The mixed-use redevelopment of the former Vallco Mall in Cupertino, known as The Rise, has cleared a key planning milestone, paving the way for the project to receive permits and begin construction in the coming months.

Cupertino has approved modified plans submitted by Sand Hill Property Co. for the 50-acre site that will transform the former retail hub into a city center and the most significant source of housing in the city’s pipeline.

The project, which is nearly 10 years in the making and was originally approved in 2018, scaled back its initial proposal by nearly 1 million square feet but increased the number of housing units by 11% to 2,669.

“The market forces that have continued to impact projects across the Bay Area over the past 18 months have pushed us all to new levels of creativity and adaptability, and surfaced an even deeper commitment to working together to ensure this project is successful,” said Reed Moulds, managing director of Sand Hill Property Companies for The Rise. “We are grateful for the ideas and contributions the city has brought to this process and for the spirit of collaboration that helps to secure our resilience as a community today and, critically, as we guide The Rise through these uncertain times and into the future.”

The backstory on The Rise redevelopment

When the project was initially approved in 2018, it was set to feature 2,402 housing units, approximately 1.97 million square feet of office space and about 425,000 square feet of retail space.

The biggest points of tension within the community were the project’s proposed 240-foot residential towers, which if constructed would have been the largest in the city, and the creation of the world’s largest “green roof.”

But Sand Hill walked back those plans, nixing the idea of a 29-acre green roof and limiting building heights to no more than 85 feet. Moulds told the Business Journal in December that the original proposal would have been difficult to build and finance given the challenges posed by the current economic climate.

“In this situation, the rooftop park had become a luxury,” Moulds told the Business Journal in December. “Given its size and the extent to which it would have affected multiple buildings and phases of the project, it was becoming increasingly difficult to build.”

Sand Hill has not disclosed how much the project will cost to fully build out.

While the latest plans increase the overall housing component, the project will reduce the number of homes set aside for affordable housing from 1,201 to 890. The modified plans will also include 1.95 million square feet of office space and approximately 226,000 square feet of retail space.

The project was submitted under SB 35, the California bill that streamlined development applications in cities that had not met housing production quotas from the state.

Along with creating a more vibrant and dynamic downtown, The Rise is a significant project for Cupertino’s future because it will satisfy a substantial component of the housing the city needs to build by 2031.

The state is requiring Cupertino to add 4,588 residential units by then, including 1,193 units and 687 units for very low- and low-income households, respectively. The housing provided meets more than half of the city’s obligations.

“We have continued to work with the Sand Hill Properties team at The Rise to ensure that Cupertino’s priorities are incorporated through every stage of the project’s evolution,” said Pamela Wu, city manager of Cupertino. “Each update provides new opportunities to advance and address comments and feedback from our community. I am pleased that with this approval, the project will be moving forward. This is an important milestone that reflects the collaboration and shared commitment to addressing the housing needs of our community.”

A developer is moving forward with plans to use the builder’s remedy to construct an 11-story, mixed-use project blocks from San Jose’s Diridon Station.

Surinder Singh and his representatives have filed development permits for the project located at 101 and 109 Delmas Ave. that would consist of 80 residential units on top of 1,355 square feet of ground floor retail space.

A convenience store and taqueria currently occupy a 2,305-square-foot, single-story building on one of the parcels that would be demolished to make way for the new development. The businesses would occupy the new retail space once it is constructed, according to planning documents submitted to the city.

Singh told the Business Journal that he would be ready to move forward with construction once the city approves the permits. He referred questions about the project’s required affordable housing units to the architect, MANU Studios, which had not responded back at the time of publication.

San Jose’s lack of compliance with state housing law leaves the city susceptible to what’s known as the builder’s remedy. The provision allows developers to skirt local zoning and planning guidelines so long as the proposed developments are primarily residential and contain at least 20% of units for low-income households.

The city is one of eight local jurisdictions within Santa Clara County not to have an approved housing element, which was required in January of this year.

Under the plan, San Jose is required to add 62,200 residential units by 2031.

San Jose’s most recent plan submittal to the state in November is currently under review by housing officials.

As of December 12, the city had received 28 builder’s remedy proposals.