A massive mixed-use development that came to the Santa Clara City Council nearly seven years ago has come back — with substantial changes.
At its Nov. 19 meeting, the council unanimously approved the complex that adds 2,600 apartments to the city’s housing stock, but the development also includes office and retail space.
Amenities featured at the development include a multi-use trail, 100,000 square feet of retail space — 10,000 square feet of which is earmarked for a grocery store, public art, traffic-reducing measures, a fire engine and a daycare.
“The future of what we need to build our communities and build our cities is a mixed-use environment where people can work, live, play, have entertainment, all in close proximity to one another,” Ben Tranel, with Gensler, the architect firm that designed the project.
Originally standing more than 600 feet tall, the building raised concerns with the Federal Aviation Administration (FAA). This caused the developer, Kylli Inc., to redesign the project, reducing the building height to between 123 feet and 192 feet and scrapping plans for a hotel onsite.
The 48-acre site, located 3005 Democracy Way, lies on the south side of Tasman Drive, between Patrick Henry Drive and Old Ironsides. Proposed in 2017, the development underwent an extensive redesign, most of which was based on resident feedback.
Divided into four parcels, Mission Point will host 9,000 parking spaces for more than 100,000 square feet of retail space and more than 3 million square feet of office space.
The development agreement is for 10 years, with three five-year extension options.
Reena Brilliot, economic development and sustainability director, told the council that the agreement holds the developer to strict timelines and imposes fines on them if the company fails to meet them.
The project will funnel more than $3 million into the city’s general fund.
Many saw the amount of below-market-rate apartments available as a big benefit. In addition to the 15% of apartments earmarked as below-market-rate, Kylli Inc. agreed to have those apartments be offered at an average of 80% area median income (AMI) instead of the 100% AMI the city requires.
“Both the city and the county are blessed with an abundance of riches when it comes to good jobs, good school and other community resources, but not housing,” said Jordan Grimes, a public commenter.
Overall, the project received high praise from the council and members of the public, including many housing advocacy groups, including SV@Home, Catalyze SV and the Housing Action Coalition.
A big sticking point for many who spoke seemed to be Kylli Inc.’s willingness to be engaged with residents, listening to their concerns, and adjusting the project accordingly.
“This is one company that has put the effort into working with the community, asking for input, asking what they can change for the better, what would we include,” said Mary Grizzle, a frequent council commenter.
Nobody spoke against the project.
Speakers frequently referenced how “vibrant” the project would make the area, with Mayor Lisa Gillmor saying it will likely become a “valuable lynchpin” for the neighborhood.
“We don’t just give them input, they actually listen,” Council Member Kevin Park said. “For any other applicant out there, this is the way to do it.”
Power Rates Going Up Again
The council also approved a 5% increase in electric utility rates for Silicon Valley Power (SVP).
Manuel Pineda, the chief electric utility officer, told the council the primary drivers for the increase are higher costs for renewable energy, an increase in labor and materials and a need to retain its reserves.
The rate hike will cause the average customer — using between 300 megawatt hours and 410 megawatt hours, more than 60% of Santa Clarans — paying between $2.44 and $3.37 more a month.
While the increase was for all customers, industrial customers still make up the lion’s share of money coming into SVP, generating $608 million of the $647 million that went into SVP’s coffers last year.
Pineda noted that SVP’s rates are still the lowest of any public utility with more than 10,000 customers and 59% lower than PG&E. The council approved the increase in a 6-1 vote, with Vice Mayor Anthony Becker voting “no.”
The new rates go into effect at the start of 2025.
Park Dedication
Finally, the council split a lot into two to make way for a .55-acre park that will link up with another park, creating one 1.75-acre park. The lot is part of a 284-apartment proposed development, located at 4590 Patrick Henry Drive.
The parcel division allows the city to own the park that the developer would need to dedicate to the city. The motion passed unanimously.
Consent Calendar Spending
The council approved the following spending in a single motion via the consent calendar:
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A $11 million purchase order with “vendors” capacitor banks with reactive switching devices, protection and control panels, insulators, and surge arrestors.
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A five-year, $410,000 contract with Bay Pro for landscaping services at water wells, storage tanks, and sewer pump/lift station sites. This contract has the option for five one-year extensions.
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A five-year $600,000 contract with Grid Subject Matter Experts to provide North American Reliability Corporation (NERC) compliance services and Supervisory Control and Data Acquisition (SCADA) system support.
The next scheduled meeting, a special stadium authority meeting, is Monday, Nov. 25, in the Council Chambers at City Hall, 1500 Warburton Ave. in Santa Clara. The next regularly scheduled council meeting is Dec. 3.
Members of the public can participate in the City Council meetings on Zoom at https://santaclaraca.zoom.us/
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View Comments (7)
How about a city tax on apartment dwellers, say 10 percent of their monthly rental fee? Make "them" feel the pain that home owners do.
What pain of costs of home owners do apartment renters not feel? Renters feel more pain since they have to pay to cover all costs plus profit for their landlords.
Apartment dwellers absolutely share the pain of property tax increases. When property taxes go up, landlords often pass those costs on to renters through higher rent. Unlike homeowners, renters have no control over these increases and no way to benefit from rising property values. Renters already bear the burden indirectly, so imposing an additional city tax on them would be doubling down on an unfair system.
Again, you live in your own dreamworld. I like that part where you said: "When property taxes go up, landlords often pass those costs on to renters through higher rent". "Often" is more real than you may realize. Landlords raise rents in anticipation of a tax increase and follow up with anther rent increase after taxes are increased. But you did get one part sort of right: "Unlike homeowners, renters have no control over these increases and no way to benefit from rising property values." They vote - and there's the problem. Renter don't care. They don't see the tax bill the landlord pays. I want to make that pain visible to them.
The big issue with large apartment complexes is that owners of single-family homes, townhomes, and condominiums are subsidizing the public services used by the residents, especially public schools. There needs to be some way to account for this disparity. It's an unfair system with the owners of the apartment complex gaining the financial advantage. Need to fix this. School taxes and other parcel taxes should be per square foot, not per parcel. A 2000 unit apartment complex paying a single parcel tax the same amount as a single-family home, is terribly unfair.
Trent,
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The disparity is accounted for by the fact that parcels are assessed different values. Property taxes are paid according to assessed value. Take the new Benton apartment building. I looked up the county records and it is assessed at a total value of over 214 million dollars. The apartment building pays more than 2.5 million dollars per year in property taxes. Any new apartment buildings pay much more per square foot of living space in property taxes than we get from most home owners because most home owners do not have their homes assessed at market rate value. If you have owned your home for more than a decade you are probably paying a fraction of what these apartment buildings are paying per square foot.
It's so heartening to read the generosity of my fellow residents expressed in the comments here. Please don't ever change, or think about the benefits to our City and community of having a growing population that contributes not only tax revenues but also supports local businesses.
After all, selfishness is what made our country so great!