AGENDA ITEM: VIII-1
MILPITAS PLANNING COMMISSION
STAFF REPORT
March 27, 2019
APPLICATION: KLA New Amenity Building – P-SD18-0011, E-LC19-0001. A
request for a Site Development Permit and Lot Combination to
allow development of a new two-story 25,300-square foot amenity
building, including employee cafeteria, meeting rooms, and outdoor
patio within an existing courtyard on the KLA campus and to merge
two lots, totaling 20.1 acres.
RECOMMENDATION: Staff recommends that the Planning Commission adopt
Resolution No. 19-009 approving the above application, subject
to the Conditions of Approval.
LOCATION: Address/APN: 1 Technology Drive (APN: 086-43-031) and 3 Technology Drive
(APN: 086-43-039)
Area of City: Technology Drive, south of Highway 237, west of McCarthy
Boulevard, and north of Tasman Drive
PEOPLE:
Project Applicant: Nicole Krais, KLA
Consultant(s): Phil Choi, Gould Evans, Architect
Property Owner: KLA Tencor Corp
Project Planner: Lillian Hua, Associate Planner
LAND USE: General Plan Designation: Highway Services (HWS)
Zoning District: Light Industrial (M1)
Overlay District: Recreation and Entertainment
ENVIRONMENTAL: The project is consistent with the Initial Study/Mitigated Negative
Declaration prepared for the KLA Tencor Floor Area Ratio Increase
project (P-EA13-0005), and no conditions have occurred or will
occur on the site to require the preparation of a subsequent EIR or
negative declaration pursuant to CEQA Guidelines Section 15162
(Subsequent EIRs and Negative Declarations). An Addendum to the
Mitigated Negative Declaration has been prepared pursuant to
CEQA Guidelines Section 15164. As a separate and independent
basis, CEQA Guidelines Section 15183 (Projects Consistent with a
Community Plan, General Plan or Zoning).
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EXECUTIVE SUMMARY
The applicant requests a Site Development Permit and Lot Combination to construct one two-story
amenity building, totaling 25,300 square feet, for the KLA campus and to merge two lots, totaling
20.1 acres.
Staff determined the applicant’s request for a Site Development Permit and Lot Combination
complies with the policies and processes outlined in the City of Milpitas General Plan, Zoning
Ordinance, and Municipal Code.
Staff recommends that the Planning Commission open and close the public hearing and adopt
Resolution No. 19-009, approving the subject applications, subject to the conditions of approval
included in as Exhibit 1.
Map 1
Project Location
Project Site
N
Not to scale
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Map 2
Project Site Zoning
PROJECT DESCRIPTION
Background
In 1981, the City Council approved annexation of the Milpitas Business Park and assigned the
Highway Services General Plan Designation and Light Industrial Zoning District to the subject
property. The Council also certified the Milpitas Business Park Environmental Impact Report
(EIR #237) for the project. On October 30, 1995, the Planning Commission approved a Site
Development Permit and Environmental Assessment (EIA 657) for the construction of an office,
manufacturing and industrial campus for the KLA Corporation. The facility consists of six
buildings, totaling approximately 730,000 square feet of floor area on four separate lots, totaling
approximately forty acres. Subsequent approvals include installation of signage, construction of
equipment and their enclosures in 1996, and parking lot restriping and landscaping modifications
in 2009.
In 2014, the Planning Commission approved a Conditional Use Permit to increase the maximum
permitted Floor Area Ratio (FAR) from 0.40 to 0.50 to accommodate future expansion of the 40-
acre KLA campus.
Project Site
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On June 28, 2017, the Planning Commission approved an additional Conditional Use Permit to
exceed the thirty-five feet height limit in the M1 Industrial zoning district with the installation of
three new structures on the KLA site.
On October 15, 2018, the applicant submitted a Site Development Permit and Lot Combination
application to construct a two-story amenity building, totaling 25,300 square feet. The application
is submitted pursuant to Milpitas Municipal Code (MMC) XI-10-57.03(C), which requires
Planning Commission approval for new primary buildings.
The following is a summary of the applicant’s requests:
Site Development Permit: To allow for the construction of one two-story building, totaling
25,300 square feet.
Lot Combination: To permit the merging of 1 Technology Drive (APN 086-43-031) and 3
Technology Drive (APN 086-43-039) to create a 20.1 acre parcel.
Overview
The project site is located between buildings 1 and 3 on the KLA campus. The two-story amenity
building consists of dining space, service counter area, kitchen and a small café on the ground
floor, and multiple meeting rooms, an open lounge and outdoor deck on the second floor. The
building is accessible from all directions, including the breezeway, which connects all the
buildings in the campus. The scope of work also includes reconfiguring the landscaping
surrounding Buildings 1 and 3, the existing basketball court and breezeway. Figure 1 displays a
rendering of the new amenity building.
Figure 1: New KLA Amenity Building
Location and Context
The project site is located on two separate parcels, which will be merged through the proposed lot
combination to create a twenty-acre parcel, if approved. The site is located at the northeast corner
of the South McCarthy Boulevard and Technology Drive intersection. It is bordered by
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Technology Drive to the south, the Coyote Creek and levee to the west and northwest, State Route
237 to the north, and McCarthy Boulevard to the east.
The project site is the KLA corporate campus, comprised of six buildings, surface parking, and
mature landscaping on four parcels. The site is zoned as Light Industrial (M1), and has a General
Plan designation of Highway Services (HWS). Surrounding land uses include State Route 237 to
the north; Coyote Creek and creek trail to the west; Multi-Family Residential uses to the southwest;
industrial/office buildings and uses to the south; and retail and commercial services uses are
located to the east. Vicinity and location maps of the subject site location are included on the
previous pages. For zoning and land use summary, see Table 1:
Table 1: Zoning and Land Use Summary
General Plan Zone Uses
Subject Site Highway
Services (HWS)
Light Industrial
(M1)
Office and
R&D Buildings
North -- -- SR 273 Highway
South Industrial Park
(INP)
Industrial Park
(MP)
Industrial/Office
Building
East Highway
Services (HWS)
Highway
Services (HS)
Staybridge Suites
and Chevron
West -- -- Coyote Creek and
public trail
PROJECT ANALYSIS
General Plan and Zoning Conformance
General Plan
The General Plan designation for the project site is Highway Services. This classification provides
for motels, mobile home parks, and non-retail services such as car-rental offices. As proposed, the
project is in conformance with the policies and standards in the City’s General Plan policies, as
outlined in Table 2:
Table 2: General Plan Consistency
Policy Consistency Finding
2.a-I-2 Promote development within the
incorporated limits which acts to fill-in
the urban fabric rather than providing
costly expansion of urban services into
outlying areas.
Consistent: The project is a two-story amenity
building within an existing industrial office
campus, which is considered in-fill development.
The development will not increase the expansion of
any urban services into outlying areas.
2.a-I-3 Encourage economic pursuits
which will strengthen and promote
Consistent: The project will allow KLA to provide
new amenities to current employees and to attract
new talent. KLA’s continued success encourages
economic development, expands employment
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Policy Consistency Finding
development through stability and
balance.
opportunities, and helps maintain the jobs/housing
balance within the City of Milpitas.
2.a-I-7 Provide opportunities to expand
employment, participate in partnerships
with local business to facilitate
communication, and promote business
retention.
Consistent: The project consists of the
construction of a new employee amenity building,
which allows KLA to attract new talent and expand
employment, as well as promote business retention.
Zoning Conformance
The Zoning designation for the project site is Light Industrial, and the existing industrial office
campus is a permitted use in this zoning district. The project is consistent with the City of Milpitas
zoning ordinance, as demonstrated in Table 3:
Table 3:
Summary of Development Standards
Standards Proposed Complies
Lot Area, minimum None 855,175 SF Yes
Lot Width, minimum None 1090 feet Yes
Front Setback,
minimum
Along major street: 35 feet from
face of curb; Along non-major
street: 25 feet from face of curb.
172’10” Yes
Street Side Setback,
minimum
Along major street: 35 feet from
face of curb; Along non-major
street: 25 feet from face of curb.
220’ Yes
Interior Side Setback,
minimum
None 61’2” Yes
Rear Setback,
minimum
None 116’8” Yes
Floor Area Ratio 0.4 0.38 Yes
Building Height,
Maximum
None. The proposed building
height will not exceeds three (3)
stories or thirty-five (35) feet.
33’4” Yes
Parking R&D: 1/300 GFA
Office within R&D: 1/350 GFA
730,000 SF / 200 SF = 2,434
spaces
2,452 across the
entire campus
Yes
Landscaping Required front yard area and
required street side and yard
area.
Landscaping
proposed within
Yes
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amenity courtyard
area
Proposed Project Details
Specific information regarding project details is provided below to aid the Planning Commission
in making their recommendation:
Site & Architectural Design
The project is designed in a modern and contemporary style. The building consists of dining,
service counter area, a kitchen and a small café on the ground level, and multiple meeting rooms,
open lounge/ outdoor deck on the second level. The building can be accessed in all directions from
the campus, including the open breezeway, which connects all the buildings in the campus. The
massing design maximizes the daylight and views from the building through the large glazed
façade. Shading devices will be installed throughout the building in order to reduce energy cost,
meet the required thermal performance, and provide a comfortable indoor environment. Design
elements from the existing buildings have been incorporated into the new building, like the mullion
modules and concrete panels. Materials from outdoor patio areas into the building have been
carefully selected in order to maintain a seamless design language between inside and outside. On
the roof, mechanical equipment is enclosed by a profiled metal fence with a sound panel inside.
Building materials consist of fiber cement panels, metal canopies, curtain walls, and glass railings,
as seen in Figure 2. The materials and changes to the color treatment are similar to other industrial
buildings surrounding the project site and create a consistent design between the industrial
properties.
Figure 2: East Elevation
Landscape & Open Space Design
The Zoning Code requires landscaping along the front and street side yard areas of industrial
projects. No landscaping will be removed from the front or street side yard areas. The scope of
work removes the existing landscaping within the courtyard to accommodate the new structure.
The revitalized landscape plan focuses on water conservation, adaptive reuse of water and human
health and wellness components. Landscape programming includes a promenade, outdoor dining
spaces, outdoor work spaces, casual meeting areas, recreational lounging, sand volleyball, a
hammock zone, and a small flower garden that features KLA’s existing roses. The project will use
reclaimed water and tie into the existing irrigation equipment. Ornamental pots on the roof deck
will be irrigated with domestic water. Twenty five trees will be removed, two of which are
classified as protected trees, while twenty six trees will be planted in the courtyard. The new
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plantings are drought tolerant and appropriate to the ecological setting. The existing light bollards
will be reused as pedestrian lighting.
Access and Circulation
Access to the project site is provided by a driveway located along Technology Drive that
provides four entries and exits. These driveways are shared amongst all the office buildings on
the project site.
Parking
This site is comprised of a total area of 730,000 square feet of office space and R&D, including
the proposed amenity building. The City’s Zoning Ordinance requires the following parking
calculations:
One parking space for every 350 square feet of office space
One parking space for every 300 square feet for R&D.
This requirement generates a demand of 2,434 parking spaces. The site currently satisfies this
requirement by providing 2,452 parking spaces on the project site.
Lot Combination
Pursuant to MMC Section XI-1-16.08, when a property owner of two or more contiguous lots
desires to combine the lots, the property owner shall file a lot combination application with the
City. If the City finds that the proposed lot combination is in conformance with the General Plan,
the Zoning Ordinance and the City’s development policies, the Department may approve the lot
combination. The lot combination (also known as a lot merger) is in compliance with the General
Plan and Zoning Ordinance, in regards to required lot size and lot width, as demonstrated in Table
3. Therefore, the City recommends approval of the lot combination.
Public Art
Per MMC Section XI-10-14.03 (A)(1), the applicant is required to provide public art. At the
discretion of the applicant, they may provide a financial contribution to be deposited into the Public
Art Fund for acquisition and placement of Public Art throughout the City. This requirement is
incorporated into the Conditions of Approval.
FINDINGS FOR APPROVAL (OR DENIAL)
A finding is a statement of fact relating to the information that the Planning Commission has
considered in making a decision. Findings shall identify the rationale behind the decision to take
a certain action.
Site Development Permit
To approve the Site Development Permit, the following findings must be made pursuant to
Milpitas Municipal Code Section XI-10-57.03(F)(1):
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1. The layout of the site and design of the proposed buildings, structures and landscaping are
compatible and aesthetically harmonious with adjacent and surrounding development.
The project matches the architectural style of the existing industrial buildings onsite and the
building materials and colors are aesthetically compatible with the neighboring buildings
within the KLA campus. The building is composed of fiber cement panels that will be painted
in earthtone colors. The massing design maximizes the daylight and views from the building
through the large glazed façade. Shading devices will be installed throughout the building in
order to reduce energy costs, meet the required thermal performance, and provide a
comfortable indoor environment. Design elements from the existing buildings have been
incorporated into the new building, like the mullion modules and concrete panels. Materials
from outdoor patio areas into the building have been carefully selected in order to maintain a
seamless design language between inside and outside. The proposed landscaping plan focuses
on water conservation, adaptive reuse of water and human health and wellness components,
which creates a compatible and aesthetically harmonious site with adjacent and surrounding
development.
2. The proposed use is consistent with the Milpitas Zoning Ordinance.
The project site is zoned M1 (Light Industrial), and the proposed amenity building is ancillary
to the primary use (Research and Development) of KLA. As demonstrated in Table 3, the
project complies with the development standards as set forth in the Zoning Ordinance.
3. The proposed use is consistent with the Milpitas General Plan.
The General Plan designation for the project site is Highway Services. This classification
provides for motels, mobile home parks, and non-retail services such as car-rental offices.
Highway services are typically located at the intersection of major streets and/or freeways.
The project is consistent with the General Plan in that the project fosters beautification, new
economic, business and employment opportunities. As proposed, the project is in conformance
with the policies and standards in the City’s General Plan policies, as outlined in Table 2.
ENVIRONMENTAL REVIEW
The Planning Department conducted an environmental assessment of the project in accordance
with the California Environmental Quality Act (CEQA). By adoption of Resolution No. 14-022,
on January 8, 2014, the Planning Commission previously approved an Initial Study and Mitigated
Negative Declaration prepared for the development of this site. The original Initial
Study/Mitigated Negative Declaration was circulated for public review between December 18,
2013 and January 8, 2014. Staff has prepared an Addendum to the Initial Study and Mitigated
Negative Declaration Environmental Impact Assessment No. EA13-0005 pursuant to Section
15164 of the CEQA Guidelines. Pursuant to Section 15162, no substantial changes are proposed
in the project scope that would increase any significant environmental impacts that would
necessitate preparation of a supplemental or subsequent initial study, as there are no new
significant environmental effects or a substantial increase in the severity of previously identified
significant effects.. A copy of the Addendum (Exhibit 2 of Attachment A) as well as the original
Initial Study/Mitigated Negative Declaration (Attachment C) and mitigations are attached for the
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Planning Commission’s review and consideration. The previously approved mitigation measures
are identified below and will be incorporated into the project as conditions of approval:
1. AES-1: Detailed architectural plans shall be submitted to the Planning Department for early
review and consultation.
2. AES-2: Design of buildings and structures shall be consistent with the scale and form of
existing development and design on site.
3. AES-3: No blank, or windowless walls or sides of buildings shall be allowed to face the
exterior of the site or be visible from State Route 237, Technology Drive, or South
McCarthy Boulevard.
4. AIR-1: The following measures shall be implemented during all construction activities:
a. Water all active construction areas and exposed surfaces (e.g., parking areas,
staging areas, soil piles, graded areas, and unpaved access roads) at least two times
per day.
a. Cover all trucks hauling soil, sand, and other loose materials or require all trucks to
maintain at least 2 feet of freeboard.
b. Pave, apply water three times daily, or apply (non-toxic) soil stabilizers on all
unpaved access roads, parking areas and staging areas at construction sites.
c. Sweep daily (with water sweepers) all paved access roads, parking areas, and
staging areas at construction sites.
d. Sweep streets daily (with water sweepers) if visible soil material is carried onto
adjacent public streets.
e. All vehicle speeds on unpaved roads shall be limited to 15 miles per hour.
f. All roadways, driveways, and sidewalks to be paved shall be completed as soon as
possible. Building pads shall be laid as soon as possible after grading unless seeding
or soil binders are used.
g. Idling times shall be minimized either by shutting equipment off when not in use
or reducing the maximum idling time to 5 minutes (as required by the California
airborne toxics control measure Title 13, Section 2485 of California Code of
Regulations).
5. AIR-2: Clear signage shall be provided for construction workers at all access points.
6. AIR-3: All construction equipment shall be maintained and properly tuned in accordance
with manufacturer’s specifications. All equipment shall be checked by a certified mechanic
and determined to be running in proper condition prior to operation.
7. AIR-4: Post a publicly visible sign with the telephone number and person to contact at the
City of Milpitas regarding dust complaints. This person shall respond and take corrective
action within 48 hours. The phone number of the Bay Area Air Quality Management
District shall also be visible to ensure compliance with applicable regulations.
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8. AIR-5: To reduce construction related greenhouse gas impacts, the following measures are
required:
a. At least 15 percent of the construction vehicles/equipment shall be fueled by an
alternative source such as biodiesel and/or electric.
b. At least 10 percent of all building materials shall be local (within 100 miles); and
c. At least 50 percent of construction and demolition materials shall be recycled.
9. GHG-1: Reduce construction related greenhouse gas impacts by incorporating the
following measures are required:
a. At least 15 percent of the construction vehicles/equipment shall be fueled by an
alternative source such as biodiesel and/or electric.
b. At least 10 percent of all building materials shall be local (within 100 miles); and
c. At least 50 percent of construction and demolition materials shall be recycled.
10. GHG-2: Require bicycle parking for 10% of total required parking spots and bicycle
support facilities.
11. GHG-3: Provide public transit information in the employee break room and post
information such as Santa Clara Valley Transportation Authority bus and light rail
schedules, maps, and fares.
12. GHG-4: Facilitate ride sharing by providing sign-up sheets or other measures to allow
interested employees to identify carpooling opportunities.
13. GHG-5: Provide bicycling information and post information such as bicycle route maps
and information.
14. GHG-6: Pre-wire stalls for electric vehicle charging stations for 2% of new parking
capacity.
15. GHG-7: Expand existing rideshare programs to require mandatory inclusion of ridesharing
in employer TDM programs and preferential parking for rideshare vehicles.
16. TRANS-1: Provide public transit information in the employee break room and post
information such as Santa Clara Valley Transportation Authority bus and light rail
schedules, maps, and fares.
17. TRANS-2: Facilitate ride sharing by providing sign-up sheets or other measures to allow
interested employees to identify carpooling opportunities.
18. TRANS-3: Provide bicycling information and post information such as bicycle route maps
and information
19. TRANS-4: Pre-wire stalls for electric vehicle charging stations for 2% of new parking
capacity.
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20. TRANS-5: Expand existing rideshare programs to require mandatory inclusion of
ridesharing in employer TDM programs and preferential parking for rideshare vehicles.
In order to mitigate any potential hazardous material impacts the following mitigation measure has
been added to the conditions of approval:
1. HAZ-1: Prior to the issuance of grading permits, shallow soil samples shall be taken to
determine if contaminants from previous agricultural operations occur at concentrations
above established construction worker and residential environmental screening levels for
pesticides. Any soil with pesticide concentration levels that exceed California State Title
26 threshold limits would be classified as a hazardous material. Once the soil sampling
analysis is complete, a report of the findings shall be provided to the Planning Manager of
the City of Milpitas Planning Department for review prior to issuance of grading permits.
If contaminated soils are found in concentrations above established thresholds for worker
safety, a Site Management Plan (SMP) shall be prepared by a qualified hazardous materials
consultant to establish management practices for handling contaminated soil or other
materials encountered during construction activities.
As a separate and independent basis, the project is exempt from further CEQA review pursuant to
Section 15183 of the California Environmental Quality Act, which applies to projects which are
consistent with the development density established by existing zoning, community plan, or
general plan policies for which an EIR was certified shall not require additional environmental
review, except as might be necessary to examine whether there are project-specific significant
effects which are peculiar to the project or its site. The project consists of a new amenity building
that complies with the City’s existing zoning, specific plan, community plan, and general plan.
Therefore, no further environmental review is required.
PUBLIC COMMENT/OUTREACH
Staff provided public notice of the application in accordance with city and state public noticing
requirements. At the time of publishing this report, there have been no public comments received.
A notice was published in the Milpitas Post on March 15, 2019. In addition, 14 notices were sent
to owners and residents within 300 feet of the project site. A public notice was also provided on
the project site, on the City’s Website, www.ci.milpitas.ca.gov, and posted at City Hall.
RECOMMENDATION
STAFF RECOMMENDS THAT the Planning Commission:
1. Open the Public Hearing to receive comments;
2. Close the Public Hearing;
3. Consider the Addendum in accordance with CEQA; and
4. Adopt Resolution 19-009, approving Site Development Permit P-SD18-0011 and Lot
Combination E-LC19-0001, subject to the findings and Conditions of Approval
ATTACHMENTS
A: Resolution No. 19-009
B: Project Plans
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C: P-EA13-0005 Initial Study/Mitigated Negative Declaration
D: Mitigation Monitoring and Reporting Program
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