Council conditionally approves eight‑story mixed‑use project on Castro Street, vacates portion of Fairmont Avenue

The City Council on April 24 conditionally approved an eight‑story mixed‑use development at the northeast gateway of downtown Mountain View that will deliver 140 residential units and ground‑floor commercial storefronts along Castro Street.

Staff said the 1.43‑acre project—located at 843–903 Castro Street, 700 W El Camino Real and 750 Fairmont Avenue—uses state density‑bonus provisions to reach the proposed unit count and provides 22 below‑market units (15% of base units for lower income and 15% for moderate income under the developer’s calculation). The developer requests a vesting tentative map to create condominium units and also seeks a city action to vacate and convey a block of Fairmont Avenue between Castro and Hope Streets for incorporation into the site; staff estimated the city would receive approximately $4.2 million for the land if vacated and sold.

Deputy Zoning Administrator Rebecca Shapiro and senior planner Edgar Marvilla summarized the design, which concentrates retail on the Castro frontage, adds new pedestrian open corridors (POs) through the block, and steps back upper floors to reduce perceived massing toward the Old Mountain View neighborhood. The application requests two waivers under state density‑bonus law; staff found the waivers necessary and negotiated a concession agreement to resolve the other bonus request.

The project will remove seven on‑site heritage trees and preserve one; the applicant proposes 54 new trees and streetscape improvements along project frontages. Staff estimated on‑site canopy would increase from 10% to about 16% of site area after a 10‑year establishment period, with additional canopy from rooftop planting.

Responding to council questions about condominium versus rental intent and commercial leasing prospects, staff said the vesting tentative map creates condominium parcels but the developer may rent units initially for market reasons. The applicant said banks commonly underwrite construction loans for projects as apartments, then convert when the market allows. On commercial activation, the applicant said they had initial outreach to local restaurateurs but expect to consider interim uses for vacant storefronts while seeking long‑term tenants.

Councilmember Ken Ramirez, who moved approval, praised the project for adding nearly 10,000 square feet of street‑level commercial space, including moderate‑income ownership opportunities and the potential proceeds from the Fairmont vacation. He and other council members asked staff to ensure mitigation for tree loss and to use proceeds where appropriate to benefit the impacted neighborhood.

The council approved the resolutions and the vesting tentative map, voting 4–2 in favor of conditional approval with findings and conditions set forth in the staff report.