REPORT TO COUNCIL
SUBJECT
Title
Action to Waive Second Reading and Adopt Ordinance No. 2074 to Approve a Development Agreement Between the City of Santa Clara and Kylli, Inc. for the Property Located at 4995 Patrick Henry Drive and 3005 Democracy Way, Santa Clara
Report
BACKGROUND
At the November 19, 2024 Council meeting, proposed Ordinance No. 2074 was passed for the purpose of publication. Pursuant to City Charter Sections 808 and 812, a summary of proposed Ordinance No. 2074 was published to the Santa Clara Weekly on November 27, 2024, and copies were posted in three public places.
DISCUSSION
The proposed ordinance would adopt the Development Agreement (DA) for the Mission Point Project, a mixed-use redevelopment of a 48.6-acre site located on the south side of Tasman Drive between Old Ironsides Drive to the east, Patrick Henry Drive to the west, and the right-of-way associated with the Hetch Hetchy aqueduct to the south. The Developer, Kylli Inc., would construct 1.8 million square feet of residential uses (up to 1,800 units), 3 million square feet of office/research-and-development, approximately 100,000 square feet of retail, and approximately 10,000 square feet of childcare facilities. A portion of the site could be used for additional residential units (up to 800 more units, for a total of 2,600) with a corresponding reduction of office/research and development uses (by 800,000 square feet). On November 19, the Council approved a General Plan Amendment, Planned Development Rezoning, Vesting Tentative Subdivision Map, and Environmental Impact Report for the Project, and introduced the proposed ordinance.
The term of the Development Agreement is ten years, with up to three five-year extensions. The DA would provide an array of community benefits to the City, including (1) 15% of the units at an average affordability level of 80% AMI (rather than 100%), (2) a minimum 10,000 sf grocery store, (3) a minimum 8,000 sf childcare center, (4) 1.5 acres of parkland with play areas for ages 2-5 and 5-12, (5) a commitment to maintain public parks and trails for at least 40 years, (6) public art with an aggregate value of $5 Million, (7) regional traffic fees worth $3 Million, (8) $3.5 Million in funding for fire station equipment, and (9) designation of the Project Site as the location for sales tax collection purposes.
ENVIRONMENTAL REVIEW
An Environmental Impact Report (EIR) was prepared in accordance with the California Environmental Quality Act (CEQA) and circulated for a 45-day public review between November 17, 2023 and January 2, 2024. A total of eight comments were received during the comment period. Responses to the Draft EIR comments, as well as minor text changes and clarifications, in the form of a Final EIR, were made available to the public through the City’s website on March 13, 2024 and were forwarded on to the commenters on the Draft EIR. With mitigation, the EIR identified less-than-significant impacts for most resource areas, with the exception of air quality and noise, for which the Project would result in significant unavoidable impacts. On November 19, the Council certified the EIR and adopted CEQA Findings and a Mitigation and Monitoring Program as well as a Statement of Overriding Considerations for the unavoidable impacts.
FISCAL IMPACT
There is no fiscal impact to the City other than administrative staff time and expense to prepare this report.
COORDINATION
This report has been coordinated with the Community Development Department.
PUBLIC CONTACT
A summary of proposed Ordinance No. 2074 was published to the Santa Clara Weekly on November 27, 2024, and copies were posted in three public places and made available for public inspection at the City Clerk’s Office.
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
Waive Second Reading and Adopt Ordinance No. 2074 approving a Development Agreement between the City of Santa Clara and Kylli, Inc. for the property located at 4995 Patrick Henry Drive and 3005 Democracy Way, Santa Clara.
Staff
Reviewed by: Alexander Abbe, Assistant City Attorney
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Ordinance No. 2074 (Intro)