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City Council approves development agreement for San Antonio Center Phase 3, delays related resolutions to June

3527187 ยท May 27, 2025
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Summary

The Mountain View City Council on May 27 approved a development agreement with Merlon Geier Partners for the Phase 3 commercial buildout of San Antonio Center, while postponing related resolutions to align with a June 10 ordinance second reading.

The Mountain View City Council on May 27 approved a development agreement with Merlon Geier Partners for the Phase 3 office-and-retail project at San Antonio Center, while postponing adoption of two related resolutions to align with the ordinance second reading on June 10, 2025.

The project, presented by Deputy Zoning Administrator Rebecca Shapiro and Community Development Director Christian Murdoch, proposes about 182,000 square feet of commercial office space with ground-floor retail, three levels of underground parking and pedestrian-oriented design changes at the corner of San Antonio Road and California Street. The applicant said the development would use transferable development rights (TDR) and pay roughly $19 million into the TDR program at the time of building permit.

The council discussion focused on design revisions the applicant made following earlier study sessions, parking and shared-parking arrangements, and the projectโ€™s community benefit commitments tied to the TDR program. Christian Murdoch told the council the project generally complies with the San Antonio Precise Plan and that an addendum to the Precise Plan EIR found no new or substantially worsened environmental effects.

David Geiser, managing director for Merlon Geier Partners, described the redesign and financing posture: โ€œAs the largest contributor to the TDR program, we represent probably 25% of the value of the TDRโ€ฆ that will result in a payment of approximately $19,000,000 at time of building permit into the TDR program,โ€ he said.

Councilmembers pressed the applicant on parking after Assembly Bill 2097 eliminated local minimum parking requirements. Geiser said the projectโ€™s shared-parking arrangement and the voluntary nature of current parking will give leasing flexibility and improve financial feasibility. Brookfield Properties leasing representative Cutter McLeod (introduced in the hearing) said recent leasing interest has increased as office occupancy in the surrounding phases has improved.

Council member Ramedrez, who made the motion to introduce the ordinance approving the development agreement, asked staff to explore alternative mechanisms to achieve the project if the Los Altos School District (LASD) and the city cannot reach a new funding and jointโ€‘use agreement tied to TDR proceeds. The ordinance language approved by the council sets the development agreement to become effective upon execution but not earlier than Dec. 19, 2025, and authorizes staff to work with the applicant to establish a vesting date of July 10, 2025.

The motion to introduce the ordinance (with the modifications described above and postponement of the two resolutions to the June 10 second reading) was moved by Council Member Ramedrez, seconded by Council Member Hicks, and passed unanimously.

Because the project uses TDRs and required precise-plan amendments, staff said the item would return on June 10 with the ordinance second reading; the two resolutions will be placed on that meetingโ€™s consent calendar for adoption. The project team and staff said they will continue outreach and finalize ministerial updates to ensure compliance with recently updated State and local building and parking rules.

Whatโ€™s next: staff will return June 10 for the ordinance second reading and anticipated consent adoption of the two resolutions; if the LASD funding/joint-use discussions do not resolve, staff was directed to explore alternate ways to deliver the community benefits linked to TDR proceeds.