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Sunnyvale Incentivizes Retail Space At Town Centers

Begrudgingly, the Sunnyvale City Council approved a program that aims to encourage more retail in the city’s northside town centers, but many worried it will create a food desert.

At its most recent meeting March 18, the council unanimously approved a program that allows developers to skirt below-market-rate housing requirements if they include higher levels of retail in their proposals.

The retail preservation program applies to two aging retail complexes north of El Camino Real. The first is Fair Oaks Plaza, located on Dwayne Avenue, the second Lakewood Shopping Center, located at Lawrence Expressway and Lakehaven Drive.

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Advocates turned out to the public comments portion of the meeting to implore the council to preserve an area they said is historically underserved.

Many said if the housing projects proposed for the area go-forward as is, the area will become a food desert. The proposed townhouses would likely displace grocery stores like Lucky’s and Taj Mahal market.

Hamanshu Sethi said the city cannot “let zoning loopholes dictate the loss of an essential community asset” like Fair Oaks Plaza, which hosts a barber shop, tae kwon do studio, and a grocery store.

“The plaza is not just a collection of businesses. It is a vital community resource that provides essential services, provides jobs and supports our local economy,” he said. “We will have fewer healthy food options nearby, leading to higher grocery costs, longer travel times and increased reliance on fast food or convenience stores.”

Further, he said, allowing the elimination of retail directly contradicts the city’s goals of fostering a healthy, accessible and walkable community.

The heart of the issue is that the city cannot mandate retail in housing developments, and state law protects developers from cities interfering with adding to the state’s housing stock.

City Attorney Rebecca Moon told the council the city would be on shaky legal ground if they denied housing projects the state law protects. She said if such matters went to court, it would cost the city a great deal of money and the project would likely go forward as proposed anyway.

Trudi Ryan, the city’s community development director, told the council that one of the developers is likely leaning slightly toward availing themself to the incentives while the other is likely leaning slightly toward not using them.

“I can feel the pain in the community about the loss of retail,” said Council Member Richard Mehlinger. “It will be tremendously painful … I don’t like being in this position.”

Mayor Larry Klein called the potential loss of retail “devastating,” adding that “the state law has failed us.”

Despite the outcry over food deserts, several speakers said they understood the tough position the council was in.

Chuck Fraleigh, with Livable Sunnyvale, but not speaking on the group’s behalf, said the proposal seemed like a “good balance” between the need for housing and retail.

Sunnyvale Consent Calendar Spending

The council approved the following spending in one motion via the consent calendar:

  • A $308,865 contract with Karbonous, Inc. for repair of dual media filters at the water pollution control plant.

Council Member Murali Srinivasan was absent.

The council meets again at 7 p.m. Tuesday, March 25 in the Council Chambers at City Hall, 456 W. Olive Ave. in Sunnyvale.

To submit public comments ahead of the Sunnyvale City Council meeting, visit http://Sunnyvale.ca.gov/PublicComments; Meeting online link: https://sunnyvale-ca-gov.zoom.us/j/96111580540; meeting call-in telephone number: 833-548-0276, meeting ID: 961 1158 0540

Contact David Alexander at d.todd.alexander@gmail.com

Other Sunnyvale City Council Meetings:
Sunnyvale DPS Chief Ngo Announces Retirement
Sunnyvale Ups Rental Assistance
Sunnyvale City Council Names New Park “Corn Palace Park”

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