In Sunnyvale, housing developments containing only below-market-rate apartments will no longer need to include retail along El Camino Real.
The city’s specific plan for El Camino Real mandates that housing developments include retail. However, at its Tuesday night meeting, the Sunnyvale City Council eliminated those requirements for projects that contain 100% below-market-rate units, provided they are on parcels below three acres.
“Part of the goal of El Camino Real is to create an active environment along the street,” said Trudi Ryan, the city’s director of community development. “We were trying to balance the need for retail with the need for affordable housing.”
Adoption of the housing element allows the city to meet its commitments to the state. It provides a provision that the council re-evaluates it once two such projects have been proposed, allowing for the flexibility to tinker with the specifications if needed.
The retail requirement will stand for projects on parcels larger than three acres, something that housing lobbyists bemoaned.
Ryan said only three of 26 below-market-rate developments in the city are on parcels three acres or larger.
Manuel Salazar, with housing special interest SV@Home, said his organization was supportive overall but still had criticisms.
“This ordinance reflects the ongoing challenges faced by affordable housing developers. We appreciate the city’s efforts to advance policies that create opportunities to create new housing where it is most needed,” he said. “Maintaining retail requirements on these larger sites could unintentionally hinder the potential development of a larger 100% affordable housing projects [sic].”
Maintaining the retail requirement on larger parcels will increase costs, Salazar said, which will in turn make projects unfeasible, reduce the number of units or amenities in a development and possibly create budget shortfalls.
Chuck Fraleigh, vice chair of another housing special interest, Livable Sunnyvale, echoed Salazar. Building developments that are entirely below-market-rate is difficult enough without additional retail requirements, he said.
Further, he added, since parcels larger than three acres make up a majority of the acreage along El Camino Real, the retail requirement adds another hurdle to below-market-rate housing for more than half of the corridor. Given how few below-market-rate developments are likely to be proposed on parcels three acres or larger, Fraleigh said there is “no reason” the council should not “show good faith” and remove the requirement.
Council Member Linda Sell said there is a lot of “anxiety” in the community about the loss of retail, a sentiment her council colleagues echoed. While the council values adding below-market-rate options to its housing stock, it isn’t the only consideration.
“We also value a quality of life for those people living in that 100% affordable housing, so if it is a giant, huge development, maybe having some active spaces or having some retail there is good,” she said.
Council Member Richard Mehlinger, who used to be the chair on Livable Sunnyvale’s board, said he was comfortable with the balance between two goods.
With many options for larger lots, including a lot-split, the inclusion of condominium ownership and what he called a “break-glass option” that allows the council to exempt a development, coupled with its ability to revisit the requirements after two developments are in the pipeline, he said was comfortable with the proposal.
The council approved the resolution unanimously.
Consent Calendar Spending
The council approved the following spending in one motion via the consent calendar:
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A $416,907 purchase Agreement with Zetron, Inc. fire station touch control system.
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A $1.19 million contract with West Coast Arborists, Inc. for street tree maintenance.
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A $388,240 contract with Kitchell CEM, Inc. for the senior center building rehabilitation.
Council Member Alysa Cisneros and Vice Mayor Murali Srinivasan were absent. The council meets again at 7 p.m. Tuesday in the Council Chambers at City Hall, 456 W. Olive Ave. in Sunnyvale.
To submit public comments ahead of the 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.
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