Cupertino council approves 59-unit townhome development at former Staples site; includes 12 BMR units and multiple state housing waivers

The Cupertino City Council on July 1 approved a development to replace a commercial parcel on Stevens Creek Boulevard with 59 townhome-style condominium units, including 12 deed-restricted below-market-rate (BMR) units.

Planning staff and the developer said the project, proposed by Summerhill Homes for 20840 Stevens Creek Boulevard, relies on state housing statutes and a vesting application submitted under Senate Bill 330. Staff said the project qualifies for a Class 32 categorical exemption under CEQA and the Planning Commission unanimously recommended approval.

Emmy Suyama, senior planner, said the proposal includes 59 units in eight buildings with a mix of three- and four-story structures and unit sizes roughly between 1,800 and 2,700 square feet. The developer proposed 12 BMR units — six designated for median-income households and six for moderate-income households — and on-site parking that provides two-car garages for each unit.

The project requests two density-bonus concessions (to omit a commercial component) and 10 density-bonus waivers tied to objective development standards, Suyama said. The waivers would allow small increases to building height (to roughly 45 feet, 10 inches at some points), reduced front, side and rear setbacks, modestly increased lot coverage and narrower guest parking dimensions. The application also includes a vesting tentative map for condominium purposes.

Summerhill development manager Austin Lin told the council the design was revised after community meetings to increase setbacks along the shared southern property line and to rotate buildings to reduce privacy impacts on neighbors. "In response to further input from the neighbors, our design team was able to shift Building 7 and 8 ... and increased screening trees to 36-inch box size," Lin said.

Public commenters were split. Several neighbors and nearby business owners, including Imad Ibrahim, owner of the adjacent restaurant, supported the project and said resident foot traffic would benefit nearby businesses. Others, including long-time residents and some who said they oppose loss of retail, urged the city to consider the cumulative loss of retail space citywide.

Staff noted the project proposes to pay approximately $2,500,000 in park fees, $550,000 in school fees, and $120,000 toward the Stevens Creek Boulevard Class 4 bike lane. The project also proposes replacing 45 on-site development trees and planting 71 new trees, staff said. An off-site heritage oak adjacent to the site will not be removed.

Council member questions focused on tree protection, outreach steps, retail loss and the tradeoffs of state housing laws. Vice Mayor Moore, who moved approval, noted state density-bonus law and the Housing Accountability Act limit the city's authority to deny or condition qualifying housing projects. Council member Freund seconded the motion. The council voted unanimously to adopt the resolutions finding the CEQA exemption, making the no-net-loss finding and approving the requested permits and waivers.

The developer said, if approved, it plans to complete working drawings and begin site activity within about a year with an estimated first move-ins in late third/fourth quarter 2027.

Ending: The project moves forward with city approvals in hand. It replaces an underused retail site with homeownership units and includes a for-sale BMR component; the council directed staff and the developer to continue engagement on construction timing and tree protection plans.