Planning commission backs scheme C for City Place Santa Clara with extra review for data centers

The Santa Clara Planning Commission on June 11 recommended City Council approve a set of changes to the long‑planned City Place Santa Clara project, including an addendum to the project EIR and an amendment to the master community plan to add a new “scheme C” land‑use scenario. The change would allow light industrial and advanced manufacturing uses on Parcels 1 and 2 of the 240‑acre site while concentrating the project’s office and mixed‑use development in the city‑center parcels.

City staff said the total permitted gross square footage for the master community remains unchanged at 9,160,000 square feet; the draft scheme shifts up to 1,600,000 square feet of light industrial uses to Parcels 1 and 2 and increases intensity in the city‑center parcels to keep the overall total constant. Nimisha Agrawal, senior planner, described design guidelines in scheme C intended to buffer industrial parcels from adjacent residential areas: deeper setbacks, landscape buffers, limits on locating loading docks and substations near residences and vertical/horizontal façade modulation.

The staff recommendation included clarifying how data centers would be reviewed: small power plant exemption (SPPE) data centers (50–99 MW) would require review by Santa Clara Valley Power and (where applicable) the California Energy Commission process; non‑SPPE data centers would require environmental review and a minor use permit. Commissioners and staff discussed power availability, and outside counsel and SVP representatives told the commission that the utility’s planned Esperanza substation will provide substantial additional power in the late‑2028 timeframe; staff and counsel said that today there is roughly 9 MVA available to the site, enough only for early phases.

Commissioners expressed concern that the proposed draft would allow some data‑center types to proceed without full Planning Commission review. After extended deliberation and public comment — including questions about whether data centers are likely and whether the city can support new large power draws — the Planning Commission modified staff’s rezone recommendation. The commission voted to recommend that City Council adopt the EIR addendum and approve the general plan and PDMC zoning amendment to add scheme C, but the body also amended the rezoning motion to remove SPPE data centers from the list of permitted uses on Parcels 1 and 2 and to add all data centers to the conditional‑use category with a conditional‑use permit that would come to the Planning Commission (replacing the minor use permit pathway staff had proposed).

Commissioners framed the change as seeking an extra review step for data‑center proposals so the commission and public can consider impacts such as power, traffic and compatibility before facilities are permitted. The commission’s amendment was technical — it strikes SPPE data centers from the permitted‑use list on page 21 of the master community plan and revises the conditional‑use paragraph to include data centers and require review via conditional use permit (CUP) rather than minor use permit.

Motions were: adopt an addendum to the City Place Santa Clara EIR; approve a general plan amendment to permit light industrial uses on Parcels 1 and 2; amend the PDMC to add scheme C (with the above modification to data‑center permitting); and recommend approval of a development agreement amendment to implement scheme C. All four motions passed on roll call votes. The matter now goes to City Council on July 8 for final action.

Staff and the applicant emphasized the project remains a multi‑phase, long‑term vision that will return to the commission with development area plans for individual phases and more detailed design reviews.