• Downtown Development


Downtown Development
456 W. Olive Ave.
Sunnyvale, CA 94086
(408) 737-4900

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Downtown Development


Downtown Development


Project Update

In September 2016, the sale of the project to STC Venture LLC was completed. STC Venture LLC has resumed construction starting with demolition of the steel framing in the central Redwood Square block.

What is planned for the project?

The City’s current land use approval (Special Development Permit) continues to reflect the project as it was originally approved in 2007. In addition to the existing Macy’s and Target stores and two office buildings, the project includes retail, office and restaurant uses; a multi-screen movie theater with up to 2,950 seats; a hotel with up to 200 rooms; 292 residential units; several parking garages; and a central plaza (Redwood Square). Street improvements will also be made such as extending Murphy Avenue through the project site. The City collaborated with STC Venture LLC to update the land use approval and development agreement, which were completed in June 2016. While updated approvals do not change the amount of retail, office and residential uses that were approved in 2007, significant amendments were enacted that will enhance the overall site and ensure the project will meet current standards that were not in place when the original project was approved.
In 2016, the Planning Commission approved modifications to the original project, requiring more stringent green building standards and compliance with the City’s Climate Action Plan, including dust control measures and installation of electrical vehicle chargers. The approval also gives the developer the option to sell or rent the residential units, with an agreement to provide below market rate units within the project. Smart city technology or infrastructure is also required to be incorporated into the project, such as smartphone apps, kiosks, signage and/or Wi-Fi that provides convenient information for downtown customers and workers.

What is happening next?

STC Venture LLC demolished the two-story steel structures just south of Macy’s. The plan is to construct temporary parking and complete landscaping improvements to reopen the Redwood Square Plaza area to the public in the fall of 2017.

The next step is to complete the three residential buildings, containing 198 residential units, and secure tenants for the ground floor retail space. The three residential buildings are located on the southwest corner of Washington Avenue and Taaffe Street, northwest corner of Taaffe Street and McKinley Avenue, and southwest corner of Taaffe Street and McKinley Avenue. This step will include construction of interiors, some architectural modifications to the exterior, including enhanced materials, new forms and a new paint scheme.STC Venture LLC has submitted revised architectural plans for the previously approved 94 residential units on Iowa Avenue. These plans will be considered by the Planning Commission in late-2017.
Also, requests to initiate amendments to the Downtown Specific Plan (DSP) were submitted for City Council consideration in August 2017. If initiated by the City Council, the action authorizes staff to accept an application to study changes to the mix of allowable uses and development standards for the Town Center area (Block 18 of the DSP).

The residential buildings, which will include upgrades to incorporate green building features , are expected to be completed in the winter of 2018.
The ground floor retail shells beneath the residential units are also expected to be completed in 2018. Individual retail tenants would then construct their own tenant improvements before opening, and the timing would depend on the individual tenants.

Construction will commence in 2017 for a ground floor grocery store on the southwest corner of McKinley Avenue and Sunnyvale Avenue. Whole Foods has signed lease for that site and is expected to open in the spring of 2019. The theater, which will be located above the Whole Foods Market, is also planned to open in the spring of 2019.

What is the development agreement related to the Town Center project?

Along with the City’s land use approval, the project was also governed by a development agreement (2010 Amended Disposition and Development and Owner Participation Agreement). It outlined additional project requirements including completing a defined “Minimum Project” within a specified timeframe, constructing, operating and maintaining public improvements, sharing the costs for environmental site remediation, and other developer obligations. The amended development agreement (2016 Modified and Restated Amended Disposition and Development and Owner Participation Agreement) is between the Successor Agency for the Sunnyvale Redevelopment Agency and STC Venture LLC.

The amended development agreement required approval from three agencies. The City Council, acting as the Successor Agency to the former Sunnyvale Redevelopment Agency, approved the amended agreement on June 28, 2016. The Oversight Board for the Successor Agency, which represents the various taxing agencies that receive property tax revenues from the Town Center property (e.g. County of Santa Clara and local school districts), approved the amended agreement on July 21, 2016. The final approval from the California Department of Finance was received on September 2, 2016.

Downtown Sunnyvale Continues to Thrive
Downtown Banners

New businesses now open in Downtown Sunnyvale:

  • Anodot, Inc.
  • Armita Azari Consulting
  • CVS/Pharmacy (Inside Target)
  • Distortion Productions
  • Dr. Samantha Jenning, DC 
  • Elegant Spa And Nails
  • Manage.com Group, Inc.
  • Mousiota LLC
  • SAJJ Mediterranean Restaurant
  • Shangri-La
  • Vitality Bowls
  • Vixen Venom

Downtown Parking Map

    There is plenty of free public parking in Downtown Sunnyvale. View our parking map to find the most convenient location for you.

    Public Outreach

    There are no public meetings scheduled at this time.

    For information on Downtown Sunnyvale projects, call the 24-hour message hotline at (408) 737-4900 or email Downtown Development.


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