$22.5MM in Community Benefit for Traffic, Public Safety Proposed by Moffett Towers II Project

Moffett Towers II, Sunnyvale City Council, City of Sunnyvale, MT II, Jay Paul Company, Moffett Park, Bay Area

Moffett Towers II, Sunnyvale City Council, City of Sunnyvale, MT II, Jay Paul Company, Moffett Park, Bay AreaCity Council to consider special development permit and development agreement

SUNNYVALE, Calif. – On June 14, the Sunnyvale City Council will consider the Special Development Permit and Development Agreement between the City of Sunnyvale and applicant MT II, LLS (Jay Paul Company) for the proposed 1.7 million square foot Moffett Towers II office campus located on 47 acres in the City’s Moffett Park district.

In keeping with the City’s goals for the district, the area has become a vibrant commercial hub attracting some of the most well-known companies in the high-tech industry such as Google, NetApp, Juniper Networks, Hewlett Packard and Amazon. The Special Development Permit for this project would allow the applicant to demolish approximately 925,000 square feet of existing buildings at the site and construct five eight-story buildings (1.65 million square feet), two four-story parking structures, one five-story parking structure and a two-story amenities building (50,000 square feet).

To encourage access to the project site through alternative modes of transportation (e.g., walking, bicycle, light rail, carpool, bus) and reduce the total amount of vehicular trips generated by the use, the project includes multiple Transportation Demand Management (TDM) measures – preferential parking for carpool, vanpool and electric vehicle users; improved bike and pedestrian access with bike parking and sidewalks, pathways and bike lanes; and direct access to VTA bus and light rail service on Mathilda Avenue via public pathways and private sidewalks.

The buildings, each designed to be bird safe with unique façades, would surround a large landscaped common space for active and passive recreation, including a fitness center, café, pool and sports courts. Proposed landscaping and site improvements would result in 42 percent of the site being landscaped, exceeding the minimum requirement of 20 percent. Landscaping also includes planting approximately 1,556 new trees throughout the project site and preserving 230 existing trees.

The Council also will be considering a development agreement proposed by the applicant granting benefits to both the City and developer. “While a project of this scale certainly fits with the City’s overall vision for the Moffett Park district, its inevitable impacts provided an opportunity for us to work with the developer to address the needs and concerns of our community in meaningful ways,” stated City Manager Deanna J. Santana. “As a long-time developer in Sunnyvale, Jay Paul Company is sensitive to project impacts and has been very responsive in this regard. We’re very pleased to be able to bring this agreement and its proposed $22.5 million in funding for public safety officers and traffic improvements to the Council for their consideration.”

If the agreement is approved, the developer would pay the City a lump sum of $7 million to fund three public safety officers to staff the City’s new Fire Station 5 for seven years. This would help the City provide adequate emergency response service in northern Sunnyvale which includes the Moffett Park district. An additional $11 million would be paid to the City for improvements to the 101/237/Mathilda interchange, currently being designed in partnership with the VTA. Finally, at an estimated cost of $4.5 million, the developer would improve and open to the public a segment of E Street to provide connection between 5th and 11th Avenues for overall improved traffic circulation.

These benefits are in addition to the required development impact fees which are expected to be close to $15 million in one-time revenue – housing mitigation fees ($8.5 million); traffic impact fees ($4.0 million); construction taxes ($1.1 million); and general plan maintenance ($310,900). School impact fees would be paid directly to the Sunnyvale School District and the Fremont Union High School District based on a fixed cost per net new square footage.

In exchange for the benefits outlined in the agreement, the developer would receive additional floor area permitted on the project property not to exceed an 80 percent floor area ratio (FAR) and the project’s entitlements would be vested for 15 years with one five-year extension available. The project would already qualify for a 20 percent FAR increase above the 50 percent base FAR by meeting the City’s Green Building requirements. An additional 10 percent FAR could be allowed if additional green/sustainable features are incorporated; as such, the project is proposing to go beyond LEED Gold and meet current LEED Platinum certification for the new buildings.

In a 7-0 vote on May 23, the City of Sunnyvale’s Planning Commission approved the development permit and agreement with minor changes to the permit conditions.

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