By Robert Haugh
The Santa Clara City Council gave developer The CORE Companies the green light Tuesday night to replace 160 previously approved apartments at the Agrihood development with just 44 for-sale townhomes.
CORE won the vote Tuesday night despite opposition from City planning staff and a 6-1 recommendation from the Planning Commission to reject the change.
The project is on 1.8 vacant acres at 1816 Worthington Circle, near Valley Fair and Santana Row.
Under the Agrihood plan approved in 2019, the parcel was supposed to contain 160 mixed-income apartments, including 16 below-market-rate units.
CORE now says that project is no longer financially feasible.
Instead, the developer wants to build 44 townhomes. Six will be affordable to moderate-income buyers. CORE will pay an in-lieu fee for the fractional affordable housing requirement remaining under the City’s ordinance.
That means 116 fewer homes and 10 fewer affordable homes than originally approved for the parcel.
City staff recommended denial.
Staff said the change would reduce housing density on a site near transit and major shopping, conflict with several General Plan and Housing Element policies and reduce Santa Clara’s surplus toward its state housing requirements.
The Planning Commission agreed. It voted 6-1 in October to recommend that the Council reject CORE’s rezoning request and subdivision map.
CORE made a different argument Tuesday night. The developer smartly argued that the choice isn’t between 160 apartments and 44 townhomes. It’s between 44 townhomes and an empty lot.
CORE Senior Vice President Vince Cantore told the Council that the previously approved apartment project no longer works financially.
A presentation from the developer estimated the apartments would cost roughly $120 million to build but would have a value of only about $90 million.
CORE President Chris Neale also pointed to the company’s record at Agrihood. CORE has already completed 165 affordable senior and veterans apartments, 36 townhomes, an urban farm, open space and commercial/community facilities on the site.
The developer also had substantial public support.
Before the meeting, the City received 59 letters supporting the townhome proposal and nine opposing it. Supporters emphasized homeownership and the benefits of finally building on the vacant parcel. Several labor advocates also spoke in favor of the project Tuesday.
Longtime Agrihood advocate Kirk Vartan warned the Council that market conditions can change, but rezoning the property could be permanent. He argued the City should hold CORE to the higher-density development originally approved.
Councilmembers Raj Chahal, Albert Gonzalez, Karen Hardy and Suds Jain voted to move CORE’s revised project forward.
Councilmember Kevin Park abstained after long winded remarks against the revision.
Mayor Lisa Gillmor and Councilmember Kelly Cox were absent.
