAR Development Pool. Staff supports Options I and III listed below:

1. Option I would credit the pool square footage from industrially zoned properties occupied by commercial uses. The total amount of potential building square footage at the maximum FAR (typically 35%) would be added to the pool. Similar to hotel and lodging facilities, if a commercial site were later converted to an industrial use, the amount of potential square footage for that site would be subtracted from the pool.

Example: A 100,000 square foot industrially zoned site is developed with a 20,000 square foot retail commercial building, the full 35,000 square foot potential building area for the site would be added to the FAR development pool.

Option I would credit the pool 1,637,052 square feet.

2. Option II is to add the difference between the potential square footage of a site at the maximum FAR and the existing square footage of the commercial use on the site to the FAR Development Pool.

Example: To illustrate this option, consider the above example with the 20,000 square foot commercial building. In this option, 15,000 square feet, which is the difference between the potential industrial building area and the existing building area for the subject property [35,000 - 20,000 = 15,000], would be added to the pool. If, in the future, the subject site were redeveloped as an industrial use, 15,000 square feet would be subtracted from the pool.

Option II would credit the pool 1,084,820 square feet.

3. Option III would be used in conjunction with Option I or Option II. The proposal is to credit the pool with square footage that can only be used as commercial space. In this scenario, "big box" retail facilities (e.g. Costco and Fry’s) would not be included in the development pool. Big box retail attracts a substantial number of vehicles from outside the local service area and is therefore high peak-hour traffic generators similar to industrial uses. In addition, these large buildings (typically over 100,000 square feet in area) can be easily converted to warehouses.

Option III would subtract 287,805 square feet from the available pool.

In terms of what constitutes a floor area ratio, the Sunnyvale Municipal Code defines this term as the gross square footage of a building divided by net lot area, expressed as a percentage. Areas devoted to covered parking are not counted in the FAR calculation. Net lot area accounts for right-of-way dedications, utility easements and other encumbrances prohibiting potential building square footage.

There are two ways to determine the amount of floor area that should be deducted from the pool. There is the total additional FAR above 35% and the effective FAR above 35%. Staff has adopted the term effective FAR to describe the resultant FAR that excludes certain non-employee generating square footage from industrial buildings (cafeterias, recreation facilities, training rooms for employees, etc.) consistent with the City's Housing Mitigation Policy. Council has encouraged higher FAR sites to include on-site facilities that minimize mid-day automobile trips and support TDM measures. In addition, the effective FAR for some projects was calculated on gross lot area because the required street dedications would be required regardless of the development at that site.

In the study session of January 10,2000, the Planning Commission suggested that total additional floor area be subtracted from the pool, as opposed to the effective floor area. This option reduces the available pool by an additional 144,948 square feet.

The FAR Development Pool will be administered and managed by the Director of Community Development. The intent is to establish a relatively simple reporting system, providing up-to-date information with a minimum of staff time necessary for maintenance of the system.

As major proposals (e.g. projects with a FAR greater than permitted by right in the zoning district and therefore requiring a Use Permit) are submitted for City review, the status of the Pool would be forwarded to the appropriate review authority (e.g. Planning Commission, City Council). This information would include the amount of floor area for the subject proposal and the remaining square footage available in the Pool.

If a major development proposal is approved, the amount of additional square footage (above what would otherwise be allowed) would be deducted from the FAR Development Pool.

Square footage of non-industrial uses (such as restaurants, hotels, etc.) which previously counted toward the FAR Development Pool will be deducted if these sites convert to industrial uses. Similarly, square footage of newly constructed non-industrial uses would be added to the FAR Development Pool.

Community Development staff will provide the Planning Commission and City Council with the status of the industrial FAR Development Pool on an annual basis as part of the Community Condition Indicators Report.

Given the above discussion regarding the FAR Development Pool and its administration, staff calculates 4,023,562 square feet of development was available at the time the pool concept was adopted by City Council (June 1999). Since that time, three projects have been approved and are listed in the table below. In addition, staff recommends that the Menlo Equities project, approved in March 1999, be subtracted from the pool.

After accounting for the above project subtractions in total additional FAR above 35% from the FAR Development Pool, the current balance is:

The staff report for this project was posted on the City of Sunnyvale’s Website and a copy of the report was provided at the Reference Section of the City of Sunnyvale’s Public Library and mailed to the Chamber of Commerce. The Agenda was posted on the City of Sunnyvale’s Website and recorded for SunDial. Staff also met with the Planning Commission in a Study Session on January 10, 2000 and received initial comments. The Commission considered the item on January 24, 2000 and voted 4-0-3 to support the staff recommendation.

1. Adopt the FAR Development Pool as described and subtract the total additional floor area above 35% from the pool. (Planning Commission)
2. Adopt the FAR Development Pool as described and subtract the effective floor area above 35% from the pool.
3. Modify the structure or administration of the FAR Development Pool.

Alternative 1, as per Planning Commission’s recommendation.

Prepared by:

Trudi Ryan
Planning Officer

Reviewed by:

David S. Boesch
Director, Community Development

Approved by:

Robert S. LaSala
City Manager

Attachments:

1. Land Use Maps of Industrial Neighborhoods with data tables including each parcel
2. Minutes from the Planning Commission Meeting on January 24, 2000.