REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action on the Initial Study and Mitigated Negative Declaration, Mitigation Monitoring and Reporting Program, General Plan Amendment, Rezone, and Vesting Tentative Subdivision Map (PLN24-00267 and PLN24-00332) for the Property Located at 1400 Coleman Avenue to Allow the Development of 142 Townhouse Units and Associated On- and Off-Site Improvements
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
On May 28, 2024, City Ventures (applicant) filed applications (File Nos. PLN24-00267 and PLN24-00332) to redevelop the subject 3.8-acre parcel (APN: 230-05-021) as a residential for-sale townhouse community “project”, with 142 townhouses and associated on- and off-site improvements.
The subject property is located on the north side of Coleman Avenue and is bounded by government uses (U.S. Citizenship and Immigration Services) to the west, commercial and industrial uses to the north and east, and Coleman Avenue to the south. The Norman Y. Mineta San José International Airport is approximately 500 feet northeast of the project site. (See Attachment 1 for a vicinity map) This project site is located approximately 0.3 miles north of the Santa Clara Transit Center, which is served by Caltrain, Altamont Commuter Express (ACE) train, and multiple Santa Clara Valley Transportation Authority (VTA) bus routes (Rapid 522, 60, 22, 21, 53, and 59), which qualifies as a major transit stop. Therefore, the project site is within a transit priority area as defined in SB 743 (2013).
The subject property currently has a General Plan land use designation of Santa Clara Station Regional Commercial and is within the Santa Clara Station Area Focus Area. Development of the Santa Clara Station Specific Plan is currently underway; however, it has yet to be formally adopted, and therefore it would not apply to the proposed project. The zoning for the project site is Commercial Regional (CR).
Implementation of the project requires the City Council to act on the items listed below. Pursuant to the Santa Clara City Code (SCCC), the Planning Commission conducted a public hearing on August 13, 2025, to make recommendations to the City Council on the following actions pursuant to SCCC sections 18.142.010 and 17.05.300(g):
1. General Plan Amendment from Regional Commercial to High Density Residential.
2. Rezone of the property from Commercial Regional (CR) to High Density Residential (R4).
3. Vesting Tentative Subdivision Map for two-lot subdivision for residential condominium purposes to accommodate a project with 142 townhouses, vehicular driveways, parking, and common and private open spaces.
The project also requires approval of Architectural Review, which will address the demolition of the building, site design and architecture. In accordance with Chapter 18.120, Architectural Review is conducted by the Director of Community Development or designee through a Development Review Hearing process, which is a public hearing. This hearing will occur after the Council decision on the General Plan Amendment, Rezone and Vesting Tentative Map.
Pursuant to state law, anytime a General Plan Amendment is proposed within the Airport Influence Area (AIA) of an adopted Comprehensive Land Use Plan (CLUP), a referral must be made to the County Airport Land Use Commission (ALUC) for a consistency determination. The project was referred to the ALUC on June 30, 2025, and an ALUC hearing on the Project was scheduled for August 27, 2025. ALUC found the project to be consistent with the San Jose Airport Land Use Compatibility Plan and shared standard recommendations for inclusion with the project conditions of approval. They are similar to comments received for other projects in the vicinity of the San Jose Airport, namely FAA airspace review, dedication of an aviation easement, and filing airspace cases for construction cranes.
DISCUSSION
The developer proposes to construct 142 “for-sale” townhouses, spread out in 12 four-story townhouse-style buildings. Each building would contain seven to twenty residential units. The buildings would have a maximum height of 50 feet. Each townhouse would have a one- or two-car garage on the ground floor, with residential units located above. The project includes approximately 0.45-acre common recreational space available for residents, although it is not eligible for credit against the project’s parkland dedication requirement.
The project contains community gathering places throughout the site plan for its residents. At the northeast quadrant of the site, a community garden and an enclosed dog park adjacent to common area landscape will be included. Along the southeast quadrant of the site an outdoor seating area with a shade structure and barbecues will be provided. Lastly, at the center of the site, a landscape common area is planned off the urban streetscape for general community programming.
Considerations
The following summarizes the requests and the key considerations for the project. The Planning Commission staff report includes a detailed analysis of the project and is included as Attachment 2. Project development plans and the Tentative Subdivision Map are included as Attachments 11 and 12, respectively.
General Plan Amendment
Key considerations for a General Plan Amendment include how the project is consistent with the City’s General Plan policies and goals. On balance, the project is consistent with the City’s General Plan, including Land Use policies, Residential Land Use goals and policies, Santa Clara Station Focus Area Plan policies and Transition policies.
Rezone
Similarly, a key consideration for Rezones is whether the project is consistent with the proposed zoning. As shown in the Project Data and Compliance Table (Attachment 10), the project is consistent with the proposed zoning, except for side and rear setbacks and open space requirements. Because the project provides affordable housing consistent with State Density Bonus law, the project can request waivers of these development standards.
Subdivision
The applicant proposes a two-lot subdivision for residential condominium purposes. The Subdivision Committee reviewed and deemed the application cleared on July 1, 2025, satisfying code requirements.
Parking
The project provides a total of 230 parking spaces (189 garage spaces and 40 surface parking spaces), whereas 201 parking spaces are required per Zoning Code Section 18.22.050 (one parking space for each of the studio and one-bedroom units and 1.5 parking spaces for each of the two-bedroom units). The project site is within half a mile of the Santa Clara Caltrain Station, a major transit stop, as defined in Section 21155 of the Public Resources Code, and so pursuant to AB 2097 (2022), it is not required to provide any parking.
Consistent with the City Code, the project would provide one secure private bicycle parking space per unit located in the five parking garages with electrical outlets (142 Class I bicycle parking spaces), seven short-term, public Class II bike racks, and a do-it-yourself bicycle repair station (e.g., air pump and basic tools) so cyclists can conduct repairs as needed.
Affordable Housing
The project is providing 20 percent of the total number of units (or 29 units) to be very low, low or moderate affordable housing units, exceeding the City’s affordable housing ordinance requirement of 15 percent affordable housing units. The proposal includes 10 percent of the units as lower income units and the other 10 percent a mix of very low- and moderate-income units. Pursuant to the State Density Bonus Law, the project qualifies for two incentives or concessions and any waivers that physically preclude the construction of a development.
Planning Commission Meeting
At the August 13, 2025, Planning Commission meeting, staff presented an analysis of the project’s conformance with the Santa Clara Station Focus Area Plan, General Plan, Zoning Code and the Subdivision Code. During the meeting, the Commission had questions regarding the following topics.
Visibility and safety concern for egress to Coleman Avenue
In response to these questions, the applicant team shared that the site plan was prepared keeping sight line triangles and that the site plan has been reviewed by the City’s Traffic division.
Silicon Valley Power (SVP) ability to supply power
The Commission asked if SVP could provide power to this project and staff shared that SVP has reviewed the project as part of the Project Clearance Committee and added appropriate conditions of approval. Staff reached out to SVP after the meeting for further clarification and they shared that per project’s site feasibility design, it is not anticipated that total site coincident load will exceed 2.5MVA, which is the point at which more detailed System Impact Studies (SISs) are triggered for non-data center development.
Santa Clara Station Area Plan Task Force
In response to Commission’s question about the Station Area Task Force, staff explained that the project has been discussed with them, and they were invited to the Community Meeting. Also, the Santa Clara Station Area Specific Plan is still underway and the Santa Clara Station Area Focus Area policies under the General Plan are applicable to the project, even though the plan itself would not be applicable. The project is consistent with several Santa Clara Station Focus Area Policies listed in the General Plan, as described in detail in the Planning Commission staff report of August 13, 2025.
Regional Housing Needs Allocation
In response to whether the proposed units count towards City’s required Regional Housing Needs Allocation (RHNA), staff confirmed that the proposed 142 residential units will count towards the current RHNA cycle and will be included in the annual report to State for permitted units and then again after construction, as constructed units.
Nearest bus stops
In response to Commission’s question about the nearest bus stops, staff shared that there are multiple bus routes at the Santa Clara Station, since it is a major transit hub and there is also a bus stop on Coleman Avenue and Brokaw Road.
Unit design for all ages
The Commission requested the developer to consider adding a bedroom on the first floor to address the needs for all ages and to develop a community that ages in place. To address the Commission’s comment the Developer has added one bedroom on the first floor of five units.
Fence height on the south
The developer shared that the project provides a six-foot high fence to the rear, and the Commission wanted to see if the fence could be higher. Staff explained that the zoning regulations allow for a maximum six foot high fence with a one foot lattice and it would be up to the developer to request a minor modification to increase by up to 25 percent. The developer clarified that one of the considerations of the site layout was to connect to future pedestrian connections as envisioned in the draft Station Area Plan, allowing the fence to come down in the future when those pedestrian connections are redeveloped.
Traffic Noise Concerns
In response to the question about the traffic noise, the developer shared that the project uses Sound Transmission Class (STC) rated windows to address any noise concerns for the future residents.
Architecture
The Commission commented that the architecture of the project still needed a lot of work. Staff shared that the Developer is working on the project’s architecture, and it will be reviewed at the Development Review Hearing after the Council’s decision on the General Plan Amendment, Rezoning and Vesting Tentative map applications.
The Commission requested to briefly describe the comments received on the Mitigated Negative Declaration (MND) and response to comments prepared. In response, staff shared there were five public comments received on the MND including from Muwekma Ohlone Indian Tribe, Department of Toxic Substances Control (DTSC), City of San José Airport Department, Santa Clara Valley Transportation Authority (VTA), and Valley Water. A response to the comments received was prepared and posted on the project’s CEQA page.
Staff briefly explained that the Muwekma Ohlone tribe’s concern was about the legitimacy of another native American tribe, Tamien Nation, which had requested formal consultation with the City, and with whom the City had consulted on the language for mitigation measures. Muwekma Ohlone objected to the City’s consultation with Tamien Nation, and asked that the City consult with Muwekma Ohlone instead. However, the City conducts consultation with all the tribes on the list received from the Native American Heritage Commission (NAHC) within the statutory consultation period, and Tamien Nation was the only tribe that requested consultation during that period.
Staff also briefly went over the other comments received on the MND with the Commission. The Airport had provided a standard comment directing the applicant to obtain a FAA determination of no hazard. Valley Water did not raise any substantive CEQA issues. Similarly, Santa Clara Valley Transportation Authority did not raise any issues critical to the environmental documents, but noted that the proposed density of the project is very low, considering its proximity to the transit station.
DTSC’s comments asked for more oversight and testing. In response, the environmental consultant explained that the project already prepared a Phase I Environmental Assessment, which did not identify anything onsite of concern. The one off-site potential hazard is already under remediation. Recent testing on the Project Site did not show any hazardous materials in the soil levels above the environmental screening levels for residential uses. The soil on the site, while historically used for agriculture, is common in the area. A standard Mitigation Measure, which requires the preparation of a Soil Management Plan (SMP), is already included with the project, and there is no reason for additional oversight. Additionally, the Fire Department has conditions of approval to require hazmat clearance prior to obtaining building permit.
The representative of the current owner was also present at the hearing, and shared their perspective supporting the Project. There were no other public comments at the Hearing. At the end of the discussion, the Planning Commission voted (6-0-1, Bhatnagar absent) to recommend approval of the project to the City Council.
The Project is now presented for City Council consideration and action. The following specific actions are required.
1. Mitigated Negative Declaration
An Initial Study and Mitigated Negative Declaration (MND) was prepared for the project. To approve the MND, the Council must find the project will not have a significant effect on the environment after mitigation, based on the Council’s independent judgment. As detailed in the Environmental Review section below, the MND concludes that all potential impacts will be reduced to less than significant after mitigation.
2. General Plan Amendment
A General Plan Amendment from Santa Clara Station Regional Commercial to Santa Clara Station High Density Residential is necessary to allow for the proposed residential use. General Plan Amendments are largely discretionary, but must be consistent with the rest of the General Plan. Here, the project would advance the General Plan goals of increasing the supply of both market-rate and affordable housing and redeveloping an underutilized site. The project is consistent with station focus area policies including maximizing residential development within walking distance of the station, and incorporating modern architectural features and interconnected pedestrian paths.
3. Rezone
A Rezoning from Commercial Regional (CR) to High Density Residential (R4) is necessary to allow for the proposed residential use. Rezones are largely discretionary, but the proposed use must be consistent with the proposed zoning. Here, the project would satisfy the intent of the R4 zone, to encourage development types that use innovative site planning, provide on-site recreational amenities, and are located near neighborhood commercial centers. The proposed density of 37.6 units per acre would comply with the R4 density range of 37-50 units per acre. The project meets most development standards of the R4 zone but would utilize waivers under the density bonus law for side and rear setbacks, and private and common open space requirements.
4. Vesting Tentative Map Approval
[A Vesting Tentative Subdivision Map is proposed to create the condominium lots for the 142 townhomes. The required findings, and facts supporting them, are as follows:
• General Plan Consistency: The subdivision would effectuate the redevelopment of an underutilized site, and Policy 5.3.1-P8 encourages the redevelopment of underutilized and vacant parcels. The project is also consistent with station focus area policies including maximizing residential development within walking distance of the station, and incorporating modern architectural features and interconnected pedestrian paths
• Site Suitability: The type of development (multifamily residential) is appropriate given the proximity to Santa Clara Station and the focus area policy encouraging multifamily development in the station vicinity. The density of development is appropriate given that it meets the density range for the R4 zone and the site is in an urbanized area served by existing utilities and infrastructure.
• No Adverse Effects: The design of the subdivision and type improvements will not cause substantial environmental damage, as the MND concluded that the project would have a less than significant impact in all resource areas after mitigation. With respect to health impacts, mitigation measures included a Soil Management Plan and a Health and Safety Plan to minimize exposure to hazardous materials during demolition and construction; use of best management practices during construction to minimize exposure to particulate matter; and installation of a ventilation system to filter air in dwelling units after construction.
• Conflicts With Easements: As designed, the project would not conflict with any recorded public easements for access through or use of the proposed subdivision.
• Natural/Passive Heating and Cooling: The project will adhere to CALGreen energy efficiency measures to conserve energy through building design and site planning.
Staff is recommending that the City Council approve the Project by approving all of the above-described actions because the Project will provide much-needed housing in an attractive design, providing all-electric solar-powered homes, including 29 deed-restricted units satisfying the requirements of the City’s Affordable Housing Ordinance, but also non-deed restricted, smaller units that will be affordable “by design”.
As an alternative, the Council has the option to deny the project, or to refer the matter back to staff for modifications.
ENVIRONMENTAL REVIEW
The potential environmental impacts of the project are addressed in a Mitigated Negative Declaration (MND) the City prepared in accordance with the California Environmental Quality Act (CEQA). The MND and Notice of Intent to Adopt were posted on the City’s website and were circulated for 20-day review on July 11, 2025, and closed on July 31, 2025, in accordance with CEQA.
The MND analyzed the project’s impact in the various environmental topics covered by CEQA. Most topics were found to have less than significant impact or no impact. The following topics were found to have potential impacts that could be reduced to less than significant with mitigation: air quality, biological resources, cultural resources, geology and soils, hazards and hazardous materials, and tribal cultural resources. In support of greenhouse gas emission reductions, the project will implement an all-electric design. The mitigations and responsible parties for mitigation are included in the mitigation monitoring and reporting program (MMRP) (Attachment 3).
There were five public comments received on the MND including from Muwekma Ohlone Indian Tribe, Department of Toxic Substances Control (DTSC), City of San José Airport Department, Santa Clara Valley Transportation Authority (VTA), and Valley Water. A response to comments was prepared and posted on the project’s CEQA page. The link to the CEQA page is included in Attachment 3.
FISCAL IMPACT
There is no fiscal impact to the City for processing the requested application other than administrative time and expense typically covered by processing fees paid by the applicant.
COORDINATION
This report has been coordinated with the City Attorney’s Office, Parks and Recreation Department and Public Works Department.
PUBLIC CONTACT
On September 10, 2025, a hearing notice was published in the Santa Clara Weekly and on September 11, 2025, a notice of public hearing for this item was mailed to property owners within 1,000 feet of the project site boundaries and emailed to interested parties. At the time of writing this report, Staff has received six public comments on the project, and they are available as Attachment 9.
Community Meetings
Consistent with the City’s Public Outreach Policy for Planning Applications, public outreach meetings were conducted by the Property Owner/Applicant on October 10, 2024 (in-person) and on March 31, 2024 (virtual), to engage the neighborhood community in the planning process. Six members of the Community attended the first in-person Community Meeting, and 13 members of the Community attended the second Community Meeting. Notices of the meetings were mailed by the Property Owner/Applicant to 268 properties within 1,000 feet of the project site boundaries and a recording and meeting minutes were posted on the City’s website. These meetings provided the community opportunities to review and comment on the proposal. Key topics at these meetings included the site plan, consistency with the Station Area Specific Plan, rideshare drop off/pick up and deliveries location, affordability, relocation of existing commercial tenants, and project timeline.
RECOMMENDATION
Recommendation
1. Adopt a resolution approving the Mitigated Negative Declaration and the Mitigation Monitoring or Reporting Program for the proposed residential townhouse project at 1400 Coleman Avenue;
2. Adopt a resolution approving the General Plan amendment to change the land use designation from Regional Commercial to High Density Residential;
3. Adopt a resolution approving a rezoning of the project site from Commercial Regional (CR) to High Density Residential (R4) subject to conditions of approval; and
4. Adopt a resolution approving a Vesting Tentative Subdivision Map for condominium purposes, making the required findings and subject to conditions of approval.
Staff
Reviewed by: Afshan Hamid, Director, Community Development Department
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Vicinity Map
2. Planning Commission Staff Report of August 13, 2025
3. Web Link to the Project Page and Mitigated Negative Declaration (MND) and Mitigation Monitoring or Reporting Program (MMRP)
4. Resolution Adopting the Mitigated Negative Declaration (MND) and the Mitigation Monitoring or Reporting Program (MMRP)
5. Resolution Approving the General Plan Amendment
6. Resolution Approving the Rezone
7. Resolution Approving the Vesting Tentative Subdivision Map
8. Conditions of Tentative Subdivision Map Approval
9. Public Comments Received
10. Project Data and Compliance
11. Development Plans
12. Vesting Tentative Subdivision Map