REPORT TO CITY COUNCIL
SUBJECT
Title
Public Hearing: Action on a General Plan Amendment to Remove the Lawrence Station Phase II, Central Expressway, and De La Cruz Focus Areas
Report
BACKGROUND
The City’s General Plan has nine Focus Areas that includes four Focus Areas south of the Caltrain corridor and five Future Focus Areas north of the Caltrain corridor, as shown in the Focus Areas map (Attachment 5). The Focus Areas represent locations with opportunities for more intense development and encourage improvements and new development tailored to the character and quality of each area. In practice, Focus Areas have represented locations where industrial/office land uses could be and have been converted for residential development opportunities. However, since the initial Focus Areas were introduced in the General Plan, development has changed due to market demand and the City’s certified Housing Element now delineates where future housing could be located.
The proposed General Plan Amendment aligns with the changing development patterns and Housing Element and would remove the following three Focus Areas from the General Plan: Lawrence Station Phase II (west of Lawrence Expressway), Central Expressway, and De La Cruz because these areas are not ideal locations for housing due to the existing industrial and office land uses.
More specifically, the Central Expressway Future Focus Area has a dense concentration of data centers that would be unlikely to convert to housing and be incompatible with housing should it be developed. In the De La Cruz Future Focus Area, some of the properties are in an undesirable location under the San Jose Mineta International Airport flight path, and the area represents many smaller light and heavy industrial properties that house viable support businesses such as machine shops, auto body shops, welding, plating, and the like in the City. And as for Lawrence Station Phase II, the owners of the industrial and office properties in this area, which includes companies such as Intuitive Surgical, have no current interest in redevelopment for housing. Therefore, to reflect these conditions, and provide clear direction on where the City intends for future housing growth to occur, the City proposes a General Plan Text Amendment and Land Use Diagram Amendment to remove these Focus Areas from the General Plan. Furthermore, housing and especially affordable housing, in industrial zoned areas may trigger Environmental Justice concerns and Affirmatively Furthering Fair Housing (AFFH). These sites would not meet the State Housing & Community Development (HCD) criteria for site selection due to current conditions identified.
The adopted Housing Element demonstrates that the City has adequate capacity to produce housing during this sixth cycle, which is generally co-terminus with the timeframe of the City of Santa Clara General Plan (2010-2035). The City has satisfied our Regional Housing Needs Assessment (RHNA) with our Specific Plan areas and other areas such as the approved Greystar Freedom Circle residential development project within the new Freedom Circle Focus Area, as outlined in the sixth cycle (2023-2031 timeframe) of the General Plan’s Housing Element. The three focus areas proposed for removal were not a part of the Housing Element and are not needed to achieve the City’s RHNA.
At a publicly noticed meeting on April 16, 2024, the Planning Commission reviewed the proposed General Plan Amendment and voted 4-3 to recommend to the City Council that the Focus Areas not be removed the General Plan.
DISCUSSION
Pursuant to Section 1007 of the City Charter, after a public hearing thereon, the Planning Commission shall recommend to the City Council action on a General Plan amendment. At the April 16, 2024 Planning Commission meeting the Commission received a presentation from staff and discussed the item. The Commission voted 4-3 to recommend to the City Council that the Focus Areas not be removed the General Plan.
In their deliberations the Commission discussed the proposal including the following:
Commissioners’ discussion to remove the Focus Areas suggested that:
• Staff’s request makes sense as residential should not be next to data centers.
• The City has generated other focus areas for housing through conversions of land that have evolved naturally.
• Removing the Focus Areas would make it easier for residential development as Focus Areas require the development of a specific plan before residential development can occur.
• Removal of the Focus Area would allow a property owner to apply for a General Plan Amendment and Rezone for residential use.
Commissioners’ discussion to keep the Focus Areas suggested that:
• Not eliminating options for housing in the city now or in the future.
• These areas are opportunities to build higher density, taller housing away from the single-family, lower density neighborhoods.
• These areas could help us make our RHNA.
• These areas could just be areas for more data centers to locate as they are zoned with districts that allow for data center uses.
• These areas could bring a lot of affordable housing that you purchase rather than rent.
• Bringing this to our attention sends a message that these areas are less housing friendly and more open to industrial development.
• Data centers could go away one day and be available for housing development.
Staff responded to the Commission discussion by reiterating that the proposed General Plan Text Amendment and Land Use Diagram Amendment will remove the De La Cruz, Central Expressway, and Lawrence Station West Focus Areas from the General Plan and continue to apply their existing Heavy Industrial, Light Industrial, and Low Intensity Office Research & Development (R&D), land use designations consistent with existing uses. The reason for proposing the change was to reflect existing uses and realistic development patterns within these areas and provide clear direction to property owners and developers that the City no longer intends for these areas to be developed with residential uses. However, the majority of the Planning Commission appeared to prefer that these areas be used (or prioritized) for housing.
Summary
While the Planning Commission forwarded the proposed General Plan Amendment to the City Council with no recommendation, staff recommends that the City Council approve the request
to revise the General Plan text and land use diagrams associated with the removal of the subject Lawrence Station Phase II, Central Expressway and De La Cruz Focus Areas. The revisions will primarily affect Chapter 5.4, Focus Areas, of the City’s General Plan. See Attachments 5, 6 and 7 for the map revisions and a redline version of the text changes and a clean version of the text changes. Furthermore, with the certified Housing Element, sites for future housing have already been identified.
Community Outreach
On March 20, 2023, Planning staff held a community outreach meeting to present this General Plan Amendment. Property owners within 500 feet of the subject Focus Areas were notified. There were twenty people in attendance and two spoke regarding the lack of affordable housing in this area and redevelopment of housing elsewhere in the City. Staff clarified that residential development will be focused in new specific plan areas where there are residential land uses designated on the General Plan map including affordable housing.
ENVIRONMENTAL REVIEW
The City prepared an Addendum to the 2010-2035 General Plan Environmental Impact Report (Attachment 2) for the sixth Cycle (2023-2031) Housing Element, which considered the removal of the subject Focus Areas. The Addendum concluded that there is no substantial change to the General Plan that would require major revisions to the previous EIR; that there is not a substantial change in circumstances as a result of modifications to the General Plan that would cause new or substantially more severe impacts; and, that there is no new information of substantial importance that identifies new or more intense significant impacts than those identified in the General Plan EIR. With the adoption of Resolution No. 23-9188 (Attachment 3) at a public hearing on January 31, 2023, the City Council approved the Addendum to the General Plan EIR.
FISCAL IMPACT
There is no fiscal impact to the City for processing the requested application other than administrative time and expense for staff to draft this report and coordinate the environmental assessment.
COORDINATION
This report was coordinated with the 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.
On January 29, 2025, pursuant to Government Code Section 65352(a), the City mailed referral letters to Native American tribes and outside agencies advising them of the City’s intent to act on a General Plan Amendment to remove the subject Focus Areas.
On April 2, 2025, pursuant to Government Code Section 65353 and 65355, a notice of public hearing was published in The Weekly, a newspaper of general circulation for the City, for the for the Planning Commission Hearing to be conducted on April 16, 2025, and for the City Council Hearing to be conducted on May 27, 2025.
ALTERNATIVES
1. Adopt a Resolution to Amend the General Plan to remove the Lawrence Station Phase II, Central Expressway and De La Cruz Focus Areas and make associated text edits.
2. Adopt a Resolution to Amend the General Plan to remove the Lawrence Station Phase II, Central Expressway and De La Cruz Focus Areas and make associated text edits, with additional revisions.
RECOMMENDATION
Recommendation
Alternative 1: Adopt a Resolution to Amend the General Plan to remove the Lawrence Station Phase II, Central Expressway and De La Cruz Focus Areas and make associated text edits.
Staff
Prepared by: Steve Le, Senior Planner
Reviewed by: Afshan Hamid, Director, Community Development
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Addendum (Hyperlink)
2. City Council Addendum Resolution No. 23-9188
3. City Council General Plan Amendment Resolution
4. Planning Commission Staff Report, April 16, 2025
5. Map of Focus Areas and Removal Areas
6. General Plan Chapter 5.4 Focus Areas_Clean
7. General Plan Chapter 5.4 Focus Areas_Markup