Housing Complex Will Add 2,600 Apartments To Santa Clara

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:

• A $11 million purchase order with “vendors” capacitor banks with reactive switching devices, protection and control panels, insulators, and surge arrestors.

• 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.

• 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/j/99706759306; Meeting ID: 997-0675-9306 or call 1 (669) 900-6833, via the City’s eComment (available during the meeting) or by email to PublicComment@santaclaraca.gov.