SUNNYVALE APPROVES DOWNTOWN DEVELOPMENT PLAN
Unanimous vote will allow project sale, construction restart
SUNNYVALE, Calif. – By a unanimous vote, Sunnyvale City Council and Redevelopment Agency (RDA) approved a series of motions that will allow the partnership of RREEF and Sand Hill Properties to purchase the mostly-shuttered Sunnyvale Town Center and begin site redevelopment. While the central mall buildings have been closed for some time, independently-owned Macys and Target have remained open for business. The actions were taken at the Council and RDA’s regular meeting last night (Tuesday, February 6).
“We have taken a giant step forward this evening,” said Sunnyvale Mayor Otto Lee, following the meeting. “RREEF and Sand Hill, working with City staff, have brought us a project that both meets the requirements of our Downtown Specific Plan, yet moves well ahead of the plan proposed by the previous developer. This is an exciting project that will move us closer to the vibrant downtown Sunnyvale wants and deserves. I am very pleased my fellow Councilmembers saw fit to unanimously endorse this key development.”
The project came to a halt in early 2006 when developer Fourth Quarter Properties ceased work on the site after razing a parking garage, the first step in the demolition work. The City found Fourth Quarter in breach of their contract and, late last year, began to move to take over the project. That’s when Fourth Quarter proposed selling the project to a joint venture between RREEF, a global financing organization, and local developer Sand Hill Properties.
In December 2006, RDA gave preliminary approval to the proposed transfer, but in order to complete the sale, Council had to approve several documents related to the proposed new project. A Special Development Permit for the site plan, design and use approvals for the construction of up to 1 million square feet of commercial space – including a multiplex movie theater – along with 275,000 square feet of office space and up to 292 housing units, was approved by a unanimous vote.
The RREEF/Sand Hill development team also asked Council for permission to file a request for a General Plan amendment that would allow construction of an onsite hotel. With another unanimous vote, the request was approved, paving the way for the developers to make the formal request for the plan amendment.
Perhaps the most significant action was the unanimous approval of the Amended and Restated Disposition, Development and Owner Participation Agreement, known as the ARDDOPA. This is the document that established much of the relationship between the developer and the RDA. Unlike the original DDOPA signed with Fourth Quarter, the ARDDOPA includes substantial penalties – ranging from $1,000 a day to more than $11,000 per day – for missed milestones during construction.
The final action at the meeting was another unanimous approval of the construction mitigation plan. Following both community meetings and specific mitigation meetings held in downtown to discuss mitigation needs, the required plan was submitted by the developer. The mitigation plan outlines procedures the developer will use during demolition and construction to minimize the impact of noise, dust, traffic and other project-related issues on homes and businesses near the redevelopment site.
Regularly updated redevelopment project information from the City is available on the Web at downtown.inSunnyvale.com.