Planning commission approves 242-unit development at 777 Sunnyvale Saratoga Road

The Sunnyvale Planning Commission voted 7-0 April 28 to approve a special development permit and tentative map to redevelop the former Orchard Supply Hardware site at 777 Sunnyvale Saratoga Road into a 242‑unit residential project with 2,050 square feet of commercial space and public pedestrian improvements, staff said.

The project would use an 11‑building townhome cluster on the Sunnyvale Saratoga frontage and a podium apartment building on the Matilda side. Norma Ishijayma, the project planner, told commissioners the development is on a 5.24‑acre site and proposes 80 townhomes and a 160‑unit, seven‑story apartment building; the proposal includes 15% below‑market‑rate units under state density bonus rules and a request for one concession and 16 waivers from development standards.

Why it matters: The approval advances a large infill housing project in an area the city identified for higher density in the El Camino specific plan. The project also triggers further decision points: the applicant’s alternative‑compliance proposal to shift most affordable units into the apartment building will be considered by the Housing and Human Services Commission and then the City Council, and the approval is subject to a 15‑day appeal period.

Key facts and conditions - Site and program: Staff described the site as 5.24 acres that has been vacant since Orchard Supply Hardware closed in February 2018. The project as approved would contain 242 residential units total (80 townhomes and a 160‑unit apartment building as presented by staff) and 2,050 square feet of ground‑floor commercial. - Affordable housing: The application as approved provides 15% below‑market‑rate (BMR) units across both product types. Staff told commissioners an alternative‑compliance application now under review would reallocate most BMR units to the apartment building and, if approved later, would change the project affordability mix to about 66% affordable in the apartment portion. - Density bonus and waivers: Staff said the project invoked the State Density Bonus law to request one concession and 16 waivers from specific development standards; staff recommended approval subject to findings and standard conditions. - Parking and transit: Norma Ishijayma, project planner, said, “the project is providing 299 parking spaces.” Commissioners spent substantial time on parking after a change in state law. Staff explained that Assembly Bill 2553 changed the state’s definition of a major transit stop by adjusting the transit headway threshold; because the project site falls within a half‑mile of a qualifying stop, the city cannot impose minimum parking requirements under the statute. Commissioners retained conditions requiring a parking‑management plan and other operational rules; staff said a previously proposed mechanical parking solution was discussed at the study session but that the state law change altered the local discretion on minimum parking. - Pedestrian and safety improvements: The project includes an 11‑foot sidewalk and a 15‑foot furniture zone along both frontages, enhanced street trees and pedestrian amenities, and a mid‑block HAWK crossing on Sunnyvale Saratoga Road that staff said is intended to provide a signalized pedestrian crossing to the adjacent shopping center.

Public comment and concerns Public speakers expressed a mix of support and concern. Daniel Alvarez, a field representative for North Central Carpenter union Local 405, urged the developer to use local union labor and apprenticeship programs, saying Sunnyvale “deserves better.” Several neighborhood speakers raised objections focused primarily on project height, parking adequacy, and construction impacts. Supporters said the project would add badly needed housing and help sustain nearby retail.

Commission discussion and direction Commissioners asked about the legal effect of the state parking law, the project’s parking allocation and management, the feasibility of mechanical parking, and the sequencing of approvals if the alternative‑compliance path is pursued. Staff and the applicant said conditions will require a parking management plan, that unassigned parking will be managed across the two project components, and that the alternative‑compliance decision (if pursued) goes next to Housing and Human Services and then City Council.

Votes at a glance - Motion: Adopt Alternative 1 — approve the CEQA determination that the project is within the scope of the El Camino Real Specific Plan EIR and approve the special development permit and tentative map per staff findings and recommended conditions. - Mover: Commissioner Pine; Second: Commissioner Shukla. - Outcome: Approved, motion passes with 7 yeses.

Next steps Staff said the 15‑day appeal period ends May 13. The applicant’s alternative‑compliance request is under review and is scheduled for the Housing and Human Services Commission in May and City Council consideration in June.

The commission record contains dozens of attachments, including a noise memorandum, traffic analysis and the applicant’s waiver/concession justification; staff indicated technical consultants were available to answer commissioner questions during the hearing.