On May 11, 2016, the Planning Commission voted (Commissioner Bit-Badal opposed) to recommend that the City Council:

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1 COUNCIL AGENDA: 6/14/16 ITEM: 11.4 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Planning Commission SUBJECT: SEE BELOW DATE: May 23, 2016 COUNCIL DISTRICT: 3 SUBJECT: FILE NOS. PDC & PD PLANNED DEVELOPMENT REZONING FROM THE LI LIGHT INDUSTRIAL ZONING DISTRICT TO THE DC(PD) PLANNED DEVELOPMENT ZONING DISTRICT TO ALLOW UP TO A TEN- STORY MIXED-USE BUILDING WITH 54 MULTI-FAMILY RESIDENTIAL UNITS AND APPROXIMATELY 1,856 SQUARE FEET OF GROUND FLOOR COMMERCIAL SPACE, AND A PLANNED DEVELOPMENT PERMIT TO ALLOW THE DEMOLITION OF A SINGLE FAMILY RESIDENCE, AND THE CONSTRUCTION OF A TEN-STORY MIXED-USE BUILDING WITH 54 MULTI-FAMILY RESIDENTIAL UNITS AND APPROXIMATELY 1,856 SQUARE FEET OF GROUND FLOOR COMMERCIAL SPACE WITH ZERO PARKING ON AN APPROXIMATELY GROSS ACRE SITE LOCATED AT THE NORTHEAST CORNER OF SOUTH MONTGOMERY STREET AND LORRAINE AVENUE (565 LORRAINE AVENUE). RECOMMENDATION On May 11, 2016, the Planning Commission voted (Commissioner Bit-Badal opposed) to recommend that the City Council: 1. Adopt a resolution approving the Montgomery 7 Addendum to the Final Program Environmental Impact Report for the Diridon Station Area Plan (Resolution No ), the Final Program Environmental Impact Report for the Envision San José 2040 General Plan (Resolution No ) and the Envision San Jose 2040 General Plan Supplemental Environmental Impact Report (Resolution No ), all in accordance to California Environmental Quality Act, as amended, and adoption of the associated Mitigation Monitoring and Reporting Program. 2. Consider an ordinance rezoning the real property located at the northeast corner of the intersection of South Montgomery Street and Lorraine Avenue (565 Lorraine Avenue) from the LI Light Industrial Zoning District to the DC(PD) Planned Development Zoning District to allow a mixed use development with up to 54 residential units with approximately 1,856

2 HONORABLE MAYOR AND CITY COUNCIL May 23, 2016 Subject: File Nos. PDC & PD Page 2 square feet of ground floor commercial space with zero parking located on approximately gross acre site. 3. Adopt a resolution approving the Planned Development Permit to allow the construction of a mixed use development with 54 residential units with approximately 1,856 square feet of ground floor commercial space with zero parking located on a gross acre site at 565 Lorraine Avenue. OUTCOME Should the City Council approve the Planned Development Rezoning and Planned Development Permit, the project site would be rezoned to allow the demolition of one single-family residence and the construction of 54 multi-family dwelling units with approximately 1,856 square feet of ground floor commercial space. BACKGROUND On May 11, 2016, the Planning Commission held a public hearing and considered the proposed Addendum, Planned Development Rezoning, and Planned Development Permit. Staff Presentation Staff provided an update on revisions to the proposed Planned Development Permit Resolution with additions of two new project conditions in regards to a requirement of a Determination of No Hazard from the Federal Aviation Administration (FAA), prior to issuance of building permits, and requiring a Permit Adjustment if additional conditions are required by the FAA. Under federal regulations applicable to this project site, any proposed structure higher than approximately 65 feet above ground must be submitted to the FAA for airspace safety review. Staff also discussed a letter from TransForm outlining its GreenTRIP program requirements for the project to qualify for GreenTrip certification and how the applicant is off-setting the lack of parking. GreenTRIP is a certification program operated by TransForm, a local nonprofit promoting diverse transportation choices. The GreenTrip certificate program works with developers by certifying projects that meet the GreenTrip various criteria to encourage residents to drive less and increase their transportation options. Staff then proceeded to introduce the project and discuss the application history. Staff summarized a previous rezoning application (File No.C13-042) that was filed in 2013 to rezone the site to the DC Downtown Primary Commercial Zoning District. The Planning Commission previously recommended denial of the previous rezoning application based on community opposition to the project and their inability to review a Site Development application. The Planning Commission directed the applicant to work with adjacent neighborhoods to potentially consolidate parcels to build a larger project to complement the potential ballpark across the site. Staff provided additional summary of City Council s action on August 19, 2014 and the zoning protest filed against the proposed rezoning. The City Council considered the zoning protest and by a vote of failed to

3 HONORABLE MAYOR AND CITY COUNCIL May 23, 2016 Subject: File Nos. PDC & PD Page 3 override the zoning protest in accordance with Section of the Municipal Code (requiring 2/3 or 8 affirmative votes to override a zoning protest). The City Council then directed the applicant to consider working with the adjacent neighbors who brought forth the Zoning Protest. Staff then provided an overview of how the project and surrounding environment have changed since the previous application in In particular: The prior application only included a rezoning without a Site Development application before the Planning Commission and City Council. The project proposal now includes both a Planned Development Rezoning and Planned Development Permit. The prior project was heard at the Planning Commission on March 12, 2014, which was prior to the adoption of the Diridon Station Area Plan. The City Council adopted the Diridon Station Area Plan on June 17, With the proposed project, staff has been able to analyze the project proposal for consistency with the adopted Diridon Station Area Plan. The prior project was for a 30 unit, multi-family, mixed use building with 2,507 square feet of commercial space. The current proposed project is a 54 unit multi-family mixed use building with 1,856 square feet of commercial space. As part of the proposed Transportation Demand Management (TDM) plan, the applicant has agreed to work with TransForm to receive a GreenTRIP platinum certification that will reduce vehicle trips, excessive parking and greenhouse gases, while making transportation more affordable. The applicant has been working with adjacent owners to exchange parcels to allow additional development. The project proposal includes a public space at the southwest corner of the project, and the architecture of the building has been substantially improved with varying materials, a rooftop terrace, and vertical and horizontal breaks to the building to provide visual interest. Applicant Presentation The applicant discussed how the project has been improved from the previous proposal. The increased density and inclusion of a TDM plan that includes Rideshare, Bikeshare, and EcoPasses, enables the development to be marketed toward a renter who will not own a car. There has been a transformation in Downtown toward multi-modal access. Recent trends also indicate a reduction of the number of people obtaining driver licenses. The site s corner location and close proximity to Diridon Station is ideal for this type of project. The applicant discussed how they own other properties and have been in discussion with adjacent owners to potentially exchange parcels to continue developing the remainder of the block. The applicant is also committed to receiving GreenTRIP certification and voluntarily included it as a condition in the Planned Development Permit. Public Hearing One member of the public spoke on the item. The speaker stated she is not against development; however, she has a concern it will set a precedent for similar projects on other single-family lots. The speaker still believes that the applicant should acquire other properties as directed by Council

4 HONORABLE MAYOR AND CITY COUNCIL May 23, 2016 Subject: File Nos. PDC & PD Page 4 and Planning Commission with the previous rezoning, as it is not appropriate for such a dense project on a small size lot. Planning Commission Discussion The Planning Commissioners discussed how the project has evolved and increased in density and height. Commissioner O Halloran agreed that the situation and context of the project location has changed. The Commissioner asked if a ballpark will be developed, and staff stated that a ballpark is currently not moving forward. Commissioner Abelite discussed how the applicant has made the effort to work with adjacent owners, and that requiring them to consolidate parcels before the Commission will approve actually hurts the ability of the applicant to negotiate land acquisition. Commissioner Yesney stated that the parcel is quite unique in several aspects: 1) the shape and access to three different streets, 2) the parcel is not adjacent to single-family homes, and 3) it is located at a visually prominent corner. Therefore, the project would not set a precedent for other parcels that lack such characteristics. Staff provided further information on how the project would comply with the land use, height, and pedestrian activation as prescribed in the Diridon Station Area Plan. Rosalynn Hughley, Assistant Director of Planning, Building and Code Enforcement, responded to Commissioner O Halloran s question about whether this project would set a precedent for other projects. She stated the project is implementing what the City has already approved as part of the Diridon Station Area Plan in terms of height, density, and land use designation. Commissioner Ballard questioned what would be done if a resident who owns a car moves into the development and parking becomes a problem. She asked for clarification on what mechanisms could address those issues. Staff stated that the project is adjacent to a Residential Parking Permit area. Since the project is rental, if parking becomes a problem for the residents of the development, it is much easier for them to move or secure an alternative off-site parking space. Commissioner Yesney made a motion to recommend to the City Council to consider the addendum and the rezoning ordinance and adopt the Planned Development Permit resolution with the inclusion of a condition that the applicant has voluntarily agreed to secure a GreenTRIP certification, or similar transportation management agreement, or certification to the discretion and approval of the Director of the Department of Planning, Building, and Code Enforcement. The motion was seconded by Commissioner Ballard, who stated she was excited about the project as it is targeting a market niche seeking an urban environment, which chooses not to own an automobile and prefers smaller units. Commissioner Abelit echoed Commissioner Ballard s comments and stated his support of the project. Commissioner O Halloran supported the project but had reservation in that zero parking might eventually become a problem in the future. However, he noted that the driving behavior near the Diridon area could change. Commissioner Bit-Badal did not support the motion. She feared that within five years, projects like this will be a problem because people will always want cars. Commissioner Yob stated that she would support the motion because the project conforms to the documents that guide the City and that the City needs to keep pushing these new development types

5 HONORABLE MAYOR AND CITY COUNCIL May 23, 2016 Subject: File Nos. PDC & PD Page 5 that match the changing demographics and population. The Planning Commission voted (Commissioner Bit-Badal opposed) to recommend approval to City Council. ANALYSIS Analysis of the issues for the proposed Planned Development Rezoning and Planned Development Permit and conformance with the General Plan and Diridon Station Area Plan Urban Village is contained in the attached Staff Report. EVALUATION AND FOLLOW UP Should the City Council approve the Planned Development Rezoning and Planned Development Permit, the project site would be approved for the demolition of the single-family residence and allow the applicant to apply for a building permit to construct a ten-story building with 54 multifamily dwelling units and approximately 1,856 square feet of ground floor commercial space with zero on-site parking. PUBLIC OUTREACH Staff followed Council Policy 6-30: Public Outreach Policy in order to inform the public about the project. A community meeting for the project was held on March 29, There were approximately 12 community members in attendance at the meeting. There was a mixture of support and opposition to the project. Attendees did have some concern about parking and the scale of the project. A notice of the public hearing was distributed to the owners and tenants of all properties located within 500 feet of the project site and posted on the City website. Notification of the application proposals was also published in a local newspaper, the Post Record. The Staff Report was posted on the City s website. Staff has been available to respond to questions from the public. COORDINATION Preparation of this memorandum has been coordinated with the City Attorney s Office.

6 HONORABLE MAYOR AND CITY COUNCIL May 23, 2016 Subject: File Nos. PDC & PD Page 6 CEQA Addendum to the Diridon Station Area Final Environmental Impact Report (Resolution No ), the Envision San Jose 2040 General Plan Final Program Environmental Impact Report (Resolution No ) and Supplemental Environmental Impact Report (Resolution 77617). Please see the attached Planning Staff Report and proposed resolution approving the Addendum and adopting the Mitigation Monitoring and Reporting Program for additional information. /s/ HARRY FREITAS, SECRETARY Planning Commission For questions please contact Steve McHarris, Planning Official, at Attachments: Planning Commission Staff Report TransForm GreenTrip Letter

7 PC AGENDA: ITEM: 4.a. PLANNING COMMISSION STAFF REPORT File No. PDC & PD Applicant: Kurt Anderson Location Northeast corner of the intersection of South Montgomery Street and Lorraine Avenue (565 Lorraine Avenue). Existing Zoning LI Light Industrial Council District 3 Historic Resource N/A Annexation Date: March 22, 2010 (Gardner) CEQA: Addendum to the Final Program EIR Diridon Station Area EIR (Resolution No ), the Final Program EIR for the Envision San José 2040 General Plan (Resolution No ) and the Envision San Jose 2040 General Plan Supplemental Environmental Impact Report (Resolution 77617). APPLICATION SUMMARY: Planned Development Rezoning File No. PDC Planned Development Rezoning from the LI Light Industrial Zoning District to DC(PD) Planned Development Zoning District to allow a ten-story mixed-use building that includes approximately 1,856 square feet of ground floor commercial space and up to 54 residential units on an approximately gross acre site. Planned Development Permit File No. PD Planned Development Permit to allow the construction of a ten-story mixed-use building that includes approximately 1,856 square feet of ground floor commercial space and up to 54 residential units on an approximately gross acre site. RECOMMENDATION: Planning staff recommends that the Planning Commission recommend to the City Council: Consider the Addendum the Addendum to the Final Program EIR Diridon Station Area EIR (Resolution No ), the Final Program EIR for the Envision San José 2040 General Plan (Resolution No ) and the Envision San Jose 2040 General Plan Supplemental Environmental Impact Report (Resolution 77617) and adoption of associated Mitigation Monitoring and Reporting Program (MMRP), all in accordance with CEQA. Consider an ordinance adopting the proposed Planned Development Rezoning, the real property located at 565 Lorraine Avenue, from the Light Industrial Zoning District to the A(PD) Zoning District to allow a mixed use development with approximately 1,856 square feet of ground floor commercial and space up to 54 residential units on a gross acre site.

8 File Nos. PDC & PD Page 2 of 9 Adopt a resolution approving the Planned Development Permit to allow the construction of a mixed use development with approximately 1,856 square feet of ground floor commercial and space up to 54 residential units on a gross acre site at 565 Lorraine Avenue. PROJECT DATA GENERAL PLAN CONSISTENCY General Plan Designation Downtown Consistent Inconsistent Consistent Policies CD-1.17, CD-2.4, CD-2.8, CD-3.5, CD-6.1, CD-7.9, H-4.3, LU-2.1, LU-3.5, LU-10.3, LU-10.4, TR-1.1, TR-3.3, TR-4.1, and TR-8.12 Inconsistent Policies None SURROUNDING USES General Plan Land Use Zoning Existing Use North Downtown LI Light Industrial Office Building South Downtown LI Light Industrial and CG Commercial General Church and Commercial Retail East Downtown LI Light Industrial Vacant Lot West Open Space, Parklands, and Habitat LI Light Industrial San José Fire Department Training Facility RELATED APPROVALS Date Action 03/22/10 Annexation (Gardner) PROJECT DESCRIPTION On August , the applicant Kurt Anderson, filed for a Planned Development Rezoning of the subject gross acre site from the LI Light Industrial Zoning District to DC(PD) Planned Development Zoning District. The applicant also filed a Planned Development Permit to allow the construction of a ten-story mixed-use building that includes approximately 1,856 square feet of ground floor commercial space and up to 54 residential units. The subject development is proposing a mixed-use development with a density of 529 dwelling units to an acre with zero on-site parking. The project will implement a transportation and parking management program with free VTA Eco Passes, carshare membership, and since the site is outside the boundaries of Delmas Park Residential Parking Permit Program, residents of the project will not be issued parking permits. Figure 1: Existing Zoning Map

9 Background File Nos. PDC & PD Page 3 of 9 On August 19, 2014 a previous application to rezone the site to the Downtown Zoning District (File No. C13-042) was taken before City Council. A valid zoning protest was file by the owners of nearby sites. The City Council by a vote of 7-4 was not able to override the zoning protest. The council instructed the applicant to work with the nearby owners about potentially combining parcels for a larger project and to resolve potential issues with parking. The applicant has since worked with the nearby neighbors to discuss potential redevelopment of other sites that the applicant and other owners own. The applicant has modified their project to include new transit management requirements and strategies to reduce the need for parking for future tenants of the mixed-use project. Site and Surrounding Uses The gross acre corner lot is developed with a one-story single family home built in 1918, adjacent to a vacant lot. The site is a bounded by industrial uses to the west, south of Lorraine Avenue, and north of Park Avenue. Pedestrian access to the site is provided from by Lorraine Avenue and Montgomery Street. The neighborhood around the site is a mixed of single-family houses and a few industrial and commercial uses mixed within the block of the development. Project Design Figure 2: Aerial Map The proposed project is located at the end of a block in an area that has been designated by the General Plan and Diridon Station Area Plan Urban Village for Downtown uses. The proposed project will be the densest and tallest development on block with a ten-story building, 1,856 square feet of ground floor commercial use, and 54 residential units on a small lot that is approximately a tenth of an acre. This project is a transit oriented development with no on-site parking and within close proximity to Diridon Station, Santa Clara Valley Transportation Authority Lightrail (VTA), Caltrain, and eventually Bay Area Rapid Transit (BART). The proposed project fully maximizes the site with zero setbacks on all sides. The residential development will include 54 studio unit types ranging from 423 square feet to 520 square feet. Each unit will have their own bike rack and over 60% of the units will have outdoor balconies. There will be a

10 File Nos. PDC & PD Page 4 of 9 3,436 square foot rooftop terrace and a ground floor corner public plaza with an anticipated future art installation. The project will utilized a mix of materials including: metal panels, composition panel with wood veneer, stone veneer, stucco and tempered glass. As a result of the curvature of the lot, the building provides a rounded edge at the corner of Lorraine Avenue and Montgomery street, which adds a distinct shape to the building. The rear of the building will have a mural and/or design elements until future developments are built adjacent to the project. The design and layout is intended to attract an urban residents, that embrace the transit connectivity of downtown and does not require large living space. ANALYSIS The project is within the Downtown Growth Area and the Diridon Station Area Plan Urban Village. The site has an Urban Village land use designation of Downtown. The proposed rezoning and Planned Development Permit was analyzed with respect to conformance with the 1) Envision San Jose 2040 General Plan, 2) Diridon Station Area Plan Urban Village, 3) Planned Development Permit Findings, 4) CEQA. Figure 3: General Plan Designation Map Envision San José 2040 General Plan Conformance The subject site has a land use designation of Downtown on the General Plan Land Use/Transportation Diagram within the boundary of Diridon Station Area Plan Urban Village. The property is also within the Southern Zone of the Diridon Station Area Plan (DSAP) with a land use designation of Downtown. This DSAP designation supports residential uses as well as non-residential uses such as office, retail, service, hotel, and residential/commercial mixed use. The rezoning and Planned Development Permit would allow for redevelopment with uses and intensity consistent with DSAP Downtown land use designation, and is supported by and furthers the following General Plan goals and policies, discussed as follows: 1. Community Design Policy CD-1.17: Minimize the footprint and visibility of parking areas. Where parking areas are necessary, provide aesthetically pleasing and visually interesting parking garages with clearly identified pedestrian entrances and walkways. Encourage designs that encapsulate parking facilities behind active building space or screen parked vehicles from view from the public realm. Ensure that garage lighting does not impact adjacent uses, and to the extent feasible, avoid impacts of headlights on adjacent land uses. 2. Community Design Policy CD-3.5: Encourage shared and alternative parking arrangements and allow parking reductions when warranted by parking demand. 3. Land Use Policy LU-3.5: Balance the need for parking to support a thriving Downtown with the need to minimize the impacts of parking upon a vibrant pedestrian and transit oriented urban environment. Provide for the needs of bicyclists and pedestrians, including adequate bicycle parking areas and design measures to promote bicyclist and pedestrian safety.

11 File Nos. PDC & PD Page 5 of 9 4. Land Use Policy LU-10-3: Develop residentially- and mixed-use-designated lands adjacent to major transit facilities at high densities to reduce motor vehicle travel by encouraging the use of public transit. 5. Transportation Policy TR-1.1: Accommodate and encourage use of non-automobile transportation modes to achieve San José s mobility goals and reduce vehicle trip generation and vehicle miles traveled (VMT). 6. Transportation Policy TR-3.3: As part of the development review process, require that new development along existing and planned transit facilities consist of land use and development types and intensities that contribute toward transit ridership. In addition, require that new development is designed to accommodate and to provide direct access to transit facilities. 7. Transportation Policy TR-4.1: Support the development of amenities and land use and development types and intensities that increase daily ridership on the VTA, BART, Caltrain, ACE and Amtrak California systems and provide positive fiscal, economic, and environmental benefits to the community. 8. Transportation Policy TR-8.12: As part of the entitlement process, consider opportunities to reduce the number of parking spaces through shared parking, TDM actions, parking pricing or other measures which can reduce parking demand. Consider the use of reserve landscaped open space or recreational areas that can be used on a short-term basis to provide parking or converted to formal parking in the future if necessary. Analysis: The subject project is fully capitalizing on the site s proximity to the transit hub of Diridon Station which is within 2,000 feet of the station, and the site s urban location within the Downtown and greater Diridon Area. The project is a pedestrian oriented development with a transportation management plan to promote the use of alternative modes of transportation. Both the Diridon Station Area Plan and the Downtown General Plan Policies emphasize building more dense and livable urban development in the Downtown. The proposal for zero parking embodies the goals and policies to transition from a car-centric approach towards development that fully utilizes the site for non-vehicle uses and provides a diverse array of housing. Further promoting a higher density in the Downtown encourages commercial/retail development in the Downtown and Diridon Area to provide amenities to existing and future residents and visitors. Per section B of the Municipal Code, new structures on parcels that are ten thousand square feet or less with up to thirty thousand square feet of building area do not need to provide parking. The subject parcel is 4,446 square feet which is less than 10,000 square feet. However the approximately 47,451 gross square feet of gross building area exceeds the maximum 30,000 square feet as set forth in Section B. Therefore, a rezoning to a DC(PD) Planned Development Zoning District is required and the proposed Planned Development Standard will allow zero-parking for development up to 50,000 square feet.

12 File Nos. PDC & PD Page 6 of 9 Considering that the project is proposing zero parking, it meets the General Plan policies to reduce the visual impact of on-site parking and is proposing the highest level of reduction in parking requirements. The project is located in the Downtown Growth Area and within the Diridon Station Area Plan Urban Village. The site is approximately 1,750 feet away from the Diridon Station, which is developing into one of the most connected transit hubs in California, with connections to the Santa Clara Valley Transportation Authority (VTA) lightrail, Caltrain, and eventual connection to Bay Area Rapid Transit (BART) and California High Speed rail. The subject project will also implement Transportation Management measure which includes up to two free VTA EcoPasses per unit, two free carshare memberships per unit, installation of 54 secured bike parking spaces, alternative transportation marketing materials to prospective tenants for the duration of the proposed zoning district. The project is geared towards residents who will not own cars and encourages the use of alternative means of transportation. Finally, the development furthers the vision of the Envision San José 2040 General Plan by developing a type of residential development that will accommodate the expected population growth in San José and providing an alternative form of housing that fully utilizes the finite amount of infill land available in the City. 9. Community Design Policy CD-6.1: Recognize Downtown as the most vibrant urban area of San José and maximize development potential and overall density within the Downtown. 10. Community Design Policy CD-7.9: Build new residential development within Urban Village areas at a minimum of four stories in height with the exception that a single row of 2-3 story development, such as townhouses, should be used when building new residential development immediately adjacent to single-family residential sites that have a Residential Neighborhood designation. 11. Housing Policy-4.3: Encourage the development of higher residential densities in complete, mixed-use, walkable and bikeable communities to reduce energy use and green house gas emissions. 12. Land Use Policy LU-2.1: Provide significant job and housing growth capacity within strategically identified Growth Areas in order to maximize use of existing or planned infrastructure (including fixed transit facilities), minimize the environmental impacts of new development, provide for more efficient delivery of City services, and foster the development of more vibrant, walkable urban settings. 13. Land Use Policy LU-10.4: Within identified growth areas, develop residential projects at densities sufficient to support neighborhood retail in walkable, main street type development. Analysis: The subject project is located in the Downtown and Diridon Station Area Plan Urban Village Plan, where it is the most suitable for high density residential development. Given the site s location and ideal location near transit options, the potential redevelopment is ideal for high-density development. As the site is not adjacent to single-family residential and is located at the corner of a City connector street, as the area changes the project will help frame the block and promote the redevelopment of the neighborhood. Further densification of the area, will encourage the development of mixed use and commercial uses to support the residential density. The pedestrian orientation of the development emphasizes the urban and walkable nature of vibrant and diverse downtown streets. 14. Community Design Policy CD-2.4: Incorporate public spaces (squares, plazas, etc.) into private developments to encourage social interaction, particularly where such spaces promote symbiotic relationships between businesses, residents, and visitors.

13 File Nos. PDC & PD Page 7 of 9 Analysis: The project is proposing to develop a publically accessible plaza at the corner of the development accessible of two public right-of-ways. The proposed plaza will facilitate the activation of the corner of the parcel and provide a natural traffic calming measure to reduce speed on the adjacent streets. Diridon Station Area Plan Urban Village (DSAP) Conformance The Diridon Station Area Plan (DSAP) was adopted by City Council in June of The DSAP is plan for the half-mile radius around Diridon Station (approximately 500 acres of land). The plan provides a framework for higher intensity/transit-oriented development in the Diridon Station area. The plan is separated into three primary zones; the Northern Zone (called the Innovation District) north of the Alameda and the SAP Center, the Central Zone (called Destination Diridon) immediately adjacent to the transit station, and the Southern Zone (called Diridon Neighborhoods) south of the station along West San Carlos Street. The subject property is within the Southern Zone of the plan boundaries. The Southern Zone supports residential and non-residential uses, with a particular emphasis on pedestrian connectivity to transit and bike access. The Southern Zone allows building height up to 110 feet and the Downtown Designation in the Plan permits what is allowed in the General Plan of 800 dwelling unit per acre (DU/AC) and a Floor Area Ratio (FAR) of The proposed ten-story development is tall, with 54 residential units and approximately square feet of commercial space for a total FAR of and 529 DU/AC meets the intent of the development intensity called for in the DSAP. DSAP plan states that the Southern Zone should provide public space and orient the building on the ground floor to activate and provide interesting pedestrian scale activity. The ground floor commercial is built to the setback line and provides a public plaza to provide seating and interesting public space. Planned Development Permits Findings The subject project meets the findings for the issuance of a Planned Development Permit as the project is: 1. Consistent with and furthers the policies of the General Plan; and 2. Conforms in all respects to the Planned Development zoning of the property; and 3. The interrelationship between the orientation, location, mass and scale of building volumes, and elevations of proposed buildings, structures and other uses on-site are appropriate, compatible and aesthetically harmonious; and 4. The environmental impacts of the project, including but not limited to noise, vibration, dust, drainage, erosion, storm water runoff, and odor, which even if insignificant for purposes of the California Environmental Quality Act (CEQA), will not have an unacceptable negative effect on adjacent property or properties. Analysis: As discussed in detail above, the proposed project is consistent with the policies of the General Plan. In addition, the project conforms to all respects to the new Planned Development Zoning District, as the Planned Development Rezoning and Planned Development Permit have been reviewed concurrently. The building is located in the boundary of DSAP and is developed to the appropriate scale for its location in the urban core and is sufficiently setback from the other surrounding uses. The Addendum to the Final Program EIR Diridon Station Area EIR (Resolution No ), the Final Program EIR for the Envision San José 2040 General Plan (Resolution No ) and the Envision San Jose 2040 General Plan Supplemental Environmental Impact Report (Resolution 77617) have

14 File Nos. PDC & PD Page 8 of 9 determined that the project will not have an unacceptable negative effect on the environmental including the adjacent property or properties. Downtown Design Guidelines Commercial: A project is a vertical mixed use project with ground floor retail with approximately 1,856 square feet. The ground floor retail will have 16 foot ceiling height and will the entrances off of Lorraine Avenue and Montgomery Street. The ground floor plan provides sufficient space for outdoor seating and public plaza space for ground for activation. Residential: There are six units per floor with at least 60% of the units will have private balcony for their own private open space. In addition, there will be 3,436 square feet of common open space in the form of a rooftop terrace. The project is utilizing a variety of materials to provide architectural elements to the building and the rounded corner provides shape and interest to the downtown skyline. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Addendum to the Diridon Station Area Final Environmental Impact Report (Resolution No ), the Envision San Jose 2040 General Plan Final Program Environmental Impact Report (Resolution No ) and Supplemental Environmental Impact Report (Resolution 77617), was prepared for the project under the provisions of the environmental review requirements the California Environmental Quality Act of 1970, as amended (CEQA), including State and local implementing regulations. The Addendum is available for review at The CEQA Guidelines Section states that when an EIR has been certified, no subsequent EIR shall be prepared for that project unless the lead agency determines that either (1) substantial changes are proposed to the project which will require major revisions to the previous EIR due to new or substantially more severe significant effects, (2) substantial changes have occurred with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIRs due to new or substantially more severe significant effects, or (3) new information of substantial importance that was not known and could not have been known previously with the exercise of reasonable diligence shows that the project will have one or more significant effect or substantially more severe effect than disclosed in the previous EIR, or a mitigation measure or alternative that is new or is now feasible, when previously found infeasible, would substantially reduce a significant effect and the project proponent declines to adopt it. An addendum to a previously certified EIR shall be prepared if some changes or additions are needed to the EIR but none of the conditions described in Section have occurred.

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16 RD:JVP:JMD 05/02/2016 RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN JOSE APPROVING A PLANNED DEVELOPMENT PERMIT, SUBJECT TO CONDITIONS, TO ALLOW CONSTRUCTION OF A TEN-STORY MIXED-USE BUILDING THAT INCLUDES APPROXIMATELY 1,856 SQUARE FEET OF GROUND FLOOR COMMERCIAL SPACE AND UP TO 54 RESIDENTIAL UNITS WITH NO ONSITE PARKING ON AN APPROXIMATELY GROSS ACRE SITE, LOCATED AT THE NORTHEAST CORNER OF THE INTERSECTION OF SOUTH MONTGOMERY STREET AND LORRAINE AVENUE (565 LORRAINE AVENUE) FILE NO. PD WHEREAS, pursuant to the provisions of Chapter of Title 20 of the San José Municipal Code, on October 27, 2014, the application from Montgomery 7 LLC (File No. PD15-042) was filed with the City of San José for a Planned Development Permit to allow the demolition of the single-family resident, and allow the construction of a tenstory mixed-use building that includes approximately 1,856 square feet of ground floor commercial space and up to 54 residential units with no on-site parking on an approximately gross acre site, on that certain real property situated in the DC(PD) Planned Development Zoning District and located on the northeast corner of the intersection of South Montgomery Street and Lorraine Avenue (565 Lorraine Avenue, San José, which real property is sometimes referred to herein as the subject property ); and WHEREAS, the subject property is all that real property more particularly described in Exhibit "A", entitled Legal Description, which is attached hereto and made a part hereof by this reference as if fully set forth herein; and 1 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

17 RD:JVP:JMD 05/02/2016 WHEREAS, pursuant to and in accordance with Chapter of Title 20 of the San José Municipal Code, the Planning Commission conducted a hearing on said application on May 11, 2016, notice of which was duly given; and WHEREAS, at said hearing, the Planning Commission gave all person full opportunity to be heard and to present evidence and testimony respecting said matter; and WHEREAS, at said hearing, this Planning Commission made a recommendation to the City Council respecting said matter based on evidence and testimony; and WHEREAS, pursuant to and in accordance with Chapter of Title 20 of the San José Municipal Code, this City Council conducted a hearing on said application notice of which was duly given; and WHEREAS, at said hearing, the City Council gave all person full opportunity to be heard and to present evidence and testimony respecting said matter; and WHEREAS, at said hearing this City Council received and considered the reports and recommendation of the City s Planning Commission and City s Director of Planning, Building and Code Enforcement; and WHEREAS, at said hearing this City Council received in evidence a development plan for the subject property entitled Montgomery 7 Proposed Residential Apartments and Retail, last revised March 22, 2016, said development plan is on file in the Department of Planning, Building and Code Enforcement and is available for inspection by anyone interested herein, and said development plan is incorporated herein by this reference, the same as if it were fully set forth herein; and 2 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

18 RD:JVP:JMD 05/02/2016 WHEREAS, said public hearing before the City Council was conducted in all respects as required by the San José Municipal Code and the rules of this City Council. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE AS THAT: After considering all of the evidence presented at the Public Hearing, the City Council finds that the following are the relevant facts regarding this proposed project: 1. The subject site has a land use designation of Downtown on the Envision San José 2040 General Plan Land Use/Transportation Diagram. 2. The project site is located in the DC(PD) Planned Development Zoning District (File No. PDC15-042). 3. The Montgomery 7 Planned Development Rezoning (File No. PDC (Ordinance No. ) was adopted on, 2016 authorizing up to 54 residential units and approximately 1,856 square feet of ground floor commercial space with no onsite parking. 4. The approximately gross acre project site currently has a single-family residence. 5. No ordinance size trees shall be removed as part of this permit. 6. The site is bounded by a vacant lot to the east, an office building across Park Avenue to the north, San José Fire Department Bureau of Field Operations across South Montgomery to the west, and retail commercial uses across Lorraine Avenue to the south. 7. This Planned Development Permit would allow development of up to 54 residential units and approximately 1,856 square feet of ground floor commercial space. 8. The Downtown General Plan Land Use/Transportation Diagram designation typically allows a mixed of commercial and residential development with a floor-area ratio (FAR) of 30 to 800 dwelling units per acre (DU/AC). 9. The project proposes a FAR of and 529 DU/AC. 10. No parking is proposed for the subject use. 11. Stormwater Peak Flow Control Measures: The project is located in a non- Hydromodification Management area and is not required to comply with the City s Post-Construction Hydromodification Management Policy (Council Policy 8-14). 3 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

19 RD:JVP:JMD 05/02/ Flood: Zone D: The project site is not within a designated Federal Emergency Management Agency (FEMA) 100-year floodplain. Flood Zone D is an unstudied area where flood hazards are undetermined, but flooding is possible. There are no City floodplain requirements for Zone D. 13. Pursuant to Section of the CEQA Guidelines, the City of San José has prepared an Addendum to the Final Program Environmental Impact Report (EIR) Diridon Station Area Plan (Resolution No ), the Final Program EIR for the Envision San José 2040 General Plan (Resolution No ) and the Envision San José 2040 General Plan Supplemental Environmental Impact Report (Resolution 77617), for which findings were adopted by City Council by separate resolution for this Project. 14. On May 11, 2016 the Planning Commission conducted a public hearing on the Planned Development Permit and the accompanying Planned Development Zoning and recommended. PD PERMIT FINDINGS The City Council concludes and finds, based on analysis of the above facts with respect to the Planned Development Permit findings, as set forth in San José Municipal Code Section , that: 1. The Planned Development Permit, as issued, furthers the policies of the General Plan, in that: a. As discussed in detail above and in the staff report, the project is consistent with the site s General Plan Land Use/Transportation Diagram designation of Downtown in that residential uses and density are consistent with this designation. i. Community Design Policy CD-1.17: Minimize the footprint and visibility of parking areas. Where parking areas are necessary, provide aesthetically pleasing and visually interesting parking garages with clearly identified pedestrian entrances and walkways. Encourage designs that encapsulate parking facilities behind active building space or screen parked vehicles from view from the public realm. Ensure that garage lighting does not impact adjacent uses, and to the extent feasible, avoid impacts of headlights on adjacent land uses. ii. Community Design Policy CD-3.5: Encourage shared and alternative parking arrangements and allow parking reductions when warranted by parking demand. 4 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

20 RD:JVP:JMD 05/02/2016 iii. Land Use Policy LU-3.5: Balance the need for parking to support a thriving Downtown with the need to minimize the impacts of parking upon a vibrant pedestrian and transit oriented urban environment. Provide for the needs of bicyclists and pedestrians, including adequate bicycle parking areas and design measures to promote bicyclist and pedestrian safety. iv. Land Use Policy LU-10-3: Develop residentially- and mixed-use-designated lands adjacent to major transit facilities at high densities to reduce motor vehicle travel by encouraging the use of public transit. v. Transportation Policy TR-1.1: Accommodate and encourage use of nonautomobile transportation modes to achieve San José s mobility goals and reduce vehicle trip generation and vehicle miles traveled (VMT). vi. Transportation Policy TR-3.3: As part of the development review process, require that new development along existing and planned transit facilities consist of land use and development types and intensities that contribute toward transit ridership. In addition, require that new development is designed to accommodate and to provide direct access to transit facilities. vii. Transportation Policy TR-4.1: Support the development of amenities and land use and development types and intensities that increase daily ridership on the VTA, BART, Caltrain, ACE and Amtrak California systems and provide positive fiscal, economic, and environmental benefits to the community. viii. Transportation Policy TR-8.12: As part of the entitlement process, consider opportunities to reduce the number of parking spaces through shared parking, TDM actions, parking pricing or other measures which can reduce parking demand. Consider the use of reserve landscaped open space or recreational areas that can be used on a short-term basis to provide parking or converted to formal parking in the future if necessary. Analysis: The subject project is fully capitalizing on the site s proximity to the transit hub of Diridon Station which is within 2,000 feet of the station, and the site s urban location within the Downtown and greater Diridon Area. The project is a pedestrian oriented development with a transportation management plan to promote the use of alternative modes of transportation. Both the Diridon Station Area Plan and the Downtown General Plan Policies emphasize building more dense and livable urban development in the Downtown. The proposal for zero parking embodies the goals and policies to transition from a car-centric approach towards development that fully utilizes the site for non-vehicle uses and provides a diverse array of housing. Further promoting a higher density in the Downtown 5 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

21 RD:JVP:JMD 05/02/2016 encourages commercial/retail development in the Downtown and Diridon Area to provide amenities to existing and future residents and visitors. Per section B of the Municipal Code, new structures on parcels that are ten thousand square feet or less with up to thirty thousand square feet of building area do not need to provide parking. The subject parcel is 4,446 square feet which is less than 10,000 square feet. However the approximately 47,451 gross square feet of gross building area exceeds the maximum 30,000 square feet as set forth in Section B. Therefore, a rezoning to a DC(PD) Planned Development Zoning District is required and the proposed Planned Development Standard will allow zero-parking for development up to 50,000 square feet. Considering that the project is proposing zero parking, it meets the General Plan policies to reduce the visual impact of on-site parking and is proposing the highest level of reduction in parking requirements. The project is located in the Downtown Growth Area and within the Diridon Station Area Plan Urban Village. The site is approximately 1,750 feet away from the Diridon Station, which is developing into one of the most connected transit hubs in California, with connections to the Santa Clara Valley Transportation Authority (VTA) lightrail, Caltrain, and eventual connection to Bay Area Rapid Transit (BART) and California High Speed rail. The subject project will also implement Transportation Management measure which includes up to two free VTA EcoPasses per unit, two free carshare memberships per unit, installation of 54 secured bike parking spaces, alternative transportation marketing materials to prospective tenants for the duration of the proposed zoning district. The project is geared towards residents who will not own cars and encourages the use of alternative means of transportation. Finally, the development furthers the vision of the Envision San José 2040 General Plan by developing a type of residential development that will accommodate the expected population growth in San José and providing an alternative form of housing that fully utilizes the finite amount of infill land available in the City. ix. Community Design Policy CD-6.1: Recognize Downtown as the most vibrant urban area of San José and maximize development potential and overall density within the Downtown. x. Community Design Policy CD-7.9: Build new residential development within Urban Village areas at a minimum of four stories in height with the exception that a single row of 2-3 story development, such as townhouses, should be used when building new residential development immediately adjacent to single-family residential sites that have a Residential Neighborhood designation. 6 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

22 RD:JVP:JMD 05/02/2016 xi. Housing Policy-4.3: Encourage the development of higher residential densities in complete, mixed-use, walkable and bikeable communities to reduce energy use and green house gas emissions. xii. Land Use Policy LU-2.1: Provide significant job and housing growth capacity within strategically identified Growth Areas in order to maximize use of existing or planned infrastructure (including fixed transit facilities), minimize the environmental impacts of new development, provide for more efficient delivery of City services, and foster the development of more vibrant, walkable urban settings. xiii. Land Use Policy LU-10.4: Within identified growth areas, develop residential projects at densities sufficient to support neighborhood retail in walkable, main street type development. Analysis: The subject project is located in the Downtown and Diridon Station Area Plan Urban Village Plan, where it is the most suitable for high density residential development. Given the site s location and ideal location near transit options, the potential redevelopment is ideal for high-density development. As the site is not adjacent to single-family residential and is located at the corner of a City connector street, as the area changes the project will help frame the block and promote the redevelopment of the neighborhood. Further densification of the area, will encourage the development of mixed use and commercial uses to support the residential density. The pedestrian orientation of the development emphasizes the urban and walkable nature of vibrant and diverse downtown streets. xiv. Community Design Policy CD-2.4: Incorporate public spaces (squares, plazas, etc.) into private developments to encourage social interaction, particularly where such spaces promote symbiotic relationships between businesses, residents, and visitors. Analysis: The project is proposing to develop a publically accessible plaza at the corner of the development accessible of two public right-of-ways. The proposed plaza will facilitate the activation of the corner of the parcel and provide a natural traffic calming measure to reduce speed on the adjacent streets. 2. The Planned Development Permit, as issued, conforms in all respects to the Planned Development Zoning of the property in that: a. As discussed in detail above and in the staff report, the proposed project conforms to the approved General Development Plan, in that the General Development Plan allows the 54 residential uses and ground floor commercial uses with the issuance of a Planned Development Permit, and the proposal conforms to the development 7 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

23 RD:JVP:JMD 05/02/2016 standards in regards to setback, parking requirement and height. 3. The interrelationship between the orientation, location, mass and scale of building volumes, and elevations of proposed buildings, structures and other uses on-site are appropriate, compatible and aesthetically harmonious, in that: a. The proposed project is at the corner of an intersection with three street frontages; and b. The site is in an urban setting near public transit; and c. There are no adjacent single-family residential units; and d. Is directly across the street from a Fire Training Station and a commercial center. 4. Pursuant to Section of the CEQA Guidelines, the City of San Jose has prepared an Addendum to the Diridon Station Area Plan Final Environmental Impact Report (DSAP FEIR) and the Envision San Jose 2040 General Plan Environmental Impact Report, as supplemented (Envision 2040 FEIR) because minor changes made to the project, as described below, do not raise important new issues about the significant impacts on the environment. a. The environmental impacts of the project, including but not limited to noise, vibration, dust, drainage, erosion, stormwater runoff, and odor which, even if insignificant for purposes of the California Environmental Quality Act (CEQA), will not have an unacceptable negative affect on adjacent property or properties. b. The environmental impacts of this project were addressed by the Diridon Station Area Plan Final Environmental Impact Report, adopted by City Council Resolution No on June 17, 2014; the Envision San Jose 2040 General Plan Environmental Impact Report, adopted by City Council Resolution No on November 1, 2011; and the Envision San Jose 2040 General Plan Supplemental Environmental Impact Report, adopted by City Council Resolution on December 15, The proposed project is eligible for an addendum pursuant to CEQA Guidelines 15164, which states that A lead agency or responsible agency shall prepare an addendum to a previously certified EIR if some changes or additions are necessary but none of the conditions described in CEQA Guidelines calling for preparation of a subsequent EIR have occurred. Circumstances which would warrant a subsequent EIR include substantial changes in the project or new information of substantial importance which would require major revisions of the previous EIR due to the occurrence of new significant impacts and/or a substantial increase in the severity of previously identified significant effects. c. The project is consistent with the development capacity evaluated in both the DSAP FEIR and the Envision 2040 FEIR, as supplemented. In 2014, the City adopted the Diridon Station Area Plan (DSAP) and certified the DSAP FEIR. The DSAP refined the development capacities evaluated in the 2005 Downtown 8 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

24 RD:JVP:JMD 05/02/2016 Strategy 2000 EIR within the DSAP Plan Area by establishing urban design guidelines and specifying maximum development capacities in three Plan subareas: the Northern Zone (Innovation District), the Central Zone (Destination Diridon), and the Southern Zone (Diridon Neighborhoods). The project site is located within the Southern Zone, which has a maximum development capacity of 805,000 square feet of office/research & development/light industrial uses, 203,000 square feet of retail and restaurant uses, up to 2,365 residential units, and 650 hotel rooms. d. The project proposes up to 54 residential units and about 1,856 square feet of ground floor commercial space (which could be used for future retail, restaurant, or office uses). This development capacity is within the development capacities for the Southern Zone analyzed in the DSAP FEIR. e. The project is also consistent with the development capacity evaluated in the 2011 Envision 2040 EIR for the downtown area. In December 2015, the City Council re-adopted the City s Greenhouse Gas Reduction Strategy and certified the Envision San Jose 2040 General Plan Supplemental EIR (SEIR). The SEIR analyzed the City s greenhouse gas emissions under the Envision San Jose 2040 General Plan. The project is consistent with the City s Greenhouse Gas Reduction Strategy as it is located within an identified growth area (Downtown), is consistent with the General Plan Land Use/Transportation Diagram designation of Downtown, and supports General Plan Policies to encourage public transit use, biking, and walking. f. The attached Initial Study evaluates the project-specific environmental impacts that were not addressed in the three previously certified EIRs. The Initial Study concluded that the proposed project would not result in any new impacts not previously disclosed in the DSAP FEIR and the Envision 2040 FEIR, as supplemented. The project will not result in a substantial increase in the magnitude of any significant environmental impact previously identified in these EIRs. Therefore, a supplemental or subsequent EIR is not required and an addendum to the DSAP FEIR and Envision 2040 FEIR, as supplemented, has been prepared for the proposed project. The City Council concludes and finds, based on the analysis of the above facts and considerations, that: a. The proposed project conforms in all respects to the provisions of Title 20 of the San José Municipal Code. b. The proposed project is in conformance with the California Environmental Quality Act of 1970, as amended. 9 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

25 RD:JVP:JMD 05/02/2016 In accordance with the findings set forth above, a Planned Development Permit to use the subject property for said purpose specified above and subject to each and all of the conditions hereinafter set forth is hereby approved. This City Council expressly declares that it would not have granted this Planned Development permit and determination except upon and subject to each and all of said conditions, each and all of which conditions shall run with the land and be binding upon the owner and all subsequent owners of the subject property, and all persons who use the subject property for the use permitted hereby. CONDITIONS 1. Acceptance of Permit. Per Section (B) of Title 20 of the San José Municipal Code, should the permittee fail to file a timely and valid appeal of this Planned Development Permit within the applicable appeal period, such inaction by the permittee shall be deemed to constitute all of the following on behalf of the permittee: a. Acceptance of the Planned Development Permit by the permittee; and b. Agreement by the permittee to be bound by, to comply with, and to do all things required of or by the permittee pursuant to all of the terms, provisions, and conditions of this Permit or other approval and the provisions of Title 20 of the San José Municipal Code applicable to such Permit. 2. Permit Expiration. This Planned Development Permit shall automatically expire four years from and after the date of issuance hereof by the City Council, if within such time period, the proposed use of this site or construction has not commenced, pursuant to and in accordance with the provision of this Planned Development Permit. The date of issuance is the date this Planned Development Permit is approved by the City Council. However, the Director of Planning may approve a Permit Adjustment/Amendment to extend the validity of this Permit in accordance with Title 20 of the San José Municipal Code. The Permit Adjustment/Amendment must be approved prior to the expiration of this Permit. 3. Building Permit/Certificate of Occupancy. Procurement of a Building Permit and/or Certificate of Occupancy from the Building Official for the structures described or contemplated under this Planned Development Permit shall be deemed acceptance of all conditions specified in this permit and the permittee's agreement to fully comply with all of said conditions. No change in the character of occupancy or change to a different group of occupancies as described by the Building Code shall be made without first obtaining a Certificate of Occupancy from the Building Official, as required under San José Municipal Code Section , and any such change in occupancy must comply with all other applicable local and state laws. 10 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

26 RD:JVP:JMD 05/02/ Sewage Treatment Demand. Chapter of Title 15 of the San José Municipal Code requires that all land development approvals and applications for such approvals in the City of San José shall provide notice to the permittee for, or recipient of, such approval that no vested right to a Building Permit shall accrue as the result of the granting of such approval when and if the City Manager makes a determination that the cumulative sewage treatment demand of the San José-Santa Clara Regional Wastewater Facility represented by approved land uses in the area served by said Plant will cause the total sewage treatment demand to meet or exceed the capacity of San José-Santa Clara Regional Wastewater Facility to treat such sewage adequately and within the discharge standards imposed on the City by the State of California Regional Water Quality Control Board for the San Francisco Bay Region. Substantive conditions designed to decrease sanitary sewage associated with any land use approval may be imposed by the approval authority. 5. Conformance to Plans. Development of the site shall conform to approved Planned Development plans entitled, Montgomery 7 Proposed Residential Apartments and Retail, last revised March 22, 2016 on file with the Department of Planning, Building and Code Enforcement, as may be amended and approved by the Director of Planning, Building, and Code Enforcement, and to the San José Building Code (San José Municipal Code, Title 24). The plans are referred to herein as the Approved Plan Set or approved plans. 6. Planned Development District Effectuated. Once this Planned Development Permit is accepted, the use of territory not covered by the Permit shall only be land uses consistent with the Planned Development Zoning District and only upon issuance of a Planned Development Permit for those uses. 7. Use Authorization. This Planned Development Permit allows the construction of a building with 54 residential units and approximately 1,856 ground floor commercial space. 8. Nuisance. This use shall be operated in a manner which does not create a public or private nuisance. Any such nuisance must be abated immediately upon notice by the City. 9. Parkland Dedication Ordinance. This development is subject to the requirements of either the requirements of the City s Park Impact Ordinance (Chapter of Title 14 of the San José Municipal Code) or the Parkland Dedication Ordinance (Chapter of Title 19 of the San José Municipal Code,) for the dedication of land and/or payment of fees in-lieu of dedication of land for public park and/or recreational purposes under the formula contained within the parkland dedication ordinance and the associated Fees and Credit Resolutions. 10. Affordable Housing. This project may be subject to the City s Inclusionary Housing Ordinance, Policy, or Affordable Housing Impact Fee (AHIF), as may be amended, or other applicable ordinances, policies, or regulations. If the development is subject to 11 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

27 RD:JVP:JMD 05/02/2016 the referenced Ordinance, Policy or AHIF, as may be amended, or other applicable ordinances, polices or regulations, the Permittee shall, prior to the issuance of building permits: a. Submit an Affordable Housing Compliance Plan Application to the Housing Department, subject to Housing Department review and approval; and b. Execute and record against the Project an Affordable Housing Agreement, subject to Housing Department review and approval, prior to the approval of any final or parcel map, or issuance of any building permits, whichever occurs first for the Project; and c. No Temporary Certificate of Occupancy, or Certificate of Occupancy, or Notice of Completion for any units shall be issued until all requirements of the Inclusionary Housing Ordinance, Inclusionary Housing Policy and/or the AHIF Resolution, or other applicable ordinances or policies, have been completely satisfied to the satisfaction of the Housing Department. 11. Conformance to Mitigation Monitoring and Reporting Program. This project shall conform to all applicable requirements of the Mitigation Monitoring and Reporting Program (MMRP) approved for this development by City Council Resolution No.. The following mitigation or avoidance measures are organized by impact category. a. Migratory Birds. Tree removal and construction shall be scheduled to avoid the nesting season to the extent feasible. The nesting season for most birds, including most raptors in the San Francisco Bay area, extends from February 1st through August 31st. i. If this is not possible, a qualified ornithologist shall complete pre-construction surveys to identify active raptor nests that may be disturbed during project implementation. This survey shall be completed no more than 14 days prior to the initiation of demolition/construction activities during the early part of the breeding season (February 1 through April 30) and no more than 30 days prior to the initiation of these activities during the late part of the breeding season (May 1 through August 31). During this survey, the ornithologist shall inspect all trees and other possible nesting habitats in and immediately adjacent to the construction areas for nests. If an active nest is found in an area that will be disturbed by construction, the ornithologist shall designate a construction-free buffer zone (typically 250 feet) to be established around the nest, in consultation with California Department of Fish and Wildlife (CDFW). ii. The permittee shall submit a report indicating the results of the survey and any designated buffer zones to the satisfaction of the Director of Planning, prior to the issuance of any grading or building permit. 12 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

28 RD:JVP:JMD 05/02/2016 iii. If demolition or construction activities are proposed to commence during the non-breeding season between August 31 and February 1, no surveys shall be required. b. Cultural Resources i. If buried cultural deposits are encountered during project activities, all work within 50 feet of the find shall be redirected. A qualified archaeologist shall (1) evaluate the find to determine if it meets the CEQA definition of a historical or archaeological resource; and (2) provide project-specific recommendations regarding the disposition of the find. The results of any archaeological investigation shall be submitted to the Northwest Information Center (NWIC). ii. If the find does not meet the definition of a historical or archaeological resource, then no further study or protection is necessary prior to project implementation. If the find does meet the definition of a historical or archaeological resource, then it shall be avoided by project activities through redesign, assignment of conservation easements, or site capping. iii. If avoidance is not feasible, a professional archaeologist shall examine the find and make appropriate recommendations regarding the significance of the find and the appropriate mitigation. Recommendations could include collection, recordation, and analysis of any significant cultural materials. All recommendations and mitigation measures shall be reviewed, approved, and enforced by the Director of Planning Building and Code Enforcement prior to resuming any ground disturbance activities. 12. Public Works Clearance for Building Permit(s) or Map Approval: Prior to the approval of the Tract or Parcel Map by the Director of Public Works, or the issuance of Building permits, whichever occurs first, the permittee will be required to have satisfied all of the following Public Works conditions. The permittee is strongly advised to apply for any necessary Public Works permits prior to applying for Building permits. a. Construction Agreement: The public improvements conditioned as part of this permit require the execution of a Construction Agreement that guarantees the completion of the public improvements to the satisfaction of the Director of Public Works. This agreement includes privately engineered plans, bonds, insurance, a completion deposit, and engineering and inspection fees. b. Transportation: 13 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

29 RD:JVP:JMD 05/02/2016 i. This project is located in the expanded Downtown Core and is covered under the San José Downtown Strategy 2000 EIR, including the traffic analysis; therefore, no further traffic analysis is required. The subject project will be in conformance with the City of San José Transportation Level of Service Policy (Council Policy 5-3) and a determination for a negative declaration can be made with respect to traffic impacts. ii. A Traffic Operational Analysis for this project was approved by the City on September 5, iii. The project is not in a Residential Permit Parking (RPP) Zone. The RPP program is no longer funded to accept new addresses or to modify existing zones; therefore the project will not be granted RPP parking permits. c. Grading/Geology: i. A grading permit is required prior to the issuance of a Public Works Clearance. The construction operation shall control the discharge of pollutants (sediments) to the storm drain system from the site. An erosion control plan may be required with the grading application. ii. All on-site storm drainage conveyance facilities and earth retaining structures 4 feet in height or greater (top of wall to bottom of footing) or is being surcharged (slope of 3:1 or greater abutting the wall) shall be reviewed and approved under Public Works grading and drainage permit prior to the issuance of Public Works Clearance. The drainage plan should include all underground pipes, building drains, area drains and inlets. The project shall provide storm drainage calculations that adhere to the 2010 California Plumbing Code or submit a stamped and signed alternate engineered design for Public Works discretionary approval and should be designed to convey a 10 year storm event. iii. The project site is within the State of California Seismic Hazard Zone. A geotechnical investigation report addressing the potential hazard of liquefaction must be submitted to, reviewed and approved by the City Geologist prior to issuance of a grading permit or Public Works Clearance. The investigation shall be consistent with the guidelines published by the State of California (CGS Special Publication 117A) and the Southern California Earthquake Center (SCEC, 1999). A recommended depth of 50 feet shall be explored and evaluated in the investigation. d. Stormwater Runoff Pollution Control Measures: This project must comply with the City s Post-Construction Urban Runoff Management Policy (Policy 6-29) which requires implementation of Best Management Practices (BMPs) which includes site design measures and source controls to minimize stormwater pollutant discharges. 14 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

30 RD:JVP:JMD 05/02/2016 e. Sewage Fees: In accordance with City Ordinance, all storm sewer area fees, sanitary sewer connection fees, and sewage treatment plant connection fees, less previous credits, are due and payable. f. Parks: This residential project is subject to the requirements of the City s Parkland Dedication Ordinance (Chapter of Title 14 of the San José Municipal Code) for the payment of fees in-lieu of dedication of land for a public park and/or recreational purposes under the formula contained within in the Subject Chapters and the Associated Fees and Credit Resolutions. g. Street Improvements: i. Square-up of the northeast corner of Lorraine Avenue and Montgomery Street. This will include the removal of the median and street light, and include the installation of an American with Disabilities Act (ADA) compliant R-11 Handicap Ramp with cross-walk. ii. Construct a 12.0-foot attached sidewalk with tree wells along the entire Montgomery Street frontage. A street easement dedication of approximately 2 feet will be required. iii. Construct a 10-foot wide sidewalk section (4.0-foot park strip and 6.0-foot detached sidewalk) along the Lorraine Avenue frontage. iv. Remove and replace the handicap ramp at the corner of Lorraine Avenue and Montgomery Street to current City Standard Detail R-11. v. Remove and replace curb and gutter along project frontages. vi. Dedication and improvement of the public streets to the satisfaction of the Director of Public Works. vii. Repair, overlay, or reconstruction of asphalt pavement may be required. The existing pavement will be evaluated with the street improvement plans and any necessary pavement restoration will be included as part of the final street improvement plans. h. Street Vacation: The project is proposing to vacate the excess right-of-way created by squaring up the corner of Lorraine Avenue and Montgomery Street. The street vacation process requires further discretionary approval by the City Council and the project will be subject to this process prior to Public Works Clearance. A preliminary title report must be submitted prior to any decisions regarding the possible vacation of this street. If the City owns the underlying fee and the permittee no longer wishes to pursue the vacation, the permittee shall be required to submit a Planning Permit Adjustment in order to eliminate the proposed courtyard paving as well as other building elements (i.e. planter boxes, roof overhangs, etc.) from the City right-of-way. This adjustment would be required prior to Public Works Clearance. 15 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

31 RD:JVP:JMD 05/02/2016 i. Revocable Encroachment Permit (Street/Sidewalk Closures): At the Implementation stage, Permittee shall apply for a Revocable Encroachment Permit for any proposed sidewalk and lane closures to support the onsite construction activities. i. The following shall be included with the Revocable Permit application, but are not limited to: 1) Letter of Intent: The permittee shall provide a detailed description of the reasons for the sidewalk/lane closures and why they are absolutely necessary (man lifts, baker tanks, staging area, concrete pumping activities, etc.) and reasons why covered pedestrian walkways will not be provided (e.g., swinging loads over sidewalk not safe for pedestrians). 2) Multi-Phased Site Specific Sketches: The permittee shall show in sketches the phased closures during the course of construction with a timeframe estimate of when each phase would be implemented. These sketches shall include the type and location of the work to be accomplished within the right-of-way, and show in detail the vehicular and/or pedestrian diversion route and the appropriate safety equipment used for such routes, such as barricades, cones, arrow boards, signage, etc. ii. Permittee shall minimize the potential impact to vehicular and pedestrian traffic by: 1) Implementing the closures at the time the onsite activities dictate the need for the closure. 2) Minimizing the closure timeframes to accomplish the onsite tasks and implement the next phase of the closure as outlined in condition i.2., above. iii. If proposed lane and parking closures are a part of the Revocable Permit Application, permittee shall submit Downtown Lane Closure and Tow Away Permit Applications to DOT. These applications may be obtained at: Permittee shall contact DOT at (408) for more information concerning the requirements of these applications. j. Revocable Encroachment Permit (Awnings): At the Implementation stage, Permittee shall apply for a Revocable Encroachment Permit for any awnings that encroach into the Public right-of-way. These awnings must be temporary, removable and non-structural and must conform to City of San José Municipal Code and This will also include appropriate insurance to be maintained for the life of the awnings as determined by the City of San José Risk Manager. 16 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

32 RD:JVP:JMD 05/02/2016 k. Strong Neighborhoods Initiative (SNI): This project is located within the Delmas Park SNI area. Public improvements shall conform to the Certified EIR and Delmas Park Neighborhood Improvement Plan. l. Sanitary: The Permittee is required to submit plans and profiles of the private sewer mains with lateral locations to the Director of Public Works for final review and comment prior to construction. m. Greater Downtown Area Master Plans: This project is located within the Greater Downtown area. Public improvements shall conform to the Council approved San José Downtown Streetscape and Street and Pedestrian Lighting Master Plans. n. Electrical: Existing electroliers along the project frontage shall be evaluated at the public improvement stage and any street lighting requirements shall be included on the public improvement plans. o. Street Trees: The locations of the street trees shall be determined at the street improvement stage. Contact the City Arborist at (408) for the designated street tree. Install street trees within public right-of-way along entire project street frontage per City standards; refer to the current Guidelines for Planning, Design, and Construction of City Streetscape Projects. Street trees shall be installed in a park strip along Lorraine Avenue and in cut-outs at the back of curb along Montgomery Street. Obtain a DOT street tree planting permit for any proposed street tree plantings. Street trees shown on this permit are conceptual only. 13. Building Clearance for Issuing Permits. Prior to the issuance of a Building Permit, the following requirements must be met to the satisfaction of the Chief Building Official: a. Construction Plans. This permit file number, PD15-042, shall be printed on all construction plans submitted to the Building Division. b. Emergency Address Card. The project permittee shall file an Emergency Address Card, Form , with the City of San José Police Department. c. Construction Conformance. A project construction conformance review by the Planning Division is required. Planning Division review for project conformance will begin with the initial plan check submittal to the Building Division. Prior to any building permit issuance, building permit plans shall conform to the approved Planning development permits and applicable conditions. 14. Demolition. This Permit allows the demolition of structures as noted on the approved plans. 15. Construction and Demolition Hours. Construction, demolition, and grading activities shall be limited to the hours of 7:00 a.m. to 7:00 p.m. Monday through Friday. This includes the staging of equipment and construction personnel. The 17 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

33 RD:JVP:JMD 05/02/2016 construction hours shall be printed on all plans for the project used to construct the project. Interior construction activities that do not generate any audible noise impacts at residential properties are allowed on Saturdays between 9:00 a.m. and 5:00 p.m. 16. FAA Clearance. Prior to the submittal of a building permit application, the permittee shall obtain from the Federal Aviation Administration (FAA) a Determination of No Hazard for the highest point of the building (top of elevator overrun). The permittee shall initiate this federal regulatory review via filing of FAA Form (Notice of Proposed Construction or Alteration), the data for which should be prepared by a licensed civil engineer or surveyor using NAD83 latitude/longitude coordinates out to hundredths of seconds and NAVD88 elevations rounded off to next highest foot. 17. FAA Clearance Permit Adjustment. Prior to the submittal of a building permit application, the permittee shall obtain a Permit Adjustment to incorporate all FAA conditions identified in the certificate of no-hazard determination (e.g., obstruction lights or construction-related notifications) into the Planned Development Permit conditions of approval. 18. Street Cleaning and Dust Control. During construction, permittee shall damp sweep the public and private streets within and adjoining the project site each working day sufficient to remove all visible debris and soil. On-site areas visible to the public from the public right-of-way shall be cleaned of debris, rubbish, and trash at least once a week. While the project is under construction, permittee shall implement effective dust control measures to prevent dust and other airborne matter from leaving the site. 19. Recycling. Scrap construction and demolition material should be recycled. Integrated Waste Management staff can provide assistance on how to recycle construction and demolition debris from the project, including information on available haulers and processors. 20. Lighting. Lighting shall conform to the Zoning Code and City Council Policy 4-3 Outdoor Lighting on Private Developments. 21. Permit Adjustment Lighting. A Permit Adjustment to allow for exterior lighting shall be approved prior to the submittal of the application for any building permits. 22. Permit Adjustment Mural. The permittee will be required to put a mural and/or additional design element on the southwest elevation (rear) of the building and a Permit Adjustment will be required for a mural and/or additional design element. 23. Bike Parking. Each unit will be provided a permanent bike parking within or near each unit. 24. Mechanical Equipment. The location of mechanical equipment (AC Units) shall be located as shown on the approved plans and shall be screened from view. 25. Sign Approval. No signage is approved with this Planned Development Permit. All proposed signage is subject to the approval of a Sign Permit Adjustment. 18 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

34 RD:JVP:JMD 05/02/ Colors and Materials. All building colors and materials shall be those specified on the Approved Plan Set. 27. Conformance with Municipal Code. No part of this approval shall be construed to permit a violation of any part of the San José Municipal Code. 28. Green Building. The project must receive a minimum green building certification of LEED Certified. The permittee shall pay a Green Building Refundable Deposit at the building permit stage. The request for refund of the Green Building Deposit together with green building certification evidence demonstrating the achievement of the green building standards indicated above shall be submitted within a year after the building permit expires or becomes final, unless a request for an extension is submitted to the Director of Planning, Building, and Code Enforcement in accordance with Section D of the Municipal Code. In the event that building permits are issued for individual units and not a more than one model unit, the permittee will need to submit a green building checklist prior to the issuance of a building permit. 29. Compliance with Local and State Laws. The subject use shall be conducted in full compliance with all local and state laws. No part of this approval shall be construed to permit a violation of any part of the San José Municipal Code. The Permit shall be subject to revocation if the subject use is conducted in such a manner as to cause a nuisance, as defined above. 30. Discretionary Review. The Director of Planning, Building and Code Enforcement maintains the right of discretionary review of requests to alter or amend structures, conditions, or restrictions of this Planned Development Permit incorporated by reference in this Permit in accordance with Chapter of Title 20 of the San José Municipal Code. 31. Refuse. All trash areas shall be effectively screened from view and covered and maintained in an orderly state to prevent water from entering into the garbage container. Trash areas shall be maintained in a manner to discourage illegal dumping. 32. Anti-Graffiti. The permittee shall remove all graffiti from buildings and wall surfaces within 48 hours of defacement. 33. Anti-Litter. The site and surrounding area shall be maintained free of litter, refuse, and debris. Cleaning shall include keeping all publicly used areas free of litter, trash, cigarette butts and garbage. 34. Outdoor Storage. No outdoor storage is allowed or permitted unless designated on the Approved Plan Set. 35. Storm Water Stenciling. All drain inlets shall be labeled No Dumping-Flows to Bay. Please contact the City of San José, Department of Public Works, at (408) to obtain free stencils. 19 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

35 RD:JVP:JMD 05/02/ Landscaping. Planting and irrigation are to be provided as indicated on the approved plans. Landscaped areas shall be maintained and watered and all dead plant material shall be removed and replaced. Permanent irrigation shall be installed in accordance with Part 4 of Chapter of Title 15 of the San José Municipal Code, Water Efficient Landscape Standards for New and Rehabilitated Landscaping and the City of San José Landscape and Irrigation Guidelines. 37. Irrigation Standards. The permittee shall install an adequately sized irrigation distribution system with automatic controllers in all areas to be landscaped that conforms to the Zonal Irrigation Plan in the Approved Plan Set and is consistent with the City of San José Landscape and Irrigation Guidelines. The design of the system shall be approved and stamped by a California Registered Landscape Architect prior to Certificate of Occupancy. 38. Certification. Pursuant to San José Municipal Code, Section , certificates of substantial completion for landscape and irrigation installation shall be completed by licensed or certified professionals and provided to the Director of Planning, Building and Code Enforcement prior to approval of the final inspection of the project. 39. Fire Flow and Hydrants. Required fire flow and fire hydrants for the site shall be provided to the satisfaction of the Fire Chief. 40. Visible Street Numbers. Street numbers shall be visible day and night from the nearest street, either by means of illumination or by use of reflective materials. 41. Revocation, Suspension, Modification. This Planned Development Permit may be revoked, suspended or modified by the Planning Director, or by the Planning Commission on appeal, at any time regardless of who is the owner of the subject property or who has the right to possession thereof or who is using the same at such time, whenever, after a noticed hearing in accordance with Part 2, Chapter , Title 20 of the San José Municipal Code it finds: a. A violation of any conditions of the Planned Development Permit was not abated, corrected or rectified within the time specified on the notice of violation; or b. A violation of any City ordinance or State law was not abated, corrected or rectified within the time specified on the notice of violation; or c. The use as presently conducted creates a nuisance. In accordance with the findings set forth above, a Planned Development Permit to use the subject property for said purpose specified above is hereby approved. EFFECTIVE DATE The effective date of this Permit shall be the effective date of the Planned Development 20 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

36 RD:JVP:JMD 05/02/2016 Zoning Ordinance for File No. PDC adopted on, 2016 (the Planned Development Zoning Ordinance ) and shall be no earlier than the effective date of said Planned Development Zoning Ordinance. ADOPTED this day of 2016, by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: ATTEST: SAM LICCARDO Mayor TONI J. TABER, CMC City Clerk 21 T-31002/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

37 RD:JVP:JMD 04/29/2016 File No. PDC ORDINANCE NO. DRAFT AN ORDINANCE OF THE CITY OF SAN JOSE REZONING CERTAIN REAL PROPERTY OF APPROXIMATELY GROSS ACRE SITUATED ON THE NORTHEAST CORNER OF THE INTERSECTION OF SOUTH MONTGOMERY STREET AND LORRAINE AVENUE (565 LORRAINE AVENUE), FROM THE LI LIGHT INDUSTRIAL ZONING DISTRICT TO THE DC(PD) PLANNED DEVELOPMENT ZONING DISTRICT WHEREAS, all rezoning proceedings required under the provisions of Chapter of Title 20 of the San José Municipal Code have been duly had and taken with respect to the real property hereinafter described; and WHEREAS, an Addendum to the Final Program Environmental Impact Report (EIR) for the Diridon Station Area Plan certified by the City Council on June 17, 2014, by Resolution No , and the Final Program EIR for the Envision San José 2040 General Plan certified by the City Council on November 1, 2011 by Resolution No , and the Supplemental Environmental Impact Report certified by the City Council on December 15, 2015 by Resolution No , all in conformance with the California Environmental Quality Act, was prepared and approved by the Planning Director for the subject rezoning; and WHEREAS, the City Council of the City of San José is the decision-making body for the proposed subject rezoning to the DC(PD) Planned Development Zoning District; and WHEREAS, this Council of the City of San José has considered and approves the application and use of said Addendum as the appropriate environmental clearance for this proposed project prior to taking any approval actions on the project.; 1 T-31001/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

38 RD:JVP:JMD 04/29/2016 File No. PDC NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN JOSE: SECTION 1. The recitals above are incorporated herein. SECTION 2. All that real property hereinafter described in this section, hereinafter referred to as "subject property," is hereby rezoned as DC(PD) Planned Development Zoning District. The base zoning district of the subject property shall be the DC Downtown Zoning District. The Planned Development Zoning of the subject property shall be that Development Plan for the subject property entitled, Montgomery 7 Proposed Residential Apartments and Retail, last revised on March 22, Said General Development Plan is on file in the office of the Director of Planning and is available for inspection by anyone interested therein, and said General Development Plan is by this reference adopted and incorporated herein the same as if it were fully set forth herein. The subject property referred to in this section is all that real property situated in the County of Santa Clara, State of California, described in Exhibit A attached hereto and incorporated herein by this reference. SECTION 3. The district map of the City is hereby amended accordingly. SECTION 4. The land development approval that is the subject of City File No. PDC is subject to the operation of Part 2.75 of Chapter of Title 15 of the San José Municipal Code. The applicant for or recipient of such land use approval hereby acknowledges receipt of notice that the issuance of a building permit to implement such land development approval may be suspended, conditioned or denied where the City 2 T-31001/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

39 RD:JVP:JMD 04/29/2016 File No. PDC Manager has determined that such action is necessary to remain within the aggregate operational capacity of the sanitary sewer system available to the City of San José or to meet the discharge standards of the sanitary sewer system imposed by the California Regional Water Quality Control Board for the San Francisco Bay Region. PASSED FOR PUBLICATION of title this day of, 2016 by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: ATTEST: SAM LICCARDO Mayor TONI J. TABER, CMC City Clerk 3 T-31001/ doc Council Agenda: Item No.: DRAFT Contact the Office of the City Clerk at (408) or CityClerk@sanjoseca.gov for final document.

40 FILE NO. PDC DEVELOPMENT STANDARDS *In any cases where the graphic plans and text may differ, this text takes precedence.* ALLOWED USES Permitted, Conditional and Special uses of the Downtown Zoning District of Title 20 of the San José Municipal Code, as amended. Conditional and Special uses as identified in the Downtown Primary Commercial Zoning District shall be subject to approval of a Planned Development Permit or Amendment by the Planning Director. DEVELOPMENT STANDARDS BUILDING HEIGHT Maximum building height not to exceed feet. SETBACKS Front, Rear and Side: Zero Setback. PARKING REQUIREMENTS New structures on parcels less than 10,000 square feet or less with up to 50,000 square feet of building area do not need to provide parking. If more than 50,000 square feet of building area, then the project will provide on-site parking, including automobile, bicycle, motorcycle and clean air vehicle parking, in accordance with Chapter (Parking and Loading) of the City of San José Municipal Code, as amended. Each unit shall have two covered parking spaces or; OPEN SPACE Provide that at least 60% of the units shall have private open space of at least 50 square feet, with one dimension of 6 feet wide. Provide at least 3,500 square feet of common open space for the project. ARCHITECTURAL & SITE DESIGN The quality of design of the new structure shall be consistent with the intent of the Residential Design Guidelines and Commercial Design Guidelines, as amended. TRANSPORTATION AND PARKING MANAGEMENT* Offer two free VTA Eco Passes per residential unit for a minimum of 40 years Offer two free car share membership per residential unit for a minimum of 40 years Install secured, protected bike parking space for one per unit on each floor Provide alternative transportation material to residents via the leasing manager. * Transportation and parking management requirements may be substituted with similar measures to the satisfaction of the Director of Planning, Building and Code Enforcement with a new Planned Development Permit Amendment and/or Adjustment.

41 ENVIRONMENTAL MITIGATION The project shall conform to the Mitigation and Monitoring Reporting Plan prepared as a part of the Addendum prepared for this project as amended.

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55 Kurt B. Anderson. AIA Principal 120 W. Campbell Ave, Suite D Campbell, CA Office: kanderson@andarchinc.com Cell Date: Scale: Drawn By: Checked By: 3/25/2016 1" = 10' VD DV Client: Project: Sheet Title: Sheet No.: SUNG-SIMON D. CHO 7917 WINGED FOOD COURT PLEASANT, CA Contact: MONTGOMERY 7 PRELIMINARY RESIDENTIAL AND RETAIL DEVELOPMENT 565 LORRAINE AVE. SAN JOSE, CA UNDERWOOD & ROSENBLUM, INC. civil engineers and surveyors 1630 Oakland Road, Suite A114, San Jose, CA (408) J15063

56 Kurt B. Anderson. AIA Principal 120 W. Campbell Ave, Suite D Campbell, CA Office: kanderson@andarchinc.com Cell Date: Scale: Drawn By: Checked By: 3/25/2016 1" = 10' VD DV Client: Project: Sheet Title: Sheet No.: SUNG-SIMON D. CHO 7917 WINGED FOOD COURT PLEASANT, CA Contact: MONTGOMERY 7 PRELIMINARY RESIDENTIAL AND RETAIL DEVELOPMENT 565 LORRAINE AVE. SAN JOSE, CA UNDERWOOD & ROSENBLUM, INC. civil engineers and surveyors 1630 Oakland Road, Suite A114, San Jose, CA (408) J15063

57 Kurt B. Anderson. AIA Principal 120 W. Campbell Ave, Suite D Campbell, CA Office: kanderson@andarchinc.com Cell Date: Scale: Drawn By: Checked By: 3/25/2015 1" = 10' VD DV Client: Project: Sheet Title: Sheet No.: SUNG-SIMON D. CHO 7917 WINGED FOOD COURT PLEASANT, CA Contact: MONTGOMERY 7 PRELIMINARY RESIDENTIAL AND RETAIL DEVELOPMENT 565 LORRAINE AVE. SAN JOSE, CA UNDERWOOD & ROSENBLUM, INC. civil engineers and surveyors 1630 Oakland Road, Suite A114, San Jose, CA (408) J15063

58 Kurt B. Anderson. AIA Principal 120 W. Campbell Ave, Suite D Campbell, CA Office: kanderson@andarchinc.com Cell Date: Scale: Drawn By: Checked By: 3/25/2016 1" = 10' VD DV Client: Project: Sheet Title: Sheet No.: SUNG-SIMON D. CHO 7917 WINGED FOOD COURT PLEASANT, CA Contact: MONTGOMERY 7 PRELIMINARY RESIDENTIAL AND RETAIL DEVELOPMENT 565 LORRAINE AVE. SAN JOSE, CA UNDERWOOD & ROSENBLUM, INC. civil engineers and surveyors 1630 Oakland Road, Suite A114, San Jose, CA (408) J15063

59 PAVING TO MATCH PLAZA HARDSCAPE PUBLIC WALKWAY UP STAIR 2 p ACCESSIBLE RAMP TRASH RESIDENTIAL / RETAIL 8 5 M O N T G O M E R Y S T. 3 RETAIL 1,856 SF 4 MECH/PLUMB 256 SF 231 SF TOILET 57 SF 7 CORRIDOR CORRIDOR SHAFT FIRE COMMAND RM. 229 SF CORRIDOR ELEV. LOBBY STAIR SF DN UP PEDESTRIAN RAMP 2 9 p p p p p p p p p p p p p p p p p p p p p p p p SIGNAGE UTILITY POLE RESIDENT ENTRY L O R R A I N E A V E. 0 1' 5' 10' 20' Kurt B. Anderson. AIA Principal 120 W. Campbell Avenue Suite D Campbell, CA Office: kanderson@andarchinc.com Cell Date: Scale: Drawn By: Checked by: SUBMITTAL 03/22/2016 AS NOTED CAK DCA Client: MONTGOMERY 7, LLC (SUNG-SIMON D, CHO) 119 HOPEFIELD FOLSOM, CA Contact: Dean Hanson Project: MONTGOMERY 7, LLC PRELIMINARY RESIDENTIAL AND RETAIL DEVELOPMENT 565 LORRAINE AVE. SAN JOSE, CA Sheet Title: CONCEPTUAL LANDSCAPE PLAN STREET LEVEL DON CRAIG & ASSOCIATES LANDSCAPE ARCHITECTS/ PLANNERS Cypress Point Terrace Valley Center, California Cell # Fax # dcla3321@att.net CA. LIC. NO Sheet No.: L-1

60 HARDSCAPE PUBLIC WALKWAY UP STAIR 2 ACCESSIBLE RAMP TRASH RESIDENTIAL / RETAIL M O N T G O M E R Y S T. RETAIL 1,856 SF BIO-RETENTION PLANTER BOXES MECH/PLUMB 231 SF TOILET 57 SF CORRIDOR SHAFT FIRE COMMAND RM. 229 SF 256 SF CORRIDOR CORRIDOR ELEV. LOBBY 274 SF STAIR 1 DN UP PEDESTRIAN RAMP SIGNAGE UTILITY POLE RESIDENT ENTRY L O R R A I N E A V E. 0 1' 5' 10' 20' Kurt B. Anderson. AIA Principal 120 W. Campbell Avenue Suite D Campbell, CA Office: kanderson@andarchinc.com Cell Date: Scale: Drawn By: Checked by: SUBMITTAL 03/22/2016 AS NOTED CAK DCA Client: MONTGOMERY 7, LLC (SUNG-SIMON D, CHO) 119 HOPEFIELD FOLSOM, CA Contact: Dean Hanson Project: MONTGOMERY 7, LLC PRELIMINARY RESIDENTIAL AND RETAIL DEVELOPMENT 565 LORRAINE AVE. SAN JOSE, CA Sheet Title: ZONAL IRRIGATION PLAN STREET LEVEL DON CRAIG & ASSOCIATES LANDSCAPE ARCHITECTS/ PLANNERS Cypress Point Terrace Valley Center, California Cell # Fax # dcla3321@att.net CA. LIC. NO Sheet No.: L-2

61 DEMOLITION NOTES: 1. Coordinate demoliton work schedule with Owner and the contractor prior to start of work. 2. Before any work has begun, call USA-DIG ALERT to locate all utilities in right of way and to house. 3. Provide temporary ramp access over public curb, gutter, asphalt, etc. 4. Provide two (2) applications of 'Round-Up' to landscape areas, for weed abatement 'if needed'. 5. Provide protection for owners and neighbors existing street trees, shrubs and their surrounding root systems including Owners and neighbors, sides and rear yards of property lines. 6. Remove existing landscape debris: weeds, trash, construction materials, etc. to City approved landfill. 7. Provide protection for building walls, foundations, underground utilities, etc.. During all phases of work: demolition, grading, drainage, construction, irrigation, planting, lighting and maintenance. 8. Clean up of all debris on site,.on neighbor's yards, if needed, in the street, adjacent to property, on a daily basis, during all phases of work: start to finish: demolition, construction to final maintenance work. 9. Provide a temporary water retention pit for recovery of debris, spoils and waste water from concrete trucks, or any other waste generated from this site work. Any fines levied by regulatory authorities for violation of existing codes and regulations regarding disposal of such waste shall be paid by the contractor. The contractor shall remove debris from retention pit, as required, to a proper, City approved, landfill. The contractor shall remove the retention pit and all other appurtenances at the completion of work. 10. During demolition and construction work, the contractor shall maintain proper surface drainage to existing drainage swales and existing sub-surface drainage systems if any. 11. Debris from footing, paving, unsuitable soils, rock, etc.... shall be removed to a City approved landfill. 12. Contractor shall fix and repair damage caused by his work to existing asphalt street, curb, masonry wall around PG& E pull box. utility boxes, etc....during demolition, construction on into final maintenance phases of work, at his own expense. 14. Verify the location of existing drainage swales and sub-surface drainage (if any), with owners agent prior to bid. 15. Contractor, at Owners expense, shall provide a soils test and compaction report for the wall footings, etc. prior to start of footing installations. Verify with Owners Agent. 16. Do not disturb existing surface drainage, unless required and directed by Owners Agent during construction. 17. Verify the location of existing and proposed utilities with Owners Agent. Water meters, sewer, sprinklers, valves, electric, gas, cable, phone, fire sprinklers, AC units, etc. 18. Bid the removal of excess site soil/rock cobble to off-site approved City Dump site. This work may have been complete prior to start of landscape portion of the work. Verify with Owners Agent or general contractor prior to bid. OUTLINE OF TRELLIS 1 DN STAIR 2 3 GRADING AND DRAINAGE NOTES: 1. Contractor to review Civil grading & drainage plan with the Owners Agent. Contractor shall receive site grade at plus or minus a 10th. 2. Provide proper surface drainage to swales which sheet drainage away from building. 3. Prepare all planter boxes to receive drainage, irrigation sleeves, and gravel backfill. Shim planter boxes that stand on sloped surfaces near building walls. 4. All landscape surface drainage slopes a minimum of 2%, for first five feet away from building walls & 1% after that, per City code. 5. All landscape grades shall start 6" below stucco screed at base of building walls, per City code. 6. Drainage swales & sub-surface drainage systems shall be installed to direct storm water, if any, away from structures. 7. All planting areas enclosed by walls or paving shall be provided with proper sub-surface drainage inlets. 8. Natural and hard surface drainage shall be directed to drain inlets All top surfaces of wall coping, garden walls, wall, steps, shall slope at 2% for drainage. 10. All new sub-surface drain pipes, shall be ridig, 3" minimum size, SDR 35, minimum fall 1%. Provide connections to new drainage systems provided by others. Verify with Owners Agent prior to bid. 11. All landscape planter finish grades shall be established 3" below top of planter box surface. 12. Area drain inlets are by NDS or equivalent. Use 6" 'Spee-d' basins with 6" round atrium grates in shrub areas. Install pea gravel around drains in shrub beds. 14. City required Best Management Practices (BMP's) are a part of these plans. Install as required. See City Engineers typical plans and Civil plans for detailed information. Landscape contractor to review with Owners Agent, prior to bid. 7 FT. PARAPET WALL W/ TEMP. GLASS PANEL 7 FT. PARAPET WALL W/ TEMP. GLASS PANEL + MEN'S 87'-9" 2 TERRACE 3,436 SF WOMEN'S + STAIR 1 DN '-7" 1 64'-3" 0 1' 5' 10' 20' Kurt B. Anderson. AIA Principal 120 W. Campbell Avenue Suite D Campbell, CA Office: kanderson@andarchinc.com Cell Date: Scale: Drawn By: Checked by: SUBMITTAL 03/22/2016 AS NOTED CAK DCA Client: MONTGOMERY 7, LLC (SUNG-SIMON D, CHO) 119 HOPEFIELD FOLSOM, CA Contact: Dean Hanson Project: MONTGOMERY 7, LLC PRELIMINARY RESIDENTIAL AND RETAIL DEVELOPMENT 565 LORRAINE AVE. SAN JOSE, CA Sheet Title: CONCEPTUAL LANDSCAPE PLAN ROOF DECK DON CRAIG & ASSOCIATES LANDSCAPE ARCHITECTS/ PLANNERS Cypress Point Terrace Valley Center, California Cell # Fax # dcla3321@att.net CA. LIC. NO Sheet No.: L-3

62 OUTLINE OF TRELLIS 1 DN STAIR FT. PARAPET WALL W/ TEMP. GLASS PANEL 7 FT. PARAPET WALL W/ TEMP. GLASS PANEL MEN'S 87'-9" TERRACE 3,436 SF WOMEN'S 2 STAIR 1 DN 2'-7" PLANTER BOX 1 64'-3" 0 1' 5' 10' 20' Kurt B. Anderson. AIA Principal 120 W. Campbell Avenue Suite D Campbell, CA Office: kanderson@andarchinc.com Cell Date: Scale: Drawn By: Checked by: SUBMITTAL 03/22/2016 AS NOTED CAK DCA Client: MONTGOMERY 7, LLC (SUNG-SIMON D, CHO) 119 HOPEFIELD FOLSOM, CA Contact: Dean Hanson Project: MONTGOMERY 7, LLC PRELIMINARY RESIDENTIAL AND RETAIL DEVELOPMENT 565 LORRAINE AVE. SAN JOSE, CA Sheet Title: ZONAL IRRIGATION PLAN ROOF DECK DON CRAIG & ASSOCIATES LANDSCAPE ARCHITECTS/ PLANNERS Cypress Point Terrace Valley Center, California Cell # Fax # dcla3321@att.net CA. LIC. NO Sheet No.: L-4

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68 The following items were received after packets were distributed.

69 From: kathy sutherland Sent: Wednesday, May 11, :00 AM To: Tu, John Subject: Montgomery 7 Hi John - Please forward this letter from Delmas Park to the Planning Commission from the original proposal on Lorraine March 12, I will be referencing it tomorrow and want to make sure they have a copy. Thanks so much, Kathy Kathy Sutherland

70 San Jose Planning Commission Planning Commission Agenda: Item No.: 3.f. Dear Honorable Planning Commissioners, The Delmas Park Neighborhood Association* does not support the rezoning of this property. Our concern is not the height, density or parking provided by the project. Our concern is the lost opportunity to consider a signature development in the area surrounded by Montgomery/Bird Avenue, Park Avenue, Josefa Street and West San Carlos that could include the vacation of Lorraine Avenue. We are a neighborhood that has lived with completely incompatible parcel by parcel land uses. Our neighborhood was developed in the early 1900 s with single-family residences. In the 1950 s a light industrial overlay allowed the development of auto related businesses such as body shops, repair shops, paint shops to be located directly adjacent to single family homes. This was horrible planning and we are still living with it to this day (see photos at end of letter). The proposed development which accompanies this request for rezoning echoes the mistakes of the 1950 s. If you allow the development by right of a six story building on a.10 of an acre lot on a street lined with single story homes without a comprehensive look at the surrounding area and no guarantee that development will integrate with anything else history will likely repeat itself. If you approve the request before you tonight, and the development moves forward it will: Impair any ability to realign Montgomery if needed for High Speed Rail, BART, or the Autumn Parkway extension. Establish a fixed boundary on Park Avenue, a street with a conflicting block by block southern edge between Montgomery and Delmas. Eliminate any chance to have a signature development on the corner across the street from the proposed baseball stadium or any other potential development Eliminate the ability to consider the vacation of Lorraine Avenue, an unnecessary oneblock street between Josefa Avenue and Montgomery Set precedence that would allow dense micro developments to occur lot by lot without parking, leaving future larger developments to address any parking issues created by the micro developments According to the Downtown Zoning regulations, if you approve the applicants request to change the zoning of this site to DC Downtown Primary Commercial, this site can develop with the issuance of a Site Development Permit. In addition there will not be any parking requirements for residents or businesses because it does not meet the threshold of a 10,000 square foot site or 30,000 square feet of building area. This site is approximately 4,500 square feet with 20,000 square feet of building area, leaving the development proportionally out of balance with the Downtown Zoning regulations. If the lot size to building area proportion complied with the Downtown Zoning regulations the building area would be 13,500 square feet. As a

71 neighborhood we are very concerned that the Downtown Zoning regulations would be used to allow the first development on a large city block ripe for redevelopment to be a micro development. This site is located on a prominent corner which would be across the street from the proposed baseball stadium and once again permits piecemeal development of the Delmas Park neighborhood. As a neighborhood, we welcome dense well planned development. We do not support the development of a very small corner parcel where there is the potential to create a signature development located at the gateway to the Diridon Station area, SAP Center, and potential A s baseball stadium Enlargement, intensification or change in use. A. Any structure which is a legal nonconforming use pursuant to Chapter is exempted from the application of this part, except to the extent of the construction of any additional structure or enlargement of the existing structure. B. New structures on parcels that are ten thousand square feet or less with up to thirty thousand square feet of building area do not need to provide parking. C. Additions to structures totaling less than twenty percent of the existing structure are exempt from providing parking. D. Additions to a historic landmark, structures in a historic district, or contributing structures to a historic district, do not need to provide parking if the addition conforms to the Secretary of Interior Historic Design Guidelines. (Ords , 27091, ) If the rezoning will allow the applicant to develop with only a Site Development Permit, we respectfully ask that you deny the applicants request to rezone this site. Looking to the future, we would also ask the Planning Commission to look at the proposed Diridon Plan to make sure the same scenario will not re-occur with any other potential rezoning. Thank you, Phil Hood President Delmas Park Neighborhood Association PS. See attached photos showing houses next to industrial businesses, the result of the last bad planning decision in the Delmas Park neighborhood.

72 *Delmas Park encompasses the area enclosed by the Guadalupe Expressway to the east, W. San Fernando Street to the north, Bird Avenue to the west, and Interstate 280 on the south. It includes the streets Delmas, Lakehouse, Gifford, Park, Josefa, Sonoma, Lorraine, W. San Carlos, Minor, Willis, Illinois, and Auzerais. Family home next to printing shop on 300 block of Gifford Avenue.

73 Home sits in shade cast by medical supplies warehouse in the middle of 400 block of Auzerais.

74 Street of architecturally sound older homes but across the street is a smog station and a fence topped by barbed wire. (corner of Willis and Auzerais).

75 Homes next to construction company. Middle of 400 block of Auzerais.

76 Home on 500 block of Lorraine next to body shop. Fence topped with razor wire comes to border of yard where children play. Incidentally, this area has permit curbside parking for existing restaurants and restrictions on parking stickers for new residents. If residents of the new building do have cars they will be searching for on-street parking two to four blocks away.

77 Other side of body shop on Lorraine. If the zoning change under discussion goes through and this building is constructed, then any of these landowners could apply to put up their own standalone 6-story tower with no parking on a single lot like these.

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