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Draft Housing Element December 14, 2022 18 of 21 residential. The owners of the site are interested in, and have developed preliminary plans for a mixed use development on this site that could accommodate relocated commercial tenants. The adjacent residential includes a combination of apartments, townhomes, and single-family lots. The density proposed on this site is 30-40 dwelling units per acre which is high density and is likely to comprise of apartments or condominiums, possibly with some structured parking. • Area 27: PUSD Vineyard: PUSD has expressed strong interest in development of this 10-acre vacant site with housing, although has requested more of the site be designated for housing, to allow for more units to be developed, versus the currently designated 20 units. While a portion of the lot needs to remain open space per the Vineyard Avenue Specific Plan, it may be appropriate to reduce the open space area down from the current approximately five acres, to closer to approximately two to three acres, still providing a generous open space buffer and potential neighborhood park site and meeting the intent of the Specific Plan. If seven acres of the site were developed at approximately four du/ac, between 28 and 35 units could be constructed. However, it is a policy decision as to whether to reduce the dedicated open space area and increase the assumed capacity. • Area 21 Kiewit: The owner has expressed interest in this site and it is very feasible to redevelop. The biggest concerns with allowing housing on this site are the VMTs (this site has relatively high VMTs) and LOS impact (generating traffic at already impacted intersections). However, it is worth noting that this site will likely be redeveloped in the near future regardless of inclusion in the Housing Element. It is possible that the commercial and/or industrial uses that would be built in-lieu of residential will have similar or greater LOS impacts and the site will still be located in a high VMT area. Given the size of the site, it offers an opportunity to incorporate both high and low/medium density units , including a significant increment of affordable housing in a dedicated project, as well as park and open space area. • Area 23 Sunol Blvd: This site was ranked in the upper-middle tier of the initial rankings. The site is comprised of five parcels. Owner interest has been received for some of the parcels (the northern two parcels and southern parcel). HCD did have some questions related to this site. As such, staff recommends removing the parcels from the overall site for which no owner interest has been received. This reduces the total assumed capacity from 719 units to 459 units. Additionally, the units were split between very low/low income (245 units) and moderate income (214 units). Staff suggests adjusting the assumptions so that the site now includes moderate (214 units) and above-moderate income units (246 units). This adjustment is recommended to ensure all RHNA income categories are met. • Area 22 Merritt and Area 1 Lester: These sites both have strong owner interest and high feasibility. Both sites have residential General Plan land use designations and have been included on successive Council workplans, though they are outside of City limits and will need to be annexed. Both sites are somewhat unique in having active development applications (a PUD application for Lester, and a Preliminary Review application for Merritt) already submitted to