SUBJECT: Sunnyvale Redevelopment Agency/City of Sunnyvale/M-D Downtown Sunnyvale: Application for a proposal on an approximately 5.8 acre site located at Northeast corner of Mathilda Avenue and Washington Avenue in the DSP/1 (Downtown Specific Plan/Sub District 1) Zoning District (APN: 209-07-010, 013, 019, 020):

Motion 1999-1000 - Special Development Permit to allow construction of three buildings with 460,000 square feet of office and retail use, with ancillary retail uses, and including up to four levels of underground parking.

This project was continued by the Planning Commission from a meeting on March 27, 2000 to allow additional time for the public to review the project report.

The City Council is scheduled to consider a new DDA at a meeting on April 11, 2000. The SDP is also scheduled for City Council review at a public hearing on April 11, 2000.

The Tentative Map for this project has been continued to the Planning Commission hearing on May 22, 2000 and to the City Council hearing on June 6, 2000.

The applicant proposes to construct three new office buildings in the Block One area of the Downtown Specific Plan (Site Plan Attachment 4). The project is generally located on Mathilda Avenue bound on the south side by Washington Avenue and on the north side by Evelyn Avenue. The project would replace the surface parking areas, now maintained by the City, that wrap around from Washington Avenue, across Evelyn Avenue to Frances Street.

The proposed project includes the following:

1. 450,000 square feet of Class A office space plus approximately 10,000 square feet of ancillary retail space.

The three proposed office buildings range from five to six stories. The maximum height is approximately 100 feet including the enclosed equipment penthouse. Within the office building there would be approximately 10,000 square feet designated for retail and restaurant space which would face towards the corner of Washington Avenue and Aries Avenue and a plaza area located at the corner of Evelyn Avenue and Frances Street.

2. Removal of existing downtown surface parking and development of up to four level of underground parking and other surface parking

The proposed office building would displace approximately 429 surface parking spaces. A total of approximately 1,871 parking spaces would be provided in the project area (on-and off-site). The project would include a four-level underground parking structure with 1,600 parking spaces. One hundred new surface parking spaces would be constructed in the vicinity of the site around the Town and Country area and on the site of the existing Hill Building which will be demolished.

Subdivision of five new parcels.

The mitigated negative declaration for this project assumes that the project site will be subdivided. A subdivision map is required to create five lots where four currently exist, including creation of a common lot for the underground parking. The Tentative Map process will include a separate public hearing and will proceed if the SDP is approved.

3. Abandonment of Altair Street between Aries Way and Mathilda Avenue.

A Mitigated Negative Declaration (MND) was prepared for this project. The MND accompanies this report as a separate attachment (Attachment 3). The MND considers all phases of the project and explains which aspects of the project may cause a significant effect on the environment and includes appropriate mitigation. A list of project mitigations is summarized on pages xi-xvii of the Mitigated Negative Declaration and is discussed in more detail in this report under Expected Impact on the Surroundings.

As required by the California Environmental Quality Act (CEQA), the Mitigated Negative Declaration was distributed to appropriate State agencies for review. The document was also distributed to the Bay Area Air Quality Management District and to the Valley Transportation Agency. Notices of the document were also sent to other potentially interested agencies.

Staff is recommending that the Planning Commission and City Council affirm the Mitigated Negative Declaration.

Use: The project would consist of 450,000 square feet of office space and 10,000 square feet of ancillary retail and restaurant space. There would also be 1,600 underground parking spaces developed with the project and an additional 100 surface parking spaces.

The project is located in Block One of the Downtown Specific Plan (DSP) area. The DSP was adopted by the City Council in 1993. The project proposal was evaluated against the land use goals stated in the Downtown Specific Plan and found to be consistent with the following goals:

Site Layout: The project consists of three office buildings which will provide 450,000 square feet of office space and 10,000 square feet of ground floor retail/restaurant space.

The project site is essentially L-shaped and wraps around from the corner of Washington Avenue and Mathilda Avenue to the corner of Agena Way and Evelyn Avenue and extends east along Evelyn Avenue towards Frances Street.

Building One is a five-story office building sited at the corner of Washington and Mathilda Avenue. Building Two is six-stories and sited directly north of Building One facing Aries Way. Building Three is a six-story building located at the corner of Evelyn Avenue and Agena Way. Building Three is a t-shaped structure that extends towards the City's future public plaza. The proposed buildings sit adjacent to each other with approximately 45-50 feet between them.

The arrangement of the proposed buildings is designed to allow existing view corridors from Capella Way, Aries Way and Altair Way to continue both through and between the buildings. Building Three is surrounded by outdoor terraces and extensive landscaping with a tree-lined promenade connecting the future City plaza planned at the corner of Frances Street and Evelyn Avenue. A decorative urban streetscape is designed around and between the buildings.

Parking for the new uses is provided underground. Public parking is also available underground with some supplementary surface parking to be provided in the vicinity of the site. Entrances to the underground parking structure are provided in four locations- Agena Way, Aries Way, Taaffe Street and Evelyn Avenue.

Architecture: The project includes elements which address the requirements of the Downtown Specific Plan and the Master Plan for the North of Washington District. Pedestrian oriented design is incorporated at the ground level. A variety of materials are used in an effort to distinguish the buildings from each other.

Buildings One and Three would be constructed of yellow-beige concrete panels with light off-white concrete trim around the windows and above the doorways to create visual interest and contrast. Building Two would be constructed of a brick cladding with off white concrete trim. Doorway frames in all building would be dark green metal.

There is an extensive use of glass on all three buildings. All glass would be tinted green and would vary in transparency from clear tinted, translucent and spandrel glass. The applicant has designed the buildings with different window patterns to vary the rhythm on the buildings by alternating the use of punched windows with ribbons of windows. The window pattern alternates on each elevation. For example, facing Aries Way, Buildings One and Three display predominately punched windows, while Building Two displays predominately ribbon windows separated by vertical elements of punched windows. The upper stories of each building feature arched windows.

At the upper building levels the applicant has incorporated mechanical penthouses that screen all equipment and visually match the building. The penthouses feature arched glass windows and will be internally lit at night. The project has also incorporated additional interest by setting back the upper story with the use of a columned loggia.

On all three buildings the lobby areas are central to the building and solid glass walls rise up from the building entrances. On Buildings One and Two, there are projecting entry features that are separated from the buildings and project out towards the street. On Building Three there is no freestanding entry feature and the entry was conceived as a transparent element to allow views through to Evelyn. In order to help break the large expanse of Building Three, the upper glass floor of the lobby section has been recessed to help create the appearance of a "bridge" between the east and west "wings".

Of key importance for this project is the pedestrian level of the buildings. A number of City goals and guidelines speak to this.

The applicant has shown a relatively high level of detail at the ground floor especially at the corner of Washington and Mathilda and on Building Three facing the future City plaza. The plans indicate the use of awnings, horizontally scored concrete, arched concrete window caps, divided storefront windows and molding at the second story level. The plans also indicate the use of pedestrian arcades at the south end of Building One.

Staff believes the details at the pedestrian level still warrant modification. Staff has included a condition of approval that would require these features to be brought up another level in detail. Suggested modifications include but are not limited to the following:

• More decorative and interesting molding at the second story level
• Decorative light fixtures brought down to pedestrian level
• Deeper scoring and richer details to the concrete building façade
• Molded window arches
• Keystones at the tops of arched windows
• More detail at the pedestrian level to "entrances" facing Mathilda Avenue
• Pedestrian (walk through) arcades at both ends of Building One
• More weight to the building entrances on Buildings One and Two

The purpose of adding details is to enhance the pedestrian experience and create the illusion of rich masonry work and a traditional downtown feeling although the buildings are being constructed of concrete. The appearance of rich masonry ground floor treatments is necessary to reinforce the landmark status of these buildings.

There is also need to increase detail at the upper stories. Upper floor element such as cornices, arches, columns and window frames can be enhanced to follow details established for the ground floors.

The following Goals and guidelines from the Downtown Specific Plan and the Master Plan for the North of Washington District were considered in the analysis of the project architecture.

Hardscape and Landscaping: The applicant has submitted conceptual landscape plans for the area around the project. The applicant would be responsible for landscaping on the project site including a large pedestrian promenade linking the project up to the future City plaza.

As shown on the conceptual plans, the applicant would enhance the new setting with significant use of decorative paving in all areas around and between buildings. Patterns would change and become more dramatic to announce building entrances. Decorative paving would be continued out into public right of way at the street intersections. In addition to the paving areas the project would be supplemented with planting materials.

The average fifteen-foot setback on Mathilda Avenue would be raised and planted with trees and ground cover in addition to the City's street trees. Where space would allow, the raised planter would wrap around the Washington Avenue frontage with a unique landscape treatment creating a gateway feature at the corner of Washington Avenue and Mathilda Avenue.

The areas between buildings would also be landscaped using a combination of decorative paving, raised planters and tree materials.

A key feature would be the pedestrian promenade located between building three and the future City Plaza. This area is also shown conceptually and final paving materials and designs will require coordination with City designers to create a cohesive environment and in order to create the "outdoor room" setting as envisioned for the plaza area in the Master Plan for the North of Washington District. Schematically, the project area at the east end of Building Three is shown on the plans to feature linear tree planting which marks pedestrian directions and feature a dining plaza with a fountain surrounded by raised planters.

The applicant would also be responsible for installing streetscape improvements on the project perimeter such as street furniture, special planters, street trees and other Downtown identity elements in accordance with the standards established in the Master Plan for the North of Washington District.

The Downtown Specific Plan and The Master Plan for North of Washington District do not have specific guidelines for landscaping on private projects in the Downtown. It is expected that projects will be designed to coordinate and enhance the streetscape by contributing to the pedestrian environment the City is creating. The following streetscape policies will be enhanced by the project.

The following Guidelines were considered in analysis of the project landscaping.

Parking

Based on a survey conducted for the project's traffic and parking analysis, there are currently 464 parking spaces located on the City parking lots in the project vicinity (i.e. including spaces east and west of the Grand Palace restaurant). As stated in the Mitigated Negative Declaration, there are approximately 429 spaces actually on the 5.8-acre project site.

The applicant is proposing to provide 1,600 underground parking spaces including 1,350 spaces for the new office uses and 250 public parking spaces. In addition, there will be 100 new surface parking stalls developed in the project vicinity. These include 28 spaces on the site if the Hill Building that will be demolished, approximately 30 other surface spaces on the streets around Taaffe/Altair/Aries and approximately 42 spaces on the north side of the Grand Palace restaurant. In addition to the parking spaces being developed with the project, there are approximately 178 other parking spaces in Block One/North of Washington District.

To evaluate the project's parking impacts, the parking demand generated by all uses in the project vicinity (North of Washington District) was compared to the proposed parking supply. In addition to the project, other uses in the vicinity (e.g. Town and Country) contain a total of 88,000 square feet of retail space and 25,000 square feet of restaurant space. The combined future peak parking demand of proposed and existing uses has been estimated to be 1,821 spaces occurring at approximately 2:00 p.m.

The parking ratio for the office project is generally 3.0 spaces per 1,000 square feet of project building area. The City uses a range of parking ratios for office buildings depending on location. The Downtown Specific Plan suggested an office parking ratio of 4.0 spaces per 1,000 square feet (1/250 sf). In industrial zoning districts offices can be developed with parking at 2.0-4.0 spaces per 1,000 square feet of buildings. Freestanding office buildings in other areas of the City typically require 4.4 spaces per 1,000 square feet (1/225 sf). Staff considers the proposed 3.0 parking ratio to be adequate and appropriate for the project. It is within the range used for office buildings throughout the City, and the project benefits from proximity to a major transportation hub (Caltrain/VTA). The project also benefits from a Downtown location where people will typically park once and combine trips by walking between nearby office, restaurant and retail uses.

In addition to the permanent 250 public parking spaces in the project, 320 additional underground office parking spaces will be made available for use by the public during weekends and evenings. The end result is a net reduction of 79 daytime parking spaces and a net gain of 241 evening and weekend parking spaces. Based on the table above, the project and vicinity will have adequate parking to meet daytime demand.

The following Guidelines were considered in analysis of the project parking and circulation.

The City General Plan contains policies that establish a baseline level of service (LOS) standard of "D" for City intersections, and "E" for regionally significant intersections; e.g. those identified as significant to the regional Congestion Management Program roadway system. The City also has a policy stating that as the City develops, existing levels of service should be maintained wherever possible or reasonably feasible, even if existing LOS is above the baseline standard.

For the Block 1 project, twenty-seven signalized intersections were studied for overall intersection level of service impacts, including nine CMP intersections. The study found that the proposed project will cause one violation of City’s LOS maintenance policy in the project condition, and five violations of City LOS maintenance policy in the cumulative condition (project traffic + ambient growth in traffic at project buildout).

City policy calls for any level of service change to be evaluated, and mitigation required if reasonably available, e.g. cost effective, physically possible, etc. Intersection LOS changes, and proposed mitigation are summarized below:

The mitigation for the change in level of service at Evelyn Avenue and Agena Avenue would be to add a second northbound left turn lane to maintain level of service "A." However, peak hour northbound left turn lane volumes do not approach the capacity for even a single turn lane. The cost to add a second lane for a minor and unnecessary capacity improvement is not warranted.

Maintaining levels of service at Sunnyvale-Saratoga/Fremont, El Camino Real/Mathilda, and Evelyn/Mary would require the addition of turn lanes in locations that require significant property taking, business relocation, etc. Staff does not believe this is warranted, and may not be physically feasible. However, levels of service will remain above the City’s baseline LOS policy without mitigation.

In the case of the Sunnyvale-Saratoga/Remington and El Camino Real/Fair Oaks intersections, the City’s General Plan lists feasible projects to improve these intersections to accommodate future traffic. Staff recommends a fair share financial contribution by the project developer towards future construction of these planned projects.

Congestion Management Program LOS standards are not violated by the project.

A level of service impact is also realized at the intersection of Mathilda Avenue and Washington Avenue with the addition of project traffic and future traffic. In the PM peak hour, level of service is projected to fall below the City’s baseline standard of LOS "D."

The TIA also includes a CMP-required turn lane queue spillback analysis. Queue spillback analyses investigate the design capacity of turn lanes versus the anticipated volume of traffic using the turn lane. This tool allows quantification of the degree that traffic spilling back out of a turn pocket would block through lanes. The analysis found that Mathilda Avenue at Washington Avenue currently experiences queue spillback on the southbound left turn approach, which will be exacerbated by the addition of project and future traffic.

The City General Plan includes a project to widen this intersection to accommodate anticipated growth in the downtown, and design work has been initiated on this project. This project will maintain LOS above the City’s baseline standard. Staff recommends a fair share financial contribution by the project developer towards future construction of these planned projects.

While the widening project will maintain overall intersection level of service, it will not fully resolve the queue spillback issue. This issue speaks to the inherent difficulty of access to the downtown from Mathilda Avenue due to the proximity of the Caltrain overhead to the primary downtown access point, Mathilda/Washington. The overhead prevents increasing the southbound left turn pocket length. Queue spillback, particularly in the midday and evening peak hours, is of concern due to the potential effects on southbound Mathilda Avenue throughput. Excessive spillback will reduce the through capacity of one lane of traffic on southbound Mathilda at these critical times.

To address this issue, staff has investigated a potential project to construct a loop ramp from the Caltrain overhead from southbound Mathilda to eastbound Evelyn. This project appears to be feasible at a reasonable cost, and City owned property is available. This project would significantly improve access to the downtown, and would resolve the queue spillback issue. Staff recommends a fair share financial contribution by the project developer towards future construction of this project. The contribution would be based on a 7.1% of impact based on 2 vehicles added to the queue and a cumulative total of 28 vehicles in the queue in the p.m. peak period.

The CMP TIA Guidelines also call for freeway capacity to be studied. Segments of Route 280 and 101 were examined to determine if a significant amount of traffic would be added by the project. The VTA defines significant as the addition of 1% of traffic volume. The TIA concluded that the proposed project would not add a significant amount of traffic to area freeways, and no further analysis is required.

Washington Avenue east of Mathilda Avenue, Charles Avenue, and Florence Avenue were evaluated for potentially significant increases in traffic. This analysis takes into account existing traffic volumes and calculates a percentage increase in traffic due to the proposed project. Street character, not capacity, is typically the primary neighborhood traffic issue. Measures have been established to characterize when traffic volume increases will be recognized by residents (typically a 15% increase in traffic volumes).

The TIA found that anticipated traffic volume increases on these streets due to the project would not be readily noticeable to residents.

Site circulation analysis focused on driveway access, queuing space and geometry. A left turn pocket is proposed on westbound Evelyn Avenue to serve the project, and driveways are proposed on all project frontages except Washington Avenue. The study found that queue space and lines of sight for driveways will be adequate, but that southbound left turns at the unsignalized intersection of Frances Street at Washington will experience additional delay due to the addition of project traffic, particularly in the evening peak hour. Traffic signal warrants are not met at this intersection, however. The study further evaluated the proposed roadway geometry on Washington Avenue and recommended no changes.

The study does recommend restricting right turns on red lights at Agena Way and Evelyn due to a sight line issue with the Mathilda Avenue Caltrain overhead supports. Staff is also recommending modification of a loading dock on the Agena Way frontage to eliminate the need for backing movements. (Condition of Approval No. 27)

Project on-site circulation primarily occurs below ground in the parking structure. Access to the structure would occur at four locations. There is one entrance on each - Mathilda Avenue, Evelyn Avenue, Aries Way and Taaffe Street. At project completion, the underground parking structure will be interconnected and cars will be able to circulate through the entire structure and enter and leave from any of the four access points. Vehicle circulation in the parking garage was evaluated and found to meet standards. The study recommends review of the location of compact parking spaces for potential conflicts when used by non-compact vehicles.

Other areas of impact that were assessed include transit demand, and effects on bike and pedestrian facilities. Transit facilities have sufficient capacity to serve projected demand, and a comprehensive sidewalk/plaza system is proposed. The study notes that the Bicycle Opportunities Study identified Evelyn and Washington Avenues as potential candidates for through lane removal to provide bike lanes, based on current traffic volumes. Project traffic will increase traffic volumes on these two streets above the Bicycle Opportunities Study criterion for lane removal.

The applicant has submitted a transportation demand management plan (TDM). The City typically requires a TDM plan for projects that are requesting to develop above maximum allowable floor area ratios. The proposed project is not requesting development above what is allowed under the Downtown Specific Plan, however, a voluntary TDM plan has been submitted as a good faith effort to support the City's trip reduction goals (See Separate Attachment 9). Since the program is voluntary, staff is not recommending fines or penalties for this program.

The TDM includes the following measures to encourage trip reduction:

• 15% trip reduction goal
• Parking management (reduced parking ratio to encourage alternative modes of transportation)
• Transit subsidy program
• Transportation information kiosks
• Designated carpool and preferential parking
• Electric vehicle charging
• Showers and locker facilities
• Bicycle storage per VTA standards
• Guaranteed ride home program
• Transportation coordinator and employer contacts
• Annual progress report to the City

In addition to these project specific measures, the project also benefits from a location that is convenient to the following services:

• Caltrain (directly adjacent)
• Greyhound (directly adjacent)
• Altamount Commuter Express via VTA shuttles
• VTA light rail transit
• VTA bus service (directly adjacent)

Bicycle lanes are available for bicyclist using on Sunnyvale-Saratoga Road and Reed Avenue. Major fiberoptics lines are available near the project and can increase the opportunities for telecommuting.

Easements/Undergrounding: All necessary easements and undergrounding requirements will be reviewed and imposed as requirements of the Tentative Map. All work will be completed by the applicant as required by the Public Works Department.

Art in Private Development: Sites over two acres are required to provide art in private development. The approval of a specific artwork is subject to Arts Commission approval. Due to the size of the project, staff is recommending at least four pieces of art visible from the adjoining streets of Mathilda Avenue, Washington Avenue, Evelyn Avenue and Aries Way.

Although the proposed buildings are located close to the street in some cases, art is not limited to statuary and may consists of other types of work and may be applied to the buildings or pavement. Artwork proposed for the Washington Avenue frontage should take into consideration the "gateway" nature of this location.

Tentative Map

The project requires a Tentative Map to create five lots including one common lot for the underground parking. The Tentative Map will be reviewed at a separate public hearing. The map will be required to be designed so that each lot of the project can be sold separately. Appropriate easements will be created to allow shared use of the underground parking structure. A utility plan is required to address future growth in the DSP Block One area, and the Tentative Map will address phasing of land subdivision in accordance with the Disposition and Development Agreement to be reviewed and adopted by the City Council.

Development Standards are discussed in this report under the Downtown Specific Plan.

The following goals and policies were considered to determine conformance with the General Plan.

The Downtown Specific Plan contains a number of development standards for the North of Washington District (Block One). Concurrent with the adoption of the Downtown Specific Plan were zoning amendments to implement the provisions of the plan. These amendments provide zoning regulations unique to the Downtown Specific Plan.

The North of Washington District has no designated minimum lot size. The overall size of the project site is 5.8 acres which will be subdivided in phases in accordance with the Disposition and Development Agreement that is adopted by the City Council.

The overall Floor Area Ratio (FAR) adopted in the North of Washington District (all buildings and gross land) is 1.42. This is meant to be an average floor area ratio over the entire block. The private portion of the project site is 4.0 acres. The FAR for this portion of the project is 2.64 (without calculating any street area). Block 1 is 14.8 acres. This project results in an 89.5% FAR enabling additional development of up to 338,195 square feet in Block 1.

The Downtown Specific Plan states that the North of Washington District in combination with the Murphy Station Landmark District is meant to constitute the central place of the downtown. It was envisioned that redevelopment of the areas north or Washington Avenue will serve as a catalyst to revitalization of the remainder of Downtown. The Plan comments that a combination of daytime and nighttime activities, signature architecture and the main plaza are desirable for this area.

North of Washington District (Block 1) includes provisions for a mixed-use development including the following uses: hotel, Class A office, theater, multi-family residential, and retail/restaurant. The project includes 450,000 square feet of Class A office space and 10,000 square feet set aside for retail and restaurant. It is envisioned that a restaurant will occupy the east, ground-floor area of Building Three and will face the future City plaza.

The Master Plan for the North of Washington District states that this district would accommodate up to 450,000 square feet of office as well as other uses.

The Plan allows a maximum of 125 feet (9 stories) for office buildings as the highest structure in the North of Washington District with buildings progressively reducing in height to 36 feet (3 retail stories) at Murphy Avenue. The project buildings range in height from approximately 86 feet to 100 feet and are 5 and 6 stories high.

Setbacks for the area are discussed in both the Downtown Specific Plan and The Master Plan for the North of Washington District. All structures are required to be built up to the setback line (build-to line). Office buildings fronting onto Mathilda Avenue should demonstrate some variation in building setback to alleviate a "corridor" effect. In accordance with the Plan, the "build-to" line for Mathilda is 15 feet. A zero setback is recommended for the rest of the North of Washington District.

The project is built to a zero setback on Aries Way. On Evelyn, the project ranges in setback from approximately 7 feet to 60 feet. On Evelyn the building jogs towards and from the street to create landscape space that adjoins and leads to the City plaza and to accommodate the curve in the roadway.

On Mathilda Avenue the buildings vary in setback from approximately 5 feet to 30 feet to accommodate the angle of Agena Way. The average setback is approximately 17 feet.

Staff believes all of the setbacks are generally in conformance with what was envisioned for the North of Washington District. The varied setbacks can be approved through the SDP process.

In accordance with the Downtown Specific Plan, the North of Washington District is regulated by Planned Development Zoning, within which a development plan is approved on its own merits as to building lot coverage. There is no maximum coverage standard adopted for the project site. Building coverage for the 5.8-acre site is approximately 36%.

The Downtown Specific Plan states that building architecture within the North of Washington District will be strongly influenced by the first buildings planned and constructed within this block. The plan also states that architecture shall be coordinated with a master plan, which includes architectural design guidelines. The Master Plan for North of Washington District was approved in concept in February 1999. This project has been reviewed in accordance with the goals and design guidelines of the Master Plan as discussed above. As conditioned, for additional details, the project will be consistent with the design guidelines stated in the Master Plan.

In accordance with provisions of the California Environmental Quality Act (CEQA) a Mitigated Negative Declaration was prepared for this project. The Mitigated Negative Declaration accompanies this report as a separate attachment. The Mitigated Negative Declaration considers all phases of the project and explains which aspects of the project may cause a significant effect on the environment and includes appropriate mitigation. A list of project mitigation is summarized on pages xi-xvii of the Mitigated Negative Declaration.

The Mitigated Negative Declaration identifies eight areas of potential significant impacts and details required mitigations for each impact. The applicant has agreed to the mitigations, and staff is recommending affirmation of the Mitigated Negative Declaration.

Detailed discussion of project impacts and mitigation measures is found in the attached Mitigated Negative Declaration. In summary, the Mitigated Negative Declaration identifies the following potentially significant impacts:

Special Development Permit

In order to approve a Special Development Permit, either of the following findings must be made:

Staff was able to make the required Findings for the SDP. The justifications are located in Attachment 1.

Conditions of Approval

As part of the review process, staff may recommend Conditions of Approval be placed on an application. These conditions clarify or modify the applicant's proposal in order to meet requirements imposed by the Municipal Code, policies and standards set forth by the General Plan, Special Plans and the City Council and other specifications that staff believes will enhance the visual character and/or add greater diversity to the City. The recommended Conditions of Approval are located in Attachment 2.

• Staff is recommending approval for this project based on the Findings (Attachment 1) and subject to the Conditions of Approval (Attachment 2).

This property is located in the City’s Redevelopment Area and is currently used for public parking. Sale of the property is an independent action from the approval of a Special Development Permit.

Development of the site as a privately owned office and retail use would place the property on the tax rolls, with the potential for additional taxes (over development in a non-redevelopment area) associated with the tax increment allowed under the terms of the redevelopment plan.

This office project is a cornerstone for other redevelopment activity in the downtown area, including the Redevelopment Area. It may serve as a catalyst for other redevelopment efforts resulting in additional increases in property taxes.

New development will require city services. These services can be provided by fees and taxes associated with the project. Typically this type of development will also provide funds to the city’s general fund to support services throughout the community.

Development and maintenance of the city plaza and maintenance of the new underground public parking will have a cost impact as well. Development of this site and other downtown development will help support these services.

Notice of the Negative Declaration and the public hearings for this project were published in the Sun newspaper and posted on the site. Expanded mailing included property owners within 1,000 feet of the project site, the Downtown Resources Group, Downtown merchants, and tenants of the residential building in Block 1.

The Mitigated Negative Declaration was sent to the California State Clearinghouse and distributed to required State agencies. The Mitigated Negative Declaration was also sent to The Bay Area Air Quality Management District and the Santa Clara Valley Transportation Authority. Notice of the Mitigated Negative Declaration was also sent to a list of potentially interested regional agencies.

The staff report was prepared and sent early to the Planning Commission, the City Council and interested members of the public. It was made available on the City's web site.

The Planning Commission received three letters requesting continuance of this project. The letters are attached (Attachments 7, 8 and 10). In response, the Planning Commission continued the project from the meeting of March 27, 2000.

A report of other meetings and activities related to the project that occur prior to the public hearings will be provided by staff at the hearing.

1. Affirm the Mitigated Negative Declaration and approve the Special Development Permit as conditioned.
2. Affirm the Mitigated Negative Declaration and approve the Special Development Permit with modifications.
3. Affirm the Mitigated Negative Declaration and deny the Special Development Permit.
4. Do not affirm the Mitigated Negative Declaration and direct staff as to where additional environmental analysis is required.

Alternative 1