Council approves Related Santa Clara land‑use changes, adds new affordability target; scheme C advances with 4–3 vote

The City Council on Tuesday approved a package of amendments to the long‑planned Related Santa Clara project that redraws where office, retail and industrial uses may be built on the 240‑acre site across from Levi’s Stadium.

The council voted to adopt an environmental document addendum, a General Plan amendment, zoning/Master Community Plan revisions to add a new “Scheme C,” and amendments to the developer agreements that implement the new scheme. The motion passed 4–3 after a substitute motion to add a carbon‑free‑power requirement for data centers failed.

What changed: Under the approved Scheme C, the northeastern Parcels 1 and 2 (the parcels nearest Tasman and Lafayette) may be developed with light‑industrial uses — including advanced manufacturing, research and development, and potentially data centers — rather than the large office campus originally approved in 2016. The plan preserves the project’s intended “city center” — Parcels 4 and 5 — for condensed office, retail, housing and hotel uses and retains the requirement for at least 800,000 square feet of retail (with a best‑efforts goal at higher retail square footage).

Affordability and community provisions: As part of the amendments negotiated with Related, the developer agreed to increase housing affordability commitments from the original 10% of units at 120% area median income to 15% of units at 100% AMI on the units that are still subject to new affordability requirements (the change applies to units beyond an existing 200‑unit baseline). The amendment also requires related study work for pedestrian bridge options across Lafayette and retains the park‑and‑open‑space commitments in the Disposition and Development Agreement (DDA).

Council floor debate and public comments - Supporters and neighbors: Several residents and business stakeholders urged the council to approve the change, saying the updated mix reflects current market realities and will help the project move toward construction, more retail and civic benefits. Related said it needs greater flexibility to deliver projects in today’s weakened office market and showed examples from other long‑running, complex projects it has built. - Council concerns: Opponents pressed for stronger climate and public‑benefit protections, including a proposal (which failed) to require any future data center uses to run on 100% carbon‑free electricity; they also pushed for higher ground‑rent terms for city‑owned land and earlier delivery of the city park and fire station. Council members asked for clearer timelines for phase takedowns and for more detail on parking and power capacity. Related and staff said the existing development agreements set schedules that remain in force and that the Scheme C amendments add alternative takedown paths while preserving city protections.

Formal outcome and conditions - The council approved: an EIR addendum, General Plan amendment, MCP/Zoning text amendment adding Scheme C, an amendment to the Development Agreement (approved by ordinance), and an amendment to the DDA. Vote on the package: 4 in favor, 3 opposed. Vice Mayor Patricia Cox made the motion and Councilmember Gonzales seconded. The council also required an 18‑month notice period for relocation of the BMX track (originally proposed as 12 months); staff said that requirement will be memorialized in the agreements.

Notable constraints and next steps - Power and infrastructure: Staff and Related noted that any future data‑center use would need separate approvals; Silicon Valley Power said system upgrades (including the Esperanza substation) must be completed to support large new load and that negotiation of supply agreements would be required. SVP and Related said they will address capacity and interconnection as projects come forward. - Park and phasing: The city park on Parcel 3 remains in the plan but, under existing DDA terms, significant park design and construction activity is triggered by the takedown of later phases; staff said schematic park design funding will be advanced using developer contributions and park fee revenues but that full construction will likely occur later in the build‑out.

Ending note Related’s amendments preserve the project’s mixed‑use city‑center vision while shifting some early development capacity to industrial uses to match current market demand. Council supporters said the approach preserves long‑term civic benefits; opponents said the city should have secured stronger climate and fiscal terms before approving the change.