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Milpitas approves final phase of The Fields: 109 townhomes, 10 ADUs, 22 affordable rentals and $700,000 community benefit
Summary
The council approved a permit package and development agreement for 1320 McCandless Drive (The Fields, lot 3A) to build 109 townhomes, nine live-work units and 10 ADUs, convert 22 rental units at the adjacent Gideon building to deed-restricted affordable units, and secured a $700,000 community benefit after in‑meeting negotiation.
Milpitas — After extensive questioning and in-meeting negotiations over public benefits, the Milpitas City Council on May 19 approved entitlements and a development agreement for the final phase of The Fields, a long-planned mixed‑use district near the Great Mall.
Associate Planner Randy Biase summarized the application as a request to develop 109 for‑sale townhomes (including nine live‑work units) plus 10 accessory dwelling units on a 5.49‑acre vacant parcel known as lot 3A. The applicant proposed converting 22 rental units in the nearby Gideon apartment building into deed‑restricted below‑market‑rate (BMR) rental units to satisfy the city’s Affordable Housing Ordinance requirements while requesting density bonus incentives and concessions.
Applicant representatives said the plan would produce a mix of homeownership opportunities and neighborhood retail activation. "We are proposing 109 townhomes, inclusive of nine live‑work units, and 10 ADUs for a total of 119 units," Lyon Living representative Shauna Schaffner told the council, and she said the plan includes 18 low‑income and four very‑low‑income BMR rental units at Gideon.
Council members pressed staff and the applicant on three central issues: whether the project satisfied local density and active‑use expectations (staff said density averaging across The Fields and state density bonus law concessions allow the requested reductions), how the city will ensure the converted Gideon units remain affordable (staff said deed restrictions, a formal affordable housing agreement and monitoring through the city’s partner HouseKeys would provide ongoing oversight), and the adequacy of the DA’s cash public benefit.
On the latter point, councilmembers argued the initially proposed $400,000 contribution was low relative to lost impact fee revenue and other recent projects. Staff and the applicant negotiated during the meeting and the applicant agreed to increase the community benefit to $700,000; the revised figure was incorporated into the motion to approve.
The development agreement requires the city payment and conversion commitments to be documented in enforceable legal instruments; staff told the council the DA also preserves a minimum district average density and establishes a 55‑year covenant on the converted affordable units. The applicant emphasized a quick delivery timeline and said the conversion units are already built and could be deed‑restricted promptly.
The council voted unanimously to adopt the resolution approving the site development permit amendment, vesting tentative map, conditional use permit amendment, density bonus permit and development agreement for 1320 McCandless Drive with the DA amended to reflect a $700,000 community benefit.
What happens next: The DA and conditions require the applicant to identify which Gideon units will be converted prior to issuance of building permits for the townhomes; staff will execute the affordable housing agreement and monitor compliance with annual reporting, using HouseKeys as the city’s monitoring partner.
