REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Actions on a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP), General Plan Amendment from Neighborhood Mixed-Use to Very High Density Residential, and a Rezone from Neighborhood Commercial to Planned Development to Allow the Development of a Four-Story Mixed-Use Development with 39 Residential Housing Units, and 1,500 Square Feet of Ground Floor Commercial Space for the Property Located at 2655 The Alameda
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
Kapital Alameda, LLC, (“applicant”) proposes to construct a four-story mixed-use development project on a triangular 0.4-acre vacant lot where The Alameda intersects with Bellomy Street and Park Avenue (2655 The Alameda). The project site was previously developed as a gas/service station but has remained vacant (unimproved) since its demolition in 1993.
The proposed project involves a General Plan Amendment to change the General Plan land use for the site from Neighborhood Mixed Use (10-36 DU/AC; 0.10 Commercial FAR minimum) to Very High Density Residential (51-100 DU/AC; Commercial allowed with no minimum FAR) and a Rezone from Neighborhood Commercial (CN) to Planned Development (PD). These entitlements collectively would allow for the proposed development of a four-story mixed-use project with 39 rental housing units (resulting in a density of 97.5 DU/AC), 1,500 square feet of ground floor commercial space, public and resident amenities, 38 on-site parking spaces (24 below grade and 14 at grade), 8 motorcycle spaces, landscaping, and public and private on- and off-site improvements. The project would restrict 15 percent of the total units (minimum 5 units) to low-income residents based on an Average Median Income (AMI) of 100%, equivalent to the Moderate Income affordability category.
The project was presented to the Planning Commission at a publicly noticed special meeting on July 13, 2023. The Planning Commission staff report (Attachment 3) provides an analysis of the project’s conformance with the General Plan, Zoning and other regulations. The Planning Commission recommended approval of the project.
DISCUSSION
At the July 13, 2023 Planning Commission meeting, staff presented an overview of the proposal, addressing site conditions and surrounding uses, the required traffic and pedestrian improvements, community outreach, and the Mitigated Negative Declaration prepared for the project in conformance with the California Environmental Quality Act (CEQA). The applicant then made a presentation highlighting the timeline for development, tenancy, project improvements and benefits, parking accommodations, noise mitigation measures for the building, the required vapor monitoring and construction requirements for the site given its former use as a gas station, and shade and shadow conditions on the interior common space.
Eight members of the public provided comment in person and via Zoom. Public comment included a representative of Carpenters Union Local 405, advocating for the incorporation of labor standards and a certified apprenticeship program into the project. Other community members commented on the proposed building design, parking count, affordability level of the Below Market Rate (BMR) units, mitigation of soil contamination and airborne transport with construction, and sound attenuation of interior noise for resident tenants. The public speakers were split on the issue of parking between those who believe the proposed parking is insufficient and will exacerbate existing conditions and those stating that parking is not an issue given the surrounding uses and accessibility to transit and Transportation Network Companies (TNC), such as Uber. A number of individuals expressed support for a greater allocation of the requisite 15 percent affordable units to the low-income households category. Public speakers were also split between those who expressed a desire to see a more homogeneous and unified design in the building architecture and those who expressed a desire for an enhanced, more unique (architecturally iconic) design.
In response to the Commission’s and the public’s comments, staff provided the following information:
• In regards to affordable housing, the project would be subject to the City’s affordable housing ordinance, which requires that of the 39 rental units, 15 percent (5.85 units) must be provided at affordable rental prices to lower-income households (at an average income level of 100% area median income (AMI)). Because the affordability requirement will result in a fractional (0.85) unit, the developer has the option of either providing six affordable units or providing five units and paying an in-lieu fee for the fractional unit.
• Consistent with the California Environmental Quality Act (CEQA), the project requires a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP).
• In regards to parking, per State law, projects within one-half mile of major transit stops are exempt from any local parking requirements. The subject site qualifies for this exemption, as it is 0.4 miles from the Santa Clara Caltrain Station. In this case, the developer is voluntarily proposing to provide three parking spaces for commercial use and 35 spaces for residential/tenant use for the 39 units, resulting in a ratio of just less than one space per unit. The applicant’s rationale for the proposed parking count is that it will meet the anticipated demand based on tenancy by students and proximity to the Santa Clara University campus, neighborhood commercial uses, and local and regional transit services.
Following public comments, the Planning Commission discussed the project and entitlements under their purview. The Planning Commission then concluded deliberations and adopted resolutions to make the following recommendations to the City Council: 1) approve the MND & MMRP (7-0-0); 2) approve the General Plan Amendment from Neighborhood Mixed Use to Very High Density Residential (7-0-0); and 3) approve a rezone from CN to PD to allow the development of a four-story mixed-use project with 39 rental units, 1,500 square feet of ground floor commercial space, public and resident amenities, 46 on-site parking spaces (car and motorcycle), landscaping, and public and private on- and off-site improvements, subject to conditions (6-1-0). The rezone motion included passing the Resolution with the following modifications:
• Add a new paragraph 5 at the end of the Resolution and change the numbering “effective date” paragraph to paragraph 6. Paragraph 5 to state: “The Planning Commission encourages the owner and any contractors or subcontractors working on the project to evaluate hiring local labor, hiring from or contributing to apprenticeship programs, increasing resources for labor compliance, and providing living wages during the development of this Project.”
• Change the second sentence in Condition P18 to state “TDM measures shall include…” instead of “TDM measures are to include…” regarding transit passes.
Commissioner Bouza voted in opposition to the rezoning resolution stating that he did not agree with the modifications, but otherwise supported the project.
ENVIRONMENTAL REVIEW
A Mitigated Negative Declaration (MND) was prepared for the project by the environmental consultant firm David J. Powers & Associates, Inc., in accordance with the California Environmental Quality Act (CEQA). The MND and Notice of Availability (NOA) were posted on the City’s website at <https://www.santaclaraca.gov/our-city/departments-a-f/community-development/planning-division/environmental-review-ceqa> and circulated for 30-day review on April 13, 2023 and ending on May 15, 2023, in accordance with CEQA requirements. The Planning Division received agency comments on the MND from San Jose Mineta International Airport, California Department of Transportation and Valley Water which are provided as Attachment 2 to this report, along with responses to comments for review.
The MND examined potential environmental impacts associated with project development and identified air quality, biological, cultural resources, geology and soils, hazards and hazardous materials, and noise impacts and determined incorporation of mitigation measures into the project would reduce all potential impacts to less than significant. A detailed discussion of the potential impacts and mitigation measures to be applied to the project are specified in the MND and would be implemented through project conditions of approval and the MMRP for the proposed project.
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.
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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library. Furthermore, public outreach for the project is consistent with City Council Resolution No. 17-8456, regarding public outreach policy.
Public Notices and Comments
A newspaper notice for this item was published on June 28, 2023 in The Weekly, a newspaper of general circulation, for the Planning Commission meeting on July 13, 2023 and City Council meeting of August 29, 2023. On August 17, 2023, the notice of public hearing for this item was posted in three conspicuous places within 300 feet of the project site and was mailed to property owners within 1,000 feet of the project site boundaries in the Old Quad District. The Planning Division received comments on the project, which are provided in Attachment 8 to this report for review.
Public Outreach Meetings
Virtual public outreach meetings were conducted by the property owner and project architect on November 10, 2021 and May 24, 2023 to engage the neighborhood community in the planning process. Notices of the meeting were mailed by the applicant to property owners in the Old Quad District and interested parties (resulting in 5,950 mailings for each meeting) and was also posted on the City’s website. These meetings provided the community the opportunity to review and comment on the proposal and revised changes made to the proposed building and site design resulting from community input. This also served as an opportunity to share comments and concerns regarding the on-site parking count, trends regarding use of street parking in the project area, pedestrian safety, and traffic generated by the project.
ALTERNATIVES
1. Adopt a resolution to adopt the Mitigated Negative Declaration and the Mitigation Monitoring and Reporting Program for the 2655 The Alameda Mixed-Use Project.
2. Adopt a resolution to approve a General Plan Amendment from Neighborhood Mixed Use to Very High Density Residential.
3. Adopt a resolution to approve a Rezone from Neighborhood Commercial (CN) to Planned Development (PD), subject to conditions.
4. Deny the General Plan Amendment from Neighborhood Mixed Use to Very High Density Residential
5. Deny the Rezone from Neighborhood Commercial (CN) to Planned Development (PD).
RECOMMENDATION
Recommendation
Alternatives: 1, 2, and 3.
1. Adopt a resolution to adopt the Mitigated Negative Declaration and the Mitigation Monitoring and Reporting Program for the 2655 The Alameda Mixed Use Project.
2. Adopt a resolution to approve a General Plan Amendment from Neighborhood Mixed Use to Very High Density Residential.
3. Adopt a resolution to approve a Rezone from Neighborhood Commercial (CN) to Planned Development (PD).
Staff
Reviewed by: Andrew Crabtree, Director of Community Development
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program
2. Responses to Comments received on the Mitigated Negative Declaration
3. Planning Commission Staff Report of July 13, 2023
4. Resolution Recommending Council Adopt the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program
5. Resolution Recommending Council Approve the General Plan Amendment
6. Resolution Recommending the Council Approve the Rezone
7. ALUC Finding of Conformance
8. Correspondence
9. Conditions of Rezoning Approval
10. Development Plans