Particle.news

Download on the App Store

Sunnyvale Enacts Retail Mandates for Village Centers but Exempted Projects Will Remove Grocery Stores

State housing deadlines combined with SB 330 constraints prevent the city from applying new retail protections to developments already in the pipeline

Small businesses at the Fair Oaks Plaza on Duane Avenue in North Sunnyvale. The plaza is the planned site for Village Center 5 (Photo by Stephanie Lam / Mercury News)

Overview

  • The master plan update establishes specific retail and office zones in all seven Village Centers to preserve community services.
  • Pre-filed proposals for Lakewood Shopping Center and Fair Oaks Plaza remain exempt from the overhaul and plan to demolish existing grocery stores for roughly 182 townhomes.
  • A developer incentive allowing reduced affordable housing in exchange for retail space expansion has yet to produce any agreements.
  • More than 1,800 residents organized by Himanshu Sethi signed petitions warning that losing grocery stores would create food deserts in underserved areas.
  • Failure to meet state housing targets could decertify Sunnyvale’s Housing Element, stripping the city of zoning authority and risking further retail losses.