REPORT TO CITY COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute Agreements with CRE-GS Freedom Circle Phase I Owner, LLC for the Construction of Park Improvements and the Maintenance of the Park Located at 3905 Freedom Circle at the Developer’s Sole Cost
Report
BACKGROUND
Santa Clara City Code Chapter 17.35 requires new residential development to dedicate parkland and/or pay in-lieu fees. Greystar Real Estate Partners submitted an application (File No. PLN2017-12516) to the City for a General Plan Amendment from High-Intensity Office/R&D to High Intensity Mixed-Use and a rezoning to Planned Development (PD) to allow for a new residential mixed-use development (Project).
The City Council approved the General Plan Amendment and rezoning at a hearing on June 7, 2022. The Project area includes 13.3 acres comprising two parcels (APNs: 104-40-021 & 104-40-036) that are bounded by Freedom Circle, Mission College Boulevard, Highway 101, and San Tomas Aquino Creek. The Project site is part of the larger Freedom Circle Focus Area, which was approved prior to the approval of this project.
The Project proposes the construction of 1,079 apartment units and will meet its parkland dedication requirements through:
• Development of an 87,728 square foot (2.014 acres) public park with a connection to the San Tomas Aquino Creek Trail;
• Installation of approximately 1.922 acres of private recreational amenities; and
• Payment of in-lieu fees totaling $21,455,673 for the remaining balance.
The City Council approved the Public Park Updated Schematic Design on November 4, 2025 (Attachment 1), consisting of:
• A ½-acre natural grass field
• A landscaped and furnished quiet, park-like area
• Playground for children ages 2-5 and 6-12
• A basketball court
• A family picnic area with tables and barbeques
• A bocce court
• An enclosed off-leash dog area with separate areas for small and large dogs
• Pathways, trees, and landscaping
• A connection to the San Tomas Creek Trail
• Twenty off-street parking stalls & public restrooms in Building B
The park will be dedicated to the City in fee title once the improvements have been inspected and accepted by the City. The developer will construct all public park improvements in accordance with the City’s design criteria and standard specifications and will maintain the park, in perpetuity, following dedication.
DISCUSSION
The City and CRE-GS Freedom Circle Phase I Owner, LLC (“parties”) negotiated the following:
Parkland Dedication Agreement (Attachment #2). This agreement sets the terms and conditions for the construction of the improvements and acceptance of the park according to the City Council approved schematic design. Key provisions of the Parkland Dedication Agreement include:
• Construction of the park improvements at the developer’s sole cost in accordance with Council-approved park updated schematic design;
• Installation of 1.922 acres of private recreational amenities;
• Transfer of title to the City of a 2.014 acre park; and
• Payment of Mitigation Fee Act fees in the amount of $21,455,673 for the remaining obligation.
The development project consists of three residential buildings (Buildings A, B, and C). Park improvements will be completed in two phases. Park Phase 1 will be completed with the first of Building B or C and will be used temporarily as a private park by project residents. Park Phase 2 will be completed when both Building B and C are complete. Once both Park Phases are complete, the full park will be offered to the City for dedication. The construction of Building A will not include any park improvements, as such only in-lieu fees will be paid in connection with Building A. Consistent with the City’s regular practice, all park improvements must be inspected to ensure conformance with approved plans and ultimately accepted.
Park Maintenance Agreement (Attachment #3). This agreement sets the terms and conditions for the maintenance of the park. Key provisions of the Park Maintenance Agreement include:
• Developer shall be responsible to provide the labor, supervision, supplies, materials, equipment, and any and all other tools and labor necessary to maintain and/or repair the park in accordance with City standards as defined in Exhibit D of the Park Maintenance Agreement;
• The obligation for maintenance services shall begin on the date the title for the park parcel transfers to the City and continues in perpetuity until terminated upon mutual written consent of the parties, the date the park parcel ceases to be a publicly owned park, or the park site is demolished and not rebuilt; and
• Periodic meetings and reviews, upon City’s request, to inspect and review the maintenance services provided.
Both parties acknowledge that, during the maintenance term, the park will remain a public park operated, controlled, and managed solely by the City, with hours of operation determined by the City.
Please note, staff is requesting Council authority to finalize negotiations and execute the Agreements. A few terms remain under negotiation, including the appropriate indemnity provisions and the remedies available to the City if the developer defaults on its maintenance obligations.
ENVIRONMENTAL REVIEW
The impacts of the Greystar project, including the Original Plan, were analyzed in an Environmental Impact Report (EIR) that was prepared for the Freedom Circle Focus Area and Greystar General Plan Amendment (case file PLN2017-12516) in accordance with the California Environmental Quality Act (CEQA). The EIR and Notice of Availability were circulated for a 45-day period from November 5, 2021, to December 20, 2021, in accordance with CEQA requirements. The EIR indicated that the development of the Greystar Project would contribute to an increase in demand for parkland, but that the impact would be mitigated to a less-than-significant level with the payment of in-lieu fees and the provision of dedicated parkland as depicted in the Original Plan. The EIR incorporates project-specific conditions into the Mitigation Monitoring and Reporting Program (MMRP) requiring this mitigation. As the proposed Park plan would result in the same amount of land dedicated to the City as under the Original Plan, the proposal would not result in any new significant environmental effects or increase the severity of any previously identified effects. The EIR did not identify any secondary impacts associated with park construction, and the Park layout changes are unlikely to present any difference in the impacts resulting from construction.
FISCAL IMPACT
There is no fiscal impact to the General Fund for the current action, other than staff time budgeted in the Parks & Recreation Operating Budget for minor administrative tasks related to the operation of the public park as part of the City’s overall park system. The developer will construct the public park improvements, provide a park sign, and maintain the park for the life of the park, all to City standards and at no cost to the City.
COORDINATION
This report has been coordinated with the Community Development Department, the Finance Department, the City Attorney’s Office, and the City Manager’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute the Parkland Dedication Agreement and the Park Maintenance Agreement with CRE-GS Freedom Circle Phase I Owner, LLC with such minor, non-substantive changes and amendments that may be necessary to implement the parkland dedication requirements for this project, in final forms approved by the City Attorney.
Staff
Prepared by: Gina Saporito, Staff Analyst
Reviewed by: Damon Sparacino, Director, Parks & Recreation
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. RTC #25-1037 Action on the 3905 Freedom Circle Public Park Updated Schematic Design
2. Draft Parkland Dedication Agreement with CRE-GS Freedom Circle Phase I Owner, LLC
3. Draft Park Maintenance Agreement with CRE-GS Freedom Circle Phase I Owner, LLC