M-2022-001 -The Rise Approval mailed Reed Moulds 6-23 CITY OF
CITY MANAGER'S OFFICE
CITY HALL
I'll 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3223 • FAX: (408) 777-3366
CUPERTINO CUPERTINO.ORG
June 3, 2022
Via Electronic and Regular Mail
Reed Moulds, Managing Director
Vallco Property Owner LLC
965 Page Mill Road
Palo Alto, CA 94304
SUBJECT: APPROVAL LETTER — THE RISE SB 35 DEVELOPMENT (FORMERLY
VALLCO TOWN CENTER) - MODIFICATION APPLICATION
This letter serves as ministerial approval ("Approval") of the "The Rise SB 35
Application" ("Application"), requesting modification of the Vallco Town Center
project approved pursuant to Government Code Section 65913.4 under Senate Bill 35
("SB 35"). The Application, which included four requested project entitlements, was
submitted to the City by Vallco Property Owner, LLC ("Applicant") on March 24, 2022
for the 50.82-acre Vallco Mall property located between Interstate 280 and Steven's
Creek Boulevard and on both sides of North Wolfe Road, with remaining project
application materials submitted on April 5, 2022.
This Approval is based on the Application and the additional updated plans, in
response to comments from the City, submitted by the Applicant on May 26 and May
27, together which is referred to as the "Project Application."
I. Project Approval
The following entitlements are approved:
a. Modification to Development Permit
b. Architectural and Site Approval-Major
c. Tentative Subdivision Map for Condominium Purposes
d. Tree Removal Permit
Under the State's and City's Density Bonus Laws, the Applicant continues to request a
35% density bonus in its Application. The Applicant continues to request three
concessions under the Density Bonus Laws, due to the amount of affordable housing
proposed in the Project Application. These concessions are as follows:
1. A concession to allow the Below Market Rate (BMR) units to be studios and one-
bedroom units instead of a mix of units comparable to the units within the
development pursuant to BMR Housing Mitigation Procedure Manual Section 2.3.4
(A);
2. A concession to allow the studio and one-bedroom BMR affordable units to be
smaller in size than the studio and one bedroom market rate units pursuant to BMR
Housing Mitigation Procedure Manual Section 2.3.4 (B); and
3. A concession to allow 400,000 square feet of retail, a reduction of 200,000 square feet,
where 600,000 square feet is required in the General Plan pursuant to Strategy LU-
19.1.4.
In 2018, the City determined that these three concessions: a) will result in identifiable
and actual costs to provide for affordable housing costs; b) will not result in specific,
adverse impacts upon public health or safety or the physical environment or any
property that is listed in the California Register of Historical Resources; and c) will not
be contrary to state or federal law. (Gov. Code, § 65915(d)(1)(A)-(C). The award of the
density bonus and concessions are not affected by the request for modification of the
approved project.
These Approvals, including the density bonus and the three concessions identified
above, are collectively referred to as the "Project," and are reflected in the plan set
included in Attachment "A."
This Approval does not cover encroachments or other improvements within the public
right-of-way, including but not limited to, the proposed intersection located between
Vallco Parkway and Highway 280 (right of way encroachments are subject to the City's
permitting review process) or proposed tree removals within the public right of way.
In addition, this Approval does not cover any signage, sign programs, construction
permits, or final map(s). Subsequent applications for these permits will be reviewed
prior to approval, consistent with the City's permit approval processes and the
requirements of Government Code section 65913.4.
II. Basis for Approval
Government Code Section 65913.4 (SB 35, as amended) sets forth a streamlined,
ministerial approval process for certain housing developments in jurisdictions that
have not made sufficient progress toward meeting their affordable housing goals for
above-moderate and lower income levels as mandated by the State. The California
Department of Housing and Community Development ("HCD") determined that the
City made sufficient progress toward its above moderate income housing goals but
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made insufficient progress toward its lower (very low and low) income housing goals.
Therefore, HCD determined that the City is subject to the streamlined, ministerial
review and approval provisions in Government Code Section 65913.4 for very low and
low income housing projects.
On September 21, 2018, the Vallco Town Center project was approved pursuant to SB
35. The Applicant submitted a request for modification of the approved project on
March 24, 2022. In addition to the Project Plans, the Project Application supporting
information the City reviewed in making this determination, was identified in the
Modification Legal Framework and Application Methodology. This information is
available on the City's website.
The Applicant's modification request is subject to a limited scope of review under
Government Code section 65913.4(g) unless the modification changes the total number
of residential units or total square footage of construction by 15 percent or more, not
including underground space. (Gov. Code, § 65913.4(g)(3).) The scope of review of a
qualified modification request under section 65913.4(g) is limited to determining
whether the modified project meets the statutory criteria for SB 35 eligibility and
whether the project complies with objective planning standards in effect at the time the
original project application was submitted. (Gov. Code, § 65913.4(g)(1)(B).) Staff
generally may not apply objective planning standards adopted after the March 2018
submittal date of the original Vallco SB 35 application if these requirements are met.In
addition, the City may not reconsider "prior determinations that are not affected by the
modification" (Gov. Code, § 65913.4(g)(4)) and must use "the same assumptions and
analytical methodology" that it used in approving the original application. (Gov. Code,
§ 65913.4(g)(1)(C).)
The modification request also includes a request for modification of the approved
tentative subdivision map for the project. The streamlined approval provisions of SB 35
apply to approval of a tentative subdivision map if"(A) [t]he development has received
or will receive financing or funding by means of a low-income housing tax credit," or
"(B) [t]he development is subject to the requirement that prevailing wages be paid, and
a skilled and trained workforce used." (Gov. Code, § 65913.4(a)(9).) A finding of
compliance with prevailing wage requirements was made in connection with the
approval of the original Vallco project and is not affected by the requested modification.
The tentative subdivision map will be reviewed and approved in compliance with the
Subdivision Map Act (Gov. Code, §§ 66410 - 66499.58). Under Government Code
section 65913.4(g), review must be limited to objective subdivision standards that were
in place at the time of the original application.
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Under Government Code section 65913.4(g)(2), the City must complete ministerial
review of the proposed modification request within 60 days. The deadline for
completing review of the Vallco/Rise modification request is June 3, 2022. This letter,
which serves as notice of the Approval of the modification request pursuant to
Government Code section 65913.4(g), is being issued within that 60-day time period.
The City has identified its basis for approval of the project in Attachment B.
III. Standard Project Requirements and Project Implementation Requirements
The Project Application is approved subject to the Standard Project Requirements and
Project Implementation Requirements (collectively "Requirements") set forth in
Attachment B. These Requirements identify objective General Plan, zoning, and/or
objective design review standards that were applied to the project at the time the
Application was submitted to the City on March 27, 2018. These Requirements are
uniformly applied to similar entitlement applications and are within the City's rules
and regulations, including its General Plan, General Plan Environmental Impact
Report, Municipal Code (including the zoning, subdivision and density bonus
provisions), BMR Housing Mitigation Procedural Manual, and other applicable permit
application forms and approvals, or reflect legal requirements imposed by other
agencies and/or state law.
Further, Government Code Section 65913.4 contains specific requirements and criteria
for a project to be subject to the streamlined, ministerial review and approval process.
In order to assure the Approval is implemented as required by Government Code
Section 65913.4, the City has included those in the Requirements in Attachment C.
IV.California Environmental Quality Act
This Approval is exempt from the California Environmental Quality Act("CEQA") due
to its ministerial nature. (Gov. Code, § 65913.4 (a); Pub. Resources Code, §21080(b)(1).)
V. Term of Approval
As mandated by Government Code Section 65913.4(e)(3), this Approval shall extend
the time during which the September 21, 2018 approval shall remain valid for an
additional 240 days.
Sincerely,
ahroop
City Manager
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cc: Benjamin Fu, Director of Community Development
Christopher Jensen, City Attorney
Matt Morley, Director of Public Works
Chad Mosley, Assistant Director of Public Works
Piu Ghosh, Planning Manager
Enclosures:
Attachment A - Approved Plans dated September 15, 2018 (due to size, copies are
available at the Community Development Department Planning
Division)
Attachment B -Basis for Approval
Attachment C - Standard Project Requirements and Project Implementation
Requirements
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