SunnyvaleRTC

SUBJECT:

2000-0523 – Moffett Park Specific Plan and Associated Zoning Code Amendments

Resolution Approve the Moffett Park Specific Plan;

Introduction of an Ordinance
Adopt Chapter 19.29 Moffett Park Specific Plan of the Sunnyvale Municipal Code (rec. continue to May 11, 2004)

REPORT IN BRIEF

The revised Moffett Park Specific Plan (MPSP) document and accompanying Title 19 zoning code amendments are the final step of a three-year process for the creation of the MPSP. The first formal approval action occurred on November 11, 2003 when the City Council certified the program Environmental Impact Report (EIR) and adopted General Plan Amendments to create the specific plan boundary and set the level of development intensity. City Council provided guidance regarding implementation measures and directed staff to return to City Council for final approval of the completed Specific Plan. The revised plan was presented to the Planning Commission on April 12, 2004 and was recommended to be approved as revised with a 5-0 vote (two members were absent).

Moffett Park is a unique resource for the city in support of expanding its share of headquarters and major office and research facilities of emerging high technology companies. Moffett Park's intrinsic attributes include its geographical location of practically the center of Silicon Valley, ready access to the rest of Silicon Valley via U.S Highway 101 and State Route 237, and proximity to two international airports serving San Jose and San Francisco. Moffett Park is the only industrial area in the city directly served by light rail transit. The average parcel size is greater than any other industrial area of the city and there are no nearby residential areas to cause land use conflicts in terms of height, floor area ratio, use of hazardous materials, or other industrial operational issues. The market has also acknowledged these attributes by developing numerous Class A office and R&D uses (e.g. Yahoo, Juniper Networks, Network Appliance and Ariba/Interwoven) at intensities greater than 35% Floor Area Ratio (FAR) during the late 1990s. In short, it is an ideal location for both private industry and the City of Sunnyvale.

The City of Sunnyvale's goal, as expressed in the administrative Community Development Strategy document, is to maximize Moffett Park's assets and benefits to the city by encouraging development of Class A office space, corporate headquarters, and research/development facilities of high technology companies. Development of these types of uses will not only allow for growth and retention of existing Sunnyvale businesses, but also enhance Sunnyvale's competitiveness for attracting new companies to the community. The Specific Plan's land use policies are supportive of recent development trends in Moffett Park, as well as balanced with the long term needs of the City of Sunnyvale. The long term needs of Sunnyvale include positive contributions to community character and efficient use of its resources and infrastructure over the long term.

The Program EIR for the Specific Plan evaluated an ultimate buildout level of 24.3 million square feet of development, an increase of 8.7 million square feet above existing conditions in Moffett Park. The ultimate development constraints leading to the 24.3 million square foot level are related to capacity for vehicle access, air quality, and impacts to populations and housing. The transportation improvement projects that provide the additional capacity are included within the recently adopted Transportation Strategic Program (TSP). The two most significant projects that directly benefit Moffett Park are a Mary Avenue Extension (or equivalent access improvement) and a grade separation along Lawrence Expressway.

To realize the goal of full buildout, the Specific Plan has created three zoning subdistricts and a development reserve to efficiently utilize available square footage. Only 18.9 million square feet of the ultimate 24.3 million square foot build-out is assigned to specific parcels in the three sub-districts via the Standard FAR limitation. The remaining 5.4 million square feet is allocated to a development reserve to encourage higher intensity development of targeted uses up to the maximum FAR of the underlying zone. The development reserve will allow the full build-out of Moffett Park to be achieved more quickly due to the efficiencies of permitting development on a first-come first-serve basis for targeted uses.

The three subdistricts are described below (See Attachment D for location):

MP-TOD: This sub-district includes parcels within ¼ mile of an existing light rail station. It permits the highest intensity of development (such as Class A office, R&D and corporate headquarters), under the assumption that proximity to light rail will encourage a larger proportion of workers to commute by transit rather than by automobile. A standard FAR of 50% is permitted, with a maximum allowed FAR of 70%.

MP – I: This sub-district includes all industrial areas beyond ¼ mile of an existing transit station. It permits office, warehouse and general industrial development at a standard FAR of 35%, and a maximum FAR of 50%.

MP-C: This sub-district provides for support commercial services, such as hotels and retail establishments. The allowable FAR is 40%.

In addition to zoning and FAR standards to encourage development, Moffett Park Specific Plan provides for streamlined development permitting processes. The EIR for the Specific Plan will allow conforming development to proceed with the increased certainty of completed environmental review. Projects which do not exceed the standard FAR may typically proceed as a matter of right, with only a staff design review. Projects seeking FARs greater than standard FAR will require a Special Development Permit from the Planning Commission; however, if the project is designed to meet “green building” standards, the increased floor area entitlement may be approved by staff, with only a design review by the Planning Commission.

BACKGROUND

The MPSP was conceived as a Study Issue during 2000 in response to market demands and the City's desire to encourage economic development within acceptable environmental limits. Acknowledging the need and the potential for increased development, the City embarked on a plan with a vision for developing the Moffett Park area as the focus for additional Class "A" office space and Corporate Headquarters.

Public outreach and initial scoping of the environmental review began in Spring 2001. The Draft EIR was circulated for public comment in October of 2002, which coincided with the release of a draft of the Specific Plan. A Final EIR was prepared and distributed in January of 2003. The City Council certified the EIR and amended the General Plan to delineate the MPSP boundary and its intensity of development on November 11, 2003 as the first step in actuating the Specific Plan. The final implementing documents of the plan are before the City Council April 27, 2004.

This final step for implementing the Specific Plan is consistent with and part of the original project evaluated as part of the certified MPSP EIR of November 11, 2003. Findings from the original General Plan Amendment are applicable to implementation of this project component, including the statements of overriding consideration. The MPSP and Zoning Code amendments are subject to the Mitigation Monitoring Program adopted by the Council for the Project of the EIR.

In addition to certifying the EIR and amending the General Plan on November 11, 2003, the City Council also directed staff to finalize the development standards and implementing measures for the Specific Plan within the following parameters:

1. Staff review of Tier I, II and III development applications

2. Create an objective sustainability standard for Tier IV development

3. Require Planning Commission approval of site and architectural plans for development proposals that meet sustainability standards in Tier IV.

4. Require Planning Commission land use, site and architectural plans approval of Tier IV development that does not meet sustainability standard.

5. Allow reservation of the development reserve for seven years with a non-refundable prepayment of 25% of the transportation impact fee.

6. Include reference to VTA pedestrian and bicycle guidelines

Council then added a directive to:

Re-evaluate the level of architectural/design review for major projects and discuss Major Project Review by the Planning Commission and City Council in the analysis and recommendation.

SPECIFIC PLAN DISCUSSION

The primary goals and objectives of the Specific Plan can be summarized as follows:

Diversify City's Economic Base by Encouraging Corporate Headquarters and Research and Development (R&D) Uses
Enhance the City's Regional Prominence and Local Image Through Application of High Quality Site Design and Architectural Guidelines and Standards
Increase Development Potential/Floor Area Ratios
Streamline Development Review
Use Smart Growth Principles/Support LRT and Sustainability
Address Current Transportation Deficiencies
Mitigate Environmental Impacts of Increased Development

Within this framework of encouraging new development the MPSP environmental analysis concluded that there were constraints on the maximum level of development potential. Alterative land use options and intensity levels were analyzed which culminated in a consensus that a reasonable ultimate development level was an additional 8.7 million square feet above existing conditions for a total of 24.33 million square feet. The major development constraints identified in the EIR for this level of development include air quality impacts, traffic impacts, and population and housing cumulative needs. Despite these negative impacts the overall positive impacts to intensifying development in Moffett Park are beneficial to the City and supportive of regional growth patterns as well.

In an effort to fully realize the benefits of the Specific Plan and maximize its development potential in the near term, the Plan creates three zoning sub-districts and a Development Reserve of additional square footage. The MPSP new zoning sub-districts are Moffett Park General Industrial (MP-I), Moffett Park Transit Oriented Design (MP-TOD), and Moffett Park Commercial (MP-C). The basic zoning of the sub-districts provide a framework of allowable uses and development standards appropriate to the level of use and location in Moffett Park. The boundaries of the sub-districts are depicted in Exhibit D. All three districts are distinct in their purpose and support of Moffett Park as a whole.

Subdistrict

Standard FAR %

Max FAR %

MP-TOD

50

70

MP-I

35

50

MP-C

40

40

MP-C: This sub-district provides for support commercial services, such as hotels and retail establishments. The allowable FAR is 40%.

Development Reserve

In addition to the general development standards of the sub-districts, the Specific Plan provides for additional development potential in the form of a 5.4 million square-foot Development Reserve. Properties within the MP-TOD and MP-I are eligible for participation in accessing the reserve. Access to the Development Reserve provides an opportunity for higher intensity of uses on a site specific basis provided certain requirements are met (see Chapter 5.4 for details). The square footage is distributed on a fist-come fist-serve basis and increases the efficiency and likelihood of maximum buildout of the Plan's available total square footage. A Transfer of Development Rights (TDR) program is also available for private property owners to redistribute unused square footage to a donor site.

Development Review and Permitting

A guiding principle of the Specific Plan is to streamline permitting of targeted office, R&D, and high technology uses in an effort to both support and diversify the City's economic base. In addition to encouraging development, the Specific Plan provides for high quality design through development standards and guidelines that ensure appropriateness of use on a site and maintenance of community character. The level of scrutiny for projects through the permitting process is then a balance of ensuring compatibility of the use with the desire for new development in Moffett Park.

Generally, projects can be described as standard development within the parameters of its underlying zoning district or as a higher intensity project requesting access to the 5.4 million square foot Development Reserve. Staff believes that two levels of review are appropriate in Moffett Park to meet the Plan's dual goal of providing appropriate and efficient development tools. Two levels of review will permit development which is compatible with surrounding uses to be reviewed more efficiently through a simplified staff review, while reserving Planning Commission approval for "types of uses" or "levels of use" that may have a higher level of impact on adjacent uses or require careful scrutiny to preserve community character.

Sustainable Design

A major factor in allowing for high intensity development throughout Moffett Park is the ability of the City to address long term sustainable design or green building practices. In accordance with Council's recently adopted green building policies and incentives for higher FAR levels in the City, Moffett Park assumes the leadership position for green building in Sunnyvale. As an option for development requesting access to the Development Reserve, a project applicant may design a Leadership in Energy and Environmental Design (LEED) Certified Level building to obtain their square footage entitlement and only be subject to a Planning Commission design review, rather than complete a full conditional use permit review or the design and use. This option provides more surety to the entitlement process and shortening of permitting timelines. Moffett Park takes green building requirements an additional step beginning in the year 2009. Beginning in 2009, all new development greater than 10,000 square feet is required to meet the design intent of LEED certified building.

Thresholds of Review Alternatives

In response to Council's direction for alternatives for review thresholds last November, staff has identified two potential standards related to community character that may substitute for current practice of Floor Area Ratio (FAR). The substitute options are building height or absolute building floor area. Exhibit "E" lists various Use Permit and Staff Design Review projects and their square footage and height to provide context to this discussion.

Option A Building Height

Consistent with current industrial zoning, development in Moffett Park is proposed to be permitted at a maximum height of 75 feet and requires a SDP to exceed 75 feet (up to a maximum of 125 feet). One option for a height threshold would require Planning Commission review of buildings greater than four stories in height or 65 feet. Most of the small to moderately sized sites are anticipated to be below four stories due to site constraints, building techniques, and economics. The exceptionally sized buildings greater than four stories are anticipated to occur on larger sites. Alternatively, a four story building on a small site would be highly intensive development with structured parking. These exceptionally sized buildings could potentially impact the character of the district and may warrant Planning Commission review regardless of floor area.

The building height threshold could allow for streamlined review for the majority of development in Moffett Park and preserve community input for exceptional projects, thus meeting the intent of the MPSP goals of economic development and streamlined review methods. It is difficult to predict the number of projects at certain heights, but setting the standard at 2-3 stories may require a public hearing for sites that currently have no public hearing requirement because of their low FAR. Too low of a height threshold would then appear to be counter-productive to the goal of streamlining and encouraging targeted development types. Another limitation of height is the indirect relationship to other types or levels of impacts (e.g. bulk, number of vehicle trips, resource consumption, etc.) generated by the uses beyond their physical stature.

Option B Absolute Building Square Footage

Absolute building square footage may be an appropriate trigger of review for community character. Square footage is related to FAR thresholds and may capture the large scale campus/office development that would exceed the standard FAR levels of 35% or 50% for the MP-I and MP-TOD. The major difference would be that relatively intense buildings on small sites would not go to public hearing and relatively low intensity buildings projects on large sites would go to public hearing. An example would be that a 150,000 square foot building within Lockheed Martin's campus is not likely to have the same impacts on character as that of the same building being placed upon small parcel along Java Drive.

Sunnyvale's past experience with development is that smaller sized high intensity FAR projects are more taxing on a project's design attributes than moderate to high intensity development on larger sites due to the site constraints and configuration difficulties of smaller sites. These difficulties in design may warrant greater scrutiny at a public hearing even though, on an absolute scale, the impacts would appear to be less because of the smaller building.

Option C FAR Review

FAR is a relative measure of intensity based upon building square footage in relation to site square footage. Using FAR as the threshold for Planning Commission review is consistent with current citywide practice. Staff recommends that all Moffett Park development requesting to exceed the Standard FAR of the underlying zone require review by the Planning Commission. Industrial zoning throughout the city has a threshold of 35% FAR; however, within the Futures Sites B, C, & E the FAR threshold is 70%, 100%, and 50% respectively. Within Moffett Park the Standard FAR level is recommended at 35% for MP-I and 50% for MP-TOD.

A limitation of this threshold is that relatively larger sites could yield a considerably larger building not subject to Planning Commission review as compared to smaller sites. Although the building size would vary, the relative character of the two hypothetical sites is similar because of each site's own size and the potential size considerations of a single building versus multiple buildings. Massive or exceptionally tall single buildings on a larger site would present challenges to design character that would require careful scrutiny. However, general development standards relating to lot coverage and height limits would diminish these concerns at the staff level. Deviations or variances to height or lot coverage would then require a public hearing on the merits of the request in addition to the design review.

Citywide Thresholds/Recommendation

Throughout the City intensity of uses are permitted through staff review up to a certain FAR level dependent on the underlying zone or use. Once a project exceeds the threshold FAR level (e.g. R-1 zoning 45% FAR, R-2 zoning duplex 55%, M‑3 zoning 35%) a higher level of review authority is required. For consistency throughout the city and for its practical attributes, Staff continues to recommend FAR as the review threshold in Moffett Park.

Three Types of Moffett Park Land Use Permits
Three general types of planning permits will be applicable to changes of use and future development within Moffett Park. The key differences between the permit types are the required degree of CEQA review and the review of the appropriateness of the use on the proposed site. There is a dual hierarchy for the permit types with minor permits reviewed by Director of Community Development (staff) and major permits reviewed by the Planning Commission. Access to the Development Reserve can only be granted through approval of major permit.

I. Miscellaneous Plan Permit (MPP)

The lowest level of review is a staff reviewed MPP without a public hearing. The MPP includes site development issues ranging from outdoor storage/uses and parking analysis to architectural, color, or materials changes to existing buildings. MPPs are generally exempt from CEQA and are used citywide within all zoning districts. MPP decisions are appealable one level to the Planning Commission for a final decision.

II. Moffett Park Design Review (MP-DR)

Design Review is required for all new development and major changes to site layout or architectural design for both existing and "Permitted Uses (P)." The design review permit structure is divided into a Major and Minor level of review by the Planning Commission and Director of Community Development (staff), respectively.

Major permits are defined as development requests to exceed the Standard FAR limitation that utilize the Green Building Option for access to the Development Reserve or use of TDR. Projects that require preparation of a supplemental or project EIR, regardless of FAR level, are also classified as a Major MP-DR.

To date, staff processing of negative declarations is not common in Sunnyvale. However, it has occurred occasionally and is consistent with CEQA requirements. In addition, staff anticipates that negative declarations would be rare with most development proposals exempt from additional CEQA review.

Similar to design review which currently occurs throughout the city, the scope of review for a MP-DR is restricted to site and architectural design considerations, compliance with design guidelines, compliance with development standards, and conformance with the mitigation monitoring program or subsequent environmental documentation mitigation requirements. The decision to approve or deny a major or minor permit may be appealed up one level of approving authority for a final decision.

III. Moffett Park Special Development Permit (MP-SDP)

The MP-SDP is similar to the City's existing Special Development Permit format used throughout the city. This permit is applicable to uses indicated as "SDP" in the Allowable Use Matrix, as well as to permitted uses that request deviations to development standards or request to exceed the Standard FAR limitation. The SDP review includes the considerations of a design review described above and a determination of the appropriateness of the use at the proposed location.

The MP-SDP consists of major and minor permits, reviewed by the Planning Commission and Community Development Director (Administrative Hearing) respectively.

Major permits include development that requests to exceed the Standard FAR limitation and do not utilize the Green Building Option, requests for deviations to green building development standards regardless of FAR, and projects requiring a supplemental or project EIR.

Minor permits are defined as development up to the Standard FAR of the underlying zoning and include associated environmental documentation, such as CEQA exemptions and negative declarations tiered from the Program EIR. Minor MP-SDP permits require that a public hearing be held (Administrative Hearing level) for determination of approval or denial. The decision to approve or deny a major or minor permit may be appealed up one level of approving authority for a final decision.

Tiers of Development Mitigation

In addition to standard development requirements (e.g. setbacks, lot coverage) and design guidelines, development in Moffett Park is subject to the Mitigation Monitoring Program of the MPSP Program EIR. To assist in administration of applicable fees and mitigation requirements of the monitoring program, the terminology "Tiers of Development" was created to differentiate required levels of mitigations for new development. The tier methodology is primarily geared to reflect requirements for office, R&D, and other permitted ("P") uses in Moffett Park (see Section 6.8 MPSP).

The current Tiers of Development reflect existing zoning standards and outline principle mitigation and process requirements for increased development as evaluated within the EIR. Tiers of development are not geographically based. Development within MP-I and MP-TOD could fall anywhere within the range of Tier 1 through Tier 4*. The “Tiers of Development” reflect the intensity of change on a site, and therefore the type of mitigation required for that change.

Tier 1 – Minor changes in architecture, interior, or use

Generally no mitigation
Transportation Impact Fee may be required for change in use

Tier 2 – Additional sq. ft. up to 35% FAR (50% in the Futures E area)

Transportation Impact Fee
Fair Share Infrastructure Costs

Tier 3 – Additional sq. ft. up to 50% FAR outside of Futures E area

Transportation Impact Fee
Fair Share Infrastructure Costs
TDM Program with 20% total trip reduction
Housing Impact Fee

Tier 4 – Development above Standard FAR up to the Maximum FAR

Transportation Impact Fee
Fair Share Infrastructure Costs
TDM Program with additional total trip reduction
Housing Impact Fee
Green Building Incentive available

*Note: Tier 3 is unique to MP-TOD because the November 11, 2003 General Plan Amendment established MP-I 35% and MP-TOD 50% FAR limitations that reflected the previous industrial zoning of Moffett Park, but expanded the geographic area subject to the 50% FAR beyond the boundaries of the former Futures Site "E" 50% FAR. The additional FAR granted by right to the expanded area required additional mitigation measures per the Program EIR thus creating a distinct mitigation tier (Exhibit F). Previous versions of the Specific Plan had also allowed Tier 3 increases of FAR for the MP-I.

Planning Commission Recommendation

Planning Commission considered the revised Moffett Park Specific Plan on April 12, 2004 and voted 5-0 (2 members absent) in support of plan as proposed, including the use of Floor Area Ratio (FAR) as the threshold for Planning Commission review. The Planning Commission is scheduled to review the proposed zoning ordinance amendments on April 26, 2004. Staff will convey the Planning Commission recommendation in the oral report to City Council on April 27, 2004. Staff fully supports the Planning Commission recommendation.

PUBLIC CONTACT

Additional Public outreach conducted since November 11, 2003 included a Planning Commission Study Session open to the public on March 8, 2004. The Public hearing notice was accomplished by direct mailing to affected Moffett Park property owners and building occupants as well as a legal advertisement, including zoning map, in The Sun. The completed revised Specific Plan and staff report were available to the public on April 5, 2004.

FISCAL IMPACT

Staff time for preparation and review of the MPSP and the EIR has been accomplished through operating budgets. A special project was approved to pay for professional services to prepare the EIR and Specific Plan. In addition to City expenditures, financial pledges of funding support from Moffett Park interested parties have been received and more support is expected. The newly instituted Moffett Park land use permits will be added to the fee schedule with an appropriate fee structure to recoup costs of processing applications.

ALTERNATIVES

1. Approve the MPSP in accordance with the Planning Commission recommendation.

2. Approve the MPSP with modifications.

3. Do not approve the MPSP and Zoning Code Amendments and refer the matter back to the Planning Commission with direction to resolve specific issues identified by Council.

4. Continue the public hearing and review of the Zoning Ordinance amendments to May 11, 2004.

Attachments

A. Applicable General Plan Goals, Policies, Action Statements

B. Moffett Park Specific Plan (Distributed April 22, 2004)

C. Draft 19.29 Zoning Ordinance Amendment

D. Subdistrict Zoning Map

E. Table comparing development intensities of recent administrative and public hearing reviewed projects

F. MP-TOD Area Subject to Potential Tier 3 Mitigation Monitoring
G. Planning Commission Draft Minutes of 04/12/04
H. Draft Resolution to Adopt the Moffett Park Specific Plan