MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA MONDAY, NOVEMBER 15, 1999

The Council of the City of San Jose convened at 7:04 p.m. in City Council Chambers at City Hall for the 1999 General Plan Annual Review.

Present: Council Members - Chavez, Dando, Diaz, Diquisto, Fiscalini, LeZotte, Matthews, Powers, Shirakawa, Jr., Woody; Gonzales.

Absent: Council Members - None.

1999 ANNUAL REVIEW OF THE GENERAL PLAN

Mayor Gonzales stated this is the second evening of the City Council Public Hearing on the 1999 Annual Review of the General Plan; that copies of the agenda of the meeting and a public hearing schedule are available by the Chambers’ entrance, a copy of the General Plan Amendment Report containing Staff reports for the 1999 Annual Review is available at the Press Table, and maps of proposed amendments are posted on the side wall of the Chambers. He stated amendments would be considered in the order shown on the agenda, with the exception that GP99-7-2 will be heard before GP99-7-1. He stated that motions made tonight by the City Council regarding amendments to the General plan are considered “tentative”, that at the November 18, 1999 hearing Council will address the need to reconsider any of the tentative votes made this evening, and at the conclusion of the December 7, 1999 hearing, Council will take final action on the 1999 Annual Review. He stated tonight Council would consider land use amendments and associated text amendments to the General Plan for Council Districts 4, 5 and 7. He explained the procedure for public testimony from applicants and speakers in support and in opposition to the recommended action on General Plan Amendment requests.

Documents filed: (1) See General Plan minutes of November 8, 1999 memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated October 19, 1999, for an Overview Report of the 1999 Annual Review of San José’s General Plan and the General Plan amendment requests by District.

CONSENT

Upon motion by Council Member Shirakawa, Jr., seconded by Vice Mayor Fiscalini, and unanimously carried, the Consent Calendar was approved and the below noted items taken as indicated. Vote: 8-0-3-0. Absent: Chavez, Powers, Woody.

District 7

GP99-7-6: General Plan Amendment to change the Land Use/Transportation Diagram designation for property located on the south side of the eastern terminus of Phelan Avenue, 500 feet east of Senter Road, from Public Park/Open Space to Medium Density Residential (8-16 DU/AC) on a 4.7 acre site. (Staff). CEQA: Use of Negative Declaration (PDC 89-12-148). Staff recommends approval. Planning Commission recommends approval.

Discussion/Action: Staff/Planning Commission recommendation for Medium Density Residential [8-16 DU/AC] on 4.7 acres was tentatively approved. Vote: 8-0-3-0. Absent: Chavez, Powers, Woody.

END OF CONSENT CALENDAR

PUBLIC HEARINGS

ITEMS TO BE DEFERRED

GP99-7-5: General Plan Amendment to change the Land Use/Transportation Diagram designation for property located on the northeast corner of Capitol Expressway and Vista Park Drive, from Private Recreation to Medium High Density Residential (12-25 DU/AC) on a 13.2 acre site. (Capitol Vista Oaks Limited Partnership/Carr, McClellan, Ingersoll, Thompson & Horn). CEQA: Incomplete. Staff Recommends deferral to the 2000 Annual Review. Planning Commission recommends deferral to the 2000 Annual Review.

Discussion/Action: Upon motion by Council Member Fiscalini, seconded by Council Member Shirakawa, Jr., and unanimously carried, the recommendation of the Planning Director and Planning Commission for deferral to the 2000 Annual Review was tentatively approved. Vote: 8-0-3-0. Absent: Chavez, Powers, Woody.

ITEMS FOR DISCUSSION

District 4

Items GP99-4-4 and GP99-T-2 were heard together:

GP99-4-4: General Plan Amendment request to change the Land Use/Transportation Diagram designation for property located on the north side of Ridder Park Drive, east of Coyote Creek from Heavy Industrial with Mixed Industrial Overlay to Industrial Park with Mixed Industrial Overlay on approximately 15.6 acres. (Knight-Ridder/HMH, Incorporated). CEQA: Negative Declaration. Staff recommends No Change in the General Plan. Planning Commission recommends No Change in the General Plan.

Items GP99-4-4 and GP99-T-2 were heard together:

GP99-T-2: Text Amendment to modify the Urban Design Policies to allow for building heights of up to 55 feet for the subject site of GP99-04-04. (Knight-Ridder/HMH, Incorporated). CEQA: Negative Declaration. Staff recommends No Change in the General Plan. Planning Commission recommends No Change in the General Plan.

Documents filed: Memorandum from Mayor Gonzales and Council Member Matthews, dated November 15, 1999, recommending approval of the applicant’s amendment request.

Discussion/Action: Director of Planning, Building and Code Enforcement, James R. Derryberry, stated the subject property is on the corner of an area that is designed for heavy industrial use at the interchange of Brokaw Road and Interstate 880. He stated both Staff and the Planning Commission recommend no change on the parcel because of the City’s history in trying to protect the heavy-industrially designated and zoned areas of the City, which are important support industry areas for companies referred to as industrial services and suppliers that support high technology and cannot locate in many areas of the City.. He stated that in the last few years several hundred acres of heavy industrially designated properties have been converted, that the adjacent use is designated as heavy industrial, and because this is one of the larger remaining vacant properties, Staff and the Planning Commission recommend this area be preserved. Alan Silverglat, Knight-Ridder, owner of the property, stated the property is adjacent to the San José Mercury News building and had been preserved for possible future expansion there; however, since deciding to locate the corporate headquarters in downtown San José, the property is now redundant to the needs of the San José Mercury. He stated Knight Ridder had other opportunities to have the land developed for retail, but made a conscious decision not to see it developed in that fashion, and noted there will be over 1700 acres left for heavy industrial applications should this zoning be permitted to proceed. Eric Luhrs, Spieker Properties, stated the mixed industrial overlay allows for flexibility other than heavy industrial uses, and the applicant is requesting modification to allow Office/R&D to be utilized that provides an important identity for a tenant or company located at the site and serves as a gateway to the City of San José and San José International Airport. He stated the proposal provides a great opportunity to get the land into production and generate additional fees and he requested the Council’s support. Council Member Matthews stated it is not often she goes contrary to the recommendations of the Staff and Planning Commission. However, in this case, she supports the applicant’s request for the land use amendment and associated text amendment. She stated the Highway 880 area is a gateway into the City and the appearance of the heavy industrial area there would be improved by the project, which she expects to be of world-class architecture. She stated the text amendment would permit an increased height to allow the developer to screen the roof and the higher building would permit more open space, especially near the creek, a change for which Staff indicated support. In response to questions from Vice Mayor Fiscalini, Director Derryberry stated the development would be expected to trigger significant redesign of the Interstate 880 interchange, which does not meet current Caltrans design standards. Mayor Gonzales stated the interchange will also benefit from Measure A/B upgrades. Upon motion by Council Member Matthews, seconded by Council Member Dando, and unanimously carried, the recommendation by Mayor Gonzales and Council Member Matthews, dated November 15, 1999, to change the Land Use/Transportation Diagram designation for said property to Industrial Park with Mixed Industrial Overlay on approximately 15.6 acres, and the requested text amendment, were tentatively approved. Vote: 9-0-2-0. Absent: Powers, Woody.

Council Member Powers arrived at this point of the meeting.

GP99-4-5: General Plan Amendment to change the Land Use/Transportation Diagram designation for property located on the southwest corner of Piedmont Road and Sierra Road from Neighborhood Community/Commercial to Medium Density Residential (8-16 DU/AC) on a 6.8 portion of a 7.6 acre site. (Summerhill Homes). CEQA: Negative Declaration. Staff recommends approval. Planning Commission recommends approval.

Documents filed: (1) Memorandum from Council Member Matthews, dated November 15, 1999, recommending approval of the applicant’s amendment request. (2) Correspondence from eleven individuals opposing the proposed amendment. (3) A petition from approximately 130 signatories in opposition to the proposed amendment.

Discussion/Action: Director of Planning, Building and Code Enforcement, James R. Derryberry, stated Staff is recommending the Land use’ Transportation Diagram designation be changed to Residential on approximately 6.8 acres, with the remainder for some commercial development at the corner to allow the existing tenants who are successful to remain in that center to continue to serve the community. He stated this was pointed out at the Planning Commission meeting as something the neighborhood wanted done. Joe Head, Vice President, Summerhill Homes, stated the applicant is proposing taking a neighborhood shopping center that lost its anchor tenant several years ago when Lucky Supermarket relocated and has since been in a state of slow decline. He stated the Office of Economic Development worked with the owners to revive the center before concluding the center at that location was not economically viable. He stated Summerhill Homes has worked with the community to retain a 1.4 acre portion of the existing property to accommodate those tenants who wish to remain on the site, and worked with the Berryessa Citizens Advisory Committee in formatting both the remainder commercial properties and the proposal to build approximately 64 single family homes, a density which Summerhill believes is an appropriate use that allows for a creative and quality development on the site. The following individuals spoke in support of the proposal: Michael Yoon, Piedmont Hills Cleaners; Chuck Reed; Arista Nelson, Arista’s Flowers and Dolls; and these individuals spoke in opposition: Dennis Cummings, Melinda Chen translated for Boikong, Fong-Ting Ko, Kay Chang, Caitlin An, Tso-Yee Hsu, Jeff Smith, Hui-Fen Ton and Kansen Chu. Summerhill Homes Vice President Joe Head stated in response to issues raised by the speakers that Summerhill is working to accommodate all of the tenants who wish to remain, that a landscape barrier will be established, and the building will be refurbished and will fit in with the new project being built. Council Member Matthews stated the center has declined and is unhealthy, that she has worked with the owner and attempts to market the center proved the center is not viable. She expressed confidence the proposed development, with some commercial establishments remaining on the corner, is the appropriate action. Upon motion by Council Member Matthews, seconded by Council Member Dando, and unanimously carried, the recommendations of the Planning Director and Planning Commission for amendment of the land use designation to Medium Density Residential (8-16 DU/AC) on a 6.8 portion of a 7.6 acre site, was tentatively approved. Vote: 10-0-1-0. Absent: Woody.

District 5

GP99-5-1: General Plan Amendment to change the Land Use/Transportation Diagram designation for property located on the west side of South King Road, between Virginia Place and approximately 100 feet southerly of Virginia Avenue from Medium Low Density Residential (8 DU/AC) to Neighborhood/Community Commercial on a 1.2 acre site. (Ampelio Meza). CEQA: Negative Declaration. Staff recommends Neighborhood/Community Commercial on 1.03 acres and Medium Density Residential (8-16 DU/AC) on 0.17 acre. Planning Commission recommends Neighborhood/Community Commercial on 1.03 acres and Medium Density Residential (8-16 DU/AC) on 0.17 acre.

Documents filed: Memorandum from Council Member Diaz, dated November 15, 1999, recommending approval of the applicant’s amendment request for to Neighborhood/Community Commercial on a 1.2 acre site, recommending the “drive-through” entrance for the restaurant be relocated from the front to the side of the site, and requesting Staff to work with the applicant to implement that change in the permit process.

Discussion/Action: Pedro Caceres, representing the applicant, spoke in support of the amendment. Council Member Diaz stated he supports the applicant’s request for Neighborhood/Community Commercial in the 1.2 acre site rather than the Planning Director’s and Planning Commission’s recommendation. He stated the applicant has made substantial improvements to the Pink Elephant stores and wants to improve on the buildings and need the additional residential lot to convert to commercial to improve his access for parking and traffic circulation on the site. He requested Staff to traffic flow. Upon motion by Council Member Diaz, seconded by Vice Mayor Fiscalini, work with the applicant for implementation at the permit stage, the relocation of the entrance of the drive-through to the restaurant from the front to the side to facilitate and unanimously carried, of Council Member Diaz’s recommendations dated November 15, 1999, to approve the applicant’s request for amendment to Neighborhood/Community Commercial on a 1.2 acre site was tentatively approved, and the drive-through entrance relocation referred to Staff for implementation at the permit stage. Vote: 10-0-1-0. Absent: Woody.

District 7

GP99-7-2: General Plan Amendment to change the Land Use/Transportation Diagram designation for property located on the northerly side of Aborn Road, 100 feet easterly of Stanhope Drive, from Industrial Park to Medium Density Residential (8-16 DU/AC) on a 8.8 acre site. (Summerhill Homes). CEQA: Negative Declaration. Staff recommends Medium Low Density Residential (8 DU/AC). Planning Commission recommends No Change in the General Plan.

Documents filed: (1) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated November 1, 1999, amending the Staff’s recommendation to Medium Low Density Residential (8 DU/AC) on the 8.8 acre site. (2) Council Member Shirakawa, Jr., dated November 9, 1999, recommending approval of the applicant’s request for amendment to Medium Density Residential (8-16 DU/AC) on 8.8 acres.

Discussion/Action: Planning Director Derryberry stated that both project GP99-7-2 and GP99-7-1 are properties, which have allocations for a set number of residential units under the Evergreen Development Policy. He stated Staff is supporting a change in the land use from Light Industrial to Residential with a density of no more than eight DU/AC because that is the amount of units that could be developed under the current allocation. He stated it would be Staff’s preference to resolve the policy issue with regard to the Evergreen Development Policy relating to future allocations prior to changing the land use to something above that which could be achieved under the current Evergreen Development Policy. Joe Head, on behalf of applicant Summerhill Homes, stated the 8-16 DU/AC designation would enable Summerhill to create quality homes at an entry-level price and to complete public improvements that are needed in that area. In light of the broad policy issues dealing with allocations, he stated when Staff returns to Council in January or February 2000, an equitable solution that will enable Summerhill to build to the entire site will be provided. Council Member Shirakawa, Jr. stated the proposed project provides a good opportunity for infrastructure improvements and he concurs with the higher density requested by the applicant. In response to a question by Council Member LeZotte, Director Derryberry stated if it is not possible to increase the allocations on these properties, they could develop up to the current allocations, which on this property would be 39 units. Upon motion by Council Member Shirakawa, Jr., seconded by Vice Mayor Fiscalini, and unanimously carried, the recommendations in Council Member Shirakawa, Jr. memorandum dated November 9, 1999, for Medium Density Residential [8-16 DU/AC] on 8.8 acres was tentatively approved. Vote: 10-0-1-0. Absent: Woody.

GP99-7-1: General Plan Amendment to change the Land Use/Transportation Diagram designation for property located on both sides of Stallion Way, approximately 150 feet southerly of Staghorn Lane from Medium Low Density Residential (8 DU/AC) to Medium Density Residential (8-16 DU/AC) on a 3.67 acre site. (Bhupindar Dhillon). CEQA: Negative Declaration. Staff recommends No Change in the General Plan. Planning Commission recommends No Change in the General Plan.

Documents filed: Memorandum from Council Member Shirakawa, Jr., dated November 9, 1999, recommending approval of the applicant’s request for amendment to Medium Density Residential (8-16 DU/AC) on a 3.67-acre site.

Discussion/Action: Planning Director Derryberry stated his comments on GP99-7-2 are applicable to this site also. Bhupindar S. Dhillan, the applicant, spoke in support of approval of the request. He stated the property is in a blighted area and has not been developed because the EDP allocation of 12 units is too low, that 8-16 DU/AC is consistent with the City’s maximization strategy for infill housing and with other infill projects approved to date. Council Member Shirakawa, Jr. stated this issue differs only slightly from the previous property in that it is already designated Residential [8 DU/AC] and he is recommending [8-16 DU/AC] for the same reasons. He stated the parcels are adjoining and should be treated the same. Upon motion by Council Member Shirakawa, Jr., seconded by Council Member Powers, and unanimously carried, the recommendations by Council Member Shirakawa, Jr., dated November 9, 1999, for amendment to Medium Density Residential [8-16 DU/AC] on 3.67 acres was tentatively approved. Vote: 10-0-1-0. Absent: Woody.

Council Member Woody arrived during the discussion of Item GP99-7-3.

GP99-7-3: General Plan Amendment to change the Land Use/Transportation Diagram designation for property located on the northwest corner of Monterey Road and Curtner Avenue, from Heavy Industrial with Mixed Industrial Overlay to Industrial Park with Mixed Industrial Overlay on a 6.9 acre site. (Green Valley Corp./Barry Swenson, Builder). CEQA: Negative Declaration. Staff recommends No Change in the General Plan. Planning Commission recommends No Change in the General Plan.

Documents filed: Council Member Shirakawa, Jr., dated November 9, 1999, recommending approval of the applicant’s request for amendment to Industrial Park with a Mixed Industrial Overlay.

Discussion/Action: Planning Director Derryberry stated this property is another example of a large area with a designation of heavy industrial, with a portion designated for mixed overlay. He stated the property’s corner location and accessibility make it adaptable for some alternative use to heavy industrial and Staff’s interest is in preserving areas for large industrial designation for the industrial service and supplier industries that are developing, particularly in this area of District 7 in support of the high technology complexes in Rincon and Edenvale. Mark Hansen, representing the applicant, Barry Swenson Builders/Green Valley Corporation, stated this area is part of a larger piece, which is currently owned and operated by General Electric, a long-standing tenant in San José, for their nuclear division. As General Electric downsized their nuclear division and worked with Barry Swenson to reconfigure their site and review their surplus lands, this parcel was identified for subdivision and consideration of different uses. He stated the applicant was advised by City Staff that site plans that were developed were inappropriate for an M-4 zoning and a request for a General Plan amendment to Industry Park was suggested, and while the types of users being considered are not necessarily office, the M-4 zoning was too restrictive of the level of improvements that could be made on the site. He stated the Industrial Park designation with Mixed Industrial overlay would accommodate a variety of tenants and be desirable for the location, which is a gateway location to a Redevelopment Area, the Monterey Corridor. Council Member Shirakawa, Jr. stated it is not often that he goes against the recommendations of the Staff; however, for this site, he thinks the applicant has proposed a good project and supports the request. Upon motion by Council Member Shirakawa, Jr., seconded by Vice Mayor Fiscalini, and unanimously carried, the recommendations in Council Member Shirakawa, Jr. memorandum dated November 9, 1999, for amendment to Industrial Park with a Mixed Industrial Overlay on 6.9 acres was tentatively approved. Vote: 11-0-0-0.

District 2

Initiate an Area Development Policy for Edenvale (staff) CEQA: Pending. Planning staff recommends approval. Planning Commission recommends approval.

Discussion/Action: James Derryberry, Director of Planning, Building and Code Enforcement, stated the General Plan requires that area development policies be initiated during the annual amendment process even though action on a particular area development process occurs at some other point on the calendar. He stated an analysis that Public Works and Planning has been working on with the Redevelopment Agency to deal with level of service issues and the potential development in Edenvale will come to Council next year. Upon motion by Council Member Powers, seconded by Council Member Shirakawa, Jr., and unanimously carried, the recommendation of the Planning Director and Planning Commission for authorization to initiate said Area Development Policy for Edenvale was tentatively approved. Vote: 11-0-0-0.

ADJOURNMENT

The Council of the City of San José adjourned the meeting at 8:15 p.m. and continued the Public Hearing on the 1999 Annual Review of the General Plan to November 18, 1999, at 7:00 p.m. in the City Council Chambers.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK