Planning Commission - Special Meeting

Call the meeting to order. Call the meeting to order. Pledge of allegiance with Commissioner Avasti to lead us. Thank you. Can we take the roll call please?

Madina.

Good

evening, commissioners, staff. Hold on just a second. Good evening. Oh, what's happening again?

Testing.

We are trying to resolve a technological issue having to do with the audio. Please stand by.

Test. Test. Test. Test.

Perfect. Thank you. Thank you for your patience. Good evening, commissioners, staff, community members. I I will take attendance starting with commissioner Castillo. Aye. Commissioner Brown? Here. Commissioner Calkins? Here. Commissioner Awassee?

Here.

Commissioner Galong is absent this evening. Vice chair Kong? Here. And chair Gupta?

Here.

Thank you.

Thank you. Next is conflict of interest declaration. Could I request commissioner sorry, attorney Creech to, go for that, please?

Thank you, chair. I ask the chair and each other member of the Lapeia's Plan Commission to whether he or she has any financial or personal conflict of interest related to any of the items on tonight's agenda.

Commissioner Castillo? No. Commissioner Brown? No. Commissioner Calkins? No. Commissioner Awasthi? None. Vice Chair Kang? None. Chair Gupta? None. Thank you.

I further ask the chair and each other, member of the Milpitas Planning Commission, to please disclose any campaign contributions of $100 or more received within the last twelve months for any of the parties entering into contracts with the city on tonight's agenda, or contributions received from development project applicants for development projects on tonight's agenda.

Commissioner Castillo? None. Commissioner Brown? None. Commissioner Calkins? None. Commissioner Awassee? None. Vice chair Kong? None. Chair Gupta? None. Thank you.

Let the record reflect no reported conflict. Thank you very much, Chair.

Thank you, Darnik Rich. Next is approval of the minutes for today. May I have a motion to approve the minutes for today?

I make a motion to approve today's minutes.

Sorry, the agenda for today, correct? I

have motion to approve the agenda for today.

I did.

Oh, okay. Is there a second?

I'll second.

Thank you. Commissioner Castillo? Aye. Commissioner Brown? Aye. Commissioner Calkins? Aye. Commissioner Awasthi?

Aye.

Vice Chair Kang? Aye. And Chair Gupta? Aye. Thank you.

Next on the item is approval of the minutes for April 22 meeting. May I have a motion to approve the minutes?

I'll make the motion to approve the minutes of April 22.

Do you second?

I'll second that.

Thank you. Commissioner Castillo. Aye. Commissioner Brown? Aye. Commissioner Calkins? Aye. Commissioner Wasi?

Aye.

Vice Chair Kang? Aye. Chair Gupta? Thank you.

Who do I you think think

Yeah. I think Commissioner Brown was absent on the April 22 meeting.

It she's still permitted to vote on them as long as she she has sufficient information to know that the minutes are correct, which I believe she indicated by her vote.

Yeah. Just for the record.

Okay. Moving along. Are there any announcements from the planning commissioners? Normally, they are not. How about the planning director?

Good evening, commissioners and members of the public. Just a quick announcement that the regular regularly scheduled planning commission meeting on May 13 is canceled. There was an item tentatively scheduled for that hearing, but, it isn't ready, so we had to push that back. So our next meeting will be on May 27, at same place. Not the same time. It'll be at 7PM for our regular meeting. So those that's it for the announcements. Thank you.

Thank you, mister Lee. Now we come to the public forum. Supposed to read this note, members of the public are invited to speak on any item that does not appear on today's agenda. Comments will be limited to three minutes or less at the chair's discretion. When called to speak, you are encouraged to state your name for the record. An item not listed on the agenda, no action can be taken. However, the Planning Commission may instruct the staff to place the item on a future meeting agenda. Miss Medina, are there any items from the public, please?

Chair, we have no speaker cards for the public forum.

Thank you. Now we go on to the main item for today, which is the public hearing, District Lot A amendment, 1320 McCanalys Drive, site development amendment. May I request the project planner, Randy Behesh, to make the presentation, please?

Thank you, chair Gupta, and good evening, planning commissioners and members of the public. My name is Randy Baez, associate planner with the City of Milpitas and I'll be presenting a few items tonight regarding the District Lot 3 A amendment located at 1320 McCandless. The application includes a proposal to develop 109 townhomes and 10 accessory dwelling units or ADUs with associated improvements on a vacant 5.49 acre site. Tonight's application consists of five entitlements all of which are being considered together for recommendation for approval for city council. First, a site development permit amendment permit number SA25Dash002 for a major modification to a previous site development amendment.

This amendment will develop the site to 109 townhomes and 10 ADUs. Second, a conditional use permit amendment permit number UA25-three to modify the previously approved CUP for the site, a density bonus permit, permit number DB26-one to utilize state density bonus law incentives, concessions, and waivers in support of the project's affordable housing component. Development agreement DA26-one, development agreement between the city of Milpitas and Lion Living, the property owner to establish the terms and obligations of the project's development including public benefits, infrastructure, contributions, and density as well. And last a vesting tentative map permit number TM26-one01 to subdivide the site into condominiums for sale townhomes. All five entitlements tonight again our recommendation to the city council who will take the final action.

Next slide please. Here is an aerial of the site. As you can see the project is located near the intersection of Great Mall Parkway as well as the Great Mall and McCanless within the McCanless district of the Metro specific plan. The project site is also located approximately half a mile from Milpitas BART Station. And here is a zoning map of the site.

The project site is located. There is zoned MXD 2 Metro and additional properties nearby are have similar zoning designations including MXD 2 Metro and MXD 3 Metro. Two properties north of the project site are zoned BPRDR Metro while the larger Great Mall property to the north is also zoned MXD 2 Metro. Next slide, please. For some sorry this table shows some of the surrounding general plan land use designations and zoning designations.

As mentioned previously, many of the properties nearby have similar similar zoning and general plan use designations. The site is currently vacant. However, there are mixed use buildings to the south and to the west of the site. The property to the east is also vacant and the property to the north is part of the larger Great Mall commercial shopping center. Next slide.

For some background on the property, this site has a long entitlement record going back to the original transit area specific plan or TASP which was adopted by City Council in 2008. The TASP envisioned the transformation of a previously low density industrial area into a mixed use development. In 2011, Integral Communities, the property owner at the time, submitted the original master planned mixed use development application for what was then called the district encompassing these four blocks as you see here along, McCanless. That application included a site development permit, conditional use permit, and tentative map. In 2015, the city approved a site development permit and use permit specifically for Lot 3 which authorized 423 apartment units, 175 hotel rooms, and approximately 59,000 square feet of retail and with a maximum building height of approximately 130 feet.

Over the following years, Lion Living acquired all four blocks of the district now known as The Fields and has been developing them in phases. Lots 12, and four have been built out and Lot 3 A is the final remaining undeveloped parcel within this master development. And the current application before you tonight represents the applicant's updated vision for Lot 3A reflecting current market conditions, updated state housing law, and the city's adopted Milpitas Metro specific plan. Currently The Fields has seven sixty two residential units and over 71,000 square feet of commercial retail space. Lot 3 again is the last vacant parcel.

Next slide. The current application proposes a further amendment to the previously approved site development permit SD15-six as amended later by SA20-four and these changes include the following and are summarized in the table here. So throughout the years the project was modified from proposing four twenty three apartment units to three fifty seven apartments and now 109 townhomes and 10 ADUs. The previous site development amendment also proposed a 162 bedroom hotel which is no longer part of this proposal and this proposal is also reducing the number of commercial space into nine live work units with approximately 3,300 square feet spread out through all nine. There's no longer a rooftop amenity deck to propose and again there's no hotel proposed.

The building height of all the townhomes ranges between thirty six and forty nine feet. Next slide. So again just a breakdown of the project description this is 109 for sale townhomes, 10 ADUs and nine live work units along Market Street to the south. The project is spread out through 17 buildings and proposes two eighteen total covered parking spaces and also includes an urban plaza at the corner of Market And McCanless that I will go into in a further slide. Next slide.

So again these are the 17 proposed buildings. All 17 buildings range from three to four stories in height and feature contemporary architecture with a variety of building materials which I will get further into in another slide as well. Next slide. And here's the traffic and circulation plan although the site is surrounded by streets on all four sides primary access to the site will be limited to one driveway along Market Street to the south in order to provide a more continuous facade and urban perspective from the other streets. The proposed project would require utility services including water, wastewater, storm drain, gas, electrical, and telecommunications as is typical for a project of this size.

The proposed project would connect to existing utilities and the project site is currently undeveloped except for a building foundation from the previous entitlement that was never completed. And additional site improvements can be found in the table below. Next slide. The proposed project incorporates a combination of ground cover, shrubs, and trees that are drought tolerant and consistent with the city's approved plant palette. The vacant site currently has 15 trees, five of which are along McCanless Drive to the west and will remain untouched.

All 10 small trees along Great Mile Parkway to the north will be removed. However 26 additional crape myrtle and golden rain trees are also proposed along the other three street frontages as well as 16 large elm trees along Great Malt Parkway to the north and numerous other trees are proposed throughout the interior of the townhome development. Next slide. Per the Metro specific plan private development must provide on-site open space at a rate of 100 square feet per unit with at least 5% provided as publicly accessible open space. This results in a minimum of almost 11,000 square feet and the proposed project exceeds this requirement by providing a publicly accessible urban plaza shown here in purple on the southwest corner of the site at the corner of Market Street and McCantless.

Next slide. The project is designed in a Northwest contemporary architectural style incorporating modern design principles such as clean boxy massing, flat and low sloped roofs, large black framed windows, and a mixed material facade. Exterior materials are shown here on the bottom which consist primarily of stucco with lap siding accents while brick at the Ground Floor introduces a natural element that helps ground the project. Next slide. The site is located in the Metro High Density Mixed Use Zoning District or MXD2 Metro.

The purpose of this zoning district is to create and enhance areas with a mix of retail, restaurants, entertainment, and commercial service uses on the Ground Floor and residential or office uses on upper stories while maintaining a pedestrian oriented streetscape. I've broken the development standards for the MXD 2 Metro Zone in two separate slides. The first one shown here shows the project meets all of these MXD 2 Metro standards. Next slide. And this table shows the density range, active use, and sidewalk width requirements or standards and although the project does not meet the density requirement of the MXT2 Metro Zone a development agreement is proposed as part of the project that would apply the minimum density in the TASP or transit area specific plan which is 30 dwelling units per acre and that the project does meet.

The project also includes a density bonus permit to reduce the active use and activity street sidewalk width requirements of the MXD2 Metro Zone. Next slide. This slide the general plan designation for the project site is Milpitas Metro specific plan or MMSP. The Milpitas Metro specific plan classifies the project site as residential retail high density mixed use or RRMU and details the goals objectives and policies for that land use classification. The RRMU designation supports vertically mixed use development that has ground floor retail and active uses again with residential or office uses on upper floors.

Table three in the attached staff report further shows how this project meets these findings of the general plan. Next slide. State density bonus law incentives incentivizes affordable housing by offering developers certain benefits. According to state density bonus law, developers that reserve at least 10% of the housing units restricted to lower income residents are entitled to waivers, concessions, and incentives. Although the project is not providing affordable units on-site, state bonus law permits local jurisdictions to provide incentives or concessions even where development may otherwise not be entitled.

As such the city could allow the applicant to request these incentives or concessions through the development agreement. Therefore the applicant is requesting the following incentives or concessions in this table shown here. Both concessions are necessary to make the project economically feasible for the applicant to build since the commercial requirement and minimum sidewalk width requirement would significantly increase the project cost. Next slide. As mentioned previously this project also includes a vesting tentative map as shown here.

The map is required in order to subdivide the property into for sale townhomes. Next slide. The city's affordable housing ordinance or AHO adopted in 2022 applies to all new residential development projects of 10 units or more designed and intended for permanent occupancy such as this project. Pursuant to the municipal code the applicant must reserve 15% of the total number of dwelling units within the development as affordable units. The city's AHO also states that if the project is a residential rental project 100% of the required affordable units must be reserved for very low or low income households.

If the project is an ownership project such as this 100% of the affordable units must be reserved for very low or moderate low income households. As the project proposes for sale townhomes, basically all units would be required at the moderate income or lower level. 15% of the proposed 109 units would result in 16.35 affordable units and although the city's AHO requires the project to construct 15% or 16 of the total number of dwelling units as affordable units on-site some exceptions can be made. All exceptions to this requirement for ownership shall require City Council approval which must be obtained at or prior to the last discretionary approval or development of the project. And since the project proposes 109 market rate townhomes without any below market or BMR units on-site that is inconsistent with the city's AHO However, the applicant is proposing to provide 22 BMR rental units by converting market rate apartments in the adjacent mixed use building to the south of the project site commonly known as Gideon and the Gideon Building currently has two thirteen rental apartment units all of which are currently rented at market rate.

Next slide. So the project includes a development agreement again to preserve the minimum density as approved from the transit area specific plan or TASP. Previously it was 30 dwelling units per acre currently the metro plan requires 40. The initial term of the development agreement is three years and does allow for two separate two year extensions so that would be a total of seven years and the development agreement also includes two public benefits a $400,000 voluntary contribution to the city and conversion of three low income and one very low income units at Gideon which would be above and beyond the AHL requirement of 16 bringing us to a total of 22 affordable units. Next slide.

The proposed project is considered categorically exempt from environmental review under the California Environmental Quality Act or CEQA in accordance with CEQA guidelines section 15.182 for residential projects pursuant to a specific plan and is consistent with the transit area specific plan or TASP EIR which was approved in 2008 as well as the metro specific plan subsequent EIR which was approved in 2023. Next slide. The project is considered consistent with the findings of all five entitlements as mentioned previously. The site development permit is found to be consistent with the zoning, general plan, metro plan and is exempt from CEQA and it is not detrimental to public health and safety. The CUP is also appropriate for the MXD2 Metro Zone and is compatible with surrounding uses.

The vesting tentative map is also suitable for the type of project and density and will not cause any public health or easement issues. The density bonus permit considers the concessions necessary for economic feasibility and is compliant with state density bonus law. And the development agreement is compatible with the MXD2 Metro Zone and promotes public welfare and would be a greater benefit than development without the DA. Next slide. So the development as proposed with the exception as provided would further the city's low and moderate income housing goals as contained in the housing element.

The development must meet either of these requirements to be considered exempt. The development of a larger number of deed restricted affordable units than would be created under the on-site requirement. The development of a larger number of dederstricted affordable bedrooms, the development of larger amount of dederstricted affordable living area, or the development of dederstricted affordable units at a lower average income target as compared to the affordable units or that the project would provide community benefits that exceed the benefit. As mentioned previously the development agreement provides two community benefits and would increase the required number of affordable housing units. Next slide.

As required, public notice was placed in the Milpitas Post. A sign was also placed at the corners of Great Mall Parkway and McCanless as well as the corner of Great Mall Parkway and Center Point. Over a thousand postcards were sent to area residents and landowners and five comments in support of the project have been received to date and I believe all the commissioners have received copies of those. Next slide. In closing, staff recommends the Planning Commission open the public hearing to receive comments, close the public hearing, consider the exemptions in accordance with CEQA, and adopt resolution number 20 six-ten recommending approval of the following five entitlements to the City Council.

Site development permit amendment SA 25 dash zero zero zero two. Besting tentative map TM 26 dash zero zero zero one. Conditional use permit amendment UA 25 dash zero zero zero three. Density bonus permit DB 20 and lastly development agreement BA 20 six-one subject to the attached conditions of approval And that concludes staff's presentation. I'm available for any questions and the applicant Lion Living is also here. Thank you. Thank you Randy. Appreciate it.

Are there any questions or comments from the commissioners?

Yes, Commissioner Brown.

I do have a question. My question, well, my question really is in relation to the affordable housing at the, you know, how they're reducing it at the Gideon as opposed to the site. Why not just allow that the affordable housing to be. Applied to the townhome so that folks can actually purchase as opposed to I'm assuming it's the rental right so instead of purchasing and having affordable housing you can rent below market is that am I understanding that correctly?

Yeah that's correct I would refer that question to the applicant.

Okay well then I'll wait. Okay.

Thank you.

From my perspective, good presentation. I like to see the land finally hopefully getting developed. It's been sitting blank for a while. You did you did well overall. I don't have any specific questions for you on this one. I think we were talking earlier. There might be some more up here though.

First of all, is there any presentation from the applicant? I mean, I forgot to ask earlier.

I'll start over. Chair Gupta,

and my name is Peter Zack, and I'm one of the principals with Lion Living. We don't have a formal presentation, but I just wanted to give a couple of comments. And, you know, first off, just wanted to thank city staff. I mean, we've we've been like this that site's been vacant since 2015, and we we built out the whole master plan, and we've been unable to move that last piece forward because it's just the feasibility has has it it hasn't been able we haven't been able to it forward. And so we've been able to work with city staff collaboratively for the last year to come up with this proposal for you guys tonight to consider that we're excited about.

We think it brings a good balance to the housing. Mean, we've built almost a thousand high end luxury apartments, and that original entitlement had all market rate housing. So here before you tonight, you've got for sale housing, which is very rare to find these days, that's very high quality, and we've got now a below market rate opportunity that we're providing at the Gideon Building, which was the most recent building that we built lower levels than would be provided on-site. So you've got 18 low and four very low. And the most important thing is that those units are already built, so they're guaranteed to be provided, and there's there's no there's no construction risk.

There's no financing risk to building those units. By, you know, by you guys recommending, hopefully, approval of this and the city council ultimately approving this project, those those units are guaranteed. So, you know, we're we're excited about the project, and, thanks staff. We thank the commission for having a special meeting date for this this project, which we think is really important to move forward. The whole project team is here tonight to answer any other questions

you might have. Thank you. Thank you. Continue on with

the questions from the commissioners. Any more questions?

We're waiting for answer for Commissioner Brown's question.

Commissioner Brown's question, you said the applicant will respond to that.

Yeah, the the the question about why are we not providing on-site? It really impacts the feasibility about moving the the townhome project forward. And so and again, providing that guarantee to the city that these these units will be available at the because they're already built and having providing more units, we think it's, you know, a a a good trade off. And again, we're excited about the project.

I definitely agree that it's an exciting project and it has been vacant for a long time. So I'm really glad to see it moving forward. I was just trying to get clarification that the fact that they're at the Gideon and the fact that they're built is really what you're thinking about. But people aren't purchasing them at the Gideon, they're just renting them at low or very low rates. Am I right?

That's correct.

So adding to commissioner Brown's question, is there any way that you can add some for sale units? So people normally, there are a lot of people who would like to own a unit also. And because after living in the rental unit for some time, they will always when they move out, they can't live over here. And that's guaranteed for thirty what happens after thirty years?

The rental the the units that would be provided in Gideon would be deed restricted to be affordable for over for fifty five years. So it is a longer term than thirty years. But in answer to your question, again, it really impacts the feasibility of the of the for sale project, and so that's why we're offering more units at lower levels of affordability at the Gideon project.

Okay. Yeah. This has been vacant for a long time. We want to see something happen there.

Yeah. Vice chair.

Thank you. Thank you, Randy, for the presentation. And I want to thank staff as well for working closely with the applicant to bring something forward. But I do have a lot of concerns because while this is coming to us for a reduction in the scope of this project, to me it's a reduction of total units that's going be available because you're coming from over 300 units now down to about 110 units, right? So it's a loss of potential housing for the city.

And I want to understand if you have actually looked into the economic feasibility of making it a condo rather than a townhouse? Because if you build apartments with high density for sale, would not that have been something that would provide you with the economic feasibility rather than reducing the number of units into a townhouse project?

Yes, I mean we've looked at all sorts of things in terms of the feasibility of the site since 2015. We actually in 2019 or 2020, when we built District Lot 2, which is the the name of the of the building is Graham, we actually plan to build that. That was built as is, and we we tried to sell those as condominium units, and the market just wasn't there for those to be sold. So we ended up moving that forward as a as in operating it as a rental project, but the feasibility just, frankly, wasn't there. So we feel confident that the feasibility is there for this, and and it will swiftly move forward.

And I wanted to also kinda understand better about the feasibility of rentals. Right? Because having been on this Planning Commission for a couple of years, there is another project immediately adjacent to the Lottery, which is on 1500 Centre Point, just right next to it, where the applicant actually came to the Commission. This was just a year and a half ago, and they're coming back to us and say they need more units. They actually came back and modified their project to increase the number of units, because they say the market demanded, a smaller junior junior sized one bedroom and so on and it came back requesting for more units and we approved that because we want more housing in the city However, now I'm hearing that in the span of ten years you have not found a way to make it economically feasible but there are other developers in this area with similar location that have found a way to make it visible so again I'm questioning how much was actually put into the effort of trying to make it visible to provide more units.

There's been a lot of effort. And, you know, Lion Living, the history of our company, we've been around since the late nineteen eighties, and we've built projects all up and down the state of California. Large projects, large scale projects. So if we can't figure it out, I'd be surprised to see someone else who could. So I mean that with all due respect.

I mean, you can see what we've built with those three those three buildings, and we have just not been able to, you know, with the with the interest rates where they are, with the cost of construction, and frankly, with all of the apartments that we've already built, almost 800, that, you know, we're not even, you know, like, at total capacity. So we just have not been able to move forward and we know this is the highest and best use for the site. And frankly, I said earlier, we think it really complements and rounds out the balance of housing because there hasn't been any new for sale housing, you know, you know, as much in the area, especially in in in the Milpitas market. So we hope that we can get your support for approving this project tonight.

Yeah. I wanna add on as well because I've been a long time resident here in Milpitas, and when the district, the fields was initially proposed back in 2015 and so on, I'm not the only one who's very excited for the scope of development that's coming in because it includes hotels, and at that point it was also positioned as a luxury hotel. Virgin Hotel was coming in to build one of their one of a kind here in Silicon Valley and chose Milpitas. And that's the vision that I think many of us in Milpitas have that we would be the hub, the center that would attract a lot of new innovative projects into the city. But hearing this is just another townhome, you know, this is not anything that is going to be giving the city something to be truly proud of it's going to be just another townhome project that we have many in this area and it doesn't distinguish this location.

This is a very prime location. This is a short walk from Bart Station, a short walk from Great Mall, and we envision something a lot more vibrant than townhouse. So that's my position. I just wanted to at least express that, as much as I understand and appreciate all the effort that went in, it's a big disappointment from where it started off from.

Well, I'm sorry sorry to hear you you that you feel that way, and I can understand it. But since remember, since 2015, we built, you know, those other three buildings. We've built, you know, really high end in line commercial space for those buildings. COVID hit. We've had the rise in interest rates. Everyone understands. I mean, there hasn't been a lot of things built, you know, for for many years, and we still are very proud of this project. You know, we're not the type of developers that just come into a city and build something and leave. I mean, we've been, like, we've been here since 2015. So we really care about the city and we wanna do something that's gonna complement all the other things that we've invested here in in the city.

We we've been very patient with retailers that have come into the site. We had many, many offers for other grocery stores to come in, and we held out for a high quality grocery store with Trader Joe's. We've done the same with filling up the the retail space. So well, I mean, I respectfully disagree because I think this is gonna be very high quality housing and it'll round it out and we're still gonna, you know, our hope is that Market Street, we can do farmers markets on, you know, Saturdays and we, you know, we we we plan to be here in the city for a long time and and partners with you for a long time.

Yeah. I appreciate, you know, continue the continued work and support and, you know, making sure that your projects are completed. I appreciate that. I just wanted to just express that from the beginning where it was envisioned to what it is now, it's still a drastic change. Yeah, thank you.

Thank you, Vice Chair Kang. Okay, so I want to kind of follow-up on that a little bit more. I like to really understand why condominiums are not feasible. I

mean, you

I mean, you explained it in generic ways, but I like to kind of quantify it and really understand why you have to have townhouses to make it feasible. Because that means going forward, nobody will want to build condominiums in at least in this area. And they'll all want to say, okay, you know, well, let's just build townhouses because they're more profitable. So can you really explain in a compelling way why you have to have townhouses to make it feasible?

You're you're you're giving me some tough questions here. But, yeah, it's definitely really has to do with the amount of capital that's required and the amount of risk and with construction costs as high as they are for these higher density projects and then where interest rates are to when you're capitalizing the project and and sourcing the debt and then the the amount of risk to sell each individual units. And it's not really an offering that that here is is in the city of Milpitas. So I promise you, we've looked very hard at it and diligently at it, and this is still a great unit that will be available for young families, for young professionals, and and and we know that it can be executed at a high level. So, I mean, that's the best way I answer I have your question.

If the interest rate was lower by, what, two couple of percent, will that make it feasible? Are there some other factors?

Maybe or or even more than that. Yes.

More than that in terms of interest rate or some other things come into play?

I I you know, it's just the economy in general. I mean, with with the costs have not come come down and, you know, high interest rates, it just it's not it's not feasible. Let's I mean, the bottom line. We've been trying to do something with it that complements the rest of the project since 2015.

Mr. Lee, will that make condominiums infeasible for the near future in the city of Melpitas?

I don't know if I'm equipped to answer that question. Yes, so it's tough to say.

Moving on, you mentioned that you will have nine live work units. Can you first of all tell me what do you mean by live unit? How are they different than retail?

Those units are set up to operate a business on the Ground Floor, and those are right along Market Street across the retail that's that's literally right across the street so that it'll interface with the retail that's there, and you can buy the unit that's your home and operate your business out of the 1st Floor.

In the Ground Floor. Right?

Correct.

So when you say operate your business, what kind of businesses will be there? They're not really retail shops. Right? You can't really have customer coming in and buying something.

I mean, it's a CPA, you know, legal services, you know, those types of professional services. Mean, there's all the architect that that I have here probably who has designed it and designed many knows what types of businesses are typically in those live work units because I know that you want you wanna chime in, Michael?

Just to help you. Actually, live work units are incredibly flexible. They can be as boring, assuming nobody's an accountant, could be a CPA's office, but it's also hairdressers. It's also little cafes. They have coffee shops. They have architects' offices. It's about as varied as the retail across the street. The only thing you really don't have the ability to have huge kitchen facilities. Anything else is doable. And there's at least five or six live work communities we've developed.

It it has been varied as wedding planners, cake baker ing. I it's it's across the board. And and the beauty of living upstairs and going downstairs thing and and these are designed not as, like, close off. This is all glass, just like a retail. It has its own door.

So you you made a very good question, councilman, is can a customer go there? They have their they not only have a door, they have their own door just for the retail. So it's it's not a it's not it think of it just like a shop. It's kind of the classic, you know, marketplace that you would everybody would always want. And and to your point, it's like something special, you know, you wanted hotel rooms, but this is a chance that someone can actually buy a unit and actually have their business down below. It's it's really unique.

So why limit it to only nine units then? Can't you have more?

It's it's set up right now for the nine units, but all those units that are front the street, they're compatible and there could be more, but we're kind of guaranteeing that at least there'll be at least nine that front across the retail that's right across the street. But, yeah, there's definitely that Ground Floor all the way along Market Street. Those units are set up. And other than the the plan one, right, Michael, that it can be

Do you do you have the image of that'd probably be super helpful for you to see the image it. You imagine shops, and it's it's like right out of, like, walking downtown San Francisco with shops on the ground and people living above.

We we actually have them in Milpitas right now, just catty corner from where we're at

right now. Exactly. I don't

know if you're familiar.

So what is the reason of putting them on Market Street kind of in the back alley as opposed to on Great Mall Parkway, probably for the

parking We wanted we wanted to bookend the retail across on the Gideon. So we see Market Street as this it's designed actually traffic wise to be able to be shut down. And so the idea is that would be where the farmer's market is. There could be festivals there, vegetables being sold at different times, but it was intended in the the original intent of the specific plan was that would become this Market Square, and it would often be shut down for all kinds of city city events, neighborhood events, holidays. And then so those we located those specifically to embrace that to encourage it.

And it's more oriented for the pedestrian traffic that Market Street is as well as McCanless.

So Yeah. It's it's just gonna be you know, the the traffic on Great Mall in McCan is is, you know, fast. So this wanted to be a more pedestrian friendly environment.

So interesting that all the notes we got are from different businesses over there, you know, it was approving your project. They're all looks like retail businesses. They probably don't want any more retail businesses. Is that the reason they're supporting your project, or there is some other reason?

No. I mean, I think that they've they've wanted for the ones that have been there for a longer period of time wanted to see that site developed. Right?

Yeah.

And then there's been newer ones that are that that have been have come in recently and, you know, they want customers and they like home ownership because that's like a built in long term customer. But just to give you some perspective, we've got seven we built 70,000 square feet of retail space that's built in those three buildings. Right? And we only have we still have 20,000 plus square feet of retail that we haven't been able unable to lease despite owning these buildings for so long. So there's still a lot of opportunity, and, you know, if if I don't think any of them are afraid of competition.

I think people want more retailers to come in. They want more residents to come in and so that their businesses can grow.

So that 20,000 square feet you said is is vacant, is that the same building where Trader Joe's is or somewhere else?

There's and the majority of it is there is some in the building that Trader Joe's is. The majority of it is in Gideon, which is right across the street from it with Market Street, know, in between this this site and and Gideon. And then I think there's a little space still at Graham. Okay. That was probably the majority of the space is at Gideon.

Gideon has retail space and the Ground Floor. Yeah.

It has almost 14,000 square feet.

Many people don't even know about it. I don't know. It's it's it's not compared to Trader Joe's and all the businesses there, I mean, Gideon retail spaces are probably hidden, know. Mhmm. Okay. Next question is regarding that what you call public space in the corner there. Mhmm. About 20,000 square feet. What what does it include? What does it have?

It's a public plaza park gathering area, urban plaza. It's kind of at the center of the of the field's master plan, and it's really in keeping with the original design for the master plan. So that really that's one thing that really hasn't changed so much that that was there, you know, with the original approvals back in 2015.

So urban plaza means what? I mean, will there be some restaurants, shops? What do mean by urban plaza? It's kind of a vague word.

It's so convenient because we did the architecture, but we also did the landscape architecture. It's easier on them because they don't have to deal with two different firms. The beauty of that plaza is it's called a plaza, but it's really designed. And that actually is the first cover sheet. You see a rendering of it. It's designed for complete flexibility. So even if traffic is going, there's a stage, there's a lawn for kids to run around on. There's shaded seating that just kind of has this arbor all lit up at night thing. So the idea is in daytime, at nighttime, there's all different activities that go on. The farmer's market can blend into there.

You can like it would be, you could be food trucks in front and that could be the eating area. It's a very large lawn area, but then with seating wrapping all the way around it with kind of an informal stage. And what's acoustically what's nice is the buildings are kind of flanking space, so it'll feel really good and acoustically it'll be great. There's a on the very first slide of the there's a three d rendering of what it'll look like. I think it's literally the first sheet

Let me see the cover sheet. Me see that,

please. Yeah.

So the idea is wrapping seating, different types of seating, built in flexible seating, lawn to play. You know, people go out and and, again, kinda to to why we located this on this corner versus on the other side. This is this is the pedestrian side. This is where this is from this plaza that goes right down to the other live work units.

So you could have like some concerts or something. Absolutely.

It's designed for that. Actually, it's a like a stadium seating. Uh-huh. So there's two different levels and then seating above. You can see kind of the imagery. Good job. Thank you.

Perfect. Okay. That's interesting.

Yeah. And it has this really, really neat trellis that kind of wraps the circle. We wanted it to be more free form design to kind of like be a piece of nature in an urban grid. And then we're using the planters out on the street for water quality, so it would be saving saving the planet and making for a great space at the same time.

Are there more questions from the commissioners? In the meantime, you might have thought of something else.

Is this going to have a wall around this townhomes or is it going to be open even the urban plaza?

It's actually a great question. The entire thought of this whole development is exactly the opposite of that. It does not have a wall. It's all open. In fact, we're encouraging people to walk through this development. We actually have public walkways that two main public walkways that go right through the middle and all the way on the outside. No walls. All all open to the public.

But there won't be any HOA required?

I mean It will all be maintained by the HOA, but it'll be open to the public.

Okay. Good question.

The roads yeah. The roads inside the complex are going to be city roads?

Or No. Private private roads.

Okay. And they'll be maintained by the HOA? Yes. So you can restrict anytime you can restrict people to come in and go?

It's really not designed for anybody, the public, to drive in to those roads. There's not gonna be bollards or gates. Anybody could drive in technically, but there's no reason for them to go in. There's public parking on the outside streets. It's it's they're more like lanes than really roads inside. And it but the the pedestrians can walk right through it in all the walkways. There's no gates to go through or anything.

So how long do you plan to take to build this entire complex?

It'll probably take somewhere between fifteen to eighteen months.

So you're to start it right away,

think we got to do plan development and get the plans approved through the city. So you're probably about six or nine months to do that but I could see start a construction within six or eight months from now. Definitely a clear possibility.

And what will be the range of square footage and the price range of these units?

They they range from the smallest unit. All of them have two car garages that are attached. The smallest unit has a tandem garage. The plans two, three, and four all have side by side two car garages. The smallest unit, if it's the three story version, is about 1,400 square feet but the four story version is like So it basically ranges from 1,400 square feet all the way up to 2,500 square feet.

So they're good sized homes and that plan one, if it's a if it's the four story version, I mean, if the smallest unit type is three bedroom, three and a half baths with two car garages. And then the larger the larger unit all the other units are are are four four bedroom, three and a half bath with two car garages.

So the kind of narrow unit looks like three or four stories. The footprint ground footprint is kind of small, and they're tall, narrow, and tall. Right? Is that how it goes? So they're four story units. I mean, will that be all staircase? That's kind of rough to work with. Right? I mean Well, let

the architect answer those questions.

It's a great another good question. This is extremely unique townhome. Typically, it's exactly what you said, where the here's the garage, and the walls go straight up. And those are the middle units. But on the ends, there's a tandem garage, a side and then a suit. Instead of going straight up with the tandem, making a very narrow, dark unit, we actually go up and turn it. So instead of one end unit and one thin unit, we actually turn it this way. And it's two corner units, and they have light on both sides with decks on the ends, and so which is very unique. Usually, the sides of townhomes are really ugly and flat and boring. This is exactly the opposite.

It lives as much to the front on the sides as it is to the actual front of the buildings. And you can see in the bottom sketch on the screen, see the decks on the two ends. There's double decks, and they actually have it on the the premier bedroom as well as the living area. And these are usable decks on the sides. So those units, instead of being a long skinny, are actually fat and wide and on a corner. And it's so and the unit actually lives around the deck. Kitchen, living, dining, all around it. It's it's a really bright light unit.

How many units are there in each building, building? Typical. Each building, how many units?

Each building is different. They goes from four four units all the way up to 10.

Oh, see.

Each each building is longer or shorter.

Can I ask a question? Yeah. So help me understand how this translate to the vesting map because the vesting map shows the division of the lots so that it can be made for sale.

So great.

So But now that you guys are staggering things up, how does that work?

Hi. I'm Jason Yury, civil engineer for Lyon. The tenant map has lots created for each of the buildings. So each building will sit on its own lot. These will still be, units that will have condominium airspace for them so that the unit airspace will be sold for condominium purposes.

Is that, I mean, in that case, why don't the whole Lot 3 that we're talking about here be sold as is, right? Does it need to be subdivided?

There's just different preferences for land division purposes, DRE budgeting, of running through a course of a normal subdivision, residential subdivision for common use. So it's just a practice to subdivide the land in different ways. In the market, the builders, they prefer it, you know, set up in this arrangement.

But from buyer's perspective, it's still a so called condominium ownership, right?

That's correct.

But there are now subdivided lots.

Yeah, that's correct. It's still the same.

But that doesn't seem, I don't know, I'm a bit confused, is how common this is because for our other townhouse projects, there's always been one continuous

It's an extremely common practice in the area and throughout California.

I think if I'm understanding correctly, the question of why do the land subdivision, but also the condominium airspace, I believe it's for the common area. Like, you need like, you you have each building as its own land, but then all around it, there's common area, and that is shared ownership across everybody. I believe that's why you would need to use that combination of two types of subdivisions. I'm not sure if I'm using the correct terminology, but plain terms.

Correct. Without

without subdividing it, you will not be able to attain certain things out of it? I'm just trying to understand the benefit of subdividing.

I think there's a whole host of reasons that have benefits for financial purposes, for DRE budgeting purposes, for you know, just flexibility in just the the land division.

Okay.

Can't give a better answer than that.

Alright. Thank you.

It's three or four storied townhouses, and it all has stairs. There are no no elevator, I'm sure. Right? And so so probably it's not gonna be attractive to seniors. I mean, they're going to like three, four stories going up and down all day. So it's only meant for younger people? Is that what the purpose of the building? No.

Not necessarily. But I I will say that this this project or this product has been built before, so it's not like from scratch and it's built in very high end residential areas. So where the buyers have been older so to speak. Yeah, mean it's probably ideal for younger professional or younger families but just because it has the stairs doesn't preclude older people from buying them.

Okay, thank you.

Are there any other questions?

So one last one. Where's the pickleball courts?

He likes pickleball, guess. Commissioner, Vice Chair Kang.

I wanted to circle back on the visibility stuff because it it just came to me that this area, I mean, on you know, you you had planned for hotel to begin with, and this was still in the revision that was done in 2021. Right? It's as recent as four years ago. Hotel was still visible in your eyes. And we have a lot of new hotel projects all over Milpitas.

And in this particular location, it's kind of like a shortage of hotels, I would think, because the only one that's existing is a Marriott Courtyard, which is a very small, low density hotel and nothing else within walking distance of the bar. So how did that also change? And I understand that perhaps there are so many more hotel projects that are sprouting all over Milpitas and why not this area? I know we talked about condo not being visible and apartments not being really visible, but what happened to the hotel vision?

Yeah. It's fair question. When we originally obtained the entitlements for the project, we really wanted that hotel there. But I mean, unfortunately, I don't I don't have a better answer than in terms of what I gave you for the, you know, the the higher density apartments. I mean, the feasibility just isn't there for hotels. We have we we as a company own hotels. We've built them. And and if we could build one here, we would. It's just it we just cannot make that pencil and and and move it forward. And so, again, I go back to the same answer I gave you before.

We think this is, as of right now, unless we wanna continue to have a vacant parcel of land for I don't know how many years to come, this is what we still think we're not we don't think we're settling. So I don't wanna like I wanna make sure that we think that this is a really good complement to what we've already built and we're excited about it. But the the other the other projects we've tried and tried for now eleven years and and and can't can't cannot move them forward.

So so I wanna add on a little bit what, you know, Chad Gupta mentioned about the fact that you have a lot of retail today that hasn't yet been leased, and I agree with him. I think part of the reasoning is many of people here in Milpitas who are locals, we would not be taking that small road inside of Market Street and so on unless we are visiting somebody in there. So from the main streets like from Montague Expressway and from Great Mall Parkway there is no visuals to the retailers that are inside So do you think they can add better signage that's kind of coming in from I don't have the map up here but the road that Mckendalls that's coming in from Great Moor Parkway there should be better visual signs to indicate that there are retail stores inside Cause we do not wanna see that, you know, this project goes up and then now it's a townhouse and people will just drive by and assuming these are all just housing. There's nothing there inside. Mhmm.

So Yeah. I think that's a great point. And so, you know, monumentation signage, way finding signage, to really draw people into what that Market Street really needs to be, you know, the special retail corridor, which is what we want it to be. And so I think we really need to study that and pursue adding better way finding and directional signage and really drawing them in. We have really been working hard to market that space and I can tell you that the biggest obstacle has been that we've got, you know, five and a half acres that are vacant right in front of it.

And so, you know, no one's wanting to go in until they see some activity on that on that site. So but but the signage is is key, and and and and we can definitely work to improve that.

Commissioner Castillo, you had a question?

I have a question.

Oh, not anymore?

Curious, like, I'm just guessing the four bed the four I mean, the yeah. The four bedrooms, probably the eight at the end of the buildings, that's what you're gonna be building the sizes, you know, because that's the biggest ones that I'm just

Michael can come up here and correct me if I'm wrong, but I believe that the larger ones are actually more in the middle of the building. Mhmm. And the smaller units that are rotated are on the ends of the building.

Oh, okay. Just curious.

One more question comes to mind. Talking about the 400,000 that you're paying the city, I don't know what kind of fee you call it, but if they had the full project there according to the original plan, the 300 plus units, it would have a lot more impact fees I guess. So is that a big loss to the city Mr Lee?

So we did look at that and analyze it while working through the development agreement. We did look at how many units would be lost relative to the last entitlement. It would be two thirty eight units, I believe. Our fees are quite high per unit, so if you do the math, it comes out to a sizable number. However, we also wanted to, look at, you know, the impacts of having a lower density development versus a higher density one.

And generally, the area where the impacts go up, the only area really is transportation, which is how we ended up narrowing the focus to the aspects of the fees that really relate to transportation rather than the entire fee itself, or else that would have been a very, very large number. So we do feel like where the development agreement ended up at is based off of sound reasoning in terms of what the actual impacts would be.

Okay, thank you. I guess if you are happy that's okay. I have no further questions.

I have a quick question. The 20,000 square feet of retail on Market Street, has it never been rented? Or people come in and they go out of business or

It's never been rented.

It has never. Have you tried talking to our economic development team here in Milpitas?

I believe so, and our brokers I'm sure coordinate with the city, but I can double check for you on that. I don't know for certain.

We have a great team and they can advertise and they can help get someone around there so you got to work in tandem with them. Maybe something can happen.

Yeah, appreciate that. We'll definitely look into that. Thank you.

And that's that's a great point, commissioner Awassee. Chair, if I could say just a few points on that topic for the commercial. I I do wanna point out for the live work units, that they are as through discussions the intent is to have them be deed restricted, so if I make if I may make kind of an early recommendation is to include a condition of approval that would really memorialize that, although we already discussed it in the staff report. Because in essence what it would do is it would guarantee that these spaces would function just as your traditional retail. Even in mixed use developments, not every space is pure retail.

As one of the speakers mentioned previously, it would just have greater flexibility, meaning that the likelihood of the space actually being used as opposed to maybe in another mixed use development would be greater as a live work unit. I do think that that condition would be appropriate if the applicant agrees.

I'll just the way the conditions are written right now, there's extra glazing that's required for those nine units. So I think it's pretty clear that those are set up for that. I understand your point and rather than try to work on wording or something right now, if you if that's something that the commission would like to see, we we can work with city staff prior to city council then rather than try to figure that out here at the dais, that would be my preference?

Yeah, I think what I was thinking if Attorney Creach agrees is if we are in agreement with that then we can work on something prior to city council. But yes, I do believe that would just really add a stronger commercial element to this. Also want to touch upon a few other subjects. Just want to let the discussion continue because it was such a great discussion. In regards to the, I guess, the seniors, whether this would be a development that could you know be suitable for seniors, I do want to just point out that there are 10 accessory dwelling units, so that does allow for multi generational living. I just want to remind everyone of that.

Jay, just just to point out on that. And, again, Michael can correct me if I'm wrong, but the every single one of these units, they have they're they have a bedroom downstairs. So when you walk walk in. So that can speed I mean, they may not all be meet all the accessibility requirements that you just talked about, but every single one of them has a downstairs downstairs bedroom and bathroom. And then and then on the 2nd Level is is is or I would would so that's the Ground Floor Level, and then the 1st Floor you go up would be your main living area. So sorry. I didn't mean to cut you off, Jay.

So where these these 10 ADUs, which floor are they located?

1st Floor.

Yeah, that's Ground Level. Ground Level.

Yeah. That's good.

Can I follow-up on the ADU question? So if the ADUs when you were flashing through the presentation earlier, there was a map of where the ADUs are located. It looks like it's towards the end of each building. And you mentioned that the end units are gonna be smaller units. So how does that work in the sense that the is the ADU deeded to the same owner of the unit above it, or is it deeded to another unit somewhere in the building? Can you explain how this ADU is tied to the townhouse?

Some very good questions, tonight. So at the ends of each building, that unit that I talked about that did this, it's paired with another unit front, I'll call it. The one that has this the the the inner garage is in the alley on the lane, and the one in front does the same thing, but it also goes down into the ADU. And it's actually you can see them on the screen where it says ADU. It's that end unit.

Potentially, we could add more as desired. But so that that's underneath your unit. Kind of similar to what we talked about with the retail being underneath. It's a similar relationship. That person and it's a, you know, it's a lock off as a separate entrance if it needs to be, and it and so it lives beneath everything. But the person will own it all the way up and be able to rent the ADU. Or or of or they'll have their grandmother living there or their son-in-law or whoever.

So the end unit, if it includes the ADU below it, technically might have square foot total square footage that's pretty decent size. Right? Bigger than just a unit on its own.

Yes.

Okay. And can can you flash that same map again? Because I noticed something interesting. There is also this handicap label units at the corner, and those are not ADU. Those are just regular ramp accessible units. Is it why they're labeled handicap?

There actually is both. There's some that have the handicap symbol, and and what that means is that it's it's adaptable for handicap people downstairs, but there's also ADUs that are handicapped as well. They're they're along Market Street. There's some that are both. Right where it says Market Street.

Right. Yeah.

So it has that handicap symbol in it, but also ADU.

So when you say it's adaptable, the doorways and the handlebars, all those things can be designed into it when the owner choose if they choose to. Right? It's not, like, built in by default if they choose to purchase it.

It's adaptable. Okay. It's designed to not just meet with handrails. That's the easy part. It's that all the door swings are big enough to allow for the movement of wheelchairs and blind people, all kinds of stuff. Levers for the doors that isn't doesn't take up greater force. There's lots of different things. And strike distances on the doors, all kinds of stuff.

K. And,

no steps. Okay. Into the units. That's that's the biggest issue.

And then now that we are looking at this map, there is no playground being provided in this community. Is that correct? There's only, like, open spaces.

In this neighborhood, there's a massive park literally walking distance from this.

Yeah. The MacKendall's Park. But within this community itself, there's no playground structure.

Yeah. What what we wanted that plaza to be is very flexible, and it's an open lawn area. The kids will be running around or my kids would have been running around on that, probably hanging from that trellis too. But but it doesn't have a classic tot lot.

Yeah. And it doesn't have a classic, like, a barbecue area or gathering space other than the plaza. Is that correct?

The the decks themselves, you know, most people do decks. They're, like, five feet wide by, you know, a these are lounges. These are lo loges. They're they're furnishable difference. There's plenty of room for barbecues for people to have their own barbecue right off their kitchen on those on those lozhes.

Okay. Thank you.

Commissioner Basti?

Yeah. I was thinking when there are some on the Market Street, there are some ADU units, but why did you not think of having AD units in all the units so we could increase our Reno numbers and maybe people could sell more?

I just think it's more good question. I don't know. I don't have a good answer for you. I think it's from a marketability standpoint and knowing that those units would be sold with the unit that it's attached to. So, you know, our preference would be to keep it the same and not add the additional, you know, add additional ADUs.

If we came back as we're processing the plans and the, you know, as we're building it, we think that there's opportunity to have more ADUs, we certainly would work with staff to accommodate because it doesn't change the site plan necessarily. So, don't but I don't have the technical answer for you as to why we didn't do more. But we'd definitely be open to to evaluating that, you know, as we're in we get into the plan development phase of it.

Thank you.

So, mister Lee, are we going to add this condition of approval that you or or just not added now and you're going to do it before the city council meeting?

Procedurally, if the commission thought that that

was an

appropriate commit condition, then the maker of the motion in recommending approval or whatever action could say approve with a recommendation to add a condition related to deed restriction of the live work units. I I will say, though, before we make a motion, we do still need a call for public comment.

Yeah. Okay. Good point. Okay, miss Liz. Are there any public comments?

Chair, we have no speaker cards for this project. Thank you.

Okay, so I'm I'm in favor of adding that conditional approval because I think those live work units, we do want to make them stronger, you know, from wording point of view so that they achieve the objective that we're trying to achieve, which is pretty much like retail place with some restriction like this. You can't have a big kitchen or something, but anything else is acceptable.

Right. So simply all you need to say is record you know, you you could make the motion, say, with the addition of a condition of approval restricting the live work units, the deed restricting live work units to commercial purposes. You don't need to formulate the entire commit condition tonight. You can merely say, we recommend that, in which point in time what staff would do between now and the state council hearing is work to develop such a condition to bring forward for the state council's consideration. All you have to do is recommend that the So what you

saying here that I mean, in terms of what is there now, and what are you what are you saying we should do? I mean, what does it what what is it?

First, if we're done with public, public testimony, then maybe what I'd suggest is that we close the public hearing, and then, we could put up the, the recommendation, and I could assist you from there in in language for a emotion.

And if just in case, if your question is related to, like, what would be the purpose of restriction, may perhaps the applicant could confirm, but my understanding is that it would require the 1st Floor to be used as workspace because what sometimes people will do in a live work unit without the appropriate controls will use it just for living, although it's been designed already very much to function as a commercial space, so the likelihood of somebody doing that is, I believe, much lower through design. Having a deed restriction to require that to be used as a commercial space on the 1st Floor is what we are recommending. But you don't you don't need to like go into the details in the motion.

Yeah. Yeah. Fully agree with that concept that restriction. Yeah. Okay. That we can close the public hearing. And now is there any motion about this project from anybody? Anybody has a motion?

I heard recommendation from Commissioner Awasti about increasing the number of EDUs, if possible. Is this something I just heard? I know we just closed public hearing, I'm not sure if

We can reopen public hearing. That's okay. I don't know if that

We did not hear clear response.

Are you proposing that we propose additional ADUs?

That's what I heard from commissioner Ahmad. Still in, we didn't

get the think were just asking a question whether it's feasible.

It was a question if it is feasible for them. Question was that why did they not build more AD units which is easier. Let's say a young person has a fracture. So, they can climb up the stairs and they can be on the 1st Floor where their ADU is or they can rent it out for grandparents or some parents. So that was and to my understanding is that maybe you'll consider it and check it out if more units can be added or not.

But it is up to you for the feasibility of the project. I just see the convenience and I think it will be a good selling point also. And it increases our RENA numbers also. So, we all benefit from that.

Okay, so we are not putting that as a condition of approval?

No, no, no. I think you can work it out later. Yeah.

Condition approval is what we just talked about earlier. So, about the live work units. Anybody has a as a motion to move forward? Commissioner Cawkins.

Yes, sir.

So let me see. I will make a recommendation that we adopt resolution number 26Dash010 recommending the approval of site development permit amendment PDashSA25Dash0002, Vesting tentative map PDashTM26Dash0001 with a conditional use permit amendment PDashUA25Dash0003. Density bonus permit PDashDB26Dash0001, development agreement DA26Dash0001, subject to the attached conditions of approval, and we wanted to add the one yeah.

If I understand that you wanna add a recommendation to add a condition of approval, having deed restrictions on the live workings to ensure that the commercial space is used as commercial space.

Yes. Correct. Thank you. That's my recommendation.

Thank you. That's my motion.

Right?

My motion. Okay.

The second.

I second.

Thank you. Can we take take the vote please?

Yes, chair. Commissioner Castillo. Aye. Commissioner Brown? Aye. Commissioner Calkins? Aye. Commissioner Wasi?

Aye.

Vice chair Kang? Aye. And chair Gupta? Aye. Thank you.

Moved. Congratulations. Recommended. Recommended actually. Recommended. Yeah. Let's go to the city council.

Yeah. Congratulations.

Sorry. Meeting is not over guys. We can go and continue. Is there any new business? There are no items here in the new business. Somebody has new business. In that case, I'd like to read the statement. Any person agreed by any final decision of any board, commission, or department head to the city of Milpitas may appeal the decision to the city council by filing written notice of the appeal with the city clerk within twelve calendar days of of the date of said decision and paying the required fee. This time limit shall be strictly enforced. Okay, with that, we adjourn the meeting. Thank you.