REPORT TO COUNCIL
SUBJECT
Title
Study Session on the Related Santa Clara Development project, located at 5155 Stars and Stripes Drive, and the proposed amendment to the Master Community Plan to Introduce an Additional “Scheme C” Land Use Option by the developer Related Santa Clara, LLC.
Report
BACKGROUND
The Related Santa Clara Development, formerly referred to as "City Place," is a phased development of approximately 240 acres of City-owned land located at 5155 Stars and Stripes Drive. The site currently consists of vacant parcels, previously housing a municipal golf course that ceased operation in 2019, restaurant and banquet facility, a closed landfill site, and the City’s BMX Park.
The project was initially approved in 2016, when the City Council certified the Environmental Impact Report (EIR) and adopted the Master Community Plan (MCP) for the site. Envisioned as a vibrant, mixed-use urban center, the approved development includes up to 9.16 million square feet of office, residential, hotel, and retail space, to be constructed over seven phases. These phases encompass infrastructure improvements, public open space, new roads, and utilities. Strategically situated near Levi’s Stadium, California’s Great America theme park, the Santa Clara Convention Center, and the light rail corridor, the site is well-positioned to become a major regional destination.
Since the project's approval in 2016, progress has been made toward implementing the development. The City and Developer have worked collaboratively to pursue the necessary permits, entitlements, and agreements to facilitate construction. Key approvals include the Development Area Plans (DAPs) for Phases 1 and 2, which were approved in 2020, as well as a comprehensive suite of agreements addressing topics such as traffic, infrastructure, and public services. Additionally, the City and Developer have addressed the environmental considerations, including executing a Landfill Post-Closure Operations and Management Agreement in 2020, as the site contains a closed municipal landfill, which is managed by the City. The Developer has also undertaken key early infrastructure activities, including road extensions, demolition of obsolete structures, and construction of a temporary fire station to support public safety during development. In December 2022, the developer Related took down Phase 1 on Parcel 5 and entered into three ground leases with the City for its first phase, initiating rent collection and signaling tangible advancement toward build-out of the development.
Since 2020, the shifting economic conditions-such as construction costs, financing challenges, and evolving market demands-have influenced the timing of development. In response, Related Santa Clara, LLC, the project applicant, submitted a request in January 2024 to amend the MCP. The proposed amendment introduces a new land use concept, "Scheme C," which reconfigures portions of the site to respond to current economic realities. Specifically, Scheme C proposes light industrial uses for Parcels 1 and 2 in the northeastern area of the site, while increasing office density within Parcel 4, the City Center. Importantly, the amendment retains the project’s overall square footage cap of 9.16 million square feet, preserving the scope of the original vision while adapting to current market conditions.
DISCUSSION
The study session will be guided by the following agenda:
1. Overview of the Related Santa Clara Project
a. Current Parcels and Phases
b. Project History & Timeline
2. Review of Existing Entitlements
3. Overview of Proposed Entitlement Amendments
4. Review and discussions on the terms of the project Development Agreement (DA)/Disposition and Development Agreement (DDA)
5. Current Economic Conditions
6. Fiscal Analysis
This agenda is designed to provide a comprehensive overview of the project, including its background, existing entitlements, and proposed modifications to the Master Community Plan (MCP). It will also offer context on current economic conditions and present a fiscal analysis of the project with the proposed amendments.
A Planning Commission hearing on the Related Santa Clara project is scheduled for June 11, 2025. Pending a recommendation from the Planning Commission on June 11, it is anticipated that the City Council hearing on the project (i.e., consideration of an Addendum to the Environmental Impact Report; General Plan Amendment; Master Community Plan Amendments; Development Agreement and Disposition and Development Agreement Amendments) will be scheduled in July.
This study session provides an important opportunity for the City Council and the public to review and discuss the overall project scope, economic and fiscal considerations, and potential impacts in advance of formal action and provide general feedback to staff.
For additional background and documentation on the Related Santa Clara Project, including the MCP, DA, DDA, and the Proposed Amendment to the MCP please visit the following page: https://www.santaclaraca.gov/business-development/related-santa-clara and click on Planning and Project Specifications.
ENVIRONMENTAL REVIEW
The action being considered for this study session does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(5) in that it is a governmental organization or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
There is no fiscal impact associated with the preparation of this report or with the study session.
COORDINATION
This report was coordinated with the City Manager’s Office, Community Development Department, and City Attorney’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
Note and file the report on the Related Santa Clara Project, located at 5155 Stars and Stripes Drive, and the proposed amendment to the Master Community Plan to introduce an additional scheme land use option
Staff
Reviewed by: Elizabeth Klotz, Assistant City Manager
Approved by: Jovan Grogan, City Manager